Academic excellence for business and the professions

Economics at City

Javier Ortega

Deputy Head (Teaching and Learning)

Department of Economics

Open Day, 29 June 2013

What is economics?

-We could try with a famous definition (Lionel Robbins, An Essay on the Nature and Significance of Economic Science, 1932)

“Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”

What about this one:

...or we try with examples...

Why would an individual choose to take education? (a BSc at City, for instance?)

Why do individuals take education?

To answer this question, what most economists would do is to:

(i) Build a mathematical model analysing the decision of the individual.

(ii) Use data and statistical techniques (econometrics) to assess whether the predictions of the model are supported by the data.

Why do individuals take education?

(i) Mathematical model

We would for this make a series of assumptions.

For instance:

-The decision maker is the individual that would take education, not his/her parents...

-The individual is rational (compares the costs and benefits of taking education).

-The preferences of the individual can be represented mathematically by a utility function.

And many other assumptions...

Why do individuals take education? Two examples of models

*Becker (1964)’s Human Capital Theory

-Education is an investment that the individual makes (analogous to physical capital investment).

-Sacrifice made in the present which enables the individual to acquire skills that raise her future productivity and income.

*Spence (1973)’s Signalling Hypothesis

- Education beyond a basic level does not increase individual productivity.

- prior to employing individuals, firms cannot observe the characteristics of potential employees:

→ not possible to distinguish a gifted/hard working individual from a less gifted/lazy individual

Why do individuals take education?

→ education is thus an instrument to identify individuals having “good” characteristics, as these individuals will be successful in their studies

Which one is (more) true?

(ii) Econometric analysis

Pischke (2007): in 1966-67 the school year in West Germany was shortened by 2/3 for students in certain regions

-“Difference in differences analysis”: see if the earnings of students that had a shortened school year ended up being lower than the earnings of those whose who kept the same school year.

-result: No. Shorter school year, but same earnings.

→ evidence against the human capital theory.

The Department of Economics at City

Michael Ben-Gad

Head of Department

PhD, Univ. of Chicago

Macroeconomics

Claudia Jefferies

Student Matters Mediator

PhD, Univ. Basel

Economic History

Alice Mesnard

PhD, EHESS (Paris)

Development Economics

Andy Denis

Dir. Undergraduate Studies

PhD, City University London

History of Econ. Thought

Firat Yaman

PhD, Univ. of Texas

Labour Economics

Keith Pilbeam

PhD, European Univ. Institute

Foreign Exchange & Financial Markets

Patricia Cubí-Mollá

PhD, Univ. Alicante

Health Economics

The Department of Economics at City

Giulia Iori

PhD Physics, Univ. Roma

Financial Economics

Mireia Jofre-Bonet

PhD, Univ. Pompeu Fabra

Health Economics

Xeni Dassiou

PhD, Univ. College London

Industrial Organisation

Laura Delaney

PhD, Trinity College Dublin

Financial Economics

Albert Banal-Estañol

PhD, Univ. Autònoma Barcelona

Financial Economics

Ravi Mukherjee

PhD, SUNY Stony Brook

Microeconomics

The Department of Economics at City -Deputy Head of Department (Teaching & Learning)

Javier Ortega (PhD, EHESS Paris)

Labour Economics; Economics of Language; Political Economy

-Director of Research:

-Alev Atak (PhD, Queen Mary)

Klaus Zauner (PhD, University of California, San Diego)

Industrial Organisation; Game Theory.

-PhD Programme Director: Joe Perlman (PhD, Imperial College)

Macroeconomics; Monetary Policy.

Finance; Econometrics.

-Saqib Jafarey (PhD, New York University Macroeconomics; Monetary Economics; Development Economics.

The Department of Economics at City -Neelam Jain (PhD, University of Minnesota)

Financial Economics; Industrial Organisation; Micro Theory.

-Giovanni Melina (PhD, Birkbeck) Macroeconomics.

-Gabriel Montes-Rojas (PhD, Univ. Illinois, Urbana-Champaign)

Development Economics; Econometrics; Labour Economics.

-Victoria Serra-Sastre (PhD, London School of Economics)

Health Economics; Applied Microeconomics.

-Sergiu Ungureanu (PhD, Duke University) Micro Theory, Decision Theory, Behavioural Economics.

Further details:http://www.city.ac.uk/economics/academic-staff-profiles

-Yang Zu (PhD, University of Amsterdam)

Financial Econometrics; High Frequency Financial Time Series

The Department of Economics at City

- Undergraduate degrees

-Business Economics/International Business Economics

- BSc Economics - BSc Economics & Accountancy

- BSc Financial Economics

- Competition & Regulation

- Economic Evaluation of Heath Care

- Economics - Financial Economics

- Health Economics.

- MSc Programmes

- Development Economics

- PhD in Economics

Entry Requirements for 2014-2015

- 360 UCAS tariff points (typically AAA at A-Level, or AAB with an additional 'AS' Level at grade B or higher)

- A-level Maths only required for BSc Financial Economics

- GCSE: English Language and Mathematics at grade B (or equivalent)

- IB: 35 points

- See webpage for further details on entry requirements with other qualifications or e-mail socsiug@city.ac.uk

- Students with AAA qualify for the £2,000 Lord Mayor’s Scholarship, AAB £1,000.

BSc Economics

- The BSc Economics is a highly flexible degree.

- Opportunity to gradually hone quantitative skills.

- There is the option to take more mathematical or less mathematical routes

- However, you must study statistics, calculus of optimisation and econometrics.

- Many options from a range of subjects in the 3rd year, some in the 2nd year.

BSc Financial Economics

- The BSc Financial Economics is a more specialised degree.

- More mathematical content

however, all Maths beyond A-level taught within the programme

- Beyond specialised skills and knowledge, this degree affords the opportunity to signal determination, ability and focus to employers in the financial sector.

BSc Economics & Accountancy

- Aims to develop students’ analytical abilities in economics while providing with the opportunity to pursue a career in accountancy.

- Based at the Economics Department. More Economics than Accountancy. Accountancy courses taught at Cass Business School.

- Carries exemptions from examinations for the main professional bodies in accounting.

- Advantage of being more flexible than standard accounting degrees: as quantitative training in economics, opens the door to further studies in economics or more economic related jobs (e.g. economic consultancies)

Content of Economics Degrees: Year 1

Introduction to Microeconomics

Introduction to Macroeconomics

Topics in Applied Microeconomics

Topics in Applied Macroeconomics

Data Analysis 1 & 2

Post A-level Maths 1 & 2

Post-GCSE Maths 1 & 2

Management & Financial Accounting

Introduction to Law

Economics Financial

Economics Economics & Accountancy

Content of Economics Degrees: Year 2

Intermediate Microeconomics 1& 2

Intermediate Macroeconomics 1 & 2

Introductory Econometrics

Post-GCSE Maths 3

Intermediate Mathematical Methods

Financial Accounting

Financial Analysis

Economics Financial

Economics Economics & Accountancy

Global Financial Markets

Public Economics Electives (1 or 2) Global Financial Markets

Intermediate Maths Methods International Trade

Intermediate Econometrics

Year 3: Economics and Financial Econ.

Financial Economics Applied Econometrics

Economics Financial

Economics

Electives:

-Intro to Financial Derivatives -Economics Project -Econ. European Integration -Monetary Economics

-Development Economics

-Labour Economics -Advanced Quantitative Economics

-History of Econ. Thought

-Regulation & Competition -Industrial Organisation -Topics in Health Econ. -Company Law

-Money & Banking

Corporate Finance

Introduction to Financial Derivatives

-Corporate Finance

6 electives OR 4 electives + Project 4 electives OR 2 electives + Project

-Management Accounting

Year 3, Economics & Accountancy

Electives (choose one):

- Applied Econometrics

- Corporate Finance

- Financial Management

- Advanced Financial Accounting

- Financial Accounting Theory

- Company Law

Core:

-Intro. Fin. Derivatives

-Monetary Economics

-Labour Economics

-Econ. European Integration

-Development Economics

-Advanced Quantitative Economics

Assessments - Students are assessed by exams (80% weighting) and

coursework (20% weighting), and the project if taken.

- Coursework takes many forms: essays, presentations, in-class tests, lab exercises.

- Students must pass each year before proceeding to the next year. Final mark: year average of module marks with weights 10%, 30%, and 60% for respectively the 1st, 2nd , and 3rd year.

- Exams are unseen – 2 hours long per module.

- The final year is weighted highest because the courses are more advanced and the requirements are higher.

BSc Programs in the Department

- The department has a reputation for producing graduates who are technically and analytically strong.

- Undergraduates taught by full-time, research-active staff members.

-Students in Economics and Accountancy benefit from meeting Cass staff and students.

- Emphasis on “thinking as an economist”.

BSc Programs in the Department - The Financial Times

- The Economist

BSc Programs in the Department

- Extensive teaching and learning resources developed by our own staff, via our e-learning system.

- One-to-one support and additional computer training, including drop-in clinics.

- Problem-solving workshops as well as conventional lectures.

BSc Programs in the Department

- Possibility for "Integrated Professional Training" work placement between 2nd and 3rd years.

- We have formal links with universities in Spain, Italy, the Netherlands, and France via the `Erasmus programme' -- an opportunity for you to do a `student exchange', get a year of your degree for zero fees, PLUS a bursary.

- Recently, three students at the Treasury, one at Barclays, one at the Global Economy Group in the Foreign & Commonwealth Office, one at Goldman Sachs.

Recent BSc Graduates

- Teng Wang studying MPhil in Economics at Cambridge.

- Lu Han doing a PhD in Economics at Cambridge.

- Mohammed Al-Saffar, Policy Advisor/Economist, HM Treasury.

- Stefany Barker, doing an MSc in Management, Information Systems and Innovation at the LSE.

- Krishan Patel, working at Deutsche Bank.

- Oxana Sivko, Royal Bank of Scotland.

- Olivier Scialom, Marketing Manager, Rocket Internet.

-Scott Doughty, Mercer Investment Consulting.