Fall 2007 Undergraduate Courses

Social Analysis 10: Principles of Economics, which is listed under the Core Curriculum, is the full-year introductory course in Economics. Social Analysis 10 is designed both for potential concentrators and for those who intend no further work in the field. The Department of Economics strongly encourages students considering concentration to take this course in their freshman year. This is a required course for all Economics concentrators and a prerequisite for higher level courses in economics.

General Economics; Economic Theory; History of Economics

Economics 1010a. Microeconomic Theory
Catalog Number: 1862
Jeffrey A. Miron
Half course (fall term). M., W., F., at 10; and a one-hour weekly section to be arranged. EXAM GROUP: 3
Focuses on the optimizing behavior of individual consumers and firms and the coordination of these individual decisions through markets, including the evaluation of market outcomes. Topics include: theory of the consumer, theory of the firm, decisions involving time and risk, perfect competition, monopoly and monopsony, oligopoly and game theory, markets with asymmetric information, and externalities and public goods.
Note: Economics 1010a fulfills the intermediate microeconomic theory requirement for Economics concentrators. Students may take either Economics 1010a or Economics 1011a for credit. This course, when taken for a letter grade, meets the Core area requirement for Social Analysis.
Prerequisite: Social Analysis 10 and Mathematics 1a or their equivalents.

Economics 1011a. Microeconomic Theory
Catalog Number: 7230
Hsueh-Ling Huynh (Boston University)
Half course (fall term). M., W., 2–3:30; and a one-hour weekly section to be arranged. EXAM GROUP: 7, 8
Economics 1011a is similar to Economics 1010a, but is more mathematical and covers more material. The course teaches the basic tools of economics and to apply them to a wide range of human behavior. Tools include consumer theory, optimization under uncertainty, game theory, welfare economics, incentive theory, and the economics of information. Topics include industrial organization, public finance, law and economics, the economics of the family, religion, and riots.
Note: Economics 1011a fulfills the intermediate microeconomic theory requirement for Economics concentrators. Students may take either Economics 1010a or Economics 1011a for credit. This course, when taken for a letter grade, meets the Core area requirement for Social Analysis.
Prerequisite: Mathematics 21a or permission of the instructor.

Economics 1035. Policy Applications of Psychology and Economics
Catalog Number: 1687 Enrollment: Limited to 30.
Sendhil Mullainathan
Half course (fall term). Tu., Th., 1–2:30. EXAM GROUP: 15, 16
Integrates psychological with economic approaches to traditional public policy issues. International applications include public health, epidemics such as AIDS, fertility, education and psychological impacts of poverty. Domestic applications include discrimination and affirmative action, drugs, crime and unemployment.
Prerequisite: Economics 1010a or 1011a.

Econometrics and Quantitative Methods

Economics 1123. Introduction to Econometrics
Catalog Number: 0813
James H. Stock (fall term) and Rustam Ibragimov (spring term)
Half course (fall term; repeated spring term). Fall: Tu., Th., 11:30–1; Spring: Tu., Th., 1–2:30; and a one-hour weekly section to be arranged. EXAM GROUP: Fall: 13, 14; Spring: 15, 16
An introduction to multiple regression techniques with focus on economic applications. Discusses extensions to discrete response, panel data, and time series models, as well as issues such as omitted variables, missing data, sample selection, randomized and quasi-experiments, and instrumental variables. Aims to provide students with an understanding of and ability to apply econometric and statistical methods using computer packages.
Note: Students may take either Economics 1123 or Statistics 139 for credit. Statistics 139 will not count as econometrics requirement. Also, Economics 1123 may not be taken for credit if taken after Economics 1126, but credit will be given for both courses if Economics 1123 is taken first.
Prerequisite: Statistics 100.

Cross-listed Courses

Statistics 100. Introduction to Quantitative Methods
Statistics 104. Introduction to Quantitative Methods
Statistics 110. Introduction to Probability

Economic History; Development Economics

Economics 1340. Globalization and History
Catalog Number: 4025 Enrollment: Limited to 80.
Jeffrey G. Williamson
Half course (fall term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
Globalization after 1492: first globalization boom 1800-1914, autarkic retreat 1914-1950, second globalization boom since 1950. Uses history to explore sources and impact of world market integration, emerging global capital markets, and mass migrations. Does going global foster growth? Who gains and who loses? Why doesn’t more capital flow to poor countries? Why don’t more poor people migrate? Who votes for protection? Who votes for migration restriction?
Note: Concentrators may not take pass/fail.
Prerequisite: Social Analysis 10.

Monetary and Fiscal Theory and Policy; Public Sector Economics

Economics 1480. Moral Perspectives on Economic Growth
Catalog Number: 3441 Enrollment: Limited to 20.
Benjamin M. Friedman
Half course (fall term). M., W., F., at 10. EXAM GROUP: 3
Considers economic growth and policies that either promote or impede economic growth, from a social, political, and moral perspective. Focuses on ways in which moral ideas, including religious ideas, have influenced economic thinking, and vice versa. Approaches include economic, historical, and literary analyses.
Prerequisite: Economics 1010a (or 1011a) and 1010b (or 1011b).

International Economics

Economics 1530. International Monetary Economics
Catalog Number: 2269
Richard N. Cooper
Half course (fall term). M., W., F., at 11. EXAM GROUP: 4
The theory of exchange rate determination, capital markets, and macroeconomic policy in the open economy. Applications to such issues as the history of international monetary regimes, international policy coordination, debt crises, and the formation of currency unions.
Note: May not be taken for credit with Economics 1531
Prerequisite: Social Analysis 10.

Economics 1535. International Trade and Investment
Catalog Number: 2557
Pol Antràs
Half course (fall term). M., W., 1–2:30; and a one-hour weekly section to be arranged. EXAM GROUP: 6, 7
Analyzes the causes and consequences of international trade and investment. Focuses on the interplay of economic theory and empirical descriptions of foreign trade and direct investment patterns.
Prerequisite: Economics 1010a or 1011a.

Economics 1542. International Trade Policy
Catalog Number: 2613
Stephen James Redding (London School of Economics)
Half course (fall term). M., W., 2–3:30. EXAM GROUP: 7, 8
Provides a discussion of the economic impacts of international trade policies and the political economy of trade policy formation. The course will focus on analytical methods and therefore requires knowledge of calculus.
Prerequisite: Economics 1010a or 1011a, or permission of instructor.

Industrial Organization and Regulation; Environmental Economics

Economics 1641. Industrial Organization: Theory and Practice
Catalog Number: 9099 Enrollment: Limited to 30.
Ulrich Doraszelski (fall term), Ariel Pakes (spring term), and Gregory M. Lewis (spring term)
Half course (fall term; repeated spring term). Fall: M., W., 1–2:30; Spring: M., W., 4–5:30. EXAM GROUP: Fall: 6, 7; Spring: 9
Theoretical and empirical analysis of contemporary topics in industrial organization. Uses economic theory to analyze important issues facing firms, and examines the practical challenges of empirical applications of theory. Topics include horizontal relationships and mergers, vertical integration and control through contractual arrangements, price discrimination, information and search costs, innovation and intellectual property rights, and network externalities. Each topic combines theoretical analysis with a study of actual firm behavior.
Note: Students may not take both Economics 1640 and Economics 1641 for credit.
Prerequisite: Economics 1010a or 1011a.

Financial Economics

Economics 1723. Capital Markets
Catalog Number: 1917
John Y. Campbell
Half course (fall term). Tu., Th., 10–11:30, and a one-hour weekly section to be arranged. EXAM GROUP: 12, 13
An introduction to the economic analysis of investment decisions and financial markets. Concepts include time discounting, market efficiency, risk, and arbitrage. These concepts are applied to fixed-income securities, equities, and derivative securities.
Prerequisite: Mathematics 20 and Economics 1010a or 1011a.

Labor, Human Resources, and Income Distribution; Urban Economics

Economics 1813. The Indebted Society
Catalog Number: 6957
James L. Medoff
Half course (fall term). M., W., (F.), at 10. EXAM GROUP: 3
In recent years, the U.S. economy has entered an unprecedented era of dependence on debt by governments, corporations and households. A massive debt overhang permeates our economy, casting a shadow over government, corporate and household finance and shaping decision-making processes for all of these actors. This course examines both causes and effects of this penchant for debt, utilizing a multidisciplinary approach drawing from labor economics, public/corporate finance, law, public policy, and even sociology and psychology.
Prerequisite: Economics 1010a (or 1011a) and Economics 1010b (or 1011b).

Economics 1816. Race in America
Catalog Number: 2483
Roland G. Fryer
Half course (fall term). W., 6–9 p.m. EXAM GROUP: 9
Examines the causes and consequences of racial inequality in America and evaluates the efficacy of various market and non-market solutions.Topics include: the racial achievement gap in education, the impact of crack cocaine on inner cities, racial differences in health, crime and punishment, labor market discrimination, social interactions and the effects of peer groups, affirmative action, and more.
Prerequisite: Social Analysis 10.

Tutorials, Junior Seminars, and Senior Thesis Seminars in Economics

*Economics 910r. Supervised Reading and Research
Catalog Number: 1020
Jeffrey A. Miron
Half course (fall term; repeated spring term). Hours to be arranged.
Supervised reading leading to a long term paper on a topic or topics not covered by regular courses.
Note: Does not count for concentration credit and may not be taken Pass/Fail. Requires signatures of the adviser and of the Director of Undergraduate Studies. Application available at the Economics Undergraduate Office at Littauer Center, North Yard.

*Economics 975 (formerly *Economics 980). Tutorial — Theory Review
Catalog Number: 3281
Jeffrey A. Miron
Half course (fall term). Tu., Th., 1–2:30.
This course provides a thorough review of intermediate microeconomics and macroeconomics which form the central core of the undergraduate curriculum. Without a systematic knowledge of this material it is impossible to understand more advanced courses, many of which launch directly from the concepts covered here. It is thus not sufficient to simply have a passing acquaintance with these ideas; considerable familiarity with these models, to the extent that you can manipulate its constituent parts with ease, is necessary. Ultimately, these courses train you to start thinking like an economist, and to start using the key terms and tools all economists use.
Note: Required of and limited to concentrators who received below a B-/C+ average in the Economics 1010/1011 sequence.

Economics 980 Junior Seminars

Junior seminars are designed to introduce students to research in a particular area of economics and to prepare students to undertake their own research project. All junior seminars require a major research paper. The seminar prerequisites are intermediate microeconomic and macroeconomic theory, statistics, and concurrent enrollment in econometrics; any additional prerequisites are listed with the individual seminar. These seminars are limited to 16 participants with preference given to Economics and Applied Math/Economics concentrators in their junior year. Enrollment in these seminars is determined by a lottery based on student preferences. Other Economics concentrators and undergraduate non-concentrators with the appropriate prerequisites may enroll in junior seminars on a space-available basis.

*Economics 980b. Women, Work, and the Family: Present and Past
Catalog Number: 1581
Claudia Goldin
Half course (fall term). M., W., 1–2:30. EXAM GROUP: 6, 7
The economic emergence of women has been the single most important change to the labor forces of many nations in the past century. Why and how did these changes occur and what have been their social, political, and demographic implications? Was there a revolution in gender roles and, if so, is it continuing or stalled? Readings draw on current economic theory, empirical analyses, and historical works and literature from the 19th century to the present.

*Economics 980c. The Economics of World Migration
Catalog Number: 6200
Jeffrey G. Williamson
Half course (fall term). W., 2:30–4:30. EXAM GROUP: 7, 8, 9
This seminar will explore every economic dimension of world mass migration: north to north, south to south, and south to north. The seminar will explore the labor market and fiscal impact in immigrating countries, immigrant assimilation, the trade-immigration trade-off, the global capital-immigration connection, emigration determinants, emigrant selectivity, brain drain, remittances, and the political economy of immigration.

*Economics 980k. Religion and Political Economy - (New Course)
Catalog Number: 9110
Robert J. Barro
Half course (fall term). W., 2–4.
Theory and empirical analysis of interactions between religion and political economy. Subject matter includes research by economists and sociologists of religion, beginning with Adam Smith and Max Weber and extending to modern treatments. Demand-side models encompass the role of salvation and the secularization hypothesis. Supply-side models include the religion-market model, which stresses government regulation and state religions. Influences of religious beliefs and participation on economic growth, democracy, education, fertility, etc.

*Economics 980l. Macroeconomics & Politics - (New Course)
Catalog Number: 9442
Emmanuel Farhi
Half course (fall term). Tu., 2–4. EXAM GROUP: 16, 17
Topics include the political economy of economic growth, including the roles of democracy and legal institutions; inflation, monetary policy, fiscal policy, and analyses of economic and monetary unions.

*Economics 980m. Market Design - (New Course)
Catalog Number: 7401
Susan Athey
Half course (fall term). W., 4–6. EXAM GROUP: 9
This course studies the design of organized markets, focusing on efficient organization and the incentives created by market rules. Applications include online auction markets, government auctions of natural resources, matching markets (students to classes or schools, medical residents to hospitals, kidneys to recipients), health care markets, and electricity markets. The analysis relies on a mix of documenting the rules of real-world markets, game theoretic analysis, empirical analysis, and experimental work.

*Economics 980n. How Do We Fight Poverty? - (New Course)
Catalog Number: 8524
Alberto F. Alesina
Half course (fall term). Tu., 2–4. EXAM GROUP: 16, 17
This tutorial will examine recent debates about poverty reduction programs. It will touch upon issues such as whether economic growth is all one needs to reduce poverty, the relationship between growth and income inequality, the pros and cons of foreign aid, the role of the World Bank and IMF, whether free trade is beneficial for poor countries.

Economics 985 Senior Thesis Seminars

These seminars are limited to seniors writing senior honor theses. Each seminar focuses on the research topics of interest to the participants. Emphasis is placed on research design, methodological problems, literature review, and sources of data. Regular student presentations of work in progress are required. An Economics 985 seminar taken in the senior year substitutes for Economics 990, and seniors will not be allowed to enroll concurrently in both courses. All 985 seminars are limited to 16 students.

*Economics 985a. Research in Microeconomics
Catalog Number: 7166
Jeffrey A. Miron
Full course. W., 2:30–4:30.
Workshop for seniors writing theses in theoretical and applied microeconomics. Emphasis on choice of research topics, methodology, and data sources. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.

Economics 985c. Research in Labor Economics
Catalog Number: 5409
Jeffrey A. Miron
Full course. Fall: F., 3–5. EXAM GROUP: Fall: 8, 9
Workshop for seniors writing theses in labor economics and related topics. Emphasis on choice of research topics, methodology, and data sources. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.

*Economics 985d. Research in Economic Development
Catalog Number: 4989
David Canning (Public Health)
Full course. Tu., 4:30–6:30.
Workshop for seniors writing theses in the areas of economic history and economic development, including health and population issues. Emphasis on choice of research topics, methodologies, and data sources. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.

*Economics 985e. Research in Macroeconomics
Catalog Number: 3740
Jeffrey A. Miron
Full course. Tu., 4–6.
Workshop for seniors writing theses in the fields of monetary and fiscal policy, business cycles, and economic growth. Emphasis on choice of research topics, methodology, and data sources. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.

*Economics 985f. Research in International Trade and Finance
Catalog Number: 7157
Richard N. Cooper
Full course. M., 3–5:30.
Workshop for seniors writing theses in international trade and finance. Emphasis on choice of research topics, methodology, and data sources. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.

*Economics 985g. Research in Behavioral and Experimental Economics
Catalog Number: 2566
Jeffrey A. Miron
Full course. W., 6–8 p.m.
Workshop for seniors writing theses in behavioral and experimental economics. Emphasis on choice of research topics, methodology, and data sources. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.

*Economics 985h. Research in Financial Markets
Catalog Number: 0350
Jeffrey A. Miron
Full course. Th., 4–6.
Workshop for seniors writing theses in finance. Emphasis on choice of research topics, methodology, and data sources. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honor thesis are required. Topics include asset pricing and corporate finance.

*Economics 985k. Research in Public Economics
Catalog Number: 0871
Jeffrey A. Miron
Full course. Th., 3–5.
Workshop for seniors writing theses in public economics. Emphasis on choice of research topics, methodology, and data sources. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required. Topics have included taxation, health economics, environmental and resource economics, and education.

*Economics 990. Tutorial — Senior Year
Catalog Number: 7342
Jeffrey A. Miron and members of the Department
Full course. Hours to be arranged.
Note: Students who are writing a senior thesis out of sequence (i.e., beginning in the spring) must enroll in Economics 990 in the spring and complete the course in the fall. Students must write a 25-page paper at the end of the first term of Economics 990. Students currently enrolled in Economics 985 may not enroll in Economics 990.