Economics BSc

This is a single semester introductory module in macroeconomics. Macroeconomics is the study of the aggregate economy, focusing on the cyclical pattern of aggregate output and co-movement of real and monetary aggregates in general equilibrium. 

This module introduces a series of basic models used in modern macroeconomics, with a particular focus on dynamic general equilibrium modelling tools and techniques necessary to build theoretical models.

This module is an introduction to microeconomics, including behaviour of firms and households in situations of competitive and imperfectly competitive markets.

This module aims to introduce you to the essential skills required for writing as an economist. It will be delivered in conjunction with Libraries, Research and Learning Resources (LRLR), who will cover content on key information skills relating to the library and learning resources.

It will give an introduction to the language of economics and basic research skills and how to write essays and exams. Among the topics covered will be:

• academic integrity and plagiarism
• time management
• writing essays
• writing quantitative projects
• presentation skills
• referencing and using the internet
• revision and examinations

This module aims to provide a means for enabling students to reflect on their personal development and the implications this might have for their future career paths. It will include:

• guidance on recording and evaluating skills
• guidance on careers from the Careers and Employability Service
• information, guidance and advice form a range of graduate employers and alumni

The first half of the module provides an introduction to the mathematical methods required for economic modelling, focusing on linear algebra, optimisation and their role in formulating and solving economic problems. The second half introduces the statistical methods and concepts most applicable in economics.

The analysis of economic data necessarily proceeds in an environment where there is uncertainty about the processes that generated the data. Statistical methods provide a framework for understanding and characterising this uncertainty. These concepts are most conveniently introduced through the analysis of single-variable problems. However, economists are most often concerned about relationships among variables.

The module builds towards the study of regression analysis, which is often applied by economists in studying such relationships.

The first half of the module provides an introduction to the mathematical methods required for economic modelling, focusing on:

• mathematical finance
• analysis of functions
• supply and demand
• matrix algebra
• differentiation
• elasticities
• maximisation/minimisation
• optimisation subject to constraints
• Lagrange multipliers
• integration

The second half introduces the statistical methods and concepts most applicable in economics. The analysis of economic data necessarily proceeds in an environment where there is uncertainty about the processes that generated the data. Statistical methods provide a framework for understanding and characterising this uncertainty.

These concepts are most conveniently introduced through the analysis of single-variable problems. However, economists are most often concerned about relationships among variables. The module builds towards the study of regression analysis, which is often applied by economists in studying such relationships.

This module focuses on a range of current issues facing the world economy, seeks to illustrate how economists model such issues, and examines potential policy responses. Example topics to be covered are:

• globalisation
• economic growth
• the global financial crisis
• the world economy
• emerging economic superpowers
• consequences of rising economic nationalism

This module is intended as a foundation for the understanding of modern economic theories and policies. It is concerned with the:

• different characters and workings of economies of the past
• changing ways in which economic questions have been interpreted and answered over time

As will be discovered, the 21st century Western views of everyday economic concepts such as ownership, money, exchange, work, poverty, industrialisation, economic growth and government are quite different from those expressed at other times and in other places.

In this module we will explore the long-run, historical determinants of the wealth of nations. We will begin by taking a long-run view on modern economic growth, showing how this has led to dramatic changes in the relative wealth of nations over the last 500 years.

We will then ask two key questions: why has modern economic growth started in some places rather than others? And why have some countries been able to catch up, while others have not? These investigations will improve our understanding of why some countries are much richer than others, and will give us some important insights on how to promote sustained growth in developing countries.

The module draws on a vibrant new literature in economics that looks at comparative development as the outcome of a long historical process, and uses techniques originally developed in economics to improve our understanding of history. Without going into the technical details, the module reviews the main findings of this literature, discusses their implications for modern development experiences, and lays out the main challenges for future research.

By providing an historical perspective on growth and development, the module will endow you with a better understanding of contemporary economic issues. It will also give you some exciting examples of how the economic techniques you will learn in later modules can be used to understand the world better.

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.

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.

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.

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.

The module continues on from Applied Econometrics 1, but moves the attention away from cross-section analysis of continuous dependent variables towards (a) time series analysis, (b) cross-section regressions with binary dependent variables, and (c) panel data analysis.

In part (a), lectures cover dynamic models, serial correlation, forecasting and (co)integration; part (b) studies the linear probability model, as well as logit and probit regressions; part (c) introduces basic panel econometrics covering the fixed effects and random effects models.

You will enhance your understanding of the material covered in the lectures via hands-on computer classes using Stata and in tutorials covering worked examples.

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
• famines

This module 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?

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 wellbeing 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 advanced economic analysis of the theory of organisation of firms and industries. It will analyse a variety of market structures related to the degree of market competition with a special emphasis on imperfectly competitive markets. It will also analyse issues related to the internal organisation of firms.

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.

This module covers: 

• Foundations:
  • 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 political economy

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 module 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.

This module looks at:

• public finances in the UK
• market failures
• fundamental theorems of welfare economics
• social welfare functions
• externalities
• public goods
• natural monopolies
• public choice
• social insurance: social security, taxation and equity
• excess burden of taxation and tax incidence

An independent research project, involving the application of techniques of economic analysis to a self-chosen research topic and the presentation of a written report. There will be lectures to provide general guidance on economic research methods and writing an undergraduate dissertation in economics.

Topics include:

• introduction to the dissertation
• types of dissertation
• literature reviews
• sources of data
• writing up your dissertation
• data entry and data management
• an introduction to STATA
• descriptive statistics
• practical issues in regression analysis
• model selection
• endogeneity bias

This module adopts a broad focus on factors influencing growth and development, concentrating on core economic policy areas and the role of international organisations.

Topics covered include macroeconomic policies, in particular exchange rates and the role of the IMF; aid policy and the World Bank, effects of aid on growth, macroeconomic and fiscal policy, and poverty; trade policy and performance and the WTO; economic reforms and growth experiences in East Asia, China and Africa; human development and the UN Sustainable Development Goals.

This module generalises and builds upon the material covered in the Econometric Theory I and II. In the first part of the module, we study large sample, or asymptotic, theory. This is needed in order to obtain tractable results about the behaviour of estimators and tests when the standard modelling assumptions - which frequently cannot be verified in practice - are relaxed.

The second part of the module continues the time series analysis taken in Econometric Theory II, with the emphasis on 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 discusses aspects of some of the main sub-areas of experimental and behavioural economics. This includes applications related to individual decision-making, strategic behaviour and market behaviour.

The module encourages reflection on both the role of experiments in economics and the assumptions that economics does (and should) make about people’s motivations. Both experimental economics and behavioural economics are still comparatively new fields within the wider discipline.

The module considers their potential and main achievements, relative to more traditional economic techniques. It encourages development of critical skills and reflection on specific research contributions in experimental and behavioural economics.

This module looks at:

• trade policy
• economic policy for trade and international factor mobility
• theory and evidence
• trade policy and imperfect competition
• trade and distortions
• the political economy of protection
• trade policy reform

This 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

This 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.

This 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.

This module provides a rigorous introduction to formal models of money in the macroeconomy. Following this, applications for areas of central banking, finance and international macroeconomics will be explored.

The module will introduce some major themes of the economic analysis of government. Using the tools of modern microeconomic theory, it will explore how government institutions are designed, how they could be designed better, and how they shape economic policy.

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 will introduce you to economic policy analysis.The first part of the module will focus on the role played by different institutional rules in shaping the behaviour of elected governments by providing incentives to elected governments.

The second part will cover post-crisis monetary policy; controlling money markets with excess reserves; spillovers of QE; effects of QE on asset and credit markets; low real equilibrium interest rates; uncertainty in monetary policy.

This module provides an advanced economic analysis of the theory of organisation of firms and industries. It will analyse a variety of market structures related to the degree of market competition with a special emphasis on imperfectly competitive markets. It will also analyse issues related to the internal organisation of firms.

This module will provide an introduction to international monetary issues, including the determination of exchange rates and international spill-over effects. 

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

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:

Foundations

• 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

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
• difference-in-differences
• regression discontinuity