Puzzles in Economics and Finance

3 credits · GSB

This course explores counterintuitive puzzles at the intersection of economics, finance, and public policy, such as why certain markets or institutions are more complex than they appear to need to be, or why some public sector arrangements persist despite seemingly better alternatives. Topics change every year and students will have the opportunity to suggest topics themselves. Puzzles include why the design of the NBA salary cap is so complicated, how one might measure the performance of a University admissions office, what were the interests that shaped the unusual Tobacco Master Settlement Agreement, why yield curves tend to slope down at very long maturities (such as 50 years), how can we improve the US tort system, and so on. Students use AI tools to research each topic in depth ahead of class, then engage in discussion driven sessions that test and sharpen their analysis together. Early sessions are instructor led; as the term progresses, students take on responsibility for proposing topics and leading discussion. Assessment is based on class participation, preparation, and discussion leadership.