2002-04 HOME

Section I:
The University

Section II:
Graduation Requirements

Section III:
Majors, Minors, Courses

Economics

2001-2002 Faculty: Burgman, A. Catanese, M. Catanese, English, Field, Goma, Gray, Gropp, Hamilton, Jennings, Lemon, Musser, Pankratz, Pannell, Villinski, Wachter (chair).

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 to 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 adviser and the chair of the economics and management department. Students wishing to count economics courses taken off campus toward the requirements of the Business and Public Service Program or the International Business Program must have prior approval from the relevant program adviser and the chair of the economics and management department. It is not recommended that courses substituting for ECON 100, 150, 280, 294, 295, 350 and 480 be taken elsewhere.

The Management Fellows Program provides selected students with 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.

Students interested in working in international business upon graduation might wish to consider the International Business Program. They should consult with the program coordinator in the economics and management department, the program coordinator of the relevant language department and the director of The McDermond Center for Management and Entrepreneurship.

Students preparing for secondary teaching: review Section V, Teacher Education, and confer with the chair of the education department about requirements for admission and certification.

A major and a minor is offered in Economics.

Requirements for a major in Economics:

Total courses required:

ten courses

Core courses:

ECON 100, ECON 294, ECON 295, ECON 350, ECON 480

Other required courses:

Also required is at least one course from the following: ECON 410, 420, 430, 470.

# 300 and 400 level courses:

three courses

Senior requirement:

The senior requirement consists of the completion of ECON 480 during the senior year, as well as passing a comprehensive examination.

Additional information:

Eight of the 10 required courses must be taken on campus.

Requirements for a minor in Economics:

Total courses required:

five courses

Core courses:

ECON 100, ECON 294, ECON 295

Other courses:

Also required are two additional courses from the following list: ECON 140, 190A, 235, 250, 262, 290A, 310, 315, 342, 350, 360, 375, 390A, 410, 420, 430, 470, 490A.

# 300 and 400 level courses:

one course

Courses in Economics

ECON 100. Introduction to Economics --1 course
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.

ECON 140. Contemporary Economic Problems --1 course
Analysis of selected current economic problems using economic principles. The economic problems covered by this course vary from semester to semester. Prerequisite: ECON 100.

ECON 150. Introduction to Financial Accounting --1 course
Financial accounting principles and procedures involved in the accumulation, evaluation and use of the firm's financial data by managers, investors, economists, the general public and other interested parties. (May be taken before or after ECON 280.) Prerequisite: ECON 100.

ECON 197. First-Year Seminar --1 course
A seminar focused on a theme related to the study of economics. Open only to first-year students.

ECON 235. Modern Economic History --1 course
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.

ECON 250. Economics of Income Differences --1 course
Analysis of economists' explanations of income differences among people in the United States and between developed and less-developed nations. Topics vary but often include income and wealth differences, poverty, employment and unemployment. Prerequisite: ECON 100.

ECON 262. Urban Economics --1 course
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.

ECON 280. Managerial Accounting --1 course
Course deals with product costing and managerial decision making, involving cost-volume-profit analysis, capital budgeting with tax considerations, make or buy decisions, developing criteria for evaluating divisional performance and several other subjects. Prerequisite: ECON 100.

ECON 290. Topics in Economics and Management --1/2-1 course
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.

ECON 294. Intermediate Microeconomic Theory --1 course
Decision-making by firms, households and other economic units about production, consumption, pricing, resource allocation, market structure and externalities. Prerequisite: ECON 100.

ECON 295. Intermediate Macroeconomic Theory --1 course
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.

ECON 310. The History of Economic Thought --1 course
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.

ECON 315. Economics of the Labor Market --1 course
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.

ECON 342. Comparative Economic Systems --1 course
This course analyzes the differences in economics 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.

ECON 350. Quantitative Analysis for Economics and Management --1 course
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 MATH 340 or PSY 210 will receive only one-half credit for ECON 350.

ECON 360. Investment Analysis and Portfolio Management --1 course
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 340 or permission of instructor.

ECON 375. Mathematical Economics --1 course
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 .

ECON 390. Topics in Economics and Management --1/2-1 course
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.

ECON 393. Managerial Finance --1 course
Application of economic analysis to business financial decisions such as: management of current and fixed assets, current and long-term liabilities, capital budgeting with or without capital constraints, mean variance analysis, optimal capital structure, dividend policy and other topics affecting the valuation of a business firm. Prerequisite: ECON 150 and 350.

ECON 398. Business Policy --1 course
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. Management Fellows who will take HONR 400 should see chair or instructor.

ECON 400SS. Teaching of Social Studies --1/2 course
See History 400SS.

ECON 410. Public Finance --1 course
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.

ECON 420. International Economics --1 course
The theory of international trade, the balance of payments, foreign exchange markets, international monetary systems, open economy macroeconomics. Prerequisite: ECON 295 or permission of instructor.

ECON 430. Industrial Structure and Public Policy --1 course
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.

ECON 470. Money, Banking and the Financial System --1 course
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.

ECON 480. Seminar --1 course
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. Required of all senior Economics and Management majors.

ECON 490. Topics in Economics and Management --1/2-1 course
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.

©2001 DePauw University

email: sbates@depauw.edu