This module will address both the fundamental and applied aspects of macroeconomic theory. In particular, the module will focus on:
- introducing the modern theory of expectations and economic dynamics
- using this approach to think about short run fluctuations
- studying the role of macro policy on short run fluctuations
The module will review the so-called modern approach to aggregate demand and aggregate supply. This entails incorporating into the classical approach to aggregate supply and aggregate demand insights from Keynesian economics. This will serve as a base to discuss the role of macro-policy in controlling for fluctuations in output and employment.
This module covers intermediate microeconomics including general equilibrium analysis, welfare economics, elementary game theory, and strategic behaviour of firms.
Econometric Theory I
This module generalises and builds upon the econometric techniques covered in the year one module, Mathematical Economics and Econometrics. This will involve introducing a number of new statistical and econometric concepts, together with some further development of the methodology that was introduced in year one. The multivariate linear regression model will again provide our main framework for analysis.
Econometric Theory II
This module introduces you to a range of statistical techniques that can be used to analyse the characteristics of univariate economic time series. The basic theoretical properties of time series models are discussed and we consider methods for fitting and checking the adequacy of empirical time series models. Methods of forecasting future values of economic time series are then considered.
Applied Econometrics I
An introduction to the theory and practice of econometric methods, focusing on regression analysis and its application to economic situations. This module will pay particular attention to the principles of estimation and inference in the multiple regression model, and will rely on illustrations and intuition to develop understanding of the techniques and their interpretation.
You will deepen your understanding of the material covered in class via a series of 'hands-on' computer classes using specialist econometric software (STATA) and a set of tutorials that will review worked examples.
Applied Econometrics II
An introduction to the theory and practice of econometric methods, focusing on regression analysis and its application to economic situations. It will focus on practical issues relating to data modelling and issues relating to model specification and testing.
It will also introduce you to regression analysis and forecasting using time series data. It will rely on illustrations and intuition to develop understanding of the techniques and their interpretation. You will advance your understanding of the material covered in class via a series of 'hands-on' computer classes using Stata. A set of tutorials will also examine topics discussed in the lectures through worked examples.
Advanced Development Economics
This module adopts a broad focus on factors influencing growth and development. Topics covered include macroeconomic policies, aid, debt, trade; growth experiences in East Asia, China and Africa.
Advanced Econometric Theory
This module generalises and builds upon the econometric techniques applied to the multivariate linear regression model covered in the year two module, Econometrics I. This will involve introducing a number of new statistical and econometric concepts.
In particular, we study large sample, or asymptotic, theory. This is needed in order to obtain tractable results about the behaviour of estimators when the standard modelling assumptions - which frequently cannot be verified in practice - are relaxed.
Advanced Experimental and Behavioural Economics
This module provides a window on three important sub-areas of experimental and behavioural economics. The first focuses on design issues and individual decision-making, the next two sections focus on applications to the study of strategic behaviour and market behaviour.
You do not need to have studied experimental or behavioural economics before because all topics will be introduced at a level that will be accessible to the newcomer. The module is, nevertheless, suitable as a sequel to the year two module Experimental and Behavioural Economics because the contents of the two modules cover distinct, but complementary, topics.
Advanced Financial Economics
The module covers:
- saving, focusing on how agents make intertemporal decisions about their savings and wealth accumulation
- saving puzzles and household portfolios, focusing on credit markets and credit markets imperfections, and why do households hold different kinds of assets
- asset allocation and asset pricing, focusing on intertemporal portfolio selection, asset pricing and the equity premium puzzle
- the role of behavioural finance in explaining stock market puzzles
Advanced International Trade Theory
The module covers:
- models of intra-industry trade
- trade policy in oligopolistic industries
- mathematical enterprises
- testing trade theories
- the WTO and "new issues"
Advanced Labour Economics
The module covers an economic analysis of the labour market, with an emphasis on policy implications and institutional arrangements.
This module covers:
- dynamic general equilibrium models, focusing on how the time path of consumption, and saving, is determined by optimising agents and firms that interact on competitive markets
- growth in dynamic general equilibrium, focusing on the Solow model and the data, and the role played by accumulation of knowledge (endogenous innovation) in explaining long run growth
- Real Business Cycles (RBC), focusing on how the RBC approach accounts for business cycle fluctuations, and what links short run fluctuations and growth processes
Advanced Mathematical Economics
The module is intended to provide an introduction to mathematical techniques used in economics. In particular, examples of economic issues that can be analysed using mathematical models will be discussed in detail.
Particular attention will be given to providing an intuitive understanding of the logic behind the formal results presented. Students who wish to pursue a higher degree in economics will find the module particularly useful.
The module will cover topics in advanced microeconomics and decision theory. The precise content may vary from year to year, but the module will start from the basis established by the Microeconomic Theory module.
Advanced Monetary Economics
This module will provide an outline of the elements of monetary theory and of theoretical policy issues.
Advanced Public Economics I
The module will introduce some major themes of public economics, using microeconomic tools to analyse public policy. The equity and efficiency implications of policies will be examined within an economic framework.
Advanced Time Series Econometrics
This module is a continuation of the module on time series analysis. While the earlier module was devoted to basic time series model building methodology, this module concentrates on those developments which can be applied in the subject of economics.
In particular, the emphasis will be on aspects of the behaviour of typical economic time series, and the implications of that behaviour in practical analysis, such as the construction of models linking economic time series.
The key issues addressed will be the identification of non-stationarity through the construction of formal tests and the implications for modelling with non-stationary data. Particular attention will be paid to the contributions of Sir Clive Granger to the spurious regression problem and to cointegration analysis, for which he was ultimately awarded the Nobel Prize.
This module is a general introduction to the economic problems of developing countries. The module will cover such topics as:
- the implications of history and expectation
- poverty, income distribution and growth
- fertility and population
- employment, migration and urbanisation
- markets in agriculture
- agricultural household models
- risk and insurance
Economic Policy Analysis
This module addresses a series of topics in economic policy with the specific intention of providing a critical appraisal of the grounds for policy intervention and the tools for policy appraisal. For example, how can we be sure that a policy change had the expected effects? The policies considered focus around the theme of increased participation in international markets. For example, what are the effects of trade liberalisation when firms are different? What are the effects of trade openness on economic growth? What is the relationship between trade, foreign interventions and domestic conflict? This module is designed to demonstrate the applications of the knowledge developed during the Economic Data Analysis module and to develop critical-appraisal skills that you will use later as part of your ERM project and in the dissertation.
Economic Policy Analysis is usually taught by Professor Richard Kneller, whose research focuses on firm behaviour and the impact of that behaviour on economic growth. He has published widely in international journals including the Journal of International Economics, the Economic Journal and the European Economic Review.
Environmental and Resource Economics
This modules will look at:
- market failure and the need for environmental policy - the Coase theorem
- instruments of environmental policy - efficiency advantages of market instruments
- applications of market instruments, especially the EU Emission Trading Scheme
- fisheries - the open access problem and rights-based policies
- valuation of the benefits of environmental policy
- biodiversity and its benefits
- international trade in polluting goods
- mobile capital: race to the bottom?
Experimental and Behavioural Economics
This module provides a foundation in behavioural economics and the role of experimental methods in economics. The traditional approach in economics is to explain market outcomes and economic decision-making using simple theoretical models based on perfectly rational, self-interested agents who maximise their well-being by carefully weighing up the costs and benefits of different alternatives. Behavioural economics, on the other hand, aspires to relax these stringent assumptions and develop an understanding of how real people actually make decisions.
The module will introduce you to behavioural and experimental economics, discuss these fields from a methodological perspective and examine several areas of economic analysis in which they are applied. This will include individual choice under risk and uncertainty, decision-making in strategic situations and competition in markets.
This module will offer an introduction to some theoretical concepts related to the allocation of risk by financial institutions. Then it will apply these concepts to the analysis of financial and banking crises.
This module provides an economic analysis of the theory and practice of organisation of firms and industries. It explores the nature of competition among firms and their behaviour in various markets, with the specific emphasis on imperfectly competitive markets. Tools for both empirical and theoretical approaches to the analysis of industries are covered.
Starting from a detailed analysis of market structures, the module goes on to discuss various aspects of firms' behaviour and their influence on market outcome. Among the behaviours covered in the module are price discrimination, vertical integration, advertising, research and development activities and entry and exit of firms. Government regulation of industries is also discussed.
This module covers both theoretical and experimental research on a number of Industrial Organisation topics. Rather than give a broad overview of the field the module focuses on a few topics in depth. Examples of topics covered in previous years are: dynamic oligopoly models, models of endogenous commitment, price competition with consumer inertia, anti-trust leniency policies. Lectures are organised around two or three key readings, usually recently published research papers, and cover necessary theoretical background for a detailed discussion of the key readings. As part of the module students also give group presentations on an assigned paper. Thus, the module develops an understanding of research methods and skills applied to questions in Industrial Organisation.
Industrial Organisation is usually taught by Professor Martin Sefton. Professor Sefton has research interests in the area of game theory and experimental economics. He has published in leading journals and is on the editorial board of the journal Experimental Economics.
International Money and Macroeconomics
This module will provide an introduction to international monetary issues, including the determination of exchange rates, and the functioning of the international monetary system.
This module is an introduction to international trade theory and policy. It covers the core trade theories under perfect and imperfect competition and applies them to understanding the pattern of trade, gains from trade and modern topics like foreign outsourcing. On the policy side, it examines the effects of different government trade policy instruments and the role of international trade agreements.
International Trade Policy
This module looks at:
- trade policy - theory and evidence
- trade policy and imperfect competition
- trade and distortions
- the political economy of protection
- trade policy reform
Introduction to Political Economy
This module is concerned with the effect of political and institutional factors on economic variables as well as with the study of politics using the techniques of economics.
This module provides an introduction to the economics of the labour market. We will look at some basic theories of how labour markets work and examine evidence to see how well these theories explain the facts.
Particular attention will be given to the relationship between the theory, empirical evidence and government policy. The module will refer especially to the UK labour market, but reference will also be made to other developed economies.
This course will provide a foundation for the monetary economics modules in the third year and is a complement to financial economics for the second and third years. It will cover topics such as the definitions and role of money, portfolio choice, financial markets and banks, central banks and monetary policy, and the monetary transmission mechanism.
Under these headings the module will address issues of theory, policy and practice relating to recent experience in the UK and other countries. The module will feature some current debates and controversies based on recent events.
Numerical Methods in Economics
This module covers the following:
Static numerical methods
- Numerical solution methods
- Numerical static optimisation methods
- Applications: resource allocation, computable general equilibrium
Dynamic numerical optimisation
- Discrete dynamic programming
- Implementation of the methods
- Applications: optimal growth, rational expectations, asset management
Agent-based economic modelling
- Foundations of agent-based modelling
- Basics of computer programming
- Applications: evolutionary games, markets
The module will cover the following:
- The rational political individual?
- Voter participation
- Collective action and the role of the state
Core political economy
- The economic approach to politics
- Political aspects of economics: rights and the limits of the state
- Political aspects of economics: inequality and the duties of the state
Political economy in action
- Political economy in action: some current issues in applied political economy
Public Sector Economics
This module looks at:
- public finances in the uk
- market failures
- fundamental theorems of welfare economics
- social welfare functions
- public goods
- natural monopolies
- public choice
- social insurance: social security, taxation and equity
- excess burden of taxation and tax incidence
Topics in Econometrics
This module focuses on a range of econometric methods used in policy evaluation and in the identification and estimation of causal effects. Topics to be covered include:
- potential outcomes framework
- regression analysis and matching
- instrumental variables
- regression discontinuity
The above is a sample of the typical modules that we offer but is not intended to be construed and/or relied upon as a definitive list of the modules that will be available in any given year. Due to the passage of time between commencement of the course and subsequent years of the course, modules may change due to developments in the curriculum and information is provided for indicative purposes only.