Economics (ECON)
Chair: Professor Michael Hemesath
Professors: H. Scott Bierman, Michael Hemesath, Mark T. Kanazawa, George H. Lamson, Stephen R. Lewis, Jr., Martha White Paas, Stephen H. Strand, Jenny Bourne Wahl
Assistant Professor: Nathan D. Grawe
Visiting Instructors: Tamar Khitarishvili, 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 ECON 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, T. Khitarishvili, M. Paas, S. Strand
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— N. Grawe, M. Hemesath, 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, Fall,Winter,Spring—M. Paas
ECON 221. Contemporary British Economy In this course we will study the course of the theoretical and policy debates in British economics since the 1930's and the development of the structure of the British economy and institutions during that period. 6 credits cr., SS, Summer—Non-Carleton Faculty
ECON 222. Cambridge Program: The Industrial Revolution in Britain The development of the British economy during the Industrial Revolution is studied with particular emphasis on the wool, cotton textile, iron, pottery, shipping, and coal mining industries as well as on urban development in London. Site visits to locations of significance are an important aspect of this course. 4 credits cr., S/CR/NC, SS, Summer—G. Lamson
ECON 223. Cambridge Program: Seminar in the Works of J. M. Keynes The purpose of the seminar is to examine the intellectual milieu in which Keynes worked at Cambridge. Readings will include the Life of J.M. Keynes, Essays in Persuasion, excerpts from the General Theory and the Shadow of Keynes. This will be a discussion class. 2 credits cr., SS, Summer—G. Lamson
ECON 224. Cambridge Program: Macroeconomics Policy in an Open Economy Theories of the multifaceted interaction between the balance of international payments and foreign exchange market and the general level of domestic prices, employment and economic activity will be illustrated with specific examples from British economic history and the contemporary British economy. Foreign exchange markets and exchange rate determination, adjustment mechanisms in international payments, the nineteenth century gold standard, Britain's return to gold in the 1920's, Sterling and the U.S. dollar in the 1980's and 1990's, international monetary systems, financial integration in Europe, and the macro policies for internal and external balance. Site visits to financial institutions in the city of London. 4 credits cr., SS, Summer—G. Lamson
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. 6 credits cr., SS, Not offered in 2002-2003.
ECON 232. American Economic History 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 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. 6 credits cr., SS, Not offered in 2002-2003.
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. 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, Winter—T. Khitarishvili
ECON 241. Technological Progress and Development Cross-listed with LTAM 239. The course will examine the role of technological progress in the development of human civilization in agrarian economies, in traditional industrial societies and in what has been called the new economy. Education and health are among the topics to be examined as important determinants of a country's ability to invent and adopt new technologies. Social and distributional consequences of technological progress will also be assessed. 6 credits cr., SS, Spring—T. Khitarishvili
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. 6 credits cr., SS, Spring—N. Grawe
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. 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. 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 2002-2003.
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. 6 credits cr., SS, Winter—M. Kanazawa
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. Prerequisite: Mathematics 111. 6 credits cr., SS, Not offered in 2002-2003.
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. 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, Spring—M. Kanazawa
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. Prerequisite: Economics 111. 6 credits cr., SS, Not offered in 2002-2003.
ECON 274. Labor Economics What do you want from work? What do employers want from you? The hurly-burly of the international marketplace creates problems—and opportunities—for 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. 6 credits cr., SS, Not offered in 2002-2003.
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. 6 credits cr., SS, Fall—J. Wahl
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). 6 credits cr., SS, Not offered in 2002-2003.
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. 6 credits cr., SS, Fall—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 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. 6 credits cr., SS, Winter—G. Lamson
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. 6 credits cr., SS, Spring—G. Lamson
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. 6 credits cr., SS, Fall,Winter—S. Bierman
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. 6 credits cr., SS, Winter,Spring—G. Lamson
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 315. This class is normally taken by juniors. Sophomores considering enrolling should speak to the instructor. 6 credits cr., SS, Fall,Spring—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 twentieth 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. Prerequisite: Economics 110 and 111. 6 credits cr., SS, Spring—Non-Carleton Faculty
ECON 395. Advanced Topics in Industrial Organization With the growing economic importance of information and technology and the many policy issues related to new economy companies like Napster, Microsoft, and E-bay, industrial organization economists have become interested in the economics of networks, the adoption of technology and technological standards, the value of innovation, and the protection of intellectual property. This seminar will explore empirical and theoretical research in each of these areas and will allow students to use the tools of economic analysis to critique policies and practices in government and industry as they relate to these new economy topics. 6 credits cr., SS, Spring—W. P. Wheatley
ECON 395. Advanced Topics in Macro Theory Detailed analyses of aggregate consumption, investment, money-holding and labor market behavior with special attention to each area's micro-foundations and to the empirical verification of theory. These analyses are related to the determination of national income, employment and the price level; to economic growth and business fluctuations; and to optimal public, policy. Prerequisites: Economics 330, 331 and 332 or concurrent enrollment in 332. 6 credits cr., SS, Fall—N. Grawe
ECON 395. Advanced Topics in Sport Economics An in-depth analysis of economic issues involving professional and amateur sports leagues and collegiate athletic programs. A variety of issues will be examined including the structuring of labor contracts, superstar compensation, cartelization and price-fixing, cross-subsidization and antitrust treatment of sports franchises. Prerequisites: Economics 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