Double degree BSc² Econometrics and Economics

# Study programme

The double degree programme enables you to complete two entire three-year bachelor programmes in four years. By taking extra lectures and exams you earn two BSc degrees in two thirds of the original time. You will acquire an average of 66 credits each year instead of the standard 60 credits. The BSc² Econometrics/ Economics is a small scale programme that facilitates personal attention and intensive guidance.

## Year one: focus on econometrics

The Double Degree BSc² Econometrics/Economics programme covers both  theoretical issues related to economics and business, and the application of mathematical and statistical techniques to help answer economic questions. This is unique. You benefit both from the excellent perspective that this gives you, compressing the timeline by building knowledge in both subjects.

In your first year, you will focus primarily on Econometrics and Operations Research with various basic courses in mathematics and statistics. This introduction also includes computer programming, implementing mathematical models and solving optimisation problems. The courses Microeconomics and Macroeconomics complete the year.

## Years two, three and four: from a solid foundation to a double degree

The following three years all consist of both economic and econometric subjects. In the second year of the double bachelor programme, you will lay the groundwork with mainly basic subjects. Years three and four are about deepening your knowledge and further developing your skills. You will take on your economic major in year three and your econometric major in year four.

In the final year, you have the opportunity to choose a minor (a combination of electives) at or outside Erasmus School of Economics. You can also opt to study abroad, or take an internship. With the completion of a thesis you conclude the double degree programme.

## In class

A wine merchant wants to know how his sales would be affected if he applied discounts of 10% or 25%. One bottle of wine gives you six glasses and in a small experiment the sales are observed given the price of one glass of wine. How would you advise the wine merchant? Here are the data of the experiment:

Price

Sales

1

17956

1

16641

1

12321

1

14161

0.90

10404

0.90

15876

0.90

43681

0.75

33489

0.75

23409

0.75

77841

The model is linear, and of the form: ln Sales = a+b * ln Price

Construct the model and determine the values a and b, and interpret b. What economic variable is b?

## International character

The BSc² programme is offered in English and we aim for a solid mix of Dutch and international students. Currently, approximately 30 % of students are from outside the Netherlands. This provides an interesting combination of backgrounds in the classroom . In general, students at Erasmus School of Economics come from all over the globe and the BSc² programme offers you plenty of opportunity to work in cross-cultural study groups. You will follow some of your courses together with students from the Econometrics and Operations Research programme (Econometrics), and from the Economics and Business Economics programme.

Disclaimer: The overview below shows the programme curriculum for the academic year 2019/2020.

• ### Block 1

• The Take-Off is the introduction event for all new students of Erasmus School of Economics. During this interesting introduction event, you will be provided with useful practical information and receive an introduction to your studies, meet your fellow students and our School.

• The aim of this course is a.o.

• To become familiar with the Lagrange multiplier method.
• To master part of the techniques of integration.
• To learn mathematical proving techniques, such as set proofs, mathematical and complete induction.
• Following a brief introduction to the different phases of scientific research, the main focus of this introductory course is on developing the mathematical basis (probability calculus, probability distributions, introduction to statistical testing) and with applications in solving practical questions.

• Guidance (econometrics) consists of two modules:

• Module A: Academic Study Skills in block 1, 2 and 3.
• Module B: Academic Presentation Skills. This module takes place in block 2.
• ### Block 2

• The aim of this course is to acquire insight into the abstract underlying structure of matrix algebra.

• The first part of the course deals with the theory of the consumer;
• The second part focuses on the theory of the firm, and includes the topics of firm production and firm cost;
• The last part of the course turns to market structures (monopoly, imperfect competition and perfect competition), to the joint analysis of firm and consumer behavior within a market (general equilibrium theory) and to factor markets (labor and capital).
• Guidance (econometrics) consists of two modules:

• Module A: Academic Study Skills in block 1, 2 and 3.
• Module B: Academic Presentation Skills. This module takes place in block 2.
• ### Block 3

• The aim of this course is getting  sufficiently familiar with those concepts and methods of differential and integral calculus that an econometrist should know, by means of a leading international textbook.

• Guidance (econometrics) consists of two modules:

• Module A: Academic Study Skills in block 1, 2 and 3.
• Module B: Academic Presentation Skills. This module takes place in block 2.
• ### Block 4

• The aim of this course is to understand the basics of probability theory, including central concepts and proofs of central results.

• The course starts by introducing the fundamental data types and operations. After that, control statements, i.e., decision and repetition, are presented. Then, methods, as computations consisting of multiple steps, are given. Arrays, representing a data structure storing multiple values, are depicted next. Last, the main concepts of object-oriented programming paradigm, i.e., class and instance, are described.

• The aim of this course is to acquire basic knowledge of eigenvalues, eigenvectors, orthogonality, projections, diagonalization, quadratic forms, vector spaces, inner products, norms, distances and vector differentiation.

• ### Block 5

• The course Statistics aims to facilitate the construction of statistical statements about the population on the basis of a random sample.

• This course is an introduction in the theory and methods to solve linear programming problems.

• The topics that are discussed focus on:

• Developing mathematical methods and skills
• Thinking algorithmically
• Acquiring mathematical intuition
• ### Block 1

• The aim of this course is to develop a basic understanding of the theory and practice of Busniess Accounting/Bookkeeping as well as Management Accounting and Financial Accounting.

• In this course, students continue studying and applying statistical tools.

• Learning objectives:

• Be able to program econometrical model estimation and result visualization in Matlab
• Understand the main differences between procedural and object oriented programming paradigms
• Understand the basic concepts of object oriented programming (data hiding, interfaces, inheritance, exceptions) and be able to program with these efficiently in Java
• Understand the programming by contract approach, and be able to use its core concepts (pre-and post-conditions) to program medium-size error free programs
• ### Block 2

• The goal of this course is to provide an understanding of the fundamentals in corporate finance and investments.

• The aim of this course is to know the main methods for nonlinear optimisation.

• ### Block 3

• The course consists of two parts: personnel economics and public economics.

• Econometrics is characterized by the combination of economic research questions, use of empirical data, application of statistical and mathematical methods, and the use of software to estimate and evaluate models. All these topics are extensively discussed in the lectures and practised in the tutorials.

• ### Block 4

• This course will give an overview of the limitations of traditional economic and financial models and how they can be improved upon by using psychological insights.

• In this course, students will work as teams to develop a marketing plan for a new product/service. They will receive instructions regarding each component of the marketing plan through lectures and a customised digital book.

• The lectures are a follow-up on the lectures in Econometrics 1. The following topics will be discussed:

• Models with heteroskedasticity and/or serial correlation
• Models with endogenous regressors and models for limited dependent variables (eg. logit, probit)
• Models for censored or truncated variables.
• Block 4: Academic Research Skills

• ### Block 5

• The contents of the course organisation and strategy cover three blocks: the firm, the market, and the [macro-]environment.

• The aim of this course is to develop understanding of the theory and practice of providing internal information (Management Accounting) and external information (Financial Accounting), necessary for decision making purposes by stakeholders of an organization. This course builds on the Bachelor I introduction.

• Block 5: Academic Skills Research Project

• ### Block 1

• The course international economics focuses primarily on the world economy as such and the relationships between countries and trading blocks regarding international trade, capital flows, economic growth, exchange rates and financial crises.

• After this course you will be:
i) more critical of debates about welfare policies in Europe;
ii) able to distinguish equity from efficiency motivations for social policies;
iii) able analyse the design of welfare policies;
iv) able to assess the validity of empirical analyses of welfare issues;
v) practised in developing a logical, coherent argument.

• Combinatorial optimisation deals with finding an optimal solution from a finite set of feasible solutions.

• ### Block 2+3+4

• An IBEB Major consists of one seminar and three courses.

• ### Block 2

• The course begins with basic concepts and definitions such as rationality, preferences, choice, uncertainty, discounting, and backward induction. Game theory is presented as a natural generalization of individual choice theory. Main game theoretic concepts, such as strategy, equilibrium, outcome, pay-off, are introduced for games in normal forms.

• ### Block 3

• The aim of this course is to understand elementary stochastic processes ( Markov chains, Markov processes).

• ### Block 4

• This class builds forth on the Matlab experience obtained in the course Programming.

• ### Block 5

• By means of practical case studies, attention will be given to the four different major tracks within the bachelor econometrics programme.

• Learn the basics of time series analysis.

*Senior students who have completed Time Series Analysis previously in year 2 of the programme, should follow FEB12007X - Intermediate Accounting (IBEB) in year 3 of the programme.

• ### Block 1

• A minor is a coherent combination of courses of 12 or 15 credits in total. A minor is meant to be a valuable addition to your regular study curriculum and can be either broadening or deepening.

Students are allowed to replace the Minor with studying abroad, or with an internship.

• ### Block 2(+3)

• The electives represent a choice of supplementary but fascinating academic views from the specialisation that you have chosen.

The elective space is 12 cr when the Minor is rounded off at 12 cr, and 9 cr when the Minor is rounded off at 15 cr.

• ### Block 3

• The history of economic thought helps us to understand why economists think they way they do today. It describes how theoretical frameworks have changed over time.

• ### Block 5

• The thesis is the crown on your Bachelor’s degree programme.