Module overview
This module familiarises students with theories and evidence of consumer/household financial decision making. The module examines optimal and actual financial decisions by households, e.g. on borrowing and saving, and the role of financial service provision by firms and the government. The module also considers normative aspects, such as financial regulation.
Aims and Objectives
Learning Outcomes
Knowledge and Understanding
Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:
- key quantitative methods used in analysing financial choices of households
- optimal and actual financial decision-making by households
Subject Specific Intellectual and Research Skills
Having successfully completed this module you will be able to:
- apply economic methods and quantitative reasoning to address policy questions, in particular on financial regulation
Transferable and Generic Skills
Having successfully completed this module you will be able to:
- communicate complex policy arguments and quantitative reasoning in written form
Syllabus
Topics covered in this module include:
Choice under uncertainty and portfolio choice
Evidence on financial decision-making by households
Behavioural issues
Financial services
Implications for the regulation of financial services
Learning and Teaching
Teaching and learning methods
Lectures and masterclasses
| Type | Hours |
|---|---|
| Teaching | 25 |
| Independent Study | 125 |
| Total study time | 150 |
Resources & Reading list
Journal Articles
Guiso, L. and P. Sodini (2013). Household Finance: An Emerging Field. Handbook of the Economics of Finance, Volume 2B, pp. 1397-1531.
Gomes, Francisco, Michael Haliassos, and Tarun Ramadorai (2021). Hoursehold Finance. Journal of Economic Literature, 59(3), pp. 919-1000.
Assessment
Assessment strategy
Assessment on this module is through a final project (100% of the module mark), supported by continuous formative assessment in the form of problem sets and a group coursework assignment. This is the same for internal and external repeat, and for referral.
Formative
This is how we’ll give you feedback as you are learning. It is not a formal test or exam.
Coursework assignment(s)
- Assessment Type: Formative
- Feedback: Individual feedback and disucssion in class.
- Final Assessment: No
- Group Work: Yes
Summative
This is how we’ll formally assess what you have learned in this module.
| Method | Percentage contribution |
|---|---|
| Research project | 100% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
| Method | Percentage contribution |
|---|---|
| Research project | 100% |
Repeat
An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.
| Method | Percentage contribution |
|---|---|
| Research project | 100% |
Repeat Information
Repeat type: Internal & External