- Every programme has its own core and elective modules. Please consult course content for details.
- The module content below applies to the current academic year and is intended as an indication only. It may be subject to change for future entry.
Advanced topics are drawn from: growth theory; business cycle theory: DSGE Modelling; monetary theory and their respective applications.
Topics, reflecting the current state of the field, may include: consumer theory; producer theory; decision making under risk and uncertainty; incentives and strategic behaviour; market equilibrium; general equilibrium; welfare economics.
Behavioural Finance and Economics
Topics covered will depend on the current nature of the discipline, but are likely to include: the Efficient market hypothesis; anomalies in financial markets; limits to arbitrage; prospect theory and frame dependence; cognitive heuristics and biases.
The module covers the economics and policies of development. Topics will be drawn primarily from the following: poverty and inequality; economic growth; international trade and development; foreign direct investment and growth; micro finance; finance and emerging markets; health and education policy; foreign aid; political economy of development; economics of population.
Linear Regression Model using some Matrix Algebra, Gauss-Markov, Identification, OLS, finite sample properties of the OLS estimator; Hypothesis testing and Confidence intervals; Asymptotic properties of the OLS estimator; Misspecification and dummy variables; GLS, autocorrelation and heteroskedasticity; Endogeneity, Simultaneity, Instrumental Variables (IV) estimation; Maximum Likelihood (ML); Binary Choice Models (Logit/Probit); Econometrics I; Linear Regression Model using Matrix Algebra, Gauss-Markov, Identification, OLS, finite sample properties of the OLS estimator; Hypothesis testing and Confidence intervals; Asymptotic properties of the OLS estimator; Misspecification and dummy variables; GLS, autocorrelation and heteroskedasticity; Endogeneity, Simultaneity, Instrumental Variables (IV) estimation; Generalized Methods of Moments (GMM); Maximum Likelihood (ML).
Time series data, stationarity, ARMA models, Box-Jenkins methodology; Forecasting; Models for non-stationary data, Unit root tests; Cointegration: Single-equation methods, Engle-Granger methodology, Error correction model (ECM); Dynamic regression models, Distributed lag models and Autoregressive distributed lag models; VAR models, Impulse Response Analysis; Cointegration in a System: VECM, Johansen approach; Volatility Models: ARCH, GARCH.
Environmental Economics and Policy
welfare economics; theory of externalities implied by air pollution; Pareto-optimal allocation; Government intervention; pollution standards, emissions taxes and tradable permits; natural resources and the international dimension of environmental policy; design and implementation of international environmental agreements; environmental policy.
Topics will be drawn primarily from the following: concepts of value; revealed preferences techniques (e.g. Hedonic Pricing Method, travel costs method, etc.); Stated preferences techniques (e.g. Contingent Valuation Method, etc.); Cost-benefit analysis; Environmental accounting including Green National Accounting.
Experimental Economics and Finance
behavioural approach in economics and finance; markets or auctions; economic behaviour in markets; bargaining; auctions; game theory; public choice; choice under uncertainty and choice over time.
Financial Modelling and Business Forecasting
The statistical properties of univariate time series models and their application in Finance; Models of nonstationary time series; Cointegration and error-correction model; Cointegration in multivariate systems; Modelling volatility; Future topics on ARCH; Forecasting in financial econometrics.
The module covers game theory and its economic applications. Topics will be drawn primarily from the following: Nash equilibrium and refinements; games of perfect and incomplete information; auctions; bargaining; mechanism design; dynamic games; differential games; cooperative game theory.
The module focuses on market structures, strategic interaction between firms, and competition policy, in particular regulation. Topics will be drawn primarily from the following: imperfect competition; monopolistic competition; oligopoly; contestable markets and barriers to entry; technology and innovation; government regulation and competition policy.
Models of exchange rate determination; currency crises; intertemporal approach to the current account; globalisation; Ricardian Trade Theory; Hecksher-Ohlin trade theory; New Trade theory; international labour migration.
Economics of exchange rates; purchasing power parity; models of exchange rates; foreign exchange market efficiency.
Financial markets and trading industry - an introduction; the structure of trading; trading systems; the suppliers of liquidity and market liquidity; empirical issues on market microstructure.
Static and dynamic models for panel data: random-effects approach, fixed-effects approach; Limited dependent variable models: discrete response, censored regression, sample selection; Treatment effect models: regression-based methods, alternative methods (e.g. matching).
Central Bank independence; background to monetary policy; credibility and time-inconsistency in monetary policy; international monetary policy co-ordination; the demand for and supply of money; the monetary transmission mechanism; monetary policy in practice; exchange rates and external arrangements.
Money and Banking
Monetary policy transmission (traditional channels of transmission of monetary policy; the credit channel; the balance sheet channel; the bank lending channel); The financial system and the corporate sector (capital market imperfections and investment decisions; the Q model approach; the Euler equation approach; the error correction specification approach and other approaches; capital market imperfections and inventory accumulation decisions; the reduced form approach; the linear quadratic model approach; capital market imperfections and other aspects of firm behaviour); The financial system and the personal sector: capital market imperfections and consumption.
Natural Resource Management
Introduction to natural resource constraints; Ecological systems over time; Population models; Optimal resource management over time; Renewable resource economics; Non-renewable resource economics; Fisheries and forests: optimal harvesting, stock recovery, and assessing extinction.
The economics of voting; Electoral competition; Political institutions and legislative bargaining; Coalition formation; Interest groups and lobbying; Rent seeking.
theoretical and practical issues in taxation and public expenditure; second-best problems regarding taxation and public expenditure, and their applications; political economy aspects of public economics, including the effects of government policy on, eg. economic performance, distribution and welfare; the normative theory of government policy, eg. evaluation of tax systems on the basis of efficiency, redistribution, and correction of market imperfections.