Course ObjectiveThe goal of the course is to introduce you to the economic thinking on
the causes of stock market bubbles and crashes. Two additional goals are
the development of your discussion skills and writing in English.
Course ContentThe financial crisis that started in 2007/2008 led to the most serious
economic and financial crisis since the 1930s. However, many of the
elements of the current crisis are not new. In fact, there is a whole
body of literature studying bubbles and crashes. In this course, we will
learn about historical bubbles, crises and their causes, and the
economic models that offer an explanation for these phenomena. The
models include behavioral finance explanations as well as classical
theories on the behavior of lenders, borrowers, investors and political
Teaching MethodsThe course is structured as a series of discussion sessions, for which
students prepare discussion questions on selected academic papers.
The role of chair is rotated among students. Three assignments deal with
(i) identifying stock market crashes, (ii) predicting crashes, and (iii)
setting up and evaluating an investment strategy that exploits bubble
and crash patterns over time.
Method of AssessmentThe course grade consists for 50% of preparation and in-class
participation and for 50% of the assignments.
LiteratureLiterature (links) are provided.
Target AudienceThe intented audience is second and third-year students of Economics and
Business Economics, (International) Business Administration and
Custom Course RegistrationSBE rules and dates apply for this SBE HP course. Registration via VUnet.
|Language of Tuition||English|
|Faculty||School of Business and Economics|
|Course Coordinator||dr. A.H. Siegmann|
|Examiner||dr. A.H. Siegmann|
dr. A.H. Siegmann
You need to register for this course yourself
Last-minute registration is available for this course.
This course is also available as: