EC451     
Introductory Course for MSc EME

This information is for the 2017/18 session.

Teacher responsible

Prof Francisco Hidalgo 32L 4.20, Prof John Hardman Moore 32L 4.14 and Prof Michele Piccione 32L.4.07

Availability

This course is compulsory on the MSc in Econometrics and Mathematical Economics. This course is available on the MRes/PhD in Economics, MSc in Applicable Mathematics, MSc in Statistics, MSc in Statistics (Financial Statistics), MSc in Statistics (Financial Statistics) (Research) and MSc in Statistics (Research). This course is not available as an outside option.

Course content

MicroeconomicsThis introduction to microeconomic theory introduces the economic concepts of choice, preference and utility, including discussion of the revealed-preference approach to hedonics. It describes the consumer's problem and explores conditions under which consumer preferences, as well as policy preferences, can sensibly be aggregated. The course will also cover the mathematics of correspondences and fixed-point theorems.

Econometrics: 1.Linear regression model: Least Squares Estimator and Gauss-Markov's Theorem. Statistical properties with deterministic and nondeterministic regressors. Consistency and convergence in distribution.

2.Instrumental variables and GMM methods.

3.MLE and estimation of models with discrete dependent variables. Truncated and Censored models.

4.GLS estimation and dynamic models.

5.Introduction to Simultaneous Equations Models and Hypothesis Testing.

Macroeconomics:

The prequel of the advanced macroeconomics core course focuses on main macroeconomic concepts, main macroeconomic research questions, key empirical findings. It will also lay the foundation for the advanced macroeconomic course by introducing a simple dynamic model that is representative for modern macroeconomic models as well as the tools to use them. In particular, the introductory course will focus on some key growth and business cycle properties.

Teaching

The course is taught in September. It consists of a minimum of 30 hours of lectures and an additional 15 hours of classes, across a 3-week period.

Additional teaching sessions may be scheduled to accommodate the nature of the course and teaching styles of the individual micro, macro and econometrics teachers.

Formative coursework

Students will be expected to produce 3 problem sets in September.

Each day at the end of the lectures some exercises will be handed to students. They will be solved during the classes.

Indicative reading

Davidson and MacKinnon (2004) Econometric Theory and Methods.

Wooldridge (2010) Econometric Analysis of cross-section and panel data.

Ljungqvist, Lars and Thomas J. Sargent, 2012, Recursive Macroeconomic Theory.

Romer, David, 2011, Advanced Macroeconomics.

Assessment

Students will be required to complete a set of self-testing exercises during the course. At the end of the course, students will be examined on all three modules, microeconomics, econometrics and macroeconomics. Students wishing to continue studying MSc EME core courses must achieve an overall grade of 50% in EC451 Introductory Course for MSc EME with no one subject exam less than 40%.

Key facts

Department: Economics

Total students 2015/16: Unavailable

Average class size 2015/16: Unavailable

Controlled access 2015/16: No

Value: Non-assessed

Guidelines for interpreting course guide information

Personal development skills

  • Self-management
  • Team working
  • Problem solving
  • Application of information skills
  • Application of numeracy skills
  • Specialist skills