1997-98 University Bulletin Entry for:

Economics

S = Objectives

All concentrators in economics receive broad yet rigorous training in the core subjects of the discipline: general principles, micro and macroeconomic theory, and statistics. Concentrators learn to use skills developed in the core to analyze a variety of economic problems, social issues, and economic institutions. This goal is accomplished in four elective courses chosen from a list that includes most of the subfields of interest to economists, e.g., international economics, financial markets, managerial economics, country studies (Japan, China, or eastern Europe), law and the regulation of economic activity, and the public sector.

The department stresses analytic and quantitative approaches to the economy as a system as well as to specific subject areas and economic issues. (As a consequence we expect students to develop analytic and quantitative skills useful not only for studying economics but for studying other subjects as well.) Both theoretical and applied courses are available. By the completion of the concentration, students are expected to be familiar with the scholarship associated with a variety of economic subjects; concentrators learn to read books and articles written for the general economist.

The concentration in economics provides background for many positions in business or government. A few graduates pursue advanced degrees in economics while others enroll in professional schools of business, law, and other fields. Programs of study can be designed to match the interests of the student (see list of courses on the next page).

Qualified seniors are invited to participate in the department's honors program which involves research and the writing of a thesis under the supervision of a member of the faculty. Before the senior year, Brandeis undergraduates can apply for admission as "five-year students" to the Lemberg Master's Program in International Economics and Finance (see the Graduate School of International Economics and Finance section of this Bulletin). The department offers a general minor in economics; a program in international business (see the Program in International Business section of this Bulletin); and for students who matriculated prior to the fall of 1997 a minor in Business and Managerial Economics (BAME). The latter two programs are open to economics concentrators.

S = How to Become a Concentrator

The concentration has a single entry point, ECON 2a (Introduction to Economics). (This course is also an option in the quantitative reasoning component of the General University Requirements.) Most concentrators begin their study in the freshman or sophomore year with ECON 2a followed by a second principles course, ECON 8b (Analysis of Economic Problems). We require five core courses (two principles courses followed by three intermediate theory courses: microeconomic theory, macroeconomic theory, and statistics) plus four electives. It is important to begin the study of economics early because "upper level" electives, a requirement for the concentration, build on intermediate courses and have from three to six prerequisites. Also, some calculus is used in intermediate theory courses; students who have not had a good high school calculus course should take MATH 10a (Techniques of Calculus), at a minimum. Students with limited mathematical training should begin with MATH 5a (Precalculus Mathematics).

S = Faculty

F. Trenery Dolbear, Chair

Macroeconomics. Theory and computer simulations. Public sector.

Anne Carter

Technological change. Input/output.

Atreya Chakraborty

Investment. Corporate finance.

Gianni DeNicoló

Monetary theory. Financial economics. Empirical finance.

Robert Evans, Jr.

Japan. Labor. Economic history.

Benjamin Gomes-Casseres

International business. International political economy.

Paul Harrison

Applied times-series econometrics. Financial economics. Macroeconomics. Economic history.

Jane Hughes

Domestic and international cash management. Third World debt, sovereign risk, and foreign exchange markets.

Adam Jaffe

Technological change. Economics of regulation. Industrial organization.

Gary Jefferson

China. Technical progress. Open economy macroeconomics.

Sunghyum Henry Kim

International finance. Open economy macroeconomics. International trade.

M. Ayhan Kose

Open economy macroeconomics. International economics.

Arthur Lewbel

Econometrics. Demand theory. Aggregation.

Rachel McCulloch

International trade theory. Trade policy. Macroeconomic coordination. Investment and technology transfer.

Julie Nelson

Demand analysis. Gender issues. Public economics. Development.

Peter Petri

International trade. Development. Japan. Korea.

Michael Plummer

International trade and finance. Regional economic integration. International development (particularly Southeast Asia).

Barney Schwalberg, Undergraduate Advising Head

Russia. Labor. Education.

S = Requirements for the Concentration

A. ECON 2a and ECON 8b. Normally a grade of C- or higher is required in these courses.

B. ECON 80a, 82b, and 83a.

C. Four elective courses in economics, two of which must be "upper-level," numbered ECON 100 or above, with the exception that ECON 175a does not count as an upper-level elective. Some IEF courses as well as a few Heller School (HSSW) courses are acceptable as electives. Consult the undergraduate advising head.

D. A passing letter grade must be obtained in each course taken for concentration credit. (Pass/Fail courses are not allowed.) Students must also achieve a grade point average of at least 2.00 in concentration courses; students close to this average should consult the undergraduate advising head before enrolling in economics courses for the senior year.

E. Any exception to the above rules requires department approval.

See the department academic administrator or the undergraduate advising head for a petition; for example, a student must petition to get concentration credit for an economics course taken at another university.

S = Requirements for the Undergraduate Minor

A. ECON 2a.

B. ECON 8b.

C. Three additional economics courses, which must be approved by the undergraduate advising head.

D. A grade point average of 2.00 or higher is required in courses offered for the minor.

S = Undergraduate Minor in Business and Managerial Economics (BAME)

Only students who entered Brandeis prior to the fall of 1997 are eligible for the BAME minor.

.

A. Students are required to take the following courses: ECON 2a, 8b, 12a, and 83a.

B. One of the following courses: ECON 33a, 37b, 74b, 76b, 141b, 171a, 172b, or 177b.

C. One of the following courses: ECON 19b, 33a, 37b, 136b, or 161a.

D. BAME minors who are not economics concentrators are required to take ECON 37b (unless they have taken/will take ECON 80a).

1. Note that ECON 33a and 37b are listed above in group B and in group C. A student may NOT, however, double-count one of these courses, i.e., a single course (ECON 33a or 37b) cannot be used to satisfy two requirements.

2. An economics concentrator may complete this minor. Economics concentrators may double-count no more than three of the six courses for both the minor and the economics concentration.

3. A psychology concentrator may substitute PSYC 51a and a mathematics concentrator MATH 36a for ECON 83a.

4. While ECON 12a is not a formal prerequisite for ECON 19b or ECON 33a, we recommend strongly that students who expect to take either course complete ECON 12a before enrolling.

E. A grade point average of 2.00 or higher is required in courses offered for the minor.

S = Special Notes Relating to Undergraduates

T = Program in International Business

Students interested in pursuing the formal program in international business and economics should consult the description given in the Program in International Business section of this Bulletin.

T = Mathematics and Computer Science

There are no formal mathematics or computer science requirements for economics concentrators. However, intermediate theory courses (80a, 82b, 83a) assume a knowledge of calculus at the level taught in MATH 10a (Techniques of Calculus). (Students with weak mathematics background should begin with MATH 5a [Precalculus Mathematics].) For some more advanced courses additional calculus, linear algebra, and computer science courses provide a useful background.

T = Academic Advisor and Selection of Courses

Students are strongly advised to choose courses with well-considered educational objectives in mind. Course offerings in economics can be grouped roughly into five categories (see below). Some students will wish to take at least one course from each of the five groups and thereby obtain a broad exposure to the discipline. Others will find a more narrow focus with in-depth study in only a few groups more appropriate. Each concentrator should discuss educational objectives and course selections and sequencing with his/her academic advisor.

T = Course Offering Groups

1. Core Analytical Courses

2a Introduction to Economics

8b Analysis of Economic Problems

80a Microeconomic Theory

82b Macroeconomic Theory

83a Statistics for Economic Analysis

2. International and Comparative

25b Transition and Institutional Economics

26a Latin America's Economy

27b The Economy of Japan

32b Comparative Economic Systems

60a International Economic Policy

160a International Trade Theory

161a International Finance

162a Regional Economic Integration in Theory and Practice

163a Asia-Pacific Economic Cooperation

175a Introduction to the Economics of Development

176b Theory and Practice of the Firm in Comparative Perspective

3. The U.S. Economy: Analysis, Institutions, Policy

22a American Economic History

38b Economic Policy Issues

50b Urban Economics

53b Welfare Reform and the Economics of Poverty

57a Environmental Economics

58b Gender and Economics

59b Introduction to the Economics of Education

74b Law and Economics

76b Trade Unions, Collective Bargaining, and Public Policy

134b Public Sector Economics

135a Industrial Organization

141b The Economics of Technological Change

171a Financial Economics

172b Money and Banking

177b Economic Regulation and Deregulation

4. Analytical Methods and Managerial Economics

12a Managerial Accounting

19b Issues in Business and Management

33a Business in the Global Economy

37b Functions of Capitalist Enterprise

136b Managerial Economics

184b Econometrics

189a Mathematics for Economic Analysis

The following courses from other groups also contain substantial material relating to management: 60a, 74b, 76b, 80a, 82b, 83a, 134b, 135a, 141b, 172b, 176b.

Several first year International Economics and Finance (IEF) courses would be appropriate analytical electives for advanced undergraduates. See your advisor or the undergraduate advising head.

S = Courses of Instruction

S = (1-99) Primarily for Undergraduate Students

ECON 2a Introduction to Economics

[ qr ss SA ]

Common final exam.

A one-semester introduction to economic analysis with policy applications. The economist's approach to social analysis is systematically elaborated. Usually offered every semester. Multiple sections.

Staff

ECON 8b Analysis of Economic Problems

[ ss ]

Prerequisite: ECON 2a. Enrollment limited to 40. Common final exam.

The basic tools and models of economic analysis are applied to a wide range of topics in micro, macro, and international economics. Usually offered every semester. Multiple sections.

Staff

ECON 12a Managerial Accounting

[ ss ]

Prerequisite: ECON 2a. This course may not be taken for credit by students who have received credit for IEF 204a (formerly IEF 112a). Signature of the instructor required.

Develops basic concepts and accounts and applies them to income measurement, capital values, and costs. Through the use of cases, develops the basis for rational choice and control of business activity. Usually offered every year.

Staff

ECON 19b Issues in Business and Management

[ ss ]

Prerequisite: All other required courses for the minor in business and managerial economics. Open only to students minoring in business and managerial economics. Does not satisfy concentration requirements in economics. Signature of the instructor required.

Explores issues central to the success of American business. Representative issue: Why have some companies developed strong export markets while others focus almost exclusively on domestic sales? Special attention is given to ethical issues and the role of the corporation and its employees as citizens of their own nation and of the world of nations. Although the topics may vary from year to year, the course may NOT be repeated for credit. Usually offered every year.

Ms. Hughes

ECON 22a American Economic History

[ ss ]

Prerequisite: ECON 2a.

A study of major institutions and factors influencing the economy. Usually offered in even years.

Mr. Evans

ECON 25b Transition and Institutional Economics

[ cl25 ss ]

Prerequisite: ECON 2a.

Examines the historical background, economic theory, and institutional change relevant to the transitions of China and central Eastern European countries from centrally planned economies to market-oriented economies with expanded private ownership. Usually offered in even years.

Mr. Jefferson

ECON 26a Latin America's Economy

(Formerly ECON 25a)

[ cl24 nw ss NW ]

Prerequisite: ECON 2a. This course may not be repeated for credit by students who have taken ECON 25a in previous years.

This course will present Latin America's trends, conflicts, and diversity. It will analyze the main issues of poverty, debt, inflation, stabilization, populism, and external policies and will end with an up-to-date debate on the current economic and social policies. Usually offered every year.

Staff

ECON 27b The Economy of Japan

[ cl41 nw ss NW ]

Prerequisite: ECON 2a.

Examines Japan's economy, including labor, industrial organization, foreign trade, etc. Usually offered every year.

Mr. Evans

ECON 28a The Israeli Economy

[ ss ]

Prerequisite: ECON 2a. Enrollment limited to 35.

Examines the Israeli economy from three angles: historical, institutional, and macroeconomic. The analysis highlights the specifics of the Israeli economy, but also makes an effort to draw general conclusions from the experience of this economy. Offered every fourth year.

Mr. Zeira

ECON 32b Comparative Economic Systems

[ cl25 ss ]

Prerequisite: ECON 2a.

Comparative study of the treatment of economic problems under different economic systems. Economic ideology and practice of capitalism, communal experiments, market socialism, and workers' management. A brief evaluation of Marxism. Usually offered in odd years.

Mr. Schwalberg

ECON 33a Business in the Global Economy

[ ss ]

Prerequisite: ECON 2a. Enrollment limited to 35.

Modern firms frequently cross national borders to find new markets and resources. Their strategies are then shaped by the international economy and by the policies of national governments. Using case discussion, we will explore why and how U.S., Japanese, and European firms operate outside their home countries. Usually offered every year.

Mr. Gomes-Casseres

ECON 37b Functions of Capitalist Enterprise

[ ss ]

Prerequisites: ECON 2a (may be taken concurrently) or permission of the instructor. Enrollment limited to 40.

Introduces the internal complexity of modern businesses and the various roles they play in society. We first examine the internal workings of firms--marketing, operations, finance, and other functions. Subsequently, we examine the relationships between businesses and their context--the economy, social issues, and government. Usually offered every year.

Mr. Gomes-Casseres

ECON 57a Environmental Economics

[ ss ]

Prerequisites: ECON 2a.

This course will investigate the theoretical and policy problems posed by the use of renewable and nonrenewable resources. Theoretical topics include: the optimal pricing of resources, the optimal use of standards and taxes to correct pollution problems under uncertainty, and the measure of costs and benefits. Usually offered every year.

Staff

ECON 58b Gender and Economics

[ cl15 cl36 wi ss ]

Prerequisite: ECON 2a. Enrollment limited to 35.

This course investigates differences by gender in occupation and earnings, explanations for differences in economic outcomes by gender from neoclassical and other economic viewpoints, governmental policies related to labor market equity, and gender bias in economic models and methods. Usually offered every year.

Ms. Nelson

ECON 59b Introduction to the Economics of Education

[ ss ]

Prerequisites: ECON 2a.

An introduction to economic analysis of the education sector. Topics include the concept of human capital, private and social return to investment in education, cost-benefit analysis of special educational programs, and issues in the financing of education. Usually offered in even years.

Mr. Schwalberg

ECON 60a International Economic Policy

[ ss ]

Prerequisite: ECON 2a.

Introduction to international finance and trade. Topics include macroeconomic relationships in an open economy, exchange rates, trade deficits, international debt, gains from trade, trade policy, and protectionism. Usually offered every year.

Staff

ECON 74b Law and Economics

[ wi ss ]

Prerequisite: ECON 2a.

A study of economic foundations of American law in selected areas of interest. Topics include the role of property rights and liability rules in the control of externalities, controlling the cost of accidents, the control of criminal behavior, product failure and damage, medical malpractice. Usually offered every year.

Mr. Evans

ECON 76b Trade Unions, Collective Bargaining, and Public Policy

[ ss ]

Prerequisite: ECON 2a.

Study of trade unions, the process and impact of collective bargaining, and the legal environment. Usually offered in even years.

Mr. Evans

ECON 80a Microeconomic Theory

[ ss ]

Prerequisite: ECON 8b. Intermediate theory courses (ECON 80a, 82b, 83a) assume a knowledge of calculus at the level taught in MATH 10a. Enrollment limited to 35.

Analysis of the behavior of economic units within a market economy. Emphasis upon the individual's decisions as demanders of goods and suppliers of resources, and firms' decisions as suppliers of goods and demanders of resources under various market structures. Usually offered every semester.

Staff

ECON 82b Macroeconomic Theory

[ ss ]

Prerequisites: ECON 8b. ECON 80 and 83a would be helpful. Enrollment limited to 35.

Examination of economic aggregates--such as national income, consumption, investment, government spending, and net exports--and economy-wide variables--such as the interest rate, the exchange rate, the price level and inflation, and the unemployment rate. The influence of fiscal and monetary policies on these aggregates and variables is examined. Usually offered every semester.

Staff

ECON 83a Statistics for Economic Analysis

[ qr ss ]

Prerequisite: ECON 2a. Enrollment limited to 35.

A first course in statistical inference. Topics include descriptive statistics, probability, normal and binomial distributions, sampling distributions, point and interval estimation, properties of estimators, hypothesis testing, regression, and analysis of variance. Usually offered every semester.

Staff

ECON 98a Independent Study

Signature of the instructor required. Does not meet the concentration requirement in economics.

Normally available for a student who has taken a course and wishes to pursue further reading or research in that field or study a subject not listed among the department course offerings. Usually offered every year.

Staff

ECON 98b Independent Study

Signature of the instructor required. Does not meet the concentration requirement in economics.

See ECON 98a for course description. Usually offered every year.

Staff

ECON 99d Senior Research

Signatures of the instructor and the honors coordinator required. Does not meet the concentration requirement in economics.

A student whose grade point average in economics courses is 3.00 or above may petition to be admitted into the Senior Honors Program and enroll in this course. Usually offered every year.

Staff

G = (100-199) For Both Undergraduate and Graduate Students

ECON 134b Public Sector Economics

[ ss ]

Prerequisite: ECON 80a.

The effect of tax and expenditure policies on economic efficiency and equity. Topics include externalities and public goods, public choice, cost-benefit analysis, income redistribution, social security, health care. Also discussion of U.S. tax system, public debt, state and local finance. Usually offered every year.

Staff

ECON 135a Industrial Organization

[ qr ss ]

Prerequisite: ECON 80a. Enrollment limited to 35.

Economic analysis of industrial organization and strategy. Topics include markets with a dominant firm, oligopoly (including several models of strategic interaction), monopolistic competition, and cartels. Students construct and analyze computer-based models of market structure, conduct, and performance. Usually offered every year.

Staff

ECON 136b Managerial Economics

[ ss ]

Prerequisites: ECON 80a, 83a, and MATH 10a.

An application of the skills and perspectives of economists to a variety of managerial problems in business and the public sector. Some case studies are included. Usually offered every fourth year. Last offered in the spring of 1995.

Staff

ECON 141b Technological and Economic Change

[ ss ]

Prerequisite: ECON 80a.

Technological change as the central focus of modern economies. Topics include changing industrial and international specialization, economics of research and development, innovation, diffusion and technology transfer, appropriability, patents, information markets, productivity, intersectoral effects, global competitiveness. Usually offered every year.

Ms. Carter

ECON 160a International Trade Theory

[ ss ]

Prerequisite: ECON 80a.

Causes and consequences of international trade and factor movements. Topics include determinants of trade, effects on welfare and income distribution, trade and growth, protection, foreign investment, immigration, and preferential trading. Usually offered every year.

Ms. McCulloch

ECON 161a International Finance

[ ss ]

Prerequisites: ECON 80a and 82b.

Applications of international economic theory--regarding trade, the balance of payments, investments, and exchange rates--to the management of import/export firms and multinational corporations. Usually offered every year.

Staff

ECON 162a Regional Economic Integration in Theory and Practice

[ qr ss ]

Prerequisites: ECON 60a or 160a, ECON 80a.

This course surveys recent initiatives to create trade blocs in Europe, the Americas, and Asia and analyzes their economic implications within and outside the blocs and for the global trading system. Usually offered in odd years.

Mr. Plummer

ECON 163a Asia-Pacific Economic Cooperation

[ ss ]

Prerequisites: ECON 8b and ECON 80a, or permission of the instructor.

This course is divided into two parts: the East Asian miracle and Asia-Pacific economic cooperation. Part one explores the origins of successful econonomic development along the Pacific Rim from a policy perspective. Part two considers trends in economic integration in the Asia-Pacific region, with a focus on Southeast Asia and APEC. Usually offered in even years.

Mr. Plummer

ECON 171a Financial Economics

[ ss ]

Prerequisites: ECON 80a and 83a. Enrollment limited to 45.

An introduction to financial economics. Topics include the selection of assets, portfolio choice under uncertainty, equilibrium asset pricing models, the efficient markets hypothesis, futures, and options markets. Usually offered every year.

Staff

ECON 172b Money and Banking

[ ss ]

Prerequisites: ECON 80a and 82b. Enrollment limited to 35.

Considers the operation of banks and other financial institutions in a money- and capital-market setting. The role of central banks in the control of the quantity of money is examined in relation to the performance of the national economy. Supervision of banks, insurance of deposits, reform of banking legislation, as well as the internationalization of banking are also studied. Usually offered every year.

Staff

ECON 175a Introduction to the Economics of Development

(Formerly ECON 75a)

[ cl32 ss ]

Prerequisite: ECON 2a or permission of the instructor. This course may not be repeated for credit by students who have taken ECON 75a in previous years.

An introduction to various models of economic growth and development and evaluation of these perspectives from the experience of developing and industrial countries. Usually offered every year.

Mr. Jefferson

ECON 176b Theory and Practice of the Firm in Comparative Perspective

[ ss ]

Prerequisite: ECON 80a.

The firm is a basic unit of economic organization. This course moves beyond the conventional treatment of the firm as a black box to examine aspects of its structure, behavior, and performance. Key issues include ownership and governance, including issues of hierarchy and the principal-agent problem, technical innovation, investment, and differences in firms across countries. Usually offered in even years.

Mr. Jefferson

ECON 177b Economic Regulation and Deregulation

(Formerly ECON 77b)

[ ss ]

Prerequisite: ECON 80a. This course may not be repeated for credit by students who have taken ECON 77b in previous years.

Rate regulation of natural monopolies, antitrust regulation of horizontal and vertical mergers and contracts, and the deregulation movement. Focus on the peak-load pricing problem, vertical restraints, and case histories of airlines and savings and loan institutions. Usually offered every year.

Staff

ECON 184b Econometrics

[ qr ss ]

Prerequisites: ECON 80a, 82b, and 83a.

An introduction to the theory of econometric regression and forecasting models, with applications to the analysis of business and economic data. Usually offered every year.

Mr. Lewbel

ECON 189a Mathematics for Economic Analysis

[ ss ]

Prerequisites: ECON 80a and MATH 10a.

This course will focus on the application of mathematical techniques and tools in economics. Our purpose will be to investigate a variety of economic analyses in which mathematical techniques prove useful. Topics include linear algebra, multi-variable optimization, and dynamic analysis. Usually offered every year.

Mr. DeNicoló

S = Cross-Listed Courses

HSSW 355b

Welfare Reform and the Economics of Poverty

HSSW 540b

Families, Work, and the Changing Economy