Module 1: Tools and methods for economists, 7.5ECTS The main objective of this module is to give the student a fundamental understanding of methods for economists, theoretical as well as practical. Ethical aspects in research are included.
The methods that are presented during the module may be divided into two main categories: mathematics and econometrics. During the first part of the module we discuss notions and methods in mathematics that are useful for theoretical work within economics as well as econometrics. Examples of such notions and methods could be functional forms, systems of equations, logarithms, derivatives and optimization. Then, the module transitions into discussing econometrics where the focus is notions, interpretation and practical usage. The econometric tools under discussion are also motivated theoretically.
The main focus is on the classical regression model estimated by OLS and varieties and extensions of this model. During the model we work with actual data material and presentation of results. In conjunction with these practical exercises we also discuss how we can deal with endogeneity problems such as simultaneity, measurement error and omitted variables by the use of instrumental variables, panel data and natural experiments.
Module 2: Industrial Economics, 7.5 ECTS The objective of the module is to give the students a good understanding of how firms and markets are organized and how firms and markets interact. The module introduces less simplistic and more realistic models of firms and markets than used on the introductory courses and gives the students theoretical and emprical knowledge regarding the consequences of monopoly, oligopoly, price discrimination, produc differentiation, cooperation, cartels, entry and exit and strategic behaviour.
The starting point for the analysis is the existence of frictions as information asymmetries, transaction costs, menu costs and entry barriers. The module discusses how the firms are organized and how firms compete given these kinds of frictions.
The econometric part of the course is based on the methods from the previous module with relevant application for industrial economics.