Economics 110, Section 3: Introduction to Economic Theory

Professor Christiaan Hogendorn
Fall 2006
Prof. Hogendorn's Homepage Course Policies

Syllabus

L = Michael C. Lovell, Economics with Calculus, World Scientific Publishers, 2004. buy errors.

F = David Friedman, Hidden Order, HarperCollins, 1996.

I suggest you read the textbook after the corresponding lecture. You are responsible just for concepts in the sections in [brackets]; otherwise both the concepts and the math will be covered on exams.

Items marked with # are not yet available.

I. Introduction
Sept. 5 T 1. Introduction
L: 1.1-1.6 [1.5.5]
F: 1
Sept. 7 Th 2. Markets for Goods and Services and "Why is Economics the Dark Side?"
L: 3.1-3.4 [3.3.1, 3.3.2, 3.3.3]
F: 2
Online reserve: Jerry Muller, The Mind and the Market, Chapter 1
Sept. 12 T 3. Analysis in the Supply and Demand Model
L: 3.5 [3.5.1, 3.5.3], 3.6.1
F: 4
Sept. 14 Th 4. Consumer and Producer Surplus
L: 3.3.2
F: 5

II. Economic Policy Using Supply and Demand
Sept. 19 T 5. Price Controls and Taxes
L: 3.3.1, 3.6.3. 3.8.0, 3.8.1, [3.8.2], [3.8.3]
F: 7, 17
Sept. 21 Th 6. International Trade
L: 3.8.4
F: [6], 19
Article: Emily Wax, "Africans Say G-8 Is Out of Touch," Wall Street Journal, July 4, 2005.
Article: "Landed Gentry on the Dole," Wall Street Journal, August 24, 2005.
Sept. 26 T 7. Externalities and the Environment
F: 18

III. Market Structure
Sept. 28 Th 8. Production and Costs
L: 5.1, 5.2, 5.3 [5.3.3, 5.3.4], 5.4, [5.4.3] Chapter 5, pp. 183-208
F: 9
Oct. 3 T 9. The Competitive Firm
L: 5.5 [5.5.3], 6.1, 6.2 [6.2.4]
#Handout
Oct. 5 Th FIRST MIDTERM
Covers classes 1-8.

Oct. 10 T 10. Monopoly
L: 5.5.2, 6.3.0, 6.3.1, [6.4], 6.6
F: 10
Oct. 12 Th 11. The Labor Market
F: 14
Article: David Wessel, "As Rich-Poor Gap Widens in the U.S., Class Mobility Stalls, Wall Street Journal, May 13, 2005: Page A1.
Oct. 17 T OCTOBER BREAK
Oct. 19 Th 12. The Capital Market I
L: Appendix 8.1
F: 12
Article: Merrill Goozner, "Higher Skills, Fewer Jobs," The American Prospect, January, 2004.
Oct. 24 T 13. The Capital Market II
L: 11.2.3, 11.2.4

IV. Introduction to Macroeconomics
Oct. 26 Th 14. Introduction to Macroeconomic Models
L: 8.1, 8.2, 9.2.1, 9.2.2, 9.2.4
F: 8
[Article] Robert Gordon, "Two Centuries of Economic Growth: Europe Chasing the American Frontier," working paper, March 30, 2004.
Oct. 31 T 15. Money and Central Banks
L: 10.3, 10.4
Nov. 2 Th 16. Inflation
L: 8.4 [8.4.4], 8.5 [8.5.3], 9.2.3
Article: 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.

V. Neoclassical Macroeconomics
Nov. 7 T 17. A Simple Neoclassical Macro Model
L: 12.1, 12.2, [12.3]
Nov. 9 Th 18. Savings and Investment
L: 10.5.4, 10.6
Nov. 14 T 19. Growth
L: 12.4, 12.5.4, 12.5.5, 12.6
Article: Robert E. Lucas, "The Industrial Revolution: Past and Future," The Region, Minneapolis Fed, 2003 Annual Report.
Article: Catherine Pattillo, Sanjeev Gupta, and Kevin Carey, "Growing Pains," Finance and Development, IMF, 43(1), 2006.

V. Keynesian Macroeconomics
Nov. 16 Th SECOND MIDTERM EXAM
Covers classes 9-19.
Nov. 21 T No Class
Nov. 23 Th THANKSGIVING
Nov. 28 T 20. Unemployment and Business Cycles
L: 8.3 [8.3.2], 8.6
Nov. 30 Th 21. Concerns about Market Clearing
L: 7.3.5
(Real and Nominal Rigidities)
Article: Joseph Stiglitz, "Globalism's Discontents," The American Prospect, 13(1), 2002.
Dec. 5 T 22. Inflation and Unemployment
L: 11.3
Dec. 7 Th 23. Monetary Policy
L: 11.5

Dec. 15 F 24. Household Choices Revisited
L: [4]
F: [3]
Dec. 15 F Review Session
2:00pm PAC 001

Dec. 20 W FINAL EXAM Sitting 1
9:00am-12:00pm PAC 001
Dec. 21 Th FINAL EXAM Sitting 2
10:00am-1:00pm PAC 004