Economics - continuation course

Content The course comprises five modules. Module 1 Quantitative Methods in Economics, 4,5 ECTS cr. The module starts with a mathematical component, revising basic arithmetic and equation solutions and continuing with one-variable analysis, differential calculation and optimisation. Multivariate analysis, optimisation, and optimisation with subsidiary conditions are briefly treated. Instruction focuses on aspects of relevance to economics, applied mathematics, and skills in practical problem-solving. Module 2 Microeconomics, 9 ECTS cr. Students develop deeper and broader knowledge of microtheory compared to previous courses. They study consumption, production, and general equilibrium theory with the help of analytical methods. Areas studied are, for example, individual demand function, disclosed preferences, income and substitution effects, intertemporal choice, choice under uncertainty, game theory, partial and general market equilibrium. Welfare theory and a thorough study of why the market can fail due to external effects are also included as are collective utilities and information deficit (asymmetric information). Module 3 Macroeconomícs, 7.5 ECTS cr. The module starts with a revision of basic financial accounting concepts and definitions of different macroeconomic entities such as gross and net national products, national income, trade and exchange balance, consumer price index, inflation, and rate of unemployment. Then follow discussions of the relation between the real and monetary side of the economy and how monetary demand and supply determine price and interest levels. The relation between growth in money supply and the rate of inflation is treated and the social costs of inflation discussed. The next theme is the conditions for monetary and fiscal policy in a small open economy combined with a discussion of different types of exchange rate regime and the consequences on efficiency in various fiscal measures. The module also treats the unemployment problem, long-term growth, and the consequences of permanent deficit in the public sector budget. Module 4 Econometrics, 6 ECTS cr. Students acquire further knowledge of the statistical methods applied in the field of economics. Different types of models, primarily the regression models and simple time series models, are presented, as are different methods of inference theory and diagnostic techniques to evaluate the models. In regression analysis, simple linear regression, multiple regression, multicollinearity, heteroskedasticity, and autocorrelation are treated. Module 5 Essay, 3 ECTS cr. The module runs parallel with the other modules to allow students to conduct their own study of a micro or macroeconomic problem with the help of econometry. Students draw on all modules while also developing skills for future thesis projects.