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ECONOMICS

> Level 1
EC 1006
THE ECONOMICS OF BUSINESS AND SOCIETY
CREDIT POINTS 15

Course Co-ordinator: Dr A Zangelidis

Pre-requisite(s): None.

This course studies aspects of the behaviour and actions of people such as consumers, employees, and company managers, and the behaviour and activities of organisations such as firms, governments, and regulatory authorities, usually within capitalist societies. An important part of these behaviours and activities involves coming to terms with scarce resources. People want many things, but cannot afford them all, and do not have the time to enjoy them all, so must prioritise. Companies want to produce many things, but usually focus on a fairly small range of products. Prices may be high, or increasing, meaning profits for some producers, and prices that are too expensive for some consumers. In other cases, prices may be low and falling, being too low to cover the costs of some companies.

In capitalist systems markets are an important way in which economic activities are coordinated. This often works through buyers adjusting how much they want in relation to established prices, and producers deciding how much it is profitable for them to supply. Circumstances may change, allowing people to adjust such decisions. If such coordination is effective, markets are said to be in, or approaching, equilibrium. Markets though are not always effective in coordinating the plans of people. In cases of market failure, governments often become involved in regulating economic activities, or arranging for the production of goods and services, such as in the cases of health care, education, transport infrastructure, and television and radio broadcasting.

This course investigates reasons why coordination in markets can fail, and introduce ideas about what can be done through governments and other bodies to undertake coordination through other means.

The principles and concepts that are introduced will be of a general nature and are applicable to a large number of cases. We will discuss ideas about how consumers behave in typical situations, or how firms behave in typical situations. We will present concepts and principles mainly through discussion, supplemented by diagrams, and in a few cases through basic mathematical expressions.

3 one-hour lectures per week (Mon, Tues and Thur at 16.00) and 4 one-hour tutorial every two weeks and four computing workshops.

1st Attempt: 1 two-hour examination consisting of multiple choice and written elements (70%); continuous assessment (30%) consisting of three computer based quizzes (15%) and a written assessment (15%).

Resit: 1 two-hour written examination (100%).

Formative Assessment and Feedback Information

This will take place via on-going discussions in tutorials and via mock computer quizzes.

A written feedback sheet is used and this explains why students received a particular mark, outlines the strengths and weaknesses of the essay, and make suggestions as to how the student might improve future coursework submissions. 

On a less formal basis, via verbal feedback during tutorial discussions, and after tutorial presentations.

EC 1505
THE GLOBAL ECONOMY
CREDIT POINTS 15

Course Co-ordinator: Dr H Battu

Pre-requisite(s): None.

Co-requisite(s):

Note(s):

What are the causes of the current financial crisis and what can governments across the globe do about it? Why is it that certain countries have experienced rapid growth in incomes over the past century whereas others are stuck in severe poverty? Why do some nations have high rates of inflation and others stable prices or deflation? Why is unemployment low in some countries but very high in others? Why do all countries experience periods of economic recession and depression and how can government reduce the size of the associated fluctuations in incomes and employment?

This module, which looks at the behaviour of the economy as a whole, tries to answer these and other questions. This course introduces students to macroeconomic theory and policy. This will enable students to understand the determinants of the level of national income, the overall growth rate of the economy, unemployment and the rate of inflation as well as the role of government in influencing these variables.

2 one-hour lectures per week and 1 one-hour tutorial every two weeks.

1st Attempt: 1 two-hour examination (70%); continuous assessment (30%) consisting of an essay (18%) and a report (12%).

Resit: 1 two-hour written examination (100%).

Formative Assessment and Feedback Information

This will take place via on-going discussions in tutorials and via mock computer quizzes.

A written feedback sheet is used for both the essay and report and this explains why students received a particular mark, outlines the strengths and weaknesses of the essay, and make suggestions as to how the student might improve future coursework submissions. 

On a less formal basis, via verbal feedback during tutorial discussions, and after tutorial presentations.

 

> Level 2
EC 2003
INTERMEDIATE MICROECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Dr J Skatun

Pre-requisite(s): EC 1005.

This course builds on and is a natural extension of EC 1005. It will further develop the student's analytical skills, and hopes to investigate in a more rigorous way concepts introduced in EC 1005. The course is designed appeal to all students interested in economics. This includes both students who may wish not to enter into any further studies of economics, but rather pursue studies other than economics after the completion of this course, as well as students who may explicitly wish to continue their study economics at the honours level, and thus in part use Microeconomics II as a means to this end.

The course examines a number of key areas in microeconomics including demand theory, production and cost, factor markets, market structure and strategic interaction, externalities, public goods and evaluation of projects and the application of microeconomic principals to important spheres of economic policy such as the regulation of merger activity and the operation of investor owned utility monopolies.

3 one-hour lectures per week (Mon, Tue and Thursday at 15:00) and 1 one-hour tutorial every week (to be arranged).

1st Attempt: 1 two-hour examination (70%); continuous assessment (30%) consisting of three class tests.

Resit: 1 two-hour written examination (100%).

Formative Assessment and Feedback Information

This will take place via tutorial discussions.

Feedback is given after the class tests. On a less formal basis, via verbal feedback during tutorial discussions, and after tutorial presentations.

EC 2503
INTERMEDIATE MACROECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Dr W D McCausland

Pre-requisite(s): EC 1505.

Macroeconomics is the branch of economics that seeks to answer such high level questions as: What determines the level of aggregate income? Through what channels is it influenced by the fiscal policy of national governments and the monetary policies of central banks? What determines the effectiveness of fiscal and monetary policies, and how do exchange rate regimes and capital mobility impact on policy effectiveness. What determines the level of macroeconomic activity and its growth or decay over time? What determines inflation and unemployment?

This course will equip you with the principles you need to make sense out of the conflicting and contradictory discussions and policies. It is designed to meet the interests of those wishing merely to take a further course in economics as well as those intending to proceed to honours. This course builds on, and is a natural extension of The Global Economy (EC 1505). It will further develop your analytical skills, and will investigate in a more rigorous and analytical way concepts introduced in EC 1505, so that you are able to study interesting and challenging problems in the global economy.

3 one-hour lectures per week (Tue 15:00, Thursday 12:00 and 15:00), 1 one-hour tutorial every two weeks, and 2 one-hour computer workshops in weeks 35 and 36.

1st Attempt: 1 two-hour examination (70%); continuous assessment (30%) consisting of a piece of computer aided assessment (20%) and a graded tutorial presentation (10%).

Resit: 1 two-hour written examination (100%).

Formative Assessment and Feedback Information

This will take place via tutorial discussions and via a "trial (computer aided) assessment" in the computer workshop.

Feedback is given in the trial computer aided assessment on a question-by-question basis, giving students guidance on how to approach the question successfully. Oral feedback is given on the tutorial presentation.

On a less formal basis, via verbal feedback during tutorial discussions, and after tutorial presentations. Presentation slides and notes are submitted through WebCT and are available to the external examiner.

 

> Level 3
EC 3023
MATHEMATICAL & STATISTICAL METHODS IN ECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Dr J D Skatun

Pre-requisite(s): EC 2003 and EC 2503.

This course is a course in two parts. The first section deals with the use of Mathematics in Economic Modelling, whilst the second section introduces basic Statistical concepts and regression analysis.

1 three-hour lectures per week (Mon 13:00, Tuesday 14:00- 16:00), 1 one-hour tutorial every week, and 1 one-hour computer workshop in week 24.

1st Attempt: 1 three-hour examination (80%); continuous assessment (20%) consisting of a best of two mathematical quiz marks (4%), end of mathematical section test (6%), best of two statistical quiz marks (4%) and end of statistical section test (6%).

Resit: 1 three-hour written examination (100%).

Formative Assessment and Feedback Information

This will take place via tutorial discussions and information given in lectures.

Written feedback on quizzes and tests. Model answers will in the mathematical section be made available on myaberdeen. Students will be encouraged to request further oral feedback when needed. Oral feedback is given on the tutorial presentation.

On a less formal basis, via verbal feedback during tutorial discussions, and after tutorial presentations.

EC 3024
INTERNATIONAL ECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Dr W D McCausland

Pre-requisite(s): EC 2003 and EC 2503.

This course covers both international trade and international money.

The first part of the course analyses international trade flows in perfectly competitive markets based on differences in technology (classical trade) or factor abundance (neoclassical trade), including the distributional and welfare implications of trade policy. The analysis of international trade then continues by investigating the impact of imperfect competition, economies of scale and product differentiation (new trade), including strategic trade policy. Selected aspects of applied trade policy are also investigated.

The second part of the course begins by reviewing basic concepts in international money and then overviews various exchange rate theories, including the Dornbusch overshooting model. The analysis of international money then continues by examining the policy framework ? looking at the objectives, targets and instruments of international monetary policy, including target zones and financial crises.

1 three-hour lectures per week (Friday 14:00-17:00), and 8 one-hour tutorials over the duration of the course.

Note this course starts in 2012/13 and continues every two years thereafter.

1st Attempt: 1 three-hour examination (80%); continuous assessment (20%) consisting of a graded tutorial presentation (10%) and an essay (10%, maximum word count 2,000).

Resit: 1 three-hour written examination (100%).

Formative Assessment and Feedback Information

This will take place via tutorial discussions and through verbal feedback on the presentation which is then written up to form the essay.

Feedback is given on the presentation and the essay. Oral feedback is given on the tutorial presentation.

On a less formal basis, via verbal feedback during tutorial discussions, and after tutorial presentations. Presentation slides and notes are submitted through Turn It In and are available to the external examiner.

EC 3025
ECONOMICS OF NATURAL RESOURCES AND THE ENVIRONMENT
CREDIT POINTS 30

Course Co-ordinator: Professor J Swierzbinski

Pre-requisite(s): EC 2003.

This course covers both environmental economics and the economics of natural resources.

One of the main topics in environmental economics is the regulation of externalities or spillovers where one firm?s or one individual's actions affect other people. The course addresses this topic focusing on pollution and climate change as key examples. A second major topic in environmental economics is the valuation of environmental amenities such as clean air or outdoor recreation. The course studies some of the major methods used by economists to assign a value to such resources.

One of the main topics of natural resource economics is the management of common property resources. The course studies this topic using fisheries as an important example. Investment is a key issue for the study of exhaustible resources, which necessarily involve tradeoffs over time. Fossil fuel which is extracted today is not available tomorrow. The course studies how economists model some of these investment issues, which has implications for such policy questions as the determinants of the long run price of oil and the sustainable use of natural resources.

1 two-hour lecture and 1 one-hour lecture per week and 8 one-hour tutorials over the duration of the course.

1st Attempt: 1 three-hour examination (80%); continuous assessment (20%) consisting of a graded written essay (maximum 2500 words).

Resit: 1 three-hour written examination (100%).

Formative Assessment and Feedback Information

This will take place via tutorial discussions and written feedback on the written assignment.

Written feedback is given on the written assignment. On a less formal basis, verbal feedback is given during tutorial discussions.

EC 3026
DEVELOPMENT ECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Dr H Battu

Pre-requisite(s): EC 2003.

Note(s): This course runs every two years, starting in 2013/14. This course will not be available in 2012/13.

This course on Development Economics focuses on the countries of the developing world and tries to ascertain how low-income economies can be set on a track of sustained economic development in order to reduce poverty and achieve levels of wealth akin to developed economies.

[eg. 3 one-hour lectures (Tue, Wed, Thur at 11) and 1 one-hour tutorial (to be arranged) per week].

3 one-hour lectures per week (to be arranged) and, as of Week 2, 1 one-hour tutorial every week (to be arranged).

1st Attempt: 1 three-hour examination (80%) and in-course assessment (20%) consisting of a 2,000 word essay.

Resit: 1 three-hour examination (80%) and in-course assessment (20%) consisting of a 2,000 word essay. Previous coursework will be taken into account unless doing so would cause a student who passed the resit exam to fail the course overall, in which case the overall mark will be CAS 9.

Formative Assessment and Feedback Information

This will take place via tutorial discussions and through verbal feedback on the presentation which is then written up to form the essay.

Feedback is given on the presentation and the essay. Oral feedback is given on the tutorial presentation.

On a less formal basis, via verbal feedback during tutorial discussions, and after tutorial presentations.

EC 3521
ECONOMETRICS
CREDIT POINTS 30

Course Co-ordinator: Dr A Zangelidis

Pre-requisite(s): EC 3023: Mathematical and Statistical Methods.

Econometrics is concerned with testing the compatibility of economic theories with events in the real world. Its development has influenced recent changes that have taken place in Economics to such an extent that some knowledge of Econometrics is essential if much of the modern literature is to be understood. Economic theories are seen as hypotheses about the nature of the world, and are expressed as an equation or a system of equations. These equations are then estimated using one or more of the methods of Econometrics. The acceptability or otherwise of the theory can then be decided upon, or the theory itself may be modified and retested. Econometrics is essentially the application of scientific empirical methods to Economics.

1 two-hour lecture and 1 one-hour lecture per week (Tuesday 15:00-17:00, Thursday 15:00-16:00); 1 one-hour tutorial every week (staring from teaching week 3, 8 tutorials in total); 3 one-hour computer workshops in weeks 35, 36 and 37, and 2 one-hour computer multiple-question quizzes on weeks 34 and 42.

1st Attempt: 1 three-hour examination (70%), and in-course assessment (30%).

The in-course assessment will consist of 2 one-hour multiple choice quizzes. Each quiz will consist of 12 multiple choice questions, and will count 15% of the overall course mark (30% in total).

Resit: 1 three-hour examination (70%), and in-course assessment (30%). Previous coursework will be taken into account unless doing so would cause a student who passed the resit exam to fail the course overall, in which case the overall mark will be CAS 9.

Formative Assessment and Feedback Information

This will take place via tutorial discussions, via the computer workshops and via the (computer aided) assessments.

Feedback is given in the computer aided assessment on a question-by-question basis, giving students guidance on how to approach the question successfully.

On a less formal basis, via verbal feedback during tutorial discussions and computer workshops.

EC 3522
INDUSTRIAL ECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Professor J Swierzbinski

Pre-requisite(s): EC 2003.

Note(s): The course runs every two years, starting in 2014/15. This course will not be available in 2012/13.

This course covers many of the traditional topics of industrial economics.

This course covers many of the traditional topics of industrial economics.
Many industries are comprised primarily of a few large firms and, hence, are
not well described by the benchmarks of monopoly or perfect competition.
One important theme in industrial economics studies the strategic issues related to competition in an oligopoly, and the course reviews some of the main models and issues related to such competition. A related important issue discussed in the course involves the incentives and difficulties when firms collude to try and raise prices and increase profits in their industry.

Industrial economics traditionally also focuses on other elements of business
strategy and the course does so as well. One example is the use of price discrimination and other sophisticated methods of pricing such as bundling and quantity discounts. Another strategic issue is the use of advertising and other methods to differentiate your product from those of your competitors. Investment in research and development leading to new products or more efficient production processes is a third important element of business strategy.

Game theory provides a useful framework for considering strategic interactions between firms, and elements of game theory are discussed in the course.

The strategic behaviour considered in the course can affect the performance of industries with respect, for example, to the prices charged to consumers or the levels of investment in research and development. These performance issues create a possible role for public policy.

[eg. 3 one-hour lectures (Tue, Wed, Thur at 11) and 1 one-hour tutorial (to be arranged) per week].

1 two-hour lecture and 1 one-hour lecture per week and 8 one-hour tutorials over the duration of the course.

1st Attempt: 1 three-hour examination (80%); continuous assessment (20%) consisting of a graded written essay (maximum 2,500 words).

Resit: 1 three-hour written examination (100%).

Formative Assessment and Feedback Information

This will take place via tutorial discussions and written feedback on the written assignment.

Written feedback is given on the written assignment. On a less formal basis, verbal feedback is given during tutorial discussions.

EC 3523
REGIONAL AND URBAN ECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Dr H Battu

Pre-requisite(s): EC 2003 or PO 2006.

The regions and cities of various countries have had different economic experiences. This course seeks to explain why this is the case. Theories that explain differences in the rates of economic growth and levels of unemployment across regions are examined. The course also focuses on the processes of urban change, suburbanisation, crime and segregation.

3 one-hour lectures per week (to be arranged) and 1 one-hour tutorial every week (to be arranged).

1st Attempt: 1 three-hour examination (80%) and in-course assessment (20%) consisting of a 2,000 word essay.

Resit: 1 three-hour examination (100%).

Formative Assessment and Feedback Information

This will take place via tutorial discussions and through verbal feedback on the presentation which is then written up to form the essay.

Feedback is given on the presentation and the essay. Oral feedback is given on the tutorial presentation.

On a less formal basis, via verbal feedback during tutorial discussions, and after tutorial presentations.

EC 3524
HEALTH ECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Mr D Newlands

Pre-requisite(s): EC 2003.

This course discusses some of the principal themes in health economics. The relationship between health and health care is considered. The distinctive characteristics of health care as an economic good are explained. The course examines the demand for, and supply of, health care. It analyses different types of health care system throughout the world. The role and application of economic evaluation in health care are discussed.

3 one-hour lectures per week, 1 one-hour seminar every week (from week 4 of semester onwards).

1st Attempt: 1 three-hour examination (70%); continuous assessment (30%) consisting of an essay of 3,000 words.

Resit: 1 three-hour written examination (100%).

Formative Assessment and Feedback Information

This will take place via seminar discussions.

Oral feedback is given on each student's seminar presentation.
On a less formal basis, there will be constant feedback via individual discussions with students.

Feedback on the assignment will consist of completion of a feedback sheet with the mark and then comments under the following four headings: 'Interpretation', 'Knowledge', 'Organisation and presentation' and 'Action points.

EC 3525
LABOUR MARKET ECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Dr H Dickey

Pre-requisite(s): EC 2003.

Note(s): The course runs every two years, starting in 2013/14. This course will not be available in 2012/13.

The course aims to develop an understanding of the level and structure of wages and employment in advanced industrial nations. Distinguishing the nature and determinants of the supply of and demand for labour, the course analyses the behaviour of labour markets and offers explanations of the major outcomes. Current policy issues such as the impact of welfare benefits on labour supply, the minimum wage, and competing models of the labour market will be explored. The institutional and regulatory framework within which labour markets operate will be discussed and attention will be given to the analysis of wage structure, particularly wage differentials, labour market flexibility and unemployment.

3 one-hour lecture per week (Tue, Wed, Thur at 11), 1 one-hour tutorial every week (staring from teaching week 3, 8 hours in total).

1st Attempt: 1 three-hour examination (80%), and in-course assessment (20%).

The in-course assessment will consist of an essay, no more than 3,000 words in length.

Resit: 1 three-hour examination (80%), and in-course assessment (20%) marks carried forward. ?Previous coursework will be taken into account unless doing so would cause a student who passed the resit exam to fail the course overall, in which case the overall mark will be CAS 9.

Formative Assessment and Feedback Information

This will take place via tutorial discussions, and via the in-course assessment.

Feedback is given in the in-course assessment (essay), giving students guidance on how to improve answer and general presentation of essay.

On a less formal basis, via verbal feedback during tutorial discussions.

 

> Level 4

PLEASE NOTE: Resit: (for Honours students only): Candidates achieving a CAS mark of 6-8 may be awarded compensatory level 1 credit. Candidates achieving a CAS mark of less than 6 will be required to submit themselves for re-assessment and should contact the Course Co-ordinator for further details.

EC 4024
EXPERIMENTAL ECONOMICS :MARKETS, INSTITUTIONS, AND PUBLIC POLICY
CREDIT POINTS 30

Course Co-ordinator: Professor M Costa-Gomes

Pre-requisite(s): EC 2003 Intermediate Microeconomics Student must be in Programme Year 4.

The purpose of this course is to expose students to the methodology of experimental economics and to give an overview of some of its uses in different areas of Economics, namely the functioning of markets, the effects of institutions on the decisions of economic agents, and to address public policy issues. The course is designed so as to allow the student hands-on experience of participating in experiments.

1 one-hour and 1 two-hour lecture (to be arranged) and 1 one-hour tutorial (to be arranged) per week.

1st Attempt: 1 three-hour examination (70%); continuous assessment (30%) consisting of in-class quizzes.

Resit: None.

Formative Assessment and Feedback Information

This will take place via tutorial discussions and via (computer aided) online questions submitted by students prior to the tutorial.

Feedback is given for the questions in the problem sets distributed in the lectures through the provision of sketch answers. Feedback on continuous assessment quiz(zes) provides further guidance on how to approach questions from a variety of topics covered successfully. On a less structured basis, verbal feedback is given in the tutorials.

EC 4025
MICROECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Professor E Phimister

Pre-requisite(s): EC 2003 Intermediate Microeconomics EC 3001 Mathematical and Statistical Methods in Economics. Students must be in Programme Year 4.

This course examines a number of important topics in microeconomics in greater depth than the microeconomics course at level two. In the first part of the course both the consumer's and producer's problem are examined using a number of analytical tools developed in EC 3001. The second part of the course considers market structure and general equilibrium theory in more detail. The third section focuses on the economics of uncertainty and game theory.

1 two-hour and 1 one-hour lecture per week (to be arranged), 1 one-hour tutorial class every week (to be arranged).

1st Attempt: 1 three-hour examination (70%); continuous assessment (30%) consisting of four in-class tests.

Resit: None.

Formative Assessment and Feedback Information

This will take place via tutorial discussions and via a (computer aided) online questions submitted by students prior to the tutorial.

Feedback is given for the submitted online questions on a question-by-question basis. Feedback on continuous assessment tests provides further guidance on how to approach the questions successfully. On a less formal basis, via verbal feedback during tutorial discussions.

EC 4026
ECONOMICS DISSERTATION
CREDIT POINTS 30

Course Co-ordinator: Mr D Newlands

Pre-requisite(s): Available only to Senior Honours candidates for Honours in Economics. Compulsory for Single Honours Economics candidates. No student is allowed to include both EC 4001 and EC 4501 in their degree programme.

There are no explicit rules regarding the subject matter of the dissertation but the topic must be approved by the Course Co-ordinator.

No formal classes; 'teaching' consists of an initial meeting with the Dissertation coordinator followed by meetings, as frequently as is appropriate, with the student's supervisor.

Dissertation of maximum 10,000 words (100%).

Formative Assessment and Feedback Information

Discussion between supervisors and students .

Oral and written feedback from supervisors.

EC 4504
HISTORY OF ECONOMIC THOUGHT
CREDIT POINTS 30

Course Co-ordinator: Professor I Theoddosiou

Pre-requisite(s): Available only in Programme Year 4, EC 2002 and EC 2502.

This course examines the history of economic ideas and the evolution of the main schools of economic thought from the eighteenth century to the present day. It traces the development of modern economic thought and discusses the evolution of economic ideas through the important traditions. The course provides a bird's eye view of the main controversies in the discourse in economics and discusses their policy implications with regard to their contemporary relevance.

1 three-hour lecture per week (12:15 pm on Tuesdays), 1 one-hour tutorial per week for 2 groups of students, (13:00-14:00pm and 14:00-15:00pm both on Thursdays).

1st Attempt: 1 three-hour examination (80%); continuous assessment (20%) consisting of a critical essay (maximum word count, 3,000), selected from one of the topics provided to the students. Each student is required to make a 15 to 20 minute oral exposition of the written essay. This is followed by a ten minute period of group discussion of any issued raised during the exposition. The oral exposition is worth 10% of the assessable coursework, that is, 10% of the mark for the entire course. Following the presentation and discussion the student is expected to refine the exposition material and resubmit the essay within one week in written form as the assessed essay which is worth the other half of the assessable coursework, that is, another 10% of the mark for the entire course.

Resit: None.

Formative Assessment and Feedback Information

This will take place via tutorial discussions.

The critical essay is returned to the student within two weeks of submission with comments on the essay and a mark for both the oral exposition and the essay. Oral feedback is given on the tutorial presentations and discussions. Presentation slides and notes are submitted through WebCT and are available to the external examiner.

EC 4505
ADVANCED MACROECONOMICS
CREDIT POINTS 30

Course Co-ordinator: Dr W D McCausland

Pre-requisite(s): Available only in Programme Year 4, EC 3001.

This course seeks to develop an understanding of Macroeconomic theory as a systematic way of analysing the behaviour of the macro economy. The course focuses on two key issues of economic policy debate, namely economic growth and monetary policy. The emphasis is on the recent developments in macroeconomic theory with particular reference to current problems.

The first part of the course deals with economic growth, probably the primary issue of concern to economic policy makers today. Standards of living in some countries have risen dramatically, while others continue to languish in poverty. Growth theory is concerned with the economic mechanisms that govern such behaviour. Modern growth theory is increasingly concerned with technology, increasing returns, productivity, human capital and research and development. We select a small number of prominent theories in the field and examine each in detail, providing us with a wide range of simple but sharp results on the dynamic behaviour of the economy. We begin by looking at exogenous growth models (including the neoclassical Solow-Swan model of the 1950s and the infinite horizon Cass-Coopmans-Ramsey and overlapping generations Diamond model of the 1960s). In exogenous growth models, human capital accumulation, which drives long run growth, is exogenously determined (by, for example, savings rates, population growth or exogenous technological progress). The models are dynamic and are not bound by the assumption of diminishing returns in the accumulation of factors. Finally, we look more closely at investment - the key to long run growth, but also highly volatile in the short run. We develop the q-theory of investment and examine the effect of permanent and temporary demand shocks, interest rate changes and changes to tax credit. This topic provides the bridge between macroeconomics and monetary economics.

The second part of the course focuses on issues related to the workings of a monetary economy. In this part some fundamental questions about money in the macroeconomic framework. What is a monetary economy? Why does money exist? How do we measure the benefit of money in an exchange economy? It further deals with various issues concerning money in a conventional macroeconomic framework related to the various formulations of demand for money functions. Finally issues of the money supply function will be discussed with special attention to the role of the financial intermediation. The fifth part of the course deals with objectives and instruments of policy and deals with questions such as what economic policy is supposed to do? What is the responsibility of the fiscal policy versus the monetary policy? Are fluctuations in the economy caused by real forces or monetary forces?

1 three-hour lecture per week (Friday 14:00-17:00), and 8 one-hour tutorials over the duration of the course.

1st Attempt: 1 three-hour examination (70%); continuous assessment (30%) consisting of a graded tutorial presentation (10%) and an essay, maximum 2,000 words (20%).

Resit: None.

Formative Assessment and Feedback Information

This will take place via tutorial discussions and through verbal feedback on the presentation which is then written up to form the essay.

Feedback is given on the presentation and the essay. Oral feedback is given on the tutorial presentation.

On a less formal basis, via verbal feedback during tutorial discussions, and after tutorial presentations. Presentation slides and notes are submitted through Turnitin and are available to the external examiner.

EC 4526
ECONOMICS DISSERTATION
CREDIT POINTS 30

Course Co-ordinator: Mr D Newlands

Pre-requisite(s): Available only to Senior Honours candidates for Honours in Economics. Compulsory for Single Honours Economics candidates. No student is allowed to include both EC 4001 and EC 4501 in their degree programme.

There are no explicit rules regarding the subject matter of the dissertation but the topic must be approved by the Course Co-ordinator.

No formal classes; 'teaching' consists of an initial meeting with the Dissertation coordinator followed by meetings, as frequently as is appropriate, with the student's supervisor.

Dissertation of maximum 10,000 words (100%).

Formative Assessment and Feedback Information

Discussion between supervisors and students.

Oral and written feedback from supervisors.