Courses in Economics
(Division 358: arranged by groups)

A. Introductory Courses

Students who earned credit for Economics 201 or 400 prior to Fall Term 1982 are permitted to enter all those upper-level courses whose prerequisites are designated Economics 201 and 202. Students who elect Economics 201 in Fall Term 1982 and thereafter will be required to take its sequel, Economics 202, in order to take any advanced course in the Economics Department.

201. Principles of Economics I. Open to second-term freshmen. No credit granted to those who have completed 400. (4). (SS).

Economics 201 is open to first-term freshmen in the Honors Program and to non-Honors second-term freshmen. Freshmen who believe that their backgrounds and interests are such that they would like to elect this course should discuss the matter with a counselor before making the election. Economics 201 is the first part of a two-term introduction to economics. Both 201 and 202 are required as prerequisites to the concentration and to upper level courses in economics. In Economics 201, the fundamental theories and concepts of microeconomics are described and are used to analyze problems of current interest. Among the major topics discussed are how consumer and producer preferences interact to determine the price and quantity offered of individual products and resources, the different types of markets within which firms operate, the causes and remedies of such market failures as monopoly and spillover costs, and problems related to the distribution of income. Students may elect either of two alternative formats in which the course is offered: (1) one large weekly lecture (about 400 students) taught by a professor and meeting one hour a week plus small discussion sections (about 35 students) taught by a teaching assistant and meeting three hours a week. Sections 001-025 are in this format; (2) large lecture (about 160 students) taught by a professor and meeting three hours a week plus one small discussion section (about 40 students) taught by a teaching assistant and meeting one hour a week. Sections 026-030 and 031-035 are in this format. (Shepherd, Whatley, Crafton)

400. Modern Economic Society. For upperclass and graduate students without prior credit for principles of economics. (4). (SS).

The basic ideas of economics: production, national income, depressions and employment, markets, prices, competition, and monopoly are developed carefully and applied to leading problems of broad public interest. Similar to Econ. 201 but covering somewhat more material at a somewhat faster pace. (Putallaz)

B. Economic Theory and Statistics

401. Intermediate Microeconomic Theory. Econ. 201 and 202, and Math. 115. (3). (SS).
Section 001.
Students who have not had math at the level of Math 215 should consult with instructor before registering for the class. This section will cover the usual topics of intermediate economic theory but will use calculus more extensively. Students will be assumed to be thoroughly comfortable with calculus of a single variable and acquainted with calculus of several variables. The course will attempt to illustrate the great power of mathematical methods for understanding economic and social problems. Using calculus freely enables us to deal with some interesting applications that must be either touched lightly or left out of most intermediate theory courses. These include game theory, linear programming, monopolistic competition, and risk and uncertainty. Term papers will be assigned. Students should be willing to work harder than in other 401 sections. Students taking this section will be better prepared to take Economics 403 in the future. (Bergstrom)

Sections 002-006. This course in microeconomics deals with theoretical analysis of consumers, firms, markets and price determination. The analysis is quite rigorous, using the tools of algebra, geometry, and elementary calculus in constructing models. Prerequisites include one term of calculus, though instructors differ considerably in the extent to which they use it. Students should therefore consult the instructors before selecting a section. The course is intended primarily for majors and should be taken early in the concentration program since it is a prerequisite for many other courses in Economics. It is not recommended that 401 and 402 be taken in the same term. A lecture format is the predominant teaching mode, with grading based on midterm and final examinations, though again there is some variation among instructors. (Blume, Brazer, Feldstein, Varian)

402. Intermediate Macroeconomic Theory. Econ. 201 and 202, and Math. 115. (3). (SS).

This course in macroeconomics is concerned with the theory, measurement, and control of broad economic aggregates such as national income, employment, and price level. Economic analysis is used to understand the forces that determine the level of economic activity and its fluctuations, the price level, employment and unemployment, and public policies related to those economic variables. Economics 402 is a prerequisite for many advanced courses offered by the Economics Department. Concentrators are required to elect this course and are encouraged to complete Economics 402 early in the concentration program. It is not recommended that Economics 401 and 402 be elected during the same term. A lecture format is the predominant teaching mode although this varies according to the instructor. The course grade is based on midterm and final examinations and, in some cases, problem sets and papers. (Deardorff, Ackley, Mueller)

404. Statistics for Economists. Econ. 201 and 202; or permission of instructor. No credit granted to those who have completed 405. (4). (SS).

This course is designed to equip students to read empirical literature in economics and other social sciences. The topics covered include variance analysis and regression, emphasizing multiple regression and analysis of variance by means of dummy variables. The description and analysis of data take precedence over probability and the theory of inference. Lecture, homework, and examination materials are drawn from data collected by the Institute for Social Research. There are 3 informal lecture/recitations and one problem session per week. Grades are based on two midterms and a final exam. Text: Friedman, Pisani, Purves, Statistics. The course, which is self-contained, does not normally serve as a prerequisite to Econ. 406.

405/Statistics 405. Introduction to Statistics. Math. 115 or permission of instructor. Juniors and seniors may elect this course concurrently with Econ. 201 or 202. No credit granted to those who have completed 404. (4). (SS).

This course has originally been designed for economics concentrators but the discussion is sufficiently general to serve noneconomics concentrators just as well. The emphasis is on understanding rather than on "cookbook" applications. Students are expected to know basic algebra and to have some understanding of the concept of derivatives and integrals. Since the content of the course does not extend much beyond establishing the foundations of statistical inference, it is recommended that after finishing the course students elect to take Economics 406 or a similar course in the Statistics Department to learn some applications and get some experience with computer work. While Economics 405 is not required for an economics concentration, it is difficult to see how anyone today can be regarded as an economist without some knowledge of statistics. Employers typically ask for some training in statistics, and letters from graduates often express regret for not having had more statistics. (Kmenta)

406. Introduction to Econometrics. Econ. 405 or the equivalent. (4). (SS).

Economics 406 is designed to introduce students to the theory and practice of multivariable statistical analysis of economic relationships. Hypotheses testing as well as the construction and use of econometric models are emphasized. Computer exercises are used extensively to provide a stimulating learning environment. Student projects are encouraged. Students should be familiar with elementary calculus.

407. Marxist Economics. Econ. 201 and 202. (3). (SS).

The course surveys major themes in Marxist economic and social analysis: the philosophy of historical materialism, capitalist production, accumulation, class structure, women and capitalism, organization of work, and working class life. Readings are drawn from the works of Marx and Engels as well as modern Marxist sources. Grades will be based on a Lee ping journal. The journal assignments will encourage critical thinking about capitalist society, conventional economic and social theory, and Marxism. Class format will be mixed lecture and discussion. Does not fulfill departmental sequence requirement. (L. Anderson)

C. Economic Behavior

408. Consumer Economics. Econ. 201 and 202. (3). (SS).

Principles of economics applied to individual and household decisions. Basic notions like opportunity cost, imputed values of non-money flows, present values of future sums, expected values of probabilistic events, and the irrelevance of past (sunk) costs, are applied to decisions about investment in self (education, etc.), occupation and work, housing and residential location, financial planning, borrowing, investment of savings, consumer durables, risk and insurance, medical care, and other expenditures. The role of consumer information, education, and protestion are discussed. Text by J. Morgan and G. Duncan, The Economics of Personal Choice, University of Michigan Press, 1980, plus reserve supplements on insurance. (Morgan)

D. Economic Stability and Growth

410. Money and the Economy. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 411 or 412. (3). (SS).

This course deals with the role of money in the economy; banks and financial markets; the main factors affecting economic activity, prices, and other aggregate variables; and government policies to promote full employment, price stability, and growth. The course is for students who have had an introductory economics course (201 or 400) and who do not intend to take either course 411 or 412. It is directed toward the kind of understanding important for informed citizenship and intelligent private decisions rather than that needed for advanced work in economics. It is a lecture course with midterm and final examinations and some written homework problems. (Teigen)

411. Money and Banking. Econ. 402 or permission of instructor. No credit granted to those who have completed or are enrolled in 410. (3). (SS).

This course focuses on monetary theory and the structure of the banking and financial systems of the United States. The course uses a combined lecture and discussion format. There is a midterm, a final examination, homework assignments, and reading assignments from a text and other selected readings. (Holbrook)

E. Labor Economics

423/Women's Studies 423. The Economic Status of Women. Econ. 201 and 202. (3). (SS).

This course focuses on the changing economic role and status of American women within the context of both the family and the larger economic society. One major focus of the course is the changing pattern in labor force participation of women including the historical trends which underlie the great increase in the number and proportion of working women. Related issues include some possible explanations for the heavy concentration of women workers in a few predominantly female occupations and the possible determinants of current unfavorable male/female wage ratios. In each case, the extent to which discrimination might be an explanation is considered. Another major focus of the course is the impact that contemporary changes in family life have had on the economic status of women. Some of the changes considered are changes in fertility, in marriage patterns, in divorce rates, and in sex role patterns within the family. The economic issues associated with different family life styles are examined, and some attention is given to the economic problems of families with female family heads and to the economic problems experienced by dual career families. Other course topics include the problem of time allocation for women combining family life with full time work, the need for some flexibility in working conditions for married women, and the extent to which women are treated differently from men in such matters as pension rights, social security benefits, and access to credit. Public policies such as affirmative action and the equal rights amendment which are designed to improve the economic status of women are also discussed. Some consideration is given to the comparative economic status of women in other countries. The course format includes lectures on selected topics with considerable time allowed for discussion. (Freedman)

F. Industrial Organization and Public Control

431. Industrial Organization and Performance. Econ. 401. No credit granted to those who have completed or are enrolled in 430. (3). (SS).

A thorough treatment of the conditions of competition and monopoly in modern industry. Students learn to analyze market structure, behavior, and performance. Scale economies innovation, and broader topics are also treated. Coverage includes concepts plus facts of American industry. This is a demanding course. It is especially suited to economics majors, pre-law, and/or advanced pre-business students. Recommended preparation (not prerequisite): Economics 401. The course leads into Economics 432, which is the policy half of the field. The format is informal lecture-discussion. There will be numerous outside speakers. The class will be strictly limited to 80 students. There will be 3 short papers, a quiz, a midterm and a final examination. Text: W. Shepherd, The Economics of Industrial Organization, and W. Adams, The Structure of American Industry. (Shepherd)

438/H.A. 661 (Public Health). Economics of Health Services. Econ. 401 or permission of instructor. (3). (SS).

This course is cross-listed in the School of Public Health (Public Health 661) and is usually elected by second-year graduate students in Public Health who have some background both in the United States health care system and in microeconomics. The purpose of the course is to apply the tools of economics to the field of medical care. Course topics include the demand for medical care, the markets for hospital care and hospital services, the performance of these sectors of the health care system and reasons for this performance, proposed policy changes in the medical care sector in an effort to improve efficiency, an analysis of medical and dental education, and a discussion of alternative plans for national health insurance as a means of improving equality in the distribution and receipt of medical care services. (Feldstein)

G. International Economics

441. International Trade Theory. Econ. 401 or the equivalent. No credit granted to those who have completed or are enrolled in 440. (3). (SS).

Static and dynamic determinants of comparative advantage; trade policy and economic welfare; selected topics. Two lectures and one required section meeting weekly. (Stern)

H. Comparative Economic Systems

450. Comparative Economic Systems. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 451. (3). (SS).

Theoretical models and case studies of selected aspects of different economic systems, including (1) capitalist regulated market economies, (2) socialist regulated market economies, and (3) socialist centrally planned economies. Assigned readings (about 800 pages) and lectures. Two examinations. A demanding course suitable for students with above-average grades in prerequisite course. Not in Departmental concentration sequence in Comparative Economic Systems. (Bornstein)

453. The European Economy. Econ. 201 and 202. (3). (SS).

This course deals with economic policy in Western Europe since World War II. I will emphasize the impact of governmental behavior on the structure and performance of product markets, labor markets, and financial markets. A substantial research paper (20-30 pages) is required. So is a final examination. Readings will be drawn from a variety of primary sources rather than from a textbook. Expertise in a foreign language is desirable (for the paper) but not required. (Adams)

456. The Soviet Economy. Econ. 201 and 202. (3). (SS).

A comprehensive and intensive analysis of the Soviet economy, including (1) development since 1917; (2) operation and problems in regard to planning, pricing, finance, management, labor, agriculture, and foreign economic relations; and (3) assessment of economic performance. Assigned readings and lectures. Texts include Marx, Engels, and Lenin, The Essential Left; Gregory and Stuart, Soviet Economic Structure and Performance, second edition (1981); and Bornstein, The Soviet Economy: Continuity and Change (1981). A demanding course suitable for students with above-average grades in prerequisite course. May be used (along with Econ. 451) for departmental concentration sequence in Comparative Economic Systems. (Bornstein)

I. Economic Development and National Economies

461. The Economics of Development I. Econ. 402 or permission of instructor. No credit granted to those who have completed or are enrolled in 460. (3). (SS).

This is the first course in a two-term sequence on economic development, intended primarily for upper division undergraduates from all fields and graduate students from outside economics. The second course in the sequence, Economics 462, need not be taken after this one but it is generally recommended. Economics 461 will involve a general introduction to the subject of economic development (and underdevelopment) that includes theoretical institutional, and historical perspectives. We will discuss problems of human resources, agricultural development, industrialization and trade, income distribution as well as development planning and other policy issues. The requirements of the course will include a midterm and final examination, as well as a short paper. The required text is Todaro, Michael P., Economic Development in the Third World (New York, Longman, 1977). (Mueller)

K. Public Finance

481. Government Expenditures. Econ. 401. No credit granted to those who have completed or are enrolled in 480. (3). (SS).

Economics 481 is intended primarily for economics concentrators. It makes extensive use of elementary calculus and intermediate microeconomics. A strong background in both of these areas is essential for understanding the material. Students may take this course in conjunction with Economics 482 to fulfill departmental concentration requirements for advanced courses in a field. This course is concerned with non-market solutions to allocation problems arising from social interaction. In addition to studying government expenditures and interventions, we examine the theory of decisions in such groups as voluntary organizations, firms and families. Specific topics to be treated include the theory of public goods, externalities and legal liability, formal models of voting systems, benefit-cost analysis, preference revelation, measurement of demand for public goods, the theory of marriage, the theory of clubs, and applications of game theory to public choice. Emphasis will be theoretical rather than institutional. (Bergstrom)

482. Government Revenues. Econ. 401. No credit granted to those who have completed or are enrolled in 480. (3). (SS).

The course will cover the economics of taxation at the federal, state, and local levels. Special emphasis will be placed on the effects of different types of taxes on economic behavior. For example, we will spend a considerable amount of time considering such issues as the effect of the corporate income tax on investment and the effect of property taxes on industrial location. We will also consider a number of proposed tax reforms, again at all levels of government, and we will also discuss the economics of the tax limitation movement. The major theme of the course will be identification of "optimal" tax structures and explanations of why these may not obtain in practice. The grade will be based on a midterm, a final, several very short papers, and a term paper. (Courant)

L. Economic History

493/Hist. 493. European Economic History. Econ. 201 and 202. (3). (SS).

This course surveys the economic development of Europe from medieval times to the 20th century. The main emphasis is on Western Europe since the beginning of the Industrial Revolution. The course concentrates on topics of two types. Some topics have stimulated debates involving quantification and explicit application of economic theory the patterns of economic growth accompanying the onset of modern industrialization, differences in growth between industrialized countries, the role of banks, the relation between population and economic growth, and the causes of the depression of the 1930's. Other issues have been important from the point of view of political economy the standard of living of workers early in the industrial revolution, the sources of capital for industrialization, and the causes of late 19th century European imperialism. Students should know economics at the 400 or 201 level. Econ. 493 is part of the economic history sequence. Term paper, midterm, and final exam are required. Lecture. (Webb)

M. Honors Program

497. Senior Honors Proseminar. Open only to seniors admitted to the Honors concentration in economics. (3). (SS).

This is the first semester of a two-semester sequence (Economics 497-498) in which Honors students formulate and carry out a substantial research project culminating in a thesis. Students are expected to complete a detailed thesis proposal, including an annotated bibliography, by the end of the first semester. Each student will also be expected to make an oral presentation based on work in progress. Credit is given separately for Economics 497 and Economics 498. (Weisskopf)

P. Interdisciplinary Survey Courses

395/Hist. 332/Poli. Sci. 395/REES 395/Slavic 395. Survey of the Soviet Union. May not be included in the minimum 24 credits required for a concentration in economics. (4). (SS).

See REES 395. (Gitelman)


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