*Economics 970. Tutorial — Sophomore Year
Catalog Number: 7923 Enrollment: Limited to concentrators.
Christopher L. Foote, Robert H. Neugeboren and members of the Department
Half course (spring term). Hours to be arranged.
A series of small seminars focusing on applications of economic theory to real problems.
Note: One term required of all Economics concentrators.
Prerequisite: Both terms of Social Analysis 10, Statistics 100, Economics 1010a or 1011a, and current enrollment in Economics 1010b or 1011b.
*Economics 980r. Tutorial — Junior Year
Catalog Number: 3281
Robert H. Neugeboren and members of the Department
Half course (fall term). Hours to be arranged.
A thorough review of intermediate microeconomics and macroeconomics.
Note: Required of and limited to concentrators who received below a B-/C+ average in the Economics 1010/1011 sequence.
*Economics 985b. Research in Industrial Organization and Regulation
Catalog Number: 8180
Catherine D. Wolfram
Full course. Th., 4–6.
Research seminar examining the major issues and approaches in the economics of industrial organization and regulation. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.
*Economics 985c. Research in Labor Economics
Catalog Number: 5409
David Sang-Yoon Lee
Full course. Tu., 2–4.
Senior thesis research seminar in labor economics and related topics. Emphasis on choice of research topics, methodology, and data sources. Written and oral presentations of work-in-progress leading toward completion of a senior honors thesis are required.
*Economics 985d. Research in Economic Development
Catalog Number: 4989
Michael P. Murray (Bates College)
Full course. Th., 2–4. EXAM GROUP: 16, 17
Workshop for seniors writing theses in the areas of economic history and economic development. Emphasis on choice of research topics, primary sources, data sources, and research methods. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.
*Economics 985e. Research Seminar on Macroeconomics
Catalog Number: 3740
Francesco Caselli (University of Chicago)
Full course. Tu., 2–4.
Introduces students to major research issues in the field of money, finance, business cycles, and inflation. Initial meetings focus on potential research topics, data sources, and research methods. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.
[*Economics 985f. Research in International Trade and Finance]
Catalog Number: 7157
Full course. M., 2–4.
Workshop for seniors writing theses in international trade and finance. Emphasis on choice of research topics, methodology, and international economic theory. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honors thesis are required.
Note: Expected to be given in 2000–01.
Economics 985h. Research in Financial Markets
Catalog Number: 0350
Randall Morck (University of Alberta)
Full course. Th., 2–4.
Workshop for seniors writing theses in finance. Emphasis on choice of research topics, methodology, and data sources. Written and oral presentations of work in progress leading toward completion of a major research paper or senior honor thesis are required. Topics include asset pricing and corporate finance.
[Economics 985j. Research in Urban and Regional Economics, Housing, and Transportation]
Catalog Number: 2177
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Full course. Th., 1–3.
Workshop for seniors writing theses in urban and regional economics, housing, and transportation. Emphasis on choice of research topics and methodology. Written and oral presentations required of work in progress leading to completion of a major research paper or senior honors thesis.
Note: Expected to be given in 2000–01.
Economics 985k. Research in Public Finance
Catalog Number: 0871
Emmanuel Saez
Full course. Tu., 4–6.
Research seminar for seniors writing theses in public finance. Written and oral presentations of work-in-progress required. Topics have included taxation, health economies, environmental and resource economics, and education.
*Economics 990. Tutorial — Senior Year
Catalog Number: 7342
Christopher L. Foote and members of the Department
Full course. Workshop meetings to be arranged.
Note: Senior concentrators who are candidates for honors must write a senior thesis. They are required to present the thesis project to either the senior thesis workshop or a research seminar during the fall term. A student should consult a thesis adviser from among Department members and then inform the Tutorial Office of the topic and adviser. Signature of the Head Tutor required. Students must write a 25-page paper during the fall term and make two oral presentations on their thesis work. Students currently enrolled in Economics 985 may not enroll in Economics 990.
Economics 1010b. Macroeconomic Theory
Catalog Number: 2924
Christopher L. Foote
Half course (spring term). M., W., F., at 10. EXAM GROUP: 3
Theory of determination of national income, employment, prices, and interest rates; related issues of economic growth, fluctuations, and inflation; monetary and fiscal policy.
Note: Economics 1010b fulfills the intermediate macroeconomic theory requirement for economics concentrators. Students may take either Economics 1010b or Economics 1011b for credit.
Prerequisite: Social Analysis 10. While no specific mathematics course is required, knowledge of calculus at the level of Mathematics 1a is assumed.
Economics 1011a. Microeconomic Theory
Catalog Number: 7230
Michael A. Schwarz
Half course (fall term). Tu., Th., 11:30–1. EXAM GROUP: 13, 14
Economics 1011a is similar to Economics 1010a, but moves at a faster pace and with more use of mathematics. Topics include the theory of the consumer, decisions involving time and risk, the theory of the firm, perfect and imperfect competition, general equilibrium, welfare economics, game theory, and the economics of information. Special applied topics are covered if time permits; the topics this year will be bargaining and auctions, basic asset-pricing theory, and an introduction to law and economics.
Note: Economics 1011a fulfills the intermediate microeconomic theory requirement for economics concentrators. Students may take either Economics 1010a or Economics 1011a for credit.
Prerequisite: Social Analysis 10 and Mathematics 20 or 21a, or permission of the instructor.
Economics 1011b. Macroeconomic Theory
Catalog Number: 6993
Francesco Caselli (University of Chicago)
Half course (spring term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
The same topics as in 1010b, but with a more mathematical approach.
Note: Economics 1011b fulfills the intermediate macroeconomic theory requirement for economics concentrators. Students may take either Economics 1010b or Economics 1011b for credit.
Prerequisite: Social Analysis 10. While no specific mathematics course is required, Mathematics 20 or 21 is recommended.
[Economics 1030. Delay of Gratification]
Catalog Number: 4709
David I. Laibson
Half course (spring term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
An introduction to economic analysis of intertemporal choice. Analyzes decision problems in which consumers choose between current consumption and delayed consumption (e.g., consuming less today to accumulate resources for retirement, or working hard in school now to achieve a higher standard of living in the future). Surveys normative theories of intertemporal choice, and examines empirical evidence for and against these models. Applications may include the “low” U.S. savings rate, the “high” Japanese savings rate, nondiscretionary savings (e.g., social security), savings behavior in developing countries, intergenerational altruism, investment in human capital, habit formation, regret, impulsiveness, addiction, and procrastination.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 1010a and knowledge of multivariate calculus.
Economics 1050. Strategy and Conflict
Catalog Number: 8506
Robert H. Neugeboren
Half course (spring term). M., W., at 2 with a section to be announced. EXAM GROUP: 7
An introduction to "the strategic way of thinking” and a primer on game theory with applications to economics and other social sciences. Topics covered include the prisoner’s dilemma and the arms race; dominance reasoning and the minimax theorem; mixed strategies and Nash equilibrium; bargaining and collective action; threats, promises and negotiated games; the evolution of cooperation. No special mathematical preparation required.
Prerequisite: Social Analysis 10
[Economics 1052. Introduction to Game Theory]
Catalog Number: 2634
Drew Fudenberg
Half course (spring term). M., W., 2:30–4. EXAM GROUP: 7, 8
An introduction to game theory and its applications to economics at a high level of rigor. Topics include extensive form and strategic form games, Nash equilibrium and Nash’s existence theorem, subgame-perfect equilibrium, Bayesian equilibrium, and applications to repeated games, auctions, and bargaining.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 1011a and Mathematics 21b or equivalent.
[Economics 1075. The Formation of Economic Analysis]
Catalog Number: 7148
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Half course (spring term). M., W., 1–2:30. EXAM GROUP: 6, 7
Explores the development of economic theory from the classical era to postwar general equilibrium theory. Classical value and distribution theory, Marxist economics, neoclassical utility theory, marginal productivity, and competing schools of welfare economics are considered. Particular attention is paid to recurring theoretical dilemmas and to the ability of contemporary theory to supersede earlier systems.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 1010a.
Economics 2010b. Economic Theory
Catalog Number: 8659
Drew Fudenberg, Laurent E. Calvet, and Alvin E. Roth
Half course (spring term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
General equilibrium, the core, externalities and public goods, moral hazard, social choice theory, signaling, mechanism design.
Prerequisite: Economics 2010a.
Economics 2010c. Economic Theory
Catalog Number: 2041
N. Gregory Mankiw and Robert J. Barro
Half course (fall term). M., W., 12:30–2. EXAM GROUP: 5, 6
A basic course in graduate macroeconomics, including models of business fluctuations, growth, and inflation, theories of consumption and investment, and analyses of monetary and fiscal policy.
Note: Enrollment is normally limited to students in the economics Ph.D. program, doctoral candidates in a few other designated programs, and well-qualified undergraduates.
Prerequisite: Economics 2030 or the equivalent; can be taken concurrently.
Economics 2010d. Economic Theory
Catalog Number: 4431
Alberto F. Alesina and Benjamin M. Friedman
Half course (spring term). M., W., 8:30–10. EXAM GROUP: 1, 2
Theory of economic policy; fiscal policy, monetary policy; macroeconomic theory for the open economy.
Prerequisite: Economics 2010c.
*Economics 2020a (formerly Economics 2020). Microeconomic Theory I
Catalog Number: 0339
Jerry R. Green and Nolan H. Miller (Kennedy School)
Half course (fall term). M., W., 8:30–10, plus one section to be arranged. EXAM GROUP: 2
The theory of microeconomic behavior. Consumption, behavior toward risk, production, markets, game theory. Applications to policy analysis, business decisions, industrial organization, finance, the legal system. Emphasizes the use of economic theory in analyzing and understanding practical problems. This is a comprehensive course in economic theory designed for doctoral students in all parts of the university.
Note: Offered jointly with the Kennedy School of Government as API-111, and Harvard Business School as 4401.
Prerequisite: Two years of calculus and one course in probability theory. Thorough background in microeconomic theory at the intermediate level. Undergraduates with the appropriate background are welcome.
*Economics 2020b. Microeconomic Theory II
Catalog Number: 4058
Jerry R. Green and Nolan H. Miller (Kennedy School)
Half course (spring term). M., W., 8:30–10, plus a one hour section to be arranged. EXAM GROUP: 1, 2
A continuation of Economics 2020a. Economics of information, bargaining and welfare economics, general equilibrium, incentive theory.
Note: Offered jointly with the Kennedy School of Government as API-112, and Harvard Business School as 4402.
Prerequisite: Economics 2010a or 2020a.
Economics 2030. Optimization Theory for Economists
Catalog Number: 4976
Martin L. Weitzman
Half course (fall term). Tu., Th., F., 1–2:30. EXAM GROUP: 15, 16
Covers all basic aspects of optimization theory useful to Ph.D.-level economics. Topics include: convex programming, duality theory, linear and non-linear programming, dynamic programming, optimal growth theory, calculus of variations, the maximum principle of optimal control theory. While each topic is treated rigorously, the emphasis is on economic applications. This course could be useful for a graduate student either: needing more exposure to mathematics for economists, or wishing to learn more about optimization theory for economists.
Prerequisite: Previous experience with multivariate calculus, basic analysis, and linear algebra.
Economics 2040. Experimental Economics
Catalog Number: 8485
Alvin E. Roth
Half course (fall term). F., 9–12. EXAM GROUP: 2, 3, 4
This course will be an introduction to experimental economics, its methods, and some of the major subject areas that have been addressed by laboratory experiments. An effort will be made to concentrate on a series of experiments, in order to see how experiments build on one another and allow researchers with different theoretical dispositions to narrow the range of potential disagreement.
Note: Offered jointly with the Business School as 4257. This course is open to 2nd year graduate students in economics and also to Harvard Business School students. Others welcome to attend with permission of instructor. Classes will meet at the Business School.
Economics 2050. General Equilibrium Theory
Catalog Number: 2279
Laurent E. Calvet
Half course (fall term). F., 2:30–5:30. EXAM GROUP: 7, 8, 9
Develops the foundations of general equilibrium with an emphasis on financial markets. Topics include regularity and generic structure of equilibria, incomplete markets, default, informational efficiency and dynamic asset pricing.
[Economics 2052. Game Theory and Its Applications]
Catalog Number: 3690
Eric S. Maskin
Half course (spring term). M., 4–6:30. EXAM GROUP: 9
Classical noncooperative game theory; incomplete information; dynamic and repeated games; economic applications.
Note: Expected to be given in 2000–01. Professor Eric Maskin will be teaching this course in the spring at MIT (14.126). Harvard students with the prerequisites are welcome to cross-register.
Prerequisite: Economics 1011a, Statistics 100 and Math 21a.
[Economics 2054. Social Choice and Welfare Economics]
Catalog Number: 1118
Half course (spring term). Tu., 2–4. EXAM GROUP: 16, 17
A basic course in social choice theory and its economic applications. An examination of "impossibility" results, collective rationality, problems of implementations, domain restrictions of relevance to economic modelling, and interpersonal comparability. Applications will cover a variety of models of resource allocation,and in particular a number of problems of fair allocation.
Note: Expected to be given in 2000–01.
Economics 2055. Negotiation and Dispute Resolution: Interdisciplinary Research Seminar
Catalog Number: 3700
Jerry R. Green, Robert H. Mnookin (Law School), James K. Sebenius (Kennedy School), and Michael D. Watkins (Kennedy School)
Full course. Fall: alternate F., 11:30–1:30; Spring: alternate F., 11:30–1:00. EXAM GROUP: Fall: 4, 5; Spring: 5, 6
This research seminar will be concerned with topics relating to bargaining, negotiation, and dispute resolution. Special emphasis on the effect of laws and the legal system. Perspective of psychology and economics used to study the barriers to negotiated resolution of conflict.
Prerequisite: Permission of the instructors.
[Economics 2056. Topics in Advanced Theory]
Catalog Number: 3634
Drew Fudenberg
Half course (fall term). Tu., 2–4. EXAM GROUP: 16, 17
The course will survey recent work on learning and evaluation in games.
Note: Expected to be given in 2000–01.
Economics 2060. Contract Theory
Catalog Number: 1404
Oliver S. Hart
Half course (fall term). M., W., 1:30–3. EXAM GROUP: 6, 7
Recent developments in contract theory. Includes hidden action and hidden information models, dynamic agency issues, incomplete contracts, and applications of contract theory to theories of the firm and corporate financial structure.
[Economics 2070a. Introduction to Political Economy]
Catalog Number: 6102
Stephen A. Marglin
Half course (fall term). M., 12–2. EXAM GROUP: 5, 6
Offers an institutionalist perspective on the economy and economics. Analyzes the historical processes by which land, labor, and capital became commodities, and the processes by which the picture of the modern Western economy as one based on absolute scarcity, unlimited wants, and calculating, maximizing homo economicus came to be drawn. Discusses institutional basis of capitalism, relationship of politics to economics, and the limits of economic analysis.
Note: Expected to be given in 2000–01.
[Economics 2074. The Development of Economic Theory]
Catalog Number: 4368
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Half course (spring term). F., 12–2. EXAM GROUP: 5, 6
Controversies in the development of neoclassical economics are examined and evaluated. Topics include: difficulties in marginal productivity and general equilibrium theories of factor pricing, the displacement of cardinal theories of preference by ordinal models, and the rejection of utilitarianism in favor of Paretian welfare economics. The decline of the classical school is also considered.
Note: Expected to be given in 2000–01.
Economics 2075hf. Political Economy: Seminar
Catalog Number: 7645
Stephen A. Marglin
Half course (spring term). Tu., 10–12. EXAM GROUP: 12, 13
Economics 2076. Keynes and the 20th Century
Catalog Number: 4351
Stephen A. Marglin
Half course (fall term). Tu., 9:30–11:30. EXAM GROUP: 11, 12, 13
Examines the impact of Keynes on economics and the economy, with special emphasis on alternative readings of the General Theory. Considers both the standard interpretation of Keynes as a theorist of the short run, which allowed the assimilation of Keynesian economics into the mainstream of American economics, and an alternative reading of Keynes as offering a vision of capitalism fundamentally at odds with the vision of neoclassical economics. Attention will be paid both to theory and to the historical context in which the theory developed.
Economics 1126. Quantitative Methods in Economics
Catalog Number: 4076
Gary Chamberlain
Half course (spring term). Tu., Th., 2:30–4. EXAM GROUP: 16, 17
Reviews the elements of probability that are central to the statistical methods developed. This leads to the conditional expectation function. The role of multiple regression in drawing inferences from a sample about this population concept is developed. Empirical articles are discussed to illustrate this methodology. A key question is the extent to which the conditional expectation function can be given a causal interpretation. Empirical attempts by economists to isolate exogenous variation are discussed. Related methodology includes the use of longitudinal data and instrumental variables to control for selection bias.
Note: This course is sufficient preparation for undergraduate economics special field in econometrics. Also, Economics 1123 may not be taken for credit if taken after Economics 1126, but credit will be given for both courses if Economics 1123 is taken first.
Prerequisite: Statistics 100 or preferably 110; Mathematics 20.
Economics 2110b. Quantitative Methods II
Catalog Number: 4838
Fumio Hayashi (University of Tokyo)
Half course (spring term). Tu., Th., 8:30–10. EXAM GROUP: 10, 11
An econometrics course that covers the linear model in detail. Topics include ordinary least squares (OLS), generalized method of moments (GMM), maximum likelihood estimation, time-series analysis, and qualitative choice. Application of econometric methods using GAUSS software.
Prerequisite: Economics 2110a or Statistics 111 or equivalent.
[Economics 2130. Data in Economics: Provenance, Problems, Promise]
Catalog Number: 0766
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Half course (fall term). Th., 2:30–4. EXAM GROUP: 16, 17
Will discuss the essential foundation of all economic analysis: the data. Surveys the principal sources of (primarily cross-sectional) data, their collection, and major problems associated with their use. Conceptual and theoretical issues in the definition of economic “variables,” their uncertain relationship to the available data, and some econometric methods to deal with problems, such as missing data, errors-in-variables, and quality change, will be presented. Some coverage given to major U.S. and world statistical agencies. Topics include productivity and technical change, national income accounting, labor and unemployment, wages, income distribution , capital and wealth, firms and financial data, health, and trade.
Note: Expected to be given in 2000–01.
Economics 2140a. Econometric Methods I
Catalog Number: 6109
Dale W. Jorgenson
Half course (fall term). Tu., Th., 2:30–4. EXAM GROUP: 16, 17
Regression analysis and its economic applications, introduction to generalized method of moments and method of maximum likelihood, analysis of stationary and nonstationary time series. Includes regular computer exercises using standard econometric packages.
Prerequisite: Economics 2110a or equivalent.
Economics 2140b. Econometric Methods II
Catalog Number: 7210
Gary Chamberlain
Half course (fall term). Tu., Th., 2:30–4. EXAM GROUP: 16, 17
Statistical decision theory with applications to portfolio choice, panel data topics, selection bias, demand and supply, qualitative choice, and quantile regression.
Prerequisite: Economics 2110a, and either Economics 2110b or Economics 2140a.
[Economics 2140c. Econometric Methods III: Issues in Applied Econometrics]
Catalog Number: 0125
Zvi Griliches
Half course (spring term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
Structural models for cross-sectional and panel data: specification analysis and model choice issues. Simultaneity, errors-in-variables, limited dependent variables, and count data models. Sample selectivity, missing data, outliers, and other empirical topics.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 2140a or equivalent.
Economics 2140d. Time Series Analysis
Catalog Number: 4414
James H. Stock (Kennedy School)
Half course (spring term). Tu., Th., 2:30–4. EXAM GROUP: 16, 17
An introduction to current research in time series econometrics. Theoretical and empirical topics include ARIMA, vector autoregressions, state-space models, Kalman filtering, nonlinear filtering, frequency domain analysis, and integrated and cointegrated time series models, functional central limit theorems, and tests for structural breaks. Other advanced topics and applications from macroeconomics and finance are also considered.
Economics 2140e. Advanced Applied Econometrics
Catalog Number: 7686
Ariel Pakes and Jack R. Porter
Half course (spring term). Tu., Th., 1–2:30. EXAM GROUP: 15, 16
An introduction to the theory and application of recently developed econometric techniques
used in advanced applied work. Simulation techniques as well as semiparametric and
nonparametric tools will be studied in a variety of empirical contexts.
Economics 2150. Topics in Applied Econometric Modeling
Catalog Number: 7151
David Sang-Yoon Lee
Half course (spring term). Tu., Th., 11:30–1. EXAM GROUP: 13, 14
Surveys various research designs that may be useful in empirical microeconomic research. Using examples from research in labor economics, covers issues in econometric modeling and identification, and causal interpretation in analyses of non-experimental data. Also provides a practical guide to implementing various econometric tools useful for applied research using cross-sectional and panel data.
Prerequisite: Economics 2110a, and either Economics 2110b or Economics 2140a.
Economics 2162. Econometrics: Research Seminar
Catalog Number: 2372
Jack R. Porter, Gary Chamberlain, Zvi Griliches (fall term), Dale W. Jorgenson, and James H. Stock (Kennedy School)
Full course. Th., 4:30–6. EXAM GROUP: 18
Current research topics in theory and applications of econometrics.
Economics 1315. Economic Development in East Asia
Catalog Number: 1920
Dwight H. Perkins
Half course (spring term). M., W., (F.), at 11. EXAM GROUP: 4
Covers the modern development and economic history of East and Southeast Asia. Topics covered include the role of government policy and the state, the transition from economies based on control planning to economies relying on market forces, the origins and nature of the Asian financial crisis, the role of natural resources or the lack thereof, differing approaches to income distribution and social welfare, and other issues connected with industrialization and agricultural development in the region.
Prerequisite: Social Analysis 10.
Economics 1357. Historical Perspectives on American Economic Ascendancy
Catalog Number: 7554 Enrollment: Limited to 70 students
Claudia Goldin
Half course (fall term). Tu., Th., 11:30–1. EXAM GROUP: 13, 14
The sources and origins of America’s economic ascendancy are explored beginning with the founding of the nation. Addresses whether the U.S. is currently losing economic leadership or whether other nations are converging on it. Explores how the U.S. achieved economic supremacy, emphasizing natural resources, legal institutions, migration of labor and capital from the Old World, education, and invention. Addresses domestic problems encountered along the way, such as inequality, regional divisions, slavery, and economic vicissitudes such as the Great Depression. Evaluates the solutions tried, such as larger and more powerful government, including the growth of social insurance programs, and labor unions.
Note: Economics concentrators may not take this course pass/fail.
Prerequisite: Social Analysis 10 or permission of the instructor.
Economics 1366. Natural Resource Economics in Developing Countries
Catalog Number: 4602
Theodore Panayotou (Kennedy School) and Jeffrey R. Vincent (Kennedy School)
Half course (spring term). Tu., Th., 2:30–4. EXAM GROUP: 16, 17
Economic theory of natural resources and the environment in a development context and policy analysis of resource and environmental issues in developing countries: market failures, collective choice and intertemporal allocation; optimal use and conservation of renewable and nonrenewable resources; market structure, technology, and resource scarcity; externalities and environment; economic growth and resource depletion; resource taxation and regulation; development strategy and resources policy. Applications to mineral extraction, deforestation, soil erosion, overfishing, and environmental degradation in developing countries, and to global environmental problems such as ozone depletion and greenhouse effect.
Note: Offered jointly with the Kennedy School of Government as PED-267.
Prerequisite: Social Analysis 10 or permission of instructor.
Economics 1370. Globalization, Crisis and Economic Policy in Developing Countries
Catalog Number: 5361
Jong-Wha Lee (Kennedy School)
Half course (fall term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
Covers selected topics in the recent development of developing countries. Emphasis is placed on the application of economic theories and empirical techniques to current policy issues in developing countries. The topics include openness and growth, globalization and international financial markets, foreign debt and financial crises, and stabilization and structural reform policies. Special attention is given to recent financial crises and economic reform of East Asian countries.
Prerequisite: Economics 1010b and introductory statistics or permission of instructor.
[Economics 1380 (formerly Economics 1382). The World Food Economy]
Catalog Number: 2988
Richard H. Goldman
Half course (spring term). M., W., 2–3:30. EXAM GROUP: 7, 8
Application of microeconomic and international trade analysis to issues in the world food economy. Part I focuses on interface between domestic and international dimensions of the food economy, stressing policies of large country agents, including WTO issues. Part II examines the analytical differences in conflicting projections about future food supply/demand balances and price levels, including demographic aspects, policy issues, and assessment of the Green Revolution and its prospects. Part III addresses food system issues in poor countries, such as role of hunger alleviation in economic growth, economic transformation, self-sufficiency vs. trade, pricing policies, macroeconomic structural adjustment, subsidy targeting, and food aid.
Note: Expected to be given in 2000–01. Offered jointly with the Kennedy School of Government as PED-517.
[Economics 1390. Growth, Poverty, and Economic Development]
Catalog Number: 1919
Half course (spring term). Tu., Th., 10:00–11:30. EXAM GROUP: 12, 13
Application of the tools of economic analysis to better understanding the process of economic development. Attention to be paid to the translation of economic concepts into testable propositions, the conduct of empirical analysis, and the formulation of strategies for government action. Topics covered include models of economic growth, poverty, and inequality; population growth; credit and labor markets; health; education; and household behavior.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 1010a or 1011a and Statistics 100. Economics 1123, 1126 or Statistics 139 recommended.
Economics 1399. Economic Development
Catalog Number: 4051
Joseph J. Stern
Half course (fall term). Tu., Th., 11:30–1. EXAM GROUP: 14
Provides an overview of the economics of development and of the major economic issues confronting developing countries. Explores various theories of economic growth, structural change, the distribution of income, and poverty as they apply to developing countries. Integrates analysis of these topics with an examination of the role of agriculture, industry, international trade, capital flows, the environment, and human resource development.
Prerequisite: Economics 1010a and 1010b.
[Economics 2300b. The Political Economy of Socialism and Transition, Part 2: Postsocialist Transition]
Catalog Number: 3374
Janos Kornai
Half course (fall term). Th., 2–4. EXAM GROUP: 16, 17
Main issues of postsocialist transition: political transformation, stabilization, transfer of property rights, changes in employment, income distribution and social security. Following lectures on the main issues the problems of a few selected countries are discussed. Part of the lectures are presented by invited Harvard and MIT faculty members.
Note: Expected to be given in 2000–01. Students of government, sociology, Russian and Chinese studies, and advanced undergraduates are welcome.
Prerequisite: Economics 2300a or similar course on comparative economics.
[Economics 2310. Economics and Politics of Policy Reform ]
Catalog Number: 1881
Aaron Tornell and Robert H. Bates
Half course (fall term). Tu., 7–9 p.m. EXAM GROUP: 18
This course will analyze models of policy reform in economics and political science literature. It will also contrast the predictions of these models with recent real world episodes.
Note: Expected to be given in 2000–01.
Economics 2320. Investment Appraisal and Risk Analysis
Catalog Number: 1489
Glenn P. Jenkins (Associate of the Harvard Institute for International Development) and G. P. Shukla (Kennedy School)
Half course (spring term). M., W., 4–5:30. EXAM GROUP: 9
Deals with the theory and techniques of financial, economic, social and stakeholder analysis of public and private sector investment projects. In addition to covering the theoretical aspects, students are required to derive the national economic parameters needed to make an economic evaluation of projects for different sectors. Techniques of risk, including Monte Carlo simulation analysis, are taught and applied to a range of cases. Case studies are used to link theory to practical application.
Note: Offered jointly with the Kennedy School of Government as PED-201.
Prerequisite: Introductory Microeconomics.
[Economics 2327. Capitalist Economic Development]
Catalog Number: 8092
Jeffrey D. Sachs
Half course (fall term). M., W., 10–11:30. EXAM GROUP: 3, 4
Examines the dynamics of global capitalist economic development from the start of the 19th century to the present. The first third of the course will analyze the spread of capitalist institutions from Western Europe to the rest of the world. The middle third will analyze the nature of growth and structural change of capitalist economies. The final third will examine market reforms in developing countries, including problems of macroeconomic stabilization, trade liberalization, privatization, and social policies.
Note: Expected to be given in 2000–01. This course counts toward the graduate history requirement.
Economics 2330. The Development of the American Economy
Catalog Number: 0123
Claudia Goldin
Half course (spring term). M., W., 10–11:30. EXAM GROUP: 3, 4
Covers selected topics in American economic history with an emphasis on the causes and consequences of economic growth in the 19th and 20th centuries. Also explores the historical roots of current economic issues, such as the productivity slowdown, technological change, inequality, social insurance programs, regulation, race, immigration, unions, education, and macroeconomic fluctuations.
[Economics 2332. Globalization and History]
Catalog Number: 2251
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Half course (spring term). Tu., Th., 11:30–1. EXAM GROUP: 13, 14
This course will explore the evolution of economic globalization over the past two centuries: from the beginning of the First Industrial Revolution in late 18th century Britain; through the gold standard outward regimes of the late 19th century: through the autarchic retreat inwards during 1914–1950; and concluding with the return to the outward regimes of the late 20th century. It will focus primarily, but not entirely, on the current OECD countries exploring the sources and impact of trade, capital flows and migration, including the contribution of open economy forces to global convergence.
Note: Expected to be given in 2000–01. Primarily for graduate students. Counts towards the departmental Economic History requirement.
Economics 2334. The Industrial Revolution
Catalog Number: 0124
Robert C. Allen (University of British Columbia)
Half course (fall term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
Selected topics in European economic history with an emphasis on the causes and consequences of modern economic growth in Britain, France, Germany, and Russia in the 18th, 19th, and early 20th centuries. Topics include agrarian change and impact, industrial technical change and impact, physical capital accumulation and finance, divisions of labor, human capital accumulation, international trade and finance, British late 19th-century retardation, World War I, and the Great Depression.
Note: Expected to be omitted in 2000–01. Advanced undergraduates welcome with permission of instructor.
*Economics 2339. Workshop in Economic History
Catalog Number: 8183
Claudia Goldin and Jeffrey G. Williamson
Full course. F., 2–4. EXAM GROUP: 7, 8
Intended for students writing dissertations related to economic history themes and/or methodology and for others with interests in economic history. Discusses research papers presented by scholars at Harvard and elsewhere.
[Economics 2375. Economic Development in Latin America ]
Catalog Number: 7988
Half course (fall term). M., W., 10–11:30. EXAM GROUP: 3, 4
This course analyzes Latin American economic development, its structural characteristics, recent reforms and current policy challenges. Its emphasis is in the application of macroeconomic analysis to real world problems. Thus, case studies are used from many countries in Latin America. An important aim of the course is that students develop a clear understanding of the different options facing policymakers, and of the consequences of these policies. Special attention is placed in the economic reforms of the last decade and currently under way. Throughout, the course presumes the student’s solid understanding of macroeconomics. Theory is used to the extent that it helps illuminate a particular issue under study.
Note: Expected to be given in 2000–01. Offered jointly with the Kennedy School of Government as PED-412. Open to qualifying undergraduates.
Economics 2390a. The Structural Transformation in Historical Perspective
Catalog Number: 4216
Dwight H. Perkins and Jeffrey G. Williamson
Half course (fall term). M., W., (F.), 2–3:30. EXAM GROUP: 7, 8
Reviews historical patterns of the structural transformation in Europe, Latin America, East Asia, and Africa. Focus is on the role of policy in development, the balance between agriculture and industry, the role of international trade and finance, and
the need for changing institutions as economies mature or as they make the transition from one economic system to another.
Note: Serves as the introduction at the graduate level to the field of Economic Development; also counts toward the departmental Economic History requirement.
Economics 2390b. Development Economics I: Microeconomic Issues
Catalog Number: 2990
Michael Kremer
Half course (fall term). M., W., 2:30–4. EXAM GROUP: 7, 8
Agricultural issues: Peasant behavior, land tenancy, interlinked markets. Credit and insurance market problems and institutions. Health, nutrition, and productivity. Gender bias. Education.
Economics 2390c. Developmental Economics II: Macroeconomic Issues
Catalog Number: 0388
Michael Kremer
Half course (spring term). Tu., Th., 2:30–4. EXAM GROUP: 16, 17
Dynamic models of development emphasizing migration, modernization, and technological change; static and dynamic models of political economy; rent-seeking in and outside the government; trade liberalization, macroeconomic stabilization, and reform; the dynamics of income distribution and institutional change.
Economics 2390d (formerly 2390dhf). Economic Growth and Development: Seminar
Catalog Number: 1926
Robert J. Barro, Michael Kremer, Dwight H. Perkins, and Jeffrey G. Williamson
Full course. Fall: M., 4:30–6; Spring: Tu., 2:30–4. EXAM GROUP: Fall: 9; Spring: 16, 17
Economics 2395. One Way or Many
Catalog Number: 0990
Jeffrey D. Sachs and Roberto Mangabeira Unger (Law School)
Half course (fall term). M., 2–4. EXAM GROUP: 7, 8
A recently influential and highly controversial set of ideas in political economy, sometimes labeled "neoliberalism" or "the Washington consensus," supports the thesis of institutional convergence as both a fact and a program. Opponents claim it accepts economic fatalism, remains complicit with extreme social inequality, and proves incompatible with a deepening of democracy. The international financial crisis has lent new urgency to the controversy. This course explores variations on these themes, comparing the struggle over alternatives for the poorer countries with discussion about alternatives for the richer ones.
Note: Offered jointly with the Law School as 44160-11. This course will be held at the Law School.
Economics 1415. Reform of the Public Sector
Catalog Number: 5233
John F. McHale
Half course (fall term). M., W., 2–3:30. EXAM GROUP: 7, 8
This course provides an introduction to the economics of policy reform with an emphasis on international comparisons. The course begins by developing some basic tools for the normative evaluation of public policy and for understanding the political economy of reform. These tools will then be applied to the study of reforms that are on the political agenda in many countries. The applications include: social security privatization, health care costs and access, voucher financing in education, work-based welfare reform, the European unemployment problem, and international environmental policy.
Prerequisite: Social Analysis 10
Economics 1420. American Economic Policy
Catalog Number: 8110
Martin Feldstein and John F. McHale
Half course (spring term). M., W., F., at 10. EXAM GROUP: 3
Analyzes major issues in American economic policy including national saving, taxation, Social Security, budget policy, monetary and fiscal policy, and exchange rate management. Current economic issues and policy options discussed in detail and in the context of current academic thinking.
Prerequisite: Economics 1010a or 1011a, or permission of instructor.
Economics 1423. Capital Markets
Catalog Number: 1917
John Y. Campbell
Half course (fall term). Tu., Th., 2:30–4. EXAM GROUP: 16, 17
An introduction to the economic analysis of investment decisions and financial markets. Concepts include time discounting, market efficiency, risk, and arbitrage; they are applied to fixed-income securities, equities, and derivative securities.
Prerequisite: Math 20 and Economics 1010a.
Economics 1425. Economic Models of Politics
Catalog Number: 7378
Marianno Tommasi (Kennedy School)
Half course (spring term). M., W., 2:30–4. EXAM GROUP: 7, 8
Investigates the functioning of the political system and how it generates public policy, using the tools of modern economic theory. Seeks to understand the structure of government and the behavior of agents in (and relation with) it. Special attention paid to Legislatures, the Bureaucracy, and intergovernmental relations. Applications include: voting, campaigning, political activism, strategy and compromise in the legislative process, economic reforms, judicial enforcement, federal public finances, monetary unions, processes of economic intergration, free-trade agreements, and the process of decentralizing the provision of public services in many developing countries (devolution). Uses a "U.S. centered" literature,but ponders its applicability to other (developing) countries.
Prerequisite: Economics 1010a or 1011a
Economics 1430. Macroeconomics and Politics
Catalog Number: 5549
Alberto F. Alesina
Half course (fall term). Tu., Th., 1–2:30. EXAM GROUP: 15, 16
Topics on the interplay between political processes and macroeconomics, including monetary policy and central-bank independence, political business cycle theory, macroeconomic determinants of voter behavior, the economic consequences of divided government, determinants of fiscal policy, hyperinflation and monetary stabilization, political economy of long-term growth, theory of economic and monetary union.
Note: Expected to be omitted in 2000–01.
Prerequisite: Social Analysis 10.
[Economics 1435. Economics of Health Care]
Catalog Number: 0951
David M. Cutler
Half course (fall term). Tu., Th., 10–11:30, with one one-hour section per week.. EXAM GROUP: 12, 13
Examines the economics of health care and health reform. Topics include economic determinants of health; the market for medical care; insurance markets; the interaction between health and other markets; and the role of the government in health care. Special emphasis on current issues in health reform.
Note: Expected to be given in 2000–01. Will no longer be offered through the Economics Department. Will be offered as Quantitative Reasoning 24 in the fall of 1999. For economics concentrators: this course will count towards the concentration requirement as an elective economics course.
Economics 1445. Corporate Finance
Catalog Number: 5889
Randall Morck (University of Alberta)
Half course (spring term). M., W., 1–2:30. EXAM GROUP: 6, 7
Introduction to corporate finance, including capital budgeting, capital structure of firms, dividend policy, managerial incentives, takeovers, and privatization.
Prerequisite: Economics 1010a or 1011a.
[Economics 1450. International Capital Markets and Corporate Finance]
Catalog Number: 4914
Rafael La Porta
Half course (spring term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
The course will explore how companies in different countries use internal finance, banks, and external capital markets. The course deals with four main issues in international finance: corporate governance, foreign exchange, international valuation, financial risk management. The first module of the course will emphasize the role of legal institutions in the development of local capital markets and will analyze how firms adapt to insufficiently developed local capital markets through conglomeration, pyramiding, government ownership and family businesses. This module will also cover the worldwide trend towards privatization. The second module of the course focuses on exchange rate and exchange rate determination. This material explores the connection between exchange rates, interest rates, national price levels, and inflation, and develops techniques for valuing foreign cash flows. In the third module we apply these techniques to problems of cross-border valuation. The final module of the course explores the measurement and management of exchange-rate risk exposures. Students will learn when and how a company should hedge its foreign exchange exposure.
Note: Expected to be given in 2000–01.
[Economics 1470. Privatization]
Catalog Number: 3865
Aaron Tornell
Half course (spring term). M., W., 1–2:30. EXAM GROUP: 6, 7
The course combines an examination of conceptual issues surrounding privatization with the use of case studies to analyze the actual process of privatization. Sometimes big private firms have strong stakeholders that lead these firms to behave inefficiently. Given this observation, we first ask when should state-owned enterprises be privatized, and when should they be transformed into private monopolies and regulated. Case studies will be used to analyze the concrete steps needed to privatize SOEs: restructuring, labor contracts, valuation, placement in the stock market, and auctions. The objective of the course is to familiarize students with the theoretical concepts of IO, game theory, and finance, and to provide them with accounting and financial “tools” commonly used in investment banking.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 1010a, or permission of the instructor.
[Economics 1475. Economic Growth]
Catalog Number: 0741
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Half course (fall term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
A theoretical and empirical examination of economic growth and the sources of income differences between countries. The focus is on both the historical experience of growth in countries that are currently rich and the current process of catch-up (or lack thereof) among poor countries in the world today. Among the issues examined are the role of population growth and demographic transition in the process of economic growth;accumulation of physical and human capital; technological change and its dissemination; the relation between economic growth, natural resource use, and environmental degradation; the effects on growth of income distribution, political factors, and culture; and the relationship between growth of income and happiness.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 1010b or 1011b.
Economics 1480. Moral Perspectives on Economic Growth
Catalog Number: 3441 Enrollment: Limited to 20
Benjamin M. Friedman
Half course (fall term). M., W., (F.), at 10. EXAM GROUP: 3
Considers economic growth, and policies that either promote or impede economic growth, from a social and moral perspective. The central question is whether rising living standards promote openness of opportunity, social mobility, tolerance of diversity, commitment to democracy, and other related characteristics of free societies. Approaches include economic, historical, and literary analyses.
Prerequisite: Economics 1010a (or 1011a) and 1010b (or 1011b).
Economics 2410c. Advanced Topics in Macroeconomics
Catalog Number: 4328
N. Gregory Mankiw
Half course (spring term). M., W., 11:30–1. EXAM GROUP: 4, 5
This course examines selected topics from recent research in macroeconomics, with an emphasis on empirical work. Topics include business cycle models, monetary and fiscal policy, and theories of consumer behavior.
Economics 2410e. Economic Growth
Catalog Number: 0681
Francesco Caselli (University of Chicago)
Half course (fall term). M., W., 10–11:30. EXAM GROUP: 3, 4
Theoretical and empirical topics in economic growth.
[Economics 2410h. Dynamic Programming and Consumption]
Catalog Number: 1851
David I. Laibson
Half course (spring term). Tu., Th., 3–4:30. EXAM GROUP: 17, 18
This course is divided into two independent halves. The first half of course is an introduction to dynamic programming, including numerical methods. Second half of the course surveys recent empirical and theoretical research in consumption. Topics in second half may include aggregation, insurance, liquidity constraints, consumption of durables, incomplete markets, precautionary savings, Kreps-Porteus preferences, habit formation, savings policy and savings incentives, and behavioral theories of consumption.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 2010c and 2010d.
Economics 2420. Monetary and Fiscal Policy: Seminar
Catalog Number: 5946
Alberto F. Alesina, Robert J. Barro, Christopher L. Foote, Benjamin M. Friedman, and N. Gregory Mankiw
Full course. M., 2–4. EXAM GROUP: 7, 8
[Economics 2422. Enterprise Design and Valuation]
Catalog Number: 1759
Carliss Y. Baldwin (Business School)
Half course (fall term). W., F., 11–12:30. EXAM GROUP: 4, 5
This course deals with the effects of an artifact’s design on the organizations, firms and subindustries involved in making the artifact. Illustrations will be drawn from the computer industry, however, the methodologies are general and can be extended to other settings. Topics covered (in approximate order) are: the microstructure of designs; modularity; the economic system surrounding artifacts and their designs; modular operators; task structures and contract structures; design options and design evolution; the option value of splitting and substitution; the option value of augmenting and exclusion; the option value of inverting and porting; modular clusters; the role of intellectual property rights and financial conduits in the formation of modular clusters; and the economics of hidden module competition. Readings will be drawn from works on engineering design, complex adaptive systems, organizational economics and finance.
Note: Expected to be given in 2000–01. Offered jointly with the Business School as 4253. The course is appropriate for Ph.D. students in economics and business economics in their second year; it is open to DBA and MBA students by permission of the instructor.
Economics 2423. Asset Pricing
Catalog Number: 2847
John Y. Campbell
Half course (fall term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
An introduction to financial economics emphasizing discrete-time models and empirical applications. Topics include econometric analysis of asset returns, static and intertemporal asset pricing models, present value relations, the term structure of interest rates, and advances in behavioral finance.
Prerequisite: Math 20 and Economics 1010a
[Economics 2424. Finance Theory in Continuous Time]
Catalog Number: 4860
Sanjiv Das (Business School)
Half course (spring term). M., 3–5. EXAM GROUP: 8, 9
Synthesis of finance theory from the perspective of continuous-time analysis covering individual financial behavior, capital markets, financial intermediation, and general equilibrium in an uncertain environment. Topics: introductory stochastic calculus and dynamic programming, lifetime consumption choice and portfolio selection theory, option and other derivative-security pricing, pricing of corporate liabilities, risk management and production theory for financial intermediaries, interest rate and fixed-income pricing, intertemporal and consumption-based capital asset pricing models.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 2010a or 2020a, elementary probability, multivariate calculus.
Economics 2425. Corporate Finance
Catalog Number: 1427
Andrei Shleifer
Half course (spring term). M., W., 10–11:30. EXAM GROUP: 3, 4
Theory and empirical evidence of capital structure, dividends, investment policy, managerial incentives, and takeovers. Topics to be emphasized include market efficiency, agency problems, and ownership.
Note: Offered jointly with the Business School as 4228 and with the Kennedy School of Government as API-142.
Prerequisite: Economics 2060.
Economics 2427. Topics in Empirical Corporate Finance
Catalog Number: 9055
Paul Gompers (Business School) and Joshua Lerner (Business School)
Half course (spring term). Th., 2:30–5:30. EXAM GROUP: 16, 17, 18
This course will examine empirical research in corporate finance. The class will be seminar format with a discussion of various research articles and working papers. Students will be required to write referee reports, three papers throughout the term, and complete a 25-page research paper. The course will cover empirical research methodology, financial institutions, financial market regulation, intellectual property and finance, product market/capital market interaction, and corporate governance. The course will be structured to minimize overlap with Economics 2425.
Note: Offered jointly with the Business School as 4814.
Economics 2428. Behavioral Finance
Catalog Number: 8633
Andrei Shleifer
Half course (spring term). M., 4–6. EXAM GROUP: 9
The course will deal with theoretical and empirical approaches to the study of financial markets using psychological or behavioral ideas. Topics to be discussed include: limited arbitrage, predictability of security returns, closed end funds, the equity premium, trading volume and others.
Note: Expected to be omitted in 2000–01.
Prerequisite: Economics 2423. May be taken concurrently.
Economics 2430. Dynamic Consumption and Portfolio Choice under Uncertainty
Catalog Number: 2235
George Chacko (Business School) Randy Cohen (Business School), and Luis Viceira (Business School)
Half course (spring term). Th., 3–6. EXAM GROUP: 17, 18
At each moment in time, individuals must choose between three potential uses of their (financial and nonfinancial) wealth: consumption, investing in riskless securities, or investing in various forms of risky assets, some of which could be nontraded. This course covers the basics of these consumption/savings and asset allocation problems. The course begins with one or two-period versions of these problems and quickly moves to the general multi-period problem in finite and infinite horizon settings. Advanced topics to be covered in a partial equilibrium setting include optimal consumption/savings with time-varying investment opportunity sets, investment decisions when the opportunity set includes "alternative" assets such as human capital and residential real estate, and optimal investment with incomplete information. Topics covered in a general equilibrium setting include the term structure of interest rates and the determination of risk premia. The course will deal with problems in both discrete and continuous time and will teach stochastic dynamic programming in both settings. In addition to theoretical concepts, the course looks at empirical tests of the theories of
consumption, savings, and investment, including examination of aggregate and micro-level data in the U.S. and internationally.
Note: Offered jointly with the Business School as 4244.
Prerequisite: Economics 2010a,b,c,d, and Economics 2140a or equivalent.
Economics 2450a. Public Economics and Fiscal Policy I
Catalog Number: 1339
David M. Cutler and Emmanuel Saez
Half course (fall term). Tu., Th., 11:30–1. EXAM GROUP: 13, 14
Surveys theoretical and empirical analyses of taxation and government expenditures. Special topics include taxes and corporate finance and international aspects of taxation.
Economics 2450b. Public Economics and Fiscal Policy II
Catalog Number: 6478
Martin Feldstein and Emmanuel Saez
Half course (spring term). M., W., F., 11:30–1. EXAM GROUP: 4, 5
Surveys theoretical and empirical analyses of taxation and government expenditures. Special topics include taxes and corporate finance, social insurance and fiscal policy.
[Economics 2470. Reform of the Welfare State]
Catalog Number: 8752
Janos Kornai and John F. McHale
Half course (fall term). W., 2–4. EXAM GROUP: 7, 8
Reform of the welfare state is on the agenda in many countries. This course will use a comparative and interdisciplinary approach to study reform options, with an emphasis on policy conclusions. Topics include: causes and effects of welfare state growth; reform of state-provided pensions, health care, education, unemployment insurance and assistance, poverty relief, etc.; the political economy and ethical implications of reform; and the special problems of developing and post-communist economies.
Note: Expected to be given in 2000–01. Presentations will be given by guest speakers and students. Students of political science, public administration, sociology, public health, education, law, philosophy, and advanced undergraduates are encouraged to attend. Empirical and theoretical papers dealing with reform in a single country or comparing reforms in many countries are welcome.
Economics 2480. Public Economics and Fiscal Policy: Research Seminar
Catalog Number: 6834
David M. Cutler, Martin Feldstein, Caroline M. Hoxby, John F. McHale, and Emmanuel Saez
Full course. M., 4–6. EXAM GROUP: 9
Focuses on current issues in the theory and practice of public finance including both tax and expenditure policies.
[Economics 1535. International Trade and Investment]
Catalog Number: 2557
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Half course (spring term). M., W., 2:30–4. EXAM GROUP: 7, 8
Analysis of the causes and consequences of international trade and investment. Attention focused on the interplay of economic theory and empirical descriptions of foreign trade and direct investment patterns.
Note: Expected to be given in 2000–01.
Prerequisite: Social Analysis 10, Economics 1010a or 1011a.
[Economics 1542. International Trade Policy]
Catalog Number: 2613
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Half course (spring term). Tu., Th., 8:30–10. EXAM GROUP: 10, 11
Provides an introduction to the theory, history and empiricalevaluation of international trade policy. Begins by reviewing thetheory of trade and trade policy in both competitive andnon-competitive environments. The determinants and impact of 19th and 20th century trade policies are discussed. The course concludes with an evaluation of major current trade policy debates.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 1010a or 1011a, or permission of instructor.
Economics 1545. International Financial and Macroeconomic Policy
Catalog Number: 5166
Kenneth Rogoff
Half course (fall term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
Advanced theoretical and empirical analysis of contemporary international macroeconomic policy issues, including speculative attacks on exchange rates and sovereign debt. First part of the course develops theoretical and empirical foundations, whereas last part of the course looks at a number of policy issues related to redesigning the international financial architecture.
Prerequisite: Economics 1010b or 1011b
Economics 2530b. International Finance I
Catalog Number: 7144
Kenneth Rogoff
Half course (spring term). M., W., 2:30–4. EXAM GROUP: 7, 8
Financial aspects of growth and income determination in open economies. Specific topics include financial risk in the international setting; money and exchange rate regimes; income determination and macroeconomic policy; history of international monetary arrangements, and current issues in international monetary reform.
Prerequisite: Economics 2530a provides extremely useful background for topics in this course.
[Economics 2530d. Macroeconomic Stabilization and Reform in Developing and Socialist Economies]
Catalog Number: 4117 Enrollment: Limited to 25.
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Half course (spring term). Tu., Th., 11:30–1. EXAM GROUP: 13, 14
Macroeconomic policy issues faced by developing countries and formerly socialist countries engaged in major economic reforms. Topics include stabilization programs to end high inflation; introduction of exchange rate convertibility; trade liberalization; strategies of privatization; financial-market restructuring; the role of international financial institutions.
Note: Expected to be given in 2000–01. Preference given to students seeking to prepare dissertations in this area.
[Economics 2535. Advanced Topics in International Finance ]
Catalog Number: 6410
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Half course (spring term). Tu., 2–4. EXAM GROUP: 16, 17
This course will cover theoretical and empirical topics concerning the determinants of world trade patterns.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 2530a or permission of instructor.
Economics 2536. Topics in International Finance
Catalog Number: 1718
Aaron Tornell
Half course (fall term). W., 2–4. EXAM GROUP: 7, 8
Microfoundations of various topics in international finance. Includes international business cycles. Fixed and flexible exchange rate regimes: exchange rate determination, speculative attacks and target zones. PPP, price rigidities and exchange-rate pass-through. Capital controls and dual exchange rates. Stabilizations, capital flight and credibility. The Feldstein-Horioka paradox. Monetary integration and policy coordination.
Note: Expected to be omitted in 2000–01.
[Economics 2537. International Economic Policy Analysis]
Catalog Number: 1699
Dani Rodrik (Kennedy School)
Half course (spring term). M., 2–4. EXAM GROUP: 7, 8
An advanced seminar on international economic analysis for students who are already familiar with the theories of international trade and open-economy macroeconomics. Objective is to develop expertise with economic models used for the analysis of policy issues. The course focuses on a revolving set of issues, such as: U.S. trade and industrial policy; the debate on trade, jobs, and wages; GATT, WTO, and beyond; the exchange-rate system and currency crises; European integration; international integration and economic growth; and the design of multilateral regimes and institutions.
Note: Expected to be given in 2000–01. Offered jointly with the Kennedy School as ITF-345.
Prerequisite: Multivariate calculus and constrained optimization, and exposure to international economics at the graduate level.
Economics 2540. International Economics: Seminar
Catalog Number: 4008
Richard N. Cooper (spring term), Elhanan Helpman, Dani Rodrik (Kennedy School), Kenneth Rogoff, Aaron Tornell (fall term), and Shang-Jin Wei (Kennedy School)
Full course. W., 4–6. EXAM GROUP: 9
Research papers in all aspects of international economics, including theory, econometrics, and policy.
[Economics 1601. Regulation and Antitrust]
Catalog Number: 2851
Richard E. Caves
Half course (spring term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
Examines the economic rationales for government intervention into business decisions. Considers both traditional regulation and recent progress towards deregulation of public utilities, such as telecommunications firms or electric utilities. Also considers the enforcement of antitrust policies. The course will provide an overview of the institutions through which government policies are implemented and will consider evidence on the impact of regulatory and antitrust policy.
Note: Expected to be given in 2000–01.
Prerequisite: Social Analysis 10.
Economics 1630. Economics and the Arts
Catalog Number: 4884
Richard E. Caves
Half course (spring term). M., W., F., at 9. EXAM GROUP: 2
This course explores the economic issues that arise in the organization of economic activity in the visual and performing arts and industries with substantial “creative” components. Issues of domestic and international public policy are addressed.
Note: Expected to be omitted in 2000–01.
Prerequisite: Social Analysis 10
[Economics 1660. Law and Economics]
Catalog Number: 2236
Steven Shavell (Law School)
Half course (fall term). M., W., 2–3:30. EXAM GROUP: 7, 8
The emergence of the economic approach to the analysis of law — the hallmark of which is its focus on determining the consequences of legal rules — is today generally acknowledged to be one of the most significant developments in 20th century legal scholarship. The course will systematically consider this new field of law and economics. Subjects to be covered are the four basic areas of legal systems: property law, contract law, tort law (civil liability), criminal law and law enforcement. Also to be discussed are aspects of the legal process (notably, suit, settlement, legal expenditures).
Note: Expected to be given in 2000–01.
Prerequisite: Social Analysis 10.
Economics 1661. Environmental and Resource Economics and Policy
Catalog Number: 2115
Robert N. Stavins (Kennedy School)
Half course (spring term). M., W., 1–2:30. EXAM GROUP: 6, 7
Provides a survey, from the perspective of economics, of policy issues associated with natural resource use and environmental protection. Lectures on conceptual and methodological topics are combined with case discussions of actual resource and environmental controversies. Topics: principles of environmental and resource economics; nonrenewable resources (minerals and energy), renewable resources (water, forests, land, fisheries, and wildlife); air pollution (stationary and mobile sources, acid rain, and global climate change); water pollution (point and nonpoint sources); waste management; sustainable development and political aspects of environmental policy.
Note: Offered jointly with the Kennedy School of Government as ENR-201.
Prerequisite: Social Analysis 10 or permission of instructor.
Economics 1690 (formerly Economics 1490). Economic Theory of the Environment and Natural Resources
Catalog Number: 2939
Martin L. Weitzman
Half course (fall term). M., W., 1–2:30, plus section F., 1–2:30. EXAM GROUP: 6, 7
Provides a survey of the conceptual, analytical, and theoretical foundations of environmental and natural resource economics. Topics include the theory of public goods and externalities, common property, and alternative policies for controlling pollution. Dynamic analysis of the extraction and exploitation of renewable (e.g., fisheries) and nonrenewable (e.g., minerals) natural resources. Some treatment of theoretical aspects of cost-benefit analysis, environmental accounting, and sustainable development. An exploration of the basic conceptual issues involved in modeling biodiversity preservation.
Note: This is a mathematically rigorous course that provides the basic analytic framework for students seriously interested in environmental economics.
Prerequisite: Economics 1010a, Mathematics 20, or equivalent.
Economics 2611. Industrial Organization II
Catalog Number: 2302
Catherine D. Wolfram
Half course (spring term). Tu., Th., 11:30–1. EXAM GROUP: 13, 14
Application of industrial organization to problems of public policy. Analysis of antitrust policy; public utility regulation; regulation and deregulation of electricity, telecommunications and other sectors; health, safety and environmental regulation.
Note: Students are urged to take Economics 2610 before Economics 2611.
[Economics 2630. Technology, Competition, and Growth]
Catalog Number: 2947
Zvi Griliches
Half course (spring term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
Technological change: definitions, sources, models, and measures. Diffusion and its impact on measured productivity. Science, R&D, patents, and other measures of inventive activity. Market structure and innovation. Models of technological competition, domestic and international. Implications for growth and distribution.
Note: Expected to be given in 2000–01.
Prerequisite: Economics 2140a, 2140b, and 2110b, or equivalent.
Economics 2640hf. Topics in Industrial Organization: Seminar
Catalog Number: 5981
Richard E. Caves, Ariel Pakes, and Catherine D. Wolfram
Half course (throughout the year). Fall: F., 2:30–4; Spring: M., 2:30–4. EXAM GROUP: 7, 8
*Economics 2690hf (formerly Economics 2490hf). Environmental Economics and Policy: Seminar
Catalog Number: 4324
Robert N. Stavins (Kennedy School) and Martin L. Weitzman
Half course (throughout the year). W., 4–5:30. EXAM GROUP: 9
Selected topics in environmental and resource economics. Emphasizes theoretical models, quantitative empirical analysis, and public policy applications. Includes invited outside speakers.
Note: Primarily for graduate students in economics or related fields with environmental interests. Offered jointly with the Kennedy School of Government as ENR-551y.
Prerequisite: Graduate-level course in microeconomic theory.
Economics 1812. Operation of the Labor Market
Catalog Number: 0421
James L. Medoff
Half course (spring term). M., W., (F.), at 10. EXAM GROUP: 3
Presents the tools employed in research on the operation of the labor market and then uses them to discuss issues such as the determinants of earnings differentials, the impact of various firm characteristics on labor-market outcomes, discrimination, and unemployment.
Prerequisite: Social Analysis 10 and Economics 1010a.
[Economics 1813. The Indebted Society]
Catalog Number: 6957
James L. Medoff
Half course (fall term). M., W., (F.), at 10. EXAM GROUP: 3
This course first charts the sharp growth of corporate, personal, and government indebtedness in the U.S. The class will then discuss the implications of these spurts in debt. Finally, we will ask how do we best function in this new world?
Note: Expected to be given in 2000–01.
Prerequisite: Social Analysis 10, Economics 1010a.
Economics 1815 (formerly Economics 1015). Social Problems of the American Economy
Catalog Number: 3130
Lawrence F. Katz
Half course (fall term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
Examines selected social and economic problems of the U.S. and evaluates market and governmental solutions. Topics include discrimination; income and wage inequality; welfare reform; antipoverty strategy, including education and training programs; homelessness; crime; and charitable behavior.
Note: A research paper is required.
Economics 1818. Economics of Discontinuous Change
Catalog Number: 3029
Richard B. Freeman
Half course (spring term). Tu., Th., at 1. EXAM GROUP: 15
This course explores discontinuous changes in the economic position of groups and countries and presents mathematical and computer simulation models designed to illuminate these changes. Among the examples are: growth/decline of trade unions; segregation of groups; changes in corporate work culture; growth of social pathologies in neighborhoods; Malthusian concerns about the environment. Among the models are: nonlinear simulations; neural networks; finite automata; evolutionary stable strategies; causal conjunctures; agent-based simulations; genetic algorithms. Primary emphasis is on using models and computer programs to analyze the substantive examples rather than on mathematics.
Note: The course requires a research paper. Students should have some mathematical background, but there is no prerequisite. The course is primarily designed for undergraduates.
Economics 1822. Economics of Education
Catalog Number: 1004
Caroline M. Hoxby
Half course (fall term). M., W., 1–2:30. EXAM GROUP: 6, 7
This course explores questions such as why people attain different levels of education, why schools are or are not efficient, how education should be financed to achieve both equity and efficiency goals, what explains rising tuition in higher education, and whether education is an engine of macroeconomic growth. The course rigorously examines education topics using economic theory from labor economics (human capital investment, the market for teachers), public economics (financing K-12 education, public colleges), industrial organization (the structure of the education industry, agency problems in public education), and macroeconomics (growth theory). The emphasis on application of theory, the discussion of recent research, and the option of a research paper make this a useful course for students thinking about honors theses in economics.
Note: Expected to be omitted in 2000–01.
Prerequisite: Economics 1010a or 1011a or permission of the instructor.
[Economics 1870. Work, Leisure, and Consumption]
Catalog Number: 2116
Juliet Schor
Half course (spring term). M., W., 1–2:30. EXAM GROUP: 6, 7
Focuses on the role of work, leisure, and consumption in the United States. Topics include the historical evolution of work and working hours; the modern corporation, the sexual division of labor and “women’s work”; trends in working hours; why people consume; addiction and status models of consumption; the ecological critique of consumption; simple living; and possibilities for transforming structures of work, leisure, and consumption.
Note: Expected to be given in 2000–01.
Prerequisite: Social Analysis 10 or permission of instructor.
Economics 2800chf. Urban Economics, Transportation, and Regional Economic Development: Seminar
Catalog Number: 5383
John R. Meyer (Kennedy School) and Edward L. Glaeser
Half course (throughout the year). Fall: Tu., 12–2; Spring: Tu., 1–2:30. EXAM GROUP: Fall: 14, 15; Spring: 15, 16
Working seminar based on presentations of ongoing research for graduate students specializing in urban economics, regional economics, and transportation.
Note: Students enrolled for credit must prepare and present a research paper.
Prerequisite: Economics 2800a,b or permission of instructor.
Economics 2810a. Labor Market Analysis
Catalog Number: 4862
Caroline M. Hoxby and Lawrence F. Katz
Half course (fall term). M., W., 10–11:30. EXAM GROUP: 3, 4
An introduction to theoretical and empirical research related to labor markets, wages, education, employment and unemployment. Wage determination topics include: equalizing differences, self-selection, human capital, education, training, job mobility, and recent wage theories including matching, agency, insurance, and tournament models. Labor supply topics include: allocation of time, taxes, unemployment insurance, and life-cycle models. Labor demand topics include: the effect of minimum wage on employment, dynamic adjustment models, and the impacts of technological change and international trade on the wage structure. Provides an introduction to current empirical methods in applied microeconomics.
Economics 2810b. Labor Economics and Labor Market Institutions
Catalog Number: 3206
Lawrence F. Katz and Richard B. Freeman
Half course (spring term). Tu., Th., 10–11:30. EXAM GROUP: 12, 13
Focuses on the operation of the labor market and impact of labor market institutions on labor market outcomes. Topics include labor econometrics; theories of wage determination; empirical analysis of wage differentials and changes in the wage structure; models of trade union behavior and research on the impact of unions; institutional change in the labor market; unemployment; labor market segmentation and discrimination; and the labor market in an open economy.
Economics 2812. Labor Economics: Seminar
Catalog Number: 0230
Richard B. Freeman, Caroline M. Hoxby, Lawrence F. Katz, and David Sang-Yoon Lee
Full course. W., 4–5:30. EXAM GROUP: 9
Focuses on research concerning the operation of labor markets.
*Economics 2813. Labor and Work Life Forum
Catalog Number: 1415
Paul C. Weiler (Law School) and Richard B. Freeman
Half course (spring term). M., 3:30–5:30. EXAM GROUP: 8, 9
Research and discussion with trade union leaders and management concerning labor issues.
Economics 2910. Topics in Health Economics: Seminar
Catalog Number: 7617
David M. Cutler, William C. Hsiao (Public Health), and Joseph P. Newhouse
Half course (spring term). W., 4:30–6. EXAM GROUP: 9
Focuses on theory, econometric models, and public policy of health care. Frontier work in health economics presented and discussed by instructors and outside speakers. Topics include public and private investments in health, hospital and physician behavioral models, markets and competition in health care, and regulation and financing health services.
Note: May be taken for credit only by dissertation students presenting research.
*Economics 3005. Reading and Research
Catalog Number: 3493
Members of the Department
Any professor, associate professor, assistant professor, or lecturer in residence is available for this course. Individual work or work in small groups, in preparation for the general examination for the Ph.D. degree, or by arrangement, in special topics not included in the announced course offering.
*Economics 3010. Direction of Doctoral Dissertations
Catalog Number: 4579
Members of the Department
Note: In all cases the thesis topic must have been formally submitted to and approved by a thesis advisor.
*Economics 3011. Seminar in Economic Theory
Catalog Number: 0109
Laurent E. Calvet 1495, Drew Fudenberg 3460 (on leave fall term), Jerry R. Green 1539, and Eric S. Maskin 1070 (on leave 1999-00)
Half course (fall term; repeated spring term). W., 12–1:30.
Serves mainly as a forum for presentations by graduate students of their current research. Work presented can be very preliminary and conjectural.
Prerequisite: Economics 2010a,b or 2020 a,b.
Economics 3086r (formerly Economics 2086r). Advanced Theory Workshop
Catalog Number: 6378
Jerry R. Green 1539, Laurent E. Calvet 1495, Oliver S. Hart 3462, Eric S. Maskin 1070 (on leave 1999-00), and Alvin E. Roth 564
Half course (fall term; repeated spring term). Th., 4–5:30.
*Economics 3163hf. Research in Econometrics
Catalog Number: 4392
Gary Chamberlain 1745, Zvi Griliches 2078 (on leave fall term), Dale W. Jorgenson 2000 (on leave spring term), Jack R. Porter 2337, and James H. Stock (Kennedy School) 1783
Half course (throughout the year). Th., 11:30–1.
Participants discuss recent research in econometrics and present their own work in progress. Open to doctoral students in Economics who have passed their general oral examinations.
[*Economics 3336hf. Topics in Economic History]
Catalog Number: 0639
Claudia Goldin 2667 and Jeffrey G. Williamson 7680
Half course (throughout the year). M., 12–2.
Primarily for faculty, visitors, and graduate students writing dissertations in economic history. Discussions of work in progress.
Note: Expected to be given in 2000–01.
*Economics 3390hf. Research in Economic Development
Catalog Number: 2532
Michael Kremer 2112, Dwight H. Perkins 2300, Ashok S. Rai (Kennedy School) 3127, and Jeffrey G. Williamson 7680
Half course (throughout the year). W., 12–1:30.
Participants discuss recent research in development economics and present their own work in progress. Open to doctoral students in economics who have passed their oral examinations.
*Economics 3410dhf. Workshop on Macroeconomic Research
Catalog Number: 2126
Alberto F. Alesina 2074, Robert J. Barro 1612 (on leave spring term), Francesco Caselli (University of Chicago) 1489, Christopher L. Foote 2333, David I. Laibson 1241 (on leave 1999-00), and N. Gregory Mankiw 1118
Half course (throughout the year). Tu., at 12.
Participants discuss recent research in macroeconomics and present their own work in progress. Open to doctoral students in economics who have passed their general oral examinations.
*Economics 3423hf. Research in Financial Economics
Catalog Number: 4107
John Y. Campbell 1230 and Rafael La Porta 1466 (on leave 1999-00)
Half course (throughout the year). TBA.
Participants discuss recent research in financial economics and present their own work in progress. Open to doctoral students in economics who have passed their general oral examinations.
*Economics 3425hf. Topics in Organizations
Catalog Number: 6164
Oliver S. Hart 3462 and Andrei Shleifer 2772
Half course (throughout the year). Tu., 12–1.
*Economics 3450chf. Research in Public Economics and Fiscal Policy
Catalog Number: 3436
David M. Cutler 2954, Edward L. Glaeser 3219, Caroline M. Hoxby 1235, Lawrence F. Katz 1480, John F. McHale 1674, and Emmanuel Saez 1654
Half course (throughout the year). Th., 1:30–3.
Participants discuss recent research in public economics and fiscal policy and present their own work in progress.
Note: Open to doctoral students in Economics who have passed their oral examinations.
*Economics 3460chf. Research in Health Economics
Catalog Number: 5309
David M. Cutler 2954 and Joseph P. Newhouse 2425
Half course (throughout the year). Hours to be arranged.
Participants discuss recent research in health economics. Course may also include presentation of original research by participants.
Note: Open to doctoral students only. Enrollment by permission of instructors.
*Economics 3530hf. Research in International Economics
Catalog Number: 5777
Elhanan Helpman 2334, Kenneth Rogoff 1746, and Aaron Tornell 3547 (fall term only)
Half course (throughout the year). W., at 12.
Participants discuss recent research in international economics and present their own work in progress. Open to doctoral students in economics who have passed their oral examinations.
[*Economics 3531hf. Workshop on International Finance]
Catalog Number: 1377
Elhanan Helpman 2334 and Aaron Tornell 3547 (fall term only)
Half course (throughout the year). W., at 12:30.
Participants discuss recent research in international finance and present their own work in progress. Open to doctoral students in economics who have passed their general oral examinations.
Note: Expected to be given in 2000–01.
*Economics 3650hf. Research in Industrial Organization
Catalog Number: 3318
Richard E. Caves 1414, Ariel Pakes 1774, and Catherine D. Wolfram 2339
Half course (throughout the year). W., 4–5:30.
Open to doctoral students in economics who have passed their general examinations and are in the early stages of their dissertations. Participants present their own research in progress in an informal setting.
Economics 3660hf. Law and Economics: Research Seminar
Catalog Number: 4325
Oliver S. Hart 3462, Lucian Arye Bebchuk (Law School) 2042, and Louis E. Kaplow (Law School) 3223
Half course (throughout the year). W., 4–6.
The presentation of work in progress in the field of law and economics. Presentations to be made by members of the various Harvard faculties, outside speakers, and graduate students. Open to all faculty and students with an interest in law and economics.
*Economics 3810chf. Research in Labor Economics
Catalog Number: 4066
Claudia Goldin 2667, Caroline M. Hoxby 1235, Lawrence F. Katz 1480, and David Sang-Yoon Lee 2859
Half course (throughout the year). Th., 1:30–3.
Participants discuss recent research in labor economics and present their own work in progress. Open to doctoral students in Economics who have passed their general oral examinations.