MSc in Economics

The MSc in Economics is the year 1 of the 1+3 ESRC-recognised PhD programme specialising in macroeconomics at Cardiff Business School, and provides a comprehensive first year of training for this programme. It is also a stand-alone MSc in Economics for those who wish to specialise in macroeconomics with a view to working in research departments of the government (Finance Ministry, Treasury), the Central Bank or international agencies specialising in macroeconomic policy (OECD, IMF).

In the autumn semester students follow four core modules in Microeconomics, Econometrics and Research Methods.

Autumn Semester

Four compulsory modules

Advanced Microeconomics 1 (Theory)

Duality in demand and production theory; Factor markets; Market equilibrium and market failure; Game theory: games of complete and incomplete information; Static and dynamic games; Choice under uncertainty; Asymmetric information: moral hazard and adverse selection; Applications to insurance markets, principal-agent problems, signalling and screening; General equilibrium and the core; Welfare economics: externalities and public goods; Uncertainty and equilibrium; Time and asset markets; Intertemporal preference.

Advanced Macroeconomics 1

(In combination with Advanced Macroeconomics 2) Rational expectations; Stabilisation policy, time inconsistency; Policy credibility; Political economy of the business cycle; Unpleasant Monetarist Arithmetic; Ricardian equivalence; Solvency; Optimal tax smoothing; Representative agent models of cash-less economies; Lucas tree; Bewley-Townsed models; Overlapping Generations models of money; Money-in-the-Utility-Function and Cash-in-Advance models; Open Economy Representative Agent Models.

Econometrics

This course covers issues in econometric modelling. Topics will include: types of data, econometric models, functional form, causality and simultaneity; the simple and general linear regression models, least square estimation; hypothesis testing; extension of the linear model, including dummy variables; generalised lease squares; measurement errors; time series issues, lags, seasonality, autocorrelation; simultaneity and identification; instrumental variables.

Mathematical and Research Methods in Economics 1

Static optimisation; Dynamic optimisation in games against nature; various methods including Lagrangeans, dynamic programming and value functions; Pontryagin; Interperson games and strategic decision-making; Numerical algorithms; Applications within macro models, macro-modelling solution and optimisation algorithms.

In the spring semester, students expand upon the areas studied in the first semester.

Spring Semester

Two compulsory modules

Advanced Microeconomics 2 (Practice)

Review of regression for cross-section data; Models of discrete outcomes; Limited dependent variable and duration models; Econometric methods for panel data.

Advanced Macroeconomics 2

(In combination with Advanced Macroeconomics 1) Rational expectations; Stabilisation policy, time inconsistency; Policy credibility; Political economy of the business cycle; Unpleasant Monetarist Arithmetic; Ricardian equivalence; Solvency; Optimal tax smoothing; Representative agent models of cash-less economies; Lucas tree; Bewley-Townsed models; Overlapping Generations models of money; Money-in-the-Utility-Function and Cash-in-Advance models; Open Economy Representative Agent Models.

Mathematical and Research Methods in Economics 2

National accounts and sources; International and national data access (ECB, OECD, IMF, NBER, Office of the President, ONS, Bank of England); USE of INFOS systems for data access; Data construction, manipulation and presentation; Evaluation and data confidence scoring; Research Project Design; Writing and presenting research papers; Project in research methods.

Following the taught component, students then complete a dissertation on a suitable economics topic.

Dissertation

Students will be required to submit a dissertation of not more than 20,000 words. This gives students a chance to explore a particular topic in depth and provides them with the opportunity to test the applicability of their new learning whilst under close supervision.

Assessment

The programme is assessed using a variety of methods, including written examinations, essays and reports, case analysis and presentation, article review, group work and problem-based reports.
Group work and discussion also provide valuable experience of working as part of a team, while presentations help to enhance communication skills. The variety in assessment methods is designed to develop a range of abilities and skills in both theoretical and practical aspects of economics??

Dissertation

The dissertation is a 20,000-word research-based study, typically comprising a review of the literature and an empirical study of an area of accounting and finance such as: auditing, accounting history, corporate governance, financial markets, financial management, financial reporting, management accounting or public sector accounting.

Residential Programme

Dissertation proposals are presented and reviewed at a residential conference at Gregynog Hall in mid Wales. This secluded university conference centre is based in a Victorian country hall in maintained grounds is an ideal location for group working and study sessions.