**Courses**

**Economics (ECON)**

- ECON-E 504 Mathematics for Economists (3 cr.) Topics in mathematics that are particularly useful in the application of microeconomic theory, macroeconomic theory, and econometrics. Topics covered include: matrix algebra, comparative-static analysis, constrained optimization, difference equations in discrete time, game theory, and set theory as applied to general equilibrium analysis.
- ECON-E 513 Special Topics in Economic History (3 cr.) Explicit methodology and economic analysis applied to major issues in American and European economic history.
- ECON-E 514 The Nonprofit Economy and Public Policy (3 cr.) P: ECON-E 201. The role of nonprofit organizations (universities, churches, hospitals, orchestras, charities, day care, research, nursing homes) in mixed economies. Public policy controversies such as regulation of fundraising, antitrust against universities, "unfair" competition with for-profit firms, and the tax treatment of donations. (This course may not be taken for credit by anyone who has received credit for ECON-E 414.)
- ECON-E 515 Institutional Setting for Health Economics in the U.S. (3 cr.) P: or C: ECON-E 521 and ECON-E 571. Overview of the structure fo the U.S. health care system including health care financing, health care delivery, and government programs. Private and public financing mechanisms as well as government regulation. Comparison of the U.S. system to the health care systems of other countries.
- ECON-E 516 Institutional Setting for Nonprofit/Philanthropic Economics (3 cr.) P: or C: ECON-E 521 and ECON-E 571. This course provides a broad overview of nonprofit institutions and philanthropic practices, along with a discussion of available data sources on each. We discuss the size and scope of nonprofit organizations, revenues, goverance, regulation and taxation, intersectoral relations, patterns of philanthorpy, and public policies that affect giving behaviors.
- ECON-E 519 Regional Economics (3 cr.) Regional economics is the study of economic behavior in space. The course examines the internal and interregional determinants of growth and decline of a region from supply and demand perspectives. Public policies to influence these determinants are considered.
- ECON-E 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, valve functions and envelope theorems. Elements of dynamic programming and other methods of economics dynamics.
- ECON-E 521 Theory of Prices and Markets (3 cr.) P: ECON-E 504 or consent of instructor. 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 on 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.
- ECON-E 522 Macroeconomic Theory 1 (3 cr.) P: ECON-E 520. Introductory course on macroeconomic dynamics; covers growth models and asset pricing theories, endogenous growth theories, optiomal growth problems, and competitive dynamic equilibrium models. Dynamic programming tools introduced as needed. All models are cast in discrete time setup; presents deterministic and stochastic theories.
- ECON-E 528 Economic Analysis of Health Care (3 cr.) A graduate introduction to health economics. Applications of economic theory to problems in various areas in health care. Applications of econometric techniques to the same. Topics include how physicians, institutions, and consumers respond to economic incentives and what policies contribute maximally to efficiency and welfare.
- ECON-E 545 Applied Labor Economics (3 cr.) P: ECON-E 321 or ECON-E 470 or equivalents. Discussion of wage rates and working conditions, searches by workers or firms, investment in training, quits and layoffs, shirking, discrimination, the division of household labor, retirement, and implicit contracts. The course also examines the impact of institutions such as unions and the government on the efficiency of the labor market
- ECON-E 568 Public Finance I (3 cr.) P: ECON-E 308 and ECON-E 470. Partial equilibrium, microeconomic analysis of how tax and subsidy policies affect various types of individual and firm behavior. Theoretical models are introduced to assess and develop quantitative studies of fiscal policy. Summaries of the empirical impact of policy will be formed for the purpose of becoming an "input" in the complete general equilibrium analysis conducted in Public Finance II.
- ECON-E 569 Public Finance II (3 cr.) P: ECON-E 568. Empirical examination of the general equilibrium effects of major tax and subsidy programs, such as personal income taxation, corporate profit taxation, income maintenance, social security, and government provision of education. In addition, proposed reforms to these programs will be analyzed using empirically based simulation models.
- ECON-E 570 Fundamentals of Statistics and Econometrics (3 cr.) Mathematical overview of statistics and econometrics at graduate level. Topics covered include probability and probability distributions, sampling distributions, tests of hypotheses, estimation, simple regression, multiple regression, generalized linear model and its applications, simultaneous equation system.
- ECON-E 571 Econometrics I-Statistical Foundations (3 cr.) P: Calculus and Linear Algebra. 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.
- ECON-E 573 Econometrics II (3 cr.) P: ECON-E 571. Estimation and inference in linear regression model, basic asymoptotic theory, heteroskedasticity, measurement error, generalized least squares, instrumental variable model, maximum likelihood estimation, generalized method of moments, qualitative response models.
- ECON-E 574 Applied Econometrics and Forecasting (3 cr.) P: ECON-E 570. An overview of techniques employed in economic model building, estimation, and usage. Topics covered include single and multi-equation system estimation, limited dependent variable regression techniques, hypothesis testing, policy analysis, and forecasting. Various forecasting techniques are discussed, including smoothing and decomposition methods and time series analysis. A number of projects are assigned throughout the semester in order to give the student hands-on experience with the different techniques.
- ECON-E 577 Computer Methods and Data Analysis (3 cr.) P: ECON-E 570 or ECON-E 573. The first of a two-semester sequence in computer methods and data analysis. ECON-E 577 teaches students to use large datasets in an econometric analysis to answer a research question, to program in Stata, and to organize a complicated data project. The course also will complete students' introduction to the Stata programming language. The course prepares students to carry out their own large-scale research project and/or efficiently work within an organization that uses large data files to achieve its objectives.
- ECON-E 578 Advanced Computer Methods and Complex Datasets (3 cr.) P: ECON-E 577. In ECON-E 578 students learn to conduct empirical research with advanced computer methods and complex datasets. In the first half of the course students will learn the process by which empirical research is conducted by critiquing several published research articles and replicating the research from a previously published journal article. The replication will involve critical assessment of the research question, specific aims, innovation, significance, methodological approach, as well as learning the computer methods and datasets necessary to replicate the results. In the second half of the course students will use their acquired knowledge of research process to write a detailed proposal for an original research project. The course culminates with an oral presentation of the proposal, followed by critical peer assessment of the project's research question, aims, innovation, significance, and methods. In addition to learning the process of research, students will acquire advanced Stata programming skills (e.g., ado-file programming, Mata, maximum-likelihood programming), and be introduced to several complex data sets that are important in health economics research. At the culmination of the course, students will be prepared to execute their first original research project. That execution will commence during the summer following completion of E578.
- ECON-E 581 Topics in Applied Microeconomics I (3 cr.) P: ECON-E 521. This course is a graduate-level introduction to theoretical and empirical applications in one or more areas of microeconomics. We will demonstrate how economic concepts can be usefully applied to understanding problems in the subdiscipline under study and discuss and apply estimation techniques appropriate for problems in the area.
- ECON-E 582 Topics in Applied Microeconomics II (3 cr.) P: ECON-E 521 and ECON-E 570 or consent of the instructor. This course is a second graduate-level introduction to theoretical and empirical applications in two areas of microeconomics. We will demonstrate how economic concepts can be usefully applied to understanding problems in the subdiscipline under study, and discuss and apply estimation techniques appropriate for problems in the area.
- ECON-E 583 Introduction to Applied Macroeconomics (3 cr.) P: ECON-E 522 and ECON-E 570 or equivalents and consent of the instructor. This course is a graduate-level introduction to theoretical and empirical applications in two areas of macroeconomics. We will demonstrate how economic theories can be usefully applied to understanding problems in the subdiscipline under study and discuss and apply estimation and calibration techniques appropriate for problems in the area.
- ECON-E 611 Information Economics and Theories of Incentives and Contracts (3 cr.) P: ECON-E 521. The course covers topics in the theories of incentives and contracts that study situations in which there are explicit or implicit contractual obligations. It explores the role and influence of asymmetric information in determining outcomes with special emphases on moral hazard and adverse selection.
- ECON-E 621 Theories of Prices and Market (3 cr.) P: ECON-E 520. Analysis of equilibrium, first- and second-orderconditions; statistical derivation of demand and cost curves; activity analysis; general equilibrium; welfare economics; microeconomics of capital theory; pure oligopoly and gave theory.
- ECON-E 643 Health Economics I (3 cr.) P: ECON-E 515, ECON-E 573, and ECON-E 611. E643 will provide students with the theoretical knowledge and make them familiar with current research on key issues in health economics, including the production of and demand for health, determinants of health and health disparities, change in health technology, and the economic evaluation of health and health care.
- ECON-E 644 Health Economics II (3 cr.) P: ECON-E 515, ECON-E 573, and ECON-E 611. This course builds on the core theory, econometrics and health economics courses to provide an in depth knowledge of key issues related to markets and market failure in the supply of health care services, the impact of insurance on the demand for health care services, response of consumers to insurers' financial incentives, the role of government in health care markets, the labor market behavior of physicians; hospital ownership, competition, and reimbursement. In addition to introducing theoretical concepts the course aims at familiarizing students to current research on these topics by means of review of seminal journal articles. It will provide a foundation for understanding key dimensions in health care markets, appreciate contributions of past literature on the subject and initiate constructive critical thought on the existing work and future directions of research in the field.
- ECON-E 670 Econometrics 3-System and Panel Econometric Models (3 cr.) P: ECON-E 573 or equivalent. Simultaneous equation models (2SLS, 3SLS), time series concepts for panel data analysis and serial correlation, pooled cross-section methods, linear panel data models [First Differences, Fixed Effects (FE) and Random Effects (RE)], nonlinear panel data models (ML and GMM).]
- ECON-E 673 Econometrics 4-Microeconometrics (3 cr.) P: ECON-E 573 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.
- ECON-E 744 Seminar/Workshop in Health Economics (3 cr.) P: ECON-E 644. The Seminar in Health Economics introduces students to current working papers in health economics by leading scholars who present their work in a seminar format at IUPUI. It also provides the opportunity for PhD students to present their own work to faculty and peers.
- ECON-S 201 Introduction to Microeconomics: Honors (3 cr.) Designed for students of superior ability. Covers the same core materials as E201.
- ECON-E 101 Survey of Current Economic Issues and Problems (3 cr.) This course provides a basic introduction to economic concepts and principles along with a survey of important economic issues. It is intended for students who do not plan to major or minor in Economics. No previous instruction in economics is necessary.
- ECON-E 102 Economics of Personal Finance (3 cr.) Shows how the state of the economy, prices, and interest rates should guide personal decisions about spending, saving, credit, investments, and insurance. Intended for non-business students.
- ECON-E 201 Introduction to Microeconomics (3 cr.) P: Sophomore standing. An analysis of evolution of market structure using the analytical concepts of supply and demand, opportunity cost, and marginal analysis. Applications include a variety of concurrent microeconomic issues.
- ECON-E 202 Introduction to Macroeconomics (3 cr.) P: ECON-E 201. An introduction to macroeconomics that studies the economy as a whole; the levels of output, prices, and employment; how they are measured and how they can be changed; money and banking; international trade; and economic growth.
- ECON-E 270 Introduction to Statistical Theory in Economics (3 cr.) P: MATH-M 118. Review of basic probability concepts, sampling, inference and testing statistical hypotheses. Applications of regression and correlation theory, analysis of variance and elementary decision theory.
- ECON-E 303 Survey of International Economics (3 cr.) P: ECON-E 201-E202. Survey of international economics. Basis for and effects of international trade, commercial policy and effects of trade restrictions, balance of payments and exchange rate adjustment, international monetary systems, and fixed vs. flexible exchange rates. Students who have taken ECON-E 430 many not enroll in ECON-E 303 for credit.
- ECON-E 304 Survey of Labor Economics (3 cr.) P: ECON-E 201. This course studies the operation of the market for labor, including how wage rates are determined, how the level of employment is determined, and how and why wage rates and employment levels differ across different industries and different types of jobs. Other important topics include the role of labor unions, and the role of the government in taxing or subsidizing labor and in regulating labor market practices (including imposing minimum wages). The course also studies wage contracting behavior and why it may cause wage rates to be relatively inflexible over time.
- ECON-E 305 Money and Banking (3 cr.) P: ECON-E 201 or ECON-E 202. This course studies money, banks, financial markets and government monetary and financial policy. Monetary topics include the role of money in the economy, different types of money, the measurement of the money supply, the nature of monetary institutions and the conduct and impact of monetary policy. Other important topics are the special monetary and financial role of banks and the nature and goals of bank regulation. On the finance side, the main focus is the organization of financial markets, the determination of interest rates and bond prices, and the nature and purpose of government regulation of the financial system.
- ECON-E 307 Current Economic Issues (3 cr.) P: ECON-E 201 or permission of instructor. This is a variable-topics course whose current topic is selected by the department and the instructor. The instructor provides a topic and semester-specific class description. In recent years E307 course topics have included: history of economic thought, health economics, mathematical economics, applied microeconomics. Typically there are no prerequisites, although the instructor may recommend for students to have taken particular economics and/or mathematics courses.
- ECON-E 321 Intermediate Microeconomic Theory (3 cr.) P: ECON-E 201 This course studies basic topics from Introduction to Microeconomics (E201) more thoroughly and in a more rigorous way. A key topic is consumer theory, which helps economists understand and try to predict how consumers allocate their incomes over different goods and services including in situations where the consequences of different decisions are uncertain and/or depend on the action of others (game theory). Another common topic is the theory of the firm, which is the theory of how firms operating in different types of market environments - competition, monopoly, oligopoly, etc. - make decisions about production, employment, purchases of other inputs, investment in plant and equipment, etc.
- ECON-E 322 Intermediate Macroeconomic Theory (3 cr.) P: ECON-E 201-E202. Theory of income, employment, and price level. Study of countercyclical and other public policy measures. National income accounting.
- ECON-E 327 Game Theory (3 cr.) P: ECON-E 201-E202 or permission of instructor. MATH-M 119 or equivalent recommended. Mathematical analysis of strategic interaction. Noncooperative games played once or repeatedly, with perfect 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.
- ECON-E 337 Economic Development (3 cr.) P: ECON-E 201, ECON-E 202, and junior standing or consent of instructor. Characteristics of economically underdeveloped countries. Obstacles to sustained growth; planning and other policies for stimulating growth; examination of development problems and experience in particular countries.
- ECON-E 375 Introduction to Mathematical Economics (3 cr.) Much of economic theory is based on the belief that the behavior of economic agents can be described and/or predicted by assuming that they optimize. Optimization (also called maximization) problems are most often posed and solved using mathematics. Calculus is very useful for mathematical optimization problems, and graphs are widely used to illustrate them. This course combines calculus, linear (matrix) algebra, graphs and verbal or written explanations to explain how mathematical optimization theory works and how it is applied to economics. As part of the course, students learn how to construct graphs using Excel, and how to identify or derive and use the equations and/or functions that provide the basis for these graphs.M119 or the equivalent strongly recommended
- ECON-E 385 Economics of Industry (3 cr.) P: ECON-E 201 or permission of instructor. A theoretical and empirical analysis of the structure, conduct, and performance of major American industries. Emphasized is the degree of competition in various markets, how markets operate under conditions of competition or monopoly, and competition as a dynamic process over time.
- ECON-E 387 Health Economics (3 cr.) P: ECON-E 201. This course applies economic theory to the study of policy issues in health economics. Specific issues included are: determinants of demand for medical services and insurance; training and pricing behavior of physicians; pricing behavior and costs of hospitals; market and regulative approaches.
- ECON-E 406 Senior Seminar (3 cr.) P: ECON-E 321 and ECON-E 322 or permission of instructor. This is the capstone course for an Economics major. It is intended to help you review and assess the usefulness of the things you have learned as an economics major, and to acquaint you with some of the economic questions and issues you'll confront after you graduate. The precise nature of the curriculum for the course depends on the instructor: different instructors often teach very different versions of the course.
- ECON-E 408 Undergraduate Readings in Economics (3 cr. maximum cr.) P: Permission of instructor. ECON majors only.
This is an independent study course. You may register for 1-3 credits. In order to register for this course you need to obtain the permission of a Economics faculty member who will serve as your course supervisor. You and your supervisor will work out a plan of study. Typically, a student begins the process by proposing a topic area, and we try to connect him with a member of our faculty who has expertise and interest in that area.

E201 and E202 recommended

- ECON-E 410 Selected Topics in U.S. Economic History (3 cr.)
As offered in recent years, this course focuses on monetary history, beginning with the European coin-money origins of the U.S. monetary system, moving on to the diverse and innovative commodity-, coin and (especially) paper-money practices of the American colonies, and finishing up with the monetary history of the American Revolution and the period immediately following it. The course concludes with an examination of the nature, causes and consequences of the monetary clauses of the U.S. Constitution. Links between monetary history and political history are emphasized, as are links between monetary history and unresolved issues in monetary theory.

ECON-E 201 and ECON-E 202 are recommended.

- ECON-E 420 History of Economic Thought (3 cr.) P: ECON-E 201-E202. Examination of main theoretical developments since the beginning of the systematic study of economics. Theoretical propositions and structures of the earlier writers will be interpreted and evaluated in terms of modern economic analysis.
- ECON-E 450 Business Conditions Analysis and Forecasting (3 cr.) P: ECON-E 270. This course is designed to acquaint students with a variety of econometric topics in the areas of forecasting and time series analysis. Its primary goal is to provide hands-on experience with different forecasting techniques. Students learn why businesses need to construct forecasts and how to develop appropriate forecasting models for particular business purposes. They become familiar with the main sources of macroeconomic data. Since economic instability is a major complicating factor in business forecasting, the course examines the sources of economic instability in industrialized economies. It studies different theories of the business cycle and the empirical determinants of aggregate demand, prices, and interest rates. The course is quite technical in nature, and it requires students to become familiar with the Stata statistical package accessible through IUAnyware. They should already be familiar with the fundamentals of statistics, basic regression techniques and basic principles of economics.
- ECON-E 470 Introduction to Econometrics (3 cr.) P: ECON-E 270
Econometrics is the statistical analysis of economic data, although the same techniques are commonly used to study business data, medical data, political data, etc. The foundations for econometrics are statistical theory and (in particular) regression analysis, which students should have been introduced to in E270. Topics include estimation of linear and nonlinear regression models, hypothesis testing, properties of parameter estimates, and techniques for handling problems with the data being analyzed problems that include serial correlation or heteroskedasticity of the regression residuals, correlation among explanatory variables or between those variables and the residuals, errors or missing observations in the data, etc. Another common topic is simultaneous-equations models in which relationships between many independent and dependent variables are estimated jointly.

M119 or the equivalent recommended