Swedish name: Economics B1
This syllabus is valid: 2009-08-31 and until further notice
Course code: 2NE036
Credit points: 30
Education level: First cycle
Main Field of Study and progress level:
Economics: First cycle, has less than 60 credits in first-cycle course/s as entry requirements
Grading scale: Three-grade scale
Responsible department: Department of Economics
The course consists of four modules of 7.5 credits/7.5 ECTS each: Macroeconometrics, Industrial Economics, Financial Economics, and Environmental and Natural Resource Economics. Module 1: Macroeconometrics (7.5 credits/7.5 ECTS) The object of this module is twofold. First, to analyse short and long term macroeconomics and second, to introduce and apply econometric methods. The module begins with an introduction to the Ordinary Least Squares (OLS) method which is used to estimate different growth models, also presented in the first section of this module. These exogenous growth models of Solow-type are also used to discuss different problems involved in time series analysis, like heteroskedasticity, serial correlation and multicollinearity etc. Thereafter, the causes of short-term fluctuations in production and income are studied, focusing on theories that strive to explain consumption, gross investment and net exports. Unemployment and inflation are studied within an aggregate supply-aggregate demand framework for the goods market. The functioning of the labour market is also studied, as well as problems related to wage formation and competitiveness. Furthermore, short- and long-term effects of macroeconomic disturbances on national product, interest and exchange rates are studied, including the interdependencies of these variables. The module also discusses conditions and effects of economic policies under different exchange rate regimes. Module 2: Industrial Economics (7.5 credits/7.5 ECTS) The aim of the module is to provide basic knowledge of how companies and markets are organised and how they interact. The module studies models of companies and markets which are more realistic than the extremely simplistic models studied in introductory courses of economics. The starting point of the module is the existence of various types of friction such as limited information, transaction costs, menu costs, public intervention and barriers to entry in different markets. The organisation of firms is studied as well as how they compete as a consequence of these types of friction. Within the subject of industrial economics there are two dominating and competing viewpoints. The first, the "Structure-Conduct-Performance" paradigm, is mostly descriptive, while the second, the price-theory paradigm, describes corporate behaviour and market structure starting in microeconomic theory. Apart from these two paradigms there are other viewpoints for the analysis of companies and markets. Some authors use differences in transaction costs in order to explain why structure, behaviour and results vary across industries. Other authors create game theoretic models, where corporations participate in a game over profits and the individual corporation attempts to decide a strategy with respect to, for instance, production, pricing and advertising in order to achieve the best resulting profit. Yet other authors have devoted great attention to so-called "contestable markets" during the last decades. Contestable markets are markets with! few corporations where new corporations are quick to establish themselves if the discrepancy between prices and costs becomes great. At the same time, exit costs or costs of closing down can influence whether corporations decide to establish in new markets or not. The basic theories of industrial economics are used to analyse corporate organisation and behaviour in different markets. The different paradigms are seen as complements, contributing to the understanding of industrial economics. The econometric part of this module mainly build upon the methods introduced in module 1, but some topics, e.g. heteroskedasticity are focused. Simple models for profit and demand analysis are studied. Module 3: Financial Economics (7.5 credits/7.5 ECTS) The aim of the module is to provide basic theoretical and empirical knowledge of financial markets and financial activity as well as skill in applying this knowledge in the analysis of current problems in financial economics. The following areas are discussed: Balance sheets for economic agents and sectors. The connections between the real and financial sides of the economy and the roles that financial markets and financial corporations play in the economy. Interest rate theories. The Fisher effect. The market for discount instruments and bonds. The yield curve. Financial intermediaries. Financial risks and risk hedging. Derivatives. The exchange market. Interest-rate parity. Exchange rate theories. Monetary policy: goals, tools, indicators, instruments. The stock market. Throughout the module, great importance is attached to the illustration and application of concepts, relationships, models and theories on current problems, developments and tendencies on the financial markets in Sweden as well as internationally. Module 4: Environmental and Natural Resource Economics (7.5 credits/7.5 ECTS) The aim of the module is to provide insights into social cost-benefit analysis of natural resource economics in a broad sense and to make a deeper analysis of instruments of environmental policy. Natural resources are here taken to mean renewable natural resources such as forests, as well as non-renewable resources such as oil. Resource allocation is analysed within the framework of a perfect market economy, as well as in a context where the exploitation or usage of a resource does not meet the criteria of a perfect market economy, for instance because of negative side effects. The reviewed theory is applied to a number of different kinds of environmental policy problems. Central questions are: How much should be spent improving our environment? How efficient are different types of environmental policy instruments? Furthermore, concepts such as "sustainable development" and "green national income accounting" are explained and analysed.
The aim of the course is to provide in-depth knowledge of economic theory and skill in applying economic theory to current problems, as well as giving knowledge of economic relationships and tendencies and ability to analyse these critically. The course is intended to give in-depth knowledge of financial economics, of macroeconomic problems, of long-term growth and productivity development, and of conditions and effects of stabilisation policy. Furthermore, the course aims at giving in-depth knowledge of resource allocation problems, industrial economics, demand analysis and market assessments. Students who successfully complete this course are expected to know basic economic theory and possess skill in applying economic theory to current problems, as well as possess knowledge of economic relationships and tendencies and ability to analyse these critically.
Univ: Economics or equivalent 30 ECTS (A-level).
Teaching will be in the form of group tutoring.
Students are graded after a written examination upon the completion of a module. Optional minor written examination may be included in the assessment scheme. On all modules one of the expressions Fail, Pass and Pass with distinction is employed as a grade. Students who do not pass at the time of the normal written examination will be offered an opportunity to sit a further examination within 2-3 weeks. Beyond that, additional examination opportunities normally arise every academic year in addition to one during the week prior to the start of the autumn term. Grades on the course are awarded when students have passed all examinations. To obtain the grade Pass on the course a Pass on all four modules is required. For the course grade Pass with distinction the grade Pass with distinction is required on three out of four modules. When a student has failed an examination on two occations, he or she may request to have another grading teacher. A written request should be handed to the director of studies no later than two weeks before the next examination opportunity. Students, who are admitted to the course, have a right to be examined on the course and its modules as defined by this syllabus for a period of up to two years after the syllabus has been revised and replaced by a new syllabus or, alternatively, after the course has been discontinued.
Mankiw N. Gregory
Macroeconomics
6. ed. : New York : Worth Publishers : 2006 : xxxvi, 578 s. :
ISBN: 0-7167-6213-7
Search the University Library catalogue
Studenmund A. H
Using econometrics : a practical guide
5. ed. : Boston, Mass. : Addison Wesley : cop. 2006 : 639 s. :
ISBN: 0-321-31155-8
Search the University Library catalogue
Modern industrial organization
Carlton Dennis W., Perloff Jeffrey M.
3. ed. : Reading, Mass. : Addison-Wesley Longman : cop. 2000 : xviii, 780 s. :
ISBN: 0-321-01145-7 (inb.)
Search the University Library catalogue
Studenmund A. H
Using econometrics : a practical guide
5. ed. : Boston, Mass. : Addison Wesley : cop. 2006 : 639 s. :
ISBN: 0-321-31155-8
Search the University Library catalogue
Finance
Bodie Zvi, Merton Robert C.
Upper Saddle River, NJ : Prentice Hall ;a London :b Prentice Hall International : cop. 2000. : xxxi, 479 s. :
http://www.prenhall.com/bodiez Companion web site
ISBN: 0-13-086933-3 (International ed.)
Search the University Library catalogue
Kolstad Charles D.
Environmental economics
New York ;a Oxford : Oxford University Press : 2000 : xi, 400 s. :
ISBN: 0-19-511954-1
Search the University Library catalogue
Studenmund A. H
Using econometrics : a practical guide
5. ed. : Boston, Mass. : Addison Wesley : cop. 2006 : 639 s. :
ISBN: 0-321-31155-8
Search the University Library catalogue