Economics (2 year course)

Core Modules

Year 1

• Microeconomics

  The module introduces analytical tools for studying the behaviour of individuals and firms in a variety of economic settings. Topics include consumer and firm optimisation problems, strategic interactions between firms in different non-competitive environments, choice under uncertainty, intertemporal decisions and general equilibrium theory. For each topic, real world applications are used to show how models are used to examine complex issues, to make predictions and policy prescriptions. The features of economies that give rise to desirable market outcomes under different welfare criteria are studied in conjunction with situations that result in market failures.

• Macroeconomics

  This module covers macroeconomics at the intermediate level and introduces an integrated framework for thinking about the determinants of aggregate variables like unemployment, investment, consumption, interest rates, inflation, exchange rates and the balance of trade (net exports). The Autumn Term covers the core theory, developing an integrated model of goods, financial and labour markets. We focus on the three central variables of macroeconomics - output, unemployment, and inflation - and examine what factors may cause changes in these variables. The course introduces a unified framework for understanding the role of macroeconomic policy. In the Spring Term, we examine the dynamic elements of the economy, focusing on growth, consumption and investment. We will first study the process of economic growth over the long-run with a special emphasis on the recent economic catch-up of China and East Asia.

• Econometrics 1

  The aim of this module is to provide you with a solid understanding of the essentials of empirical research techniques (i.e. econometrics) used by applied economists. The module will cover core econometric topics that are needed by all wishing to undertake econometric analysis, with a particular focus on topics in both time series and cross section econometrics that can be used by students of industrial, business and finance.

• Econometrics 2

  The aim of this module is to extend your knowledge of the essentials of empirical research techniques (i.e. econometrics) used by applied economists. The module will build on the topics covered in Econometrics 1.

Year 2

• Mathematical Methods

  In this module you will develop an understanding of basic mathematical methods that are used in the study of Economics and Finance, including basic matrix analysis, topology, statistics, and probability theory. You will look at differentiation and integration of standard functions, and basic manipulations of vectors and matrices. You will also examine various optimisation problems and theorems leading to certain basic results in calculus.

• Microeconomics

  This module will develop your understanding of the basics of modern microeconomic analysis. You will become familiar with the tools that economists use to analyse problems of resource allocation in market settings, beginning with a formal analysis of the optimising behaviour of consumers and producers. You will be introduced to markets and the notion of competitive equilibrium, in both partial and general equilibrium settings. You will then look at how individual market participants can affect prices, analysing the problem of a monopolist. Finally, you will consider static game theory to analyse markets where a small number of firms compete with each other (oligopolies).

• Macroeconomics
  This module will provide you with an introduction to modern intertemporal macroeconomics. You will learn about the tools used for dynamic economic analysis and apply them to topics such as economic fluctuations, unemployment, long-run growth, consumption decisions by households and investment decisions by firms. You will develop an understanding of dynamic macroeconomic models of economic behaviour, the main theories of economic fluctuations, the modern theory of unemployment, the principal determinants of consumption and investment decisions, and look at the process of economic growth.
• Econometrics
  This module will provide you with an overview of the principal methods of econometric analysis. Emphasis is placed on applied econometrics and will ensure that you are comfortable when reading and evaluating the econometric work of others in order to produce good quality applied econometric work of your own. You will be introduced to the principles and assumptions underlying ordinary least squares, the consequences of any departure from these assumptions, and methods used for testing. The second half of the module will focus on time-series analysis.
• Dissertation in Economics
  You will attend a set of preparatory classes to equip you with the necessary skills required for research, including a hands-on approach to using statistical packages and reading peer-reviewed articles. You will be expected to use either econometric or statistical techniques, and apply your knowledge and skills from the other quantitative methods and theory modules taken during your studies, to produce your own piece of research around 10,000 words in length.
• Academic Integrity

  This module will describe the key principles of academic integrity, focusing on university assignments. Plagiarism, collusion and commissioning will be described as activities that undermine academic integrity, and the possible consequences of engaging in such activities will be described. Activities, with feedback, will provide you with opportunities to reflect and develop your understanding of academic integrity principles.

   

• Employability

  The aim of the course is to give guidance to students who want to work in the financial industry. The level of this course is mostly for third year or MSc students, but it does not require pre-existing knowledge so first and second year students can follow this course. This course aims to bridge the gap between finance studies at university and what finance industry professional expect from graduates. The course explains precisely what existing finance jobs entail, what is required from the people working in those jobs, what the perspectives of these jobs are. This course will also prepare students for the professional interview of such a job.

Optional Modules

There are a number of optional course modules available during your degree studies. The following is a selection of optional course modules that are likely to be available. Please note that although the College will keep changes to a minimum, new modules may be offered or existing modules may be withdrawn, for example, in response to a change in staff. Applicants will be informed if any significant changes need to be made.

Year 1

• Labour Economics

  This module will analyse the economic issues of behaviour and outcomes in labour markets. It will focus on topics relating to labour supply and demand, wage formation and earnings inequalities, e.g.: Labour Demand; Labour Supply; Human Capital and Compensating Wage Differentials; Inequality in Earnings; Labour Mobility; Discrimination; Unemployment.

• Industrial Economics

  The module is designed to broaden the economist’s statistical toolkit beyond the standard regression analysis and introduces modern techniques in machine learning. Topics covered will include k-Nearest Neighbours, decision trees, Linear Regression, Logistic Regression, Neural Networks, comparing prediction algorithms and Model Selection, Ensemble Methods, Unsupervised Learning including Clustering and Density Estimation. Weekly lab sessions where weekly assignments are covered will complement the theoretical material presented in the lecture.

• Economics of Inequality

  In this module you will develop an understanding of economic inequality. You will look at the factors that determine wage differentials among workers from a theoretical and empirical point of view. You will consider why similar workers are paid differently and examine how labour mobility can improve the allocation of workers to firms, enhance aggregate productivity, and reduce inequality.

• Corporate Finance

  The module aims to introduce the student to what factors affect corporate financial decisions. Particular emphasis is given to the concepts of Net Present Value and Risk. The learning outcomes include: Understand what the goals of a firm are; Understand how investments are valued (Internal rate of returns) in order to help with good financial planning); Understand the concepts of risk, agency costs and how they feed into financial decision making; Understand the process of price formation in financial markets; Understand venture capital and different types of debt finance and debt valuation, including leverage.

• Topics in Development Economics

  In this module you will develop an understanding of both theoretical and empirical issues in Development Economics, such as the behaviour of credit and insurance markets in developing economies, the existence of poverty traps and the role of income, ethnicity, gender and caste in the development process.

Year 2

• Advanced Microeconomics

  This course covers static and dynamic games, games with incomplete information, Bayesian decision theory, and common knowledge.  Particular topics include the minimax theorem for zero-sum games, the equivalence of Nash and minimax equilibria for zero-sum games, extensive-form games, backward induction in extensive-form games, subgame perfection, the representation of incomplete information in games, how agents update when they receive information, infinitely-repeated games, folk theorems in infinitely-repeated games, and the effect of common knowledge on the willingness of agents to trade and bet, signalling, and Bayesian perfect equilibria.

• Advanced Topics in Macroeconomics

  In this module you will develop an understanding of some of the key topics in macroeconomics, notably the roles of technological change, monetary policy, and fiscal policy in macroeconomic fluctuations. You will look at models of economic growth, resource allocation, and technological change, evaluating empirical evidence of these, and you become familiar with techniques such as dynamic optimisation, log-linearisation and difference equations for general economic analysis.

• Applied Econometrics for Public Policy

  This course aims to give students broad advanced-level training in the economics of policy evaluation. It does so by providing students with the facility to apply economic models to evaluate actual policy interventions, and teaches them quantitative techniques and qualitative methods, and particularly their application to evaluate actual policy interventions in particular fields and countries. Students will learn to apply the following evaluation methods to public policy: i) randomised experiment, ii) natural experiments, iii) panel and fixed effects methods, iv) differences in differences methods, v) regression discontinuity designs, and vi) instrumental variables.

• Private Equity

  The aim of this module is to give a more in-depth look at corporate finance issues related to company evaluation and with the main user of those evaluations e.g. private equity and Venture Capitalist (VC). It also aims at giving a practical approach to key aspects of corporate valuation, for example, leverage. Finally, this module will detail the dynamic and the valuation specificity for the different stages of the company from the start up, to the IPO to the mature company doing merger and acquisition.

• Fixed Income Securities and Derivatives

  This module provides an overview of a very significant area of the contemporary financial world. The first part gives a coverage of the important elements of the default-free fixed income securities market, and the second part covers the derivatives market. The module focuses on the analytical tools used in portfolio management and risk management. For bond portfolios, these tools include yield curve construction, duration, convexity and formal term structure models. For derivatives, the emphasis will be on valuation, trading mechanisms and management of credit risk.

• Inequality, Development and Health

  The aim of this module is to provide an overview of the current research on health behaviour and outcomes in middle- and low-income countries, with special attention to the role of poverty and inequality in shaping those outcomes. The module will focus on drivers of health outcomes and the effectiveness of different interventions and public health programmes and how the environment shapes disease incidence (such as malaria, and other vector-borne diseases).

• Behavioural Health Economics

  The aim of this module is to provide an understanding on behavioural aspects of individual actions and outcomes related to health. It will offer recent insights in behavioural economics, at the intersection with psychology and health economics to explore addictions, lifestyle choices and their consequences on individual health. The module will also provide insights into why and how people decide to insure themselves against health shocks and the role of policy in shaping health behaviour, from taxes, outright bans (e.g. illegal drugs, smoking restrictions) and behavioural interventions (nudges) like framing, reference points and the role of behavioural biases.

• Long-Term Trends in Health and Health Policy

  The aim of this module is to provide an understanding in the measurement and patterns of long-term trends in health outcomes, including the demographic transition and the evolution of life expectancy, anthropometrics and other indicators that measure quality of life. The module will discuss historical aspects of health, including pandemics in history, the Industrial Revolution and the birth of Public Health, including vaccine programmes and the eradication of diseases and the nationalisation of healthcare.