BOĞAZİÇİ UNIVERSITY
ECONOMICS and FINANCE PROGRAM

COURSE DESCRIPTIONS

CORE COURSES

EF 501 Microeconomics (3+0+0) 3

Consumer and firm behavior under certainty and uncertainty; general equilibrium analysis in complete and incomplete markets; fundamentals of game theory; economics of asymmetric information.

EF 502 Financial Markets (3+0+0) 3

Domestic and international financial markets; the structure, the organization, and the regulation of the banking sector, money markets, stock markets, bond markets, futures and options markets, insurance markets, foreign exchange markets, and international asset markets.

EF 503 Open Economy Macroeconomics (3+0+0) 3

Basic theories of international trade; instruments of trade policy; fixed and floating exchange rate models; the international monetary system; international capital markets; emerging financial markets; capital flows and financial crises.

EF 505 Theory of Finance (3+0+0) 3

Static and dynamic finance theory; risk and arbitrage, portfolio analysis, asset pricing models, intertemporal models of finance, and derivative pricing.

EF 506 Corporate Finance (3+0+0) 3

Principles of corporate finance; analysis of investment decisions; capital budgeting and risk; instruments of capital financing; dividend policy, debt policy, and capital structure; analysis of financial performance; financial planning; mergers and acquisitions; international financial management.

EF 507 Quantitative Methods for Economics and Finance (3+0+0) 3

Fundamental quantitative techniques for economic and financial analysis; difference and differential equations; static and dynamic optimization; basic tools of linear algebra; elements of statistical analysis; statistical inference.

EF 508 Macro and Financial Econometrics (3+0+0) 3

Basic econometric techniques; time series econometrics for macroeconomics and finance; analysis of expectations in macro and financial models; conditional variance models; econometrics for real business cycle models.

ELECTIVE COURSES

EF 550 Decision Models for Economics and Finance (3+0+0) 3

Principles of strategic decision-making and its applications; analysis of static and dynamic games under complete and incomplete information; applications from economics and finance; market games and strategic trading, negotiating, contracting, bidding and auctions, network models.

EF 551 Financial Intermediaries (3+0+0) 3

The analysis of financial intermediaries (banks, brokers, mutual funds, and pension funds); regulation of financial intermediaries; debt renegotiation and bankruptcy resolution procedures under asymmetric information.

EF 552 International Financial Markets (3+0+0) 3

The globalization of financial markets; banking in Europe and the US in a historical perspective; structure of global debt and equity markets; European Monetary Union and its impacts on financial markets; emerging financial markets; regulatory issues in the global financial system.

EF 553 Industrial Organization for Financial Markets (3+0+0) 3

Models of industrial organization for analyzing financial market structures; perfect competition, contestable monopoly, monopolistic competition, and oligopolistic competition; location models; measures of market concentration; analysis of mergers and acquisitions; the impact of information technology and financial product innovation on financial market structure; empirical and topical case studies related to structure of financial markets.

EF 554 Competition Policy and Regulation of Financial Markets (3+0+0) 3

The economic impacts of competition and regulation policies on financial markets; policies against collusion, vertical restraints, and anti-competitive mergers in financial markets; economic and institutional issues related to regulatory policy in financial markets; empirical assessment of competition and regulatory policies.

EF 555 Valuation and Securities Analysis (3+0+0) 3

Theory and application of security analysis and valuation; financial analysis for security valuation; determination of security prices; fundamental and technical analysis; empirical assessment of returns to trading strategies based on financial analysis.

EF 556 Portfolio Management (3+0+0) 3

Management of portfolio risk; diversification strategies; transaction costs and trading strategies; measurement of portfolio performance; currency management for international investors.

EF 557 Financial Risk Analysis and Management (3+0+0) 3

Techniques of financial risk assessment; risk measurement for fixed income and derivative securities; credit risk modeling; risk adjusted capital allocation models, modelling of systematic and liquidity risk.

EF 558 Derivatives (3+0+0) 3

Analysis of strategies employing derivative securities; forwards, futures, options, swaps, hedging with derivatives; techniques for pricing and measuring the risks of derivatives; design of new financial securities.

EF 559 Asset and Liability Management (3+0+0) 3

Measuring and managing interest rate risk; techniques to measure financial risk; value-at-risk, regression measures; the use of derivatives in asset and liability management; options, interest rate futures, swaps, hedging.

EF 560 Bank Management (3+0+0) 3

Management of depository financial intermediaries with emphasis on commercial banks; bank regulation, liquidity and reserve position management, loan pricing and analysis, and investment portfolio problems.

EF 561 Monetary Policy and Central Banking (3+0+0) 3

Objectives and instruments of the monetary policy employed by central banks; price stability and optimal rate of inflation; open market operations; public debt management; the implications of capital account convertibility.

EF 562 Advanced Corporate Finance (3+0+0) 3

Advanced topics and applications in corporate finance; leasing, mergers and acquisitions, corporate reorganizations, financial planning and working capital management, pricing of selected financial instruments and corporate liabilities.

EF 563 Strategic Management (3+0+0) 3

Overall management of firms in competitive environments; interaction of financial and other decision making in a firm; development and implementation of business strategy in a long-term perspective.

EF 564 Corporate Control and Governance (3+0+0) 3

Interaction between investor protection and firm-specific choices, including capital structure, internal controls, and executive compensation systems; features of corporate structure and control that minimizes the scope for expropriation by owners and minority shares.

DIRECTED READING

EF 581-583 Directed Readings on the Structure of Financial Markets (0+4+0) NC

Guided readings on different financial market structures in different countries; supervised research on topics of special interest to the individual student.

TERM PROJECT

EF 591 Term Project (0+2+0) NC

Directed research leading to a term paper on a topic of interest to the student, chosen with the approval of the advisor.