238 Lorch Hall

Professor Paul Courant, Chair
Professor James Levinsohn, Associate Chair for Administrative and Student Affairs
Professor Gary Solon, Associate Chair for Recruitment

May be elected as a departmental concentration program.


William James Adams, Industrial Organization, Western Europe
Theodore Bergstrom, Microeconomics, Public Finance
Charles Brown, Labor, Microeconomics
Paul Courant, Public Finance, Public Policy, Urban Economics
John Cross, Microeconomic Theory
Alan Deardorff, International, Macroeconomics
Roger Gordon, Public Finance, Econometrics
Edward Gramlich, Public Finance, Macroeconomics
Robert Holbrook, Money, Macroeconomics
E. Philip Howrey, Econometrics, Macroeconomics
Saul Hymans, Econometrics, Macroeconomics
George Johnson, Labor
John Laitner, Macroeconomics
David Lam, Development, Demography
Richard Porter, Environmental, Development, Microeconomics
Stephen Salant, Microeconomics, Natural Resources
Gary Saxonhouse, Japanese Economy, Econometrics, Development
Matthew Shapiro, Macroeconomics, Econometrics
Carl Simon, Microeconomics
Joel Slemrod, Public Finance
Gary Solon, Labor, Econometrics
Frank Stafford, Labor, Microeconomics
Robert Stern, International
Jan Svenjnar, Business Economics
Kathy Terrell, Business economics
Thomas Weisskopf, Political Economy
Warren Whatley, Economic History, Political Economy
Michelle White, Law, Public Finance
Robert Willis, Labor Demography

Associate Professors

Robert Barsky, Money, Macroeconomics
John Bound, Labor, Econometrics
Miles Kimball, Macroeconomics, Money
James Levinsohn, International, Development
Francine Lafontaine, Business Economics
Jeffrey MacKie-Mason, Public Finance, Econometrics
Ennio Stacchetti, Microeconomics

Assistant Professors

Susanto Basu, Macroeconomics
Kerwin Charles, Labor Economics
Yan Chen, Public Choice, Public Finance
Michael Chernew, Health Management and Policy
Richard Hirth, Health Management and Policy
Lutz Kilian, Econometrics, Macroeconomics
Margaret Levenstein, Economic History
David Li, Comparative Economic Systems
Albert Parks, Development Economics, China
David Roth, Microeconomics, Industrial Organization
Shinichi Sakata, Econometrics
Tayfun Sönmez, Microeconomics
Robert Thomas, Business

Adjunct Associate Professor

Sherrie Kossoudji, Development, Demography

Adjunct Assistant Professor

John Hussman, Money, International


Janet Gerson, Microeconomics
Frank Thompson, Political Economy
Janet Wolfe, Macroeconomics, Econometrics

Professors Emeriti

Gardner Ackley, W. H. Locke Anderson, Morris Bornstein, Robert Dernberger, Deborah Freedman, Daniel Fusfeld, Thomas Juster, Jan Kmenta, Harold Levinson, James Morgan, Eva Mueller, William Palmer, Peter Steiner, Wolfgang Stolper

Economic problems are central to modern society. Consequently, a broad understanding of the modern world requires some knowledge of economic systems. An individual's intelligent understanding of and participation in the solution of problems which face society is aided by an understanding of the point of view and techniques of analysis which have been developed by economists. The introductory courses (101 and 102) offered by the department are designed to provide basic knowledge as well as to serve as a foundation for other courses in economics for students who wish to pursue the subject at an intermediate or advanced level. A concentration in economics leads to a more detailed understanding of the modern economic world and provides a useful background for students seeking careers in law, business, government, journalism, and teaching. Students who wish to attain professional competence as economists in preparation for careers in research or in college or university teaching normally plan on graduate work in economics.

Prerequisites to Concentration. Economics 101 and 102 and Mathematics 115, each of which must be completed with a grade of at least C. Students with a serious interest in the study of economics are strongly encouraged to continue the study of calculus beyond Mathematics 115. Mathematics 116, 215, and 217 are recommended for students with an interest in quantitative economics. Students with a serious interest in advanced research should elect Economics 405 and 406.

Concentration Program. An economics concentration plan must include

  1. Economics 401 (Intermediate Microeconomics) and Economics 402 (Intermediate Macroeconomics), each completed with a grade of at least C-,

  2. Statistics. One of the following: Economics 405/Statistics 405 (Introduction to Statistics), Economics 404 (Statistics for Economists), or Statistics 426 (Introduction to Mathematical Statistics), and

  3. 15 additional credits in upper level (300+) economics courses, including at least 6 credits in courses with Economics 401 or Economics 402 as a prerequisite.

The statistics requirement may be waived, but only with the approval of an economics concentration advisor, for students who have already completed another satisfactory upper-level statistics course. In this case, the third concentration requirement above would be increased to 18 rather than 15 additional credits in upper-level economics.

Transfer credit is not normally granted for Economics 401. Students who wish to receive Economics 401 transfer credit for an intermediate microeconomics course elected elsewhere must perform satisfactorily on a departmental equivalency examination.

Any concentration courses to be taken outside the Ann Arbor campus of the University should be approved in advance by an economics concentration advisor. At least 12 credits in the concentration plan, including at least 3 of the credits in upper-level economics electives in courses with Economics 401 or Economics 402 as a prerequisite, must be taken at the Ann Arbor campus.

Students who have completed Economics 405/Statistics 405 or Statistics 426 are strongly encouraged to include Economics 406 (Introduction to Econometrics) as one of the electives in their concentration plan. Note that Mathematics 116 (Calculus II) is a prerequisite for Economics/Statistics 405 and that Mathematics 215 (Calculus III) and Mathematics/Statistics 425 (Introduction to Probability) are prerequisites for Statistics 426.

Economics 401, 402, and statistics are prerequisites to many upper-level economics courses and should be elected during the sophomore or junior year. Economics 401 should be elected before Economics 402.

Honors Concentration. Qualified students are encouraged to consider an Honors concentration in economics. The standards for admission are a cumulative grade point average of at least 3.5 and evidence of outstanding ability in economics. Application is made and admission is granted to the Honors concentration during the first term of the junior year.

Honors concentrators are required to complete the requirements for a regular concentration in economics. An Honors concentration plan must include Economics 405 and 406. In addition, Honors concentrators must complete a senior Honors thesis. The senior Honors thesis may be an extension of concentration coursework and normally includes original work completed by the student under the direction of a faculty advisor and the Director of the Honors Program in Economics. Honors concentrators are given priority in election of one section of Economics 495 (Seminar in Economics). Honors concentrators have an opportunity to elect Economics 498 (Honors Independent Research) in order to complete the senior Honors thesis during the senior year.

Advising. Students interested in a concentration in economics should consult an economics concentration advisor. Appointments are scheduled in the Undergraduate Economics Office (see below). Students are urged to consult with a concentration advisor each term before selecting courses for the following term.

Economics Undergraduate Office. The undergraduate office is located at 158 Lorch Hall (763-9242). The Student Services Assistant for the economics undergraduate program is available to answer questions about concentration requirements, course offerings, wait-list procedures, and other matters concerning the undergraduate program.

Accelerated Program in Economics and Public Policy (A.B.-M.P.P.). The Department of Economics and the School of Public Policy participate in a joint degree program in public policy. This program enables qualified students to complete the requirements for both the bachelor's degree with a concentration in economics and a two year master's degree program in public policy within a five year period. Application for admission to the accelerated program should be made during the junior year through the School of Public Policy (440 Lorch Hall; 764-3490). Students accepted into the program begin graduate work in public policy and administration in the senior year by electing the full sequence of core courses in the Public Policy Masters program. Many of the courses in the Public Policy core curriculum overlap concentration requirements in economics.

Students interested in the joint degree program should consult the School of Public Policy and an economics concentration advisor during the sophomore year.

Michigan Economic Society. The Michigan Economic Society (154 Lorch Hall, 763-5318) is the organization for undergraduate students in Economics. Student representatives to department committees are elected by MES members. MES provides informational meetings about careers for economics graduates, informal talks by faculty members, informal peer counseling, and social events. Undergraduate students are encouraged to join MES and avail themselves of its many services.

Prizes. The Sims Honor Scholarship in Economics, which carries a stipend of $500, is awarded yearly in the spring to the junior judged the most outstanding and promising economics concentrator.

The Harold D. Osterweil Prize in Economics, which carries an honorarium of $500, is awarded yearly to the most outstanding graduating senior in economics who has also shown a high degree of social awareness.

The John Elliot Parker Prize, which carries a stipend of $500, may be awarded yearly in the spring to an economics undergraduate and/or graduate student for an outstanding written contribution in the area of labor economics or human resources.

Half-Term Information. Some courses are offered in half terms for reduced credit. Refer to the Time Schedule for specific credit hour information.

Courses in Economics (Division 358)

A. Introductory Courses

101(201). Principles of Economics I. No credit granted to those who have completed or are enrolled in 400. I, II, IIIa, and IIIb. (4; 3 in the half-term). (SS). (QR/2).

102(202). Principles of Economics II. Econ. 101. No credit granted to those who have completed or are enrolled in Econ. 400. I, II, IIIa, and IIIb. (4; 3 in the half-term). (SS). (QR/2).

108. Introductory Microeconomics Workshop. First-year standing and concurrent enrollment in Economics 101. (1). (SS). Offered mandatory credit/no credit.

109. Laboratory Economics. (4). (SS). (QR/1).

195. Seminar in Introductory Economics. (3). (SS).

B. Economic Theory and Statistics

401. Intermediate Microeconomic Theory. Econ. 101 and 102, and Math. 115. (4). (SS). (QR/1).

402. Intermediate Macroeconomic Theory. Econ. 101 and 102, and Math. 115. (3). (SS). (QR/1).

403. Advanced Economic Theory. Econ. 401. (3). (Excl).

404. Statistics for Economists. Econ. 101 and 102 and Math. 115. No credit granted to those who have completed or are enrolled in Econ. 405 or Stat. 311, 402, or 412. (4). (Excl). (BS). (QR/1).

405/Stat. 405. Introduction to Statistics. Math. 116 or 118. Juniors and seniors may elect this course concurrently with Econ. 101 or 102. No credit granted to those who have completed or are enrolled in Stat. 311 or 412. Students with credit for Econ. 404 can only elect Econ. 405 for 2 credits and must have permission of instructor. (4). (MSA). (BS). (QR/1).

406. Introduction to Econometrics. Econ. 405 or Statistics 426. (4). (Excl). (BS).

409. Game Theory. Math. 217. (3). (Excl). (BS).

C. Monetary and Financial Economics

310. Money and Banking. Econ. 101 and 102. (3). (SS).

411. Monetary and Financial Theory. Econ. 402, and 404 or 405. (3). (Excl).

412. Topics in Macroeconomics. Econ. 402. (3). (Excl).

418. Business Cycles. Econ. 402. (3). (Excl).

435. Financial Economics. Econ. 401 and 405. (3). (Excl).

D. Labor Economics

320. Survey of Labor Economics. Econ. 101 and 102. No credit granted to those who have completed or are enrolled in Econ. 421 and/or 422. (3). (SS).

325/Poli. Sci. 439. Inequality in the United States. Econ. 101 or Poli. Sci. 111. (3). (SS).

421. Labor Economics I. Econ. 401. (3). (Excl).

422. The Structure of Labor Markets. Econ. 401. (3). (Excl).

E. Industrial Organization and Public Control

330. American Industries. Econ. 101 and 102. (3). (SS).

333. Economic Analysis of Industrial Policy. Econ. 101 and 102. (3). (SS).

431. Industrial Organization and Performance. Econ. 401. (3). (Excl).

432. Government Regulation of Industry. Econ. 401. (3). (Excl).

438/Health Management and Policy 661 (Public Health). Economics of Health Services. Econ. 401 or HMP 660. (3). (Excl).

F. International Economics

340. International Economics. Econ. 101 and 102. (3). (SS).

441. International Trade Theory. Econ. 401. (3). (Excl).

442. International Finance. Econ. 402. (3). (Excl).

G. Comparative Economic Systems and National Economies

350. Comparative Economic Systems. Econ. 101 and 102. No credit granted to those who have completed or are enrolled in 451. (3). (SS).

451. Comparative Analysis of Economic Systems. Econ. 401. No credit granted to those who have completed or are enrolled in 350. (3). (Excl).

453. The European Economy. Econ. 401. (3). (Excl).

454. Economics of Japan. Econ. 101 and 102. (3). (Excl).

455. The Economy of the People's Republic of China. Econ. 101 and 102. (3). (Excl).

457. Post-Socialist Transition in Central/Eastern Europe and the Former Soviet Union. Econ. 101 and 102. (3). (Excl).

H. Economic Development

360. The Developing Economies. Econ. 101 and 102. No credit granted to those who have completed or are enrolled in 461. (3). (SS).

461. The Economics of Development I. Econ. 401. No credit granted to those who have completed or are enrolled in 360. (3). (Excl).

462. The Economics of Development II. Econ. 401, and 360 or 461. (3). (Excl).

466. Economics of Population. Econ. 401. (3). (Excl).

I. Environmental Economics

370/NR&E 470. Natural Resource Economics. Econ. 101 and 102. No credit granted to those who have completed or are enrolled in Econ. 471 or 472. (3). (Excl).

471/NR&E 571. Environmental Economics. Econ. 401 or NR&E 570. (3). (Excl).

472. Intermediate Natural Resource Economics. Econ. 401 or NR&E 570. (3). (Excl).

J. Public Finance

380. Public Finance. Econ. 101 and 102. No credit granted to those who have completed or are enrolled in 481 or 482. (3). (SS).

481. Government Expenditures. Econ. 401. No credit granted to those who have completed or are enrolled in 380. (3). (Excl).

482. Government Revenues. Econ. 401. No credit granted to those who have completed or are enrolled in 380. (3). (Excl).

K. Economic History

491/Hist. 491. The History of the American Economy. Econ. 101 and 102. (3). (Excl).

493/Hist. 493. European Economic History. Econ. 101 and 102. (3). (Excl).

494/Hist. 494. Topics in Economic History. Econ. 101 and 102. (3). (Excl).

L. Other Topics in Economics

395. Topics in Economics and Economic Policy. Econ. 101 and 102. (1-3). (Excl). May be repeated for a total of 6 credits.

398. Strategy. Econ. 101. (3). (SS).

407. Marxist Economics. Econ. 101 and 102. (3). (Excl).

476/CAAS 457. Political Economy of Black America. Econ. 101. (3). (Excl).

483/Poli. Sci. 482. Positive Political Economy. Econ. 401. (3). (Excl).

485. Law and Economics. Econ. 401. (3). (Excl).

487. Urban Economics. Econ. 401. (3). (Excl).

490. Current Topics in Economics. Econ. 401, 402, 404 or 405. (3). (Excl).

573/Public Policy 573. Benefit-Cost Analysis. Econ. 555. (4). (Excl).

M. Honors Program, Seminars, and Independent Research

495. Seminar in Economics. Econ. 401, 402, and 404 or 405; and permission of instructor. (3). (Excl). May be elected for a total of 6 credits.

498. Honors Independent Research. Open only to students admitted to Honors concentration in economics. (1-4). (Excl). (INDEPENDENT). May be repeated for a total of 8 credits.

499. Independent Research. Written permission of staff member supervising research, and permission of Economics concentration advisor. (1-4). (Excl). (INDEPENDENT). May be elected for a total of 8 credits. No more than 4 credits may be used in concentration program.

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