ECO3021 : Economics of Risk and Uncertainty
- Offered for Year: 2023/24
- 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
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.
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
| 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).
Reading Lists
Timetable
- Timetable Website: www.ncl.ac.uk/timetable/
- ECO3021's Timetable