Economics and Finance (ECON/FIN)

Professor Kudret Topyan,
Chair of the Department

The Department of Economics and Finance offers a broad choice of courses and two distinct majors: Economics and Finance. The aims of the department are (1) to prepare students for careers in industry, government, not-for-profit organizations, or economic research; (2) to provide an intellectual and professional basis for informed participation in contemporary society; (3) to direct the development of competent and well-disciplined students to undertake graduate studies in Economics and Finance. Prospective graduate students are advised to take the appropriate examinations (GRE, GMAT, or LSAT).

Every major in the department must consult with the Chair concerning the fulfillment of the requirements for the major and the electives that will be most suitable for his/her particular professional and academic development. Students planning to pursue graduate studies in economics or finance are strongly advised to develop a strong concentration in mathematics.

Requirements for a major in Economics: In Arts and in Science, students must take ECON 201, 202, 301, 302, 334, and 433. A three credit course in business statistics or an approved substitute is also required. MATH 105 and 106 are strongly recommended. In Business, students must take ECON 301, 302, 334, and 433, plus three additional credits in Economics over and above the core courses required of all students in Business. A minimum grade of C is necessary to receive major credit.

Requirements for a minor in Economics: In Arts and in Science, students must complete the following fifteen credits: ECON 201, 202, 334, and six credits of Economics electives approved by the Department Chair. In Business, students must take ECON 301 and 302 in addition to the core courses required of all students.

Requirements for a major in Finance: The major in Finance is available to students in Business only. Students must take FIN 302, 308, 420, 436, and three credits from the following: FIN 320, 408, 416, 440, 441 and 442. A minimum grade of C is necessary to receive major credit. Finance majors also have to take the core courses offered by the Department and required of all students in Business.

Requirements for a minor in Finance: In Arts and in Science, students must complete the following fifteen credits: ACCT 201, ECON 305, FIN 301, 308, and 436. In Business, students must complete FIN 302, 308 and 420, in addition to the core courses required of all students in Business.

Economics (ECON)

General Courses

201. Principles and Policies I: Macroeconomics. An introductory study of the determination of the level of production and the price level in the macroeconomy. Topics covered include inflation and unemployment, money and banks, federal budget and national debt, monetary and fiscal policy, economic growth and development, and exchange rates and international finance.  (Cr.3)

202. Principles and Policies II: Microeconomics. An introductory study of the behavior of households and business firms in the marketplace, including households as consumers and resource suppliers, business firms as producers of goods and services and buyers of resources, market structures for outputs and inputs, role of the government, and free trade vs. protection. (Cr.3)

227. Business Statistics. Applications of statistical methods of data analysis and decision making. Coverage includes: descriptive statistics, statistical measures and estimation, testing of hypotheses, linear regression and correlation analysis. Use of computer software for statistical analysis and business applications. Prerequisites: MATH 105 or 106. (Cr.3)

301. Intermediate Price Analysis. Market and factor pricing under pure competition, imperfect competition conditions and monopoly; the pricing process and the allocation of resources. Prerequisites: ECON 201, 202, 227. (Cr.3)

302. Intermediate Macroeconomics. The nature and causes of unemployment and inflation and the debate over the policies used to fight these problems in a global economy. Prerequisites: ECON 201, 202, 227. (Cr.3)

305. Money and Banking. This course considers the nature of money, the markets that allocate money to a variety of uses, the institutions that create and control the money stock, the flow of money and how it is related to employment levels, GDP, inflation and interest rates, and international financial matters. Much attention will be paid to problems and issues requiring the attention of policymakers. Prerequisites: ECON 201, 202. (Cr.3)

Special Area Courses/Electives

International

334. International Economics. A study of international trade and financial relationships. Topics covered include theory of international trade, public and private barriers to trade, commercial policy of the U.S., regional economic integration, foreign exchange markets, balance of payments, disequilibrium and the adjustment process, international monetary systems, and economic development of the developing nations. Prerequisites: ECON 201, 202, and by permission of instructor. (Cr.3)

335. Political Economy. This course deals with determinants of economic growth and development from a global perspective. The political and legal environment will be given attention alongside economic factors. Issues facing transitional and developing economies will be given special focus. Prerequisites: ECON 201, 202. (Cr.3)

421. The Japanese Economy. An interdisciplinary study of the important features of the Japanese economy including culture, management, economic organization, distinctive institutions and industrial policy; how these compare to the U.S., and how these have contributed to Japan’s economic success. The course also considers Japan’s evolving economic relationship with the U.S. and why Japan’s economic performance has deteriorated in recent years. Prerequisites: ECON 201, 202.  (Cr.3)

Quantitative

433. Econometrics. A systematic attempt of setting theoretical hypotheses about economic reality against empirical evidence produced by real-world situations and problems. Emphasis is on the process and application of statistical inference through the use of various distributions and on the estimation and measurement of relationships among economic variables. Prerequisites: ECON 201, 202 and 227 or its equivalent. (Cr.3)

Other

332. Environmental Economics. An analysis of the relationship between social behavior, environmental degradation, economic principles and public policy. Topics include pollution, extinction, sustainability, population growth, global warming, acid deposition, hazardous waste, poverty, and health. This course also considers the viability and success of public policies designed to alleviate the environmental problems. Prerequisites: ECON 201, 202. (Cr.3)

333. Public Finance. A study of why a government role in the economy is needed and how it ought to be financed. It considers the nature of different types of government programs involving expenditures and the types of taxes used to raise revenues. It is concerned with the impact of government on the efficiency and equity of market outcomes. Prerequisites: ECON 201, 202, 227.  (Cr.3)

405. Labor Economics. A study of the labor market, employment and wage determination; theories that explain wage differentials and unemployment; and alternative policies that can reduce labor market problems. Prerequisites: ECON 201, 202, 227 or by permission of instructor. (Cr.3)

422. History of Economic Thought. A historical and analytical perspective on the developments of economic ideas and the major schools of thought. Special attention will be given to important economic thinkers such as Adam Smith, John Stuart Mill, Karl Marx and Alfred Marshall. The purpose is to understand why economics is what it is today. Prerequisites: ECON 201, 202.  (Cr.3)

441. Economics Seminar. A program of supervised research and reading related to a theme or topic of economics. Open to a limited number of students majoring in economics or finance who meet the departmental requirements and have the approval of the Chair of the Department. Open to economics and finance majors only. (Cr.3)

470. Economics Tutorial/ Independent Study. A single-semester tutorial course, related to a particular topic of economics, directed by a faculty member from the department. Open to qualified students who meet the departmental requirements and have the approval of the Department Chair and the Dean. (Cr.3)

471. Economics Thesis Project I. An in-depth program of research, under the direction of a member of the department (mentor), leading to a comprehensive research proposal which includes a topic, a review of the literature, the research methodology, sources of data and potential results. Open to qualified students who meet the departmental requirements and have the approval of the Department Chair and the Dean. (Cr.3)

472. Economics Thesis Project II. An in-depth program of research, under the direction of a member of the department (mentor), leading to a completion of the research project proposed in ECON 471 Thesis Project I. A defense of the thesis is required. Prerequisite: ECON 471 Thesis Project I. (Cr.3)

Finance (FIN)

301. Principles of Business Finance I. An overview of modern finance concepts and a survey of fundamental issues. Topics include basic finance terminology, time value of money, basic financial statement analysis, the structure and functions of financial markets and institutions, bond and stock valuation, and elementary capital budgeting. Prerequisites: ECON 201, ECON 227, ACCT 201.

302. Principles of Business Finance II. Building upon the tools in FIN 301, a survey of the firm’s basic financial decision-making tools and strategic considerations. Topics include working capital management, various capital budgeting techniques, cost of capital, risk and return, and basics of the foreign exchange and forward markets. Prerequisite: FIN 301. (Cr.3)

308. Investments. An introduction to the markets and instruments in investments including equity and debt securities, mutual funds, and basic derivatives including options and futures contracts as well as the principles governing the selection and management of portfolios of financial assets. Prerequisites: ECON 201, 202, FIN 301. (Cr.3)

320. Financial Statement Analysis. This course covers financial statement analysis for security valuation. It discusses the investment environment and the use of financial statements in valuation models, analyzes information contained in the four financial statements and provides guidelines for forecasting future financial statements for valuation. Prerequisites: ACCT 201, 202 and FIN 301. (Cr.3)

408. Financial Intermediaries. This course provides an understanding of the operation of commercial banks, thrifts, insurance companies, investment banks, brokers, investment companies, credit unions and pension funds. Attention will be given to current trends and policy issues in the financial services industry. Prerequisites: ECON 305 and FIN 301. (Cr.3)

416. Options and Futures Markets. Analysis of the nature and use of derivative securities in general, and options, futures, and swap contracts in particular. Topics include market institutions and trading practices, valuation models, and hedging and risk management techniques. Prerequisites: ECON 305, FIN 301, FIN 308. (Cr.3)

420. Corporate Structure and Financing. A survey of the different types of capital structures and the various ways they are financed. Topics include strategic decisions concerning financial leverage, the corporation’s attempts to maximize its value, dividend policies, leasing, raising of debt and equity, refunding operations, investment banking techniques, mergers and acquisitions, and bankruptcy. Prerequisites: FIN 301, 302. (Cr.3)

436. Multinational Finance. An exploration and analysis of the behavior of multinational firms. Topics covered include the nature and mechanics of the foreign exchange market, impact and management of foreign exchange risk, foreign project evaluation, direct and portfolio investments, accounting exposures, balance of payments and trade accounts, and the legal and political risks and constraints surrounding multinational corporations. Prerequisite: FIN 301, FIN 302. (Cr.3)

440. Advanced Topics in Finance. Select treatment of current topics in finance including financial engineering, behavior of the financial markets, the crises among financial institutions, changing financial environment, and the development of new financial products by non-banks and securities firms. Prerequisites: ECON 305, FIN 301, 302, 308. (Cr.3)

441. Finance Seminar. A program of supervised research and reading related to a theme or topic of finance. Open to a limited number of students majoring in economics or finance who meet the departmental requirements and have the approval of the Chair of the Department. Open to economics and finance majors only. (Cr.3)

442. Financial Modeling. This course provides an understanding of the statistical analysis and financial modeling in the fields of investment and computational finance. Topics include regression analysis, constrained and unconstrained optimization, Capital Asset Pricing Model, and models assessing efficiency in the foreign exchange market. Prerequisites: FIN 301, 302, ECON 227. (Cr.3)

470. Finance Tutorial/Independent Study. A single-semester tutorial course, related to a particular topic of finance, directed by a faculty member from the department. Open to qualified students who meet the departmental requirements and have the approval of the Department Chair and the Dean. (Cr.3)

471. Finance Thesis Project I. An in-depth program of research, under the direction of a member of the department (mentor), leading to a comprehensive research proposal which includes a topic, a review of the literature, the research methodology, sources of data and potential results. Open to qualified students who meet the departmental requirements and have the approval of the Department Chair and the Dean. (Cr.3)

472. Finance Thesis Project II. An in-depth program of research, under the direction of a member of the department (mentor), leading to a completion of the research project proposed in FIN 471 Thesis Project I. A public defense of the thesis is required. Prerequisite FIN 471 Thesis Project I. (Cr.3)