Economics

Economics

Candidates for the Graduate Certificate in Economics must complete 24 credit points of foundation units of study.
Candidates for the Graduate Diploma in Economics must complete 48 credit points, including a minimum of 24 credit points of foundation units of study and a minimum of 24 credit points of core units of study.
Candidates for the Master of Economics must complete 96 credit points, including 24 credit points of foundational units of study, at least another 24 credit points of core units of study, a maximum of 42 credit points of elective units of study, at least one specialisation and a minimum of 6 credit points of capstone units of study.

Foundation Units of Study

ECMT5001 Principles of Econometrics

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr lecture/week, 1x1hr non-compulsory online tutorial/week Assessment: Online quizzes equivalent to 500wd (10%), 1xGroup assignment equivalent to 1000wd (15%), 1x1hr Mid-semester test (20%), 1x2hr Final exam (55%), Mode of delivery: Normal (lecture/lab/tutorial) day
The unit develops the basic principles of data description and analysis, the idea of using the concept of probability to model data generation, and the statistical concepts of estimation and statistical inference, including hypothesis testing. It then develops these concepts and techniques in the context of the linear regression model to show how econometric models can be used to analyse data in a wide range of potential areas of application in economics, business and the social sciences. The unit combines theory and application. The emphasis is upon the interpretation of econometric estimation results and requires software for hands-on experience.
ECON5001 Microeconomic Theory

Credit points: 6 Session: Intensive February,Semester 1,Semester 2 Classes: 1x3hr lecture/week, 1x1hr non-compulsory online tutorial/week Prohibitions: ECON5040 Assessment: Online quizzes equivalent to 1000wd (10%), 1x1.5hr Mid-semester test (35%), 1x2hr Final exam (55%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit presumes no prior exposure to economics and aims, by the end of the unit, to bring a proficiency equivalent to that of students with an intermediate level microeconomics unit in an Honours degree program. Many economic principles developed in this unit are routinely used in several other units in the program. Microeconomics studies how economic agents make choices in a variety of environments. The unit covers theory and applications of the principles of consumer choice, of firm behaviour, and of strategic interaction among economic agents. Equipped with these theories of decision making, students can address a range of interesting and important questions. Examples are: What market strategy should a firm adopt with its competitors? How might one create a market to deal with externalities such as pollution? What are the implications of different kinds of taxes? What compensation scheme will provide the right incentives to work?
ECON5002 Macroeconomic Theory

Credit points: 6 Session: Intensive January,Semester 1,Semester 2 Classes: 1x3hr lecture/week, 1x1hr non-compulsory online tutorial/week Prohibitions: ECON5003 Assessment: Online quizzes equivalent to 1500wd (20%), 1x1hr Mid-semester test (30%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit presumes no prior exposure to economics and aims, by the end of the unit, to bring a proficiency equivalent to that of students with an intermediate level macroeconomics unit in an Honours degree program. Many economic principles developed in this unit are routinely used in several other units in the program. Macroeconomics studies aggregate economic behaviour. The unit covers theories of the engines of long-run economic growth, of unemployment, of money, inflation, the interest rate and the exchange rate, as well as consumption, saving and investment behaviour. The unit also studies a number of applications of the theory and addresses contemporary macroeconomic problems and policy.
ECON5005 Quantitative Tools for Economics

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr seminar/week, 1x1hr non-compulsory online tutorial/week Assessment: 5x200wd Online Quizzes (15%), 1x1.5hr Mid-semester Test (35%), 1x2hr Final Exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit of study aims to enhance mathematical ability to provide a skill set that enables students to thrive in their study of economics. Themes such as algebra, the plotting of points, lines, and functions in two and three dimensional space, differential calculus and simultaneous equations are the basis on which the skills are taught.

Core units of study

ECMT6002 Econometric Applications

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr lecture/week, 1x1hr non-compulsory online tutorial/week Prerequisites: ECMT5001 Prohibitions: ECMT5002 Assessment: 1x1500wd equivalent Group project (25%), 1x1hr Mid-semester test (25%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit illustrates how econometric methods can be applied to economic data to solve problems that arise in economics and business. Econometric theory provides the techniques needed to quantify the strength and form of relationships between variables. Applied econometrics is concerned with the strategies that need to be employed to use these techniques effectively; to determine which model to specify and whether the data are appropriate. Guidelines for undertaking applied work are discussed. Case studies drawn from economics, marketing, finance, and accounting are also discussed. The unit includes a major econometric modelling project.
ECON5004 Communication in Economics

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr seminar/week, 1x1hr non-compulsory online tutorial/week Assessment: 2x1500wd assignments (35% each), 1x10min (1500wd equivalent) oral presentation (30%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit of study aims to enhance oral and written communication skills and improve understanding of how to engage with academic economics. A series of tasks will consider economics academic texts in context and require learners to understand, analyse and produce appropriate spoken and written texts. Concepts in critical analysis will provide the basis for improved persuasive communication, including the difference between convention, fact, opinion and preference; deductive and inductive proof; validity and truth; evidence; and the ethics of persuasion.
ECON6001 Microeconomics Analysis 1

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr lecture/week, 1x1hr non-compulsory online tutorial/week Prerequisites: ECON5001 or ECON5040 Assessment: 1x1.5hr Mid-semester test (30%), 1x2hr Final exam (50%), 1xTake-home Mid-semester task equivalent to 1000wd (20%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit is an introduction to modern microeconomic theory and as such has three purposes: (i) to introduce students to the major ideas of modern microeconomics and to develop their understanding of these ideas; (ii) to develop students' facility with analytic economic models; and (iii) to develop students' ability to solve economic problems with the ideas, techniques, and models available to professional economists. Topics covered include (i) individual decision-making by economic agents, (ii) the determination of prices and resource allocation in competitive general equilibrium models, (iii) strategic behaviour by firms under imperfect competition, and (iv) contracting with imperfect information.
ECON6002 Macroeconomics Analysis 1

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr lecture/week, 1x1hr non-compulsory online tutorial/week Prerequisites: ECON5002 Assessment: Problem Sets equivalent to 1000wd (10%), 1x1.5hr Mid-semester test (30%), 1x2hr Final exam (60%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit is aimed at providing students with a sound and comprehensive knowledge of modern macroeconomic theory, an ability to formulate and solve problems analytically, and a general appreciation of how policymakers can use the analysis in practice. Topics covered include (i) micro-foundations of macroeconomics, focusing on consumption, investment, money demand, and credit rationing; (ii) equilibrium macroeconomics, focusing on the conventional prototype as well as on recent stochastic macroeconomic models; and (iii) dis-equilibrium macroeconomics, concepts, issues, and models.

Elective Units of Study

ECMT6003 Applied Business Forecasting

Credit points: 6 Session: Semester 2 Classes: 1x3hr lecture/week Prerequisites: ECMT6002 Assessment: 1x1500wd equivalent Take-home assignment (30%), 1x1hr Mid-semester test (20%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit aims to provide an introduction to the practice of forecasting in business. Forecasting requires both practical experience in model building and some statistical theory. To blend the theory and practice, many business forecasting examples are discussed. Excel is used to do useful preliminary calculations and plotting. At the end of this unit, students should be able to understand the major techniques of forecasting and be able to intelligently forecast actual business time series using Excel and its extensions. Topics covered include: the aims of forecasting and relation to time series analysis; types of time series; plotting and charting time series; practical examples of forecasting and forecasting issues; growth curve methods; least squares (what you need to know for forecasting); decomposition of time series; elementary exponential smoothing with Excel; serial correlation (and Durbin Watson statistic); applied ARIMA modelling and identifying seasonality and "hidden" periodicities.
ECMT6006 Applied Financial Econometrics

Credit points: 6 Session: Semester 1 Classes: 1x3hr lecture/week Prerequisites: ECMT6002 Assessment: Take-home assignments equivalent to 1500wds (30%), 1x1hr Mid-semester test (20%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit provides an introduction to some of the widely used econometric models designed for the analysis of financial data, and the procedures used to estimate them. Special emphasis is placed upon empirical work and applied analysis of real market data. The unit deals with topics such as: the statistical nature of financial data; the specification, estimation and testing of assets pricing models; the analysis of high frequency financial data; and the modelling of volatility in financial returns. Throughout the unit, students are encouraged (especially in assignments) to familiarise themselves with financial data and learn how to apply the models to these data.
ECMT6007 Analysis of Panel Data

Credit points: 6 Session: Semester 1 Classes: 1x3hr lecture/week Prerequisites: ECMT6002 Assessment: 1xGroup assignment equivalent to 1000wds (20%), 1x1.5hr Mid-semester test (30%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
Recently, empirical research in economics, finance, marketing and accounting has been enriched by the increasing availability of new sources of data, known as panel data. A 'panel' refers to the pooling of observations on a cross section of households, countries, firms etc. over several time periods. Panel data sets possess several major advantages over conventional cross-sectional or time series data sets. This unit aims to offer a comprehensive treatment of the analysis of panel data, which will allow students to deal in a pragmatic way with fundamental issues, such as controlling for individual heterogeneity, reducing collinearity among regressors, addressing statistical hypotheses and identifying effects that are simply not detectable in pure cross-section or time series data.
ECON5006 Economics of Law and Public Policy

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Assessment: in class participation (15%), 1x10 min presentation (15%), 1x1500wd policy evaluation report (30%), 1x2hr final exam (40%) Mode of delivery: Normal (lecture/lab/tutorial) evening
This unit of study introduces tools to study the impact of laws and public policy on individual behaviours. We will critically evaluate empirical research produced by economists, sociologists, criminologists, and legal scholars. Topics will focus on criminal justice policy but will also cover other areas of law such as labour and social policy.
ECON5007 The Economics of Financial Markets

Credit points: 6 Session: Semester 2 Classes: 1x3hr lecture/week Prerequisites: ECON5001 or ECON5040 Assessment: 1x1.5hr mid-semester exam (30%), 1x1000wd assignment (20%), 1x2hr final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
Financial markets play a fundamental role in a modern economy. In this unit of study we analyse how financial markets function, with a particular focus on: the factors underlying demand and supply; risk and uncertainty; incomplete contracts and renegotiation; and asymmetric information and its implications. In doing so, we identify the key features of markets for financial assets. The unit also examines the development of financial institutions and current issues in financial markets.
ECON5008 Behavioural Economics

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: (ECON5001 or ECON5040) and (ECMT5001 or QBUS5001) Assessment: 1x2500wd Assignment (50%), 1x10mins In class presentation (20%), 1x1.5hr Mid semester test (30%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit builds on prior studies of microeconomics by introducing key concepts in Behavioural Economics. The implications of these departures from neoclassical economics will be explored for a range of topics, which may include financial decision-making, wage and incentive contracts, public policy, and charitable giving.
ECON5026 Strategic Business Relationships

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Assessment: 1x1500wd assignment (25%); 1x1hr mid-semester test (25%); 1x2hr final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
A firm's success depends on both its internal and external strategic relationships. This unit of study analyses how a firm can manage these relationships. We examine agency problems within the firm, outlining ways that firms try to mitigate these issues. Strategic relationships with input suppliers examined. We discuss how firms can establish a strong bargaining position in these relationships. The optimal boundaries of the firm are also analysed. We also study how a firm's product-market strategy affects its relationship with its rivals in the output market.
ECON6003 Mathematical Methods of Econ Analysis

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5001 and ECON5002 Assessment: Assignments equivalent to 1000wds(10%), 1x1.5hr Mid-semester test (30%), 1x2hr Final exam (60%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit is an introduction to mathematical economics. It has three purposes. First, to introduce students to the mathematical concepts and methods that are central to modern economics. Second, to give a set of economic applications of the mathematical methods. Third, to develop the students' ability to formulate logical arguments with the degree of precision and rigour demanded in modern economics. The mathematical topics covered include introductory analysis and topology, convex analysis, linear algebra, calculus of functions of several variables, optimisation, and introduction to dynamic programming and dynamical systems. The particular economic applications presented may vary from year to year, but usually include demand theory, production theory, and growth theory.
ECON6006 Market Structure and Strategic Behaviour

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON6001 or ECOF6080 Assessment: 1x750wd equivalent Mid-semester test (20%), 1x750wd equivalent Group presentation (20%), 1x1000wd Essay (20%), 1x2hr Final exam (40%), Mode of delivery: Normal (lecture/lab/tutorial) day
The purpose of this unit is to examine the nature of inter-firm rivalry in industries with market power. The unit begins with an exploration of the various ways in which firms can increase their market power by extracting more surplus from consumers by colluding with rivals or by excluding entrants. The topics for this part of the unit include price discrimination, product differentiation, advertising, research and development, predation and mergers. The unit also attempts to explain the various contractual and ownership linkages that exist between various stages of production. The latter involves a discussion of exclusive territories agreements, resale price maintenance, exclusive dealing, franchising and divisionalisation.
ECON6008 International Money and Finance

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5002 Assessment: 1x1hr Mid-semester test (30%), 1x1000wd Essay (15%), 1x2.5hr Final exam (55%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit covers the following topics: overview of the International Monetary System; foreign exchange markets, spot and future markets; swaps and options; arbitrage; covered and uncovered interest parity; exchange rate determination; forecasting exchange rate movements; exchange rate intervention; and the role of central banks.
ECON6009 Economics of the Labour Market

Credit points: 6 Session: Semester 1 Classes: 1x3hr seminar/week Assessment: take-home assignments equivalent to 1000wds 20%), 1x1.5hr mid-semester test (30%), 1x2hr final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
The purpose of this unit is to study some of the major issues in modern labour markets. Trends such as the increase in part-time work, the growing inequality in income and earnings, changes in the returns to education, and the simultaneous increase in hours of work and unemployment are addressed. The material consists of both empirical facts relating to the labour markets and the theories which are used to understand these facts. Part of the unit is devoted to the study of wage and employment contracts in the presence of uncertainty and other information problems. Imperfect information will have implications for the level of employment and unemployment, the structure of wages, and the use of particular forms of compensation such as bonuses, trust funds, and performance bonds.
ECON6010 Public Economics

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON6001 and ECON6002 Assessment: 1x2hr Final exam (50%), 1x1.5hr Mid-semester test (30%), Take-home assignments equivalent to 1000wds 20%), Mode of delivery: Normal (lecture/lab/tutorial) day
Recent innovations in public economics have overturned previously accepted policy rules. This unit focuses on the modern treatment of public policies relating to taxation, pricing of public sector outputs and public investment. Emphasis is placed on how different informational capabilities and jurisdictions of the government impact on the design of policy. The areas of application in taxation include the design of efficient and equitable consumption taxes, the structure of income taxation and the appropriate mix of income and consumption taxes. In response to market failures, pricing and investment rules for public enterprises, the provision and pricing of public goods, and policy responses to externalities and information problems are covered.
ECON6016 Trade and Development

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5001 or ECON5002 or ECON5040 Assessment: 1x1hr Mid-semester test (20%), 1x1500wd equivalent Seminar paper and presentation (20%), 1x2hr Final exam (60%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit is designed to highlight the relation between trade and development from an institutional and structural perspective, with appropriate modifications of received general economic principles, theories and policies. It closely studies the integration process of traditional segment of a developing society into its modern counterpart in countries selected from Asia, Africa, Latin America, the Caribbean, and the Pacific regions. It examines role of the state and international institutions (like the International Monetary Fund, World Bank, World Trade Organization), rationale for trade, planning and market mechanisms in developing economies, and also socio-cultural preconditions and economic requirements for a market economy. It focuses on a wide range of developmental problems and issues (such as foreign aid, debt, investment, technology transfer) from both national and international points of view.
ECON6018 Environmental Economics

Credit points: 6 Session: Semester 1 Classes: 1x3hr seminar/week Prerequisites: ECON5001 or ECON5040 Assessment: 1xSeminar paper and presentation equivalent to 1000wd (25%), 1x1.5hr Mid-semester test (25%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
In this unit of study emphasis is exclusively concerned with market failures that impact on the natural environment. Attention is given to why these market failures occur and what role there is for regulation and government policy. Topics covered include efficiency and markets, market failure, externalities (e.g. pollution), various methods of regulating pollution, and measuring the demand for environmental quality.
ECON6021 Financial Economics

Credit points: 6 Session: Semester 1 Classes: 1x3hr seminar/week Prerequisites: ECON6001 and ECON6002 Assessment: 1x2hr Mid-semester test (40%), 1x2.5hr Final exam (60%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit provides students with an understanding of the economic foundations of financial theory and the economic framework upon which that theory is based. Much of the work covered is an application of both microeconomic and macroeconomic theory to the special problems encountered in the study of the financial side of an economy. The relevance of these foundations is illustrated with empirical research using Australian and international data.
ECON6023 International Trade

Credit points: 6 Session: Semester 1 Classes: 1x3hr seminar/week Prerequisites: ECON6001 Assessment: 1x1500wd equivalent Written report (30%), 1x1hr Mid-semester test (20%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit develops the modern theory of international trade and commercial policy and examines some empirical applications. Topics covered include competitive trade theory; comparative advantage and theories of international trade patterns; the gains from trade; empirical evidence and methodology; imperfectly competitive trade theory and economies of scale, differentiated products, and technology; analysis of the effects of tariffs and trade quotas upon trade under competitive and imperfectly competitive market structures; the formation and design of regional trade agreements and the strategic behaviour of multinational enterprises. It will be suitable for those with an interest in international trade and business issues as well as those who may wish to pursue PhD research in these areas. It will be taught at a graduate level and so presumes knowledge of advanced undergraduate microeconomics.
ECON6024 Private Equity

Credit points: 6 Session: Semester 1 Classes: 1x3hr lecture/week Prerequisites: ECON5001 or ECON5040 Assessment: 2500wd written assignments (50%), 1x2hr final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
Private equity (PE) is crucial in developing new business ventures and promoting innovation. This unit investigates how PE firms operate, analysing the key strategic issues they face during the fundraising, investing and exit stages of the PE cycle. Topics covered include: the determinants and types of PE fundraising, the organisational structure of PE firms, the PE firm's investment decision, the PE firm-investee company relationship and the design of exit strategies. The role of PE in the broader economy is also discussed. Finally, we introduce some of the ethical issues PE firms face.
ECON6025 Strategic Decision Making

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON6001 or ECOF6080 Assessment: 1x1.5hr Mid semester test (40%), 1x2hr Final exam (50%), Tutorial assignments equivalent to 1000wds (10%), Mode of delivery: Normal (lecture/lab/tutorial) day
Decision makers face two types of uncertainty: uncertainty about the state of nature (how much oil is in an oilfield) and uncertainty about the strategic behaviour of other decision makers (how many oil wells they will drill). This unit of study focuses on strategic uncertainty and the uses decision makers can make of the concepts of game theory to guide their decisions. Game theory studies situations where a) agents have conflicts of interests and b) agents can take actions that directly affect their payoffs and the payoffs of others. A very broad range of applications from business and economics fit the above description and therefore can be studied by the methods of game theory. Applications include, firm pricing and output decisions, market entry and exit, hold-up, collusion, bargaining, auctions, and signalling.
ECON6029 Health Economics and Policy Evaluation

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: (ECON5001 or ECON5040) and ECMT5001 Assessment: 1x1500wd assignment (20%); 1x1hr mid-semester test (20%); 1x2hr final exam (60%) Mode of delivery: Normal (lecture/lab/tutorial) evening
In this unit, students will engage in discussing major health care issues and applying econometric tools to assess the (cost)-effectiveness of health care policy reforms. The following topics are likely to be covered: (1) international health care systems and finance, (2) determinants of the demand and supply of health care and behaviours, (3) inequalities in health and access to care, and (4) current policy reforms such as the introduction of provider incentives and co-payments. Each topic will be accompanied by an empirical application and replication assignment.
ECON6031 International Finance and Globalisation

Credit points: 6 Session: Intensive April Classes: 1x3hr lecture/week Prerequisites: ECON5001 and ECON5002 Assessment: 1x2500wd assignment (50%), 1x2hr exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit of study examines the interaction of globalisation and the governance of the international financial system. Insight will be drawn from recent developments in economic theory and empirical research and illustrated with an analysis of the 2008 Crisis and its aftermath.
ECON6101 Special Topics in Economics 1

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5001 and ECON5002 Assessment: 1x2hr exam (50%), 1x2500wd assignment (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
Note: Department permission required for enrolment
Note: Students must seek written permission from the School of Economics Postgraduate Coordinator to enrol in this unit.
Study of a special topic in postgraduate Economics. Topics will vary from semester to semester according to staff availability and the presence of visitors. If taught in both semesters, the topic in Semester 2 will be different to that in Semester 1.
ECON6102 Special Topics in Economics 2

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5001, ECON5002 Assessment: 1x2hr exam (50%), 1x2500wd assignment (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
Note: Department permission required for enrolment
Study of a special topic in postgraduate Economics. Topics will vary from semester to semester according to staff availability and the presence of visitors. If taught in both semesters, the topic in Semester 2 will be different to that in Semester 1.
FINC5001 Capital Markets and Corporate Finance

Credit points: 6 Session: Intensive January,Intensive July,Semester 1,Semester 2 Classes: 1x 3hr seminar per week Assessment: mid semester-test (20%), major assignment (25%), and final examination (55%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening, Block
This unit provides an introduction to basic concepts in corporate finance and capital markets. It is designed to equip students to undertake further studies in finance. After reviewing some very basic ideas in finance and financial mathematics, the unit provides an introduction to the valuation of equity and debt securities and companies. The unit then examines issues related to pricing in capital markets and ends with a discussion of theory and practice related to capital structure and dividend policy.
FINC6000 Quantitative Finance and Derivatives

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Prohibitions: FINC5002 Assumed knowledge: This unit requires students to have some background in calculus, matrices, statistics and probability. Assessment: assignment (20%), mid-semester exam (30%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
This unit provides students with an introduction to quantitative models and techniques in finance. Topics covered include basic stochastic calculus, probability measures and the role of numeraires, Black-Scholes and Hull-White models, and the theoretical and numerical techniques for valuing derivatives. There is a focus on both the intuitive and mathematical understanding of these topics, as well as their application to problems in quantitative finance.
FINC6001 Intermediate Corporate Finance

Credit points: 6 Session: Intensive January,Intensive July,Semester 1,Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester test (30%), major assignment (30%), final exam (40%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening, Block
This unit extends some of the fundamental concepts introduced in FINC5001 Capital Markets and Corporate Finance, and develops a rigorous framework for the analysis and understanding of key aspects of corporate financial decision making. Fundamental concepts in corporate finance are extended to more complex settings. The unit examines more advanced approaches to asset pricing and capital budgeting. New topics are covered in relation to derivative securities and real options applications in capital budgeting. The issues of the cost of capital, corporate capital structure, and corporate dividend policy, are extended to cover the interaction of corporate and personal taxation, agency problems, and information signalling.
FINC6005 Advanced Asset Pricing

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 or FINC5002 or FINC6000 Assessment: 2 x In class test (2x15%), assignment (20%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
Note: Only students with strong quantitative/mathematical skills should attempt this course
This unit covers the fundamentals of asset pricing and valuation, under equilibrium conditions and under no-arbitrage restrictions. It reviews the main themes in modern asset pricing, and introduce ideas of importance to the evolution of the discipline, and consequently of relevance to a practitioner's long term perspective. The unit emphasises quantitative methods, so students are required to have fairly strong mathematical skills. Nevertheless, the mathematical tools needed in the unit are adequately reviewed.
FINC6007 Financial Strategy

This unit of study is not available in 2019

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: individual assignment (20%), group assignment (30%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit explores value investment principles used in investment strategies. Both investment strategies and company strategies are analysed to examine how to translate a company's strategy into shareholders' profit. The unit also provides students with the skill set of analysing and interpreting financial reports, identifying good investment and avoiding financial scandals. Great investment practitioners' (Benjamin Graham, Warren E. Buffett and Charles Munger) works are studied in detail.
FINC6009 Portfolio Theory and its Applications

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 or FINC5002 or FINC6000 Assessment: mid semester exam (20%), individual assignment (15%), group assignment (15%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit covers several aspects of modern/post modern portfolio theory.An introduction to mathematical optimisation techniques in the presence of uncertainty is covered and results from modern portfolio theory to the Capital Asset Pricing Model derived. The unit also examines other popular models such as the Arbitrage Pricing Theory and Black-Litterman Model and concludes with some topical examples from industry. There is a degree of mathematical sophistication associated with this unit and consequently students should be comfortable with a mathematical approach. However, the required mathematical tools are covered in the unit.
FINC6010 Derivative Securities

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (25%), assignment (25%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
This unit provides an introduction to the rapidly-growing area of options, futures and swaps. These securities are derived from fundamental securities such as equities and bonds. The unit examines the nature of each of type of derivative security before a thorough treatment of the pricing and use of these securities for investment management and risk management purposes.
FINC6013 International Business Finance

Credit points: 6 Session: Semester 1 Classes: 1 x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester test (25%), assignment (25%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
In our highly globalised and integrated world economy, understanding international dimensions of financial management is essential for businesses. This unit provides a greater understanding of the fundamental concepts and the tools necessary for effective financial decision making by business enterprises, within a global setting.
FINC6014 Fixed Income Securities

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (25%), group assignment (25%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit covers the concepts required for investment in fixed income securities, managing bond portfolios and understanding debt markets. Topics covered include duration, convexity, interest rate risk, bond volatility and the term structure of interest rates. The more complex types of debt securities studied include mortgage backed securities, corporate bonds with embedded options such as convertible bonds and interest rate derivatives.
FINC6015 Trading in Modern Financial Markets

Credit points: 6 Session: Intensive January,Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (30%), 2x group assignments (2x10%), and final exam (50%) Mode of delivery: Block mode, Normal (lecture/lab/tutorial) day
This unit introduces students to core concepts of fundamental market design and structure, focussing on the processes that turn orders into trades in securities markets, and the forces that mould and effect order flow and execution. The unit provides insights into how the study of securities market microstructure can improve our understanding of today's global financial markets in order to: (a) facilitate better financing and investment decisions; (b) understand when, where and how to transact in financial instruments; and (c) make better use of the ever increasing flow of market information. An improved understanding of today's diverse financial markets allows for successful trading strategies to be developed in different instruments and across many markets, today and in the future.
FINC6016 Financial Instruments and Markets

This unit of study is not available in 2019

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Assessment: 2x mid-term exams (2x15%), assignment (20%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit provides students with an introduction to Australian financial markets and an evaluation of the institutions, instruments and participants involved in the industry. The main markets evaluated include the equity, money, bond, futures, options, and foreign exchange markets. The relationship between the economic environment and these markets is examined.
FINC6017 Mergers and Acquisitions

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Prohibitions: ACCT6011 Assessment: mid-semester exam (30%), assignment (20%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
Mergers and acquisitions have become perhaps the most important activity of investment banks today. They provide a fundamental way for businesses to secure growth. To analyse mergers and acquisitions, most tools from modern financial economics are needed. The unit commences with a review of how existing businesses are valued, continues with an analysis of capital structure decisions, considers management incentives and examines issues in corporate control. It then examines the motives for mergers and acquisitions. Some acquisitions are motivated by value improvements created by correcting incentive problems, some acquisitions however are motivated by bad incentives that decrease value.
FINC6021 Corporate Valuation

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (25%), assignment (25%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit applies all aspects of finance theory to the general problem of valuing companies and other financial assets. This requires a synthesis of the fundamental concepts of present value, cost of capital, security valuation, asset pricing models, optimal capital structures, derivative pricing and some related accounting concepts. The unit aims to reach a level of practical application that allows students to understand both the theoretical frameworks and institutional conventions of real world corporate valuations. Basic valuation concepts from accounting are reconciled with the finance theory on which firm value ultimately stands. Students are asked to make extensive use of Excel or similar software in valuation exercises.
FINC6022 Behavioural Finance

This unit of study is not available in 2019

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-term exam (30%), group assignment (20%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) evening
Behavioural finance examines how individual financial decision making and behaviour affect outcomes in financial markets. The unit begins with a review of the foundations of efficient markets, and then draws comparisons between the efficient ('economically rational') market and the less understood but possibly more realistic behavioural ('partially rational' or 'irrational') understanding of markets. The philosophy of the unit is that both viewpoints have advantages and each adds something new to our understanding of investor behaviour, both at the level of individual traders and at the level of the market interpreted as a mechanism for aggregating opinion and attitudes to risk.
FINC6023 Financial Risk Management

This unit of study is not available in 2019

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: Lab exercises (20%), group project (20%), mid semester exam (20%), and final exam (40%) Mode of delivery: Normal (lecture/lab/tutorial) day
Note: Department permission required for enrolment
Risk is an integral part of financial decisions. Following the rapid evolution of the discipline of financial risk management, analysts must be prepared to access the level of risk in the marketplace. This unit explores the basic concepts of modelling, measuring and managing financial risks within the regulatory framework. Topics covered include market risk (value-at-risk and expected loss), credit risk (single name, portfolio, ratings and market based models, credit derivatives), liquidity risk and operational risk. To overcome the rather quantitative nature of the topics, the unit relies heavily on practical based lab exercises with emphasis on simulations, real life examples and case studies.
FINC6024 Real Estate Finance and Investment

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: cases (40%); individual assignments (30%); major group assignment (25%); industry presentation (5%) Mode of delivery: Normal (lecture/lab/tutorial) day
Real Estate Finance will provide graduates with the knowledge and skills to value and manage real estate within the context of a mixed-asset portfolio. In particular, this unit will explore the micro-economic and macro-economic foundations of real estate, real estate valuation techniques, property derivatives and securities, real estate portfolio management, capital management and listed real estate firms. Graduates can seek employment in the property management industry, funds management industry and financial analysis roles.
FINC6025 Entrepreneurial Finance

Credit points: 6 Session: Semester 1 Classes: 1x3 hour lecture per week Prerequisites: FINC5001 Assessment: business plan (25%), quiz (20%), final examination (55%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit explores the considerations when planning the financial needs of new ventures and young companies. An overview of entrepreneurial finance reviews the concepts of valuation for entrepreneurial ventures and possible funding sources from the standpoint of the founder, management team and the funder. Fundamental valuation approaches considered in corporate finance are extended to model the opportunities and the capital structure relevant to a new venture. This unit examines the process of venture capital funding and the challenges of managing and funding growth. New topics are covered in relation to the growth and exit strategies employed by entrepreneurial ventures, as well as later stage financing, including mezzanine financing and buy-outs.
In addition, with prior written approval from the program director for the Master of Economics programs, it is possible for Masters students to count a maximum of one unit of study offered elsewhere in the University of Sydney. Students wishing to do so must consult with the program director and gain written approval in advance.

Specialisations

Choice of a specialisation is a requirement for the Masters degree

Economics Specialisation

12 credit points in compulsory units
ECON6001 Microeconomics Analysis 1

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr lecture/week, 1x1hr non-compulsory online tutorial/week Prerequisites: ECON5001 or ECON5040 Assessment: 1x1.5hr Mid-semester test (30%), 1x2hr Final exam (50%), 1xTake-home Mid-semester task equivalent to 1000wd (20%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit is an introduction to modern microeconomic theory and as such has three purposes: (i) to introduce students to the major ideas of modern microeconomics and to develop their understanding of these ideas; (ii) to develop students' facility with analytic economic models; and (iii) to develop students' ability to solve economic problems with the ideas, techniques, and models available to professional economists. Topics covered include (i) individual decision-making by economic agents, (ii) the determination of prices and resource allocation in competitive general equilibrium models, (iii) strategic behaviour by firms under imperfect competition, and (iv) contracting with imperfect information.
ECON6002 Macroeconomics Analysis 1

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr lecture/week, 1x1hr non-compulsory online tutorial/week Prerequisites: ECON5002 Assessment: Problem Sets equivalent to 1000wd (10%), 1x1.5hr Mid-semester test (30%), 1x2hr Final exam (60%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit is aimed at providing students with a sound and comprehensive knowledge of modern macroeconomic theory, an ability to formulate and solve problems analytically, and a general appreciation of how policymakers can use the analysis in practice. Topics covered include (i) micro-foundations of macroeconomics, focusing on consumption, investment, money demand, and credit rationing; (ii) equilibrium macroeconomics, focusing on the conventional prototype as well as on recent stochastic macroeconomic models; and (iii) dis-equilibrium macroeconomics, concepts, issues, and models.
At least 6 credit points of elective units from the following
ECON5006 Economics of Law and Public Policy

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Assessment: in class participation (15%), 1x10 min presentation (15%), 1x1500wd policy evaluation report (30%), 1x2hr final exam (40%) Mode of delivery: Normal (lecture/lab/tutorial) evening
This unit of study introduces tools to study the impact of laws and public policy on individual behaviours. We will critically evaluate empirical research produced by economists, sociologists, criminologists, and legal scholars. Topics will focus on criminal justice policy but will also cover other areas of law such as labour and social policy.
ECON5007 The Economics of Financial Markets

Credit points: 6 Session: Semester 2 Classes: 1x3hr lecture/week Prerequisites: ECON5001 or ECON5040 Assessment: 1x1.5hr mid-semester exam (30%), 1x1000wd assignment (20%), 1x2hr final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
Financial markets play a fundamental role in a modern economy. In this unit of study we analyse how financial markets function, with a particular focus on: the factors underlying demand and supply; risk and uncertainty; incomplete contracts and renegotiation; and asymmetric information and its implications. In doing so, we identify the key features of markets for financial assets. The unit also examines the development of financial institutions and current issues in financial markets.
ECON5008 Behavioural Economics

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: (ECON5001 or ECON5040) and (ECMT5001 or QBUS5001) Assessment: 1x2500wd Assignment (50%), 1x10mins In class presentation (20%), 1x1.5hr Mid semester test (30%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit builds on prior studies of microeconomics by introducing key concepts in Behavioural Economics. The implications of these departures from neoclassical economics will be explored for a range of topics, which may include financial decision-making, wage and incentive contracts, public policy, and charitable giving.
ECON5026 Strategic Business Relationships

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Assessment: 1x1500wd assignment (25%); 1x1hr mid-semester test (25%); 1x2hr final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
A firm's success depends on both its internal and external strategic relationships. This unit of study analyses how a firm can manage these relationships. We examine agency problems within the firm, outlining ways that firms try to mitigate these issues. Strategic relationships with input suppliers examined. We discuss how firms can establish a strong bargaining position in these relationships. The optimal boundaries of the firm are also analysed. We also study how a firm's product-market strategy affects its relationship with its rivals in the output market.
ECON6003 Mathematical Methods of Econ Analysis

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5001 and ECON5002 Assessment: Assignments equivalent to 1000wds(10%), 1x1.5hr Mid-semester test (30%), 1x2hr Final exam (60%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit is an introduction to mathematical economics. It has three purposes. First, to introduce students to the mathematical concepts and methods that are central to modern economics. Second, to give a set of economic applications of the mathematical methods. Third, to develop the students' ability to formulate logical arguments with the degree of precision and rigour demanded in modern economics. The mathematical topics covered include introductory analysis and topology, convex analysis, linear algebra, calculus of functions of several variables, optimisation, and introduction to dynamic programming and dynamical systems. The particular economic applications presented may vary from year to year, but usually include demand theory, production theory, and growth theory.
ECON6006 Market Structure and Strategic Behaviour

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON6001 or ECOF6080 Assessment: 1x750wd equivalent Mid-semester test (20%), 1x750wd equivalent Group presentation (20%), 1x1000wd Essay (20%), 1x2hr Final exam (40%), Mode of delivery: Normal (lecture/lab/tutorial) day
The purpose of this unit is to examine the nature of inter-firm rivalry in industries with market power. The unit begins with an exploration of the various ways in which firms can increase their market power by extracting more surplus from consumers by colluding with rivals or by excluding entrants. The topics for this part of the unit include price discrimination, product differentiation, advertising, research and development, predation and mergers. The unit also attempts to explain the various contractual and ownership linkages that exist between various stages of production. The latter involves a discussion of exclusive territories agreements, resale price maintenance, exclusive dealing, franchising and divisionalisation.
ECON6008 International Money and Finance

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5002 Assessment: 1x1hr Mid-semester test (30%), 1x1000wd Essay (15%), 1x2.5hr Final exam (55%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit covers the following topics: overview of the International Monetary System; foreign exchange markets, spot and future markets; swaps and options; arbitrage; covered and uncovered interest parity; exchange rate determination; forecasting exchange rate movements; exchange rate intervention; and the role of central banks.
ECON6009 Economics of the Labour Market

Credit points: 6 Session: Semester 1 Classes: 1x3hr seminar/week Assessment: take-home assignments equivalent to 1000wds 20%), 1x1.5hr mid-semester test (30%), 1x2hr final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
The purpose of this unit is to study some of the major issues in modern labour markets. Trends such as the increase in part-time work, the growing inequality in income and earnings, changes in the returns to education, and the simultaneous increase in hours of work and unemployment are addressed. The material consists of both empirical facts relating to the labour markets and the theories which are used to understand these facts. Part of the unit is devoted to the study of wage and employment contracts in the presence of uncertainty and other information problems. Imperfect information will have implications for the level of employment and unemployment, the structure of wages, and the use of particular forms of compensation such as bonuses, trust funds, and performance bonds.
ECON6010 Public Economics

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON6001 and ECON6002 Assessment: 1x2hr Final exam (50%), 1x1.5hr Mid-semester test (30%), Take-home assignments equivalent to 1000wds 20%), Mode of delivery: Normal (lecture/lab/tutorial) day
Recent innovations in public economics have overturned previously accepted policy rules. This unit focuses on the modern treatment of public policies relating to taxation, pricing of public sector outputs and public investment. Emphasis is placed on how different informational capabilities and jurisdictions of the government impact on the design of policy. The areas of application in taxation include the design of efficient and equitable consumption taxes, the structure of income taxation and the appropriate mix of income and consumption taxes. In response to market failures, pricing and investment rules for public enterprises, the provision and pricing of public goods, and policy responses to externalities and information problems are covered.
ECON6016 Trade and Development

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5001 or ECON5002 or ECON5040 Assessment: 1x1hr Mid-semester test (20%), 1x1500wd equivalent Seminar paper and presentation (20%), 1x2hr Final exam (60%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit is designed to highlight the relation between trade and development from an institutional and structural perspective, with appropriate modifications of received general economic principles, theories and policies. It closely studies the integration process of traditional segment of a developing society into its modern counterpart in countries selected from Asia, Africa, Latin America, the Caribbean, and the Pacific regions. It examines role of the state and international institutions (like the International Monetary Fund, World Bank, World Trade Organization), rationale for trade, planning and market mechanisms in developing economies, and also socio-cultural preconditions and economic requirements for a market economy. It focuses on a wide range of developmental problems and issues (such as foreign aid, debt, investment, technology transfer) from both national and international points of view.
ECON6018 Environmental Economics

Credit points: 6 Session: Semester 1 Classes: 1x3hr seminar/week Prerequisites: ECON5001 or ECON5040 Assessment: 1xSeminar paper and presentation equivalent to 1000wd (25%), 1x1.5hr Mid-semester test (25%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
In this unit of study emphasis is exclusively concerned with market failures that impact on the natural environment. Attention is given to why these market failures occur and what role there is for regulation and government policy. Topics covered include efficiency and markets, market failure, externalities (e.g. pollution), various methods of regulating pollution, and measuring the demand for environmental quality.
ECON6021 Financial Economics

Credit points: 6 Session: Semester 1 Classes: 1x3hr seminar/week Prerequisites: ECON6001 and ECON6002 Assessment: 1x2hr Mid-semester test (40%), 1x2.5hr Final exam (60%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit provides students with an understanding of the economic foundations of financial theory and the economic framework upon which that theory is based. Much of the work covered is an application of both microeconomic and macroeconomic theory to the special problems encountered in the study of the financial side of an economy. The relevance of these foundations is illustrated with empirical research using Australian and international data.
ECON6023 International Trade

Credit points: 6 Session: Semester 1 Classes: 1x3hr seminar/week Prerequisites: ECON6001 Assessment: 1x1500wd equivalent Written report (30%), 1x1hr Mid-semester test (20%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit develops the modern theory of international trade and commercial policy and examines some empirical applications. Topics covered include competitive trade theory; comparative advantage and theories of international trade patterns; the gains from trade; empirical evidence and methodology; imperfectly competitive trade theory and economies of scale, differentiated products, and technology; analysis of the effects of tariffs and trade quotas upon trade under competitive and imperfectly competitive market structures; the formation and design of regional trade agreements and the strategic behaviour of multinational enterprises. It will be suitable for those with an interest in international trade and business issues as well as those who may wish to pursue PhD research in these areas. It will be taught at a graduate level and so presumes knowledge of advanced undergraduate microeconomics.
ECON6024 Private Equity

Credit points: 6 Session: Semester 1 Classes: 1x3hr lecture/week Prerequisites: ECON5001 or ECON5040 Assessment: 2500wd written assignments (50%), 1x2hr final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
Private equity (PE) is crucial in developing new business ventures and promoting innovation. This unit investigates how PE firms operate, analysing the key strategic issues they face during the fundraising, investing and exit stages of the PE cycle. Topics covered include: the determinants and types of PE fundraising, the organisational structure of PE firms, the PE firm's investment decision, the PE firm-investee company relationship and the design of exit strategies. The role of PE in the broader economy is also discussed. Finally, we introduce some of the ethical issues PE firms face.
ECON6025 Strategic Decision Making

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON6001 or ECOF6080 Assessment: 1x1.5hr Mid semester test (40%), 1x2hr Final exam (50%), Tutorial assignments equivalent to 1000wds (10%), Mode of delivery: Normal (lecture/lab/tutorial) day
Decision makers face two types of uncertainty: uncertainty about the state of nature (how much oil is in an oilfield) and uncertainty about the strategic behaviour of other decision makers (how many oil wells they will drill). This unit of study focuses on strategic uncertainty and the uses decision makers can make of the concepts of game theory to guide their decisions. Game theory studies situations where a) agents have conflicts of interests and b) agents can take actions that directly affect their payoffs and the payoffs of others. A very broad range of applications from business and economics fit the above description and therefore can be studied by the methods of game theory. Applications include, firm pricing and output decisions, market entry and exit, hold-up, collusion, bargaining, auctions, and signalling.
ECON6029 Health Economics and Policy Evaluation

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: (ECON5001 or ECON5040) and ECMT5001 Assessment: 1x1500wd assignment (20%); 1x1hr mid-semester test (20%); 1x2hr final exam (60%) Mode of delivery: Normal (lecture/lab/tutorial) evening
In this unit, students will engage in discussing major health care issues and applying econometric tools to assess the (cost)-effectiveness of health care policy reforms. The following topics are likely to be covered: (1) international health care systems and finance, (2) determinants of the demand and supply of health care and behaviours, (3) inequalities in health and access to care, and (4) current policy reforms such as the introduction of provider incentives and co-payments. Each topic will be accompanied by an empirical application and replication assignment.
ECON6101 Special Topics in Economics 1

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5001 and ECON5002 Assessment: 1x2hr exam (50%), 1x2500wd assignment (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
Note: Department permission required for enrolment
Note: Students must seek written permission from the School of Economics Postgraduate Coordinator to enrol in this unit.
Study of a special topic in postgraduate Economics. Topics will vary from semester to semester according to staff availability and the presence of visitors. If taught in both semesters, the topic in Semester 2 will be different to that in Semester 1.
ECON6102 Special Topics in Economics 2

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5001, ECON5002 Assessment: 1x2hr exam (50%), 1x2500wd assignment (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
Note: Department permission required for enrolment
Study of a special topic in postgraduate Economics. Topics will vary from semester to semester according to staff availability and the presence of visitors. If taught in both semesters, the topic in Semester 2 will be different to that in Semester 1.

Econometrics Specialisation

6 credit points in compulsory units
ECMT6002 Econometric Applications

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x3hr lecture/week, 1x1hr non-compulsory online tutorial/week Prerequisites: ECMT5001 Prohibitions: ECMT5002 Assessment: 1x1500wd equivalent Group project (25%), 1x1hr Mid-semester test (25%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit illustrates how econometric methods can be applied to economic data to solve problems that arise in economics and business. Econometric theory provides the techniques needed to quantify the strength and form of relationships between variables. Applied econometrics is concerned with the strategies that need to be employed to use these techniques effectively; to determine which model to specify and whether the data are appropriate. Guidelines for undertaking applied work are discussed. Case studies drawn from economics, marketing, finance, and accounting are also discussed. The unit includes a major econometric modelling project.
At least 12 credit points of elective units from the following
ECMT6003 Applied Business Forecasting

Credit points: 6 Session: Semester 2 Classes: 1x3hr lecture/week Prerequisites: ECMT6002 Assessment: 1x1500wd equivalent Take-home assignment (30%), 1x1hr Mid-semester test (20%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit aims to provide an introduction to the practice of forecasting in business. Forecasting requires both practical experience in model building and some statistical theory. To blend the theory and practice, many business forecasting examples are discussed. Excel is used to do useful preliminary calculations and plotting. At the end of this unit, students should be able to understand the major techniques of forecasting and be able to intelligently forecast actual business time series using Excel and its extensions. Topics covered include: the aims of forecasting and relation to time series analysis; types of time series; plotting and charting time series; practical examples of forecasting and forecasting issues; growth curve methods; least squares (what you need to know for forecasting); decomposition of time series; elementary exponential smoothing with Excel; serial correlation (and Durbin Watson statistic); applied ARIMA modelling and identifying seasonality and "hidden" periodicities.
ECMT6006 Applied Financial Econometrics

Credit points: 6 Session: Semester 1 Classes: 1x3hr lecture/week Prerequisites: ECMT6002 Assessment: Take-home assignments equivalent to 1500wds (30%), 1x1hr Mid-semester test (20%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit provides an introduction to some of the widely used econometric models designed for the analysis of financial data, and the procedures used to estimate them. Special emphasis is placed upon empirical work and applied analysis of real market data. The unit deals with topics such as: the statistical nature of financial data; the specification, estimation and testing of assets pricing models; the analysis of high frequency financial data; and the modelling of volatility in financial returns. Throughout the unit, students are encouraged (especially in assignments) to familiarise themselves with financial data and learn how to apply the models to these data.
ECMT6007 Analysis of Panel Data

Credit points: 6 Session: Semester 1 Classes: 1x3hr lecture/week Prerequisites: ECMT6002 Assessment: 1xGroup assignment equivalent to 1000wds (20%), 1x1.5hr Mid-semester test (30%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
Recently, empirical research in economics, finance, marketing and accounting has been enriched by the increasing availability of new sources of data, known as panel data. A 'panel' refers to the pooling of observations on a cross section of households, countries, firms etc. over several time periods. Panel data sets possess several major advantages over conventional cross-sectional or time series data sets. This unit aims to offer a comprehensive treatment of the analysis of panel data, which will allow students to deal in a pragmatic way with fundamental issues, such as controlling for individual heterogeneity, reducing collinearity among regressors, addressing statistical hypotheses and identifying effects that are simply not detectable in pure cross-section or time series data.

Financial Economics Specialisation

6 credit points in prerequisite units
FINC5001 Capital Markets and Corporate Finance

Credit points: 6 Session: Intensive January,Intensive July,Semester 1,Semester 2 Classes: 1x 3hr seminar per week Assessment: mid semester-test (20%), major assignment (25%), and final examination (55%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening, Block
This unit provides an introduction to basic concepts in corporate finance and capital markets. It is designed to equip students to undertake further studies in finance. After reviewing some very basic ideas in finance and financial mathematics, the unit provides an introduction to the valuation of equity and debt securities and companies. The unit then examines issues related to pricing in capital markets and ends with a discussion of theory and practice related to capital structure and dividend policy.
12 credit points in compulsory units
ECMT6006 Applied Financial Econometrics

Credit points: 6 Session: Semester 1 Classes: 1x3hr lecture/week Prerequisites: ECMT6002 Assessment: Take-home assignments equivalent to 1500wds (30%), 1x1hr Mid-semester test (20%), 1x2hr Final exam (50%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit provides an introduction to some of the widely used econometric models designed for the analysis of financial data, and the procedures used to estimate them. Special emphasis is placed upon empirical work and applied analysis of real market data. The unit deals with topics such as: the statistical nature of financial data; the specification, estimation and testing of assets pricing models; the analysis of high frequency financial data; and the modelling of volatility in financial returns. Throughout the unit, students are encouraged (especially in assignments) to familiarise themselves with financial data and learn how to apply the models to these data.
ECON6021 Financial Economics

Credit points: 6 Session: Semester 1 Classes: 1x3hr seminar/week Prerequisites: ECON6001 and ECON6002 Assessment: 1x2hr Mid-semester test (40%), 1x2.5hr Final exam (60%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit provides students with an understanding of the economic foundations of financial theory and the economic framework upon which that theory is based. Much of the work covered is an application of both microeconomic and macroeconomic theory to the special problems encountered in the study of the financial side of an economy. The relevance of these foundations is illustrated with empirical research using Australian and international data.
At least 6 credit points in elective units from the following
ECON6008 International Money and Finance

Credit points: 6 Session: Semester 2 Classes: 1x3hr seminar/week Prerequisites: ECON5002 Assessment: 1x1hr Mid-semester test (30%), 1x1000wd Essay (15%), 1x2.5hr Final exam (55%), Mode of delivery: Normal (lecture/lab/tutorial) day
This unit covers the following topics: overview of the International Monetary System; foreign exchange markets, spot and future markets; swaps and options; arbitrage; covered and uncovered interest parity; exchange rate determination; forecasting exchange rate movements; exchange rate intervention; and the role of central banks.
FINC6000 Quantitative Finance and Derivatives

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Prohibitions: FINC5002 Assumed knowledge: This unit requires students to have some background in calculus, matrices, statistics and probability. Assessment: assignment (20%), mid-semester exam (30%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
This unit provides students with an introduction to quantitative models and techniques in finance. Topics covered include basic stochastic calculus, probability measures and the role of numeraires, Black-Scholes and Hull-White models, and the theoretical and numerical techniques for valuing derivatives. There is a focus on both the intuitive and mathematical understanding of these topics, as well as their application to problems in quantitative finance.
FINC6001 Intermediate Corporate Finance

Credit points: 6 Session: Intensive January,Intensive July,Semester 1,Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester test (30%), major assignment (30%), final exam (40%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening, Block
This unit extends some of the fundamental concepts introduced in FINC5001 Capital Markets and Corporate Finance, and develops a rigorous framework for the analysis and understanding of key aspects of corporate financial decision making. Fundamental concepts in corporate finance are extended to more complex settings. The unit examines more advanced approaches to asset pricing and capital budgeting. New topics are covered in relation to derivative securities and real options applications in capital budgeting. The issues of the cost of capital, corporate capital structure, and corporate dividend policy, are extended to cover the interaction of corporate and personal taxation, agency problems, and information signalling.
FINC6005 Advanced Asset Pricing

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 or FINC5002 or FINC6000 Assessment: 2 x In class test (2x15%), assignment (20%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
Note: Only students with strong quantitative/mathematical skills should attempt this course
This unit covers the fundamentals of asset pricing and valuation, under equilibrium conditions and under no-arbitrage restrictions. It reviews the main themes in modern asset pricing, and introduce ideas of importance to the evolution of the discipline, and consequently of relevance to a practitioner's long term perspective. The unit emphasises quantitative methods, so students are required to have fairly strong mathematical skills. Nevertheless, the mathematical tools needed in the unit are adequately reviewed.
FINC6007 Financial Strategy

This unit of study is not available in 2019

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: individual assignment (20%), group assignment (30%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit explores value investment principles used in investment strategies. Both investment strategies and company strategies are analysed to examine how to translate a company's strategy into shareholders' profit. The unit also provides students with the skill set of analysing and interpreting financial reports, identifying good investment and avoiding financial scandals. Great investment practitioners' (Benjamin Graham, Warren E. Buffett and Charles Munger) works are studied in detail.
FINC6009 Portfolio Theory and its Applications

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 or FINC5002 or FINC6000 Assessment: mid semester exam (20%), individual assignment (15%), group assignment (15%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit covers several aspects of modern/post modern portfolio theory.An introduction to mathematical optimisation techniques in the presence of uncertainty is covered and results from modern portfolio theory to the Capital Asset Pricing Model derived. The unit also examines other popular models such as the Arbitrage Pricing Theory and Black-Litterman Model and concludes with some topical examples from industry. There is a degree of mathematical sophistication associated with this unit and consequently students should be comfortable with a mathematical approach. However, the required mathematical tools are covered in the unit.
FINC6010 Derivative Securities

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (25%), assignment (25%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
This unit provides an introduction to the rapidly-growing area of options, futures and swaps. These securities are derived from fundamental securities such as equities and bonds. The unit examines the nature of each of type of derivative security before a thorough treatment of the pricing and use of these securities for investment management and risk management purposes.
FINC6013 International Business Finance

Credit points: 6 Session: Semester 1 Classes: 1 x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester test (25%), assignment (25%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
In our highly globalised and integrated world economy, understanding international dimensions of financial management is essential for businesses. This unit provides a greater understanding of the fundamental concepts and the tools necessary for effective financial decision making by business enterprises, within a global setting.
FINC6014 Fixed Income Securities

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (25%), group assignment (25%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit covers the concepts required for investment in fixed income securities, managing bond portfolios and understanding debt markets. Topics covered include duration, convexity, interest rate risk, bond volatility and the term structure of interest rates. The more complex types of debt securities studied include mortgage backed securities, corporate bonds with embedded options such as convertible bonds and interest rate derivatives.
FINC6015 Trading in Modern Financial Markets

Credit points: 6 Session: Intensive January,Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (30%), 2x group assignments (2x10%), and final exam (50%) Mode of delivery: Block mode, Normal (lecture/lab/tutorial) day
This unit introduces students to core concepts of fundamental market design and structure, focussing on the processes that turn orders into trades in securities markets, and the forces that mould and effect order flow and execution. The unit provides insights into how the study of securities market microstructure can improve our understanding of today's global financial markets in order to: (a) facilitate better financing and investment decisions; (b) understand when, where and how to transact in financial instruments; and (c) make better use of the ever increasing flow of market information. An improved understanding of today's diverse financial markets allows for successful trading strategies to be developed in different instruments and across many markets, today and in the future.
FINC6016 Financial Instruments and Markets

This unit of study is not available in 2019

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Assessment: 2x mid-term exams (2x15%), assignment (20%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit provides students with an introduction to Australian financial markets and an evaluation of the institutions, instruments and participants involved in the industry. The main markets evaluated include the equity, money, bond, futures, options, and foreign exchange markets. The relationship between the economic environment and these markets is examined.
FINC6017 Mergers and Acquisitions

Credit points: 6 Session: Semester 2 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Prohibitions: ACCT6011 Assessment: mid-semester exam (30%), assignment (20%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day, Normal (lecture/lab/tutorial) evening
Mergers and acquisitions have become perhaps the most important activity of investment banks today. They provide a fundamental way for businesses to secure growth. To analyse mergers and acquisitions, most tools from modern financial economics are needed. The unit commences with a review of how existing businesses are valued, continues with an analysis of capital structure decisions, considers management incentives and examines issues in corporate control. It then examines the motives for mergers and acquisitions. Some acquisitions are motivated by value improvements created by correcting incentive problems, some acquisitions however are motivated by bad incentives that decrease value.
FINC6021 Corporate Valuation

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-semester exam (25%), assignment (25%), final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit applies all aspects of finance theory to the general problem of valuing companies and other financial assets. This requires a synthesis of the fundamental concepts of present value, cost of capital, security valuation, asset pricing models, optimal capital structures, derivative pricing and some related accounting concepts. The unit aims to reach a level of practical application that allows students to understand both the theoretical frameworks and institutional conventions of real world corporate valuations. Basic valuation concepts from accounting are reconciled with the finance theory on which firm value ultimately stands. Students are asked to make extensive use of Excel or similar software in valuation exercises.
FINC6022 Behavioural Finance

This unit of study is not available in 2019

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: mid-term exam (30%), group assignment (20%), and final exam (50%) Mode of delivery: Normal (lecture/lab/tutorial) evening
Behavioural finance examines how individual financial decision making and behaviour affect outcomes in financial markets. The unit begins with a review of the foundations of efficient markets, and then draws comparisons between the efficient ('economically rational') market and the less understood but possibly more realistic behavioural ('partially rational' or 'irrational') understanding of markets. The philosophy of the unit is that both viewpoints have advantages and each adds something new to our understanding of investor behaviour, both at the level of individual traders and at the level of the market interpreted as a mechanism for aggregating opinion and attitudes to risk.
FINC6023 Financial Risk Management

This unit of study is not available in 2019

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: Lab exercises (20%), group project (20%), mid semester exam (20%), and final exam (40%) Mode of delivery: Normal (lecture/lab/tutorial) day
Note: Department permission required for enrolment
Risk is an integral part of financial decisions. Following the rapid evolution of the discipline of financial risk management, analysts must be prepared to access the level of risk in the marketplace. This unit explores the basic concepts of modelling, measuring and managing financial risks within the regulatory framework. Topics covered include market risk (value-at-risk and expected loss), credit risk (single name, portfolio, ratings and market based models, credit derivatives), liquidity risk and operational risk. To overcome the rather quantitative nature of the topics, the unit relies heavily on practical based lab exercises with emphasis on simulations, real life examples and case studies.
FINC6024 Real Estate Finance and Investment

Credit points: 6 Session: Semester 1 Classes: 1x 3hr seminar per week Prerequisites: FINC5001 Assessment: cases (40%); individual assignments (30%); major group assignment (25%); industry presentation (5%) Mode of delivery: Normal (lecture/lab/tutorial) day
Real Estate Finance will provide graduates with the knowledge and skills to value and manage real estate within the context of a mixed-asset portfolio. In particular, this unit will explore the micro-economic and macro-economic foundations of real estate, real estate valuation techniques, property derivatives and securities, real estate portfolio management, capital management and listed real estate firms. Graduates can seek employment in the property management industry, funds management industry and financial analysis roles.
FINC6025 Entrepreneurial Finance

Credit points: 6 Session: Semester 1 Classes: 1x3 hour lecture per week Prerequisites: FINC5001 Assessment: business plan (25%), quiz (20%), final examination (55%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit explores the considerations when planning the financial needs of new ventures and young companies. An overview of entrepreneurial finance reviews the concepts of valuation for entrepreneurial ventures and possible funding sources from the standpoint of the founder, management team and the funder. Fundamental valuation approaches considered in corporate finance are extended to model the opportunities and the capital structure relevant to a new venture. This unit examines the process of venture capital funding and the challenges of managing and funding growth. New topics are covered in relation to the growth and exit strategies employed by entrepreneurial ventures, as well as later stage financing, including mezzanine financing and buy-outs.

Exchange

Units of Study taken on exchange will count as Electives.
ECON6501 Economics Postgraduate Exchange 1

Credit points: 6 Session: Semester 1,Semester 2 Mode of delivery: Normal (lecture/lab/tutorial) day
Students wishing to undertake a Study Abroad program must enrol in this unit to receive credit for a unit equivalent to an ECON postgraduate level unit.
ECON6502 Economics Postgraduate Exchange 2

Credit points: 6 Session: Semester 1,Semester 2 Mode of delivery: Normal (lecture/lab/tutorial) day
Students wishing to undertake a Study Abroad program must enrol in this unit to receive credit for a unit equivalent to an ECON postgraduate level unit.
ECON6503 Economics Postgraduate Exchange 3

Credit points: 6 Session: Semester 1,Semester 2 Mode of delivery: Normal (lecture/lab/tutorial) day
Students wishing to undertake a Study Abroad program must enrol in this unit to receive credit for a unit equivalent to an ECON postgraduate level unit.
ECON6504 Economics Postgraduate Exchange 4

Credit points: 6 Session: Semester 1,Semester 2 Mode of delivery: Normal (lecture/lab/tutorial) day
Students wishing to undertake a Study Abroad program must enrol in this unit to receive credit for a unit equivalent to an ECON postgraduate level unit.
ECON6505 Economics Postgraduate Exchange 5

Credit points: 6 Session: Semester 1,Semester 2 Mode of delivery: Normal (lecture/lab/tutorial) day
Students wishing to undertake a Study Abroad program must enrol in this unit to receive credit for a unit equivalent to an ECON postgraduate level unit.
ECON6506 Economics Postgraduate Exchange 6

Credit points: 6 Session: Semester 1,Semester 2 Mode of delivery: Normal (lecture/lab/tutorial) day
Students wishing to undertake a Study Abroad program must enrol in this unit to receive credit for a unit equivalent to an ECON postgraduate level unit.
ECON6507 Economics Postgraduate Exchange 7

Credit points: 6 Session: Semester 1,Semester 2 Mode of delivery: Normal (lecture/lab/tutorial) day
Students wishing to undertake a Study Abroad program must enrol in this unit to receive credit for a unit equivalent to an ECON postgraduate level unit.
ECON6508 Economics Postgraduate Exchange 8

Credit points: 6 Session: Semester 1,Semester 2 Mode of delivery: Normal (lecture/lab/tutorial) day
Students wishing to undertake a Study Abroad program must enrol in this unit to receive credit for a unit equivalent to an ECON postgraduate level unit.

Capstone Units of Study

ECON7030 Economics Research Project

Credit points: 6 Session: Semester 1,Semester 2 Classes: regular workshop meetings throughout semester to assist with project management Prerequisites: 24 credit points from Economics elective units of study Prohibitions: ECON7010 or ECON7020 Assessment: 1x6,000wd research project (100%) Mode of delivery: Normal (lecture/lab/tutorial) day
This unit represents a culminating academic experience for students in the MEc by bringing together their knowledge in Economic theory and methodology to analyse an economic problem of their choice. This unit involves the writing and completion of a 6,000 word report. The emphasis is on students acquiring skills in identifying an economic problem, undertaking the required analysis using appropriate tools and disseminating the results.