The use of laboratory and field experiments as a data collection method for understanding economic decisions and testing economic theories; how to design a good and valid economics experiment, the methodology of experimental design. The topics that will be studied theoretically and experimentally in the course include decision-making under risk and uncertainty, decision-making over time and related psychological phenomena/biases, market experiments, bargaining experiments, social preferences, fairness and altruism, incentive schemes and motivation, gender and economic decisions.

Joint probability distributions, moments, conditional distributions, conditional expectation function, best prediction; bivariate normal; random sampling and sampling distributions; estimation; inference; introduction to asymptotic theory. Linear regression: least squares method, simple and multiple regression; classical regression model, inference and applications. Extensions: generalized regression; nonlinear regression; instrumental variables; maximum likelihood method; specification testing.

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.

International financial markets and emerging market economies: the context, record, and recent developments; Recent developments in exchange rate and monetary policy regimes; Financial crisis in emerging markets and industrial economies: key issues and lessons; IMF: Its role, functions, and critiques; Issues surrounding public debt and sovereign defaults.

Theories of economic growth that explain differences in the level as well as the growth rate of income per capita across countries and time. Empirical research motivated by and, in return, led to the development of new models of economic growth. The Harrod-Domar, Solow-Swan growth models that focus on the role of physical capital, population growth, technical change, human capital, land and other natural resources in the growth process. The Cambridge theories of growth that focus on growth and income distribution. Productivity decline, conditional and unconditional convergence, and income distribution across countries. Endogenous growth models and the scope of institutional factors and government policies in the growth process.