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Department of Economics
Undergraduate Guide
I. INTRODUCTION
This pamphlet provides detailed information about the economics major and minor. Section II briefly describes the usefulness of an economics degree. Section III details courses required for an A.B. in Economics, and the steps for declaring a major. The Honors Program and the Minor in Economics are outlined in Sections IV and V, respectively. A variety of topics of interest to economics students follow, including study abroad, transfer credit, the A.B./M.A. degree, and internship and career-planning information. We conclude with course descriptions, a list of faculty, and the schedule of course offerings for the coming semester.
If you have questions about a departmental policy or questions about how to get started in economics, please contact the staff in the economics office, Eliot Hall, room 205, 935-5670. You may also contact Dorothy Petersen, the Academic Coordinator in Economics. Her office is in Eliot Hall, room 201, and her email address is dottie@wustl.edu. The Director of Undergraduate Studies is Professor Steve Fazzari, and his email address is fazz@wustl.edu.
II. WHY ECONOMICS?
Many, if not most, of the nation's and the world's most significant social problems have an economic dimension. Microeconomics provides the tools to analyze the trade-offs that individuals, firms, and governments confront because of limited resources. It considers the choices that are made, the social context in which they take place and the implications for human welfare. Economists apply these tools to study a wide range of controversial public policy questions, including environmental regulation, government restrictions on domestic and international markets, the structure of the legal system and the design of tax policy. Macroeconomics explores the sources of economic growth and the causes of recessions and inflation. Macroeconomic analysis assesses monetary policy, explains the performance of financial markets, and considers international trade and financial links.
The study of economics is an excellent way to acquire problem-solving skills and develop a logical, ordered way of looking at problems. It leads naturally to careers in business, law, and in economics research and consulting.
Economics is a standard pre-business major, because it provides insight into the operation of individual markets for goods and services, financial markets, and the global economic system, and because it provides the quantitative and analytical skills that enable students to succeed in a wide variety of business activities.
Many law schools view economics as one of the best undergraduate majors because of its disciplined approach to the analysis of social issues. Some of our economics courses also relate specifically to legal issues.
Careers in economics research or consulting require graduate work leading to either an M.A. or (more usually) a Ph.D. About half of all economists with graduate training teach at the college level. The other half is employed either in the business sector or works for the government. The demand for economists in the business and government sector is strong. Graduate work in economics requires extensive course work in mathematics and statistics to complement the economics major. See further discussion in Section XI.C below.
III. The Economics Major
A. Declaring an Economics Major
To declare economics as a (first or second) major, fill out a major declaration form available from either the College of Arts & Sciences Office in South Brookings Hall or the Economics Department Office in Eliot Hall, Room 205. Bring the completed form and an unofficial transcript (i.e., a student record printout) to the Economics department office. The undergraduate administrative assistant will assign a faculty advisor to the student. Students may request a particular faculty member as an advisor. The Department will try to meet this request, but we are not always able to do so because some of our faculty have a large number of advisees. The student normally retains the same advisor in subsequent years.
B. Major Requirements
The requirements for a major in economics are:
1.
Econ 103B, Introduction to Political Economy: Microeconomics and Econ 104B, Introduction to Political Economy: Macroeconomics. These introductory courses can be taken in any order, typically during a student’s freshman or sophomore year.
2.
Six advanced economics courses which must include:
a) Econ 401, Price Theory, and Econ 402, Income and Employment Theory
b) Four 300- and 400-level elective classes (each having at least Econ 103B and/or 104B as a prerequisite). At least two of these classes must have Econ 401 and/or Econ 402 as a prerequisite.
3.
Math 131, or an equivalent Calculus I course (or credit). This course is a prerequisite for Econ 401 and Econ 402.
4. Math 2200, or another statistics course, such as Math 3200 or ESE 326. This course is a prerequisite for Econ 413. Please refer to Notes (viii) and (x), below. Also, please refer to “Stipulation 3” in Section VII (Transfer Credit), below.
Notes (Please read carefully):
(i) Econ 413 (econometrics) is not a requirement for the major but is strongly recommended. As noted in Section IV, honors candidates must take Econ 413 prior to the spring semester of their junior year. Additionally, Econ 413 is a prerequisite for Econ 471, Econ 487, and Econ 4155.
(ii) Majors must take all required courses, including calculus and statistics, for a letter grade, not Credit/No Credit. To count toward the major, students must receive a grade of C- or better in all courses required for the major. Students who have taken Econ 103B or 104B with the Credit/No Credit option prior to deciding on an economics major should consult with the department’s Academic coordinator.
(iii) Students are advised to take the statistics course before they start taking advanced economics beyond 401 and 402.
(iv) 200-level economics courses, Econ 4551, 488, 490, 496, 497, 498 and 499 may not be used to satisfy major requirements.
(v) Typically, economics courses from University College may not be used to satisfy major requirements. There are, however, some exceptions. First, occasionally there are courses in University College that have Econ 103 or 104 prerequisites and are cross-listed with the Economics Department. Such courses count as 300-level elective courses. Second, Calculus, Econ 103B, and Econ 104B can all be taken in University College; but majors and minors need to be mindful of the maximum allowable transfer credits. See the discussion of transfer credit in Section VII for more information.
(vi) Econ 401, Econ 402, and the two required 401/402 prerequisite electives must be taken through the Washington University Economics department during the regular academic year (i.e., Fall and Spring semesters). University College and Washington University Summer School courses may not be used to fulfill the requirements for 401, 402 or the two courses with 401/402 prerequisites. Washington University Summer School courses 303 and 304 do not satisfy any major requirement.
(vii) Transfer courses from other schools that qualify for Arts and Sciences credit may be used to
replace Economics 103B, 104B, and Math 131; but majors and minors need to be mindful of the maximum allowable transfer credits. See the discussion of transfer credit in Section VII for more information.
(viii) Transfer courses may be used to satisfy advanced economics requirements (300-level or above) and the statistics requirement (Math 2200) only with the written approval of the Academic Coordinator. Majors and minors need to be mindful of the maximum allowable transfer credits. See the discussion of transfer credit in Section VII for more information. See also Section VI for a discussion about coordinating an economics major with study abroad.
(ix)
Students from the John M. Olin School of Business who are completing a second major, or a minor, in Economics may use MEC 290 to replace Econ 103. Students who take MEC 290 also have the option of skipping Econ 401, but any student who does this must take an additional economics elective having an Econ 401 prerequisite. Consult with your academic advisor or the Academic Coordinator as to whether this option makes sense for you. Majors can substitute MEC 292 for Econ 104, but cannot skip Econ 402. Minors can substitute MEC 292 for Econ 104 only if they also take Econ 402.
(x) For Olin students, QBA 120 and 121 can be used to fulfill the statistics requirement (i.e., Math 2200) and Math 127 and 128 can be used to fulfill the calculus requirement (i.e., Math 131). Note that students considering an advanced degree in economics, finance, or related fields should be taking math courses beyond Calculus I, and should therefore take Math 131 rather than Math 127/128. See Section XI.C for further details.
C. Typical Academic Plans for Economics Majors
Most students find it easy to fulfill the economics major requirements in their four undergraduate years by following a simple four-year plan such as the following.
•
Freshman year: Econ 103B and Econ 104B; Math 131 (or higher level calculus course).
•
Sophomore year: Econ 401 in the fall semester; Econ 402 in the spring semester. Math 2200 (statistics) should be taken this year (particularly for students anticipating participation in the Honors Program) or during the junior year.
•
Junior and Senior years: Complete the 4 advanced economics electives. Ideally, students should complete their economics electives by the fall semester of the senior year.
A student who has special circumstances, such as anticipating participation in the Honors Program, study abroad, application to the joint A.B./M.A. program or to a Ph.D. program, or a late start in economics should consult with their economics advisor and/or the Academic Coordinator for appropriate course sequencing. Additional information can be found in the following Sections: IV (honors)., VI (study abroad)., VIII (A.B./M.A.), and XI.C (graduate school).
IV. THE HONORS PROGRAM
To receive Latin honors (cum laude, magna cum laude, or summa cum laude), economics majors must participate in the Honors Program. To be considered for the program, students must have completed the following by the mid-point of their junior year: Econ 103B, 104B, 401, 402, 413, and one elective having 401 and/or 402 as a prerequisite. A student may take Econ 413 or an advanced (401/402 prerequisite) elective (401/402 prerequisite) in the spring of the junior year and still be admitted to the Honors Program; but this requires a petition to the Director of Undergraduate Studies (see below).
The Honors Program consists of two tracks. A student may elect to meet the requirements for “Honors in
Economics” or to meet the requirements for “Honors in Economics with Distinction.” Throughout this discussion, as in the rest of this Guide, “successful completion” means taking a course for a letter grade and receiving a C- or better in the course.
The requirements for graduation with “Honors in Economics” are:
1.
An overall GPA of 3.5 or higher through the mid-point of the senior year.
2.
Successful completion of Econ 413, “Introduction to Econometrics.”
3.
Successful completion of two additional economics electives having 401 and/or 402 as a prerequisite. In other words, to obtain “Honors in Economics,” students will complete four 401/402 prerequisite electives for the Honors Program, rather than the two required for the major.
a) The major requirements and (at least) one of the two additional 401/402 prerequisite electives must be completed by the end of the fall semester of the senior year.
The requirements for graduation with “Honors in Economics with Distinction” are:
1.
An overall GPA of 3.5 or higher through the mid-point of the senior year.
2.
Successful completion of Econ 413, “Introduction to Econometrics.”
3.
Successful completion of an Honors Thesis by taking Econ 498 and earning at least a B in the course.
4.
Completion of the major requirements by the end of the Fall semester of the senior year.
5.
Participation in the following:
a) The Honors Conference in February/March of the junior year (except for those studying abroad).
b) Defense of the Honors Thesis with faculty in January/February of the senior year.
c) The Honors Conference in February/March of the senior year.
Admission into either track of the Honors Program requires a GPA of at least a 3.5, both overall and within economics through the end of the junior year. Admission into the “Honors in Economics with Distinction” track is particularly selective because the number of positions is limited. Both grades and the rigor of the student’s courses are considered.
Notes (Please read carefully):
Notes (Please read carefully):
(i)
Only students who participate in the “Honors in Economics with Distinction” program track will be eligible for departmental prizes. Awarded prizes are noted on a student’s transcript.
(ii)
For a particularly well-written (but not department prize-winning) thesis, a student participating in the “Honors in Economics with Distinction” track may receive an additional notation on their transcript and diploma which reads “Distinction in Economics.”
(iii)
Three levels of honors are possible: cum laude, magna cum laude, and summa cum laude. The Department recommends a level of honors to the Dean of the College of Arts and Sciences, who makes the final decisions about Latin honors.
a. The Department’s recommendation for students who participate in the “Honors in Economics” track will depend on the student’s grades, particularly in the advanced electives.
b. The Department’s recommendation for students who participate in the “Honors in Economics with Distinction” track depends on the student’s grades and performance in Econ 498, the thesis defense and the Honors Conference.
(iv)
Students who believe they may qualify for honors and who are abroad in their junior year should inform their advisor and the Director of Undergraduate Studies to assure that their records are appropriately evaluated.
(v)
Students not invited to the “Honors in Economics with Distinction” track can petition to be admitted. Permission will be granted by the Director of Undergraduate Studies on a space available basis.
(vi)
Students completing Econ 413 or an advanced (401/402 prerequisite) elective in the spring of their junior year can petition to join the Honors Program. Permission will be granted by the Director of Undergraduate Studies on a space available basis.
(vii)
The “Honors in Economics with Distinction” track cannot be completed in time for a December graduation. Students participating in this track must, therefore, graduate in May. But, Honors students do not have to be officially in residence, paying tuition, during the spring semester of their senior year.
(viii)
It is possible for a student electing the “Honors in Economics” track to graduate in December of the senior year.
(ix)
Students invited to participate in the Honors Program will be invited to join the National Honorary Society in economics, Omicron Delta Epsilon. The activities of the Washington University chapter are the responsibility of the students with the assistance of a faculty advisor.
V. THE ECONOMICS MINOR
A. Minor Requirements
At least five economics courses are required for the minor, and there are three minor “tracks,” as described below.
•
The General Minor: Econ 103B, 104B, 401, 402 and one additional course having at least Econ 103B and/or 104B as a prerequisite.
•
The Applied Micro Minor: Econ 103B; 104B; 401; one elective having Econ 401 as a prerequisite; and one elective having at least Econ 103B and/or 104B as a prerequisite.
•
The Applied Macro Minor: Econ 103B; 104B; 402; one elective having Econ 402 as a prerequisite; and one elective having at least Econ 103B and/or 104B as a prerequisite.
In addition to the courses listed above, the minor requires the completion of Math 131, or an equivalent calculus course, as Math 131 is a prerequisite for Econ 401 and Econ 402.
B. Declaring an Economics Minor
To declare a minor in Economics, a student should complete a minor declaration form available from either the Dean’s office of the College in which the student is enrolled (i.e., Arts & Sciences, Engineering, Business…) or the Economics Department office in Eliot Hall, Room 205. This form details courses completed and to be taken and the minor “track” the student plans to complete. The form must be signed by the student’s major advisor. Bring the completed form and an unofficial transcript (i.e., a student record printout) to the Economics department office. The undergraduate administrative assistant will assign a faculty advisor to the student. Students may request a particular faculty member as an advisor. The Department will try to meet this request, but we are not always able to do so because some of our faculty have a large number of advisees. The student normally retains the same advisor in subsequent years. The form is then returned to the Dean of the College in which you are enrolled.
For further advice on the undergraduate minor in Economics, please consult the Undergraduate Administrative Assistant in the Economics department office or the Academic Coordinator.
Notes (Please read carefully):
(i)
Minors must take the required economics courses and calculus for a letter grade, not Credit / No Credit. (Students who have taken Econ 103B or 104B with the Credit / No Credit option prior to deciding to declare an economics minor should see the department’s Academic Coordinator.) To count toward the minor, you must receive a grade of C- or better in the required economics courses.
(ii)
Typically, economics courses from University College may not be used to satisfy minor requirements. There are, however, some exceptions. First, there are some courses in University College that have Econ 103 or 104 prerequisites and are cross-listed with the Economics
Department. Such courses count as 300-level courses. Second, Calculus, Econ 103B, and Econ 104B can all be taken in University College; but minors need to be mindful of the maximum allowable transfer credits. See the discussion of transfer credit in Section VII for more information.
(iii)
200-level economics courses, Econ 4551, 488, 490, 496, 497, 498 and 499 may not be used to satisfy major requirements.
(iv)
Econ 401, Econ 402, and/or the required 401/402 prerequisite elective must be taken through the Washington University Economics department during the regular academic year (i.e., Fall and Spring semesters). University College and Washington University Summer School courses may not be used to fulfill the requirements for 401, 402 or the course with 401/402 prerequisites. Washington University Summer School courses 303 and 304 do not satisfy any minor requirement.
(v)
Transfer courses from other schools that qualify for Arts and Sciences credit may be used to replace Economics 103B, 104B, and Math 131; but minors need to be mindful of the maximum allowable transfer credits. See the discussion of transfer credit in Section VII for more information.
(vi)
Transfer courses may be used to satisfy advanced economics requirements (300-level or above) only with the written approval of the Academic Coordinator. Minors need to be mindful of the maximum allowable transfer credits. See the discussion of transfer credit in Section VII for more information. The Study Abroad section (Section VI) may also be relevant.
(vii)
Students from the John M. Olin School of Business who are completing a minor in Economics should refer to Notes (ix) and (x) above, on page 4 of this guide.
VI. STUDY ABROAD
The Economics Department views study abroad as highly desirable and strongly encourages Economics majors to consider it. Students interested in Study Abroad should keep in mind the following.
•WU Economics has a new exchange program with Bocconi in Milan, Italy. The program is fall semester only. Although classes at Bocconi are taught in English, students interested in the program must take a year of Italian.
• For students interested in studying in an English language country, the preferred options are University College London, the London School of Economics (LSE), Oxford, and Auckland (New Zealand). LSE is one year only, and students must sit for exams in the third trimester to receive academic transfer credit at WU. (Similar rules apply to any other year-long programs abroad where there is an option to take exams at the end of the year. )
• For many overseas programs, all or nearly all economics electives have effective 401 or 402 prerequisites. For such programs, therefore, students should take 401 and 402 before going abroad. A few programs are more flexible. Consult with the Academic Coordinator for details.
• Students can do both study abroad and honors provided they start early, plan carefully, and get the necessary prerequisites out of the way. Consult with your advisor and the Academic Coordinator immediately.
• Similarly, students can do study abroad and prepare for application to economics Ph.D. programs, but again this requires an early start and careful planning.
For procedures and available programs, visit the Overseas Programs website http://www.artsci.wustl.edu/%7Eoverseas/overseas.html. Talk to your advisor and the Academic Coordinator for additional information about specific programs.
Majors who study abroad are subject to the same ceiling of 6 units of overall economics transfer credit that applies to all economics majors. (See the next section for further details.) Thus, for example, if you have already transferred introductory micro and macro from another school then you will not be able to transfer additional economics credit from study abroad. (You may, however, still take calculus and statistics abroad, provided these courses meet the approval of the Academic Coordinator.) Students who study abroad do, however, have some extra flexibility.
First, students who study abroad for one semester may apply up to two economics classes toward the major requirement of two 300-level electives (in contrast, the normal limit is one such class). In practice, study abroad economics electives are often higher than 300 level (400-level or even grad level), but the department counts these courses as 300-level for the purpose of major requirements.
Second, students who study abroad for a year may use study abroad coursework to fulfill either the 401 or 402 requirement (but not both). Note that the Economics department allows 401 or 402 transfers only from a select group of study abroad programs, and students must file a petition with the Academic Coordinator. Students who take 401 or 402 abroad must take an additional 400-level class at WU. All majors must take four 400 level courses from the WU Economics department during the regular term. (400 level means 401, 402, or any class with a 401 or 402 prerequisite.)
For a class taken on a study abroad program to count toward the major, it must be at least 300-level and be taught in an economics department. Students must verify with the Academic Coordinator that a course potentially qualifies before taking the course. The Academic Coordinator will then evaluate the course after the student returns. The student should be prepared to present the course syllabus, documenting the course prerequisites, as well course materials (homework, exams). To get transfer credit, the student must get the equivalent of a C- or better. See Section VII for additional discussion of transfer rules.
VII. TRANSFER CREDIT FOR COURSEWORK TAKEN OUTSIDE THE ECONOMICS DEPARTMENT AT WASHINGTON UNIVERSITY
Note that all Economics majors, including transfer students, must take at least four 400-level courses from the WU Economics department during the regular school year. All Economics minors must take both 400-level courses from the WU Economics department during the regular school year. 400-level means 401, 402, or any class with a 401 or 402 prerequisite.
A. Students entering WU as freshmen in the Fall 2005 semester (or later)
For students declaring an economics major and entering Washington University (as freshmen) in the Fall 2005 semester or after, the Economics Department will accept at most 2 economics courses (= 6 credit hours) as transfer credit from outside the Economics Department, subject to the stipulations below.
For students declaring an economics minor and entering Washington University (as freshmen) in the Fall 2005 semester or after, the Economics Department will accept at most economics course (= 3 credit hours) as transfer credit from outside the Economics Department, subject to the stipulations below.
All transfer credit requests require the written approval of the Academic Coordinator of the Economics Department, except as noted below.
“Outside the Economics Department” includes, but is not limited to, AP credit, study abroad credit, courses from the Olin School of Business, University College, etc.
STIPULATIONS (Please read carefully):
1) Advanced Placement
• An economics major or minor who receives a 4 or 5 on the Microeconomics [Macroeconomics] AP Exam may take courses that have a 103 [104] prerequisite without taking 103 [104], assuming other prerequisites, if any, are satisfied.
• An economics major or minor who receives a 5 on either the Microeconomics or the Macroeconomics AP Exam will receive 3 additional units of credit upon completing the corresponding intermediate theory class (Econ 401 in the case of a 5 on the Microeconomics AP Exam, and Econ 402 in the case of a 5 on the Macroeconomics AP Exam) with a grade of B or better.
o NOTE: The 3 credits awarded for a 5 on an AP exam constitute ½ of the total transferable credits for an economics major.
• For students who’ve earned a 5 on both the Microeconomics and Macroeconomics AP exams…
o Minors cannot apply more than 3 units of transfer credit toward the minor degree requirements. When a student has earned a 5 on both the Microeconomics and Macroeconomics AP exams and subsequently chooses to minor in economics, the limit of 3 units of transfer credit does not mean that the student must take one of the principles classes. Instead, what is necessary is that a student takes a minimum number of economics classes from the Washington University Economics department. Minors must take a minimum of 4 economics classes from WU, including two 400-level economics classes (which depend on the type of minor being earned).
o Majors cannot apply more than 6 units of transfer credit toward the major degree requirements. When a student has earned a 5 on both the Microeconomics and Macroeconomics AP exams and subsequently chooses to major in economics, the limit of 6 units of transfer credit, does not mean that the student cannot receive transfer credit from, for example, economics classes taken as part of study abroad. Instead, what is necessary is that a student takes a minimum number of economics classes from the Washington University Economics department. Majors must take a minimum of six economics classes from the WU Economics department, including four 400-level economics classes (401, 402 and the two electives having 401 and/or 402 as prerequisites).
• A student who receives a 4 on an AP exam receives no credit for the corresponding principles course. If a student has a 4 on the microeconomics AP and elects not to take Econ 103 then the student is short 3 units toward the major or minor. The student must make up these 3 units by taking a course with a prerequisite of 103 (or 401). The corresponding statement holds if the student has a 4 on the macroeconomics AP and elects not to take Econ 104.
• For students who have taken the International Baccalaureate (IB) exam in economics, the Economics Department treats an IB 6 or 7 like an AP 5 and IB 5 like an AP 4. Note that the IB covers both microeconomics and macroeconomics. As such, the student can apply the IB exam score to either Econ 103 or 104, but not both. Transfer requests pertaining to the IB exam must receive the written approval of the Academic Coordinator.
• For students who have taken the British A-level exam (Cambridge exams) in economics, the Economics Department treats a grade of “A” like an AP 5 and a grade of “B” like an AP 4. Note that this exam covers both microeconomics and macroeconomics. As such, the student can apply the British A-level exam to either Econ 103 or 104, but not both. Transfer requests pertaining to this exam must receive the written approval of the Academic Coordinator.
• For students who spend eight semesters on the Washington University campus, the Academic Coordinator will normally approve a maximum of one transfer course to satisfy an advanced course requirement, at the 300-level, subject to the allowable limit. Students should have an official course description and, if possible, a syllabus for the proposed transfer course. The policies described here also apply to courses taken from the Washington University Summer School and University College.
• The Department will not accept transfer or summer school courses to satisfy major or minor requirements for Econ 401, Econ 402, or courses with 401 or 402 prerequisites.
• Exceptions to these policies are granted only when there is a compelling reason why a student cannot complete the advanced courses during the fall or spring semesters at Washington University. Students should submit a petition to the Academic Coordinator.
• Special rules apply to MEC 290, taught in the John M. Olin School of Business. See Section III.B., note (ix), above (page 4).
3) Transfer credit for the statistics requirement (Math 320):
Students may use an appropriate transfer course to satisfy the statistics requirement, Math 2200, with the written approval of the Academic Coordinator, except as noted below.
• Most introductory statistics courses offered at other institutions are not adequate to satisfy this requirement. Acceptable courses must have a prerequisite of one semester of calculus. Students must have a detailed course description for any statistics course that will be approved to replace Math 2200, and approval from the Academic Coordinator is required.
• The Economics Department will accept ASTAT 330D, Math 3200, ESE 326 and the Olin School of Business’ QBA 120 and 121 as substitutes for Math 2200. Written approval for this substitution is not required.
• The Economics Department will accept PSYCH 300 as a substitute for Math 2200 for Economics and Psychology double majors ONLY. Written approval for this substitution is not required.
• The Economics Department will accept PolSci 363 (identical to ASTAT 330A) as a substitute for Math 2200 for Economics and Political Science double majors or for Economics and Political Economy double majors ONLY. Written approval for this substitution is not required.
o Students with majors or minors other than Political Science or Political Economy must consult with the Academic Coordinator prior to taking PolSci 363 / ASTAT 330A in lieu of Math 2200.
4) Transfer credit for Study Abroad:
• For students who spend one semester abroad, the Academic Coordinator will approve a maximum of two transfer courses to satisfy an advanced course requirement, at the 300-level, provided that the overseas courses have prerequisites at least as advanced as 103B and/or 104B. Note that this will “count” toward the 6 credit-hour maximum transfer limit.
o Students must document their course work with the Academic Coordinator and have earned the equivalent of at least a C- or better in order to receive transfer credit.
o Students are not permitted to transfer Econ 401, 402 or any other course as a 400-level elective.
• For students who spend a full year abroad, the department may allow a student to transfer credit for Econ 401 or 402 (but not both), but, again this counts toward the 6 credit-hour limit.
o The Economics department allows 401 or 402 transfers only from a select group of study abroad programs, and students must file a petition with the Academic Coordinator.
o Students who take 401 or 402 abroad must take an additional 400-level class at WU. All majors must take four 400 level courses from the WU Economics department during the regular term. (400 level means 401, 402, or any class with a 401 or 402 prerequisite.)
o Students must document their course work with the Academic Coordinator and have earned the equivalent of at least a C- or better in order to receive transfer credit.
B. Students entering WU as freshmen prior to the Fall 2005 semester
A student who entered Washington University as a freshman prior to the Fall 2005 semester and who subsequently declares an economics major or minor is subject to a different set of transfer credit “rules” than described above. For these students, requests for transfer credit from any other institution outside the WU Economics Department must be approved by the Academic Coordinator, except as noted above.
C. Transfer Students
• Students who transfer to Washington University in the Spring 2006 semester or later from another institution and who have sophomore standing are governed by the transfer rules stipulated above.
• Students who transfer to Washington University in the Spring 2006 semester or later from another institution but have junior standing will be dealt with on a case-by-case basis by the Academic Coordinator. Note that all Economics majors, including transfer students, must take at least four 400 level courses from the WU Economics department during the regular term. (400 level means 401, 402, or any class with a 401 or 402 prerequisite.)
VIII. THE A.B. / M.A. PROGRAM IN ECONOMICS
The Economics Department participates in a program that permits a student to receive both the undergraduate A.B. degree and the graduate M.A. degree within 4 years. Students interested in this program should consult with their Economics major advisor and the Academic Coordinator, no later than the beginning of their junior year. Only in exceptional cases will students be admitted after their fifth semester of study.
Next, to apply for the program, the student should do the following. First, confer with the Associate Dean of the College of Arts & Sciences to assure completion of the necessary procedures. Second, complete the “Statement of Intent to Engage in the Combined AB/MA Program” form, which is available in the Graduate Student Office (153 North Brookings Hall). The form must be signed by the student’s Economics major advisor and the Academic Coordinator. A copy of the form is left in the Economics Department with the Undergraduate Administrative Assistant, and then the completed and signed form is returned to the Graduate Student Office.
The requirements for the A.B. portion of the combined degree are the same as for the regular major. The requirements for the M.A. portion of the degree are as follows:
1. At least 135 units of undergraduate and/or graduate school course work, including all academic and residency requirements for the A.B. degree in Economics.
2. At least 10 additional classes from the available 400- and 500-level classes in Economics. This is 10 economics classes beyond the (minimum) 6 advanced courses required for the undergraduate major in economics.
3. The ten courses must include:
(a) Econ 501 and 503
(b) at least two other 500-level economics courses,
(c) an econometrics course from among Econ 413 and 513. An undergraduate who has taken Econ 413 need not take Econ 513. However, if Econ 413 was taken to fulfill the A.B. degree requirements, then some other 400- or 500-level economics class must be taken so that the M.A. requirement of “10 additional classes” is met.
4. All courses offered toward the graduate degree must be passed with a grade of B or better.
5. Department certification of the student’s achievement of a level of competence normally expected of candidates for the M.A. degree in economics. That involves one of the following:
(a) Successful completion (“M.A. Pass”) of the Ph.D. general examinations
• The Ph.D. general examinations (the “prelims”) consist of a 5-hour microeconomics-based exam and a 5-hour macroeconomics-based exam. A.B./M.A. students planning to take the prelims must take Econ 502 and 504 as part of their “10 additional classes.”
• The exams are given in mid-June each year, on dates to be specified by the Economics department. Students are notified of the exam dates in the late spring; typically there are 4 days between exams, with the microeconomics prelim taken first.
• A.B./M.A. students are required to take both exams, but not necessarily in the same year. For example, a student could take the microeconomics prelim in the June following their junior year, and take the macroeconomics prelim in the following June.
o A student does not need to be in residence, paying tuition, during the calendar year between taking the two exams.
o A student can elect to take the two exams during the same year.
o Any student not earning an “M.A. Pass” on the microeconomics [macroeconomics] portion of the June exam has the opportunity to retake the microeconomics [macroeconomics] portion of the prelim in the following August, at a date to be specified by the Economics Department.
o Because A.B./M.A. students are taking exams in June (or August), the M.A. degree cannot be awarded until August (or December, respectively).
(b) Or, successful completion of an M.A. essay.
• A senior Honors Thesis may not be used as the M.A. essay. The M.A. essay can be related to the senior Honors Thesis; but it must be a distinctly different paper. See the Academic Coordinator and/or the Graduate School for Graduate School Thesis guidelines.
• A.B./M.A. students who wish to write an M.A. essay must work with a faculty advisor. Finding an advisor and beginning research should be undertaken, at the latest, during the summer between the junior and senior years.
• A.B./M.A. students must defend their M.A. essay before a group of selected faculty. The defense date and the selected faculty will be arranged between the A.B./M.A. student and that student’s advisor.
IX. OPPORTUNITIES FOR INDEPENDENT STUDY AND RESEARCH
Occasionally there is an opportunity to participate in a faculty research program or to work as a research assistant for an individual faculty member. Students typically find these opportunities via discussion with the professors of their elective classes. The Academic Coordinator maintains a database of students interested in working with faculty; but networking is generally more effective. Students working for a faculty member may register for Econ 497.
Students interested in doing individual research under the supervision of a faculty member can, with a senior standing and the permission of the supervising faculty member, sign up for Econ 490, for up to 6 units.
Econ 490 and 497 cannot be used to fulfill major (or minor) requirements.
X. INTERNSHIP OPPORTUNITIES
Internships are an effective means of learning about potential careers, developing work-related skills that complement your academic background, and building a network that may serve as a point of departure when you begin to search for a full-time job. An internship can be from 7-20 hours per week during the academic year, and up to 40 hours per week during the summer. Washington University encourages every student to complete at least one internship as part of his or her undergraduate education.
To match majors with interesting internships, the Economics Department cooperates with The Career Center. Students should visit The Career Center website at www.careers.wustl.edu or stop by the office at 157 Karl Umrath Hall for a calendar of events, including workshops and special programs.
Students interested in an internship should follow the steps described on the Career Center website (http://careers.wustl.edu/ugr_students/internship.html), including a careful review of the following documents: Internship Search Strategies Handout (http://careers.wustl.edu/documents/Internship%20Search.pdf); Internship Prep Series Checklist (http://careers.wustl.edu/documents/IPS%20Checklist.pdf); Internship Prep Series FAQs (http://careers.wustl.edu/documents/IPSFAQs.pdf); Resume Review Checklist (http://careers.wustl.edu/documents/ResumeChecklist.pdf); Prepare for Your Mock Interview (http://careers.wustl.edu/documents/preparing%20for%20your%20mock%20interview.pdf)
Important: Referral to the Olin School of Business’ Weston Career Center is an option for students who are pursuing a second major or a minor in business, while majoring or minoring in economics in Arts & Sciences. You must complete the Internship Prep Series (IPS) to be eligible for a referral to Weston. Many business-related positions are cross-listed on Career Options and the Weston Career Center eRecruiting site.
Students can complete the IPS any time, but the Career Center recommends that it is completed in the fall semester so that students are ready to apply for internships right away. Students must complete the IPS in order to participate in on-campus interviews. See the Calendar of Events at www.careers.wustl.edu for dates and times and to RSVP.
Credit for Unpaid Internships:
The Department offers a course, Econ 299, for economics majors who participate in an unpaid internship. (The policies of the College of Arts and Sciences prohibit the awarding of credit for any work undertaken for pay.) You may receive up to three units of academic credit. Thirty-five (35) hours worked is equal to one unit of academic credit. To receive credit you must do the following, before your internship begins (academic credit cannot be awarded retroactively):
1) Identify a faculty sponsor. Usually, this person is your major advisor.
2) Complete the Learning Agreement found at www.careers.wustl.edu. Consult with your faculty sponsor before completing the “educational objectives” section of the form. In the “evaluation requirements” section of the form, write that you will complete an economics paper on a topic related to your internship. Typically, interns, with the help of their faculty sponsors, identify suitable paper topics about halfway through their internship. A project completed as part of the internship cannot be substituted for the Econ 299 paper, but the project may serve as a starting point for the paper. Your faculty sponsor may also impose additional requirements.
3) Bring a copy of your signed Learning Agreement to the Career Center within two weeks of starting your internship.
4) Register for Econ 299 by the semester Drop/Add date. If you intern during the summer, you may register for the credit to appear on your transcript in the following fall. Note that Econ 299 does not satisfy any of the major requirements and must be taken with the Credit / No Credit grade option.
Additional considerations:
- Internships and study abroad are two excellent experiences to plan for during your four years at WU. If you decide to study abroad, plan ahead to be sure you can also do at least one internship. For ideas and support, contact the Office of International Studies or call The Career Center at 935-5930 to make an advising appointment.
- Research experience is helpful for students who are planning to apply to graduate school. This experience may take place at Washington University or another university. For details on research opportunities available at Washington University, visit the Undergraduate Research web site (http://ur.wustl.edu ), contact Dean Henry Biggs at hbiggs@wustl.edu or visit the office itself, temporarily housed in Suite 100 Umrath Hall.
a. Research Experiences for Undergraduates (REU) are sponsored by the National Science Foundation (http://www.nsf.gov and http://www.nsf.gov/crssprgm/reu/reu_search.cfm ). These research opportunities typically require a formal application process.
- Public policy internships may be available via the Weidenbaum Center (http://wc.wustl.edu/) and/or the Gephardt Institute of Public Service (http://www.gephardtinstitute.wustl.edu/). Students majoring or minoring in Political Science should see that department’s web site for potential internships (http://polisci.wustl.edu/fset_ugrad.html). Finally, a general “google” search on “undergraduate internships in economics” might reveal something of interest.
XI. CAREER PLANNING ASSISTANCE
A. Beginning a Career with an A.B. Degree
Most Economics majors start their careers after graduation in a wide range of professions. Students who want to pursue a business career after graduation are urged to take more than the minimum mathematics and statistics courses. For instance, the department recommends at least a second semester of calculus, and recent graduates also tell us that econometrics (Econ 413) is very useful in obtaining jobs and in advancing quickly in careers.
The Career Center can help you match your interests, skills, and values with career opportunities, connect you to employers and Washington University alumni for information about various careers, and assist you in developing a job search strategy. By registering with the Career Center’s online database, Career Options, you will have access to their full-time job listings.
Economics majors (and minors) planning to seek employment following graduation should plan on completing the Senior Prep Series (SPS) as soon as possible upon returning to campus at the start of the Fall Semester of the senior year. Students must complete the SPS in order to participate in on-campus interviews and referrals. Students can register for early sessions of the SPS via the Career Center website beginning in late July. Students who’re on campus in May of the junior year can attend Junior Jump Start and accomplish most of the following at that time (http://careers.wustl.edu/juniorjumpstart/).
The Senior Prep Series consists of two workshops (“Job Search Strategies” and “Advanced Skills”) which can be taken separately or together via the Senior Prep Blitz, which combines the 2 workshops into one session.
In addition to the SPS, students should frequently check the Career Center website (http://careers.wustl.edu) for helpful documents and tips on job search and networking skills.
Additional considerations:
- Referral to the Olin School of Business’ Weston Career Center is an option for students who are pursuing a second major or a minor in business, while majoring or minoring in economics in Arts & Sciences. You must complete the Senior Prep Series to be eligible for referral. Many business-related positions are cross-listed on Career Options and the Weston Career Center eRecruiting site.
- Recruiters to the Weston Career Center come to campus in early September. Economics majors (and minors) who will seek a referral to Weston should plan on completing the Senior Prep Series in August, or even at the end of their junior year via Junior Jump Start (http://careers.wustl.edu/juniorjumpstart/).
- The Academic Coordinator occasionally receives requests by employers to meet with Economics majors. This information is passed along to majors via email. Check your Washington University email several times each week, at least during the period of your job search.
B. Professional Degree Programs Linked to Economics
Economics provides an excellent foundation for students who want a Masters in Business Administration degree or who want to go to law school. What follows is a brief description of coursework in Economics that might be most appropriate for these career paths.
1) Pre-Business:
The standard pre-business economics concentrations are Industrial Organization and Finance. Courses in other areas (e.g. Labor, International) may also be relevant, depending on your interests. In addition, you should take Econ 413 (Introduction to Econometrics).
You should take Accounting 2610, and we encourage you to take other courses from the business school. Note that many business courses have prerequisites, so you need to plan your program carefully.
Business school admissions committees look for evidence of analytical ability and writing ability. Merely being an economics major helps demonstrate analytical ability. To develop your writing ability, we recommend taking a writing intensive economics course (these are indicated by a W in the course number;
e.g. Econ 371W or Econ 448W) as well as composition courses from the English department.
Finally, note that most M.B.A. programs require that students work for several years prior to applying for business school admission.
2) Pre-Law:
A basic pre-law recommendation, for all undergraduates, is to take microeconomics, Econ 103B at a minimum. But, of course, all economics majors take these courses automatically. Some economics courses, notably Econ 452 (Industrial Organization) and Econ 458 (Theory of Property Rights), complement parts of the law school curriculum.
As with business school admissions, Law school admissions committees also look for evidence of analytical ability and writing ability. As stated above, the Economics Department recommends taking a writing intensive economics course (these are indicated by a W in the course number; e.g. Econ 371W or Econ 448W) as well as composition courses from the English department.
C. Economics and Economics-related Ph.D. programs (e.g. Finance)
The major at Washington University provides a solid foundation for graduate work toward the Ph.D. in economics and economics-related fields (e.g. finance).
Graduate admissions is highly competitive and depends heavily on grades in economics and economics-related (e.g., math) courses. The general advice is: take as many courses in economics and mathematics as you can and do well in them.
If you aspire to a top program, then you should double major in mathematics and economics. You should, in particular, take Math 310, Math 4111 and Math 4121. These courses are demanding, which is one of the reasons admissions committees are interested in your performance in them. Note that, if you take these courses and the advanced probability and statistics sequence (Math 493 and 494), which the economics department also recommends, then you will be very close to having already fulfilled the requirements for Tracks A, B, or E of the mathematics major. For more specific guidelines, you should consult with the Mathematics Department and the Economics Department’s Director of Undergraduate Studies or Academic Coordinator.
Graduate admissions committees look closely at advanced economics courses (generally speaking, 400-level and above). You should take more of these than the major requires. You should, in particular, take econometrics (Econ 413). For guidance on other courses, use the list of Economics Concentrations (in the next section) and talk to your advisor.
Graduate admissions committees in top programs are particularly interested in seeing grades in first-year graduate courses. This is particularly true of microeconomics (WU’s Econ 503) because it is standardized across departments and is, therefore, easy to evaluate. To prepare for such courses, whether here or in graduate school, students should take Econ 4111. We recommend that students take Econ 4111 in the spring semester of their junior year and then take one or more first-year graduate courses in the fall semester of their senior year, since fall semester grades will be available to admissions committees that year. Note that Econ 4111 has both Math 233 and Math 309 as prerequisites, so you should take these in the fall semester of your junior year or earlier.
On mathematics courses, a minimum (typically not adequate to gain admission to a top department) is a third semester of calculus (Math 233) and a course in matrix algebra (Math 309). You will be much better prepared for your first year graduate classes if you take Math 318, which is a more advanced version of Math 233. Mathematics allows strong students to take Math 318 in place of Math 233 provided the student has already taken Math 309; students should consult with their Economics advisor and with the Mathematics department. Some admissions committees also want to see differential equations (Math 209).
All students should take Math 493 (Probability) and Math 494 (Mathematical Statistics). An option for students with adequate preparation is Math 5060-5061. Students should consult with the Math department and their advisors for additional guidance. Students interested in empirical research should also consider Math 475 (Statistical Computation).
All students interested in economic or econometric theory should take Math 310, Math 4111 and 4121, preferably prior to their senior year. As already noted, all students aspiring to top Ph.D. programs should take these courses as well.
Students planning to apply to a Ph.D. program in finance should take Math 493, 494, and 495. Students planning to go to a top finance program should consider ESE 520, 521 and 522 (which have Math 4111 and 4121 as a prerequisite) in place of Math 493, 494, and 495.
NOTE TO MATH MAJORS: The math major is divided into five “tracks.” Of these, the three that are relevant for economics are A (Traditional); B (Probability and Statistics); and E (Mathematics: Economics Emphasis). Refer to the Math department’s web site: http://www.artsci.wustl.edu/~freiwald/major.html
XII. THE ECONOMICS CURRICULUM: CONCENTRATIONS & COURSE DESCRIPTIONS
In addition to the descriptions, below, students should also pay careful attention to each semester’s Course Listings to be aware of special opportunities that may be available.
A. Economics Concentrations
This sub-section presents a categorization of courses into their respective economic “fields.” The listings here are suggestions, meant to help organize your course selection. For instance, a student particularly interested in macroeconomics might wish to select many of the electives described in that category (Econ 335, 435, 448W, 4861, 413). Students are not required to declare a concentration for their economics major (or minor).
For a list of coursework that is most appropriate for post-graduate education (i.e., M.B.A., J.D., Ph.D.), please refer to the discussion in Sections XI.B. and XI.C.
Remark: Although Econ 413 (Introduction to Econometrics) is not required for the major, it is recommended for most concentrations. It is also looked on favorably both by employers and by graduate school admissions committees. Moreover, it is a required course for students participating in the Senior Honors Program. Therefore, the Economics department strongly encourages all majors to take it.
Econometrics
Econ 413 (Introduction to Econometrics), Econ 4155 (Applied Econometrics), Econ 428 (Capital Market Imperfections and Entrepreneurial Finance), and Econ 487 (Applied Financial Modeling).
We also recommend Math 309 (Matrix Algebra), Math 475 (Statistical Computation), Math 493 (Probability), and Math 494 (Mathematical Statistics), and ASTAT 450 (Panel Data). Ambitious students with the necessary background should consider Math 5061 and 5062 (mathematical statistics).
Finance
Econ 335 (Money and Banking), Econ 408W (Household Finance, Bankruptcy and Credit), Econ 428 (Capital
Market Imperfections and Entrepreneurial Finance), Econ 487 (Applied Financial Modeling), and Econ 413 (Introduction to Econometrics).
We also encourage you to take classes in the finance sequence at the business school, in particular Fin 340 (Capital Markets and Financial Management) and Fin 442 (Options Pricing). NOTE: Many finance courses in the business school have multiple prerequisites – you need to plan your program carefully.
History
Econ 326 (American Economic History, Econ 350 (Politics, Economics, and Welfare), Econ 423 (Western Economic History), and Econ 458 (Theory of Property Rights), Econ 471 (Development Economics)
Industrial Organization
Econ 428 (Capital Market Imperfections and Entrepreneurial Finance), Econ 444 (Innovation and Intellectual Property: Theory & Practice), Econ 452 (Industrial Organization), Econ 467 (Game Theory), and Econ 413 (Introduction to Econometrics).
International
Econ 376 (International Economics), Econ 435 (Open Economy Macroeconomics), Econ 471 (Development Economics), Econ 475 (International Trade), and Econ 413 (Introduction to Econometrics).
We also encourage you to take classes from Political Science. Some suggestions are Pol Sci 103 (International Politics), Pol Sci 372 (Topics in International Politics), Pol Sci 4731 (Global Political Economy), Pol Sci 4761 (Politics of International Finance), Pol Sci 4792 (Globalization and National Politics), and Pol Sci 480 (Growth and Development).
Labor
Econ 380 (Labor and the Economy), Econ 480 (Labor Economics), Econ 485 (Labor-Management Relations in Modern Economics), Econ 413 (Introduction to Econometrics), and Econ 4155 (Applied Econometrics)
Another potentially useful course is ASTAT 450 (Panel Data).
Macroeconomics
Econ 335 (Money and Banking), Econ 435 (Open Economy Macroeconomics), Econ 448W (Current Macroeconomic Issues), Econ 471 (Development Economics), Econ 4861 (Seminar in Macro and Monetary Economics), and Econ 413 (Introduction to Econometrics).
Political Economy
Econ 350 (Politics, Economics, and Welfare), Econ 3501 (Political Economy), Econ 3531 (Law and Economics), Econ 371W (Hierarchy and Organization in Economic Life), Econ 377 (International Political Economy), Econ 426 (Economic Systems in Theory and Practice), Econ 4541 (Institutions of Production and Exchange), Econ 458 (Theory of Property Rights), Econ 488 (Seminar in Political Economy), and Econ 413 (Introduction to Econometrics).
Public Policy
Econ 350 (Politics, Economics, and Welfare), Econ 352 (Health Economics), Econ 371W (Hierarchy and Organization in Economic Life), Econ 440 (Economics of Social Policy), Econ 445 (Public Finance), Econ 451 (Environmental Policy), Econ 456 (Business, Government, and the Public), Econ 460 (Urban Economics), and Econ 413 (Introduction to Econometrics).
Theory
Econ 4111 (Optimization and Economic Theory), Econ 435 (Open Economy Macroeconomics), Econ 445 (Public Finance), Econ 460 (Urban Economics), Econ 467 (Game Theory), and Econ 475 (International Trade).
We also encourage you to take theory courses from Political Science: Pol Sci 4621 (Politics and the Theory of Games), Pol Sci 505 (Theories of Individual and Collective Choice), and Pol Sci 5701 (Experimental Design and Analysis). Note that Pol Sci 505 and Pol Sci 5701 are graduate classes; they are open, on a case by case basis, to undergraduates with strong backgrounds.
If you are interested in decision theory and learning, we encourage you to take Psych 100B (Introduction to Psychology) and Psych 361 (Psychology of Learning).
B. Undergraduate Course Descriptions
Notes to what follows:
1.
This list includes courses that are not offered every year.
2.
Courses whose course numbers carry "*" have 401 and/or 402 prerequisites.
3.
Where no course description is given, the course originates in and is staffed by the department with which it is cross-listed.
4.
200-level classes do not count toward the Economics major or minor degree requirements.
103B Introduction to Political Economy: Microeconomics. Determination of prices; distribution of national income; theory of production. For a thorough introduction to economics, Econ 104B should also be taken. Credit 3 units.
104B Introduction to Political Economy: Macroeconomics. Business fluctuations, inflation, recession; monetary and fiscal policy; long-term economic growth; international trade and exchange rates. For a thorough introduction to economics, Econ 103B should also be taken. Credit 3 units.
110 Introduction to Computing. Introduction to the fundamental tools for network computing including telnet, ftp, e-mail, news, and WWW (including the construction of web pages), and collaborative tools. Brief coverage of text editors, word processors, spreadsheets, databases, etc. Introduction is tailored to the needs of A&S students. Prerequisite: None. Credit 3 units.
123 Introductory Research Seminar in Microeconomics. Exploration of principles of microeconomics in a seminar setting. Reading from primary sources by authors including Adam Smith, Thomas Schelling, and Kenneth Arrow. Internet exchanges of critiques and questions will take place prior to each class. Class will follow a question and answer format based on internet exchanges. Each student will produce and present a short research paper using economic concepts (including substitution, opportunity cost, market equilibrium). Paper topics address specific current economic questions such as: Are costs higher in poorer areas? Do injuries go up or down for university students with more restrictive alcohol policies? This course substitutes for Econ 103 for all major and minor requirements. Enrollment limited to 20 students. 3 units.
124 Principles of Macroeconomics Seminar with Computing Applications Introduction to macroeconomic principles including business fluctuations, monetary and fiscal policy, inflation, and international exchange rates. Students will use modern computing resources to complete various assignments such as retrieving price indicies and constructing a web page. This course substitutes for Econ 104 for all major and minor requirements. Enrollment limited to 25 students. 3 units.
205 Napster, AIDs and Intellectual Property
Controversy surrounds the downloading of music over the internet, and the aggressive response of the RIAA to protect their copyrights. Included in this is the lawsuit against Grokster, and the bringing of lawsuits against individual music lovers. Also controversial is the patent protection afforded AIDs drugs, resulting in such high prices that they are unavailable in Africa, the area most devastated by AIDs. Copyrights and patents are justified in the U.S.Constitution by Article I Section 8: "The Congress shall have Power To... to promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." The goal of this seminar is to examine from an economic perspective to what extent modern intellectual property law does in fact "promote the Progress of Science and useful Arts." Credit variable.
2610 Principles of Accounting I. (Staffed by the Business School.)
2620 Principles of Accounting II. (Staffed by the Business School.)
299 Internship in Economics. Students can receive up to 3 units of credit for an approved and faculty-sponsored internship. The internship must be approved by the Career Center and be supervised by a faculty member. Prerequisites: Econ 103B and 104B. Credit 3 units possible.
313 Economies in Transition and Development
Many world economies are in an intensive and perhaps unprecedented period of change. Course themes focus on the dynamic issues of transition and development. Rather than cover any one economy in great depth, we survey a variety of economies throughout the world. The material is divided into four parts: analysis of various theories of economic growth and development; application of the new institutional economics to transition economies; Latin American economic development; and economic growth and recent challenges in Asian economies. Prerequisite: L11 Econ 104B or U07 Econ 104B.
3171 Economics of Sports
The economics of sports focuses on the business aspects of professional and intercollegiate sports in the United States. Questions posed and addressed in this course include: do the benefits of publicly subsidized stadiums justify their costs; how do the four major sports differ in terms of the structure of their labor markets; how far away are Division I schools from Title IX compliance; are sports betting markets consistent with the theory of efficient markets; does the success of a school's intercollegiate sports program enhance alumni donations or the number of applications to that school; how can salary models be used to assist the determination of player value; how can attendance models be used to assist the marketing strategies of that team or school. Additionally, the students will be able to meet some key members of the St. Louis sports scene, and will have an opportunity to assist with creating an economic impact analysis on a local sporting event. Prerequisite: Econ 103B.
326 American Economic History. (Identical with History 3261.) This course will apply basic theoretical concepts to analyze the changing structure and performance of the American economy from Colonial times to the present. Prerequisites: Econ 103B and 104B. Credit 3 units.
333 Economics of the European Union.
Introduction to economic integration and policy in the European Union. Overview of the European economy and analysis of monetary union, tax policy, labor markets, and international trade. Consideration of debates about extension of the union to new countries and comparison with the U.S. economy. Prerequisite: Econ 104. Credit: 3 units
335 Money and Banking.
Money and the monetary system; money creation by the banking system; central bank functions; monetary theory and economic policy. Prerequisites: Econ 103B and 104B. Credit 3 units.
337 Financial Intermediaries in the Market Economy. (Identical with U07 Econ 337.) This course analyzes the opportunities and risks presented by financial intermediaries (e.g., commercial banks, savings and loans, mutual funds and pension funds), the larger economic benefits of having both direct and indirect methods of lending, and the need for regulation. We also consider the implications for these institutions of changes in communications technology and the growth and globalization of capital markets. Prerequisite: U07 Econ 104 or L11 Econ 104B. Counts as 300-level credit toward Economics major.
347W Federalism and the Economics of Public Policy.
The economic rationale for multiple tiers of government in the development, implementation and financing of public policies. Begins with an historical overview of the political and legal dimensions of American federalism, then considers federalism and economic efficiency and the principles of fiscal federalism. The second half of the class examines particular policy areas in which there is significant involvement of federal government with state or local government. Possible topics include homeland security, health care, mass transportation, energy policy, education reform, welfare reform, and urban development. Students required to submit several short essays for discussion and revision. Enrollment limited to 15 students. Prerequisite: Econ 103B and Econ 104B.
350 Politics, Economics and Welfare. The course will cover both theoretical and applied aspects of political economy: the justification of the state; problems of cooperation over public goods; intervention by the government in the economy; questions of equality and efficiency; cooperation between states over common resources; trade, economic integration, international monetary stability, and the operation of the global economy. Prerequisite: Econ 103B. Credit 3 units.
3501 Political Economy
Covers both theoretical and applied aspects of political economy: the justification of the state; problems of cooperation over public goods; intervention by government in the economy; questions of equality and efficiency; cooperation between states over common resources; trade, economic integration, international monetary stability and the operation of the global economy. Prerequisite: Econ 103B.
352 Health Economics. Choices made by consumers and providers of medical services and their relation to constraints will be examined. Major emphasis will be on the determination of the quality of outcomes of medical intervention and of the difficulties of attaining accurate information concerning those outcomes. Prerequisite: Econ 103B. Credit 3 units.
353 The Economics of the Law. Course examines the principal findings of the scholarly literature on the application of economics to law, including such topics as public regulation of the market, concepts of property rights in law and economics, the effect of property rights assignment on income distribution, negligence, no-fault insurance, deterrence and the economic theory of remedies, evidence on the deterrent effect of punishment, and the economics of organized crime. Emphasis will be primarily on the application of theory to specific legal issues. Prerequisite: Econ 103B or permission of instructor.
3531 Law and Economics. (Identical with U07 ECON 3531.) This course broadly examines the roles of prices and markets, the causes of market failures and the
criteria for legal and public-policy intervention. Specific topics include (1) the long-run and short-run economic interests of individual, corporate and public sector clients in a variety of legal contexts, (2) the normative judgments that are implicit in many economic policies and the legal structures implementing such policies; and (3) the uses and limits of economic analysis and economic data in solving a variety of social problems. Prerequisite: U07 Econ 103 or L11 Econ 103B. Counts as 300-level credit toward Economics major.
371W Hierarchy and Organization in Economic Life. Introduction to New Institutional perspectives on problems of economic growth and transition. Basic issues in economic development discussed from a microeconomic perspective with attention paid to the role of political economy, credible commitment, institutional constraints, and the problem of high transactions costs. Material from the literature on industrial organization and management also used to show similarities between hierarchical issues both in political economy and within large firms. Discussion of transition economies of Central and Eastern Europe and transformation in the wealthiest economies, like the U.S. and Japan, as well as traditional questions of underdevelopment. Students required to submit several short and one or two longer essays for discussion and revision. Enrollment limited to 15 students. Prerequisite: Econ 103. Credit 3 units.
380 Labor & the Economy
Economic analysis of labor markets. Theory and policy applications of labor supply and labor demand; explanations of wage and income differentials; migration and immigration; discrimination; labor unions; unemployment. Prerequisite: Intermediate Microeconomics. Prerequisite: Econ 103. Credit 3 units.
401 Price Theory. Analytic theory of consumer and producer behavior under perfect competition; determination of prices, wages, and allocation of resources. Extension to imperfect competition: monopoly, oligopoly, public goods. Required course for Economics majors. Thorough training in intermediate theory would require both Econ 401 and
Econ 402. Prerequisite: Econ 103B and Math 131. Credit 3 units.
402 Income and Employment Theory. Analysis of forces that determine the general level of prices, output and employment; relationship between economic growth and business fluctuations; policies for achieving full employment and price stability. Required course for
Economics majors. Thorough training in intermediate theory would require both Econ 401 and Econ 402. Prerequisites: Econ 104B and Math 131. Credit 3 units.
408W* Household Finance, Bankruptcy and Credit
Economic aspects of household financial decisions and survey of data on U.S. consumer financial conditions. Topics include inter-temporal decision making; the mathematics of amortizing debt; bankruptcy decisions and the legal process of bankruptcy; and the effect of asymmetric information on access to consumer credit. This is a writing intensive class, with multiple writing assignments, a term paper developed in three or four steps, with required revisions, and a class presentation based on the final paper. Prerequisite: Economics 401.
4111* Optimization and Economic Theory.
An introduction to mathematical optimization and its applications within economics. The course is designed for, and should be taken by, all undergraduates considering graduate study in economics, but all interested students are welcome. Prerequisites: Econ 401, Math 233, and Math 309 or permission of the instructor. Credit 3 units.
413 Introduction to Econometrics. Course provides a basic working knowledge of econometrics. Topics will include: Translation of economic theory into statistical models, statistical foundations of econometrics, regression analysis, bivariate and multiple regression techniques, hypothesis testing, multicollinearity, specification error, autocorrelation, errors in variables, identification and simultaneous estimation. Prerequisites: Econ 103B, Econ 104B, and Math 2200 or equivalent. Credit 3 units.
4155 Applied Econometrics
New course for Spring 2008 – Course description forthcoming. Prerequisite: Econ 413. Credit 3 units.
418* Mathematical Economics. A study of the principal mathematical formulations used in economic analysis. Designed to acquaint the student with those aspects of economic theory typically formulated in mathematical terms. Prerequisites: Econ 401 and Math 132 or equivalent. Credit 3 units.
423* Western Economic History. (Identical with International Studies 4231 and History 4231.) A detailed discussion of the circumstances surrounding the industrialization of the Western World in the eighteenth and nineteenth century, with special attention given to Britain, France and Germany. Various hypotheses regarding economic growth and development are examined in the light of the latest evidence
and with the use of basic economic reasoning. Prerequisites: Econ 401, or Econ 103B and written permission of the instructor. Credit 3 units.
426* Economic Systems in Theory and Practice. Theory and practice of mercantilism, capitalism, and socialism. Historical and contemporary examples will be considered, with focus on Latin America, Eastern Europe, and Hong Kong. Primary emphasis on choices open to individuals; pecuniary and non-pecuniary prices paid to exercise those choices. Statistical evidence and case studies will be used. Course requirements include weekly written critique. Prerequisite: Econ 401. Credit 3 units.
428* Capital Market Imperfections and Entrepreneurial Finance. Analysis of problems in capital markets for firm financing and institutional structures that address these problems. Investigation of asymmetric information between firms and potential investors and associated moral hazard and adverse selection problems that raise the cost of funds and constrain firm growth. Empirical tests for the presence of financing constraints on firms. A substantial portion of the course explores the role of venture capital, especially in the high-tech sector of the U.S. economy where venture capital is important for commercializing cutting-edge science. Prerequisite: Econ 401. 3 units.
435* Open Economy Macroeconomics. The course will begin with a review of international trade theory, of the balance of payment accounts and their relationship to international borrowing and lending. We will then study the asset approach to exchange rates determination, exchange rate behavior in the short and in the long run, and the relationship of exchange rates with prices and output. The course will also explore monetary and fiscal policy under both fixed and floating exchange rates, macroeconomic policy coordination and optimum currency areas, international debt problems of developing countries and their relation to stabilization programs. Prerequisite: Econ 402. Credit 3 units.
440 Economics of Social Policy. Economic analysis of the employment and income problems of the poor and of public policy responses. Topics selected from among the following: The distribution of income in the U.S., economic and social causes of poverty; education and technical change; fiscal-monetary and labor market policy; income assistance versus government services; the economics of minimum wages; cost-benefit analysis and the poverty program. Prerequisites: Econ 103B and 104B or consent of the instructor. Credit 3 units.
444* Innovation and Intellectual Property: Theory & Practice
Innovation - that is: figuring out better and cheaper ways of satisfying human desires - is the key to improving our well being. It is not patient saving and accumulation that makes us so much better off than we used to be: capital accumulation is only the conduit through which the innovation juices flow. The question is what drives it? How come some societies are apparently much more innovative than others? How come we have the impression that most useful inventions took place in the last three centuries? Are there policies that help fostering innovation and others that hurt? The course tries to address these questions. Economists have many theories of innovation, and some better than others. We will look at the theories, we will examine the facts (past and present), then we will go back to the theories and reconsider their explanatory power. With this background we approach the debate about Intellectual Property, what it is and what it is not good for, whose interests it serves and whose well being it thwarts. Prerequisite: Econ 401. Credit 3 units.
445* Public Finance. The study of fundamental forms of market failure that provide a rationale for government action. The first third of the class analyzes the allocation of resources and the natural and social phenomena that determine the feasibility and efficiency of allocations and whether they occur as equilibria. Topics include the characterization of efficiency when an economy contains externalities and public goods and the efficiency enhancing role of policy. The second third examines whether particular public policies achieve their goals and are cost effective and whether they produce unintended consequences. The final third addresses taxation. Topics include the measurement and evaluation of tax burdens, the structure of the federal personal income tax and corporate profits tax, tax evasion, and proposals for fundamental tax reform. There is significant use of price theory and calculus throughout the course. Prerequisite: Econ 401.
448W* Current Macroeconomic Issues. Review and extension of macroeconomic models from Econ 402 from a comparative perspective and use of these models to analyze current macroeconomic and policy issues. Topics include recession and recovery, long-term growth, saving and Social Security, investment, and monetary policy. Multiple writing assignments that emphasize critical analysis of readings on current macroeconomic topics. Writing will be revised to improve logical structure, clarity, and style. Enrollment limited to 15 students with priority given to senior economics majors. Prerequisite: Econ 402. Credit 3 units.
451 Environmental Policy/Business and the Environment. This course will examine the relationship between environmental economics and environmental policy and raise more general questions about the political economy of regulation. The course will focus on air pollution, water pollution, and hazardous wastes, although some attention will be given to biodiversity and global climate change. The course will examine critically two prescriptions that economists usually endorse: (1) the "balancing" of benefits against costs (e.g., benefit-cost analysis) and the use of risk analysis in evaluating policy alternatives. (2) The use of market incentives (e.g., prices, taxes, or charges) or "property rights" instead of traditional command-and-control regulations to implement environmental policy. Prerequisite: Econ 103B. Credit 3 units.
452* Industrial Organization. Theoretical and empirical analysis of the presence and value of competitive forces in the U.S. economy. Theories of industrial organization and the development of criteria for the performance of noncompetitive industries. Prerequisite: Econ 401. Credit 3 units.
4541* Institutions of Production and Exchange. The characteristics of contracts, firms, and markets examined both theoretically and empirically. Course begins with an examination of the role of explicit and implicit contracts in exchange, to provide a basis for examining the literature on the theory of the firm. Prerequisite: Econ 401. Econometrics recommended. Credit 3 units.
4551 Seminar in Political Economy. (Identical to L32 4551.)
Collective decision-making in organizations, organization design, links between markets and government, collective preferences, institutions, democracy and deliberation, constitution design. 3 units. This course may not be used to satisfy
major or minor requirements.
456 Business, Government, and the Public. This course examines the increasingly complex interrelationships among business, government, and the public. It focuses on a set of major current problems involved in these relationships, such as environmental improvement, the military-industrial complex, and income redistribution. Prerequisites: Econ 103B and 104B and junior or senior standing. Credit 3 units.
458* The Theory of Property Rights. The course develops a theory of property rights and explores the implication of various property rights structures for resource allocation and economic development. The theory developed by Ronald Coase, Harold Demsetz, Armen Alchian, Steven Cheung, and others will be examined and various types of property right discussed such as share-cropping, slavery, serfdom, as well as property rights in modern market and socialist economies. Prerequisite, Econ 401. Credit 3 units.
460* Urban Economics. This course is a survey of modern urban economics. We shall examine the microeconomics of the structure of cities and housing markets, economic theories addressing how, why and where cities form; they history and dynamics of the urban economy; and the role of government policy in correcting for market failures in the urban economy. Prerequisite: Econ 401. Credit 3 units.
467* Game Theory. Introduction to the analytical theory of non-cooperative games, with applications to Economics. Course will cover game theoretic aspects of decision theory, Nash equilibrium and its refinements, and topics in strategic and extensive form games, and in games of incomplete information. Prerequisites: Econ 401, Math 132, and Math 2200. Credit 3 units.
471* Development Economics.
Investigation of issues related to the development of the economies of third-world countries. Topics include economic growth, poverty, and the distribution of income with an emphasis on labor markets and education. Consideration of the effectiveness of various institutional policies designed to encourage development including decentralization and privatization. Empirical examples are drawn from international experience, especially Latin America. Prerequisites: Econ 401 and Econ 413. Credit 3 units.
475* International Trade. (Identical with International Studies 475.) Analysis of international trade from different perspectives: Ricardian, Hecksher-Ohlin, and new trade theories. Topics include patterns of trade, gains from trade, protectionism, international factor movements, political economy of trade policy, balance of payments, exchange-rate determination, and international investment. Rigorous application of price theory to trade issues and in-depth discussion of current international policy questions. Prerequisite: Econ 401. Credit 3 units.
480* Labor Economics. Economic analysis of labor markets. Theory of and evidence on supply of and demand for labor; explanation of wage differentials; factors affecting the development and application of human capital; effects of alternative compensation and incentive schemes on firm performance and productivity; relationship between wages, inflation, and unemployment; examination of relevant public policy. Prerequisite: Econ 401. Credit 3 units.
485* Labor-Management Relations in Modern Economies. (Identical with Legal Studies 485.) Analysis of some major and puzzling problems of modern industrial economies, in particular the U.S. economy, such as the growing earnings inequality, increased use of contingent workers and outsourcing, and the altered role of training. Further, presentation and critique of an alternative paradigm to conventional theories of firm behavior: the theory of the stakeholder corporation, which purports to explain labor-management relations and provide a normative basis for them; evidence from several countries and labor market structures will be drawn upon. Prerequisites: Econ 104B and 401. Credit 3 units.
4861* Seminar in Macro and Monetary Economics.
Topics chosen by instructor from modern empirical and theoretical research papers in macroeconomics. Student participation in class discussions of research papers is essential. Topics vary, but may include the link between capital
markets, consumption and investment, imperfect competition and macroeconomic fluctuations, real business cycles models, and post-Keynesian macroeconomics. Prerequisites: Econ 401, 402, 413, and permission of instructor.
487* Applied Financial Modeling.
Topics in financial economics, including portfolio theory, the capital asset pricing model, the efficient markets hypothesis, and models of time-varying market volatility, with an emphasis on empirical applications of theoretical concepts using Microsoft Excel. Cultivation of practical programming skills is designed to complement application of economic theory to financial markets. Prerequisites: Econ 401 and Econ 413. Credit 3 units.
488 Seminar in Political Economy. (Identical with Political Economy 498.) Modern democratic theory, applying social choice and game theory to the analysis of democratic political systems. Comparisons between U.S., British, and European policies in terms of responsiveness and efficiency. Discussion of questions of political stability in fragmented politics (Italy, Israel) and newly democratic countries. Approval of instructor required. Credit 3 units. This course may not be used to satisfy major or minor requirements.
490 Independent Work. Prerequisite, senior standing and permission of the Chairman of the Department. Credit variable; maximum 6 units. This course may not be used to satisfy major or minor requirements.
496 Teaching Practicum in Economics. Opportunity for undergraduates to assist in course instruction, tutoring, and preparation of problems,
readings and exam materials under the supervision of faculty. Credit variable; maximum 3 units. This course may not be used to satisfy major or minor requirements.
497 Research in Economics. Opportunity to work on a research project under faculty supervision. Credit variable, maximum 3 units. May be repeated for credit. This course may not be used to satisfy major or minor requirements.
498 Honors Seminar in Economics. Advanced application of economic theory to policy problems. Prerequisites: invitation into departmental Honors Program. Credit 5 units. This course may not be used to satisfy major or minor requirements.
499 Senior Honors Thesis. Independent reading and research under faculty direction leading to a Senior Honors Thesis. Prerequisites: invitation into the departmental Honors Program and permission of the Director of Undergraduate Studies. Credit 5 units. This course may not be used to satisfy major requirements.
XIII. ECONOMICS FACULTY
Research and teaching interests are indicated for each faculty member.Professors:
Gaetano Antinolfi (macroeconomics, monetary and international macroeconomics; 402, 435)
Costas Azariadis (labor contracts, macroeconomic dynamics and economic development; 502)
Lee Benham (industrial organization, medical economics; 103, 352, 426, 4541, 498)
Marcus C. Berliant (public finance, mathematical economics, urban economics; 409, 418, 445, 460, 503, 504)
Michele Boldrin (economic theory, economic growth and macroeconomics)
Sid Chib (Bayesian econometrics)
John Drobak (law and economics, regulatory economics)
Philip Dybvig (economic theory and finance)
Haluk Ergin (microeconomics; 467)
Steven M. Fazzari (macroeconomics, monetary economics, post-Keynesian economics, econometrics; 103, 104, 402, 448W, 486)
Sebastian Galiani (development economics; 471)
Barton Hamilton (entrepreneurship, health economics, labor economics, econometrics)
Sukkoo Kim (economic history, urban & regional economics, international trade; 326, 376, 401, 476)
Stephanie Lau (microeconomic theory, game theory; 401, 467)
David Levine (game theory, general equilibrium theory, macroeconomic theory)
Glen MacDonald (industry evolution, strategy & value appropriation, microeconomics & industrial organization, investor protection, compensation)
James Morley (time series econometrics; 104, 402, 487)
Charles Moul (empirical industrial organization, economics of motion picture distribution; 103, 452)
John H. Nachbar (microeconomics, game theory; 103, 4111, 503)
Douglass C. North (New Institutional Economics, economic history, economic development; 458,General Studies 292)
John V.C. Nye (economic history, New Institutional Economics; 103, 371W, 401, 426, 452)
Robert P. Parks (econometrics, public finance; 104, 413, 445)
Bruce Petersen (microeconomics, industrial organization; environmental economics 103, 452, 428, 453)
Werner Ploberger (statistics, econometric methodology, time series econometrics)
Robert A. Pollak (environmental economics, economics of the family, consumer economics; 451)
Paul Rothstein (public finance, fiscal competition, federalism; 347W, 445)
Norman Schofield (political economy, game theory; 350, 418, 466, PE 498)
Jeroen Swinkels (competitive strategy, game theory, auctions & bidding, design of incentive schemes)
Ping Wang (macroeconomics, growth, urban economics)
Murray L. Weidenbaum (government and business; 456)
Steve Williamson (monetary economics, macroeconomics; 501)
Visiting Faculty:
Tarun Sabarwal (microeconomic theory, financial economics; 103, 408W)
Adjunct Faculty:
James Bullard (learning & expectations formation in macroeconomics, monetary theory, life-cycle economics; 402, 502)
Thomas A. Garrett (public finance, regional, public choice; 104)
Dorothy Petersen (macroeconomics, monetary economics, international; 104, 335, 402)
Patrick Rishe (economics of sports; 3171) Yi Wen (macroeconomics; 402)
Emeritus:
David Felix (development economics, economic history)
Edward Greenberg (theory, statistics and econometrics)
Charles L. Leven (health economics)
Wilhelm Neuefeind (microeconomics, economic theory; 103, 330, 401, 418)
Frederic Q. Raines (statistics, econometrics, labor, macroeconomics)