Module Code: EC4010
Module Title: Economic Theory
- ECTS Weighting: 15
- Semester/Term Taught: Michaelmas Term and Hilary Term
- Contact Hours: 44 hours of lectures and 8 hours of tutorials
- Module Personnel: Lecturers: Professor Tara Mitchell (MT) / Lecturer - Professor Paul Scanlon (HT)
Module Learning Aims:
By the end of the course, students will be conversant with modern economic models, and will be able to apply them to analyse economic policies and changes.
Upon successful completion, students will be able to:
- Describe models in game theory, especially as they relate to economics
- Use game theory models to analyse applied economic problems
- Interpret and analyse different models of economic fluctuations
- Analyse and extend models of long-run economic development
- Manipulate economic models to incorporate changes in economic policy
Satisfactory completion of this module will contribute to the development of the following key skills:
- Ability to apply game theoretic techniques to economic problems
- Ability to understand game-theoretic formulations of problems
- Ability to derive economic insights from models in game theory
- Ability to analyze modern economic models of growth and the business cycle
- Ability to synthesize economic models of growth and the business cycle
This course comprises two parts: Microeconomics (Module 1) and Macroeconomics (Module 2).
Module 1 Microeconomics:
Game theory has become a powerful tool of economic analysis for situations where a small number of economic agents (firms, governments, individuals) behave interdependently (anticipate how their decisions affect others and how these others will then react). This module will analyse simple games, introduce the most standard equilibrium concepts, and focus on applications of these techniques in a variety of economic settings. We will devote attention to applications in industrial organization, political economy, auctions. Some attention will be paid to recent developments in game theory and behavioural economics.
Module 2 Macroeconomics:
This module will cover selected topics in macroeconomics and will build on the foundations developed in EC3010. Topics covered include monetary policy; real business cycle theory; the Ramsey model; public finance; endogenous growth theory; asset pricing; and New Keynesian economics.
Recommended Reading List
Joseph E. Harrington, Jr., 2015, Games, Strategies and Decision Making, Worth Publishers
David Romer, Advanced Macroeconomics, 3rd edition, McGraw-Hill.
Module Pre Requisite
EC3010, and one of EC3080 and EC3090
There will be an assignment in Michaelmas Term accounting for 15% of the overall grade. There will be a Hilary Term assignment accounting for 15% of the overall grade. The annual exam is worth 70% of the overall grade.