ECON1009: Introduction to Economic Thinking
Course Description: This course introduces students in the first year to thinking like
economists. Students will be encouraged to read and write critically, and to give
presentations in front of their peers. This means going beyond the mathematical tools
developed in the other first year courses and developing a deeper understanding of the
basic principles of economics and their applications. In particular, students will learn how
to use important concepts like opportunity costs or compensating differentials in the
context of everyday events rather than just in a numerical problem-solving setting.
Students will gain experience in writing like an economist, presenting their work, and
working in teams to analyse real world problems.
ECON 1002: APPLIED ECONOMICS
COURSE DESCRIPTION
This course is about the analysis of data within economics, and the interpretation of
empirical results. More specifically the course aims are to:
• Provide an introduction to the application of economic theory to data
• develop an understanding of simple and commonly used econometric techniques
• Impart an ability to understand and interpret results both statistically and economically
• Introduce You to widely used software in applied economics (STATA)
OBJECTIVES OF THE COURSE
At the end of the course, students should be able to:
• Design simple econometric strategies to test relationships suggested by economic
theory
• Understand the statistical theory behind linear regression techniques
• Test these relationships and estimate their empirical magnitude in the data using
simple econometric packages
• Understand and interpret these results and their relevance to the related economic
Problem
ECON1004: INTRODUCTION TO MATHEMATICS FOR ECONOMICS ECON1010: MATHEMATICS FOR ECONOMICS (First term)
Aims To provide students with the mathematics to take them from GCE A level standard to
that required for the remainder of the economics degree.
Objectives At the end of the course, students should:
(i) understand elementary matrix algebra in a form suitable for application to
econometrics and optimisation;
(ii) understand calculus of several variables, including optimisation of functions of
several variables, and be able to apply their knowledge to simple economic problems;
(iii) understand simple first order differential and difference equations and be able to
apply their knowledge to simple problems in economic dynamics.
Outline Syllabus Vectors, linear dependence and independence. Matrix algebra. Systems of linear
equations, Gaussian elimination, reduction to echelon form. Inverse of a matrix.
Determinants. Quadratic forms.
Calculus of several variables: differentiation, constrained optimisation, applications to
consumer theory and production theory. First-order differential and difference equations.
ECON1003: Statistical Methods in Economics
Overview
This course will provide an introduction to probability and statistics for first year
economics students, and is compulsory for first year single-honors Economics (L100
& L101), ECON/GEOG (LL17), ECON/PHIL (VL51), and ESPS Economics
Specialist students only. The course will equip students with a fundamental basis of
understanding in probability and statistics essential for studying economics.
ECON1008: INTRODUCTION TO MATHEMATICS FOR ECONOMICS II ECON1010: MATHEMATICS FOR ECONOMICS (Second term)
Aims To consolidate the mathematics background needed for the rest of the degree
programme at a level appropriate for economics specialists.
Objectives At the end of the course, students should:
(i) understand constrained optimisation including interpretation of Lagrange multipliers,
envelope theorems and inequality constraints and be able to apply their knowledge to
economic models;
(ii) understand harder first-order and linear second-order differential and difference
equations and be able to apply their knowledge to economic models;
(iii) understand linear and non-linear systems of differential and difference equations and
be able to apply their knowledge to economic models.
Outline Syllabus Constrained optimisation: meaning of Lagrange multipliers, envelope theorems,
inequality constraints and the Kuhn-Tucker theorem.
Mean value theorem, l’Hôpital’s rule, Taylor’s theorem. The circular functions. Complex
numbers.
Harder first-order differential equations: solution by integrating factor, Bernoulli’s
equation. Linear second-order differential and difference equations.
Eigenvalues and eigenvectors. Linear systems of difference and differential equations,
stability of stationary solutions. Nonlinear systems of differential equations: linearisation,
stability of stationary solutions.
Econ1005 world economy
Overview The modern world is truly interconnected and most social and economic challenges do
not stay within national boundaries but are global. This course looks at five aspects of
the globalised world we live in:
International trade flows, international financial flows, cross-border migration flows,
global environmental flows and international health challenges. Policy making becomes
increasingly challenging within such interconnected environments and it has been
argued that the institutional structures in place are not anymore able to cope with these
21st century challenges.
The above phenomena are discussed by different disciplines within and outside the
social sciences.
The course discusses the topics initially from an economist’s viewpoint but we regularly
acknowledge their interdisciplinary dimensions. We also reflect on institutional structures
for policy making and issues in global governance.
Each of the five lecture topics is approached in a similar way. We focus on:
• Comparative empirical regularities to describe the global economy in the 21st century.
• Economic history to understand how the status quo has emerged.
• Basic economic ideas and tools, which are useful to analyse the questions of interest.
• The current policy debate and issues in global governance and policy coordination.
• Appropriate institutional settings to deal with such 21st century challenges.
The course puts a particular emphasis on the use of different types of reading materials.
We will use easy-to-read academic articles and book chapters as well as policy reports
and newspaper articles. In addition you will be asked to read a recent ‘popular
economics book’. This wil communicate and critically discuss the main line of argument
from the book.
ECON1006 History of Economic Thought
Aims:
This module provides students with an opportunity to participate in the revival of interest
in the history of economic thought which is now occurring in response to the current
financial and economic crisis.
The module will accordingly relate the study of economic ideas of the past to
current debates and discussions on the unfolding events of the present.
The module will show how reassessing the ideas of the past provides a unique
opportunity to think ‘outside the box’ and address economic issues which had
become unfamiliar within economic theory as it has existed in recent times.
The module will show how the history of economic thought not only provides an
introduction to the study of economics, but is also a fundamental aspect of the
formulation of economic ideas which can adequately address the issues of the
present.
The module will acquaint students with carefully chosen selections from some
classic texts of economic thought which they will be able to cite throughout their
student career and beyond.
The module will have strong career relevance, in providing students with the
ability to engage in informed discussion with specialists and non-specialists alike
on issues currently receiving widespread attention in the media and public
debate generally.
Objectives:
On completing this module, students will have gained:
an understanding of the context of the original formulation of some fundamental
analytical methods and theoretical concepts in use by economists today;
an understanding of the changing context of the application of these methods
and concepts in subsequent periods up to the present;
an understanding of the applicability or otherwise of these methods and ideas in
relation to the specific characteristics of the world economy today;
an acquaintance with some classic texts of economic thought and an ability to
cite them in their application of economic analysis;
an ability to think critically about the limits of economic analysis in a broader
socio-economic context;
an awareness of the relation of economics to other social science disciplines;
an ability to bring their awareness of the history of economic ideas to bear on
their assessment of wider economic discussions and debates on economic
affairs of topical interest today;
an ability to engage in informed discussion with specialists and non-specialists
alike on issues currently receiving widespread attention in the media and public
debate generally, which will be particularly relevant in job interviews, etc.
ECON2001 : Intermediate Microeconomics
Aims: This course is designed to provide students with a rigorous grounding in the core
concepts and methods of Microeconomics. At the end of the course the student should:
(a) Understand microeconomic theory at a level appropriate for an economics graduate.
(b) Understand how to analyse microeconomic models using appropriate techniques.
(c) Be able to address economic phenomena using these models and techniques.
Course Outline and Syllabus
Term 1:
1) Games in Strategic and Extensive Form: Cowell Chapter 10
a) Strategic forms, dominance, Nash equilibrium.
b) Extensive forms, backwards induction and subgame perfection.
2) Oligopoly and Monopoly: Cowell Chapters 10, 3
a) Static models of oligopoly: Cournot, Bertrand and differentiated product competition;
auctions.
b) Dynamic models of oligopoly: Stackelberg, commitment and collusion
c) Monopoly
3) The Perfectly Competitive Firm: Cowell Chapters 2 and 3
a) Production functions, Cost Functions, Input Demands.
b) Scale and Homogeneity, Duality, LR and SR costs
4)
Adverse Selection: Signalling and Hidden Information:
Cowell Chapter 11.
a) Lemons and signals in insurance models.
b) Screening and product provision.
c) Non-Linear Pricing
5)
Incentives and Moral Hazard: Cowell Chapter 11 and 12
a) Principals and Agents
b) Incentive compatibility and individual rationality
c) Providing incentives for workers.
6)
Designing Economic Systems:
Cowell Chapter 12
Term 2:
6) Consumer Demand: Cowell Chapter 4
a) Budget constraints
b) Revealed preference
c) Preferences and utility, duality
d) Consumer surplus and price indices
7) Demand with endowments: Cowell Chapter 5
a) Labour supply
b) Intertemporal choice
8) Uncertainty: Cowell Chapter 8
9) General equilibrium: Cowell Chapter 6 and 7
a) Exchange equilibrium
b) Equilibrium with production
c) Welfare theorems
ECON 2007: Quantitative Economics and EconometricsTerm 1, Fall 2015
Aim:
To provide students with a thorough understanding of core techniques of quantitative
economics and econometrics and their application to test economic theories and
measure magnitudes relevant for economic policy. The course serves as a foundation
for subsequent study of quantitative topics, and as one of the key elements in the
professional training of an economist. The main focus will be on econometric methods
that are useful to analyze individual level cross sectional data using OLS regression
techniques.
Objectives:
At the end of the module, students should:
Understand the main techniques (most importantly, OLS regression) of
quantitative economics and econometrics, including their strengths and
limitations
Understand how these techniques can be applied to test economic theories and
measure economic magnitudes
Have some practical experience of the application of econometric methods using
Stata
ECON3007 ECONOMIC POLICY ANALYSIS
Course Aims and Objectives
Aim:
Objectives:
The course aims to provide
At the end of the course, students should:
final year students with the
opportunity to explore the
Have an understanding of the application of
economic theory and empirical methods to issues in
way in which economic
current economic policy analysis.
theory and evidence can be
Have had the experience of analysing a complex and
used to analyse topical policy
unfamiliar issue, drawing on their knowledge of
issues. The course should be
economic theory and methods, and on a range of
of particular value to
relevant research and policy papers, without being
students who intend to work
able to rely on comprehensive textbook treatments.
as professional economists
Be able to write cogent and well-argued analyses of
in government departments
a number of aspects of the issues they have studied,
or other agencies, where
making appropriate use of both theory and empirical
they will be expected to
evidence.
provide economic analysis
Be able to cooperate with other class members to
and advice on specific issues
produce a coherent team-presentation.
of policy, including new and
unfamiliar issues about
which textbooks say very
little.
Course Content
The course aims to allow final year students to share in the policy-oriented research
activity of members of the department. Many members of staff are involved in policy
research, and in advice to government departments (in the UK and abroad), the
European Commission, the Low Pay Commission, the World Bank, etc. This policy-
related research activity is reflected in the sessions offered. Equally, students taking the
course are expected to come to terms with concepts, theory and empirical work at the
level at which the policy discussion between academic economists and government
policy-makers is typically conducted.
The seven economic policy issues that the course will address in 2014-2015 are:
1.
Pensions and Public Policy – [redacted]
2.
Migration – [redacted]
3.
Unemployment Insurance – [redacted]
4.
Empirical Evidence and Tax Policy Design – [redacted]
5.
Performance Pay in Education – [redacted]
6.
TBA 7.
Minimum Wages – [redacted]
ECON 3002: Microeconometrics
Aims and Objectives
The main aim of this course is to develop a knowledge on the econometric methods that
are useful to analyze individual level data (microdata).
The use of microdata has become common in the empirical work in economics since
microdata analyzed by appropriate econometric tools can empirically answer numerous
economic questions. With a particular focus on the cross-sectional and panel microdata,
this course covers various extensions of regression models to nonlinear model and
basic nonparametric econometric methods that are useful for policy evaluation. Topics to
be covered are selected from the perspective of (a) Individual’s choice and (b)
heterogeneities in policy impact. Related to these keywords, the lectures are designed
for answering the following questions,
(a) What are the useful econometric techniques when the dependent variable is discrete
or observed choice?
(b) What is the econometric framework to measure the policy impact when the policy
impact is
heterogeneous over the individuals?
ECON2004 Part 1/ ECON2005 / ECON2005A: Macroeconomic theory and policy
2015/16
This term’s topic is closed-economy macroeconomics. The course is structured around a
number of questions:
what causes business cycles?
what should policy do to smooth the business cycle, and what can it do?
what determines the natural rate of unemployment, and what can policy do to
change it?
The course will equip students with the theoretical models they need to understand
contemporary debates about economic policy.
ECON3003 Econometrics for Macro and Finance
Course Description
The aim is to introduce students to econometric techniques used in the analysis of
macroeconomic and financial data. The first part of the course will focus on
macroeconomic applications and use dynamic linear regression techniques to make
causal inference and do forecasting of macroeconomic variables. The second part will
consider financial applications and introduce some basic asset pricing models and
volatility models used in finance; the econometric methods required in order to take
these models to data are covered.
While the course will focus on applications, econometric models and techniques will be
used throughout. A good understanding of statistics and econometrics is therefore
required in order to do well in this course.
By the end of the course, students will have learned how to apply standard econo-
metric techniques to answer quantitative questions in macroeconomics and finance.
Students will also learn how to conduct empirical analysis using the econometric
software package STATA.
ECON2004: Macroeconomic Theory and Policy:
The Open Economy and Crises
ECON2004 Term 2
Course Outline Lecture on Thursday
Topic
1
Introduction
Globalization in trade and capital
markets
economy
Model-building: financial markets,
exchange rates and the UIP condition
2
Supply-side, demand-side and real
exchange rates Model-building:
The medium-run model in the open
economy (AD-ERU model)
3
Inflation-targeting in the open
economy Model-building:
Extending the inflation-targeting model
to include the foreign exchange market
(3-equation model)
4
Inflation-targeting, exchange rate
overshooting & volatility Model-building:
Using the 3-equation model
5
The real exchange rate, external
balance and the demand side Model-building:
Competitiveness, multipliers, Marshall-
Lerner condition, terms of trade
ECON3004: International Trade
Course Description: The aim of this module is to introduce the tools used by economists to
analyse patterns of international trade and to study international trade policy. We will
consider the main models of international trade as well as empirical tests of these models.
Finally we will look at how policy instruments like tariffs, quotas and subsidies affect a
country’s welfare.
In this module, we will rely on formal economic modelling to help us understand past and
current events in the world economy. Therefore, it is imperative that you are not only familiar
with the microeconomics tools and models from Econ1001 and Econ 2001, but that you also
feel comfortable using and manipulating them. If you are taking this module, I will assume
this to be the case. If you do not feel absolutely comfortable with these tools, I strongly urge
you to review the Econ1001 and Econ2001 material early on in the term.
Econ 3012: Economics of Competition Policy
Course objective and learning outcomes
The aim of the course is to provide students with the opportunity to develop an expertise in a
selection of core topics in Competition Economics and to apply what they have learnt to the
analysis of competition in real world markets.
When
students
have
completed
the
course
they
should
be
able
to:
1.
Explain,
in
writing
and
orally,
economic
ideas
and
methods
associated
with
the
course
topics
to
each.
2.
Solve
problems
relating
to
the
course
topics,
identifying
the
appropriate
tools/methodologies
to
use,
explaining
how
the
tools
work
and
evaluating
the
relevance
or
meaning
of
solutions.
3.
Apply
the
ideas
and
tools
covered
in
the
course
to
(at
least)
one
real
world
market
with
a
view
to
critically
assessing
the
analysis
undertaken
by
competition
authorities.
4.
Critically
assess
and
challenge
views
of
others
in
the
literature
and
in
practical
case
studies,
building
on
material
covered
in
the
course.
5.
Work
effectively
with
their
peers
to
develop
evidenced--‐based
and
well--‐
written
arguments
and
outputs.
When
marking
homework
and
exam
answers
we
will
be
looking
for
evidence
that
students
have
reached
outcomes
1
to
4.
The
marking
of
the
group
case
study
project
requires
evidence
of
all
5
learning
outcomes
being
met.
Experimental Economics (ECON3020) --‐
Spring 2015--‐
Syllabus
Course Description:
This course is an introduction to the use of laboratory methods in economics. Much of the
course will be a review of some of the more exciting things economists have discovered
about markets, human rationality and human sociality through experimental inquiry.
However, the course will also cover important methodological tools used in designing,
running and making use of experimental data. Throughout the course you will participate in
sample classroom experiments.
ECON 3013: Industrial Economics II, Dynamic Industrial Organization
Course Information
This course covers central topics of Industrial Organisation at an advanced undergraduate
level. It assumes familiarity with calculus, intermediate microeconomics and game theory.
For more details check the list of topics that follows.
Urban Economics: ECON3021
Course Outline
This course aims to demonstrate and explain how economists use economic theory to study
cities and their development. We will study the incorporation of space into economic models
and how these models are used to analyse cities.
Methodology: the course will focus on setting up a model to answer a particular question,
solving the model, interpreting the model in light of the question and gaining an
understanding of how to critically assess such models.
(i). Location choice, spacial equilibrium in a simple city and extensions.
(a) Residential location choice and spatial equilibrium, properties, comparative statics.
(b) Residential location choice and spatial equilibrium with different types of consumers.
(c) Business location choice and spatial equilibrium.
(ii). Housing Markets.
(a) Rent or Buy, present value.
(b) Tenure choice, housing investment, taxes.
(c) Two period consumer maximization in housing context.
(iii). Diversity in cities, public good provision and optimal jurisdictions.
(a) Condorcet winner, single-peaked preferences, median voter theorem.
(b) Voting over type and level of public goods in diverse cities.
(c) Optimal city or city district size (jurisdiction) with diverse populations.
(iv). Crime and social interactions.
(a) What are social interactions, features of social interactions, modeling social interactions.
(b) Social interactions in crime and variance of crime across cities.
ECON3014 - Game Theory – Syllabus
Course Description:
This course introduces models of strategic situations that involve agents with opposed
interests. The aim of this course is to provide students with an intellectual framework to
analyse situations in which the behaviour of agents is driven by strategic considerations and,
with a set of analytical tools, to interpret a wide range of phenomena in the social sciences.
Most of the course focuses on non-cooperative game theory. The major topics covered are
strategic form games, extensive form games, Bayesian games, mechanism design, and
repeated games. The last lecture provides an overview of cooperative models and matching
markets.
ETHICS IN APPLIED ECONOMICS (ECON 3022)
GENERAL INFO AND COURSE OUTLINE
JAN 2016
In principle, both macro-economic policy and specific project selection rely on welfare economics and
its application in some form of cost-benefit analysis. This involves a mixture of positive assumptions
about how economies operate and value judgements. The course will begin by identifying the main
ethical assumptions implicit in the theory of welfare economics that underlies most applied economics
policy issues. The relationship between these assumptions and certain major strands of ethical theory
will then be briefly discussed. The role of ethical assumptions and the relevance of the different ethical
theories to some selected topics in applied welfare economics will then be analysed, such as the
transition from individual preferences to aggregate social welfare, the boundaries of the society in whose
welfare we are interested, and the ubiquitous problems of distributional equity.
The course will cover the nine topics listed below, each topic covered in roughly one two-hour lecture.
In addition all students will be required to attend four classes. Most of the course will be given by
[redacted], a philosopher who also teaches GO 52. Some contributions will be made by [redacted], an
Emeritus Fellow of Balliol College, Oxford, who was the Professor of Political Economy at UCL from
1969-1975.
ECON 3015: The Economics of Growth
Overview
This course deals with a theoretical and empirical examination of income differences
between
countries and their growth processes. The first part of the course will examine the degree to
which
variation in income and growth rates among countries can be explained by variations in
factor accumulation (physical capital, population growth, and human capital). The second
part of the course
will demonstrate the importance of variations in productivity in explaining cross-country
differences
in income and growth. We will explore the reasons for these differences in factor
accumulation and productivity among countries. (
Prerequisites: principles of microeconomics
and macroeconomics)
Economics of Financial Markets (ECON3023) Course objectives
The aim of the course is to provide students with a thorough understanding of core
concepts and methods of financial economics. In particular, the course will cover
important topics such as the role of markets and institutions as providers of liquidity, the
reasons for asset price volatility, financial fragility, financial contagion.
Note that this is a course in the economics of financial markets and NOT an MBA type of
course. We will study financial markets using the methods of economic theory. Some
lectures may be more descriptive, but for most of the course we will use economic
models to understand the functioning of markets.
ECON3016: Economics of Information
Aims:
One often encounters situations in which two agents are involved in a mutual agreement.
Invariably, one economic agent has more information about a characteristic that is relevant
to the agreement, than the other. In this course, we will study how agents deal with this
information asymmetry by designing incentives and embedding them in contracts. We will
also study the effects of information asymmetry on the prevailing market equilibrium.
Applications of the theory include insurance, labour economics, industrial economics,
development, and environmental economics.
Econ 3028 – The economics of money and banking
Course objective and learning outcomes
The aim of this course is to provide students with the analytical skills needed to assess
decisions and outcomes in the banking sector. By the end of the course you will be able to
use your economic knowledge to independently critique problems and policy solutions in the
banking sector, understanding the implications for the wider economy.
The desired learning outcomes are that on completion of the course you are able to:
1. Explain, using economic tools and real world examples, why retail banking is central to the
economy and what factors affect decision-making of retail banks.
2. Critically analyse the role of government in the banking sector and evaluate different
options for banking regulation.
3. Independently investigate and critically comment on a range of current debates relating to
the banking sector.
4. Write clear and well-structured economic essays for a non-expert audience and
critically assess the writing of others.
5. Confidently discuss and debate economic ideas with your peers. When marking
homework and exam answers we will be looking for evidence that students have reached
outcomes 1 to 4 in particular. Outcome 5 is explored through discussions in
lectures and tutorials and a debate in tutorials but not formally assessed.
Econ3019 Course Syllabus.
Aims:
To provide students with an in depth understanding of some of the issues which are key to the
understanding of public policy in developing countries, with a particular attention to health
related policies. To this end, the course is structure in four large blocks: (1) Evaluation of
Public Policies, (2) Public Sector Workers, (3) State capacity and Taxation, and (4) Health
Policies.
Style:
The course will combine the use of economic models with empirical methods, so a good
command of Intermediate Microeconomics (ECON2001) and Econometrics (ECON2007) will
be required. The philosophy of the course is to explore a few issues in depth rather than giving
a broad view of many issues. The material will be based on academic articles, and the student
will be required to do substantial amount of reading.
Objectives:
By the end of the course, students should:
have gained major insights on the role of public policy in promoting development
be familiar with the methods used to evaluate public policy interventions in developing
countries, and critically assess the robustness of the methodologies and findings.
understand the economic issues regarding policy implementation in a developing country
be familiar with the economics of improving health in developing countries
Behavioural ECONOMICS (ECON3030)
Course Description
This course covers economic analyses of issues overlapping Psychology and
Economics. The aims of the module are to give students an understanding of main
hypotheses in behavioural economics and empirical evidence in their support.
Evidence will be provided from both field and laboratory environments.
The presentation of topics in the module is a combination of theory and empirical
evidence.
Students are expected to have a good background on microeconomics and econometrics.
Economics of Migration and Job Search
Aims: This subject provides students an introduction to recent developments in the
migration and job search literature. Students will learn how to formulate and solve dynamic
models, and apply these models to analyse a range of topics including migration,
employment transitions and wage dispersion across workers. Throughout the course,
analysis will be linked to the current debate on migration and other labour market policies.
Objectives: This is an optional module for Econ 3rd year students. Upon completing the
course, students should:
Have a knowledge of the basic facts about migration and the structure of labour markets.
Apply techniques to solve problems relating to various settings of labour markets.
Be able to evaluate and assess empirical findings and policies relating to migration, job
turnover and individual’s wage profiles
Econ7005
ECONOMICS OF THE PUBLIC SECTOR
Aims (of the course)
To provide students with an understanding of the economics of public goods, public
expenditure and public services, and with the ability to analyse and understand key issues in
this field using standard tools of theoretical and empirical economic analysis, corresponding
to the level taught in core second-year economics courses.
Objectives (for students)
At the end of the course, students should:
have a knowledge of the dimensions and functions of the public sector in at least one
country, and an appreciation of the normative arguments which might define the
economic borders of the state
have a clear understanding of the economic theory of public goods, and of the
problems which arise in making efficient decisions about public goods provision;
understand the economic issues concerning various aspects of the role of the public
sector in the provision of education and other public services.
SkilECON7012 – Economics of Education
Course Content
This course discusses different aspects of education policy through the lenses of economics.
We will examine rigorous economic arguments and careful empirical evidence for different
types of human capital policies.
ECON6002: An Introduction to Applied Economic Analysis
Objective and Overview
This is a course for non-economists. It explores topics of general interests through the lens
of an economist. It should also be viewed as an introduction to the way economists think and
analyse problems. Topics range from comparative advantage in international trade and
exchange rate determination in international finance to income disparities between rich and
poor countries, health and education, and the environment. The main objective is to
familiarize non-economists with simple ideas around the notion of scarcity and opportunity
cost, and to help students understand how economists view trade in an increasingly
globalized world economy, financial crises, economic growth in poor and emerging market
economies, income distribution, impact evaluations on investments in health and education,
and externalities.
Econ 7006 – Economics of Regulation
Course objective and learning outcomes
The aim of the course is to provide the analytical skills needed to assess the case for
economic regulation and to critically evaluate alternative regulatory frameworks.
The desired learning outcomes are that on completion of the course students are able to:
1. Explain, using economic tools and real world examples, why some industries are
regulated and not others.
2. Critically evaluate the case for privatising a firm or industry, taking account of
economic literature and real world examples.
3. Describe and evaluate in a balanced manner different forms of economic regulation,
taking account of regulatory objectives and available information.
4. Investigate as part of a small team the rationale for and evolution of regulation in
one utility sector and present research orally in tutorial.
5. Write clear and well-structured economic essays for a non-expert audience and
critically assess the writing of others.
When marking homework and exam answers we will be looking for evidence that students
have reached these outcomes as well as ensuring the quality is consistent with the
Economics Department grade descriptors.
ECON6003. Money and Banking. Module outline.
This module aims to enable students to critically analyze current debates on banking and
monetary issues, providing a basic understanding of:
The principles of bank management and their changing character in recent decades.
The role of banking in the financial system and in the wider economy.
Banking regulation and government intervention in the banking sector.
Theories and debates on the role and effectiveness of monetary policy.
Monetary aggregates, exchange rates and inflation as targets of monetary policy.
Historical experience of different monetary policies and their lessons for the present.
Econ7007 Environmental Economics
Overview
This course takes an interdisciplinary approach to discuss questions about natural
resources, environmental valuation and climate change. We will apply standard economic
theory to
discuss current questions related to the environment but also focus on important regularities
from
environmental and natural science. We believe that this interdisciplinary approach is needed
to
adequately understand and analyse the current policy debates. In this course, you will also
get hands-on
experience in designing and working with computer models using the computer software
Mathematica.
ECON 7001 The Economics of Labour
Aims:
1. To provide a survey of theoretical and empirical aspects of modern labour
economics.
2. To provide applications, in the context of labour markets, of analytical concepts
and empirical techniques taught in the core courses of the BSc Economics degree
(and joint degrees).
Objectives:
After completing the course, students should be able to:
1. Describe the main characteristics of, and recent developments in, labour markets
of OECD-type economies;
2. Apply basic optimisation techniques to solve stylised problems relating to labour
markets;
3. Critically evaluate empirical findings of applied research in areas such as labour
supply, employers’ adjustments to changing demand, returns to education,
unemployment, etc.
Course Outline
What follows is an outline of the main areas to be covered. It will not be possible to cover
everything in equal depth and some topics may have to be omitted entirely. At the end of the
course, to assist your revision, I will indicate which, if any, sections will definitely
not appear
in this year’s examination.
Econ7008 the economics of taxation
Overview Throughout
history
governments
have
engaged
in
significant
expenditures
and
a
main
way
of
meeting
such
expenditures
is
through
taxation.
This
course
provides
students
with
a
general
understanding
about
the
economics
of
government
taxation.
We
discuss
the
main
empirical
regularities
about
government
taxation,
discuss
some
influential
theoretical
advances
in
the
field
and
evaluate
current
and
past
tax
policies
around
the
world.
In
our
analysis
we
focus
on
the
behavioural
responses
to
a
specific
tax
design
(for
example
how
does
labour
market
participation
change
in
response
to
specific
tax
policies),
economic
efficiency,
and
the
redistributive
impact
of
tax
policies.
With
these
factors
in
mind
we
analyse
how
tax
policies
and
tax
systems
could
be
improved.
Topics
will
include
the
taxation
of
income
and
commodities,
corrective
taxation
to
improve
social
efficiency,
redistributive
taxation
(including
negative
taxation)
as
well
as
taxation
of
capital
and
inheritance.
The
topics
we
discuss
in
this
course
are
widely
debated
in
public
and
we
regularly
refer
to
this
debate.
A
particular
aim
of
the
course
is
to
link
academic
research
with
the
informed
public
debate.
In
an
e--‐learning
group
project
(WIKI)
we
will
practice
to
make
complex
economic
reasoning
accessible
to
a
wider
audience.
ECON7002 for 2015/16
Lecture contents:
1. Fundamental Asset Pricing Equation: simple consumption-based model
Consumption-savings decision, intertemporal marginal rate of substitution and
stochastic discount factor, role of time and risk
2. Consumption choice under uncertainty
Preferences, expected utility, risk aversion, risk premia and risk sharing
3. Fundamental Asset Pricing Equation: equilibrium approach
Arrow-Debreu equilibrium, state-prices, contingent claims, market completeness,
aggregate vs. idiosyncratic risk
4. Fundamental Asset Pricing Equation: no-arbitrage
Law of One Price, no arbitrage and existence stochastic discount factors, role of
complete vs. incomplete markets
5. Fundamental Asset Pricing Equation: bringing it all together
Equivalence of SDF, state-prices, risk-neutral probabilities, application to termstructure
of interest rates
6. Mean-Variance Approach and Beta Representation
From SDF to mean-variance efficient frontier, role of diversification, portfolio
separation theorem, beta-representation
7. Factor Pricing Models and the Capital Asset Pricing and
Factor models, beta-representation, two-step estimation, derivation of CAPM and
discussion of limitations, applications and generalizations CCAPM, ICAPM, APT
8. Derivatives
No-arbitrage/risk-neutral pricing, replication of forwards, options, put-call parity,
binomial trees and Black-Scholes, role of time and volatility
9. Options
Generating different payoff profiles, leverage, risk management, completing the
market, value of the firm, real options
10. Review and overview
Different approaches (SDF, beta-factor models, risk-neutral) for different asset classes
(bonds, equities, derivatives), generality and limitations, adding frictions ignored
ECON7010: Economics of Development
Objective and Overview
This course will address exceedingly important questions in the field of development
economics:
Why are some countries so rich in comparison with the vast majority that are so poor? What
factors determine economic underdevelopment and poverty? Which of these are within the
control of policy makers and aid agencies and which are not? What is the role of income
generation, health, and education in the process of economic development? Can the
relaxation of credit and savings constraints in microfinance help to alleviate poverty and
empower women? In what way can other anti-poverty campaigns complement efforts with
regards to ongoing attempts to reduce poverty via addressing human capital accumulation
directly? What is the role of culture and institutions? Is foreign aid effective? While
addressing these and other relevant questions to economic development, we will emphasize
the most popular and latest views, debates and policy implications. We will study the latest
empirical discoveries from field studies, and potential replication in other contexts where
poverty and inequality is prevalent and acute. The course delivers a review of influential
contributions. An effort will be made to link theory and rigorous empirical evidence.
Traditional views on economic growth and development will be presented.
Recent contributions on the role of health & education in economic development will be
studied.
A consistent effort will be made throughout the entire course to establish a connection
between stylized facts, theory, and empirical analyses.
ECON7004: Industrial Relations
Course Description: This is a course about the economics of labour relations, a topic which
has recently re-emerged as a topic of major interest for labour economists. The first part of
the course deals with the key human resources issues of recruitment, retention and
motivation. Topics covered include employee selection, design of optimal piece rates,
advantages and disadvantages of seniority-based pay, tournaments and promotions, and
incentives in team production. In this part of the course we assume that employers are
represented individually in the employment relations. In second part of the course we look at
what happens when unions enter the picture. We analyse how wages and employment are
set according to various union models and then use our theoretical understanding of unions
to critically discuss the empirical literature on the wage an employment effect of unions.