Christian A. Johnson Distinguished Professor of Economics: David C. Colander (chair); Alan R. Holmes Visiting Professor of Economics: Scott Pardee; Frederick C. Dirks Professor of International Economics, Dean for Faculty Development and Research: Sunder Ramaswamy; James Jermain Professor of Political Economy: Peter Hans Matthews; David K. Smith Professor of Applied Economics: Phanindra V. Wunnava; Professors: Michael P. Claudon; Paul M. Sommers; Associate Professors: Jeffrey Carpenter (on leave academic year), Jonathan T. Isham, Robert Prasch, William Pyle (on leave academic year), Thierry Warin (Director of the International Politics and Economics Program); Assistant Professors: Jessica Holmes, John Maluccio, Nicholas Muller, Caitlin Myers, Casey Rothschild (on leave academic year); Visiting Scholar: Michael Lewin; Visiting Assistant Professors: Carolyn Craven, Aniruddha Mitra, Steven Pecsok; Christian A. Johnson Visiting Fellow: David Horlacher; Department Coordinator: Amy Holbrook; Events Coordinator: Janine Podraza
I. REQUIRED FOR THE MAJOR
The economics major consists of four sequences.
Introductory Sequence: ECON 0150 and ECON 0155. Neither ECON 0150 nor ECON 0155 assumes any prior exposure to economics, but both courses presume a thorough working knowledge of algebra. Note: No student who receives a grade below a C- in either ECON 0150 or ECON 0155 will be admitted into the Intermediate Theory Sequence without a waiver.
Quantitative Sequence: The quantitative sequence in economics consists of two courses. The first course can be either ECON 0210, MATH 0116, or MATH 0310 (and in special situations PSYC 0201). (Credit is not given for ECON 0210 if the student has taken MATH 0116, MATH 0310, or PSYC 0201.) Students planning to do a joint major in math or those wanting to take MATH 0410 (Stochastic Processes) should take MATH 0310 rather than MATH 0116 or ECON 0210, since MATH 0310 is a prerequisite for MATH 0410.) The second course in the sequence is ECON 0211.
Students must pass ECON 0210 with at least a C- to be admitted into ECON 0211 without a waiver. Either MATH 0120 or MATH 0121 (or their AP or IB equivalents) is a prerequisite for ECON 0211 and ECON 0255. (In special circumstances, students who have a strong background in high school calculus, but did not do the AP or IB equivalent, may substitute either MATH 0200 or CSCI 0101 for MATH 0120 or MATH 0121 with approval by the economics chair.)
Intermediate Theory Sequence: ECON 0250 and ECON 0255. MATH 0121 is a prerequisite for ECON 0255. (In special circumstances, students who have a strong background in high school calculus, but did not do the AP or IB equivalent, may substitute either MATH 0200 or CSCI 0101 for MATH 0120 or MATH 0121 with approval by the economics chair.) The department will waive the MATH 0121 requirement in both the quantitative and intermediate theory sequence for students who score a 4 or higher (3 or higher) on the Advanced Placement Calculus AB (BC) exam.
Note: It is important, especially for those planning to study abroad for a full year that the above three sequences be completed preferably by the end of the sophomore year.
Elective Sequence: Majors are required to take at least four electives, two of which must be 0400-level or 0700-level seminar courses. The other two electives may be 0200-, 0300-, or 0400-level courses.
All majors must take at least six economics courses in the major at Middlebury, including one 0400-or 0700-level course. The 0400-level courses are seminars that typically enroll no more than 16 students, have intermediate theory as a prerequisite, and serve as a capstone experience for the major. Emphasis is placed on reading, writing, and discussion of economics at an advanced level. The 0700-level courses are seminars that typically enroll 8 students, have intermediate theory and a field course as a prerequisite, and involve writing an honors thesis. Emphasis is placed on writing a research paper. Because of space constraints, they are reserved for straight economics majors; others, including minors, joint majors, and majors in programs that include economics will be admitted on a space available basis.
Note: ECON 0500 does not count towards the major or minor requirements. Students majoring in economics cannot count both ECON 0230 and ECON 0430, nor can they count both ECON 0425 and ECON 0426 toward the minimum of 10 required courses. Only two of the following four courses: ECON 0316, ECON 0317, ECON 0412, and ECON 0475 will count towards the minimum 10 course major requirement. ECON 0205 (Economics of Investing) will not count towards the major, though ECON 0205 will count towards the minor. Economics electives taken during the winter term will count towards the major or the minor only if so designated in the winter term catalog.
Honors: Students interested in earning departmental honors may do so by taking a Senior Research Workshop (ECON 0700) during their senior year (Four ECON 0700 courses will be offered in 2008-2009: two in the fall; two in the spring.) or in highly special circumstances by arranging with a professor an independent thesis project (ECON 0701) that is approved by the entire department as an alternative.
These senior workshops will be composed of no more than eight students who will work independently on a project in a specific area for a semester and will meet to collectively discuss and present their research. Each of these workshops will have one or more prerequisite courses, and students who have prearranged a research topic with the professor leading the workshop will be given priority in admission to the seminar. To receive departmental honors the student must receive a minimum grade of A- in the Senior Research Workshop project and have a 3.5 or higher GPA in all economics courses (courses with Econ prefix) taken at Middlebury. (ECON courses taken through Middlebury Abroad Programs will be counted in Economics GPA calculations.) High Honors requires an A in the Senior Research Seminar and a 3.75 or higher economics GPA, and Highest Honors an A in the seminar and a 3.9 or higher economics GPA.
Joint Major Requirements: Students can major in economics jointly with another discipline when there is a good rationale for doing so. At a minimum, all joint majors must include senior work that integrates the two majors. Joint majors with interdisciplinary majors are not allowed, since interdisciplinary majors are already joint. Typical joint majors include joint majors with mathematics, philosophy, political science, and psychology. Joint majors with other disciplines are possible, but you should discuss the rationale of combining economics with that other discipline as a joint major with your adviser or department chair, and work out a plan for how that joint major will include senior work that combines the two majors. Unless otherwise stated, the requirements in economics for a joint major will include a minimum of eight courses: ECON 0150, ECON 0155, ECON 0210, ECON 0211, ECON 0250, ECON 0255, and two electives, one of which must be at the 0400 or 0700-level. (Joint majors will be allowed in ECON 0700 courses on a space available basis.)
Joint majors with mathematics are advised to take MATH 0310 rather than ECON 0210 as their beginning statistics course. They are also advised to select MATH 0323 instead of MATH 0302. Suggested electives include MATH 0225, MATH 0311, MATH 0315, MATH 0318, MATH 0410, MATH 0423, CSCI 0302, ECON 0347, ECON 0380, ECON 0390, ECON 0411, and ECON 0462. More specific recommendations for sets of courses meeting the joint major requirements can be found on the web at http://www.middlebury.edu/academics/ump/majors/econ/.
Honors for Joint Majors: Students completing a joint major in economics will be allowed into the ECON 0700 workshops necessary for honors in economics on a space available basis; thus it may not be possible to get honors through the economics department, although it may be possible to get it through the other department, depending on space availability in that department and approval by the economics department chair. Candidates for joint honors approval in economics will need to meet the same grade criteria in economics as do economics majors.
International Politics and Economics Major: Students wishing to major in the international politics and economics program must complete a 12-course curriculum in political science and economics, study a foreign language, and study abroad. For the class of 2011 and after, the six required economics courses are: ECON 0150, ECON 0155, ECON 0250, plus ECON 0340 and two electives with an international orientation, at least one of which should be a 0400 level senior seminar or a 0700 level Workshop, although IPE majors will only be admitted to the 0700 Workshops on a space available basis. At least four economics courses meeting the major requirements must be taken at Middlebury, including the 0400-level or 0700-level course. Please refer to the International Politics and Economics section of the catalog for more details about the major or visit www.middlebury.edu/ipe for the most current information.
International Studies Major: The international studies major allows students to combine the study of a language and focus on an area with another discipline in the humanities or social sciences, linking both with an appropriate experience abroad. International studies majors who choose East Asian studies, European studies, Latin American studies, or Russian and East European studies as their program of emphasis along with economics as their disciplinary specialization are required to take the following courses: ECON 0150, ECON 0155, ECON 0250, ECON 0255, one regional elective, and one 0400-level seminar focusing on the region or one seminar in international/development issues. If a non-regional seminar is taken (e.g., ECON 0425, ECON 0444, or ECON 0445), the final paper should focus on the region of study. Please refer to the International Studies section of the catalog for more details about the major or visit http://www.middlebury.edu/academics/ump/majors/is for the most current information.
AP Credit Policy: Students who score a 5 on the advanced placement exam in microeconomics, macroeconomics, or statistics receive credit for Introductory Microeconomics (ECON 0155), Introductory Macroeconomics (ECON 0150), or Economic Statistics (ECON 0210), respectively, upon submission of their official scores to the Registrar's Office and approval from the department chair. Students who score a 4 on the advanced placement exam in microeconomics, macroeconomics, or statistics must earn a B- or better grade in the corresponding intermediate-level course ECON 0255, ECON 0250, or ECON 0211, respectively, to receive college credit for the lower-level course. (If a B- or better is not earned, then an additional economics elective will need to be taken to replace each of the respective courses to maintain the 10-course economics major requirement.)
International Baccalaureate/A-Levels: Students who have completed an International Baccalaureate or the equivalent of the introductory sequence abroad before coming to Middlebury and have earned a score of 6 or higher on IB economics or a grade of B or better on A-Level economics should begin their studies of macro and micro with ECON 0250 and ECON 0255. They will be given one course credit toward the economics major. Students who have completed a statistics course with a score of 6 or higher on IB statistics, or a grade of B or better on A-Level economics will be exempted from ECON 0210. Thus, they should begin their course of study of economics statistics with ECON 0211, or MATH 0310. If they choose to start with ECON 0211, they will need to replace the ECON 0210 with an elective.
Transfer of Credit: Students may take economics courses in approved programs (abroad and domestic) and have those courses count towards the major and/or the general graduation requirement. Summer school courses will generally not be given credit for the major unless there is an overriding reason to take a summer school course. Any summer school course must meet a minimum of six weeks and have at least 36 hours of class time. Students planning to take courses off-campus should discuss the proposed course(s) with their adviser and get pre-approval from the chair of the economics department. Upon completion of the course(s), students should submit their course material and a copy of their transcript along with the appropriate Application for Transfer Credit form to the department coordinator for departmental approval. After receiving departmental approval, students must submit their forms to the director of off-campus study for final approval. Courses having a BU (Business) or MGMT (Management) prefix will normally not be considered the equivalent of an economics course. No credit will be given for business courses taken over the summer. A maximum of one credit will be given for a business course taken through a junior year abroad business program. However, this credit will count as a general credit only, not as a major equivalent credit. Business courses taken in a non-business program will be considered on a case-by-case basis. Those that match the department's offerings, and have a strong liberal arts content, have the best chance of receiving credit.
II. POSTGRADUATE PREPARATION
Graduate programs in economics or finance [other than a Masters of Business Administration (MBA)] generally require a high degree of mathematical sophistication. Students thinking of continuing on in such a program are encouraged to do a joint major with mathematics, science or computer science, or if they do not to: (i) take MATH 0310 in place of ECON 0210; (ii) select economics electives with significant mathematically and statistically rigorous content [recommended courses fulfilling the elective requirements of the economics major include: ECON 0347, ECON 0380, ECON 0390, ECON 0411, ECON 0462, MATH 0318, and MATH 0410]; and (iii) take a number of additional courses in mathematics and computer science [recommended courses include: CSCI 0101, MATH 0315, MATH 0318, MATH 0323, MATH 0410, and MATH 0423]. Good training for graduate school includes being a Christian A. Johnson Statistics Specialist, and having worked as a research assistant in economics either here at Middlebury or at a Federal Reserve Bank of Economics Think Tank at least one summer before graduating. Students thinking about this option should discuss their plans with their adviser and other faculty members.
Masters of Business Administration (MBA) programs look for students who have taken a wide range of courses across the curriculum rather than for students who have narrowly focused on economics and math. Thus, it is not necessary for someone planning to go on in business or to an MBA program to have majored in economics. MBA programs normally expect that students have worked for a couple of years in business, government, or similar organization before they begin the MBA program. The appropriate coursework for these MBA programs is a wide range of liberal arts courses.
III. MINOR IN ECONOMICS
The economics minor consists of five courses: ECON 0150, ECON 0155, ECON 0250 or ECON 0255 (MATH 0121 is a prerequisite for ECON 0255), and two electives, one of which must be at the 0400-level or 0700-level. (Minors will be admitted to 0700 Workshops on a space available basis only.) Economics electives taken during the winter term will count towards the major or minor only if so designated in the winter term catalog. All economics minors must take at least three economics courses in the minor at Middlebury.
IV. COURSE OFFERINGS
ECON 0150 Introductory Macroeconomics (Fall, Spring)
An introduction to macroeconomics: a consideration of macroeconomic problems such as unemployment and inflation. Theories and policy proposals of Keynesian and classical economists are contrasted. Topics considered include: banking, financial institutions, monetary policy, taxation, government spending, fiscal policy, tradeoffs between inflation and unemployment in both the short run and the long run, and wage-price spirals. (There will be ten sections offered: six in the fall; four in the spring.) 3 hrs. lect., 1 hr. disc. SOC (Staff)
ECON 0155 Introductory Microeconomics (Fall, Spring)
An introduction to the analysis of such microeconomic problems as price formation (the forces behind demand and supply), market structures from competitive to oligopolistic, distribution of income, and public policy options bearing on these problems. (There will be nine sections offered: four in the fall; five in the spring) 3 hrs. lect. SOC (Staff)
ECON 0200 Health Economics and Policy (CW) (Fall)
We will apply standard microeconomic tools to the problems of health and health care markets. The course provides the fundamental tools with which to understand how the health care market is different from the markets for other goods. For example, students will learn about the dominant presence of uncertainty at all levels of health care, the government's unusually large presence in the market, the pronounced difference in knowledge between doctors and patients, and the prevalence of situations where the actions of some impose costs or benefits on others (e.g., vaccinations, drug research). (ECON 0155) (There will be two sections offered in the fall; one of which will be college writing) 3 hrs. lect. (J. Holmes)
ECON 0205 Economics of Investing (Fall, Spring)
This course explores introductory issues in the pricing of financial instruments and the organization of financial markets. This includes developing methods to price stocks and bonds, evaluate portfolios and understand financial derivatives, and applying these methods to actual financial data in an accessible and non-technical manner. This course does not count as an elective toward the economics major, but will count towards the economics minor. Students who have taken ECON 0316 or ECON 0317 are not allowed to register for ECON 0205. (ECON 0150 or ECON 0155) 3 hrs. lect. (S. Pecsok)
ECON 0210 Economic Statistics (Fall, Spring)
Basic methods and concepts of statistical inference with an emphasis on economic applications. Topics include probability distributions, random variables, simple linear regression, estimation, hypothesis testing, and contingency table analysis. A weekly one-hour lab is part of this course in addition to three hours of class meetings per week. (ECON 0150 or ECON 0155) Credit is not given for ECON 0210 if the student has taken MATH 0116, MATH 0310, or PSYC 0201 previously or concurrently. (There will be four sections offered: two in the fall; two in the spring) 3 hrs. lect., 1 hr. lab DED (fall: P. Sommers; spring: C. Myers )
ECON 0211 Introduction to Regression Analysis (Fall, Spring)
In this course regression analysis is introduced. The major focus is on quantifying relationships between economic variables. Multiple regression identifies the effect of several exogenous variables on an endogenous variable. After exploring the classical regression model, fundamental assumptions underlying this model will be relaxed, and further new techniques will be introduced. Methods for testing hypotheses about the regression coefficients are developed throughout the course. Both theoretical principles and practical applications will be emphasized. The course goal is for each student to employ regression analysis as a research tool and to justify and defend the techniques used. (MATH 0121 and ECON 0150 or ECON 0155, and ECON 0210; or by approval) (There will be four sections offered: two in the fall; two in the spring.) 3 hrs. lect., 1 hr. lab DED (fall: J. Maluccio; spring: P. Wunnava)
ECON/HIST 0220 American Economic History Since 1865 (CW) (Fall)
This course will provide an overview of the major themes in the growth and development of the modern American economy. Topics will include the economic aspects of agricultural stagnation in the post-bellum South, Northern industrialization, the rise of the railroads, and the changing role of banks and financial markets. We will also examine the role of the courts and government policy in American economic development, with special emphasis on the rise and decline of Laissez-Faire as the dominant mode of economic regulation in the nation's labor and financial markets. (ECON 0150 or ECON 0155) 3 hrs. lect. SOC HIS NOR (R. Prasch)
ECON 0225 Theories of Economic Development in Latin America (Spring)
This course is designed to provide a survey of the most important issues facing Latin American policymakers today. The course will place contemporary problems in their historical perspective and will use applied economic analysis to examine the opportunities and constraints facing the economies of Latin America. (ECON 0150) 3 hrs. lect. SOC AAL (J. Maluccio)
ECON 0230 Comparative Transitions (Not offered 2008-09)
This course explores the systemic transformation that has been occurring over the past decade-plus in the former socialist countries of Eurasia - especially Russia, China and Poland. We look at their varied experiences with macro-economic stabilization and growth, property rights reform and privatization, institutional development and integration into the world economy. Although the disciplinary focus will necessarily be on the economic aspects of the transition from socialist central planning to markets, attention is also given to the political and historical forces that have influenced this process. The countries of this region have followed widely divergent paths from socialism - some adopting rapid reform strategies, others choosing less radical policies and still others seeming not to follow any coherent blueprint. The inter-disciplinary focus of this class should allow us both to draw conclusions about the reasons for this variation and to better understand the consequences. (ECON 0150 or ECON 0155; or by approval) 3 hrs. lect. SOC AAL
ECON 0250 Macroeconomic Theory (Fall, Spring)
Macroeconomic theory analyzes whether the market effectively coordinates individuals' decisions so that they lead to acceptable results. It considers the effectiveness of monetary, fiscal, and other policies in achieving desirable levels of unemployment, inflation, and growth. The theories held by various schools of economic thought such as Keynesians, monetarists, and new classicals are considered along with their proposed policies. (ECON 0150 and ECON 0155) (There will be five sections offered: three in the fall and two in the spring.) 3 hrs. lect. (fall: D. Colander, R. Prasch; spring: P. Matthews)
ECON 0255 Microeconomic Theory (Fall, Spring)
Microeconomic theory concentrates on the study of the determination of relative prices and their importance in shaping the allocation of resources and the distribution of income in an economy. We will study the optimizing behavior of households in a variety of settings: buying goods and services, saving, and labor supply decisions. We will also examine the behavior of firms in different market structures. Together, the theories of household and firm behavior help illumine contemporary economic issues (discrimination in labor markets, mergers in the corporate world, positive and negative externalities, for example). (MATH 0121, ECON 0150 and ECON 0155) (There will be five sections offered: two in the fall; three in the spring.) 3 hrs. lect. (fall: A. Mitra, spring: J. Holmes)
ECON 0265 Environmental Economics (Spring)
This course is dedicated to the proposition that economic reasoning is critical for analyzing the persistence of environmental damage and for designing cost-effective environmental policies. The objectives of the course are that each student (a) understands the economic approach to the environment; (b) can use microeconomics to illustrate the theory of environmental policy; and (c) comprehends and can critically evaluate: alternative environmental standards, benefits and costs of environmental protection, incentive-based environmental policies, socially responsible business practices, the role of social capital in determining environmental outcomes, and challenges in the global commons. (ECON 0155) 3 hrs. lect. (J. Isham)
ECON 0316 Corporate Finance and Accounting (Fall)
Finance has become an integral part of economics, as shown by the number of Nobel Prizes awarded in recent years to scholars who have made contributions to the field. This course focuses on the financial side of the modern corporation, for the stakeholders as well as the shareholders. We start with financial accounting as a means of measuring the health of a company and of discerning the transparency and accuracy of its financial statements. (As Enron and other companies showed, it pays to be skeptical.) We then move to strategic planning and the growth of the firm, and to decisions on how to finance that growth as between equity and debt. We conclude with valuation models based on cash flow. At the end we hold a buy-side sell-side competition, in which students work in teams to value real companies and present them to the class as attractive investments. (ECON 0150 and ECON 0155 and ECON 0210) 3 hrs. lect., 1 hr. lab (S. Pardee)
ECON 0317 Investments and Financial Markets (Spring)
As wealth has grown in importance as an economic variable, professional economists and practitioners alike have studied the behavior of financial markets, and the behavior of people in those markets. The markets for equities, bonds, commodities, and foreign exchange are each quite independent, and yet prices in several markets may suddenly correlate, especially in a crisis. This course presents a wide range of techniques to analyze markets. In equities, we study valuation models and portfolio diversification. In bonds, we study the yield curve and concepts such as duration and convexity. In commodities, we study both fundamental analysis and technical analysis. In foreign exchange, we study interest rate parity and purchasing power parity. And, we study derivatives and options pricing models. The management of wealth ultimately depends on the management of risk, and we conclude with a study of risk management techniques. (ECON 0150 and ECON 0155 and ECON 0210) 3 hrs. lect., 1 hr. lab (S. Pardee)
ECON 0325 Economic Development: Theory and Practice (Not offered 2008-09)
This course will examine why some developing countries attain their goals and others do not. It will try to identify the factors that contribute to, or impede, the development process. By examining current data and applying economic theory, it will access suggested causes of and remedies for poverty, population pressure, unemployment, rural stagnation, and educational deficits. It will consider the roles of foreign trade, investment, and debt in the context of an interrelated world economy. It will also suggest roles to be played by the industrialized countries and international organizations in promoting economic development in the third world. (ECON 0150 and ECON 0155) 3 hrs. lect. (T. Warin)
ECON 0327 Economic Development in Africa (Fall)
This course will survey the main issues of economic development in Africa. We will begin with a review of the theory of economic growth and development, and will progress to applying it in the African context. We will attempt to identify the factors that impede or promote economic development and poverty reduction in Africa and will examine the roles of international trade, investment, development assistance, and globalization. Selected countries and cases will be studied in greater depth. Some additional problems we will consider are: mineral dependence and development; the consequences of AIDS; corruption, governance, and stagnation in Africa; and, the role of multilateral organizations such as the World Bank, the IMF and African Development Bank. (ECON 0150 and ECON 0155.) 3 hrs. lct. AAL (M. Lewin)
ECON 0330 Urban Economics (Fall)
How and why do cities form? Why do people live in the suburbs and commute to the Central Business District? Why do tech industries want to locate right next to each other in Silicon Valley? Are toll roads just there to annoy us, or is there some economic rationale for them? This course combines economic theory and empirical evidence to provide an overview of the forces beyond our spatial organization as well as a survey of urban problems relating to land use, traffic, housing, and racial segregation. (ECON 0155) 3 hrs. lect. SOC (C. Myers)
ECON 0335 European Economic Integration: Lessons and Perspectives (CW) (Fall)
This course introduces students to the European integration process and its beneficial and adverse effects. Specifically, we will ask: What is the role of Europe in the global economic system? What are the policy implications of an economic integration? Can integration only work when countries are at a similar stage of development? If not, what are the implications? We will also discuss economic integration in various parts of the world with particular reference to North America and Southeast Asia. (ECON 0150 and ECON 0155) 3 hrs. lect. EUR (T. Warin)
ECON 0340 International Economics: A Policy Approach (Fall, Spring)
This course provides an overview of international trade and finance. We will discuss why countries trade, the concepts of absolute and comparative advantage, and gains from trade. We will explore commercial policies, arguments for and against tariffs, non-tariff barriers, dumping and subsidies, the role of the WTO, as well as the pros and cons of regional free trade associations. In the second part of the course we will primarily concentrate on international macroeconomics, focusing on foreign exchange rates, balance of payments, origins of and solutions to financial crises and the history and architecture of the international monetary system. (ECON 0150 and ECON 0155) 3 hrs. lect. (M. Lewin)
ECON 0347 Individual, Social, and Political Choice (Not offered 2008-09)
How do individuals make choices? How do individual and group choices differ? In this course we will address these questions by providing an introduction to choice theory, prospect theory, social choice theory, and political economy. We will first develop the foundations of rational individual choice and consider critiques of standard "rationality" assumptions. We will examine challenges which arise in attempting to aggregate individual preferences into "social" preferences and various solutions to these challenges. Our focus will be on recent approaches taken in the field of political economics. (ECON 0155 and MATH 0121 required; ECON 0255 recommended) 3 hrs. lect. DED SOC
ECON 0356 Competition and Strategy (Spring)
This course addresses issues relevant to the central questions of competition among and strategies used by successful business and social organizations. We will focus on how firms achieve and sustain superior performance in the face of competitive pressures. The course couples the introduction of relevant concepts and analytical tools for industry and competitive analysis with their application to real-world case studies in a variety of industries. Students will be expected to develop a sophisticated understanding of the forces that drive competition and success through applied economic analysis, extensive public speaking and presentation practice and venture consulting engagements with early-stage Vermont-based organizations. (ECON 0150 and ECON 0155). 3 hrs. lect./lab. (M. Claudon)
ECON 0375 Monetary Theory and Policy (Spring)
This course will cover the determination of interest rates, portfolio theory, the demand for money, and the supply of money process. Emphasis will be on the difficulties faced by the Federal Reserve in its goals of achieving a steady growth in aggregate demand while doing its best to ensure that monetary disorder, such as that which characterized the Great Depression, does not reoccur. (ECON 0150 and ECON 0155) 3 hrs. lect. (R. Prasch)
ECON 0380 Game Theory I (Fall)
Game theory is general in scope and has been used to provide theoretical foundations for phenomena in most of the social and behavioral sciences. Economic examples include market organization, bargaining, and the provision of public goods. Examples from other behavioral sciences include social dilemmas and population dynamics. In this course students learn the basics of what constitutes a game and how games are solved. This course is meant to be a broad introduction; students with advanced training in economics (or math) are encouraged to enroll directly in ECON 0390. (ECON 0155 and MATH 0121 required; ECON 0255 recommended) 3 hrs. sem. (A. Mitra)
ECON 0390 Game Theory II (Spring)
This course is a more or less self-contained sequel to ECON 0380. The focus is on games with asymmetric information, and the list of topics includes games of moral hazard with hidden action or hidden knowledge, adverse selection games, mechanism design and contract theory, games of screening and signaling, and auctions. We shall also consider their application to such diverse fields as labor economics, finance, industrial organization and political economy. (ECON 0255 required; ECON 0380 recommended) 3 hrs. sem. (P. Matthews)
ECON 0401 Poverty, Inequality and Distributive Justice (Fall)
This seminar will explore recent theoretical and empirical research on socioeconomic inequality. The definitions, causes and consequences of inequality at both the individual (micro) and national and international (macro) levels will be considered. (ECON 0211 and ECON 0255) 3 hrs. sem. (P. Matthews)
ECON 0410 The Economics of “Sin”: Sex, Crime, and Drugs (Not offered 2008-09)
In this course we will apply traditional microeconomic principles to non-traditional topics such as adultery, prostitution, teen pregnancy, crime and punishment, drugs and drug legalization, and gambling. We will ask the following questions throughout the course: To what extent is "sinful" behavior rational and utility-maximizing? What role does the government play in regulating "sinful" behavior and what are the consequences of these government interventions? The primary focus will be on the United States but brief comparisons will be made to "sinful" behavior and policy interventions in other countries. (ECON 0211 and ECON 0255) 3 hrs. sem.
ECON 0411 Applied Econometrics (Fall)
This course is designed to further students' understanding of parameter estimation, inference, and hypothesis testing for single and multiple equation systems. Emphasis will be placed on specification, estimation, and testing of micro/macro econometric models and using such models for policy analysis and forecasting. Large cross-sectional as well as panel data sets will be used for estimation purposes. (ECON 0211 and ECON 0250 and ECON 0255; or by approval) 3 hrs. sem. (P. Wunnava)
ECON 0412 Empirical Finance (Spring)
How do hi-tech firms decide to launch new products? How do portfolio managers decide to invest in stocks of hi-tech companies? These are the kinds of practical issues we will cover in this course. Modern financial theory and practice revolve around quantitative techniques for estimating expected returns on investments, whether the launch of a new product or the creation of a new mutual fund, and for measuring the performance of those investments over time. In the first part of the course, you will delve into cash flow analysis as it can be applied to a wide range of situations. In the second part, you will study financial markets and techniques for trading and investing in those markets. At the end you will create an investment portfolio based on your own areas of expertise and your own style of investing. (ECON 0211 and ECON 0316) 3 hrs. sem., 1 hr. lab (S. Pardee)
ECON 0425 Seminar on Economic Development (Spring)
Much of the world still faces the daily pain of poverty. Developing countries have to accelerate their growth rates, eradicate poverty, reduce inequalities, address environmental concerns, and create productive employment. We examine the major analytic and policy issues raised by these challenges and study the need for a productive balance between market forces and positive state action. With the help of case studies from Asia, Latin America, and Africa, we focus on different development strategies adopted, the choice of policy instruments, and methods of implementation. (ECON 0250 or ECON 0255; or by approval) 3 hrs. sem. (A. Mitra)
ECON 0426 Asia's Emerging Markets (Not offered 2008-09)
Asia has emerged as a powerful player in today's global economy. This seminar will analyze in depth alternative paradigms and theories to explain this phenomenon. The experience of the "East Asian miracle" countries, along with newly emerging markets in China, India, and Vietnam, provide valuable lessons on trade, industrialization, and integration in the global economy. The role of the U.S., the World Bank, and International Monetary Fund will be analyzed. Finally, two key problem areas, the sustainability of the development process in this region and issues of political liberalism, will be examined critically. (ECON 0250 or ECON 0325; or by approval)
ECON 0428 Population Growth and the Global Future (Fall)
This course will show how economic analysis can be used to assess the impact of rapid population growth on economic development, the environment, and economic inequality. It will analyze the rapid "graying" of the industrialized countries and their struggle to cope with international migration. It will assess the causes of urban decay in the North and the explosive growth of cities in the South. The course will consider household-level decision-making processes; the effects of changing family structures; and the need to improve the status of women. (ECON 0250 or ECON 0255) 3 hrs. sem. (D. Horlacher)
ECON 0429 Trade and Foreign Aid in Latin America (Spring)
This course is designed to provide an in-depth examination of a number of critical issues that currently confront policymakers in Latin America. The topics of development, regionalization and free trade, and the efficacy of foreign aid will be analyzed in the context of Latin American economic development. (ECON 0250 or ECON 0255) 3 hrs. sem. AAL (J. Maluccio)
ECON 0430 The Post-Communist Economic Transition (Not offered 2008-09)
This course uses the post-communist transition in Eurasia to study the evolution of social institutions that affect economic performance – specifically, laws and enforcement methods, ways of allocating and securing property rights, and levels of corruption and trust. Drawing on material from Russia, China and the region's other recently marketized economies, we will investigate how, why and to what effect the norms, rules and organizations (both formal and informal) that enforce contracts and protect property have been created. And we will explore how the specific institutional trajectories of these countries shed light, more broadly, on the economic development process. (ECON 0250 or ECON 0255; or by approval) 3 hrs. sem.
ECON 0431 Economics of the European Union (Fall, Spring)
This course will introduce students to the major economies of Western Europe and also the economic functions and structure of the institutions of the European Union. The course aims to familiarize students with the theoretical economic and policy issues that are currently of concern in the European Union. Moreover, the course aims to analyze economic problems that are of particular relevance to the member states of the European Union, such as the coordination of policies within an intergovernmental supranational framework and how to sustain the integration dynamic. (ECON 0250) 3 hrs. sem. EUR (T. Warin)
ECON 0440 Modeling Macroeconomic Dynamics (Fall)
In this course we will introduce students to computational macroeconomic modeling. The objective is to enhance students' understanding of macroeconomics and improve their skills in applying its analytical tools in a policy context. We will begin with simple income-expenditure macro models and work up to more complex ones such as inter-temporal open-economy models. Some of the economic issues we will analyze include: the effect of international aid on growth and development in developing countries; output-inflation trade-offs; fiscal policy dynamics in an open economy; determination of the real equilibrium exchange rate; and, economic growth processes. While the emphasis will be on simulation some parameter estimation will be done. (ECON 0155 and ECON 0210 and ECON 0250, or by waiver.) 3 hrs. sem. (M. Lewin)
ECON 0444 International Trade (Not offered 2008-09)
We will study a variety of theories relating to trade between nations in goods, services, and assets. Effects and desirability of commercial policy, tariffs, and other controls on trade will be examined. Issues of export promotion, import substitution, strategic trade policy, foreign direct investment, role of multinationals, outsourcing, and economic integration will be analyzed in depth. We will also explore the relationship between increased capital flows, financial crises, and trade flows in the world economy. Particular attention will be paid to trade and economic development linkages in the context of the current debates on globalization. (ECON 0255 required; ECON 0340 recommended; or by approval) 3 hrs. sem.
ECON 0445 International Finance (Spring)
An analysis of the world's financial system and the consequences for open economies of macroeconomic interdependence. Particular topics include: exchange rate determination, balance of payments adjustments, and monetary and fiscal policies in open economies. Special attention is paid to the issues and problems of the European Economic Community and European integration and debt in developing countries. (ECON 0250) 3 hrs. sem. (M. Lewin)
ECON 0450 History of Economic Thought (Spring)
This course offers a historical and analytical perspective on the development of economic ideas. It asks the question: Why is economics what it is today? A number of international issues will be considered, such as the differential development of economic ideas in different countries, comparative advantage and its relation to trade, and the development and spread of socialist ideas. In this course students will read Adam Smith, Karl Marx, and Frederich Hayek. (ECON 0250 and ECON 0255; or by approval) 3 hrs. sem. HIS (D. Colander)
ECON 0455 Competitive Strategy (Fall)
What drives sustainability and market success in business and social organizations? How do competitive forces within and among industries shape competitive strategy? We will focus on the dynamics of how organizations create, execute and evaluate competitive strategies in diverse competitive environments using real-world cases. A premium will be placed on improving your writing and public speaking skills. Your Middlebury Solutions Group engagement will give you critical applied analysis and teaming experience in developing paths to profitability for early-stage enterprises. (ECON 0255) 3 hrs. sem./lab (M. Claudon)
ECON 0460 Industrial Organization: A Policy Approach (Spring)
This course uses models of monopoly and competition to investigate enterprise behavior and to consider implications for market structure and resource allocation. In addition to focusing on factors determining the number of market participants, the course examines the role of transactions costs, product differentiation, imperfect knowledge, and contestability in determining market outcomes. Special attention is given to issues of monopoly regulation and antitrust law in the United States and internationally. (ECON 0255) 3 hrs. sem. (T. Warin)
ECON 0462 Bargaining Theory and Behavior (Not offered 2008-09)
This seminar focuses on one topic: bargaining. The implications of bargaining theory and behavior are of widespread importance. For example, bargaining models provide the foundation for theories of labor-management interactions, foreign policy negotiations, and the division of resources within a family. We will examine the history of bargaining theory and will also ask a question not often considered in economics: How do people actually behave vis-à-vis the predictions of the models? To answer such a question, students will not only read scientific studies of bargaining theory and practice but will also take part in laboratory experiments designed to test various theories. (ECON 0255 required; ECON 0380 recommended)
ECON 0465 Special Topics in Environmental Economics (Fall)
The objective of this seminar is that each student achieves fluency in a set of advanced concepts in environmental economics. The seminar is divided into two main sections. First, we introduce the core theory and policy implications of environmental economics. These include the theory of externalities and public goods; the Coase theorem; and policy instrument choice. Empirical methods used to measure the costs and benefits of environmental policies are also introduced. Second, we study some selected topics: the economics of local air pollution and greenhouse gases; the design of market-based environmental policies; the economics of non-renewable resources, including fossil fuels and old-growth forests; and the management of renewable resources, including fisheries and second-growth forest resources. (ECON 0255) 3 hrs. sem. (N. Muller)
ECON 0470 Public Finance (Not offered 2008-09)
This course examines the role of government in modern market economies, focusing primarily on the United States. In particular we will explore the design and impact of government expenditure programs and taxation systems on the welfare and behavior of its citizens. Among the general questions considered are the following: When is government intervention in the economy appropriate? What is the most effective form of intervention? What effects do government policies have on incentives for firms, individuals, and others in the private sector? The course will cover a wide range of issues in public finance with a primary focus on current policy debates and issues. Topics covered include: school choice, pollution and the environment, income distribution and social insurance, health policy, Social Security, U.S. tax system and tax reform. (ECON 0255) 3 hrs. sem.
ECON 0475 Monetary Theory and Financial Institutions (Fall)
This seminar provides the student with the basic knowledge and analytical tools to operate in today's money and financial markets. We start with the markets themselves, how they are structured and how prices are determined, such as interest rates and foreign exchange rates. We then study private sector institutions, including banks, securities houses, insurance companies, and fund management companies, and the challenges they face in the Age of the Internet. And we close with a study of how the Federal Reserve and other central banks determine monetary policy. (ECON 0250) 3 hrs. sem., 1 hr. lab (S. Pardee)
ECON 0480 Labor Economics (Fall)
This seminar will explore the economics of labor markets from both theoretical and empirical perspectives. Topics covered include: labor force participation, wage determination, welfare and minimum wage policies, education and on-the-job training, compensating differentials, dual labor markets, inequality and discrimination, unions, immigration, employment relations, and household bargaining. (ECON 0255 required; ECON 0211 strongly recommended) 3 hrs. sem. (C. Myers)
ECON 0485 The Economics of Sports (Spring)
This is a survey course of topics illustrating how microeconomic principles apply to the sports industry. Topics covered will include the industrial organization of the sports industry (notably, issues of competitive balance and the implications of monopoly power), the public finance of sports (notably, the impact teams have on host municipalities), and labor issues related to sports (including player worth and discrimination). The prerequisites for this course are meant to ensure that students can both understand fundamental economic concepts and present the results of econometric research as they apply to the sports industry. (ECON 0210 and ECON 0211 and ECON 0255) (Two sections will be offered.) 3 hrs. sem. (P. Sommers)
ECON 0499 Experimental Economics (Fall)
We examine how people actually behave given economic incentives. Rather than learning economic models of behavior (e.g., consumption, investment, production) students in this class learn how to test these and other models using the experimental lab. Topics include: How and why do markets work? Do people act collectively to provide public goods? What are the determinants of bargaining outcomes? (ECON 0255 required; ECON 0380 strongly recommended) 3 hrs. sem. (Staff)
ECON 0500 Individual Special Project (Fall, Winter, Spring)
If you choose to pursue an area that we do not offer or go in depth in an area already covered, we recommend the Individual Special Project option. These ECON 0500 proposals MUST be passed by the entire department and are to be submitted to the chair by the first Friday of fall and spring semester, respectively. The proposals should contain a specific description of the course contents, its goals, and the mechanisms by which goals are to be realized. It should also include a bibliography. According to the College Handbook, ECON 0500 projects are a privilege open to those students with advanced preparation and superior records in their fields. A student needs to have a 3.5 or higher G.P.A. in Economics courses taken at Middlebury in order to pursue an Individual Special Project. ECON 0500 does not count towards one of the 10 courses for the major. (Staff)
ECON 0700 Senior Research Workshop (Fall, Winter)
Students interested in earning departmental honors may do so by taking a Senior Research Workshop (ECON 0700) during their senior year, of which up to four will be offered in 2008-2009, [or by arranging an independent thesis project (ECON 0701) with a professor that is approved by the entire department as an alternative.] These senior workshops will be composed of no more than eight students who will work independently on a project in a specific area for a semester and will meet to collectively discuss and present their research. Each of these workshops will have one or more prerequisite courses, and students who have prearranged a research topic with the professor will be given priority in admission to the seminar. To receive departmental honors the student must receive a minimum grade of A- in the Senior Research Workshop project and have a 3.5 or higher GPA in all economics courses (courses with Econ prefix) taken at Middlebury. (ECON courses taken through Middlebury Abroad Programs will be counted.) High Honors requires an A in the Senior Research Seminar and a 3.75 or higher economics GPA, and Highest Honors an A in the seminar and a 3.9 or higher economics GPA. (Approval required) (Fall: J. Holmes, P. Matthews; Spring: M. Lewin, T. Warin)