I'm studying behavioral economics right now. One of the central "theorems" of behavioral economics is that human behavior is never rational. That's what I love so much about the topic.
But there's an opposite lying here - it's related to the "tell the truth to idiots and it just makes them stupider" axiom - the more we try to impose reason, the more unreasonable the cases become.
most M.B.A. students at Sloan and other top business schools do not have the technical background to implement models such as Li’s (2009) Gaussian copula formula for ABSs and CDOs, nor does the standard M.B.A. curriculum include courses that cover such models in any depth. Such material—which requires advanced training in arcane subjects such as stochastic processes, stochastic calculus, and partial differential equations—is usually geared towards Ph.D. students.
... funding for finance Ph.D. students might be raised by imposing a small surcharge on certain types of derivatives contracts, e.g., those that are particularly complex or illiquid and, therefore, contribute to systemic risk. This surcharge may be viewed as a means of correcting some of the externalities associated with the impact of derivatives on systemic risk. A minuscule surcharge on, say, credit default swaps, could support enough finance Ph.D. students at every major university to have a noticeable and permanent impact on the level of financial expertise in both industry and government.
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