Courses in ECONOMICS (DIVISION 358)

A. Introductory Courses

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

Economics 201 concentrates on the microeconomics of the modern economy: how prices and quantities of goods and services are determined under competitive conditions as well as in other types of markets; the distribution of income and wealth; the public sector; and related topics of current interest. The course format consists of three one-hour lectures per week (either Section 100, 200, 300) taught by the professor and one and a half hours of discussion per week (Section 101-113, 201-212, 301-312) 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. Cost:2 WL:None. For information about overrides, call Lynette McAdoo at 763-9242. (Section 100: Laitner; Section 200: 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 GDP, unemployment, inflation, international trade, and economic growth. The course format consists of three hours of lecture per week (either 100 or 200) by the professor and one and a half hours of section meetings (101-109 or 201-212) 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: Hymans)

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 Math 115 or equivalent, and Economics 201 (or permission of the instructor). 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. (Varian)

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:Clark; 006:Johnson)

404. Statistics for Economists. Econ. 201 and 202 and Math. 115. No credit granted to those who have completed or are enrolled in 405 or Stat. 311, 402, or 412. (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 Stat. 311 or 412. Students with credit for Econ. 404 can only elect Econ. 405 for 2 credits and must have permission of instructor. (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] (Lee)

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)

C. Monetary and Financial Economics

411. Monetary and Financial Theory. Econ. 402, and 404 or 405. 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 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, forms of compensation, and unemployment. The course develops microeconomic models of the labor market, presents relevant empirical evidence, and discusses applications to policy issues. Grades are based on midterm and final examinations. [Cost:2] [WL:1] (McLaughlin)

E. Industrial Organization and Public Control

333. Economic Analysis of Industrial Policy. Econ. 201 and 202. (3). (Excl).

The goal of the course is a broad analysis of the questions of what has come to be called "industrial policy" and other structural policies aimed at reversing the weak performance of the U.S. economy. We will attempt to examine the subject from several perspectives. The course topics include the definition of an industrial policy, whether American industry is in a condition that merits serious concern, the use of traditional macroeconomic and trade policies, labor's stake in industrial transition, new theories of the nature of the firm, the controversial role of corporate raiding and reorganization, examination of the experience in the specific industries (autos, computers, aircraft) and the role of technology and R and D activity. A final section of the course will evaluate some specific policies and proposed remedies. Many of the topics compare U.S. institutions with those in other countries. (Stafford)

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

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

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 deals with the theory of international trade. It explores the important theories that explain what countries trade and why they gain from trade. These theories include the theory of comparative advantage and the factor-proportions theory of trade, as well as more recent theoretical developments. The course also deals with several other related topics, such as empirical tests and applications of trade theory, the theory of trade policy, preferential trading arrangements, international factor movements, and trade and economic development. (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] [WL:NA] (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 is the first of a two-course sequence (461-462) on the economic development of Third World countries. It is intended primarily for upper-division undergraduates in economics and for graduate students from outside economics (but note carefully the prerequisite Economics 401 and 202 are essential, and Economics 402 will be helpful). Economics 461 is essentially a 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, gender, industrialization, multinational aid, international debt, and the sustainability of global development. The format for most classes is lecture-with-interruption, with time allocated for questions and discussions, Students must acquire a textbook, the World Bank's World Development report 1992, and a modest course pack. Homework exercises 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 course grade (i.e. one bad day or absence is costless). Also, during the term, there will be periodic presentations by teams of two to four students; each member of the team 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 presentations and half on evaluations by the other students. The exact structure and content of the presentations will be determined by the class early in the term. There will be one cumulative hour test, during the final class of the term absence from that will be excused only with proof of unforeseeable emergency. There will be no final exam. The overall course grade will be based on homework exercises (15%), quizzes (30%), the presentation (20%), the hour test (30%), and contribution to the classroom (5%). Cost:3 WL:1 (Porter)

I. Environmental Economics

471/Nat. Res. 571. Environmental Economics. Econ. 401. or Nat. Res. 570 or equivalent. No credit granted to those who have completed or are enrolled in Econ. 370. (3). (Excl).

This course is intended primarily for upper-division undergraduates in the economics concentration and for graduate students from outside economics (but note carefully the prerequisite a solid intermediate microeconomic theory is essential). Economics 471 is a broad introduction to market failure, with theoretical, empirical, institutional, and historical perspectives on twentieth-century environmental problems. The course will consist of three segments: 1) the theory relevant to environmental market failure (externalities and public "bads") and policy responses (taxes, subsides, and regulation); 2) the policies adopted in the United States over the past quarter-century towards various environmental problems (particularly towards solid waste disposal and recycling); and 3) a quick overview of natural resource theory and policy (included here because Economics 472, on this topic, will not be taught in this academic year). The format for most classes is lecture-with-interruption, with time allocated for questions and discussions. Students must acquire a small textbook and a large course pack. There will be five, twenty-minute, essay or problem quizzes during the term, the best four of which will count toward the course grade (i.e. one bad day or absence is costless). Students electing this course for ECB credit will write a twenty-page-plus paper on some local environmental problem, with theoretical, historical, interview, and empirical material; the outline will be discussed with both the Teaching Assistant and me; the first draft of the paper will be read and evaluated by the TA; the final paper will be read and evaluated by me. Students who do not want ECB credit will be grouped into small teams, also studying a local environmental problem, and reporting their research in one of the final classes; each member of such a group will share the team's grade equally; the grade will depend half on my and the TA's evaluations of the test, scope, toil, and skill of the presentation and half on evaluations by the other students. There will be one cumulative hour test, during the final class of the term absence from that will be excused only with proof of unforeseeable emergency. There will be no final exam. The overall course grade will be based on quizzes (30%), the paper or presentation (30%), the hour test (35%), and contribution to the classroom (5%). Cost:3 WL:1 (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)


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