Research & Teaching Pages of Patrick Toche, keywords: "economics", "toche", "patrick toche"

Spring 2017 -- LBA215 -- Global Financial Management

News

  • Keep informed about homework, changes to the timetable, and other important news

  • Direct Link to this Page (refresh your browser and delete the cache if necessary to see updates)

  • Monday 16 January 2017

  • Thursday 19 January 2017
    • Introduction
      • The slides are hosted here: http://ptoche.github.io/
      • Please read the Introduction from the book and the companion slides.
      • The course outline below is tentative and subject to change! Please check this page regularly for updates.

  • Thursday 26 January 2017

  • Thursday 2 February 2017
    • Chinese New Year: No classes this week!
    • This would be a good time to get started on Project #1.

  • Thursday 9 February 2017

  • Thursday 16 February 2017

  • Thursday 23 February 2017
    • Topics:
    • Quiz #1
      • Quiz this week. Topic: National income and related concepts. Make sure you understand the definitions. Be able to define/explain National Income, Net Foreign Capital, Depreciation adjustments, Purchasing Power Parity exchange rates. See the practice exercises.
      • Selected Quizzes are available online.
    • Project #1
      • Reminder: Project #1 due soon! Scroll down for information.

  • Thursday 2 March 2017
    • Topics:
    • Quiz #2
      • Quiz this week. Topic: National income and related concepts. Piketty's 'first law' of capitalism. Make sure you can rank countries by national income and income per capita. See the practice exercises.
      • Practice

    • Thursday 9 March 2017
      • Topics:
      • Quiz #3
        • Quiz this week. Topics: National income, Growth, Inflation (Chapters 1 and 2).
        • Selected Quizzes are available online.
      • Project #1
        • Project #1 due this week! Scroll down for information.

    • Thursday 16 March 2017
      • Topics:
      • Quiz #4
        • Quiz this week. Topics: Wealth and capital, the capital-income ratio, the transformation of wealth, public wealth and public debt (Chapter 3).

    • Thursday 23 March 2017

    • Thursday 30 March 2017
      • Career Week: Class cancelled at the last minute!

    • Thursday 6 April 2017
      • This Class has been rescheduled for Tuesday 25 April 12:30 or 3:15 (2 sessions).

    • Thursday 13 April 2017
      • Easter Break: No classes this week!

    • Thursday 20 April 2017

    • Tuesday 25 April 2017
      • Rescheduled Class: Your attendance is compulsory!
      • Topics:
      • Quiz #5
        • Quiz this week. Topics: Wealth and capital, the capital-income ratio, the transformation of wealth, public wealth and public debt (Chapters 3).

    • Thursday 27 April 2017

    • Thursday 4 May 2017
      • Topics:
      • Quiz #7
        • Quiz this week. Topics: Wealth and capital, the capital-income ratio, the transformation of wealth, public wealth and public debt, in the United Kingdom, France, Germany, Canada, the United States, with emphasis on chapter 5.
      • Project #2
        • Project #2 is due this week!

    • Thursday 11 May 2017
      • Last class for this course!
      • Quiz #8
        • Quiz this week. Topics: Inequality of labor incomes (Chapters 1-9, with emphasis on chapter 9).
      • Grades
        • Your overall course grades will be made available after our last class in the Grades section below. If you notice any problems, please contact me as soon as possible.

Timetable

  • Thursday 12:30pm-3:15pm  :  Nape3-D07 and Nape3-D09

Syllabus

Reading

  • The main references for this course are the relevant chapters from the following text:

  • Thomas Piketty. Capital in the Twenty-First Century. Harvard University Press. 1st edition, 2014.

  • Refer to the class syllabus for details.

Materials



Projects

  • Project #1

    • Topic: "The Distribution of Incomes in Competitive Sport"
    • Take-Home Group Project. Group Size: 1-5.
    • Select a professional team in a collective sport like Soccer, Basketball, or some other sport. Alternatively, select an individual sport like female tennis, male golf, or some other sport. Do not mix data about different sport.
    • Part 1. Gather data about the incomes earned by at least 10 members of the selected team or by the top 10 ranked athletes in the selected sport, for a single year, e.g 2016. Write the data in a worksheet with the athlete's name along the vertical direction and corresponding income next to it.
    • Part 2. Create a plot of the distribution that you feel best illustrates the data.
    • Part 3. Clearly indicate the data source (website, news article); the currency used; any calculations you have made (currency conversion, translation from monthly to annual, etc.); whether the data is pre-tax or post-tax.
    • Part 4. Take the best paid athlete in your list and estimate their total income accumulated over their career or over a 10-year period. Assume they save a percentage x, earn a rate of return r. Pick numbers you feel are realistic and consider alternative scenarios. How much wealth would they have accumulated over that period? How much would their annual income be at the end of that period?
    • Project Submission: Step 1: Email me the worksheet (.csv or .xls or .xlsx). Step 2: Submit your report on paper and in person, with a cover page listing all the group members' names and student ID numbers, and the following text: "We, the undersigned, certify that this is our own work, and our own work only. No part of this work was inappropriately copied or plagiarized. Credit has been properly given where due." Each group member must sign the cover sheet next to their name.
    • If 2 groups select the same athletes, the project will be assessed competitively by comparing them. You could coordinate each other's actions to ensure you select a unique team or list of athletes.
    • A note on Wealth Calculations is available  [pdf]  [xls].
    • Check this repository for examples of distribution plots. From very bad to much better
  • Project #2

    • Topic: "The Distribution of Wealth At the Very Top"
    • Take-Home Group Project. Group Size: 1-5.
    • Deadline: start of the class on day of class, 4 May 2017.
    • The purpose of this project is to explore the persistence and transmission of wealth at the very top of the wealth distribution, using a ranking of the wealthiest individuals compiled by Forbes Magazine. Download the Forbes List for 1996 [xls] and Forbes List for 2014 [xls] on the world's wealthiest individuals.
    • Part 1. Identify all individuals that appear in both lists, and for each one note their wealth. Note that the names often appear in different forms (e.g. "Gates, William III" and "Bill Gates") so you will need to be careful in matching the names. Using the Consumer Price Index for the United States, convert the 1996 reported wealth to 2014 dollars. Using the 2014-dollar values, compute the annualised growth rate for these individuals' wealth. Compare the highest and lowest growth rates you have computed. Comment on the results. The consumer price index for urban consumers in the United States is available in a spreadsheet [cpi.xls], as downloaded from Fred on 17 March 2015.
    • Part 2. Identify all individuals in the 2014 list who have inherited wealth from an individual in the 1996 list, e.g. Beate Heister & Karl Albrecht Junior inherited from Karl Albrecht (now deceased), while Theo Albrecht Junior inherited from Theo Albrecht (now deceased). The 2014 list contains a column for the individual's age, so this may be used in identifying such instances. In several cases, children have the same surname as their parents, so another strategy is to look through the surnames and do a quick web search to find out if the death was reported in the news. In each case you have identified, note the number of children among which the wealth was divided. Comment. (Note that if a deceased had 20 children, the descendants would likely have dropped out of the list)
    • Part 3. Rank individuals by their age in 2014 and for those individuals over 85 find out how many children they have. First, plot the distribution of wealth among all individuals on the list aged 85-100. Secondly, plot the distribution of wealth among their children, assuming each child receives an equal share of the parent's wealth (e.g. if David Rockefeller Sr has 6 children, each will inherit a sixth of their father's 3 billion, i.e. 0.5 billion). Compare the two distributions and comment.
    • You are encouraged to cooperate on identifying individuals and creating the lists, by sharing your findings with other students from other groups. However, please submit a unique piece of work for each group. Remember to put some thinking into the design of your graphs: are they informative? are they labeled? captioned? legible? proportioned? colorful? simple? pretty? I value explanations and clarity too.
    • Project Submission: Step 1: Email me your data (.csv or .xls or .xlsx). Step 2: Submit your report on paper and in person, with a cover page listing all the group members' names and student ID numbers, and the following text: "We, the undersigned, certify that this is our own work, and our own work only. No part of this work was inappropriately copied or plagiarized. Credit has been properly given where due." Each group member must sign the cover sheet next to their name.

Grades

  • Grades will be posted in this section as they become available. Your course grade is computed as follows:

    • Quizzes have a total weight of 40%.
    • Projects have a total weight of 30%.
    • Participation has a weight of 30%.

  • Quizzes Grades: will be updated after each Quiz.
  • Projects Grade: will be available after each Project.
  • Participation Grades: will be updated at the end of the semester.
  • Overall Course Grades: will be available after the end of the course.