Finance

Core modules:

Modern Finance

This module will introduce you to some of the key concepts and methods in modern finance. This is an analytical module, which reflects the quantitative nature of the subject and in which each topic is developed from first principles. The module will cover the theoretical foundations of investor choice and portfolio selection based on utility theory, using these to provide a rigorous foundation for the Capital Asset Pricing Model. You will then examine some of the empirical issues that arise in the practical use of the theory.

15 credits

Macroeconomic Analysis

Macroeconomics concerns the behaviour of the economy as a whole. In this module you will develop a coherent framework for understanding macroeconomics building on microeconomic foundations. The module will analyse the source of business cycle fluctuations, the aims of monetary policy in advanced economies, including the design of optimal monetary policy. It will also provide an advanced understanding of fiscal policy and debt dynamics. You will be introduced to the concept of financial frictions in the context of the last financial crisis, and gain an understanding of the aims and challenges faced by monetary policy makers.

15 credits

Econometric Methods

This module will develop your core econometrics skills. The first half of the module provides a grounding in key econometric techniques covering elements such as the classical linear regression model, hypothesis testing and problems of non-spherical disturbances. More advanced topics are then introduced in the second half of the module. Specifically you will focus upon topics in microeconometrics: including modelling discrete binary variables; censoring and sample selection, and then topics in macroeconometrics including: economic forecasting; stationarity; and cointegration. You will also develop a knowledge of using econometric software Stata.

15 credits

Optional modules* - one from:

Microeconomic Analysis

Microeconomics is concerned with the behaviour of individuals, households and firms, and their interactions. This module aims to develop the skills you will require to analyse microeconomic problems and theories and to provide an introduction to advanced microeconomics. You will use mathematical and quantitative analysis to analyse topics such as consumer theory, risk and uncertainty, and intertemporal choice. In addition, this module will further develop your skills of critical evaluation and appraisal in the context of advanced microeconomic theory.

15 credits

Modern Theory of Banking and Finance

This module will give you a broad introduction into the economic literature on finance and banking. You will develop an understanding of the principles behind investment-financing decisions, the concept of governance and its implications for the efficiency of firms' investment decisions, and the role of financial intermediation. The module emphasises both theoretical and practical considerations. On completing this module, you will have a working knowledge of lexicon, theory, and tools associated with monetary theory and understand how the economy and financial markets fit together.

15 credits

Core modules:

Asset Pricing

This module will introduce you to the advanced principles of asset pricing in finance and the use of derivatives in risk management. You will gain knowledge of how important derivative assets are traded, the pricing models for important derivative assets, and the principles of hedging. This is an analytical module, which reflects the quantitative nature of the subject and in which each topic is developed from first principles. The module will cover both the theoretical foundations of asset pricing, the issues that arise in the practical use of these models and their limitations.

15 credits

Monetary Economics

This module will provide you with a formal analysis of monetary economics and an understanding of how monetary policy works. It will cover the role of monetary policy in the macro economy, and expose you to the latest theoretical developments in monetary theory and policy. You will also gain an appreciation of some of the limitations of monetary policy.

15 credits

Corporate Finance

This module will equip students with an understanding of the fundamental theoretical principles of corporate finance and the practical function of these principles when formulating investment  analysis and financial strategy. It will provide students with a deeper understanding of the financial decisions faced by firms with particular reference to the time value of money; valuation  techniques for stocks and bonds; financial statement analysis and modelling; the cost of capital and the capital structure decision; and the associated theoretical and empirical issues

15 credits

Core modules - you must choose one of the following options:

Applied Microeconometrics

The module provides examples and experience of applying standard microeconometric techniques to large sample surveys, with practical guidance on how to estimate and interpret results from different models. The syllabus covers topics such as limited dependent variables, instrumental variables, panel data methods and decomposition methods. Throughout use will be made of the Stata econometric software.

15 credits

Applied Macroeconometrics

This module will enable you to understand recent applied literature in core journals of macroeconomics and finance, which uses time series methods, and prepare you for possible later research involving time series. You will learn to identify the empirical features of macroeconomic and financial data, and how to analyse the dynamic interaction of macroeconomic variables over time using key econometric techniques. Throughout use will be made of the Stata econometric software.

15 credits

*the optional modules available each semester may change

MSc Dissertation

In this module students will complete an extended piece of written work on a topic of their choice. The dissertation will demonstrate their ability to carry out independent research and make an original contribution to the discipline.

60 credits