EC220: Intermediate Economic Theory

Module code: EC220

Module provider: Economics; School of Philosophy, Politics and Economics

Credits: 20

Level: Level 2 (Intermediate)

When you'll be taught: Semester 2

Module convenor: Dr Carolyn Molesworth-St Aubyn, email: c.molesworth-staubyn@reading.ac.uk

Pre-requisite module(s):

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2024/5

Available to visiting students: Yes

Talis reading list: Yes

Last updated: 23 May 2024

Overview

Module aims and purpose

This module builds upon the previous microeconomic, macroeconomic, and maths modules studied. It is intended to introduce students to the basic concepts of economic modelling by applying previously learned economics in a more formal, structured way. In particular, students will learn what constitutes a formal model, how micro-foundations form the basis of modern macroeconomic models, and how to use formal mathematical models to answer economic questions and analyse real world policies. The module enables students to progress to advanced microeconomics and advance macroeconomics.

Module learning outcomes

By the end of the module, it is expected that students will be able to:

1. Understand the basic issues underlying the creation of a mathematically based economic models.
2. Understand how basic microeconomic theories provide the underpinning for modern economics and how the concept of equilibrium (whether in steady state or dynamic) embodies both the mathematical and economic “solution” to the question being asked.
3. Apply simple economic models to real world situations and policy analysis.
4. Coherently link mathematical models and the real world.

Module content

Basic topics include: defining and understanding the basic components of an economic model, understanding the role of utility and profit maximization in a well-defined economic model, understanding how all aspects of an economy are expressed precisely and mathematically, understanding the solution concept of equilibria, and using simple models to answer questions and analyse policies. Additional topics will build on topics taught in earlier microeconomics and macroeconomics modules.

Structure

Teaching and learning methods

Detailed guidance on the topics covered will be provided in the lectures, together with examples, exercises and solutions to facilitate understanding of key concepts. Students may be required to do exercises corresponding to each topic, to read journal articles, and to undertake research using the library, internet, etc.

Study hours

At least 30 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

Students need to achieve an overall module mark of 40% to pass this module.

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Reassessment

Additional costs