Please note that this degree is now closed for 2025 entry.
Course options
Key information
Duration: 4 years full time
UCAS code: L103
Institution code: R72
Campus: Egham
The course
Economics (MSci)
Studying Economics at Royal Holloway means that you will learn from internationally renowned experts at one of the UK’s top ten teaching and research departments. 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 four-year degree course offers a complete education in the theories and methods of economics, with a strong focus on analytical methods. You’ll cover the core material that a graduate Economist would be expected to know and you will develop your knowledge and skills to a more advanced level.
Your first year will see you learning all the basics of economics and mathematics whilst you will have a number of choices during your second year. During your third year you can specialise to suit your interests with a vast number of optional modules on offer whilst the fourth year is where you will bring all your knowledge together and hone your skills and knowledge during your time researching and writing your dissertation.
The knowledge and transferable skills gained will lead to excellent career prospects in public and private management, financial institutions and in government.
- Integrated Masters degree which provides you with an in depth understanding of economic theory and its applications
- Learn from internationally renowned experts at one of the UK’s top ten teaching and research departments
From time to time, we make changes to our courses to improve the student and learning experience. If we make a significant change to your chosen course, we’ll let you know as soon as possible.
Course structure
Core Modules
Year 1
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Principles of Economics is a first-year undergraduate module in how the economy works. The module is suitable for students with or without A-Level economics or equivalent. We will cover the basic theories of macroeconomics (that of the economy as a whole) and microeconomics (the behaviour of individuals, firms and governments and the interactions between them).
The module adopts the state-of-the-art CORE approach (Curriculum Open-access Resources in Economics) to teaching Principles of Economics. The approach has three pillars which we rely on throughout the module:
- Formulate a problem that our society is facing now or has faced in the past;
- Build a theory to explain and solve the problem;
- Evaluate the usefulness of the theory by using data observations and more novel theories.
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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.
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Data Skills for Economists is about understanding the data we encounter constantly in everyday life and the data that social science researchers create as they explore and analyse the world around us. We'll endeavour to understand such questions as:
- Where does data come from and how can we harvest it?
- What useful information does the data contain?
- How can we create new data to generate useful insights?
Computers equipped with statistical software are a big part of the answer to the third question (above) so, accordingly, you'll spend much of your time learning to analyse and display data using the R statistical software package (R is the industry standard).
We'll develop an ethos of clear communication of numerical information that will be supported by our growing understanding of statistical concepts and our growing proficiency with computers.
Simultaneously, we'll delve into the seamy underside of the tricksters who try to fool you with falsified data. Understanding their game can provide at least some degree of inoculation against their attacks.
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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.
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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
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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.
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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.
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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.
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In this module you will develop an understanding of the models of individual optimisation and their applications. You will look at the key determinants of an individual’s behaviour in a variety of circumstances and the behaviour of firms in different market environments, such as perfect competition, monopoly and oligopoly. You will consider how changing circumstances and new information influences the actions of the economic agents concerned, and examine the properties of competitive markets and the need for government intervention to correct market failures.
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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.
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The aim of this module is to provide you with a solid understanding of the essentials of empirical research techniques (i.e. econometrics) used by applied economists. The module will cover core econometric topics that are needed by all wishing to undertake econometric analysis, with a particular focus on topics in both time series and cross section econometrics that can be used by students of industrial, business and finance.
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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.
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The aim of this module is to extend your knowledge of the essentials of empirical research techniques (i.e. econometrics) used by applied economists. The module will build on the topics covered in Econometrics 1.
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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.
Year 3
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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.
Year 4
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You will attend a set of preparatory classes to equip you with the necessary skills required for research, including a hands-on approach to using statistical packages and reading peer-reviewed articles. You will be expected to use either econometric or statistical techniques, and apply your knowledge and skills from the other quantitative methods and theory modules taken during your studies, to produce your own piece of research around 10,000 words in length.
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This module will develop your understanding of the basics of modern microeconomic analysis. You will become familiar with the tools that economists use to analyse problems of resource allocation in market settings, beginning with a formal analysis of the optimising behaviour of consumers and producers. You will be introduced to markets and the notion of competitive equilibrium, in both partial and general equilibrium settings. You will then look at how individual market participants can affect prices, analysing the problem of a monopolist. Finally, you will consider static game theory to analyse markets where a small number of firms compete with each other (oligopolies).
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In this module you will develop an understanding of some of the key topics in macroeconomics, notably the roles of technological change, monetary policy, and fiscal policy in macroeconomic fluctuations. You will look at models of economic growth, resource allocation, and technological change, evaluating empirical evidence of these, and you become familiar with techniques such as dynamic optimisation, log-linearisation and difference equations for general economic analysis.
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This module will provide you with an introduction to modern intertemporal macroeconomics. You will learn about the tools used for dynamic economic analysis and apply them to topics such as economic fluctuations, unemployment, long-run growth, consumption decisions by households and investment decisions by firms. You will develop an understanding of dynamic macroeconomic models of economic behaviour, the main theories of economic fluctuations, the modern theory of unemployment, the principal determinants of consumption and investment decisions, and look at the process of economic growth.
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
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All modules are core
Year 2
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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.
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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.
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This module examines global policy issues from both a theoretical and empirical perspective. The module investigates a number of current international problems from an economist’s viewpoint and the policies implemented to deal with them. It combines economic theory with applied policy analysis and is supported with illustrative case studies. Topics include among other things, international trade, migration, foreign direct investment, poverty, inequality. The theoretical elements of the module are at a level suitable for students taking Intermediate Microeconomics and Intermediate Macroeconomics.
The module aims to develop your ability to evaluate international economic issues, and to develop skills in resolving these issues while improving written communication and presentation skills. Further, this module also exposes you to a wide range of relevant and interesting issues that will may help them in choosing a dissertation topic if they were to choose to write one.
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The module aims to deepen your understanding of the foundational methodology of economics. It provides you with the tools to critically reflect on the (often implicit) assumptions used in other economics modules. You will read articles and essays on the questions of economic methodology and discuss benefits and drawbacks of certain methods. After the standard foundations of economics have been established and analysed, we will look at extensions and variations of the standard methodology and critically examine their advantages and disadvantages. A recurring theme are the implications of our discussions for normative economics and policy. You should complete this module with a deeper appreciation of the complexity of real-life economic issues and a basic toolbox for tackling them.
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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
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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.
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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.
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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.
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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.
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This module covers family, household and demographic economics. You will think about real-world situations and develop your understanding of economic behaviour in your personal life, and how economics applies to an array of activities that most people don't think of as 'economic'. You will analyse methods of economic behaviour in a variety of contexts, and undertake a small original research project.
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In this module you will develop an understanding of the main effects of trade integration within Europe and, particularly, of the creation of the single market. You will look at the principal costs and benefits of monetary integration and the debate around the optimal currency area as it applies to the Eurozone. You will analyse the main aspects of the Eurozone crisis, consider the main policies and institutions of the EU, and examine the recent political implications of EU enlargement.
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This module is a one-term module in international trade suitable for students with basic knowledge in microeconomics. The module aims to further develop the student's analytical skills and to illustrate how these skills can be fruitfully applied to a variety of economic situations. The primary objective of the module is to teach the theory of comparative advantage and the factor proportions theory of international trade and to critically discuss these theories and their relevance in understanding real world issues.
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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.
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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.
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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.
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The module aims to introduce the student to what factors affect corporate financial decisions. Particular emphasis is given to the concepts of Net Present Value and Risk. The learning outcomes include: Understand what the goals of a firm are; Understand how investments are valued (Internal rate of returns) in order to help with good financial planning); Understand the concepts of risk, agency costs and how they feed into financial decision making; Understand the process of price formation in financial markets; Understand venture capital and different types of debt finance and debt valuation, including leverage.
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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.
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In this module you will develop an understanding of how economic methods can be applied to environmental issues facing society. You will consider the difficulties arising in using economic analysis in environmental policy design and learn how to solve and manipulate a variety of diagrammatic and algebraic models in environmental economics. You will evaluate a number of real-world environmental policy problems and see how economic analysis has been applied in their solution.
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In this module you will develop an understanding of the basics of coding and progranming with Python. You will look at some of the high-level data analysis packages within Python and learn how to plot multidimensional data in different ways including histograms and parametric plots. You will examine the use of arrays, matrices and basic control structures, such as IF, FOR, WHILE and RETURN. You will also consider how to evaluate simple and complex expressions and how to use Monte Carlo simulation to understand the impact of uncertainty.
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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.
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The module aims to introduce the student to what factors affect corporate financial decisions. Particular emphasis is given to the concepts of Net Present Value and Risk. The learning outcomes include: Understand what the goals of a firm are; Understand how investments are valued (Internal rate of returns) in order to help with good financial planning); Understand the concepts of risk, agency costs and how they feed into financial decision making; Understand the process of price formation in financial markets; Understand venture capital and different types of debt finance and debt valuation, including leverage.
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In this module you will develop an understanding of the wide range of fixed income securities and derivatives available to investors in the financial markets. You will look at the basic institutional features of derivatives markets, as well as the pricing of bonds and of derivative instruments and using them for hedging purposes. You will consider investment and trading strategies that use bonds and derivatives, and evaluate the use of bonds in immunising portfolios based on the bond's duration. You will also explore the features and uses of the most popular types of derivatives available today, including options, futures, forwards, and swaps.
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In this module you will develop an understanding of advanced topics in industrial organisation, with a special focus on the role that information plays in markets. You will explore topics such as collusion, mergers, product differentiation, and asymmetric information, and become familiar with a broad range of methods and models applied by economists in the analysis of firms and industries.
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In this module you will develop an understanding of the methods and models applied by economists in the analysis of firms and industries. You will learn how to manipulate these models and analytically solve problems relating to industrial economics. You will consider the applications of the models to important policy areas, exploring topics such as collusion, mergers, product differentiation and asymmetric information. You will also also examine the limitations of the theory.
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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.
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The module applies the methodology of economics to the analysis of political behaviour and institutions. Articles on social choice, constitutional theory, and public economics are studied alongside ones on voters, parties and pressure groups, macroeconomics and politics, capitalism and democracy. Emphasis is placed on the rise of populism in Western democracies, economic strategies to mitigate it, as well as on political decisions around lockdowns in pandemics. Students are exposed to advanced formal models of political behaviour and data techniques to explain recent political events.
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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.
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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.
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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.
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This module equips students with the fundamental theoretical tools for the analysis of the banking sector and will be useful for anyone considering further study or a career in this area. Topics covered include perfectly competitive and oligopolistic models of banking, moral hazard and adverse selection in the loan market, the macroeconomic implications of the credit market, the money multiplier, fractional reserve banking, bank runs, financial fragility and contagion. The module’s textbook will be Freixas and Rochet “Microeconomics of Banking”, but will also use "Understanding Financial Crises", Clarendon Lectures in Finance by Franklin Allen and Douglas Gale.
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The module presents the main facts about modern war and, to a lesser extent, terrorism. In parallel we will develop broadly applicable empirical tools to help us measure key phenomena and drive our analysis. Specific topics include the Israeli-Palestinian conflict, the Rwandan genocide, the economics of rebellion and the possible long-run decline of war. This module, together with Economics of Warfare 2, will prepare students of a lifetime of critical data consumption beyond the particular world of war and terrorism.
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Year 4
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In his module, you will develop an understanding of the methods used in the analysis of macro and financial time series data. You will analyse and critically evaluate empirical research in finance and macroeconomics, looking at linear and non-linear time series. You will consider the methodologies for large sample modelling of financial and economic data, and undertake a quantitative research project applying testing procedures on time-series data.
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This module will help you gain an advanced understanding of some key topics in macroeconomics. Notably the understanding of the roles of (1) technological change (2) monetary policy and (3) fiscal policy in macroeconomic fluctuations. The secondary aim is to learn and apply analytical tools such as dynamic optimization, log-linearization and difference equations, which are important not only for macro economic analysis but also for economic analysis in general.
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This module provides an overview of a very significant area of the contemporary financial world. The first part gives a coverage of the important elements of the default-free fixed income securities market, and the second part covers the derivatives market. The module focuses on the analytical tools used in portfolio management and risk management. For bond portfolios, these tools include yield curve construction, duration, convexity and formal term structure models. For derivatives, the emphasis will be on valuation, trading mechanisms and management of credit risk.
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In this module you will be introduced to the underlying theory and empirical evidence in portfolio management and its practice in the financial sector. Portfolio theory is blended with practical issues encountered in the investment process, and you will cover topics which include identifying investor objectives and constraints, recognizing risk and return characteristics of investment vehicles, developing strategic asset allocations among equity, managing portfolio risk, increasing portfolio return, and evaluating portfolio and manager performance relative to investment objectives and other appropriate benchmarks. You will develop an understanding of how funds are allocated in portfolio construction, and look at security analysis, optimal portfolio selection and delegated portfolio management.
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This module aims to analyse how corporate governance structures influence the behaviour of the relevant actors inside and outside of organisations. As both internal and external systems of corporate governance are explored, the module builds on the student's knowledge gained during their previous studies.
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The aim of this module is to give a more in-depth look at corporate finance issues related to company evaluation and with the main user of those evaluations e.g. private equity and Venture Capitalist (VC). It also aims at giving a practical approach to key aspects of corporate valuation, for example, leverage. Finally, this module will detail the dynamic and the valuation specificity for the different stages of the company from the start up, to the IPO to the mature company doing merger and acquisition.
Teaching & assessment
Teaching methods include lectures and seminars, supplemented by occasional practical computer labs in applied Econometrics courses. Lectures are an effective way of conveying information and explaining ideas. They also explore the relevant issues in greater depth to reflect and further the development of students’ knowledge and understanding.
Seminars are small-group sessions that are used for all taught modules. Students are pre-assigned a set of problems to complete before the class. During the class session the class tutor and students will go through the problems together.
In the Research Project module, students are supervised by a member of academic staff with expertise in the area it concerns. In preparing the project, students have the opportunity to meet with the supervisor to explore the issues it concerns, to receive guidance on your research and reading, and to receive feedback on the work as it progresses.
In addition, independent study forms an essential part in the development of knowledge and understanding. Finally, students are encouraged to attend consultation sessions with academic staff during office hours.
We provide a range of formative and summative assessment exercises which are designed to enable the student to demonstrate and apply their knowledge and understanding. Methods of assessment include:
- Written examinations
- Mid-term tests
- Essays
- Exercises and problem sets
- Team projects
- Final part interim report and project
- Library skills exercise such as plagiarism knowledge test.
Entry requirements
A Levels: ABB-BBB
Required subjects:
- GCSE Maths at grade A or 7.
- At least five GCSEs at grade A*-C or 9-4 including English and Mathematics.
Your future career
An Economics degree at Royal Holloway will equip you with an enviable range of practical skills and can lead into a variety of career paths.
We will help you to recognise your own strengths, skills and abilities so that you can make strong applications for your chosen job or further study. We also provide support through short dedicated careers modules, which include employability workshops, events and guest speakers.
- Get equipped with transferable skills such as numeracy problem-solving, computing and analytics
- Develop your professional network by attending workshops, events and guest speaker talks
- Dedicated short employability modules to help you in your career
Gain excellent career prospects in public and private management, financial institutions and government.
Our graduates are employed by companies such as Citigroup, Barclays, Bloomberg, Deloitte, KPMG and government departments such as the Ministry of Defence.
Fees, funding & scholarships
Home (UK) students tuition fee per year*: £9,250
EU and international students tuition fee per year**: £25,900
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 loans, scholarships 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. The fee for the academic year 2024/25 is £9,250 and is provided here as a guide. The fee for UK undergraduates starting in 2025/26 has not yet been set, but will be advertised here once confirmed.
**This figure is the fee for EU and international students starting a degree in the academic year 2025/26.
Royal Holloway reserves the right to increase tuition fees annually for overseas fee-paying students. The increase for continuing students who start their degree in 2025/26 will be 5%. For further information see fees and funding and the terms and conditions.
*** These estimated costs relate to studying this particular degree at Royal Holloway during the 2025/26 academic year and are included as a guide. Costs, such as accommodation, food, books and other learning materials and printing, have not been included.
