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Report of the Faculty Board of Economics and Politics on amendments to the regulations for the Economics Tripos

The FACULTY BOARD OF ECONOMICS AND POLITICS beg leave to report to the University as follows:

1. In this Report the Faculty Board of Economics and Politics propose new arrangements for the Economics Tripos.

2. The Economics Tripos in its current form dates back to the early 1970s, although the Faculty Board have subsequently made a number of minor changes to the structure and to the content of individual papers. Candidates normally take the Part I examination at the end of their first year of study, followed by a two-year course leading to Part II of the Tripos. There is a Preliminary Examination to Part II which is taken by almost all candidates at the end of their second year: this examination is not classed. All candidates taking Part II (with the exception of Affiliated Students, and those who transfer to Economics after taking other Part I examinations) are normally required to have passed the Economics Qualifying Examination in Mathematics ('the EQEM'). This examination is taken during the candidate's first year of study (i.e. at the same time as the Part I examination), but is assessed separately on a pass-fail basis. A special provision permits any student to be a candidate for this examination on two distinct occasions, and therefore allows a student who fails the examination the opportunity to retake it.

3. In 1997 the Faculty Board embarked on a comprehensive review of all aspects of undergraduate teaching provision, and of the structure of the Economics Tripos. The committee charged with this review consulted widely with University and College Teaching Officers, and with students, and as a result put forward a number of recommendations for changes to the Faculty's teaching procedures. They also proposed a set of changes to the arrangements for the Tripos which are set out below. These changes were approved by the Faculty Board on 11 June 2001. The revised regulations set out in the Annex to this Report were approved by the Faculty Board at its meeting on 8 October 2001.

4. In proposing these new arrangements, which are set out in greater detail in paragraphs 5 to 14 below, the Faculty Board seek:

(i) to modify the arrangements for the teaching and assessment of mathematics in the first year of the Tripos in a way which better reflects the changing characteristics of students as they arrive in Cambridge;
(ii) to provide a mechanism which will allow students to display their abilities more effectively to prospective employers, by introducing a classed Tripos examination in the second year of the course;
(iii) to reduce the extent to which assessment is based purely on traditional written examinations, by introducing a compulsory dissertation into the final Part II Tripos examination.

5. When the Economics Qualifying Examination in Mathematics ('the EQEM') was introduced in the early 1970s approximately half of all students admitted to read Economics had studied no mathematics in their last two years at school. The EQEM course was therefore designed to provide such students with a basic knowledge of those topics in A-level Mathematics courses which were essential for the more advanced analytical material covered in Part II of the Tripos. In these circumstances it was appropriate for the Faculty Board to establish the EQEM as a qualifying examination, which did not contribute to the candidate's Tripos result, and which had its own separate procedure for examination entry. Such a procedure also allowed the Faculty Board to exempt students with A-level Mathematics, or an equivalent qualification, from taking the examination. The alternative strategy of including this material in Part I of the Tripos would have forced many candidates to repeat material which they had already covered at school, and would also have allowed such material to contribute to the outcome of the assessment process. Changes in the characteristics of students admitted to read Economics mean that these arguments are no longer relevant. More than 90% of students are now admitted with A-level Mathematics or an equivalent qualification, and most of the remainder have studied Mathematics at AS-level. In response to this development the Faculty Board have eliminated the provision which granted exemption to those with A-level Mathematics. They have also modified the EQEM course to include a number of techniques, notably constrained optimization, which are not normally included in school mathematics courses, and to devote more attention to the mathematical analysis of simple economic models. These changes mean that the material covered in EQEM is now much more closely related to the content of the two Economics papers in Part I of the Tripos.

6. In view of these changes, the Faculty Board believe that the arguments which originally favoured the establishment of a separate Qualifying Examination in Mathematics no longer apply, and that it is now appropriate that students' performance in this component of the course should contribute towards their class in Part I of the Tripos. They therefore propose that the course which currently leads to the EQEM should be fully integrated into Part I. They propose to do this by replacing the existing Paper 3 in Part I of the Tripos, which is currently entitled 'Statistics and quantitative methods', by a new Paper 3 entitled 'Quantitative methods in Economics'. This new paper would act as an examination both for the existing first-year course in statistics, and for the material currently examined in the EQEM: the paper would be set in a number of sections to ensure that candidates did not neglect either of these two components. Details of these arrangements are set out in the draft supplementary regulations which form an Appendix to this Report. In order to avoid overloading the new combined paper, the existing coverage of statistics would be reduced by eliminating some components of the current course. These changes would slightly reduce the overall first-year student workload (which is widely felt to be excessive) and, by reducing the burden of lecturing and examining, would also allow the Faculty Board to redeploy resources elsewhere in the Tripos and graduate programme. The change in the prior mathematical background of Economics students has meant that the overall failure rate in the EQEM has been low in recent years, and the Faculty Board do not expect this change to lead to any noticeable increase in the number of students who fail Part I.

7. The current arrangements for the Preliminary Examination to Part II of the Economics Tripos specify that the examination is not classed: this feature also dates back to the early 1970s. However the growing emphasis placed by prospective employers on examination performance has led the Faculty Board to consider whether it is appropriate to retain an unclassed examination at the end of the second year of a student's undergraduate career. As a result of consultation with students it appears that the introduction of a classed second-year examination would be welcomed as providing a better signal of the high quality of Cambridge students. It would also facilitate the position of those intending to apply for graduate study in the UK and abroad. The fact that the second-year examination in the Economics Tripos is not classed poses particular difficulties for Affiliated Students, since they have no public record of their aptitude for Economics and performance in Cambridge prior to graduation.

8. After considerable discussion and consultation the Faculty Board take the view that although classing the existing Preliminary Examination would meet some of these concerns, it would not be an entirely satisfactory solution. The Board have always regarded the study which Economics undergraduates undertake in what is usually the second year of their Cambridge career as being of the greatest importance in their intellectual development as economists, and they think that this would best be recognized by giving the second-year examination the status of a full Tripos examination. Doing this would also simplify the position of the small number of students who wish to transfer to other Triposes (notably Management Studies) after two years of Economics. The Board therefore propose that the existing Preliminary Examination to Part II of the Economics Tripos be replaced by a new Tripos examination, to be entitled Part IIA, and that the existing Part II examination be renamed Part IIB. The proposed Part IIA of the Tripos would be very similar to the existing Preliminary Examination, although the altered status of the examination does imply some minor changes to the regulations concerning the number of papers which a candidate can offer. The Board also propose the abolition of the existing concession, by which Affiliated Students taking this examination are only required to take three, rather than four, papers. They regard such a concession (which is not extended to undergraduates who transfer from other Triposes to Economics) as being a historical anomaly which cannot easily be justified.

9. The Faculty Board are not at this stage proposing any changes to the structure or content of the second-year course, so that this would effectively be identical to that currently leading to the Preliminary Examination for Part II. However in the course of their consultation exercise they have become aware of a widespread desire for an increase in the number of optional subjects which can be studied in the second year. They therefore propose that the regulations for the new Part IIA examination should be framed in a way which would allow some flexibility by permitting them, after giving suitable notice to candidates, to introduce a new optional paper (to be called Paper 7) in some area of Economics. The Board also intend to explore the possibility of allowing students taking Part IIA of the Economics Tripos to receive credit for study of a foreign language, along the line set by similar arrangements which have recently been introduced in the Engineering Tripos and certain parts of the Natural Sciences Tripos. They would regard the introduction of such a component, which is a common feature of Economics degrees in other UK universities, as being an innovation which would make the Tripos more attractive to both students and their prospective employers.

10. The existing regulations for the Preliminary Examination to Part II allow candidates to offer an optional paper (Paper 4) which provides an introduction to sociology. These arrangements date back to an era before the establishment of the Faculty of Social and Political Sciences, when teaching for the paper could be offered by members of the Faculty of Economics and Politics. However for many years this paper has effectively been 'borrowed' from Part I of the Social and Political Tripos, and there has been no separate teaching for students reading Economics. The Faculty Board therefore propose that this established arrangement be formalized in the regulations for the new Part IIA. Such a step will make the relationship between the two papers clearer to prospective students. Although it is unlikely that a student would choose to take Part I of the Social and Political Sciences Tripos, followed by Part IIA of the Economics Tripos, such a transfer would be permitted by the new regulations. The Board therefore propose a new regulation (Regulation 9) which would prohibit such a candidate from offering the same paper in both examinations.

11. The final component of the Faculty Board's proposals concerns the structure of the new Part IIB examination. Although this is largely based on the existing Part II, which has provided an effective and flexible framework for many years, the Faculty Board wish to propose some modifications. The existing arrangements require all candidates (other than the very small number of students taking Part II in one year after transferring from another Tripos) to take a compulsory four-hour paper (Paper 3), in which they are required to answer a single question under examination conditions at some length. The Board's experience in recent years has been that this is not an effective way of assessing candidates' knowledge of the subject or analytical ability. Candidates almost invariably choose to answer a question on a topic which is related as closely as possible to one on which they have already written a supervision essay, and then concentrate on producing as much pre-packaged argument as they can muster in the allotted time. The fact that a single unseen essay contributes one-sixth of a candidate's total Tripos mark imposes a significant amount of stress on students, and leads them to view the outcome of this component of the examination as being excessively dependent on luck. The Faculty Board therefore propose the abolition of this paper, and the consequent renumbering of other papers in the examination.

12. However the Faculty Board continue to believe that it is important that there should be a component of the Part IIB examination which assesses candidates' ability to develop a persuasive and well-structured argument which combines economic analysis with relevant historical or statistical evidence. The Board believe that it is unrealistic to expect students to do this in the context of a conventional unseen examination. They therefore propose that all candidates for Part IIB (other than the very few who take the course in one year after transferring from another Tripos) should be required to submit a dissertation on a topic of their own choice. This topic should be linked either to one of the Part IIB papers or to a short list of prescribed fields on which Faculty members can provide adequate supervision. In consequence the Board also propose that the current arrangements for Part II of the Tripos, which allow candidates the option of submitting a dissertation in place of two optional papers, should be rescinded. The Board recognize that there are cases where the opportunity to concentrate effort on a single topic offered by a two-paper dissertation allows candidates to produce original work of high quality, and provides a valuable training in research methods. However the expansion of Economics as an academic discipline since the 1970s means that undergraduates are now much further from the 'research frontier' than they were when the two-paper dissertation was introduced. Furthermore the development of taught Master's courses as a prerequisite for Ph.D. research has reduced the value of an extended undergraduate dissertation as a component of research training. In these circumstances the Faculty Board take the view that the advantages of the existing two-paper dissertation are outweighed by the disadvantages, and in particular by the risk that it can allow candidates to specialize excessively in their final year of undergraduate study. The proposed arrangements for the approval of dissertation titles, and the submission of dissertations, are closely based on those which currently apply in Part II of the Tripos: these arrangements have worked well. However, in view of the reduced weight attached to the dissertation in the overall scheme of the examination, the Board feel it appropriate to propose a reduction in the prescribed word limits.

13. Under the current arrangements for Part II of the Economics Tripos candidates can offer a range of papers which are borrowed from the Social and Political Sciences Tripos. The Faculty Board value these arrangements, and propose that they should continue to apply in Part IIB. They propose, however, certain minor changes. Firstly they take the view that, given the reduction in the number of papers to be taken by candidates (from six to five, counting the dissertation as one paper), it is inappropriate for a candidate for the Economics Tripos to take more than one optional paper in politics or sociology. A similar argument leads them to limit the scope of the dissertation to exclude purely political or sociological topics. Finally the regulations which come into effect in 2002 for Part IIB of the Social and Political Sciences Tripos allow candidates for certain optional papers to be assessed on the basis of two submitted essays, rather than a written examination. The Faculty Board feel that Economics candidates who take optional papers in politics or sociology should be encouraged to undertake a broad study of the area concerned, and therefore propose that the essay mode of assessment should not be available to students taking the Economics Tripos.

14. In drawing up these proposals the Faculty Board have considered carefully the position of those students who wish to transfer to the Economics Tripos after studying other subjects in Cambridge for one or two years. The Board regard the existing arrangements for candidates wishing to transfer after one year as satisfactory, and therefore propose that under the new regulations such candidates should take Parts IIA and IIB of the reformed Tripos. Where candidates transfer to Economics after two years, and after gaining Honours in their second year of residence, the Board propose that they should be able to complete the requirements for the B.A. Degree by obtaining Honours in either Part IIA, or Part IIB, of the Economics Tripos. The Board envisage that the total number of such candidates will be small, and that most will prefer the option of taking the Part IIA course. However the Board also believe that in a few cases, notably where candidates transfer to Economics from History or a similar non-mathematical Tripos, the Part IIB course (which offers greater opportunity to take optional papers in areas such as Economic History and Politics) would be more suitable. The arrangements which the Board propose for such candidates, which are set out in Regulation 22 below, allow the candidate concerned the concession of taking only four written papers in the examination: this concession is modelled on that which currently applies to candidates taking the existing Part II in one year. The Board is confident, after taking account of the experience of those transferring to the Economics Tripos under the existing arrangements, that the two alternatives which it now proposes for such candidates both represent intellectually demanding, but feasible, courses of study for final year undergraduates. Accordingly it believes that it is appropriate to allow candidates to choose between these alternatives on the basis of their previous study and intended careers.

15. The Faculty Board have also taken advantage of this opportunity to propose a new set of supplementary regulations for individual papers in the Tripos. The existing supplementary regulations provide substantial detail about the content and technical level of individual papers. The Board accept that it is important that such comprehensive information about the content of individual papers should be provided to students. However the Board have for several years published a detailed brochure which describes all its undergraduate courses, and which is distributed free of charge to all students reading for the Economics Tripos. More recently the Board have ensured that an electronic version of this brochure is available on the Faculty website. The Board believe that these procedures are an effective way of distributing the appropriate detailed information about course content to students and Directors of Studies, and that it is therefore now appropriate to restrict the content of supplementary regulations to a brief overview of the subject matter of individual Tripos papers, and an account of the form and conduct of the examination. supplementary regulations for the new Tripos have been approved by the Faculty Board, and are set out in the Appendix to this Report.

16. As a result of the proposed revision of the regulations for the Tripos, minor amendments to the regulations for Affiliated Students, and for the Gladstone, PricewaterhouseCoopers, and Adam Smith Prizes, are also included in this Report.

17. The Faculty Board have given careful consideration to the arrangements for teaching and examining under the proposed regulations. They are confident that these proposals can be implemented successfully within the resources available to the Faculty. They also believe that the proposals will not imply any increase in the total amount of supervision given by Colleges to undergraduates reading Economics.

18. The Faculty Board recommend:

I. That the regulations for the Economics Tripos be replaced by the regulations set out in the Annex to this Report in accordance with the timetable contained in Temporary Regulation 26.

II. That Regulation 6 of the regulations relating to Affiliated Students who are candidates for the Economics Tripos (Statutes and Ordinances, p. 173) should be amended, with effect from 1 October 2002, so as to read:

[Economics

The right to take Part II of the Economics Tripos (Old Regulations) not earlier than the fifth term after the student's first term of actual residence under the same conditions as if he or she had previously obtained honours in Part I of that Tripos; provided that the student has passed, or has been granted exemption from, the Economics Qualifying Examination in Mathematics.]1

Economics

The right to take Part IIA of the Economics Tripos (New Regulations) not earlier than the second term after the student's first term of actual residence under the same conditions as if he or she had previously obtained honours in Part I of that Tripos.

III. That the regulations for the PriceWaterhouseCoopers Prize in Economics (Statutes and Ordinances, p. 825) be amended, with effect from 1 October 2002, so as to read:

Regulation 2.

2. The prize shall be awarded by the Examiners for Part IIA of the Economics Tripos for an outstanding performance in that examination.

IV. That the regulations for the Gladstone Memorial Prize (Statutes and Ordinances, p. 759) be amended, with effect from 1 October 2003, so as to read:

Regulation 2.

2. The Prize shall be awarded by three Adjudicators appointed by the General Board, who shall be paid by the Gladstone Memorial Trustees a sum approved by the Council. One Adjudicator shall be appointed each year by the Examiners for Part IIB of the Economics Tripos, one by the Examiners for Part II of the Historical Tripos, and one by the Examiners for Part IIB of the Social and Political Sciences Tripos.

V. That the regulations for the Adam Smith Prize Endowment Fund (Statutes and Ordinances, p. 850) be amended, with effect from 1 October 2003, so as to read:

Regulation 1.

1. Two Adam Smith Prizes shall be awarded annually by the Examiners for Part IIB of the Economics Tripos, as follows:

(a) the Adam Smith Prize shall be awarded for the best overall performance in Part IIB;
(b) the Adam Smith Dissertation Prize shall be awarded for the best dissertation submitted by a candidate for Part IIB.

8 October 2001 PARTHA DASGUPTA, Chairman ANDREW HARVEY D. NEWBERY
  D. BHIMJEE SEAN HOLLY A. W. A. PETERSON
  WILLIAM BROWN KENJIRO HORI ROBERT ROWTHORN
  H-J. CHANG MICHAEL KITSON P. TINSLEY
  K. J. COUTTS TONY LAWSON S. WATZKA
  CHIAKI HARA G. MEEKS MELVYN WEEKS


ANNEX

ECONOMICS TRIPOS

NEW REGULATIONS

1. The Economics Tripos shall consist of three Parts. A separate class-list shall be published for each Part.

2. The scheme of the examination for Part I of the Tripos shall be that defined in Regulations 14 and 15 and for Part IIA of the Tripos that defined in Regulations 16-18 and for Part IIB of the Tripos that defined in Regulations 19-25.

3. The Faculty Board of Economics and Politics shall have power to make from time to time supplementary regulations further defining all or any of the subjects of the examination and regulations determining the credit that shall be assigned to such subjects respectively and marking out the lines of study that are to be pursued by the candidates, and to publish lists of books recommended to the candidates and to modify or alter any such supplementary regulations or lists as occasion may require. Sufficient notice of any such modifications or alterations shall be given to avoid hardship to candidates. The Faculty Board shall summon every year a conference of Lecturers on the subjects included in the Tripos, at which these supplementary regulations and lists shall be considered and suggestions for their revision received.

4. A student may be a candidate for honours in Part I if at the time of the examination he or she has kept one term, provided that three complete terms have not passed after his or her first term of residence.

5. The following may present themselves as candidates for honours in Part IIA, if they have kept four terms:

(a) a student who has obtained honours in Part I of the Economics Tripos and has not subsequently obtained honours in any other Honours Examination, provided that six complete terms have not passed after his or her first term of residence;2
(b) a student who has obtained honours in any other Honours Examination, in the year after so obtaining honours, provided that nine complete terms have not passed after his or her first term of residence;

6. A student who has obtained honours in any other Honours Examination other than Part I of the Economics Tripos may be a candidate for honours in Part IIB in the year after so obtaining honours, provided that the student has kept seven terms and that twelve complete terms have not passed after his or her first term of residence.2

7. No student shall be a candidate for more than one Part, or for any Part and also for another Honours Examination, in the same term.

8. No student who has been a candidate for any Part shall again be a candidate for the same Part.

9. A candidate shall not offer in any Part of the Tripos a paper that he or she has previously offered in another University examination.

10. In each Part the names of the students who obtain honours shall be arranged in three classes, of which the second shall be divided into two divisions. The names in the first and third classes and in each division of the second class shall be arranged in alphabetical order.

11. The Faculty Board shall nominate such number of Examiners as they may deem sufficient for each Part of the Tripos.

12. The Faculty Board shall have power to nominate one or more Assessors to assist the Examiners in any Part of the Tripos. Assessors shall be responsible for setting the paper or papers in the subject or subjects assigned to them, and for looking over the work of the candidates therein, and shall present a written report to the Examiners. Assessors shall have a right to attend the meetings of the Examiners, but shall not have a vote in determining the class-list.

13. In each Part the questions proposed by the Examiners or Assessors shall be submitted to and approved by the Examiners for that Part collectively.

Part I

14. The scheme of examination for Part I of the Tripos shall be as follows:

Paper 1. Microeconomics.

Paper 2. Macroeconomics.

Paper 3. Quantitative methods in economics.

Paper 4. Political and sociological aspects of economics.

Paper 5. British economic history.

Each paper shall be of three hours' duration, except Paper 3. The examination for Paper 3 shall consist of a written paper of three hours' duration and the submission of project work undertaken by the candidate; details of the project work required and the arrangements for its submission shall be prescribed from time to time by the Faculty Board.

15. In Part I every candidate shall offer all the papers specified in Regulation 14.

Part IIa

16. The scheme of examination for Part IIA of the Tripos shall be as follows:

Paper 1. Microeconomics.

Paper 2. Macroeconomics.

Paper 3. Theory and practice of econometrics I.

Paper 4. Economic development.

Paper 5. Modern societies (Paper 2 of Part I of the Social and Political Sciences Tripos)

Paper 6. Mathematics for economists and statisticians.

Paper 7. A subject in economics.3

Papers 1-2, and 4-7, shall all be set for three hours each. The examination for Paper 3 shall consist of a written paper of two hours' duration and the submission of project work undertaken by the candidate; details of the project work required and the arrangements for its submission shall be prescribed from time to time by the Faculty Board.

17. A candidate for Part IIA shall offer

  (a) Papers 1, 2, and 3
and (b) one or two papers chosen from among Papers 4-7.

18. If under Regulation 17(b) a candidate offers two papers, the paper of these two on which the Examiners judge the candidate's performance to be least good shall be taken into account only if that would be to the candidate's advantage.

Part IIb

19. The scheme of the examination for Part IIB of the Tripos shall be as defined in the following Schedule:

Papers 1, 2. Economic principles and problems.

Paper 3. Labour.

Paper 4. Economic theory and analysis.

Paper 5. Mathematical economics.

Paper 6. Banking, money, and finance.

Paper 7. Public economics.

Paper 8. The economics of under-developed countries.

Paper 9. Industry.

Paper 10. Theory and practice of econometrics II.

Paper 11. Time series and financial econometrics.

Paper 12. A subject in economics.3

Paper 13. A subject in economics.3

Paper 14. A subject in economic history.

Paper 15. A subject in economic history.3

Paper 16. A subject in sociology III (Paper Soc. 5 of the Social and Political Sciences Tripos in any year that the subject of that paper is 'Modern Britain').

Paper 17. A subject in the field of sociology and politics.

Each paper shall be of three hours' duration, except Paper 10. The examination for Paper 10 shall consist of a written paper of three hours' duration and the submission of an account of a project undertaken by the candidate; the work to be undertaken for the project, and the arrangements for the submission of the report, shall be prescribed from time to time by the Faculty Board.

20. Except as provided in Regulation 22 a candidate for Part IIB shall offer

  (a) Papers 1 and 2
and (b) two or three papers chosen from among Papers 3-17, provided that a candidate must offer at least one paper chosen from Papers 3-15;
and (c) a dissertation, submitted in accordance with the provisions of Regulation 25, within the field of any one of Papers 1-4, 6-9, 12-15, or within a field from among other fields which the Faculty Board shall specify from time to time, provided that a candidate shall not be permitted to submit a dissertation within the field of any paper (other than Papers 1 and 2) which he or she is offering in the examination;

21. If under Regulation 20(b) a candidate offers three papers, the paper of these three on which the Examiners judge the candidate's performance to be least good shall be taken into account only if that would be to the candidate's advantage, provided that at least one of Papers 3-15 shall always be taken into account.

22. A candidate who takes the examination in the year next after obtaining honours in any Tripos examination other than Part IIA of the Economics Tripos shall offer Papers 1 and 2 and not less than two nor more than three papers chosen from among Papers 3-17, provided that a candidate must offer at least one paper chosen from Papers 3-15. If a candidate offers three such papers, that paper from among the three in which the Examiners judge the candidate's work to be least good shall be taken into account only if that would be to the candidate's advantage, provided that at least one of Papers 3-15 shall always be taken into account.

23. For Papers 12, 13, and 15 the Faculty Board shall announce by the division of the Lent Term of the year preceding the examination a total of not more than three subjects for each paper. In any case where the Faculty Board announce more than one such subject for a paper, a candidate may offer not more than one of the subjects announced. For Paper 17 a candidate may not offer more than one of the subjects specified in the supplementary regulations for this paper.

24. Some choice of questions shall be allowed in all papers.

25. (a) A candidate for Part IIB under Regulation 20 shall submit an application to the Secretary of the Faculty Board, specifying the proposed topic of the dissertation, and the paper or field within which it falls. Applications shall be considered by the Examiners; the approval or rejection of a candidate's proposed topic shall be communicated to the candidate. A candidate whose proposed topic is rejected may submit a revised application.

(b) When a candidate's proposed topic has been approved by the Examiners, no change shall be made in it, except that a candidate may subsequently apply for permission to revise the topic.

(c) The timetable for the submission and the approval of applications under sub-paragraphs (a) and (b) shall be announced by the Faculty Board not later than the end of the first quarter of the Michaelmas Term. All applications shall be submitted in accordance with detailed instructions issued by the Board.

(d) A dissertation shall be in English, and shall be of not less than 6,000 words and not more than 7,500 words in length,4 including notes and appendices but excluding bibliography. Candidates will be required to give full references to sources used.

(e) Two copies of the dissertation, in typewritten or computer-printed form, shall be submitted, in accordance with detailed arrangements approved by the Faculty Board, so as to reach the Secretary of the Faculty Board not later than the first day of the Full Easter Term in which the examination is to be held. Together with the dissertation each candidate shall submit

(i) two copies of a brief synopsis of the contents of the dissertation, and
(ii) a declaration signed by the candidate that the dissertation is his or her own work, unaided except as may be specified in the declaration, that it does not contain material which has already been used to any substantial extent for a comparable purpose, and that it does not exceed the maximum permitted length.

(f) The Examiners shall have power to examine a candidate viva voce on the subject of his or her dissertation.

Temporary Regulation

26. The examinations for the Economics Tripos shall be held under the New Regulations for the first time:

for Part I in 2003,

for Part IIA in 2003,

for Part IIB in 2004.

The examinations for the Economics Tripos shall be held under the Old Regulations for the last time:

for Part I in 2002,

for Part II in 2003.

SUPPLEMENTARY REGULATIONS

Part I

Papers 1 and 2

Both papers will emphasize theoretical issues (some questions may also be set which require knowledge of the history of economic thought).

Paper 1. Microeconomics

This paper will deal with the following: the theory of the consumer: choice and demand; the theory of the producer; costs and supply; supply, demand, and market equilibrium; partial and general equilibrium analysis; demand and supply in factor markets; market equilibrium under various forms of industrial structure; market failure and the role of the state; elementary game theory and bargaining.

Paper 2. Macroeconomics

The paper will provide an introduction to the following topics. National income accounting. Classical theory of output and employment. Elementary neoclassical growth theory. Quantity theory of money. Economic fluctuations and short-run equilibrium. Interaction between goods and financial markets: the IS-LM model; Simple open economy macroeconomics; Aggregate supply and the labour market; Stabilization policy.

Paper 3. Quantitative methods in economics

This paper will cover the application of simple statistical and mathematical techniques to a range of problems in economics. The written examination for the paper will be set in two sections, and will carry 80% of the total mark for the paper. The remaining 20% of the total mark will be accounted for by the submission of an essay on a topic in applied economics in accordance with Regulation 14. Each section of the written paper will carry equal weight. Candidates will be required to answer questions from both sections. Section A will comprise a number of questions on mathematical techniques, and the application of these techniques to simple problems in economic theory. The section will contain both short and long questions, which will be clearly distinguished: candidates will be required to answer three short, and one long, questions. Section B of the paper deals with the manner in which statistics contributes to the study of economic problems and to the discussion of issues of public policy. Its main purpose is to test candidates' ability to perform relatively simple statistical derivations, to analyse problems in applied economics, and their knowledge of statistical sources. The section will contain both short and long questions, which will be clearly distinguished: candidates will be required to answer three short, and one long, questions. Statistical tables, and a list of the most important statistical formulae, will be provided.

A detailed schedule of the specific mathematical and statistical techniques covered in this paper will be published by the Faculty Board not later than the start of the Michaelmas Term of the academical year in which the examination is to be held.

Paper 4. Political and sociological aspects of economics

This paper will stress the influence of political and some sociological considerations on these and related topics. It will be concerned with the interrelationship between the exercise of economic and political power, account being taken of conflicts of interest between, and the relative power of, different classes and groups in society, as well as the constraints imposed by the relationship between, and organization of, political and economic structures. It will consider the processes by which policies come to be formulated and the way in which employers' organizations, trade unions, the City, the military, the political parties, the media, and the bureaucracy of the State influence the decision-making process. It will analyse the role of the State in relation to employment and wage policy, international economic policy, the rate of economic growth, and poverty.

Paper 5. British economic history

This paper will be concerned with three main themes in the industrial development of Britain between 1750 and 1939: the industrial revolution, problems of growth and trade in the mature economy up to 1914, and the inter-war years; it will also cover some of the demographic and social changes associated with this industrial development. The specific topics which will be covered in the course of the analysis of the main themes include the long-run growth of output, productivity, and the standard of living; the costs of growth; demographic changes; capital accumulation and technical progress; entrepreneurship; foreign trade, the export of capital, and the role of the Empire; changes in the industrial structure; the labour market; government economic policies.

Part IIa

Papers 1 and 2. Microeconomics and Macroeconomics

These papers are concerned with the theoretical groundwork of the topics covered in Papers 1 and 2 of Part I of the Economics Tripos, with emphasis on tools of analysis and their use. In Paper 2 some questions are included which deal with the history of economic thought.

The Examiners shall set a number of questions which require the candidates to manipulate a simple mathematical model of some aspect of economic behaviour, and to provide an economic interpretation of such a model. A minimum of one, and a maximum of three, such questions may be set in a single paper. The level and range of mathematical techniques required shall not be higher than that required in Paper 3 of Part I of the Economics Tripos. The questions will be designed to test candidates' economic insight as well as their mathematical skills.

Paper 3. Theory and practice of econometrics I

This paper deals with the manner in which statistics contributes to the study of economic and social problems and to the discussion of issues of public policy. Its main purpose is to test candidates' understanding of the intuition and concepts which underlie elementary statistical techniques, and their ability to analyse problems in applied economics, by bringing to bear on them relevant economic theory, knowledge of statistical sources, and relatively simple statistical derivations. A detailed schedule of the specific statistical techniques covered in this paper will be published by the Faculty Board not later than the start of the Michaelmas Term of the academic year in which the examination is to be held.

The examination for Paper 5 will consist of two components, as follows:

(a) A two-hour written paper which tests candidates' understanding of the logic of the methods covered in the course.
(b) Project work, involving use of the Faculty's computing facilities, on topics chosen by the candidate from a list of topics specified by the Examiners. Candidates will be required to select two topics, one involving exercises in the application of statistical methods to economic data and the other involving the application of data sources and statistical methods to economic problems.

Each component of the examination carries equal weight.

Paper 4. Economic development

This paper provides an introduction to basic concepts and theories in development economics and to their application to the comparative industrialization and development experience of selected countries. It is designed to provide a useful foundation for candidates proposing to take Part IIB specialist options in development economics or economic history but it also constitutes a self-contained one-year course for those interested in studying this field, but not necessarily planning to continue with it further.

The concepts and theories to be covered are: theories of imperialism; the concept and measurement of development; the evolution of the structure of output and employment during the course of development; interactions with the world economy (different foreign trade strategies; the role of foreign capital); the role of different sectors (agriculture, industry, and the services) in the development process; the role of the State; socioeconomic issues (demography and income distribution).

The examination will contain two sections. Section A will comprise purely analytical questions. Section B will require candidates to relate their analysis of theoretical issues to comparative historical evidence from countries to be announced by the Faculty Board at the beginning of the Michaelmas Term of the academical year in which the examination is to be held. Candidates will be required to answer one question from Section A and two questions from Section B.

Paper 5. Modern societies (Paper 2 of Part I of the Social and Political Sciences Tripos)

Paper 6. Mathematics for economists and statisticians

This paper deals with those portions of linear algebra, differential and integral calculus, differential and difference equations, probability theory, and statistics which are the principal mathematical groundwork of the subjects covered in Papers 5 and 11 of Part IIB of the Economics Tripos.

Paper 7. A subject in economics

This paper will not be set until further notice.

Part IIb

Papers 1 and 2. Economic principles and problems

These papers will deal with the scope and method of economics, with fundamental ideas, and with the application of the methods of economic analysis to economic problems. The papers will be designed to afford scope for the exercise of analytical power in abstract reasoning and in interpreting economic data. A few questions of a more advanced analytical character may be set, but the papers as a whole will be so framed as to be within the competence of those who have not made a study of advanced methods of analysis. A main object will be to test the power of candidates to apply their theoretical reasoning to actual problems. Candidates will, therefore, be expected to show a general knowledge and understanding of the role of the Government in economic affairs and of the working and effects of the principal economic institutions in the fields of production and distribution, of money and banking, of international economics, of employment, labour, and wage determination. Knowledge of the British economy is a basic requirement. Candidates should be able to analyse British problems in their international setting. Some questions will be asked about international economic problems and institutions, and about the problems of different types of economy. The questions set will not require such detailed knowledge as may be appropriate in Papers 3-9, but an understanding of general principles.

Paper 3. Labour

The paper has the following subject matter: the setting of pay and employment (levels and structures), as dependent on employer demand and household supply; theories of human capital, internal markets, informational failure, mobility, industrial conflict, discrimination, and collective organization and activity; current issues in industrial relations and the management of the employment relationship; gender issues in, and public policies towards, the labour market. Candidates will be expected to know the main empirical characteristics of the British labour market, and some comparative attributes of other advanced economies, as well as to draw selectively on contributions from sociology and political science.

Paper 4. Economic theory and analysis

In this paper questions will be set of a more advanced character than in Papers 1 and 2, and the emphasis will rest on the theoretical aspects of economics. The paper will provide opportunity for the use of analytical methods of various types, but will be so framed, taken as a whole, as to be within the competence of those who have no knowledge of advanced mathematics.

Paper 5. Mathematical economics

Candidates for this paper will be examined in those parts of economic theory where mathematical methods of exposition offer particular advantages, e.g. of lucidity, conciseness, and rigour. They will be expected to use such methods in the discussion of particular economic theories and economic models. In particular, it is a feature of this way of theorizing that assumptions are to be clearly stated and their relation to conclusions made precise.

Some questions in this paper will be marked with an asterisk. Extra credit will be given for answers to questions with asterisks, and a candidate will not obtain a first-class mark on the paper unless he or she completes at least one such question. Relatively little credit will be given for answers to parts of questions.

Paper 6. Banking, money, and finance

This paper provides an introduction to advanced topics regarding the economic functions of money, credit, banking, financial asset markets, and monetary policy.

The topics to be covered in the paper will include: portfolio theory; valuation of financial assets and options; coordination of monetary and fiscal policy; bank risk management and regulation; and the design and transmission of monetary policy. Questions for this paper will assume knowledge of analytical models, relevant empirical evidence, and recent significant events regarding banking, financial markets, and monetary policy in developed and emerging economies.

Paper 7. Public economics

This paper will have the following subject matter: Public goods; externalities and environmental policy; preference revelation mechanisms; optimal tax and benefit systems; effects of taxation on behaviour; social security; normative and positive theories of the state; political decision-making and political economics; public expenditure and tax systems in practice. The paper will require knowledge of the relevant theories and institutions.

Paper 8. The economics of under-developed countries

This paper will deal with the problems of economic growth and development in developing countries. It will provide a framework to understand how developing countries display common failures of information and legal structures and how this in turn affects their institutional and economic development. It will also demonstrate how the standard analytical tools of micro-economics and macro-economics can be used to understand key economic problems in less developed countries.

Candidates will be expected to show familiarity with the theoretical issues involved and be able to apply their knowledge to the experience of a number of developing countries. They will also be expected to have a basic knowledge of econometric techniques (at the level of Paper 5 in Part IIA of the Tripos), and to be able to use this to assess the empirical evidence on development.

Paper 9. Industry

This paper will have the following subject matter: The modern business enterprise: its internal organization and functioning and their implications for its economic performance; competition, selection, and external constraints on corporate behaviour; law and the corporation; alternative theories of the firm; financial systems, capital structure, and corporate financial choices; multinational corporations; the market for corporate control. The evolution of firms, markets, and industries; standard models of imperfect competition, strategic behaviour; the relationship between industrial structure, behaviour, and performance; information technology and networks; technical change. Deindustrialization and structural changes in UK industry; issues of competition and industrial policies in the context of the international economy.

The Faculty Board will publish a list of prescribed readings for this paper at the beginning of the Michaelmas Term of the academic year in which the examination will be held. Students will be expected to be familiar with these readings, and to develop an understanding of the relevant literature which lies beyond them. The examination for this paper will be set in two sections. Section A will contain not less than three questions which relate closely to the topics covered in the prescribed readings, while Section B will contain not less than eight questions on more general topics associated with the subject matter of the paper. Candidates will be required to answer one question from Section A, and three questions from Section B.

Paper 10. Theory and practice of econometrics II

This paper will deal with ways in which statistical data and methods can assist in the study of economic and social problems. It will not require the use of advanced mathematical methods.

The examination for this paper consists of a written paper of three hours' duration and the submission of an account of a project undertaken by the candidate. The written paper and the account of the project will carry equal weight. In the written paper candidates will be required to answer a number of questions relating to statistical methods and sources and their applications and to show knowledge in each of these areas. Statistical tables will be provided.

The project to be undertaken by the candidate shall be chosen from a list of topics specified by the Examiners. The topics will be announced not less than two weeks before the last day of Full Lent Term. Candidates will be required to submit an account of the project, in the form of an extended essay by a date not later than one week after the first day of Full Easter Term. This account, which must be in English, should not exceed 4,000 words in length (inclusive of notes and appendices)5. It should report the statistical sources and techniques used by the candidate as well as presenting the candidate's results and conclusions. Candidates are expected to show familiarity with a range of statistical techniques which are widely used for the analysis of economic data and to be able to select the appropriate techniques and data for the analysis of the topic which they have selected.

Candidates will be expected to show knowledge of a specified range of statistical techniques, in addition to those prescribed for Paper 3 in Part I of the Economics Tripos and Paper 5 in Part IIA of that Tripos. A detailed schedule of the techniques which are required for this paper will be published by the Faculty Board not later than the start of the Michaelmas Term of the academic year in which the examination is to be held. Candidates will also be expected to show familiarity with major econometric studies in areas to be decided by the Faculty Board from time to time, and with the most important statistical and economic problems involved in the analysis of economic issues in these areas.

Until further notice the areas will include:

(i) Consumer behaviour;
(ii) Investment behaviour;
(iii) UK imports and exports;
(iv) Wages, prices, and unemployment;
(v) Macroeconomic dynamics;
(vi) Macroeconometric models of the UK economy;
(vii) Labour supply models.
(viii) static panel data models;
(ix) discrete choice models in econometrics.

Not more than six of these areas will be covered each year. At the beginning of the Michaelmas Term each year the Faculty Board will announce the areas to be covered in that year and will issue a list of references associated with each area.

Paper 11. Time series and financial econometrics

This course is designed to give students a good grounding in econometric theory, particularly as it relates to time series. Proofs and derivations will play a more important role than in Paper 11. Candidates will be expected to show a good understanding of both the statistical theory and the way in which the methods can be used in economics and finance.

Questions may be posed on regression, estimation procedures such as maximum likelihood and generalized methods of moments, test statistics, model selection, simultaneous equations, limited dependent variables, the properties of time series models and the way in which they are fitted and selected, dynamic models and cointegration. Financial topics may include predictability of asset returns, volatility, portfolio analysis, CAPM model, factor model and options.

The use of calculators and statistical tables is permitted in the examination. The paper will be divided into two sections, one consisting of short questions, all of which should be attempted, and one consisting of longer questions, of which two should be attempted.

Paper 12. A subject in economics

Paper 13. A subject in economics

These papers will not be set until further notice.

Paper 14. A subject in economic history

This paper will, until further notice, be a paper entitled 'World Depression in the interwar years'. Its main focus will be on the causes and courses of the Great Depression of the 1930s, but the events of the 1920s including the inflation and deflation of 1919-21 will also receive attention. Topics covered will include the transfer problem and international monetary arrangements, the growth of protection and the development of trading blocs, monopolistic tendencies and changes in income distribution, technology and structural changes, the agrarian depression, and the comparative experience of different countries with regard to unemployment, especially following the trough of the cycle.

The main countries considered will be Britain, France, Germany, the USA, and Japan, but the paper will not be exclusively confined to these, and, in particular, the experience of some of the main primary producing countries will also be studied.

Paper 15. A subject in economic history

This paper will not be set until further notice.

Paper 16. A subject in sociology III (Paper Soc. 5 of the Social and Political Sciences Tripos in any year that the subject of that paper is 'Modern Britain')

Candidates for this paper who are taking the Economics Tripos must be examined by written examination.

Paper 17. A subject in the field of sociology and politics

Until further notice the subjects specified for this paper, from which candidates are required to select one, will be

(a) An interdisciplinary subject III (Paper Int. 5 of the Social and Political Sciences Tripos),
(b) The sociology and politics of South Asia (the subject specified for Paper In. 27 of Part 11 of the Oriental Studies Tripos),
(c) The sociology and politics of Latin America (Paper Int. 7 of the Social and Political Sciences Tripos),
(d) A subject in modern politics II (Paper Pol. 7 of the Social and Political Sciences Tripos in any year that the subject of that paper is 'Western Europe').

1 The regulation in square brackets will be rescinded with effect from 1 October 2003.

2 See also the regulations for Affiliated Students.

3 This paper will not be set until further notice.

4 One A4 page consisting largely of charts, statistics, or symbols shall be regarded as the equivalent of 250 words; the contents of such pages must be presented so as to be readily legible.

5 One A4 page consisting largely of charts, statistics, or symbols shall be regarded as the equivalent of 250 words; the contents of such pages must be presented so as to be readily legible.


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Cambridge University Reporter 14 November 2001
Copyright © 2011 The Chancellor, Masters and Scholars of the University of Cambridge.