Economics of Household Finance
| Code | School | Level | Credits | Semesters |
| ECON4051 | School of Economics | 4 | 15 | Spring China |
- Code
- ECON4051
- School
- School of Economics
- Level
- 4
- Credits
- 15
- Semesters
- Spring China
Summary
This module covers the central issues in the economics of household finance. Increasingly economists are interested in the decisions of consumers as well as the decisions of firms. Household finance is the study of the behavior of individuals and households in financial markets including those for secured (e.g. mortgage) and unsecured (e.g. credit card) lending and related economic models of consumption smoothing, liquidity constraints and household behavior. The module begins with the central topic of consumption smoothing, focusing on the role of credit markets and income risk in household behavior. Later topics include financial literacy, self-control, mortgage market design, stock market participation and the regulation of consumer credit markets. The module content includes come theoretical material but is mostly applied, with a focus on how large-scale individual level proprietary and survey datasets can be used to understand household financial behavior.
Please note: This module is assessed at the end of Spring semester. First sit/ Re-sit exams are scheduled normally in the summer and can take the same form as the missing/ failed component of the assessment (exam, essay etc.) or other form, as decided by the School.
Target Students
MSc students in the School of Economics studying on the MSc in Economics, Money and Finance
Classes
- One 2-hour lecture each week for 10 weeks
Assessment
- 100% Exam1 (3-hour): 3 hours exam.
Assessed by end of spring semester
Educational Aims
The module aims to:give students a sound knowledge of modern economics of household financeintroduce students to theories of consumer behavior in credit marketshelp students understand the ways in which economic analysis can be used to formulate models of consumer financial decisionsshow students how these models can be testedshow students how the outcomes of these tests contribute to the understanding of household behavior and policy implications.Learning Outcomes
A Knowledge and Understanding. Students should demonstrate
A4 An advanced knowledge of specialisms in economics, including the current state of research in that field
A5 An understanding of institutions, policies and the broader context in which specific economic analysis is applied
B Intellectual Skills. Students should be able to
B2 Use analysis, deduction and induction to solve economic problems
B3 Apply economic theory to economic institutions and policies
Conveners
- xuyan Lou