A. Introductory Courses

201. Principles of Economics I. No credit granted to those who have completed or are enrolled in 400. (4). (SS).
Economics 201 concentrates on the microeconomics of the modern economy: how prices and quantities of goods and services are determined under competitive conditions as well as in other types of markets; the distribution of income and wealth; the public sector; 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 and a half hours of discussion per week (Section 101-113, 201-212, 301-312) taught by a teaching assistant. Grades are based largely on course-wide hour tests and the final exam, but there will be homework and/or 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. Cost:2 WL:None. For information about overrides, call Lynette McAdoo at 763-9242. (Section 100: Dernberger; Section 200: Barlow; Section 300: Laitner

202. Principles of Economics II. Econ. 201. No credit granted to those who have completed or are enrolled in 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 three hours of lecture per week (either 100 or 200) by the professor and one and a half hours of section meetings (101-109 or 201-212) each week by a teaching assistant. The section meetings are limited to 35 students. Cost:2 WL:Contact Lynette McAdoo, Dept. of Economics (Section 100:Hymans; Section 200:Courant)

B. Economic Theory and Statistics

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 Math 115 or equivalent, and Economics 201 (or permission of the instructor). 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. WL:4 (001:Clark; 006:Johnson)

404. Statistics for Economists. Econ. 201 and 202 and Math. 115. No credit granted to those who have completed or are enrolled in 405 or Stat. 311, 402, or 412. (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, elementary probability theory, statistical inference, and regression theory. Data analysis and interpretation of quantitative results will be emphasized. 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. (Howrey)

405/Statistics 405. Introduction to Statistics. Math. 116 or 118, 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 or are enrolled in Stat. 311 or 412. Students with credit for Econ. 404 can only elect Econ. 405 for 2 credits and must have permission of instructor. (4). (Excl).
See Statistics 405. (Hill)

406. Introduction to Econometrics. Econ. 405 or Statistics 426. (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 economic data. Previous computer experience is NOT a prerequisite. (Kmenta)

C. Monetary and Financial Economics

411. Monetary and Financial Theory. Econ. 402, and 404 or 405. 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 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. The required prerequisite is Econ 402, Intermediate Macroeconomics. Additional recommended prerequisites are Statistics (Econ 404 or 405) and Econ 401, Intermediate Microeconomics. WL:1 (Kimball)

435. Financial Economics. Econ. 401 and 405, or equivalent. (3). (Excl).
The course will introduce the economic analysis of financial markets and financial decision making. Topics covered will include asset pricing theory, net present management, and financial market behavior. The course will develop a capacity to understand and analyze policy issues relating to financial markets. There will be substantial emphasis on creative use of economic methods to think critically and constructively, through case studies of currently relevant policy problems such as regulation of mergers and takeovers and government loan guarantees. Students will work with spreadsheet and financial analysis programs, will experience the feel of the "pit" through experimental computer markets and guest lectures from market professionals, and will keep up with current finance news through daily reading of The Wall Street Journal. Midterm, final, and problem sets. Cost:2 WL:2 (MacKie-Mason)

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 the second term of a two-term offering in labor economics. The previous term covered the supply of and demand for labor, wage determination, investment in education and training, and some coverage of theories of unemployment. In this term we offered a very brief view of supply and demand, the structure of compensation, and differences in the internal labor markets of the U.S. and Japan, unions and collective bargaining, discrimination in the labor market, the labor market and technology, analysis of reasons for the slow growth of wages and wage dispersion, government employment policy, government policies which affect the labor market, and unemployment. Cost:3 WL:1 (Stafford)

E. Industrial Organization and Public Control

333. Economic Analysis of Industrial Policy. Econ. 201 and 202. (3). (Excl).
The goal of the course is a broad analysis of the questions of what has come to be called "industrial policy" and other structural policies aimed at reversing the weak performance of the U.S. economy. We will attempt to examine the subject from several perspectives. The course topics include the definition of an industrial policy, whether American industry is in a condition that merits serious concern, the use of traditional macroeconomic and trade policies, labor's stake in industrial transition, new theories of the nature of the firm, the controversial role of corporate raiding and reorganization, examination of the experience in the specific industries (autos, computers, aircraft) and the role of technology and R and D activity. A final section of the course will evaluate some specific policies and proposed remedies. Many of the topics compare U.S. institutions with those in other countries. (Stafford)

431. Industrial Organization and Performance. Econ. 401. No credit granted to those who have completed or are enrolled in 330. (3). (Excl).
An analysis of the behavior and social performance of firms. Emphasis is placed on understanding how firms compete with one another. Topics include oligopoly theory, differentiated products, entry deterrence, collusion, advertising, research and development, price discrimination and strategic rivalry using game theory. There will be a midterm and a final exam. Cost:3 WL:4 (O'Brien)

432. Government Regulation of Industry. Econ. 401. No credit granted to those who have completed or are enrolled in 330. (3). (Excl).
This course studies three classes of government intervention in the economy: (1) the antitrust laws, (2) the regulation of price, output, and entry, and (3) the regulation of quality, information, and the environment. Emphasis is placed on using microeconomics to understand the market imperfections that give rise to each regulation and to explore the consequences of the intervention for efficiency and fairness. There will be a midterm and a final exam. (O'Brien)

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 deals with the theory of international trade. It explores the important theories that explain what countries trade and why they gain from trade. These theories include the theory of comparative advantage and the factor-proportions theory of trade, as well as more recent theoretical developments. The course also deals with several other related topics, such as empirical tests and applications of trade theory, the theory of trade policy, preferential trading arrangements, international factor movements, and trade and economic development. (Stern)

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 a midterm and a final exam. Economics 441, the other half of the international sequence, is not a prerequisite. Cost: 5 WL: 2 (Bernasek)

G. Comparative Economic Systems and National Economies

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. WL:1 (Meyendorff)

453. The European Economy. Econ. 401 and 402; or permission of instructor. (3). (Excl).
The structure and performance of the Western European economies since World War II. Material is organized to illuminate the impact of governmental policies on the manner in which product, capital, and labor markets function. Substantial attention is devoted to Project 1992. Also treated are the Common Agricultural Policy, the competition policy, and the proposed Economic and Monetary Union of the European Communities. Students should be prepared to participate frequently in class discussions. Cost:2 WL:1 (Adams)

455. The Economy of the People's Republic of China. Econ. 201 and 202. (3). (Excl).
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. Cost:3 WL:1 (Dernberger)

456. The Soviet Economy. Econ. 201 and 202. (3). (Excl).
A comprehensive and intensive analysis of the Soviet economy, including aspects of (1) economic history; (2) operation and problems in regard to planning, pricing, finance, management, labor, agriculture, and foreign economic relations; (3) assessment of economic performance; and (4) economic reform. Assigned readings and lectures. Two examinations. May be used (along with Econ 451) for departmental concentration sequence in Comparative Economic Systems. WL:1 (Meyendorff)

H. Economic Development

462. The Economics of Development II. Econ. 401 and Econ. 360 or 461. (3). (Excl).
This course is the second part of a two-course sequence on the economic development of third world countries. Economics 462 examines in some detail selected topics on development. It focuses on policy issues by studying analytical approaches to policy determination and how policy determination and how policy might affect different groups in the economy. On each of the topics the course will look at the experiences of individual countries. Three broad topics are slated for examination: agricultural production, price policy and marketing; comparative advantage, trade and exchange rates; macroeconomic policy reform and structural adjustment. The countries are likely to be Ghana, Malaysia, Mexico, Morocco, South Korea, Thailand and Zambia. The overall course grade will be based on a 10-page paper (30%), six brief quizzes (30%) and a final exam (40%). Students will be expected to purchase a course pack of readings. Additional readings will be on reserve. The method of instruction will primarily be lecture but there will be ample opportunity for discussion. (Steedman)

466. Economics of Population. Econ. 401. (3). (Excl).
An introduction to economic analysis of demographic behavior. The course uses an economic perspective to analyze the dramatic changes in fertility, morality, and marriage in recent decades in both industrialized and developing countries. Data on demographic economic trends for a wide variety of countries are used throughout the course. The course demonstrates recent innovations in the application of microeconomic theory to demographic behavior, including fertility, marriage, and migration. Students are also introduced to basic techniques of demographic measurement and mathematical demography. Topics include the economic consequences of the baby boom, the effects of an older age structure on the social security system, and the relationship between population growth and natural resources. Students write a short paper providing an economic-demographic analysis of their home community or other geographic area. Other coursework includes problem sets and the midterm and final examinations. (Lam)

467. Economic Development in the Middle East. Econ. 201 and 202. (3). (Excl).
This course examines some leading issues of economic development, each one considered in the context of a specific Middle Eastern or North African country. Examples of issues to be discussed include agricultural policy (in the context of Morocco), population growth (Egypt), the oil industry (Saudi Arabia), the economies of Islam (Iran), and programs of structural adjustment (Turkey). The course also provides a review of economic development theory, and an assessment of the development performance of all countries in the region. In addition to the final exam, there will be one hour exam and a term paper. (Barlow)

I. 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 introduction to Environmental and Natural Resource Economics. Topics may 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 (in School of Natural Resources) to get on waitlist. (Swierzbinski)

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 (MacKie-Mason)

K. Economic History

491/Hist. 491. The History of the American Economy. Econ. 201 and 202. (3). (Excl).
This course surveys topics in the Economic history of the United States from colonial times to the present. Topics include the economic and political aspects of The Revolutionary War, The Constitutional Compromise, The Industrial Revolution, Slavery, The Civil War, The Rise of Big Business and Government, The Great Depression. Also included are interpretive overview of labor history, monetary history, and race and economics.

Section 001. In this section, added emphasis will be placed on racial, gender and ethnic inequality in American economic development. This section WILL NOT satisfy the Junior/Senior writing requirement.

Section 002. This section may be used to satisfy the Junior/Senior writing requirement.

L. Other Topics in Economics

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

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. A midterm, final, and regular problems sets are given. Cost:3 WL:3 (Courant)

M. Honors Program, Seminars, and Independent Research

495. Seminar in Economics. Econ. 401, 402, and 404 or 405; and permission of instructor. (3). (Excl). May be elected for a total of 6 credits.
Admission Information For All 495 Seminars
: Closed at CRISP. To apply for admission into the 495 seminar, students must provide both an unofficial transcript and a completed application no later than Friday, November 1. The transcript should be requested from the General Information Window in the LS&A lobby (open 8-4:15 Mon-Fri) and should be sent to the economics undergraduate office, Room 158 Lorch Hall. The fee is $1.00 and takes several days. An application form is available from Lynette McAdoo (763-9242) in the economics undergraduate office, and should be returned to her. Admission will be the decision of the instructor and will be posted by November 13.

Section 001. Trade Policy, Competitiveness and U.S.-Japanese Economic Relations. This course will examine issues raised by the increasing integration of the global economy. Particular emphasis will be placed on the structure and operation of the Japanese economy and its implications for present and future U.S.-Japanese economic relations. Special topics covered will include the Uruguay Round, Regional Free Trade Areas, competition in high technology, industrial policy, liberalization of financial markets and stabilization policy. To apply, follow the instructions under "Admission Information" applicable to all of the 495 seminars. (Saxonhouse)

Section 002: Law and Economics. This seminar will examine a few current policy issues in depth. Students will be required typically as part of a small team to pursue an original research project and write up the results as a paper. Typical projects might include evaluation of no-fault automobile insurance programs, evaluation of alternate methods of encouraging trash recycling, analysis of why state and local governments vary in their reliance on user fees versus taxes, an analysis of the municipal bankruptcies in the U.S. and an examination of the effect of differences in state laws on divorce rates. WL:5 (White)

Section 003: Applied Microeconomic Modelling. This seminar will illustrate how elementary microeconomic tools can be used to illuminate observed real-world phenomena and to evaluate alternative policy interventions. Students will be required typically as part of a team to investigate in depth a single local, national or international topic. It is anticipated that, in most cases, topics will be suggested by the instuctors. Emphasis will be placed on accurate understanding of real-world institutional details, the art of isolating salient aspects of problems in formal but tractable model, the testing of that model by controlled laboratory experiments, and when possible the comparison of the predictions of the model with real world data. Papers and oral presentations will be required. To apply, follow the instructions under "Admission Information" applicable to all of the 495 seminars. (Salant)

O. Accounting

Effective Fall Term, 1991, Accounting 271 and 272 are no longer crosslisted by the Department of Economics. They are Business School courses only and, as such, will no longer generate LS&A credit. Candidates for the A.B. or B.S. degrees may count 12 credits of non-LS&A course work in the minimum 120 credits required for a degree. See page 15 of the LS&A Bulletin for further information on non-LS&A course work.

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