Courses
The following course descriptions are taken from the text of the Reed College catalog. Due to our desire to rotate courses, and to rotate faculty through certain courses, there are always some changes in scheduling and course instructors from year to year. You can assume that courses required for the major will be offered every year.
ECON 151 - Introduction to Personal Finance
This course will teach students about their relationship with money. The course covers many of the behavioral reasons for the financial decisions we make. Specific financial topics include budgeting, insurance, taxes, and retirement.
ECON 201 - Introduction to Economic Analysis
This course will introduce students to the analytical approaches and tools of the economics discipline, and how these are used to examine current issues and problems that arise in the functioning of economic systems. Microeconomic theories of consumption, production, and exchange provide much of the analytical framework that will be utilized, although we will also explore some relevant applications to the macroeconomy. A central feature of this course is the examination of markets and how they determine what is produced and how it is allocated. We also devote some attention to evaluating market outcomes, to thinking about remedies to resource allocation problems that markets cannot solve, and to thinking about the factors that determine long-run productive capacity and income potential.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 281 - Revolution and Reform in Chinese Agriculture
China's incredible economic transformation and growth trajectory started simply, by most accounts, with a few carefully chosen modifications to the incentive structure faced by farmers. The move away from collective farming is credited with unleashing productivity forces well beyond initial expectations and paving the way for a continuing series of market-oriented reforms, first in the rural and later in the urban sector. What is less well known, however, is that China also experienced a short-lived farm production boost in an earlier era, shortly after formation of the People's Republic of China. In contrast to the decentralization moves in the 1980s, rather the 1950s was characterized by gradual introduction of collective resource ownership and management, ultimately leading to commune-style farming. We will draw from a variety of analytical sources to understand how China transformed itself twice, in opposite directions, exploring the impetuses behind these changes, their impacts, and their legacies.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 304 - Intermediate Macroeconomics
A survey of basic theories of economic growth and business cycles using graphical and algebraic methods. Studies the relationships among aggregate economic variables such as GDP, inflation, interest rates, unemployment, and exchange rates. Analysis of macroeconomic policy issues.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 311 - Survey of Econometric Methods
An introduction to applications of empirical methods in economics. Students are introduced to the nature and sources of economic data and basic concepts of statistics and econometrics. Topics include the estimation of econometric models, hypothesis testing, and forecasting. Emphasis is placed on the use of these techniques in empirical economic literature. This course is not designed for students who have taken upper-level statistics courses. Students who have taken MATH 141 are encouraged to take ECON 312.
- Evaluate data and/or sources.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 312 - Theory and Practice of Econometrics
An introduction to the statistical methods commonly used in economic research. Classroom development of theoretical material is combined with extensive hands-on practice of econometric techniques. Statistical methods discussed include estimation and inference in simple and multiple linear regression models, detection and correction of autocorrelation and heteroskedasticity, time-series models and distributed lags, and estimation of systems of simultaneous equations. Considerable emphasis is placed on learning to specify, implement, and evaluate tests of economic hypotheses.
- Evaluate data and/or sources.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 313 - Microeconomic Theory
This course provides a thorough exposition of neoclassical theories of producer and consumer behavior. Considerable attention is devoted to understanding the economic concept of efficiency and demonstrating the efficiency of competitive equilibrium in a general equilibrium framework. The efficiency of market outcomes under alternative assumptions is also examined, and some time is devoted to discussing social choice theory and the limits of the market.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 314 - Macroeconomic Theory
A detailed introduction to modern theories of economic growth and business cycles. Emphasizes the derivation of relationships among aggregate variables from assumptions about the behavior of households and firms. Examines empirical evidence for and against macroeconomic theories. This course is not designed for students who have taken ECON 304; students who have should consider ECON 416.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 315 - Game Theory
Game theory is the study of strategy. This course introduces students to game theory and its application in a wide range of situations. We study various classes of games, including static and dynamic games as well as those of complete and incomplete information. We also consider various solution concepts, including iterated elimination of dominant strategies and Nash equilibrium. Numerous refinements of the Nash equilibrium concept, including subgame perfect Nash equilibrium, Bayesian Nash equilibrium, and perfect Bayesian equilibrium, are also considered. We apply game theory to the study of competition, the commons, bargaining, auctions, conventions, institutions, and political decision-making.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 328 - Latin America: Economic History and Policy Challenges
This course traces the economic development of Latin America from colonial times to the present. The first half of the course explores the economic history of Latin America, focusing on the creation of economic institutions that have shaped the growth and specific features of Latin American economies from the Spanish and Portuguese conquests through the second half of the twentieth century. Among the topics that will be studied in this part of the course are land property and reform, coercive labor institutions, development of export-oriented sectors, and the political economy of reform in the Latin American republics. The second part of the course examines current public policy issues such as crime, housing, inequality, and education from a microeconomic perspective.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 342 - International Macroeconomics
This course examines the macroeconomic linkages between countries. The core of macroeconomic theory is extended to the open economy. In this context, a number of issues are addressed, including current account imbalances, the role of fiscal and monetary policy in an open economy, and the choice of an exchange rate regime. Illustrations come from the adoption and abandonment of the gold standard, the European monetary union, and financial crises both past and present.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 345 - Financial Economics
This course aims to familiarize students with the workings of financial markets and investment decision-making. It is designed to provide an understanding of the main financial models for valuing assets in conditions of certainty and uncertainty and the implications of market efficiency. The course content introduces students to the practical side of financial risk management and develops an understanding of competing views about financial market behavior. Asset values and rates of return will be examined together with the use of portfolios in risk diversification. The course will review the main asset pricing models and consider the problems encountered when testing them empirically. Theoretical issues that are currently outstanding in this field will be discussed.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 348 - Economics of the Public Sector
This course considers the role of government in the economy. We examine the theoretical rationale for government intervention in the economy and the economic consequences of such government intervention, with examples coming primarily from the United States. In addition, the course studies how taxation affects economic efficiency, income distribution, capital formation, and microeconomic incentives. Major topics include environmental regulation, publicly funded education, welfare, social security, health care, tax reform, and international public finance.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 351 - Environmental Economics
This course presents an economic analysis of environmental issues and policies. We will examine the impact of the economy on the environment, the importance of the environment to the economy, and how policies such as transferable permits, subsidies, taxes, and regulations affect the environment and economy. Concepts covered in this course include static efficiency, equity, property rights, discounting, cost-benefit analysis, risk and uncertainty, market failure, nonmarket valuation techniques, and sustainability.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 352 - Natural Resource Economics
This course presents an economic analysis of renewable and nonrenewable natural resources. Concepts introduced include static and dynamic efficiency, equity, property rights, discounting, market failure, nonmarket valuation, and sustainability. The course will cover current and proposed policies for resource management such as transferable quotas, taxes, subsidies, regulations, and public versus private ownership.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 358 - Urban Economics
In this course, the focus is on the city, in determining its costs and benefits as well as location and land use. We explore policy issues specific to local governments in urban areas, including zoning, housing and segregation, poverty, homelessness, transportation, education, and crime.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 362 - Industrial Organization
In a market economy, firms decide what and how much is produced. This course introduces the student to the study of firm behavior, providing a solid foundation on the core theory that explains firms' incentives and market structures. We also explore real-world application of these concepts with an emphasis on the modern U.S. economy. Topics to be covered include perfect competition, monopoly, dynamic oligopoly and collusion, antitrust and mergers, and vertical relationships.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 364 - Economics of Population, Gender, and Race
This course will consider race and gender as they influence and are reflected in decisions about schooling, work, and family. Using microeconomic models of marriage, fertility, migration, labor supply, and human capital investment, we will analyze and try to explain observed trends. Drawing on well-established literatures in the fields of labor economics and economic demography to provide frameworks for our discussions, we will consider the theoretical and empirical findings in light of their potential contributions to policy.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 366 - Jobs, Technology, and Trade
Investigation of the causes and consequences of changing patterns of labor demand. We will seek to understand how technological innovation and a rising volume of trade influence the structure of labor demand and the organization of the workplace. Effects on wage levels, wage inequality, and patterns of employment will be examined. The role of worker representation, in various forms, will be considered along with an analysis of factors that contribute to labor organizing efforts and outcomes. We will focus our attention on the U.S. labor market although comparative analysis with the experiences of other industrialized countries will enhance our understanding.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 371 - Law and Economics
Applications of microeconomic theory focused on common law and the legal system. Topics include the effect of the legal system on resource allocation, the establishment and scope of property rights, allocation of risk and efficient investments in precaution, product liability, and an economic analysis of criminal behavior and punishment.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 382 - Economics of Development
We consider the economic problems and policies of poor countries, with attention to the concept and measurement of economic development; human capital investments over the life cycle; gender and household decision-making; land, labor, credit, and insurance markets; inequality and development; the role of institutions and the state; and debates over the effectiveness of foreign aid. Factors and constraints influencing economic decision-making, including market failures and potential strategies for their resolution, are a recurring theme.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 383 - International Trade
This course analyzes the causes and consequences of international trade. The theory of international trade and the effects of trade policy tools are developed in both perfect and imperfect competition, with reference to the empirical evidence. This framework serves as a context for a discussion of several important issues: the effect of trade on income inequality, the relationship between trade and the environment, the importance of the World Trade Organization, strategic trade policy, the role of trade in developing countries, and the effects of free trade agreements.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 385 - China's Economy in Transition
In the course of a few decades, China has launched itself from a poor country to a rising world power, at the same time substantially improving living standards and dramatically transforming its production base. What steps did China take to bring about these changes? We will examine China's economic reforms and development, considering the goals and impacts of various policy measures along with ongoing challenges. Topics to be considered include population, labor, income inequality, land, food production, industry, foreign relations, credit and financial markets, macroeconomic policy, and the environment. While China will be our central focus, students will have some opportunities to compare and contrast with other country experiences.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 393 - Global Health and Consumer Behavior
This course explores global health care, health outcomes, and health insurance markets from a consumer's perspective. Students will apply health insurance theory to health care systems across the globe. We will read and discuss current literature about health phenomena and disease burdens in both developed and developing countries. Students will learn to analyze health behaviors from an economic perspective by, for example, evaluating how responsive demand for health inputs is to changes in the price of those inputs, exploring how information affects health behaviors, and determining the value of health insurance.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 401 - Contemporary Topics in Economics
A detailed examination of a topic of current theoretical or policy interest. Prerequisite(s) vary according to topic.
ECON 416 - Computational Macroeconomics
This course offers an introduction to the basic programing concepts and analysis of applied macroeconomic models using numerical methods. Students learn how to write computer programs to simulate macroeconomic models. These models will be used to answer questions related to many areas of macroeconomics, including growth, business cycles, patterns of consumption and savings over the life cycle, and the distribution of wealth, among other topics. No prior programming skills required.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.
ECON 418 - Behavioral Economics
Drawing on methods from psychology, sociology, neurology, and economics, this course sheds light on one of the most fundamental human activities: decision-making. In Behavioral Economics students will learn about the theories and methods that help us understand and explain economic choices that we all make every day. Topics include loss aversion, impulsiveness, notions of fairness and trust, cognitive dissonance, overconfidence, anchoring, framing, conformity, and intrinsic motivation.
- Evaluate data and/or sources.
- Analyze institutions, formations, languages, structures, or processes, whether social, political, religious, economic, cultural, intellectual or other.
- Think in sophisticated ways about causation, social and/or historical change, human cognition, or the relationship between individuals and society, or engage with social, political, religious or economic theory in other areas.