Economics Courses (ECO)
The following courses, numbered 0900-5999, are offered for undergraduate credit. Courses numbered 6000-9999, which are offered for graduate credit only, may be found in the graduate bulletin. The Director of Graduate Studies may approve courses numbered 5000-5999 for graduate credit unless specifically restricted to undergraduate students by individual course limitations. For interpretation of numbering system, signs and abbreviations, see University Courses.

Introductory Economics Courses
Directed Readings and Special ECO Courses
Field A: Economic Theory Courses
Field B: Quantitative Methods Courses
Field C: Industrial Organization Courses
Field D: International Economics Courses
Field E: Labor and Human Resources Courses
Field F: Public Economics Courses
Field G: Monetary and Financial Economics Courses
Field H: Urban and Regional Economics Courses
Prerequisite Requirements
Economics is a demanding field of study and the Department makes every effort to ensure that students are adequately prepared to succeed in all economics courses. Consequently, the prerequisite sequencing defined for each course should be assumed as required and not merely recommended; and students who do not adhere to these requirements, will be withdrawn from courses for which they have not completed the designated prerequisites. In instances in which a student is obliged to register for a course in the immediate subsequent term, which has as a prerequisite a course he/she is currently taking, the Department will give him/her the benefit of the doubt and let the registration proceed; but continuance in the subsequent course will be predicated on having achieved the required passing grade in the prerequisite course. If the required passing grade is not achieved in the prerequisite course, the student will be withdrawn from the subsequent course. The Department makes every effort to see that these withdrawals are made within the full refund period, but in the event that this is not possible, students will be charged in accordance with the official Tuition Cancellation Schedule.
Mathematics prerequisites are cited BOTH for reasons of required applicability in course work and for expected applicability of material learned in economics courses in professional fields for which economics is a required background. Thus, all economics courses for which mathematics prerequisites are cited, will be treated consistent with the policy as described above. Students should NOT assume, that because the mathematics specifically cited as prerequisite to an economics course was not used in the course, that that level of preparedness was not required.
Prerequisite Grades: ECO 2010, 2020, 5000, 5050, 5100; and MAT 1500 and 1800 cited as prerequisites in any of the following courses must be passed with a minimal grade of "C" in order for these courses to serve their prerequisite function.
1000 (SS) Survey of Economics. Cr. 4
Not applicable for major or minor economics credit . Scope of economics and the task of the economist in modern society; the market economy - its evolution and development; non-market economies; economic problems and prospects in the contemporary world. (T)
2010 (SS) Principles of Microeconomics. Cr. 3-4
(Note: ECO 2010 is not a prerequisite for ECO 2020.) Supply, demand, price at the level of the firm and industry; business institutions and their operation; determinants of wage and salary levels, interest rates, rent, profits, income distribution; public policy in relation to business and labor. (T)
2020 (SS) Principles of Macroeconomics. Cr. 3-4
(Note: ECO 2010 is not a prerequisite for ECO 2020.) Determination of national income, consumption and saving, and investment; money, banking and the Federal Reserve; inflation and unemployment; monetary and fiscal policy; economic growth and productivity; the international sector. (T)
5000 Intermediate Microeconomics. Cr. 4
Prereq: ECO 2010, MAT 1500 or MAT 1800, or equiv. based on satisfactory score on mathematics placement exam. Theory of the firm and consumer. Analysis of a price system as a means to efficient allocation of productive resources. (T)
5020 (ECO 5020) Fundamentals of Economic Analysis.
(ECO 7020) Cr. 4
Prereq: ECO 5000 and MAT 2010 or equiv. ECO 5020 offered for undergraduate credit only; ECO 7020 offered for graduate credit only. This course assumes good knowledge of first semester calculus, and teaches additional mathematics necessary for Ph.D. study in economics, and (to a lesser extent) teaches some economic implications; course content includes: matrices, vectors and linear algebra; partial and total derivatives; scalar and vector functions; Jacobian derivative matrices and determinants; implicit function theorem; derivatives of implicit functions with one or more endogenous variables; unconstrained maximization with two or more variables; Lagrangians and constrained maximization; envelope theorem; differential and difference equations, and systems of differential and difference equations. (F)
5050 Intermediate Macroeconomics. Cr. 4
Prereq: ECO 2020, MAT 1500 or MAT 1800 or equiv. based on satisfactory score on mathematics placement exam. Theory of national income determination. National output and income, saving and capital formation. (T)
5100 Introductory Statistics and Econometrics. Cr. 4
Prereq: ECO 2010, 2020; MAT 1500 or MAT 1800 or equiv. based on satisfactory score on mathematics placement exam. Offered for undergraduate credit only. Elementary probability theory, discrete and continuous probability distribution, sampling distribution, interval estimation, hypothesis testing, and estimation and inference in simple and multiple regression models. (T)
5200 (ECO 5200) Regulation and Regulated Industries. (ECO 6200) Cr. 4
Prereq: ECO 2010. Open only to undergraduate students. Public regulation of prices, profits, service, and entry in industries such as electrical power, natural gas, telephones, broadcasting, and transportation; the rationale for having public regulation, and the analysis of its economic effects; reform of the scope and practice of regulation; public ownership; regulation of occupational and product safety standards and environmental standards. (Y)
5210 (ECO 5210) Market Power and Economic Welfare. (ECO 6210) Cr. 4
Prereq: ECO 2010 and 5000. Open only to undergraduate students. Monopoly, oligopoly, and competition in U.S. industry; sources of market power and their effect on prices, profits, and technological progress, as illustrated by such industries as steel, automobiles, petroleum, retailing, or prescription drugs. Selected topics in antitrust policy. (Y)
5250 (ECO 5250) Economic Analysis of Law. (ECO 6250) Cr. 4
Prereq: ECO 2010. Open only to undergraduates. Economic analysis of property rights, torts, contracts, criminal law, the law of business organizations and financial markets, and the law of taxation. Economic analysis of litigation; the use of economics and statistics in litigation. (Y)
5270 Games of Strategy. Cr. 4
Open only to undergraduates. Prereq: ECO 5000; MAT 1500 or MAT 1800 or equiv. based on satisfactory score on mathematics placement exam. Game theory studies how individuals, groups and firms make their decisions strategically when their actions affect each other. Introductory course with emphasis on applications to firms and markets. Standard concepts such as games with sequential moves, simultaneous moves, pure and mixed strategies, uncertainty, and repetition. Special topics include bargaining, strategic innovation, cooperative pricing, contract designs, incentive mechanisms, bidding, and auctions. (Students do not need to know calculus to follow the lectures.) (Y)
5300 (ECO 5300) International Trade. (ECO 6300) Cr. 4
Prereq: ECO 2010. Open only to undergraduates. Factors in international relations; patterns of international specialization; balance of international payments; foreign exchange; commercial policy of United States and other countries; foreign investment and economic development; international economic cooperation. (F)
5310 (ECO 5310) International Finance. (ECO 6310) Cr. 4
Prereq: ECO 2020 and 5050. Open only to undergraduates. Major policy issues in the field of international finance with emphasis on open economy macroeconomics. Topics include the balance of payments and the foreign exchange market; monetary and fiscal policies in open economies; the floating exchange rate system; international financial markets; and European monetary integration. (W)
5400 (ECO 5400) Labor Economics. (ECO 6400) Cr. 4
Prereq: ECO 2010. Open only to undergraduates. Economics of labor markets. Determinants of earnings and methods of compensation, labor supply and demand, effects of taxes and subsidies on labor supply, choices of occupation and level of schooling, promotion and turnover, employment discrimination, economics of crime and punishment, regulation of professions, unions. (F,W)
5410 (ECO 5410) Economics of Race and Gender. (ECO 6415) Cr. 4
Prereq: ECO 2010. Open only to undergraduates. Theory and empirical evidence of race and gender differentials in the labor market. Topics include the difference in occupations and earnings, discrimination, poverty, and public policies. (W)
5460 (ECO 5460) Economic Demography. (ECO 6460) Cr. 4
Prereq: ECO 5000 and ECO 5100 or consent of instructor. Economic analysis of fertility, fertility control, mortality and aging, marriage, divorce, family structure, household-decision-making, human capital investments, and migration. Welfare and policy implications. (Y)
5470 (ECO 5470) Economics of an Aging Society. (ECO 6470) Cr. 4
Prereq: ECO 5000 or consent of instructor. Economic implications of aging and retirement; public policy issues related to aging, including health care, long term care, public pensions (Social Security), private pensions, savings behavior, income maintenance, Medicare, other welfare problems. (Y)
5480 (ECO 5480) Economics of Work. (ECO 6480) Cr. 3
Prereq: ECO 2010. No economics major degree credit. Primarily for students majoring in Labor Studies. Theoretical and empirical treatment of: labor market characteristics; labor demand and supply; issues of race, gender, and age; compensation and pay; issues of health and productivity; bargaining processes and the effects of unions; unemployment and job search; globalization. (Y)
5490 (ECO 5490) American Labor History. (HIS 5290)
(HIS 7290) Cr. 4
Prereq: ECO 2010 or consent of instructor. Development of the American labor movement; its behavior in the contemporary scene. Labor's experiments with social, political, legal, and economic institutions. Comparisons with foreign labor movements. (B)
5500 (ECO 5500) Public Finance. (ECO 6510) Cr. 4
Prereq: ECO 2010. Open only to undergraduates. Role of government in a market economy: sources of market failure--public goods and externalities; principles of taxation and expenditures; tax incidence; federal tax structure; selected government expenditure programs. (F,S)
5520 (ECO 5520) State and Local Public Finance. (ECO 6520) (U P 6750) Cr. 4
Prereq: ECO 2010 or consent of instructor. Open only to undergraduates. Theory and practice of state and local government taxation and expenditure. Attention devoted to State of Michigan and municipalities in Detroit metropolitan area. Topics include: government organization, voting and mobility models, property and sales taxes, user charges, grants, education expenditure, and economic development. (Y)
5550 (ECO 5550) Economics of Health Care. (ECO 6550) Cr. 4
Prereq: ECO 2010. Open only to undergraduates. Allocation of health care resources, with respect to demand and supply of health care. Role of hospitals, physicians, and health insurance; market imperfections and their role in the economics of health care. (Y)
5600 (ECO 5600) Introduction to Development Economics. (ECO 6600) Cr. 4
Prereq: ECO 2010 or consent of instructor. National poverty and economic growth viewed from a historical and theoretical perspective; particular emphasis on national and international policies. (Y)
5700 (ECO 5700) Money and Banking. (ECO 6700) Cr. 4
Prereq: ECO 2020 and ECO 5050. Role of the Federal Reserve System, the commercial banks, and the non-bank public (including financial intermediaries) in determining the money supply; central banking and techniques of monetary control; indicators and targets of monetary policy; and how money affects economic activity. (F,W)
5720 (ECO 5720) Financial Economics. (ECO 6720) Cr. 4
Prereq: ECO 2010, ECO 2020, ECO 5050, andMAT 1500 or equiv. Open only to undergraduates. Fundamentals of investments: investment and financial markets, theoretical models of investment theory including efficient market hypothesis (EMH) and capital asset pricing model (CAPM); characteristics and analysis of stocks, bonds, and portfolios; equity evaluation through financial statements, industry analysis, and macroeconomic analysis; and advanced topics in either derivative assets (futures and options) or international investments. (W)
5730 Economic Growth. (ECO 6730) Cr. 4
Prereq: ECO 2020 and ECO 5050. Offered for undergraduate credit only. Analytical methods used in classical and modern theories of economic growth. Topics include technological change, determinants of growth, convergence and income distribution. Introduction to the empirical analysis of economic growth and to important facts relative to policies and performances of countries. (Y)
5800 (ECO 5800) Urban and Regional Economics. (ECO 6800) (U P 5820) Cr. 4
Prereq: ECO 2010. Open only to undergraduates. Introduction to the economic foundations of urban problems; land use, housing, poverty, transportation, local public finance; regional industry mix, income, growth and development; the national system of cities and location of firms. (Y)
6455 (U P 6455) Discrimination and Fair Housing. (AFS 6455) (P S 6455) (SOC 6455) (U S 6455) Cr. 3
Prereq: senior or graduate standing. Multidisciplinary investigation into the nature, motivations, consequences, and legal/public policy implications of racial/ethnic discrimination in housing and related markets in U.S. metropolitan areas. (B)
6810 (ECO 6810) Political Economy of the Urban Ghetto.
(SOC 6850) (U P 6670) Cr. 3
Prereq: graduate standing; upper division undergraduates by consent of instructor. Examination of the economic, social and political transformation of U.S. cities; particular attention to the formation, dynamics, economics and social sub-systems of urban ghettos and their relationship to broader contexts. (B)
3990 Directed Study. Cr. 1 (Max. 2)
Prereq: senior standing with 12 or more credits in economics with grade A or B. For the student who shows evidence of ability and interest in economic study and who desires opportunity for advanced reading in a special field. Arrange with adviser. (T)
4991 Research in Economics. Cr. 3-12
Prereq: consent of Director of Undergraduate Studies prior to registration;senior standing with sixteen or more credits in economics with grades of A or B. Does not count toward thirty-two credit requirement for the major. Economics research on an appropriate topic of the student’s choice; conducted under faculty supervision. (Y)
4997 Senior Honors Research. Cr. 4 (8 req.)
Prereq: consent of Director of Undergraduate Studies prior to registration; senior standing, major in economics. For students in economics honors program for which this seminar must be elected in two successive semesters. Individually arranged meetings with a faculty member to discuss research methodology and readings in areas of research selected by the instructor. A senior honors essay of length proportionate to the selected topic will be required. (T)
5993 (WI) Writing Intensive Course in Economics. Cr. 0
Prereq: junior standing; satisfactory completion of the IC requirement; consent of instructor; coreq: any ECO course at 5000-level or above. Offered for S and U grades only. No degree credit. Required for all majors. Disciplinary writing assignments under the direction of a faculty member. Satisfies the University General Education Writing Intensive Course in the Major requirement. (T)