HE101 Microeconomic Principles

This course gives students a basic grasp of economic theory as well as the ability to apply economic principles to real-world problems. The course addresses the decision-making of small economic units - consumers, firms and markets. Topics covered include cost-benefit principles, opportunity cost, laws and elasticity of demand and supply, utility maximization, the concept of the margin, indifference curves, profit maximization, market equilibrium and efficiency, market structure, market failure, public choice, externalities and property rights, the economics of public policy and of public goods.

HE102 Macroeconomic Principles

This course exposes students to a basic understanding of the workings of the economy as a whole. The topics covered include measures of the GNP; inflation and unemployment; economic growth; the general product market; the 'Keynesian cross' model; the general money market, the creation of money; the role of central bank and of the financial institutions; the basic IS-LM model; aggregate demand and aggregate supply; open economy macroeconomics that includes capital flows and the balance of trade.

HE103 Basic Mathematics for Economists

This course is designed for students who do not have the necessary background in mathematics. Students will be taught mathematical techniques that are useful for economic analysis at both the elementary and the intermediate level. Topics covered include functions, derivatives and partial derivatives, optimization with or without constraints, integration, simple differential equations and simple difference equations, matrix algebra.

HE104A Introduction to Statistical Theory and Methods

The purpose of this course is to present an introduction to the general statistical principles which serve as the statistical foundation for HE204A Introduction to Econometrics. The course covers basic measures of central tendency and dispersion through descriptive statistics; elements of set theory and probability; discrete and continuous distributions; random variables and sampling distributions, statistical estimation and hypothesis testing theory. Finally, the course ends with an introduction to multivariate random variables.

HE104B Introduction to Probability and Statistical Inference

This course provides a statistical foundation for students to pursue further courses in econometrics and statistics. A standard calculus course would provide adequate mathematical background. The course emphasizes fundamental concepts and presents them in a logical order. Topics covered include probability; distributions and densities; mathematical expectations; functions of random variables; sampling distributions; estimation and hypotheses testing for means, variances and proportions

HE201 Intermediate Microeconomics
Pre-requisite: HE101/AB106/HE191

This is an intermmediate course on microeconomic theory for economic majors. It covers some important contents in microeconomic theory and basic economic modeling. Economic concepts are analysed in a rigorous manner, thus laying the foundation for economic majors to pursue advanced microeconomic theory. Students who did not take HE103 Basic Mathematics for Economists should have at least GCE A-level C mathematics or equivalent.

HE202 Intermediate Macroeconomics
Pre-requisite: HE102 /AB106/HE191

The aim of this course is to provide a basic understanding of the theoretical foundations of macroeconomics at an intermmediate level. The course covers (a) the major macroeconomic markets: goods, money, and labor markets, and their constituent functions including the consumption function, saving function, investment function, money-demand function, the determinants of money supply, etc; (b) macroeconomic models: IS/LM/AD/AS in closed and open economics, and the Phillips curve; (c) macroeconomic stabilization and macroeconomic policies; and (d) introduction to growth theory.

HE204A Introductory Econometrics
Pre-requisite: HE104A /HE104B/AB103 or equivalent

The purpose of the course is to offer students in economics and other social sciences an overview of econometrics. The course exposes economics students who are less quantitatively-inclined to the main tools of estimation and inference through a variety of empirical examples. These will be based on economic decisions in fiscal planning, investment expenditure, consumption and monetary policy. Students will be given hands-on experience of econometric application through computer lab sessions.

The course begins by introducing the basics of probability and statistics in terms of random variables, probability distributions, estimation and hypothesis testing. The basic ideas of modeling are then introduced through the simple linear regression model, with illustrations to emphasize its applications in economic analyses. These ideas are then extended to the multiple regression framework. Consideration is given to functional forms, restricted estimation, structural change, dummy variables, multicollinearity, dynamic economic models, qualitative dependent variables and diagnostic checking. Systems of equations models are also introduced.

HE204B Principles of Econometrics
Pre-requisite: HE104B or equivalent

This course offers students in economics and other social sciences a firm foundation in the theory and methods of econometrics. The course teaches students the main tools of estimation and inference. Applications of econometric techniques will be illustrated by empirical examples based on economic analysis. Students will be given hands-on experience through computer lab sessions.
The course begins with a thorough analysis of the simple linear regression model. It covers the estimation and hypothesis testing of regression coefficients, goodness-of-fit and prediction. The model is then extended to the multiple regression framework. Further topics such as diagnostic checking, functional forms, restricted estimation, dummy variables and structural change are discussed. In addition, the course provides an introduction to nonlinear models, models for panel data, and the matrix approach to the GLM.

HE205 International Trade
Pre-requisite: HE101/HE191/AB106

The aim of this course is to provide students with an understanding of trade theory and policy. The course will cover the law of comparative advantage, the gains from trade, the Ricardian model, factor intensity and factor abundance, the Heckscher-Ohlin theory, factor-price equalization, standard and alternative trade theories, product differentiation and intra-industry trade, technological gaps and product cycles, trade and economic development, import substitution versus export orientation, tariff and non-tariff barriers, theory of effective protection, instruments and impacts of trade policy, economic integration, customs unions and free trade areas, international factor movements, and multinational corporations.

HE206 International Monetary Economics
Pre-requisite: HE102/ HE191/AB106

This course offers a systematic analysis of theories on international money and finance. Topics covered include balance of payment; the foreign exchange market; hedging and speculation; interest arbitrages; the J-curve effect; the Marshall-Lerner condition; the absorption approach; internal and external balance; adjustment mechanisms under the fixed and flexible exchange rate systems; long-run determinants of the exchange rate; the monetary approach; the asset market approach; the role of market fundamentals, expectations and news of exchange rate and asset price movements; the theory of optimal currency area; financial crises; Singapore's exchange rate system.

HE207 Money and Banking
Pre-requisite: HE101/HE102/HE191/AB106

This course offers a systematic analysis of monetary theories and the financial system. Apart from exposing students to different approaches in monetary analysis, the course places a special emphasis on the up-to date analysis of how information costs affect financial structure and monetary policy. The course will cover the structure and importance of the financial system, the functions of money, behavior of interest rates, financial structure and asymmetric information, bank management and regulation, debates on macroeconomic and monetary policies, the targets and instruments of monetary policies, the transmission mechanism of monetary policy and its effectiveness, money and inflation, rational expectations and its applications, and exchange rate and monetary policies in Singapore.

HE208 Public Finance
Pre-requisite: HE101/HE191/AB106

This course uses the tools of microeconomic analysis to study the rationale for government intervention, the areas of intervention and the sources of public financing. Topics include the theory of public goods; externalities; natural monopolies; cost-benefit analysis of government projects; social expenditure programmes; principles of taxation; personal and corporate income taxes; consumption taxes; implications of tax policies for efficiency and equity; deficit financing; Singapore's budgetary policies.

HE209 Industrial Organisation
Pre-requisite: HE101/HE191/AB106

This course seeks to provide students with a consistent framework of economic analysis to understand the impact of efficient organisation on the economy. It addresses some fundamental questions in industrial organisation: how the modern firm has evolved; why some economic activities are organised within the firm and others outside; how firms interact in the marketplace; how governments react to strategic behaviour and how they regulate industries.

This course is about the 'new industrial organisation'. It goes beyond the traditional descriptive structure-conduct-performance approach and uses the latest analytical tools of microeconomics to study strategic interaction between firms. Cases in competition policy are discussed, exposing students to anti-trust law in ASEAN, Canada, the United States, Europe and Japan.

HE210 Development Economics
Pre-requisite: HE101/HE102/HE191/AB106

This course introduces the student to the field of development economics. It explores the definition and measurement of economic growth and development, as well as competing theories of economic growth. It also examines specific issues in the economics of developing countries. Examples include the relationship between population growth and economic development, the environmental impact of economic development, the role of the IMF in developing countries, the economic relationship between developed and developing countries, and the debate on export promotion versus import substitution.

HE211 Labour Economics & Labour Relations
Pre-requisite: HE101/ HE191/AB106

This course seeks to explain the inner workings of the labor market. The course focuses on the economics of the labor market. It covers the determination of labor market demand and supply, wage determination, wage differentials, human capital investment, migration and discrimination, as well as unemployment and labor policies. The course also aims to explain why workers join unions, trade union behavior, wage determination under the union, and the economic impact of unions.

HE212 Economic Thought
Pre-requisite: HE101/HE102/ HE191/AB106

The study of economic thought is not concerned primarily with the way in the moderns evolved from ancients and learned to avoid the foolish mistakes of their more primitive forebears. Rather, this course examines the extent to which different economists have looked at the same thing in different ways. Few of the alternative approaches are out of date even if many are now out of fashion. The purpose of this option is to widen students' perspectives by examining how some of the great thinkers of the past have sought to resolve economic problems which remain the central focus of our present-day concerns. The course will proceed historically, covering the main stages, the main authors and the main paradigms: the Greeks, the Middle Ages, Islam, Mercantilism, Smith, Malthus, Marx, historicism, marginalism, Keynesianism. It will situate each in the economic circumstances of its time.

HE220 Survey Methods and Sampling Techniques
Pre-requisite: HE104A/HE104B/AB103 or equivalent

This course is useful for Business majors and social science majors. It covers the methodology of surveys and the techniques of sampling. The course covers the simple surveys and sampling principles, and the strengths and weaknesses of different sampling techniques. Course topics also include the design and methods of surveys, sampling techniques, data collection and estimation methods, analysis of collected data, treatment of responses, non-responses and measurement errors. To meet the differential needs of the course students are encouraged to data analysis utilizing computer software.

HE301 Mathematical Economics
Pre-requisite: HE103 or equivalent and HE201/HE192

This course deals with basic mathematical tools used to analyze economic problems. These include matrix algebra, linear programming, differential calculus, differential and difference equations. This course emphasizes economic applications of each technique and an understanding of standard economic models. Economic models of continuous and lagged adjustments will be introduced. By the end of the course, students will have learned enough mathematical skills to read some technical articles in economics and to analyze some economic problems.

HE302 Game Theory & Applications to Social Sciences
Pre-requisite: HE103 or equivalent and HE201/HE192

This is an intermediate level game theory course. The basic concepts of games are discussed in a rigorous manner. Examples are introduced to help students understand the basic concepts and their applications. The prerequisites for taking this course include elementary economic theory, A-level mathematics and elementary calculus.

HE303 The Chinese Economy
Pre-requisite: HE101/HE102/HE191/AB106

The purpose of the course is to provide students with a basic understanding of the emerging Chinese economy and its business environment. Major topics include: (1) a background introduction to China's economy and its economic reforms; (2) fundamental economic institutions; the current economic structure; industrial policies; (3) macroeconomic policies; (4) growth patterns and trends.

HE304 Health Economics
Pre-requisite: HE101/HE191/AB106

Health care is expanding rapidly in both private and public sectors of the economy. As prevention and cure of illness absorbs a larger and larger share of the national product, it becomes increasingly important to examine the implications for efficiency and equity of the use that the industry makes of scarce resources. This course will consider the principal areas of concern to the economist interested in health status and health care. The topics will include demand, uncertainty, spillovers, health indicators, cost-benefit and cost-effectiveness techniques, the goals and cost-functions of hospitals, the market for medical-insurance, the pharmaceutical industry, manpower planning and health education. Theories will be illustrated with material relating to Singapore and other countries, developed and less developed.

HE305 Environmental Economics
Pre-requisite: HE101/HE191/AB106

This course deals with the application of microeconomic tools to the analysis of environmental externalities. A main theme is the impact of economic activity on the quality of the environment and the related policies and regulations that arise in response to these impacts. The course will cover methods of valuing non-market environmental resources; assessment of environmental benefits and damages; analytical tools such as cost-benefit analysis needed for project evaluation and environment impact assessments; the concept of optimal pollution and its control; regulation and market solutions. Selected topics on international environmental issues and aspects of sustainable development will also be discussed.

HE306 Urban and Transport Economics
Pre-requisite: HE101/HE191/AB106

This course explores business and household location decisions and the relevance of the theories in analyzing urban trends. Topics to be covered are urban spatial analysis, density functions, the market for housing, rental markets and rent control, alternative housing policies, trends in urban transport, demand for transport and the value of travel time, supply and pricing of transport services, pricing of modes, congestion and pricing, government urban and transport policies, urban public finance, environmental problems and the issues of regulation and deregulation will be examined in the context of Singapore and other East Asian countries.

HE307 Financial Economics
Pre-requisite: HE101/HE191/AB106 and HE104A/HE104B/AB103

This course deals with the theory and practice of financial economics. The course starts with financial decisions under certainty and uncertainty: the utility approach and the mean-variance approach. Based on these basic theories students will be exposed to market equilibrium models: capital asset pricing model, arbitrage pricing models and their variants, and efficient market hypothesis. The course also deals with capital structure theory, valuation of bonds and shares, derivative markets, option and futures pricing theory.

HE309 Population Economics
Pre-requisite: HE101/AB106/ HE191

This course provides an introduction to demographic methods and then considers topics in population analysis of interest to economists. It provides training in developing quantitative skills required in the analysis of population structures and projections. Demographic measures (e.g. mortality, fertility, nuptiality and standardization), life-table analysis and techniques of population projection will be presented. Also to be discussed will be economic issues related to an ageing and declining population. Topics to be covered will include social security and retirement behaviour, intergenerational transfers, health and disability of the elderly, and impact on economic growth.

HE310  Energy Economics
Pre-requisite  HE101/AB106/ HE191

This course seeks to give students an introduction to the economics of energy use and its relationship with the environment. It looks at energy demand and supply, both now and in the future, and energy markets and trading (in particular, in oil markets). Alternative energy supply technologies and the economics of renewable resources are also examined. Issues such as monopoly power in electricity markets and regulation and deregulation in such markets will also be discussed. Finally, it deals with issues relating to energy security and the effect of energy use on the environment and climate change.

HE311  Cost-Benefit Analysis
Pre-requisite:   HE201/HE192

Cost benefit analysis is concerned with the theory and application of criteria for public investment decision-making. The purpose of this course is to develop an understanding of the principles of cost benefit analysis and to indicate the usefulness and limitations of the method by way of project evaluations and other varied examples on its implementation. Such questions as what costs and benefits are to count, what alternative investment decision criteria exist besides the popular discounted cash flow method, how do we appraise projects under conditions of uncertainty, and what could be done about distributional considerations? The problem of including non-market goods and their valuation is also highlighted and discussed in this course. Such commodities as scenic views, human life, time, environmental externalities, and recreation which are not exchanged explicitly in the market require shadow-efficiency prices for inclusion into cost benefit analysis.
Helpful prerequisites to this course will be a microeconomics principles course and some knowledge of basic calculus and algebra. Exercises and cases involving real and simulated cost benefit studies will be given where appropriate.

HE312 (previously HE299) Political Economy of East Asia
Pre-requisite: HE101/HE102/ HE191/AB106

The aim of this course is to provide students with an understanding of the political economy of the region. The course covers recent economic development in East Asia, especially Singapore. It examines government-business relationship, foreign direct investment and trade flows, macroeconomic management and the transitional economies in East Asia. Issues relating to regional integration, the World Trade Organization, capital flows, the international financial system, demography and dependency will also be examined. Special attention will be given to problems and prospects of economic development in Southeast Asian countries

HE320 Applied Econometrics
Pre-requisite: HE204A/HE204B*

The course focuses on important applications of econometric techniques. The course structure follows the philosophy of hands-on training. Every lecture is followed by a tutorial session in which the students will use a computer software package to solve real world problems discussed in the lecture. The course covers a wide variety of applied problems often faced by economists in both public and private sectors. At the end of the course, students must be able to use a standard computer package to carry out empirical studies.
The scope of the course covers: (1) Macroeconometric modeling, which includes econometric analysis of consumption functions, models of investment, production and cost functions, money demand, and wage-price equations; (2) Business forecasting, which includes modeling demand for electricity, sales and advertising, pricing strategy, and the other applications; and (3) Applications of models of qualitative variables, including the estimation of hedonic price index and ARCH and GARCH models.

HE321 Intermediate Econometrics
Pre-requisite: HE204B/at least an A grade in HE204A*

This course builds on the earlier Principles of Econometrics by considering further inferential issues related to the multiple regression model. In addition, dynamic economic models are discussed and are shown to represent many economic relationships. Topics covered include heteroskedasticity, autocorrelation, multicollinearity, omission of relevant variables, inclusion of irrelevant variables; selecting the set of regressors, autoregressive and distributed lag models,

HE322 Econometric Modeling and Forecasting
Pre-requisite: HE204A/HE204B*

The purpose of this course is to provide students with an understanding of the modern economic modeling and forecasting methods. The course begins with the fundamentals of forecasting techniques, a review of single-equation, multiple equation forecasting models. These include ARIMA modeling with trend, seasonal and cyclical components. The course then examines the basis for making forecasts, the nature of forecast errors and examines the properties of forecasts based on different forecasting models. Practical examples using a variety of economic variables will be used to illustrate the actual generation of forecasts. A recent new development in this field is the investigation of non-stationary time series and its impact on estimation procedure. The contrast between modeling stationary and non-stationary time series will be discussed. 

HE323 Econometric Analysis of Financial Data
Pre-requisite: HE204B/at least an A grade in HE204A*

The application of econometric techniques in finance has expanded rapidly in recent years. This course introduces some econometric models and methods widely and frequently used in examining financial time series. It aims to provide a basic understanding of the basic characteristics of financial data and gain some experience in analyzing financial time series. Topics covered include ARIMA models, volatility modelling, unit roots, cointegration and multivariate models. This course will emphasize hands-on applications using computer software.

*For non-Economics majors the pre-requisite for HE320, HE 321, HE322 and HE323 also includes HE191/AB106/HE101.

HE401 Advanced Microeconomics
Pre-requisite: HE201

This course covers several microeconomic topics taught at the advanced level. It will provide a solid microeconomic foundation for the students for their future research in different fields in economic theory. The prerequisites of this course consist of intermediate microeconomics and a strong background in mathematics. Topics include the theory of consumer choice, demand and supply, game theory, competitive markets and market failure; externalities and public goods; adverse selection, moral hazard; principal-agent problem; general equilibrium theory.

HE402 Advanced Macroeconomics
Pre-requisite: HE201/HE202

The course aims to give students an overview of the field of macroeconomics using models and techniques to gain insights into important issues in macroeconomics. It covers issues in economic growth such as why some countries are rich while others are poor, what accounts for the increases in income over time and why some countries experience economic growth while others experience economic stagnation. It also covers issues such as the sources of economic booms and recessions and of inflation and unemployment. In the discussions of growth, inflation and unemployment, competing theories will be considered and the impact of government policies will be assessed.

HE403 Advanced International Finance
Pre-requisite: HE202/HE192

This course offers a rigorous exposition of the latest theoretical developments in international monetary economics. By exposing the students to a substantial amount of journal articles, the course aims at building up students' technical and theoretical background as well as providing the economic and financial knowledge that are useful to a future financial economist, analyst or dealer. Some of the technical applications that could not be covered in the course of International Monetary Economics will be covered here. Students interested in pursuing postgraduate studies in economics or finance are recommended to take this course. Finance, engineering and science students with strong mathematical background that have interest to work in the government and finance sectors are also encouraged to take this course.

Topics covered include exchange rate overshooting models; portfolio balance models; stock-flow interactions; role of market fundamentals, expectation, financial and political news and release of government statistics on exchange rate and asset price movements; exchange rate determination using dynamic general equilibrium models; herding behavior; models on the impacts of chartists and fundamentalists on exchange rate dynamics; the US dollar bubble in the early 1980s; the impact of the US budget deficit on its current account and the US dollar appreciation; hysteresis effect and exchange rate pass through; models on speculative attack; empirical tests on purchasing power parity; Stein's natural equilibrium exchange rate model; the monitoring band system; and Singapore's exchange rate system.

HE404 Behavioural Economics
Pre-requisite: HE201/HE202/HE192

This course gives an introduction to behavioral economics which is the combination of psychology and economics. It is intended for advanced undergraduate students. We will study quasi-rational behavior of less than perfect economic agents in their judgments and decision making by modifying the rationality assumption adopted in the standard economic model and incorporating important features of human psychology. Bounded rationality, bounded willpower and bounded self-interest, three important ways in which human behavior and choices diverge from rationality, will be discussed. We will also demonstrate how less than perfect economic agents survive market forces and exert a strong influence on market outcomes. Empirical and experimental evidence from finance, saving behavior, labor market and other fields will be used to show how behavioral economics can be fruitfully applied to yield important insights into market operation and behavior patterns.

HE405 Growth Theory and Empirics
Pre-requisite: HE201 and HE202

The course aims to equip students with analytical tools used in various economic growth models. The basic Solow Model and the Ramsey Model will be presented, followed by models with product variety, product quality, technology diffusion, and human capital. Selected topics on income inequality, social mobility, institution, natural resources, unemployment, migration, finance, and others in relation to growth theory will be examined. Recent empirical studies on economic growth will be discussed and assessed.

HE410 Singapore Economy in a Globalized World
Pre-requisites: HE201 and HE202

This is a capstone course designed for final year economics students, This course is a study of Singapore economic policies - their rationale, their design and what they have achieved. The topics will include exchange rate, privatization and competition, manpower and labour market, industrial economics, and monetary and fiscal policies. The objective is to provide final year economics undergraduates with greater insights into the policies that have shaped Singapore's economic growth and to be engaged in a discussion of these policies. It will be unique in drawing upon the expertise of adjunct staff who have been, and/or are involved in making policy and of staff members who have worked extensively in the area, and on senior government policy and decision-makers.

HE411 Current Topics in Economics
Pre-requisite: HE201 and HE202

This course is designed to tap into the expertise of visiting academics in their areas of specialization.  It  is intended to cover new or recent developments in economics, or in-depth economic analysis of one of many fields of economics.  The topics can be theoretical, applied or policy-oriented. The course is aimed at third and fourth year economics undergraduates. 

HE420 Econometric Time Series Analysis
Pre-requisite: HE321

This course provides an introduction to econometric time series techniques that are widely used in analyzing economic data. The course will meet the needs of students who plan more advanced studies in this area. Students are instructed on the econometric time series techniques that can be used for empirical economic studies, as well as to analyze financial time series. Topics covered include stationary time-series models, trends and volatility modeling, models for time-varying volatility, univariate processes with unit roots, multiequation time-series models, cointegration and the error-correction models.

HE421 Advanced Econometrics
Prerequisite: HE321

This course presents some asymptotic theory and results relevant to econometric methods. Students are also introduced to some econometric models which have wide applications in economic analyses. Applications of these models will be demonstrated in hands-on computer lab sessions.

The course begins with a discussion of large sample distribution theory which forms the basis for the likelihood ratio, Wald and LM tests procedures. Models for analyzing cross-section and time series data are discussed, followed by models for analyzing simultaneous relationships. Qualitative and limited dependent variables models are also introduced.

HE191 Principles of Economics

This course aims to equip students with basic concepts in economics that will aid better understanding of current issues and events. Lectures will give the framework for economic analysis. Tutorials will provide the platform for discussion of economic theories that can be applied to current affairs and issues. E-learning tools will be used for disseminating information related to the course.

HE192 Economic Theory
Pre-requisite:  HE191/AB106/AB106Exempt

The aim of this course is to provide a basic understanding of the theoretical foundations of microeconomics and macroeconomics at an intermediate level. In the first half of the course, students will learn microeconomic theories of (a) households making consumption, saving, and labor-supply decisions, (b) firms making output-supply as well as input-demand decisions, and (c) public goods and externality. In the second half of the course, students will be equipped with models in understanding key macroeconomic phenomenon in the short run and medium run related to the goods, financial, and labor markets. A growth model will be developed to understand the economy in the long run.