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Applied Microeconomics - ECO00096M

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  • Department: Economics and Related Studies
  • Module co-ordinator: Dr. Dominic Spengler
  • Credit value: 20 credits
  • Credit level: M
  • Academic year of delivery: 2023-24

Module summary

To equip students with intermediate level knowledge of the core techniques employed in applied econometric analysis so that they are able to follow the techniques and arguments used in a range of empirical papers in Economics and Finance

Module will run

Occurrence Teaching cycle
A Semester 1 2023-24

Module aims

  • to offer insights obtainable from theoretical microeconomic models;
  • to lay a foundation in micro theory that is used to study and understand other fields of economics and finance;
  • to provide an understanding of the methodological issues involved in the application of such models;
  • to interpret the results of such applications in decision-making contexts;
  • to provide a bridge between microeconomic theory and real world decision-making and policy problems;
  • to provide the underlying theory and analysis for other courses to build upon. Thus optional courses such as Applied Microeconometrics and Finance and Investment, represent opportunities to consolidate and extend on material covered in this course
  • to offer insights obtainable from game theoretical models;
  • to provide an understanding of the methodological and empirical issues involved in the application of such models;
  • to interpret the results of such applications in decision-making contexts;
  • to provide a bridge between game theory and real world decision-making and policy problems;
  • to provide the underlying theory and analysis for other courses to build upon. Thus optional courses such as Applied Microeconometrics and Finance and Investment, represent opportunities to consolidate and extend on material covered in this course.

Module learning outcomes

On completing the module a student will be able to:

  • Read and understand more of the econometric evidence published in academic journals and books. Understanding is extended beyond the second year Econometrics module by covering new topics such as: instrumental variable methods; binary choice models; forecasting using stationary ARMA models and evaluating forecast performance; nonstationary time series variables in regression; integration and cointegration (which are very important in modern applied macroeconomics), volatility modeling using GARCH models and panel data (in which there are both cross-section and time series dimensions);

  • Use standard econometric software (seminar work will involve the use of popular econometrics packages)

  • Interpret correctly the results of empirical statistical analysis as performed using contemporary econometric software.

  • Communicate, and make recommendations based on, these results in written format.

Module content

Part 1:

  • Consumer theory

  • Producer theory

  • Supply and demand

  • Market failures (monopoly, oligopoly, public goods, externalities)

  • Topics in microeconomic theory (e.g. monopsony, labour supply, etc)

Part 2:

  • Introduction & Strategic Form Games

  • Extensive Form Games

  • Imperfect Information Games

  • Incomplete Information Games

  • Adverse Selection: Signalling

  • Adverse Selection: Screening

  • Moral Hazard: Principal-Agent Models

Assessment

Task Length % of module mark
Essay/coursework
Applied Microeconomics		 N/A 25
Online Exam -less than 24hrs (Centrally scheduled)
Applied Microeconomics		 2 hours 75

Special assessment rules

None

Reassessment

Task Length % of module mark
Online Exam -less than 24hrs (Centrally scheduled)
Applied Microeconomics		 N/A 75

Module feedback

Feedback will be provided in line with University policy

Indicative reading

Varian, H. Microeconomic analysis.

Gibbons, A Primer in Game Theory, Prentice Hall, 1992

Gravelle and Rees, Microeconomics, Pearson, 2004.


The information on this page is indicative of the module that is currently on offer. The University is constantly exploring ways to enhance and improve its degree programmes and therefore reserves the right to make variations to the content and method of delivery of modules, and to discontinue modules, if such action is reasonably considered to be necessary by the University. Where appropriate, the University will notify and consult with affected students in advance about any changes that are required in line with the University's policy on the Approval of Modifications to Existing Taught Programmes of Study.