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 1983 and thereafter will be required to take its sequel, Economics 202, in order to take any advanced course in the Economics Department. Economics 400, taken in Fall, 1982, and thereafter, does not normally fulfill the prerequisite for advanced courses in Economics.

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

Economics 201 concentrates on the microeconomics of the modern economy: how markets function under competitive conditions as well as with various other types of market control; the distribution of income and wealth; the public sector; socialism; and related topics of current interest. The course format consists of one hour of lecture each week (either section 001 or 002) given by the professor and three hours of section meetings each week (sections 003 to 034) given by a teaching assistant. 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. 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. (Fusfeld)

Section 018: Permission of Comprehensive Studies Program (CSP) . This section, which covers the complete course syllabus, is designed for students who want to be certain that they develop a thorough understanding of economic principles, are highly prepared for Economics 202, and are willing to devote the effort necessary to do so. Extra classtime is provided for in-depth analysis of central concepts. Therefore, enrollment in this CSP section will require additional time and effort for problem-solving and review.

202. Principles of Economics II. Econ. 201. No credit granted to those who have completed Econ. 400. (4). (SS).

Economics 202 is only open to students who have taken Economics 201 in Fall, 1982 or thereafter. Both 201 and 202 are required as prerequisites to the concentration and to upper-level courses in Economics. In Economics 202, the fundamental concepts and theories of macroeconomics are developed and used to analyze problems of current interest. The major concerns of this course are the determinants of GNP, unemployment, inflation, interest rates, and growth. The course format consists of one hour of lecture (either 001 or 002) each week by the professor and three hours of section meetings (003 to 025) each week by a teaching assistant. The section meetings are limited to 35 students. (Gramlich)

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

A one-term course which covers the basic principles of economics, including both microeconomic and macroeconomic analysis, the theory of production and cost, industrial organization, and input markets. Macroeconomic topics include the determination of national income, inflation and unemployment, money and banking, and stabilization policy. The course is aimed at upperclass and graduate students who are not majoring in economics. Students who wish to retain the options of further courses in economics or of economics as a possible major should take the two-term introductory course, Economics 201 and 202.

B. Economic Theory and Statistics

401. Intermediate Microeconomic Theory. Econ. 201 and 202, and Math. 115. (3). (SS).

This course in microeconomics deals with the theoretical analysis of consumers, firms, markets, and price determination. The analysis is rigorous, using the tools of algebra, geometry, and elementary calculus in constructing models. Prerequisites include one term of calculus. Economics 401 is a prerequisite for many other courses offered in Economics. Concentrators are required to elect this course and are encouraged to complete it early in their concentration program. It is not recommended that 401 and 402 be taken in the same term. It is predominantly a lecture course, with grades based on hour test(s) and final exam. (Gordon, Blume, Lam, Shepherd, Porter, Feldstein, White, Varian)

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

This course in macroeconomics deals with the theory, measurement, and control of broad economic aggregates such as national income, employment, and the price level. Rigorous analysis is used to understand the forces that determine the level of economic activity, inflation, unemployment, and public policies related to those economic variables. Prerequisites include one term of calculus. Economics 402 is a prerequisite for many other courses offered in Economics. Concentrators are required to elect this course and are encouraged to complete it early in their concentration program. It is not recommended that Economics 401 and 402 be elected during the same term. It is predominantly a lecture course, with grades based on hour test(s) and final exam. (Aschauer, Bental, Johnson, Miron, Richter)

403. Advanced Economic Theory. Econ. 401 and 402. (3). (SS).

One of the fundamental assumptions in much of the microeconomic theory taught in Econ 201 and Econ 401 is the assumption of perfect information. Since this assumption's veracity is questionable, many economists have recently turned to analyzing models without it. This work will be the focus of this course. Among the topics to be discussed are: screening and discrimination in labor and insurance markets, selling to consumers who are imperfectly informed about the prices other firms are charging or the actual quality of the product, search behavior by consumers and workers, and financial markets. For the most part, we will approach these topics in a rigorous manner. Readings will probably come from a course pack, possibly supplemented by A.M. Spence's Market Signalling. Economics 401 and 402 are prerequisites for this course. (Bagnoli)

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 elementary probability theory, statistical inference, and multiple regression analysis. The description and analysis of data are emphasized. There are two informal lecture/recitations and one problem session per week. Grades are based on two midterms and a final exam. The course, which is self-contained, does not normally serve as a prerequisite to Economics 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 basic calculus. 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)

C. Economic Stability and Growth

310(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 monetary factors in the economy, with special emphasis on the nature and functioning of financial institutions and financial markets and their role in affecting economic activity. Attention is given to the role of government, particularly in terms of monetary and fiscal policies and the institutions and instruments through which these policies are effected. The course is for students who have had an introductory economics course and who do not intend to take either Economics 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 assignments.

411. Money and Banking. Econ. 402 or permission of instructor. No credit granted to those who have completed or are enrolled in 310. (3). (SS).

This course focuses on monetary theory and the structure of the banking and financial systems of the United States. (Richter)

D. Labor Economics

320(420). Survey of Labor Economics. Econ. 201 and 202. Not open to those who have taken Econ. 421 and/or 422. (3). (SS).

This course surveys the demand and supply of labor, investment in human capital, market structure and the efficiency of labor markets, discrimination, collective bargaining, the distribution of income, and unemployment. A midterm and a final exam are required. (Brown)

421. Labor Economics I. Econ. 401. No credit granted to those who have completed or are enrolled in 320 or 326. (3). (SS).

This course deals with the economics of labor supply and demand, wage and employment determination, investment in education and training, and unemployment. The course develops microeconomic models of the labor market, presents relevant empirical evidence, and discusses applications to such policy issues as the work incentive effects of income maintenance programs and the employment effects of minimum wage legislation. Grades are based on midterm and final examinations. (Solon)

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)

425/Amer. Inst. 439/Poli. Sci. 439. Inequality in the United States. Econ.. 201 or Poli. Sci. 111. (3). (SS).

See American Institutions 439 for description. (Corcoran, Courant)

E. Industrial Organization and Public Control

330(430). Industrial Performance and Government Policy. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 431 or 432. (3). (SS).

This course offers a general introductory survey of the field of industrial organization and public policies. The topics covered include: (1) how markets are organized and how the organization affects the market's performance, and, (2) how government policy, antitrust law and regulation affects both the organization of the market and its performance. In other words, it examines the inefficiencies of private markets and how governmental policy can encourage industries to produce more efficiently. This course cannot be used as part of the two-course industrial organization sequence. (Shepherd)

431. Industrial Organization and Performance. Econ. 401. No credit granted to those who have completed or are enrolled in 330. (3). (SS).

The behavior and social performance of large industrial corporations. Classes will be conducted in the Socratic style. (Adams)

432. Government Regulation of Industry. Econ. 401. No credit granted to those who have completed or are enrolled in 330. (3). (SS).

This course studies government policies toward business. Government intervention in private business takes three forms in the U.S.: antitrust laws, direct regulation of prices and outputs, and safety and information regulation. In antitrust, we look at the laws and their enforcement on issues of monopolization, price fixing, mergers and other market restrictions. Direct economic regulation of specific industries is then examined. We will study the electric power, airline, securities brokerage, and telecommunication industries. Finally, we look at issues of unfair or deceptive advertising, health and safety standards for products and work places, and environmental protection. This course is the second part of the 431-432 sequence, but can be taken first with a moderate amount of extra work. Instruction: lecture/discussion. Evaluation: two 50-minute midterms and a two-hour final. Fulfills Junior-Senior writing requirement. (Borenstein)

439/Business Administration 335. Futures Markets: Analysis and Application. Econ. 401 and 404 or 405 or equivalent. (3). (Excl).

This course examines the economic and public policy issues surrounding futures markets. Futures trading takes place on an organized exchange and consists of the sale and purchase of a commodity or asset through the medium of highly standardized futures contracts. The course analyzes the cash and futures pricing of contracts traded on the major futures exchanges, such as stock indices, financial instruments, energy sources, foreign currencies, and agricultural commodities. Topics treated include: intertemporal pricing of goods under uncertainty and imperfect information; role these markets play in the management of risk for processors, distributors, producers, inventory holders, exporters, brokers, and bankers; the speculator's role in determining market liquidity and price stability; organization and evolution of the exchanges; innovations in contract design and the development of options trading; possibility of price manipulation and other market failures; need for and the performance of government regulation and exchange self-regulation; and empirical evaluation of market performance. Instruction: lecture/discussion with outside speakers involved in the market. Evaluation: midterm and final. This course is NOT part of the 431-432 sequence and cannot substitute for either of these courses. Prerequisites: Econ 401 and 404 or 405 (or their equivalent). (Hartzmark)

F. International Economics

441. International Trade Theory. Econ. 401 or the equivalent. No credit granted to those who have completed or are enrolled in 340. (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)

G. Comparative Economic Systems

350(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 and lectures. Two examinations. A demanding course suitable for students with above-average grades in prerequisite courses. Not in departmental concentration sequence in Comparative Economic Systems. (Bornstein)

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

Designed for students with a background in intermediate microeconomic theory. Covers: (1) methods and criteria for analyzing and comparing economic systems; (2) theoretical models and case studies of a capitalist market economy, a socialist market economy (with and without workers' management of firms), and a centrally planned economy; (3) selected common problems of different economic systems, including unemployment and inflation. Reading assignments in various sources; lectures. Two examinations. No papers. In departmental sequence in Comparative Economic Systems. (Dernberger)

453. The European Economy. Econ. 401 and 402, or P.I. (3). (SS).

The structure and performance of the Western European economies since World War II. Emphasis is placed on using international comparisons to evaluate the effects of governmental policies and national cultures on the behavior of firms and households. Classes will be conducted in the Socratic style. Grading will be based on two hour-exams, a final examination, and class participation. Prerequisites: Econ 401 and 402. Reading knowledge of a European language is recommended 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. Two examinations. A demanding course suitable for students with above-average grades in prerequisite courses. May be used (along with Econ. 451) for departmental concentration sequence in Comparative Economic Systems. (Bornstein)

H. 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 360. (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 an optional paper. (Mueller)

I. Urban and Environmental Economics

471. Economics of the Environment. Econ. 401. (3). (SS).

Environmental economics is the study of how to manage the environment in the best interests of society. We will discuss the structure of market failures and of policies to correct those failures in the environmental arena. Both efficiency and equity concerns will be addressed. The tradeoffs of various uses are analyzed throughout the course. There will be a midterm (25%), a cumulative final (50%), and a term paper (25%). The term paper will be based on an extended computer simulation exercise of a river pollution case that the class will carry out in teams. (Jones)

J. Public Finance

380(480). Public Finance. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 481 or 482. (3). (SS).

This course offers a general introductory survey of the field of public finance. The topics covered include: (1) when markets fail, (2) methods of government intervention, (3) program and project evaluation, (4) major Federal, State and Local taxes and their effects, and (5) intergovernmental financial relations. This course cannot be used as part of the two-course public finance sequence. A lecture/discussion format is used. (Sadka)

481. Government Expenditures. Econ. 401. No credit granted to those who have completed or are enrolled in 380. (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 property rights, public goods, externalities and legal liability, formal models of voting systems, benefit-cost analysis, preference revelation, measurement of demand for and supply of public goods, the theory of clubs, and the relationships among federal, state and local governments. (White)

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

Economic analysis of the equity and efficiency effects of major U.S. taxes, including the personal income tax, the corporate income tax, the social security tax, and the property tax. Examination of commonly proposed tax changes. Effects of debt and inflationary finance. Lecture method; midterm and final exams; no term paper. Text: J. Stiglitz, Economics of the Public Sector. (Gordon)

K. Economic History

491/Hist. 491. The History of the American Economy. Econ. 201 and 202. (3). (SS).

This course surveys the economic development of the United States from colonial times to the present. Includes an evaluation of the use of economic analysis in the study of history. Attention is also given to topics in political economy, such as the causes and effects of the Civil War, the basis of farmer and worker discontent, and government intervention in the Progressive and New Deal periods. The course requires a knowledge of economics on the level of Economics 201. Midterm and final, and several moderate-length term papers, are required. Lecture. (Whatley)

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

This course surveys the economic development of Europe from the eve of the industrial revolution through the formation of the Common Market. Topics include models of industrialization, agricultural development, population and labor supply, improvements in industrial technology, imperialism, and economic conflict and cooperation since 1918. Economics 493 is part of the economic history sequence for economics majors. Midterm, final, and several short papers are required. Lecture. (Webb)

L. Honors Program

498. Senior Honors Seminar. Open only to seniors admitted to Honors concentration in economics. (3). (Excl).

This is the second term of a two course sequence. The first course is Economics 497, the Junior Honors Seminar offered in the winter term of the preceding year. The Senior Honors Seminar is for senior undergraduates writing senior Honors theses. Class meetings are primarily devoted to student presentations of their thesis research in progress. Students are expected to submit their finished thesis by the last day of classes. Each student's grade for the course and levels of Honors achieved will depend entirely on the quality of the thesis, as evaluated by the course instructor and one other thesis advisor with whom the student has arranged to work. (Stafford)

O. Interdisciplinary Survey Courses

395/Hist. 332/Pol. Sci. 395/REES 395/Slavic 395/Soc. 392. 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 for description.

P. Accounting

271/Accounting 271 (Business Administration). Accounting. Not open to freshmen. May not be included in the minimum 24 credits required for a concentration in economics. (3). (Excl).

This course examines the concepts and procedures of accounting for financial transactions of business enterprises. Attention is given to the central problems of income determination and asset valuation. The final weeks of the course are devoted to financial reports and their interpretation. The format of the course is lecture and discussion. The course includes textbook readings and a series of problems for daily preparation. This course and Economics 272 serves the dual purpose of providing a foundation for students planning to take additional work in accounting and of providing a survey for those who plan no further work in this field.

Section 030: Permission of Comprehensive Studies Program (CSP). This CSP section, which covers the complete course syllabus, is designed for students who want to be certain that they develop a thorough understanding of accounting principles and are willing to devote the effort necessary to do so. Extra class time is provided for in-depth analysis of central concepts. Therefore, enrollment in Comprehensive Studies Program discussion sections will require additional time and effort for problem- solving and review. Check the Time Schedule for meeting times.

272/Accounting 272 (Business Administration). Accounting. Economics 271. Not open to freshmen. May not be included in the minimum 24 credits required for a concentration in economics. (3). (Excl).

A basic course in principles and concepts underlying the development of cost information for financial control and decision-making. Cost accounting and analysis techniques useful in various industries and differing circumstances are considered. Cost budgets and cost standards are emphasized as tools for planning and performance control. Studies of cost behavior and the classification of costs to reflect their behavioral characteristics are covered. This course serves the dual purpose of providing a foundation for students planning to take additional work in accounting and of providing a survey for those who plan no further work in this field.


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