The field of finance covers the economics of claims on resources. Financial economists study the valuation of these claims, the markets in which they are traded, and their use by individuals, corporations, and society at large.
At Stanford GSB, finance faculty and doctoral students study a wide spectrum of topics, including the pricing and valuation of assets, the financial decision-making of households, firms and financial intermediaries, the structure of the financial system, the determinants and consequences of the flow of capital within and across borders, and the impact of financial markets on the real economy. The research areas intersect with macroeconomics, behavioral economics, labor economics, international trade, industrial organization, economic theory, and economic history, among others subject areas.
Investigation of issues arising in these areas is pursued both through the development of theoretical models and through the empirical estimation and testing of those models. The PhD Program is designed to give students a strong understanding of the methods used in theoretical modeling and econometrics.
Preparation and Qualifications
All students are required to have, or to obtain during their first year, mathematical skills at the level of one year of calculus and one course each in linear algebra and matrix theory, theory of probability, and statistical inference.
Students are expected to have familiarity with programming and data analysis using tools and software such as MATLAB, Stata, R, Python, or Julia, or to correct any deficiencies before enrolling at Stanford.
The PhD program in finance involves a great deal of very hard work, and there is keen competition for admission. For both these reasons, the faculty is selective in offering admission. Prospective applicants must have an aptitude for quantitative work and be at ease with handling formal modeling. A strong background in economics and college-level mathematics is desirable.
It is particularly important to realize that a PhD in finance is not a higher-level MBA, but an advanced, academically oriented degree in financial economics, taking a reflective and analytical, rather than operational, viewpoint.