Economics MSc

Core modules:

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 introduce advanced microeconomics. You will use mathematical and quantitative analysis to analyse topics such as consumer theory, behavioural economics, risk and uncertainty, production, and general equilibrium. In addition, this module will further develop your skills of critical evaluation and appraisal in the context of advanced microeconomic 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:

Corporate Finance

This module will aim to equip you with a comprehensive foundation of the core theoretical principles of corporate finance, along with practical insights into how these principles are applied when formulating investment analysis and financial strategy. You will be provided with a deeper understanding of key financial decisions faced by firms, with a particular focus on investment appraisal methods; risk management techniques; valuation techniques for stocks and bonds; financial statement analysis and modelling; the cost of capital and the capital structure decision. Additionally, the module will explore both the theoretical and empirical aspects of these topics, equipping you to tackle real-world financial challenges. 

15 credits

Behavioural Finance

This module explores the principles of Behavioural Finance, which integrates psychological insights into financial decision-making. Traditional finance models assume rationality, but Behavioural Finance recognizes the role of cognitive biases, emotions, and psychological factors in shaping market outcomes and individual decisions. The module aims to provide you with a deep understanding of how human behaviour impacts financial markets, asset pricing, corporate decision-making, and personal investing.

The following key topics will be covered: Expected Utility Theory; Asset Pricing, Market Efficiency, and Agency Relationships; Prospect Theory, Framing and Mental Accounting; Challenges to Market Efficiency; Heuristics and Biases; Overconfidence; Emotional Foundations; Experimental Behavioural Finance; Behavioural Corporate Finance; Investor Behaviour: The application of Behavioural Finance in Financial Planning and Investing. 

This module will equip you with a comprehensive understanding of how psychological factors influence financial markets and investor behaviour, helping them apply these insights to real-world financial problems.

15 credits

*the optional modules available each semester may change

Core modules - one or two from:

Applied Econometrics: Cross-sectional and Panel Data Approaches

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 difference in differences methods. 

15 credits

Applied Econometrics: Time Series Approaches

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

Optional modules* - three from:

International Money and Finance

In this module, you will acquire an understanding of the relationship between domestic and international economic activity in an open economy. You will learn to relate the various motives underlying international financial flows to their effects on real economic variables. The module will introduce mainstream theories of the determination of equilibrium exchange rates, both in the short run and the long run. You will also explore the causes of international financial crises and consider policy responses.

15 credits

Industrial Organisation

This module will introduce you to contemporary topics in industrial organisation with a particular emphasis on the role of economic analysis of strategic decision making. You will learn to use and appraise a range of economic techniques to make better strategic decisions. In this module you will build on and expand on your knowledge of microeconomics related to market structure; such as competition in oligopolistic industries. You will also become familiar with further oligopoly models (product differentiation, collusion, mergers) as well as behaviour in platform markets. We will also consider market implications when consumers are imperfectly informed (or naive) about prices or product characteristics.

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

Public Economics

This module will provide you with a comprehensive grounding in public economics. Government policies, through fiscal policy instruments, can have a massive impact on the allocation of resources and the distribution of income in the economy. This module evaluates the government's ability to identify and achieve more efficient and equitable outcomes than the situation without intervention. You will apply the theory in the analysis of real world public policy programmes.

15 credits

International Trade

This module will provide you with an overview of the theory of international trade to explain the patterns of exchange of goods and services between countries, international migration and foreign direct investment flows. The module provides a survey of all the main models of international trade and foreign direct investment, supplemented by applications to key contemporary policy issues. You will use a number of analytical tools and empirical methods to analyse trade and policy issues.

15 credits

Applied Econometrics: Cross-sectional and Panel Data Approaches

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 difference in differences methods. 

15 credits

Applied Econometrics: Time Series Approaches

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

Theory of Banking

This is an advanced module that provides a comprehensive examination of contemporary banking practices and challenges. This module covers both on balance sheet and off balance sheet operations with an emphasis on identifying and managing the main banking risks. You will examine the nuances of financial crises and the workings of bank funding schemes. Important facets of contemporary bank regulation are also covered in the module.

15 credits

Derivatives, Options, and Securities

The aim of this module is to introduce you to advanced principles of asset pricing, focusing on financial derivative instruments. You will gain knowledge of how important derivatives are traded, the pricing models for derivatives, and the principles of risk management using derivatives. This is an analytical module, which reflects the quantitative nature of the subject. The module will cover both the theoretical foundations of asset pricing, and the issues that arise in the practical use of these models and their limitations.

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