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Module

ECO3021 : Economics of Risk and Uncertainty

  • Offered for Year: 2020/21
  • Module Leader(s): Professor John Sessions
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semesters
Semester 1 Credit Value: 10
ECTS Credits: 5.0

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.

Teaching Methods

Please note that module leaders are reviewing the module teaching and assessment methods for Semester 2 modules, in light of the Covid-19 restrictions. There may also be a few further changes to Semester 1 modules. Final information will be available by the end of August 2020 in for Semester 1 modules and the end of October 2020 for Semester 2 modules.

Teaching Activities
Category Activity Number Length Student Hours Comment
Structured Guided LearningLecture materials181:0018:00N/A
Guided Independent StudyAssessment preparation and completion115:0015:00N/A
Guided Independent StudyDirected research and reading124:0024:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching31:003:00N/A
Structured Guided LearningStructured research and reading activities101:0010:00N/A
Scheduled Learning And Teaching ActivitiesWorkshops21:002:00N/A
Scheduled Learning And Teaching ActivitiesDrop-in/surgery80:304:00N/A
Guided Independent StudyIndependent study124:0024:00N/A
Total100:00
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.

Assessment Methods

Please note that module leaders are reviewing the module teaching and assessment methods for Semester 2 modules, in light of the Covid-19 restrictions. There may also be a few further changes to Semester 1 modules. Final information will be available by the end of August 2020 in for Semester 1 modules and the end of October 2020 for Semester 2 modules.

The format of resits will be determined by the Board of Examiners

Other Assessment
Description Semester When Set Percentage Comment
Written exercise1A1002000 words
Formative Assessments
Description Semester When Set Comment
Prob solv exercises2MSeminar 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

Reading Lists

Timetable