ECON 438 - Market Failure in Financial Markets

Semester Offered: First Semester
Credits (Range): 3 hours
Attribute: 3SS, WR
This seminar uses the theoretical framework used by economists to understand many financial phenomena such as credit rationing, bank runs and panics, and solvency problems. Market failure, a situation where market equilibria fail to be Pareto optimal, often occurs when asymmetric information, market power, externalities, and/or public goods are present. Market failure explains why financial intermediaries exist and provides an economically defensible justification for financial markets regulation.
Enrollment Limit: 10
Instructor: A. Ortiz Bolanos
Prerequisites & Notes
ECON 253 and ECON 255 are required. Consent of instructor is needed if taking ECON 255 at the same time..