Economics

Professor Lynne Pepall, Chair; Industrial organization, microeconomics
Professor Lawrence S. Bacow, Environmental economics
Professor Yannis Ioannides, Max and Herta Neubauer Chair in Economics; Macroeconomics, growth, urban economics, housing
Professor Gilbert E. Metcalf, Public finance, applied microeconomics
Professor George Norman, Cummings Family Chair in Entrepreneurship and Business Economics; Industrial organization, spatial economics, microeconomics
Professor Daniel Richards, Macroeconomics
Professor Enrico Spolaore, Political economics, international economics, macroeconomics, public finance
Associate Professor Marcelo Bianconi, Macroeconomics, international economics
Associate Professor Drusilla Brown, International trade theory and policy
Associate Professor David Dapice, Economic development, macroeconomics, public finance
Associate Professor Thomas Downes, Public finance, economics of education
Associate Professor David Garman, Applied econometrics
Associate Professor Edward Kutsoati, Money and financial markets, applied microeconomics
Associate Professor Linda Datcher Loury, Labor, income distribution
Associate Professor Margaret McMillan, Development
Associate Professor Sharun Mukand, Political economy, international
Associate Professor (part-time) Winifred Rothenberg, Economic history
Associate Professor Jeffrey Zabel, Econometrics, labor economics
Assistant Professor Karen Eggleston, Health, transition, Chinese development
Assistant Professor Henry Sunghyun Kim, Open economy macroeconomics
Assistant Professor Jay P. Shimshack, Environmental and resource economics
Assistant Professor Chih Ming Tan, Macroeconomics, growth
Lecturer John Straub, Public economics, applied econometrics

 

The aim of the department is to provide students with an understanding of economic forces and economic systems, as well as an ability to analyze and appraise current economic issues. These include international economic relations, inflation, business cycles, public finance, labor relations, economic growth and development, planning, environmental problems, and many others. The courses provide techniques of analysis that can be of value in a future career and enable a student to give intelligent consideration to questions of public policy. The department reserves the right to add or drop courses from time to time.

Undergraduate Concentration Requirements
Courses that can be offered to meet the concentration requirement in economics must satisfy the department's policies as outlined in the Economics Department Handbook, available from the department or on the department's Web site at http://ase.tufts.edu/econ/. The handbook contains information on grading standards, acceptability of courses taken at Tufts and elsewhere, and other details of the concentration requirements.

There are two options available for the student who wishes to concentrate in economics. Option I, the major in economics, is less structured and allows more flexibility in the choice of courses. Option II, the major in quantitative economics, is designed for students with an interest in mathematics and statistical methods. This option is best for those who are contemplating graduate study in economics or the more quantitative areas of business and finance.

Each economics major must complete three levels of courses: mathematics courses, normally completed by the end of the sophomore year; core courses, which cover the elements of economic theory and method; and elective courses. Elective courses are selected by the student but must meet criteria summarized below and detailed in the handbook. Normally, students should satisfy the prerequisite prior to enrolling in any core course, and should complete the core courses prior to taking elective courses. A minimum grade of C- is required for all core and elective courses used to satisfy these concentration requirements.

Both Option I and Option II place restrictions on the student's choice of electives; these restrictions are summarized below. 

Option I: Major in Economics

PREREQUISITE
Principles of Economics (Economics 5) or equivalent.

MATHEMATICS COURSE(S)
Mathematics 11, or any higher-level mathematics course approved by the department. Students can waive all or part of this requirement by showing adequate prior preparation as determined by the Departments of Economics or Mathematics (for example, through the Advanced Placement tests). Students may substitute Mathematics 5 and 6 for Mathematics 11. Students who make this substitution and who complete a second concentration must keep in mind that, for purposes of determining the number of courses that can overlap between the economics concentration and the second concentration, the economics concentration requires nine courses.

CORE COURSES
For majors in the classes of 2006 and 2007, three core courses are required: Statistics (Economics 13), Intermediate Microeconomics (Economics 11), Intermediate Macroeconomics (Economics 12). These courses serve as prerequisites for most upper-level economics courses. The mathematically oriented student is advised to take Economics 17 and 18 instead of Economics 11 and 12. In place of Economics 13, students can take Mathematics 162, Civil Engineering 102, or Economics 201. Courses in other Tufts departments are normally not accepted as substitutes for Economics 13.

Beginning with the class of 2008, four core courses are required: Statistics (Economics 13), Intermediate Microeconomics (Economics 11), Intermediate Macroeconomics (Economics 12), and Basic Econometrics (Economics 15).

These courses serve as prerequisites for most upper-level economics courses. The mathematically oriented student is advised to take Economics 17, 18, and 107 instead of Economics 11, 12, and 15. In place of Economics 13, students can take Mathematics 162, Civil Engineering 102, or Economics 201. Courses in other Tufts departments are normally not accepted as substitutes for Economics 13. In place of Economics 15, students can take Economics 107 or Economics 202.

ELECTIVE COURSES
Majors must successfully complete five upper-level economics courses numbered Economics 20 or above. At least three of these five courses must be suitable courses numbered at the 100 level or above. See the handbook for details.

Majors in the classes of 2006 and 2007 may substitute Economics 15 for one of the upper-level economics courses numbered at the 100 level or above.

Option II: Major in Quantitative Economics

PREREQUISITE
Principles of Economics (Economics 5) or equivalent.

BASIC MATHEMATICS COURSES
Mathematics 11 and 12. Students can waive all or part of this requirement by showing adequate prior preparation as determined by the Departments of Economics or Mathematics.

CORE COURSES
Four core economics courses are required: Statistics (Economics 13 or 201, or Mathematics 162, or Civil Engineering 102), Econometrics (Economics 107 or 202), Microeconomics (Economics 17 or 203), and Macroeconomics (Economics 18 or 205). Two core mathematics courses or their equivalent must also be completed: Mathematics 13 and 46, or Economics 105. Students should be aware that Mathematics 17 and 18 can be offered as substitutes for Mathematics 11, 12, and 13. No course offered as a core course can also be used as an elective course.

ELECTIVE COURSES
Quantitative economics majors must complete four additional upper-level economics courses numbered Economics 20 or above. There are three restrictions on choice. First, at least three of these four courses must be suitable courses at the 100 level or higher. Second, at least one of the four elective courses must be a 100-level economics course with a research paper, or a senior thesis credit. Third, at least one elective course must have Economics 17 or 18 or 107 as a prerequisite.

Recommendations for Honors
To receive the department's recommendation for summa or magna cum laude, eligible candidates must demonstrate outstanding intellectual force. Included in the ways the department judges this attribute are: active contribution in classes; superior performance in the core courses of intermediate micro and macro theory and statistics; quality of projects pursued, especially class and seminar papers; and quality of a written thesis and its defense. Students wishing to be reviewed for magna or summa honors must complete at least one economics course in which a research paper or project is required, and which has Economics 11/17, 12/18, or 13 as a prerequisite.

Undergraduate Minor Program
Minor in Economics
The minor in economics is designed for students who have done substantial work in economics but who do not choose to complete all the requirements for a concentration. The structure of the minor is similar to that of the concentration in economics. The basic course provides a foundation for the treatment of theory and method that are used in the core courses, and these core courses are prerequisites for most elective courses. This hierarchy of courses makes it difficult to complete the minor in fewer than three semesters. The five-course requirement for the minor is given below.

BASIC COURSE
One course graded D- or above: 
Principles of Economics (Economics 5) or equivalent

CORE COURSES
Two courses graded C- or above:
Intermediate Microeconomic Theory (Economics 11 or 17 or 203); and either  
Intermediate Macroeconomics (Economics 12 or 18 or 205); or
Statistics (Economics 13 or 201, or Mathematics 162, or Civil Engineering 102)

ELECTIVE COURSES
Minors must successfully complete two elective courses in economics. These two elective courses must include one from Economics 12 or above and one from Economics 100 or above. Exceptions will be made for those who wish to use both Economics 86 and Economics 87 as electives and for those who wish to use Economics 15 as their upper-level (above Economics 100) elective. Courses offered to complete the core may not be counted as electives.

Graduate Program

Master of Arts
Candidates normally will have completed the work required for a baccalaureate degree. Although concentration in economics is not required, some exposure to the subject is preferred, especially in the areas of intermediate theory and statistics. Students lacking this minimum training, but possessing a good background in a related discipline, may be admitted with the understanding that remedial work will be required. All applicants except Tufts undergraduates in arts and sciences must submit the results of the Graduate Record Examination (GRE) with their application.

RESIDENCE
A minimum of eight semester courses is required for the master's degree, two of which may be satisfied by the successful completion of the thesis requirement. (See Thesis Option below.)

PROGRAM OF STUDY
Candidates are expected to take four courses per semester. This includes the statistics/econometrics sequence, the microeconomic theory sequence, and the macroeconomic theory sequence. The department offers several elective seminar classes to round out a student's program. In addition, classes in other graduate programs at Tufts such as those offered by the Fletcher School and the Department of Urban and Environmental Policy and Planning may be used to satisfy the degree requirement pending departmental approval.

MATHEMATICS REQUIREMENT
Students must demonstrate satisfactory proficiency in the application of mathematical techniques to economic analysis. Students may meet this requirement by passing an exemption examination given at the beginning of both the fall and spring semesters. Alternatively, students may enroll in Economics 105 for credit and demonstrate proficiency by earning a grade of B- or better.

THESIS OPTION
If this option is selected, each candidate must present, and successfully defend by oral examination, a thesis that shows competence in independent investigation and that demonstrates critical power as well as ability in expression. Students are urged to keep their master's theses within manageable proportions and should realistically plan to have them completed before the beginning of the second school year.

TEACHING ASSISTANTSHIPS
A limited number of teaching assistantships are available. Application must be made through the department. The department considers all teaching and research experience to be an integral part of its program.

Undergraduate Courses

3 Principles of Accounting. Theory of accounts, analysis, and recording of transactions; classifications of accounts; determination of revenue; interpretation and preparation of income statements and balance sheets. Cannot be counted toward an economics major. Members of the department

5 Principles of Economics. An introduction to the fundamentals of microeconomic and macroeconomic analysis. Topics covered in microeconomics include 1) how markets determine composition and pricing of outputs and inputs, and 2) the behavior of individual consumers and businesses in response to market forces. Topics covered in macroeconomics include 1) the determinants of economic growth, and 2) the effects of fiscal and monetary policy on unemployment, inflation, and capacity utilization. Members of the department

6 Business Law. Legal issues pertaining to business associations and operations. Topics may include business organizations, the law of contracts and agency, the Uniform Commercial Code, antitrust laws, and direct government regulation. Cannot be counted toward an economics major. Members of the department

11 Intermediate Microeconomic Theory. The theory of price determination and resource allocation in a private enterprise economy, analysis of consumer and producer choices, influences of market structure, and the interrelationship of product prices and factor incomes. Required of economics majors who have not completed Economics 17 or 203. In no case may a student receive credit for both Economics 17 and 11. Prerequisites: Economics 5, Mathematics 5 or 11. Members of the department

12 Intermediate Macroeconomic Theory. Analysis of the determinants of national income, basic concepts and accounting, aggregate consumption and investment behavior, and implications for public policy. Required of economics majors who have not completed Economics 18 or 205. In no case may a student receive credit for both Economics 18 and 12. Prerequisites: Economics 5, Mathematics 5 or 11. Members of the department

13 Statistics. An introduction to basic statistical techniques that are used in economic analysis. Major topics include probability, discrete random variables, continuous random variables, sampling distributions, estimation, and hypothesis testing. The course will conclude with some theory and applications of the linear regression model. Required of all economics majors. Prerequisites: Economics 5, Mathematics 5 and 6, or 11. Members of the department

15 Basic Econometrics. Introduction to common techniques and applications of econometrics. Students will gain an intuitive understanding of basic econometric techniques and will learn to apply those techniques to new problems. Data analysis with an econometrics software package and an empirical project using econometric methods. Economics 15 and 107 may not both be taken for credit. Prerequisite: Economics 13. Members of the department

16 Quantitative Intermediate Microeconomic Theory. The theory of price determination and resource allocation in a private enterprise economy; analysis of consumer and producer choices, influences of market structure, and the interrelationship of product prices and factor incomes with mathematical illustrations. Required for all quantitative economics majors who have not completed Economics 203. In no case may a student receive credit for both Economics 17 and 11. Prerequisites: Economics 5, Mathematics 11. Members of the department

17  Review of Quantitative Microeconomic Theory.  Review of Economics 16 for Quantitative Economics majors who have taken Economics 11. ½ credit. Prerequisites: Economics 11, Mathematics 11, and consent.  Brown

18 Quantitative Intermediate Macroeconomic Theory. Analysis of the determinants of national income, basic concepts and accounting, aggregate consumption and investment behavior, and implications for public policy, with mathematical illustrations. Required for all quantitative economics majors who have not completed Economics 205. In no case may a student receive credit for both Economics 18 and 12. Prerequisites: Economics 5, Mathematics 11. Members of the department

19 Review of Quantitative Macroeconomic Theory.  Review of Economics 18 for Quantitative Economics majors who have taken Economics 12. ½ credit. Prerequisites: Economics 12, Mathematics 11, and consent.  Richards

24 Game Theory and Its Application to the Social Sciences. Introduction to game theory and how it is used to understand strategic interactions among individuals, firms, governments, and countries. Topics include credible threats, signaling, principal-agent problems, auctions, arbitration, voting, implications of asymmetric and incomplete information and collusion. Prerequisites: Economics 5 and 13. Members of the department

25 Economics of Health. A survey of current methods of allocating scarce health resources among potential users and the implications of alternative institutional arrangements for economic efficiency and equity. The pricing of doctors' and hospital services will be analyzed, with special attention paid to the increased role of both public and private insurance and to probable effects of recently proposed medical payment plans on the availability and distribution of medical services. Prerequisite: Economics 5. Members of the department

30 Environmental Economics and Policy. An examination of the uses and limitations of economic analysis in dealing with many of the environmental concerns of our society. Public policies concerning the environment will be evaluated as to their ability to meet certain economic criteria. Prerequisite: Economics 5. Members of the department

35 Economic Development. Problems in the growth of underdeveloped economies. Emphasis on quantitative models of economic growth at low levels of income and on the testing of various hypotheses proposed to explain underdevelopment. Consequences of market structures, population growth, externalities, institutions, and political factors for economic development. Prerequisite: Economics 5. Members of the department

36 Macroeconomic Analysis for Development. Macroeconomic policies for developing countries and implications for growth and development. Orthodoxy, heterodoxy, shock therapy, and gradualism. Seignorage, fiscal policy, and debt sustainability. Exchange rate management and capital flows. Political economy and political reform strategies. Country studies and cross-national statistical studies from developing and transitional economies. Prerequisite: Economics 5. McMillan

43  Women in the Labor Market.  Application of the tools of microeconomics to examine the status of women in the labor market. Will include analyses of earnings, poverty, labor force participation, hours of work, and unemployment. While most of the course will focus on the recent past and the present, part of the course will be devoted to how gender differences have changed historically.  Prerequisites: Economics 1 or 5  Loury

60 International Economics. Analysis of the economic effects of trade among nations. Determination and stabilization of exchange rates; regulation of commerce through various commercial policies; the United States' balance of payments; the impact of international trade on price, incomes, and employment in the participating nations; and international agencies and agreements affecting world trade. Custom unions and common markets, world liquidity problems. Not open to students who have taken or are currently taking Economics 161 or its equivalent. Prerequisite: Economics 5. Members of the department

62  Economics of International Migration.  Exploration how economists tackle the questions: Who migrates? Who stays and who returns? Why? Which migrants send money home? What impact do those remittances have on economic development? How can economics help us understand refugee flows and illegal migration? Why do immigrants cluster in neighborhoods like Chinatown or the North End of Boston? Is migration a substitute for or a complement to international trade? The course first develops economic tools for understanding both individuals' decision to migrate across international borders and the resulting migrant flows. It then explores the economic impact and policy implications of migration for home (migrant sending) and host (migrant receiving) countries' economies.  Prerequisite: Economics 1, 5, or consent.  Hardman

63 Economics of the European Union. Introductory examination of the development and functioning of the European Union through economic models. Discussed are European economic integration, customs union, and the single market; free movement of labor and capital; monetary unification; the European Central Bank versus the US Federal Reserve System; monetary versus fiscal policy; regional policy; and social policy. Also examined are external trade policies and economic benefits and costs of joining the union for small versus large countries, the euro as an international currency, the impact of the EU on the developing world and on international income disparities, and the EU’s role relative to other regional trading blocks in the world economy. Prerequisites: Economics 2 or 5. Ioannides

74 Entrepreneurship. Analysis of the economic role and importance of the entrepreneur. The entrepreneur as market-maker and leader. The entrepreneurial role in strategic decision making, organizational design, and management development. Financial planning and venture capital. Prerequisite: Economics 5. Norman

83 Economies of the Middle East. Introductory survey of Middle Eastern economies. The geographic focus will be on the Eastern Arab world - Egypt, the Fertile Crescent, and the Arabian Peninsula - plus Israel and Iran. Because of their historical and cultural ties with the region, Turkey and the countries of North Africa are also considered. Various aspects of the economic realities of the region, such as economic growth and development, the economics of oil, water and food security, population growth and labor mobility, health, education, the role of the state, economic policy reform, and the prospects for global and regional integration. Course is designed to provide both a grasp of the economic development of the Middle East in modern times and a familiarity with present-day economic conditions. Prerequisites: Economics 2 or 5. Spolaore

86 American Economic Development in Historical Perspectives, 1630-1930. (Cross-listed as History 161.) History of the American economy as a consequence of three regional development strategies: plantation production of staple exports (South); import-substitution-industrialization (North); and small-scale commercial agriculture (West). Topics include interregional trade, the retardation of the postbellum South, transformation of Northern manufacturing, and the new macroeconomics of the Great Depression. Prerequisite: Economics 5. Rothenberg

87 Economics of the British Industrial Revolution, 1750-1850. (Cross-listed as History 125.) English property rights, the demographic revolution, the agricultural revolution, the Poor Law, labor market integration, standard of living, domestic and international capital flows, foreign trade, Empire trade (India, Ireland, West Indies), and the relative retardation of France and Holland. Prerequisite: Economics 5. Rothenberg

91 Introductory Selected Topics. Lectures on introductory topics in economics. Topics to be announced. Credit as arranged. Prerequisite: Economics 5, or consent. Members of the department

92 Seminar. Designed to enable students with an Economics 5 level of preparation to explore and to do research on a major topic. Topics vary from year to year. Prerequisite: Economics 5, or consent. Members of the department

Undergraduate and Graduate Courses

100 History of Economic Ideas. This seminar explores the long and controversial history of modern economics, emphasizing the evolution of certain major concepts, such as "value," "cost," "the firm," and "an industry." The course will offer a broader perspective on the process of economic analysis, along with its limits. Prerequisite: Economics 11 or 12. Members of the department

105 Mathematics for Economists. Introduction to mathematical economics. Core topics: calculus, linear algebra, unconstrained and constrained optimization, difference and/or differential equations, and dynamic optimization with emphasis on the use of these techniques in economics. Fall term only. Prerequisites: Economics 11, Mathematics 11 and 12, or consent. Members of the department

107 Econometric Analysis. The study of multiple regression and its applications in economics. The course will focus on the appropriateness of the techniques when the independent variables are measured with error, when the disturbance terms exhibit autocorrelation, or when the independent variables are correlated with the disturbances. The course will conclude with an introduction to simultaneous equation techniques. Economics 15 and 107 may not both be taken for credit. Prerequisite: Economics 13 or equivalent. Members of the department

108 Applications of Econometrics. Synthesis of economic and econometric theory and the application of appropriate econometric methods to real-world problems. Data gathering, model building, estimation, and presentation of results. Topics include wage determination, input demand, investment behavior, advertising, and macroeconomic forecasting. Seminar format. Prerequisites: Economics 11, 12, and 107, or consent. Members of the department

115 Applied Macroeconomics and Forecasting. An introduction to time series and forecasting methods in macroeconomics, business, and finance. Focus on macroeconomic model building and estimation using real-world data such as demands, aggregate investment, sales and market shares, leading economic indicators, and stock prices. Prerequisites: Economics 11, 12, and 13, or consent. Members of the department

116 Economic Growth: Theory and Applications. Theory and experience of economic growth in developed and underdeveloped economies. Models of exogenous growth; recent studies employing techniques of dynamic analysis that emphasize the endogenous nature of growth and the role of factors such as innovation and learning by doing. Applications to the areas of macroeconomics, dynamic trade theory, and economic development. Prerequisite: Economics 11. Members of the department

118  Quantitative Economic Growth.  A rigorous treatment of various theoretical models of economic growth while emphasizing the link between theory and empirics. Are poor countries catching up with rich countries in terms of per capita income? Which policies promote economic development and which do not? Topics include capital accumulation models of growth, the role of technology in sustaining long-run growth, linear regression approaches to uncovering important growth determinants, issues in robustness and specification uncertainty, and the influence of "fundamentals" like institutions, geography, population diversity, and culture on development. Prerequisites: Economics 13 and 18.  Tan

119  Quantitative Games & Information.  The strategic role of information, or “who knows what and when they know it”, underlies many observed economic phenomena. This course applies game theory to understanding how revealing and concealing information can be the basis of strategic behavior in economics. It will cover games of perfect information, imperfect information, and incomplete information, and develop the corresponding solution for each type of game. Examples will include games of asymmetric information that have been applied in economics to a wide range of fields including industrial organization, finance, labor, and development economics. No previous course in game theory is required.  Prerequisites: Economics 13 and 17; or Economics 201 and 203.  Pepall

120 Public Finance. Study of the economics of the public sector. An examination of the role government plays in market economics, and the ways public spending decisions are made. An evaluation of the size of government and the effectiveness of specific programs. Detailed analysis of the methods used to finance governments and of the role various taxes play in influencing the allocation and distribution of resources within an economy. Prerequisites: Economics 5 and 11. Members of the department

122 Topics in Public Finance. Analysis of a current issue regarding government tax or expenditure programs using tools developed in public finance. Topics vary from year to year. Possible areas of study include reforming the federal tax system, designing new tax systems in developing countries, and improving the provision of public education. Prerequisite: Economics 120; Economics 13 recommended. Members of the department

124 State and Local Public Finance. Issues in the provision and financing of public services by state and local governments. Provision of local public services, their adequacy, alternative models of local government decision making, optimal size of local governments, merits of the property tax, who really pays the property tax, alternative revenue sources, suburbs vs. central cities, metropolitan governance, the fiscal crisis of large cities, fiscal federalism, school finance reform, and the impact of tax and expenditure limitation. Prerequisites: Economics 11 or consent. Members of the department

127 Urban Economics. Development of modern urban areas and the application of economic analysis to the problems of location, transportation, housing, racial discrimination, public services, and finances. Prerequisite: Economics 11. Members of the department

128 Economic Analysis of Political Institutions. Analysis of models of rational choice as applied to American political institutions, with an emphasis on Congress. Students will be introduced to abstract theories of collective choice, will apply these models to the analysis of specific political institutions, and will become familiar with empirical tests of these insights. Topics covered include turnout in elections, campaign finance, term limits, the line-item veto, and corporate governance. Prerequisite: Economics 11 or consent. Members of the department

130 Topics in Environmental Economics. Research seminar for students who wish to pursue environmental economics beyond the level of Economics 30. Topics may include the design and administration of environmental excise taxes, the theory and practice of benefit-cost analysis, the economics of renewable and exhaustible resources, and the sustainability of economic growth. Prerequisites: Economics 11 and 30, or consent. Members of the department

136 Topics in Economic Development. Selected major current problems in various developing countries. Students will be asked to utilize and extend the theoretical insights from Economics 35 by applying them in specific cases. Topics will include problems in energy, agriculture, balance of payments, and industrialization. Elements of benefit-cost analysis will also be covered. Prerequisites: Economics 11 and 35; Economics 13 suggested. Members of the department

139 Transition Economics. Analysis of the economics of transition from central planning to a market-based economy. Topics may include characteristics of socialist economics, theories of transition, transformational recession, stabilization, privatization, labor markets, financial development, trade, social safety nets, and institutional reform. Prerequisites: Economics 11. Eggleston

140 Labor Economics. Analysis of competitive labor markets. Examination of firm's choice of workers and workers' choice of amount and quality of labor to provide. Implications for policy areas such as social security and retirement, welfare reform, labor supply and taxes, job training and wage subsidies, labor force participation rates, unemployment, and investment in schooling. Prerequisites: Economics 11 or consent. Members of the department

142 Topics in Noncompetitive Labor Markets. Analysis of wage and employment decisions in labor markets that deviate from the standard competitive model. Effects of imperfect information, labor unions, and discrimination. How implications for policy differ from the usual competitive model predictions. Prerequisites: Economics 140 or 11, and consent. Members of the department

144 Income Inequality, Poverty, and Economic Justice. Summary measures of income distribution and their implicit value judgments. The link between trends in relative inequality in incomes and differences in wages, earnings, and labor supply. The impact of personal characteristics, institutions, and macroeconomic trends on earnings. Discussion of the pervasiveness of poverty, its causes, and public policy measures for its alleviation. Economic and philosophical aspects of an equitable and just distribution of income. Prerequisite: Economics 11. Members of the department

145 Economics of Higher Education. Advanced seminar exploring economic research on some provocative current policy questions in U.S. higher education. Topics may include the function of colleges, public subsidies, fairness of college admissions, financial aid as a benefit of the college or the student, whether it is worth paying more to attend a selective college, the influence of competition for prestige on university behavior, and whether college sports teams are consistent with educational values. Most class meetings involve student-led discussion of articles from books, journals, and the popular press. Class attendance and active participation required. Required research paper on a topic related to the class readings. Paper will be integrated into the course, with periodic deadlines for portions of the paper and class discussion of the ongoing research. Prerequisites: Economics 11 or 17 and Economics 13. Garman

150 Financial Economics. Application of economic theory and statistics to the analyses of corporate investment and financing decisions and the equilibrium prices of financial instruments. Topics include the time value of money, structure of interest rates, evaluation of investment projects, the advantage of portfolio diversification, asset pricing models, corporate capital structure, dividend policy, and the valuation of options and futures. Prerequisites: Economics 11, 12, and 13. Members of the department

151 Monetary Economics. Overview of the U.S. financial system with an emphasis on basic monetary theory, the structure and regulatory environment of financial institutions, the conduct of monetary policy, and international linkages. Prerequisite: Economics 12. Members of the department

152 Topics in Money and Finance. Research seminar for students who wish to pursue monetary and financial issues beyond the levels of Economics 150. A lengthy research paper is required, and active participation in class is expected. Topics covered include the level and structure of interest rates, structure of financial flows in the U.S., portfolio theory and decision making under uncertainty, and public policy issues in security markets. Prerequisites: Economics 11, 12, 13, and 150 or 151. Members of the department

154 Uncertainty Methods in Economics and Finance. New and recent developments in uncertainty methods applied to economic theory and financial decision making under symmetric and asymmetric information. Topics include the structure of financial markets, insurance, risk-sharing, and asset pricing in static and dynamic economic contexts. Prerequisites: Economics 11 and 13. Members of the department

161 International Trade. Historical development of the theory of international specialization and exchange. Subsequent topics include trade and imperfect competition, trade policy, and economic warfare. International factor movements, international trading system, and policy tools of trade intervention and their welfare implications. Prerequisite: Economics 11. Members of the department

162 International Finance. Macroeconomic and monetary aspects of international economics. Topics include foreign exchange markets, income and price determination under flexible and fixed exchange rates, theories of the exchange rate and of the balance of payments, stabilization policy in the international economy, international capital movements, and the institutional arrangements of the international monetary system. Prerequisite: Economics 12. Members of the department

164 Topics in International Finance. Research seminar for students who wish to pursue international finance beyond the level of Economics 162. Topics include basics of multinational corporate finance, exchange rate hedging using options and forwards, monetary and fiscal policies in open economies, global capital markets, international business cycles, emerging market financial crisis, and regional economic issues. Prerequisite: Economics 162. Members of the department

166 Topics in the Macroeconomics of Regions and Nations. Economic geography and its interaction with international trade; economic integration; spatial distribution of economic activity with particular reference to urban/regional structure. Macroeconomic performance and the spatial structure of the economy. Income distribution and macroeconomics. Strategic aspects of economic interdependence. Economic geography and self-organization. Prerequisites: Economics 11, 12, and one course in international economics; or consent. Members of the department

170 Industrial Organization. Examination of the strategic interaction of firms in the marketplace and how this affects the way markets are organized. Different models of oligopoly are studied in order to understand how firms strategically set price, choose output, choose product quality, invest in capacity, and engage in R&D. Use of government policy and antitrust laws to influence the ways in which firms compete with each other. Prerequisite: Economics 11. Members of the department

171 Topics in Industrial Organization. New and recent developments in industrial organization. The theory of the firm and its organization in the context of transaction costs, agency costs, and property rights. Vertical integration, vertical restrictions, tie-in sales, and informational topics such as advertising and disclosure. Prerequisites: Economics 11 and 170. Members of the department

175 Economics of Management and Strategy. Application of economic reasoning to strategic aspects of management decision making. The centrality of game theory in a firm's strategic choices; bargaining and negotiation; the determination of the vertical and horizontal boundaries of the firm; strategic commitment; dynamic pricing rivalry; entry and exit; the origins, creation, and maintenance of competitive advantage. Prerequisite: Economics 11 or consent. Members of the department

176 Multinational Enterprises. The turn of the 21st century has seen a dramatic increase in foreign direct investment, with investment flows substantially outstripping export and import flows in most years for most developed countries. This has had an equally dramatic impact on the means by which companies conduct their international business. This advanced seminar course develops a systematic analysis of the motives for foreign direct investment, which creates multinational enterprises. The theoretical part of the course builds a series of models that shed light on the primary forces that motivate firms to switch from exporting to multinational production. Also investigated are some of the potential welfare impacts of the decision to become a multinational enterprise, on both host and home countries, and some of the empirical issues that arise when we try to explain patterns of international production and attempt to quantify the effects of multinationals on home and host nations. Prerequisites: Economics 11 and 13. A previous game theory and/or international economics course would also be useful. Norman

179 Law and Economics. An economic analysis of the common, legislated, and constitutional law and the process of each with primary emphasis on the impact of legal rights and duties. Topics chosen from products liability, malpractice, tort, contracts, property, financial, family, discrimination, environment, corporate, antitrust, employment, and regulatory vs. common law remedies for the abuse of market power. Prerequisites: Economics 11 and 13, or consent. Members of the department

183 Topics in International Political Economy. Advanced seminar on current economic and political developments in the global arena. Topics may include the political underpinnings of the globalization of international financial markets, factors underpinning the political backlash against globalization, the relevance of international organizations such as the UN and the WTO, the role of the military in international economic and political affairs, and the relationship between globalization and development. The course will require a research paper. Prerequisites: Economics 11 and 12. Mukand

184 The Number and Size of Nations. The number of sovereign states has increased dramatically from 74 in 1945 to almost 200. They come in all sizes with China at 1.2 billion people and Tuvalu, the smallest country with a seat at the United Nations, at less than 11,000. This advanced seminar examines what determines the number and size of nations and how borders change over time, how a country's size matters for economic prosperity, and how the formation and breakup of nations depend on democratization, economic integration, international conflicts and wars. These questions are addressed using the tools of economic analysis, while also taking into account insights from other disciplines, such as history and political science. Prerequisites: Economics 11 or 17 and Economics 12 or 18. Spolaore

185 Quantitative International Finance. Quantitative analysis of theoretical and empirical models of international finance. Topics include balance of payments and exchange rate determination models, foreign exchange market efficiency, exchange rate regimes, international capital flows, and emerging market financial crisis. Prerequisite: Economics 18 or 205; Economics 105 recommended. Members of the department

190 Independent Study.  Independent reading or research on special topics in economics. Approval and supervision of a faculty member is required. Credit as arranged. Prerequisite: Economics 11, 12, or 13. Members of the department

191 Intermediate Selected Topics. Lectures on intermediate topics in economics. Topics to be announced. Credit as arranged. Prerequisite: Economics 11, 12 or 13. Members of the department

192 Advanced Seminar. Designed to enable advanced students with significant training in economics to explore and do research on a major topic. Topic varies from year to year. Prerequisite: Economics 11, 12, or 13. Members of the department

194 Senior Thesis. Designed for students who want to write a senior thesis, but do not want to be a part of the Thesis Honors Program. Approval of a faculty member is required. Variable credit. Members of the department

195, 196 Senior Honors. Thesis course for thesis honors candidates; see Thesis Honors Program for details. Open to seniors. Normally two courses. Prerequisite: consent. Members of the department

197 Senior Thesis Research Seminar. A year-long, one-credit, pass-fail course designed to help seniors writing senior theses or honors theses plan and execute their research and write their thesis. Faculty members and past thesis writers will meet with the seminar and discuss various aspects of the research process. Students in the seminar are also expected to present their work and provide feedback to their fellow seminar participants. ½ credit course per semester.  Members of the department

Graduate Courses

201 Statistics. Statistical inference, including elements of probability theory, hypothesis testing, and multivariate analysis. Fall. Prerequisite: consent. Members of the department

202 Econometrics. Parameter estimation techniques for linear single equation and simultaneous equations and their application to the study of economic behavior. Spring. Prerequisite: consent. Members of the department

203 Microeconomic Theory I. Analysis of consumer behavior, the theory of production, equilibrium of the firm and the industry, market structure, and the pricing of the factors of production. Fall. Prerequisite: consent. Members of the department

204 Microeconomic Theory II. Advanced topics in microeconomic theory, such as equilibrium analysis and introduction to welfare economics. Spring. Prerequisite: consent. Members of the department

205 Macroeconomic Theory I. Analysis of income and unemployment theory; comparison of classical, Keynesian, and post-Keynesian systems; and theories of inflation. Fall. Prerequisite: consent. Members of the department

206 Macroeconomic Theory II. Advanced topics in macroeconomic theory, such as business cycles, growth models, and conditions for stability. Spring. Prerequisite: consent. Members of the department

292 Graduate Seminar in Economic Theory. Topics include advanced analysis in such areas as risk and uncertain asystematic information, dynamic general equilibrium, stochastic growth, and experimental economics. (Appropriate for graduate elective.) Members of the department

293, 294 Special Topics. Guided individual study of an approved topic. Variable credit. Members of the department

295, 296 Thesis. Guided research on a topic that has been approved as a suitable subject for a master's thesis. Two courses. Members of the department

297, 298 Graduate Research. Guided research on a topic suitable for a doctoral dissertation. Variable credit. Members of the department

401PT Master's Continuation, Part-time.

402FT Master's Continuation, Full-time.