Module description

This module builds on the foundations provided in Financial Modelling and

Forecasting Techniques provided in the 1 st term and aims to provide students with
a wider range of econometric and financial economics skills that will be useful in
writing the Dissertation. It focuses on the one hand in using real world data to
estimate equations and to test hypotheses, and on the other on financial economic
modeling to enable the student to read high level papers in the literature.

Learning outcomes
By the end of the course you should be able to:

specify, estimate and evaluate a range of regression models and techniques in the
finance field
understand and be able to apply in a finance context
limited dependent variable models
panel data models
matched sample methods (propensity score)
Heckman sample selection methods to deal with biased estimates in the presence of
missing data
understand and apply methods of consumer and portfolio optimisation
understand and apply methods for calculating insurance premia
understand some simple applications of game theory to financial model building
Assessment
1 group assignment (approx 2,000 words) to be submitted by March/April (25%)
2-hour exam in May/June (75%)