Courses in Economics (Division 358: arranged by groups)

A. Introductory Courses

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

Economics 201 concentrates on the microeconomics of the modern capitalist economy: how markets function under competitive conditions, and with other kinds of market organization; the distribution of income and wealth; and arguments for and means of government intervention in markets. The course format consists of a lecture once per week taught by the professor and discussion sections meeting three hours per week taught by the teaching assistant. Grades are based largely on two course-wide hour tests during the term and a course-wide final exam, but there will also be quizzes in the sections. Economics 201 is the first of the two-term introduction to economics, and 201 must be taken before 202. Both 201 and 202 are required for the concentration and are prerequisites to ALL later (300 and 400 level) courses in economics. Economics 201 is now open to all frosh, space permitting. Note in the Time Schedule that 201 is given as TWO SEPARATE courses this term. Be careful not to elect lectures from one of these courses and sections from the other (or go to the wrong hour tests or to the wrong exam); the costs of such error will fall largely on the careless student. If you elect the lecture numbered 100 (Barlow), you must elect one of the discussion sections numbered 101-117, with hour tests on 11 Oct. and 8 Nov. (at 5 p.m.); if you elect EITHER of the lectures numbered 210 or 220 (Porter), you must elect one of the discussion sections numbered 221-253, with hour test on 13 Oct. and 10 Nov. (at 5 p.m.). Remember that the discussion sections begin on 8 Sep.; any student absent from the first two discussion section meetings will be summarily dropped from the course. Examine closely the special exam schedules in this course, and reserve the appropriate time. (Barlow, Porter)

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

Economics 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 international trade and finance 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 031) each week by a teaching assistant. The section meetings are limited to 35 students. (Stafford)

B. Economic Theory and Statistics

401. Intermediate Microeconomic Theory. Econ. 201 and 202, and Math. 115. (4). (SS).

This course 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 construction 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. Main lecture will meet twice a week. Sections will meet once a week. (Bergstrom)

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

This course in macroeconomics deals with the theory of broad economic aggregates such as national income, employment, the price level, and the balance of payments. Rigorous analysis is used to understand the forces that determine these economic variables, and how they are affected by public policies. It is predominantly a lecture course, with grades based on hour test(s) and final exam. 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 strongly recommended that students take Economics 401 before 402. (Almansi, Weisskopf, Staff)

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 enable students to read critically empirical literature in economics and other social sciences. Topics covered include descriptive statistics, regression theory, elementary probability theory, and statistical inference. This course will emphasize data analysis and interpretation of quantitative results. There are two lectures and one problem session per week. Grades are based on problem sets and exams. The course, which is self-contained, does not serve as a prerequisite to Economics 406. (Gerson)

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

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

SECTION 001 AND 002 Economics 411 focuses on modern financial markets and the role of monetary policy in influencing asset prices and the economy. Monetary and financial economics are developed at a formal level. Topics covered include financial institutions and markets, interest rate determination, portfolio theory, efficient capital markets, the money supply process, money demand, monetary policy, imperfect competition macroeconomics and macroeconomics from a systems-theory perspective. Evaluation will be based on homework assignments, two midterms and the final exam. Method of instruction is lecture and discussion. Economics 411 is the first course in a departmental sequence; the other course in the sequence is Economics 412. The prerequisite is 403, Intermediate Macroeconomics, and some course in statistics. (Kimball)

D. Labor Economics

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. (Johnson)

E. Industrial Organization and Public Control

330. 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).

An analysis of the behavior and social performance of firms. Emphasis is placed on understanding how firms compete with one another. Topics include why firms exist, oligopoly theory, differentiated products, entry deterrence, collusion, advertising and research and development. There will be a midterm and cumulative final exam. (Bagnoli)

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

SECTION 001 This course describes and analyzes attempts by governments to curb the exercise of monopoly power. While emphasis is placed on American policies, especially antitrust law and regulatory commissions, some attention is devoted to public policy in Western Europe. Knowledge of material covered In Economics 431 will be presumed. Classes will be conducted in the Socratic manner. (Adams)

Section 002 This course studies the causes and effects of public economic regulation, focusing both on the substance of regulatory programs and on the particular procedures and institutions used to implement them. There are three main parts to the course. First, we consider normative and positive explanations of economic regulation, examining both market-failure and interest-group theories of the phenomenon. Second, we take up the federal antitrust laws, focusing on their substance, the incentives they create, and their effects on market structure and conduct. Topics to be covered include monopolization, collusion, mergers and other potentially restrictive practices. Third, we examine direct public regulation, first studying the effects of traditional price, output, and entry regulation of fraud, product quality, and health and safety. In this third section, somewhat more emphasis will be placed on the common features and problems of regulation in general than on the specific details of particular industries. (Katz)

F. International Economics

340. International Economics. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 441 or 442. (3). (SS).

Survey of the major aspects of international trade and finance, with emphasis on current policy issues. Three lectures weekly. (Deardorff)

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. (Levinsohn)

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. Economics 441, the other half of the international sequence, is not a prerequisite. (Almansi)

G. Comparative Economic Systems

350. 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)

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

A comprehensive and intensive analysis of the Soviet economy, including (1) economic history; (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

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 foreign trade, income distribution, the debt crisis, as well as development planning and other policy issues. The requirements of the course will include a midterm and final examination. Each student is expected to select a country for special study and write two short reports on that country. (Mueller)

I. Urban and Environmental Economics

472/Nat. Res. 583. Intermediate Natural Resource Economics. Econ. 401 or Nat. Res. 570. No credit granted to those who have completed or are enrolled in Econ. 370. (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. (Graham-Tomasi)

J. Public Finance

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. (Katz)

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: Stiglitz, ECONOMICS OF THE PUBLIC SECTOR. (White) (Mackie-Mason)

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 midterm and final exams, but no paper. Readings will include Cooter and Ullen's LAW AND ECONOMICS, articles from law reviews and economic journals, and some legal cases. (White)

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.

CSP Section available. See Comprehensive Studies Program (CSP) section in this Guide.

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 merchandising and manufacturing firms, the accounting for long-term liabilities and investments and an introduction to cost budgets and cost standards. Tools for planning and performance control are emphasized. 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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