Financial
Theory

John Geanakoplos - Yale University

1. Why Finance?

2. Utilities, Endowment, & Equilibrium

3. Computing Equilibrium

4. Efficiency, Assets, & Time

5. Present Value Prices and The Real Rate of Interest

6. Irving Fischer's Impatience Theory of Interest

7. Shakespeare's Merchant of Venice & Collateral, Present Value & the Vocabulary of Finance

8. How a Long-Lived Institution Figures an Annual Budget, Yield

9. Yield Curve Arbritrage

10. Dynamic Present Value

11. Social Security

12. Overlapping Generations Models of the Economy

13. Demography & Asset Pricing

14. Quantity, Uncertainty, & Risk

15. Uncertainty & the Rational Expectations Hypothesis

16. Backward Induction, & Optimal Stopping Times

17. Callable Bonds & the Mortgage Prepayment Option

18. Modelling Mortgage Prepayments & Valuing Mortgages

19. History of the Mortgage Market: a Personal Narrative

20. Dynamic Hedging

21. Dynamic Hedging & Average Life

22. Risk Aversion & the Capital Asset Pricing Theorem

23. The Mutual Fund Theorem & Covariance Pricing Theorems

24. Risk, Return, & Social Security

25. The Leverage Cycle & The Subprime Mortgage Crisis

26. The Leverage Cycle & Crashes