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Students who choose to study abroad in London at the internationally renowned LSE summer school will have access to an extensive range of course in such fields as accounting and finance, economics, international studies, law, and management, taught by the same leading LSE faculty who lead the academic year programs.

What's Included?

Highlights

Pre Departure Services

Advising

APIConnect Platform

Orientation Materials and Resources

Access to International Phone Plans

API Alumni Network

Social Networking

Scholarships

On Site Services

Airport Reception

On-Site Orientation

Housing

Tuition

Medical and Life Insurance

Excursions

Resident Directors

Social and Cultural Activities

Welcome and Farewell Group Meals

Re-Entry Services

Re-Entry Materials and Support

Post-Program Evaluation

Transcript

Alumni Network and API Ambassador Program

View all opportunities and amenities

Application Requirements

  • Minimum 3.0 G.P.A. (students applying to 200/300 level classes may require a higher G.P.A.)
  • Open to freshmen, sophomores, juniors, and seniors
  • Completed API application
  • University Approval Form
  • One letter of recommendation
  • Official transcript
  • Entry Requirement: Valid passport and supporting documents (more information provided post-acceptance)
Session Program Dates Program Cost Application Deadline Extended Application Deadline Payment Deadline
Summer 1 Jun, 2022 - Jul, 2022 $7,980 Apr 1, 2022 Apr 15, 2022 Apr 30, 2022
Summer 1, 2 and 3 Combined Jun, 2022 - Aug, 2022 $18,150 Apr 1, 2022 Apr 15, 2022 Apr 30, 2022
Summer 1 and 2 Combined Jun, 2022 - Jul, 2022 $13,980 Apr 1, 2022 Apr 15, 2022 Apr 30, 2022
Summer 2 and 3 Combined Jul, 2022 - Aug, 2022 $13,980 Apr 10, 2022 Apr 30, 2022 Apr 30, 2021
Summer 2 Jul, 2022 - Jul, 2022 $7,980 Apr 10, 2022 Apr 30, 2022 Apr 30, 2022
Summer 3 Jul, 2022 - Aug, 2022 $7,980 Apr 30, 2022 Apr 30, 2022 May 15, 2022

Additional tuition fees apply for professional applicants, i.e. those that are not currently enrolled in a U.S. university as a full-time student.

API is offering a 25% discount on the housing fees for summer 2021 LSE programs. Contact the API office for details!

API students participate excursions designed to help familiarize them with the culture and surrounding areas of their host city and country. The following is a listing of potential excursions for API London programs. API may need to modify the excursions offered in a given term due to travel restrictions or health and safety concerns. API students will participate in one of the following excursions per term. Students participating in multiple program sessions will select 1-3 excursions determined by their length of program.

  • Brighton

    Brighton is England’s most popular coastal resort on the English Channel. In the early 19th century, George IV made Brighton his personal “playground” when he built his summer home, the Royal Pavilion, with each room lavishly and sometimes outrageously decorated in the Oriental Style. Brighton’s most well-known attraction is Palace Pier, a collection of rides, arcade games, and other amusements. Known as a place where almost anything goes, Brighton attracts artists, musicians, jet-setters, organic farmers, hipsters, and hippies side by side.

  • Windsor/Windsor Castle

    Windsor Castle is a royal residence at Windsor in the English county of Berkshire. The castle is notable for its long association with the British royal family and for its architecture. The original castle was built in the 11th century after the Norman invasion by William the Conqueror. Since the time of Henry I, it has been used by succeeding monarchs and it is the longest-occupied palace in Europe. Currently, more than five hundred people live and work in Windsor Castle. The Queen has increasingly used the castle as a royal palace as well as her weekend home. It is now often used for state banquets and to entertain guests on official visits.

  • British Seaside

    Escape the heat of London and join us for a day at the British Seaside! Depending on the weather, activities could include water sports like surfing or kayaking or a traditional lunch of fish and chips. Students will also have some free time to explore the coastline, sun themselves on the beach, play games on the pier, or go shopping in town.

  • Brighton

    Brighton is England’s most popular coastal resort on the English Channel. In the early 19th century, George IV made Brighton his personal “playground” when he built his summer home, the Royal Pavilion, with each room lavishly and sometimes outrageously decorated in the Oriental Style. Brighton’s most well-known attraction is Palace Pier, a collection of rides, arcade games, and other amusements. Known as a place where almost anything goes, Brighton attracts artists, musicians, jet-setters, organic farmers, hipsters, and hippies side by side.

  • Windsor/Windsor Castle

    Windsor Castle is a royal residence at Windsor in the English county of Berkshire. The castle is notable for its long association with the British royal family and for its architecture. The original castle was built in the 11th century after the Norman invasion by William the Conqueror. Since the time of Henry I, it has been used by succeeding monarchs and it is the longest-occupied palace in Europe. Currently, more than five hundred people live and work in Windsor Castle. The Queen has increasingly used the castle as a royal palace as well as her weekend home. It is now often used for state banquets and to entertain guests on official visits.

  • British Seaside

    Escape the heat of London and join us for a day at the British Seaside! Depending on the weather, activities could include water sports like surfing or kayaking or a traditional lunch of fish and chips. Students will also have some free time to explore the coastline, sun themselves on the beach, play games on the pier, or go shopping in town.

  • Brighton

    Brighton is England’s most popular coastal resort on the English Channel. In the early 19th century, George IV made Brighton his personal “playground” when he built his summer home, the Royal Pavilion, with each room lavishly and sometimes outrageously decorated in the Oriental Style. Brighton’s most well-known attraction is Palace Pier, a collection of rides, arcade games, and other amusements. Known as a place where almost anything goes, Brighton attracts artists, musicians, jet-setters, organic farmers, hipsters, and hippies side by side.

  • Windsor/Windsor Castle

    Windsor Castle is a royal residence at Windsor in the English county of Berkshire. The castle is notable for its long association with the British royal family and for its architecture. The original castle was built in the 11th century after the Norman invasion by William the Conqueror. Since the time of Henry I, it has been used by succeeding monarchs and it is the longest-occupied palace in Europe. Currently, more than five hundred people live and work in Windsor Castle. The Queen has increasingly used the castle as a royal palace as well as her weekend home. It is now often used for state banquets and to entertain guests on official visits.

  • British Seaside

    Escape the heat of London and join us for a day at the British Seaside! Depending on the weather, activities could include water sports like surfing or kayaking or a traditional lunch of fish and chips. Students will also have some free time to explore the coastline, sun themselves on the beach, play games on the pier, or go shopping in town.

  • Brighton

    Brighton is England’s most popular coastal resort on the English Channel. In the early 19th century, George IV made Brighton his personal “playground” when he built his summer home, the Royal Pavilion, with each room lavishly and sometimes outrageously decorated in the Oriental Style. Brighton’s most well-known attraction is Palace Pier, a collection of rides, arcade games, and other amusements. Known as a place where almost anything goes, Brighton attracts artists, musicians, jet-setters, organic farmers, hipsters, and hippies side by side.

  • Windsor/Windsor Castle

    Windsor Castle is a royal residence at Windsor in the English county of Berkshire. The castle is notable for its long association with the British royal family and for its architecture. The original castle was built in the 11th century after the Norman invasion by William the Conqueror. Since the time of Henry I, it has been used by succeeding monarchs and it is the longest-occupied palace in Europe. Currently, more than five hundred people live and work in Windsor Castle. The Queen has increasingly used the castle as a royal palace as well as her weekend home. It is now often used for state banquets and to entertain guests on official visits.

  • British Seaside

    Escape the heat of London and join us for a day at the British Seaside! Depending on the weather, activities could include water sports like surfing or kayaking or a traditional lunch of fish and chips. Students will also have some free time to explore the coastline, sun themselves on the beach, play games on the pier, or go shopping in town.

  • Brighton

    Brighton is England’s most popular coastal resort on the English Channel. In the early 19th century, George IV made Brighton his personal “playground” when he built his summer home, the Royal Pavilion, with each room lavishly and sometimes outrageously decorated in the Oriental Style. Brighton’s most well-known attraction is Palace Pier, a collection of rides, arcade games, and other amusements. Known as a place where almost anything goes, Brighton attracts artists, musicians, jet-setters, organic farmers, hipsters, and hippies side by side.

  • Windsor/Windsor Castle

    Windsor Castle is a royal residence at Windsor in the English county of Berkshire. The castle is notable for its long association with the British royal family and for its architecture. The original castle was built in the 11th century after the Norman invasion by William the Conqueror. Since the time of Henry I, it has been used by succeeding monarchs and it is the longest-occupied palace in Europe. Currently, more than five hundred people live and work in Windsor Castle. The Queen has increasingly used the castle as a royal palace as well as her weekend home. It is now often used for state banquets and to entertain guests on official visits.

  • British Seaside

    Escape the heat of London and join us for a day at the British Seaside! Depending on the weather, activities could include water sports like surfing or kayaking or a traditional lunch of fish and chips. Students will also have some free time to explore the coastline, sun themselves on the beach, play games on the pier, or go shopping in town.

  • Brighton

    Brighton is England’s most popular coastal resort on the English Channel. In the early 19th century, George IV made Brighton his personal “playground” when he built his summer home, the Royal Pavilion, with each room lavishly and sometimes outrageously decorated in the Oriental Style. Brighton’s most well-known attraction is Palace Pier, a collection of rides, arcade games, and other amusements. Known as a place where almost anything goes, Brighton attracts artists, musicians, jet-setters, organic farmers, hipsters, and hippies side by side.

  • Windsor/Windsor Castle

    Windsor Castle is a royal residence at Windsor in the English county of Berkshire. The castle is notable for its long association with the British royal family and for its architecture. The original castle was built in the 11th century after the Norman invasion by William the Conqueror. Since the time of Henry I, it has been used by succeeding monarchs and it is the longest-occupied palace in Europe. Currently, more than five hundred people live and work in Windsor Castle. The Queen has increasingly used the castle as a royal palace as well as her weekend home. It is now often used for state banquets and to entertain guests on official visits.

  • British Seaside

    Escape the heat of London and join us for a day at the British Seaside! Depending on the weather, activities could include water sports like surfing or kayaking or a traditional lunch of fish and chips. Students will also have some free time to explore the coastline, sun themselves on the beach, play games on the pier, or go shopping in town.

What You’ll Study

TOTAL CREDITS - 3 semester credits per session (up to 9 total)

Students who choose to study abroad in London at the internationally renowned LSE summer school will have access to an extensive range of course in such fields as accounting and finance, economics, international studies, law, and management, taught by the same leading LSE faculty who lead the academic year programs. It allows students an insight into the leading-edge thinking in each discipline. Courses are academically challenging and intellectually stimulating, as they are condensed versions of the courses offered during the semester. It is the largest summer school program in the U.K., with over 4,500 participants representing more than 100 countries and 6 continents. There is also a significant professional representation in the courses and students may find that they have representatives from the United Nations, the European Commission and leading international banks in their classes. The faculty are all experts in their fields and are actively involved in academic research and many act as advisors and consultants to companies and government bodies.

Students can choose from over 100 courses in the following disciplines at LSE:

  • Accounting and Finance
  • Economics
  • International Relations, Government, and Society
  • Law
  • Management

Students can participate in one, two, or three summer sessions for 3 semester credits per session (up to 9 total). All LSE summer school students are encouraged to make full use of LSE facilities. These include the LSE library (the major UK national library of social sciences), IT Services, LSE Health Centre, school cafeterias, and LSE sports facilities.

SELECTIVITY

Please note that for admission to courses that require prerequisites, it is not enough to have simply taken the prerequisite course. In most cases, students must have passed the prerequisite course with a B or higher.

ACADEMIC REFERENCE

LSE requires students to provide contact information for one academic reference (in addition to the letter of recommendation required on the standard API application). LSE will contact this referee directly if further information is required.

LSE LECTURE SERIES

All LSE summer students are eligible to attend the LSE Public Lecture Series at no additional cost. Speakers include internationally renowned professors and researchers. More information is available on-site.

TRANSCRIPTS

API students will receive a transcript from the London School of Economics upon completion of their program.

  • Bryce headshot

    Bryce Romero

    Bryce Romero will be your Program Manager and help prepare you to go abroad!

    (he/him/his)

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    Heather Lees

    Heather Lees will be your Resident Director in London and a resource for you on-site.

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    Anna McCole

    Anna McCole will be your Student Services Coordinator in England and a resource for you while you are abroad with us!

Click Here to Find Classes

COURSE OFFERINGS

CONTACT HOURS AND TEACHING METHODS

Summer school courses are full-time and normally consist of 54 contact hours over the three-week period. Their Blended Learning approach involves seminar style classes and 3 additional hours of lectures delivered on campus each week, all in socially distanced environments. This will be supported by a combination of synchronous (live) and non-synchronous (pre-recorded) lectures delivered online. Each course is worth 3 U.S. credits as indicated by the number in parentheses that follows each course listing on the following pages. Lectures are attended by all students on the course, and take place either in the morning (10 am – 1 pm) or afternoon (2 pm – 5 pm), at the same time each day. They are supplemented by small 1.5 hour classes, during the following afternoon or morning. These are an opportunity to work through problem sets or case studies or present and discuss seminar papers. In addition, students are recommended to spend 2-3 hours per day in self-guided study.

COURSE TEXTS

To obtain the optimum learning experience from the course, it is essential to attend all of the lectures and classes. It is also important to do all the course reading. LSE advises students to buy the main text(s) and use the LSE Library for supplemental reading.

Purchasing textbooks is course-dependent (some courses to not require this), but some may find it is suggested. LSE suggests that students wait until they arrive before purchasing textbooks, and some may be able to get one from the library on a first-come, first-served basis. Most courses provide a printed course pack and the majority use Moodle, which allows teachers and lecturers to post readings and other assignments so that students can access the material. Most journal articles and some chapters from course texts will be available on Moodle.

Several bookstores near the LSE campus supply textbooks for LSE students.

LEVELS AND PREREQUISITES

  • 100 LEVEL COURSES – These courses are equivalent to introductory level university courses. They have no specific prerequisites in their own subject but may require some mathematics or other related subjects. The 100 level course minimum entry requirement is that applicants must have graduated from high school and have been accepted to a college or university.
  • 200 LEVEL COURSES – These courses are equivalent to intermediate level university courses. They have prerequisites in the form of university-level introductory courses in the same, or a closely related, subject.
  • 300 LEVEL COURSES – These courses are advanced and equivalent to either final year undergraduate or first-year graduate courses. They have prerequisites of university-level intermediate courses.

Students will choose one course per session and will earn 3 U.S. semester credits per course

AC110 Principles of Accounting

Accounting has been defined as ‘the language of business’. A knowledge of the underlying concepts of accounting, in addition to its procedures, is an essential element in the education of future managers and other professionals. Topics covered will include:

  • The uses of accounting information
  • The nature and function of accounting conventions
  • The preparation of the financial statements of business entities
  • The accounting treatment of assets and liabilities
  • Cash flow statements
  • Accounting for groups
  • Financial statement analysis

Language of Instruction: English   

Recommended US semester credits: 3  

MG101 Marketing

Peter Drucker, the father of business consulting once famously remarked, “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation.” In today’s highly competitive business environment these words ring even truer: a well-designed marketing strategy can make all the difference between success and failure in the marketplace.

Marketing, ultimately, is about understanding and shaping behavior. Accordingly, banks and other financial institutions, as well as governmental, medical, and not-for-profit organizations–from those that design and sell financial products, to those that implement public policy (e.g., those dedicated to reducing drunk driving, increasing literacy, and encouraging safe contraception), have all found that a well-thought-out marketing strategy can be a critical arbiter of success even in this “ideas marketplace.”

Topics covered include:

  • Introduction to marketing and marketing frameworks
  • Consumer behavior
  • Marketing research (quantitative and qualitative approaches)
  • Segmentation, targeting & positioning strategies
  • New and existing products
  • Distribution decisions
  • Pricing decisions and strategies
  • Promotion, advertising and communication strategies
  • Business and industrial marketing
  • International marketing

This course will combine LSE’s premier standing in the social sciences with cutting-edge management practices. By using a wide range of quantitative as well as qualitative methods, interactive lectures, videos, hands-on exercises, and case studies, students will develop an understanding of key analytical frameworks and tools that are essential to a good marketing strategy.

Language of Instruction: English   

Recommended US semester credits: 3  

MG133 Foundations of Management

This course examines management from a range of perspectives, including economics, sociology and psychology. Students explore, through lectures and classes, major issues faced by contemporary organisations and managers.

Its content is as wide-ranging as strategy formulation, people management, culture, globalisation, innovation and leadership and is designed to appeal to students from a range of backgrounds who may be studying business or management for the first time.

Teaching will be organised around daily interactive lectures and seminars. Through engaging in-class activities participants will develop their understanding of management as well as their management skills by applying learned theories to a range of interesting scenarios and problems.

Language of Instruction: English   

Recommended US semester credits: 3  

MG209 Bargaining and Negotiation: Interests, Information, Strategy, and Power

Negotiating skills are crucial to both our professional and personal lives. People negotiate every day about issues as important as employment contracts and as trivial as which film to see with a friend. Although some level of natural ability is important, like any other skill, one’s ability to perform in negotiation is also determined by one’s formal training and experience/practice.

Note: This course is for beginners who have minimal previous experience in negotiation and have not taken any courses in negotiation. If you are already familiar with negotiation and negotiation theory, please consider taking MG300 instead.

MG209 will develop students’ skills through both formal training and practice. Specifically, this course will introduce students to the strategic, psychological, and cultural aspects of negotiations as well as practical tips gleaned from negotiation research.

This intensive three-week course covers;

  • Distributive negotiation
  • Preparing for a negotiation
  • Integrative negotiation
  • Negotiation styles
  • Ethics, trust, and building a relationship
  • Communication in negotiations: Verbal, nonverbal, and computer-mediated
  • Emotions in negotiations
  • Power and Influence
  • Creativity and problem solving
  • Culture in negotiations
  • Behaviors of skilled negotiators

Language of Instruction: English   

Recommended US semester credits: 3  

EC101 Introductory Microeconomics

This course seeks to introduce microeconomic analysis as a way of understanding the world. It exposes students to standard microeconomic theory with a focus on the development of economic intuition, whilst also providing certain economic tools that support this intuition along the way. The microeconomic mind-set helps students thinking about issues that are relevant empirically and for policy.

Topics covered will include:

  • Consumer behavior
  • Theory of the firm
  • Competitive market equilibrium
  • Monopoly
  • Factor markets
  • General equilibrium theory
  • Welfare economics

Course Outcomes

One of the key outcomes of this course will be discovering when abstract models are useful and when they are not. Students will participate in class-based exercises that will enhance their understanding of these models through active engagement, rather than just passive reading or listening.

The course is aimed primarily at those who have not previously studied economics. It provides a foundation for further study in economics but is sufficiently self-contained to provide grounding for those who do not intend to take the subject any further.

Language of Instruction: English   

Recommended US semester credits: 3  

EC201 Intermediate Microeconomics

The aim of this course is to give students the conceptual basis and the necessary tools for understanding modern microeconomics at an intermediate level. This course makes extensive use of calculus.

The course covers six broad areas:

  • Consumer theory
  • The theory of the firm
  • General equilibrium and welfare
  • Game theory
  • Oligopolistic markets
  • Information economics

The theory of the consumer explores the demand side, while the theory of the firm discusses the supply side of the economy. General equilibrium puts the two parts together and discusses welfare implications, including in the presence of externalities.

The second part of the course introduces basic concepts in non-cooperative game theory, emphasizing the strategic aspect of economic interaction. Game theory is then applied to analyze informational problems in economics, in particular problems of hidden information (adverse selection) and hidden action (moral hazard).

As a working knowledge of differential calculus is essential for the study of quantitative solutions to an economic problem, it is a pre-requisite for the course. In class on the first day of the course, partial differential calculus will be reviewed and students will be introduced to the techniques of constrained maximization, such as Lagrangian procedures, used throughout.

Language of Instruction: English   

Recommended US semester credits: 3  

EC204 Financial Markets and the Global Economy: the History of Bubbles, Crashes, and Inflations

This course introduces students to the long run evolution of financial markets and to the history of monetary policy and financial crises. The course covers the two waves of the financial globalization of 1880-1914 and 1980-2008 and the de-globalization of finance that happened during the Great Depression.

A long run perspective on the 2008 financial crisis and Eurozone crisis will be provided through several historical case studies of stock market crashes, banking panics, currency crises and sovereign defaults. Finally, the course explores how central banks responded to financial crises in different historical periods and covers the main evolutions in monetary policy over the last two hundred years.

The topics covered will include:

  • Stock market integration and stock market crashes before 1800
  • The gold standard and financial globalization before WW1
  • Banking panics under the classical gold standard and the monetary policy response
  • WW1 financial instability, hyperinflation and the reconstruction of the gold standard in the 1920s
  • Monetary policy and the Great Depression of the 1930s
  • The 1929 stock market crash and 1931 global financial crisis
  • Banking panics in the United States during the 1930s
  • The evolution of monetary policy since WW2
  • Financial crises in Latin America in 1980-2001
  • The East Asian financial crisis of 1997/1998
  • The 2008 subprime crisis in historical perspective
  • The 2008-2012 Eurozone crisis in historical perspectiveThe course puts a strong emphasis on how institutional and political factors shape the process of financial globalization and on how the structure of the international monetary system affects the conduct of monetary policy and the response to financial crises.

Course outcomes

This course is aimed at students willing to improve their understanding of money and financial markets through a historical approach. It is also highly relevant to financial market practitioners and policymakers interested in acquiring a long-run perspective on current hot issues in money, banking, and finance.

Language of Instruction: English   

Recommended US semester credits: 3  

EC307 Development Economics

In a world composed of similar people, why is it that we live in relative comfort while about 1.4 billion people live on less than $1 a day? And, more importantly, what can be done about it?

This course will use all the skills students have developed as an economist to try and answer important economic questions. Providing an answer is hard because solving the problem of world poverty is not as simple as reallocating income. It would take $511 billion a year to increase the incomes of the poorest to just $2 a day, but calculated in 2003 the G7 countries aspire to give (but do not quite) just $142 billion a year in aid.

In short, solving world poverty requires finding places where an intervention can generate more in income than it costs. Fortunately, the economic theory that students already know tells us how to find such places. The economic model that students have learned says that if some conditions (X) are met then nothing can be done about poverty without making other people worse off. But we can flip this conclusion on its head: if X is not true, then it is possible to make someone better off without making anyone worse off, and the theory tells us how – make the world more like X. Making progress on poverty means finding out where X does not hold – i.e. where do markets fail?

The course then is detective work. Theory tells us when markets will fail and we use econometrics analysis to find these places in the real world. Finally, the course uses rigorous impact evaluation to find out whether the intervention implied by theory works. The course will teach students all the tools they need to apply this thinking, and it is the goal that students will use it to make a difference in the developing world.

Topics covered include:

  • The Neo-classical Model and Convergence of Income
  • Coordination and Persistent Poverty
  • Credit, Inequality in the Divergence of Incomes
  • The Psychology of Poverty
  • Health and Nutrition
  • The Role of Institutions in Development
  • Political Economy and Corruption
  • Property Rights and Investment Incentives
  • International Aid and Economic Growth
  • Microfinance
  • Credit, Saving, and Insurance
  • Land Redistribution
  • Role of Media and Policy in Development
  • Social Networks and Social Capital
  • Role Regulation in Development
  • Intrahousehold Allocations and Gender
  • Technology Adoption and Learning

Language of Instruction: English   

Recommended US semester credits: 3  

EC351 International Economics

This course provides an analysis of the economic relationships between countries, covering both trade and monetary issues.

The course is split into two parts:

International macroeconomic issues

This part of the course starts out with an overview of the balance of payment accounts and open economy income identities. It then focuses on some of the key questions in open economy macroeconomics such as:

  • How are nominal exchange rates determined?
  • What does it mean for a currency to be overvalued or undervalued?
  • Why do countries run large current account surpluses or deficits? Are such external imbalances sustainable?
  • Why do some fixed exchange rate regimes fail and end in a currency crisis?
  • What are the benefits and costs of a common currency?

International trade theory and policy

This part of the course addresses some of the classic questions of international trade theory such as:

  • Who trades what with whom?
  • What are the effects of trade on welfare and the income distribution?
  • What are the effects of barriers to trade and economic integration?

This course looks both at the answers of classical and new trade theory to these questions. The first part ends with an overview of recent theoretical and empirical research on the role of heterogeneous firms in international trade.

Language of Instruction: English   

Recommended US semester credits: 3  

FM230 Alternative Investments

In the era of significant market turmoil institutional, as well as individual, investors look beyond traditional investment vehicles such as bonds and shares. For example, the price of gold substantially increased in 2009. The purpose of this course is to explore the world of alternative investments such as investments in hedge funds, private equity/venture capital funds, real estate, and commodities, either directly or through funds of funds. This course will combine theory with empirical exercises, allowing students to get a “hands-on” experience. Students will want to see what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

Topics will include:

  • Overview of Alternative Assets
  • Hedge Funds
    • A Hedge Fund Investment Program
    • Due Diligence
    • Risk Management
    • Regulation
    • Funds of Funds
  • Commodities and Managed Futures
    • Investing in Commodity Futures
    • Managed Futures
  • Venture Capital (VC)
    • Raising Funds
    • Valuation of Investments
    • Initial Public Offerings (IPOs)
  • Leveraged Buyouts (LBOs)
    • Financing and Leverage
    • LBO valuation
    • Value Added
    • Exit Strategies
  • Real Estate
    • Real Estate and an Investment Asset
    • Valuation
    • Securitization and Mortgage Backed Securities (MBSs)’
    • Real Estate Investment Trusts (REITs)
    • Demographics

There will also be guest lectures by practitioners from the hedge fund and private equity industries.

The course will combine theory with empirical exercises, allowing students to get a hands-on experience. The course want to identify what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

As part of class work, students will be encouraged to work with data (in Excel). Particular data work will include measuring the risks of investment portfolios, calculating the alphas of hedge fund strategies, evaluating an LBO deal, evaluating a VC deal and pricing an MBS.

Language of Instruction: English   

Recommended US semester credits: 3  

FM250 Finance

This intensive course is designed to deliver a greater understanding of asset markets and corporate finance.

Part 1: Asset-markets

This section offers a unified perspective of modern valuation methods in the context of three important asset classes – fixed income, stocks, and derivatives. The course will then proceed to fixed-income securities, before moving onto stocks, starting with basic notions of risk, return, diversification, and portfolio theory. Capital asset pricing model (CAPM) will be discussed, before examining whether the market values stocks efficiently, or whether there are “abnormal” returns leading to large profits.

Part 2: Corporate Finance

These questions addressed in this part of the course can be divided into two broad sets.

Decisions regarding how to spend funds on alternative investment projects (also known as capital budgeting). Here the course will describe the alternative techniques commonly employed to assess investment opportunities.

How to raise the funds necessary to finance those investments. Firms’ decisions over debt/equity ratios will be analyzed here. This analysis will then be broadened to allow for the possibility that debt/equity choices may affect how firms are run. Incentives to adopt riskier strategies as a function of overall leverage will be considered, as will the debt overhang problem.

In general, the topics covered will include:

  • Net Present Value technique
  • Introduction to portfolio theory
  • The Capital Asset Pricing Model (CAPM)
  • Stock market efficiency
  • Forward and futures contracts, option pricing
  • Investment decisions and the significance of real options
  • Capital structure and dividend decisions
  • Capital restructuring: Initial Public Offerings

Course Outcomes

Students will learn about the theory and application of Financial Securities and Corporate Finance. The course broadly covers financial instruments, such as equity and fixed income and derivative securities, as well as key concepts in Corporate Finance. It will also enhance a student’s understanding of how firms choose their capital structure, conflicts between shareholders and debt holders, payout policy, and initial public offerings.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

IR115 Culture and Globalization

Globalisation is one of the most important dynamics of contemporary social life. The world is increasingly interconnected, and some pundits even talk of living in a ‘global village’. But what does globalization really entail? And what are the cultural forces that shape it? This course explores these key questions, largely from the vantage point of anthropology—the social science that has done the most to help us understand a culture. The course begins by considering the relationship between the culture concept and globalization since it is so often a concern with a culture that animates the debates about globalization. Is a ‘clash of civilizations’ inevitable in our globalized world? Does the emergence of a ‘global village’ spell the end of cultural difference?

As an introductory course, students need not have a background in anthropology. After considering the basic tenets of the culture concept in relation to globalisation, the lectures move on to consider a number of related topics, including economic development and transnational corporations; the influence of globalisation on tourism; the role of cultural knowledge in the ‘global war on terror’; human rights; cultural identity in a geopolitical perspective; and global media networks. There will also be a lecture on the London 2012 Olympics and globalization.

Readings for the course are organized around a set of important anthropological pieces, but also include perspectives from sociology, political science, media studies, and journalism. The readings are complemented by interactive on-line exercises as well as the discussion and analysis of the film, news clips, and other media sources. The class also takes a field trip to Tower Hamlets in London, to the areas around Brick Lane, to complement readings on migration.

Language of Instruction: English   

Recommended US semester credits: 3  

IR209 International Political Economy

This course will introduce students to the contemporary study of international political economy, or how politics and economics interact at the global, regional and national levels. The course will highlight the major analytical frameworks in the field of IPE and how these can be applied to empirical questions concerning the structure of the global political economy, the sources and implications of globalization, the nature of international economic institutions, and national economic policy choices.

In the empirical topics, students will cover a mixture of historical and contemporary issues, including:

  • European Monetary Union;
  • Trade policies and economic development;
  • Globalization of Capital Markets;
  • Financial Crises;
  • Global economic governance;
  • The politics of global imbalances.

Each of the twelve daily sessions for the course will consist of a lecture, followed by a seminar discussion.

Language of Instruction: English   

Recommended US semester credits: 3  

IR245 International Journalism and Society - The Role of the Media in the Modern World

This course is suitable for professionals and activists working in journalism or media-related fields as well as students from all backgrounds. Participants should have studied at least one introductory course in either political science, international relations, sociology, economics or media and communications.

This course is a unique opportunity to benefit from the LSE’s outstanding research into modern journalism combined with talks by pioneering media professionals. It is taught by leading academics, including Professor Charlie Beckett who was an award-winning senior journalist with the BBC and who runs the LSE’s international journalism think-tank, Polis. Every day there will a lecture by a senior academic who teaches the LSE’s post-graduate media and communications courses. There will also be a daily guest talk by a leading media practitioner giving students insights into contemporary cutting-edge news media. The seminars will encourage students to think and act like a journalist facing all the dramatic ethical and technological challenges of reporting the complex and dangerous world we live in.

We live in a world where information is an increasingly critical resource. The news media play a crucial role in the production and dissemination of that information. From Twitter to the New York Times, from Al Jazeera to Facebook, journalism is having an impact on our personal and political lives, and so it is vital to understand their role in the modern world.

Participants in this course will emerge with a better understanding of the shifts taking place in the practices, forms, and processes within the news media and their consequences for the role of journalism in contemporary society.

Language of Instruction: English   

Recommended US semester credits: 3  

LL102 Introduction to International Human Rights: Theory, Law, and Practice

This course involves critical exploration of what is meant by human rights. It will investigate the possibility that the international human rights movement, together with the law that underpins it, can provide a universal ethical and legal order. There are three main areas of focus;

Theories and Histories of Human Rights

The course begins with an introductory account of the general idea of human rights and of the history of the idea from ancient Greek origins and the Enlightenment to contemporary understandings. Students will be exposed to several enduring human rights critiques and, through a series of case-studies, examine the tensions that the practice of human rights today highlights, such as in the areas of free speech, prohibiting torture, and countering terrorism.

Structures and Standards

The course then turns to assessing the structure and standards that govern international human rights law, beginning with an introduction as to what modern international law is and how it is made. This part of the course will consider the international and regional human rights systems and the range of legal instruments and standards that have been developed.

Key issues in Human Rights

Finally, this intensive course will study selected key issues in international human rights law such as:

  • The right to freedom from torture and inhuman or degrading treatment (including the use of torture in so-called “ticking bomb” scenarios)
  • Freedom of expression (including the protection awarded to expression that is offensive to religious feelings, holocaust denial, and hate speech)
  • Life and death (including the issue of abortion and assisted suicide)
  • Global warming and environmental protection.

Course outcomes

The intended learning outcome is an informed and critical understanding of contemporary international human rights theory, law and practice.

Language of Instruction: English   

Recommended US semester credits: 3  

LL105 International Law: Contemporary Issues

The overall purpose of the course is to engage students in international affairs through the study of the legal frameworks which govern them, while at the same time situating that legal framework within the material and cultural conditions of international politics.

The course will cover a selection of contemporary issues drawn from the following issue areas:

  • The protection of the global environment
  • Possibilities and challenges of global economic integration
  • The use of force in international politics
  • The promotion and protection of human rights
  • International criminal law
  • The laws of war (international humanitarian law)
  • The right of colonized and other subjugated or oppressed peoples to self-determination.

The course is not restricted to those with a background in law and typically draws students with an interest in international relations, global politics, and global economic relations, as well as law. However, a familiarity with legal terminology is an advantage.

Course outcomes

Students will be given a solid grounding in the foundations of the international legal order. However, the course will be problem-based, rather than doctrinal, and will focus on controversial and challenging issues in contemporary international politics – including the recent examples of the use of force, international economic integration, international criminal law and the promotion and protection of human rights.

Language of Instruction: English   

Recommended US semester credits: 3  

ME116 Essential Statistics for Economics and Econometrics

This is an introductory course on probability and statistics, with examples to demonstrate their applications in the social and natural sciences.

There will be a strong emphasis on the fundamental concepts of probability theory, random variables and their distributions, sampling theory, statistical inference, and linear regression. Inferential techniques such as estimation, hypothesis testing, and regression analysis are important in the fitting and interpretation of statistical models. We will explore the mathematical background of these concepts and techniques, and demonstrate their use through practical examples and interactive experiments.

The course should be of value to anyone intending to pursue further study in statistics or any other field involving the analysis of data.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

ME200 Computational Methods in Financial Mathematics

Derivative pricing, investment decisions, and financial risk management rely on stochastic models describing financial markets. In these models, quantities of interest such as the price of a financial product often need to be approximated using computational methods. This is a hands-on course in which such methods are introduced and implemented. A particular focus of the course is on Monte Carlo methods, i.e., simulation methods to approximate integrals and expectations of random variables.

Based on the binomial tree model, the fundamental ideas underlying the theory of risk-neutral pricing are introduced. In this context, expressions of options prices as suitable expectations of random variables are derived. It is then shown how these expectations can be evaluated using computational methods.

The course also develops the students’ computational skills. Indeed, each time a new computational method is introduced, students implement and apply it to relevant examples during supervised programming sessions. To enable students to do this, the course contains an introduction to programming in R and its applications in financial mathematics.

The course is largely self-contained and reviews the necessary mathematical concepts. No prior programming experience is expected.

Language of Instruction: English   

Recommended US semester credits: 3  

ME314 Introduction to Data Science and Big Data Analysis

Data Science and Big Data Analytics are exciting new areas that combine scientific inquiry, statistical knowledge, substantive expertise, and computer programming. One of the main challenges for businesses and policymakers when using big data is to find people with the appropriate skills. Good data science requires experts that combine substantive knowledge with data analytical skills, which makes it a prime area for social scientists with an interest in quantitative methods.

This course integrates prior training in quantitative methods (statistics) and coding with substantive expertise and introduces the fundamental concepts and techniques of Data Science and Big Data Analytics.

Typical students will be advanced undergraduate and postgraduate students from any field requiring the fundamentals of data science or working with typically large datasets and databases. Practitioners from industry, government, or research organizations with some basic training in quantitative analysis or computer programming are also welcome. Because this course surveys diverse techniques and methods, it makes an ideal foundation for more advanced or more specific training. Our applications are drawn from social, political, economic, legal, and business and marketing fields.

Language of Instruction: English   

Recommended US semester credits: 3  

AC101: Managerial Accounting and Financial Control

This course analyses perspectives and techniques in accounting and financial control and considers how they are used by modern enterprises to effectively manage in competitive business environments. Its focus is on managerial decision making and the use of accounting and financial management tools under varying strategic and operational market conditions.

The course also looks at performance-based strategic management and accounting issues and considers aspects of international financial management.

Language of Instruction: English   

Course Link

Recommended US semester credits: 3  

AC110 Principles of Accounting

Accounting has been defined as ‘the language of business’. A knowledge of the underlying concepts of accounting, in addition to its procedures, is an essential element in the education of future managers and other professionals. Topics covered will include:

  • The uses of accounting information
  • The nature and function of accounting conventions
  • The preparation of the financial statements of business entities
  • The accounting treatment of assets and liabilities
  • Cash flow statements
  • Accounting for groups
  • Financial statement analysis

Language of Instruction: English   

Recommended US semester credits: 3  

AC215 Business Analysis and Valuation

This course introduces the valuation techniques used by analysts – in corporate finance, equity research, fund management, and strategy consulting – in order to value stocks and firms. It shows how to use financial statements, and more generally business analysis, in order to generate expectations of future performance. It furthermore shows how the value of a stock or a firm in an efficient market reflects expectations of future performance.

More specifically, this course introduces a framework for business analysis and valuation using publicly available information, such as the information contained in financial statements, in order to develop an in-depth analysis of a firm and extract its fundamental value. Much of the course’s emphasis is on case studies.

The framework covers key analysis components such as:

  • business strategy analysis;
  • accounting analysis;
  • financial analysis;
  • prospective analysis.
  • The framework is then applied to a variety of contexts including:
    • valuation;
    • evaluation of mergers and acquisitions.

Each of the topics introduced in this course covers both institutional details and results of relevant academic research. It is furthermore supported by a case study. This course should hence appeal to students interested in corporate finance, equity research, fund management, and strategy consulting.

Language of Instruction: English   

Recommended US semester credits: 3  

EC101 Introductory Microeconomics

This course seeks to introduce microeconomic analysis as a way of understanding the world. It exposes students to standard microeconomic theory with a focus on the development of economic intuition, whilst also providing certain economic tools that support this intuition along the way. The microeconomic mind-set helps students thinking about issues that are relevant empirically and for policy.

Topics covered will include:

  • Consumer behavior
  • Theory of the firm
  • Competitive market equilibrium
  • Monopoly
  • Factor markets
  • General equilibrium theory
  • Welfare economics

Course Outcomes

One of the key outcomes of this course will be discovering when abstract models are useful and when they are not. Students will participate in class-based exercises that will enhance their understanding of these models through active engagement, rather than just passive reading or listening.

The course is aimed primarily at those who have not previously studied economics. It provides a foundation for further study in economics but is sufficiently self-contained to provide grounding for those who do not intend to take the subject any further.

Language of Instruction: English   

Recommended US semester credits: 3  

EC102 Introductory Macroeconomics

This course takes both a short and a long-term view of the economy and aims to help students understand recent developments in macroeconomics using graphic analysis and simple algebra.

It focuses on the stylized facts of business cycle fluctuations, economic growth, and unemployment; discusses what light modern macroeconomics can shed on these facts; and finally evaluates the scope for policy to improve macroeconomic performance.

This first part of the course introduces the building blocks of the macroeconomy and provides an overview of the performance of the economy in the long-run. Topics focus on the determination of national income, the determinants of long-term economic growth, inflation and unemployment and economic pathologies such as persistent unemployment and hyperinflation

Topics list:

  • General equilibrium
  • Money and inflation
  • Labour markets and unemployment
  • Economic growth
  • The open economy

An overview of the behavior of economy in the short term. This part of the course reviews business cycle fluctuations, the design and effects of monetary and fiscal policy, budget deficits and government debt and the open economy.

Topics list:

  • Economic fluctuations and stabilization policy
  • The evolution of stabilization policy
  • Government debt
  • Financial intermediation
  • The credit crunch

The course will conclude with a review of the European Monetary Union and the Euro Crisis, and the Great Recession.

Language of Instruction: English   

Recommended US semester credits: 3  

EC104 The Wealth (and Poverty) of Nations: Historical and Economic Divergence across the Globe

This course considers the most important questions in economic history: How have modern societies become so rich? How has humanity shifted from a centuries-long state in which lives were brutish and short, to a situation today where people live significantly longer and are much better off? Yet, still, why are some countries rich and others poor? Why has this been the case in history, and why is it the case today?

Often, answers to these questions begin with the Industrial Revolution, but recent work across the social sciences makes it increasingly clear that the important antecedents are found further in the past. The course takes students from the Neolithic Revolution to the present day. It will focus on the deep roots of divergence, considering economic and social structures before industrialization, exploring arguments about how and why living standards and economic performance have improved markedly, while at the same time, looking at how development has diverged between different societies and across societies at the same point in time. It endeavours not just to describe these processes, but also to suggest and consider explanations for them.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

EC200 Introduction to Behavior Economics

This course will provide students with a clear introduction to the principles and methods of Behavioural Economics. Behavioral economics considers the ways that people are more social, more impulsive, less adept at using information, and more susceptible to psychological biases than the standard economic models assume. Students will explore key departures, and the consequences for individuals, firms, and policy.

Language of Instruction: English   

Recommended US semester credits: 3  

EC201 Intermediate Microeconomics

The aim of this course is to give students the conceptual basis and the necessary tools for understanding modern microeconomics at an intermediate level. This course makes extensive use of calculus.

The course covers six broad areas:

  • Consumer theory
  • The theory of the firm
  • General equilibrium and welfare
  • Game theory
  • Oligopolistic markets
  • Information economics

The theory of the consumer explores the demand side, while the theory of the firm discusses the supply side of the economy. General equilibrium puts the two parts together and discusses welfare implications, including in the presence of externalities.

The second part of the course introduces basic concepts in non-cooperative game theory, emphasizing the strategic aspect of economic interaction. Game theory is then applied to analyze informational problems in economics, in particular problems of hidden information (adverse selection) and hidden action (moral hazard).

As a working knowledge of differential calculus is essential for the study of quantitative solutions to an economic problem, it is a pre-requisite for the course. In class on the first day of the course, partial differential calculus will be reviewed and students will be introduced to the techniques of constrained maximization, such as Lagrangian procedures, used throughout.

Language of Instruction: English   

Recommended US semester credits: 3  

EC202 Intermediate Macroeconomics

In recent times, macroeconomic questions have once again surged to the forefront of public attention and debate.

This course aims to bring students up-to-date with modern developments in macroeconomic theory and offer fresh perspectives on the macroeconomic challenges of the day.

It is essentially structured around a series of key questions:

  • What are the forces that drive long-term prosperity?
  • Why does economic activity fluctuate?
  • Can and should policymakers seek to ameliorate business cycles?
  • What are the features of financial markets and labor markets that make them special, and how do they interact with the rest of the economy?
  • What is the role of banks and why are they inherently fragile?
  • How should households and firms plan for an uncertain future?
  • What are the implications of increasing globalization of trade and finance for the economy?
  • How should central banks conduct monetary policy?

The approach of this course is to discuss the salient features of the data and then go on to present macroeconomic models to study these issues.

Topics covered include:

  • Macroeconomic measurement and data
  • Labour markets and unemployment
  • Economic growth
  • Consumption and saving
  • Investment
  • Money and banking
  • Business cycles
  • Monetary and fiscal policy
  • International Macroeconomics

Language of Instruction: English   

Recommended US semester credits: 3  

EC204 Financial Markets and the Global Economy: the History of Bubbles, Crashes, and Inflations

This course introduces students to the long run evolution of financial markets and to the history of monetary policy and financial crises. The course covers the two waves of the financial globalization of 1880-1914 and 1980-2008 and the de-globalization of finance that happened during the Great Depression.

A long run perspective on the 2008 financial crisis and Eurozone crisis will be provided through several historical case studies of stock market crashes, banking panics, currency crises and sovereign defaults. Finally, the course explores how central banks responded to financial crises in different historical periods and covers the main evolutions in monetary policy over the last two hundred years.

The topics covered will include:

  • Stock market integration and stock market crashes before 1800
  • The gold standard and financial globalization before WW1
  • Banking panics under the classical gold standard and the monetary policy response
  • WW1 financial instability, hyperinflation and the reconstruction of the gold standard in the 1920s
  • Monetary policy and the Great Depression of the 1930s
  • The 1929 stock market crash and 1931 global financial crisis
  • Banking panics in the United States during the 1930s
  • The evolution of monetary policy since WW2
  • Financial crises in Latin America in 1980-2001
  • The East Asian financial crisis of 1997/1998
  • The 2008 subprime crisis in historical perspective
  • The 2008-2012 Eurozone crisis in historical perspectiveThe course puts a strong emphasis on how institutional and political factors shape the process of financial globalization and on how the structure of the international monetary system affects the conduct of monetary policy and the response to financial crises.

Course outcomes

This course is aimed at students willing to improve their understanding of money and financial markets through a historical approach. It is also highly relevant to financial market practitioners and policymakers interested in acquiring a long-run perspective on current hot issues in money, banking, and finance.

Language of Instruction: English   

Recommended US semester credits: 3  

EC212 Introduction to Econometrics

Everyone agrees that evidence-based policy is likely to be more constructive and effective than that based on dogma or fancy. The problem, for those concerned with social or economic policy, is that we seldom have the luxury of being able to undertake controlled experiments of the type conducted by natural scientists. Instead, we have to draw our inferences from the analysis of non-experimental data, and that is the function of econometrics.

This introductory course is intended to serve two constituencies:

  • Professionals: Each year the course is attended by many professionals who have found that the acquisition of econometric skills would be valuable in their work. Included in this category are Ph.D. students, typically in disciplines other than economics, who are including a serious empirical component in their dissertations.
  • Undergraduate students: Many participants are college students from other universities. Those from the US ought to be able to negotiate credit worth at least one semester since the teaching is at the same standard as that for EC220, the regular-year LSE course taken by economics majors, and the course is distinctly more ambitious in both coverage and depth than the typical one-semester introductory econometrics course in the US.

The course is divided into two parts:

Part 1. The first part of this course introduces the statistical tool known as regression analysis applied to cross-sectional data. It begins with the use and properties of the classical linear regression model and then discusses how various technical problems should be handled. Initially, ordinary least squares are the standard technique, but eventually the focus shifts to instrumental variables estimation.

Part 2. The second part of the course discusses the application of the regression model to time series data.

Topics covered include:

  • Simple Regression Analysis
  • Properties of Regression Coefficients and Hypothesis Testing
  • Multiple Regression Analysis
  • Transformation of Variables
  • Specification of Regression Variables
  • Heteroscedasticity
  • Stochastic Regressors and Measurement Errors
  • Simultaneous Equations Estimation
  • Modelling Dynamic Processes
  • Autocorrelation
  • Logit and Probit (binary choice models)

Analytical depth: The material gives emphasis to the analysis of the finite sample and asymptotic properties of least squares and instrumental variables estimators, and the accompanying implications for statistical inference, under different assumptions concerning the data generation process. The derivation of asymptotic results is coupled with the use of simulation methods to establish finite-sample properties. The course contains many proofs in simple contexts.

Mathematical content: The course uses college algebra supplemented by the differential calculus at a basic undergraduate level when it is appropriate and useful. It does not use matrix algebra.

Hands-on: Examples of simple applications in economics are used throughout. Participants use Stata to fit educational attainment and wage equation models with cross-sectional data and EViews to fit demand functions with time series data. Technical support is provided.

Intuitive understanding: In addition to its technical content, the course emphasizes the development of intuitive understanding. The aim is that participants should at all times understand why the material is useful and necessary.

Course Outcomes

The objective of this course is to provide the basic knowledge of econometrics that is essential equipment for any serious economist or social scientist, to a level where the participant would be competent to continue with the study of the subject in a graduate programme.

While the course is ambitious in terms of its coverage of technical topics, equal importance is attached to the development of an intuitive understanding of the material that will allow these skills to be utilized effectively and creatively, and to give participants the foundation for understanding specialized applications through self-study with confidence when needed.

Language of Instruction: English   

Recommended US semester credits: 3  

EC235 Economics of European Integration

This course introduces the main economic aspects of the current development of the European Union (EU) and its policies. The course covers the process of European Integration and its economic impacts on individuals, firms, and regions. Special attention will be devoted to the analysis of the economic opportunities and challenges generated by economic integration, and to the assessment of the policies designed to support this process and mitigate its potential side-effects.

The topics covered will include:

  • The early phase of the EU: trade integration
  • The Single European Act (SEA) and the effects of free movement of persons, capital, goods, and services within the EU
  • Innovation and technological development in the EU
  • The geography of EU income and unemployment disparities: comparing the EU with the US, China, and India
  • How the EU promotes growth and employment: Europe 2020 and Smart Growth Agenda
  • Opportunities and challenges for Multinational Firms in the EU market
  • The Common Agricultural Policy (CAP) and its evolution
  • The EU Regional Policy and its future for the 2014/2020 period
  • EU enlargement, EU Neighbouring Countries, and migration
  • The theory of Optimal Currency Areas (OCA): is the EU an OCA?
  • The European Monetary Union (EMU)
  • Monetary policy in the EU and the Euro
  • European social policy and labor markets
  • Facts and ideas about the ongoing economic crisis

The course will touch on the institutional, political and historical background of European integration, though its main focus is on the economic analysis of the policies and prospects for the European Union. Some recent hot topics in the international policy agenda like rising public debt and the euro crisis will also be covered.

Course outcomes

This course is highly relevant to students and scholars interested in expanding their knowledge of the EU and its economics, but also to policymakers and executives wanting to know more about the opportunities offered by the EU, its markets, and institutions.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

EC240 Environmental Economics & Sustainable Development

Environmental economics is a comparatively young, but by now well-established, branch of economic study. In successfully applying standard microeconomic analysis to the field of the natural environment and sustainable development, economists have challenged many erroneous, but strongly held preconceptions of policy makers and environmentalists alike. For example, the course will show that the efficient level of environmental pollution is, in general, not zero and that there is no risk of running out of fossil fuel non-renewable resources anytime soon.

Conversely, however, policymakers fail to understand the fundamental drivers behind renewable resource extinction (particularly species loss), are over-optimistic when it comes to the environmental consequences of economic growth and insufficiently grasp the obstacles toward achieving strong multilateral agreements for solving international and global environmental problems.

The topics covered will include:

  • Environmental externalities and the theory of market failure
  • Economics of pollution control (the efficient level of environmental pollution, taxes, tradable permits, command-and-control)
  • Economics of natural resource use (non-renewable resources such as oil, gas, and metals as well as renewable resources such as fish and forests)
  • Economics of sustainable development (including the measurement of sustainable development and the effect of economic growth on the environment)
  • Valuation of environmental resources (including cost-benefit analysis)
  • Economics of international environmental problems (including the impact of trade and investment liberalization on the environment)
  • Economics of climate change (including the analytical controversy among environmental economists and a focus on the Kyoto Protocol as the only global agreement on reducing greenhouse gas emissions).

Course Outcomes

This course aims to provide students with a sound knowledge and understanding of the major results of environmental economics. Its intention is to deliver the fundamentals of rigorous economic analysis for continued undergraduate studies at a higher level, or graduate studies in environmental economics.

Language of Instruction: English   

Recommended US semester credits: 3  

EC270 Public Finance

This course provides a broad, up-to-date introduction to the economic analysis of public policy issues. The focus of the course, which draws on microeconomic theory, is on the development of analytical tools and their application to key policy issues relating to the spending, taxing and financing activities of government. Particular emphasis is given to recent developments in public economics, including findings from current research, in areas such as behavioral public economics, new empirical methods, and policy innovations.

The course aims:

  • To give students an appreciation of the analytical methods in economics for the study of the public sector and the role of the state in principle and in practice.
  • To provide a thorough grounding in the principles underlying the role of the state, the design of social insurance and the welfare state and the design of the tax system.
  • To enable students to understand the practical problems involved in implementing these principles.

The course is divided into three parts:

Part 1. An overview of the role of Government.

Part 2. Examining the issues relating to welfare analysis, social insurance, and pensions.

Part 3. Assessing the tax policy and its impact on individuals and companies, while the final part explores the issues of privatization, outsourcing and the proper scope of government.

Topics covered include:

  • Equity, efficiency and the role of the state
  • Behavioral public economics
  • Market failure and social insurance
  • The pensions “crisis” and savings policy
  • Reforming welfare systems
  • The impact of tax incentives and welfare-to-work schemes on unemployment
  • Tax incentives and investment, including cross-border investment
  • Optimal taxation and tax evasion
  • Globalization and tax policy
  • Climate change policy: taxes versus emissions trading
  • Rethinking the scope of government

Course Outcomes

By the end of the course, students should be able to:

  • Discuss critically key issues in public economics, informed by recent research.
  • Present a coherent argument orally and in writing on topics in public economics.
  • Demonstrate a familiarity with a range of policy issues and relevant analytical and empirical tools.

Language of Instruction: English   

EC307 Development Economics

In a world composed of similar people, why is it that we live in relative comfort while about 1.4 billion people live on less than $1 a day? And, more importantly, what can be done about it?

This course will use all the skills students have developed as an economist to try and answer important economic questions. Providing an answer is hard because solving the problem of world poverty is not as simple as reallocating income. It would take $511 billion a year to increase the incomes of the poorest to just $2 a day, but calculated in 2003 the G7 countries aspire to give (but do not quite) just $142 billion a year in aid.

In short, solving world poverty requires finding places where an intervention can generate more in income than it costs. Fortunately, the economic theory that students already know tells us how to find such places. The economic model that students have learned says that if some conditions (X) are met then nothing can be done about poverty without making other people worse off. But we can flip this conclusion on its head: if X is not true, then it is possible to make someone better off without making anyone worse off, and the theory tells us how – make the world more like X. Making progress on poverty means finding out where X does not hold – i.e. where do markets fail?

The course then is detective work. Theory tells us when markets will fail and we use econometrics analysis to find these places in the real world. Finally, the course uses rigorous impact evaluation to find out whether the intervention implied by theory works. The course will teach students all the tools they need to apply this thinking, and it is the goal that students will use it to make a difference in the developing world.

Topics covered include:

  • The Neo-classical Model and Convergence of Income
  • Coordination and Persistent Poverty
  • Credit, Inequality in the Divergence of Incomes
  • The Psychology of Poverty
  • Health and Nutrition
  • The Role of Institutions in Development
  • Political Economy and Corruption
  • Property Rights and Investment Incentives
  • International Aid and Economic Growth
  • Microfinance
  • Credit, Saving, and Insurance
  • Land Redistribution
  • Role of Media and Policy in Development
  • Social Networks and Social Capital
  • Role Regulation in Development
  • Intrahousehold Allocations and Gender
  • Technology Adoption and Learning

Language of Instruction: English   

Recommended US semester credits: 3  

EC312 Advanced Econometrics

This course will present an advanced treatment of econometric principles for cross-sectional, panel and time-series data sets. While concentrating on linear models, some non-linear cases will also be discussed, notably limited dependent variable models and generalized methods of moments.

The course focuses on modern econometric techniques, addressing both technical derivations and practical applications. Applications in the areas of microeconomics, macroeconomics, and finance will be considered.

The topics covered will include.

Main Regression

  • Principles of Estimation (Ordinary Least Squares, Generalized Least Squares and Maximum Likelihood Estimation with Micro-Econometric applications)
  • Principles of Testing (t- and F-test; Wald, Likelihood Ratio, Lagrange Multiplier Testing Principles).
  • Time Series: Basic Time Series Processes; Stationarity and Nonstationarity – Unit roots and Cointegration.

Estimation Methodology

  • Endogeneity in linear regression models; Instruments; 2SLS estimator and Generalized IV estimator; Simultaneous equations.
  • Motivation, definition and asymptotic properties of GMM estimator; Efficient GMM estimation; Over-identifying restrictions.
  • Introduction to Panel Data Models: Fixed effect and random effect models.
  • Arellano-Bond estimator in dynamic panel data models.
  • Introduction to Quantile estimation.

Language of Instruction: English   

Recommended US semester credits: 3  

EC320 Applied Econometrics and Big Data

This course will provide a solid grounding in recent developments in applied micro-econometrics, including state-of-the art methods of applied econometric analysis.

The course will combine both analytical and computer-based (data) material to enable students to gain practical experience in analysing a wide variety of econometric problems. It will also discuss how modern data science approaches can be used to answer important economic questions. Students will be reading various applied economic papers which apply the techniques being taught. Applications that will be considered include labour, development, industrial organisation and finance.

The topics include analysis of matching methods, identification of average, local average and marginal treatment effects using instrumental variables, regression discontinuity, randomised control experiments, post-estimation diagnostics, cross section and panel data with static and dynamic models, binary choice models and binary classification methods in machine learning, maximum likelihood estimation, ridge regression, lasso regression, and principal component regression.

Lectures are complemented with computing exercises using real data in R or Stata.

This course is ideal for advanced undergraduate students, graduate students, early-career academic researchers, and researchers in the public, private or non-profit sector.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

EC351 International Economics

This course provides an analysis of the economic relationships between countries, covering both trade and monetary issues.

The course is split into two parts:

International macroeconomic issues

This part of the course starts out with an overview of the balance of payment accounts and open economy income identities. It then focuses on some of the key questions in open economy macroeconomics such as:

  • How are nominal exchange rates determined?
  • What does it mean for a currency to be overvalued or undervalued?
  • Why do countries run large current account surpluses or deficits? Are such external imbalances sustainable?
  • Why do some fixed exchange rate regimes fail and end in a currency crisis?
  • What are the benefits and costs of a common currency?

International trade theory and policy

This part of the course addresses some of the classic questions of international trade theory such as:

  • Who trades what with whom?
  • What are the effects of trade on welfare and the income distribution?
  • What are the effects of barriers to trade and economic integration?

This course looks both at the answers of classical and new trade theory to these questions. The first part ends with an overview of recent theoretical and empirical research on the role of heterogeneous firms in international trade.

Language of Instruction: English   

Recommended US semester credits: 3  

FM202 Analysis and Management of Financial Risk

This course helps to develop the relevant knowledge and understanding of risk management practices for students aiming to advance their careers in financial risk management.

The course is roughly divided into four parts:

It starts with an introduction to the classification of risk and the basic principles of diversification and hedging, optimal portfolio choice. This will include an overview of the Capital Asset Pricing Model, which is widely applied for the equilibrium pricing of risks.

Then, the class will discuss the methods to manage market risk for fixed income and equity portfolios. Students will learn about Value at Risk (VaR) and its applications to risk management practices.

Next, students are introduced to the concept of endogenous risks to demonstrate how financial risks originate within the financial system. The course will also highlight behavioral aspects of risk and discuss important limitations of current risk management practices.

Finally, the course turns to credit risk, with a focus on ratings based and structural models. Students also cover credit risk on portfolios and credit derivatives. In the final lecture, students will discuss the recent credit crisis and the ensuing regulatory responses and tie together the various parts of the course.

Topics covered include:

  • Foundations of risk measurement and risk finance theory.
  • Basic risk management instruments: Forwards, futures, swaps, and options.
  • Market risk management: Methods for hedging risk in equity and fixed income portfolios; Delta and Gamma, Duration and Convexity.
  • Value-at-Risk: Definition, implementation, and evaluation of risk forecasts. Alternative risk measures.
  • Credit risk: Merton model, the KMV approach, and ratings based models.
  • Introduction to credit derivatives and mortgage-backed securities.
  • Limitations and failures of risk models.
  • Endogenous risk.
  • Some ideas from behavioral finance: noise trader risk, limits to arbitrage, bubbles.
  • The impact of the credit crisis and its implications for risk management and regulation.

Course Outcomes

The objective of the course is to provide a conceptual framework for thinking about financial risk, covering both theoretical background and practical implementation. In particular, five out of twelve classes will be held in the computer lab in order to demonstrate how the material taught in the course can be used in practice.

Upon completion of the course, students will

  • Have learned the main tools and practices needed to assess and evaluate financial risks.
  • Understand risk management practices in an industry setting.
  • Gain the ability to critically assess risk management reports and research.

Language of Instruction: English   

Recommended US semester credits: 3  

FM225 Fixed Income Securities, Debt Markets, and the Macro Economy

This course helps to develop the relevant knowledge and understanding of fixed income instruments and interest rate models for students aiming for a career in the fixed income field. The course will provide an overview of the major institutions, organizations and investors, and the recent developments in fixed income, covering both theoretical background and practical implementation.

Topics will include:

  • An overview of debt markets with a focus on the US and the UK: players, institutions and various instruments.
  • Organisation and structure of debt markets. Terminology and market conventions. Specific markets: US Treasuries, corporate bonds, agency securities, reports, MBS, etc.
  • Basics of fixed income securities: interest rates and discount factors, the yield curve, coupon and zero coupon bonds.
  • Basics of interest rate risk management: variation in interest rates, duration, convexity, risk measurement, and management. Interest rate risk, liquidity risk, inflation risk, credit risk.
  • Term structure models: binomial trees, risk-neutral pricing, no-arbitrage and pricing of interest rate securities.
  • Monetary policy and the role of the central bank in setting interest rates. Interest rates and inflation. The relationship between interest rates and future economic activity.
  • Fixed-income derivatives: Treasury futures, Eurodollar futures, options, swaps, mortgage-backed securities.
  • Credit derivatives.
  • The 2007-2009 credit crisis.

In this course, students will discuss traditional debt instruments (namely government and corporate bonds) and fixed income derivatives (including mortgage-backed securities), develop the theory for valuing them and study the determinants of risk and return of fixed-income securities. Students will also cover the most important state-of-the-art interest rate models, develop their theoretical underpinnings and provide examples for practical implementation. Students will also discuss the role of fixed-income securities in risk management and introduce the concepts of duration and convexity.

The course will closely look at the interdependencies and the roles of the different players in the debt markets. In particular, students will examine the role of, and the instruments available to the central bank in setting interest rates. The major focus of the course will be on economic intuition and on understanding the products and interrelationships in the fixed income markets. Students will have the opportunity to directly implement the concepts as eight out of twelve classes will be held in the computer lab. Finally, students will relate the course topics to the credit crisis of 2007-2009 and discuss implications for the future of debt markets.

Language of Instruction: English   

Recommended US semester credits: 3  

FM230 Alternative Investments

In the era of significant market turmoil institutional, as well as individual, investors look beyond traditional investment vehicles such as bonds and shares. For example, the price of gold substantially increased in 2009. The purpose of this course is to explore the world of alternative investments such as investments in hedge funds, private equity/venture capital funds, real estate, and commodities, either directly or through funds of funds. This course will combine theory with empirical exercises, allowing students to get a “hands-on” experience. Students will want to see what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

Topics will include:

  • Overview of Alternative Assets
  • Hedge Funds
    • A Hedge Fund Investment Program
    • Due Diligence
    • Risk Management
    • Regulation
    • Funds of Funds
  • Commodities and Managed Futures
    • Investing in Commodity Futures
    • Managed Futures
  • Venture Capital (VC)
    • Raising Funds
    • Valuation of Investments
    • Initial Public Offerings (IPOs)
  • Leveraged Buyouts (LBOs)
    • Financing and Leverage
    • LBO valuation
    • Value Added
    • Exit Strategies
  • Real Estate
    • Real Estate and an Investment Asset
    • Valuation
    • Securitization and Mortgage Backed Securities (MBSs)’
    • Real Estate Investment Trusts (REITs)
    • Demographics

There will also be guest lectures by practitioners from the hedge fund and private equity industries.

The course will combine theory with empirical exercises, allowing students to get a hands-on experience. The course want to identify what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

As part of class work, students will be encouraged to work with data (in Excel). Particular data work will include measuring the risks of investment portfolios, calculating the alphas of hedge fund strategies, evaluating an LBO deal, evaluating a VC deal and pricing an MBS.

Language of Instruction: English   

Recommended US semester credits: 3  

FM250 Finance

This intensive course is designed to deliver a greater understanding of asset markets and corporate finance.

Part 1: Asset-markets

This section offers a unified perspective of modern valuation methods in the context of three important asset classes – fixed income, stocks, and derivatives. The course will then proceed to fixed-income securities, before moving onto stocks, starting with basic notions of risk, return, diversification, and portfolio theory. Capital asset pricing model (CAPM) will be discussed, before examining whether the market values stocks efficiently, or whether there are “abnormal” returns leading to large profits.

Part 2: Corporate Finance

These questions addressed in this part of the course can be divided into two broad sets.

Decisions regarding how to spend funds on alternative investment projects (also known as capital budgeting). Here the course will describe the alternative techniques commonly employed to assess investment opportunities.

How to raise the funds necessary to finance those investments. Firms’ decisions over debt/equity ratios will be analyzed here. This analysis will then be broadened to allow for the possibility that debt/equity choices may affect how firms are run. Incentives to adopt riskier strategies as a function of overall leverage will be considered, as will the debt overhang problem.

In general, the topics covered will include:

  • Net Present Value technique
  • Introduction to portfolio theory
  • The Capital Asset Pricing Model (CAPM)
  • Stock market efficiency
  • Forward and futures contracts, option pricing
  • Investment decisions and the significance of real options
  • Capital structure and dividend decisions
  • Capital restructuring: Initial Public Offerings

Course Outcomes

Students will learn about the theory and application of Financial Securities and Corporate Finance. The course broadly covers financial instruments, such as equity and fixed income and derivative securities, as well as key concepts in Corporate Finance. It will also enhance a student’s understanding of how firms choose their capital structure, conflicts between shareholders and debt holders, payout policy, and initial public offerings.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

FM255 Financial Markets and Portfolio Management

This course is about the characteristics of financial markets and optimal investment strategies. Its aim is to provide a thorough understanding of both the mechanics and the operations of financial markets, whilst paying particular attention to the trading and evaluation of securities in equity and bond markets.

During this intensive course, students will focus on asset pricing, active portfolio management and risk immunization, portfolio performance evaluation, the predictability of returns, dynamic trading strategies, and behavioral finance. Consideration will also be given to recent developments in both the theory and practice of cross-sectional asset pricing and the evaluation of risky securities.

Topics covered include:

  • Time-Varying Expected Returns and Market Efficiency;
  • Optimal portfolio selection (asset allocation and security selection);
  • Risk and return in Equilibrium: The CAPM;
  • Empirical evidence on the capital asset pricing model;
  • Performance of the C-CAPM, the equity premium, and risk-free rate puzzles;
  • Anomalies and trading strategies (size effect, value premium, momentum, reversal, Betting-Against-Beta);
  • Multi-factor models: APT and I-CAPM;
  • Optimal investment strategy when privately informed;
  • Active portfolio management, insurance, and immunization;
  • Organization of financial markets and exchanges;
  • Determinants of bid-ask spreads;
  • Behavioral finance;
  • Bond portfolio management and immunization.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

FM350 Advanced Corporate Finance

This course focuses on theoretical issues which arise in modern corporate finance, and its major theme will be the firm’s capital structure and pay-out decision.

The coruse will see that under certain assumptions, this decision is irrelevant; this is the Modigliani and Miller Theorem. These assumptions will then be loosened to see when it may be better for firms to issue debt versus equity, or to repurchase shares rather than pay out dividends.

In the final part of the course, students will learn about real options and apply this to study the optimal policy of a firm raising capital to finance risky investment.

Topics covered will include:

  • A review of valuations
  • Modigliani and Miller
  • Taxes
  • Recapitalisation
  • Bankruptcy and distress
  • Private Information
  • Dividend policy
  • Optimal capital structure
  • Investment under constraints
  • Real options

Course Outcomes

This course is a broad overview of major topics in Corporate Finance. Students are assumed to have seen many of the topics in earlier courses; however, this course provides more in-depth coverage. The topic of capital structure is covered in FM250 Finance. However, FM250 provides only a brief overview. Advanced Corporate Finance will build on that by taking the decisions of the firm as the main topic. Students will spend significant amounts of time on topics beyond the scope of FM250, such as taxes, bankruptcy, private information, signaling, and real options.

Language of Instruction: English   

Recommended US semester credits: 3  

IR100 Great Thinkers and Pivotal Leaders: Shaping the Global Order

This intensive course takes a historical approach to examining a series of pivotal transitions in the shaping of the global order across the last several centuries. Focusing on some of the world’s most influential thinkers and leaders; from Smith to Keynes; from Napoleon to Churchill and beyond; the course explores the new ideas that ascended, the leaders that defined these orders, and the interaction between the two.

A number of important questions will be examined and addressed, including;

  • What role do ideas play in international relations?
  • To what extent can individual leaders shape the global order?
  • Do circumstances determine which ideas and which leaders come to the fore? Or do individuals make their own history?
  • What does this history reveal that might help us to shape international politics today and in the future?

This course considers an international order from the standpoint of both international security and international political economy. It presumes no experience in either field or the social sciences more generally. As such, it is ideal for students who want a rigorous introduction to international politics. It will also appeal to students who want to delve deeper into the history and evolution of the international system.

The course is divided into six modules:

1. War Economies

  • John Locke and the birth of the Fiscal-Military State
  • Adam Smith’s influence on the American Revolutionary War

2. Revolutionaries

  • Napoleon’s ‘Armed Doctrine’
  • The Economist and the Apogee of Free Trade
  • Marx in the Russian Revolution

3. The World at War: Reordering International Politics

  • The Interwar Collapse and the Rise of John Maynard Keynes
  • Decolonization: Gandhi versus Churchill

4. Cold Warriors

  • The Anglo-American Postwar System: Keynes versus White
  • George Kennan’s Cold War

5. Competing Development Models

  • Raúl Prebisch and Import Substitution Industrialisation
  • Milton Friedman, ‘The Chicago Boys’, and Export Oriented Industrialization

6. Neoconservatives and the War on Terror

  • Condoleezza Rice’s National Security Strategy

While some familiarity with these figures and topics is valuable, the course assumes no prior expertise or training. Students, however, should appreciate that the course will challenge them to engage a variety of materials across a range of substantive issue areas–all of which is rich but much of which is challenging.

Course Outcomes

By the end of this course, students should have:

  • An understanding of several of the most significant shifts in international relations across the last several centuries
  • Familiarity with those intellectuals and political figures who are reputed to have shaped these shifts
  • Their own well-articulated and defensible view about the relationship between ideas and policy in international relations

Language of Instruction: English   

Recommended US semester credits: 3  

IR102 Capitalism, Democracy, and Equality: The Political Economy of the Advanced Nations

This course introduces students to the complex and conflictual relationship between democracy and capitalism in the advanced market economies (North America, Europe, Australasia and Japan). The focus of the course is on the different ways in which democratic states have sought to promote economic growth and redistribute resources in favor of different political interests. The course presents some key concepts and theories of comparative political economy and uses them to compare institutions, policies, and outcomes across countries and over time.

The aim is to understand why some advanced countries have grown faster than others, why some are less equal than others, why countries have addressed common international pressures in such different ways, and how they have responded to the current crisis. Key areas of inquiry include the growth of the public sector, the structure of the welfare state, the role of electoral and party politics, the politics of monetary and fiscal policy, the distribution of income and capital, and the consequences of the current crisis.

Language of Instruction: English   

Recommended US semester credits: 3  

IR105 Understanding Foreign Policy: the Diplomacy of War, Profit, and Justice

This course examines the key concepts and schools of thought in the study of foreign policy. Concentrating on the process of decision making, internal and external factors which influence foreign policy and the instruments available to foreign policy decision-makers, the course will provide an understanding of the role and effect that foreign policy has on international politics. Students will learn about the different strategies that great powers and small states employ in achieving their aims; the foreign policy challenges posed by terrorism, rogue and failed states; and the significance of new foreign policy powers like China. The classes will combine a discussion of these theories with their application to selected countries in the North, and South, international organizations and transnational actors.

The principal themes to be addressed by the course are:

  • How do states formulate and implement their foreign policy?
  • Does leadership make a difference in successful foreign policy?
  • Can national foreign policies ever be ethical?
  • What can states and international organizations do to prevent common threats like terrorism, nuclear proliferation, and climate change?
  • Are democracies more likely to pursue aggressive foreign policies than dictatorships?
  • How are the foreign policies of emerging powers reshaping the practices, structure, and institutions of the international system?

Each of the lectures will be followed by a discussion seminar on a topic drawn from the lecture and readings. Active student participation is encouraged.

Language of Instruction: English   

Recommended US semester credits: 3  

IR115 Culture and Globalization

Globalisation is one of the most important dynamics of contemporary social life. The world is increasingly interconnected, and some pundits even talk of living in a ‘global village’. But what does globalization really entail? And what are the cultural forces that shape it? This course explores these key questions, largely from the vantage point of anthropology—the social science that has done the most to help us understand a culture. The course begins by considering the relationship between the culture concept and globalization since it is so often a concern with a culture that animates the debates about globalization. Is a ‘clash of civilizations’ inevitable in our globalized world? Does the emergence of a ‘global village’ spell the end of cultural difference?

As an introductory course, students need not have a background in anthropology. After considering the basic tenets of the culture concept in relation to globalisation, the lectures move on to consider a number of related topics, including economic development and transnational corporations; the influence of globalisation on tourism; the role of cultural knowledge in the ‘global war on terror’; human rights; cultural identity in a geopolitical perspective; and global media networks. There will also be a lecture on the London 2012 Olympics and globalization.

Readings for the course are organized around a set of important anthropological pieces, but also include perspectives from sociology, political science, media studies, and journalism. The readings are complemented by interactive on-line exercises as well as the discussion and analysis of the film, news clips, and other media sources. The class also takes a field trip to Tower Hamlets in London, to the areas around Brick Lane, to complement readings on migration.

Language of Instruction: English   

Recommended US semester credits: 3  

IR207 Development in the International Political Economy

This course is an introduction to International Development. It examines the politics and the institutional framework for social and economic development. For developing countries, the national and international contexts interact to set constraints on development and determine possible avenues of growth. Specific issues like economic growth, international debt, aid, poverty, and environment are increasingly a matter of negotiation amongst domestic interest groups and interaction between government and international institutions.

The course will also look at the impact of economic globalization, international trade, and the emerging role of civil society and international investment in development. The inter-connection between economic development and social and political issues like democratization, governance, poverty, human rights, gender, famine, environmental issues, climate change and armed conflict is examined, as well as the role of international organizations such as the World Bank, the United Nations, and the World Trade Organization.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

IR209 International Political Economy

This course will introduce students to the contemporary study of international political economy, or how politics and economics interact at the global, regional and national levels. The course will highlight the major analytical frameworks in the field of IPE and how these can be applied to empirical questions concerning the structure of the global political economy, the sources and implications of globalization, the nature of international economic institutions, and national economic policy choices.

In the empirical topics, students will cover a mixture of historical and contemporary issues, including:

  • European Monetary Union;
  • Trade policies and economic development;
  • Globalization of Capital Markets;
  • Financial Crises;
  • Global economic governance;
  • The politics of global imbalances.

Each of the twelve daily sessions for the course will consist of a lecture, followed by a seminar discussion.

Language of Instruction: English   

Recommended US semester credits: 3  

IR214 Public Policy Analysis

How do politics and institutions shape public policy? How and why does policy change? How does bureaucracy work (or not), and how might it be reformed? This course addresses these questions using theories and methods of public policy analysis, with a global scope.

This course is an introduction to theories, approaches, and methods for public policy analysis. These include how politics and institutions shape public policy, the processes of public policy change, and the challenges of public sector management. The scope of the course is global, with applications and examples from countries around the world.

The course will introduce students to fundamental social-scientific concepts like power, collective action, institutions, and accountability, as well as tools useful for evaluating policy impact and effectiveness. The course will enable students to understand the tradeoffs involved in the design of policies and institutions; the influence of factors like partisanship, policy ideas, information technology, and globalization; as well as reforms that attempt to improve government efficiency, representation, and transparency. The course will also give students the conceptual tools to be able to analyze specific policy issue areas of their interest, and understand the complex forces that shape policy change.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

IR245 International Journalism and Society - The Role of the Media in the Modern World

This course is suitable for professionals and activists working in journalism or media-related fields as well as students from all backgrounds. Participants should have studied at least one introductory course in either political science, international relations, sociology, economics or media and communications.

This course is a unique opportunity to benefit from the LSE’s outstanding research into modern journalism combined with talks by pioneering media professionals. It is taught by leading academics, including Professor Charlie Beckett who was an award-winning senior journalist with the BBC and who runs the LSE’s international journalism think-tank, Polis. Every day there will a lecture by a senior academic who teaches the LSE’s post-graduate media and communications courses. There will also be a daily guest talk by a leading media practitioner giving students insights into contemporary cutting-edge news media. The seminars will encourage students to think and act like a journalist facing all the dramatic ethical and technological challenges of reporting the complex and dangerous world we live in.

We live in a world where information is an increasingly critical resource. The news media play a crucial role in the production and dissemination of that information. From Twitter to the New York Times, from Al Jazeera to Facebook, journalism is having an impact on our personal and political lives, and so it is vital to understand their role in the modern world.

Participants in this course will emerge with a better understanding of the shifts taking place in the practices, forms, and processes within the news media and their consequences for the role of journalism in contemporary society.

Language of Instruction: English   

Recommended US semester credits: 3  

LL102 Introduction to International Human Rights: Theory, Law, and Practice

This course involves critical exploration of what is meant by human rights. It will investigate the possibility that the international human rights movement, together with the law that underpins it, can provide a universal ethical and legal order. There are three main areas of focus;

Theories and Histories of Human Rights

The course begins with an introductory account of the general idea of human rights and of the history of the idea from ancient Greek origins and the Enlightenment to contemporary understandings. Students will be exposed to several enduring human rights critiques and, through a series of case-studies, examine the tensions that the practice of human rights today highlights, such as in the areas of free speech, prohibiting torture, and countering terrorism.

Structures and Standards

The course then turns to assessing the structure and standards that govern international human rights law, beginning with an introduction as to what modern international law is and how it is made. This part of the course will consider the international and regional human rights systems and the range of legal instruments and standards that have been developed.

Key issues in Human Rights

Finally, this intensive course will study selected key issues in international human rights law such as:

  • The right to freedom from torture and inhuman or degrading treatment (including the use of torture in so-called “ticking bomb” scenarios)
  • Freedom of expression (including the protection awarded to expression that is offensive to religious feelings, holocaust denial, and hate speech)
  • Life and death (including the issue of abortion and assisted suicide)
  • Global warming and environmental protection.

Course outcomes

The intended learning outcome is an informed and critical understanding of contemporary international human rights theory, law and practice.

Language of Instruction: English   

Recommended US semester credits: 3  

LL105 International Law: Contemporary Issues

The overall purpose of the course is to engage students in international affairs through the study of the legal frameworks which govern them, while at the same time situating that legal framework within the material and cultural conditions of international politics.

The course will cover a selection of contemporary issues drawn from the following issue areas:

  • The protection of the global environment
  • Possibilities and challenges of global economic integration
  • The use of force in international politics
  • The promotion and protection of human rights
  • International criminal law
  • The laws of war (international humanitarian law)
  • The right of colonized and other subjugated or oppressed peoples to self-determination.

The course is not restricted to those with a background in law and typically draws students with an interest in international relations, global politics, and global economic relations, as well as law. However, a familiarity with legal terminology is an advantage.

Course outcomes

Students will be given a solid grounding in the foundations of the international legal order. However, the course will be problem-based, rather than doctrinal, and will focus on controversial and challenging issues in contemporary international politics – including the recent examples of the use of force, international economic integration, international criminal law and the promotion and protection of human rights.

Language of Instruction: English   

Recommended US semester credits: 3  

LL135 Introduction to Corporate Law and Governance

This course provides students with an introduction to corporate law and to the legal and non-legal governance mechanisms which encourage directors to act in their company’s interests rather than their own.

The course sets corporate law and governance within its economic and business context, with particular regard to how corporate law and governance mechanisms facilitate or inhibit economic activity. The course adopts an explicitly comparative approach drawing on UK, US and continental European law.

Language of Instruction: English   

Recommended US semester credits: 3  

LL200 Competition Law and Policy: Controlling Private Power

Competition law involves, essentially, the use of legal tools to control the exercise of market power by economic actors, in order to protect the competitive forces within the market. The competition rules present a powerful set of tools for public enforcement agencies—and, indeed, private litigants—to prevent and sanction harmful instances of private power.

This course provides a comprehensive overview of the structure and substance of the EU competition rules, examining both the current legal framework and the underlying competition policy considerations which have informed its application and development.

At its core, the EU competition framework incorporates three key provisions:

  • Article 101 TFEU, which prohibits anti-competitive agreements and other forms of coordination between economic actors;
  • Article 102 TFEU, which prohibits the abuse of market power held by an economic entity which holds a dominant position in the market; and
  • EU Merger Regulation (EUMR), which prohibits mergers and other concentrations which would significantly impede effective competition in the internal market.

EU competition law is, moreover, enforced under a distinctive and multi-faceted system which involves centralized enforcement by the European Commission, decentralized enforcement by the national competition authorities of the Member States, and a growing emphasis on private enforcement via antitrust damages actions brought by ‘private attorneys general’.

This course aims to provide participants with a comprehensive understanding of the core rules and principles that underpin the EU competition system, alongside broader competition policy considerations. It does so through a systematic examination and assessment of each of these three areas of substantive competition law, as well as an exploration of the enforcement context plus the wider policy landscape. Although the course focuses primarily on the competition rules of the EU, comparative analysis to other jurisdictions—particularly the US—will be made where appropriate.

Throughout the course, an emphasis is placed upon the crucial, and often controversial, the question as to whether and when competition law should be deployed to control private power within the market and society more generally. The course thus aims to equip participants with both a strong technical knowledge of EU competition law and the ability to engage with and critique issues of competition policy.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

LL204 Cyberlaw

This course covers a selection of topics in the field of Information Technology and the Law (or Cyberlaw). It will begin by considering the debate about the nature of the influence of information technology upon the development of new legal doctrine, moving on to consider, through topics such as data protection, computer misuse and computer evidence, copyright and digital rights management, criminal content liability and defamation, both how the law has responded to the challenges of information technologies, and the extent to which legal issues have shaped the development of information society policy.

The focus will be initially on English law, although the global nature of IT law means that there is strong EU, Commonwealth, and US legal influence upon the English system, so comparative aspects will be introduced, and readings will include materials drawn from, amongst others, US law journals.

This course does not require an in-depth understanding of information technology – rather, it is primarily interested in the implications of the use of information technology, and the intended and unintended consequences of regulating that use.

Course outcomes

At the end of the course, students should be able to:

  • Critically evaluate ongoing developments in the law relating to information technologies.
  • Display an understanding of how these developments relate to one another.
  • Examine areas of the doctrinal and political debate surrounding rules and theories.
  • Evaluate those rules and theories in terms of internal coherence and practical outcomes.
  • Draw on the analysis and evaluation contained in primary and secondary sources.

Language of Instruction: English   

Recommended US semester credits: 3  

LL206 International Financial Law

This course offers a cross-sectoral analysis covering financial market transactions in commercial banking, insurance, derivatives, capital markets and asset management. It allows participants to grasp the big picture of the legal underpinnings of financial transactions and to understand how risk in the financial market is entered, managed, dispersed and shifted. The course analyses and compares the legal basis of financial transactions in both Common law and Civil law jurisdictions. The focus is mainly on broad principles and policy issues rather than a detailed examination of the statute, case law and drafting in order to allow students from all jurisdictions to take home valuable knowledge directly applicable to their respective jurisdictions.

Course structure

– Introduction

  • Logic and players of the financial market
  • Overview of types of financial transactions
  • Reasoning and sources of financial law
  • The types of risk and the role of financial law
  • European and global legal and regulatory architecture

– Raising capital: taking risk

  • The nature of banks, deposit-taking, loans, syndicated loans
  • Issuance of debt securities, Eurobonds, and equity
  • Investment funds
  • Transfer by assignment and novation

– Mitigating risk (I): personal surety and derivatives

  • Guarantee and insurance
  • Derivatives and credit default swaps
  • Cross-comparison and the risk of re-characterization

– Mitigating risk (II): asset-backing

  • Security interests
  • Financial Collateral
  • Repurchase agreements and securities lending

– Mitigating risk (III): risk reduction

  • Set off
  • Close-out netting
  • Multilateral clearing

– Cross-jurisdictional analysis

  • Private international law analysis in financial law
  • Cross-border collateral
  • Cross-jurisdictional netting
  • Common patterns and difficulties

Who should sign up for this course?

This course is designed to be of both high academic and direct practical value. It appeals to students preparing for a career in financial markets as well as to practitioners wishing to broaden their horizon. It will be of particular interest for the

  • Private financial sector (management, compliance, legal, governmental and international affairs, etc)
  • Legal practice specializing in the above-mentioned activities
  • Government and governmental agencies (policymakers from treasuries, ministries of economy/finance/justice, foreign office, etc.)
  • Central banks (management, legal, regulation and oversight, international affairs, etc.)
  • International organization and EU organs and agencies (policymakers, strategy, legal, international affairs, etc.)
  • Non-governmental organizations and advocacy groups active in the field of international financial marketsStudents interested in any of the above, or pursuing a masters programme related to financial markets

Learning outcome

  • Understand how risk is created and managed by using different types of legal arrangements.
  • Get to know the difficulties in making these arrangements insolvency proof and robust in times of financial crisis.
  • Understand the legal difficulties that flow from the international character of the financial market.

This course is a good match with LL207 International Financial Regulation, which concerns the public law side of financial markets. In combination, these courses provide the full picture of financial markets law and regulation. However, both courses are self-contained.

Language of Instruction: English   

Recommended US semester credits: 3  

LL208 Freedom of Speech, Media, and the Law

This course examines the legal and administrative regulation of the media and the rights framework within which media practice occurs. It focuses on three areas or ‘blocks’: the regulation of published content to protect private interests; the regulation of published content in defence of public interests, and the control of pre-publication newsgathering practices. The course uses English law and regulation (as informed by European human rights law) as the default teaching vehicle, but at all stages interrogates and compares equivalent laws in North American, European, and other comparable jurisdictions. The course, first, introduces two underpinning themes: the media landscape and the main social, technological and regulatory influences shaping its development, and the protection of freedom of expression and freedom of the press in national and international law. It then proceeds to review potential restrictions on these values that are aimed at promoting or preserving the specific private and/or public interests. This analysis is undertaken in three blocks of study: 1) The regulation of content to protect private interests. This involves a focus on the personal interests in privacy, confidentiality and reputation, and includes consideration of the torts of defamation and misuse of private information. 2) The regulation of content in the public interest. This involves a focus on prejudice to legal proceedings through media publicity, the publishing of offensive content, publication of sensitive material affecting national security, and concerns with political impartiality. It includes consideration of the law of contempt, blasphemy and related public order offences, official secrets and terrorism legislation, and broadcasting bans on certain forms of speech. 3) The regulation of newsgathering practices. This involves consideration of the use of harassing, deceptive and surreptitious methods by journalists (for example, door-stepping, phone-hacking and undercover reporting), the protection of journalists’ sources, and access to state-held information (freedom of information and open justice).

Language of Instruction: English   

Recommended US semester credits: 3  

LL301 Corporate Finance Law

This course examines the legal aspects of corporate finance.

In this module we will analyse the legal aspects of corporate finance. There are three primary components of this module. The first component is an introduction to corporate finance theory, which covers the nature of equity and debt as well as an introduction to theories of capital structure and valuation. The second part of the module covers the nature and regulation of legal capital, including minimum capital and the regulation of dividends and share buy-backs. The third part of the module addresses the issuance of debt and equity, related aspects of securities regulation, such as insider trading and disclosure regulation, as well as mergers & acquisitions.

The module’s primary focus is on UK and EU law and regulation. However, the module will also draw on the approaches to regulation in other jurisdictions, such as the United States and Germany.

Language of Instruction: English   

Recommended US semester credits: 3  

ME116 Essential Statistics for Economics and Econometrics

This is an introductory course on probability and statistics, with examples to demonstrate their applications in the social and natural sciences.

There will be a strong emphasis on the fundamental concepts of probability theory, random variables and their distributions, sampling theory, statistical inference, and linear regression. Inferential techniques such as estimation, hypothesis testing, and regression analysis are important in the fitting and interpretation of statistical models. We will explore the mathematical background of these concepts and techniques, and demonstrate their use through practical examples and interactive experiments.

The course should be of value to anyone intending to pursue further study in statistics or any other field involving the analysis of data.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

ME117 Further Statistics for Economics and Econometrics

This course provides a precise and accurate treatment of probability, distribution theory and statistical inference.

As such there will be a strong emphasis on mathematical statistics as important discrete and continuous probability distributions are covered (such as the Binomial, Poisson, Uniform, Exponential and Normal distributions). Properties of these distributions will be investigated including the use of the moment generating function.

Point estimation techniques are discussed including the method of moments, maximum likelihood, and least squares estimation. Statistical hypothesis testing and confidence interval construction follow, along with non-parametric and goodness-of-fit tests and contingency tables. A treatment of linear regression models, featuring the interpretation of computer-generated regression output and implications for prediction, rounds off the course.

Collectively, these topics provide a solid training in statistical analysis. As such, this course would be of value to those intending to pursue further study in statistics, econometrics and/or empirical economics. Indeed, the quantitative skills developed by the course are readily applicable to all fields involving real data analysis.

Language of Instruction: English   

Recommended US semester credits: 3  

ME200 Computational Methods in Financial Mathematics

Derivative pricing, investment decisions, and financial risk management rely on stochastic models describing financial markets. In these models, quantities of interest such as the price of a financial product often need to be approximated using computational methods. This is a hands-on course in which such methods are introduced and implemented. A particular focus of the course is on Monte Carlo methods, i.e., simulation methods to approximate integrals and expectations of random variables.

Based on the binomial tree model, the fundamental ideas underlying the theory of risk-neutral pricing are introduced. In this context, expressions of options prices as suitable expectations of random variables are derived. It is then shown how these expectations can be evaluated using computational methods.

The course also develops the students’ computational skills. Indeed, each time a new computational method is introduced, students implement and apply it to relevant examples during supervised programming sessions. To enable students to do this, the course contains an introduction to programming in R and its applications in financial mathematics.

The course is largely self-contained and reviews the necessary mathematical concepts. No prior programming experience is expected.

Language of Instruction: English   

Recommended US semester credits: 3  

ME306 Real Analysis

Real analysis is the area of mathematics dealing with real numbers and the analytic properties of real-valued functions and sequences. In this course, we shall develop concepts such as convergence, continuity, completeness, compactness, and convexity in the settings of real numbers, Euclidean spaces, and more general metric spaces.

Real analysis is part of the foundation for further study in mathematics as well as graduate studies in economics. A considerable part of economic theory is difficult to follow without a strong background in real analysis. For example, the concepts of compactness and convexity play an important role in optimization theory and thus in microeconomics.

This course in real analysis is designed to meet the needs of economics students who are planning to study at postgraduate level as well as professionals who need to follow developments in economic analysis and research.

Language of Instruction: English   

Recommended US semester credits: 3  

ME314 Introduction to Data Science and Big Data Analysis

Data Science and Big Data Analytics are exciting new areas that combine scientific inquiry, statistical knowledge, substantive expertise, and computer programming. One of the main challenges for businesses and policymakers when using big data is to find people with the appropriate skills. Good data science requires experts that combine substantive knowledge with data analytical skills, which makes it a prime area for social scientists with an interest in quantitative methods.

This course integrates prior training in quantitative methods (statistics) and coding with substantive expertise and introduces the fundamental concepts and techniques of Data Science and Big Data Analytics.

Typical students will be advanced undergraduate and postgraduate students from any field requiring the fundamentals of data science or working with typically large datasets and databases. Practitioners from industry, government, or research organizations with some basic training in quantitative analysis or computer programming are also welcome. Because this course surveys diverse techniques and methods, it makes an ideal foundation for more advanced or more specific training. Our applications are drawn from social, political, economic, legal, and business and marketing fields.

Language of Instruction: English   

Recommended US semester credits: 3  

ME315 - Machine Learning in Practice

Increased adoption of such technology across the world has driven massive growth in the volume of data, requiring businesses to harness the power of machine learning to make decisions, learn about and predict customer behaviour to drive strategic advantage.

Combining the fields of engineering, statistics, mathematics and computing, machine learning is one of the leading data science methodologies revolutionising business. This course will cover a wide range of machine learning methods, both model-based and algorithmic. Presenting the theoretical foundations of these methodologies, you will have an opportunity to apply them using real-world examples and datasets.

Recommended US semester credits: 3  

MG101 Marketing

Peter Drucker, the father of business consulting once famously remarked, “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation.” In today’s highly competitive business environment these words ring even truer: a well-designed marketing strategy can make all the difference between success and failure in the marketplace.

Marketing, ultimately, is about understanding and shaping behavior. Accordingly, banks and other financial institutions, as well as governmental, medical, and not-for-profit organizations–from those that design and sell financial products, to those that implement public policy (e.g., those dedicated to reducing drunk driving, increasing literacy, and encouraging safe contraception), have all found that a well-thought-out marketing strategy can be a critical arbiter of success even in this “ideas marketplace.”

Topics covered include:

  • Introduction to marketing and marketing frameworks
  • Consumer behavior
  • Marketing research (quantitative and qualitative approaches)
  • Segmentation, targeting & positioning strategies
  • New and existing products
  • Distribution decisions
  • Pricing decisions and strategies
  • Promotion, advertising and communication strategies
  • Business and industrial marketing
  • International marketing

This course will combine LSE’s premier standing in the social sciences with cutting-edge management practices. By using a wide range of quantitative as well as qualitative methods, interactive lectures, videos, hands-on exercises, and case studies, students will develop an understanding of key analytical frameworks and tools that are essential to a good marketing strategy.

Language of Instruction: English   

Recommended US semester credits: 3  

MG103 Consumer Behavior: Behavior Fundamentals for Marketing and Management

For many companies, non-profit organizations, and political figures, success relies on understanding the “consumers.” What is it that they really want, and why? What information will they attend to, and what will they ignore? How do they make decisions, why do they sometimes make bad ones, and how can we help them make better ones? It can be tempting to answer these questions intuitively, based on one’s own experiences as a consumer. However, intuitions about human psychology are often wrong.

The course will provide an introduction to the basic theories for understanding consumer behavior. Different from traditional business management courses which often skim, we dig deeper into all the fundamental psychological theories so that students have a thorough understanding of the root theories on which many consumer insights are based.

Using a variety of methods, students will cover fundamental research pertaining to all four stages of the consumer experience;

  • Seeking and acquiring information
  • Evaluating this information and using it to form attitudes and make decisions
  • Translating those attitudes and decisions into behavior (or not)
  • Assessing past experiences and using the assessment to inform future behavior.

The course will use concrete business case studies and examples (e.g. from the NYT, WSJ, FT, BBC and other current sources) for illustration and to apply the theories under examination. Since these theories apply equally to individual and group decision making situations, the material provides a useful framework for understanding related issues like managerial decision making as well as consumer behavior.

Course Outcomes

By the end of the course, students will be able to:

  • Describe the key components of the decision-making process
  • Illustrate the influences on how people acquire information, form attitudes, make choices, translate those choices into behavior, and evaluate their experiences
  • Predict what people will do in various situations, using major theories of behavior
  • Understand the role of changing technologies (e.g. social media) in shaping how marketers respond to consumers.

This course should be especially useful to people without the extensive previous study of psychology.

Language of Instruction: English   

Recommended US semester credits: 3  

MG106 Strategic Management

This course is an introduction to the field of Strategic Management. It covers the key concepts and theories in the field and how they can be applied to real business situations.

The main objective is to learn how to formulate and implement successful strategies that grant a competitive advantage to a firm, where a strategy is a plan that guides managerial decisions. The theoretical background is founded on the “resource-based view” of the firm and its complementarity to microeconomic theory, game theory, and organizational theory.

Topics covered include:

  • The business model of the firm
  • Industry structure and strategic interactions
  • Value creation and competitive advantage
  • Strategic resources
  • Dynamic capabilities
  • Diversification and synergies

The course is illustrated with thought-provoking case studies about real companies in various industries.

Course outcomes

The objective of the course is to illustrate how strategic management supports companies in achieving competitive advantage. At the end of the course students should be able to:

  • Efficiently structure a competitive situation amidst an excess of data
  • Use analytical reasoning to evaluate competitive scenarios
  • Critically evaluate strategic alternatives for a firm
  • Recognize competitive patterns among firms in the global economy

Language of Instruction: English   

Recommended US semester credits: 3  

MG110 The Science and Art of Decision Making

How to choose in tough situations where stakes are high, and there are multiple conflicting objectives? What are the common ‘decision traps’ we fall into and how can we avoid them? Why do projects often take us longer and cost more than planned, and how should we get rid of this problem? How do we perceive risk, and how to act when there are risks and uncertainties involved in a decision? How can we create options that are better than the ones originally available?

Decision making is a central aspect of both everyday life and any business activity. The ability to understand how decisions are made, and to predict, guide and improve those decisions will be an invaluable part of every change maker’s toolbox. It is this ability that will be developed in this course, which introduces students to insights from behavioral science and decision analytics and its application to management and policy making.

Our journey will begin with an exploration of systematic biases and errors, to raise your awareness about these “traps” with a view to becoming a better intuitive decision maker. The adventure will continue with the discovery of both qualitative and quantitative solutions, that will equip you with a key analytical framework for successful strategic decisions.

Note: This course focuses on behavioral decision science. Students who are more interested in behavioral economics should consider EC200. Moreover, this course is an introductory course, tailored for undergraduates, or new graduates. If you are already familiar with decision science concepts and theories, or if you already have a few years of professional expertise, you are welcome instead to apply to the executive course Strategic Decision Making taught on the LSE Executive Education program.

Recommended US semester credits: 3-4   Contact Hours: 7.5

MG133 Foundations of Management

This course examines management from a range of perspectives, including economics, sociology and psychology. Students explore, through lectures and classes, major issues faced by contemporary organisations and managers.

Its content is as wide-ranging as strategy formulation, people management, culture, globalisation, innovation and leadership and is designed to appeal to students from a range of backgrounds who may be studying business or management for the first time.

Teaching will be organised around daily interactive lectures and seminars. Through engaging in-class activities participants will develop their understanding of management as well as their management skills by applying learned theories to a range of interesting scenarios and problems.

Language of Instruction: English   

Recommended US semester credits: 3  

MG204 Leadership in Organizations

This course is designed to provide students with the knowledge, skills, and analytical capabilities needed to practice excellent leadership within modern organizations.

The course explores the very nature of leadership. It addresses how individuals effectively build agreement to shared goals and courses of action, and also then facilitate organizational movement toward the achievement of these goals.

In particular, the course highlights theory and research that accounts for how leaders acquire and exercise social influence in a manner that contributes to their credibility and the motivation of their followers. It also makes note of individual differences in leader behavior and examines in what instances situations determine the salience of these differences. The emphasis of this intensive three weeks of study is on the application of theory, comparing and contrasting ideas, self-reflection, and self-discovery of one’s own leadership potential and strengths.

Topics covered include:

  • Introduction to leadership in organizations
  • Influence and power
  • Insights into human motivation
  • Individual differences and leadership
  • Transformational leadership
  • Leadership communication
  • Building effective leader-member relationships
  • Shared leadership and team working
  • Leaders and social networks
  • Leading change

Course outcomes:

  • Understand the multidisciplinary origins of leadership theory.
  • Increase students’ ability to critically evaluate the relevance of different theories depending on the situation and to apply these theories accordingly.
  • Develop the ability to analyze one’s own leadership style and to critically assess one’s own leadership effectiveness.

Language of Instruction: English   

Recommended US semester credits: 3  

MG206 Business Strategy in International Markets

This course is an introduction to strategic management of global firms. It studies the patterns of business globalisation and analyses successful strategies of firms facing the challenges imposed by the international integration of markets and production processes.

Topics include the changing structure of industries and the response of companies, both those based in the advanced industrial countries and those based in emerging markets, to increasing international competition and opportunities opened by international integration in terms of markets and efficiency gains. The content of the course reflects the increasing role played by emerging economies in international markets.

The issues will be approached by integrating conceptual, empirical and case methods. Particular emphasis will be placed on bringing these different perspectives together. The format of the course is highly participatory and interactive, and will involve a combination of case studies, interactive exercises, discussions and readings.

Language of Instruction: English   

Recommended US semester credits: 3  

MG209 Bargaining and Negotiation: Interests, Information, Strategy, and Power

Negotiating skills are crucial to both our professional and personal lives. People negotiate every day about issues as important as employment contracts and as trivial as which film to see with a friend. Although some level of natural ability is important, like any other skill, one’s ability to perform in negotiation is also determined by one’s formal training and experience/practice.

Note: This course is for beginners who have minimal previous experience in negotiation and have not taken any courses in negotiation. If you are already familiar with negotiation and negotiation theory, please consider taking MG300 instead.

MG209 will develop students’ skills through both formal training and practice. Specifically, this course will introduce students to the strategic, psychological, and cultural aspects of negotiations as well as practical tips gleaned from negotiation research.

This intensive three-week course covers;

  • Distributive negotiation
  • Preparing for a negotiation
  • Integrative negotiation
  • Negotiation styles
  • Ethics, trust, and building a relationship
  • Communication in negotiations: Verbal, nonverbal, and computer-mediated
  • Emotions in negotiations
  • Power and Influence
  • Creativity and problem solving
  • Culture in negotiations
  • Behaviors of skilled negotiators

Language of Instruction: English   

Recommended US semester credits: 3  

MG220 Corporate and Organizational Strategy

This course is an introduction to the strategic management of modern diversified firms. It studies how the firm’s portfolio of products and its internal organization can be designed to maximize corporate performance.

The course addresses the following questions facing modern managers:

  • What products and businesses should the firm focus on?
  • What activities should be subcontracted and which should be carried out inside the firm?
  • How should the firm be organized internally to coordinate and motivate employees, managers, and other stakeholders?
  • What are the consequences of providing workers and managers with performance pay?
  • What is corporate culture, and does a strong culture affect the way that an organization reacts to changes in the environment?
  • What are the decision-making and integration challenges arising in mergers and acquisitions?
  • What makes strategic alliances valuable and stable?

The issues will be approached by integrating conceptual, empirical and case methods. Particular emphasis will be placed on bringing these different perspectives together. The course will only require basic mathematical knowledge but will call for rigorous reasoning. In the classes, students are expected to make presentations and to participate actively in the discussions.

Language of Instruction: English   

Recommended US semester credits: 3  

AC101: Managerial Accounting and Financial Control

This course analyses perspectives and techniques in accounting and financial control and considers how they are used by modern enterprises to effectively manage in competitive business environments. Its focus is on managerial decision making and the use of accounting and financial management tools under varying strategic and operational market conditions.

The course also looks at performance-based strategic management and accounting issues and considers aspects of international financial management.

Language of Instruction: English   

Course Link

Recommended US semester credits: 3  

AC110 Principles of Accounting

Accounting has been defined as ‘the language of business’. A knowledge of the underlying concepts of accounting, in addition to its procedures, is an essential element in the education of future managers and other professionals. Topics covered will include:

  • The uses of accounting information
  • The nature and function of accounting conventions
  • The preparation of the financial statements of business entities
  • The accounting treatment of assets and liabilities
  • Cash flow statements
  • Accounting for groups
  • Financial statement analysis

Language of Instruction: English   

Recommended US semester credits: 3  

AC215 Business Analysis and Valuation

This course introduces the valuation techniques used by analysts – in corporate finance, equity research, fund management, and strategy consulting – in order to value stocks and firms. It shows how to use financial statements, and more generally business analysis, in order to generate expectations of future performance. It furthermore shows how the value of a stock or a firm in an efficient market reflects expectations of future performance.

More specifically, this course introduces a framework for business analysis and valuation using publicly available information, such as the information contained in financial statements, in order to develop an in-depth analysis of a firm and extract its fundamental value. Much of the course’s emphasis is on case studies.

The framework covers key analysis components such as:

  • business strategy analysis;
  • accounting analysis;
  • financial analysis;
  • prospective analysis.
  • The framework is then applied to a variety of contexts including:
    • valuation;
    • evaluation of mergers and acquisitions.

Each of the topics introduced in this course covers both institutional details and results of relevant academic research. It is furthermore supported by a case study. This course should hence appeal to students interested in corporate finance, equity research, fund management, and strategy consulting.

Language of Instruction: English   

Recommended US semester credits: 3  

EC101 Introductory Microeconomics

This course seeks to introduce microeconomic analysis as a way of understanding the world. It exposes students to standard microeconomic theory with a focus on the development of economic intuition, whilst also providing certain economic tools that support this intuition along the way. The microeconomic mind-set helps students thinking about issues that are relevant empirically and for policy.

Topics covered will include:

  • Consumer behavior
  • Theory of the firm
  • Competitive market equilibrium
  • Monopoly
  • Factor markets
  • General equilibrium theory
  • Welfare economics

Course Outcomes

One of the key outcomes of this course will be discovering when abstract models are useful and when they are not. Students will participate in class-based exercises that will enhance their understanding of these models through active engagement, rather than just passive reading or listening.

The course is aimed primarily at those who have not previously studied economics. It provides a foundation for further study in economics but is sufficiently self-contained to provide grounding for those who do not intend to take the subject any further.

Language of Instruction: English   

Recommended US semester credits: 3  

EC102 Introductory Macroeconomics

This course takes both a short and a long-term view of the economy and aims to help students understand recent developments in macroeconomics using graphic analysis and simple algebra.

It focuses on the stylized facts of business cycle fluctuations, economic growth, and unemployment; discusses what light modern macroeconomics can shed on these facts; and finally evaluates the scope for policy to improve macroeconomic performance.

This first part of the course introduces the building blocks of the macroeconomy and provides an overview of the performance of the economy in the long-run. Topics focus on the determination of national income, the determinants of long-term economic growth, inflation and unemployment and economic pathologies such as persistent unemployment and hyperinflation

Topics list:

  • General equilibrium
  • Money and inflation
  • Labour markets and unemployment
  • Economic growth
  • The open economy

An overview of the behavior of economy in the short term. This part of the course reviews business cycle fluctuations, the design and effects of monetary and fiscal policy, budget deficits and government debt and the open economy.

Topics list:

  • Economic fluctuations and stabilization policy
  • The evolution of stabilization policy
  • Government debt
  • Financial intermediation
  • The credit crunch

The course will conclude with a review of the European Monetary Union and the Euro Crisis, and the Great Recession.

Language of Instruction: English   

Recommended US semester credits: 3  

EC200 Introduction to Behavior Economics

This course will provide students with a clear introduction to the principles and methods of Behavioural Economics. Behavioral economics considers the ways that people are more social, more impulsive, less adept at using information, and more susceptible to psychological biases than the standard economic models assume. Students will explore key departures, and the consequences for individuals, firms, and policy.

Language of Instruction: English   

Recommended US semester credits: 3  

EC201 Intermediate Microeconomics

The aim of this course is to give students the conceptual basis and the necessary tools for understanding modern microeconomics at an intermediate level. This course makes extensive use of calculus.

The course covers six broad areas:

  • Consumer theory
  • The theory of the firm
  • General equilibrium and welfare
  • Game theory
  • Oligopolistic markets
  • Information economics

The theory of the consumer explores the demand side, while the theory of the firm discusses the supply side of the economy. General equilibrium puts the two parts together and discusses welfare implications, including in the presence of externalities.

The second part of the course introduces basic concepts in non-cooperative game theory, emphasizing the strategic aspect of economic interaction. Game theory is then applied to analyze informational problems in economics, in particular problems of hidden information (adverse selection) and hidden action (moral hazard).

As a working knowledge of differential calculus is essential for the study of quantitative solutions to an economic problem, it is a pre-requisite for the course. In class on the first day of the course, partial differential calculus will be reviewed and students will be introduced to the techniques of constrained maximization, such as Lagrangian procedures, used throughout.

Language of Instruction: English   

Recommended US semester credits: 3  

EC202 Intermediate Macroeconomics

In recent times, macroeconomic questions have once again surged to the forefront of public attention and debate.

This course aims to bring students up-to-date with modern developments in macroeconomic theory and offer fresh perspectives on the macroeconomic challenges of the day.

It is essentially structured around a series of key questions:

  • What are the forces that drive long-term prosperity?
  • Why does economic activity fluctuate?
  • Can and should policymakers seek to ameliorate business cycles?
  • What are the features of financial markets and labor markets that make them special, and how do they interact with the rest of the economy?
  • What is the role of banks and why are they inherently fragile?
  • How should households and firms plan for an uncertain future?
  • What are the implications of increasing globalization of trade and finance for the economy?
  • How should central banks conduct monetary policy?

The approach of this course is to discuss the salient features of the data and then go on to present macroeconomic models to study these issues.

Topics covered include:

  • Macroeconomic measurement and data
  • Labour markets and unemployment
  • Economic growth
  • Consumption and saving
  • Investment
  • Money and banking
  • Business cycles
  • Monetary and fiscal policy
  • International Macroeconomics

Language of Instruction: English   

Recommended US semester credits: 3  

EC204 Financial Markets and the Global Economy: the History of Bubbles, Crashes, and Inflations

This course introduces students to the long run evolution of financial markets and to the history of monetary policy and financial crises. The course covers the two waves of the financial globalization of 1880-1914 and 1980-2008 and the de-globalization of finance that happened during the Great Depression.

A long run perspective on the 2008 financial crisis and Eurozone crisis will be provided through several historical case studies of stock market crashes, banking panics, currency crises and sovereign defaults. Finally, the course explores how central banks responded to financial crises in different historical periods and covers the main evolutions in monetary policy over the last two hundred years.

The topics covered will include:

  • Stock market integration and stock market crashes before 1800
  • The gold standard and financial globalization before WW1
  • Banking panics under the classical gold standard and the monetary policy response
  • WW1 financial instability, hyperinflation and the reconstruction of the gold standard in the 1920s
  • Monetary policy and the Great Depression of the 1930s
  • The 1929 stock market crash and 1931 global financial crisis
  • Banking panics in the United States during the 1930s
  • The evolution of monetary policy since WW2
  • Financial crises in Latin America in 1980-2001
  • The East Asian financial crisis of 1997/1998
  • The 2008 subprime crisis in historical perspective
  • The 2008-2012 Eurozone crisis in historical perspectiveThe course puts a strong emphasis on how institutional and political factors shape the process of financial globalization and on how the structure of the international monetary system affects the conduct of monetary policy and the response to financial crises.

Course outcomes

This course is aimed at students willing to improve their understanding of money and financial markets through a historical approach. It is also highly relevant to financial market practitioners and policymakers interested in acquiring a long-run perspective on current hot issues in money, banking, and finance.

Language of Instruction: English   

Recommended US semester credits: 3  

EC240 Environmental Economics & Sustainable Development

Environmental economics is a comparatively young, but by now well-established, branch of economic study. In successfully applying standard microeconomic analysis to the field of the natural environment and sustainable development, economists have challenged many erroneous, but strongly held preconceptions of policy makers and environmentalists alike. For example, the course will show that the efficient level of environmental pollution is, in general, not zero and that there is no risk of running out of fossil fuel non-renewable resources anytime soon.

Conversely, however, policymakers fail to understand the fundamental drivers behind renewable resource extinction (particularly species loss), are over-optimistic when it comes to the environmental consequences of economic growth and insufficiently grasp the obstacles toward achieving strong multilateral agreements for solving international and global environmental problems.

The topics covered will include:

  • Environmental externalities and the theory of market failure
  • Economics of pollution control (the efficient level of environmental pollution, taxes, tradable permits, command-and-control)
  • Economics of natural resource use (non-renewable resources such as oil, gas, and metals as well as renewable resources such as fish and forests)
  • Economics of sustainable development (including the measurement of sustainable development and the effect of economic growth on the environment)
  • Valuation of environmental resources (including cost-benefit analysis)
  • Economics of international environmental problems (including the impact of trade and investment liberalization on the environment)
  • Economics of climate change (including the analytical controversy among environmental economists and a focus on the Kyoto Protocol as the only global agreement on reducing greenhouse gas emissions).

Course Outcomes

This course aims to provide students with a sound knowledge and understanding of the major results of environmental economics. Its intention is to deliver the fundamentals of rigorous economic analysis for continued undergraduate studies at a higher level, or graduate studies in environmental economics.

Language of Instruction: English   

Recommended US semester credits: 3  

EC270 Public Finance

This course provides a broad, up-to-date introduction to the economic analysis of public policy issues. The focus of the course, which draws on microeconomic theory, is on the development of analytical tools and their application to key policy issues relating to the spending, taxing and financing activities of government. Particular emphasis is given to recent developments in public economics, including findings from current research, in areas such as behavioral public economics, new empirical methods, and policy innovations.

The course aims:

  • To give students an appreciation of the analytical methods in economics for the study of the public sector and the role of the state in principle and in practice.
  • To provide a thorough grounding in the principles underlying the role of the state, the design of social insurance and the welfare state and the design of the tax system.
  • To enable students to understand the practical problems involved in implementing these principles.

The course is divided into three parts:

Part 1. An overview of the role of Government.

Part 2. Examining the issues relating to welfare analysis, social insurance, and pensions.

Part 3. Assessing the tax policy and its impact on individuals and companies, while the final part explores the issues of privatization, outsourcing and the proper scope of government.

Topics covered include:

  • Equity, efficiency and the role of the state
  • Behavioral public economics
  • Market failure and social insurance
  • The pensions “crisis” and savings policy
  • Reforming welfare systems
  • The impact of tax incentives and welfare-to-work schemes on unemployment
  • Tax incentives and investment, including cross-border investment
  • Optimal taxation and tax evasion
  • Globalization and tax policy
  • Climate change policy: taxes versus emissions trading
  • Rethinking the scope of government

Course Outcomes

By the end of the course, students should be able to:

  • Discuss critically key issues in public economics, informed by recent research.
  • Present a coherent argument orally and in writing on topics in public economics.
  • Demonstrate a familiarity with a range of policy issues and relevant analytical and empirical tools.

Language of Instruction: English   

EC307 Development Economics

In a world composed of similar people, why is it that we live in relative comfort while about 1.4 billion people live on less than $1 a day? And, more importantly, what can be done about it?

This course will use all the skills students have developed as an economist to try and answer important economic questions. Providing an answer is hard because solving the problem of world poverty is not as simple as reallocating income. It would take $511 billion a year to increase the incomes of the poorest to just $2 a day, but calculated in 2003 the G7 countries aspire to give (but do not quite) just $142 billion a year in aid.

In short, solving world poverty requires finding places where an intervention can generate more in income than it costs. Fortunately, the economic theory that students already know tells us how to find such places. The economic model that students have learned says that if some conditions (X) are met then nothing can be done about poverty without making other people worse off. But we can flip this conclusion on its head: if X is not true, then it is possible to make someone better off without making anyone worse off, and the theory tells us how – make the world more like X. Making progress on poverty means finding out where X does not hold – i.e. where do markets fail?

The course then is detective work. Theory tells us when markets will fail and we use econometrics analysis to find these places in the real world. Finally, the course uses rigorous impact evaluation to find out whether the intervention implied by theory works. The course will teach students all the tools they need to apply this thinking, and it is the goal that students will use it to make a difference in the developing world.

Topics covered include:

  • The Neo-classical Model and Convergence of Income
  • Coordination and Persistent Poverty
  • Credit, Inequality in the Divergence of Incomes
  • The Psychology of Poverty
  • Health and Nutrition
  • The Role of Institutions in Development
  • Political Economy and Corruption
  • Property Rights and Investment Incentives
  • International Aid and Economic Growth
  • Microfinance
  • Credit, Saving, and Insurance
  • Land Redistribution
  • Role of Media and Policy in Development
  • Social Networks and Social Capital
  • Role Regulation in Development
  • Intrahousehold Allocations and Gender
  • Technology Adoption and Learning

Language of Instruction: English   

Recommended US semester credits: 3  

EC320 Applied Econometrics and Big Data

This course will provide a solid grounding in recent developments in applied micro-econometrics, including state-of-the art methods of applied econometric analysis.

The course will combine both analytical and computer-based (data) material to enable students to gain practical experience in analysing a wide variety of econometric problems. It will also discuss how modern data science approaches can be used to answer important economic questions. Students will be reading various applied economic papers which apply the techniques being taught. Applications that will be considered include labour, development, industrial organisation and finance.

The topics include analysis of matching methods, identification of average, local average and marginal treatment effects using instrumental variables, regression discontinuity, randomised control experiments, post-estimation diagnostics, cross section and panel data with static and dynamic models, binary choice models and binary classification methods in machine learning, maximum likelihood estimation, ridge regression, lasso regression, and principal component regression.

Lectures are complemented with computing exercises using real data in R or Stata.

This course is ideal for advanced undergraduate students, graduate students, early-career academic researchers, and researchers in the public, private or non-profit sector.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

EC351 International Economics

This course provides an analysis of the economic relationships between countries, covering both trade and monetary issues.

The course is split into two parts:

International macroeconomic issues

This part of the course starts out with an overview of the balance of payment accounts and open economy income identities. It then focuses on some of the key questions in open economy macroeconomics such as:

  • How are nominal exchange rates determined?
  • What does it mean for a currency to be overvalued or undervalued?
  • Why do countries run large current account surpluses or deficits? Are such external imbalances sustainable?
  • Why do some fixed exchange rate regimes fail and end in a currency crisis?
  • What are the benefits and costs of a common currency?

International trade theory and policy

This part of the course addresses some of the classic questions of international trade theory such as:

  • Who trades what with whom?
  • What are the effects of trade on welfare and the income distribution?
  • What are the effects of barriers to trade and economic integration?

This course looks both at the answers of classical and new trade theory to these questions. The first part ends with an overview of recent theoretical and empirical research on the role of heterogeneous firms in international trade.

Language of Instruction: English   

Recommended US semester credits: 3  

FM202 Analysis and Management of Financial Risk

This course helps to develop the relevant knowledge and understanding of risk management practices for students aiming to advance their careers in financial risk management.

The course is roughly divided into four parts:

It starts with an introduction to the classification of risk and the basic principles of diversification and hedging, optimal portfolio choice. This will include an overview of the Capital Asset Pricing Model, which is widely applied for the equilibrium pricing of risks.

Then, the class will discuss the methods to manage market risk for fixed income and equity portfolios. Students will learn about Value at Risk (VaR) and its applications to risk management practices.

Next, students are introduced to the concept of endogenous risks to demonstrate how financial risks originate within the financial system. The course will also highlight behavioral aspects of risk and discuss important limitations of current risk management practices.

Finally, the course turns to credit risk, with a focus on ratings based and structural models. Students also cover credit risk on portfolios and credit derivatives. In the final lecture, students will discuss the recent credit crisis and the ensuing regulatory responses and tie together the various parts of the course.

Topics covered include:

  • Foundations of risk measurement and risk finance theory.
  • Basic risk management instruments: Forwards, futures, swaps, and options.
  • Market risk management: Methods for hedging risk in equity and fixed income portfolios; Delta and Gamma, Duration and Convexity.
  • Value-at-Risk: Definition, implementation, and evaluation of risk forecasts. Alternative risk measures.
  • Credit risk: Merton model, the KMV approach, and ratings based models.
  • Introduction to credit derivatives and mortgage-backed securities.
  • Limitations and failures of risk models.
  • Endogenous risk.
  • Some ideas from behavioral finance: noise trader risk, limits to arbitrage, bubbles.
  • The impact of the credit crisis and its implications for risk management and regulation.

Course Outcomes

The objective of the course is to provide a conceptual framework for thinking about financial risk, covering both theoretical background and practical implementation. In particular, five out of twelve classes will be held in the computer lab in order to demonstrate how the material taught in the course can be used in practice.

Upon completion of the course, students will

  • Have learned the main tools and practices needed to assess and evaluate financial risks.
  • Understand risk management practices in an industry setting.
  • Gain the ability to critically assess risk management reports and research.

Language of Instruction: English   

Recommended US semester credits: 3  

FM225 Fixed Income Securities, Debt Markets, and the Macro Economy

This course helps to develop the relevant knowledge and understanding of fixed income instruments and interest rate models for students aiming for a career in the fixed income field. The course will provide an overview of the major institutions, organizations and investors, and the recent developments in fixed income, covering both theoretical background and practical implementation.

Topics will include:

  • An overview of debt markets with a focus on the US and the UK: players, institutions and various instruments.
  • Organisation and structure of debt markets. Terminology and market conventions. Specific markets: US Treasuries, corporate bonds, agency securities, reports, MBS, etc.
  • Basics of fixed income securities: interest rates and discount factors, the yield curve, coupon and zero coupon bonds.
  • Basics of interest rate risk management: variation in interest rates, duration, convexity, risk measurement, and management. Interest rate risk, liquidity risk, inflation risk, credit risk.
  • Term structure models: binomial trees, risk-neutral pricing, no-arbitrage and pricing of interest rate securities.
  • Monetary policy and the role of the central bank in setting interest rates. Interest rates and inflation. The relationship between interest rates and future economic activity.
  • Fixed-income derivatives: Treasury futures, Eurodollar futures, options, swaps, mortgage-backed securities.
  • Credit derivatives.
  • The 2007-2009 credit crisis.

In this course, students will discuss traditional debt instruments (namely government and corporate bonds) and fixed income derivatives (including mortgage-backed securities), develop the theory for valuing them and study the determinants of risk and return of fixed-income securities. Students will also cover the most important state-of-the-art interest rate models, develop their theoretical underpinnings and provide examples for practical implementation. Students will also discuss the role of fixed-income securities in risk management and introduce the concepts of duration and convexity.

The course will closely look at the interdependencies and the roles of the different players in the debt markets. In particular, students will examine the role of, and the instruments available to the central bank in setting interest rates. The major focus of the course will be on economic intuition and on understanding the products and interrelationships in the fixed income markets. Students will have the opportunity to directly implement the concepts as eight out of twelve classes will be held in the computer lab. Finally, students will relate the course topics to the credit crisis of 2007-2009 and discuss implications for the future of debt markets.

Language of Instruction: English   

Recommended US semester credits: 3  

FM230 Alternative Investments

In the era of significant market turmoil institutional, as well as individual, investors look beyond traditional investment vehicles such as bonds and shares. For example, the price of gold substantially increased in 2009. The purpose of this course is to explore the world of alternative investments such as investments in hedge funds, private equity/venture capital funds, real estate, and commodities, either directly or through funds of funds. This course will combine theory with empirical exercises, allowing students to get a “hands-on” experience. Students will want to see what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

Topics will include:

  • Overview of Alternative Assets
  • Hedge Funds
    • A Hedge Fund Investment Program
    • Due Diligence
    • Risk Management
    • Regulation
    • Funds of Funds
  • Commodities and Managed Futures
    • Investing in Commodity Futures
    • Managed Futures
  • Venture Capital (VC)
    • Raising Funds
    • Valuation of Investments
    • Initial Public Offerings (IPOs)
  • Leveraged Buyouts (LBOs)
    • Financing and Leverage
    • LBO valuation
    • Value Added
    • Exit Strategies
  • Real Estate
    • Real Estate and an Investment Asset
    • Valuation
    • Securitization and Mortgage Backed Securities (MBSs)’
    • Real Estate Investment Trusts (REITs)
    • Demographics

There will also be guest lectures by practitioners from the hedge fund and private equity industries.

The course will combine theory with empirical exercises, allowing students to get a hands-on experience. The course want to identify what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

As part of class work, students will be encouraged to work with data (in Excel). Particular data work will include measuring the risks of investment portfolios, calculating the alphas of hedge fund strategies, evaluating an LBO deal, evaluating a VC deal and pricing an MBS.

Language of Instruction: English   

Recommended US semester credits: 3  

FM250 Finance

This intensive course is designed to deliver a greater understanding of asset markets and corporate finance.

Part 1: Asset-markets

This section offers a unified perspective of modern valuation methods in the context of three important asset classes – fixed income, stocks, and derivatives. The course will then proceed to fixed-income securities, before moving onto stocks, starting with basic notions of risk, return, diversification, and portfolio theory. Capital asset pricing model (CAPM) will be discussed, before examining whether the market values stocks efficiently, or whether there are “abnormal” returns leading to large profits.

Part 2: Corporate Finance

These questions addressed in this part of the course can be divided into two broad sets.

Decisions regarding how to spend funds on alternative investment projects (also known as capital budgeting). Here the course will describe the alternative techniques commonly employed to assess investment opportunities.

How to raise the funds necessary to finance those investments. Firms’ decisions over debt/equity ratios will be analyzed here. This analysis will then be broadened to allow for the possibility that debt/equity choices may affect how firms are run. Incentives to adopt riskier strategies as a function of overall leverage will be considered, as will the debt overhang problem.

In general, the topics covered will include:

  • Net Present Value technique
  • Introduction to portfolio theory
  • The Capital Asset Pricing Model (CAPM)
  • Stock market efficiency
  • Forward and futures contracts, option pricing
  • Investment decisions and the significance of real options
  • Capital structure and dividend decisions
  • Capital restructuring: Initial Public Offerings

Course Outcomes

Students will learn about the theory and application of Financial Securities and Corporate Finance. The course broadly covers financial instruments, such as equity and fixed income and derivative securities, as well as key concepts in Corporate Finance. It will also enhance a student’s understanding of how firms choose their capital structure, conflicts between shareholders and debt holders, payout policy, and initial public offerings.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

IR102 Capitalism, Democracy, and Equality: The Political Economy of the Advanced Nations

This course introduces students to the complex and conflictual relationship between democracy and capitalism in the advanced market economies (North America, Europe, Australasia and Japan). The focus of the course is on the different ways in which democratic states have sought to promote economic growth and redistribute resources in favor of different political interests. The course presents some key concepts and theories of comparative political economy and uses them to compare institutions, policies, and outcomes across countries and over time.

The aim is to understand why some advanced countries have grown faster than others, why some are less equal than others, why countries have addressed common international pressures in such different ways, and how they have responded to the current crisis. Key areas of inquiry include the growth of the public sector, the structure of the welfare state, the role of electoral and party politics, the politics of monetary and fiscal policy, the distribution of income and capital, and the consequences of the current crisis.

Language of Instruction: English   

Recommended US semester credits: 3  

IR105 Understanding Foreign Policy: the Diplomacy of War, Profit, and Justice

This course examines the key concepts and schools of thought in the study of foreign policy. Concentrating on the process of decision making, internal and external factors which influence foreign policy and the instruments available to foreign policy decision-makers, the course will provide an understanding of the role and effect that foreign policy has on international politics. Students will learn about the different strategies that great powers and small states employ in achieving their aims; the foreign policy challenges posed by terrorism, rogue and failed states; and the significance of new foreign policy powers like China. The classes will combine a discussion of these theories with their application to selected countries in the North, and South, international organizations and transnational actors.

The principal themes to be addressed by the course are:

  • How do states formulate and implement their foreign policy?
  • Does leadership make a difference in successful foreign policy?
  • Can national foreign policies ever be ethical?
  • What can states and international organizations do to prevent common threats like terrorism, nuclear proliferation, and climate change?
  • Are democracies more likely to pursue aggressive foreign policies than dictatorships?
  • How are the foreign policies of emerging powers reshaping the practices, structure, and institutions of the international system?

Each of the lectures will be followed by a discussion seminar on a topic drawn from the lecture and readings. Active student participation is encouraged.

Language of Instruction: English   

Recommended US semester credits: 3  

IR115 Culture and Globalization

Globalisation is one of the most important dynamics of contemporary social life. The world is increasingly interconnected, and some pundits even talk of living in a ‘global village’. But what does globalization really entail? And what are the cultural forces that shape it? This course explores these key questions, largely from the vantage point of anthropology—the social science that has done the most to help us understand a culture. The course begins by considering the relationship between the culture concept and globalization since it is so often a concern with a culture that animates the debates about globalization. Is a ‘clash of civilizations’ inevitable in our globalized world? Does the emergence of a ‘global village’ spell the end of cultural difference?

As an introductory course, students need not have a background in anthropology. After considering the basic tenets of the culture concept in relation to globalisation, the lectures move on to consider a number of related topics, including economic development and transnational corporations; the influence of globalisation on tourism; the role of cultural knowledge in the ‘global war on terror’; human rights; cultural identity in a geopolitical perspective; and global media networks. There will also be a lecture on the London 2012 Olympics and globalization.

Readings for the course are organized around a set of important anthropological pieces, but also include perspectives from sociology, political science, media studies, and journalism. The readings are complemented by interactive on-line exercises as well as the discussion and analysis of the film, news clips, and other media sources. The class also takes a field trip to Tower Hamlets in London, to the areas around Brick Lane, to complement readings on migration.

Language of Instruction: English   

Recommended US semester credits: 3  

IR209 International Political Economy

This course will introduce students to the contemporary study of international political economy, or how politics and economics interact at the global, regional and national levels. The course will highlight the major analytical frameworks in the field of IPE and how these can be applied to empirical questions concerning the structure of the global political economy, the sources and implications of globalization, the nature of international economic institutions, and national economic policy choices.

In the empirical topics, students will cover a mixture of historical and contemporary issues, including:

  • European Monetary Union;
  • Trade policies and economic development;
  • Globalization of Capital Markets;
  • Financial Crises;
  • Global economic governance;
  • The politics of global imbalances.

Each of the twelve daily sessions for the course will consist of a lecture, followed by a seminar discussion.

Language of Instruction: English   

Recommended US semester credits: 3  

IR245 International Journalism and Society - The Role of the Media in the Modern World

This course is suitable for professionals and activists working in journalism or media-related fields as well as students from all backgrounds. Participants should have studied at least one introductory course in either political science, international relations, sociology, economics or media and communications.

This course is a unique opportunity to benefit from the LSE’s outstanding research into modern journalism combined with talks by pioneering media professionals. It is taught by leading academics, including Professor Charlie Beckett who was an award-winning senior journalist with the BBC and who runs the LSE’s international journalism think-tank, Polis. Every day there will a lecture by a senior academic who teaches the LSE’s post-graduate media and communications courses. There will also be a daily guest talk by a leading media practitioner giving students insights into contemporary cutting-edge news media. The seminars will encourage students to think and act like a journalist facing all the dramatic ethical and technological challenges of reporting the complex and dangerous world we live in.

We live in a world where information is an increasingly critical resource. The news media play a crucial role in the production and dissemination of that information. From Twitter to the New York Times, from Al Jazeera to Facebook, journalism is having an impact on our personal and political lives, and so it is vital to understand their role in the modern world.

Participants in this course will emerge with a better understanding of the shifts taking place in the practices, forms, and processes within the news media and their consequences for the role of journalism in contemporary society.

Language of Instruction: English   

Recommended US semester credits: 3  

LL102 Introduction to International Human Rights: Theory, Law, and Practice

This course involves critical exploration of what is meant by human rights. It will investigate the possibility that the international human rights movement, together with the law that underpins it, can provide a universal ethical and legal order. There are three main areas of focus;

Theories and Histories of Human Rights

The course begins with an introductory account of the general idea of human rights and of the history of the idea from ancient Greek origins and the Enlightenment to contemporary understandings. Students will be exposed to several enduring human rights critiques and, through a series of case-studies, examine the tensions that the practice of human rights today highlights, such as in the areas of free speech, prohibiting torture, and countering terrorism.

Structures and Standards

The course then turns to assessing the structure and standards that govern international human rights law, beginning with an introduction as to what modern international law is and how it is made. This part of the course will consider the international and regional human rights systems and the range of legal instruments and standards that have been developed.

Key issues in Human Rights

Finally, this intensive course will study selected key issues in international human rights law such as:

  • The right to freedom from torture and inhuman or degrading treatment (including the use of torture in so-called “ticking bomb” scenarios)
  • Freedom of expression (including the protection awarded to expression that is offensive to religious feelings, holocaust denial, and hate speech)
  • Life and death (including the issue of abortion and assisted suicide)
  • Global warming and environmental protection.

Course outcomes

The intended learning outcome is an informed and critical understanding of contemporary international human rights theory, law and practice.

Language of Instruction: English   

Recommended US semester credits: 3  

LL105 International Law: Contemporary Issues

The overall purpose of the course is to engage students in international affairs through the study of the legal frameworks which govern them, while at the same time situating that legal framework within the material and cultural conditions of international politics.

The course will cover a selection of contemporary issues drawn from the following issue areas:

  • The protection of the global environment
  • Possibilities and challenges of global economic integration
  • The use of force in international politics
  • The promotion and protection of human rights
  • International criminal law
  • The laws of war (international humanitarian law)
  • The right of colonized and other subjugated or oppressed peoples to self-determination.

The course is not restricted to those with a background in law and typically draws students with an interest in international relations, global politics, and global economic relations, as well as law. However, a familiarity with legal terminology is an advantage.

Course outcomes

Students will be given a solid grounding in the foundations of the international legal order. However, the course will be problem-based, rather than doctrinal, and will focus on controversial and challenging issues in contemporary international politics – including the recent examples of the use of force, international economic integration, international criminal law and the promotion and protection of human rights.

Language of Instruction: English   

Recommended US semester credits: 3  

LL135 Introduction to Corporate Law and Governance

This course provides students with an introduction to corporate law and to the legal and non-legal governance mechanisms which encourage directors to act in their company’s interests rather than their own.

The course sets corporate law and governance within its economic and business context, with particular regard to how corporate law and governance mechanisms facilitate or inhibit economic activity. The course adopts an explicitly comparative approach drawing on UK, US and continental European law.

Language of Instruction: English   

Recommended US semester credits: 3  

LL204 Cyberlaw

This course covers a selection of topics in the field of Information Technology and the Law (or Cyberlaw). It will begin by considering the debate about the nature of the influence of information technology upon the development of new legal doctrine, moving on to consider, through topics such as data protection, computer misuse and computer evidence, copyright and digital rights management, criminal content liability and defamation, both how the law has responded to the challenges of information technologies, and the extent to which legal issues have shaped the development of information society policy.

The focus will be initially on English law, although the global nature of IT law means that there is strong EU, Commonwealth, and US legal influence upon the English system, so comparative aspects will be introduced, and readings will include materials drawn from, amongst others, US law journals.

This course does not require an in-depth understanding of information technology – rather, it is primarily interested in the implications of the use of information technology, and the intended and unintended consequences of regulating that use.

Course outcomes

At the end of the course, students should be able to:

  • Critically evaluate ongoing developments in the law relating to information technologies.
  • Display an understanding of how these developments relate to one another.
  • Examine areas of the doctrinal and political debate surrounding rules and theories.
  • Evaluate those rules and theories in terms of internal coherence and practical outcomes.
  • Draw on the analysis and evaluation contained in primary and secondary sources.

Language of Instruction: English   

Recommended US semester credits: 3  

ME116 Essential Statistics for Economics and Econometrics

This is an introductory course on probability and statistics, with examples to demonstrate their applications in the social and natural sciences.

There will be a strong emphasis on the fundamental concepts of probability theory, random variables and their distributions, sampling theory, statistical inference, and linear regression. Inferential techniques such as estimation, hypothesis testing, and regression analysis are important in the fitting and interpretation of statistical models. We will explore the mathematical background of these concepts and techniques, and demonstrate their use through practical examples and interactive experiments.

The course should be of value to anyone intending to pursue further study in statistics or any other field involving the analysis of data.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

ME200 Computational Methods in Financial Mathematics

Derivative pricing, investment decisions, and financial risk management rely on stochastic models describing financial markets. In these models, quantities of interest such as the price of a financial product often need to be approximated using computational methods. This is a hands-on course in which such methods are introduced and implemented. A particular focus of the course is on Monte Carlo methods, i.e., simulation methods to approximate integrals and expectations of random variables.

Based on the binomial tree model, the fundamental ideas underlying the theory of risk-neutral pricing are introduced. In this context, expressions of options prices as suitable expectations of random variables are derived. It is then shown how these expectations can be evaluated using computational methods.

The course also develops the students’ computational skills. Indeed, each time a new computational method is introduced, students implement and apply it to relevant examples during supervised programming sessions. To enable students to do this, the course contains an introduction to programming in R and its applications in financial mathematics.

The course is largely self-contained and reviews the necessary mathematical concepts. No prior programming experience is expected.

Language of Instruction: English   

Recommended US semester credits: 3  

ME306 Real Analysis

Real analysis is the area of mathematics dealing with real numbers and the analytic properties of real-valued functions and sequences. In this course, we shall develop concepts such as convergence, continuity, completeness, compactness, and convexity in the settings of real numbers, Euclidean spaces, and more general metric spaces.

Real analysis is part of the foundation for further study in mathematics as well as graduate studies in economics. A considerable part of economic theory is difficult to follow without a strong background in real analysis. For example, the concepts of compactness and convexity play an important role in optimization theory and thus in microeconomics.

This course in real analysis is designed to meet the needs of economics students who are planning to study at postgraduate level as well as professionals who need to follow developments in economic analysis and research.

Language of Instruction: English   

Recommended US semester credits: 3  

ME314 Introduction to Data Science and Big Data Analysis

Data Science and Big Data Analytics are exciting new areas that combine scientific inquiry, statistical knowledge, substantive expertise, and computer programming. One of the main challenges for businesses and policymakers when using big data is to find people with the appropriate skills. Good data science requires experts that combine substantive knowledge with data analytical skills, which makes it a prime area for social scientists with an interest in quantitative methods.

This course integrates prior training in quantitative methods (statistics) and coding with substantive expertise and introduces the fundamental concepts and techniques of Data Science and Big Data Analytics.

Typical students will be advanced undergraduate and postgraduate students from any field requiring the fundamentals of data science or working with typically large datasets and databases. Practitioners from industry, government, or research organizations with some basic training in quantitative analysis or computer programming are also welcome. Because this course surveys diverse techniques and methods, it makes an ideal foundation for more advanced or more specific training. Our applications are drawn from social, political, economic, legal, and business and marketing fields.

Language of Instruction: English   

Recommended US semester credits: 3  

ME315 - Machine Learning in Practice

Increased adoption of such technology across the world has driven massive growth in the volume of data, requiring businesses to harness the power of machine learning to make decisions, learn about and predict customer behaviour to drive strategic advantage.

Combining the fields of engineering, statistics, mathematics and computing, machine learning is one of the leading data science methodologies revolutionising business. This course will cover a wide range of machine learning methods, both model-based and algorithmic. Presenting the theoretical foundations of these methodologies, you will have an opportunity to apply them using real-world examples and datasets.

Recommended US semester credits: 3  

MG101 Marketing

Peter Drucker, the father of business consulting once famously remarked, “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation.” In today’s highly competitive business environment these words ring even truer: a well-designed marketing strategy can make all the difference between success and failure in the marketplace.

Marketing, ultimately, is about understanding and shaping behavior. Accordingly, banks and other financial institutions, as well as governmental, medical, and not-for-profit organizations–from those that design and sell financial products, to those that implement public policy (e.g., those dedicated to reducing drunk driving, increasing literacy, and encouraging safe contraception), have all found that a well-thought-out marketing strategy can be a critical arbiter of success even in this “ideas marketplace.”

Topics covered include:

  • Introduction to marketing and marketing frameworks
  • Consumer behavior
  • Marketing research (quantitative and qualitative approaches)
  • Segmentation, targeting & positioning strategies
  • New and existing products
  • Distribution decisions
  • Pricing decisions and strategies
  • Promotion, advertising and communication strategies
  • Business and industrial marketing
  • International marketing

This course will combine LSE’s premier standing in the social sciences with cutting-edge management practices. By using a wide range of quantitative as well as qualitative methods, interactive lectures, videos, hands-on exercises, and case studies, students will develop an understanding of key analytical frameworks and tools that are essential to a good marketing strategy.

Language of Instruction: English   

Recommended US semester credits: 3  

MG103 Consumer Behavior: Behavior Fundamentals for Marketing and Management

For many companies, non-profit organizations, and political figures, success relies on understanding the “consumers.” What is it that they really want, and why? What information will they attend to, and what will they ignore? How do they make decisions, why do they sometimes make bad ones, and how can we help them make better ones? It can be tempting to answer these questions intuitively, based on one’s own experiences as a consumer. However, intuitions about human psychology are often wrong.

The course will provide an introduction to the basic theories for understanding consumer behavior. Different from traditional business management courses which often skim, we dig deeper into all the fundamental psychological theories so that students have a thorough understanding of the root theories on which many consumer insights are based.

Using a variety of methods, students will cover fundamental research pertaining to all four stages of the consumer experience;

  • Seeking and acquiring information
  • Evaluating this information and using it to form attitudes and make decisions
  • Translating those attitudes and decisions into behavior (or not)
  • Assessing past experiences and using the assessment to inform future behavior.

The course will use concrete business case studies and examples (e.g. from the NYT, WSJ, FT, BBC and other current sources) for illustration and to apply the theories under examination. Since these theories apply equally to individual and group decision making situations, the material provides a useful framework for understanding related issues like managerial decision making as well as consumer behavior.

Course Outcomes

By the end of the course, students will be able to:

  • Describe the key components of the decision-making process
  • Illustrate the influences on how people acquire information, form attitudes, make choices, translate those choices into behavior, and evaluate their experiences
  • Predict what people will do in various situations, using major theories of behavior
  • Understand the role of changing technologies (e.g. social media) in shaping how marketers respond to consumers.

This course should be especially useful to people without the extensive previous study of psychology.

Language of Instruction: English   

Recommended US semester credits: 3  

MG106 Strategic Management

This course is an introduction to the field of Strategic Management. It covers the key concepts and theories in the field and how they can be applied to real business situations.

The main objective is to learn how to formulate and implement successful strategies that grant a competitive advantage to a firm, where a strategy is a plan that guides managerial decisions. The theoretical background is founded on the “resource-based view” of the firm and its complementarity to microeconomic theory, game theory, and organizational theory.

Topics covered include:

  • The business model of the firm
  • Industry structure and strategic interactions
  • Value creation and competitive advantage
  • Strategic resources
  • Dynamic capabilities
  • Diversification and synergies

The course is illustrated with thought-provoking case studies about real companies in various industries.

Course outcomes

The objective of the course is to illustrate how strategic management supports companies in achieving competitive advantage. At the end of the course students should be able to:

  • Efficiently structure a competitive situation amidst an excess of data
  • Use analytical reasoning to evaluate competitive scenarios
  • Critically evaluate strategic alternatives for a firm
  • Recognize competitive patterns among firms in the global economy

Language of Instruction: English   

Recommended US semester credits: 3  

MG110 From Behavioral Insights to Strategic Decision Modelling

Decision making is a central aspect of virtually every management and business activity; important decisions are not only made by managers and entrepreneurs, but also by the consumers of their goods and services, and by their business rivals, partners, and employees. The ability to understand how decisions are made, and to predict, guide and improve those decisions, will be an invaluable part of every manager’s toolbox. It is this ability that will be developed in this course.

Some decisions are impossible to make analytically, for lack of time, data, computational ability, or awareness. These are situations that could put decision makers at risk of falling into systematic biases and errors. The first part of this course will raise one’s awareness about these ‘traps’ with a view to becoming a better intuitive decision maker.

Other decisions are made with and require extensive thought and analysis, as the stakes are high, there are multiple conflicting objectives to balance, and many sources of uncertainty about the future. These decisions are defined as strategic decisions and will be the focus of the second part of this course. Here students will learn how to become a better analytic decision maker: they will gain hands-on experience in structuring decision problems, identifying and representing strategic objectives and value trade-offs, as well as uncertainties and risks.

Course Outcomes

  • Learn how to choose in tough situations where stakes are high, and there are multiple conflicting objectives
  • Gain awareness of the common ‘decision traps’ people fall into
  • Understand why projects often take us longer and cost more than planned, and explore ways to get rid of this problem
  • Increase one’s knowledge of how people perceive risk, and how to act when there are risks and uncertainties involved in a decision
  • Enhance ones’ ability to create options that are better than the ones originally available
  • Understand how to avoid decision traps and become a better decision maker.

In lectures, students will engage with cutting-edge research in decision-making and analysis. In class, students will then investigate how it can be applied to both business and personal life.

Amongst the many topics considered will be:

  • Decision analysis
  • Decision maker and consumer behavior
  • Behavioral science
  • Nudge
  • Heuristics and biases
  • Decision making by groups and organizations
  • Evidence-based decision making.

Students will also learn how to use sound decision-making principles and simple decision-analytic tools to make better decisions. The course requires active participation in classroom activities that bring to life the principles being discussed.

Language of Instruction: English   

Recommended US semester credits: 3  

MG133 Foundations of Management

This course examines management from a range of perspectives, including economics, sociology and psychology. Students explore, through lectures and classes, major issues faced by contemporary organisations and managers.

Its content is as wide-ranging as strategy formulation, people management, culture, globalisation, innovation and leadership and is designed to appeal to students from a range of backgrounds who may be studying business or management for the first time.

Teaching will be organised around daily interactive lectures and seminars. Through engaging in-class activities participants will develop their understanding of management as well as their management skills by applying learned theories to a range of interesting scenarios and problems.

Language of Instruction: English   

Recommended US semester credits: 3  

MG204 Leadership in Organizations

This course is designed to provide students with the knowledge, skills, and analytical capabilities needed to practice excellent leadership within modern organizations.

The course explores the very nature of leadership. It addresses how individuals effectively build agreement to shared goals and courses of action, and also then facilitate organizational movement toward the achievement of these goals.

In particular, the course highlights theory and research that accounts for how leaders acquire and exercise social influence in a manner that contributes to their credibility and the motivation of their followers. It also makes note of individual differences in leader behavior and examines in what instances situations determine the salience of these differences. The emphasis of this intensive three weeks of study is on the application of theory, comparing and contrasting ideas, self-reflection, and self-discovery of one’s own leadership potential and strengths.

Topics covered include:

  • Introduction to leadership in organizations
  • Influence and power
  • Insights into human motivation
  • Individual differences and leadership
  • Transformational leadership
  • Leadership communication
  • Building effective leader-member relationships
  • Shared leadership and team working
  • Leaders and social networks
  • Leading change

Course outcomes:

  • Understand the multidisciplinary origins of leadership theory.
  • Increase students’ ability to critically evaluate the relevance of different theories depending on the situation and to apply these theories accordingly.
  • Develop the ability to analyze one’s own leadership style and to critically assess one’s own leadership effectiveness.

Language of Instruction: English   

Recommended US semester credits: 3  

MG206 Business Strategy in International Markets

This course is an introduction to strategic management of global firms. It studies the patterns of business globalisation and analyses successful strategies of firms facing the challenges imposed by the international integration of markets and production processes.

Topics include the changing structure of industries and the response of companies, both those based in the advanced industrial countries and those based in emerging markets, to increasing international competition and opportunities opened by international integration in terms of markets and efficiency gains. The content of the course reflects the increasing role played by emerging economies in international markets.

The issues will be approached by integrating conceptual, empirical and case methods. Particular emphasis will be placed on bringing these different perspectives together. The format of the course is highly participatory and interactive, and will involve a combination of case studies, interactive exercises, discussions and readings.

Language of Instruction: English   

Recommended US semester credits: 3  

MG209 Bargaining and Negotiation: Interests, Information, Strategy, and Power

Negotiating skills are crucial to both our professional and personal lives. People negotiate every day about issues as important as employment contracts and as trivial as which film to see with a friend. Although some level of natural ability is important, like any other skill, one’s ability to perform in negotiation is also determined by one’s formal training and experience/practice.

Note: This course is for beginners who have minimal previous experience in negotiation and have not taken any courses in negotiation. If you are already familiar with negotiation and negotiation theory, please consider taking MG300 instead.

MG209 will develop students’ skills through both formal training and practice. Specifically, this course will introduce students to the strategic, psychological, and cultural aspects of negotiations as well as practical tips gleaned from negotiation research.

This intensive three-week course covers;

  • Distributive negotiation
  • Preparing for a negotiation
  • Integrative negotiation
  • Negotiation styles
  • Ethics, trust, and building a relationship
  • Communication in negotiations: Verbal, nonverbal, and computer-mediated
  • Emotions in negotiations
  • Power and Influence
  • Creativity and problem solving
  • Culture in negotiations
  • Behaviors of skilled negotiators

Language of Instruction: English   

Recommended US semester credits: 3  

AC101: Managerial Accounting and Financial Control

This course analyses perspectives and techniques in accounting and financial control and considers how they are used by modern enterprises to effectively manage in competitive business environments. Its focus is on managerial decision making and the use of accounting and financial management tools under varying strategic and operational market conditions.

The course also looks at performance-based strategic management and accounting issues and considers aspects of international financial management.

Language of Instruction: English   

Course Link

Recommended US semester credits: 3  

AC110 Principles of Accounting

Accounting has been defined as ‘the language of business’. A knowledge of the underlying concepts of accounting, in addition to its procedures, is an essential element in the education of future managers and other professionals. Topics covered will include:

  • The uses of accounting information
  • The nature and function of accounting conventions
  • The preparation of the financial statements of business entities
  • The accounting treatment of assets and liabilities
  • Cash flow statements
  • Accounting for groups
  • Financial statement analysis

Language of Instruction: English   

Recommended US semester credits: 3  

AC215 Business Analysis and Valuation

This course introduces the valuation techniques used by analysts – in corporate finance, equity research, fund management, and strategy consulting – in order to value stocks and firms. It shows how to use financial statements, and more generally business analysis, in order to generate expectations of future performance. It furthermore shows how the value of a stock or a firm in an efficient market reflects expectations of future performance.

More specifically, this course introduces a framework for business analysis and valuation using publicly available information, such as the information contained in financial statements, in order to develop an in-depth analysis of a firm and extract its fundamental value. Much of the course’s emphasis is on case studies.

The framework covers key analysis components such as:

  • business strategy analysis;
  • accounting analysis;
  • financial analysis;
  • prospective analysis.
  • The framework is then applied to a variety of contexts including:
    • valuation;
    • evaluation of mergers and acquisitions.

Each of the topics introduced in this course covers both institutional details and results of relevant academic research. It is furthermore supported by a case study. This course should hence appeal to students interested in corporate finance, equity research, fund management, and strategy consulting.

Language of Instruction: English   

Recommended US semester credits: 3  

EC101 Introductory Microeconomics

This course seeks to introduce microeconomic analysis as a way of understanding the world. It exposes students to standard microeconomic theory with a focus on the development of economic intuition, whilst also providing certain economic tools that support this intuition along the way. The microeconomic mind-set helps students thinking about issues that are relevant empirically and for policy.

Topics covered will include:

  • Consumer behavior
  • Theory of the firm
  • Competitive market equilibrium
  • Monopoly
  • Factor markets
  • General equilibrium theory
  • Welfare economics

Course Outcomes

One of the key outcomes of this course will be discovering when abstract models are useful and when they are not. Students will participate in class-based exercises that will enhance their understanding of these models through active engagement, rather than just passive reading or listening.

The course is aimed primarily at those who have not previously studied economics. It provides a foundation for further study in economics but is sufficiently self-contained to provide grounding for those who do not intend to take the subject any further.

Language of Instruction: English   

Recommended US semester credits: 3  

EC102 Introductory Macroeconomics

This course takes both a short and a long-term view of the economy and aims to help students understand recent developments in macroeconomics using graphic analysis and simple algebra.

It focuses on the stylized facts of business cycle fluctuations, economic growth, and unemployment; discusses what light modern macroeconomics can shed on these facts; and finally evaluates the scope for policy to improve macroeconomic performance.

This first part of the course introduces the building blocks of the macroeconomy and provides an overview of the performance of the economy in the long-run. Topics focus on the determination of national income, the determinants of long-term economic growth, inflation and unemployment and economic pathologies such as persistent unemployment and hyperinflation

Topics list:

  • General equilibrium
  • Money and inflation
  • Labour markets and unemployment
  • Economic growth
  • The open economy

An overview of the behavior of economy in the short term. This part of the course reviews business cycle fluctuations, the design and effects of monetary and fiscal policy, budget deficits and government debt and the open economy.

Topics list:

  • Economic fluctuations and stabilization policy
  • The evolution of stabilization policy
  • Government debt
  • Financial intermediation
  • The credit crunch

The course will conclude with a review of the European Monetary Union and the Euro Crisis, and the Great Recession.

Language of Instruction: English   

Recommended US semester credits: 3  

EC104 The Wealth (and Poverty) of Nations: Historical and Economic Divergence across the Globe

This course considers the most important questions in economic history: How have modern societies become so rich? How has humanity shifted from a centuries-long state in which lives were brutish and short, to a situation today where people live significantly longer and are much better off? Yet, still, why are some countries rich and others poor? Why has this been the case in history, and why is it the case today?

Often, answers to these questions begin with the Industrial Revolution, but recent work across the social sciences makes it increasingly clear that the important antecedents are found further in the past. The course takes students from the Neolithic Revolution to the present day. It will focus on the deep roots of divergence, considering economic and social structures before industrialization, exploring arguments about how and why living standards and economic performance have improved markedly, while at the same time, looking at how development has diverged between different societies and across societies at the same point in time. It endeavours not just to describe these processes, but also to suggest and consider explanations for them.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

EC200 Introduction to Behavior Economics

This course will provide students with a clear introduction to the principles and methods of Behavioural Economics. Behavioral economics considers the ways that people are more social, more impulsive, less adept at using information, and more susceptible to psychological biases than the standard economic models assume. Students will explore key departures, and the consequences for individuals, firms, and policy.

Language of Instruction: English   

Recommended US semester credits: 3  

EC202 Intermediate Macroeconomics

In recent times, macroeconomic questions have once again surged to the forefront of public attention and debate.

This course aims to bring students up-to-date with modern developments in macroeconomic theory and offer fresh perspectives on the macroeconomic challenges of the day.

It is essentially structured around a series of key questions:

  • What are the forces that drive long-term prosperity?
  • Why does economic activity fluctuate?
  • Can and should policymakers seek to ameliorate business cycles?
  • What are the features of financial markets and labor markets that make them special, and how do they interact with the rest of the economy?
  • What is the role of banks and why are they inherently fragile?
  • How should households and firms plan for an uncertain future?
  • What are the implications of increasing globalization of trade and finance for the economy?
  • How should central banks conduct monetary policy?

The approach of this course is to discuss the salient features of the data and then go on to present macroeconomic models to study these issues.

Topics covered include:

  • Macroeconomic measurement and data
  • Labour markets and unemployment
  • Economic growth
  • Consumption and saving
  • Investment
  • Money and banking
  • Business cycles
  • Monetary and fiscal policy
  • International Macroeconomics

Language of Instruction: English   

Recommended US semester credits: 3  

EC212 Introduction to Econometrics

Everyone agrees that evidence-based policy is likely to be more constructive and effective than that based on dogma or fancy. The problem, for those concerned with social or economic policy, is that we seldom have the luxury of being able to undertake controlled experiments of the type conducted by natural scientists. Instead, we have to draw our inferences from the analysis of non-experimental data, and that is the function of econometrics.

This introductory course is intended to serve two constituencies:

  • Professionals: Each year the course is attended by many professionals who have found that the acquisition of econometric skills would be valuable in their work. Included in this category are Ph.D. students, typically in disciplines other than economics, who are including a serious empirical component in their dissertations.
  • Undergraduate students: Many participants are college students from other universities. Those from the US ought to be able to negotiate credit worth at least one semester since the teaching is at the same standard as that for EC220, the regular-year LSE course taken by economics majors, and the course is distinctly more ambitious in both coverage and depth than the typical one-semester introductory econometrics course in the US.

The course is divided into two parts:

Part 1. The first part of this course introduces the statistical tool known as regression analysis applied to cross-sectional data. It begins with the use and properties of the classical linear regression model and then discusses how various technical problems should be handled. Initially, ordinary least squares are the standard technique, but eventually the focus shifts to instrumental variables estimation.

Part 2. The second part of the course discusses the application of the regression model to time series data.

Topics covered include:

  • Simple Regression Analysis
  • Properties of Regression Coefficients and Hypothesis Testing
  • Multiple Regression Analysis
  • Transformation of Variables
  • Specification of Regression Variables
  • Heteroscedasticity
  • Stochastic Regressors and Measurement Errors
  • Simultaneous Equations Estimation
  • Modelling Dynamic Processes
  • Autocorrelation
  • Logit and Probit (binary choice models)

Analytical depth: The material gives emphasis to the analysis of the finite sample and asymptotic properties of least squares and instrumental variables estimators, and the accompanying implications for statistical inference, under different assumptions concerning the data generation process. The derivation of asymptotic results is coupled with the use of simulation methods to establish finite-sample properties. The course contains many proofs in simple contexts.

Mathematical content: The course uses college algebra supplemented by the differential calculus at a basic undergraduate level when it is appropriate and useful. It does not use matrix algebra.

Hands-on: Examples of simple applications in economics are used throughout. Participants use Stata to fit educational attainment and wage equation models with cross-sectional data and EViews to fit demand functions with time series data. Technical support is provided.

Intuitive understanding: In addition to its technical content, the course emphasizes the development of intuitive understanding. The aim is that participants should at all times understand why the material is useful and necessary.

Course Outcomes

The objective of this course is to provide the basic knowledge of econometrics that is essential equipment for any serious economist or social scientist, to a level where the participant would be competent to continue with the study of the subject in a graduate programme.

While the course is ambitious in terms of its coverage of technical topics, equal importance is attached to the development of an intuitive understanding of the material that will allow these skills to be utilized effectively and creatively, and to give participants the foundation for understanding specialized applications through self-study with confidence when needed.

Language of Instruction: English   

Recommended US semester credits: 3  

EC235 Economics of European Integration

This course introduces the main economic aspects of the current development of the European Union (EU) and its policies. The course covers the process of European Integration and its economic impacts on individuals, firms, and regions. Special attention will be devoted to the analysis of the economic opportunities and challenges generated by economic integration, and to the assessment of the policies designed to support this process and mitigate its potential side-effects.

The topics covered will include:

  • The early phase of the EU: trade integration
  • The Single European Act (SEA) and the effects of free movement of persons, capital, goods, and services within the EU
  • Innovation and technological development in the EU
  • The geography of EU income and unemployment disparities: comparing the EU with the US, China, and India
  • How the EU promotes growth and employment: Europe 2020 and Smart Growth Agenda
  • Opportunities and challenges for Multinational Firms in the EU market
  • The Common Agricultural Policy (CAP) and its evolution
  • The EU Regional Policy and its future for the 2014/2020 period
  • EU enlargement, EU Neighbouring Countries, and migration
  • The theory of Optimal Currency Areas (OCA): is the EU an OCA?
  • The European Monetary Union (EMU)
  • Monetary policy in the EU and the Euro
  • European social policy and labor markets
  • Facts and ideas about the ongoing economic crisis

The course will touch on the institutional, political and historical background of European integration, though its main focus is on the economic analysis of the policies and prospects for the European Union. Some recent hot topics in the international policy agenda like rising public debt and the euro crisis will also be covered.

Course outcomes

This course is highly relevant to students and scholars interested in expanding their knowledge of the EU and its economics, but also to policymakers and executives wanting to know more about the opportunities offered by the EU, its markets, and institutions.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

EC240 Environmental Economics & Sustainable Development

Environmental economics is a comparatively young, but by now well-established, branch of economic study. In successfully applying standard microeconomic analysis to the field of the natural environment and sustainable development, economists have challenged many erroneous, but strongly held preconceptions of policy makers and environmentalists alike. For example, the course will show that the efficient level of environmental pollution is, in general, not zero and that there is no risk of running out of fossil fuel non-renewable resources anytime soon.

Conversely, however, policymakers fail to understand the fundamental drivers behind renewable resource extinction (particularly species loss), are over-optimistic when it comes to the environmental consequences of economic growth and insufficiently grasp the obstacles toward achieving strong multilateral agreements for solving international and global environmental problems.

The topics covered will include:

  • Environmental externalities and the theory of market failure
  • Economics of pollution control (the efficient level of environmental pollution, taxes, tradable permits, command-and-control)
  • Economics of natural resource use (non-renewable resources such as oil, gas, and metals as well as renewable resources such as fish and forests)
  • Economics of sustainable development (including the measurement of sustainable development and the effect of economic growth on the environment)
  • Valuation of environmental resources (including cost-benefit analysis)
  • Economics of international environmental problems (including the impact of trade and investment liberalization on the environment)
  • Economics of climate change (including the analytical controversy among environmental economists and a focus on the Kyoto Protocol as the only global agreement on reducing greenhouse gas emissions).

Course Outcomes

This course aims to provide students with a sound knowledge and understanding of the major results of environmental economics. Its intention is to deliver the fundamentals of rigorous economic analysis for continued undergraduate studies at a higher level, or graduate studies in environmental economics.

Language of Instruction: English   

Recommended US semester credits: 3  

EC270 Public Finance

This course provides a broad, up-to-date introduction to the economic analysis of public policy issues. The focus of the course, which draws on microeconomic theory, is on the development of analytical tools and their application to key policy issues relating to the spending, taxing and financing activities of government. Particular emphasis is given to recent developments in public economics, including findings from current research, in areas such as behavioral public economics, new empirical methods, and policy innovations.

The course aims:

  • To give students an appreciation of the analytical methods in economics for the study of the public sector and the role of the state in principle and in practice.
  • To provide a thorough grounding in the principles underlying the role of the state, the design of social insurance and the welfare state and the design of the tax system.
  • To enable students to understand the practical problems involved in implementing these principles.

The course is divided into three parts:

Part 1. An overview of the role of Government.

Part 2. Examining the issues relating to welfare analysis, social insurance, and pensions.

Part 3. Assessing the tax policy and its impact on individuals and companies, while the final part explores the issues of privatization, outsourcing and the proper scope of government.

Topics covered include:

  • Equity, efficiency and the role of the state
  • Behavioral public economics
  • Market failure and social insurance
  • The pensions “crisis” and savings policy
  • Reforming welfare systems
  • The impact of tax incentives and welfare-to-work schemes on unemployment
  • Tax incentives and investment, including cross-border investment
  • Optimal taxation and tax evasion
  • Globalization and tax policy
  • Climate change policy: taxes versus emissions trading
  • Rethinking the scope of government

Course Outcomes

By the end of the course, students should be able to:

  • Discuss critically key issues in public economics, informed by recent research.
  • Present a coherent argument orally and in writing on topics in public economics.
  • Demonstrate a familiarity with a range of policy issues and relevant analytical and empirical tools.

Language of Instruction: English   

EC312 Advanced Econometrics

This course will present an advanced treatment of econometric principles for cross-sectional, panel and time-series data sets. While concentrating on linear models, some non-linear cases will also be discussed, notably limited dependent variable models and generalized methods of moments.

The course focuses on modern econometric techniques, addressing both technical derivations and practical applications. Applications in the areas of microeconomics, macroeconomics, and finance will be considered.

The topics covered will include.

Main Regression

  • Principles of Estimation (Ordinary Least Squares, Generalized Least Squares and Maximum Likelihood Estimation with Micro-Econometric applications)
  • Principles of Testing (t- and F-test; Wald, Likelihood Ratio, Lagrange Multiplier Testing Principles).
  • Time Series: Basic Time Series Processes; Stationarity and Nonstationarity – Unit roots and Cointegration.

Estimation Methodology

  • Endogeneity in linear regression models; Instruments; 2SLS estimator and Generalized IV estimator; Simultaneous equations.
  • Motivation, definition and asymptotic properties of GMM estimator; Efficient GMM estimation; Over-identifying restrictions.
  • Introduction to Panel Data Models: Fixed effect and random effect models.
  • Arellano-Bond estimator in dynamic panel data models.
  • Introduction to Quantile estimation.

Language of Instruction: English   

Recommended US semester credits: 3  

EC320 Applied Econometrics and Big Data

This course will provide a solid grounding in recent developments in applied micro-econometrics, including state-of-the art methods of applied econometric analysis.

The course will combine both analytical and computer-based (data) material to enable students to gain practical experience in analysing a wide variety of econometric problems. It will also discuss how modern data science approaches can be used to answer important economic questions. Students will be reading various applied economic papers which apply the techniques being taught. Applications that will be considered include labour, development, industrial organisation and finance.

The topics include analysis of matching methods, identification of average, local average and marginal treatment effects using instrumental variables, regression discontinuity, randomised control experiments, post-estimation diagnostics, cross section and panel data with static and dynamic models, binary choice models and binary classification methods in machine learning, maximum likelihood estimation, ridge regression, lasso regression, and principal component regression.

Lectures are complemented with computing exercises using real data in R or Stata.

This course is ideal for advanced undergraduate students, graduate students, early-career academic researchers, and researchers in the public, private or non-profit sector.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

FM202 Analysis and Management of Financial Risk

This course helps to develop the relevant knowledge and understanding of risk management practices for students aiming to advance their careers in financial risk management.

The course is roughly divided into four parts:

It starts with an introduction to the classification of risk and the basic principles of diversification and hedging, optimal portfolio choice. This will include an overview of the Capital Asset Pricing Model, which is widely applied for the equilibrium pricing of risks.

Then, the class will discuss the methods to manage market risk for fixed income and equity portfolios. Students will learn about Value at Risk (VaR) and its applications to risk management practices.

Next, students are introduced to the concept of endogenous risks to demonstrate how financial risks originate within the financial system. The course will also highlight behavioral aspects of risk and discuss important limitations of current risk management practices.

Finally, the course turns to credit risk, with a focus on ratings based and structural models. Students also cover credit risk on portfolios and credit derivatives. In the final lecture, students will discuss the recent credit crisis and the ensuing regulatory responses and tie together the various parts of the course.

Topics covered include:

  • Foundations of risk measurement and risk finance theory.
  • Basic risk management instruments: Forwards, futures, swaps, and options.
  • Market risk management: Methods for hedging risk in equity and fixed income portfolios; Delta and Gamma, Duration and Convexity.
  • Value-at-Risk: Definition, implementation, and evaluation of risk forecasts. Alternative risk measures.
  • Credit risk: Merton model, the KMV approach, and ratings based models.
  • Introduction to credit derivatives and mortgage-backed securities.
  • Limitations and failures of risk models.
  • Endogenous risk.
  • Some ideas from behavioral finance: noise trader risk, limits to arbitrage, bubbles.
  • The impact of the credit crisis and its implications for risk management and regulation.

Course Outcomes

The objective of the course is to provide a conceptual framework for thinking about financial risk, covering both theoretical background and practical implementation. In particular, five out of twelve classes will be held in the computer lab in order to demonstrate how the material taught in the course can be used in practice.

Upon completion of the course, students will

  • Have learned the main tools and practices needed to assess and evaluate financial risks.
  • Understand risk management practices in an industry setting.
  • Gain the ability to critically assess risk management reports and research.

Language of Instruction: English   

Recommended US semester credits: 3  

FM225 Fixed Income Securities, Debt Markets, and the Macro Economy

This course helps to develop the relevant knowledge and understanding of fixed income instruments and interest rate models for students aiming for a career in the fixed income field. The course will provide an overview of the major institutions, organizations and investors, and the recent developments in fixed income, covering both theoretical background and practical implementation.

Topics will include:

  • An overview of debt markets with a focus on the US and the UK: players, institutions and various instruments.
  • Organisation and structure of debt markets. Terminology and market conventions. Specific markets: US Treasuries, corporate bonds, agency securities, reports, MBS, etc.
  • Basics of fixed income securities: interest rates and discount factors, the yield curve, coupon and zero coupon bonds.
  • Basics of interest rate risk management: variation in interest rates, duration, convexity, risk measurement, and management. Interest rate risk, liquidity risk, inflation risk, credit risk.
  • Term structure models: binomial trees, risk-neutral pricing, no-arbitrage and pricing of interest rate securities.
  • Monetary policy and the role of the central bank in setting interest rates. Interest rates and inflation. The relationship between interest rates and future economic activity.
  • Fixed-income derivatives: Treasury futures, Eurodollar futures, options, swaps, mortgage-backed securities.
  • Credit derivatives.
  • The 2007-2009 credit crisis.

In this course, students will discuss traditional debt instruments (namely government and corporate bonds) and fixed income derivatives (including mortgage-backed securities), develop the theory for valuing them and study the determinants of risk and return of fixed-income securities. Students will also cover the most important state-of-the-art interest rate models, develop their theoretical underpinnings and provide examples for practical implementation. Students will also discuss the role of fixed-income securities in risk management and introduce the concepts of duration and convexity.

The course will closely look at the interdependencies and the roles of the different players in the debt markets. In particular, students will examine the role of, and the instruments available to the central bank in setting interest rates. The major focus of the course will be on economic intuition and on understanding the products and interrelationships in the fixed income markets. Students will have the opportunity to directly implement the concepts as eight out of twelve classes will be held in the computer lab. Finally, students will relate the course topics to the credit crisis of 2007-2009 and discuss implications for the future of debt markets.

Language of Instruction: English   

Recommended US semester credits: 3  

FM230 Alternative Investments

In the era of significant market turmoil institutional, as well as individual, investors look beyond traditional investment vehicles such as bonds and shares. For example, the price of gold substantially increased in 2009. The purpose of this course is to explore the world of alternative investments such as investments in hedge funds, private equity/venture capital funds, real estate, and commodities, either directly or through funds of funds. This course will combine theory with empirical exercises, allowing students to get a “hands-on” experience. Students will want to see what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

Topics will include:

  • Overview of Alternative Assets
  • Hedge Funds
    • A Hedge Fund Investment Program
    • Due Diligence
    • Risk Management
    • Regulation
    • Funds of Funds
  • Commodities and Managed Futures
    • Investing in Commodity Futures
    • Managed Futures
  • Venture Capital (VC)
    • Raising Funds
    • Valuation of Investments
    • Initial Public Offerings (IPOs)
  • Leveraged Buyouts (LBOs)
    • Financing and Leverage
    • LBO valuation
    • Value Added
    • Exit Strategies
  • Real Estate
    • Real Estate and an Investment Asset
    • Valuation
    • Securitization and Mortgage Backed Securities (MBSs)’
    • Real Estate Investment Trusts (REITs)
    • Demographics

There will also be guest lectures by practitioners from the hedge fund and private equity industries.

The course will combine theory with empirical exercises, allowing students to get a hands-on experience. The course want to identify what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

As part of class work, students will be encouraged to work with data (in Excel). Particular data work will include measuring the risks of investment portfolios, calculating the alphas of hedge fund strategies, evaluating an LBO deal, evaluating a VC deal and pricing an MBS.

Language of Instruction: English   

Recommended US semester credits: 3  

FM250 Finance

This intensive course is designed to deliver a greater understanding of asset markets and corporate finance.

Part 1: Asset-markets

This section offers a unified perspective of modern valuation methods in the context of three important asset classes – fixed income, stocks, and derivatives. The course will then proceed to fixed-income securities, before moving onto stocks, starting with basic notions of risk, return, diversification, and portfolio theory. Capital asset pricing model (CAPM) will be discussed, before examining whether the market values stocks efficiently, or whether there are “abnormal” returns leading to large profits.

Part 2: Corporate Finance

These questions addressed in this part of the course can be divided into two broad sets.

Decisions regarding how to spend funds on alternative investment projects (also known as capital budgeting). Here the course will describe the alternative techniques commonly employed to assess investment opportunities.

How to raise the funds necessary to finance those investments. Firms’ decisions over debt/equity ratios will be analyzed here. This analysis will then be broadened to allow for the possibility that debt/equity choices may affect how firms are run. Incentives to adopt riskier strategies as a function of overall leverage will be considered, as will the debt overhang problem.

In general, the topics covered will include:

  • Net Present Value technique
  • Introduction to portfolio theory
  • The Capital Asset Pricing Model (CAPM)
  • Stock market efficiency
  • Forward and futures contracts, option pricing
  • Investment decisions and the significance of real options
  • Capital structure and dividend decisions
  • Capital restructuring: Initial Public Offerings

Course Outcomes

Students will learn about the theory and application of Financial Securities and Corporate Finance. The course broadly covers financial instruments, such as equity and fixed income and derivative securities, as well as key concepts in Corporate Finance. It will also enhance a student’s understanding of how firms choose their capital structure, conflicts between shareholders and debt holders, payout policy, and initial public offerings.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

FM255 Financial Markets and Portfolio Management

This course is about the characteristics of financial markets and optimal investment strategies. Its aim is to provide a thorough understanding of both the mechanics and the operations of financial markets, whilst paying particular attention to the trading and evaluation of securities in equity and bond markets.

During this intensive course, students will focus on asset pricing, active portfolio management and risk immunization, portfolio performance evaluation, the predictability of returns, dynamic trading strategies, and behavioral finance. Consideration will also be given to recent developments in both the theory and practice of cross-sectional asset pricing and the evaluation of risky securities.

Topics covered include:

  • Time-Varying Expected Returns and Market Efficiency;
  • Optimal portfolio selection (asset allocation and security selection);
  • Risk and return in Equilibrium: The CAPM;
  • Empirical evidence on the capital asset pricing model;
  • Performance of the C-CAPM, the equity premium, and risk-free rate puzzles;
  • Anomalies and trading strategies (size effect, value premium, momentum, reversal, Betting-Against-Beta);
  • Multi-factor models: APT and I-CAPM;
  • Optimal investment strategy when privately informed;
  • Active portfolio management, insurance, and immunization;
  • Organization of financial markets and exchanges;
  • Determinants of bid-ask spreads;
  • Behavioral finance;
  • Bond portfolio management and immunization.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

FM350 Advanced Corporate Finance

This course focuses on theoretical issues which arise in modern corporate finance, and its major theme will be the firm’s capital structure and pay-out decision.

The coruse will see that under certain assumptions, this decision is irrelevant; this is the Modigliani and Miller Theorem. These assumptions will then be loosened to see when it may be better for firms to issue debt versus equity, or to repurchase shares rather than pay out dividends.

In the final part of the course, students will learn about real options and apply this to study the optimal policy of a firm raising capital to finance risky investment.

Topics covered will include:

  • A review of valuations
  • Modigliani and Miller
  • Taxes
  • Recapitalisation
  • Bankruptcy and distress
  • Private Information
  • Dividend policy
  • Optimal capital structure
  • Investment under constraints
  • Real options

Course Outcomes

This course is a broad overview of major topics in Corporate Finance. Students are assumed to have seen many of the topics in earlier courses; however, this course provides more in-depth coverage. The topic of capital structure is covered in FM250 Finance. However, FM250 provides only a brief overview. Advanced Corporate Finance will build on that by taking the decisions of the firm as the main topic. Students will spend significant amounts of time on topics beyond the scope of FM250, such as taxes, bankruptcy, private information, signaling, and real options.

Language of Instruction: English   

Recommended US semester credits: 3  

IR100 Great Thinkers and Pivotal Leaders: Shaping the Global Order

This intensive course takes a historical approach to examining a series of pivotal transitions in the shaping of the global order across the last several centuries. Focusing on some of the world’s most influential thinkers and leaders; from Smith to Keynes; from Napoleon to Churchill and beyond; the course explores the new ideas that ascended, the leaders that defined these orders, and the interaction between the two.

A number of important questions will be examined and addressed, including;

  • What role do ideas play in international relations?
  • To what extent can individual leaders shape the global order?
  • Do circumstances determine which ideas and which leaders come to the fore? Or do individuals make their own history?
  • What does this history reveal that might help us to shape international politics today and in the future?

This course considers an international order from the standpoint of both international security and international political economy. It presumes no experience in either field or the social sciences more generally. As such, it is ideal for students who want a rigorous introduction to international politics. It will also appeal to students who want to delve deeper into the history and evolution of the international system.

The course is divided into six modules:

1. War Economies

  • John Locke and the birth of the Fiscal-Military State
  • Adam Smith’s influence on the American Revolutionary War

2. Revolutionaries

  • Napoleon’s ‘Armed Doctrine’
  • The Economist and the Apogee of Free Trade
  • Marx in the Russian Revolution

3. The World at War: Reordering International Politics

  • The Interwar Collapse and the Rise of John Maynard Keynes
  • Decolonization: Gandhi versus Churchill

4. Cold Warriors

  • The Anglo-American Postwar System: Keynes versus White
  • George Kennan’s Cold War

5. Competing Development Models

  • Raúl Prebisch and Import Substitution Industrialisation
  • Milton Friedman, ‘The Chicago Boys’, and Export Oriented Industrialization

6. Neoconservatives and the War on Terror

  • Condoleezza Rice’s National Security Strategy

While some familiarity with these figures and topics is valuable, the course assumes no prior expertise or training. Students, however, should appreciate that the course will challenge them to engage a variety of materials across a range of substantive issue areas–all of which is rich but much of which is challenging.

Course Outcomes

By the end of this course, students should have:

  • An understanding of several of the most significant shifts in international relations across the last several centuries
  • Familiarity with those intellectuals and political figures who are reputed to have shaped these shifts
  • Their own well-articulated and defensible view about the relationship between ideas and policy in international relations

Language of Instruction: English   

Recommended US semester credits: 3  

IR102 Capitalism, Democracy, and Equality: The Political Economy of the Advanced Nations

This course introduces students to the complex and conflictual relationship between democracy and capitalism in the advanced market economies (North America, Europe, Australasia and Japan). The focus of the course is on the different ways in which democratic states have sought to promote economic growth and redistribute resources in favor of different political interests. The course presents some key concepts and theories of comparative political economy and uses them to compare institutions, policies, and outcomes across countries and over time.

The aim is to understand why some advanced countries have grown faster than others, why some are less equal than others, why countries have addressed common international pressures in such different ways, and how they have responded to the current crisis. Key areas of inquiry include the growth of the public sector, the structure of the welfare state, the role of electoral and party politics, the politics of monetary and fiscal policy, the distribution of income and capital, and the consequences of the current crisis.

Language of Instruction: English   

Recommended US semester credits: 3  

IR105 Understanding Foreign Policy: the Diplomacy of War, Profit, and Justice

This course examines the key concepts and schools of thought in the study of foreign policy. Concentrating on the process of decision making, internal and external factors which influence foreign policy and the instruments available to foreign policy decision-makers, the course will provide an understanding of the role and effect that foreign policy has on international politics. Students will learn about the different strategies that great powers and small states employ in achieving their aims; the foreign policy challenges posed by terrorism, rogue and failed states; and the significance of new foreign policy powers like China. The classes will combine a discussion of these theories with their application to selected countries in the North, and South, international organizations and transnational actors.

The principal themes to be addressed by the course are:

  • How do states formulate and implement their foreign policy?
  • Does leadership make a difference in successful foreign policy?
  • Can national foreign policies ever be ethical?
  • What can states and international organizations do to prevent common threats like terrorism, nuclear proliferation, and climate change?
  • Are democracies more likely to pursue aggressive foreign policies than dictatorships?
  • How are the foreign policies of emerging powers reshaping the practices, structure, and institutions of the international system?

Each of the lectures will be followed by a discussion seminar on a topic drawn from the lecture and readings. Active student participation is encouraged.

Language of Instruction: English   

Recommended US semester credits: 3  

IR207 Development in the International Political Economy

This course is an introduction to International Development. It examines the politics and the institutional framework for social and economic development. For developing countries, the national and international contexts interact to set constraints on development and determine possible avenues of growth. Specific issues like economic growth, international debt, aid, poverty, and environment are increasingly a matter of negotiation amongst domestic interest groups and interaction between government and international institutions.

The course will also look at the impact of economic globalization, international trade, and the emerging role of civil society and international investment in development. The inter-connection between economic development and social and political issues like democratization, governance, poverty, human rights, gender, famine, environmental issues, climate change and armed conflict is examined, as well as the role of international organizations such as the World Bank, the United Nations, and the World Trade Organization.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

IR214 Public Policy Analysis

How do politics and institutions shape public policy? How and why does policy change? How does bureaucracy work (or not), and how might it be reformed? This course addresses these questions using theories and methods of public policy analysis, with a global scope.

This course is an introduction to theories, approaches, and methods for public policy analysis. These include how politics and institutions shape public policy, the processes of public policy change, and the challenges of public sector management. The scope of the course is global, with applications and examples from countries around the world.

The course will introduce students to fundamental social-scientific concepts like power, collective action, institutions, and accountability, as well as tools useful for evaluating policy impact and effectiveness. The course will enable students to understand the tradeoffs involved in the design of policies and institutions; the influence of factors like partisanship, policy ideas, information technology, and globalization; as well as reforms that attempt to improve government efficiency, representation, and transparency. The course will also give students the conceptual tools to be able to analyze specific policy issue areas of their interest, and understand the complex forces that shape policy change.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

LL200 Competition Law and Policy: Controlling Private Power

Competition law involves, essentially, the use of legal tools to control the exercise of market power by economic actors, in order to protect the competitive forces within the market. The competition rules present a powerful set of tools for public enforcement agencies—and, indeed, private litigants—to prevent and sanction harmful instances of private power.

This course provides a comprehensive overview of the structure and substance of the EU competition rules, examining both the current legal framework and the underlying competition policy considerations which have informed its application and development.

At its core, the EU competition framework incorporates three key provisions:

  • Article 101 TFEU, which prohibits anti-competitive agreements and other forms of coordination between economic actors;
  • Article 102 TFEU, which prohibits the abuse of market power held by an economic entity which holds a dominant position in the market; and
  • EU Merger Regulation (EUMR), which prohibits mergers and other concentrations which would significantly impede effective competition in the internal market.

EU competition law is, moreover, enforced under a distinctive and multi-faceted system which involves centralized enforcement by the European Commission, decentralized enforcement by the national competition authorities of the Member States, and a growing emphasis on private enforcement via antitrust damages actions brought by ‘private attorneys general’.

This course aims to provide participants with a comprehensive understanding of the core rules and principles that underpin the EU competition system, alongside broader competition policy considerations. It does so through a systematic examination and assessment of each of these three areas of substantive competition law, as well as an exploration of the enforcement context plus the wider policy landscape. Although the course focuses primarily on the competition rules of the EU, comparative analysis to other jurisdictions—particularly the US—will be made where appropriate.

Throughout the course, an emphasis is placed upon the crucial, and often controversial, the question as to whether and when competition law should be deployed to control private power within the market and society more generally. The course thus aims to equip participants with both a strong technical knowledge of EU competition law and the ability to engage with and critique issues of competition policy.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

LL204 Cyberlaw

This course covers a selection of topics in the field of Information Technology and the Law (or Cyberlaw). It will begin by considering the debate about the nature of the influence of information technology upon the development of new legal doctrine, moving on to consider, through topics such as data protection, computer misuse and computer evidence, copyright and digital rights management, criminal content liability and defamation, both how the law has responded to the challenges of information technologies, and the extent to which legal issues have shaped the development of information society policy.

The focus will be initially on English law, although the global nature of IT law means that there is strong EU, Commonwealth, and US legal influence upon the English system, so comparative aspects will be introduced, and readings will include materials drawn from, amongst others, US law journals.

This course does not require an in-depth understanding of information technology – rather, it is primarily interested in the implications of the use of information technology, and the intended and unintended consequences of regulating that use.

Course outcomes

At the end of the course, students should be able to:

  • Critically evaluate ongoing developments in the law relating to information technologies.
  • Display an understanding of how these developments relate to one another.
  • Examine areas of the doctrinal and political debate surrounding rules and theories.
  • Evaluate those rules and theories in terms of internal coherence and practical outcomes.
  • Draw on the analysis and evaluation contained in primary and secondary sources.

Language of Instruction: English   

Recommended US semester credits: 3  

LL206 International Financial Law

This course offers a cross-sectoral analysis covering financial market transactions in commercial banking, insurance, derivatives, capital markets and asset management. It allows participants to grasp the big picture of the legal underpinnings of financial transactions and to understand how risk in the financial market is entered, managed, dispersed and shifted. The course analyses and compares the legal basis of financial transactions in both Common law and Civil law jurisdictions. The focus is mainly on broad principles and policy issues rather than a detailed examination of the statute, case law and drafting in order to allow students from all jurisdictions to take home valuable knowledge directly applicable to their respective jurisdictions.

Course structure

– Introduction

  • Logic and players of the financial market
  • Overview of types of financial transactions
  • Reasoning and sources of financial law
  • The types of risk and the role of financial law
  • European and global legal and regulatory architecture

– Raising capital: taking risk

  • The nature of banks, deposit-taking, loans, syndicated loans
  • Issuance of debt securities, Eurobonds, and equity
  • Investment funds
  • Transfer by assignment and novation

– Mitigating risk (I): personal surety and derivatives

  • Guarantee and insurance
  • Derivatives and credit default swaps
  • Cross-comparison and the risk of re-characterization

– Mitigating risk (II): asset-backing

  • Security interests
  • Financial Collateral
  • Repurchase agreements and securities lending

– Mitigating risk (III): risk reduction

  • Set off
  • Close-out netting
  • Multilateral clearing

– Cross-jurisdictional analysis

  • Private international law analysis in financial law
  • Cross-border collateral
  • Cross-jurisdictional netting
  • Common patterns and difficulties

Who should sign up for this course?

This course is designed to be of both high academic and direct practical value. It appeals to students preparing for a career in financial markets as well as to practitioners wishing to broaden their horizon. It will be of particular interest for the

  • Private financial sector (management, compliance, legal, governmental and international affairs, etc)
  • Legal practice specializing in the above-mentioned activities
  • Government and governmental agencies (policymakers from treasuries, ministries of economy/finance/justice, foreign office, etc.)
  • Central banks (management, legal, regulation and oversight, international affairs, etc.)
  • International organization and EU organs and agencies (policymakers, strategy, legal, international affairs, etc.)
  • Non-governmental organizations and advocacy groups active in the field of international financial marketsStudents interested in any of the above, or pursuing a masters programme related to financial markets

Learning outcome

  • Understand how risk is created and managed by using different types of legal arrangements.
  • Get to know the difficulties in making these arrangements insolvency proof and robust in times of financial crisis.
  • Understand the legal difficulties that flow from the international character of the financial market.

This course is a good match with LL207 International Financial Regulation, which concerns the public law side of financial markets. In combination, these courses provide the full picture of financial markets law and regulation. However, both courses are self-contained.

Language of Instruction: English   

Recommended US semester credits: 3  

LL301 Corporate Finance Law

This course examines the legal aspects of corporate finance.

In this module we will analyse the legal aspects of corporate finance. There are three primary components of this module. The first component is an introduction to corporate finance theory, which covers the nature of equity and debt as well as an introduction to theories of capital structure and valuation. The second part of the module covers the nature and regulation of legal capital, including minimum capital and the regulation of dividends and share buy-backs. The third part of the module addresses the issuance of debt and equity, related aspects of securities regulation, such as insider trading and disclosure regulation, as well as mergers & acquisitions.

The module’s primary focus is on UK and EU law and regulation. However, the module will also draw on the approaches to regulation in other jurisdictions, such as the United States and Germany.

Language of Instruction: English   

Recommended US semester credits: 3  

ME117 Further Statistics for Economics and Econometrics

This course provides a precise and accurate treatment of probability, distribution theory and statistical inference.

As such there will be a strong emphasis on mathematical statistics as important discrete and continuous probability distributions are covered (such as the Binomial, Poisson, Uniform, Exponential and Normal distributions). Properties of these distributions will be investigated including the use of the moment generating function.

Point estimation techniques are discussed including the method of moments, maximum likelihood, and least squares estimation. Statistical hypothesis testing and confidence interval construction follow, along with non-parametric and goodness-of-fit tests and contingency tables. A treatment of linear regression models, featuring the interpretation of computer-generated regression output and implications for prediction, rounds off the course.

Collectively, these topics provide a solid training in statistical analysis. As such, this course would be of value to those intending to pursue further study in statistics, econometrics and/or empirical economics. Indeed, the quantitative skills developed by the course are readily applicable to all fields involving real data analysis.

Language of Instruction: English   

Recommended US semester credits: 3  

ME201 Optimization with Applications in Portfolio Choice

The aim of this course is to impart knowledge and develop an understanding of optimization theory. Although the emphasis is placed on problems of optimal investment and consumption, the techniques developed are applicable to problems arising in economics and several other areas.

What is the best composition of assets in a portfolio? What is the minimal amount of fuel needed to launch a spacecraft to orbit? How much daily exercise is optimal? These seemingly unrelated questions have one thing in common: to answer them one has to optimize. Optimization permeates our daily life, and the ability to act optimally distinguishes success from failure. This is especially true in the world of finance, where bankruptcy may be the result of wrong investment decisions.

The course explores theoretical and numerical approaches to solving static constrained and unconstrained as well as dynamic optimization problems. The theory covered is exemplified by applications such as the Markowitz portfolio selection problem and the Merton optimal investment problem. To introduce the optimal investment problem, the multi-period binomial tree model for a financial market is introduced and the concepts of arbitrage and self-financing portfolios are discussed.

The course is relevant to students pursuing a degree in a quantitative subject who are interested in finance, as well as to students majoring in finance or economics who want to hone their quantitative skills. The course is largely self-contained and the relevant mathematical background, such as elementary probability theory and property of functions will be thoroughly reviewed.

Language of Instruction: English   

Recommended US semester credits: 3  

ME306 Real Analysis

Real analysis is the area of mathematics dealing with real numbers and the analytic properties of real-valued functions and sequences. In this course, we shall develop concepts such as convergence, continuity, completeness, compactness, and convexity in the settings of real numbers, Euclidean spaces, and more general metric spaces.

Real analysis is part of the foundation for further study in mathematics as well as graduate studies in economics. A considerable part of economic theory is difficult to follow without a strong background in real analysis. For example, the concepts of compactness and convexity play an important role in optimization theory and thus in microeconomics.

This course in real analysis is designed to meet the needs of economics students who are planning to study at postgraduate level as well as professionals who need to follow developments in economic analysis and research.

Language of Instruction: English   

Recommended US semester credits: 3  

ME315 - Machine Learning in Practice

Increased adoption of such technology across the world has driven massive growth in the volume of data, requiring businesses to harness the power of machine learning to make decisions, learn about and predict customer behaviour to drive strategic advantage.

Combining the fields of engineering, statistics, mathematics and computing, machine learning is one of the leading data science methodologies revolutionising business. This course will cover a wide range of machine learning methods, both model-based and algorithmic. Presenting the theoretical foundations of these methodologies, you will have an opportunity to apply them using real-world examples and datasets.

Recommended US semester credits: 3  

MG101 Marketing

Peter Drucker, the father of business consulting once famously remarked, “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation.” In today’s highly competitive business environment these words ring even truer: a well-designed marketing strategy can make all the difference between success and failure in the marketplace.

Marketing, ultimately, is about understanding and shaping behavior. Accordingly, banks and other financial institutions, as well as governmental, medical, and not-for-profit organizations–from those that design and sell financial products, to those that implement public policy (e.g., those dedicated to reducing drunk driving, increasing literacy, and encouraging safe contraception), have all found that a well-thought-out marketing strategy can be a critical arbiter of success even in this “ideas marketplace.”

Topics covered include:

  • Introduction to marketing and marketing frameworks
  • Consumer behavior
  • Marketing research (quantitative and qualitative approaches)
  • Segmentation, targeting & positioning strategies
  • New and existing products
  • Distribution decisions
  • Pricing decisions and strategies
  • Promotion, advertising and communication strategies
  • Business and industrial marketing
  • International marketing

This course will combine LSE’s premier standing in the social sciences with cutting-edge management practices. By using a wide range of quantitative as well as qualitative methods, interactive lectures, videos, hands-on exercises, and case studies, students will develop an understanding of key analytical frameworks and tools that are essential to a good marketing strategy.

Language of Instruction: English   

Recommended US semester credits: 3  

MG103 Consumer Behavior: Behavior Fundamentals for Marketing and Management

For many companies, non-profit organizations, and political figures, success relies on understanding the “consumers.” What is it that they really want, and why? What information will they attend to, and what will they ignore? How do they make decisions, why do they sometimes make bad ones, and how can we help them make better ones? It can be tempting to answer these questions intuitively, based on one’s own experiences as a consumer. However, intuitions about human psychology are often wrong.

The course will provide an introduction to the basic theories for understanding consumer behavior. Different from traditional business management courses which often skim, we dig deeper into all the fundamental psychological theories so that students have a thorough understanding of the root theories on which many consumer insights are based.

Using a variety of methods, students will cover fundamental research pertaining to all four stages of the consumer experience;

  • Seeking and acquiring information
  • Evaluating this information and using it to form attitudes and make decisions
  • Translating those attitudes and decisions into behavior (or not)
  • Assessing past experiences and using the assessment to inform future behavior.

The course will use concrete business case studies and examples (e.g. from the NYT, WSJ, FT, BBC and other current sources) for illustration and to apply the theories under examination. Since these theories apply equally to individual and group decision making situations, the material provides a useful framework for understanding related issues like managerial decision making as well as consumer behavior.

Course Outcomes

By the end of the course, students will be able to:

  • Describe the key components of the decision-making process
  • Illustrate the influences on how people acquire information, form attitudes, make choices, translate those choices into behavior, and evaluate their experiences
  • Predict what people will do in various situations, using major theories of behavior
  • Understand the role of changing technologies (e.g. social media) in shaping how marketers respond to consumers.

This course should be especially useful to people without the extensive previous study of psychology.

Language of Instruction: English   

Recommended US semester credits: 3  

MG106 Strategic Management

This course is an introduction to the field of Strategic Management. It covers the key concepts and theories in the field and how they can be applied to real business situations.

The main objective is to learn how to formulate and implement successful strategies that grant a competitive advantage to a firm, where a strategy is a plan that guides managerial decisions. The theoretical background is founded on the “resource-based view” of the firm and its complementarity to microeconomic theory, game theory, and organizational theory.

Topics covered include:

  • The business model of the firm
  • Industry structure and strategic interactions
  • Value creation and competitive advantage
  • Strategic resources
  • Dynamic capabilities
  • Diversification and synergies

The course is illustrated with thought-provoking case studies about real companies in various industries.

Course outcomes

The objective of the course is to illustrate how strategic management supports companies in achieving competitive advantage. At the end of the course students should be able to:

  • Efficiently structure a competitive situation amidst an excess of data
  • Use analytical reasoning to evaluate competitive scenarios
  • Critically evaluate strategic alternatives for a firm
  • Recognize competitive patterns among firms in the global economy

Language of Instruction: English   

Recommended US semester credits: 3  

MG110 The Science and Art of Decision Making

How to choose in tough situations where stakes are high, and there are multiple conflicting objectives? What are the common ‘decision traps’ we fall into and how can we avoid them? Why do projects often take us longer and cost more than planned, and how should we get rid of this problem? How do we perceive risk, and how to act when there are risks and uncertainties involved in a decision? How can we create options that are better than the ones originally available?

Decision making is a central aspect of both everyday life and any business activity. The ability to understand how decisions are made, and to predict, guide and improve those decisions will be an invaluable part of every change maker’s toolbox. It is this ability that will be developed in this course, which introduces students to insights from behavioral science and decision analytics and its application to management and policy making.

Our journey will begin with an exploration of systematic biases and errors, to raise your awareness about these “traps” with a view to becoming a better intuitive decision maker. The adventure will continue with the discovery of both qualitative and quantitative solutions, that will equip you with a key analytical framework for successful strategic decisions.

Note: This course focuses on behavioral decision science. Students who are more interested in behavioral economics should consider EC200. Moreover, this course is an introductory course, tailored for undergraduates, or new graduates. If you are already familiar with decision science concepts and theories, or if you already have a few years of professional expertise, you are welcome instead to apply to the executive course Strategic Decision Making taught on the LSE Executive Education program.

Recommended US semester credits: 3-4   Contact Hours: 7.5

MG204 Leadership in Organizations

This course is designed to provide students with the knowledge, skills, and analytical capabilities needed to practice excellent leadership within modern organizations.

The course explores the very nature of leadership. It addresses how individuals effectively build agreement to shared goals and courses of action, and also then facilitate organizational movement toward the achievement of these goals.

In particular, the course highlights theory and research that accounts for how leaders acquire and exercise social influence in a manner that contributes to their credibility and the motivation of their followers. It also makes note of individual differences in leader behavior and examines in what instances situations determine the salience of these differences. The emphasis of this intensive three weeks of study is on the application of theory, comparing and contrasting ideas, self-reflection, and self-discovery of one’s own leadership potential and strengths.

Topics covered include:

  • Introduction to leadership in organizations
  • Influence and power
  • Insights into human motivation
  • Individual differences and leadership
  • Transformational leadership
  • Leadership communication
  • Building effective leader-member relationships
  • Shared leadership and team working
  • Leaders and social networks
  • Leading change

Course outcomes:

  • Understand the multidisciplinary origins of leadership theory.
  • Increase students’ ability to critically evaluate the relevance of different theories depending on the situation and to apply these theories accordingly.
  • Develop the ability to analyze one’s own leadership style and to critically assess one’s own leadership effectiveness.

Language of Instruction: English   

Recommended US semester credits: 3  

MG206 Business Strategy in International Markets

This course is an introduction to strategic management of global firms. It studies the patterns of business globalisation and analyses successful strategies of firms facing the challenges imposed by the international integration of markets and production processes.

Topics include the changing structure of industries and the response of companies, both those based in the advanced industrial countries and those based in emerging markets, to increasing international competition and opportunities opened by international integration in terms of markets and efficiency gains. The content of the course reflects the increasing role played by emerging economies in international markets.

The issues will be approached by integrating conceptual, empirical and case methods. Particular emphasis will be placed on bringing these different perspectives together. The format of the course is highly participatory and interactive, and will involve a combination of case studies, interactive exercises, discussions and readings.

Language of Instruction: English   

Recommended US semester credits: 3  

MG220 Corporate and Organizational Strategy

This course is an introduction to the strategic management of modern diversified firms. It studies how the firm’s portfolio of products and its internal organization can be designed to maximize corporate performance.

The course addresses the following questions facing modern managers:

  • What products and businesses should the firm focus on?
  • What activities should be subcontracted and which should be carried out inside the firm?
  • How should the firm be organized internally to coordinate and motivate employees, managers, and other stakeholders?
  • What are the consequences of providing workers and managers with performance pay?
  • What is corporate culture, and does a strong culture affect the way that an organization reacts to changes in the environment?
  • What are the decision-making and integration challenges arising in mergers and acquisitions?
  • What makes strategic alliances valuable and stable?

The issues will be approached by integrating conceptual, empirical and case methods. Particular emphasis will be placed on bringing these different perspectives together. The course will only require basic mathematical knowledge but will call for rigorous reasoning. In the classes, students are expected to make presentations and to participate actively in the discussions.

Language of Instruction: English   

Recommended US semester credits: 3  

AC101: Managerial Accounting and Financial Control

This course analyses perspectives and techniques in accounting and financial control and considers how they are used by modern enterprises to effectively manage in competitive business environments. Its focus is on managerial decision making and the use of accounting and financial management tools under varying strategic and operational market conditions.

The course also looks at performance-based strategic management and accounting issues and considers aspects of international financial management.

Language of Instruction: English   

Course Link

Recommended US semester credits: 3  

AC215 Business Analysis and Valuation

This course introduces the valuation techniques used by analysts – in corporate finance, equity research, fund management, and strategy consulting – in order to value stocks and firms. It shows how to use financial statements, and more generally business analysis, in order to generate expectations of future performance. It furthermore shows how the value of a stock or a firm in an efficient market reflects expectations of future performance.

More specifically, this course introduces a framework for business analysis and valuation using publicly available information, such as the information contained in financial statements, in order to develop an in-depth analysis of a firm and extract its fundamental value. Much of the course’s emphasis is on case studies.

The framework covers key analysis components such as:

  • business strategy analysis;
  • accounting analysis;
  • financial analysis;
  • prospective analysis.
  • The framework is then applied to a variety of contexts including:
    • valuation;
    • evaluation of mergers and acquisitions.

Each of the topics introduced in this course covers both institutional details and results of relevant academic research. It is furthermore supported by a case study. This course should hence appeal to students interested in corporate finance, equity research, fund management, and strategy consulting.

Language of Instruction: English   

Recommended US semester credits: 3  

MG103 Consumer Behavior: Behavior Fundamentals for Marketing and Management

For many companies, non-profit organizations, and political figures, success relies on understanding the “consumers.” What is it that they really want, and why? What information will they attend to, and what will they ignore? How do they make decisions, why do they sometimes make bad ones, and how can we help them make better ones? It can be tempting to answer these questions intuitively, based on one’s own experiences as a consumer. However, intuitions about human psychology are often wrong.

The course will provide an introduction to the basic theories for understanding consumer behavior. Different from traditional business management courses which often skim, we dig deeper into all the fundamental psychological theories so that students have a thorough understanding of the root theories on which many consumer insights are based.

Using a variety of methods, students will cover fundamental research pertaining to all four stages of the consumer experience;

  • Seeking and acquiring information
  • Evaluating this information and using it to form attitudes and make decisions
  • Translating those attitudes and decisions into behavior (or not)
  • Assessing past experiences and using the assessment to inform future behavior.

The course will use concrete business case studies and examples (e.g. from the NYT, WSJ, FT, BBC and other current sources) for illustration and to apply the theories under examination. Since these theories apply equally to individual and group decision making situations, the material provides a useful framework for understanding related issues like managerial decision making as well as consumer behavior.

Course Outcomes

By the end of the course, students will be able to:

  • Describe the key components of the decision-making process
  • Illustrate the influences on how people acquire information, form attitudes, make choices, translate those choices into behavior, and evaluate their experiences
  • Predict what people will do in various situations, using major theories of behavior
  • Understand the role of changing technologies (e.g. social media) in shaping how marketers respond to consumers.

This course should be especially useful to people without the extensive previous study of psychology.

Language of Instruction: English   

Recommended US semester credits: 3  

MG106 Strategic Management

This course is an introduction to the field of Strategic Management. It covers the key concepts and theories in the field and how they can be applied to real business situations.

The main objective is to learn how to formulate and implement successful strategies that grant a competitive advantage to a firm, where a strategy is a plan that guides managerial decisions. The theoretical background is founded on the “resource-based view” of the firm and its complementarity to microeconomic theory, game theory, and organizational theory.

Topics covered include:

  • The business model of the firm
  • Industry structure and strategic interactions
  • Value creation and competitive advantage
  • Strategic resources
  • Dynamic capabilities
  • Diversification and synergies

The course is illustrated with thought-provoking case studies about real companies in various industries.

Course outcomes

The objective of the course is to illustrate how strategic management supports companies in achieving competitive advantage. At the end of the course students should be able to:

  • Efficiently structure a competitive situation amidst an excess of data
  • Use analytical reasoning to evaluate competitive scenarios
  • Critically evaluate strategic alternatives for a firm
  • Recognize competitive patterns among firms in the global economy

Language of Instruction: English   

Recommended US semester credits: 3  

MG110 The Science and Art of Decision Making

How to choose in tough situations where stakes are high, and there are multiple conflicting objectives? What are the common ‘decision traps’ we fall into and how can we avoid them? Why do projects often take us longer and cost more than planned, and how should we get rid of this problem? How do we perceive risk, and how to act when there are risks and uncertainties involved in a decision? How can we create options that are better than the ones originally available?

Decision making is a central aspect of both everyday life and any business activity. The ability to understand how decisions are made, and to predict, guide and improve those decisions will be an invaluable part of every change maker’s toolbox. It is this ability that will be developed in this course, which introduces students to insights from behavioral science and decision analytics and its application to management and policy making.

Our journey will begin with an exploration of systematic biases and errors, to raise your awareness about these “traps” with a view to becoming a better intuitive decision maker. The adventure will continue with the discovery of both qualitative and quantitative solutions, that will equip you with a key analytical framework for successful strategic decisions.

Note: This course focuses on behavioral decision science. Students who are more interested in behavioral economics should consider EC200. Moreover, this course is an introductory course, tailored for undergraduates, or new graduates. If you are already familiar with decision science concepts and theories, or if you already have a few years of professional expertise, you are welcome instead to apply to the executive course Strategic Decision Making taught on the LSE Executive Education program.

Recommended US semester credits: 3-4   Contact Hours: 7.5

MG204 Leadership in Organizations

This course is designed to provide students with the knowledge, skills, and analytical capabilities needed to practice excellent leadership within modern organizations.

The course explores the very nature of leadership. It addresses how individuals effectively build agreement to shared goals and courses of action, and also then facilitate organizational movement toward the achievement of these goals.

In particular, the course highlights theory and research that accounts for how leaders acquire and exercise social influence in a manner that contributes to their credibility and the motivation of their followers. It also makes note of individual differences in leader behavior and examines in what instances situations determine the salience of these differences. The emphasis of this intensive three weeks of study is on the application of theory, comparing and contrasting ideas, self-reflection, and self-discovery of one’s own leadership potential and strengths.

Topics covered include:

  • Introduction to leadership in organizations
  • Influence and power
  • Insights into human motivation
  • Individual differences and leadership
  • Transformational leadership
  • Leadership communication
  • Building effective leader-member relationships
  • Shared leadership and team working
  • Leaders and social networks
  • Leading change

Course outcomes:

  • Understand the multidisciplinary origins of leadership theory.
  • Increase students’ ability to critically evaluate the relevance of different theories depending on the situation and to apply these theories accordingly.
  • Develop the ability to analyze one’s own leadership style and to critically assess one’s own leadership effectiveness.

Language of Instruction: English   

Recommended US semester credits: 3  

MG206 Business Strategy in International Markets

This course is an introduction to strategic management of global firms. It studies the patterns of business globalisation and analyses successful strategies of firms facing the challenges imposed by the international integration of markets and production processes.

Topics include the changing structure of industries and the response of companies, both those based in the advanced industrial countries and those based in emerging markets, to increasing international competition and opportunities opened by international integration in terms of markets and efficiency gains. The content of the course reflects the increasing role played by emerging economies in international markets.

The issues will be approached by integrating conceptual, empirical and case methods. Particular emphasis will be placed on bringing these different perspectives together. The format of the course is highly participatory and interactive, and will involve a combination of case studies, interactive exercises, discussions and readings.

Language of Instruction: English   

Recommended US semester credits: 3  

EC102 Introductory Macroeconomics

This course takes both a short and a long-term view of the economy and aims to help students understand recent developments in macroeconomics using graphic analysis and simple algebra.

It focuses on the stylized facts of business cycle fluctuations, economic growth, and unemployment; discusses what light modern macroeconomics can shed on these facts; and finally evaluates the scope for policy to improve macroeconomic performance.

This first part of the course introduces the building blocks of the macroeconomy and provides an overview of the performance of the economy in the long-run. Topics focus on the determination of national income, the determinants of long-term economic growth, inflation and unemployment and economic pathologies such as persistent unemployment and hyperinflation

Topics list:

  • General equilibrium
  • Money and inflation
  • Labour markets and unemployment
  • Economic growth
  • The open economy

An overview of the behavior of economy in the short term. This part of the course reviews business cycle fluctuations, the design and effects of monetary and fiscal policy, budget deficits and government debt and the open economy.

Topics list:

  • Economic fluctuations and stabilization policy
  • The evolution of stabilization policy
  • Government debt
  • Financial intermediation
  • The credit crunch

The course will conclude with a review of the European Monetary Union and the Euro Crisis, and the Great Recession.

Language of Instruction: English   

Recommended US semester credits: 3  

EC200 Introduction to Behavior Economics

This course will provide students with a clear introduction to the principles and methods of Behavioural Economics. Behavioral economics considers the ways that people are more social, more impulsive, less adept at using information, and more susceptible to psychological biases than the standard economic models assume. Students will explore key departures, and the consequences for individuals, firms, and policy.

Language of Instruction: English   

Recommended US semester credits: 3  

EC202 Intermediate Macroeconomics

In recent times, macroeconomic questions have once again surged to the forefront of public attention and debate.

This course aims to bring students up-to-date with modern developments in macroeconomic theory and offer fresh perspectives on the macroeconomic challenges of the day.

It is essentially structured around a series of key questions:

  • What are the forces that drive long-term prosperity?
  • Why does economic activity fluctuate?
  • Can and should policymakers seek to ameliorate business cycles?
  • What are the features of financial markets and labor markets that make them special, and how do they interact with the rest of the economy?
  • What is the role of banks and why are they inherently fragile?
  • How should households and firms plan for an uncertain future?
  • What are the implications of increasing globalization of trade and finance for the economy?
  • How should central banks conduct monetary policy?

The approach of this course is to discuss the salient features of the data and then go on to present macroeconomic models to study these issues.

Topics covered include:

  • Macroeconomic measurement and data
  • Labour markets and unemployment
  • Economic growth
  • Consumption and saving
  • Investment
  • Money and banking
  • Business cycles
  • Monetary and fiscal policy
  • International Macroeconomics

Language of Instruction: English   

Recommended US semester credits: 3  

EC240 Environmental Economics & Sustainable Development

Environmental economics is a comparatively young, but by now well-established, branch of economic study. In successfully applying standard microeconomic analysis to the field of the natural environment and sustainable development, economists have challenged many erroneous, but strongly held preconceptions of policy makers and environmentalists alike. For example, the course will show that the efficient level of environmental pollution is, in general, not zero and that there is no risk of running out of fossil fuel non-renewable resources anytime soon.

Conversely, however, policymakers fail to understand the fundamental drivers behind renewable resource extinction (particularly species loss), are over-optimistic when it comes to the environmental consequences of economic growth and insufficiently grasp the obstacles toward achieving strong multilateral agreements for solving international and global environmental problems.

The topics covered will include:

  • Environmental externalities and the theory of market failure
  • Economics of pollution control (the efficient level of environmental pollution, taxes, tradable permits, command-and-control)
  • Economics of natural resource use (non-renewable resources such as oil, gas, and metals as well as renewable resources such as fish and forests)
  • Economics of sustainable development (including the measurement of sustainable development and the effect of economic growth on the environment)
  • Valuation of environmental resources (including cost-benefit analysis)
  • Economics of international environmental problems (including the impact of trade and investment liberalization on the environment)
  • Economics of climate change (including the analytical controversy among environmental economists and a focus on the Kyoto Protocol as the only global agreement on reducing greenhouse gas emissions).

Course Outcomes

This course aims to provide students with a sound knowledge and understanding of the major results of environmental economics. Its intention is to deliver the fundamentals of rigorous economic analysis for continued undergraduate studies at a higher level, or graduate studies in environmental economics.

Language of Instruction: English   

Recommended US semester credits: 3  

EC270 Public Finance

This course provides a broad, up-to-date introduction to the economic analysis of public policy issues. The focus of the course, which draws on microeconomic theory, is on the development of analytical tools and their application to key policy issues relating to the spending, taxing and financing activities of government. Particular emphasis is given to recent developments in public economics, including findings from current research, in areas such as behavioral public economics, new empirical methods, and policy innovations.

The course aims:

  • To give students an appreciation of the analytical methods in economics for the study of the public sector and the role of the state in principle and in practice.
  • To provide a thorough grounding in the principles underlying the role of the state, the design of social insurance and the welfare state and the design of the tax system.
  • To enable students to understand the practical problems involved in implementing these principles.

The course is divided into three parts:

Part 1. An overview of the role of Government.

Part 2. Examining the issues relating to welfare analysis, social insurance, and pensions.

Part 3. Assessing the tax policy and its impact on individuals and companies, while the final part explores the issues of privatization, outsourcing and the proper scope of government.

Topics covered include:

  • Equity, efficiency and the role of the state
  • Behavioral public economics
  • Market failure and social insurance
  • The pensions “crisis” and savings policy
  • Reforming welfare systems
  • The impact of tax incentives and welfare-to-work schemes on unemployment
  • Tax incentives and investment, including cross-border investment
  • Optimal taxation and tax evasion
  • Globalization and tax policy
  • Climate change policy: taxes versus emissions trading
  • Rethinking the scope of government

Course Outcomes

By the end of the course, students should be able to:

  • Discuss critically key issues in public economics, informed by recent research.
  • Present a coherent argument orally and in writing on topics in public economics.
  • Demonstrate a familiarity with a range of policy issues and relevant analytical and empirical tools.

Language of Instruction: English   

EC320 Applied Econometrics and Big Data

This course will provide a solid grounding in recent developments in applied micro-econometrics, including state-of-the art methods of applied econometric analysis.

The course will combine both analytical and computer-based (data) material to enable students to gain practical experience in analysing a wide variety of econometric problems. It will also discuss how modern data science approaches can be used to answer important economic questions. Students will be reading various applied economic papers which apply the techniques being taught. Applications that will be considered include labour, development, industrial organisation and finance.

The topics include analysis of matching methods, identification of average, local average and marginal treatment effects using instrumental variables, regression discontinuity, randomised control experiments, post-estimation diagnostics, cross section and panel data with static and dynamic models, binary choice models and binary classification methods in machine learning, maximum likelihood estimation, ridge regression, lasso regression, and principal component regression.

Lectures are complemented with computing exercises using real data in R or Stata.

This course is ideal for advanced undergraduate students, graduate students, early-career academic researchers, and researchers in the public, private or non-profit sector.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

FM202 Analysis and Management of Financial Risk

This course helps to develop the relevant knowledge and understanding of risk management practices for students aiming to advance their careers in financial risk management.

The course is roughly divided into four parts:

It starts with an introduction to the classification of risk and the basic principles of diversification and hedging, optimal portfolio choice. This will include an overview of the Capital Asset Pricing Model, which is widely applied for the equilibrium pricing of risks.

Then, the class will discuss the methods to manage market risk for fixed income and equity portfolios. Students will learn about Value at Risk (VaR) and its applications to risk management practices.

Next, students are introduced to the concept of endogenous risks to demonstrate how financial risks originate within the financial system. The course will also highlight behavioral aspects of risk and discuss important limitations of current risk management practices.

Finally, the course turns to credit risk, with a focus on ratings based and structural models. Students also cover credit risk on portfolios and credit derivatives. In the final lecture, students will discuss the recent credit crisis and the ensuing regulatory responses and tie together the various parts of the course.

Topics covered include:

  • Foundations of risk measurement and risk finance theory.
  • Basic risk management instruments: Forwards, futures, swaps, and options.
  • Market risk management: Methods for hedging risk in equity and fixed income portfolios; Delta and Gamma, Duration and Convexity.
  • Value-at-Risk: Definition, implementation, and evaluation of risk forecasts. Alternative risk measures.
  • Credit risk: Merton model, the KMV approach, and ratings based models.
  • Introduction to credit derivatives and mortgage-backed securities.
  • Limitations and failures of risk models.
  • Endogenous risk.
  • Some ideas from behavioral finance: noise trader risk, limits to arbitrage, bubbles.
  • The impact of the credit crisis and its implications for risk management and regulation.

Course Outcomes

The objective of the course is to provide a conceptual framework for thinking about financial risk, covering both theoretical background and practical implementation. In particular, five out of twelve classes will be held in the computer lab in order to demonstrate how the material taught in the course can be used in practice.

Upon completion of the course, students will

  • Have learned the main tools and practices needed to assess and evaluate financial risks.
  • Understand risk management practices in an industry setting.
  • Gain the ability to critically assess risk management reports and research.

Language of Instruction: English   

Recommended US semester credits: 3  

FM225 Fixed Income Securities, Debt Markets, and the Macro Economy

This course helps to develop the relevant knowledge and understanding of fixed income instruments and interest rate models for students aiming for a career in the fixed income field. The course will provide an overview of the major institutions, organizations and investors, and the recent developments in fixed income, covering both theoretical background and practical implementation.

Topics will include:

  • An overview of debt markets with a focus on the US and the UK: players, institutions and various instruments.
  • Organisation and structure of debt markets. Terminology and market conventions. Specific markets: US Treasuries, corporate bonds, agency securities, reports, MBS, etc.
  • Basics of fixed income securities: interest rates and discount factors, the yield curve, coupon and zero coupon bonds.
  • Basics of interest rate risk management: variation in interest rates, duration, convexity, risk measurement, and management. Interest rate risk, liquidity risk, inflation risk, credit risk.
  • Term structure models: binomial trees, risk-neutral pricing, no-arbitrage and pricing of interest rate securities.
  • Monetary policy and the role of the central bank in setting interest rates. Interest rates and inflation. The relationship between interest rates and future economic activity.
  • Fixed-income derivatives: Treasury futures, Eurodollar futures, options, swaps, mortgage-backed securities.
  • Credit derivatives.
  • The 2007-2009 credit crisis.

In this course, students will discuss traditional debt instruments (namely government and corporate bonds) and fixed income derivatives (including mortgage-backed securities), develop the theory for valuing them and study the determinants of risk and return of fixed-income securities. Students will also cover the most important state-of-the-art interest rate models, develop their theoretical underpinnings and provide examples for practical implementation. Students will also discuss the role of fixed-income securities in risk management and introduce the concepts of duration and convexity.

The course will closely look at the interdependencies and the roles of the different players in the debt markets. In particular, students will examine the role of, and the instruments available to the central bank in setting interest rates. The major focus of the course will be on economic intuition and on understanding the products and interrelationships in the fixed income markets. Students will have the opportunity to directly implement the concepts as eight out of twelve classes will be held in the computer lab. Finally, students will relate the course topics to the credit crisis of 2007-2009 and discuss implications for the future of debt markets.

Language of Instruction: English   

Recommended US semester credits: 3  

IR102 Capitalism, Democracy, and Equality: The Political Economy of the Advanced Nations

This course introduces students to the complex and conflictual relationship between democracy and capitalism in the advanced market economies (North America, Europe, Australasia and Japan). The focus of the course is on the different ways in which democratic states have sought to promote economic growth and redistribute resources in favor of different political interests. The course presents some key concepts and theories of comparative political economy and uses them to compare institutions, policies, and outcomes across countries and over time.

The aim is to understand why some advanced countries have grown faster than others, why some are less equal than others, why countries have addressed common international pressures in such different ways, and how they have responded to the current crisis. Key areas of inquiry include the growth of the public sector, the structure of the welfare state, the role of electoral and party politics, the politics of monetary and fiscal policy, the distribution of income and capital, and the consequences of the current crisis.

Language of Instruction: English   

Recommended US semester credits: 3  

IR105 Understanding Foreign Policy: the Diplomacy of War, Profit, and Justice

This course examines the key concepts and schools of thought in the study of foreign policy. Concentrating on the process of decision making, internal and external factors which influence foreign policy and the instruments available to foreign policy decision-makers, the course will provide an understanding of the role and effect that foreign policy has on international politics. Students will learn about the different strategies that great powers and small states employ in achieving their aims; the foreign policy challenges posed by terrorism, rogue and failed states; and the significance of new foreign policy powers like China. The classes will combine a discussion of these theories with their application to selected countries in the North, and South, international organizations and transnational actors.

The principal themes to be addressed by the course are:

  • How do states formulate and implement their foreign policy?
  • Does leadership make a difference in successful foreign policy?
  • Can national foreign policies ever be ethical?
  • What can states and international organizations do to prevent common threats like terrorism, nuclear proliferation, and climate change?
  • Are democracies more likely to pursue aggressive foreign policies than dictatorships?
  • How are the foreign policies of emerging powers reshaping the practices, structure, and institutions of the international system?

Each of the lectures will be followed by a discussion seminar on a topic drawn from the lecture and readings. Active student participation is encouraged.

Language of Instruction: English   

Recommended US semester credits: 3  

LL204 Cyberlaw

This course covers a selection of topics in the field of Information Technology and the Law (or Cyberlaw). It will begin by considering the debate about the nature of the influence of information technology upon the development of new legal doctrine, moving on to consider, through topics such as data protection, computer misuse and computer evidence, copyright and digital rights management, criminal content liability and defamation, both how the law has responded to the challenges of information technologies, and the extent to which legal issues have shaped the development of information society policy.

The focus will be initially on English law, although the global nature of IT law means that there is strong EU, Commonwealth, and US legal influence upon the English system, so comparative aspects will be introduced, and readings will include materials drawn from, amongst others, US law journals.

This course does not require an in-depth understanding of information technology – rather, it is primarily interested in the implications of the use of information technology, and the intended and unintended consequences of regulating that use.

Course outcomes

At the end of the course, students should be able to:

  • Critically evaluate ongoing developments in the law relating to information technologies.
  • Display an understanding of how these developments relate to one another.
  • Examine areas of the doctrinal and political debate surrounding rules and theories.
  • Evaluate those rules and theories in terms of internal coherence and practical outcomes.
  • Draw on the analysis and evaluation contained in primary and secondary sources.

Language of Instruction: English   

Recommended US semester credits: 3  

ME306 Real Analysis

Real analysis is the area of mathematics dealing with real numbers and the analytic properties of real-valued functions and sequences. In this course, we shall develop concepts such as convergence, continuity, completeness, compactness, and convexity in the settings of real numbers, Euclidean spaces, and more general metric spaces.

Real analysis is part of the foundation for further study in mathematics as well as graduate studies in economics. A considerable part of economic theory is difficult to follow without a strong background in real analysis. For example, the concepts of compactness and convexity play an important role in optimization theory and thus in microeconomics.

This course in real analysis is designed to meet the needs of economics students who are planning to study at postgraduate level as well as professionals who need to follow developments in economic analysis and research.

Language of Instruction: English   

Recommended US semester credits: 3  

ME315 - Machine Learning in Practice

Increased adoption of such technology across the world has driven massive growth in the volume of data, requiring businesses to harness the power of machine learning to make decisions, learn about and predict customer behaviour to drive strategic advantage.

Combining the fields of engineering, statistics, mathematics and computing, machine learning is one of the leading data science methodologies revolutionising business. This course will cover a wide range of machine learning methods, both model-based and algorithmic. Presenting the theoretical foundations of these methodologies, you will have an opportunity to apply them using real-world examples and datasets.

Recommended US semester credits: 3  

AC110 Principles of Accounting

Accounting has been defined as ‘the language of business’. A knowledge of the underlying concepts of accounting, in addition to its procedures, is an essential element in the education of future managers and other professionals. Topics covered will include:

  • The uses of accounting information
  • The nature and function of accounting conventions
  • The preparation of the financial statements of business entities
  • The accounting treatment of assets and liabilities
  • Cash flow statements
  • Accounting for groups
  • Financial statement analysis

Language of Instruction: English   

Recommended US semester credits: 3  

MG101 Marketing

Peter Drucker, the father of business consulting once famously remarked, “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation.” In today’s highly competitive business environment these words ring even truer: a well-designed marketing strategy can make all the difference between success and failure in the marketplace.

Marketing, ultimately, is about understanding and shaping behavior. Accordingly, banks and other financial institutions, as well as governmental, medical, and not-for-profit organizations–from those that design and sell financial products, to those that implement public policy (e.g., those dedicated to reducing drunk driving, increasing literacy, and encouraging safe contraception), have all found that a well-thought-out marketing strategy can be a critical arbiter of success even in this “ideas marketplace.”

Topics covered include:

  • Introduction to marketing and marketing frameworks
  • Consumer behavior
  • Marketing research (quantitative and qualitative approaches)
  • Segmentation, targeting & positioning strategies
  • New and existing products
  • Distribution decisions
  • Pricing decisions and strategies
  • Promotion, advertising and communication strategies
  • Business and industrial marketing
  • International marketing

This course will combine LSE’s premier standing in the social sciences with cutting-edge management practices. By using a wide range of quantitative as well as qualitative methods, interactive lectures, videos, hands-on exercises, and case studies, students will develop an understanding of key analytical frameworks and tools that are essential to a good marketing strategy.

Language of Instruction: English   

Recommended US semester credits: 3  

MG106 Strategic Management

This course is an introduction to the field of Strategic Management. It covers the key concepts and theories in the field and how they can be applied to real business situations.

The main objective is to learn how to formulate and implement successful strategies that grant a competitive advantage to a firm, where a strategy is a plan that guides managerial decisions. The theoretical background is founded on the “resource-based view” of the firm and its complementarity to microeconomic theory, game theory, and organizational theory.

Topics covered include:

  • The business model of the firm
  • Industry structure and strategic interactions
  • Value creation and competitive advantage
  • Strategic resources
  • Dynamic capabilities
  • Diversification and synergies

The course is illustrated with thought-provoking case studies about real companies in various industries.

Course outcomes

The objective of the course is to illustrate how strategic management supports companies in achieving competitive advantage. At the end of the course students should be able to:

  • Efficiently structure a competitive situation amidst an excess of data
  • Use analytical reasoning to evaluate competitive scenarios
  • Critically evaluate strategic alternatives for a firm
  • Recognize competitive patterns among firms in the global economy

Language of Instruction: English   

Recommended US semester credits: 3  

MG220 Corporate and Organizational Strategy

This course is an introduction to the strategic management of modern diversified firms. It studies how the firm’s portfolio of products and its internal organization can be designed to maximize corporate performance.

The course addresses the following questions facing modern managers:

  • What products and businesses should the firm focus on?
  • What activities should be subcontracted and which should be carried out inside the firm?
  • How should the firm be organized internally to coordinate and motivate employees, managers, and other stakeholders?
  • What are the consequences of providing workers and managers with performance pay?
  • What is corporate culture, and does a strong culture affect the way that an organization reacts to changes in the environment?
  • What are the decision-making and integration challenges arising in mergers and acquisitions?
  • What makes strategic alliances valuable and stable?

The issues will be approached by integrating conceptual, empirical and case methods. Particular emphasis will be placed on bringing these different perspectives together. The course will only require basic mathematical knowledge but will call for rigorous reasoning. In the classes, students are expected to make presentations and to participate actively in the discussions.

Language of Instruction: English   

Recommended US semester credits: 3  

EC101 Introductory Microeconomics

This course seeks to introduce microeconomic analysis as a way of understanding the world. It exposes students to standard microeconomic theory with a focus on the development of economic intuition, whilst also providing certain economic tools that support this intuition along the way. The microeconomic mind-set helps students thinking about issues that are relevant empirically and for policy.

Topics covered will include:

  • Consumer behavior
  • Theory of the firm
  • Competitive market equilibrium
  • Monopoly
  • Factor markets
  • General equilibrium theory
  • Welfare economics

Course Outcomes

One of the key outcomes of this course will be discovering when abstract models are useful and when they are not. Students will participate in class-based exercises that will enhance their understanding of these models through active engagement, rather than just passive reading or listening.

The course is aimed primarily at those who have not previously studied economics. It provides a foundation for further study in economics but is sufficiently self-contained to provide grounding for those who do not intend to take the subject any further.

Language of Instruction: English   

Recommended US semester credits: 3  

EC104 The Wealth (and Poverty) of Nations: Historical and Economic Divergence across the Globe

This course considers the most important questions in economic history: How have modern societies become so rich? How has humanity shifted from a centuries-long state in which lives were brutish and short, to a situation today where people live significantly longer and are much better off? Yet, still, why are some countries rich and others poor? Why has this been the case in history, and why is it the case today?

Often, answers to these questions begin with the Industrial Revolution, but recent work across the social sciences makes it increasingly clear that the important antecedents are found further in the past. The course takes students from the Neolithic Revolution to the present day. It will focus on the deep roots of divergence, considering economic and social structures before industrialization, exploring arguments about how and why living standards and economic performance have improved markedly, while at the same time, looking at how development has diverged between different societies and across societies at the same point in time. It endeavours not just to describe these processes, but also to suggest and consider explanations for them.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

EC212 Introduction to Econometrics

Everyone agrees that evidence-based policy is likely to be more constructive and effective than that based on dogma or fancy. The problem, for those concerned with social or economic policy, is that we seldom have the luxury of being able to undertake controlled experiments of the type conducted by natural scientists. Instead, we have to draw our inferences from the analysis of non-experimental data, and that is the function of econometrics.

This introductory course is intended to serve two constituencies:

  • Professionals: Each year the course is attended by many professionals who have found that the acquisition of econometric skills would be valuable in their work. Included in this category are Ph.D. students, typically in disciplines other than economics, who are including a serious empirical component in their dissertations.
  • Undergraduate students: Many participants are college students from other universities. Those from the US ought to be able to negotiate credit worth at least one semester since the teaching is at the same standard as that for EC220, the regular-year LSE course taken by economics majors, and the course is distinctly more ambitious in both coverage and depth than the typical one-semester introductory econometrics course in the US.

The course is divided into two parts:

Part 1. The first part of this course introduces the statistical tool known as regression analysis applied to cross-sectional data. It begins with the use and properties of the classical linear regression model and then discusses how various technical problems should be handled. Initially, ordinary least squares are the standard technique, but eventually the focus shifts to instrumental variables estimation.

Part 2. The second part of the course discusses the application of the regression model to time series data.

Topics covered include:

  • Simple Regression Analysis
  • Properties of Regression Coefficients and Hypothesis Testing
  • Multiple Regression Analysis
  • Transformation of Variables
  • Specification of Regression Variables
  • Heteroscedasticity
  • Stochastic Regressors and Measurement Errors
  • Simultaneous Equations Estimation
  • Modelling Dynamic Processes
  • Autocorrelation
  • Logit and Probit (binary choice models)

Analytical depth: The material gives emphasis to the analysis of the finite sample and asymptotic properties of least squares and instrumental variables estimators, and the accompanying implications for statistical inference, under different assumptions concerning the data generation process. The derivation of asymptotic results is coupled with the use of simulation methods to establish finite-sample properties. The course contains many proofs in simple contexts.

Mathematical content: The course uses college algebra supplemented by the differential calculus at a basic undergraduate level when it is appropriate and useful. It does not use matrix algebra.

Hands-on: Examples of simple applications in economics are used throughout. Participants use Stata to fit educational attainment and wage equation models with cross-sectional data and EViews to fit demand functions with time series data. Technical support is provided.

Intuitive understanding: In addition to its technical content, the course emphasizes the development of intuitive understanding. The aim is that participants should at all times understand why the material is useful and necessary.

Course Outcomes

The objective of this course is to provide the basic knowledge of econometrics that is essential equipment for any serious economist or social scientist, to a level where the participant would be competent to continue with the study of the subject in a graduate programme.

While the course is ambitious in terms of its coverage of technical topics, equal importance is attached to the development of an intuitive understanding of the material that will allow these skills to be utilized effectively and creatively, and to give participants the foundation for understanding specialized applications through self-study with confidence when needed.

Language of Instruction: English   

Recommended US semester credits: 3  

EC235 Economics of European Integration

This course introduces the main economic aspects of the current development of the European Union (EU) and its policies. The course covers the process of European Integration and its economic impacts on individuals, firms, and regions. Special attention will be devoted to the analysis of the economic opportunities and challenges generated by economic integration, and to the assessment of the policies designed to support this process and mitigate its potential side-effects.

The topics covered will include:

  • The early phase of the EU: trade integration
  • The Single European Act (SEA) and the effects of free movement of persons, capital, goods, and services within the EU
  • Innovation and technological development in the EU
  • The geography of EU income and unemployment disparities: comparing the EU with the US, China, and India
  • How the EU promotes growth and employment: Europe 2020 and Smart Growth Agenda
  • Opportunities and challenges for Multinational Firms in the EU market
  • The Common Agricultural Policy (CAP) and its evolution
  • The EU Regional Policy and its future for the 2014/2020 period
  • EU enlargement, EU Neighbouring Countries, and migration
  • The theory of Optimal Currency Areas (OCA): is the EU an OCA?
  • The European Monetary Union (EMU)
  • Monetary policy in the EU and the Euro
  • European social policy and labor markets
  • Facts and ideas about the ongoing economic crisis

The course will touch on the institutional, political and historical background of European integration, though its main focus is on the economic analysis of the policies and prospects for the European Union. Some recent hot topics in the international policy agenda like rising public debt and the euro crisis will also be covered.

Course outcomes

This course is highly relevant to students and scholars interested in expanding their knowledge of the EU and its economics, but also to policymakers and executives wanting to know more about the opportunities offered by the EU, its markets, and institutions.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

EC312 Advanced Econometrics

This course will present an advanced treatment of econometric principles for cross-sectional, panel and time-series data sets. While concentrating on linear models, some non-linear cases will also be discussed, notably limited dependent variable models and generalized methods of moments.

The course focuses on modern econometric techniques, addressing both technical derivations and practical applications. Applications in the areas of microeconomics, macroeconomics, and finance will be considered.

The topics covered will include.

Main Regression

  • Principles of Estimation (Ordinary Least Squares, Generalized Least Squares and Maximum Likelihood Estimation with Micro-Econometric applications)
  • Principles of Testing (t- and F-test; Wald, Likelihood Ratio, Lagrange Multiplier Testing Principles).
  • Time Series: Basic Time Series Processes; Stationarity and Nonstationarity – Unit roots and Cointegration.

Estimation Methodology

  • Endogeneity in linear regression models; Instruments; 2SLS estimator and Generalized IV estimator; Simultaneous equations.
  • Motivation, definition and asymptotic properties of GMM estimator; Efficient GMM estimation; Over-identifying restrictions.
  • Introduction to Panel Data Models: Fixed effect and random effect models.
  • Arellano-Bond estimator in dynamic panel data models.
  • Introduction to Quantile estimation.

Language of Instruction: English   

Recommended US semester credits: 3  

FM230 Alternative Investments

In the era of significant market turmoil institutional, as well as individual, investors look beyond traditional investment vehicles such as bonds and shares. For example, the price of gold substantially increased in 2009. The purpose of this course is to explore the world of alternative investments such as investments in hedge funds, private equity/venture capital funds, real estate, and commodities, either directly or through funds of funds. This course will combine theory with empirical exercises, allowing students to get a “hands-on” experience. Students will want to see what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

Topics will include:

  • Overview of Alternative Assets
  • Hedge Funds
    • A Hedge Fund Investment Program
    • Due Diligence
    • Risk Management
    • Regulation
    • Funds of Funds
  • Commodities and Managed Futures
    • Investing in Commodity Futures
    • Managed Futures
  • Venture Capital (VC)
    • Raising Funds
    • Valuation of Investments
    • Initial Public Offerings (IPOs)
  • Leveraged Buyouts (LBOs)
    • Financing and Leverage
    • LBO valuation
    • Value Added
    • Exit Strategies
  • Real Estate
    • Real Estate and an Investment Asset
    • Valuation
    • Securitization and Mortgage Backed Securities (MBSs)’
    • Real Estate Investment Trusts (REITs)
    • Demographics

There will also be guest lectures by practitioners from the hedge fund and private equity industries.

The course will combine theory with empirical exercises, allowing students to get a hands-on experience. The course want to identify what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.

As part of class work, students will be encouraged to work with data (in Excel). Particular data work will include measuring the risks of investment portfolios, calculating the alphas of hedge fund strategies, evaluating an LBO deal, evaluating a VC deal and pricing an MBS.

Language of Instruction: English   

Recommended US semester credits: 3  

FM250 Finance

This intensive course is designed to deliver a greater understanding of asset markets and corporate finance.

Part 1: Asset-markets

This section offers a unified perspective of modern valuation methods in the context of three important asset classes – fixed income, stocks, and derivatives. The course will then proceed to fixed-income securities, before moving onto stocks, starting with basic notions of risk, return, diversification, and portfolio theory. Capital asset pricing model (CAPM) will be discussed, before examining whether the market values stocks efficiently, or whether there are “abnormal” returns leading to large profits.

Part 2: Corporate Finance

These questions addressed in this part of the course can be divided into two broad sets.

Decisions regarding how to spend funds on alternative investment projects (also known as capital budgeting). Here the course will describe the alternative techniques commonly employed to assess investment opportunities.

How to raise the funds necessary to finance those investments. Firms’ decisions over debt/equity ratios will be analyzed here. This analysis will then be broadened to allow for the possibility that debt/equity choices may affect how firms are run. Incentives to adopt riskier strategies as a function of overall leverage will be considered, as will the debt overhang problem.

In general, the topics covered will include:

  • Net Present Value technique
  • Introduction to portfolio theory
  • The Capital Asset Pricing Model (CAPM)
  • Stock market efficiency
  • Forward and futures contracts, option pricing
  • Investment decisions and the significance of real options
  • Capital structure and dividend decisions
  • Capital restructuring: Initial Public Offerings

Course Outcomes

Students will learn about the theory and application of Financial Securities and Corporate Finance. The course broadly covers financial instruments, such as equity and fixed income and derivative securities, as well as key concepts in Corporate Finance. It will also enhance a student’s understanding of how firms choose their capital structure, conflicts between shareholders and debt holders, payout policy, and initial public offerings.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

FM255 Financial Markets and Portfolio Management

This course is about the characteristics of financial markets and optimal investment strategies. Its aim is to provide a thorough understanding of both the mechanics and the operations of financial markets, whilst paying particular attention to the trading and evaluation of securities in equity and bond markets.

During this intensive course, students will focus on asset pricing, active portfolio management and risk immunization, portfolio performance evaluation, the predictability of returns, dynamic trading strategies, and behavioral finance. Consideration will also be given to recent developments in both the theory and practice of cross-sectional asset pricing and the evaluation of risky securities.

Topics covered include:

  • Time-Varying Expected Returns and Market Efficiency;
  • Optimal portfolio selection (asset allocation and security selection);
  • Risk and return in Equilibrium: The CAPM;
  • Empirical evidence on the capital asset pricing model;
  • Performance of the C-CAPM, the equity premium, and risk-free rate puzzles;
  • Anomalies and trading strategies (size effect, value premium, momentum, reversal, Betting-Against-Beta);
  • Multi-factor models: APT and I-CAPM;
  • Optimal investment strategy when privately informed;
  • Active portfolio management, insurance, and immunization;
  • Organization of financial markets and exchanges;
  • Determinants of bid-ask spreads;
  • Behavioral finance;
  • Bond portfolio management and immunization.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

FM350 Advanced Corporate Finance

This course focuses on theoretical issues which arise in modern corporate finance, and its major theme will be the firm’s capital structure and pay-out decision.

The coruse will see that under certain assumptions, this decision is irrelevant; this is the Modigliani and Miller Theorem. These assumptions will then be loosened to see when it may be better for firms to issue debt versus equity, or to repurchase shares rather than pay out dividends.

In the final part of the course, students will learn about real options and apply this to study the optimal policy of a firm raising capital to finance risky investment.

Topics covered will include:

  • A review of valuations
  • Modigliani and Miller
  • Taxes
  • Recapitalisation
  • Bankruptcy and distress
  • Private Information
  • Dividend policy
  • Optimal capital structure
  • Investment under constraints
  • Real options

Course Outcomes

This course is a broad overview of major topics in Corporate Finance. Students are assumed to have seen many of the topics in earlier courses; however, this course provides more in-depth coverage. The topic of capital structure is covered in FM250 Finance. However, FM250 provides only a brief overview. Advanced Corporate Finance will build on that by taking the decisions of the firm as the main topic. Students will spend significant amounts of time on topics beyond the scope of FM250, such as taxes, bankruptcy, private information, signaling, and real options.

Language of Instruction: English   

Recommended US semester credits: 3  

IR100 Great Thinkers and Pivotal Leaders: Shaping the Global Order

This intensive course takes a historical approach to examining a series of pivotal transitions in the shaping of the global order across the last several centuries. Focusing on some of the world’s most influential thinkers and leaders; from Smith to Keynes; from Napoleon to Churchill and beyond; the course explores the new ideas that ascended, the leaders that defined these orders, and the interaction between the two.

A number of important questions will be examined and addressed, including;

  • What role do ideas play in international relations?
  • To what extent can individual leaders shape the global order?
  • Do circumstances determine which ideas and which leaders come to the fore? Or do individuals make their own history?
  • What does this history reveal that might help us to shape international politics today and in the future?

This course considers an international order from the standpoint of both international security and international political economy. It presumes no experience in either field or the social sciences more generally. As such, it is ideal for students who want a rigorous introduction to international politics. It will also appeal to students who want to delve deeper into the history and evolution of the international system.

The course is divided into six modules:

1. War Economies

  • John Locke and the birth of the Fiscal-Military State
  • Adam Smith’s influence on the American Revolutionary War

2. Revolutionaries

  • Napoleon’s ‘Armed Doctrine’
  • The Economist and the Apogee of Free Trade
  • Marx in the Russian Revolution

3. The World at War: Reordering International Politics

  • The Interwar Collapse and the Rise of John Maynard Keynes
  • Decolonization: Gandhi versus Churchill

4. Cold Warriors

  • The Anglo-American Postwar System: Keynes versus White
  • George Kennan’s Cold War

5. Competing Development Models

  • Raúl Prebisch and Import Substitution Industrialisation
  • Milton Friedman, ‘The Chicago Boys’, and Export Oriented Industrialization

6. Neoconservatives and the War on Terror

  • Condoleezza Rice’s National Security Strategy

While some familiarity with these figures and topics is valuable, the course assumes no prior expertise or training. Students, however, should appreciate that the course will challenge them to engage a variety of materials across a range of substantive issue areas–all of which is rich but much of which is challenging.

Course Outcomes

By the end of this course, students should have:

  • An understanding of several of the most significant shifts in international relations across the last several centuries
  • Familiarity with those intellectuals and political figures who are reputed to have shaped these shifts
  • Their own well-articulated and defensible view about the relationship between ideas and policy in international relations

Language of Instruction: English   

Recommended US semester credits: 3  

IR207 Development in the International Political Economy

This course is an introduction to International Development. It examines the politics and the institutional framework for social and economic development. For developing countries, the national and international contexts interact to set constraints on development and determine possible avenues of growth. Specific issues like economic growth, international debt, aid, poverty, and environment are increasingly a matter of negotiation amongst domestic interest groups and interaction between government and international institutions.

The course will also look at the impact of economic globalization, international trade, and the emerging role of civil society and international investment in development. The inter-connection between economic development and social and political issues like democratization, governance, poverty, human rights, gender, famine, environmental issues, climate change and armed conflict is examined, as well as the role of international organizations such as the World Bank, the United Nations, and the World Trade Organization.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

IR214 Public Policy Analysis

How do politics and institutions shape public policy? How and why does policy change? How does bureaucracy work (or not), and how might it be reformed? This course addresses these questions using theories and methods of public policy analysis, with a global scope.

This course is an introduction to theories, approaches, and methods for public policy analysis. These include how politics and institutions shape public policy, the processes of public policy change, and the challenges of public sector management. The scope of the course is global, with applications and examples from countries around the world.

The course will introduce students to fundamental social-scientific concepts like power, collective action, institutions, and accountability, as well as tools useful for evaluating policy impact and effectiveness. The course will enable students to understand the tradeoffs involved in the design of policies and institutions; the influence of factors like partisanship, policy ideas, information technology, and globalization; as well as reforms that attempt to improve government efficiency, representation, and transparency. The course will also give students the conceptual tools to be able to analyze specific policy issue areas of their interest, and understand the complex forces that shape policy change.

Language of Instruction: English   

Recommended US semester credits: 3-4   Contact Hours: 7.5

LL200 Competition Law and Policy: Controlling Private Power

Competition law involves, essentially, the use of legal tools to control the exercise of market power by economic actors, in order to protect the competitive forces within the market. The competition rules present a powerful set of tools for public enforcement agencies—and, indeed, private litigants—to prevent and sanction harmful instances of private power.

This course provides a comprehensive overview of the structure and substance of the EU competition rules, examining both the current legal framework and the underlying competition policy considerations which have informed its application and development.

At its core, the EU competition framework incorporates three key provisions:

  • Article 101 TFEU, which prohibits anti-competitive agreements and other forms of coordination between economic actors;
  • Article 102 TFEU, which prohibits the abuse of market power held by an economic entity which holds a dominant position in the market; and
  • EU Merger Regulation (EUMR), which prohibits mergers and other concentrations which would significantly impede effective competition in the internal market.

EU competition law is, moreover, enforced under a distinctive and multi-faceted system which involves centralized enforcement by the European Commission, decentralized enforcement by the national competition authorities of the Member States, and a growing emphasis on private enforcement via antitrust damages actions brought by ‘private attorneys general’.

This course aims to provide participants with a comprehensive understanding of the core rules and principles that underpin the EU competition system, alongside broader competition policy considerations. It does so through a systematic examination and assessment of each of these three areas of substantive competition law, as well as an exploration of the enforcement context plus the wider policy landscape. Although the course focuses primarily on the competition rules of the EU, comparative analysis to other jurisdictions—particularly the US—will be made where appropriate.

Throughout the course, an emphasis is placed upon the crucial, and often controversial, the question as to whether and when competition law should be deployed to control private power within the market and society more generally. The course thus aims to equip participants with both a strong technical knowledge of EU competition law and the ability to engage with and critique issues of competition policy.

Language of Instruction: English    Language Level Required: Intermediate  

Recommended US semester credits: 3  

LL206 International Financial Law

This course offers a cross-sectoral analysis covering financial market transactions in commercial banking, insurance, derivatives, capital markets and asset management. It allows participants to grasp the big picture of the legal underpinnings of financial transactions and to understand how risk in the financial market is entered, managed, dispersed and shifted. The course analyses and compares the legal basis of financial transactions in both Common law and Civil law jurisdictions. The focus is mainly on broad principles and policy issues rather than a detailed examination of the statute, case law and drafting in order to allow students from all jurisdictions to take home valuable knowledge directly applicable to their respective jurisdictions.

Course structure

– Introduction

  • Logic and players of the financial market
  • Overview of types of financial transactions
  • Reasoning and sources of financial law
  • The types of risk and the role of financial law
  • European and global legal and regulatory architecture

– Raising capital: taking risk

  • The nature of banks, deposit-taking, loans, syndicated loans
  • Issuance of debt securities, Eurobonds, and equity
  • Investment funds
  • Transfer by assignment and novation

– Mitigating risk (I): personal surety and derivatives

  • Guarantee and insurance
  • Derivatives and credit default swaps
  • Cross-comparison and the risk of re-characterization

– Mitigating risk (II): asset-backing

  • Security interests
  • Financial Collateral
  • Repurchase agreements and securities lending

– Mitigating risk (III): risk reduction

  • Set off
  • Close-out netting
  • Multilateral clearing

– Cross-jurisdictional analysis

  • Private international law analysis in financial law
  • Cross-border collateral
  • Cross-jurisdictional netting
  • Common patterns and difficulties

Who should sign up for this course?

This course is designed to be of both high academic and direct practical value. It appeals to students preparing for a career in financial markets as well as to practitioners wishing to broaden their horizon. It will be of particular interest for the

  • Private financial sector (management, compliance, legal, governmental and international affairs, etc)
  • Legal practice specializing in the above-mentioned activities
  • Government and governmental agencies (policymakers from treasuries, ministries of economy/finance/justice, foreign office, etc.)
  • Central banks (management, legal, regulation and oversight, international affairs, etc.)
  • International organization and EU organs and agencies (policymakers, strategy, legal, international affairs, etc.)
  • Non-governmental organizations and advocacy groups active in the field of international financial marketsStudents interested in any of the above, or pursuing a masters programme related to financial markets

Learning outcome

  • Understand how risk is created and managed by using different types of legal arrangements.
  • Get to know the difficulties in making these arrangements insolvency proof and robust in times of financial crisis.
  • Understand the legal difficulties that flow from the international character of the financial market.

This course is a good match with LL207 International Financial Regulation, which concerns the public law side of financial markets. In combination, these courses provide the full picture of financial markets law and regulation. However, both courses are self-contained.

Language of Instruction: English   

Recommended US semester credits: 3  

LL301 Corporate Finance Law

This course examines the legal aspects of corporate finance.

In this module we will analyse the legal aspects of corporate finance. There are three primary components of this module. The first component is an introduction to corporate finance theory, which covers the nature of equity and debt as well as an introduction to theories of capital structure and valuation. The second part of the module covers the nature and regulation of legal capital, including minimum capital and the regulation of dividends and share buy-backs. The third part of the module addresses the issuance of debt and equity, related aspects of securities regulation, such as insider trading and disclosure regulation, as well as mergers & acquisitions.

The module’s primary focus is on UK and EU law and regulation. However, the module will also draw on the approaches to regulation in other jurisdictions, such as the United States and Germany.

Language of Instruction: English   

Recommended US semester credits: 3  

ME201 Optimization with Applications in Portfolio Choice

The aim of this course is to impart knowledge and develop an understanding of optimization theory. Although the emphasis is placed on problems of optimal investment and consumption, the techniques developed are applicable to problems arising in economics and several other areas.

What is the best composition of assets in a portfolio? What is the minimal amount of fuel needed to launch a spacecraft to orbit? How much daily exercise is optimal? These seemingly unrelated questions have one thing in common: to answer them one has to optimize. Optimization permeates our daily life, and the ability to act optimally distinguishes success from failure. This is especially true in the world of finance, where bankruptcy may be the result of wrong investment decisions.

The course explores theoretical and numerical approaches to solving static constrained and unconstrained as well as dynamic optimization problems. The theory covered is exemplified by applications such as the Markowitz portfolio selection problem and the Merton optimal investment problem. To introduce the optimal investment problem, the multi-period binomial tree model for a financial market is introduced and the concepts of arbitrage and self-financing portfolios are discussed.

The course is relevant to students pursuing a degree in a quantitative subject who are interested in finance, as well as to students majoring in finance or economics who want to hone their quantitative skills. The course is largely self-contained and the relevant mathematical background, such as elementary probability theory and property of functions will be thoroughly reviewed.

Language of Instruction: English   

Recommended US semester credits: 3  

ME117 Further Statistics for Economics and Econometrics

This course provides a precise and accurate treatment of probability, distribution theory and statistical inference.

As such there will be a strong emphasis on mathematical statistics as important discrete and continuous probability distributions are covered (such as the Binomial, Poisson, Uniform, Exponential and Normal distributions). Properties of these distributions will be investigated including the use of the moment generating function.

Point estimation techniques are discussed including the method of moments, maximum likelihood, and least squares estimation. Statistical hypothesis testing and confidence interval construction follow, along with non-parametric and goodness-of-fit tests and contingency tables. A treatment of linear regression models, featuring the interpretation of computer-generated regression output and implications for prediction, rounds off the course.

Collectively, these topics provide a solid training in statistical analysis. As such, this course would be of value to those intending to pursue further study in statistics, econometrics and/or empirical economics. Indeed, the quantitative skills developed by the course are readily applicable to all fields involving real data analysis.

Language of Instruction: English   

Recommended US semester credits: 3  

Highlights
  • Same courses and professors as during the academic year
  • Selective admission
  • Ranked #5 in U.K. (#25 in the world) - Times Higher Education Rankings 2018
  • Founding member of elite Russel Group of universities

*API is offering a 25% discount on the housing fees for summer 2021 LSE programs. Contact the API office for details!

London is a large city, so all students can expect to use public transportation (i.e. tube or bus) to move around the city on a daily basis, both getting to school and for social/cultural activities. It is a part of life in London. Generally, it will take students 20-45 minutes to get to school from their housing via public transportation or walking. All housing will be located in Zones 1 and 2 on the tube map.

Students will be housed in student apartments. Most apartments have several single rooms with a shared living room and kitchen. Some have en suite bathrooms in each bedroom while others have shared bathrooms. The kitchens are equipped with ovens, stoves, microwaves, and refrigerators. Wireless Internet is provided in all flats. A weekly cleaning service is provided to the communal kitchen/living areas in all API London accommodations.

We may place students in a few different student apartment buildings depending on where they are taking classes. We will prioritize having students share an apartment with other API students, but it is possible that API students would share an apartment with non-API students.

Acorn Housing 36609042992 O
Acorn Housing 36639891511 O
Acorn Housing 36639893941 O
Api London Housing 7773304354 O
Api London Housing Examples 8538549425 O
Lady Margaret Kentish Town 36640097931 O
Lady Margaret Kentish Town 36640100611 O