The 10th Jerusalem Summer School in Economic Theory on
The Economics of Finance

June 12 - 23, 2000. Jerusalem.

Director: Kenneth J. Arrow
Co-Director: Eyal Winter


Virtually all business firms require the raising of capital from outside sources to finance investments, short-term and long-term. Lenders on the other hand want flexibility, in particular, the ability to turn the investments into cash to buy goods or make other investments. This creates the need for markets for securities, to achieve liquidity. Since risks are inevitable in business and since lenders and borrowers have different information on risks, the analysis of finance inevitably draws on the economic theories of risk-bearing and of asymetric information. These basic principles applied to the world of finance have given rise to very rich and complex theories of individual behaviour and of market equilibrium. More than in any other field of economics, the theories in turn have had profound effect on the workings of the markets, in particular, the development of new kinds of securities.


The School is intended for advanced graduate and post-doctoral students. Registration Fee: $290. Hotel accommodation: $440. Scholarships covering substantial portions of travel an accommodation are available to qualified candidates. Candidates must send a C.V., an abstract of research interests and a letter of recommendation. For application forms write to:

The Jerusalem Summer School in Economic Theory
The Institute for Advanced Studies
The Hebrew University of Jerusalem
Givat Ram, Jerusalem 91904, Israel.

Fax: 972-2-6523429
Website address:

Application deadline: 5th May, 2000.

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