Iowa State University

Iowa State University

2007-2009 Courses and Programs

Iowa State University Catalog

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Economics (Econ)

200 |300 |400 |Graduate Courses | www.econ.iastate.edu

J. Arne Hallam, Chair of Department
Distinguished Professors: W. Huffman
Distinguished Professors (Emeritus): Baumel, Fox, Fuller, Harl, Johnson, Ladd, Luckett
University Professors: Lapan, Orazem, Wisner
Professors: Babcock, Beghin, Choi, Deiter, Duffy, Edelman, Edwards, Falk, Ginder, Hallam, Hayes, D. Hennessy, Herriges, Hoffman, Jensen, Jolly, Kliebenstein, Kling, Koppenhaver, Lawrence, Lence, Macdonald, Miranowski, Moschini, Otto, Tesfatsion, Volij, Wang
Professors (Emeritus): J. Adams, R. Adams, Faden, Fletcher, Hayenga, Julius, Kolmer, Mattila, Meyer, Meyers, Paulsen, Prescott, Skadberg, Starleaf, Stephenson, Stone, Vandewetering
Associate Professors: Bhattacharya, Bunzel, Frankel, Gallagher, Garasky, Gundersen, Hendricks, Kreider, Quirmbach, Schroeter, Tobias, Weninger, Zhao, Zheng
Professors (Emeritus): Doak
Assistant Professors: Doyle, Marcoul, Oviedo, Singh
Assistant Professors (Adjunct): Fuller, H. Hennessy, S. Huffman, Langinier
Senior Lecturers: Alexander, Luvaga

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 business economics, see the statement below under College of Business. 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 agricultural business and economics is permitted.

College of Business

For the undergraduate curriculum in business economics, see College of Business, Curricula.

The major in business economics provides a high-quality education with a balanced emphasis in both business and economics. Graduates from the business economics major possess a unique mix of analytical and applied business skills well-suited for employment in upper level management and public service positions. Graduates also have solid preparation for graduate studies in law, economics, and in Master of Business Administration (MBA) programs. A double major in business economics and agricultural business is not permitted; a double major in business economics and economics is not permitted, either. A major in business economics with a minor in economics is not 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, insurance, brokerage, real estate, labor relations, international development, and government service.

Students majoring in economics are required to take either Math 165 and 166 or Math 165 and Econ 207 or Math 160 and Econ 207 within the mathematical and natural sciences group. Students who plan to take postgraduate work in economics should take Math 165 and 166 for the above sequence. Additional requirements are Statistics 226 and 326 and Computer Science 103 or equivalent. Twenty-eight credits in economics are required for the bachelor of science degree. Students must complete the following courses in Economics: Econ 101, 102, 301, 302, 371, three Economics courses numbered 400-489, plus one additional Economics course numbered 300 or higher. Economics majors must maintain a C average in 101, 102, 301, and 302, with no grade lower than a C-.

Optimal progress for an economics major would be to complete the principles sequence, Econ 101 and 102, in the freshman year. Math 165, 166, or Math 165, Econ 207, or Math 160, Econ 207 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 226 and 326 are recommended in the sophomore year.

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

Communication Proficiency Requirement: The major in economics requires a grade of C or better in each of the following English courses: 150, 250 (or 250H), and 314.

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

Learner Outcome Goals

In general, our goal is that all Department of Economics graduates at Iowa State are able to use economic reasoning to think critically; to make decisions and to communicate effectively; to be ethical; to respect the environment, and to be multi-culturally and internationally aware.

Specifically, with respect to:

1. Critical Thinking, all graduates of the Department of Economics are able to:
a) distinguish factual statements from opinions or value judgements
b) use scientific methods to analyze and interpret data
c) distinguish causal relationships from correlations
d) determine the accuracy of statements
e) understand the usefulness of abstractions and models
f) distinguish simplifying and critical assumptions from unnecessary details
g) objectively critique competing viewpoints to make reasoned judgements

2. Economic Reasoning:
a) distinguish positive (what is) and normative (what should be) economics
b) determine the opportunity cost of alternatives
c) apply the concepts of comparative advantage, specialization, and exchange to analyze resource allocation issues
d) identify the conditions under which markets allocate resources efficiently or markets fail
e) apply marginal economic analysis to solve problems
f) conduct comparative static analyses
g) pose and test hypotheses

3. Decision Making/Problem Solving:
a) work effectively alone and in teams to solve problems
b) use scientific methods to identify optimal choices among economic alternatives
c) identify decision-makers, objectives, choice variables, incentives, and constraints
d) identify and apply the solution technique best suited for the specific problem
e) understand how conclusions depend on assumptions

4. Comunications:
a) communicate economic and business concepts to professionals, organizations, governments, and the general public
b) obtain information by accessing electronic or traditional media, listening, or by observation
c) use a computer and statistical methods to organize and analyze data
d) write clearly and effectively
e) speak clearly and persuasively
f) prepare and present visual information effectively

5. Ethics:
a) develop ethical perspectives and sense of moral responsibility and values
b) discuss contemporary ethical and moral issues in professional and private life
c) critically evaluate their own arguments and those of others

6. Environment Awareness:
a) understand the physical and biological properties of the environment and ecological systems
b) understand how economic activity, such as business or agriculture, impacts the environment

7. International/Multi-Cultural Awareness:
a) understand cultural diversity within our own nation
b) understand cultural diversity around the world
c) know the different economic or agricultural systems in other countries
d) have human relation skills essential in the work place and the community

Graduate Study

The department offers work toward 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, calculus, and matrix algebra. Some background in math courses emphasizing logic and proofs 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, financial economics, industrial organization, international economics, human resources, macroeconomics, and environmental and resource 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. 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 graduate majors in transportation and sustainable agriculture, and the interdepartmental minor in gerontology.

Courses open for nonmajor graduate credit: 301, 302, 308, 320, 321, 332, 344, 355, 371, 376, 385, 401, 402, 415, 416, 430, 431, 437, 455, 457, 458, 460, 466, 480.

Courses primarily for undergraduate students

Econ 101. Principles of Microeconomics. (3-0) Cr. 3-4. 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. Recitation section required for 4 credits.

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. Field trips to business 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. 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 Agricultural Business. (1-0) Cr. 0.5. F. Orientation course for freshman and new transfer students in agricultural business.

Econ 207. Applied Economic Optimization. (2-2) Cr. 3. S. Prereq: Math 151, 160, 165 or equivalent. Application of linear algebra, calculus and unconstrained and constrained optimization techniques to economic problems. Learning outcomes include the ability to (i) identify the objective, decision variables and constraints in economic decision problems, (ii) represent elements of an economic problem in simple mathematical models, (iii) identify and apply mathematical tools that can be used to solve the problems, (iv) identify the strengths and limitations of the solution method, and (v) interpret the economic meaning and implications of the solution.

Econ 235. Introduction to Agricultural Markets. (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, food marketing channels, food quality and food safety, and the role of agriculture in the general economy. 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. 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.

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. 3-4. F.S.SS. Prereq: 101; Math 160 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 160 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 308. Agent-Based Computational Economics. (3-0) Cr. 3. Prereq: 101. Computational study of economies as evolving systems of autonomous interacting agents. Key ideas from game theory and complex adaptive systems theory for modeling the adaptation, learning, and co-evolution of economic agents in decentralized market economies. Evolution of behavioral norms and interaction networks. Building agent-based computational laboratories for the experimental study of market protocols and agent learning processes. Illustrative economic applications (e.g., financial markets, labor markets, agricultural markets, electricity markets, auction markets, automated Internet markets, collective usage of common-pool resources). 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 and demand, work incentives and compensation, transfer programs, education and training, mobility, minimum wages, unions, working conditions, benefits, discrimination, unemployment, wage differentials across regions, and labor markets in other countries. Nonmajor graduate credit.

Econ 321. Economics of Discrimination. (Cross-listed with W S). (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. Poverty measurement and antipoverty programs in the U.S. 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 331. Entrepreneurship in Agriculture. (3-0) Cr. 3. Prereq: 101. Introduction to the process of entrepreneurship within the agricultural and food sectors. Emphasis on opportunity recognition and assessment, resource acquisition and feasibility analysis for both private and social enterprises. Students will develop a comprehensive feasibility study for a new business or non-profit organization.

Econ 332. Cooperatives. (3-0) Cr. 3. 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 336. Agricultural Selling. (3-0) Cr. 3. F. Prereq: 101. Principles of selling with application to agricultural and food related businesses. Attitudes, value systems, and behavioral patterns that relate to agricultural sales. Electronic 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. Topics in Agricultural Marketing. Cr. 1-3. Repeatable. Prereq: 101, 235 recommended for sections B, and C. 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 decisions.
A. Dairy marketing
B. Livestock marketing
C. Grain marketing

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 Trade and Finance. (3-0) Cr. 3. F.S. 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 both Econ 355 and 455 may not be applied toward graduation. Credit for both Econ 355 and 457 may not be applied toward graduation. Will only count as a free elective for Econ majors. Nonmajor graduate credit.

Econ 362. Applied Ethics in Agriculture. (Cross-listed with Soc). (3-0) Cr. 3. F. Prereq: Econ 101 or Soc 130 or Soc 134, junior or senior status in the College of Agriculture. Identify major ethical issues and dilemmas in the conduct of agricultural and agribusiness management and decision making. Discuss and debate proper ethical behavior in these issues and situations and the relationship between business and personal ethical behavior.

Econ 370. Comparative Capitalism and Economic Transitions. (3-0) Cr. 3. F. Prereq: 101, 102. Theories of capitalism and the economics of transition from a planned to a market economy; the role and the creation of economic institutions supporting different economic systems. An examination of recent experiences of Eastern European countries, the former Soviet Union, China, the European Union, and the United States.

Econ 371. Introductory Econometrics. (4-0) Cr. 4. F.S. Prereq: 301, 302 or 353, Stat 326. 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 376. Rural, Urban and Regional Economics. (Cross-listed with C R P). (3-0) Cr. 3. F.S. 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. Other topics may include market failure, regulation, the product cycle, theories of rural and urban development, developmental policy, firm recruiting, local public goods and public finance, schools, poverty, segregation, and crime. Nonmajor graduate credit.

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

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. Repeatable. 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. Satisfactory-fail 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. Prereq: 301, Stat 226. 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. Prereq: 301, 302, Stat 226. 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. Firms, Markets and Industry Structure. (2-2) Cr. 3. F.S. Prereq: 301. The theory of the firm; determinants of firm boundaries; firm behavior; perfectly competitive markets; welfare and market efficiency; monopoly and monopsony; price discrimination; oligopoly and oligopsony; strategic market behavior. Nonmajor graduate credit.

Econ 416. Industrial Organization. (3-0) Cr. 3. F. Prereq: 301, 415. Game theoretic approaches to competition and strategizing; spatial competition; research and development; entry deterrence; the economics of regulation. Nonmajor graduate credit.

Econ 430. Advanced Farm Business Management. (3-2) Cr. 4. F. Prereq: 301 and 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. Theory of the firm; organizational incentives and efficiency; moral hazard; role of information and decision making under uncertainty; ownership and control; business investment. Nonmajor graduate credit.

Econ 437. Applied Commodity Marketing and Risk Management. (3-0) Cr. 3. S. Prereq: 235, 301, Stat 326. Applied commodity price analysis. The purpose and performance of commodity markets. Distinguishing features of agricultural commodities. Hedging, arbitrage, and speculation in commodity spot, forward, futures, and options markets. Valuation theory. Nonmajor graduate credit.

Econ 455. International Trade. (3-0) Cr. 3. S. Prereq: 301. Rigorous treatment of theories of international trade and international factor movements. Examination of the impact of trade and labor migration on domestic and world welfare and on the distribution of income. Theoretical analysis of government policies towards trade and factor movements, including quotas, tariffs, free trade areas and immigration restrictions. Discussion of contemporary issues and controversies concerning globalization, including multinational firms and labor migration. Credit for both 355 and 455 may not be applied toward graduation. Nonmajor graduate credit.

Econ 457. International Finance. (3-0) Cr. 3. F. Prereq: 302. National income accounting and balance of payments; foreign exchange rates and exchange rate markets; money, interest rates, and exchange rate determination; prices, exchange rates, and output in the short run; international monetary arrangements; fixed versus flexible exchange rates; optimal currency areas; international capital flows; currency and financial crises in emerging markets. Credit for both Econ 355 and 457 may not be applied toward graduation. Nonmajor graduate credit.

Econ 458. Economic Systems for Electric Power Planning. (Cross-listed with E E). (3-0) Cr. 3. Prereq: E E 303 or Econ 301. Evolution of electric power industry. Power system operation and planning and related information systems. Integer optimization methods. Control technologies and associated planning methods. Short-term electricity markets and locational marginal prices. Risk management and financial derivatives. Basics of public good economics. Cost recovery models including tax treatment for transmission investments. Nonmajor graduate credit.

Econ 460. Agricultural, Food, and Trade Policy. (Dual-listed with 560). (3-0) Cr. 3. S. Prereq: 301 or 501. 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 226, Fin 301 and Econ 353 (recommended). Financial analysis of agricultural businesses; liquidity, capital structure, and growth and risk of agricultural firms; capital budgeting methods; analysis of land investments, leasing, and costs of credit; financial intermediation and major financial institutions for agriculture; borrower-lender relationships, and asset-liability management techniques by financial intermediaries; public policies affecting agricultural credit markets. Nonmajor graduate credit.

Econ 480. Intermediate Environmental and Resource Economics. (Dual-listed with 580). (3-0) Cr. 3. 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. 1-5. Repeatable. Prereq: Junior or senior classification, 14 credits in economics. Satisfactory-fail 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. Satisfactory-fail only.

Econ 496. Economics Travel Course. Cr. 1-3. Repeatable. 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, 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. Applied Numerical Methods in Economics. (2-2) Cr. 3. Prereq: 500, 501; or 600, 601. Use of numerical techniques to solve economic problems. Numerical differentiation and integration numeric solutions of systems of equations, static and dynamic optimization problems including unconstrained optimization, maximum likelihood methods, general nonlinear programming methods, dynamic programming and optimal control, numerical methods for solving functional equations.

Econ 520. Labor Supply and Human Capital Formation. (3-0) Cr. 3. 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. Prereq: 501 or 601. Analysis of labor demand and market determination of wages and employment; analysis of distortions in labor markets due to non-competitive forces, legislation, and discrimination; wage inequality, compensation and work incentives; compensating differentials; microeconomic analysis of unemployment and job search.

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. (Cross-listed with BusAd). (3-0) Cr. 3. Prereq: Econ 501 or 532. Team taught by faculty in the Department of Economics and the College of Business, this course focuses on applied economic and business tools for 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 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 and options markets. Designed for master of agriculture program only.

Econ 537. Commodity Markets: Analysis and Strategy. (3-0) Cr. 3. Prereq: 501 or 532 or 601, Econ 571 or Stat 326. Analysis of exchange-traded and over-the-counter commodity markets and related contracts, their functions, performance, and relations with spot markets. Evaluation of hedging, speculation, and arbitrage strategies. Valuation of derivatives. Efficiency and the role of information in commodity markets. Market regulation. Price forecasting.

Econ 545. Public Economics. (3-0) Cr. 3. Prereq: 501 or 601. Optimal taxation; excess burden; partial and general equilibrium analysis of tax incidence; social insurance; effects of taxation on labor supply and savings; economics of the health sector.

Econ 553. Applied Research in Monetary and Macroeconomics. (3-0) Cr. 3. 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. 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, Food, and Trade Policy. (Dual-listed with 460). (3-0) Cr. 3. S. Prereq: 301 or 501. 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 macroeconomic policy, world economy, and international trade on U.S. 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 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 576. Spatial Economics. (3-0) Cr. 3. 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 580. Intermediate Environmental and Resource Economics. (Dual-listed with 480). (3-0) Cr. 3. 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.

Econ 581. Advanced Environmental Economics. (3-0) Cr. 3. 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 590. Special Topics. Cr. 1-5. Repeatable. Satisfactory-fail only.

Econ 599. Creative Component. Cr. 1-5. Satisfactory-fail only.

Courses for graduate students

Econ 600. Quantitative Methods in Economic Analysis II. (4-1) Cr. 4. F. Prereq: 500 and linear algebra. Unconstrained and equality- and inequality-constrained optimization; the Kuhn-Tucker formulation; abstract spaces; dynamic programming; dynamical systems.

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, welfare change measures; partial equilibrium analysis, perfect competition, monopoly; choice under uncertainty, the expected utility model, risk aversion; insurance, portfolio and production decisions under risk.

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. Neoclassical aggregate growth models; the overlapping generations model; endogenous growth models; equilibrium business cycle theories; equilibrium job search and matching; models of money; fiscal and monetary policy; income and wealth distribution.

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; introduction to game theory; adverse selection, signaling, screening and moral hazard.

Econ 604. Advanced Macroeconomic Analysis. (4-1) Cr. 4. F. Prereq: 601, 602 and permission of Director of Graduate Studies. Topics will be selected from: new Keynesian approaches to business cycle theory; endogenously generated business cycles; models of credit and financial intermediation; mechanism design and time inconsistency issues; political economy models; heterogeneous-agent models with strategic interaction; path dependence, network effects, and lock-in; economies as evolving self-organizing systems.

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

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

Econ 615. Industrial Organization I. (3-0) Cr. 3. Prereq: 603. Theoretical analysis of traditional topics in industrial organization. Review of game theory. Monopoly and oligopoly theory, price discrimination, product differentiation, research and development, diffusion of innovation, network externalities, and asymmetric information.

Econ 616. Industrial Organization II. (3-0) Cr. 3. Prereq: 601, 671. Empirical methods in industrial organization. Measurement of market power. Discrete choice models of product differentiation. Empirical studies of price dynamics, entry, collusion, price discrimination, technology adoption, asymmetric information, and auctions.

Econ 618. Game Theory. (3-0) Cr. 3. Prereq: 501 and permission of instructor. Theoretical analysis and applications of strategic games, extensive form games, and cooperative games. Nash equilibrium, correlated equilibrium, Bayesian games, subgame perfect equilibrium, the core, evolutionary equilibrium, repeated games with finite automata, and common knowledge.

Econ 641. Agricultural Economics I. (3-0) Cr. 3. Prereq: 603. Advanced treatment of topics in agricultural economics with emphasis on optimization models. Part 1: Applied duality in production and demand models. Flexible representation of production and demand systems. Production efficiency and nonparametric analysis. Production models with risk. Part 2: The role of contracts in the organization and coordination of agricultural production. Distribution of asset ownership, allocation of risk among parties, and the structure of incentive systems. Rationale for cooperative efforts and information sharing. The role of information, insurance, and credit.

Econ 642. Agricultural Economics II. (3-0) Cr. 3. Prereq: 603. Advanced treatment of topics and models in agricultural economics with emphasis on equilibrium analysis. Part 1: Application of price theory to agricultural market analysis. Vertical market relations, product differentiation and quality in agri-food markets. Storage, futures markets and commodity prices. Part 2: Market failures and the scope for government intervention in agriculture. Applied welfare analysis of agricultural and environmental policies. Issues and models in international trade of agricultural products.

Econ 653. Financial Economics. (3-0) Cr. 3. Prereq: 603, 672. 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. Repeatable. Prereq: 603. Selected topics in financial economics of current significance to the profession.

Econ 655. International Trade. (3-0) Cr. 3. Prereq: 603. Theories of international trade; welfare and distributional aspects of trade and commercial policies. Optimal trade policies in the presence of domestic distortions; strategic trade policy; international trade and economic growth.

Econ 657. International Finance. (3-0) Cr. 3. Prereq: 604. The intertemporal approach to current account determination; non-traded goods and the real exchange rate; fiscal policy in the open economy; monetary approach to balance of payments and exchange rate determination; sticky price models of the open economy; exchange-rate based stabilizations; capital inflows; financial and balance of payments crises; international business cycles.

Econ 671. Econometrics I. (4-1) Cr. 4. F. Prereq: 501 and Stat 447 or 542. Probability and distribution theory for univariate and multivariate normal random variables, introduction to the theory of estimators for linear models, hypothesis testing and inference, introduction to large sample properties of estimators; derivation of common estimators and their properties for the classical and general multiple regression models, hypothesis testing, forecasting, implications of specification errors - missing data, left-out regressors, measurement error, stochastic regressors.

Econ 672. Econometrics II. (4-1) Cr. 4. S. Prereq: 671. Identification, estimation, and evaluation of systems of simultaneous equations; qualitative choice and limited dependent variable models; introduction to time series methods and applications, including alternative variance specifications.

Econ 673. Microeconometrics. (3-0) Cr. 3. Prereq: 672, 601. Econometric treatment of models arising in microeconometric applications. Methods are primarily concerned with the analysis of cross-section data. Topics may include: systems of demand equations in panel data settings, random utility models of discrete choices, production possibilities frontier estimation, and discrete/continuous models of participation and consumption.

Econ 674. Macroeconometrics. (3-0) Cr. 3. Prereq: 672, 602. Time-series econometric techniques and their application to macroeconomics and financial markets. Techniques may 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. Repeatable. Prereq: 672 or Stat 543. 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. 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. 1-5. Repeatable. Satisfactory-fail only.

Econ 691. Third-Year Paper. Cr. 3. Under the direction of the major professor, Ph.D. students write a formal research paper as an introducation to the dissertation research process. Satisfactory-fail only.

Econ 693. Workshops. Cr. 1-3. Repeatable. Prereq: 6 graduate credits in chosen field. Satisfactory-fail only.

Econ 699. Research for Thesis or Dissertation. Cr. arr. Repeatable. Satisfactory-fail only.