Main approaches to various institutions and actors that make up the field of international political economy. Question of who gets what at a global level from a multi-actored, multi-level and mul-disciplinary perspective. Interactions between states, markets, firms, NGOs, and not-for-profit organizations at the local, national, regional, and supranational levels. Global trade, production, finance, and knowledge structures and relations in the context of international organizations, transnational corporations, global financial structures, regional integrations, North-South relations, discourses and practices of development, and problems of global poverty.
Economic reasoning; basic concepts and processes in microeconomics and macroeconomics; identification and discussion of current economic issues covered in popular economics publications.
Introduction to basic concepts and tools of game theory; Various types of games and their solutions introduced and illustrated using real-life examples; Applications to economics, business, politics, law, biology, and history; Using game theory to understand evolution of social norms such as cooperation, altruism, and reciprocity as well as other social institutions.
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.
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.
Econometric methods suitable for cross-section and panel data. Extensions of the least squares framework: generalized least squares; instrumental variables; non-linear regression; models with limited-range dependent variables; models suitable to samples subjected to selection. Maximum Likelihood method. Panel data methods: pooling of cross-section and time series data; fixed effects; random effects. Experiments and quasi-experiments. Supplemented with substantive economic applications and use of econometric software.
Econometric methods to model time series variables and tools for forecasting. Background for time series: difference equations; Models with single variables: ARIMA models; specification testing, model selection; Structural components: seasonality, cyclicality and trends; Models with multiple variables: multivariate models; Forecasting: forecasting techniques, forecast comparison and evaluation of forecasting performance. Applications from economics and business using econometric software.
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 Turkey.
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.
Theoretical and empirical examination of international financial markets. Adjustment of balance of payments and exchange rate. Effects of devaluation and macroeconomic policy under fixed and floating exchange rates. Short and long term capital flows; interest arbitrage; the Euro-dollar market. Financial Globalization and Financial Crises.
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.
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.
Theoretical and empirical examination of economic problems in urban areas. Formation and development of cities: city size and patterns of urban growth, land rent and land-use patterns within metropolitan areas. Urban problems: housing, transportation, poverty, education, crime; sorting issues. Local government spending and revenue.
Topics will be announced when offered.