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Course modules

Modules are taught in a two-hour block format. The first two hours deliver the core theoretical and technical concepts; these are then applied in the remaining hour which is spent in a classroom.

If you have a Queen Mary login, you can view more detailed information about these courses on QMplus.

ECOM001 Macroeconomics A

This module deals with the long-run growth of GDP and its short-run fluctuations. We start by analysing the traditional models of economic growth theory, ie the Solow-Swan model and the Ramsey-Cass-Koopmans model. Within the framework of these models we study the central questions of growth theory as well as the effects of government expenditure on macroeconomic variables. Then we discuss the most important ideas of endogenous growth theory, including research and development, human capital formation, and knowledge creation. The second part of the module deals with two classes of theories of aggregate fluctuations, ie real-business-cycle theories and Keynesian theories. Whereas real-business-cycle theories assume flexible prices and market clearing, Keynesian theories proceed from the assumption of nominal stickiness and market failure. We discuss possible reasons why prices and wages are sticky and analyse the implications of this fact.
Prerequisites: None

ECOM002 Microeconomics A

Microeconomic Theory provides the basic conceptual tools of economic analysis. In Micro A, we will cover the standard economic models of individual decision-making, models of consumer behaviour and producer behaviour under perfect competition, the Arrow-Debreu general equilibrium model and the two fundamental welfare theorems. At the end of the course students should be able: to analyze decision-making with and without uncertainty, derive individual and market demand curves and explain the concept of market equilibrium and its welfare properties.

ECOM003 Econometrics A

The purpose of this module is to provide students with the necessary tools for formalising a hypothesis of interest and testing it, writing a simple econometric model, estimating it and conducting inference. The module starts with a review of the classical linear model. We then analyse finite sample and asymptotic properties of ordinary least squares, instrumental variables and feasible generalised least squares, under general conditions. Classical tests, as well as general Hausman tests, and moment

ECOM009 Macroeconomics B

The module covers a number of standard topics in macroeconomics. The module introduces the main theoretical contributions within each set of topics and critically assesses their strength and limitations in the light of the empirical evidence. The first part of the module deals with individual and aggregate consumption and saving behaviour as the outcome of optimal intertemporal choice. It uses the framework to study a number of policy issues including the effect, and optimal mix, of tax versus debt financing of government expenditure. The second part of module presents theories of firms' investment in physical capital and their implications for aggregate investment. The last part introduces two ways of looking at unemployment as an equilibrium outcome. The first view highlights the role of search frictions. The second one focuses on real wage inflexibility.
Prerequisites: ECOM001 Macroeconomics A

ECOM010 Microeconomics B

This course aims to help students to develop advanced analytical and theoretical skills. The course will attempt to develop students' capacity for strategic reasoning via the analysis of game theoretic tools and mechanism design. Topics to be covered in the second term include: games in strategic and extensive form; Nash equilibrium and its refinements; games with incomplete information; repeated games; adverse selection, signaling, and screening; the principal-agent problem; incentive theory and mechanism design.
Prerequisites: None

ECOM014 Time Series Analysis

The module aims to provide a foundation in time series analysis in general and in the econometric analysis of economic time series in particular, offering theory and methods at a level consonant with an advanced training for a career economist.

Topics include:-

An Introduction to Time Series Analysis for Econometrics and Finance;
Linear Time Series Models; Seasonal Time Models;
Estimation and Forecasting;
Unit Roots and Co-integration;
ARCH and GARCH Time Series models.

Prerequisites: None

ECOM015 Corporate Finance

This module aims to develop an understanding of how firms raise external finance and design their capital structure. In the first three lectures we assume that the firm

ECOM024 Dissertation Module

ECOM025 Financial Econometrics

This module discusses econometric methodology for dealing with problems in the area of financial economics and provides students with the econometric tools applied in the area. Applications are considered in the stock, bond and exchange rate markets. The module covers the following issues: asset returns distributions, predictability of asset returns, econometric tests of capital markets efficiency and asset pricing models, intertemporal models of time-varying risk premium, and nonlinearities in financial data, value at risk, pricing derivatives with stochastic volatility (or GARCH) models, modelling nonsynchronous trading, and numerical methods in finance.
Prerequisites: None

ECOM026 Financial Derivatives

The purpose of this module is to provide students with the theory and practice of pricing and hedging derivative securities. These include forward and futures contracts, swaps, and many different types of options. This module covers diverse areas of derivatives, such as equity and index derivatives, foreign currency derivatives and commodity derivatives, as well as interest rate derivatives. This module also addresses the issue of how to incorporate credit risk into the pricing and risk management of derivatives. All the relevant concepts are discussed based on the discrete time binomial model and the continuous time Black-Scholes model. The extensions of the Black-Scholes model are also discussed.
Prerequisites: None

ECOM027 Labour Economics

The aim of this module is to enable students to gain an understanding of some relevant issues in contemporary labour economics with an emphasis on the empirical side of the discipline. The material is a mix of theoretical economics, data analysis and micro-econometric techniques. This module illustrates how economists uncover the effect of policy reforms and changes in opportunities and constraints on individual outcomes and behaviours using microdata. The approach used in this course is one that is becoming increasingly popular among applied economists in a number of sub-fields, including development economics, public finance, economics of education and public policy. Because of this, the module is addressed both to prospective researchers and to those wishing to pursue a variety of careers in government, international institutions and consulting. Topics covered include: Wage differentials, Wage Inequality, Discrimination, School vouchers, Early education, Neighbourhood effects, Minimum wages, Early birth outcomes, Immigration, Returns to education, Productivity spillovers, Labour supply, Fertility, Intergenerational transmission of human capital, Training, Welfare. Most of the readings for the course are journal articles.

ECOM032 Econometrics B

(Macroeconometrics) This module is designed to provide you with a general knowledge and the basic methods used in the current practice of macroeconometrics. The module covers the following lecture topics: A brief history of macroeconometrics and current methodological issues in macroeconometrics; the main characteristics of macroeconometrics and fundamental tools. It examines two important aspects: dynamics and interdependence; and interpretation of econometric results: expectation and exogeneity. It then goes through basic models with cointegrated time series and discusses how to link macroeconometric models to macroeconomic theory. Prerequisites: ECOM 003 Econometrics A

ECOM035 International Finance

Foreign exchange is not only the most heavily traded of all financial assets, it has the clearest interface between macroeconomics and finance. In this module you’ll get an introduction to the main theoretical models used to understand FX markets as well as in-depth analysis of how they work in practice. Topics include: Understanding global imbalances, models of exchange rate determination, the structure of the FX market and how trades are priced, FX derivatives markets, foreign exchange intervention and reserves, and currency regimes and crises. Each week the key lessons of the lecture are illustrated through an analysis of current economic events such as the problems in the Euro-area, China's Foreign Exchange Rate Policy and the role of the Dollar as a global reserve currency. We also price and monitor foreign exchange trades suggested by course participants to see how good you are at FX trading!

ECOM036 Mathematics for Economists

The purpose of this module is to equip students with the mathematical tools needed to study economics and related fields at the postgraduate level and to work in these areas as a researcher or practitioner. The emphasis is on both (1) mastering specific techniques that are widely used in economic theory and finance, and (2) developing a language, a conceptual framework, and a standard of argument appropriate for analyzing economic questions mathematically. The course complements the department’s postgraduate micro and macro theory sequences, and together with these modules will enable the successful student to read research papers in theoretical and applied economics. As time permits, some or all of the following topics will be covered: logic, sets and orderings, the real number system, Euclidean space, sequences and limits, topology and convexity, functions and correspondences, continuity, differentiability, the inverse and implicit function theorems, fixed point theorems, optimization, comparative statics, dynamic programming, and optimal control.

ECOM037 Quantitative Techniques

This module aims to provide you with the necessary tools for writing and estimating simple econometric models in the context of financial quantitative analysis. Basic statistical tools needed for understanding and using financial models are introduced and explained. We will assume you have a minimal knowledge of econometrics and statistics.
Prerequisites: None

ECOM038 Behavioural Finance

The course will emphasize four main issues. First, we will focus on the explicit and implicit assumptions of the mainstream approach to modelling decision making. Second, we will cover important phenomena that constitute violations/puzzles from the point of view of the mainstream approach. A large emphasis will be placed on puzzles related to important financial decisions by individuals (such as how much to save for retirement) and to the functioning of financial markets. Third, we will discuss various theories from Behavioural Economics that aim to explain the violations/puzzles. We will emphasize how exactly the behavioural theories deviate from the mainstream assumptions. Fourth, where applicable, we will discuss the following question: If decision makers are less than perfectly “rational,” can we design policies that help individuals make better decisions, especially better financial decisions.

ECOM042 Empirical Finance

This course aims to bridge the gap between theoretical financial models and the real world by taking us through the major accomplishments (and failures) of empirical finance during the last quarter of a century. In particular this module will revisit the Efficient Market Hypothesis in finance and its relationship to the random walk model. It will then discuss statistical tests for the random walk hypothesis and their applications to weekly returns on common stocks. It will then go deeper into the empirical analysis of asset returns data so as to uncover the main stylised facts in finance using simple descriptive statistics. To explain the stylised facts in the data, the lectures will then apply asset pricing models from the two main strands of modern finance: market microstructure theory and behavioural finance.

Prerequisites: ECOM050 Investment Management

ECOM043 Quantitative Asset Pricing

This module introduces students to the area of finance. It covers the following topics: present value, valuation of common stocks, market making, trading systems, term structure of interest rates, bond valuation and duration, bond convexity and immunization, hedging and butterfly trades in the treasury bond market, measures of risk, portfolio analysis and two fund separation theorem, capital asset pricing models, and arbitrage pricing theory models.
Prerequisites: None

ECOM044 Advanced Asset Pricing and Modelling

The aim of this module is to provide students with the analytical tools of advanced finance theory. The module will give an introduction to stochastic calculus, optimal control and martingale methods, and will cover dynamic asset pricing models, optimal consumption and portfolio theory, equilibrium models of the term structure of interest rates, option pricing of interest rates and stocks based on arbitrage and general equilibrium models, incomplete markets and portfolio optimisation in incomplete markets.
Prerequisites: ECOM043 Quantitative Asset Pricing

ECOM049 Commercial and Investment Banking

In this module you will study the role of money in the macroeconomy, the behaviour of interest rates, banks and other intermediaries, the regulation of both money markets and the banking system and the operations of central banks. The focus is on the practical aspects of money and banking as experienced by practitioners in financial institutions.
Prerequisites: None

ECOM050 Investment Management

This offers a high level introduction to concepts related to investment analysis. Topics treated include valuation of real and financial securities; the principles of investment; valuation of risky securities; portfolio analysis and bond portfolio management; financial market equilibrium; the CAPM and APT models; capital budgeting and risk; market efficiency.
Prerequisites: None

ECOM051 Business Finance

This module aims to develop an understanding of how firms raise external finance and design their capital structure. We also look at how real investments are valued and how corporations interact with financial markets. In particular, we will be looking into how firms make financial decisions. We will examine the assumption that a firm

ECOM052 Financial Statements

This module provides you with the necessary skills to interpret and analyse accounting reports when making business decisions. Topics include valuation of equity of debt instruments, ratio analysis, fundamental analysis, earning management.
Prerequisites: None

ECOM053 Quantitative Methods in Finance

This module provides an introduction to applied econometrics to financial problems. The material is presented through detailed examples with associated data and software and hence should prove useful and interesting to students whether or not they have some prior exposure to econometrics. Basic statistical tools needed for understanding and using financial models are introduced and explained.
Prerequisites: None

ECOM055 Risk Management for Banking

The module is designed to give a good insight into the risk management process and how capital is allocated. We identify the main sources of risk experienced by Financial Institutions such as credit, market, liquidity, and operational risks. Methods for quantifying and managing risk are explored in detail with an emphasis on understanding factors affecting Value at Risk (VAR) calculations. Finally, we see how reporting standards, regulation and innovation have transformed the way Financial Institutions operate and what can we learn from recent risk management failures.
Prerequisites: ECOM053 Quantitative Methods in Finance

ECOM056 Empirical Macro Economics

This module studies modern econometric methods to estimate, evaluate and forecast with structural macroeconomic models. It covers methods that are popular in Central Banks and in policy institutions. The methods covered allow us to extract cyclical information, solve and estimate structural models, evaluate the effect of monetary policy, and forecast variables such as inflation and output growth using econometric software.
Prerequisites: Econometrics A and Macroeconomics A (or equivalent; contact the lecturer before registering if you have only Econometrics A)

ECOM057 Asset Management

The purpose of this module is to provide students with practical application of modern portfolio theory and asset pricing, including active portfolio management, portfolio performance evaluation, portfolio insurance, and international portfolio diversification. On the successful completion of the module students will know how to practically implement modern portfolio management strategies and will be familiar with the practical aspects of asset valuation.
Prerequisites: ECOM050 or ECOM043

ECOM058 (MSc Law and Finance students only) Principles of Accounting

This module aims to introduce students to the fundamentals of accounting and financial reporting. The module will commence with a session on double-entry bookkeeping and its application for the preparation of basic financial statements.

ECOM059 Applied Risk Management for Banking

The module is aimed at MSc Banking and Finance and MSc Investment and Finance programmes as an optional module, and fills the gap in the school

ECOM061 (MSc Law and Finance Students Only) Financial Economics

The aim of this course is to define and provide rigorous training in Finance, the value of the Financial System, its primary institutions and participants. More specifically, its purpose is to show how firms or individuals allocate scarce resources over time under conditions of uncertainty. Finance theory is presented under a three pillars framework: optimization over time, asset valuation, and risk management (including portfolio theory).
Prerequisites: None

ECOM062 (MSc Law and Finance Students Only) Financial Management

The aim of this module is to examine some of the main principles of governance, regulation, and strategy for companies and firms in the financial services industry. The economic theory of the principal-agent model will be used as a basis to understand the theory behind financial management and related financial and regulatory risks. We will also study how principles of corporate governance apply to banks and financial institutions. We also will examine the structure of the global financial system to understand more fully the risks that bank management face. The theory of financial management will be analysed from an interdisciplinary perspective based on economic and legal theories. We will apply these theories to contemporary issues of financial management in modern global financial markets.

ECOM069 Banking Regulations

National, regional and global banks are at the epicentre of economic, political and social developments. They are shaped by their own intrinsic dynamics but they are also at the receiving end of potent external forces, including monetary developments, state regulation and governmental policies. This course examines the regulation of the banking sector in the context of the multifaceted dynamics which operate in international financial markets. Primarily the course aims to contribute to a critical understanding of the subject matter through the combined study of theories of regulation in general and banking regulation in particular. Subsequently, it also aims at analysing the financial markets in which banks play a pivotal role, e.g. primary and secondary capital markets in which banks are very active in different roles.

ECOM070 Cases in Business Finance

This module aims to develop an understanding of how firms raise external finance and design their capital structure, how real investments are valued and how corporations interact with financial markets. The course will use the case study approach to the practical aspects of important topics in corporate finance.

We will apply those concepts and techniques that were studied during the first semester to actual situations. The structure of the module will reflect the structure of the Business Finance course. In addition to analysing specific financing problems, we will also consider issues related to the strategic objectives of the firm. We will use case studies to analyse the complexities of, and apply theory to real-life corporate finance problems.

Prerequisites: ECOM051 Business Finance

ECOM072 Econometrics for Finance

The module will cover fundamental methods for the empirical analysis of financial data. Some prior knowledge of general econometrics will be assumed, and the focus will be on building an understanding of the ideas behind, and the application of, those methods that are most heavily relied upon in the empirical analysis of financial data. A majority of the topics treated will be related to empirical asset pricing and portfolio choice, although other areas of finance will also be covered.

ECOM073 Topics in Financial Econometrics

This module aims to provide a deeper foundation in mathematics and statistics, creating a good basis for students to draw on in their professional careers. Module content also encompasses new and specialised techniques, which may not have been studied previously.

ECOM074 Bond Market Strategies

Bond markets and the term structure of interest rates have always been two cornerstones of financial theory. Moreover, in the last decades, bond markets have become highly sophisticated in their offering of a wide range of instruments, from bonds with embedded options to asset-backed securities or structured notes. Because of the great importance of these markets and instruments, participants must become well-informed of the structure and uses of these securities and also of the increasingly complex techniques for valuing them. This module is designed to develop the MSc students understanding of bond markets and securities theory and practice. It is an advanced course that covers the different types and features of these bond instruments and the fundamental analytical tools to price them. The principle objective is to forge a solid understanding of structuring techniques, portfolio strategies and products within the bond markets.

ECOM076 Alternative Investments New for 2013/14

This module provides a thorough overview of recent developments in investment strategies including a description of the peculiarities of alternative asset classes. The main emphasis will be on the various complementary investment vehicles, methods and industries, namely commodities, real estate and hedge funds.

The first part of the course concentrates on commodities, metals, energy and agriculture. The second part of the course focuses on alternative real estate financing and investment vehicles. The third part of the course offers an analysis of hedge fund strategies. The final part of the course provides an overview of additional alternative investments such as socially responsible funds, microfinance funds and other alternative investments.

ECOM077 Valuation and Private Equity

Private equity is a relevant source of capital for companies. This course explores the “private equity cycle”: (i) fund-raising and structure, (ii) investing and (iii) exit. As valuation plays a crucial role in this cycle, the course starts with valuation techniques: from traditional methods as DCF to more recent methodologies as real options. Strong emphasis is given to practical applications: a DCF model for a "target" company will be developed in-class and a real world case of Private Equity transaction will be exposed.

ECOM078 Actuarial Finance and Insurance

This module focuses on the modern technical and practical topics of today's actuarial profession. The quantitative aspects, both on the asset and liability sides as well the asset-liability matching (ALM), are key to this course. Students will have a full opportunity to become familiar with the details of the hot topics on the desks of senior quantitative professionals in the field today. These include the "internal model" vs. the "standard formula" in the regulatory framework, economic vs. regulatory capital modelling, the matching adjustment, and ALM.

ECOM079 Applied Wealth Management

This course introduces concepts in wealth management to be able to comprehend recent developments in the regulatory and economic framework behind the wealth management. The course will start at a level that is appropriate for students with an economics background enabling them to master the understanding of the relevant regulatory framework. It will start with the basic building blocks, i.e. regulatory environment, conduct of business rules, cash management, financial products, and move on to more applied topics, i.e. retirement planning, financial assets and markets etc.

Following the course, students should be able to (1) demonstrate the importance of regulatory framework within the context of wealth management; (2) analyse different financial products: insurance, retirement etc; and, (3) identify and discuss the points of contact between regulation and different types of investors, banks, corporations and other players in national and international financial markets.