introduction to quantitative methods for economists
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Introduction to Quantitative Methods for EconomistsTRANSCRIPT
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Introduction to quantitative methods for EconomistsCourse Code:
153400120
Unit value:
1
Year of study:
Year 1
Taught in:
Full YearThis is an introductory course for first year students with NO A levels mathematics. The course offers essential quantitative skills useful for current and future undergraduate core courses. It covers basic mathematical and statistical concepts. The first component includes topics as: basic algebra, polynomial, logarithmic and exponential functional forms, differentiation and unconstrained and constrained optimisation. The statistics component focuses on descriptive statistics, probability theory.
This is a core for Year 1 students with no A level maths taking BSc Economics and BSc Development Economics and for Year 1 or 2 of students with no A level maths taking a two-subjects degree with Economics. It is a prerequisite for Quantitative Methods for Economists.
Objectives and learning outcomes of the courseAt the end of the course, students are expected to be able to:
1. Understand laws of indices, roots and surds an perform algebraic manipulation of
polynomials, including expanding brackets and collecting like terms and factorisation
2. Solve quadratic and cubic equations; understand the role and use of the discriminant and the
factor theorem
3. Solve simultaneous equations by substitution and elimination, and inequalities
4. Perform graphical analysis of functions, sketch curves defined by simple equations,
geometrical interpretation of algebraic solution of equations and systems of equation,
5. Understand exponential and logarithmic functions and laws of exponentials and logarithms
6. Use exponential and logarithmic functions to analyse growth , interest compounding and
investment appraisal
7. Understand differentiation and higher order derivatives for univariate functions
8. Understand partial derivatives and total differentials for multivariate functions
9. Demonstrate understanding of and ability to explain the economic applications of
differentiation, and use it to formulate economic problems, including elasticities, marginal
cost/ benefit, marginal product of labour/capital, marginal utilities.
10. Find unconstrained optima of functions with one or more choice variables
11. Find constrained optima using the Lagrange multiplier and substitution methods
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12. Understand and use these techniques to solve problems in economics, such as profit
maximisation, cost minimisation or utility optimisation
13. Apply descriptive statistics to summarise data and explain basic concepts of probability
theory
Method of assessmentAssessment weighting: Exam 100%
Suggested reading
Preliminary Reading:
1. Jacques, I Mathematics for Economics and Business (6th Edition, Prentice Hall, 2009)
2. Chiang, A. C. and K. Wainwright Fundamental Methods of Mathematical Economics (Fourth
Edition, McGraw-Hill, 2005).
3. Sydasaeter, K. and P Hammond Essential Mathematics for Economic Analysis (3rd Edition,
Prentice Hall, 2008)
4. Renshaw, G. Maths for Economics (2nd Edition, Oxford University Press, 2009)
5. Barrow, M. Statistics for Economics Accounting and Business Studies (5th Edition, Prentice
Hall, 2009).
Quantitative methods for EconomistsCourse Code:
153400121
Unit value:
1
Year of study:
Year 1 or Year 2
Taught in:
Full YearThis course is offered to students who have at least a B in A-Level maths (or equivalent) attained. The course offers a survey of basic economic statistical techniques and applied mathematical analysis useful for intermediate and advanced economic theory. The course is an essential prerequisite for Econometrics.
This is a core course for the BSc Economics and compulsory for BSc Development Economics and BA Economics and … (two subject degree with Economics to appear first in title). Introduction to Quantitative Methods for Economists is a prerequisite for this course if taken in year two. Students with A level mathematics or equivalent may be permitted to take this course in Year 1, subject to the year tutor’s approval. It is a pre-requisite for Econometrics.
Prerequisites(153400120) Introduction to Quantitative Methods for Economists
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Objectives and learning outcomes of the courseOn successful completion of the course, students should be able to:
use matrices for simple manipulations
solve system of equations using matrix algebra
use Jacobien determinants to test for functional dependence
demonstrate understanding of, derivatives, rules of differentiation, partial derivatives, total
differential, higher order derivatives, their uses and applications
find unconstrained and constrained optima and use these techiques to solve problems in
economics
understand indefinite and definite integrals and apply them to economic problems
use index numbers to describe changes in prices and quantity
use Lorentz curve and Gini coefficient to describe inequality
explain basic concepts in probability theory including, but not restricted to, experiment,
population or sample space, sample point, event, mutually exclusive, equally likely and
collectively exhaustive events, random variable, discrete and continuous random variable,
probability, probability distribution or probability density function (PDF), statistical
independence.
use characteristics or moments of PDF including, but not restricted to expected value, variance
and standard deviation, skewness and kurtosis, covariance, coefficient of correlation,
conditional and unconditional expectation
use population parameters and sample estimators including, but not restricted to sample mean,
sample variance, sample standard deviation, sample covariance, sample correlation, sample
skewness and sample kurtosis
demonstrate understanding of and ability to use normal distribution, chi-square, t and F
distributions
explain the sampling distribution of an estimator (e.g. the sample mean)
demonstrate understanding of measures of goodness to fit including their uses and limitations
explain the assumptions of the classical linear regression model
use hypothesis test on regression coefficients
Method of assessmentAssessment weighting: Exam 80%, weekly mini-tests 20%
Suggested reading
Background Reading
Mathematics
Abadir, K. M. and J. R. Magnus (2005) Matrix Algebra, Cambridge.
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Chiang, A.C. and K. Wainwright (2005) Fundamental Methods of Mathematical Economics,
Forth Edition. McGraw-Hill.
Jacques, I. (2009) Mathematics for Economics and Business, 5th Edition, Prentice Hall.
Wisniewski, M. (2013) Mathematics for Economics, 3rd Edition, Palgrave Macmillan.
Statistics
Barrow, M. (2009) Statistics for Economics Accounting and Business Studies, 5th Edition,
Prentice-Hall.
Diez, D., C. Barr and M. Cetinkaya-Rundel (2015) Openintro Statistics, 3rd Edition, Openintro.
Grinstead, C. and J. L. Snell (1997) Introduction to Probability, American Mathematical Society.
Illowsky, B., et al. (2013) Introductory Statistics, Openstax College.
Larsen, R. J. and Marx, M. L. (2011) An Introduction to Mathematical Statistics and Its
Applications, Pearson Education
Banking and FinanceCourse Code:
153400100
Unit value:
1
Year of study:
Year 2
Taught in:
Full YearThis course teaches the principles of finance in the context of advanced capitalist economies, less developed countries, countries in the process of transformation from central planning, and the international financial system. Topics covered include:
monetary policy,
foreign exchange and international debt,
credit allocation,
financial liberalisation,
the role of financial institutions in economic development.
Prerequisites15 340 0003 - Introduction to Economic Analysis
Objectives and learning outcomes of the courseOn successful completion of this course, you will understand the basic concepts used in economics and some of the controversies surrounding them.
Method of assessment
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Assessment weighting: Exam 80% / Coursework 20%. Resubmission of coursework regulations do not apply to this course.
Suggested reading
Preliminary Reading:
Mishkin F The Economics of Money, Banking, and Financial Markets, 10th ed. Pearson 2001
Heffernan, S. 2005. Modern Banking, Chichester: Wiley.
Lewis MK and Mizen PD Monetary Economics Oxford University Press 2000.
Toporowski, J. ‘Why the World Economy Needs a Financial Crash’ and Other Critical Essays
on Finance and Financial Economics Anthem Press 2010
Howells P. and Bain K. The Economics of Money and Finance, 4th ed. Pearson 2008.
Jones, C. P., Investments: Principles and Concepts, 11th ed, Wiley, 2009.
Corrado, C. J. and B. D. Jordan, Fundamentals of Investments – Valuation and Management,
3e, Mc Graw-Hill, 2005
Bodie, Z., Kane, A and A. Marcus, Essentials of Investments 6e, McGraw-Hill, 2005
EconometricsCourse Code:
153400103
Unit value:
1
Year of study:
Year 2
Taught in:
Full YearThis course introduces statistical inference and leads to competence in multivariate econometric techniques. It covers the problems of regression analysis and the treatment of categorical variables, which typically feature in the analysis of data from developing countries. Illustrations of the concepts covered in the course are taken from developing country experience.
This course is a prerequisite for Applied Econometrics. It is a core course for BSc Economics students.The aim of this course is to equip the students with the necessary skills, including both the acquisition of habits of thought and knowledge of the techniques of modern econometrics, required for applied research in development economics.
Prerequisites15 340 0121 - Quantitative Methods for Economists
Objectives and learning outcomes of the courseOn successful completion of this course, students will be able to:
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To deepen and broaden the students' knowledge and understanding of material needed for
empirical quantitative analysis of micro and macro data relevant to development issues,
building on the material covered in the second year intermediate econometrics course;
To cover the theory and practice of modern econometrics at a level appropriate for an
economics graduates, emphasizing application;
To teach the students the habits of thought, knowledge and understanding to be able to carry
out good quality applied econometric research with confidence;
To develop the critical insight to appraise econometric results obtained by other researchers.
The course is application oriented. Accordingly, the emphasis will be on application of
techniques for policy analysis and will not be overly concerned with mathematical proofs.
To provide students with the ability to use STATA in an effective manner.
Develop the necessary skills needed for empirical research using modern econometrics
techniques in addressing development issues;
Through their computer based assignments they will be also trained in conducting research
using primary data;
To deepen their other transferable skills such as, written communication, teamwork, numeracy;
computer literacy, problem solving, and analytical skills.
Method of assessmentExam 100%.
Please note: BSc Economics students who fail Econometrics will be obliged to either swap to BSc Development Economics or take a leave of absence and re-take the exam the following year.
Suggested reading
Gujarati, D.N. Essentials of Econometrics, 3rd Edition, McGraw Hill, 2006
Dougherty, C. Introduction to Econometrics, 3rd Edition, Oxford University Press, 2007
Wooldridge, J. Introductory Econometrics: A Modern Approach, 4th Edition, Thomson/South-
Western, 2008
Banking and FinanceCourse Code:
153400100
Unit value:
1
Year of study:
Year 2
Taught in:
Full Year
![Page 7: Introduction to Quantitative Methods for Economists](https://reader036.vdocument.in/reader036/viewer/2022072113/5695d11e1a28ab9b0295386b/html5/thumbnails/7.jpg)
This course teaches the principles of finance in the context of advanced capitalist economies, less developed countries, countries in the process of transformation from central planning, and the international financial system. Topics covered include:
monetary policy,
foreign exchange and international debt,
credit allocation,
financial liberalisation,
the role of financial institutions in economic development.
Prerequisites15 340 0003 - Introduction to Economic Analysis
Objectives and learning outcomes of the courseOn successful completion of this course, you will understand the basic concepts used in economics and some of the controversies surrounding them.
Method of assessmentAssessment weighting: Exam 80% / Coursework 20%. Resubmission of coursework regulations do not apply to this course.
Suggested reading
Preliminary Reading:
Mishkin F The Economics of Money, Banking, and Financial Markets, 10th ed. Pearson 2001
Heffernan, S. 2005. Modern Banking, Chichester: Wiley.
Lewis MK and Mizen PD Monetary Economics Oxford University Press 2000.
Toporowski, J. ‘Why the World Economy Needs a Financial Crash’ and Other Critical Essays
on Finance and Financial Economics Anthem Press 2010
Howells P. and Bain K. The Economics of Money and Finance, 4th ed. Pearson 2008.
Jones, C. P., Investments: Principles and Concepts, 11th ed, Wiley, 2009.
Corrado, C. J. and B. D. Jordan, Fundamentals of Investments – Valuation and Management,
3e, Mc Graw-Hill, 2005
Bodie, Z., Kane, A and A. Marcus, Essentials of Investments 6e, McGraw-Hill, 2005
Introduction to economic analysisCourse Code:
153400003
Unit value:
1
Year of study:
Year 1
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Taught in:
Full YearThis is a first year covering both microeconomics and macroeconomics. It introduces analytical techniques employed by economists in understanding and explaining the behaviour of markets, consumers and firms at the micro level; and employment, inflation, interest rates and the balance of payments and growth at the macro level. Emphasis is given to applications of these ideas in the main to the UK economy and where appropriate to the economies of the Third World.
Introduction to Economic Analysis is a compulsory course and core course for all students studying economics.
Objectives and learning outcomes of the courseOn successful completion of the course, students will be able to:
Identify the analytical techniques used by economists and compare their relative merits
Show how the behaviour of the markets, consumers and firms at the microeconomic level can
be explained through analytical techniques
Assess how analysis is used to illustrate employment, inflation, interest rates and the balance
of payments and growth at the macroeconomic level
Method of assessmentAssessement weighting: Exam 80% / Coursework 20%. Resubmission of coursework regulations do not apply to this course.
Suggested reading
Snowdon, B., H. Vane and P. Wynarczyk. A Modern Guide to Macroeconomics : an
Introduction to Competing Schools of Thought (E. Elgar Pub, 1994).
Varian, H. R, . Intermediate Microeconomics : a Modern Approach (5th ed. W.W. Norton & Co.,
1999)