Oberlin College Course Catalog

Economics

Economics has been described as the study of the issues arising from the allocation of limited resources to meet society's unlimited human wants. A major in economics provides the first stage for those interested in graduate work in economics or business. It also offers a rounded background for careers in law, journalism, government and international affairs, teaching, industrial relations, business and business economics, and public service. For up-to-date information on department faculty, the major, course offerings, visiting lecturers and special events, point your web browser to www.oberlin.edu/economic.

Advanced Placement. The department does not give advanced placement credit. Students who believe they have covered the material in Economics 101 (Introduction to Political Economy) must meet with the department chair to obtain permission to bypass this course to take more advanced courses.

Entry-Level Course Sequence Suggestions. Economics 101—Introduction to Political Economy is a prerequisite for all further study in the department. Although it is possible to complete the major requirements even if Economics 101 is taken as late as the second semester of the sophomore year, we recommend that potential majors take Economics 101 in their first year, and a second-level applied course (numbered 201-250) and Mathematics 133 (Calculus I) by the end of their sophomore year. Economics 251, 253, and 255 should be completed no later than the end of the junior year. Note: Mathematics 133 and 113, or their equivalents, are prerequisites for Economics 255.

Students planning graduate work in economics, public policy or business are strongly encouraged to take as much work in mathematics as can reasonably fit into their schedules. Mathematics 133, 134, and Economics 255 should be considered minimal preparation for graduate study in business. Students who plan to enter business directly after graduation also will find these courses desirable. Most students admitted to graduate programs in economics have backgrounds that include a calculus sequence and linear algebra (Mathematics 134, 231, 232, and 301). In addition, training in mathematical statistics and probability is quite common (Mathematics 335 and 336). Those students considering graduate study in economics are advised to take at least one of the advanced Economic Theory and Methods courses (351, 353, or 355).

Major. A major in economics is defined as follows:
1. A minimum of 24 hours in economics including Economics 101, 251, 253, one 300-level course, and one 400-level, upper-class seminar;
2. Economics 255 or Mathematics 231; and
3. A minimum of 12 hours in other social sciences and mathematics including statistics (Mathematics 113 or 114) and calculus (Mathematics 133 or equivalent).

At least 15 of the minimum 24 hours in economics required for majors must be taken at Oberlin and must include at least two of the following three courses: Economics 251, 253, and 255.

Minor. The minor in Economics consists of at least 15 hours in economics, including Economics 101; at least two of Economics 251, 253, or 255; and one 300-level applied course.

Honors. The department puts special emphasis on its Honors Program and ordinarily invites up to a quarter of its senior majors to participate. Invitations are extended toward the end of the junior year on the basis of general academic standing and work in the department up to that time. Interested students should consult with a member of the department.

Students wishing to qualify for admission to the Honors Program must take Economics 251 and 253 before the senior year. In addition, candidates for Honors must take Economics 255 by the fall of their senior year and are strongly urged to take it no later than their junior year.

Transfer of Credit. The awarding of transfer credit is at the discretion of the department chair. Two of the following—Economics 251, 253, and 255—must be taken at Oberlin. Students must obtain preliminary approval of transfer credit in economics from the department chair prior to taking economics courses elsewhere.

Winter Term. Members of the Economics Department will be available as sponsors of both on-campus and off campus projects. Internships are available for economics majors at a number of government agencies and private firms.

Research opportunities. Economics majors are eligible to work as research and lab assistants for the Social Science Data Lab (SSDL). The SSDL serves the departments of Anthropology, Economics, History, Politics, and Sociology. SSDL student assistants act as software and data consultants for the Windows NT computer lab located in King 137, obtain, install, and maintain data sets for research use by faculty and students, and serve as research assistants for social science faculty. Interested students should contact the Director of the SSDL. For more information visit the SSDL web page at www.oberlin.edu/ssdl. Economics majors are also eligible to work as Albert Rees research assistants and to apply for the Albert Rees Policy Fellowship. Recent Albert Rees Fellows have worked during Winter Term at the President's Council of Economic Advisors in Washington, DC. Interested students should contact the department chair.

In this Department

Introductory Economics

Introductory Economics
ECON 101 is the general introductory course and serves as a prerequisite for all applied and intermediate courses.

101. Introduction to Political Economy
3 hours 3SS, QPh
First and Second Semester.
This course introduces the student to the economic problems of unemployment, inflation, the distribution of income and wealth, and the allocation of resources. The basic tools of analysis for studying these problems are developed and the role of public policy in securing economic objectives is explored. The course is designed to serve as a foundation for further work in economics and as a desirable complement to study in history, government, and sociology. Enrollment Limit: 50.
Mr. Kasper, Ms. Craig, Mr. Piron, Mr. Zinser, Staff

102. Introduction to Political Economy
3 hours 3SS, QPf
First Semester.
This course is equivalent to ECON 101. It covers the same substantive material but introduces students to the application of Mathematical tools in economics. Prerequisite: MATH 133. Enrollment Limit: 50.
Staff

150. Computer Spreadsheets for Economists
2 hours 2SS
Second Semester.
This is an introduction to the use of spreadsheet software to analyze economic data and calculate economic models. Topics will include: creating, organizing and editing a spreadsheet, finding and importing data off of the Internet, using a spreadsheet to analyze a database, to visually analyze data, to perform financial and other economic analysis, and to create tables and graphs for inclusion into a document. Microsoft Excel XP is the software package used in the course. No previous programming experience is assumed. Familiarity with Microsoft Windows NT/2000/XP operating system will be helpful. Note: P/NP or CR/NE grading. Enrollment Limit: 20.
Mr. Fernandez

In this Department

Applied Economics I

Applied Economics I
Courses with only ECON 101 as a prerequisite.

206. Financial Management
3 hours 3SS, QPf
Second Semester.
This course provides a thorough foundation in financial economics and applications to the financial management of business enterprises. Coverage includes capital budgeting; financial statement analysis; interest and risk calculations; principles of market valuation; financial funding decisions; dividend and cash flow analysis; and taxation. Prerequisite: ECON 101. Enrollment Limit: 40.
Mr. Cleeton

210. Economic Development in Latin America
3 hours 3SS, CD, QPh, WR
Second Semster.
Survey of major factors that have influenced economic development and income distribution in Latin American and Caribbean nations. Topics include population growth, internal and international migration, agrarian reform, education, health care, inflation, foreign aid and international indebtedness, privatization, economic transformation, and trade negotions. Individual countries will be studied in detail with attention to domestic economic policy decisions, the role of international agencies in shaping development choices and patterns. Prerequisite: ECON 101.
Mr. Zinser

211. Money, the Financial System, and the Economy
3 hours 3SS, QPh
Second Semester.
The course deals with the linkages between financial markets, financial institutions, monetary policy and the economy. Topics will include the function of money in the economy, the determination of interest rates and exchange rates, the origin and evolution of financial intermediation, and the role of the financial system in the transmission of monetary policy. Prerequisite: ECON 101. Enrollment Limit: 40.
Mr. Kuttner

217. Antitrust Economics
3 hours 3SS, QPh
Next offered 2005-2006.

219. Labor-Management Relations
3 hours 3SS, QPh, WR
First Semester.
An introduction to the problems of labor economics and industrial relations, primarily in the United States. Emphasis is placed on the growth of the labor force, wages, the increased importance of white-collar employment, the goals of labor and management, collective bargaining, and major issues of public policy. Prerequisite: ECON 101.
Mr. Kasper

223. Education and Welfare
3 hours 3SS, QPh
Next offered 2005-2006.

224. Law and Economics
3 hours 3SS, QPh, WR
First Semester.
This course provides an introduction to the economic analysis of legal issues and explores the relationship of legal institutions and laws to economic efficiency and social goals, such as justice. Topics are chosen from among the following: property rights, externalities and environmental control, administrative processes, crime, contracts and liability (e.g. product liability and medical malpractice), public utility and antitrust regulations, individual rights and discrimination. Criticisms of the economic analysis of the law are also examined. Prerequisite: ECON 101.
Mr. Zinser

227. International Trade and Finance
3 hours 3SS, QPh
Second Semester.
An introduction to international economics with an emphasis on the economic analysis of international transactions, financial interdependence, and current trade conflicts, as well as discussions of the historical development and contemporary role of international institutions. Prerequisite: ECON 101. Enrollment Limit: 40.
Ms. Craig

231. Environmental Economics
3 hours 3SS, QPh
First Semester.
The course is an introduction to the theory and practice of environmental economics. Emphasis is placed on understanding how the basic tools of economic analysis are used to identify sources of environmental problems, value environmental resources, and design environmental policy within the framework of a market based economic system. Prerequisite: ECON 101. Identical to ENVS 231. Enrollment Limit: 40.
Staff

232. Experimental Economics
3 hours 3SS, QPh
Second Semester.
Experimental techniques are now being used in economics in the quest for answers to problems such as: do competitive markets really tend toward equilibria; does raising payments to citizens cause them to vote for or against the siting of disamenities like waste dumps; what is the extent of cheating among college students; who free rides; how extensive is it? Students will design/run an original experiment on topics such as the above. Enrollment Limit: 12. Consent of instructor required.
Mr. Piron

245. Economics of Healthcare
3 hours 3SS, QPh
First Semester.
Health care economics is the study of how resources are allocated to the production of health care and the distribution of that care. The course will look at the conflict between the provision of high-quality, universal health care and health care cost containment; the pros and cons of using markets to distribute health care; and the institutional features of the markets for health insurance, medical education, hospitals, ethical drugs, and medical innovation and technology. Prerequisite: ECON 101. Enrollment Limit: 40.
Mr. Fernandez

In this Department

Intermediate Economic Theory and Methods

Intermediate Economic Theory and Methods
This sequence of courses ECON 251, ECON 253, and ECON 255 is designed to provide students with a solid foundation in economic theory and analysis. ECON 251 and ECON 253 may be taken in either order, but both should be completed prior to taking ECON 255.

251. Intermediate Macroeconomics
3 hours 3SS, QPh
First and Second Semester.
Intermediate macroeconomic theory with special attention to the roles of monetary and fiscal policies in stabilizing the price level, fostering high levels of employment and promoting economic growth. Prerequisites: ECON 101 and sophomore standing or a 200-level course in economics. Enrollment Limit: 30.
Mr. Kuttner

253. Intermediate Microeconomics
3 hours 3SS, QPh (3SS, QPf for second semester)
First and Second Semester.
Intermediate price, distribution, and welfare theory, with special attention to the relation of theory to decision making by households and by business firms in markets characterized by varying degrees of competition and concentration. Prerequisites: ECON 101 and sophomore standing or a 200-level course in economics. (Calculus, MATH 133 or equivalent for second semester.) Enrollment Limit: 40 (first semester); 25 (second semester).
Mr. Piron, Mr. Cleeton

255. Introduction to Econometrics
4 hours 4SS, QPf
First and Second Semester.
This is an introduction to the application of statistical methods to the estimation of economic models and the testing of economic hypotheses using non-experimental data. The central statistical tool is multivariate regression analysis. Topics covered include: the Gauss-Markov theorem, testing hypotheses, and correcting for heteroskedasticity, autocorrelation, and simultaneous equation bias. In the weekly computer lab sessions econometric estimation software (Eviews) is used to analyze real-world data. Prerequisites: MATH 113 or 114, MATH 133, both ECON 251 and ECON 253, or consent of instructor. Enrollment Limit: 20.
Mr. Fernandez, Ms. Craig

In this Department

Applied Economics II

Applied Economics II
Courses requiring intermediate theory as a prerequisite.

313. Games and Strategy in Economics
3 hours 3SS, QPh
Second Semester.
This course is an introduction to the use of non-cooperative game theory in economic analysis. Non-cooperative game theory was invented in 1945 by John von Neumann to study poker, but has since been applied to the study of the military strategy of mutual assured destruction, the mating rituals of penguins, price and output in markets that are neither monopolized nor perfectly competitive, Congressional voting, and the decisions of the Federal Reserve. The course will cover both static and dynamic games with both complete and incomplete information. Applications will be drawn from many fields of economics, including: industrial organization, labor economics, corporate finance, macroeconomics, international trade, and public choice. Prerequisites: ECON 253 and MATH 133, or consent of instructor. Enrollment Limit: 20.
Mr. Fernandez

315. Financial Markets
3 hours 3SS, QPh
First Semester.
A microeconomics approach to the study of the functions of financial markets. Topics include the fundamentals of risk and return, the valuation of equity and fixed income securities, the term structure of interest rates, investment and security analysis, and questions of market efficiency. Prerequisites: ECON 253 and ECON 206 or 211.
Mr. Cleeton

317. Industrial Organization
3 hours 3SS, QPh, WR
Next offered 2005-2006.

320. Labor Economics
3 hours 3SS, QPh, WR
Second Semester.
The labor market and its relation to the economy as a whole. Emphasis on wage theory, the economic impact of trade unionism, unemployment, education, discrimination, and major issues of public policy. Prerequisite: ECON 253 or consent of instructor.
Mr. Kasper

321. Poverty and Affluence
3 hours 3SS, QPh, WR
Next offered 2005-2006.

325. US-EU Relations
3 hours 3SS, CD
First Semester.
An analysis of contemporary economic policy issues between the US and the EU. Coverage includes: development and growth of trade, transatlantic economic and financial integration, and analysis of convergence and disparities in the economic policy positions of the US and the EU with respect to global economic issues. Focus will be on trade and competition theory and analysis of policy making illustrated with detailed studies of national, supranational, and international cooperative efforts. Prerequisites: ECON 253 and either ECON 227 or ECON 224 or consent of instructor.
Mr. Cleeton

326. International Trade
3 hours 3SS, QPh
First Semester.
This course offers the advanced theory of international trade, focusing on the factors which determine trade patterns, the gains from trade, and the domestic and international distribution of the gains from trade. Trade restrictions in the form of tariffs and quotas will be analyzed as well to understand how government policies can alter both trade flows and the distribution of gains from trade. Prerequisites: ECON 253 and MATH 133 or equivalent.
Ms. Craig

327. International Finance
3 hours 3SS, QPh
Next offered 2005-2006.

331. Advanced Topics in Environmental and Resource Economics
3 hours 3SS, QPh
Second Semester.
The course applies microeconomic analysis to the allocation and management of natural resources and the environment. Economic modeling is used to analyze the optimal use of resources such as land, water, and fossil fuels. Issues of land use and urban sprawl, efficient pricing for water and power, species extinction, optimal extraction of a mineral over time, and the reliance on natural resources in the context of growing populations will be explosed. Prerequisites: ECON 253 and MATH 133. ENVS 231 recommended. Identical to ENVS 331. Enrollment Limit: 20.
Staff

342. Monetary Theory and Policy
3 hours 3SS, QPh
First Semester.
Advanced theory of the design and impact of monetary policy and formal theories of the role of money, credit and banking in market economies. Prerequisites: ECON 251, ECON 253, and ECON 255.
Mr. Kuttner

In this Department

Advanced Economic Theory and Methods

Advanced Economic Theory and Methods

351. Macroeconomic Theory
3 hours 3SS, QPf
Next offered 2005-2006.

353. Microeconomic Theory
3 hours 3SS, QPf
Next offered 2005-2006.

Upper-Class Seminars

410. Seminar: Economic Development in Latin America
3 hours 3SS, WR
First Semester.
Critical analysis of contemporary problems that have affected economic development and the distribution of income in Latin America. Analysis of the impact of specific domestic policies, the role of foreign aid, and the prospects for regional cooperation. Prerequisites: ECON 251, ECON 255, and at least one course in economic development or international economics. Enrollment Limit: 15.
Mr. Zinser

411. Seminar: Economic Growth
3 hours 3SS
Next offered 2005-2006.

425. Seminar: The European Economy
3 hours 3SS
Second Semester.
This advanced undergraduate seminar will examine the political economy of the evolution of the Economic and Monetary Union (EMU) within the European Union (EU). The primary focus of the seminar is on understanding the development and application of economic models drawn from international finance and open economy macroeconomics. Prerequisites: ECON 251, ECON 255, and one 300-level ECON course.
Mr. Cleeton

431. Seminar: Topics in Water Resource Economics
3 hours 3SS
Next offered 2005-2006.

441. Seminar: Economics of Labor and Welfare Policy
3 hours 3SS, WR
Next offered 2005-2006.

445. Seminar: The Economics of Health Care and Health Insurance
3 hours 3SS, WR
Next offered 2005-2006.

453. Seminar: Nineteenth Century Economic Thought
3 hours 3SS, WR
Second Semester.
An intellectual tour of classical economics, from its beginning with Adam Smith and including (but not limited to) the works of Ricardo, Malthus, Senior, Say, Mill, Walras, Jevons, Menger, Marshall, and Keynes. As the century's major alternative paradigm, the economics of Marx will also be discussed in detail, with emphasis on both its theoretical precision and policy implications. Prerequisites: ECON 101 and 251 or 253. Enrollment Limit: 10.
Mr. Piron

491. Honors Program
1-7 hours 1-7SS, WR
First and Second Semester.
This program is open by departmental invitation near the end of the junior year to major students whose general and departmental records indicate their ability to carry the program and the likelihood that they will profit from it. The program extends through the year and involves the independent preparation of a thesis, defense of the thesis, active participation with other Honors students and the department staff in a weekly seminar meeting during the second semester, and an oral examination by an outside examiner. Consent of instructor required.
Staff

995. Private Reading
1-3 hours 1-3SS
First and Second Semester.
Projects sponsored by Mr. Cleeton, Ms. Craig, Mr. Fernandez, Mr. Kasper, Mr. Kuttner, Mr. Piron, and Mr. Zinser. Consent of instructor required.

In this Department