Adriano A. Rampini

Douglas and Josie Breeden Professor of Financial Economics
Professor of Finance and Economics
Ph.D., University of Chicago

Finance III: Corporate Finance Theory (Finance 953)

This second year Ph.D. course provides a rigorous introduction to the theory of corporate finance. The course is co-taught by Adriano Rampini, S. "Vish" Viswanathan, and Ming Yang, and meets in Spring 2018 on Wednesdays, 1:30pm-4:30pm, in the DeSanctis seminar room; the first class meets on Saturday, 1/20, 9:30am-12:30pm, in DeSanctis. Topics covered include static and dynamic security design, liquidity, and macro corporate finance.

[Syllabus. The teaching assistant for this course is Mory Elsaify.]

Spring 2018 Schedule (Tentative)

Week 1: Debt and Financing with Costly State Verification (Yang)
Saturday, 1/20, 9:30am-12:30pm, DeSanctis.
Papers: Townsend (1979).
Additional readings: Gale/Hellwig (1985), Dang/Gorton/Holmstrom (2015), Farhi/Tirole (2015).

Week 2: Security Design and Signaling (Yang)
Wednesday, 1/24, 1:30pm-4:30pm.
Papers: DeMarzo/Duffie (1999).
Additional readings: DeMarzo (2005).

Week 3: Security Design with Moral Hazard (Yang)
Wednesday, 1/31, 1:30pm-4:30pm.
Papers: Innes (1990).
Additional readings: Hebert (2017).

Week 4: Bayesian Persuasion and Information Design (Yang)
Wednesday, 2/7, 1:30pm-4:30pm.
Papers: Kamenica/Gentzkow (2011).
Additional reading: Kolotilin/Mylovanov/Zapechelnyuk/Li (2017), Bergemann/Morris (2017).

Week 5: Coordination Games, Global Games, and Financial Intermediaries (Yang)
Wednesday, 2/14, 1:30pm-4:30pm.
Papers: Morris/Shin (2003).
Additional readings: Diamond/Dybvig (1983), Goldstein/Pauzner (2005), Jacklin (1987), Morris/Yang (2017).

Week 6: Dynamic Financing with Moral Hazard (Viswanathan)
Wednesday, 2/21, 1:30pm-4:30pm.
Papers: Clementi/Hopenhayn (2006).
Additional readings: DeMarzo/Sannikov (2006), Jarque (2010), Zhu (2017), Fu/Krishna (2017).

Week 7: Dynamic Financing with Limited Enforcement (Rampini) 
Wednesday, 2/28, 1:30pm-4:30pm.
Papers: Rampini/Viswanathan (2013).
Additional readings: Albuquerque/Hopenhayn (2004), Cooley/Marimon/Quadrini (2004).

Week 8: Collateral, Asset Prices, and Efficiency (Rampini)
Wednesday, 3/7, 1:30pm-4:30pm.
Papers: Kiyotaki/Moore (1997).
Additional readings: Kiyotaki (1998), Kehoe/Levine (1993), Lorenzoni (2008), Rampini/Viswanathan (2010), Kilenthong/Townsend (2016).

Week 9: Financing Constraints and Business Cycles (Rampini)
Wednesday, 3/21, 1:30pm-4:30pm.
Papers: Bernanke/Gertler (1989).
Additional readings: Scheinkman/Weiss (1986), Carlstrom/Fuerst (1997), Bernanke/Gertler/Gilchrist (1999), Brunnermeier/Eisenbach/Sannikov (2013).

Week 10: Financial Intermediaries and the Macro Economy (Rampini) 
Wednesday, 3/28, 1:30pm-4:30pm.
Papers: Holmstrom/Tirole (1997).
Additional readings: Holmstrom/Tirole (1998), Rampini/Viswanathan (2017), Financial Intermediary Capital, Brunnermeier/Sannikov (2014), He/Krishnamurthy (2012).

Week 11: Capital Reallocation (Rampini)
Wednesday, 4/4, 1:30pm-4:30pm.
Papers: Kurlat (2013).
Additional readings: Eisfeldt/Rampini (2006, 2008), Cao/Shi (2017), Lanteri (2017), Wright/Xiao/Zhu (2017).

Week 12: Dynamic Asset Markets with Adverse Selection (Viswanathan)
Wednesday, 4/11, 1:30pm-4:30pm.
Papers: Daley/Green (2012).
Additional readings: Kremer/Skrzypacz (2007), Guerrieri/Shimer (2014), Williams (2017).

Week 13: Trading with Asymmetric Information (Viswanathan)
Wednesday, 4/18, 1:30pm-4:30pm.
Papers: Kyle (1985).
Additional readings: Foster/Viswanathan (1996), Kyle/Ozhibhaeva/Wang (2017).

Week 14: Delegation (Viswanathan)
Wednesday, 4/25, 1:30pm-4:30pm.
Papers: Alonso/Matouschek (2008).
Additional readings: Amador/Bagwell (2013), Halac/Yared (2017).

Final Exam
Wednesday, 5/2, 1:30pm-4:30pm.