Economics Course Descriptions
Economics 201
- Introduction to Economic Analysis
Full course for one semester. The course analyzes the important
economic issues and problems arising in the functioning of economic
systems, with particular attention to the private enterprise
economy. These include scarcity of resources, the opportunity cost
of alternative resource allocation choices, the existence and
importance of gains from exchange, the welfare implications of
competition and monopoly, the causes of unemployment and inflation,
the functioning and malfunctioning of monetary and fiscal
institutions, and the requisites for and obstacles to economic
growth. Lecture-conference-laboratory.
Economics 281
- Collectivization and De-collectivization in the People’s Republic of China
Full course for one semester. This class will examine processes of
collectivization and de-collectivization in the People's Republic
of China, focusing on the 1950s and 1980s respectively. We will
examine primarily the agricultural sector and consider the two-way
nature of the transition--from a system of private ownership to
collective--and the subsequent retreat to decentralization. This
approach will facilitate contrasts and comparisons of the
organizational changes experienced by the economy and its
participants during each of the two decades under study. We will
seek to understand the interests of various stakeholders, their
subsequent roles in promoting or resisting the changes, and finally
how various societal groups were affected. Among the materials we
consider will be narrative accounts from various perspectives in
addition to secondary sources that analyze the transition processes
and their outcomes. Conference.
Economics 311
- Survey of Econometric Methods
Full course for one semester. An introduction to applications of
empirical methods in economics. Students are introduced to the
nature and sources of economic data and basic concepts of
statistics and econometrics. Topics include the estimation of
econometric models, hypothesis testing, and forecasting. Emphasis
is placed on the use of these techniques in empirical economic
literature. Prerequisite: Economics 201. Lecture-conference.
Economics 312
- Theory and Practice of Econometrics
Full course for one semester. An introduction to the statistical
methods commonly used in economic research. Classroom development
of theoretical material is combined with extensive hands-on
practice of econometric techniques. Statistical methods discussed
include estimation and inference in simple and multiple linear
regression models, detection and correction of autocorrelation and
heteroskedasticity, time-series models and distributed lags, and
estimation of systems of simultaneous equations. Considerable
emphasis is placed on learning to specify, implement, and evaluate
tests of economic hypotheses. Prerequisites: Economics 201 and
Mathematics 141 or similar introduction to statistics, or consent
of the instructor. Lecture-conference.
Economics 313
- Microeconomic Theory
Full course for one semester. This course provides a thorough
exposition of neoclassical theories of producer and consumer
behavior. Considerable attention is devoted to understanding the
economic concept of efficiency and demonstrating the efficiency of
competitive equilibrium in a general equilibrium framework. The
efficiency of market outcomes under alternative assumptions is also
examined, and some time is devoted to discussing social choice
theory and the limits of the market. Prerequisites: Economics 201
and Mathematics 111, or consent of the instructor.
Lecture-conference.
Economics 314
- Macroeconomic Theory
Full course for one semester. A detailed introduction to modern
theories of economic growth and business cycles. Emphasizes the
derivation of relationships among aggregate variables from
assumptions about the behavior of households and firms. Examines
empirical evidence for and against macroeconomic theories. Lab
session focuses on applying macroeconomic analysis through solving
theoretical problems and performing empirical projects using
macroeconomic data. Prerequisites: Economics 201 and Mathematics
111, or consent of the instructor. Lecture-conference-laboratory.
Economics 315
- Game Theory
Full course for one semester. This course studies strategic
behavior in multiperson games. We study various classes of games,
including static and dynamic games as well as those of complete and
incomplete information. We also consider various solution concepts,
including iterated elimination of dominant strategies, Nash
equilibrium, and evolutionary stability. Numerous refinements of
the Nash equilibrium concept, including sub-game perfect Nash
equilibrium, Bayesian Nash equilibrium, and perfect Bayesian
equilibrium, are also considered. There will be a heavy emphasis on
the application of game theory to the study of the real world. We
apply game theory to the study of competition, the commons,
bargaining, auctions, conventions, institutions, and political
decision-making. Prerequisite: Economics 201, Mathematics 111, or
the equivalent. Lecture-conference. Not offered 2005-06.
Economics 323
- American Economic History
Full course for one semester. This course introduces the student to
the economic history of the United States from colonial times to
the present. Emphasis is placed on understanding the sources of
economic growth and key developments in the historical economy,
especially institutional change. Topics to be covered include
colonial markets for labor and land, technological change, the
growth of big business and regulation, labor and capital market
integration, immigration and internal migration, standards of
living, and the Great Depression. Prerequisite: Economics 201.
Economics 311 or Economics 312 recommended. Conference. Not offered
2005-06.
Economics 331
- History of Economic Thought
Full course for one semester. This course considers the development
of economic thought by focusing on several crucial issues that
economics has addressed throughout history, including resource
scarcity, the sources of economic growth, the role of government in
a market economy, and the effects of international trade. We focus
primarily on the development of economic thought between 1770 and
1940. Reading comes from the works of Smith, Malthus, Ricardo,
Mill, Marx, Marshall, Keynes, and Schumpeter. Prerequisite:
Economics 201. Conference. Not offered 2005-06.
Economics 341
- Monetary and Fiscal Policy
Full course for one semester. A study of classical and contemporary
monetary theory, the structure and operation of private and public
monetary and financial institutions, and the techniques and
objectives of monetary and fiscal policy. Contemporary policy
problems emphasized include maintenance of full employment and
economic growth, prevention of inflation, and economic
stabilization. Prerequisite: Economics 201. Conference. Not offered
2005-06.
Economics 342
- International Macroeconomics
Full course for one semester. This course examines the
macroeconomic linkages between countries. The core of macroeconomic
theory is extended to the open economy. In this context, a number
of issues are addressed, including currency crises, international
policy coordination, and the choice of an exchange rate regime.
Illustrations come from the European monetary union, the recent
Southeast Asian financial crises, the U.S. current account deficit,
and the stabilization policies of Latin America. Prerequisite:
Economics 201. Conference.
Economics 345
- European Economic History
Full course for one semester. This course studies the economic
history of Europe between 1500 and 1950. Emphasis is placed on
understanding the sources of economic growth, especially
technological and institutional progress, and key developments in
the historical economy. Topics to be covered include the pre-modern
European economy, the Industrial Revolution, standards of living,
the demographic revolution, the Gold Standard, migration and
immigration, the Great Depression, and the convergence of growth.
Prerequisite: Economics 201. Economics 311 or 312 recommended.
Conference. Not offered 2005-06.
Economics 348
- Economics of the Public Sector
Full course for one semester. This course considers the role of
government in the economy. We examine the theoretical rationale for
government intervention in the economy and the economic
consequences of such government intervention, with examples coming
primarily from the United States. In addition, the course studies
how taxation affects economic efficiency, income distribution,
capital formation, and microeconomic incentives. Major topics
include environmental regulation, publicly funded education,
welfare, social security, health care, tax reform, and
international public finance. Prerequisite: Economics 201.
Conference.
Economics 351
- Environmental Economics
Full course for one semester. This course presents an economic
analysis of environmental issues and policies. We will examine the
impact of the economy on the environment, the importance of the
environment to the economy, and how policies such as transferable
permits, subsidies, taxes, and regulations affect the environment
and economy. Concepts covered in this course include static
efficiency, equity, property rights, discounting, cost-benefit
analysis, risk and uncertainty, market failure, non-market
valuation techniques, and sustainability. Prerequisite: Economics
201. Conference. Not offered 2005-06.
Economics 352
- Natural Resource Economics
Full course for one semester. This course presents an economic
analysis of renewable and nonrenewable natural resources. Concepts
introduced include static and dynamic efficiency, equity, property
rights, discounting, market failure, non-market valuation, and
sustainability. The course will cover current and proposed policies
for resource management such as transferable quotas, taxes,
subsidies, regulations, and public versus private ownership.
Prerequisite: Economics 201 and Math 111 or consent of instructor.
Conference.
Economics 354
- Economics of Science and Technology
Full course for one semester. An introduction to the economics of
growth, innovation, and technological change in industrialized
market economies. The neoclassical growth model is used as a
theoretical basis for exploring empirical studies measuring the
causes of economic growth. The causes and nature of innovative
activity, as well as its effect on technological progress, are
explored. Issues of appropriability and diffusion of technology are
addressed. Industry and country studies are used to gauge the
effect of technological change on economic performance.
Prerequisite: Economics 201. Conference.
Economics 363
- Economics of Labor
Full course for one semester. Analysis of the labor force and labor
market dynamics in the U.S. and other industrialized countries.
Topics include labor supply, labor demand, wage setting and wage
differentials, unemployment, labor market implications of
government policy (such as welfare reform, affirmative action, and
immigration policy), collective bargaining, and alternative forms
of worker representation. Discussion is focused on the statistical
regularities observed within and across countries with respect to
labor market outcomes, the theoretical models that have been
advanced to explain these regularities, and the implications for
policy of the empirical and theoretical findings. Prerequisite:
Economics 201. Conference. Not offered 2005-06.
Economics 364
- Economics of Population, Gender, and Race
Full course for one semester. This course will consider race and
gender as they influence and are reflected in decisions about
schooling, work, and family. It will also examine trends in
population and consider how and why they might change over time. We
will use microeconomic models of fertility, migration, decisions to
work, and decisions to invest in human capital in an effort to
analyze and explain observed outcomes. Drawing on well-established
literatures in the fields of labor economics and economic
demography to provide frameworks for our discussions, we will
consider the theoretical and empirical findings in light of their
potential contributions to policy. Prerequisite: Economics 201.
Conference. Not offered 2005-06.
Economics 371
- Law and Economics
Full course for one semester. Applications of microeconomic theory
focused on common law and the legal system. Topics include the
effect of the legal system on resource allocation, the
establishment and scope of property rights, allocation of risk and
efficient investments in precaution, product liability, and an
economic analysis of criminal behavior and punishment.
Prerequisite: Economics 201. Conference. Not offered 2005-06.
Economics 382
- Economics of Development
Full course for one semester. The economic problems and policy
concerns of poor countries with applications of economic analysis
to explain and understand observed outcomes. Substantial attention
is paid to the structure and the decisions of households in
developing countries with supplemental focus on the market and
non-market environments under which they operate, including their
access to land, credit, and insurance, as well as their labor
employment opportunities. Additional topics include population
growth and its determinants, the role of technology, inequality and
poverty, structural change, and trade and globalization. Case
studies are used to motivate and illustrate the theories discussed.
Prerequisite: Economics 201. Conference.
Economics 383
- International Trade
Full course for one semester. This course analyzes the causes and
consequences of international trade. The theory of international
trade and the effects of trade policy tools are developed in both
perfect and imperfect competition, with reference to the empirical
evidence. This framework serves as a context for a discussion of
several important issues: the effect of trade on income inequality,
the relationship between trade and the environment, the importance
of the World Trade Organization, strategic trade policy, the role
of trade in developing countries, and the effects of free trade
agreements. Prerequisite: Economics 201. Conference.
Economics 385
- Asian Economies in Transition
Full course for one semester. The course will consider processes of
transition from planned to market-based economic systems. We will
take a sectoral approach, taking note of variation observed across
countries in policy objective, design, implementation, and outcome.
Among the sectors we will consider are industry, agriculture,
banking and finance, foreign trade and investment, and the public
sector. While China and Vietnam, in particular, will offer an
abundance of evidence for us to examine, we will also take into
account the reform experiences of other Asian countries when
relevant source materials are available. Prerequisite: Economics
201. Conference. Not offered 2005-06.
Economics 401
- Contemporary Topics in Economics
One-half course for one semester. A detailed examination of a topic
of current theoretical or policy interest. The course may be
repeated when topics vary, up to a maximum of one unit of credit.
Prerequisite(s) will vary according to topic; they will be
announced in the class schedule. This course may not be used for
Group B or divisional requirements. The topics for 2005-06
are:
Advanced Macroeconomics Consideration of
detailed topics not covered in intermediate economics. Topics
examined include (1) consumption spending: the
permanent-income/life-cycle model, buffer-stock saving, and
precautionary saving; (2) investment spending: q theory, perfect
and imperfect financial markets and internal vs. external finance,
implications of irreversible investment; and (3) unemployment:
search and matching theories, efficiency wage models, sector
shifts, insider/outsider models. We will also discuss applications
of monetary and fiscal policy in modern macro models. Conference.
Prerequisite: Economics 314.
Jobs, Technology, and Trade Investigation
of the causes and consequences of changing patterns of labor
demand. We will seek to understand how technological innovation and
a rising volume of trade influences the structure of labor demand
and the organization of the workplace. Effects on wage levels, wage
inequality, and patterns of employment will be examined. The role
of worker representation, in various forms, will be considered
along with an analysis of factors that contribute to labor
organizing efforts and outcomes. We will focus our attention on the
U.S. labor market although comparative analysis with the
experiences of other industrialized countries will enhance our
understanding.
Economics 421
- Economics of Reed College
Full course for one semester. This course examines the economics of
undergraduate education, focusing on issues of relevance to Reed
College and using Reed as a case study. Elements of institutional
revenue and cost streams are analyzed. Among the specific topics
considered are: measurement of the inputs, outputs, and
productivity of institutions; economic returns from higher
education, especially at selective liberal arts colleges; the
demand for higher education in general and for liberal arts
colleges in particular; the effects of need-based and merit-based
financial aid on demand; fundraising and management of endowment
resources; the market for faculty and models of faculty salaries
and benefits; internal allocation of resources among academic and
administrative departments; funding and maintenance of the physical
plant; and the economics of residence halls, food service, and
other non-academic aspects of higher education. Prerequisite:
Economics 201 and one additional course in economics, or consent of
instructor. Conference.
Economics 454
- Economic Growth
Full course for one semester. Topics include theoretical analysis
of the roles of population growth, capital accumulation, and
technological progress on economic growth; diminishing returns and
neoclassical growth theory; human capital, nondiminishing returns,
externalities, and modern growth theory. We will examine empirical
evidence through growth accounting and cross-country econometric
studies. Prerequisite: Economics 314 or consent of the instructor.
Conference.
Economics 470
- Thesis
Full course for one year.
Economics 481
- Independent Reading
One-half or full course for one semester. Credit in proportion to
work done. Prerequisite: junior or senior standing.
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