Durham University
Programme and Module Handbook

Postgraduate Programme and Module Handbook 2018-2019 (archived)

Module ECON43815: Growth and Finance

Department: Business School (Economics and Finance)

ECON43815: Growth and Finance

Type Tied Level 4 Credits 15 Availability Available in 2018/19 Module Cap
Tied to N3K709


  • Knowledge of basic calculus and statistics


  • EITHER Advanced Financial Theory (ECON41215) OR Advanced Macroeconomics (ECON44815 or ECON41715)

Excluded Combination of Modules

  • None


  • To develop advanced understanding of the relationship between the financial sector and the macroeconomy. Students will learn how the economic growth of a nation is connected to the financial market prices such as stock prices, interest rates and exchange rates.


  • The module will develop production based asset pricing models and show how the production and investment technology determine asset market behaviour and growth. The missing link between growth and finance is the technology which will be clearly demonstrated in the module.
  • The following list of topics is indicative:
  • Dynamic optimization techniques;
  • Endogenous Growth Theory;
  • Introduction to general equilibrium models asset pricing;
  • Linking market price of capital to growth;
  • Human capital, growth and asset pricing.

Learning Outcomes

Subject-specific Knowledge:
  • Have an advanced understanding of how the economic fundamentals of a nation determines growth and asset pricing behaviour.
  • Be familiar with, and have a critical appreciation of, the frontline scholarly literature on growth and asset pricing.
Subject-specific Skills:
  • Have developed advanced problem solving skills in relation to growth and asset pricing.
  • Be able to analyze and understand financial market puzzles as well as growth puzzles, and how they are connected.
  • Be able to read and comprehend a fast-growing literature on macro finance.
Key Skills:
  • Written communication: tested in the examination, which includes essay-type questions;
  • Problem Solving: tested in the examination and supported through seminar work and the formative assignment;
  • Numeracy: tested in the examination and supported through seminar work and the formative assignment;
  • Mathematical and Statistical Skills: the module includes the use of optimization techniques which require these skills – tested in the examination and supported through seminar work and the formative assignment.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

  • Lectures will cover advanced topics in detail, including relevant academic articles, and provide guidance for problem solving.
  • In the seminars students will be encouraged to actively participate and solve problems.
  • A summative written examination will test students’ understanding of the material covered and their problem solving skills.

Teaching Methods and Learning Hours

Activity Number Frequency Duration Total/Hours
Lectures 9 Weekly 2 hours 18
Seminars 4 Fortnightly 1 hour 4
Preparation and Reading 128
Total 150

Summative Assessment

Component: Written examination Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
Written examination 2 hours 100% Same

Formative Assessment:

A problem set will be given as formative assignment and students will receive written feedback.

Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University