Economics

The course covers basic statistics for economics, finance and accounting students and assumes no prior knowledge. The two main areas of statistics covered are descriptive statistics and inferential statistics. The emphasis is on the application of the statistical techniques to problems relevant to these subjects.

The course is taught paying particular attention to the solving of economic problems and relating these to applications to the real world. There are two parts in the module. The first part covers mathematical techniques required to solve applied economic problems. It begins with a revision of basic algebraic methods. These ideas are then further developed to cover more advanced mathematical concepts including linear and non-linear functions; single variable calculus and calculus of several variables. The second part covers basic statistical methods used by economists and other social scientists. This will include data presentation, descriptive statistics, basic regression analysis, time series and elementary probability theory. Students will also be taught how to use Excel to perform basic statistical analysis.

The course opens with a brief tour of the global economy. This is followed by a discussion of the meaning and measurement of the main macroeconomic variables: output, unemployment, inflation and growth. The goods and financial markets and the concept of macroeconomic equilibrium are introduced. The IS/LM model is used to analyse the effectiveness of fiscal and monetary policy in the medium term. Aspects of the labour market are then considered followed by the introduction of the aggregate demand and aggregate supply model. The final third of the course is devoted to a discussion of factors contributing to the long run growth of the economy. The topics covered include: the Solow model of economic growth; growth accounting; factors contributing to total technological change and total factor productivity and the role and regulation of foreign direct investment.

Understanding data is at the heart of economics. Data on different processes or events is often noisy and impossible to predict with complete accuracy. However, most data variables have patterns, and econometrics is about understanding and helping to explain these patterns. Do last year’s sales figures help me predict what my sales figures will be this year? Do taller people live longer? Does lecture attendance cause students to achieve better grades? These are the kind of questions that econometrics can answer. First, we will look at data variables in isolation and see how univariate distributions can be used to make inferences. We will then look at how to model relationships between data variables and test for associations. Eventually, we will see how to model individual data variables as functions of several variables in the multivariate linear regression model.

Interpretation plays a huge role in econometric understanding. A large part of the module will focus on interpreting econometric results, and being able to identify potential flaws in econometric applications. The course is practical. Throughout the lectures we will see why econometrics helps us model data and also how this is performed in practice.

Managerial Economics is concerned with the application of economic principles and methodologies to the decision-making process inside corporations and other organisations operating under conditions of risk and uncertainty. Students acquire a solid foundation in key analytical tools: game theory, transaction costs, information asymmetries and the principal-agent problem. These tools are used to understand organisational architecture: the assignment of decision rights within organisations, the methods of incentivising individuals, and the structures and systems used to evaluate the performance of individuals and business units. This module draws on material from allied academic fields, including personnel economics, behavioural economics, financial economics and business history.

This second-year undergraduate course has three parts, the first providing the theoretical grounding for the other two, which are more policy-orientated. The first half of the syllabus provides the basic theoretical underpinning of modern industrial organisation, and tries to answer the positive question: what is competition? It compares and contrasts different paradigms on the relationship between market structure and firm conduct, as well as different theories of the firm. It introduces classic models of imperfect competition, shows how they have been revised in light of new economic thinking, and demonstrates how welfare analysis can be used to understand their social implications. Special attention is given to models of product differentiation. The second part of the syllabus looks at why and how public policy influences industrial organisation, and tries to answer the normative question: how do we achieve competition? Starting with a look at the historical origins of antitrust law, the module sets out how competition policy is used today by looking at real competition cases. The last topic covers three controversial areas of public policy as it relates to firms and industries: privatisation and natural monopoly, patents and innovation, and recent government bailouts of banks.

The module concentrates on public expenditure and taxation issues. Following a review of the welfare basis for government intervention, the expenditure section focuses on public goods, externalities, public choice, equity and efficiency aspects of health care and education provision, and fiscal federalism. The taxation section considers issues of tax incidence and the effects of taxation on savings and labour supply. The optimal (direct and indirect) tax literature is reviewed.

A brief overview of theories of industrial and economic organization, contemporary theories of the firm, agency costs, evolutionary economics, transaction cost economics, incentives, entrepreneurship, mergers, hybrids, corporate governance, strategic management, competitive advantage.

Topics will cover the role of socio-economic institutions and networks in our contemporary global economy, explaining the financial crisis of 2008 and its consequences from a network-institutional perspective, the theory of wealth generation and allocation through a social division of labour, and the functioning of network economies with an endogenous social division of labour.5

The field of environmental economics informs policymakers of the policy levers required to efficiently guide society towards sustainable patterns of consumption. This module will provide students with a solid grounding on the theory and practice of environmental economics, focussing on climate change and the sustainable transformation of the energy system. Students will understand the economic rationale for a variety of alternative environmental policies, such as Pigouvian taxes. This module will cover the difference between theory and practice, outlining the policy experience in the UK, Ireland and Europe, and the role political and social constraints have in enacting effective environmental policy. Decarbonisation of electricity forms a central element of tackling climate change. Students will gain an understanding of how the single electricity market on the island of Ireland operates and will critically evaluate various decarbonisation policies. This module will also touch on issues such as behavioural economics when dealing with energy efficiency and consumer behaviour. As many well-meaning environmental policies have had counter-intuitive negative consequences, this module will empower students to fully engage with the costs and benefits of climate change interventions.