ÌÇÐÄÔ­´´

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.ÌýExample topics to be covered are:

Ìý

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

This module formalises the statistical methods required for data analysis in economics. The topics include statistical distribution theory and statistical inference, maximum likelihood and extension of the linear regression model to more than one explanatory variable.

This module introduces you to the economics of integration. You’ll analyse 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 examples such 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 will be reviewed in relation to the operation of institutions such as the World Trade Organisation, 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.

This module is a general introduction to the economic problems of developing countries. The module will cover such topics as:

Ìý

• 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 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.Ìý

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.

This module will look at:

Ìý

• market failure and the need for environmental policy - the Coase theorem
• instruments of environmental policy - efficiencyÌýadvantages 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 economic analysis of the theory and practice of organisation of firms and industries. It explores the nature of competition among firms and their behaviour in various markets, with the specific emphasis on imperfectly competitive markets. Tools for both empirical and theoretical approaches to the analysis of industries are covered.

Starting from a detailed analysis of market structures, the module goes on to discuss various aspects of firms' behaviour and their influence on market outcome. Among the behaviours covered in the module are price discrimination, vertical integration, advertising, research and development activities and entry and exit of firms. Government regulation of industries is also discussed.

This module 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.ÌýOn the policy side, it examines the effects of different government trade policy instruments and the role of international trade agreements.

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.Ìý

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 is concerned with the effect of political and institutional factors on economic variables as well as with the study of politics using the techniques of economics.

This module looks at:

Ìý

• 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

Adopts a broad focus on factors influencing growth and development, concentrating on core economic policy areas and the role of international organisations, and on historical and geographical factors affecting development. Topics covered include:ÌýEconomic policies, in particular the role of the IMF and the World Bank.Human development and the UN Sustainable Development Goals.Effects of aid on growth and poverty.Climate Change, poverty and conflict.Climate Change: adaptation and mitigation strategies.Trade policy and performance and the role of the WTO.Structural transformation and growthHistorical and geographical determinants of institutions and developmentRegional perspectives for East Asia, China and Africa.

This module generalises and builds upon the material covered in the year two modules, 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. Ìý

The module adopts a chronological overview of human development and economic history from the ancient times to the 20th century. It focuses on deep rooted determinants of economic development. You’ll gain an understanding of the main themes present in the economic history debate, as well as the main methodologies employed in the field. By incorporating some of the most recent literature on the economic history of non-European countries, it provides a non-Eurocentric view of global economic growth in a historical perspective.

Topics covered include:

• pre-industrial economies
• the industrial revolution and globalisation
• the inter-war period and retreat from globalisationÌý
• post-WW2 economic growth and the second globalisation

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 covers:

• saving, focusing on how agents make intertemporal decisions about their savings and wealth accumulation
• saving puzzles and household portfolios, focusing onÌýcredit 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

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 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.

This module covers:Ìý

• 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

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.

You can choose to undertake an independent research project, involving the application of techniques of economicÌýanalysis to a research topic of your choice. For this module, you’ll write an economics research paper. You’ll be supported with writing an undergraduate dissertation in economics.

This module covers the following:

Static numerical methods

• Numerical solution methods
• Numerical static optimisation methods
• Applications: resource allocation, computable general equilibrium

Dynamic numerical optimisation

• Discrete dynamic programming
• Implementation of the methods
• Applications: optimal growth, rational expectations, asset management

Agent-based economic modelling

• Foundations of agent-based modelling
• Basics of computer programming
• Applications: evolutionary games, marketsÌý Ìý