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CANCELLED: Household Finance

Course code
FIN623
Course type
MSc Course
Weekly Hours
2,5
ECTS
5.0
Term
FS 2023
Language
Englisch
Lecturers
Prof. Dr. Nic Schaub
Please note that exchange students obtain a higher number of credits in the BSc-program at WHU than listed here. For further information please contact directly the International Relations Office.

The first objective of this course is to provide students with an introduction to household finance. Household finance deals with the financial decision-making of households. On the asset side of households’ balance sheet, we will look at topics such as portfolio choice and retirement savings. On the liability side, we will consider issues such as consumer debt. We will then talk about ways to improve financial decision-making such as financial education and financial advice. We will also discuss the impact of new technology (FinTech) and new regulations on the quality of households’ financial decisions. As household finance is a rather young field of finance, this course is mainly based on recent academic research.

The second objective of this course is to enable students to design an empirical study in (household) finance. We will discuss in detail how empirical studies in (household) finance are set up. Students will then have to present an existing academic paper. Finally, students will have to put together a research proposal on an empirical research question in the field of household finance. This research proposal can serve as a basis for the master thesis.

Roadmap

  1. Households' Beliefs and Preferences
  2. Households' Assets Choice
  3. Households' Liability Choice
  4. Financial Education and Financial Advice
  5. New Technology (FinTech) and New Regulations
  6. How to Design an Empirical Study in Finance?
  • Get an overview of household finance
  • Understand how households’ beliefs and preferences deviate from rationality
  • Know about households’ decision-making on the asset side and the liability side
  • Understand whether and how financial education, financial advice, new technology (FinTech), and new regulations can improve households’ financial decisions
  • Understand how empirical studies in (household) finance are set up
  • Be able to design an empirical study in (household) finance
Guiso, L., and P. Sodini, 2013, Household finance: An emerging field, in M. Constantinides, M. Harris, and R.M. Stulz (editors): Handbook of the economics of finance (volume 2), 1397-1532 (https://www.sciencedirect.com/science/article/pii/B9780444594068000214).Academic papers (will be made available during the lectures)
Lectures, student presentations, research proposal
  • Presentation
  • Research proposal
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