Introduction to quantitative methods for Economists

Course Code:
153400120
Unit value:
1
Year of study:
Year 1
Taught in:
Full Year

This 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 twosubjects degree with Economics. It is a prerequisite for Quantitative Methods for
Economists.

Objectives and learning outcomes of the course

At 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

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 assessment
Assessment 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 Economists

Course Code:
153400121
Unit value:
1
Year of study:
Year 1 or Year 2
Taught in:
Full Year

This 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 tutors approval. It is a
pre-requisite for Econometrics.

Prerequisites
(153400120) Introduction to Quantitative Methods for Economists

Objectives and learning outcomes of the course

On 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 assessment
Assessment weighting: Exam 80%, weekly mini-tests 20%

Suggested reading
Background Reading
Mathematics

Abadir, K. M. and J. R. Magnus (2005) Matrix Algebra, Cambridge.

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 Finance

Course Code:
153400100
Unit value:
1
Year of study:
Year 2
Taught in:
Full Year

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.

Prerequisites
15 340 0003 - Introduction to Economic Analysis

Objectives and learning outcomes of the course

On successful completion of this course, you will understand the basic concepts used in
economics and some of the controversies surrounding them.

Method of assessment
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

Econometrics
Course Code:
153400103
Unit value:
1
Year of study:
Year 2
Taught in:
Full Year

This 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.

Prerequisites
15 340 0121 - Quantitative Methods for Economists

Objectives and learning outcomes of the course

On successful completion of this course, students will be able to:

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 assessment
Exam 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/SouthWestern, 2008

Banking and Finance

Course Code:
153400100
Unit value:
1
Year of study:

Year 2
Taught in:
Full Year

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.

Prerequisites
15 340 0003 - Introduction to Economic Analysis

Objectives and learning outcomes of the course

On successful completion of this course, you will understand the basic concepts used in
economics and some of the controversies surrounding them.

Method of assessment
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

Introduction to economic analysis

Course Code:
153400003

Unit value:
1
Year of study:
Year 1
Taught in:
Full Year

This 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 course

On 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 assessment
Assessement 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)