Courses - Faculty of Business And Economics
Economics
Stage I
Understanding the Global Economy
Economics affects our daily lives and the global environment in many ways. Through the media we are constantly made aware of price increases, interest rate changes, exchange rate movements and balance of payments problems, growth and recessions, standard of living comparisons, regional trading agreements. What does it all mean and how does it all work?
Restriction: BUSINESS 115, ECON 101, 111, 191
Restriction: ECON 101, 111, 152, 191
Principles of Economics
Analysis of issues that affect our daily lives, including pricing decisions by firms and their impact on our cost of living; game theory and strategic decision-making; tackling problems of pollution and global warming; and how governments use monetary and fiscal policies to stimulate economic growth and address unemployment and inequality.
Prerequisite: BUSINESS 115 or ECON 151
Restriction: ECON 101, 111, 191
Stage II
Microeconomics
Study of the allocation of scarce resources among competing end uses. Intermediate-level analysis of the economic behaviour of individual units, in particular consumers and firms. Although the focus is on perfectly competitive markets, attention is also given to other types of markets. Analysis also includes concepts of expected utility and uncertainty, and welfare economics.
Prerequisite: ECON 101 or 152 or 180 points in Mathematics or Statistics with a GPA of 5 or higher and a B or higher in MATHS 130
Managerial Economics
Applies economic principles to achieve better management and strategic decisions in real-world business situations. Covers costs and investment, transaction costs and vertical integration, behavioural economics, incentives and agency problems, bargaining and non-linear pricing, product bundling and product differentiation, entry deterrence and regulation of business. Uses theory, case studies and worked problems to develop and reinforce understanding.
Prerequisite: 15 points from BUSINESS 115, ECON 101, 152, 191
Macroeconomics
Provides an introduction to the dynamic microfoundations of macroeconomics, and demonstrates how we can utilise these foundations (i) to understand the trends and fluctuations of macroeconomic aggregates like national output, unemployment, inflation and interest rates, and (ii) to predict the outcome of alternative government policies related to current economic problems of New Zealand and the rest of the world.
Prerequisite: ECON 111 or 152 or 180 points in a BSc major in Mathematics or Statistics with a GPA of 5 or higher and a B or higher in MATHS 130
Game Theory
An introduction to the fundamental concepts of non-cooperative and cooperative game theory: the concept of strategy; two person constant sum non-cooperative games and the minmax value; n-person non-cooperative games and Nash equilibrium; examples and applications in auctions, bargaining and other economic models, political science and other fields; the idea of backward induction and sub-game perfection; introduction to games in coalitional form; the core and the Shapley value.
Prerequisite: 15 points from BUSINESS 115, ECON 101, 151, 152, 191, ENGSCI 111, MATHS 108, 130, PHIL 101
Introduction to Econometrics
Empirical analysis in economics. Focuses on harnessing the power of data and regression techniques to estimate relationships and test hypotheses based on economic models. Emphasises the identification of causal effects critical to policy analysis, decision-making and strategic planning. Covers applications of econometrics in a variety of areas using a statistical computer package. Prerequisite: 15 points from ECON 152, MATHS 108, 130, STATS 101, 102, 108, 125, 191, or at least 18 credits in Mathematics at NCEA Level 3 including at least 9 credits at merit or excellence, or B in CIE A2 Mathematics, or 5 out of 7 in IB Mathematics: Analysis and Approaches (SL or HL)
Economics of Global Development
The development of the international economy and changing economic relationships that have taken place since the late nineteenth century. The causes and consequences of growing interdependency among nations are examined. Changing patterns of trade and migration of capital and labour are analysed, as are cyclical and secular trends in output, employment and investment. The focus is on the development of institutions as well as the economic and social conditions that induce and validate change.
Prerequisite: ECON 111 and 101 or 191, or ECON 152
International Economic Policy
An introduction to contemporary issues in international trade and finance, including tariff wars, optimal currency areas, financial crises, debt default and the role of institutions like the IMF. The course provides a conceptual framework to understand how and why nations trade, the forces underpinning financial globalisation, and the political economy of international trade and monetary relations.
Prerequisite: ECON 111 and 101 or 191, or ECON 152
Economic Policy
Explores how economic policy can address socioeconomic challenges like climate change, poverty, sustainability, and the changing nature of work. Examines the role of microeconomic policy in areas such as competition, transport, education, health, labour, international trade, and immigration. Discusses how fiscal and monetary policy can promote welfare and economic stability. Traces the evolution of policy in New Zealand and overseas.
Prerequisite: 15 points from BUSINESS 115, ECON 151, 152
Behavioural Economics
Scientists and philosophers have long pondered whether human decisions are primarily deliberative or more prone to emotions. This course brings together findings from economics, psychology and neuroscience to discuss decision making at the level of individuals, within small groups and in more anonymous and impersonal market settings with an emphasis on the role of social norms and cognitive biases.
Prerequisite: 15 points from BUSINESS 115, ECON 151, 152, ENGSCI 111, MATHS 108, 130, PHIL 101, PSYCH 108, 109, STATS 101, 108
Stage III
Advanced Microeconomics
Advanced treatment of aspects of consumer theory, producer theory, and game theory. Applications of this basic theory to the analysis of some topics in uncertainty, contracts, auctions, oligopoly, and information economics.
Prerequisite: ECON 201 and 15 points from ENGGEN 150, ENGSCI 111, MATHS 108, 130
Economics of Labour Markets
The application of economics to labour issues that confront policymakers around the world. Examines how labour markets function and focuses on the use of economic frameworks to evaluate the effects of various policies, including education and training, welfare and taxation, workplace health and safety, minimum wages, and immigration. Discusses effective strategies to mitigate workplace discrimination.
Prerequisite: ECON 201
Law and Economics
Economic analysis of law and organisation, and the application of economics to property rights, patents and natural resource management. Includes: contracts, transaction cost analysis, classical contracting, long-run contracts, enforcement, role of market forces, risk aversion, remedies for breach, economic theory for torts, negligence rules, strict liability, multiple torts, product liability. Special topics may include: crime, insider trading, and business law.
Prerequisite: 15 points from ECON 201, 212, 232
Firms and Markets
An introduction to Industrial Organisation, the analysis of markets with imperfect competition. Industrial Organisation is concerned with the interdependence of market structure, firm behaviour and market outcome. Basic concepts of game theory will be systematically introduced and applied to study strategic firm behaviour in a variety of general and more industry-specific market settings. In each case, we will analyse the implications of the market behaviour for consumers and society and explore the potential role for public policy with instruments like regulation, competition policy and patent policy.
Prerequisite: ECON 201
Economic Policy Analysis
Examines the design, implementation and analysis of economic policy. Integrates economic theory with empirical methods to evaluate responses to issues that confront policymakers in government and industry. Potential topics include housing, infrastructure and transport investment, climate and sustainability, productivity, employment, welfare and health programmes. Provides opportunities to engage with stakeholders in industry and government.
Prerequisite: ECON 201, 221
Advanced Macroeconomics
Designed to teach students modern macroeconomic analysis and focuses on the standard dynamic general equilibrium model, which is central to current macroeconomic research. Students are given a careful introduction to the overlapping generations version of this model and shown how this model can be adapted in different ways to address a wide variety of economic issues and policy questions.
Prerequisite: ECON 201 or 211, and 15 points from ENGGEN 150, ENGSCI 111, MATHS 108, 130
Advanced Econometrics
Development of the linear regression model, its basis, problems, applications and extensions: demand systems, time-series analysis including unit roots and co-integration, simulation and resampling methods including an exposure to practical computing classes.
Prerequisite: 15 points from ECON 221, STATS 201, 207, 208, 210, 225 and 15 points from ENGGEN 150, ENGSCI 111, MATHS 108, 130
International Trade
The main theories of international trade in goods and services, and of international movements of capital and labour. Partial equilibrium and general equilibrium analysis of the major instruments of trade policy, their economic effects, and the issues created by their use in practice. The economics of regional trading arrangements, such as free trade areas, customs unions and common markets.
Prerequisite: 15 points from ECON 201, 211, 232, 241
East Asian Growth and Trade
A study of the economic factors underlying the dynamic trade and growth performance of the major economies of contemporary East Asia, and of the impact of their development on New Zealand's international trading environment. Study of individual East Asian economies is strongly emphasised.
Prerequisite: 15 points from ECON 201, 211, 232, 241
Financial Economics
A study of the modern literature on corporate finance, investments and derivative securities. An analysis of consumption and investment decisions in the presence of time and risk, asset pricing models and market efficiency. The term structure of interest rates and various issues in debt and equity financing. The use of derivative securities, e.g., forwards and/or options to manage exchange rate risk.
Prerequisite: ECON 201 and 15 points from ENGGEN 150, ENGSCI 111, MATHS 108, 130
International Finance
A study of the modern literature on exchange rate markets, exchange rate determination and the implications of exchange rate movements for various economic issues. Students will gain an understanding of why exchange rates change, of financial market arrangements, and of the reasons for, and implications of, recent events in international financial markets.
Prerequisite: 15 points from ECON 201, 211, 232, 241
Public Economics
A study of the role of the state in a modern mixed economy; its roles, measurement and accountability. Topics include: welfare theory, theory of public goods, cost-benefit analysis, budgetary issues, taxation theory and practice, insurance markets, and social insurance.
Prerequisite: ECON 201
Energy and Environmental Economics
An overview of the theory and empirical practice of economic analysis as it is used in evaluating energy and environmental problems. Topics covered include natural resource economics, as well as electricity and oil markets. Other topics include environmental policy (pollution and economic efficiency); analysis of economic instruments, such as tradable property rights and pollution taxes; the allocation of non-renewable and renewable resources; and contemporary issues of growth, sustainable development and climate change.
Prerequisite: ECON 201
Special Topic: Urban Economics
Explores the growth and impact of cities, as well as the role of policies that impact their form, structure and economy. What explains the explosive growth in urbanisation over the last 100 years? How do firms and individuals decide where to locate? How can we address current urban problems like crime, poverty, traffic congestion, sprawl, gentrification and pollution?
Prerequisite: ECON 201
Health Economics
Examines questions around whether health can be bought, the impacts of pandemics such as COVID-19 and ways to respond. Focuses on issues related to the demand for health, infectious disease and demand for immunisation, health insurance and the medical care market. Explores some health care policies and their implications in developing and developed countries.
Prerequisite: ECON 201
Foundations of Economic Analysis
A grounding in the quantitative methods of economic analysis with application to commonly used formal models in microeconomics, macroeconomics and econometrics. The emphasis will be on the unifying structure of the theory with a systematic treatment of the mathematical techniques involved. Preparation for continuing study in economic theory and econometrics.
Prerequisite: ECON 201
Postgraduate 700 Level Courses
Microeconomic Theory
Advanced treatment of traditional topics from "core" microeconomics, including consumer theory and duality, expected utility theory, general equilibrium, game theory and the economics of information.
Industrial Organisation
Concerned with interdependence of firm behaviour, market structures and implications for consumers and society. Concepts from game theory are introduced and applied to study strategic firm behaviour in a variety of general and more specific market settings; Coverage includes the potential role for public policy with instruments like competition policy, patent policy and the regulation of public utilities such as telecommunication, electricity, water and gas.
Macroeconomic Theory and Policy
Discusses advanced analytical tools and concepts used in modern macroeconomics and shows how to apply these tools in policy settings. The focus will be on dynamic macroeconomic models with micro-foundations and their applications to understanding macroeconomic policy issues, such as growth, fluctuations, debt-crises, ageing, unemployment, and global imbalances.
Topics in Money, Banking and Finance
An advanced treatment of macroeconomics focusing on contemporary issues that have been brought into sharp relief since the global financial crisis. Topics include models of financial crises, the role of financial markets and liquidity, sovereign debt, the relationship between financial intermediation and the macroeconomy, and the (unorthodox) way in which central bank policy is now conducted.
Econometrics 1
Core econometrics including theory and applications. The development of the classical linear regression model and extensions to the most general case. Applications to types of linear models involving cross-section and time-series data, and simultaneous equation models. The method of maximum likelihood, other extrema estimators and associated methods of testing.
Econometrics 2
An overview of time series econometrics, designed to introduce a range of material in stationary and nonstationary time series including: modern model determination methods, unit root and co-integration theory, non-linear time series analysis and continuous time models. Students will be introduced to practical time series forecasting methods.
Topics in International Trade
Advanced treatment of selected developments in international trade theory including the link between trade and development and contemporary issues relating to trade strategies and structural adjustment policies with an emphasis on developing countries.
Trade Policy
Economic analysis of current trade policy issues, with an emphasis on the theoretical, empirical and policy dimensions of international trade negotiations in the WTO, and the spread of preferential trading arrangements such as free trade areas.
Advanced International Finance
A study of open-economy macroeconomic topics (theoretic, empirical and policy oriented), including models of exchange rate behaviour.
Public Economics and Policy
Fundamental theorems of public economics, market failure, public choice theory, and distribution; the role of the economist in the making of public policy in a modern mixed economy, ideologies and critiques of the market model, the economics of the welfare state, welfare and tax reform in New Zealand, and applied poverty issues.
Economics of Development
Contemporary issues in development economics. Topics include: the way economists' approaches to leading development issues have evolved to the present; and leading development issues, including sources of economic growth, the role of population, human capital and innovation, labour and migration, international trade and foreign aid, and strategies for sustainable economic development. There is emphasis on the 'Newly Industrializing Countries' and other Third World developing countries.
The History of Economic Thought
Covers a selection of topics in the history of economic ideas, including classical economics, post-classical microeconomics and macroeconomics including Keynesian, Austrian, institutional economics and behavioural economics. Topics in twentieth century economics and twentieth century debates on international monetary reform will be given emphasis.
Experimental Economics
Controlled decision-making experiments have become an integral part of economics, more so with the advent of behavioural economics, which incorporates key insights from other social sciences to add realism to the Homo Economics model of human behaviour. This course will cover a selection of topics in experimental and behavioural economics with applications to commercial decision-making and public policy.
Energy Economics
Discusses issues related to the economics of climate change including peak oil as well as regulation and market design issues for energy and carbon markets. Natural resource economics and electricity markets are covered in depth.
Special Topic: Health Economics
Examines contemporary issues in health economics including inequalities in healthcare access, utilisation and health outcomes. Application of economic frameworks and theory to inform decision-making around resource allocation and broader issues of health financing, especially in relation to current New Zealand health reforms and delivering equity under Te Tiriti o Waitangi as well as the United Nations Sustainable Development Goals.
Research Project - Level 9
Restriction: ECON 789
To complete this course students must enrol in ECON 788 A and B, or ECON 788
Dissertation - Level 9
To complete this course students must enrol in ECON 791 A and B, or ECON 791
Dissertation - Level 9
To complete this course students must enrol in ECON 792 A and B
Thesis - Level 9
To complete this course students must enrol in ECON 794 A and B
