(Statutes and Ordinances, p. 289)
The Faculty Board of Economics give notice of the amendment to certain supplementary regulations as follows:
By amending the detail for Paper 4 so as to read:
This paper considers the influence of political and sociological factors on economic affairs. It reviews the history of economic and social policy-making in the post-war period in Britain. It examines a variety of influences on policy: the political ideologies that inform the conduct of policy; the domestic and international institutions that provide the context within which policy is formed; the nature of power in government; and the broader social and economic processes that shape the environment in which economic policy is conducted. The paper examines the changing nature of institutions that have regulated the employment relationship and shaped labour standards with the decline of trade unions and the increased role of the law. As background to a wider understanding of the global economy, it introduces the economic analysis of property rights, civil liberties, social capital, income inequality, the family, religion, and terrorism.
By amending the detail for Papers 1, 4, 6, and 7 so as to read:
The paper covers the following topics in economic theory: consumer theory; producer theory; equilibrium and markets; welfare economics; game theory and industrial organization; introduction to decision-making under uncertainty; asymmetric information; financial markets.
The paper aims to develop a good understanding of macroeconomics at the intermediate level, and to provide a rigorous framework for macroeconomic analysis. The paper covers topics from five areas: intertemporal macroeconomics including the behaviour of consumption, investment, and labour supply; labour markets, unemployment, and inflation; monetary economics, interest rates, and the role of the banking system; open economy macroeconomics including foreign exchange rate fluctuations; macroeconomic policy.
Papers 1 and 2 will contain a number of questions that will involve candidates in manipulating simple mathematical models at a level of mathematical competence no higher than that required in Paper 3 in Part I of the Economics Tripos.
The paper introduces concepts and theories in development economics and applies them to the comparative development experiences of selected countries or regions. It is designed to provide a useful foundation for candidates proposing to take Part IIB specialist options in development economics or economic history. It also constitutes a self-contained one-year course for those interested in this field but not planning to pursue it further. The concepts and theories covered are: the concept and measurement of 'development'; models of growth and development, population growth, human and physical capital investment dual economy models; coordination failure and the big push; factor market failures in developing economies including insurance and credit; trade policy issues; inequality and growth; the political economy of development.
The examination will be in two sections. Section (1) will include purely analytical questions. Section (2) will require candidates to relate their analysis of theoretical issues to comparative historical evidence from a small number of countries, the current choice of which will be announced by the Faculty Board early in the academical year. Candidates will be required to answer one question from Section (1) and two questions from Section (2). Each answer will carry equal weight.
The paper covers those aspects of linear algebra, differential and integral calculus, differential and difference equations, probability theory, and statistical theory that are used in various parts of the Tripos. This paper is a pre-requisite for Paper 11 (Time series and financial econometrics) of Part IIB of the Economics Tripos and is recommended for those who plan to take Paper 6 (Banking, money, and finance) of Part IIB of the Economics Tripos.
The paper has the following subject matter: the determination of (the level and structure of) wages and employment by employer demand and household supply; theories of compensating differentials, human capital, internal labour markets, asymmetric information, labour 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 to other advanced economies. They should be familiar with the main sources of data on the British labour market and modern approaches to the analysis of such data. They should also be able to draw selectively on contributions from sociology and political science.
By amending the detail for Papers 7, 8, and 11 so as to read:
The paper studies the following subject matter: optimal taxation, externalities, and environmental policy; empirical evaluation of the effects of taxation and benefits on economic behaviour; social security; political decision-making and political economics; public expenditure and tax systems in practice. The paper will require knowledge of the relevant theories and institutions.
The paper deals with the problems of growth and development in developing countries. Standard analytical tools, microeconomic and macroeconomic, are used to analyse key economic problems. The paper provides a framework for the understanding of how market failures and institutional failures affect economic and institutional development. Candidates are expected to show familiarity with the theoretical issues, to apply theory to the experience of a number of developing countries, and to use basic econometric knowledge to assess empirical evidence.
The paper provides a grounding in econometric theory, particularly as it relates to time series. Proofs and derivations play a more important role than in Paper 10. Candidates will be expected to show an understanding of both the statistical theory and the way in which statistical 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, 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 option pricing.
The use of approved calculators and statistical tables is permitted in the examination. The examination paper will consist of two sections, and students will be required to answer six questions from Section A, and two questions from Section B. Each section will carry equal weight.