finanical

M.A. and Advanced Certificate: Financial Economics

(45 credits)

The basic thrust of financial economics, taught by faculty from the economics department and the School of Management, is captured by the subtitle: educating a Wall Street economist. Twenty-five years ago, this label would probably have signified someone forecasting the domestic business outlook for financial institutions.

In today's global market, "market watching" requires understanding monetary and fiscal policies, international trade and exchange rates, and the forces driving economic growth and development in all countries. The proliferation of financial instruments and strategies, such as financial futures, derivatives, hedge funds, risk arbitrageurs, securitization of liquid assets, program trading, and interest rate swaps, has also pushed economics into the center of financial operations. The operation of markets for the new instruments is based on fundamental principles of economics.

This specialization trains you to understand how these markets function, how new financial instruments are used to deal with a variety of risks, and what accounts for the interaction between domestic and international financial centers. As a graduate of the program, you will be qualified for employment as a securities dealer, a consultant, or a specialist in the finance department of any corporation, in addition to being prepared for employment in a regional bank or a Wall Street firm. Recent events demonstrate that public officials also need to understand the economics of finance.

The addition of a related quantitative track, offered with the cooperation of the Department of Mathematics, stems from the need to train people who can effectively communicate with specialists and quantitative groups dealing with complex financial instruments, which have literally exploded since the mid-1980s. At the same time, there is growing need for specialists who are able to understand and communicate the implicit strategies and goals of these financial instruments to the management of their organizations. The goal of the quantitative track is to provide a deep enough foundation of appropriate economic analysis (microeconomics, macroeconomics, econometrics), along with a core of applied or practical financial analysis (corporate and international finance), and enough mathematics to understand quantitative aspects of derivatives and risk management.

Listed below are sample course plans to give students a better idea about what their coursework timetable might look like. Please note that this is for illustration purposes only. If you have any questions or concerns regarding appropriate coursework, please make sure to e-mail ecoma@buffalo.edu prior to registration.

M.A.: Thirty credit hours including the five core M.A. courses plus it is recommended, three of the courses required for the specialization but not more than two outside the Department of Economics. Successful completion of the M.A. Macro/Micro Comprehensive Examination. Note: Despite taking various Financial Economics electives, you would only confer the M.A. degree.

M.A. & Advanced Certificate: Forty-Five credit hours including the five core M.A. courses, all of the required courses, and courses from approved electives (meaning 5 classes for the advanced certificate). Successful completion of the M.A. Macro/Micro Comprehensive Examination.

 

Courses Required
ECO 504 Financial Analysis & Reporting
ECO 526 Financial Economics I
ECO 527 Financial Economics II
ECO 536 International Finance
ECO 592 Financial Risk Management
Electives
ECO 525 Money & Banking
ECO 528 Empirical Methods of Financial Economics
(suggested pre-reqs: ECO 526, ECO ECO 527, ECO 580, ECO 581, ECO 592)
ECO 529 Economics of Asset Valuation
(suggested pre-reqs: ECO 505, ECO 526, ECO 527)
ECO 561 Economics of Fluctuation & Forecasting
ECO 564 Economics of the Public Sector
ECO 569 Industrial Organization
ECO 570 Economics of Regulation
ECO 582 Applied Econometrics
ECO 588 Practicum in Financial Economics 1
ECO 589 Practicum in Financial Economics 2
ECO 590 Monetary Theory
ECO 592 Financial Risk Management (prerequisite: ECO 526)
ECO 597 Internship in Applied Economics (requires approval of M.A. program director)
MGA 606 Intermediate Financial Report (prerequisite: MGA 604)
MGA 632 Financial Statement Analysis (prerequisite: MGA 604, MGF 631)
MGF 633 Investment Management (prerequisites: MGA 604 & ECO 526)
MGF 636 Complex Financial Instruments (prerequisite: ECO 526 & MGF 633)
MGF 637 Financial Modeling
MGF 641 Financial Policies and Strategies (prerequisite: ECO 526)
MGF 642 Financial Planning & Evaluation (prerequisite: MGA 604 & ECO 526)
MGF 643 Strategic Financial Mgmt & Value Creation (prereq: ECO 526 & MGF 641)
MGF 656 Acquisitions Transactions
MGF 667 CL Securities (prerequisite: permission of instructor)
MGF 695 Advanced Corporate Fin. (prerequisite: MGF 641 & permission of instructor)
MGF 696 Portfolio Theory and Strategy (prerequisite: MGF 633 & permission of instructor)
MTH 558 Mathematical Finance 1
MTH 559 Mathematical Finance 2

 

Upon successful completion of the above 45 credit hours of coursework and passing both parts of the M.A. Comprehensive Exam, a student will confer the M.A. degree in Economics & Advanced Certificate in Applied Economics with a concentraiton in Financial Economics.


 

M.A. and Advanced Certificate: Financial Economics (45 credits)

 

1 1/2 years (Fall Admission)
Fall (Semester 1)
Course # Title Credits
ECO 505 Microeconomic Theory 3
ECO 507 Macroeconomic Theory 3
ECO 580 Econometrics I 3
ECO 526 Financial Economics I 3
ECO 504 Fin. Analysis & Reporting 3
Macro/Micro Comp Exam (end of semester)
15 Credit Hours
Spring (Semester 2)
Course # Title Credits
ECO 527 Financial Economics II 3
ECO 536 International Finance 3
ECO 576 Topics in Microeconomics 3
ECO 581 Econometrics II 3
ECO Elective 3
Macro/Micro Comp Exam (end of semester)
15 Credit Hours
Fall (Semester 3)
Course # Title Credits
ECO 592 Financial Risk Management 3
ECO Elective 3
ECO Elective 3
ECO Elective 3
ECO Elective 3
 
Macro/Micro Comp Exam (end of semester)
15 Credit Hours
45 Credit Hours

 

M.A. and Advanced Certificate: Financial Economics (45 credits)

 

2 Years (Fall Admission)
Fall (Semester 1)
Course # Title Credits
ECO 505 Microeconomic Theory 3
ECO 526 Financial Economics I 3
ECO 580 Econometrics I 3
ECO 507 Macroeconomic Theory 3
Macro/Micro Comp Exam (end of semester)
12 Credit Hours
Spring (Semester 2)
Course # Title Credits
ECO 504 Financial Analysis and Reporting 3
ECO 581 Econometrics II 3
ECO 527 Financial Economics II 3
ECO 576 Topics in Microeconomics 3
Macro/Micro Comp Exam (end of semester)
12 Credit Hours
Fall (Semester 3)
Course # Title Credits
ECO 592 Financial Risk Management 3
ECO ECO Elective 3
ECO ECO Elective 3
ECO ECO Elective  
Macro/Micro Comp Exam (end of semester)
12 Credit Hours
Spring (Semester 4)
Course # Title Credits
ECO 536 International Finance 3
ECO ECO Elective 3
Macro/Micro Comp Exam (end of semester)
6 Credit Hours
45 Credit Hours