Economists can’t agree on whether investors and markets are rational and efficient, as modern financial theory assumes, or irrational and inefficient, as behavioral economists believe. Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Prof. Lo cuts through the debate in this course with a new framework—the Adaptive Markets Hypothesis—in which rationality and irrationality coexist.
Topics:

Introduction and Financial Orthodoxy
Rejecting the Random Walk and Efficient Markets
Behavioral Biases and Psychology
The Neuroscience of Decision-Making
Evolution and the Origin of Behavior
The Adaptive Markets Hypothesis
Hedge Funds: The Galapagos Islands of Finance
Applications of Adaptive Markets
The Financial Crisis
Ethics and Adaptive Markets
The Finance of the Future and the Future of Finance

As part of the Open Learning Library (OLL), this course is free to use. You have the option to sign up and enroll if you want to track your progress, or you can view and use all the materials without enrolling. Resources on OLL allow learners to learn at their own pace while receiving immediate feedback through interactive content and exercises.

The course includes survey and special topics designed for graduate students in the brain and cognitive sciences. It emphasizes ethological studies of natural behavior patterns and their analysis in laboratory work, with contributions from field biology (mammology, primatology), sociobiology, and comparative psychology. It stresses mammalian behavior but also includes major contributions from studies of other vertebrates and of invertebrates. It covers some applications of animal-behavior knowledge to neuropsychology and behavioral pharmacology.

This course exposes students to current issues and language use in German technology, business, and international industrial relations, and discusses ramifications of these issues in a larger social and cultural context. We seek to prepare students who wish to work or study in a German-speaking country by focusing on specialized vocabulary and systematic training in speaking and writing skills to improve fluency and style and emphasizing communicative strategies that are crucial in a working environment. Discussion and analysis of newspaper and magazine articles, modern expository prose, and extensive use of online material are included. Taught in German.

Macroeconomic policy is one of the most important policy domains, and the tools of macroeconomics are among the most valuable for policy makers. Yet there has been, up to now, a wide gulf between the level at which macroeconomics is taught at the undergraduate level and the level at which it is practiced. At the same time, doctoral-level textbooks are usually not targeted at a policy audience, making advanced macroeconomics less accessible to current and aspiring practitioners. This book, born out of the Masters course the authors taught for many years at the Harvard Kennedy School, fills this gap. It introduces the tools of dynamic optimization in the context of economic growth, and then applies them to a wide range of policy questions – ranging from pensions, consumption, investment and finance, to the most recent developments in fiscal and monetary policy. It does so with the requisite rigor, but also with a light touch, and an unyielding focus on their application to policy-making, as befits the authors’ own practical experience. Advanced Macroeconomics: An Easy Guide is bound to become a great resource for graduate and advanced undergraduate students, and practitioners alike.

14.461 is an advanced course in macroeconomics that seeks to bring students to the research frontier. The course is divided into two sections. The first half is taught by Prof. Iván Werning and covers topics such as how to formulate and solve optimal problems. Students will study fiscal and monetary policy, among other issues. The second half, taught by Prof. George-Marios Angeletos, covers recent work on multiple equilibria, global games, and informational fictions.

Professor Blanchard will discuss shocks, labor markets and unemployment, and dynamic stochastic general equilibrium models (DSGE models). Professor Lorenzoni will cover demand shocks, macroeconomic effects of news (with or without nominal rigidities), investment with credit constraints, and liquidity with its aggregate effects.

14.462 is the second semester of the second-year Ph.D. macroeconomics sequence.
The course is intended to introduce the students, not only to particular areas of current research, but also to some very useful analytical tools. It covers a selection of topics that varies from year to year. Recent topics include:

Growth and Fluctuations
Heterogeneity and Incomplete Markets
Optimal Fiscal Policy
Time Inconsistency
Reputation
Coordination Games and Macroeconomic Complementarities
Information

This course is a graduate introduction to natural language processing - the study of human language from a computational perspective. It covers syntactic, semantic and discourse processing models, emphasizing machine learning or corpus-based methods and algorithms. It also covers applications of these methods and models in syntactic parsing, information extraction, statistical machine translation, dialogue systems, and summarization. The subject qualifies as an Artificial Intelligence and Applications concentration subject.

This course focuses on phonological phenomena that are sensitive to morphological structure, including base-reduplicant identity, cyclicity, level ordering, derived environment effects, opaque rule interactions, and morpheme structure constraints. In the recent OT literature, it has been claimed that all of these phenomena can be analyzed with a single theoretical device: correspondence constraints, which regulate the similarity of lexically related forms (such as input and output, base and derivative, base and reduplicant).

This course is the second of the three parts of our graduate introduction to semantics. The others are 24.970 Introduction to Semantics and 24.954 Pragmatics in Linguistic Theory. Like the other courses, this one is not meant as an overview of the field and its current developments. Our aim is to help you to develop the ability for semantic analysis, and we think that exploring a few topics in detail together with hands-on practical work is more effective than offering a bird’s-eye view of everything. Once you have gained some experience in doing semantic analysis, reading around in the many recent handbooks and in current issues of major journals and attending our seminars and colloquia will give you all you need to prosper. Because we want to focus, we need to make difficult choices as to which topics to cover.
This year, we will focus on topics having to do with modality, conditionals, tense, and aspect.

En este curso el estudiante perfeccionará su comunicación oral y escrita mediante el estudio y la discusión de temas relacionados al impacto social y cultural de la ciencia y la tecnología en ciertas sociedades hispanas. Algunos de los temas a tratar son los efectos de los cambios tecnológicos en la estructura familiar y comunitaria, en las relaciones entre los sexos, en la identidad personal y cultural, en el mundo natural y en los sistemas de valores, la religión, la educación y el trabajo. También se examinan y discuten diversas actitudes hacia la innovación tecnológica y científica así como las ramificaciones éticas de las decisiones tecnológicas.

This course is a continuation of 24.951. This semester the course topics of interest include movement, phrase structure, and the architecture of the grammar.

This interdisciplinary course surveys modern European culture to disclose the alignment of literature, opposition, and revolution. Reaching back to the foundational representations of anarchism in nineteenth-century Europe (Kleist, Conrad) the curriculum extends through the literary and media representations of militant organizations in the 1970s and 80s (Italy’s Red Brigade, Germany’s Red Army Faction, and the Real Irish Republican Army). In the middle of the term students will have the opportunity to hear a lecture by Margarethe von Trotta, one of the most important filmmakers who has worked on terrorism. The course concludes with a critical examination of the ways that certain segments of European popular media have returned to the “radical chic” that many perceive to have exhausted itself more than two decades ago.

This course considers films spanning the entire career of pioneering Spanish filmmaker Luis Buñuel (1900–1983), from his silent surrealist classic of 1929, Un perro andaluz, to his last film, Ese oscuro objeto del deseo (1977). We pay special attention to his Mexican period, in exile, and the films he made in, and about, Spain, including his work in documentary. It explores Buñuel’s early friendship with painter Salvador Dalí and poet Federico García Lorca, surrealist aesthetics, the influence of Freud’s ideas on dreams and sexuality, and the director’s corrosive criticism of bourgeois society and the Catholic church. We will focus on historical contexts and relevant film criticism.
About This Course on OpenCourseWare
The instructor of this course, Elizabeth Garrels, is a Professor Emeritus at MIT. She retired in 2014 after 35 years at the Institute. Professor Garrels taught this course for over 15 years, and it evolved over this time period. Normally, a course on OCW represents the version of a course taught during a specific semester and year. However, for this course we hope to represent the evolution of the course during the main years it was taught. The materials you see here are not from a particular iteration of the course, but are drawn from all of the years the course was taught.

In analyzing fiscal issues, conventional public finance approaches focus mainly on taxation and public spending. Policymakers and practitioners rarely explore solutions by examining the fundamental problem: the failure of interested parties to act collectively to internalize the positive externalities generated by public goods. Public finance is merely one of many possible institutional arrangements for assigning the rights and responsibilities to public goods consumption. This system is currently under stress because of the financial crisis. The first part of the class will focus on collective action and its connection with local public finance. The second part will explore alternative institutional arrangements for mediating collective action problems associated with the provision of local public goods.
The objective of the seminar is to broaden the discussion of local public finance by incorporating collective action problems into the discourse. This inclusion aims at exploring alternative institutional arrangements for financing local public services in the face of severe economic downturn. Applications of emerging ideas to the provision of public health, education, and natural resource conservation will be discussed.

This course meets weekly to discuss recent aerospace history and current events, in order to understand how they are responsible for the state of the aerospace industry. With invited subject matter experts participating in nearly every session, students have an opportunity to hone their insight through truly informed discussion. The aim of the course is to prepare junior and senior level students for their first industry experiences.

This course studies the relations of affect to cognition and behavior, feeling to thinking and acting, and values to beliefs and practices. These connections will be considered at the psychological level of organization and in terms of their neurobiological and sociocultural counterparts.

This course instructs students on how to develop technologies that help people measure and communicate emotion, that respectfully read and that intelligently respond to emotion, and have internal mechanisms inspired by the useful roles emotions play.

This course considers how, despite its immense diversity, Africa continues to hold purchase as both a geographical entity and meaningful knowledge category. It examines the relationship between articulations of “Africa” and projects like European imperialism, developments in the biological sciences, African de-colonization and state-building, and the imagining of the planet’s future. Readings in anthropology and history are organized around five themes: space and place, race, representation, self-determination, and time.