Conceptual foundations and modeling tools towards an understanding of economic decisions and interactions; theory of the consumer: preferences and utility maximization, with application to different choice contexts; theory of the firm: profit maximization, cost minimization; market equilibrium with perfect competition, monopoly, and oligopoly; markets for factor of production; introduction to general equilibrium and welfare; public goods and externalities; basic concepts of game theory and strategic interaction; information and market failure.

Conceptual foundations and modeling tools towards an understanding of economic decisions and interactions; theory of the consumer: preferences and utility maximization, with application to different choice contexts; theory of the firm: profit maximization, cost minimization; market equilibrium with perfect competition, monopoly, and oligopoly; markets for factor of production; introduction to general equilibrium and welfare; public goods and externalities; basic concepts of game theory and strategic interaction; information and market failure.

Real and financial sides of the aggregate economy; determinants of long-term economic growth and the Solow growth model; the business cycle and the behavior of aggregate consumption, savings, investment , and unemployment; aggregate price dynamics and inflation; monetary and fiscal policies in the context of IS-LM framework; open economy: real exchange rate and balance of payments. Impact of financial crises and macroeconomic policy response.

Real and financial sides of the aggregate economy; determinants of long-term economic growth and the Solow growth model; the business cycle and the behavior of aggregate consumption, savings, investment , and unemployment; aggregate price dynamics and inflation; monetary and fiscal policies in the context of IS-LM framework; open economy: real exchange rate and balance of payments. Impact of financial crises and macroeconomic policy response.

Real and financial sides of the aggregate economy; determinants of long-term economic growth and the Solow growth model; the business cycle and the behavior of aggregate consumption, savings, investment , and unemployment; aggregate price dynamics and inflation; monetary and fiscal policies in the context of IS-LM framework; open economy: real exchange rate and balance of payments. Impact of financial crises and macroeconomic policy response.

Methods used for empirical examination of economic phenomena. Linear regression: least squares, goodness of fit, prediction; classical regression model; properties of estimators; links between models and economic theory; functional form; interpretation of regression results. Inference; confidence intervals and hypothesis testing; introduction to econometric packages and applications using data from economics and business; implications of relaxing the assumptions of the classical regression model.

Theoretical and empirical examination of the labor market: labor supply, demand for labor, and market equilibrium. Links between demographics (gender, race and ethnicity, marital status, age...) and labor market outcomes. Investments in human capital; household production and division of labor, fertility; job mobility and migration. Real and money wage determination; compensation schemes; compensating wage differentials; unions, public versus private sector employment, informal sector, and labor market segmentation; unemployment and poverty; discrimination and segregation. Selected aspects of the labor market in Türkiye.

Theory of international trade: Ricardian model of comparative advantage, Hecksher-Ohlin model, specific factors model, trade and market structure. Domestic politics of trade; tariffs, quotas and other non-tariff barriers. International politics of trade, history of world trade talks and the WTO. International movement of factors: Immigration and foreign investment; technology transfer and the role of multinational companies.

Firm behavior in imperfectly competitive markets. How firms acquire and maintain market power. Welfare consequences of market power. Strategic interactions among firms, and the role of government competition policy. Basic theoretical models of industrial economics: Bertrand and Cournot competition, collusion, advertising, innovation, and international trade.

Firm behavior in imperfectly competitive markets. How firms acquire and maintain market power. Welfare consequences of market power. Strategic interactions among firms, and the role of government competition policy. Basic theoretical models of industrial economics: Bertrand and Cournot competition, collusion, advertising, innovation, and international trade.

Determinants of competitive strategy in a variety of market structures; How the structure of industry affects strategic choices and performance. Topics include the dynamic aspects of pricing, entry and predation in concentrated industries, and product differentiation, product proliferation and innovation as competitive strategies.

Analysis of strategic interactions that commonly arise in economic, business, political, and judicial arenas. A systematic introduction to game theory and some of its applications, such as market competition, technological races, auctions, party competition for votes, and bargaining.

Analysis of strategic interactions that commonly arise in economic, business, political, and judicial arenas. A systematic introduction to game theory and some of its applications, such as market competition, technological races, auctions, party competition for votes, and bargaining.

Principles of taxation and the role of government: excess burden and optimal taxation; voting and its relevance for public finance; redistribution of income and wealth; inflation and public finance. Welfare economics. Analysis of public sector decision making and privatization. Project evaluation and cost-benefit analysis.

Topics will be announced when offered.

Theoretical and empirical examination of commercial bank operations with specific reference to the Turkish Banking industry. Money supply and demand; the role of commercial banks in the economy and their regulation by monetary authorities; stability of the financial system; bank contracts and their pricing and management with respect to interest rates; inflation and credit risk; securitization of bank assets; factors behind the rapidly growing non-bank sources of corporate funds; the future of banking.

Theoretical and empirical examination of commercial bank operations with specific reference to the Turkish Banking industry. Money supply and demand; the role of commercial banks in the economy and their regulation by monetary authorities; stability of the financial system; bank contracts and their pricing and management with respect to interest rates; inflation and credit risk; securitization of bank assets; factors behind the rapidly growing non-bank sources of corporate funds; the future of banking.

Topics will be announced when offered.

This course will examine the role played by institutions and political economy considerations in determining overall economic performance. The course aims to describe the role and evolution of institutions in economic growth, to understand basic models of politics, and to provide an introduction to the dynamic effects of fiscal and monetary policy. By the end of the course, students should be able to understand the the role of institutional failure, models of governance and mis-governance, optimal fiscal policy, and the concepts of reputation, credibility, and time inconsistency.

Choice under uncertainty; game theory; mechanism design; principal-agent models.

The course includes topics such as the game theory under perfect information, game theory under imperfect information, matching and mechanism design.

Classical and Keynesian theories of cyclical fluctuations; real business cycle theory; determination of employment and real wages; credit markets and financial stability; stabilization policy.

Departures from the standard assumptions: specification tests; a first look at time series; generalised regression; nonlinear regression; simultaneous equations, identification, instrumental variables. Extensions and applications: ML, GMM, VAR, GARCH, panel data.