Department of Economics
Last Updated:
14/09/2018 - 13:32

The Department of Economics, in addition to its noteworthy position in undergraduate education, has placed a special emphasis on expanding its graduate programs. The department offers four different graduate programs: M.Sc. with thesis, M.Sc. without thesis, Ph.D. on M.S., and Ph.D. on B.S. Candidates for these degrees come from diverse backgrounds, but the majority of the students are economics majors who want to deepen their knowledge and analytical skills. Candidates who do not have any economics background may be accepted to the programs conditional on completing an Academic Deficiency Program (as explained below).


The Master of Science Program in Economics aims to equip graduate students with specialized knowledge and skills in the field of economics with a special focus on macroeconomic theory, microeconomic theory, econometrics, and mathematical economics.

Course Code Course Name METU Credit Contact (h/w) Lab (h/w) ECTS
ECON 501 MICROECONOMIC THEORY I 4 4 0 10.0
ECON 502 MACROECONOMIC THEORY I 4 4 0 10.0
ECON 507 ECONOMETRIC METHODS I 3 3 0 8.0
ECON 599 MASTER'S THESIS 0 0 0 50.0
ECON 595 SEMINAR 0 0 0 10.0
ECON 687 RESEARCH METHODS & ETHICS 0 2 0 5.0

AND 1 Restrictive Elective course and 3 elective courses approved by the Department of Economics. Restrictive Elective courses are ECON500 Mathematics for Economists and MATH 587 Ordinary Linear Equations I. Total minimum credit: 22

Course Code Course Name METU Credit Contact (h/w) Lab (h/w) ECTS
ECON 501 MICROECONOMIC THEORY I 4 3 0 8.0
ECON 502 MACROECONOMIC THEORY I 4 4 0 10.0
ECON 507 ECONOMETRIC METHODS I 3 4 0 10.0
ECON 589 TERM PROJECT 0 0 0
ECON 687 RESEARCH METHODS & ETHICS 0 2 0 5.0

AND 1 Restrictive Elective course and 6 elective courses approved by the Department of Economics. Restrictive Elective courses are ECON500 Mathematics for Economists and MATH 587 Ordinary Linear Equations I. Total minimum credit: 31

The Ph. D. program in Economics aims to improve the research skills of graduate students in analyzing economic and social phenomena by giving special emphasis to macroeconomic theory, microeconomic theory, econometrics, and mathematical economics.

Course Code Course Name METU Credit Contact (h/w) Lab (h/w) ECTS
ECON 503 MICROECONOMIC THEORY II 3 3 0 8.0
ECON 504 MACROECONOMIC THEORY II 3 3 0 8.0
ECON 508 ECONOMETRIC METHODS II 3 3 0 8.0
ECON 696 GRADUATE SEMINAR IN ECONOMICS 0 0 0 6.0
ECON 699 PH.D. DISSERTATION 0 0 0 8.0
ECON 687 RESEARCH METHODS & ETHICS 0 2 0 5.0

AND 4 elective courses approved by the Department of Economics. Total minimum credit: 21

The Ph. D. program in Economics aims to improve the research skills of graduate students in analyzing economic and social phenomena by giving special emphasis to macroeconomic theory, microeconomic theory, econometrics, and mathematical economics.

Course Code Course Name METU Credit Contact (h/w) Lab (h/w) ECTS
ECON 503 MICROECONOMIC THEORY II 3 3 0 8.0
ECON 504 MACROECONOMIC THEORY II 3 3 0 8.0
ECON 508 ECONOMETRIC METHODS II 3 3 0 8.0
ECON 696 GRADUATE SEMINAR IN ECONOMICS 0 0 0 6.0
ECON 699 PH.D. DISSERTATION 0 0 0 8.0
ECON 687 RESEARCH METHODS & ETHICS 0 2 0 5.0

AND 11 elective courses approved by the Department of Economics. Total minimum credit: 42

Course Code Course Name Description
ECON 500 MATHEMATICS FOR ECONOMICSTS This course covers the elements of mathematical analysis, qualitative behaviours of dynamic systems and, static and dynamic optimization techniques.
ECON 501 MICROECONOMIC THEORY I Analytical tools of micro theory; theories of the consumer and the firm; determination of relative prices under different market structures; existence, uniqueness, and stability of competitive market equilibrium; welfare and general equilibrium analysis.
ECON 502 MACROECONOMIC THEORY I Analytical treatment of the Classical, Keynesian and Tobin's dynamic aggregative models; reduced forms, impact multipliers and basic notions of stability analysis; implications of different money regimes and alternative definitions of disposable income; rapid review of the theories of inflation and unemployment are discussed in this course.
ECON 503 MICROECONOMIC THEORY II Probability Distribution Theory and Statistical Inference; the linear regression model; maximum likelihood ; specification problems; data problems; non-linear regression.
ECON 504 MACROECONOMIC THEORY II Walrasian and Keynesian adjustment mechanisms; neo-Keynesian quantity-constrained models; policy analysis when asset stocks adjust; selected issues in open macro models.
ECON 507 ECONOMETRIC METHODS I Probability Distribution Theory and Statistical Inference; the linear regression model; maximum likelihood ; specification problems; data problems; non-linear regression.
ECON 508 ECONOMETRIC METHODS II Nonspherical disturbances; heteroscedasticity and autocorelation; the use of panel data, seemingly unrelated regression; simultaneous equation multiple time series: cointegration and error correction; discrete dependent variables.
ECON 510 TURKISH ECONOMY Microeconomic and macroeconmomic problems of the Turkish economy will be discussed in a historical perspective. Emphasis will be placed on recent problems such as structural change, liberalization, privatization and public sector finance.
ECON 512 INTRODUCTION TO POLITICAL ECONOMY This course analyses the political dynamics underlying the development of economic theories and institutions. The conflicting nature of capitalist accumulation process and its crises is also discussed.
ECON 514 MACROECONOMIC THEORY AND POLICY This is an intermediate macroeconomics course specifically designed for non-departmental students.
ECON 524 CAPITAL IN ECONOMIC THEORY No data is available for the course.
ECON 528 EUROPEAN ECON.INTEGR.AND TURKEY The aim of the course is to give an in depth understanding about the economic integration process in Europe and its implications for the Turkish economy to graduate students of the Department of Economics, as well as enhancing their research skills in this area.
ECON 545 NONLINEAR DYNAMICS IN ECONOMICS No data is available for the course.
ECON 589 TERM PROJECT This is a non-credit course for M.S. students who are to take a non-thesis degree. The objective is to have them carry out resaerch of a more limitted nature than a M.S. thesis.
ECON 595 SEMINAR This is a non-credit course for M.S. students who are to take a non-thesis degree. The objective is to have them carry out resaerch of a more limitted nature than a M.S. thesis.
ECON 599 MASTER'S THESIS The objective of this course is to enable the student to prepare the ground for his/her M.S. thesis. Students in their first year can take this course in the second semester.
Course Code Course Name Description
ECON 604 TOPICS IN INTERNATIONAL ECONOMICS No data is available for the course.
ECON 605 DEVELOPMENT MACROECONOMICS I Structuralist macro models; closure rules and distributional implications; financial programming and related controversies; money inflation and growth; empirical aspects of saving-investment behaviour; critical review of selected policy episodes.
ECON 606 DEVELOPMENT MACROECONOMICS II No data is available for the course.
ECON 607 INPUT-OUTPUT ANALY. &PROGRAMMING MODEL Data base and analytical frameworks of input-output analysis. Interindustry price system. Design and use of programming models in development policy studies.
ECON 608 COMPUTABLE GENERAL EQUILIBRIUM MODELS Basic structures of computable general equilibrium (CGE) models for closed and open economies; integration of input-output and social accounts; multi-period aspects; review of closure rules for the internal and external balance.
ECON 612 TOPICS IN GENERAL EQUILIBRIUM THEORY No data is available for the course.
ECON 624 FINANCIAL ECONOMICS I The focus of this course is on asset pricing. The topics to be discussed are: choice under uncertainty, expected utility theory, mean-variance portfolio theory using both static and dynamic approach, the theory of capital market equilibrium and asset valuation, the capital asset pricing model, the Arbitrage Pricing Theory, mutual fund separation and aggregation theorems, risk neutral valuation in complete markets, incomplete asset markets, differential information, risk measure, general equilibrium under uncertainty and asymmetric information.
ECON 625 INTERNATIONAL ECONOMICS I No data is available for the course.
ECON 626 INTERNATIONAL ECONOMICS II No data is available for the course.
ECON 627 ECONOMICS OF EUROPEAN INTEGRATION No data is available for the course.
ECON 630 FINANCIAL THEORY AND CORPORATE POLICY This course is designed to provide the students a thorough knowledge of financial theory and corporate policy through the study of the interaction between individuals, corporations and the macro-economy. The first part of the course covers investment decision under certainty, the term structure of interest rates, the investor choice under uncertainty, portfolio theory and equilibrium asset pricing models. The second part focuses on the applications of financial theory to corporate policy issues such as the cost of capital, capital structure, dividend policy and option pricing.
ECON 631 MONETARY THEORY This course will take a fundamentally aggregate approach and relate "money" to different areas in economics such as "fiscal policy" international trade", "international monetary economics", "inflation", "economic growth", etc. Different types of macroeconomic model with a monetary sector will be studied and some of these models will be solved, using the Turkish data. Special emphasis will be given to current monetary issues in the Turkish economy.
ECON 632 TRADE POLICY &INDUSTRIAL PERFORMANCE No data is available for the course.
ECON 636 INTERNATIONAL MACROECONOMICS This course examines the determination of exchange rates, the current account and other important macroeconomic variables in an open economy. The course aims to develop a general framework to address important policy questions and provide a sound understanding of exchange rate determination, balance of payments problems and implications of macroeconomic and financial linkages between economies. The course will cover recent topics in the area of open economy macroeconomics and international monetary economics.
ECON 637 TOPICS IN INTERNATIONAL MACROECONOMICS The main objective of this course is to enable students to have a better understanding of the different applications of ‘new open economy macroeconomics’ models which are regarded as the new workhorse model of macroeconomics used to analyse the effects of macroeconomic policy in an open economy setting.
ECON 639 ECONOMICS OF CONSUMPTION AND DEMAND ANALYSIS Analysis of demand with emphasis on the theory of consumption decisions, the development and estimation of models, and the assessment and interpretation of empirical results. Topics will include the following: Demand system specification. Duality and flexible functional forms. Separability and aggregation. Dynamic demand models. Household consumption models, demographics, and equivalent scales. Cost-of-living indices and standard of living measurement. Quality of goods. Empirical applications with emphasis on food demand.
ECON 640 AGRICULTURAL ECONOMICS No data is available for the course.
ECON 641 INTERNATIONAL AGRICULTURAL TRADE AND POLICY This course deals with agricultural policies in an independent world. The focus is intentionally analytical, using verbal and graphical analysis, to derive alternative policy choices. The course is designed to assist the student with understanding policy choice in the world of domestic agricultural policies linked through world commodity markets. Use of analytical techniques in intermediate microeconomics and a general understanding of comparative advantage are the basic requirements.
ECON 642 ADVANCED STUDIES IN INSTITUTIONAL ECONIMICS Analysis of demand with emphasis on the theory of consumption decisions, the development and estimation of models, and the assessment and interpretation of empirical results. Topics will include the following: Demand system specification. Duality and flexible functional forms. Separability and aggregation. Dynamic demand models. Household consumption models, demographics, and equivalent scales. Cost-of-living indices and standard of living measurement. Quality of goods. Empirical applications with emphasis on food demand.
ECON 643 ADV.STUDIES IN ECONOMIC HISTORY This course is designed to familiarize students with the classic works and most up-to-date controversies within the field of economic history. Major classical texts in economic history will be taken as a springboard for discussing contemporary issues not only in economic history but also in political economy and economic thought. The now-classic three-volume study of Fernand Braudel, the prominent French historian, will be the basic reading for the course. In addition, the works of Hicks, Lane, North, Polanyi, Schumpeter, Steensgaard, Veblen will be familiarized.
ECON 644 GAME THEORY AND APPLICATIONS No data is available for the course.
ECON 645 APPLIED NONLINEAR TIME SERIES ANALY. This course presents definitions and evidence of business cycle non-linearity (Asymmetry); implications of non-linearity in economics and finance; empirical non-linear models; non-linearity tests against specified and unspecified alternatives.
ECON 647 POLITICAL ECONOMY OF THE MIDDLE EAST This is a graduate level course on the political economy of the contemporary Middle East. It should be noted that Middle east is here broadly defined to include also North Africa. First, the nineteenth and twentieth-century historical experiences of various Middle Eastern countries will be surveyed without losing track of the elements that have constituted this geography to some extent as a region with a common denominator. The encounter with modernity of various empires in the course of late eighteenth and early nineteenth century will be taken as a point of departure. The formation of nation-states and national economies in two successive phases, firstly as a response to the challenge of the Great Depression, and secondly as a consequence of the national liberation movements of the post World War II will be studied. In order to assess the legacy of state formation and economic transformation, the tools of political economy and development economics will be jointly deployed. Finally, the future prospects of the Middle East within the context of a new world order will be assessed.
ECON 650 ECONOMICS OF UNCERTAINTY&INFORMATION The course deals with how optimization takes place in the capital, labor and lemmon markets under certainty. Also, problems of moral hazard and adverse selection are introduced.
ECON 651 ADVANCED INDUSTRIAL ORGANIZATION Diverse mathematical topics within advanced micro theory like oligopoly, strategic behavior, firm structure and industrial economics related topics in macro and international dimensions. Students will test different hypotheses by econometric methods using real data.
ECON 655 TURKISH ECONOMIC HISTORY No data is available for the course.
ECON 658 SEMINAR IN GROWTH THEORIES No data is available for the course.
ECON 659 MATHEMATICAL ECONOMICS I Pure exchange economics: Competitive equilibria and the core. Elementary topological properties of Euclidean spaces. Equilibria and fixed points. Convex analysis: Intrinsic core and linear accessibility; separation and support theorems; extreme points. Continuity of correspondences. Sperner's Lemma; KKM Theorems, Brouwer, Kakutani and Ky Fan fixed point theorems.
ECON 660 APPL. COMPUTABLE GEN.EQUILIBRIUM MODEL No data is available for the course.
ECON 663 P. ECON.I.SOC.SIN.1945 1:USA, EU., JA. No data is available for the course.
ECON 667 DEVELOPMENT ECONOMICS The concept of development; historical aspects of economic development; the extent of development gap among countries, measurement of development. Major theories of development; structuralist and neoclassical approaches; dependence theories. Main policy issues; income distribution and poverty, population growth, employment, migration, trade and industrialization, agriculture, stabilization policies, external debt.
ECON 668 NEW TRENDS IN ECONOMIC THEORY No data is available for the course.
ECON 673 NEW PERSPECTIVES IN ECONOMIC HISTORY I No data is available for the course.
ECON 680 TIME SERIES ECONOMETRICS Univariate time series models; ARIMA modeling, Bob-Jenkins methodology. Dterministic and stochastic trends. Non-stationary and unit roots; testing and model selection. VAR models; structural VARs, innovation accounting. Cointegration; the Johansen method.
ECON 681 MACROECONOMETRICS Advanced time series analysis as applied macroeconomic problems.
ECON 682 MICROECONOMETRICS Estimation of Probit, Logit, Multinomial, Multivariate, Tobit, Generalized tobit, simultaneous probit and tobit, random and fixed effects models.
ECON 683 APPLIED ECONOMETRICS I No data is available for the course.
ECON 684 APPLIED ECONOMETRICS II No data is available for the course.
ECON 685 TOPICS IN TIME SERIES ECONOMETRICS This course considers vector autoregression, structural vector autoregression, innovation accounting, cointegration in a VAR framework, testing and modeling using the Johansen approach, dynamic panel data models, estimation and testing for unit roots in panel data.
ECON 691 ECONOMICS OF TECHNOLOGY POLICY Neo-classical and evolutionary theories of science and technology policy. National and international systems of innovation. Science and technology policies in developed and newly industrialized countries. Comparative analysis of science parks and technoparks. The aims and means of technology policy in Turkey. National system of innovation in Turkey: institutional structure, agents, and policies. Seminars by relevant policy institutions (TUBITAK, TTGV, DPT, KOSGEB, UNIDO, etc.) and R&D institutions on their structures and activities.
ECON 692 EVOLUTIONARY ECONOMICS The main objective of this course is to enable students to understand concepts, methods and results of evolutionary analysis of technical change and economic dynamics. Students examine how evolutionary approaches can be used to further the understanding of complex processes and industrial dynamics (selection, competition, innovation, variety-creation, learning, etc.) that transform economic and social structures. The course includes microsimulation exercises on the computer to allow students to explore evolutionary theories and applications of these in an active way.
ECON 695 INDEPENDENT STUDY IN ECONOMIC THEORY The aim of this course is to improve and to test the knowledge of the student in three main fields of economic theory. The student is expected to study independently, and to take a written exam in the following fields: microeconomics, macroeconomics, and econometrics
ECON 696 GRADUATE SEMINAR IN ECONOMICS No data is available for the course.
ECON 697 BEHAVIORAL ECONOMICS No data is available for the course.
ECON 698 LABOUR MARKET ECONOMICS An up-to date review of modern labor market theories, related policy issues and applications, as well as methods of findings of empirical research, including national and regional level analysis of these markets both in developed and developing countries. Open to economic and administrative sciences majors as well as to students from computer science, regional planning and engineering.
ECON 699 PH.D. DISSERTATION This is the course assigned to Ph.D. students during the preparation of their theses.


M.Sc. with thesis
The Master’s degree with thesis requires completion of three compulsory courses including macroeconomic theory, microeconomic theory, and econometrics, one restrictive elective in mathematical economics, three elective courses and successful submission and defense of a Master’s thesis. According to the METU Graduate Programs Directive, the normal duration of the program is four semesters (except the time spent in Academic Deficiency program). The maximum duration of the program under exigencies is six semesters. The students in this program must complete credited courses and the seminar course in four semesters.

M.Sc. without thesis
The Department of Economics also offers a Master’s degree without thesis. In this program students take three compulsory courses that include macroeconomic theory, microeconomic theory, and econometrics, one restrictive elective in mathematical economics, and six elective courses. The students must complete a term project in this program. This track is typically preferred by students who do not plan to continue to pursue a Ph.D. degree in Economics. According to the METU Graduate Programs Directive, the normal duration of the program is two semesters (except the time spent in Academic Deficiency program). The maximum duration of the program under exigencies is three semesters.

Academic Deficiency Program in M.Sc. (with and without thesis)
Candidates to the M.Sc. programs who do not have any economics background may be accepted conditional on completing an Academic Deficiency Program. The Academic Deficiency program duration is a maximum of two semesters, and includes Econ 201 (Microeconomic Theory I), Econ 202 (Macroeconomic Theory I), Econ 301 (Introduction to Econometrics I) and Econ 302 (Introduction to Econometrics II). With the student’s advisor’s guidance, the student may be asked to take additional courses. In this program, the minimum passing grade in undergraduate courses is CC, in graduate courses it is CB. The student must maintain a GPA of at least 2.50 in Academic Deficiency Program to continue to the M.Sc. program.

Ph.D. on M.S.
The Ph.D. on M.S. program attracts students who are interested in further specialization in economics. The graduates are likely to become academics and experts in their field of specialization. Students will be accepted to the Ph.D. on M.S. program after obtaining an M.S. Degree or an equivalent (to be approved by the Department). The Ph.D. on M.S. program students take three compulsory courses in macroeconomic theory, microeconomic theory, and econometrics, and four elective courses approved by the Department (a total of at least seven credited courses). The degree is granted upon successful completion of coursework and preliminary examinations, as well as successful defense and submission of a Ph.D. thesis. According to the METU Graduate Programs Directive, the normal duration of the program is eight semesters (except the time spent in Academic Deficiency program). The maximum duration of the program under exigencies is 12 semesters. The students in this program must complete credited courses and the seminar course in four semesters.

Academic Deficiency Program in Ph.D. on M.S.
Candidates to the Ph.D. on M.S. program who do not have any economics background may be accepted conditional on completing an Academic Deficiency Program. The Academic Deficiency program duration is a maximum of two semesters, and includes Econ 501 (Microeconomic Theory I), Econ 502 (Macroeconomic Theory I), and Econ 507 (Econometric Methods I). With the student’s advisor’s guidance, the student may be asked to take additional courses. In this program, the minimum passing grade in undergraduate courses is CC, in graduate courses it is CB. The student must maintain a GPA of at least 2.50 in Academic Deficiency Program to continue to the Ph.D. program.

Ph.D. on B.S.

The Economics Department also offers a Ph.D. on B.S. degree. Students will be accepted to the Ph.D. on B.S. program directly after obtaining an undergraduate degree. The Ph.D. on B.S. program students take three compulsory courses in macroeconomic theory, microeconomic theory, and econometrics, and 11 elective courses approved by the Department (a total of at least 14 credited courses). The degree is granted upon successful completion of coursework and preliminary examinations, as well as successful defense and submission of a Ph.D. thesis. According to the METU Graduate Programs Directive, the normal duration of this program is ten semesters (except the time spent in Academic Deficiency program). The maximum duration of the program under exigencies is 14 semesters. The students in this program must complete credited courses and the seminar course in six semesters.

Academic Deficiency Program in Ph.D. on B.S.

Candidates to the Ph.D. on B.S. program who do not have any economics background may be accepted conditional on completing an Academic Deficiency Program. The Academic Deficiency program duration is a maximum of two semesters, and includes Econ 201 (Microeconomic Theory I), Econ 202 (Macroeconomic Theory I), Econ 301 (Introduction to Econometrics I) and Econ 302 (Introduction to Econometrics II). With the student's advisor's guidance, the student may be asked to take additional courses. In this program, the minimum passing grade in undergraduate courses is CC, in graduate courses it is CB. The student must maintain a GPA of at least 2.50 in Academic Deficiency Program to continue to the Ph.D. program.

A number of assistantships are available for outstanding graduate students.

Applications to the Graduate Programs of the Department of Economics are realized through the METU Graduate School of Social Sciences: http://sbe.metu.edu.tr/

For more information and graduate program directives

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(TR)   http://oidb.metu.edu.tr/orta-dogu-teknik-universitesi-lisansustu-egitim-ogretim-yonetmeligi

For more information please follow the links below:

Who can apply How to apply Required documents for application Application Criteria Important Dates