In your first year, we work to provide you with a solid grounding in introductory economic theory, mathematics and statistics, with emphasis on the relevance of such methods to the study of economic questions of cultural, political and social importance. This is achieved through a range of modules that explore current economic issues and perspectives as well as core modules in mathematical economics and econometrics.
Core modules
Introduction to Economics
The first semester provides an introduction to microeconomics, including behaviour of firms and households in situations of competitive and imperfectly competitive markets. The second semester provides an introduction to 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. A series of basic models used in modern macroeconomics are introduced, with a particular focus on dynamic general equilibrium modeling tools and techniques necessary to build theoretical models.
Mathematical Economics and Econometrics
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 required for data analysis in economics. We concentrate on statistical distribution theory and statistical inference before applying these concepts to the study of the linear regression model, whose extensions will be analysed in detail in subsequent econometrics modules.
The Politics of Economics and the Economics of Politicians
How does economics impact on politicians? And how do politicians impact on economics? You will study both contemporary economics and the political leaders who have put key economic theories into practice throughout history.
This module covers the following topics:
- The scope and method of economics
- Alexander Hamilton and the role of state in the economy
- Sir Robert Peel and Free Trade
- The Meiji Emperor and Industrialisation
- Franklin D Roosevelt and Demand Management
- Ludwig Erhard and Supply Side Economics
- Margaret Thatcher and Monetarism and Rolling Back the State
- Deng Xiaoping and Growth, Development and Convergence
At least two from the below or substitute up to two of these for language modules:
Current Economic Issues
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
Economic Integration I
This module introduces you to the economics of integration. The module analyses the consequences for countries seeking closer economic integration through successively more ambitious forms. This begins with a limited trade arrangement, followed by a common market, which also allows free movement of capital and migrant workers, and a Single Market.
The final part of the module examines monetary integration, beginning with exchange rate stabilisation and then considering Monetary Union. The module aims to combine principles of economic analysis with an assessment of the impact of such measures on the member economies.
Economic Integration II
This module introduces you to the economics of integration. It analyses the economic rationale for, and practice of, policy co-ordination and harmonisation both at the European and at a global level. An examination of the economic rationale for common EU policies is followed by an analysis of such examples as the common agricultural, trade and regional policies, and the operation of the European Budget.
At the global level, cooperation in trade, finance and development policies is reviewed in relation to the operation of institutions such as the World Trade Organization, the International Monetary Fund and the World Bank. The module aims to combine principles of economic analysis with an assessment of the impact of international policy coordination.
Growth and Development in Long-Run Historical Perspective
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.
The above is a sample of the typical modules 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. Modules (including methods of assessment) may change or be updated, or modules may be cancelled, over the duration of the course due to a number of reasons such as curriculum developments or staffing changes. Please refer to the
module catalogue for information on available modules. This content was last updated on Monday 09 August 2021.
Advancing your knowledge of micro and macroeconomics, your second-year core modules also cover econometrics. You will focus on econometric theory, establishing a thorough knowledge of the matrix algebra of the general linear regression model and the statistical properties of time series data, models and forecasts.
Core modules
Econometric Theory
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. The module then 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.
Macroeconomic Theory
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.
Microeconomic Theory
This module covers intermediate microeconomics including general equilibrium analysis; welfare economics; elementary game theory; and strategic behaviour of firms.
Optional modules
Some modules may also be taken from other schools. You must take at least two modules from:
Development Economics
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
Environmental and Resource Economics
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?
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 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.
Financial Economics
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.
Industrial Economics
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.
International Trade
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.
Labour 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.
Monetary Economics
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.
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.
Public Sector Economics
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
The above is a sample of the typical modules 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. Modules (including methods of assessment) may change or be updated, or modules may be cancelled, over the duration of the course due to a number of reasons such as curriculum developments or staffing changes. Please refer to the
module catalogue for information on available modules. This content was last updated on
With core modules and a dissertation accounting for half of your third year of study, you will cover both theoretical and applied aspects of econometrics at an advanced level.
The core aspects of your final year provide a detailed treatment of the models and techniques used in the analysis of time series and cross section data. Many of these were pioneered by 2003 Nobel Laureate and Nottingham alumnus, Sir Clive Granger.
You will also have the opportunity to select additional modules from a wide range of specialist options.
Core modules
Advanced Econometric Theory
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.
Advanced Industrial Economics
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.
Dissertation
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
Optional modules
At least two from:
Advanced Development Economics
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.
Advanced Experimental and Behavioural Economics
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.
Advanced Financial Economics
This 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
- bond markets and fixed income securities
- the term structure of interest rates
- the role of behavioural finance in explaining stock market puzzles
Advanced International Trade I
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
Advanced Labour Economics
This module covers an economic analysis of the labour market, with an emphasis on policy implications and institutional arrangements.
Advanced Macroeconomics
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 Microeconomics
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.
Advanced Monetary Economics
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.
Advanced Political Economy
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
And up to three from:
Advanced International Trade II
This module covers:
- models of intra-industry trade
- trade policy in oligopolistic industries
- multinational enterprises
- testing trade theories
- the WTO and "new issues"
Advanced Mathematical Economics
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.
Economic Policy Analysis I
This module will introduce you to economic policy analysis. It will focus on the role played by different institutional rules in shaping the behaviour of elected governments by providing incentives to elected governments.
Economic Policy Analysis II
This module will cover post-crisis monetary policy; controlling money markets with excess reserves; spill-overs of QE; effects of QE on asset and credit markets; low real equilibrium interest rates; uncertainty in monetary policy.
International Money and Macroeconomics
This module will provide an introduction to international monetary issues, including the determination of exchange rates and international spill-over effects.
Microeconometric Methods
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
The above is a sample of the typical modules 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. Modules (including methods of assessment) may change or be updated, or modules may be cancelled, over the duration of the course due to a number of reasons such as curriculum developments or staffing changes. Please refer to the
module catalogue for information on available modules. This content was last updated on