What This Document Is
This is a lecture handout from an introductory-level Financial and Behavioral Economics course (Econ 138) at the University of California, Berkeley. It appears to be the material distributed for the very first lecture, setting the stage for the semester. The handout outlines the course structure and introduces foundational concepts in corporate finance, bridging traditional economic models with behavioral insights. It’s designed to accompany the instructor’s lecture and provide a framework for understanding the course’s core themes.
Why This Document Matters
This resource is particularly valuable for students enrolled in, or considering enrolling in, an advanced undergraduate or graduate-level economics or finance course. It’s ideal for those seeking a clear overview of the course expectations, prerequisites, and the instructor’s background. Students preparing for more specialized coursework in corporate finance, behavioral economics, or related fields will find the introductory material helpful for establishing a solid base understanding. It’s best utilized at the beginning of the course to orient yourself to the material and the instructor’s approach.
Topics Covered
* Course organization and logistical details (syllabus, requirements)
* Foundational principles of Corporate Finance
* The Modigliani-Miller Theorem and its implications
* Prerequisites and recommended background knowledge for the course
* Connections between financial economics and related fields (Political Economy, Development Economics)
* The evolution of thought in financial modeling, from idealized markets to real-world complexities.
What This Document Provides
* Instructor introduction and contact information, including office hours.
* A detailed outline of required background coursework in microeconomics, mathematics, and statistics.
* Discussion of the course’s intended audience and potential career paths for students.
* An overview of the historical context of corporate finance theory.
* Initial exploration of the limitations of traditional financial models and the need for behavioral considerations.
* References to further resources for exploration of the course topics.
