module handbook - wiwi.uni-konstanz.de · the module code, e.g. mie / phd for modules from subject...

University of Konstanz Faculty of Law, Economics, and Politics

Department of Economics

Module Handbook

for the

Master’s Programme in Economics

August 2016

2

Master's Programme in Economics

I. Competences A) Subject-specific competences

A1) Broadening of knowledge

In the three core lectures on „Quantitative Economics“ taught in the first semester, the

students acquire a deep understanding of modern methods and topics from the three pillars of economics: microeconomics, macroeconomics, and econometrics. They are able to assess the advantages and the drawbacks of different methods. Moreover, they can evaluate the positions held by members of different schools of economic thought critically.

A2) Deepening of knowledge

In the subsequent semesters, the students select special subjects, in which they deepen

their skills further. In a seminar, but also in other courses where students work independently or in teams, they develop research questions and analyze these questions with the help of the tools acquired before.

B) Generic competences

The students are in a position to quickly and independently delve into new subjects. They can apply the methods acquired during the Master's program, e. g. from econometrics, to solve problems from other fields. The students are able to present their findings in English. They can enter into a critical dialogue with others about the underlying premises and the methods used to derive the findings.

II. Learning outcomes

− In written exams, students prove that they have an in-depth understanding of the core

concepts in economics and that they can apply these concepts to solve simple problems in a short time.

− In tutorials, students show that their knowledge and skills enable them to also solve

more complex tasks.

− In tutorials, students work successfully in teams. They present their results to other students, who discuss these results critically.

− In advanced classes, students write short essays that satisfy scientific standards and

reveal a detailed knowledge in special areas.

− In seminars, students show that they can grasp the essence of scientific papers and can organize the insights distilled from the literature in a well-structured manner. They communicate these insights to their fellow students and respond adequately to critical questions from the audience. Moreover, they formulate critical questions about other students' presentations.

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− The students write seminar papers on topics of their choice. For this purpose, they draw on the modern scientific literature and relate the findings in a meaningful way. They develop own ideas for small research projects and design approaches to solving these problems.

− In the Master's thesis, students demonstrate their ability to formulate more extensive

research questions and to address them with the help of modern tools from economics. They organize the time period of several months for the preparation of the thesis independently and effectively. They are successful in developing a clear and logical structure for an extensive research project. They critically assess the applied methods and premises and derive convincing conclusions.

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Contents 1 Introduction .............................................................................................................................................. 7

Curriculum of the Master’s Programme in Economics ............................................................................... 8

Subject Areas ............................................................................................................................................... 9

Subject Area 1: Quantitative Economics ................................................................................................. 9

Subject Area 2: Econometrics and Applied Economics ............................................................................ 9

Subject Area 3: International Financial Economics .................................................................................. 9

Subject Area 4: Macroeconomics and International Economics ............................................................ 10

Subject Area 5: Microeconomics and Decision Making ......................................................................... 10

Subject Area 6: Public Economics .......................................................................................................... 10

Module List ............................................................................................................................................ 11

2 Subject Area 1: Quantitative Economics ................................................................................................ 15

QE: Advanced Econometrics .................................................................................................................. 15

QE: Advanced Macroeconomics I ......................................................................................................... 16

QE: Advanced Macroeconomics I (cont.) .............................................................................................. 17

QE: Advanced Microeconomics ............................................................................................................ 18

3 Subject Area 2: Econometrics and Applied Economics .......................................................................... 19

EAE: Applied Time Series Analysis ........................................................................................................ 19

EAE / PhD: Microeconometrics ............................................................................................................. 20

EAE / PhD: Advanced Time Series Analysis ........................................................................................... 21

EAE / PhD: Advanced Time Series Analysis (cont.) ............................................................................... 22

EAE: Empirical Labour Economics ......................................................................................................... 23

EAE / IFE: Financial Econometrics ......................................................................................................... 24

EAE / PhD: Topics in Advanced Econometrics ...................................................................................... 25

EAE: Probability Theory and Statistical Inference ................................................................................ 26

EAE: Probability Theory and Statistical Inference (cont.) ..................................................................... 27

EAE S: Seminar in Econometrics and Applied Economics..................................................................... 28

4 Subject Area 3: International Financial Economics ................................................................................ 29

IFE / MIE: International Finance ........................................................................................................... 29

IFE: Portfolio Management ................................................................................................................... 30

IFE: Accounting Theory ......................................................................................................................... 31

IFE: Accounting Theory (cont.) .............................................................................................................. 32

IFE / PhD: Numerical Option Pricing ..................................................................................................... 33

IFE : Numerical Option Pricing (cont.)................................................................................................... 34

5

EAE / IFE: Financial Econometrics ..................................................................................................... 35

IFE: Bank Management ......................................................................................................................... 36

IFE: Risk Management ........................................................................................................................... 37

IFE / MIE: International Monetary Economics...................................................................................... 38

IFE: Behavioural Finance ....................................................................................................................... 39

IFE: Audit Theory ................................................................................................................................... 40

IFE S: Seminar in International Financial Economics ............................................................................ 42

5 Subject Area 4: Macroeconomics and International Economics ............................................................ 43

IFE / MIE: International Monetary Economics...................................................................................... 44

MIE: International Macroeconomics .................................................................................................... 45

IFE / MIE: International Finance ........................................................................................................... 46

MIE / PhD: Topics in Advanced Macroeconomics ................................................................................ 47

MIE / PhD: Computational Economics .................................................................................................. 48

MIE: The Labour Market and the Business Cycle ................................................................................. 49

MIE: Labour Market Search .................................................................................................................. 50

MIE S: Seminar in Macroeconomics and International Economics ...................................................... 51

6 Subject Area 5: Microeconomics and Decision Making ......................................................................... 52

MDM: Advanced Microeconomics II ..................................................................................................... 52

MDM: Behavioural Economics .............................................................................................................. 53

MDM: Behavioural Economics (cont.) .................................................................................................. 54

MDM: Organisational Behaviour .......................................................................................................... 55

MDM / PhD: Topics in Advanced Microeconomics .............................................................................. 56

MDM / PE: Political Economy: Theory and Experiments...................................................................... 57

MDM / PE: Law and Economics ............................................................................................................ 58

MDM / PE / PhD: Poverty, Inequality and Income Distribution ........................................................... 59

MDM S: Seminar in Microeconomics and Decision making ................................................................. 60

7 Subject Area 6: Public Economics ........................................................................................................... 61

PE: Economics of Taxation .................................................................................................................... 61

PE: Political Economy ............................................................................................................................ 62

PE: Political Economy (cont.) ................................................................................................................ 63

PE: Health Economics ............................................................................................................................ 64

MDM / PE: Law and Economics ............................................................................................................ 65

PE / PhD: Economics of Education ........................................................................................................ 66

PE / PhD: Economics of Education (cont.) ............................................................................................ 67

MDM / PE / PhD: Poverty, Inequality and Income Distribution ........................................................... 68

MDM / PE: Political Economy: Theory and Experiments...................................................................... 69

6

PE S: Seminar in Political Economy ....................................................................................................... 70

8 Master’s Thesis ....................................................................................................................................... 71

MT: Master’s Thesis .............................................................................................................................. 71

MT: Master’s Thesis (cont.)................................................................................................................... 72

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1 Introduction

This handbook provides outlines of the modules offered for the Master’s Programme in Economics. Aside from the Master’s thesis, the modules are:

• courses comprising lectures and tutorials • courses comprising lectures • seminars.

The modules are grouped under the subject area to which they belong: 1. Quantitative Economics 2. Econometrics and Applied Economics 3. International Financial Economics 4. Macroeconomics and International Economics 5. Microeconomics and Decision Making 6. Public Economics.

Each module outline gives the following information:

Module Code and Title

The module code comprises the subject area prefix, e.g. QE for Subject Area 1: Quantitative Economics. Modules for Track A (fast track) are indicated by “PhD” in the module code, e.g. MIE / PhD for modules from Subject Area 4: Macroeconomics and International Economics. The module title gives the name of the module Applicability Specifies the subject area to which the module belongs.

Credits Each module has a credit value based on the student’s workload required to successfully complete the module, in accordance with the European Credit Transfer and Accumulation System (ECTS). To complete the Master’s Programme, 120 credits in total are required and 30 credits per semester should be accumulated. Track A students, aside from the Master’s thesis (20 credits), need to obtain 100 credits in taught modules (courses and seminars). Track B and C students, aside from the Master’s thesis (30 credits), need to obtain 90 credits in taught modules (courses and seminars).

Learning Outcomes Describe what students should be able to do on completing the module. Content of Teaching Describes the topics covered in the module. Lecturer Chair responsible for the module. Teaching Methods / Hours per Week

The type of module (a course comprising lectures, with or without tutorials, or a seminar) and its hours of tuition per week.

Workload The workload indicates the time students typically need to spend to successfully complete the module.

Recommended Background

Indicates whether specific prior knowledge would be beneficial for completing the module.

Language The modules of the Master’s Programme are taught in English. Frequency Offered The semester in which the module is taught (winter semester, summer semester

or both winter and summer semester). Recommended Semester

Specifies in which semester it is recommended to take the module.

Compulsory / Optional

Informs whether the module must be taken to complete the Master’s Programme. This applies, for instance, to Subject Area 1: Quantitative Economics. All modules of this subject area must be taken. Track A or B students, majoring in one of the subject areas (2 to 6), must take the two specified compulsory modules (courses), two optional modules and one seminar from the selected subject area.

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Curriculum of the Master’s Programme in Economics

Track A: Fast Track to a PhD ECTS Track B: Specialization or Track C: Generalization ECTS Semester

1 All 3 compulsory modules from the subject area Quantitative Economics:

• Advanced Econometrics • Advanced Macroeconomics I • Advanced Microeconomics I.

10 10 10

All 3 compulsory modules from the subject area Quantitative Economics:

• Advanced Econometrics • Advanced Macroeconomics I • Advanced Microeconomics I.

On application, one compulsory module can be taken in the 3rd semester.

10 10 10

30 30 Semester

2

Semester 3

Modules to the value of 30 ECTS, comprising courses totalling 24 ECTS and 1 seminar à 6 ECTS, from the following optional subject areas:

• Econometrics and Applied Economics • International Financial Economics • Macroeconomics and International

Economics • Microeconomics and Decision Making • Public Economics.

Students wishing to major in a subject area must take the 2 compulsory modules, 2 optional modules and 1 seminar from the selected subject area.

Each semester modules to the value of 30 ECTS, comprising courses totalling 24 ECTS and 1 seminar à 6 ECTS, from the following optional subject areas:

• Econometrics and Applied Economics • International Financial Economics • Macroeconomics and International

Economics • Microeconomics and Decision Making • Public Economics.

Track B students, majoring in a subject area, must take the 2 compulsory modules, 2 optional modules and 1 seminar from the selected subject area.

30 3 modules (courses) from the Doctoral Programme in Quantitative Economics and Finance à 10 ECTS, including 2 of the following modules:

• Topics in Advanced Econometrics • Topics in Advanced Microeconomics • Topics in Advanced Macroeconomics.

30 60 Semester

4 1 module (course) from the Doctoral Programme Master's thesis (3 months). If majoring in a subject area, the Master's thesis must be from the selected subject area.

10 20

Master's thesis (4 months). For Track B students, majoring in a subject area, the Master's thesis must be from the selected subject area.

30 30 Total 120 120

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Subject Areas Subject Area 1: Quantitative Economics

The objective of the compulsory subject area “Quantitative Economics” is to give students an advanced proficiency in economic theory and econometrics. A solid theoretical-methodological background is essential for advanced studies in economics. In the area of economic theory, modules are offered in microeconomics and macroeconomics. The emphasis here is on conveying methodological concepts, e.g. game theory and general equilibrium theory and their applications to economic issues. The module in econometrics gives students a background in estimation theory and its applications. The theoretical-methodological education in Bachelor’s programmes in economics differs considerably among universities, both nationally and internationally. Graduates of economics often lack an adequate education in quantitative economics. Graduates with a non-economics background typically have an intensive methodological background, but lack a substantive background in economics. These compulsory modules have been designed to accommodate the heterogeneous backgrounds of first-semester Master’s students and to bring the students to the same level. The subject area “Quantitative Economics” provides the foundation for the modules of the optional subject areas.

Subject Area 2: Econometrics and Applied Economics

The overarching goal of this subject area is to make students experts in analysing and understanding complex economic issues on the basis of real world data. To achieve this objective, students are trained in the functioning and use of advanced econometric methods for the analysis of economic and financial data. This involves training in the statistical analyses of estimation and inference for models relevant to microeconometrics, macroeconometrics and financial econometrics, as well as making students aware of the opportunities and limitations in applying these tools to real world data. The modules in applied economics centre around empirical research in labour economics, public economics and financial economics using these econometric methods and emphasise the specific aspects of empirical research in these fields. Students majoring in this subject area will be well prepared to undertake their own empirical research, either for their PhD or for empirical investigations of the highest academic standards in non-university establishments, such as empirical research institutes, the consulting business, international institutions, ministries and NGOs, etc.

Subject Area 3: International Financial Economics

The purpose of this subject area is to examine key issues in international financial economics, focusing on theoretical, institutional, policy, and empirical aspects. In risk management, an understanding of the tools for analysing and managing risks is provided. Aside from the theoretical analysis of static and dynamic models of risk management, different approaches for managing interest rate risks are presented at the applied level. A further main component of this subject area is portfolio management. Aside from basic concepts, new concepts are introduced, including minimal versus maximal market rationality, inferring market consensus probabilities from observed prices, equilibrium sharing rules, and behavioural bias in human decision making. Optional modules concentrate on financial econometrics, managerial accounting, finance, bank management and international monetary economics.

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Subject Area 4: Macroeconomics and International Economics

The objective of this subject area is to give students a comprehensive overview of macroeconomic modelling and its quantitative applications. At the centre are dynamic stochastic general equilibrium models, which are applied to the study of traditional macroeconomic issues, such as economic growth, business cycles, consumption and asset prices, employment and unemployment, money and inflation, and international macroeconomics. Starting from the benchmark neoclassical macroeconomic model, successive limiting assumptions are cancelled and extensions to several issues, such as heterogeneity, market incompleteness and market frictions, are incorporated. The modelling of exchange rates and their policy implications are of central importance in the area of international monetary economics. The compulsory modules for majoring in this subject area include advanced macroeconomics and international monetary economics. Optional modules cover economic growth and development, international macroeconomics, the labour market and the business cycle and topics in macroeconomics.

Subject Area 5: Microeconomics and Decision Making

The aim of this subject area is to familiarise students with the study of economic behaviour deriving from individual behaviour. It is based on models of human decision making. These not only include the standard model assuming rationality and selfishness, but also models of time inconsistent behaviour, non-standard models of risk preferences or models of social preferences. In order to understand real world phenomena, such as bubbles in financial markets or involuntary unemployment, the implications of these models are analytically investigated. Furthermore, empirical, in particular, experimental studies allow for the testing and enhancing of the models. Students learn the major models in the field, as well as the theoretical, empirical and experimental tools to apply, analyse and test the models. Students majoring in this subject area will become experts in human economic decision making from a theoretical, as well as from an empirical point of view. This knowledge can be used, for instance, by companies in general and business consultancies in particular. Furthermore, the methodology learned also provides a good basis for graduates to undertake their own research in an academic career.

Subject Area 6: Public Economics

The goal of this subject area is to make students acquainted with the advanced economic analyses of public sector activities. The scope of topics in the compulsory modules comprises methods of positive and normative public economics. Normative public economics deals with questions of optimal income and commodity taxation within a general equilibrium framework. Positive public economics or political economy, in contrast, is based on the behavioural postulate that political agents are rational utility maximisers and examines the consequences of this assumption for government activities, such as the provision of public and private goods, the regulation of markets and macroeconomic stabilisation policies. Optional modules concentrate on specific policy issues, e.g., taxation, education, health care.

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Module List

Subject Area 1: Quantitative Economics

Subject Area 2: Econometrics and Applied Economics

Module Code

Module Titel Lecturer Compulsory Hours ECTS Semester Offered

Recommended Semester

Work-load Lecture Tutorial

QE Advanced Econometrics Chair of Economics

and Econometrics 3 2 10 WS WS 1 300

QE Advanced Macroeconomics I Chair of

International and

Monetary

Macroeconomics, Junior Professor-

ship in

Macroeconomic

Theory

3 2 10 WS WS 1 300

QE Advanced Microeconomics I Junior Professor-

ship in Public

Economics, Chair

of Economic

Theory (Micro-

economics)

3 2 10 WS WS 1 300

Module Code




EAE Applied Time Series Analysis Chair of Statistics

and Econometrics,

Department of

Mathematics &

Statistics

3 1 8 SS 2 240

EAE / PhD

Microeconometrics Chair of Economics

and Econometrics 3 1 8/10 SS 2 240 /

300 EAE / Advanced Time Series Analysis Chair of Statistics

and Econometrics 3 1 8/10 WS 3 240 /

300 EAE Empirical Labour Economis Junior

Professorship of

Educational and

Labour Economics

3 1 8 SS 2 240

EAE / IFE

Financial Econometrics Chair of Economics

and Econometrics 2 2 8 WS 3 240

EAE / PhD

Topics in Advanced Econometrics

Chair of Economics

and Econometrics,

Department of

Mathematics and

Statistics

2 1 8/10 WS 3 240 / 300

EAE Probability Theory and Statistical Inference

Department of

Mathematics &

Statistics

2 2 8 WS 3 240

EAE S Seminar in Econometrics and Applied Economics

Chair of Economics

and Econometrics 2 6 WS/SS 2/3 180

12

Subject Area 3: International Financial Economics

Subject Area 4: Macroeconomics and International Economics

Module Code




IFE / MIE

International Finance Chair of Finance

2 1 6 WS 3 180

IFE Portfolio Management Chair of Finance 2 1 6 WS 3 180 IFE Accounting Theory Chair of

Accounting 2 1 6 WS 3 180

IFE / PhD

Numerical Option Pricing Chair of Corporate

Finance 2 1 6/10 WS 3 180 /

300 EAE / IFE

Financial Econometrics Chair of Economics

and Econometrics 2 2 8 WS 3 240

IFE Bank Management Chair of Corporate

Finance 2 1 6 SS 2 180

IFE Risk Management Chair of Finance 3 1 8 SS 2 240 IFE / MIE

International Monetary Economics

Chair of

International

Economics and

Political Economy

3 1 8 SS 2 240

IFE Behavioural Finance Chair of Corporate

Finance 2 1 6 SS 2 180

IFE Audit Theory Junior Professor-

ship in Accounting 2 1 6 SS 2 180

IFE S Seminar in International Financial Economics

Chair of Economics

and Econometrics,

Chair of Finance,

Chair of Corporate

Finance

2 6 WS/SS 2/3 180

Module Code




MIE Advanced Macroeconomics II Chair of Economic

Theory, Junior

Professor-ship in

Macroeconomic

Theory

2 1 6 SS 2 180

IFE / MIE

International Monetary Economics

Chair of

International

Economics and

Political Economy

3 1 8 SS 2 240

MIE International Macroeconomics Chair of

International

Economics and

Political Economy

3 1 8 WS 3 240

IFE / MIE

International Finance Chair of Finance

2 1 6 WS 3 180

MIE / PhD

Topics in Advanced Macroeconomics

Junior Professor-

ship in Family

Economics

2 1 6/10 WS 3 180 / 300

MIE / PhD

Computational Economics Junior Professor-

ship for Dynamic

Programming /

Dynamic Choice

2 2 8 WS 3 240

MIE The Labour Market and the Business Cycle

Junior Professor-

ship in

Macroeconomic

Theory Details

2 1 6 WS/SS 2/3 180

13

Subject Area 5: Microeconomics and Decision Making

Subject Area 6: Public Economics

MIE / PhD

Labour Market Search Visiting Professor

3 0 6 SS 2 180

MIE S Seminar in Macroeconomics and International Economics

Chair of

International and

Monetary

Macroeconomics

2 6 WS/SS 2/3 180

Module Code




MDM Advanced Microeconomics II Chair of Economic

Theory

(Microeconomics)

2 1 6 SS 2 180

MDM Behavioural Economics Chair of Applied

Research in

Economics

2 1 6 WS 3 180

MDM Organisational Behaviour Junior Professor-

ship in Personnel

Economics

2 1 6 SS 2 180

MDM / PhD

Topics in Advanced Microeconomics

Chair of Economic

Theory

(Microeconomics)

2 1 6/10 WS 3 180 / 300

MDM / PE

Political Economy: Theory and Experiments

Junior

Professorship in

Behavioral

Economics

2 1 6 WS 3 180

MDM / PE

Law and Economics Chair of Economic

Theory

(Microeconomics)

2 1 6 WS 3 180

MDM / PE / PhD

Poverty, Inequality and Income Distribution

Junior

Professorship in

Public Economics

3 6/10 WS 3 180 / 300

MDM S Microeconomics and Decision Making

Chair of Applied

Research in

Economics, Chair

of Political

Economy

2 6 WS/SS 2/3 180

Module Code




PE Economics of Taxation Chair of Public

Economics 3 1 8 SS 2 240

PE / PhD

Political Economy Chair of

Internatioanl and

Monetary

Macroeconomics,

Chair of Political

Economy

3 1 8/10 SS 2 240 / 300

PE Health Economics Chair of Economic

and Social Policy 2 1 6 WS 3 180

MDM / PE

Law and Economics Chair of Economic

Theory

(Microeconomics)

2 1 6 WS 3 180

PE / PhD

Economics of Education Chair of Public

Economics 4 8/10 WS 3 240 /

300 MDM / PE /

Poverty, Inequality and Income Distribution

Junior

Professorship in 3 6/10 WS 3 180 /

300

14

PhD Public Economics

MDM / PE

Political Economy: Theory and Experiments

Junior

Professorship in

Behavioral

Economics

2 1 6 WS 3 180

PE S Seminar in Public Economics Chair of Political

Economy, Junior

Professor-ship in

Public Economics

2 6 WS/SS 2/3 180

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2 Subject Area 1: Quantitative Economics

Module Code / Title QE: Advanced Econometrics

Programme of Study MSc in Economics

Applicability Subject Area 1: Quantitative Economics

Credits 10

Duration 1 semester

Module Contribution to the Final Grade

8.3%

Module Grade Based on one mid-term exam (20 %), two take-home exams (20%) and a final exam (60%).

Learning Outcomes On completion of this module, students will be able to: • Demonstrate a sound understanding of econometric

estimation theory beyond the linear model • Demonstrate an awareness of major estimation methods

and testing principles for nonlinear econometric models • Programing with MatLab in order to understand the applied

aspects of estimation principles and to apply modern econometric estimators, which are not available in standard commercial software packages.

Content of Teaching • Fundamental of Regression Analysis

• Asymptotic theory • Instrumental variables • Maximum likelihood and Pseudo-ML • Generalized method of moments • Computer Intensive Methods • Shrinkage Estimation

Lecturer Chair of Economics and Econometrics

Teaching Methods / Hours per Week

lecture (3 hours), tutorial (2 hours)

Workload 300 hours

Type of Assessment one mid-term exam, two take-home exams, one final exam


Language English

Frequency Offered winter semester

Recommended Semester 1

Compulsory / Optional compulsory

16

Module Code / Title QE: Advanced Macroeconomics I



Credits 10

Duration 1 semester


8.3%

Module Grade Based on a final exam and homework assignments.

Learning Outcomes • On completion of this module, students will be able to demonstrate an understanding of modern macroeconomics and dynamic economic analysis

• develop techniques to solve dynamic optimisation problems • apply these methods to the study of various macroeconomic

issues, such as economic growth, business cycles, monetary policy, consumption and asset prices

Content of Teaching The course covers deterministic and stochastic dynamic general equilibrium modelling and their applications to macroeconomic issues. Analytical results and numerical solution techniques (dynamic programming, value-function iteration, and log-linearization) are discussed. 1. Dynamic programming 2. Value-function iteration 3. Log-linearization 4. Linear difference equations 5. The neoclassical growth model 6. Uncertainty in dynamic equilibrium models 7. Real business cycle theory 8. Dynamic models of money

Lecturer Chair of International and Monetary Macroeconomics



Workload 300 hours

Type of Assessment final exam, homework assignments


Language English


17

Module Code / Title QE: Advanced Macroeconomics I (cont.)


Compulsory / Optional Compulsory

18

Module Code / Title QE: Advanced Microeconomics



Credits 10

Duration 1 semester


8.3%

Module Grade Based on a midterm (20%) and a final written exam (80%).

Learning Outcomes On completion of this module, students will be able to use their knowledge of general equilibrium and game theory for understanding microeconomic analysis and following more advanced courses.

Content of Teaching The course has two parts. The first part covers general equilibrium theory, including both consumer and production theory, and ends with an introduction to the analysis of externalities and public goods. The second part concentrates on game theory, including both normal-form and extensive-form games.

Lecturer Chair of Economic Theory (Microeconomics) or Junior Professorship in Public Economics



Workload 300 hours

Type of Assessment a written exam

Recommended Background microeconomics at Bachelor’s level

Language English




19

3 Subject Area 2: Econometrics and Applied Economics

Module Code / Title EAE: Applied Time Series Analysis


Applicability Subject Area 2: Econometrics and Applied Economics

Credits 8

Duration 1 semester


5%. The exact contribution depends on the weighting according to credits.

Module Grade Based on a take-home exam (30%) and a written exam (70%).

Learning Outcomes On completion of this module, students will be able to: • Specify and estimate econometric models for time series

data • Use these models for forecasting • Apply these methods in practice using appropriate

computer programs • Understand and interpret the results from empirical

research papers in time series analysis.

Content of Teaching • Introduction and descriptive methods • Stationary stochastic processes (AR, MA, ARMA) • Estimation, specification and validation of ARMA models • Nonstationary processes (ARIMA, unit root tests) • Forecasting • ARCH and GARCH processes.

Lecturer Chair of Statistics and Econometrics


Lecture (3 hours), tutorial (1 hour)

Workload 240 hours

Type of Assessment take-home exam, written exam

Recommended Background Bachelor level econometrics courses

Language English

Frequency Offered summer semester


Compulsory / Optional Compulsory for majoring in Subject Area 2: Econometrics and Applied Economics, otherwise optional.

20

Module Code / Title EAE / PhD: Microeconometrics



Credits 10 (Track A), 8 (Track B or C)

Duration 1 semester


Track A: 8.3%. Track B and C: 5%. The exact contribution depends on the weighting according to credits.

Module Grade Based on two take-home exams (20 %) and a final exam (80 %).

Learning Outcomes On completion of this module, students will be able to: • Model the behavior of individuals, households and firms at

the micro level, on the basis of economic approaches and with the use of large scale data sets

• Identify under which conditions these models can be applied, interpret the estimation results and assess their quality

• Apply these methods in practice using STATA and MatLab.

Content of Teaching • Qualitative response models • Limited dependent variables • Duration models • Evaluation econometrics • Nonparametric Estimation



lecture (3 hours), tutorial (1 hour)

Workload 300 hours (Track A), 240 hours (Track B or C)

Type of Assessment two take-home exams, one final exam

Recommended Background QE: Advanced Econometrics

Language English



Compulsory / Optional Compulsory for majoring in Subject Area 2: Econometrics and Applied Economics, otherwise optional.

21

Module Code / Title EAE / PhD: Advanced Time Series Analysis




Duration 1 semester


Track A: Based on take-home exam (30%) and a final exam (70%). Track B: Based on take-home exam (30%), student presentation (10%), and a final exam (60%).

Module Grade Based on a final exam (100%).

Learning Outcomes On completion of this module, students will be able to: • Use a range of methods to analyse multiple time series data • Use and program standard econometric software to analyse

time series data • Critically discuss and interpret the results of empirical time

series related research papers.

Content of Teaching Emphasis is given on the vector autoregressive framework, which is very popular in empirical macroeconomics and finance. The course covers the analysis of stable vector autoregressive (VAR) models, as well as the statistical analysis of integrated and cointegrated variables. Further topics to be discussed include recent advances in structural VAR modelling, panel unit roots and cointegration, factor augmented VARs, time-varying parameters and Bayesian VARs. • Stable vector autoregressive (VAR) models • Integrated variables and cointegrated VAR models • Structural VARs and VECMs • Unit roots and cointegration in panels • Time-varying parameters and Bayesian VARs • Multivariate GARCH models.

Lecturer Chair of Statistics and Econometrics




Type of Assessment Track A: take-home exam and a final exam, Track B: student presentation, take-home exam, and a final exam.

Recommended Background QE: Advanced Econometrics, EAE: Applied Time Series Analysis

Language English

22

Module Code / Title EAE / PhD: Advanced Time Series Analysis (cont.)



Compulsory / Optional optional

23

Module Code / Title EAE: Empirical Labour Economics



Credits 8

Duration 1 semester



Module Grade Based on problem sets, a presentation and a final exam.

Learning Outcomes The objective of the course is to provide the student with a solid understanding of the literature in several important areas of labor economics and empirical approaches commonly used by labor economists

Content of Teaching • Empirical strategies in labour economics • Immigration • Human Capital • Labour supply • Discrimination

Lecturer Junior Professorship of Educational and Labour Economics



Workload 240 hours

Type of Assessment problem sets, a presentation, a final exam


Language English




24

Module Code / Title EAE / IFE: Financial Econometrics



Credits 8

Duration 1 semester


5%.The exact contribution depends on the weighting according to credits.

Module Grade Generally on one take-home exam (30%) and a final exam (70%).

Learning Outcomes On completion of this module, students will be able to: • Employ econometric methods to analyze financial data • Demonstrate a particular understanding of stochastic

processes in order to describe the dynamics of financial variables and their implications for estimating key concepts in finance

• To apply these methods in practice using MatLab

Content of Teaching • Properties of financial data • Forecasting in finance • Volatility models • Time varying correlations • Estimation of downward risks and extreme events • Systemic risk




Workload 240 hours

Type of Assessment take-home exam, final exam (1 1/2 hours)

Recommended Background QE: Advanced Econometrics, EAE: Applied Times Series Analysis

Language English

Frequency Offered Winter semester


Compulsory / Optional Optional

25

Module Code / Title EAE / PhD: Topics in Advanced Econometrics




Duration 1 semester



Module Grade Based on two presentations (30%) and a final paper (70%).

Learning Outcomes On completion of this module, students will be able to: • Demonstrate an understanding of computer intensive

econometric methods that allow for the estimation of complex structures, for which conventional parametric and nonparametric procedures are difficult to apply. These models either require nonparametric or semiparametric estimation or Monte Carlo integration methods

• To program and apply these methods • Write and present small research papers.

Content of Teaching • Nonparametric estimation • Simulation estimators • Bayesian estimation • Shrinkage estimation • Statistical learning.





Type of Assessment two presentations, one final exam


Language English



Compulsory / Optional May be taken as one of the compulsory topics modules of Track A, otherwise optional.

26

Module Code / Title EAE: Probability Theory and Statistical Inference



Credits 8

Duration 1 semester



Module Grade Weekly homework assignments, surprise quizzes, mid-term take-home exam, final exam

Learning Outcomes The course covers the major topics from probability theory and statistical inference that lay the grounds for econometric theory. It conveys a proper understanding of the basic theoretical concepts and ideas needed to work in applied and theoretical econometrics.

Content of Teaching The course gives an introduction to the basic mathematical foundations of probability theory and of statistical inference on a graduate level. The foundations of probability theory part of the course covers the following topics: • Basics of probability theory:

a. events, probability, conditional probability, independence, product spaces and completeness;

b. discrete and continuous random variables, probability distributions;

c. expectation, conditional expectation, conditional distributions;

d. moment generating and characteristic functions, their applications.

• Basics of asymptotic theory: a. convergence concepts, modes of convergence; b. limit theorems.

The statistical inference part of the course covers the following topics: 1. Random sample, properties; 2. Principles of data reduction, the sufficiency and the

likelihood principles; 3. Point estimation, finding and evaluating point estimators; 4. Interval estimation, finding and evaluating interval

estimators; 5. Estimation theory for parametric models: regression

models and least squares method.

Lecturer Department of Mathematics and Statistics

27

Module Code / Title EAE: Probability Theory and Statistical Inference (cont.)


lecture (2 hour), tutorial (2 hour)

Workload 240 hours

Type of Assessment Weekly homework assignments, surprise quizzes, mid-term take-home exam, final exam

Recommended Background Solid mastery of calculus, up to and including series, limits, partial differentiation, and multiple integration. Knowledge of these topics will be assumed and invoked freely. Basic knowledge of statistics is required.

Language English




28

Module Code / Title EAE S: Seminar in Econometrics and Applied Economics



Credits 6

Duration 1 semester



Module Grade Based on a presentation and a seminar paper

Learning Outcomes On completion of this module, students will be able to pursue independent research based on specific economic problems.

Content of Teaching Seminar participants develop and critically examine scientific economic literature within the context of the seminar.

Lecturer Chair of Economics and Econometrics, Chair of Statistics and Econometrics, Chair of Finance, Chair of Public Economics or Junior Professorship of Educational and Labour Economics


seminar (2 hours)

Workload 180 hours

Type of Assessment a presentation and a seminar paper

Recommended Background QE: Advanced Econometrics, EAE: Applied Time Series Analysis

Language English

Frequency Offered winter and summer semester

Recommended Semester 2 or 3

Compulsory / Optional One seminar in Subject Area 2: Econometrics and Applied Economics is compulsory for majoring in this subject area. For other students: optional.

29

4 Subject Area 3: International Financial Economics

Module Code / Title IFE / MIE: International Finance


Applicability Subject Area 3: International Financial Economics

Credits 6

Duration 1 semester




Learning Outcomes The goal of the course is to provide students with an understanding of the key working mechanisms of international capital markets and international financial decision making.

Content of Teaching The topics include drivers of exchange rates, financial instruments used in international financial markets, and international financing decisions.

Lecturer Chair of Finance



Workload 180 hours

Type of Assessment a final exam

Recommended Background lectures on Investments and Finance, Capital Market Theory

Language English



Compulsory / Optional Compulsory for majoring in Subject Area 3: International Financial Economics, otherwise optional.

30

Module Code / Title IFE: Portfolio Management



Credits 6

Duration 1 semester




Learning Outcomes On completion of this module, students will be able to: • Explain different financial investments and their

relevance in today’s economy • Apply their knowledge with respect to portfolio

optimisation and risk assessment • Solve complex problems relating to asset allocation

problems, which they face as investors.

Content of Teaching Economic concepts will first be developed with intuitive reasoning. Many results will be formally proven mathematically, and typically in the simplest mathematical context possible. Many concepts will be illustrated by algebraic or numerical examples.




Workload 180 hours


Recommended Background International Investments and Finance, Capital Market Theory

Language English



Compulsory / Optional Compulsory for majoring in Subject Area 3: International Financial Economics, otherwise optional.

31

Module Code / Title IFE: Accounting Theory



Credits 6

Duration 1 semester



Module Grade Based on a presentation and a final exam.

Learning Outcomes On completion of this module, students will be able to: • Demonstrate an understanding of the agency conflicts

between managers and owners and between owners and creditors; understand how financial reporting can mitigate these conflicts

• Describe the role of financial reporting in the context of capital markets and management’s incentives regarding earnings management

• Explain the institutional setting of financial reporting, auditing, and corporate governance

• Understand how “earnings quality” and “value relevance” can be empirically measured

• Understand game-theoretic models related to problems in the field of accounting and auditing

• Critically assess important papers in the field of financial accounting.

Content of Teaching Problems in the field of financial accounting and auditing are discussed on the basis of analytical, empirical and experimental studies. The lecture covers the following topics: the role of financial accounting, the preparers’ incentives regarding earnings management, financial reporting and the capital market (decision-usefulness of accounting information, information efficiency, value relevance of accounting information), incentive-usefulness of accounting information, the effects of voluntary vs. mandatory disclosures, the role of auditing, auditor independence, and the effects of auditor liability.

Lecturer Chair of Accounting



32

Module Code / Title IFE: Accounting Theory (cont.)

Workload 180 hours

Type of Assessment one presentation in class (30 minutes), one final exam (1 1/2 hours)

Recommended Background A basic knowledge of bookkeeping; a thorough knowledge of financial accounting according to the International Financial Accounting Standards (IFRS) and the German Commercial Law (HGB); a working knowledge of contract theory and applied game theory; a basic knowledge of econometrics; a basic knowledge of experimental economics.

Language English




33

Module Code / Title IFE / PhD: Numerical Option Pricing




Duration 1 semester



Module Grade Final exam (100%)

Learning Outcomes At the end of the course, students will

• know the major specifications of options traded on exchanges or over the counter

• be proficient in programming efficient MATLAB codes • know the strength and weaknesses of Trees and Monte

Carlo Simulation • choose the best methods to price a given option • be able to numerically price a wide range of options • know how to compute Value-at-Risk of option portfolios • understand the dynamic modeling of interest rates • know how to price interest-rate options

Content of Teaching This course is on the numerical valuation of a wide range of securities, such as common stocks, junior and senior bonds, convertible bonds, plain-vanilla options, exotic options, swap options, employee stock options, structured products, and interest-rate derivatives. The course focuses on the valuation, via tree-based methods and Monte Carlo simulations, of the option component embedded in all of the above mentioned instruments. The course specifically addresses implementation issues in MATLAB. The structure of the course is as follows:

1. MATLAB and Programming 2. Tree-based Valuation Methods 3. Monte Carlo Simulation and Options 4. Quantitative Risk Management 5. Interest-Rate Derivatives

Lecturer Chair of Corporate Finance




Type of Assessment final exam

34

Module Code / Title IFE: Numerical Option Pricing (cont.)


Language English




35

Module Code / Title EAE / IFE: Financial Econometrics



Credits 8

Duration 1 semester


5%.The exact contribution depends on the weighting according to credits.

Module Grade Generally on one take-home exam (30%) and a final exam(70%).

Learning Outcomes On completion of this module, students will be able to: • Employ econometric methods to analyze financial data • Demonstrate a particular understanding of stochastic

processes in order to describe the dynamics of financial variables and their implications for estimating key concepts in finance

• To apply these methods in practice using MatLab

Content of Teaching • Properties of financial data • Forecasting in finance • Volatility models • Time varying correlations • Estimation of downward risks and extreme events • Systemic risk




Workload 240 hours

Type of Assessment take-home exam, final exam

Recommended Background QE: Advanced Econometrics, EAE: Applied Times Series Analysis

Language English

Frequency Offered Winter semester



36

Module Code / Title IFE: Bank Management



Credits 6

Duration 1 semester




Learning Outcomes On completion of this module, students will be able to: • Explain the history of banking and its relevance to today’s

economy • Apply their knowledge with respect to bank funding and risk

assessment • Solve complex problems relating to fixed income securities,

which the banks hold.

Content of Teaching The subject matter of this module is the organisation and accounting in banks. This is connected to the problem of how banks control their portfolios and how they make a profit. The details of asset and liability management are explained. A discussion of bank supervision is also included.




Workload 180 hours


Recommended Background lectures on Investments and Finance

Language English




37

Module Code / Title IFE: Risk Management



Credits 8

Duration 1 semester



Module Grade Based on a final exam (100%)

Learning Outcomes The goal of the course Risk Management is to enable students to describe the risk management process from the perspective of financial institutions as the process by which risk exposures are identified, measured, and controlled.

Content of Teaching Topics include the concepts of Value-at-Risk, Credit Risk as well as regulatory issues such as the Basel regulations.




Workload 240 hours

Type of Assessment Final exam


Language English




38

Module Code / Title IFE / MIE: International Monetary Economics



Credits 8

Duration 1 semester




Learning Outcomes On completion of this module, students will be able to analyse and address typical questions in international monetary economics.

Content of Teaching Traditional and modern macroeconomic models of open economies are developed to study the following topics: • The monetary model of exchange rates • Nominal price rigidities and the exchange rate • Monetary and fiscal policy under fixed and floating

exchange rates • Currency crises • The intertemporal approach to the current account • Monetary exchange rate models with maximising

Individuals. In addition, empirical evidence and case studies are used to illustrate the concepts and theories.

Lecturer Chair of International Economics and Political Economy



Workload 240 hours

Type of Assessment a presentation and a final exam


Language English




39

Module Code / Title IFE: Behavioural Finance



Credits 6

Duration 1 semester



Module Grade Final exam (100%)

Learning Outcomes This course aims at complementing and challenging the set of theories, concepts, and empirical findings traditionally taught in asset pricing (investments) and corporate finance. Upon successful completion of this course, students will

• understand differences between the traditional and the behavioral approach to finance

• have a solid knowledge of the main findings in all the three pillars of behavioral finance: o limits of arbitrage o relevant insights from (cognitive) psychology o empirical anomalies in finance

Content of Teaching This course will cover three areas:

1. psychological theories of information processing and decision making

2. empirical facts that challenge traditional financial models, 3. Behavioral Finance theories To reinforce the validity of certain psychological patterns, experiments in class will integrate traditional lecturing.




Workload 180 hours

Type of Assessment final exam

Recommended Background solid background in financial economics

Language English




40

Module Code / Title IFE: Audit Theory



Credits 6

Duration 1 semester



Module Grade Based on a presentation and participation in class (30%) and a final exam (70%).

Learning Outcomes On completion of this module, students will be able to: • Describe the functioning and the fundamental problems

of an audit • Explain the economic role of the audit in free and

regulated markets • Describe the interdependencies between audit strategy

and earnings management and analyze auditors’ and managers’ incentives within an auditor-client relationship

• Describe the interdependencies between audit strategy and investors’ litigation strategy and analyze optimal audit and litigation strategies dependent on different auditing standards

• Explain the occurrence of quasi rents, low balling, and fee cutting

• Apply different approaches to analyze quasi rents and auditors’ independence

Content of Teaching The main objective of the course is to analyse the economic role of the audit. Therefor the relationship between auditors and clients as well as the structure of the audit market is taken into account. The analysis is based primarily on theoretical models but empirical results are also considered.

Lecturer Junior Professorship in Accounting



Workload 180 hours

Type of Assessment presentation (30 min), participation in class and final exam

Recommended Background A basic knowledge of financial accounting; a working knowledge of applied game theory and contract theory; a basic knowledge of econometrics.

Language English

41




42

Module Code / Title IFE S: Seminar in International Financial Economics



Credits 6

Duration 1 semester






Lecturer Chair of Economics and Econometrics, Chair of Corporate Finance or Chair of Finance


seminar (2 hours)

Workload 180 hours


Recommended Background lectures on Investments and Finance

Language English



Compulsory / Optional One seminar in Subject Area 3: International Financial Economics is compulsory for majoring in this subject area. For other students: optional.

43

5 Subject Area 4: Macroeconomics and International Economics

Module Code / Title MIE: Advanced Macroeconomics II


Applicability Subject Area 4: Macroeconomics and International Economics

Credits 6

Duration 1 semester



Module Grade Based on homework (40%) and a final exam (60%).

Learning Outcomes On completion of this module, students will be able to: • Demonstrate an understanding of macroeconomics with

heterogeneity and frictions in labour and capital markets • Apply the modelling tools to address questions on labour

market dynamics, intergenerational redistribution and on the macroeconomic effects of fiscal policy.

Content of Teaching The course covers advanced topics in dynamic macroeconomics. Departing from the benchmark models of complete and frictionless markets, this course emphasises the role of heterogeneity and market imperfections. The first part develops overlapping-generation models which are useful for the analysis of social security and public debt. The second part covers market incompleteness and wealth inequality. The third part deals with search frictions in the labor market which are helpful to analyze unemployment and labor market dynamics.

Lecturer Chair of Economic Theory or Junior Professorship in Macroeconomic Theory


homework and a final exam

Workload 180 hours

Type of Assessment lecture (2 hours), tutorial (1 hour)

Recommended Background QE : Advanced Macroeconomics I

Language English



44

Module Code / Title IFE / MIE: International Monetary Economics



Credits 8

Duration 1 semester




Learning Outcomes On completion of this module, students will be able to analyse and address typical questions in international monetary economics.

Content of Teaching Traditional and modern macroeconomic models of open economies are developed to study the following topics:

• The monetary model of exchange rates • Nominal price rigidities and the exchange rate • Currency crises • The intertemporal approach to the current account • Monetary exchange rate models with maximizing

individuals • Monetary and fiscal policy in open economies

In addition, empirical evidence and case studies are used to illustrate the concepts and theories.




Workload 240 hours



Language English




45

Module Code / Title MIE: International Macroeconomics



Credits 8

Duration 1 semester




Learning Outcomes On completion of this module, students will be able to: • Analyse and address typical questions in international

macroeconomics • Use stochastic dynamic equilibrium models of open

economies to analyse the role of international financial markets

Content of Teaching Stochastic dynamic equilibrium models of open economies are studied to discuss the following topics: • International business cycles • International relative prices • International financial markets and international risk sharing • International debt and default. In addition, the course provides a brief introduction to numerical methods based on log-linear approximations.




Workload 240 hours


Recommended Background QE: Advanced Macroeconomics I

Language English




46

Module Code / Title IFE / MIE: International Finance



Credits 6

Duration 1 semester




Learning Outcomes The goal of the course is to provide students with an understanding of the key working mechanisms of international capital markets and international financial decision making.

Content of Teaching The topics include drivers of exchange rates, financial instruments used in international financial markets, and international financing decisions.




Workload 180 hours



Language English




47

Module Code / Title MIE / PhD: Topics in Advanced Macroeconomics



Credits 10 (Track A), 6 (Track B and C)

Duration 1 semester



Module Grade Based on homework (15%), student presentations (25%), midterm exam (25%) and a final assignment (35%).

Learning Outcomes On completion of this module, students will be able to: • Evaluate current research development in macroeconomics • Identify new and challenging research questions.

Content of Teaching The course covers recent research topics in advanced macroeconomics. The content of the course varies with current developments and with the interests of the lecturer.

Lecturer Junior Professorship in Family Economics



Workload 300 hours (Track A), 180 hours (Track B and C)

Type of Assessment homework, student presentations, midterm exam and a final i

Recommended Background QE: Advanced Macroeconomics I

Language English




48

Module Code / Title MIE / PhD: Computational Economics




Duration 1 semester



Module Grade

Learning Outcomes On completion of this module, students will be able to • Implement numerical solution algorithms for a variety of

economic applications • Select an appropriate method to solve complex, dynamic

optimization problems from a toolbox of different methods discussed in the course

• Develop their own research project, solve and analyze their results on the computer

Content of Teaching • Basic numerical techniques (e.g. root finding, optimization, function approximation, quadrature, differentiation)

• Numerical dynamic programming: value function iteration, linear and linear-quadratic methods, projection methods, stationary distributions

• Calibration and estimation

Lecturer Junior Professorship for Dynamic Programming / Dynamic Choice




Type of Assessment Problem Sets and Presentation


Language English




49

Module Code / Title MIE: The Labour Market and the Business Cycle



Credits 6

Duration 1 semester



Module Grade Written Exam (50%) and Take Home Assignment (50%)

Learning Outcomes At the end of the first part, students will be able to analyse qualitatively the impact of labour market policies. At the end of the second part, students will be able to simulate DSGE models in order to examine quantitatively the impact of labour market policy changes.

Content of Teaching The course consists of two parts. The first “theoretical” part introduces the job search and matching model following the textbook “Equilibrium Unemployment Theory” by C. Pissarides. We study the properties of the basic model and some of its various extensions (endogenous job destruction, on-the-job search etc.). The second “empirical” part evaluates the performance of the job matching model against the data. Using numerical software, we learn how to simulate the model at the business cycle frequencies. Then we compare the artificially generated time series against real data. Finally, we discuss how the basic model has to be modified such that it comes close to replicating the data.

Lecturer Junior Professorship in Macroeconomic Theory



Workload 180 hours

Type of Assessment written exam and take home assignment


Language English




50

Module Code / Title MIE: Labour Market Search




Duration 1 semester



Module Grade Take home exam

Learning Outcomes This course provides an in-depth analysis of the implications of search frictions for the labour market. The course will develop the main tools of the search and matching approach. The course will include both theoretical and empirical literature, and it is intended for postgraduate students interested in research in macro labour economics. At the end of the course students should have a working knowledge of the models used and a good sense of the open questions in those subject areas for which

Content of Teaching In this course we are going to study wage dispersion, labour market frictions and the role of human capital to explain long-run wage inequality of workers. We will then expand these tools to study business cycle dynamics of unemployment, job mobility and wage inequality.

Lecturer Visiting Professor


lecture (3 hours)


Type of Assessment Take home exam

Recommended Background Macroeconomics and Labour Economics undergraduate level

Language English




51

Module Code / Title MIE S: Seminar in Macroeconomics and International Economics



Credits 6

Duration 1 semester






Lecturer Junior Professorship for Dynamic Programming / Dynamic Choice or Junior Professorship in Family Economics


seminar (2 hours)

Workload 180 hours



Language English



Compulsory / Optional One seminar in Subject Area 4: Macroeconomics and International Economics is compulsory for majoring in this subject area. For other students: optional.

52

6 Subject Area 5: Microeconomics and Decision Making

Module Code / Title MDM: Advanced Microeconomics II


Applicability Subject Area: Microeconomics and Decision Making

Credits 6

Duration 1 semester



Module Grade Based on: a written exam (80%), exercises (20%)

Learning Outcomes On completion of this module, students will be able to: • Demonstrate an advanced understanding of game theory • Apply game-theoretic models to economic issues

Content of Teaching The course covers several topics in game theory, with a focus on auctions and market design. The main topics are: • Auction theory • Matching markets • Mechanism Design

Lecturer Chair of Economic Theory (Microeconomics)



Workload 180 hours


Recommended Background QE: Advanced Microeconomics I

Language English



Compulsory / Optional Compulsory for majoring in Subject Area 5: Microeconomics and Decision Making, otherwise optional.

53

Module Code / Title MDM: Behavioural Economics


Applicability Subject Area 5: Microeconomics and Decision Making

Credits 6

Duration 1 semester



Module Grade Based on a written exam (100%).

Learning Outcomes On completion of this module, students will be able to: • Explain and evaluate the major concepts of behavioural

economics • Know experimental evidence that demonstrates deviations

from the standard model.

Content of Teaching Behavioural economics investigates the limits of the standard assumptions of rationality and selfishness and presents alternative models. It uses empirical methods to establish robust deviations from standard behaviour, called anomalies, and it develops new alternative theories of human behaviour, which are better in line with the empirical evidence. The most important areas of behavioural economics are intertemporal, risky and social decision making. With respect to intertemporal decision making, we observe time inconsistent behaviour, which can be modelled using hyperbolic discounting. Decisions under risk display many anomalies. Prospect theory is the most prominent theory that captures these anomalies. A crucial element of prospect theory is loss aversion. Finally, social or non-selfish preferences have gained considerable attention in recent years.

Lecturer Chair of Applied Research in Economics



Workload 180 hours



Language English

54

Module Code / Title MDM: Behavioural Economics (cont.)



Compulsory / Optional Compulsory for majoring in Subject Area 5: Microeconomics and Decision Making, otherwise optional.

55

Module Code / Title MDM: Organisational Behaviour



Credits 6

Duration 1 semester


5%. The exact contribution depends on the weighting according to credits. 5%.

Module Grade Based on a written exam (100%). A written essay can substitute 50% of the exam (submission deadline: date of the exam)

Learning Outcomes On completion of this module, students will be able to understand the research methods and theoretical approaches of different social sciences (in particular behavioural economics) towards organisational behaviour.

Content of Teaching Research topics in Organisational Behaviour include, but are not limited to: • Incentive provision and motivation • The impact of motivation and perception • Individual decision making and group decision making • Organisational culture.

Lecturer Junior Professorship in Personnel Economics


lecture (2 hours) & tutorial (1 hour)

Workload 180

Type of Assessment a written exam. A written essay can substitute 50% of the exam (submission deadline: date of exam)


Language English




56

Module Code / Title MDM / PhD: Topics in Advanced Microeconomics




Duration 1 semester



Module Grade Based on: a presentation (25%), problem sets (25%) and a written exam (50%).

Learning Outcomes On completion of this module, students will be able to employ the research methods of microeconomics and game theory.

Content of Teaching Research topics in microeconomics and game theory, in particular: • Special classes of games and applications • Contract theory • Repeated games.



lecture (2 hours) and tutorial (1 hour)




Language English




57

Module Code / Title MDM / PE: Political Economy: Theory and Experiments



Credits 6

Duration 1 semester



Module Grade Based on a written exam (70%) and a presentation (30%).

Learning Outcomes On completion of this module, students are familiar with recent research in the field of political economy theory and have learnt how formal models can be tested empirically.

Content of Teaching We study various topics in political economy, such as voting and information aggregation, voter participation, lobbying or political campaigns. In addition we study methodological questions related to experiments.

Lecturer Junior Professorship in Behavioral Economics



Workload 180 hours

Type of Assessment a written exam and a presentation


Language English




58

Module Code / Title MDM / PE: Law and Economics



Credits 6

Duration 1 semester




Learning Outcomes On completion of this module, students will be able to discuss potential implications of changes in legal rules in areas such as tort liability, remedies for breach of contract and criminal law.

Content of Teaching In this course, the standard tools from microeconomics and game theory are applied to the analysis of law. Rather than focusing on any particular legal system, the class studies abstract legal rules from an economic viewpoint.




Workload 180 hours



Language English

Frequency Offered winter semester (irregular)



59

Module Code / Title MDM / PE / PhD: Poverty, Inequality and Income Distribution




Duration 1 semester



Module Grade Based on a written exam and papers presentation

Learning Outcomes On completion of this module, students will be able to understand and recognize the ethical implications and the trade-offs between different values (e.g. efficiency and equality) implied by different policy choices.

Content of Teaching The first part of the course will focus on the distribution of income, and study phenomena such as poverty and inequality. In this part of the course we will tackle new researches regarding multidimensionality in welfare, and study phenomena such as multidimensional poverty, deprivation and social exclusion.

The second part of the course will focus primarily on recent articles from academic journals in the field of social choice and poverty measurement. Students are expected to actively participate in the discussion of assigned readings and will also be assigned to lead class discussions including short presentations of the assigned readings. This part is also designed to prepare students to understand and/or conduct original research.

Lecturer Junior Professorship in Public Economics


lecture (3 hours)


Type of Assessment a written exam and papers presentation


Language English




60

Module Code / Title MDM S: Seminar in Microeconomics and Decision making



Credits 6

Duration 1 semester






Lecturer Chair of Economic Theory (Microeconomics), Junior Professorship in Personnel Economics, Junior Professorship in Behavioral Economics or Chair of Applied Research in Economics


seminar (2 hours)

Workload 180 hours



Language English



Compulsory / Optional One seminar in Subject Area 5: Microeconomics and Decision Making is compulsory for majoring in this subject area. For other students: optional.

61

7 Subject Area 6: Public Economics

Module Code / Title PE: Economics of Taxation


Applicability Subject Area 6: Public Economics

Credits 8

Duration 1 semester



Module Grade Based on a final exam (100%)

Learning Outcomes On completion of this module, students will be able to demonstrate an understanding of the advanced microeconomic theory of taxation.

Content of Teaching Within a general equilibrium framework we deduce the fundamental results of the theory of optimal commodity taxation (Ramsey) and of optimal income taxation (Mirrlees) and discuss the consequences for tax policy. Furthermore, we analyse the effects of income taxation on the holding of risky assets and on the finance decisions of companies. We also deal with tax evasion as a rational decision of economic agents and as a problem of tax policy. Finally, we extend the analysis of optimal taxation by using taxes to finance the provision of public goods, to internalise externalities and to mitigate market imperfections.

Lecturer Chair of Public Economics



Workload 240 hours



Language English



Compulsory / Optional Compulsory for majoring in Subject Area 6: Public Economics, otherwise optional.

62

Module Code / Title PE: Political Economy




Duration 1 semester



Module Grade Based on a homework assignment and a final exam.

Learning Outcomes On completion of this module, students will be able to : • understand the difficulties involved with the aggregation

of individual preferences • understand how policy decisions are made, and how they

can be improved • independently analyze issues in public choice theory and

social choice theory

Content of Teaching The first part of the course deals with social choice theory. Social choice theory takes a normative perspective and studies the aggregation of individual preferences to a social preference relation and how a social choice can be derived from the preferences of individuals. In particular, we consider several paradoxes and impossibility theorems (Condorcet cycles; liberal paradox, theorems by Arrow, Gibbard-Satterthwaite, etc.) but also some situations where aggregation with desirable properties can be achieved (May’s Theorem, Theorem of Arrow and Black, and others). In the second part of the course we study the formation of economic policy from a positive perspective. This part will cover the main mechanisms through which citizens influence policies. More specifically, we cover the basic median voter framework, the probabilistic voting model, the citizen-candidate model and some examples of lobbying models.

Lecturer Chair of Political Economy, Chair of International and Monetary Macroeconomics or Junior Professorship in Public Economics



Workload 300 hours

Type of Assessment Homework assignment and a final exam


63

Module Code / Title PE: Political Economy (cont.)

Language English



Compulsory / Optional Compulsory for majoring in Subject Area 6: Public Economics, otherwise optional.

64

Module Code / Title PE: Health Economics



Credits 6

Duration 1 semester



Module Grade Based on a presentation and a final exam

Learning Outcomes On completion of this module, students will be able to analyse health sector issues with the standard tools of economic theory.

Content of Teaching The scope of topics comprises the economic evaluation of life and health, the optimal design of health insurance, payment methods for hospitals and physicians, and the long-run development of health care expenditure.

Lecturer Chair of Economic and Social Policy



Workload 180 hours



Language English




65

Module Code / Title MDM / PE: Law and Economics



Credits 6

Duration 1 semester




Learning Outcomes On completion of this module, students will be able to discuss potential implications of changes in legal rules in areas such as tort liability, remedies for breach of contract and criminal law.

Content of Teaching In this course, the standard tools from microeconomics and game theory are applied to the analysis of law. Rather than focusing on any particular legal system, the class studies abstract legal rules from an economic viewpoint.




Workload 180 hours



Language English

Frequency Offered winter semester (irregular)



66

Module Code / Title PE / PhD: Economics of Education




Duration 1 semester




Learning Outcomes The goal of the course is that students learn about current topics in education economics, about education policy, about evaluation methods, and about (the reality of) how to do applied research. The course is also designed to prepare students to understand and/or conduct original research (including senior theses).

Content of Teaching This course consists of three modules. In module A students learn about economic issues related to education balancing theory with empirical results. In particular, the decision to invest in education and how this decision is affected by ability, family background, and other factors will be discussed. We go on to examine the returns to education for the individual as well as for the society at large. Finally, we investigate the process and the financing of educational production with respect to efficiency and equity in the education system. Many questions in the economics of education that are addressed in module A can ultimately only be answered empirically. This, however, requires sometimes complex empirical methods to distinguish causation from accidental association in the data. Thus, module B provides an introduction on research methods for empirical identification from an applied perspective. Finally, module C focuses primarily on articles from academic journals. Students are expected to actively participate in the discussion of assigned readings and will also be assigned to lead class discussions including short presentations of the assigned readings.

Lecturer Chair of Public Economics


lecture (4 hours)


67

Module Code / Title PE / PhD: Economics of Education (cont.)

Type of Assessment a written exam or term paper (optional for PhD students) and paper presentation.


Language English




68

Module Code / Title MDM / PE / PhD: Poverty, Inequality and Income Distribution




Duration 1 semester




Learning Outcomes On completion of this module, students will be able to understand and recognize the ethical implications and the trade-offs between different values (e.g. efficiency and equality) implied by different policy choices.

Content of Teaching The first part of the course will focus on the distribution of income, and study phenomena such as poverty and inequality. In this part of the course we will tackle new researches regarding multidimensionality in welfare, and study phenomena such as multidimensional poverty, deprivation and social exclusion.

The second part of the course will focus primarily on recent articles from academic journals in the field of social choice and poverty measurement. Students are expected to actively participate in the discussion of assigned readings and will also be assigned to lead class discussions including short presentations of the assigned readings. This part is also designed to prepare students to understand and/or conduct original research.

Lecturer Junior Professorship in Public Economics


lecture (3 hours)


Type of Assessment a written exam and papers presentation


Language English




69

Module Code / Title MDM / PE: Political Economy: Theory and Experiments



Credits 6

Duration 1 semester



Module Grade Based on a written exam (70%) and a presentation (30%).

Learning Outcomes On completion of this module, students are familiar with recent research in the field of political economy theory and have learnt how formal models can be tested empirically.

Content of Teaching We study various topics in political economy, such as voting and information aggregation, voter participation, lobbying or political campaigns. In addition we study methodological questions related to experiments.

Lecturer Junior Professorship in Behavioral Economics



Workload 180 hours

Type of Assessment a written exam and a presentation


Language English




70

Module Code / Title PE S: Seminar in Political Economy



Credits 6

Duration 1 semester






Lecturer Junior Professorship in Family Economics, Chair of Public Economics, Junior Professorship in Public Economics, Chair of Economic Theory (Microeconomics), Junior Professor-ship for Dynamic Programming / Dynamic Choice, Chair of Applied Research in Economics or Junior Professorship in Public Economics


seminar (2 hours)

Workload 180 hours


Recommended Background PE 2: Political Economy

Language English



Compulsory / Optional One seminar in Subject Area 6: Public Economics is compulsory for majoring in this subject area. For other students: optional.

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8 Master’s Thesis

Module Code / Title MT: Master’s Thesis


Applicability The topic of the Master’s thesis must stem from one of the optional subject areas.

Credits 20 ECTS (Track A), 30 ECTS (Tracks B and C)

Duration 3 months (Track A), 4 months (Tracks B and C)


16.67% (Track A), 25% (Tracks B and C)

Module Grade The average grade of the two assessments of the Master’s thesis

Learning Outcomes On completion of this module, students will be able to: • Develop a research proposal • Synthesise knowledge and skills previously acquired and

applied to an in-depth study • Establish links between theory and methods within their

area of study • Present the findings of their research in a coherent and

logically argued piece of writing that demonstrates competence in research and the ability to operate independently.

Content The aim of the Master’s thesis is to demonstrate that the student is in a position to independently analyse and assess a topic from the field of economics or business administration, within a prescribed time period and using scientifically recognised methods. Students select their own topic for the thesis in consultation with their supervisor. The topic must stem from one of the optional subject areas of the Master’s programme. For Track A or B students, majoring in a subject area, the topic of the thesis must stem from the subject area in which they are majoring.

Supervisor Each student selects a supervisor (assessor) for the thesis, who can be a professor or a junior professor of the Department of Economics. A further member of the Department’s faculty is allocated as the second assessor. One supervisor may be from another department.

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Module Code / Title MT: Master’s Thesis (cont.)

Teaching Methods The theoretical and methodological background knowledge for conducting a thesis is acquired through the compulsory and optional subject areas of the Master’s programme. Practise in the completion of research papers is obtained in the seminars of the Master’s programme.

Workload 600 hours (Track A), 900 hours (Tracks B and C)

Type of Assessment Master’s thesis

Recommended Background The relevant courses and seminars of the Master’s programme

Language English




module handbook - wiwi.uni-konstanz.de · the module code, e.g. mie / phd for modules from subject...

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