199. Introduction to Macroeconomics (for Nonmajors). Via theory, public policy applications, and basic economic reasoning, the course covers current major domestic and international macroeconomic issues in the U.S. economy, including the determination of income and output, inflation, unemployment, and economic growth; money and banking; federal spending, taxation, and deficits; international trade, exchange rates, and the balance of payments. A. Sanderson. Winter.

200. The Elements of Economic Analysis I. PQ: One year of calculus. This course develops the economic theory of consumer choice. This theory characterizes optimal choices for consumers given their incomes, their preferences, and the relative prices of different goods. The course develops tools for analyzing how these optimal choices change when relative prices and consumer incomes change. Finally, the course presents several measures of consumer welfare. Students learn how to evaluate the impact of taxes and subsidies using these measures. If time permits, the course examines the determination of market prices and quantities, given primitive assumptions concerning the supply of goods. X. Chen, N. Stokey. Autumn, Spring.

201. The Elements of Economic Analysis II. PQ: Econ 198, 199, or 200. This course is a continuation of Econ 200. The first part discusses markets with one or a few suppliers. The second part focuses on demand and supply for factors of production and the distribution of income in the economy. The course also includes some elementary general equilibrium theory and welfare economics. Staff. Autumn, Winter.

202. The Elements of Economic Analysis III. PQ: Econ 200. As an introduction to macroeconomic theory and policy, this course covers the determination of aggregate demand (consumption, investment, and the demand for money), aggregate supply, and the interaction between aggregate demand and supply. The course also discusses activist and monetarist views of fiscal and monetary policy. R. Lucas, Staff, Winter; Staff, Spring.

203. The Elements of Economic Analysis IV. PQ: Econ 202 or equivalent. This is a course in money and banking, monetary theories, the determinants of the supply and demand for money, the operation of the banking system, monetary policies, financial markets, and portfolio choice. C. Mulligan, Autumn; Staff, Spring.

210. Econometrics A. PQ: Econ 201, 203, Stat 220, and Math 196 or 250. Econometrics A covers the single and multiple linear regression model, the associated distribution theory and testing procedures; corrections for heteroskedasticity, autocorrelation, and simultaneous equations; and other extensions as time permits. Students also apply the techniques to a variety of data sets using PCs. Staff, Autumn; G. Tsiang, Winter.

211. Econometrics B. PQ: Econ 210. This course covers topics in econometrics, such as generalized least squares, hypothesis testing, errors in variables, prediction, simultaneous equation models, time-series models, and discrete choice models. Staff. Spring.

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221/321. Colonization, Servitude, and Slavery: The Early American Experience. PQ: Econ 200. This course considers economic analysis of the early American labor market, drawing on new research on the economic and social history of the colonies. Topics include the English background and economic stimulus to colonization, economics of the Jamestown experiment, mortality in the early colonies, the economics of white indentured servitude, opportunities for immigrants, the economics of the transatlantic slave trade, the growth of black slavery, and the wealth of the colonies. D. Galenson. Winter.

222/320. Topics in American Economic History. PQ: Econ 200. Economic analysis is applied to important issues in American economic history. Specific topics vary, but typically include the economics of colonization, the transatlantic slave trade, the role of indentured servitude and slavery in the colonial labor market, the record and sources of nineteenth-century economic growth, economic causes and effects of nineteenth-century immigration, the expansion of education, the economics of westward migration, determinants of long-run trends in the distribution of income and wealth, the quantitative analysis of social mobility, and the economics of racial discrimination in the twentieth-century South. D. Galenson. Autumn, Spring.

223/323. Business Ethics in Historical Perspective. This course examines the way that religious and political movements affect the ethics of business, focusing on such current issues as the conflict between technical efficiency and morality, the ethical status of property rights, the politics of retirement and intergenerational equity, comparable worth and other conflicts between ethical and economic standards for compensation, the ethics of international trade and finance, and ex post redefinitions of the legal status of de facto business practices. These issues are put into historical perspective by relating them to long cycles in religiosity in the United States, to the long-term factors influencing political images of business, and to the factors influencing domestic conceptions of the proper economic relationships between the United States and the rest of the world. R. Fogel. Winter.

225/322. Population and the Economy. PQ: Bus 300 or consent of instructor. This course deals with the effects of swings in population on the stability of the economy and opportunities for business. In both the short run and the medium run, shifts in the demographic rates probably have been more destabilizing than unwise macroeconomic policy or abrupt political realignments. Population change is thus a major challenge to policy makers in business and in government. Topics include the effects of demographic changes on markets for labor and capital, on savings rates and the structure of investment, on taxes and government expenditures, and on household behavior. Problems of planning for the consequences of population changes, including methods of forecasting, are also considered. R. Fogel. Autumn.

227/324. Economics and Demography of Marketing. PQ: Econ 200 and 201 or equivalent. This course examines the factors that influence long-term, intermediate-term, and short-term variations in the demand for both consumer and producer commodities and services: the evolution of markets and methods of distribution in America since 1800, variations in the life cycles of products, the role of demographic factors in analysis of product demand, and the influence of business cycles on product demand. Much attention is given to the use of existing on-line databases for the estimation of a variety of forecasting models. R. Fogel. Spring.

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231. Topics in Macroeconomics and Finance. PQ: Econ 201, 203, 210, and 211 helpful. This course covers topics in the emerging intersection between finance and macroeconomics. Topics include (1) basic models of asset pricing such as the capital asset pricing model, arbitrage pricing theory, and models of the term structure of interest rates, including both their theoretical derivation and empirical implementation; (2) construction and computation of equilibrium macroeconomic models; (3) asset pricing in equilibrium macro models; and (4) empirical evidence of the relation between asset returns and economic fluctuations. The course uses calculus, matrix algebra, some probability, statistics, and econometrics. Staff. Spring.

240. Introduction to Labor Economics. PQ: Econ 201. Course topics include labor supply and the allocation of time, the demand for labor, labor market equilibrium, human capital, discrimination, unemployment, and unions. Staff. Spring.

250. Introduction to Finance. PQ: Econ 200 and Stat 200. The tools of finance used to quantify the risk and return of financial instruments are developed and then applied to standard financial problems faced by firms and investors. Topics include arbitrage pricing, the capital asset pricing model, the theory of efficient markets, option pricing, and the term structure of interest rates. Staff. Autumn.

260. Introduction to Public Finance. This course examines the theory of taxation and the application of this theory to the U.S. tax system, with an emphasis on recent research and on the entire economy, not just on individual markets. Staff. Autumn.

261. Economic Analysis and Public Policy. PQ: Econ 201. This course investigates the political economy of public policies designed to solve a selected group of problems. Policy or program objectives are related to the problems that generated the policy action. Both intended and unintended effects of policy actions are considered. Among the effects that are analyzed are the supply of a good or service, the distribution of benefits and gains, and the distribution of costs. Problems are chosen from the following: housing, education, transportation, pollution, zoning, and health, among others. D. G. Johnson. Winter.

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262. Welfare Economics. PQ: Econ 201. Topics include a brief historical overview of welfare economics, Pareto optimality, consumer and producer surplus, the compensation principle as a policy guide, and second-best solutions to policy problems. Staff. Spring.

264/492. Economics of Education (=Educ 223/323, PubPol 394). Theories of human capital and alternative theories (e.g., signaling and dual labor market theory) are applied to the determinants of educational choice and the implications of these choices for life cycle earnings, the distribution of income, and economic growth. R. Willis. Spring.

265. Environmental Economics (=EnvStd 265). PQ: Econ 201 or consent of instructor. The course applies price theory to the following environmental issues: externalities, distorted incentives, and the market's failure to yield optimal outcomes. Topics include taxes, subsidies, and quotas as solutions to these problems; welfare and efficiency implications; property rights and fisheries; exhaustible and renewable resources; evaluating environmental regulation; government as an autonomous maximizing agent; and divergence between social and governmental interests. S. Wilson. Winter.

266. Urban Economics (=Geog 266/366, PubPol 245). PQ: Econ 201. This course deals with the economics of spatial processes and structures within the city: residential location, employment location, and spatial-temporal change. The following topics are also considered: spatial aspects of the public economic activity within a city, and relationships between central cities and their suburbs; externalities in cities; and the geographical structure of Third World cities. G. Tolley. Autumn.

268. Korean Economy. PQ: Econ 201 and 203, or consent of instructor. This course is concerned with understanding the nature of the Korean economy by studying five of its aspects: (1) its current status, (2) its patterns of transformation since the Korean War, (3) its current problems, (4) its projected evolution, and (5) its relevance to the understanding of other economies. Staff. Spring.

269. Public Choice (=PolSci 235, PubPol 258). PQ: Knowledge of micro-economics. This course is an introduction to major ideas in the literature and seeks to apply the economic notion of rational choice to the context of politics and social choice. Some of the authors covered are Samuelson, Arrow, Buchanan, Olson, and Downs. H. Margolis. Winter.

270. Introduction to International Economics (=PubPol 270). PQ: Econ 201, 202, or consent of instructor. This course deals with the pure theory of international trade--the real side of international economics. Topics include the basis for and gains from trade; the theory of comparative advantage; effects of international trade on the distribution of income, tariffs, and other barriers to trade; and the role of exchange rates. L. Sjaastad. Autumn.

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271. International Finance. PQ: Econ 201 and 203. This course introduces the monetary aspects of international trade. Topics include the balance of payments, the foreign exchange market, the international adjustment mechanism, macroeconomic policies in the open market, the international mobility of capital, and the choice of an exchange rate regime. Staff. Winter.

276. Seminar: The Political Economy of Art (=SocSci 284). Neoclassical economics is applied to the visual arts. The relation of aesthetic to economic value is examined conceptually and empirically. The theories of utility and of human capital are applied to the choices of collectors and curators; the theory of cost and market organization is applied to the activity of artists. The case for and against government intervention is analyzed. This economic approach to the arts is contrasted with others including Ruskin's Political Economy for Art. W. Grampp. Winter.

280. Introduction to Industrial Organization. PQ: Econ 201. This course deals with the organization of economic activity. Topics include the economics of property rights, the theory of regulation, economics and the law, and antitrust policy. Applied problems are stressed. Staff. Winter.

293. Topics in Economic Growth and Development. PQ: Econ 200, 201, 202, 203, and 210. This class examines international disparities in economic growth and explores a variety of underlying factors: trade, agriculture, and resource endowments. Models of aggregate growth and of microeconomic behavior in developing nations are examined. G. Tsiang. Spring.

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294. Topics in Chinese Economy. PQ: Knowledge of basic microeconomics, macroeconomics, and econometrics. In this course, students learn to modify standard economic theory to study the Chinese economy. First, we briefly review the economic situation from 1949 to 1976. Next, we study the evolutionary process of Chinese economic reform since 1978. Last, we point out the difficulties preventing further reforms. Students apply simple econometric techniques to analyze certain aspects of the reform. X. Chen. Spring.

296. Problems of Economic Policy in Developing Countries (=PubPol 286/375). PQ: Econ 201 and 202, or consent of instructor. This course focuses on the application of economic analysis to economic policy issues frequently encountered in developing countries. Topics include sources of economic growth, commercial policy, regional economic integration, inflation and stabilization, fiscal deficits, the choice of an exchange rate regime, and the international debt problem. L. Sjaastad. Winter.

297. Undergraduate Honors Workshop. PQ: Consent of instructor. Must be taken for a letter grade. D. G. Johnson, G. Tsiang. Autumn, Winter, Spring.