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 concentrates on the microeconomics of the modern economy: how markets function under competitive conditions as well as with various other types of market organization; 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 each week (either Section 001 or 002) taught by the professor and three hours of section meetings each week (Sections 003 to 046) taught by a teaching assistant. Grades are based largely on course-wide hour tests and the final exam, but there will also be 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. Economics 201 is open to first-term freshmen in the Honors Program and to non-Honors second-term freshmen. Please note the special hour test and final exam times shown in the Time Schedule (the FIRST exam code letter is the PRINCIPAL exam time). (Juster)

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 international trade and finance 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 027) each week by a teaching assistant. The section meetings are limited to 35 students. (Stafford)

B. Economic Theory and Statistics

401. Intermediate Microeconomic Theory. Econ. 201 and 202, and Math. 115. (4). (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. Main lecture will meet twice a week. Sections will meet once a week. (Bergstrom)

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. (Barsky, Deardoff, Johnson, Khadr, Simon)

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

The focus of this course will be on the negotiation and bargaining aspects of trade that are frequently ignored in standard microeconomic theory. So, instead of assuming that trade takes place anonymously, we will study the interactions between buyer and seller as they attempt to trade. These ideas will be applied to bilateral monopoly problems such as contract negotiations between a union and a firm's management, to settlements of disputes such as out-of-court settlements, other types of contracting such as the signing of entertainers or sports stars, and to more everyday negotiations such as car buying or major appliance purchases. For the most part, we will address these issues in an analytically rigorous manner. Readings will predominantly be drawn from H. Raiffa's THE ART AND SCIENCE OF NEGOTIATION and selected articles. Economics 401 and 402 are prerequisites for this course. (Bagnoli)

404. Statistics for Economists. Econ. 201 and 202; or permission of instructor. No credit granted to those who have completed 405. (4). (SS).

Section 001 This course is designed to enable students to read critically empirical literature in economics and other social sciences. Topics covered include descriptive elementary probability theory, and statistical inference. This course will emphasize data analysis and interpretation of quantitative results. 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. (Gerson)

Section 002 This course is designed to enable students to read critically empirical literature in economics and other social sciences. Topics covered include descriptive elementary probability theory, and statistical inference. This course will emphasize data analysis and interpretation of quantitative results. There are three lectures and one problem session per week. Grades are based on problem sets, exams, and a short paper. The course, which is self-contained, does not serve as a prerequisite to Economics 406. (Bound)

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).

This course has originally been designed for economics concentrators but the discussion is sufficiently general to serve noneconomics concentrators just 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 get some experience with computer work. While Economics 405 is not required for an economics concentration, it is difficult to see how anyone today can be regarded as an economist without some knowledge of statistics. Employers typically ask for some training in statistics, and letters from graduates often express regret for not having had more statistics. (Thursby)

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)

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

This course presents and develops the Marxian critique of capitalism. In particular, it analyzes the work process under capitalist relations of production and the lives of the working class. In addition to various readings from Robert Tucker's THE MARX-ENGELS READER, it draws on the accounts of work experience found in Studs Terkel's WORKING and Lillian Rubin's WORLDS OF PAIN. These books are all available in paperback for about $30 total. Students are expected to keep a journal of their critical reactions to the readings and class discussions as well as their own experiences. Course grades are based on these journals. (L. Anderson)

C. Economic Stability and Growth

310(410). Money and the Economy. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 411 or 412. (3). (SS).

The first half of the course is devoted to the study of financial intermediation, interest rates, money market instruments and banking. Recent innovations in financial markets are integrated with the study of bank holding companies, savings and loan holding companies, and nonbank financial intermediation by industrial concerns such as Ford Motor Company and Sears. The second half is devoted to the theory of monetary control, monetary policy, and Federal Reserve policymaking. Students must have completed Econ 201 and 202. Students may not receive credit for Econ 411 or 412 if they have received credit for Econ 310. Course is lecture and discussion, based on a text and supplementary course pack of readings. Quizzes are given each week plus two midterm exams and a final exam. Most exam questions are objective (true-false, multiple choice, etc.). (R.Anderson)

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

Section 001 Economics 411 is designed to introduce students to monetary theory and policy at a formal level. General topics which are covered include: financial markets; money demand; money supply; interest rate determination; monetary policy and economic activity. Course evaluation will be based on two midterm and final examination grades. There will be homework assignments which may be graded. Method of instruction is lecture and discussion. Econ 411 has as a prerequisite, Econ 402, and is the first course in a departmental sequence, the other course being Econ 412 (Stabilization Policy). (Kimball)

Section 002 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, efficient capital markets, 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. Econ 411 is the first course in a departmental sequence; the other course in the sequence is Econ 412. The required prerequisite is Econ 402, Intermediate Macroeconomics. It is helpful to have had Econ 401, Intermediate Microeconomics, also. (Wolfe)

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? Can new types of labor contracts such as the proposed "share economy" reduce the nation's unemployment? Lecture format with midterm and final exam. (Stafford)

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). (SS).

Section 001 Analysis of non-competitive behavior. This course develops at an elementary level those ideas in noncooperative game theory which have recently transformed the field of industrial organization and then applies them to various traditional topics in IO. Topics include price discrimination, entry deterrence, tacit and overt collusion and the behavior of cartels. The course has a midterm, final, and a series of problem sets. (Salant)

Section 002 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 development. There will be a midterm and cumulative final exam. (Bagnoli)

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

Section 001 and 002 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, airline, securities brokerage, 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. (Borenstein)

Section 003 This course studies the causes and effects of public economic regulation, focusing both on the substance of regulatory programs and on the particular procedures and institutions used to implement them. There are three main parts to the course. First, we consider normative and positive explanations of economic regulation, examining both market-failure and interest-group theories of the phenomenon. Second, we take up the federal antitrust laws, focusing on their substance, the incentives they create, and their effects on market structure and conduct. Topics to be covered include monopolization, collusion, mergers and other potentially restrictive practices. Third, we examine direct public regulation, first studying the effects of traditional price, output, and entry regulation of fraud, product quality, and health and safety. In this third section, somewhat more emphasis will be placed on the common features and problems of regulation in general than on the specific details of particular industries. (Katz)

F. International Economics

340(440). International Economics. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 441 or 442. (3). (SS).

Survey of the major aspects of international trade and finance, with emphasis on current policy issues. Three lectures weekly. (Stern)

441. International Trade Theory. Econ. 401 or the equivalent. No credit granted to those who have completed or are enrolled in 340. (3). (SS).

Static and dynamic determinants of comparative advantage; trade policy and economic welfare; selected topics. (Levinsohn)

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. (Almansi)

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)

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).

Examination of the structure and problems of the low-income nations; and analysis of the economic issues of development policy; and discussion of the economic relationships between the poor and rich nations of the world. Designed for students who wish a relatively nontechnical introduction to the problems of economic development. (Barlow)

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

This course is designed to encourage students to confront general issues and problems of economic development by examining specific countries and institutions. Each case study entails lectures, readings, and extensive class discussion. The case study approach attempts to relate the theoretical issues learned in previous courses to real problems faced by individuals and governments. A selection of topics includes: China's One Child Policy, Absolute Poverty in Bangladesh, Agrarian Policy in Revolutionary Nicaragua, Undocumented Migration from Mexico to the U.S., The World Bank's Project Strategies, and Intergenerational Conflict in the Family. Students are expected to have completed Economics 461 and to be familiar with economic theory. Course grades will reflect performance on a midterm, final, and term paper. (Kossoudji)

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)

467. Economic Development in the Middle East. Econ. 201 and 202. (3). (SS).

This course combines an analysis of the structure and performance of contemporary Middle Eastern economies with discussions of development issues of general interest. Issues considered in recent versions of the course include population problems, the oil industry, economic aspects of Islam, agricultural development, international migration, and trade strategies. Each issue is discussed both in general terms and in the institutional context of a specific Middle Eastern economy. May NOT be elected for credit more than once. (Barlow)

I. Urban and 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).

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. Then we will examine a series of environmental problems including hazardous wastes, asbestos in schools and in the workplace, air pollution and water pollution. There will be two problem sets, three papers, and a cumulative final exam. (Jones)

J. Public Finance

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. There will be a midterm and 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. (Roehl)

496. History of Economic Thought. Economics 201 and 202. (3). (SS).

This course gives historical and philosophical perspective to the writings of contemporary economists. Students well versed in contemporary economic theory will, we think, benefit the most. We will focus on a few 18th and 19th century economists more than half the time will be spent on Adam Smith and Karl Marx. The course is limited to 50. Only seniors have reasonable hope of being admitted from a waitlist. The required readings are in Heilbroner, THE WORLDLY PHILOSOPHERS; Adam Smith, THE WEALTH OF NATIONS; Robert Tucker, ed., THE MARX-ENGELS READER; and Joseph Schumpeter, CAPITALISM, SOCIALISM, AND DEMOCRACY. All are available in paperback at about $8 apiece. There is also a course pack of modest size costing about $10. Grades will be based on a series of short quizzes at regular intervals. Does not form part of a departmental concentration sequence. (L. Anderson and Porter)

L. Honors Program

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

The Junior Honors seminar is a prerequisite for Econ 498, Senior Honors, which is taken in the fall of the senior year. The purpose of Junior Honors is to help students do the background work necessary to writing a senior Honors thesis. For the first few weeks the seminar will discuss current areas of interest in a variety of fields within economics. Students will then be required to write and present in the seminar two brief papers (3-5 pages) outlining possible thesis topics. Each student will then expand one of these papers into a fairly detailed prospectus for a senior Honors thesis. Again, the prospectus will be presented and discussed in the seminar. In preparing the prospectus, students will work closely with the seminar coordinator and with a co-advisor. Co-advisors will generally be members of the faculty who know something of the relevant subject matter and will be chosen by individual students. All three papers will be graded. Econ 497-498 qualify as a sequence in the economics concentration. Note: Econ 406 is a prerequisite for Econ 498, so there is little point in taking 497 unless one can also complete 406 before the fall of the senior year. (Courant)

O. 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/Poli. Sci. 428/Phil. 428/Asian Studies 428/Soc. 426. China's Evolution Under Communism. Upperclass standing or permission of instructor. Not recommended for Asian Studies concentrators. (4). (SS).

See Political Science 428. (Oksenberg)

P. Accounting

271/Accounting 271 (Bus. Admin.) 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.

LECTURE Sections 001-003, AND RECITATION Section 015: 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 (Bus. Admin.) Accounting. 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 merchandising and manufacturing firms, the accounting for long-term liabilities and investments and an introduction to cost budgets and cost standards. Tools for planning and performance control are emphasized. 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.


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