Complementary Field/Specialization: Tensions in Economics

Objectives

The complementary major “Areas of Tension in Economics (Spannungsfelder der Ökonoie)” is designed for students who wish to systematically understand economic relationships, contextualize them theoretically, and analyze them using empirical methods. It places particular emphasis on a solid foundation in microeconomics, macroeconomics, and econometrics.

The focus is on central questions in microeconomics, such as the behavior of households, firms, and the government, as well as the functioning and failure of markets. In macroeconomics, macroeconomic developments such as growth, the business cycle, institutions, and economic policy frameworks are addressed. In addition, fundamental econometric methods are taught to enable students to understand, interpret, and critically evaluate economic data and empirical studies.

Building on this foundation, the complementary subject allows for an application-oriented in-depth study of a variety of topics. Depending on the semester, the focus may be on, for example, international economics, industrial economics, labor economics, money and the business cycle, macroeconomics and digitalization, institutional economics, or economics of distribution. In this way, the complementary subject combines a solid foundation in economics with the opportunity to explore current economic policy issues in depth.

Upon completion of the complementary subject, students will be able to

•    understand and critically reflect core areas of microeconomic and macroeconomic theory as well as the most important econometric methods

•    describe legal and institutional frameworks and the role of the government in various markets, and analyze them in an international context

•   understand the behavior of economic agents (households, firms, and the public sector) under various legal and institutional frameworks and to recognize the consequences of this behavior for society

•    interpret the results of econometric analyses appropriately

•   apply the acquired skills to address current economic policy issues.

Structure and Content

The complementary major comprises a total of four courses:

Sequencing

There is no mandatory sequence for the courses in this complementary subject. All courses I, II, III, and IV are offered every semester. However, we recommend taking the application-oriented course IV only after completing at least some of the foundational courses I through III.

Course Contents

•    Course I: Advanced Microeconomics (4 ECTS, 2 SWS)

This course covers consumer theory as well as advanced topics in microeconomics: general equilibrium, asymmetric information, externalities and public goods, and behavioral economics. The focus is on economic intuitions and an overview of why markets fail and what measures can be taken.

Upon completion of the course, students will have gained key insights into how microeconomics can be used to analyze policy-relevant questions and problems. They will be able to understand:

• how different markets interact with one another in general equilibrium models;

• how violations of the assumption of a perfect market (i.e., market failure) influence market outcomes and what options a social planner has to intervene.

The analytical and methodological framework acquired in this course can be used to solve various microeconomic problems.

•    Course II: Advanced Macroeconomics (4 ECTS, 2 SWS)

This course covers the fundamental concepts of key approaches to growth theory. By the end of the course, students should be able to understand neoclassical growth theory (Solow) and endogenous growth theory (Romer) and apply them in the appropriate context. In addition, students will grasp the role of institutions in growth and development and be able to interpret these relationships.

•    Course III: Econometrics (4 ECTS, 2 SWS)

This course covers the basic concepts of econometrics. The distinction between causality and correlation is examined. The course then focuses on the classical regression model. The underlying assumptions and resulting properties are explained in detail. The focus here is on the OLS estimation method and asymptotic tests. Finally, topics such as model selection, including the choice of functional form, model misspecification, the use of dummy variables, treatment effects, and dealing with heteroscedasticity are covered.

This course provides a foundation in the analysis of economic data using statistical methods based on linear regression models. Upon successful completion of the course, students should be able to both understand and critically analyze empirical studies that use these methods, as well as independently conduct their own data analyses.

•    Course IV: Special Areas of Economics (8 ECTS, 4 SWS)

Depending on the semester, there are different courses available from which you can choose. These courses focus on specific topics, such as international economics, industrial economics, the macroeconomics of digitalization, money and the business cycle, distribution theory and empirics, institutional economics, and labor market economics. To provide you with a wide range of options, some of these courses are offered in German, others only in English.

Prerequisites

The complementary subject “Areas of Tension in Economics” is available to students in the Business Administration, Business Informatics, and Economics–Environment–Politics tracks, as well as to students in the Bachelor’s program in Business Law, all under the 2023 curriculum.

Registration is subject to the general prerequisites for enrolling in a complementary course or specialization as specified in your respective curriculum.

For WISO 2023 (tracks in Business Administration, Business Informatics, and Economics–Environment–Politics), these are: STEOP, at least 20 ECTS from the CBK, including in any case Annual Financial Statements and Corporate Reports, Mathematics and Statistics, as well as the required track selection in the OSS.

For WIRE 2023, these are: STEOP, Statistics, Annual Financial Statements and Corporate Reports, and 2 elective courses worth 4 ECTS each in Business Administration, Mathematics, or Macroeconomics.

There are no other mandatory subject-specific prerequisites.

However, we recommend completing the VUE Microeconomics (or Microeconomics for Business Law) and the VUE Macroeconomics courses before beginning the complementary subject. The content of these courses provides an important foundation for further study of microeconomic and macroeconomic issues. In addition, a good or very good grade in microeconomics and/or macroeconomics can be an advantage if there is high demand in the admissions process.

Registration and Admission

The complementary subject can be started every semester. There are 60 spots available per semester.

Registration and placement take place as part of the central WU process for enrolling in specializations and complementary subjects. Please note the current deadlines and information in the Bachelor’s Guide. There, the term “specialization” is used as an umbrella term and also includes complementary subjects.

Admission takes place in several steps:

Step 1: Registration via my@WU and specification of preferences

Register for “ET – Einstieg für Komplementärfach/Spezialisierung: Spannungsfelder der Ökonomie” via LPIS (accessible through my@WU) within the designated registration period. As part of the registration process, you also have to indicate your preferences and specify how many specializations or complementary subjects you would like to start this semester.

Step 2: Admission Process for the Complementary Course

There is no admission test for the complementary subject “Areas of Tension in Economics”.

If the number of registrations exceeds the number of available spots, priority will initially be given to students who have already successfully completed the VUE Microeconomics (Microeconomics for Business Law) and/or the VUE Macroeconomics courses with a grade of “good” or “very good.” For the remaining spots, students will be ranked on a first-come, first-served basis, i.e., according to the date of registration.

Successful completion of these courses is therefore not an additional mandatory requirement for registration in the complementary subject, but it is recommended and may be advantageous in the event of high demand.

Step 3: Placement via MyMatch

Following the admissions process, placements are assigned centrally via MyMatch. This process takes into account the ranking from the admissions process for the complementary subject, your stated preferences, and available capacity.

The results will be announced centrally after the matching phase is complete. Please check your WU emails and the information in LPIS regularly. Those who have been assigned a spot will see the assessment “Participated successfully” in LPIS under “ET – Einstieg für Komplementärfach/Spezialisierung: Spannungsfelder der Ökonomie” in the “Grade List.”

Step 4: Mandatory Course Registration After Assignment

If you have been assigned a spot in the complementary subject via MyMatch, you must register for at least one course in the complementary subject during the designated registration period. You may register for Course I, Course II, Course III, or an elective Course IV.

Important: A spot on the waitlist does not count as an active registration. If you do not register for at least one eligible course by the deadline, your assigned spot will be forfeited. The coordinators of the complementary subject cannot subsequently assign or reallocate spots that become available. Any spots that become available will be filled centrally.