Courses in Economics (Division 358)

A. Introductory Courses

101(201). Principles of Economics I. No credit granted to those who have completed or are enrolled in 400. (4). (SS). (QR/2).

Economics 101 is the first part of the two-term introduction to economics. Both 101 and 102 are required as prerequisites to the concentration and to upper-level courses in economics. Economics 101 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 determination of wage rates; the public sector; environmental issues; international trade; and related topics of current interest. The course format consists of three one-hour lectures per week (either Section 100, 200, or 300) taught by the professor, and 1.5 hours of discussion per week (Sections 101-111, 201-215, 301-312) taught by a graduate student instructor. Grades are based largely on course-wide hour tests and the final exam, but there will be homework and possibly quizzes in the sections. Prerequisites: high school algebra and geometry and a willingness to use it. Cost:2 WL:1; For information about overrides, call the Undergraduate EconomicsOffice at 763-9242. (100:Gerson; 200:Morgan; 300:Sedo)

102(202). Principles of Economics II. Econ. 101. No credit granted to those who have completed or are enrolled in Econ. 400. (4). (SS). (QR/2).

Economics 101 and 102 are required as prerequisites to the concentration and to upper-level courses in Economics. In Economics 102, 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 GDP, unemployment, inflation, international trade, and economic growth. The course format consists of three hours of lecture per week (either 100 or 200) taught by the professor, and 1.5 hours of section meetings (101-110 or 202-211) each week taught by a graduate student instructor. Cost:2 WL:Contact the Undergraduate Office, Dept. of Economics, 158 Lorch Hall (Section 100:Hymans; Section 200:Johnson)

B. Economic Theory and Statistics

401. Intermediate Microeconomic Theory. Econ. 101 and 102, and Math. 115. (4). (SS). (QR/1).

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. Economics 401 is a prerequisite for many other courses offered in Economics. Concentrators in economics 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 twice a week. WL:1 (Morgan)

402. Intermediate Macroeconomic Theory. Econ. 101 and 102, and Math. 115. (3). (SS). (QR/1).

This course in macroeconomics deals with the determination of broad economic aggregates such as national income, employment, the price level, and the balance of payments in both the short run and the long run. 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. Economics 402 is a prerequisite for many other courses offered in Economics. Concentrators in economics are required to elect this course and are encouraged to complete it early in their concentration program. It is recommended that students take Economics 401 before 402. Cost:3 WL:2 (Shapiro)

404. Statistics for Economists. Econ. 101 and 102 and Math. 115. No credit granted to those who have completed or are enrolled in Econ. 405 or Stat. 311, 402, or 412. (4). (Excl). (BS). (QR/1).

This course provides an introduction to descriptive statistics, probability theory, statistical inference, and regression analysis needed to understand and appreciate empirical work in economics. 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 (Howrey)

405/Stat. 405. Introduction to Statistics. Math. 116 or 118. Juniors and seniors may elect this course concurrently with Econ. 101 or 102. 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). (BS). (QR/1).

See Statistics 405. (Woodroofe)

406. Introduction to Econometrics. Econ. 405 or Statistics 426. (4). (Excl). (BS).

Econometrics uses economic theory and observation and the tools of statistical inference to analyze economic phenomena. Economics 406 will focus on the general linear statistical model and will examine the difficulties which arise in applying statistical procedures to economic research problems. The sequence Economics 405-406 covers statistical inference and econometric models in more depth and more rigorously than Economics 404. Students electing Economics 406 should have completed Math 116, Economics 101-102, and either Economics 405 or Statistics 426. Assignments will include derivations and numerical examples in problem sets as well as extensive use of computers for retrieval and transformation of economic data and statistical analysis of econometric models. (Wolfe)

C. Monetary and Financial Economics

418. Business Cycles. Econ. 402. (3). (Excl).

This course will look at business cycle theory in a way that combines macroeconomics and microeconomics. It will emphasize economic dynamics, particularly the reactions of output, consumption, investment, the real wage, the real interest rate, and inflation to fiscal, monetary, and technological shocks. Prerequisites: Economics 401 and 402. Calculus will be used extensively for maximization. (Kimball)

435. Financial Economics. Econ. 401 and 405, or equivalent. (3). (Excl).

This class introduces the economic analysis of financial markets and financial decision making. Topics covered include asset pricing theory (the valuation of stocks, bonds, and options), net present value analysis, portfolio management, and financial market organization and behavior. The course develops the capacity to analyze investment strategies and policy issues from the standpoint of economic theory (as opposed to conventional wisdom). Our main objectives are to understand WHY the financial markets work the way they do, to develop useful tools for the analysis of investment opportunities, and to use economic methods to think critically about policy issues such as government regulation of financial markets and the taxation of investment returns. Students will gain experience with actual financial markets through guest lectures from market professionals, tracking their own "model portfolios," and regular reading of The Wall Street Journal. (Hussman)

D. Labor Economics

320. Survey of Labor Economics. Econ. 101 and 102. No credit granted to those who have completed or are enrolled in 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. Cost:2 WL:1 (Sedo)

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 will offer a very BRIEF review of supply and demand, and turn to labor demand, the structure of compensation, unions and collective bargaining, discrimination in the labor market, government employment policy, government policies which affect the labor market, and unemployment. Cost:1 WL:1 (Jantti)

E. Industrial Organization and Public Control

432. Government Regulation of Industry. Econ. 401. (3). (Excl).

This course describes and analyzes the efforts of governments to control the market power of business enterprises. Topics include dominant position, oligopolistic cooperation, vertical restraint, and merger. Emphasis is placed on American policies, especially antitrust law and regulation by administrative commission. Economics 431 is not required. Students should be prepared to participate frequently in class discussions. Cost:2 WL:1 (Adams)

438/Health Management and Policy 661 (Public Health). Economics of Health Services. Econ. 401 or HMP 660, or permission of instructor. (3). (Excl).

This course will introduce students to the fundamental concepts of the field of health economics. The basic framework of economics will be used to analyze the behavior of hospitals, physicians, insurers, and health care consumers. The tools of economics will be applied to managerial issues such as make-or-buy decisions or pricing decisions. Additionally these economic tools will be used to analyze how various parties might respond to changes in the health care system. By the end of the course students should be able to assess the potential impact of hypothetical changes in the health care system on costs and access as well as on the well-being of hospitals, physicians, and insurers. Lecture format. Two exams. Cost:2 WL:4 (Chernew)

F. International Economics

441. International Trade Theory. Econ. 401 or the equivalent. (3). (Excl).

This course deals with the theories of international trade 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, international factor movements, preferential trading arrangements, multilateralism, and trade and the environment. Cost:2 WL:1 (Singh)

442. International Finance. Econ. 402 or the equivalent. (3). (Excl).

This course analyzes the macroeconomic and financial interactions between countries. Theories of the balance of payments, the exchange rate, and the international component of income determination are developed. Examples of fixed and flexible exchange-rate regimes are covered, including the gold standard, Bretton Woods, and the EMS. There are graded homeworks, one midterm, and a final exam. Cost:3 WL:1 (Bernasek)

G. Comparative Economic Systems and National Economies

454. Economics of Japan. Econ. 101 and 102. (3). (Excl).

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. Cost:4 WL:1 (Saxonhouse)

455. The Economy of the People's Republic of China. Econ. 101 and 102. (3). (Excl).
Section 001 Economic Development in Greater China.
Examines the process of economic development through the experiences of China, Taiwan, and Hong Kong. Emphasis is on socialist economic reforms in mainland China since 1978, including agricultural reforms, rural industrialization, reform of state-owned enterprises, international trade and foreign investment, fiscal and financial reforms, and regional inequality and poverty. Other topics: pace and sequence of reform in socialist economies; record of socialist planning in China; Taiwan's structural transformation; political economy of unification of Hong Kong in 1997. (Park)

H. Economic Development

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, mortality, and marriage in recent decades in both industrialized and developing countries. Data on demographic and 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. Computer-based exercises are used to illustrate economic and demographic concepts and examine empirical evidence from a variety of populations. Students write a paper providing an economic-demographic analysis of their home community or other geographic area. Other coursework includes problem sets, short writing assignments, and the midterm and final examinations. Cost:2 WL:1 (Lam)

I. Environmental Economics

370/NR&E 470. Natural Resource Economics. Econ. 101 and 102. 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 include externalities, unpriced goods, cost-benefit analysis, resource scarcity, exhaustible resource depletion, renewable resource harvesting, and common property problems. (Helsand)

472. Intermediate Natural Resource Economics. Econ. 401 or NR&E 570. (3). (Excl).

This course explains the conceptual framework used by economists to analyze the usage over time of replenishable resources (such as water, trees, fish, and wildlife) and nonreplenishable resources (such as oil or minerals). For each of these resources, increased consumption today inevitably has future consequences. The course therefore emphasizes the theory of intertemporal choice. Comparisons will be made between the market outcome when self-interested agents interact over time and the efficient (surplus-maximizing) intertemporal exploitation of the resources. The courses 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

380. Public Finance. Econ. 101 and 102. No credit granted to those who have completed or are enrolled in 481 or 482. (3). (Excl).

This course offers a general introductory survey of the field of public finance. The topics covered include: (1) market failures, (2) major federal expenditure programs (focusing on the welfare system), (3) program and project evaluation, and (4) major Federal, State, and Local taxes and their effects. A lecture/discussion format is used. (Swann)

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

Economics 482 is the second half of the undergraduate public finance sequence, concentrating on government revenues. The theory of optimal taxation and tax incidence will be examined. From this framework, the equity and efficiency of various forms of government finance will be analyzed. These include the personal income tax, corporate income tax, excise taxes, and deficit financing. The course will focus on theoretical issues augmented by contemporary policy. Class format will be lecture and discussion. (Swann)

K. Economic History

491/Hist. 491. The History of the American Economy. Econ. 101 and 102. (3). (Excl).

This course examines the economic history of the United States from colonial settlement to World War II. We will focus on the sources of the country's economic growth, trends in income distribution, regional integration, and changes in political-economic institutions. We will pay particular attention to the role of government policy in influencing economic outcomes. Students will be evaluated on the basis of several essays, midterm and final exams, and class discussion. Cost:2 WL:1 (Levenstein)

L. Other Topics in Economics

398. Strategy. Econ. 101. (3). (Excl).
Section 001 Strategy and Equity.
This course is an introduction to the science of strategic thinking and the art of equity. Basics of non-cooperative as well as cooperative game theory will be covered via simple cases in business, international crises, mass elections, legislative voting, cost sharing, college admissions, housing lotteries, kidney allocation, etc. Cost:2 WL:3 (Snmez)

490. Current Topics in Economics. Econ. 401, 402, 404 or 405. (3). (Excl).

This course covers specialized topics and topics that span subfield in economics. The topics are presented at an advanced undergraduate level. Topics vary with the interests of the faculty member teaching the section.

Section 001. (Toder)

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 Registration. To apply for admission into the 495 Seminar, students must provide a completed application no later than Friday, November 1. Application forms are available from the Undergraduate Economics Office (158 Lorch Hall) and the completed forms should be returned there. Admission will be the decision of the instructor and will be posted outside 158 Lorch by Friday, November 8.

Section 001 The United States Macroeconomy, 1970-1994. This seminar will involve an intensive consideration of the major economic problems of the U.S. economy that emerged in the 1970's and 1980's, and will culminate in quantitative research projects. Class members will work in groups of two or three on topics chosen from a list suggested by the instructor at the beginning of the term. One of the end goals will be empirical papers which might eventually be eligible for publication in professional journals. The course is not a survey of the economic history of the period, but rather will concentrate on some of the dominant themes in economic policy during this period. Among the topics that we may emphasize are: inflation and disinflation; labor market changes and the evolution of the natural rate of unemployment; changes in real interest rates, stock prices, and other asset prices; the experience with flexible exchange rates; fiscal and current account deficits; the conduct of monetary policy; issues of productivity growth; and changes in the distribution of income and wealth. Data for the research projects need not be limited to the U.S. in this limited time period. Comparative studies of other time periods, and possibly other countries, that address the conceptual problems discussed in the course are encouraged. Only quantitative projects will be accepted. Students should have taken Econ 405 or a comparable statistics course, and at least be concurrently enrolled in Econ 406 or a comparable econometrics course. (Barsky)

Section 002 Economic Growth and the Open Economy. Economic growth is a major determinant of human welfare. From 1945 to the mid-1970's, all advanced market economies simultaneously experienced historically unprecedented growth in output and productivity. Many less advanced economies also made extraordinary gains during this period. In the mid-1970's this Golden Age of international economic prosperity abruptly ended. While some economies still exhibit rapid growth, Golden Age standards have not been restored in general. The consequences of the slowdown have been widely felt. During this course we will: (1) Investigate empirically the dynamics of advanced market economies during and after the Golden Age; (2) Critically examine how economic analysis explains growth in general, and the Golden Age phenomenon in particular. Attention will be given to international linkages, such as balance of payments constraints; and (3) Consider the role of economic policy and economic institutions in promoting growth. (Jarlusic)

498. Honors Independent Research. Open only to students admitted to Honors concentration in economics. (1-4). (Excl). (INDEPENDENT). May be repeated for a total of 8 credits.

This course is for undergraduates writing senior Honors theses. Each student's grade for the course and levels of Honors achieved will depend entirely on the quality of the thesis, as evaluated by the thesis advisor with whom the student has arranged to work.

499. Independent Research. Written permission of staff member supervising research, and permission of Economics concentration advisor. (1-4). (Excl). (INDEPENDENT). May be elected for a total of 8 credits. No more than 4 credits may be used in concentration program.

Student and instructor agree on a substantial piece of work involving reading or research. Evaluation is based on the written work, either papers or examinations.

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