Economics (ECON)
Chair: Associate Professor Michael Hemesath
Professors: H. Scott Bierman, Mark T. Kanazawa, George H. Lamson, Stephen R. Lewis, Jr., Martha White Paas, Stephen H. Strand
Associate Professors: Michael Hemesath, Jenny Bourne Wahl
Assistant Professor: Donna M. Gibbons
Visiting Instructor: Nathan D. Grawe
Economics analyses the ways in which resources can be most effectively organized to meet the changing goals of a society. Courses in the department combine theoretical and applied economics as a basis for developing and evaluating alternative public policies for entire economies and for the institutions and organizations within an economy. Department courses give a broad and practical perspective for those considering careers in law, government, business, education, journalism or social service, and also meet the needs of students seeking graduate work in economics, business administration, and public affairs. The basic introductory courses, 110 and 111, are prerequisites to most advanced courses and while they offer a good foundation for further work in economics, they have also been designed for those students who have not yet selected majors and for those in other majors seeking an introduction to the analysis of economic theory and policies. Note: Either course in the principles sequence, Economics 110 or 111, can be taken first. Independent study (291 or 391) for those with special research interests can be taken with any faculty member.
Requirements for a Major:
All economics majors are required to successfully complete the two introductory courses (110 and 111), the three core courses (330, 331, and 332), the integrative exercise (400), and 30 additional credits in economics at the 200 level or above. Math 215 (or 315) is a prerequisite for 332 and is also required.
Mathematics 111 or its equivalent is a prerequisite for Economics 330. Any student intending graduate work in economics should also take Mathematics 121, 211, and 232. Courses teaching additional skills such as computer science, advanced rhetoric, and analysis of political and social policies are highly recommended. Internships may not count towards the major unless expressly permitted by the Chair.
Economics Courses
ECON 110. Principles of Macroeconomics The purpose of this course is to give the student a foundation in the general principles of economics as a basis for efficient citizenship and, when combined with 111, as a preparation for all advanced study in economics. Topics include: analysis of the measurement, level, and distribution of national income; the process of inflation and depression; the role and structure of the banking system; fiscal and monetary stabilization techniques; implications of and limits to economic growth; and international economic relations. 6 credits cr., SS, Fall,Winter,Spring—N. Grawe, M. Hemesath, S. Strand, M. Paas
ECON 111. Principles of Microeconomics The purpose of this course is to give the student a foundation in the general principles of economics as a basis for efficient citizenship and, when combined with 110, as a preparation for all advanced study in economics. Topics include: the formation of prices under competition, monopoly, and other market structures; the determination of wages, profits, and income from capital; the distribution of income; and an analysis of public policy directed towards problems of pollution, natural resources, and agriculture. 6 credits cr., SS, Fall,Winter,Spring— D. Gibbons, N. Grawe, M. Hemesath, M. Kanazawa, J. Wahl
ECON 112. Breakfast With the Times Using the New York Times as the text, this course will provide a forum to discuss the current news, particularly economic and international. Emphasis will be on analyzing events and their implications for the United States. Students will be challenged to examine the assumptions they make and to think critically while honing rhetorical skills. Prerequisite: Economics 110. 2 credits cr., S/CR/NC, ND, Fall,Winter,Spring—M. Paas
ECON 222. Cambridge Program: The Industrial Revolution in Britain This course studies the development of the British economy during the Industrial Revolution, with special attention paid to the role of agriculture, foreign trade, capital accumulation, population growth, and technological innovation. The week-long trip to sites of the Industrial Revolution and excursions to other locations of historical significance are important aspects of this course. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Summer—S. Bierman
ECON 223. Cambridge Program: Seminar: Great Economists of Cambridge This seminar traces the development of economic thought at Cambridge University from Alfred Marshall, the founder of modern Microeconomics; to Arthur Pigou, the founder of modern public sector economics; to John Maynard Keynes, the revolutionary macroeconomist; to the post-Keynesian economists at Cambridge who have profoundly influenced modern economic thinking. 4 credits cr., S/CR/NC, SS, Summer—S. Bierman
ECON 224. Cambridge Program: Economics of Multinational Corporations This course studies the economic issues surrounding multinational corporations, including why firms go abroad, the impact of direct foreign investment on the recipient, and the changing role for foreign investment over time. The course will include a number of field trips to multinational corporations in Britain. 6 credits, SS, Summer 2001 — Not offered in 2001-2002.
ECON 231. Soviet and Post-Soviet Economics This course will focus on the economics of Russia and other republics from the beginning of the Soviet period until the present. The origins of the planned system, including collectivization, will be discussed. The economic performance of the Soviet economy will be examined with an eye toward understanding the forces that lead to perestroika. The course will conclude with a discussion of economic reform and the challenges facing Russia as it makes the transition to a market based economy. 6 credits cr., SS, Not offered in 2001-2002.
ECON 232. American Economic History Cross-listed with AMST 262. An introduction to the growth of the American economy from colonial times to the present with emphasis on the nineteenth century. Topics include technical change, the choice of technique, income distribution, demographic transition, labor supply and resource allocation through factor markets with institutional constraints. Debates in economic history such as the economic viability of antebellum slavery, the role of railroads in the growth process and the economic impact of the New Deal will be evaluated with evidence from the new economic history. May be counted toward the History major. 6 credits cr., SS, Not offered in 2001-2002.
ECON 240. Economics of Developing Countries Cross-listed with LTAM 240. A study of the modernization process in less developed countries and of various approaches to it. The nature and determinants of development and underdevelopment are emphasized and contemporary domestic and international problems and policies are evaluated, from economic, political, social and human perspectives. Topics discussed include: desirability and disadvantages of development; population patterns and pressures; labor force quality; role of women; entrepreneurship; the informal sector; agricultural productivity and land reform; savings, taxes, capital formation and the dual economy; foreign aid, trade, investment, and multinationals; and case studies of countries and of alternative policies. 6 credits cr., SS,RAD, Winter—D. Gibbons
ECON 245. Economics of Inequality As economies develop beyond the point of meeting basic needs, more emphasis is placed on the distribution of resources. This course surveys different elements and measures of economic inequality. We will look at race and gender discrimination, industry wage differentials, educational inequality, and changes in inequality within these groups. Since the effects of inequality can be mitigated by movements between economic classes, we will also study mobility both within and across generations. 6 credits cr., SS, Spring—N. Grawe
ECON 250. History of Economic Ideas A survey of the evolution of economic thought from the seventeenth century to the present, with emphasis on the intellectual and historical background which influenced economists. 6 credits cr., SS, Winter—M. Paas
ECON 260. Managerial Economics I Managerial Economics provides students with the opportunity to apply knowledge of micro- and macroeconomic principles to decision-making in the real world. This course will emphasize accounting and the accounting systems which provide data to decision-makers, giving particular attention to the relevance of accounting data to economic decision-making. An introduction to spreadsheet program use will be an integral part of the course, which will conclude with an introduction to some basic decision-making techniques (e.g. break-even analysis, naive forecasting models) which use accounting data. 6 credits cr., SS, Winter—S. Strand
ECON 261. Managerial Economics II This course continues the student's introduction to practical decision-making techniques used by economists and managers. Building on material presented in Economics 260, topics surveyed in this course will include demand and cost curve analysis as well as the implications of alternative pricing and production choices. Among the analytical techniques to which the student will be introduced are: linear programming, econometrics, calculus, and game theory. Prerequisite: Economics 260. 6 credits cr., SS, Not offered in 2001-2002.
ECON 262. The Economics of Sports In recent years, the sports business in the United States has grown into a multibillion-dollar industry. Understanding the sports business from an economic viewpoint is the subject of this course. Topics will include player compensation, revenue-sharing, salary caps, free agency, tournaments, salary discrimination, professional franchise valuation, league competitiveness, college athletics, and the economics of sports stadiums and arenas. 6 credits cr., SS, Fall—M. Kanazawa
ECON 265. Game Theory and Economic Applications The opportunity for strategic behavior exists not only in games like monopoly, poker, or tennis; negotiations of wage contracts, work habits of individuals in study groups, and output decisions of cartel members are also examples. Game theory is the study of purposeful behavior in strategic circumstances. In the last twenty years economic analysis has been transformed by developments in and applications of game theory. Many of the results are counter-intuitive or anomalous. In this class modern game theoretic tools will be derived and applied to a wide variety of economic issues. These include the effect of patents on product variety, cartel behavior, efficient tort law, corporate take-overs, and the credibility of the Fed. Prerequisite: Mathematics 111. 6 credits cr., SS, Not offered in 2001-2002.
ECON 270. Economics of the Public Sector A theoretical and empirical examination of the government's role in the U.S. economy. Emphasis will be put on policy analysis using both the criteria of efficiency and equity. Topics treated include rationales for government intervention; analysis of alternative public expenditure programs from a partial and/or general equilibrium framework; the incidence of various types of taxes; models of collective choice; cost-benefit analysis; intergovernmental fiscal relations. 6 credits cr., SS, Winter—N. Grawe
ECON 271. Economics of Natural Resources and the Environment Cross-listed with ENTS 271. This course focuses on environmental economics, energy economics, and on the relationship between them. Economic incentives for pollution abatement, the industrial organization of energy production, optimal depletion rates of energy sources, and the environmental and economic consequences of alternate energy sources will be analyzed. Prerequisite: Economics 111. 6 credits cr., SS, Not offered in 2001-2002.
ECON 272. Organizations & Decisionmaking Why do we see the existing population of firms in the modern U.S. and multinational economy? Why do some firms vertically integrate, others sign long-term contracts, and yet others engage in arm's-length transactions? In this course we begin with an overview of the development of the modern firm since the 19th century and examine how economists have extended the neoclassical model to better describe the size and structure of the modern firm. The course then turns to a survey of models developed by economists and sociologists in reaction to the restrictions of the traditional economic theory of the firm, including the role of organizational culture, decision-making characterized by bounded rationality, and the importance of social structures and context to the organization of firms. 6 cr., SS, Spring—T. Feldman
ECON 273. Water and Western Economic Development Cross-listed with ENTS 273. This course will examine a number of important aspects of water as a legal/political/economic factor in the development of the western United States. The topics will include western water law, the evolution of water supply institutions, state and local water planning, the role of the federal government, and a number of current water problems, including surface and groundwater pollution, impediments to market transfers of water, and state/regional/international conflicts over water. Prerequisite: Economics 111. 6 credits cr., SS, Spring—M. Kanazawa
ECON 274. Labor Economics What do you want from work? What do employers want from you? The hurly-burly of the international marketplace creates problems—and opportunities—for employers and employees. This course uses economic theory to analyze the market for labor and focuses on such diverse issues as leveraged buyouts, fringe benefits, salaries of athletes, financing of education, unions and collective bargaining, unemployment insurance, workers' compensation, discrimination and harassment, minimum wage policies, welfare, and income distribution. 6 credits cr., SS, Fall—N. Grawe
ECON 275. Law and Economics Legal rules and institutions influence people's behavior. By setting acceptable levels of pollution, structuring guidelines for contract negotiations, deciding who should pay for the costs of an accident, and determining punishment for crimes, courts, and legislatures create incentives. How do economic considerations factor into legal rules, and how do laws affect economic output and distribution? In this class, we use court cases, experiments, and current legal controversies to explore such issues. 6 credits cr., SS, Winter—J. Wahl
ECON 277. Public Interest in Private Economic Behavior An introduction to the public regulation of private economic activity. Economic arguments for regulation and antitrust legislation based on natural monopoly, information failure, and externality considerations will be discussed. Alternative regulatory policies, such as licensing, rate of return regulation, standards, and taxes, will be analyzed in terms of their efficacy in correcting market failure and their impact on income distribution. 6 credits cr., SS, Not offered in 2001-2002.
ECON 278. Industrial Organization and Pricing Policy The firm's marketing and pricing problems, its conduct, and the resulting economic performance, given the nature of the demand for its product(s), its buying markets, the nature of its unit costs, and the structure of its selling market(s). 6 credits cr., SS, Not offered in 2001-2002.
ECON 279. Urban Economics This course analyzes the growth and development of metropolitan areas with emphasis on the spatial distribution of population and employment within those areas. Urban problems and associated policy issues concerning transportation, congestion, pollution, poverty, race, housing, governmental structure and the fiscal crisis of local governments are examined. 6 credits cr., SS, Spring—D. Gibbons
ECON 280. International Trade A study of international trade theories and their policy implications. Classical and neo-classical trade models, the gains from trade, the terms of trade and the distribution of income, world trade patterns, international factor movements, tariffs, and the impact of commercial policy on developing and developed countries will be analyzed. 6 credits cr., SS, Fall—M. Hemesath
ECON 281. International Finance This course studies theories of the multi-faceted interaction between the balance of international payments and foreign exchange market and the general levels of domestic prices, employment and economic activity. Topics will include the balance of payments, foreign exchange markets, adjustment mechanisms in international payments, macroeconomic policies for internal and external balance, and international monetary systems. 6 credits cr., SS, Winter—G. Lamson
ECON 283. Contemporary Economics of East Asia The course's foci are growth economics and the search for explanations for the unusually rapid growth of the economies of east Asia: China, Korea, Taiwan, Hong Kong, Singapore; Thailand, Malaysia, Indonesia, Vietnam and the Philippines, with an emphasis on the region's economic and cultural diversity. Topics include the special roles of globalization and agricultural transformation in the region, its unusual capacity for human and physical capital formation, the wide diversity of government interventions to promote development, the role of finance as engine of development and source of instability and the cultural and political bases for these growth factors. 6 credits cr., SS, Spring—G. Lamson
ECON 330. Intermediate Price Theory An analysis of the forces determining relative prices within the framework of production and distribution. Prerequisite: Mathematics 111 or its equivalent. This class is normally taken by juniors. Sophomores considering enrolling should speak to the instructor. 6 credits cr., SS, Fall,Winter—J. Wahl
ECON 331. Intermediate Macro Theory Analysis of the forces determining the general level of output, employment, and prices with special emphasis on the role of money and on interest rate determination. Prerequisite: Economics 330 or consent of the instructor. This class is normally taken by juniors. Sophomores considering enrolling should speak to the instructor. 6 credits cr., SS, Winter,Spring—G. Lamson
ECON 332. Econometrics An introduction to the quantitative methods used by economists to test economic theory and its applications empirically. Several multivariate statistical methods will be developed, including multiple regression. Students will analyze and test both micro and macro economic models, often using the department's computer facilities. Prerequisite: Mathematics 111 and 215 or 315. This class is normally taken by juniors. Sophomores considering enrolling should speak to the instructor. 6 credits cr., SS, Fall,Spring—M. Kanazawa
ECON 340. Topics in U.S. Economic History Cross-listed with AMST 341. Cliometrics, or the "new economic history," has become an important field of economics over the last three decades. By applying standard economic theories and tools to historical data, cliometricians have made intriguing discoveries about economic growth, population trends, labor market changes, slavery and the South, immigration and mobility, money and banking policies, technological innovations, and the effects of the legal system. This course focuses on the United States, utilizing the models and hypotheses developed in core economics courses to analyze a series of historical events. Prerequisites: Economics 330, 331, and 332 (may be taken concurrently). 6 credits cr., SS, Not offered in 2001-2002.
ECON 395. Economic Transitions in Europe Any economic analysis of Europe over time must address the nature of economic transitions as individual cities, bishoprics, and principalities merged into nation states with various degrees of economic success. European economic transitions can be characterized by economic change in both time and space. This seminar will allow students to use economic analysis in a comparative study of periods and/or places in discovering economic factors important to the success or failure of transitions, and transitional policies involving or encouraging economic integration, to Europe. Prerequisites: Economics 330, 331, 332 (may be taken concurrently) 6 credits cr., SS, Fall—M. Paas, S. Strand
ECON 395. Advanced Topics in Labor Economics Labor economics is the study of ork and pay. It encompasses a wide variety of topics, including the nature of the labor contract, human capital investment, fringe benefits, search and hiring, turnover, working conditions, discrimination, union activities, income and wealth distribution, and government policies. The seminar will consider labor market activities within the larger context of general household decision-making as these decisions interact with other household decisions such as family formation, the timing of marriage and childbirth, and the allocation of unpaid household work among family members. Prerequisites: Economics 330, 331, and 332 (may be taken concurrently). 6 credits cr., SS, Spring—J. Wahl
ECON 400. Integrative Exercise 6 credits cr., S/NC, ND, Fall,Winter,Spring—Staff