Introductory Microeconomics addresses the economic decisions of individual firms and households and how these interact in markets. It is a compulsory core unit for the Bachelor of Economics and an alternative core unit for the Bachelor of Economic and Social Science. Economic issues are pervasive in contemporary Australian society. Introductory Microeconomics introduces students to the language and analytical framework adopted in Economics for the examination of social phenomena and public policy issues. Whatever one's career intentions, coming to grips with economic ideas is essential for understanding society, business and government. Students are given a comprehensive introduction to these ideas and are prepared for the advanced study of microeconomics in subsequent years. It is assumed that students undertaking this unit will have a prior knowledge of mathematics.

Introductory Macroeconomics addresses the analysis of the level of employment and economic activity in the economy as a whole. It is a compulsory core unit for the Bachelor of Economics and an alternative core unit for the Bachelor of Economic and Social Sciences. Introductory Macroeconomics examines the main factors that determine the overall levels of production and employment in the economy, including the influence of government policy and international trade. This analysis enables an exploration of money, interest rates and financial markets, and a deeper examination of inflation, unemployment and economic policy. It is assumed that students undertaking this unit will have a prior knowledge of mathematics.

This unit of study provides an introduction to the quantitative methods used in economics and business. Emphasis is placed on developing the skills to set up models to study real-world phenomena, using appropriate techniques to manipulate and analyse these models and their economic interpretation. In this unit particular emphasis will be placed on the intuition of the models studied, making extensive use of a range of economic examples and business applications. It is important to note that while mathematical techniques are used in this unit, this unit is not intended as a substitute for mathematics units offered by the School of Mathematics and Statistics. Students wishing to pursue further study in mathematics, such as a major in mathematics, should consult the Faculty of Science Handbook for offerings by the School of Mathematics and Statistics. Note this unit is not available to students from the Faculty of Science.

This unit explores the Australian economy and introduces students to the application of economic reasoning and techniques to real-world problems. A focus of the unit is how government policy is affected by the influences brought to bear by the both domestic issues and the international environment. Each issue is addressed within an economic framework. The methods of instruction, learning and assessment are designed to develop a range of graduate attributes, with an emphasis on developing communication skills and creative thinking.

From school teachers manipulating test scores, to criminal behaviour, economics is increasingly being used to analyse non-market issues. This unit provides insights on these issues using an economic perspective. An underlying premise of this analysis is that people respond to incentives created by rules and institutions, sometimes in perverse or unintended ways. This unit studies real-world cases, including compulsory testing in schools, crime and punishment, corruption, and the role of government in correcting market failures. This unit also considers the implications for traditional economic analysis if information is imperfect and people are not fully rational.

Honours is an intensive year-long program of advanced study based around research. Honours is undertaken after successful completion of a Bachelor degree and where the overall mark is a minimum 70% average across senior economics units AND a 70% average across specified advanced senior units. Entry into Honours is selective and work at this level is challenging. Students will complete a thesis and five coursework seminars throughout the year. For further information contact the Honours Coordinator in the department or consult the Handbook entry for the relevant subject area.

Refer to ECON4101

Refer to ECON4101

Refer to ECON4101

The aim of Intermediate Microeconomics is the development of theoretical and applied skills in economics. It covers applications and extensions of the theory of consumer choice, firm behaviour and market structure. Emphasis is given to the economics of information and choice under uncertainty; industry structures other than monopoly and perfect competition; markets for factors of production; general equilibrium and economic efficiency; market failure and the role of government. This unit provides a basis for the more specialised options that comprise third year economics.

This unit of study develops models of the goods, money and labour markets, and examines issues in macroeconomic policy. Macroeconomic relationships, covering consumption, investment, money and employment, are explored in detail. Macro-dynamic relationships, especially those linking inflation and unemployment, are also considered. Exchange rates and open economy macroeconomics are also addressed. In the last part of the unit, topics include the determinants and theories of economic growth, productivity and technology, the dynamics of the business cycle, counter-cyclical policy and the relationship between micro and macro policy in the context of recent Australian experience.

Students will learn how a modern financial system operates and the relationships between the financial system and the economy, with a particular emphasis on understanding business cycles. We will study how money/capital changes hands between agents over time, both directly and through institutions. We will study how these exchanges affect the economy, and how central banks and other policy institutions monitor, influence and regulate these exchanges. There will be an equal emphasis on understanding the modern financial system and on analysing monetary policy and financial regulation.

This unit introduces new and comprehensive methods for the analysis and formation of business strategy. The unit analyses strategies for developing competitive advantages, including product differentiation, cost advantages and product life cycles; implementing incentives, control, firm boundaries, and internal firm decision-making mechanisms; implementing pricing, auction and signalling practices; assessing industry attractiveness and the regulatory/trade practices environment; and managing industry cooperation and conflict. Students are taught a set of tools that they can bring to bear on new problems. Understanding competitive dynamics and strategic thinking are emphasised. Case studies and problem-solving form an important part of the teaching method.

This unit is comprised of lectures based upon the curriculum for ECOS2001 Intermediate Microeconomics, supported by a seminar for one hour a week. The content of lectures reflect a more analytical and critical treatment of the topics than ECOS2001. The topics, which build on the theory of consumer and firm behaviour and market structure, include game theory, oligopoly, general equilibrium and welfare, externalities and public goods and the economics of information.

This unit is comprised of lectures based upon the curriculum for ECOS2002 Intermediate Macroeconomics, supported by a seminar for one hour a week. The content of lectures reflects a more intensive treatment of the topics than ECOS2002. Topics covered include: models of the goods, money and labour markets; macro-economic relationships such as consumption, investment, demand for money and labour demand and supply; macro-dynamic relationships, especially those linking inflation and unemployment; exchange rates and open economy macroeconomics; theories of economic growth; productivity and technological change; the dynamics of the business cycle; and the relationship between micro- and macro-economic policy.

This unit provides an introduction to mathematical techniques commonly employed by economists. Students who wish to proceed to final year Economics Honours must complete either ECOS2903 or MATH2070. Topics include: limits, continuity, differentiation of single- and multi-variable functions, unconstrained and constrained optimisation.

This unit examines the economic transformation of less-developed countries from microeconomic and macroeconomic perspectives. It covers applied topics such as education, health, nutrition, demographics, labour, agriculture and the private sector, focusing on how policies attempt to overcome market and institutional failures that are particularly acute in the developing world. Focus is given to applying theoretical and empirical tools necessary to conceptualise, analyse and interpret various issues in economic development. Applied examples from developing countries are used throughout the unit.

This unit deals with the coordination and motivation problems faced by firms. More specifically this unit examines: whether firms use price or command mechanisms to allocate resources within firms; the problems associated with designing incentive contracts; the principles of efficient contract design and; the real world applications of those principles. The final section deals with the manner in which the coordination and motivation problems faced by firms determines their financial, vertical and horizontal structure.

Where do the current beliefs - theories, doctrines, postulates and attitudes - of modern economics come from? If current theories and doctrines have a definite historical beginning, what schools of thought did they supplant? Are there alternative or dissident views which subsisted alongside mainstream economics in the twentieth century - and if so, what are they and where did they originate from? This unit seeks to answer these questions, as well as others. It provides an overview of the development of economic ideas from the seventeenth to the twentieth century, combined with a more intensive focus on the thought of certain key figures in that history. The particular topics covered include: the formation of economics to 1776; Adam Smith; classical economics from Smith to J.S. Mill; the rise of marginalist economics; John Maynard Keynes; and orthodox and heterodox currents in twentieth century economics.

This unit of study examines the nature of inter-firm rivalry in industries with market power. It explores 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 unit also analyses the international competitiveness of industries in the context of industry assistance and the prevalence of foreign multinationals. Competition policy is also discussed.

This unit of study provides a systematic analysis of the theory of international trade and trade policy. Initially differences between countries are emphasised as the source of trade and the gains from trade. Models that are examined include the Classical-Ricardian model, the Heckscher-Ohlin model and the Specific-Factors model. Next economics of scale and imperfect competition are introduced as sources of trade and gains from trade. The unit concludes with an examination of empirical studies aimed at testing trade theories. The analysis of trade policy begins with a discussion of the instruments of trade policy, in particular, tariffs and quotas and their effect on welfare. This discussion is then extended to the case of imperfect competition and strategic trade policy.

This unit studies macroeconomic theory and policy in a global trading world. The microfoundations of the various sectors are examined in the context of an open economy. The evolution of international money and capital markets is described, the operation of the foreign exchange market is examined, showing how its microstructure affects its macro performance. Theories and tests of the efficiency of international capital markets are surveyed, as well as core theories and tests of exchange rate and asset price determination. The unit develops the macroeconomic implications of monetary and fiscal policies for small and large open economies for different regimes.

This unit aims to provide an understanding of labour markets and related issues such as work conditions, pay and employment levels. Labour supply and demand, theories of wage determination, labour mobility and discrimination are examined. It also analyses the role of trade unions and labour market contracts. These topics are applied to current issues in Australian labour markets such as enterprise bargaining, the role of centralised wage fixing systems, training and other labour market programs. Policies designed to improve the functioning of the labour market are examined and particular attention is given to the problem of persistent unemployment.

This unit provides an overview of the main elements of monetary economics, with emphasis upon macroeconomic issues - analysis of economic processes in which money enters the picture in an essential manner. The content primarily concerns economic principles and theory, but there is also considerable focus on the Australian monetary system and monetary policy in particular. The particular topics covered include: functions of money; the concept of 'liquidity'; money demand; determinants of money supply changes; financial crises and the 'lender of last resort' function of central banking; the Reserve Bank of Australia and the Australian Prudential Regulation Authority; term and risk structures of interest rates; alternative theories of the level of the rate of interest; the monetary policy transmission mechanism; monetary policy instrument choice; central bank credibility; policy reaction functions; the global monetary system; and Reserve Bank market operations.

Public Finance is about the taxing and spending decisions of governments. The unit covers a wide range of public finance topics. After an introduction to welfare economics and the role of government in the economy, the unit focuses on the revenue side of the budget: tax incidence, efficient and equitable taxation, the Australian system of revenue raising, issues of tax reform and the theory and practice of public utility pricing. It then focuses on the expenditure side of the government budget: public goods, externalities, and programs aimed at redistribution. It also introduces techniques of policy evaluation.

To think and act strategically, one needs to evaluate the effect of one's actions on the actions of others. As most economic decisions are strategic, such as the decision to lower a price or introduce a new tax, economics, if it is to avoid simplistic models, requires a theoretical framework capable of illuminating strategic behaviour. This unit offers a comprehensive, critical introduction to the theory which purports, not only to satisfy this theoretical need, but also potentially to unify the social sciences: game theory. After examining important concepts of game theory, the unit investigates the repercussions for the theory of bargaining and for the evolution of social institutions.

The natural environment is invariably affected by production and consumption in our modern economy. In particular, environmental outcomes are important in the presence of market failures (externalities and public goods). This unit focuses on developing a student's detailed understanding of the economic techniques used by policymakers to address environmental issues. These techniques include: Pigovian taxes and subsidies; regulation with asymmetric information; marketable permits; pricing contributions for public goods; optimal damages; and the allocation of property-rights and market failures.

Law and economics examines the economic role of law and legal institutions on the actions of economic agents. The economic analysis of law is founded on models of human behaviour and examines how decision making is affected by different legal regimes. The behavioral approach gives rise to a set of principles that can be applied widely across disparate areas of the law, and is becoming increasingly important world-wide, as such analysis is often utilized in courts and public policy forums. The unit begins with a revision of relevant tools of economic analysis. Subsequently, it studies the economics of various branches of law such as: property; contract; nuisance; accident and liability law; and, criminal law

Experimental economics uses experimental methods to evaluate the performance of economic models, institutions and policies. Behavioural economics combines experimental and field evidence with insights from neighbouring disciplines such as psychology, to develop richer economic models of decision-making. This unit will develop the key research methods and major findings of each of these fields, and explore both theoretical and practical implications. Students will read a number of seminal research papers in both experimental and behavioural economics, and will have opportunities to participate in classroom experiments.

The purpose of this unit is to introduce the student to the methods of health economics and demonstrate how these methods can be applied to analyse issues in health policy and management. This unit will teach the student to use economic analysis to understand critical issues in health care and health policy. Topics covered include the institutions of the Australian system of health care and health statistics, evaluation techniques, production of health, demand for health care and technology, moral hazard and adverse selection in health insurance markets, health labour markets, including physician-patient interactions, managed care, regulation and payment systems for providers, comparative health systems, the pharmaceutical industry, health policy and social insurance.

Study of a special topic in 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 of Semester 1.

The unit of study provides theoretical and empirical training in analysing macroeconomic fluctuations and the interactions between the real economy and asset markets. The unit of study will introduce theoretical models of the business cycle to identify sources of economic fluctuations. It then provides a theoretical framework in which the asset market-the real economy can be analysed. In addition to theoretical analysis, the unit will develop empirical tools for analysing economic and financial indicators as well as evaluating the performance of theoretical models. The role of government policy will also be discussed by taking both Australian and global episodes.

Financial assets play a vital role coordinating the actions of savers and investors; consequently, they play a crucial role in creating wealth and facilitating economic activity. The aim of this unit is to explore the economic principles underlying: the pricing and development of financial assets; the trade-off between risk and return and the how investors construct portfolios in response to this trade-off. The focus is on the economics of financial markets: the factors of demand and supply; risk and uncertainty; incomplete contracts and renegotiation; and asymmetric information and its implications. We will emphasize the key aspects of markets for financial assets and the main differences to markets for consumption goods. The unit also examines the development of financial institutions and current issues in financial markets.

Personnel economics deals with the analysis of human resource issues within organisations. Throughout the unit of study, students will be introduced to economic concepts and analytical tools that provide a rigorous framework with which to analyse these relationships. Topics covered include recruitment and hiring decisions; turnover of staff; remuneration and motivation schemes designed to enhance productivity; and, the analysis of team production within the modern business organisation. Empirical studies that test theoretical predictions will also be considered throughout the unit.

This unit covers topics in economic history from the advent of European 'modernity' in the 17th century to the late 20th century. A major focus is identifying the main social, institutional and economic forces that explain the unprecedented development of the world economy over the past 300 years. Topics include the first industrial revolution in Britain, the industrialization of Western Europe and the United States, the 1930s Great Depression and recovery, post-World War II reconstruction and 'golden era' of growth, and East Asia's meteoric growth performance.

Market outcomes can be undesirable when self-interested firms reduce welfare for consumers and society. This unit of study focuses on the regulation of firms in markets with imperfect competition. We analyse regulation of natural monopolies, focusing on the key issue of asymmetric information between the regulator and the monopolist. In this unit we also examine oligopoly markets in which firms can reduce welfare through collusion, price fixing and vertical restraints. Emphasising real-world examples, we examine competition policy and merger regulation.

This unit applies economic concepts and theory to analyse the family. The unit explores the empirical support for the theories, evaluates explanations for recent demographic and labour market trends, and examines the implications of using the family as the foundation of analysis of economic activity in society. Topics covered include family formation, trends in educational attainment, the changing roles of men and women in the labour market and the household, and the effects of government policies on the family.

ECOS3901 Advanced Microeconomics is the second unit of study in the microeconomics sequence in the Economics Honours program. The goal of the unit is to provide a working knowledge and understanding of the most powerful methods of analysis and discourse in modern microeconomic theory. We build on the foundations of ECOS2901 and ECOS2903 to continue progress toward the frontier of microeconomics.

ECOS3902 Advanced Macroeconomics is a third year honours unit of study in macroeconomics. Its main objective is to develop a framework for thinking about macroeconomic questions. This unit is designed for the students enrolled in the Economics Honours stream. ECOS2901, ECOS2902, ECOS2903 and ECOS3901 are prerequisites and the corequisite is ECOS3903,or ECMT3110 plus one of ECMT2120, ECMT3120, ECMT3130, ECMT3160 or ECMT3170.

This unit of study is designed to provide students with various topics in applied microeconomics. Estimation of the labour supply elasticity, returns to schooling, and returns to training programs are examples of topics this unit will cover. Various empirical topics in international trade, environmental economics, and health economics will also be discussed. Students will explore econometric methodologies extensively used in applied microeconomics (e.g., instrument variables, generalise methods of moments, panel data methods, probit and logit models, Tobit model, and sample selection model).

This unit provides an introduction to econometric theory and methods that can be useful for understanding applied (mostly macroeconomic/finance) models and research. It also aims to provide students with the necessary analytical tools for undertaking applied research using time series data and discusses how time series techniques can be applied to other areas of economics such as international trade, energy economics, economics of terrorism. This unit can be both complementary to and substitutive for Applied Microeconometrics, which focuses on empirical methods in applied microeconometrics.