While there are definitely a few commonalities with a lot of undergraduate economics degrees across New Zealand, you certainly shouldn't think of them all as the same.
Each university has entry requirements and an admission process, and won't even necessarily offer economics as a major in the same type of degree. You can actually study economics as a Bachelor of Arts, Bachelor of Science, Bachelor of Commerce, etc. and while these are all certainly economics degrees, you won't be awarded the same letters when you graduate!
What they will have in common is some of the main areas of study such as:
- Macroeconomics
- Microeconomics
- Econometrics
The courses you can specifically take as part of your degree will depend on the university itself and you may have opportunities to study areas like quantitative economics, the history of economics thought, and maths and statistics (though some students prefer studying Economics without maths). The courses on offer depend on the university, the staff members, and the expertise and research at the university.
Most economics courses start the same with first-year students studying the fundamentals of economics and having options to specialise later in their studies, but there have been talks about economics and how it's taught needing to change or at least reflect the modern realities of economics.
Moving Away from Neoclassical Economics
The neoclassical school of thought for economics is one of the most commonly taught in universities around the world and it's largely based on supply and demand and the idea that the actors in economic systems work to maximise their own profit. Obviously, that's a vast oversimplification of it, but this 20th-century thinking still remains some of the most popular to be taught to economics students.
There's one big flaw in neoclassical economics and it's that we act rationally when we make decisions, especially economic ones. As we'll see shortly, there are other schools of thought that don't work based on this idea.
This isn't just us taking a shot at neoclassical economics, but the issue with traditional economics teaching is that there's too much of a focus on it and the economic models derived from it. It's been suggested that economics graduates are leaving university knowing too much about neoclassical economics and not enough about the other schools of thought in economics.
The Post-Crash Economics Society
Students at Manchester University in the UK even founded the Post-Crash Economics Society, heavily criticising the way economics was being taught at the university and calling for changes to be made in the way economics is taught across the country.
Their arguments were featured in a 60-page report that reiterated the overreliance on neoclassical economics and how other economic schools of thought were being largely ignored or underrepresented in economics education.
Again, neoclassical economics isn't necessarily wrong or even something that shouldn't be taught to students, the students took umbrage with the fact that it's almost presented as being the only school of thought.
The students highlighted the 2008 financial crisis, something that can't be explained by neoclassical economics, meaning that other schools of thought are necessary.
In most social sciences, multiple schools of thought are necessary to fully explain phenomena and concepts and it's better to teach students about several schools of thought so that they work out which ones are useful and which aren't.
Their main arguments at the University of Manchester, which can also be applied to a lot of economics degrees around the world, were:
- Focusing too much on the neoclassical school of economic thought.
- Focusing too little on ethics and the consequences of economic policies.
- Focusing too little on the history of economic thought and major economic events.
The report was noticed by several key economists and the Head of Education at the Institute of Economic Affairs who supported the students and their efforts.
This group has inspired other groups to advocate change across the UK and around the world and more people are taking notice of the other schools of economic thought.
The Alternatives to Neoclassic Economics
You can't call out neoclassical economics and not provide any alternatives. Here are just a few of the other schools of thought:
- Post-Keynesian economics
- Institutional economics
- Marxist economics
- Ecological economics
Naturally, not every school of thought is created equal or even equally valid. A school of thought needs to be judged by its utility and how it can be used to understand, explain, and make decisions. However, no single school of thought fully explains every aspect of any social science so it's always useful to consider multiple schools of thought.
There are multiple ways to interpret economic data and world events. Depending on which economist you ask, their interpretations will likely vary according to their preferred school of economic thought.
It's important that students understand these various points of view and schools of thought and it also helps students become more employable. After all, very few people will likely end up in a workplace where everybody shares the same ideologies and ways of thinking.
Neoclassical Economic's Flaws
The main issue with neoclassical economics is how it assumes that decisions are made rationally when we have plenty of studies and a lot of evidence to prove this.
Behavioural economics, for example, tends to do a better job of explaining economics than neoclassical models when the actors are irrational people who make decisions based on their own biases, experiences, and even cultures.
Alternative Economic Schools of Thought
In addition to neoclassical economics, you could consider post-Keynesian economics. Like we said, other schools of thought are out there and the best economic degrees in New Zealand will be the ones that give students opportunities to study various economic schools of thought.
Students need opportunities to study various areas of economics, too, including:
- Monetary policy.
- Macroeconomics, including areas such as unemployment.
- The causes of economic growth and increased economic wealth.
- Fundamental economic models and concepts, from financial economics to the world economy.
After all, students need to understand the fundamentals of economics and build upon that knowledge and while neoclassical economics mightn't be able to explain everything, there's also something to be said for schools of thought that can help make certain phenomena more understandable.
Learn More About Economic Schools of Thought with Private Economics Tutors
To learn more about various economic schools of thought or get help with your economics studies at university, consider reaching out to private economics tutors.
On the Superprof website, for example, there are plenty of different economics tutors, each with their preferred school of thought and teaching approaches. With a bit of research (and making the most of the first free lesson that most tutors offer), you can find the ideal private tutor to help you.
There are three main ways to learn with a private tutor: face-to-face, online, or in a group. Each has its pros and cons and it's up to you to choose which works for you and your budget.
Face-to-face tutoring is the most cost-effective, but it's typically the most costly as you're paying for the tutor's expertise and time as well as their travel costs (if they travel to you). With face-to-face tutoring, however, you tend to get the best tuition and sessions that are fully tailored to you.
This means that if you're dreaming of landing one of the best jobs in economics, your tutor could not only help you with what you need to study, but they may even have experience and knowledge they could use to help you impress potential employers.
Online tutoring can offer a similar experience for academic subjects and while you probably wouldn't get the same kind of rugby coaching online as you would in person, with economics, there won't be too many differences.
Since online tutors don't have to travel to their students and can usually schedule more lessons each week because of reduced travel times, they tend to charge less than face-to-face tutors. Online tutoring is also useful as it allows you to broaden your search if you can't find any suitable in-person tutoring where you live or study.
Last but not least, group tutoring offers an excellent version of tutoring for those on a very tight budget as you can share the cost of tutoring with other students. Whether it's with friends and family, classmates, or strangers interested in learning more about economics, group tutoring offers a much more affordable solution. Just remember that with group classes, you won't necessarily enjoy all the benefits of being the only student in a session as you do with the other solutions.
Just remember to check what schools of economic thought they teach and that they don't rely too much on neoclassical economics!
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