Economics

Economics courses

Director of undergraduate studies: Anthony Smith, Rm. 306, 28 Hillhouse Ave., 432-3583 or 432-3574, qazi.azam@yale.edu

FACULTY OF THE DEPARTMENT OF ECONOMICS

Professors   Joseph Altonji, Donald Andrews, Dirk Bergemann, Steven Berry, Truman Bewley, †Richard Brooks, Donald Brown, Xiaohong Chen, †Judith Chevalier, Pradeep Dubey (Visiting), Eduardo Engel, Ray Fair, †Joan Feigenbaum, †Howard Forman, John Geanakoplos, †William Goetzmann, Pinelopi Goldberg, Timothy Guinnane, Philip Haile, Koichi Hamada, Johannes Horner, Gerald Jaynes, Dean Karlan, Yuichi Kitamura, Alvin Klevorick, Naomi Lamoreaux, Richard Levin, Giovanni Maggi, Konstantinos Meghir, †Robert Mendelsohn, Giuseppe Moscarini, †Barry Nalebuff, William Nordhaus, Peter Phillips, Benjamin Polak, †John Roemer, Mark Rosenzweig, Larry Samuelson, Herbert Scarf, †Peter Schott, Robert Shiller, †Jody Sindelar, Anthony Smith, †Shyam Sunder, Aleh Tsyvinski, Christopher Udry, †Ernesto Zedillo

Associate Professors   †Sheila Olmstead, Ebonya Washington

Assistant Professors   Costas Arkolakis, David Atkin, †Christopher Blattman, Eduardo Faingold, Mitsuru Igami, Daniel Keniston, Amanda Kowalski, Guillermo Ordoñez, Taisuke Otsu, Nancy Qian, Kareen Rozen, Melissa Tartari, Eric Weese

Senior Lecturers   Cheryl Doss, Tolga Koker

Lecturers   Seven Agir, Irasema Alonso, Michael Boozer, Douglas McKee, Nicholas Perna, Michael Schmertzler, Katerina Simons, David Swensen, Dean Takahashi

†Primary appointment in another department or school.

Economics concerns the wealth of nations, its origins in production and exchange, its allocation among competing uses, its distribution among individuals, and its accumulation or decline. Economics at Yale is regarded and taught as part of a liberal education, not as a preparation for any particular vocation. Nonetheless, economics provides an especially relevant background for a number of professions.

Requirements of the major   Students majoring in Economics are required to take twelve term courses. Two of these may be introductory economics courses, one in microeconomics and one in macroeconomics. All majors must take the following courses: one term of intermediate microeconomics (ECON 121 or 125); one term of intermediate macroeconomics (ECON 122 or 126); one term of econometrics (ECON 131, 132, or 136); and one Yale mathematics course, usually selected from MATH 112, 115, 118, or 120. Students who place out of these mathematics courses must take a higher-level mathematics course at Yale and should consult the director of undergraduate studies in Economics. All of these required courses should be completed prior to the senior year. Majors must also take two courses numbered ECON 400–491, at least one of which must be taken in the senior year.

Subject to approval by the director of undergraduate studies, students may count toward the major one course related to economics but taught in another field, in addition to the required course in mathematics.

Students who take a term abroad or take summer courses not at Yale may petition the director of undergraduate studies to count at most two courses from outside Yale toward the requirements of the major. Students who take a year abroad may petition to count at most three courses. Many economics courses taken outside Yale do not meet the requirements of the Economics major; students should consult with the director of undergraduate studies before taking such courses. Courses taken outside Yale may not be counted toward the major requirements in intermediate microeconomics, intermediate macroeconomics, or econometrics.

Courses taken Credit/D/Fail may not be counted toward the requirements of the major.

Introductory courses   These courses serve students considering a major in Economics as well as others who would like an introduction to the subject. Most students enroll in ECON 115 and 116, lecture courses with a discussion section. ECON 115 is concerned with microeconomics and includes such topics as markets, prices, production, distribution, and the allocation of resources. ECON 116 covers such macroeconomic issues as unemployment, inflation, growth, and international economics; it has a microeconomics prerequisite.

ECON 110 and 111 are limited-enrollment alternatives to ECON 115 and 116; they are open only to freshmen selected from those who preregister. ECON 108 also covers microeconomics, but with a greater emphasis on quantitative methods and examples. It is intended for, but not restricted to, freshmen with little or no experience with calculus. Enrollment is limited, and preregistration is required. The substance of ECON 108, 110, and 115 is similar, and ECON 111 and 116 are similar as well. A student may receive credit for only one course each in introductory microeconomics and introductory macroeconomics.

The department recommends that students interested in majoring in Economics take introductory economics in the freshman year. In order to make the introductory courses available to all freshmen and to students majoring in other subjects, the introductory courses do not have a mathematics requirement.

Introductory courses: placement and exemptions   Students with a score of 5 on the Advanced Placement tests for microeconomics and macroeconomics and a score of 5 on the Advanced Placement Calculus BC test may petition the director of undergraduate studies to place out of introductory microeconomics and enroll directly in intermediate microeconomics. It is recommended that students with a score of 5 on the Advanced Placement economics tests but without a 5 on the Calculus BC test take a Yale mathematics course such as MATH 115 or 120, and then petition the director of undergraduate studies to place out of introductory microeconomics and instead take intermediate microeconomics in the following term. Students with high scores on examinations equivalent to Advanced Placement, such as the GCE A-level or Higher Level International Baccalaureate, may also petition to be exempted from the introductory courses. For other placement and exemption questions, consult the Economics department Web site.

Mathematics   Students are advised to meet the mathematics requirement for the major during their freshman year. The department also recommends that majors either complete MATH 118 or complete two term courses including MATH 120 and either 222 or 225. The latter two-term sequence is preferable for students who wish to take further mathematics courses or who plan to pursue a graduate degree in economics.

Econometrics   Students are advised to take a two-term sequence of statistics and econometrics courses, especially if they are considering a senior essay. One option is to take ECON 131 followed by 132. Students with a stronger mathematics background or who plan to pursue a graduate degree in economics are encouraged to take either ECON 135 or STAT 241 and 242, followed by ECON 136. Prospective majors are urged to start their econometrics sequence in the fall of sophomore year.

Intermediate microeconomics and macroeconomics   Along with econometrics, intermediate microeconomics and macroeconomics form the core of the major. Two options are available in both microeconomics and macroeconomics. The standard intermediate courses are ECON 121 and 122. Students with a stronger mathematics background are encouraged to take ECON 125 and 126 instead. The intermediate courses need not be taken in sequence: in particular, ECON 125 is not required for 126.

Field courses   The department offers a wide selection of upper-level courses that explore in greater detail material presented in introductory courses. Advanced fields of economics include theoretical, quantitative, and mathematical economics; market organization; human resources; finance; international and development economics; public policy and the public sector; and economic history. Some advanced field courses have only introductory microeconomics as a prerequisite. Others apply intermediate-level theory or econometrics to economic problems and institutions, and for this reason list one or more of the theory or econometrics courses as prerequisites.

Advanced lecture courses   Courses numbered ECON 400–449 are limited-enrollment courses that cover relatively advanced material in more depth than regular field courses. Prerequisites usually include two of intermediate microeconomics, intermediate macroeconomics, and econometrics or a mathematics course such as MATH 120. Advanced lecture courses may be applied toward the senior requirement.

Seminars   Although there is diversity in approaches in the various seminars (courses numbered ECON 450–489), all have in common an emphasis on class interaction, the writing of papers, and the reading of journal articles. Seminars represent an opportunity for students to apply and extend the economics they have learned through their earlier coursework.

Enrollment in seminars and advanced lecture courses is limited. Senior Economics majors who have not yet completed the senior requirement for the major are given priority for these courses and may preregister; see the Economics department Web site for instructions. Students must take two of three core courses in intermediate microeconomics, intermediate macroeconomics, and econometrics before enrolling in a seminar. Underclassmen in the major and nonmajors may also enroll in Economics seminars and advanced lecture courses as space permits, but they do not preregister.

Senior requirement   Majors are required to take two departmental courses numbered ECON 400–491, at least one of which must be taken in the senior year. The senior requirement must be met by Yale Economics courses; courses in other departments or taken elsewhere do not suffice. Residential college seminars do not count toward the major.

Senior essay   Only those majors who submit a senior essay are eligible for Distinction in the Major. There are three types of senior essay: (1) students may write a one-term essay in an advanced departmental course (numbered 400–489) taken during the senior year; (2) students may write a one-term essay in the fall of the senior year as an independent project on a topic of their own design under the close and regular supervision of a faculty adviser (ECON 491); or (3) students may write a two-term essay starting in the fall of the senior year as an independent project on a topic of their own design under the close and regular supervision of a faculty adviser (ECON 491 and 492). Meetings to discuss the senior essay will be held at the beginning of the fall term; see below under "Distinction in the Major."

Distinction in the Major   To be considered for Distinction, students must meet the appropriate grade standards (see under Honors in the Undergraduate Curriculum section) and submit a senior essay to the Economics department by the end of the next-to-last week of classes in the spring term. Students who fail to submit such a paper will not be considered for Distinction in the Major. Note that the paper must be written during the senior year and that students may submit a senior essay only if they have an approved prospectus and a senior essay adviser. Senior essays that are not submitted on time will receive a grade of Incomplete. Senior essays with grades of Incomplete without permission of the residential college dean are subject to grade penalties when submitted. Grade computation for Distinction does not include the introductory economics courses, the required mathematics course, related-credit courses, or courses taken outside Yale. Meetings for seniors to discuss the senior essay will be held on Wednesday, August 29, at 4:30 p.m. and Thursday, August 30, at 1:30 p.m. in Room 106, 28 Hillhouse Avenue. Details regarding calculations for Distinction in the Major will be discussed in these meetings, and senior essay guidelines will be distributed. Senior essay prospectus forms are due Monday, October 1, 2012.

Graduate courses   Well-qualified students who have acquired the requisite background in undergraduate courses may, with written permission of the instructor, the director of undergraduate studies, and the director of graduate studies, be admitted to graduate courses and seminars.

Students who are planning graduate work in economics should take additional mathematics courses beyond the one-term course required for the major. Many graduate programs in economics require courses in multivariate calculus and linear algebra. Students are urged to discuss their plans for graduate work with the director of undergraduate studies as early in their college careers as possible.

Combined B.A./M.A. program   Students interested in the B.A./M.A. program in Economics may submit a preliminary application in the fall of their junior year to the directors of undergraduate and graduate studies. Admission to this program is limited to students who have achieved A grades in at least two-thirds of all of their undergraduate courses and have also achieved A grades in all courses relating to the major. Applicants must have taken MATH 120 and 222 or equivalent. If granted permission, applicants take two of the following three graduate courses: ECON 500, 510, and 550. Only students who earn a grade of at least A– in each course will be considered for candidacy in the B.A./M.A. program. Applications are forwarded to a joint committee of Yale College and the Graduate School. This committee makes the final decision on admission of students to the program. It is not possible to enter the B.A./M.A. program except in the fall of the junior year. If admitted to the program, a student completes eight term courses of graduate work in the junior and senior years; these eight courses must be economics courses designed primarily for Ph.D. students (courses in the International and Development Economics program do not count toward this requirement). The eight graduate courses include the two required for candidacy in the program as well as two chosen from the six core courses in the graduate sequence of microeconomics, macroeconomics, and econometrics. In addition, the student must complete the two-term senior departmental essay by enrollment in ECON 491 and 492. All students in the program must complete ECON 132 or 136 or a graduate course in econometrics. It is recommended that students complete the distributional requirements before the senior year. Appropriate graduate theory courses may be substituted for the core Economics courses 121 and 122 as well as the one-term econometrics course required of majors. The eight graduate courses must not be entirely concentrated in the final two terms, and students in the program must take at least six term courses outside the major during their last four terms at Yale and at least two undergraduate courses during their last two terms. Course schedules must be approved each term by both the director of undergraduate studies in Economics and the director of graduate studies in Economics. To receive the M.A. as well as the B.A. at the end of the senior year, the student must receive two terms of A in the graduate courses, an average of B in the remaining graduate courses, and a reader's grade of B+ or higher on the senior essay.

Students interested in this program should see the director of undergraduate studies before or during registration for the first term of the junior year.

Faculty representatives   The Economics department has faculty representatives associated with each residential college. Students majoring in Economics should secure written approval of their course selection from one of their college representatives. Changes in their major program must be approved by a representative. Questions concerning the major or programs of study should be directed to a college representative. For 2012–2013 the college representatives are as follows:

REQUIREMENTS OF THE MAJOR

Prerequisites   None

Number of courses   12 term courses (incl senior req)

Distribution of courses   1 intro course in microeconomics, 1 in macroeconomics (or equivalents with DUS permission); 1 math course, as specified

Specific courses required   ECON 121 or 125; 122 or 126; 131, 132, or 136

Substitution permitted   1 related course in another dept, as specified

Senior requirement   2 courses numbered ECON 400–491, at least 1 in senior year