Economics: Intermediate

The intermediate courses can be applied for in packages of 30 credits or each course separately if you are only taking a single course. The NEK20 course package consists of four courses:

Micro theory, 7.5 hp (NEK203)
In this course you will deepen your knowledge of microeconomics and learn more about the theory of consumer and business decision-making. Individual markets are then linked together in the theory of general equilibrium, which is how we can look at the economy as a whole. Deviations from the perfect competition model in the form of, for example, competitive constraints and externalities are studied. The theories are formulated in mathematical form to a greater extent than in the basic course. A course in microeconomics is a good gateway to more specialised courses, such as financial economics, development economics or environmental economics, which in turn can lead to essay writing using theories and statistical methods.

Macroeconomics, 7.5 hp (NEK204)
It deepens and extends the macroeconomic knowledge presented in the basic course. You will study short- and medium-term stabilisation policies, and the important issue of long-term growth. Key macroeconomic phenomena such as budget deficits and public debt, consumption and investment, national accounts, unemployment and inflation are addressed independently and in relation to the basic models.

Econometrics, 7.5hp (NEK206)
This course discusses the use of data to establish and quantify causal relationships between economic variables. We consider cross-sectional, as well as panel and time series data. The students learn to distinguish between causal relationships and correlations. An empirical analysis of a causal relationship requires a source of correlations. An empirical analysis of a causal relationship requires a source of exogenous variation.
The course introduces two econometric methods (ordinary least squares and instrumental variable regression) that exploit different sources of exogenous variation.

The students learn about the role of control variables, measurement error and equilibrium conditions (“simultaneous equations”) in assessing the plausibility of an exogeneity assumption. They learn how to use the framework of statistical testing to account for the fact that a dataset does not contain 1) data on all relevant economic units, 2) measurements of all determinants of unit behavior. In addition to learning about the theoretical foundations of econometric methods, the students will learn how to apply them to real economic data. To this end, they will learn how to process and analyze economic data using a statistical software.

Empirical Economics in Practice, 7.5hp  (NEK205)
In this course students will learn to in practice use economic theory and empirical methods to analyse different economic problems. This is primarily done by applying the material from previous courses at both the introductory and intermediate level. The idea is that one should get an insight into how economists actually work with both models and empirical methods to understand and analyse a complex reality.

The course contains both mico- and macro economic questions. The micro economic questions relate to how individual actors, such as individuals and firms, for example value different good or how they behave under different market conditions. Questions that could be discussed range from demand for local environmental quality, or what pricing strategy a firm should use. The macro economic questions concern how factor at an aggregate or societal level relate to each other.