Catalog
Economics
Professors Lewis and Murray; Associate Professors Riera-Crichton, Shea, and Tefft (chair); Assistant Professors Chicoine, He, and Yung; Visiting Assistant Professors Asfaw, Kurzfeld, Nguyen and Rakitan; Instuctor Subramanian
Intelligent citizenship makes increasing demands on an individual's knowledge of economics. Policy makers in business, government, and the nonprofit sector must frequently evaluate complex economic issues. The goal of the economics curriculum is to educate students, both majors and nonmajors, about the ideas of economics and how they apply to today's world.
Introductory economics courses at Bates (courses numbered 100–199) emphasize a broad nontechnical understanding of economic institutions, policy, and analysis. Courses numbered between 200 and 249 provide nontechnical introductions to more specialized topics. Courses numbered between 250 and 299 cover intermediate economic theory and introduce students to the methods of empirical analysis. Three-hundred-level courses integrate practical economic issues with empirical and theoretical analyses, enabling students to develop sophisticated insight into both contemporary and historical economic problems. More information on the economics department is available on the website (bates.edu/economics/).
Major Requirements
1) ECON 101, 103, 250, 255, 260, and 270. At least three of these four 200-level courses must be taken at Bates, and at least three of these four 200-level courses must be completed prior to senior year. The following statistics courses may be substituted for ECON 250 (Statistics):
BIO 244. Biostatistics.
MATH 215. Statistics.
NRSC 205. Statistical Methods.
2) MATH 105, 106, or 206. Fulfilling this requirement is a prerequisite for ECON 255, 260, and 270.
3) Three 300-level electives in economics. At least two of these courses must be taken at Bates.
4) A fourth economics elective, which may be numbered 200–249 or 300–399. The following courses may substitute for a 200-level elective:
ANTH 339. Production and Reproduction.
PLTC 222. International Political Economy.
SOC 260. Economic Sociology.
5) Senior thesis. Thesis is offered each semester in both a seminar format (ECON 456) and one-on-one with an advisor (ECON 457 and ECON 458).
Students are not permitted to declare the economics major during their senior year.
Students majoring in economics are not permitted to use Applying Mathematical Methods (C006) to satisfy General Education requirements.
Students planning to study abroad should consult the off-campus study section of the economics department website. Most basic questions concerning departmental study-abroad requirements are answered there. Students should then consult with the department chair concerning the acceptability of particular courses for the major.
Because of the numerous, vital, and constantly developing interconnections between economics and other social sciences, economics majors are urged to take as many courses as possible in related disciplines such as anthropology, history, politics, psychology, and sociology.
Pass/Fail Grading Option
Pass/fail grading may not be elected for courses applied toward the major.Non-Bates Credit
Students receiving scores of four or five on the Economics AP exam receive credit for ECON 101 or 103. Students receiving a score of four or five on the Statistics AP exam receive credit for ECON 250. A-Level credit: Students receiving a grade of A or B on the A-Level Economics examinations may receive credit for ECON 101 and 103. No credit is given for the O-Level examinations. International Baccalaureate credit: Students receiving a grade of six or seven in the IB HL program may receive credit for ECON 101 and 103. No credit is given for the IB SL program.Students who have failed a core economics course (ECON 101, 103, 250, 255, 260, or 270) at Bates may not receive major credit for an equivalent course taken at another institution.
Courses
ECON 101. Principles of Microeconomics: Prices and Markets.
A study of competition and monopoly, antitrust policy and public-utility regulation, determination of wages and other sources of income, income distribution, and pollution and public policy. Enrollment limited to 39. Normally offered every semester. [HS] L. Lewis, L. Chicoine.ECON 103. Principles of Macroeconomics: Income and Employment.
A survey of major economic issues in the United States, such as economic growth, employment, and inflation. Students discuss the causes and consequences of fluctuations in income, employment, and inflation, and analyze fiscal and monetary policies designed to correct them. ECON 101 is helpful preparation, but not required. Enrollment limited to 39. Normally offered every semester. P. Shea.ECON 150. Applied Principles of Economics.
What is economics? This course is intended for students who want to answer that question through exposure to the basic principles of economics. Students apply these principles to a variety of topics selected by the instructor, which may include climate change, income inequality, pandemics, patents, trademarks and copyrights, poverty, and social media. The course is also intended for prospective majors and prepares students for a wide range of core and 200-level elective economics courses. Not open to students who have received credit for ECON 101 or 103. Normally offered every semester. L. Lewis, P. Shea.ECON 216. Central Banking and the College Fed Challenge.
Central banks play a critical role in modern economies, including conducting monetary policy and regulating many financial markets. This course examines the structure and practice of central banks such as the Federal Reserve. Special attention is paid to the motivation behind and implementation of monetary policies. The course fields a team of five to ten students to represent Bates at the College Fed Challenge in Boston during the semester, a competition in which groups of students make a presentation about monetary economics and field questions from economists. Prerequisite(s): ECON 103. Enrollment limited to 29. P. Shea.ECON 221. The World Economy.
Trends and patterns in international trade and finance are discussed in relation to topics such as trade and growth, tariffs and trade restrictions, economic integration, and international economic cooperation and policy. Not open to students who have received credit for ECON 334 or s20. Prerequisite(s): ECON 101 and 103. Open to first-year students. Enrollment limited to 25. [W2] Staff.ConcentrationsInterdisciplinary Programs
This course is referenced by the following General Education Concentrations
This course counts toward the following Interdisciplinary Program(s)
ECON 222. Environmental Economics and Policy.
The preservation of environmental quality and the struggle of people to improve their economic circumstances are often in conflict. This course explores the economic basis of environmental problems and examines alternative policies aimed at reducing environmental degradation. Among the topics are the deficiencies in the market system and existing property-rights system that contribute to environmental problems, cases where public intervention offers the potential for improvement, cases amenable to market-based approaches, and the public-policy tools available to promote environmental goals. Prerequisite(s): ECON 101. Open to first-year students. Enrollment limited to 25. Normally offered every year. L. Lewis.ConcentrationsInterdisciplinary Programs
This course is referenced by the following General Education Concentrations
This course counts toward the following Interdisciplinary Program(s)
ECON 223. Law and Economics.
This course introduces the use of economic methods to examine laws and legal institutions. The fundamental concepts of economics—scarcity, maximization, and marginal analysis—are used to predict the effect of legal rules on behavior, and to evaluate how well a particular rule achieves its intended end. At another level, civil law may be viewed as another system of resource allocation and wealth distribution, as the legal system is often used to craft a remedy when markets fail in their allocative role. Topics may include property law, contract law, accident law, family law, criminal law, and copyright and trademark law. Prerequisite(s): ECON 101. Enrollment limited to 19. [AC] [HS] J. Kurzfeld.Concentrations
This course is referenced by the following General Education Concentrations
ECON 246. Understanding Poverty: Introduction to Development Economics.
This course provides an introduction to development economics and the issues that it attempts to address. The United Nations reports that one in every nine people globally suffered from hunger in 2019. The number of people living in extreme poverty stood at 736 million in 2015, down from nearly 2 billion in 1990. Why are some countries richer than others? What are the policies that help people transition out of poverty and increase their standard of living? Prerequisite(s): ECON 101. Open to first-year students. Enrollment limited to 29. One-time offering. L. Nguyen.ECON 250. Statistics.
Topics include probability theory, sampling theory, estimation, hypothesis testing, and linear regression. Prospective economics majors should take this course in or before the fall semester of the sophomore year. Prerequisite(s): ECON 101 or 103. Open to first-year students. Enrollment limited to 36. Normally offered every semester. [Q] [QF] L. Chicoine.Concentrations
This course is referenced by the following General Education Concentrations
ECON 255. Econometrics.
Topics include multiple regression using time series and cross-sectional data, simultaneous equation models, and an introduction to forecasting. Prerequisite(s): ECON 250 and MATH 105, 106, or 205. Enrollment limited to 39. Normally offered every semester. [Q] [QF] [SR] M. Murray, N. Tefft.Concentrations
This course is referenced by the following General Education Concentrations
ECON 260. Intermediate Microeconomic Theory.
Compares models of perfect competition and market failure, with emphasis on the consequences for efficiency and equity. Topics include consumer choice, firm behavior, markets for goods and inputs, choice over time, monopoly, oligopoly, monopolistic competition, externalities, and public goods. Prerequisite(s): ECON 101 and MATH 105, 106, or 205. Enrollment limited to 45. Normally offered every semester. [Q] [QF] L. He, J. Kurzfeld.Concentrations
This course is referenced by the following General Education Concentrations
ECON 270. Intermediate Macroeconomic Theory.
This study of national income determination includes movements involving consumption, saving, investment, demand for money, supply of money, interest rates, price levels, wage rates, and unemployment. Monetary policy, fiscal policy, inflation, and growth models are considered. Prerequisite(s): ECON 103 and MATH 105, 106, or 205. Enrollment limited to 39. Normally offered every semester. [HS] [Q] [QF] P. Shea, J. Yung.Concentrations
This course is referenced by the following General Education Concentrations
ECON 272. North American Economic History until 1914.
This course considers topics in the economic history of North America with a concentration on Canada, Mexico, and the United States. Specific topics include the role of institutions in explaining divergence, the measurement of living standards, the economic effects of slavery in the United States, the antebellum height/income puzzle, the economic condition of women, and the emergence of financial markets. Prerequisite(s): ECON 101 or 103. Enrollment limited to 29. Staff.EC/PT 284. The Political Economy of Capitalism.
Political economy studies the market and the state as interrelated institutions. This course examines capitalism within its political context from two complementary perspectives. In the first part of the course, students examine the historical evolution of social scientific thinking about the economy, in the process identifying some of the central critiques and defenses of capitalism as a system of social organization. In the second part of the course, students consider political economy topically, addressing a series of policy challenges thrown up by capitalism and considering multiple perspectives on how those challenges should be diagnosed and addressed. Enrollment limited to 29. (Politics: Philosophical, Literary, and Legal Studies.) (Politics: Political Economy.) Staff.Concentrations
This course is referenced by the following General Education Concentrations
ECON 304. Macroeconomic Finance.
This course studies the interaction between macroeconomics and financial markets. The course begins with a modern perspective on money and banking, and then uses this foundation to examine a variety of financial market features that influence macroeconomic performance and policies. The majority of the long run analysis focuses on the relationship between financial development and economic growth. Short run topics include the link between investment and monetary policy, the effect of housing market features on macroeconomic volatility, borrowing and access to credit, and financial market imperfections. Prerequisite(s): ECON 255 and 270. Enrollment limited to 19. Normally offered every year. [CP] [QF] J. Yung.ECON 305. International Financial Stability.
Global financial stability is an essential requirement to ensure sustainable world economic growth and the successful development of emerging markets. This course provides an in-depth understanding of the mechanisms and institutions that rule our international financial system. First, students take a historic look at the evolution of the international monetary system during the last century. Then they study recent failures of the system leading to global financial crises. Special attention is paid to currency, debt, and balance of payments crises. Finally, they review current policy challenges faced by developed and developing nations. Prerequisite(s): ECON 255 and 270. Recommended background: ECON 221. Enrollment limited to 19. Staff.Concentrations
This course is referenced by the following General Education Concentrations
ECON 306. Economics of Strategies in Firms and Markets.
This course investigates the economics of strategies between and within firms. Students consider the applications of game theory in the realm of business practices, including basic principles of game theory, applications of game theory in business practices, and the empirical realities of business organizations. Major topics include monitoring and incentivizing employees, trust and cooperation within groups, patent races and patent adoption, and communications within and across organizations. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. Normally offered every year. [HS] [QF] L. He.ECON 307. The Economics of Pandemics.
This course studies individuals' behavior using epidemiological models and tools from microeconomics. The course begins with the SIR model to analyze determinants of the spread of contagious diseases. Concepts from health economics are introduced to examine the welfare effects of pharmaceutical and non- pharmaceutical interventions. The main analysis of pharmaceutical intervention will focus on the economics of drugs and vaccines development and their effect on achieving herd immunity. The analysis of non-pharmaceutical intervention will focus on the effect of social distancing behavior (in the case of respiratory diseases) and public campaigns (in the case of HIV) on disease spread and economic outcomes. The course will also study the effect of economic policies on the spread of diseases and economic outcomes. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. Normally offered every year. A. Asfaw.ECON 308. Women and Economic Development.
On which margins do differences in women’s and men’s access to or participation in economic activities persist in low- and middle-income countries? Which policies have been successful at closing those gaps, and why? In this course, students begin by exploring gender gaps in economic development access and outcomes, why these gaps matter, and an economic basis for why some of these gaps might occur. Students then examine policies that might close or widen these gaps, and empirical evaluations of such policies using economic principles. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. Normally offered every year. N. Subramanian.ECON 309. Economics of Less-Developed Countries.
The course examines the causes of the poverty of nations, various potential paths to economic growth, and the effects of policies of the rich countries on less-developed countries. Included are such topics as industrialization, the "green revolution," population growth, environmental degradation, trade policies, debt, multinational corporations, and foreign aid. The development of individual countries is examined in light of the great diversity of experiences among developing economies. Prerequisite(s): ECON 255, 260, and 270. Enrollment limited to 19. L. Chicoine, M. Murray.Concentrations
This course is referenced by the following General Education Concentrations
ECON 311. Public Economics.
An analysis of basic issues in the field of public finance. The course covers a wide range of topics, including the welfare implications of expenditure and taxation policies of governments, the economic rationale of governmental provision of goods and services, fiscal institutions in the United States, efficiency and distributive aspects of taxation, effects of taxation on household and firm behavior, intergovernmental fiscal relations, and the public debt. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. [HS] [QF] M. Murray, J. Kurzfeld.ECON 313. A Tale of Two Recessions: 2008 and 2020.
This seminar examines the events of the 2008 recession, as well as its causes and aftermath. Special attention is paid to the housing bubble that preceded the recession, how the crisis in the housing sector spread to the rest of the economy, and the response of monetary, fiscal, and regulatory policies. The seminar focuses both on refining students' theoretical and empirical skills, and on applying them to recent macroeconomic events. Prerequisite(s): ECON 255 and 270. Enrollment limited to 19. [W2] Normally offered every year. P. Shea.ECON 315. Energy Economics.
In this course students develop and use tools of economic analysis to understand contemporary policy issues related to energy. This course focuses on the relationship among economics, science, technology, and energy in the public policy process. Students examine the political economy of global climate change to study this relationship. The goal is to establish a reasonable basis for understanding the science and politics of global climate change. Prerequisite(s): ECON 255, 260, and 270. Course reinstated beginning winter 2021. Enrollment limited to 19. T. Rakitan.ECON 318. Advanced Macroeconomics.
Theories and empirical studies of business cycles: fixed-investment behavior, inventory activity, and monetary fluctuations. The course examines recent work on inflation, expectations, economic growth theory, and techniques in current use for forecasting general economic activity. Prerequisite(s): ECON 255 and 270. Enrollment limited to 19. P. Shea.ECON 325. Prices, Property, and the Problem of the Commons.
An analysis of water resources and fisheries economics. Topics include water allocation, scarcity and pricing, water rights, cost-benefit analysis, valuation, water markets, and problems related to common-property resources such as underground aquifers and fisheries. Economic incentives for pollution control including tradable pollution permit programs for water quality maintenance are also covered. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. [W2] L. Lewis.Concentrations
This course is referenced by the following General Education Concentrations
ECON 333. International Trade.
Classical and modern theories of international trade analyzed in light of current trends and patterns in the world economy. Attention is focused on the gains from trade, the impact of tariffs and other types of trade restrictions on national economic welfare, the trade problems of less-developed countries, and the theory of economic integration. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. Staff.Concentrations
This course is referenced by the following General Education Concentrations
ECON 335. Health Economics.
The health care industry represents a rapidly growing proportion of government expenditures and the U.S. economy as a whole. This course offers theoretical and empirical analyses of health care markets and individual decisions with respect to health and health care. These issues require special consideration due to asymmetric information in insurance markets and the physician-patient relationship; uncertainty in health shocks and expenditures; and interactions among health care providers, insurers, employers, and public health insurance programs. The class considers these issues primarily in a microeconomic framework and explores econometric techniques commonly used in the study of health and health care. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. [HS] [QF] N. Tefft.Concentrations
This course is referenced by the following General Education Concentrations
ECON 339. Industrial Organization.
Theories of the firm are used to explain the organization of economic activity across markets and within firms. The effects of pricing behavior, merger activity, advertising, and research and development on efficiency and social welfare are examined. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. [HS] [QF] L. He.ECON 341. Time Series Econometrics.
This course examines the theory and application of time series econometrics. The course considers issues related to time series data including stationarity, lag structure, and endogeneity, as well as estimation techniques such as vector autoregressions, maximum likelihood, and Bayesian approaches. The course's applications primarily are related to the estimation of macroeconomic models and forecasting macroeconomic policy changes. Prerequisite(s): ECON 255 and 270. Enrollment limited to 19. Normally offered every year. [Q] [QF] [SR] P. Shea, J. Yung.EC/MA 342. Optimal Control Theory with Economic Applications.
Optimal control theory unifies numerous economic problems related to the creation and use of physical capital. This course introduces optimal control theory as a tool for dynamic optimization and applies that theory to a variety of classic economic problems involving capital. Among the economic problems examined are optimal use of a renewable resource, optimal use of a nonrenewable resource, and optimal economic growth when growth begets pollution. The course includes formally proving Pontryagin's maximum principle, which characterizes dynamic optima, in the special case context of common economic problems. Prerequisite(s): MATH 205, 206, and one economics course. Enrollment limited to 19. [QF] M. Murray.Concentrations
This course is referenced by the following General Education Concentrations
ECON 343. International Finance.
A study of the macroeconomics of international economics. The course covers topics in international finance and open-economy macroeconomics, including foreign exchange markets, exchange rate determination and regimes, purchasing power parity, balance of payments, the international capital market, and financial globalization. This course is designed to help students understand the main implications of increasing integration of the world economy. Students learn fundamental theories in the analysis of international macroeconomics, review related empirical evidence, analyze current international macroeconomics issues, and evaluate policy options. Prerequisite(s): ECON 255 and 270.ECON 348. Urban Economics.
Microeconomic tools are applied to analyze cities. Among the topics are the spatial structure of cities, trends in urban development in the United States, urbanization and African development, industrial and residential location choices, rent control, housing subsidies, squatter settlements, racial segregation, and urban finance. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. [HS] [QF] M. Murray.Concentrations
This course is referenced by the following General Education Concentrations
ECON 360. Independent Study.
Students, in consultation with a faculty advisor, individually design and plan a course of study or research not offered in the curriculum. Course work includes a reflective component, evaluation, and completion of an agreed-upon product. Sponsorship by a faculty member in the program/department, a course prospectus, and permission of the chair are required. Students may register for no more than one independent study per semester. Prerequisite(s): ECON 255. Staff.DC/EC 368. Big Data and Economics.
Economics is at the forefront of developing statistical methods for analyzing data collected from uncontrolled sources. Since econometrics addresses challenges in estimation such as sample selection bias and treatment effects identification, the discipline is well-suited for the analysis of large and unsystematically collected datasets. This course introduces statistical (machine) learning methods, which have been developed for analyzing such datasets but which have only recently been implemented in economic research. The course also explores how econometrics and statistical learning methods cross-fertilize and can be used to advance knowledge in the numerous domains where large volumes of data are rapidly accumulating. Prerequisite(s): ECON 255 and ECON 260 or 270. Enrollment limited to 15. [QF] N. Tefft.Concentrations
This course is referenced by the following General Education Concentrations
ECON 373. The Economics of Crime, Punishment, and Rehabilitation.
This seminar explores a rational choice basis for understanding criminal behavior. Rather than framing the behavior of individuals involved in crime as fundamentally different from our own, students consider how environmental, economic, and legal constraints and incentives lead to criminal activity that is individually rational. Students examine empirical evidence of the effectiveness of justice reforms and use it to further understand the role of rational choice in criminal behavior, along with its limitations. Students also engage in community partnerships to directly observe the legal environment and better connect theoretical applications to the institutional and cultural setting. Prerequisite(s): ECON 255 and 260. Enrollment limited to 19. [AC] [QF] J. Kurzfeld.ECON 456. Senior Thesis Seminar.
Building on experience from previous economics courses, students in this course produce new independent research. They consider advanced topics in fields related to the instructors' expertise. Prerequisite(s): two 300-level economics courses. Enrollment limited to 12. Instructor permission is required. [W3] Normally offered every year. [HS] [QF] Staff.ECON 457. Senior Thesis.
Prior to entrance into ECON 457, students must submit for approval a thesis proposal based on work done in a nonintroductory course. Students enroll in ECON 457 in the fall. Honors thesis writers enroll for both ECON 457 and ECON 458. Prerequisite(s): at least two 300-level economics courses. Instructor permission is required. [W3] Normally offered every year. Staff.ECON 458. Senior Thesis.
A continuation of ECON 457 and designed for students completing an honors thesis. Students must submit for approval a thesis proposal based on work done in a nonintroductory course. Prerequisite(s): ECON 457 and at least two 300-level economics courses. Instructor permission is required. [W3] Normally offered every year. Staff.EC/ES s11. In Search of Higher Ground: Sea-Level Rise, Coastal Flooding and the Future of the Eastern Seaboard.
Climate change, increased storm frequency and intensity, and sea-level rise have created an urgent need for adaptation planning for many communities along the U.S. eastern seaboard. In this course students examine adaptation strategies and vulnerability assessments to understand social and economic vulnerability and the complexities of coastal retreat. Utilizing climate adaptation planning tools, mapping technology, and on-the-ground observation, students examine adaptation strategies including managed retreat, buyouts, living shorelines, and and green infrastructure. Students consider the current and future role of FEMA’s national flood insurance program as a major mechanism for incentivizing resilient or reckless coastal development. Based in experiential learning, students engage in discussions with experts, practitioners, and residents in highly vulnerable coastal areas in Maine, as well a ten-day trip to coastal communities in Virginia and North Carolina. Prerequisite(s): ECON 101 or 222, or ENVR 209. Recommended background: ECON 250 or other statistics course. Open to first-year students. Enrollment limited to 18. F. Eanes, L. Lewis.Concentrations
This course is referenced by the following General Education Concentrations