Economics & Management

The study of economics broadens our understanding of economic behavior, domestic and international government policies and social institutions. It sharpens our abilities to think clearly and analytically about these and other matters. It may also help students reach a variety of specific career goals. For example, most majors take entry-level positions in business: they are hired by banks and other financial institutions, accounting and management consulting firms, and companies in manufacturing, public utilities and commerce. Some majors go on to earn graduate degrees in economics; they may then work in areas such as business, government service or academia. (Students considering graduate study in economics should consult with a department faculty member about the large number of mathematics courses that are highly recommended.) A background in economics is also excellent preparation for graduate study in law and business. Many of our graduates have gone on to reach exceptional levels of recognition and responsibility in education, government and industry. Students wishing to apply economics courses taken off-campus toward a major in economics must have prior approval from their economics advisor and the chair of the economics and management department. Students wishing to count economics courses taken off-campus toward the requirements of the Business Administration Minor or the International Business Program must have prior approval from the relevant program advisor and the chair of the economics and management department. It is not recommended that courses substituting for ECON 100, 220, 280, 294, 295, 350 and 480 be taken elsewhere. The Management Fellows Program provides selected students the opportunity to combine an economics major with a semester-long internship. For information about this special program, as it applies to economics majors, see the description in Section V at http://www.depauw.edu/catalog/section5.

Requirements for a major

Economics

Requirements for a minor

Economics

Courses in Economics & Management

Introduction to Economics

Survey of basic concepts and processes in microeconomics and macroeconomics: production, income, demand, supply, cost, price, market structures, money, government finance and international trade and finance.

Contemporary Economic Problems

Analysis of selected current economic problems using economic principles. The economic problems covered by this course vary from semester to semester. Prerequisite: ECON 100.

First-Year Seminar

A seminar focused on a theme related to the study of economics. Open only to first-year students. ECON 197 cannot be counted toward an Economics major.

Introduction to Financial Accounting (formerly ECON 150)

The preparation, communication and use of economic information for decision-making, with a focus on external users (e.g., investors, creditors). Topics included are an examination of economic events within a business; terminology, the underlying conceptual framework, and generally accepted accounting principles; and financial statements. Balance sheet coverage includes resources owned, and obligations owed, by a company; the income statement provides insight into the performance of a company; the statement of cash flows identifies sources and uses of a company's cash flows; and financial statement analysis uses this information for a variety of decisions. Both the benefits from using financial accounting information, and its limitations, will be discussed. Prerequisite: ECON 100.

Modern Economic History

Emphasizing the American experience, the historical development of modern economic institutions and the role of economic factors in the emergence of contemporary industrial society. Prerequisite: ECON 100.

Urban Economics

Survey of basic urban economic problems. Topics covered include why cities exist, where they develop, how they grow and how different activities are arranged within cities. Additional topics covered include economics of urban problems, such as poverty, inadequate housing, congestion, pollution and crime. Prerequisite: ECON 100.

Managerial Accounting

The provision and use of accounting information for internal management decision making. Topics covered include terminology and underlying concepts; costing systems; cost behavior and its role in cost-volume-profit analysis; operating and capital budgeting; performance evaluation; responsibility accounting including segmented reporting and transfer pricing; pricing of products and services; and differential analysis in decision making (e.g., outsourcing decisions and whether to add or drop a segment of the business). Prerequisite: ECON 220 (or ECON 150).

Topics in Economics and Management

A. Economics; B. Management. Detailed study of theoretical and policy aspects of such topics as inflation, resource and product pricing, management, market structure, government-business relations, financial markets and international trade. Prerequisite: varies according to the topic offered. May be repeated for credit with different topics.

Intermediate Microeconomic Theory

Decision-making by firms, households and other economic units about production, consumption, pricing, resource allocation, market structure and externalities. Prerequisite: ECON 100.

Intermediate Macroeconomic Theory

Analysis of factors determining levels of national income and employment, including consumption, investment and government fiscal policy, with applications to such problems as economic instability, inflation and growth. Prerequisite: ECON 100.

The History of Economic Thought

A treatment of some of the major figures and trends in the history of economic ideas. Topics may vary but will include an examination of the contribution of the Mercantilists, Physiocrats, Classical and Neoclassical economists to our understanding of the individual, value and the market; transactions and their mediation; economic growth and development; the distribution of output; and the roles of capital and labor. Readings may include, among others, the economic writings of Locke, Quesnay, Smith, Ricardo, Marx, Mill, Menger, Bohm-Bawerk, Marshall and Keynes. Prerequisite: ECON 100 or permission of instructor.

Economics of the Labor Market

Introduction to the method and manner in which the economic analysis of the labor market proceeds. Both traditional and alternative methods of labor market analysis are studied. Topics include demand for and supply of labor, human capital and public policy issues. Prerequisite: ECON 100.

Development Economics

Explores the economic conditions and problems facing developing economies. Examines the main theories and sources of economic growth and development. Topics may include poverty, inequality, education, health care, population growth, urbanization and migration, agrarian reform, trade policy, foreign debt, foreign aid, structural adjustment policies and globalization. Prerequisite: ECON 100.

Environmental and Natural Resource Economics

This course uses economic theories and concepts to explain behavioral causes of environmental and natural resource problems and evaluate policies for addressing them. Topics vary and may include sustainable development, allocation of natural resources, pollution control measures, effects of environmental regulation on U.S. competitiveness and environmental justice. Prerequisite: ECON 294.

Comparative Economic Systems

This course analyzes the differences in economic institutions across countries. By looking at the economic incentives in corporations, financial institutions and governments in several different countries, the course will address the question of how different market systems provide incentives to encourage economic growth. By the end of the course, students will be able to analyze the economic implications of a country's institutional arrangements and evaluate the role of government in the economy. Prerequisite: ECON 100.

Statistics for Economics and Management

(formerly Quantitative Analysis for Economics and Management) Application of elementary principles of traditional and modern statistical analysis to economic and business decision-making. Emphasis is on regression analysis using simple- and multiple-equation models, hypothesis testing, use of the dummy variables, testing for serial correlation and other related problems. Prerequisite: ECON 100. Students who have completed BIO 275, MATH 141, MATH 240 or PSY 214 will receive only one-half credit for ECON 350.

Investment Analysis and Portfolio Management

The theories of the value of investment instruments are examined. Topics covered include the theories of capital markets and portfolio management. Emphasis is placed on modern portfolio theory. Prerequisite: ECON 350, MATH 240 (formerly MATH 340) or permission of instructor.

Mathematical Economics

This course integrates mathematical techniques and economic theory. Mathematical techniques, such as linear algebra and differential calculus, are used to examine the mathematical foundation of the neo-classical paradigm. Economic concepts, such as profit maximization, utility maximization and cost minimization are considered using optimization and comparative static techniques. Prerequisite: ECON 294 and MATH 151 .

Advanced Topics in Economics and Management

A. Economics; B. Management. Detailed study of theoretical and policy aspects of such topics as inflation, resource and product pricing, management, market structure, government-business relations, financial markets and international trade. Prerequisite: varies according to the topic offered. May be repeated for credit with different topics.

Managerial Finance

The determination of what assets a firm should own and how these assets should be financed, with the goal of maximizing the value of the firm. Topics included are the underlying concepts of corporate finance, financial statement analysis, financial planning, working capital management, capital budgeting, valuation of stocks and bonds, a firm's cost of capital and its optimal capital structure, and dividend policy. Prerequisites: ECON 220 (or ECON 150) and 350.

Business Policy

A study of the formulation and implementation of business strategy. Topics include planning, control, economic analysis and organization theory. Extensive use is made of case studies. Prerequisite: ECON 280 or permission of instructor.

Public Finance

The economic principles used to analyze government's role in the economy are developed. Microeconomic theory is used to examine government tax and expenditure policies, especially as they affect resource allocation and income distribution. Both efficiency and equity questions are addressed. Topics include expenditure programs designed to affect the allocation of resources (e.g. national defense outlays, income distribution)(e.g. food stamps), and the major forms of taxation (e.g. income and sales taxes). Prerequisite: ECON 294 or permission of instructor.

International Economics

The theory of international trade, the balance of payments, foreign exchange markets, international monetary systems, open economy macroeconomics. Prerequisite: ECON 294 and ECON 295 or permission of instructor.

Industrial Structure and Public Policy

Analysis of industrial structure, organization and performance with emphasis on public policy implications. Policy topics which may be considered include business concentration, government enterprises, financial market regulation and the newer social-environmental regulation. Prerequisite: ECON 294.

Applied Game Theory

Application of game theory models to strategic problems such as oligopoly, voting mechanisms and bargaining. Includes Nash equilibrium, static and dynamic games and games with uncertain outcomes. Prerequisite: ECON 294, MATH 151 or permission of instructor.

Econometrics

Econometrics is the application of statistical methods for the purpose of testing economic and business theories. This course will introduce students to the skills used in empirical research including, but not limited to, data collection, hypothesis testing, model specification, regression analysis, violations of regression assumptions and corrections, dummy variables, time series analysis, limited dependent variable models, and panel models. Extensive focus will be on the intuition and application of econometric methods, and as a result, statistical software will be used extensively. Students will be required to complete an independent research project involving the application of regression analysis.

Money, Banking and the Financial System

Structure, operations and policies of major monetary and banking institutions, including commercial banks, the treasury, the Federal Reserve System and other agencies involved in money creation, monetary policy and international monetary relations. The course also stresses the theory of monetary policy and the relationship between money and economic activity. Prerequisite: ECON 295.

Seminar

Application of economic analysis in research papers to a variety of micro- and macroeconomic issues. Group discussion and criticism of research methods and conclusions. Prerequisite: a major in economics and management or permission of instructor. ECON 480 or ECON 485 is required of all senior Economics and Management majors.

Independent Senior Thesis

Outstanding students in economics may complete an intensive independent research project in their senior year. The project culminates in a written thesis and a public presentation of their research. The thesis is directed by a faculty member in the Department of Economics and Management. Thesis proposals must be approved by the department before a student can register for ECON 485. Prerequisite: Permission of the department. May be taken for 1 semester (1 credit) or in two consecutive semesters (1/2 credit each). semester). Not open for pass/fail credit.

Advanced Topics in Economics and Management

A. Economics; B. Management. Detailed study of theoretical and policy aspects of such topics as inflation, resource and product pricing, management, market structure, government-business relations, financial markets and international trade. Prerequisite: varies according to the topic offered. May be repeated for credit with different topics.