Economics

This course studies the design of institutions that optimally cope with fundamental, longstanding economic questions (allocation of private goods, public good provision, externalities). It begins from a simple, institution-free description of each question to understand the basic tensions at work and derive institutions that optimally address these tensions. In the process, it introduces the important ideas of social choice, game theory, and market design and highlights the theoretical concepts using empirical applications and in-class games. Topics include social choice, efficiency, and welfare; game theory and incentives; institutions as mechanisms; and limits to efficiency.

Prerequisite: It is strongly encouraged that students to take the statistics/econometrics classes in the same semester if they have not yet done so.
 

This course provides an opportunity for students to conduct academic research in the field of economics; summarize research outcomes in a paper effectively, and present their research outcomes in an engaging manner. Given the increasing demand for data analysis skills in industry and academia, this course is designed to help students learn empirical skills and apply them in academic research.
 

This course explores the history of economic thought beginning with Adam Smith’s defense of market society at the start of the industrial revolution and Karl Marx’s critique of capitalism. It includes debates over socialist and development planning, the rise of development economics in the colonial and post-colonial context, and debates over the role of finance in shaping growth and inequality. The relationship between state, market, and society is a central theme – as is the contemporary relevance of economic thought for Africa. Additional lenses are also given to theories developed around African economic development and their linkages with other continents and development theories. Assessment: coursework (50%) and a final exam (50%).

This course covers the recent developments in experimental and behavioral economics as well as their extension into neuroeconomics. It demonstrates how developments in cognitive psychology and neural exploration in the subjective representations of the stakeholders have enriched the discipline at the microeconomic and macroeconomic levels. The course investigates several iterations of this young sector which is being shaped by a never-before-seen cooperation between the hard sciences and the social sciences by showcasing several applications: monetary incentivization, entrepreneurship behavior and attention control, behavioral finances, risk attitudes, the rules of cooperation, the role of knowledge and belief in decision making, the mechanisms of coordination, et cetera.

This course enables students to apply economic principles and models to understand the role of money and banking in the economy and to critically evaluate current debates on competition and regulation in the banking sector. The course studies the role of banking in the financial system and in the wider economy; the economic theory of bank intermediation; economic models of how banks make lending decisions in different market structures; strategies adopted by banks to address risk, with particularly reference to informational asymmetries; economic assessment of competition in banking, considering price and non-price strategies; banking regulation and government intervention in the banking sector; and current debates on the role of government and future of regulation for the sector.

This course examines the structure, operations, and functions of the financial system. The course starts with an introduction to financial markets’ role in the economy and the determination of interest rates and valuation of cash flows. The course then discusses various financial markets including money markets, bond markets, mortgage markets, stock markets, and derivatives markets. Financial institutions will be discussed with an emphasis on their major functions and operations. 

This course provides an in-depth understanding of the financial decision-making practice of corporations and enables students to apply financial theories to understanding issues and solving problems in real-world settings. The course examines the costs and benefits of various financing choices with an emphasis on issues of taxation, financial distress costs, agency conflicts, information problems, and managerial incentive problems. These issues are explored in the context of a firm’s capital structure choice, payout policy, security issues, and mergers and acquisitions.