MSc in Economics
Course
Class instructor
Economic Growth
Emanuel Gasteiger
Semester
Hours
1st
30
ECTS Credit Units 6
Syllabus Content This course offers an introduction to macroeconomic modeling in general and economic growth in particular. During the course we will make use of a number of models of (non-)stochastic macroeconomic equilibrium to shed light both on the process of economic growth at the world level and on sources of income and growth differences across countries. Thereby we apply analytical and to some extent computational methods for macroeconomic research. Thus, the course provides the ground for conducting research in macroeconomics.
Topics include:
- Overview on economic growth and economic development
- Overview on mathematical methods in macroeconomics
- The Solow-Swan model as a starting point in growth theory
- The Ramsey-Cass-Koopmans model as the central workhorse
- Human capital and economic growth
- First-Generation models of endogenous growth
- Models of endogenous technological change
Note that Overlapping Generations models are covered in the course
Macroeconomics by Vivaldo Mendes
Grading Evaluation is based on a mid-term exam (50%) and a final exam
(50%).
Important: In order to pass the course, a minimum attendance of 80% is required and the final grade should be equal or greater to 10.0.
Main Text Books - Acemoglu, D. (2009). Introduction to Modern Economic Growth.
Princeton University Press.

MSc in Economics
Course
Class instructor
Semester 1st
Hours 30
ECTS Credit Units 6
Syllabus Content
Grading
1. The Classical Multiple Linear Regression Model
2. Ordinary Least Squares Method
3. Finite-Sample and Large-Sample Properties of the Least Squares
Estimator
4. Inference and Prediction
5. Specification Analysis and Model Selection
6. Nonlinear Regression Models
7. Nonspherical Disturbances?The Generalized Regression Model
8. Heteroscedasticity and Autocorrelation
9. Other Estimation Methods: Maximum Likelihood Estimation and
Generalized Method of Moments
The approval in the class can be achieved by continuous assessment or a final examination.
1. Continuous assessment:
Test (50% of the grade); Team Project (50% of the grade).
2. Final exam (100% worth)
Main Text Books
Econometric Methods
José Dias Curto
Greene, W.H. (2008), ?Econometric Analysis?, 6th Ed., Prentice Hall,
New Jersey.

MSc in Economics
Course
Class instructor
Semester
Syllabus Content
Games and Contract Theory
Monika Turyna
2 nd
Hours 30
ECTS Credit Units 6
1. Static games of complete information: normal form games; IESDS;
Nash equilibrium in pure and mixed strategies; existence of Nash equilibrium
2. Applications of static games: Cournot model of duopoly; Bertrand model of duopoly; the problem of the commons
3. Dynamic games of complete and perfect information: backwards induction; Stackelberg model of duopoly; sequential bargaining
4. Dynamic games of complete but imperfect information: subgame perfection; finitely repeated games; infinitely repeated games and folk theorem;
5. Bayesian games: Bayesian Nash equilibrium; incentive compatibility; the revelation principle
6. Static bilateral contracts: screening; signaling; moral hazard; adverse selection
7. Static multilateral contracts: multilateral hidden information; auctions
8. Incomplete contracts: problems of ownership and control
Grading
Main Text Books
1. A midterm exam at the end of October ? 50%
2. A final exam at the end of the semester ? 50%
3. To positively finish the course the final mark should be equal or greater to 10.0
Important: In the performance evaluation, attendance of minimum
80% of class is required
1. Robert Gibbons. A Primer in Game Theory. Princeton University
Press, 1992
2. Patrick Bolton, Mathias Dewatripont. Contract Theory. MIT Press,
2004

MSc in Economics
Course
Class instructor
Semester
Hours
ECTS Credit Units 6
Syllabus Content
Grading
Grading
Main Text Books
Main Text Books
There are no minimum grades as restrictions imposed in order to proceed under this evaluation regime, but students are informed that grades lower than 8 are highly prejudicial for a successful learning process.
Obs. Sample-tests are provided before the tests take place.
1. Wickens, M. (2008) ?Macroeconomic Theory: A Dynamic General
Equilibrium Approach?, Princeton University Press. (cobre todos os pontos)
2. Gali, J. (2008). ?Monetary Policy, Inflation, and the Business Cycle:
An Introduction to the New Keynesian Framework?, Princeton
University Press (ênfase no novo modelo Keynesiano e na política monetária óptima)
3. McCandless, G. (2008). ?The ABCs of RBCs: An Introduction to
Dynamic Macroeconomic Models?, Harvard University Press (enfase no modelo dos ciclos económicos reais)
4. Walsh, C. (2003). ?Monetary Theory and Policy?, 2nd. ed., The MIT
Press. (enfase em questões de política monetária)
Matlab:
1. Griffiths, D. F. (2003). ?An Introduction to Matlab: Version 2.3?,
Department of Mathematics,The University Dundee.
2. Gockenbach, M. S. (2002). ?A practical introduction to Matlab?,
Department of Mathematical Sciences, Michigan Technological
University.

MSc in Economics
Course Cross-Section and Panel Data Econometrics
Class instructor Luís Martins
Semester 2nd
Hours 30
ECTS Credit Units 6
Syllabus Content 1. Panel Data Models
1.1. Introduction
1.2. Basic Linear Unobserved Effects Models
1.3. Endogeneity
2. Discrete Choice Models
2.1. Discrete Response Models
2.2. Censored Regression Models
2.3. Models for Counts
2.4. Sample Selection
3. Duration Analysis
3.1. Hazard Functions
3.2. Model Specification
4. Quantile Regression
Grading The approval in the class can be achieved by continuous assessment or a final examination.
1.Continuous assessment:
Test (50% of the grade); Team Project (50% of the grade).
2. Final exam (100% worth)
Main Text Books Wooldridge J.M. (2001), ?Econometric Analysis of Cross Section and
Panel Data?, MIT Press.
Greene, W.H. (2008), ?Econometric Analysis?, 6th Ed., Prentice Hall,
New Jersey.

MSc in Economics
Course
Class instructor
Financial Econometrics
Rui Menezes
Semester 2nd
Hours 30
ECTS Credit Units 6
Syllabus Content 1. Introduction
1.1. Prices, returns and compounding
1.2. Market efficiency
2. Univariate linear stochastic models
2.1. Stochastic difference equations
2.2. Wold’s decomposition
2.3. Autoregressive models
2.4. Martingales and the random walk hypothesis
2.5. Moving average models
2.6. Nonstationarity and integration
2.7. ARIMA modeling
2.8. Forecasting using ARIMA models
3. Multivariate static and dynamic models
3.1. Static models
3.2. Dynamic models
3.3. Distributed Lag models
3.4. Error Correction models
4. Nonstationarity and cointegration
4.1. Unit root testing
4.2. EG cointegration test
4.3. Vector Autoregression and Vector Error Correction models
4.4. Johansen cointegration tests
4.5. Testing VECM restrictions: exogeneity and weak causality
4.6. Cointegration and structural breaks
4.7. Vector ARMA models
4.8. Impulse response asymptotics
5. Volatility models
5.1. Modeling volatility: integer vs. fractional models
5.2. Autoregressive conditional heteroskedasticity models: ARCH and GARCH
5.3. Asymmetric GARCH models and the leverage effect: TGARCH and EGARCH
5.4. Integrated and fractional integrated GARCH models
5.4.1. Long memory and mean reversion
5.4.2. Estimation issues
5.5. Non-Gaussian disturbances
5.6. Other extensions of ARCH/GARCH models
5.7. Multivariate GARCH models
6. Nonlinearities and switching-regime models
6.1. Threshold models
6.2. Smooth transition models
6.3. Markov switching models
6.4. Switching regime models for the variance

MSc in Economics
Grading
Main Text Books
Continuous evaluation will be based on:
1.
An individual test (80%);
2.
Individual performance and active contribution during the classes (20%).
Continuous evaluation requires that students attend at least 80% of the classes and achieve a minimum grade of 7.5 in the individual test.
There will be no oral evaluation.
Students that fail in the continuous evaluation are still eligible for a one-shot final exam. There will be no oral exam.
Alexander, C. (2008), Market Risk Analysis: Practical Financial
Econometrics (vol II), John Wiley and Sons.
Brooks, C. (2008), Introductory Econometrics for Finance, 2 nd edition,
Cambridge University Press.
Hamilton, J.D. (1994), Time Series Analysis, Princeton University
Press.
Mills, T.C., R.N. Markellos (2008), The Econometric Modelling of
Financial Time Series, 3 rd edition, Cambridge University Press.

MSc in Economics
Course
Class instructor
Semester
Hours
2nd
30
ECTS Credit Units 6
Syllabus Content 1. The beginnings
1.1.Ancient and medieval thought
1.2.State, power and wealth: mercantilism
1.3. Enlightenment and natural order in the economy: physiocracy
2. Classical Political Economy
2.1. Adam Smith: from moral sentiments to the wealth of nations
2.2. The affirmation and consolidation of classical political economy:
Jean-Baptiste Say, Thomas Malthus, David Ricardo and John Stuart
Mill
3. Critical approaches to Classical Political Economy and to industrial capitalism
3.1. Socialism(s): ?utopian? socialists and Karl Marx?s critique
3.2. The Romantic reaction
3.3. The Historicist alternative
4. Marginalism and neoclassical economics
4.1. The ?marginalist revolution?
4.3. Neoclassical economics throughout the XXth century
5. Heterodox perspectives
5.1. American Institutionalism: Thorstein Veblen and John Commons
5.2. Joseph Schumpeter and Evolutionism
6. Keynes and keynesianism
6.1. The theoretical system of John Maynard Keynes
6.2. Keynesian economic policies
7. The return of economic liberalism and current controversies
7.1. Theoretical perspectives: Friedrich Hayek and the ?Austrians?;
Milton Friedman and Monetarism
7.2. Neoliberal economic policies
7.3. Current trends in economic thought
Grading
Main Text Books
History of Economic Thought
Fátima Ferreiro
Luís Carvalho
The evaluation is based on an individual essay followed by discussion.
Backhouse, Roger E. (2002). The Penguin History of Economics.
London: Penguin Books.
Beaud, Michel e Giles Dostaler (1995). Economic Thouoght since
Keynes. London and New York: Routledge.

MSc in Economics
Gide, Charles e Charles Rist (2000 [1944]). Histoire des docrines
économiques depuis les physiocartes jusqu?à nos jours. Paris: Dalloz.
Milonakis, Dimitris and Ben Fine (2009). From Political Economy to
Economics: method, the social and the historical in the evolution of economic theory. London: Routledge.
Pressman, Steven (2006). Fifty Major Economics. London: Routledge.
Roll, Eric (1950 [1938]). A History of Economic Thought. London:
Faber and Faber.
Roncaglia, Alessandro (2005). The Wealth of Ideas: A History of
Economic Thought. Cambridge: Cambridge University Press.
Samuels, Warren J., Jeff E. Biddle e John B. Davis (ed.) (2003). A companion to the history of economic thought. London: Blackwell.
Schumpeter, Joseph (1997 [1954]). History of Economic Analysis.
London: Routledge.
Screpanti, Ernesto e Stefano Zamagni (1993). An Outline of the
History of Economic Thought. Oxford: Oxford University Press.

MSc in Economics
Course
Class instructor
Monetary Theory and Policy
Sérgio Lagoa
Semester 2nd
Hours 30
ECTS Credit Units 6
Syllabus Content 1. The Basic Dynamic General Equilibrium Model
2. Dynamic General Equilibrium Models with a Monetary Sector
3. Money-in-the-Utility Function
4. Money and Transactions: Cash-in-Advance Models
5. Money, Output, and Inflation in the Short Run
6. Money and the Open Economy
7. The Credit Channel of Monetary Policy
Grading
Main Text Books
The module’s grade corresponds to the grade obtained in the exam.
Walsh, C. (2003), Monetary Theory and Policy, MIT Press.