Economics

Overview

The economics curriculum at St. Olaf combines theory, application, institutional study, and quantitative analysis. Where appropriate, economics courses also include historical background, international context, and ethical concerns.

The economics major provides a solid foundation for students who wish to pursue graduate studies in many fields, especially economics, business, public policy, and law. The major also serves as excellent preparation for a wide variety of careers, including banking, accounting, health administration, finance, business management, teaching, and international affairs.

The department offers Areas of Emphasis for students desiring more focused study in accounting, finance, health care administration, international economic analysis and policy, management, policy analysis, and quantitative methods. The Husby-Johnson Chair in Business and Economics links the department to Minnesota's business and economic policy-making communities. The Finstad Center for Entrepreneurial Studies offers courses in entrepreneurship and facilitates student placement in internships.

General Education Credit

Distribution Credit

Prerequisites

Requirements for the Major

Economics majors should have a working knowledge of a statistical computing package and other computing software such as an electronic spreadsheet.

Areas of Emphasis

Only one Area of Emphasis will be certified by the department. Areas of Emphasis include Policy Analysis, International Economic Analysis and Policy, Quantitative Methods, Health Care Administration, Accounting, Finances and Management. The last four areas require Economics 237 (Managerial Accounting) as one of the three subject courses. Students may also obtain a concentration in statistics by completing Statistics 263, Math 262, Math 312, and Economics 385.

Students considering graduate work in economics are advised to take additional courses in economic analysis (including Economics 385) and mathematics (Mathematics 126 or 128, 220 or 222, 226 or 228, and 244).

Special Programs

Courses

Introductory Courses

110 Gateways to Economics

These are small-enrollment classes that introduce students to the core of economics through special topics. Each course is organized around a specific theme; the themes will vary by instructor, capitalizing on the special interests and expertise of the faculty involved, and on timely issues in contemporary society. These courses emphasize the application of essential economic concepts to topics with broad societal appeal. They provide the necessary foundation for subsequent work in economics. A list of special topics and course descriptions will be included with registration materials. Open only to first-year students.

121 Principles of Economics

Principles of economics takes an analytical approach to understanding current economic issues. This course applies micro-economic and macroeconomic theories to gain critical insights into some of the most relevant concerns of our day, such as income distribution, environmental protection, affirmative action, the national debt, exchange rate fluctuations, taxes, and welfare reform. The class emphasizes the use of economics as an intellectual approach in understanding our daily lives as citizens, workers, managers, and consumers.

221 Analytical Principles of Economics

This course covers much the same material as Economics 121, but employs analytic geometry, set theory, calculus, and computer software to portray economic perspectives. Prerequisite: Mathematics 119 or 120 or 122.

233 Economic Methods

Economic models are the "tools of the trade" for economists, and this course develops skill in using models to solve economic problems. The course also reviews math skills, since economic models utilize mathematical notation or employ mathematical optimization techniques. It is designed to prepare students with limited mathematical aptitude for the core courses: Economics 261, 262, and Statistics 263. The course substitutes for the second required math course if taken prior to the core courses. Otherwise it does not count toward the major. Prerequisites: One of Economics 110-121, and Math 110 or 120 or 122. Offered both semesters.

Core Courses

261 Intermediate Macroeconomic Theory

This course addresses the economic institutions and forces that determine levels of income, output, employment (or unemployment) and prices in our society. Questions related to employment prospects (for ourselves and others,) and our standard of living provide an important focus. Classical and Keynesian perspectives are employed in attempting to understand these matters, the problems that sometimes prevail in market economies, and the policies that economists prescribe as remedies for these problems. Prerequisite: Mathematics 119 or 120 or 122. Recommended: One of Economics 110-125, 221, or consent of instructor.

262 Intermediate Microeconomic Theory

Microeconomics is the study of how people, individually and in small groups, make choices in the face of scarcity. The people studied may be individual consumers or workers, members of households, managers of businesses, or bureaucrats. In this course, students learn the basic theoretical models economists use to analyze and describe the behavior of these individuals and groups. We apply these models to a wide range of situations and examine their outcomes with regard to the allocation of resources, wealth, and products. Prerequisites: Mathematics 119, 120, or 122 and one of Economics 110-125 or 221 or consent of the instructor.

Statistics 263 Statistical Problem Solving

Statistical Problem Solving gives students the skills necessary to understand and analyze the data from our information dependent society. We begin with descriptive statistics, probability, and random variables. We then study sampling theory, estimation, and classical hypothesis testing. Finally, we develop a rigorous, practical and theoretical understanding of simple and multiple regression analysis and use it to solve economics and business problems. We emphasize the use of real data and realistic applications using sophisticated programs such as Minitab for Windows. Written reports are used to link statistical theory and practice to the communication of problem solving. Prerequisite: Mathematics 119 or 120 or 122.

389 Senior Project

All senior economics majors complete an independent research project. Students in this course organize a project, conduct research, and write a report on findings and their significance. The project should employ economic and business research techniques in support of a thesis or policy proposal. Prerequisites: Economics 261, 262, and Statistics 263 or Mathematics 312. Economics 389 must be completed during the term in which the student is registered for this course. Credit for the senior project may not be earned during a term in which the student is on an off-campus program or away from St. Olaf earning credits at another college.

Economic Analysis Courses

238 Economic Development in Japan

This course provides an overview and analysis of Japan's economic development beginning with review of the foundations for growth in the 19th century and focusing on the era of rapid growth in the post WWII period. Students investigate the interaction of culture and the economy, Japan's corporate capitalism, the "economic miracle," Japan-U.S. relations, and prospects for future growth. Prerequisite: One of Economics 110-125, 221 or consent of instructor.

240 Economics and Law

Legal rules and institutions influence behavior. By setting acceptable levels of pollution, structuring guidelines for contract negotiations, deciding who should pay for an accident (and how much), and determining punishment for crimes, legislatures and courts create incentives. How do economic considerations factor into legal rules, and how do laws affect economic output and distribution? In this class, we use court cases, experiments and current legal controversies to explore such issues. Prerequisite: One of Economics 110 221, or consent of instructor.

241 Energy Economics

Students explore the application of the economics of natural resources to the energy field: production and distribution and conservation. This course includes consideration of both traditional and renewable energy forms, evaluation of energy policies, and the projection of energy futures. Prerequisite: One of Economics 110-125, 221, or consent of instructor.

242 Environmental Economics

The powerful insights of microeconomic analysis inform this consideration of environmental policy and regulation. Coursework emphasizes issues germane to setting specific environmental objectives -- how much pollution should be allowed, how much preservation should be encouraged, how much forest should be cleared -- and how these objectives are best attained. An important question considered throughout the course is whether and how to assign monetary values to goods, like species diversity and climatic stability, which have no recognized, market-determined price. Students gain practical experience applying benefit-cost analysis to environmental decisions. Prerequisite: One of Economics 110-125, or consent of instructor.

243 Economic Development

Most of the people in the world live in economic circumstances far different than those enjoyed by a majority of the industrialized countries' populations. Students in this course learn and apply economic analysis, tempered by an appreciation for the political and institutional contexts of the less developed countries, to gain an understanding of these countries' economies. We use cases involving both written and oral analysis to explore topics such as economic growth in Brazil, trade strategies in Singapore, poverty and income distribution in Taiwan, or macroeconomic performance in Mexico. Prerequisite: One of Economics 110-125, 221, or consent of instructor.

244 Business, Government, and the Marketplace

When government extends its hand into the market we call it "regulation." Students in this course will gain a critical understanding of several forms of government regulation by studying antitrust, old-style regulation, and issues in consumer and workplace safety. We examine these areas of intervention from both historical and economic perspectives with an emphasis on legal developments and their economic implications. Students participate in oral and written cases arguing opposing sides on historical and modern issues ranging from Standard Oil 1911) to the regulation of nuclear power. Prerequisite: One of Economics 100-125, 221, or consent of the instructor.

245 Economics of Health Care

The rapid and relentless growth in health care expenditures and the health care sector of the U.S. economy has disturbing implications for persons or firms paying health insurance premiums and for all of us as taxpayers. The course looks at broad issues in health and health care from the perspective of an outside discipline. Economic principles and simple economic models provide interesting insights into the current crises. Students from nursing, biology, and pre-med are encouraged to enroll. Prerequisite: One of Economics 110-125, 221 or consent of instructor.

247 History of Economic Thought

Many aspects of our lives and our society are influenced by the ideas (or the theories) of economists. The object of this course is to see where these ideas have come from, how they have changed over time, and the extent to which they are compelling. While the ideas of many important figures are covered, economists such as Smith, Ricardo, Marx, Marshall and Keynes receive particular attention. Prerequisite: One of Economics 110-125, 221, or consent of instructor.

249 Urban Economics

This class applies economic principles to issues of urban development. Topics include urban economic history, location analysis, policy analysis (especially concerning poverty, housing, transportation, and education), land use controls, and macroeconomic forecasting. Prerequisite: One of Economics 110-125, 221, or consent of instructor.

371 Economics of Public Policy

Government action affects us all. We pay taxes; we use public roads, schools, and parks. Some prices we pay are lower due to government subsidies; others are higher due to taxes. All of these government actions have implications for the efficiency of our economy and for equity and equality within our society. This course equips students to evaluate the many ways government affects our lives and welfare. Students learn valuable analytical tools and apply them to evaluating public projects, tax policies, entitlement programs, and voting behavior. Prerequisite: Economics 262 or consent of instructor.

374 Money and Banking

This course addresses the institutions that comprise modern monetary systems and the influence that these systems have on levels of income, output, employment and prices in market economies. Monetary theory and monetary policy, including both the nature of our central bank and the role that it plays in our monetary system, are also addressed in some detail. Prerequisite: Economics 261 and Statistics 263 or Mathematics 312, or consent of instructor.

376 Labor Economics and Employment Relations

What do you want from work? What do employers want from you? Increasing pressures in the international marketplace create both problems and opportunities for workers. The winners possess the skills demanded by firms. Pressing policy issues exist for those left behind: unions, unemployment insurance, welfare, and the minimum wage enhance the prospects of some, while leaving others even worse off. This course utilizes microeconomic theory, statistics, and institutional analysis to understand labor markets. Prerequisites: Economics 262 and Statistics 263 or Mathematics 312, or consent of instructor.

382 International Economics

International trade and investment are increasingly important to the U.S. economy. Our industries, commerce, technology, standard of living, and all the other facets of economy are related to the economies of foreign nations by complex flows of goods, capital, technology, and services. This course offers the students an integrated approach of theory, policy, and enterprise in international trade and investment. The course provides an understanding of the costs and benefits of global economic interdependence for students who plan to enter an international business career or work for government and international organizations in activities that relate to international economic relations. Prerequisite: Economics 261 or 262, or consent of instructor.

385 Introduction to Econometrics

Ideal for students interested in sophisticated applications of mathematical and statistical models in graduate study and/or professional careers, this course emphasizes theoretical foundations, mathematical structure, and applications of major econometric techniques including; ordinary least squares, generalized least squares, dummy variables, non-linear transformations, instrumental variables, simultaneous equation modeling (including two and three stage least squares) and time series models. Emphasis is placed on computer-based case projects using extensive national data series and a sophisticated econometric modeling system. The course capstone is the development of an econometric model of the national economy. This course can be included in the Statistics Concentration. Prerequisites: Economic 261, and Statistics 263 or Mathematics 312 or permission of instructor.

Management Courses

236 Management Information Systems

This course examines management information systems (MIS) in business, government, and other institutions, including concepts of information, the use of information in decision-making, human beings as information processors, decision-making concepts, as well as the organization, structure, and management of information systems. Students consider the role of computers, electronic information, and communication as well as the design, development, and management of information systems and their role as business resources. Prerequisite: One of Economics 110-125, 221, or consent of instructor.

250 Marketing

This course introduces the key elements of marketing strategy; product development and management, pricing, promotion, and distribution decisions. Case analysis and simulation exercises will provide opportunities for applying concepts addressed in class. Upon completion of the course, students should be able to write a marketing plan if they are assigned this responsibility in their future career. Prerequisite: One of Economics 110-125, 221, or consent of instructor.

251 Management

The purpose of this course is to familiarize the student with the major management functions of planning, organizing, leading and controlling. The study of management theory will be linked with application exercises to be completed individually or in groups. Students will begin to develop the management skills necessary in any type of organization, whether it be a for-profit or not-for-profit venture, a small business or a large corporation. Prerequisite: One of Economics 110-125, 221, or consent of instructor.

252 Legal Aspects of Business

This course examines the legal framework in which business enterprise is conducted, including personal rights and duties, contracts, sales, agency, negotiable personal rights and duties, negotiable instruments, bailments, personal property and corporate obligations, and equities. Prerequisite: One of Economics 110-125, or consent of instructor; junior or senior status.

255 Entrepreneurship

This course examines the importance of entrepreneurship to the college student and subsequent graduate, covering both theories and practical aspects of the subject. Discussions focus on the paradigms of creativity and innovation, the relationship of liberal arts disciplines to the entrepreneur, the role of the entrepreneur in society and history, the risks and rewards of entrepreneurship, and the elements of entrepreneurial behavior in a variety of settings. Study concentrates on the entrepreneurial process from idea creation to ultimate business or other organizational activity.

383 Management Policy and Strategy

This is the capstone course for those students with a management area of emphasis. Students will have the opportunity to further develop their planning and decision making skills through focused study of the management literature and case analysis exercises. Emphasis is given to identifying, analyzing, and solving organizational problems which are strategic in nature and cut across all functional areas of the organization. Prerequisite: Economics 250 or 251, junior or senior status.

Accounting/Finance Courses

225 Principles of Accounting

Napoleon said "The right information at the right time is nine tenths of any battle." This course emphasizes the use of accounting information to make investment and credit decisions. It involves the selection and observation of relevant variables, their measurement, the analysis and processing of related data, and disclosure of information that is useful to decision-makers. Students use basic financial statements such as the income statement, balance sheet and statement of cash flows to assess the results of operations and the financial position of an economic entity. Offered both semesters.

237 Managerial and Cost Accounting

This course emphasizes the use of financial information to make management decisions. Some of the topics include appropriate cost measurement and allocation, break-even analysis, budgeting and control, capital expenditures analysis, and performance evaluation. Students are introduced to the modern production environment. Computer spreadsheets and case studies are used extensively. This course is required for students who plan to sit for the C.P.A. or C.M.A. Examinations and for those seeking an Area of Emphasis in Management, Accounting, Health Care Administration, or Finance. Offered both semesters. Prerequisite: Economics 225.

252 Legal Aspects of Business

See description under Management courses

258 Tax Accounting

Students examine the technical aspects of the United States tax law and regulations as it affects individuals including sole proprietors. The course has special emphasis on tax research, compliance, and planning. Prerequisite: Economics 225.

259 Intermediate Accounting Theory

This course investigates the accounting principles used to value assets and liabilities and measure revenue and expenses. It emphasizes the effect of alternative accounting methods on the financial statements and highlights the need for financial reporting standards. Case studies illustrate real world implications of the ideas presented in class. Students are introduced to a basic computer accounting system. This course is required for students who plan to sit for the C.P.A. or C.M.A. Examinations and is required for those seeking an accounting area of emphasis. Offered Fall Semester only. Prerequisite: Economics 225.

281 Corporate Finance

This course is an introduction to financial decision-making in a business environment. Topics include asset acquisition, issuance of stock vs. debt, dividend policy, planning and analysis, and working capital policy. Case discussions, combined with lectures and readings, enable students to apply finance principles in actual business situations. The course provides experience in defining problems, finding alternatives, analyzing, and making decisions. Computer spreadsheets are also used. This course is offered only during the Spring Semester. Prerequisite: Economics 225.

377 Intermediate Accounting II

This course extends the investigation of accounting principles to equity transactions and complex special topics such as accounting for pensions, leases and income taxes. It includes discussion of topics that are currently unsettled and explores the procedures that the accounting profession uses to establish new accounting principles. Case studies are used extensively to illustrate the concepts presented in the class. This course is required for students who plan to sit for the C.P.A. or C.M.A. Examinations. Offered alternate years during Spring Semester. Prerequisite: Economics 259.

380 Investments

This course is an introduction to making personal investment decisions and provides a foundation for students seeking a career in the investment field. Although stocks and mutual funds are the primary focus, bonds, options and futures are also introduced. Topics include risk and return, security analysis, valuation theory, and portfolio management. Students have the opportunity to analyze historical data using a computer database and spreadsheet, and make investment decisions. The course is offered only during the Fall Semester. Prerequisites: Economics 225 and a statistics course.

Other Courses

298 Independent Study

394 Internship

398 Independent Research

399 Seminar

Selected topics to be announced.

Economics 113

Capitalism: The Struggle of Economic Ideas in History

Economics 218

Economic Progress in China

Economics 229

Arts Management

Economics 230

Computer Applications

Economics 231

Personal Finance

Paracollege Seminars

Economics, Ethics, and Issues

The Road to Xanadu

Faculty