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MA Economics Online Curriculum 

Curriculum Overview

The curriculum in the online Master of Arts in Applied Economics teaches you how to examine real-world issues and affect economic policy so you can make changes that have a positive effect on the economy.

You will engage in on-screen problem demonstrations, interactive media, and documentary-style case studies influenced by real-world economic issues and current events.

This 30-credit-hour program consists of 10 courses and can be completed in as few as 20 months — see our detailed Course Descriptions below.

Faculty Profile: Amin Mohseni-Cheraghlou

3:25

Professor Amin Mohseni-Cheraghlou discusses what to expect from his course Introduction to Mathematical Economics and from further courses in the program.

Program Question & Answers SessionExcerpted from a live session with faculty, alums, and prospective students


Ralph Sonenshine, Director, Economics MA Programs: First, our program is designed to evaluate economic analysis from other research and certainly add to your own research. It consists of many courses where you're learning the tools of economic analysis, both micro and macro, the tools in econometrics, and then applying them to field courses such as labor and development.

We want to highlight in our program that students be working with full-time faculty that are experts in major applied fields. Those fields include development and financial management.

Second, the faculty have links to various organizations around Washington, DC, as well as other areas, including government institutions and research institutes. Students be working with the hands-on statistical software — often, but not exclusively — with Stata, in learning applied economics research. Our DC location, gives you the opportunity to explore various professional opportunities. Lastly, it's one of the few economic programs that can be done entirely online.

Question & Answer Session

Question: Why American University's MA in Economics?

Answer, from alumna Christine Higgins, now with the US Census Bureau: When I mention that I graduated from there, people recognize it immediately — they know someone who's been there, and it's just a great networking tool to have. It also gives a great background for data analysis, research with Stata, and regression analysis.

For example, in my position, I don't do a lot of the heavy data analysis. For that, you would be a mathematical statistician, who gives us the data about the regressions, the different methods they use, and the paradata. Being an AU graduate has allowed me to sort of be the liaison, and even translator, between them and the rest of my survey area who's not as familiar with those kind of terms and methods.

Question: Can you give an example of a capstone project in the economics program?

Answer, from Program Director Ralph Sonenshine: I've been extremely impressed with the creativity of our students. This one student looked at the effect of corporate tax changes on stakeholders. States actually have a corporate tax, as well as federal. So he looked within the 35 states that have changed their corporate taxes' rate, and he wanted to see the effect on company profits, pricing, wages, and government revenue. So, it's quite an ambitious paper, but one that was well done.

Other projects consisted of looking at funding versus educational outcomes. Basically, if you could think of a regression equation, your input is the amount of funding that a government puts into education. For this project, you're measuring educational outcomes, whether its number of years in school or literacy rates, so you’ll want to see if you increasing the amount of funding for education gives you better educational outcomes.

Question: What do you feel it takes for a student to be successful in the economics program?

Answer, from Program Director Ralph Sonenshine: 

First, you do need to dedicate yourself to the program. This is a top-ranked, rigorous program. It's meant to mirror our on-campus program. However, almost all of our students are active professionals, so it's certainly something that you can do while working. But, I think there is a possibility that you can lose focus during the time and other things can come up. So you want to remain focused on the program during the 20 months that you're in the program. 

Second, you have to have the ability to problem solve. You should be able to solve problems, whether mathematical or policy-oriented. You should like working at something until you can arrive to an answer. So again, dedication to the program and problem-solving is key.

Course Descriptions for Core Courses

Overview

The material learned in this online course will be used extensively in the courses that follow it. It begins with a review of logarithms and differential calculus and moves on to more complex mathematical concepts, including matrix algebra with emphasis on economic applications, comparative static analysis of linear models, introduction to multivariate differential calculus and comparative static analysis of nonlinear models.

ECON-605 in Depth

This online economics course is the foundation and preparation for all graduate studies in the MA in Economics. The material learned in this course will be used extensively in the courses that follow it. The course is usually taught by Amin Mohseni-Cheraghlou, Senior Lecturer of Economics at AU and a macroeconomist with the GeoEconomics Center at the Atlantic Council. He has been featured in international journals, and is co-author of a 2010 book titled The Militarization of the Persian Gulf: An Economic Analysis.

It begins with a review of some basic concepts from college-level algebra and pre-calculus courses before moving on to more advanced material that will be necessary for other master's in economics courses.

Concepts covered in this course will include

  • Differentiation and integration
  • Matrix algebra
  • Optimization along with differential and difference equations

Each unit within this online course begins with an introductory story problem, providing context to the concepts covered. These problems are meant to demonstrate application of the material as well as provide you with an interesting and memorable way to utilize the course content.

Course Objectives

  • Improve the mathematical skills necessary to study economics
  • Identify, solve and interpret the characteristics of each family of functions: linear, polynomial, exponential, logarithmic and quadratic
  • Analyze nonlinear functions using differential calculus
  • Demonstrate an understanding of the rules of differentiation as they apply to multivariable functions
  • Find solutions to unconstrained optimization problems by identifying relative and global maximums and minimums of single and multivariable functions
  • Find the solution for constrained optimization problems using methods of substitution and Lagrange multiplier for both equality and inequality constraints
  • Use integration and matrix algebra techniques in economic analysis
  • Analyze difference and differential equations of first and second order

In this course you will learn and review how to differentiate exponential, natural log and log functions, homogenous functions, and Euler's Theorem, as well as properties of matrices and the usage of the Cramer’s Rule.

 

Overview

This course covers the foundations of microeconomic theory, focusing on the behavior of individuals, firms, and the interaction of both in the marketplace. It examines forms of market structure and how these impact firm behavior. Students will explore the role of government in the economy and analyze the economic efficiency of an assortment of public policies.

ECON-600 in Depth

Throughout this online course you are introduced to economic policy concepts and have the opportunity to analyze and apply what you've learned by looking at a similar policy. You will probe the foundations of microeconomic theory, focusing on the behavior of individuals, firms, and the interaction of these agents in the marketplace. You will examine forms of market structure and explore how these impact firm behaviors. You’ll also learn the concept of market efficiency and investigate how a variety of imperfections (including externalities and public goods) can reduce the efficiency of the marketplace.

Professor Kara Reynolds developed and teaches this course. Her research interests include the political economy of trade protection, particularly anti-dumping protection, and the impact of trade liberalization on workers and firms — for example, her paper with Chad P. Bown, titled "Trade Flows and Trade Disputes,” in the Review of International Organizations.

Throughout this economics course you will

  • Carefully consider the role of government in the economy
  • Analyze the economic efficiency of various public policies

In ECON-600, you and fellow students will work as a learning community to improve the mathematical skills necessary in the understanding of the role of mathematics in economics.

Course Objectives

  • Derive both the individual’s and the market demand curve mathematically
  • Explain intuitively how consumers make decisions
  • Use the model of consumer behavior to demonstrate how policy changes will impact consumer choices
  • Thoroughly review the most powerful model in economics, supply and demand
  • Derive the long-run and short-run cost functions of a firm mathematically
  • Interpret how firms decide what production technologies to utilize
  • Calculate the market equilibrium price and output in a competitive market
  • Use the model of the competitive market to explain how policy changes will impact market price, output, and societal welfare
  • Calculate and examine the market equilibrium in various forms of imperfect competition
  • Explain intuitively the welfare loss that occurs because of various forms of market failures
  • Examine imperfections such as externalities, and consider ways to correct for these imperfections

You will explore topics such as the impact of taxes and subsidies on consumer and firm behavior, the impact of mergers on market prices, and the economic determinants and potential solutions to environmental problems.

Overview

This course explores theories of income determination, inflation and unemployment, business cycles and long-run growth. It also covers analysis of monetary and fiscal policy, debt dynamics and financial crisis.

ECON-601 in Depth

In this macroeconomic theory and policy course you will analyze both the long-run and short-run performance of the economy as a whole, along with various theories proposed by economists to explain that performance. We will consider the strengths and weaknesses of each theory. Professor Colleen Callahan, whose research has focused on US monetary history in the 19th and early 20th centuries, typically teaches this course. She received the 2010 Jonathan Hughes Prize for Excellence in Teaching Economic History from the Economic History Association.

Primary questions facing economists who study the long run include the following:

  • How do you explain increases in per capita income that have been sustained for well over a century in nations like the United States?
  • Why have some nations never been able to achieve rising per capita income except for brief episodes?

For economists who focus on the short run, the main questions center on the fluctuations of the economy around its long-run growth path:

  • What caused the Great Recession and accompanying high unemployment?
  • What has made the ongoing economic recovery especially weak in Europe?
  • How has the challenge of fiscal austerity and historically low interest rates affected the global economy?

To understand these phenomena, this course will examine the role of consumption, investment, the trade balance and fragility in the financial sector, along with monetary and fiscal policy.

This economics course involves

  • Blending rigorous macroeconomic theory with its practical (and often imperfect) application to problems in the world beyond the classroom
  • Investigating something like the events precipitating the most recent U.S. recession, the slow recovery and the risk of deflation in the Eurozone

Course Objectives

  • Examine the role of consumption, investment, and the trade balance and fragility in the financial sector, along with monetary and fiscal policy
  • Analyze real-world events using mainstream macroeconomic models
  • Contrast the appropriateness of monetary and fiscal policies, along with policies to promote growth
  • Solve mathematical versions of macroeconomic models and explain results using intuition and skills learned from our course in mathematical economics
  • Evaluate a variety of economic models and their limitations
  • Compare the open economy implications for policy choices to those of the closed economy

You will explore related topics including equilibrium in financial markets, the aggregate supply and aggregate demand model, the neoclassical (Solow) growth model and fiscal austerity.

Overview

Econometrics is the application of statistical and mathematical theories to economics for the purpose of testing hypotheses and forecasting future trends. This course introduces the concepts and skills to accomplish this along with the use of the statistical software, Stata.

ECON-623 in Depth

The objective of this course is to provide a thorough introduction to the theory and application of contemporary econometric tools. It caters to students from different backgrounds, necessary if you are interested in applying econometric tools to data and problems in a variety of disciplines. This course is typically taught by Professor Mahmud Yesuf, who has worked on projects with the World Bank and International Food Policy Research Institute in Africa. His research interests include poverty, the environment and development issues in low-income countries with a special focus on behavioral issues within households.

This course is the first of the two-course sequence in econometrics offered in the department for graduate degree students. The major focus of this course is to introduce you to the fundamentals of estimation and statistical inferences of a single equation linear regression model.

Emphasis will be placed on the following:

  • Understanding theory through applications and problem solving rather than mathematical theorems and complex proofs
  • Working as a learning community to improve statistical and econometric skills necessary in the study of economics

Course Objectives

  • Derive statistical parameters to estimate causal relationships
  • Estimate statistical parameters of a regression analysis using the Stata software package
  • Interpret results of regression analysis with different specifications
  • Conduct hypothesis testing at confidence intervals, then interpret the results of the test
  • Read, understand and evaluate empirical papers in professional journals written using single equation regression models

Throughout this course you will hone your understanding of linear and non-linear regression as well as other forms of economic regression with different variables.

Overview

This course advances the topic of econometrics, including the following time-series techniques: limited dependent variables models, sample selection and censoring, simultaneous equations, instrumental variables, fixed effects and panel methods, and program evaluation using quasi-experimental data.

ECON-624 in Depth

This is the second in the sequence of econometric courses offered in the department for graduate students, with the objective of providing a thorough introduction on theory and application of contemporary econometric tools. It is the follow-up to Applied Econometrics I (Econ-623) and aims to extend your contemporary econometric knowledge on time series, impact evaluation and more topics on limited dependent variable econometric models.

You will participate in computer-based exercises and learn to replicate the econometric results of published economic articles using new data and econometric tools and techniques learned in Econ 623 and 624. The data analysis process will include preparing a brief report on the replication process and any challenges faced.

This course covers

  • Emphasis on understanding theory through applications and problem solving, rather than mathematical theorems and complex proofs
  • Working as a learning community to improve statistical and econometric skills necessary in the study of economics

Course Objectives

  • Derive statistical parameters of econometric analysis conducted using cross sectional, panel, or time series data
  • Estimate statistical parameters of econometric analysis conducted using cross sectional panel or time series data using Stata
  • Interpret results of regression analysis conducted using cross sectional, panel, time or series data
  • Replicate econometric results of published articles using new data set
  • Read, understand, and evaluate empirical papers in professional journals

As a continuation of ECON-623, this course expounds on regression and explores time series econometric models for forecasting, dynamic causal effects and replicating econometric results of published articles.

Overview

The capstone project provides an opportunity to apply the knowledge and skills you have developed in a real-world scenario. In this course you will complete a project addressing a major economic issue under close consultation with a faculty advisor.

ECON-680 in Depth

This is a cumulative course requiring you to apply the knowledge you’ve developed over the duration of the MA in Economics, Applied Economics specialization program. You will complete a project addressing a major issue in economics under close consultation with a faculty member. The structure of this course is designed to hone your skills of conducting economic analysis, and you are expected to develop a testable hypothesis about a topic of interest in economics. The primary resarch interests of Ralph Sonenshine, who teaches this course, include antitrust, mergers and acquisitions, and international trade and finance, as well as economic history.

You will choose the dataset and econometric model to test your hypothesis. The final product will be a formal paper and presentation on your research. Throughout the course, you will have support for your project from both your fellow classmates and one of the esteemed members of our master's in economics faculty.

In this collective course, you will

  • Work as a learning community to improve the skills necessary to conduct original research in economics
  • Link all elements together through the completion of a semester-long research project

Course Objectives

  • Develop a clear and specific research question to which the tools of empirical economic analysis can be applied
  • Conduct a thorough review of the economic literature associated with your question
  • Adapt an economic model for your research question
  • Develop a testable hypothesis from the model
  • Find and collect data to test your hypothesis
  • Use statistical analysis to test the hypotheses
  • Interpret the statistical analysis meaningfully
  • Offer constructive criticisms to peers
  • Orally communicate findings

Each week the capstone course focuses on different areas crucial to your overall take away from the program: literature reviews, economic models, testable hypotheses and empirical strategies.

Course Descriptions for Selected Electives

Overview

Examine contemporary theories of wages, employment, and prices as well as collective bargaining. Then explore the effect of collective bargaining on wages in the American economy through theories and empirical studies of wage differentials.

ECON-673 in Depth

In this course, you will apply the tools learned in core classes to problems we all participate in—ones concerning the labor market. You’ll also begin to explain how others have used the tools. This will help you understand how you can contribute to the larger economics conversation with your original research.

The primary assignment for this course is a literature review, which will allow you to demonstrate your expertise in labor economics by summarizing work in the field. It will also help you understand how original research questions are developed.

This labor economics course will ensure that you

  • Understand why wages differ across and within occupations
  • Know why wage inequality has changed over time

Course Objectives

  • Examine the process by which workers supply labor and firms demand labor intuitively
  • Use the labor supply and demand model to predict and explain changes in wages and employment
  • Use appropriate econometric techniques to answer key questions about labor markets
  • Synthesize existing knowledge on a topic in labor economics in order to identify gaps in the literature

This course will prepare you with a confident understanding of labor supply and demand, wage structure, migration and labor unions.

This course is taught by Mary Eschelbach Hansen, an associate professor who is widely published in the fields of child welfare policy and economic history. The National Science Foundation, the National Institutes of Health, the Alfred P. Sloan Foundation, and the Institute have funded her research for New Economic Thinking.

Her research has contributed to passage of laws such as the Preventing Sex Trafficking and Strengthening Families Act. Her research has been funded by the National Science Foundation, the National Institutes of Health, the Alfred P. Sloan Foundation, and the Institute for New Economic Thinking. Published works include Bankrupt in America: A History of Consumers, Businesses, their Creditors, and the Law in the Twentieth Century.

Overview

This course covers the evolution of economics since the mid-20th century. It examines important topics in economic development and illustrates the application of economic techniques to development issues.

ECON-661 in Depth

This course explores the conditions and experiences of developing economies as well as the policies and factors that affect their economic growth and performance. It presents a conceptual framework to help you discern the sources of successful and not-so-successful economies, as well as scrutinizes important distinctions between the global North and the global South. 

You will examine how the markets and institutions of low-income and middle-income countries operate, the sources of under-development, the barriers to economic growth, and the policies that local governments and stakeholders can pursue to help alleviate poverty and stimulate economic development. This course is taught by Walter G. Park, an accomplished professor who earned his PhD in Economics from Yale, has published in acclaimed journals, and is an Advisory Editor for Research Policy at Elsevier Science.

The course will help you thoroughly understand:

  • Why certain types of nations succeed economically and why others fail
  • How economic theories learned in our Microeconomics Theory and Macroeconomics Theory courses can be applicable to explaining how economies develop and how global poverty can be combated
  • The sources of productivity growth and the causes of inequality, and what to do about them
  • National laws, regulations, policies, and international treaties that affect economic development at the macro and micro levels
  • Real-world data and tools for data management

Course Objectives

  • Use the production function model to derive a country’s long-term growth rate and calculate it using actual data
  • Compute measures of income inequality and the poverty rate within countries and compare patterns of income distribution across countries and over time
  • Describe, distinguish, and critique the different models of economic development, and appraise the available evidence for them
  • Summarize and assess the arguments for and against foreign aid
  • Explain the impact of trade and foreign direct investment (FDI) on productivity growth and income distribution based on existing evidence
  • Evaluate whether openness to trade and FDI has been beneficial or harmful to less developed countries

Overview

This economics course is an introduction to the concepts of market equilibrium and efficiency, departures from the efficiency of the market, political economy of voting and rent seeking. It will cover the main public sector programs and the financing of government intervention especially through taxation and deficit financing.

ECON-642 in Depth

This course examines the key issues related to what is typically referred to as public economics and public finance. You will explore the idea that the role of government is largely due to market failures and equity considerations. While market failures and equity considerations provide the rational for government interventions, you will learn how actual interventions are determined and influenced by voting and rent seeking. After taking this course, you should be able to explain and analyze the main government interventions in the economy.

This course is taught by Professor Bernhard Gunter. Professor Gunter is an international scholar in development economics. His areas of expertise include development macroeconomics, debt sustainability analysis, and the social impact of globalization. He is also interested in analyzing poverty reduction policies, macroeconomic development strategies, and the economic challenges of climate change. His current research focuses on development issues of Bangladesh, and his work has been published in several preeminent international journals, including World Development, Development Policy Review and Third World Quarterly. He serves as the president of the Bangladesh Development Research Center (BDRC) and has continuing engagements with various international developmental organizations.

This course provides you with a strong grasp of:

  • Why economists generally favor the market to solve economic problems
  • The main justifications for government intervention, which are related to equity issues; but also due to the presence of public goods; externalities; and asymmetric information
  • How and why governments raise money, mostly via taxation, to finance their interventions

Course Objectives

  • Introduce the concepts of market equilibrium and efficiency
  • Break down departures from the efficiency of the market
  • Examine the political economy of voting and rent-seeking
  • Study the main public sector programs
  • Understand the financing of government intervention, especially through taxation and deficit financing
  • Explore the fiscal federalism and fiscal competition

 

This course leaves you with a strong handle on market equilibrium, efficiency, actual expenditures, and revenues; as well as public goods; poverty; social security; and taxation and how each relates to the economy.

Overview

This course defines the ways in which the banking and financial systems contribute to the growth and stability or instability of the economy. The course will explore the hypothesis that the development of a country’s financial system contributes to faster economic growth and is not only a product of economic growth. Microeconomic and macroeconomic aspects of financial development, including the causes and consequences of crises, determinants of bank efficiency and competition, and the connection between stability, concentration and competition will be covered. The course concludes with a look at regulatory issues such as the “Too Big to Fail” debate, Federal Deposit Insurance, Lender of Last Resort and Macroprudential policy issues.

ECON-632 in Depth

In this course, you will be studying the interrelationship between our banking, financial systems and markets, and how those systems positively or negatively affect the economy. It begins with a consideration of the hypothesis that the development of a country’s financial system contributes to faster economic growth, and is not only a product of economic growth. The online course then looks at microeconomic and macroeconomic aspects of financial development, including the causes and consequences of crises, determinants of bank efficiency and competition, and the connection between stability, concentration and competition. The final section of the course looks at regulatory issues such as the “Too Big to Fail” debate, Deposit Insurance, Lender of Last Resort and Macroprudential policy issues.

This course is taught by Professor Evan Kraft who specializes in the economics of transition, monetary policy and banking issues. His professional experience includes serving as director of the Research Department and Adviser to the Governor of the Croatian National Bank. His research includes studies of soft-budget constraints and their impacts in former Yugoslavia, macroeconomic stabilization in transition countries, banking efficiency, lending booms, deposit growth and financial stability, and monetary policy under dollarization

Competencies you are expected to demonstrate in this economics course include

  • Comprehension of professional literature
  • Basic mastery of panel-data regression techniques
  • Written presentation skills for analytical and policy issues

Course Objectives

  • Course Objectives:

  • Gain familiarity with the major theoretical explanations and empirical evidence about the causes and consequences of financial crisis
  • Understand and implement techniques of panel regression analysis on cross-country data sets and on bank data panels
  • Gain basic knowledge of models of competition and cost-function models, and apply these models to data
  • Understand issues of moral hazard, incentives, and implicit subsidies as they apply to financial system regulation through analysis of empirical literature
  • Gain active knowledge of the implications of macroprudential and regulatory tools to mitigate systemic risk from their direct and indirect effects

In this course you will fully explore the factors of financial hazards and how those hazards are prevented.