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FINANCIAL MARKETS & THE MACROECONOMY
- online version -
Summer 2024 (Session 1)
Course Description:
In this course, students are required to write a paper on a research question related to financial markets and their interactions with the macroeconomic and political environments. Students can choose among the possible research topics that are suggested or identify their own research question independently.
Students will identify relevant data and use simple econometric techniques to find answers for their research question. They will learn how to interpret and discuss their findings in a written paper, and how to present their work in front of an audience.
Learning Objectives:
In the course, you will learn:
. to come up with “real-world” questions that can be answered using data.
. to find the most appropriate data to answer those questions.
. to analyze the data using regression analysis (how to set up a regression, how to
choose the appropriate regressors), and to interpret the results.
. to write more clearly to describe your research question, and why it matters . to communicate (both in writing and orally) your findings to an audience
. to provide feedback to other students regarding their own research papers.
To thrive in this class, you should have a good grasp of econometrics (at least being able to write down and run your own regressions, and interpret by yourself the regression results). Previous finance knowledge is not required.
Writing
This is a writing-intensive course. You will be asked to submit numerous writing
assignments: a proposal, drafts of various sections of the paper, peer comments about your fellow students’ papers, and a final paper.
You will upload your preliminary work to the Canvas course webpage and receive
comments and suggestions from us and from your peers. Each student is also required to provide feedback on other students’ works and to submit written comments on their
drafts.
I expect you to use correct grammar, spelling, and punctuation. Your writing is an aspect of the final paper that will be evaluated. Inaccurate or sloppy writing will severely
penalize your grade.
What separates this course from many other writing courses is that in your written work you are not simply expected to report on other papers’ findings, or survey a particular literature. Instead, you are expected to write about your own findings, obtained from
some simple empirical work (usually an OLS regression).
Course Requirements:
- Computer & Internet:
You will need to have access to a computer, tablet, or phone, with an Internet connection to study remotely this quarter. Students are expected to login to the Canvas page almost daily to check announcements about the course.
Remote learning resources are provided by DTEI and OIT at the website: https://sites.uci.edu/learnanywhere/.
- Canvas Setting and Notifications
UCI students are given a UCI gmail account, but it may not be accessible in certain counties. Therefore, it is very important that you update the Canvas settings and notifications to ensure that you still receive messages and
announcements about the course. Click on “setting” to add another email address and/or a cell phone number to receive notifications. Click on “notification” to
configure how you receive Canvas notifications.
If you need Canvas support you can send an email to [email protected].
- Textbooks:
Optional:
The Elements of Style, by W. Strunk and E.B. White (SW)
Economical Writing, 2nd Edition, by Deirdre McCloskey (McC)
To refresh your econometrics (you probably own this or a similar book already):
Stock, J., and M. Watson (any ed.). Introduction to Econometrics.
Most readings for the course will not be based on books, but they will consist of scholarly journal articles and working papers.
All readings and course slides will be posted on the course website.
Grading:
The main determinant of your grade will be the final paper that you submit at the end of
the term. You will need to submit various written drafts of the paper, at different stages of completion, starting with a proposal, then drafts of the different sections, and a final paper by the end of Finals’ week. In addition to working on your paper, you are required to provide constructive feedback on other students’ work, offering comments and
suggestions on their written drafts, and participating in the discussion forum.
Proposal & Preliminary Drafts |
25% |
Peer Comments |
25% |
Final Research Paper |
50% |
The main course requirements are described in more detail below.
1) Watch Lecture Videos
During the first weeks of the course, I will post short (15-20 min) lecture videos covering some material that is needed for the paper. The first videos will cover the syllabus, notes on writing, and some finance concepts. Later, I will go over a selection of possible topics for your paper. Given that many of you will be off campus, instruction will be entirely asynchronous (that is, lectures are not live, you can watch them at any time).
In the second half of the quarter, we will focus instead on your individual papers: you will submit draft of the different sections, and me, the TA, as well as some of your peers, will give you comments.
2) Final Research Paper
The paper should clearly identify the research question you aim to answer, why it matters, and explain what you do to answer it (what kind of data you use, what
techniques you use). Any paper should include an empirical analysis: this means that you should use the econometric techniques that you have learned in previous courses to tackle your question (usually one or more OLS regressions). You should devote a lot of effort in interpreting the results and understanding what they may depend on.
The final paper is typically 10 to 25 pages in length.
The deadline for paper submission is August 1st (by midnight, upload to Canvas).
The final paper is the single main determinant of your grade. There will be no final exam.