Course Catalogue

Below is the full list of courses for the Economics Department.

ECON 1018 b. Art of the Deal: Commerce and Culture

Non-Standard Rotation

Explores the economics of culture, including the analysis of markets for art, music, literature, and movies. If culture is priceless, then why do artists starve while providers of pet food make billions? Why are paintings by dead artists generally worth more than paintings by living artists? Could music piracy on the information superhighway benefit society? Can Tom Hanks turn a terrible movie into a contender at the box office? Students are not required to have any prior knowledge of economics, and will not be allowed to argue that baseball comprises culture.

ECON 1027 b. Women, Work, and Family

Non-Standard Rotation

Explores the revolutionary changes in fertility, marriage, divorce, educational attainment, and employment affecting all aspects of women’s lives that occurred over the course of the twentieth century (and into today). From Lillian Gilbreth (the mother in the book, “Cheaper by the Dozen,” who was one of the first working female engineers holding a PhD) to Rosie the Riveter; from June Cleaver to Murphy Brown; from Opting Out to Leaning In, these changes are all around. Focuses mainly on women in developed countries. Students are not required to have any prior knowledge of economics. (Same as GSWS 1011)

ECON 1050 b-MCSR. Intro Micro and Quantitative

Non-Standard Rotation

A quantitative reasoning supported introduction to economic analysis and institutions, with special emphasis on the allocation of resources through markets. Covers the same content as Economics 1101 with added instruction in the quantitative skills used in modern microeconomics, providing a firm foundation for further coursework in economics. Students desiring a comprehensive introduction to economic reasoning should take both this course (or Economics 1101) and 1102 (102). To ensure proper placement, students must fill out economics department placement form and must be recommended for placement in Economics 1050. Not open to students have taken Economics 1101.

PREREQUISITE: MATH 1050 or Placement in ECON 1050

ECON 1101 b-MCSR. Principles of Microeconomics

Every Semester

An introduction to economic analysis and institutions, with special emphasis on the allocation of resources through markets. The theory of demand, supply, cost, and market structure is developed and then applied to problems in antitrust policy, environmental quality, energy, education, health, the role of the corporation in society, income distribution, and poverty. Students desiring a comprehensive introduction to economic reasoning should take both Economics 1101 and 1102. For proper placement students should fill out the economics placement request form and must be recommended for placement in Economics 1101. Not open to students who have taken Economics 1050.

PREREQUISITE: MATH 1050 or Placement in ECON 1101

ECON 1102 b-MCSR. Principles of Macroeconomics

Every Semester

An introduction to economic analysis and institutions, with special emphasis on determinants of the level of national income, prices, and employment. Current problems of inflation and unemployment are explored with the aid of such analysis, and alternative views of the effectiveness of fiscal, monetary, and other governmental policies are analyzed. Attention is given to the sources and consequences of economic growth and to the nature and significance of international linkages through goods and capital markets.

PREREQUISITE: ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level

ECON 1201 b. Financial Accounting

Non-Standard Rotation

Accounting provides information to policy-makers, regulators, decision-makers, and investors to facilitate the allocation of resources in society. Develops skills necessary to evaluate an enterprise’s financial position and activities through three primary goals: 1) understanding the concepts and measurements underlying financial statements, 2) developing the skills necessary to analyze financial statements, and 3) understanding the choices enterprises make in reporting the results of their activities. Taught in a blended format involving regular online instruction by faculty from the Tuck School of Business at Dartmouth with on-campus instruction and facilitation by a Bowdoin faculty member.

ECON 2001 b. Economic Policy

Every Year

Economic analysis can bring clarity to confused and contentious policy debates. Focuses on using economic analysis to anticipate the potential consequences of implementing major policy proposals, including those relating to globalization, international trade and finance, inequality of income and wealth, economic growth and development, the financial system, the government budget and debt, price stability and employment, and the environment.

PREREQUISITE: ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level

ECON 2209 b. Financial Markets

Non-Standard Rotation

Introduction to financial economics. Topics include the functions and structure of the financial system; asset pricing theory with application to bonds, stocks, and derivatives; the efficient markets hypothesis and behavioral finance; risk management; relationship between financial system performance and the macroeconomy. Not open to students who have taken Economics 2301, 3301, 3302.

PREREQUISITE: Two of:|| either ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ECON 1102 or Placement in earned ECON 1102 or Placement in ECON 2000 Level

ECON 2210 b. Economics of the Public Sector

Non-Standard Rotation

Theoretical and applied evaluation of government activities and the role of government in the economy. Topics include public goods, public choice, income redistribution, benefit-cost analysis, health care, social security, and incidence and behavioral effects of taxation. Not open to students who have credit for Economics 3510.

PREREQUISITE: Two of:|| either ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ECON 1102 or Placement in earned ECON 1102 or Placement in ECON 2000 Level

ECON 2212 b-MCSR. Labor and Human Resource Econ

Non-Standard Rotation

A study of labor market supply and demand, with special emphasis on human resource policies, human capital formation, and wage inequality.

PREREQUISITE: ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level

ECON 2213 b. History of Economic Thought

Non-Standard Rotation

A historical study of insights and methods of inquiry into the functions of markets and the role of government in shaping them. Readings include the original works of economic thinkers from the eighteenth to twentieth centuries, including Adam Smith, David Ricardo, Henry Carey, Karl Marx, Henry George, Thorstein Veblen, and John Maynard Keynes, among others. Different historiographical approaches are employed, including examination of the problems motivating past thinkers as well as the relevance of their ideas to modern economics.

PREREQUISITE: Two of:|| either ECON 1050 or ECON 1101 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ECON 1102 or Placement in earned ECON 1102 or Placement in ECON 2000 Level

ECON 2214 b-MCSR. Topics in Public Finance

Non-Standard Rotation

Provides an overview of some of the major issues confronting public finance. Topics may include environmental policy, education, poverty, income inequality, taxation, crime, corruption, and public health, with examples drawn from the US as well as other industrialized and developing countries. Students read and critically evaluate journal articles that present empirical evidence on important public policy questions providing an opportunity to understand economics as a social science and to apply economic theory to particular social problems. Using statistical methodology and empirical evidence, students learn how to build statistical models and interpret results from reading the tables.

PREREQUISITE: ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level

ECON 2218 b-MCSR. Environmental Econ and Policy

Non-Standard Rotation

An exploration of environmental degradation and public policy responses in industrial economies. Market failures, property rights, and materialistic values are investigated as causes of pollution and deteriorating ecosystem functions. Guidelines for equitable and cost-effective environmental policy are explored, with an emphasis on the roles and limitations of cost-benefit analysis and techniques for estimating non- monetary values. Three core themes are the transition from “command and control” to incentive-based policies; the evolution from piecemeal regulation to comprehensive “green plans” (as in the Netherlands); and the connections among air pollution, energy systems, and global warming. (Same as ENVS 2302)

PREREQUISITE: ECON 1050 or ECON 1101 or Placement in ECON 1102 or Placement in earned ECON 1101 or Placement in ECON 2000 Level

ECON 2219 b-MCSR. Climate Change and Institutions

Every Other Fall

How do various public and private institutions, including governments, firms, and nonprofits, incorporate climate change into their decision- making? Explores how and why institutions set greenhouse gas mitigation goals, how they propose to achieve their goals, and the larger economic and social implications of institutional climate action plans. Further, questions how institutions at all levels are adapting or planning to adapt to climate change. Critiques the efficacy and efficiency of climate action plans. Topics explored include renewable energy credit and offset markets; energy markets; carbon markets and taxes; financing of climate action plans; incentivizing energy efficiency and other climate-friendly practices; technology adoption; the economics of technological change; employee, student, and citizen activism; shareholder activism; and corporate social responsibility. Introduction to basic economic modeling by working with graphs, tables, and schematics. Problem sets and written assignments used to assess learning. For a final project, students write a climate action plan for an institution of their choice. (Same as ENVS 2351)

PREREQUISITE: Two of:|| either ECON 1050 or ECON 1101 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ENVS 1101

ECON 2221 b-MCSR, ESD. Marxian Political Economy

Non-Standard Rotation

An alternative (heterodox) analysis of a capitalist market economy rooted in Marx’s methodological framework, which focuses on the interconnected role played by market relations, class/power relations, exploitation and internal tendencies towards growth, crisis, and qualitative change. Students are introduced to the Marxian method and economic theory through a reading of Volume I of Capital. Subsequently, the Marxian framework is applied to analyze the modern capitalist economy with an emphasis on the secular and cyclical instability of the economy, changing institutional structures and their ability to promote growth, labor market issues, globalization, and the decline of the Soviet Union.

PREREQUISITE: ECON 1050 or ECON 1100 or ECON 1101 or Placement in earned ECON 1101

ECON 2226 b-IP. Political Econ Pan-Americanism

Examines programs for economic and political integration of the Americas from the early nineteenth century to the present. Surveys the material and ideological motives for Pan-Americanism from the Congress of Panama (1826) to the Organization of American States (1948), the draft of a Free Trade Area of the Americas (2001), and beyond. Different forms of integration are evaluated in light of historical consequences and economic ideas. (Same as LAS 2626)

PREREQUISITE: ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level

ECON 2227 b-MCSR, IP. HR and Economic Development

Non-Standard Rotation

An analysis of human resource issues in the context of developing countries. Topics include the composition of the labor force by age and gender, productivity of the labor force, unemployment and informal sector employment, child labor and the health and schooling of children, and the effects of structural adjustment policies and other policy interventions on the development and utilization of human resources. Examples from selected African, Asian, and Latin American countries are integrated throughout and the interaction of sociocultural environments with economic forces is considered.

ECON 2228 b-MCSR. Natural Resource Econ and Policy

Non-Standard Rotation

A study of the economic issues surrounding the existence and use of renewable natural resources (e.g., forestry/land use, fisheries, water, ecosystems, and the effectiveness of antibiotics) and exhaustible resources (such as minerals, fossil fuels, and old growth forest). A basic framework is first developed for determining economically efficient use of resources over time, then extended to consider objectives other than efficiency, as well as the distinguishing biological, ecological, physical, political, and social attributes of each resource. Uncertainty, common property, and various regulatory instruments are discussed, as well as alternatives to government intervention and/or privatization. (Same as ENVS 2303)

PREREQUISITE: ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level

ECON 2239 b-IP. Topics on Asian Economics

Non-Standard Rotation

A study of the similarities and differences in growth experience and the level of economic output per person in Asian countries. Explores possible causes of differences in economic paths, with a focus on several important economies, including China and Japan. Also discusses the relationship between the Asian economies and the United States economy. (Same as ASNS 2830)

PREREQUISITE: Two of:|| either ECON 1050 or ECON 1101 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ECON 1102 or Placement in earned ECON 1102 or Placement in ECON 2000 Level

ECON 2244 b. The Economics of Sports

Non-Standard Rotation

An analysis of the economic issues in professional and amateur sports. Topics include the industrial organization of sports leagues (monopoly, antitrust, price discrimination, competitive balance), the public financing of sports, the labor economics of sports including discrimination, sports in the non-profit sector, in- game strategy, performance metrics, and behavioral decision theory. Uses the tools of microeconomic analysis including game theory and basic econometric analysis. Emerging issues in sports analysis may be explored, such as the impact of youth participation in sports on household economics, in-game referee bias, and the role of luck in sport outcomes.

PREREQUISITES: ECON 1050 or ECON 1101 or Placement in ECON 1102 or Placement in earned ECON 1101

ECON 2301 b-MCSR. Financial Economics

Every Fall

Provides an overview of issues in the economics of finance. Explores how financial markets are used to manage risk and allocate scarce resources over time and space. Topics covered may include: bond pricing, time and risk preferences, the capital asset pricing model, the efficient markets hypothesis, anomalies and proposed explanations in asset pricing, the Modigliani-Miller theorem, and agency issues within firms. Presentation of material will be grounded in economic theory. Mathematics 1600 {161} is recommended.

PREREQUISITE: Two of:|| ECON 1101 or Placement in earned ECON 1101|| and ECON 1102 or Placement in earned ECON 1102

ECON 2303 b. Financial Crises

Non-Standard Rotation

Presents a historical and theoretical overview of financial crises. Covers models of exchange-rate crises, sovereign debt crises, and banking crises. A particular focus on the financial crisis of 2007-09, with close readings of contemporary accounts on the origins and propagation mechanisms linking this crisis to the Great Recession.

PREREQUISITE: Two of:|| either ECON 1050 or ECON 1101 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ECON 1102 or Placement in earned ECON 1102 or Placement in ECON 2000 Level

ECON 2304 b-MCSR, IP. Economics of the EU

Non-Standard Rotation

Focuses on the core economic aspects of the EU integration while taking into account historical and political influences. Major contemporary macroeconomic issues like monetary unification, fiscal policy in a monetary union, theory of customs unions, labor markets and migration, and financial markets and EU crises analyzed through theoretical approaches and empirical evidence.

PREREQUISITE: Two of:|| either ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ECON 1102 or Placement in earned ECON 1102 or Placement in ECON 2000 Level

ECON 2323 b-MCSR. The Economics of Information

Non-Standard Rotation

Many standard economic models assume perfect and complete information. The economics of information explores how economic phenomena can be better understood by relaxing this assumption. Topics include decision-making under risk, adverse selection, moral hazard, information processing/belief updating, communication, the efficient market hypothesis, firm competition and reputation, advertising and media. Develops and uses selected tools from probability theory and game theory.

PREREQUISITE: ECON 1101 or ECON 1050 or Placement in earned ECON 1101 or Placement in ECON 2000 Level

ECON 2380 b-MCSR. Economic History of American Enterprise

Non-Standard Rotation

Considers the history of American enterprise over the past two centuries. First examines key issues in the economics of the firm, entrepreneurship, and innovation during the nineteenth century (the period of the second industrial revolution). Then addresses these issues from a more recent perspective (the so-called third industrial revolution). Assesses what lessons for the twenty-first century can be learned from an examination of the development of enterprise since the nineteenth century; and analyzes the extent to which today’s “New Economy” raises novel questions for economic theory and its applications.

PREREQUISITES: Two of:|| either ECON 1050 or ECON 1101 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ECON 1102 or Placement in earned ECON 1102 or Placement in ECON 2000 Level

ECON 2555 b-MCSR. Microeconomics

Every Semester

An intermediate-level study of contemporary microeconomic theory. Analysis of the theory of resource allocation and distribution, with major emphasis on systems of markets and prices as a social mechanism for making resource allocation decisions. Topics include the theory of individual choice and demand, the theory of the firm, market equilibrium under competition and monopoly, general equilibrium theory, and welfare economics.

PREREQUISITES: Three of:|| ECON 1050 or either ECON 1101 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ECON 1102 or Placement in earned ECON 1102 or Placement in ECON 2000 Level|| and MATH 1600 or higher or Placement in MATH 1700 (M) or Placement in MATH 1750 (M) or Placement in MATH 1800 (M) or Placement in 2000 2020 2206 M

ECON 2556 b-MCSR. Macroeconomics

Every Semester

An intermediate-level study of contemporary national income, employment, and inflation theory. Consumption, investment, government receipts, government expenditures, money, and interest rates are examined for their determinants, interrelationships, and role in determining the level of aggregate economic activity. Policy implications are drawn from the analysis.

PREREQUISITE: ECON 2555

ECON 2557 b-MCSR. Economic Statistics

Every Semester

An introduction to the data and statistical methods used in economics. A review of the systems that generate economic data and the accuracy of such data is followed by an examination of the statistical methods used in testing the hypotheses of economic theory, both micro- and macro-. Probability, random variables and their distributions, methods of estimating parameters, hypothesis testing, regression, and correlation are covered. The application of multiple regression to economic problems is stressed. Students who have taken Mathematics 2606 (265) are encouraged to take Economics 3516 (316) instead of this course.

PREREQUISITE: Three of:|| ECON 1050 or either ECON 1101 or Placement in earned ECON 1101 or Placement in ECON 2000 Level|| and ECON 1102 or Placement in earned ECON 1102 or Placement in ECON 2000 Level|| and MATH 1600 or higher or Placement in MATH 1700 (M) or Placement in MATH 1750 (M) or Placement in MATH 1800 (M) or Placement in 2000 2020 2206 M

ECON 2777 MCSR. Chinese Rural-Urban Migration

Non-Standard Rotation

Highlights applied research methods in microeconomics. Students work throughout the semester in research teams to analyze data from Chinese rural women on their migration and/or the migration of their husbands. While topics of Chinese economic life and economic models of migration are studied, primarily focuses on methods: how applied researchers work with data to analyze a set of questions. Elementary statistics is a prerequisite. Statistical techniques beyond the elementary level are taught. (Same as ASNS 2090 and GWS 2277)

PREREQUISITES: Two of:|| ECON 1050 or either ECON 1101 or Placement in earned ECON 1101|| and ECON 2557 or either MATH 1200 or MATH 2606 or PSYC 2520 or SOC 2010

ECON 2970 b. Intermediate Independent Study

ECON 2999 b. Intermediate Collaborative Study

ECON. 3301 b. Financial Economics

Non-Standard Rotation

An introduction to the economics of finance using the tools of intermediate microeconomic theory. Explores the economic role of financial markets in determining the price of risk, allocating capital across space, and moving economic value through time. Particular emphasis on questions of market efficiency and social usefulness. Topics likely to include choice under uncertainty, the time value of money, portfolio optimization, the Capital Asset Pricing Model, the Efficient Market Hypothesis, options and derivatives, and the Modigliani- Miller Theorem. Not open to students with credit for Economics 2301 taken in the fall 2014 or fall 2015 semesters.

PREREQUISITE: ECON 2555

ECON 3302 b. Topics in Finance

Every Spring

Provides hands-on practice of financial theory using financial modeling. Addresses real-life financial problems using Excel and VBA. Topics include arbitrage pricing theory, capital asset pricing model, portfolio selection, fixed income securities, and option pricing. Builds on materials covered in Economics 2301.

PREREQUISITE: Two of:|| either ECON 2301 or ECON 3301 || and ECON 2555

ECON 3305 b. Game Theory and Strategic Behavior

Non-Standard Rotation

A rigorous introduction to mathematical game theory, the theory of strategic behavior. Topics include dominance, rationalinability, pure and mixed strategy Nash equilibrium, sequential and repeated games, subgame perfect equilibrium, bargaining, and games of incomplete information. Applications to business, politics, and sports discussed.

PREREQUISTE: ECON 2555

ECON 3350 b. Mathematical Economics

Non-Standard Rotation

A survey of some of the mathematical techniques used to conduct economic analyses. Topics include utility maximization under uncertainty; solving constrained optimization problems with mathematical programming; optimal control theory; solving complex equations and systems of equations with numerical methods; dynamic programming; and general equilibrium analysis. Students learn to solve problems with MATLAB and other similar programming and statistical software.

PREREQUISITE: Two of:|| ECON 2555 || and MATH 1800

ECON 3508 b. International Trade

Non-Standard Rotation

Seminar. Offers a theoretical and empirical analysis of international trade. Addresses the globalization debate; and the relation between trade, growth, and productivity. Particular attention is given to the standard models of trade: the Ricardian model, the Heckscher- Ohlin model, the specific factors model, the monopolistic competition model, and the model of heterogeneous firms and trade. Data analysis is used in order to evaluate the success or shortcomings of the theoretical models.

ECON 3509 b. International Finance

Non-Standard Rotation

Seminar. Surveys a number of topics in international finance and international macroeconomics, including balance of payments, exchange rate determination, the Mundell-Fleming model of output and exchange rate, exchange rate regimes, international capital flows, and international financial crises. Involves data analysis to empirically evaluate the theoretical models. Also provides a special focus on Asia by discussing issues such as Asia's role in the global imbalances, China's exchange rate regime, and the currency carry trade associated with the Japanese Yen.

PREREQUISITE: Two of:|| ECON 2556 || and ECON 2557

ECON 3511 b. Evaluation of Public Programs

Non-Standard Rotation

Seminar. How to measure the effectiveness of public policy programs. Covers the basics of cost-benefit analysis and modern empirical methods used to measure and evaluate impacts of public programs. Examines the strengths and limitations of randomized control experiments, natural experiments, and non- experimental observational designs with applications to education, health, public assistance, and labor market policies.

PREREQUISITE: Two of:|| ECON 2555 || and ECON 2557 or MATH 2606

ECON 3516 b. Econometrics

Every Fall

Seminar. A study of the mathematical formulation of economic models and the statistical methods of testing them. A detailed examination of the general linear regression model, its assumptions, and its extensions. Applications to both micro- and macroeconomics are considered. Though most of the course deals with single-equation models, an introduction to the estimation of systems of equations is included. An empirical research paper is required.

PREREQUISITE: Two of:|| ECON 2557 or MATH 2606 || and MATH 1600 or higher or Placement in MATH 1700 (M) or Placement in MATH 1750 (M) or Placement in MATH 1800 (M) or Placement in 2000 2020 2206 M

ECON 3519 b. Economics of Development

Non-Standard Rotation

Seminar. Theoretical and empirical analysis of selected microeconomic issues within the context of developing countries. Has a dual focus on modeling household decisions and on the effects of government policy and intervention on household behavior and well-being. Topics include agricultural production, land use systems, technology and credit markets, household labor allocation and migration, investment in education and health, and income inequality.

Two of:|| ECON 2555 || and ECON 2557 or MATH 2606

ECON 3521 b. Economics of Land Use

Non-Standard Rotation

Seminar. Analysis of the economic forces that shape land-use patterns, the relationship between land-use patterns and ecosystem service provision and biodiversity persistence, and the economic value of ecosystem service provision. Investigates methods for increasing ecosystem service values on the landscape and the economic cost of these methods. Analysis of land-use externalities and the failure of land-use patterns to generate maximum societal net benefits; neoclassical economic theory on land-use; methods for estimating market value of land; methods of non-market valuation; efficient land-use patterns from a societal perspective; methods for finding efficient land-use patterns; and governmental and non- governmental organization land conservation programs. Permission of instructor required during add/drop for all students; required at all times for students who have credit for Economics 2218 (same as Environmental Studies 2302) or 2228 (same as Environmental Studies 2228). (Same as ENVS 3921)

PREREQUISITE: ECON 2555

ECON 3525 b. Economic Growth

Non-Standard Rotation

Seminar. Vast differences in nations’ long-run growth experience significantly affect the degree of inequality and overall welfare of the global population. Offers both theoretical and empirical analyses of macro determinants of economic growth. Explores the role of such key factors as the accumulation of physical capital and human capital, productivity and technology, natural resources, openness to trade and capital flow, institutions, culture, and geography.

PREREQUISITE: Two of:|| ECON 2555 || and ECON 2557

ECON 3531 b. The Economics of the Family

Non-Standard Rotation

Seminar. Microeconomic analysis of the family, gender roles, and related institutions. Topics include marriage, fertility, married women’s labor supply, divorce, and the family as an economic organization. (Same as GSWS 3302)

PREREQUISITE: Two of:|| ECON 2555 || and ECON 2557

ECON 3532 b. Business Cycles

Non-Standard Rotation

Seminar. A survey of competing theories of the business cycle, empirical tests of cycle theories, and appropriate macro stabilization policies. Topics include descriptive and historical analysis of cyclical fluctuations in the United States, Keynesian-Kaleckian multiplier- accelerator models, growth cycle models, theories of financial instability, Marxian crisis theory, new classical and new Keynesian theories, and international aspects of business cycles. The current global financial crisis is also analyzed.

PREREQUISITE: ECON 2556

ECON 3533 b. Behavioral Economics

Non-Standard Rotation

Seminar. Standard economics (i.e., neoclassical economics) assumes that individuals are self-interested, rational actors, who optimize well- defined, stable objective functions. Behavioral economics is the study of systematic departures from these assumptions, and the implications for economic outcomes. Topics include errors in information-processing and belief formation, behavioral choice under uncertainty (loss aversion, reference dependence), time inconsistent behavior (self-control problems), and social preferences (altruism, fairness, and reciprocity).

PREREQUISITE: Two of:|| ECON 2555 || and ECON 2557 or MATH 2606

ECON 3534 b. Behavioral Finance

Non-Standard

Seminar. An extensive literature from psychology documents that decision-makers do not behave fully rationally. Behavioral economic theories that incorporate these insights have revolutionized the study of finance. Explores the implications of behavioral deviations from the standard model for financial markets and financial decision-making, including nonstandard preferences, nonstandard beliefs, and heuristics and biases. Emphasizes recent empirical research in the field. Topics may include: noise traders, news models of bubbles, predictability, the disposition effect, status-quo bias, investor inattention, overconfidence, managerial traits, learning from experience effects.

PREREQUISITE: Two of:|| either ECON 2555 or ECON 2556 || and ECON 2557 or MATH 2606

ECON 3535 b. Economics of Education

Non-Standard Rotation

Seminar. Examines the theoretical and empirical analysis of education decision-making and the consequences of educational choices using an economic lens. Begins with the basic human capital model and expands on it to consider signaling, the interplay between ability and human capital, modeling expectations, and the many challenges of measuring the rate of return to educational investment. Educational policies from preschool to graduate studies are also considered, including the public funding of education, class size, and outcome testing. Examples are drawn from both developed and developing countries.

PREREQUISITE: Two of:|| ECON 2555 || and ECON 2557 or MATH 2606

ECON 3540 b. Law and Economics

Non-Standard Rotation

Seminar. Law and economics is one of the most rapidly growing areas in the social sciences. The field applies the concepts and empirical methods of economics to further our understanding of the legal system. Explores the economic analysis of law and legal institutions, including the economics of torts, contracts, property, crime, courts, and dispute resolution. Also focuses on topics in law and economics such as antitrust and regulation, corporations, the family, labor markets, product liability, and intellectual property. Students are introduced to online sources of information in law, and are required to apply economic reasoning to analyze landmark lawsuits in each of these areas. Not open to students who have credit for Economics 3541.

PREREQUISITE: ECON 2555

ECON 3545 b. Macro for Policy and Finance

Non-Standard Rotation

Seminar. When is an economy heading for a crisis? How can we assess its debt dynamics--both government debt and aggregate external debt--and the robustness of its financial institutions? When is an economy set for more rapid growth? Analytic answers to questions like these--which are critical to the work of the IMF, major investors and fund managers, and economic commentators--are the essence of the macroeconomic diagnostics covered.

PREREQUISITE: Two of:|| ECON 2555 || and ECON 2556

ECON 3557 b. Unconventional Monetary Policy

Non-Standard Rotation

Seminar. Considers traditional and unconventional monetary policies to stabilize the economy. First analyzes traditional issues in monetary economics, with particular attention to the effects of inflation and taxation on saving, investment, and output. Then examines the role of unconventional policies, such as the expansion of the Federal Reserve's balance sheet during the Great Recession. The results of such recent monetary policies are put in the context of three other "Great" data points: The Great Depression, Great Inflation, and the Great Moderation.

PREREQUISITE: ECON 2556

ECON 3558 b-MCSR. Macro Risk, Forecasting, and Value

Non-Standard Rotation

Frames investment decisions from the perspective of formal macroeconomic theory and data analysis. Investigates trading strategies pertaining to currencies, commodities, interest rates, and equity indices. Elucidates the influence of geopolitical events and functioning of international monetary and fiscal authorities. Considers variation along the business cycle. Develops principles of forecasting and out of sample testing. Discusses the importance of liquidity management and functioning of hedge funds looking to exploit global imbalances. Daily work with current macroeconomic data and formal strategy validation are central components.

PREREQUISITE: Two of:|| ECON 2556 || and ECON 2557

ECON 4000 b. Advanced Independent Study

ECON 4001 b. Advanced Independent Study

PREREQUISITE: ECON 4000

ECON 4029 b. Advanced Collaborative Study

ECON 4050 b. Honors Project

ECON 4051 b. Honors Project

PREREQUISITE: ECON 4050