COMPULSORY COURSES

IKT 105 - Introduction to Economics   (3 - 0) 3

Introduction to microeconomic analysis and its fundamental concepts: consumer choice, supply and demand, elasticity, production and cost analysis. Market structures: Perfect competition, monopoly, monopolistic competition and oligopoly. Macroeconomic analysis and its fundamental concepts: national income accounting, growth, business cycles, unemployment, inflation, aggregate demand and aggregate supply. The multiplier model. Fiscal policy and the financial sector. Demand for money and the monetary policy. International trade and finance.

IKT 110 – Economic Analysis and Applications   (3 - 0) 3

Introduction to R programming. Vector, matrix definitions and R programming software. Control structures, For and While loop in R softwares, Data structures, Graphics and their interpretations. Input-output analysis. Microeconomic applications

IKT 213 - Microeconomic Theory I   (3 - 0) 3

Introduction to consumer theory. Budget constraint. Utility concept and utility maximization problem. Intertemporal budget constraint and choice, present value, interest rate and inflation. Exchange, general equilibrium and efficiency, Pareto efficiency, Edgeworth box problems. Uncertainty, expected value and expected utility, risk aversion. Introduction to producer theory, cost curves, profit maximization and cost minimization. Perfect competition and monopoly.

IKT 214 - Microeconomic Theory II    (3 - 0) 3

Non-cooperative games (extensive and normal form games) and solution concepts (dominance, minimax method, pure and mixed strategy Nash equilibria, rationalizability). Repeated games. Non-cooperative bargaining. Cooperative bargaining. Cooperative games, applications (oligopoly, information Economics, auction theory). 

IKT 233 - Macroeconomic Theory I  (3 - 0) 3

Closed-economy Macro. Macroeconomic data. Money and Inflation. Unemployment. Economic Growth. Economic fluctuations and crisis. Aggregate demand. Aggregate Supply. Macroeconomic Policy: Monetary, fiscal. Money demand and supply. Micro-based macroeconomics: consumption, investment.

IKT 234 - Macroeconomic Theory II  (3 - 0) 3

Open-economy Macro. Aggregate demand in open-economy. Foreign exchange market and determination of exchange rate. Exchange rate regimes and determination of optimal exchange rate. Current account and balance of payments. Monetary and fiscal policy in open-economy. Transfers and economic growth. Foreign exchange crisis.

IKT 253 - Statistics   (3 - 0) 3

Descriptive statistics and data summarization. Graphical analysis of data. Probability theory. Random variables. Discrete probability distributions, continuous probability distributions, normal distribution, sampling distributions. Point estimation and interval estimation. Hypothesis testing: confidence interval approach, test of significance. Applications regarding real life problems with the help of statistical software.

IKT 261 - Mathematics for Economics and Business I   (3 - 0) 3

Functions. Differentiation. Introduction to optimization. Weierstrass theorem, unconstrained and constrained static optimization (Lagrange multiplier method and Kuhn-Tucker conditions), implicit function theorem, envelope theorem and economic applications. Integrals and applications from economics.

IKT 311 - International Economics I   (3 - 0) 3

Basic international trade theories. Comparative advantage and costs. Relative prices, factor ratios and comparative advantage. The welfare and income distribution effects of trade. Economic growth and international trade. Protectionism and international trade policies. Economic integration theories. Intra-industry trade.

IKT 313 - Public Economics   (3 - 0) 3

Efficiency. Welfare theorems. Efficiency and equity. Market failures. Public goods: efficient provision of public goods, Lindahl equilibrium, private and public provisions of public goods. Externalities. Social choice: public mechanism for allocating resources, preference revelation and aggregation, majority voting and voting paradox, Arrow's impossibility theorem, the median voter. Taxation. Taxation and income distribution: efficiency, equity and taxation, personal taxation and behavior, corporate taxation and behavior.

IKT 335 - Money and Monetary Policy   (3 - 0) 3

Functions of Money. The evolution of payments systems. Money supply. Money demand. Monetary transmission mechanism. Inflation. Determination of interest rates. Determination of exchange rates. Currency substitution and dollarization. The goals and instruments of monetary policy. Political business cycles and central bank independence. Interaction of fiscal and monetary policies. Monetary policy regimes. Vulnerability dominance. Financial crises.

IKT 338 - Financial Markets   (3 - 0) 3

Basic finance concepts, financial market structures and functions, financial intermediation and regulation. Interest Rates: risk and maturity, yield curves. Asset demand; supply, demand and interest rates in the bond market. Asset pricing models, application of asset market approach to commodities markets (gold).  Efficient market hypothesis. Behavioral finance. Central Bank operations, market liquidity. Markets: money, bonds, stocks, mortgage, foreign exchange.

IKT 351 - Econometrics I   (2 - 2) 3

The ordinary least squares technique and its basic assumptions and desired properties. Bivariate and multivariate regression models and various related estimation and inference topics. The maximum likelihood estimation. Dummy variable regression. Matrix approach to classical linear regression model.

IKT 352 - Econometrics II   (2 - 2) 3

The multicollinearity, heteroscedasticity and autocorrelation problems; their practical consequences, detection and correction techniques. Econometric modeling. Non-linear regression models, qualitative dependent variables, simultaneous equation models, time series models, and various related estimation and inference topics.

IKT 462 - Mathematics for Economics and Business II   (3 - 0) 3

Systems of linear equations. Matrix algebra and applications from economics. First and second degree differential equations and difference equations and steady-state analysis. Dynamic optimization in continuous-time and discrete-time (optimal control theory and introduction to dynamic programming and Bellman equation) and economic applications.

IKT 472 - History of Economic Thought  (3 - 0) 3

An overview of the main schools of economic thought, classical economic analysis, Adam Smith, David Ricardo, John Stuart Mill, Marxian analysis, neoclassical economic analysis, Keynesian and post-Keynesian economic analysis.

 

ELECTIVE COURSES

IKT 315 - Labor Economics   (3 - 0) 3

Factors that affect labor supply and demand. Perfect and imperfect competition in the labor market. Reasons for wage differentials, compensating wage differentials, human capital model, factors behind increasing wage inequality. The definition and types of unemployment, job search model, efficiency wages, Phillips curve. The main characteristics of the Turkish labor market and the unemployment problem.

IKT 316 - Social Security and Labor Markets   (3 - 0) 3

Main concepts and principles of the social security market and the labor market. The interactions between social security and macro economic variables such as income distribution, employment, public sector borrowing requirement, interest rate, savings and investment. Evaluation of the social security reform initiatives in Turkey.

IKT 332 - International Economics II   (3 - 0) 3

Basic open-economy macroeconomic models. Balance of payments, current account, capital account, saving-investment balance in open economy.  Exchange rate market, exchange rate regimes, the determination of exchange rate. Expectations, exchange rate-interest rate relationship and uncovered interest rate parity. International monetary system, monetary union and the European monetary system. Capital flows and crises.

IKT 336 - Financial Markets and Institutions   (3 - 0) 3

Basic finance concepts, financial market structures and functions. Interest Rates: risk and maturity, yield curves. Asset demand; supply, demand and interest rates in the bond market. Efficient market hypothesis. Central Bank operations, market liquidity. Markets: money, bonds, stocks, mortgage, foreign exchange. Economic applications with emphasis on Turkish financial markets and the global crisis.

IKT 395 - Industrial Organization   (3 - 0) 3

Market structure and organization, perfect competition, monopoly, homogenous products and services markets,  differentiated products and services markets, market concentration, entry-exit and mergers. Technology and market structure, research and development, compliance and standards. Marketing, advertisement, quality, pricing and marketing strategies. The role of knowledge, management, compensation mechanisms, regulations, price discrimination and search theory. Industrial sector based analysis.

IKT 396 - Topics in Public Economics   (3 - 0) 3

Individuals and the government, fiscal functions, fiscal policy and its tools, fiscal policy and its effects on the economy. Public goods and characteristics of public goods, government expenditures, government expenditures and economic growth, government debt and its theories, stabilization policies and rules, government finance, taxation and tax system, taxation and income distribution, budget theory, the Turkish fiscal policy and system.

IKT 400 – Economics Seminar   (3 - 0) 3

Various topics regarding the Turkish and world economy: the effects of crises, inflation, unemployment, production, regulatory reform and economic policies. Discussion of reasons for economic problems and evaluation of the proposed solutions with participation and guidance by subject experts.

IKT 411 - Principles of Economic Development   (3 - 0) 3

The concept of development, indicators of development. Theories of growth; the neoclassical growth model, human capital and growth, technological progress and growth. Expectations and economic development. Inequality, the link between growth and inequality. Poverty and undernutrition. Population growth. Finance and development. Institutional quality.

IKT 415 - Game Theory   (3 - 0) 3

Normal-form and extensive-form noncooperative games under perfect information: Pure-strategy Nash equilibrium, mixed-strategy Nash equilibrium, dominant-strategy equilibrium, rationalizability, subgame-perfect equilibrium. Bayesian noncooperative games and extensive-form noncooperative games under imperfect information. Repeated noncooperative games. Noncooperative bargaining. Cooperative games. Cooperative bargaining.

IKT 416 – Experimental Economics   (3 - 0) 3

Historical origins of experimental perspective in economics. Setting and testing hypothesis. Theoretical and experimental analysis of individual’s decisions. Comparison of theoretical and experimental results in game theory. Experimental analysis of social manners, division and equity. Experimental results about public goods and coordination failures. Computer programming of experiments and laboratory applications.

IKT 417 - Welfare Economics   (3 - 0) 3

Fundamentals of welfare economics. Welfare theorems. Compensation principle and social welfare function: measurability and comparability, optimal distribution of welfare and income. Measuring welfare changes. Market failures. Social choice. Property rights and mechanisms, Coase's theorem, intergenerational equity. Preference revelation problem and empirical methods for its analysis: survey data, the Clark-Gloves mechanism, the travel cost method, hedonic prices. Cost-benefit analysis. Risk: attitudes toward risk, welfare analysis of risky projects, the value of information and irreversible consequences.

IKT 418 - Environmental Economics  (3 - 0) 3

Conventional and economic solutions to environmental problems, taxation, subsidies, emission trading. Planning: environmental risk analysis, benefit-cost analysis. Air: air quality, mobile and stationary sources, global air quality, policies for ozon depletion and global warming. Water: Water quality, point and nonpoint sources, pollution control and management. Waste and toxic substances: managing hazardous solid waste, managing municipal solid waste, controlling pesticides and toxic chemicals. Global environmental management: sustainable development, international trade and agreements, industrial ecology. The environment and development. Environmental problems and policies in Turkey.

IKT 421 - Natural Resource Economics   (3 - 0) 3

Natural resources and society.  Economic analysis of natural resources. Optimal management of renewable and nonrenewable resources. Optimal depletion of nonrenewable resources. Optimal use of renewable resources. Resource damage assessments.  Issues in resource use and allocation, the role of markets and institutions, economic policies.  Natural resources and sustainable development.

IKT 422 - Energy Economics   (3 - 0) 3

Fundamentals of energy, its resources, production, and price dynamics. Energy demand and supply. International energy markets: oil market and OPEC, natural gas market, LNG monopsony, coal market. Nuclear energy. Energy derivatives for managing risk: futures, options and swaps. Energy policies and regulations: electricity generation, transmission and distribution. Energy, environment and sustainable development. Global warming. Renewable energy resources. Managing the multicultural world of energy. The energy market and policies in Turkey.

IKT 424 - Economics of Regulation and Antitrust   (3 - 0) 3

The theory of government regulations and antitrust policies. Mergers and acquisitions, contractual arrangements, monopoly and oligopoly, price discrimination, optimal pricing, natural monopoly, rate of return regulation. Property rights and efficiency. Market failures, externalities and their implications on competitiveness. Analysis of public utilities: telecommunication, electricity and natural gas. Analysis of financial market regulations.

IKT 425-Auctions: Theory and Applications

Fundamental Auction Methods: Open and closed auctions, Private value auctions, Revenue equivalence theorem, Risk averse bidders, budget constraints, reservation price, Resale auctions, Dependent value auctions, Winner’s curse, Collusion in auctions, Multiple-object auctions, Auction design in practice, Spectrum auctions, Internet auctions, Search engine advertising auctions.

IKT 426 – Economics of Information and Mechanism Design (3 - 0) 3

This course covers some selected topics in economics of information, mechanism and contract design. After establishing the basic problems associated with the informational asymmetries among the agents participating in a strategic interaction, we ask whether optimal design of contracts, institutions and social choice rules could overcome some of these problems. Applications include optimal contracts in insurance and labor markets, optimal tax design, voting rules.

IKT 427 - Social and Economic Networks  (3 – 0) 3

The objective of this course is to introduce social network analysis concepts and methods by applying several empirical methods in the context of economic models. First, theoretical aspects are reviewed; second, attributes of the network structures are studied: diameters, small world, clustering, degree, random network, assortativity, social capital, and diffusion; Finally, R and Gephi are used to analyze and visualize economic networks.

IKT 431 - Public Finance    (3 - 0) 3

Analysis of government expenditures and public revenues, the income redistribution role of the government, the principles and techniques of taxation, government debts, the political decision making mechanism and the rationalization of the budgetary process, debt management, public finance of  municipal governments.

IKT 432 – Analytical Political Economy   (3 - 0) 3

Analysis of voter choices, Arrow’s impossibility theorem, Game theory based voter behavior and political competition models, Applications of these models to various problems. Examples: The effects of different methods on voter welfare in the finance of election campaigns; lack of voter support in welfare-enhancing policies and redistribution of income; policies against tax evasion; and the factors that determine voter support on public service policies.

IKT 434 – Turkish Economy    (3 - 0) 3

Analysis of the Turkish economy from a periodical point of view. Sectoral developments, development plans, crises and the stabilization measures, incentives, privatization, the transformation of the Turkish economy after 1980, the EU customs union process.

IKT 435 - Contemporary Issues in Turkish Economy   (3 - 0) 3

Overview of the Turkish economy from a macroeconomic and microeconomic perspective. The economic transformation in the process of financial liberalization and globalization. Macro and micro based policy analysis. Governance.

IKT 436 - Tourism Economy   (3 - 0) 3

The fundamental concepts of tourism economics, historical development of world tourism and the current tendencies, the economic effects of tourism. The organizational and sectoral structure in Turkey, policy implementations, objectives and realizations, assessments for future directions

IKT 437 - Financial Institutions (3 - 0) 3

Fundamentals of financial institutions, transaction costs, asymmetric information problem, financial development and growth, financial crises. Banks and financial institutions management, bank balance sheet and performance, banking regulations, banking crises. Mutual funds, hedge funds, insurance companies and pension funds, investment banks, brokers and dealers, venture capital firms, other finance companies. Risk management in financial institutions, hedging with financial derivatives. Special emphasis on financial institutions and the crisis experience in Turkey.

IKT 438 - Economic and Social Transformation of Turkey   (3 - 0) 3

The fundamental problems of the Turkish economy and the various approaches to these problems. Other country experiences. Maintaining the status-quo and reform alternatives. Economic and political feasibility and sustainability of reform. The impact of international relations and social development on the reform process.

IKT 441 - Applied Macroeconomics (3-0) 3

Study of selected topics from macroeconomics using basic econometric tools, and with special emphasis and applications on Turkey and the global financial architecture: business cycles, money and inflation, employment and unemployment, consumption and investment, exchange rate regimes, economic crises, asset markets.

IKT 442 - Interpreting Macroeconomic Indicators  (3 - 0) 3 

Concepts related to production, employment, and growth; internal and external balance; monetary policy; fiscal policy; concepts related to structural reforms. Basic flow-stock relations.  The interpretation of real and financial indicators and balance sheets related to these indicators.  

IKT 451 - Applied Econometrics: Time Series Analysis   (3 - 0) 3

Introduction to time series analysis, basic time series models, stationary and non-stationary processes, structural break tests, seasonality, estimation and forecasting, state-space models and data filtering methods, analysis of financial time series, conditional heteroscedasticity models .

IKT 452 - Applied Econometrics: Microeconometrics   (3 - 0) 3

Panel data analysis: the linear unobserved effects model. Nonlinear estimation techniques: the maximum likelihood method and the generalized method of moments. Some nonlinear econometric models: probit and logit models, the Tobit model, sample selection and attrition problem, estimating average treatment effects, count data and related models, duration analysis.

IKT 471 - Economic History   (3 - 0) 3

Economic development in ancient times and the agricultural revolution, economic structure in Greek and Roman periods, feudalism and economy, economic development in Medieval Europe, economic order in the world of Islam, geographic discoveries and their impact, price revolution, mercantilism, the emergence of the modern industry, industrial revolution and its social outcomes, banking and finance, economic developments in the American continent and the Far East, economic crisis and the twentieth century world economy, economic consequences of World War I and World War II.

IKT 473 - Ottoman Economic History      (3 - 0) 3

Sources of Ottoman economic history, pre-Ottoman economic structure, the Ottoman economic view of the world, the state structure, income sources and management, taxation, the feoff system, land ownership, peasant-state relations, transportation structure and trade, guilds, the Ottoman monetary and financial system, price revolution and its effects on the imperial economy, Ottoman industry during the Tanzimat period, economic and social transformation in the final periods of the Empire

IKT 481 - Analytical Writing for Economists   (3 - 0) 3

Study of selected texts and cases toward developing the skills for analytical thinking, self-expression, and employing the tools of economics for analyzing economic and social cases. Preparation of documents in the form of memos and briefs addressing hypothetical senior executives. Examination of good writing examples and different writing formats.

IKT 495 - Advanced Microeconomic Theory   (3 - 0) 3

Welfare: the concepts of fair division, cardinal and ordinal welfarism. Social choice and voting, cooperative bargaining, introduction to cooperative games and the core concept, mechanism design, auctions theory, matching theory. Introduction to behavioral and experimental (and neuro) economics.

IKT 496 - Advanced Macroeconomic Theory   (3 - 0) 3

Theoretical and empirical analysis of business cycles. International business cycles. Determinants of global crises. Optimal monetary policy, monetary models, Taylor rule. Inflation targeting, macroeconomic effects of inflation targeting. Monetary policy and fiscal policy interaction, theoretical analysis of optimal fiscal policy.

IKT 499 – Independent Research   (3 - 0) 3

 

FURTHER NOTES ON COURSE PREQUISITES

2nd YEAR PREQUISITES LIST

IKT 213

Prerequisites

IKT 105

IKT 214

Prerequisites

IKT 105

IKT 261

Prerequisites

MAT 103

IKT 233

Prerequisites

IKT 105

IKT 234

Prerequisites

IKT 233

 

3rd  YEAR PREQUISITES LIST

IKT 311

Prerequisites

IKT 213

IKT 335

Prerequisites

IKT 233

IKT 338

Prerequisites

IKT 233

IKT 351

Prerequisites

IKT 253

IKT 352

Prerequisites

IKT 351

IKT 313

Prerequisites

IKT 213

 

4th YEAR PREQUISITES LIST

IKT 472

Prerequisites

IKT 105

IKT 495

Prerequisites

IKT 213

IKT 496

Prerequisites

IKT 462, IKT 233

IKT 332

Prerequisites

IKT 233

IKT 395

Prerequisites

IKT 213

IKT 396

Prerequisites

IKT 233

IKT 411

Prerequisites

IKT 213, IKT 233

 

ELECTIVE COURSES

Course Code

Course Title

Credits & ECTS

Prerequisites

IKT 315

Labor Economics

3 and 6

IKT 105

IKT 316

Social Security and Labor Market

3 and 6

IKT 105

IKT 336

Financial Markets and Institutions

3 and 6

IKT 232 or IKT 233

IKT 400

Economics Seminar 

3 and 6

-

IKT 415

Game Theory

3 and 6

-

IKT 416

Experimental Economics

3 and 6

IKT 211 or (IKT 213 and IKT 214)

IKT 417

Welfare Economics

3 and 6

IKT 211 or IKT 213

IKT 418

Environmental Economics

3 and 6

IKT 211 or IKT 213

IKT 421

Natural Resource Economics

3 and 6

IKT 105 and IKT 462

IKT 422

Energy Economics

3 and 6

IKT 105

IKT 424

Economics of Regulation and Antitrust

3 and 6

IKT 211 or IKT 213

IKT 426

Economics of Information and Mechanism Design

3 and 6

IKT 214 and IKT 261

IKT 431

Public Finance         

3 and 6

(IKT 211 and IKT 232) or

(IKT 211 and IKT 233) or

(IKT 213 and IKT 232) or

(IKT 213 and IKT 233)

IKT 434

Turkish Economy

3 and 6

IKT 105

IKT 435

Contemporary Issues in Turkish Economy

3 and 6

IKT 434

IKT 436

Tourism Economy  

3 and 6

IKT 105

IKT 437

Financial Institutions

3 and 6

IKT 338 or IKT 336

IKT 438

Economic and Social Transformation of Turkey  

3 and 6

-

IKT 441

Applied Macroeconomics (3-0) 3

3 and 6

IKT 232 or IKT 233

IKT 451

Applied Econometrics: Time Series Analysis

3 and 6

IKT 352

IKT 452

Applied Econometrics: Microeconometrics

3 and 6

IKT 352

IKT 471

Economic History            

3 and 6

IKT 105

IKT 473

Ottoman Economic History         

3 and 6

-

IKT 481

Analytical Writing for Economists     

3 and 6

-

IKT 499

Independent Research

3 and 6

Advisor and department approval

 

 

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