Behavioural Economics

One of three specialist Masters in Economics programmes available at Durham, the MSc in Behavioural Economics examines how elements of behavioural psychology can be applied to understand how people make economic decisions and how these decisions may differ from those made from rational choices. As one of the fastest growing areas in economics, behavioural economics provides insight to inform business and public policy alike. You will also gain an understanding of experimental methods in economics through classroom experiments.

The programme consists of a set of core and optional modules, culminating in a research-based dissertation. Core learning covers key models of advanced macroeconomics and microeconomics and tools of econometric analysis, alongside behavioural and experimental economics. Offering the flexibility to tailor your programme, you will then be able to choose from a selection of optional modules. The dissertation then enables you to develop your research skills, through an in-depth investigation at an advanced level of a topic relevant to your degree.

The programme is delivered by the Department of Economics, renowned internationally for its research and teaching excellence and is one of four departments at Durham University Business School. The Business School is one of the an elite group of institutions accredited by all three major business education accrediting bodies: the Association to Advance Collegiate Schools of Business (AACSB), the Association of MBAs (AMBA), and the European Quality Improvement System (EQUIS).

Course structure

Listed below are the core and optional modules for the MSc Behavioural Economics programme. For detailed information on each module visit the Module Handbook.

Core modules

You will study the following core modules:

Advanced Macroeconomics features selected topics from contemporary business cycle theory, models of long-run economic growth, and macroeconomic policy analysis.

Advanced Microeconomics enhances your knowledge and analytical skills in areas such as consumer theory, producer theory, decision-making under risk and uncertainty, incentives and strategic behaviour, general equilibrium and information economics.

Econometric Analysis provides the econometrics skills necessary to pursue empirical research in economics and/or finance and provides a grounding for understanding the more advanced econometric techniques to be taught in the second term of the course.

Behavioural Economics builds the necessary knowledge and skills to critically review a wide range of behavioural patterns that influence economic decisions, and the consequences of those behaviours for business and policymaking.

Experimental Economics enables you to test behavioural theories using methods from experimental economics. This module is designed to combine the behavioural approach in economics with active classroom experiments. These experiments illustrate simple economic situations, such as markets or auctions, and are used to highlight several economic ideas. You will critically review studies of economic behaviour in markets, bargaining, auctions, game theory, and public choice and discuss key aspects of individual behaviour in isolation, in particular choice under uncertainty and choice over time.

You will then choose one of the two modules below:

Microeconometrics provides the tools required to conduct policy evaluation using microeconomic cross section and panel datasets.

OR

Times-Series Analysis provides the tools required to model stationary and non-stationary time series data and obtain forecasts from econometric models.

In recent years optional modules have included:

You will choose one optional module from:

• Time-Series Analysis
• Microeconometrics

You will then choose a further two optional modules, up to the the value of 30 credits, from a list that has typically included:

• Time-Series Analysis*
• Microeconometrics*
• Development Economics
• Environmental and Climate Economics
• Game Theory
• Industrial Organisation
• International Trade and Finance
• Money and Banking
• Natural Resource Economics
• Language module offered by the Centre for Foreign Language Studies

*Can only be chosen as an optional module if the module is not studied as a core

Note that current modules and their contents are indicative and may change in the academic year 2025/2026.

Dissertation

The MSc Behavioural Economics Dissertation is an in-depth investigation of a specific subject you've already studied as part of your programme. Supervised by a faculty member, this is an opportunity for you to develop your insight and present your analysis and ideas in a scholarly and professional manner. There is also the opportunity to undertake your dissertation abroad at a partner university.

Pre-sessional modules

In order to facilitate your learning journey, we offer an online pre-sessional module Introduction to Economics. It features 6 selected topics, providing the main theoretical tools necessary to properly prepare you for advanced modules in Microeconomics and Macroeconomics within our MSc routes. By taking this module, you can develop the essential preliminary knowledge, which is particularly beneficial to students who are new to the field of Economics.

The pre-sessional is fully self-paced and is available to all students in our programmes several months before the first teaching term begins. This module includes:

• Pre-recorded video-lectures, with a list of suggested readings for every topic
• Quizzes for you to check your understanding of the terminology and models discussed in the videos
• Problem sets containing practice exercises (with solutions available).

Additionally, you will have a chance to take the pre-sessional module on Mathematics and Statistics. This course will cover the key concepts from Calculus, Linear Algebra, Statistics and Probability Theory, which are required to study and comprehend Economics at the Masters level.

Additional resources

• Database resources. We have made major investment in our Economics programmes, acquiring state-of-the-art database resources, including Thomson Reuters, Bloomberg, Datastream and Orbis. These valuable resources give you access to live and historical facts and figures relating to the financial records of millions of companies worldwide, adding valuable insight to your research.

• Software for data analysis. The skills of collecting, analysing, and interpreting data are a critical component in the toolkit of a contemporary economist. At our MSc programmes, you will learn how to handle data and do empirical research using R and STATA. You can also be offered extra-curricular training courses on various programming software tailored for applications from different fields of Economics, including applied econometrics and macroeconomics. We have a successful track record of offering a short-term training in Python for our MSc students. Designed and taught by professional data engineers, such courses provide our students with valuable programming skills to assist in advanced research and enhance their careers.

Adding to your experience:

City of London Field Trip and International Opportunities

We offer a range of additional opportunities designed to enhance your academic experience and professional development, or to experience campus life in destinations across the globe. These activities provide valuable skills, expand professional networks, and offer practical insights that complement the formal curriculum. Opportunities on our Masters in Economics programmes include:

• City of London Filed Trip. The field trip to London offers a unique opportunity to meet senior professionals in the financial industry, including chief economists, chief risk officers, and other leaders. It provides invaluable insights from these experts, an understanding of current industry trends, and a view of the challenges and opportunities within the global market. Additionally, you will benefit from networking with these professionals, helping you explore potential career paths in your chosen sector. The list of organisations visited by our students during this trip in the past includes the Bank of England, Bank of China, Crédit Agricole, and Sage.

• Dissertation Abroad. You will be offered the opportunity to apply to undertake your dissertation (research project) at one of our prestigious European partner institutions during the summer months (June to September). This exciting programme provides an opportunity to gain experience living abroad and to build your network, as well as developing an understanding of how campus life works in another destination. Participation in the programme will develop your personal skills, in addition to improving employability by demonstrating adaptability, resilience, communication skills and a global mindset. This partially self-funded programme is very popular and our International Team in the Business School will support your journey from application to departure.

• Summer School. If your ambitions lie beyond the UK, you will have the opportunity to participate in a Summer School at one of our global network of university and business partners. These partially self-funded competitive activities, normally take place after exams in either June, July or August, for up to three weeks. They cover a wide range of topics and aim to complement the knowledge you gain during your time in Durham, whilst contextualising it in an international business setting. Please note, in order to be considered for a place on one of our Summer Schools, all students must apply as places are limited.

Practitioner insights: Guest Speaker Programme

As part of the programme, you will be encouraged to attend presentations by leading academics and professionals who are specialists in your particular area of interest. Combining critical and progressive thinking with practical insight, past speakers have included professional economists from a range of organisations such as: the Bank of England, The Economic and Social Research Institute, the European Commission and the IMF to discuss how they apply core economic skills in their work.

Careers and Employability

By choosing to study the MSc Behavioural Economics programme, in addition to the academic abilities gained, your career development will also benefit from the global reputation of Durham University Business School, from the quality of its teaching to the networking opportunities made available to you.

As a Business School Masters student, you will be supported by an extensive career development programme, which has been designed to complement your academic programme to help you achieve your career goals and develop the skills that employers are looking for. You can take advantage of one-to-one appointments with a specialist Masters Career Consultant to help you with specific issues, from finding a route into your career to applying for your dream role.

Career insight sessions will be delivered by external professionals with expertise and knowledge of their particular sector, which provides insight into working in areas popular with our students.

Whichever career you will choose, the MSc in Behavioural Economics will help you gain the confidence to demonstrate the academic, professional and practical skills that are highly sought by employers around the world, or if you wish to continue your studies, by world-leading PhD programmes. Some of our recent economics graduates have gone on to work in sectors including:

• Consultancy
• Technology
• Financial Services including Accounting
• Government/Public Services
• Energy
• Legal Services