DEPARTMENT OF ECONOMICS

3223 Social Science Plaza B; (949) 824-5788
http://www.economics.uci.edu/
Jan K. Brueckner, Department Chair

Faculty / Undergraduate Program / Graduate Program / Courses

Economics is concerned with the way individuals or societies allocate scarce resources and distribute goods and services. Any situation requiring choice among competing alternatives can be viewed as an economic problem. Economic courses enable students to study the way individuals make these choices (microeconomics), the way governments make these choices (public choice), and the aggregate consequences of these choices (macroeconomics). In addition, the Economics curriculum addresses international trade, money and banking, and economic development of the less developed nations.

Faculty members in the Department of Economics have research and teaching interests that span a broad range of fields. In addition to strengths in micro theory, macroeconomics, and econometrics (Bayesian and classical), the Department has expertise in many applied fields, including economic history, industrial organization, international economics, labor economics, public choice and public finance, transportation economics, and urban economics. Members of the Department maintain close ties with members of the Department of Political Science, the Department of Statistics, and The Paul Merage School of Business. Members of the Department maintain affiliations with the Center for Economics & Public Policy, Institute for Mathematical Behavioral Sciences, Institute of Transportation Studies, Institute on Global Conflict and Cooperation, Center for the Study of Democracy, and program in International Studies.

Undergraduate Program

The Department offers majors in Economics, Business Economics, and Quantitative Economics, and an optional specialization in International Issues and Economics is available to students in all three majors. In addition, the Honors Program in Economics is open to high-achieving students in all three majors. The Department also offers a minor in Economics.

NOTE: Students may complete only one of the three Economics majors.

ADMISSION TO THE MAJORS

Freshmen: Preference will be given to those who rank among the highest using the selection criteria as stated in the Undergraduate Admissions section of this Catalogue.

Transfer-Student Applicants: Transfer applicants with the highest grades overall who satisfactorily complete course prerequisites will be given preference for admission. All applicants must complete one course in microeconomics, one course in macroeconomics, and two semesters/two quarters of approved first-year calculus.

Change of Major: Information about change-of-major requirements, procedures, and policies is available in the School of Social Sciences Undergraduate Student Affairs Office and at http://www.changeofmajor.uci.edu.

REQUIREMENTS FOR THE B.A. DEGREE

University Requirements: See pages 54-61.

School Requirements: See page 526.

Departmental Requirements for the Major in Economics

This major is designed for students seeking a broad education applicable to occupations in business, law, and government or as preparation for graduate school in the social sciences. School requirements must be met and must include 17 courses as specified below.

A.   Economics 20A-B.

B.   Economics 15A-B.

C.   Mathematics 2A-B and 4.

D.   Economics 100A-B-C.

E.   Economics 122A.

F.   Six additional Economics courses, one of which may be lower-division.

G.   A maximum of three four-unit courses selected from Economics 190-199 may be counted toward the major.

Sample Program - Economics Majors

Departmental Requirements for the Major in Quantitative Economics

The Department strongly urges students to consider the major in Quantitative Economics, which best prepares them for careers in business and finance, for law school, for M.B.A. programs, and for graduate studies in the social sciences. School requirements must be met and must include 19 courses as specified below.

A.   Economics 20A-B.

B.   Mathematics 2A-B, 3A or 6G, and 4.

C.   Economics 105A-B-C.

D.   Statistics 120A-B-C.

E.   Economics 123A-B.

F.   Five additional Economics courses, including at least four four-unit upper-division courses and one that satisfies the upper-division writing requirement. The upper-division electives must include two quantitative electives selected from Economics 107, 116A, 116B, 131A, and 135. Additional courses may be added to this list; up-to-date information is available at http://www.economics.uci.edu/.

G.   A maximum of three four-unit courses selected from Economics 190-199 may be counted toward the major.

NOTE: Students who are double majoring in Quantitative Economics and Mathematics may (i) substitute Mathematics 2D-E and 3A for Mathematics 4, (ii) substitute an upper-division probability and statistics sequence taught in the Mathematics Department for Statistics 120A-B-C, and (iii) substitute three upper-division Mathematics electives for upper-division Economics electives.

Sample Program - Quantitative Economics Majors

Departmental Requirements for the Major in Business Economics

The Business Economics major is for students seeking a business orientation in their study of economics. It does not replicate the traditional undergraduate business school curriculum. Instead, it offers a more tightly focused curriculum that is guided by the rigorous logic and integrative perspective of economics. School requirements must be met and must include 20 courses as specified below.

A.   Economics 20A-B.

B.   Economics 15A-B.

C.   Economics 25.

D.   Mathematics 2A-B and 4.

E.   Economics 100A-B-C.

F.   Economics 122A-B.

G.   Seven additional Economics courses, including at least four four-unit upper-division courses. Two of the electives must be selected from the following business electives list: Economics 125, 131A, 132A, 134A, 135, 142A-B, 145L, and 161A-B-C; and two of the electives must be selected from the following management electives list: Economics 140, 147A-B, 149 (when the topic is business decisions), 115, 151A-B, and 169 (when the topic is economics of international business). It is strongly recommended that students satisfy the upper-division writing requirement with one of the Economics electives.

H.   A maximum of three four-unit courses selected from Economics 190-199 may be counted toward the major.

Sample Program - Business Economics Majors

Specialization in International Issues and Economics

Students in any of the three Economics majors may complete the specialization in International Issues and Economics. Admission to the specialization requires approval in advance by the Economics Department. The admissions process begins with completing a form at the Department office. This approval should be applied for after the student has completed Economics 20A-B, but no later than the end of the junior year.

The specialization requires the completion of the following:

A.   International Studies 11 and 14 and Economics 13.

B.   Three upper-division international Economics elective courses selected from Economics 149 (when topic is poverty, growth, and development), 157, 161B-C, 163, 164A, and 169.

C.   Three additional international general education elective courses selected from International Studies 111A, 112A, 120, 121, 122, 123, 179 (if focus is on international economy); Political Science 141A, 141B, 141C, 141D, 143D, 143E; History 21A, 21B, 21C, 101. At most, only one lower-division elective may be taken.

Honors Program in Economics

Undergraduates in any of the three Economics majors may complete the Honors Program in Economics. Entry into the program requires a 3.4 GPA or better in upper-division Economics courses and an overall GPA of 3.2 or better. Undergraduates hoping to enter the program must apply no later than the spring quarter of their junior year. Students in the Honors Program must complete an honors thesis and the two-quarter Economics Honors Colloquium (Economics H190A-B; satisfies the upper-division writing requirement).

Economics Minor Requirements

Requirements for the minor in Economics are met by taking nine courses (36 units) as specified below:

A.   Core courses (28 units): Economics 15A-B¹, 20A-B², and either 100A-B-C or 105A-B-C.

B.   Electives (8 units): two upper-division Economics electives (excluding 199)³.

NOTE: Prerequisites for the Economics core courses include Mathematics 2A-B and 4.

¹Management 7 may not be used to substitute for Economics 15A-B. Furthermore, students will not received credit for Management 7 if taken after Economics 15A-B.
²Note that Economics 20A-B is a requirement of both the undergraduate major in Business Administration and the Economics minor.
³As noted in the Economics courses list that appears later in this Catalogue, some courses overlap with upper-division courses offered by The Paul Merage School of Business. Where there is overlap, students may use the course to count toward satisfying the upper-division requirements of the Business Administration major or the Economics minor, but not both.

Graduate Program

Faculty

The Department of Economics offers a Ph.D. degree program in Economics. Drawing upon the School's strong quantitative tradition, it specializes in public choice, transportation economics, urban economics, econometrics, and applied microeconomics. Admission is highly selective and is limited to students whose interests mesh closely with those of the faculty. By requiring a high degree of overlap between faculty and student research interests, the program offers extensive faculty contact within a tutorial framework. Motivated and well-qualified students find the graduate program highly attractive because of its small size and its great flexibility. Self-discipline and an inquiring mind are prerequisites.

ADMISSION

The deadline for application for admission is January 15 for fall quarter. Students are admitted for winter or spring quarters only under exceptional circumstances. Late applications are considered on a space-available basis. All applicants must take the Graduate Record Exam (GRE) prior to the application deadline. Applicants whose primary language is not English must also submit Test of English as a Foreign Language (TOEFL) scores. To be considered for any financial aid (including a teaching assistantship), students who are not citizens of countries where English is either the primary or dominant language as approved by the UCI Graduate Council must submit a passing score from the Test of Spoken English (TSE).

REQUIREMENTS

All students must show competence in the core areas of microeconomics, macroeconomics, and econometrics. This is done by taking the three-quarter required course sequences in microeconomics, macroeconomics, and econometrics, with no grade lower than a B and with a grade point average across these courses of at least 3.25. The Department may also require students to pass a written qualifying exam in one or more of the core course sequences after taking the courses.

Students take the oral candidacy examination based on their research. A well-prepared student should take this oral examination at the end of the second year.

Students also must master two fields of economics by taking a two-course sequence (possibly including independent reading courses) and writing a research paper in each field. Students also must enroll for at least four quarters in the graduate colloquium, in which attendance at regular Economics faculty research colloquia is supplemented by discussion of the papers presented and additional reading. Students are encouraged to become conversant with areas of current economic research early in their graduate careers, in order to facilitate a timely transition from meeting course and field requirements to thinking through a dissertation research plan.

Two or three quarters before the expected completion of the dissertation, the dissertation committee will organize an oral examination of the candidate's dissertation prospectus. Ordinarily, the prospectus will describe in detail the dissertation, and will typically be accompanied by at least one completed chapter of the dissertation.

Students are expected to complete their dissertation by the end of their fifth year. The maximum time permitted for completion of the Ph.D. is six years.

Concentration in Transportation Economics

Students can also pursue a Ph.D. in Economics with a concentration in Transportation Economics. This option draws upon the transportation researchers on the campus within the School of Social Sciences, The Henry Samueli School of Engineering, The Paul Merage School of Business, and the School of Social Ecology. Students benefit from association with the Institute of Transportation Studies, which facilitates student research by providing research assistantships and interdisciplinary seminars on all modes of transportation.

Requirements for the concentration are the same as those described above with the following three exceptions: (1) instead of the third quarter of microeconomics and macroeconomics, students may substitute specified courses such as Discrete Choice Econometrics (Economics 223A), Advanced Travel Demand Analysis (Engineering CEE220A), or Operations Research for Management (Management 201B); (2) one of the student's two required fields of competence must be transportation economics; the other must be a related field such as urban economics, labor economics, industrial organization, or a transportation-related field from outside economics (such as travel demand and flow theory, urban and transportation policy analysis, environmental impacts of transportation, or urban and transportation planning) subject to the approval of the Director of Graduate Studies for Economics; and (3) students must take at least one additional course from a list of designated courses in transportation and related subject areas.

Concentration in Public Choice

Students can also pursue a Ph.D. degree in Economics with a concentration in Public Choice. This is an interdisciplinary field, at the intersection of Economics and Political Science, which draws on quantitative tools to model the functioning of political institutions. Faculty from the Departments of Economics, Political Science, and Logic and Philosophy of Science and from The Paul Merage School of Business are involved in research that supports the concentration.

Students who elect this concentration are admitted under the normal procedures for the program in Economics and must fulfill all the requirements for the Economics degree with the following modifications: (1) one of the student's two required fields of competence must be public choice; included is a three-quarter core course in public choice, Economics 270A-B-C, which is jointly organized by faculty in the Departments of Economics and Political Science. (A background in economic theory is a prerequisite to this sequence.) The requirement for competence in a second field may be met with a one-quarter course, instead of two, if it provides sufficient fluency in the field; and (2) students must obtain a background knowledge in political science equivalent to that provided by a one-year undergraduate survey course, if they do not already have it.

Program in Law and Graduate Studies (J.D./Ph.D.)

Highly qualified students interested in combining the study of law with graduate research and/or professional qualifications in Economics are invited to undertake concurrent degree study under the auspices of UC Irvine's Program in Law and Graduate Studies (PLGS). Students in this program pursue a coordinated curriculum leading to a J.D. degree from the School of Law in conjunction with a Ph.D. degree in Economics. Additional information is available from the PLGS Program Director's office, (949) 824-4158, or by e-mail to plgs@law.uci.edu. A full description of the program, with links to all relevant application information, can be found on page 389 of this Catalogue and at http://www.law.uci.edu/plgs.

RESEARCH FACILITIES

UCI is a major research university and has an excellent library that offers in electronic and print formats more than 3.4 million volumes, as well as special interlibrary loan arrangements with the other University of California libraries. The School of Social Sciences provides computer rooms, conference rooms, and offices for graduate students. The Economics Department has a small library with current journals and unpublished working papers from other universities. Students also have access to advanced computing resources as well as PC and UNIX laboratories.

Currently, there are four research units that provide excellent research opportunities for Economics graduate students: the Institute of Transportation Studies, the Center for Research on Information Technology and Organizations, the Institute for Mathematical Behavioral Sciences, and the Center for Economics & Public Policy (CEPP), established in 2011, which seeks to improve analysis, formulation, and debate on economics-related public policy issues at the international, national, state, and local levels.

Courses in Economics

(Schedule of Classes designation: Econ)

NOTE: Students are reminded that each quarter of a sequential course (i.e., Economics 100A-B-C) must be taken in order. Priority for admission to upper-division Economics courses is given to Economics majors and International Studies majors.

LOWER-DIVISION

1 Introduction to Economics (4) F, W, S. An analysis of the problems society faces in organizing itself to provide goods and services. How decisions of government, business, and the individual relate to current economic problems such as unemployment, inflation, poverty, and environmental pollution. Open only to non-Economics majors. Credit will not be given for Economics 1 if taken concurrently or after Economics 20A or 20B. (III)

11 The Internet and Public Policy (4). How the Internet works. Current public policy issues concerning the Internet. Introductory economics. Communications law. Interactions between information technology, economics, and law. Case studies about Internet and communications policy. Same as ICS 11. (II or III)

13 Global Economy (4) S. Acquaints students with the fundamental patterns of the global economy. Emphasizes the historical roots and political implications of economic choices. Same as International Studies 13. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment. (III, VIII)

15A-B Probability and Statistics in Economics I, II (4-4) F, W. An introduction to probability, statistics, and econometrics. Emphasis on a thorough understanding of the probabilistic basis of statistical inference. Examples from economics. Prerequisites: Mathematics 2A-B and 4. No credit for Management 7 if taken after Economics 15A-B. Management 7 may not be used to substitute for Economics 15A-B. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment. (Va)

17 An Economic Approach to Religion (4) F. Introduction to how basic economic concepts such as demand, supply, consumption, production, competition, free-riding, innovation, regulation, and rent-seeking can be applied to understand observed religious behavior. Same as Religious Studies 17. (III)

20A-B Basic Economics I, II (4-4) F, W. 20A: The fundamentals of microeconomics. The behavior of firms and of consumers: markets, supply/demand, utility maximization, resource allocation, and efficiency. Economics 20A and 23 may not both be taken for credit. 20B: The fundamentals of macroeconomics. Government behavior: monetary and fiscal policy, inflation, and unemployment. Prerequisite: Economics 20A. Effective fall 2006, the content of Economics 20B is macroeconomics. This course cannot be taken to repeat Economics 20B taken prior to fall 2006. (III)

23 Basic Economics for Engineers (4). The fundamentals of microeconomics. The behavior of firms and of consumers: markets, supply/demand, utility maximization, resource allocation, and efficiency. Economics 23 and 20A may not both be taken for credit. (III)

25 The Economics of Accounting Decisions (4). Introduction to accounting concepts and principles, including the accounting model and accounting style, transaction analysis, and preparation of financial statements. An analysis of the similarities and differences between accounting and economic concepts (e.g., value, profits). Prerequisite: Economics 20A. Economics 25 and Management 30A may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

26A Managerial Accounting (4). An introduction to the fundamentals of management accounting, including the study of terms and concepts, comparisons of different costing systems, analysis of cost-volume profit relationships, preparation of information for planning, control, and evaluation of performance, and decision analysis. Prerequisites: Mathematics 2A-B and 4. Economics 26A and Management 30B may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

UPPER-DIVISION

100-119: GENERAL ECONOMICS

100A-B-C Intermediate Economics I, II, III (4-4-4) F, W, S. Determinants of supply and demand; operation of competitive and monopolistic markets; imperfections of the market system, explanations of unemployment, inflation, recessions; public policy for macroeconomic problems. Prerequisites: Economics 20A-B and Mathematics 2A-B or equivalent. For 100B: Economics 100A. For 100C: Economics 100B. Economics 100A-B-C and 105A-B-C may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

105A-B-C Intermediate Quantitative Microeconomics and Macroeconomics I, II, III (4-4-4) F, W, S. An advanced and mathematical version of Economics 100A-B-C for students in the Quantitative Economics major. Prerequisites: Economics 20A-B and Mathematics 2A-B, 3A, and 4. Economics 105A-B-C and 100A-B-C may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

107 Economics of Asymmetric Information (4). Focuses on the effects of asymmetric information in the markets for traditional economic goods and resources, such as labor, insurance, used cars, credit, and in auctions and bargaining problems. Prerequisite: Economics 100A or 105A. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

109 Special Topics in Economic Theory (4). Prerequisites vary. May be repeated for credit as topic varies. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

115 Behavioral Economics (4). Studies the behavioral and psychological biases in economics settings. Both individual decisions and games are discussed. Prerequisites: Economics 20A-B. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

116A-B Game Theory I, II (4-4). A two-quarter sequence on game theory. 116A: Extensive form games with perfect information, and coalitional games. The key solution concepts are Nash Equilibrium, Backward Induction, and the Core. Substantive examples include public good production, oligopoly, electoral competition, auctions, holdup, market entry, and voting. Formerly Economics 116. 116B: Bayesian games, extensive form games with imperfect information, zero-sum games, rationalizability, evolutionary equilibrium, repeated games, and bargaining. The key solution concepts are Bayesian Nash Equilibrium, Subgame Perfect Equilibrium, Maxminimization, and Evolutionary Stable Strategies. Prerequisites: Economics 15A-B and 100A or 105A. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

120-124: QUANTITATIVE METHODS

122A-B Applied Econometrics I, II (4-4). Introduction to econometrics emphasizing practical applications in microeconomics and macroeconomics. Prerequisites: Economics 15A-B, 20A-B. Economics 122A-B and 123A-B may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

122C Data Analysis Writing (4). A research writing course in econometrics focusing on individual research projects that are designed and written during the quarter. Students employ econometric analysis to address an economic question in a 20-page paper and present their findings to the class in a short presentation. Prerequisites: Economics 15A-B and 122A-B; satisfactory completion of the lower-division writing requirement. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

123A-B-C Econometrics I, II, III (4-4-4) F, W, S. 123A-B: Specification, estimation, and testing of econometric models. Applications in various areas of microeconomics and macroeconomics. 123C: Seminar course in which students do an original econometric research project. Prerequisites: Mathematics 2A-B and 4 or equivalent; Statistics 120A-B-C and Economics 100A-B-C. For 123C: satisfactory completion of the lower-division writing requirement. Economics 123A-B and 122A-B may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

124 Advances in Econometrics I (4) S. Aims to supplement the training in econometrics for students who have completed either Economics 122A-B or 123A-B-C by covering chapters in the two texts used in these sequences which were not covered. Prerequisites: Economics 122A-B or 123A-B.

125 Business Forecasting (4). Students learn how to produce forecasts of the behavior of economic (and other) variables. The techniques examined are linear regression, nonlinear regression, and nonparametric kernel regression, AR, MA, ARMA, ARIMA, and Box-Jenkins. Prerequisites: Economics 15A-B and 20A-B. Economics 125 and Management 180 may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

129 Special Topics in Quantitative Methods (4). Prerequisites vary. May be repeated for credit as topic varies. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

130-139: FINANCIAL ECONOMICS

131A The Economics of Risk and Uncertainty (4). The theory of insurance and joint-ownership of risky enterprises; optimal procedures for the allocation of uncertain payoffs. Prerequisites: prior or concurrent enrollment in Economics 15A-B or equivalent; Economics 100A-B or 105A. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

132A Introduction to Financial Investments (4). Modern theories of investment and their application to the study of financial markets. The relation between risk and return, diversification, asset pricing, efficient markets hypothesis, and the market valuation of stocks, bonds, options, and futures. Prerequisites: Economics 15A-B and 122A or equivalent; Economics 100A-B-C or 105A-B-C. Concurrent enrollment in Economics 100C or 105C sufficient. Economics 132A and Management 141 may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

134A Corporate Finance (4). Provides an overview of the modern theory and practice of corporate finance and focuses on two fundamental financial decisions; investment as well as financing. Prerequisites: Economics 100A-B-C or 105A. Economics 134A and Management 109 may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

135 Mathematics of Finance (4). Introduces the mathematics of finance with an emphasis on financial derivatives. After a review of certain tools from probability, statistics, and elementary differential and partial differential equations, concepts such as hedging, arbitrage, Puts, Calls, and the design of portfolios, the derivation and solution of the Blac-Scholes and other equations are discussed. Prerequisite: Mathematics 2J or 3A. Same as Mathematics 176. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

139 Special Topics in Financial Economics (4). Prerequisites vary. May be repeated for credit as topic varies. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

140-149: ECONOMICS OF PUBLIC AND PRIVATE ORGANIZATIONS

140 Managerial Economics (4). Managerial economics is a collection of concepts and methods for effective decision making. Explores how the tools of microeconomics, including game theory and industrial organization theory, can be used to make better managerial decisions, particularly those involving allocation of resources within firms. Prerequisite: Economics 100A-B. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

142A-B-C Industrial Organization I, II, III (4-4-4) F, W, S. 142A: The theory of market structure. Imperfect markets, government policies, and industry performance. 142B: Regulation and antitrust theory and performance in industries. 142C: Research in industrial organization. Prerequisites: Economics 15A-B and 100A-B or 105A. For 142C: satisfactory completion of the lower-division writing requirement. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

143 Energy Economics (4). The economics of markets for oil, natural gas, electricity, renewable energy and their interactions with each other and the rest of the economy. Effects of government intervention, traditional policy measures, economic policy issues arising from relationship of energy use and the environment. Prerequisites: Economics 100A-B-C or 105A. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

144A-B-C Urban Economics I, II, III (4-4-4). 144A: Why cities exist, economics of urban land use, housing demand and tenure choice, urban amenities. 144B: Economics of traffic congestion, housing policy analysis, Third World urbanization, urban public goods and services, crime, neighborhood effects. 144C: Allows students to apply knowledge of urban economics in the conduct of individual research. Prerequisites: Economics 20A-B; Economics 100A recommended. For 144C: satisfactory completion of the lower-division writing requirement. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

145 Health Economics (4). Considers why some people are healthier than others, why health outcomes differ across countries, the problems of moral hazard and of adverse selection that appear in health insurance, and how hospitals and physicians behave. Prerequisite: Economics 100A.

145E Economics of the Environment (4). Surveys economic aspects of natural resources, pollution, population, and the environment. Examines the causes of pollution, e.g., air, water, noise, toxic waste, and nonoptimal utilization of certain resources, e.g., fisheries; analysis of public polices regarding these problems. Emphasis on microeconomic aspects of environmental problems. Prerequisites: Economics 15A-B and 122A or equivalent; Economics 100A-B or 105A. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

145F Economics of the Environment II (4). Applications of the tools covered in Economics 145E to such topics as global warming, destruction of the ozone layer, and emissions trading. Emphasis on independent research papers. Syllabus and classes include writing technique. Prerequisites: Economics 15A-B, 145E, and satisfactory completion of the lower-division writing requirement. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

145L Economics of Law (4). Examination of several economic concepts which are useful in understanding legal rules: externalities, the assignment of property rights, and Coase's theorem. Examples are drawn from the fields of pollution control, no-fault insurance, medical malpractice, and product liability. Prerequisites: Economics 100A-B or 105A, or concurrent enrollment in Economics 100B. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

147A Corporate Governance (4). Studies topics in the internal organization of firms, including rent seeking, incentive contracts, principal-agent problems, internal labor markets, contests, and herd behavior. Prerequisite: Economics 100A. Formerly Economics 147. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

147B Economics of Strategy (4). Uses of tools of economics, game theory in particular, to develop an understanding of business decision making. Deals with questions such as how the firm decides what kind of business to be in, how large should it be, and others. Prerequisites: Economics 100A-B-C or Economics 105A. Economics 147B and Management 110 may not both be taken for credit. Economics 147B and Management 168 may not both be taken for credit. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

148 Business Decisions (4). Surveys normative and descriptive models of decision-making behavior, with an emphasis on organizational and policy contexts. Topics include rational choice theory, biases and heuristics, framing effects, and overconfidence. Management fads, panics, and herd behavior are also discussed. Prerequisites: either Anthropology 10A-B-C or Sociology 10A-B-C or Social Sciences 10A-B-C, or Mathematics 2A-B and Statistics 7 or Management 7. Same as Sociology 148.

149 Special Topics in Economics of Public and Private Organizations (4). Prerequisites vary. May be repeated for credit as topic varies. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

150-159: HUMAN RESOURCES

151A-B-C Labor Economics and Human Resources I, II, III (4-4-4). 151A: Labor demand, labor supply, human capital, personnel economics, and other topics. 151B: Labor market discrimination, compensating wage differentials, immigration, and other topics. 151C: Original research by students. Prerequisites: Mathematics 2A-B; Economics 15A and either 100A-B or 105A-B. For 151C: satisfactory completion of the lower-division writing requirement. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

152A Economic Anthropology (4). Economic systems in comparative perspective: production, distribution, and consumption in market and non-market societies; agricultural development in the third world. Prerequisite: one course in general science, anthropology, economics, geography, or sociology. Same as Anthropology 125A. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment. (VIII)

157 Economic Development (4). Considers the process of economic development across the globe and why some countries are rich and others poor. Discusses the major problems facing developing countries, such as population growth, education, capital formation, environmental protection, and international trade. Prerequisites: Economics 20A-B. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

158 Economics of Education (4). Arms students with tools, concepts, and evidence that can be used to analyze complex policy questions in education, enabling students to arrive at their own reasoned judgments about how to improve education. Prerequisites: Economics 15A, 100A, and satisfactory completion of the lower-division writing requirement. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

159 Special Topics in Economics in Human Resources (4). Prerequisites vary. May be repeated for credit as topic varies. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

160-169: MACROECONOMICS

161A Money and Banking (4). Basic elements of money and banking: institutional features and economics of financial markets and, in particular, of the U.S. banking system; determinants of interest rates; the Federal Reserve and its role in the money supply process; effects of money on output and inflation. Prerequisites: Economics 100A-B-C or 105A-B-C. Concurrent enrollment in 100C or 105C sufficient. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

161B International Money (4). Open economy macroeconomics and determination of exchange rates. Asset-market approach to the balance of payments. Internal and external balance in the economy. Macroeconomic policies under fixed and floating exchange rates. The international monetary system and institutions. Prerequisites: Economics 100A-B-C or 100A-B and concurrent enrollment in 100C. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

161C International Trade and Commercial Policy (4). Determination of trade flows and the relative prices. Gains from trade, the terms of trade, and income distribution. Imperfect competition and international trade. The effect of tariffs, export subsidies, and import quotas. The effects of free and restricted trade on economic welfare. Prerequisites: Economics 15A-B or equivalent; 100A-B or 100A and concurrent enrollment in 100B. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

161D Advanced Money and Banking (4). Studies business cycles in the United States during the last century. The first portion of the course reviews the theoretical models employed to study economic fluctuations and empirical methods used to measure fluctuations. Prerequisites: Economics 15A-B; 100A-B-C or 105A-B-C. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

163 Communism in Russia and China (4). Examines the politics, economics, and history of revolutionary Marxism during the twentieth century. Begins by discussing the theoretical foundation of communism and then contrasting those theories with the actual institutions established in communist nations and with socialist, capitalist, and democratic systems. Prerequisites: Economics 20A-B. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

164A The Industrial Revolution in Western Europe (4). How do economists explain the process of economic development during the past three centuries? How has the process of industrialization affected living standards? In focusing on these questions, students learn how to apply economic theory and quantitative methods to the study of historical issues. Prerequisites: Economics 100A-B-C or 105A; satisfactory completion of the lower-division writing requirement. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

169 Special Topics in Development Economics (4). Prerequisites vary. May be repeated for credit as topic varies. Economics, Quantitative Economics, and Business Economics majors have first consideration for enrollment.

H190A-B Economics Honors Colloquium I, II (4-4). Colloquium required for honors students in Economics, Quantitative Economics, and Business Economics. Introduces students to independent research. Helps students plan a research program. H190A: Prepares students for thesis writing. H190B: Students complete their thesis. Prerequisites: must be enrolled in the Honors Program in Economics; satisfactory completion of the lower-division writing requirement.

192 Tutoring in Economics (2). Enrollment limited to participants in the Economics Peer Tutoring Program. No more than eight units earned in this course may be counted toward the 180 units required for graduation. Satisfies no degree requirement other than contribution to the 180-unit total. May be taken for credit four times.

199 Independent Study (1 to 5). May be repeated for credit as topics vary.

GRADUATE

200A-B-C Graduate Colloquium for Economics I, II, III (2-2-2) F, W, S. Weekly reports and colloquia by faculty, students, and visitors. Supplemented by class discussion of these presentations and other material on current research methodology. Prerequisite: admission to graduate program in Economics or consent of instructor. May be repeated for credit.

203A Mathematics for Economists (4). Gives students the mathematical background required for graduate work in economics. Topics covered include multivariate calculus, differential equations, and linear algebra. Prerequisite: graduate standing or consent of instructor.

205A Research Writing in Economics (4). For Economics graduate students who are writing their required research paper in an applied field. How to write an original paper in economics. Guidance for specific papers. Prerequisite: admission to the graduate program in Economics.

210-219: GRADUATE ECONOMIC THEORY

210A-B-C Microeconomic Theory I, II, III (4-4-4) W, S. Theoretical microeconomics. Emphasis on the meaning and empirical interpretation of theoretical models. Topics include theory of the firm, theory of the market, theory of the consumer, duality theory, application to econometrics, general equilibrium and welfare economics, uncertainty, game theory. Prerequisite: graduate standing or consent of instructor.

210D-E-F Macroeconomic Theory I, II, III (4-4-4) F, W, S. Advanced macroeconomic theory including alternative macroeconomic models, microeconomic foundations of macroeconomics, investment and growth theory, inflation and unemployment, rational expectations and macroeconomic policy, wealth effects, crowding out and fiscal policy, money and interest, open economy models. 210E: Corequisite: Economics 211L. Prerequisite: graduate standing.

211L Macroeconomics Theory II Laboratory (2) W. Overview of stochastic processes; introduction to dynamic programming; two equilibrium concepts; Ricardian equivalence; real business cycle model; complete versus incomplete markets; asset pricing and the equity premium puzzle. Corequisite: Economics 210E. Prerequisite: graduate standing. Satisfactory/Unsatisfactory only.

219 Special Topics in Economic Theory (2 to 4) F, W, S. Prerequisites vary. May be repeated for credit as topics vary.

220-229: QUANTITATIVE METHODS

220A-B-C Statistics and Econometrics I, II, III (4-4-4). 220A: Covers probability mathematical statistics necessary to prepare students for econometric study and empirical work. Topics include probability theory, distributions, sampling, and classical point estimation. A likelihood perspective is emphasized. 220B: Begins with Bayesian point estimation. Then covers interval estimation and hypothesis testing from both classical and Bayesian perspectives, followed by a general discussion of prediction. Finally, all these techniques are applied to the standard linear regression model under ideal conditions, and Generalized Least Squares (GLS) is introduced. 220C: Begins by relaxing the ideal conditions of the standard regression model. Potential topics include kernel density estimation, instrumental variables (IV), two stage least squares (2SLS), panel data models, and simulation-based Bayesian methods, including Gibbs sampling, the bootstrap, econometric time series, discrete choice and count models, sample selection, and duration models. Covers both Bayesian and classical asymptotic methods.

221A-B-C Statistics and Econometrics Laboratory I, II, III (2-2-2). Discussion of problems in statistics and econometrics and their relationship to statistical and econometric theory. Instruction in the use of computers for applied econometric work. Corequisites: Economics 220A-B-C.

223A Discrete Choice Econometrics (4). Specification, estimation, and testing of discrete choice models, with emphasis on cross-sectional and panel data models and applications. Topics include models for binary, ordinal, censored, and count data; sample selection; treatment effects; latent variables; Bayesian and classical simulation-based inference; Markov chain Monte Carlo techniques; simulated likelihood estimation. Students use computer packages to apply models and techniques to real data. Prerequisites: Economics 220A-B-C-D.

224A Time Series Econometrics (4). Econometric analysis of time series data. Moving average and autoregressive series, regression analysis, Box-Jenkins techniques, computational methods, and causality conditions. Prerequisites: Economics 220A-B-C-D.

229 Special Topics in Social Dynamics Seminar (4). Prerequisites vary. May be repeated for credit as topics vary.

230-239: ECONOMIC AND FINANCIAL HISTORY

231A-B Institutions in Historical Perspective I, II (4-4). Investigates economic and political institutions across the world and throughout history. Focuses on institutions such as property rights, political regimes, regulations, legal systems, corporate organization, and social norms. Prerequisites: Economics 210 A-B-C-D-E-F or consent of instructor.

232 Business Cycles in Historical Perspective (4). Investigates business cycles in the United States and worldwide during the last two centuries. Topics include causes and consequences of business fluctuations, monetary and fiscal policy, models of fluctuations, and empirical macroeconomics. Prerequisites: Economics 210A-B-C-D-E-F or consent of instructor. Formerly Economics 262A.

233 European Economic History (4). Focuses on European economic history between 1500 and 1910. Examines the causes of the Industrial Revolution and globalization. Particular topics: productivity growth, transport improvements, technological change, capital markets, property rights, international trade. Prerequisites: Economics 210A-B-C-D-E-F or consent of instructor. Formerly Economics 242A.

234 American Economic History (4). Focuses on American economic history from colonization onwards. Topics include the development of legal systems, transport systems, financial markets, industrialization, migration, immigration, technological change, and the consequences of slavery. Prerequisites: Economics 210A-B-C-D-E-F or consent of instructor. Formerly Economics 244A.

239 Special Topics in Financial Economics (2 to 4). Prerequisites vary. May be repeated for credit as topics vary.

240-249: MICROECONOMICS

241A-B Industrial Organization I, II (4-4). Analysis of the structure and economic performance of markets, and the impact of public policy and their efficiency and equity. Effects of information structure. 241A: Oligopoly, cartels, mergers, vertical integration, patents, innovation, antitrust, and regulation; 241B: price flexibility and dispersion, auctions, search and industrial structure, intrafirm organization. Prerequisites: Economics 100B and 203A.

241C Industrial Organization III (4). Open to graduate students who have completed the first two quarter of the graduate Industrial Organization (IO) sequence and to other students with consent of instructor. Students are expected to have started a field paper in IO during the earlier quarters, and will finish a completed draft of it during this quarter. Prerequisites: Economics 100B, 203A, and 241A-B; graduate standing or consent of instructor.

243A Game Theory (4). A formal introduction to noncooperative game theory. Topics include properties of Nash Equilibrium and equilibrium refinements, dynamic games, repeated games, games with imperfect information, and games with incomplete information. Prerequisites: Economics 201A-B-C; graduate standing or consent of instructor.

243B Advanced Game Theory (4). Provides advanced instruction and research opportunities in game theory for students interested in using game theory in their research. Prerequisites: Economics 243A and consent of instructor.

245 Empirical Methods in Applied Microeconomics (4). Focuses on the empirical methods used in modern applied microeconomics. Teaches students methods that can be applied to produce original research in applied fields using cross-sectional and panel data. Applications will be drawn heavily from labor, public, health and development economics.

249 Special Topics in Microeconomics (2 to 4). Prerequisites vary. May be repeated for credit as topics vary.

250-259: LABOR ECONOMICS

251A-B Labor Economics I, II (4-4). Analytic and empirical study of labor markets. Topics may include labor supply and demand, human capital, educational sorting, life-time earnings profiles, discrimination, unemployment, and unions; several econometric techniques are taught as needed. Prerequisites: Economics 203A and graduate standing or consent of instructor.

259 Special Topics in Labor Economics (2 to 4). Prerequisites vary. May be repeated for credit as topics vary.

260-269: MACROECONOMICS

260A-B Monetary Economics I, II (4-4). 260A: Focuses on the derivation and estimation of state-of-the-art Dynamic Stochastic General Equilibrium (DSGE) models, with particular emphasis on models useful for monetary policy. 260B: Surveys recent issues on monetary policy in uncertain environments. Examines settings where both the policy makers and the private sector are uncertain of future outcomes or the underlying economic structure. Formerly Economics 225A-B.

263A-B Advanced Macroeconomics I, II (4-4). 263A: Students build Dynamic Stochastic General Equilibrium (DSGE) macroeconomic models from microeconomic foundations. This approach emphasizes intertemporal optimization by firms and households and typically incorporates nominal rigidities such as sluggish price and/or wage adjustment. 263B: Extensively studies policy in dynamic models. Topics: rule versus discretionary-based policy and its implications for macroeconomic stability and multiple equilibria; the design of optimal monetary policy; economic policy with model uncertainty and when the economic model is unknown.

269 Special Topics in Macroeconomics (2 to 4). Prerequisites vary. May be repeated for credit as topics vary.

270-279: PUBLIC CHOICE

270A-C Seminar in Public Choice I, III (4-4). Public choice lies at the intersection of economics and political science. This course involves the use of tools derived from economics to understand the behavior of governments and of citizens when they deal with politics. Prerequisite: graduate standing and Social Science 111H. Same as Political Science 270A-C.

272B-C Public Economics II, III (4-4). 272B: Covers the theory of public goods and models of decentralized provision of such goods, including voluntary provision, voting, bureaucratic provision, and preference relevation mechanisms. 272C: Covers two broad categories of government expenditure policies, redistribution programs and social insurance, from a theoretical and empirical perspective. Prerequisites: Economics 210A-B-C.

279 Special Topics in Public Choice (2 to 4). Prerequisites vary. May be repeated for credit as topics vary.

280-289: URBAN AND TRANSPORTATION ECONOMICS

281A-B Urban Economics I, II (4-4). 281A: Economic reasons for the existence of cities, analysis of urban spatial structure, urban sprawl, Third World urbanization, hedonic price analysis, housing tenure choice. 281B: Housing in the portfolio, land-use controls, rent control, homelessness, neighborhood effects, urban quality-of-life measurement, and subcenters. Prerequisite: Economics 210A or equivalent.

282A-B Transportation Economics I, II (4-4). 282A: Applies microeconomic concepts of demand, costs, pricing, investment, and project evaluation to analyze transportation activities. Empirical studies include travel demand using discrete models, and cost functions. 282B: Policy analysis in the presence of road transport externalities (such as environmental spill-overs), imperfect instruments, and other economic distortions such as imperfectly priced networks and imperfect competition. Connections of transportation economics with environmental economics, public finance, spatial economics and industrial organization. Prerequisite: graduate standing or consent of instructor.

285A-B-C Colloquium for Transportation Science I, II, III (2-2-2). Selected perspectives on transportation based on the study of human behavior. Organized by Interdisciplinary Program in Transportation Science. Research presentations by faculty, students, and visitors supplemented by class discussion. Satisfactory/Unsatisfactory only. Prerequisite: graduate standing or consent of instructor. May be repeated for credit as topics vary.

289 Special Topics in Urban and Transportation Economics (2 to 4). Prerequisites vary. May be repeated for credit as topics vary.

290-299: SPECIAL COURSES

290 Dissertation Research (2 to 12). Prerequisite: consent of instructor. May be repeated for credit.

299 Independent Study (2 to 4). Prerequisite: consent of instructor. May be repeated for credit.