Economics BSc Hons - 2021 Entry

Course Structure

Lancaster University offers a range of programmes, some of which follow a structured study programme, and others which offer the chance for you to devise a more flexible programme to complement your main specialism. We divide academic study into two sections - Part 1 (Year 1) and Part 2 (Year 2, 3 and sometimes 4). For most programmes Part 1 requires you to study 120 credits spread over at least three modules which, depending upon your programme, will be drawn from one, two or three different academic subjects. A higher degree of specialisation then develops in subsequent years. For more information about our teaching methods at Lancaster please visit our Teaching and Learning section.

The following courses do not offer modules outside of the subject area due to the structured nature of the programmes: Architecture, Law, Physics, Engineering, Medicine, Sports and Exercise Science, Biochemistry, Biology, Biomedicine and Biomedical Science.

Information contained on the website with respect to modules is correct at the time of publication, and the University will make every reasonable effort to offer modules as advertised. In some cases changes may be necessary and may result in some combinations being unavailable, for example as a result of student feedback, timetabling, Professional Statutory and Regulatory Bodies' (PSRB) requirements, staff changes and new research.

Year 1

Core

• Career and Employability I

  Each year students receive specific training by the Management School Career Team, to prepare them for the graduate labour market. In the first year the focus is on growing the student’s awareness of labour market dynamics and his or her professional aspirations and inclinations. The second year focuses on goal setting, action planning, and the development of a personalised career plan. The third year focuses on one-to-one sessions with career advisors. The Career Team is based in the Management School, organises events with employers and alumni, and coaches students on how to best perform in the graduate job market through seminars, surgeries, mock interviews and one-to-one advice.

• Principles of Economics A

  Providing a thorough introduction to the discipline of Economics, this module is divided into two parts. The first part covers microeconomic analysis, including the theory of demand, costs and pricing under various forms of industrial organisation, and welfare economics. Many applications of theoretical models are examined. The second part focuses on macroeconomic analysis, including national income analysis, monetary theory, business cycles, inflation, unemployment, and the great macroeconomic debates.

• Quantitative Methods for Economics

  This module integrates elementary economic theory, mathematical and statistical methods and the interpretation of data in order to analyse economic issues of current policy importance. You will therefore be introduced to the basic tools of mathematics essential for a proper understanding of economics and business. Teaching on quantitative methods is combined with numerous practical applications to economics, enabling you to practise applying your analytical and quantitative skills to the topics developed and analysed in depth over the course of the module.

Year 2

Core

• Career and Employability II

  Each year students receive specific training by the Management School Career Team, to prepare them for the graduate labour market. In the first year the focus is on growing the student’s awareness of labour market dynamics and his or her professional aspirations and inclinations. The second year focuses on goal setting, action planning, and the development of a personalised career plan. The third year focuses on one-to-one sessions with career advisors. The Career Team is based in the Management School, organises events with employers and alumni, and coaches students on how to best perform in the graduate job market through seminars, surgeries, mock interviews and one-to-one advice.

• Intermediate Macroeconomics I

  This module is designed to extend the knowledge of macroeconomics principles you acquired in Year 1.

  Topics include:

  • classical and Keynesian views

  • the role of money

  • real balance and wealth effects

  • government budgetary constraints

  • monetary policy in the UK

  • models of exchange rate determination

  Although the main focus of the module is on macroeconomic theory, this is taught within the context of current events in the international macroeconomic environment. You are encouraged to use your knowledge of macroeconomic theory to gain a better understanding of current macroeconomic events and issues.

• Intermediate Macroeconomics II

  This module emphasises the application of macroeconomic theory to current policy issues.

  Considerable emphasis is placed on using analytical tools to gain a better understanding of the workings of the macroeconomy and the ways in which policy-makers respond to macroeconomic problems.

  Topics include:

  • unemployment and inflation

  • adaptive and rational expectations

  • policy effectiveness under rational expectations

  • the economics of independent central banks

  • growth theory

• Intermediate Microeconomics I

  This module explores the decision-making of economic agents (consumers and firms), and also examines how different market mechanisms operate to allocate resources. The topics it covers include utility maximisation, profit maximisation, cost minimisation, and introduction to market structures.

  The module requires algebra, elementary calculus, logical thinking and problem solving ability, and is normally taken in conjunction with Intermediate Microeconomics II (ECON221).

• Intermediate Microeconomics II

  This module builds on learning gained in Intermediate Microeconomics 1 (ECON220), developing on the theories and concepts covered as well as focusing on a range of new topics.

  Topics include:

  • analysis of monopoly behaviour and regulation

  • price and quantity setting in duopoly markets

  • introduction to game theory and strategic behaviour by firms

  • auctions (including a study of eBay)

  • general equilibrium and welfare economics

  The module is normally taken in conjunction with ECON220.

• Introduction to Econometrics

  This module provides an introduction to the theoretical concepts and applications of econometrics.

  Econometric techniques taught include bivariate regression, multiple regression and two stage least squares. The importance and relevance of statistical and diagnostic testing is emphasised in the context of econometrics applications. You will also learn how to use the statistical package SPSS, understanding of which is an integral part of the module.

• Mathematics for Economics

  This module brings together economic theory and mathematical methods as a basis for constructing and using mathematical models to analyse economic problems.

  The module covers matrix algebra, constrained optimisation, comparative statics and integral calculus. Knowledge of these methods will give you a broader understanding of intermediate and advanced microeconomics and macroeconomics.

Optional

• Applied Economics

  This module helps you to explore the connections between economic theory and econometric and statistical methods as applied to issues of global significance.

  The areas it covers include:

  • the economics of food security

  • the economics of crime, including cybercrime and the effects of deterrents and policing on crime

  • the transatlantic financial crisis: its causes, consequences and the future of macroeconomics poverty and inequality

• Economic Policy

  This module focuses on the role of governments within the economy, looking at the extent to which they can intervene in markets and in other areas such as climate change. It builds your skills in evaluating the effectiveness of economic policies, and provides insights into the difficulties of decision-making in collective-choice environments.

• Game Theory

  Over the course of this module, you will enhance your knowledge and understanding of how to specify economic problems in the confines of a game-theoretic model and to solve those problems using appropriate mathematical techniques. The module aims to build your capacity for logical and structured problem analysis.

Year 3

Core

• Career and Employability III

  Each year students receive specific training by the Management School Career Team, to prepare them for the graduate labour market. In the first year the focus is on growing the student’s awareness of labour market dynamics and his or her professional aspirations and inclinations. The second year focuses on goal setting, action planning, and the development of a personalised career plan. The third year focuses on one-to-one sessions with career advisors. The Career Team is based in the Management School, organises events with employers and alumni, and coaches students on how to best perform in the graduate job market through seminars, surgeries, mock interviews and one-to-one advice.

Optional

• Advanced Macroeconomics

  The course introduces state-of-the-art methods in macroeconomic analysis with a particular focus upon issues that matter for economic stabilization. Students will develop a broad and deep knowledge of modern macroeconomic models that require the use of advanced analytical methods. In particular, we will develop and understand the workings of the Neoclassical Growth model, the Real Business Cycle (RBC) model and the New Keynesian (NK) model. We will use these frameworks to examine the role of governments and central banks, as well as contemporary issues such as restrictions imposed by the zero lower bound, and the effectiveness of monetary and fiscal policies in a liquidity trap. In the context of the New Keynesian model, we will also investigate optimal stabilization policies along the business cycle, including the role of unconventional fiscal and monetary policies such as temporary tax measures, forward guidance and negative interest rates. The emphasis of the module is on the application of theory to these issues. At a more hands-on level, students will also be introduced to methods of computer programming that are used to solve macroeconomic models, giving them an additional skillset to apply their theoretical understanding. ECON 324 provides a solid foundation for a macroeconomics dissertation, a postgraduate degree in Economics, and advanced research projects in academia and central banks.

• Advanced Microeconomics

  This module develops advanced topics in the field of microeconomic analysis, with an emphasis on formal mastery as well as intuitive interpretation and understanding.

  Topics include:

  • duality and the envelope theorem
  • the Robinson Crusoe economy
  • prices and decentralisation
  • general equilibrium
  • the core decision-making under risk and uncertainty
  • game theory (correlated equilibrium)
  • information and mechanism design
  • the equilibrium price of time
• Applied Economics

  This module helps you to explore the connections between economic theory and econometric and statistical methods as applied to issues of global significance.

  The areas it covers include:

  • the economics of food security

  • the economics of crime, including cybercrime and the effects of deterrents and policing on crime

  • the transatlantic financial crisis: its causes, consequences and the future of macroeconomics poverty and inequality

• Behavioural and Experimental Economics

  This course aims to introduce students to the field of Behavioural and Experimental economics. The module provides the necessary skills to study how the standard rationality assumptions can be relaxed in order to take into account psychological and cognitive biases, as well as social preferences. In addition, it introduces students to the tool of experimentation in economics as a means of collecting data to test the various economic theories.

• Development Economics

  This module develops your understanding of advanced material in the field of economic growth as well as the problems of economic development. There is particular reference to the application of theoretical material to the development experience and policy-making in developing and emerging economies.

• Dissertation Module

  This module integrates intermediate economic theory, statistical methods and the interpretation of data to analyse applied economic issues of current business or policy importance.

  You will be prepared for your 5,000-word dissertation on an applied topic by attending workshops either individually or in groups. The workshops are supervised by a member of staff.

• Econometrics

  This module equips you with the tools needed to conduct applied econometrics. It emphasises an analytical and intuitive understanding of the classical linear regression model, and also covers newer topics such as:

  • specification tests

  • binary choice models

  • Tobit analysis

  • non-stationary time series

  • unit root tests and basic cointegration

  You will use the Eviews econometrics software.

• Game Theory

  Over the course of this module, you will enhance your knowledge and understanding of how to specify economic problems in the confines of a game-theoretic model and to solve those problems using appropriate mathematical techniques. The module aims to build your capacity for logical and structured problem analysis.

• Health Economics

  This applied module is designed as an introduction to the economics of health and health care, and helps to develop your awareness of the main policy issues in this field. It provides a comprehensive set of economic tools for critically appraising fundamental issues in the economics of health while offering a broad overview of the UK National Health Service and other health care systems around the world. The emphasis is on the use and interpretation of microeconomic models and the latest empirical evidence.

• Industrial Organisation

  This module focuses on firm behaviour and competition, using theoretical (especially game theoretic) and empirical models. It also explores the relationship between industry structure and firm conduct, together with aspects of firm behaviour such as advertising, R&D and mergers.

• International Trade

  This module develops your understanding of concepts and theories of international trade and factor flows, with particular reference to the way in which such material can inform policy-making.

  You will gain knowledge and understanding of international trade theory, and learn to apply this theory to the analysis of present-day policy issues in international economics.

• Labour Economics

  Focusing on the microeconomics of labour and personnel, this module covers topics such as the economics of migration, wage determination, job search and labour market discrimination.

  There is a particular emphasis on principal agent problems in human resources and the design of incentives within firms.

  Economics theory is used to analyse the operation of labour markers and assess the empirical evidence. Areas covered include:

  • the firm's demand for labour
  • labour supply at an individual and aggregate level
  • causes of wage rigidity
  • the economic impact of trade unions
  • inflation and unemployment
• Mathematical Economics

  This module trains ambitious economists to use formal mathematical methods used in economic modelling. These techniques are necessary for students interested in pursuing postgraduate studies in economics or working in analytically demanding jobs in the private sector. You will learn to use the Mathematica software package and how to address and solve economic problems by means of abstract models.

  The first part of the module is more micro-oriented and you will learn further methods of integration and what metric spaces and existence theorems are. You will also learn what quasi-concave and quasi-convex functions are and how to optimise with inequality constraints. The second part of the course is more macro-oriented and you will learn how to solve differential equations and perform dynamic optimisation.

• Monetary Macroeconomics

  This module examines the essential characteristics of a money economy, and the topics covered include:

  • Non-neutral money

  • Interest rate determination

  • Monetary and labour market disequilibria

  • The national debt and monetary disequilibrium (fiscal monetarism)

  • Monetary and international payments disequilibria

  • Rational expectations (RE) solutions and applications to stabilisation policy

  • Market efficiency and the application of RE to bubbles and to exchange rates

  • The central bank and inflation bias

• Public Economics

  This module is concerned with understanding the role of government in the economy. Among the topics covered are the characteristics of public goods, basic characteristics of a tax system under both classical and political economy approaches, and the effects of globalisation and its effects on modern tax systems. The module also explores how economic models can be used to understand current affairs.