Macroeconomics

This course introduces to the key building blocks of modern macroeconomic theory. The emphasis is on understanding different theoretical approaches and their relevance to macroeconomic policy by looking at both real and monetary aspects of economies. At the end of the course, students should be familiar with the following topics: Economic Growth, Unemployment, Business Cycle and Monetary Policy, and Consumption and Investment Theory. Tutorial classes will be used to solve problem sets and to introduce to the use of MATLAB and DYNARE to build, solve and simulate simple dynamic stochastic general equilibrium models.

Microeconomics

Microeconomic theory is based on a set of consistent assumptions that aim to provide systematic and realistic models of decision making for economic agents that allow us to analyze socio-economic situations such as market allocations, bargaining process or social choice problems. The course introduces the fundamental tools that are need for the analysis of these situations. We first focus on the decision problem of the consumer (consumer theory) with perfect information and then we turn to stochastic environments and introduce the most fundamental results of the theory of decision under risk and uncertainty. These tools lay the foundations for the analysis of the most fundamental market model, the perfectly competitive market model that is analyzed from a general equilibrium perspective. The course is closed with the presentation of the main results of welfare economics that are followed by the basics of the social choice theory.

Econometrics

This course introduces the main methods of econometric analysis and their application to economics. The main goal of the course is to teach the students how to become both producers and critical consumers of empirical research. This is achieved by focusing both on the theoretical properties and on the practical implementation of the techniques. The course starts introducing the classical linear regression model, assumptions about the explanatory variables and disturbances, properties of the least squares estimator and hypothesis tests. This first part of the course tries to provide all the students, those who have some training in undergraduate econometrics and those who have not, with a homogeneous basis. A second part of the course introduces the characteristics of non-spherical disturbances and the generalized least squares model, endogeneity issues and instrumental variables estimation, the generalized method of moments, the method of maximum-likelihood and simultaneous equations estimation. The course also aims to develop the students’ abilities to apply the methods to real data using the econometrics programme STATA.

Quantitative Methods

The subject Quantitative Methods in Economics is focused on Methods and Models of Economic Dynamics, has the purpose of qualifying the student to deal with Ordinary Differential Equations and Difference Equations as indispensable tools to analyze the behavior, over time, of any economic situation. Specific methods for analyzing the stability of the solutions in continuous and discrete time will be shown. Moreover, the study of systems of equations will lead to the analysis of simultaneous dynamical systems.

Seminar in Economics

The Seminar in Economics gathers various activities to be carried out by the student throughout the two semesters (attendance at seminars as well as their previous preparation and subsequent tasks).

Macroeconometrics

The purpose of this course is to introduce the students to the basics of contemporary time series analysis. The approach of the course is mostly applied, although the theoretical fundamentals will also be part of the teaching material and the classes. The students are expected to learn the main tools currently used by practitioners in Macroeconomics, as well as to interpret the results of research articles as they are published in scientific journals. The course starts with a revision of the univariate analysis of stationary data, followed by the main concepts of non-stationary data and the most frequently applied tests for the determination of the order of integration of the variables. The third lesson will start with the definition of cointegration and single equation methods for testing and estimation. Finally, the last lesson will be devoted to the multivariate analysis of time series with VAR models. In the laboratory sessions, the students will use econometrics software to apply to real data the concepts and methods already studied in class. We will choose mostly open-source software in our sessions, such as R and GRETL, although we cannot discard using other programs if they are more suitable for a particular topic or test.

Topics in International Macroeconomics

The objective of the subject is the analysis of unemployment and dynamics in the labor market, real effects of monetary policy, classic models of monetary economy, models with nominal rigidities, monetary policy, interest rate rules, optimal policies, commitment vs. discretion, as well as the interaction between fiscal and monetary policies.

Agent-based Economics

Agent-based modeling addresses, from bottom to top, questions such as the emergence of aggregate statistical regularities, distribution properties, economic interaction and coordination, complex systems, computational experiments, Monte Carlo simulations, asymmetric information between agents, imperfect competition and coordination failures in economic situations out of equilibrium.

Experimental Economics

This subject is about applying the Theory of decision and games in advanced economic analysis, knowing the most important experimental findings made in experimental economics, designing questionnaires about economic problems as well as laboratory experiments and the use of economic incentives to elicit preferences.

Behavioural Economics

The subject studies a series of basic concepts of behavioral economics necessary for the understanding of other subjects. Up to four general issues (negotiation, coordination, public economy and market) in which economic behavior models are developed in depth are analyzed.

Big Data in Economics

This course is about introducing the student to the management and understanding of the potential of Big Data information for the analysis of issues of economic interest. It is, therefore, to familiarize the student with data sets or combinations of data sets whose size (volume), complexity (variability) and speed of growth (speed) hinder their capture, management, processing or analysis using conventional tools. This course will show to students the great possibilities that the use of this type of data provides for the study of topics in economics.

Microeconometrics

The aim of this subject is to provide economists sufficient knowledge of the most updated topics in microeconometrics so that they can choose the most appropriate estimators as well as exploit both the databases and economic models. The program is designed to respond to the needs of researchers and practitioners when working with real data, where an important dimension in the unit of analysis is the individual. This requires the use of micro data and the use of advanced techniques in (micro) econometrics. The practical content of this course has two objectives: on the one hand, the knowledge and management of the statistic-econometric package STATA; on the other hand, and in each of the issues, being able to solve practical cases that require the use of the various estimators explained in the theoretical part of the program. The program covers panel data, discrete choice, censoring, count data, duration analysis and other advanced topics.

International Trade

The purpose of the International Trade course is the study of the theoretical models that help us to understand why countries trade, and in each case, what is the source of gain from trade. This course explores the first "classical" theories of free trade with constant returns to scale. The following addresses the "New Trade Theory" which explores the role of economies of scale in trade. Finally, a presentation of the theoretical models developed in the framework of the "New-New Trade Theory," which examines the role of firm heterogeneity and the existence of sunk costs in trade is done. Although most of the topics addressed why countries exchange goods and what is the source of gains from trade, we also briefly discuss the international movement of factors (migration flows and foreign direct investment) and the phenomenon of "outsourcing " International (or international fragmentation of value chains).

Monetary and Financial Integration

The aim of this course is to equip students with a critical understanding of the economic issues in the financial and monetary integration debate, with a special emphasis in the euro area. The course provides a blend of descriptive information, theory and empirical analysis. The emphasis is on economic issues but these issues are studied in their political and social context. Theoretical analysis forms an essential part of the course and requires knowledge of intermediate micro- and macroeconomics. Particular attention is devoted to policy areas in which EU co-ordination has progressed furthest: monetary and fiscal integration and the internal market. The aim of the course is to provide the theoretical underpinnings to analyze the economic effects of monetary integration processes, using as a case study the European experience. It is a course comprising theory and practice.

Transport Economics

The main objective of Transport Economics is the study of the transport sector from an economic point of view. With this purpose, different instruments, based on theoretical analysis as well as on other types of empirical or applied techniques, will be analyzed. In particular, the usual topics of transport economics will be studied: production and costs in transport, demand analysis, pricing and externalities, investment decisions in infrastructures and economic regulation in transport markets. The transport economics is a field relatively young in the economic analysis that in recent years has undergone a remarkable development. Although in the first years, transport economics was mainly concerned with purely empirical or applied issues, the works that study the transport from a theoretical point of view have also grown in a very significant way.

Industrial Economics

This course provides the student with a basic understanding of the building blocks of Industrial Organization models, which are the modelling tools commonly used in the modern economic analysis of markets. Specifically, the course focuses on the study of oligopoly markets, leaving some time to deal with some selected topics such as product differentiation, productivity measurement, innovation, internationalization and firm performance.

Game Theory and Economics of Information

Game theory is the study of multiperson decision problems where there is a strategic conflict. That is, where participants are aware that the result or payoff they obtain depends not only on her own decision but also on the decisions of other participants. Society, and economy in particular, is plenty of these strategic interactions. The first part of the course covers the equilibria of strategic games with complete (review) and incomplete information, sequential games with complete information, negotiation and repeated games. Sequential games with incomplete information close the first part of the course. In the second part, the course studies canonical models of adverse selection and moral hazard. More specifically, we will look at how to design optimal contracts in the presence of asymmetric information. Contract theory is an important branch of applied microeconomic theory, and its tools are increasingly being used in labor and development economics, as well as in industrial organization. Thus, the course is of potential interest to those outside of pure microeconomic theory.

Environmental Economics

This subject studies the relationships between economy and environment, competitive license markets and with a dominant company and environmental regulation with asymmetric information and uncertainty. It also analyzes international environmental problems and international environmental agreements.

Master Dissertation

The Master dissertation serves as an additional complement to the courses of the Master’s Program. It is a research project conducted by students, who face research tools and techniques for the first time in their lives. Given the wide research profile of the Master’ teaching staff, students can choose between an original theoretical model, an empirical analysis, or the design and execution of an experiment that validates a theoretical result, among other possibilities. A member of the teaching staff will supervise the research project.