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Behavioural Economics:Accounting&Finance (ECON90062)

Graduate courseworkPoints: 12.5On Campus (Parkville)

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Year of offer2018
Subject levelGraduate coursework
Subject codeECON90062
Semester 2
FeesSubject EFTSL, Level, Discipline & Census Date

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

Intended learning outcomes

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

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

Generic skills

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

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

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

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

Last updated: 11 January 2018