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Course Catalog

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

Total courses required Ten
Core courses ECON 100, ECON 294, ECON 295, ECON 350, ECON 480 (or 485)
Other required courses Also required is at least one course from the following: ECON 410, 420, 430, 440, 450, 470, 490.
Number 300 and 400 level courses Three (may include ECON 350, ECON 480 or 485, and the required 400-level elective).
Senior requirement and capstone experience The senior requirement consists of completing ECON 480 or ECON 485 during the senior year, as well as passing a comprehensive examination. The senior requirement usually includes completion of ECON 480: Seminar. In exceptional cases, students may apply to complete an intensive, independent senior thesis which culminates in both a written thesis and a public presentation of the work. ECON 485: Independent Senior Thesis is a one-credit course that may be offered as 1 credit for one semester, or as 1/2 credit in each of two consecutive semesters.
Additional information Eight of the 10 required courses must be taken on campus.
Recent changes in major The option of ECON 485: Independent Senior Thesis for the senior requirement was added effective Fall 2011.
Writing in the Major Writing in the Economics major represents an opportunity for students to effectively articulate economic reasoning. Writing in economics and management generally occurs in a variety of formats, some of these include empirical research papers, analytical papers, and analyses of news article or peer-reviewed journal articles. Writing in economics is technical and the terms used, even if they are familiar words like "demand" and "supply," have very precise and specific meanings in economics. The discipline of economics also heavily uses mathematics to add precision to arguments and hypotheses. Almost all economics papers use theoretical mathematical models or statistical inferences using data as a way to conduct research. The ability to draw inferences from mathematical and statistical methods is essential to learn to think like an economist.

Economics and Management majors are required to write an empirical research in ECON 350, Statistics for Economics and Management, and multiple analytical papers in the capstone course, ECON 480, Senior Seminar. Students will also be evaluated on their ability to apply economic analysis (the logical development of arguments based on economic reasoning) to a variety of topics in micro- and macroeconomics. Students must pass these courses to satisfy this requirement. Additionally, students should expect to encounter many other classes throughout the curriculum that introduce them to these and other forms of writing, for example, 1) research papers in Econometrics, Health Economics, Labor Economics, 2) policy papers or briefs in Environmental Economics, International Economics, Economics of Development, 3) argumentative essays in Introduction to Economics, 4) journal article summaries in Investments and Portfolio Analysis, and 5) case studies in Business Policy and accounting classes.


Requirements for a minor

Economics

Total courses required Five
Core courses ECON 100, ECON 294, ECON 295
Other required courses Also required are two additional courses from the following list: ECON 140, 235, 250, 262, 290A, 310, 315, 320, 342, 350, 360, 375, 390A, 410, 420, 430, 440, 450, 470, 490A.
Number 300 and 400 level courses One

Courses in Economics & Management

ECON 100

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.

Distribution Area Prerequisites Credits
Social Sciences 1 course

ECON 140

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.

Distribution Area Prerequisites Credits
Social Sciences ECON 100 1 course

ECON 184

On-Campus ES Course

On-Campus Extended Studies course in Economics and Management.

Distribution Area Prerequisites Credits
variable

ECON 197

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.

Distribution Area Prerequisites Credits
1 course

ECON 220

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.

Distribution Area Prerequisites Credits
ECON 100 1 course

ECON 235

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.

Distribution Area Prerequisites Credits
ECON 100 1 course

ECON 245

Environmental and Natural Resource Economics

This course uses economic theories and concepts to explore environmental and natural resource problems and evaluate policies for addressing them. Topics vary and may include energy, water, agriculture, sustainable development, environmental justice, and other timely issues. Prerequisite: ECON 100. Not open to students with credit in ECON 335

Distribution Area Prerequisites Credits
Social Sciences ECON 100 1 course

ECON 262

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.

Distribution Area Prerequisites Credits
ECON 100 1 course

ECON 280

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).

Distribution Area Prerequisites Credits
ECON 220 (or ECON 150) 1 course

ECON 290

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.

Distribution Area Prerequisites Credits
Varies according to the topic offered. Variable

ECON 294

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; MATH 151 or MATH 136.

Distribution Area Prerequisites Credits
Social Sciences ECON 100; MATH 151 or MATH 136. Note: Calculus prerequisite goes into effect Fall 2015. 1 course

ECON 295

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.

Distribution Area Prerequisites Credits
Social Sciences ECON 100 1 course

ECON 310

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.

Distribution Area Prerequisites Credits
ECON 100 or permission of instructor 1 course

ECON 315

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.

Distribution Area Prerequisites Credits
ECON 100 1 course

ECON 320

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.

Distribution Area Prerequisites Credits
ECON 100 1 course

ECON 342

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.

Distribution Area Prerequisites Credits
ECON 100 1 course

ECON 350

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.

Distribution Area Prerequisites Credits
ECON 100. Students who have completed BIO 275, MATH 141, MATH 240 or PSY 214 will receive only one-half credit for ECON 350. 1 course

ECON 360

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.

Distribution Area Prerequisites Credits
ECON 350, MATH 240 (formerly MATH 340) or permission of instructor 1 course

ECON 375

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 .

Distribution Area Prerequisites Credits
ECON 294 and MATH 151 1 course

ECON 385

Regression and Simulation for Economics and Management

Regression analysis is applied to a variety of economics and management examples and data. Extensive use of Monte Carlo simulation enables deep understanding of chance processes and sampling variability. Advanced Excel applications (such as add-ins and user-defined functions) develop skills useful in other courses and the workplace. Prerequisite: Elementary statistics (such as ECON 350, BIO 275, MATH 141, MATH 247 or PSY 214) or consent of the instructor.

Distribution Area Prerequisites Credits
Elementary statistics (such as ECON 350, BIO 275, MATH 141, MATH 247 or PSY 214) or consent of the instructor. 1 course

ECON 390

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.

Distribution Area Prerequisites Credits
Varies according to the topic offered. 1/2-1 course

ECON 393

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.

Distribution Area Prerequisites Credits
ECON 220 (or ECON 150) and ECON 350 1 course

ECON 398

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.

Distribution Area Prerequisites Credits
ECON 280 or permission of instructor 1 course

ECON 410

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.

Distribution Area Prerequisites Credits
ECON 294 or permission of instructor 1 course

ECON 415

Labor Economics

This course is concerned with a group of topics on microeconomic aspects of the labor market and a few selected topics on the macroeconomic issues of labor. Building on the models developed in Intermediate Microeconomics, it develops more sophisticated models by incorporating more realistic assumptions in models. It covers topics such as the supply of labor, labor force participation, the demand for labor, reasons for disparity in wages, non-traditional labor models, labor unions and collective bargaining, government regulation of labor markets and labor unions, and macroeconomic causes of cyclical unemployment. Economic aspects of labor unions, bargaining theories of wages, minimum wage legislation, labor supply incentives of various welfare programs, occupational licensure, labor mobility, migration, and discrimination theories are discussed and examined. Students also get an experience in conducting empirical research on a topic of their choice. Prerequisites: ECON 294, ECON 350.

Distribution Area Prerequisites Credits
Social Sciences ECON 294 and ECON 350 1 course

ECON 420

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.

Distribution Area Prerequisites Credits
ECON 294 and ECON 295 or permission of instructor 1 course

ECON 430

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.

Distribution Area Prerequisites Credits
ECON 294 1 course

ECON 440

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.

Distribution Area Prerequisites Credits
ECON 294, MATH 151 or permission of instructor 1 course

ECON 450

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.

Distribution Area Prerequisites Credits
ECON 350, MATH 141, MATH 240, MATH 247 or permission of instructor. MATH 151 or the equivalent. 1 course

ECON 465

Health Economics

The purpose of this course is to introduce economic analysis of health and health care within the context of the United States. The course provides an overview of the existing institutions and policies in the United States health care system and examines both the supply-side and the demand-side of health care. Standard microeconomic tools, such as models of imperfect competition, are used to analyze how the current structure influences the allocation and distribution of health services. The course also examines topics such as medical malpractice, Medicare, Medicaid, the cost of prescription drugs, and markets for human organs. The course evaluates the impact of existing policies and proposed reforms on the economically disadvantaged; it considers the appropriate role of government in health care after taking into account the potential of both the market failure and the government failure. The course looks at the latest health care reforms and the advantages and disadvantages of having universal health care of some type in the U.S. This course also compares the current American health care system with those of other countries such as Canada, the U.K., Germany and France. Students also write a semester-long empirical paper on a health economics topic of their choice. Prerequisites: Econ 294, Econ 350.

Distribution Area Prerequisites Credits
Social Sciences ECON 294 and ECON 350 1 course

ECON 470

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.

Distribution Area Prerequisites Credits
ECON 295 1 course

ECON 480

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.

Distribution Area Prerequisites Credits
A major in economics and management or permission of instructor. ECON 480 or ECON 485 is required of all senior Economics and Management majors. 1 course

ECON 485

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.

Distribution Area Prerequisites Credits
Permission of department 1/2-1 course

ECON 490

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.

Distribution Area Prerequisites Credits
Varies according to the topic offered. 1/2-1 course