Economics

Why Economics at Pembroke?
'**News: Pembroke College Economics students had outstanding examination results in 2011**'

Pembroke has a long and distinguished tradition in Economics. This dates back to John Maynard Keynes, who was the College's first Director of Studies in the subject. Spread over the three years of the Economics course there are around 15 to 18 undergraduates in residence at Pembroke, together with some research students working on MPhil or PhD degrees. There is a long tradition of a relatively international mix of both graduates and undergraduates in the subject at Pembroke, as well as occasional academic visitors from abroad. Both affiliated and mature students at the appropriate standard are admitted as undergraduates. Pembroke economists come from all types of secondary education.

The course

Known as the Economics 'Tripos', the undergraduate course normally lasts three years. In any one of the three years there are around 170 undergraduates on the course in Cambridge. Most of them follow the full three-year course, though some may join from other Triposes (or as 'affiliated students' coming from other universities) in the second year; and some may change to other Triposes after the first year.

Components
In the first year (Tripos Part I) all five component-areas of the course are compulsory: microeconomic and macroeconomic principles, maths and statistics, social and political theory, and economic history, each of which are examined in one paper.

In the second (Tripos Part IIA) students study microeconomics, macroeconomics and econometrics, as well as one of three options: mathematics for economists, development economics and labour economics.

In the third year (Tripos Part IIB) there are around fifteen options, ranging across specific economic theory and policy areas, from which two are chosen, as well as compulsory papers in microeconomics and macroeconomics, and an individual dissertation on a subject of the student's choice . Dissertation topics covered recently by Pembroke's final year students range from studying determinants of the male-female wage gap in the UK, to an econometric analysis of a possible bubble in the UK housing market, to pricing emission schemes for fighting global warming, to the evolution of the China-US trade relationship and its implications for global macroeconomic growth, to the recent global financial crisis.

See also the University's guide to the course, which gives the full syllabus of Part I.

What is distinctive about the course?
In Cambridge the subject matter is treated not as settled doctrine but as a set of analytical methods. Undergraduates are encouraged on any issue to explore the counterpoise to conventional wisdom (be it 'Keynesian', 'monetarist' or 'new classical', 'radical', or anything else); textbooks, as opposed to primary works or current articles, are recommended for reference rather than as course-work. Another distinctive element in the course is its emphasis on applied economics, i.e., getting undergraduates to become proficient at telling a clear story from statistical material. In almost any field the reflex is promoted of reaching automatically for facts and figures (starting from newspaper) to confront theory with evidence.

What skills does the course reward?
It is obviously useful to be able to articulate an argument formally and to write accurately; but it is equally an advantage to have the sort of boldness that readily changes the premises of an argument, or is not shy about transferring methods or conclusions across quite different disciplines or problems. A feel for orders of magnitude and an interest in current affairs are good too.

What does an Economics BA lead to?
Cambridge Economics graduates have for some years been at or near the top of the European league-table in terms of employment prospects. In a typical year, if they do not immediately continue into graduate or other academic work, they join management consultancies, investment or international banks, other financial institutions, accountancy, marketing, or industrial- management training schemes, the legal profession or the civil service (national or international), the media and research institutes or public interest lobbies. The course leads straightforwardly into graduate or business school abroad (though the latter is usually joined after two years' employment).

How much computing is involved?
From the first year onwards the quantitative component of the course benefits from familiarity with the University's various computing systems and databases; in the second year the examination involves use of standard software packages to prepare, as required work, an econometric project; and in the third year many dissertations involve sophisticated econometric techniques.

How is teaching in economics organised?
The instruction is divided roughly 40-60 between University lectures and College 'supervisions'. Lectures, which are mostly provided by the Economics Faculty, are generally large and formal, lasting 50 minutes each; undergraduates typically attend three lectures a day. The supervisions, organised in Colleges, are normally given by members of the Faculty and attended by undergraduates in groups of 2 or 3; they typically last up to an hour and a half, occurring twice a week. (For Mathematics and Statistics there are often somewhat larger classes.) Supervisions call for work prepared in advance, such as a 2,000 word essay, which draws on a week's suggested reading and on lectures; at the supervision issues arising from that work get discussed with the supervisor. At the end of each term supervisors report on the student's work they have supervised.

Teaching Fellows
The College has three members of the Faculty who are teaching fellows in the subject, with research specialisations which span the subject-matter of the Tripos: Dr Demosthenes Tambakis (macroeconomics and international economics), Dr Donald Robertson (statistics and econometrics) and Dr Jin-Hyuk Kim (microeconomics and industrial economics). The College is very fortunate to be able to provide all teaching of the three core Tripos areas (micro, macro and econometrics) in-house.

The College Library
The College Library contains a relatively high proportion of the works required for the core of the course (around 1,200 volumes), together with five of the main academic quarterly journals and standard works of reference such as the New Palgrave Dictionary. There are also direct on-line links to the Faculty of Economics Marshall Library's resources, including e-books, e-journals and on-line article searches, borrowing and data download facilities.

Some Pembroke professional economists:
S.N. Afriat (Ottawa), P.K. Bardhan (UCLA), M. de Cecco (Rome), P.A. David (Stanford), M.R.D.W. Foot (Bank of England), S.A. Marglin (Harvard), S.J. Nickell (Nuffield College, Oxford), M.V. Posner (European Science Foundation), G.v.G. Stevens (Federal Reserve), Dr Roger W Ferguson, Vice Chairman of the Federal Reserve, who has been made an Honorary Fellow.

The admissions process

For those applying to Pembroke College it is essential to have achieved an A-level advanced qualification in Mathematics or equivalent, and an A-level in Further Mathematics is also highly desirable. University economics can involve sophisticated mathematical solutions, and it often requires a thorough understanding of mathematical and statistical notation. Otherwise, there is no preferred combination, although an analytical subject (such as Economics, History or Law), a science subject (such as Physics or Chemistry) and an expositional subject (such as a language, Art or Music) are all useful. Overall, it is important not to have eyes that glaze over psychologically at the suggestion of symbols and quantities as, for a good degree result in Economics, learning and enjoying to formulate clear and precise arguments is of great value; and it becomes an integral part of one's active involvement in the subject-matter.

All applicants who are invited for interview will be asked to sit a one hour written test the evening before their interviews. No preparation for this test is required.

Is a prior qualification in economics necessary?
Although the answer is clearly 'no', it is true that at the start there is a distinct advantage in knowing something of the special language of the subject (e.g. 'marginal cost') and to be able to recognise some elementary but important propositions (e.g. that under certain precise conditions, 'price should equal marginal cost'). Those without such knowledge of the subject are urged to read widely in the gap between secondary education and university. It is also useful to have done something connected with the subject if a 'gap year' is taken before university. In any case it is an excellent idea to be reading the financial press, especially the Financial Times, or the Economist, before coming to interview.

Further enquiries should be emailed to Dr Demosthenes Tambakis at Pembroke.

See also the University Prospectus entry for Economics.

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