Courses in Economics (Div. 358: arranged by groups)

A. Introductory Courses

201. Principles of Economics I. 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 three one-hour lectures per week (either Section 100, 200, 300) taught by the professor and one hour of discussion per week (Section 101-117, 201-217, 301-317) taught by the teaching assistants. Grades are based largely on course-wide hour tests and the final exam, but there will 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. [WL:1,4]

202. Principles of Economics II. Econ. 201. No credit granted to those who have completed Econ. 400. (4). (SS).

Economics 201 and 202 are required as prerequisites to the concentration and to upper-level courses in Economics. In Economics 202, the fundamental concepts and theories of macroeconomics are developed and used to analyze problems of current interest. The major concerns of this course are the determinants of GNP, unemployment, inflation, international trade, and economic 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 035) each week by a teaching assistant. The section meetings are limited to 35 students. [Cost:2] [WL:1,4] (Weisskopf)

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 option of further courses in economics or of economics as a possible concentration should take the two-term introductory course, Economics 201 and 202.

B. Economic Theory and Statistics

401. Intermediate Microeconomic Theory. Econ. 201 and 202, and Math. 115. (4). (SS).

This course deals with the theoretical analysis of consumers, firms, markets, and price determination. The analysis is rigorous, using the tools of algebra, geometry, and elementary calculus in constructing models. Prerequisites include 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. [WL:1,4] (Binmore)

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

This course in macroeconomics deals with the theory of broad economic aggregates such as national income, employment, the price level, and the balance of payments. Rigorous analysis is used to understand the forces that determine these economic variables, and how they are affected by public policies. It is predominantly a lecture course, with grades based on hour test(s) and final exam. Prerequisites include one term of calculus. Economics 402 is a prerequisite for many other courses offered in Economics. Concentrators are required to elect this course and are encouraged to complete it early in their concentration program. It is strongly recommended that students take Economics 401 before 402. [WL:1,4]

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

This course is designed to enable students to read critically empirical literature in economics and other social sciences. Topics covered include descriptive statistics, regression theory, 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. [Cost:1] [WL:1] (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). (Excl).

See Statistics 405. (Hill)

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

Economics 406 is an introduction to the statistical analysis of economic relationships. Most of the course focuses on the theory and application of regression analysis. Students are expected to be familiar with elementary calculus. The course work includes examinations and assignments including computer exercises involving analysis of economic data. Previous computer experience is NOT a prerequisite. [Cost:2] [WL:3] (Kmenta)

408. Consumer Economics. Econ. 201 and 202. (3). (Excl).

This course is intended to teach insights from economics regarding major consumer decisions such as schooling, on-the-job training, home ownership, the acquisition of other major consumer durables, savings and investing, retirement planning and life insurance. It amounts to a cost-benefit analysis of these decisions, and includes discounting and present value, adjustments for risk and uncertainty, understanding imputed flows of income and expenses, sunk costs, tax effects, etc. Knowledge of intermediate microeconomic theory is NOT assumed. [Cost:2] [WL:3] (Duncan)

C. Economic Stability and Growth

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

Economics 411 focuses on modern financial markets and the role of monetary policy in influencing asset prices and the economy. Monetary and financial economics are developed at a formal level. Topics covered include financial institutions and markets, interest rate determination, portfolio theory, capital markets, the regulation of financial institutions, the money supply process, money demand, and monetary policy. Evaluation will be based on homework assignments, two midterms, and the final exam. Method of instruction is lecture and discussion. Econ 411 is one of two courses in a departmental sequence; the other course in the sequence is Econ 412. The required prerequisite is Econ 402, Intermediate Macroeconomics. Additional recommended prerequisites are Statistics (Econ 404 or 405) and Econ 401, Intermediate Microeconomics. [Cost:3] [WL:1] (Wolfe)

D. Labor Economics

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

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. [Cost:2] [WL:1] (Wellington)

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. [Cost:2,3] [WL:1] (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). (Excl).

Section 001 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. [Cost:2] [WL:1] (Bagnoli)

Section 002 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. [WL:1,4] (Salant)

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

Section 001 This course studies government policies toward business. Government intervention in private business takes three forms in the U.S.: antitrust laws, direct regulation of price, output, and entry, 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, natural gas, 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. [Cost:3] [WL:2] (O'Brien)

438/HSMP 661 (Public Health). Economics of Health Services. Econ. 401 or permission of instructor. (3). (Excl).

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. It then examines the efficiency with which medical services are produced, public policies, and the financing of medical services. Other topics include the demand for medical care, hospitals, and medical manpower (physicians, nurses, medical education), regulatory and competitive strategies to improve efficiency, and national health insurance. Lecture format. Two exams. [Cost:3] [WL:1] (Berki)

439/Bus Admin 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. (Pirrong)

F. International Economics

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

This course develops the basic concepts and techniques of international trade theory, and applies them to examine some issues of current policy interest in the U.S. and in some other countries. [Cost:2] [WL:1] (Levinsohn)

442. International Finance. Econ. 402 or the equivalent. No credit granted to those who have completed or are enrolled in 340. (3). (Excl).

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. Economics 441, the other half of the international sequence, is not a prerequisite. [Cost:5] [WL:2] (Bernacek)

G. Comparative Economic Systems

350. Comparative Economic Systems. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in 451. (3). (Excl).

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. [WL:1,4] (Linz)

455. The Economy of the People's Republic of China. Econ. 201 and 202. (3). (Excl).

Analysis of economic organization, 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 concentrators for two-course sequence in a field. [WL:1,4] (Dernberger)

456. The Soviet Economy. Econ. 201 and 202. (3). (Excl).

A comprehensive and intensive analysis of the Soviet economy, including (1) economic history; (2) operation and problems in regard to planning, pricing, finance, management, labor, agriculture, and foreign economic relations; and (3) assessment of economic performance. Assigned readings and lectures. Two examinations. May be used (along with Econ. 451) for departmental concentration sequence in Comparative Economic Systems. (Linz)

H. Economic Development and National Economies

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

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. [WL:1,4] (Steedman)

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

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 401, 402, and 461. Course grades will reflect performance on a midterm, final, and term paper. [WL:1,4] (Kossoudji)

I. Urban and Environmental Economics

370/Nat. Res. 470. Natural Resource Economics. Econ. 201 and 202. No credit granted to those who have completed or are enrolled in Econ. 471 or 472. (3). (Excl).

A one-term pre-professional introduction to Environmental and Natural Resource Economics. Topics include externalities, unpriced goods, cost-benefit analysis, resource scarcity, exhaustible resource depletion, renewable resource harvesting, and common property problems [WL:5. See Office of Academic Programs (School of Natural Resources) for Override.]

J. Public Finance

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

Economic analysis of the equity and efficiency effects of major U.S. taxes, including the personal income tax, the corporate income tax, and the social security tax. Examination of commonly proposed tax changes. Lecture method; midterm and final exams; term paper. Text: PUBLIC FINANCE, H. Rosen. [Cost:2] [WL:1] (Slemrod)

485. Law and Economics. Econ. 401. (3). (Excl).

A Collegiate Fellows course. See page 3 of this COURSE GUIDE for a complete list of Collegiate Fellows courses.

This course analyzes legal issues from an economic perspective. It covers 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. There will be midterm and final exams, but no paper. Readings include Cooter and Ullen's LAW AND ECONOMICS and Polinsky's INTRODUCTION TO LAW AND ECONOMICS. [WL:1,4] (White)

K. Economic History

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

This course covers European Economic Theory from the Middle Ages to the twentieth century. The course focuses on the causes of economic development in Europe, and the economic forces shaping social institutions in various periods. The first third examines pre-industrial Europe, the next third looks at the Industrial Revolution in Britain and its aftermath, and the final third considers the character and problems of European economies since World War I. [Cost:2] [WL:1] (Clark)

L. Honors Program

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

This is the first term of a two-term sequence (Economics 497-498) in which Honors students formulate and carry out a substantial research project culminating in a thesis. Students are expected to complete a detailed thesis proposal, including an annotated bibliography, by the end of the first term. Each student will also be expected to make an oral presentation based on work in progress. Credit is given separately for Economics 497 and Economics 498. [WL:1,4] (Saxonhouse)

N. Institute of Public Policy Studies Courses

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

This course teaches students how to evaluate government programs. It covers the mechanics of benefit-cost analysis, how scarce or unemployed resources should be priced, the choice of proper time-discount rates, treatment of income distribution issues, human capital, environmental benefits, inter-governmental grants, tax expenditures, and regulatory problems. An essential part of the course is a term project each student selects a program and evaluates it. [Cost:2] [WL:1] (Porter)

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. (Szporluk)

428/Asian Studies. 428/Phil. 428/Pol. 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). (Excl).

See Political Science 428. (Oksenberg)

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 covers basic financial accounting principles for a business enterprise. Topics include the accounting cycle, merchandising accounts, asset valuation, income measurement, partnership accounting, and corporation accounting. [Cost:2] [WL:2]

CSP section available. See the Comprehensive Studies Program (CSP) section in this GUIDE.

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).

This course completes the coverage of financial accounting principles and provides an introduction to management accounting. Topics include investments, long-term liabilities, the statement of changes in financial position, consolidated statements, job-order and process cost accounting, special analysis for management, and standard costs. [Cost:2] [WL:2]

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