Economics (ECON)
Chair: Professor Jenny Bourne Wahl
Professors: H. Scott Bierman, Michael Hemesath, Mark T. Kanazawa, Martha White Paas, Stephen H. Strand, Jenny Bourne Wahl
Visiting Associate Professor: Tammy R. Feldman
Assistant Professor: Nathan D. Grawe
Visiting Assistant Professor: W.P. Wheatley
Visiting Instructor: Bruce Wambheim
Economics analyzes 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; they offer a good foundation for further work in economics, but they have also been designed for 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 275) 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 This course gives students a foundation in the general principles of economics as a basis for effective 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 concepts 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—M. Paas, S. Strand, B. Wambheim
ECON 111. Principles of Microeconomics This course gives the students a foundation in the general principles of economics as a basis for effective citizenship and, when combined with 110, as a preparation for all advanced study in economics. Topics include: consumer choice theory; 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 policy directed towards problems of public finance, pollution, natural resources, and public goods. 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 provides a forum to discuss the current news, particularly economic and international. Emphasis is on analyzing events and their implications for the United States. Students are challenged to examine the assumptions they make and to think critically while honing rhetorical skills. Prerequisite: Economics 110 and 111. 2 credits cr., S/CR/NC, ND, Fall,Winter,Spring—M. Paas
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—N. Grawe
ECON 223. Cambridge Program: The Great Economists of Cambridge Students examine excerpts from the writings of great economic thinkers associated with Cambridge. Class discussion emphasizes the works of Marshall, Keynes, and Hayek among others. We read one groundbreaking piece written by each author and then explore how and why the ideas presented significantly altered the way economists think. Prerequisite: Economics 110 and 111. 4 credits cr., S/CR/NC, SS, Summer—N. Grawe
ECON 224. Cambridge Program: Economics of Inequality in Britain In this course students are introduced to the economics of the inequality. Special emphasis is placed on theories of economic inequality within and across generation. Topics covered include the trade-off between quantity and quality of children, intergenerational mobility, wage/price controls, and hour reductions policies (like mandatory overtime legislation). In each case, student study empirical applications using British data. Prerequisite: Economics 110 and 111. 3 credits cr., SS, Summer—N. Grawe
ECON 231. Soviet and Post-Soviet Economics This course focuses 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, are discussed. The economic performance of the Soviet economy is examined with an eye toward understanding the forces that led to perestroika. The course concludes 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, Fall—M. Hemesath
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 production technology, 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 are 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 2004-2005.
ECON 233. European Economic History A comparative study of dynamic economic components in the growth of western European countries, with particular attention to Great Britain, from the sixteenth to the twentieth 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 236. Economics of the European Union The evolution of economic and monetary union in Europe has been underway for over 50 years. This course examines the economics of the customs union, common market, and monetary union that characterize this period in European history. Microeconomic aspects of European labor, capital and product markets, as well as national monetary and fiscal policies are discussed. Emphasis is given to tracing in an historical context the economic theories and polices that have been central in creating the present state of the European Union. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Spring—S. Strand
ECON 240. Economics of Developing Countries 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. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Spring—W.P. Wheatley
ECON 242. Economics of Agricultural and Food Policy The distributional and structural consequences of U.S. agricultural policy on consumers, farmers, and rural communities are investigated. The course also addresses 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 are discussed. Some attention is also paid to the economics of and international conflicts arising from agricultural trade policy. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2004-2005.
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 look at race and gender discrimination, industry wage differentials, educational inequality, and changes in inequality within these groups. Because the effects of inequality can be mitigated by movements between economic classes, we also study mobility both within and across generations. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2004-2005.
ECON 250. History of Economic Ideas A survey of the evolution of economic thought from the seventeenth century to the present, with emphasis on the intellectual and historical background which influenced economists. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Winter—B. Wambheim
ECON 260. Managerial Economics I Managerial Economics provides students with the opportunity to apply knowledge of micro- and macro-economic principles to decision-making in the real world. This course emphasizes 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 will be an integral part of the course, which concludes with an introduction to some basic decision-making techniques (e.g. break-even analysis, naive forecasting models) that use accounting data. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2004-2005.
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 include demand and cost curve analysis as well as the implications of alternative pricing and production choices. Among the analytical techniques used are linear programming, econometrics, calculus, and game theory. Prerequisite: Economics 260. 6 credits cr., SS, Winter—S. Strand
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, Winter—M. Kanazawa
ECON 270. Economics of the Public Sector A theoretical and empirical examination of the government's role in the U.S. economy. Emphasis is placed on policy analysis using 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, Not offered in 2004-2005.
ECON 271. Economics of Natural Resources and the Environment This course focuses on environmental economics, energy economics, and 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 are analyzed. Prerequisite: Economics 111. 6 credits cr., SS, Spring—M. Kanazawa
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 survey the development of the modern firm since the nineteenth 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 also introduces 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 This course examines a number of important aspects of water as a legal/political/economic factor in the development of the western United States. The topics 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, Not offered in 2004-2005.
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, Not offered in 2004-2005.
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 examines the role of money and monetary institutions in determination of income, employment, and prices in domestic and world economy. It also examines 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 are discussed. Emphasis is on current policy issues in antitrust and intellectual property. The course uses case discussions to link the theoretical frameworks to real-world applications. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2004-2005.
ECON 278. Industrial Organization and Pricing Policy This course analyzes the firm's marketing and pricing problems, its conduct, and the resulting economic performance, given the nature of the demand for its products, its buying markets, the nature of its unit costs, and the structure of its selling markets. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Not offered in 2004-2005.
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 are analyzed. Prerequisites: Economics 110 and 111. 6 credits cr., SS, Winter—M. Hemesath
ECON 281. International Finance This course studies theories of the multi-faceted interaction between the balance of international payments and foreign exchange market and the general levels of domestic prices, employment and economic activity. Topics 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, Not offered in 2004-2005.
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, Not offered in 2004-2005.
ECON 330. Intermediate Price Theory An analysis of the forces determining relative prices within the framework of production and distribution. This class is normally taken by juniors. Sophomores considering enrolling should speak to the instructor. Prerequisites: Economics 110 and 111, Mathematics 111 or its equivalent. 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. This class is normally taken by juniors. Sophomores considering enrolling should speak to the instructor. Prerequisites: Economics 110 and 111, 330 or consent of instructor. 6 credits cr., SS, Winter,Spring—M. Hemesath
ECON 332. Econometrics This course is an introduction to the statistical methods used by economists to test hypotheses and to study and quantify economic relationships. The course emphasizes both statistical theory and practical application through analysis of economic data sets using statistical software. Topics include two-variable and multiple regression, interval estimation and hypothesis testing, discrete and continuous structural change, parameter restrictions, model construction, heteroscedasticity, autocorrelation, and multicollinearity. This course is normally taken by juniors. Sophomores considering enrolling should speak to the instructor. Prerequisite: Mathematics 111 and either Mathematics 215 or 275 (or, for students entering Carleton fall 2001 and before, Math 265). Prerequisites: Economics 110 and 111. 6 credits cr., SS, Fall,Spring—N. Grawe, M. Kanazawa
ECON 395. Topics in Antitrust, Intellectual Property and Regulation This seminar focuses on current issues in antitrust, intellectual property and regulation in various industries. Economic analysesparticularly empirical analysesof the effects of mergers, anticompetitive conduct, and regulations are highlighted. Prerequisites: Economics 110, 111, 330, 331 and 332 or concurrent enrollment in 332. 6 credits cr., SS, Fall—T. Feldman
ECON 395. Public Policy and Public Choice The course offers an economic analysis of public policies enacted at both local and national levels. It also covers empirical methods for investigating the political processes which result in such policies. Areas of interest encompass agriculture and food policy, antipoverty programs, education, energy, tax policy, and transportation. Questions examined may include the following: How do we measure the economic benefits of the HeadStart program? How do CAFE (i.e., fuel efficiency) standards affect automobile prices? Do estate taxes interact with charitable giving? Do the economic interests of constituents predict a legislator's voting record? 6 credits cr., SS, Fall—W. P. Wheatley
ECON 395. Economics of Europe Students use economic analysis to investigate topics related to Europe. 6 credits cr., SS, Fall—S. Strand
ECON 395. Advanced Topics in Labor Economics Labor economics is the study of work and pay. It encompasses a wide variety of topics, including the nature of the labor contract, human capital investment, fringe benefits, search and hiring, turnover, working conditions, discrimination, union activities, income and wealth distribution, and government policies. The seminar considers labor market activities within the larger context of general household decision-making about family formation, the timing of marriage and childbirth, and the allocation of unpaid household work among family members. Prerequisites: Economics 330, 331, and 332 (may be taken concurrently). 6 credits cr., SS, Spring—J. Wahl
ECON 400. Integrative Exercise 6 credits cr., S/NC, ND, Fall,Winter—T. Feldman, M. Hemesath, S. Strand, P. Wheatley