Course summary

One of three specialist Masters in Economics programmes available at Durham, the MSc in Behavioural Economics examines how elements of behavioural psychology can be applied to economics to understand how people make economic decisions and how these decisions may differ from those made from rational choices. As one of the fastest growing areas in economics, behavioural economics provides insight to inform business and public policy alike. You will also gain an understanding of experimental methods in economics through classroom experiments. The programme consists of a set of core and elective (optional) modules, culminating in a research-based dissertation. Core learning covers advanced macroeconomics and microeconomics alongside behavioural and experimental economics. The programme offers flexibility through its wide choice of elective modules in topics such as Development Economics, Game Theory and Time-Series Analysis among others. The dissertation then enables you to develop your research skills, through an in-depth investigation at an advanced level of a topic relevant to your degree. The dissertation also includes the option to conduct research abroad at a partner university. You will be taught at Durham University Business School, which is one of an elite group of institutions to be accredited by three major business education accreditation bodies, namely: the Association to Advance Collegiate Schools of Business (AACSB), the Association of MBAs (AMBA) and the European Quality Improvement System (EQUIS). As an economics student you will be part of an academic department with an international reputation for research and teaching excellence. Course structure Core modules You will study the following core modules: Advanced Macroeconomics develops your knowledge and analytical skills in advanced macroeconomics, covering topics such as theories of growth, business cycles over time and money. Advanced Microeconomics enhances your knowledge and analytical skills in advanced microeconomic theory relating to consumers and producers as well as other areas including decision-making under risk and uncertainty, incentives and strategic behaviour, market equilibrium and welfare economics. Behavioural Economics provides the opportunity to develop a critical understanding of current theoretical and empirical research in the subject and builds the necessary knowledge and skills to critically review a wide range of behavioural patterns that influence investment decisions, and the consequences of those behaviours for the financial marketplace. Experimental Economics enables you to test behavioural theories using methods from experimental economics. This module is designed to combine the behavioural approach in economics with active classroom experiments. These experiments illustrate simple economic situations, such as markets or auctions, and are used to highlight several economic ideas. You will critically review studies of economic behaviour in markets, bargaining, auctions, game theory, and public choice and discuss key aspects of individual behaviour in isolation, in particular choice under uncertainty and choice over time. Econometrics Analysis provides some of the econometrics skills necessary to pursue empirical research in economics and/or finance and also provides a basis for understanding more advanced econometric techniques to be taught in the second term of the course. Dissertation