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Information
| Unit | INSTITUTE OF SOCIAL SCIENCES |
| ECONOMICS (PhD) | |
| Code | İKT829 |
| Name | Financial Economics |
| Term | 2024-2025 Academic Year |
| Term | Fall and Spring |
| Duration (T+A) | 4-0 (T-A) (17 Week) |
| ECTS | 8 ECTS |
| National Credit | 4 National Credit |
| Teaching Language | Türkçe |
| Level | Doktora Dersi |
| Type | Normal |
| Mode of study | Yüz Yüze Öğretim |
| Catalog Information Coordinator | |
| Course Instructor |
Prof. Dr. HARUN BAL
(Bahar)
(A Group)
(Ins. in Charge)
|
Course Goal / Objective
Financial Economics topics will be introduced to students within the framework of International Finance. In this research-oriented course, it is aimed to focus on the complementary features of the issues related to the relationship between International Finance and Modern Central Banking. In this course, the relevant literature will be reviewed and analyzed and students will be encouraged to pursue intermediate and advanced studies while increasing their knowledge on these issues. Within the scope of the course, students are also expected to write a country-specific research paper and take this work to relevant platforms.
Course Content
The concept and scope of financial economics, Types and functioning of financial markets, Arbitrage Pricing Theory (APT), Capital Asset Pricing Model (CAPM), Multi-Factor Models and Applications, Asset Pricing from a Behavioral Finance Perspective, Irrational investor behavior, Market bubbles and crashes, Risk perception and investment decisions, Central bank policies and interest rates, Inflation, exchange rate policies and financial markets, Government debt management and macroeconomic effects, Types of financial risks (exchange rate, interest, credit and liquidity risk) Options, futures and swap markets Hedging strategies and portfolio management, Company valuation methods, Capital structure theories Dividend policies and firm performance, Macro-financial connections and crisis predictions Financial analysis with big data and machine learning, Alternative investment instruments and sustainable finance
Course Precondition
It is expected to have completed the first semester of the Economics PhD program courses and to have basic quantitative skills.
Resources
Alp, H., & Elekdag, S. (2011). The role of monetary policy in Turkey during the global financial crisis. In the Great Recession: Lessons for Central Bankers. The MIT Press, 51-80. Ball, L. (1999).
Notes
Gali, J. (2015). Monetary policy, inflation and the business cycle. Princeton University Press. Harrison, R. (2012). Asset purchase policy at the effective lower bound for interest rates. Bank of England Working Papers, 444. Harrison, R. (2017). Optimal quantitative easing. Bank of England Working Papers, 678. Kolasa, M., & Wesolowski, G. (2018). International spillovers of quantitative easing. European Central Bank Working Papers, 2172. Kuttner, K. (2006). Can central banks target bond prices? National Bureau of Economic Research Working Papers, 12454. Merola, R. (2015). The role of financial frictions during the crisis: An estimated DSGE model. Economic Modelling, 48, 70-82. 90
Course Learning Outcomes
| Order | Course Learning Outcomes |
|---|---|
| LO01 | Explains modern financial economics theories such as asset pricing, market efficiency and financial intermediation. |
| LO02 | Explain the role of financial markets, banking systems and regulatory frameworks on economic stability and growth. |
| LO03 | Explains advanced econometric techniques and mathematical models for analyzing financial data and testing economic hypotheses. |
| LO04 | Uses asset pricing models (CAPM, APT and multi-factor models) and risk management strategies in financial decision-making processes. |
| LO05 | Explains behavioral biases, investor psychology, and market anomalies that cause deviations from traditional financial theories. |
| LO06 | Explains the impact of financial technologies (FinTech), blockchain, and digital currencies on traditional financial systems. |
| LO07 | Develops original research methodologies to address complex problems in financial economics. |
| LO08 | Explains the causes and consequences of financial crises and systemic risks in global markets. |
Relation with Program Learning Outcome
| Order | Type | Program Learning Outcomes | Level |
|---|---|---|---|
| PLO01 | Bilgi - Kuramsal, Olgusal | Explains the importance of demand and supply and the conditions of the market economy to work better | 5 |
| PLO02 | Bilgi - Kuramsal, Olgusal | Conducts new research that contributes to science. | 4 |
| PLO03 | Bilgi - Kuramsal, Olgusal | Specifies the role of the market economy, the price advantage of the event. | 4 |
| PLO04 | Bilgi - Kuramsal, Olgusal | Specifies the role of the price advantage in market economy | |
| PLO05 | Bilgi - Kuramsal, Olgusal | Faces with challenges, produces a numerical and policy options. | 4 |
| PLO06 | Bilgi - Kuramsal, Olgusal | Applies the methods of economic analysis. | |
| PLO07 | Bilgi - Kuramsal, Olgusal | Acquires the ability of analyzing in the conceptual level ,compares interprets, evaluates and synthesizes ideas in order to develop solutions to the problems. | |
| PLO08 | Bilgi - Kuramsal, Olgusal | Has the knowledge of quantitative and qualitative techniques used in Economics. | 5 |
| PLO09 | Yetkinlikler - Alana Özgü Yetkinlik | Builds, decodes and interprets models by using quantitative and qualitative techniques | 5 |
| PLO10 | Yetkinlikler - Bağımsız Çalışabilme ve Sorumluluk Alabilme Yetkinliği | Takes responsibility individually and / or in a team,leads a team and works effectively | 5 |
| PLO11 | Yetkinlikler - Öğrenme Yetkinliği | With the awareness of the necessity of life-long learning, follows the latest developments about his field and improves himself | |
| PLO12 | Bilgi - Kuramsal, Olgusal | Speaks Turkish, and at least one other foreign language in accordance with the requirements of academic and business life. | |
| PLO13 | Yetkinlikler - Alana Özgü Yetkinlik | Recognize and apply social, scientific and professional ethical values. | |
| PLO14 | Yetkinlikler - İletişim ve Sosyal Yetkinlik | Expresses himself/herself accurately, both orally and in writing. | |
| PLO15 | Beceriler - Bilişsel, Uygulamalı | Publishes original studies in the field of economics in scientific journals. | 4 |
| PLO16 | Beceriler - Bilişsel, Uygulamalı | Knows where and how to find all scientific resources and data with information technologies to do research. | |
| PLO17 | Yetkinlikler - Alana Özgü Yetkinlik | Understands the necessity and importance of research in social sciences. |
Week Plan
| Week | Topic | Preparation | Methods |
|---|---|---|---|
| 1 | Course description and introduction | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 2 | The process of financialization | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 3 | Financial big-bang | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 4 | Central Banks and monetary policy | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 5 | Relations between economic theory and financialization | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 6 | Modern monetary theory | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 7 | Quantitative easing | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 8 | Mid-Term Exam | Prepare to Exam | Ölçme Yöntemleri: Yazılı Sınav |
| 9 | Taylor's Rule | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 10 | Monetary Policy Comparisons in Keynes-Friedman and Lucas | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 11 | Monetary Policies in Developed Countries | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 12 | Monetary Policy in the European Union | Reading | Öğretim Yöntemleri: Anlatım |
| 13 | Far Eastern Countries and Monetary Policies | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 14 | Monetary Policies in Developing Countries | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 15 | Turkish Economy and Monetary Policies | Reading | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Tartışma |
| 16 | Final Exam | Prepare to Exam | Ölçme Yöntemleri: Yazılı Sınav |
| 17 | Term Exams | Prepare to Exam | Ölçme Yöntemleri: Yazılı Sınav |
Student Workload - ECTS
| Works | Number | Time (Hour) | Workload (Hour) |
|---|---|---|---|
| Course Related Works | |||
| Class Time (Exam weeks are excluded) | 14 | 4 | 56 |
| Out of Class Study (Preliminary Work, Practice) | 14 | 8 | 112 |
| Assesment Related Works | |||
| Homeworks, Projects, Others | 2 | 4 | 8 |
| Mid-term Exams (Written, Oral, etc.) | 1 | 12 | 12 |
| Final Exam | 1 | 24 | 24 |
| Total Workload (Hour) | 212 | ||
| Total Workload / 25 (h) | 8,48 | ||
| ECTS | 8 ECTS | ||