HTML> ECON 110.02 Introduction to Economic Theory Syllabus

Economics 110, Section 2: Introduction to Economic Theory

Professor Christiaan Hogendorn
Spring 2011

Syllabus

SW = Joseph Stiglitz and Carl Walsh, Economics, 4th Edition, Norton, 2006, or 3rd Edition.
Chapter numbers are from 4th edition, with 3rd edition in [brackets].
Items marked with # are not yet available.

Course Policies and Grading

I. Introduction
Jan. 20 Th 1. A Brief History of Economics
SW: 1 [1]
Review: SW: 2 Appendix [2 Appendix]
Jan. 25 T 2. Money, Inflation, and "Why is Economics the Dark Side?"
SW: 28 pp. 615-620 [25 pp. 518-523]
SW: 23 all [23 pp. 472-479]
BLS Consumer Price Index Data

II. Economic Policy Using Supply and Demand
Jan. 27 Th Class Canceled -- University Closed
Feb. 1 T 3. Markets for Goods and Services
SW: 3 [4]
EIA Petroleum Data
Feb. 3 Th Class Canceled
Feb. 8 T 4. Analysis in the Supply and Demand Model
SW: 4 [5]
Feb. 10 Th 5. Consumer and Producer Surplus
SW: 10 [10] read up to General Equilibrium
Feb. 15 T 6. Price Controls and Taxes
Tax Rates
Feb. 17 Th 7. International Trade
SW: 19 [18]
Feb. 22 T 8. Externalities and the Environment
SW: 18 [21]

III. Firms
Feb. 24 Th 9. The Nature and Value of a Firm
SW: 9 [9]
March 1 T FIRST MIDTERM
Covers classes 1-7, problems sets 1-4.
March 3 Th 10. Production and Costs
SW: 6 [7]
SPRING BREAK
March 22 T 11. The Perfectly Competitive Firm
SW: 7 [8]
March 24 Th 12. The Imperfectly Competitive Firm
SW: 12 [12]
March 29 T 13. The Labor Market
SW: 8 [9]
March 29 T 14. The Capital Market and the Real Interest Rate
SW: 39 [17]
March 31 Th 15. Imperfect Factor Markets
SW: 16 [15]

IV. Introduction to Macroeconomics
April 5 T 16. Introduction to Macroeconomic Models
SW: 21, 22 [22, 23]
SW: 24 [24]
BEA GDP Data
Nationmaster GDP Data
April 7 Th 17. Savings, Investment, Government
SW: 25, 26 [26]
IMF Savings and Investment Data
April 12 T SECOND MIDTERM EXAM
Covers classes 8-13, problem sets 5-6.
April 14 Th 18. Growth
SW: 27 [27]
Eswar Prasad, Raghuram Rajan, and Arvind Subramanian, "The Paradox of Capital," Finance and Development, 44(1), March 2007.
BLS Productivity Data
Background: Dani Rodrik, "Making Room for China in the World Economy," American Economic Review, 2010.
April 19 T 19. Central Banks
SW: 28 pp. 618-632 [25 pp. 518-528]
Phil Davies, "Right on Target: A behind-the-scenes look at open market operations, the Fed's big stick of monetary policy," The Region, December 2004: 39-48.
Background: Interview with Gary Gorton, Yale University finance economist on the growth and collapse of shadow banking, The Region, December 2010.

V. Fluctuations
April 21 Th 20. Money and the Real Economy
SW: 28 and 34 [25 and 34]
Federal Reserve Money Supply Data
Niel Willardson, "Actions to Restore Financial Stability," The Region, Federal Reserve Bank of Minneapolis, December 2008.
April 26 T 21. Unemployment and Business Cycles
SW: 29 [28]
NBER Business Cycles
BLS Unemployment Data
April 28 Th 22. Aggregate Demand and Inflation
SW: 31 [30]
May 3 T 23. Inflation and Unemployment
SW: 37 [31]

May 5 Th 24. Household Choices Revisited
SW: 5 Appendix [6 Appendix]

May 10 T Review Session
2:00-3:30pm

May 12 Th FINAL EXAM
9:00AM - 12:00 noon