Carleton College

ECON 100. Catastrophe Catastrophes have the potential to destroy large parts of life on earth. For example, the Black Death, the possibility of a pandemic, a collision with an asteroid or irreversible climate change. We will examine several catastrophes from an interdisciplinary perspective that will meld the insights of lawyers, economists, psychologists and other social scientists with those of researchers in the physical sciences. We will consider why the public and policymakers often ignore such risks and what concrete ways of response are possible. What will they cost in terms of national sovereignty or civil liberties. 6 cr., AI, WR1, Fall—M. Paas

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 cr., SS; SI, QRE, Fall,Winter,Spring—Staff

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 cr., SS; SI, QRE, Fall,Winter,Spring—Staff

ECON 221. Cambridge Program: Contemporary British Economy This course will focus on 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. 4 cr., SS; SI, Summer—M. Hemesath, S. Strand

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. The week-long trip to sites of the Industrial Revolution and excursions to other locations of historical significance are important aspects of this course. Prerequisites: Economics 110 and 111. 6 cr., SS; SI, Summer—M. Hemesath, S. Strand

ECON 223. Cambridge Program: The Life of J. M. Keynes This course will examine the life and times of J. M. Keynes. In addition to studying the economic ideas of Keynes, students will examine the social and political milieu in Britain in the first half of the twentieth century. 4 cr., S/CR/NC, SS; SI, Summer—M. Hemesath, S. Strand

ECON 224. Cambridge Program: Economics of Multinational Enterprises this course will provide a brief introduction to the economics of multinational enterprises (MNE). We will examine the economic theory of MNEs, with a particular emphasis on understanding when a MNE is likely to be a viable form of economic organization. We will also discuss the interaction between MNEs and their host countries. Finally, we will use a series of business school cases to explore the interaction between economic theory and the actual operations of MNEs. In addition to classroom work, we will take several trips to London to visit businesses which will give us further opportunities to examine the interaction between economic theory and the real world of business. Prerequisite: Economics 110 and 111. 4 cr., SS; SI, Summer—M. Hemesath, S. Strand

ECON 232. American Economic History: A Cliometric Approach An introduction to the growth of the American economy from colonial times to the present with emphasis on the nineteenth century. Topics include technical change, the choice of production technology, income distribution, demographic transition, factor markets, and the role of institutions. Debates in economic history such as the economic viability of antebellum slavery, the integration of capital markets, the role of railroads in the growth process, and the economic impact of the New Deal are evaluated with an emphasis on empirical evidence. May be counted toward the History major. Prerequisites: Economics 110 and 111. 6 cr., SS, WR; SI, WR2, QRE, Spring—B. Wambheim

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 cr., SS, WR; SI, WR2, IS, QRE, Winter—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 cr., SS; SI, IS, QRE, Fall—S. Strand

ECON 240. Microeconomics of Development This course explores household behavior in developing countries. We will cover areas including fertility decisions, health and mortality, investment in education, the intra-household allocation of resources, household structure, and the marriage market. We will also look at the characteristics of land, labor, and credit markets, particularly technology adoption; land tenure and tenancy arrangements; the role of agrarian institutions in the development process; and the impacts of alternative politics and strategies in developing countries. The course complements Economics 241. This course is part of the off-campus winter break Bangladesh program involving two linked courses in the fall and winter. Prerequisites: Economics 110 and 111. 6 cr., SS; SI, IS, QRE, Fall—F. Bhuiyan

ECON 241. Growth and Development Macroeconomic issues, such as growth and distribution, that arise within developing countries will be examined in this course. The course complements Economics 240. Prerequisite: Economics 110 and 111. 6 cr., SS; SI, IS, QRE, Not offered in 2012-2013.

ECON 242. Economics of Education This course investigates economic issues related to education. The course incorporates both theoretical and empirical works to provide a better understanding of how economists view the educational problems that persist in different countries. The course covers a wide range of topics including literature on human capital formation, returns to education, private and charter schools, early childhood programs, and educational problems in developing countries. Prerequisites: Economics 110 and 111. 6 cr., SS, Not offered in 2012-2013.

ECON 243. Economic Demography This course explores topics in population studies, or demography, from an economic perspective. Core demographic variables, such as fertility, mortality, and migration, are both consequences and determinants of economic factors. We will cover basic demographic concepts and measures, and we will use economic theory to understand the relationship between economics and demography. Potential topics covered include: the dynamics of fertility and child bearing decisions, marriage markets, migration, household composition, intergenerational mobility, and societal shifts in age structure. Prerequisites: Economics 110 and 111. 6 cr., SS; SI, QRE, Not offered in 2012-2013.

ECON 244. Analysis of Microeconomic Development Models This course is the second part of a two-term course sequence beginning with Economics 240. This course will focus on critically analyzing the appropriateness of modern microeconomic development models in the context of Bangladesh. Students exposed to various on-site visits and lectures in Bangladesh during the winter break will be required to research, write and present their views on the reliability of different model assumptions and implications they studied in Economics 240. Prerequisite: Economics 110, 111, and 240. 6 cr., SS, WR; SI, WR2, IS, QRE, Winter—F. Bhuiyan

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 cr., SS; SI, QRE, Not offered in 2012-2013.

ECON 246. Economics of Welfare This course presents economic theory on how society as a whole ranks and chooses between different alternatives. It delves into the realm of normative economics analyzing objectives society may want to pursue, mechanisms designed to reach those objectives, and the resulting welfare of individuals affected by the choices made. The theoretical tools discussed will be used to study different mechanisms of voting, redistributing income, government intervention, auctions, and trade. Among other things, students will be exposed to the Pareto criterion, Arrow’s impossibility theorem, the Vickery-Clarke-Grove mechanism, the Coase theorem, utilitarianism, Rawlsian ethics, and welfare theorems. Prerequisite: Economics 110 and 111. 6 cr., SS; SI, IS, QRE, Spring—F. Bhuiyan

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 cr., SS, WR; SI, WR2, Spring—M. Paas

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 cr., SS; SI, QRE, Fall—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 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. Prerequisites: Economics 110 and 111. 6 cr., SS; SI, QRE, Not offered in 2012-2013.

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 cr., SS; SI, QRE, Winter—M. Kanazawa

ECON 264. Health Economics An economic analysis of the nature of demand for different types of health services, the supply 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. Proposals for national health insurance will be discussed. Prerequisites: Economics 110 and 111. 6 cr., SS; SI, QRE, Not offered in 2012-2013.

ECON 265. Game Theory and Economic Applications Game theory is the study of purposeful behavior in strategic situations. It serves as a framework for analysis that can be applied to everyday decisions, such as working with a study group and cleaning your room, as well as to a variety of economic issues, including contract negotiations and firms' output decisions. In this class, modern game theoretic tools will be primarily applied to economic situations, but we will also draw on examples from other realms. Prerequisites: Economics 110 and 111. 6 cr., SS; SI, QRE, Spring—L. Feiler

ECON 266. Experimental Economics Controlled experiments are a useful tool for testing and improving upon economic theory. This course will provide an introduction to experimental methodology, with an emphasis on design and hypothesis testing. We will examine experimental results across a wide range of economic topics, including individual decision making, auctions, public goods, and asset markets. Students will participate in experiments, as well as design and conduct their own studies. Prerequisites: Economics 110 and 111. 6 cr., SS; SI, QRE, Not offered in 2012-2013.

ECON 267. Behavioral Economics Why do some observations of consumer behavior contradict the predictions of economic theory? By combining psychological and economic models of behavior, behavioral economists develop alternatives to standard economic theory to explain observed behavioral anomalies. This course will examine questions such as whether addictions can be considered rational, why people hold losing stocks longer than theory predicts, why most dieters are unsuccessful and why people don’t save enough money for retirement. Topics covered may include expected utility theory, bounded rationality, prospect theory, hyperbolic discounting and rational addiction. Prerequisite: Economics 110 and 111. 6 cr., SS; SI, QRE, Winter—L. Feiler

ECON 268. Economics of Cost Benefit Analysis Cost-benefit analysis is a tool commonly used by economists and policy makers to compare and choose among competing policy options. This course will cover the basic theory and empirical techniques necessary to quantify and aggregate the impacts of government policy, especially as related to the environment. Topics covered include the time value of money; uncertainty; sensitivity analysis; option value; contingent valuation; hedonic estimation; basic research design. Throughout the course case studies will be used to elucidate and bring life to the theoretical concepts. Some statistics background will be useful. 6 cr., SS; SI, QRE, Winter—A. Swoboda

ECON 270. Economics of the Public Sector This course provides 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 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 cr., SS; SI, QRE, Not offered in 2012-2013.

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 cr., SS; SI, QRE, Winter—T. Bauer

ECON 272. Economics, Property and Institutions in Natural Resouces This course examines the economic, historical, legal and institutional roots of the present-day environmental crisis, with the main, but not exclusive, focus on the United States. Topics covered include land and timber policy, minerals extraction, grazing rights, fisheries management, energy use and production, agriculture, wildlife management, endangered species protection, and rain forest preservation. Prerequisite: Economics 110 and 111. 6 cr., SS, WR; SI, WR2, QRE, Spring—M. Kanazawa

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 cr., SS; SI, QRE, Not offered in 2012-2013.

ECON 274. Labor Economics Why do some people choose to work and others do not? Why are some people paid higher wages than others? What are the economic benefits of education for the individual and for society? How do government policies, such as subsidized child care, the Earned Income Tax Credit and the income tax influence whether people work and the number of hours they choose to work? These are some of the questions examined in labor economics. This course will focus on the labor supply and human capital decisions of individuals and households. Prerequisites: Economics 110 and 111. 6 cr., SS; SI, QRE, Not offered in 2012-2013.

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 cr., SS, WR; SI, WR2, QRE, Not offered in 2012-2013.

ECON 276. Money and Banking This course examines the role of money and monetary institutions in determination of income, employment, and prices in the domestic and world economies. It also examines the role of commercial banking and financial markets in a market-based economy. Prerequisite: Economics 110 and 111. 6 cr., SS; SI, QRE, Fall—B. Wambheim

ECON 277. An Economic History of Financial Crises The course provides an historical perspective on financial bubbles and crashes and reviews the main theories of financial crises. The course will look at the long history of financial crises to highlight recurring themes and to try to determine, among other things, what went wrong, what elements precede most crises, and which responses were effective. In addition, the course will provide an overview of the business cycle theories of Mill, Marx, Keynes, and other economists. Prerequisite: Econ 110 and 111. 6 cr., SS; SI, Winter—B Wambheim

ECON 278. Industrial Organization and Firm Behavior 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 cr., SS; SI, QRE, Not offered in 2012-2013.

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 cr., SS; SI, QRE, Not offered in 2012-2013.

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 cr., SS; SI, QRE, Spring—R. Szulga

ECON 282. Investment Finance The main objective of this course is to investigate various aspects of modern investment theory and develop basic techniques for applying this theoretical framework to the real-world data. Topics covered include: portfolio and asset pricing theories; fixed-income security management; derivatives with the primary focus on option pricing. The class will develop and actively use univariate calculus for theory-building and statistical techniques for data analysis. Prerequisite: Economics 110 and 111. 6 cr., SS; SI, QRE, Not offered in 2012-2013.

ECON 284. Economic Development in Japan Japan’s economic development is examined in four broad time periods: the social and economic preconditions for growth during the Tokugawa period, the rapid economic development of the Meiji and Taisho eras, the so-called "Japanese economic miracle" of the post-WWII period, and the extended economic malaise of the last 20 years. Emphasis is given to Japan’s rapid growth in the post-war period, its more recent economic malaise, the relevance of economic events in Japan to the rise of the Chinese economy, and a comparison of the Japanese and American responses to asset bubbles and their collapse in the last decade. Prerequisite: Economics 110 and 111. 6 cr., SS; SI, IS, QRE, Fall—B. Dalgaard

ECON 329. 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 multicollinerarity. Prerequisite: Mathematics 111 (or it's equivalent) and either Mathematics 215 or 275 and Economics 110 and 111. 6 cr., SS; SI, QRE, Fall,Spring—M. Kanazawa

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 cr., SS; SI, QRE, Fall,Winter—J. Bourne

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 cr., SS; SI, QRE, Winter,Spring—R. Szulga

ECON 395. Advanced Topics: Economics of Land, Water and the Environment This seminar examines a wide range of issues relating to the economics of natural resources 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 329 (or 332), 330, 331 and or concurrent enrollment in 329 . 6 cr., SS, WR; SI, WR2, QRE, Fall—M. Kanazawa

ECON 395. Advanced Topics in International Macroeconomics This course focuses on topics and empirical puzzles in International Macroeconomics. It covers exchange rate determination and forecasting, the effect of monetary and fiscal policies in open economies, exchange rate crises, failures of purchasing power parity and law of one price, the so called "consumption correlations puzzle" and the home bias in international investment. A basic theoretical dynamic model of a small open economy is introduced, as well as time series econometric methods that are commonly used by empirical researchers in the field. Prerequisite: Economics 329 (or 332), 330, and 331 or concurrent enrollment in 329. 6 cr., SS, WR; SI, WR2, IS, QRE, Fall—R. Szulga

ECON 395. Advanced Topics in Economic Development Students will be exposed to theoretical models of economic development both from a micro and a macro perspective. Econometric models including probits, logits, instrumental variables, ordered probits, and ordered logits will be applied to micro-level data to study theoretical models dealing with migration, poverty, inequality, nutrition, development program evaluation, and decision making in the context of developing countries. Economic development will also be explored from the perspective of the "growth literature" where macro level panel data will be explored using fixed-effects and random-effects panel regression models. Prerequisite: Economics 329 (or 332), 330, and 331 or concurrent enrollment in 329. 6 cr., SS, WR; SI, WR2, IS, QRE, Fall—F. Bhuiyan

ECON 400. Integrative Exercise 6 cr., S/NC, ND, Winter,Spring—F. Bhuiyan, M. Kanazawa, R. Szulga