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 Learning | Lecture materials | 18 | 1:00 | 18:00 | N/A |
| Guided Independent Study | Assessment preparation and completion | 1 | 15:00 | 15:00 | N/A |
| Guided Independent Study | Directed research and reading | 1 | 24:00 | 24:00 | N/A |
| Scheduled Learning And Teaching Activities | Small group teaching | 3 | 1:00 | 3:00 | N/A |
| Structured Guided Learning | Structured research and reading activities | 10 | 1:00 | 10:00 | N/A |
| Scheduled Learning And Teaching Activities | Workshops | 2 | 1:00 | 2:00 | N/A |
| Scheduled Learning And Teaching Activities | Drop-in/surgery | 8 | 0:30 | 4:00 | N/A |
| Guided Independent Study | Independent study | 1 | 24:00 | 24:00 | N/A |
| 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
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 exercise | 1 | A | 100 | 2000 words |
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
Reading Lists
Timetable
- Timetable Website: www.ncl.ac.uk/timetable/
- ECO3021's Timetable