Economics

Consumers and firms interact in markets, motivated by their self-interests. Yet, remarkably, these selfish interactions result in efficient market outcomes, clearing markets and balancing supply and demand. This raises the question: is there an ‘invisible hand’ guiding them toward these desirable outcomes?

We will provide you with the building blocks of graduate-level microeconomics. We will cover the standard economic models of individual decision-making under different environments, 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 module, you will be able to analyse decision-making, derive individual and market demand curves, the interplay among economic agents in markets, and explain the concept of market equilibrium and its welfare properties.

What explains business cycle fluctuations in modern economies? Can fiscal or monetary policy interventions improve macroeconomic performance? And what determines economic growth over long periods of time? This module provides students with an introduction to modern macroeconomic theory at the postgraduate level, as an aid to understanding contemporary macroeconomic issues. The module covers short-term fluctuations in macroeconomic performance (e.g., in GDP, unemployment or inflation) and how macroeconomic policy may be used to address these, as well as the determinants of long-term economic growth. The emphasis will be on learning theoretical concepts and analytical techniques, to evaluate macroeconomic issues and to understand theoretical mechanisms behind empirical patterns.

Writing a dissertation is the culmination of your master’s programme. What are the skills you need to do this independent, original research project? You will be guided through the iterative process of developing and refining your dissertation proposal so you will be ready to dedicate yourself full-time to it in summer term. Based on your initial ideas, you will be matched with a supervisor to help you refine your research question and identify the relevant literature, research methods and actions you will need to answer it. Lectures and seminars will introduce the main empirical strategies for causal inference. You will learn about identification based on observables, randomized control trials, difference-in-differences, instrumental variables, and regression discontinuity design. You will also use econometric software in the analysis of data and estimations. By the end of the module, you will be able to analyse datasets using these methods and present a refined dissertation proposal that will appropriately apply one or more of these methods to your question.

Writing a dissertation is an exciting opportunity to conduct your own original piece of research at a high level under the guidance of your dissertation supervisor, a specialist in your area of interest. You will go into depth, investigating and specialising in your interest area whilst developing advanced research skills. Applying these skills means you won’t just graduate with knowledge in your area, but you’ll be able to investigate and research other topics so you can grow and adapt with the changing business world throughout your career.

This module incorporates a collaborative arrangement with either Brac University or North South University in Bangladesh. This involves spending a month in Bangladesh during the late summer term, where you will be co-supervised by academics from both Kent and Bangladesh. This experience offers the opportunity to travel, immerse yourself in a different culture, and be introduced to NGOs and other partners affiliated with the Bangladeshi universities. Writing a dissertation offers an exciting opportunity to carry out your own original research at an advanced level, guided by supervisors who are experts in your chosen field. You will explore your area of interest in depth, honing your expertise while developing advanced research skills. These skills will not only deepen your understanding but also equip you to investigate new topics, enabling you to adapt and grow in the ever-evolving business landscape throughout your career.

International trade is a key issue on the world agenda and has considerable effects on countries’ businesses and consequently economies. The effects occur at the micro level of firms and households as well as at the macro level, where they are the subjects of government policy debates. International trade takes advantage of the tools of economic analysis to study the issues raised by the economic interaction between sovereign states. This module provides you with an in-depth understanding of current issues and theoretical debates in international trade, together with their policy implications. It also provides the knowledge and skills necessary for interpreting related studies of countries at different levels of development. Skills you will develop as part of this module include critical thinking for decision making and data analysis.

Are you interested in the global financial markets? Do you want to know what drives a country’s exchange rate and what determines an open economy’s current account position? This module is designed to introduce you to the main theoretical and empirical models of international financial relations in open-economy context. You will find out about the most widely debated topics in international finance, such as exchange rates, capital flows, financial crises, current account and debt dynamics..  You will build  the economic foundations for a full understanding of these debates from a rigorous point of view. Working on the areas of financial economics and development (be it on private or public institutions) requires a solid knowledge of the topics studied in this module. We will focus not only on the analytical side of the stories but also on their empirical relevance. You will learn the strong foundations of the theory and empirics of international macroeconomics and finance, and analyse the impact of international monetary flows on national economies.

Economies worldwide are confronted with severe environmental problems. How can we apply environmental economics to help design, implement and evaluate environmental policies in developed and developing economies?  We will discuss the properties of economic growth models with environmental elements and their implications for long-run sustainable development. Then you will explore environmental valuation techniques and how these can be incorporated into economic decision-making processes to contribute to sustainable economic growth and development. You will gain knowledge of the key non-market valuation techniques that are used to monetarily value environmental goods and services. You will be equipped to contribute to improving the protection and management of natural resources and the wider environment, with career opportunities in national and local government, environmental regulation, environmental consultancy, NGOs and research organisations.

Money and credit perform a range of crucial functions in market economies. We study the microeconomic foundations of money and credit, and the roles played by money and credit markets in contributing to macroeconomic growth, fluctuations and crises. We also consider the roles of government institutions including central banks and financial regulators within modern markets for money and credit. The module makes use of theoretical models to aide understanding and analyse policy. These models are motivated by and tested against historical and contemporary evidence.  We explore and compare a variety of frameworks for organising monetary policy and the particular challenges facing modern central banks in how they implement monetary policy today. We understand the microeconomic foundations of banking and how these should influence financial regulation, examining the linkages between the private banking sector, central banks and monetary policy throughout the module.

How does economic development happen and why, in many instances, do we see ‘development failures’? In the first part of the module, you will learn about different aspects of the development phenomenon such as industrialisation, structural transformation, migration, fertility decline, and technological change. In the second part, you will learn about institutional failures – political, legal, social and economic – and how individuals, social groups and governments deal with these failures (using informal institutions, social networks and various policy interventions). We will use both classical texts, and modern theoretical and empirical tools for studying the behaviour and constraints of individuals, households and firms in developing country settings. Throughout, we will emphasize (i) the use of rigorous theoretical models to understand the process of economic development and strategic interaction between agents; and (ii) identifying causal effects in empirical analysis.

How do investors construct the best portfolio, and why is the portfolio the best for the investor? Why do some assets have higher returns than others? This is a classic module on advanced financial economics that provides the technical foundation of economic analysis of portfolio problems and asset pricing. The module covers key economic principles, such as discounting, diversification, expected utility, and no-arbitrage, and discusses each asset class, such as bonds, equities, and their derivatives (instruments), emphasizing the general idea behind them. Although different types of assets require different methods of valuations and risk control, the basic principles are common to all asset classes. The economic analysis of capital market instruments provides a solid platform for understanding, interpreting, and developing analytical models of the dynamics of financial markets and making informed decisions on their basis. The foundations are central for careers among financial market actors as well as at national or international institutions that oversee and regulate financial market activity.