A. Core Courses
16-220:600 MATHEMATICAL METHODS FOR MICROECONOMICS
Prerequisite: Calculus and Linear Algebra
Basic mathematical tools for consumer and producer theory. Topics include compact sets, differentiability, convex sets, separation theorems, constrained optimization and the Kuhn-Tucker theorem, applications in consumer and producer theory.
16-220:601 MICROECONOMIC THEORY I
Prerequisite: 16-220:600 or permission of instructor
General equilibrium theory; the Arrow-Debreu model, decision making under uncertainty; the Von-Neumann Morgenstern theory, risk aversion, applications to insurance problems and portfolio choice, applications to competitive equilibrium with uncertainty.
16-220:602 MICROECONOMIC THEORY II
Introduction to the theory of games and related economic models with informational asymmetries. Topics include non-cooperative games and models of moral hazard and adverse selection.
16-220:603 MATHEMATICAL METHODS FOR MACROECONOMICS
Prerequisite: Calculus and Linear Algebra
Basic mathematical tools for dynamic economic models. Topics include linear algebra from echelon form to projection operators, quadratic forms, linear difference and differential equations, dynamic programming and control theory, applications to dynamic models of macroeconomics, growth and human capital.
16-220:604 MACROECONOMIC THEORY I
Prerequisite: 16-220:603 or permission of instructor
Introduction to economic dynamics, economic growth, business cycles, and the role of macroeconomic policy.
16-220:605 MACROECONOMIC THEORY II
General equilibrium modeling of the macroeconomy. Topics will include the stochastic growth model and multiple equilibrium. Empirical validation will also be stressed.
16-220:606 ADVANCED ECONOMIC STATISTICS
Prerequisite:Calculus and Linear Algebra
The purpose of the course is to build a sound background in statistical inferential procedures that are used in economic data analyses. Sampling theory and Bayesian viewpoints will be presented. Topics include probability, random variables and distributions, estimation, testing hypotheses, and sampling distribution of estimators. Knowledge of elementary integral and differential calculus is prerequisite to the course.
16-220:607 ECONOMETRICS I
Prerequisite: 16-220:606 or equivalent
Statistical estimation and inference of regression equation models. Properties of OLS, GLS, JGLS, 2SLS, 3SLS, and Maximum Likelihood Estimators. Introduction to time series analysis and qualitative response models. Use of linear algebra and statistical packages. The emphasis of the course is on theory via practical applications.
16-220:608 ECONOMETRICS II
Time series analysis, focusing on estimation, inference and validation. Specifications examined include (vector autoregressive) models and a variety of nonlinear models including GARCH. Estimation techniques examined include maximum likelihood, generalized methods of moments (GMM) and various other techniques such as simulated GMM. Inference techniques examined include standard asymptotics, unit root asymptotics and bootstrapping. Additional topics include Monete Carlo methods, predictive accuracy testing, model selection, unit roots and cointegration; as well as topics in financial and macroeconometrics.
16-220:609 APPLIED ECONOMETRICS FOR MICROECONOMICS
Prerequisite:16-220:607 or permission of instructor
Econometric tools for microeconomic models are discussed relying on recent applied econometric papers. Tools include qualitative choice models, survival analysis, and advanced regression methods (e.g., panel data techniques and limited dependent variables).
16-220:610 APPLIED ECONOMETRICS FOR MACROECONOMICS
Prerequisite: 16-220:607 or permission of instructor
Econometric tools for macroeconometric time series models. Topics include exogeneity tests, spectral analysis, non-stationarity, the Kalman filter, structural shifts, prediction, nonlinear models and nonparametrics. Recent macroeconomic time series papers are discussed.
B. Field Courses
16-220:611: HISTORY OF ECONOMIC THOUGHT
16-220:612 EUROPEAN ECONOMIC HISTORY
The growth of Europe from the sixteenth century to the present. Topics include mercantilism; industrialization, the standard of living debate; international economic integration in the nineteenth century; the gold standard, the Great Depression, the economics of war and peace, and the EC.
16-220:613 AMERICAN ECONOMIC HISTORY
The development of the American economy from colonial times to the present. Topics that will receive particular attention include industrialization, agriculture, slavery, monetary and financial developments, the Great Depression, and postwar growth.
16-220:620 ECONOMICS OF THE LABOR MARKET
Labor supply (static and dynamic models and empirical analyses). Labor demand. Wage differentials and unemployment. Applications to policy problems: economics of welfare system, and low-income labor markets.
16-220:621 LABOR ECONOMICS
16-220:622 INDUSTRIAL ORGANIZATION I
Models of imperfect competition. Applications to price discrimination, vertical integration, product quality, advertising, and research and development. Strategic models of entry deterrence and contracting. Implications for antitrust policy. Empirical research on industry structure, conduct, and performance.
16-220:623 INDUSTRIAL ORGANIZATION II
Natural monopoly and rate of return regulation. Optimal pricing including Ramsey, nonlinear, and peak-load pricing. Regulation models with uncertainty or asymmetric information. Optimal contracting and auditing. Price regulation. Regulation of entry and product quality. Regulation of price, entry, product quality, health, safety and the environment. Empirical research on performance in regulated industries.
16-220:624 PUBLIC FINANCE I
Welfare theory, collective action, externalities, public goods, benefit-cost analysis, social welfare programs, social insurance.
Tax policy analysis. Topics include optimal taxation, tax incidence analysis, the efficiency costs of taxation, and the measurement of the effects of taxation on economic behavior.
Problems of resource allocation for promoting economic growth and structural change in the context of poverty and inequality.
16-220:627 Economic Development II
Selected topics in contemporary development economics.
16-220:628 INTERNATIONAL ECONOMICS I
Major areas of trade theory are presented including comparative advantage theory, general equilibrium-factor endowments trade theory, and commercial policy. Recent developments such as imperfect competition and uncertainty models of international trade theory are included.
16-220:629 INTERNATIONAL ECONOMICS II
Analysis of advanced topics in the area of international finance, international monetary economics and open economy macroeconomics. Topics may include: International business cycles; international financial markets; current account and fiscal policy; sovereign debt; exchange rate regimes; speculative attacks; international policy coordination; growth in the international economy.
16-220:630 FINANCIAL ECONOMICS I
16-220-631 FINANCIAL ECONOMICS II
16-220:640 ADVANCED TOPICS IN MICROECONOMICS
Topics chosen by instructor. May include theory of optimal control, general equilibrium, natural resources, etc.
Selected problems in economic analysis of uncertainty and imperfect information. Emphasis on applications in micro- and macroeconomics.
Introduction to non-cooperative and cooperative game theory that are relevant to economic problems.
Introduction to analysis by experimental methods of selected problems in economic theory, focusing on theory of individual choice under uncertainty and game theory, as well as bargaining theory, industrial organization, social choice theory, and financial markets.
Traditional treatment of monetary theory and policy. Topics include: the origins of money, money demand, money supply, Keynesian, Classical and New Classical models, money and inflation, money and output, monetary policy, rules versus discretion and monetary standards.
Research in microeconomic theory. Papers by students, faculty, and visiting scholars on topics selected by the seminar participants.
Consists of two parts: (i) Several lectures reviewing topics and controversies at the frontier of macroeconomics, presented by instructor and discussed by class; (ii) papers on current topics, presented by students and discussed by instructor and other students. Emphasis on development and analytical skills and use of empirical and theoretical tools. Topics to be considered will be mutually agreed upon, and could include (but need not be limited to) the following: causality in macroeconometric models, testing asset pricing models and cointegration.
Advanced topics in monetary theory covering both micro and macro aspects of the field.
Statistical inference in econometrics from Bayesian and non Bayesian points of view. Special topics of current interest are covered including inference on structural shifts, model selection, Kalman-filter models and duration dependent models.
Application of econometric methods for estimation of parameters in an economic relationship as may be specified in a micro/macro generally interdependent simultaneous system model involving use of a body of data cross section and/or time series.
Advanced topics with emphasis on the current controversies in the field.
Special topics in labor economics, varying from year to year. Past topics have been: economics of transfer programs, economics of health, economics of fertility. Students are expected to complete a project for the course and to present a seminar on its results at the end of the semester.
Course varies in content depending upon faculty and student interests. Generally, special attention is paid to current topics which will stimulate student dissertation research.
Advanced topics in development economics emphasizing skills of modelling and estimation.
Selected topics in recent research in economic history.