Behavioural Economics:Accounting&Finance

This subject has the following teaching availabilities in 2016:

Estimated total time commitment of 120 hours per semester

None

Successful completion of undergraduate microeconomics subjects is recommended.

ECON30019 Behavioural Economics

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

The subject informs students how behavioural economics extends traditional economics by incorporating insights into human behaviour derived from psychology, sociology and neuroscience and how these insights may be valuable for research into accounting.

On successful completion of this subject, students should be able to:

• explain the behavioural patterns uncovered in behavioural economics;
• explain some of the techniques used by behavioural economics to create knowledge;
• evaluate the contribution of behavioural economics to accounting and finance research;
• synthesise and contrast some of the recently created knowledge for accounting from behavioural economics with knowledge from more traditional accounting research;
• write coherent accounts of issues in behavioural economics;

• A 2-hour end of semester examination (70%)
• A 3000 word essay due three weeks prior to the end of semester (30%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

In terms of cognitive skills, by studying this subject students will improve their ability:

• to explain an argument logically, such as how loss aversion and myopia implies a large premium of equity over bonds;
• to synthesize and contrast different ideas and theories, such as the synthesis of two theories of saving, that is the rational agent theory and the multiple self theory;
• to apply theories to the real world, for example the implications for portfolio choice of mental accounts;
• to evaluate the relevance of competing theories, in particular behavioural economics compared with traditional economics.

At a broader level, this subject will increase students’ awareness of over-arching issues, especially:

• the value of academic research;
• the development of knowledge;
• the contribution of rigorous thinking to solving economic and social problems;
• the interplay of fact, values and theory.