CONTENTS1. PREAMBLE…………………………………………………………………..…………..……………. 22. ECONOMIC THEORY MAJOR………………………………………………………..……………. 3

2.1 Curriculum…………………….……………………………………………………………………. 3

2.2 Pré-réquisites………………………………………………………………………..……………… 4

2.3 Lecture Programme…………………………………………………………………….................... 4

2.4 Tutorial Programme………………………………………………………………………………... 4

2.5 Computer Laboratory Practical Sessions….……………………………………………….............. 5

2.6 Tutors’ Consultation…………………………………………………………………...................... 5

2.7 Assessments………………………………………………………………………………………… 53. APPLIED ECONOMICS MAJOR …………………………………………………………………...... 6

3.1 Curriculum …………………………………………………………………………………………. 6

3.2 Pré-réquisites………………………………………………………………………..……………… 7

3.3 Lecture Programme.…………………………………………………………………....................... 7

3.4 Tutorial Programme…………………………………………………………………………..…… 7

3.5 Computer Laboratory Practical Sessions…..……………………………......................................... 7

3.6 Assessments……………………………………………………………………………….………... 74. ECONOMIC SCIENCE MAJOR..……………………………………………………………………... 8

4.1 Curriculum…………………………………………………………………………………………..4.2 Distinction between the BEconSc. Degree and the Economic Science III Major………………….

8 8

5. DOUBLE MAJORS IN ECONOMICS………………………………………………………………… 96. COURSE CODES………………………………………………………………………………………. 97. COURSE MATERIAL…………………………………………………………………………………. 98. WEBSITES……………………………………………………………………………………………... 99. LECTURERS’ CONSULTATION TIMES……………………………………………………………. 1010. NOTICE BOARDS……………………………………………………………………………………... 1011. GENERAL RULES…………………………………………………………………………………….. 10

11.1 Satisfactory Performance Requirements (SPRs) …….…………………………………………... 10

11.2 Calculation of Marks…………………………………………………………………………..…. 10

11.3 Test and Assignment Marks Appeals…...………………………………………………………... 10

11.4 Rules for Being Excused from Tests, Assignments and Examinations………………………….. 10

11.5 Year Marks and SPRs Appeals………………………………………………….……………….. 11

11.6 Deferred Examinations………………………………………………………………................... 11

11.7 Supplementary Examinations………………………………………………………..................... 11

11.8 Procedures and Deadlines for Final Marks………………………………..…………................... 11

11.9 Test and Examination Extra Time Applications…………………………………………………. 11

12. NEDBANK AND OLD MUTUAL BUDGET SPEECH COMPETITION……………..……. 12

13. ECONOMICS I AND II TUTORING OPPORTUNITIES…………………………………………….. 1314. POSTGRADAUTE STUDIES IN ECONOMICS……………………………………………………... 13

14.1 Why Pursue a Postgraduate Economics Degree(s) at SEBS……………………………………... 13

14.2 Postgraduate Degrees offered by the Economics Division of SEBS………………................... 1414.2.A Honours in Economics or Economic Science…………………………………………… 1414.2.B Masters in Economics (MCom) or Economics Science (MEconSc)……………………. 1414.2.C Doctorate in Economics (PhD)……………………… ……………….………………… 15

14.3 Funding for Postgraduate Studies……………………………………………………................... 15

14.4 What some Former and Current Wits Students have to say about Wits’ Postgraduate Economics Programmes and Degrees…………………………………………………………….

16

14.5 Some Prominent Figures with a Wits Postgraduate Economics Degree..……………………….. 17

14.6 Career Opportunities…………………………………………………………………................... 1715. ECONOMIC RESEARCH CENTRES IN SEBS………………………………………………………. 17

15.1 The Corporate Strategy and Industrial Development Research Project (CSID)…………………. 18

15.2 The African Microeconomic Research Umbrella (AMERU)…………...……………………….. 18

15.3 Centre for Studies in Financial Markets and Macroeconomics (SFM)………………………….. 1816. WITSPLUS CENTRE FOR PART-TIME STUDIES………………………………………………….. 1817. COURSE OUTLINES……………………………………………….…………………………………. 1918. CONTACT INFORMATION: See Back Cover of this Handbook

Dear Student: You are required to read the whole of this handbook and refer back to it repeatedly during the year. You are deemed to be fully aware of its contents.

2

“Economics is the only field in which two people can sharea Nobel Prize for saying exactly the opposite thing.”

1. PREAMBLE

First and foremost, congratulations on successfully completing Economics Level II and welcome to a restructured and invigorating Economics III programme of the Economics Division of the School of Economic and Business Sciences (SEBS) at Wits University. We hope that this handbook provides answers to most of your questions, but we encourage you to consult our support staff (Economics III Administrator) and academic staff (Economics III Programme Coordinator and Lecturers) for assistance and advice as well as the various Economics Division websites for an array of valuable information.

Wits’ sound Economics I programme introduced basic economic concepts, thought, issues and policy. Our rigorous Economics II programme further developed your thinking at the micro and macro levels, and in an open economy context (international finance), with emphasis on the theories which have formed the cornerstones of the discipline, and their applications. Students that selected the applied policy module were exposed to some of the debates relating to contemporary economic policies in the South African economy and to assess whether some of the economic theories in microeconomics, macroeconomics and international economics referred to a particular context. The quantitative economics option introduced students to the application of mathematical and statistical tools to economic analysis.

Revised Economics III Programme: The structure of our Economics III programme that has been in existence for some 15 years was rationalised in 2009. Primary amongst the factors guiding the structural change is a pedagogical reason - to ensure that students gain “depth” (a sound grasp of fewer economics topics of particular interest to the student) rather than “breadth” (superficial knowledge of a wide range of economics issues). From 2009, SEBS offers three majors in Economics, viz., Economic Theory, Applied Economics and Economic Science. Very briefly, the Economic Theory major consists of four compulsory courses, viz., microeconomics, macroeconomics and quantitative economics, i.e. mathematical economics and econometrics. The Applied Economics major also offers four compulsory specialised topics in economics, and their applications in a more focused context. Economic Science, the third major, is a hybrid of Economic Theory and Applied Economics courses; five courses in total. Contingent on the rules of each Faculty, a student may take a double major in economics, i.e. Economic Theory III and Applied Economics III.

Programme Objectives and Postgraduate Studies: One of the objectives of the final year in undergraduate economics is to extend your knowledge of economics, pure and/or applied, and to train you to apply this knowledge to practical and policy issues, the foundation from which you will develop your analytical and research skills. A good pass in the Economic Theory or Economic Science majors (currently an average of 65% or above) is the entrance requirement into Honours in Economics at Wits.

Why is the demand for professionals with formal under- and postgraduate economics training growing rapidly? The study of economics provides a foundation for careers in many fields within and outside commerce, and is central in understanding a wide range of issues, including amongst others , business, markets, domestic and international trade (in goods, services, factors of production and financial capital), government policies (economic and social policies – health, education, welfare, etc.), globalisation, development, and the environment. This programme, and our postgraduate programmes, is not only designed for students intending to become economists and analysts, but also appeals to students in other disciplines that require a solid economic background. The Economics Division of the School of Economic and Business Sciences is one of the most experienced and influential in the country, has produced not only many of the prominent economists and analysts in South Africa, but also graduates and postgraduates employed in leading international institutions, and not surprising, our economics programmes are internationally recognised. “WITS GIVES YOU THE EDGE”

3

2. ECONOMIC THEORY MAJOR

Objectives of major: This stream further develops the capacity to understand and use economics. It provides a detailed analysis and application of conventional and modern competing theories on how the economy functions at both the micro and macro levels, and reinforces the theoretical and quantitative tools acquired in second-year economics required to measure, explain and predict economic and non-economic phenomena.

Outcomes: i) A sound grasp of microeconomics, macroeconomic and quantitative economics (mathematical economics and econometrics); ii) The ability to read and interpret economic literature and apply the theory; iii) The ability to understand the intuition behind the concepts being conveyed and assess the likely impacts of various government policies, regulations and economic shocks.

2.1 Curriculum This stream consists of four compulsory courses (two per semester), viz.: Advanced Macroeconomics (Semester II)Advanced Microeconomics (Semester I)Advanced Mathematical Economics (Semester II)Econometrics (Semester I)

Advanced Macroeconomics: i) Develops a detailed understanding of medium- and long-run macroeconomic models, including key assumptions and policy implications and provides an introduction to issues of long-run and intermediate economic growth; ii) Explores the output, labour and financial markets and their interactions; iii) Looks at the role of expectations in financial markets, consumption and investment decisions and output fluctuations; iv) Extends your understanding of open-economy macroeconomics and foreign exchange rate dynamics; v) Analysis monetary and fiscal policy instruments, and exchange rate regimes in detail, with a particular emphasis on the South Africa policy debate.

Advanced Microeconomics: This course examines the functioning of markets at a micro-economic level. It first presents game theory, that is, choices involving strategy followed by an investigation of how competitive markets work, in both a partial equilibrium and general equilibrium context. It also looks at the impact of government intervention on competitive markets. The second part of the course relaxes the assumption of perfect competition and looks at other market structures including monopolies and oligopolies. Lastly, we turn to the consequences of externalities and the provision of public goods.

Advanced Mathematical Economics: In economics there are many economic models that require some mathematical knowledge to understand and grasp the concepts. This course aims at extending the use of mathematical techniques into economic applications. It will serve as supplementary material for the other economics and noneconomic courses since it can be applied in all fields that may require mathematical analysis. By the end of the course students will have the skill to read and interpret some of the mathematical literature. In addition students will have the ability to understand the intuition behind the concepts being conveyed.

Econometrics: Econometrics is the quantitative analysis of actual economic data in order to lend support to economic theory. The course has a theoretical and applied or practical dimension. In this course we start with the Classical Linear Regression Model, CLRM (and Classical Normal Regression Model). We discuss the assumptions and applications thereof, first in the context of the two-variable regression model, and then extend the analysis to a multivariable analysis.  We then analyse the implications of violating certain assumptions of the CLRM, and discuss remedial measures in such cases. All theory discussed in class is then applied practically in separate weekly computer practicals and tutorials. The tools grasped in this course can be applied to the analysis of noneconomic phenomena as well.

4

The summarised course outlines for each of the above four courses, including the lecturer’s contact information, are on pages 19 to 22 of this handbook. Individual lecturers may provide you with comprehensive course outlines at the beginning of each semester. 2.2 PrerequisitesThe formal entry criteria for this course are Economics I (ECON1000/4), Mathematics I major (MATH1001) or Mathematics I Auxillary (MATH1003) or both Computational Mathematics I (APPM1004) and Business Statistics I (STAT1000), Economics IIA - Intermediate Macroeconomics and Microeconomics (ECON2000/7), and Quantitative Economics IIB - International Finance, Mathematical Economics and Economic Statistics (ECON2001/8). All these admission requirements must be met.

Note: A good pass in this major is the key prerequisite for entry into the Economics Honours Programme at Wits; currently, only students with an overall average mark of 65% or above in this major will be considered for the Honours programme.

2.3 Lecture Programme Economic Theory is taught on the ‘D’ diagonal. For each course, students will attend a double lecture per week. Lecture venues will be posted on the Economic Theory III notice board (2nd Floor, New Commerce Building) before lectures commence. Due to the tight teaching schedule, formal lectures commence on Monday, 1 February 2009. (There will be no introductory lecture. Students seeking assistance or advice must consult the Programme Administrator or Programme Coordinator before lectures commence. The Administrator and Coordinators’ contact details are on the back cover of this handbook.)

Semester I: 1 Feb - 12 March and 23 March - 7 May

Day Time Topic LecturerMonday 12h30 -

14h15Econometrics Kollaparambil Umakrishnan (Dr)

Thursday 08h00 - 09h45

Microeconomics Neil Rankin (Dr) / Aylit Romm (Ms)

Semester II: 12 Jul - 27 Aug and 6 Sept - 25 Oct

Day Time Topic LecturerMonday 12h30 -

14h15Mathematical Economics

Nimisha Rama (Ms)

Thursday 08h00 - 09h45

Macroeconomics Kenneth Creamer (Mr) / Christopher Malikane (Prof)

2.4 Tutorial Programme

Semester I

Day Time Topic TutorTuesday 14h15-15h00 Microeconomics To be announced

(T.B.A.)Wednesday 13h15 -

14h15Econometrics (T.B.A.)

Semester II

5

6 weeks 7 weeks

7 weeks 7 weeks

Day Time Topic TutorTuesday 14h15-15h00 Macroeconomics T.B.A.Wednesday 13h15 -

14h15Mathematical Economics

T.B.A.

Each lecture is followed by a tutorial beginning in either the first or second week of each Semester. Lecturers will inform students of the precise commencement dates of tutorials. The weekly tutorial will be delivered over a single period (45 minutes) in a lecture venue. (Microeconomics tutorials may or may not be offered; lecturer to confirm.) Tutorial questions will be distributed during lectures and/or will be available at reception (Room 107, 1st Floor, New Commerce Building) and/or on the lecturers’ websites. Tutorial venues will be posted on the Economic Theory III notice board (2nd Floor, New Commerce Building) before tutorials commence.The above tutorials serve the same purpose as the tutorials in Economics I and II and the questions must be attempted prior to the tutorial. Significant portions of tests and/or examinations may be structured along the lines of the tutorial questions. For mathematical economics, the student may be required to hand in some questions from the tutorial or a question may be asked during the tutorial that can be used as a component of the final assessment. (See mathematical economics course outline for more information.)

Lecturers and tutors will only assist students who miss a tutorial if the student provides satisfactory evidence of having attempted the tutorial questions. Under no circumstances will any student, including those that attend tutorials, be provided with either a hardcopy of the tutorial solution, or the solution in electronic format. It is, therefore, in your best interest to attend all tutorials or as many as possible.

2.5 Computer Laboratory Practical Sessions Semester I

Econometrics

Day Time Tutor VenueFriday 12h30 - 14h00 (Group 1) and 14h15 - 15h45

(Group 2)T.B.A. T.B.A.

In addition to the weekly tutorial, students must attend one practical session in a computer laboratory for econometrics. (There are no practicals for macroeconomics, microeconomics and mathematical economics.) The econometrics lecturer will inform students of the precise commencement date of tutorials. A student may attend either one of the two sessions in the table above.

The practical sessions are aimed at introducing students to applications of their theoretical knowledge in practice through working with STATA (a complete, integrated statistical package for data analysis, data management, and graphics) and will be guided by tutorial-type instructions and questions, assigned for each week. There will be tutors available to address any problems with the computer application and understanding of the results obtained. The practical instructions and questions will be distributed during lectures and/or will be available at reception (Room 107, 1st Floor, New Commerce Building) and/or on the lecturer’s website.

There will be one econometrics practical exam which makes up a significant proportion of your econometrics year mark. (See econometrics course outline for more information.)

2.6 Tutors’ Consultation TimesTutors’ consultation days, times and venues will be posted on the Economic Theory notice board. We strongly recommend that you utilise this facility optimally.

2.7 Assessments The nature, structure, number and weightings of performance assessments in the final mark of each course are clearly specified in the respective course outlines.

6

Tests, Practical Examinations and AssignmentsTest dates, commencement times, duration, structure and course material to be covered, and assignment questions, due dates and other relevant assessment information will be communicated by the individual lecturers during lectures and on the relevant notice board.

Final ExaminationsAt the end of each semester, a final examination is written for each course undertaken in that semester. The examination dates are set by the Examinations Office. The duration of the examination for each course is 90 minutes. In Semester I, one combined 3 hour paper (Paper I) will be written: 90 minutes on Microeconomics and the other 90 minutes on Econometrics. In Semester II, one combined 3 hour paper (Paper II) will be written: 90 minutes for Macroeconomics and the other 90 minutes for Mathematical economics - Economic Science students registered in the Science Faculty will write only the macroeconomics examination as they are not permitted to register for mathematical economics.

3. APPLIED ECONOMICS MAJOR

Objectives of major: This stream also further develops the capacity to understand and use economics. However, unlike the economic theory stream, it provides a more detailed analysis of economic concepts, theory, issues and policy, and their applications, in a more focused context.

Outcomes: i) A sound grasp of the theoretical underpinnings of applied economics – conventional and modern theories; ii) Graduants will be equipped with the tools to apply theories to real world economic phenomena and deliberate policy recommendations on contemporary economic issues.

3.1 Curriculum This stream also consists of four compulsory courses (two per semester), viz.: Development Economics (Semester I)Economic Thought (Semester II)Financial Economics (Semester II)Labour Economics (Semester I)

Development Economics: Development Economics focuses primarily on the economic, social and institutional mechanisms needed to bring about rapid and large-scale improvements in standards of living for the masses of poor people in developing nations by promoting economic growth and structural change, whether through (domestic or foreign) public, private or international non-governmental development agencies.

Economic Thought: This course provides an overview of the history of economic doctrines, and, to a lesser extent, methodology. It is a course about how the different economic thinkers of the past believed the economy works, and how we can get to grips with it intellectually. The primary objective is to give the student a grasp of the work of some of the most influential thinkers. We will also pay a little attention to economic history, since understanding what was going on in the economy in past times and places helps us to understand how people conceptualised the economy.

Financial Economics: This course is intended to introduce students to the basic theoretical and empirical issues relating to the role of financial markets in the economy, investment, financing and payout decisions of firms as well as saving and investment decisions of individuals. It is expected that by the end of the course students will have a clearer understanding of the inter-relationship between financial markets and the economy as a whole. An understanding of financial markets is essential for understanding a modern economy.

7

Labour Economics: In order to devise solutions to the unemployment problem and other labour market issues we need to understand how the labour market functions and how institutions and other factors are expected to influence the performance of the labour market.  In this course, we will study the standard theories of how labour markets behave, and question some of the assumptions of these theories for developing countries. We will also discuss the South African labour market in the light of each topic. For this, we will make use of the latest available labour market statistics and interpret them. The aim of this course is to enable you to understand the basic theoretical foundations of current labour market policies and to comprehend specific South African labour market issues as well as to know some of the relevant statistical figures (such as the unemployment rate, etc.).

The summarised course outlines for each course, including the lecturer’s details, are on pages 23 to 26 of this handbook. Some lecturers may provide you with comprehensive course outlines at the beginning of each semester.

3.2 PrerequisitesEconomics I (ECON1000/4) or both Economic Concepts 1A (ECON1002/5) and Economic Concepts 1B (ECON1003/6), both Economics IIA - Intermediate Macro and Microeconomics (ECON2000/7) and Economics IIB - International Finance, Mathematical Economics and Economics Statistics or Applied Policy Analysis (ECON2001/8) or both Economic Studies IIA (ECON2003/5) and Economic Studies IIB (ECON2004/6).

Note: This major is not a prerequisite for the Honours in Economics degree at Wits but may be taken as a second major by commerce students and other non-commerce students contingent on the rules applying to the degree for which you are registered.

3.3 Lecture Programme Applied Economics is also taught on the ‘D’ diagonal only. However, the lectures for this stream and the Economic Theory stream are offered in different slots on the ‘D’ diagonal to avoid clashes. For each course in Applied Economics, students will attend a double lecture per week. Lecture venues will be posted on the Applied Economics III notice board (2nd Floor, New Commerce Building) before lectures commence. Formal lectures for this stream commence on Tuesday, 2 February 2009 . (There will be no introductory lecture. Students seeking assistance or advice must consult the Programme Administrator or Programme Coordinator before lectures commence. The Administrator and Coordinators’ contact details are on the back cover of this handbook.)

Semester I: 1 Feb - 12 March and 23 March – 7 May

Day Time Topic LecturerTuesday 17h00 - 18h45 Labour Economics Miracle Ntuli (Dr)Friday 10h15 - 12h00 Development Economics Rubina Jogee (Ms)

Semester II : 12 Jul - 27 Aug and 6 Sept - 25 Oct

Day Time Topic LecturerTuesday 17h00 - 18h45 Economic Thought Michael Stettler (Dr)Friday 10h15 - 12h00 Financial Economics Tendai Gwatidzo (Dr)

8

6 weeks 7 weeks

7 weeks 7 weeks

3.4 Tutorial Programme

No tutorials.

3.5 Computer Laboratory Practical Sessions No practicals.

3.6 AssessmentsThe nature, structure, amount and weightings of performance assessments in the final mark of each course are clearly specified in the respective course outlines.

Tests, Practical Examinations and AssignmentsTest dates, commencement times, duration, structure and course material to be covered, and assignment questions, due dates and other relevant assessment information will be communicated by the individual lecturers during lectures and on the relevant notice board.

9

Final ExaminationsA final examination at the end of each semester is written for each course undertaken in that semester. The examination dates are set by the Examinations Office. The duration of the examination for each course is 90 minutes. An “Examination Paper” consists of an assessment of two courses and the courses will be grouped as follows: In Semester I, one combined 3 hour paper (Paper I) will be written: 90 minutes on Labour Economics and the other 90 minutes on Development Economics. In Semester II, one combined 3 hour paper (Paper II) will be written: 90 minutes for Economic Thought and the other 90 minutes for Financial Economics.

4. ECONOMIC SCIENCE MAJOR

This major, a hybrid of Economic Theory and Applied Economics, is a specialist route that may be taken by Commerce and Science students; B.A. students who wish to register for this course must obtain special permission from the Humanities Faculty.

Objectives of major: It provides a professional education in the disciplines of core economics (macro- and microeconomics), quantitative economics (mathematical economics and econometrics) and applied economics, with a strong emphasis on developing analytical skills.

Outcomes: Same as those for the Economic Theory and Applied Economics majors.

4.1 Curriculum This major consists of five courses. The structure of the major depends on whether a student is registered as a Commerce / Humanities or Science student.

Commerce / Humanities Students Science StudentsAdvanced Microeconomics Advanced MicroeconomicsAdvanced Macroeconomics Advanced MacroeconomicsEconometrics Econometrics Advanced Mathematical Economicsplus plusany 1 elective from the Applied Economics stream*

any 2 electives from the Applied Economics stream*

* The electives offered in the Applied Economics stream in 2010 are:

Development Economics (Semester I)Economic Thought (Semester II)Financial Economics (Semester II)Labour Economics (Semester (I)

Note: All the relevant information in sections 2.1-2.7 (Economic Theory) and 3.1-3.6 (Applied Economics) applies to the Economic Science major as well. An average mark of 65% or above in the Economic Science major is the entrance requirement for Honours in Economics at Wits.

4.2 Distinction between the BEconSc Degree and the Economic Science III Major The Economic Science major is compulsory for students registered for the BEconSc. Degree. For BCom students, the Economic Science major is optional. A BEconSc. Degree and BCom Degree with a major in Economic Science are not equivalent. A BCom student with an Economic Science major that successfully completes her/his undergraduate degree will be awarded a BCom degree with a major in Economic Science and not a BEconSc Degree.

10

5 DOUBLE MAJOR IN ECONOMICS

A student may take a double major in Economics, i.e. Economic Theory and Applied Economics but may not take a double major in Economic Science and Economic Theory or Economic Science and Applied Economics.

6 COURSE CODES

Faculty Economics Major Course Code Wits PointsCommerce Economic Theory III ECON3006 72

Applied Economics III ECON3008 72Economic Science III ECON3007 72

Humanities Economic Theory III ECON3006 72Applied Economics III ECON3008 72Economic Science III ECON3007 72

Science Economic Theory III ECON3006 72Economic Science III ECON3005 72

7 COURSE MATERIAL

See relevant course outlines on pages 19 to 26 of this handbook.

8 WEBSITES

There are four websites that students may visit for an array of course material and companion material.

Economics III Website You will find information on the three economics majors and the course handbook on this website (http://uamp.wits.ac.za/sebs/departments/economics/undergrad/undergrad_main.php).

Individual Lecturers’ Websites This page contains the lecturer’s general information, including contact details, office number, research interests, lecture overheads and handouts (if available electronically), etc. (http://uamp.wits.ac.za/sebs/staff.php). Please note that lecturers use their discretion in providing lecture overheads and other teaching material but are not obligated to provide you with these notes. Find out in advance from your lecturer what material will be available on her/his website and whether the material will be uploaded before each lecture. Material posted on these websites is not a substitute for lecture, tutorial and computer practicals attendance. In fact, we emphasise the importance of attending these teaching sessions.

Textbook Websites Please visit the prescribed and recommended textbook websites for an array of companion material. The website addresses are usually available in either the prefaces or back covers of the textbooks. Should you encounter difficulty in either locating these addresses or accessing the websites, please consult your lecturer for that particular course. We recommend that you also discuss the importance of this material with your lecturer.

Other Websites Some lecturers may instruct you to visit other pertinent websites. Your lecturer will provide you with the website address(es) under such instances.

11

9 LECTURERS’ CONSULTATION TIMES

Lecturers will be available on a certain day(s) during a specific time interval(s) for student consultation. Consultation times will be posted on each lecturer’s door and on the applicable notice boards. Students are strongly recommended to exploit the consultation hours set aside by each lecturer and to adhere to these consultation times. If a student is unable to consult during these times, please make an appointment with the respective lecturer well-in-advance. Note: Mr Creamer (Macroeconomics lecturer) and Dr Michael Stettler (Economic Thought lecturer) are occasional (or part-time) lecturers and consultations must be arranged with them before or after each lecture . These two lecturers do not have formal consultation times.

10 NOTICE BOARDS

There are two separate notice boards on the second floor of the New Commerce Building for Economics III, one for the Economic Theory and the other for the Applied Economics major. Economic Science students must consult both notice boards for important notices, and test and assignment marks. The year marks and final marks, including the breakdown, for the Economic Science major will be published on the Economic Theory notice board. Please consult the relevant notice board on a regular basis. Often, students request information from academic and /or support staff that is already posted on the notice boards. You are deemed, at all times, to be familiar with everything that appears on the applicable notice board. If you miss a lecture, tutorial or practical session, please consult your lecturer or tutor immediately as he/she may have provided essential information in the lecture / tutorial / practical session which may not necessarily be posted on the notice board. All material presented and discussed in lectures / tutorials / practical sessions, in addition to the material in the prescribed textbook or handout(s), may form part of a test, assignment or examination.

11 GENERAL RULES

11.1 Satisfactory Performance Requirement (SPR)

These are clearly stipulated in the course outlines on pages 19 to 26 of this handbook and vary from course to course. It is in your best interest to sit for all tests and/or practical examinations and/or submit all assignments. STUDENTS NEED TO DEVELOP A CULTURE OF WORKING CONSISTENTLY THOUGHOUT THE YEAR AND NOT JUST SHORTLY BEFORE TESTS AND EXAMINATIONS. GOOD PERFORMANCE DURING THE COURSE OF EACH SEMESTER MITIGATES EXAMINATION PRESSURES!!!

11.2 Calculation of Marks

The mark for each course is generated using the weightings stipulated in the respective course outline. The overall mark for a major is generated by applying equal weightings to the final marks of all the courses undertaken. To pass a major, a student must obtain an average mark of at least 50%.

11.3 Test and Assignment Marks Appeals

Test and assignment marks will be published on the relevant notice boards within a reasonable amount of time after writing the test or submitting an assignment. There is no external examiner for tests and assignments, so students are strongly encouraged to check the adding up of marks and see where they have made mistakes. Note: Only in cases of serious error will a test script or assignment be remarked, e.g. a page of the script has not been marked. Any queries regarding these marks will only be entertained strictly within two weeks after the marks have been published. Queries beyond this time period will not entertained.

11.4 Rules for Being Excused from Tests, Assignments and Examinations

Please note that there are no deferred tests and assignments for Economics III! Absenteeism from class tests with good reasons must be promptly reported to Ms Thandi Chamane, the Programme

12

Administrator, in NCB 110A. A valid doctor’s certificate is admissible as good reason for missing a test; other admissible reasons for missing tests are outlined in the Rules Handbooks. Such documentation must be supplied within three days before or after the day of the test. In this case, when the mark sheets are published the relevant column will contain an ‘e’, meaning excused. For a student who has missed a test with good reason, the final mark for the course will be based only on the test and/or assignment and examination(s) written, that is, the test the student was excused from writing will not affect her or his year mark. Students who miss a test without valid reason will be assigned a mark of zero and the relevant column on the results sheet will contain an ‘a’, meaning absent. Backdated medical certificates (and other documentation) are not acceptable. An assignment submitted after the deadline is also awarded a mark of zero. Students may also be refused permission to write the examination if they are found guilty of plagiarism or cheating in class tests or practical examinations or assignments.

11.5 Year Marks and SPRs Appeals

Students wishing to appeal against a refusal to write an examination must present a written case to the Head of School strictly within one week after the year marks have been published. The Head of School may suspend the refusal to write an examination conditionally if there are good grounds for doing so. However, if the Head is unwilling to reverse the original decision, he/she places the student’s representations and his/her own written comments before the Executive Dean for a decision. The decision of the Dean or Appeal Committee is final.

11.6 Deferred Examinations

In the case of not being able to write an examination, a student must inform the respective Faculty, adhering to the formal requirements of the Faculty. The Faculties are responsible for granting Deferred Examinations if an examination is missed with a good reason. The Economics III deferred examinations will be written in November/December 2010. The structure will be displayed on the respective notice boards. Please consult the official examination timetables for the dates, times and venues.

11.7 Supplementary Examinations

The Commerce Faculty grants supplementary examinations to commerce students who obtain a final mark in the 47% to 49% range for a major or credit. Please note that the Science Faculty does not grant supplementary examinations. Humanities students must consult the Humanities faculty for rules pertaining to supplementary examinations. The supplementary examinations for Economics III will be written at the same time as the deferred examinations in November/December 2010. Where a supplementary examination is awarded, the student will have to write only the individual course(s) failed and not all the courses in the specific major. Such information will be posted on the relevant notice board.

NB. It is the students’ responsibility to consult the relevant Faculty in order to determine whether

they have been allowed to write a supplementary examination and to find out details about times and venues.

A student that has been granted a deferred examination will forfeit a supplementary examination.

11.8 Procedure and Deadlines for Final Marks

Should a student be dissatisfied with her/his examination marks, she/he must approach the Programme Administrator (NCB 110A) in order to make an appointment with the examiner to discuss her/his examination mark. Please note, however, that there are no remarks of examinations!

The deadline for appealing examination marks is two weeks after the marks have been published.

13

11.9 Test and Examination Extra Time Applications

Extra time application forms for students with documented disabilities are available from all faculty offices as well as the Disability Unit. Applications must be made before the end of April of each year. All students enrolled at Wits University will need to comply with the University’s policy and procedures and apply to be assessed by the University’s medical team, regardless of any extra time that may have been previously granted. Once extra time has been granted to you by the relevant Dean of the faculty, you will receive a letter of permission which will have to be presented to the Chief Invigilator before every test and examination. You will have to renew your letter of permission at the Disability Unit each year. If you are unsure whether you qualify for extra time or not please contact the Disability Unit in Senate House (East Wing, Ground floor).

12 NEDBANK AND OLD MUTUAL BUDGET SPEECH COMPETETION

This is an annual initiative through which Old Mutual and Nedbank seek to nurture and invest in the next generation of economists, decision makers and thinkers. The competition is a countrywide search for the top economic thinkers at South African universities, and aims to stimulate debate and assist in the development of future leaders in the field of economics. Generous cash prizes are awarded to the three top essays in the undergraduate and postgraduate categories. Entrants in each category will be asked to write an essay on a topic determined by the sponsors.

In the 2009 competition, the maximum length of the essay, including footnotes and tables, but excluding references, was 2 000 words for the undergraduate category. The competition was open to full-time and part-time students registered for an economics course at any recognised South African institution for higher learning. An entrant must have been a South African citizen or a citizen of any of the SADC countries (Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, Swaziland, Tanzania, Zambia and Zimbabwe) or a student holding permanent resident status.

2009 Prizes

Undergraduate category Postgraduate category

1st Prize R30 000 R150 000*

2nd Prize R15 000 R 60 000

3rd Prize R10 000 R 25 000* First prize in this category may be used for educational purposes only, e.g. paying off existing student loans or further tertiary studies.

The sponsors’ closing date for submission of essays in 2009 was mid-May. Wits’ internal closing date for submission is usually a week before the sponsors’ formal closing date. No essays will be accepted after this date.

Undergraduate Category Essay Question for 2010: “Some people are of the view that income inequality is a necessary part of the growth process, that it is generally unavoidable and that policy should focus on ensuring that everyone is doing better rather than focusing on narrowing the income gap. Other analysts argue that income inequality undermines growth and that policies aimed at reducing inequality will support growth too. Based on international experience, economic theory and empirical evidence, what is your view of this important debate?”

Budget Speech Competition website address, essay rules, prizes, contact details of Wits’ convenor for the 2010 competition and other related information to be posted on the Economics III notice boards in due course.

14

The sponsors post references of useful publications you may consult for background reading for your essay as soon as the essay question is released. SEBS may supplement this list for its students.

Please note that this is individual research and avoid working with another entrant. You may, however, consult a member(s) of academic staff at SEBS for guidance or any other form of assistance that is permissible in the rules of the competition. The top 10 contestants in each category, and the respective convenors from the various universities are invited to parliament the following February for the delivery of the Budget by the Minister of Finance. The winners are announced at the banquet attended by the Minister of Finance, representatives from the two sponsors (Nedbank and Old Mutual) and other dignitaries from South Africa and abroad.

All Economics III students are encouraged to participate in this competition. Wits University contestants have been awarded the above prizes on many occasions in the 36 years or so history of the competition and so your chances of being awarded one of the top prizes is high, provided you undertake sound research and write a good essay. Wits’ Tshepo Machele (Mr) won the undergraduate 1st-prize in the 2008 competition. Wits’ Shaista Amod and Shaheen Seedat are two of the 10 finalists for the 2009 undergraduate category; winners to be announced in February 2010. The prize money is just one incentive to enter the competition but the competition also provides you with an opportunity to develop your research and essay writing skills. Prospective entrants are cautioned, though, not to jeopardise their academic performance which is their primary area of focus at University.

13 ECONOMICS I AND II TUTORING OPPORTUNITIES

The Economics Division of SEBS recruits third-year and postgraduate economics students to tutor for mainstream Economics I (tutorials), and Economics IIA (tutorials) and IIB (tutorials and computer laboratory practicals), Introduction to Environmental Economics 1st-year course (tutorials), and Economic Concepts 1st-year course (tutorials).

Who can apply? Students with good academic performance in the pervious year and who will be studying the following in 2010:

Economics II (with 75%+ for Economics I). Economics III (with 70%+ for Economics II). Honours in Economics Masters in EconomicsCandidates that do not meet the academic requirement stipulated above may apply and will be considered should an insufficient number of applications be received.

Where to apply? You can obtain a form from: The Tutor Co-ordinator in Room 234, 2nd Floor, New Commerce Building (Tel: 717-8108). SEBS reception (Room 107, 1st Floor, New Commerce Building) Application forms may also be requested by email (Email address: witsecon@gmail.com)

The closing date for submitting application forms in each year is around mid-January. Late applications are considered if all vacancies are not filled.

Tutors are remunerated for tutoring. Students on the Wits Scholarship programme may tutor to fulfil their contractual obligations. In such instances, a student will only be compensated in monetary terms for her/his tutoring services in excess of the contractual obligations to the university.

14 POSTGRADUATE STUDIES IN ECONOMICS

14.1 Why Pursue a Postgraduate Economics Degree(s) at Wits?

An undergraduate degree does not adequately train you to be a professional in a specific field and postgraduate studies in economics build on the breadth of the first degree and allow greater depth

15

analysis, more opportunity for independent study and research and increases employability. One way to think about career opportunities is to consider the level of earnings typically found with different levels and kinds of education in different careers. Higher and superior quality academic qualifications give you access to better jobs, particularly in terms of remuneration, and promotion prospects.

Wits University is one of the leading universities on the African continent, and also an internationally recognised university, and SEBS is an excellent choice for postgraduate study. We offer some of the most established postgraduate degrees including specialist economics courses (advanced courses in applied economics) and rigorous training in the core components of Economics, viz., macroeconomics, microeconomics, mathematical economics and econometrics. Our postgraduate programmes have evolved over time to meet the dynamics of the economics profession and related professions, be it globalisation or developmental issues, labour market demands and also to ensure that the knowledge base of our postgraduants remain competitive, both locally and internationally. Our postgraduants are well sought after in the local private and public sectors, often before they even complete their degrees, and are also employed by international institutions. A postgraduate degree in economics from Wits places you at the forefront in your profession.

The best time to pursue a postgraduate degree, at least the Honours degree, is immediately after completing your undergraduate studies. So now is the time to seriously consider a postgraduate degree(s) in Economics at Wits!!!

14.2 Postgraduate Degrees offered by the Economics Division of SEBS

SEBS offers the following postgraduate degrees in Economics:

Honours in Economics (BCom Honours) or Economic Science (BEconSc Honours)

Masters in Economics or Economics Sciences (MCom) or Economic Science (MEconSc)

Doctor of Philosophy (PhD) (Economics)

14.2.1 Honours in Economics or Economic ScienceIf you pass either Economic Theory III or Economic Science III with an average mark of 65% or above, you will be considered for the BCom Honours Economics or BEconSc Honours programmes. Candidates from both degrees must complete four core courses (macro, micro, econometrics or quantitative methods, and research methods) and a research paper or long essay; the latter contributed 20% to the final mark in 2009. In addition, BCom Honours Economics candidates must complete two electives whilst BEconSc candidates must complete advanced mathematical economics and one elective. The electives include development economics, environmental economics, financial economics, game theory, international finance, history of economic thought, labour economics, organisation of industry, international trade and public economics. (In any given year, the school offers only some and not all these electives and may also introduce new electives.) In total, a student must successfully complete 6 courses plus the long essay at Honours level. The programme stretches over one year of full-time study or two years of part-time study. Students normally start the Honours programme in February. The long essay or research paper (8 000 – 10 000 words) must be submitted latest end of September (full-time students). Part-time students have to submit their long essay by the end of September of their second year. Note: The syllabus and rules are reviewed annually.

For more information on this programme, please consult Ms Lyndal Keeton-Stolk, Economics Honours Programme Coordinator (NCB200, 2nd Floor, New Commerce Building; Email address: Lyndal.keeton-stolk@wits.ac.za).

14.2.2 Master of Commerce (Economics or Economic Science) or Masters in Economic Science (MEconSc)If you pass any of the two Economics Honours programmes mentioned above with an upper second or better (at least 65%), you may progress to the 5th level (Masters).

A masters degree can be gained by completing the taught masters programme (50% course work and 50% mini-dissertation) or by submitting a mini-dissertation (100% thesis); the latter is not encouraged.

16

The full-time taught masters programme extends over eighteen months; course work is covered in the first 12 months and the mini-dissertation must be submitted no later than 18 months after commencement of degree. Part-time students are given double the time span.

Currently, to complete the MCom (Economics) by coursework, students are required to complete a mini-dissertation plus six papers: two core courses (macro and micro) and four electives. (A mini-dissertation, four core courses - macro, micro, mathematical economics, and time series econometrics or applied econometrics - and two electives for MCom (Economic Science) candidates). In any given year, the electives offered are selected from the following pool of courses, viz., history of economic thought, applied econometrics, applied econometrics and modeling, applied labour economics and inequality, development economics, economic growth, economics of competition and regulation, economics of organization, environmental economics, industrial organisation, institutional economics, financial economics option one - international finance, investment and innovation, financial economics option two - macroeconomics and financial markets, financial economics option three - financial markets, institutions and management of financial services firms, international trade, political economy, public economics, resource economics and South African economic issues. Note: Not all these courses are offered in any given year and new courses may be introduced as well. The MEconSc degree is by dissertation only.

14.2.3 Doctorate in Economics (PhD) The Doctorate degree is the School's highest degree. Currently, the Economics Division of SEBS offers its doctorate degrees only through research (dissertation/thesis). The degree is especially meant for those wishing to pursue a research career in academia (i.e. teaching and researching in a university) or research and advisory services in the private or public sectors or other academic or research institutions. Any candidate with a suitable Masters degree from Wits or any other university is eligible to apply for our doctorate programmes.

The entrance candidates for doctoral degrees register provisionally while they are developing a research proposal. The research proposal must be presented to a department seminar and then submitted to the Faculty's Higher Degrees Committee. Once the proposal is approved, final registration takes place.

The degree consists of a supervised dissertation, done full-time over the course of at least two years or four years part-time. The doctoral dissertation must "constitute a substantial contribution to the advancement of knowledge in the subject chosen, and must be satisfactory as regards literary presentation".

The University of the Witwatersrand also participates in the African Economic Research Consortium (AERC) PhD programme, which was launched in December 2002. For more information on this programme, please visit the following page on the School’s website: http://uamp.wits.ac.za/sebs/departments/economics/postgrad/aerc.htm.

At Honours, Masters and Doctoral level, students will be required to make presentations in seminars, which may supplement or replace the traditional lecture. Postgraduate students may also be called upon to participate in the teaching work of the School, either as teaching assistants or as junior lecturers. Teaching the foundations of economics reinforces a grasp of the basics, and is useful practice for future presentations or lectures. There are also opportunities for postgraduate students to become involved in research and consulting projects of the academic staff. Master's and PhD students are expected to graduate knowing a considerable amount of economic theory as well as how to teach, engage in research and tackle consulting projects.

14.3 Funding for Postgraduate Studies There are numerous sources of funding (scholarships, bursaries and grants) for postgraduate studies at Wits. Visit our Financial Aid Office on East Campus or their website (http://web.wits.ac.za/Prospective/FinancialAid/) for more information on funding opportunities at Wits (internal and external funding). If you intend joining the job market immediately after completing third-year economics and pursuing a part-time postgraduate degree at Wits simultaneously, your employer

17

and financial institutions are additional sources of funding. Frequently, companies and government departments will gladly pay the tuition for postgraduate studies in economics, with the expectation that the student will apply their new skills to help the company or government succeed over the long term.

14.4 What some Former and Current Wits Students have to say about Wit’s Postgraduate Economics Programmes and Degrees

“I have never viewed Economics at University as training for a vocation. For me, Economics provides the analytical skills required to understand the world around me and make appropriate decisions. The Honours programme enhanced my ability to analyse daily world events with a critical eye. On completion of the Honours course I feel confident to take on a multitude of roles in either the private or public sectors. In 2009 I am reading for a Masters degree in Economics while working as an associate lecturer at Wits. It is hoped that the year will further broaden my horizons and raise my marketability in the workplace”.

-

“With a MCom in Economics from Wits University, I was head-hunted by the Automotive Industry Development Centre (AIDC) to undertake research in techno-economic policy aspects of South Africa’s automotive industry. The opportunity enabled me to pioneer policy modeling using system dynamics methodology in South Africa’s policy research space. I plan to apply the modeling approach to other industry/sector policy strategies in future".

-

“Wits offers a diverse and flexible postgraduate economics program. I enjoyed the mix of quantitative and qualitative topics, ranging from econometrics and mathematical economics through to policy analysis. A particular highlight was the philosophy of economics module, co-taught with the philosophy department --- really thought provoking!”(Greg is currently an associate professor of economics at Harvard University in the U.S.A. In 2008 and 2009, Harvard was ranked as the top university in the world by QS.)

-

“I obtained an Honours and a Masters degree in economics from Wits University and I cannot emphasise the benefits I have derived from these degrees. Apart from the intellectual stimulation, these degrees made it easier for me to gain entry into Oxford University and to be able to cope with the rigours of the programmes I pursued there. These courses have also equipped me with the tools to build a career in economics and management consulting.

-

“One of the greatest experiences upon completing a junior degree is enrolling for a postgraduate degree. The Honours and Masters programmes in Economics that are offered at Wits are challenging but rewarding degrees. You get to interact with the key players in the economy such as the Reserve Bank, National Treasury, Statistics South African, the Department of Trade and Industry, and major banks in the private sector. Economists and other professionals from these institutions occasionally visit Wits University, providing relevant information on what they do and the employment opportunities that are on offer. Another opportunity that is created by a Wits postgraduate degree is employment within academic institutions as a research assistant and possibly a lecturer. All the best with your studies and hope you enroll for a postgraduate degree in economics. This can broaden your knowledge, understanding and possibly change your life.”

-

“I have been part of the programmes since 2007 until 2009. Overall, the postgraduate programmes at Wits are good. The content of both the Honours and Masters course work was challenging and at the same time stimulating. The experience has brought both personal and subject matter growth.” (In 2009, Tshepiso was employed by Genesis Analytics, a reputable organization that recruits exceptional people to turn economics into advice, that is, a client-focused strategic and research resource.)

-

“The Economics Honours and Masters programmes at Wits are excellent and I highly recommend them both. Although the jump from third year to Honours may be challenging it is definitely worth the extra effort. Economics Honours teaches you a completely different way of thinking and really opens up your mind to the world of economics. I particularly enjoyed the fact that it's not the typical textbook work of undergrad but rather introduces you to the applications of economics in the real world. For those that are more serious about economics, masters is definitely the way to go. At this point my degree has allowed me to finish my Masters while lecturing part time after which I plan to go into the private sector. The opportunities both locally and abroad are endless and I believe that having a Masters degree is essential for those who plan on working overseas.”

- 14.5 Some Prominent Figures with a Wits Postgraduate Economics

Degree

18

Several leading economists and experts in related fields in both the private and public sectors hold postgraduate economics degrees from Wits University. These include, amongst many others:

Goolam Ballim: BCom Honours in Economics, Wits Currently Standard Bank Group Chief Economist

Lumkile Mondi: BCom Honours in Economics, Wits Currently Chief Economist and Divisional Executive (IDC) (The IDC is a state-owned, self-financing development finance institution)

Maria Ramos: BCom Honours in Economics, Wits Appointed CEO of ABSA in March 2009.

Former CEO of Transnet and Director General (DG) of National Treasury (Accolades: SA’s top performer of the year, 2005; SA’s Top business woman of the year, 2005; Ranked the 14th most powerful woman in business in the world by US Magazine Fortune, 2007)

WITS INDEED GIVES YOU THE EDGE !!!

14.6 Career Opportunities

Economics career education is incredibly versatile and can apply to several specialty fields, cutting across all sectors of the economy. Many of the careers make direct use of the knowledge of economics acquired whilst in some careers knowledge of economics is used only indirectly, but their general problem-solving and analytical skills are nevertheless highly valued. Some career paths are obvious, e.g. economist (private sector, particularly the financial sector, public sector, including parastatals and other government agencies, international organisations, multinationals, NGOs and trade unions), analyst (financial sector, central banks and industry), investment banker, economic consultant, economic researcher, and academic. Others are not that obvious, e.g. community consultant, media analyst or economic journalist, entrepreneur, manager (private and public sector) and management consultant. Some economic postgraduates even progress to be directors, CEOs or MDs of companies and DGs in government at a later stage in their careers. Our postgraduate students are headhunted and find employment relatively easier because of the prestige prospective employers attach to our postgraduate programmes. Key elements of Wits' economics postgraduate programme are the quantitative and analytical skills acquired; the more quantitatively adept you are, the more valuable you are to a prospective employer.

Our postgraduate degree programs in economics immerse the student in a variety of specialized fields and develop a student's ability to research and analyse problems. The career opportunities are not limited to the economics profession only and you are encouraged to consult any one of our academic staff for advice on how to structure your third-year and postgraduate studies curriculum, and discuss your area(s) of interest and career prospects. Some of our academic staff have been previously employed outside academia and/or are currently involved in collaborative ventures with external institutions.

15 ECONOMICS RESEARCH CENTRES IN SEBS

Research opportunities at one of our research centres also expose you to the practical side of economics. The School has attracted a number of internationally acclaimed researchers, and spearheads many exciting and noteworthy research projects. Research opportunities are mainly for postgraduate students but undergraduate students are also recruited occasionally.

19

15.1 The Corporate Strategy and Industrial Development (CSID) Research Project

The CSID project’s core concern is with the relationships between firm strategy and decision-making, and industrial development. Its focus is on applied analysis, especially in relation to responses to trade and industrial policies, and it is firmly rooted in the realities of the South African economy. A range of applied research has been undertaken in recent years, directed in five main areas: i) Industrial development, and manufacturing sector/value chain studies; ii) Local and regional economic development; iii) Competition policy and regulation; iv) Global financialisation and corporate change and the South African Economy; v) Macroeconomic environment, economic structure and industrial development. For more information, please visit the following website: http://web.wits.ac.za/Academic/CLM/SEBS/Research/CSID.

15.2 The African Microeconomic Research Umbrella (AMERU)

The research programme has a number of core aims: i) To produce rigorous data-driven research that is relevant for policy makers; ii) To build networks between South African, African and international researchers working on Africa; iii) To develop research capacity for the analysis of microeconomic data. Research on African microeconomic issues includes firm and labour market dynamics, education, poverty and inequality. AMERU has the capacity and expertise to collect primary data and one aim of the unit is to train post-graduate students and junior staff in data collection and analysis. For more information, please visit the following website: http://web.wits.ac.za/Academic/CLM/SEBS/AMERU.

15.3 Centre for Studies in Financial Markets and Macroeconomics (SFM)

This unit is designed to provide research of impact on financial markets and macroeconomic issues that particularly concern South Africa, other African countries and Emerging Market economies. Key issues of focus include efficiency of financial markets and institutions, growth enhancing financial markets architecture, effective financing arrangement for firms (particularly small to medium enterprises – SMEs), appropriate monetary policies for open-small economies, modeling of output growth for economies characterised by persistent or high unemployment, income distribution imbalance, structural macroeconomic imbalances, and the effects of changes in international production patterns on emerging market economies. These research objectives are pursued via: i) Writing and posting working papers (research-in-progress) and Op-Ed pieces on the web; ii) Organising focused research topic analyses by external and internal associates of SFM; iii) Mobilising government units and businesses on pertinent issues via occasional workshops or training; iv) Compilation and periodic / occasional publication of provincial, country- or market-wide reports. The research outputs seek to foster improved policy effectiveness and design, and to enhance best business application and practice. Other important end products of SFM’s activities are the training of postgraduate students as effective researchers in macroeconomics and capital markets, increasing the scholarship output of SEBS’ staff members, facilitating collaboration and exchange between researchers across institutions and countries, and increasing the awareness of relevant research findings among practitioners and policy makers. For more information, please visit the following website: http://web.wits.ac.za/Academic/CLM/sebs/sfm. Note: You are encouraged to approach the heads of these units for research opportunities, if and only if this does not adversely affect your performance in your studies.

16 WITSPLUS – CENTRE FOR PART-TIME STUDIES AT WITS UNIVERSITYWitsPlus on west campus offers a range of short courses and certificate programmes which may complement your current university curriculum, add value to your current or prospective job and give you access to the Economic Theory III stream and eventually Honours in Economics. (All the quantitative prerequisites for the Economics Theory major, i.e. Computational Mathematics I, Business Statistics I, Mathematical Economics II and Economic Statistics II, are offered on a part-time basis at WitsPlus.) WitsPlus also offers both the Economics Theory III and Applied Economics III majors on a part-time basis, either as a degree or as a certificate, and occasional students may also select any one or more of the courses in each major. For more information, please visit the following website:

20

http://web.wits.ac.za/Prospective/Part-time.

21

ECONOMICS III ECONOMIC THEORY

ECONOMETRICS COURSE OUTLINE

SEMESTER I 2010

1. Scope of CourseEconometrics is the quantitative analysis of actual economic data in order to lend support to economic theory.  In this course we start with the Classical Linear Regression Model, CLRM (and Classical Normal Regression Model). We discuss the assumptions and applications thereof, first in the context of the two-variable regression model, and then extend the analysis to a multivariable analysis.  We then analyse the implications of violating certain assumptions of the CLRM, and discuss remedial measures in such cases.  This course has both a theoretical and practical component. All theory discussed in class is then applied practically in a weekly computer practical and tutorial.

2. Topics to be covered ChapterWhat is Econometrics? Introduction The Nature of Regression Analysis 1Two-Variable Regression Analysis: Some Basic Ideas 2Two-Variable Regression Analysis: The Problem of Estimation 3The Classical Normal Linear Regression Model (CNLRM) 4Two-Variable Regression Analysis: Interval Estimation & Hypothesis Testing 5Extensions of the Two-Variable Linear Regression Model 6Multiple Regression Analysis: The Problem of Estimation 7Multiple Regression Analysis: The Problem of Inference 8Dummy Variables Regression Models 9Multicollinearity & Micronumerosity 10Heteroscedasticity 11Autocorrelation 12

3. Prescribed TextbookBasic Econometrics: D.N Gujarati, McGraw-Hill (4th or 5th edition)

4. Lecturer InformationName: Kollamparambil Umakrishnan (Dr)Office: NCB226Tel: 717-8113Email: uma.kollamparambil@wits.ac.za

5. Student Resources http://uamp.wits.ac.za/sebs/staff_individual.php?id=238

6. Assessment of PerformanceThe final mark will be calculated on the following basis:Class Theory Test: 25%Practical Exam 15%Final Theory Exam: 60%

Pass mark for this course is 50%

7. Pre-requisiteEconomic Statistics II

8. Satisfactory Performance RequirementAttempt of the test and practical examination

9. Teaching Methodology:

22

The students are expected to read the relevant topics from the prescribed text prior to the lecture. The lecture overheads can be downloaded from the course webpage prior to the lecture. Each lecture is followed by a practical session on STATA on Fridays and a tutorial on Wednesdays.

23

ECONOMICS III ECONOMIC THEORY

MACROECONOMICS COURSE OUTLINE

SEMESTER II 2010

1. Course Objectives Provide an introduction to issues of technological change and economic growth Provide an introduction into the impact of expectations on financial markets, consumption,

investment, output and policy Provide an introduction to open economy macro-economics and exchange rate dynamics Provide an analysis of monetary and fiscal policy instruments

2. Lecture Outline Chapter1. The Facts of Growth 102. Saving, Capital Accumulation and Output 113. Technological Progress and Growth 124. Technological Progress: The Short, the Medium, and the Long Run 135. Expectations: The Basic Tools 146. Financial Markets and Expectations 157. Expectations, Consumption and Investment 168. Expectations, Output and Policy 179. Openness in Goods and Financial Markets 1810. The Goods Market in an Open Economy 1911. Output, the Interest Rate, and the Exchange Rate 2012. Exchange Rate Regimes 2113. Monetary Policy and Fiscal Policy 25 & 2614. Revision

3. Prescribed TextbookBlanchard, Olivier ‘Macroeconomics’ – Fifth Edition, Pearson International Edition

4. Lecturer InformationBlock 3 (Lectures 1 to 7) Block 4 (Lectures 8 to 14)Name: Kenneth Creamer (Mr) Name: Chris Malikane (Prof)Office: NCB213 Office: NCB127Email: kenneth.creamer@wits.ac.za Tel : 717-8109

Email: christopher.malikane@wits.ac.za

Note: Mr Kenneth Creamer is an occasional (or part-time) lecturer. Consultations must be arranged before or after each lecture.

5. Evaluation MethodsTest 1: 20%Test 2: 20%Final Examination: 60%Pass mark for this course is 50%

6. Pre-requisite(s)Macroeconomics II

7. Satisfactory Performance RequirementAttempt of the tests

24

ECONOMICS III ECONOMIC THEORY

MICROECONOMICS COURSE OUTLINE

SEMESTER I 2010

1. Scope of Course

This course examines the functioning of markets at a micro-economic level. It investigates how competitive markets work, in both a partial equilibrium and general equilibrium context. It also looks at the impact of government intervention on competitive markets.

The second part of the course relaxes the assumption of perfect competition and looks at other market structures including monopolies and oligopolies. Lastly, we turn to the consequences of externalities and the provision of public goods.

2. Topics to be covered Chapter

Equilibrium and efficiency 14*Market interventions 15*General equilibrium, efficiency and equity 16Monopoly 17 Pricing policies 18 Oligopoly 19 Externalities and public goods 20

*Excluding appendices.

3. Textbook(s)Prescribed: Bernheim and Whinston, “Microeconomics”, McGraw-Hill, International Edition

4. Student Resources Ignite (http://ignite.wits.ac.za or http://lms.wits.ac.za/webct/entryPageIns.dowebct) is the main channel of communication and a key resource for this course. It is up to all students to ensure that they can access this.

5. Lecturer InformationName: Neil Rankin (Dr)Office: NCB203Tel: 717-8098Email: neil.rankin@wits.ac.za

6. Assessment of PerformanceThe final mark will be calculated on the following basis:Test 1: 30%Assignment 1(essay): 20%Final Examination: 50%

Pass mark for this course is 50%.

7. Pre-requisite(s)Microeconomics II

8. Due Performance RequirementsAttempt of the test and submission of the essay

25

26

ECONOMICS III APPLIED ECONOMICS

DEVELOPMENT ECONOMICS COURSE OUTLINE

SEMESTER I 2010

1. What is Development Economics? Development Economics focuses primarily on the economic, social and institutional mechanisms needed to bring about rapid and large-scale improvements in standards of living for the masses of poor people in developing nations.

2. Course Outline ChapterEconomics, Institutions and Development: A Global Perspective 1Comparative Economic Development 2Classic Theories of Economic Growth and Development 3Contemporary Models of Development and Underdevelopment 4Urbanisation and Rural-Urban Migration: Theory and Policy 7The Environment and Development 10Development Policymaking and the Roles of Market, State and Civil Society 11International Trade Theory and Development Strategy (2 lectures) 12Balance of Payment, Stabilization, and Debt Reduction 13

Foreign Finance, Investment and Aid: Controversies and Opportunities 14

A general introduction to some of the contemporary issues dominating economic development debates

3. Prescribed TextbookMicheal P. Tadaro and Stephen C. Smith, Economic Development (10th edition).

4. Lecturer InformationName: Rubina Jogee (Ms)Office: NCB241Tel: 717-8093 Email: rubina.jogee@wits.ac.za

5. Student Resources Lecturer’s website: http://uamp.wits.ac.za/sebs/staff_individual.php?id=272

6. Assessment of PerformanceThe final mark will be calculated on the following basis:Test: 40% Final Examination: 60%

Pass mark for this course is 50%

7. Satisfactory Performance Requirement Attempt of the test

27

ECONOMICS III APPLIED ECONOMICS

ECONOMIC THOUGHT COURSE OUTLINE

SEMESTER II 2010

1. Scope of Course This course provides an overview of the history of economic doctrines, and, to a lesser extent, methodology. It is a course about how the different economic thinkers of the past believed the economy works, and how we can get to grips with it intellectually. The primary objective is to give the student a grasp of the work of some of the most influential thinkers. We will also pay a little attention to economic history, since understanding what was going on in the economy in past times and places helps us to understand how people conceptualised the economy.

2. Course Outline Overview, Introduction, the “Why” questionAncients, Medieval and Mercantilist ThoughtThe PhysiocratsAdam Smith and the Scottish Enlightenment Th. R. MalthusDavid RicardoJohn Stuart Mill and Classical EconomicsThe Reaction to Capitalism: Conservatives, Utopians, SocialistsKarl MarxThe Marginalist RevolutionAlfred MarshallVeblen, Schumpeter, and Galbraith and the New Institutional Economics more generallyJohn Maynard Keynes

3. TextbooksTraditional Textbook: HEILBRONER, R. L. 1999. The Worldly Philosophers: The Lives, Times and Ideas of the Great Economic Thinkers , 7th Rev. edition. London: Penguin Books.

Online’ Textbooks: Barber, W. J. 1967. A History of Economic Thought. London: Penguin Books; Micheal P. Tadaro and Stephen C. Smith, Economic Development (10th edition)

Additional readings to be handed out during the course of the semester.

4. Lecturer InformationName: Michael Stettler (Dr)Office: NCB229Email: michael@synthecon.co.za

Note: Dr Stettler is an occasional (or part-time) lecturer. Consultations must be arranged before or after each lecture.

5. Assessment of PerformanceThe final mark will be calculated on the following basis:Essay: 25% Final Examination: 75%

Pass mark for this course is 50%

6. Satisfactory Performance Requirement Submit essay

28

ECONOMICS III APPLIED ECONOMICS FINANCIAL ECONOMICS COURSE OUTLINE

SEMESTER II 2010

1. Scope of CourseThis course is intended to introduce students to the basic theoretical and empirical issues relating to: the role of financial markets in the economy; investment, financing and payout decisions of firms as well as saving and investment decisions of individuals. It is expected that by the end of the course students will have a clearer understanding of the inter-relationship between financial markets and the economy as a whole.

2. Topics to be coveredFinancial Markets and the EconomyMaking Choices in Risky SituationsFinancial InstrumentsBond Pricing and the Term Structure of Interest RatesIntroduction to DerivativesPortfolio Opportunities and ChoiceThe Capital Asset Pricing model in BriefFinancial IntermediationAsymmetric Information in Financial MarketsCapital Structure TheoryFinancial Development and Growth

3. TextbooksPrescribed: Bodie, Z., Merton, R., Cleeton, D.L. (2009). Financial Economics, 2nd ed, Pearson International Edition.

Recommended Textbooks: Bodie, Kane and Marcus, Investments 5th Ed.; Grinblatt & Titman, Financial Markets and Corporate Strategy, 2nd Ed; Cecchetti, Money, Banking and Financial Markets; Elton and Gruber, Modern Portfolio Theory and Investment Analysis; Bebczuk, R. N. (2003), Asymmetric Information in Financial Markets: Introduction and Applications, Cambridge University Press; Copeland, Weston and Shastri (2005), Theory and Corporate Policy, 4th Ed.

4. Lecturer InformationName: Tendai Gwatidzo (Dr)Office: NCB126Tel: 717-8114Email: tendai.gwatidzo@wits.ac.za

5. Student Resources To be announced.

6. Assessment of PerformanceThe final mark will be calculated on the following basis:Test 1: 20%Test 2: 20%Final Examination: 60%

Pass mark for this course is 50%

7. Assessment of PerformanceStudents must have preferably passed International Finance II

8. Satisfactory Performance Requirements

29

Attempt of both tests

30

ECONOMICS III APPLIED ECONOMICS

LABOUR ECONOMICS COURSE OUTLINE

SEMESTER I 2010

1. Scope of Course In order to devise solutions to the unemployment problem and other labour market issues we need to understand how the labour market functions and how institutions and other factors are expected to influence the performance of the labour market.  In this course, we will study the standard theories of how labour markets behave, and question some of the assumptions of these theories for developing countries. We will also discuss the South African labour market in the light of each topic. For this, we will make use of the latest available labour market statistics and interpret them.  The aim of this course is to enable you to understand the basic theoretical foundations of current labour market policies and to comprehend specific South African labour market issues as well as to know some of the relevant statistical figures (such as the unemployment rate etc.).

2. Topics to be covered ChapterIntroduction 1Labour Supply 2Labour Demand 3Labour Market Equilibrium 4Unemployment 12Compensating Wage Differentials 5Human Capital 6The Wage Structure 7Labour Mobility 8*Labour Market Discrimination 9Labour Unions 10** Students to review on their own Additional handouts will also be made available when necessary

3. Textbook(s)Prescribed: Borjas, G.J (2009) Labour Economics, McGraw Hill, 5th ed.

Recommended: Barker, F (2007) The South African Labour Market Theory & Practice, van Schaik, 5th ed.

4. Lecturer InformationName: Miracle Ntuli (Dr) Office: NCB125Tel: 717-8123Email: miracle.ntuli@wits.ac.za

5. Student Resources Lecturer’s website: http://uamp.wits.ac.za/sebs/staff_individual.php?id=289

6. Assessment of PerformanceThe final mark will be calculated on the following basis:Test 1: 20%Assignment 1: 20%Final Examination: 60%Pass mark for this course is 50%

7. Pre-requisitesMicroeconomics II

8. Satisfactory Performance RequirementAttempt of test and submission of assignment

31

32