Financial Economics
About the major
The major in Financial Economics is focused on the economic models used in finance, and the econometric skills needed to apply these models to financial markets and other economic data. This is an area of high employer demand in a range of diverse fields. The major can also be taken in conjunction with other majors offered by the School of Economics: Economics; Econometrics; Environmental, Agricultural and Resource Economics; or majors offered by the Business School, such as Finance, and the Faculty of Science, such as Financial Mathematics and Statistics.
Requirements for completion
The Financial Economics major and minor requirements are listed in the Financial Economics unit of study table.
Please note: students who are NOT enrolled in the Bachelor of Economics or who will not complete ECOS2001/ECOS2901 as part of a different major or program in Economics must complete the 2000 level core unit ECOS2040 Intermediate Financial Economics rather than ECOS2001/ECOS2901.
ECOS2040 Intermediate Financial Economics is a core 2000 level unit for the Financial Economics major. Completion of ECOS2001 Intermediate Microeconomics or ECOS2901 Intermediate Microeconomics Honours alone will not prepare students for the 3000 level core unit in the Financial Economics major. Where a student completes ECOS2001/ECOS2901, they will also need to complete ECOS2002 Intermediate Macroeconomics or ECOS2902 Intermediate Macroeconomics Honours before undertaking the 3000 level core unit ECOS3022 The Economics of Financial Markets.
Overlapping 1000 level core units of study
Where students are completing both a Financial Economics major and a major in Economics, Econometrics, or Environmental, Agricultural and Research Economics, where either or both of ECON1001 Introductory Microeconomics and ECMT1010 Introduction to Economic Statistics are core units for both majors, the overlapping 1000 level core unit can count towards the requirements for both majors.
Students needs to complete 6 credit points in elective units of study to make up for the overlap and ensure the required total of credit points are completed for their degree. The elective unit can be from the School of Economics electives or from Table S. For more information please refer to the Economics Degree Subject Area.
Overlapping 1000 level core units of study in School of Economics and Business or Science majors
Some 1000 level core units in majors offered by Business and Science can be counted towards the requirements of both the relevant Business or Science major and the Financial Economics major, where there is a prohibition between the Financial Economics major core units ECON1001 Introductory Microeconomics and ECMT1010 Introduction to Economic Statistics and the relevant Business or Science units.
Students need to complete 6 credit points in elective units of study to make up for the overlap and ensure the required total of credit points are completed for their degree. The elective unit can be from the School of Economics electives or from Table S. For more information please refer to the Economics Degree Subject Area.
Unit equivalents to ECON1001 Introductory Microeconomics from Business:
- BUSS1040 Economics for Business Decision Making
Unit equivalents to ECMT1010 Introduction to Economic Statistics from Business:
- BUSS1020 Quantitative Business Analysis
Unit equivalents to ECMT1010 Introduction to Economic Statistics from Science:
- the combination of (MATH1005 Statistical Thinking with Data or MATH1015 Biostatistics) and MATH1xxx
- DATA1001 Foundations of Data Science
- DATA1901 Foundations of Data Science (Adv)
Note that students completing a Bachelor of Economics, Bachelor of Economics and Bachelor of Laws, or Bachelor of Economics and Bachelor of Advanced Studies should always complete the core units for the Economics program and Financial Economics major, ie in this case ECON1001 Introductory Microeconomics and ECMT1010 Introduction to Economic Statistics.
Learning outcomes
| No. | Learning outcome |
|---|---|
| 1 | Demonstrate an advanced understanding of the principles of microeconomics and macroeconomics and their application to financial markets. |
| 2 | Critically evaluate models that explain pricing in financial markets using an economic framework. |
| 3 | Critically analyse financial economic data using appropriate statistical models. |
| 4 | Demonstrate an understanding of the foundations for market outcomes in financial markets and associated asset pricing rules such as CAPM and arbitrage free pricing. |
| 5 | Clearly communicate the results and implications of sophisticated economic and econometric analysis of financial markets. |
| 6 | Work independently and collaboratively to construct and defend a valid economic argument. |
Advanced coursework
The Bachelor of Advanced Studies within the School of Economics provides students with a cohesive program in advanced studies in Economics. The advanced coursework units provide students with advanced theoretical knowledge and skillsets for analysing macroeconomic policy issues and practice in Australia and internationally. They equip students with an understanding of the fundamentals of modern models of corporate finance and governance. The project units will develop communication and research skills, and allow students to apply their knowledge to a real world or policy related problem, with the opportunity to collaborate with industry partners.
Requirements and units of study for advanced coursework can be found on the Financial Economics advanced coursework units of study page.
Contacts and further information
School of Economics: sydney.edu.au/arts/economics
Email:
Example Pathways
Financial Economics pathway to major
| Year and Semester | Units of Study | ||
|---|---|---|---|
| Year 1 | Sem 1 | ECON1001 Introductory Microeconomics | ECON1010 Introduction to Economic Statistics |
| Sem 2 | |||
| Year 2 | Sem 1 | ECOS2001 or ECOS2901 or ECOS2040* | |
| Sem 2 | ECMT2130 Financial Econometrics | ||
| Year 3 | Sem 1 | ECOS3022 The Economics of Financial Markets | ECOS3XXX/ECMT3XXX Financial Economics major selective unit |
| Sem 2 | ECOS3XXX/ECMT3XXX Financial Economics major selective unit |
ECOS3997 Interdisciplinary Impact in Economics | |
*ECOS2040 is for students who have NOT completed ECOS2001/ECOS2901 towards a different major or program in Economics.
Financial Economics pathway to minor
| Year and Semester |
Units of Study | ||
|---|---|---|---|
| Year 1 | Sem 1 | ECON1001 Introductory Microeconomics | ECMT1010 Introductior to Economic Statistics |
| Sem 2 | |||
| Year 2 | Sem 1 | ECOS2001 or ECOS2901 or ECOS2040* |
|
| Sem 2 | ECMT2130 Financial Econometrics | ||
| Year 3 | Sem 1 | ECOS3022 The Economics of Financial Markets | |
| Sem 2 | ECOS3XXX/ECMT3XXX Financial Economics major selective unit | ||
*ECOS2040 is for students who have NOT completed ECOS2001/ECOS2901 towards a different major or program in Economics.
Double major example pathway
Financial Economics and Economics
| Year and Semester | Units of Study | ||
|---|---|---|---|
| Year 1 | Sem 1 | ECON1001 Introductory Microeconomics | ECMT1010 Introduction to Economic Statistics |
| Sem 2 | ECON1002 Introductory Macroeconomics | ||
| Year 2 | Sem 1 | ECOS2001 or ECOS2901 | ECOS2XXX Economics major selective unit |
| Sem 2 | ECOS2002 Intermediate Macroeconomics | ECMT2130 Financial Econometrics | |
| Year 3 | Sem 1 | ECOS3022 The Economics of Financial Markets | ECOS3XXX/ECMT3XXX Financial Economics major selective unit |
| Sem 1 | ECOS3XXX/ECMT3XXX Economics major selective unit | ECOS3XXX/ECMT3XXX Economics major selective unit | |
| Sem 2 | ECOS3XXX/ECMT3XXX Financial Economics major selective unit | ECOS3XXX/ECMT3XXX Economics major selective unit | |
| Sem 2 | ECOS3997 Interdisciplinary Impact in Economics | ECOS3998 Industry and Community Project | |