The Bachelor of Arts program in economics is intended to equip students with the basic tools required to understand the operation of a modern economy: the origin and role of prices and markets, the allocation of goods and services, and the factors that enter into the determination of income, employment, and the price level.

The Bachelor of Arts concentration in economics requires thirteen courses. These must include the core curriculum, which consists of price theory (Economics 200, 201) and macroeconomics (Economics 202 and 203). One course in economic history (Economics 220, 221, 222, 223, 225, 228, or 229) and two courses in econometrics are also required; the latter requirement is normally met by Statistics 220 and Economics 210.

Some students decide after taking Economics 198-199 (Introduction to Micro and Macroeconomics for Nonmajors) that they would like to concentrate in economics. These students must take Economics 200, 201, and 202. The directors of the undergraduate program will consider petitions to waive the requirement of Economics 203 for students who have taken Economics 198-199 before any of the Economics 200-201-202 courses. Petitions by students taking Economics 198-199 after any of the other Economics 200-202 courses will not be considered.

Students concentrating in economics must also take three mathematics courses beyond the general education requirement. These consist of the third quarter of calculus (Mathematics 133, 153, or 163) and one of these two-quarter sequences: Mathematics 195-196, Mathematics 200-201, or Mathematics 203-204. Although Mathematics 133 is acceptable, students who complete Mathematics 151-152-153 generally perform better in the economics core curriculum.

In addition to the ten courses listed in the previous paragraphs, students concentrating in economics are required to take three elective courses, two of which must be in economics. The third elective also may be in economics, or it may be chosen from Mathematics 203, 204, 205, 207, 208, 209, and 273 (or other courses in mathematics as may be approved by the directors of the undergraduate economics program); Computer Science 105 and 115; and Statistics 251. Only one reading course (Economics 297) may be used as an elective (unless the student is in the honors program).

NOTE: Students wishing to substitute other courses for those listed in the previous paragraphs must obtain written permission from one of the directors of the undergraduate economics program before registering for the course. Registration in graduate 300-level courses is by departmental consent.

It is strongly recommended that students complete the calculus sequence during their first year in the College because it is a prerequisite for the core curriculum (Economics 200-201-202-203). It is further recommended that students take Mathematics 195-196 concurrently with Economics 200-201, and that they take Economics 210 immediately after completing Statistics 220.

† Credit may be granted by examination.

Grading. A maximum of two grades of Pass is permitted in the thirteen courses required for the concentration in economics; the other eleven grades must be quality grades. Only quality grades are acceptable for Economics 200, 201, 202, 203, 209, and 210; and Statistics 220.

Honors. Students with grade point averages of at least 3.0 overall and 3.25 in economics are eligible for the honors program. Students who wish to qualify for honors are required to participate in the Undergraduate Honors Workshop (Economics 298) for a full academic year; Economics 298 may replace up to two elective courses. While participating in that workshop, students write an honors thesis under faculty guidance; to graduate with honors, students must receive a grade of at least A- on the honors thesis. Students interested in the honors program should contact one of the directors of the undergraduate economics program no later than the second quarter of their third year in the College; they should also have completed their econometrics courses before participation in the Undergraduate Honors Workshop.

Preparation for Ph.D. Programs in Economics. Students interested in pursuing graduate study should augment the standard curriculum with higher-level mathematics and statistics courses. These include Mathematics 203-205, Mathematics 250, Statistics 251, and Statistics 244-245 (instead of Statistics 220). Students should also consider taking appropriate courses from other departments in the social sciences.

Such students should schedule an appointment with one of the directors of the undergraduate program early in their second year. The Mathematics Concentration with Specialization in Economics may be of interest to students who have a strong mathematics background.

198. Introduction to Microeconomics. Optional for economics concentrators. By way of economic theory, applications, and contemporary issues, the course treats (1) the behavior and decision making on the part of individuals, business firms, and governments; and (2) the function of costs, prices, incentives, and markets in the American economy. We discuss contemporary topics such as poverty, income distribution, the environment, education, and health care. A. Sanderson. Autumn.

199. Introduction to Macroeconomics. Optional for economics concentrators. Via theory, public policy applications, and basic economic reasoning, this 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 the Federal Reserve Bank; federal spending, taxation, and deficits; and international trade, exchange rates, and the balance of payments. A. Sanderson. Winter.

200. The Elements of Economic Analysis I. PQ: One year of calculus. Students registered for Math 153 or 163 who have an A- average in the first two quarters of calculus may, with consent of instructor, register concurrently for Econ 200. 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. M. Duggan, S. Marcovich, M. Ghatak, Staff, Autumn; G. Tsiang, Staff, Spring.

201. The Elements of Economic Analysis II. PQ: Econ 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. D. Heller, Staff, Autumn; Staff, 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, M. Yorukoglu, Winter; A. Vissing-Jorgensen, 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, Staff, Autumn; X. Gabaix, Staff, Spring.

206. Topics in Mathematical Economics. PQ: Econ 200 and 201, and Math 196. This course focuses on several topics in economic theory: models with imperfect information, incentive problems, problems of risk-sharing, and models with external effects. N. Stokey. Winter.

209. Introduction to Econometrics: Honors. PQ: Stat 220 or 245, and Math 250. This is a foundations course in econometrics for students who are planning to continue their economics study at the graduate level. The topics are essentially the same as those covered in Econ 210, but this course gives a more systematic introduction to the application of statistical theory to economic applications. Staff. Autumn.

210. Econometrics A. PQ: Econ 201 and 202, Stat 220, and Math 195 or 200 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. G. Tsiang, K. Hansen, Autumn; V. Aguirregabiria, Spring.

211. Econometrics B. PQ: Econ 209 or 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. We emphasize applications of those techniques on questions from labor, industrial organization, and macroeconomics. Staff. Spring.

220. The Economy of the Roman Empire (=AncSt 229, ClCiv 229/329, ECL 329, Econ 220, Hist 210/310). The course begins with a brief introduction to Roman imperial history, and then considers the following topics: agrarian production, the economic consequences of urbanization, the types of labor including slaves, the legal institutions for business and investment, and the economic consequences of the demographic structure. Class format includes lecture and discussion of ancient texts. R. Saller. Spring.

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. Typical topics include the economics of colonization, the transatlantic slave trade, the role of indentured servitude and slavery in the colonial labor market, the 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, Winter.

223/323. Business Ethics in Historical Perspective (=BusDP 564, Econ 223/323). 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 related 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 does not meet the economics history requirement. 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 online databases for the estimation of a variety of forecasting models. R. Fogel. Spring.

228/325. European Economic History. PQ: Econ 200. This course is an introduction to major themes in the economic history of Western Europe, emphasizing the economic analysis of institutions and institutional change, population, technology, and political economy. Specific topics include the economics of feudalism; the Black Death; monetary policy and public finance in the formation of national states; the development of markets; revolutions (demographic, agricultural, industrial, and political); international trade; the gold standard; convergence, divergence, and rivalry in economic growth; and economic instability in the interwar period. D. Weir. Winter.

229. Topics in Monetary History. PQ: Knowledge of first-year economics required; some knowledge of European and U.S. history helpful. This course covers selected topics in European and U.S. monetary history from the Middle Ages to the twentieth century. It traces the evolution of money from a simple commodity chosen to measure value, into the intrinsically worthless fiat money of today. This evolution stretches over centuries, and involved learning the best way to manage a currency. Monetary policy being linked to fiscal policy and constraints, this course examines money in the broad context of government revenues, spending, and borrowing over time and in different political regimes. Staff. Spring.

231. Topics in Macroeconomics and Finance. PQ: Econ 201 and 203 required; Econ 210 and 211 recommended. The goal of the course is for students to use and analyze data to verify or refute an economic hypothesis. Lecture topics include the formulation of an economic hypothesis; the translation of an economic hypothesis into a statistical hypothesis; the gathering of data from the Internet and other sources; and the analysis of counterarguments using regression, instrumental variable, and dummy variable techniques. Examples are drawn mainly from macroeconomics. Writing the term paper can be an excellent start on a senior honors paper. C. Mulligan. Autumn.

239. Quantitative Analysis of the Macroeconomy. PQ: Econ 201 and 202. Neoclassical growth theory is developed and used along with national income and product account data to construct model economies that are then used to quantitatively address issues in the macroeconomy. These issues include business cycles, the financing of social security, and evaluating growth and stabilization policies. E. Prescott. Autumn.

240. Introduction to Labor Economics. PQ: Econ 201 and 210. Course topics include labor supply and the allocation of time, the demand for labor, labor market equilibrium, human capital, discrimination, unemployment, and unions. Staff. Winter.

250. Introduction to Finance. PQ: Econ 201 and Stat 220. This course develops the tools to quantify the risk and return of financial instruments. These are applied to standard financial problems faced by firms and investors. Topics include arbitrage pricing, the capital asset pricing model, and the theory of efficient markets and option pricing. Staff. Autumn, Spring.

251. Topics in Finance and Uncertainty. PQ: Basic knowledge of probability theory, and Econ 201 and Stat 220. This course describes the foundations of decision theory under uncertainty: the notion of expected utility, the definition and measure of risk aversion, and the formalization of demand for insurance. It analyzes the role of markets in the efficient allocation of risk within an economy with a special emphasis on financial assets. Finally, a brief introduction to the literature on asymmetric information is provided. P. Chiappori. Winter.

255. Topics in Economic Growth and Development. PQ: Econ 202 and 210. This class examines current issues in the economics of developing countries. The focus of this course is divided equally between macroeconomic models of economic growth and technological change; and between microeconomic studies of land, labor, and credit markets in less developed countries. M. Ghatak. Autumn.

256. Problems of Economic Policy in Developing Countries (=Econ 256, 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.

257. Topics in Chinese Economy. PQ: Econ 201 and 202 required; Econ 210 recommended. In this course, students learn to apply standard economic theory to study the Chinese economy. It includes a review of economic policies from 1949 to 1978, and a study of the Chinese economic reforms since 1978 and their contribution to economic growth, with emphasis on the difficulties preventing further reforms. D. G. Johnson. Spring.

258. 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) current status, (2) patterns of transformation since the Korean War, (3) current problems, (4) projected evolution, and (5) relevance to the understanding of other economies. Staff. Spring.

260. Introduction to Public Finance. PQ: Econ 201. 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 topics such as housing, education, food subsidies, pollution, and income distribution. D. G. Johnson. Winter.

265. Environmental Economics (=Econ 265, 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. Staff. Spring.

266/365. Economics of Urban Policies (=Econ 266/365, Geog 266/366, PubPol 245). PQ: Econ 201. This course covers tools needed to analyze urban economics and address urban policy problems. Topics include: a basic model of residential location and rents; income, amenities, and neighborhoods; homelessness and urban poverty; decisions on housing purchase versus rental, housing taxation, housing finance, and landlord monitoring; models of commuting mode choice; congestion and transportation pricing and policy; and urban growth, urban environmental externalities, and Third World cities. G. Tolley. Winter.

267. Introductory Game Theory. PQ: Econ 201, and Math 195 or 250. Previous experience with game theory not required. This course introduces the key ideas of game theory and explores their applications in economics and the other social sciences. The goal is for students to both understand basic game-theoretic models and also be able to build models of their own. Staff. Autumn.

269. Public Choice (=Econ 269, PolSci 235, PubPol 258). PQ: Knowledge of microeconomics. This course is an introduction to major ideas in the literature that 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 (=Econ 270, PubPol 270). PQ: Econ 201 and 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.

272. Topics in International Economics. PQ: Econ 203; Math 196, 201, or 204; and basic knowledge of probability theory. This course shows students how to use economic models to interpret recent international economic events and debates. In particular, the course focuses on three topics: (1) the effects of trade on wage inequality, (2) the European Monetary Union, and (3) the recent wave of currency crises in emerging markets. J. Ventura. Spring.

273. Regulation of Vice (=Econ 273, PubPol 273). PQ: Econ 200. This course concerns government policy with respect to the traditional vices of drinking, smoking, gambling, illicit sex, and the recreational use of drugs. Among the policies that are considered are prohibition, taxation, treatment, decriminalization, and legalization. The intellectual framework employed to evaluate various policies is primarily economic, though other disciplines are also drawn upon. J. Leitzel. Spring.

277. Health Economics and Public Policy (=Bus 857, Econ 277, PubPol 283/383, SSA 477). PQ: Econ 203 and 210 with grades of B or higher, and consent of instructor. This course analyzes the economics of health care in the United States with particular attention paid to the role of government. D. Meltzer. Spring. Not offered 1999-2000; will be offered 2000-2001.

278. Public Policy Analysis (=Econ 278, PubPol 222). PQ: Econ 200. PubPol 221-222-223 may be taken in sequence or individually. This course reviews and augments the basic tools of microeconomics developed in Econ 200, and applies these tools to policy problems. We examine situations in which private markets are likely to produce unsatisfactory results, suggesting a potential rationale for government intervention. The goal is to allow students to comprehend, develop, and respond to economics arguments (both their strengths and their weaknesses) when formulating or evaluating public policy. J. Leitzel. Winter.

279. Economies in Transition: China, Russia, and Beyond (=Econ 279, PubPol 271). PQ: Econ 200 or consent of instructor. The ongoing postsocialist transitions are discussed in this course, particularly those of Russia and China. The basic tool of analysis is the emerging "economics of transition." Various programs of macroeconomic stabilization, price liberalization, and privatization are analyzed, and their effects on inflation, unemployment, and living standards are assessed. We cover issues highlighted in the "post-Washington consensus" (e.g., corporate governance, competition policy, and the role of the state). J. Leitzel. Winter.

280. Introduction to Industrial Organization. PQ: Econ 201. This course extends the analysis from Econ 201 to examine the structure and behavior of firms within industries. Topics include oligopolistic behavior, the problems of regulating highly concentrated industries, and the implementation of U.S. antitrust policy. Staff. Spring.

281. The Economics of Sports. PQ: Econ 201. This is a course in microeconomics that applies traditional product and factor market theory and analysis to contemporary economic issues in professional and college athletics, including the sports business; market structures and outcomes; the market for franchises; barriers to entry, rival leagues, and expansion; cooperative, competitive, and collusive behavior among participants; player productivity and compensation; racial discrimination; antitrust legislation; and financing of and subsidies for stadiums. A. Sanderson. Spring.

286. Introduction to Economic Analysis of Law. PQ: Econ 199 or 201 required. This course examines the interdependence of the market and legal institutions. Topics include property rights, contracts, torts, and the Coase theorem. Staff. Spring.

287. The Economics of Crime (=Econ 287, PubPol 232). PQ: Econ 199 or 201, and Econ 210 or Stat 220 strongly recommended. This course uses theoretical and empirical economic tools to analyze a wide range of issues related to criminal behavior. Among the topics discussed are the police, prisons, gang behavior, guns, drugs, capital punishment, labor markets and the macroeconomy, and income inequality. Special emphasis is devoted to analyzing the optimal role for public policy. S. Levitt. Spring.

297. Undergraduate Reading and Research. PQ: Consent of directors of the undergraduate program. Students are required to submit the College Reading and Research Course Form. Available for either Pass or letter grading. D. G. Johnson. Autumn, Winter, Spring.

298. Undergraduate Honors Workshop. PQ: Consent of instructor. D. G. Johnson. Autumn, Winter, Spring.