NTU Undergraduate Economics

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Course Outline

HE0201 The Singapore Economy (3 AU)

Course Content​

  • Microeconomic Principles and Economics Thinking in Public Policies
  • Key Macroeconomic Indicators
  • 50 Years of Economic Transformation
  • Trinity Development Theory and Singapore Economic Development
  • Fiscal Policy in Singapore
  • Monetary Policy in Singapore
  • Retirement financing in Singapore
  • Healthcare financing in Singapore
  • Wage Policy and Crisis Management
​HE1001 Microeconomic Principles (3 AU)

Course Content

  • Introduction (Preliminaries)
  • Supply and Demand
  • Consumer Theory
  • Production Theory
  • The Cost of Production
  • Profit Max and Competitive Supply
  • The Analysis of Competitive Markets
  • Monopoly
  • Pricing with Market Power, Monopolistic & Oligopolistic Competition
  • Game Theory
HE1002 Macroeconomic Principles (3 AU)

Course Content

Macroeconomics is the study of issues that affect the economy as a whole.
  • This course starts with the definition and measurement of three major concerns in macroeconomics: national output, unemployment and inflation.
  • The core of the course explores three important questions: What causes unemployment? What causes inflation? And what are the impacts of fiscal policy and monetary policy on short-run output?
  • In addition, you will be introduced to the determinants of long-run economic growth and the macroeconomic impact of exchange rate and foreign trade
HE1003 Basic Mathematics for Economists (3 AU)

​Course Content

  • One Variable Calculus I: Foundations
  • One-Variable Calculus II: Applications
  • Calculus of Several Variables
  • Exponential and Logarithmic Functions
  • Integration and Its Applications
  • Differential Equations
  • System of Linear Equations
  • Matrix Algebra
  • Determinants
HE1004 Introduction to Statistical Theory and Methods (3 AU)

Course Content

The main topics covered are:

  • Probability
  • Random Variables and Statistical Distributions
  • Sampling Distributions
  • Estimation and Hypothesis Testing
  • Linear Regression
HE1005 Introduction to Probability and Statistical Inference (3 AU)

Course Content

Please note that this is a preliminary outline. It is subject to changes.
 
The course covers the following topics:
  • Elements of Probability
  • Elements of Statistical Inference
  • Statistical Inference
HE2001 Intermediate Microeconomics (3 AU)

​Course Content

  • Welfare economics: public choice
  • Welfare economics: utilitarianism
  • Consumers’ and producers’ surplus
  • Competitive equilibrium and effect of government policies
  • Externality
  • Common property and public goods
  • Risk and uncertainty
  • Adverse selection
  • Signaling
  • Moral Hazard
  • Auction
HE2002 Intermediate Macroeconomics (3 AU)

Course Content

  • Macroeconomic measurement and data
  • The labor market
  • Economic growth
  • Consumption and saving
  • Investment
  • Money and interest rates
  • Financial markets
  • The real business cycle model
  • The new Keynesian model
HE2004 Introductory Econometrics (3 AU)

Course Content

  • Causality and policy making
  • Simple linear regression model and OLS estimator
  • Hypothesis tests and confidence intervals
  • Heteroskedasticity
  • Omitted variable bias and linear regression with multiple regressors
  • Test of joint hypothesis and F statistic
  • Nonlinear regression functions
  • Model specification and empirical/data issues
HE2005 Principles of Econometrics (3 AU)

C​ourse Content

  • The nature of econometrics  and economics data
  • The simple regression model
  • Multiple regression analysis: estimation
  • Multiple regression analysis: inference
  • Multiple regression analysis: ols asymptotics
  • Multiple regression analysis: further issues
  • Multiple regression analysis with qualitative information: binary (or dummy) variables
  • Heteroskedasticity
  • More on specification  and data issues
  • Basic regression analysis with time series data
  • Further regression analysis with time series data
  • Asymptotic properties of time series OLS
HE2006 International Monetary Economics (3 AU)

Course Content

  • Introduction to the course
  • National Income Accounting and Balance of Payments
  • Exchange Rates and the Foreign Exchange Market: An Asset Approach
  • Money, Interest Rates, and Exchange Rates
  • Price Levels and the Exchange Rate in the Long Run
  • Output and the Exchange Rate in the Short Run (Part 1)
  • Output and the Exchange Rate in the Short Run (Part 2)
  • Fixed Exchange Rates and Foreign Exchange Intervention
  • The International Monetary System and Macroeconomic Policy and Coordination under Floating Exchange Rates
  • Optimum Currency areas and the Euro
HE2007 Money and Banking (3 AU)

Course Content

  • An Overview of the Financial System
  • Role and Functionns of Money
  • An Economic Analysis of Financial Structure
  • Level and Term Structure of Interest Rates
  • Banking and Management of Financial Institution
  • The Great Depression and the Global Financial Tsunami
  • Money Supply Process
  • Demand for Money
  • The Keynesian Framework and the ISLM Model
  • Aggregate Demand and Supply Analysis
  • Transmission Mechanisms of Monetary Policy
  • Money and Inflation
HE2008 Public Finance (3 AU)

​Course Content

  • Market efficiency and failures
  • Market power
  • Externalities and public goods
  • Health care
  • Retirement income provision
  • Education
  • Redistribution
  • Tax incidence
  • Tax efficiency
  • Personal income taxation
  • Taxation of capital
  • Corporate taxation
  • Government budgets
HE2009 Industrial Organisation (3 AU)

​Course Content

  • Introduction and Review
  • Game Theory and Oligopoly Models (Part 1)
  • Game Theory and Oligopoly Models (Part 2)
  • Game Theory and Oligopoly Models (Part 3)
  • Strategic Behaviour
  • Dynamic Oligopolies
  • Product Differentiation
  • Price Discrimination (Part 1) and
  • Competition Commission of Singapore
  • Price Discrimination (Part 2)
  • Product Quality
  • Vertical Restraints

​Course Content

  • Introduction and Overview
  • Economic Growth
  • Human Capital
  • Physical Capital
  • Financial Capital
  • Institutions
HE2011 Labour Economics & Labour Relations (3 AU)

Course Content

  • Theories of Labour Supply
  • Work Effort and Public Policy
  • Labour Demand
  • Labour Markets and Public Policy
  • Pay and Efficiency
  • Economic Impact of Labour Unions
  • Macro Focused Unions
  • Human Capital Investment
  • Discrimination in the Labour markets
  • Employment and Unemployment
  • Income Inequity in the Labour Markets
  • Purchasing Power of Wages
HE2013 International Trade (3 AU)

​Course Content

  • Overview of Trade in the Global Economy
  • The Ricardian Model: Comparative Advantage
  • The Specific-Factors Model
  • The Heckscher-Ohlin Model
  • Migration and Foreign Direct Investment
  • Offshoring
  • Imperfect Competition
  • Instruments of Trade Policy; The Political Economy of Trade Policy
  • International Agreements
  • Trade Policy in Developing Countries, Trade with Growth
HE2015 Macroeconomic Issues and Policies in Contemporary China (3 AU)

Course Content

  • Macroeconomic Conditions and Debates before the Reform
  • Transitional and Medium-term Designs of the Reform
  • Supplementary Measures that could help the Reform and Increase China’s Immunity and Resilience against Future Crises
  • The Transitional Reform in 2005 and the Market Response
  • Further Proposals on the Supplementary Measures
  • The Second Stage Transitional Reform and Potential Choices for the Long Term System
  • China’s Foreign Reserves, Trade Surplus, Outward Investments and Overseas Assets
  • China’s Stock Market Bubble and Lessons from the Bubble Squeezing Strategy
  • China’s Property Inflation: Microeconomic Pains, Macroeconomic Risk and Its Solution
  • Fiscal and Monetary Policies During the Global Financial Tsunami
  • From the Global Financial Tsunami to the Asset Bubbles in Asia
  • Latest Events and Challenges.
HE2020 Survey Methods and Sampling Techniques (3 AU)

Course Content

  • Probability and Statistics
  • Introduction to Sampling
  • Simple Probability Samples
  • Ratio and Regression Estimation
  • Stratified Sampling
  • Cluster Sampling with Equal Probabilities
  • Cluster Sampling with Unequal Probabilities
  • Categorical Data Analysis in Complex Surveys (If the time permits)
  • Regression with Complex Survey Data (If the time permits)
HE3001 Mathematical Economics (3 AU)

Course Content

  • Review: Calculus and Linear Algebra
  • Classical Optimization
  • Economic applications
  • Comparative Statics – Microeconomic applications
  • Comparative Statics in Macroeconomics
  • Optimization with equality constraints
  • Non-linear programming and Kuhn-Tucker conditions
  • Review of Integral Calculus
  • The notion of dynamics
HE3002 Game Theory & Applications to Social Sciences (3 AU)

Course Content

  • Definition of a “game” and strategies.

  • Dominance solvable.

  • Static games of complete information: Nash equilibrium.

  • Dynamic games of complete information: subgame perfect Nash equilibrium.

  • Static games of incomplete information: Bayes Nash equilibrium (BNE).

  • Application of BNE: auctions.

  • Dynamic games of incomplete information: perfect Bayesian Equilibrium (PBE).

  • Application of PBE 1: strategic communication and persuasion.

  • Application of PBE 2: signaling and education.

  • Repeated games.

HE3003 The Chinese Economy (3 AU)

Course Content

  • Overview of the Chinese Economy: A Long Term Perspective
  • Pre-reform Period: Socialist Economic System
  • Economic Reform and Growth Accounting
  • Rural Reform and State Owned Enterprises
  • Development of the Non-State Sector
  • Public Finance and Urbanization
  • Population, Labor, and Human Capital
  • Income Inequality and Poverty
  • Foreign Trade
  • Financial Sector Development and Reforms
  • Foreign Direct Investment
HE3004 Health Economics (3 AU)

​Course Content

  • Demand for Healthcare: Grossman Health Production Model
  • Demand for Healthcare Insurance: Expected Utility, Risk-aversion,
  • Demand for Healthcare Insurance: Asymmetric information, Moral Hazard, Adverse Selection
  • Supply of Healthcare: Market for Physician Labor, Organization of Hospitals
  • Payment models for Healthcare
  • High Cost of Healthcare: Technology Growth, Innovation, Geographic Variation
  • Health and Economic Development
  • International Healthcare Reform
  • Behavioral Aspects of Health: Rational Addiction models, Sin-Taxes
HE3005 Environmental Economics (3 AU)

​Course Content

  • Environmental and Nature Resource Economics
  • Introduction to Environment Economics
  • The Economy and the Environment
  • Economic Efficiency and Market Failures
  • Problem and Management of Externalities
  • Economics of Pollution Control
  • Environmental Valuation
  • Cost-Benefit Analysis and Project Evaluation
  • Global Environment
  • Poverty, Population and the Environment
  • Sustainable Development
​HE3007 Financial Economics (3 AU)

Course Content

  • Introduction: What is an Investment?
  • Financial System and Financial Instruments
  • How Securtities are Traded and Mutual Funds
  • Risk, Return, and the Historical Record and Risk Aversion and Capital Allocation
  • Optimal Risky Asset
  • Financial Accounting
  • Equity Valuation
  • Capital Asset Pricing Model and Technical Analysis
  • Efficient Market Hypothesis and Behavioral Finance
  • Bond Valuation
  • Options Pricing
HE3011 Cost-Benefit Analysis (3 AU)

Course Content

  • Introduction: some examples and scope of CBA 
  • Measurement of benefit and costs: welfare gains, transfer payments and double counting
    Efficiency pricing: market and non-market goods 
  • Investment decision criteria: dcf, npv, irr, bc ratio, choice of rate of discount 
  • Uncertainty and risk: probability adjustment for risk, decision rules 
  • Distributional considerations: some approaches, constraint and weight determination 
    Some examples and case studies: City subway system; Flood control project; Anti-poverty training programme; New highway project; Recreational facilities; Underwater tunnel project; Materials recycling scheme; Nuclear power programme; Not in My Backyard facilities 
HE3013 Urban Economics (3 AU)

Course Content

  • Introduction; Why Do Cities Exist?
  • Clustering and Agglomeration Economies
  • Urban Size and Growth
  • The Land Rent Model
  • Land Usage Patterns
  • Spatial Choices and  Neighborhood Effects
  • Spatial Policies and Urban Planning
  • Urban Transport and Policy
  • Economics of Education
  • Economics of Crime
  • Housing markets
HE3014 Economics of Corporate Finance (3 AU)

Course Content

  • How to value assets, in particular bonds and common stocks
  • What is the link between risk and value
  • What are the patterns of corporate financing
  • How does a firm decide on dividend payments
  • Does capital structure matter
  • How much a firm should borrow
  • How can financial ratios help to assess a firm’s performance
  • Why merges can be viewed as part of a broader market for corporate control.
HE3016 Principles of Mathematical Finance (3 AU)

​Course Content

  • Interest rates, bonds and yield curves
  • Forward and Futures contracts
  • Options
  • Binomial trees and risk neutral valuation
  • The stochastic process followed by stock prices
  • The Black-Scholes pricing formulas
  • Portfolio Theory
  • The Capital Asset Pricing Model
​HE3021 Intermediate Econometrics (3 AU)

​Course Content

  • Regression analysis: Overview
  • Basic regression analysis with time series data
  • Advanced time series topics
  • Binary choice models
  • Endogeneity and instrumental variables
  • Panel data models
HE3022 Econometric Modeling and Forecasting (3 AU)

​Course Content

  • Introduction to R
  • Forecasting toolboxes-time series graphics
  • Forecaster’s toolboxes
  • Forecast using judgement
  • Key principles
  • Forecasting using linear regression
  • Time series decomposition
  • Exponential Smoothing
  • ARIMA models
  • Dynamic regression models
HE3023 Econometric Analysis of Financial Data (3 AU)

Course Content

  • Introduction to Financial Data
  • Related Finance Theory
  • Review of Basics of Econometrics
  • Cross Sectional Models: Specification Test and
  • Heteroskedasticity.
  • Indicator Variable and Discrete Choice Models
  • Time Series: Serial Correlation
  • Time Series: Stationarity
  • Times Series: ARDL Model
  • Time Series: Cointegration
  • Time Series: Volatility Models
  • VAR Model
  • Panel Data Models
HE3024 Introduction to Applied Economic Policy Research (3 AU)

C​ourse Content

  • Economic research writing
  • Framing an economics question
  • Analyzing an economics question
  • Understanding what is the contribution to the literature
  • Application of the general framework in 1-4: The underground economy and enforcement
  • Application of the general framework in 1-4: Identifying research topics in the underground economy
  • Application of the general framework in 1-4: Identify major components of an economic policy paper.
  • Application of the general framework in 1-4:  Presenting an economics proposal
HE3025 Introduction to Data Analysis (3 AU)

Course Content

  • Stata:  Introduction
  • Stata: data cleaning
  • Stata: writing loops
  • Stata: regressions beyond OLS
  • Stata: Robustness of results
  • Drawing conclusions from the data analysis and writing up your results
HE4001 Advanced Microeconomics (4 AU)

​Course Content

  • Pareto optimality of competitive equilibrium
  • Social choice
  • External effects, environmental protection and sustainable development
  • The optimal size of public spending and the distortionary cost of taxation
  • Theories of second and third best
  • Division of labour, increasing returns, and welfare economics
  • From preference to happiness
HE4002 Advanced Macroeconomics (4 AU)

​Course Content

  • Economic growth theory
  • Economic development theory
  • Money, Finance and Long-run growth
  • International development and globalisation
  • Contemporary issues in income and firm distribution
HE4003 Advanced International Finance (4 AU)

​Course Content

  • Foreign Exchange Market and the Balance of Payments II
  • Purchasing Power Parity and Interest Parity
  • Open Economy Macroeconomics
  • Flexible Prices - The Monetary Model
  • Fixed Prices - The Mundell-Fleming Model
  • Fixed Prices - The Dornbusch Model
  • Fixed Exchange Rates - Part I
  • Fixed Exchange Rates - Part II
  • The International Monetary System - The Bretton Wood System
HE4004 Behavioral Economics (4 AU)

​Course Content

  • Introduction to Behavioral Economics
  • Prospect Theory, Reference-Dependent Preferences, Endowment Effect and Loss Aversion
  • Heuristics and Biases: Representativeness, Availability, and Anchoring
  • Framing, Mental Accounting, Reversal of Preference and Money Illusion
  • Present-Biased Preferences and Intertemporal Choice
  • Behavioral Game Theory I: Dictator Game, Ultimatum Game, Trust Game, Prisoner’s Dilemma, and Public Good Game
  • Fairness and Social Preferences
  • Behavioral Game Theory II: Mixed Strategies, Iterated and Dominance Solvable Games, Learning
HE4005 Growth Theory and Empirics (4 AU)

​Course Content

  • The Facts to be Explained & A Framework for Analysis
  • Physical Capital
  • Population and Economic Growth
  • Human Capital
  • Measuring Productivity
  • The Role of Technology in Growth
  • Growth in the Open Economy
  • Government
  • Income Inequality
  • Geography, Climate, and Natural Resources
HE4010 Singapore Economy in a Globalised World (4 AU)

​Course Content

  • 50 Years of Economic Transformation
  • Economics Thinking in Public Policies
  • Trinity Development Theory and Singapore Economic Development
  • Fiscal Policy in Singapore
  • Monetary Policy and Inflation Management in Singapore
  • Social Security System in Singapore: Retirement
  • Social Security System in Singapore: Healthcare
  • Economic Restructuring
  • Wage Policy and Crisis Management
HE4011 Current Topics in Economics (4 AU)

Course Content

  • Decision making under Uncertainty
  • Adverse Selection
  • Moral Hazard
  • Efficiency wages and related issues
  • Information issues in the labor market
HE4013 Experimental Economics (4 AU)

​Course Content

  • An Introduction to Experimental Economics
  • Choosing a Research Topic
  • Experimental design
  • Writing experimental instructions
  • Coding experiment: Z-tree
  • Analyzing experimental data
  • Student Presentation: Research ideas
  • Intertemporal Choice
  • Decision making under uncertainty
  • Public goods
  • Experimental labor market
HE4015 Personnel Economics (4 AU)

Course Content

  • Introduction and Hiring
  • Investment in Skills
  • Managing Turnover
  • Decision Making in Organization
  • Organizational Structure
  • Job Design
  • Performance Evaluation
  • Rewarding Performance
  • Career-Based Incentives
  • Other Compensations and Benefits
  • Team
  • Employment Relationship
HE4017 Monetary Economics (4 AU)

Course Content

  • Introduction of model of money
  • Demand for fiat money
  • Barter and Commodity Money
  • Inflation
  • The effects of monetary surprises
  • A model with capital
  • Central Banking
  • Money stock accumulation
  • Demand deposit and bank runs
  • Government debt
  • Savings, investment, social security
HE4018 Finance and Development (4 AU)

​Course Content

  • Financial Development: Some Conceptual & Measurement Issues
  • The Empirics of Financial Development and Growth
  • Models of Finance and Growth
  • Financial Structure: Based-based versus Market-based Systems
  • Finance for the Poor: Accessibility and Inclusiveness
  • Legal Rules and the Financial System
  • Financial Reforms and Prudential Regulation
  • The Political Economy of Financial Development
  • The Role of Local Financial Development
  • Financial Crisis
HE4020 Econometric Time Series Analysis (4 AU)

Course Content

  • Introduction to time series.
  • Fundamental concepts of time series analyses
  • Univariate time series models
  • Seasonality
  • Forecasting
  • Modeling nonstationary time series
  • Testing for nonstationarity
  • Modeling time series with time-varying volatility
  • Vector autoregressive models
  • Cointegration 
​HE4021 Advanced Econometrics (4 AU)

​Course Content

  • Overview of Multiple Regression Analysis
  • Asymptotics (1): Large Sample Properties of OLS Estimator
  • Asymptotics (2): IV and GMM Estimators
  • Heteroskedasticity and Robust Inference
  • Discrete Choice Models
  • Limited Dependent Variable Models
  • Static Panel Data Models
  • Dynamic Panel Data Models
HE4022 Empirical Strategy and Program Evaluation (4 AU)

​Course Content

  • Introduction and Overview
  • Causal Relation and Scientific Method
  • Randomized Trials
  • Non-experimental Methods: Statistical Control (Regression Analysis)
  • Instrumental Variables
  • Regression Discontinuity Designs
  • Difference-in-Difference
HE4023 Economics of Organisations and Corporate Management (4 AU)

​Course Content

  • Market versus organizations: Why do firms exists?
  • Motivation I: Formal Incentives
  • Motivation II: Informal Incentives
  • Motivation III: Competition and Internal Labour Market
  • Motivation IV: Executive and Managerial Compensations
  • Motivation V: Unintended Consequences of Incentives
  • Organization Structure I: Boundaries of the Firm
  • Organization Structure II: Strategies and Organization
  • Organization Structure III: Corporate Governance
  • Organization Failure I: Short-termism
  • Organization Failure II: (Mis-)Allocation of Authority
​HE9091 Principles of Economics (4 AU)

​Course Content

  • Introduction to Economics
  • Elasticity and Consumer Behaviour
  • Perfect Competition, Production and Efficiency
  • Imperfect Competition and Game Theory
  • Externalities, Property Rights and Economics of Information
  • Economics of Public Policy
  • Gross Domestic Product (GDP) and Inflation
  • Unemployment and Economic Growth
  • Capital Formation, Financial Markets and Money Supply
  • Aggregate Expenditure and Stabilization Policy
  • Aggregate Demand, Aggregate Supply and Macroeconomic Policy
  • Exchange Rate, International Trade and Capital Flow
​HE9092 Economic Theory (4 AU)

​Course Content

  • Demand and Supply
  • The Theory of Consumer Behaviour (I)
  • The Theory of Consumer Behaviour (II)
  • The Theory of the Firm
  • Factor Markets
  • Externalities, Public Good and Welfare
  • National Income Accounting
  • Economic Growth
  • Aggregate Demand and Aggregate Supply
  • Inflation and Unemployment
  • Spending, Money, Interest and Income
  • Monetary and Fiscal Policy
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