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-227 | Probability & Stats I | 1 |
| or MAT-253 & MAT-254 | Probability Models and Statistical Models | |
| MAT-277 | Special Topics (Topics in Financial Math) 1 | 1 |
| or MAT-251 & MAT-252 | Mathematical Finance and Mathematical Interest Theory | |
| 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 | |
- 1
MAT-277 can only fulfill this requirement when the topic is Topics in Financial Math.
We recommend that Financial Economics students take ECO-377 Special Topics (Investments) if it is 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-227 or MAT-253 |
Probability & Stats I or Probability Models |
0.5 or 1 |
| MAT-353 | Probability Models II | 0.5 |
| Credits | 2.5-3 | |
| Spring Semester | ||
| MAT-254 | Statistical Models (unless MAT-227 has been completed) | 0.5 |
| ECO-253 | Introduction to Econometrics | 1 |
| Credits | 1.5 | |
| Junior | ||
| Fall Semester | ||
| MAT-277 | Special Topics (Topics in Financial Math) 3 | 1 |
| ECO-361 | Corporate Finance 4 | 1 |
| ECO-292 | Intermediate Macroeconomics | 1 |
| Credits | 3 | |
| Senior | ||
| Fall Semester | ||
| ECO-362 | Money and Banking | 1 |
| Credits | 1 | |
| Total Credits | 11-11.5 | |
- 1
Co-curricular requirement for the major
- 2
May be taken in the fall of the freshman year
- 3
MAT-251 (0.5 credit) and MAT-252 (0.5 credit) may be completed in place of MAT-277 Topics in Financial Math
- 4
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.
| Freshman | ||
|---|---|---|
| Fall Semester | Credits | |
| MAT-100 | Math Modeling and Precalculus | 1 |
| Credits | 1 | |
| Spring Semester | ||
| ECO-101 | Principles of Economics 2 | 1 |
| MAT-111 | Calculus I | 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 or MAT-227 |
Statistical Models or Probability & Stats I |
0.5 or 1 |
| ECO-253 | Introduction to Econometrics | 1 |
| Credits | 1.5-2 | |
| Junior | ||
| Fall Semester | ||
| MAT-253 | Probability Models (unless MAT-227 has been completed) | 0.5 |
| ECO-361 | Corporate Finance 3 | 1 |
| MAT-353 | Probability Models II | 0.5 |
| Credits | 2 | |
| Spring Semester | ||
| ECO-292 | Intermediate Macroeconomics | 1 |
| Credits | 1 | |
| Senior | ||
| Fall Semester | ||
| MAT-277 | Special Topics (Topics in Financial Math) 4 | 1 |
| ECO-362 | Money and Banking | 1 |
| Credits | 2 | |
| Total Credits | 12-12.5 | |
- 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
- 4
MAT-251 (0.5 credit) and MAT-252 (0.5 credit) may be completed in place of MAT-277 Topics in Financial Math
Senior comprehensive examinations for the Financial Economics major will be jointly written and administered by the Economics and Mathematics departments and overseen by the two department chairs. For further questions contact the Economics department chair.
Peter Mikek, chair, Economics Colin McKinney, chair, Mathematics