Courses in Economics (Division 358: arranged by groups)

A. Introductory Courses

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

Economics 201 examines theoretically and empirically the microeconomics of the modern capitalist economy: how markets function and what they achieve; how markets may fail and what corrective measures may achieve; the distribution of income; the public sector; and related topics of current interest. The course format consists of one hour of lecture each week (either section 001 or 002) given by the professor and three hours of section meetings each week (sections 003 to 039) given by a teaching assistant. 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 all upper-level courses in economics. Economics 201 is open to first-term frosh in the Honors Program and to non-Honors second-term frosh. Algebra and graphs are utilized throughout. The average grade in the course is C+/B-. (Porter)

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, interest rates, growth and international fluctuations in trade and exchange rates. 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 025) each week by the teaching assistant. The section meetings are limited to 35 students. (Stafford)

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 concentrating in economics. Students who wish to retain the options of further courses in economics or of economics as a possible concentration 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, McKee, Salant, Varian)

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. (Almansi, Laitner, Simon, Webb)

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 descriptive statistics, simple and multiple regression analysis, elementary probability theory, and statistical inference. The description and analysis of data are emphasized. There are two lectures and one problem session per week. Grades are based on problem sets, two midterms and a final exam. The course, which is self-contained, does not normally 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).

See Statistics 405. (Kmenta)

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)

C. 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. (3). (SS).

This course will consist of an intensive examination of several puzzling empirical phenomena involving interest rates, stock yields, commodity prices, and money. Many of the puzzles are classic problems in monetary theory, although a few are of recent vintage. For each of the phenomena we will ask: (a) why is this puzzling from the point of view of standard monetary theory? (b) what theoretical explanations have been advanced? and (c) which implications of each of these theories are or are not borne out by the data? We will begin with the classic Gibson Paradox, made famous by Keynes - the observation that the nominal interest rate and the level (not the rate of change) of prices were correlated over long periods of economic history. The mirror image of the Gibson Paradox is the apparent failure of nominal rates to adjust for inflation during the same periods, and we turn our attention to this puzzle next. From here we move naturally to the coexistence of negative real interest rates on bonds with very low stock prices (and high dividend and earnings yields) in the 1970's. The remainder of the course will concentrate on the central problem in monetary theory why is it that changes in the nominal money stock appear to have potent effects on the real economy. The course prerequisite is Economics 402, although it will be very helpful to have had 401 and at least one other 400 level course. There will probably be one or two examinations, and a term paper which must be brief but which should include a small bit of original research. (Barsky)

D. Labor Economics

422. The Structure of Labor Markets. Econ. 401. No credit granted to those who have completed or are enrolled in 320 or 326. (3). (Excl).

This course is centered around important policy questions. For example, should the power of unions be curtailed? What has been the impact of imports on wage levels and working conditions? How can we understand the employment implications of corporate takeovers? Is the fact that women earn 57 percent of what men earn prima facie evidence of systematic discrimination by employers? What is the meaning of the court cases on job discrimination? Can the government lower unemployment? Lecture format with midterm and final exam. (Stafford)

E. Industrial Organization and Public Control

438/H.A. 661 (Public Health). Economics of Health Services. Econ. 401 or permission of instructor. (3). (SS).

This course provides an analysis of the medical sector in the U.S. It starts with an examination of medical services as one input in a production function for health. The emphasis of the course is then on the efficiency with which medical services are produced, public policies, and the financing of medical services. Specific topics include the demand for medical care, hospitals, physicians, nurses, medical education, regulatory and competitive strategies to improve efficiency, and national health insurance. Lecture format. A midterm and final. (Berki)

F. International Economics

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. Students must attend class lectures plus a one-hour section meeting. Economics 441, the other half of the international sequence, is not a prerequisite. (Stern)

G. 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).

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)

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)

557. Introduction to the Canadian Economy. Econ. 401 and 402 (or equivalent) and permission of instructor. (3). (SS).

The course will follow a seminar format. Topics will include analysis of the salient features of the Canadian economy and its evolving economic structure, and examination of the design and implementation of policies, tracing the influence of federal-provincial relations and external relations with the U.S. and other countries. An effort will be made to draw out lessons for the U.S. that can be derived from Canadian experience. There will be three required papers of 5-10 pages each assigned during the term. The course grade will be based on these papers. (Stern)

H. Economic Development and National Economies

360(460). The Underdeveloped Economies. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 461. (3). (SS).

Why is the Third World considered to be underdeveloped and what are the internal and international problems associated with less developed economies? This course will examine the natures and theories of single country development in a world economy. Both neo-classical and radical theories are used to discuss issues of income distribution, agriculture and rural development, The New International Economic Order, world business cycles, employment, colonialization, and internal and international migration. A country case study follows the discussion of each issue in theoretical terms. Particular attention will be paid to Cuba, Mexico, Kenya, and Taiwan. Readings for each country study will be pulled from a course pack and library materials. Students will be expected to write a term paper on a country of their choice, its internal development problems and policies and how its problems relate to the world economy. A midterm and final exam will be given in addition to the term paper. (Kossoudji)

462. The Economics of Development II. Econ. 401 and Econ. 360 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.

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)

I. Urban and Environmental Economics

472/Nat. Res. 583. Intermediate Natural Resource Economics. Econ. 401 or Nat. Res. 570. (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. (Salant)

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. (Blume)

482. Government Revenues. Econ. 401. No credit granted to those who have completed or are enrolled in 380. (3). (SS).

This course deals with the theory and the institutions of the financing of government expenditures in a mixed economy. Special attention will be devoted to the economic effects of taxation and debt finance. The analysis is rigorous using the tools of geometry, algebra, and elementary calculus. Evaluation is based on midterm test(s) and a final exam. The course is taught as a lecture course. (McKee)

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. But if you do go to law school, the course should be useful in understanding the material encountered in several of your law courses. There will be a choice of a midterm or a paper, plus a final exam. Readings will include Polinsky's Introduction to Law and Economics, articles from law reviews and economic journals, and some legal cases. (White)

K. Economic History

493/Hist. 493. European Economic History. Econ. 201 and 202. (3). (SS).

This course surveys the economic development of Europe from the eve of the industrial revolution through the formation of the Common Market. Topics include models of industrialization, agricultural development, population and labor supply, improvements in industrial technology, imperialism, and economic conflict and cooperation since 1918. Economics 493 is part of the economic history sequence for economics majors. Midterm, final, and several short papers are required. Lecture. (Webb)

L. Honors Program

497. Junior Honors Seminar. Open only to juniors admitted to the Honors concentration in economics. (3). (Excl).

This is the first of a two-term sequence, and together with Economics 498 it satisfies the sequence requirement for the Economics concentration. The main purpose of the course is for each student to select a topic for his or her honor's thesis and to begin research. Students then complete the thesis in the Fall of their senior year, while enrolled in Economics 498. To help them select and refine their topics, students write two shorter papers and a thesis proposal. The class meets once a week to discuss research strategies, to share ideas on thesis topics, and to hear various faculty discuss their research in economics. To enroll, students must apply to the instructor. (Webb)

O. Interdisciplinary Survey Courses

396/Hist. 333/Poli. 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/Asian Studies. 428/Phil. 428/Poli. Sci. 428/Soc. 426. China's Evolution Under Communism. Upperclass standing or permission of instructor. May not be included in the minimum 24 credits required for a concentration in economics. (4). (SS).

See Political Science 428. (Yahuda)

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. (Danos)

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. Check the Time Schedule for meeting times.

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. (Danos)

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