Course Descriptions

Nature of regression analysis. Two variable regression analysis. Ordinary least squares method. Standard errors of least-square estimates. Interval estimation model and hypothesis testing. Correlation. Multiple regression analysis. Forecasting via standard deviations. Problems and issues in estimation of regression coefficient parameters. Partial regression and correlation.

Introduction to game theory. Basic definitions and concepts. Dominant strategy. Nash equilibrium. Cooperation and coordination. Static games in perfect information. Dynamic games in perfect information. Static games in imperfect information. Dynamic games in imperfect information. Repeating games. Economic contracts. Stable macroeconomic policy and Coase theorem. Cournot and Bertrand duopoly. Strategic trade policy. Limit pricing. Cartel.

The importance of international economics. Modern international trade theory. Application of macroeconomic and microeconomic analysis to international trade. International trade and national income. International trade and economic growth. Balance of payments analysis, foreign exchange markets and exchange rates. Trade policies. Trade barriers and liberalization of trade. International factor mobility and multinational companies. International monetary system.

The economic role of government. Social goods and market failure. Public provision for social goods. Efficient provision of social goods. Fiscal instruments of distribution policy. Budget process and budget program. Public expenditures: structure and growth. Public budgets and efficiency: expenditure evaluation principles. Principles of taxation. Taxation and equity. Principles of tax incidence and general equilibrium. Personal income tax and taxable income. Corporate income tax and tax base. Consumption and sales taxes. Value added taxation. Property and wealth taxes. Turkish taxation system. Fiscal policy and stabilization. Policy mix and crowding-out. Fiscal stabilization in the open economy. Economics of the public debt.

Principles of economic model construction and the econometric techniques used in estimation of behaviorial relationships. Econometric description and inference. Statistics for cross-section samples. Probability. Discrete and continious probability distributions. Random variables. Estimators and sampling distributions. Confidence intervals and tests of hypotheses. Simple linear regression for normal and non-normal populations.

Actors of financial sectors. Central Banks and Federal Reserve System. Commercial banks. Bank and non-bank financial institutions. Theories of money. Analysis of money supply and demand. Definition and calculation of money supply. Reserve money. Monetary base and central bank money. Calculation of money stock. Money demand. Theories of money demand. Money market equilibrium. Interest rates formation. Interest rate and financial analysis. Money and income. Monetary transmission mechanism.

Designing growth models for a small open economy. Theories of economic growth and development. Labor supply and population dynamics in growth models. Incorporating income distribution into growth models. The diffusion of technology in growth models. Location and economic growth. Planning strategies. Trade and planning models. Stable and unstable growth. Post World War II growth. The relevance of growth theories for economies in transition. Survey of classical and contemporary theories of development. Development theories. Different models of development. Major problems of economic development and structural change.

Analysis of the links between economic issues and politics. Meaning of globalization. Technological advancement and globalization. Challanges and opportunities of globalization for countries, firms and supra-national organizations. Costs and benefits of globalization. The challanging role of nation states in a global world. Global trade and multinational investments. Regionalism and globalization. Sustainability as a global issue. Turkey and globalization.

The intersection of politics and economics. Political and market solutions to collective problems. The politics of economic crises. Corporations and labor in the political economy. Regulation. Monetary policy. Fiscal policy. Current and recent real-world macroeconomics events and conditions.

Research methods in economics. Literature review. Reporting.