International Economics and Finance

Using these concepts, seeks to highlight some of the challenging real-world public policy issues confronting the government sector in different parts of the world and how these are evolving in a globalizing world. Prerequisites: Microeconomics or Accelerated Microeconomics and Macroeconomics or Accelerated Macroeconomics. (This is a cross-listed course offered by the International Economics Program that also can fulfill a requirement for the International Development Program).

Focuses on understanding and forecasting financial conditions in international markets; identifying, measuring and managing exchange-rate risk; taxation of international income; implications of political risk on project valuation; and cost of capital for international projects. Prerequisite: Financial Decision-Making.

The use of simple and complex probabilistic models in describing risk and valuing risk outcomes will be explored, including an evaluation of the conditions under which analytical approaches and modeling work well or fail.

presents assumptions of multivariate regression and discusses the most common econometric problems and the potential consequences and remedies; and discusses omitted variables, sample selection, heteroscedasticity, autocorrelation, multicollinearity and use of discrete variables. Introduces instrumental variable technique. Uses statistical software in applied exercises. Prerequisite: Statistical Methods for Business and Economics.