Statutes and Ordinances of the University of Cambridge
CHAPTER IV
pp. 294–300
PRELIMINARY EXAMINATIONS AND TRIPOS EXAMINATIONS

The provisions contained in this Chapter are Regulations of the General Board

In this section

TRIPOS EXAMINATIONS

ECONOMICS TRIPOS

Amended by Notice (Reporter, 2015–16, p. 503)

1. The Economics Tripos shall consist of three Parts: Part I, Part IIa, and Part IIb. 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 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:

  1. (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;33
  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.

A student who, under arrangements approved by the Faculty Board, has spent not less than three terms studying at the Massachusetts Institute of Technology and has been certified by the President of the Institute after consultation with the Chair of Examiners for Part IIa of the Economics Tripos to have studied diligently during that period, shall be deemed thereby to have obtained honours in that Part of the Tripos. A list containing the names of persons so qualified shall be certified by the Chair of the Faculty Board and published in the Reporter.

6. A student who has obtained honours in any other Honours Examination other than Part I of the Economics Tripos or has been deemed to have obtained Honours in Part IIa of the Economics Tripos under Regulation 5 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.33

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 social aspects of economics

 Paper 5.

British economic history

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.

International trade and economic development

 Paper 5.

either

(a)

The modern state and its alternatives (Paper POL1 of Part I of the Human, Social, and Political Sciences Tripos),

or

(b)

Modern societies I: introduction to sociology (Paper SOC1 of Part I of the Human, Social, and Political Sciences Tripos),

or

(c)

International conflict, order, and justice (Paper POL2 of Part I of the Human, Social, and Political Sciences Tripos).

 Paper 6.

Mathematics and statistics for economists

 Paper 7.

Labour

 Paper 8.

History and philosophy of economics

Each paper shall be set for three hours 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.

17. A candidate for Part IIa shall offer

  1. (a)Papers 1, 2, and 3
  2. 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 follows:

 Papers 1.

Microeconomic principles and problems

 Papers 2.

Macroeconomic principles and problems

 Paper  3.

A subject in economics35

 Paper  4.

Economic theory and analysis

 Paper  5.

Political economics

 Paper  6.

Banking and finance

 Paper  7.

Public economics

 Paper  8.

The economics of developing countries

 Paper  9.

Industry

 Paper 10.

Theory and practice of econometrics II

 Paper 11.

Time series and financial econometrics35

 Paper 12.

A subject in economics35

 Paper 13.

A subject in economics35

 Paper 14.

A subject in economic history

 Paper 15.

A subject in economic history

 Paper 16.

A subject in sociology VII (Paper SOC12 of the Human, 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.

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

  1. (a)Papers 1 and 2
  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;
  3. and(c)a dissertation, submitted in accordance with the provisions of Regulation 25, within the field of any one of Papers 1–4, 6–15, or within a field from among other fields which the Faculty Board shall specify from time to time.

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 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,36 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

  1. (i)two copies of a brief synopsis of the contents of the dissertation, and
  2. (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.

26. The Examiners shall have power to examine a candidate viva voce on the subject of her or his project submitted under Regulations 14 or 16, or on her or his dissertation submitted under Regulation 25.

SUPPLEMENTARY REGULATIONS

Part I

Amended by Notices (Reporter, 2015–16, pp. 314 and 503)

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: decision theory; 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 failure and the role of the state; welfare economics.

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 four sections.

Candidates are required to answer questions from all four sections of the written paper: the marks attached to each section, and the number of questions to be answered, will be shown on the question paper. Sections A and B of the paper will comprise a number of questions on mathematical techniques, and the application of these techniques to simple problems in economic theory. Sections C and D of the paper will deal with the manner in which statistics contributes to the study of economic problems and to the discussion of issues of public policy. The questions in these sections will test candidates’ ability to perform relatively simple statistical derivations, to analyse problems in applied economics, and their knowledge of statistical sources. Sections A and C will each contain four short questions: students will be required to answer all questions in these sections. Sections B and D will each contain two long questions of which students will be required to answer one. The paper will be of three hours’ duration.

Paper 4. Political and social aspects of economics

This paper considers the influence of political and social factors on economic affairs. It examines how economics and politics are ineluctably intertwined at a theoretical level; of how a full understanding of economics is only possible with an understanding of politics. The role of political and social institutions and their interrelationship with economics is considered. The paper 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 also examines the relationship between politics and economics in the processes of integration in the European Union.

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

Amended by Notice (Reporter, 2015–16, p. 503)

Paper 1. Microeconomic principles

The paper covers the following topics in economic theory: consumer theory; producer theory; general equilibrium theory; welfare economics; introduction to decision-making under uncertainty; asymmetric information; and contract theory.

Paper 2. Macroeconomic principles

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.

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 3 will consist of two components, as follows:

  1. (a)A three-hour written paper which tests candidates’ understanding of the logic of the methods covered in the course.
  2. (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 one topic, involving the application of data sources and statistical methods to economic problems.

The written paper will carry 60% of the weight for the examination as a whole, and the project 40%.

Paper 4. International trade and economic development

The paper provides a theoretical and practical introduction to two major topics that are inter-related: international trade and economic development. The course introduces concepts and theories in development economics and provides a broad overview of the key models and issues in development economics. It uses tools from both macro- and microeconomics to examine topics ranging from the political economy of development, economic growth and measurement of well-being, imperfections of markets, and the role of institutions. The course also covers the theoretical models of international trade, global production structures, and associated policies. It constitutes a self-contained one-year course for those interested in these fields but not planning to pursue them further.

Paper 5.
  1. either(a)The modern state and its alternatives (Paper POL1 of Part I of the Human, Social, and Political Sciences Tripos)
  2. or(b)Modern societies I: introduction to sociology (Paper SOC1 of Part I of the Human, Social, and Political Sciences Tripos)
  3. or(c)International conflict, order, and justice (Paper POL2 of Part I of the Human, Social, and Political Sciences Tripos)
Paper 6. Mathematics and statistics for economists

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 recommended for those who plan to take Paper 6 (Banking and finance) of Part IIb of the Economics Tripos.

Paper 7. Labour

The paper has the following subject matter: the distribution of wages and the determination of employment by household supply and employer demand for labour, the role of market frictions in shaping the equilibrium outcome, human capital and education, migration, asymmetric information and screening, theories of compensating differentials, performance pay, labour mobility, and discrimination. Candidates will be expected to know the main empirical data sources on the labour market and they should be familiar with the modern approaches to the analysis of such data. Students will be introduced to empirical work on these issues in country-specific contexts and will learn about country-specific peculiarities among advanced economies regarding, for example, wage dispersion, minimum wages, CEO compensation, gender wage differentials, social values, discrimination, pension systems, unemployment insurance, and employment protection. They should be able to draw selectively on contributions from sociology and political science.

Paper 8. History and philosophy of economics

The paper is intended to help the students fully appreciate the strengths and weaknesses of the economic theories contained in other courses in the Tripos. It aims to do so by teaching them: (i) the major theoretical innovations and debates that have marked the evolution of economics (history of economics); and (ii) the key issues involved in the assessment of different methods of economic investigation (philosophy of economics).

Part IIb

Amended by Notices (Reporter, 2015–16, pp. 503 and 758)

Paper 1. Microeconomic principles and problems and
Paper 2. Macroeconomic 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. A subject in economics37
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 including mathematics.

Paper 5. Political economics

Economic policy varies enormously across time and space. The question that political economics aims at answering is why. It starts from the premise that public policy decisions are shaped by interactions between politicians, voters, and bureaucrats operating within particular institutional structures and under particular economic constraints. The paper engages with political decision-making in democracies (through voting, bargaining, and lobbying); with how democratic and other important institutions emerge; and with how conflict in some contexts replaces orderly political exchange. The paper discusses these themes using simple rational choice models combined with systematic empirical evidence from econometric investigations, field experiments, and case studies from economic and political history.

Paper 6. Banking and finance

The paper provides an introduction to banking, financial asset valuation, and its application to corporate decision-making. We will cover current research on the evolving nature of financial intermediation, and issues in the design of financial regulation.

Paper 7. Public economics

The paper studies the following subject matter: optimal taxation, externalities and environmental policy; social security; political decision-making and political economics; public expenditure and tax systems in practice. The paper will require knowledge of the relevant theories supporting empirical evidence and institutions.

Paper 8. The economics of developing countries

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.

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 develops and extends the econometric techniques beyond those covered in Paper 3 in Part IIa. It will involve discussion of the empirical application of these techniques to economic problems using examples from the econometric literature. Technical derivations will be kept to a minimum. The examination for this paper consists of a written paper of three hours’ duration.

Paper 11. Time series and financial econometrics38

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.

Paper 12. A subject in economics38
Paper 13. A subject in economics38
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 business cycles, the causes and effects of financial crises, the transfer problem, international monetary arrangements, the growth of protection and the development of trading blocs, the agrarian depression, and the comparative experience of different countries with regard to unemployment. The main countries considered will be Britain, France, Japan, Germany, and the USA, but the paper will not be exclusively confined to these.

Paper 15. A subject in economic history
Paper 16. A subject in sociology VII (Paper SOC12 of the Human, 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 shall 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

  1. (a)A subject in politics and international relations II (Paper POL13 of the Human, Social, and Political Sciences Tripos in any year that the subject of that paper is ‘The politics of Europe’);
  2. (b)A subject in sociology IV (Paper SOC9 of the Human, Social, and Political Sciences Tripos in any year that the subject of that paper is ‘The political economy of capitalism’);
  3. (c)The family (Paper PBS 11 of the Psychological and Behavioural Sciences Tripos).

Footnotes

  1. 33. See also the regulations for Affiliated Students (p. 166).d e
  2. 35. This paper is suspended until further notice.a b c d
  3. 36. 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.a
  4. 37. This paper is suspended until further notice.a
  5. 38. This paper is suspended until further notice.a b c