Doctoral degree programs in general have three components. The first is advanced coursework in the field, which generally requires two years. This is designed to arm the student with knowledge and critical-thinking tools to undertake original research in the field, which is the second component of a doctoral program, and generally takes three years. The research component culminates in the writing and defense of a dissertation, which is the third component of a doctorate. A dissertation is a document that reports on the candidate's research and adds to the body of knowledge in the field.
Conventional market theory rests on two innate assumptions: that financial markets are inherently efficient and that investors are collectively rational in their behavior. Neither of these assumptions is universally true, and the exceptions lead to anomalies in the behavior of markets. Behavioral finance studies the impact and interaction of factors such as investors' rules of thumb, cultural prejudice, group behavior and localized or temporary market inefficiencies.
A Ph.D.'s two years of classroom instruction will include courses in microeconomics and macroeconomics, as well as econometrics and courses relevant to the chosen area of specialization. Doctoral students with a specific interest choose a school where mentoring and guidance are available from faculty performing research in that area. At schools with strong programs, such as UCLA's Anderson School of Business and New York University's Stern School of Business, faculty are often among the leaders in the field.
Even within the world of economists, specialists in behavioral finance occupy a rarefied position. Their contributions to the understanding of market behavior have wide-reaching implications for the field as a whole, and indirectly affect the lifestyles of millions of people. A Ph.D. in behavioral finance may lead to a career in academia, performing pure research and educating the next generation in the discipline. Graduates may also find work with the federal government, investment banks or major brokerage firms. Some NGOs and international agencies also require the services of behavioral finance experts.