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
|Semester 2 Credit Value:||10|
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.
|Guided Independent Study||Assessment preparation and completion||1||32:00||32:00||N/A|
|Scheduled Learning And Teaching Activities||Lecture||7||2:00||14:00||N/A|
|Guided Independent Study||Directed research and reading||1||25:00||25:00||N/A|
|Scheduled Learning And Teaching Activities||Small group teaching||4||1:00||4:00||N/A|
|Guided Independent Study||Independent study||1||25:00||25:00||N/A|
Teaching Rationale And Relationship
1. Lectures develop the course material focusing on theoretical issues.
2. Seminars develop a specific topic through an in-class experiment.
3. Workshops will focus on solving analytical problems to reinforce the material introduced in lectures.
The format of resits will be determined by the Board of Examiners
|Prob solv exercises||2||M||Seminar questions provided|
Assessment Rationale And Relationship
Unseen exam is designed to test study across a broad range of subject areas.