Courses in Economics (Division 358: arranged by groups)

A. Introductory Courses

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 advisor before making the election. (Fusfeld)

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, 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 026) each week by a teaching assistant. The section meetings are limited to 35 students. (Courant)

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 concentrating in economics. Students who wish to retain the options of further courses in economics or of economics as a possible concentration should take the two-term introductory course, Economics 201 and 202. (Shulman)

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. (Bagnoli, Blume, Borenstein, Feldstein, Swierzbinski, Thursby)

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. (Anderson, Johnson, Miron, Webb, Weisskopf)

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 descriptive statistics, simple and multiple regression analysis, elementary probability theory, and statistical inference. The description and analysis of data are emphasized. There are two lectures and one problem session per week. Grades are based on problem sets, two midterms, a short paper, and a final exam. The course, which is self-contained, does not serve as a prerequisite to Economics 406. (Brown)

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)

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

This course provides an introduction to Marxian and neo-Marxian analysis of capitalist society in general and contemporary U.S. capitalism in particular. The first part of the course will be devoted to classical Marxian economics, drawing on readings from the works of Marx and Engels as well as modern sources. The second and major part of the course will focus on contemporary neo-Marxian political economy, drawing from the writings of modern radical economists and other social scientists working within the Marxian tradition. Grades will be based on one midterm and one final examination. The course does not fulfill the departmental sequence requirement. (Weisskopf)

C. Economic Stability and Growth

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).

Economics 411 is designed to introduce students to monetary theory and policy at a formal level. General topics which are covered include: money demand; money supply; interest rate determination; monetary policy and economic activity. Course evaluation will be based on two midterm and final examination grades. There will be optional homework assignments. Method of instruction is lecture and discussion. Economics 411 has as a prerequisite, Economics 402, and is the first course in a departmental sequence, the other course being Economics 412 (Stabilization Policy). (Aschauer)

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

This course will consist of an intensive examination of several puzzling empirical phenomena involving interest rates, stock yields, commodity prices, and money. Many of the puzzles are classic problems in monetary theory, although a few are of recent vintage. For each of the phenomena we will ask: (a) why is this puzzling from the point of view of standard monetary theory? (b) what theoretical explanations have been advanced? and (c) which implications of each of these theories are or are not borne out by the data? We will begin with the classic Gibson Paradox, made famous by Keynes the observation that the nominal interest rate and the level (not the rate of change) of prices were correlated over long periods of economic history. The mirror image of the Gibson Paradox is the apparent failure of nominal rates to adjust for inflation during the same periods, and we turn our attention to this puzzle next. From here we move naturally to the coexistence of negative real interest rates on bonds with very low stock prices (and high dividend and earnings yields) in the 1970's. The remainder of the course will concentrate on the central problem in monetary theory why is it that changes in the nominal money stock appear to have potent effects on the real economy. The course prerequisite is Economics 402, although it will be very helpful to have had 401 and at least one other 400 level course. There will probably be one or two examinations, and a term paper which must be brief but which should include a small bit of original research. (Barsky)

D. Labor Economics

326(426)/Amer. Inst. 426. The Development of the American Labor Market Institutions. Econ. 201 or the equivalent. Not open to students who have taken or are taking Econ. 421 or 422. (3). (SS).

See American Institutions 426. (Johnson)

333/Amer. Inst. 433. Economic Analysis of Industrial Policy. Econ. 201 and 202. (3). (SS).

See American Institutions 433. (Stafford)

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)

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 examines large industrial corporations their behavior, their social performance, and their regulation by government. Classes are conducted in the Socratic manner. (Adams)

431. Industrial Organization and Performance. Econ. 401. No credit granted to those who have completed or are enrolled in 330. (3). (SS).
Section 001.
The behavior and social performance of large industrial corporations. Classes will be conducted in the Socratic style. (Adams)

Section 002. Analysis of noncompetitive behavior: monopolistic manipulation of buyers, strategic interaction among oligopolists, entry deterrence, predatory pricing, cartel behavior, and collusion. A portion of the course will be devoted to the exposition at an elementary level of those ideas in noncooperative game theory which have recently transformed the field of industrial organization: the use of bluffs based on information known to be private and the use of credible threats when dealing with rivals as well as the possibility of enlisting their cooperation when interactions may continue indefinitely. When available, evidence from controlled laboratory experiments (and from industry studies) will be reviewed to assess the predictive power of the theories. An elementary understanding of discrete probability is recommended. Instruction: lecture/discussion. Evaluation: a midterm, final and problem sets. (Salant)

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. (Shepherd)

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

This course provides an analysis of the medical sector in the U.S. It starts with an examination of medical services as one input in a production function for health. The emphasis of the course is then on the efficiency with which medical services are produced, public policies, and the financing of medical services. Specific topics include the demand for medical care, hospitals, physicians, nurses, medical education, regulatory and competitive strategies to improve efficiency, and national health insurance. Lecture format. A midterm and final. (Feldstein)

F. International Economics

442. International Finance. Econ. 402 or the equivalent. No credit granted to those who have completed or are enrolled in 340. (3). (SS).

The course deals with macroeconomic analysis and issues for an open economy. Topics include: the foreign exchange market and the balance of payments; the income-absorption and monetary-asset market approaches to national income determination and the balance of payments; macro-stabilization policies and central bank intervention under fixed and floating exchange rates; Eurocurrency markets; monetary integration; and reform of the international monetary system. Grading will be based on two midterms and a final exam. There will be optional homework assignments. Students must attend class lectures plus a one-hour section meeting. Economics 441, the other half of the international sequence, is not a prerequisite. (Almansi)

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. 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)

455. The Economy of the People's Republic of China. Econ. 201 and 202. (3). (SS).

Analysis of economic organizations, structure, system of planning, economic performance, and problems in China. Approximately first third of term, however, spent in review of developments before 1949. Basically lecture format due to class size, but questions allowed and discussed. Midterm and final exam used to determine course grade. Paper required for graduate credit. Can be used with Economics 451 to meet requirement of Economics concentrators for two-course sequence in a field. (Dernberger)

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. May be used (along with Econ. 451) for departmental concentration sequence in Comparative Economic Systems. (Bornstein)

H. Economic Development and National Economies

360(460). The Underdeveloped Economies. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 461. (3). (SS).

Examination of the structure and problems of the low-income nations; and analysis of the economic issues of development policy; and discussion of the economic relationships between the poor and rich nations of the world. Designed for students who wish a relatively nontechnical introduction to the problems of economic development. (Lam)

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)

467. Economic Development in the Middle East. Econ. 201 and 202. (3). (SS).

This course combines an analysis of the structure and performance of contemporary Middle Eastern economies with discussions of development issues of general interest. Issues considered in recent versions of the course include population problems, the oil industry, economic aspects of Islam, agricultural development, and international migration. Each issue is discussed both in general terms and in the institutional context of a specific Middle Eastern economy. May not be elected for credit more than once. (Barlow)

I. Urban and Environmental Economics

472/Nat. Res. 583. Intermediate Natural Resource Economics. Econ. 401 or Nat. Res. 570. (3). (Excl).

This course is an introduction to the economics of natural resources. Both replenishable resources (such as water, trees, fish, whales, wildlife, and agricultural products) and nonreplenishable resources (such as oil and minerals) will be considered. The defining characteristic of such resources is that increased consumption today has future consequences. The course therefore emphasizes intertemporal choice. Comparisons will be made between the market outcome when self-interested agents interact over time and efficient intertemporal exploitation of the resource. Such comparisons will be made under certainty and uncertainty and when the resource is privately owned or "common property." For balance, models of animal behavior will also be considered including optimal foraging behavior and evolutionarily stable equilibria. The course presumes familiarity with elementary probability, calculus, and static microtheory at the level of Economics 401 or equivalent. Grades will be based on hour test(s), problem sets, and a final exam. (Swierzbinski)

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 public goods, externalities and legal liability, formal models of voting systems, benefit-cost analysis, preference revelation, measurement of demand for public goods, and applications of game theory to public choice. Emphasis will be theoretical rather than institutional. (Blume)

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)

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

This course analyzes legal issues from an economic perspective. It will cover topics in a variety of legal areas, including torts, contracts, property law and environmental law. For example, the course will ask the question of who should be liable for damage in automobile accident cases in order to give drivers incentives to take an economically efficient level of precaution against accidents. It will ask under what circumstances buyers or sellers should be encouraged to breach contracts and what penalties for breach will encourage them to breach only when such behavior is economically efficient. It will ask how the availability of insurance changes behavior in uncertain situations such as these. A "truth in advertising" proviso: students intending to go to law school should be cautioned that this course will not help in getting admitted there any more than any other economics course will. There will be a midterm and a final exam. Readings will include Polinsky's Introduction to Law and Economics, articles from law reviews and economic journals, and some legal cases. (White)

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 concentrators. 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). (INDEPENDENT).

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.

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.

Lecture sections 001, 002, or 003, and recitation Section 025: 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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