Economics (ECON)
Chair: Professor Jenny Bourne Wahl
Professors: H. Scott Bierman, Michael Hemesath, Mark T. Kanazawa, Stephen R. Lewis, Jr., Martha White Paas, Stephen H. Strand, Jenny Bourne Wahl
Benedict Distinguished Visiting Professors: Tammy R. Feldman, Bradley G. Lewis
Assistant Professor: Nathan D. Grawe
Visiting Instructors: Bruce Wambheim, W.P. Wheatley
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. Unless specifically noted otherwise, all economics courses at the 200-level and above have both Economics 110 and 111 as prerequisites. Mathematics 215 (or 265) 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. The department does not grant academic credit for internships.
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. Paas, S. Strand, B. Wambheim
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—T. Feldman, N. Grawe, M. Kanazawa, J. Wahl, W.P. Wheatley
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, Not offered in 2003-2004.
ECON 221. Cambridge Program: Contemporary British Economy This course studies the theoretical and policy debates in Britain from the 1930s to the present and the development of the structure of the British economy and institutions during that period. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Summer—Non-Carleton faculty
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. A week-long trip to sites of the Industrial Revolution and excursions to other locations of historical significance are an important aspect of this course. Prerequisites: Economics 110 and 111. 3 credits cr., SS, Summer—M. Hemesath
ECON 223. Cambridge Program: Seminar on the Life of J.M. Keynes This seminar will examine the life and ideas of John Maynard Keynes, and the intellectual milieu in which he lived and worked in Britain during the first half of this century. This course will emphasize student-led discussions. Prerequisites: Economics 110 and 111. 4 credits cr., S/CR/NC, SS, Summer—M. Hemesath
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. Prerequisites: Economics 110 and 111. 3 credits cr., SS, Summer—M. Hemesath
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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2003-2004.
ECON 232. American Economic History An introduction to the growth of the American economy from colonial times to the present with emphasis on the 19th 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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2003-2004.
ECON 233. European Economic History Cross-listed with FRST 231. A comparative study of dynamic economic components in the growth of western European countries, with particular attention to Great Britain, from the 16th to the 20th century. Topics include the methodology of economic history, agriculture, technology, population, foreign trade, the role of the state, and monetary systems. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Fall—M. Paas
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, Spring—Staff
ECON 242. Economics of Agricultural and Food Policy The distributional and structural consequences of U.S. agricultural policy on consumers, farmers, and rural communities will be investigated. The course will also address the economics of food and agricultural policy in the areas of food labeling, biotechnology/Genetically Modified Organisms (GMO's), food safety, and organic foods. In the process of understanding the economic impacts of these policies, their political economic origins will be discussed. Some attention will also be paid to the economics of and international conflicts arising from agricultural trade policy. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Winter—W.P. Wheatley
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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Winter—N. Grawe
ECON 250. History of Economic Ideas A survey of the evolution of economic thought from the 17th century to the present, with emphasis on the intellectual and historical background which influenced economists. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Spring—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. Prerequisites: Economics 110 and 111. 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 2003-2004.
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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2003-2004.
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. Prerequisites: Economics 110 and 111 and Mathematics 111. 6 credits cr., SS, Not offered in 2003-2004.
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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Winter—W.P. Wheatley
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 2003-2004.
ECON 272. Organizations and Decisionmaking What explains the existing 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 will survey the development of the modern firm since the 19th century and examine how economists have extended the neoclassical model to better describe the modern firm. Through historical and current business firm case discussions, the course will also introduce analytical frameworks that emphasize the role of organizational culture, decision-making characterized by bounded rationality, and the importance of social structures and context to the organization of firms. Prerequisites: Economics 110 and 111 6 credits 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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Winter—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 problemsand opportunitiesfor 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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Spring—J. Wahl
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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Fall—J. Wahl
ECON 276. Money and Banking This course will examine the role of money and monetary institutions in determination of income, employment, and prices in domestic and world economy. It will also examine the role of commercial banking and financial markets in a market based economy. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Fall—B. Wambheim
ECON 277. Public Interest in Private Economic Behavior Why does the government approve some mergers and challenge others? Why does the government create barriers to entry in certain industries? What are the economic welfare impacts of these government interventions in the marketplace? This course provides an introduction to the public regulation of private economic activity. Economic arguments for regulation and antitrust legislation based on natural monopoly, information failure, and externalities will be discussed. Emphasis will be on current policy issues in antitrust and intellectual property. The course will use case discussions to link the theoretical frameworks to real world applications. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Winter—T. Feldman
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). Prerequisites: Economics 110 and 111. 6 credits cr., SS, Fall—W.P. Wheatley
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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Spring—Staff
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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Winter—B. Lewis
ECON 282. Financial Markets Study of the historical economic functions, and efficiency of financial institutions and markets in the United States. 6 credits cr., SS, Winter—B. Lewis
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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2003-2004.
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. Prerequisites: Economics 110 and 111. 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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Winter,Spring—N. Grawe
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, for students entering Carleton fall 2001 and before, Math 265) or 275. This class is normally taken by juniors. Sophomores considering enrolling should speak to the instructor. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Fall,Spring—N. Grawe, M. Kanazawa
ECON 382. Beijing Program: Chinese Economy in Transition Cross-listed with POSC 382. This course introduces the student to China's historical, political, and economic development in the 20th century. The primary framework applied is an analysis of the strategies and outcomes of economic development within the context of a particular socialist economic and political system. While focusing mainly on economic problems and outcomes, the study will include an analysis of contending political-economic philosophies within real economic constraints. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2003-2004.
ECON 395. Topics in Health Economics An economic analysis of the nature of demand for different types of health services, the supply of those services by different providers, the health care industry, market failures in providing health care, and alternative health care delivery systems. Prerequisites: Economics 110, 111, 330, 331, and 332 or concurrent enrollment in 332. 6 credits cr., SS, Spring—M. Hemesath
ECON 395. Advanced Topics in Public Policy In this seminar modern theoretical and empirical techniques will be developed to get beyond the "it depends" answer. The focus will be on practical ways to build on existing research about a microeconomic public policy issue to improve our understanding of the factors that determine the desirability of that policy. Topics may include: the estimate of correct measures of consumer and producer surplus; the valuation of life and limb; policy evaluation under conditions of uncertainty; taxes and behavior; strategic interaction between firms and regulators; the impact of regulatory changes on economic behavior; and the creation, maintenance, and use of market power. Prerequisites: Economics 110, 111, 330, 331 and 332 (may be taken concurrently). 6 credits cr., SS, Fall—H.S. Bierman, S. Strand
ECON 395. Economics of Land, Water and the Environment This seminar examines a wide range of issues relating to the economics of natural resources, especially land and water, and how their use affects the environment. Issues include not only narrow economic allocation decisions and the policy implications, but also larger issues of property rights definition, contractual arrangement, public choice, and institutional development. New approaches in these areas have proven highly fruitful when applied to a variety of natural resources including water, farmlands, minerals, oil, timber, grazing land and wildlife. Prerequisite: Economics 110, 111, 330, 331 and 332 or concurrent enrollment in 332. 6 credits cr., SS, Fall—M. Kanazawa
ECON 400. Integrative Exercise 6 credits cr., S/NC, ND, Fall,Winter,Spring—Staff