Courses in Economics (Division 358: arranged by groups)

A. Introductory Courses

Students who earned credit for Economics 201 or 400 prior to Fall Term 1982 are permitted to enter all those upper-level courses whose prerequisites are designated Economics 201 and 202. Students who elect Economics 201 in Fall Term 1982 and thereafter will be required to take its sequel, Economics 202, in order to take any advanced course in the Economics Department. Economics 400, taken in Fall, 1982, and thereafter, does not fulfill the prerequisite for advanced courses in Economics.

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

Economics 201 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 an advisor before making the election. 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. In Economics 201, the fundamental theories and concepts of microeconomics are described and are used to analyze problems of current interest. Among the major topics discussed are how consumer and producer preferences interact to determine the price and quantity offered of individual products and resources, the different types of markets within which firms operate, the causes and remedies of such market failures as monopoly and spillover costs, and problems related to the distribution of income. The course format consists of one hour of lecture (either section 001 or 002) each week given by the professor and three hours of section meetings (sections 003 to 023) given by a teaching assistant each week. There are two hour exams scheduled for February 8 and March 15 at 4:00 pm. Students must reserve these times and dates. (Barlow)

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 take Economics 201 in Fall, 1982. 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 021) each week by a teaching assistant. The section meetings are constrained to 35 students. There are two evening hour exams (at 7: 30 pm) on February 9 and March 30 whose dates and times must be reserved by all 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 majoring in economics. Students who view economics as a possible major should take the two-term introductory course, Economics 201 and 202. (Putallaz)

B. Economic Theory and Statistics

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

This course in microeconomics deals with theoretical analysis of consumers, firms, markets and price determination. The analysis is quite rigorous, using the tools of algebra, geometry, and elementary calculus in constructing models. Prerequisites include one term of calculus, though instructors differ considerably in the extent to which they use it. Students should therefore consult the instructors before selecting a section. The course is intended primarily for majors and should be taken early in the concentration program since it is a prerequisite for many other courses in Economics. It is not recommended that 401 and 402 be taken in the same term. A lecture format is the predominant teaching mode, with grading based on midterm and final examinations, though again there is some variation among instructors. (Kleinbaum, Bagnoli, Varian)

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

This course in macroeconomics is concerned with the theory, measurement, and control of broad economic aggregates such as national income, employment, and price level. Economic analysis is used to understand the forces that determine the level of economic activity and its fluctuations, the price level, employment and unemployment, and public policies related to those economic variables. Economics 402 is a prerequisite for many advanced courses offered by the Economics Department. Concentrators are required to elect this course and are encouraged to complete Economics 402 early in the concentration program. It is not recommended that Economics 401 and 402 be elected during the same term. A lecture format is the predominant teaching mode although this varies according to the instructor. The course grade is based on midterm and final examinations and, in some cases, problem sets and papers. (Laitner, Teigen)

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 variance analysis and regression, emphasizing multiple regression and analysis of variance by means of dummy variables. The description and analysis of data take precedence over probability and the theory of inference. There are 2 informal lecture/recitations and one problem session per week. Grades are based on two midterms and a final exam. The course, which is self-contained, does not normally serve as a prerequisite to Econ. 406. (Howrey)

406. Introduction to Econometrics. Econ. 405 or the equivalent. (4). (SS).

Economics 406 is designed to introduce students to the theory and practice of multivariable statistical analysis of economic relationships. Hypotheses testing as well as the construction and use of econometric models are emphasized. Computer exercises are used to provide a stimulating learning environment. Students should be familiar with elementary calculus. (Kmenta)

D. Economic Stability and Growth

412. Stabilization Policy. Econ. 402 and 411, or permission of instructor. No credit granted to those who have completed or are enrolled in 410. (3). (SS).

Stabilization policy refers to the use of monetary, fiscal, and debt management policies that are designed to achieve such macroeconomic goals as full employment, price stability, economic growth, and balance-of-payments equilibrium. Topics covered will include the historical development of stabilization policy and the theory of stabilization policy as well as recent criticisms of the rationale for and effectiveness of such policy. Economics 412 is part of the departmental sequence of courses on money, financial institutions, and macroeconomic policy. (Sellon)

F. Industrial Organization and Public Control

431. Industrial Organization and Performance. Econ. 401. No credit granted to those who have completed or are enrolled in 430. (3). (SS).

An analysis of the behavior and social performance of large business corporations. Emphasis is placed on the sources and significance of the scale of firms, the differentiation of products, the concentration of markets, and the scope of firms in developed market economies. There will be three six-page papers and a final examination. A substantial portion of each class meeting will transpire in discussion format. (Adams)

432. Market Power, Antitrust, Regulation, and Public Enterprise. Econ. 431 or permission of instructor. No credit granted to those who have completed or are enrolled in 430. (3). (SS).

The subject is the main public policies toward market power. Antitrust is the mainstream policy, and it occupies about 1/2 of the course. Actions toward existing market power, toward mergers, and toward collusion and exclusionary actions, are analyzed and criticized. The regulation of utilities is next, with attention to various sectors, including electricity, gas, telephone and transport. Finally public enterprise and some special cases - agriculture, weapons buying and patents are treated. The course follows on Economics 431, which is already overcrowded. Only in highly unusual cases will the 431 prerequisite be waived. Instruction: lecture-discussion. Evaluation: A research paper of 10-15 pages; draft and final versions. A 50-minute midterm, and a two hour final. Texts are W.G. Shepherd and Clair Wilcox, Public Policies Toward Business, 6th ed. (Irwin: 1979); and W.G. Shepherd, Public Policies toward Business: Readings and Cases, rev. ed. (Irwin: 1979). (Shepherd)

G. International Economics

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

A survey of international economics. Topics include exchange-rate determination, balance of payments adjustment, selected international monetary problems, specialization and gains from trade, trade policy and economic welfare, international factor movements, and selected international trade problems. (Saxonhouse)

442. International Finance. Econ. 402 or the equivalent. No credit granted to those who have completed or are enrolled in 440. (3). (SS).

The macroeconomics of economies open to foreign trade. Topics covered are: balance of payments accounts, the foreign exchange market, purchasing power parity, the elasticities approach to devaluation, the Keynesian approach to devaluation, the international version of IS-LM analysis, monetary models of the balance of payments, flexible exchange rates under Keynesian and monetary approaches, direct investment and multinational corporations, dependent economies, policies for internal and external balance, supply shocks, the world monetary system. Recommended background text: Dornbusch and Fischer, Macroeconomics. Grading will be by exam. Economics 441, the other half of the international sequence, is not a prerequisite. (Webb)

H. Comparative Economic Systems

451. Comparative Analysis of Economic Systems. Econ. 401. No credit granted to those who have completed or are enrolled in 450. (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. (Bornstein)

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

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. Can be used with Economics 451, 453, 455, 456, 491, 492 and 493 to meet requirements of Economics concentrators for two course sequence in a field. (Saxonhouse)

I. Economic Development and National Economies

466. Economics of Population. Econ. 201 and 202. (3). (SS).

Economics 466 is an introduction to the economic approach to the study of human population growth. Its primary aim is to acquaint the student with changing trends in fertility, mortality, migration and family composition, and the implications of these trends for the economy. Students are exposed to a modest amount of demographic measurement, but the focus of the course is on the economic determinants of fertility and migration, the economic consequences of population growth in both developing and developed countries and the policy issues related to population growth. Among other things the course deals with zero population growth; the man-food balance in the world; the reversal of earlier rural to urban migration trends in the U.S. and the impact of migration patterns on local economies; the ecological consequences of population growth in the United States; and the elements of population policy both in the United States and the developing countries. There will be a midterm and several short exercises. This course is interdisciplinary in its orientation, and students with little economics in their background are welcome. (Mueller)

J. Urban and Regional Economics

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

Economists studying natural resources and the environment have two main goals. They are concerned that the healthfulness and viability of the environment be preserved. In addition, they would like to see that the measures taken to protect the environment are effective and do not reduce the flow of other goods and services any more than is necessary. Economics 471 will be a systematic investigation and discussion of the economics of environmental issues. After an overview of environmental problems, we will review some of the basic principles of microeconomics, emphasizing concepts that are central to environmental economics such as externalities, Pareto optimality, public goods, and cost-benefit analysis. Most of these concepts are covered rather lightly in Economics 401. We will then apply this analysis to the basic pollution problems, comparing different economic environments (competition, monopoly) and different societal goals (equity, profits, energy, employment). We will discuss the problem of the "commons," focusing on the problems of fishing rights and whale extinction. We will spend quite a bit of time on the economics of automobile usage and safety and on the economics of wilderness use and preservation. There will be a midterm (25% of grade) and a cumulative final exam (40%). Students will write three papers: two shorter ones (10%) analyzing newspaper discussions of current environmental problems and one longer one (25%) examining in detail the economics of some (possibly local) environmental issue. This latter paper must be a sizable effort. Students will have to submit an outline of this paper in early March, a long summary in late March, and a final draft before classes end. Suggestions for topics will be distributed early in January. The prerequisites for this course are Economics 401 and a solid calculus course. Contact Carl Simon (4-9476 or 3-5048) if you have any questions. (Simon)

K. Public Finance

482. Government Revenues. Econ. 401. No credit granted to those who have completed or are enrolled in 480. (3). (SS).

Economic analysis of public sector revenues: Structure and trends of American government revenues; legislative and executive decision-making processes relating to revenues; major taxes and their contribution to equity and economic efficiency (personal income tax, corporation income tax, payroll tax, consumption taxes, property tax), including a discussion of general-equilibrium models of tax incidence; user charges; and debt financing. Lecture method; midterm and final exams; no term paper. Text: R.W. Boadway, Public Sector Economics. (Barlow)

L. 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)

M. Honors Program

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

This is the second term of the Senior Honors Seminar for senior undergraduates writing senior Honors theses. The course is open only to those students who have completed the first term of the sequence, Economics 497. 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. (Weisskopf)

P. Interdisciplinary Survey Courses

396/Hist. 333/Pol. Sci. 396/REES 396/Slavic 396/Soc. 393. Survey of Eastern Europe. May not be included in the minimum 24 credits required for a concentration in economics. (4). (SS).

See REES 396. (Simkus)

428/Asian Studies. 428/Phil. 428/Pol. Sci. 428/Soc. 426. China's Evolution Under Communism. Upperclass or graduate standing. May not be included in the minimum 24 credits required for a concentration in economics. (4). (SS).

See Political Science 428. (Oksenberg)

Q. Accounting

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

These courses examine 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 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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