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) or the Business School (such as Finance/Financial Mathematics), as long as subjects at the senior level are not double counted towards two different majors.

Requirements for completion

A major in Financial Economics requires 48 credit points from the Unit of Study table including:
(i) 12 credit points of 1000-level units of study (ECON1001, ECMT1010)
(ii) 12 credit points of 2000-level core units of study including ECMT2130
(iii) Alternative unit (ECOS2040) for core unit of study (ECOS2001/ECOS2901) if it has already been completed for a different major/minor/program
(iv) 6 credit points of 3000-level core units of study (ECOS3022)
(v) 18 credit points of 3000-level selective units of study including 6 credit points of Interdisciplinary Project units of study.

A minor in Financial Economics requires 36 credit points from the Unit of Study table including:
(i) 12 credit points of 1000-level units of study (ECON1001, ECMT1010)
(ii) 12 credit points of 2000-level core units of study including ECMT2130
(iii) Alternative unit (ECOS2040) for core unit of study (ECOS2001/ECOS2901) if it has already been completed for a different major/minor/program
(iv) 6 credit points of 3000-level core units of study (ECOS3022)
(v) 6 credit points of 3000-level selective units of study.

First Year

ECON1001 Introductory Microeconomics introduces the key microeconomic tools that will be used throughout the major, including the concepts of scarcity, opportunity cost, marginal analysis, efficiency and market failure. Analysing financial and economic data is a crucial component of the Financial Economics major. Students will be introduced to core statistical concepts in ECMT1010.

Second Year

In their second year, students learn the microeconomic and macroeconomic theoretical tools required for the major’s 3000-level compulsory and selective units. The emphasis is on the relationship between these theories (both micro and macro) and financial markets.

In ECMT2130 students use econometric models to analyse financial data and markets. This develops the skills that enable a student to be able to critically analyse financial economic data using appropriate economic models.

Third Year

In their third year, students use the skills they have learnt in the four preceding theory units to deepen their understanding of how financial markets work, how economic factors such as asymmetric information and incomplete contracts help shape the form of debt contracts, and to better understand the role of intermediaries. The compulsory 3000-level financial economics unit, ECOS3022, is a high-level theoretical unit that will develop critical thinking in a disciplinary context. The culminating unit for the major is the combined interdisciplinary project unit. This unit will require students to demonstrate that they can choose the appropriate model to critically analyse and to provide advice.

Contact 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

1st Year

S1

ECON1001
Introductory Microeconomics

ECMT1010
Introduction to Economic Statistics

S2

 

 

 

2nd Year

S1

 

 

 

S2

ECMT2130 Financial Econometrics

ECOS2001 or ECOS2901 or ECOS2040

Financial Economics major core unit

3rd Year

S1

ECOS3022
The Economics of Financial Markets

ECOS3XXX/ECMT3XXX
Financial Economics major selective unit

S2

ECOS3XXX/ECMT3XXX
Financial Economics major selective unit

ECON3999
Financial Economics major selective combined interdisciplinary & project unit

 


Financial Economics pathway to minor

Year and Semester

Units of Study

1st Year

S1

ECON1001
Introductory Microeconomics

ECMT1010
Introduction to Economic Statistics

S2

 

 

 

2nd Year

S1

 

 

 

S2

ECMT2130 Financial Econometrics

ECOS2001 or ECOS2901 or ECOS2040

Financial Economics major core unit

3rd Year

S1

ECOS3022
The Economics of Financial Markets

 

S2

ECOS3XXX/ECMT3XXX
Financial Economics major selective unit