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MS Economics Online Curriculum 

Curriculum OverviewApplied Economics & Data Science Specializations

The curriculum our Applied Economics and Data Science specializations helps you examine how real-world issues, econometric methods, machine learning, and new applications affect economic research and policy.

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 Master's 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 work hands-on with statistical software, often with Stata, in learning applied economics research. Our DC location, gives you the opportunity to explore various professional opportunities. 

Question & Answer Session

Question: Why American University's Master's 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.

Core Course Descriptions for Online MS

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. 

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.