ECON7200 – Semester 1, 2022
Essay
Deadline: Monday 9 May 2022 16:00
Write an essay between 800 and 1200 words (excluding references), consisting of three tasks:
1. Read and summarize “Speculative Asset Prices” (Prize Lecture, on December 8, 2013 by Robert J.
Shiller).
(Source: https://www.nobelprize.org/uploads/2018/06/shiller-lecture.pdf)

2. Explain the efficient market hypothesis (EMH), behavioral finance, and their relevance in explaining asset
price bubbles.

3. In the end of the article, Shiller concluded with the statement:
“Changes in our financial institutions that take the form of creative reinventions in the kinds of
risks traded, that change the psychological framing of the things traded, that change our social
relations with business partners and adversaries, can make financial markets less vulnerable to
excesses and crashes and more effective in helping us achieve our ultimate goals.”
Explain how he reached this view and discuss your view on this statement.

General Guideline: The essay should start with the introduction, main body and the conclusion. Make sure
that in your essay, all the three tasks are carried out.

Criteria and Marking:
The total mark for this assignment is 30, which consists of the following criteria:
• Article summary (4 marks)
• EMH and behavioral finance (6 marks)
• Discuss the author’s view (10 marks)
• Writing Quality (5 marks)
• Presentation (1 mark)
• Reference (4 marks)
In the Writing Quality criterion, your writing style, essay flow and grammar/spelling will be examined. The
Presentation criterion includes various details such as document format, identification and compliance of word
limit. In addition, there are some general points to consider:
• Your essay must have a cover page detailing your ID and word count.
• Remember to give a total word count (excluding references) on the cover page.
• You cannot use any bullet points in explanation or summary.
• Any reference style is allowed, but it must be consistent (i.e. same style throughout the essay).
• You cannot cite Wikipedia or Investopedia.
• If graphs/figures are used, remember to quote the source.
• Use academic writing style and not creative writing style.
• Do not plagiarize! It will be dealt with very seriously in UQ and is simply not worth trying.

Submission:
Each student should submit a Word or PDF file through the Turnitin link on the Blackboard course website.
Submission through email will not be accepted. All submissions will be run through the Turnitin anti-plagiarism
software.