Courses in Economics (Division 358: arranged by groups)

A. Introductory Courses

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

SECTION 100. Economics 201 examines the microeconomics of capitalism - the behavior of households and businesses and the generation of prices and outputs in markets. Specific topics in Economics 201 include: supply and demand; the differences between competition and monopoly; labor markets and discrimination; international trade; the distribution of incomes; environmental issues; and the public sector. Economics 201 is the first part of the two-term introduction to economics the second part (Economics 202, for which Economics 201 is a prerequisite) examines macroeconomics. Economics 201 and 202 are both required as prerequisites to all further courses in Economics. Prerequisites for 201: high school algebra and a willingness to use it; familiarity with PCs or a willingness to learn (intensive drill and examples from past 201 tests are available there). The course format consists of three large one-hour lectures per week (Section 100) taught by the professor and one small (35 students or less) one-and-a-half-hour section meeting each week (one of Sections 101, 102, ... ) taught by a teaching assistant. The textbook (and study guide) in this Economics 201 is Lipsey, Steiner, Purvis, and Courant, MICROECONOMICS, NINTH Edition, 1990. Final grades will be based on: two hour tests (30%); the best three of the four UNANNOUNCED quizzes given during section meetings (15%); several homework assignments that will be announced, collected, graded, and discussed in the section meetings (15%); and the final exam (40%). NOTE the DATES and TIMES of the two hour tests and the final exam in the TIME SCHEDULE, and BE SURE that you can attend all three makeups will be offered only after proof of DIRE and UNPREDICTABLE circumstances. Cost:2 WL:none (Porter)

Sections 107 and 109 are Comprehensive Studies Program (CSP) sections; these sections meet three hours per week; the grade in these sections is partly based on attendance; see the CSP section in this COURSE GUIDE for further information. Cost:2 WL:none (Porter)

SECTION 200. Economics 201 concentrates on the microeconomics of the modern economy: how markets function under competitive conditions, consumer behavior, and the behavior of firms. The course also discusses the role of government. The course format consists of three one-hour lectures per week (Section 200) taught by the professor and one and a half hours of discussion per week (Sections 201-217) taught by a teaching assistant. Grades are based largely on course-wide hour tests and the final exam, but there will be homework and/or quizzes in the sections. Economics 201 is the first part of the two-term introduction to economics. Both 201 and 202 are required as prerequisites to the concentration and to upper level courses in economics. (Laitner)

202. Principles of Economics II. Econ. 201. No credit granted to those who have completed or are enrolled in 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, international trade, and economic growth. The course format consists of three one-hour lectures per week (either 100 or 200) by the professor and one and a half hours of section meetings (101-115 or 201-215) each week by a teaching assistant. The section meetings are limited to 35 students. [Cost:2] [WL:Contact Lynette McAdoo, Dept. of Economics] (Section 100: Stafford; Section 200: Weisskopf)

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 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. Main lecture will meet twice a week. Sections will meet once a week. (Gerson)

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. [WL:4] (001:Johnson; 006:Howrey)

404. Statistics for Economists. Econ. 201 and 202 and Math. 115. No credit granted to those who have completed or are enrolled in 405. (4). (Excl).

SECTION 001. This course is designed to enable students to read critically empirical literature in economics and other social sciences. Topics covered include descriptive statistics, elementary probability theory, statistical inference, and regression theory. Data analysis and interpretation of quantitative results will be emphasized. 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. [Cost:2-3] [WL:1] (Howrey)

Section 004. This course provides an introduction to the background in descriptive statistics, probability theory, statistical inference and regression theory needed to enable the large body of empirical work that is now undertaken in economics to be understood and appreciated. 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. Cost:1 (Genius)

405/Statistics 405. Introduction to Statistics. Math. 116 or 118, 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 or are enrolled in Econ. 404 or Stat. 311 or 412. (4). (Excl).

This course has originally been designed for economics concentrators but the discussion is sufficiently general to serve noneconomics concentrators 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 to get some experience with computer work. This course is designed for quantitatively oriented students who are comfortable with abstract concepts. Students who prefer a broader, less rigorous approach to statistics should elect Econ. 404. Evaluation of students in the course is based on two midterm tests and one final examination, and on weekly assignments. There are 3 hours of lectures and 1 hour of discussion per week. [Cost:3] [WL:3] (Kmenta)

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

Economics 406 is an introduction to the statistical analysis of economic relationships. Most of the course focuses on the theory and application of regression analysis. Students are expected to be familiar with elementary calculus. The course work includes examinations and assignments including computer exercises involving analysis of economic data. Previous computer experience is NOT a prerequisite. (Bound)

409. Game Theory. Math. 217, or permission of instructor. (3). (Excl).

This course will consist of an introduction to the subject of game theory. Game theory has become an important technique for studying competitive and cooperative phenomena in economics and the social sciences. Traditional economics emphasizes the two extremes of economic decision-making: perfect competition, in which no firm can affect market prices, and pure monopoly, in which one firm has complete price-setting power. Game theory is a technique which allows intermediate situations to be analyzed: for example those that arise during wage negotiations or in price wars between two large firms. The same principles that govern the strategic interaction of players in parlor games like Chess or Poker turn out to be widely applicable to a whole range of such phenomena in economics, biology, and political science. The current course will explore the beginnings of the subject using simple illustrative examples. Some calculus and matrix algebra will be needed, but the mathematical requirement is more for some sophistication in methods of argumentation rather than for specific techniques. (If in doubt about your mathematical background, consult Prof. Binmore.) A final examination will count 50%. The remaining 50% will based on weekly homework assignments. [Cost:1] [WL:4] (Binmore)

501. Microeconomic Theory. Econ. 401 or permission of instructor. (3) (Excl).

This is a course in applied microeconomic theory, and the course content is focused in a series of applied cases. The cases will be supplemented by short weekly student papers which are not graded. Topics studied will include: theory of taxation; risk management; public investment policy; various public policies relating to wages, taxes, and prices. Course grade: 20% for a midterm exam; 35% for the final examination; 45% for a course paper. There will be a course pack and supplementary text. Office hours by appointment. [Cost:3] [WL:3] (Cross)

C. Monetary and Financial Economics

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

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, capital markets, the regulation of financial institutions, the money supply process, money demand, and monetary policy. Evaluation will be based on homework assignments, two midterms, and the final exam. Method of instruction is lecture and discussion. The required prerequisite is Econ 402, Intermediate Macroeconomics. Additional recommended prerequisites are Statistics (Econ 404 or 405) and Econ 401, Intermediate Microeconomics. [WL:1]

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). (Excl).

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. [Cost:2] [WL:1] (Solon)

E. Industrial Organization and Public Control

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

An analysis of the behavior and social performance of firms. Emphasis is placed on understanding how firms compete with one another. Topics include oligopoly theory, differentiated products, entry deterrence, collusion, advertising, research and development, price discrimination and strategic rivalry using game theory. There will be a midterm and a final exam. Cost:3 WL:4 (Shaffer)

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

This course describes and analyzes the efforts of governments to control the market power of business enterprises. Topics include dominant position, oligopolistic cooperation, vertical restraint, and merger. Emphasis is placed in American policies, especially antitrust law and regulation by administrative commission. Econ 431 is not required, but knowledge of certain material it covers will be presumed. Students should be prepared to participate frequently in class discussions. Cost:2 WL:1 (Adams)

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). (Excl).

This course develops the basic concepts and techniques of international trade theory, and applies them to examine some issues of current policy interests in the United States and other countries. (Stern)

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

This course analyzes the macroeconomic and financial interactions between countries. The international component of income and output determination theories of the balance of payments, exchange rate determination, international asset markets and banking, and developing country issues are covered. There are graded homeworks, one midterm and a final exam. (Wells)

G. Comparative Economic Systems and National Economies

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

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 capitalistic market economy, a socialist market economy (with and without workers' management of firms), and a centrally planned economy; (3) Comparative analysis of selected economies' policies and performance; and (4) analysis of current reforms in socialist economies. Reading assignments in various sources; lectures. Two examinations. No papers. [Cost:2] [WL:1] (Dernberger)

453. The European Economy. Econ. 401 and 402; or permission of instructor. (3). (Excl).

The structure and performance of the Western European economies since World War II. Material is organized to illuminate the impact of governmental policies on the manner in which product, capital, and labor markets function. Substantial attention is devoted to Project 1992. Also treated are the Common Agricultural Policy, the competition policy, and the proposed Economic and Monetary Union of the European Communities. Students should be prepared to participate frequently in class discussions. Cost:2 WL:1 (Adams)

454. Economics of Japan. Econ. 201 and 202. (3). (Excl).

Analysis of Japan's economic organization, structure and performance. Special emphasis is placed on the character of Japanese economic planning, the behavior of Japanese enterprises, the Japanese labor force, and the Japanese household. There will also be ample discussion of Japan's international economic relations. Attention will be given to bilateral and multilateral conflicts in overseas product, financial and technology markets. The class has a lecture format, but questions are welcomed. Course grade will be determined by two one hour exams and a final. [Cost:4] (Saxonhouse)

H. Economic Development

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

This course is intended for upper-division undergraduates in economics and for graduate students from outside economics (but note carefully the economic prerequisite). Enrollment is limited to 40. Economics 461 is a basic textbook introduction to the subject, with theoretical, empirical, institutional, and historical perspectives on the twentieth-century growth problems of poor countries. Students who believe the world extends westward to Japan and eastward to Europe are warned that the material of the course is outside their interests. The topics will range across demography, education, agriculture, the role of women, industrialization, multinational corporations, income distribution, foreign trade, foreign aid, international debt, and the sustainability of global development. The format for most classes is lecture-with-interruption, with time planned for questions and discussions. Students must acquire a textbook (by Gillis, Perkins, Roemer, and Snodgrass, ECONOMICS OF DEVELOPMENT, Second Edition), a study guide (by Bolnick, for the above text), the World Bank's WORLD DEVELOPMENT REPORT, 1991, and a small course pack. Homework exercises from the study guide will be regularly assigned, collected and graded. There will be five, twenty-minute, essay or problem quizzes during the term, the best four of which will count toward the grade (i.e., one bad day or absence is costless). Also, during the term, there will be periodic policy debates (about a half hour each, in class) with two students taking one side and two the other; each twosome will share equally the team grade; each student will participate once; the grade will depend half on my evaluation of the zest, scope, toil, and skill of the presentation, half on evaluations by the student audience. There will be one hour test during the final class period of the term. Absence will be excused only with proof of unforeseeable emergency. The overall course grade will be based on homework exercises (15%), quizzes (30%), the debate evaluation (20%), the hour test (30%) and contribution to the classroom (5%). [Cost:3] [WL: 5, NO OVERRIDES WILL BE WRITTEN] (Porter)

J. Public Finance

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

Economics 481 studies the productive and allocative role of government and of other aggregations of individuals, as well as the interactions among politics, economics, and ethics. Topics covered include welfare economics, the theory of public goods, collective choice, problems of group decision making, externalities and common pool problems, cost-benefit analysis, and intergovernmental public finance. Depending upon the time available, we may also consider in detail public policies in the areas of pollution and income redistribution. In considering these topics, emphasis will be placed on theoretical as well as on political issues. The class format will combine lecture and discussion, and there will be several discussion assignments for which advance preparation and participation will be expected. (Katz)

L. Other Topics in Economics

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

This course provides an introduction to Marxian and neo-Marxian political economic analysis of capitalist society in general and of contemporary U.S. capitalism in particular. The first part of the course is devoted to classical Marxian theory, based on readings from the works of Marx and Engels as well as recent sources. The second part of the course focuses on contemporary neo-Marxian political economy, drawing on the writings of economists and other social scientists working within the broad Marxian tradition. (Thompson)

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

A Collegiate Fellows course: see the front section of this Course Guide for a complete list of Collegiate Fellows courses.

This course analyzes legal issues from an economic perspective. It covers 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. There will be midterm and final exams, but no paper. Readings include Cooter and Ullen's LAW AND ECONOMICS and Polinsky's INTRODUCTION TO LAW AND ECONOMICS. (White)

555/IPPS 555. Microeconomics. Permission of instructor. (4). (Excl).

This course deals with the application of basic microeconomic analysis to public policy issues. The principal goal is to teach students the process of economic reasoning and how to apply that reasoning to policy issues in the real world. The course covers the basic topics in microeconomic theory: consumer theory, production theory, market models of perfect competition, monopoly, and oligopoly. Some calculus will be used without apology along with a great deal of algebra and graphical analysis. (Levinsohn)

M. Honors Program, Seminars, and Independent Research

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

ADMISSION INFORMATION FOR THE 495 SEMINAR: Closed at CRISP. To apply for admission into the 495 seminar, students must provide both an unofficial transcript and a completed application no later than Monday, March 25. The transcript should be requested from the General Information Window in the LS&A lobby (open 8-4:15 Mon-Fri) and should be sent to the economics undergraduate office, Room 158 Lorch Hall. The fee is $1.00 and takes several days. An application form is available from Lynette McAdoo (763-9242) in the economics undergraduate office, and should be returned to her. Admission will be the decision of Prof. Stafford and will be posted on April 5. An information meeting will be held March 15.

SECTION 001 INDUSTRIAL GROWTH AND SOCIAL INSTITUTIONS. The course has economics 401 and 402 as prerequisites. The focus of the course is on the factors influencing industrial growth in the United States in comparison with industrial growth in other industrialized countries in Europe and with Japan. There is also analysis of the patterns of change in the newly industrialized countries. The framework of the course includes interpretations offered from open economy macroeconomics as well as applied price theory. The course examines the influence of factors outside the immediate sphere of economics on industrial growth. The role of these social institutions as they shape labor markets, technology and the management style of the economy is assessed. (Stafford)

O. Accounting

Effective Fall Term, 1991, Economics/Accounting 271 and Economics/Accounting 272 will no longer be crosslisted by the Department of Economics. They will be BUSINESS SCHOOL courses only and, as such, will no longer generate LS&A credit. Students wishing to elect these courses for LS&A credit should note that Economics 271 will be offered for the last time in the Spring Half-Term, 1991. Economics 272 will be offered in the Spring Half-Term and will be offered for the last time during the Summer Half-Term, 1991. Candidates for an A.B. or B.S. degree may count 12 credits of non-LS&A course work in the minimum 120 credits required for a degree. See page 15 of the 1990-91 LS&A Bulletin for further information on non-LS&A course work.


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