Bard College Catalogue 2009-2010
2009-2010

Economics

http://economics.bard.edu

Faculty

Overview

Adam Smith (1776) defined “political economy” as the science of “the nature and causes of the wealth of nations.” The basic methodological approach of economics is to analyze the ubiquitous problem of human choice among alternative uses of limited resources. Economics examines how decisions are influenced by incentives, opportunities, and resource constraints, and explores the interacting consequences of those choices in our private and public lives.
Issues of public policy invariably have an economic dimension, and the Bard Economics Program emphasizes the policy applications of economic theory at the local, national, and global levels. The focus on public policy as well as courses in political economy and economic philosophy and methodology aim to support the pedagogical goals of Bard College as a liberal arts institution. At the same time, a full complement of rigorous standard courses for students planning to pursue graduate study in economics is offered. And for students who wish to pursue a career in the financial world, Bard offers a five-year program leading to a B.S. degree in economics and finance and a B.A. degree in any other program. For more information on this program, see page 46.

Areas of Study

Economics students may select from among four suggested areas of concentration: (1) International Trade and Finance, Development, and National Economic Policy, a broad area covering national and global issues of growth and development, monetary and fiscal policy, trade and finance, and economic history; (2) Public Economics, which applies microeconomic and other methods to the analysis of collective decisions and public choice, and includes such topics as public finance, economic regulation and antitrust, political economy, and the economics of property rights; (3) Economics of Labor, the Household, and the Firm, in which themes that bear directly on the economic circumstances of families and households in their roles as workers, savers, and consumers are addressed, such as labor market discrimination, income distribution, government social programs, and population and demography; (4) History of Economic Thought and the Methodology of Economics, a two-course sequence in the history of economic analysis, supplemented by courses that explore particular methodological approaches and schools of thought that challenge or complement the neoclassical view, e.g., ecological economics, geoclassical economics, neo-Marxian economics, and feminist economics, among others.

Requirements

Three courses, including Economics 101, 102, or (preferably) both, are required for Moderation. At Moderation students identify a concentration area and discuss their preliminary ideas for the Senior Project. It is recommended that students take several 200-level applied courses during the sophomore and junior years. Graduation requirements include: (1) The theory sequence (Introduction to Microeconomics, Introduction to Macroeconomics, Intermediate Microeconomics, and Intermediate Macroeconomics); (2) Statistics (students with a prior background in mathematics may take Mathematics 319, Probability and Statistics, to satisfy this requirement); (3) a course in economic history; (4) a course in the history of economic thought; (5) students must satisfy either the economics or interdisciplinary concentration of electives (for details, see Economics Program website); (6) Calculus I (Mathematics 141) or the equivalent is a prerequisite for Economics 201 and 202 (Calculus II, Mathematics 142, is recommended); (7) Senior Project and Economics Senior Conference (Economics 401–402).

Recent Senior Projects in Economics:

“Oil Shocks as a Contributing Factor for U.S. Recessions (Linear vs. Non-Linear Frameworks)”
“Price Variation in Internet Auction Markets for Homogenous Goods—Theory and Practice; Case Study: eBay”
“Effect of Islam on Institutions and Gender Empowerment: A Study of South and Southeast Asian Economics”
Productivity Growth Using Econometric Analysis and Augmenting Existing Models”

Courses

The Economics Program offers several courses of general interest at the 100 level that introduce simple economic principles and show how they may be applied to questions of public policy, political philosophy, or household decision making. The program also offers many courses of special interest to students in political studies, environmental studies, historical studies, sociology, gender and sexuality studies, philosophy, American studies, and other fields. These courses usually have a prerequisite of Economics 101, 102, or 120.
Students contemplating graduate school in economics are encouraged to take advanced theory courses (Economics 301, 302) and to develop their quantitative skills with additional courses such as Introduction to Mathematical Economics (Economics 205), Econometrics (Economics 329), and related courses in mathematics (Linear Algebra, Proofs and Fundamentals, Probability and Statistics).
Sample curricula for the four areas of concentration within the Economics Program are available on the Economics Program website.

Introduction to Microeconomics
Economics 101A
cross-listed: eus
This course covers the essential ideas of economic analysis. It develops models of consumer and firm behavior, including demand and supply, in the context of an idealized competitive market. Students analyze several ways in which the real world deviates from this model—e.g., monopoly and other forms of imperfect competition; minimum wages and other price controls—and explore public policy problems.

Experimental Microeconomics
Economics 101E
cross-listed: eus
Traditionally, economics has been regarded as a nonexperimental science, where researchers rely on direct observations of the real world to verify their theories. That view, however, has changed in the last 20 years, as many researchers now test economic theories in laboratory settings. This course explores this relatively new methodology in economics. Each week, students conduct an experiment, and then examine the underlying principles of the experiment and how they can be applied to analyze real-world issues. This course fulfills the requirement of Economics 101A.

Introduction to Macroeconomics
Economics 102
cross-listed: eus, gis
This course begins with an examination of the aggregate behavior of modern economies: the factors leading to economic growth, explanations of booms and recessions, unemployment, interest rates, inflation, and budget deficits or surpluses. Students examine government’s ability (or inability) to use monetary and fiscal policies to achieve economic goals; they debate whether government should use monetary and fiscal policy to try to “fine-tune” the economy and what the likely effects of such government involvement are.

Economic Dimensions of Public Issues in the United States
Economics 110
cross-listed: american studies
Basic economic theory is used to examine some of the major issues facing the U.S. economy today, among them poverty and welfare reform, the trade deficit, and the health care system. Topics vary with current events. Students select four or five topics of general interest and work in teams to conduct and present research on each side of the cases selected for study. After a general review of each issue, the class focuses on its economic dimensions. Simple theoretical principles are introduced and used to illuminate the economic forces at work.

Economic Dimensions of World Issues
Economics 115
cross-listed: gis, human rights, social policy, sts
An introduction to global and international issues of current and enduring interest. (Public issues in the United States are addressed in the fall semester companion course, Economics 110.) Topics include the WTO and trade liberalization; European integration; global warming, deforestation, and other environmental issues; and the AIDS crisis in Africa, among many others. Discussion begins with a general review using materials from the popular media. This is followed by a more detailed analysis using micro- and macroeconomic concepts and relevant theoretical models and principles.

Social Security and Health Care
Economics 120
Social Security and health care financing share the stage in a national debate about the role of government in a market economy, and both policy areas have been cited as financial crises. This course is designed to apply dispassionate economic analysis to an often confusing debate and to explode the myths and highlight the undeniable realities. International comparisons are used to shed light on the U.S. situation.

Economics from the Ground Up
Economics 125
cross-listed: eus
This course develops economic principles through successive variations of a simple intuitive model: the economizing behavior of a single individual who struggles to survive by employing available resources to produce food and shelter. The model then becomes more complex, introducing cooperation and exchange among persons and analyzing markets, prices, property rights, externalities, public goods, and the economic functions of government. This course is a suitable alternative to Economics 101, especially for students majoring in environmental or political studies, human rights, and related fields. Prerequisite: Mathematics 110 or the equivalent.

Money and Banking
Economics 200
This course examines the role of money and financial intermediaries in determining aggregate economic activity. Interactions of savers, investors, and regulatory authorities in domestic and international capital markets are analyzed, and the linkage between the financial system and the real economy is traced. The functions of central banks, commercial banks, securities dealers, and other intermediaries are covered in detail. The debate over the goals, tools, indicators, and effectiveness of monetary policy is considered in light of current economic problems. Prerequisite: Economics 101 or 102.

Intermediate Microeconomics: Efficiency, Equity, and the Structure of Markets
Economics 201
This course further develops principles and analytical methods introduced in Economics 101. The positive and normative characteristics of alternative market structures—perfect competition, monopolistic competition, oligopoly, pure monopoly, and, in resource markets, monopsony—are studied in depth. Market forces are examined in the context of social and political institutions that shape, and are shaped by, market outcomes. The alleged “trade-off” between equity and efficiency is debated. Prerequisites: Economics 101 and one semester of calculus.

Intermediate Macroeconomics
Economics 202
cross-listed: gis, social policy
This course, a continuation of the introductory macroeconomics course, acquaints students with the main models that macroeconomists use to analyze the way economies behave. Students consider the models that explain long-run economic growth; examine economic theories that explain the periods of recessions and booms that occur on a regular basis; and investigate the role of governments in affecting the long- and short-run economic prospects of their countries. Theoretical knowledge is applied to a range of current economic issues. Prerequisite: Economics 102.

Seminar: National Economic Policy
Economics 204
cross-listed: social policy
This course examines selected macroeconomic policies employed in the United States and around the world to address issues of unemployment, poverty, inflation, and economic instability. Often policy decisions are guided by more than economic theory—by political considerations, national interests, social concerns, and global trends. Students analyze the confluence of these forces and the institutions and structures that enable them, and investigate the macroeconomic impact of these policies and identify those that are viable and sustainable. Prerequisite: Economics 102 or 202.

Introduction to Mathematical Economics
Economics 205
An introduction to the use of elementary calculus and linear algebra in economic theory. This course provides the basic mathematical skills necessary to approach the professional economics literature. Emphasis is on formulating economic problems and building economic models in mathematical language. Applications are based upon simple micro- and macroeconomic models. Prerequisites: Economics 101 or 102 and calculus.

History of Economic Thought I
Economics 210
cross-listed: gis, sts
A survey of the early history of economics. Among the subjects considered are the ideas of Hume, Locke, Smith, Malthus, and Mill, and the attacks on existing politico-economic institutions by Marx and George. This course focuses on the period up to the late 19th century, when classical political economy gave way to the “marginal revolution,” which, applying the mathematical insights of calculus to economic questions, focused more on subjective choice and less on political issues and institutions. Prerequisite: one economics course.

Comparative Economic Systems
Economics 212
Beginning with an economic analysis of the traditional market system, this course investigates models that have presented alternatives to the market economy: central planning, the socialist market economy, and a “mixed” economic system. Case studies of contemporary economies are examined theoretically and empirically. Prerequisite: one economics course; 210 is recommended but not required.

International Economics
Economics 213
Topics covered in this course include analysis of international trade and financial relationships; recent problems and developments in world commercial, monetary, and financial policy; and the economic aspects of international cooperation. Prerequisites: Economics 101 and 102.

Economic Transition from Socialism to a Market-Based System
Economics 214
cross-listed: gis, human rights, political studies, res
This course examines the collapse of the socialist system in the former Soviet Union and the transition of Soviet bloc countries to marketbased economies. It analyzes economic challenges associated with the transition process, and policy tools that have been developed to meet them. Topics include privatization, price liberalization, inflation, and the fight against corruption, among others. Emphases are placed on the impact of the economic transformation on social indicators and on future challenges faced by these countries. Prerequisite: one economics course or permission of the instructor.

American Economic History
Economics 215
cross-listed: american studies
A basic analysis of trends and events that shaped the economic development of the United States from the colonial period to contemporary times. Topics include economic aspects of the Constitution; the role of government in the economy; the rise of monopolistic corporations; income and wealth inequality; the Populist, Socialist, and Progressive movements; the growth of the welfare state from the New Deal to the War on Poverty; and the monetary system. Prerequisite: Economics 101 or 102.

European Economic History
Economics 216
An examination of the political and economic problems of countries in Eastern Europe and the former Soviet Union that are making the transition from the Soviet economic system to free-market capitalism. Necessary reforms are analyzed and merits of various proposals for making a successful transition debated. Topics include privatization of state-run enterprises, deregulation of prices and inflation, and the role of international lending institutions, among others. Prerequisite: Economics 101 or 102, or permission of the instructor.

Economic History of the World
Economics 217
This course surveys world economic history from Paleolithic times to the present. Major themes include the role of social institutions in promoting or inhibiting economic development; competition for territory and natural resources; population growth and decline; the disparity of wealth among nations; and class structure and class struggles. Topics addressed include feudal systems, colonial systems, industrialization, urbanization, globalization, transition economies, economic imperialism, and environmental impacts of economic activity. Prerequisite: one economics course.

Economic History of Modern Asia
Economics 218
cross-listed: asian studies, gis
An analytical examination of important historical events and circumstances that shaped the economic landscape of Asia in the 20th century. Topics include colonialism and economic dependency, the impact of the World Wars, and postindependence nation building. The evolution of economic development strategies such as import-substituting industrialization, national planning, export-led growth, regional integration, and globalization is studied. The impact of history, geography, and institutions on economic activity is emphasized. Prerequisite: Economics 101 or 102, or permission of the instructor.

Economic History of Central Asia
Economics 219
cross-listed: asian studies, gis, res
Central Asia has attracted attention in recent years due to its vast reserves of oil and natural gas and geographic proximity to Russia, China, and Afghanistan. Yet little is known about the region, which includes Mongolia and five countries of the former Soviet Union (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan). This course explores the economic history of Central Asia from early times until today. Themes include the economic effect of the Silk Road; the lasting influence of Genghis Khan; and the challenges that Central Asia faces today.

Economics of Developing Countries
Economics 221
cross-listed: eus, lais
This course explores the economic conditions and problems faced by the majority of the people that live in the developing countries of Asia, Africa, Latin America, and the Caribbean. The concept of economic development is defined and related to ideas such as economic growth and human development. Economic theories of development are introduced, and policies designed to promote development are evaluated. Topics include the economic consequences of colonialism; poverty and income distribution; and the role of foreign capital flows. Prerequisites: Economics 101 and 102.

The Economics of the Family
Economics 224
cross-listed: gss
This course extends the basic economic model of decision making to study some of the more interesting choices one makes in life. Topics covered are dating and mating, childbearing, household behavior, the allocation of time, marital dissolution, religion, health, death, and intergenerational relations. Also discussed are such issues as prostitution and the recent decline of marriage rates; the effects of sex education and the socioeconomic consequences of teen childbearing; and the division of labor in households. Prerequisite: Economics 101 or permission of instructor.

Urban and Regional Economics
Economics 226
cross-listed: american studies, eus, social policy, sts
An introduction to the economic analysis of the spatial distribution of human behavior. The spatial structure of cities and of regional systems of cities is analyzed from the perspective of central place theory, a microeconomic theory of location that complements a historical review of patterns of urbanization and sprawl. Contemporary urban problems are also examined from an economic point of view, and issues of urban planning and policy are debated. Prerequisite: Economics 101.

Statistics
Economics 229
cross-listed: eus, gis
The first of a two-course series designed to examine empirical economics, and a prerequisite for Economics 329, Econometrics. Basic concepts of statistics, probability, probability distributions, random variables, correlation, and simple regression are introduced; the techniques of statistical inference hypothesis testing are developed. Prerequisite: Economics 101 or 102.

Topics in Labor Economics
Economics 235
cross-listed: american studies, gss
This course focuses on the economic forces and public policies that affect employment and wages. Topics include labor demand and supply, minimum wage laws, theories of unemployment, job search and matching models, family and life-cycle decision making, efficiency wage theory, compensating wage differentials, worker mobility and migration, unions, and discrimination. Prerequisite: Economics 101.

Economics of the Public Sector
Economics 237
cross-listed: american studies, eus, social policy
This course introduces the two branches of traditional public finance, corresponding to the two sides of the government budget—revenue and spending. On the spending side, we survey the economic rationales for the existence of government and for its intervention in the economy, and the economic consequences of government expenditures. On the revenue side, we examine the problem of efficient pricing of public sector output; the consequences of alternative tax structures for the distribution of wealth; and approaches to the economics of collective action. Prerequisite: Economics 101.

Public Choice
Economics 238
cross-listed: eus
Economics is the science of human choice, and “public choice” is the study of decisions that are made collectively—by clubs, organizations, alliances, and governments. Public choice theory attempts to model the interactions among alternative fiscal institutions, alternative political institutions, and the private and public behavior of persons and groups. Applications to collective decisions at various scales are considered, with a focus on problems of environmental protection and ecosystem management. Prerequisite: Economics 101.

Environmental Economics
Economics 242
cross-listed: eus
An examination of the interrelationships between economic and ecological systems. The standard neoclassical analysis of pollution as a consequence of externality and market failure is developed, conditions for efficient resource use and waste disposal are identified, and rationales for public management of environmental resources are examined. Conventional policy solutions are evaluated, with a focus on U.S. environmental policy, and orthodox analysis of environmental problems is contrasted with alternative interpretations. Of special interest are questions of land tenure and entitlement. Prerequisite: Economics 102.

Law and Economics
Economics 252
cross-listed: human rights
The economic approach focuses on the choices people make in the context of given opportunities and constraints, and on how they respond to changes in incentives. This course applies economic principles to study the incentive effects that legal sanctions have on human behavior. Four areas of law are analyzed: property law, contracts, torts, and the concept of crime and punishment. Prerequisites: Economics 101 and at least one additional course in microeconomic theory or applications.

Women, Men, and Work
Economics 253
An examination of historical and contemporary work experiences of minority groups in the United States. Gender issues are addressed domestically and internationally, and the opportunities of women in developed countries are compared with those of women in developing countries, focusing on fertility, breast-feeding, nutrition, and labor force participation. Prerequisite: Economics 102.

Feminist Economics
Economics 254
cross-listed: american studies, gss
This course reexamines economics by looking at traditional theories through a feminist lens. Emerging feminist approaches challenge the currently used framework of economic analysis, at both the micro and macro levels, for omitting the crucial analytical category of gender. Topics include feminist critiques of economic theories: “engendering” the economic question per se; the importance of reconceptualizing the economy as a three-sector model—household, market, and government; and contemporary labor market issues and policies, including wage gap, comparable worth, discrimination, and affirmative action; among others.

Religion and Economics
Economics 260
cross-listed: human rights, religion
This course analyzes the relationship between religion and economic development. It examines the impact that religion and religious thinking have had on the formation of economic order in societies. Topics include the role that monotheism has played in the development of economic ethics; the impact of the Templars on the development of financial institutions in Europe; the economic history of Russian Old Believers; and how the lack of economic opportunities in the Middle East may have helped to foster terrorism.

Population Economics and Demography
Economics 263
Theories and measures of population as they pertain to economic and social spheres are developed and evaluated, from Malthus and Marx to Simon and Easterlin. Particular attention is paid to current population issues, such as fertility control, famine, and migration. Both domestic and international population policies are treated. Math skills at the precalculus level are helpful. Prerequisite: Economics 102.

Community-Based Development: Development from the Ground Up
Economics 265
cross-listed: asian studies, eus, gis, human rights, sts
This course critically examines the concept and practice of community-based development as an alternative to the top-down theories and policies of development. Conceptualizations of well-being in Buddhist and Gandhian thinking are considered to highlight the cross-cultural differences in what constitutes a “good life.” Students gain a broader definition of development as economic, social, and political empowerment. Throughout the course, the relationship of community-based development with ecological sustainability and political decentralization is highlighted. Prerequisite: Economy 101 or permission of instructor.

Game Theory: Understanding Strategic Interaction
Economics 270
cross-listed: eus, political studies
Game theory is about situations of strategic interaction, where the best strategy of a player is dependent on the strategies adopted by other players. This interdependence of action leads to circular chains of reasoning, which can be “cut” by using game-theoretic concepts such as dominance, Nash equilibria, and perfect Bayesian equilibria. Throughout the course these concepts are conveyed by using examples from economics, politics, environmental studies, business, and biology, and from real life. Prerequisites: precalculus and permission of instructor.

Health, Welfare, and Social Insurance
Economics 280
cross-listed: social policy
Sixty percent of U.S. federal government spending is on health, welfare, and retirement/disability insurance. What are the economic reasons for and against government intervention in these areas? Medicaid, Medicare, welfare, and Social Security have all undergone sweeping changes in recent years, with more changes on the horizon. This course examines major social programs from an economist’s perspective. It develops theoretical models of individual behavior and market failure, and applies these models to U.S. policies as well as to other countries. Prerequisite: Economics 101.

Economics of Sports
Economics 285
Economics is about the choices made by individuals, firms, and governments to cope with scarce resources. In sports, the behaviors of consumers, athletes, teams, leagues, and cities are public knowledge, and in this context we can see whether those behaviors follow patterns predicted by economic theory. Some topics covered are the impact of monopolies, cartels, and other forms of cooperation; the relationship between cities and their teams; the costs and benefits of sports franchises; and how player salaries are determined. Prerequisite: Economics 101.

Foundations of Finance and Investments
Economics 291
cross-listed: economics and finance
This course explores the foundations of the pricing of financial instruments and the structure and organization of financial markets. Methods will be developed to analyze and measure financial performance, price stocks and bonds, evaluate portfolios, and understand financial derivatives as these relate to financial data. Additional topics include the investment decision-making process, trading practices, risk assessment, and diversification. The course involves a substantial amount of statistical analysis and calculation, but no prior knowledge of statistics is required.

Topics in Microeconomics
Economics 301
An analysis of theories of price determination and allocation of resources by the market; factor prices, income distribution, and poverty; effects of monopoly and imperfect competition; and problems of the consumer society, public goods, and social welfare.

Topics in Macroeconomics
Economics 302
cross-listed: gis
An examination of advanced topics in macroeconomics. The foundations of macroeconomic theory are studied, and alternative approaches to economic growth, distribution, increasing returns, and endogenous change are analyzed. Monetary and financial aspects of macro foundations are discussed, focusing on the work of Minsky, Tobin, Sargent, Lucas, post-Keynesians, neo-Keynesians, new Keynesians, and neo-Ricardians. Prerequisites: Economics 102 and 202.

History of Economic Thought II: Neoclassical and Keynesian Economics
Economics 310
An examination of the development of economic thought through the past century, beginning with Alfred Marshall, originator of the graphical analysis of demand and supply. In-depth coverage is given to the emergence of the now dominant neoclassical (anticlassical) school of economic thought and the Keynesian revolution in macroeconomic theory and policy after 1936. Prerequisite: one economics course; 210 is recommended but not required.

Industrial Organization
Economics 317
This course covers industrial organization, from traditional ideas to ideas on the frontier of economic research. The traditional literature addresses the industrial structure of the U.S. economy and antitrust policy, monopolies, and anticompetitive behavior. More recent work examines the structure of firms, markets, and organizations. Other topics include vertical integration and coordination, product differentiation and patents, auctions and bidding, and theories of advertising. The theory is examined in the context of real-world situations, both current and historical. Prerequisite: Economics 202.

Topics in International Trade and Finance
Economics 323
cross-listed: gis, social policy
An examination of advanced topics in international economics using theory and empirical evidence. Recent theoretical advances in understanding trade under imperfect competition, strategic trade, political economy of trade policy, and international policy coordination are discussed. Classical, neoclassical, and modern theories are used to analyze important policy issues such as the effect of trade on economic growth and income distribution, international movements of labor and capital, crises in emerging markets, preferential trade agreements, and imbalances in agricultural trade. Prerequisites: Economics 101 and 102.

Open-Economy Economics and International Finance
Economics 325
cross-listed: gis
This course analyzes the variables that characterize open economies, including the balance of payments, foreign exchange regimes, and international capital movements, among others. Careful attention is paid to the relationship between them and to the impact of macroeconomic policies on these variables. Also covered is the history of the international monetary system. Prerequisites: Economics 101 and 102.

Econometrics
Economics 329
cross-listed: gis, social policy
Econometrics is the artful blending of economic theory with statistics. Economic theory helps develop behavioral hypotheses, while statistics help test these hypotheses. For example, consumer theory sees an inverse relationship between price and quantity consumed; econometrics determines whether consumers actually behave in this way. The proper use of statistical tools, such as linear regression, multivariate regression, and hypothesis testing, is covered. Students apply these tools to a variety of economic issues, including estimating production and cost functions. Prerequisites: Economics 101 and 102.

Seminar in Geoclassical Economics
Economics 330
cross-listed: eus
This seminar reviews the literature of geoclassical economics from its roots in George, Locke, Quesnay, Ricardo, and Smith to the recently published work of Gaffney, Stiglitz, Tideman, Vickrey, and others. The geoclassical tradition studies the role of land tenure and related property institutions in shaping social, political, and economic life; its research agenda includes economic applications to environmental issues, urban problems, economic cycles, and tax policy, among other things. Prerequisites: Economics 102 and either 101 or 115. Moderated environmental and urban studies students may enroll with permission of instructor.

Labor Economics
Economics 335
This course focuses on the economic forces and public policies that affect employment and wages, and examines theoretical models of labor markets and how well they hold up to real-world empirical data. Topics emphasized include labor demand and supply, minimum wage laws, theories of unemployment, job search and matching models, family and life-cycle decision making, human capital, efficiency wage theory, compensating wage differentials, worker mobility and migration, unions, and discrimination. Prerequisite: Economics 101.

Economics of State and Local Government
Economics 337
An exploration of the economic structure and functions of local and state governments in a federal system, with a focus on the United States. Topics include local public goods; public choice; fiscal federalism; taxes and revenues; demand, supply, and pricing of state and local services; public education; transportation; the budget process; regional development; and assorted policy issues. Prerequisites: Economics 101, 202, and 237.

Collective Decisions
Economics 356
cross-listed: eus
The course first defines a collective decision, then classifies and evaluates the modes of collective decision making. It then develops the idea that while the possible ways in which citizens may vote are much more varied than might be expected, it is important to understand what voting cannot do in order to derive the most benefits from it. The limitations of voting are developed through discussions of cycles, the Arrow theorem, and the Gibbard-Satterthwaite theorem. Prerequisite: eligibility for Q courses.

Topics in Economic Theory and Methodology
Economics 370
An introduction to historical and contemporary views of the methodology and philosophy of economic science. Works of Popper, Mill, Cairnes, Robbins, Hutchison, Friedman, Hayek, Caldwell, Blaug, and others are reviewed. Topics include normative versus positive science; induction and deduction; positivism and falsification; the role of assumptions in economic theory; and the nature of economic discourse. The focus is on a methodological appraisal of the neoclassical research program. Prerequisites: Economics 201 or 202, and 210.

Health Economics
Economics 386
cross-listed: social policy, sts
This course applies economic tools to an understanding of the peculiar features of health care and related markets. It reviews the demand and supply for health outputs and considers various methods for measuring the costs and benefits of health outcomes. Subsequent topics addressed include the information asymmetries in health services and insurance; the market for private health insurance (including managed care); and reasons for and effects of social insurance programs, among others.

Seminar in Contemporary Developments of Finance
Economics 390
This seminar contrasts the academic analysis of financial economics with the coverage it receives in the news media. The news stories are almost always connected with people; yet traditional finance theories concentrate on efficient markets, predictable prices that are determined by the concepts of present value, rates of return, and analysis and pricing of computable risks—human behavior has no place in the theory. This course challenges that view, examining the influence of economic psychology in the decision-making process of various agents and in market dynamics. Prerequisites: Economics 101 and 102 or permission of the instructor.

Beyond Neoclassical Economics: Heterodox Approaches to Economic Theory
Economics 399
A critical survey of several schools of thought that challenge the mainstream neoclassical school. Approaches encountered include the Austrian, institutionalist, feminist, humanist, geoclassical, foundationalist, postmodern Marxist, and Virginia schools of economic thought. An examination of their various research agendas, methodologies, ideologies, principles, values, and factual claims throws fresh light on the strengths and weaknesses of the dominant paradigm itself. Prerequisites: Economics 201, 202, and 210.

Economics Senior Conference
Economics 401-402
Students writing Senior Projects in economics are required to attend the Senior Conference, which meets not more frequently than one evening every two weeks throughout the fall and spring terms. All core faculty of the Economics Program participate. Not for credit.