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COURSES Course
Lists Course Lists Fall 2006
Spring 2007
Course
Descriptions Economics 317 This course covers industrial organization, from traditional ideas to ideas on the frontier of economic research. The traditional literature addresses the industrial structure of the US economy and antitrust policy, monopolies, and anti-competitive behavior. More recent work examines the structure of firms, markets and organizations. Other topics include vertical integration and coordination, product differentiation and patents, bilateral bargaining and the market for lemons, auction and bidding, and theories of advertising. The theory is examined in the context of real world situations, both current and historical. Prerequisite: ECONOMICS 201. Development from the Ground Up: Community-Based Development Economics 265; Asian Studies; Environmental Studies; Global & Int’l Studies; Human Rights; Society, Technology & Society This course critically examines the concept and practice of community-based (or community-led) development as an alternative to the widely studied top-down theories and policies of development. We begin by asking whether the end goals of “development” are universal outcomes such as income, or outcomes that vary with the values of individuals or communities. Conceptualizations of well-being in Buddhist and Gandhian thinking will be considered to highlight the cross-cultural differences in what constitutes a “good life”. We will develop a broader definition of development as economic, social and political empowerment that allows an individual or a community to achieve whatever it is that they value and desire. We will then examine several grassroots development movements that have focused on empowerment. Two examples are the micro-credit movement that began with the Grameen Bank of Bangladesh and the Sarvodaya Shramadana Movement of Sri Lanka. We will also attempt to relate the concept of community-based development to the neoclassical paradigm of economics. We will critically examine the impact of market expansion and the consequent erosion of informal exchange relations from the perspective of community empowerment. Several innovative ideas such as fair trade, eco-tourism and micro-credit that attempt to combine community empowerment with market expansion will be studied. Throughout the course, the relationship of community-based development with ecological sustainability and political decentralization will be highlighted. Prerequisites: Economics 101 or permission of instructor. Econometrics Economics 329 Econometrics is the artful blending of economic theory with statistics. Economic theory helps us to develop behavioral hypotheses, while statistics help us to test these hypotheses. For example, consumer theory tells us that there is an inverse relationship between price and quantity demanded; we use econometrics to see if consumers actually behave in this way. This course covers the proper use of statistical tools, such as linear regression, multivariate regression and hypothesis testing. Students will have an opportunity to apply these tools to analyze a variety of economic issues. Prerequisites: ECONOMICS 229 and either ECONOMICS 201 or ECONOMICS 202. Economic Dimensions of Public Issues in the United States Economics 110; American Studies, Social Policy How do economists apply their theories to real-world policy problems? This course introduces students to economic modeling and methods by investigating some of today's most difficult public issues. Topics covered will depend somewhat on student interests; recent ones were energy markets and regulation, the impact of current tax policies, improving the quality and quantity of education, various approaches to environmental regulation, welfare reform, Social Security and demographic changes, and health care market failures. After a general review of each topic we will learn the relevant economic theory; students who are interested in each topic will then have the opportunity to do in-depth research and present their analysis and conclusions. We will draw information from a variety of sources including scholarly publications and "think tanks," popular media coverage, U.S. Government publications and statistics, and materials from advocacy groups on different sides of the issue. (Note the word "domestic" in the course title. There is a companion course, Economics 115, "Economic Dimensions of World Issues," concerned primarily with issues that cross international borders. So we will confine ourselves whenever possible to domestic considerations. Although we focus on U.S. issues and institutions, these analytical methods can be applied to domestic policies in many different countries.) Economic Dimensions of World Issues Economics 115; Global and International Studies, Human Rights, Science, Technology & Society, Social Policy This introductory course uses simple economic concepts to examine global and international issues of current and enduring interest. (Public issues in the U.S. are addressed in the fall semester companion course ECONOMICS 110). The aim of this course is to help students with little or no economics background to understand the economic dimensions of important social and political issues of the world. Topics will be drawn from a pool that includes the WTO and trade liberalization; European integration; regionalism (NAFTA, FTAA etc.); global warming, deforestation and other environmental issues; the role of multinational corporations and multilateral agencies such as the World Bank and IMF; the AIDS crisis in Africa; poverty and hunger; inequality within and between nations; the debt and currency crises of Latin America and East Asia; the recent economic stagnation of Japan; the transition from planning to markets in Eastern Europe and former Soviet Republics. The discussion of each topic will begin with a general review using materials from the popular media. This will be followed by a more detailed economic analysis using micro and macro economic concepts. Relevant theoretical models and principles will be introduced during the discussion. In addition to short essays, class presentations and team projects, students will be asked to maintain a weekly journal of relevant current events that are covered in the international media. Economic History of Central Asia Economics 219: Asian Studies, Global & Int’l Studies, History, Russian and Eurasian Studies Central Asia has made headlines due to its vast reserves of oil and natural gas and the geographic proximity to Russia, China and Afghanistan. Yet, little is known about the region, which includes Mongolia and five countries of the former Soviet Union (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan). This course will explore the economic history of Central Asia from early times until today. Several major themes will be explored. The economic development of Central Asia was closely linked to the fortunes of the Silk Road, which passed through the region. We will study the impact that being the main segment of the Silk Road had on the lifestyle and economic wellbeing of the Central Asian population. We will also analyze the lasting influence that the rise of Genghis Khan in 13th century had on the region. As the heart of his empire, Central Asia experienced dramatic changes as free trade and commerce prospered, a common paper currency system was introduced, and physical infrastructure developed. We will then evaluate the impact that the discovery of oil and natural gas in 19th century has had on the region, as it became the battle zone between Russia and the Great Britain in 19th century and Russia and the United States today. Finally, we will look at the challenges that Central Asia faces today as it attempts to leave behind the Soviet legacy and move forward. Economic History of Modern Asia Economics 218; Asian Studies, Global and International Studies This course is an analytical examination of important historical events and circumstances that have shaped the economic landscape of Asia in the Twentieth century. Topics include colonialism and economic dependency, impact of the World Wars and post-independence nation-building. The evolution of economic development strategies such as import-substituting industrialization, national planning, export-led growth, regional integration and globalization is studied. The impact of history, geography and institutions on economic activity is emphasized. Prerequisite: Economics 101 or 102, or permission of the instructor. Economic History of the World Economics 217 This course surveys world economic history from Paleolithic times to the present. Major themes include the role of social institutions in promoting or inhibiting economic development; competition for territory and natural resources; population growth and decline; the disparity of wealth among nations; class structure and class struggles. Topics addressed include feudal systems, colonial systems, industrialization, urbanization, globalization, transition economies, economic imperialism, and environmental impacts of economic activity. Prerequisite: One economics course. Economic Justice Economics 351; Philosophy What is a just way of distributing the goods and resources of society? This is obviously an old question, an extremely difficult and divisive question, and yet an important and unavoidable question for thoughtful citizens. Furthermore, any adequate discussion of justice in distribution must also take into account the effects of such distribution. How do various ideals of justice interact with economic realities? Are there important distinctions to be made among the concepts of justice, fairness, equity, and equality? Some writers argue for an ideal of equal opportunity, while others prefer the notion of equality of outcomes. We will focus on these questions as applied to the United States. We will discuss not merely issues of values, for example, various ideas that have been proposed as to what is a just system of taxation, but also matters of historical/political fact: What is the current distribution of wealth in this country? What has it been in the past? How did we come to have the tax (and subsidy) system that we have? While some have held that all taxation is theft, others have taken the opposite view—that a person’s pre-tax income has no special ethical status because individual incomes depend on the actions of government and society. In short, we will be considering interrelated issues of fact and of value, of ideals and the possible, of philosophy and of economics and of history. Authors studied include John Stuart Mill, John Rawls, Richard Musgrave, Robert Nozick and Amartya Sen. Prerequisite: At least one related course in philosophy, economics, or a related area. Permission of instructor required Economic Transition from Socialism to a Market-Based System: Past, Present and Future Challenges Economics 214; Global & Int’l Studies, Human Rights, Russian and Eurasian Studies, Political Studies This course explores one of the major events in the economic history of the 20th century: the collapse of the socialist system in the countries of the former Soviet Union, and Central and Eastern Europe, and their transition to market – based economies. We will start the course by investigating the causes of the collapse of the socialist system. We will then identify similarities and differences in the economic environments of the countries in this seemingly homogenous group. Important objectives of this course are to analyze economic challenges associated with the transition process and to investigate policy tools that these countries have used in at attempt to address these challenges. To achieve these objectives, we will study a range of topics, which include privatization, price liberalization, inflation, unemployment, changes in the composition of output, foreign direct investment (FDI), national debt and budget deficits, informal economy, and the fight against corruption, among other topics. An important emphasis will be placed on the impact of the economic transformation on social indicators such as income distribution, poverty, education, and health. We will conclude the class by identifying the future challenges that the transition countries face. Prerequisite: One Economics course, or permission of the instructor. Economics of Developing Countries Economics 221; Africana Studies, Latin American and Iberian Studies, Global and International Studies, Human Rights This course explores the economic conditions and problems faced by the majority of the world’s population that live in the developing countries of Asia, Africa, Latin America and the Caribbean. The concept of economic development is defined and related to ideas such as economic growth, sustainable development and human development. Economic theories of development are introduced, and policies designed to promote development at the local, national and international levels are evaluated. Considerable attention is paid to understanding how household decisions in rural agricultural societies are shaped by the institutional and policy environments. Topics include the economic consequences of colonialism and economic dependence; poverty and income distribution; investments in physical and human capital; economic aspects of household choices such as schooling, and fertility; rural-urban transformation; the effects of trade, industrial and agricultural policies; the role of foreign capital flows; political economy aspects of development policy; population growth and the environment; gender and development. Students will be expected to carry out a case study of the development experiences of a country of their choice. Prerequisites: Economics 101 and 102. Economics of Marriage, Family and Other Things in Life Economics 224; Gender and Sexuality Studies In this course, we extend the basic economic model of decision making to study some of the more interesting choices one makes in life. The main topics we will focus on are dating and mating, childbearing, household behavior, the allocation of time, marital dissolution, religion, health, death, and intergenerational relations. The section on dating and mating mainly explores the question of “why do we marry who we marry?” using the theory of assortive mating. The issues of prostitution and the recent decline of marriage rates are also discussed. The topic of childbearing covers the demand for children and the fertility trends of the U.S. The effects of sex education and the socioeconomic consequences of teen childbearing may also be examined. Household behavior deals with division of labor in households as well as altruism in the family. For the section on marital dissolution, we read articles discussing the importance of financial considerations in divorce decisions and the effects of divorce laws on suicide, domestic violence and spousal murder. A formal economic model of church and sect will be introduced when we talk about the economics of religion. The section on health addresses the issue of substance addiction and its relation to labor market success. Our discussion of the topic of death examines the connection between life expectancy and economic behavior in addition to the rise in youth suicide. Finally, the focal point of intergenerational relations is on bequest behavior and its relation to the U.S. distribution of wealth. Prerequisite: ECONOMICS 101 or permission of instructor. Economics of Sports Economics 285 Forget any notion that a sports economics course is justified by the importance of the industry itself. The $14 billion spent on spectator sports in the U.S. is only slightly more than spending on funeral and burial expenses, but not quite as much as is spent on flowers, seeds and potted plants. Why a whole course on this relatively tiny industry? The intense glare of public attention makes sports an ideal specimen for economic analysis. Economics is all about the choices made by individuals, firms and governments to cope with scarce resources. In sports, the behaviors of consumers, athletes, teams, leagues, cities and states are public knowledge, and in this context we can see whether those behaviors follow patterns predicted by economic theory. A section on industrial organization looks at competition within and between leagues, as well as the impact of monopolies, cartels, and other forms of cooperation. Public sector issues include the relationship between cities and their teams, team relocation, and the costs and benefits of sports franchises. Labor economics can help illuminate questions such as how player salaries are determined, the relationship between athlete compensation and performance, the impact of labor unions and collective bargaining, and the peculiar case of amateur and college sports. The idea that economics can help us understand sports is now a cliche. In this course, in the spirit of the liberal arts, we use sports to help us understand economics. Prerequisite: Economics 101. Economics of the Public Sector Economics 237; American Studies; Environmental Studies, Social Policy This course introduces the two branches of traditional public finance, corresponding to the two sides of the government budget–revenue and spending. On the spending side, we survey the economic rationales for the existence of government and for its intervention in the economy, as well as the economic consequences of government expenditures. On the revenue side, we examine the problem of efficient pricing of public sector output; the consequences of alternative tax structures for the distribution of wealth and the efficiency of resource allocation; and approaches to the economics of collective action. We also examine alternative models of the demand for and the supply of public goods and government service. Prerequisite: ECONOMICS 101. Environmental Economics Economics 242; Environmental Studies An examination of the interrelationships between economic and ecological systems, including the materials balance; the economic role of ecosystem services; the economic value of extractive and in situ uses of the environment as a source of productive inputs and a repository for wastes; and market and nonmarket allocations of natural resources among alternative uses. The standard neoclassical analysis of pollution as a consequence of externality and market failure is developed, general conditions for efficient resource use and waste disposal are identified, and rationales for public management of environmental resources are examined. Conventional policy solutions are evaluated, with a focus on U.S. environmental policy. Orthodox analysis of environmental problems is contrasted with alternative interpretations, including those of ecological economics, steady-state economics, and geoclassical economics. Of special interest are questions of land tenure and entitlement, that is, of individual and collective rights to nature. Prerequisite: Economics 101. Experimental Microeconomics Economics 101E; Environmental Studies Traditionally, economics has been regarded as a non-experimental science, where researchers have to rely on direct observations of the real world to verify their theories. That view, however, has changed in the last twenty years as many researchers begin to test economic theories in laboratory settings. In this course, we will follow this relatively new methodology in economics and use in-class experiments to study economic concepts. Each week, we devote one class meeting to conducting an experiment and the other to understand the underlying principles of the experiment and how those principles can be applied to analyze real-world issues. Topics to be addressed include minimum wage law, legality of drug use, farm subsidies in the U.S., the protection of intellectual property and pricing of AIDS drugs in developing countries, tradeoffs between efficiency and equity associated with taxation, the use of pollution permits in combating environmental degradation, international trade, and labor market discrimination. This course can be used to fulfill the requirement of Economics 101: Introduction to Microeconomics for students who intend to moderate into economics. Feminist Economics Economics 254; American Studies; Gender Studies This course reexamines economics by looking at traditional theories through a feminist lens. Emerging feminist approaches challenge the currently used framework of economic analysis (at both the micro and macro levels) for omitting a crucial analytical category, that of gender. In introducing this centrally important category, feminist economics seeks to correct the mainstream vision of how contemporary societies organize the activities of production and distribution. From a scientific point of view, a gender-based schema makes the complexity of economic interactions among institutions and people more transparent, and is thus better suited to address issues of public policy and ultimately societal transformation. Topics that will be covered include: feminist critiques of economic theories–"en-gendering" the economic question per se; the importance of re-conceptualizing the economy as a three sector model–household sector, market sector and government sector; household production versus market oriented production–a gendered system; social division of labor by gender–structures of gender occupation and segregation; contemporary labor market issues and policies–wage gap, comparable worth, discrimination and affirmative action; economic growth, poverty trends and government policy–gendered impact; and "efficient" versus "equitable" growth–how do we evaluate economic prosperity? Prerequisite: ECONOMICS 101 or 102 or permission of instructor. Field Studies in Community Based Development Economics 266; Asian Studies; Environmental Studies; Global & Int’l Studies; Human Rights; Society, Technology & Society 2 credits In this course, students will spend four weeks in the summer in Sri Lanka studying economic development from the perspective of rural communities. The 2006 course will be based in three locations: a semi arid rice-farming region in the south central part of the island, the buffer zone villages of the Sinharaja rainforest and the Southern coastal region that is rebuilding after the tsunami of 2004. Through observation, participation and interaction with actors in development movements at the village level, students will gain a first-hand knowledge of the economic problems faced by rural communities and the economic, political and social implications of the solutions that have been proposed to solve them. This course is the field component of Economics 265: Development from the Ground Up: Community-Based Development. During the field trip, each student will be expected to focus on a particular theme. In 2006, the themes are, 1) micro-finance and self-employment as tools for poverty alleviation, 2) sustainable economic development in fragile ecosystems (e.g. ecotourism and alternative farming practices in rainforest buffer zones and elephant habitats), 3) economic impact of political decentralization and empowerment at the village level (e.g. cooperatives, local governments, non-governmental organizations etc.), 4) the comparative study of international, national and local actors in development from the perspective of a village, and 5) Non-Western models of development (e.g. Sarvodaya and other Buddhist and Gandhian development movements). Upon their return in the fall, students will write a research paper on their chosen topic combining field research and observations with their theoretical knowledge of economics and development studies. The class will meet once a week to shape the informal observations made during the trip in to concrete hypothesis and research questions. Student’s research projects will then be collectively discussed. At the end of the fall semester, the students will make public presentations based on their field trip and subsequent research. Prerequisite: ECONOMICS 265. Students who have taken Economics 221, Economics 218 or Economics 115 may be enrolled with the permission of the instructor. Foundations of Finance and Investments Economics 105 This course explores the foundations of the pricing of financial instruments and the structure and organization of financial markets. Methods will be developed to nalyze and measure financial performance, price stocks and bonds, evaluate portfolios and understand financial derivatives as these relate to financial data. Additional topics will include: the investment decision-making process; trading practices; risk assessment and diversification. This course involves a substantial amount of statistical analysis and calculation, but no prior knowledge of statistics is required. Game Theory: Understanding Strategic Interaction Economics 270; Environmental Studies, Political Studies, Mathematics Game theory is about situations of strategic interaction, where your best strategy is dependent on the strategies adopted by other players. By the same logic, the best strategy of another player depends on the strategy adopted by you. By transitivity, your best strategy depends on the strategy adopted by you (and others). This interdependence of action leads to circular chains of reasoning, which can be “cut” by using game-theoretic concepts such as dominance, Nash equilibria, backwards induction, subgame perfect equilibria, and perfect Bayesian equilibria. Throughout the course these concepts will be conveyed using examples from several fields including economics, politics, environmental studies, business, biology, philosophy and from real-life. For example, we will analyze strategic behavior using games such as tennis and poker, wars of attrition such as the Palestinian-Israeli conflict and the Presidential election campaign, bidding in auctions like eBay, fish schooling behavior and job market signaling. Calculus will be used about 5 or 6 times during the semester, but a good grasp of algebra and proficiency with (sometimes long) chains of logic will suffice rest of the time. Prerequisites: A good grasp of pre-calculus algebra, a basic familiarity with calculus, and the instructor’s consent. Health Economics Economics 386; Social Policy Why have health care costs increased so quickly? How does a consumer with chest pain differ from a consumer in the market for a non-medical service? How are those consumers similar? What is the proper role for government in health care markets? Do government health care programs work? Where did HMOs come from, and have they made health care worse? Why does the U.S. have such amazing health technology but so many people without access to basic care? Health spending is now 16% -- almost one-sixth -- of all U.S. output, far above the 5.3% level of 1960. The health sector presents several peculiar challenges to basic economic theory: asymmetric information, the influence of insurance on demand, uncertainty and risk, imperfect competition, and extensive government intervention in health markets. This course extends basic microeconomic theory in a topical approach to understanding the unique features of health care markets. We begin with demand and supply for health outputs, and consider various methods for measuring the costs and benefits of health outcomes. Subsequent topics address the information asymmetries in health services and insurance; the market for private health insurance (including managed care); features of physician and other labor markets; reasons for and effects of social insurance programs; and questions surrounding U.S. health care reform, including spiraling costs and incomplete access to care. Prerequisite: Economics 101. Health, Welfare and Social Insurance Economics 280; Social Policy Sixty percent of U.S. federal government spending is on health, welfare, and retirement/disability insurance. What are the economic reasons for and against government intervention in these areas? What are the various programs designed to accomplish, and what behavioral incentives do they actually create? How well do these programs achieve their aims? Medicaid, Medicare, welfare, and Social Security have all undergone sweeping changes in recent years, with more on the horizon. This course examines major social programs from an economist's perspective. We will develop theoretical models of individual behavior and market failure, and apply these models to U.S. policies as well as to other countries. The semester will be structured as three separate modules covering each of the three major topics. Prerequisite: Economics 101. History of Economic Thought I: The Rise and Fall of Classical Political Economy Economics 210 The early history of the yet-young science of economics: Petty, Locke, Hume, and the age of mercantilism; the Physiocrats of 18th century France, inventors of the first circular-flow analysis of the macroeconomy; the revolutionary work of philosopher Adam Smith in 1776; and the century of classical political economy that followed him in the English-speaking world: Thomas Malthus, David Ricardo, John Stuart Mill, and others who studied the virtues and vices of the market system and debated the great questions of the relations of land, labor and capital. At its maturity, the classical school gave rise to two very different attacks on existing politico-economic institutions: in continental Europe, the socialist critique of Karl Marx; and in the United States and England, the Lockean critique of Henry George. This course focuses on the classical period to the late 19th century, when classical political economy gave way to the "marginal revolution," which, applying the mathematical insights of calculus to economic questions, focused more on subjective choice and perhaps less on political issues and institutions. Prerequisite: One economics course. History of Economic Thought II: Neoclassical and Keynesian Economics Economics 310 An examination of the development of economic thought through the past century, beginning with Alfred Marshall, originator of the graphical analysis of demand and supply. In-depth coverage is given to the emergence of the now dominant neoclassical (anticlassical?) school of economic thought and the Keynesian revolution in macroeconomic theory and policy after 1936. Efforts to synthesize neoclassical and Keynesian views are examined; the views of dissenting schools of thought are briefly reviewed. Finally, some hard questions are considered: How have the central issues of economic science been defined and redefined across the centuries? Is economics today on the right path–have its practitioners taken the right turns or the wrong ones? Which analytical problems have been resolved, and which still await solution? Prerequisite: one economics course; 210 is recommended but not required. Intermediate Macroeconomics Economics 202; Global and International Studies, Social Policy This course is the continuation of the introductory macroeconomics course. In it, students will get acquainted with main models that macroeconomists use to analyze the way economies behave. The course starts by looking at the models that explain long run economic growth. We then focus our attention on investigating economic theories that explain short run business cycles, the periods of recessions and booms that occur on a regular basis. An important part of the course is to investigate the role of governments in affecting the long run and short run economic prospects of their countries. We apply the acquired theoretical knowledge to a range of current economic issues, including budget deficits and national debt, international trade, and the role of institutions. Prerequisite: Economics 102. Intermediate Microeconomics Economics 201 A further development of principles and analytical methods begun in Intro to Microeconomics: demand, supply, and the workings of the price system. The positive and normative characteristics of alternative market structures - perfect competition, monopolistic competition, oligopoly, pure monopoly, and in resource markets, monopsony - are studies in depth. Market forces are examined in the context of social and political institutions that shape, and are shaped by, market outcomes. The alleged "trade-off" between equity and efficiency is debated in the context of a variety of applications. Prerequisite: Economics 101 International Economics Economics 213; Global and International Studies. Topics covered in this course include analysis of international trade and financial relationships; recent problems and developments in world commercial, monetary, and financial policy; and the economic aspects of international cooperation. Prerequisites: Economics 101, 102. Introduction to Macroeconomics Economics 102; Global and International Studies This course begins with the examination of the aggregate behavior of modern economies: the factors leading to economic growth, explanations of booms and recessions, unemployment, interest rates, inflation, budget deficits or surpluses, and international trade. We will also analyze the government’s ability (or inability) to use monetary and fiscal policies to achieve economic goals such as full employment and price stability. Throughout the course, we will debate whether government should use monetary and fiscal policy tools to try to ‘fine tune’ the economy and what the likely effects of such government involvement are. We will analyze these issues using current domestic and international examples. Economics 101 and 102 may be taken in either order. Introduction to Microeconomics Economics 101; Environmental Studies This course covers the essential ideas of economic analysis. Students will learn how economists explain human behavior as we seek to satisfy our needs and wants. The first part of the course develops models of consumer and firm behavior, including demand and supply, in the context of an idealized competitive market. From there we analyze several ways in which the real world deviates from this model, including monopoly and other forms of imperfect competition, information problems, minimum wages and other price controls, taxes, and government regulation. Along the way we will explore public policy problems such as pricing the environment, winners and losers from international trade, health care costs and insurance, and the high price of textbooks. Economics 101 and 102 may be taken in either order. Labor Economics Economics 235; American Studies, Gender Studies, Social Policy What makes labor markets different? How do economists model and study how people’s lives are affected by the unique characteristics of these markets? This course examines some of the key theoretical models of labor markets and considers how well these models hold up to real-world empirical scrutiny. Because this is an applied course, we will also consider what our theoretical and empirical explorations imply for public policy. Topics covered include labor supply and demand, minimum wage laws, human capital, family and life-cycle decision-making, efficiency wage theory, compensating wage differentials, worker mobility and migration, unions, discrimination, and theories of unemployment. The course is not designed to be comprehensive, however, and may vary depending on the interests of each semester’s students. Prerequisite: Economics 101. Law and Economics Economics 252; Human Rights The economic approach focuses on the choices people make in the context of given opportunities and constraints, and on how they respond to changes in incentives. This course applies economic principles to study the incentive effects that legal sanctions have on human behavior. In addition to making scientific predictions with regard to individual responses, we evaluate the welfare implications of the law on the grounds of efficiency and equity. Four areas of law are analyzed: property law, contracts, torts, and the concept of crime and punishment. Time permitting, we also address legal issues associated with racial discrimination, sex and marriage, surrogate motherhood, or prostitution. Algebra and graphs are used intensively as analytical tools. Prerequisite: Economics 101. Mathematical Economics Economics 205 An introduction to the use of elementary calculus and linear algebra in economic theory, the course provides the basic mathematical skills necessary to approach the professional economics literature. Emphasis is on formulating economic problems and building economic models in mathematical language. Applications are based on simple micro- and macroeconomic models. Prerequisites: Economics 101 or 102; calculus. Money and Banking Economics 200; Global and International Studies An examination of the role of money and financial intermediaries in determining aggregate economic activity. Interactions of savers, investors, and regulatory authorities in domestic and international capital markets are analyzed, and the linkage between the financial system and the real economy is traced. The functions of central banks, commercial banks, securities dealers, investment banks, and other intermediaries are covered in detail. The debate over the goals, tools, indicators, and effectiveness of monetary policy is considered in the light of current national and international economic problems. Population Economics and Demography Economics 263; Environmental Studies, Social Policy Theories and measures of population as they pertain to economic and social spheres are developed and evaluated. The history of theories of population growth and population control and their consequences is traced from Malthus and Marx to Boserup, Simon, and Easterlin. Particular attention is paid to current population issues–fertility control, famine, ecological consequences of population pressure, and migration. Both domestic and international population policies are treated. Domestic issues involve migration and shifting demographics as evidenced by the latest census; international issues focus mainly on fertility control in developing countries. Prerequisite: Economics 101. Religion and Economics Economics 260; Human Rights, Religion Using an interdisciplinary approach, this course analyzes the relationship between religion and economic development. We start by looking at the impact that religion and religious thinking have had on the formation of economic order in societies. What role has monotheism played in the development of economic ethics (e.g. attitude towards money, economic well-being, the meaning of work)? How have religious views affected the evolution of capitalism? What are the views of different religions on globalization? Next, we look at the role that economic incentives have played in the growth of religions. We analyze how economic factors may have influenced the spread of Christianity in the first-century Rome. We also look at the role they played in the growth of Islam. Other case studies will include the analysis of the impact of the Templar Order of 12th century on the development of financial institutions in Europe; the economic history of Russian Old Believers, a schismatic group of the Russian Orthodox Church; and the role that the lack of economic opportunities in the Middle East may have played in the growth of terrorism. A summer camp in the community of Old Believers in Russia may follow the course. Seminar in Contemporary Developments of Finance Economics 340 The seminar will contrast the academic analysis of financial economics with the coverage it receives in the newspapers and on the nightly newscast. The stories on the news are almost always connected with people, whether we observe them shouting bids in a trading floor or talking on two phones simultaneously. Financial markets are dominated by people behaving in many different ways. Yet traditional finance theories concentrate on efficient markets, predictable prices that are determined by the concepts of present value, rates of return and analysis and pricing of computable risks. Human behavior has neither a place in the theory nor a need to be studied. This prevailing view has recently been challenged by the new paradigm of behavioral finance that considers the many anomalies of "rational" behavior and "efficiency" of markets. The new paradigm concerns itself with economic decision making and investor psychology, and specifically with questions relating to how and why people exhibit a mixture of rational and irrational behavior. The seminar will examine the influence of economic psychology in the decision-making process of various agents as well as in the market's dynamics. Several guest lecturers will also offer their informed views in the development of contemporary finance. Seminar in Geoclassical Economics Economics 330; Environmental Studies This seminar reviews the literature of geoclassical economics from it roots in Locke, Quesnay, Smith, Ricardo and George to the recently published work of Tideman, Gaffney, Vickrey, Stiglitz, and others. The geoclassical tradition studies the role of land tenure and related property institutions in shaping social, political, and economic life. Its interdisciplinary research agenda includes economic applications to environmental issues, urban problems, economic cycles, tax policy, public choice, the economic theory of government, trade, debt and dependency, income distribution, and territorial disputes. Exploring discrepancies between geoclassical and neoclassical postulates, we ask whether geoclassical thought constitutes a consistent body of theory. Each student will present articles or excerpts from the primary literature, compose short critical essays, and write a research paper. Together as a class, we will attempt to characterize the nature and scope of the geoclassical research agenda and to identify a priority list of questions for research. ( Economics 330 satisfies the History of Economic Thought field requirement in Economics.) Prerequisites: Economics 102 and either 101 or 115. Moderated ES students with related background may enroll with permission of instructor. Seminar in National Economic Policy Economics 311; American Studies, Social Policy An exploration and assessment of macroeconomic decision-making in the United States and throughout the world. Public policy decisions are not made solely on the basis of economic theory; indeed, political considerations are often the dominant factors explaining particular actions of the government, the Federal Reserve, and other agencies. The seminar, using an elementary framework of macroeconomic concepts, analyzes national economic events that involve the application of policy to domestic and international problems. Special emphasis is placed on the use of monetary policy, fiscal policy, international trade policy, and exchange rate policy to deal with unemployment, inflation, budget deficits, and instability. Prerequisites: Economics 102 or 202. Social Security and Health Care Economics 120; Social Policy Looming as two significant long-term policy questions in the U.S. are Social Security and health care financing. Today these topics share the stage in a national debate about the role of government in a market economy, and both policy areas have been cited as financial crises. This course is designed to apply dispassionate economic analysis to an often-confusing public debate, to explode the myths, and to highlight the undeniable realities. For Social Security, we investigate the purpose and history of the program, its current functions, and its micro and macro effects on the economy. We then consider Social Security’s financial outlook and to what extent it presents a crisis, and evaluate proposed solutions. Special consideration will be given to President Bush’s reform proposals. For health care, we examine health care markets, insurance, and the arguments for government intervention. We will study how Medicare and Medicaid work, their roles in the escalation of national health care expenditures, and we will evaluate competing proposals to restructure federal health policy. In both Social Security and health care, we will use international comparisons throughout the course to shed light on the U.S. situation. Statistics Economics 229: Environmental Studies The first of a two-course series designed to examine empirical economics, and a prerequisite for Economics 329, Econometrics. Basic concepts of statistics, probability, probability distributions, random variables, correlation, and simple regression are introduced; the techniques of statistical inference hypothesis testing are developed. Numerous examples and computer-based exercises are included. Prerequisite: Economics 101 or 102. The Senior Conference Students writing Senior Projects in Economics are required to attend the Senior Conference, which will meet not more frequently than one evening every two weeks throughout the fall and spring terms year. All core faculty of the Economics Program will participate. Not for credit. Topics in Economic Growth and Development ECONOMICS 325; Global and International Studies This course introduces students to the theoretical modeling of determinants of economic growth and development. It presents a synthesis of recent and older literature on economic growth, income and asset inequality, poverty and undernutrition, population growth, international trade, and the markets for land, labor and credit. The analyzed models will be supplemented with empirical evidence from around the world. Prerequisites: ECONOMICS 201 or permission of the instructor. Topics in International Trade and Finance Economics 323; Global and International Studies, Social Policy An examination of advanced topics in international economics using theory and empirical evidence. Recent theoretical advances in understanding trade under imperfect competition, strategic trade, political economy of trade policy and international policy coordination are discussed. Classical, neoclassical and modern theories are used to analyze important policy issues such as the effect of trade on economic growth and income distribution, international movements of labor and capital, trade between unequal partners, crises in emerging markets, preferential trade agreements and imbalances in agricultural trade. Prerequisites: Economics 101 and 102. Topics in Macroeconomics Economics 302; Global and International Studies, Social Policy This course will examine advanced topics in macroeconomics and critically review contemporary macroeconomic theories and models with regard to their historical development. The foundations of macroeconomic theory will be studied and alternative approaches to economic growth, distribution, increasing returns, and endogenous change will be analyzed. The monetary and financial aspects in macro foundations will be discussed, focusing on the work of Minsky, Tobin, Sargent, Lucas, post-Keynesians, neo-Keynesians, new Keynesians, and Sraffians. Readings will be mainly from primary journal literature. Prerequisite: Economics 102. Topics in Microeconomics Economics 301 An analysis of theories of price determination and allocation of resources by the market; factor prices, income distribution, and poverty; effects of monopoly and imperfect competition; problems of the consumer society, public goods, and social welfare. Prerequisite: Economics 201. Urban and Regional Economics: Location, Location, Location Economics 226; Environmental Studies An introduction to the economic analysis of the spatial distribution of human behavior. Where and why do cities arise? Why do people cluster their homes and workplaces in certain places? What factors determine the market allocation of land among users and the variations in land value from place to place? What determines the size, density, and number of urban areas? What are the causes and consequences of suburbanization and sprawl, so evident in the United States and Canada in recent decades? The spatial structure of cities and of regional systems of cities is analyzed from the perspective of central place theory, a microeconomic theory of location that complements a historical review of patterns of urbanization and sprawl. Contemporary urban problems are also examined from an economic point of view; problems include housing and homelessness, crime, transportation, social services, segregation, inner-city blight. Issues of urban planning and policy are debated. Prerequisite: Economics 101. |
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