EC 101 PRINCIPLES OF MICROECONOMICS (3)

Nature, scope and methods of economics; a general view of the price system; consumer behavior; theory of the firm; illustrations and applications from the Turkish economy.

EC 102 PRINCIPLES OF MACROECONOMICS (3)

National income and its determination; changes in national income, elements of public finance, money and banking, international trade, macroeconomic policy, economic growth and development; illustrations and applications from the Turkish economy.

EC 103 ORIENTATION TO ECONOMICS (1)

A short history of economics, its development, its present status, and its contribution to other social sciences; issues pertaining to positive versus normative economics, macro- versus micro-economics.

EC 203 MICROECONOMICS I (3)

Consumer theory, budget constraint, utility maximization, individual demand, income and substitution effects; market demand; firm theory, profit maximization, cost minimization; firm supply; market supply; general equilibrium; consumer and producer surplus; Walrasian equilibrium; efficiency and equilibrium; welfare theorems; monopoly; market failures. Prerequisites: EC 101.

EC 205 MACROECONOMICS I (3)

Classical and monetarist economic theories; exogenous economic growth models; economic fluctuations and Keynesian short-run economic models; the Lucas critique and theory of rational expectations; life-cycle permanent income hypothesis and the real business cycle theory. Prerequisites: EC 102.

EC 206 MICROECONOMICS II (3)

Public goods; externalities; inefficiency in monopoly; price discrimination; policy, regulation and role of government; oligopoly. Static games under complete information: dominated strategies, Nash equilibrium. Dynamic games: backward induction; subgame perfect equilibrium; repeated games. Information economics: decision under uncertainty; adverse selection; moral hazard. Prerequisites: EC 203.

EC 208 MACROECONOMICS II (3)

Open economy macroeconomics: exchange rate regimes; Mundell-Fleming and Dornbush models; monetary, fiscal and exchange rate policies; foreign exchange markets; international trade and finance in small open economies. Global imbalances; currency crisis; twin-deficits; balance of payments adjustments; domestic and foreign savings and economic growth in open economies. Prerequisites: EC 205.

EC 213 EVOLUTION OF ECONOMIES & ECONOMICS (3)

A review of evolution of economic institutions in history; development of economic thinking in the context of changing economic environment; alternative paradigms for analyzing economic issues and policies. Prerequisites: EC 101, 102.

EC 223 MATHEMATICS FOR ECONOMISTS (3)

Matrix algebra; identification and solution of system of equations; fundamental logic; set theory; functions; limits, continuity and differentiability; univariate-multivariate calculus; (un)constrained static optimization; Lagrange theorem; Kuhn-Tucker theorem; difference equations; differential equations; phase diagrams; dynamic optimization. Economic applications. Prerequisites: EC 101, EC 102, MATH 101, and MATH 102.

EC 231 STATISTICS I (3)

Presentation and interpretation of data; basic probability theory; theoretical distributions; problems of estimation and tests of hypotheses.

EC 232 STATISTICS II (3)

Simple regression and correlation; multiple regression and correlation; selected topics in regression analysis; index numbers; time-series analysis.

EC 233 MATHEMATICAL STATISTICS I (3)

Introduction to statistics; data presentation with graphical and numerical methods; probability theory; conditional probability; discrete and continuous random variables and their probability distributions; multivariate probability distributions. Data applications. Prerequisites: MATH 101.

EC 234 MATHEMATICAL STATISTICS II (3)

Elements of statistical analysis; sampling distributions and the central limit theorem; statistical inference including estimation and tests of hypotheses. Data applications. Prerequisite: EC 233.

EC 301 ECONOMICS OF INDUSTRIAL ORGANIZATION (3)

Review of firm theory; economies and scale; monopoly and market power; durable good monopoly; price discrimination; nonlinear pricing; twopart tariff; bundling and tying; Dixit’s entry deterrence model; theories of competition; oligopoly; monopolistic competition; product differentiation; Hotelling’s location model; mergers; collusions; price competition under demand shocks; quality signaling; technological progress; R&D and patents. Industry case studies. Prerequisites: EC 206.

EC 304 GAME THEORY (3)

Dominance, iterated elimination of dominated strategies; best response and Nash equilibrium; rationalizability; undominated Nash equilibrium; mixed strategy Nash equilibrium; Bayesian Nash equilibrium; backward induction; subgame perfect Nash equilibrium; perfect Bayesian equilibrium; signaling games; repeated games; other refinements. Applications: auctions; bargaining; voting. Prerequisites: EC 206.

EC 305 URBAN ECONOMICS (3)

Economic analysis as applied to urban problems and policy; the need for cities; urban spatial structure; urban transportation; housing; local public goods. Prerequisites: EC 203.

EC 306 ADVANCED MICROECONOMICS (3)

Information economics: strategic interaction under asymmetric information; moral hazard (hidden action); adverse selection (hidden information). Selected applications: principal-agent models, bargaining, auctions, insurance markets, labor markets, herd behavior, voting. Experimental economics; behavioral economics. Prerequisites: EC 206, EC 223.

EC 308 ADVANCED MACROECONOMICS (3)

Dynamic models in macroeconomics; calculus of variations; optimal control and dynamic programming methods; general equilibrium theory; applications in economic growth; real business cycles and political economy. Prerequisites: EC 205, EC 223.

EC 310 ECONOMIC HISTORY OF EUROPE (3)

Introduction to the economy history of Europe; a survey of economic and social characteristics of different periods; Medieval, Early Modern and Modern Periods; factors driving economic and social change.  Prerequisites: EC 101, 102.

EC 311 ECONOMIC HISTORY OF THE OTTOMAN EMPIRE (3)

Introduction to Ottoman economic history; review of evidence on different periods of the Ottoman  history; institutions and institutional change; causes of economic stagnation; comparative analysis with other regions of the world. Prerequisites: EC 101, 102.

EC 312 COMPARATIVE SCHOOLS OF THOUGHT IN ECONOMICS (3)

The subject matter and methodological standpoint of leading traditions of economic thought: Neoclassical, Keynesian, Post Keynesian, Chicago, Austrian, Institutional, Marxian, Feminist and Radical. Prerequisites: EC 203, 205.

EC 314 ECONOMIC METHODOLOGY AND PHILOSOPHY OF ECONOMICS (3)

Economics as a science; methodologies of and epistemologies in economics; logical positivism, falsificationism, research programs, scientific paradigms and epistemological anarchism; methodological debates and innovations in economics. Prerequisites: EC 101, EC 102.

EC 315 ECONOMIC HISTORY OF TURKEY (3)

The economic and social history of the 19th and 20th century Turkey; economic policy in different periods; changing social coalitions and conflict; economic growth and distribution over time; interaction with the outside world. Prerequisites: EC 101, 102.

EC 317 GENDER AND THE ECONOMY (3)

Understanding of gender roles in the household, the labor market, and the firm; feminist economic critique of mainstream economics and alternatives; gender division of labor; paid and unpaid work; occupational segregation and discrimination; economic and social policies altering or reinforcing prevailing gender roles. Prerequisites: EC 101, 102.

EC 321 MATHEMATICAL ECONOMICS I (3)

Preference and utility; individual and collective choice; elements of game theory; various solution concepts, the existence and various properties of solutions; applications of game theory in comparing economic systems. Prerequisites: EC 203, 205, 225.

EC 322 MATHEMATICAL ECONOMICS II (3)

Continuation of EC 321. Prerequisites: EC 203, 205, 225.

EC 331 ECONOMETRICS (3)

Classical least squares analysis; properties of least squares estimators; statistical inference in simple and multiple regression; misspecification problem; regression with dummy variables. Prerequisites: EC 234, MATH 101.

EC 332 ADVANCED ECONOMETRICS (3)

Heteroskedasticity, autocorrelated errors, time-series analysis, simultaneous equation models, system methods of estimation. Prerequisite: EC 331.

EC 344 MONEY, BANKING AND FINANCIAL INSTITUTIONS (3)

Definition of money; determinants of the supply of, and demand for, money; theories explaining the changes in the general price level; central banking, commercial banking and other financial intermediaries, monetary policy. Turkish data and institutions will be emphasized throughout the course. Prerequisites: EC 203, 205.

EC 350 GOVERNMENT CONTROL (3)

Structure of markets; promotion of competition by anti-trust laws and other means; public control of certain industries, including public utility regulation; government control of production, sales and prices, government ownership and operations. Prerequisites: EC 203, 205.

EC 351 PUBLIC FINANCE (3)

Causes of market failure and the need for government intervention in the economy (analysis of public goods, externalities, decreasing cost conditions); the problem of income distribution; budget systems and cost-benefit analysis; government expenditure patterns and tax structures. Prerequisites: EC 203, 205.

EC 352 TOPICS IN PUBLIC FINANCE (3)

Theory of income determination; unemployment problems; the theory of economic stabilization and the impact of government expenditures and taxes on the level of economic activity. Prerequisites: EC 351.

EC 358 WORLD ECONOMIC HISTORY (3)

Survey of world economic history; theories of long run economic development; discussion of roles of geography, institutions, politics and culture; characteristics of and empirical evidence on different eras; transition to agriculture; Malthusian era; industrialization. Prerequisite: EC 101, EC 102.

EC 361 INTERNATIONAL ECONOMICS (3)

The bases for trade and patterns of specialization and exchange in the classical, neoclassical and Hecksher-Ohlin-Samuelson models of trade. The effect of trade on relative and absolute factor prices. The effect of growth on trade. Prerequisites: EC 203, 205.

EC 362 TOPICS IN INTERNATIONAL ECONOMICS (3)

Positive and normative analysis of tariffs, subsidies, and other restrictions on trade. The foreign exchange market. Balance of payments equilibria and disequilibria. Methods of adjustment to balance of payments disequilibria under the major exchange rate systems. Prerequisite: EC 208, EC 361.

EC 403 ECONOMIC POLICY (3)

The course will introduce advanced undergraduate students to surveys of contemporary policy issues in economic literature. An effort will be made by different instructors to cover two or more independent topics per semester. Prerequisites: EC 203, 205, EC 331.

EC 404 ENVIRONMENTAL AND ECOLOGICAL ECONOMICS (3)

The development of environmental thinking in economics; alternative definitions and measurements of sustainability; a survey of contemporary economic approaches that conceptualize the economics-environment relationship; environmental valuation; decision-making techniques, costbenefit analysis and multi-criteria evaluation; environmental policy instruments. Case studies. Prerequisites: EC 101, EC 102.

EC 405 TRANSPORTATION ECONOMICS (3)

Nature of demand and cost in the transportation industry; pricing of transportation services; resource allocation; urban transportation; problems of congestion; transportation and location theory; international transportation organizations. Prerequisites: EC 203, 205.

EC 406 AGRICULTURAL ECONOMICS (3)

Sources and nature of contemporary agricultural problems; various models of agricultural development: the role and effect of agricultural policies, the interrelationships between agricultural development and other sectors of the economy; basic characteristics of Turkish agricultural development; basic Turkish agricultural problems and various possible methods of solving these problems. Prerequisites: EC 101, EC 102.

EC 407 LABOR ECONOMICS (3)

Determinants of labor supply and labor demand; determinants of wages; welfare programs and work incentives; household production; the employment effects of minimum wages; the impact of immigration on the wage and employment opportunities of natives; segmentation and discrimination in labor markets; human capital investment; estimating the rate of return on schooling; impact of government programs on labor market outcomes. Prerequisites: EC 203, EC 205.

EC 408 APPLIED MACROECONOMICS (3)

Macroeconomics from an applied perspective; national income accounting; applied general equilibrium; calibration and simulation; economic growth—the roles of capital accumulation, increased education, and technological progress in determining economic growth; savings—the effect of government and private debt on economic growth; and exchange-rate regimes. Prerequisites: EC 203, EC 205, EC 331.

EC 409 HEALTH ECONOMICS (3)

The supply and demand for health services; health insurance, adverse selection, moral hazard; healthcare providers, physicians, hospitals, pharmaceuticals; health systems, regulation, financing of health care and health care reform. Prerequisites: EC 203.

EC 411 HISTORY OF ECONOMIC THOUGHT (3)

This course is devoted to a retrospective analysis of major schools of economic thought in the eighteenth and nineteenth centuries. The first part of the course focuses on Pre-Adamite economics with special emphasis on Mercantilism and Physiocracy. This is followed by a systematic examination of the theories of outstanding classical economists such as Smith, Ricardo and Malthus. Prerequisites: EC 213 or Consent of Instructor

EC 412 TOPICS IN HISTORY OF ECONOMIC THOUGHT (3)

The course will begin with an intensive discussion of Marxian economics with special emphasis on the Marxian theory of value and distribution and the theory of capitalist development. Subsequently, the marginal revolution and the neoclassical theory of production and distribution will be presented. This will be followed by a discussion of the Cambridge debates on capital theory as exemplified by the reswitching of techniques controversy. The course will end with a discussion of Walras and the emergence of general equilibrium theory. Prerequisites: EC 203, 205.

EC 414 INSTITUTIONAL ECONOMICS (3)

Introduction to institutional economics; definitions, key concepts and methodology of institutional economics; examples of economic institutions in historical developments; evolution of economic and political organizations, laws, contracts and customs in different regions; game theoretic models and empirical studies. Prerequisites: EC 206.

EC 416 MARXIAN ECONOMICS (3)

Introduction to Marxian economics;definitions, keyconcepts and methodologyof Marxian economics;modes ofproduction;transitionfromfeudalismto capitalism;labor theoryof value;classanalysis;capitalismand itscrisistendencies.

EC 419 MECHANISM DESIGN (3)

Impossibility theorems; implementation; direct mechanisms; the revelation principle; Vickrey-Clarke-Groves (VCG) mechanisms; Arrowd'Aspremont-Gerard-Varet (AAGV) mechanisms; auctions with private values; first-price auctions; second-price auctions; revenue equivalence; optimal auctions; auctions with interdependent values; winner’s curse; affiliation; English auction; linkage principle. Prerequisites: EC 206.

EC 423 ECONOMICS OF CORPORATE FINANCE (3)

Toolsandtechniques of corporatefinance, withemphasis ontheoreticalfoundations;economic analysisofinvestment, financing, capitalstructure,and dividend policydecisions of firms and corporations.

EC 425 DIVERSE ECONOMIES (3+0+0) 3 ECTS 6 (3)

Alternative ways of conceptualizing economies and organizing economic processes. Alternative ways of conceptualizing economies: diverse economies framework with special emphasis on household economies, gift economies, sustainable economies, communal economies, cooperative economies and participative economies. Alternative ways of organizing economic processes: controlling markets, extending credit, taming capital and building community and solidarity economies. Prerequisites: EC 101, EC 102.

EC 427 FINANCIAL ECONOMICS I (3)

Theory of financial economics: analysis of financial decision making; portfolio theory; asset pricing theory; arbitrage theory and efficient market hypothesis. Prerequisites: EC 203.

EC 428 FINANCIAL ECONOMICS II (3+0+0) 3 ECTS 6 (3)

Theory and applications of the term structure of interest rates, derivatives, futures and options markets, volatility models. Prerequisites: EC 427, EC 332.

EC 431 APPLIED ECONOMETRICS I (3)

Examination of the problems of econometric model building, testing, preparing and analyzing forecasts with special reference to demand, production and consumption functions, and macro-economic models. Prerequisites: EC 331.

EC 432 APPLIED ECONOMETRICS II (3)

Examination of macro-econometric models, estimation, forecasting and simulation. Prerequisite: EC 332.

EC 433 PROJECT EVALUATION (3)

A critical survey of general investment criteria, Social Marginal Productivity of Capital (SMP), marginal per capita reinvestment surplus and time series criteria; the Little-Mirrlees method of project appraisal: choice of a numeraire and world prices; valuation of traded and non-traded goods, shadow wages and accounting rate of interest.The UNIDO approach to project appraisal: direct present benefits and costs, indirect future benefits and costs, the shadow wage rates, shadow price of investment and social discount rate, project appraisal and income distribution. Prerequisites: EC 203, 205.

EC 436 QUANTITATIVE METH.FOR PUBLIC POLICY EVAL (3)

Causalityversuscorrelation;descriptive analysis;randomized experiment;naturalexperiments and instrumentalvariables; regressiondiscontinuitydesign;propensityscore matchingand regression;difference in difference.

EC 438 EXPERIMENTAL ECONOMICS (3)

A brief historyof controlled experimentsin economics;methodologyof experimentaldesign andhypothesistesting;review anddiscussion ofresults fromexperiments on individual decision making, simultaneous andsequentialgames, socialpreferences, trust, reciprocity, publicgoodsand coordinationproblems.Programmingcomputer-based experiments.

EC 439 BEHAVIORAL ECONOMICS (3+0+0) 3 ECTS 6 (3)

Introduction to classical models of decision making; bounded rationality and behavioral biases; behavioral models of choice under uncertainty, intertemporal choice, overconfidence, fairness, reasoning in multi-player games. Using behavioral economics for public policy. Prerequisite: EC 206.

EC 442 GAME THEORETICAL MODELS OF POLITICAL EC. (3)

Models of voterparticipation—pivotalvoter model, ethicalvoter model, uncertainvotermodel;strategic voting;electoralcompetition—Downsianelectoral competition, median-voterequilibria,probabilistic voting;electoralsystems;theoryof politicalregimes and transitions.

EC 447 THE POLITICAL ECONOMY OF THE ENVIRONMENT (3+0+0) 3 ECTS 6 (3)

Analysis of environmental and natural resource allocations among competing individuals, groups, and classes; interplay between values and institutions in environmental problem-solving; common pool resources; financialisation of nature and environmental ethics; ecological distribution conflicts; challenges of global environmental governance. Case studies on issues such as fisheries, forest management, biodiversity conservation, climate change. Prerequisites: EC 101, EC 102.

EC 449 TOPICS IN BANKING AND FINANCE (3)

Functionsof banks;asymmetricinformationinfinancialmarkets; bankmanagement,riskmanagement;competitionin banking;bankingandfinancialcrises;bankingregulation, Baselcapitalaccord;lenderof lastresort;issues in creditand depositmarkets.

EC 454 TURKISH TAX SYSTEM (3)

Historical development of the Turkish tax system. Structure of the tax system, taxes based on income, taxes based on expenditures, taxes based on wealth and transfer of wealth, elasticity of the tax system and tax burden. Prerequisites: EC 351, 352.

EC 465 COMPUTATIONAL METHODS IN MACROECONOMICS (3)

Selected data sources; introduction to statistical and econometric programming (EViews and STATA); introduction to computation and solution methods (MATLAB); numerical economic modeling and computational applications of life-cycle permanent income hypothesis; real business cycle theory and other general equilibrium models; numerical dynamic programming. Prerequisites: EC 205.

EC 470 TURKISH ECONOMY (3)

Economic organization in, and resources of, Turkey; structure and trends in income, production, population, finance and trade; evolution of economic policy. Prerequisites: EC 208, senior standing.

EC 471 GROWTH AND DEVELOPMENT (3)

Survey of classical and contemporary theories of growth and development, and the identification of major problems of economic development and structural change. Prerequisites: EC 203, EC 208.

EC 474 TOPICS IN INTERNATIONAL DEVELOPMENT (3)

The analysis of development policy process, alternative strategies of growth and industrialization, and the survey of leading issues in economic development. Prerequisites: EC 203, EC 208.

EC 475 EUROPEAN UNION-TURKEY ECONOMIC RELATIONS (3)

The first part of the course is a critical survey of the institutions of the European Union (EU) and the decision making process. The second part is devoted to some specific EU policies: social policies, regional policies, the Common Agricultural Policy, industrial policy, trade policy, competition policy and consumer protection. The third part of the course is a review of Turkey's association with the EU with emphasis on the economic implications of the EU Customs Union for Turkey. Prerequisite: EC 205 or POLS 343 or POLS 344.

EC 480 SP.TP.TURKISH BANKING SECTOR (3)

EC 481 SP.TP.CLIMATE CHANGE,ECONOMICS&POLICY (3)

EC 482 SP.TOP.:INSTITUTIONS,DEVELOPMENT&HISTORY (3)

EC 484 SP.TP.IN APPL.MACRO.&FINANC.INDIC.ANALY. (3)

EC 489 SPECIAL TOPICS IN ECONOMICS (3)

EC 48A SP.TP.IN ECONOMIC ANALYSIS (3)

EC 48C SP.TP.ENVIRONMENTAL&ECONOMIC POLICIES (3)

EC 48F SP.TP.IN GOVERNANCE (3)

EC 48V SP.TP.BANKING AND FINANCE (3)

EC 48W SP.TP.IN DATA-DRIVEN DECISION MAKING (3)

EC 48X SP.TP.IN INT.TRADE,INVESTMENT&GLOBAL. (3)

EC 48Z SP.TP.IN MATCHING THEORY (3)

EC 490 DIRECTED READING AND RESEARCH (3)

Members of the Economics Department give reading and research assignments to students and supervise the progress of these projects. The circumstances where such projects are warranted are to be determined by the faculty members. The scope and duration of the reading and research projects are to be indicated at the beginning of the semester.

EC 581 SP.TP.ALGORITMIC TRADING&QUANTITATIVE (3)

EC 582 SP.TOP.POL. EC. OF THE INFORMAL SECTOR (3)

EC 583 SEL.TOP.IN FINANCIAL MARKETS& REGULATION (3)

EC 584 SP.TP.POLITICAL EC.OF INEQUALITY THEORY (3)

EC 585 SP.TP.IN DYNAMIC MACRO ECONOMIC MODELING (3)

EC 586 SP.TP.IN ECONOMIC DEVELOPMENT (3)

EC 587 SELECTED TOPICS IN COMPARATIVE POLITICAL (3)

EC 58E SP.TP.IN ECONOMIC THEORY (3)

EC 58F SP.TP.POST-WALRASIAN MICRO.THEORY (3)

EC 58G SP.TP.RESEARCH&READ.ON POLITICAL EC. (3)

EC 58J SP.TP.POLITICAL EC.OF ENVIRON.CONFLICTS (3)

EC 58K SP.TP.INTEGRADING.ENVIR.AND ECO.POLICICS (3)

EC 58L SP.TP.MACRO ECONOMETRICS (3)

EC 58M SP.TP.EXPERIMENTAL ECONOMICS (3)

EC 58P SP.TP.IN ECONOMICS THEORY (3)

EC 596 SP. TOP. IN ECONOMETRICS I (3)