Chair, Professor David Findlay

Professors Jan Hogendorn, Henry Gemery, James Meehan, Thomas Tietenberg, Clifford Reid, Randy Nelson, and Findlay; Associate Professors Patrice Franko, Debra Barbezat, and Michael Donihue; Assistant Professor Kashif Mansori; Faculty Fellow Andreas Ortmann

In addition to dealing with the study of market behavior, consumers, inflation, and unemployment, economic tools find increasing use in other social sciences, with the skills of the economist central to studies of gender and race discrimination, poverty, energy, technology, international relations, government behavior, the environment, economic growth, crime, and other issues of public and private life. The Economics Department provides a wide selection of courses that analyze problems arising in these areas. The major provides an undergraduate an excellent background for employment and graduate work in numerous fields, including economics, business, law, government, and education.

Requirements for the Major in Economics
Economics 133, 134, 223*, 224*, 391**; Mathematics 121, 131, or 161 or equivalent; either Mathematics 231 or the two-course sequence 381, 382; one of the senior seminars (Economics 473 through 478); three additional courses (totaling at least nine credit hours) in economics, of which two must be numbered 300 or above (at least one of the 300-level courses must be taken at Colby). The comprehensive examination administered during the senior year must be passed. Administrative Science 311 may be used to satisfy the non-300-level elective requirement. Although potential majors are strongly encouraged to take Economics 133 and 134 in their first year, completion of the major is possible even if begun during the second year.

Requirements for the Major in Economics with a Concentration in Financial Markets
Economics 133, 134, 223*, 224*, 391**, 393; either 473, 475, or 478; and either 277 or 338; Administrative Science 221, 311 and 322; Mathematics 121, 131, or 161 or equivalent; either Mathematics 231 or the two-course sequence 381, 382. Two additional elective economics courses, at least one of which must be numbered 300 or above if Economics 277 is elected. The comprehensive examination administered during the senior year must be passed.

*Note: To continue in either major, students must receive a grade of C- or better in Economics 223 and 224. All economic theory courses (223, 224) must be taken at Colby. Any student who has tried and failed to satisfy an intermediate theory requirement at Colby (i.e., received a grade of D+ or below for the major or F for the minor) may elect to take the same course elsewhere by securing the approval of the department chair on the standard credit transfer approval form. For other students seeking to fulfill the intermediate theory requirement with a course taken elsewhere, approval for the standard credit transfer form can be secured only by petitioning the Economics Department and having the petition approved by majority vote of the Economics Department faculty.

**Note: Students may complete their analytical research paper in economics (Economics 391) in either their junior or senior year. Students who elect to complete it in the fall semester of their senior year should obtain approval from a faculty sponsor no later than the end of the second week of the fall semester. Students planning on completing Economics 391 in the spring must select and obtain approval from a faculty sponsor no later than the end of the third week of the fall semester. The necessary approval form may be obtained from the departmental office—the signed and completed form must be returned to the departmental office by the appropriate deadline.

Students who wish to do graduate work in economics are urged to elect Economics 336, 393, and 477 and additional courses in mathematics, e.g., Mathematics 253, 311, 338, 372.

The point scale for retention of the major applies to all courses offered toward the major. No requirement for the major may be taken satisfactory/unsatisfactory.

Honors Program in Economics
Students majoring in economics may apply during the second semester of their junior year for admission to the honors program. Permission is required; guidelines are established by the department. Successful completion of the work of the honors project and of the major will enable the student to graduate "With Honors in Economics."

Requirements for the Major in Economics-Mathematics
Economics 133, 134, 223*, 224*, 336, 393; one additional elective economics course numbered 300 or above (excluding senior seminars); Mathematics 122 or 162, 253, 381, 382; two additional elective mathematics courses from Mathematics 274, 311, 332, 338, and 397B, or, with written approval from the economics-mathematics advisor, other mathematics courses numbered 300 or higher. Students must also demonstrate mathematical sophistication in Economics 391, or Economics 483, 484, or in an appropriate project in conjunction with Economics 491 or an economics senior seminar. The comprehensive examination administered during the senior year must be passed.
The point scale for retention of the economics-mathematics major applies to all courses offered toward the major. No requirement for the major may be taken satisfactory/unsatisfactory.

Honors Program in Economics-Mathematics
Students majoring in economics-mathematics may apply during the second semester of their junior year for admission to the honors program. Permission is required; guidelines are established by the department. Successful completion of the work of the honors project and of the major will enable the student to graduate "With Honors in Economics-Mathematics."

Requirements for the Minor in Economics
Economics 133, 134, 223, 224, and two elective courses in economics totaling at least six credit hours, of which at least three credit hours must be numbered 300 or above. Independent studies cannot be used to fulfill the 300-level course requirement. No requirement for the minor may be taken satisfactory/unsatisfactory.

COURSE OFFERINGS

133fs    Principles of Microeconomics    Principles of microeconomics and their applications to price determination, industrial structure, environmental protection, poverty and discrimination, international trade, and public policy. Four credit hours.  S.    FACULTY

134fs    Principles of Macroeconomics    Principles of macroeconomics and their applications: national product and income accounting, monetary and fiscal policy, inflation, international finance, unemployment, and growth. Four credit hours.  S.    BARBEZAT, DONIHUE, FINDLAY

134Jj    Principles of Macroeconomics    Principles of macroeconomics and their applications: national product and income accounting, monetary and fiscal policy, inflation, international finance, unemployment, and growth. Prerequisite: Economics 133. Three credit hours.  S.    HOGENDORN

214f    Economic Policy and Performance in Contemporary Latin America    Analysis of macroeconomic stabilization policies and microeconomic issues such as regional trade, agriculture, the transnational narcotics industry, the environment, and labor markets in contemporary Latin America. Prerequisite: Economics 133 and 134. Four credit hours.  D.    FRANKO

218j    Seminar on the Economics of Technical Change    An introduction to the nature of technological change and innovation as it bears on economic structure and growth. Examines technical change in both its theoretical and historical context. Prerequisite: Economics 133, 134. Two credit hours.    GEMERY

222j    Health Economics    The application of economic analysis to health care. Distinctive features of health care markets are analyzed using economic models of uncertainty and incomplete information. Topics include the supply and distribution of medical personnel, the financing of health care, sources of rising costs, and alternative organizational forms for the delivery of medical care, including health care systems in other countries. Discussion of the economic basis for health care reform and governmental intervention in the health care sector. Prerequisite: Economics 133. Two credit hours.    BARBEZAT

223fs    Microeconomic Theory    The theory of the pricing, distribution, and allocation of resources in a market economy. Emphasis placed on the various meanings of economic efficiency. Prerequisite: Economics 133, 134. Four credit hours.    MEEHAN, REID

224fs    Macroeconomic Theory    Analysis of the theories of national income determination, the role of financial markets, the factors affecting employment, and the price level, international trade, exchange rates, and economic growth. Emphasis placed on the choice of fiscal and monetary policies and current issues in the conduct of stabilization policy. Prerequisite: Economics 223. Four credit hours.    DONIHUE, FINDLAY

231f    Environmental and Natural Resource Economics    An introductory survey course using economic analysis to explain the underlying behavioral causes of environmental and natural resource problems and to evaluate the policy responses to them. Topics include air and water pollution, toxic substances, the allocation of renewable and exhaustible resources, and sustainable development. Prerequisite: Economics 133. Three or four credit hours.    TIETENBERG

[239]    Seminar in Economic History: 20th-Century Western Europe    European growth in this century has been marked by two world wars, by depression, by major participation in international trade and finance, by decolonization, and by moves toward integration. An examination, beginning with World War I and its economic repercussions, of the economic experience of the Western European countries through the present European community. Prerequisite: Economics 133, 134. Three or four credit hours.    

[254]    The Economics of Women, Men, and Work    An examination of the past, present, and future economic status of women. Topics include the implications of changing economic and social roles of women for the division of labor in the family; the allocation of time of husband and wife between the household and the labor market; the impact of rising female labor force participation on marriage, childbearing, and divorce; and economic explanations of gender differences in earnings and occupation, including the role of labor market discrimination in observed gender differences in market outcomes. Prerequisite: Economics 133. Four credit hours.  D.    

274s    American Economic History    The framework of economic analysis applied to American historical patterns and trends. Aspects of industrialization, capital accumulation, technological change, trade and migration, and effects of entrepreneurial and governmental decisions. Prerequisite: Economics 133, 134. Three or four credit hours.  H.    GEMERY

277s    International Finance    An analysis of international monetary relations. Topics include foreign exchange markets, the history of foreign exchange regimes, capital flows, the balance of payments, adjustment to balance of payments disequilibrium, national income determination in an open economy, international monetary organizations, monetary reform, and macroeconomic policy coordination. Prerequisite: Economics 133, 134. Four credit hours.    FRANKO

278s    International Trade    An analysis of international trade. Topics include theories of international trade, the gains from trade, the impact upon factor incomes, commercial policy, international trade organizations and customs unions. Prerequisite: Economics 133, 134. Three or four credit hours.    HOGENDORN

293f    Economic Development of the Third World    The less-developed countries and their prospects for economic betterment. Analysis of the techniques involved and the problems to be encountered in the growth process. Prerequisite: Economics 133, 134. Three or four credit hours.    HOGENDORN

[297]    Presidential Economics    An analysis of key fiscal and monetary policies from the Hoover to the Clinton administrations. Topics include macroeconomic policies of the Great Depression, the gold standard, wage and price controls, the Kennedy tax cuts and supply-side economics. The effects of economic events on political outcomes (e.g. Presidential elections) and on the effects of political factors on economic policies (e.g. the political business cycle). Prerequisite: Economics 134. Two credit hours.    

312f    Topics in Law and Economics    A seminar examining the common law and the legal system from the point of view of economic analysis. The focus is on the effect of the legal system on allocation of resources, both as a substitute for and a complement to the market system. Specific topics include the definition and allocation of property rights, the assignment of liability for accidents and defective products, and the role of damage remedies for breach of contract. Prerequisite: Economics 223. Four credit hours.    TIETENBERG

[331]    Industrial Organization and Antitrust Economics    An examination of the structure, conduct, and performance of American industries to determine if the market process efficiently allocates resources to meet consumer demand. An economic analysis of the antitrust laws and an evaluation of their performances with reference to specific industries and cases. Prerequisite: Economics 223. Three or four credit hours.    

[332]    Regulated Industries    An examination of specific regulated markets and the rationale for regulation in each. The economic effects of regulation on price, cost of production, and quality of product or service will be explored. The success of regulation will be evaluated relative to the market outcome that would be expected in the absence of regulation. Prerequisite: Economics 223. Three or four credit hours.    

[336]    Mathematical Economics    A course in advanced economic theory designed to provide students with the fundamental mathematical tools necessary to prepare for graduate work in economics or business administration and for professional careers in the public or private sector. Topics include the development of portions of consumer and producer theory, the study of static and dynamic models, linear programming techniques, matrix algebra, and the consideration of general equilibrium analysis. Also listed as Mathematics 336. Prerequisite: Economics 223 and 224 and Mathematics 122 or 162. Three or four credit hours.    

338s    Money, Banking, and Monetary Policy    An examination of the monetary system of the United States. Topics include the determination and role of interest rates, the organization and operation of the banking firm, innovations and regulations of the banking industry, and the implementation and evaluation of monetary policies. Particular emphasis on the importance of financial markets in determining interest rates, influencing bank behavior, and affecting monetary policy. Prerequisite: Economics 224 and Mathematics 231 or 382. Four credit hours.    FINDLAY

351f    Public Finance    The economic role of government in the United States economy. The course has three parts: an analysis of market failures, an examination of government social insurance and welfare programs, and an investigation of the federal tax system. Prerequisite: Economics 223, 224. Three or four credit hours.    REID

355s    Labor Market Economics    Wage determination and allocation of human resources in union and nonunion labor markets. Theories of labor supply, labor demand, and human capital investment; related public policy issues such as minimum wage laws, income maintenance, and discrimination. The operation of labor markets in the macroeconomy, with particular emphasis on the role of implicit and explicit labor contracts in explaining aggregate wage stickiness, inflation, and unemployment. Prerequisite: Economics 223. Three or four credit hours.    BARBEZAT

[373]    Open-Economy Macroeconomics    An examination of price level and income determination in an open economy, the choice of exchange rate regime and its impacts on macroeconomic stability, constraints on the formulation and implementation of monetary and fiscal policy in an open economy, and the debate over the desirability of international coordination of macroeconomic policies. Emphasis on application of theoretical concepts to analyze historical and current events. Prerequisite: Economics 224 and Mathematics 121 or 161. Three or four credit hours.    

391fjs    Analytical Research Paper in Economics    An analytical, not descriptive, research paper in economics, to be coordinated with an elective economics course in which the student is concurrently, or previously has been, enrolled. Required of all economics majors. Prerequisite: Permission of the instructor. Two credit hours.    FACULTY

393fs    Econometrics    The use of statistical techniques to estimate and test economic models. Topics include multiple regression, multicollinearity, specification tests, serial correlation, heteroscedasticity, and the simultaneous-equations approach. Prerequisite: Economics 223, Mathematics 231 or 382. Four credit hours.    DONIHUE, REID

473f    Seminar: Economic Forecasting    An introduction to basic methods of time series analysis and the construction and presentation of economic forecasts. Topics covered include: exploratory data analysis; exponential smoothing; ARIMA modeling; econometric modeling; and the analysis of forecast errors. Prerequisite: Economics 393 or permission of the instructor, and senior standing as an economics major. Four credit hours.    DONIHUE

475f    Seminar: Economics of Organization    Economic organizations (public corporations, non-profit firms, partnerships, families, and social clubs, etc.) are pervasive in a market economy. Why do these organizations exist, and how are they organized? Focus on the economic explanations for the organization of firms. Prerequisite: Senior standing as an economics major. Four credit hours.    MEEHAN

476s    Seminar: Advanced Topics in Environmental Economics    Sustainable development is a concept that lies on the frontier of environmental economics. An examination of the theory behind sustainable development, the empirical work that attempts to reveal whether current development patterns are sustainable or not, the sources of unsustainability, and policies for forging the transition from an unsustainable to a sustainable path. Open to senior economics majors or minors. Prerequisite: Economics 231 and senior standing as an economics major. Four credit hours.    TIETENBERG

477f    Seminar: History of Economic Thought    An examination and appraisal of the development of economic theory, including major writing from the Mercantilist through Post-Keynesian periods. Extensive use of source material and current journal articles. Prerequisite: Senior standing as an economics major. Four credit hours.    GEMERY

[478]    Seminar: Economic Integration    An in-depth examination of policy questions regarding international economic integration, beginning with the theory that underlies efforts to reduce economic barriers between nations. Policy topics include the effect of international trade on income distributions, the potential expansion of NAFTA and the WTO, the motivations for and effects of European integration, and the role of human rights and environmental issues in discussions about integration. Prerequisite: Senior standing as an economics major. Four credit hours.    

483f, 484s    Independent Honors Project    A year-long honors project for senior majors in economics and economics-mathematics; the completed research to be presented in both written and seminar format. Prerequisite: Permission of the department. Three credit hours.    FACULTY

491f, 492s    Independent Study    Independent study devoted to a topic chosen by the student with the approval of the department. Prerequisite: Senior standing as an economics major. One to four credit hours.    FACULTY

499f    Teaching Assistant     Two credit hours.    MEEHAN