Applied Economics Fundamental and Core Courses
Introduction to Management (3 Credits)
Introduction to management is a required course for all the undergraduate students of School of Business. Basically, management is a science and art, and dynamic as well. This course is expected to enable students to have a full understanding of the importance of management in today’s daily increasing global competitive business environment. It provides students with basic managerial theories, concepts & principles. Emphases are given to the four functions of management, i.e., planning, organizing, leading and controlling. By the end of this course, students are expected to understand basic theories about management, and be able to apply what they have learnt from this course into practices. This course aims to assist students to build up a scientific framework of analyzing business and management. It will prepare students to better cope with disciplines that related to advance management in the coming semesters. Hence, enable them to develop managerial skills in the future.
Business Statistics (3 Credits)
This course introduces ideas of probability distribution and main statistical analysis tools which are widely used in modern business management. This course will cover sampling and data gathering, descriptive statistics, concept of probability and probability distribution, sampling distribution, hypothesis test and regression analysis. This course aims to encourage students to apply the ideas and methods to solve specific problems in business administration.
Principles of Accounting (3 Credits)
This course is one of the core courses of Applied Economics major. It covers the purpose of accounting, basic assumptions and principles, categories and functions of accounts, and the application of double-entry accounting system. It will equip the students with the brief overview of accounting cycle, accounting treatments of daily economic events and transactions, and the basic understanding and analysis of financial statements.
Principles of Finance (3 Credits)
This course introduces the basic concepts, principle, and instruments of corporate finance, and how to use this knowledge make financial decision in practice. The main contents include analysis of financial statement, the calculation method of cash flow, financial ratios, simple interest and compound interest, time value of money, formula of discounted cash flow, capital budget, valuation of stock and bond, mean deviation model, and capital asset pricing model.
Linear Algebra (3 Credits)
Linear algebra is a fundamental knowledge on many different aspects. It is widely applied in Mathematics, engineering, business, economics, etc. The aim of this is to introduce the basic knowledge of linear algebra. The context includes (1) how to use matrix to represent system of linear equations, (2) basic operation of matrix, (3) how to use matrix operation to solve the system of linear equations, i.e., Ax=b, (4) eigenvalues and eigenvectors, (5) the application to least square analysis. After the course, students will learn the fundamental knowledge. Meanwhile, it will help students to further study advance knowledge in economy and statistics.
Economic Law (3 Credits)
This course focus on the fundamental legal theories and principles related to economics. It includes an introduction to law and economics, an introduction to law and legal institutions, theory of property, property law, tort law, tort liability, contract law, legal process, and topics in the economics of crime and punishment. While focusing on economic law, this course adopts substantial cases for in-class discussion and after-class assignment analysis. This course will prepare students with background knowledge of economic law and develop problem-solving skills in business judgement and decisions.
Microeconomics I (3 Credits)
This course introduces the basic concepts, framework and theories of microeconomics. The topics cover market and equilibrium, demand and elasticity, supply and cost, efficiency and the working of the “invisible hand.” This course will also talk about the behaviors of firms in imperfectly competitive markets, for example, monopoly and oligopoly. Students are expected to apply the basic theories to understand and explain some economic phenomena and activities observed in society.
Microeconomics II (3 Credits)
This course is a continuation of Microeconomics I. It extends topics of Microeconomics to cover games and strategic behavior, the economics of information, externalities and property rights, labor market, poverty and income distribution, the environment, health and safety, public goods and tax policy. Students are expected to apply the basic theories to understand and explain some economic phenomena and activities observed in society. Based on their analysis and relevant economic decision rules, optimal choice or policy proposal may be recommended.
Macroeconomics I (3 credits)
Macroeconomics studies the economy as a whole. It will include such topics as GDP, unemployment, inflation, exchange rate, and other macroeconomic indicators. AD-AS model, economic fluctuations and economic growth, open economy, monetary policy, and fiscal policy will also be covered. The objective of this course is to give the students a basic understanding of the theories and methods of macroeconomics, and to provide them with an analyzing of the macroeconomic issues. After learning this course, students will be able to apply some basic graphical macroeconomic models to analyze and understand some macroeconomic events and policies in the real world.
Macroeconomics II (3 Credits)
This course is a continuation of Macroeconomics I. It introduces to the students theories of alternative arguments and key concepts of macroeconomics with knowledgeable macroeconomic statistics, so students can find their own answers to the questions concerning the national economy and the global economic system. Upon successful completion of this course, students will be able to apply some both graphical and quantitative macroeconomic models to analyze and understand some macroeconomic events and policies in the economic history. Policy suggestions and strategies may be proposed accordingly.
Econometrics I (3 Credits)
This course is an entry-level econometrics course. This course introduces the linear regression model and discusses estimation and testing under (mostly) ideal conditions. While focusing on cross-sectional techniques, this course includes techniques for estimating linear regression models, techniques for problems commonly encountered in estimating OLS models, and how to interpreting the estimates from such models.
Econometrics II (3 Credits)
This course is a continuation of the econometrics sequence. This course looks at what happens when the conditions are less than ideal due to departures from the assumptions necessary for ordinary least squares to be the best linear unbiased estimator. The course then provides alternative regression techniques that address problems arising from the violations of the basic assumptions. Time series analysis and panel data analysis will also be introduced in this course.
Mathematical Economics (3 Credits)
It is essential to analyze the quantitative relationship between various key economic variables in economics. This quantitative analysis needs mathematical tools, such as functions, equations, differential and integral calculus and optimization technologies. This course helps students to develop ability to apply fundamental mathematical tools and techniques in economic analysis.
International Economics I (3 Credits)
International economics can be commonly divided into two sections, international trade theory and international finance. International Economics I is designed to cover topics of international trade theory and policy. Topics in this course include reasons that trade takes place, the implication for commodity and factor prices of changes in real variables (such as the stock of capital and the supply of labor), the benefits that accrue from international trade, and the effects of trade restrictions on the welfare of the economy.
International Economics II (3 Credits)
Given that some topics on international trade will be covered in the courses of International Economics I, this course is designed to cover topics of international finance. International finance is a dynamic course which investigates real world issues such as balance-of-payments problems and policy, the causes of exchange-rate movements, the implications of macro-economic linkages between economics, and topics on global financial crisis. Specific topics include: Macroeconomics models, including IS-LM model and Mundell-Fleming model and models on exchange rates and the foreign exchange market (an asset approach), models on money, interest rates, and exchange rates, price levels and the exchange rate in the long run, and output and the exchange rate in the short run.
Game Theory (3 Credits)
This course is an entry-level course of game theory, focusing mainly on static games of complete information, dynamic games of complete information, static games of incomplete information and dynamic games of incomplete information. By case studies, the students can apply the analysis methods and decision-making skills they learn from this course to many scenarios in the reality.
Industrial Economics (3 Credits)
Industrial economics studies the industry development, industrial structure and changes of industrial organization rules in the national economy. The course content includes the development of the theory of industrial organization, industrial structure theory and optimization, industrial behavior and industry performance, theory of industrial development, industrial relevance theory, special industry relevant economic problems and development mechanism (such as energy industry, modern service industry, gaming industry, travel, leisure tourism industry, cultural industry, etc.), industrial agglomeration and industrial policy and government planning.
Regional Economics (3 Credits)
Regional economics introduce the spatial organization from the view of microeconomics. This course includes the city's rise and decline, micro unit location choice and spatial competition, agglomeration effects on economic activity, urban and regional economic growth, regional planning, urban problems, and regional economic policy.
Financial Economics (3 Credits)
Financial economics discuss the core theme of micro finance. This course includes how individuals invest under uncertain conditions, stochastic dominance, the risks and benefits of mean variance model, equilibrium of capital market and capital asset pricing model, arbitrage pricing theory and option pricing model, and the theme of practical application.
Monetary Economics (3 Credits)
The course is designed to cover the underlying economic explanations of why the financial system is organized as it is and how the financial system is connected to the broader economy. Monetary Economics is a dynamic course which investigates real world issues such as money and the payment system, the risk structure and term structure of interest rates, the foreign exchange market, the structure of financial system, commercial banking industry and central banking, money supply and monetary policy, monetary theories and topics on global financial crisis.
Behavioral Economics (3 Credits)
This course introduces formulating and clarifying a general understanding of Behavioral Economics. Specifically, it provides the general idea of conventional economics and how to challenge this conventional economics and explain some particular phenomena with behavioral economics theory. In general, this course aims to provide a new consideration of financial decision-making in a new light after they finish the module.
Special Topics in Economics (3 Credits)
Economic topics covered two parts of economic theory development and economic practice. The former focus on the form of the new development in the field of modern economics, such as the current view of the recent development of the game theory, incentive and mechanism design theory, company governance theory, gaming industry economics, tourism industry and economic development, economic growth theory, new institutional economics, economics frontier; the latter on the form of thematic introduced the current world and China important economic events, and the use of economic theory to make an in-depth analysis of the economic events.
Work Project (3 Credits)
Students have to complete 103 credits of study, required and electives courses combined before they start preparation for the work project in teams (usually 4 members/team) in the first semester of their 4th year. In order to produce a project report that meets basic standards of a research paper, students need pursue their supervisor's guidance and follow the standard procedures: choosing a topic, determining the methodology/analytical method, collecting, processing and analyzing data, and finally writing the paper.
Applied Economics Elective Courses
Economic History (3 Credits)
This course introduces briefly and systematically the history of human economic development from Paleolithic Era to the present, analyzes the internal mechanism of economic development and growth, reveals the underlying reasons for today’s imbalance among different parts of the world. This course will also talk about the current issues facing human being in the 21st century, such as the limit of economic growth.
Economic Forecasting (3 Credits)
The course presents an introduction of the theory and application of Time Series (TS) analysis and forecasting. In the main lecture, topics will cover Introduction to TS data, Autoregression, ADL model and forecast, Nonstationary, Dynamic Causal Effects, VAR model, Multiperiod forecasts, Cointegration, Volatility clustering and ARCH models etc. Students will join a couple of computer workshops to apply these models to analyze economic data and make forecasts. Stata or Eviews software are introduced and used in the computer workshops.
Environmental Economics (3 Credits)
Applying the theoretical thinking and empirical analysis of economics to analyze environmental pollution, climate change, water resources management and related fields, environmental economics assess the impact of social policies or activities on the natural environment. Environmental economics analyzes the environmental issues and problems global wide from the viewpoint of economics and seeks solutions in line with long-term sustainable development of human interests. The course consists of four basic components: principles of environmental economics, economics of pollution control, economics of renewable energy and non-renewable resources, as well as the study of international environmental issues and agreements.
Real Estate Economics (3 Credits)
This course is an introduction to the most fundamental concepts, principles, analytical methods and tools useful for making investment and finance decisions regarding real estate. This course exposes undergraduate students to the fundamentals of real estate finance, economics and the development decision-making process. The primary objective of this course is to help students gain insights into the fundamentals underlying real estate markets and develop an analytical framework by which students can make sound real estate investment decisions. The main emphases of the course are on theory, concept-building, financial modeling, and practical application.
Public Economics (3 Credits)
The course is the study of government policy through the lens of economic efficiency and equity. It provides a framework for thinking about whether or not the government should participate in economic markets and to what extent its role should be. Inherently, this course involves the analysis of government taxation and expenditures. The course encompasses a host of topics including market failures, externalities, and the creation and implementation of government policy. Public economics builds on the theory of welfare economics and is ultimately used as a tool to improve social welfare.
Economic Development (3 Credits)
This course first mentions about the connotation of Economic Development, also introduces the research indexes, the method of observation and analysis. Then stresses core issues in economic development from value orientation, measuring standard to basic process of economic development, including theory of economic development and different growth models by the analytical use of problem-orientated and policy-orientated. Beyond that, national issues such as poverty, population increase, urbanization in development, international issues such as international trade, strategy, balance of payment, will be introduced and discussed in this course too.
Labor Economics (3 Credits)
This course mainly discusses the general laws of labor resources, including labor demand analysis, labor supply analysis, human capital investment, labor mobility, wage determination and system design, labor market discrimination, income distribution gap, unemployment, etc. This course will adopt policy discussion in class and encourage students to propose possible solutions and optimal strategies for the labor issues in society.
Health Economics (3 Credits)
This course analyzes and discusses the efficiency, effectiveness, values and behavior patterns in the production and consumption of health care services. Specifically, this course studies the supply and demand equilibrium on healthcare market, the health economic evaluation, analysis of the health insurance market, health care financing, economic behavior and strategies of healthcare providers and pharmaceutical companies, as well as economic valuations of drugs and treatments.
Business Ethics and Corporate Social Responsibility (3 Credits)
This course discusses the theoretical basis for corporations to embrace social responsibility and the nature and scope of business ethics, corporate ethics and social responsibility from a multi-angle perspective, that is economic, legal and managerial. The main topics covered include the origin, development and current situation of corporate social responsibility in America, Europe, Japan and developing countries, the development trend of corporate social responsibility, and the social responsibility of multinational corporations, etc.
Insurance (3 Credits)
This course is to provide an introduction to the field of insurance. It summarizes the nature of pure risk on individuals and on society, and illustrates the way in which insurance can be used to deal with problems posed by such risk. Students will learn (a) the concept of risk (b) the principle of risk management, and (c) the nature and application of insurance devices.
Banking Management (3 Credits)
This course introduces the concepts, the structure of bank management and technology related to innovative financial products. The topics include government financial policy and regulations, bank organizations and structure, establishment of new banks or service, bank financial statements, bank performance evaluation, risk management, liquidity and reserves management, management and pricing of deposits services, management of non-deposits liabilities, capital management, credit policy and process, corporate credit and pricing, consumer credit service, merger and acquisition, and international banking.
This course pays special attention to the principles and practice of commercial bank operation and management. Through practical case discussion and analysis, students are guided to apply the knowledge they have learned to practice.
Financial Risk Management (3 Credits)
This course discusses the relationship between risk and return, introduces how to avoid or mitigate financial risks, including interest rate risk, credit risk, portfolio risk, risk of financial derivatives (such as forwards, futures, options and swaps), liquidity risk and operational risk, etc.
Taxation (3 Credits)
This course encompasses two parts: taxation theory and current tax systems. The focus of the former is on tax collection, which will be the basis for learning current tax systems, the core content of this course. A comprehensive introduction to the types of taxes and their key elements under the current tax systems in China and Macau SAR will be given, and their practical applications in industries, domestic enterprises and foreign-funded enterprises will be illustrated.
Financial Statement Analysis (3 Credits)
This course delivers the fundamental concepts and tools for conducting analysis of financial statements, including balance sheet, income statement, cash flow statement, analysis and calculation of financial statement ratios, and finally the comprehensive financial analysis.
Equities and Investment Analysis (3 Credits)
This course provides an overview of basic quantitative methods of security analysis and portfolio management, covering topics such as analysis and valuation of common share equity and other financial instruments, risk and return, portfolio theory, Capital Asset Pricing Model (CAPM), efficient market hypothesis and portfolio performance measures.
Fixed Income Securities (3 Credits)
This course is designed to familiarize students with various fixed-income investment instruments and markets, covering a wide array of topics including analysis tools for fixed income securities, long-term interest rates, the yield to maturity, theories of the term structure of interest rates, yield curve strategies, and immunization techniques, etc.
Financial Derivatives (3 Credits)
This course delivers the concepts and models underlying the modern analysis and pricing of financial derivatives and the major contents include fundamentals of options and futures, the basic concepts of interest-rate futures and options, option pricing models and calculating methods (including Black-Scholes and the binomial model), investment strategies of options and futures, interest rate swaps, currency options, futures and swaps, etc.
Financial Markets and Institutions (3 Credits)
This course examines the characteristics of the depository financial institutions, sources of risk, approaches of financial supervision; types of investment funds, their structures and relevant hot issues; main lines of business in investment banking and relevant market phenomena; organization and microstructure of financial markets and central bank's interventions on the financial markets.
Corporate Finance (3 Credits)
This course discusses the modern enterprise business activities on developed financial market, based on the core issue of corporate finance activities—how to raise and use of capital and explain the micro-finance theories and practices, including capital budgeting, risk and return, capital structure and dividend policy, long-term financing, financial planning, short-term finance, cash and credit management, and some special topics, such as mergers, insurance, trust and etc.
Financial marketing (3 Credits)
This course introduces the concepts, structure and related technology of financial marketing with topics including financial marketing environment, financial service consumers, identifying and targeting financial respective, development and management of financial products, branch networks and distribution, technology-driven distribution channels, pricing of financial services, financial service promotion, consumer retention and loyalty, relationship marketing, corporate financial service marketing, and financial projects. The course stresses the theories and practices of financial marketing and conducts students to apply knowledge they studied in the real situations through the real case discussion and analysis.
Financial Econometrics (3 Credits)
This course provides an introduction to the theories and applications of basic econometric analysis in the field of finance. It is designed to give students practical experience on empirical methods that are commonly employed in research. The course is roughly divided into two parts: a “theoretical” portion and an “empirical” portion. Upon successful completion of this course, students will have a solid foundation knowledge of concepts, intuition and skills necessary to have preliminary understanding of econometric studies regarding financial topics. They will be able to apply econometrics theoretical models and software to perform tests of panel data of financial ratios and time series data of the stock markets.
