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Master Economic and Financial Research track Econometrics

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Master's Programme

Core CoursesSchool of Business and Economics

Stochastic Processes

Full course description

Deterministic dynamic systems are usually not well suited for modelling real world dynamics ineconomics, finance and business. Allowing for random components in dynamic systems leads tostochastic dynamic modelling, which is based on stochastic processes. This course covers models ofstochastic processes in discrete and continuous time. This includes Markov chains, Poissonprocesses and Brownian motion. We introduce various tools that are very useful for deriving andunderstanding the asymptotic properties of modern econometric techniques. They include thefunctional central limit theorem and stochastic integrals. Finally, we discuss stochastic differentialequations and their applications in finance and related fields, e.g. for pricing financial derivatives.

Course objectives

The purpose of the course is to introduce students to the study of stochastic processes in discreteand continuous time. Students will have learned the essentials of the subject and should be able toapply the acquired theoretical tools to problems in econometrics, economics, finance, and otherfields.

Prerequisites

Only Master students can take Econometrics Master courses. Students require a solid background inmathematical statistics and probability theory on the level of the BSc Econometrics programme.

An advanced level of English.

Recommended reading

Mikosch, T., (1998), Elementary stochastic calculus, World scientific Publishing, Singapore.Reader

EBC4004Period 12 Sep 201925 Oct 2019Print course descriptionECTS credits: 6.5Instruction language:

http://www.accept.maastrichtuniversity.nl/education/master

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EnglishCoordinator:

M.B. Eichler

Teaching methods: PBL, Assignment(s), Lecture(s)Assessment methods: Written exam, ParticipationSchool of Business and Economics

Social Choice Theory


In collective decision-making (e.g., elections) the rules and procedures used to arrive at a decisionmay have a considerable impact on the final result. Different rules may lead to different decisions. Inthis course such rules are studied. In particular, desirable properties like Pareto-optimality and non-manipulability are investigated.

Some topics are:

voting schemes for two alternatives, theorem of May;voting schemes for more than two alternatives, score rules, veto rules;Condorcet winners, dictatorial rules, anonymity, neutrality, positive association, impossibilitytheorems of Arrow, Gibbard and Satterthwaite;location problems;strategy-proof division;implementation.

Course objectives

In this course the student will learn to formally analyse collective decision rules w.r.t. variousaspects such as anonymity, Pareto-optimality, neutrality, and strategy-proofness.

Prerequisites

A mathematic level comparable to a BSc Econometrics & Operations Research meets theprerequisites.

Exchange students need to have obtained a Bachelor degree and an advanced level in mathematics.


Recommended reading

Lecture notes.

EBC4005Period 2

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28 Oct 201920 Dec 2019Print course descriptionECTS credits: 6.5Instruction language: EnglishCoordinator:

A.J.A. Storcken

Teaching methods: PBL, Lecture(s)Assessment methods: Written examSchool of Business and Economics

Econometric Methods for Cross-sectional and Panel Data


The main topics of the course are (1) unobserved effects models for panel data, (2) probit and logitmodels for discrete choice, (3) tobit and related censored regression models, (4) models dealing withsample selectivity, and (5) the estimation of average treatment effects (a.k.a. policy impactevaluation). Dynamic extensions of the models are considered when feasible. Estimation and testingmethods are applied in a number of empirical assignments and their properties are investigated.

Course objectives

Thorough understanding of the most frequently used econometric models and methods for theanalysis of panel data, categorical choice and limited dependent variables.Some practice in the application of the methods, the interpretation of the models, and theevaluation of inferences.The experience of conducting a theoretical, experimental and/or empirical investigation of themethods.

Prerequisites

Calculus, matrix algebra, probability, mathematical statistics, asymptotic theory, linearstatistical models.Familiarity with statistical software like Stata and Gauss, Matlab, or R.Econometric methods at the level of Greene (2008) or Davidson & MacKinnon (2004), ideallyas in courses Econometric Methods I (EBC2111), and Econometric Methods II (EBC2120).

The course is intended for students in the Econometrics Master programme as well as others with acomparable background and motivation. FLUENCY IN MATRIX ALGEBRA AND IN ASYMPTOTICTHEORY is necessary.


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Recommended reading

Cameron, A.C. and P.K. Trivedi (2005): Microeconometrics, Methods and Applications,Cambridge University Press 2005. ISBN 978-0521-84805-3.Wooldridge, J.M. (2010): Econometric Analysis of Cross Section and Panel Data, SecondEdition. MIT Press, Cambridge, MA, 2010, 2nd ed., ISBN 0-978-0-262-23258-6.

These references will be supplemented with a reading list of journal articles and book chapters.

EBC4006Period 43 Feb 20203 Apr 2020Print course descriptionECTS credits: 6.5Instruction language: EnglishCoordinator:

D.P.I. de Crombrugghe

Teaching methods: Presentation(s), Lecture(s), Assignment(s), Work in subgroups, Paper(s), Research, SkillsAssessment methods: Final paper, Participation, Written exam, PresentationSchool of Business and Economics

Industrial Economics


Every week of this course consists of one theory lecture and one exercise session. During theexercise session we will discuss some exercises about the theory of that week. These exercisesessions will be highly interactive, as students will be asked to explain an exercise, or a part of it, totheir fellow students on the whiteboard.

Some topics that we will discuss are: Static and dynamic models of quantity and price competition,horizontal and vertical product differentiation, price discrimination, asymmetric information,signaling by prices and advertising, cartels, and models of strategic entry.

Course objectives

The aim of this course is to guide the students through some of the most important models inIndustrial Economics. In this area we investigate the behavior of firms, both in monopolistic andoligopolistic markets. In oligopolistic markets we study small numbers of firms that compete witheach other by choosing quantities, prices, product characteristics, or marketing strategies. We oftenuse game theory to investigate such competition models. This is natural since in these settings firmsmust reason about the decisions of other firms before deciding about their own strategy. Hence,such competition models can be seen as games between firms. In this course we will not onlyanalyze the various models game theoretically, but will also discuss the findings in these models

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from an intuitive economic point of view. A good conceptual understanding and economic intuition isconsidered very important.

Prerequisites

A good understanding of micro economics, and a basic knowledge of game theory.

Recommended reading

"Industrial Organization: Markets and Strategies" by Paul Belleflamme and Martin Peitz,Cambridge University Press, Cambridge, 2015 (second edition).

EBC4007Period 43 Feb 20203 Apr 2020Print course descriptionECTS credits: 6.5Instruction language: EnglishCoordinators:

A. Perea y MonsuwéC.J. Woolnough


Time Series Methods and Dynamic Econometrics


The emphasis of this course will be on studying in depth methods and techniques for the analysis of(nonstationary) economic and financial time series. We will cover and discuss issues related to:- dynamic econometric modelling- modelling nonstationary processes- asymptotic theory for dependent and integrated processes- unit roots (representation, tests, properties), cointegration and VECMs.Empirical applications as well as simulation experiments will also be considered to provide studentswith practical experience in analyzing economic and business time series.

Course objectives

The objectives of this course are :- to provide students with an understanding/intuition of the concepts of modern time series methods

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that are used in econometrics.- introduce the student to fundamental methodological issues in dynamic econometric modelling(nonstationarity, nonstandard asymptotic theory).- to provide students with some experience in analyzing univariate and multivariate time series fromeconomics or business.

Prerequisites

Econometric methods (EBC2111), Stochastic Processes (EBC4004).

Exchange students need to have a solid background in econometric methods, probability theory,mathematical statistics, and some knowledge in stochastic processes (some familiarity withBrownian Motion theory is important). Exchange students need to have obtained a Bachelor degreeand an advanced level in mathematics and probability and statistics.


Recommended reading

The main textbook used in this course will be:- Hamilton, J.D. (1994), Time Series Analysis, Princeton University Press, Princeton.You might also want to consult the following book:- Davidson J. (2000), Econometric Theory, Blackwell Publishing, Oxford.The first book is mathematically very concise, while the second book is more narrative of nature.Students often perceive the two books as complementary.

EBC4008Period 228 Oct 201920 Dec 2019Print course descriptionECTS credits: 6.5Instruction language: EnglishCoordinator:

I. Wilms

Teaching methods: PBL, Presentation(s), Lecture(s), Work in subgroupsAssessment methods: Written exam, Participation, Final paperSchool of Business and Economics

Equilibrium Theory and Financial Markets


After introducing the necessary mathematical preliminaries and extending our knowledge on

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selected ingredients from consumer theory, the course focuses on general equilibrium models withcomplete markets, in particular classical exchange and production economies. Central concepts tobe studied are the competitive equilibrium and the core. Next, the model is extended to include timeand uncertainty, and the strong assumption of complete markets is relaxed. This makes it possible toincorporate financial markets in a satisfactory way. We study the relationships between equilibriumand arbitrage opportunities, and the valuation of financial securities. The well-known CAPM is aspecial case of the model studied. A rigorous derivation of the CAPM is provided.

Course objectives

Learn about the notion of competition in a setting with many households, firms, andcommodities.Understand the notions of competitive equilibrium, the first and second fundamental welfaretheorem, and the core.Understand the role of financial markets in reshuffling income across time and states of theworld.Learn about the consequences of market incompleteness.Understand the Capital Asset Pricing Model.

Prerequisites

Intermediate microeconomics course, e.g. Microeconomics, or Information, Markets andOrganisation. Exchange students need to have obtained a Bachelor degree with a major inEconomics or Econometrics and have an advanced level in mathematics.


Recommended reading

Reny and Jehle, Advanced Microeconomic Theory, Addison-Wesley, 1998 - LeRoy and Werner,Principles of Financial Economics, Cambridge University press, 2001

EBC4009Period 56 Apr 20205 Jun 2020Print course descriptionECTS credits: 6.5Instruction language: EnglishCoordinator:

A. Predtetchinski

Teaching methods: PBL, Assignment(s)Assessment methods: Written examSchool of Business and Economics

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Empirical Analysis of Financial Markets


In this course we consider in depth the fluctuations of stock prices. The purpose of the course is toprovide you with an overview of recent empirical research in asset pricing and portfoliomanagement. How are theoretical models of asset pricing being tested in practice? What are thestrengths and weaknesses of various methodologies? What kind of statistical techniques are used?

Statistical methods in empirical asset pricing have evolved into a separate field called financialeconometrics. These techniques are specifically designed to answer typical questions in finance.Examples are models of risk that look at how risk is measured, how it evolves over time, and howrisks in different stocks are related. It also considers probabilities of crashes, bankruptcies anddefaults, and statstical tests for the performance of trading strategies.

A more recent development are prediction models that build on insights from machine learning andadvances in big data methodologies. These techniques seem to uncover new patterns in stock prices.From an investment perspective it is is important to assess whether such new facts will remain orwill be arbtiraged away as sson as large investors start trading to exploit these patterns.In the course we will review and discuss interpretations of new techniques and empirical findings.

A second aim of the course is to let you gain some experience in doing empirical research. Animportant aspect of the course is learning about the characteristics of stock returns by doing a smallresearch project. The research projects are concerned with predictability of stock returns and theprofitability of various trading strategies based on (seeming) anomalies. At the end of the course youshould be able to make your own assessment about events on financial markets. Are reportedsuperior returns pure chance, statistical illusion, a reward for risk or really an anomaly?

Course objectives

The purpose of the course is to provide students with an overview of empirical methods and stylisedfacts that will enable them to make their own assessment of events on financial markets.

Prerequisites

Knowledge of basics of asset pricing and portfolio management, and linear regression models.Exchange students need to have obtained a Bachelor degree in economics or businessadministration, and sufficient quantitative background. Exchange students need to major in financein their master.


Recommended reading

recent research papersrecent journal articles

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6 Apr 20205 Jun 2020Print course descriptionECTS credits: 6.5Instruction language: EnglishCoordinator:

P.C. Schotman

Teaching methods: PBL, Presentation(s), Lecture(s), Assignment(s), Work in subgroupsAssessment methods: Final paper, Participation, Written examSchool of Business and Economics

Game Theory and Optimisation


Topics in optimization include duality theorems in LP, branch and bound and cutting planealgorithms in IP, and Kuhn-Tucker conditions for NLP.

Topics in game theory and economics include computation of Nash equilibrium and refinements andmechanism design.

Course objectives

This course provides a comprehensive overview of optimization techniques such as linear andinteger programming, and non-linear programming, with applications in game theory andeconomics. Students learn optimization techniques from mathematics and operations research, andhow to apply them in models from game theory and economic theory.

Prerequisites

Only Master students can take this course. Exchange students need to have obtained a BSc degreein Economics, International Business, Econometrics, or a related topic. Familiarity with the basicconcepts of optimization and linear programming will be helpful. A solid basis in mathematics andcalculus is also recommendable.

Recommended reading

The course will be based on chapters from standard textbooks plus additional readers.

Recommended literature for background reading :

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Hans Peters : Game Theory : A Multi-Leveled Approach. Springer-Verlag.Stephen Boyd and Lieven Vandenberghe : Convex Optimization. Cambridge University Press.Roger Myerson : Game Theory : Analaysis of Conflict. Harvard University Press.L.J. Vanderbei : Linear Programming - Foundations and Extensions. 4th Edition, Springer.Jorge Nocedal and Stephen J. Wright : Numerical Optimization. 2nd Edition, Springer.

EBC4188Period 12 Sep 201925 Oct 2019Print course descriptionECTS credits: 6.5Coordinators:

A.J. VermeulenM. Staudigl

Teaching methods: PBL, Lecture(s)Assessment methods: Written exam

Economic and Financial Research SkillsSchool of Business and Economics

Presentation Skills


Giving formal presentations in English need not be painful, although it will inevitably be not withoutits challenges. Our aim is to try to minimise any perceived difficulties and to offer you the chance topractice your topic-specific and general language, give a presentation in a controlled and monitoredenvironment, and to give feedback where it is helpful to do so.The course covers the wide range of issues that need to be considered when conducting orpreparing to give presentations in English in a multilingual and multicultural environment. It focuseson your delivery skills and, in addition, it covers vocabulary and expressions that are valuable ineffective formal communication.You will be required to deliver three prepared oral presentation during the course and also to delivera poster presentation to a real audience.

Course objectives

The objectives of this skills training are as follows:

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To increase your awareness of the range of issues that needs to be considered when preparing1.and delivering a presentation for a multilingual and multicultural audience.To give you some practice at delivering a formal presentation in English, using your fellow2.participants as the audience.To give you specific feedback on the structure of your presentation, your delivery skills, vocal3.and verbal performance, body language, and use of visuals.To make you aware of the criteria against which you will be viewed and assessed by your4.audience in a real, live situation.To make you aware of how to prepare and deliver a poster presentation, and to practise5.delivering it to a real audience and field relevant questions.

After this training, do not expect perfection immediately – it is normal to have to check words andexpressions and to ask for advice. You should be able to give constructive advice to your peers, andto recognize what your strong points are and where you need to improve.

Prerequisites

Requirements enrolment:Only for RM students and PhD students!!!

Recommended reading

There is no literature required for this skill.

EBS4021Period 36 Jan 202031 Jan 2020Print course descriptionECTS credits: 4.0Instruction language: EnglishCoordinator:

A.M. Bos

Teaching methods: PBL, Presentation(s), Assignment(s)Assessment methods: Attendance, Participation, Oral examSchool of Business and Economics

Topics in Computational Econometrics


The students use a statistical and matrix programming language (Gauss or R for example) softwareto implement computationally intensive econometric techniques. The focus will be on programming

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and using advanced techniques not readily available in standard statistical or optimisation packages.These techniques may for example include simulation based methods (bootstrap, Monte Carlo,indirect inference.).

Course objectives

Students will work with an advanced statistical and matrix programming language in order to solveadvanced problems in econometrics.

Prerequisites

Courses from periods 1 and 2 from the Master in Econometrics.Restricted to econometrics students or students from the MSc. Research master programs.

Recommended reading

A selection of (survey) articles on the specific econometric techniques used and manuals on thestatistical software used (all will be distributed via the course website).


S.J.M. Smeekes

Teaching methods: Lecture(s), Assignment(s), Work in subgroupsAssessment methods: Final paperSchool of Business and Economics

Operations Research Software


During this course, we introduce discrete event simulation. The students need to implement adiscrete event simulation tool for a practical problem and be able to analyse the outcome of thesimulations.

Course objectives

After this skill, the student knows what discrete event simulation is and can implement it in a

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programming language.

Prerequisites

Basic knowledge of Operations Research and Combinatorial Optimisation, programming skills.An advanced level of English.

Recommended reading

Textbook on simulation; scientific articles.


T. Vredeveld - van der Schaft

Teaching methods: Work in subgroups, Assignment(s), Lecture(s), Presentation(s)Assessment methods: Final paper, PresentationSchool of Business and Economics

Data Analysis Skills


Dependent variables rarely cover the full line of real numbers. Although the assumption of anunconstrained continuous dependent variable may be relatively harmless in quite some cases, manysituations require a different approach. For example, when a consumer purchases packaged goods,he or she only buys an integer, nonnegative number of units. In surveys, Likert or semantic scalesnot only discretize but also limit a person’s true response, in that they impose minimum andmaximum values. Finally, 0/1 phenomena by definition demand techniques that recognize the binary,nominal nature of the data. Ignoring the true characteristics of your data may lead to inefficient andinconsistent estimates and may generate nonsensical predictions. This skills training thereforeintroduces students to: * different types of limited and/or nonmetric dependent variables and theinherent dangers of ignoring the data’s real nature; * models that take into account the peculiaritiesof the data; and * a particularly popular estimation technique that is flexible enough to estimate allstudied models, namely Maximum Likelihood Estimation (MLE). On the basis of structuredassignments with realistic data, we will conduct econometric analyses in the open-sourceprogramming environment R.

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Course objectives

In terms of the so-called Assurance of Learning standards, this course pursues the following learningobjectives: * Knowledge acquisition: students will acquire knowledge of statistical methods andeconometric models that are relevant when dealing with limited or nonmetric dependent variables. *Knowledge application and judgement: in four assignments, students will learn to use and extendtheir knowledge on the basis of realistic cases and datasets. * Research skills: the acquiredknowledge involves (the application of) econometric techniques and thus directly contributes tostudents’ research skills. * Communication and professional attitude: to realize the above learningobjectives, interaction, feedback, and teamwork will be key. As a result, students will also sharpentheir communication skills and improve their professional attitude.

Prerequisites

* Experience with a statistical package like SPSS * First experience with R (if not, preparatoryassignment will be provided) * Knowledge of multiple regression analysis and Ordinary LeastSquares * Knowledge of elementary and matrix algebra (if not, preparatory assignment will beprovided) * Knowledge of basic calculus

Recommended reading

Selected chapters from textbooks, course slides, block bookEBS4001Period 36 Jan 202031 Jan 2020Print course descriptionECTS credits: 4.0Instruction language: EnglishCoordinator:

B.P.J. Foubert

Teaching methods: PBL, Presentation(s), Lecture(s), Assignment(s)Assessment methods: Attendance, ParticipationSchool of Business and Economics

Writing a Referee Report


There is one opening lecture in which tips and tricks are provided. Next, students write a refereereport for a chosen paper. Finally, students read each others’ reports and discuss on them in aclosing session, where also the lecturer provides his/her feedback on the reports.

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Course objectives

Scientific researchers are supposed to contribute to the peer reviewing process of scientific journals.The skill of writing a good referee report is a competence to be acquired in becoming a completescientist. In this course, students are trained in a practical way in the writing of a report.

Prerequisites

This skill is only available to research master students who are missing 2 ECTS or less in their studyplan in order to graduate. Small ECTS deficits arise if students have taken courses outside UM withdifferent ECTS per course.

Recommended reading

Links to articles with tips for writing referee reports will be made available on the course website.

EBS4024Period 68 Jun 20203 Jul 2020Print course descriptionECTS credits: 4.0Coordinator:

S.J.M. Smeekes

Teaching methods: PBL, Lecture(s), Assignment(s)Assessment methods: Final paperSchool of Business and Economics

Experimental Economics Methods


This course will cover the theoretical and methodological background, as well as practical issues ofexperimental work in economics and finance. The course will discuss methodological issues in thedomain of economics experiments, internal validity, external validity, the role of experiments intheory testing and theory suggesting. It will also critically discuss norms and customs inexperimental economics research, as well as the use of task related incentives and the no-deceptionparadigm. On the practical side the course will deal with the questions of: What makes anexperimental design good or bad? What are the different degrees of independent observations?What are efficient dialogues with the data? Part of the course will be devoted to practical designissues and students will develop their own experiments as part of a final paper. Time will also bedevoted to research ethics.

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Course objectives

Knowledge of:Theory of experimental economics, controlled economic environments, induced value theory,internal validity, external validity, domain of experimental economics, methodological foundations ofexperimental design, paradigm of no deception, direct experimental control, between-subject design,within-subject design, indirect experimental control (randomisation), preference elicitation methods,selected topics from experimental economics, human-subjects research ethics.

Prerequisites

Research master’s students only; Microeconomics at a research master’s level (e.g. EBC4061Microeconomics I and EBC4204 Microeconomics II).

Recommended reading

There is no one textbook that will cover the course. The literature will consist of a wide variety ofreadings including chapters from textbooks aimed at advanced graduates and contemporaryresearch articles.

EBS4026Period 68 Jun 20203 Jul 2020Print course descriptionECTS credits: 4.0Coordinator:

M. Wibral

Teaching methods: PBL, Work in subgroups, Assignment(s), Lecture(s)Assessment methods: Participation, Attendance, Final paperSchool of Business and Economics

World of Research


For the first goal, students will participate in a course organized by the Language Centre (June –skills period). In this course, students will write their own text, review literature, improve texts,practice advanced grammar and learn to identify typical features in published articles.For the second goal, students are required to participate in several research seminars of theirchoice. A wide range of seminars is offered.

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Course objectives

The aim of the World of Research skill is two-fold.1. Students improve their academic writing skills.2. Students get deeper insight into the research frontier in different disciplines.

EBS4032Year1 Sep 201931 Aug 2020Print course descriptionECTS credits: 4.0Instruction language: EnglishCoordinator:

M. Strobel

Teaching methods: Lecture(s)Assessment methods: Participation

Elective CoursesSchool of Business and Economics

Stochastic Processes


Deterministic dynamic systems are usually not well suited for modelling real world dynamics ineconomics, finance and business. Allowing for random components in dynamic systems leads tostochastic dynamic modelling, which is based on stochastic processes. This course covers models ofstochastic processes in discrete and continuous time. This includes Markov chains, Poissonprocesses and Brownian motion. We introduce various tools that are very useful for deriving andunderstanding the asymptotic properties of modern econometric techniques. They include thefunctional central limit theorem and stochastic integrals. Finally, we discuss stochastic differentialequations and their applications in finance and related fields, e.g. for pricing financial derivatives.

Course objectives

The purpose of the course is to introduce students to the study of stochastic processes in discreteand continuous time. Students will have learned the essentials of the subject and should be able toapply the acquired theoretical tools to problems in econometrics, economics, finance, and otherfields.

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Prerequisites

Only Master students can take Econometrics Master courses. Students require a solid background inmathematical statistics and probability theory on the level of the BSc Econometrics programme.


Recommended reading

Mikosch, T., (1998), Elementary stochastic calculus, World scientific Publishing, Singapore.Reader

EBC4004Period 12 Sep 201925 Oct 2019Print course descriptionECTS credits: 6.5Instruction language: EnglishCoordinator:

M.B. Eichler

Teaching methods: PBL, Assignment(s), Lecture(s)Assessment methods: Written exam, ParticipationSchool of Business and Economics

Social Choice Theory


In collective decision-making (e.g., elections) the rules and procedures used to arrive at a decisionmay have a considerable impact on the final result. Different rules may lead to different decisions. Inthis course such rules are studied. In particular, desirable properties like Pareto-optimality and non-manipulability are investigated.

Some topics are:

voting schemes for two alternatives, theorem of May;voting schemes for more than two alternatives, score rules, veto rules;Condorcet winners, dictatorial rules, anonymity, neutrality, positive association, impossibilitytheorems of Arrow, Gibbard and Satterthwaite;location problems;strategy-proof division;implementation.

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Course objectives

In this course the student will learn to formally analyse collective decision rules w.r.t. variousaspects such as anonymity, Pareto-optimality, neutrality, and strategy-proofness.

Prerequisites

A mathematic level comparable to a BSc Econometrics & Operations Research meets theprerequisites.

Exchange students need to have obtained a Bachelor degree and an advanced level in mathematics.


Recommended reading

Lecture notes.


A.J.A. Storcken


Econometric Methods for Cross-sectional and Panel Data


The main topics of the course are (1) unobserved effects models for panel data, (2) probit and logitmodels for discrete choice, (3) tobit and related censored regression models, (4) models dealing withsample selectivity, and (5) the estimation of average treatment effects (a.k.a. policy impactevaluation). Dynamic extensions of the models are considered when feasible. Estimation and testingmethods are applied in a number of empirical assignments and their properties are investigated.

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Course objectives

Thorough understanding of the most frequently used econometric models and methods for theanalysis of panel data, categorical choice and limited dependent variables.Some practice in the application of the methods, the interpretation of the models, and theevaluation of inferences.The experience of conducting a theoretical, experimental and/or empirical investigation of themethods.

Prerequisites

Calculus, matrix algebra, probability, mathematical statistics, asymptotic theory, linearstatistical models.Familiarity with statistical software like Stata and Gauss, Matlab, or R.Econometric methods at the level of Greene (2008) or Davidson & MacKinnon (2004), ideallyas in courses Econometric Methods I (EBC2111), and Econometric Methods II (EBC2120).

The course is intended for students in the Econometrics Master programme as well as others with acomparable background and motivation. FLUENCY IN MATRIX ALGEBRA AND IN ASYMPTOTICTHEORY is necessary.


Recommended reading

Cameron, A.C. and P.K. Trivedi (2005): Microeconometrics, Methods and Applications,Cambridge University Press 2005. ISBN 978-0521-84805-3.Wooldridge, J.M. (2010): Econometric Analysis of Cross Section and Panel Data, SecondEdition. MIT Press, Cambridge, MA, 2010, 2nd ed., ISBN 0-978-0-262-23258-6.

These references will be supplemented with a reading list of journal articles and book chapters.


D.P.I. de Crombrugghe

Teaching methods: Presentation(s), Lecture(s), Assignment(s), Work in subgroups, Paper(s), Research, SkillsAssessment methods: Final paper, Participation, Written exam, PresentationSchool of Business and Economics

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Industrial Economics


Every week of this course consists of one theory lecture and one exercise session. During theexercise session we will discuss some exercises about the theory of that week. These exercisesessions will be highly interactive, as students will be asked to explain an exercise, or a part of it, totheir fellow students on the whiteboard.

Some topics that we will discuss are: Static and dynamic models of quantity and price competition,horizontal and vertical product differentiation, price discrimination, asymmetric information,signaling by prices and advertising, cartels, and models of strategic entry.

Course objectives

The aim of this course is to guide the students through some of the most important models inIndustrial Economics. In this area we investigate the behavior of firms, both in monopolistic andoligopolistic markets. In oligopolistic markets we study small numbers of firms that compete witheach other by choosing quantities, prices, product characteristics, or marketing strategies. We oftenuse game theory to investigate such competition models. This is natural since in these settings firmsmust reason about the decisions of other firms before deciding about their own strategy. Hence,such competition models can be seen as games between firms. In this course we will not onlyanalyze the various models game theoretically, but will also discuss the findings in these modelsfrom an intuitive economic point of view. A good conceptual understanding and economic intuition isconsidered very important.

Prerequisites

A good understanding of micro economics, and a basic knowledge of game theory.

Recommended reading

"Industrial Organization: Markets and Strategies" by Paul Belleflamme and Martin Peitz,Cambridge University Press, Cambridge, 2015 (second edition).

EBC4007Period 43 Feb 20203 Apr 2020Print course descriptionECTS credits: 6.5Instruction language: EnglishCoordinators:

A. Perea y MonsuwéC.J. Woolnough

http://www.accept.maastrichtuniversity.nl/meta/367104/industrial-economics?print=1

http://www.accept.maastrichtuniversity.nl/a.perea

http://www.accept.maastrichtuniversity.nl/c.woolnough


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Time Series Methods and Dynamic Econometrics


The emphasis of this course will be on studying in depth methods and techniques for the analysis of(nonstationary) economic and financial time series. We will cover and discuss issues related to:- dynamic econometric modelling- modelling nonstationary processes- asymptotic theory for dependent and integrated processes- unit roots (representation, tests, properties), cointegration and VECMs.Empirical applications as well as simulation experiments will also be considered to provide studentswith practical experience in analyzing economic and business time series.

Course objectives

The objectives of this course are :- to provide students with an understanding/intuition of the concepts of modern time series methodsthat are used in econometrics.- introduce the student to fundamental methodological issues in dynamic econometric modelling(nonstationarity, nonstandard asymptotic theory).- to provide students with some experience in analyzing univariate and multivariate time series fromeconomics or business.

Prerequisites

Econometric methods (EBC2111), Stochastic Processes (EBC4004).

Exchange students need to have a solid background in econometric methods, probability theory,mathematical statistics, and some knowledge in stochastic processes (some familiarity withBrownian Motion theory is important). Exchange students need to have obtained a Bachelor degreeand an advanced level in mathematics and probability and statistics.


Recommended reading

The main textbook used in this course will be:- Hamilton, J.D. (1994), Time Series Analysis, Princeton University Press, Princeton.You might also want to consult the following book:- Davidson J. (2000), Econometric Theory, Blackwell Publishing, Oxford.The first book is mathematically very concise, while the second book is more narrative of nature.Students often perceive the two books as complementary.


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I. Wilms

Teaching methods: PBL, Presentation(s), Lecture(s), Work in subgroupsAssessment methods: Written exam, Participation, Final paperSchool of Business and Economics

Equilibrium Theory and Financial Markets


After introducing the necessary mathematical preliminaries and extending our knowledge onselected ingredients from consumer theory, the course focuses on general equilibrium models withcomplete markets, in particular classical exchange and production economies. Central concepts tobe studied are the competitive equilibrium and the core. Next, the model is extended to include timeand uncertainty, and the strong assumption of complete markets is relaxed. This makes it possible toincorporate financial markets in a satisfactory way. We study the relationships between equilibriumand arbitrage opportunities, and the valuation of financial securities. The well-known CAPM is aspecial case of the model studied. A rigorous derivation of the CAPM is provided.

Course objectives

Learn about the notion of competition in a setting with many households, firms, andcommodities.Understand the notions of competitive equilibrium, the first and second fundamental welfaretheorem, and the core.Understand the role of financial markets in reshuffling income across time and states of theworld.Learn about the consequences of market incompleteness.Understand the Capital Asset Pricing Model.

Prerequisites

Intermediate microeconomics course, e.g. Microeconomics, or Information, Markets andOrganisation. Exchange students need to have obtained a Bachelor degree with a major inEconomics or Econometrics and have an advanced level in mathematics.


http://www.accept.maastrichtuniversity.nl/meta/367838/time-series-methods-and-dynamic-econometrics?print=1

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Recommended reading

Reny and Jehle, Advanced Microeconomic Theory, Addison-Wesley, 1998 - LeRoy and Werner,Principles of Financial Economics, Cambridge University press, 2001


A. Predtetchinski


Empirical Analysis of Financial Markets


In this course we consider in depth the fluctuations of stock prices. The purpose of the course is toprovide you with an overview of recent empirical research in asset pricing and portfoliomanagement. How are theoretical models of asset pricing being tested in practice? What are thestrengths and weaknesses of various methodologies? What kind of statistical techniques are used?

Statistical methods in empirical asset pricing have evolved into a separate field called financialeconometrics. These techniques are specifically designed to answer typical questions in finance.Examples are models of risk that look at how risk is measured, how it evolves over time, and howrisks in different stocks are related. It also considers probabilities of crashes, bankruptcies anddefaults, and statstical tests for the performance of trading strategies.

A more recent development are prediction models that build on insights from machine learning andadvances in big data methodologies. These techniques seem to uncover new patterns in stock prices.From an investment perspective it is is important to assess whether such new facts will remain orwill be arbtiraged away as sson as large investors start trading to exploit these patterns.In the course we will review and discuss interpretations of new techniques and empirical findings.

A second aim of the course is to let you gain some experience in doing empirical research. Animportant aspect of the course is learning about the characteristics of stock returns by doing a smallresearch project. The research projects are concerned with predictability of stock returns and theprofitability of various trading strategies based on (seeming) anomalies. At the end of the course youshould be able to make your own assessment about events on financial markets. Are reportedsuperior returns pure chance, statistical illusion, a reward for risk or really an anomaly?

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Course objectives

The purpose of the course is to provide students with an overview of empirical methods and stylisedfacts that will enable them to make their own assessment of events on financial markets.

Prerequisites

Knowledge of basics of asset pricing and portfolio management, and linear regression models.Exchange students need to have obtained a Bachelor degree in economics or businessadministration, and sufficient quantitative background. Exchange students need to major in financein their master.


Recommended reading

recent research papersrecent journal articles


P.C. Schotman

Teaching methods: PBL, Presentation(s), Lecture(s), Assignment(s), Work in subgroupsAssessment methods: Final paper, Participation, Written examSchool of Business and Economics

Capita Selecta Quantitative Economics: Econometrics,Mathematical Economics and Operations Research


This course does not have a fixed content, block period, or teacher. Instead, its code can be used forspecial topics that are not offered within the regular offering of the master program Econometricsand Operations Research of the SBE. The initiative can be taken jointly by a teacher (member of theDepartment of Quantitative Economics) and a group of students.

Students who participate in this course have to register for it in period 5, even if the course has beengiven in an earlier period of the same academic year.

http://www.accept.maastrichtuniversity.nl/meta/370974/empirical-analysis-financial-markets?print=1

http://www.accept.maastrichtuniversity.nl/p.schotman


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Course objectives

See the Course Contents

Prerequisites

Only (Research) Master students and PhD students can take this course.

The general level is the level of the master program Econometrics and Operations Research.


A.J. Vermeulen

Teaching methods: PBL, Lecture(s), Assignment(s)Assessment methods: Participation, Written examSchool of Business and Economics

Risk Management


The course is built around three important topics: first, it is important to identify financial risks andto measure them. Important topics, such as value-at-risk, volatility, correlation and copulas, as wellas credit risk loss measurement will be addressed. The increased notion of concentration risk,warrant a proper discussion of alternative ways to model/measure co-movements (through copulas),as well as provide alternative ways to represent the variability in a financial variable (this includesalternative volatility models, such as GARCH models).

Second, this course focuses on understanding alternative approaches to manage risk. This includesthe usage of derivative securities such as options and futures. It is a fact that derivatives' marketsare skyrocketing, and it is becoming increasingly common for non-financial corporations to makeheavy use of financial derivatives. Indeed, internationally, over 60% of non-financial corporations arereported using derivatives. As of December 2007, the total notional value of over-the-counterderivatives was $596 trillion, a 200% increase over its value in December 2005. Financial riskmanagement is reported to be the main reason for the use of financial derivatives by non-financialinstitutions.

Third, this course will focus on regulatory developments for banks under Basel II. Basel II has setnew capital requirements standards for credit risk, operational risk and market risk. We will review

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the Basel II three pillar model and will discuss the three risk types mentioned above in detail as well.

Course objectives

Understand the different dimensions of risk in banks, learns how to measure market-, credit-,liquidity- and operational risk.Understand the concepts of regulatory- and economic capital in a Basel II context and how tointegrate these in a firm wide framework for performance measurement.

After completion of the course, participants should be able to measure alternative risk types, be ableto carry out capital requirements, and determine risk mitigating strategies such as hedging andportfolio selection.

Prerequisites

Exchange students need to have obtained a Bachelor degree in economics or businessadministration. Exchange students need to major in finance in their master.


Recommended reading

Risk Management and Financial Institutions, 3rd edition, John C. Hull, Pearson Prentice Hall,ISBN: 978-1-118-26903-9.

Additional literature may be available through Eleum.

Data and programs for assignments will be available through Eleum.


W.F.M. Bams

Teaching methods: PBL, Presentation(s), Lecture(s), Assignment(s), Work in subgroupsAssessment methods: Written examSchool of Business and Economics

http://www.accept.maastrichtuniversity.nl/meta/366324/risk-management?print=1

http://www.accept.maastrichtuniversity.nl/w.bams


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Microeconomics I


The course provides an exposition of key elements of modern microeconomic theory at an advancedlevel. Topics include consumer theory and general equilibrium theory. Note that this is a researchmaster course. We treat the material rigorously, and a substantial amount of time will be spent onmathematical proofs.

Examination method: Assessment method depends on number of participants.

Course objectives

Students learn to apply mathematical tools to model economic problems, to develop the theoreticalframework of microeconomics and to prove its results.

Prerequisites

Mathematical Research Tools (EBC4182) or knowledge equivalent to the mathematical appendix ofJehle and Reny (2011).

Recommended reading

Main text: Jehle GA and PJ Reny (2011), Advanced Microeconomic Theory.Recommended text: Mas-Colell A, MD Whinston and JR Green (1995), Microeconomic Theory.


A. Predtetchinski

Teaching methods: Lecture(s), Assignment(s), Work in subgroupsAssessment methods: Oral exam, Written examSchool of Business and Economics

http://www.accept.maastrichtuniversity.nl/meta/370908/microeconomics-i?print=1



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Macroeconomics II


The main goal of this course is to apply the concepts analysed in "Macroeconomics". While theclassic literature from twenty and thirty years ago can be admired for articulating and attempting toformalize a number of central policy issues, its limitations are many. The classic approach lacks themicro foundations needed for internal consistency, it fails to deal with dynamics in any coherentway, and its vision of capital market integration may generously be described as narrow. Perhapsmost importantly, the older literature simply doesn’t deal sensibly with many questions that arecentral to today’s policy world, such as current accounts, government budget deficits, speculativeattacks, and the implications of the expanding global markets for securities and derivatives. Alimited number of problems in international finances will be investigated within a systematic modernapproach. New approaches will be also developed as well as new methodologies to investigate thenew topics in international finance.

Course objectives

This course is an advanced macroeconomic course. The students are expected to apply the modelslearnt in Macroeconomics in order to write a publishable empirical paper in internationalmacroeconomics and finance.

Prerequisites

Macroeconomics I

Recommended reading

Obstfeld, Maurice & Kenneth Rogoff, Foundations of International Macroeconomics,Cambridge, MA: The MIT Press, 1996.


L.M. Lieb

Teaching methods: Presentation(s), PBL, Paper(s)Assessment methods: Participation, Written examSchool of Business and Economics

http://www.accept.maastrichtuniversity.nl/meta/367820/macroeconomics-ii?print=1

http://www.accept.maastrichtuniversity.nl/l.lieb


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Macroeconomics I


The goals of this course is to develop a broad coherent framework for thinking about all of thefundamental problems in international macroeconomics. While the classic literature from twenty andthirty years ago can be admired for articulating and attempting to formalize a number of centralpolicy issues, its limitations are many. The classic approach lacks the microfoundations needed forinternal consistency, it fails to deal with dynamics in any coherent way, and its vision of capitalmarket integration may generously be described as narrow. Perhaps most importantly, the olderliterature simply doesn’t deal sensibly with many questions that are central to today’s policy world,such as current accounts, government budget deficits, speculative attacks, and the implications ofthe expanding global markets for securities and derivatives.

Our goal in this course is to show that one can address virtually all the core issues in internationalfinance within a systematic modern approach that pays attention to the nuances of microfoundationswithout squeezing all life out of this fascinating topic, following the advanced textbook of Obstfeld &Rogoff, from which the above text is also taken.

Course objectives

This course is an advanced macroeconomic course. The students are expected to be able to deriveand understand the most up-to-date models in international macroeconomics and internationalfinance.

Prerequisites

Bachelor International Economic Studies

Recommended reading

Obstfeld, Maurice & Kenneth Rogoff, “Foundations of International Macroeconomics”, Cambridge,MA: The MIT Press, 1996.


L.M. Lieb

Teaching methods: PBL, Presentation(s)

http://www.accept.maastrichtuniversity.nl/meta/370732/macroeconomics-i?print=1



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Assessment methods: Participation, Written examSchool of Business and Economics

Workshops in Finance


These goals will be attained through the attendance of a full academic year of a special seminarseries in Financial Economics organised by the Finance Department, and in which senior of thedepartment will participate.

Course objectives

The workshops in Finance have two purposes.

The first is to give Research master students a broad insight into current research in FinancialEconomics through a regular seminar series.

The second purpose is to provide Research master students with the skills needed in today’sscientific environment, such as presenting one’s research to a group of scientific peers andconstructively discussing research papers.

Prerequisites

Only for Research Master students.

Recommended reading

W Thomson (2001) A guide for the young economist, MIT press.

Research papers of the finance department and to be discussed by the participants.


P.J. Mauricio Rodrigues

Teaching methods: Presentation(s), Lecture(s)Assessment methods: Attendance, Participation

http://www.accept.maastrichtuniversity.nl/meta/369698/workshops-finance?print=1

http://www.accept.maastrichtuniversity.nl/p.rodrigues


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School of Business and Economics

Technology, Networks and the New Economy


The course examines theoretical and empirical research on the economics of networks, particularlyas applied to technology and innovation. Recent research in economics and business has addressedthe fact that almost all economic agents interact directly with only a few other agents and that thisset of agents changes only slowly over time. When this is the case, a network model is more relevantin capturing the nature of economic interaction than is a pure market model. This is the basicpremise of this course. We start by introducing concepts of social network analysis, as this is theanalytical basis for research on networks. With these definitions, and technical definitions of thestatistics used to describe network structures, we move to a deeper analysis. Part of the goal is todescribe existing, relevant economic networks; part of the goal is to understand how networks formand evolve; part of the goal is to understand how an agent’s position in a network influence theagent’s performance; part of the goal is to understand how different networks perform in aggregate,in achieving some social goal. Empirically, there is a heavy focus on strategic alliance networks(which makes this course of interests to business students as well as economists). Two importantempirical question involve how links within a network form and dissolve; and how a firm’s position inthe network affects is performance. Theoretically, we use both game theory and numericalsimulation tools. The basic questions here have to do with issues of stability (a network is acollection of bilateral links; a stable network is one in which agents have no incentives to make new,or break existing links) and efficiency (given a social welfare function, some network structures mayperform better than others).

Course objectives

The purpose of this course is to understand the interaction between network structures, knowledgecreation and diffusion, and economic performance at various levels of aggregation.

Prerequisites

Intermediate microeconomics. An intermediate level of economics is recommended. Exchangestudents should have an intermediate or advanced level of micro economics.

Recommended reading

We make use of recent journal articles.

EBC4142Period 228 Oct 201920 Dec 2019Print course descriptionECTS credits: 6.5Instruction language:

http://www.accept.maastrichtuniversity.nl/meta/368554/technology-networks-and-new-economy?print=1


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EnglishCoordinator:

R. Cowan

Teaching methods: PBL, Paper(s)Assessment methods: Final paperSchool of Business and Economics

Technology and Productivity Growth


Growth in income per head arises out of the accumulation of productive resources per head and/orproductivity increases in the transformation of these resources into output and correspondingincome. These productivity increases can be the result of ‘quality’ improvements in the resourcesthemselves, as for example in the case of human capital accumulation. But they may also be theresult of a ‘better’ Organisation of the production process at large, where the knowledgeaccumulation process as such enables different firms to concentrate more completely on theirrespective comparative advantage activities, thus making the ‘ensemble’ of firms more productive.Whatever the type of productivity increase may be, knowledge accumulation is typically at the heartof the process of productivity growth. New growth theory studies the situations and motivationsunderlying the accumulation of knowledge, and how decisions regarding the direction and the rateof knowledge accumulation influence the growth performance of the economy at large. An importantpart of the theory deals with the distinction between growth as it arises out of accumulationdecisions taken by private individuals, and socially optimum decisions as they would be taken by abenevolent planner. Differences between privately and socially optimal decisions may then call forparticular types of policy interventions that can mitigate the negative growth effects of socially sub-optimal private decisions. The purpose of this course is to look into the sources of productivitygrowth, and particularly how technology and the decisions underlying changes in technology,contributes to such growth according to the theoretical insights brought forward in the frameworkof so-called new growth theory. That theory will be studied using capita selecta from a textbook likeBarro and Sala-i-Martin, as well as some seminal growth papers by Lucas, Romer, Aghion andHowitt, and Jones.

Course objectives

The purpose of this course is to gain a thorough understanding of the various models of endogenousgrowth, specifically with respect to the role of technology and innovation in these models.

Prerequisites

Minimum requirements are second year macro-economics and micro-economics as well asmathematics. It is absolutely necessary that students have a feeling for mathematical abstractions,and the way in which these are used in formal economic models. In addition, students must beprepared to work hard, as for most of them the actual computer implementation of an economicmodel will be a totally new experience. This holds a fortiori for handling the modelling software.

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Recommended reading

Assorted papers and a medium/high level growth textbook.


A.H. van Zon


Game Theory



Topics in game theory and economics include computation of Nash equilibrium and refinements,selfish routing in networks and the price of anarchy, and non-emptiness of the core.

Course objectives


Prerequisites


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Recommended reading



Hans Peters : Game Theory : A Multi-Leveled Approach. Springer-Verlag.David Luenberger and Yinyu Ye : Linear and Nonlinear Programming.Stephen Boyd and Lieven Vandenberghe : Convex optimization. Cambridge University Press.Christos H. Papadimitriou and Kenneth Steiglitz : Combinatorial Optimization: Algorithms andComplexity.Laurence A. Wolsey and George L. Nemhauser : Integer and Combinatorial Optimization, JohnWiley & Sons.Sebastian Bubeck (2015) : Algorithms and complexity. Foundations and trends in machinelearning 8 (231-358).Roger Myerson : Game Theory : Analysis of Conflict. Harvard University Press.


H.J.M. Peters


Equilibrium Theory


General equilibrium theory studies models of an economy organized as a system of competitivemarkets, in particular the existence of equilibria and their welfare properties. This course gives anintroduction to the theory at an advanced level, its conclusions and its limitations. The material istreated rigorously, and a substantial amount of time is spent on mathematical proofs.Typically, the contents are as follows. First, we study general theorems on welfare and equilibriumexistence, starting with an analysis of consumer and producer behavior. Afterwards, we studyfurther important topics such as externalities, (local) uniqueness, core, and the Sonnenschein-Mantel-Debreu Theorem. At the end, we study one topic in more detail, namely the question ofwhether equilibria of search and matching models converge to a competitive equilibrium whenfrictions become small.

http://www.accept.maastrichtuniversity.nl/meta/369090/game-theory?print=1

http://www.accept.maastrichtuniversity.nl/h.peters


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Course objectives

Get acquainted with advanced general equilibrium theory, with important literature in the field, andwith important mathematical proofs.

Prerequisites

Knowledge equivalent to the research master courses “Microeconomics I” (EBC4061) and“Mathematical Research Tools” (EBC4182)

Recommended reading

Typically, we use the following literature.* Debreu, G. (1959): Theory of Value, Yale University Press.* Mas-Colell A., M.D. Whinston, and J.R. Greene (1995): “Microeconomic Theory”, Oxford UniversityPress.* Selected papers.


S. Terstiege

Teaching methods: PBL, Presentation(s), Assignment(s), Lecture(s)Assessment methods: Participation, Oral examSchool of Business and Economics

Industrial Organisation and Public Economics


The courses provides basic knowledge on the theory of contests and tournaments. In thesemechanisms, several participants compete for prizes which are awarded according to relativeperformance. Real-world applications include sports competitions, political campaigns, lobbyingcontests, job promotion contests, and many others. To get a feeling for the type of models which wewill analyse in the course, please have a look at the survey article "Strategy in Contests" by Kai A.Konrad (2007).

http://www.accept.maastrichtuniversity.nl/meta/366780/equilibrium-theory?print=1

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Course objectives

Acquiring a structured insights into frequently used compensation schemes: Contests andTournaments.Learning about the relation of those compensation schemes in marketsComparing those compensation schemes with other frequently used schemes such as piece-wise compensation

Prerequisites

This research master course presumes knowledge equivalent to the first year research mastercourse in Microeconomics.

Recommended reading

Konrad, Kai A. (2007): Strategy in Contests – An Introduction, Working Paper.

You can download the introductory article with the following link:http://papers.ssrn.com/sol3/papers.cfm?abstract_id=960458. This is an overview article. In thecourse, we will read several scientific articles, some of which are summarized in the overview articleby Kai A. Konrad. The final list of articles will be announced later on the Eleum website.


C. Seel

Teaching methods: PBL, Presentation(s), Assignment(s)Assessment methods: Attendance, Participation, PresentationSchool of Business and Economics

Financial Markets and Institutions


This course provides an introduction to research in Financial Economics. We start with thefoundations of the industrial organisation of financial institutions, and build on that to introduce arange of topics including competition, the choice between market and bank financing, financialinnovation and regulation and crises.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=960458

http://www.accept.maastrichtuniversity.nl/meta/369256/industrial-organisation-and-public-economics?print=1

http://www.accept.maastrichtuniversity.nl/c.seel


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Course objectives

This course provides a more formal background to financial system architecture, the industrialorganisation of financial institutions and financial system regulation.

Prerequisites

Only for Research Master and Phd students.

Recommended reading

Freixas, X and J-C. Rochet (1998). Microeconomics of Banking, Cambridge, Massachusetts,USA: MIT Press;Dewatripont, M. and J. Tirole (1995). The Prudential Regulation of Banks. Cambridge,Massachusetts, USA: MIT Press.Bikker, J.A., J.W.B. Bos (2008), Bank Performance: A Theoretical and Empirical Framework forthe Analysis of Profitability, Competition and Efficiency, Routledge, New York, U.S.A.Selected Articles


J.W.B. Bos

Teaching methods: PBL, Presentation(s)Assessment methods: Final paper, Written examSchool of Business and Economics

Empirical Methods in Financial Research


The objective of the course is to provide students with tools to analyse financial decision makingbehaviour. The course will focus on research methodology that can be used to understand howmarket participants behave in financial markets (positive approach). This knowledge can be used todevelop new financial services and to optimize trading behaviour. Course participants will criticallyexamine the current literature on financial decision-making in economics, management, andpsychology. Students will develop skills about setting up a research design (experimental), collectingdata (soft and hard data) and analysing the collected data.

http://www.accept.maastrichtuniversity.nl/meta/370298/financial-markets-and-institutions?print=1

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Course objectives

The course is designed such that students will be able to complete the following by the end of thecourse:

Conduct research intended to understand financial behaviour.Differentiate between normative and positive models of decision-makingIndicate and outline the behavioural anomalies within financial decision-making theories (e.g.,the EU framework)illustrate behavioural anomalies in a real-life decision-making contextUtilize the decision-making models in a risky contextApply decision-making theories to complex choices

Recommended reading

Selected papers


J.W.B. Bos

Teaching methods: PBL, Presentation(s), Lecture(s), Assignment(s)Assessment methods: Final paper, AttendanceSchool of Business and Economics

Empirical Econometrics 1


The course would be devoted to techniques that are mainly used in microeconomic studies, laboureconomics, technology, industrial Organization. The emphasis will be on the understanding of thefundamentals behind the techniques used, their applicability, empirical relevance, economicinterpretation, their limitations, both from an empirical and methodological point of view . Eachtopic will be illustrated by empirically papers published in a leading economic journal illustrating theuse of the techniques.

The students will work on empirical paper(s)/project(s) to learn the applications of the techniquesand models discussed. The econometrics/statistical package that will be mainly used through thecourse is STATA.

http://www.accept.maastrichtuniversity.nl/meta/366940/empirical-methods-financial-research?print=1



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List of possible topics that will be discussed during the course:

* Causal models, OLS, IV* Binary outcome models (logit, probit …)* Unobserved heterogeneity* Multinomial models* Tobit and selection Models* Treatment Effect causal models, policy evaluation, regression discontinuity, ...* Survival analysis and transition analysis* GMM estimation of intertemporal models in microeconomics* Count data models, poison regression models

Course objectives

The purpose of this course is to review and discuss a number of econometric and statisticaltechniques that are essential for empirical research in economics.

Prerequisites

We assume that the students entering the Research master and following this course have at least alevel comparable to the IES bachelor course Empirical Econometrics; have a good workingknowledge of matrix algebra, of integrals calculus and are familiar with concepts from probabilitytheory and mathematical statistics.

Recommended reading

Cameron, A.C. and P. K. Trivedi (2005), Microeconometrics: Methods and Applications,(Cambridge University Press, Cambridge) .

Angrist, J.A. and J.S. Pischke (2009), Mostly Harmless Econometrics, (Princeton UniversityPress, Princeton).

Greene, W.H. (2007) Econometric Analysis, (Prentice Hall, New York).

Wooldridge, Jeffrey M. (2011), Econometric Analysis of Cross Section and Panel Data, 2ndedition (MIT Press, Cambridge).

Empirical papers from leading economic journals.

EBC4184Period 12 Sep 201925 Oct 2019Print course descriptionECTS credits:

http://www.accept.maastrichtuniversity.nl/meta/368194/empirical-econometrics-1?print=1


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6.5Coordinator:

P. Mohnen

Teaching methods: PBL, Presentation(s), Lecture(s), Assignment(s), Work in subgroupsAssessment methods: Participation, Written exam, Oral examSchool of Business and Economics

Game Theory and Optimisation



Topics in game theory and economics include computation of Nash equilibrium and refinements andmechanism design.

Course objectives


Prerequisites


Recommended reading



Hans Peters : Game Theory : A Multi-Leveled Approach. Springer-Verlag.Stephen Boyd and Lieven Vandenberghe : Convex Optimization. Cambridge University Press.Roger Myerson : Game Theory : Analaysis of Conflict. Harvard University Press.L.J. Vanderbei : Linear Programming - Foundations and Extensions. 4th Edition, Springer.Jorge Nocedal and Stephen J. Wright : Numerical Optimization. 2nd Edition, Springer.

http://www.accept.maastrichtuniversity.nl/p.mohnen


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EBC4188Period 12 Sep 201925 Oct 2019Print course descriptionECTS credits: 6.5Coordinators:

A.J. VermeulenM. Staudigl


Capita Selecta Economic and Financial Research


The content of the course is not fixed. Several topics will be proposed each year depending on thoseproposed by the GSBE research program leader, depending on the visiting professors and on theGSBE fellows.

Examples of possible topics include epistemic game theory, advanced topics in labour economics,asset pricing, econometrics, ...

Course objectives

Participants will be confronted to advanced/specialized topics that are related to one or more of theresearch programs of GSBE. In this high level course, students will study advanced topics and up todate material that enable them to have access to the frontier of the research in this specialisation.

Recommended reading

Journal papers & book chapters.

EBC4190Print course descriptionECTS credits: 6.5Teaching methods: Assignment(s), Lecture(s), PBL, Presentation(s)Assessment methods: Participation, Attendance, Final paperSchool of Business and Economics

http://www.accept.maastrichtuniversity.nl/meta/366294/game-theory-and-optimisation?print=1


http://www.accept.maastrichtuniversity.nl/m.staudigl

http://www.accept.maastrichtuniversity.nl/meta/369022/capita-selecta-economic-and-financial-research?print=1


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Behavioural Economics


Starting from the observation that human behaviour often deviates from traditional homoeconomicus models, behavioural economists try to model how people actually behave. In this coursewe will discuss why they do that, how they do that and what the results of their efforts are. We startby discussing the reasons to build models of human behaviour and the challenges faced when tryingto do so. Next we will critically examine different general approaches to this endeavour. Having setthe stage we will study behavioural economics models of choice, belief updating, decision makingunder risk, intertemporal choice, strategic decision making, and social preferences. Finally weexplore the implications of behavioural economics for policy making and macro-economic modelling.Although we discuss the interplay between theory and empirics we will focus on theories, ratherthan empirical observations, of human behaviour.

Course objectives

Form an opinion on the why and how of modelling human behaviour, in particular as itdeviates from the rational and selfish homo economics.Become acquainted with some of the most important behavioural economics models on avariety of topics.Understand, build and expand models of human behaviour.Understand the interplay between theory and data, including the ability to build a theorybased on observed behavioural regularities, assess a theory based on observed behaviour, andconceive of possible empirical tests of a theory.Acquire intimate knowledge of the theoretical and empirical literature related to the chosenresearch topic.Design a research project related to behavioural economics.

Prerequisites

Research masters students only: Microeconomics at a research Master’s level (e.g.: EBC4061Microeconomics I and EBC4204 Microeconomics 2); exposure to experimental economicsmethodology (e.g. EBS4026 Experimental Economics Methods) is an advantage but not a formalrequirement.

Recommended reading


EBC4200Period 12 Sep 201925 Oct 2019Print course descriptionECTS credits: 6.5

http://www.accept.maastrichtuniversity.nl/meta/369680/behavioural-economics?print=1


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Coordinator:

J. Linde

Teaching methods: PBL, Lecture(s)Assessment methods: Participation, Final paperSchool of Business and Economics

Labour Economics


The course sheds light on the employment decisions from the perspective of the firm and the worker.Topics that are covered in the course are the neoclassical labour supply model, labour demand,wages and employment determination with reference to labour market institutions (e.g. minimumwages, unemployment insurance, employment protection), search and matching theory, humancapital theory, and the design of incentive schemes. There will be an emphasis on the interactionbetween theoretical and empirical modelling. Insights from state-of-the art empirical work will bediscussed alongside theory.

Course objectives

Participants will gain a solid knowledge of labour economics and acquire an understanding of thefunctioning of labour markets. There will be an emphasis on the interaction between theoretical andempirical modelling. Students will become competent to critically evaluate economic theory in lightof empirical evidence.

Prerequisites

Microeconomics I

Recommended reading

Journal articles; chapters from Cahuc and Zylberberg (2004)

EBC4206Period 228 Oct 201920 Dec 2019Print course descriptionECTS credits: 6.5Coordinator:

T.J. Dohmen

Teaching methods: Lecture(s), Assignment(s), PBL, Presentation(s)

http://www.accept.maastrichtuniversity.nl/j.linde

http://www.accept.maastrichtuniversity.nl/meta/370036/labour-economics?print=1

http://www.accept.maastrichtuniversity.nl/t.dohmen


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Assessment methods: Written exam, Participation, Final paperSchool of Business and Economics

Economics of Education


The course covers theoretical topics such as: (a) Human capital theory; (b) The technology of skillformation: how does the acquisition of skills affect the future acquisition of skills and what are theimplications for the timing of education?; (c) The determinants of school success: What are theeconomic preference parameters that determine choice people make in the acquisition of skills andhow does this affect future outcomes?; (d) Tracking in education: How does the structure of theeducational system, e.g. with early tracking or comprehensive schools and second chance optionslike the GED shape outcomes?; (e) Training at the workplace and informal learning; (f)Educational/vocational choice, labour market opportunities, preferences and the option value ofeducation and (g) Educational choice and competition and empirical issue like the measurement ofskills and the identification of key parameters in education.

Course objectives

Participants will acquire knowledge of the economics of education and learn how to investigateeducational issues from an economic point of view. Economic theory will be used to study theoptimal design of educational systems and the curriculum and to study the control mechanisms bywhich the functioning of the systems can be improved. Student will acquire knowledge about themeasurement of skills, how such measures can be used for educational policy and their limitations.Furthermore, students will acquire understanding of typical challenges for empirical identificationfor key parameters and possibilities to tackle these empirical challenges.

Prerequisites

Microeconomics I

Recommended reading

Journal articles

EBC4207Period 12 Sep 201925 Oct 2019Print course descriptionECTS credits: 6.5Coordinator:

T. Schils

Teaching methods:

http://www.accept.maastrichtuniversity.nl/meta/366474/economics-education?print=1

http://www.accept.maastrichtuniversity.nl/t.schils


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PBL, Lecture(s), Assignment(s)Assessment methods: Participation, Oral exam, Final paperSchool of Business and Economics

Microeconomics II


The course provides an exposition of key elements of modern microeconomic theory at an advancedlevel. Topics include information economics and mechanism design. Note that this is a researchmaster course. We treat the material rigorously, and a substantial amount of time will be spent onmathematical proofs.

Course objectives

Students learn to apply mathematical tools to model economic problems, to develop the theoreticalframework of microeconomics and to prove its results.

Prerequisites

Mathematical Research Tools, EBC4182.

Recommended reading

Main text:

Jehle GA and PJ Reny (2011), Advanced Microeconomic Theory.

Recommended text:

Mas-Colell A, MD Whinston and JR Green (1995), Microeconomic Theory.

EBC4204Period 43 Feb 20203 Apr 2020Print course descriptionECTS credits: 6.5Coordinator:

A. Predtetchinski

Teaching methods: Assignment(s), Lecture(s)Assessment methods: Written exam, Oral exam, Final paperSchool of Business and Economics

http://www.accept.maastrichtuniversity.nl/meta/366150/microeconomics-ii?print=1



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High-Dimensional Econometric Methods for Big Data


In this course we cover several advanced techniques that have recently been developed ineconometrics and statistics for the analysis of high-dimensional problems, which often arise in thecontext of Big Data. We will discuss theoretical properties of the methods, their practicalimplementation using the statistical programming language R and the application of these methodsto real-life economic and financial datasets.

Topics that are covered include:

Linear regression with many regressors: the "curse of dimensionality" in standard leastsquares estimation and standard approaches to model selection (such as information criteriaand cross-validation);Modern statistical techniques for estimating high-dimensional regression models such aspenalized regression (the lasso, ridge and variants): implementation, interpretation andproperties;The standard modern tool in high-dimensional econometrics: Estimation, inference andforecasting in common factor models;Inference in high-dimensional regression models: multiple hypothesis testing, post-modelselection inference, construction of 'honest' confidence intervals and hypothesis tests;High-dimensional discrete choice/classification methods.

The course will consist of lectures, in which the methods and theory are introduced, and tutorials, inwhich groups of students present specific papers on the subject. Students also have to write a paperfor which they implement and apply the methods to economic problems.

Course objectives

The objective of this course is to provide students with an understanding of modern and advancedeconometric techniques for the analysis of high-dimensional data. Students will be able to read andunderstand theoretical papers on the subject, to implement the techniques themselves in statisticalsoftware, and to apply the techniques to data used in economics and business. In addition to gainingthis knowledge they will develop the skills to assess such methods critically and consequently adaptthem to suit their needs.

Prerequisites

This is an ADVANCED econometric course. Familiarity with the mathematical methods underlyingeconometric theory is therefore essential. In particular, students need to have solid background inprobability theory, mathematical statistics, econometric methods and time series analysis,comparable to the knowledge obtained during the econometric courses of the bachelor programmeEconometrics and Operations Research. Familiarity with asymptotic analysis is necessary. Inaddition, a solid knowledge about time series econometrics is recommended, in particular about VARmodels. One way to achieve (more than) sufficient knowledge of time series econometrics is byfollowing the course Time Series Analysis and Dynamic Econometrics (potentially in parallel).


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Recommended reading

Hastie, T., R. Tibshirani and J. Friedman (2009). The Elements of Statistical Learning: DataMining, Inference, and Prediction (2nd Ed). Freely available athttp://statweb.stanford.edu/~tibs/ElemStatLearn/Hastie, T., R. Tibshirani and M. Wainwright (2015). Statistical Learning with Sparsity: TheLasso and Generalizations. Freely available athttp://web.stanford.edu/%7Ehastie/StatLearnSparsity/Selected papers and book chapters (to be announced on Eleum/Student Portal)

EBC4218Period 43 Feb 20203 Apr 2020Print course descriptionECTS credits: 6.5Coordinator:

S.J.M. Smeekes

Teaching methods: Lecture(s), PBL, Presentation(s), Work in subgroupsAssessment methods: Final paper, Participation, Written exam

Specialisation Development & Utilization of HumanResourcesSchool of Business and Economics

Labour Economics


The course sheds light on the employment decisions from the perspective of the firm and the worker.Topics that are covered in the course are the neoclassical labour supply model, labour demand,wages and employment determination with reference to labour market institutions (e.g. minimumwages, unemployment insurance, employment protection), search and matching theory, humancapital theory, and the design of incentive schemes. There will be an emphasis on the interactionbetween theoretical and empirical modelling. Insights from state-of-the art empirical work will bediscussed alongside theory.

Course objectives

Participants will gain a solid knowledge of labour economics and acquire an understanding of thefunctioning of labour markets. There will be an emphasis on the interaction between theoretical andempirical modelling. Students will become competent to critically evaluate economic theory in lightof empirical evidence.

http://statweb.stanford.edu/~tibs/ElemStatLearn/Hastie

http://web.stanford.edu/%7Ehastie/StatLearnSparsity/

http://www.accept.maastrichtuniversity.nl/meta/370282/high-dimensional-econometric-methods-big-data?print=1



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Prerequisites

Microeconomics I

Recommended reading

Journal articles; chapters from Cahuc and Zylberberg (2004)

EBC4206Period 228 Oct 201920 Dec 2019Print course descriptionECTS credits: 6.5Coordinator:

T.J. Dohmen

Teaching methods: Lecture(s), Assignment(s), PBL, Presentation(s)Assessment methods: Written exam, Participation, Final paperSchool of Business and Economics

Economics of Education


The course covers theoretical topics such as: (a) Human capital theory; (b) The technology of skillformation: how does the acquisition of skills affect the future acquisition of skills and what are theimplications for the timing of education?; (c) The determinants of school success: What are theeconomic preference parameters that determine choice people make in the acquisition of skills andhow does this affect future outcomes?; (d) Tracking in education: How does the structure of theeducational system, e.g. with early tracking or comprehensive schools and second chance optionslike the GED shape outcomes?; (e) Training at the workplace and informal learning; (f)Educational/vocational choice, labour market opportunities, preferences and the option value ofeducation and (g) Educational choice and competition and empirical issue like the measurement ofskills and the identification of key parameters in education.

Course objectives

Participants will acquire knowledge of the economics of education and learn how to investigateeducational issues from an economic point of view. Economic theory will be used to study theoptimal design of educational systems and the curriculum and to study the control mechanisms bywhich the functioning of the systems can be improved. Student will acquire knowledge about themeasurement of skills, how such measures can be used for educational policy and their limitations.Furthermore, students will acquire understanding of typical challenges for empirical identificationfor key parameters and possibilities to tackle these empirical challenges.

http://www.accept.maastrichtuniversity.nl/meta/370036/labour-economics?print=1

http://www.accept.maastrichtuniversity.nl/t.dohmen


50

Prerequisites

Microeconomics I

Recommended reading

Journal articles


T. Schils

Teaching methods: PBL, Lecture(s), Assignment(s)Assessment methods: Participation, Oral exam, Final paper

Specialisation Econometrics, Finance & MonetaryEconomicsSchool of Business and Economics

Macroeconomics II


The main goal of this course is to apply the concepts analysed in "Macroeconomics". While theclassic literature from twenty and thirty years ago can be admired for articulating and attempting toformalize a number of central policy issues, its limitations are many. The classic approach lacks themicro foundations needed for internal consistency, it fails to deal with dynamics in any coherentway, and its vision of capital market integration may generously be described as narrow. Perhapsmost importantly, the older literature simply doesn’t deal sensibly with many questions that arecentral to today’s policy world, such as current accounts, government budget deficits, speculativeattacks, and the implications of the expanding global markets for securities and derivatives. Alimited number of problems in international finances will be investigated within a systematic modernapproach. New approaches will be also developed as well as new methodologies to investigate thenew topics in international finance.

Course objectives

This course is an advanced macroeconomic course. The students are expected to apply the modelslearnt in Macroeconomics in order to write a publishable empirical paper in international

http://www.accept.maastrichtuniversity.nl/meta/366474/economics-education?print=1

http://www.accept.maastrichtuniversity.nl/t.schils


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macroeconomics and finance.

Prerequisites

Macroeconomics I

Recommended reading

Obstfeld, Maurice & Kenneth Rogoff, Foundations of International Macroeconomics,Cambridge, MA: The MIT Press, 1996.


L.M. Lieb

Teaching methods: Presentation(s), PBL, Paper(s)Assessment methods: Participation, Written examSchool of Business and Economics

Workshops in Finance


These goals will be attained through the attendance of a full academic year of a special seminarseries in Financial Economics organised by the Finance Department, and in which senior of thedepartment will participate.

Course objectives

The workshops in Finance have two purposes.

The first is to give Research master students a broad insight into current research in FinancialEconomics through a regular seminar series.

The second purpose is to provide Research master students with the skills needed in today’sscientific environment, such as presenting one’s research to a group of scientific peers andconstructively discussing research papers.

http://www.accept.maastrichtuniversity.nl/meta/367820/macroeconomics-ii?print=1



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Prerequisites

Only for Research Master students.

Recommended reading

W Thomson (2001) A guide for the young economist, MIT press.

Research papers of the finance department and to be discussed by the participants.


P.J. Mauricio Rodrigues

Teaching methods: Presentation(s), Lecture(s)Assessment methods: Attendance, ParticipationSchool of Business and Economics

Empirical Methods in Financial Research


The objective of the course is to provide students with tools to analyse financial decision makingbehaviour. The course will focus on research methodology that can be used to understand howmarket participants behave in financial markets (positive approach). This knowledge can be used todevelop new financial services and to optimize trading behaviour. Course participants will criticallyexamine the current literature on financial decision-making in economics, management, andpsychology. Students will develop skills about setting up a research design (experimental), collectingdata (soft and hard data) and analysing the collected data.

Course objectives

The course is designed such that students will be able to complete the following by the end of thecourse:

Conduct research intended to understand financial behaviour.Differentiate between normative and positive models of decision-makingIndicate and outline the behavioural anomalies within financial decision-making theories (e.g.,the EU framework)

http://www.accept.maastrichtuniversity.nl/meta/369698/workshops-finance?print=1

http://www.accept.maastrichtuniversity.nl/p.rodrigues


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illustrate behavioural anomalies in a real-life decision-making contextUtilize the decision-making models in a risky contextApply decision-making theories to complex choices

Recommended reading

Selected papers


J.W.B. Bos

Teaching methods: PBL, Presentation(s), Lecture(s), Assignment(s)Assessment methods: Final paper, Attendance

Specialisation Economic Theory, Behaviour & ComputingSchool of Business and Economics

Game Theory



Topics in game theory and economics include computation of Nash equilibrium and refinements,selfish routing in networks and the price of anarchy, and non-emptiness of the core.

Course objectives


http://www.accept.maastrichtuniversity.nl/meta/366940/empirical-methods-financial-research?print=1



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Prerequisites


Recommended reading



Hans Peters : Game Theory : A Multi-Leveled Approach. Springer-Verlag.David Luenberger and Yinyu Ye : Linear and Nonlinear Programming.Stephen Boyd and Lieven Vandenberghe : Convex optimization. Cambridge University Press.Christos H. Papadimitriou and Kenneth Steiglitz : Combinatorial Optimization: Algorithms andComplexity.Laurence A. Wolsey and George L. Nemhauser : Integer and Combinatorial Optimization, JohnWiley & Sons.Sebastian Bubeck (2015) : Algorithms and complexity. Foundations and trends in machinelearning 8 (231-358).Roger Myerson : Game Theory : Analysis of Conflict. Harvard University Press.


H.J.M. Peters


Equilibrium Theory


General equilibrium theory studies models of an economy organized as a system of competitivemarkets, in particular the existence of equilibria and their welfare properties. This course gives anintroduction to the theory at an advanced level, its conclusions and its limitations. The material istreated rigorously, and a substantial amount of time is spent on mathematical proofs.

http://www.accept.maastrichtuniversity.nl/meta/369090/game-theory?print=1

http://www.accept.maastrichtuniversity.nl/h.peters


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Typically, the contents are as follows. First, we study general theorems on welfare and equilibriumexistence, starting with an analysis of consumer and producer behavior. Afterwards, we studyfurther important topics such as externalities, (local) uniqueness, core, and the Sonnenschein-Mantel-Debreu Theorem. At the end, we study one topic in more detail, namely the question ofwhether equilibria of search and matching models converge to a competitive equilibrium whenfrictions become small.

Course objectives

Get acquainted with advanced general equilibrium theory, with important literature in the field, andwith important mathematical proofs.

Prerequisites

Knowledge equivalent to the research master courses “Microeconomics I” (EBC4061) and“Mathematical Research Tools” (EBC4182)

Recommended reading

Typically, we use the following literature.* Debreu, G. (1959): Theory of Value, Yale University Press.* Mas-Colell A., M.D. Whinston, and J.R. Greene (1995): “Microeconomic Theory”, Oxford UniversityPress.* Selected papers.


S. Terstiege

Teaching methods: PBL, Presentation(s), Assignment(s), Lecture(s)Assessment methods: Participation, Oral examSchool of Business and Economics

Industrial Organisation and Public Economics


The courses provides basic knowledge on the theory of contests and tournaments. In these

http://www.accept.maastrichtuniversity.nl/meta/366780/equilibrium-theory?print=1

http://www.accept.maastrichtuniversity.nl/s.terstiege


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mechanisms, several participants compete for prizes which are awarded according to relativeperformance. Real-world applications include sports competitions, political campaigns, lobbyingcontests, job promotion contests, and many others. To get a feeling for the type of models which wewill analyse in the course, please have a look at the survey article "Strategy in Contests" by Kai A.Konrad (2007).

Course objectives

Acquiring a structured insights into frequently used compensation schemes: Contests andTournaments.Learning about the relation of those compensation schemes in marketsComparing those compensation schemes with other frequently used schemes such as piece-wise compensation

Prerequisites

This research master course presumes knowledge equivalent to the first year research mastercourse in Microeconomics.

Recommended reading

Konrad, Kai A. (2007): Strategy in Contests – An Introduction, Working Paper.

You can download the introductory article with the following link:http://papers.ssrn.com/sol3/papers.cfm?abstract_id=960458. This is an overview article. In thecourse, we will read several scientific articles, some of which are summarized in the overview articleby Kai A. Konrad. The final list of articles will be announced later on the Eleum website.


C. Seel

Teaching methods: PBL, Presentation(s), Assignment(s)Assessment methods: Attendance, Participation, PresentationSchool of Business and Economics

Behavioural Economics

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=960458

http://www.accept.maastrichtuniversity.nl/meta/369256/industrial-organisation-and-public-economics?print=1

http://www.accept.maastrichtuniversity.nl/c.seel


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Starting from the observation that human behaviour often deviates from traditional homoeconomicus models, behavioural economists try to model how people actually behave. In this coursewe will discuss why they do that, how they do that and what the results of their efforts are. We startby discussing the reasons to build models of human behaviour and the challenges faced when tryingto do so. Next we will critically examine different general approaches to this endeavour. Having setthe stage we will study behavioural economics models of choice, belief updating, decision makingunder risk, intertemporal choice, strategic decision making, and social preferences. Finally weexplore the implications of behavioural economics for policy making and macro-economic modelling.Although we discuss the interplay between theory and empirics we will focus on theories, ratherthan empirical observations, of human behaviour.

Course objectives

Form an opinion on the why and how of modelling human behaviour, in particular as itdeviates from the rational and selfish homo economics.Become acquainted with some of the most important behavioural economics models on avariety of topics.Understand, build and expand models of human behaviour.Understand the interplay between theory and data, including the ability to build a theorybased on observed behavioural regularities, assess a theory based on observed behaviour, andconceive of possible empirical tests of a theory.Acquire intimate knowledge of the theoretical and empirical literature related to the chosenresearch topic.Design a research project related to behavioural economics.

Prerequisites

Research masters students only: Microeconomics at a research Master’s level (e.g.: EBC4061Microeconomics I and EBC4204 Microeconomics 2); exposure to experimental economicsmethodology (e.g. EBS4026 Experimental Economics Methods) is an advantage but not a formalrequirement.

Recommended reading



J. Linde

http://www.accept.maastrichtuniversity.nl/meta/369680/behavioural-economics?print=1

http://www.accept.maastrichtuniversity.nl/j.linde


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Teaching methods: PBL, Lecture(s)Assessment methods: Participation, Final paper

Specialisation Technology, Innovation & IndustrialDynamicsSchool of Business and Economics

Technology, Networks and the New Economy


The course examines theoretical and empirical research on the economics of networks, particularlyas applied to technology and innovation. Recent research in economics and business has addressedthe fact that almost all economic agents interact directly with only a few other agents and that thisset of agents changes only slowly over time. When this is the case, a network model is more relevantin capturing the nature of economic interaction than is a pure market model. This is the basicpremise of this course. We start by introducing concepts of social network analysis, as this is theanalytical basis for research on networks. With these definitions, and technical definitions of thestatistics used to describe network structures, we move to a deeper analysis. Part of the goal is todescribe existing, relevant economic networks; part of the goal is to understand how networks formand evolve; part of the goal is to understand how an agent’s position in a network influence theagent’s performance; part of the goal is to understand how different networks perform in aggregate,in achieving some social goal. Empirically, there is a heavy focus on strategic alliance networks(which makes this course of interests to business students as well as economists). Two importantempirical question involve how links within a network form and dissolve; and how a firm’s position inthe network affects is performance. Theoretically, we use both game theory and numericalsimulation tools. The basic questions here have to do with issues of stability (a network is acollection of bilateral links; a stable network is one in which agents have no incentives to make new,or break existing links) and efficiency (given a social welfare function, some network structures mayperform better than others).

Course objectives

The purpose of this course is to understand the interaction between network structures, knowledgecreation and diffusion, and economic performance at various levels of aggregation.

Prerequisites

Intermediate microeconomics. An intermediate level of economics is recommended. Exchangestudents should have an intermediate or advanced level of micro economics.

Recommended reading

We make use of recent journal articles.


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R. Cowan

Teaching methods: PBL, Paper(s)Assessment methods: Final paperSchool of Business and Economics

Technology and Productivity Growth


Growth in income per head arises out of the accumulation of productive resources per head and/orproductivity increases in the transformation of these resources into output and correspondingincome. These productivity increases can be the result of ‘quality’ improvements in the resourcesthemselves, as for example in the case of human capital accumulation. But they may also be theresult of a ‘better’ Organisation of the production process at large, where the knowledgeaccumulation process as such enables different firms to concentrate more completely on theirrespective comparative advantage activities, thus making the ‘ensemble’ of firms more productive.Whatever the type of productivity increase may be, knowledge accumulation is typically at the heartof the process of productivity growth. New growth theory studies the situations and motivationsunderlying the accumulation of knowledge, and how decisions regarding the direction and the rateof knowledge accumulation influence the growth performance of the economy at large. An importantpart of the theory deals with the distinction between growth as it arises out of accumulationdecisions taken by private individuals, and socially optimum decisions as they would be taken by abenevolent planner. Differences between privately and socially optimal decisions may then call forparticular types of policy interventions that can mitigate the negative growth effects of socially sub-optimal private decisions. The purpose of this course is to look into the sources of productivitygrowth, and particularly how technology and the decisions underlying changes in technology,contributes to such growth according to the theoretical insights brought forward in the frameworkof so-called new growth theory. That theory will be studied using capita selecta from a textbook likeBarro and Sala-i-Martin, as well as some seminal growth papers by Lucas, Romer, Aghion andHowitt, and Jones.

Course objectives

The purpose of this course is to gain a thorough understanding of the various models of endogenousgrowth, specifically with respect to the role of technology and innovation in these models.

http://www.accept.maastrichtuniversity.nl/meta/368554/technology-networks-and-new-economy?print=1

http://www.accept.maastrichtuniversity.nl/r.cowan


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Prerequisites

Minimum requirements are second year macro-economics and micro-economics as well asmathematics. It is absolutely necessary that students have a feeling for mathematical abstractions,and the way in which these are used in formal economic models. In addition, students must beprepared to work hard, as for most of them the actual computer implementation of an economicmodel will be a totally new experience. This holds a fortiori for handling the modelling software.

Recommended reading

Assorted papers and a medium/high level growth textbook.


A.H. van Zon

Teaching methods: PBL, Assignment(s)Assessment methods: Written exam

Specialisation Econometrics SkillsSchool of Business and Economics

Presentation Skills


Giving formal presentations in English need not be painful, although it will inevitably be not withoutits challenges. Our aim is to try to minimise any perceived difficulties and to offer you the chance topractice your topic-specific and general language, give a presentation in a controlled and monitoredenvironment, and to give feedback where it is helpful to do so.The course covers the wide range of issues that need to be considered when conducting orpreparing to give presentations in English in a multilingual and multicultural environment. It focuseson your delivery skills and, in addition, it covers vocabulary and expressions that are valuable ineffective formal communication.You will be required to deliver three prepared oral presentation during the course and also to delivera poster presentation to a real audience.

http://www.accept.maastrichtuniversity.nl/meta/368476/technology-and-productivity-growth?print=1

http://www.accept.maastrichtuniversity.nl/adriaan.vanzon


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Course objectives

The objectives of this skills training are as follows:

To increase your awareness of the range of issues that needs to be considered when preparing1.and delivering a presentation for a multilingual and multicultural audience.To give you some practice at delivering a formal presentation in English, using your fellow2.participants as the audience.To give you specific feedback on the structure of your presentation, your delivery skills, vocal3.and verbal performance, body language, and use of visuals.To make you aware of the criteria against which you will be viewed and assessed by your4.audience in a real, live situation.To make you aware of how to prepare and deliver a poster presentation, and to practise5.delivering it to a real audience and field relevant questions.

After this training, do not expect perfection immediately – it is normal to have to check words andexpressions and to ask for advice. You should be able to give constructive advice to your peers, andto recognize what your strong points are and where you need to improve.

Prerequisites

Requirements enrolment:Only for RM students and PhD students!!!

Recommended reading

There is no literature required for this skill.


A.M. Bos

Teaching methods: PBL, Presentation(s), Assignment(s)Assessment methods: Attendance, Participation, Oral examSchool of Business and Economics

http://www.accept.maastrichtuniversity.nl/meta/369904/presentation-skills?print=1

http://www.accept.maastrichtuniversity.nl/i.bos


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Topics in Computational Econometrics


The students use a statistical and matrix programming language (Gauss or R for example) softwareto implement computationally intensive econometric techniques. The focus will be on programmingand using advanced techniques not readily available in standard statistical or optimisation packages.These techniques may for example include simulation based methods (bootstrap, Monte Carlo,indirect inference.).

Course objectives

Students will work with an advanced statistical and matrix programming language in order to solveadvanced problems in econometrics.

Prerequisites

Courses from periods 1 and 2 from the Master in Econometrics.Restricted to econometrics students or students from the MSc. Research master programs.

Recommended reading

A selection of (survey) articles on the specific econometric techniques used and manuals on thestatistical software used (all will be distributed via the course website).


S.J.M. Smeekes

Teaching methods: Lecture(s), Assignment(s), Work in subgroupsAssessment methods: Final paper

http://www.accept.maastrichtuniversity.nl/meta/367588/topics-computational-econometrics?print=1


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