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 one semester or two quarters of approved calculus.

Participating Faculty

Marigee Bacolod: Labor economics, econometrics, and microeconomics

Duran Bell: Models of social processes

Volodymyr Bilotkach: Industrial organization, transportation economics, and microeconomics

Marianne Bitler: Labor economics, econometrics, and microeconomics

Dan Bogart: Economic history, institutions, infrastructure and economic development

William A. Branch: Macroeconomics

David Brownstone: Econometrics and transportation economics

Jan K. Brueckner: Urban economics, public economics, industrial organization, and housing finance

Jiawei Chen: Industrial organization, econometrics, finance

Linda R. Cohen: Political economy, social choice, government regulation, and government policy toward research and development

Art DeVany: Economic theory, industrial organization

Gordon J. Fielding: Urban and transportation economics

Michelle R. Garfinkel: Macroeconomics, political economy and conflict

Amihai Glazer: Political economy

Ivan Jeliazkov: Theoretical and applied econometrics, Bayesian inference, Markov chain Monte Carlo, computation in social sciences

Igor Kopylov: Microeconomics, decision theory, game theory

R. Duncan Luce: Theory of measurement, individual decision theory, response times

Julius Margolis: Political economy of national defense and government behavior

Francesca Mazzolari: Labor economics and public economics

Michael McBride: Microeconomics, game theory, political economy

Martin C. McGuire: Public finance, international trade, economics of peace and security

Fabio Milani: Macroeconomics, monetary economic, time-series econometrics, international money and finance

David Neumark: Labor economics

Min Ouyang: Macroeconomics, industrial organization, computational economics

Dale Poirier: Econometrics, both theoretical and empirical, specializing in Bayesian econometrics

Giuseppe Ragusa: Econometrics

Priya Ranjan: International trade

Gary Richardson: Economic history, immigration, institutions, and economic development

Guillaume Rocheteau: Monetary theory, macroconomics, labor economics, search theory

Jose Antonio Rodriguez-Lopez: International macroeconomics

Donald G. Saari: Social choice, voting theory, economic theory and mathematical economics

Stergios Skaperdas: Economic theory, political economy

Kenneth A. Small: Urban economics, transportation economics, discrete-choice econometrics, environmental economics

Christian Werner: Mathematical geography

Affiliated Faculty

Dennis J. Aigner: Statistical and econometric methodology, efficiency estimation

Frank Bean: Immigration, population, public policy

Marlon G. Boarnet: Urban planning, urban economic development

Michael L. Burton: Economic anthropology, cognitive anthropology; kinship, gender, and households

Frank Cancian: Economic anthropology, comparative social inequality

Christopher Carpenter: Health economics, labor economics, and policy evaluation

Greg Duncan: Economics of education, program evaluation, child development

Paul J. Feldstein: Economics of health care

Bernard Grofman: Mathematical models of decision making, electoral rules and reappointment

Mireille Jacobson: Health economics

Phillipe Jorion: Empirical research in investment, global portfolio investments, predicting the risk and return of foreign currencies, managing financial risk, and derivatives markets

Marek Kaminski: Voting models, democratization, political consequences of electoral laws

Richard McKenzie: Public choice

Andrew Policano: Macroeconomics, monetary theory and policy

Jean-Daniel Saphores: Environmental and natural resource economics and policy

Brian Skyrms: Game theory and decision making

Carole J. Uhlaner: Comparative political participation, formal models of political behavior

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 and macroeconomics, and the four-quarter required course sequence in econometrics.

A student can take the oral candidacy examination after completing the 10 required core courses with no grade lower than a B and with a grade point average across all graduate courses of at least 3.25. The student must also complete a research paper that consists of an extended literature review in a subfield approved by the graduate committee or a replication and extension of an empirical paper published in a refereed economics journal. A well-prepared student should take this oral examination at the end of the fourth or fifth quarter. The normative time for advancement to candidacy is two years (six quarters).

Students also must master two fields of applied 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.

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.

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.

RESEARCH FACILITIES

UCI is a major research university with an excellent library, as well as special interlibrary loan arrangements with other University of California libraries. The School of Social Sciences provides a computer laboratory. 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. Three Organized Research Units, the Institute of Transportation Studies, the Center for Research on Information Technology and Organizations, and the Institute for Mathematical Behavioral Sciences, provide research opportunities for graduate students.

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-B. (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. (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. Formerly Economics 110A-B. No credit for Management 7 if taken after Economics 15A-B. Management 7 may not be used to substitute for Economics 15A-B.

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. (III) Effective fall 2006, the content of Economics 20B is macroeconomics. This course cannot be taken to repeat Economics 20B taken prior to fall 2006.

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. Formerly Economics 102A. Economics 25 and Management 30A may not both be taken for credit.

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.

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.

101A-B Advanced Macro- or Microeconomics (4-4). 101A: Consumption and investment theories. Theories of money demand and supply. 101B: A presentation of the theory of production and distribution, relying heavily upon formal mathematical models. Prerequisites: Economics 100A-B-C and Mathematics 2A-B and 4.

104A History of Economic Thought (4). Discussion of the principal schools of economic thought. Emphasis on ideas expressed by Smith, Malthus, Ricardo, Marx, Jevons, J.B. Clark, Bohm-Bawerk, Wicksell, Marshall, and Keynes. Assignments include readings (in English) of important selections from the original works. Prerequisite: Economics 20A-B.

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.

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.

109 Special Topics in Economic Theory (4). Prerequisites vary. May be repeated for credit as topic varies.

115 Behavioral Economics (4). Studies the behavioral and psychological biases in economics settings. Both individual decisions and games are discussed. Prerequisites: Economics 20A-B.

116 Game Theory (4). An introduction to non-cooperative game theory. Topics include Nash Equilibrium, Subgame perfect equilibrium, dynamic games, bargaining, repeated games, and cooperation. Prerequisites: Economics 15A-B and 100A or 105A.

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.

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.

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.

124A Time Series Analysis (4). Introduction to the basic techniques of time series analysis. Univariate time series models and forecasting. Multivariate models. Transfer function models. Relations between time series models and econometric models. Prerequisite: Economics 123A.

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.

129 Special Topics in Quantitative Methods (4). Prerequisites vary. May be repeated for credit as topic varies.

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.

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.

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.

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 ofportfolios are discussed. Prerequisites: Mathematics 2A-B-J. Same as Mathematics 176.

139 Special Topics in Financial Economics (4). Prerequisites vary. May be repeated for credit as topic varies.

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.

141A-B-C Public Economics I, II, III (4-4-4). 141A: Examines the role of government expenditure in the economy from both a theoretical and an empirical perspective, with a focus on two broad categories of government expenditures policies: social insurance and redistribution programs. Analysis of taxation. 141B: Theory of public goods, externalities, voting models, analysis of bureaucracy, the Tiebout model, income redistribution, intergovernmental grants. 141C: Allows students to apply knowledge of public economics in the conduct of individual research. Prerequisites: Economics 100A-B or 105A or consent of instructor. For 141C: satisfactory completion of the lower-division writing requirement. Same as Political Science 127A-B-C.

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.

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.

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.

144T Mathematical Analysis of Transportation Networks (4). Models of transportation demand; optimal utilization of transportation networks; cost-benefit analysis of network design projects; the economic impact of transportation networks. Prerequisites: Economics 20A-B. Same as Social Science 118A.

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.

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.

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.

146 Public Policy Issues (4). An examination and interpretation of the public policy areas such as schooling, housing and homelessness, occupational licensing, F.D.A. drug approval, credit bureaus, the U.S. Postal Service, and auto emissions. Prerequisites: Economics 15A-B or equivalent; 100A-B-C or 105A; satisfactory completion of the lower-division writing requirement.

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.

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.

148A-B Political Economy of National Defense I, II (4-4). 148A: Analysis of the adoption of military solutions to international problems; military budgets, weapons policy, and procurement; distribution of benefits and costs of military systems. Emphasis given to nuclear military policy. Focuses on empirical and descriptive works on policy and practice. 148B: Research seminar. Research paper required. Prerequisites: Economics 20A-B.

148I-J-K Political Economy of International Relations I, II, III (4-4-4). 148I-J: Migration, trade, and finance in competitive markets; bargaining and compacts; hegemony and imperialism; alliances; multinational firms; international institutions; international law; war and national boundaries; common markets; nationalism; super power conflicts. 148K: Research seminar. Prerequisites: prior or concurrent enrollment in Economics 15A-B or equivalent; Economics 20A-B.

149 Special Topics in Economics of Public and Private Organizations (4). Prerequisites vary. May be repeated for credit as topic varies.

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.

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. (VIII)

152M Marriage and Bridewealth (4). The rules by which children are positioned within a social system and by which men claim rights over women vary widely among societies. Analyzes these rules on the basis of a formal theory of wealth allocations between and among corporate groups that challenge neoclassical models. Prerequisites: Anthropology 2A and Economics 20A-B, or consent of instructor. Same as Anthropology 126G.

152P Evolution of Social Formations I (4). Models and ethnographic descriptions of noncommodity economic relationships of the form that characterize intergroup and intragroup economic processes of many tribal societies. Includes analyses of gift exchange and resource allocation within the household. Prerequisites: Economics 20A-B; Economics 152A or Anthropology 125A recommended. Same as Anthropology 125P. (VIII)

154A Economics of Complex Systems (4). Students are required to write a paper about social systems as complex adaptive systems. Lectures are presented by interactive video from UCLA. Prerequisites: Economics 20A-B and satisfactory completion of the lower-division writing requirement.

155A Economics of the Family (4). Students write and rewrite papers on topics that are suggested by the models and literature in the "economics of the family." Prerequisites: Economics 15A-B or equivalent; 100A-B-C or 105A; satisfactory completion of the lower-division writing requirement.

156 The Economics of Population Issues (4). Applies economic analysis to population issues, including determinants of key aspects of demographic change—fertility, mortality, internal and international migration—and their implications. Shows how economics can be used to study couples' decisions about how many children to have. Prerequisites: Economics 15A-B, 20A-B, and satisfactory completion of the lower-division writing requirement. Economics 100A-B-C or 105A and 122A-B are recommended.

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.

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.

159 Special Topics in Economics in Human Resources (4). Prerequisites vary. May be repeated for credit as topic varies.

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.

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.

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.

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.

162A The Japanese Economy (4). An analysis of the structure and performance of the Japanese economy in the post-World War II period. The mechanism and policies of rapid growth. Japan's industrial structure, labor market, and financial system. United States-Japanese trade friction and policy issues. Prerequisites: Economics 15A-B or equivalent; 100A-B-C.

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.

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.

164B The Industrial Revolution in the United States (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.

169 Special Topics in Development Economics (4). Prerequisites vary. May be repeated for credit as topic varies.

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.

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.

201A Graduate Student Prospectus Seminar (4). Graduate students present their dissertation prospectus and job market papers to other graduate students and faculty. All graduate students on the job market must enroll and present their job market papers, and all third-year graduate students are strongly encouraged to enroll. Prerequisite: graduate standing. 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.

206 How to Write a Paper (2 to 4). A course on writing. Also discusses how to make an oral presentation, how to go about doing research, and how academic journals operate. Grade based on two written assignments in which student edits and revises a paper.

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-D Statistics and Econometrics I, II, III, IV (4-4-4-4). 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. 220C: Begins by relaxing the ideal conditions of the standard regression model. Topics include kernel density estimation, Generalized Least Squares (GLS), instrumental variables (IV), two stage least squares (2SLS), panel data models, and simulation-based Bayesian methods, including Gibbs sampling. 220D: Begins by reviewing estimation theory and the bootstrap. Topics include econometric time series, discrete choice and count models, sample selection, and duration models. Covers both Bayesian and classical asymptotic methods.

221A-B-C-D Statistics and Econometrics Laboratory I, II, III, IV (2-2-2-4). 221A-B-C: 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. 221D: Before the course begins, students choose a published empirical economics article and obtain the necessary data to replicate it. Then, students replicate and extend the economic analysis and write a paper describing their work. Satisfies econometrics requirement for the Ph.D. in Economics. Corequisites: Economics 220A-B-C-D.

223A Discrete Choice Econometrics (4). Specification, estimation, and testing of univariate and multivariate discrete choice models, in cross-sectional, panel, and time-series settings. Students use computer packages to apply models 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.

225A-B Monetary Economics I, II (4-4). 225A: 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. 225B: 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.

229 Special Topics in Quantitative Methods (2 to 4). Prerequisites vary. May be repeated for credit as topics vary.

239: FINANCIAL ECONOMICS

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.

242A 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.

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.

244A 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.

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

250–259: HUMAN RESOURCES

251A-B Labor Economics I, II (4-4). Analytic and empirical study of labor markets. Topics include labor supply and demand, human capital, educational sorting, life-time earnings profiles, discrimination, unemployment, unions; several econometric techniques including combined time-series and cross-sections, sample selection bias, and switching regressions are taught as needed. Prerequisites: Economics 100B and 203A.

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

260–269: MACROECONOMICS

261A-B International Trade I, II (4-4). Covers theoretical models, empirical methods, and policy issues in international trade. Following the conventional treatment of the Ricardian model, the Heckscher-Ohlin model, and the specific factors model; new trade models which incorporate scale economies and imperfect competition are discussed. Prerequisite: Economics 210A-B.

262A 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.

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-B-C Seminar in Public Choice I, II, III (4-4-4). 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-B-C.

271A Institutions in Historical Perspective (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 210A-B-C-D-E-F or consent of instructor.

272A-B-C Public Economics I, II, III (4-4-4). 272A: Covers welfare economics and the theory of optimal taxation. 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). Theoretical and empirical analysis of the economic functioning of urban areas. Urban economic development, location of firms and households, housing markets, urban public finance. Econometric estimation of hedonic price functions for housing. 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.

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.