ECONOMICS AND FINANCE
Economics Major
Economics Minor
Finance Major
Course Descriptions
Somsen Hall, Room 309 (507-457-5014)
Daniel Kauffman (Chairperson)
Economics: Gallegos, Hyle, Kauffman, Manrique, Pevas, Salyards, Wenz,Yu
Finance: Kesler, Kim, Murray, Wrolstad
FACULTY
Alejandro Gallegos, Professor; B.A., Instituto Tecnologico y de Estudios Superiores de Monterrey; M.A., Ph.D., University of Wisconsin-Milwaukee; 1988 –
Matthew Hyle, Professor; B.A., Indiana University; Ph.D., University of Maryland; 1988 –
Daniel E. Kauffman, Professor; B.A., St. Cloud State University; M.A., Ph.D., University of Nebraska-Lincoln; 1983 –
David W. Kesler, Professor; B.S., Pacific Lutheran University; M.A., M.B.A., University of Kansas; Ph.D., University of Wisconsin-Milwaukee; 1984 –
Chan-Wung Kim, Professor; B.A., SungKyunKwan University; M.B.A., Seoul National University; Ph.D., University of Iowa; 2002 –
Gabriel Manrique, Professor; B.A., Ateneo De Manila University; M.A., Ohio University; Ph.D., University of Notre Dame; 1989 –
Michael Murray, Professor; B.A., University of South Florida; M.A., Ph.D., University of Notre Dame; 1986 –
Mary Ann Pevas, Professor; B.A., Dominican College; M.A., Manhattan College; Ph.D., University of Notre Dame; 1990 –
Donald M. Salyards, Professor; B.A., Graceland College; M.A., Ph.D., Kansas State University; 1975 –
Michael Wenz, Assistant Professor; B.S., Miami University; M.A., Ph.D., University of Illinois at Chicago; 2006 –
Mark Wrolstad, Professor; B.A., Luther College; M.B.A., University of Florida; Ph.D., University of Colorado; 1989 –
Wei-Choun (William) Yu, Assistant Professor; B.A., National Taiwan University; M.A., Ph.D., University of Washington; 2006 –
PURPOSE
The purpose of the Economics and Finance programs is to develop highly employable professional business analysts and managers. Majors are provided with a firm understanding of the economy and its financial systems, the ability to conceptualize business issues, and the opportunity to develop quantitative and computer skills necessary to solve today’s complex business problems. The department also seeks to provide graduates with the background necessary to pursue graduate degrees.
PASS/NO CREDIT (P/NC) COURSES
Except for internships, students must take all courses in their major, minor, and options on a grade-only basis. The P/NC option is available to non-majors unless otherwise noted. Courses offered on a pass/no credit-only or grade-only basis are so designated in the course descriptions.
GRADUATION REQUIREMENTS
For a checklist of the University’s graduation requirements, see page 23. Specific requirements for economics and finance majors are as follows.
FOR ECONOMICS MAJORS
1. Complete all coursework required for the major.
2. Achieve a grade of “C” or better in all courses counted toward the major.
3. Complete at least 18 semester credits in economics courses offered by the Economics Department at WSU, including ECON 499.
FOR FINANCE MAJORS
1. Complete all coursework required for the major.
2. Achieve a grade of “C” or better in all courses counted toward the major.
3. Sixty-four non-business credits are required for finance majors. Of the math, statistics, and economics courses required for the finance major, 6 credits of math and statistics and 9 credits of economics can be counted toward the requirement for 64 non-business credits.
4. Complete a minimum of 50% of the business requirements for the finance major at WSU.
UNIVERSITY STUDIES FLAG REQUIREMENTS
Students may use flag courses to satisfy both University Studies and major requirements. Flag courses will usually be in the student’s major or minor program. The Economics and Finance Department offers the following flag courses in the University Studies Program:
ECONOMICS FLAGS
Oral
ECON 499 Seminar in Economics (3)
Writing
ECON 303 Intermediate Macroeconomics (3)
ECON 304 Money and Banking (3)
FINANCE FLAGS
Oral
FIN 421 Institutional Investment & Financial Markets (3)
Math/Critical Analysis
FIN 335 Forecasting Methods (3)
Flag courses that can be used to satisfy economics and finance major/minor requirements are identified in the lists of required courses and electives in this section.
B.A. MAJOR - ECONOMICS (ECON)
45-46 S.H. (Minor Required)
REQUIRED COURSES (27-28 S.H.)
Economics – ECON (18 S.H.)
201 Principles of Microeconomics (3)
202 Principles of Macroeconomics (3)
302 Intermediate Microeconomics (3)
303 Intermediate Macroeconomics (3)
304 Money and Banking (3)
499 Seminar in Economics (3)
Statistics/Quantitative Tools (9-10 S.H.)
FIN 335 Forecasting Methods (3)
Choose one of the following two courses:
MATH 140 Applied Calculus (3) OR
MATH 160 Calculus I (4)
Choose one of the following two courses:
BUSA 220 Business Statistics (3) OR
STAT 210 Statistics (3)
ELECTIVES (18 S.H.)
Additional credits at the 300- or 400-level in economics.
B.A. MINOR - ECONOMICS (ECON)
24 S.H.
REQUIRED COURSES Р ECON (15 S.H.)
201 Principles of Microeconomics (3)
202 Principles of Macroeconomics (3)
302 Intermediate Microeconomics (3)
303 Intermediate Macroeconomics (3)
304 Money and Banking (3)
ELECTIVES (9 S.H.)
Additional credits at the 300- or 400-level in economics.
B.S. MAJOR - FINANCE (FIA; FIB)
69-70 S.H. (No Minor Required)
BUSINESS CORE (39-40 S.H.)
Mathematics (3-4 S.H.)
MATH 140 Applied Calculus (3) OR
MATH 160 Calculus I (4)
Accounting (6 S.H.)
ACCT 211 Financial Accounting Principles (3)
ACCT 212 Managerial Accounting Principles (3)
Statistics (3 S.H.)
BUSA 220 Business Statistics (3) OR
STAT 210 Statistics (3)
Business Administration (15 S.H.)
BUSA 320 Intermediate Business Statistics (3) OR
STAT 310 Intermediate Statistics (3)
BUSA 291 Legal Environment of Business (3)
MIS 312 Business Computer Programming (3)
MGMT 325 Organizational Dynamics (3)
OM 334 Operations Management (3)
Economics and Finance (9 S.H.)
* ECON 201 Principles of Microeconomics (3)
* ECON 202 Principles of Macroeconomics (3)
FIN 360 Corporate Finance (3)
Marketing (3 S.H.)
MKTG 300 Principles of Marketing (3)
FINANCE MAJOR REQUIREMENTS (30 S.H.)
FINANCE CORE (15 S.H.)
ECON 303 Intermediate Macroeconomics (3)
FIN 335 Forecasting Methods (3)
FIN 377 Investments (3)
FIN 440 International Finance (3)
FIN 463 Cases in Financial Management (3)
OPTION A (15 S.H.) (FIA)
Option A is applicable for students planning to seek a career immediately after graduation. Choose five 400-level courses in finance or economics. At least two of the courses must be in finance.
OPTION B (15 S.H.) (FIB)
Option B is applicable for students planning to do advanced study in finance.
REQUIRED (6 S.H.)
FIN 422 Portfolio Theory and Security Valuation (3)
FIN 423 Derivative Securities (3)
OPTIONAL COURSES (9 S.H.)
Select three courses from the following list:
BUSA 340 Management Science (3)
MIS 342 Advanced Business Computer Applications (3)
MIS 462 Decision Support Systems (3)
ECON 405 Monetary Theory and Policy (3)
ECON 425 Managerial Economics (3)
FIN 480 Independent Studies in Finance (1-3)
MATH 165 Calculus II (4)
MATH 210 Foundations of Mathematics (4)
MATH 430 Operations Research: Linear Programming (4)
STAT 360 Regression Analysis (3)
COURSE DESCRIPTIONS
ECONOMICS (ECON)
201 - Principles of Microeconomics (3 S.H.)
The private enterprise system, demand-and-supply, and market interaction; business costs and prices, forms of competition, resource markets; the mixed economy. Recommended prerequisite: University Studies math requirement.
202 - Principles of Macroeconomics (3 S.H.)
National income analysis; aggregate demand-and-supply; money and banking; business cycles, monetary and fiscal policy. Recommended prerequisite: University Studies math requirement.
203 - Principles of Economics III (3 S.H.)
Economic growth; unions; poverty and insecurity; public spending and taxation; international trade and trade restrictions; gold and the balance of payments; comparative systems. Prerequisites: ECON 201 and ECON 202.
302 - Intermediate Microeconomics (3 S.H.)
The theoretical approach to consumer demand, decision-making in the pricing and employment of resources under the major market classification, and the distribution of resources and production. Prerequisite: ECON 201.
303 - Intermediate Macroeconomics (3 S.H.)
National income accounting and measurement, theory of the determination of national economic activity; economic growth; consumption; investment; government spending and net exports; design and effects of fiscal and monetary policies; inflation. Prerequisite: ECON 202.
304 - Money and Banking (3 S.H.)
The nature and functions of money. Current definitions of the money supply and the process of money creation. The financial system and the central bank. The demand for money, interest rate determination, introduction to monetary policy. Prerequisites: BUSA 220 or STAT 210 and ECON 201 and ECON 202.
315 - Environmental and Natural Resource Economics (3 S.H.)
An introduction to the economics of natural resource management and environmental quality. Theory and policy in the use of nonrenewable and renewable resources, and in the control of pollution. Current issues in those areas are featured. Prerequisite: ECON 201 or instructor’s permission.
320 - Business-Government Relations (3 S.H.)
Government economic regulation of business including anti-trust legislation, natural monopoly regulation, and selected social regulation topics such as consumer product safety. Prerequisite: ECON 201.
390 - Economics of the Middle East (3 S.H.)
The Middle East possesses two-thirds of the world’s oil reserves, which the rest of the world uses as a basic input for its economies. In this course, students study the economics of oil and other natural resources of the region, such as the rapidly growing population and its impact on the labor markets as well as the impact all these factors have on scarce basic necessities such as water and food. The course also examines a brief history of ongoing conflicts within the region and their pull on increasing military spending within the context of the current Middle East economies. Prerequisite: ECON 202 or instructor’s permission.
398 - Internship (1-6 S.H.)
Credits will not be counted in economics major, but as general elective credit. Prerequisite: Concurrent enrollment in ECON 399. P/NC only.
399 - Internship Problem (3 S.H.)
Prerequisites: Junior status in economics major, 2.5 GPA, and instructor’s permission. Grade only.
400 - Public Finance: Taxation (3 S.H.)
Structure and economic effects of U.S. tax revenue sources such as the personal income tax and corporate income tax; principles of economic incidence and optimal taxation; current issues in taxation. Prerequisite: ECON 201 or instructor’s permission.
401 - Entrepreneurship and the American Economy (3 S.H.)
This course focuses on the role of entrepreneurs in the development of the U.S. economy and the methods used by successful entrepreneurs. The course includes sections on American economic history and on competing economic systems with an emphasis on the role of entrepreneurship in the free-market system. Prerequisite: ECON 201, ECON 202, ACCT 211, FIN 201 or FIN 360. Grade only.
404 - International Economics (3 S.H.)
Comparative advantage and modern trade theories. The impact of international trade on income distribution and growth, barriers to trade, economic integration, contemporary international marketing agreements, exchange rate determination, and balance of payments adjustments. Prerequisites: ECON 201 and ECON 202. Recommended prerequisites: BUSA 220 or STAT 210.
405 - Monetary Theory and Policy (3 S.H.)
The theory and practice of monetary policy in a modern open economy. This includes the microeconomic foundations of the demand for assets, including money; interrelationships between nonmonetary assets, money, and rates of return; the ability of central banks to manipulate the money supply and influence economic activity; and the roles of public and private debt in monetary policy. Prerequisite: ECON 303 or ECON 304 or instructor’s permission.
415 - International Economic Development (3 S.H.)
A study of the past and current paths to economic growth and development of countries. The course will analyze the economic policies and performances of countries by using economic theory and economic and social data. Emphasis is on developing countries of the Third World, the newly industrialized countries and former socialist countries undergoing transition to a capitalist system. Prerequisites: ECON 201 and ECON 202.
420 - Labor Economics (3 S.H.)
Economic theory relating to labor markets. Wage theory, bargaining models, and contemporary labor issues are considered. Prerequisites: ECON 201 and ECON 202 or instructor’s permission.
425 - Managerial Economics (3 S.H.)
Application of economic theory and related decision-making methods to problems faced by business firms. Prerequisites: ECON 201 and ECON 202 or instructor’s permission.
430 - Asian Economies in Transition (3 S.H.)
This course focuses on the economic transitions that have occurred in Asia. It will include a study of the different economic development strategies and policies that have been used in various Asian countries and a study of which policies have been successful. It will use a comparative approach to examine similarities and differences among countries. Asia’s efforts at regional integration, globalization and development of its financial markets will also be included in the course. Prerequisites: ECON 201 and ECON 202 or instructor’s permission. Grade only.
435 - The North American Economies (3 S.H.)
This course studies the economic evolution of Canada, Mexico, and the United States. It traces the main periods and events of their economies since they became independent nations. Their economic policies are described, analyzed, and compared. Special emphasis is given to the analysis of their economic interaction that has produced the United States-Canada Trade Area and the North American Free Trade Agreement (NAFTA). Prerequisites: ECON 201 and ECON 202 or instructor’s permission. Grade only.
440 - Industrial Organization (3 S.H.)
A theoretical and empirical study of the economic structure, conduct and performance of industry. Topics include concentration, scale economies, entry barriers, and collusive oligopoly practices. Topics are used to judge industrial performance relative to societal goals. Prerequisite: ECON 201.
444 - Public Finance: Expenditures and the Deficit (3 S.H.)
A practical and theoretical approach to public expenditures. The theory of public goods; use of benefit-cost analysis; analysis of major spending programs; and the effect of the deficit on economic activity. Prerequisites: ECON 201 and ECON 202 or instructor’s permission.
450 - Health Economics (3 S.H.)
In-depth analysis of the market for health care services including the demand of health services; the supply of such services; and alternative delivery modes financing by individuals, government, and third-party payers. Health care policy at the federal, state, and local level is evaluated. Prerequisites: ECON 201 and ECON 202.
480 - Independent Studies in Economics (1-3 S.H.)
Offers the advanced student an opportunity to do additional reading and/or research in areas of special interest. Prerequisite: Instructor’s permission. Total credits may not exceed 6.
499 - Seminar in Economics (3 S.H.)
Advanced analysis of economic methods and problems. Specific focus of course is arranged by the instructor. Prerequisites: ECON 302 and ECON 303. Student must be either a major or minor in economics.
FINANCE (FIN)
201 - Introduction to Finance (3 S.H.)
An introduction to the financial system in the U.S. including the role of the banking system in controlling the supply of money and interest rate determination, a primer on investments, and an introductory discussion of international finance. Not open to those having 15 or more credits in business. Grade only.
335 - Forecasting Methods (3 S.H.)
A study of the techniques and processes used in business forecasting. Primary emphasis is on univariate time series. Techniques studied include simple smoothing methods, decomposition methods, and Box-Jenkins ARIMA method and regression. Prerequisites: MATH 140 or MATH 160 and BUSA 220 or STAT 210, or instructor’s permission. Students are strongly advised to take intermediate statistics before taking this course. Grade only.
340 - Computer Applications in Finance (1 S.H. )
A series of short courses in the effective use of the SAS System in a PC environment. Alternative course topics include basic data handling, regression analysis, forecasting techniques, and survey tabulation and analysis, etc. Requires completion of several project assignments. May be repeated as topics change. Prerequisite: BUSA 220 or STAT 210. Grade only.
360 - Corporate Finance (3 S.H.)
The theory and practice of corporate finance, using the approaches and quantitative methods required of today’s financial managers and decision-makers. Special emphasis on a theory of value, the determinants of risk, return and the opportunity cost of capital, applied to both real and financial assets, the study of leverage issues, the exploitation of market inefficiencies, and the development of various tools and economic reasoning which provide the basis for a wide range of corporate financial decisions. Prerequisites: ECON 201, ECON 202, ACCT 211, BUSA 220 or STAT 210, and one of the following courses—MATH 110, MATH 115, MATH 120, MATH 140, or MATH 160. Grade only.
377 - Investments (3 S.H.)
Investment policies affecting the individual and institutional investor. Includes the analysis and management of stocks, bonds, mutual funds and other investments, and the nature of security markets. Prerequisite: FIN 360. Grade only.
398 - Internship (1-6 S.H.)
Credits are not counted in finance major, but as general elective credit. Prerequisite: Concurrent enrollment in FIN 399. P/NC only.
399 - Internship Problem (3 S.H.)
Prerequisite: Completion of business core courses, 2.5 GPA and instructor’s permission. Grade only.
404 - Commercial Bank Management (3 S.H.)
An analysis of financial management issues of commercial banks and other financial institutions including institution performance, investments, asset/liability strategies, management of liquidity, securities, loans and other assets, and capital, deposits, and other sources of funds. Prerequisite: FIN 360. Grade only.
421 - Institutional Investment and Financial Markets (3 S.H.)
A study of portfolio management decision-making in this age of innovative global financial markets, new financial instruments and instantaneous worldwide communications. Prerequisites: FIN 360 and ECON 303. Grade only.
422 - Portfolio Theory and Security Valuation (3 S.H.)
An in-depth study of modern portfolio theory and techniques for the valuation of securities including equity, debt, and derivative securities. Special emphasis is placed on the contingent claims model for security valuation. Prerequisites: FIN 377 and MIS 312, or instructor’s permission. Grade only.
423 - Derivative Securities (3 S.H.)
The application and valuation of financial securities whose value is contingent on the value of other securities. The primary concentration is on option and futures contracts; however, application of the option valuation model to other areas of finance will also be introduced. Prerequisites: MATH 140 or MATH 160 and FIN 360. Grade only.
440 - International Finance (3 S.H.)
This course provides a comprehensive introduction to the world of financial management as it applies to multinational corporations and other firms that engage in international transactions. Topics include the nature of the international financial system, foreign exchange management, investment financing, and risk management issues of concern to international businesses. Prerequisite: FIN 360. Grade only.
463 - Cases in Financial Management (3 S.H.)
Case studies affecting the financial policies and position of the business unit. Analysis of financial problems, determination of alternatives, evaluation of alternatives and managerial decision-making. Prerequisites: FIN 360 and MIS 312. Grade only.
471 - Real Estate Finance (3 S.H.)
The structure and operation of the primary and secondary mortgage markets, instruments, techniques, and strategies in financing real property investments including developing projects. Prerequisite: FIN 360. Grade only.
473 - Real Estate Investment (3 S.H.)
Development of the feasibility process, the major tool used in analysis of investment opportunities, with a view to determining highest and best use. Topics include market analysis, cash flow analysis, tax considerations, investment performance, risk analysis, and passive investments in real estate. Prerequisite: FIN 360. Grade only.
480 - Independent Studies in Finance (1-3 S.H.)
Offers advanced students an opportunity to do additional reading and/or research in areas of special interest. Prerequisite: Instructor’s permission. Total credits may not exceed 6. Grade only.
Last Modified: Wednesday, August 13, 2008 15:37
