Introductory Course for MSc EME

This information is for the 2021/22 session.

Teacher responsible

Prof Taisuke Otsu 

Prof Michele Piccione 

Prof John Moore 

Prof Franciso Javier Hidalgo



This course is compulsory on the MSc in Econometrics and Mathematical Economics. This course is not available as an outside option.

The course is split into three parts: Microeconomics, Macroeconomics and Econometrics. 

Non-EME students wishing to take EC487 Advanced Microeconomics as part of their programme must attend Week 1 of the EC451 course, Microeconomics, and sit the EC451 Microeconomics examination.

Non-EME students wishing to take EC484 Econometric Analysis as part of their programme must attend Week 3 of the EC451 course, Econometrics, and sit the EC451 Econometrics examination.

Non-EME students are not permitted to attend Week 2 of the EC451 course, Macroeconomics. 

Course content

Microeconomics (Week 1):

This section focuses on microeconomic theory and introduces the economic concepts of choice, preference, and utility, including a discussion of the revealed-preference approach. It describes the consumer's problem and investigates the properties of its solutions.  It discusses how social preferences can sensibly be aggregated. The course will also cover some basic real analysis, correspondences, and fixed-point theorems.

Macroeconomics (Week 2):

The prequel of the advanced macroeconomics core course focuses on topics in modern macroeconomic theory, starting with basic national income accounting and the real-business cycle model. Then sticky prices. Followed by matching frictions in the labour market. Finally credit market imperfections. 

Econometrics (Week 3):

Day 1-4 (Prof Otsu): This part introduces basic concepts and theory for mathematical statistics and probability. This part mostly focuses on linear regression model and covers the topics, such as (i) Conditional expectation and projection, (ii) Algebra of least squares, (iii) Finite sample theory, (iv) Maximum likelihood (v) Introduction to asymptotic theory, and (vi) Hypothesis testing. Also, some background mathematical results are reviewed.

Day 5 (Prof Hidalgo): Last day is devoted to introduction to MT part of EC484. Further concepts and results on convergence of variables are discussed.



The course is taught in September. It consists of approximately 45 hours of lectures and an additional 22 hours of classes, across a 3-week period. Lectures and classes will be delivered online through a mix of interactive live sessions and pre-recorded content.

Formative coursework

After each lecture, some exercises will be handed to students. They will be solved during the classes.

Indicative reading

Prof Bruce Hansen's lectures note at University of Wisconsin-Madison (1st year PhD level), downloadable at:

(The first link is the main reference, and the second link is a background for the course.)

Rubinstein (2012) Lecture Notes in Microeconomic Theory

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

Romer, David (2011) Advanced Macroeconomics.


At the end of the course, students will be examined on all three modules, microeconomics, econometrics and macroeconomics.

Students from programmes other than MSc EME wishing to continue studying MSc EME core courses must achieve at least 40% in each subject exam.

Course selection videos

Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.

Important information in response to COVID-19

Please note that during 2021/22 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the differing needs of students in attendance on campus and those who might be studying online. For example, this may involve changes to the mode of teaching delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Economics

Total students 2020/21: 36

Average class size 2020/21: Unavailable

Controlled access 2020/21: No

Value: Non-credit bearing

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