University of Sydney Handbooks - 2013 Archive

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Financial Economics

This major is only available to students enrolled in the Bachelor of Economics and related combined degrees.

Financial Economics provides a valuable understanding of the economic models used in finance as well as the econometric skills to apply the models to financial markets. The major also focuses on the development of technical skills to analyse financial and economic data and events. The major in Financial Economics is not intended to be a substitute for the Finance major nor the Economics major. Some students may find the proposed major would be a good complement to the Finance major offered by the Discipline of Finance. Students wanting to work in the finance sector should consider doing the Finance major.

Students are able to complete a major in Finance, Economics, Econometrics or Financial Mathematics (among other options), alongside a major in Financial Economics; however, no subjects, at the senior level, can be double counted towards two different majors.

For the award of a major in Financial Economics, students complete:

(i) four junior prerequisite units of study (24 credit points), as follows:

  • ECMT1010 Business and Economic Statistics A
  • ECMT1020 Business and Economic Statistics B
  • ECON1001 Introductory Microeconomics
  • ECON1002 Introductory Macroeconomics.

(ii) three compulsory senior units of study (18 credit points), as follows:

  • ECOS2002 Intermediate Macroeconomics; OR ECOS2902 Intermediate Macroeconomics Honours#
  • ECMT2130 Financial Econometrics *
  • ECOS3022 The Economics of Financial Markets.

* This unit requires the completion of ECMT2110 Regression Modelling as a prerequisite.

# Where students are completing both an Economics and a Financial Economics major, an additional senior elective (ECOS2000 or ECOS3000 level) should be completed for one of the majors, as Economics and Financial Economics both require the compulsory unit ECOS2002/ECOS2902. Both majors must include 36 senior credit points without counting a senior unit i.e. ECOS2002 towards two separate majors.

(iii) a minimum of three senior elective units of study (18 credit points) selected from the following:

  • ECMT3130 Forecasting for Economics and Business
  • ECMT3150 The Econometrics of Financial Markets
  • ECOS3007 International Macroeconomics
  • ECOS3010 Monetary Economics
  • ECOS3019 Capital and Dynamics
  • ECOS3021 Business Cycles and Asset Markets
  • MATH3075 Financial Mathematics; OR MATH3975 Financial Mathematics (Advanced).

Note: Some additional prerequisites, including ECMT2110, from outside of the major will be required for certain compulsory units and for options on the list of electives for this major.

Please check Table A for details of the unit prerequisites, corequisites and other requirements.