Economics

Game theory is a mathematical tool to study strategic interactions that has become a standard analytical tool in several academic disciplines, e.g. in economics, biology, and political science. This course introduces the basic concepts of non-cooperative game theory. The course analyzes and solves simple game theoretic problems; and explores numerous applications along with empirical and experimental evidence. Mathematical skills beyond simple algebra and graphical analysis are not required in this course. Assessment: midterm exam and final exam.

The course provides an overview of finance, specifically the rules of operation and main problems facing the financial system. The course covers the important position of the financial system in modern society, and analyzes and discusses some major practical problems in the current financial field.
 

This is an introductory course in microeconomics, which exposes students to various microeconomic concepts and theories as well as the practical applications of these concepts. The course begins with a discussion of economic history and the characteristics of different economic systems, as well as factors influencing economic development following the Industrial Revolution. Hereafter, students are introduced to topics within the standard utility-maximization theory of consumption, including optimal bundle and indifference curve analysis. Students are then exposed to game theoretical frameworks to model social interactions amongst economic agents, before applying this framework to wage-setting relationships in the labor market. Applications of experimental economic methods are also briefly explored. Finally, students are introduced to the standard neo-classical theories of supply and demand as well as firms’ pricing decisions under differing levels of market competition.

This course provides an introduction to the most important aspects of corporate finance. The objective is to acquire the essential skills necessary to actively deal with the corporate finance activities of an internationally operating firm. The course explores both investing and financing decisions, focusing on their role in the creation of shareholder value. The course covers four main parts. The first part covered is the value of a firm, including financial instruments, valuation concepts, and decision rules. The second part is risk and return, including theory, empirical evidence, and applications to capital budgeting. The third part of the course is financing decisions and market efficiency. The fourth part of the course is payout policy, capital structure, and valuation. Topics covered include: finance and the financial manager; valuing bonds and common stocks; NPV and investment decisions; risk, return and the opportunity cost of capital; capital budgeting and risk; efficient markets and behavioral finance; payout policy, debt policy, and capital structure; financing and valuation. Students attending this course should be familiar with the basics of mathematics, statistics, financial mathematics, accounting, and financial markets and institutions. In particular, students should have reasonable knowledge of the basics in financial mathematics such as the time value of money, annuities, and perpetuities; basics in statistics such as probabilities, variances/covariances, and ordinary least squares; basics in accounting such as being able to read information contained in balance sheets, income statements, and cash flow statements.

The course provides a theoretical foundation in the development of green and sustainable solutions within the economic context of Germany and Europe and develops an understanding of how sustainable entrepreneurship is unfolding creative potential and opportunities for environmental improvements using core business activities. The course equips students with more practical tools and processes for developing their own business ideas for the green economy. This course provides an introduction to recent developments in Germany and the European Union (EU) with regard to a green and sustainable economy. This course begins by exploring key concepts for a green and sustainable economy in the German and European policy contexts and then looks at the development that has taken place both at the political level and in the economy in recent time. It then focuses on the micro-level of the businesses themselves and discusses the motivating forces behind entrepreneurs' and businesses' decisions to make a strategic commitment to environmental sustainability. Students consider the roles and strategies of different types of companies and how incumbents and start-ups engage in environmental protection. The course also looks at the strong connection between politics and business in the European context and the inclination of many sustainable entrepreneurs to engage in policy making in a manner that also turns them into “institutional” entrepreneurs, acting at a meso-level. Finally, the more theoretical part of the course looks at how sustainable entrepreneurs may encounter market and regulatory barriers related to environmental externalities, path dependencies, and lobbying activities by incumbent companies. It also looks at (partial) solutions to such barriers provided by incubators, business competitions, universities, investors, and public funding programs. The more practical part of the course engages with good practice examples through the entrepreneurs themselves (guest speakers) and by going on a field-trip. As Berlin has a special reputation for hosting a vibrant start-up scene, students visit the Green Garage on the Euref campus in Schöneberg, where they learn more about the acceleration and incubation processes of the EU initiative “Climate KIC”, and meet the start-ups based there. The students also are encouraged to creatively develop their own business ideas and plan the initial steps using the Sustainable Business Canvas. Their business concept/model is then presented and discussed in the group, providing tips for future improvement and possible realization of the ideas.

This course provides an introduction to the theory and methods of modern econometrics. It begins by reviewing and extending the statistical material covered in the senior freshman year. Following this, students are guided through the fundamental principles of econometrics and working through to more advanced topics as the module progresses. The course provides a balance between core theoretical material and an extensive applied component which develops student's practical skills necessary to conduct independent applied research.