Financial Economics
The Financial Economics major guides students interested in a career in finance to the most useful courses in the two departments currently teaching financial topics, and makes it easier for students who have strong financial economics interests to obtain a minor or area of concentration outside mathematics or economics. Students wishing to major in Financial Economics are required to take the core economics theory courses in macroeconomics and microeconomics to provide a strong theoretical foundation. Beyond those courses, the student specializes in finance. The two departments’ offerings in Mathematics and Economics complement each other well. Economics courses reinforce the concepts of optimization and comparative statics and give students command of computational tools that are ubiquitous in the world of finance. The mathematics courses examine mathematical models and lines of reasoning used in finance.
Student Learning Goals
Understand standard micro and macro theory as they apply to finance and monetary issues.
Interest theory competency.
Facility with probabilistic reasoning in statistical and financial settings.
Understand and apply standard models of financial economics.
Be able to use Excel and Stata as analytical tools for empirical analysis.
Be able to find, assess, and analyze data to support an economic argument.
Write a convincing and well argued empirical paper that places quantitative analysis in a broader context.
Be able to communicate financial ideas orally in a clear, persuasive, and eloquent manner.
Apply theory in a Broad variety of real world Financial situations.
Requirements for the Major
| Code | Title | Credits |
|---|---|---|
| Core | ||
| ECO-101 | Principles of Economics | 1 |
| ECO-251 | Economic Approach With Excel | 0.5 |
| ECO-253 | Introduction to Econometrics | 1 |
| ECO-291 | Intermediate Microeconomic Theory | 1 |
| ECO-292 | Intermediate Macroeconomics | 1 |
| ECO-361 | Corporate Finance | 1 |
| ECO-362 | Money and Banking | 1 |
| MAT-251 | Mathematical Finance | 0.5 |
| MAT-252 | Mathematical Interest Theory | 0.5 |
| MAT-253 | Probability Models | 0.5 |
| MAT-254 | Statistical Models | 0.5 |
| MAT-353 | Probability Models II | 0.5 |
| Total Credits | 9 | |
| Code | Title | Credits |
|---|---|---|
| Collateral Requirements | ||
| MAT-111 | Calculus I | 1 |
| MAT-112 | Calculus II | 1 |
| Total Credits | 2 | |
We recommend that Financial Economics students take ECO377 Investment (if available). Students taking a Financial Economics major may have a minor or second major in Mathematics, but may not count MAT-251 Mathematical Finance, MAT-252 Mathematical Interest Theory, MAT-253 Probability Models, MAT-254 Statistical Models, or MAT-353 Probability Models II toward that major or minor. Students taking a Financial Economics major may NOT have a major or minor in Economics.
Comprehensive Exam
The written and oral comprehensive exams, designed jointly by the Economics and Mathematics departments and specifically targeted to the financial economics student, serve as a capstone as well as an assessment experience.
Suggested Route through the Financial Economics Major
| Freshman | ||
|---|---|---|
| Fall Semester | Credits | |
| MAT-111 | Calculus I 1 | 1 |
| Credits | 1 | |
| Spring Semester | ||
| MAT-112 | Calculus II 1 | 1 |
| ECO-101 | Principles of Economics 2 | 1 |
| Credits | 2 | |
| Sophomore | ||
| Fall Semester | ||
| ECO-291 | Intermediate Microeconomic Theory | 1 |
| ECO-251 | Economic Approach With Excel | 0.5 |
| MAT-253 | Probability Models | 0.5 |
| MAT-353 | Probability Models II | 0.5 |
| Credits | 2.5 | |
| Spring Semester | ||
| MAT-254 | Statistical Models | 0.5 |
| ECO-253 | Introduction to Econometrics | 1 |
| Credits | 1.5 | |
| Junior | ||
| Fall Semester | ||
| MAT-251 | Mathematical Finance | 0.5 |
| MAT-252 | Mathematical Interest Theory | 0.5 |
| ECO-361 | Corporate Finance 3 | 1 |
| ECO-292 | Intermediate Macroeconomics | 1 |
| Credits | 3 | |
| Senior | ||
| Fall Semester | ||
| ECO-362 | Money and Banking | 1 |
| Credits | 1 | |
| Total Credits | 11 | |
- 1
Co-curricular requirement for the major
- 2
May be taken in the fall of the freshman year
- 3
May be taken in the fall of the senior year
Several of the MAT courses can be delayed one year. Students beginning with MAT-100 Math Modeling and Precalculus may take MAT-100 in the Fall of their Freshman year and MAT-111 in the Spring of their Freshman year. Students beginning with MAT-010 Pre-Calc With Intro to Calculus or could follow the path below.
| Freshman | ||
|---|---|---|
| Fall Semester | Credits | |
| MAT-010 | Pre-Calc With Intro to Calculus 1 | 1 |
| Credits | 1 | |
| Spring Semester | ||
| ECO-101 | Principles of Economics 2 | 1 |
| MAT-110 | Calc I With Pre-Calc Review 1 | 1 |
| Credits | 2 | |
| Sophomore | ||
| Fall Semester | ||
| MAT-112 | Calculus II 1 | 1 |
| ECO-251 | Economic Approach With Excel | 0.5 |
| ECO-291 | Intermediate Microeconomic Theory | 1 |
| Credits | 2.5 | |
| Spring Semester | ||
| MAT-254 | Statistical Models | 0.5 |
| ECO-253 | Introduction to Econometrics | 1 |
| Credits | 1.5 | |
| Junior | ||
| Fall Semester | ||
| ECO-361 | Corporate Finance 3 | 1 |
| MAT-253 | Probability Models | 0.5 |
| MAT-353 | Probability Models II | 0.5 |
| Credits | 2 | |
| Spring Semester | ||
| ECO-292 | Intermediate Macroeconomics | 1 |
| Credits | 1 | |
| Senior | ||
| Fall Semester | ||
| MAT-251 | Mathematical Finance | 0.5 |
| MAT-252 | Mathematical Interest Theory | 0.5 |
| ECO-362 | Money and Banking | 1 |
| Credits | 2 | |
| Total Credits | 12 | |
- 1
Co-curricular requirement for the major
- 2
May be taken in the fall of the freshman year
- 3
May be taken in the fall of the senior year