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Programme & Unit Catalogues

ES50074: Financial economics

[Page last updated: 02 August 2022]

Academic Year: 2022/23
Owning Department/School: Department of Economics
Credits: 6 [equivalent to 12 CATS credits]
Notional Study Hours: 120
Level: Masters UG & PG (FHEQ level 7)
Semester 1
Assessment Summary: CW 30%, EX 70%
Assessment Detail:
  • Coursework (CW 30%)
  • Exam (EX 70%)
Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Learning Outcomes: On successful completion of the unit students will have acquired comprehensive understanding of the roles of the capital markets, pricing assets in speculative markets, the importance of market imperfections, excessive volatility. The students are expected to demonstrate subject-specific technical skills in asset valuation under different market environments and ability to conduct simple empirical investigations.

Aims: To equip students with the capacity to critically evaluate the fundamental concepts in modern financial economics.
To develop a range of appropriate quantitative skills, such as dynamic methods and optimising asset pricing models.
To enable students to develop the ability to apply analytical and statistical techniques to market data and critically evaluate the results.

* Use of optimization techniques in the context of financial economics. (F/T)
* Understanding the concept of risk and the attitude of economic agents towards it. (F/T)
* Use of IT for data collection, use of the appropriate software to conduct small scale empirical research (F/T).

Content: This unit provides knowledge of financial markets in a macro- and microeconomic context. Students learn the relevant processes of financial markets in underlying and derivative markets with regard to price and expectations formation. They gain an analytical insight into the effect macroeconomic variables have on the financial markets. The unit aims to closely combine theoretical knowledge with empirical evidence.

Programme availability:

ES50074 is a Designated Essential Unit on the following programmes:

Department of Economics

ES50074 is available for Auditing on the following programmes:

Department of Economics

ES50074 is Optional on the following programmes:

Department of Economics


  • This unit catalogue is applicable for the 2022/23 academic year only. Students continuing their studies into 2023/24 and beyond should not assume that this unit will be available in future years in the format displayed here for 2022/23.
  • Programmes and units are subject to change in accordance with normal University procedures.
  • Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.
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