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​Up to two electives may be chosen from other taught postgraduate curricula offered by HKU Business School under the advice and approval of the Programme Directors concerned. Please refer to section at the end of this page for further details.

Elective Courses

The organization component of this course discusses different theories of the firm, including the property rights approach and the incomplete contracting model. It forms the basic framework that is used to understand how various decisions are made within a firm. The incomplete contracting model can be further extended to study financial decisions such as capital structure, bankruptcy, and corporate voting. The strategy component uses game theory to understand how firms formulate strategies to 2 cope with different competitive forces. Cases are used to illustrate how these strategies work. Examples include the meet-the-competition and most-favored-customer contractual clauses.

This course covers alternative forms of economic organizations, including the contractual nature of the firm, the meaning of monopoly and patent rights, the extraction of consumer surplus, and the purpose of integration and franchise arrangements. Government regulations will be discussed whenever appropriate.

This course examines the operation of labour markets. The analytical approach is largely based on microeconomic theory. Attention is also given to issues involved in drawing inference from labour market data. Topics include: the theory and estimation of labour demand and supply, the selection problem, the structure of wages, the choice of labour contracts, investment in human capital, immigration and emigration, worker turnover and labour market frictions, labour market discrimination, and unemployment.

This course examines various current topics and economic development problems facing East Asian economies. This course is mainly empirical. The economies we consider include China, Hong Kong, Taiwan, South Korea, Japan, Singapore and selective members of the ASEAN. The topics to be covered will vary and be updated from year to year. Some of the main current economic issues include the competitiveness of East Asian economies, proposals for free trade areas, foreign direct investment and the economic strategy of multinational corporations, sources of past and future economic growth in East Asia, industry structure, technology policies, the Asian financial crisis, banking problems and exchange rate regimes.

This course covers the positive and normative analyses of the public sector in relation to efficiency and equity. It provides a better understanding of the making of public policy under asymmetric information and limited commitment, and the role of incentives in public administration. Topics include: market failure, welfare criteria, public goods and externalities, social choice and voting, income distribution, public pricing and investment, cost-benefit analysis and project appraisal, and the regulation of public enterprises.

This course reviews the economic transformation of the People’s Republic of China and its implications. China’s experiences are subjected to theoretical and empirical analysis by using modern economic methods. The course covers structural and institutional changes as well as current debates on reform and policy. Topics include: history, geography, population, rural reform, industrialization, urbanization, enterprise reform, foreign trade and investment, financial system, and regional development.

This course focuses on financial decisions in the modern corporation. Topics include: capital budgeting, cost of capital, capital structure, dividend policy, public offerings, and incentives and contacting problems. There will also be some treatment of mergers and acquisitions, and corporate governance. The objective of the course is to integrate these various topics into standard theories of risk and return and the valuation of assets in order to provide a theoretical framework for considering corporate finance problems and issues, with an understanding of how it applies to the real world.

This course studies the relationship between the state and the market economy, especially highlighting the costs and benefits of economic policy interventions. Topics include: the economic value of the rule of law, property rights and institutional change, promoting competition and regulating markets, rules versus discretion in monetary, fiscal and exchange rate policy, and regionalism versus federalism. Selected case materials based on historical and contemporary examples will be used in classroom discussions, including international examples with emphasis on Hong Kong, China and Asia.

This course provides an overview of how economics play a role in the health care sector. Emphasis will be placed on contrasting the viewpoints of free-market economists and public health practitioners. Among the topics we discuss are the unique features of health in economic modeling, the demand for health and health care, equity and efficiency issues, forms of health care financing, an overview of costeffectiveness and cost-benefit analysis, and National Health Accounting. Examples are drawn from local and international contexts.

This course covers the economic evaluation of projects from a public sector viewpoint using microeconomic tools. It explores the normative aspects of evaluating public projects and policies, the measurement of welfare change and public investment criteria. The concept of opportunity cost and benefit will be examined. Economic evaluation of government projects and Build-Operate-Transfer infrastructure projects will be discussed.

This course covers the theory and practice of modern transport economics using microeconomic tools. It views the buyer of transport services – be it passenger or freight – as playing a dual consuming and producing role. Topics include widgets versus transport, transport costs (internal and external), travel demand and the value of travel time, regulation and competition, and the cost-benefit analysis of transport projects. Contemporary issues in transport will also be analyzed from a transport economics methodological and welfare economics approach.

In this course, we introduce and examine the principal ideas held by radical thinkers such as Marx, Velben, Commons, Robinson, and Sen in their critiques of capitalism and of neoclassical economics. The discourse is organized in the following topics: endogeneity of preferences, theories of wants and needs, theories of justice and fairness, macroeconomic instability of capitalism, socialism as an alternative to capitalism, and nationalism versus internationalism. The course emphasizes the use of modern analytic tools and will make use of, in particular, the recent progress in behavioral economics.

This course presents both static and dynamic general equilibrium based on optimization to study interrelated macroeconomic issues. In particular, Pontryagin optimal control theory and Bellman certainty and stochastic dynamic programming models will be covered. Such control theory and recursive multi-stage optimization methodology will be applied to important macro topics such as economic growth and employment.

This course provides in-depth discussions on selected topics in investments, equilibrium and no arbitrage asset pricing theory. We will derive classic results on the mean-variance frontier, and asset pricing theory including the Capital Asset Pricing Model, Arbitrage Pricing Theory, Merton’s continuous time model, the Black-Scholes option pricing models, and the Cox-Ingersoll-Ross term structure model. The objective of this course is to prepare candidates to read and appreciate research papers in academic journals and also provide a theoretical foundation to conduct advanced research in financial economics.

This course will examine the progresses and challenges of China's rapid economic growth toward one of the largest economies in the world and its deepening integration into the global trade and financial systems. It will focus on China's interactions with the global economy and their domestic and international implications. The topics will include: Review of China's foreign trade and investment; reform, opening, growth and efficiency of China's domestic and external sectors and their impacts on the structure of China's balance of payments; China's currency and monetary policies and their impacts on the domestic and internal trade and finance; China's capital market reform and development and their domestic and international implications; China's role in maintaining international financial order.

This is a special course that deals with various topics of microeconomics. Topics covered may vary from year to year, depending on the research interests of the instructor. However, topics covered in ECON6002 will not be covered in this course.

This is a special course that deals with various topics of macroeconomics. Topics covered may vary from year to year, depending on the research interests of the instructor. However, topics covered in ECON6052 will not be covered in this course.

This course covers topics pertinent to the development of low-income countries: economic growth, measurements of economic inequality, inequality and development and their inter-connections; poverty and under-nutrition, population growth and economic development, rural and urban, markets in agriculture, land, labor, credit and insurance, international trade, and trade policy. The course also teaches how to use data to conduct development analyses such as poverty assessments and impact analysis of development projects.

This course is divided into two parts. Part I of the course introduces graph theory and game theory. Graph theory is used to describe the structure of a network and game theory to understand how people behave in network with different structures. Part II of the course focuses on analysing network structures and understanding behaviour in different network structures.

Building on student’s previous background in Economic Forecasting, this course explores advanced topics in Economic Forecasting. These advanced topics may include forecasting when the relationship appears unstable, when we have a large number of candidate predictors, when real time data are available for updating our forecast, etc. We will also discuss the issues on forecasting various variables, such as output, inflation, the price of oil, real estate prices, interest rates, etc. While theory will be covered, our focus is in applications.

Prerequisite: ECON6037 Economic Forecasting

This course develops a solid understanding of environmental economics. The course covers important environmental issues including overuse of the environment (such as overfishing and excessive air pollution emissions) and too little provision of environmental public goods (such as preservation of endangered species habitats and investment on biodiversity). This course is designed to cover an indepth discussion of an economic approach to environmental problems in order to show how factors such as property rights and transaction-cost considerations can encourage efficient natural resource use through environmental markets. For environmentalists, this course also offers concrete solutions to illustrate the importance of environmental entrepreneurship.

This is a special course at the MEcon level that deals with various topics of microeconomics or macroeconomics, building on candidates’ previous background in Microeconomic Analysis (ECON6021) and Macroeconomic Analysis (ECON6022). Topics covered may vary from year to year, depending on the research interests of the instructor. Candidates have the opportunities to apply their economic knowledge and research methodology in analyzing real-world problems (such as the economic impact of a specific business practice or government policy) in a theoretically and/or empirically rigorous manner.

Prerequisite: ECON6021 Microeconomic Analysis and ECON6022 Macroeconomic Analysis or equivalent

This is a course in money and banking at the masters or first-year graduate level. It discusses the role of money and the banking system in the economy and how they affect aggregate economic activity like inflation, interest rates and output growth. Topics include theories of money demand and supply, theories of interest rates, issues related to conduct of monetary policy, such as targets and indicators, rules versus discretion, time inconsistency, credit market imperfections, banking crisis, bank regulation, deposit insurance, among many others.

In this course, we study how households and firms choose to agglomerate in confined urban areas and how the two choices interact to give rise to the spatial structure of economic activities. It examines the question of the where of economic activity, a question largely ignored in other branches of economics. Topics include the determination of the internal structure of cities, the sources and consequences of agglomeration economies, how cities may be too crowded or too sparsely populated, urban economic growth, urban labor market, urban transportation, and special topics, including but not restricted to urban crime and the future of cities.

Prerequisite: ECON6021 Microeconomic Analysis or equivalent

The magnitude of demographic changes, including falling birth rates and rising life expectancy, has been substantial in many societies. Why do population changes of such magnitude arise, and how do they affect individual behavior of households and firms, as well as the aggregate economy? This course examines these demographic changes, their consequences, and related policy issues. We first look at the time trend and cross-country differences in demographic variables such as mortality, fertility, immigration and age structure. We then study economic consequences of demographic changes, including demographic dividend, saving and retirement decisions, human capital accumulation, and technological progress. Finally, we examine policy issues related to population aging, such as retirement pension and health care reform.

Prerequisite: ECON6021 Microeconomic Analysis and ECON6022 Macroeconomic Analysis or equivalent

This course provides a systematic, comprehensive, and in-depth review of mechanism design and is divided into three parts. Part I of the course covers theory of mechanism design including the following topics: Mechanism Design Basics, Myerson's Lemma, Algorithmic Mechanism Design, RevenueMaximizing Auctions, Simple Near-Optimal Auctions, and Multi-Parameter Mechanism Design. Part 8 II of the course showcases applications of mechanism design with the following case studies: Spectrum Auctions, Mechanism Design with Payment Constraints, and Kidney Exchange and Stable Matching. In Part III of the course, students present their work on a research question and demonstrate their research ability in workshops.

Prerequisite: ECON6021 Microeconomic Analysis or equivalent

The course introduces behavioral economics and tries to keep it in perspective. Behavioral economics and rational models of economics are considered to be complementary instead of competing. Rational models are covered in the course to provide us a solid background to appreciate the contributions of behavioral economics. These contributions help us better understand decision-making under certainty, judgment under risk and uncertainty, decision-making under risk and uncertainty, and intertemporal choice. Although rational models are not perfectly consistent with actual behavior, they can be used to show how choice and decision can be improved.

*The above course list is subject to change in future intakes. 


MAcct / MFin / MFFinTech / MGM / MSc(BA) / MSc(Mktg) Electives

You can take up to two electives from the Master of AccountingMaster of FinanceMaster of Finance in Financial TechnologyMaster of Global ManagementMaster of Science in Business Analytics or Master of Science in Marketing programme at HKU. Enrollment in electives from other programmes is subject to seat availability and approval by the Programme Directors concerned based on your profile, capabilities and performance in the MEcon programme.

Since enrollment in other taught postgraduate electives is not guaranteed, you should always choose three MEcon electives during the course enrollment in our programme. Course enrollment results of other programmes may only be confirmed after that course has started. If your enrollment is successful, you can drop the MEcon elective(s) and enroll in the other taught postgraduate elective(s).

It is your responsibility to make sure you obtain 60 credits to fulfill the graduation requirements and there is no overlapping of classes and exams in courses from different programmes.

*The list of available electives from other programmes may have prerequisite requirement(s) and is subject to change for future intakes.