background

Economics

Professors Hughes, Lewis, Maurer-Fazio, and Murray; Associate Professors Riera-Crichton (chair), and Schwinn; Visiting Associate Professor Perkins; Assistant Professors Dellachiesa, Shea, and Tefft; Visiting Instructor Lopes; Lecturer Marshall

Intelligent citizenship makes increasing demands on an individual's knowledge of economics. Policy makers in business, government, and the nonprofit sector must frequently evaluate complex economic issues. The goal of the economics curriculum is to educate students, both majors and nonmajors, about the ideas of economics and how they apply to today's world.

Introductory economics courses at Bates (courses numbered 100–199) emphasize a broad nontechnical understanding of economic institutions, policy, and analysis. Courses numbered between 200 and 249 provide nontechnical introductions to more specialized topics. Courses numbered between 250 and 299 cover intermediate economic theory and introduce students to the methods of empirical analysis. Three-hundred-level courses integrate practical economic issues with empirical and theoretical analyses, enabling students to develop sophisticated insight into both contemporary and historical economic problems. More information on the economics department is available on the website (bates.edu/economics/).

Major Requirements.

1) ECON 101, 103, 250, 255, 260, and 270. At least three of these four 200-level courses must be taken at Bates. The following statistics courses may be substituted for ECON 250 (Statistics):
BIO 244. Biostatistics.
MATH 215. Statistics.
PSYC 218. Statistics.

2) MATH 105 or 106 or the equivalent. MATH 105 is a prerequisite for ECON 255, 260, and 270.

3) Three 300-level electives in economics. At least two of these courses must be taken at Bates.

4) A fourth economics elective, which may be numbered 220–249 or 300–399. The following courses may substitute for a 200-level elective:

ANTH 339. Production and Reproduction.
PLTC 222. International Political Economy.
SOC 260. Economic Sociology.

5) Senior research capstone. Majors either undertake a one-semester thesis in the fall semester (ECON 457) or enroll in a research-intensive capstone seminar in the winter semester. This capstone course will be announced prior to winter 2015 registration. Generally, only students invited by the department to undertake an honors thesis enroll in the winter thesis (ECON 458).

Students are not permitted to declare the economics major during their senior year.

Sutdents majoring in economics are not permitted to use Applying Mathematical Methods (C006) to satisfy General Education requirements.

Students planning to study abroad should consult the off-campus study section of the economics department website. Most basic questions concerning departmental study-abroad requirements are answered there. Students should then consult with the department chair concerning the acceptability of particular courses for the major.

Because of the numerous, vital, and constantly developing interconnections between economics and other social sciences, economics majors are urged to take as many courses as possible in related disciplines such as anthropology, history, politics, psychology, and sociology.

Pass/Fail Grading Option. Pass/fail grading may not be elected for courses applied toward the major except for ECON 101 and 103.

Non-Bates Credit. Students receiving scores of four or five on the Economics AP exam receive credit for ECON 101 or 103. Students receiving a score of four or five on the Statistics AP exam receive credit for ECON 250. A-Level credit: Students receiving a grade of A or B on the A-Level Economics examinations may receive credit for ECON 101 and 103. No credit is given for the O-Level examinations. International Baccalaureate credit: Students receiving a grade of six or seven in the IB HL program may receive credit for ECON 101 and 103. No credit is given for the IB SL program.

Students who have failed a core economics course (ECON 101, 103, 250, 255, 260, or 270) at Bates may not receive major credit for an equivalent course taken at another institution.

Courses
ECON 101. Principles of Microeconomics: Prices and Markets.A study of competition and monopoly, antitrust policy and public-utility regulation, determination of wages and other sources of income, income distribution, and pollution and public policy. Enrollment limited to 35. Normally offered every semester. J. Hughes, L. Lewis, M. Maurer-Fazio, Staff.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 103. Principles of Macroeconomics: Income and Employment.A survey of major economic issues in the United States, such as economic growth, employment, and inflation. Students discuss the causes and consequences of fluctuations in income, employment, and inflation, and analyze fiscal and monetary policies designed to correct them. ECON 101 is helpful preparation, but not required. Enrollment limited to 35. Normally offered every semester. A. Dellachiesa, D. Riera-Crichton, G. Perkins, Staff.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 221. The World Economy.Trends and patterns in international trade and finance are discussed in relation to topics such as trade and growth, tariffs and trade restrictions, economic integration, and international economic cooperation and policy. Not open to students who have received credit for ECON 334. Prerequisite(s): ECON 101 and 103. Enrollment limited to 25. [W2] D. Riera-Crichton.
ConcentrationsInterdisciplinary Programs

This course is referenced by the following General Education Concentrations

This course counts toward the following Interdisciplinary Program(s)

ECON 222. Environmental Economics.The preservation of environmental quality and the struggle of people to improve their economic circumstances are often in conflict. This course explores the economic basis of environmental problems and examines alternative policies aimed at reducing environmental degradation. Among the topics are the deficiencies in the market system and existing property-rights system that contribute to environmental problems, cases where public intervention offers the potential for improvement, cases amenable to market-based approaches, and the public-policy tools available to promote environmental goals. Prerequisite(s) or corequisite(s): ECON 101. Open to first-year students. Enrollment limited to 25. Normally offered every year. L. Lewis.
ConcentrationsInterdisciplinary Programs

This course counts toward the following Interdisciplinary Program(s)

ECON 223. Law and Economics.This course introduces the use of economic methods to examine laws and legal institutions. The fundamental concepts of economics—scarcity, maximization, and marginal analysis—are used to predict the effect of legal rules on behavior, and to evaluate how well a particular rule achieves its intended end. At another level, civil law may be viewed as another system of resource allocation and wealth distribution, as the legal system is often used to craft a remedy when markets fail in their allocative role. Topics may include property law, contract law, accident law, family law, criminal law, and copyright and trademark law. Prerequisite(s): ECON 101. Not open to students who have received credit for ECON s35. Enrollment limited to 20. J. Hughes.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 228. Antitrust and Regulation.This course analyzes economic-policy issues of government intervention in the private sector through antitrust and regulatory policies. Specific topics examined include theories of monopoly and competition, the evolution of United States antitrust policy, key antitrust issues and cases, regulation of natural monopoly and oligopoly, capture theory, and comparative antitrust and regulatory policies. Prerequisite(s): ECON 101. Open to first-year students. C. Schwinn.
Concentrations

This course is referenced by the following General Education Concentrations

AS/EC 231. The Economic Development of Japan.This course surveys the development of Japan's economy. A brief historical introduction focuses on the preconditions for economic modernization and the role of the government in Japan's late nineteenth- and early twentieth-century experience. The course then concentrates on an overview of Japan's post–World War II experience of recovery, explosive growth, slowdown, and attempted reform. Students consider whether the Japanese economy operates according to principles, objectives, and structures that are substantially different from those of the West. Japan's economic impact on other East Asian countries and relatedness with the world economy are also explored. Prerequisite(s): ECON 101 or 103. Open to first-year students. Enrollment limited to 30. [W2] M. Maurer-Fazio.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 237. Introduction to Behavioral Economics.An introduction to the frontier region between economics and psychology as explored by economists. The course examines intertemporal choices, choices made under uncertainty, choices shaped by altruism, financial choices, and choices to punish. The course also considers applications of behavioral economics to public policy. Prerequisite(s): Economics 101 and one of the following: BIO 244, ECON 250, MATH 315, or PSYC 218. Enrollment limited to 22. M. Murray.
Concentrations

This course is referenced by the following General Education Concentrations

EC/WS 239. Gender Issues in Economics.This course uses economic theory and analysis to understand the changing roles of women in the economy and explain why we observe different outcomes for men and women. The first half of the course investigates gender issues within the household by focusing on topics such as household division of labor, marriage, divorce, fertility, and differential investment in children. The second half of the course explores gender differences in the labor market. Specifically, students examine variations in the supply of female labor, occupational differentiation by gender, and gender gap in earnings. Students consider these issues in the context of the United States as well as developing countries. The goals of the course are to a) demonstrate how economic tools can be applied to a diverse range of topics, b) practice summarizing and critiquing published research, and c) hone students' communication skills. Prerequisite(s): ECON 101. Enrollment limited to 30. Staff.
Concentrations

This course is referenced by the following General Education Concentrations

AS/EC 241. China's Economic Reforms.China's economy, now among the world's largest, has grown more rapidly than any other nation's over the last three decades. In this course, students explore the dynamism of China's recent economic transformation and the challenges it faces in the context of the enormous structural changes China has experienced in the twentieth and twenty-first centuries. They address fundamental questions about the transition from socialism, the nature of market systems, and how institutions and institutional change affect economic development. Prerequisite(s): ECON 101 or 103. Enrollment limited to 25. [W2] M. Maurer-Fazio.
Concentrations

This course is referenced by the following General Education Concentrations

AS/EC 242. Work and Workers in China.In this course students investigate how China's economic reforms are affecting the working lives and well-being of its immense work force. Over the last three decades, China has experienced rapid structural change as tens of millions of Chinese have moved out of the agriculture sector and into the industrial and service sectors. The concomitant migration of workers from the countryside to urban areas is the largest migration in human history. Students focus on the distributional implications of China's reform experience. They consider which institutional legacies are shaping emerging labor markets, how far China has moved toward a market-determined labor system, and which segments of China's enormous population have benefited and which have been harmed by the reforms. Prerequisite(s): ECON 101 or 103. Enrollment limited to 25. [W2] M. Maurer-Fazio.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 250. Statistics.Topics include probability theory, sampling theory, estimation, hypothesis testing, and linear regression. Prospective economics majors should take this course in or before the fall semester of the sophomore year. Prerequisite(s): ECON 101 or 103. Open to first-year students. Enrollment limited to 36. [Q] Normally offered every semester. J. Hughes, M. Murray, N. Tefft.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 255. Econometrics.Topics include multiple regression using time series and cross-sectional data, simultaneous equation models, and an introduction to forecasting. Prerequisite(s): ECON 250 and MATH 105. Enrollment limited to 40. [Q] Normally offered every semester. M. Murray, C. Schwinn.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 260. Intermediate Microeconomic Theory.Compares models of perfect competition and market failure, with emphasis on the consequences for efficiency and equity. Topics include consumer choice, firm behavior, markets for goods and inputs, choice over time, monopoly, oligopoly, monopolistic competition, externalities, and public goods. Prerequisite(s): ECON 101 and MATH 105. Enrollment limited to 45. [Q] Normally offered every semester. J. Hughes, N. Tefft, Staff.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 270. Intermediate Macroeconomic Theory.This study of national income determination includes movements involving consumption, saving, investment, demand for money, supply of money, interest rates, price levels, wage rates, and unemployment. Monetary policy, fiscal policy, inflation, and growth models are considered. Prerequisite(s): ECON 101 and 103 and MATH 105. Enrollment limited to 40. [Q] Normally offered every semester. D. Riera-Crichton, P. Shea.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 305. International Financial Stability.Global financial stability is an essential requirement to ensure sustainable world economic growth and the successful development of emerging markets. This course provides an in-depth understanding of the mechanisms and institutions that rule our international financial system. First, students take a historic look at the evolution of the international monetary system during the last century. Then they study recent failures of the system leading to global financial crises. Special attention is paid to currency, debt, and balance of payments crises. Finally, they review current policy challenges faced by developed and developing nations. Prerequisite(s): ECON 255 and 270. Recommended background: ECON 221. Enrollment limited to 20. Normally offered every year. D. Riera-Crichton.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 309. Economics of Less-Developed Countries.The course examines the causes of the poverty of nations, various potential paths to economic growth, and the effects of policies of the rich countries on less-developed countries. Included are such topics as industrialization, the "green revolution," population growth, environmental degradation, trade policies, debt, multinational corporations, and foreign aid. The development of individual countries is examined in light of the great diversity of experiences among developing economies. Prerequisite(s): ECON 255, 260, and 270. Enrollment limited to 20. M. Maurer-Fazio, M. Murray.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 310. Economics of Not-for-Profit Firms.This course studies the not-for-profit (NFP) firm as an institutional form that society has used in response to market failures, such as those caused by the presence of jointly consumed goods, asymmetric information, or principal-agent problems. Examples are taken from industries where the NFP form is prevalent: health care, education, museums, performing arts, and public radio and television. Issues related to the financing of NFPs, including their capital structure and their reliance on donations as opposed to commercial revenues, are also explored. Prerequisite(s): ECON 255 and 260. Enrollment limited to 20. [W2] G. Perkins.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 311. Public Economics.An analysis of basic issues in the field of public finance. The course covers a wide range of topics, including the welfare implications of expenditure and taxation policies of governments, the economic rationale of governmental provision of goods and services, fiscal institutions in the United States, efficiency and distributive aspects of taxation, effects of taxation on household and firm behavior, intergovernmental fiscal relations, and the public debt. Prerequisite(s): ECON 255, 260, and 270. Enrollment limited to 20. M. Murray.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 313. The Great Recession.This seminar examines the events of the recent recession, as well as its causes and aftermath. Special attention is paid to the housing bubble that preceded the recession, how the crisis in the housing sector spread to the rest of the economy, and the response of monetary, fiscal, and regulatory policies. The seminar focuses both on refining students' theoretical and empirical skills, and on applying them to recent macroeconomic events. Prerequisite(s): ECON 255 and 270. Enrollment limited to 15. [W2] Normally offered every year. P. Shea.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 315. Energy Economics.In this course students develop and use tools of economic analysis to understand contemporary policy issues related to energy. This course focuses on the relationship among economics, science, technology, and energy in the public policy process. Students examine the political economy of global climate change to study this relationship. The goal is to establish a reasonable basis for understanding the science and politics of global climate change. Prerequisite(s): ECON 255, 260, and 270. Enrollment limited to 15. A. Dellachiesa.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 318. Advanced Macroeconomics.Theories and empirical studies of business cycles: fixed-investment behavior, inventory activity, and monetary fluctuations. The course examines recent work on inflation, expectations, economic growth theory, and techniques in current use for forecasting general economic activity. Prerequisite(s): ECON 255 and 270. Enrollment limited to 20. P. Shea.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 320. Advanced Econometrics.Econometric estimation techniques beyond least squares, including instrumental variables, maximum likelihood, the generalized method of moments, and both nonparametric and simulation methods are introduced. Models for panel data, stochastically trending variables, and limited dependent variables are also discussed. Students' choice of projects determines which topics are considered in detail. Prerequisite(s): ECON 255. Enrollment limited to 22. M. Murray.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 324. Corporate Finance.The cost of capital, dividend policy, security valuation, portfolio theory, capital budgeting, and the efficient-markets hypothesis are among the topics investigated. Emphasis is on the testing of hypotheses derived from economic theory. Prerequisite(s): ECON 255 and 260. Enrollment limited to 20. Normally offered every year. C. Schwinn.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 325. Prices, Property, and the Problem of the Commons.An analysis of water resources and fisheries economics. Topics include water allocation, scarcity and pricing, water rights, cost-benefit analysis, valuation, water markets, and problems related to common-property resources such as underground aquifers and fisheries. Economic incentives for pollution control including tradable pollution permit programs for water quality maintenance are also covered. Prerequisite(s): ECON 255 and 260. Enrollment limited to 25. [W2] Normally offered every year. L. Lewis.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 331. Labor Economics.A study of human resources and the labor market. Topics include racial and sexual discrimination, theories of unemployment and job search, income distribution and poverty, Becker's new household economics, unions and collective bargaining, and government intervention in the labor market. Prerequisite(s): ECON 255 and 260. Enrollment limited to 25. J. Hughes.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 333. International Trade.Classical and modern theories of international trade analyzed in light of current trends and patterns in the world economy. Attention is focused on the gains from trade, the impact of tariffs and other types of trade restrictions on national economic welfare, the trade problems of less-developed countries, and the theory of economic integration. Prerequisite(s): ECON 255 and 260. Enrollment limited to 20. Staff.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 335. Health Economics.The health care industry represents a rapidly growing proportion of government expenditures and the U.S. economy as a whole. This course offers theoretical and empirical analyses of health care markets and individual decisions with respect to health and health care. These issues require special consideration due to asymmetric information in insurance markets and the physician-patient relationship; uncertainty in health shocks and expenditures; and interactions between health care providers, insurers, employers, and public health insurance programs. The class considers these issues primarily in a microeconomic framework and explores econometric techniques commonly used in the study of health and health care. Prerequisite(s): ECON 255 and 260. Enrollment limited to 25. Normally offered every year. N. Tefft.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 337. The Economics of Intellectual Property.Intellectual property rights (IPR) are the means by which innovators may receive a reward for their inventions. In the twenty-first century, control of these rights is the basis for many of the worlds's most valuable companies (e.g., Apple, Google, Microsoft). Ironically, the rules governing the intellectual property of the twenty-first century were themselves devised hundreds of years earlier. Advances in information technology over the past fifty years have rendered many of these rules obsolete. In addition, the role of IPR in the creation and distribution of wealth within and among nations has given rise to profound questions of equity regarding access to the benefits of innovation by disadvantaged groups. This course examines the theory and practice of IPR around the world using case studies and empirical analysis. Prerequisite(s): ECON 255 and 260. Enrollment limited to 15. J. Hughes.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 339. Industrial Organization.Theories of the firm are used to explain the organization of economic activity across markets and within firms. The effects of pricing behavior, merger activity, advertising, and research and development on efficiency and social welfare are examined. Prerequisite(s): ECON 255 and 260. Enrollment limited to 20. C. Schwinn.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 341. Time Series Econometrics.This course examines the theory and application of time series econometrics. The course considers issues related to time series data including stationarity, lag structure, and endogeneity, as well as estimation techniques such as vector autoregressions, maximum likelihood, and Bayesian approaches. The course's applications primarily are related to the estimation of macroeconomic models and forecasting macroeconomic policy changes. Prerequisite(s): ECON 255 and 103 or 270. Enrollment limited to 20. [Q] Normally offered every year. D. Riera-Crichton, P. Shea.
Concentrations

This course is referenced by the following General Education Concentrations

EC/MA 342. Optimal Control Theory with Economic Applications.Optimal control theory unifies numerous economic problems related to the creation and use of physical capital. This course introduces optimal control theory as a tool for dynamic optimization and applies that theory to a variety of classic economic problems involving capital. Among the economic problems examined are optimal use of a renewable resource, optimal use of a nonrenewable resource, and optimal economic growth when growth begets pollution. The course includes formally proving Pontryagin's maximum principle, which characterizes dynamic optima, in the special case context of common economic problems. Prerequisite(s): MATH 205, 206, and one economics course. Enrollment limited to 20. M. Murray.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 360. Independent Study.Students, in consultation with a faculty advisor, individually design and plan a course of study or research not offered in the curriculum. Course work includes a reflective component, evaluation, and completion of an agreed-upon product. Sponsorship by a faculty member in the program/department, a course prospectus, and permission of the chair are required. Students may register for no more than one independent study per semester. Normally offered every semester. Staff.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 457. Senior Thesis.Prior to entrance into ECON 457, students must submit for approval a thesis proposal based on work done in a nonintroductory course. Students enroll in ECON 457 in the fall. Honors thesis writers enroll for both ECON 457 and ECON 458. Prerequisite(s): at least two 300-level economics courses. [W3] Normally offered every year. Staff.
Concentrations

This course is referenced by the following General Education Concentrations

ECON 458. Senior Thesis.A continuation of ECON 457 and designed for students completing an honors thesis. Students must submit for approval a thesis proposal based on work done in a nonintroductory course. Prerequisite(s): ECON 457 and at least two 300-level economics courses. Instructor permission is required. [W3] Normally offered every year. Staff.
Concentrations

This course is referenced by the following General Education Concentrations

Short Term Courses
ECON s22. Designing Economics Research.This course teaches students how to craft research questions. Students examine the literature and develop a literature review or research proposal. The course includes an examination of different fields of economics and how research is conducted on various topics in those fields. Students also consider how data can be manipulated to favor a particular arguments and how to ask questions of the data. The course is aimed at students who have not yet written a thesis. Prerequisite(s): ECON 250 or any 200-level economics course. Enrollment limited to 20. L. Lewis.
Concentrations

This course is referenced by the following General Education Concentrations

ECON s32. International Ecotourism: Picasso, Parks, and Picadillos.This course focuses on the economics of international ecotourism. Students consider both the international-trade aspects of international ecotourism as well as the environmental externalities arising from tourism in the context of environmental economics. Students explore the differences between the local versus the macro impact of tourism, and they address the differences and similarities among types of tourism such as recreational tourism, adventure tourism, ecotourism, cultural tourism, and culinary tourism. Several short field trips are required. Prerequisite(s): ECON 221 or 222. Enrollment limited to 20. L. Lewis, D. Riera-Crichton.
Concentrations

This course is referenced by the following General Education Concentrations

ECON s50. Independent Study.Students, in consultation with a faculty advisor, individually design and plan a course of study or research not offered in the curriculum. Course work includes a reflective component, evaluation, and completion of an agreed-upon product. Sponsorship by a faculty member in the program/department, a course prospectus, and permission of the chair are required. Students may register for no more than one independent study during a Short Term. Normally offered every year. Staff.
Concentrations

This course is referenced by the following General Education Concentrations