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 1983 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 normally 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 concentrates on the microeconomics of the modern economy: how competitive markets function; the effect of monopoly and 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 (either section 001 or 002) each week given by the professor and three hours of section meetings (sections 003 to 037) given by a teaching assistant each week. 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 an advisor before making the election. (Fusfeld)

Section 018: Permission of Comprehensive Studies Program (CSP) . This section, which covers the complete course syllabus, is designed for students who want to be certain that they develop a thorough understanding of economic principles, are highly prepared for Economics 202, 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 this CSP section will require additional time and effort for problem-solving and review.

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

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, Cross, Simon, McKee, Blomquist) Bagnoli (001) emphasizes analysis and the use of calculus and will assign problem sets; Cross (002) uses some calculus; Simon (003) emphasizes analysis, uses some calculus, and assigns weekly problem sets; Blomquist (005) emphasizes analysis and uses some calculus.

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. (Sen, Lown, Miron, Gerson) Sen (001) uses calculus; Lown (002 and 003) stresses the graphical and algebraic; Miron (004 and 006) uses some algebra but no calculus; Gerson (005) stresses the graphical and algebraic.

403. Advanced Economic Theory. Econ. 401 and 402. (3). (SS).

The microeconomic theory taught in Econ 201 and Econ 401 is concerned primarily with perfectly competitive behavior many people, all roughly alike. This condition does not describe many of the social interactions that economists seek to model. In this course we will study economic models of small group interaction and their applications. Topics to be discussed include externalities and the allocation of property rights, oligopoly models, bargaining, and the arms race. Game theory is the analytical tool economists apply to these problems, and so much of the course will be spent in studying game theory techniques. Readings include Schelling's The Strategy of Conflict, Axelrod's The Evolution of Cooperation, and some textbook exposition of elementary game theory. Econ 401 is a prerequisite for this course. (Blume)

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).

See Statistics 405.

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

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

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 310 (410). (3). (SS).

The traditional approach to the study of macroeconomic theory and policy is to assume that some combination of labor, goods, and capital markets fail to allocate resources in an efficient manner. In this approach, there is a mandate for stabilization policy to correct and prevent private market failure. In this course we take an alternative approach to macroeconomics. We assume that typically private markets are in equilibrium and that they are successful in allocating resources properly in the face of competing needs. Within this general framework we then analyze the positive and normative effects of fiscal and monetary policy actions. Readings: the basic text for the course is Robert Barro, Macroeconomics (1983). In addition, various professional articles will be assigned when appropriate. Students will be evaluated on the basis of a midterm and final examination as well as on various writing requirements. (Aschauer)

E. Labor Economics

320(420). Survey of Labor Economics. Econ. 201 and 202. Not open to those who have taken Econ. 421 and/or 422. (3). (SS).

This course surveys the demand and supply of labor, investment in human capital, market structure and the efficiency of labor markets, discrimination, collective bargaining, the distribution of income, and unemployment. A midterm and a final exam are required. (Blomquist)

422. Labor Economics II. Econ. 421. Not open to students who have taken 320 (420). (3). (SS).

This course is centered around important policy questions. For example, should the power of unions be curtailed? Is the fact that women earn 57 percent of what men earn prima facie evidence of systematic discrimination by employers? Can the government do anything to lower unemployment? Lecture format with midterm and final exam. (Stafford)

F. 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 offers a general introductory survey of the field of industrial organization and public policies. The topics covered include: (1) how markets are organized and how the organization affects the market's performance, and, (2) how government policy, antitrust law and regulation affects both the organization of the market and its performance. In other words, it examines the inefficiencies of private markets and how governmental policy can encourage industries to produce more efficiently. This course cannot be used as part of the two-course industrial organization sequence. A lecture/discussion format is used. (York)

431. Industrial Organization and Performance. Econ. 401. No credit granted to those who have completed or are enrolled in 330 (430). (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 trademarks, mergers and expenditures on research and development. There will be a midterm and a cumulative final exam. (Bagnoli)

432. Government Regulation of Industry. Econ. 401. No credit granted to those who have completed or are enrolled in 330 (430). (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, financial services, airline, 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. This course is the second part of the 431-432 sequence, but can be taken first with a moderate amount of extra work. Instruction: lecture/discussion. Evaluation: two 50-minute midterms and a two-hour final. (Hartzmark)

439/Business Administration 335. Futures Markets: Analysis and Application. Econ. 401 and 404 or 405 or equivalent. (3). (Excl).

This course examines the economic and public policy issues surrounding futures markets. It analyzes the cash and futures pricing of contracts traded on the major futures exchanges, such as stock indices, financial instruments, energy sources, foreign currencies, and agricultural commodities. Topics treated include: intertemporal pricing of goods under uncertainty and imperfect information; role these markets play in the management of risk for processors, distributors, producers, inventory holders, exporters, brokers, and bankers; the speculator's role in determining market liquidity and price stability; organization and evolution of the exchanges; innovations in contract design and the development of options trading; possibility of price manipulation and other market failures; need for and the performance of government regulation and exchange self-regulation; and empirical evaluation of market performance. Instruction: lecture/discussion with outside speakers involved in the market. Evaluation: midterm and final. This course is NOT part of the 431-432 sequence and cannot substitute for either of these courses. Prerequisites: Econ 401 and 404 or 405 (or their equivalent). (Hartzmark)

G. International Economics

442. International Finance. Econ. 402 or the equivalent. No credit granted to those who have completed or are enrolled in 340 (440). (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 homework assignments, two midterms and a final exam. Students must attend class lectures plus a one-hour section meeting. Economics 441, the other half of the international sequence, is not a prerequisite. (Webb)

H. 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).

Covers theoretical models and case studies of capitalist and socialist economies and of market-guided and centrally-planned economies. Assigned readings and lectures. Not in Departmental concentration sequence in Comparative Economic Systems. (Bernasek)

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

453. The European Economy. Econ. 201 and 202. (3). (SS).

The structure and performance of the Western European economies since World War II. Emphasis is placed on using international comparisons to evaluate the effects of governmental policies and national cultures on the behavior of firms and households. Classes will be conducted in the Socratic style. Grading will be based on two hour-exams, a final examination, and class participation. Prerequisites: Econ 401 and 402. Reading knowledge of a European language is recommended but not required. (Adams)

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 majors for two-course sequence in a field. (Dernberger)

I. Economic Development and National Economies

462. The Economics of Development II. Econ. 401 and Econ. 360 (460) or 461. (3). (SS).

This course follows Economics 461 in a two-term sequence. It will deal with selected topics in economic development, including agriculture, technology, income distribution, foreign aid and project evaluation. Examples will be drawn from contemporary less-developed countries. Most of the analysis will use microeconomic tools at the level of Economics 401, and some calculus will also be used. Grades will be based on an in-class midterm exam, a final exam, and an optional paper. (Brux)

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 immigration on the U.S. labor force; the ecological consequences of population growth in the United States and the developing countries. There will be a midterm and an optional term paper. This course is interdisciplinary in its orientation, and students with little economics in their background are welcome. (Mueller)

J. Urban and Environmental Economics

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

Environmental economics is the study of how to manage the environment in the best interests of society. We will discuss the structure of market failures and of policies to correct those failures in the environmental arena. Both efficiency and equity concerns will be addressed. The tradeoffs of various uses are analyzed throughout the course and when possible the optimal balance is discussed. There will be a midterm (15%), a cumulative final (35%), and a term paper (50%). The term paper will be based on an extended computer simulation exercise of a river pollution case that the class will carry out in teams. (Jones)

K. Public Finance

481. Government Expenditures. Econ. 401. No credit granted to those who have completed or are enrolled in 380 (480). (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, the theory of marriage, the theory of clubs, 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 (480). (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)

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. (Stafford)

O. Institute of Public Policy Studies Courses

573/IPPS 573. Benefit-Cost Analysis. Econ. 555 or the equivalent; or permission of instructor. (4). (SS).

A course in the economics of program evaluation. Part of the core sequences for IPPS only selected undergraduates admitted. Reviews of standard benefit- cost methodology such problems as computing consumer surplus, valuing time and safety, discounting. Then shows how the same logic can be applied to programs for income redistribution, human capital, grants, and regulation. One final exam and a term paper in which students actually evaluate some program. (Gramlich)

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. (Meyer)

428/Pol. Sci. 428/Philosophy 428/Asian Studies 428/Soc. 426. China's Evolution Under Communism. Upperclass or graduate standing. (4). (SS).

See Political Science 428. (Oksenberg)

Q. 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.

Section 019: 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. The meeting time is scheduled for Tuesday and Thursday, 1:00 2: 30 p.m.

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.


lsa logo

University of Michigan | College of LS&A | Student Academic Affairs | LS&A Bulletin Index

This page maintained by LS&A Academic Information and Publications, 1228 Angell Hall

The Regents of the University of Michigan,
Ann Arbor, MI 48109 USA +1 734 764-1817

Trademarks of the University of Michigan may not be electronically or otherwise altered or separated from this document or used for any non-University purpose.