Center of Excellence in Higher Education
The First Private University in Bangladesh

Program : MS in Economics


The MS in Economics is a rigorous graduate program that equips students with deeper understanding of economic theory, and is primarily designed for transition to doctoral programs in economics. There are several streams of specializations.

✦  International Economics

✦  Financial Economics & Banking

✦  Development Economics

✦  Environmental and Natural Resource Economics

✦  Econometrics

Emphasis is placed on the two core areas of micro and macro, while fostering skills in advanced quantitative techniques. The program is 39 credit hours in length and typically includes a thesis or research. Some students may require up to 9 credit hours (within the 39 credit hours) in foundation courses, depending on background.  A student has to maintain a minimum CGPA of 2.75 (on a 4 point scale) for graduation.

Foundation Courses 
(as required):
0-9 Credits
ECO 511 Microeconomic Analysis
ECO 512 Macroeconomic Analysis
ECO 514 Quantitative Techniques for Economic Analysis
Core Courses: 12 Credits
ECO 501 Mathematical Economics
ECO 502 Econometric Method
ECO 503 Microeconomic Theory
ECO 504 Macroeconomic Theory
Courses for Specialization: 6 Credits
  a) International Economics

ECO 611 International Trade Theory

ECO 612 International Financial Economics

b) Financial Economics and Banking

ECO 621 Financial Economics OR

ECO 612 International Financial Economics

ECO 622 Banking and Financial Institutions

c) Development Economics

ECO 631 Development Economics

ECO/DEV 570 Advanced Methods in Development Research

d) Environmental and Natural Resource Economics
ECO 641 Economics of Exhaustible Resources
ECO 649 Special Topics in Environmental Economics
e) Econometrics
ECO 651 Panel and Limited Dependent Variable
ECO 652 Time Series Model
Elective Courses: 6 Credits
ECO 681 Advanced Mathematical Economics
ECO 682 Contemporary Economic Ideas*
ECO 683 International Trade Policy
ECO 684 Monetary Economics
ECO 685 Quantitative Modelling
ECO 686 Game Theory
ECO 687 Agricultural Economics
ECO 688 Applied Econometric Forecasting
ECO 689/DEV567 Project Analysis and Evaluation
ECO 691 Selected Readings in Economics
ECO 692 Special Topics in Economics

Students may be allowed to take no more than one course from the following list: DEV 571, DEV 572, DEV 574, DEV 575, DEV 576, DEV 577, DEV 578, FIN 637, FIN 642, FIN 643, FIN 644, FIN 646, FIN 647, FIN 650, REM 602 or other DEV courses approved by the department.

* ECO 682 is compulsory for students with no coursework background in economic thought.

Research/Thesis Courses: 6 Credits

ECO 699: Thesis


ECO 695: Research Based Term Paper


ONE other 600 level course from Economics

Course Description
Foundation Courses:
Microeconomic Analysis: Theory of choice and its application to consumer and producer behavior, theory of production and cost, output and input markets and their structure, equilibrium and efficiency, market failure, and introduction to general equilibrium.
3 credits
Macroeconomic Analysis: Mainstream models in macroeconomics-classical models, Keynesian model, introduction to neo-classical and neo-Keynesian economics, consumption and investment analysis, IS-LM models of closed and open economies, AD-AS model, inflation and unemployment, basic growth theory, macroeconomic policy debates.
3 credits
Basic Quantitative Techniques for Economic Analysis: Probability and probability distribution, sampling distribution, estimation, hypothesis testing, multivariate differential calculus, simple and multiple regression, and additional topics in regression (Multicollinearity, Heteroscedasticity, Autocorrelation, Non linearity etc.).
3 credits
Core Courses:

Mathematical Economics: This course addresses the applications of calculus and linear algebra in economics. The discussion will include mathematical concepts like optimization, linear algebra, matrix, comparative statics in utility and/or profit maximization, input output modeling, envelope theorem, duality etc. Topics also include optimization with inequality constraints, production functions, consumer demand theory, competitive market theory, behavior under uncertainty, risk aversion, intertemporal choices, general equilibrium, and welfare theorems.
Prerequisite: ECO 514 or ECO 244 and ECO 301 or equivalents

3 credits


Econometric Method: This is the first graduate course in Econometrics. There will be a balance between theory and applications. The first half of the course will be mostly theoretical. The later segment of the course is applied, in the sense that it deals with real data sets and real problems. Computer work is an integral part of the course. An important way in which econometrics differs from statistics is that econometrics focuses on links between economic theory and statistical analysis. In particular, this course will emphasize the kinds of inferences that can and cannot be drawn from statistical analysis, particularly from cross-section data. Understanding when to use particular methods and what conclusions you can draw is as important as understanding how to do the analysis. You are required to use EViews, STATA or SAS to solve data related assignments.
Prerequisite: ECO 514 or ECO 372 or equivalents

3 credits


Microeconomic Theory: The course is about analyzing problems in microeconomic theory at the beginning graduate level. Students successfully completing the course will be able to comfortably work standard problems in microeconomic theory using calculus based techniques and methods. Topics to be covered may include the theory of the consumer, theory of the firm, market equilibrium, general equilibrium, welfare measurement, market structures, risk and uncertainty and information economics.
Prerequisite: ECO 501 and ECO 511 or ECO 244 or equivalents

3 credits


Macroeconomic Theory: This is a graduate level one semester compact course on macroeconomics, which provides an advanced treatment of macroeconomic theory and policy. In this course, students will develop analytical skills in solving and constructing macroeconomic models. The advanced topics covered will include topics such as: the Solow growth model, infinite horizon and overlapping generations models, endogenous growth model, the real business cycle model, unemployment and inflation. The course assumes a prior knowledge of undergraduate macroeconomics (ECO 104 and ECO 204) or ECO 512. It entails extensive use of calculus, algebra and graphs.
Prerequisite: ECO 512 or ECO 204 or equivalents

3 credits

Field Courses:
a) International Economics

International Trade Theory: This course offers advanced treatment of trade models as well as incorporates new developments in international trade theory. Topics include preliminaries of two sector models, advanced treatment of Heckscher-Ohlin-Samuelson model and HOV, many goods and factors, trade in intermediate inputs and wages, increasing returns and Gravity Equations, gains from trade and regional agreements.
Prerequisite: ECO 328 or equivalents

3 credits


International Financial Economics: This course offers an advanced treatment of the financial and macro aspects of International Economics. Topics include : various concepts and measurement of exchange rates, traditional and modern theories of exchange rate determination, expectations and exchange rate dynamics, effectiveness of devaluation, monetary approach to balance of payments, Krugman’s model of balance of payments crisis, hedging exchange rate risk - futures, options and currency swaps, multinational corporations and foreign direct investment, international financial markets, role of international financial institutions, financial crisis, and objective analysis of recent issues in international financial system and common currency.
Prerequisite: ECO 204 or ECO 328 or equivalents

3 credits

b) Financial Economics and Banking

Financial Economics: This course addresses the basic and some of the advanced issues of Financial Economics ranging from discussions of basic concepts of Financial Economics like expected utility theorem, choice under uncertainty, pure exchange economies, preference representation and risk aversion and also the characteristics, and valuation techniques and macroeconomic implications of basic financial assets, like bonds, equities and different types of financial derivatives. Other topics include risk, arbitrage, law of one price, capital asset pricing model (CAPM), financial markets, emerging financial markets, efficient market hypothesis, explaining anomalies in theory, behavioral finance, and real options.
Prerequisite: ECO 204 or equivalents

3 credits

Banking and Financial Institutions: This course addresses the basic aspects of financial institutions. Topics include discussions on all standard financial institutions with an emphasis to commercial banks. Discussion includes Mutual funds, Insurance companies, Leasing firms, Credit unions and nonprofits, Investment banks, Hedge funds, Commercial bank operation, balance sheet and off balance sheet activities, Bank performance, Agency problem and compensation package, Bank regulation, Interaction with central bank, Lending and deposit operation, Risk management and Hedging.
3 credits
c) Development Economics

Development Economics: This is an advanced course on economic growth and development. It offers an analytical exposition of selected topics in growth theory and development economics. It covers neoclassical and new growth theories and their relevance to understand the dynamics of developing economies. The course also provides a modern treatment of some of the traditional theories of growth and development. Finally, it covers some current applied issues in development. The course assumes a prior knowledge of a first course in development economics as well as a sound understanding of intermediate level micro and macroeconomics. It entails an extensive use of calculus, algebra and graphs.
Prerequisite: ECO 350 or equivalents

3 credits


Advanced Methods in Development Research: The main objective of this course is to lay the philosophical and methodological foundations of development research, both qualitative and quantitative. The course focuses on the bivariate and the multivariate analysis such as multiple regressions, analysis of variance and experimental designs, canonical correlation, multiple classification analysis and path analysis in the context of development research. Furthermore, stochastic statistical method such as Markov Chain Analysis and Cohort Analysis will be covered. For qualitative methods, the course begins with a critical appraisal of participatory method and focus group discussions, and focuses on thick narratives, case study method, and content analysis. Other recent methodologies used in development research will also be covered.
Prerequisite: ECO 173 or equivalents

3 credits

d) Environmental and Natural Resources Economics 

Economics of Exhaustible Resources: Topics include resource allocation under externality, intertemporal equilibrium, ecological and environmental models, production of depletable resources, optimal depletion of exhaustible resources, taxation of exhaustible resources, price movements in resource market, and laws and rules related to conservation of natural resources of Bangladesh.
Prerequisite: ECO 303 and ECO 244 or equivalents

3 credits


Special Topics in Environmental Economics: This course deals with the economics of pollution, taxation and optimal pollution, standards, taxes and subsidies, marketable permits for emission trading, pollution-control policy in mixed economy, global pollution policy and a set of case studies and policies on environment in the developing countries.
Prerequisite: ENV/ECO354

3 credits

e) Econometrics

Panel and Limited Dependent Variable: Topics include advantages and disadvantages of panel data, different kinds of static panel estimation such as fixed-effects, random-effects, and random coefficients model, dynamic panel data models such as Arelano-Bond, rationale for nonlinear models, binary choice models such as logit, probit, and tobit estimation, latent variable, sample selection, and Heckman’s two step method.
Prerequisite: ECO 502

3 credits


Time Series Model: Topics include dynamic regression models, univariate time series models such as AR, MA, and ARMA, trend and difference stationary models, time series models of heteroscedasticity such as ARCH, GARCH, EGARCH, Kalman filter, stationary dynamic systems such as VAR, impulse response function, non-stationary dynamic systems, unit root, cointegration, and error correction model.
Prerequisite: ECO 502

3 credits

Elective Courses:

Advanced Mathematical Economics: This course addresses basic and some of the applications of advanced mathematical concepts in Economics. The course starts with necessary discussion on real analysis. After proper foundation the course develops into nonlinear programming applied to standard utility and/or production maximization. Topics on economic dynamics like dynamic market models, dynamics of inflation and unemployment, overlapping generation models, and stochastic calculus with special application to economics (portfolio allocation, risk-return calculation etc.) will also be included.
Prerequisite: ECO 501

3 credits

Contemporary Economic Ideas: The course is designed to study contemporary economic ideas, methodology and issues. The course is expected to cover the development in microeconomics, macroeconomics, heterodox economics, evolutionary economics, and new institutionalism. Besides these, the course is also designed to deal with contemporary issues including Islamic economic thought. Lastly, but not the least, students will have a lecture on the philosophy of economics.
3 credits

International Trade Policy : The course applies the theory of international economics to the problems of policy design such as import tariffs and dumping, import quotas and export subsidies, political economy of trade policy, trade and endogenous growth, multinationals and organization of the firm, trade and environment, trade and labor standard, and the WTO.
Prerequisite: ECO 328

3 credits


Monetary Economics: Topics include empirical evidence on money and output, money in a general equilibrium framework, money and transactions, money and public finance, money and output in the short run, money and the open economy, the credit channel of monetary policy, discretionary policy and time inconsistency, monetary policy operating procedures, and interest rates and monetary policy.
Prerequisite: ECO 304

3 credits

Quantitative Modeling: Purposes of Model Building; theoretical basis for different traditions of modeling. Construction and simulation of (a) Econometric models, (b) Input Output models and (c) Computable General Equilibrium (CGE) models. Knowledge of computer use is a logical requirement for this course.
3 credits

Game Theory: Topics include Static Games of Complete Information: Normal Form Representation of Games; Dynamic Games of Complete Information; Dynamic Games of Complete and Perfect Information: Two-Stage Games of Complete but Imperfect Information; Sub game Perfection, Repeated Games; Dynamic Games of Complete but Imperfect Information; Static Games of Incomplete Information: Static Bayesian Games and Bayesian Nash Equilibrium; Dynamic Games of Incomplete Information: Introduction to Perfect Bayesian Equilibrium; and Signaling Games.
Prerequisite: ECO 303

3 credits


Agricultural Economics: Topics include Household Economics; Migration and Rural Labor Market; The Rural Land Market and Physical Constraint to Growth in Agricultural Production; Analysis of Agricultural Production System: Understanding Production Issues, Stagnation in Backward Agriculture, Tenancy and Efficiency, Technology, Ecology and Productivity; Market Structure, Marketing Issues and Agricultural Price Formation; Agrarian Relations; Risk and Insurance in an Agricultural Economy; and Issues in Macroeconomics and Agriculture.
Prerequisite: ECO 303

3 credits


Applied Econometric Forecasting: Topics include basics of forecasting, modeling and forecasting trend, modeling and forecasting seasonality, characterizing cycles, modeling cycles: MA, AR, and ARMA models, forecasting cycles, forecasting with regression models, evaluating and combining forecasts, unit roots, stochastic trends, ARIMA forecasting models and smoothing, and forecasting macro economy of Bangladesh.
Prerequisite: ECO 372

3 credits


Project Analysis and Evaluation: This course deals with project choice, institutional framework, and cost-benefit analysis. It also covers measuring of profitability of a project under different goals, framework of project proposal, logical framework analysis, and project monitoring with special reference to project proposal system used in Bangladesh
Prerequisite: ECO 101 and ECO 104

3 credits

Selected Readings in Economics: A subset of selected textbooks written by reputed economists are reviewed. Books include Adam Smith: Wealth of Nations; Karl Marx: Capital Vol. 1; Alfred Marshall: Principles of Economics, Thorstein Veblen: Theory of Business Enterprise; J M Keynes: The General Theory; Milton Friedman: Capitalism and Freedom; Ronald Coase: The Problem of Social Cost; James Buchanan: Calculus of Consent; Joseph Stiglitz: Globalization and Its Discontent; and Paul Krugman: Peddling Prosperity.
3 credits
Special Topics in Economics: This is a general topic course to meet the special demand for students which may change from semester to semester depending on the need of students and the availability of expert.
3 credits
Research Courses:
Research Based Term Paper: Students willing to complete MS without thesis must submit a supervised research paper in the field of his/her choice with prior approval of the Chairman of the Department. This will be graded by the supervisor.
3 credits

Thesis: A thesis must be an original research of publishable quality. There shall be a thesis supervisor who shall guide the student to complete the research. A thesis must be defended in person by the student in front of a Thesis Examination Committee consisting of 3 to 5 members. Supervisor will serve as the Chairman of the Committee. Thesis defense is open to all interested persons. A student with minimum CGPA of 3.5 is eligible for taking Thesis with prior approval of the Chairman of the Department.

6 credits

Course Outline

Available with respective faculty member.