Economics
Office: 129 Blodgett Hall, Website:
irving.vassar.edu,
Phone: (845) 437-7395, e-mail: economics@vassar.edu
Professors: Geoffrey A. Jehleb, David
A. Kennett, Alexander M. Thompson III (Dean of Studies);
Associate Professors: Lawrence A.
Herbstab, Shirley B. Johnson-Lansa,
Paul A. Johnson (Chair), William E. Luntb;
Assistant Professors: Christopher P. Kilby, Patricia
A. Jones, John Z. Smith; Visiting Assistant Professor:
Robert E. Prasch III; Visiting Instructor: Gerald
McIntyre; Adjunct Lecturer: Frederick Van Tassell
III.
Requirements for Concentration: at least 11 units
of graded economics credit normally composed of 100, 101,
200, 201, 209, and 6 other graded units (excluding Economics
120) at least three of which must be at the 300 level and
must include either 301 or 305a-306b. Credit for 305 cannot
be used to satisfy the requirements for the concentration
unless 306 is also taken. At least 6 units must be taken at
Vassar including 2 at the 300 level. Students must also
complete at least 1 unit of college level calculus such as
Mathematics 101, 121, or equivalent. Students are strongly
encouraged to complete this requirement early in their
college careers. All exceptions to the normal program
require special permission from the department chair.
Requirements for Departmental Honors: To be
eligible for departmental honors, students must take the
Senior Seminar in Economics 305a-306b, and must perform work
of a high standard in the seminar and in their other
courses.
It is strongly recommended that all students intending to
spend junior year abroad take Economics 200, 201, and 209 by
the end of their sophomore year.
Economics and Your Career–A Guide to Designing
Programs of Study in
Economics at Vassar recommends sequences of study for
students planning to work right after graduation, and for
those planning to attend graduate or professional schools.
It is available in the department office.
Senior-Year Requirement: Economics 301 or
Economics 305a-306b.
Advisers: The department.
Correlate Sequence: The economics department
offers a correlate sequence which designates coherent groups
of courses intended to complement the curricula of students
majoring in other departmental, interdepartmental, and
multidisciplinary programs. Four options are currently
available within the correlate sequence in economics:
International Economics, coordinated by Mr.
Kennett.
Political Economy, coordinated by Mr. Prasch.
Public Policy, coordinated by Mr. Smith(a), Ms.
Johnson-Lans(b)
Quantitative Economics, coordinated by Mr.
Lunt.
Courses within each option should be chosen in
consultation with the coordinator of that sequence. Students
pursuing the correlate sequence in economics are required to
complete a minimum of six courses in the department,
including at least one at the 300 level and at least two
from the following three courses: Economics 100, Economics
101, Economics 102. Additional requirements for each of the
options are detailed in Correlate Sequences in
Economics, available in the department office.
I. Introductory
100a or b. Introduction to Macroeconomics (1)
An introduction to economic concepts, emphasizing the
broad outlines of national and international economic
problems. Students learn the causes and consequences of
variations in gross national product, unemployment, interest
rates, inflation, the budget deficit, and the trade deficit.
The course also covers key government policy-making
institutions, such as the Federal Reserve and the Congress,
and the controversy surrounding the proper role of
government in stabilizing the economy. The department.
101a or b. Introduction to Microeconomics (1)
An introduction to economic concepts emphasizing the
behavior of firms, households, and the government. Students
learn how to recognize and analyze the different market
structures of pure competition, oligopoly, and monopoly. The
course also covers theories of how wages, interest, and
profits are determined. Additional topics include the role
of government in regulating markets, determinants of income
distribution, and the environment. The department.
102b. Introduction to Marxian Economics (1)
The course is an analytical and critical introduction to
Marx's analysis of capitalism. Readings include selections
from the works of Marx and Engels and from the works of
contemporary Marxian writers and critics of Marx. There is a
special emphasis on Volume I of Capital. Topics
include: the labor theory of value; commodity fetishism;
alienation; the production of surplus value; Marx's theory
of money; Marx's theory of capital accumulation. The
relevance of Marx's analysis to contemporary capitalism is
explored. Mr. Thompson.
Open to all classes.
[103a. Markets and Politics] (1)
What role should the state play in today's market
economy? Serious efforts to answer this important and
timeless question immediately encounter some of the most
fiercely debated controversies in economics: is a market
system "progressive"? Can it be self-coordinating? Does a
market system generate internal forces which lead to its
inevitable demise? Can the state correct problems markets
create, or is the state, itself, the problem? To explore
these issues we examine original texts by some of the most
important thinkers ever to have addressed them. Readings
include works by Adam Smith, Karl Marx, John Commons, Joseph
Schumpeter, John Maynard Keynes, and Friedrich von Hayek.
Mr. Prasch.
Open to freshmen only.
120b. Principles of Accounting (1)
Accounting theory and practice, including preparation and
interpretation of financial statements. Mr. Van Tassell.
Open to all classes.
185a.Markets, Institutions, and the State (1)
What role should the state play in the market-coordinated
economy? Are formal and informal institutions crucial to the
functioning of markets? Is the state simply a policeman or
is it necessarily the "grand entrepreneur"? To answer these
questions, we need to identify different issues: Does the
market promote efficiency? Does it generate a fair
distribution of income? Is it crisis-prone? Does it
necessarily enhance economic growth and prosperity? If not,
can the state correct the problems; or would the
intervention of the state create even bigger problems? What
light do the current experiences of economic restructuring
in the Soviet block countries shed on the these questions?
To explore these fundamental issues we examine the original
texts by Adam Smith, Karl Marx, John Commons, Joseph
Schumpeter, John Maynard Keynes, John Kenneth Galbraith,
Milton Friedman, Friedrich von Hayek, and James Buchanan.
Mr. Khalil. Open to freshman only.
II. Intermediate
200a or b. Macroeconomic Theory (1)
A structured analysis of the behavior of the national and
international economies. Alternative theories explaining the
determination of the levels of GNP, unemployment, the
interest rate, the rate of inflation, exchange rates, and
trade and budget deficits are considered. These theories
provide the basis for discussion of current economic policy
controversies. The department.
Prerequisites: Economics 100 and 101.
201a or b. Microeconomic Theory (1)
Economics is about choice, and microeconomic theory
begins with how consumers and producers make choices.
Economic agents interact in markets, so we carefully examine
the role markets play in allocating resources. Theories of
perfect and imperfect competition are studied, emphasizing
the relationship between market structure and market
performance. General equilibrium analysis is introduced, and
efficiency and optimality of the economic system are
examined. Causes and consequences of market failure are also
considered. The department.
Prerequisites: Economics100, 101 or permission of
instructor.
202b. Topics in Political Economy (1)
In this course economics is presented in its full context
as competing visions of the "Good Society" including
classical liberalism, modern liberalism, market socialism,
and communism. Lectures and readings are based on a close
examination of classic arguments and texts. Mr. Prasch.
Prerequisite: One economics course.
[204a. The Economics of Gender] (1)
An analysis of gender differences in income, earnings,
and employment and of gender as a determinant of the
division of labor in the United States and elsewhere. Topics
include occupational segregation, discrimination, and the
role of "protective legislation"; the economics of marriage,
divorce, and property rights; and controversies over sex and
reproduction as market goods. Ms. Johnson-Lans.
Prerequisite: Economics 101.
Not offered in 2000/01.
209a or b. Probability and Statistics (1)
This course is an introduction to statistical analysis
and its application in economics. The objective is to
provide a solid, practical, and intuitive understanding of
statistical analysis with emphasis on estimation, hypothesis
testing, and linear regression. Additional topics include
descriptive statistics, probability theory, random
variables, sampling theory, statistical distributions, and
an introduction to violations of the classical assumptions
underlying the least-squares model. Students are introduced
to the use of computers in statistical analysis. No prior
experience with computers is assumed. The department.
Prerequisites: Economics 100, 101 or permission of
instructor.
210a. Econometrics (1)
This course equips students with the skills required for
empirical economic research in industry, government, and
academia. Topics covered include simple and multiple
regression, maximum likelihood estimation,
multicollinearity, heteroskedasticity, autocorrelation,
distributed lags, simultaneous equations, instrumental
variables, and time series analysis. Extensive use is made
of the computer, although no prior experience with computers
is assumed. Mr. Lunt.
Prerequisites: Economics 209 or an equivalent statistics
course. Recommended: Economics 100, 101.
[212a. Sports Economics] (1)
Professional sports in the United States are multibillion
dollar businesses. This course explores the economic aspects
of professional sports teams and leagues from their
inception to the present. The economic content of legal
issues such as antitrust, free agency, and franchise
mobility are explored. Particular attention is placed on the
development of rival leagues and the dynamics of player
salaries over time. Additional topics include: revenue
sharing and salary caps, public financing of stadia,
collective bargaining and players' unions, and racial
discrimination in professional sports. Mr. Smith.
Prerequisite: Economics 101.
Not offered in 2000/01.
[215b. The Science of Strategy ](1)
Strategic behavior occurs in war, in business, in our
personal lives, and even in nature. Game theory is the study
of strategy, offering rigorous methods to analyze and
predict behavior in strategic situations. This course
introduces students to game theory and its application in a
wide range of situations. Students learn how to model
conflict and cooperation as abstract games, and develop
skills in the fine art of solving games. Applications are
stressed, and these are drawn from many branches of
economics, as well as from a variety of other fields. Mr.
Jehle.
Prerequisites: 100 or 101.
220b. The Political Economy of Health Care (1)
Economic models are applied to the contemporary problems
of financing and providing health care in a climate of
increasing demand and rising costs. Topics include the role
of health care insurance, both public and private; and the
effects of changes in medical technology; the age
distribution of the population; and market structure in the
health care industry. A comparative study of several other
countries' health care systems are included. Ms.
Johnson-Lans.
Prerequisite: Economics 101 or permission of
instructor.
225b. Financial Markets and Investments (1)
This course provides an overview of the structure and
operation of financial markets, and the instruments traded
in those markets. Particular emphasis is placed on portfolio
choice, including asset allocation across risky investments
and efficient diversification. Theoretical foundations of
asset-pricing theories are developed, and empirical tests of
these theories are reviewed. The course introduces valuation
models for fixed-income securities, equities, and derivative
instruments such as futures and options. Throughout the
course, students apply investment theories by managing a
simulated asset portfolio. Additional topics include
financial statement analysis and performance evaluation
measures. Mr. Smith.
Prerequisites: Economics 100 and 101. Students with
strong quantitative backgrounds can enroll with instructor
permission.
Recommended: Economics 201 and Economics 209
238b. Law and Economics (1)
Economic analysis of legal rules and institutions. Topics
are selected from among the following: environmental law,
property rights, antitrust policy, mergers and acquisitions,
regulation, administrative law, discrimination, malpractice,
liability, and criminal law. There are references to the
common law of property, torts, and contracts. The
department.
Prerequisite: 101
248a. International Trade and the World Financial
System (1)
A policy-oriented introduction to the theory of
international trade and finance. The course introduces basic
models of trade adjustment, exchange rate determination and
macroeconomics adjustment, assuming a background of
introductory economics. These are applied to the principle
issues and problems of the international economy. Topics
include the changing pattern of trade, fixed and floating
exchange rates, protectionism, foreign investment, the
Euro-dollar market, the role of the GATT, the IMF and World
Bank, the European Community, the debt crisis, the
North-South debate, and foreign aid. Mr. Kennett.
Prerequisites: Economics 100 and 101. Not open to
students who have completed Economics 345 or 346.
260b. The Economics of Imperialism (1)
A study in economic history and economic thought related
to the rise of European imperialism and its aftermath.
Attention is given to the impact on both the colonized
nation and the colonizer, and to the relationship between
economic thought and policy. Topics covered include the
Spanish and Portuguese empires, systematic colonization, the
late Victorian division of Africa, U.S. expansionism, and
Japanese imperialism. Marxian and competing models are
examined in historical context. The course concludes with a
discussion of the postwar decolonization and the changing
nature of twentieth-century dependency. Mr. Kennett.
Prerequisites: Economics 100 and 101 or 102.
[267a. Environmental and Natural Resource
Economics] (1)
(Same as Science, Technology, and Society 267) This
course examines environmental and natural resource issues
from an economic perspective. Environmental problems and
controversies are introduced and detailed, and then various
possible policies and solutions to the problems are
analyzed. Economic analyses will determine the effectiveness
of potential policies and also determine the people and
entities which benefit from (and are hurt by) these
policies. The goal is for students to develop a framework
for understanding environmental problems and then to learn
how to analyze policy actions within that framework. Topics
include water pollution, air pollution, species protection,
externalities, the energy situation, and natural resource
extraction. The department.
Prerequisite: Economics 101 or permission of
instructor.
268a. Economic Development in Less Developed Countries
(1)
Analysis of the central issues in economic development
including growth, structural transformation, inequality, and
the standard of living. The course begins with a survey of
current conditions (per-capita income, productivity,
inequality, poverty, health, and education) in less
developed countries. The history of development theory from
the 1940s to the present and the evolution of development
theory from "big push" to "export-led growth" are reviewed
with examples from the three focus countries. This sets the
stage for exploring current topics including household
decision-making in agriculture, migration, fertility, and
the role of the state, politics, and international aid. Mr.
Kilby.
Prerequisites: Economics 100 and 101.
269b. Political Economy of Development Aid (1)
The course examines political and economic aspects of
international development assistance. From its origins in
the Marshall Plan at the end of World War II, development
aid has undergone a series of transformations in terms of
philosophical orientation, economic justification, and
practical implementation. The course explores this
evolution, presenting a range of topics: the history of aid;
the economic and political impact of aid; multilateral,
bilateral and nongovernmental aid institutions; project aid
and project appraisal; structural adjustment lending and the
debt crisis; political and economic motives of aid donors
and recipients; and technological bias in development
projects. Mr. Kilby.
Prerequisites: Economics 100 or 101.
282a. Urban Economics (1)
The focus is on the city, in determining its costs and
benefits as well as location and land use. We explore policy
issues specific to local governments in urban areas,
including: zoning, housing and segregation, poverty,
homelessness, transportation, education and crime.
Prerequisites: Economics 101
III. Advanced Courses
303a. Advanced Topics in Microeconomics (1)
This course introduces students to modern theoretical
methods in microeconomics and their application to advanced
topics not typically addressed in Economics 201. Topics vary
from year to year at the discretion of the instructor, but
typically include: modern approaches to consumer and
producer theory, economics of uncertainty, general
equilibrium theory, and welfare analysis. Mr. Jehle.
Prerequisites: Economics 201 and one year of calculus, or
permission of instructor.
Not offered in 2000/01.
304b. Advanced Topics in Macroeconomics (1)
This course examines some recent theoretical and applied
work in macroeconomics. Topics vary from year to year but
are likely to include consumption, investment, and
new-Keynesian models of fluctuations. Economic growth is
also studied, with an emphasis on the relationships between
income distribution and growth. The requisite dynamic
optimization methods are developed during the course. Mr
Johnson.
Prerequisites: Economics 200, 201, 209, and Mathematics
121 or equivalent, or permission of instructor. Economics
210 recommended.
[310b. Advanced Topics in Econometrics]
(1)
Analysis of the classical linear regression model and the
consequences of violating its basic assumptions. Topics
include maximum likelihood estimation, asymptotic properties
of estimators, simultaneous equations, instrumental
variables, limited dependent variables and an introduction
to time series models. Applications to economic problems are
emphasized throughout the course. Mr. Lunt.
Prerequisites: Economics 210 and one year of calculus.
Mathematics 221 recommended.
Not offered in 2000/01.
320b. Labor Economics (1)
An examination of the theory and operation of labor
markets. Topics include demand and supply for labor, a
critical analysis of human capital theory and signaling
theory, the determinants of occupational, wage, and
employment level differences both cross-sectionally and over
time, unions, theories of labor market discrimination and
segregation, and public policy issues including welfare
reform and the effects of minimum wages. Ms.
Johnson-Lans.
Prerequisites: Economics 101 and 209. Economics 201
strongly recommended.
342b. Public Economics (1)
This course considers the effects that government
expenditure, taxation, and regulation have on people and the
economy. Attention is given to how government policy can
correct the many failures of the free market system. Topics
include the effect taxes have on consumption and employment
decisions, the U.S. income tax system, income
redistribution, regulation of monopolies, budget deficits,
military spending, environmental policy, health care,
education, voting, housing policy, social security, and the
U.S. "safety net." The department.
Prerequisites: Economics 201.
345a. International Trade Theory and Policy
(1)
The course examines classical, neoclassical, and modern
theories of international trade, as well as related
empirical evidence. Topics included are: the relationship
between economic growth and international trade; the theory
and practice of commercial policy; the theory of customs
unions; international factor movements; trade between
unequal partners; trade under imperfect competition. Mr.
Jehle.
Prerequisite: Economics 201.
346b. International Monetary Theory and Policy
(1)
The course is devoted to the problems of balance of
payments and adjustment mechanisms. Topics include: the
balance of payments and the foreign ex-change market; causes
of disturbances and processes of adjustment in the balance
of payments and the foreign exchange market under fixed and
flexible exchange rate regimes; issues in maintaining
internal and external balance; optimum currency areas; the
history of the international monetary system and recent
attempts at reform; capital movements and the international
capital market, particularly the Eurodollar market. Mr.
McIntyre.
Prerequisite: Economics 200.
355a. Industrial Organization (1)
This course examines the external behavior of firms under
conditions of imperfect competition. Asymmetry and
heterogeneity among firms are explicitly recognized.
Inefficient, strategic, and illegal behavior of firms is
discussed. Game theory is introduced and applied to study
entry, pricing, output, capacity, and quality choices that
firms must make. The role of information in firm and market
performance is also studied, with particular attention to
its implications for advertising and research and
development. Finally, the role of the government in the
supply of information, in regulation, and in antitrust
enforcement is evaluated. Ms. Jones.
Prerequisites: Economics 201.
356b. Topics in Industrial Organization (1)
This course extends the analysis begun in Economics 355
by examining issues in much greater detail. Where the
emphasis of 355 is on surveying the field of Industrial
Organization and learning the basic models of firm behavior,
the emphasis of 356 is on applying the understanding from
those models to real world situations through detailed case
studies. Instructor to be announced.
Prerequisites: Economics 355 or permission of instructor.
Economics 209 and 210 will be useful for some case studies
and are recommended.
367b. Comparative Economics (1)
A study of different economic systems and institutions,
beginning with a comparison of industrialized market
economies in the U.S., Asia, and Europe. Pre-perestroika
USSR is studied as an example of a centrally planned economy
and the transition to a market economy is examined, with
additional focus on the Czech Republic and Poland.
Alternatives to both market and planned systemssuch as
worker self-management, market socialism, and social
democracyare also explored with emphasis on the experience
of Yugoslavia and Sweden. Mr. Kennett.
Prerequisites: at least 2 units of Economics at or above
the 200-level.
[370a. History of Economic Thought]
(1)
A systematic study of the development of economic thought
from early times to the present; emphasis is placed on the
study of European and American economists of the eighteenth,
nineteenth, and twentieth centuries; the political, social,
and cultural context of the development of economic thought
is highlighted. The department.
Prerequisites: Economics 100, 101, and 2 units of
200-level work in Economics.
One 2-hour period.
Not offered in 2000/01.
371a. Alternative Economic Theories and Perspectives
(1)
This course develops the theoretical foundations of
alternative schools of economic thought (e.g. Marxist,
post-Keynesian, Institutionalist, & Austrian) and
applies them to theoretical and policy issues. From these
theoretical perspectives the course then reexamines
"structural adjustment" policies in the Third World, free
trade, consumer theory, the principles of economic growth,
the operation of theory of financial markets, and the
contemporary resurgence of "neoliberal" economic policies
both here and abroad. Mr. Prasch.
Prerequisites: Economics 201 or 200.
385a. Social Problems of the US Economy (1)
This course examines selected social problems in the US
economy and evaluates both actual and potential public
policy responses to these problems. Some of the topics
covered include: social capital, poverty and inequality,
segregation in housing and schooling, racial discrimination,
civil rights and affirmative action, welfare reform, crime,
and homelessness. by the end of the course, students should
have a good understanding of how these social problems have
evolved in the US economy, as well as how economists analyze
such problems.
Prerequisites: Economics 201 and 209.
IV. Senior Courses
301a or b. Senior Exercise in Economics
(1/2)
Students enrolled in this course undertake the structured
analysis of an article-length work from the economics
literature under the supervision of a department member.
This opportunity for substantive culminating work in
economics is intended to deepen the student's understanding
of their discipline and encourages the student to draw
together elements of four years' education in economics. The
department.
Prerequisites: Economics 200, 201, 209.
305a.-306b. Senior Seminar in Economics (1)
Students must write an independent research paper on a
topic to be agreed upon with the seminar instructor. These
topics should be discussed with the instructor prior to
registration. For any credit for the major, students must
complete both 305a and 306b. Mr. Smith.
One 2-hour period.
V. Other
290a or b. Field Work (1/2 or 1)
Individual or group field projects or internships.
One-half unit for 60 hours of work. The department.
May be elected during the college year or during the
summer.
Prerequisite or corequisite: a course in the department.
Permission required.
Unscheduled.
298a or b. Independent Work (1/2
or 1)
399a or b. Senior Independent Work
(1/2 or 1)
*Recommended, not required