ECO3021 : Economics of Risk and Uncertainty
ECO3021 : Economics of Risk and Uncertainty
- Offered for Year: 2024/25
- Module Leader(s): Professor John Sessions
- Owning School: Newcastle University Business School
- Teaching Location: Newcastle City Campus
Semesters
Your programme is made up of credits, the total differs on programme to programme.
| Semester 1 Credit Value: | 10 |
| ECTS Credits: | 5.0 |
| European Credit Transfer System | |
Pre-requisite
Modules you must have done previously to study this module
| Code | Title |
|---|---|
| ECO2101 | Microeconomic Analysis |
Pre Requisite Comment
Or equivalent.
Co-Requisite
Modules you need to take at the same time
Co Requisite Comment
N/A
Aims
To develop students' understanding of how individual decisions are made in the presence of risk and
uncertainty, with applications to especially financial decisions but also to other decisions where risk and uncertainty are present.
Outline Of Syllabus
The course begins with the development of the basic theories of choice under uncertainty, such as Expected Utility Theory and Project Theory, as well as the prescriptive and descriptive effectiveness of such theories. Application of the basic theory to financial decision making is the considered. The course then moves on to a detailed study of the interaction of real markets and financial markets. The role of financial markets in allocating risk, how financial assets are priced and the role of expectation are issues addressed in the course.
Learning Outcomes
Intended Knowledge Outcomes
An in-depth knowledge of the theoretical and empirical concepts of how choices are made under uncertainty; an ability to critically analyse the use and limitations of these tools to identify their strengths and limitations to understand a range of issues in the economics of risk and uncertainty.
Intended Skill Outcomes
Application of economic reasoning to issues in risk and uncertainty. The development of the ability to solve analytical problems associated with risk. Critical learning, thinking and problem solving, written and mathematical analysis; refer to refereed articles to gain a deep understanding of academic perspectives with respect to arguments related to the economics of risk; effective oral presentation of economic arguments.
Teaching Methods
Teaching Activities
| Category | Activity | Number | Length | Student Hours | Comment |
|---|---|---|---|---|---|
| Scheduled Learning And Teaching Activities | Lecture | 15 | 1:00 | 15:00 | PIP Lectures |
| Scheduled Learning And Teaching Activities | Small group teaching | 3 | 1:00 | 3:00 | PIP Seminars |
| Guided Independent Study | Independent study | 1 | 82:00 | 82:00 | Reading, enhancing lecture notes, seminar preparation, revision. |
| Total | 100:00 |
Teaching Rationale And Relationship
Lectures explain the basic economic theory underpinning the economics of risk and uncertainty.
Seminars enhance learning and provide an opportunity for students to monitor their own progress through problem solving and discussions and orally present economic arguments relating to the economics of risk and uncertainty.
Private study provides opportunity for students to monitor their own progress through problem solving and discussions.
Reading Lists
Assessment Methods
The format of resits will be determined by the Board of Examiners
Exams
| Description | Length | Semester | When Set | Percentage | Comment |
|---|---|---|---|---|---|
| Written Examination | 120 | 1 | A | 100 | N/A |
Formative Assessments
Formative Assessment is an assessment which develops your skills in being assessed, allows for you to receive feedback, and prepares you for being assessed. However, it does not count to your final mark.
| Description | Semester | When Set | Comment |
|---|---|---|---|
| Prob solv exercises | 2 | M | Seminar questions provided |
Assessment Rationale And Relationship
The written exercise at the end of Semester 1 is designed to encourage study and to test student understanding of the fundamental theoretical and empirical underpinnings of selected topics within the economics of risk and uncertainty
In the case of an alternative assessment for semester 1 (100% of the module mark) being necessary due to circumstances, the Module Leader will in discussion with the DPD and the University, discuss possible acceptable online alternatives, such as a take home exam delivered online with a set time limit to complete (24 hours or less as deemed appropriate).
Timetable
- Timetable Website: www.ncl.ac.uk/timetable/
- ECO3021's Timetable
Past Exam Papers
- Exam Papers Online : www.ncl.ac.uk/exam.papers/
- ECO3021's past Exam Papers
General Notes
Original Handbook text:
Welcome to Newcastle University Module Catalogue
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Disclaimer
The information contained within the Module Catalogue relates to the 2024 academic year.
In accordance with University Terms and Conditions, the University makes all reasonable efforts to deliver the modules as described.
Modules may be amended on an annual basis to take account of changing staff expertise, developments in the discipline, the requirements of external bodies and partners, and student feedback. Module information for the 2025/26 entry will be published here in early-April 2025. Queries about information in the Module Catalogue should in the first instance be addressed to your School Office.