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Economics and Econometrics

Economics and Econometrics

BSc (Econ)
  • UCAS code L140
  • Option 3 years full time
  • Year of entry 2021

The course

Studying Economics and Econometrics at Royal Holloway means that you will learn from internationally renowned experts at one of the UK’s top ten teaching and research centres.

Economics is one of the most influential and liveliest disciplines in today's world, affecting the lives and fortunes of everyone on the planet. This course offers rigorous training in theoretical and applied economics and will equip you with the mathematical skills needed to fully understand economics theoretical models.

You will also develop your econometrics skills so that you can analyse all type of data, equipping you for any career requiring strong data analysis skills.

Our balanced approach to research and teaching guarantees high-quality teaching from subject leaders, cutting-edge materials and intellectually challenging debates. Our courses follow a coherent and developmental structure which we combined with an effective and flexible approach to study.

Our flexible degree programmes enable you to apply to take a Placement Year, which can be spent studying abroad, working or carrying out voluntary work. You can even do all three if you want to (minimum of three months each)! To recognise the importance of this additional skills development and university experience, your Placement Year will be formally recognised on your degree certificate and will contribute to your overall result. Please note conditions may apply if your degree already includes an integrated year out, please contact the Careers & Employability Service for more information. Find out more

  • Study economic models and their mathematical foundations.
  • Cover in-depth econometrics methods.
  • Develop advanced data analytical skills and relate findings to economics models.
  • Opportunity to undertake a placement year in business.

Core Modules

Year 1
  • In this module you will develop an understanding of the theories of macroeconomics, that of the economy as a whole, and of microeconomics, the behaviour of individuals, firms and governments. You will look at how the goods and assets markets underpin growth, inflation and unemployment, and the role that fiscal and monetary policy play in macroeconomic management. You will examine the theoretical basis to supply and demand and the role of government intervention in individual markets. You will consider how to solve economic problems by manipulating a variety of simple diagrammatic and algebraic models in macro- and microeconomics, critically evaluating the models and their limitations.

  • Data Skills for Economists
  • In this module you will develop an understanding of information surrounding economic institutions, economic history, applied economics and policy & experimental & behavioural economics. In the seminars, you will discuss each topic and learn among other things how to write an essay, how to present, how to collect economic data, how to find relevant economic research, and how to think like an economist.

     

  • The aims of the module are to cover the basic mathematical and quantitative tools used by economists every day. The module gives an emphasis to the mathematical tools, which are applicable to solving a wide range of economic problems. The first half of the module is devoted to linear algebra, specific functions of one and more variables used in economics, manipulating those functions and finding their minima and maxima. In addition, the first half of this module delivers the rules of integration and differentiation, which prepares the you to apply constrained and unconstrained optimisation techniques in their subsequent 2nd and 3rd year of studies. Constrained and unconstrained optimisation techniques are also discussed. The second half of the module is devoted to optimisation theory which in turn will use the concepts of vectors and matrices, drawn from linear algebra, and require the study of concave functions. The knowledge of matrices will help you solve systems of linear equations, which are used in both microeconomic and macroeconomic planning and forecasting.

  • This module will be composed of an introduction to Employability, library resources, team building, and CV making. Career services will provide a session on self-awareness and decision making and library services will present their relevant resources. Finally, the Economics department will organise some team building exercises.

Year 2
  • In this module you will develop an understanding of macroeconomics and macroeconomic policy-making. You will look at a variety of contemporary and historical macroeconomic events, and the differences between the short, medium and long run. You will consider why some countries are rich and some are poor, why different economies grow at different rates, and what determines economic growth and prosperity. You will examine the role of monetary and fiscal policy, its impact on the economy and its limitations. You will also analyse how taxation, budget deficits, and public debt affect the economy.

  • In this module you will develop an understanding of the mathematical models used to study and analyse strategic interactions between agents. You will look at the fundamental concepts in game theory as applied to economics in general and microeconomics in particular. You will become familiar with basic equilibrium concepts such as Nash equilibrium and subgame perfect equilibrium, and be able to find equilibrium outcomes of simple games including the use of backward induction.

  • In this module you will develop an understanding of the behaviour of individuals and firms in the economy. You will look at models of individual optimisation and their applications, considering the key determinants of an individual’s behaviour in a variety of circumstances. You will examine the behaviour of firms in different market environments such as perfect competition, monopoly and oligopoly, and the factors which are important in shaping the decisions that firms make in each market environment. You will learn to manipulate and solve diagrammatic and algebraic models of microeconomics, analysing the properties of competitive markets and assessing the role of government intervention in correcting market failures.

  • The aim of this module is to offer students a more advanced, deeper understanding of the essentials of the theory and practice of econometrics. The module will address many of the topics covered in Econometrics 1 but using more mathematical and statistical rigour, including an introduction to econometric computer coding, with an aim to increase understanding of the concepts, theories and techniques that underlie applied econometric research.

  • The aim of this module is to extend and deepen your knowledge of the essentials of econometric theory and practice. This module will build on the topics and techniques covered in Econometrics A looking at extensions of techniques and estimation methods to address more complex problems.

  • Career services will provide a session on how to be ready to apply for an internship at the end of the second year. Students will prepare for a psychometric test and will undertake a series of a mock interviews in order to improve their interview technique. Finally, students will attend at least one Econ@Work talk to be aware of professional life and challenges.

Year 3
  • In this module you will develop an understanding of the theoretical properties of different econometric estimation and testing procedures under various modelling assumptions. You will learn to formulate, estimate, test and interpret suitable models for the empirical study of economic phenomena. You will consider how to apply regression techniques and evaluate the appropriateness of each econometric estimation method under different data limitations.

  • This third-year course will deepen the elements covered previously in Employability 1 and 2. Career services will provide a session on how to be ready for employment at the end of the year. Students will prepare for a psychometric test and undertake a series of mock interviews in order to improve their interview technique. Finally, students will attend at least one Econ@Work talk to be aware of professional life and challenges.

  • The Dissertation provides you with the opportunity to undertake an extended piece of individual research work. You will use the econometric and statistical techniques you have learned about in the quantitative method modules taken earlier in the course.

You will also take one of the following:

  • In this module you will develop an understanding of the theoretical properties of different econometric estimation and testing procedures under various modelling assumptions. You will look at regression techniquies and learn how to apply relevant econometric and statistical methods to your own research. You will also evaluate the appropriateness of each of the economic estimation methods and the impact of consider data limirations.

  • In this module you will develop an understanding of the principal techniques used in financial econometrics. You will look at why deviations from standard models are required to handle the peculiarities of financial data and consider how to interpret the theoretical techniques used in finance. You will also learn how to apply the techniques using standard econometric software packages such as STATA.

Optional Modules

There are a number of optional course modules available during your degree studies. The following is a selection of optional course modules that are likely to be available. Please note that although the College will keep changes to a minimum, new modules may be offered or existing modules may be withdrawn, for example, in response to a change in staff. Applicants will be informed if any significant changes need to be made.

Year 1
  • All modules are core
Year 2
  • In this module you will develop an understanding of the economic principles underlying the working of national and international financial institutions. You will look at what a financial system is and does, and the distinct functions of each component. You will consider the key financial instruments and the relationship between assets, agents, and institutions, and learn to solve simple problems using quantitative and graphical tools. You will critically evaluate country differences and analyse the interdependencies and rapid change of the modern financial world.

  • In this module you will develop an understanding of the principal-agent problem, the Coase theorem, theories of the firm, the role of transaction costs, moral hazard, adverse selection, and issues surrounding organisation, investment, governance and expansion of corporations. You will look the role of incentivisation and how conflicts of interests shape economic interactions. You will consider the role of transaction costs in determining the existence, scale and scope of firms, and examine why government regulation may be inferior to market solutions when dealing with externalities. You will also analyse the developments of Anglo-American industrial and Japanese capitalism.

  • In this module you will develop an understanding of the process of economic growth at the world level, and the sources of income and growth differences across countries. You will look at Piketty's work on income distribution and economic growth, Malthus' work on population and economic growth, and Solow's standard economic growth model. You will examine why some countries are rich and some are poor, and consider the differences between countries that explain economic success and failures.

Year 3
  • In this module you will develop an understanding of the use of experiments to test economic theories. You will look at how individuals make decisions in markets, how individuals decide to spend money today or save it for future spending, the assumption of self-regarding preferences commonly made in standard economic models, and the ability to act rationally in a strategic environment. You will consider the issues raised by experimental design and critically evaluate the advantages and disadvantages of experimental methods.

  • In this module you will develop an understanding of the role of money in the economy. You will look at models where inflation shows persistence, the theory of monetary policy, monetary policy operating procedures and the central banking mechanisms. You will consider why inflation is persistent in the data and how the political forces affecting monetary policy-making may affect inflation.

  • In this module you will develop an understanding of the mathematics of optimisation and of equilibrium models. You will look at the linkage between markets and Pareto optimality and consider the social outcomes that can be implemented in game-theoretic equilibrium. You will also examine the basic types of auctions and when and why they implement identical outcomes.

     

  • In this module you will develop an understanding of economic inequality. You will look at the factors that determine wage differentials among workers from a theoretical and empirical point of view. You will consider why similar workers are paid differently and examine how labour mobility can improve the allocation of workers to firms, enhance aggregate productivity, and reduce inequality.

  • In this module you will develop your understanding of the main theoretical and empirical issues in modern labour economics. You will look at theory, evidence and policy, covering labour demand, labour supply and time allocation decisions, schooling and job training, human capital investment, wage determination, unemployment, minimum wage, returns to schooling, discrimination, and immigration. You will critically analyse important labour market phenomena, as well as various public policy issues, such as government training programs, minimum wage policies, unemployment insurance and welfare benefits.

  • In this module you will develop an understanding of the different approaches to national economic policy. You will consider the economic advantages and disadvantages of globalisation and look at the effects of tax-cutting, deregulation, privatisation, mixed economy, efficiency and income distribution.

  • In this module you will develop your understanding of important topics from economic history, covering periods of economic growth and wellbeing, agricultural and urban development, globalisation and migration, banking and monetary systems, and the Great Depression and recovery.

  • In this module you will develop an understanding of both theoretical and empirical issues in Development Economics, such as the behaviour of credit and insurance markets in developing economies, the existence of poverty traps and the role of income, ethnicity, gender and caste in the development process.

  • In this module you will develop an understanding of the factors that affect corporate financial decisions. You will look at what the goals of a firm are and how investments are valued in order to help with financial planning. You will consider the concepts of risk, agency costs and how they feed into financial decision making, and the process of price formation in financial markets. You will also examine venture capital and different types of debt finance and debt valuation, including leverage.

  • In this module you develop an understanding of the effects of government policy upon the economy and the design of policy. You will look at empirical methods for policy evaluation and discuss research carried out in public economics, on topics such as income taxation, welfare support, behavioural responses, and social security.

  • In this module you will develop an understanding of the mathematical models used to study and analyse strategic interactions between agents. You will look at the fundamental concepts in game theory as applied to economics in general and microeconomics in particular. You will become familiar with basic equilibrium concepts such as Nash equilibrium and subgame perfect equilibrium, and be able to find equilibrium outcomes of simple games including the use of backward induction.
  • Topics in Finance

Teaching is mostly by means of lectures and seminars, the latter providing a forum for students to work through problem sets and applications in a smaller and more interactive setting. Outside of scheduled teaching sessions, students work independently, or collaboratively, researching, reading and preparing for seminars. 

Assessment is usually carried out by end of year examinations as well as class tests and assignments. Final year students can choose to complete an extended essay, which offers students the chance to conduct an original piece of research.

A Levels: AAB-ABB

Required subjects:

  • A-level Mathematics
  • At least five GCSEs at grade A*-C or 9-4 including English and Mathematics.

Where an applicant is taking the EPQ alongside A - levels, the EPQ will be taken into consideration and result in lower A-level grades being required. Socio - economic factors which may have impacted an applicant's education will be taken into consideration and alternative offers may be made to these applicants.

English language requirements

All teaching at Royal Holloway (apart from some language courses) is in English. You will therefore need to have good enough written and spoken English to cope with your studies right from the start.

The scores we require
  • IELTS: 6.5 overall. Reading and writing 6.0.  No other subscore lower than 5.5.
  • Pearson Test of English: 61 overall. Reading and writing 54. No subscore lower than 51.
  • Trinity College London Integrated Skills in English (ISE): ISE III.
  • Cambridge English: Advanced (CAE) grade C.

Country-specific requirements

For more information about country-specific entry requirements for your country please visit here.

For international students who do not meet the direct entry requirements, we offer an International Foundation Year, run by Study Group at the Royal Holloway International Study Centre. Upon successful completion, you may progress on to selected undergraduate degree programmes at Royal Holloway, University of London.

This course has a strong emphasis on analytical skills and data analysis, opening the door to a variety of careers in industry, government, or further research.

We will help you to recognise and articulate your strengths, skills and abilities so that you can make strong applications for your chosen career or further study.

We also provide support through a dedicated careers course, which includes employability workshops, events and guest speakers.

Home (UK) students tuition fee per year*: £9,250

EU and International students tuition fee per year**: £18,800

Other essential costs***: There are no single associated costs greater than £50 per item on this course.

How do I pay for it? Find out more about funding options, including loansscholarships and bursaries. UK students who have already taken out a tuition fee loan for undergraduate study should check their eligibility for additional funding directly with the relevant awards body.

*The tuition fee for UK undergraduates is controlled by Government regulations. For students starting a degree in the academic year 2020/21, the fee will be £9,250 for that year. The fee for UK undergraduates starting in 2021/22 has not yet been confirmed.

**The Government has confirmed that EU nationals starting a degree in 2020/21 will pay the same fee as UK students for the duration of their course. For EU nationals starting a degree in 2021/22, the UK Government has recently confirmed that you will not be eligible to pay the same fees as UK students, nor be eligible for funding from the Student Loans Company. This means you will be classified as an international student. At Royal Holloway, we wish to support those students affected by this change in status through this transition. For eligible EU students starting their course with us in September 2021, we will award an automatic fee reduction which brings your fee into line with the fee paid by UK students. This will apply for the duration of your course.

Fees for international students may increase year-on-year in line with the rate of inflation. The policy at Royal Holloway is that any increases in fees will not exceed 5% for continuing students. For further information see fees and funding and our terms and conditions. Fees shown above are for 2020/21 and are displayed for indicative purposes only.

***These estimated costs relate to studying this particular degree programme at Royal Holloway. Costs, such as accommodation, food, books and other learning materials and printing etc., have not been included.

Accreditation

Chartered Institute of Management Accountants

Accredited by CIMA (Chartered Institute of Management Accountants). On completing this course you'll be able to apply for 4 exemptions.

Top 10 UK Economics department

Source: THE, REF institutions ranked by subject, 2014

93% of our Economics graduates are employed or go on to further study within six months of graduating

Source: DLHE, 2018

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