Applied Economics Program

The Bachelor of Arts in Applied Economics is a three-year English language program. The aim of the program is to give students a firm background of core microeconomic and macroeconomic theory, providing the empirical skills that are essential to understand and interpret the issues and challenges in economy. Students are offered courses in economics (micro- and macroeconomics), methodology (mathematics, statistics, econometrics), social sciences and management. This degree gives a solid foundation for graduate studies as well as for variety of careers in government, business and the non-profit sector.

Short description of the courses

Mathematics I

Sequences, boundedness, monotonicity, the concepts of  limit and convergence. Functions of one variable, the concepts of limit and continuity. Differentiation and its applications. Monotone and convex functions. One variable optimization.

Vectors and matrices. Linear independence, rank of a matrix. The concept of inverse matrix. Systems of linear equations, the determinant. Eigenvalues and eigenvectors, the Spectral Theorem of symmetric matrices.

Functions of several  variables, level sets. Quadratic forms. Partial derivatives, the Jacobian and the Hessian. The chain rule. Unconstrained optimization. Constrained optimization and the concept of Lagrange-multipliers.

Basics of IT

This course provides an introduction of Information Technology, and shows the ways of how to be more efficient and up-to-date computer user. Students will also develop an understanding of how to search, and process data, present their ideas more effectively. Key applications at home, everyday life and business will be introduced.

Microeconomics I

This subject provides an introduction to basic decision problems consumers and firms face in the market place. Students can learn how to solve optimization problems and can get acquainted with economic approach. First students learn consumers’ consumption decision and firm supply decision, derivation of aggregate demand and supply, determination of equilibrium, and possibilities of disequilibriums. In addition to the basic analysis of competitive markets some basic problems of monopoly behavior are also covered.

Business Economics

The purpose of the course is to increase the understanding of the operation of business organizations.   Although firms differ in their size, corporate structure, strategic thinking, managerial behavior, etc., those trying to prosper in a market environment show quite a lot of similarities.

Upon successful completion of this course students will be able to identify trends affecting business, understand world economic systems and how they interact with and affect business, learn the different forms of business, understand what is needed to start a small business or to own a franchise and the importance of entrepreneurship in business. The role of ethics in business and socially responsible conduct of business will be emphasized. Students receive an introduction into marketing in the areas of marketing research, product development and pricing, distribution, and promotion, learn the fundamentals of management including leadership styles and skills, planning, organizing, controlling, directing, evaluating, and motivating. Human resources management and the effect of current technology on management will also be presented. Students will be knowledgeable of the financial aspects of business, which includes financial management, securities, and financial institutions; understand basic aspects of international business and will realize the importance of being sensitive to cultural differences.

Mathematics II

Infinite series, power series. Indefinite integrals, integration by parts. Definite integrals, the Fundamental Theorem of Calculus. Improper integrals. Multiple integrals over rectangular domains.

Experiments, chance outcomes and events. Sample spaces. The concept of probability. Counting sample points. Sampling with or without replacement. Conditional probabilities, the Bayes’ Rule.

Random variables, probability distributions and densities. Joint distributions, marginal distributions, independence. The mean and the variance. Chebyshev’s Theorem and the Law of Large Numbers.

Some important distributions: binomial, hypergeometric, Poisson distributions. The Poisson approximation of the binomial. The normal distribution and the Central Limit Theorem.

Microeconomics II

In this subject students can continue their study in microeconomics. The course covers various topics on decisions in uncertainty, in equilibrium and welfare analysis, strategic interactions, and input markets. Some interesting application of decision and game theory in the fields of public choice, law and economics as well as asymmetric information and information technology are also presented. 

Statistics I

The course introduces the basic statistical concepts and covers the procedures most frequently used in the descriptive analysis of cross-sectional and time-series data. The focus will be mainly put on the computation and interpretation of the most widely used statistical measures and some basic economic indicators that have importance in the socio-economic decision making process. In addition, the use of Excel will also be demonstrated.

Macroeconomics

This course will provide an overview of macroeconomic issues: the determination of output, unemployment, inflation and growth. Monetary and fiscal policies are also discussed. It introduces basic models of macroeconomics and illustrates principles using real-life examples.

Knowledge of macroeconomic principles is essential for understanding affairs in the modern world. Not only we encounter macroeconomic issues in the newspapers daily, but they do have an effect on our possibilities and standards of living.

The immediate objective of this course is to develop a structured way of thinking to understand and analyze macroeconomic and policy issues. Macroeconomics applies many often-heard concepts – income, consumption, investment, etc. - to construct a framework of the functioning of the economy as a whole. We introduce the principles of macroeconomics together with real-life examples, since the aim of the course is to give a better understanding of real-life trends.

Finance

In accordance with the general disciplines of the B.A studies, this course in Finance is about to deliver basic understandings in relation with money, inflation, interest, foreign exchange rate, the banking system,  monetary policy and business cycles. This knowledge will be essential during the further courses in International Business.

Corporate Finance

The aim of the course is to provide students with a comprehensive understanding of the principles and techniques of Corporate Finance and applying them to the main decisions faced by the financial manager. The concepts are immediately applicable to all firms, both large or small, privately run or publicly traded and involved in any industry - whether manufacturing, retail or service.

The course is divided into 3 main sections, beginning with the concept of valuation where topics covering time value of money and the valuation of income streams, share and bond valuations will be discussed.

The course will thereafter extend these principles in the second section to provide an in-depth discussion and critical analysis of the various techniques used in investment appraisal decisions: Net Present Value, Internal Rate of Return, Payback Period. These techniques will be applied to more complex investment proposals, including choices between alternative projects, investment timing decisions and decisions on whether to invest. The final section explores the relationship between risk and return, diversifiable and non diversifiable risks, and beta through the use of the Capital Asset Pricing Model (CAPM) to determine the Weighted Average Cost of Capital that financial managers use as a hurdle rate for project evaluation in order to achieve the ultimate aim of maximizing the value of the firm.

Foundations of Accounting

During the course basic accounting issues will be studied. This includes foundations, techniques (double-entry) and basic items of the financial statements such as: inventories, property, plant and equipment, receivables – payables, corrections, revenue recognition, etc. Some basic but more complex accounting issues will also be included (provisions, events after the balance sheet date, etc.) Although the course is not designed to explain a specific set of accounting regulation, the specific Hungarian rules will be discussed in brief.

Industrial Organisations

Industrial organization is about the microeconomic analysis of market structures with a strong emphasis on the application of oligopoly theories to various strategic decision problems including pricing, durability, research development, horizontal and vertical restrictions and agreements, cooperations, advertising, managing informational asymmetries, etc. The subject also covers regulatory issues related to antitrust and sectoral regulation. Modelling and solving problems are both covered.

 Operations Research

The course introduces some basic mathematical models and methods which are frequently and successfully applied in decision-making. The aim is to provide the students with the basic knowledge and skills of how various types of complex decision situations can be analyzed quantitatively by formulating them as mathematical models and then by solving these models with optimization methods.

Statistics II

The course is a direct continuation of Statistics 1. It serves as an introduction to sampling, statistical inference and statistical modeling. The focus will be mainly put on the logic of the methods to be covered, on the conditions of their application and on the interpretation of the statistical measures most widely used in socio-economic analyses. In addition, the use of Excel will also be demonstrated.

Introduction in Computational Economics

This course presents a variety of computational methods used to solve economic and financial problems. It emphasizes practical numerical methods and focuses on techniques that apply directly to economic analysis. This course also contains an introduction to MATLAB (using MATLAB, you can analyze data, develop algorithms, and create models and applications) and LaTeX (a high-quality typesetting system, the de facto standard for the communication and publication of scientific documents).

Economic Policy

After a short introduction (what economic policy is and who the main actors are) we start with the most important general questions of economic policy: what activities should be performed by the state, what kinds of problems arise in a market economy as a result of government intervention or of the lack of it? We continue with the international institutions and other international aspects (e.g. foreign capital) that constrain the national economic policy. From the 5th week we turn to specific fields of economic policy, we concentrate on the most important aspects of fiscal monetary and welfare policy, but cover other issues as well.

Econometrics I

The goal of this course is to provide students with the knowledge and tools to conduct their own empirical research in economics, to evaluate government and business policies, to perform forecasting, and to critically read statistical analyses by researchers and in the media.

Students will learn to use the computer as a tool for regression analysis, but more importantly we will focus on the proper interpretation of the underlying statistical models so that students understand when particular methods are likely to capture causal effects.

World Economics

The course is a very introductory one for those students specialized in economics or other social sciences, and who haven’t got any experience with models and theories about international economic relations. The course therefore deals with wide issues of international economics, international political economy and other subfields of economics on a very introductory level. It covers the basic mainstream models of international trade and trade policies, international finance, but also the historical development of the world economy and questions about international cooperation. Beside models the course also introduces the organizational structure of the world economy.

The course is organized as lectures, however students activity and presentations can be considered as extra points in the assessment.

History of Economic Thought

The course introduces students to the standard theories and mainstream economic views. It gives an overview of the formation and changes of the major paradigms from the early schools up to the emergence of the 20th century views. The theoretical contributions are discussed in the context of the political and philosophical debates and the economic issues of their times. Special attention will be given to the ideas of main system builders (i.e. Smith, Mill, Marx, Marshall, Keynes, Friedman etc.), and the potential policy consequences of theories.

Macroeconomic Model Building

This course has two parts. The first part is an introduction to the methods used while constructing RBC- type models; the second part applies these models to answer relevant economic questions. The focus will be on the theoretical aspects of the models and the tools required to build them and analyse them. More specifically, topics include basic model of the consumption/saving choice (two period model and infinite-period model), the labor/leisure choice, investment decisions, fiscal policy, monetary policy (nominal rigidities), OLG models.

Comparative Economics

The course starts with the analysis of the concepts of property rights and market coordination. Then it deals with the different forms of capitalist industrialization. Modern capitalism assumes different forms; we analyze the alternative models of the capitalist system.

Then we turn to the description of the socialist economy and polity. The socialist system is explained as an alternative form of industrialization under the circumstances of economic backwardness. This analysis rests on the concepts of Kornai’s shortage theory of socialism. The postsocialist transition has had to face the dilemma of simultaneity: the parallel processes of democratization, marketization and the remodelling of the welfare state. We deal with some of these problems: look at the political dynamics of economic reforms, the politics of privatization, and the contradictions of the post socialist welfare state.

Students wishing to apply for the BA in Applied Economics Programme must have: 

finished the secondary school and obtained a degree allowing them to continue their studies at the higher educational level in their home countries.

A good knowledge in Mathematics.

Successful entrance exam.

 Regarding the English language requirement:

either you have as a minimum B2 intermediate English language exam

or take and pass the English test as part of the entrance exam (it costs 20 EUR)