Intermediate Financial Theory

Jean-Pierre Danthine is Honorary Director of the Enterprise for Society Center (E4S), a center affiliated to UNIL-HEC, IMD and EPFL, of which he was Managing Director from its foundation in December 2019 until 30 April 2023. He is a Distinguished Research scholar at IMD and an honorary professor at the University of Lausanne and the EPFL (Ecole Polytechnique de Lausanne). From 2015 to 2021 he was President of the Paris School of Economics. From 2010 to 2015 he was a member of the Governing Board of the Swiss National Bank, of which he was Vice-Chairman from 2012. He was Managing Director of the Swiss Finance Institute from its foundation in 2006 until the end of 2009. Professor Danthine previously taught at Columbia University and held visiting appointments at CUNY Graduate Center, University of Southern California (Los Angeles), Université d'Aix-Marseille, Université Laval (Québec), as well as Universities of Toulon and Dijon. His publications have appeared in Econometrica, the Journal of Political Economy, the Review of Economic Studies, the Journal of Finance and other leading international journals.John B. Donaldson holds the Mario J. Gabelli Professorship in Finance at Columbia Business School. For many years he taught courses both in corporate finance and options. More recently his teaching has been devoted to macroeconomics. His research focuses on the influence of business cycle phenomena on the pricing of financial assets, with a particular emphasis on the impact of the real side of the economy. Most recently he has studied the possible financial implications of a more stakeholder oriented economy. His work has appeared in numerous professional journals, including the Journal of Economic Dynamics and Control, Econometrica, the Journal of Economic Theory, Quantitative Analysis, and the Journal of Monetary Economics. Samuel Danthine is currently associate professor in Economics at École Nationale de la Statistique et de l’Analyse de l’Information (Université de Rennes - ENSAI), where he is also Head of the Risk Management and Financial Engineering and the Economic Modelling and Health Economics master programs. He has previously taught at the Université du Québec à Montréal, and held visiting appointments at HEC Lausanne, the Universidad de Málaga, departamento de Teoria e Historia Economica, the Université de Sherbrooke, and Concordia University.

• Part One: Introduction1. On the Role of Financial Markets and InstitutionsJean-Pierre Danthine, John B. Donaldson and Samuel Danthine2. Finance in the 21st Century: Crisis and SustainabilityJean-Pierre Danthine, John B. Donaldson and Samuel Danthine3. The Challenges of Asset Pricing: A Road MapJean-Pierre Danthine, John B. Donaldson and Samuel DanthinePart Two: The Demand for Financial Assets4. Making Choices in Risky SituationsJean-Pierre Danthine, John B. Donaldson and Samuel Danthine5. Measuring Risk and Risk AversionJean-Pierre Danthine, John B. Donaldson and Samuel Danthine6. Risk Aversion and Investment Decisions, Part I: Subtitle?Jean-Pierre Danthine, John B. Donaldson and Samuel Danthine7. Risk Aversion and Investment Decisions, Part II: Modern Portfolio TheoryJean-Pierre Danthine, John B. Donaldson and Samuel Danthine8. Risk Aversion and Investment Decisions, Part III: Challenges to ImplementationJean-Pierre Danthine, John B. Donaldson and Samuel DanthinePart 3: Equilibrium Pricing9. The Capital Asset Pricing ModelJean-Pierre Danthine, John B. Donaldson and Samuel Danthine10. Arrow–Debreu Pricing, Part IJean-Pierre Danthine, John B. Donaldson and Samuel Danthine11. The Consumption Asset Pricing Model, Part IJean-Pierre Danthine, John B. Donaldson and Samuel Danthine12. The Consumption Asset Pricing Model, Part II.Jean-Pierre Danthine, John B. Donaldson and Samuel DanthinePart 4: Arbitrage Pricing13. Arrow–Debreu Pricing, Part IIJean-Pierre Danthine, John B. Donaldson and Samuel Danthine14. The Martingale Measure, Part IJean-Pierre Danthine, John B. Donaldson and Samuel Danthine15. The Martingale Measure, Part IIJean-Pierre Danthine, John B. Donaldson and Samuel Danthine16. The Arbitrage Pricing TheoryJean-Pierre Danthine, John B. Donaldson and Samuel DanthinePart 5: Topics17. Safe Asset ShortageJean-Pierre Danthine, John B. Donaldson and Samuel Danthine18. Portfolio Management in the Long RunJean-Pierre Danthine, John B. Donaldson and Samuel Danthine19. Discounting, the Dice Model as a CAPMJean-Pierre Danthine, John B. Donaldson and Samuel Danthine20. Sustainable FinanceJean-Pierre Danthine, John B. Donaldson and Samuel Danthine21. Selected Topics in Corporate FinanceJean-Pierre Danthine, John B. Donaldson and Samuel Danthine22. Financial Equilibrium with Di_erential InformationJean-Pierre Danthine, John B. Donaldson and Samuel DanthineWeb Chapters include:Web chapter 1 supplements to Chapter 1: The Solow Growth ModelWeb chapter 2 supplements to Chapter 2: The European Financial CrisisWeb chapter 4 supplements to Chapter 4: Advanced Topics on PreferencesWeb chapter 5 supplements to Chapter 5: Excessive Risk Taking and Under Risk Taking and Rabin’s argumentWeb chapter 7 supplements to Chapter 7: More on the Demand for Assets and AmbiguityWeb chapter 8 supplements to Chapter 8: On Mean ReversionWeb chapter 11 supplements to Chapter 11: Proof of Theorem 11.2, Corollary 11.1, and More on AggregationWeb chapter 12 supplements to Chapter 12: Complements on Bayesian UpdatingWeb chapter 13 supplements to Chapter 13: Option Theory: A RefresherWeb chapter 15 supplements to Chapter 15: An Intuitive Overview of Continuous Time FinanceWeb chapter 16 supplements to Chapter 16: Total Factor Productivity RiskWeb chapter 17 supplements to Chapter 17: CCAPM and Bond HoldingWeb chapter 18 supplements to Chapter 18: More on Variations on the Risk-Free RateWeb chapter 19 supplements to Chapter 19: More on Weitzman and DICEWeb chapter 21 supplements to Chapter 21: Zero Net Present Value Investment