• Offered by Research School of Economics
  • ANU College ANU College of Business and Economics
  • Course subject Economics
  • Areas of interest Economics, Finance

The material in the pass course is extended in the honours lectures to a general equilibrium setting using the state-preference model of Arrow and Debreu. Also, the course examines the economics of insurance in the presence of asymmetric information where moral hazard and adverse selection problems arise. Reading: As for the pass course plus additional lecture handouts.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

In addition to the learning outcomes for the pass component of this course honours students will:

  • be introduced to the role played by assymetric information in insurance markets;
  • identify the effects of moral hazard and adverse selection in insurance markets;
  • examine the Modigliani-Miller financial policy irrelevance theorms in atwo-period Arrow-Debreu state preference model fo the capital market.

Other Information

See the course outline on the College courses page. Outlines are uploaded as they become available. 

Indicative Assessment

Two examinable tutorials will be held during the semester, they are both fully redeemable.  The first one, which can contribute 10 per cent to the final grade, will be held just prior to the mid-semester break, while the second one, which can contribute 15 per cent, will be completed just after the mid-semester break.  The dates will be set two weeks in advance and will be announced in lectures and posted on WATTLE.  A three (3) hour exam is held at the end of semester.

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Lectures and tutorials as for the pass course plus one additional honours lecture per week.

Requisite and Incompatibility

To enrol in this course you must have completed ECON2101/2111 Microeconomics 2 (P or H).

Preliminary Reading

Elton, E.J. and Gruber, M.J., Modern Portfolio Theory and Investment Analysis (5th edition), John Wiley and Sons, 1995
Hirschliefer, J., Investment, Interest, and Capital, Prentice Hall, 1970.


Tuition fees are for the academic year indicated at the top of the page.  

If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.

Student Contribution Band:
Unit value:
6 units

If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees.  Where there is a unit range displayed for this course, not all unit options below may be available.

6.00 0.12500
Domestic fee paying students
Year Fee
2015 $3414
International fee paying students
Year Fee
2015 $4146
Note: Please note that fee information is for current year only.

Offerings, Dates and Class Summary Links

The list of offerings for future years is indicative only.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.

Second Semester

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery Class Summary
9383 18 Jul 2016 29 Jul 2016 31 Aug 2016 28 Oct 2016 In Person N/A

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