Designed for those who have already studied Economics and wish to deepen their subject knowledge, this degree opens up careers in a wide range of fields.
About The Course
The world needs people who can address global challenges by analysing problems and finding solutions. This intellectually demanding and stimulating Masters programme equips you with the tools to achieve this, and pursue an analytic career in Economics or rake the next step towards a PhD.
It is designed for those who have already studied Economics and wish to deepen their knowledge. You will join a select group of talented students, and our tailored learning experience allows you to tap into the wealth of expertise available in one of the UK’s largest faculties. This includes intensive support from a supervisor closely aligned to your dissertation’s subject matter.
We have an outstanding international research reputation in game theory, industrial organisation, econometrics, applied microeconomics, empirical macroeconomics, labour economics, and the economics of education. You will be invited to special guest lectures, research events, our weekly seminar series, and our annual workshops and conferences on subjects such as game theory and macroeconomics.
For a list of modules you will study, please take a look at our course content section.
12-month course, starts in October.
Designed for Economics graduates interested in a wide range of careers involving Economics.
The MSc Economics programme is made up of core and optional modules.
In your first term from October to December, you will take the following four core modules.
Building on your undergraduate microeconomics knowledge and providing a foundation for the more advanced and specialist material in elective modules, this module focuses on theoretical and analytical techniques in microeconomics and highlights policy applications of material. Topics covered include consumer theory, market structure (with particular attention given to game theory analyses of oligopoly), general equilibrium and welfare, incomplete information and incentives, and mechanism design.
The aim of this course is to provide students with an overview of the methods and models used in modern Macroeconomics. The course introduces students to intertemporal decisions and presents workhorse models in modern quantitative macroeconomics, including the overlapping-generations model, economic growth theory in closed and open economy, the Real-Business-Cycle approach, the Classical Monetary and New-Keynesian models. The course will put emphasis on the link between the theory and data, and how to solve the model analytically and/or numerically. By the end of this course, students should be able to choose the appropriate model and solve it to address a macroeconomic question.
This module introduces you to the main techniques that are used for empirical analysis in fields ranging from microeconomics to macroeconomics and finance. The main goal is to teach you how to become both a producer and a critical consumer of empirical research. This is achieved by focusing on the practical implementation of econometric techniques.
Research Skills for Economists
This module lays the foundations for preparing you for research in economics or for work as a professional economist, and covers different aspects of the research toolbox of modern economists. The module is organised in three sub-modules: Mathematical Methods for Economists, Academic Skills for Economists, and Empirical Skills for Economists. The aim of these sub-modules is to develop the tools you need in order to master the material presented in the taught part of the MSc in Economics and to progress towards independent research for the dissertation, and ultimately to work as a professional economist.
During your second term from January to March, you will choose four out of the below optional modules.
International Money and Banking
The first four sessions aim to establish an understanding of banks' behaviour and balance sheets, including capital structure, lending decisions and attitudes to risk. These sessions also study the banks’ role in transmitting the monetary policy decisions of the central bank, ie the choice of official interest rates and ‘quantitative easing’. This enables a discussion of the effects of monetary and fiscal policy on the main macroeconomic variables. Session four looks at the origins of the financial crisis and the policy responses.
Sessions five to seven cover developments in international banking regulation before and since the crisis. This includes the regulation of capital and liquidity under the Basel accords, the attempts to address the moral hazard and the ‘too-large-to fail’ problems, and the influence of regulation on the shadow banking industry.
The final three sessions study banking and monetary policy in the international context, with a particular focus on problems in the eurozone and the operation of the Eurosystem of central banks.
In this course, the treatment will generally be non-technical and will be based on developing an understanding of institutional practices and their implications.
This module looks at what can happen to the asset pricing in situations where market imperfections coincide with imperfections in investor rationality. It therefore explores the boundary between mispricing which can be exploited and that which cannot be exploited profitably.
The module lays foundations for arbitrage, investment and wealth management, investment banking, and corporate finance. The material covered is at the frontier of academic and industry research, forming a conceptually advanced body of knowledge (CFA level III) which is of relevance for theory, research and practice.
Topics covered include:
The efficient markets hypothesis and competing theories
Limits to arbitrage
Heuristics, biases and prospect theory: mental accounts and evidence in market prices
Myopic loss aversion, disposition effect and overtrading
Professional investors and analysts: over- and under-reaction
Bubbles: observational and experimental, rational and non-rational
Closed-end fund discounts, co-movement and sentiment
The equity premium puzzle and the volatility puzzle
Behavioural portfolio theory
Public Economics and Political Economy
This module gives an overview of public economics and political economy, providing you with research tools for theoretical and empirical work. It focuses on understanding the role of government in the economy through taxation, expenditure and institutional design, and the effect of political dynamics on governments’ decisions. Alongside classic topics such as public good provision and optimal taxation design, you will explore contemporary themes such as political economy, tax competition, endogenous institutions and the effects of political competition on public finance.
This course covers the advanced microeconomics of labour markets, covering contemporary theory and empirical evidence. In doing so, this course will provide an understanding of the role of labour markets and labour market policy in the economy. A range of standard topics in labour economics are covered including labour demand and supply, models of wage determination and wage inequality, discrimination, unions and unemployment.
Giving you a rigorous background in the theory of industrial organisation, this module covers theoretical work and supporting empirical papers on the structure, behaviour and performance of firms and markets. Topics include the organisation of the firm, monopoly, price discrimination, oligopoly, product differentiation, research and development, merger strategies, and auctions.
The credit crunch and subsequent events have challenged modern financial theory, emphasising the need to develop better pricing and hedging models for financial products. They have also sparked renewed interest in how financial markets and institutions function. Striking a balance between theory and practice, this module gives you a firm grounding in the economics of financial markets, and covers a variety of finance topics, focusing on the valuation of stocks, bonds, derivatives (futures and forwards, options, swaps), portfolio management and hedging strategies.
The aim of this module is to cover the advanced microeconomics of health and healthcare, covering theory and empirical evidence. The emphasis is on the interpretation of microeconomic models and the most current empirical evidence. The course provides a comprehensive set of economic tools to critically appraise fundamental issues in the economics of health while offering a broad overview of health care systems around the world. The course covers the economic issues facing the main actors and institutions in the healthcare markets: individuals, medical practitioners, hospitals, pharmaceutical companies, insurance companies, and governments. Practical aspects of cost benefit analysis in healthcare technology assessment are also covered.
From May to July you work solely on your Masters dissertation, with support from your dissertation supervisor. You will submit it at the start of September, at the end of your Masters programme.
The dissertation is a substantial piece of independent work where you can apply research techniques and relevant economic theory to a research topic. This can be an area which has attracted your attention in the course of your studies, or may be linked to an aspect of your professional working experience. You choose your topic during the second term, in consultation with the MSc Director. You are then assigned to an appropriate member of teaching staff who acts as a supervisor and gives you guidance on the structure and content of the research.
Current student Tiffany Head shares her experiences of studying MSc Economics in a recent blog. "The course has been both stimulating and intellectually demanding, and has provided me with the confidence and tools to excel in the next stage of my life. I valued the opportunity to massively expand my knowledge and extend my analytical and problem solving skills."Read Blog
Our programme-specific scholarships are aimed at high-achieving students with a strong academic or personal profile. We'll automatically consider you for these scholarships when you apply and if you are shortlisted we'll be in touch with the next steps, so it's best to apply as soon as possible. We also offer LUMS Alumni scholarships - visit our Scholarships and Funding page to find out more.Scholarships and Funding
Our Economics Masters courses will ensure you develop a comprehensive understanding of the discipline, including advanced methods to equip you with the skills required to succeed in this ever changing environment. In addition to specialised skills, you will also gain many transferable skills to prepare you for a successful career in a variety of sectors:
Analysis and Research – the ability to critically analyse data and conduct research
Communication – presenting complex information accurately
Problem Solving – developing solutions using available data and making recommendations
Time Management – the ability to produce high quality work within set deadlines
Computing – using a range of specialist and general software packages
Numeracy – Statistical and mathematical analysis
Find out more about our Careers support.