A. Core Courses
16-220:500 MATHEMATICAL METHODS FOR MICROECONOMICS
Prerequisite: Calculus and Linear Algebra
Basic mathematical tools for consumer and producer theory. Topics include compact sets, differentiability, convex sets, separation theorems, constrained optimization and the Kuhn-Tucker theorem, applications in consumer and producer theory.
16-220:501 MICROECONOMIC THEORY I
Prerequisite: 16-220:500 or permission of instructor
General equilibrium theory; the Arrow-Debreu model, decision making under uncertainty; the Von-Neumann Morgenstern theory, risk aversion, applications to insurance problems and portfolio choice, applications to competitive equilibrium with uncertainty.
16-220:502 MICROECONOMIC THEORY II
Introduction to the theory of games and related economic models with informational asymmetries. Topics include non-cooperative games and models of moral hazard and adverse selection.
16-220:503 MATHEMATICAL METHODS FOR MACROECONOMICS
Prerequisite:Calculus and Linear Algebra
Basic mathematical tools for dynamic economic models. Topics include linear algebra from echelon form to projection operators, quadratic forms, linear difference and differential equations, dynamic programming and control theory, applications to dynamic models of macroeconomics, growth and human capital.
16-220:504 MACROECONOMIC THEORY I
Prerequisite: 16-220:503 or permission of instructor
Introduction to economic dynamics, economic growth, business cycles, and the role of macroeconomic policy.
16-220:505 MACROECONOMIC THEORY II
General equilibrium modeling of the macroeconomy. Topics will include the stochastic growth model and multiple equilibrium. Empirical validation will also be stressed.
16-220:506 ADVANCED ECONOMIC STATISTICS
Prerequisite:Calculus and Linear Algebra
The purpose of the course is to build a sound background in statistical inferential procedures that are used in economic data analyses. Sampling theory and Bayesian viewpoints will be presented. Topics include probability, random variables and distributions, estimation, testing hypotheses, and sampling distribution of estimators. Knowledge of elementary integral and differential calculus is prerequisite to the course.
16-220:507 ECONOMETRICS I
Prerequisite: 16-220:506 or equivalent
Statistical estimation and inference of regression equation models. Properties of OLS, GLS, JGLS, 2SLS, 3SLS, and Maximum Likelihood Estimators. Introduction to time series analysis and qualitative response models. Use of linear algebra and statistical packages. The emphasis of the course is on theory via practical applications.
16-220:508 ECONOMETRICS II
Time series analysis, focusing on estimation, inference and validatioin. Specifications examined inlclude (vector autoregressive) models and a variety of nonlinear models including GARCH. Estimation techniques examined include maxiumum likelihood, generalized methods of moments (GMM) and various other techniques such as simulated GMM. Infrence techniques examined include standard asymptotics, unit root asymptotics and bootstrapping. Additional topics include Monete Carlo methods, predictive accuracy testing, model selectiion, uonit roots and cointegration; as well as topics in financial and macroeconometrics.
16-220:509 APPLIED ECONOMETRICS FOR MICROECONOMICS
Prerequisite:16-220:507 or permission of instructor
Econometric tools for microeconomic models are discussed relying on recent applied econometric papers. Tools include qualitative choice models, survival analysis, and advanced regression methods (e.g., panel data techniques and limited dependent variables).
16-220:510 APPLIED ECONOMETRICS FOR MACROECONOMICS
Prerequisite: 16-220:507 or permission of instructor
Econometric tools for macroeconometric time series models. Topics include exogeneity tests, spectral analysis, non-stationarity, the Kalman filter, structural shifts, prediction, nonlinear models and nonparametrics. Recent macroeconomic time series papers are discussed.
B. Field Courses
16-220:513 MONETARY THEORY
Traditional treatment of monetary theory and policy. Topics include: the origins of money, money demand, money supply, Keynesian, Classical and New Classical models, money and inflation, money and output, monetary policy, rules versus discretion and monetary standards.
16-220:514 STRUCTURE OF THE FINANCIAL SYSTEM
Current research topics in financial economics: The Capital Asset Pricing Model (CAPM), the Consumption CAPM, the Term-Structure of Interest Rates, the empirical relation of asset prices to economic fundamentals, volatility, event studies in finance and economics, regulation of financial markets, the stock market crash of October l987 and other topics.
16-220:515 PUBLIC ECONOMICS I
Welfare theory, collective action, externalities, public goods, benefit-cost analysis, social welfare programs, social insurance.
16-220:516 PUBLIC ECONOMICS II
Tax policy analysis. Topics include optimal taxation, tax incidence analysis, the efficiency costs of taxation, and the measurement of the effects of taxation on economic behavior.
16-220:517 THE ECONOMICS OF THE STATE AND LOCAL PUBLIC SECTOR
Examination of the economics of state and local government, applying the principles of public economics to the analysis of state and local revenue and expenditure decisions; fiscal federalism; intergovernmental grants; zoning and land use controls; and capitalization. Examination of the empirical evidence on these issues. Additional topics may include analysis of housing, transportation, public finance, public education, interjurisdictional migration and regional growth.
16-220:518 INTERNATIONAL ECONOMICS I
Major areas of trade theory are presented including comparative advantage theory, general equilibrium-factor endowments trade theory, and commercial policy. Recent developments such as imperfect competition and uncertainty models of international trade theory are included.
16-220:519 INTERNATIONAL ECONOMICS II
Analysis of advanced topics in the area of international finance, international monetary economics and open economy macroeconomics. Topics may include: International business cycles; international financial markets; current account and fiscal policy; sovereign debt; exchange rate regimes; speculative attacks; international policy coordination; growth in the international economy.
16-220:520 ECONOMICS OF THE LABOR MARKET
Labor supply (static and dynamic models and empirical analyses). Labor demand. Wage differentials and unemployment. Applications to policy problems: economics of welfare system, and low-income labor markets.
16-220:521 ECONOMICS OF HUMAN RESOURCES
Theory of human capital, with applications to the economics of education, migration, and other topics. Distribution of earnings, race and sex discrimination. Economics of the family and population economics. Role of uncertainty and imperfect information in the labor market. Compensation schemes and employment contracts. Bargaining and strikes.
16-220:522 INDUSTRIAL ORGANIZATION I
Models of imperfect competition. Applications to price discrimination, vertical integration, product quality, advertising, and research and development. Strategic models of entry deterrence and contracting. Implications for antitrust policy. Empirical research on industry structure, conduct, and performance.
16-220:523 INDUSTRIAL ORGANIZATION II
Natural monopoly and rate of return regulation. Optimal pricing including Ramsey, nonlinear, and peak-load pricing. Regulation models with uncertainty or asymmetric information. Optimal contracting and auditing. Price regulation. Regulation of entry and product quality. Regulation of price, entry, product quality, health, safety and the environment. Empirical research on performance in regulated industries.
16-220:525 Economic Systems
Analysis of differing economic systems with emphasis on plan/market comparisons, performance, economic reform, and contemporary issues of transition.
16-220:526 Economic Development I
Problems of resource allocation for promoting economic growth and structural change in the context of poverty and inequality.
16-220:527 Economic Development II
Selected topics in contemporary development economics.
16-220:540 EUROPEAN ECONOMIC HISTORY
The growth of Europe from the sixteenth century to the present. Topics include mercantilism; industrialization, the standard of living debate; international economic integration in the nineteenth century; the gold standard, the Great Depression, the economics of war and peace, and the EC.
16-220:541 AMERICAN ECONOMIC HISTORY
The development of the American economy from colonial times to the present. Topics that will receive particular attention include industrialization, agriculture, slavery, monetary and financial developments, the Great Depression, and postwar growth.
Selected problems in economic analysis of uncertainty and imperfect information. Emphasis on applications in micro- and macroeconomics.
Introduction to non-cooperative and cooperative game theory that are relevant to economic problems.
Problems in aggregating individuals' preferences for making collective decisions. Game-theoretic analysis of voting mechanisms. Selected applications.
Topics chosen by instructor. May include theory of optimal control, general equilibrium, natural resources, etc.
Introduction to analysis by experimental methods of selected problems in economic theory, focusing on theory of individual choice under uncertainty and game theory, as well as bargaining theory, industrial organization, social choice theory, and financial markets.
Statistical inference in econometrics from Bayesian and non Bayesian points of view. Special topics of current interest are covered including inference on structural shifts, model selection, Kalman-filter models and duration dependent models.
Advanced topics in monetary theory covering both micro and macro aspects of the field.
Advanced topics with emphasis on the current controversies in the field.
Special topics in labor economics, varying from year to year. Past topics have been: economics of transfer programs, economics of health, economics of fertility. Students are expected to complete a project for the course and to present a seminar on its results at the end of the semester.
Course varies in content depending upon faculty and student interests. Generally, special attention is paid to current topics which will stimulate student dissertation research.
Analysis of selected topics relating to the comparisons of planned and market economic systems and related issues of transition. Research paper required.
Advanced topics in development economics emphasizing skills of modelling and estimation.
Research in microeconomic theory. Papers by students, faculty, and visiting scholars on topics selected by the seminar participants.
Consists of two parts: (i) Several lectures reviewing topics and controversies at the frontier of macroeconomics, presented by instructor and discussed by class; (ii) papers on current topics, presented by students and discussed by instructor and other students. Emphasis on development and analytical skills and use of empirical and theoretical tools. Topics to be considered will be mutually agreed upon, and could include (but need not be limited to) the following: causality in macroeconometric models, testing asset pricing models and cointegration.
Application of econometric methods for estimation of parameters in an economic relationship as may be specified in a micro/macro generally interdependent simultaneous system model involving use of a body of data cross section and/or time series.
Selected topics in recent research in economic history.