Department
of EconomicsUniversity of Michigan
238 Lorch Hall
611 Tappan Street
Ann Arbor, MI 48109-1220
313.764.2355
website: http://www.econ.lsa.umich.edu
Department
of EconomicsEconomics is usually defined as the study of the ways in which a society uses scarce resources in the production of goods and services to satisfy unlimited human wants. Many of the problems facing society will be better understood by applying the tools of economic analysis. Economists deal with recession and unemployment, inflation, poverty, environmental questions, governmental spending and taxation, the banking system and the money supply, labor unions, government regulation of business, foreign trade and balance of payments problems. Economists also study the economic systems of other nations, both the industrialized countries and the underdeveloped countries of the World.
Economics is a social science and is concerned with people in their roles as economic decision makers: as business people, workers, consumers, investors, and taxpayers. Economics can be somewhat more precise than other social sciences because it deals with variables that can be quantified ñ tons of steel, hours of labor, dollars worth of national output, price levels, unemployment rates, and interest and profit rates. Human economic behavior is observed and recorded, leading to the development of economic principles or theories. When tested and found valid, economic theories may be used to predict future economic behavior and to provide a basis for proposing economic policies.
The Department of Economics at the University of Michigan celebrated its centennial in April of 1980. Through its long and distinguished history it has counted among its faculty and alumni many eminent scholars and public servants. The department is generally ranked among the top fifteen in the country. It offers an undergraduate concentration program which may be used as partial fulfillment for the College's requirement for the Bachelor of Arts or Sciences degree. Economics may also be elected as an academic minor. The department also has a graduate program which awards a Ph.D. and a Master's of Applied Economics through the Rackham School of Graduate Studies.
Economists are employed by banks and other financial institutions, industrial corporations, consulting and research firms, international organizations and government agencies at all governmental levels, as well as by colleges and universities. Graduate study is necessary to prepare for a career as a professional economist. The Ph.D. is usually required for academic careers in four year institutions and for higher level positions in economic agencies of the federal government. At least a Master's degree is required for senior research positions in government or business.
Most undergraduate students who concentrate in economics do not intend to become professional economists. They choose economics as a field of study because it is a good preparation for graduate or professional education in many fields: law, business administration, public administration, public health, hospital administration, urban planning, social work, consumer advocacy, and natural resource management. A large number of graduates also enter the job market each year with the A.B. degree and find employment in business and government jobs. Economics is a valuable undergraduate concentration because it develops analytical skills and clarity and precision of expression. It also provides students with knowledge of economic institutions and some understanding of how a complex economic system works.
Students planning to concentrate in economics should take three prerequisite courses: ECON 101 and 102 (Principles of Economics I and II), and MATH 115 (Calculus I), each of which must be completed with a grade of at least "C." A second course in calculus (MATH 116) is highly recommended.
One of the Honors alternatives to MATH 115 may be substituted for MATH 115. Advanced placement credits in MATH 121 may be substituted for MATH 115, but students who scored less than a 4 on the BC Calculus exam are encouraged to elect one of the calculus courses on the placement list before proceeding to economics courses having a MATH 115 prerequisite. Credits in MATH 120 alone do not satisfy the mathematics prerequisite for an economics concentration or minor. Students with this credit may complete the economics mathematics prerequisite by completing, with grade at least C, one of the calculus courses on the placement list (MATH 116, 156, 175, 185, 186, 295). Students with a serious interest in the study of economics are strongly encouraged to continue the study of calculus beyond MATH 115. MATH 116, 215, and 217, or their Honors equivalents, are recommended for students with an interest in quantitative economics. Students with a serious interest in advanced research should elect ECON 405 (or STATS 426) and ECON 406.
Students desiring to do graduate work in economics will need strong preparation in mathematics. While completing the prerequisite courses, the student consults with a concentration advisor and selects a program which meets the following minimum requirements.
An economics concentration plan must include: ECON 401 (Intermediate Microeconomics) and ECON 402 (Intermediate Macroeconomics), each completed with a grade of at least C-, ECON/STATS 405 (Introduction to Statistics), ECON 404 (Statistics for Economists), or STATS 426 (Introduction to Mathematical Statistics), and 15 additional credits in approved upper level (300+) economics courses, including at least 6 credits in courses with ECON 401 or ECON 402 as a prerequisite. The remaining 15 upper-level credits are elected from the following economic fields: economic theory and statistics, monetary and financial economics, labor economics, industrial organization and public control, international economics, comparative economic systems and national economies, economic development, environmental economics, public finance, economic history, and other topics in economics.
Students who qualify may pursue the Honors concentration in Economics. Application is made during the fall term of the junior year. The general requirements are a cumulative grade point average of at least 3.5 with mostly A's in economics courses. Admission to the departmental Honors Program is not limited to students who have been in the College Honors Program during their first and second years. An Honors concentration plan must include ECON 405 (Introduction to Statistics) or STATS 426 (Introduction to Mathematical Statistics) and ECON 406 (Introduction to Econometrics). In addition, Honors concentrators must complete a senior Honors thesis. The senior Honors thesis may be an extension of concentration course work and normally includes original work completed by the student under the direction of a faculty advisor and the director of the Honors Program in Economics. Honors concentrators are given priority in election of one section of ECON 495 (Seminar in Economics). Honors concentrators have an opportunity to elect ECON 498 (Honors Independent Research) in order to complete the senior Honors thesis during the senior year. Students who successfully complete the senior paper, meet all College and departmental graduation requirements, and have an overall grade point average of at least 3.2 are graduated with Honors in Economics.
The Department of Economics offers a special five-year joint degree with the Gerald R. Ford School of Public Policy (SPP), leading to a Bachelor's degree in economics and a Master's degree in Public Policy (M.P.P.). Students may apply for admission to this accelerated program during their junior year. Those who are admitted begin graduate work in public policy and administration during their senior year by electing the full sequence of core courses in the SPP program, some of which simultaneously satisfy the requirements for a concentration in economics.
Two student organizations provide activities of interest to economics students: Michigan Economics Society and Michigan Journal of Economics. The Michigan Economics Society provides peer tutoring, advising, and social interaction. The Michigan Journal of Economics, the oldest undergraduate economics journal in the country, publishes substantive articles written by and for students.
Each year the Department of Economics awards two undergraduate prizes. The Sims Prize is awarded to the most promising junior concentrating in economics. The Osterweil Prize is awarded to the most outstanding graduating senior who has also shown a high degree of social awareness.
In addition, the John Elliot Parker Prize may be awarded yearly in the spring to an economics undergraduate student for an outstanding written contribution in the area of labor economics or human resources.
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