Objectives of the Faculty The general objectives ofthe Faculty of Economics and Commerce Faculty of areto: advance knowledge through teaching and research in the Economics disciplines of , actuarial smdies, business law, and economic history, econometrics, economics, finance, Commerce industrial relations, information systems, and urban and regional economics; contribute to the economic and commercial development of the community by applied research and consulting in these fields, and by research conducted in the Instimte of AppUed Economic and Social Research and the Impact Project; offer undergraduate education in economics and commerce with an appropriate balance of generahst and professional training; offer in a variety of courses ranging from pure and appUed research to advanced coursework for professional qualifications; participate in and contribute to economic and commercial Economics has been taught at the University of Melbourne since development through estabhshed links with the business lSSSvvhenoneoftheUmv'ersity'sfirstfourprofessors.W. E. Hearn, community, government, unions, employer and industry was appointed to teach Pohtical Economy as a component of the associations and other community organisations. Bachelor of Arts degree. A separate Faculty of Commerce was estabhshed in 1924. In 1944 it was renamed die Faculty of Economics and Commerce. Today the Faculty is a leading centre of teaching and research in Faculty courses economics and commerce. Four departments—Accounting and Finance, Economics, Economic History, and Management and Undergraduate Industrial Relations —conduct undergraduate and postgraduate Bachelor of Commerce BCom leaching and research. A Centre for Actuarial Studies was estab­ Bachelor of Commerce (Honours) BCom(Hons) hshed in 1992. Graduate and postgraduate Also within the Faculty is the Instimte of AppUed Economic and in Economics DipEcon Social Research (IAESR). The IAESR has a staff of fuU-time research Postgraduate Diploma in Economic History DipEconHist workers investigating Australian economic, financial, industrial Postgraduate Diploma in Finance DipFin and social problems. in Industrial Relations DiplndRels (PreUminary) Master of Commerce by MCom Studies in Economics and Master of Commerce by a course of advanced smdies with speciaUsations in one of Economics, Finance or industrial Commerce Relations MCom The Bachelor of Commerce (BCom) course aims at developing Master of Taxation MTax critical analysis skdls and the professional competence necessary by thesis and (in Economics) by thesis for a wide variety of careers. with coursework component PhD The 300 points required for die pass degree include four compid­Doctor of Commerce DCom sory subjects and many optional subjects which can be chosen Faculty of Arts courses with economics units according to students' interests and career objectives. Bachelor of Arts (Economics or Economic IUstory) The BCom (Hons) degree aUows smdents to speciaUse in an area Bachelor of Arts (Honours) (Economics or Economic History) they have chosen during dieir work for the pass degree. The Master of Arts (Economics, Econoinic History or Industrial provides the basis to continue to masters and PhD Relations) candidature. Postgraduate Diploma in Public PoUcy The Faculty offers graduate courses dirough coursework and research training. Postgraduate courses offer advanced smdies at various levels in speciaUsed areas. A separate postgraduate course guide is available. The University ofMelbourne Handbook 1994 Volume 3

Smdents must gain behveen 87.5 and 125 points at 100-level and Planning an undergraduate course at least 75 points drawn from 300-level subjects. Bachelor of Commerce Studenis may take up to 110 points from subjects taught by other Requirements of the BCom degree faculties. TheBachelorofCommerce (BCom) ordinarydegree consists of 24 Studenis must pass prerequisite subjects before they will be permit­ semester subjects or the equivalent, taken fuU-time over three yearste d to proceed. or part-time over six years. Each semester subject taught by the Faculty of Economics and Commerce has a value of 12.5 points. Course planning and specialisations The 300 points (rrunimum) required for the BCom must include The Faculty favours flexiblecoursesofsmdywhichwillsiiitstudents' four compulsory subjects totalling 50 points: career interests. Course plans in this section are recommended but 316-101 Introductory Macroeconomics not mandatory. The)' are intended as guides to students seeking to 316-102 Introductory Microeconomics specialise Many variations or combinations of subjects are possi­ Note. From 1994, 316-201 Intermediate Macroeconomics and ble. 316-202 Intermediate Microeconomics are no longer compulsory. First-vear studenis receive individual assistance in planning their However, students should note that from 1995 316-202 courses when they enrol in February. In September each year, Intermediate Microeconomics is a prerequisite for third continuing undergraduate smdents plan their courses for the year Accounting subjects. following year. Course plans can, however, be changed when Either 316-130 Quantitative Meihods 1 (or an approved equiva­ smdents re-enrol in December and January. Proposed study plans lent) and 316-206 Quantitative Meihods 2 must meet the requirements for the BCom degree. or 316-129 Business Statistics and 316-205 Introductory Smdents are welcome at any time during the year to consult Econometrics * academic staff, the Associate Dean (Undergraduate Smdies), ad­ i ministrative officers in the Faculty Office and course advisers in Exemption is available from 316-130 Quantitative Methods 1 if a departments. student has passed two level-one Mathematical Sciences subjects (one of which must be 617-152 Mathematical Sciences for Economics or 617-160 Scientific Programming and Statistics or Mathematical Sciences, Econometrics and 617-170 Discrete Mathematics and Statistics). Quantitative Methods Mathematics, statistics, econometrics and operations research are of increasing relevance in accounting, economics and finance. For OBJECTIVES stiidents with a particular interest and aptitude in this area, the Bachelor of Commerce Course Facully offers a specialisation in econometrics vvhich includes On compledon of the undergraduate commerce subjects in madiematics and statistics (Faculty of Science) in its first course smdents should: o year. • have an understanding of basic concepts and Smdents seeking to specialise in other areas (particularly econom­ instimtional arrangements operating in the ics and money, banking and finance) are encouraged to take the Australian economy, following subjects in madiematical sciences in first year • be able to communicate effectively on matters 618-101 Mathematics 1A or 618-151 Mathematics for Economics of commerce, and in particular to have (both offered in first semester). developed the writing skills diat are necessary Those who enjoy a madiematical approach to Economics can also for the pursuit of careers in the professions or take the second-year subject Mathematical Economics offered by disciplines operating in commerce; the Department of Economics. • have developed skills in the basic quantitive Smdents who have passed VCE Change and Approximation (1/2 methods used in the study ofthe economy, level), Extensions (Change and Approximation) (3/4), Space and commerce and government; Number (1/2 or 3/4) and Reasoning and Data (1/2 or 3/4) may • have acquired skills in analysing and solving seek permission from the Faculty of Science to enrol in 618-101 problems and a commitment to seeking ' [ Mathematics IA solutions by reference to observable data and a Those who have passed Change and Approximation (1/2 or 3/4) knowledge ofthe behaviour of groups in the plus one ofReasoning and Data (1/2 or 3/4) or Space and Number economy, (112 or 3/4) may enrol in 617-151 Mathematics for Economics. • have a critical understanding of die economy All first-year students must enrol in the compulsory economics and and business and ofthe need to manage the statistics subjects and five optional subjects. economy for the benefit of all groups in Smdents with an aptitude in mathematics should enrol in 316-129 society, Business Statistics. Students who are not confident of their abihty • have a basic lev el of knowledge and skills in in calculus should enrol in 316-130 Quantitative Mediods 1, the several disciplines and a more specialised level compulsory Economics subjects and five other level-one subjects of knowledge and skills in one or more drawn from Commerce, Arts or Science. disciplines taught in the faculty: accounting, actuarial studies, business administration, business law, economics, econometrics, economic history, finance and industrial relations; • have a capacity and motivation for continued learning.

198 Faculty of Economics mid Commerce Introduction

Bachelor of Commerce Course 316-303 Industrial Economics Social Economics 316-304 Pubhc Finance Actuarial Studies 316-305 Money and Banking 300-101 Actuarial Studies I 316-306 Labour Economics 300-201 Acturial Principles 316-307 Agricultural Economics 300-202 Ufe Insurance Mathematics 316-309 Economic Transition in the Former Soviet Bloc 300-203 Mathematics in the Financial World 316-310 Countries 300-204 Demography, Insurance and Superannuation Marxian and Post-Keynesian Economics 300-301 The Actuarial Control Cycle 316-311 Macroeconomics 300-302 Actuarial Statistics ' 316-312 Microeconomics 300-304 Risk Theorv 316-313 Urban Economics 316-314 Regional Economics Accounting and Finance 316-315 Basic Econometrics 306-102 Accounting Concepts 316-316 Econometrics 306-103 Accounting IA 316-317 Econometric Modelling 306-104 Accounting IB 316-318 306-201 Intermediate Managerial Accounting 316-319 Japanese Economy 306-202 Intermediate Financial Accounting 316-320 Special Topics in Economics 306-203 Business Finance 316-321 Chinese Economy 306-205 Business Computing 316-323 Privatisation and Regulation 306-207 Accounting Information Systems 316-324 Environmental Economics 306-301 Financial Accounting 316-325 Development of Neoclassical Economics 306-302 Managerial Accounting 316-326 Economic Analysis and Pohcy 306-304 Auditing 316-350 Time Series Analysis and Forecasting 306-305 Management of Financial instimtions 316-351 Economics of Financial Markets 306-306 Special Topics in Accounting and Finance 316-352 Quantitative Business Analysis 306-307 Management Information Systems 316-449 Financial Econometrics 306-309 Corporate Finance 316-450 Game Theory and Information Economics 306-312 Personal Financial Management 316-451 Open Economy Macroeconomics 306-311 International Finance 316-460 Advanced Restrictive Trade Practices 306-331 Investments 316-462 Pubhc Economics 306-401 Financial Management 316-465 Industrial Relations 306-461 Advanced Financial Accounting 316-466 Monetary Economics 306-462 Advanced Managerial Accounting 316-467 Issues in Microeconomic Analysis and Pohcy 306-463 Advanced Finance 316-468 General Equihbrium and Welfare Economics 306-464 Advanced Information Systems 316-469 Financial Economics 306-465 Advanced Topics in Accounting and Finance 316-470 Econometric Techniques 306-466 Research Methods in Accounting and Finance 316-473 Regional and Urban Econonucs 306-467 Accounting and Finance Research Essay 316-475 Economics Research Essay (whole-year 306-468 Numerical Techniques in Finance and subject) investments 316-476 Special Topics in Economic Analysis Business Law Management and Industrial Relations 306-101 Introduction to Business Law 327-101 Management 308-120 Law and Business 327-209 Human Resource Management 308-121 Law of Business Transactions 327-201 Organisational Behaviour 308-220 Law of Busmess Organisations 327-202 Principles of Organisation 308-221 Corporate law 327-203 Managing Company Operations 308-301 Business Regulation 327-301 Marketing I 308-302 Banking and Finance Law 327-302 Marketing II 308-303 Taxation Law 327-308 Industrial Relations 308-304 Labour Law 327-331 Comparative Industrial Relations 308-305 Law of Insolvency 327-332 Industrial Relations Pohcy 308-307 Comparative Business Law - Malaysia 327-401 Advanced Organisational Behaviour 308-310 Law and Labour Relations in East Asia and the 327-402 Advanced Human Resource Management Pacific Rim 327-403 Management and Industrial Relations Research 308-406 Taxation of Business Entities Essay 308-468 Special Topics in Business Law Economic History Economics 326-102 Austraha in the Global Economy 316-101 mtroductory Macroeconomics 326-103 The Asian Economies 316-102 hitroductory Microeconomics 326-201/301 Business in American I Ustory 316-121 Regional and Urban Development 326-224/324 The Consumer Age 316-129 Business Statistics 326-226/326 Business and Development in Southeast Asia 316-130 Quantitative Meihods 1 326-228 Management Strategies and Business 316-201 Intermediate Macroeconomics Development 316-202 mtermediate Microeconomics 326-229/329 Labour IUstory 316-205 Introductory Econometrics 326-205/305 Thejapanese Business System 316-206 Quantitative Methods 2 326-306 Tlie Great Economists 316-207 Mathematical Economics 326-307 Economic PoUcy Debates: Past and Present 316-301 International Economics 326-308 Econonuc Problems in Historical Perspective 316-302 Economic Development 326-424 The European Community: Economic Change

199 The University of Melbourne Handbook 1994 Volume 3

and Integration Commerce and Arts 326-425 Development of Capital Markets, Banks and For the combined BCom/BA degree students must complete a Businesses 326-426 Advanced Studies in Southeast Asian Economic minimum of 500 points of which at least 200 must be Commerce Development points. The course plan must include: 326-466 Economic History Research Essay • at least 50 Commerce points from 100-level subjects; 326-470 Theory and Method in the Social Sciences • at least 50 Commerce points from 300-level subjects; 326-471 Austrahan Economy in the Long Run • compulsorysubjects:3l6-101 IntroducioryMacroeco-nomies, 326-480 Special Topics in Economic History 316-102 Introductory Microeconomics, and either 316-130 Mathematical Sciences Quantitative Methods I and 316-206 Quantitative Methods 2 or 617-160 Scientific Programming and Statistics 316-129 Business Statistics and 316-205 Introductory Eco­ 617-170 Discrete Mathematics and Statistics nomics (i.e., a total of two statistical method subjects). 617- 152 Mathematical Sciences for Economics /Vrts subjects must be chosen from those tiiught within the Faculty 618- 100 Mathematics 618-101 Mathematics IA of Arts by the Departments or Schools of Asian Languages and 618-102 Mathematics IB Anthropology, Classical and Near Eastern Studies, Criminology, 618- 151 Mathematics for Economics 1 English, FineArts, French and Italian Studies, Geography, Germanic 619- 210 Probability and Statistics (whole-year subject) Smdies and Russian, History, History and Philosophy or Science, Interdepartmental Programs, Music, Philosophy, Pohtical Science, Combined and double degrees Psychology, and Linguistics and Language Smdies. A rninimum of 500 points is required for the award of two degrees. The normal requirements for the ordinary BCom degree apply, Commerce and Law except that combined course students in Arts/Commerce, Science/ The BCom/LLB cou rses can be combined over five years of full-time Commerce and Engineering (Civil)/Commerce will be required to study. Students already enrolled in the Commerce course may apply complete a minimum of200 points drawn from subjects taught by for entry to the combined course and should consult the General departments in the Faculty of Economics and Commerce. Manager (Law) for complete details. As well as the prescribed law At present there are approved courses that combine the Bachelor subjects, studenis must pass at least 200 points of approved of Commerce with the Bachelor of Laws, the Bachelor of Arts, the Economics andComrnerce subjects. Thenon-Commerce level-one Bachelor of Science or the Bachelor of Engineering (Civil Engineer­ subject (25 points) may count as two Economies and Commerce ing). Other double degree combinations are also possible. subjects. The approved order of subjects is as follows. First year Commerce and Science Torts and the Process of Law Students taking a combined BCom/BSc course must complete a History and Philosophy of law minimum of 500 points, at least 240 of which are Science points, A total of six Commerce semester subjects (75 points) mcluding: including: • at least 75 Science points from Group A subjects at 100-level; Introductory Macroeconomics, Introductory Microeco-nomics, Quantitative Methods 1 or Business Statistics, plus diree of: • up to 140 Science points from 100-level subjects; Approved non-Commerce 100-level subjects (maximum 25 • al least 50 Science points from 300-level subjects. points) These subjects must be chosen from Science subjects taught within the Departments or Schools of Agriculture and Forestry, Genetics, Second year Anatomy, Mathematical Sciences, Biochemistry, Microbiology, Bi­ Constitutional and Administrative Law ology, Pathology, Botany, Pharmacology, Chemistry, Physics, Com­ Contracts puter Science, Physiology, Civil Engineering, Psychology, Earth A toted of six Commerce semester subjects (75 points) Sciences, Surveying, Electrical and Electronic Engineering and including: Zoology. Quantitative Methods 2 Students must also take at least 200 Commerce points, including: Additional approved Commerce subjects • 50 to 125 points from 100-level subjects; Third year • at least 50 points from 300-level subjects; Property • compulsory subjects: 316-101 Introductory Macro­ Criminal Law economics, 316-102 Introductory Microeconomics and two 50 points of 300-level Commerce subjects Statistical Melhod subjects (or approved equivalent subjects in Mathematics/Statistics). Fourth year Third-year Law These subjects must be chosen from subjects laughtbydepartments in the Faculty of Economics and Commerce. Fifth year Note: Mathematics subjects count towards the Science points. Fourth-year Law Note: Combined Commerce/Law students do not take any of the Commercial Law subjecls taught within the Faculty of Economics and Commerce. Students are eligible for admission to the degree of Bachelor of Com merce on completion of the fi rst fou r years of the combined course.

200 Faculty of Economics and Commerce Introduction

BCom (Hons) [Economics]/LLB Third year Two Economics and Commerce subjects (25 points) First year Eight subjects specified by the Engineering Faculty Torts and the Process of Law History and Philosophy of Law Fourth year A total of six Commerce semester subjects (75 points) Four Economics and Commerce subjects (50 points) including: SLx subjects specified by the Engineering Faculty Introductory Macroeconomics, Introductory Microeco-nomics, Quantitative Methods 1 or Business Statistics plus three of: Fifth year Accounting IA Eight Economics and Commerce subjects (100 points) Accounting IB Three subjects specified by the Engineering Faculty Austraha in the Global Economy The Asian Economies Other double degrees Regional and Urban Development Students may also wish to take a double degree (the BCom with Business Computing another ordinary degree) which is not an approved combined Approved non-Commerce (100-level) subject degree course in the University. This requires passes or credits for at least 300 points approved by the Facidty of Economics and Second year Commerce. At least 200 of these points must be from economics Constitutional and Administrative law and commerce subjects, including all the compulsory subjects and Contracts a total of four level-three subjects (50 points). A total of six Commerce subjects including: Quantitative Methods 2 or Introductory Econometrics. Two approved level-two Commerce subjects Bachelor of Commerce (Honours) Third year Students who have reached the required standard must make a International Economics, Macroeconomics, Microeco-nomics, formal appUcation to the Assistant Registrar for admission to fourth- and Basic Econometrics or Econometrics plus year honours. Those who seek fourth- year honours must ascertain Two approved level-three subjects from the ordinary Commerce from the head of die relevant department whether any additional degree (including further level-three Economics subjects if work or special subjects will be reqiured at third year level. If desired) and Criminal Law planning to change speciaUsation, students should consult the head Note: Pennission may be granted to replace two level-three ofthe appropriate dqiartment for advice on any requi red additional Economics subjects with Property, provided hvo level-three work. Economics subjects are then taken in fourth year. EfigibiUty to enter the honours degree is based, in the first instance, Fourth year on achievement of an average of H2B in at least four subjects at300- levcl in the intended area of speciaUsation (including subjects General Equihbrium and Welfare Econonucs plus another level- nominated by the department as relevant to the discipline). Such four Economics subject students, provided their previous academic record does not in­ Two further level-four Economics subjects clude any fadures, areentided toenrol in the honours year. Smdents Research Essay in Economics who do not qualify under this rule will be considered in die light of Property their academic record. Fifth year Intending honours studenis should lodge a formal appUcation, on Third-year Law die form obtainable from the Faculty Office, with the Assistant Registrar no later than one vveek after the publication of third-year Sixth year residts. Fourth-year law The subjects to be recognised for the purpose of honours eligibility are as follows. Commerce and Engineering (Civil Engineering) The BCom and BE courses degrees may be combined over five Economic History years of full-time study. Students must pass a total of 16 300-level subjects with either a 326 or 316 prefix, provided that at Economics and Commerce subjects (200 points), including: least three of the four subjects be selected from the following: • four compulsory subjects: Introductory Macroeconomics, 326-329 labour History Introductory Microeconomics, and hvo statistical method 326-326 Business Development in Southeast Asia subjects 326-305 Thejapanese Business System • at least four level-one subjects (50 points) 326-306 The Great Economists • at least four level-three subjects (50 points) 326-307 Economic PoUcy Debates: Past and Present 326-308 Economic Problems in Historical Perspective First year The common first year for all BE degrees Economics The best four results in 300-level subjects with a 316 prefix. Second year (25 points of Commerce) 316-101 Introductory Macroeconomics 316-102 Introductory Microeconomics Seven subjects specified by die Engineering Facidty

201 7be University of Melbourne Handbook 1994 Volume 3

Accounting and Finance Smdents are required to complete eight units in fourth year 300-level subjects offered wiihin the Faculty of Economics and honours, two of which comprise the Research Essay double unit Commerce, including two subjects offered by the Department of Compulsory subjects for all honours year studenis in Accounting Accounting and Finance, al least one of which is to be from the and Finance are: following: 306-466 Research Methods in Accounting and Finance; and 306-301 Financial Accounting 306-467 Accounting and Finance Research Essay 306-302 Managerial Accounting (double unit) 306-307 Accounting Information Systems The remaining five units should be chosen to include at least one 306-331 Investments of the following core subjects and four other subjects which Accounting and Finance/Economics complement the specialisation. The remaining subjects can be 316-313 Microeconomics plus one of3l6-301 International Eco­ chosen from any subject taught within die Facidty or subjects nomics, 316-312 Macroeconomics, 316-316 Basic Econometrics, chosen from another Faculty as approved by the head of the plus the best two 300-level subjects offered by the Department of department. No morethan two level-three subjects can be included Accounting and Finance, at least one of which is to be from the in the program of smdy. following: The core subjects for the respective honours specialisations are: 306-301' Financial Accounting 306-461 Advanced Financial Accounting 306-302 Managerial Accounting 306-462 Advanced Managerial Accounting 306-307 Accounting Infonnation Systems 306-463 Security Analysis 306-331 Investments 306-464 Advanced Information Systems "Stiidents should note that preliminary work in Accounting and " Finance courses will commence prior to normal scheduled classes and smdents should be available for honours activities Economics from the first week of February of their honours year. Third year 316-313 Microeconomics Economics/Economic History Plus one of: 316-313 Microeconomics plus one of 316-301 International Eco­ International Economics nomies, 316-312 Macroeconomics, 316-316 Basic Econometrics Macroeconomics or 316-317 Econometrics, plus the best hvo of the following: 316-316 Basic Econometrics or 326-329 Labour History 316-317 Econometrics 326-326 Business Development in Southeast Asia Two additional approved subjects widi a 316 prefix from die full hst 326-305 Thejapanese Business System of level-three Economics subjects. 326-306 The Great Economists Four approved level-two or level-three subjects from the course for 326-307 Economic Pohcy Debates: Past and Present "die ordinary degree (may mclude further Economics subjects; 326- 308 Economic Problems in Historical Perspective f combined law/Commerce students may take an approved Law subject in place of two of these subjects). Matuxgement and Industrial Relations International Economics, Macroeconomics, Microeconomics, and 300-level subjects offered wiihin the Faculty of Economics and either 316-316 Basic Econometrics or 316-317 Econometrics Commerce including at least hvo subjects selected from the must all be taken during either the diird or fourth year. following: Smdents are strongly advised to give early consideration to a topic 316-307 Labour Economics for their fourth-year research essay. They should obtain approval 316-308 Industrial Relations for it from an adviser by the start of fourth year. 327- 331 Comparaiive Industrial Relations 327-332 Industrial Relations Pohcy Fourth year General Equilibrium and Welfare Economics and one other level- four Economics subjecL Honours specialisations Two subjects from level-four subjects in the Department of Eco­ Accounting and Finance nomics. The Accounting and Finance honours program has been developed Two approved level-three and level-four subjects taught in the with four major specialisations: Faculiy of Economics and Coihmerce or an approved outside Financial Accounting subjecL Combmed Law/Commerce students may take an approved Managerial Accounting Law subject Smdents who have not taken International Economics, Macroeconomics and either 316-316 Basic Econometrics or Finance 316-317 Econometrics should ensure that they are mcluded in their Accounting Infonnation Systems fourth year. In die honours year (fourth year), students may undertake an Economics Research Essay approved program of study in any one of die above specialisations or, alternatively, may undertake a combination of specialisations, constituting a genered honours program. Each of the honours specialisations has a compulsory core subject (see below), wiiich will have prerequisites al the third year (and perhaps second year) level. It is also recommended that 316-352 Quantitative Business Analysis is completed prior to fourth-year honours study.

202 Faculty of Economics and Commerce Introduction

Economic History Economic History/Economics Third year Third year By the end of the third year candidates must have completed the By the end of the third year candidates must have completed the requirements for die ordinary degree with a specialisation in requirements for entrance to the honours degree in Economic Economic History (normally at least at second-class honours History and in Economics. Candidates must have taken 316-313 level). Combined Law/Commerce students may limit their Law Microeconomics and are expected to take at least one of the siudies to one subject approved by the Faculty of law. following level-three Economics subjects: International Economics Fourth year Macroeconomics Theory and Method in the Social Sciences 12.5 316-316 Basic Econometrics or Austrahan Economy in the Long Run 12.5 316-317 Econometrics Development of Capital Markets, Banks In the event that the smdent is enrolled in the Research Essay in and Businesses 12.5 Economics and has not previously taken Basic Econometrics or The European Community: Economic Econometrics, then one of these subjects must be taken in fourth Change and Integration 12.5 year. Economic History Research Essay 25.0 Four approved level-three subjects in Economic History, or hvo Fourth year level-three subjects in Economic History pins hvo approved level- General Equilibrium and Welfare Economics and one other level- three or four subjects drawn from the Department of Economics, four Economics subjecL or hvo level-three subjects in Economic Historypltts an approved 326-470 Theory and Method in the Social Sciences subject in the Faculty of Arts. Combined Law/Commerce students 326-471 Australian Economy in die Long Run may take an approved Law subject in place of hvo of these subjects. One level-three or level-four Economics subject. If neither The approved level-three subjects in Economic History are: 316-301 International Economics nor 316-316 Basic Econometrics 326-305 Thejapanese Business System were taken in third year, then one of these subjects must be taken 326-306 The Great Economists in fourth year. 326-307 Economic Pohcy Debates: Past and Present One level-three or level-four Economic History subject chosen 326-325 Economic Problems in Historical Perspective from the following list: 326-329 Labour IUstory 326-229/329 Labour History 326-326 Business and Development in Southeast Asia 326-205/305 Tlie Japanese Business System 326-226/326 Business and Development in Southeast Asia Accounting/Economics 326-227/327 Business in American History 326-307 Economic Policy Debates: Past and Present Third year 326-308 Economical Problems in Historical Students intending to do honours in Accounting/Economics must Perspective take eight subjects which include the following: 326-424 The European Community: Economic Change 316-313 Microeconomics and Integration One of International Economics, Macroeconomics, Basic 326-425 Development of Capital Markets, Banks Econometrics or Econometrics. and Businesses Two additional approved subjects from the full hst of level-three 326-426 Advanced Smdies in Soudieast Asian Economics subjects. Economic Development One of Financial Accounting, Managerial Accounting, Business 326-480 Special Topics in Economic History Finance 1 or Accounting Infonnation Systems and one further A research essay on a topic approved by the heads of the level-three subject in Accounting and Finance. Departments of Economics and Economic History. Fourth year Research methods in Accounting and Finance and one of Advanced Management and Industrial Relations Financial Accounting, Advanced Managerial Accounting, Security Third Year Analysis or Advanced Information Systems. In the event that the By the end of the third year candidates must have completed the student is enrolled in die Research Essay in Economics, the smdent requirements for the ordinary degree with a specialisation in must substitute another subject in die preceding hst for Research Management and Industrial Relations (normally at least at second- Methods in Accounting and Finance. class honours level). General Equihbrium and Welfare Economics and one other level- four economics subjecL Fourth Year One level-three or level-four subject from the Department of Industrial Relations 12.5 Accounting and Finance. Advanced Orgamsational Behaviour 12.5 One level-three or level-four subject from die Department of Advanced Human Resource Management 12.5 Economics. Management and Industrial Relations Essay 25 A research essay on a topic approved by the heads ofthe Department The remaining three subjects must be chosen from any other of Accounting and Finance and the Department of Economics. subject taught by the Faculty as approved by the Head of Depart­ menL No more than hvo level-three subjects can be mcluded in the program of smdy.

203 Tlje University of Melbourne Handbook 1994 Volume 3

The BCom course — some Japanese Politics Chinese PoUtics and Society or any other level-two or examples of specialisations level-three Economics subjects 25.0 The following course examples may help students plan their Total 100.0 programs of study within the structure of the BCom. TIURD YEAR POLNTS They are examples only, and are not prescriptive. Economic Development 12.5 Optional subjects may include subjects from other faculties. International Economics 12.5 An asterisk (*) marks designated compulsory subjects. Intermediate Microeconomics 12.5 Japanese Economy 12.5 Economic History Chinese Economy 12.5 FntST YEAR POINTS Three subjects in Economics or Economic History, Austraha in the Global Economy 12.5 one of vvhich must be a level-three subject 37.5 The Asian Economies 12.5 Total 100.0 Introductory Macroeconomics* 12.5 Introductory Microeconomics* 12.5 Economics Quantitative Methods 1* 12.5 FIRST YEAR POLNTS And 37.5 points chosen from: Introductory Macroeconomics 12.5 Accounting IA, Accounting IB, History IC, History ID or Introductory Microeconomics* 12.5 History IE; Austrahan Pohtics or Pohtics and Society, Law One level-one Mathematical Sciences subject and Business; Law of Business Transactions; Introduction to (see note 1 below) 12.5 Business Law 37.5 Quantitative Methods 1 * or Business Statistics* 12.5 Total 100.0 Two level-one Economics and Commerce subjects 25.0 SECOND AND THIRD YEAR POLNTS Two level-one Commerce, Arts or Science subjects 25.0 Four or more of thefollowing: Total 100.0 The Consumer Age 12.5 SECOND YEAR POLNTS Business in American History 12.5 316-202 Intermediate Microeconomics* 12.5 Labour History 12.5 316-201 Intermediate Macroeconomics+ 12.5 Business Development in Southeast Asia 12.5 Quantitative Methods 2* or Introductory Econometrics* 25.0 Thejapanese Business System 12.5 One additional level-two or level-three subject in Management Strategies and Business Development 12.5 Econonucs 12.5 Economic Pohcy Debates: Past and Present 12.5 One level-two Commerce subject 12.5 The Great Economists' 12.5 Two level-two or level-three Commerce, Arts or Economic Problems in I Ustorical Perspective 12.5 Science subjects 25.0 Plus other subjects to make up 100 points in each year Total 100.0 (including compulsory second-year subjects). THIRD YEAR POLNTS Total 100.0 316-313 Microeconomics+ 12.5 In addition to tlx above 316-312 Macroeconomics-i- 12.5 Up to two of the foUowing can be included as part of a International Economics+ 12.5 speciaUsation in Economic History Basic Econometrics-i- or Econometrics+ 12.5 316-313 Microeconomics 12.5 Two level-three Economics subjects 25.0 316-312 Macroeconomics 12.5 Two additional level-three Commerce, Basic Econometrics or Econometrics Arts or science subjects 25.0 Japanese Economy Total 100.0 Chinese Economy 12.5 Pre-Revolutionary Russian History 12.5 + Compulsory subjects for smdents who intend to proceed to Soviet History From the Revolution to Gorbachev 12.5 honours in Economics and a career as a professional Asian Economic Studies economist 1: Smdents who have passed Change and Approxunation (1/2 FIRST YEAR POINTS level) and Extensions (Change and Approximation) (3/4 mtroductory Macroeconomics* 12.5 level) and Space and Number (1/2 or 3/4 level) and Introductory Microeconomics* 12.5 Reasoning and Data (1/2 or 3/4 level) are advised to enrol in Quantitative Meihods 1 or3l6-129 Business Statistics* 12.5 618-101 Mathematics IA. AustraUa in ihe Global Economy 12.5 The Asian Economies 12.5 Smdents who have passed Change and Approximation (1/2 Plus three other semester subjects, two of which must or 3/4) plus one of Reasoning and Data (1/2 or 3/4) or be at level-one 37.5 Space and Number (1/2 or 3/4) are advised to enrol in 617- Total 100.0 151 Mathematics for Economics. Students who are not confident of their ability in calculus or SECOND YEAR POINTS do not wish to continue with Mathematics should enrol in the Intermediate Macroeconomics 12.5 nvo compulsory Economics subjects, plus 316-130 Intermediate Microeconomics 12.5 Quantitative Methods and five other level-one subjects drawn Quantitative Methods 2* or Introductory Econometrics* 25.0 from Commerce, Arts or Science. The Japanese Business System 12.5 2. Students intending to proceed to honours in economics and Business and Development in Southeast Asia 12.5 to a career as a professional economist must take 316-301, Plus two of. 316-313, and either 316-316 or 316-317 in dieir third year. The Rise of Modern Japan State and Society in China 1644-1990

204 Faculty of Economics and Commerce Introduction

3. Students who pass 617-152,617-160 or 617-170 may count THIRD YEAR POINTS one of these subjects as partial fulfilment of the requirement Eight subjects wiiich may include to take nvo subjects in statistical method. Labour Economics 12.5 Industrial Relatioas 12.5 Econometrics Comparative Industrial Relations 12.5 Students who complete this program successfully at the required Industrial Relations Policy 12.5 standard may proceed to honours in Economics. Labour Law (see note below) 12.5 FIRST YEAR POINTS Law and labour Relations in East-Asia and Introductory Macroeconomics* 12.5 the Pacific Rim 12.5 Introductory Microeconomics* 12.5 Marketing 1 12.5 Mathematics 1 or Mathematics IA or Mathematics Marketing 2 12.5 for Economics 12.5 Total 100.0 Business Statistics* 12.5 Note: Studenis who intend to take Labour Law in their third year Madiematical Sciences for Economics or Scientific shoidd check the prerequisites carefully. Programming and Statistics 12.5 Phis three level-one semester subjects 50.0 Money, Banking and Finance Total 100.0 FIRST YEAR POINTS SECOND YEAR POINTS Introductory Macroeconomics* 12.5 316-202 Intermediate Microeconomics 12.5 Introductory Microeconomics* 12.5 316-201 Intermediate Macroeconomics+ 12.5 Quantitative Methods 1 or Business Statistics* 12.5 Introductory Econometrics* 12.5 Accounting IA 12.5 Mathematical Economics 12.5 Accounting IB 12.5 Plus four other level-two subjects 37.5 Three level-one semester subjects (including subjects Total 100.0 from Mathematical Sciences if desired) 37.5 Total 100.0 THIRD YEAR POINTS Econometrics+ 12.5 SECOND YEAR POINTS Econometric Modelling 12.5 Intermediate Financial Accounting 12.5 Time Series Analysis and Forecasting 12.5 Business Finance 12.5 316-313 Microeconomics+ 12.5 Intermediate Macroeconomics 12.5 316-312 Macroeconomics+ 12.5 intermediate Microeconomics* 12.5 Plus two of: Quantitative Methods 2* or Introductory Econometrics* 25.0 Economics of Financial Markets Two additional Economics and Commerce subjects 25.0 International Economics+ Total 100.0 Labour Economics THIRD YEAR POLNTS Money and Banking 25.0 Business Finance 2 12.5 One additional level-three subject 12.5 Money and Banking 12.5 Total 100.0 Economics of Financial Markets 12.5 + Compulsory subjects for students who intend to proceed to Economics and Management of Financial Institutions 12.5 honours in economics. International Finance 12.5 One additional Economics and Commerce subjects Management and Industrial Relations (see note below) 12.5 FIRST YEAR POINTS Personal Financial Management 12.5 Management Investments 12.5 Introductory Macroeconomics* 12.5 Total 100.0 Introductory Microeconomics* 12.5 Note: These subjects can include subjects in Accounting (such as Quantitative Methods 1 or Business Statistics* 12.5 FinancialAccounting), Economics (such as International Econom­ Plus four level-one Economics and Commerce subjects ics, Public Finance, Basic Econometrics, Econometrics and Time Arts or Science subjects 50.0 Series Analysis and Forecasting) and Economic IUstory. Students Total 100.0 shoidd pay careful attention to the level-one and level-two prereq­ SECOND YEAR POINTS uisites for these subjects. 316-202 Intermediate Microeconomics 12.5 Accounting and Finance 316-201 Intermediate Macroeconomics 12.5 Quantitative Methods 2* or Introductory Econometrics* 25.0 FIRST YEAR POINTS Five additional subjects which may include: Accounting IA 12.5 Organisational Behaviour 12.5 Accounting IB 12.5 Principles of Organisation 12.5 Either Law and Business and 12.5 Human Resource Management 12.5 Law of Business Transactions or 12.5 Other level-two Economics and Commerce or mtroduction to Business Law 12.5 Arts subjects 25.0 Introductory Macroeconomics* 12.5 Total 100.0 Introductory Microeconomics* 12.5 Quantitative Methods 1* or Business Statistics* 12.5 Additional level 1 subjects Total 100.0

205 Die Unmrsily of Melbourne Handbook 1994 Volume 3

SECOND YEAR PoiNTS 618-101 Madiematics 1A 12.5 mtermediate Managerial Accounting 12.5 618-102 Mathematics IB 12.5 Intermediate Financial Accounting 12.5 Total 100.0 Business Computing 12.5 SECOND YEAR Pocvrs Corporate Law 12.5 316-201 Intermediate Macroeconomics 12.5 Intermediate Microeconomics 12.5 619-210 Probability and Statistics 33.0 Quantitative Meihods 2 or Introductory Econometrics 12.5 300-201 Actuarial Statistics 12.5 One optional subject 12.5 300-202 Life Insurance Mathematics 12.5 Total 100.0 300-203 Mathematics in the Financial World 12.5 THIRD YEAR POINTS Two additional level-two or level-three Commerce Financial Accounting 12.5 subjects 25.0 Auditing 12.5 Total 10O.0 Managerial Accounting 12.5 THIRD YEAR POINTS Business Finance 1 12.5 300-301 The Actuarial Control Cycle 12.5 Taxation Law 12.5 300-302 Actuarial Statistics 12.5 Banking and Finance** 12.5 300-304 Risk Theory 12.5 Public Finance** 12.5 Five additional Commerce subjects, nvo of which must be Money and Banking** 12.5 level-three subjects 62.5 Total 100.0 Total 100.0 ** Optional subjecL'Many optional subjects are available; these.- _ - . -~ . are examples only. Note: For specific information about professional requirements,Studen t intormation refer to Membership of professional bodies. Students should be aware of their rights and obhgations while at the University. Essential information on matters such as enrolment, Business Law assessment, special consideration in the event of illness or other FIRST YEAR POINTS difficulties, etc., is contained in me Stiulent Diary, issued to every Law and Business 12.5 student on enrolmenL Law of Business Transactions 12.5 Introductory Macroeconomics* 12.5 Cancellation or changes to subjects Introductory Microeconomics* 12.5 In exceptional circumstances die Council may suspend a subject or Quantitative Methods 1 or Business Statistics* 12.5 change its contenL Any cancellation or change will be announced Three other semester subjects, including at least on departmental noticeboards before teaching begins. An optional two level-one subjects 37.5 subject may be suspended due to insufficient enrolmenLs. Total 100.0 Undergraduate students seekingtodiscontinucorchangeanyof the SECOND YEAR POINTS subjects for wiiich they arc enrolled must obtain a course change Law of Business Organisations 12.5 form from the Faculty Office. Corporate Law 12.5 Quantitative Methods 2 or Introductory Econometrics 12.5 Five other semester subjects 62.5 Leave of absence or course discontinuation Total 100.0 An undergraduate student seeking leave of absence must request THIRD YEAR POLNTS permission from the Assistant Registrar in writing, specifying the Up to eight semester subjecLs (100 points) including two orpropose d period of absence. Studenis who wish todiscontinue their more of the following: courses must notify the Assistant Registrar in writing. Business Regulation 12.5 Banking and Finance Law 12.5 Special tests Taxation Law 12.5 There are no supplementary examinations in units taught by this Taxation of Business Entities 12.5 Faculty, but the examiners may require candidates to present for Labour Law- 12.5 further written or oral tests to be held before the publication of Law and Labour Relations in East-Asia and the Pacific Riml2.5 results in December. Candidates are warned that oidy very short Law of Insolvency 12.5 notice of these tests can be given and it is important therfore that they Comparaiive Business Law — Malaysia 12.5 can be reached at the address held by the University. •Optional subject 12.5 Total 100.0 Actuarial Computers The Faculty has an excellent undergraduate computer laboratory Students taking the actuarial stream within the Commerce course are required to take the following subjects. There isaquotaon entry wilh 90 networked microcomputers running state-of-the-art com­ to the second year of the Actuarial program. mercial and statistical software. The computer laboratory is located on the first floor ofthe Baldwin FIRST YEAR Pocvrs Spencer Building. 300-101 Actuarial Studies 1 12.5 A separate computer laboratory caters for research smdents en­ 316-101 Introductory Macroeconomics or rolled in the honours program and postgraduate courses. 316-102 Introductory Microeconomics 12.5 The Department of Accounting and Finance's mtroductory Busi­ 306-103 Accounting 1A or ness Computing course includes practiad use of computer appli­ 306-104 Accounting IB 12.5 cation packages relevant to all Commerce smdents. 617-160 Scientific Prognimirung and Statistics 12.5

206 Faculty of Economics and Commerce Introduction

Other accounting courses also make use of computer apphcation Admission is open to graduates from any disciphne and apphcants packages, but Accounting Information Systems and the corre- should normally have relevantwor k experience. Candidates who srxmding fourth-year course deal with the more specialised aspects have not previously smdied industrial relations vvill usually enrol as of business computing. part-time stiidents in order to sequence their smdies appropriately. The Department of Economics uses computers extensively in its statistics, econometrics and advanced economics courses. Master of Taxation The estabhshment of the Master of Taxation course is a response to Postgraduate courses the demand of professional firms (lawyers and accountants), Graduates with a BCom pass degree or its equivalent may apply for corporations and governments for highly qiialified taxation special­ enrolment in a postgraduate diploma in Economics, Economic ists. Through the interdisciplinary namre of the course, smdents History, f inance, or a graduate diploma in Industrial Relations. will acquire an appreciation not only of the law and practice of It is expected that diploma studenLs will perform at honours level taxation, but also of its economic impact and pohcy significance. duiing their courses. Successful completion of a diploma course at Admission is open to candidates who have completed a Bachelor of the required standard qualifies candidates for admission to the Laws, Bachelor of Commerce with a substantial component of MCom degree course. accounting, or equivalent degrees. TheMTox is offered on a part-time basis only and will normally be completed in two y ears. TheMTax may be awarded either as a pass Postgraduate Diploma in Economics degree (requiring die completion of five subjects, the first of vvhich TheDipEcott advanced course of studynormallytakesoneyear full must be 308-601 Advanced Principles of Taxation, unless exemp­ time or two years part time, entailing two or four consecutive tion is granted) oras an honours degree (requiring diecompletion, semesters in economics and related disciplines. It provides intro­ with honours average, of four subjects, the first of which must be ductory training for students seeking to do a MCom degree 308-601 Advanced Principles of Taxation, unless exemption is by coursework or by diesis. granted, and a minor thesis of between 20 000 and 35 000words). Admission is open to graduates in economics and to others with approved tertiary qualifications. Those without an adequate eco­ nomics background will be required to imdertake preliminary Master of Commerce by coursework or thesis work The course assumes abihty to cope with work of honours TheMCom degree by coursework involves a one year full-time (two degree standard. years part-time) program specialising in Economics, Finance or Industrial Relations. The course consists of six coursework subjects plus production of Postgraduate Diploma in Economic History an article for publication or a research report, which counts as a An advanced course in Economic History and related disciplines, double subjecL weDipEconHist normally takes one year full time or two years part Candidates foranMCom degree by thesis pursue original research time (tivoorfourconsecutivesemesters). It provides introductory on an approved topic for al least one year full time, or two years part training for students seeking to do a Master of Commerce (MCom) time. degree by coursework or thesis. Each candidate has a supervisor appointed by die Faculty. Candi­ The course is open to graduates who have a major sequence or its dates present the results of their research in a thesis of about equivalent in economic history and to other persons with tertiary 50 000 words or (on the recommendation of their supervisor) a qualifications of sufficient standard. series of papers. Applicants without an adequate economic history background will TheMCom thesis degree shoidd be completed within two years for be reqiured to undertake preliminary work. The course assumes full-time candidates and four years for part-time candidates. abihty to cope widi work of honours degree standard. Admission to the MCom degree course (whether by thesis or coursework) is open to smdents with a first- or second-class Postgraduate Diploma in Finance BCom(Hons) degree or its equivalenL The DipFin advanced course normally takes one year full time or two years part time (two or four consecutive semesters) and Doctor of Philosophy provides a basic understanding of modem Finance and Financial Smdies ioxaPbD may be pursued in any department of the Faculty, Economics. It provides introductory training for students seeking including the Faculty's Instimte of Applied Economic and Social to do a,MCom degree by coursework or by thesis. Research (IAESR) or its Impact ProjecL Intending applicants Admission is open to graduates with an economics or finance should approach the relevant head of department for further details background or equivalenL Apphcants without the appropriate and seek advice from the University's Office for Research. Apphca­ background are required to undertake preliminary work. tions may be lodged at any time. Preliminary work normally invokes satisfactory completion of the undergraduate subjects Business Finance 1, Accounting ConcepLs, Microeconomics and Macroeconomics. An apphcant may be re­ Doctor of Commerce quired to complete other preliminary work. The DCom degree may be taken by a graduate of the Umversity of Melbourne, or any other tertiary educational institution, of not less than seven years standing after first qualifying for a degree. The Graduate Diploma in Industrial Relations candidate must satisfy the Faculty of adequate training and experi­ The DiplndRels course, normally one year full time or two years ence in a disciphne recognised by the Faculty. part time (two or four consecutive semesters), offers advanced smdies in industrial relations and related disciplines. It provides Candidates submit for examination published or unpublished introductory training for smdenLs seeking to do the MCom by original work wiiich in subject, scope and character is deemed coursework or by thesis. appropriate by the Faculty.

207 Vie University oj'Melbourne Handbook 1994 Volume 3

Membership of professional Institute of Actuaries of Australia: The Bachelor of Commerce course allows smdents with strong mathematical backgrounds to bodies undertake studies for the actuary profession in their degrees. Australian Society of Certified Practicing Accountants: Smdents who pass these courses at second-class honours standard Individuals who hold theBachelor of Commerce degree with a or better may be exempted from up to six of the 10 examinations . three-year sequence in Accounting and Finance may apply for for entry to the profession. For more information, contact the Associate membership of the Society. Institute of Actuaries of Austraha, 447 Collins Street, Melbourne Specific requirements of Associate membership are a core set of 3000. subjects and one of two 'Associate sequences'. Core subjects include the compulsory subjects from the Commerce degree plus Accounting IA and IB, Intermediate Financial For more information

Accounting, Intermediate Managerial Accounting, Business Com: Assistant Registrar, Faculty of Economics and Commerce, Univer­ puting, Financial Accounting, Managerial Accounting, Business sity, of Melbourne, Parkville, Victoria 3052. Tel: +613 (03) 344 Finance, Law and Business and Law of Business Transactions. 5317. • • Associate sequences are: The Faculty Office • Auditing, Corporate Law and Taxation Law. Tlie Faculty Office moved mto new premises on the second floor of • Corporate Finance, Investments, Banking and Finance Law, the Economics and Commerce Building in mid-1990 and in­ and one of Money and Banking, Economics of Financial creased the number of administrative staff in order to .improve Markets, Management of Financial Institutions, International service to students. The telephone number is (03) 344 5317. " ~ Finance and Personal Financial Management. " — Appointments can be arranged at the General Enquiry Office."' Persons who seek full CPA membership after graduation must The Adrmnistrative Officer (Undergraduate Smdies), the Adminis­ complete further external studies specified by die Society. For more trative Office (Overseas Students) and the Assistant Registrar are information, including details of admission reqmrements, contact available to provide advice to undergraduate students. the State Registrar of the CPA,Victorian Division, 170 Queen Street, Front office staff can provide general advice or direct students to the Melbourne 3000. appropriate source of information concerning changes to enrol­ Institute of Chartered Accountants in Australia: Those who ment, change of address, course advice, careers advice, special hold the Bachelor of Commerce degree (including Accounting IA consideration requests, enrolment records, overseas smdent mat­ and 1B, Intennediate Managerial Accounting, Intermediate Finan­ ters, and general personal counselling with referral to other cial Accounting, Business Computing, Financial Accounting, Mana­ University services such as Student Counselling, Language Centre, gerial Accounting, Business Finance 1, Auditing, Law and Business, and Study Skills. Law of Business Transactions, Corporate law and Taxation Law) The Facultv' Office can also provide detads of awards, prizes and may apply to participate in the Institute's Professional Year of Study. exhibitions available in the Faculty. Furtlier information on matters The Instimte requires Professional Year smdents odier than holders of general concern (such as fees, enrolment, assessment, special of honours degrees to complete a minimum of 52 weeks service consideration, student membership cards, colleges and halls of with a firm of chartered accountants in public practice before die residence, the Careers and Appointments Senice, financial assist­ commencement of the Professional Year. For further information ance and University facilities) is provided in me Sttident Diary.The on admission requirements, contact the State Director, ICAA, 490 Student Administration Office in the Raymond Priesdey Building is Bourke Street, Melbourne 3000.. the only office able to provide official result statements. Institute of Chartered Secretaries and Administrators: The Assistant Registrar, the Administrative Officer (Postgraduate Persons who have completed the Bachelor of Commerce degree, Smdies), the Associate Dean (Graduate Smdies), and relevant mcluding the Accounting and Business Law sequences, may apply heads of departments can provide course advice for postgraduate for exemption from eight of the 13 subjects of the Institute's smdents. examinations. Australian Institute of Bankers: Persons who have completed the degree of Bachelor of Commerce and are employed in the banking and finance mdustry are eligible for affiliate membership of the Institute. Smdent membership is also available. Interested smdents should consult the Instimte at State Bank Centre, 385 Bourke Street, Melbourne 3000.

208 Faculty of Economics and Commerce Accounting and Finance

Economics and Commerce • be able to describe the nature of accounting systems and, in particular, the use of special-purpose journals; subjects • be able to define Internal accounting control and describe its Subject codes consist of six digits. The first three digits indicate die relevance to merchandising operations; teaching department and the fourth digit indicates the year level. • be able to state the objective of financial reporting and The departmental codes are: describe and illustrate general-purpose financial statements; 306 Accounting and Finance • be able to describe and illustrate the accounting for short- 308 Business Law term liquid assets, inventories and habuities; 316 Economics • be able to describe and illustrate the accounting for long- 326 Economic History term assets, natural resources and intangible assets. 327 Management and Industrial Relations • be able to describe and iUustrate partnership accounting; 617/8 Mathematics and Mathematical Sciences • be able to describe the uses of, and Ulustrate the preparation procedures of, the statement of cash flows. Content Topics include: the nature and purpose of accounting Accounting and Finance and accounting reports; the role of accounting information in ORDINARY DEGREE decisions of external users (shareholders, bankers and the Uke); understanding basic accounting concepts and conventions; the FIRST YEAR process of capturing information in the accounting system, the use of journals, ledgers and control accounts; summarising and report­ 306-102 ACCOUNTING CONCEPTS ing of accounting information; basic accounting reports. Coordinaton Mr I Hilton. Assessment A 3-hour end-of-semester examination (90 per Prerequisite: None cent); a project of up to 20 hours' work (10 per cent). Contact Two 1-hour lectures and a 1-hour mtorial a week.Prescribe d texts: Wise T W et al Accounting in Australia (Secondsemester) Houghton Mifflin Melbourne 1990. Wise T W et al Accounting in Objectives: On completion of this subject a smdent should: Australia - Study Guide Houghton Mifflin Melbourne 1990, • understand accounting concepts and the terminology used in Course material for Accounting IA (Current year version). accounting; NOTE: Sttxlents who have passed V(IAccc*mtmgwimamarkof35 or • understand die doctrines and procedures used to classify more out of 40wiU be exempt from this subjea in first semester. Such and process accounting transactions; sttKieiitssrKxddsdeaarKxhersiibject offered by the Faadry. Arry student • be able to assess and make use of the financial information electing to take Accountingl A may not stibsequently avail themselves of published in accounting reports; the exemption in the event that they fail AccountinglA • understand the elements in the costing of jobs and processes; 306-104 ACCOUNTING 1B • appreciate and be able to use accounting techniques to assist Coordinaton Mrs C R WUson. managers in making both short and long-nin business decisions. Prerequisite: 306-103 Accounting IA or its equivalent Smdents Content Basic balance sheet and income statement concepts: exempted from Accounting 1A satisfy the prerequisite. assets; habuities; owners' equity, revenue; expenses. The measure­ Contact Two 1-hour lecmres, a 1-hour mtorial and a 1-hour ment of profit Significant balance sheet and income statement workshop a week. (Secondsemester) relationships. The nature of depreciation. Methods of calculating Objectives:On completion of this subject a smdent should: depreciation. Job costing and project accounting. Profit measure­ • understand the namre of company formation; ment in relation to projects. CostAolume/profit analysis as a short- • be able to account for various share issues; term decision tool. Discounted cash flow analysis as a tool for long- • understand the namre of profit distribution; run decisions; basic taxation • understand various group structures; Assessment A 2-hour end-of-semester examination (80%) and • be able to deal with problems of accounting for groups; one assignment (20%) • Satisfactory completion of diis subject • understand the special concerns of foreign operations; requires a 50% pass in the examination. • understand how share prices are determined; NOTE: Accounting Concepts is a single subject alternative to 306- 103 Accounting IA and 306-104 Accounting IB. It is a non- • be able to analyse and interpret financial information; specialised subject for students who do not wish to major in • understand the limitations of financial statement analysis; Accounting. A quota applies to non-Commerce students. Students • understand cost concepts and cost behaviour, may not gain credit for both Accounting Concepts 306-102 and • be famihar with budgets and responsibiUtyaccounting ; either 306-103 Accounting IA or 306-104 Accounting IB. • understand the concepts needed for accounting for manufacturing. 306-103 ACCOUNTING 1A Content The appUcation of basic accounting concepts and meth­ Coordinaton Mr T Wise. ods to the foUowing introductory topics: company accounting, Prerequisites: None analysis and interpretation of financial statements, cost concepts, Contact A l-hour mtorial and a 1-hourworkshop each week and cost behaviour and the use of cost data in manufacturing opera­ up to Uvo 1 -hour lecmres each week. (First semester) tions. Objectives: On completion of this subject a smdent should: Assessment A 3-hour end-of-semester examination (70 per • be able to define accounting and describe its role, as an cent); an assignment of up to 3000 words (10 per cent); a test of information system, in making infonned economic decisions; up to one hour (10 per cent); mtorial participation (10%). • be able to explain and use the double-entry accounting Satisfactory completion of this subject requires a 50% pass in the system to derive statements of financial perfonnance and end-of-semester examination. position; Prescribed texts: To be advised.

209 Die University ojMelbourne Handbook 1994 Volume 3

SECOND YEAR • be aw are of the accounting problems arising from engaging in foreign currency denominated business transactions and 306-201 INTERMEDIATE MANAGERIAL investments. ACCOUNTING Contentlntroduction to the preparation of annual financial state­ Coordinaton Mrs E S Roberts. ments, accounting standards and the regulation of corporate Prerequisites: 306-104 Accounting IB and 306-205 Business reporting. Computing (co-requisite). Assessment A 3-hour end-of-semester examination (90 per Contact: Two 1-hour lectures, a 1-hour workshop and a 1-hour cent); tutorial participation (10 per cent). Satisfactory completion tutorial a week. (Secondsemester) ofthis subject requires a 50 per cent pass in the examination. Objectives: On completion of this subject a smdent should: Prescribed texts: To be advised. • be able to understand the role of the managerial accounting system and its relation to the financial accounting system; 306-203 BUSINESS FINANCE • be able to understand the concepts of and the relationship Coordinaton Professor R Nicol. between planning, decision-making and control; Prerequisites: Students should have passed 306-102 Accounting • be able to understand the nature and behaviour of costs; Concepts or 306-104 Accounting IB; 316-101 Introductory • be able to identify and use costing techniques appropriate for Macroeconomics and 316-102 Introductory Microeconomics; different types of activities in a range of environments; 316-130 Quantitative Methods 1 or 316-129 Busmess Statistics; (and, from 1995, .316-202 Intermediate Microeconomics). • be able to develop and use budgets and standards for Contact Two 1 -hour lectures and a 1 -hour mtorial a vveek. (First planning and control; or second semester) • be able to understand the reasons for cost allocation and use the lechniques available; Objectives: On completion of this subject a smdent should: • be able to understand die difference between decision • develop a basic institutional knowledge of the Australian making in the short mn and the long mn and apply the finance sector and understuiding of financial information; relevant techniques; • understand, at an introductory level, the theory of pricing of • be able to use a spreadsheet package to assist in managerial risky assets; accounting tasks. • understand the fundamentals of capital budgeting; mcluding Content This subject introduces the accounting techniques and the use of alternative criteria, allowing for inflation, the processes available to assist managers in planning and controlling treatment of risk; organisation activities. Topics include: cost measurement, cost • be aware of the iastruments of corporate funding and have a accounting systems, budgeting, and accounting for inventory. The basic undersianding of the dieory of capital strucmre; emphasis is on developing technical expertise in die use of these • appreciate the fundamentals of die theory and practice of systems in both manufacturing and service organisations. The use dividend policy; of computers in applying these techniques forms an integral part of • develop an understuiding of die characteristics of, and basic the course. approach to pricing, derivative financial instiuments such as Assessment A 2-hour end-of-semester examination (60 per options and fumres; cent); an essay of up to 2000 words (10 per cent); a computer • be able to utilise computer spreadsheet techniques to solve based assignment (10 per cent); short answer tests during the financial problems; semester (20 per cent). Satisfactory completion of this subject • develop basic competence in financial mathematics. requires a 50 per cent pass in die examination. Content Basic institutional knowledge of the Australian finance Prescribed texts: To be advised. sector and an introduction to the theory of pricing of risky assets, focusing on die Capital Asset Pricing Model. Fundamentals of 306-202 INTERMEDIATE FINANCIAL ACCOUNTING capital budgeting, including methods of allowing for inflation, the Coordinaton Mrs V Wise. term stnicture of interest rates, and the treatment of risk. Instru­ Prerequisite: 306-104 Accounting IB. ments of corporate funding; the theory and practice of capital Contact Two lecmres, a 1-hour workshop and a 1-hour mtorial structure and dividend pohcy decisions. An introduction to com­ aweek. (Firstsemester) plex financial instruments such as options and fumres. Objectives: On completion ofthis subject a smdent should Assessment A 3-hour end-of-semester examination (80 per • be famihar with the procedures for incorporation and cent); a mid-semester test (20 per cent); weekly mtorial assign­ dissolution of a company, ments of up to 80 pages in total. • be famdiar with the impact of diversity and choice of Prescribed text Van Home J, Davis K, Nicol R and Wright K accounting method on external corporate financial state­ Financial Management and Policy in Australia Prentice Hall ments; Sydney 1990. • be familiar with the fixedforma t and general presentation requirements relevant to external corporate financial 306-205 BUSINESS COMPUTING statements; Coordinaton Mr S.G. Fraser. • understand the namre and imphcations of tax-effect Prerequisite: None. accounting; Contact Two 1 -hourlectures, a 1 -hourcomputing workshop, and • understand the rationale behind funding alternatives and the a 1 -hour mtorial per week.. (First semester.) accounting imphcations of each; Objectives: On completion of this subjecta student should • be able to understand and discuss the appropriate treatment • be able to outline the key characteristic of different computer of goodwill and discount arising on acquisition; systems that provide information for dedsion-making, from • be competent in the preparation of consohdated external transaction processing systems to decision support systems; financial statements; • be able to understand the situations in which the above different forms of computer system might be most useful;

210 Faculty of Economics and Commerce Accounting and Finance

• be able to understand tlie potential for using computers for • be able to list the advantages and disadvantages of computer business competitive advantage; file structures and databases; • be able to explain the normal process used for building • be able to fist the advantages and disadvantages of batch and effective computer-based infonnation systems; realtime processing; • be able to demonstrate understanding of the nature and role • be able to understand the components of an organization's of each of the following components of a computer system: internal control structure; (a) processor, • be able to know how to apply cost-benefit analysis to internal (b) main memory; control policies, practices, and procedures; (c) secondary storage; • be able to indicate which apphcation systems are hkely to be (d) operating system; found in the revenue, expenditure, conversion, and financial (e) network; cycles, respectively, and identify and explain the purpose of each of the following aspects of each of the four cycles fisted (0 file/database system. above: • be able to understand sufficient of DOS to be able to manage (a) documents, reports, and records file and sub-directories competendy, (b) processing • be able to use a spreadsheet package competendy, including being able to copy range of absolutely - and relatively- (c) control practices and procedures. addressed formulae (including @IF formulae) with relative • be able to use competently the database package dBase IV; ease; • be able to use competendy an accounts payable and general • be able to use a word processing package competently, ledger accounting transaction processmg package. mcluding being able to explain how embedded control codes Content The major transaction processing systems (TPS) used in specify the way a document is to appear on paper; accounting in business: the revenue cycle, the expenditure qcle, • know how to create and manipulate data in database tables. resource management, and the general ledger and reporting Content An introduction to business computing. Lecture topics system. Computer system design, organisational issues, and ac­ include: Basic elements of computer hardware and software: counting controls for such systems. Practical work usmg a modem central processor, primary and secondary storage, computer set of integrated accounting TPS software. networks, operating systems, file management, and application Assessment A 2-hour end-of-semester examination (55 per software. Typical applications of computers in business: transac­ cent) (a pass in the examination is required in order to obtain a pass tion processing systems, decision support/expert systems; case in the subject as a whole); case studies of up to 3000 words in total smdies. Practical computing focused on spreadsheets in an MS- (10 per cent); computer-based assignments of up to 30 hours' DOS environment, but also mcluding accounting ledger software work in total; constructive participation in mtorials (5%). and word processing software. Prescribed texts: Gelinas U J, Oram A E, and Wiggins W P, Assessment A1 -hour mid-semester e.xarnination (15%) andAccountinglnformationSystems a 2- (2nd edition), PWS Kent 1993), hour end-of-semester examination (60 %) (an overall passGrauer in the R and Barber M Database Management using dBase IV examinations is required to achieve a pass in die subject andSQLas a (McGraw Hill, 1992), Course MaterialsforAccounting whole); computer-based assignments of up to 30 hours' workInfonnation in Systems, currentyear. total (20%); constructive participation in tutorials (5%). THIRD YEAR Prescribed texts: Stern X and Stem R A Computing, with End- User Applications}^ Wiley and Sons 1990. Robers X SAustral-306-301 FINANCIAL ACCOUNTING ian Accounting Principles/Australian Financial Accounting:Coordinato A n Professor K A Houghton. Manual and Computer-based Practice Set Harper and RowPrerequisite : 306-202 Intermediate Financial Accounting (and, (Australasia 1990). Course Materials for Business Computing,from 1995,316-202 Intermediate Microeconomics). currentyear. Contact Two 1 -hour lecmres, a 1 -hour workshop and a 1 -hour 306-207 ACCOUNTING INFORMATION SYSTEMS mtorial a week. (Firstsemester) Coordinaton Mr S.G. Fraser. Objectives: On completion of this subject a smdent should: Prerequisites: 306-104 Accounting IB and 306-205 Busmess • understand the role of theory development in explaining Computing. accounting behaviour; Contact Two 1-hour lecmres and a 1-hour mtorial. {Second• appreciat e the principal existing theories that explain the semester) production and/or usage of accounting reports; Objectives: On completion of this subject a smdent should: • understand and think critically about the accounting regulatory process; • be able to explain, giving clear detailed examples, how transaction processing systems (and their underlying • understand the principles that underlie the recognition and databases) provide the detailed, accurate information measurement of core accounting concepts and think essential for day-to-day operations in almost all organisa­ critically about their shortcomings; tions; • comprehend the range of emerging issues in financial • be able to explain the activities associated with, and role of accounting. accountants in, each of the following phases in the software Content This subject aims to develop a critical understandmg of development life cycle: preliminary survey, feasibility smdy, the underpinning theories and assumptions behind financial ac­ preliminary system design, detailed system specification, counting and an analysis of contemporary financial accounting system testing, implementation, and operation; issues. Topics covered mclude the conceptual framework of ac­ • beabletoexplainthe advantages and hmitations of alterna­ counting; alternative theories for explaining accounting behaviour tive (non-SDLC) methods for creating accounting informa­ and accounting choice; the regulatory process as it affects financial tion systems; reporting; recognition and measurement issues and controversies and emerging issues in accounting.

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AssessmentA 3-hour final examination (80 per cent), an assign­ Prescribed texts: Horngren CT and Forster G Cost Accounting: ment not exceeding 2,000 words (10 per cent) and tutorial A Managerial Empfxisis 7th edition Prentice-Hall 1991 • Kaplan R assignments and participation (10 per cent). S and Atkinson A ^Advanced Managerial Accounting 2nd edition FTescribed text Hodgson A, Holmes S and Kam \ Accounting Prentice- Hall 1989- Selected Kearlings l^ulmeni of Accounting 77jror)'John Wiley and Sons Brisbane 1992 (ormorerecentedition and Finance 1993 if available). 306-304 AUDITING 306-302 MANAGERIAL ACCOUNTING Coordinator: Mrs C Jubb. Coordinator Dr M A Abemethy. Prerequisite: 306-301 Financial Accounting (and, from 1995, Prerequisite: 306-201 Intermediate Managerial Accounting (and, 316-202 Intermediate Microeconomics). from 1995,316-202 Intermediate Nlicroeconomics). Contact Two 1 -hour lectures and a 1 -hour tutorial aweek, plus up Contact Two 1 -hour lectures per week, up to 121 -hourseminars,t o twelve 1-hour workshops (Secondsemester.) anda 1-hour mtorial per week. (Firstsemester.). Objectives:On completion of this subject a student should: Objectives: The subject is divided into two parts. The first part of • understand the reasons for die existence of a demand for the subject is more technical in orientation and focuses on ad­ audits in our society, and the benefits derived from an audit; vanced, managerial accounting techniques and processes. On • understand the current environment in vvhich auditors completion of diis part of die subject a student should: operate, including ethical, legal and professional aspects; • have developed an understanding of the technological and • know the concepts and means used by auditors to gather environmental impact on the design and relevance of evidence and make judgements in order to form an audit "management accounting systems in todays manufacuiring- opinion, in bodi computer and non-computer environments; - environment, • understand how auditors communicate widi financial • have been provided with the necessary technical tools to statement users and odier interested parties; assist managers in achieving competitive advantage in this • be familiar widi contemporary research as it relates to changing environment; auditing • have developed skills in die analysis, interpretation and Content Tlie rationale for auditing; auditing standards; audit presentation of accounting information to assist managers in objectives, concepts and procedures; audit techniques including operationid, managerial and strategic decision making; statistical sampling and the audit of computer-based accounting • have developed an understanding of die accounting tooLs systems; audit reports; contemporary auditing problems with required for both routine and non-routine decision making special reference to die application of accounting and auditing and for planning and controlhng the activities performed in principles; the legal liability of auditors; the professional responsi­ manufacturing and non-manufacturing environments. bihties of auditors; die stamtory responsibilities and rights of The second part ofthis subject focuses on die behavioural implica­ auditors; auditing research literature. tions of managerial accounting. On completion of diis part of die Assessment A 1 -hour mid-semester examination (10 per cent), subject a smdent shoidd: one assignment not exceeding 1500 words (10 per cent), mtorial • have developed an understanding of die notion of control participation (10 per cent), a 3-hour end-of-semester examination and to enable them to assess the role of accounting in (70 per cent). Satisfactory completion of diis subject requi res a 50 achieving control within an organisation! This requires an per cent pass in the end-of-semester examination. identification of the alternative controls available to manage­ Prescribed texts: To be advised. ment within organisations; • have been provided with an awareness of die factors which 306-305 MANAGEMENT OF FINANCIAL influence the role of accounting vis a vis other control INSTITUTIONS mechanisms; Coordinator Professor KT Davis. • have developed an understanding of the accounting Prerequisites: 306-203 Business Finance must be taken prior to techniques used to measure managerial performance; or concurrently with this subjecL • have been enabled to evaluate the consequence on manage­ Contact Two 1-hour lecmres and a 1-hour tutorial a week, plus rial behaviour and organisational performance as a result of up to eight 1-hour seminars presented by practitioners. (First the implementation of accounting-based performance semester.) measurement and reward systems. Objectives: On completion of this subject a smdent should: ContentThis subject examines issues in advanced managerial • develop a thorough knowledge of Australia's financial system; accounting and focuses on the more complex issues relating to cost • understand how to assess financial institution performance; measurement, cost allocation, performance measurement, and • be aware of the sources of riski n financial instimtions and inventory control systems. It includes the recent trends in the methods for managing such risk; management of manufacturing and service organisations and the • be able to explain pricing decisions of financial institutions; impact of these trends on managerial accounting. A conceptual • be able'to critically assess theories of financial intermedia­ framework for evaluating the role of accounting for planning and tion; controlling activities within an organisation context is presented and both the technical and behavioural implications of manage­ • understand the aims and namre of regulation of financial ment accounting systems are discussed. institutioas and be able to assess its effects. Assessment A 2-hour end-of-semester exarrunation (60 per Content Types of financialinstimtion s and their roles in the cent), mid-semester test (50 minutes) (20 per cent), assignments Australian financial system. The management of such institutions, (20 per cent)". Students will not be allowed to sit the final examina­including: liquidity management, asset and liability management, tion unless' both assignments are completed and the test is at­ capital adequacy policies, credit evaluation and lending policies, tempted. Satisfactory completion of this subject requires a 50 per product development and pricing, and the provision and pricing of cent pass in the examination. ancillary services such as payments services. Methods of assessing

212 Faculty of Economics and Commerce Accounting and Finance

performance of financial institutions; factors affecting perform­ Prescribed Texts: Kroenke D Management Information Sys­ ance, such as economies of scale, competition and regulation. tems 2nd Edn Mitchell McGraw Hill 1992, Kroenke D Casebook to Assessment A 3-hour end-of-semester examination (70 per accompany Mamigement infonnation Systems, Luce T Using cent), a2000-word essay (30 per cent) and tutorial assignments of VP-Expert in Business Mitchell McGraw-Hill 1992, Course Notes up to 50 pages in total. for Management Information Systems 1994. Prescribed text Sinkey J FCommercialBank FinancialMan­ 306-309 CORPORATE FINANCE agement Macmillan Coordinaton Mr T. Brailsford, Ms C Martini. 306-306 SPECIAL TOPICS IN FINANCE Prerequisite: 306-203 Business Finance. Not available in 1994 Contact Two 1-hour lectures and a 1-hour mtorial a week. In Coordinaton Professor K T Davis. addition, stiidents may be required to attend up to eight 1-hour special guest lectures. {Firstsemester) Prerequisite: 306-203 Business Finance. Objectives: On completion of this subject a smdent should: Contact Three hours of seminar per week (or equivalent). • obtain a detailed imderstanding of the implications of Objectives: To be advised. AustraUan tax system for corporate finance; Content To be advised, but to cover contemporary developments • understand the theoretical framework underlying the in topics such as the pricing of capital assets, financing and dividend corporate dividend decision and the capital structure pohcy, derivative securities, taxation and capital asset pricing, decision; treasury management • be able to solve complex capital budgeting problems; AssessmentTo be advised. • comprehend alternative corporate funding mechanisms; Prescribed texts: To be advised. • be aware of current issues in AustraUan corporate finance. 306-307 MANAGEMENT INFORMATION SYSTEMS Content An extension of the analysis of capital budgeting, capital Coordinaton Dr P B. Seddon structure, and dividend policy to the treatment in Business Finance. Prerequisite: 306-205 Business Computing The effect ofthe dividend imputation system of taxation on dividend Contact: Two 1-hour lecmres and one 1-hour mtorial a week. pohcy, capital stnicture and capital budgeting. A comprehensive (Second Semester.) analysis of corporate acquisitions and restiucturing. A detailed Objectives: On completion of this subject a smdent should: examination of alternative funding mechanisms including leases and hybrid securities. A discussion of current issues of interest in • be able to describe the key characteristics of at least six AustraUan corporate finance. different classes of information systems ranging from Assessment A 1-hour mid-semester test (20%) and a 3-hour transaction processing systems through to expert systems; examination at the end of the semester (80%). • be able to explain how information systems can add value to their host organisations; Prescribed texts: To be advised. • be able to explain, giving examples, how information systems NOTE: This subject is available to third-year smdents only. The may be used for competitive advantage; course is aimed at smdents envisaging a career in corporate financial management or advising. • be able to understand how apphcants of information technology may change the structure of, and power balances 306-311 INTERNATIONAL FINANCE within, organisations; Coordinaton Mr R Singh. • be able to understand die impact of telecommunications on Prerequisite: 306-203 Business Finance. both inter- and intra-organisational processes; Contact A 90-minute lecture and a90-minute mtorial a week, plus • be able to explain how appUcations of IT can be viewed as up to eight 1-hour seminars presented by practitioners. (Second diffusion-of-innovation processes; semester) • be able to explain how infonnation can be viewed as a Objectives:On completion of this subject a smdent should: resource that has value, and how thta resource should be • know the concepts, methods of operation and terminology of managed; foreign excliange markets; • be able to identify the objectives of various techniques for • understand the crucial elements of international investment budding effective information systems; decision-making; • be able to write spreadsheet macros and menus competendy; • be aware of the sources and approaches to dealing with • be able to develop an expert svstem using an expert svstem foreign excliange exposure; shell. • have a knowledge of international funding mechanisms; Content Focusing on management appUcations of information • be able to analyse decision making in multinational business technology, diis subject assumes that stiidents are fanuiiar with organisations and others engaged in international business; basic computer technology, transaction processing systems, and • be aware of the major theories of exchange rate determina­ databases, and examines alternative w ays to use computer technol- tion. ogytoaddvaluetoafirm. To achieve dus purpose, the course uses textbook material, the research Uterature in Information Systems, Content Concepts, operation and terminology of foreign ex­ case smdies, and practical computing exercises. change markets: international investment decision-making; sources Assessment A 2-hour end-of-semester examination (50%) (a of and approaches to dealing with foreign exchange exposure. pass in the examination is required in order to obtain a pass in die International funding mechanisms and decision making in multi­ subject as a whole); case studies of up to 5,000 words in total national business organisations. (15%); computer-based assignments of up to 30 hours' work in Assessment A 3-hour end-of-semester examination (100 per total (30%); constructive participation in mtorials (5%). cent); weekly mtorial assignments of up to 80 pages in total. Prescribed text ShapkoAC,MultinationalFinancialManage- ment 4th ed Allyn and Bacon 1992.

213 The University of Melbourne Handbook 1994 Volume 3

306-312 PERSONAL FINANCIAL MANAGEMENT Prescribed texts: Haugen, R \Modern investment Tfxory 3rd Coordinaton Professor K Davis. Edn, Prentice Hall 1993- Prerequisite: 306-203 Business Finance. NOTE: This subject is available to third-year smdents only. Contact One 2-hour lecture and a 1 -hour tutorial a week. (First semester.) HONOURS SUBJECTS Objectives: On completion ofthis subject a smdent should: The following subjects are available only to those admitted to the • develop a conceptual framework for analysis of personal honours degree unless special approval is granted by the Head of financial decision making; die Department of Accounting and Finance. • be able to identify and analyse alternative investment options 306-401 FINANCIAL MANAGEMENT avadable to mdividuals; Coordinaton Professor K Davis. • understand the impact of government pohcy on personal Prerequisite: 306-309 Corporate Finance. financial strategy, Contact A 3-hour seminar each vveek. (Secondsemester) • know the alternative methods of financing personal business Objectives: On completion of this subject a smdent should: activities and their imphcations; • develop an understanding of contemporary theoretical • be able to prepare a personal financial plan. research in key areas of corporate financial management; • understand the impact of taxation upon personal financial • become famihar with empirical methods used to examine planning; hypotheses about capital strucmre, dividend pohcy, leasing, • be aware of issues involved in retirement planning. takeovers, capital budgeting etc; Content This subject is aimed at smdents envisaging a career as a • understand the implications of the theoretical hterature for financial adviser, as well as providing a basis for future personal practical financial management; financial decision making. The role of the human life-cycle upon • be aware of, and be able to interpret, current developments personal financial requirements; the role of financial advisers in in financial policies pursued by Australian companies; constructing an appropriate personal financial pohcy. Alternative • be able to apply tecliniques studied in the course to solve investment options and sources of finance (including analysis of practical financial management problems. risk and effective return), with particular attention to retirement Content A study of recent literature in a number of areas of planrung and the impact of taxes and government incentives. Real financial management Topics include: working capital manage­ estate investment alternatives and small business financing. ment, investment evaluation, mergers and acquisitions, capital Assessment A 1500-word mid-semester essay/project (25 per strucmre decisions, dividend policy. cent). A 3-hour end-of-semester examination (75 per cent). Assessment A 3000-word research paper (30 per cent) and a 3- Prescribed texts: To be advised. hour end-of-semester examination (70 per cent). 306-331 INVESTMENTS Prescribed texts: To be advised. Coordinaton Mr D Lee. 306-461 ADVANCED FINANCIAL ACCOUNTING Prerequisite: 306-203 Business Finance. Coordinaton DrJ M Godfrey. Contact A90-minute lecmre and a 90-minute tutorial aweek, plus Prerequisite: 306-301 Financial Accounting. up to eight 1 -hour seminars presented by practitioners. (SecondContact One 3-hour seminar per week. (First semester) semester.) Objectives: Smdents should be able to: Objectives: On completion of this subject a smdent should: understand contemporary research in the mainstream areas of • understand and be able to apply theories of the pricing of financial accounting research; risky assets such as the CAPM and APT; • apply alternative paradigms to explain financial accounting • develop a knowledge of the binomial and Black-Scholes behaviour, models of option pricing, and the use of options in portfolio • understand whether and how accounting practices influence management. decision-making on macro-economic and micro-economic • appreciate the determinants of fumres prices, and the role of levels; fumres markets; • appreciate die reasons underlying various changes in the • have a detailed understanding of the theory of bond pricing focus of financial accounting research; and fixed interest portfolio management- • understand how accounting and accounting regulation impact • be able to analyse techniques of asset allocation performance upon finn value due to the use of accounting numbers in measurement and hedging strategies; contracting and political processes; • be able to implement simple portfolio optimisation tech­ • understand key issues in contemporary auditing research. niques. Content An appraisal of the empirical literature in financial Content This subject is aimed at smdents envisaging a career in accounting and the auditing of financial accounting reports. Em­ portfoho management Extension of die analysis of pricing of risky phasis is placed on the role of accounting information in capital assets introduced in Business Finance 1 through examining the markets, contracting, regulation, and human judgement theories. CAPM in more detad and introducing the Arbitrage Pricing Theory. Assessment One take-home final examination (40%); one as­ Pricing of derivative assets - futures and options - and the role of signment of up to 20 pages according to a format to be advised these assets in portfolio management The fixed-interest market (40%); seminar participation (20%). • Techniques of asset allocation and performance measurement, the theory and practice of portfolio heading. Trading and market Prescribed texts: Selected readings (current year version) making practices. Advanced FinancialAccounting . Department of Accounting and Finance. Assessment A 1500-word mid-semester essay/project (25 per cent). A 3-hour end-of-semester examination (75 per cent). Tutorial assignments of up to 80 pages in total.

214 Faculty of Economics and Commerce Accounting and Finance

306-462 ADVANCED MANAGERIAL ACCOUNTING • have developed understanding of topical empirical issues in Coordinaton Professor P BrowneU. modern finance. Prerequisites: 306-302 Managerial Accounting. Content The principles and techniques of security pricing with Contact: A 3-hour seminar. {First semester) particular emphasis on the Latest research. Topics include the efficient market hypothesis, event smdies, an advanced examina­ Objectives:On completion of this subject a student should: tion ofthe issues of risk vs return, extensions to theCAPM (including • have developed a framework within vvhich to examine the APT), issues associated with volatility, initial pubUc offerings and role of accounting information for planrung and controlhng derivative securities. organisational activities; • have developed an understanding of the imphcations of the Assessment A 3-hour end-of-semester examination (60%); writ­ following factors on the effectiveness of management ten assignments and presentations (40%) accounting systems: Prescribed texts: To be advised. - individual level variables (e.g. participation in the budget 306-464 ADVANCED INFORMATION SYSTEMS process; Coordinaton Dr P B Seddon. - interpersonal variables (e.g. leadership style); Prerequisite: 306-207 Accounting Information Systems, or 306- - technology and task related considerations; 307 Management Infonnation Systems. - structural considerations; Contact A 3-hour class a week. (First semester) - impact of environmental factors; Objectives: On completion of diis subject a student should: - cross-national or cross cultural differences; be able to write competent, integrative summaries of the theories - strategic competitive priorities. and research findings in each of following topics relevant Uterature: • have developed the abihty to critically analyse the theoretical • research frameworks in information systems; frameworks adopted in the Uterature and die methods • research mediods in information systems; employed to assess the variables of interest; • diffusion of information systems (IS)/information technology • have developed the abihty to summarise and analyse (IT); research papers for presentation in cLtss seminars as well as • impacts of IS on decision-making: decision support systems; in written fonn for assessment purposes. • user-involvement in IS development, Content* Tliis subject is intended for students interested in the • alternative system development approaches; study of contemporary research in management planning and control. Research which has focused on die impact of contextual, • information system development methodologies; individual and culmral factors on the design and operation of • Organisational impacts of IS/IT; management control systems. Ihe objective of the subject is to • the user interface: color, graphics; improve stiidents' understanding of management control in an • economics and information systems; organisational context. • accounting transaction processing systems; Assessment: Seminar presentation (20 per cent); a written paper • strategic impact of IT. of up to 10 pages, typed double spaced (30 per cent) and a 90 Content A readings-based introduction to the Information Sys­ minute examination (50 per cent). tems (IS) hteramre for honours and diploma smdents. The IS Prescribed text Selected Readings Department of Accounting frameworks Uterature, die notion of'success' in IS (the dependent and Finance 1993. variable in many research smdies), the behavioural and individual 306-463 ADVANCED FINANCE differences Uterature, organisation theory literamre, the Uterature on budding effective IS, and the Uterature on the strategic imphca­ Coordinaton Mr R Singh. tions of Information Technology. Prerequisite: 306-331 Investments Assessment A 3-hour end-of-semester take-home examination Contact Three hours a week of lecmres and seminars. (First(80 %); class presentations and summaries of readings (10%); semester) class participation (10%). Objectives: On completion of this subject a student should: Prescribed texts: A full Ust of readings wiU be provided in the first • have critically reviewed the methodology and empirical class. For the first part of the course: Davis G B and Olson M evidence on tests of asset pricing models such as tlie Capital Management Information Systems, Conceptual Foundations, Asset Pricing Model and the Arbitrage Pricing Theory to Structure and Development, 2nd edition McGraw-IUU 1985. Earl provide an understanding ofthe way in which securities are MJManagement StrategiesForInfonnation Technology Prentice priced. Hall (U.K.) 1989. • have examined issues vvhich arise in empirical research in finance such as problems of non-stationarity and thin trading 306-465 ADVANCED TOPICS IN ACCOUNTING AND so that students understand the techniques used to overcome FINANCE such problems. Coordinaton Professor Peter BrowneU. • have detailed the issues involved in conducting event studies Prerequisites: Prerequisites in any year wiU depend on the in efficient markets research. content and topic under examination. Smdents must gain the • have critically reviewed selected papers on the efficient permission of die coordinator before enroUing in this subjecL market hypothesis focussing on both firm specific and Contact Three hours of seminar per vveek (or equivalent) (Se­ market wide infonnation to provide an understanding ofthe mester - To be Announced) way the market works. Objectives: On completion of this subject a smdent should: • have critically reviewed the Uterature on stock market • be familiar with the contemporary research work in the anomaUes including the impUcations of die evidence for particular field of expertise of the presenter, market efficiency and existing theories of asset pricing. • understand both the background and the direction of future research in the particular area examined.

215 The University ofMelbourne Handbook 1994 Volume 3

Content: Content will vary according to the expertise of the • efficient computation methods of factorial and polynomial particular lecturer, but will cover contemporary research develop­ expansions; ments in topics such as corporate finance, cost and management • interpolation and approximation; accounting, financial accounting/audit and information systems. • numerical search techniques such as bisection and Newton- Assessment The equivalent of 3000 words of assessment which Raphson; may take the form of an open book examination or some suitable • solutions of systems of equations by direct and indirect substitute. methods; 306-466 RESEARCH METHODS IN ACCOUNTING • Monte Carlo siniulation; AND FINANCE • lattice methods in option pricing; Coordinator Professor K A Houghton. • applications of these techniques to solve problems in finance Prerequisite:306-301 Financial Accotintingor306-302 Manage­ and investments. rial Accounting or 306-331 Investments. Aims: Students shoidd acquire famiUaritywith a rangeof numerical Contact A 3-hour seminar a week (Firstsemester.) techniques in finance and investments and financial modelling and •Objectives: On completion of this subjcet a student should: problem solving skills using both electronic spreadsheets and computer programmes. A familiarity widi text and journal Utera- • have a foundation for understanding the nature of scientific ture useful in solving numerical problems in finance and invest­ inquiry in accounting and finance. ments will also be acquired. • have an understanding of how research questions are Content Computer accuracy, stability and convergence; elec- created and devejoped into testable hypotheses. . tronic spreadsheets and elementary computer.programming; in­ • appreciate the range of alternative research methods and terpolation and approximation procedures; mediods of numerical how one might choose amongst diem. search, Monte Carlo methods; numerical integration techniques; • be familiar with these alternatives and observe examples and solution mediods for systems of equations. AppUcations include: analyses of the appUcation of these methods. Models of the term structure of interest rates, option pricing, • have developed an abdity to criticaUy analyse die research of valuation of bond options, imphed option volatility, the dymanics of others in the fields of accounting and finance. portfoUo insurance programmes, portfolio simulation, portfoUo Content Fundamental approaches to research; the range of optimisation, the composition of stock plus warrant packages of analytical and empirical research mediods and techniques used in known value, determination of internal rates of return, capital accountingand finance. Aforumforstiidchtstodiscuss and develop budgeting. their own research proposals. Assessment A 3-hour end of semester examination (70 per cent) Assessment A 3-hour end-of-semester examination (60 per and one computing project (30 per cent). cent); a mid-semester test (10 per cent); an assignment of up to 5000 words (30 per cent). Prescribed texts: Selected Readings (current year version) Actuarial Studies Research Methods in Accounting and Finance. Department of ORDINARY DEGREE Accounting and Finance. FIRST YEAR 306-467 ACCOUNTING AND FINANCE RESEARCH ESSAY 300-101 ACTUARIAL STUDIES 1 Contact (Doublesemester.) Coordinator: Professor David Knox Objectives: On completion of this subject a student should: . Prerequisite: 618-101 Mathemaucs IA • have been provided with an opportunity to apply their Contact: Two 1-hour lectures and a 1-hour tutorial each vveek research skills to a contemporary research issue. (Second semester). • have been given an important opportunity to manage a Objectives: complex project At die end of this subject, the student wiU: • have developed analytic, writing and presentation skills. • understand and be able to apply fundamentals of compound Content The topic must be approved by die Head of Department interest to problems; of Accounting and Finance. The length of die essay, which must be • understand and be able to apply the life table to demographic determined in part by the subject matter, shoidd not exceed 15 000 problems; words. • have some appreciation of the actuarial profession and its Assessment The research essay itself is examined. A draft is due current role; and for submission on the second Monday of October, the final version • have attained some knowledge in respect of the major on the second Monday of November. products, markets and institutions where actuaries work. Content Compound interest operations including housing loans, 306-468 NUMERICAL TECHNIQUES IN FINANCE AND personal loans, bonds and the use of a spreadsheet to solve these INVESTMENT problems; the Ufe table and its appUcation to Ufe insurance; finite Coordinator Mr D Q Lee. differences; an introduction to insurance products; the role of the Prerequisite: 306-331 Investments. actuary; the significance of die financialinstitution s where actuarial Contact Three hours of lectures and workshops per week. (Firstmanagemen t is used. Semester.) Assessment: A 3-hour end of semester examination (80%), a mid Objectives: On completion of this subject a student should gain an semester test (10%), and an assignment of up to 1500 words imderstanding and working knowledge of: (10%). Additional assignments wiU also form an integral compo­ • a high level programiiiing language and a spreadsheet nent of this subject package; Prescribed texts: Knox, Zima and Brown, Matijematics of • error propagation and the limits of machine arithmetic; Finance, McGraw lull

216 Faculty of Economics and Commerce Actuarial Studies

SECOND YEAR marriage, sickness, etc.; joint life and last survivor annuities; contmgentassurances;reversionaiyaimmties;valtiationofpension 300-201 ACTUARIAL PRINCIPLES benefits; assessment of unit-linked contracts; profit testing. Coordinaton Mr Des. Welsh Assessment A three-hour final examination (85%) and two 1- Prerequisites: 300-101 Actuarial Studies 1 hour examinations during the semester (15 per cent). Contact: Two one-and-a-half hour lectures and a one-hour Prescribed text HaHALife Contingencies, Heinemann. tutorial per week (Firstsemester) NOTE: This subject is specifically designed for non-actuarial sm­ Objectives: On completion of this subject the student will be able dents. There are no restrictions on entry to this subject, and all to: second or third year Commerce stiidents are welcome to enrol. • analyse simple problems of emerging cost using a single decrement model, which describes die evolution of a 300-203 MATHEMATICS IN THE FINANCIAL WORLD population; calculate the present value and acaimulated Coordinaton Professor David Knox. value of a stream of payments using a single rate of interest Prerequisites: 617-160 Scientific Programming and Statistics, and taking into account the probability of the payments being 617-101 Mathematics IA. made; Contact Two one-and-a-half-hour lecmres and a one-hour tuto­ • define and use annuity functions and assurance functions for rial. (Firstsemester.) a single decrement model, including both select and ultimate Objectives: On completion ofthe subject, smdents will be able to: functions; • calculate the present value and the accumulated value of a • evaluate the liabilities under a life insurance or annuity stream of equal or unequal payments using specified rates of contract, in terms of emerging costs and in terms of present interest; values, for the purpose of product pricing, reserving and the • show how interest rates or discount rates may be expressed calculation of surrender values; in terms of different time periods; • demonstrate how die emergence of profit on a life insurance • analyse compound mterest problems and solve an equation or annuity contract depends on the interaction between the of value for the implied rate of interest; pricing basis and reserving basis; • show how discounted cash flow techniques can be used in • describe and apply techniques for analysing a delay (or run­ project appraisal, with an allowance for taxation; off) triangle and projecting the ultimate position; and • show an understanding of simple stochastic mterest rate • explain the workings of a simple no claims discount (NCD) models; and system. • evaluate the liabdities under a capital redemption contract or Content The Ufe table; the apphcation of probability to contingen­ annuity certain, in terms of emerging costs and in terms of cies of human life; commutation functions; select tables; annuities present values, for the purposes of product pricing and for and assurances on single lives; office premiums; pohcy values; extra the purposes of reserving. risks; laws of mortality; construction of tables. Content Valuation of annuities certain; loans repayable by instal­ Assessment A 3-hour end-of-semester examination (85%) and ments of principal and interest; valuation of financial securities two 1 -hour examinations during the semester (15%). using Makeham's formula; the effect of income and capital gains Prescribed text NeiU hlife Contingencies Heinemann. taxes; discounted cash flow; the determination of yield; methods 300-202 LIFE INSURANCE MATHEMATICS used to assess alternative investments; reinvestment rate models. Coordinaton Dr David Dickson. Assessment A 3-hour final examination (85%)and two 1-hour examinations during the semester (15 per cent). Prerequisite: 300-201 Actuarial Principles Prescribed text McCutcheon J J and Scott V/An introduction to Contact Two one-and-a-half-hotir lecmres and a one-hour the Mathematics of Finance Heinemann. mtorial per week (Second semester.) Objectives: At the end of this subject, the student should be able 300-204 DEMOGRAPHY, INSURANCE AND to: SUPERANNUATION • calculate the present value and the accumulated value of a Coordinaton Mr Des Welch stream of payments using a single rate of interest, taking into Prerequisite: 300-101 Introductory Microeconomics account the probabdity of the payments being made Contact Two 1-hour lecmres and a 1-hour mtorial each week according to a single decrement or a multiple state or (First semester). multiple decrement model; Objectives: On completion of this subject, students should be able • analyse problems invoking an equation of value taking into to: account the probability of the payments being made • understand the operations of a Ufe table; according to different models; • project a population given changes in fertility or mortality • define and use Manchester Unity sickness functions as an rates; alternative method to a multiple state model for analysing • appreciate the issues to be considered in the pricing of a life problems involving sickness and discuss the advantages and insurance contract, and limitations of the mediod; • understand the consequences of an ageing population and • define and use straightforward functions mvolving more than the issues relating to the growth of AustraUan superannuation. one life; Content Techniques of measuring the growth and composition of • define and use simple commutation functions suitable for human populations through the life table; the social and economic valuing pension hind benefits and contributions; and consequences of changes in the population structure; basic Ufe • carry out straightforward profit test of a fife insurance insurance products and their pricing, with reference to the Ufe product tables used; the impact of AIDS; the consequences of an ageing Content Constniction of mortality, sickness, multiple-decrement population and, in particular, how the growth of superannuation is and similar tables from graduated data; contracts dependent upon related to it.

217 The University of Melbourne Handbook 1994 Volume 3

Assessment A 2-hour end-of-semester examination (80%),rates an ; the derivation and use of multiple decrement tables and assignment of up to 1500 words(10%), and a class test (10%).sicknes s rates; techniques of graduation; constniction of recent FTescribed Texts: Pollard, Yusuf and Pollard, Demographicstandar d Ufe tables. The course wdl also mclude some related Techniques demographic topics. Assessment A 3-hour end-of-semester examination (80%), a THIRD YEAR mid-semester test (10%), and one major assignment(10%). 300-301 THE ACTUARIAL CONTROL CYCLE Prescribed text Benjamin and Pollard, Exposed-to-Risk and Coordinaton Professor David Knox Graduation. Prerequisites: 300-202 Life Insurance Mathematics 300-304 RISK THEORY Contact Two 1-hour lectures and a 1-hour tutorial each weekCoordinato n Dr David Dickson. (Secondsemester). Prerequisites: 619-210 ProbabiUty and Statistics and 300-202 Objectives: On completion of this subject, students should be able Life Insurance Mathematics. to: ' Contact Two one-and-a-half hou r lecmres and a one hour mtorial • understand the relationships within the actuarial control (Firstsemester.) cycle; Obj ectives: On completion of this subject, smdents should be able • analyse and price the risks involved in any insurance context to: • calculate the appropriate reserves for life insurance, general • calculate probabiUties for, and moments of, loss distributions insurance and superannuation producis; both with and without simple reinsurance arrangements; understand the different solvency requirements for Ufe — • constiuct risk models appropriate to short term insurance insurance and general insurance companies and superan­ contracts and calculate the moment generating function and nuation funds; the moments for the risk models bodi with and without • comment on the suitability of certain assets for given simple reinsurance arrangements; UabUities; and • calculate and approximate the aggregate claims distribution • appreciate the issues that need to be considered in the for short term insurance contracts; distribution of profit • explain the concept of min for a risk model, calculate the Content Underwriting of insurance risks; analysis of risks, ex­ adjustment coefficient and derive Lundberg's inequality for a penses and reinsurance; pricing of profits and product testing; compound Poisson model. Describe the effect on the valuation of UabiUties, reserving, solvency, asset-liability matching; probabiUty of nun of changing parameter values and of distribution of surplus/profit. simple reinsurance arrangements; and Assessment A three hour end-of-semester examination paper • describe and apply the fundamental concepts of credibiUty (80%) and a 3,000 word essay (20%). theory. 300-302 ACTUARIAL STATISTICS Content Statistical distributions in insurance; inferences from Coordinaton Mr Des Welsh. insurance data; determination of risk premium; experience rating and credibility dieory, no-claim discount; risk theory; use of Prerequisite: 619-210 ProbabiUty and Statistics and 300-201 Actuarial Principles. simulation; delays and the estimation of outstanding claims. Assessment A 3-hour end-of-semester examination (85%) and Contact Two one-and-a-half-hour lectures and a one-hour two 1-hour examinations during die semester (15 per cent). tutorial per \\eek(First semester). Prescribed texts: 1D Ciirrie, Loss Distributions, D C M Dickson Objectives: At the end of this subject, smdents should be able to: and H R Waters, Risk Models, D C M Dickson & H R Waters, Ruin • describe how to coUect data in a form suitable for examining Theory, H R Waters, Credibility Theory past experience; • calculate the exposure to risk using census methods and exact exposure methods, and derive crude decrement rates Business Law for a single decrement model by age and duration; ORDINARY DEGREE • describe and apply the principle methods available for graduating experience rates, and the considerations to be FIRST YEAR taken mto account in selecting a method; . • discuss die variation of mortaUty with regard to social, 732-101 LAW AND BUSINESS economic or regional factors and the use of standardised Coordinators: Mr Victor New and Mr Richard Naughton. mortaUty ratios for describing such variations; Contact Two 1-hour lecmres anda l-hourmtorialaweek..(F/r?/ • describe the principle forms of heterogeneity within a semester.) population with regard to mortaUty and sickness and the Objectives: At the conclusion of the teaching program in Law and ways in which selection can occur; Business, the smdent should: • discuss the need for risk classification and the use of • have an understanding of the components of the Australian different factors to classify risks; and legal system, and the operation of the judicial system; • demonstrate how to use a multiple state or a multiple • have an understanding of the legal process and lawmaking, decrement model to describe the evolution of a population and in paticular of precedent and stautory mterpretation; ' 'subject to more than one decremental factor, both in • have an imdeistanding of different types of laws; discrete and continuous form and with or without independ­ • be aware of how the law affects and is affected by commer­ ence between the factors. cial activity, Content The analysis of mortaUty and other decremental statistics • understand the legal principles relating to formation of including continuous and census exposed-to-risk formulae; select contract and various lands of terms of contract;

218 Faculty of Economics and Commerce Business Law

have acquired skills in arialysing fact situations in analysing • be familiar with the basic principles of contract law, fact situations mvolving basic contractual consequences and • appreciate how the law affects and supports commercial considering the apphcation of appropriate principles of law organisations. to them. Content An introduction to the way in which the legal system and Content: An introduction to the law, in particular the law on which legal rules impact upon commercial transactions, mtroduction to commercial transactions are based and the way in which legal Business Law will focus mainly upon three law of contract which is materials, such as statutes and reported decisions, are used to give fundamental to all commercial activity. effect to commercial transactions. Topics vvill include: The process of lawmaking, formation of Assessment Either one or two assignments (to be announced at contract, terms of the contract, negotiability, misrepresentation the first class of the semester) to a total of at the most 2000 words(commo n law and stamtory), impaired contracts, discharge of (30 per cent total) and a take-home examination of up to 3000 contract, remedies, product liability, crime and business. words (70 per cent). (Note: A student who fails this examination Assessment A 3-hour examination at the end of the semester. with a mark of 4 5 orbetter may be permitted to undertake 308-121FTescribe d Texts: A reading list vvill be provided at the beginning Law of Business Transactions. Such a smdent may be conceded a of the semester. pass in law and Business upon some further assessment in Law and Business at the end of the second semester.) Note: Smdents who obtain credit for mtroduction to Busmess Law FTescribed texts: A reading list will be provided at the begirining will not be permitted to enrol in Law and Business or Law and Business Transactions. Equally, smdents who obtain credit for of the semester. either Law and Business or Law of Busmess Transactions will notbe 732-102 LAW OF BUSINESS TRANSACTIONS permitted to enrol in Introduction to Business Law. Coordinators: Professor D E Allan and Mrs M Barbayannis. Prerequisite: Normally a pass in 732-101 Law and Busmess.SECON D YEAR Smdents who have failed Law and Business but who wish to smdy Law of Business Transactions may be permitted to enrol. 732-201 LAW OF BUSINESS ORGANISATIONS Contact Two 1-hour lecmres and a 1-hour tutorial a week.Coordinato r Mr Z Singer. (Secondsemester.) Pre- or Corequisites: 732-103 introduction to Business Law as Objectives: At the end of this course smdents should: a prerequisite or 732-102 Law of Business Transactions.as a co- • understand die general stamtory provisions implying terms requisite. into contracts for the sale of goods and services, and the Contact Two 1-hour lecmres anda 1-hourtutorialaweek. (First main cases interpreting those provisions; or second semester. Note:: This subject will be offered in both • understand the legal principles relating to various forms of semesters in 1994only. In 1995, it unll be offered only in second impaired contract; semester.) • understand the general stamtory provisions controlling Objectives: Upon the completion of this subject students should misleading and deceptive conduct, and the main cases have developed: interpreting those provisions; • a sound basic undersianding of the law relating to agency, o understand the legal principles of assignment and negotiabd- partnership, trusts, business names, and close corporations. ity and their significance for commercial transactions; • a comparative knowledge of the namre and relative • understand the legal principles relating to discharge of advantages and disadvantages of the legal structures for contracts; busmess entities; • understand the legal principles relating to remedies for • an appreciation of: breach of contract; (a) die steps leading to the formation of the various legal • have acquired skills (at a more sophisticated level than relationships; would be expected at the end of 308-120 Law and Business) (b) the rightsan d duties of the parties among themselves; in analysing fact situations involving contractual or mis- (c) external relations (mcluding the principles of Agency); representational consequences and considering the (d) the termination of each relationship. apphcation of appropriate principles of law to diem. Content A comparative smdy of the various legal structures for Content This subject budds on 308-120 Law and Business, by business entities, including the sole proprietor, partnership, trust, examining rules of contract law and other areas of law relevant to and close corporation. In analysing the advantages and disadvan­ business transactions. tages of each structure, the course will compare and contrast the Assessment One assignment with a maximum word limit not to formation, internal management, external relations (including the exceed 2000 words (30 per cent) and a 2-hour end-of-semester principles of agency), and termination of each strucmre with the examination (70 per cent). others and with companies. Prescribed texts: A reading fistwil l be provided at the beginning Assessment A 2-hour end-of-semester examination. ofthe semester. Prescribed texts: A reading fist will be provided at the beginning of the semester. 732-103 INTRODUCTION TO BUSINESS LAW Coordinator To be advised. 732-202 CORPORATE LAW Contact Two 1-hour lecmres and one 1-hour tutorial a week.Coordinato r Assoc. Prof. P. von Nessen. (Firstsemester.) Prerequisites: 732-103 Introduction to Business Lawor 732-102 Objectives: At the end of this subject stiidents should: Law of Business Transactions. • have an understanding of the legal system, the court Contact Two 1-hour lecmres and a 1-hour mtorial a week. hierarchy and legal concepts; (Second semester. Note: This subject will be offered in first • be conversant with die notions of precedent, statutory semester from 1995) interpretation and different types of law;

219 The Umversity oj"Melbourne Handbook 1994 Volume 3

Objectives: Through work undertaken in this subject students • understand the legal principles governing the relationship should: between banker and customer, and the consequences of that • obtain a general overview of the Austrahan corporations law; relationship; • have a working knowledge of the main statutory provisions • understand the legal concepts of assignment and negotiabd- of, and main case law relevant to, that law; ity, • have acquired skills in analysing fact situations with • understand the structure of vie Bills of Exchange Act 1909 corporations law consequences and considering the and the Cheques and Payment Orders Act 1986, their main apphcation of that law to them. provisions and the main case law interpreting those Content A survey of the law governing die formation, regulation, provisions; and termination of companies formed under state and federal law. • have a knowledge of the different classes of securities, their Analyses of the internal controls on company management and creation, and the rights and obhgations they bear on lenders their effects upon outsiders, regulation of the raising of capital and and borrowers; the securities markets. • have acquired skills in analysing fact situations involving Assessment A 2-hour end-of-semester examination. financing, banking or security consequences, and consider­ FTescribed texts: A reading hst will be provided at the begirining ing the application of niles of law to them. of the semester. Content The legal concepts that underlie most financing transac­ tions; laws iegulating various forms and instniments of finance and THIRD YEAR various types of security. Topics will include the nature and role of ,732-301 BUSINESS REGULATION commercial and consumer finance; types and incidents of per­ Coordinator Mrs F Hanks. sonal, property and chattel securities; regulation of various forms - of commercial finance and securities; regulation of consumer Prerequisite: 732-102 law of Business Transactions and 732- credit, various aspects of bank finance (including nature and 202 Corporate Law or 316-202 Intermediate Microeconomics or incidents of the banker-customer relationship, and negotiable 326-228 Management Strategies and Business Development (pre­ instniments as financing tools.) or co-requisite). Assessment A 2 1/2-hour end-of-semester examination. Contact Two 90-minute seminars a week (Secondsemester.) Prescribed texts: A reading list will be provided at the beginning Objectives: At the end of this course stiidents should: of die semester. • understand the stnictu re of the Trade Practices Act and the interaction between the various restrictive trade practices 732-303 TAXATION LAW provisions; Coordinator Mr J Telfer. • be able to construe each restrictive trade practice section of Prerequisite: 732-202 Corporate Law. the Act Contact Two 1 -hour lecmres and a 1 -hour mtorial a week. (First • be able to identify in actual forms of business conduct semester. Note: This subject will be offered in second semester practices that are suspect or prohibited under the Act; from 1995.) • understand the roles of the Commission, the Tribunal and Objectives: Through work undertaken in this subject students the courts under the Act; should: • understand the pohcy objectives in legislating to control • obtain a general overview of die Austrahan income tax, restrictive trade practices and mergers to market dominance; including capital gains tax and fringe benefits tax systems; • have an appreciation of die problems inherent in regulating • have a working knowledge of die main stamtory provisions economic activities. of, and main case law relevant to, the systems; Content A study of the regulation of economic activity: the role of • have acquired skills in analysing fact situations with tax the law in promoting the existence of efficient, competitive and consequences and considering the appUcation of the tax informed markets; the problems inherent in regulation economic systems to them. activity by law; the roles of industry self-regulation and administra­ Content An exainination of Australian income tax, capital gains tax tive and judicial conirol. and fringe benefits tax law and practice. Assessment A1500-word essay (30 per cent) and a 2-hour end- Assessment A 2-and-a-half-hour end-of-semester examination. of-semester examination (70 per cent). Prescribed texts: A reading Ust vvill be provided at the begirining . Prescribed texts: A reading hst will be provided at the begirining of the semester. of the semester. NOTE: A quota applies to this subject 732-304 LABOUR LAW Coordinators: Mr R Mitchell and Mr R Naughton. 732-302 BANKING AND FINANCE LAW Prerequisites: 732-202 Corporate Law. Coordinator Mr V New'. Contact Two 1-hour lecmres anda 1-hour mtorial a week. (First Prerequisite: 732-202 Corporate Law. semester.) Contact Two 1-hour lectures and a I-hour tutorial a week. Objectives: At the end of this course students should: (Secondsemester.) • understand the legal background and structure of federal Objectives: At the end of this course students should: and Stale industrial relations systems; • have an appreciation of ways in which legal concepts and • have developed an understanding of the significance and rules influence the choice and use of various typical forms of content of the contract of employment and its relationship to non-equity financing; industrial awards and coUective agreements; • understand the structure of the Credit Act 1984, its main • be famiUar with stamtory developments in the employment provisions governing consumer finance transactions, and the law area (equal opportunity, occupational healdi and safety) main cases interpreting those provisions; which have an impact upon the contract of employment;

220 Faculty of Economics and Commerce Business Law

• understand the operation of the federal system of conciUation Content A comparative smdy of the commercial law of Malaysia and arbitration, the nature and significance of awards, the against the background of the country's social and legal history, its legal regulation of collective agreements, and the enforce­ three legal systems (common law, Islamic and Native) and prevail- ment mechanisms available to the federal Industrial inggovernmentpolicyon development. (Makysia'sdominantlegal Relations Commission; system which regulates com mercc is the common law system.) The • understand the legal basis of trade unionism, and the legal commercial laws of the country, both written and unwritten, are regulation of trade unions at common law and under the similar to those of Austraha and have been influenced by Austrahan statutory industrial relations systems; law reform reports and commercial law legislation. Important • have an appreciation of the role of law (both common law differences exist however in the general legal environment of and statute) in regulating industrial conflict; commercial law arising from government pohcy and Malaysia's • have acquired skills in analysing factual situations with pluralist legal system. labour law consequences and applying legal niles and Assessment A 3-hour end-of-course examination. principles to them. Prescribed texts: To be advised. Content: A smdy of the law in an industrial relations context the 732-307 LAW AND LABOUR RELATIONS IN EAST- constitutional basis of labour law, conciliation and arbitration, ASIA AND THE PACIFIC RIM trade unions, individual rights in labour law, industrial conflict, secondary boycotts, collective agreements. Coordinaton Mr R Mitchell. Assessment: A 3-hour end-of-semester examination. Prerequisite: 732-304 labour Law. Prescribed texts: A reading hst will be provided at the beginnmg Contact Tw o 90-minute seminars per week. (Second semester.) of the semester. Objectives: The principal specific objectives of the subject are as follows: 732-305 LAW OF INSOLVENCY • to enable the smdents to understand the origins of labour law Coordinators: Mr Z Singer. systems in the relevant countries, and in particular the Prerequisites: 732-202 Corporate Law. transferability of Western models to developing countries; Contact Two 1-hour lecmres and a 1-hour mtorial a week. • to give smdents a basic grasp of the relevant laws which {Secondsemester.) govern the employment relationship between employer and Objectives: Upon the completion of this subject smdents should employee; have developed: • to gjve smdents an understanding of the laws regulating trade • a sound understanding of the law relating to: bankruptcy, unions and the setdement of industrial disputes in the region; including arrangements with creditors outside bankruptcy, • to enable smdents to place the development of these laws in • a sound understanding of the law relating to company their economic and pohtical context, and to appreciate the insolvency link between legal and pohtical systems, and economic • a knowledge of the consequences of insolvency on individu­ development; als, partnerships and companies, and on those who manage • to enable smdents to appreciate the practice of industrial companies; relations in the various countries examined, and the • an appreciation of the way in which the property of bank­ relationship between the legal system and industrial relations rupts and insolvent companies is admLnistered, including the practice; rights of secured and unsecured creditors to such property, • to give smdents an appreciation of the dynamism of labour • a knowledge of the pohcy underlying the law of insolvency law and industrial relations systems; and its refonn. • to introduce smdents to ways of varying models of labour Content The law relating to bankruptcy, including arrangements law, or industrial relations, to bring about desired change for with creditors outside bankniptcy. The law relating to company economic or social reasons. insolvency and matters pertaining to insolvency. Content The subject will comprise the following topics: Assessment A 2 1/2-hour end-of-semester examination. • the origins of labour law in East-Asia and the pacific rim Prescribed texts: Books and statutes to be announced at the countries. An introduction to the evolution of labour law beginning of the semester. models in the relevant countries; • transferability of legal models. An examination of the ways m 732-306 COMPARATIVE BUSINESS LAW - which East-Asian countries have "borrowed" Anglo- MALAYSIA American, and Austrahan models of labour law; (Not offered in 1994.) • the adaptation of legal models in Asia An examination of the Coordinator Mr K Menon. ways in which laws and legal institutions are adapted to fit Prerequisites: 732-202 Corporate Law. cultural, economic and pohtical contexts; Contact Two 90-minute lecmres a week for one semester. (First• the regulation of the mdividual employer-employee relation­ semester.) ship. An outline of the law comparing approaches to the Objectives: Students completing this subject should: contract of employment and the regulation of labour • have a general understanding of the sources of business law standards in the region; in Malaysia and the legal system in which these laws operate; • the regulation of industrial relations system. An outline ofthe • know the extent to which the law of contract, company law law comparing approaches to the regulation of trade unions, and banking law are typical of similar laws in Austraha; and methods of industrial dispute settlement in the region; • the influence of government pohcy on the operation of • industrial relations in practice. A smdy of the practice, anda business laws; comparison of the formal rules, and actual practice. • the legal structure and operation of Islamic business Assessment A mid-semester essay (20%) and a two and a half institutioas within the secular legal system of Malaysia hour end-of-semester examination (80%).

221 '[be U>iiversit\ • ofMelbourne Handbook 1994 Volume 3

Prescribed texts: A reading ust will be provided at the beginning 316-101 INTRODUCTORY MACROECONOMICS of the semester. Coordinator Dr R Dixon. HONOURS DEGREE Prerequisite: 316-102 Introductory Microeconomics. Contact Two- 1-hour lectures and a 1-hour tutorial a week. 732-401 TAXATION OF BUSINESS ENTITIES (Secondsemester?) Coordinator Associate Professor P von Nessen. Objectives: On completion of this subject students should be able Prerequisites: 732-201 law of Business Organisations, 732-303 to: Taxation Law. • explain the relationship between macroeconomics and Contact Two 90-minute seminars a week. (Secondsemester.) microeconomics; Objectives: Upon completion of this subject, students should: • explain the circular flow and national income concepts and • understand the income tax treatment of partnerships, trusts, identities, stock-flow distinctions and the main functional and companies; relationships used in macroeconomics; • understand the fringe benefits tax treatment of partnerships, • explain the link between aggregate demand and employment trusts, and companies; determination; • understand the capital gains tax treatment of partnerships, • understand elementary models of inflation, balance of trusts, and companies; payments and longer-run growth; • understand the income tax treatment of international • read and critically evaluate popular hterature on macro- transactions invoking partnerships, trusts, and companies; economic poliq issues; • be able to apply and constme tlie relevant provisions of tax - - • describe recent behaviour of key economic data for . legislation dealing with partnerships, trusts, and companies. Austraha • appreciate the tax poliq- underlying the tax treatment of Content An introduction to macroeconomic iheory and poliq. business entities; Economic aggregates such as aggregate production and employ­ •' recognise the biases within the tax system in relation to ment, diegeneral level ofprices and inflation, theexchange rate, the taxation of business entities. volume of monq and the balance of payments. An iniroduction to Content An advanced study of the taxation systems applicable to inter-industry analysis. Analysis particularly directed to models of partnerships, trusts, and companies with particular emphasis on an open economy such as Australia and current economic prob­ the effects of these intervening structures on the taxation of fringe lems and poliq issues. benefits, capital gains and international transactions. Considera­ Assessment A 2-hour end-of-semester examination (80 per tion of these entities for tax avoidance purposes. cent) and two written assignments of up to 2000 words in total (20 Assessment Assigned end-of-semester research problems to a per cent). One assignment may take the form of a class test. maximum of 4000 words (100 per cent). Prescribed texts: Stiglitz J principles of Macroeconomics Prescribed texts: Materials to be announced. • (Norton) orMcTaggaitDetal.,/ItoTOecoww//av(Addison Wesley). NOTE: A quota applies to this subject. NOTE: A quota for non-Commerce stiidents apphes. 732-402 SPECIAL TOPICS IN BUSINESS LAW 316-102 INTRODUCTORY MICROECONOMICS Coordinator To be advised. Coordinator Mr A Kan. Contact An average of 3 1/2 hours a week. (Secondsemester) Contact Two 1-hourlecturesanda 1-hour tutorial a week, (f/rs/ Content Special topics may be offered from time to time which are semester.) tadored to the interests of permanent and/or visiting members of Objectives: On completion of this subject students should be able staff. to: • understand elementary theories of the behaviour of firms, Assessment A 5000:word research paper on an approved topic. Prescribed texts: Books and statutes to be announced at the productive efficienq and the cost of production in both the short and the long run; beginning of the semester. • be able to recognise the characteristics of various market structures, such as competition, monopoly and oligopoly, Economics and understand the meaning and significance of market concentration; ORDINARY DEGREE • be able to explain the determinants of price and output FIRST YEAR ECONOMICS under different market structures, and make predictions of introductory Microeconomics is taught in the first semester. It is a price and output produced by firms operating under compulsory subject in the BCom. degree. It may also be taken by different market structures; students fromothe r faculties. Introductory Macroeconomics is • appreciate the welfare imphcations of price and output taught in the second semester. Introductory Macroeconomics also outcomes under different market structures in both the short is compulsory for Commerce students. Non-Commerce students and the long run, ie. the resource allocation outcome under mtending to study second-year economics should take both Intro­ these market structures;. ductory Macroeconomics and Introductory Microeconomics. • have a knowledge of the Austrahan Trade Practices legisla­ Quotas apply for non-Commerce studenis in both of these subjects. tion as it relates to market behaviour of firms, and also of Students who take Introductory Macroeconomics and Introduc­ some other institutions which can affect resource allocation tory Microeconomics in the same year and fad Introductory in the economy. Microeconomics will be given a conceded pass in that subject if Content An introduction to microeconomic iheory and poliq. their score in that subject is 45% or more and the average of marks The economic behaviour of individual consumers and producers. obtained in the two first year economics subjects is at least 50%. Price deterrriination and allocation of resources between various

222 Faculty of Economics ami Commerce Economics

uses. Basic demand and supply analysis, consumer behaviour, tlie signed primarily for smdents who take a first semester madiematics characteristics of firms, costs of production and the output and course in their first year (particularly 618-151 Mathematics for price decisions of firms operating under different market condi­ Economics). However it is also open to students who passed tions. Current government microeconomic policies. Change and Approximation (Extensions) at VCE or who have Assessment- A 2-hour end-of-semester examination (80 per completed an equivalent course in calculus. Studenis who intend cent) and two written assignments of up to 2000 words in total (20 to speciahse in econometrics in the degree must take 316-129 and per cent). One assignment may take the fonn of a class test 316-205. Prescribed texts: Baumol WJ et al Economics: Principles and Stiidents Laking a sequence in Actuarial Smdies enrol in 619-210 Policy latest AusL edition 1 larcourt Brace Jovanvich or Terry C andProbabilit y and Statistics instead of nvo statistics subjects taught by Forde K Microeconomics: An Introduction for Australian Stu­ the Faculty of Economics and Commerce. This option is also open dents 2nd revised edition Prentice-Hall or McTaggart D et al., to other Commerce smdents. Combined Commerce/Science stu­ Economics (Addison Wesley) Introductory Microeconomics dents, in particular, may find this option attractive. Smdents are Group One Workbook 1994 Department of Economics or Intro­ reminded, however, to note thaefirst year prerequisites on 619-210 ductory Microeconomics Group Two Workbook 1994 Depart­ Probability and Statistics. ment of Economics. 316-129 BUSINESS STATISTICS NOTE: A quota for non-Commerce smdents applies. Coordinator Professor R. Williams. 316-121 REGIONAL AND URBAN ECONOMIC Contact- Two 1-hour lecmres and a 1-hour mtorial a week. DEVELOPMENT (Second semester.) Coordinator. Dr C Beed. Objectives: On completion of this subject students should be able Pre or Co-requisite: 306-102 Introductory Microeconomics. to: Contact Two 1-hour lectures or carrel sessions and a 1-hour • succincdy summarise the properties of data sets which mtorial class a week. (Secondsemester) typically arise in economics and finance, mcluding their Objectives: On completion of this subject smdents should be able movement over time; to: • know and understand the properties and uses of theoretical • identify broad groups of factors influencing economic statistical distributions which are employed in economics decision making in a manufacturing context (for example, and finance; the role of transport costs); • use sample infonnation to make statistical inferences about a • understand space-cost curves and space-revenue curves and population. other theoretical locational prmciples, such as agglomeration Content Data analysis; major probability distributions; point and economies; interval estimation; hypothesis testing; analysis of variance. AppU­ • identify die various components of processing costs and their cations to Accounting, Economics and Finance. influence on the location of economic activities; Assessment A 2-hour end-of-semester examination (80 per • analyse the von Thunen model of agricultural location; cent) and tutorial exercises of up to 80 pages in total (20 per cent). • test the validity of location - rent explanations of farming Prescribed text Berenson M L and Levine D M Basic Business patterns compared with environmental explanations; Statistics 5tli edition Prentice-Hall. • understand central place theory as a basis for the partial NOTE: Students may not gain credit for both 316-129 Business explanation of the spatial organisation of a region; Statistics and 316-130 Quantitative Methods 1. • explain urban spatial stnicture in terms of the bid - rent 316-130 QUANTITATIVE METHODS 1 model. Coordinator: Mr J Shannon. Content A brief introduction to regional and urban economics, Contact Three hours a week. (Secondsemester) consisting of: theories of the location of economic activity and Objectives: On completion of this subject smdents should: spatial diffusion processes; urban economics; central place theory, • understand a number of mathematical techniques and their urban hierarchies, urbanisation trends in Australia; the internal application to accounting, economics and finance; strucmre of the city and die impact of technological change on urban development; regiona] economics; theories of regional • be familiar with the basic tenets of probabiUty theory, economic growth and especially the relationship between growth • be able to summarise data sets with a smaU number of and the composition of economic activity. Topics illustrated by statistical parameters; Australian case studies. • be famihar with the normal distribution and be able to Assessment A 2-hour examination (80 per cent) and a 1000- conduct a hypothesis test using Z-tables. word assignment (20 per cent). Content Explanation and appUcation of mathematical and statis­ Prescribed text Lloyd P E and Dicken P Location in Space: A tical techniques which are used for decision making and analysis in Tfjeoretical Approach to Economic Geography Harper Row. business and ecommos.MathetnaticdMellx)ds. Functions; solu­ tions of equations; a brief mtroduction to hnear programnuhg; STATISTICAL METHOD progressions and financial mathematics; simple derivatives and Smdents must take nvo subjects in statistics as part of the Commerce integrals; matrix notation and elementary matrix operations. Appli­ degree. Smdents with a hmited background in mathematics shoidd cations to cost, profit and volume analysis, capital budgeting, take the pair of subjects 316-130 Quantitative Methods 1 and 316- market equiUbrium, macroeconomics. Probability and Statis­ 206 Quantitative Methods 2. The alternative pair of subjects is 316- tics. Measures of location and dispersion; probability, random 129 Busmess Statistics and 316-205 Introductory Econometrics. variables, expected values, decision theory and estimation (mean These subjects cover a similar svllabus to those of Quantitative and proportions), hypothesis testing using the normal distribution. Methods 1 and 2 but the treatment is more mathematical. The AppUcations to finance, economics, auditing and managerial ac­ Business Statistics/Introduductory Econometrics sequence is de­ counting.

223 The University of Melbourne Handbook 1994 Volume 3

Assessment A 2-hour end-of-semester examination (80 per Content Regression, time series, die computer simulation of cent) and tutorial exercises of up to 50 pages in total (20 per cent). economic models, index numbers, studies ofthe sources, nature Prescribed texts: I lambury M Statistical Analysisfor Decision and applications of Australian statistics. Hypothesis testing using Making latest edn.. Harcourt Brace Jovanivich and Using Math­ die t- and chi-squared distributions. Analysis of variance. ematics in Economics Longman. SmdenLs who do not have a Assessment' A 2-hour end-of-semester examination (90 per strong mathematics background should purchase O'Brien et al., cent) and tutorial exercises of up to 60 pages in total (10 per cent). Mathematics for Business and Economics Harcourt Brace Prescribed texts: 1 lamburg M Statistical Analysisfor Decision Jovanovitch. Making latest edition Harcourt Brace Jovanovich or Levin R I NOTE: Credit cannot be obtained both for this subject and for 316- Statisticsfor Management latest edition Prentice-I laU, or Lewis D 129 Business Statistics or 617-152 Mathematical Sciences for et al Statistics for Business and Economics Harcourt Brace Economics or 617-160 Scientific Programming and Statistics or Jovanovich. 617-170 Discrete Mathematics and Statistics. However, students who pass 617-152 or 617-160 or 617-170 plus another first year 619-210 PROBABILITY AND STATISTICS mathematics subject may substitute these subects for 316-130 Credit points: 33.0 (double subject). Quantitative Methods. Coordinaton Dr R K WaLson. Special requirements: An electronic calculator of an approved 316-205 INTRODUCTORY ECONOMETRICS .tvpe- Coordinaton To be advised. Prerequisites: Madiematics6l8-101 and Madiematical Sciences Prerequisite: 316-129 Business Statistics. Stiidents may not gain 617-152 or 617-160 or 617-170 or Statistics 619-100. Mathemat­ credit for both 316-205 Introductory Econometiics and 3l6-206_ ics 618-102 is recommended. Quantitative Methods 2. Contact Th rec lecmres andthreehours of tu torial/practice classes Contact Two 1-hour lectures and a 1 -hour tutorial aweek. aweek.(First (Doublesemester.) semester) Content Probability: Elementary probability concepts, probabil­ Objecdves: On completion of diis subject students shoidd be able ity models, including Bernoulli trials, Poisson processes and to: random sampling, sequences of independent trials; regenerative • apply the classical model of ordinary least squares to data phenomena, introduction to Markov chains and simple Markov sets drawn from economics, finance and accounting using. processes, simulation methods, random variables and descriptions single and multiple regression equations; of dieir probabiUty distributions, conditional distributioas, stand­ • test hypotheses about die relationship behveen variables; ard probability distributions including hypergeometric, binomial, • understand the consequences of any of the classical Poisson, Poisson, negative binomial, normal, gamma and beta assumptions being violated; distributions and some of dieir appUcations, generating functions • be able to analyse economic and financial data sets using an and applications including the central limit theorem. Statistical econometric software package; inference: Estimation of parameters of probabdity distributioas, desirable properties of estimators: consistency, unbiasedness and • understand the constniction and use of index numbers. efficiency, maximum likelihood estimation, confidence intervals Content Regression analysis including die classical hnear regres­ for parameters, testing of hypotheses concerning parameters; sion model. Time series. Vectors and Matrices. AppUcations to critical region, size and power of tesLs, Ukelihood ratio tesLs, Unear Economics and Finance. regression and die mediod of least squares, correlation, the dieory Assessment A 2-hour end-of-semester examination (80 perand appUcations of die general linear model - with particular cent) and tutorial exercises of up to 50 pages in total (20 perreferenc cent). e to regression problems including multiple and polyno­ Prescribed text Gujarati D N Basic Econometrics. mial regression, the analysis of one-way and two-way classifications and die analysis of standard statistical experiments, basic principles 316-206 QUANTITATIVE METHODS 2 of experimental design. Coordinaton To be advised. Assessment Up to six 6 hours in total ofwritten exainination at the Prerequisite: 316-130 Quantitative Methods 1. Smdents maynot end of the first and second semesters; up to 100 pages of assign­ gain credit for both 316-206 Quantitative Methods 2 and 316-205 ments. Introductory Econometrics. NOTE: SmdenLs undertaking actuarial smdies must enrol in diis Contact Two 1-hour lectures anda 1-hour tutorial a week. (First subject instead of the two compulsory Economics and Commerce semester.) statistical methods subjects. StudenLs may not gain credit for both Objectives: On completion of dus subject smdents should be: 619-210 and 619-220 or 619-250. • famihar with the '-distribution and able to test hypotheses drawn from auditing, economics and finance using this SECOND YEAR ECONOMICS distribution; Smdents are advised to note the prercqiusites for durd year subjects • able to apply chi-square tests of goodness-of-fit and before making a decision on dieir second year subjects. independence; 316-201 INTERMEDIATE MACROECONOMICS • able to describe and test hypotheses about the relationship Coordinaton Professor 1 McDonald. between two variables using simple regression analysis; Prerequisites:. Introductory Macroeconomics and Introductory • able to interpret multiple regression results mvolving Microeconomics. economic and business data sets; Contact Two 1-hour lectures and a 1 -hour mtorial a week. • understand the use of index numbers in economics and (Secondsemester.) finance; Objectives: On completion of this subject studenis shoidd: • understand the classical model of time series; • understand the derivation of IS-LM curves; • be able to constnict seasonal indices and de-seasonaUse data.

224 Faculty ofEconomics and Commerce Economics

• understand models of the labour market and possible not available to students who have previously passed 316-313 reladonships between unemployment and inflation; Microeconomics. • understand models of the balance of payments and the Objectives: On completion of this subject smdents should: determination of international capital movements; • understand how economic questions can be formulated • be able to critically evaluate macroeconomic pohcy using mathematics; proposals. • be able to write down and manipulate mathematical models Content Intermediate level macroeconomics. Topics include the of the consumer and producer, dieory of aggregate demand, the concept of full employment, the • be able to use differential and difference equations to determination of the level of unemployment, inflation, the balance examine the dynamic properties of microeconomic and of trade and international capital movements. macroeconomic models; Assessment A 2-hour end-of-semester examination and a mid- • have some appreciation of the concept of duality in econom­ semester multiple choice test The final mark vvill be calculated by ics. weighting the end-of-semester exam at 80 per cent and the mid- Content The subject will cover (in mathematical terms) many of semester test at 20 per cent OR by weighting the end-of-semester the areas treated more intuitively in mtroductory courses in exam at 100 per cent, whichever gives the higher mark. macroeconomics and microeconomics - eg. macroeconomic FTescribed texts: Macroeconomics Workbook McDonald, I., dynamics, consumer demand, the theory of the firm, and imperfect OacarandaWilley) competition. NOTE: 316-201 Intermediate Macroeconomics and 316-202 In­ Assessment A 2-hour end-of-semester examination (80 per termediate Microeconomics together form the second-year com­ cent) and mtorial exercises of up to 30 pages in total (20 per cent). ponent of a specialisation in economics. Prescribed texts: \{mteV> Introductory Matl>ematicalAnalysis 316-202 INTERMEDIATE MICROECONOMICS D C Heath and Co. or Chiang A fundamental Methods ofMath­ ematical Economics McGraw Hill. Coordinator DrS King. Prerequisite: 316-102 Introductory Microeconomics. THIRD YEAR ECONOMICS Contact Two 1-hour lecmres and a 1-hourtutorialaweek. (first semester.) 316-301 INTERNATIONAL ECONOMICS Coordinator Dr G Woodbridge. NOTE: 316-202 Intermediate Microeconomics and 316-201 mter­ mediate Macroeconomics together form the second-year compo­ Prerequisites: 316-201 Intermediate Macroeconomics and316- nent of a specialisation in Economics. 202 Intermediate Microeconomics. Objectives: On completion ofthis subject students should: Contact An average of three hours a week of serrunars/lectures/ mtorials. (Secondsemester) • understand the scope and limitations of consumer and producer theory, Objectives: On completion ofthis subject smdents should be able to: • be able to solve economic models which involve opt­ imisation; • extend their knowledge of international economics via the independent smdy of books and articles dealing with theory • appreciate the role of value judgements in economics; and pohcy in this area and by taking advanced subjects • understand die conditions reqiured for Pareto efficiency in dealing widi these matters; exchange, production and in the composition of output; • j jdge the usefulness and the limitations of existing theory in • be able to critically evaluate arguments for government the area of international economics; intervention; • criti(-ally evaluate contemporary pohcy debates in the areas • understand the interdependence of economic subjects within of international trade, exchange rates and the balance of a general equihbrium framework; payments with reference to economic principles as appUed • understand die basic characteristics of public choice to international economics. mechanisms. Content The theory of international economics mcluding the Content Intermediate-level microeconomics. Development ofthe theory of comparative costs, tariffs, capital movements, balance-of- microeconomic theory of the behaviour of economic agents. payment adjustments, and exchange rates. The theory is related to Understanding how die behaviour of econoinic agents influences currentt issues in international economics mcluding aid poUcies, the efficiency of the economy. The problems of market failure such macroeconomic poUcy in an open economy, and current problems as externalities and public goods. of the world economy. Each smdent is required to present a Assessment A 2-hour end-of-semester examination and a mid- discussion paper. semester multiple choice test The final mark will be calculated by Assessment A 2-hour examination. weighting the end-of-semester exam at 80 per cent and the mid- Prescribed text I lusted S and Melvin M, /H temationalEconom­ semester test at 20 per cent OR by weighting the end-of-semester ics second edition, Harper Collins exam at 100 per cent, whichever gives the higher mark. NOTE: This subject is one of the four subjects which smdents Prescribed texts: Varian H mtermediate Microeconomics 3rd proceedingto an honours degree in economics are required to take Edn.,Norton. in either the third or fourth year of their course, and has been 316-207 MATHEMATICAL ECONOMICS designed accordingly. There are, however, no restrictions on entry Coordinator. DrJ. Lye. to this subject, and aU third-year economics smdents are welcome to enrol. Contact Three hours a week of serninars/lecmres/mtorials. (Sec­ ondsemester.) Pre- or Co-requisites: 618-100 Mathematics 1 or 618-101 Mathematics lAor6l8-l?l Mathematics for Economics. Preorco requisite: 316-202 Intermediate Microeconomics. This subject is

225 the Umversity of Melbourne Handbook 1994 Volume 3

316-302 ECONOMIC DEVELOPMENT 316-304 SOCIAL ECONOMICS Coordinaton Mr J. Robinson. Coordinaton ProfessorJ Creedy. Prerequisites: 316-201 IntermediateMacroeconornicsand3l6- Pre- or Co-requisites: Prerequisites: 316-101 Introductory 202 Intermediate Microeconomics. Macroeconomics and 316-102 Introductory Microeconomics. Pre Contact Three hours of lectures and seminars a week. {Firstor Co requisites: 316-201 mtermediate Macroeconomics and 316- semester). 202 mtermediate Microeconomics. Objectives: On completion ofthis subject students should be able Contact Two 1-hburlecmres anda 1-hourtutorialaweek for one to: semester. (Second semester.) • • extend their knowledge of economic development via the Objectives: On completion of this subject smdents shoidd be able independent study of books and articles dealing with theory to: and policy in this area and by taking advanced subjects • understand issues surrounding the measurement of dealing with these matters; economic inequality; • judge the usefulness arid the limitations of existing dieory in " • understand the concept and measurement of poverty, the area of economic development; • judge the usefulness and the limitations of existing dieory in • critically evaluate contemporary policy debates in the area of the area of social economics; economic development widi reference to economic • critically evaluate contemporary pohcy debates with principles as applied to economic development reference to economic principles as apphed to social Content The main theories of economic development for both economics; developed and developing countries, widi special attention to: the. .• understand the role of transfer payments in an economy. roles of population growth, capital formation, technical progress, • understand principles of social insurance in relation to and foreign trade in economic development; historical patterns of sickness, unemployment and pensions development, the functions of government; mestralegyfordevelop- Content The distribution of access to goods and services by ment in underdeveloped countries with particular reference to members ofthe community. The problems invoked in defining and agriculture and land reform, industriahsation, development fi­ nance, and population control. The costs of growth and whether measuring die personal distribution of income and wealth and the growth is desirable. degree of inequality. The redistributive effects of the taxation and social security systems and of the government provision of goods Assessment A 2-hour examination (60 percent) and an essay of and services. Special reference to current policy issues. approximately 3000 words (40 per cent). Assessment A 2-hour examination (75 per cent) and an essay of Prescribed texts: To be advised. approximately 2500 words (25 per cent). . 316-303 INDUSTRIAL ECONOMICS Prescribed text To be advised. Coordinaton Mr A Gunther. 316-305 PUBLIC FINANCE Prerequisite: 316-202 Intermediate Microeconomics. Coordinaton Dr N Norman. Contact Two 1-hour lectures and a 1-hour mtorial a vveek. Prerequisites: 316-201 Intermediate Macroeconomics and 316- (Secondsemester) 202 Intermediate Microeconomics. Objectives: On completion ofthis subject students should be able Contact Two 1 -hour lecmres and a 1-hour mtorial a week. (First to: semester) • extend their knowledge of industrial economics via the Objectives: On completion ofthis subject smdents should be able independent smdy of books and articles dealing with theory to: and policy in this area and by taking advanced subjects • extend dieir knowledge of public finance via the independent dealing with these matters; study of books and articles dealing widi theory and policy in • judge the usefulness and die limitations of existing theory in this area and by taking advanced subjects dealing with these the area of industrial economics; matters; • critically ev'altiatecontemrxiraryixihcy'debates vvith •.. judge the usefulness and die limitations of existing theory in reference to economic principles as apphed to industrial . the area of pubhc finance; economics. • critically evaluate contemporary pohcy debates in the pubhc Content The economic behaviour of industries, markets and finance with reference to pubhc finance theory. firms, including: output and pricing decisions, advertising, and the Content Pubhc finance and government policy, pubhc finance in growth of firms. Development of econonuc theories and their use relation to income distribution, stability, resource allocation and (with relevant evidence) to explain the behaviour, and to predict the growth; government revenue and the theory of taxation; taxation consequences of behaviourof firms for the welfare of society. The reform; die national debt, government expenditure; problems of question of whether the government should 'intervene' in industry, federal finance. with a critical smdy of cu rrent government pohcy towards industry. Assessment A 2-hour examination (75 per cent) and class Restrictive practices, research and development, tariffs, prices and assignments totalhng approximately 2500 words (25 per cent). foreign investment policies. A detailed smdy of at least one major Prescribed texts: Groenewegen ? Public Finance in Australia industry. The course is related to Austraha but international com­ 3rd edition 1989 Prentice-Hall. Musgrave R A & Musgrave P B parisons are made where appropriate. Public Firmnce in TlxoryandPractice 5th edition 1989 McGraw- Assessment A 2-hourexamination (75 per cent) and an essay of Hill. StiglitzJ E Economics of tlx Public Sector2nd edition 1988 approximately 2000 words (25 per cent). Norton. Prescribed texts: Scherer, F.M. and Ross, David, Industrial MarketStnwtureandEconotnicPerforrnance, Houghton Mifflin, Boston, 3rd. Edn., 1990 and Industrial Economics Workbook Department of Econonucs.

226 Faculty of Economics and Commerce Economics

316-306 MONEY AND BANKING • analyse rural environmental issues; Coordinaton Dr P. Stemp. • understand die nature and importance of imperfect Prerequisites: 316-201 lntennediateMacrc*x:onornicsand3l6- competition in the marketing of agricuimral products and the 202 Intermediate Microeconomics. oppoitunities for product differentiation vvhich are associ­ Contact Two 1-hour lectures and a 1-hour tutorial a week.ate d with it; (Secondsemester.) • analyse the effects of agricuimral protectionism on interna­ Objectives: On completion ofthis subject students should be able tional trade and on the pursuit of domestic pohcy objectives; to: • appreciate aspects of the world food problem. • extend their knowledge of money and banking via the Content The reasons for government intervention in the agricul­ independent study of books and articles dealing with theory tural sector. The economics of public goods, externalities and the and policy in this area and by taking advanced subjects niral environment Concepts of marketing, including integration, dealing with these matters; promotion, grading and price discrimination. The agricuimral • judge the usefulness and die limitations of existing dieory in policy objectives and instruments of government intervention and the ami of money and banking; regulalion in Australia and in selected countries overseas. Interna­ • critically evaluate contemporary policy debates in die area of tional trade and agricultiiral protectionism. The world food prob­ money and banking with reference to econonuc theory. lem. Smdents may choose any three of the four major topics (environmental economies, agricuimral policy, agricuimral mar­ Content: The role of money and monetary policy in the keting, internationid aspects.) macrocconomy. Topics include: fundamentals of financial markets and institutions widi particular emphasis on money and die banks; Assessment A 2-hour written examination at the end of the the supply of money and the conduct and effectiv eness of monetary semester (80 per cent) and an assignment of up to 3000words (20 policy. International aspects will be considered where appropriate. per cent). A pass in the subject requires not only an overall mark of 50% but also a minimum mark of 45% in the finalwritte n Assessment A 2-hour examination (80 per cent) and class examination. assignments totalling 2000 words (20 per cent). Prescribed text To be advised. Prescribed texts: To be advised. 316-307 LABOUR ECONOMICS 316-310 ECONOMIC TRANSITION IN THE FORMER Coordinaton DrJ Borland. SOVIET BLOC Coordinaton Dr G Kazakevitch. Prerequisites: 316-201 Intermediate Macroeconomics and 316- 202 Intermediate Microeconomics. Prerequisites: 316-201 Intermediate Macroeconomics and 316- Contact Two 1-hour lecmres and a 1-hour mtorial a week.202 Intermediate Microeconomics. (Second semester) Contact Three hoursoflecmresandseminarsperweek. (Second Objectives: On completion of this subject smdents should be able semester.) to: Objectives: On completion of this subject smdents should: • describe the distinctive aspects of the economic approach to • be able to describe key feamres of different types of the study of labour markets; economic systems; • describe the main instimtional feamres and key develop­ • be able to evaluate the abihty of different systems to achieve ments in labour markets in Austraha; various economic goals; • judge the usefulness and the limitations of existing theory for • have an appreciation of the economic problems confronting understanding labour markets; countries in the former Soviet bloc and the variety of methods being developed to deal with these problems; • appreciate the manner in wiiich economic theory can be apphed to understand behaviour in labour markets and to • understand the impact of external forces on transition in the assist in evaluating contemporary poliq debates; former soviet bloc countries and vice-versa • extend dieir knowledge of labour economics through Content This subject examines the experience ofthe return to a independent study of theory and pohcy issues in this area market economy system in the former Soviet Union and in East European countries using analytical and elements of historical and Content Topics related to work and pay, how labour markets comparative approaches to the smdy of the economic transition. function. Topics include labour supply, labour demand, wage Topics to be covered include: basic elements of transition: liberali­ determination, trade unions, unemployment and analysis of cur­ sation; monetary, taxation, social security and foreign trade re­ rent policy issues. Wherever possible examples and empirical forms; deregulation of price system; deiruhtarisation and restruc­ smdies from Austraha will be used to illustrate theoretical work. turing. Economic tiiough towards the transition: domestic econo­ Assessment A 2-hour examination (80 per cent) plus class mists and Westem economic advisors. Possible models of post- assignments totalling approximately 2000 words (20 per cent). communist transformation. The impact of the rest of the world and Prescribed Text Norris K The Economics of Australian Labour international institutions (such as the World Bank, IMF, etc.) on the Markets 3rd edn.Iongman Cheshire transition. The impact of the transition in the former Soviet bloc 316-309 AGRICULTURAL ECONOMICS countries on international trade and capital flows and on the international economy. Coordinaton Dr D Maclaren (Faculty of Agriculture & Forestry). Prerequisite: 316-202 Intermediate Microeconomics. Assessment A 2-hour examination (60 per cent) and class Contact Three lecmres a week for a total of 9 weeks. (Smdentsassignment s totalling approximately 4000 words (40 per cent). choose any 3 of 4 three-week lecture blocks.) 12 hours of tutorials/Prescribe d texts: Carson R L Comparative Economic Systems Vol. 1 and21atestedition,MESarrieinc(avail^ senuhars. (Firstsemester.) and in the Baillieu hbrary); van Brabant J M Remaking Eastern Objectives: On completion of this subject students should be able to: Europe: On tlx Political Economy of Transition Kluw er Aca­ • understand the reasons for government intervention in the demic Publishers 1990 and up-to-date essential reading provided agricuimral sectors of several countries, including Australia, by the Coordinator to the reserve desk of the Baillieu hbrary. and the policy objectives being pursued;

227 The University of Melbourne Handbook 1994 Volume 3

316-311 MARXIAN AND POST-KEYNESIAN Objectives: On completion of diis subject smdents should be able ECONOMICS to: Coordinaton Dr R Dixon. • describe the distinctive approach of economics as a method Prerequisite: 316-201 Intermediate Macroeconomics. of studying consumer and firm behaviour, and market • Contact Three hours of lectures and seminars a week. (Firstoutcomes ; semester.) • formulate and solve simple optimisation problems relating to Objectives: On completion ofthis subject students should: consumer and firm behaviour; • be able to read and critically evaluate works dealing with • recognise situations where economic theory can assist in economics by and about Marx; understanding behaviour or in guiding decision-making, and • be able to read and critically evaluate periodical hterature in to proceed to apply the relevant theory in an appropriate manner; post keynesian economics; • be famihar with non-neoclassical streams of thouglit and • extend their knowledge of microeconomics via independent study of theory and OOUCT issues relating to this area; with criticisms of neoclassical economics. Content Early and modern views on the central concern of • evaluate the limitations of existing theories in the area of classical economics: the production, extraction and allocation of microeconomics. the economic surplus. Marxian economics as a study of surplus Content A more theoretical and intensive treatment of material labour, the nature of the labour process and the dynamics of covered in the first and second years; die consequences of indi­ capitaUst economies. The revival of interest in classical and Marxian vidual optimising behaviour and ofthe nature of social equiUbrium. economics; a critical study of the central propositions of post- Topics include: an introduction to constrained optimisation, con­ Keynesian theory. PoUcy implications of recent work in Marxian sumer dieory, producer theory, perfect compebtibn and mo­ and post-Marxian and post-Keynesian economics. nopoly, game theory and oUgopoly, behaviour under uncertainty, Assessment A 2-hour examination (60 per cent) and class the econom icsof asymmetric information, and general equiUbrium assignments totalling approximately 4000 words (40 per cent). analysis. Prescribed texts: Howard M and KingJ The Political Economy Assessment A 2-hour exiunination (80 per cent), and class of Marx 2nd edition Longmans. Marx K Capital Vol 1 Penguin assignments totaUing approximately 2000 words (20 per cent). Books. Prescribed text Binger B and I loffman EMicroeconomics with Calculus 1st edition Scott Foresman & Co. 316-312 MACROECONOMICS NOTE: Students proceeding to an honours degree in economics arc Coordinaton Dr V Martin. required to Like this subject in the diird year of dieir course and the Prerequisites: 316-201 Intermediate Macroeconomics and 316- subject has been designed accordingly. There are, however, no 202 Intermediate Microeconomics. restrictions on entry to the subject which all diird-year economics Contact Three hours of seminars, lectures and tutoriaLs a stiidentweek. s are welcome to take. (Firstsemester.) 316-314 URBAN ECONOMICS Objectives: On completion of this subject stiidents shoidd be able Coordinator. Dr C Beed. to: Prerequisite: 316-202 Intermediate Microeconomics. • extend their knowledge of macroeconomics via the Contact Two 1-hour carrel sessions anda 1-hoiirtutorial aweek independent study of books and articles dealing with dieory and pohcy in this area and by taking advanced subjects for one semester. (Firstsemester.) dealing with these matters; Objectives: On completion ofthis subject students should be able • judge the usefulness and the limitations of existing theory in to: the area of macroeconomics. • extend their knowledge of urban economics via the "-•f.V independent study of books and articles deaUng with theory Content Current analysis, and its development, in relation to and poUcy in diis area and by taking advanced subjects qcles, growth, and short-term stability; pohcy problems and deaUng widi these matters; appUcations. Special attention will be given to open economy • judge the usefulness and the limitations of existing theory in macroeconomic analysis. the area of urban economics; Assessment A 2-hour examination (80 per cent) and class • critically evaluate contemporary poUcy debates in the area of assignments totalhng approximately 2000 words (20 per cent). urban econonucs with reference to economic theory. Prescribed text Sachs D and Larrain B Macroeconomics in tlx Content Economic concepts used in urban smdies. The role of the Global Economy Harvester Wheatsheaf price mechanism. Externalities and public goods. Urban welfare NOTE: This.subject is one of die four subjects which students criteria Partial and "general equiUbrium. Systems theory: static proceeding to an honours degree in Economics are required to approaches versus dynamic approaches. Housing Housing Fi­ take in either the third or fourth year of their course, and has been nance in AustraUa; spatial demand for housing; housing costs and designed accordingly. There are, however, no restrictions on entry poverty; equity and efficiency aspects of housing poUcy. Urban to the subject which aU third-year economics studenLs are welcome transport Interrelation between transport and land use. Demand to take. for urban transport, trip generation, tripdistiibution, modal choice. 316-313 MICROECONOMICS Pricing of private and pubhc transport. Investment criteria includ­ Coordinaton DrJ Borland. ing cost-benefit analysis. Urban environment The causes and Prerequisites: 316-201 Intermediate Macroeconomics and 316- social costs of poUution. Proposed methods of poUution control 202 Intermediate Microeconomics. (regulation, subsidisation, incentive pricing). Contact Three hours a week of lectures and seminars. (FirstAssessmen t A 2-hour examination (80 per cent); an essay of semester.) approximately 2500 words (20 per cent). Prescribed text Evans A W Urban Economics 1985 BlackweU.

228 Faculty of Economics and Commerce Economics

316-315 REGIONAL ECONOMICS Assessment A 2-hour examination (70 per cent); empirical Coordinator Mr A Kan. exercises (30 per cent). Prerequisites: 316-201 mtermeojateMacrc«conomicsand3l6- Prescribed text Ramanthan ^Introductory Econometrics with 202 Intermediate Microeconomics. Applications Harcourt Brace Jovanovich. Contact Two lectures and a 1-hour tutorial a week. (SecondNOTE : This subject, or 316-317 Econometiics, is one of the four semester) subjects which smdents proceeding to an honours degree in Objectives: On completion of this subject students should be able Economics are reqiured to take in either the third or fourth year of to: their course. • extend their knowledge of regional economics via the 316-317 ECONOMETRICS independent smdy of books and articles deabng with theory Coordinator. DrJ Lye. and poliq7 in this area and by taking advanced subjects dealing with diese matters; Prerequisites: At least one of 316-201 Intermediate Macroeconomics and 316-202 Intermediate Microeconomics, • judge the usefulness and the limitations of existing theory in and either 316-205 Statistical Method 2C or Introductory the area of regional economics; Econometrics or the double-subject 619-210 Probability and • critically evaluate contemporary poliq debates in the area of Statistics. regional economics with reference to economic theory. Contact Two 1-hour lecmres and a 90 minute mtorial/practice Content Processes shaping the economic development of regions class a week. (Firstsemester) and urban areas. Urban areas as components of a regional svstem Objectives: On completion of this subject students should be able growing and changing over time. The way that economic develop­ to: ment occurs in space - alternative economic models (neoclassical, export base, centre-periphery, cumulative causation and a multi­ • derive the main results of regression theory using matrix variate model integrating regional and urban forces for change). algebra; Specific influences on regional and urban development, including: • apply the classical model of ordinary least squares to data natural resources, transport change, agglomeration and disper­ sets drawn from economics and finance using smgle and sion forces, externalities, internal migration theory, labour and multiple regression equations; capital mobility and returns, investment criteria, monopoly power, • test hypotheses about the relationships between variables; the spatial diffusion of innovations and non-economic location • understand the consequences of any of the classical befiaviour.Pohqissuesmcludingsvstemsplariningversus market- assumptioas being violated and to test for such violations; orientated poliq approaches. Case smdies drawn from Austraha, • estimate models in die presence of non-classical errors and Europe and North .America stochastic explanatory variables Assessment A 2-hour examination (80 per cent); an essay of Content Selected topics in probabihty theory, statistical inference approximately 2500 words (20 per cent). and matrix techniques. The classical hnear regression model. Prescribed text Armstrong 11 and Taylor J Regiotud Economics Some specification problems (e.g. functional forms and omitted and Policy 1985 Philip Alan. variables), data problems (e.g. midticollinearity) and error analy­ sis (e.g autocorrelation and heteroskedasticity). Introduction to 316-316 BASIC ECONOMETRICS qualitative dependent variables and systems estimation. Applica­ Coordinaton Professor R Williams. tions to empirical problems in economics and finance. Prerequisites: 316-201 Intermediate Macroeconomics or 316- Assessment A 2-hour examination (80 per cent) and class 202 Intermediate Microeconomics and 316-206Statistical Method assignments up to 40 pages in total (20 per cent). 2D or Quantitative Methods 2. Students may not gain credit for this Prescribed text Maddala G S Introduction to Econometrics subject and for 316-205 Statistical Mediod 2C/Introductory Macmillan Econometrics or 316-317 Econometrics. NOTE: The course is designed for smdents with a mathematical Contact Two 1-hour lectures, a 1-hour tutorial/seminar and an background and is a prerequisite for further subjects in average of one hour of practice sessions a week. (Firstsemester)econometrics . Smdents maynot gain cieditforthissubject and3l6- Objectives: On completion of this subject smdents shoidd be able 316 Basic Econometrics. This subject, or 316-316 Basic to: Econometrics, is one of the four subjects which smdents proceed- • to apply the classical model of ordinary' least squares to data ing to an honours degree in economics are required to takein either sets drawn from economics, finance and accounting using the third or fourth year of their course. single and multiple regression equations; • test hypotheses about the relationship between variables; 316-318 ECONOMETRIC MODELLING Coordinaton Professor R Williams. • understand the consequences of any of the classical assumptions being violated and to test for such violations; Pre or Co-requisites: Prerequisites: 316-201 mtermediate • estimate models in die presence of non-classical errors and Macroeconomics and 316-202 mtermediate Microeconomics. stochastic explanatory variables; Before taking this subject smdents must have passed 316-317 Econometrics or have obtained a first or upper-second class • be able to apply simple models to analyse the time series honours in 316-316 Basic Econometrics. properties of economic and financial data sets. Contact Two 1-hour lectures and a 90 minute mtorial/practice Content Multiple regression analysis and its use in economics. class a w eek. (Second semester) Topics include the properties of the estimators, hypothesis testing, specification error, multicollinearity, dummy variables, Objectives: On completion of this subject smdents should be able heteroskedasticity, serial correlation, and an introduction to simul­ to: taneous systems. All theoretical concepts will be illustrated by • use econometric techniques to data sets drawn from applied examples. economics, finance and accounting using single and multiple regression equations;

229 The University oj"Melbourne Handbook 1994 Volume 3

• use theories drawn from economics and finance to formulate • critically evaluate contemporary pohcy debates in the areas models which can be estimated and various test performed; of international trade and the balance of payments with • understand the consequences of any of the classical reference to economic principles as applied to special topics assumptions being violated; in economics. • model the time series properties of economic and financial Content Special topics may be offered from time to time which data sets. reflect the interests of permanent and/or visiting members of staff. Content: Modellingdynamic relationships, error-correction mod­ Assessment A 2-hour e.xamination (80 per cent) and an assign­ els, co-integration. Specification and estimation of expectations. ment of approximately 2500 words (20 per cent). Stability analysis. Temporal aggregation and data interval bias. 316-321 CHINESE ECONOMY Quantitative and hmited dependent variables. Applications to Coordinaton To be advised consumption, demand for money, cost functions, investment, finance, advertising, labour markets. Empirical assignments form Prerequisites: 316-201 Intermediate Macroeconomics and 316- 202 Intermediate Microeconomics. an integral part of die subject Assessment: A 2-hour examination (60 per cent) and project Contact Three hours of seminars, lectures or mtorials a week. work of up to 4,000 words in total (40 per cent). (Firstsemester.) FTescribed text Berndt E TlxPractice of EconometricsAddison Objectives: On completion of this subject students should be: Wesley 1991. • famihar with die economic, political, and social instimtions widiin vvhich the Chinese economy operates; 316-319 JAPANESE ECONOMY • able to apply economic analysis appropriate to an under­ Coordinaton To be advised. standing of die Chinese economy, Prerequisites: 316-201 Intermediate Macroeconomics and 316- • able to read and critically evaluate economic hterature on the 202 Intermediate Microeconomics. Chinese economy. Contact Two 1-hour lectures and a 1-hour tutorial a week.Conten t An economic analysis of the Chinese economy and of (Secondsemester.) economic changes currendy taking place. Topics include: incen­ Objectives: On completion of this subject students should be: tives in collective and suite owned enterprises; price scissors and • familiar with the economic, pohtical, and social institutions the invcstable surplus; interaction between die plan and die market; within which thejapanese economy operates; corruption, rent seeking and the underground economy; the • able to apply economic analysis appropriate to an under­ relationship between ideology and economic pohcy in China; standing of thejapanese economy, comparison between Chinese and Soviet economic reforms; Aus­ • able to read and critically evaluate economic hterature on the tralia-China economic relations. The analytical tooLs developed in Japanese economy. this subject coidd also be applied to Soviet and East European economies. Content Ihe current operation and management of thejapanese economy and its impact on Australia's economic relations with Assessment A 2-hour examination (60 per cent) and a 3500- Japan, with empiiasis on die analytic and pohcy interests in the word essay (40 per cent). operation and management of the Japanese econonuc system; a Prescribed text Riskin C China's Political Economy Oxford system which is built on different social and industrial foundations University Press. from those found in Australia NOTE: Students cannot obtain credit for bodi this subject and 316- Assessment A 2-houre.xamination (75percent) and2500-word 2/340 Chinese Political Economy. essay (25 per cent). Smdents may be required to present a discussion paper for tutorials. 316-323 PRIVATISATION AND REGULATION Coordinaton Dr S King. Prescribed texts: Yamamura K and Yasuba Y (eds.) The Political Economy of Japan \o\ 1 1987 Stanford University Press. InoguchiPrerequisites : Second year 316-202 Intermediate Micro-eco­ T and Okimoto D (eds.) Tlx Political Economy of Japan Vol 2 nomics must be passed before this subject is taken. Stanford University Press. Contact lectures and/or tutorials averaging three hours per vveek NOTE: Smdents cannot obtain credit for both diis subject and 316- througliout the semester. (Secondsemester) 239/339Japanese Pohtical Economy. Objectives: On completion ofthis subject smdents should be able to: 316-320 SPECIAL TOPICS IN ECONOMICS • extend dieir knowledge of privatisation and regulation via the (Not offered in 1994) independent study of books and articles dealing with dieory Coordinaton To be advised. and pohcy in this area and by taking advanced subjects Prerequisites: 316-201 Intermediate Macroeconomics and 316- dealing with these matters; 202 Intermediate Microeconomics. • judge the usefulness and the limitations of existing theory in Contact Three hours of seminars, lectures or mtorials. (Secondthi s area; semester.) • critically evaluate contemporary pohcy debates in this area Objectives: On completion of this subject smdents should be able with reference to economic principles as apphed to the to: analysis of privatisation and regulation. • extend their knowledge of special topics in economics via the Content This subject vvill examine the interaction of government independent smdy of books and articles dealing with theory regulatory policy with both public and private enterprises. The and pohcy in this area and by taking advanced subjects subject focuses on both proposed and current privatisation policies dealing with these matters; and regulatoiy schemesforvarious Austrahan industries. Compari­ • judge the usefulness and die limitations of existing theory in sons with overseas experiences will be drawn where appropriate. specific areas of economics; The first part of the subject presents an analytical framework in which these issues can be addressed. The remainder ofthe subject will focus on specific case studies.

230 Faculty of Economics and Commerce Economics

Assessment One.2-hour examination (80 per cent) and class Objectives: On completion of this subject, smdents should be able assignments totalling approximately 2,500 words (20 per cent). to: 316-324 ENVIRONMENTAL ECONOMICS » describe the distinctive aspects of the economic approach to the study of contemporary economic problems; Coordinator: Dr D Alden. o describe the main instiutional features and key developments Prerequisites: 316-201 mtermediate Macroeconomics and 316- in the Austrahan economy; 202 Intermediate Microeconomics o evaluate the usefulness and the limitations of economic Contact Three hours of lectures/seminars. (Secondsemester.)theor y for understanding the Austrahan economy, Objectives: On completion of this subject students shoidd be able ° appreciate the manner in which economic theory can be to: apphed to understand the behaviour of the Austrahan » extend their knowledge of environmental economics via the economy and to assist in evaluating contemporary poliq independent smdy of books and articles dealing with theory debates; .and policy in this area and by taking advanced subjects o extend their knowledge of the Austrahan economy through dealing widi these matters; the mdependent study of theory and poliq issues in this area o judge the usefulness and the limitations of existing theory in Content This subject focuses on the appUcation of economic the area of environmental economics; analysis to current poliq issues in the AustraUan economy. Topics o critically evaluate contemporary poliq' debates in this area covered may include budgetary poUq, monetary ppUq, incomes with reference to economic principles as apphed to the poUq, microeconomic poUq, environmental poliq and external analysis of the environment poliq. Particular attention wiU be paid to the poUtical and social Content Environmental issues will be addressed with the aid of institutioas involved in the poliq-making process. economic theory. Topics include: sustainability of economies; Assessment A 2-hour examination at the end of the semester pollution as an externality; approaches to dealing with pollution in (80%), and class assignments totaUing approximately2000words different countries; methods of valuing die environment and envi­ (20%). ronmental damage; environmental ediics and future generations; die use and depletion of renewable and non-renewable natural 316-350 TlME SERIES ANALYSIS & FORECASTING resources; the environment and economic development. Coordinators: Dr V Martin. Assessment A 2-hour examination (80 per cent) and an essay of Prerequisite: 316-317 Econometrics or 316-316 Basic approximately 2,500 words (20 per cent). Econometrics or 619-210 ProbabiUty and Statistics. Prescribed text D W Pearce and R K Turner, Economics and Contact Two 1-hour lectures and a 90 minute mtorial/practice Natural Resources and the Enviromnerd, Harverst Wheatsheaf class a week (Second semester.) 1990. Objectives: On completion of this subject smdents should: 316-325 DEVELOPMENT OF NEOCLASSICAL • be familiar with advanced techniques to examine the time ECONOMICS series properties of data sets drawn from economics and finance; Coordinaton ProfessorJ Creedy. o lie able to make forecasts and evaluate forecasts. Prerequisites: The second year subject 316-202 Intermediate Content Current techniques used in forecasting in finance, ac­ Microeconomics must be passed before this subject is taken. counting and economics. Regression models, exponential smooth­ Contact Lecmres/seminarstoLalling3 hoursperweekthroughout ing methods, Box-Jenkms, ARIMA models, vector autoregression, the semester. (Secondsemester.) causality analysis, and forecast evaluation. Objectives: On completion of dus subject students should: Assessment A 2-hour examination (60 per cent); empirical o be able to read and understand primary sources' in diis area; exercises (40 per cent). o understand die major developments in neoclassical economics in the nineteenth and twentieth centuries. Prescribed text Holden K et al. Economic Forecasting: An Content The purpose of this subject is to examine the development Introduction Cambridge University Press of neoclassical economic theory from approximately the middle of 316-351 ECONOMICS OF FINANCIAL MARKETS the last cenmry. Empiiasis vvill be on neoclassical microeconomic Coordinaton To be advised. theory, including the work of Jevons, Walras, Wicksell, marshall, Prerequisites: 316-201 mtermediate Macroeconomics, 316- Edgeworth and odier major neoclassical economics. The course 202 Intermediate Microeconomics and either 316-205 mtroduc­ will be concerned with looking at modem microeconomic theory tory Econometrics or 316-206 Quantitative Methods 2. from an historical perspective. Students will be expected to read Contact Three hours of seminars or lecmres and mtorials a week. original works as well as secondary hterature. (Firstsemester.) Assessment One 2-hour examination (80 per cent) plus one essay of approximately 2,500 words (20 per cent). Objectives: On completion of this subject smdents should be able to: Prescribed texts: CreedyJ Demand and Exchange in Economic Analysis; A History from Cournot toMarslxdlEdward Elger 1992. • extend dieir knowledge of the economics of financial CreedyJ Edgeworth and the Development of Neoclassical Eco­ markets via the independent smdy of books and articles nomics Basd Blackwell 1986. dealing with theory and poUq in this area and by takmg advanced subjects deaUng with these matters; 316-326 ECONOMIC ANALYSIS AND POLICY • judge the usefulness and the Umitations of existing theory in Not offered in 1994 the area of economics of financial markets; Prerequisite: 316-201 Intermediate Macroeconomics and • critically evaluate contemporary poUq debates in this area 202 Intermediate Microeconomics. with reference to econonuc principles as appUed to the analysis of financial markets. Contact Two 1 -hour lecmres and a 1 -hour mtorial per week.

231 The University ofMelbourne Handbook 1994 Volume 3

Content* Introduction to financial economics (including a brief 316-450 GAME THEORY AND INFORMATION review of general equilibrium theory); choice under certainty; term ECONOMICS structure of interest rates; brief introducdon to financial Coordinator DrJ Borland. econometrics; pricing risky assets;.capital-asset pricing model and Prerequisites: 316-313 Microeconomics or equivalenL (First the Arbitrage pricing theory. Theory of efficient markets; financialsemester.) deregulation and innovation; international finance; foreign cur­ Contact Three hours a week of lectures/seminars. rency markets and interest parity. Objectives: On completion ofthis subject smdents should be able Assessment- A 2-hour examination (80 per cent) and an essay of to: approximately 2000 words (20 per cent). • identify situations involving strategic behaviour which can be Prescribed text Wood J H and Wood N L Financial Markets studied with die aid of game iheory, Harcourt Brace Jovanovich. • apply the techniques of game theory to develop simple 316-352 QUANTITATIVE BUSINESS ANALYSIS formal models of strategic situations with the aim of Coordinator MrJ Shannon. understanding and guiding decisionmaking in that context; Prerequisite: 316-205 Introductory Econometrics or 316-206 • evaluate critically the methodology and assess the usefulness Quantitative Methods 2. of applications of game dieoretic modelUn'g; Contact Two 1-hour lecmres and a 90 minute mtorial/practice• exten d dieir knowledge of game theory via independent smdy class a week. (Secondsemester.) and by taking advanced subjects in game theory. Objecdves: On completion of this subject smdents should be able Content Noncooperative game iheory and die economics of •to: ' - . .asymmetric infonnation, with emphasis on die'corelconcepts in • determine whether significant differences exist between each of diese fields and on illustrating the uses of each theoretical either univariate or mutivariate populations; stnicture widi a range of appUcations. • obtam simultaneous interval estimates of die parameters in Assessment A 3-hour examination (80 per cent) and class multivariate populations; assignments totaUing approximately 2000 words (20 per cent). • use ANOVA and MANOVA procedures with both univariate Prescribed Text: Gibbons RA Primer in Game Theory Harvester and multivariate populations; Wheatsheaf • employ either discriminate analysis or logit analysis to 316-451 OPEN ECONOMY MACROECONOMICS classify mdividual cases into different categories. Coordinators: Dr R Dixon. Content Linear programming and decision theory and some ofthe Prerequisites: 316-312 Macroeconomics, and 316-316 Basic key apphcations in areas such as Financial Management, Media Econometiics or 316-317 Econometiics. Selection, Capital Budgeting, Production Control and Transporta­ Contact Three hours a vveek of lectures/seminars. (First semes­ tion Models. ter.) Assessment A 2-hour examination (80 per cent), a assignment Objectives: On completion ofthis subject stiidents should be able (10 per cent) and.weekly mtorial exercises (TO per cent). to: Prescribed text Lapin L L Quantitative Metljvds for Business • constnict and operate computerised models of the economy, Decisions Harcourt Brace Jovanovich. • interpret die output of the major macroeconometric models FOURTH YEAR HONOURS SUBJECTS of die Australian economy in current use; The following subjects are available only to those admitted to the • judge die usefulness and die limitations of existing theory in honours degree unless special approval is granted by the Head of the area of open economy macroeconomics; the Department of Economics: • criticaUy evaluate and comment upon contemporary macroeconomic poUcy debates; 316-449 FINANCIAL ECONOMETRICS • extend their knowledge of macroeconomic poUcy modeUing Coordinator To be advised. via independent study and by taking advanced subjects in this Prerequisites: A pass or better in 316-317 Econometrics or anarea . honours grade in 316-316 Basic Econometrics; in special circum­ Content Tlie use of open economy macroeconomic models in stances Diploma students may be given permission to enrol. Some economic poliq'analysis. Recent developments in open economy familiarity with the principles of financial analysis is desirablemacroeconomi c theory, the design of macroeconomic models; the Contact Three hours a week of classes for one semester. (Secondderivatio n of poUq multipUers; poliq simulation techniques and semester) sensitivity analysis of economy-wide models; some elements of die Objectives: On completion of this subject studenLs should be able modern theory of economic growth; an examination of some, to: current issues in macroeconomic poliq. • construct and test hypothesis deaUng widi financial data Assessment A 3-hour examination (80 per cent) and class using advanced econometric techmques; assignments totalling approximately 3000 words (20 per cent). • be famihar with ARCH and GARCH models; Prescribed text LesUe D Advanced Macroeconomics McGraw • extend their knowledge of financial econometrics via HiU mdependent smdy and by taking advanced subjects in this area 316-460 ADVANCED RESTRICTIVE TRADE Content An econometric treatment of topics in finance. Topics PRACTICES chosen from: portfoUo theory, capital asset pricing models; Arbitrage Coordinator Professor M Bmnt pricingtheory, efficient markets hypothesis; covered interest parity, Prerequisite: Microeconomics 316-313 or eqiuvalent Students term strucmre of interest rates; option pricing models; dividend may enrol in this subject only with the consent of bodi Professor poUcy event smdies. Bnint and the Head of the Department of Economics. Assessment A 2-hour examination (50 per cent) and empirical Contact 12 x 2-hour serninars. (Secondsemester.) assignments of up to 3000 words (50 per cent).

232 Faculty of Economics and Commerce Economics

Objectives: On completion of this subject smdents should: • extend their knowledge of PubUc Economics via independent • understand the strucmre of the Trade Practices Act and the study and by taking advanced subjects in this area interaction between the various restrictive trade practices Content The general problems associated with the role ofthe State provisions; in the economy. Topics mclude: theories of die State; public choice; • be able to construe each restrictive trade practice section of pubhc goods and publicly provided private goods; local pubUc tlie Trade Practices Act in tenns of its mixed economic- legal goods; pubUc expenditure growth; the national debt and the debt content; burden; taxation and savings; the strucmre of direct and indirect • have an imderstanding of relevant economic concepts such taxation; tax incidence; income redistribution. as "markets", "market power", "competition", "barriers to Assessment A 3-hour examination (80 per cent) and class entry", "economic efficiency"; assignments tofcdling approximately 2000 words (20 per cent). • develop the ability to analyse and appraise the reasoning of Prescribed text Atkinson A and StigUtz J Public Econonucs the courts in leading cases; McGraw IUU. • understand how court procedures and the laws of evidence 316-466 MONETARY ECONOMICS shape the outcome of litigation, and the development and Coordinator. Dr G Lim. efficacy of die law; Prerequisite: A three-year sequence in economics, mcluding • develop the abihty to identify in actual forms of business 316-313 Microeconomics or equivalent and 316-306 Money & conduct practices that are prohibited or suspect; Banking. • understand the policy objectives in legislating to control Contact Three hours a week of seminars or lecmres and mtorials. various categories of restrictive trade practices such as (Firstsemester.) "price-fixing", "misuse of market power", mergers for "market dominance" and "exclusive dealing"; Objectives: On completion of this subject smdents should be able to: • be aware of the analytical circumstances in which restrictive practices, and market power, promote the pubhc interest • understand the main theories used in the smdy of monetary and how to identify those circumstances in practice; economics; • develop a critical appreciation of the stnicture of penalties • judge the usefulness and the Umitations of advanced theory in and remedies for breaches of die Act; the area of monetary economics; • understand the significance of the Closer Economic • criticaUy evaluate contemporary poUcy debates in the area of Relationship with New Zealand for AustraUan trade practices monetary economics with reference to advanced economic law; theory, • be famdiar with the leading US and EEC cases and commen­ • extend their knowledge of monetary economics via inde­ taries that impact upon die development of our law or offer pendent study and by taking advanced subjects dealing with alternative approaches. dieory and pohcy in diis area Content A study of depth of those parts of die Trade Practices Act Content The course will cover advanced monetary theory and 1974 (Cdi) dial relate to restrictive trade practices. This is an poUcy. Topics covered will include theories of money demand and interdisciplinary seminar which aims to integrate the relevant law money supply, monetary macroeconomics, and the theory of of economics and to highlight important issues of business poUcy. monetary pohcy. International aspects will be covered where appropriate. Topics wiU include price fixing and other coUusive agreements, misuse of market power, mergers, resale price maintenance, Assessment A 3-hour examination (80 per cent) and class exclusive deaUng, authorisation and exemption, enforcement and assignments totalhng approximately 3000 words (20 per cent). remedies. These arc issues raised by most legislation to control Prescribed texts: To be advised monopolies and restrictive practices, and die course aims to NOTE: hi special circumstances smdents enroUed in the honours develop analytic skills which wiU be of continuing relevance year in Economics may be permitted (by the Head of the Depart­ whatever the amendments to the law. Reference wiU be made to themen t of Economics) to take 316-466 in Ueu of 316-312 C.E.R. Agreements and to the New Zealand Commerce Act and Macroeconomics, for the pu rposes of satisfying the rules governing cases. enrolment in the honours year in econonucs. Assessment A written report of 1500 words on an approved topic (30 per cent). An open book take-home examination (50 per 316-467 ISSUES IN MICROECONOMIC ANALYSIS cent). Seminar participation (20 per cent). AND POLICY NOTE: A quota applies to this subject Coordinaton Dr N Norman. Prerequisite: 316-313 Microeconomics orequivalent 316-462 PUBLIC ECONOMICS Contact Three hours a week of seminars. (First semester.) Coordinaton ProfessorJ Creedy. Objectiv es: On completion of this subject students shoidd be able to: Prerequisite: 316-313 Microeconomics or equivalent • understand the main theories used in important areas of Contact Three hours a week of lecmres/seminars. (Second poUcy-oriented microeconomic analysis; semester) • critically evaluate contemporary pohcy debates in the area of Objectives: On completion ofthis subject smdents should be able rmcroeconomic policy with reference to advanced economic to: theory, • understand key theories relating to pubUc expenditure and • extend their knowledge of miCTcecoriornic policy via iiideo taxation; study and by taking advanced siibjectsm this area • judge the usefulness and limitations of current economic Content The application of advanced micro-economics in Aus­ models used in die area of public economics; trahan poUcy analysis and debates, including (inter aUa) industry • criticaUy evaluate contemporary poUcy debates in the area of regulation, deregulation and privatisation, die economic analysis of pubUc economics with reference to advanced economic legal disputes and their resolution, the economics of technological theory, change, economics of the environment and some microeconomic

233 Tlx Umversity ojMelbourne Handbook 1994 Volume 3

issues which arise in trade pohcy. A small number ofthe seminars316-47 0 ECONOMETRIC TECHNIQUES will be given by specially imited speakers. Coordinator. DrJ Lye. Assessment A 3-hour e.\aminadon (80 per cent) and class Prerequisites: 316-317 Econometrics and 316-318 Economet­ assignments totalling approximately 2000 words (20 per cent). ric Modelling or their equivalent 316-468 GENERAL EQUILIBRIUM AND WELFARE Contact Three hours a week of classes. (First semester) Objectives: On completion ofthis subject students should be able ECONOMICS to: Coordinator ProfessorJ Creedy. • understand asymptotic theory as it apphes to estimation and Prerequisite: 316-313 Microeconomics. inference; Contact Three hours of lectures and seminars a week. (First • apply estimation and inference techniques appropriate for semester.) systems of equations; Objectives: On completion of this subject smdents should be able to: • conduct non-linear estimation; • apply maximum likelihood techniques; • understand Ihe main theories used in the smdy of general equilibrium and welfare economics; • estimate equations and test hypotheses using panel data; • judge the usefulness and the limitations of advanced theory in • apply classical testing procedures; the area of general equihbrium and welfare economics; • apply nested and non-nested tests of model specification; • critically evaluate many contemporary economic policy • extend dieir knowledge of econometric techniques via debates with reference to general equilibrium and independent study and by taking advanced subjects. welfareeconomics; Content Appropriate estimation and inference techniques for • extend their knowledge of general equihbrium and welfare models that involve a single equation and diose involving systems of economics via independent smdy and by taking advanced equations. Topics vvill include: asymptotic theory, maximum like­ subjects in this area lihood estimation, classical testing procedures, generalised least Content Exchange with prize-taking behaviour (utility and non- squares estimation, seemingly unrelated regression models, utility approaches), exchange without prize-taking, the role of stochastic regressors, instrumental variables, simultaneous equa­ numbers in competition, Nash bargaining solution, social welfare tions models and model-selection procedures. functions, expenditure functions and compensating Assessment A 2-hour examination (70 per cent) and class variations.production of a general equilibrium model, theeffectsof assignments (30 per cent). incomeand commodity taxes in general equilibrium, laboursupply Prescribed text Judge G C and Griffidis W G et al Introduction with taxes and transfers, general equihbrium with variable labour. to theTheoryandPracticeoj"fco/iow/e/ncs 2nd edition, Wdeyor Assessment A 3-hour examination (80 per cent) and class Greene W Econometric Analysis Macmillan assignments totalhng approximately 2000 words (20 per cent). 316-473 REGIONAL AND URBAN ECONOMICS 316-469 FINANCIAL ECONOMICS Not available in 1994 Coordinaton ProfessorJ. Eichberger. Coordinator To be advised. Prerequisite: 316-313 Microeconomics or equivalent. Prerequisite: 316-313 Microeconomics or its eqiuvalent Contact Three hours a week of seminars. (Second semester.) Contact Three hours a vveek of seminars. Objectives: On completion of diis subject students shoidd be able Objectives: On completion ofthis subject smdents should be able to: to: • understand the main theories used in the study of financial • understand the main theories used in the smdy of regional economics; and urban economics; • judge the usefulness and the limitations of advanced theory in • judge the usefulness and die limitations of advanced theory in the area of financial economics; the area of regional and urban economics; • critically evaluate contemporary pohcy debates in the area of • critically evaluate contemporary policy debates in the area of financial economics with reference to advanced economic regional and urban economics with reference to advanced theory, economic theory • extend their knowledge of financial economics via inde­ • extend their knowledge of regional and urban economics via pendent smdy and by taking advanced subjects in this area independent study and by taking advanced subjects in this Content The economics of financial markets and financial insti­ area mtions, including a substantial component of financial economic Content Recent developments in theory pertaining to spatial theory and some important current issues in the management of arrangement of economic activity, current policy issues. Topics financial instimtions and the ev olution of financial markets. Topics selected from: urban transportation and land use; regional growth include the theory of choice under certainty and uncertainty, and unemployment; uncertainty and location; factor mobility financial theory of the firm, asset pricing models, efficient markets analysis of market areas; imphcations of developments in informa­ theory, theory of financial intermediation, risk management in tion technology for the location of activity, die spatial diffusion of financial instimtions and capital adequacy and pnidential supervi­innovations. sion of banks. Assessment A 3-hour examination (80 per cent) and class Assessment A 3-hour examination (80 per cent) and class assignments totalling approximately 2000 words (20 per cent). assignments totalling approximately 2000 words (20 per cent). Prescribed text To be advised 316-475 ECONOMICS RESEARCH ESSAY Coordinator ProfessorJ Creedy. Prerequisites: A three-year sequence in economics. Contact Tiiirteen 90 minute seminars and hvo 1/2-day work­ shops. (Double semester)

234 Faculty of Economics and Commerce Economic History

Objectives: On completion ofthis subject students should be able Assessment An essay and assignment totalling 2500 words (40 to: percent) anda2-hourend-of-semesterexamination (60 per cent). • initiate and successfully execute small economic research Prescribed texts: Dyster B and Meredith D Australia and tbe projects with litde supervision; International Econonty in tlx Twentieth Century Cambridge. • give good written and oral presentations of research findings;Australi a in tlx Global Economy: Tutorial Readings (available • conduct surveys of the hteramre in any branch of economics from the University Bookroom). efficiendy and well. 326-103 THE ASIAN ECONOMIES Content: The seminars will discuss problems associated with Coordinaton Associate Professor D T Merrett writing the research essay and vvill provide the opportunity for Contact Two 1 -hour lecmres and a 1-hour mtorial a vveek smdents to present papers on their work-in-progress. The research (Secondsemester.) essay, of approximately 10 000 words, is to be on a topic approved by the head of the departmenL Objectives: Smdents should achieve an understanding of the reasons for die dynamism of die Asian economies in the recent past Assessment The essay itself is examined. It is to be submitted by They should be able to demonstrate an understanding of the role of the end of the second semester. the government and the market as allocators of resources and as 316-476 SPECIAL TOPICS IN ECONOMIC ANALYSIS engines of development They should be able to demonstrate an Not offered m 1994 understanding of the integration of Asian econonucs into die global economy and the consequences that have followed from that Coordinaton To be advised. process. They should be able to demonstrate an understanding of Prerequisites: A three-year sequence in Economics. the role of multinational enterprises and supranational financial Contact Three hours a week of seminars for one semester. markets in Asian economies. Students should be able to demon­ Objectives: On completion of this subject smdenLs should be able strate an understanding of the ways in vvhich Asian economies to: 'differ' from those in the West • understand the main theories used in the study of the topics Content Topics to be studied may include: Japan as an economic presented in this subject superpower, the economic reform in communist China; the Asian • judge the usefulness and the limitations of advanced theory in Tigers; ASEAN; the transformation of agrarian economies to indus­ these areas; trial and science based economies; the 'green revolution' in • critically evaluate contemporary pohcy debates in the areas agriculture and its consequences; population growth; the genera­ covered in this subject; tion of savings; investment and technological change; the role of • extend their knowledge of these topics via independent study multinational enterprises; the relationships between the state, and by taking advanced subjects in these areas. bureaucracy and business; industrial and trade policies; the Content Special topics may be offered from time to time which collectionist namre of Asian societies and the coasequences for reflect the interests of permanent and/or visiting members of staff. management and labour relations; export led industrialisation. Assessment A 3-hour examination (80 per cent) and class Assessment An essay and assignment totalling no more dian 2500 assignments of up to 2000 words in total (20 per cent). words (40 per cent) and a 2-hour end-of-semester examination (60 per cent). FTescribed text Tlx Asian Economies: Tutorial Readings Economic History (available from the University Bookroom). ORDINARY DEGREE NOTE: Smdents intending to take an honours degree in economic historyshould note that not all of the following subjects can be taken FIRST YEAR as approved level 3 subjects for the purposes of fourth year. Smdents should consult the section dealing with the honours 326-102 AUSTRALIA IN THE GLOBAL ECONOMY degree before choosing their subjects. Coordinaton Dr D M Sydenham. Contact Two 1-hour lecmres anda 1-hourtutorialaweek. (FirstSECON D AND THIRD YEAR semester.) 326-201/301 BUSINESS IN AMERICAN HISTORY Objectives: The aim of this subject is to introduce smdents to the Coordinaton Dr D M Sydenham. broad outlines of recent Australian economic history by an analysis Prerequisites: Either hvo of: 326-102 Australia in the Global of the historical origins of contemporary economic problems. The emphasis is placed upon Australia's role and function wiihin the Economy or 326-103 East Asian Economic Development or 316- international economy and the nature of Australia's economic 101 mtroductory Macroeconomics or 316-102 mtroductory performance in die marketplace. In particular die course is Microeconomics, or any first-year history subject strucmred around current debates about Australian industry's Contact Two 1-hour lecmres and a 1-hour tutorial a week. failure to become internationally competitive and the circum­ (Secondsemester.) stances under which it might become so. Objectives: The objective of this subject is to introduce students to Content Topics studied will include: the role of resource abun­ die smdy of business history by an examination of the emergence, dance in generating a large share of global markets in precious rise and development of American business styles and strategies. metals and bulk commodities; the roleoftechnological change; the Content Topics for study will include: the transition of American relationships behveen the degree of competition in domestic business from traditional family firmswit h a domestic focus to markets and export competitiveness; the effects of a small and transnational corporations competing in the global marketplace; highly regulated economy on cost stnictures; the effect of distance the role of government in regulating, supporting and protecting on Austraha industries; the role of die government in promoting or business; die impact of regional diversity and identification upon retarding export capability. the patterns of business development; an examination ofthe major writers and texts in die field with particular attention to the ideas and techniques espoused by Alfred D Chandler.

235 The University of Melbourne Handbook 1994 Volume 3

Assessment: A 3000 word essay (40 per cent) and a 2-hour inherent in the modern consumer society and, more generally; examination (60 per cent). develop a sense of change through timeandseehowthe present can be better understood by examining the past; and commumcativ e, 326-205/305 THE JAPANESE BUSINESS SYSTEM research and analytical skills. .... Coordinator Dr A G Thompson. Content This subject examines the creation of the modern Prerequisites: Students will be expected to have passed at least consumer society and how it has evolved during the 20th century. nvo of the following subjects, 326-102 Austraha in the Global It considers the changing nature of consumer behaviour and the Economy, 326-103 East Asian Economic Development, 316-101 way in which American firms created and sustained a mass market. Introductory Macroeconomics and 316-102 Introductory Topics include: changes in production techniques (the rise of mass Microeconomics. production and of lean production), changes in wholesaling and Contact Three hours a week of seminars, lectures and tutorials.retailing (including the rise of department stores, chain stores and (Firstsemester.) franchises), the creation of new products and new lifestyles, the rise Objectives: At the end of this course studenLs should be able: to and fall of mass marketing (vvhich includes an analysis of the namre understand the importance of the smdy of die Japanese business and impact of advertising and other sales and promotion tech­ system both from the practical perspective of dealing effectively with niques as well as of design as a marketing weapon), and the rise and Japanese business people and from the perspective of the chal­ transfonnation of the consumer movement • lenges presented to Western economic and business theories by Assessment A 3000 word essay (40 per cent) and a 2-hour Japanese practices; to understand the economic structure ofjapan, examination (60 per cent). its major business instimtions, and the characteristics of important Prescribed text Susan Slrasser, Satisfaction Guaranteed: The business practices such as decision-making processes;.to have.a_•. Makin g of tlx American Mass Market, New York,-Patheon,-1989. broad understanding of the history of Japanese economic develop­ ment and of the evolution of major institutions and practices; to 326-228 MANAGEMENT STRATEGIES AND critically examine explanations of Japanese business practices and BUSINESS DEVELOPMENT institutions, especially claims about the unique culmral bases to the Coordinator Professor S. Nicholas: business svstem and key components ofthe system; to consider die Prerequisite: 316-102 Introductory Microeconomics. forces for change in the Japanese business system both internally Contact Two 1-hour lectiires and a 1-hour mtorial per week and internationally and die implications for future trends in the (Hirst semester.) Japanese business system; and for Australian business relation­ Objectives: The aims of diis subject are to introduce students to the ships with Japan. complexity of the evolving stnicture and organisation of modern Content Understanding Japanese business behaviour since the corporations; to compare and contrast alternative forms of busi­ Meiji era by explaimng the logic ofJapanese business organisations ness organisation; to provide an analytical stnicture to analyse and and practices. Topics may include: the labour relations system; understand the stnicture and organisation of today's large firms; authorityand responsibility injapanese organisations; the relation­ and to critically assess managerial strategies for firm growth. The ship behveen government and business; the role of the zaibatsu, subject provides students in accounting, economics and industrial sogo shosha and keiretsu; the Japanese approach to stnictural relations with an introduction to many basic ideas and concepts change; education and economic perfonnance; die commercial employed in advanced courses in dieir major field of study. behaviour of Japanese entrepreneurs. Content This subject analyses the origins, evolution and attributes Assessment A mtorial assignment of not more than 500 words (5 of die modem business corporation. The principal focus is on percent);an essayof not more dian2,500 words (25 percent); and strategic decision-making by managers which determines die form a 2-hour open book examination or a take-home examination at the of die firm's relationship with its external environment and the end of the semester (70 per cent). _ organisation of its internal stnicture. Specifically, the course Prescribed texts: The Japanese Business System: Tutorial investigates how managers introduce policies for vertical integra­ Readings (available from the University Bookroom). tion, diversification and multinational expansion and how manag­ 326-224/324 THE CONSUMER AGE ers implement monitoring and control mechanisms vvhich deter­ mine the fonn of the firm's organisational structure. An important Coordinator Dr D.J. Oxley. part of the subject examines the use of accounting tecliniques as Prerequisites: Eidier hvo of: 326-102 Australia in the Global control and decision-making devices to assess and act on data Economy or 326-103 East Asian Economic Development or 316- generated both by die firm's external environment and its internal 101 Introductory Macroeconomics or 316-102 mtroductory organisation. Microeconomics, or any first year history subject Australia's corporate economy is described and die issues sur­ Contact Two 1-hour lectiires anda 1-hourtutorialaweek. (Firstroundin g the revitahsation of die Austrahan economy in a competi - semester.) five world discussed. Objectives: Smdents completing this subject shoidd be able to: The subject contrasts the different ways Western and Japanese firms understand the meaning of die terms consumer society and mass are organised, assessing the relative merits of these alternative types market, the relationship behveen mass production and mass of business organisation. Tlie course explores whether die Japa­ consumption; the way in which, and why,"the distribution of goods nese form of business organisation (such as teamwork, life-time and services, and especially retailing, has changed radically since employment, seniority wages and enterprise unions) and die close the mid-19th century, analyse critically die nature and effectiveness external relationships behveen Japanese parent firms and subcon­ of marketing in convincing consumers to buy goods and under­ tractors and supplier are uniquely Japanese. Odier orgiuiisation stand the way in which marketing techniques have evolved over forms, such as strategic alliances, joint ventures and coalitions are time; be more keenly aware of their role now and in the future as analysed: Tlie rise of scientific management and the evolution of consumers; assess some of their own attimdes, assumptions and segmented and internal labour markets are investigated. actions'by considering the historical context in which they were formed; understand some of the major frustrations and conflicts iTincipal/agcnt dieory and transaction and cost economics fomi the organising concepts for die subject

236 Faculty of Economics and Commerce Economic History

Assessment: Written work of not more dian 3,000 words (30%) Assessment A essayof up to 3000 words (30 per cent). A 2-hour and a 2-hour end-of-semester examination (70%). examination or a take-home examination at the end of the semester (70 percent). 326-229/329 LABOUR HISTORY Prescribed text SHw'/zessfl/zrf/ta Coordinaton Dr D J Oxley. Tutorial Readings (avadable from the University Bookroom). Prerequisites: Students are required to have passed hvo of the following: 316-101 Introductory Macroeconomics, 316-102 In­ 326-306 THE GREAT ECONOMISTS troductory Microeconomics, 326-102 Australia in the Global Coordinaton Dr K Alford. Economy, 326-103 East Asian Economic Development or any first Prerequisites: A pass in a second-or titird-year economic history year history subject. subject or two second-y ear economics subjects. Contact Two 1-hour lecmres and a 1-hour mtorial a week.Contact Two 1-hour lecmres anda 1-hourtutorialaweek. (First (Secondsemester.) semester.) Objectives: Smdents undertaking Labour History should develop Objectives: To be famihar with past and present developments in an understandingof (I) thehistoricaldevelopmentofwork, labour econonuc theory. To understand the Unkages between economic reladons and organisation, (2) labourmarketand related theories, theory and economic development over time. To evaluate the and (3) primary source research. reasons why economic theory focuses on some types of economic Content The course examines the changing experiences of labour activity and not odiers (e.g. on market-based rather than on home since white setdement in AustraUa Issues include: defining work and community-based production and employment). To critically and skiU; labour market fragmentation; poverty; scientific manage­ evaluate tlie contribution to economic theory of dissenting and ment; w orkers, trade unions, and arbitration; the impact of class, alternative economic dieories. gender and ethnicity on Labour market organisation and the Content The course provides an introduction to Classical, Marxian, differing experiences of workers. The historiography is canvassed, Neoclassical and Post-Keynesian economics in the Anglo-American mdustry case studies are considered, and practice is given in tradition. It provides a brief chronological overview ofthe work of making history, i.e. in perfonning primary research and writing up great economists such as Adam Smith, Karl Marx and Keynes, and a research project. ends with a review of cunent economic thought Although the focus Assessment One research project of approximately 3000 words is on mainstream economics, the course includes some 'non- (50 per cent), a 2-hour examination (40 per cent) and mtorial mainstream' aonondcmoughLinchidingthatbyandaboutwomen. participation (10 per cent). Assessment An essay of up to 3000words (40 per cent). A 2 -hou r end-of-semester examination (60 per cent). 326-226/326 BUSINESS AND DEVELOPMENT IN Prescribed text One of the foUowing: Blaug M Economic Theory SOUTH-EAST ASIA in Retrospect 4th ed. 1985; Landreth H and Colander D History of Coordinaton Dr A G Thompson. Economic Theory 2nd ed. 1989; Ftima I Development of Eco­ Prerequisite: 326-102 AustraUa in the Global Economy ornomi 326-c Analysis Awed. 1986. 103 East Asian Economic Development or 316-101 Introductory Macroeconomics or 316-102 mtroductory Micro-economics.326-30 7 ECONOMIC POLICY DEBATES: PAST AND Contact Two 1-hour lectures and a 1-hour tutorial a week.PRESEN T (Second semester.) Coordinaton Dr G. WhitweU. Objectives: At the end of this course students should: understand Prerequisite: A pass in a second- or diird-year economic history die main trends in the economic development and the economic subjector 316-201 Macroeconomics or 316-202 Microeconomics. stnicturesof some key countries of South-East Asia, especiaUy since Contact Two 1-hour lectures and a 1-hour mtorial a week. World War Two; appreciate the main characteristics of the business (Second semester.) environment, including business institutions, business practices, Objectives: On completion of this subject, students should be able to: and the social and poUtical background influencing the business • Analyse a number of current economic poUcy debates from a environment be able to discuss the implications of the business historical and comparaiive perspective; environment for foreigners doing business in South-East Asia, with • Understand how and why economic ideas are, or have been, an emphasis on AustraUan perspectives; be able to explain the accepted or rejected as the basis for new poUcy approaches. historical background of key feamres ofthe business environment, current forces for change and the impUcations for Ukely future Content This subject considers avariety of contemporary Austral­ trends in the business environment, be able to critically exaniine ian economic policy debates—over such things as stabihsation explanations of the Soudi-East Asian business environment espe­ policy, deregulation, taxation reform, protection, and immigra­ cially the relationships between business cultures, and the social tion—and discusses them with reference to their historical context and poUtical systems and cultural traditions. (by considering similar debates which have occurred in the past) Content Economic and commercial practices in Soudi-East Asia, and international context (by discussing similar debates which have strucmred around AustraUan experience in Asia in the recent past, occurred, orare occurring, abroad). The subject isalso concerned but with emphasis on an understanding of business practices and with the poUtical power of economic ideas. It seeks to explain why the economic environment The main focus wiU be upon Malaysia, some economic ideas acquire poUtical influence whue others do Thailand and Indonesia, but comparisons with other South-East not, the conditions vvhich are necessary for ideas to become the Asian countries wiU be included. Issues may include: the legacies basis for new poUcy approaches, and the mechanisms by which of coloniaUsm, modernisation of traditional agriculture, interper­ economic ideas become accepted and implemented by govern­ sonal relations in economic organisations, government and the ments. This involves, among other things, an examination of the economy including Malaysia's 'New Economic Policy", education growth of economics as aprofession and die different ways in which and development, reUgion and the economy, bureaucratic cornip- academic and government economists interact tion, labour relations, cross cidtural perspectives. Assessment An essay of up to 3000words (40 per cent). A 2-hou r end-of-semester examination (60 per cent).

237 Tlx University ofMelbourne Handbook 1994 Volume 3

326-308 ECONOMIC PROBLEMS IN HISTORICAL 326-425 DEVELOPMENT OF CAPITAL MARKETS, PERSPECTIVE BANKS AND BUSINESS Coordinator: Professor S. Nicholas Coordinator. Associate Professor D T Merrett. Prerequisite: A pass in a second or third year economic history subject Prerequisite: Entry into the honours program in economic or3l6-201 Nlacroecorx)fnicsor3l6-202 iMicrcMXxxiomics history or a combined honours program including economic Contact: Three hairs a week of lecnires/serriinars (Firstsemester). history, a postgraduate diploma or a masters program in the Objectives: To provide economics students with a long run Faculty. perspective on current economic problems. To illustrate the Contact A 2-hour weekly seminar over a semester (First semes­ importance of context (initial conditions) and structure (con­ ter.) straints) in analysing and understanding current economic prob­ Objectives: To achieve an understanding of the dynamic interde­ lems. To apply microeconomic and macroeconomic theory and pendence behveen capital markets and financial intermediaries analysis to the historical roots of current economic problems. To and die provision of credit and capital formation in an international widen and broaden the way economics studenLs think about the andAustraUan context overthc long mn.-Toachiev'can understand­ economy and society by studying real-world economic problems. ing of the evolving relationship behveen die banking sector and Content This is a thematic subject which identifies current businesses in an international and Austrahan context in an histori­ economic problems wiiich have occurred in die past. Topics cal context. covered include: die incidence, length and causes of unemploy­ Content Topics studied vvill include the evolving structures of ment in the 1990s and die 1930s; the international debt crisis of the capital markets in Australia and overseas; die evolution of instru­ 1980s, 1920s and the nineteenth century, issues in economic ments traded in capital markets; changes in the degree of integra­ growth such as the rise of die West and the lag of die" rest and why" tion behveen die world's capital markets over timef the changing mature economics grow so slowly, bank failures in the 1980s, pattern of business finance in Austraha; government regulation of 1930s and 1890s depressions; technical regimes and path dqiend- capital markets, and the form this regulation has taken over time. ency, international trade blocs including ASEAN, US-Canada Free Assessment Written work not exceeding 4000 words (30 per Trade Area and the Atlantic economy in the eigteenth century; cent) and a 3-hour examination al end of semester (70 per cent). booming sector models in Australia in the 1860s-70s and 1850s; the 'closedness' of Japanese economy to Western imports. 326-426 ADVANCED STUDIES IN SOUTH-EAST Assessment Written work not exceeding 3000 words (40%) and ASIAN ECONOMIC DEVELOPMENT a 2-hour examination at the end of the semester(60%). Not available in 1994. Coordinaton To be advised. HONOURS DEGREE Prerequisite: Entry into the honours program in economic 326-424 THE EUROPEAN COMMUNITY: ECONOMIC history or a combined honours program including economic CHANGE AND INTEGRATION history, a postgraduate diploma or a masters program in the Coordinaton Dr G. Whitwell Faculty. Prerequisite: Entry into the honours programme in economic Contact Seminars, lectures and tutorials averaging diree hours history or a combined honours programme including economic per week dirougliout die semester. history, a postgraduate diploma or a master's.programme in the Objectives: To provide a course of advanced studies of the faculty. economic and commercial instimtions and experiences of selected Contact Three hours a vveek of seminars (Secondsemester). South-East Asian societies. The empiiasis vvill be on explaining Objectives: On completion ofthis subject, students should be able to: economic performance, especially die contrasts behveen underde­ velopment in what can be called the colonial era and the rapid pace • understand why the European community was formed and of change since the Second World War. how and why its membership has become progressively Content Advanced snidies of selected topics on the economic enlarged; experience of South-East Asian countries especially Thailand Ma­ • understand the economic policy-making process within the laysia and Indonesia Topics smdied may mclude: the role of EC and its limitations and constraints; government in economic policy since World War Two; pohtical • understand the impact on constituent economies of a range systems and their economic consequences; changing stmctures of of economic policies; the economies; the role of foreign investment; the role of ethnic • understand the problems in achieving economic integration; rninorities especially the ethnic Chinese; the experience and lega­ and cies of colonialism, with a comparison of the poUcies of different • apply microeconomic and macroeconomic theory and European powers in the region; contrast; with the non-colonial past analysis to the economic policies ofthe European Commu­ of Thailand; gender and economic development nity. . Assessment Essays and class assignments totalling not more dian Content This subject focuses on the estabhshment of, and subse­ 4000 words (40 per cent of final assessment). One three-hour quent changes in, the European Community (EC) and its constitu­ examination at die end of the semester (60 per cent of final ent economies. It analyses the evolution and effects of a variety of assessment). EC policies, mcluding industrial and competition policies, the common agricuimral pohcy, regional policies, moneiary arrange­ 326-466 ECONOMIC HISTORY RESEARCH ESSAY ments, social policies, and trade policies. Attention is given to Coordinator: Professor S.J. Nicholas. analysing the difficulties which have been, and continue to be, Prerequisite: Entry into die honours program in economic encountered in integrating the various EC economies. history or a combined honours program mcludmg . econonuc Assessment Written work not exceeding4000 words (40%) and history, a postgraduate diploma or a masters program in the a 2-hour exanunation at the end of the semester (60%). Faculty.

238 Faculty of Economics and Commerce Management and Industrial Relations

Contact (Double semester) long term changes in demand patterns for differing sets of goods Objectives: To introduce students to issues invoked in research and services; the role of markets in ccKirdiriating economic strategies invoking selection of research topic, literature search activities within Austraha and between Austraha and the interna­ and data collection. To develop skills in time management of tional economy; the role ofthe government in the growth process; research and report writing, to achieve a suitable standard of report and the relatively poor growth performance of the Austrahan writing in terms of analysis, structure and style, including biblio­ economy in the long run. graphic standards. Assessment Written work not exceeding 4000 words (30 per Content The subject includes no formal class work. The research cent) and a 3-hour examination at end of semester (70 per cent). essay, which should be between 10 000 and 15 000 words, is to bNOTEe : Required for fourth-year honours, masters preliminary and on a topic approved by the Head ofthe Department of Economic diploma students. History. Assessment The essay itself is examined. 326- 480 SPECIAL TOPICS IN ECONOMIC HISTORY Coordinator To be advised. 326-470 THEORY AND METHOD IN THE SOCIAL Prerequisite: Entry into the honours program in economic SCIENCES history or a combined honours program including economic Coordinators: Professor SJ. Nicholas. history, a postgraduate diploma or a masters program in the Prerequisite: Entry into the honours program in economic Facully. history or a combined honours program mcluding economic Contact Three hours a week of seminars for one semester. history, a postgraduate diploma or a masters program in the Objectives: To achieve an understanding of the advanced fields in Faculty. economic history, including their historiography, methodologies Contact One 2-hour seminar a week. (First semester.) and current debates. Objectives: To provide students with a basis of understanding of Content Special topics will be offered from time to time to allow why and how knowledge is produced, in economics and economic members of staff and visitors to teach a subject linked to their history. To investigate the ways and means by which some current research interests. economic theories and beliefs acquire scientific legitimacy, while Assessment Writtenwork not e.xceeding4,000words(40%0and others do not To investigate the role of values such as political and a 3-hour examination at die end of the semester (60%). ethical beliefs, in economics and economic history. To critically evaluate recent methodological trends in economics, particularly diose relating to mathematisation and to feminist critiques of the Management and Industrial Relations social sciences. ORDINARY DEGREE Content The course explores basic issues in the production and stnicture of knowledge in the social sciences, with particular FIRST YEAR reference to economics and economic history. The different methods and theories of economists over time will be examined. 327- 101 MANAGEMENT Criticisms and alternatives to 'mainstream' approaches will be Coordinator Professor S. Deery considered. Contemporary critical issues will be raised, among Contact Two 1 -hour lecmres and one 1 -hour mtorial per week. diem the issue of whether economics is, or can be, value-free, (Second semester.) whether it is scientific, and whether it is gender-biased. Objectives: On completion of this subject smdents should be able Assessment Written work not exceeding 4000 words (40 per to: cent); one 3-hour examination (60 per cent). • understand the nature of die managerial role in the modern Prescribed texts: Katouzian H Ideology and Method in Social business enterprise; Science 1980, Glass J and Johnson VI Economics, Progression, • identify the environmental and organisational factors that Stagnation, Degeneration? 1989 or Pheby ) Methodology and affect management strategy; Economics 1988. • distinguish betw een the various analytical frameworks used NOTE: Required for fourth-year honours, masters preh'minaryand to classify organisational stnictures; diploma studenis. • critically assess the means by which organisations manage employ ee relations; 326-471 AUSTRALIAN ECONOMY IN THE LONG RUN • understand the principles of Japanese management Coordinator Dr D.J. Oxley. practices. Prerequisite: Entry into the honours program in economic Content The course will examine the role of management in history or a combined honours program mcluding economic organisations by focusing on the three main organisational func­ history, a postgraduate diploma or a masters program in the tions: Managing strategy, managing strucmre and managing em­ Faculiy. ployee behaviour. It will analyse the concept of business strategy Contact A 2-hour weekly seminar. (Secondsemester.) and the process of strategic planning and evaluate different ex- Objectives: To achieve an understanding of the process of eco­ planatory models of organisational strucmre. The course will also nomic change in the Austrahan economy over the period of assess the approaches taken to the management of employees by European setdement To achieve an understanding of the role examining scientific management, the human relations movement, played by factor inputs, and the technologies and organisational labour process theory and the flexible specialisation model of structures through which those inputs were transformed into goods production. The concepts and foundations of Japanese manage­ and services, and the distribution of income. ment practices will also be covered in the context of international Content Topics to be studied will include the changing pattern of organisational and workplace change. theresourcebase; the growth of the skill-baseoftheworkforce; the Assessment One 2-hour end-of-semester exarnination (70%) sources of funding and the sectoral patterns of capital formation; and an esay of up to 2000 words (30%).

239 Tlx University of Melbourne Handbook 1994 Volume 3

SECOND YEAR Assessment A 2-hour final examination (60 percent) and a 1500 to 2000-word assignment (40 per cent). 327-201 ORGANISATIONAL BEHAVIOUR Prescribed texts: Samson DXManufacturing/OperationsStrat- Coordinator Dr M. Olekalns. egy 1991 Prentice-Hall. Bufla E S and Sanin R K Modern Produc- Contact Two 1 -hour lectures and one 1 -hour tutorial per tion/OperationsManagemenweek. t 19878th editionJohnWUey.Samson (Firstsemester.) D A Management for Engineers 1989 Longman Cheshire. Objectives: On completion ofthis subject students should: • understand the basic theories and models that describe 327-209 HUMAN RESOURCE MANAGEMENT organisational behaviour; Coordinator Dr R Iverson. • have some understanding of the manner in wiiich research is Prerequisites: introductory Macroeconomics and mtroductory conducted in each area of organisational behaviour, Microeconomics. • be able to apply major theories and models to organisational Contact Seminars, or lectures and mtorials, totalhng three hours problems, as presented in case studies; aweek. (Secondsemester.) • be able to suggest potential solutions to such problems, Objectives: On completion of this subject students should be able based on theories and models in organisational behaviour. to: Content This subject will provide an introduction to basic indi­ • understand die major functions and activities involved in vidual and group processes, as they affect people in organisations. human resource management; Majortheoriesand modelsin keyareas oforganisational behaviour • comprehend how human resources Gin be managed will be examined: basic social processes (social cognition, group effectively for the benefit of the individual, organisation and dynamics), motivation, stress, communication, decision-making,- - - society, - — conflict, leadership, power and politics, and change management • identify the relationship of the human resource and other Tutorials will emphasise die application of dieories, through die use management functions in organisations. of simulations and case study analysis. Content Planning and forecasting human resource requirements. Assessment A 2-hour end-of-semester examination (60 per Recruitment and selection. Remuneration and reward systems. cent) and a 1500 to 2000-word assignment (40 per cent). Appraisal, evaluation and employee motivation. Design and imple­ mentation of employee tnuning and development programs. Qual­ 327-202 PRINCIPLES OF ORGANISATION ity of worklife and productivity improvement programs. Managing Coordinator Dr M. Olekalns. effective working relationships. Prerequisite: Organisational liehaviour or its equivalent. Assessment A 2-hour examination (70 per cent) and assign­ Contact Two 1 -hour lectures and one 1 -hour tutorial per week. ments totalling 2000 words (30 per cent). (Secondsemester.) Prescribed text Schuler RS, DowlingPJ, SmartJ P and Huber VL, Objectives: On completion of diis subject students should: Human Resource Management in Australia (2nd ed.) Sydney • understand the application of a systems perspective lo Harper Educational. organisations; • be able to describe the range of organisational strucmres and THIRD YEAR . identify die detenninants of stnicture; 327-301 MARKETING I •. understand the relationship behveen organisational strucmre Coordinator Mr C. McLeod. and effectiveness; Contact Two 1-hour lectures and one 1-hour mtorial per week. • be able to describe how organisational systems and (First semester.) processes (e.g., power, culture, conflict) are related to Objectives: On completion ofthis subject, smdents shoidd be able organisational survival; to: • be able to apply major theories and models to organisational • understand the role of marketing in contemporary business problems, and, based on these, to suggest potential solutions management; to such problems. .• understand the major activities and functions that comprise Content Organisation design: the component parts of organisa­ marketing management; tions and how diey. function; how various factors such as size, • understand the fundamental components involved in the environment, technology, organisational strategy and power affect creation and implementation of a marketing plan. the operation of organisations; the types of organisation strucmre, Prerequisite: 316-129 Business Statistics or 316-130 Quantiui- how they work and what situations they are best for, and some key dve Methods 1. issues in managing organisations, such as societal change, conflict, culmre, organisational change and evolution. Content Tlie basic framework and concepts of marketing. The Assessment A 2rhour end-of-semester examination (60 per marketing environment, .role widiin the firm, segmentation and cent) and a 1500 to 3000-word essay (40 per cent). targeting, marketing decision framework, market research, con­ sumer behaviour, industrial buying behaviour, product planning, 327-203 MANAGING COMPANY OPERATIONS product management and new-product development, promotion, Not available in 1994 personal selling and mass selling. Coordinator To be advised. Assessment A 2-hour paper (60 per cent) and a class assignment Prerequisites: 327-201 Organisational Behaviour and 316-129 of up to 2500 words (40 per cent). Business Statistics or 316-130 Quantitative Methods 1. 327-302 MARKETING II Contact A l-hourlecmrcanda2-hourseminarAvorkshopavveek. Coordinator Mr C. McLeod. Content The operations function within manufacturing and serv­ Prerequisite: Marketing I. ice organisations. Strategic and operational issues; concepts and Contact Tw o 1-hour lectures and one 1-hour mtorial per week. techniques used in operations management. All aspects in the (Second semester.) provision of a product or service.

240 Faculty of Economics and Commerce Management and Industrial Relations

Objectives: On completion ofthis subject, students should be able union ideology and industrial relations; pubUc employment bar­ to: gaining; economic strategy and industrial relations. • understand the basic processes that influence the develop­ Assessment A 2-hour examination (80 per cent) and class ment of corporate and marketing strategies; assignments of up to 3000 words (20 per cent). • understand how to evaluate competitive and environmental forces; 327-332 INDUSTRIAL RELATIONS POLICY • understand the analytical methods used to create marketing Coordinaton DrJ Benson. strategies in the modern business environment Pre- or Corequisite: 316-308 Industrial Relations. Content The strategic view of marketing; relating the marketing Contact Three hours of serninars or lecmres and mtorials a week process to overall corporate goals. The strategic market planning for one semester. (Secondsemester.) process, customer, industry and environmental analysis, portfoho Objectives: On completion of this subject smdents should be: analysis, experience curves, competitive strategies, evaluation and • aware of developments in pubUc poUcy in the area of control. industrial relations and the role of mterest groups and their Assessment A 2-hour paper (60 per cent) and class assignments ideologies in determining pohcy outcomes; totdling 4000 words (40 per cent). • able to evaluate critically the usefulness and limitations of theories of decision making and poUcy formation; 327-308 INDUSTRIAL RELATIONS • aware of the impact of poUcy programs on workplace Coordinaton Dr G. Griffin. industrial relations. Contact Two 1 -hour lectures and a 1 -hour mtorial a week.Conten (First t Theoretical bases tmderpinning poUcy formulations by and second semester.) groups (frames of reference, ideology, historical environment, Objectives: On completion of diis subject smdents should be able socioeconomic influences and behaviour etc.). The basis, process to: of formulation and implementation of poUcy by instimtions in the • understand the role of unions, employers, tribunals and the AustraUan industrial relations systems mcluding mdividual unions state in the Austrahan industrial relations system; (mcluding a comparison of the influences of variations in union • extend their knowledge of industrial relations via the structure and decision-making apparams); trade union central undirected study of books and articles dealing with theory organisatioas; the smaU company, the huge corporation; the multi­ and pohcy in this area; national corporation; employer associations; government and • criticaliy evahrate contemporary pohcy debates and government agencies; the media The influence ofthe process and proposals to change the existing system of industrial stiiictu re of poUcy formulation on industrial relations behaviour, in relations. selected examples, including bargaining strategies; pubUc stances and private behaviour, strike action and control; internal and Content Industrial relations systems - theory and reality. Indus­ external administrative control of instimtions, e.g. unions, em­ tiial conflict - nature and significance. Trade unions -namre and ployer organisations; pragmatism or ideology as operative behav­ significance; origin, development, stnicture, government and ac­ ioural determinants. tivities. Settlement of industrial disputes -the law and industrial conflict, mediation, conciliation and arbitration; coUective bargain­ Assessment A 2-hour examination (80 per cent) and class ing and productivity bargaining; bargaining environment Indus­ assignments of up to 3000 words (20 per cent). trial democracy - concepts and issues. Current issues with special reference to AustraUa, and international comparisons where ap­ HONOURS DEGREE propriate. 327-401 ADVANCED ORGANISATIONAL BEHAVIOUR Assessment A 2-hour examination (80 per cent) and a class Coordinaton Dr M. Olekalns assignment of up to 3000 words (20 per cent). Prerequisites: Entry to the honours year. Prescribed text Deery S and Plowman DAustralian Industrial Contact Classes totaUing 3 hours per week throughout the Relations 3rd edition McGraw-IIiU. semester. (Secondsemester.) 327-331 COMPARATIVE INDUSTRIAL RELATIONS Objectives: On completion ofthis subject smdents should: • understand the major theories in organisational behaviour Coordinaton Dr G Griffin. and be able to comment on their appUcations and limita­ Pre- or Corequisite: 316-308 Industrial Relations. tions; Contact Three hours of seminars or lectures and mtorials a week. • be able to cite the major empirical work from which such (Firstsemester.) theories developed; Objectiv es: On completion of this subject students should be able to: • be able to comment criticaUy on current research related to • extend their knowledge of industrial relations in various these theories; and industrialised economies via the undirected study of books and articles dealing with theory and policy in this area; • based on theory and research, be able to describe a programme aimed at deaUng with specific organisational • understand why different systems of industrial relations exist problems. in different countries; Content This course wiU expand smdents' knowledge of major • draw on their knowledge to criticaUy evaluate proposals to theories in areas of Organisational Behaviour by exarnining the change the Australian system of industrial relatioas. empirical foundations of these theories, as weU as more current Content Methodology and role of comparative smdies. The research in these areas. Topics covered in the course wiU mclude development and operation of industrial relations processes and occupational stress, motivation, alternative dispute resolution, poUcies in selected overseas industrial relations systems. Topics of organisational communication, change management and leader­ contemporary relevance to the AustraUan system of industrial ship. Each topic area will be considered in terms of its relevance relations vvill be studied rather than an exhaustive examination of to the workplace, particularly how it may be used to deal with each overseas system; topics may include dispute resolution; organisational behavioural problems. consideration ofthe pubUc interest; plant level industrial relations;

241 Volume 3

Assessment: One 3-hour end-of-semester examination (80%) Content General and discipline-based theories of industrial rela­ and assignments totalling no more than 2000 words (20%). tions. The employment relationship, idiosyncratic exchange and models of management control. Employee turnover and absentee­ 327-402 ADVANCED HUMAN RESOURCE ism: an individual and organisational analysis. Business strategies, MANAGEMENT product life cycles and effects on the industrial relations require­ Coordinator Dr R. Iverson ments of management Theories of union membership and trade Prerequisite: Entry to the honours year. union purpose and the impact of unioas on wages and productivity. Contact: Classes totalling 3 hours each week during tlie semester. The industrial relations of wage.fixation, role of die Accord and (Firstsemester.) . pressures for enterprise bargaining. Objectives: On completion ofthe subject students should be able Assessment A 3-hour examination (80 per cent) and an essay of to understand:. approximately 2000 words (20 per cent).. • the interdependent relationships between the functions and activities of human resource management; Mathematics and Mathematical • the different strategies of human resource management; • how the management of human resources can be integrated Sciences into business strategies. 617-160 SCIENTIFIC PROGRAMMING AND Content The course will examine tlie theoretical and practical STATISTICS apphcation of the five basic functions of Human Resource Manage­ Coordinator Professor A J Guttmann. ment: planning and. forecasting human resource requirements; Contact 39 lectures (three a week); 12 x 1-hour tutorials; 24 -recruitment and selection; appraisal, evaluation and employee - hours practical (two hours a week); 12 hours project work. motivation; designing and implementing employee training and development programmes; improving quahty of life and productiv­ (Offered in both semesters.) ity programmes, and improving the physical work environment; Objectives: This subject is designed to introduce students to the and managing effective working relationships. Tlie relationships use of computers, a programming language, scientific program­ between these functioas and strategic human resource manage­ ming and elementary techniques of numerical analysis. It also ment are addressed, as well as how these can be incorporated intoprovide s a general introduction to statistical inference. Tlie subject business strategies. provides students with essential techniques for a career in science. Assessment One 3-hour end-of-semester examination (80%) Content Introduction to programming: algorithms, simple data and assignments totalling no more lhan 2,000 words (20%). types, assignment, conditionais, iteration, functions and proce­ dures, complex data types, array processing. Numerical methods: 327-403 MANAGEMENT AND INDUSTRIAL number representation, errors, numerical integration, solution of RELATIONS RESEARCH ESSAY linear and nonlinear equations. Statistics: data analysis, elementary Prerequisite: Entry into the honours programme in Management distribution dieory: binomial and normal distributions, random and industrial Relations. sampling, population parameters and sample statistics, estimation, Objectives: On completion ofthis subject students should be able confidence intervals and hypodiesis testing based on the binomial to: and normal distributions; introduction to distribution-free medi­ • demonstrate an abdity to formulate a research question with ods, an introduction to statistical package programs. testable propositions; Assessment Project work must be completed as required. Writ­ • apply appropriate research tecliniques to a contemporary ten assignments of up to 26 pages; up to diree hours of written end- management or industrial relations issue; . of-semester examination. • demonstrate sound analytical and written skills; FTescribed texts: To be advised at first lecture. • • the contribution of human resource management for the Note: Students may not gain credit for both Mathematical Sciences effectiveness of organisations. 617-160 and any of 433-101,617-152,617-170 or 619-100. Content The research topic must be approved by the Head of the 617-170 DISCRETE MATHEMATICS AND STATISTICS Department of Management and Industrial Relations. The research Coordinaton Professor C F Miller. essay should not exceed 15,000 words. Contact 39 lecmres (three a week); 12 hours laboratory classes; Assessment The essay itself is examined. It is due for submission 20 x 1-hour tutorial classes. (Firstsemester.) by the end of second semester. Objectives: Tliis subject is designed to introduce smdents to 327-465 INDUSTRIAL RELATIONS discrete mathematical methods and methods of mathematical proof,' techniques vvhich are useful in mathematics, computer Coordinators: Professor S Deery. science and statistics. It also provides a general mtroduction to Prerequisite: Entry to the Honours year. statistical inference. Contact Three hours a week of serninars. (First semester.)Conten t Combinatorics: graphs and trees, paths, counting. Set Objectives: On completion ofthis subject students should be able theory, functions, orderings, equivalence relations, cardinality. to: Logic: propositional calculus, quantifiers, methods of proof. Induc­ • understand the main conceptual and theoretical elements of tion and recursion. Statistics: daia analysis, elementary distribution industrial relations; theory binomial and normal distributions, random sampling, • identify the factors that affect the distinctive character of population parameters and sample statistics, estimation, confi­ .. employer-employee relations in Austraha; dence mtervals and hypothesis testing based on the bmomial and • critically evaluate contemporary pohcy debates in the areas normal distributions, introduction to distribution-free methods, an of wage determination and labour market flexibility. introduction to statistical package programs. Assessment Written assignments of up to 26 pages in'total and up to three hours of written examination.

242 Faculty of Economics and Commerce Mathematics and Mathematical Sciences

Prescribed texts: To be advised at first lecture. 618-102 MATHEMATICS 1B Note: Students may not gain credit for both Mathematical Sciences Prerequisite: 618-101 Mathematics IA 617- 170 or6l7-152,617-160 or 619-100. Contact 39 lecmres (three a week); 13 x 1-hour mtorials; 39 hours problem solving. (Second semester, available in first 618- 100 MATHEMATICS 1 semester of following year as 618-200) Contact 39 lectures (three a week); 13 x 1-hour tutorials; 39 Objectives: This subject provides an introduction to convergence, hours problem solving. (Offered in both semesters.) linear algebra and functions of several variables. In addition, it Objectives: This subject consolidates and extends madiematical provides an mtroduction to abstract strucmres in mathematics and skills and concepts acquired at school, and in so doing provides a lays a foundation for the smdy of analysis. This subject is recom­ foundation for more serious smdies in mathematics. Upon mended for all smdents intending to smdy 200-level mathematical successful completion of this subject smdents should have a sciences workmg knowledge of vectors and matrices, know how to solve a system of hnear equations, know the properties of the basic Content Sequences and series: convergence and divergence of functions of calculus, be able to differentiate and integrate, and be sequences and series, tests for convergence, Taylor's theorem and able to solve simple first order cUfferential equations. series representation of elementary functions. Linear algebra: Content Vectors and matrices: matrices, row operations, solution vector spaces in general, axioms, linear independence, basis sets, of lmear equations, inverses, vectors, scalar product, equations of dimensionahty, R" and C", inner products, linear transformations, lines and planes. Calculus: functions of one real variable, differen­ matrix of a linear transformation, change of basis, rank, inverse, tiation and integration, maxima and minima, Taylor series, ap­ solution of linear equations, eigenvectors and eigenvalues, quadrics and conies, invariant subspaces, direct sums of subspaces, projec­ proximate integration, functions of several variables, contours, tion and idempotent matrices, factorisation of matrices and linear partial differentiation, errors, maxima and minima mcluding transformations, rotation matrices, diagonal, real-symmetric, Lagrange multipliers. Difference equations. Differential equations: Hernu'tian.umtaryandorthogonalmatrices. Multivariable calculus graaientfields,simplefirstorder,secondorderconstantcoeflicient Functions of several variables, level curves, heights; partial deriva­ equations by reduction of order, applications, numerical solutions. tives, commutation of mixed partial derivatives; total derivative, Assessment Written assignments of up to 26 pages in total and up gradient vector, di rectional derivatives and applications; chain rule; to diree hours of end-of-semester written examination. coordinate transformations, Jacobi matrix and determinant; hes­ NOTE: Smdents may not gain credit for both Mathematics 618-100 sian matrix, maxima and minima of functions of several variables; and 151 (or 141 or 151 passed in previous years). Credit cannot surface areas and volumes of sohds of revolution; mtroduction of be obtained for 618-100 if 618-101 has already been passed. double and triple integrals. 618-101 MATHEMATICS 1A Assessment Written assignments of up to 26 pages in total and up Contact 39 lecmres (three a week); 13 x 1-hour mtorials; 39 to three hours of end-of-semester written examination. hours problem solving. (Offered in both semesters) Prescribed texts: To be advised at first lecmre. Prerequisite: 618-100 Mathematics 1 or a satisfactory perform­ NOTE (i) This subject is recommended for all smdents ance in the Exemption TesL mtending to smdy 200-level mathematical sciences, Objectives: This subject is designed to consolidate students' (ii) Credit cannot be obtained for both 618-102 and knowledge of calculus of functions of one variable and to mtroduce 618-200. them to complex numbers, vectors, and three-dimensional geom­ 618-151 MATHEMATICS FOR ECONOMICS etry. While the student will recognise many of the topics, a much Coordinator Dr A M Russell. deeper understanding and a greater mastery of techniques is expected here, providing both a consolidation of previously ac­ Contact 39 lecmres (three a week); 13 x 1-hour mtorials; 39 quired knowledge and a foundation for subsequent smdies. Sm­ hours problem solving. (Firstsemester) dents are expected to dev ote a considerable amount of time to the Objectives: This subject is designed to mtroduce smdents to basic solution of relevant mathematical problems. This subject is a mathematical techniques in linear algebra and differential and prerequisite for most second year subjects in Mathematical Sci­ integral calculus. In particular it seeks to demonstrate the applica­ ences. bility of mathematics in Economics and the Social Sciences. Content Foundations: sets, integers, mathematical induction, real Content Vectors and matrices: mtroduction to vectors: scalar, numbers, complex numbers, polar form, de Moivre's theorem, vector, triple products, equations of lines, planes, elementary complex exponential. Calculus: functions of one real variable properties of matrices and determinants, row operations on matri­ (including limits and continuity), derivatives, curve sketching, ces, solution of linear equations, matrix inverse. Calculus and its maxima and minima, curvature, antiderivatives and the definite apphcations: functions and their inverses, differentiation, linear integral, trigonometric functions and their inverses, logarithm, approximation, marginahsm, elasticity, maxima and rninima, con­ exponential functions, hyperbolic functions and their inverses, cavity, mtfigration, area, consumer and producer surplus, approxi­ systematic integration, approximate integration, apphcations of mate integration, introduction to differential equations, Taylor integration, areas, arc length. Vectors and linear equations: vectors polynomials, functions of several variables, level curves, chain in three-dimensional space, dot and cross products, triple prod­ rules, Lagrange multipliers, Jacobi and Hessian matrices. ucts, determinants, hnear dependence, equations of lines and Assessment Written assignments of up to 26 pages in total and up planes, geometrical apphcations, bases and coordinates, dimen­ to three hours of end-of-semester written examination. sion, geometrical applications, differentiation of vector functions of Prescribed texts: To be advised at first lecmre. a real variable, solution of simultaneous linear equations, row- Note: Smdents may not gain credit for both Mathematics 618-151 reduction, geometrical interpretation. and 618-100; furthermore, credit cannot be obtained for 618-151 Assessment Written assignments of up to 26 pages in total and up if 618-101 has already been passed. Smdents who desire fuller to three hours of end-of-semester written examination. mtroduction to tertiary mathematics should consider taking a Prescribed texts: To be advised at first lecture. sequential subject 617-152 or 618-101.

243 The University ofMelbourne Handbook 1994 Volume 3

617-152 MATHEMATICAL SCIENCES FOR ECONOMICS Coordinaton Dr A M RusseU. Prerequisite: Mathematics 618-100,151 or 101. Contact 39 lectures (three a week); 13 x 1-hour Uitorials; 39 hours problem solving. (Secondsemester) Objectives: This subject is a sequel to 618-151 and provides the student with statistical and mathematical skills for solving problems in economics and the social sciences. It provides a firm foundation for later year quantitative studies ih these disciplines. Content Complex numbers: De Moivre's theorem, complex expo­ nential. Differential and difference'equations: first-order differen­ tial equations and first and-second order difference equations. Sequences and seepies and appUcations to finance, annuities, net present value, internal rate of return. linear prograniming: tinear programming, duatity, simplex method. Statistics: data analysis, elementary distribution theory: binomial and normal distributions, random sampling, population parameters and sample statistics, estimation, confidence intervals and hypothesis testing based on the binomial and normal distnbutions, introduction to distribution- free meihods, an introduction to statistical package programmes. Assessment Written assignments of up to 26 pages in total and up to three hours of end-of-semester written examination. Prescribed texts: To be advised at first lecture. NOTE: Students may not gain credit for both Mathematical Sciences 6l7-152andanyof6l8-102;6l8-200,6l7-l60,6l7-170,or6l9- 100.

244

Library Digitised Collections

Author/s: The University of Melbourne

Title: Handbook: Faculty of Economics and Commerce 1994

Date: 1994

Persistent Link: http://hdl.handle.net/11343/129059