Programs by Campus
Bloomington
Economics
Courses

ECONE 471 Econometric Theory and Practice I (3 cr.)P: E370 or either MATH M119 or M211 or consent of instructor. Emphasis is on the probability and statistical theory underpinning the classical linear regression model. Special topics include finite and asymptotic properties of point and interval estimation, hypothesis testing and model building. Several software packages are used in computer lab applications.

ECONE 472 Econometric Theory and Practice II (3 cr.)P: E471. Emphasis is on the matrix formulation and computer estimation methods for single and multiple equation models using economic and business data. Attention is given to the assumptions required for testing sets of coefficients and model structures. Special topics include heteroscedasticity, multicollinearity, errors in variables, simultaneity, timeseries analysis, limited dependent variables, sample selection, and alternatives to leastsquares estimation.

ECONE 501 Seminar in Economics (3 cr.)P: Consent of instructor. Advanced topics in economics ranging across all fields.

ECONE 502 Teaching Undergraduate Economics (3 cr.)Planning, presenting, and evaluating undergraduate economics teaching. Content includes learning theory, instructional objectives, course planning, textbook selection, lecturing and discussion techniques, visual aids and simulation, constructing test and homework problems, grading, student evaluation of instruction, practical classroom teaching problems, and survey of evaluation literature.

ECONE 520 Optimization Theory in Economic Analysis (3 cr.)P: Calculus and linear algebra. Introduction to concepts and techniques of optimization theory applied in modern micro and macroeconomics. Theory and application of Lagrange multipliers, comparative statics analysis, value functions and envelope theorems. Elements of dynamic programming and other methods of economic dynamics.

ECONE 521 Theory of Prices and Markets I (3 cr.)Develops the methodology of economic analysis and teaches the tools and language of price theory. Fundamental elements of consumer theory, producer theory, and economics of uncertainty. Emphasis on comparative statics and the duality theory. Topics include welfare analysis, the theory of price indices, quality of goods, revealed preferences, the theory of derived demand, expected utility theory, attitudes toward risk, and various measures of riskiness.

ECONE 522 Macroeconomic Theory I (3 cr.)Introductory course on macroeconomic dynamics; covers growth models and asset pricing theories, endogenous growth theories, optimal growth problems, and competitive dynamic equilibrium models. Dynamic programming tools introduced as needed. All models are cast in a discrete time setup; presents deterministic and stochastic theories.

ECONE 529 Economic History (3 cr.)P: E521 or consent of instructor. Use of economic analysis and econometric techniques to examine topics in the development and institutions of the U.S. and European economies.

ECONE 530 International Trade (3 cr.)P: E521, E621, or consent of instructor. Introduction to theories of international trade (including such topics as pattern of trade, gains from trade, testing trade theories) and analysis of trade policies (including such topics as tariffs, quotas, and strategic trade policy).

ECONE 541 Labor Market Analysis (3 cr.)P: E520 or E521, or consent of instructor (Bloomington); P: Consent of instructor (Indianapolis). An analytical approach to the labor market. Theoretical underpinning and statistical testing of issues in demand and supply of labor, household decision making, human capital, contract theories, unionism, minimum wages, and discrimination.

ECONE 550 Monetary Theory and Organization (3 cr.)Theory and practice of monetary control; supply and demand functions for money; instruments of monetary control; channels through which money exerts an influence on the economy.

ECONE 551 Monetary Economics II (3 cr.)Introduces alternative models of monetary economies; covers topics in monetary economics such as money and growth and optimal money growth. The course takes a unified approach to macroeconomic policy, treating monetary and fiscal policy as jointly determining macroeconomic equilibria. May include discussion of empirical work on money.

ECONE 571 Econometrics 1—Statistical Foundations (3 cr.)P: Undergraduate courses in statistics and calculus. The probability bases for statistical estimation and testing are introduced in the context of issues, theories, and data found in economics. The classical linear regression model is presented as the starting point for multivariate analyses in econometrics. Students work with various computer programs in and out of the scheduled class periods.

ECONE 572 Econometrics 2—Regression and Time Series (3 cr.)P: E571 or equivalent. Regression and time series. Departures from classical regression. Generalized least squares; heteroskedastic models; dynamic regression. Basic asymptotics. Measurement errors and instrumental variables. Some standard nonlinear models. Course covers theory and data analysis.

ECONE 585 Industrial Organization and Control (3 cr.)P: Consent of instructor (Indianapolis only). Analysis of interrelated structure, behavior, and performance in industrial markets and multimarket corporations; multidimensional nature of competitive processes. Public controls. Topics include patterns of oligopoly, vertical integration, entry barriers; “cartelized” coalescence, limit pricing, price discrimination, longterm contracts; capacity expansion and utilization, resource reallocation, and innovation.

ECONE 591 Macro Topics in Economic Development (3 cr.)P: E521, E522, or consent of instructor. Analysis of new theories of economic growth and various issues related to macroeconomic policy in lessdeveloped countries. Topics include fiscal reform, exchange rate policy, financial liberalization, and money vs. exchange rate–based stabilization programs.

ECONE 592 Trade Policy and Economic Development (3 cr.)Examines the major issues surrounding the conduct of trade policy in lessdeveloped countries. Covers arguments for and against importsubstituting vs. exportpromoting policies, the nature of optimal commercial policy, alternative strategies for liberalization of the trade regime, and the pros and cons of direct foreign investment.

ECONE 621 Theory of Prices and Markets II (3 cr.)P: E521, calculus, and linear algebra. Analysis of equilibrium, first and secondorder conditions; statistical derivation of demand and cost curves; activity analysis; general equilibrium; welfare economics; microeconomics of capital theory; pure oligopoly and game theory.

ECONE 622 Macroeconomic Theory II (3 cr.)P: E522, calculus, and linear algebra. Extends general equilibrium models from E522 by introducing nominal variables, monetary and fiscal policies; some exposure to alternative dynamic models, nominal and real rigidities, market imperfections, dynamically consistent policies. Numerical methods introduced to simulate dynamic stochastic general equilibrium models. Time series methods presented to discuss empirical implications of aggregate models.

ECONE 624 Mathematical Economics I (3 cr.)P: One year of calculus, one semester of linear algebra, or consent of instructor. Introduction to stochastic control theory with applications to economics. Covers Wiener process, stochastic integration, Ito’s lemma and the stochastic Bellman equation. Applications to economics include optimal growth theory, the inverse optimal problem, adjustment cost theory of supply, exhaustible resources, optimal consumption and portfolio rules, and transactions demand for money.

ECONE 625 Mathematical Economics II (3 cr.)P: One year of calculus, one semester of linear algebra, or consent of instructor. Mathematical analysis of problems of motion via Central Principle of Motion; dynamic efficiency of centralized and decentralized economic systems; differential games.

ECONE 626 Game Theory (3 cr.)P: E521, E621. Mathematical analysis of strategic interaction. Noncooperative games played once or repeatedly, with perfection or imperfect information. Necessary condition for a solution (equilibrium), as well as sufficient conditions (refinements). Cooperative games, such as bargaining and market games. Numerous applications, including experimental games.

ECONE 627 Experimental Economics (3 cr.)P: Intermediate microeconomics and statistics. Focuses on the use of laboratory experimental methods in applied microeconomics. Specific application areas will include the analysis of resource allocation mechanisms for both private and public goods and individual choice under uncertainty using both human and nonhuman subjects.

ECONE 628 Advanced Macroeconomic Theory (3 cr.)P: E622 or equivalent. The course provides an indepth treatment of major areas in macroeconomics, advancing to the several frontiers at which its theory is currently most tested. These include convergence to rational expectations equilibrium, nearrational solutions, nonWalrasian equilibrium, and the management of incentives and macroeconomic disturbances through contractual arrangements.

ECONE 629 Open Economy Macroeconomics (3 cr.)P: E622. Combines international finance and openeconomy macroeconomics with history and current functioning of the international financial system and the policy and exchange regime choices of countries within it. Explorations include determinants of currentaccount balances and exchangerate dynamics as well as implications of the international mobility of goods, financial services, and capital, international portfolio and direct investment behavior, and financial derivatives.

ECONE 630 International Trade II (3 cr.)P: E530. Second part of the graduate sequence in international trade. Focuses on analyzing strategic situations in an international context. Topics include imperfect competition in international trade, strategic trade policy, trade policy under incomplete information, and tariff and quota games.

ECONE 641 Quantitative Studies in Labor Economics (3 cr.)P: E541, E571, and at least concurrent registration in E572 or consent of instructor. Emphasis on the application of statistical and econometric theory and methods in the analysis of current issues in labor economics. The application of models involving discrete choice, search, screening, signaling, contracts, tournaments, and Markov processes to explain various labor market phenomena will be reviewed.

ECONE 660 Public Economics I (3 cr.)P: E621 or concurrent registration. Analysis of public expenditures and taxation from a microeconomic viewpoint. Topics include externalities, pure and impure public goods, efficiency and distributional effects of taxation, optimal taxation theory, benefitcost analysis.

ECONE 661 Public Economics II (3 cr.)P: E660. Indepth analysis of selected aspects of public expenditures and taxation. Illustrative topics: intertemporal and aggregative effects of tax and expenditure policies, emphasizing saving and investment incentives; taxation of risky assets; taxation of imperfectly competitive industries; benefitcost analysis under uncertainty; public choice.

ECONE 671 Econometrics 3—Nonlinear and Simultaneous Models (3 cr.)P: E572 or equivalent. Introduction to econometric theory. Parameter estimation for single and multiple equation systems. Inference and hypothesis testing. Monte Carlo studies.

ECONE 672 Macroeconometrics (3 cr.)P: E671 or equivalent. Advanced topics in econometrics. Estimation of dynamic equation systems. Spectrum analysis. Problems of design for large macroeconometric models.

ECONE 673 Microeconometrics (3 cr.)P: E572 or equivalent. Microeconometrics with applications to labor, health, and public economics. Extensive coverage of limited dependent variable and panel data models. Empirical implementation is an essential component of the course.

ECONE 685 Advanced Industrial Organization (3 cr.)P: E585. Extends the coverage in E585. Provides greater indepth coverage of contemporary industrial organization problems from a theoretical perspective and provides coverage of important industrial organization topics not discussed in E585. Topics include mechanism design, signaling and screening, merger theory, incomplete contracting and the firm, and antitrust and regulation.

ECONE 698 Comparative Economics and Economics of Transition (3 cr.)P: Consent of instructor. Modern approaches to analysis of nonmarket economic systems and mechanisms. Emphasis on the incentives generated by these mechanisms and information flows in the system. Since the field of comparative economics is both theoretical and institutional, students are required to read both analytical pieces containing formal models and descriptive papers.

ECONE 713 Seminar in Economic History (3 cr.)P: E529 or consent of instructor. Advanced topics in economic history (U.S. and European) with particular emphasis on recent debates in the literature of the new economic history. Application of economic theory and econometric techniques to historical problems.

ECONE 724 Seminar in Economic Theory (36 cr.)Advanced topics in business cycles, general equilibrium, growth, mathematical economics, and welfare economics. Offered periodically.

ECONE 730 Seminar in International Trade (3 cr.)Third part of the graduate sequence in international trade; intended for those writing theses in the field. Focuses on a deeper understanding of topics such as the political economy of protection, cooperation in repeated tariff games, trade negotiations, and multinational enterprises.

ECONE 748 Seminar in the Economics of Labor and Human Resource Development (3 cr.)P: E541 or consent of instructor. Selection from current issues in labor: labor markets, comparative labor economics, human capital, workforce planning, and labor relations.

ECONE 752 Seminar in Money (3 cr.)Current topics in advanced monetary and banking theory. Preparation of a research paper and oral presentation to a seminar.

ECONE 762 Seminar in Public Economics (3 cr.)Advanced topics in public economics. Preparation of a research paper and oral presentation to the seminar.

ECONE 770 Seminar in Econometrics (3 cr.)Advanced topics in econometrics in time series and/or crosssectional data analysis.

ECONE 785 Seminar in Industrial Organization (3 cr.)Third course in the graduate industrial organization sequence; intended for those writing in the field. Topics include bargaining, reputation, oligopoly, research and development, vertical restraints, entry deterrence, transaction costs, and international industrial organization.

ECONE 792 Workshops in Problems of Development (3 cr.)Indepth study of specific underdeveloped area or specific topic in problems of underdevelopment.

ECONE 793 Seminar in Planning Strategies and Techniques (3 cr.)P: E591. Analysis of strategic choices and planning methods in Western economies and socialist economies in transition. Theory and practice of planning in underdeveloped countries.

ECONE 800 Research in Economics (16 cr.)This course is eligible for a deferred grade.

ECONE 808 Thesis (M.A.) (16 cr.)This course is eligible for a deferred grade.

ECONE 809 Thesis (Ph.D.) (112 cr.)This course is eligible for a deferred grade.

ECONE 810 Readings in Economic History (16 cr.)This course is eligible for a deferred grade.

ECONE 824 Readings in Economic Theory (16 cr.)This course is eligible for a deferred grade.

ECONE 830 Readings in International Trade (16 cr.)This course is eligible for a deferred grade.

ECONE 840 Readings in Economics of Labor and Human Resource Development (16 cr.)This course is eligible for a deferred grade.

ECONE 850 Readings in Monetary Economics (16 cr.)This course is eligible for a deferred grade.

ECONE 860 Readings in Public Economics (16 cr.)This course is eligible for a deferred grade.

ECONE 870 Readings in Advanced Econometrics (16 cr.)This course is eligible for a deferred grade.

ECONE 880 Readings in Industrial Organization (16 cr.)This course is eligible for a deferred grade.

ECONE 890 Readings in Development and Economics of Transition (16 cr.)This course is eligible for a deferred grade.

ECONM 500 Mathematics for Economists (3 cr.) P: Calculus. Introduction to concepts and methods of constrained and unconstrained optimization theory applied in modern economics. Theory and application of Lagrange multipliers, comparative statics analysis, value functions and envelope theorems. Elements of dynamic programming and other methods of economic dynamics.

ECONM 501 Microeconomic Theory I (3 cr.) P: Calculus. The course develops the methodology and language of price theory. Partial equilibrium analysis of consumer theory, producer theory, and economics of uncertainty. Emphasis on comparative statics and the duality theory. Topics include welfare analysis, the theory of price indices, quality of goods, revealed preferences, the theory of derived demand, expected utility theory, attitudes toward risk, and various measures of riskiness.

ECONM 502 Macroeconomics (3 cr.) P: Calculus. General equilibrium modelling of economic growth, business cycle fluctuations, evolution of income and wealth inequality and technological progress. Analysis of monetary and fiscal policy and its effects on aggregate economic outcomes.

ECONM 504 Econometrics I (4 cr.) P: Calculus. Emphasis is on the probability and statistical theory underpinning the classical linear regression model used in economic applications. Special topics include finite and asymptotic properties of point and interval estimation, hypothesis testing and model building. Several software packages such as Stata or R are used in computer lab applications.

ECONM 511 Microeconomic Theory II (3 cr.) P: Calculus. General equilibrium theory; welfare economics; microeconomics of capital theory; monopoly, oligopoly and game theory, product differentiation, monopolistic competition. Price discrimination. Economics of Information including adverse selection, moral hazard and principal agent models.

ECONM 513 Financial Economics (3 cr.) P: ECONM 501. The class covers theory and empirical evidence relevant to understanding the functioning of modern financialasset markets. Topics include: present value, analysis of risk and return, asset pricing, modern portfolio theory, equilibrium in asset markets, arbitrage pricing theory, the capital asset pricing model, the efficient markets hypothesis, price bubbles and crashes, futures markets, derivative securities and option pricing models.

ECONM 514 Econometrics II (4 cr.) P: Calculus. Emphasis is on the matrix formulation and computer estimation methods for single and multiple equation models using economic and business data. Attention is given to the assumptions required for testing sets of coefficients and model structures. Special topics include heteroscedasticity, multicollinearity, errors in variables, simultaneity, timeseries analysis, limited dependent variables, sample selection, and alternatives to least squares estimation.

ECONM 516 Game Theory (3 cr.) P: Calculus. Rigorous analysis of strategic interaction. Focus on noncooperative games in normal and extensive form. Static and repeated games. The role of information in strategic interaction. Topics include mechanism design, auction theory and one and two sided matching.

ECONM 517 Computational Economics (4 cr.) P: Calculus. The course will begin with a solid introduction to programming in Matlab. The topics to be covered include first of all: calculation of value functions in discrete and in continuous time, solving HamiltonJacobiBellman equations, diffusions, Ito’s Lemma, solving for asset prices implied by theoretical models. The second set of topics to be covered include computing best responses and Nash equilibria.
 ECONM 518 Econometrics: Big Data (3 cr.) P: E 370, E 371 or equivalent. The course consists of discussion of how to import, clean and visualize data on the computer, an introduction to popular tools from machine learning and an overview on recent advances on combining machine learning methods with economic models to conduct causal inference. Use of software package R to analyze large models and large economic data sets.
 ECONM 524 Financial Econometrics (3 cr.) P: ECONM 504, ECONM 514.The course covers the econometrics toolboxes that are useful to analyze financial market data, in particular, time series data. The goal is to understand and implement stateoftheart econometric methods with the data at hand, providing answers to empirical questions. While the course intends to put more emphasis on implementation, and less on rigorous theory, learning some heuristics behind the theory is important part of the course. Topics include stationary time series analysis, persistency, predictive regression, model selection, factor models, and advanced topics.