(The exact content of the courses will be decided by the course instructor)

ECO 511  Principles of Quantitative Analysis                                              3 Credits

Objectives: To provide a thorough grounding in the methods and strategy of quantitative analysis and to ensure a broad perspective on the diversity of analytical methods.

Topics: Review of linear algebra, calculus, statistics and the philosophical bases of induction, deduction and hypothesis testing.  Survey of techniques of optimization: linear, non-linear, quadratic and integer programming.  Survey of econometric methods: time series, VAR, and limited dependent variable, structural, and panel models. Survey of stochastic processes and applications: queues, inventories, and Markov processes.  Survey of problems in inference and interpretation: Duhem-Quine problem, causality, identification, and model selection. 

Prerequisite: Permission of Instructor

 

ECO 512 Microeconomic Theory and Applications I                                 3 Credits

Objectives: To study advanced microeconomic theory concerning individual decision making, game theory and the analysis of markets together with applications thereof.

Topics: Preference and Choice; Consumer Choice; Classical Demand Theory; Aggregate Demand; Production; Choice under Uncertainty; Non-cooperative Games; Simultaneous – Move Games; Dynamic Games; Competitive Markets; Externalities and Public Goods; Market Power; Adverse Selection, Signalling and Screening; Principal – Agent Problems.

Prerequisite: Permission of Instructor

 

ECO 513 Macroeconomic Theory and Applications                                  3 Credits

Objectives: This course covers various topics in macroeconomics at the graduate level. The course is divided into four broad areas covering macroeconomic growth models, business cycles, consumption-investment-asset pricing and new Keynesian models of imperfection.

Topics: Growth theory: Neoclassical and optimal growth models; Technological progress and human capital. Models of Fluctuation: Basic model business cycle – Consumption and saving choice; RBC models – Labour and leisure choice. Theory of Consumption, Investments and Asset Prices: Alternative theories of consumption; Risk, uncertainty and risk sharing; Asset pricing, arbitrage, state prices CAPM; Investment with adjustment costs and q-theory of investment. Market imperfections and Rigidities: Labour market – Efficiency wage, Implicit contract, Search models; Credit market – Amplifications, persistence, bank-crunch, bubbles; Goods market – Markups, complementarities, adjustment costs.

Prerequisite: Permission of the Instructor

ECO 514 Microeconomic Theory and Applications II                               3 Credits

Objectives: To study the microeconomic theory concerning general equilibrium, uncertainty, intertemporal utility, social choice and mechanism design, and to utilise the theoretical knowledge to gain a deeper understanding of practical economic issues.

Topics: Examples of General Equilibrium Theory; Equilibrium and Basic Welfare Properties; Walrasian Equilibrium and Existence; Core and Equilibria; General Equilibria under Uncertainty: Arrow – Debreu; Intertemporal Utility; Social Choice Theory; Axiomatic Bargaining; Incentives and Mechanism Design.

Prerequisite: ECO512

 

ECO 515 Advanced Econometrics                                                           3 Credits

Objectives: This course aims to equip the students with the advanced tools and techniques in econometric data analysis. The course covers a wide range of topics in econometrics at the graduate level. Proficiency in at least one or more statistical software package such as SAS, RATS, STATA, E-Views and Microfit is expected or required to be acquired. The student must also prepare a term paper or project report using a data set and appropriate software which would demonstrate his/her analytical ability and the extent to which learning goals have been met.

Topics: Review of least squares methods using matrix approach; Small and large sample properties of OLS estimates; Inference and prediction; Alternative functional forms; Model selection criteria; Violation of OLS assumptions and GLS estimation; System of regression equation and simultaneous equation models; Alternative estimation frameworks -  Parametric and Non-parametric estimation, ML estimation, GMM estimation; Elements of Structural Modelling and Time series Analysis; VAR; Unit Roots; Weiner Processes; Deterministic Trends; Variance Ratio Tests; Stochastic Processes, Integrated Variables and Cointegration; Bayesian Analysis of Stochastic Trends; Tests for Structural Change, Regime Switching, Markov Switching, Kalman Filtering, Structural Time Series Models; Limited dependant variables

Prerequisite: ECO511

 

ECO 611 Time Series Analysis and Forecasting                                         3 Credits

Objectives: To provide a thorough review of modern time series econometrics with an emphasis on empirical applications of time series and forecasting techniques in economics and finance. The contents of the course builds upon the time series related topics covered in ECO 505. A term paper / empirical project report is required.

Topics: Univariate Time Series Models and their Applications: ARMA, ARIMA, ARCH, GARCH and ACD processes; Spectral Analysis and Filtering; Multivariate Linear Time Series Models and Stationary Vector Autoregressions: VAR models, Forecasting from VAR models, Structural VAR, Bayesian VAR, Bootstrapping; Unit-Roots and Co-integrated Processes; Introduction to Linear and Non-Linear State Space Models

Prerequisite: ECO515

 

ECO 612 Models of Qualitative Choice                                                       3 Credits

Objectives: A broad and in-depth study of the econometric analysis of single-equation and simultaneous-equation models in which the jointly dependent variables can be continuous, categorical or truncated as opposed to continuous. A term paper / empirical project report is required.

Topics: Discrete Regression Models; Probabilistic Choice Models: Logit, Probit, Tobit; Discriminant Analysis; Multivariate Qualitative Variables; Censored and Truncated Regression Models; Self-Selection Models; Maximum Likelihood Models.

Prerequisite: ECO515

 

ECO 613 Econometric Analysis of Panel Data                                           3 Credits

Objectives: An in-depth study of up to up to date Panel Data techniques for use in quantitative and qualitative analyses of economic and socio-economic situations. A term paper / empirical project report is required.

Topics: One-Way and Two-Way Error Component Regression Models; Tests of Hypotheses with Panel Data; Heteroskedasticity and Serial Correlation in Error Component Models; SUR Models with Error Components; Simultaneous Equations with Error Components; Dynamic and Unbalanced Panel Data Models; Limited Dependent Variables and Panel Data; Non-Stationary Panels

Prerequisite: ECO515

 

ECO 614 Topics in Econometric Analysis                                                   3 Credits

Objectives: To cover recent developments and applications in econometric analysis.

Topics: Will depend on the expertise of the instructor and interest of the students.

Suggested Texts and References: To be decided as per topics covered.

Prerequisite: ECO515 and permission of the instructor

 

ECO 621 Corporate Finance and Economic Analysis                                3 Credits

Objectives: To provide an introduction to the theory and practical applications of modern Corporate Finance within the broader purview of the macro-economy.

Topics: Overview of Financial Markets, Financial Markets and the Economy at large, Risk and Hurdle Rates, Measuring Returns, Optimal Financing Mix, Appropriate Debt, Return to Ownership, Cash Returns, Valuation and Financial Decision Making

Prerequisites: ECO511

  

ECO 622 Capital Markets and Investment Strategy                                  3 Credits

Objectives: To provide a theoretical and practical background in the field of investments and its relationship to capital markets.

Topics: The Investment Environment; Optimal Risky Portfolios; Equilibrium in Capital Markets; Arbitrage Pricing Theory; Empirical Evidence on Security Returns; Mutual Funds and Other Investment Companies; Portfolio Performance Evaluation; Bond Prices and Yields; Term Structure of Interest Rates; Managing Bond Portfolios; Fixed-Income Derivatives; Options Markets; Option Valuation, Futures Markets.

Prerequisite: ECO621

 

ECO 623 Asset Pricing and Financial Derivatives                                     3 Credits

Objectives: An introduction to the pricing of Assets. Coverage of the mathematical methods used to derive pricing formulae including those of options and other derivatives.

Topics: Introduction to Various Derivatives; Present Value; Risk Aversion; Arbitrage; Forward and Futures Prices; Hedging using Futures; Interest Rates, Basics of Options and Trading Strategies; Binomial Trees; Elements of Asset Pricing (Stochastic Differentiation, Weiner and Poisson processes, Ito’s Lemma); Black-Scholes; Implied Volatility; Hedging; Capital Asset Pricing Model and Portfolio Management; Value-at-Risk; Estimating Volatilities and Correlations; Credit Risk, Real Options and Insurance; Weather and Energy Derivatives.

Prerequisites: ECO622.

 

ECO624 Risk, Uncertainty and Insurance                                                     3 Credits

Objectives: An introduction to the analysis of uncertainty, insurance markets and the management of risk including decision making under uncertainty, Pareto-optimal risk allocation, equilibrium analysis of risk exchange and informational asymmetries.

Topics: Choice under uncertainty; Expected Utility Theory; Risk Aversion; Change in Risk; Insurance Demand; Single Risk; Multiple Risks; Calculus of Variations and Optimal Control Theory; Optimal Risk Sharing; Pareto Optimal Allocations; Equilibrium Analysis; Asymmetric Information; Moral Hazard; Adverse Selection; Theory of Risk Classification; Economic Analysis of Insurance Fraud; Organisational Forms within the Insurance Industry; Insurance Capacity and Cycles; Corporate Risk Management.

Prerequisites: ECO511, ECO512, ECO514

 

ECO 625 Managerial Economics                                                                  3 Credits

Objectives: This course is designed to provide students with a sound understanding of how various economic concepts and economic tools are used in managerial decision- making. The intent is to integrate theory and application. Topics to be covered in the course include demand analysis and estimation, production theory and cost analysis, market structure, pricing techniques, and risk analysis.

Topics: Market Forces , Demand and Consumer Behaviour, Production Analysis and Costs, Market Structure and Competition, Pricing Strategies, Risk Analysis, Moral Hazard, Incentives and Mechanism Design, Interface of Government and Business.

Prerequisites: ECO511, ECO512

 

ECO 626 Topics in Financial Economics                                                     3 Credits

Objectives: The course is designed to cover various recent developments and advanced topics in applied financial economics.

Topics: Variable

Recommended Texts and References: Variable

Prerequisite: ECO621 and permission of the instructor.

 

ECO 631 Public Economics                                                                          3 Credits

Objectives:  To examine contemporary theories, techniques, and issues in public economics. 

Topics: The state in economic theory. Public, private and club goods; externalities; market failure and government failure.  Public expenditure analysis, redistribution and social insurance programs; State-owned enterprises: privatization, regulation and Ramsey pricing, Fiscal theory and practice; optimal taxation; tax evasion and household production general equilibrium simulation.

Prerequisites: ECO511, ECO512, ECO514

 

ECO 632 Project Appraisal and Management                                            3 Credits

Objectives: To gain experience in the application of project and investment analysis methods.  To examine the economic theory underlying project analysis.

Topics: Review of welfare economics; Multiple objectives and value metrics; valuation of intangibles; external and indirect effects; Discounting in theory and practice; The theory of distortions and shadow pricing; scale problems: fixed and endogenous prices; Risk analysis; Sensitivity analysis; Finance and capital budgeting problems; Public sector projects: transportation and road projects; accounting and transparency; Environmental and regional impacts; problems with multiplier analysis

Prerequisite: ECO631

 

ECO 633 Resource and Environmental Economics                                   3 Credits

Objectives: The course introduces the analytical and policy challenges posed by natural resources and environmental externalities and surveys classic and contemporary approaches to measurement and analysis. 

Topics: Resource economics concerns the market structure, pricing, and inter-temporal use of natural resources (renewable and nonrenewable); Regulatory and institutional means for managing resources; evaluation of incentive-based and command-based approaches; mechanism design for common property governance. Option value and existence value problems.  Environmental economics concerns amenities and disamenities not traded in markets or that are jointly produced or consumed with other goods.  The course examines mechanisms for improving the allocation of environmental amenities—Pigovian taxes, regulation, tradable permits—and methods of valuing them—contingent valuation, hedonics, and other indirect market-based measures.  Finally, international treaties and cross-border resource and environmental issues are surveyed.

Prerequisite: ECO632

 

ECO 634 Trade Policies and Development                                                 3 Credits

Objectives: The analysis of trade policies, trade agreements, bi-lateral and multi-lateral trade negotiations and the resolution of trade disputes.  The course links recent advances in trade theory to contemporary issues in trade and development policies. Issues in international finance, especially the transmission of international financial crises and the role and capacity of international financial institutions such as the IMF or BIS to manage or limit such crises will also be examined.

Topics: Survey of recent advances in the trade theory: new approaches to comparative advantage, market structure, factor measurement, factor productivity and total factor productivity; the problem of factor and product price equalization; geography and agglomeration economics; knowledge, human capital and endogenous growth. Case studies of selected WTO issues — negotiations and disputes and, if relevant, SAFTA/SAARC issues, international movements of financial capital; origin, transmission, impact and resolution of recent financial crises and the role of international financial institutions.

Prerequisites: ECO512, ECO514

 

ECO 635 Economic Development Policies in Bangladesh                         3 Credits

Objectives: An in-depth examination of the Bangladeshi development experience.

Topics: Sectoral Development and Sectoral Analysis in a General Equilibrium Framework; Agriculture, Industry and Service Sectors of Bangladesh; Foreign Trade, Foreign Aid and FDI; Financial Institutions, Monetary Management and Fiscal Policy; Technology and Human Resource Development; Role of NGOs; Long Term Economic Prospects.

Prerequisite: ECO631

 

ECO 636 Topics in Economic Policy Analysis                                              3 Credits

Objectives: to examine, in depth and empirically, specific policy issues with an emphasis on the application of analytical methods.

Topics: The specific content of the course will depend on the expertise of the instructor and the interests of students. 

Prerequisites: ECO631, ECO632 and permission of the instructor.