The aim is to provide a theoretical as well as practical overview in financial economics. The efficient markets and the portfolio theory are covered as well as the Markowitz model. Risk, and risk assessment under uncertainty and using the utility function are introduced. Students will get practice in value assessment methods, CAPM, as well as fixed income analysis. Stock valuation and fundamentals of derivatives calculations such as the B&S model are covered. 
Projects are based on understanding of concepts introduced in the course and their usage.  In addition projects are based on Excel usage.

Basic concepts in probability and statistics based on univariate calculus. 

Topics: 
Sample space, events, probability, equal probability, independent events, conditional probability, Bayes rule, random variables, distribution, density, joint distribution, independent random variables, condistional distribution, mean, variance, covariance, correlation, law of large numbers, Bernoulli, binomial, Poisson, uniform, exponential and normal random variables. Central limit theorem. Poisson process. Random sample, statistics, the distribution of the sample mean and the sample variance. Point estimate, maximum likelihood estimator, mean square error, bias. Interval estimates and hypotheses testing form normal, binomial and exponential samples. Simple linear regression. Goodness of fit tests, test of independence.

Students will be introduced to basic concepts and theories of economics. The main characteristics of markets will be discussed. Furthermore, we will practice using the learned economics to systematically tackle various societal issues. The economic role of governments will be discussed and the effect of certain governmental interventions in market processes. At the end of the course students should have gained some proficiency in applying economic thinking and methods to solve simple economic problem.

The goal of the course is to build a solid foundation in using mathematical methods in economics. The course starts by discussing basic methods in mathematics such as powers and roots, equations and inequalities, sets and functions. Then important methods in mathematical economics are discussed such as vectors, matrixes, determinants, inverses, eigenvalues, eigenvectors, solving systems of linear equations, sets, mappings and functions, differentitation, Taylor's rule and Taylor approximation, integration, static unconstrained optimization.

The course aims to give the students an insight into the main theories, concepts, topics, and principles of macroeconomics and macroeconomic activity. The course stresses both the analytical content and applied usefulness of the topics covered and how they relate to various current economic issues at home and abroad. A sound knowledge of macroeconomics prepares students for various other economics courses, and for life.

The aim of this course is threefold. First, to introduce the fundamentals of financial accounting in order for the students being able to read and understand corporate financial statements. Second, teach the students to analyse and calculate the main important multiples from financial statements as well as being able to interpret their meaning to potential users of this information. Third, the students should be able to conduct fair value estimates of the corporate entities using information from their financial accounts.

Students are assumed to have taken courses in statistics and mathematics corresponding to those taught at the first year in economics. Most of the course is concerned with classical regression theory, i.e. ordinary least squares. The course discussed the various assumptions underlying that model, and the various failures of these assumptions, i.e. serial correlation, heteroskedasticity, multicollinearity and simultaneity. Emphasis is placed on practical assignments, where students learn how to use statistical software and how to interpret their own results.

Intermediate macroeconomics. Main topics: National income accounting. Economic growth. Unemployment and inflation. Aggregate demand and the goods market. Public finance and fiscal policy. Aggregate supply and the labour market. Monetary and fiscal policy in an open economy.

Intermediate microeconomic theory. Basic factors of price theory, uncertainty, including analysis of demand, costs of production and supply relationships, and price and output determination under various market structures, market failures and public choice.

Comparative statics. Maxima and minima: Linear and non-linear programming; the Kuhn-Tucker theorem. Differential and difference equations. Series and sequences. Dynamic economics. The emphasis is on the utilization of mathematical techniques to solve economic problems. Assignments.

The aim of the course is to increase students' knowledge and understanding of the use of statistical methods in economics, with focous on causal inference. The course covers panel data methods, instrumental variable regressions, difference-in-differences and regression discontinuity design.

The course is based on Microeconomics I and II, and students are furthermore required to have completed Mathematics I and Mathematics II. In Microeconomics III the emphasis is on broadening and deepening students' knowledge of economic theory. The focus is on the mathematical presentation of the theories covered in the prerequisite courses in microeconomics. Concepts covered include the effect of uncertainty on the behavior of consumers and producers and market equilibrium. Furthermore, specific markets are discussed, such as the labor market, markets for financial products and equity. Market failures, the economic value of the right of ownership, in addition to the political market, will be covered. An emphasis is placed on demonstrating the use of microeconomics and its methodology in reaching sound decisions on matters of economic issue.

The purpose of this course is to give insights into various aspects of the Icelandic economy, past and present. Among the topics discussed are economic development, population, the labour market, industrial organization and policy, the monetary system, the public sector and foreign trade. Special emphasis is placed on current issues in the Icelandic economy and economic policy, i.e., by writing papers on topical matters. The course is closely related to Economics I.

This main emphasis of the course is on the role of Central Banks in Economic Policy. The main channels of monetary policy are introduced and their effects on financial markets as well as the macroeconomy are discussed. 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 both with regard to price and financial stability. The second emphasis of the course is on 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 with foreign markets.

This course provides training in scientific methodology, especially that for research in economics and in presenting such results. Students will also be required to work on individual research projects and write reports as part of course assignment.

This course focuses on a holistic approach to project management. The content deals with planning, scheduling, organizing, and controlling projects--for example, product development, construction, information systems, new businesses, and special events. The course includes major topics of Strategy, Priorities, Organization, Project Tools, and Leadership. Primary class emphasis is on the project management process and tools. Project management is becoming increasingly more important in today's world. Mastery of key tools and concepts could give you a significant competitive advantage in the marketplace.

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.

This course starts with looking at interest rate markets and how the zero coupon curve is derived. Valuation of different kind of bonds is covered along with the characteristics and risk factors of the major listed bonds, with special emphasis on the Icelandic market. Next the valuation of derivatives is covered along with the main characteristics. Special emphasis is placed on futures/forwards, swaps and options.  The reasons behind derivatives trading are covered and what the main risk factors are.

Subject - Objective: The course will teach you the necessary skills to perform a thorough valuation of companies. Emphasis will be placed on company management and three methods will be taught: comparative analysis, business multipliers and cash flow analysis.

At the same time, emphasis will be placed on the elimination of share value, value added, value added value and yield.

The theory behind decisions of investors and corporations regarding building and managing asset and liability portfolios. Risk management of corporations will also be covered.

The course is taught in English

The learning path starts with overall orientation and definitions. The focus at first is on challenges in the external environment and how organizational effectiveness can be assessed. Then the focus is on understanding and analysing the structure of organizations and on what should be in the picture when an organizational structure is designed. Influences and challenges related to organizational design and ethical and societal challenges are reviewed. Innovation, knowledge, information, and decision making in the context of organizational change are also covered. Then the impact of artificial intelligence on the structure and working methods of organizations will be discussed.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

First part - international trade: Overview of international trade. Economic models of international trade. Reasons for and results of trade between countries, e.g. for wages and interest rates. Tariffs and other import barriers. Trade unions and the link between trade, economic growth and income distribution. Trade policies, i.e. tariffs and quotas.

Second part - international finance: Balance of payments and its composition. Purchasing power parity. Fixed and floating exchange rates in macroeconomic models: the Mundell-Fleming model, the Dornbusch model. Currency areas, financial crises.

The aim of the course is to introduce students to important methods of economic research used in macroeconomics. The properties of data and methods of economic research in macroeconomic modeling are discussed, e.g. difference equations and systems of difference equations, stationary time series, ARMA and ARIMA models. Co-integration methods for non-stationary time series, Granger-Engle and Johansen methods, error correction models, VAR models.

Why some nations are rich and others poor is probably the most important question in economics. Economists have hypothesized that economies based largely on a market economy will grow faster and create better standard of living than those based less on the market. But is this hypothesis really correct? Without comprehensive measurements, it may be difficult to answer the question convincingly.

In recent decades, economists, under the auspices of the new institutional economics or political economy, have published a number of studies attempting to assess the impact of economic, political and legal institutions on the economic performance of economies. These studies seem to support the hypothesis that institutions have a major impact on economic growth and therefore explain the different value of production countries. Other factors, such as culture, climate and geographical location, can also be important, but the characteristics of institutions generally seem to have a greater explanatory power than the others. Research also seems to show a greater link between economic growth and economic institutions than with political institutions, such as democracy. Discussions among scholars about which of these institutions are most important for the growth of economies and about the relationship between cause and effect in economic and political organization are far from over.

Economics of politics looks at politics and governance from the perspective of economics. Economic theories are presented in the context of their social environment. Here we look at social institutions; their origin and development is the topic of discussion. Emphasis is placed on trying to explain how different institutional environments affect the economic behavior of individuals and how different institutions have different effects on the functioning of economies. We discuss transaction costs and the organization of property rights and show how both shape individual behavior, business behavior, and economic growth and the well-being of societies. We also discusses the impact of uncertainty and risk on decisions and how limited knowledge and transaction costs affect and limit reform. The activities of the state and the rules of the game of politics are also be discussed.

The course introduces general equilibrium macroeconomic models used in simulations and forecasting. The course covers so-called DSGE models as well as their simulations using the computer program Dynare, which has been developed by European central banks. Before introducing DSGE models to students, the course covers RBC and New-Keynesian models, which DSGE models are based on, their microceconomic foundations, estimation and use in economic analysis. Þá er fjallað um einvíð og fjölvíð tímaraðalíkön og not þeirra í spágerð.

The course covers theories of consumption, saving and investment as well as mathematical techniques used to solve modern macroeconomic modes, i.e. dynamic optimization, both in continuous and discrete time. In addition to that, the course covers general equilibrium in macroeconomic models and introduces two general equilibrium modes; the Ramsey model and the Diamond model, and applications of the models in fiscal policy and pension systems.

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 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.

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 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 course discusses important macroeconomic models used in the work of economists and those used for analysis, as well as teaching students the mathematical methods used to derive equilibrium conditions in them, i.e. time-dependent optimization in continuous time and solution of systems of differential equations. Among other things consumption and investment theories and the Ramsey and Diamond models are discussed, and they are used to analyze the effects of government fiscal policies and to analyze pension fund issues.

Major figures in the history of economic thought and the tools of analysis they created. Emphasis on the development of economic ideas, especially classical, neo-classical and modern economic theory.

his course is based on the foundation laid down in previous courses in microeconomics. The main goal of the course is to introduce and analyze strategic behavior. This includes market failures, asymmetric information externalities and other situations that modern firms need to respond to. The course has a special emphasis on digital markets, including the unique features of data and digital solutions, digital platforms / multi-sided markets and blockchain, alongside a discussion of old and new

Introduces some of the basic ideas of the toolkit of public choice and how economic models are used to help understand political processes and institutions. Applies the public choice approach to study such topics as individual and collective rationality, voting, political party competition, formation of coalitions, and organization of the legislature. Further application are on the causes and consequences of governmental growth, behavior of public bureaucracies, and economic reasoning behind constitutional limitations on size and growth of government.

Theoretical and institutional analysis of government expenditure, taxation,and debt management. Externalities and political decision making. Allocative and distributional effects of government measures. Principles ofbenefit-cost analysis for government decisions. Efficient and equitable taxation, and optimal tax theory

The course has the objective of (a) providing a framework for analysing macroeconomic policy issues, (b) familiarizing students with some of the most important macroeconomic policy issues faced by Western countries, and (c) describing some of the policies that could be used to tackle these problems. The course will teach students to discuss policy problems, write short memos on the essence of such problems and write a longer paper on one particular macroeconomic policy problem.

The first topic of the course is an introduction to a framework for modelling the role of government in the economy. That is followed by a discussion of eight topics: The economic policy of the new President of the United States and its potential impact on other countries; monetary policy, inflation, and interest rates; public debt and government budget deficits; declining productivity growth in Western countries; savings and the economic implications of aging populations; financial bubbles and crises; externalities and environmental issues; and the provision of public services, such as national defense.

This course covers the basic elements of environmental economics. The properties of optimal environmental use are examined and the ability or inability of the market system to generate the optimal utilization investigated. Environmental management, i.e. methods for inducing optimal environmental use, are discussed both generally and in the context of particular examples. Finally, various methods for environmental valuation and their use in environmental cost-benefit analysis are discussed.

The aim of the first part of the course is to introduce students to various techniques used in time series analysis, such as models for financial data (ARCH/GARCH/SV models), models with time varying parameters, the Kalman filter, and Bayesian estimation. In the second half of the course the main techniques used in machine learning and data science are presented, such as factor models, ridge and LASSO regressions, classification methods, regression trees, clustering and natural language processing as time permits. The emphasis is on presenting the theoretical foundations of the course subjects and their practical implementation in data analysis. Recommended prerequisites are introductory courses on probability and statistics, econometrics, macroeconometrics and the ability to perform data analysis in R.

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 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.

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 aim is to provide a theoretical as well as practical overview in financial economics. The efficient markets and the portfolio theory are covered as well as the Markowitz model. Risk, and risk assessment under uncertainty and using the utility function are introduced. Students will get practice in value assessment methods, CAPM, as well as fixed income analysis. Stock valuation and fundamentals of derivatives calculations such as the B&S model are covered. 
Projects are based on understanding of concepts introduced in the course and their usage.  In addition projects are based on Excel usage.

Basic concepts in probability and statistics based on univariate calculus. 

Topics: 
Sample space, events, probability, equal probability, independent events, conditional probability, Bayes rule, random variables, distribution, density, joint distribution, independent random variables, condistional distribution, mean, variance, covariance, correlation, law of large numbers, Bernoulli, binomial, Poisson, uniform, exponential and normal random variables. Central limit theorem. Poisson process. Random sample, statistics, the distribution of the sample mean and the sample variance. Point estimate, maximum likelihood estimator, mean square error, bias. Interval estimates and hypotheses testing form normal, binomial and exponential samples. Simple linear regression. Goodness of fit tests, test of independence.

Students will be introduced to basic concepts and theories of economics. The main characteristics of markets will be discussed. Furthermore, we will practice using the learned economics to systematically tackle various societal issues. The economic role of governments will be discussed and the effect of certain governmental interventions in market processes. At the end of the course students should have gained some proficiency in applying economic thinking and methods to solve simple economic problem.

The goal of the course is to build a solid foundation in using mathematical methods in economics. The course starts by discussing basic methods in mathematics such as powers and roots, equations and inequalities, sets and functions. Then important methods in mathematical economics are discussed such as vectors, matrixes, determinants, inverses, eigenvalues, eigenvectors, solving systems of linear equations, sets, mappings and functions, differentitation, Taylor's rule and Taylor approximation, integration, static unconstrained optimization.

The course aims to give the students an insight into the main theories, concepts, topics, and principles of macroeconomics and macroeconomic activity. The course stresses both the analytical content and applied usefulness of the topics covered and how they relate to various current economic issues at home and abroad. A sound knowledge of macroeconomics prepares students for various other economics courses, and for life.

The aim of this course is threefold. First, to introduce the fundamentals of financial accounting in order for the students being able to read and understand corporate financial statements. Second, teach the students to analyse and calculate the main important multiples from financial statements as well as being able to interpret their meaning to potential users of this information. Third, the students should be able to conduct fair value estimates of the corporate entities using information from their financial accounts.

Students are assumed to have taken courses in statistics and mathematics corresponding to those taught at the first year in economics. Most of the course is concerned with classical regression theory, i.e. ordinary least squares. The course discussed the various assumptions underlying that model, and the various failures of these assumptions, i.e. serial correlation, heteroskedasticity, multicollinearity and simultaneity. Emphasis is placed on practical assignments, where students learn how to use statistical software and how to interpret their own results.

Intermediate macroeconomics. Main topics: National income accounting. Economic growth. Unemployment and inflation. Aggregate demand and the goods market. Public finance and fiscal policy. Aggregate supply and the labour market. Monetary and fiscal policy in an open economy.

Intermediate microeconomic theory. Basic factors of price theory, uncertainty, including analysis of demand, costs of production and supply relationships, and price and output determination under various market structures, market failures and public choice.

Comparative statics. Maxima and minima: Linear and non-linear programming; the Kuhn-Tucker theorem. Differential and difference equations. Series and sequences. Dynamic economics. The emphasis is on the utilization of mathematical techniques to solve economic problems. Assignments.

The aim of the course is to increase students' knowledge and understanding of the use of statistical methods in economics, with focous on causal inference. The course covers panel data methods, instrumental variable regressions, difference-in-differences and regression discontinuity design.

The course is based on Microeconomics I and II, and students are furthermore required to have completed Mathematics I and Mathematics II. In Microeconomics III the emphasis is on broadening and deepening students' knowledge of economic theory. The focus is on the mathematical presentation of the theories covered in the prerequisite courses in microeconomics. Concepts covered include the effect of uncertainty on the behavior of consumers and producers and market equilibrium. Furthermore, specific markets are discussed, such as the labor market, markets for financial products and equity. Market failures, the economic value of the right of ownership, in addition to the political market, will be covered. An emphasis is placed on demonstrating the use of microeconomics and its methodology in reaching sound decisions on matters of economic issue.

The purpose of this course is to give insights into various aspects of the Icelandic economy, past and present. Among the topics discussed are economic development, population, the labour market, industrial organization and policy, the monetary system, the public sector and foreign trade. Special emphasis is placed on current issues in the Icelandic economy and economic policy, i.e., by writing papers on topical matters. The course is closely related to Economics I.

This main emphasis of the course is on the role of Central Banks in Economic Policy. The main channels of monetary policy are introduced and their effects on financial markets as well as the macroeconomy are discussed. 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 both with regard to price and financial stability. The second emphasis of the course is on 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 with foreign markets.

This course provides training in scientific methodology, especially that for research in economics and in presenting such results. Students will also be required to work on individual research projects and write reports as part of course assignment.

This course focuses on a holistic approach to project management. The content deals with planning, scheduling, organizing, and controlling projects--for example, product development, construction, information systems, new businesses, and special events. The course includes major topics of Strategy, Priorities, Organization, Project Tools, and Leadership. Primary class emphasis is on the project management process and tools. Project management is becoming increasingly more important in today's world. Mastery of key tools and concepts could give you a significant competitive advantage in the marketplace.

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.

This course starts with looking at interest rate markets and how the zero coupon curve is derived. Valuation of different kind of bonds is covered along with the characteristics and risk factors of the major listed bonds, with special emphasis on the Icelandic market. Next the valuation of derivatives is covered along with the main characteristics. Special emphasis is placed on futures/forwards, swaps and options.  The reasons behind derivatives trading are covered and what the main risk factors are.

Subject - Objective: The course will teach you the necessary skills to perform a thorough valuation of companies. Emphasis will be placed on company management and three methods will be taught: comparative analysis, business multipliers and cash flow analysis.

At the same time, emphasis will be placed on the elimination of share value, value added, value added value and yield.

The theory behind decisions of investors and corporations regarding building and managing asset and liability portfolios. Risk management of corporations will also be covered.

The course is taught in English

The learning path starts with overall orientation and definitions. The focus at first is on challenges in the external environment and how organizational effectiveness can be assessed. Then the focus is on understanding and analysing the structure of organizations and on what should be in the picture when an organizational structure is designed. Influences and challenges related to organizational design and ethical and societal challenges are reviewed. Innovation, knowledge, information, and decision making in the context of organizational change are also covered. Then the impact of artificial intelligence on the structure and working methods of organizations will be discussed.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

First part - international trade: Overview of international trade. Economic models of international trade. Reasons for and results of trade between countries, e.g. for wages and interest rates. Tariffs and other import barriers. Trade unions and the link between trade, economic growth and income distribution. Trade policies, i.e. tariffs and quotas.

Second part - international finance: Balance of payments and its composition. Purchasing power parity. Fixed and floating exchange rates in macroeconomic models: the Mundell-Fleming model, the Dornbusch model. Currency areas, financial crises.

The aim of the course is to introduce students to important methods of economic research used in macroeconomics. The properties of data and methods of economic research in macroeconomic modeling are discussed, e.g. difference equations and systems of difference equations, stationary time series, ARMA and ARIMA models. Co-integration methods for non-stationary time series, Granger-Engle and Johansen methods, error correction models, VAR models.

Why some nations are rich and others poor is probably the most important question in economics. Economists have hypothesized that economies based largely on a market economy will grow faster and create better standard of living than those based less on the market. But is this hypothesis really correct? Without comprehensive measurements, it may be difficult to answer the question convincingly.

In recent decades, economists, under the auspices of the new institutional economics or political economy, have published a number of studies attempting to assess the impact of economic, political and legal institutions on the economic performance of economies. These studies seem to support the hypothesis that institutions have a major impact on economic growth and therefore explain the different value of production countries. Other factors, such as culture, climate and geographical location, can also be important, but the characteristics of institutions generally seem to have a greater explanatory power than the others. Research also seems to show a greater link between economic growth and economic institutions than with political institutions, such as democracy. Discussions among scholars about which of these institutions are most important for the growth of economies and about the relationship between cause and effect in economic and political organization are far from over.

Economics of politics looks at politics and governance from the perspective of economics. Economic theories are presented in the context of their social environment. Here we look at social institutions; their origin and development is the topic of discussion. Emphasis is placed on trying to explain how different institutional environments affect the economic behavior of individuals and how different institutions have different effects on the functioning of economies. We discuss transaction costs and the organization of property rights and show how both shape individual behavior, business behavior, and economic growth and the well-being of societies. We also discusses the impact of uncertainty and risk on decisions and how limited knowledge and transaction costs affect and limit reform. The activities of the state and the rules of the game of politics are also be discussed.

The course introduces general equilibrium macroeconomic models used in simulations and forecasting. The course covers so-called DSGE models as well as their simulations using the computer program Dynare, which has been developed by European central banks. Before introducing DSGE models to students, the course covers RBC and New-Keynesian models, which DSGE models are based on, their microceconomic foundations, estimation and use in economic analysis. Þá er fjallað um einvíð og fjölvíð tímaraðalíkön og not þeirra í spágerð.

The course covers theories of consumption, saving and investment as well as mathematical techniques used to solve modern macroeconomic modes, i.e. dynamic optimization, both in continuous and discrete time. In addition to that, the course covers general equilibrium in macroeconomic models and introduces two general equilibrium modes; the Ramsey model and the Diamond model, and applications of the models in fiscal policy and pension systems.

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 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.

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 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 course discusses important macroeconomic models used in the work of economists and those used for analysis, as well as teaching students the mathematical methods used to derive equilibrium conditions in them, i.e. time-dependent optimization in continuous time and solution of systems of differential equations. Among other things consumption and investment theories and the Ramsey and Diamond models are discussed, and they are used to analyze the effects of government fiscal policies and to analyze pension fund issues.

Major figures in the history of economic thought and the tools of analysis they created. Emphasis on the development of economic ideas, especially classical, neo-classical and modern economic theory.

his course is based on the foundation laid down in previous courses in microeconomics. The main goal of the course is to introduce and analyze strategic behavior. This includes market failures, asymmetric information externalities and other situations that modern firms need to respond to. The course has a special emphasis on digital markets, including the unique features of data and digital solutions, digital platforms / multi-sided markets and blockchain, alongside a discussion of old and new

Introduces some of the basic ideas of the toolkit of public choice and how economic models are used to help understand political processes and institutions. Applies the public choice approach to study such topics as individual and collective rationality, voting, political party competition, formation of coalitions, and organization of the legislature. Further application are on the causes and consequences of governmental growth, behavior of public bureaucracies, and economic reasoning behind constitutional limitations on size and growth of government.

Theoretical and institutional analysis of government expenditure, taxation,and debt management. Externalities and political decision making. Allocative and distributional effects of government measures. Principles ofbenefit-cost analysis for government decisions. Efficient and equitable taxation, and optimal tax theory

The course has the objective of (a) providing a framework for analysing macroeconomic policy issues, (b) familiarizing students with some of the most important macroeconomic policy issues faced by Western countries, and (c) describing some of the policies that could be used to tackle these problems. The course will teach students to discuss policy problems, write short memos on the essence of such problems and write a longer paper on one particular macroeconomic policy problem.

The first topic of the course is an introduction to a framework for modelling the role of government in the economy. That is followed by a discussion of eight topics: The economic policy of the new President of the United States and its potential impact on other countries; monetary policy, inflation, and interest rates; public debt and government budget deficits; declining productivity growth in Western countries; savings and the economic implications of aging populations; financial bubbles and crises; externalities and environmental issues; and the provision of public services, such as national defense.

This course covers the basic elements of environmental economics. The properties of optimal environmental use are examined and the ability or inability of the market system to generate the optimal utilization investigated. Environmental management, i.e. methods for inducing optimal environmental use, are discussed both generally and in the context of particular examples. Finally, various methods for environmental valuation and their use in environmental cost-benefit analysis are discussed.

The aim of the first part of the course is to introduce students to various techniques used in time series analysis, such as models for financial data (ARCH/GARCH/SV models), models with time varying parameters, the Kalman filter, and Bayesian estimation. In the second half of the course the main techniques used in machine learning and data science are presented, such as factor models, ridge and LASSO regressions, classification methods, regression trees, clustering and natural language processing as time permits. The emphasis is on presenting the theoretical foundations of the course subjects and their practical implementation in data analysis. Recommended prerequisites are introductory courses on probability and statistics, econometrics, macroeconometrics and the ability to perform data analysis in R.

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 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.

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 aim is to provide a theoretical as well as practical overview in financial economics. The efficient markets and the portfolio theory are covered as well as the Markowitz model. Risk, and risk assessment under uncertainty and using the utility function are introduced. Students will get practice in value assessment methods, CAPM, as well as fixed income analysis. Stock valuation and fundamentals of derivatives calculations such as the B&S model are covered. 
Projects are based on understanding of concepts introduced in the course and their usage.  In addition projects are based on Excel usage.

Basic concepts in probability and statistics based on univariate calculus. 

Topics: 
Sample space, events, probability, equal probability, independent events, conditional probability, Bayes rule, random variables, distribution, density, joint distribution, independent random variables, condistional distribution, mean, variance, covariance, correlation, law of large numbers, Bernoulli, binomial, Poisson, uniform, exponential and normal random variables. Central limit theorem. Poisson process. Random sample, statistics, the distribution of the sample mean and the sample variance. Point estimate, maximum likelihood estimator, mean square error, bias. Interval estimates and hypotheses testing form normal, binomial and exponential samples. Simple linear regression. Goodness of fit tests, test of independence.

Students will be introduced to basic concepts and theories of economics. The main characteristics of markets will be discussed. Furthermore, we will practice using the learned economics to systematically tackle various societal issues. The economic role of governments will be discussed and the effect of certain governmental interventions in market processes. At the end of the course students should have gained some proficiency in applying economic thinking and methods to solve simple economic problem.

The goal of the course is to build a solid foundation in using mathematical methods in economics. The course starts by discussing basic methods in mathematics such as powers and roots, equations and inequalities, sets and functions. Then important methods in mathematical economics are discussed such as vectors, matrixes, determinants, inverses, eigenvalues, eigenvectors, solving systems of linear equations, sets, mappings and functions, differentitation, Taylor's rule and Taylor approximation, integration, static unconstrained optimization.

The course aims to give the students an insight into the main theories, concepts, topics, and principles of macroeconomics and macroeconomic activity. The course stresses both the analytical content and applied usefulness of the topics covered and how they relate to various current economic issues at home and abroad. A sound knowledge of macroeconomics prepares students for various other economics courses, and for life.

The aim of this course is threefold. First, to introduce the fundamentals of financial accounting in order for the students being able to read and understand corporate financial statements. Second, teach the students to analyse and calculate the main important multiples from financial statements as well as being able to interpret their meaning to potential users of this information. Third, the students should be able to conduct fair value estimates of the corporate entities using information from their financial accounts.

Students are assumed to have taken courses in statistics and mathematics corresponding to those taught at the first year in economics. Most of the course is concerned with classical regression theory, i.e. ordinary least squares. The course discussed the various assumptions underlying that model, and the various failures of these assumptions, i.e. serial correlation, heteroskedasticity, multicollinearity and simultaneity. Emphasis is placed on practical assignments, where students learn how to use statistical software and how to interpret their own results.

Intermediate macroeconomics. Main topics: National income accounting. Economic growth. Unemployment and inflation. Aggregate demand and the goods market. Public finance and fiscal policy. Aggregate supply and the labour market. Monetary and fiscal policy in an open economy.

Intermediate microeconomic theory. Basic factors of price theory, uncertainty, including analysis of demand, costs of production and supply relationships, and price and output determination under various market structures, market failures and public choice.

Comparative statics. Maxima and minima: Linear and non-linear programming; the Kuhn-Tucker theorem. Differential and difference equations. Series and sequences. Dynamic economics. The emphasis is on the utilization of mathematical techniques to solve economic problems. Assignments.

The aim of the course is to increase students' knowledge and understanding of the use of statistical methods in economics, with focous on causal inference. The course covers panel data methods, instrumental variable regressions, difference-in-differences and regression discontinuity design.

The course is based on Microeconomics I and II, and students are furthermore required to have completed Mathematics I and Mathematics II. In Microeconomics III the emphasis is on broadening and deepening students' knowledge of economic theory. The focus is on the mathematical presentation of the theories covered in the prerequisite courses in microeconomics. Concepts covered include the effect of uncertainty on the behavior of consumers and producers and market equilibrium. Furthermore, specific markets are discussed, such as the labor market, markets for financial products and equity. Market failures, the economic value of the right of ownership, in addition to the political market, will be covered. An emphasis is placed on demonstrating the use of microeconomics and its methodology in reaching sound decisions on matters of economic issue.

The purpose of this course is to give insights into various aspects of the Icelandic economy, past and present. Among the topics discussed are economic development, population, the labour market, industrial organization and policy, the monetary system, the public sector and foreign trade. Special emphasis is placed on current issues in the Icelandic economy and economic policy, i.e., by writing papers on topical matters. The course is closely related to Economics I.

This main emphasis of the course is on the role of Central Banks in Economic Policy. The main channels of monetary policy are introduced and their effects on financial markets as well as the macroeconomy are discussed. 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 both with regard to price and financial stability. The second emphasis of the course is on 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 with foreign markets.

This course provides training in scientific methodology, especially that for research in economics and in presenting such results. Students will also be required to work on individual research projects and write reports as part of course assignment.

This course focuses on a holistic approach to project management. The content deals with planning, scheduling, organizing, and controlling projects--for example, product development, construction, information systems, new businesses, and special events. The course includes major topics of Strategy, Priorities, Organization, Project Tools, and Leadership. Primary class emphasis is on the project management process and tools. Project management is becoming increasingly more important in today's world. Mastery of key tools and concepts could give you a significant competitive advantage in the marketplace.

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.

This course starts with looking at interest rate markets and how the zero coupon curve is derived. Valuation of different kind of bonds is covered along with the characteristics and risk factors of the major listed bonds, with special emphasis on the Icelandic market. Next the valuation of derivatives is covered along with the main characteristics. Special emphasis is placed on futures/forwards, swaps and options.  The reasons behind derivatives trading are covered and what the main risk factors are.

Subject - Objective: The course will teach you the necessary skills to perform a thorough valuation of companies. Emphasis will be placed on company management and three methods will be taught: comparative analysis, business multipliers and cash flow analysis.

At the same time, emphasis will be placed on the elimination of share value, value added, value added value and yield.

The theory behind decisions of investors and corporations regarding building and managing asset and liability portfolios. Risk management of corporations will also be covered.

The course is taught in English

The learning path starts with overall orientation and definitions. The focus at first is on challenges in the external environment and how organizational effectiveness can be assessed. Then the focus is on understanding and analysing the structure of organizations and on what should be in the picture when an organizational structure is designed. Influences and challenges related to organizational design and ethical and societal challenges are reviewed. Innovation, knowledge, information, and decision making in the context of organizational change are also covered. Then the impact of artificial intelligence on the structure and working methods of organizations will be discussed.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

First part - international trade: Overview of international trade. Economic models of international trade. Reasons for and results of trade between countries, e.g. for wages and interest rates. Tariffs and other import barriers. Trade unions and the link between trade, economic growth and income distribution. Trade policies, i.e. tariffs and quotas.

Second part - international finance: Balance of payments and its composition. Purchasing power parity. Fixed and floating exchange rates in macroeconomic models: the Mundell-Fleming model, the Dornbusch model. Currency areas, financial crises.

The aim of the course is to introduce students to important methods of economic research used in macroeconomics. The properties of data and methods of economic research in macroeconomic modeling are discussed, e.g. difference equations and systems of difference equations, stationary time series, ARMA and ARIMA models. Co-integration methods for non-stationary time series, Granger-Engle and Johansen methods, error correction models, VAR models.

Why some nations are rich and others poor is probably the most important question in economics. Economists have hypothesized that economies based largely on a market economy will grow faster and create better standard of living than those based less on the market. But is this hypothesis really correct? Without comprehensive measurements, it may be difficult to answer the question convincingly.

In recent decades, economists, under the auspices of the new institutional economics or political economy, have published a number of studies attempting to assess the impact of economic, political and legal institutions on the economic performance of economies. These studies seem to support the hypothesis that institutions have a major impact on economic growth and therefore explain the different value of production countries. Other factors, such as culture, climate and geographical location, can also be important, but the characteristics of institutions generally seem to have a greater explanatory power than the others. Research also seems to show a greater link between economic growth and economic institutions than with political institutions, such as democracy. Discussions among scholars about which of these institutions are most important for the growth of economies and about the relationship between cause and effect in economic and political organization are far from over.

Economics of politics looks at politics and governance from the perspective of economics. Economic theories are presented in the context of their social environment. Here we look at social institutions; their origin and development is the topic of discussion. Emphasis is placed on trying to explain how different institutional environments affect the economic behavior of individuals and how different institutions have different effects on the functioning of economies. We discuss transaction costs and the organization of property rights and show how both shape individual behavior, business behavior, and economic growth and the well-being of societies. We also discusses the impact of uncertainty and risk on decisions and how limited knowledge and transaction costs affect and limit reform. The activities of the state and the rules of the game of politics are also be discussed.

The course introduces general equilibrium macroeconomic models used in simulations and forecasting. The course covers so-called DSGE models as well as their simulations using the computer program Dynare, which has been developed by European central banks. Before introducing DSGE models to students, the course covers RBC and New-Keynesian models, which DSGE models are based on, their microceconomic foundations, estimation and use in economic analysis. Þá er fjallað um einvíð og fjölvíð tímaraðalíkön og not þeirra í spágerð.

The course covers theories of consumption, saving and investment as well as mathematical techniques used to solve modern macroeconomic modes, i.e. dynamic optimization, both in continuous and discrete time. In addition to that, the course covers general equilibrium in macroeconomic models and introduces two general equilibrium modes; the Ramsey model and the Diamond model, and applications of the models in fiscal policy and pension systems.

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 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.

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 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 course discusses important macroeconomic models used in the work of economists and those used for analysis, as well as teaching students the mathematical methods used to derive equilibrium conditions in them, i.e. time-dependent optimization in continuous time and solution of systems of differential equations. Among other things consumption and investment theories and the Ramsey and Diamond models are discussed, and they are used to analyze the effects of government fiscal policies and to analyze pension fund issues.

Major figures in the history of economic thought and the tools of analysis they created. Emphasis on the development of economic ideas, especially classical, neo-classical and modern economic theory.

his course is based on the foundation laid down in previous courses in microeconomics. The main goal of the course is to introduce and analyze strategic behavior. This includes market failures, asymmetric information externalities and other situations that modern firms need to respond to. The course has a special emphasis on digital markets, including the unique features of data and digital solutions, digital platforms / multi-sided markets and blockchain, alongside a discussion of old and new

Introduces some of the basic ideas of the toolkit of public choice and how economic models are used to help understand political processes and institutions. Applies the public choice approach to study such topics as individual and collective rationality, voting, political party competition, formation of coalitions, and organization of the legislature. Further application are on the causes and consequences of governmental growth, behavior of public bureaucracies, and economic reasoning behind constitutional limitations on size and growth of government.

Theoretical and institutional analysis of government expenditure, taxation,and debt management. Externalities and political decision making. Allocative and distributional effects of government measures. Principles ofbenefit-cost analysis for government decisions. Efficient and equitable taxation, and optimal tax theory

The course has the objective of (a) providing a framework for analysing macroeconomic policy issues, (b) familiarizing students with some of the most important macroeconomic policy issues faced by Western countries, and (c) describing some of the policies that could be used to tackle these problems. The course will teach students to discuss policy problems, write short memos on the essence of such problems and write a longer paper on one particular macroeconomic policy problem.

The first topic of the course is an introduction to a framework for modelling the role of government in the economy. That is followed by a discussion of eight topics: The economic policy of the new President of the United States and its potential impact on other countries; monetary policy, inflation, and interest rates; public debt and government budget deficits; declining productivity growth in Western countries; savings and the economic implications of aging populations; financial bubbles and crises; externalities and environmental issues; and the provision of public services, such as national defense.

This course covers the basic elements of environmental economics. The properties of optimal environmental use are examined and the ability or inability of the market system to generate the optimal utilization investigated. Environmental management, i.e. methods for inducing optimal environmental use, are discussed both generally and in the context of particular examples. Finally, various methods for environmental valuation and their use in environmental cost-benefit analysis are discussed.

The aim of the first part of the course is to introduce students to various techniques used in time series analysis, such as models for financial data (ARCH/GARCH/SV models), models with time varying parameters, the Kalman filter, and Bayesian estimation. In the second half of the course the main techniques used in machine learning and data science are presented, such as factor models, ridge and LASSO regressions, classification methods, regression trees, clustering and natural language processing as time permits. The emphasis is on presenting the theoretical foundations of the course subjects and their practical implementation in data analysis. Recommended prerequisites are introductory courses on probability and statistics, econometrics, macroeconometrics and the ability to perform data analysis in R.

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 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.

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 aim is to provide a theoretical as well as practical overview in financial economics. The efficient markets and the portfolio theory are covered as well as the Markowitz model. Risk, and risk assessment under uncertainty and using the utility function are introduced. Students will get practice in value assessment methods, CAPM, as well as fixed income analysis. Stock valuation and fundamentals of derivatives calculations such as the B&S model are covered. 
Projects are based on understanding of concepts introduced in the course and their usage.  In addition projects are based on Excel usage.

Basic concepts in probability and statistics based on univariate calculus. 

Topics: 
Sample space, events, probability, equal probability, independent events, conditional probability, Bayes rule, random variables, distribution, density, joint distribution, independent random variables, condistional distribution, mean, variance, covariance, correlation, law of large numbers, Bernoulli, binomial, Poisson, uniform, exponential and normal random variables. Central limit theorem. Poisson process. Random sample, statistics, the distribution of the sample mean and the sample variance. Point estimate, maximum likelihood estimator, mean square error, bias. Interval estimates and hypotheses testing form normal, binomial and exponential samples. Simple linear regression. Goodness of fit tests, test of independence.

Students will be introduced to basic concepts and theories of economics. The main characteristics of markets will be discussed. Furthermore, we will practice using the learned economics to systematically tackle various societal issues. The economic role of governments will be discussed and the effect of certain governmental interventions in market processes. At the end of the course students should have gained some proficiency in applying economic thinking and methods to solve simple economic problem.

The goal of the course is to build a solid foundation in using mathematical methods in economics. The course starts by discussing basic methods in mathematics such as powers and roots, equations and inequalities, sets and functions. Then important methods in mathematical economics are discussed such as vectors, matrixes, determinants, inverses, eigenvalues, eigenvectors, solving systems of linear equations, sets, mappings and functions, differentitation, Taylor's rule and Taylor approximation, integration, static unconstrained optimization.

The course aims to give the students an insight into the main theories, concepts, topics, and principles of macroeconomics and macroeconomic activity. The course stresses both the analytical content and applied usefulness of the topics covered and how they relate to various current economic issues at home and abroad. A sound knowledge of macroeconomics prepares students for various other economics courses, and for life.

The aim of this course is threefold. First, to introduce the fundamentals of financial accounting in order for the students being able to read and understand corporate financial statements. Second, teach the students to analyse and calculate the main important multiples from financial statements as well as being able to interpret their meaning to potential users of this information. Third, the students should be able to conduct fair value estimates of the corporate entities using information from their financial accounts.

Students are assumed to have taken courses in statistics and mathematics corresponding to those taught at the first year in economics. Most of the course is concerned with classical regression theory, i.e. ordinary least squares. The course discussed the various assumptions underlying that model, and the various failures of these assumptions, i.e. serial correlation, heteroskedasticity, multicollinearity and simultaneity. Emphasis is placed on practical assignments, where students learn how to use statistical software and how to interpret their own results.

Intermediate macroeconomics. Main topics: National income accounting. Economic growth. Unemployment and inflation. Aggregate demand and the goods market. Public finance and fiscal policy. Aggregate supply and the labour market. Monetary and fiscal policy in an open economy.

Intermediate microeconomic theory. Basic factors of price theory, uncertainty, including analysis of demand, costs of production and supply relationships, and price and output determination under various market structures, market failures and public choice.

Comparative statics. Maxima and minima: Linear and non-linear programming; the Kuhn-Tucker theorem. Differential and difference equations. Series and sequences. Dynamic economics. The emphasis is on the utilization of mathematical techniques to solve economic problems. Assignments.

The aim of the course is to increase students' knowledge and understanding of the use of statistical methods in economics, with focous on causal inference. The course covers panel data methods, instrumental variable regressions, difference-in-differences and regression discontinuity design.

The course is based on Microeconomics I and II, and students are furthermore required to have completed Mathematics I and Mathematics II. In Microeconomics III the emphasis is on broadening and deepening students' knowledge of economic theory. The focus is on the mathematical presentation of the theories covered in the prerequisite courses in microeconomics. Concepts covered include the effect of uncertainty on the behavior of consumers and producers and market equilibrium. Furthermore, specific markets are discussed, such as the labor market, markets for financial products and equity. Market failures, the economic value of the right of ownership, in addition to the political market, will be covered. An emphasis is placed on demonstrating the use of microeconomics and its methodology in reaching sound decisions on matters of economic issue.

The purpose of this course is to give insights into various aspects of the Icelandic economy, past and present. Among the topics discussed are economic development, population, the labour market, industrial organization and policy, the monetary system, the public sector and foreign trade. Special emphasis is placed on current issues in the Icelandic economy and economic policy, i.e., by writing papers on topical matters. The course is closely related to Economics I.

This main emphasis of the course is on the role of Central Banks in Economic Policy. The main channels of monetary policy are introduced and their effects on financial markets as well as the macroeconomy are discussed. 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 both with regard to price and financial stability. The second emphasis of the course is on 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 with foreign markets.

This course provides training in scientific methodology, especially that for research in economics and in presenting such results. Students will also be required to work on individual research projects and write reports as part of course assignment.

This course focuses on a holistic approach to project management. The content deals with planning, scheduling, organizing, and controlling projects--for example, product development, construction, information systems, new businesses, and special events. The course includes major topics of Strategy, Priorities, Organization, Project Tools, and Leadership. Primary class emphasis is on the project management process and tools. Project management is becoming increasingly more important in today's world. Mastery of key tools and concepts could give you a significant competitive advantage in the marketplace.

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.

This course starts with looking at interest rate markets and how the zero coupon curve is derived. Valuation of different kind of bonds is covered along with the characteristics and risk factors of the major listed bonds, with special emphasis on the Icelandic market. Next the valuation of derivatives is covered along with the main characteristics. Special emphasis is placed on futures/forwards, swaps and options.  The reasons behind derivatives trading are covered and what the main risk factors are.

Subject - Objective: The course will teach you the necessary skills to perform a thorough valuation of companies. Emphasis will be placed on company management and three methods will be taught: comparative analysis, business multipliers and cash flow analysis.

At the same time, emphasis will be placed on the elimination of share value, value added, value added value and yield.

The theory behind decisions of investors and corporations regarding building and managing asset and liability portfolios. Risk management of corporations will also be covered.

The course is taught in English

The learning path starts with overall orientation and definitions. The focus at first is on challenges in the external environment and how organizational effectiveness can be assessed. Then the focus is on understanding and analysing the structure of organizations and on what should be in the picture when an organizational structure is designed. Influences and challenges related to organizational design and ethical and societal challenges are reviewed. Innovation, knowledge, information, and decision making in the context of organizational change are also covered. Then the impact of artificial intelligence on the structure and working methods of organizations will be discussed.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

All information on final theses you will find in Ugla:

https://ugla.hi.is/cms/milli.php?sid=4221

Students fill in an application for a thesis supervisor to the faculty‘s thesis coordinator. More information in Course Catalog, "Information" - "Thesis". Under the guidance of the thesis supervisor, students submit a thesis proposal and subsequently write their thesis. The thesis must be submitted online no later than the specified dates that are announced before each graduation. The faculty can require that a student undergoes an oral examination on his thesis topic that determines part of the final grade for the thesis.

First part - international trade: Overview of international trade. Economic models of international trade. Reasons for and results of trade between countries, e.g. for wages and interest rates. Tariffs and other import barriers. Trade unions and the link between trade, economic growth and income distribution. Trade policies, i.e. tariffs and quotas.

Second part - international finance: Balance of payments and its composition. Purchasing power parity. Fixed and floating exchange rates in macroeconomic models: the Mundell-Fleming model, the Dornbusch model. Currency areas, financial crises.

The aim of the course is to introduce students to important methods of economic research used in macroeconomics. The properties of data and methods of economic research in macroeconomic modeling are discussed, e.g. difference equations and systems of difference equations, stationary time series, ARMA and ARIMA models. Co-integration methods for non-stationary time series, Granger-Engle and Johansen methods, error correction models, VAR models.

Why some nations are rich and others poor is probably the most important question in economics. Economists have hypothesized that economies based largely on a market economy will grow faster and create better standard of living than those based less on the market. But is this hypothesis really correct? Without comprehensive measurements, it may be difficult to answer the question convincingly.

In recent decades, economists, under the auspices of the new institutional economics or political economy, have published a number of studies attempting to assess the impact of economic, political and legal institutions on the economic performance of economies. These studies seem to support the hypothesis that institutions have a major impact on economic growth and therefore explain the different value of production countries. Other factors, such as culture, climate and geographical location, can also be important, but the characteristics of institutions generally seem to have a greater explanatory power than the others. Research also seems to show a greater link between economic growth and economic institutions than with political institutions, such as democracy. Discussions among scholars about which of these institutions are most important for the growth of economies and about the relationship between cause and effect in economic and political organization are far from over.

Economics of politics looks at politics and governance from the perspective of economics. Economic theories are presented in the context of their social environment. Here we look at social institutions; their origin and development is the topic of discussion. Emphasis is placed on trying to explain how different institutional environments affect the economic behavior of individuals and how different institutions have different effects on the functioning of economies. We discuss transaction costs and the organization of property rights and show how both shape individual behavior, business behavior, and economic growth and the well-being of societies. We also discusses the impact of uncertainty and risk on decisions and how limited knowledge and transaction costs affect and limit reform. The activities of the state and the rules of the game of politics are also be discussed.

The course introduces general equilibrium macroeconomic models used in simulations and forecasting. The course covers so-called DSGE models as well as their simulations using the computer program Dynare, which has been developed by European central banks. Before introducing DSGE models to students, the course covers RBC and New-Keynesian models, which DSGE models are based on, their microceconomic foundations, estimation and use in economic analysis. Þá er fjallað um einvíð og fjölvíð tímaraðalíkön og not þeirra í spágerð.

The course covers theories of consumption, saving and investment as well as mathematical techniques used to solve modern macroeconomic modes, i.e. dynamic optimization, both in continuous and discrete time. In addition to that, the course covers general equilibrium in macroeconomic models and introduces two general equilibrium modes; the Ramsey model and the Diamond model, and applications of the models in fiscal policy and pension systems.

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 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.

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 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 course discusses important macroeconomic models used in the work of economists and those used for analysis, as well as teaching students the mathematical methods used to derive equilibrium conditions in them, i.e. time-dependent optimization in continuous time and solution of systems of differential equations. Among other things consumption and investment theories and the Ramsey and Diamond models are discussed, and they are used to analyze the effects of government fiscal policies and to analyze pension fund issues.

Major figures in the history of economic thought and the tools of analysis they created. Emphasis on the development of economic ideas, especially classical, neo-classical and modern economic theory.

his course is based on the foundation laid down in previous courses in microeconomics. The main goal of the course is to introduce and analyze strategic behavior. This includes market failures, asymmetric information externalities and other situations that modern firms need to respond to. The course has a special emphasis on digital markets, including the unique features of data and digital solutions, digital platforms / multi-sided markets and blockchain, alongside a discussion of old and new

Introduces some of the basic ideas of the toolkit of public choice and how economic models are used to help understand political processes and institutions. Applies the public choice approach to study such topics as individual and collective rationality, voting, political party competition, formation of coalitions, and organization of the legislature. Further application are on the causes and consequences of governmental growth, behavior of public bureaucracies, and economic reasoning behind constitutional limitations on size and growth of government.

Theoretical and institutional analysis of government expenditure, taxation,and debt management. Externalities and political decision making. Allocative and distributional effects of government measures. Principles ofbenefit-cost analysis for government decisions. Efficient and equitable taxation, and optimal tax theory

The course has the objective of (a) providing a framework for analysing macroeconomic policy issues, (b) familiarizing students with some of the most important macroeconomic policy issues faced by Western countries, and (c) describing some of the policies that could be used to tackle these problems. The course will teach students to discuss policy problems, write short memos on the essence of such problems and write a longer paper on one particular macroeconomic policy problem.

The first topic of the course is an introduction to a framework for modelling the role of government in the economy. That is followed by a discussion of eight topics: The economic policy of the new President of the United States and its potential impact on other countries; monetary policy, inflation, and interest rates; public debt and government budget deficits; declining productivity growth in Western countries; savings and the economic implications of aging populations; financial bubbles and crises; externalities and environmental issues; and the provision of public services, such as national defense.

This course covers the basic elements of environmental economics. The properties of optimal environmental use are examined and the ability or inability of the market system to generate the optimal utilization investigated. Environmental management, i.e. methods for inducing optimal environmental use, are discussed both generally and in the context of particular examples. Finally, various methods for environmental valuation and their use in environmental cost-benefit analysis are discussed.

The aim of the first part of the course is to introduce students to various techniques used in time series analysis, such as models for financial data (ARCH/GARCH/SV models), models with time varying parameters, the Kalman filter, and Bayesian estimation. In the second half of the course the main techniques used in machine learning and data science are presented, such as factor models, ridge and LASSO regressions, classification methods, regression trees, clustering and natural language processing as time permits. The emphasis is on presenting the theoretical foundations of the course subjects and their practical implementation in data analysis. Recommended prerequisites are introductory courses on probability and statistics, econometrics, macroeconometrics and the ability to perform data analysis in R.

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 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.

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.