M.A. and Advanced Certificate: Financial Economics (45 credits)

The basic thrust of financial economics, taught by faculty from the economics department and the School of Management, is captured by the subtitle: educating a Wall Street economist. Twenty-five years ago, this label would probably have signified someone forecasting the domestic business outlook for financial institutions.

In today's global market, "market watching" requires understanding monetary and fiscal policies, international trade and exchange rates, and the forces driving economic growth and development in all countries. The proliferation of financial instruments and strategies, such as financial futures, derivatives, hedge funds, risk arbitrageurs, securitization of liquid assets, program trading, and interest rate swaps, has also pushed economics into the center of financial operations. The operation of markets for the new instruments is based on fundamental principles of economics.

This specialization trains you to understand how these markets function, how new financial instruments are used to deal with a variety of risks, and what accounts for the interaction between domestic and international financial centers. As a graduate of the program, you will be qualified for employment as a securities dealer, a consultant, or a specialist in the finance department of any corporation, in addition to being prepared for employment in a regional bank or a Wall Street firm. Recent events demonstrate that public officials also need to understand the economics of finance.

The addition of a related quantitative track, offered with the cooperation of the Department of Mathematics, stems from the need to train people who can effectively communicate with specialists and quantitative groups dealing with complex financial instruments, which have literally exploded since the mid-1980s. At the same time, there is growing need for specialists who are able to understand and communicate the implicit strategies and goals of these financial instruments to the management of their organizations. The goal of the quantitative track is to provide a deep enough foundation of appropriate economic analysis (microeconomics, macroeconomics, econometrics), along with a core of applied or practical financial analysis (corporate and international finance), and enough mathematics to understand quantitative aspects of derivatives and risk management.

Listed below are sample course plans to give students a better idea about what their coursework timetable might look like. Please note that this is for illustration purposes only. If you have any questions or concerns regarding appropriate coursework, please make sure to e-mail ecoma@buffalo.edu prior to registration.

M.A.: Thirty credit hours including the five core M.A. courses plus it is recommended, three of the courses required for the specialization but not more than two outside the Department of Economics. Successful completion of the M.A. Macro/Micro Comprehensive Examination. Note: Despite taking various Financial Economics electives, you would only confer the M.A. degree.

M.A. & Advanced Certificate: Forty-Five credit hours including the five core M.A. courses, all of the required courses, and courses from approved electives (meaning 5 classes for the advanced certificate). Successful completion of the M.A. Macro/Micro Comprehensive Examination.

Courses Required
Students entering program before 9/2004
ECO 504	Financial Analysis & Reporting
ECO 526	Financial Economics I
ECO 536	International Finance
MGF 633	Investment Management
Students entering program 9/2004 or later
ECO 504	Financial Analysis & Reporting
ECO 526	Financial Economics I (previous title: Capital Markets)
ECO 527	Financial Economics II
ECO 536	International Finance
ECO 592	Financial Risk Management
Electives
ECO 525	Money & Banking
ECO 528	Empirical Methods of Financial Economics (suggested pre-reqs: ECO 526, ECO ECO 527, ECO 580, ECO 581, ECO 592)
ECO 529	Economics of Asset Valuation (suggested pre-reqs: ECO 505, ECO 526, ECO 527)
ECO 561	Economics of Fluctuation & Forecasting
ECO 564	Economics of the Public Sector
ECO 569	Industrial Organization
ECO 570	Economics of Regulation
ECO 582	Applied Econometrics
ECO 588	Practicum in Financial Economics 1
ECO 589	Practicum in Financial Economics 2
ECO 592	Financial Risk Management (prerequisite: ECO 526)
ECO 597	Internship in Applied Economics (requires approval of M.A. program director)
MGA 606	Intermediate Financial Report (prerequisite: MGA 604)
MGA 632	Financial Statement Analysis (prerequisite: MGA 604, MGF 631)
MGF 633	Investment Management (prerequisites: MGA 604 & ECO 526)
MGF 636	Complex Financial Instruments (prerequisite: ECO 526 & MGF 633)
MGF 641	Financial Policies and Strategies (prerequisite: ECO 526)
MGF 642	Financial Planning & Evaluation (prerequisite: MGA 604 & ECO 526)
MGF 643	Strategic Financial Mgmt & Value Creation (prereq: ECO 526 & MGF 641)
MGF 656	Acquisitions Transactions
MGF 667	CL Securities (prerequisite: permission of instructor)
MGF 695	Advanced Corporate Fin. (prerequisite: MGF 641 & permission of instructor)
MGF 696	Portfolio Theory and Strategy (prerequisite: MGF 633 & permission of instructor)
MTH 558	Mathematical Finance 1
MTH 559	Mathematical Finance 2

Upon successful completion of the above 45 credit hours of coursework and passing both parts of the M.A. Comprehensive Exam, a student will confer the M.A. degree in Economics & Advanced Certificate in Applied Economics with a concentraiton in Financial Economics.

ECO 526 is now called Financial Economics I. The old course title was "Capital Markets."

Please Note:
Students who began the M.A. Program prior to Fall 2004 semester, can take either ECO 527 or MGF 633 or can take both classes to fulfill the Financial Economics Advanced Certificate requirements. However, we recommend taking the ECO 527.

Students entering the program Fall 2004 or later, must take ECO 527 & ECO 592 to fulfill the Financial Economics Advanced Certificate requirement. If you have questions, please contact the Asst. Director of the M.A. Program.