Economics (Econ)

www.econ.iastate.edu
J. Arne Hallam, Chair of Department
Distinguished Professors: Allen, Baumel,
W. Fuller, Harl, Johnson
University Professors: Lapan, Wisner
Professors: J. Adams, R. Adams, Babcock, Beghin, Choi, Deiter, Duffy, Edelman, Edwards, Fletcher, Ginder, Hallam, Hayenga, Hayes, Herriges, Huffman, Jensen, Jolly, Kliebenstein, Kling, Mattila, Meyers, Miranowski, Moschini, Orazem, Otto, Stone, Tesfatsion, Van de Wetering
Distinguished Professors (Emeritus): Fox, Ladd, Luckett
Professors (Collaborators): Hansen
Professors (Emeritus): Beneke, Gratto, Howell, Julius, Kolmer, Meyer, Paulsen, Prescott, Scott, Skadberg, Starleaf, Stephenson, Stoneberg
Associate Professors: Falk, Gallagher, Hennessy, Lawrence, Lence, Quirmbach, Schroeter
Associate Professors (Adjunct): Alexander
Associate Professors (Emeritus): Doak, Pounds
Assistant Professors: Bhattacharya, Bose, Bunzel, Hatcher, Hueth, Kilkenny, Vesterlund, Weninger, Zhao
Assistant Professors (Adjunct): F. Fuller, Luvaga, Wohlgemuth

Undergraduate Study

The department offers work for the degree bachelor of science with a major in agricultural business, and for the degree bachelor of science with a major in economics. For further discussion of programs in agricultural business, see the statement below under College of Agriculture. For programs in economics, see the statement below under College of Liberal Arts and Sciences. Visit our web site at www.econ.iastate.edu

Graduates of the Department of Economics have unique skills that distinguish them from other graduates. They have the ability to think and reason clearly, and can address complex issues using tools and decision making models of economics, mathematics, statistics, as well as concepts from the biological, physical, and social sciences. Graduates develop human relations skills that are essential in the work place and the community. They are able to communicate economic and business concepts to other professionals, collective organizations, governments, and the general public using a variety of means. Graduates understand the interaction of technology, human activity, and the environment. They are able to apply concepts associated with making "optimal" choices among economic alternatives. Graduates are prepared for graduate work in law, economics, and business, as well as the world of work, having learned tools of critical analysis and skills essential to getting and keeping meaningful employment.

College of Agriculture

For the undergraduate curriculum in agricultural business, see College of Agriculture, Curricula.

The agricultural business curriculum prepares students for advanced studies and for careers in agricultural finance, management in agricultural supply and marketing industries, commodity merchandising and research, business research and management, farm and ranch operations, commercial farm management and appraisal, agricultural sales and marketing, agricultural reporting and public relations, agricultural extension, international activities, and government service. A major in agricultural business with a minor in economics is not permitted; however, a double major in economics is permitted.

College of Liberal Arts and Sciences

Candidates for the bachelor of science degree with a major in economics must fulfill requirements established by the College of Liberal Arts and Sciences. (For details of undergraduate curricula in liberal arts and sciences, see College of Liberal Arts and Sciences, Curriculum.)

The economics curriculum prepares students for advanced studies, professional degrees such as law and business administration, and for careers in finance, business and economic research, management, sales and marketing, insurance, brokerage, real estate, labor relations, international development, and government service.

Students majoring in economics are required to take Math 150 and 151 within the mathematical and natural sciences group. Students who plan to take postgraduate work in economics, or who want a more quantitative program should substitute Math 165 and 166, at a minimum for the above sequence. Additional requirements are Statistics 227 and Computer Science 103. Twenty-eight credits in economics are required for the bachelor of science degree. These 28 must include Econ 101, 102, 301, 302, 472, and 492. In addition, one course is required from advanced undergraduate courses in the department. Advanced courses are defined as having either 301 or 302 (or both) as a prerequisite. Economics majors must maintain a C average in 101, 102, 301, and 302, with no grade lower than a C-.

An optional Business Economics track is available for majors who intend to enter the business world after graduation. Requirements are the same as for the regular track except that students take Econ 431 (Managerial Economics) as their advanced course, they may substitute Econ 353 (Money & Banking) or a financial economics course for Econ 302, substitute Stat 328 (Applied Business Statistics) for Econ 472, substitute Engl 302 (Business Communications) for Engl 314, and must take six credits of business courses from an approved list.

Optimal progress for an economics major would be to complete the principles sequence, 101 and 102, in the freshman year. Math 150 and 151 (or the Math 165, 166 sequence) should also be completed in the freshman year, followed by the intermediate theory sequence, Econ 301 and 302, in the sophomore year. Computer Science 103 and Statistics 227 are recommended in the sophomore year. Required advanced courses and electives should be taken in the junior and senior years.

A minor in economics is offered. Courses to be included in the minimum of 15 hours are Econ 101, 102, 301, and 302.

English Proficiency Requirement: The major in economics requires a grade of C or better in each of the following English courses: 104, 105 (or 105H), and 314.

The department participates in the interdepartmental programs in international studies and women's studies.

Graduate Study

The department offers the degrees master of science and doctor of philosophy with majors in economics and agricultural economics. The department also offers minors to students with majors in other departments.

Students do not need to have an undergraduate major in economics or agricultural economics in order to qualify for graduate work in the department. However, students must have completed undergraduate coursework in macroeconomics, microeconomics, statistics, and calculus. Background in matrix algebra is preferred, particularly for the Ph.D.

Candidates for the degree master of science (thesis option) are required to complete satisfactorily 30 credits of acceptable graduate work, including preparation of a thesis.

Candidates for the degree master of science (non-thesis option) may fulfill requirements by satisfactorily completing 32 credits of coursework, including preparation of a creative component.

Programs of study for the doctorate are organized by each student in consultation with the major professor and the individual's committee. Students may select fields of concentration from the following: agricultural economics, econometrics, economic growth and development, financial economics, industrial organization, international economics, labor economics, macroeconomics, natural resource and environmental economics, and public economics.

Each student must complete advanced courses in microeconomic and macroeconomic theory, quantitative methods and econometrics, and two fields from the list above. Students must demonstrate competence in theory by passing qualifying examinations. Examinations may be required in the two field areas. Students must also participate in workshops.

With the cooperation of the College of Law at Drake University, a joint degree consisting of doctor of jurisprudence and master of science in agricultural economics or economics may be pursued concurrently. Other cooperative programs of study may be arranged with the University of Iowa College of Law or other recognized institutions.

The department cooperates in the interdepartmental programs in business administrative sciences and industrial relations, the interdepartmental major in transportation, and interdepartmental minors in gerontology and housing.

Courses open for nonmajor graduate credit: 301, 302, 320, 321, 322, 332, 335, 338, 344, 355, 376, 385, 401, 402, 415, 430, 431, 432, 437, 451, 452, 455, 460, 466, 470, 472, 480.

Courses Primarily for Undergraduate Students

Econ 101. Principles of Microeconomics
(3-0) Cr. 3. F.S.SS. Resource allocation, opportunity cost, comparative and absolute advantage. Supply and demand. Marginal analysis. Theories of production and consumption, pricing, and the market system. Perfect and imperfect competition and strategic behavior. Factor markets. Present discounted value.

Econ 101H. Principles of Microeconomics
(3-0) Cr. 3. F. Resource allocation, opportunity cost, comparative and absolute advantage. Supply and demand. Marginal analysis. Theories of production and consumption, pricing, and the market system. Perfect and imperfect competition and strategic behavior. Factor markets. Present discounted value. Open only to honors students.

Econ 101L. Laboratory in Principles of Microeconomics
(0-2) Cr. 1. F. Prereq: Concurrent enrollment in the appropriate section of 101. Discussion of material typically covered in Econ 101. Application of economic principles to real world problems. Economic principles and basic business management concepts applied to decision-making in agribusiness operations. Guest class visits by academic, government and industry representatives. Field trips to agribusiness firms.

Econ 102. Principles of Macroeconomics
(3-0) Cr. 3. F.S.SS. Prereq: 101 recommended. Measurement of macro variables and general macro identities. Classical models of full employment. Production and growth. Savings and investment. Employment and unemployment. Money, inflation, and price levels. Operation of the U.S. banking system. Fiscal and monetary policy. Elements of international finance.

Econ 102H. Principles of Macroeconomics
(3-0) Cr. 3. S. Prereq: 101 or 101H. Measurement of macro variables and general macro identities. Classical models of full employment. Production and growth. Savings and investment. Employment and unemployment. Money, inflation, and price levels. Operation of the U.S. banking system. Fiscal and monetary policy. Elements of international finance. Open only to honors students.

Econ 110. Orientation in Economics/Agricultural Business
(1-0) Cr. R. F. Orientation course for freshman and new transfer students in agricultural business and economics.

Econ 135. Agricultural Firms, Markets and Prices
(3-0) Cr. 3. F.S. Prereq: 101. Basic concepts and economics principles related to markets for agricultural inputs and products. Overview of current marketing problems faced by farms and agribusinesses, farm and retail price behavior, structure of markets, and the role of agriculture in the general economy and international trade. The implications of consumer preferences at the farm level. Introduction to hedging, futures, and other risk management tools.

Econ 292. Career Seminar
(1-0) Cr. 1. F. Prereq: Classification in economics or agricultural business. Career opportunities in the various industries and government institutions with an emphasis on agribusiness. Required training and skills needed to perform successfully in different types of careers. Factors important in finding and obtaining employment either before or after graduation including personal resumes, interviewing, and letter writing. Offered on a satisfactory-fail grading basis only.

Econ 298. Cooperative Education
Cr. R. F.S.SS. Prereq: Permission of the department cooperative education coordinator; sophomore classification. Required of all cooperative education students. Students must register for this course prior to commencing each work period.

Econ 301. Intermediate Microeconomics
(3-0) Cr. 3 or (3-1) Cr. 4. F.S.SS. Prereq: 101; Math 151 or 165. Theory of consumer and business behavior; optimal consumption choices and demand; theory of firm behavior; costs, production, and supply; competitive and imperfectly competitive markets; theory of demand for and supply of factors of production; general equilibrium analysis. Nonmajor graduate credit.

Econ 302. Intermediate Macroeconomics
(3-0) Cr. 3. F.S. Prereq: 101, 102; Math 151 or 165. Theory of income, employment, interest rates, and the price level; fiscal and monetary policy; budget and trade deficits; money and capital inflows, interest rates, and inflation. Nonmajor graduate credit.

Econ 312. History of Economic Thought
(3-0) Cr. 3. S. Prereq: 101. The logic and explanatory value of received economic doctrines since the middle of the eighteenth century. The reflection of past economic doctrines in contemporary theory and policy. Discussion of major works by Smith, Ricardo, Mill, Marx, Marshall, Walras, Wicksell, and Keynes.

Econ 320. Labor Economics
(3-0) Cr. 3. F. Prereq: 101. Survey of contemporary labor market problems and public policy toward labor. Economic analysis of topics such as labor supply transfer programs, education and training, mobility, labor demand, minimum wages, benefits, occupational safety, unions, income distribution and relative wages, discrimination, unemployment and international competitiveness. Nonmajor graduate credit.

Econ 321. Economics of Discrimination (Same as W S 321.)
(3-0) Cr. 3. F. Prereq: 101. Economic theories of discrimination. Analysis of the economic problems of women and minorities in such areas as earnings, occupations, and unemployment. Public policy concerning discrimination. Nonmajor graduate credit.

Econ 322. Collective Bargaining
(3-0) Cr. 3. S. Prereq: 320. Economic analysis and institutional aspects of unions and collective bargaining. Organizing, bargaining strategy, and contract terms; impact of unions on employment and wages. Public policy toward unions, strikes, and negotiated benefits in both the private and public sectors. Nonmajor graduate credit.

Econ 330. Farm Business Management
(2-2) Cr. 3. F.S. Prereq: 101; Acct 284. Business and economic principles applied to decision making and problem solving in the management of a farm business. Cash flow, partial, enterprise, and whole farm budgeting. Information systems for farm accounting, analysis, and control. Obtaining and managing land, capital, and labor resources. Alternatives for farm business organization and risk management.

Econ 332. Cooperatives
(2-0) Cr. 2. S. Prereq: 101. Survey of cooperative activities with emphasis on agricultural cooperatives, types of cooperatives, methods of organization and operation, principles, legal and tax aspects, cooperative finance, economic possibilities, and limitations of cooperation. Nonmajor graduate credit.

Econ 335. Agricultural Markets
(2-2) Cr. 3. F.S. Prereq: 135, 301, Stat 227. Theory of markets, price determination, and market strategies in the food and agricultural sector. Structure and organization, competition, economies of size and scale, product differentiation, price discriminatin, strategic pricing, monopoly, cooperative and non-cooperative oligopoly, contracts, and other forms of coordination. Equilibrium of markets over space and time. Nonmajor graduate credit.

Econ 336. Agricultural Selling
(3-0) Cr. 3. F. Prereq: 101. Principles of selling with application to agricultural businesses. Attitudes, value systems, and behavioral patterns that relate to agricultural sales. Relationship of sales to marketing, selling strategies, preparing for sales calls, making sales presentations, handling objections, and closing sales. Analysis of the buying or purchasing process. Evaluation of agri-selling as a possible career choice.

Econ 338. Introduction to Agricultural Marketing
Cr. 1 to 3 each time taken. Prereq: 101, 135 recommended for sections B, C, and D. A given topic section can be taken only once. A hands-on application of economic concepts and principles to agricultural commodity markets, marketing methods, risk management, and related agribusiness decision. Nonmajor graduate credit.

A. Dairy marketing

B. Livestock marketing

C. Grain marketing

D. Agricultural marketing alliances (e.g., cooperatives, partnerships, joint ventures)

Econ 344. Public Finance
(3-0) Cr. 3. S. Prereq: 101. The economic role of governments in market economies. Public goods, externalities, income distribution, and income maintenance programs. The effect of taxes on economic behavior, descriptions of the structure of the principal U.S. taxes, and current reform proposals. Nonmajor graduate credit.

Econ 353. Money, Banking, and Financial Institutions
(3-0) Cr. 3. F.S.SS. Prereq: 101, 102. Theoretical and applied analysis of money, banking, and financial markets; interest rates and portfolio choice; the banking industry in transition; the money supply process; the Federal Reserve System and the conduct of monetary policy; macro implications of monetary policy; international finance.

Econ 355. International Economics
(4-0) Cr. 4. F. Prereq: 101, 102. Explanations of causes of international trade and the impact of trade on welfare and employment patterns. Analysis of government policies towards trade, such as tariffs, quotas, and free trade areas. Theory of balance of payments and exchange rate determination, and the role of government policies. Examination of alternative international monetary arrangements. Credit for either 355 or 455, but not both, may be applied to graduation. Nonmajor graduate credit.

Econ 370. Comparative Capitalism and Economic Transitions
(3-0) Cr. 3. F. Prereq: 101, 102. Comparative organization and performance of variants of market capitalism, including alternative government interventions and patterns of economic growth and income distribution; analysis of planning, incentives, and enterprise behavior in variants of socialism; study of comparative economic transformations of socialist economies; assessment of future capitalism and social market economies; includes examination of the United States, Europe, Japan, Russia, and China.

Econ 376. Urban, Rural, and Regional Economics
(3-0) Cr. 3. F. Prereq: 101. Firm location with respect to regional resources, transport, scale economies, externalities, and policies. Measures of local comparative advantage and specialization. Spatial markets. Population location considering jobs, wages, commuting, and local amenities. Business, residential, and farm land use and value. Migration. The product cycle and other theories of rural and urban development. Market failures, regulation, firm recruiting, local public goods and finance, and development policies. Nonmajor graduate credit.

Econ 380. Environmental and Resource Economics (Same as Env S 380.)
(3-0) Cr. 3. F.S. Prereq: 101. Natural resource availability, use, conservation, and government policy, including energy issues. Environmental quality and pollution control policies.

Econ 381. International Economic History (Same as Hist 381.)
See History.

Econ 382. United States Economic History (Same as Hist 382.)
See History.

Econ 385. Economic Development
(3-0) Cr. 3. S. Prereq: 101, 102. Current problems of developing countries, theories of economic development, agriculture, and economic development, measurement and prediction of economic performance of developing countries, alternative policies and reforms required for satisfying basic needs of Third World countries, interrelationships between industrialized countries and the developing countries, including foreign aid. Nonmajor graduate credit.

Econ 397. Internship
Cr. 2 each time taken; maximum of 4. F.S. Prereq: Permission of instructor and classification in agricultural business or economics. Students complete a research report, based on their internship or approved work experience, that examines chosen topics in management, marketing or finance. Offered on a satisfactory-fail grading basis only.

Econ 398. Cooperative Education
Cr. R. F.S.SS. Prereq: Permission of the department cooperative education coordinator; junior classification. Required of all cooperative education students. Students must register for this course prior to commencing each work period.

Econ 401. Topics in Microeconomics
(3-0) Cr. 3. F. Prereq: 301, Stat 227. Advanced treatment of selected topics from one or more of the following areas: household production models, factor markets, game theory and imperfect competition, general equilibrium, intertemporal choice, asset markets, income distribution, externalities and public goods, etc. Nonmajor graduate credit.

Econ 402. Topics in Macroeconomics
(3-0) Cr. 3. S. Prereq: 301, 302, Stat 227. Advanced treatment of selected topics from one or more of the following areas: business cycle theory, growth theory, fiscal and monetary policy, coordination issues, open economy macroeconomics, and financial economics. Nonmajor graduate credit.

Econ 415. Economics of Imperfect Competition, Antitrust and Regulated Industries
(3-0) Cr. 3. S. Prereq: 301; Math 151 or 160 or 165. The economic and strategic analysis of monopoly and oligopoly, predatory pricing, cartels and price-fixing, entry barriers and entry deterrence, vertical integration, technological change, and bid-rigging and other anticompetitive practices. The economic foundations of antitrust policy and industry regulation. Nonmajor graduate credit.

Econ 430. Advanced Farm Business Management
(3-2) Cr. 4. F. Prereq: 330. Effective use of strategic planning, decision methods, and computer assistance for solving farm problems. Applications of economic and management theory to analyze farm business decisions using efficiency measures to assess current resource use and direct the farm business analysis, planning, and tax process. Computers as aids in the decision process. Nonmajor graduate credit.

Econ 431. Managerial Economics
(3-0) Cr. 3. S. Prereq: 301. Topics including application of microeconomic theory of the firm and markets; organizational incentives and efficiency; pricing; market structure and strategies; role of information and decision making under uncertainty; business investment. Credit for either 431 or 432, but not both, may be applied to graduation. Nonmajor graduate credit.

Econ 432. Agribusiness Management
(3-0) Cr. 3. F. Prereq: 335. An advanced topics course in agribusiness management. Students explore the a variety of topics such as determinants of the optimal organization of the firm, managing in different market structures, game theory approaches to strategizing, tax management strategies, incentive structures in a firm, instruments in firm pricing strategies, the economics of information, network economics, managerial decisions for internet oriented firms, the economics of regulation, and decision making under uncertainty. Credit for either 431 or 432, but not both, may be applied to graduation. Nonmajor graduate credit.

Econ 437. Applied Commodity Marketing and Price Analysis
(3-0) Cr. 3. S. Prereq: 335. Applied commodity price analysis and forecasting; futures market theory and hedging strategy evaluation; options theory and strategy evaluation. Nonmajor graduate credit.

Econ 451. Agricultural Law
(3-2) Cr. 4. F. Prereq: Senior classification. The legal framework impinging upon decision-making by farm firms, families, and individuals, real and personal property, contracts, secured transactions, negotiable instruments, debtor-creditor relations, bankruptcy, organization of farm firms, intergeneration property transfers, trusts, insurance, liabilities, environmental law, federal and state regulatory powers. Nonmajor graduate credit.

Econ 452. Legal Issues in Agriculture
(2-0) Cr. 2. Prereq: 101. Designed for off-campus programs in agriculture. Offered as demand warrants. The legal framework impinging on decision-making by individuals, families, and firms in agriculture; ownership and transfer of real property; commercial law including secured transactions, sales, and negotiable instruments; bankruptcy; income tax planning and management; estate and business planning for the farm family; civil liabilities; water law; environmental law; government regulation of agriculture. Nonmajor graduate credit.

Econ 455. International Trade and Finance
(4-0) Cr. 4. S. Prereq: 301. Rigorous treatment of theories of international trade and its impact on domestic and world welfare and the distribution of income. Theoretical analysis of government policies towards trade, such as quotas, tariffs and free trade areas. Theory of exchange rate and balance of payments determination and the role of government policy; study of efficiency of the foreign exchange market. Examination of alternative international monetary arrangements. Credit for either 355 or 455, but not both, may be applied toward graduation. Nonmajor graduate credit.

Econ 460. Agricultural, Food, and Trade Policy
(3-0) Cr. 3. F.S. Prereq: 301. Description and analysis of economic problems of U.S. agriculture. Explanation and economic analysis of government policies and programs to develop agriculture, conserve agricultural resources, address consumer food concerns, stabilize farm prices, and raise farm incomes. The influence of macropolicy, world economy, and international trade on U.S. agriculture. Nonmajor graduate credit.

Econ 466. Agricultural Finance
(3-0) Cr. 3. S. Prereq: 301, Stat 227; Fin 301 and Econ 353 recommended. Financial analysis of agricultural businesses; liquidity, capital structure, and growth of agricultural firms; risk and return; capital budgeting methods; analysis of land investments, leasing, and costs of credit; financial intermediation and major financial institutions for agriculture; credit scoring, loan pricing, and asset-liability management techniques by financial intermediaries; public policies affecting agricultural credit markets. Nonmajor graduate credit.

Econ 470. Public Choice (Same as Pol S 470.)
(3-0) Cr. 3. Alt. F., offered 2001. Prereq: 101. Application of economics to political science in the study of nonmarket decision-making. Behavior of bureaucrats, elected officials, and voters. Market failure, collective action, representative democracies, direct democracies, logrolling, voter paradoxes, game theory, and terrorism. Nonmajor graduate credit.

Econ 472. Introductory Econometrics
(4-0) Cr. 4. F. Prereq: 301, 302, Stat 227. Introduction to the models and methods used to estimate relationships and test hypotheses pertaining to economic variables. Simple and multiple regression analysis; stochastic regressors; heteroskedasticity; autocorrelation; measurement error; simultaneous equations. Nonmajor graduate credit.

Econ 480. Intermediate Environmental and Resource Economics
(3-0) Cr. 3. S. Prereq: 301. Theories of natural resource utilization and allocation. Externalities, public goods, and environmental quality. Planning natural resource use and environmental quality. Methodologies for analyzing natural resource and environmental problems. Nonmajor graduate credit.

Econ 490. Independent Study
Cr. 1 to 5 each time taken. Prereq: Junior or senior classification, 14 credits in economics. Students in the College of Agriculture may use no more than 6 credits of Econ 490 toward the total of 128 credits required for graduation; students in the College of Liberal Arts and Sciences may count no more than 9 credits of Econ 490 toward graduation. Offered on a satisfactory-fail grading basis only.

                H. Honors.

Econ 492. Graduating Senior Survey
(1-0) Cr. R. F.S. Prereq: Graduating senior. Final preparations for graduation. The final stages of job searching, interviewing, letter writing, and resume preparation. Outcomes assessment information from graduating seniors including opinion surveys, instructor/advisor/course evaluations, exit interviews, student accomplishment surveys, job placement surveys, and comprehensive skills examinations. Departmental recognition of graduating seniors. Life as an alumnus - expectations and obligations. Convocation and commencement information. Offered on a satisfactory-fail grading basis only.

Econ 493. Workshops
Cr. 1 to 3 each time taken. No more than 6 credits may be applied towards graduation. Prereq: Permission of instructor. Offered on a satisfactory-fail grading basis only.

Econ 496. Economics Travel Course
Cr. 1 to 3 each time taken, maximum of 6. Prereq: Sophomore status; permission of instructor. Tour and study of international agricultural and/or nonagricultural economies, markets, and institutions. Locations and duration of tours will vary. Limited enrollment.

Econ 498. Cooperative Education
Cr. R. F.S.SS. Prereq: Permission of the department cooperative education coordinator; senior classification. Required of all cooperative education students. Students must register for this course prior to commencing each work period.

Courses Primarily for Graduate Students, Open to Qualified Undergraduate Students

Econ 500. Quantitative Methods in Economic Analysis I
(4-0) Cr. 4. F. Prereq: 301, 1 year of calculus, Stat 401 or equivalent, and permission of Director of Graduate Studies. Economic applications of selected mathematical and statistical concepts: linear models and matrix algebra; differential calculus and optimization; integral calculus and economic dynamics; probability distributions, estimation, and hypothesis testing in the analysis of economic data.

Econ 501. Microeconomics
(4-0) Cr. 4. F. Prereq: 301, credit or enrollment in 500 or equivalent background in calculus and statistics. The theory of the consumer, theory of the firm, perfect and imperfect competition, welfare economics, and selected topics in general equilibrium and uncertainty. This is a Master's level course.

Econ 502. Macroeconomics
(4-0) Cr. 4. F. Prereq: 302, credit or enrollment in 500 or equivalent background in calculus and statistics. Models of aggregate supply and demand, theories of consumption and investment, money supply and demand, inflation, rational expectations, stabilization policy, financial markets, and international finance. This is a Master's level course.

Econ 509. Mathematical Programming in Agricultural and Applied Economics
(3-0) Cr. 3. Prereq: 3 credits in economics at the 400 level or above. Linear programming and the Simplex method; sensitivity analysis and parametric programming; goal programming, stochastic programming, and other extensions of linear programming; input-output and interregional models; nonlinear and quadratic programming to reflect production, marketing, and financial risk; comparison with other criteria for making risky decisions; integer programming and investment analysis; use of recursive and dynamic programming in long-term planning and farm firm growth models.

Econ 515. Industrial Organization I
(3-0) Cr. 3. F. Prereq: 501 or 601. Theoretical and empirical studies of industry structure, conduct, and performance. Introduction to game theory. Monopoly, oligopoly, monopolistic competition, collusion, and cartels. Contestable markets. Entry barriers and deterrence. Concentration and performance. Price discrimination. Product differentiation and spatial markets.

Econ 520. Labor Supply and Human Capital Formation
(3-0) Cr. 3. Alt. S., offered 2003. Prereq: 501 or 601. Labor supply decisions and empirical analysis for agricultural operators and other self-employed and wage-earning households; multiple job holding; resource allocation in productive households; human capital formation by households, firms, and public institutions, which includes schooling, on-the-job training, migration, health, research, raising of children, and implications for household income and welfare; applications to problems in rural areas of developing and developed countries.

Econ 521. Labor Markets
(3-0) Cr. 3. Alt. SS., offered 2003. Prereq: 501 or 601. Topics such as labor demand; market determination of wages and employment; compensation, contracts and incentives in the workplace; occupational safety; self-sorting; role of technology on employment and wages by skill level; analysis of government intervention in the labor market; discrimination; analysis of unemployment.

Econ 530. Advanced Farm Management
(2-0) Cr. 2. Prereq: 6 credits in economics. Offered off campus as demand warrants. Management techniques of planning, implementation, and control as applied to farm businesses. Quantitative tools as applied to agricultural decision-making. Accounting control concepts and decision theory as used to manage agricultural enterprises. Designed for master of agriculture program only.

Econ 532. Business Economics
(3-0) Cr. 3. Prereq: 101 and enrollment in MBA or BAS program; not for economics majors. Applications of microeconomic theory and decision analysis. Demand analysis, production and cost analysis, forecasting, pricing, market structures and strategy, capital investment analysis, decision-making under uncertainty, government and business.

Econ 533. Economic and Business Decision Tools (Same as BusAd 533.)
(3-0) Cr. 3. Prereq: 501 or 532; not for Ph.D. students in the economics program. Team taught by faculty in the Department of Economics and the College of Business, this course focuses on applied economic and business tools decision making. The topics include: Monte Carlo analysis with applications to option pricing and insurance mechanism design, portfolio analysis using existing standard spreadsheet software and add-ons, dynamic programming tools for inventory management and sequential decisions, discrete choice modeling and statistical bootstrapping, and financial performance evaluation using commercially available software.

Econ 535. Agricultural Marketing
(3-0) Cr. 3. F. Prereq: 501 or 532 or 601. Analysis of agricultural marketing systems focusing on their structure, pricing and coordination mechanisms (including futures markets), and performance. Government market intervention and regulation methods.

Econ 536. Applied Agricultural Marketing
(2-0) Cr. 2. Prereq: 6 credits in economics. Off campus. Offered as demand warrants. Market structure and performance in the food and agricultural sector. Vertical coordination systems and pricing systems in agriculture. Market information and price forecasting. Alternative marketing methods and strategies for major Iowa agricultural commodities including the use of futures market. Designed for master of agriculture program only.

Econ 537. Commodity Markets: Analysis and Strategy
(3-0) Cr. 3. S. Prereq: 501 or 532 or 601, Econ 571 or Stat 328. Analysis of exchange-traded and over-the-counter commodity markets, their functions and performance. Evaluation of hedging, speculation, and artitrage strategies. Valuation of derivatives. Efficiency and the role of information in commodity markets. Market regulation. Price forecasting.

Econ 538. Econometric Statistics (Same as Stat 538.)
See Statistics.

Econ 539. Game Theory (Same as Stat 539.)
See Statistics.

Econ 544. Public Economics I
(3-0) Cr. 3. F. Prereq: 501 or 601. Pure public goods and impure public goods; externalities; open access and common property resources; market and club provision of excludable public goods; Lindahl and Nash equilibria; collective action.

Econ 545. Public Economics II
(3-0) Cr. 3. S. Prereq: 501 or 601. Preference revelation mechanisms; voting models, experiments and public economics; nonprofit sector; optimal taxation; partial and general equilibrium analysis of tax shifting and tax incidence, excess burden of tax; tax competition.

Econ 553. Applied Research in Monetary and Macroeconomics
(3-0) Cr. 3. F. Prereq: 502, 571. Application of economic theory to the analysis of contemporary issues in macroeconomics, monetary economics, and financial economics. This is a Master's level course.

Econ 555. Issues in International Economics
(3-0) Cr. 3. S. Prereq: 501, 502. Theories of international trade and finance. Emphasis on current policy issues in international economics. This is a Master's level course.

Econ 560. Agricultural Policy
(3-0) Cr. 3. S. Prereq: 501 or 601. Effects of and motivation for government intervention in agriculture. Review of instruments of intervention; efficiency of redistribution. Trade and stabilization policies. Effects of environmental policies on agriculture.

Econ 563. Issues in Government Policy Affecting Agriculture
(2-0) Cr. 2. Prereq: 101. Off campus. Offered as demand warrants. Government policy and the policy-making process as it affects food, agriculture, and trade. Description and analysis of government policies and programs designed to address production agriculture problems and consumer food concerns. Evaluation of the interaction of agriculture and world trade as affected by U.S. and foreign government policies. Designed for master of agriculture program only.

Econ 566. Advanced Agricultural Finance
(3-0) Cr. 3. Prereq: 501 or 601; Fin 505 recommended. Modern financial theories of the firm applied to agriculture; models of capital structure of farm firms; investment under uncertainty; capital asset pricing in agriculture; land pricing; agency problems and financial contracting; formal and informal financing of agricultural production, including equity, debt, leasing, and other contractual arrangements; relationship between real and financial decisions; market imperfections in rural financial markets, and government intervention.

Econ 571. Intermediate Econometrics
(3-0) Cr. 3. S. Prereq: 500. Single and multiple equation regression models; dummy explanatory variables; serial correlation; heteroskedasticity; distributed lags; qualitative dependent variables; simultaneity. Use of econometric models for tests of economic theories and forecasting.

Econ 573. Econometrics I
(4-0) Cr. 4. F. Prereq: 501 and Stat 447 or 542. Specification, estimation, and testing of single and multiple equation models of economic processes; qualitative choice and limited dependent variable models; examination and evaluation of empirical studies in the economics literature.

Econ 574. Econometrics II
(3-0) Cr. 3. S. Prereq: 573. Large sample properties of estimators and large sample inference; dynamic models and instrumental variables; identification, estimation, and evaluation of systems of simultaneous equations; introduction to time series methods and applications, including alternative variance specifications.

Econ 576. Spatial Economics
(3-0) Cr. 3. S. Prereq: 501. Analysis of location choice by firms, employees, and households emphasizing the role of spatial variations in agglomeration economies, economies of scale, distance, transport, endowments, amenities, and local government. Models of land use, urban form, spatial competition, central place theory, and migration. Techniques of discrete choice analysis, statistical analysis of categorical data, urban system modeling, and interregional computable general equilibrium.

Econ 581. Advanced Environmental Economics
(3-0) Cr. 3. S. Prereq: 501 or 601. Interrelationships of natural resource use and the environment. Applied welfare and benefit-cost analyses. Externalities and pollution abatement. Nonmarket valuation of resources. Property rights. Legal and social constraints. Policy approaches.

Econ 583. Water Resources (Same as W Res 583.)
(3-0) Cr. 3. Alt. F., offered 2001. Prereq: Graduate classification; not for economics majors. Analysis of water resource management issues from economic, legal, political, and sociological perspectives. Topics include rational water allocation systems, market failure, investment, pollution control strategies, and resource management. Administered by Economics in cooperation with Political Science and Sociology.

Econ 585. Economic Growth and Development
(3-0) Cr. 3. Alt. S., offered 2002. Prereq: 501 and 502 or 601 and 602. Performance and problems of developing countries in relation to growth, employment, structural change, and human development; theories and paradigms of development; theories and sources of long-run economic growth; fertility and population growth; income distribution and poverty; land reforms and agricultural development; rural-urban migration; labor markets; corruption and development; information problems; banking and financial intermediation; role of monetary and fiscal policies in development.

Econ 586. Microfoundations of Economic Growth and Development
(3-0) Cr. 3. Alt. F., offered 2001. Prereq: 501 and 502 or 601 and 602. Models of household and firm/farm behavior in developing countries with missing markets. Quantitative policy analysis. Measures of comparative advantage, distortions and protection. Aggregation of distortions into trade restrictiveness indicies. Political economy of protection. Trade and environment interface in developing economies. Coordination and piecemeal reforms of trades and environmental policies..

Econ 590. Special Topics
Cr. 1 to 5 each time taken. Offered on a satisfactory-fail grading basis only.

Econ 599. Creative Component
Cr. 1 to 5. Offered on a satisfactory-fail grading basis only.

Courses for Graduate Students, major or minor.

Econ 600. Quantitative Methods in Economic Analysis II
(3-0) Cr. 3. F. Prereq: 500 or equivalent background in calculus. Introduction to elements of nonlinear programming, comparative static analysis, difference and differential equations, dynamic optimization, and game theory useful for micro- and macroeconomic modeling.

Econ 601. Microeconomic Analysis I
(4-1) Cr. 4. F. Prereq: 301, previous or concurrent enrollment in 600 and permission of Director of Graduate Studies. Economic theory and methodology; theory of consumer behavior, theory of the competitive firm, supply and factor demand; duality relations in consumer and producer theory, partial equilibrium analysis, stability and comparative statics; introduction to game theory; theory of imperfect competition.

Econ 602. Macroeconomic Analysis
(4-1) Cr. 4. S. Prereq: 301, 302, previous or concurrent enrollment in 600 and permission of Director of Graduate Studies. Analysis of static and dynamic models of aggregate economic activity with an emphasis on the role of fiscal and monetary policies on the determination of GNP and its distribution, the price level, and labor employment.

Econ 603. Microeconomic Analysis II
(4-1) Cr. 4. S. Prereq: 601, 602 and permission of Director of Graduate Studies. General equilibrium analysis, efficiency, and welfare; market failures, externalities, and the theory of the second best; uncertainty and economic theory; producer supply and factor demand decisions under uncertainty; portfolio and savings decisions under uncertainty; value of information; applications of game theory to economic analysis.

Econ 604. Advanced Macroeconomic Analysis
(4-1) Cr. 4. F. Prereq: 601, 602 and permission of Director of Graduate Studies. Introduction to microtheoretic-based dynamic and stochastic macroeconomic models applied to the study of economic growth, business cycles, and governmental policies.

Econ 605. Advanced Topics in Microeconomics
(3-0) Cr. 3 each time taken. Prereq: 603, 604. Selected topics in microeconomic theory of current significance to the profession.

Econ 606. Advanced Topics in Macroeconomics
(3-0) Cr. 3 each time taken. Prereq: 603, 604. Selected topics in macroeconomic theory of current significance to the profession.

Econ 616. Industrial Organization II
(3-0) Cr. 3. Alt. S., offered 2003. Prereq: 515, 603. Theoretical and empirical studies of industry structure, conduct, and performance. Review of game theory. Technological innovation and diffusion. Mergers. Vertical integration and contractual alternatives. Antitrust. Regulation and regulated industries.

Econ 618. Noncooperative Game Theory and Information Economics
(3-0) Cr. 3. Alt. S., offered 2003. Prereq: 603 or 501 and permission of instructor. Noncooperative analysis of normal and extensive form games, mechanism design, and implementation. Particular applications will be bargaining, auctions, signaling, reputation building, political economy, and voting.

Econ 635. Agricultural Price Analysis
(3-0) Cr. 3. Prereq: 601. Application of price theory to agricultural market analysis. Agricultural product supply and input demand. Uncertainty and risk, expectations, and supply dynamics. Retail demand and derived demand for farm products. Competitive equilibrium of agricultural markets. Vertical market relations and marketing margins. Storage and price relations over time. Price discovery and risk allocation with futures markets. Industrial organization of agricultural markets and imperfectly competitive models of the agricultural and food industry.

Econ 639. Consumption and Demand Analysis
(3-0) Cr. 3. Prereq: 601. Analysis of demand with emphasis on the theory of consumption decisions, the development and estimation of models, and the assessment and interpretation of empirical results. Demand systems, flexible functional forms, separability and aggregation, dynamic models. Household consumption models, demographics, equivalence scales, standard of living measurement, and quality of goods. Empirical applications with emphasis on food demand. Extensions and policy issues related to marketing regulations, food assistance programs, poverty, nutrition, food safety, and health.

Econ 640. Advanced Topics in Agricultural Economics
(3-0) Cr. 3 each time taken. Prereq: 603. Selected topics in agricultural economics of current significance to the profession.

Econ 641. Production Economics with Agricultural Applications
(3-0) Cr. 3. Prereq: 601. Advanced treatment of agricultural production and supply; estimation of production functions, functional forms, and duality; alternative representations of technology, including distance, cost, revenue, and profit functions. Technological change and productivity; parametric and nonparametric estimation of technology and supply relationships; dynamic models; decisions under uncertainty; stochastic production relationships, strategic uncertainty, the role of information and insurance.

Econ 653. Financial Economics
(3-0) Cr. 3. F. Prereq: 603, 574. Recommended: 674, Stat 551. Review of decision-making under uncertainty. Portfolio Theory. Theoretical foundations of asset valuation models: capital asset pricing model (CAPM), arbitrage pricing theory (APT), representative agent models, pricing of derivative securities. Complete and incomplete asset markets, credit markets, financial intermediaries, the role of government in the financial sector. Market frictions, crashes, bubbles. Applications of asset valuation models, with emphasis on their testable implications.

Econ 654. Advanced Topics in Financial Economics
(3-0) Cr. 3 each time taken. Prereq: 653. Selected topics in financial economics of current significance to the profession.

Econ 655. International Trade
(3-0) Cr. 3. F. Prereq: 603. Modern theory of international trade; welfare and distributional aspects of trade and tariffs. The interdependence of international trade and economic growth. Optimal trade policies in the presence of such distortions as unemployment, monopolies and cartels, balance of payments problems, infant industries, and common market areas.

Econ 657. International Finance
(3-0) Cr. 3. S. Prereq: 604. The theory of exchange rate and balance of payments determination; open-economy macroeconomic issues; and current account adjustment. Emphasis on the current empirical literature concerning the efficient market theory of the foreign exchange market.

Econ 660. Welfare Theory
(3-0) Cr. 3. Prereq: Credit or enrollment in 603. Notions of economic efficiency, equivalent, and compensated variation measures, consumer and producer surplus, market failures, social choice, path independence, compensated demand curves, cost-benefit evaluation, and public choice.

Econ 674. Macroeconometrics
(3-0) Cr. 3. F. Prereq: 601, 602, 571. Balanced treatment of time-series econometric techniques and their application to macroeconomics and financial markets. Techniques include GARCH and ARCH-M models, unit-root tests, nonlinear adjustment models, structural VARs, and cointegration tests.

Econ 675. Advanced Topics in Econometrics
(3-0) Cr. 3 each time taken. Prereq: 538 or 574, Stat 543 recommended. Advanced treatment of issues important in econometrics. Topics chosen from asymptotic theory, nonlinear estimation, Bayesian and robust econometrics, econometric time series, limited dependent variables and censored regression models, nonparametric and semiparametric methods, bootstrapping and Monte Carlo techniques, etc.

Econ 680. Advanced Resource Economics
(3-0) Cr. 3. Alt. F., offered 2001. Prereq: 603. Dynamic allocation of scarce, exhaustible, and renewable natural resources, including minerals and energy, soil, water, forests, and fish. Social versus private decisions. Market and nonmarket considerations. Technological change. Regulation. Dynamics and uncertainty.

Econ 690. Advanced Topics
Cr. 1 to 5 each time taken. Offered on a satisfactory-fail grading basis only.

Econ 693. Workshops. Cr. 1 to 3 each time taken. Prereq: 6 graduate credits in chosen field. Offered on a satisfactory-fail grading basis only.