College of Arts and Sciences

Economics

Chairman Kevin Lang

Associate Chairman Michael Manove

Director, Undergraduate Studies Todd Idson

Professors Baxter, Brodley, Chamley, Doeringer, Ellis, Harris, Jones, King, Kotlikoff, Lang, Lipman, Lucas, Ma, Manove, Margo, Mookherjee, Newman, Perron, Vogelsang

Associate Professors Botticini, Gilchrist, Idson, Neeman, Tandon

Assistant Professors Butt, Fernandez-Val, Gourio, Huynh, Miao, Olivetti, Pavlov, Rysman, Verdelhan, Visaria

Visiting Professor Glazer

Visiting Assistant Professor Mani

Instructor Cati

Professors Emeriti Hunt, Kyn, Papanek, Streeten

The study of economics is an excellent preparation for those who plan careers in business and finance, law, government, and nonprofit organizations. As an applied social science, economics provides the basis for analyzing many of the successes and failures of our society. Understanding economics is a basis for informed citizenship.

An economy is made up of businesses producing goods and services for sale; individuals working, receiving income, and spending that income on the goods and services; and governments taxing businesses and individuals and providing services not available from the private sector. The manner in which this complex system is organized and coordinated through a series of interrelated markets is the subject of economics.

Microeconomics focuses on the functioning of individual markets, examining the interaction of decision makers such as consumers, wage earners, corporations, and government agencies. Special issues addressed from this perspective include environmental and energy problems, unions, agriculture, health, and other social policies.

Macroeconomics focuses on the functioning of the economy as a whole, examining issues such as unemployment, inflation, economic growth, and international trade. Macroeconomics is of special interest now given the magnitude of our nation's trade deficit, fluctuations in exchange rates, and the changing unemployment situation.

Concentration in Economics (2204)

Prerequisites CAS EC 101 or 111, 102 or 112.

Principal Courses Minimum requirement: nine courses with grades of C or higher, three of which must be CAS EC 201 (formerly EC 303) or 211 Intermediate Microeconomic Analysis, EC 202 (formerly 304) or 212 Intermediate Macroeconomic Analysis, and EC 305 Economic Statistics. CAS EC 201, 202, and EC 305 should be taken before the senior year. SMG SM 221 Statistical and Economic Decision Making I or CAS MA 214 Applied Statistics is an acceptable substitute for CAS EC 305. CAS MA 213 Basic Statistics and Probability is a prerequisite for MA 214. Students choose the remaining six principal courses from CAS EC 311 through EC 699. No course taken at another institution after matriculation in the College of Arts and Sciences may normally be transferred toward the principal courses required for completion of the economics concentration. Petitions for approval of transfer courses must be submitted in writing to the Undergraduate Instruction Committee of the Department of Economics. Metropolitan College courses are considered transfer courses. Departmental approval of transfer courses is required.

Related Courses Students choosing economics as their concentration are required to demonstrate a proficiency in calculus by completing any of the following with a grade of C or higher: CAS MA 121, 122, 123, 124, 127, or 129 or by achieving at least a 3 on the appropriate calculus Advanced Placement Examinations.

TOP OF PAGE

Concentration in Economics and Mathematics (1704)

Prerequisites CAS EC 101 or 111, 102 or 112, CAS MA 123 and 124, or 127, or 129.

Principal Courses The minimum requirement for a concentration in economics and mathematics is eight courses in economics and six in mathematics with grades of C or higher. The economics requirement should be distributed as follows: CAS EC 201 (or 211) Intermediate Microeconomics, EC 202 (or 212) Intermediate Macroeconomics, EC 305 Economic Statistics, EC 501 Microeconomic Analysis, EC 502 Macroeconomic Analysis, EC 414 Introduction to Econometrics, and four other courses selected from EC 311 through EC 699. SMG SM 221 and CAS MA 214 are acceptable substitutes for CAS EC 305. The mathematics requirement is described under Mathematics. Substitutions may be made with the approval of the interdepartmental committee for this joint concentration.

Minor Concentration in Economics (2204)

Students concentrating in other fields in CAS and minoring in economics are required to take CAS EC 101 or 111, 102 or 112, 201 or 211, 202 or 212, and three other courses from EC 311 through EC 699, to be chosen in consultation with their economics advisor and the advisor in their field of concentration. Students must earn a minimum grade of C in courses taken toward the minor concentration. No more than two of these courses may be transfer courses.

BA/MA in Economics (2204)

The BA/MA program in economics is designed for the superior student. It gives the graduate a stronger base of knowledge and skills in economics, and at the same time accelerates completion of the MA degree. Candidates should apply for this program by the end of their sophomore year, after completing at least CAS EC 201 or 211, 202 or 212, and 305. Thirty-six courses must be completed for the program, requiring nine semesters of study. With two sessions of summer school, the candidate could receive the MA degree in four years. At least eight full economics courses at the graduate level are required, including core courses in micro- and macro-theory and quantitative methods. These eight courses, four of which may be counted also toward fulfilling requirements of the BA degree, must be passed with a grade of B– or higher.

The departmental BA/MA statement and further information are available from the Graduate Studies Coordinator in the department. The BA/MA program is not available to BUCOP students. Please refer to Special Courses and Programs under College of Arts and Sciences on this site for general information about BA/MA programs.

TOP OF PAGE

BA in Economics and Mathematics (1704)/ BA/MA in Economics (2204)

This BA/MA program is identical to that of the BA/MA program in economics described above, except that the candidate must satisfy all requirements for the joint concentration in economics and mathematics as well as the MA in economics. The departmental BA/MA statement and further information are available from the Graduate Studies Coordinator in the economics department.

Organizations

The Undergraduate Economics Association (UEA) sponsors seminars, career planning speakers, and social events during the year and is open to concentrators and non-concentrators.

Omicron Delta Epsilon, the international Honor Society in Economics, is described under Honor Societies on this site.

Teaching Awards

Two awards are offered by the Department of Economics for excellence in teaching. One is the Gerald L. Gitner Award for Excellence in Undergraduate Teaching. The other is the Neu Family Award for Excellence in Teaching in Economics. These awards encourage and maintain the outstanding level of instruction that economics undergraduates receive at Boston University.

TOP OF PAGE

Courses

Courses marked with a (†) satisfy divisional studies requirements.

Note: While qualified undergraduates may be welcome in some 500-level courses, interested students should seek guidance from their advisor.

Principal courses are offered each semester in large lectures, taught by senior faculty members. Additionally, there are discussion sections associated with the large lectures. These sections are led by teaching assistants and meet weekly in groups of 30 for an hour.

†CAS EC 101 Introductory Microeconomic Analysis

The first semester of a standard two-semester sequence for those considering further work in management or economics. Coverage includes economics of households, business firms, and markets; consumer behavior and the demand for commodities; production, costs, and the supply of commodities; price determination; competition and monopoly; efficiency of resource allocation; governmental regulation; income distribution; and poverty. 4 cr, either sem. (SS)

†CAS EC 102 Introductory Macroeconomic Analysis

The second semester of a standard two-semester sequence for those considering further work in management or economics. National economic performance; the problems of recession, unemployment, and inflation; money creation, government spending, and taxation; economic policies for full employment and price stability; and international trade and payments. 4 cr, either sem. (SS)

†CAS EC 111 Introductory Microeconomic Analysis—Special Achievement

Prereq: consent of instructor. Covers the same material as CAS EC 101 but in more depth and at a more advanced level. For this section, a knowledge of algebra is highly desirable. 4 cr, 1st sem.

†CAS EC 112 Introductory Macroeconomic Analysis—Special Achievement

Prereq: consent of instructor. Covers the same material as CAS EC 102 but more thoroughly and rigorously and at a more advanced level. For this section, a knowledge of algebra is highly desirable. 4 cr, 2nd sem.

CAS EC 201 Intermediate Microeconomic Analysis

Prereq: CAS EC 101 or 111. Determination of commodity prices and factor prices under the differing market conditions of competition and monopoly. (This course was formerly numbered CAS EC 303 and cannot be taken for credit in addition to EC 303.) 4 cr, either sem.

CAS EC 202 Intermediate Macroeconomic Analysis

Prereq: CAS EC 102 or 112. Determination of aggregate income and employment. Analysis of fiscal and monetary policy. Inflation and incomes policy. Problems of the open economy. (This course was formerly numbered CAS EC 304 and cannot be taken for credit in addition to EC 304.) 4 cr, either sem.

CAS EC 211 Honors Intermediate Microeconomic Analysis

Prereq: CAS EC 111 and one of MA 121, 122, 123, 124, 127, or 129, or consent of instructor. Coreq: recommended CAS EC 305. Similar to EC 201, but makes extensive use of mathematics, including calculus. Shows how consumers, firms, and governments use the tools of microeconomics to analyze decisions. Students learn to think like an economist and use abstract models to make sense of real-world problems. 4 cr, 1st sem.

CAS EC 212 Honors Intermediate Macroeconomic Analysis

Prereq: CAS EC 112, and one of MA 121, 122, 123, 124, 127, or 129, or consent of instructor. Coreq: recommended CAS EC 305. Similar to EC 202, but makes extensive use of calculus and places greater emphasis on the microeconomic foundations of macroeconomics, demonstrating the importance of these foundations for the implications of macroeconomic models and of desirable macroeconomic policies. 4 cr, 2nd sem.

CAS EC 305 Economic Statistics

Prereq: CAS EC 101 or 111 and EC 102 or 112. Introduction to fundamentals of statistical inference, estimation and tests of hypotheses, regression and analysis of variance, nonparametric statistics, and applications using automatic computation programmed packages. 4 cr, either sem.

CAS EC 320 Economics of Less-Developed Regions

Prereq: CAS EC 101 or 111 and EC 102 or 112. Theoretical and empirical examination of the structural changes associated with the process of economic development; special reference to poor regions and countries; rigorous analysis of criteria for policy judgments in developing planning and programming. 4 cr, either sem.

CAS EC 323 Behavioral Economics

Prereq: CAS EC 201. Introduction to a new field in economics that challenges the traditional model of rational decision-making and uses research in psychology to construct alternative models. Covers the theory of choice under certainty, uncertainty, and temptation; biases in judgment; social preferences. 4 cr, either sem.

CAS EC 325 The Economics of Poverty and Discrimination in the United States

Prereq: CAS EC 201 (or 211 or 303) and EC 305. Examines who is poor in the United States and how the evidence of poverty has changed over time. Various economic theories for the causes of poverty and discrimination are presented for examination and discussion. 4 cr, 1st sem.

CAS EC 332 Market Structure and Economic Performance

Prereq: CAS EC 201 (or 211 or 303). Structure of the American economy. The theory of imperfect competition. Topics include firm concentration and conglomeration, consumer ignorance and market failure, and advertising and technological change as part of market performance. 4 cr, 1st sem.

CAS EC 333 Market Organization and Public Policy

Prereq: CAS EC 201 (or 211 or 303) or EC 332. Discussion of selected markets determined by the instructor. Introduction to antitrust and regulatory policy. 4 cr, either sem.

CAS EC 337 Economic Analysis of Legal Issues

Prereq: CAS EC 101 or 111. Economic analysis of current important legal issues. Contributions of economics to analysis of contracts, torts, property, and crime. Effects of property rights on allocation of resources and distribution of income. Market and nonmarket schemes of regulating the environment. 4 cr, 2nd sem.

CAS EC 341 Monetary and Banking Institutions

Prereq: CAS EC 202 (or 212 or 304). Survey of commercial and central banking institutions. Examination of macro relations between financial organizations and principal objectives of stabilization policy. 4 cr, 1st sem.

CAS EC 342 Monetary and Banking Theory

Prereq: CAS EC 341 or consent of instructor. After a brief survey of the development of modern monetary theory, concentration on selected theoretical aspects of monetary economics and financial organization covered in CAS EC 341. Additional emphasis on capital theory and macroeconomic models. Research paper required. 4 cr, either sem.

CAS EC 355 Economics of the Workplace and Public Policy

Analysis of economic theories of human resources management and labor relations as they relate to wage determination, human capital investment, and labor productivity. Analyzes public policies toward unions, collective bargaining, and workplace regulation using historical materials and contemporary cases. 4 cr, 2nd sem.

CAS EC 356 Economics of the Labor Market

Prereq: CAS EC 201 (or 211 or 303). Application of current theories of labor supply and demand, wages, education and experience, immigration, labor efficiency, discrimination, and unemployment. Appraisal of the effects of government policies on labor markets. 4 cr, either sem.

CAS EC 363 Race and the Development of the American Economy: A Global Perspective

Prereq: CAS EC 101 or CAS EC 111 or consent of intructor; meets with CAS AA 363. Surveys the economic history of African Americans within the context of the development of the American and global economies. Topics include the economics of slavery; race and industrialization; the Great Migration; anti-discrimination legislation; and the historical origins of contemporary racial inequalities. 4 cr, 2nd sem.

CAS EC 365 Economic Institutions in Historical Perspective

Prereq: CAS EC 101 and EC 102. Historical development and role of institutions underlying market economies. Topics include contract enforcement and trading institutions, financial institutions, property rights in land, environmental resources such as water management and fisheries, economic infrastructure, regulation of labor, and capital markets. 4 cr, 2nd sem.

CAS EC 367 Economics of the Public Sector

Prereq: CAS EC 201 (or 211 or 303). Basic principles of public finance; consideration of classical and modern attitudes toward government revenues and expenditures. Survey of problems related to public debt and budget making. Evaluation of fiscal policy as an instrument of control. 4 cr, 1st sem.

CAS EC 368 Contemporary East Asian Economics

Prereq: CAS EC 101 or 111 and EC 102 or 112. (Meets with CAS IR 368.) An introduction to the economics of Japan, Korea, and Taiwan. Topics include Japanese firms, labor markets, finance, monetary and fiscal policies, industrial policies, and Taiwanese and Korean post-1960 economic development. 4 cr, 1st sem.

CAS EC 369 Economic Development of Latin America

Prereq: CAS EC 101 or 111 and EC 102 or 112. Contemporary issues of economic and social policy. Macroeconomic issues: inflation, stabilization, and the debt crisis. Foreign trade and economic restructuring. Poverty and income distribution. Role of the state. 4 cr, either sem.

CAS EC 371 Environmental Economics

Prereq: CAS EC 201 (or 211 or 303). Role of economics in environmental planning. Economic analysis of the causes of pollution and its control through taxes, the use of property rights, and standards. Application of cost-benefit models as an aid in policy decisions affecting the environment. 4 cr, 2nd sem.

CAS EC 377 Government, Business, and Labor

Prereq: CAS EC 201 (or 211 or 303). Examines economic growth from the perspective of the structure, conduct, and performance of business. Combines economic theories of conduct and strategy with industry case studies and evaluates the effect of government policy toward business and labor on the performance of the economy. 4 cr, 2nd sem.

CAS EC 387 Introduction to Health Economics

Prereq: CAS EC 201 (or 211 or 303). Concepts of health economics applicable to both developed and developing countries. Topics include effect of health on the economy, effect of health care on health, hospital behavior, health work-force supply, and demand for health care. 4 cr, 2nd sem.

CAS EC 391 International Economics I

Prereq: CAS EC 201 (or 211 or 303). The pure theory of international trade. Topics include comparative advantage and gains from trade, tariff and nontariff barriers to trade, and case studies in international economic policy. 4 cr, either sem.

CAS EC 392 International Economics II: Problems and Policy

Prereq: CAS EC 202 (or 212 or 304) and EC 305. Basic issues of international finance. Topics include the balance of payments, balance of payments adjustments, theories of exchange rate determination, and case studies in international economic policy. 4 cr, either sem.

CAS EC 401, 402 Senior Independent Work

Prereq: CAS EC 305 or MA 214 strongly recommended. Variable cr, 1st & 2nd sem.

CAS EC 403 Game Theory

Prereq: one of CAS MA 121, 122, 123, 124, 127, or 129 or consent of instructor. Models of decision-making in which the choices of different individuals interact: basic equilibrium notions in normal form games, including signaling games and repeated games. Applications include auctions, foreign policy, takeover bids, entry deterrence, cooperation and conflict, financial markets, and public goods. 4 cr, 2nd sem.

CAS EC 404 Economics of Information

Introduction to the field of information economics and its applications. Covers a wide range of situations in which players have access to different private information and this private information differently affects their incentives and strategic behavior. 4 cr, 1st sem.

CAS EC 414 Introduction to Econometrics

Prereq: CAS EC 305 or equivalent. Single equation models, hypothesis testing, econometric problems (errors in variables, heteroscedasticity, autocorrelation), instrumental variables, and simultaneous equation models. Emphasis on application to a variety of economic problems through the use of computer program packages. 4 cr, 2nd sem.

CAS EC 491, 492 Directed Study in Economics

Variable cr, 1st & 2nd sem.

CAS EC 501 Microeconomic Theory

Prereq: CAS EC 201 or equivalent and EC 505. Covers the basic concepts and techniques of microeconomic theory. Topics include consumer demand and its foundation on preferences and budget constraints, economics of uncertainty and imperfect information, production theory, applied competitive equilibrium analysis, elementary game theory, and imperfect competition. 4 cr, either sem.

CAS EC 502 Macroeconomic Theory

Prereq: CAS EC 202 or equivalent, or consent of instructor. Brief overview of macroeconomics, leading to successive focus on long-run economic growth and inflation, and on short-run fluctuations with emphasis on the role of fiscal and monetary policy. Readings from research journals; introduction to analysis of macroeconomic data. 4 cr, either sem.

CAS EC 505 Elementary Mathematical Economics

Prereq: CAS MA 121, or consent of instructor. Stresses the formulation of economic problems in mathematical terms. Topics covered include partial derivation, total differentials, constrained maximization, matrix algebra, dynamic analysis, and discounting. 4 cr, either sem.

CAS EC 507 Statistics for Economists

Prereq: CAS EC 305 and elementary calculus, or consent of instructor. Covers descriptive statistics, measures of association, dispersion, frequency distribution, probability, sampling distributions, estimation, and hypothesis tests. Introduces multivariate regression analysis, with emphasis on specification, testing, and interpretation of econometric models. Required use of statistical software packages to generate results. 4 cr, either sem.

CAS EC 508 Econometrics

Prereq: CAS EC 507 or consent of instructor. Provides standard econometric tools for performing and evaluating empirical economic research in academic or business settings. Introduces basic concepts: quantification of uncertainty using confidence intervals, inference of causal relationships in regressions, and prediction based on regression estimates. Use of statistical software. 4 cr, either sem.

CAS EC 515 Economics of Information

Prereq: CAS EC 201 or CAS EC 211 and one of CAS MA 121, 122, 123, 124, 127 or 129, or consent of instructor. Recommended: CAS EC 403. Introduction to the field of information economics and its applications. Covers a wide range of situations in which players have access to different private information and this private information differently affects their incentives and strategic behavior. 4 cr, 1st sem.

CAS EC 517 Economic Models of Social Learning and Coordination

Prereq: one calculus course numbered CAS MA 121 or higher, CAS EC 201 or 501, and EC 202 or 502 (EC 515 recommended); or consent of instructor. Economic models analyzing the relationship between rational economic decisions and flows of information, with diverse micro- and macro-economic applications. 4 cr, 2nd sem.

CAS EC 521 Development Policy

Prereq: CAS EC 201 (or 211 or 303) and EC 202 (or 212 or 304). Analysis of the problems of economic development, with emphasis on economic growth, macroeconomic stability, income distribution, and structural change. In a case study using historical data, students analyze a current problem and policy measures that might address it. 4 cr, 1st sem.

CAS EC 531 Market Structure and Industrial Organization

Prereq: consent of instructor. Focuses on the main interactions between firms and consumers under different market conditions and market structures. Among the issues discussed: profit maximization, monopoly power, price discrimination, bundling, oligopoly and imperfect competition, entry deterrence, quality choice, and advertising. 4 cr 1st sem.

CAS EC 541 Topics in Monetary Theory and Macroeconomics

Prereq: consent of instructor. Combines monetary economics, macroeconomics, and finance. Focus on the interactions among money, interest rate, and consumption and on their consequences for monetary policy and asset prices (bonds, stocks, and currencies). 4 cr, 1st sem.

CAS EC 542 Money and Financial Intermediation

Prereq: basic calculus and CAS EC 341 or 342, or consent of instructor. The role of money and financial institutions in the economy. The money supply process, models of money demand, financial markets, interest rates and asset prices, and the transmission of monetary policy. Financial intermediary management and regulation; derivatives and risk management. 4 cr, 2nd sem.

CAS EC 551 Economics of Labor Markets

Prereq: CAS EC 201 (or 211 or 303) and EC 202 (or 212 or 304) or consent of instructor. Economic behavior of labor markets and labor market institutions in the United States. Wage determination, labor allocation, discrimination, economics of trade unions, and industrial relations. Implications of labor market behaviors for public policy. 4 cr, either sem.

CAS EC 552 Economic Organization and Labor Markets

Prereq: CAS EC 201 (or 211 or 303) and EC 356, or consent of instructor. Examines the role of market failures, economic power, and public policy in determining wages, human capital investments, and labor productivity. Neoclassical, new institutional, and organizational theories for analyzing the economics of labor markets are contrasted and evaluated using both quantitative and case study evidence. 4 cr, 2nd sem.

CAS EC 561 Public Economics I

Prereq: CAS EC 201 (or 211 or 303) or consent of instructor. Applies microeconomic theory to public-policy decisions worldwide, using a methodology of applied welfare economics or cost-benefit analysis. Applications are to project evaluation, taxation, regulation, shadow pricing, privatization, policy impact analysis, and valuation of external effects such as pollution and congestion. 4 cr, 1st sem.

CAS EC 562 Public Economics II

Prereq: CAS EC 561. Selected topics from recent experience of the United States and other countries, including efforts at tax reform, welfare programs, and analysis of other government expenditure programs. 4 cr, 2nd sem.

CAS EC 565 Economic Institutions in Historical Perspective

Historical development and role of institutions underlying market economies. Topics include contract enforcement and trading institutions, financial institutions, property rights in land, environmental resources such as water management and fisheries, economic infrastructure, regulation of labor, and capital markets. 4 cr, 2nd sem.

CAS EC 569 African American Economic History

Prereq: CAS EC 101 or 111 and junior standing. Introduction to current research in African American economic history. Topics include slavery and its aftermath, the long-term evolution of racial economic differences, segregation, voting rights, and anti-discrimination legislation. Also offered as CAS AA 569. 4 cr, 1st sem.

CAS EC 571 Energy and Environmental Economics

Prereq: CAS EC 201, 211, 303, or 501. Environmental resources and markets characterized from physical, economic, and legal standpoints. Welfare arguments for public sector intervention. Methodologies for policy assessment and simulation analyzed, including project analysis, new technology, evaluation models, deterministic and econometric models. 4 cr, 1st sem.

CAS EC 572 Public Control of Business

Prereq: CAS EC 201, 211, 303, or 501 or consent of instructor. Examines economic theory, case studies of antitrust policy, government regulation of private industry, and operation of state owned enterprises. Case studies are drawn from both industrialized and developing countries. 4 cr, 1st sem.

CAS EC 581 Health Economics I

Prereq: CAS EC 501. Demand for insurance and health care, moral hazard, and adverse selection. Supply of health care, quality and price competition. Physician agency, payment systems, capitation, risk management, and managed care. Emphasis on U.S. institutions, although concepts are relevant to other countries. 4 cr, 2nd sem.

CAS EC 591 International Economics

Prereq: CAS EC 501 or consent of instructor. Theory of international trade; empirical evidence from both industrialized and developing economies. The factor content of trade, technology and trade patterns, scale economies and imperfect competition, elements of economic geography. Policy interventions: tariffs, the exchange rate, trading blocs, and political economy of reform. 4 cr, 1st sem.

CAS EC 595 International Finance

Prereq: CAS EC 502 or consent of instructor. Applies economic tools to open-economy macroeconomics. Topics include the determinants of the current account, exchange rate management, international capital markets, and growth in the world economy. Topical issues: the formation of the Euro; debt and financial crisis in developing countries. 4 cr, 2nd sem.

TOP OF PAGE

Published by Trustees of Boston University
One Sherborn Street
Boston, MA 02215

22 October 2007
Boston University
Questions
Credits