Economics Courses (ECO)

The following courses, numbered 5000-9999, are offered for gradu­ate credit. Courses numbered 5000-6999 which are offered for undergraduate credit only may be found in the undergraduate bulle­tin. Courses in the following list numbered 5000-6999 may be taken for undergraduate credit unless specifically restricted to graduate students as indicated by individual course limitations. It is the respon­sibility of graduate students taking 5000-6999 level courses for credit accrual to a graduate degree to inform the instructor of their status, and to assume that graduate level course work will be expected of them. For interpretation of numbering system, signs and abbrevia­tions, see Signs and Abbreviations


Field A — Economic Theory

Field B — Quantitative Methods

Field C — Industrial Organization

Field D — International Economics

Field E — Labor and Human Resources

Field F — Public Finance

Field G — Health Economics

Field H — Economic Development

Field I — Macro and Financial Economics

Field J — Urban and Regional Economics

Directed Readings and Special Courses

Field A — Economic Theory

6000    Price and Allocation Theory. Cr.    4

Prereq: ECO 5000 or equiv.; MAT 2010 or equiv. Introduction to the theory of consumer choice and the theory of production, and other selected topics. Primarily for M.A. students and for Ph.D. students who want to review.    (F)

6050    Macroeconomics. Cr.    4

Prereq: ECO 5050 or equiv. No credit after ECO 7050. Offered for graduate credit only. Determination of national income, unemploy­ment and interest rates; theories of inflation; effectiveness of macro­economic public policies. Primarily for M.A. students and for Ph.D. students who want to review.    (W)

7000    Microeconomic Theory I. (ECO 5030) Cr.    4

Prereq: ECO 5000, ECO 7020; MAT 2010 or MAT 5010 and MAT 2020 or equiv. Theory of choice; theory of cost and production; the­ory of the competitive firm. Price and output in non-competitive mar­kets. General competitive equilibrium and welfare economics.    (W)

7010    Microeconomic Theory II. Cr.    4

Prereq: ECO 7000. Continuation of ECO 7000. Includes general equilibrium analysis and game theory.    (F)

7020    (ECO 5020) Fundamentals of Economic Analysis I. Cr.    4

Prereq: ECO 5000, and calculus 1: MAT 2010 or MAT 5010 or equiv. ECO 5020 offered for undergraduate credit only; ECO 7020 offered for graduate credit only. This course assumes sound knowledge of first and second semester calculus, and teaches additional mathe­matics necessary for Ph.D. study in economics, and covers addi­tional mathematics necessary for Ph.D. study in mathematics, and to a lesser extent 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)

7021    Fundamentals of Economic Analysis II. Cr.    4

Prereq: MAT 2020 and ECO 5000; coreq: ECO 7020. Mathematical methods specific to macroeconomics and econometrics. Applications of matrix operations, distribution functions, estimation methods, dif­ference equations, differential equations, inter-temporal optimization, calculus of variations, control theory.    (F)

7050    Macroeconomic Theory I. Cr.    4

Prereq: ECO 5050 or equiv. Determination of national income, employment, interest rates and the price level; static and dynamic models; cycle and growth models; classic, Keynesian and neo-Keynesian models.    (W)

7060    Macroeconomic Theory II. Cr.    4

Prereq: ECO 7050 or equiv. Mathematical and statistical methods: differential and difference analysis. Intertemporal economic theory: the household, the firm, and economic growth. Overlapping genera­tions models and the Ricardian theory of government finance. Theo­ries of the business cycle: real business cycle models, Keynesian and New Classical theories of the business cycle.    (F)

 

Field B — Quantitative Methods

6100    Introduction to Econometrics. Cr.    4

Prereq: MAT 2010 and ECO 5100. Basic statistics, basic probability, hypothesis testing, and bivariate and multivariate regression analy­sis. Estimators studied are least squares, maximum likelihood and generalized least squares. Various model specification issues addressed: omitted variables, extraneous variables, category vari­ables, multicollinearity, heteroscedasticity, and autocorrelation.    (F)

6120    Statistics and the Law. Cr.    3

Prereq: MAT 1800 or equiv. Available for Law School credit only to Law students. Not for Economics major credit. Offered for graduate credit only. Application of statistics and economic analysis to issues arising in the legal system and the practice of law. Topics include: descriptive statistics, elements of probability, regression, and price theory.    (W)

7100    Econometrics I. Cr.    4

Prereq: ECO 6100 or equiv and ECO 7020. Probability and statistics: moment generating functions, common families of statistical distribu­tions, multiple random variables and properties of a random sample. Estimation and hypothesis testing: method of moments, generalized method of moments, maximum likelihood estimators, instrumental variable estimators, Bayes estimators, likelihood ratio tests, finite sample properties and asymptotic properties of OLS.    (F)

7110    Econometrics II. Cr.    4

Prereq: ECO 7100. Modeling and estimation: generalized least squares, panel data models (fixed effects and random effects), sys­tem of equations (endogeneity, identification), models with discrete dependent variables (probit, logit), models with limited dependent variables (truncation, censoring), stationary time-series (ARMA), vec­tor-autoregression (VAR, VMA), non-stationary time-series (unit roots, cointegration).    (W)

7120    Econometrics III. Cr.    4

Prereq: ECO 7100 and ECO 7110. Advanced economic techniques in microeconomics and macroeconomics. In the first half of the course, emphasis on specification, estimation, interpretation, and testing of microeconomic models. The second half will cover statisti­cal models for the analysis of economic time series data, with appli­cations in macroeconomics and finance.    (Y)

 

Field C — Industrial Organization

5230    Environmental Economics. Cr.    4

Prereq: ECO 1000 or ECO 2010. Externalities as the cause of envi­ronmental degradation and climate change. Externality in turn results from the failure of the market to develop prices that reflect the full global cost of production and consumption. The course also pays attention to normative issues. The population over which the norma­tive issues are defined may include animals, plants and inanimate objects. Behavioral economics, in particular, will be brought to bear on the discussion throughout the course.    (F,W)

6200    (ECO 5200) Advanced Regulation and Regulated Indus­tries. Cr.    4

Prereq: ECO 5000. No credit after ECO 5200. Open only to graduate students. Offered for graduate credit only. Transportation economics. Regulation of transportation as an example of public control of busi­ness; 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)

6210    (ECO 5210) Advanced Market Power and Economic Wel­fare. Cr.    4

Prereq: ECO 5000. No credit after ECO 5210. Open only to graduate students. Offered for graduate credit only. Monopoly, oligopoly, and competition in U.S. industry; sources of market power and their effect on prices, profits, and technological progress. Case studies. Selected topics in antitrust policy.    (Y)

6250    (ECO 5250) Advanced Economic Analysis of Law. Cr.    4

Prereq: ECO 5000. No credit after ECO 5250. Open only to graduate students. Offered for graduate credit only. 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. Advanced mathematical analysis of selected topics.    (Y)

7200    Industrial Organization I. Cr.    4

Prereq: ECO 6000. Theories of competition and market power. Top­ics include concentration, scale economies, product differentiation, entry barriers, collusion, mergers, price discrimination, information, and advertising.    (B)

7210    Industrial Organization II. Cr.    4

Prereq: ECO 6000. Economic analysis of antitrust policy and public regulation of industry. Rationale for regulation and mandates of vari­ous regulatory agencies. Problems in public utility rate-making. Mis­allocations induced by regulation. Role of competition in regulated industries.    (B)

Field D — International Economics

6300    (ECO 5300) Advanced International Trade. Cr.    4

Prereq: ECO 5000. No credit after ECO 5300. Open only to graduate students. Offered for graduate credit only. 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. Advanced mathemati­cal analysis of selected topics.    (Y)

6310    (ECO 5310) Advanced International Finance. Cr.    4

Prereq: ECO 5000 and ECO 5050. No credit after ECO 5310. Open only to graduate students. Offered for graduate credit only. 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. Advanced mathematical analysis of selected topics.    (Y)

7300    International Trade Theory. Cr.    4

Prereq: ECO 6000. Classical and modern models of the determi­nants of international trade and their empirical verification; impact of trade on earnings of production factors; economic analysis of various trade policy instruments; strategic trade policy; economic analysis of international trade rules and institutions; political economy of trade policy.    (B)

7310    International Monetary Theory. Cr.    4

Prereq: ECO 6050. Foreign exchange rate and balance of payments adjustment theory under alternative exchange rate regimes; stabili­zation policies in open economies; financial capital movements; mon­etary unions; economic growth and the balance of payments.    (B)

 

Field E — Labor and Human Resources

6400    (ECO 5400) Advanced Labor Economics. Cr.    4

Prereq: ECO 5000. No credit after ECO 5400. Open only to graduate students. Offered for graduate credit only. 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. Advanced mathematical analysis of selected topics.    (Y)

6415    (ECO 5410) Advanced Economics of Race and Gender. Cr.    4

Prereq: ECO 5000. No credit after ECO 5410. Open only to graduate students. Offered for graduate credit only. 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. Advanced mathematical analysis of selected topics.    (Y)

6420    Labor Relations and Public Policy. Cr.    3

Prereq: ECO 2010 or graduate standing. Offered for graduate credit only. Overview of labor force trends; U.S. unionism; management of labor relations; collective bargaining: procedure and substance; bar­gaining power in the private and public sectors. Comparative trends and principles in industrial relations systems of other societies also examined.    (F,S)

6455    (UP 6455) Discrimination and Fair Housing. (AFS 6455) (PS 6455) (SOC 6455) (US 6455) Cr.    3

Prereq: senior or graduate standing; for undergraduates: written con­sent of Director of Undergraduate Studies prior to registration. 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)

6460    (ECO 5460) Economic Demography. Cr.    4

Open only to graduate students. Prereq: ECO 5000 and ECO 5100. No credit after ECO 5460. Offered for graduate credit only. 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. Advanced mathematical analysis.    (Y)

6480    (ECO 5480) Advanced Economics of Work. Cr.    3

Prereq: ECO 2010. Open only to students in MAELR program. Not open to other graduate students; not open to economics majors. Offered for graduate credit only. 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)

7400    Labor Economics and Human Resources. Cr.    4

Prereq: ECO 6000. Labor force participation and composition; factors affecting wage levels (money and real) and wage structure. Theoreti­cal and empirical analyses of occupational choice, labor mobility, pro­motion, turnover, unemployment, the effects of taxation, retirement and income inequality.    (B)

7410    Economics of Human Resources. Cr.    4

Prereq: ECO 6000 and 6100. Theoretical and empirical analyses of labor supply and family allocation of time; the return to education; role of general and firm-specific human capital and job mobility in wage growth over a career; race and gender differences in the labor market; intergenerational transfers and mobility.    (B)

Field F — Public Finance

6510    (ECO 5500) Advanced Public Finance. Cr.    4

Prereq: ECO 5000. No credit after ECO 5500. Open only to graduate students. Offered for graduate credit only. 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. Advanced mathematical analysis of selected topics.    (Y)

6520    (ECO 5520) Advanced State and Local Public Finance. (UP 6750) Cr.    4

Prereq: ECO 5000. No credit after ECO 5520. Open only to graduate students. Offered for graduate credit only. 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. Advanced mathematical analysis of selected topics.    (Y)

Field G — Health Economics

6550    (ECO 5550) Advanced Economics of Health Care. Cr.    4

Prereq: ECO 5000. No credit after ECO 5550. Open only to graduate students. Offered for graduate credit only. Allocation of health care resources, with respect to demand and supply of health care. Roles of hospitals, physicians, and health insurance; market imperfections and their role in the economics of health care. Advanced mathemati­cal analysis of selected topics.    (Y)

7550    Economics of Health Care I. Cr.    4

Prereq: ECO 6000. No credit after ECO 5550. Basic introduction to health care economics including allocation of health care resources, economics of information, and the role of advertising.    (B:W)

7560    Economics of Health Care II. Cr.    4

Prereq: ECO 6000. No credit after ECO 5550. Particular roles of hos­pitals, physicians, and health insurance in the economy. Analysis of government policies.    (B)

Field H — Economic Development

6600    (ECO 5600) Advanced Development Economics. Cr.    4

Prereq: ECO 5000. No credit after ECO 5600. Open only to graduate students. Offered for graduate credit only. National poverty and eco­nomic growth viewed from a historical and theoretical perspective; particular emphasis on national and international policies. Advanced mathematical analysis of selected topics.    (Y)

6650    (UP 6550) Regional, State, and Urban Economic Devel­opment: Policy and Administration. (PS 6440) Cr.    3

Prereq: graduate standing. Offered for graduate credit only. Exam­ination of regional, state, and local economic development theory, analysis, policy and administration.    (B)

 

Field I — Macro and Financial Economics

6700    (ECO 5700) Advanced Money and Banking. Cr.    4

Prereq: ECO 2020 and ECO 5050. Open only to graduate students. Offered for graduate credit only. 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. Advanced mathematical analysis of selected topics.    (Y)

6730    (ECO 5730) Economic Growth. (ECO 6730) Cr.    4

Prereq: ECO 5050. Open only to graduate students. No credit after ECO 5730. Offered for graduate 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. Advanced mathematical analysis of selected topics.    (T)

7700    Advanced Macroeconomics I. Cr.    4

Prereq: ECO 7050 and ECO 7060. For Ph.D. students who wish to take macroeconomics as a field of concentration. Topics vary, and may include: economic growth, vector autoregressions, cointegra­tion, fractional integration, breaks in economic time series, efficiency wage theories of labor market, contracting, incomplete markets and business cycles, buffer stock models of saving. Time series methods applied to economic time series such as real and nominal exchange rates and cross-country macroeconomic data.    (B)

7710    Advanced Macroeconomics II. Cr.    4

Prereq: ECO 7050 and ECO 7060. Continuation of ECO 7700.    (B)

Field J — Urban and Regional Economics

6800    (ECO 5800) Advanced Urban and Regional Economics. Cr.    4

Prereq: ECO 5000. No credit after ECO 5800. Open only to graduate students. Offered for graduate credit only. 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. Advanced mathematical analysis of selected topics.    (Y)

Directed Readings and Special Courses

7996    Research in Economics. Cr.    2-8 (Max. 16)

Prereq: written consent of advisor. Open to qualified students who desire opportunity for research and directed study. May be con­ducted as seminar.    (T)

9990    Pre-Doctoral Candidacy Research. Cr.    1-8 (Max. 12)

Prereq: written consent of department and approval by Ph.D. Officer of the Graduate School. Offered for S and U grades only. Research in preparation for doctoral dissertation.    (T)

9991    Doctoral Candidate Status I: Dissertation Research and Direction. Cr.    7.5

Prereq: Ph.D. candidate in department and approval by the Ph.D Officer of the Graduate School. Required in academic-year semester following advancement to Ph.D. candidacy. Offered for S and U grades only.    (T)

9992    Doctoral Candidate Status II: Dissertation Research and Direction. Cr.    7.5

Prereq: ECO 9991 and approval by the Ph.D. Officer of the Graduate School. Required in academic-year semester following ECO 9991. Offered for S and U grades only.    (T)

9993    Doctoral Candidate Status III: Dissertation Research and Direction. Cr.    7.5

Prereq: ECO 9992 and approval by the Ph.D. officer of the Graduate School. Required in academic-year semester following ECO 9992. Offered for S and U grades only.    (T)

9994    Doctoral Candidate Status IV: Dissertation Research and Direction. Cr.    7.5

Prereq: ECO 9993 and approval of Ph.D. of the Graduate School. Required in academic-year semester following ECO 9993. Offered for S and U grades only.    (T)

9995    Candidate Maintenance Status: Doctoral Dissertation Research and Direction. Cr.    0

Prereq: approval by the Ph.D. Officer of the Graduate School; com­pletion of 30 credits in ECO 9991-9994. Offered for S and U grades only. Ph.D. Candidate Maintenance Fee given in Schedule of Classes.    (T)