Postgraduate Diploma in Applied Economics

Purpose

The qualification has been designed with the primary purpose of providing holders of the Advanced Diploma in Economics, certain categories of graduates, as well as practising economists in the private and public sector, with the opportunity to gain a deeper understanding of micro and macroeconomic theory, and to reflect critically on economic practices and applications. This includes "building intuition" and competence in the verification (testing), development and application of economic models used to explain the behaviour of governments, consumers, businesses and markets, as well as the econometric (i.e. mathematical) tools to do so. In addition, candidates will also get the opportunity to conduct field work in economics by applying relevant economic survey techniques.

Rationale

There is an increasing demand for knowledgeable and highly skilled economists familiar with micro and macroeconomic policies, practices and applications in the world of finance and economics. One just needs to consult the readily available literature and websites on careers in finance to appreciate how great the need is for well-qualified economists, especially at postgraduate level. These include careers in commercial banking, corporate finance, financial planning, hedge funds, insurance, investment banking, money management, private equity, real estate and consulting, to name but a few.

In addition, it is to be noted that international economic and political interests are shifting to Africa and services of professional economists for bilateral and multilateral assistance programmes will be keenly sought. South African economists need to be prepared to take their place on these programmes. As Dube (2012) warns: "...while the sands of global economic governance are shifting" the G7/8 still has significant power in the articulation of norms and rules in the global economic system.

These issues are of particular importance to Africa for two reasons

South Africa finds itself as the only member of most of these influential groupings in the global economic system with the two particular examples that stand out being the G20 as well as the BRICS grouping; and as Africa is the last frontier for growth and given growth predictions for Africa, it is important to gain a foothold in the decision-making mechanisms and entrench that foothold. Both South Africa and the rest of the continent have in the past not been that active in the space of global economic governance. There is a need to develop and nurture a culture of involvement in the global economic system and harness Africa's full potential and power in these matters e.g. through such concerted African positions as was seen in the run-up to the appointment of the World Bank president in early 2012. If South Africa and Africa can influence the rules of the game then they can maximise their own space to make domestic economic policy. Otherwise the traditionally dominant actors will formulate the rules without reference to developing countries and specifically African interests. This risks constraining African policy space in unpredictable ways, and imposing domestic economic policy choices that may be inimical to pursuing sustainable and equitable development outcomes.

South Africa therefore needs a cohort of well-qualified and hands-on economists to secure its position in the world economy, making it a major player. The Postgraduate Diploma in Applied Economics aims to contribute to the realisation of this vision.

Recognition of Prior Learning (RPL)

Applicants who do not meet the admission criteria as stipulated, but who can demonstrate experiential or work-based learning at an equivalent level may be considered for RPL provided a proper structured assessment of the prior learning has been conducted. Such candidates may be required to broaden their knowledge base by enrolling for identified preliminary modules prior to admission or parallel modules after admission. Candidates may also apply for exemption from certain modules on the grounds of credits obtained through relevant programmes of study.

Entry Requirements

Learners must be in position of either of the following

• Advanced Diploma in Economics.
• Bachelor's Degree in Economics or an equivalent qualification in a cognate field of study.

The qualification consists of compulsory and elective modules with 20 Credits each at NQF Level 8 totalling 120 Credits.

Compulsory Modules

• Economics Survey Techniques.
• Economics Field Work Project.
• Applied Macroeconomics.
• Applied Microeconomics.

Elective Modules (Select any 2 modules)

• Economics for a Developing World.
• Economics of Money and Business.
• International Trade and Finance.
• Applied Econometrics.
• Economics of Local, Provincial and Central Government.

1. Apply economic theory and use quantitative techniques to address typical problems confronting business and government.
2. Evaluate and test economic models, and forecast and assess business and government policy options.
3. Demonstrate insight into the role of microeconomics in the economic decision-making process with a view to optimising economic performance.
4. Demonstrate knowledge of macroeconomic policy objectives and policy instruments as applied in a federal state in global context.
5. Demonstrate the ability to conduct economic surveys and make independent enquiry, the application of critical data analysis skills and the processing and communicating of results in a professionally acceptable manner.
6. Identify, reflect upon and address ethical issues that economists are faced with from time to time and within the contexts of varying value systems.
7. Demonstrate specialised knowledge and applied competence in any two particular fields of interest:

• Range: Economics for a Developing World, Economics of Money and Business, International Trade and Finance, Economics of Local, Provincial and Central Government and Applied Econometrics.

Associated Assessment Criteria for Exit Level Outcome 1

• Appropriate knowledge, methods of enquiry and a wide range of specialised skills and tools relating to the economic principle of satisfying unlimited needs with limited means are implemented and applied.
• Contemporary domestic, national and international economic issues and challenges confronting business and government are identified, conceptualised, analysed and addressed using estimation and quantitative techniques.

Associated Assessment Criteria for Exit Level Outcome 2

• Economic models are developed and intuitive explanations of the results are provided.
• Information infrastructure is competently utilised for accessing, processing, managing and storing information.
• Information is processed with due consideration of the applicability and limitations of software.

Associated Assessment Criteria for Exit Level Outcome 3

• The effects of specific market structures on microeconomic decision-making are investigated.
• Demand analysis with a view to economic forecasting is conducted taking due cognisance of production, market structures, pricing structures, the aspect of risk as well as the impact of government regulation.
• Economic models are developed and tested with a view to hypothesising about business and government policy options and producing practical, evidence-based business and public policy advice.

Associated Assessment Criteria for Exit Level Outcome 4

• Macroeconomic models are used to explain changes in output, employment, inflation and growth.
• The objectives of macroeconomic policy and policy instruments are related to globalisation.
• Domestic and global macroeconomic data are appraised and applied with a view to conducting macroeconomic analyses of contemporary challenges and issues.

Associated Assessment Criteria for Exit Level Outcome 5

• Investigative economic surveys and fact-finding activities/projects related to the selected subfields of micro- and/or macroeconomics are initiated, planned, managed and concluded appropriately, within an allocated time-frame.
• Appropriate survey design, data collection and processing techniques are demonstrated.
• Research findings are presented, trends identified, appropriate conclusions are made with clarity and precision and by using appropriate software, graphic and statistical techniques, format and academic style.
• Economic data is processed and critically reviewed, research findings presented identifying trends, drawing appropriate conclusions and communicating creative responses as part of an economic and financial management evaluation process.

Associated Assessment Criteria for Exit Level Outcome 6

• The results of economic analysis are related to ethical issues, for example that value standards or frameworks determine what counts as a benefit or a cost, or, that success or failure of an outcome can be determined either by practical consequences or moral idealism.
• The point is made that the relevance of economic analysis to policy-making depends on, in part at least, an individual's belief in a final source of ethical standards.
• Recognition that the debate in the ethics of Economics is ultimately one between egoism and altruism, between self-interest and self-less concern for the well-being of others.

Associated Assessment Criteria for Exit Level Outcome 7

• The intricate processes of economic development of industrialised nations and the evolution of new development paradigms among emerging economies, including South Africa are investigated, analysed and reported on.

Or

• Creative and coherent participation in the latest debates and discussions around the role of financial markets, institutions and financial regulation in the monetary system including the current state of money and banking locally and abroad.

Or

• The effects of various trade policies on the business environment and the global economy are evaluated with reference to international finance, exchange rates and the political economy.

Or

• Issues and aspects of contemporary thinking related to intergovernmental relations in a federal type of state are debated with special reference to centralisation and decentralisation.

Or

• Economic relationships are quantified, economic theory tested; economic outcomes forecast and well-specified econometric models formulated using econometric software as appropriate.

Integrated Assessment

The method of assessment may vary according to the module purpose, its subject matter and the teaching and learning approach adopted. Some modules are more theoretically oriented; others require a more practical, hands-on or applied approach. This will be reflected in the assessment instruments.

The assessment tasks will require learners to demonstrate applied competence, in an integrated way. Assessment will include a mixture of assignments and/or tasks during the semester, ranging from informal and formal formative assignments that include presentations and progress checks, to presentations and formal (summative) written tests that will take place during the contact period. In each of the modules, excluding the research project module, there will also be two major formal assignments and/or projects to be submitted during the course of the semester, and one 60-minute test. The purpose of these assessments will be two-fold:

• Formative and diagnostic, in order to provide feedback to learners and lecturers in order to facilitate improved learning.
• Summative, in order to test whether or not the learners have achieved the learning outcomes of the modules.