The goal of the course is to introduce to students the basic theories and methods of modern economics, both microeconomics and macroeconomics. The microeconomics part covers the following topics: consumers and market demand, demand elasticity, firms and different competition conditions in markets, consumer surplus, producer surplus and welfare. The macroeconomics part discussed important topics in macroeconomics such as unemployment, inflation, economic growth and discusses basic theories of macroeconomics concerning the development of an economy in the short and long run.

The goal of the course is to introduce students to basic methods in mathematics and statistics used in economic analysis. The mathematics part covers the following topics: functions, differentiation, integration, maximization with and without constraints, series and sequences, and simple difference and differential equations. The statistics part covers the following topics: random variables, probability, distributions, mean, variance, covariance, correlation, law of large numbers, samples, hypothesis testing, point estimation, and interval estimation.

This course will familiarize students with the basic foundations of microeconomic theory and   how to apply that theory to analyse economic decision making, for both consumers and firms and organizations, and both in markets and the public sector. The topics cover both consumer and production theory, the different market structures, welfare economics, as well as analysing market changes and government intervention. In addition to the theoretical foundations of economic analysis, the course material will also encourage and engage students in discussion on applied microeconomics and students will be required to work on assignment/exercises.

This course covers the basic methodology of macroeconomics and trains students in applying this to analyse various economic phenomena. Main topics are long-term economic growth, optimal saving, dynamic optimization, sticky prices, credit rationing and market failure in financial markets, long-term unemployment and the natural rate of unemployment, short- and long-term fluctuations in employment and production.

All information on final theses you will find in Ugla:
https://ugla.hi.is/cms/milli.php?sid=4221

The topic of the master's thesis must be chosen after consulting the thesis advisor(s), who must be full-time faculty at the Faculty of  Economics. The thesis must be at least 30 credits.
The thesis must be submitted online no later than the specified dates that are announced before each graduation. Grades for a master's thesis are given by the thesis advisor(s) and an outside reader.

All information on final theses you will find in Ugla:
https://ugla.hi.is/cms/milli.php?sid=4221

The topic of the master's thesis must be chosen after consulting the thesis advisor(s), who must be full-time faculty at the Faculty of  Economics. The thesis must be at least 30 credits.
The thesis must be submitted online no later than the specified dates that are announced before each graduation. Grades for a master's thesis are given by the thesis advisor(s) and an outside reader.

Select topics from the BS course Finance II, but more in depth. Topics include cost of capital, evaluation and selection of financing alternatives for the long term and the short term, alternatives for the dividend policy and capital structure, bond issues, stock issues, credit rating, mergers and acquisitions, and financial restructuring. Corporate finance is discussed from the viewpoint of both the Chief Financial Officer, who needs to master both the practical and theoretical aspects of the position, as well as that of investors and creditors, who need to assess the credit rating and going concern.

The course will cover the main points of statistics and pricing in finance. Emphasis is placed on introducing students to the use of numerical and mathematical methods to analyze, price and obtain information about financial instruments. Emphasis is placed on real examples where students are trained to solve tasks similar to those they may have to solve in the workplace.

The statistical part of the course will cover time series analysis. There, models such as auto regressive models (e. Auto regressive model, AR model) and models with moving averages (e. Moving-average model, MA model) will be introduced to play. Also the combination of ARMA, ARIMA and SARIMA models. Finally, conditional variance models or ARCH and GARCH models will be reviewed.

In the pricing section, we will cover binomial trees, Wiener processes, Ito's auxiliary theorem, the Black-Scoles-Merton model and the pricing of stock and currency options.

The course will cover the main points of statistics and pricing in finance. Emphasis is placed on introducing students to the use of statistical and mathematical methods to analyze, price and obtain information about financial instruments. Emphasis is placed on real examples where students are trained to solve tasks similar to those they may have to solve in their jobs in the financial market.

In the statistical part of the course, ideas about continuous and sparse probability distributions, expected values, variance and standard deviation, confidence intervals, null hypotheses and linear regression analyses, both simple and multivariate, will be reviewed. The basic ideas of the Capital Asset Pricing Model (CAPM) will also be reviewed.

The pricing part of the course will deal with the pricing of futures contracts on shares, bonds and currency and interest rate swaps, the construction of interest rate curves, as well as the types and characteristics of options.

Labour economics seeks to understand the functioning of the market for wage labor. Supply and demand for labour, wage formation and employment are fundamental issues within labour economics. The course also discusses what determines wage distribution and the impact of labor market institutions on wages and employment.

The objective of this course is to familiarize students with the latest key theories in human resource management and that they gain understanding and proficiency in using key HRM theories. Theories of HRM are covered in detail and the goal is that students understand the importance of HRM as a field of study and as an important function within organizations. Key aspects of HRM will be covered and it is important that students familiarize themselves with the course concepts through lectures and discussion sessions where they will work on the solution of practical cases.

Industrial organization is a field of economics that studies the structure of and boundaries between firms and markets and the interactions of firms strategic behavior of firms. The study of industrial organization adds to the perfectly competitive model real-world frictions such as limited information, transaction costs, costs of adjusting prices, government actions, and barriers to entry by new firms into a market that may be associated with imperfect competition. It then considers how firms are organized and how they compete, and examines deviations from the model of perfect competition in exchanges between firms, and between firms and households. These deviations occur, for instance, because of oligopoly, monopoly, attempts to limit entry to markets, transaction costs, and incomplete information.

The course covers both the management of individual projects and the management of projects in an organization. Both theoretical and practical aspects will be covered. Students will gain a good understanding of the elements of project work and project management in business operations and the ability to manage individual projects. Students will learn the structure of the program, progress, and termination of projects. Students will also learn to use software and technology for project management. Students are introduced to projects in an international environment and Agile ideology. The student will be an emphasis on putting on project management in Icelandic business environment and use of information technology.

Please note, students must log in and purchase the book Project Management, The Managerial Process on the McGraw-Hill website. Further information can be found on the course's Canvas page.

The purpose of Cost benefit analysis is to facilitate social decision making. The purpose of the course in Cost benefit analysis is to introduce to the student the foundation of CBA. CBA is used in many applications where governmental agencies at all evels are involved. CBA is routinely used to assist in making decisions regarding highway projects, health-care projects and so on. CBA is also useful to evaluate projects involving environmental damage or renewal. Topics include: Conceptually correct measures of social surplus vs. measures actually used. Estimating consumer surplus, producer surplus, and government revenue (i.e., social surplus) in primary and secondary markets, the social discount rate, uncertainty and the value of information. Existence value, contingent valuation and the value of time,crime, life, noise, and other pleasures and pains.

The course focuses on the nature and workings of international financial markets, in particular from the perspective of asset management. Topics covered include key theories on asset pricing and market efficiency, dynamic portfolio optimization, risk and return assessment, financial crises, behavioral finance, and ethical issues. The acquisition of technical expertise is emphasized; students should be able to systematically work on and apply the necessary formulas. In addition, emphasis is placed on students’ acquisition of solid understanding of the nature and workings of financial markets. The course is partly based on the BS course in Portfolio Management and students are expected to have completed this or a comparable course, or to familiarize themselves with the relevant material along with the material covered in this course.

This course is taught every other year.

Course content: Corporate and investment valuation. Discussion of the content and analysis of financial statements in the context of valuation of companies and investments. Discussion of various methods for valuation, suitable for valuation of different companies such as operating companies, real estate companies, banks, insurance companies, etc.

This course will cover the key areas of change management, such as the implementation of change, employee reactions, key barriers to change, and the positive and negative forces that affect the change process. The theories and concepts that change management is based on will be discussed in detail as well as the key approaches and methods for managing change. The role of the leader, manager, and the middle manager in managing change as well as crises will be discussed. Organizational culture will be discussed and why it is an important element of the change process.

The goal of the course is to give students insight into qualitative research methods, and their use in gatherin and analysing data on the individual and organizational level. Stuents will be trained in defining a research problems and presenting them in a research question. Students will further plann and execute data gethering and analysing, as well as presenting the findings in a written report. Students will learn about the strenghts and weaknesses of qualitative research so as to be able to chose the best method to study a given problem.

The course Applied Econometrics aims to enhance students' ability to read, analyze, and evaluate scientific research in the field of economics. Students will read academic papers, deliver presentations on them, and participate in discussions on research topics. Additionally, students will receive training in systematically summarizing the state of knowledge in a specific area of economics. The course lays the foundation for a better understanding of research methods in economics and prepares students for writing their final thesis as well as for further studies or careers where the analysis and interpretation of research are key components.

The objective of the course is to afford the students an opportunity to apply the tools and theories of finance that they have studied in other courses (see the prerequisites), to complete assignments and define the conditions behind certain theories/models/methods, being used. Practical cases improve decision making skills, through confronting diverse and real cases. The goal of the assignments is not necessarily to work out one correct solution, as is common in both undergraduate and graduate assignments, but rather to recognize the underlying problem and use the appropriate financial tools and theories to deal with the problem. In fact, the cases are written in such a way that there is no one single correct solution. It is, however, possible to pose good or bad reasoning to support a solution. Thus it is important to be able to substantiate why a particular financial tool was selected as a solution to the problem.
Emphasis will be placed on students adopting the technical aspects of the subject matter, i.e. that they are able to present the problems under consideration clearly and comprehensively, and that they can use the appropriate calculations to solve them.

Economic analysis often treats the firm, the market, and the economic system as standardized parameters. In this course, economic organization, and the evolution of industries and other social systems are the main topics of study. Economic systems change—for instance, industrial revolutions occur—and, at any point in time, the organization of industry varies between countries. And, new technology requires changes in organization. The course is in three parts. In the first part, we introduce various theoretical concepts such as the economics of property rights and the impact of transaction costs on the structure of firms and the nature of contracts. We also discuss how uncertainty, risk, politics, and ignorance limit reforms. The second part of the course deals with the origins and evolution of modern market societies in Western Europe and examines the underlying social mechanisms that keep the market system going. We also look at the forces that cause some countries to be less developed than others. The final section of the course examines the new high-tech or knowledge society and analyzes how new technologies, such as those associated with computers and the life sciences, impact the structure of property rights, the nature of firms, forms of contracting, the cost of transacting, and the global distribution of industries. We also examine how the new technologies will in various ways affect our lives, for instance through new types of crime, changes in the workplace and in urbanization.
Note that the students are expected to come prepared to class and be able to discuss the assigned material.

The objective of this course is to introduce and explain the fundamental economic laws of natural resource utilization. Optimal utilisation patterns in static and dynamic contexts are examined. The reasons for frequently observed suboptimal utilization of natural resources are explained. On that basis, efficient management regimes for natural resource utilization are discussed. The economics of fisheries, energy and the environment are specifically examined. Standard methods of analytical economics are employed.

The objective of the course is to familiarize Master’s students in the School of Business with the principles and techniques of employee relations. The course covers key theories of employment relations, the structure of institutions in the labour market, and the structure, development and characteristics of the Icelandic labour market. The roles and relations between the main actors in the labour market will be discussed in detail, such as government, employers, and labour unions. The division of the labour market into the public sector and private sector is discussed. The role of labour unions, employers, and government in the labour market is discussed, as well as labour market participation, the flexibility of the labour market, collective bargaining, and equal rights. Collective bargaining agreements and their development is discussed, as well as strikes and theories on strikes. Labour markets in different countries are compared.

The purpose of the course is to teach students how to apply financial theory in practice. The course will present how to approach practical financial problems by using theory in the spreadsheet environment of Excel and in the coding environment of Visual Basic. Cornerstone financial models will be assessed using real world data. Upon completion of the course, students should be comfortable with pricing securities (bonds, stock, derivatives) and performing various types of risk evaluations. Topics covered include portfolio management and evaluation, assessment of equilibrium stock pricing models, option pricing (e.g. Monte Carlo), volatility predications (e.g. GARCH models), bond immunization strategies, term structure estimation, etc. In short, the purpose of the course is to help students learn how to use the tools necessary to use financial theory in a practical way which will benefit them in any finance or research related position.

The course begins with exploring the economic theory of the firm as seen by and what makes the firm valuable. The course is based on the key theories of institutional economics on the firm as bundles of contracts and transaction costs. This discussion is followed by the key theories and methods for calculating and measuring the value of companies and their assets. Furthermore, the key concerns related to these methods and theories are covered, e.g. in the valuation of non-traditional assets, such as none-revenue bearing assets and fast-growing companies. The implications of these theories and methods for financial decision making are discussed. Finally, the influence of different contract forms on investment decisions are discussed in relation to transaction costs and other issues.

In this course, the main types of fixed income instruments and interest rate derivatives will be covered. Emphasis will be placed on bonds in international context as well as the special features of the domestic bond market. Some of the issues covered will be: traditional, indexed-linked, callable and convertible bonds, credit and interest rate derivatives. Pricing, portfolio management and risk management for fixed income instruments and derivatives on those will also be covered.

The main emphasis of the course is on the role of financial markets and institutions. The interplay between central bank and commercial banks is explored in relation to interest rate - and exchange rate determination. Furthermore, the connection between monetary and fiscal policy is mapped out, regarding both price and financial stability. The second emphasis of the course is on the role of the banking system in the economy and on the function of main asset markets. The main structural characteristics of Icelandic financial markets are described in comparison to foreign markets.

The course has three linked facets (taught in English) and is suitable for students of economics, business, finance and political science. 

• how the human species makes decisions
• how the decision-weaknesses of others can be strategically exploited
• insights and tools to improve students’ own decision-making now and in the future.

“Decisions have consequences”. In addition to providing an increased understanding of the science of economic and financial decision-making, this course improves the decision-making of each participant. The ability to make better decisions conveys a life-long, and broad, competitive advantage.

The instructor is an experimental game theorist and practicing strategist and strategic consultant. The course combines new trends in behavioral game theory and scientific strategy with application in business and geopolitics.

The class is interactive. Attendance of at least 80% is required as part of the assessment. The course is thus not suitable for students who cannot attend much due to a conflicting schedule.

Course topics include:

• Controlling emotion
• Neurological research on intuition, and leveraging one's own intuition.
• Influencing the decisions of others.
• Improving the decisions of groups and teams.
• Bubbles and crashes in the financial markets: understanding and possibly profiting from cycles.
• The science of risk versus how humans usually think about risk
• Mass movements, mobs, violence and crowd control, and strategizing in such situations.
• Politics behind the scenes.
• How the human brain really makes decisions (as opposed to the standard economic model of optimization).
• Identifying common errors and traps that prevent effective decisions.
• Analyzing one's own decision-making processes and pinpointing problem areas.
• Techniques to improve one’s judgments and decisions.

The goal of this course is to strengthen the statistics and methodology knowledge of the students to enable them to better understand research methods and research findings. State-of-the-art research will be reviewed and the statistics and methodology required to conduct this research will be discussed. Students will also conduct their own research project in preparation for analytical work in their professional life and their Master’s thesis.

The objective of the course is to provide students with insight into law & economics, which focuses on the economic analysis of law and the legal process. The course will cover core concepts in law & economics, which lay the foundation of all economic analysis of law such as the price system, efficiency criteria (Pareto and Kaldor-Hicks) and the Coase theorem. The course will then proceed with coverage of the main subfields of law & economics, such as property law & economics, tort law & economics, contract law & economics, competition (or antitrust) law & economics, and economics of civil procedure and crime. The following topics provide some examples: Which rules provide the optimum protection of legal rights? Under which circumstances is government intervention justified? Does the initial allocation of rights impact resource allocation in the economy or can transfer of rights through contract promote efficiency? What are the costs and benefits associated with legal rules? Which liability rules minimize the social costs of accidents? What is the efficiency associated with contract remedies and breach? Can we allocate the benefits of mergers between producers and consumers? Is there economically efficient level of crime? Under what circumstances are settlements more efficient that suits? If time permits, topics in behavioral law & economics, game theory and the law and private enforcement of law in medieval Iceland will also be discussed. Even though law & economics is typically viewed as a field in legal studies, many of the theorems in the field have been advanced by economists, like Nobel prize winners Gary Becker, Ronald Coase, Oliver Hart, Elinor Ostrom and Oliver Williamson. Equal emphasis will be placed on theoretical insights and practical applications. The course should be of interest to anyone curious about the impact of laws and regulations on human activity and economic efficiency, and particularly those in the field of law, economics, business and political science. Mathematical proficiency equal to that of the minimum requirements for admission to the University of Iceland is required. The course will be conducted in Icelandic.

The goal of the course is to introduce to students the basic theories and methods of modern economics, both microeconomics and macroeconomics. The microeconomics part covers the following topics: consumers and market demand, demand elasticity, firms and different competition conditions in markets, consumer surplus, producer surplus and welfare. The macroeconomics part discussed important topics in macroeconomics such as unemployment, inflation, economic growth and discusses basic theories of macroeconomics concerning the development of an economy in the short and long run.

The goal of the course is to introduce students to basic methods in mathematics and statistics used in economic analysis. The mathematics part covers the following topics: functions, differentiation, integration, maximization with and without constraints, series and sequences, and simple difference and differential equations. The statistics part covers the following topics: random variables, probability, distributions, mean, variance, covariance, correlation, law of large numbers, samples, hypothesis testing, point estimation, and interval estimation.

This course will familiarize students with the basic foundations of microeconomic theory and   how to apply that theory to analyse economic decision making, for both consumers and firms and organizations, and both in markets and the public sector. The topics cover both consumer and production theory, the different market structures, welfare economics, as well as analysing market changes and government intervention. In addition to the theoretical foundations of economic analysis, the course material will also encourage and engage students in discussion on applied microeconomics and students will be required to work on assignment/exercises.

This course covers the basic methodology of macroeconomics and trains students in applying this to analyse various economic phenomena. Main topics are long-term economic growth, optimal saving, dynamic optimization, sticky prices, credit rationing and market failure in financial markets, long-term unemployment and the natural rate of unemployment, short- and long-term fluctuations in employment and production.

All information on final theses you will find in Ugla:
https://ugla.hi.is/cms/milli.php?sid=4221

The topic of the master's thesis must be chosen after consulting the thesis advisor(s), who must be full-time faculty at the Faculty of  Economics. The thesis must be at least 30 credits.
The thesis must be submitted online no later than the specified dates that are announced before each graduation. Grades for a master's thesis are given by the thesis advisor(s) and an outside reader.

All information on final theses you will find in Ugla:
https://ugla.hi.is/cms/milli.php?sid=4221

The topic of the master's thesis must be chosen after consulting the thesis advisor(s), who must be full-time faculty at the Faculty of  Economics. The thesis must be at least 30 credits.
The thesis must be submitted online no later than the specified dates that are announced before each graduation. Grades for a master's thesis are given by the thesis advisor(s) and an outside reader.

Select topics from the BS course Finance II, but more in depth. Topics include cost of capital, evaluation and selection of financing alternatives for the long term and the short term, alternatives for the dividend policy and capital structure, bond issues, stock issues, credit rating, mergers and acquisitions, and financial restructuring. Corporate finance is discussed from the viewpoint of both the Chief Financial Officer, who needs to master both the practical and theoretical aspects of the position, as well as that of investors and creditors, who need to assess the credit rating and going concern.

The course will cover the main points of statistics and pricing in finance. Emphasis is placed on introducing students to the use of numerical and mathematical methods to analyze, price and obtain information about financial instruments. Emphasis is placed on real examples where students are trained to solve tasks similar to those they may have to solve in the workplace.

The statistical part of the course will cover time series analysis. There, models such as auto regressive models (e. Auto regressive model, AR model) and models with moving averages (e. Moving-average model, MA model) will be introduced to play. Also the combination of ARMA, ARIMA and SARIMA models. Finally, conditional variance models or ARCH and GARCH models will be reviewed.

In the pricing section, we will cover binomial trees, Wiener processes, Ito's auxiliary theorem, the Black-Scoles-Merton model and the pricing of stock and currency options.

The course will cover the main points of statistics and pricing in finance. Emphasis is placed on introducing students to the use of statistical and mathematical methods to analyze, price and obtain information about financial instruments. Emphasis is placed on real examples where students are trained to solve tasks similar to those they may have to solve in their jobs in the financial market.

In the statistical part of the course, ideas about continuous and sparse probability distributions, expected values, variance and standard deviation, confidence intervals, null hypotheses and linear regression analyses, both simple and multivariate, will be reviewed. The basic ideas of the Capital Asset Pricing Model (CAPM) will also be reviewed.

The pricing part of the course will deal with the pricing of futures contracts on shares, bonds and currency and interest rate swaps, the construction of interest rate curves, as well as the types and characteristics of options.

Labour economics seeks to understand the functioning of the market for wage labor. Supply and demand for labour, wage formation and employment are fundamental issues within labour economics. The course also discusses what determines wage distribution and the impact of labor market institutions on wages and employment.

The objective of this course is to familiarize students with the latest key theories in human resource management and that they gain understanding and proficiency in using key HRM theories. Theories of HRM are covered in detail and the goal is that students understand the importance of HRM as a field of study and as an important function within organizations. Key aspects of HRM will be covered and it is important that students familiarize themselves with the course concepts through lectures and discussion sessions where they will work on the solution of practical cases.

Industrial organization is a field of economics that studies the structure of and boundaries between firms and markets and the interactions of firms strategic behavior of firms. The study of industrial organization adds to the perfectly competitive model real-world frictions such as limited information, transaction costs, costs of adjusting prices, government actions, and barriers to entry by new firms into a market that may be associated with imperfect competition. It then considers how firms are organized and how they compete, and examines deviations from the model of perfect competition in exchanges between firms, and between firms and households. These deviations occur, for instance, because of oligopoly, monopoly, attempts to limit entry to markets, transaction costs, and incomplete information.

The course covers both the management of individual projects and the management of projects in an organization. Both theoretical and practical aspects will be covered. Students will gain a good understanding of the elements of project work and project management in business operations and the ability to manage individual projects. Students will learn the structure of the program, progress, and termination of projects. Students will also learn to use software and technology for project management. Students are introduced to projects in an international environment and Agile ideology. The student will be an emphasis on putting on project management in Icelandic business environment and use of information technology.

Please note, students must log in and purchase the book Project Management, The Managerial Process on the McGraw-Hill website. Further information can be found on the course's Canvas page.

The purpose of Cost benefit analysis is to facilitate social decision making. The purpose of the course in Cost benefit analysis is to introduce to the student the foundation of CBA. CBA is used in many applications where governmental agencies at all evels are involved. CBA is routinely used to assist in making decisions regarding highway projects, health-care projects and so on. CBA is also useful to evaluate projects involving environmental damage or renewal. Topics include: Conceptually correct measures of social surplus vs. measures actually used. Estimating consumer surplus, producer surplus, and government revenue (i.e., social surplus) in primary and secondary markets, the social discount rate, uncertainty and the value of information. Existence value, contingent valuation and the value of time,crime, life, noise, and other pleasures and pains.

The course focuses on the nature and workings of international financial markets, in particular from the perspective of asset management. Topics covered include key theories on asset pricing and market efficiency, dynamic portfolio optimization, risk and return assessment, financial crises, behavioral finance, and ethical issues. The acquisition of technical expertise is emphasized; students should be able to systematically work on and apply the necessary formulas. In addition, emphasis is placed on students’ acquisition of solid understanding of the nature and workings of financial markets. The course is partly based on the BS course in Portfolio Management and students are expected to have completed this or a comparable course, or to familiarize themselves with the relevant material along with the material covered in this course.

This course is taught every other year.

Course content: Corporate and investment valuation. Discussion of the content and analysis of financial statements in the context of valuation of companies and investments. Discussion of various methods for valuation, suitable for valuation of different companies such as operating companies, real estate companies, banks, insurance companies, etc.

This course will cover the key areas of change management, such as the implementation of change, employee reactions, key barriers to change, and the positive and negative forces that affect the change process. The theories and concepts that change management is based on will be discussed in detail as well as the key approaches and methods for managing change. The role of the leader, manager, and the middle manager in managing change as well as crises will be discussed. Organizational culture will be discussed and why it is an important element of the change process.

The goal of the course is to give students insight into qualitative research methods, and their use in gatherin and analysing data on the individual and organizational level. Stuents will be trained in defining a research problems and presenting them in a research question. Students will further plann and execute data gethering and analysing, as well as presenting the findings in a written report. Students will learn about the strenghts and weaknesses of qualitative research so as to be able to chose the best method to study a given problem.

The course Applied Econometrics aims to enhance students' ability to read, analyze, and evaluate scientific research in the field of economics. Students will read academic papers, deliver presentations on them, and participate in discussions on research topics. Additionally, students will receive training in systematically summarizing the state of knowledge in a specific area of economics. The course lays the foundation for a better understanding of research methods in economics and prepares students for writing their final thesis as well as for further studies or careers where the analysis and interpretation of research are key components.

The objective of the course is to afford the students an opportunity to apply the tools and theories of finance that they have studied in other courses (see the prerequisites), to complete assignments and define the conditions behind certain theories/models/methods, being used. Practical cases improve decision making skills, through confronting diverse and real cases. The goal of the assignments is not necessarily to work out one correct solution, as is common in both undergraduate and graduate assignments, but rather to recognize the underlying problem and use the appropriate financial tools and theories to deal with the problem. In fact, the cases are written in such a way that there is no one single correct solution. It is, however, possible to pose good or bad reasoning to support a solution. Thus it is important to be able to substantiate why a particular financial tool was selected as a solution to the problem.
Emphasis will be placed on students adopting the technical aspects of the subject matter, i.e. that they are able to present the problems under consideration clearly and comprehensively, and that they can use the appropriate calculations to solve them.

Economic analysis often treats the firm, the market, and the economic system as standardized parameters. In this course, economic organization, and the evolution of industries and other social systems are the main topics of study. Economic systems change—for instance, industrial revolutions occur—and, at any point in time, the organization of industry varies between countries. And, new technology requires changes in organization. The course is in three parts. In the first part, we introduce various theoretical concepts such as the economics of property rights and the impact of transaction costs on the structure of firms and the nature of contracts. We also discuss how uncertainty, risk, politics, and ignorance limit reforms. The second part of the course deals with the origins and evolution of modern market societies in Western Europe and examines the underlying social mechanisms that keep the market system going. We also look at the forces that cause some countries to be less developed than others. The final section of the course examines the new high-tech or knowledge society and analyzes how new technologies, such as those associated with computers and the life sciences, impact the structure of property rights, the nature of firms, forms of contracting, the cost of transacting, and the global distribution of industries. We also examine how the new technologies will in various ways affect our lives, for instance through new types of crime, changes in the workplace and in urbanization.
Note that the students are expected to come prepared to class and be able to discuss the assigned material.

The objective of this course is to introduce and explain the fundamental economic laws of natural resource utilization. Optimal utilisation patterns in static and dynamic contexts are examined. The reasons for frequently observed suboptimal utilization of natural resources are explained. On that basis, efficient management regimes for natural resource utilization are discussed. The economics of fisheries, energy and the environment are specifically examined. Standard methods of analytical economics are employed.

The objective of the course is to familiarize Master’s students in the School of Business with the principles and techniques of employee relations. The course covers key theories of employment relations, the structure of institutions in the labour market, and the structure, development and characteristics of the Icelandic labour market. The roles and relations between the main actors in the labour market will be discussed in detail, such as government, employers, and labour unions. The division of the labour market into the public sector and private sector is discussed. The role of labour unions, employers, and government in the labour market is discussed, as well as labour market participation, the flexibility of the labour market, collective bargaining, and equal rights. Collective bargaining agreements and their development is discussed, as well as strikes and theories on strikes. Labour markets in different countries are compared.

The purpose of the course is to teach students how to apply financial theory in practice. The course will present how to approach practical financial problems by using theory in the spreadsheet environment of Excel and in the coding environment of Visual Basic. Cornerstone financial models will be assessed using real world data. Upon completion of the course, students should be comfortable with pricing securities (bonds, stock, derivatives) and performing various types of risk evaluations. Topics covered include portfolio management and evaluation, assessment of equilibrium stock pricing models, option pricing (e.g. Monte Carlo), volatility predications (e.g. GARCH models), bond immunization strategies, term structure estimation, etc. In short, the purpose of the course is to help students learn how to use the tools necessary to use financial theory in a practical way which will benefit them in any finance or research related position.

The course begins with exploring the economic theory of the firm as seen by and what makes the firm valuable. The course is based on the key theories of institutional economics on the firm as bundles of contracts and transaction costs. This discussion is followed by the key theories and methods for calculating and measuring the value of companies and their assets. Furthermore, the key concerns related to these methods and theories are covered, e.g. in the valuation of non-traditional assets, such as none-revenue bearing assets and fast-growing companies. The implications of these theories and methods for financial decision making are discussed. Finally, the influence of different contract forms on investment decisions are discussed in relation to transaction costs and other issues.

In this course, the main types of fixed income instruments and interest rate derivatives will be covered. Emphasis will be placed on bonds in international context as well as the special features of the domestic bond market. Some of the issues covered will be: traditional, indexed-linked, callable and convertible bonds, credit and interest rate derivatives. Pricing, portfolio management and risk management for fixed income instruments and derivatives on those will also be covered.

The main emphasis of the course is on the role of financial markets and institutions. The interplay between central bank and commercial banks is explored in relation to interest rate - and exchange rate determination. Furthermore, the connection between monetary and fiscal policy is mapped out, regarding both price and financial stability. The second emphasis of the course is on the role of the banking system in the economy and on the function of main asset markets. The main structural characteristics of Icelandic financial markets are described in comparison to foreign markets.

The course has three linked facets (taught in English) and is suitable for students of economics, business, finance and political science. 

• how the human species makes decisions
• how the decision-weaknesses of others can be strategically exploited
• insights and tools to improve students’ own decision-making now and in the future.

“Decisions have consequences”. In addition to providing an increased understanding of the science of economic and financial decision-making, this course improves the decision-making of each participant. The ability to make better decisions conveys a life-long, and broad, competitive advantage.

The instructor is an experimental game theorist and practicing strategist and strategic consultant. The course combines new trends in behavioral game theory and scientific strategy with application in business and geopolitics.

The class is interactive. Attendance of at least 80% is required as part of the assessment. The course is thus not suitable for students who cannot attend much due to a conflicting schedule.

Course topics include:

• Controlling emotion
• Neurological research on intuition, and leveraging one's own intuition.
• Influencing the decisions of others.
• Improving the decisions of groups and teams.
• Bubbles and crashes in the financial markets: understanding and possibly profiting from cycles.
• The science of risk versus how humans usually think about risk
• Mass movements, mobs, violence and crowd control, and strategizing in such situations.
• Politics behind the scenes.
• How the human brain really makes decisions (as opposed to the standard economic model of optimization).
• Identifying common errors and traps that prevent effective decisions.
• Analyzing one's own decision-making processes and pinpointing problem areas.
• Techniques to improve one’s judgments and decisions.

The goal of this course is to strengthen the statistics and methodology knowledge of the students to enable them to better understand research methods and research findings. State-of-the-art research will be reviewed and the statistics and methodology required to conduct this research will be discussed. Students will also conduct their own research project in preparation for analytical work in their professional life and their Master’s thesis.

The objective of the course is to provide students with insight into law & economics, which focuses on the economic analysis of law and the legal process. The course will cover core concepts in law & economics, which lay the foundation of all economic analysis of law such as the price system, efficiency criteria (Pareto and Kaldor-Hicks) and the Coase theorem. The course will then proceed with coverage of the main subfields of law & economics, such as property law & economics, tort law & economics, contract law & economics, competition (or antitrust) law & economics, and economics of civil procedure and crime. The following topics provide some examples: Which rules provide the optimum protection of legal rights? Under which circumstances is government intervention justified? Does the initial allocation of rights impact resource allocation in the economy or can transfer of rights through contract promote efficiency? What are the costs and benefits associated with legal rules? Which liability rules minimize the social costs of accidents? What is the efficiency associated with contract remedies and breach? Can we allocate the benefits of mergers between producers and consumers? Is there economically efficient level of crime? Under what circumstances are settlements more efficient that suits? If time permits, topics in behavioral law & economics, game theory and the law and private enforcement of law in medieval Iceland will also be discussed. Even though law & economics is typically viewed as a field in legal studies, many of the theorems in the field have been advanced by economists, like Nobel prize winners Gary Becker, Ronald Coase, Oliver Hart, Elinor Ostrom and Oliver Williamson. Equal emphasis will be placed on theoretical insights and practical applications. The course should be of interest to anyone curious about the impact of laws and regulations on human activity and economic efficiency, and particularly those in the field of law, economics, business and political science. Mathematical proficiency equal to that of the minimum requirements for admission to the University of Iceland is required. The course will be conducted in Icelandic.

The goal of the course is to introduce to students the basic theories and methods of modern economics, both microeconomics and macroeconomics. The microeconomics part covers the following topics: consumers and market demand, demand elasticity, firms and different competition conditions in markets, consumer surplus, producer surplus and welfare. The macroeconomics part discussed important topics in macroeconomics such as unemployment, inflation, economic growth and discusses basic theories of macroeconomics concerning the development of an economy in the short and long run.

The goal of the course is to introduce students to basic methods in mathematics and statistics used in economic analysis. The mathematics part covers the following topics: functions, differentiation, integration, maximization with and without constraints, series and sequences, and simple difference and differential equations. The statistics part covers the following topics: random variables, probability, distributions, mean, variance, covariance, correlation, law of large numbers, samples, hypothesis testing, point estimation, and interval estimation.

This course will familiarize students with the basic foundations of microeconomic theory and   how to apply that theory to analyse economic decision making, for both consumers and firms and organizations, and both in markets and the public sector. The topics cover both consumer and production theory, the different market structures, welfare economics, as well as analysing market changes and government intervention. In addition to the theoretical foundations of economic analysis, the course material will also encourage and engage students in discussion on applied microeconomics and students will be required to work on assignment/exercises.

This course covers the basic methodology of macroeconomics and trains students in applying this to analyse various economic phenomena. Main topics are long-term economic growth, optimal saving, dynamic optimization, sticky prices, credit rationing and market failure in financial markets, long-term unemployment and the natural rate of unemployment, short- and long-term fluctuations in employment and production.

All information on final theses you will find in Ugla:
https://ugla.hi.is/cms/milli.php?sid=4221

The topic of the master's thesis must be chosen after consulting the thesis advisor(s), who must be full-time faculty at the Faculty of  Economics. The thesis must be at least 30 credits.
The thesis must be submitted online no later than the specified dates that are announced before each graduation. Grades for a master's thesis are given by the thesis advisor(s) and an outside reader.

All information on final theses you will find in Ugla:
https://ugla.hi.is/cms/milli.php?sid=4221

The topic of the master's thesis must be chosen after consulting the thesis advisor(s), who must be full-time faculty at the Faculty of  Economics. The thesis must be at least 30 credits.
The thesis must be submitted online no later than the specified dates that are announced before each graduation. Grades for a master's thesis are given by the thesis advisor(s) and an outside reader.

Select topics from the BS course Finance II, but more in depth. Topics include cost of capital, evaluation and selection of financing alternatives for the long term and the short term, alternatives for the dividend policy and capital structure, bond issues, stock issues, credit rating, mergers and acquisitions, and financial restructuring. Corporate finance is discussed from the viewpoint of both the Chief Financial Officer, who needs to master both the practical and theoretical aspects of the position, as well as that of investors and creditors, who need to assess the credit rating and going concern.

The course will cover the main points of statistics and pricing in finance. Emphasis is placed on introducing students to the use of numerical and mathematical methods to analyze, price and obtain information about financial instruments. Emphasis is placed on real examples where students are trained to solve tasks similar to those they may have to solve in the workplace.

The statistical part of the course will cover time series analysis. There, models such as auto regressive models (e. Auto regressive model, AR model) and models with moving averages (e. Moving-average model, MA model) will be introduced to play. Also the combination of ARMA, ARIMA and SARIMA models. Finally, conditional variance models or ARCH and GARCH models will be reviewed.

In the pricing section, we will cover binomial trees, Wiener processes, Ito's auxiliary theorem, the Black-Scoles-Merton model and the pricing of stock and currency options.

The course will cover the main points of statistics and pricing in finance. Emphasis is placed on introducing students to the use of statistical and mathematical methods to analyze, price and obtain information about financial instruments. Emphasis is placed on real examples where students are trained to solve tasks similar to those they may have to solve in their jobs in the financial market.

In the statistical part of the course, ideas about continuous and sparse probability distributions, expected values, variance and standard deviation, confidence intervals, null hypotheses and linear regression analyses, both simple and multivariate, will be reviewed. The basic ideas of the Capital Asset Pricing Model (CAPM) will also be reviewed.

The pricing part of the course will deal with the pricing of futures contracts on shares, bonds and currency and interest rate swaps, the construction of interest rate curves, as well as the types and characteristics of options.

Labour economics seeks to understand the functioning of the market for wage labor. Supply and demand for labour, wage formation and employment are fundamental issues within labour economics. The course also discusses what determines wage distribution and the impact of labor market institutions on wages and employment.

The objective of this course is to familiarize students with the latest key theories in human resource management and that they gain understanding and proficiency in using key HRM theories. Theories of HRM are covered in detail and the goal is that students understand the importance of HRM as a field of study and as an important function within organizations. Key aspects of HRM will be covered and it is important that students familiarize themselves with the course concepts through lectures and discussion sessions where they will work on the solution of practical cases.

Industrial organization is a field of economics that studies the structure of and boundaries between firms and markets and the interactions of firms strategic behavior of firms. The study of industrial organization adds to the perfectly competitive model real-world frictions such as limited information, transaction costs, costs of adjusting prices, government actions, and barriers to entry by new firms into a market that may be associated with imperfect competition. It then considers how firms are organized and how they compete, and examines deviations from the model of perfect competition in exchanges between firms, and between firms and households. These deviations occur, for instance, because of oligopoly, monopoly, attempts to limit entry to markets, transaction costs, and incomplete information.

The course covers both the management of individual projects and the management of projects in an organization. Both theoretical and practical aspects will be covered. Students will gain a good understanding of the elements of project work and project management in business operations and the ability to manage individual projects. Students will learn the structure of the program, progress, and termination of projects. Students will also learn to use software and technology for project management. Students are introduced to projects in an international environment and Agile ideology. The student will be an emphasis on putting on project management in Icelandic business environment and use of information technology.

Please note, students must log in and purchase the book Project Management, The Managerial Process on the McGraw-Hill website. Further information can be found on the course's Canvas page.

The purpose of Cost benefit analysis is to facilitate social decision making. The purpose of the course in Cost benefit analysis is to introduce to the student the foundation of CBA. CBA is used in many applications where governmental agencies at all evels are involved. CBA is routinely used to assist in making decisions regarding highway projects, health-care projects and so on. CBA is also useful to evaluate projects involving environmental damage or renewal. Topics include: Conceptually correct measures of social surplus vs. measures actually used. Estimating consumer surplus, producer surplus, and government revenue (i.e., social surplus) in primary and secondary markets, the social discount rate, uncertainty and the value of information. Existence value, contingent valuation and the value of time,crime, life, noise, and other pleasures and pains.

The course focuses on the nature and workings of international financial markets, in particular from the perspective of asset management. Topics covered include key theories on asset pricing and market efficiency, dynamic portfolio optimization, risk and return assessment, financial crises, behavioral finance, and ethical issues. The acquisition of technical expertise is emphasized; students should be able to systematically work on and apply the necessary formulas. In addition, emphasis is placed on students’ acquisition of solid understanding of the nature and workings of financial markets. The course is partly based on the BS course in Portfolio Management and students are expected to have completed this or a comparable course, or to familiarize themselves with the relevant material along with the material covered in this course.

This course is taught every other year.

Course content: Corporate and investment valuation. Discussion of the content and analysis of financial statements in the context of valuation of companies and investments. Discussion of various methods for valuation, suitable for valuation of different companies such as operating companies, real estate companies, banks, insurance companies, etc.

This course will cover the key areas of change management, such as the implementation of change, employee reactions, key barriers to change, and the positive and negative forces that affect the change process. The theories and concepts that change management is based on will be discussed in detail as well as the key approaches and methods for managing change. The role of the leader, manager, and the middle manager in managing change as well as crises will be discussed. Organizational culture will be discussed and why it is an important element of the change process.

The goal of the course is to give students insight into qualitative research methods, and their use in gatherin and analysing data on the individual and organizational level. Stuents will be trained in defining a research problems and presenting them in a research question. Students will further plann and execute data gethering and analysing, as well as presenting the findings in a written report. Students will learn about the strenghts and weaknesses of qualitative research so as to be able to chose the best method to study a given problem.

The course Applied Econometrics aims to enhance students' ability to read, analyze, and evaluate scientific research in the field of economics. Students will read academic papers, deliver presentations on them, and participate in discussions on research topics. Additionally, students will receive training in systematically summarizing the state of knowledge in a specific area of economics. The course lays the foundation for a better understanding of research methods in economics and prepares students for writing their final thesis as well as for further studies or careers where the analysis and interpretation of research are key components.

The objective of the course is to afford the students an opportunity to apply the tools and theories of finance that they have studied in other courses (see the prerequisites), to complete assignments and define the conditions behind certain theories/models/methods, being used. Practical cases improve decision making skills, through confronting diverse and real cases. The goal of the assignments is not necessarily to work out one correct solution, as is common in both undergraduate and graduate assignments, but rather to recognize the underlying problem and use the appropriate financial tools and theories to deal with the problem. In fact, the cases are written in such a way that there is no one single correct solution. It is, however, possible to pose good or bad reasoning to support a solution. Thus it is important to be able to substantiate why a particular financial tool was selected as a solution to the problem.
Emphasis will be placed on students adopting the technical aspects of the subject matter, i.e. that they are able to present the problems under consideration clearly and comprehensively, and that they can use the appropriate calculations to solve them.

Economic analysis often treats the firm, the market, and the economic system as standardized parameters. In this course, economic organization, and the evolution of industries and other social systems are the main topics of study. Economic systems change—for instance, industrial revolutions occur—and, at any point in time, the organization of industry varies between countries. And, new technology requires changes in organization. The course is in three parts. In the first part, we introduce various theoretical concepts such as the economics of property rights and the impact of transaction costs on the structure of firms and the nature of contracts. We also discuss how uncertainty, risk, politics, and ignorance limit reforms. The second part of the course deals with the origins and evolution of modern market societies in Western Europe and examines the underlying social mechanisms that keep the market system going. We also look at the forces that cause some countries to be less developed than others. The final section of the course examines the new high-tech or knowledge society and analyzes how new technologies, such as those associated with computers and the life sciences, impact the structure of property rights, the nature of firms, forms of contracting, the cost of transacting, and the global distribution of industries. We also examine how the new technologies will in various ways affect our lives, for instance through new types of crime, changes in the workplace and in urbanization.
Note that the students are expected to come prepared to class and be able to discuss the assigned material.

The objective of this course is to introduce and explain the fundamental economic laws of natural resource utilization. Optimal utilisation patterns in static and dynamic contexts are examined. The reasons for frequently observed suboptimal utilization of natural resources are explained. On that basis, efficient management regimes for natural resource utilization are discussed. The economics of fisheries, energy and the environment are specifically examined. Standard methods of analytical economics are employed.

The objective of the course is to familiarize Master’s students in the School of Business with the principles and techniques of employee relations. The course covers key theories of employment relations, the structure of institutions in the labour market, and the structure, development and characteristics of the Icelandic labour market. The roles and relations between the main actors in the labour market will be discussed in detail, such as government, employers, and labour unions. The division of the labour market into the public sector and private sector is discussed. The role of labour unions, employers, and government in the labour market is discussed, as well as labour market participation, the flexibility of the labour market, collective bargaining, and equal rights. Collective bargaining agreements and their development is discussed, as well as strikes and theories on strikes. Labour markets in different countries are compared.

The purpose of the course is to teach students how to apply financial theory in practice. The course will present how to approach practical financial problems by using theory in the spreadsheet environment of Excel and in the coding environment of Visual Basic. Cornerstone financial models will be assessed using real world data. Upon completion of the course, students should be comfortable with pricing securities (bonds, stock, derivatives) and performing various types of risk evaluations. Topics covered include portfolio management and evaluation, assessment of equilibrium stock pricing models, option pricing (e.g. Monte Carlo), volatility predications (e.g. GARCH models), bond immunization strategies, term structure estimation, etc. In short, the purpose of the course is to help students learn how to use the tools necessary to use financial theory in a practical way which will benefit them in any finance or research related position.

The course begins with exploring the economic theory of the firm as seen by and what makes the firm valuable. The course is based on the key theories of institutional economics on the firm as bundles of contracts and transaction costs. This discussion is followed by the key theories and methods for calculating and measuring the value of companies and their assets. Furthermore, the key concerns related to these methods and theories are covered, e.g. in the valuation of non-traditional assets, such as none-revenue bearing assets and fast-growing companies. The implications of these theories and methods for financial decision making are discussed. Finally, the influence of different contract forms on investment decisions are discussed in relation to transaction costs and other issues.

In this course, the main types of fixed income instruments and interest rate derivatives will be covered. Emphasis will be placed on bonds in international context as well as the special features of the domestic bond market. Some of the issues covered will be: traditional, indexed-linked, callable and convertible bonds, credit and interest rate derivatives. Pricing, portfolio management and risk management for fixed income instruments and derivatives on those will also be covered.

The main emphasis of the course is on the role of financial markets and institutions. The interplay between central bank and commercial banks is explored in relation to interest rate - and exchange rate determination. Furthermore, the connection between monetary and fiscal policy is mapped out, regarding both price and financial stability. The second emphasis of the course is on the role of the banking system in the economy and on the function of main asset markets. The main structural characteristics of Icelandic financial markets are described in comparison to foreign markets.

The course has three linked facets (taught in English) and is suitable for students of economics, business, finance and political science. 

• how the human species makes decisions
• how the decision-weaknesses of others can be strategically exploited
• insights and tools to improve students’ own decision-making now and in the future.

“Decisions have consequences”. In addition to providing an increased understanding of the science of economic and financial decision-making, this course improves the decision-making of each participant. The ability to make better decisions conveys a life-long, and broad, competitive advantage.

The instructor is an experimental game theorist and practicing strategist and strategic consultant. The course combines new trends in behavioral game theory and scientific strategy with application in business and geopolitics.

The class is interactive. Attendance of at least 80% is required as part of the assessment. The course is thus not suitable for students who cannot attend much due to a conflicting schedule.

Course topics include:

• Controlling emotion
• Neurological research on intuition, and leveraging one's own intuition.
• Influencing the decisions of others.
• Improving the decisions of groups and teams.
• Bubbles and crashes in the financial markets: understanding and possibly profiting from cycles.
• The science of risk versus how humans usually think about risk
• Mass movements, mobs, violence and crowd control, and strategizing in such situations.
• Politics behind the scenes.
• How the human brain really makes decisions (as opposed to the standard economic model of optimization).
• Identifying common errors and traps that prevent effective decisions.
• Analyzing one's own decision-making processes and pinpointing problem areas.
• Techniques to improve one’s judgments and decisions.

The goal of this course is to strengthen the statistics and methodology knowledge of the students to enable them to better understand research methods and research findings. State-of-the-art research will be reviewed and the statistics and methodology required to conduct this research will be discussed. Students will also conduct their own research project in preparation for analytical work in their professional life and their Master’s thesis.

The objective of the course is to provide students with insight into law & economics, which focuses on the economic analysis of law and the legal process. The course will cover core concepts in law & economics, which lay the foundation of all economic analysis of law such as the price system, efficiency criteria (Pareto and Kaldor-Hicks) and the Coase theorem. The course will then proceed with coverage of the main subfields of law & economics, such as property law & economics, tort law & economics, contract law & economics, competition (or antitrust) law & economics, and economics of civil procedure and crime. The following topics provide some examples: Which rules provide the optimum protection of legal rights? Under which circumstances is government intervention justified? Does the initial allocation of rights impact resource allocation in the economy or can transfer of rights through contract promote efficiency? What are the costs and benefits associated with legal rules? Which liability rules minimize the social costs of accidents? What is the efficiency associated with contract remedies and breach? Can we allocate the benefits of mergers between producers and consumers? Is there economically efficient level of crime? Under what circumstances are settlements more efficient that suits? If time permits, topics in behavioral law & economics, game theory and the law and private enforcement of law in medieval Iceland will also be discussed. Even though law & economics is typically viewed as a field in legal studies, many of the theorems in the field have been advanced by economists, like Nobel prize winners Gary Becker, Ronald Coase, Oliver Hart, Elinor Ostrom and Oliver Williamson. Equal emphasis will be placed on theoretical insights and practical applications. The course should be of interest to anyone curious about the impact of laws and regulations on human activity and economic efficiency, and particularly those in the field of law, economics, business and political science. Mathematical proficiency equal to that of the minimum requirements for admission to the University of Iceland is required. The course will be conducted in Icelandic.