Economics studies how scarce resources can be used most effectively to address the pressing needs of society. These needs include: promoting long-term sustainable growth and fighting hunger, joblessness, inequality, and discrimination.
Economics courses provide students with critical thinking skills, and with theoretical and applied tools for studying social problems and proposing informed, evidence-based policies. Many economics majors go on to fulfilling careers in technology, business management, finance, government, and academia.
Economics analyzes the ways in which resources can be most effectively organized to meet the changing goals of a society. Courses in the department combine theoretical and applied economics as a basis for developing and evaluating alternative public policies for entire economies and for the institutions and organizations within an economy. Department courses give a broad and practical perspective for those considering careers in law, government, business, education, journalism or social service; they also meet the needs of students seeking graduate work in economics, business administration, and public affairs. The basic introductory courses, 110 or 111 or both, are prerequisites to advanced courses; they offer a good foundation for further work in economics, but they have also been designed for students who have not yet selected majors and for those in other majors seeking an introduction to the analysis of economic theory and policies. Note: Either course in the principles sequence, Economics 110 or 111, can be taken first. Independent study (291 or 391) for those with special research interests can be taken with any faculty member.
All economics majors are required to successfully complete 75 credits from:
Completion of the core sequence is a prerequisite for Advanced Seminars and the integrative exercise and must occur by the end of the junior year.
We strongly encourage prospective majors to complete all mathematics prerequisites no later than the sophomore year. Math courses may be taken on an elective S/Cr/NC basis but we encourage students to take these on a graded basis. Completion of the core sequence is a prerequisite for Advanced Seminars and the integrative exercise and must occur by the end of the junior year. We encourage students to take Economics 329 in their sophomore spring or junior fall terms. All Advanced Seminars (395) are typically offered only in fall term.
Students considering graduate school in economics should also take Mathematics 120, 210 or 211, 232, 236, 241 and Statistics 250. Courses teaching additional skills such as computer science, advanced rhetoric and analysis of political and social policies are highly recommended.
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.
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.
This course is the second part of a two-term winter break 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.
An ongoing issue in criminal justice in the United States concerns policing practices and their differential impact on racial groups. The recent book Transforming the Police takes an evidence-based approach to examine policing practices. In this course, we will read Transforming the Police and other empirical research for deeper insights into current policing practices and evidence-based reforms. There will be a final paper and students will be expected to lead discussions, which form part of the basis for evaluation of their participation.
Artificial Intelligence, as a practical endeavor, is the attempt to use computers to analyze data in a way that mimics or is superior to human comprehension. When successful, Artificial Intelligence allows the study of large datasets that would not be possible otherwise. These datasets open new possibilities to study social behavior by analyzing large amounts of transactions, social media, satellite images, phone locations, etc. The aim of this course is to introduce students to some of the tools of Artificial Intelligence that are emerging as useful for economists. The focus of the course will be introducing students to the practical application of such tools in the context of a modern programming language such as Python or R. It will center on a series of demonstration exercises using real data. These would provide a starting point for students who might want to use Artificial Intelligence in their own projects. Not offered in 2023-24
The course focuses on the development of the British economy since the inter-war period. The approach integrates economic and historical analysis to discuss the development of the structure of the British economy, economic policy, and the institutions affecting economic performance. Students majoring in economics, political science, and history are particularly encouraged to apply, but the seminar is open to students of all majors.
Economic growth only became an expected part of modern life during the Industrial Revolution. This course will explore the origins and implications of the Industrial Revolution in Britain. Why did this revolution start in Britain? How did it change life for British citizens, and how did the many changes move beyond Britain? The course will use readings, lectures and visits to industrial sites and museums in and around Manchester. Students majoring in economics, political science, and history are particularly encouraged to apply, but the seminar is open to students of all majors.
Among the most important economic institutions in the world today are multinational enterprises. This course will explore the theory and practice of MNEs. Lectures and reading will be supplemented with visits to British multinationals. Students majoring in economics, political science, and history are particularly encouraged to apply, but the seminar is open to students of all majors.
Britain has nurtured some of the most important economists in the world and Cambridge was the intellectual home of the foremost of these, J.M. Keynes. This course will explore the economic theory and social thought of Keynes and the influence of his contemporaries in the Bloomsbury group on post-WWI Britain. Students majoring in economics, political science, and history are particularly encouraged to apply, but the seminar is open to students of all majors.
This course surveys world economic history from Paleolithic times to today. It helps students understand the fundamental forces that drive economic growth and living standards. We address questions such as: How did economic systems function during the ancient and medieval periods? What caused the Industrial Revolution, allowing billions of humans to escape the “Malthusian trap”? Why haven’t all countries experienced economic growth? Finally, what lessons can we learn from the past to help us better understand what the future may hold? The course focuses on long-term trends, but we will also examine short-run cyclical phenomena such as financial crises.
Not offered in 2023-24
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.
Why are some countries rich and others poor? What causes countries to grow? This course develops a general framework of economic growth and development to analyze these questions. We will document the empirical differences in growth and development across countries and study some of the theories developed to explain these differences. This course complements Economics 240.
This course offers an introduction to the economy of Latin America. We will study the region’s policies undertaken during its colonial period and its development strategy during the twentieth century. Topics include import substitution industrialization, the 1980s debt crisis, hyperinflation, dollarization, and international trade agreements. Besides these experiences shared by many countries in Latin America, we will also analyze selected country-specific ones such as the Brazilian stabilization plans and the recent Argentine sovereign debt crisis.
Not offered in 2023-24
In the course of a few decades, China has launched itself from a poor country to a rising world power, at the same time substantially improving living standards and dramatically transforming its production base. What steps did China take to bring about these changes? We will examine China’s domestic economic reforms and development, considering the goals and impacts of various policy measures, along with on-going challenges. Topics to be considered include population, labor, income inequality, land, food production, industry, foreign relations, credit and financial markets, and the environment. While China will be our central focus, students will have some opportunities to compare and contrast with other country experiences.
Not offered in 2023-24
Latin America has the highest level of inequality in the world, undergirded by significant racial, ethnic, and gender inequalities. This course will analyze key gender issues such as violence against women and women’s labor force participation. We will also examine issues affecting indigenous peoples from both a human capital and indigenous rights/development with identity framework. The focus will be on rigorous analysis to understand the problems and design better public policy.
Not offered in 2023-24
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 Vickrey-Clarke-Grove mechanism, the Coase theorem, utilitarianism, Rawlsian ethics, and welfare theorems.
This course uses economic theory and empirical evidence to examine gender differentials in education, marriage, fertility, earnings, labor market participation, occupational choice, and household work. Trends and patterns in gender-based outcomes will be examined across time, across countries, and within socio-economic groups, using empirical evidence from both historical and recent research. The impact of government and firm policies on gender outcomes will also be examined. By the end of the course, students will be able to utilize the most common economic tools in the study of gender inequality, as well as understand their strengths and weaknesses.
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.
Not offered in 2023-24
Joseph Schumpeter, in lamenting the absence of an accepted theory of entrepreneurship, observed that this gap in economics is much like having Hamlet performed with the Prince of Denmark absent. Much has changed since Schumpeter leveled this criticism. Economics has embraced the contributions of entrepreneurs and provided theoretical models explaining their actions. This course explores the foundations of a microeconomic theory of entrepreneurship, investigating the role of entrepreneurs (and intrapreneurs within large organizations) as agents for change. Case studies of business development provide practical illustrations of ways in which entrepreneurs operate and how their efforts contribute to economic progress.
Not offered in 2023-24
This course will focus on the economics of medical care and how health care markets and systems work. We will consider both private health insurance markets and publicly provided social health insurance. The changes which demography, technology and the Affordable Health Care Act are bringing to health care delivery will be examined. Some time will be devoted to understanding the health care systems in other countries. This is a discussion course.
Not offered in 2023-24
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.
This course introduces experimental economics and behavioral economics as two complementary approaches to understanding economic decision making. We will study the use of controlled experiments to test and critique economic theories, as well as how these theories can be improved by introducing psychologically plausible assumptions to our models. We will read a broad survey of experimental and behavioral results, including risk and time preferences, prospect theory, other-regarding preferences, the design of laboratory and field experiments, and biases in decision making.
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.
Not offered in 2023-24
This course studies the relationship between climate change, government policy, and global markets. It explores the historical relationship between economic growth and greenhouse gasses, the cost-benefit analysis of policies aimed at reducing greenhouse gas emissions, and the potential for adaptation to climate change. Through readings, discussions, and case studies, students will gain a deep understanding of the economic implications of climate change and the policies that can be used to mitigate its effects. By the end of the course, students will have developed a critical understanding of the complex relationship between economics and climate change and will be equipped to engage in meaningful discussions and analysis of this pressing global issue.
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.
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.
This course examines scarce water resources as a legal/political/economic factor in the economic development of the western United States, using and combining insights from environmental economics, law and economics, institutional economics, and economic history. Topics include the economic growth of the western economy, surface- and groundwater management, water markets, western water law, Indian water rights, surface- and groundwater pollution, and instream flow protection.
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.
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.
Not offered in 2023-24
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.
Not offered in 2023-24
This course provides a historical perspective on financial crises and highlights their main empirical patterns. This course also introduces economic theories of financial crises, in which leverage, moral hazard, mistaken beliefs, and coordination problems play a central role. We will also discuss some policy instruments used to balance risk exposure, such as deposit insurance, collective action clauses, exchange controls, and foreign reserves.
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.
This course studies dynamics in domestic labor markets in the context of technological advancements. Topics are centered around the impact of different types of technological change, implications on productivity, and job polarization. To gauge the economy’s structural transformation due to adoption of new technologies, we explore rising levels of employment and income inequality, both from a theoretical and empirical perspective. These core subjects are accompanied by discussions on related phenomena, which shaped modern labor markets, such as immigration and institutional changes in form of unionization and minimum wages.
Not offered in 2023-24
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.
Not offered in 2023-24
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.
Not offered in 2023-24
This course provides an introduction to the broad range of financial instruments that are used to fund economic activities. We will explore major asset classes in financial markets, look at how investors make choices when allocating their portfolios, and learn how to price a typical security within each asset class. Topics in this course include asset classification, portfolio theory, debt and equity securities valuation, and derivatives valuation.
This course introduces you to the financial decision-making process of corporations and other institutions. We will analyze financial statements, understand cash flows and how firms choose investment projects, as well as how to raise funding for these investment projects, the related costs of capital, and the trade-off between debt and equity financing. Students will be asked to conduct a real-world business case study in this course.
This course is an introduction to the use of computational methods for the analysis of economic models. After becoming familiar with the programming environment, we will explore the application of computational methods to constrained optimization, econometric estimation, and calibrating, solving, and simulating static and dynamic economic models.
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 econometric theory and practical application through analysis of economic data sets using statistical software. Prior experience with R is strongly encouraged. Topics include two-variable and multiple regression, interval estimation and hypothesis testing, discrete and continuous structural change, parameter restrictions, model construction, experimental design, issues of functional specification, model overfitting and underfitting, heteroscedasticity, autocorrelation, and multicollinearity.
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.
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.
This course examines the many ways in which economics explains family behaviors. Questions explored include: What factors explain marriage, divorce, and alternative family structures? How might we understand fertility decisions and the demographic transition that accompanies industrialization? How does family background (e.g., family size, parent income, or receipt of transfer payments) affect child outcomes? What factors explain the degree to which women have a voice within the family? How might policy reform alter family choices? Special attention is given to methodological issues pertaining to survey data.
This course will include a wide range of topics in Financial Economics and related policy analyses. Specific areas of study depend on student interest but will largely include topics like: financial asset returns; corporate financial policies and the environmental, social, and governance (ESG) strategies of corporations; household financial portfolio choices; business cycle fluctuations, financial sector shocks, and the related macroeconomic policies; developments of financial markets and economic growth. Class time will be a combination of peer-reviewed journal article discussions, application of econometric techniques, individual presentations, and some small group activities to help with research ideas and writings.
Labor economics is the study of work and pay. It encompasses a wide variety of topics, including the nature of the labor contract, human capital investment, fringe benefits, search and hiring, turnover, working conditions, discrimination, union activities, income and wealth distribution, and government policies. The seminar considers labor market activities within the larger context of general household decision-making about family formation, the timing of marriage and childbirth, and the allocation of unpaid household work among family members.
This course is designed to support majors in developing advanced skills in economic research and communication. Through a combination of class discussion, small group work, and/or one-on-one interactions with the professor, majors learn the process of constructing strong, theoretically-grounded arguments through primary research, secondary research, or both. Students will also learn and practice strategies for engaging critically with contemporary scholarship and effective techniques of peer review and the oral presentation of research.
