Charles K. Wilber

Office hours (Hesburgh Center 317):

W 2-4pm and Th 9-11am or by appt.

Phone: 631-5168

E-mail: wilber.1@nd.edu

http://www.nd.edu:80/~cwilber/econ504/econ504.html

TEXTBOOKS:

Kenneth P. Jameson, Economics and Community and assorted readings as course packet [CP]. Available in La Fortune copy center.

NATURE OF THE COURSE:

This is a course for graduate students in History, Government, Law, Peace Studies, Philosophy, Sociology, and Theology. It is an intensive study of micro and macro economic theory with applications to public finance, international trade, theories of justice, economic history, peace economics and other areas as required by the interests of students.

The purpose of this course is to enable students to use the basic concepts and analytical methods of economics in analyzing policy issues. The student's primary responsibilities are to attend the lectures, to read the books, think about them, and using the lectures and books, to participate actively and intelligently in class discussions. Consequently, the student will get out of the course just about what he or she puts into it.

COURSE REQUIREMENTS:

1. There will be two exams-- a mid-term (200 points) and a final (300 points).

2. There will be two reaction papers of 2-3 pages each applying economic theory (the first using microeconomics and the second using macroeconomics) to some current public policy as reflected in an article from the Wall Street Journal or New York Times. They will be graded 100, 90, or RE-DO. When re-done they will be marked 80 or zero. Due October 27 and November 24.

3. There will be a research paper of 8-12 pages (300points) analyzing an economic issue of interest to you. You must use the economic tools learned in this class and you must get the topic approved in advance. Due December 8.

READING LIST

I INTRODUCTION

Jameson, Chs. 1-2 [CP]

II MICROECONOMICS

A. The historical background:

Charles K. Wilber and Kenneth P. Jameson, Beyond Reaganomics (University of Notre Dame Press, 1990), Ch. 2: Free Enterprise and Laissez-Faire Economics. [CP]

B. The economic problem-- scarcity, choice, and opportunity costs:

Steven E. Rhoads, The Economist's View of the World (Cambridge University Press, 1985), Chs. 2-4 (pp. 11-58). [CP]

C. Supply and demand:

Jameson, Ch. 3 [CP]

D. Why economists disagree amongst themselves and with others:

Robert L. Heilbroner and James K. Galbraith, The Economic Problem, Revised Eighth Edition (Prentice-Hall, 1987), Ch. 9 (pp. 155-166). [CP]

Robert H. Frank, Thomas Gilovich, and Denis T. Regan, "Does Studying Economics Inhibit Cooperation?", Journal of Economic Perspectives, Vol. 7, No. 2 (Spring 1993), pp. 159-171. [CP]

E. The market system: theory and reality:

1. Introduction

Jameson, Ch. 4. [CP]

2. Market failure-- public goods

Michael R. Edgmand, et al, Economics and Contemporary Issues, Ch. 6: Crime and drugs. [CP]

3. Market failure-- externalities:

Joseph E. Stiglitz, Economics (Norton, 1993), Ch. 23, "Externalities, Merit Goods, Public Decision Making," pp. 586-610. [CP]

4. Intergenerational equity: The Social Security System

Laurence J. Kotlikoff and Jeffrey Sachs, "Privatizing Social Security: It's High Time to Privatize," The Brookings Review (Summer 1997), pp. 16, 18, 20, 22. [CP]

Henry J, Aaron, "Privatizing Social Security: A Bad Idea Whose Time Will Never Come," The Brookings Review (Summer 1997), pp. 17, 19, 21, 23. [CP]

5. Unequal opportunity and poverty

"The State of the Poor," Challenge (November/December 1996), pp. 43-45. [CP]

Brian Motley, "Inequality in the United States," FRBSF Economic Letter (January 31, 1997), pp. 1-3. [CP]

"Sharing Prosperity," Business Week (September 1, 1997), pp. 64-70. [CP]

Barry Bluestone, "The Inequality Express, The American Prospect (Winter 1995), pp. 81-93. [CP]

III MACROECONOMICS

A. Origins and development of macroeconomic theory and policy:

Wilber and Jameson, Beyond Reaganomics, Ch. 3: The Triumph of Keynesianism; Ch. 4: The Assault on the Keynesians: Free Enterprise Once Again [CP]

B. The basics: goals, measurement and performance:

Jameson, Ch. 6. [CP]

Clifford Cobb, Ted Halstead, and Jonathan Rowe, "If the GDP Is UP, Why Is America Down?," The Atlantic Monthly (October 1995), pp. 2-15.

C. Aggregate supply and dDemand:

Jameson, Ch. 7. [CP]

D. Macroeconomic schools and public policy:

Jameson, Ch. 8 [CP]

E. Contemporary macroeconomic issues: tax cuts and monetary policy:

Jameson, Ch. 9 [CP]

IV INTERNATIONAL ECONOMICS

A. Trade and finance in the new international economy:

Edgmund, et al, Ch. 15: "The United States and the World Economy," pp.395-419. [CP]

Dani Rodrik, "Sense and Nonsense in the Globalization Debate," Foreign Policy (Summer 1997), pp. 19-37. [CP]

B. From Communism to Capitalism?

Richard T. Gill, Economics: A Concise Micro/Macro Text (Bristlecone Books/Mayfield Pub., 1993), Ch. 28: "The Great Transition," pp. 554-73. [CP]

V Conclusion: social science, rhetoric and community

Jameson, Ch. 10. [CP]

Robert D. Putnam, "Bowling Alone: America's Declining Social Capital," Journal of Democracy, Vol. 6, No. 1 (January 1995), pp. 65-78. [CP]

The object of the papers are for you to demonstrate that you understand and can apply an economic concept that you have learned in this class, to an issue that you have read about in the public press.

1. The paper should be no longer than three typed double spaced pages. Edit and spell check your papers. Poorly written papers will be returned with a 0 to be redone. Include the clipped article with the paper.

2. Find an article in the New York Times, Wall Street Journal, The Economist, or Business Week on a topic that pertains to something covered in class to date. These topics could include helth care, the environment, poverty, housing, agriculture, or an article that you think describes a concept such as elasticity, shifts of demand or supply in a particular market and so on.

3. The paper should include three parts:

a. Briefly desribe the contents of the article-- do not rewrite the article, highlight the important points.

b. Identify and explain the economic concept(s) that you think are important in the article. You should base your explanation on the presentation of the concept in the textbook. The idea is to demonstrate that you understand the concept. Use your own simple examples to support your explanation.

c. Refer back to the article and demonstrate how the concept is illustrated by the article.

Example: You find an article that presents an interview with the president of an automobile company where the president is quoted as saying: "We have increased the price of our automobiles, but because we have such a reputation for high quality, we do not anticipate a drop in sales." You would highlight the key points of the article and then say, the president assumes that the demand for his/her company's automobiles is inelastic. Inelastic demand means...(use your textbook to explain the concept). A good is inelastic when...and maybe include your own simple example(s). Then go back and demonstrate how this concept underlies the president's statement.

Hint: Do not pick an article that has a long, complicated argument, or that deals with many difficult concepts. The simpler the better. There are many articles that pertain exactly to things studied in class.

Grading Scheme: 100 if you include everything stated above and all is correct; 90 if you make a few small mistakes in your analysis; 0 (to be redone) if you skip a part or your explanation of the concept is incorrect or misapplied. If you have to redo the paper, you have one week after they are returned to hand in the new version.

August 25: I

September 1: IIA, IIB

" 8: IIB, IIC

" 15: IIC, IID

" 22: IIE1, IIE2

" 29: IIE2, IIE3

October 6: IIE4, IIE5

" 13: IIE5, IIIA, IIIB 1st reaction paper due

" 20: Mid-term exam

" 27: Fall break

November 3: IIIB, IIIC

" 10: IIIC

" 17: IIID, IIIE

" 24: IVA 2nd reaction paper due

December 1: IVB, IVC

" 8: IVA, IVB, V Term paper due

" ?: Final exam