University of Guelph 2003-2004 Undergraduate Calendar

XII--Course Descriptions, Economics

Department of Economics.

For courses without semester designations, please check with the department. Advance schedules are available in the department.

ECON*1050 Introductory Microeconomics S,F,W(3-0) [0.50]

An introduction to the Canadian economy: price determination, market structure and resource allocation; the behaviour of consumers and firms; market intervention by government. Some of the economic issues addressed may include agricultural price supports, rent control, the NAFTA, environmental regulation, price discrimination, pay equity, and taxation. (Also offered through distance education format.)

Equate(s): ECON*1200

ECON*1100 Introductory Macroeconomics S,F,W(3-0) [0.50]

The Canadian economy: aggregate performance and policy; an analysis of the determinants of national income, employment and the price level, the role of government monetary and fiscal policies in improving the rate of economic growth. (Also offered through distance education format.)

Prerequisite(s): ECON*1050

ECON*2000 Contemporary Economic Problems in Canada W(3-0) [0.50]

A study of important socio-economic issues in Canada using the basic principles of macro and microeconomics. Discussion and analysis of population, poverty, foreign ownership, regional development, etc.

Prerequisite(s): ECON*1050, ECON*1100

ECON*2100 Economic Growth and Environmental Quality F(3-0) [0.50]

An examination of the implications of economic growth on the quality of the environment, employing the basic principles of economic analysis. (Also offered through distance education format.)

Prerequisite(s): ECON*1050

ECON*2150 Introduction to Business Economics S,F,W(3-0) [0.50]

A course intended for those with an interest in economics as it pertains to business. (Not intended for students in Economics or Commerce programs.) Four modules to be completed: two on microeconomic principles and their application to business problems; one using on-line databases and electronic publications; one from a list of applied topics. (Offered through distance education format only.)

Restriction(s): ECON*1050, ECON*1100 or registration in the Bachelor of Commerce Program

ECON*2200 Industrial Relations F(3-0) [0.50]

This is a survey course of the Canadian industrial relations system. Among the topics covered are: the growth and objectives of unions, the legal framework of collective bargaining, the effects of unions on industry and the economy, industrial conflict and public policies.

Prerequisite(s): ECON*1050

ECON*2310 Intermediate Microeconomics S,F,W(3-1) [0.50]

The analysis of the behaviour of households and firms under alternative assumptions and market conditions. (Also offered through distance education format.)

Prerequisite(s): ECON*1050, (AGR*1101/2 or ECON*1100)

ECON*2410 Intermediate Macroeconomics S,F,W(3-1) [0.50]

The analysis of closed economy models of aggregate spending, output, employment, prices and interest rates under alternative assumptions about the nature of labour, product and financial markets. The analysis of theories of consumption, investment and money demand. (Also offered through distance education format.)

Prerequisite(s): ECON*1050, ECON*1100

ECON*2420 Canadian Economic History U(3-0) [0.50]

This course surveys the development of the Canadian economy from the aboriginal economy to the early fur and fish trades, agricultural settlement, industrialization, the Great Depression, growth of the public sector and fast economic growth after World War Two. Particular attention is paid to international economic relations and to regional differences within Canada.

Prerequisite(s): ECON*1050, (ECON*1100 or HIST*2450)

ECON*2500 Introduction to the Economics of Law, Crime and Enforcement U(3-0) [0.50]

An introduction to the economic analysis of law, participation in illegal labour and product markets and optimal law enforcement. Topics covered may include the economics of property, contract and tort law, the costs of crime and crime control, measurement of deterrence, regulatory enforcement, trade-offs in the likelihood and severity of punishment and tax evasion.

Prerequisite(s): ECON*1050

ECON*2650 Introductory Development Economics F(3-0) [0.50]

This course introduces students to the economic experience of developing countries, the ways in which economists try to understand it, and the implications for policy. The basic tools of economic analysis as taught in the introductory courses are used to analyse topics that may include theories of growth, trade, education, foreign investment, exchange rates, labour markets, the role of government, environmental sustainability and strategies related to agriculture, population, industry and investment.

Prerequisite(s): ECON*1050, ECON*1100

ECON*2720 Business History F(3-0) [0.50]

This course surveys the evolution of economic activity and organization from the industrial revolution to the present. Particular attention is given to the changing relationship between technology and business organization, the shift from proprietorship to corporation and the rise of multinational enterprise. Other topics may include the relationship between business and government, the role of the entrepreneur in the process of technical change and the evolution of work patterns and standards of living.

Prerequisite(s): ECON*1050, (ECON*1100 or any 1.50 credits in history)

ECON*2740 Economic Statistics F,W(3-1) [0.50]

A course designed to prepare students conceptually and mathematically for ECON*3560, Theory of Finance and ECON*3740, Introduction to Econometrics. Topics include the summation operator, descriptive statistics, frequency distributions, probability and statistical independence, the binomial distribution, algebra of the expectation operator, discrete bivariate distributions, covariance, variance of a linear function of random variables, the normal and t distributions, sampling distributions, point and interval estimation, hypothesis testing and an introduction to ordinary least squares. Additional topics may be included at the instructor's discretion. Examples and assignment questions are drawn from economics and finance.

Prerequisite(s): ECON*1050, ECON*1100, (1 of MATH*1000, MATH*1050, MATH*1080, MATH*1200)

ECON*2770 Introductory Mathematical Economics F,W(3-1) [0.50]

This course applies the elements of calculus and matrix algebra to simple microeconomic and macroeconomic problems.

Prerequisite(s): ECON*1050, ECON*1100, (1 of MATH*1000, MATH*1080, MATH*1200)

ECON*3200 Economics of Industrial Relations U(3-0) [0.50]

An economic analysis of the Canadian industrial relations system. Emphasis is placed on understanding the theoretical implications of unions and collective bargaining practices for wage and employment outcomes. Empirical analysis of the nature and growth of unions and of their effect on industrial conflicts, public policy and the performance of the economy.

Prerequisite(s): ECON*2310

ECON*3300 Economics of Health and the Workplace U(3-0) [0.50]

This course will introduce students to concepts of health economics with particular relevance to workplace issues. Topics to be covered include the determinants of health, the demand for and supply of health care, the market for health care providers, health insurance, public and private, the role of health insurance in the labour market, whether not having to provide comprehensive health insurance to their workers gives Canadian firms an edge over their American competitors, workplace health risks and their effects on working conditions and salaries, workplace wellness programs and their evaluation, and the analysis of the cost effectiveness of health interventions.

Prerequisite(s): ECON*2310, ECON*2740

ECON*3500 Urban Economics U(3-0) [0.50]

This course is designed to apply the basic principles of intermediate economic theory to problems facing urban areas with emphasis on Canada. Topics to be covered will include such things as housing, urban poverty, municipal financing, transportation.

Prerequisite(s): ECON*2310

ECON*3510 Money, Credit and the Financial System U(3-0) [0.50]

Economics of the payments system, banking and other financial institutions and of credit markets. Bank of Canada operations and policy instruments. Monetary theory and policy.

Prerequisite(s): ECON*2310, ECON*2410

ECON*3520 Labour Economics U(3-0) [0.50]

A study of the labour market, wage determination and the relationship between wages, employment, and prices.

Prerequisite(s): ECON*2310

ECON*3530 Industrial Organization U(3-0) [0.50]

This course examines industries in which firms have the potential to exercise market power. Topics include how the competitive environment affects the behaviour of firms, measuring the extent of market power on welfare. The performance of markets under monopolies, dominant firms, cartels and oligopolies is examined and related aspects of Canadian competition policy and regulations are discussed.

Prerequisite(s): ECON*2310, ECON*2770

ECON*3560 Theory of Finance F(3-0) [0.50]

Capital budgeting and long-term finance and investment decisions by firms and individuals. Introduction to capital asset pricing under uncertainty and to concept of efficient markets. Major emphasis is on corporate finance. (Also offered through distance education format.)

Prerequisite(s): ECON*2310, (1 of ECON*2740, PSYC*2010, STAT*2040, STAT*2050, STAT*2060, STAT*2080, STAT*2090, STAT*2100, STAT*2120)

ECON*3580 Economics of Regulation U(3-0) [0.50]

A study of the economic reasons for government intervention in the marketplace. Emphasis will be placed on the role of crown corporations, regulatory agencies, regulation rules and public sector price-setting in the Canadian economy.

Prerequisite(s): ECON*2310

ECON*3600 Macroeconomics in an Open Economy U(3-0) [0.50]

International macroeconomic issues; the balance of payments; models of exchange rate determination; foreign exchange risk and covered interest arbitrage; alternative exchange rate regimes; small versus large economies; monetary and fiscal policy in an open economy.

Prerequisite(s): ECON*2410, ECON*2740, ECON*2770

ECON*3610 Public Economics U(3-0) [0.50]

This course examines the interventionist role of government in the economy. It examines several sources of market failure which are used to justify government intervention. These include public goods, externalities and redistribution. The course also evaluates alternative sources of government revenue from the perspectives of both equity and efficiency. These include the personal and corporate income taxes, sales taxes and wealth taxes.

Prerequisite(s): ECON*2310

ECON*3620 International Trade U(3-0) [0.50]

An introduction to the general equilibrium analysis of international trade, international factor movements and commercial policy. Special emphasis is given to Canada's international trade relationships.

Prerequisite(s): ECON*2310

ECON*3660 Economics of Equity Markets U(3-0) [0.50]

This course studies the economic literature regarding the determination of security prices and the operation of the stock market. (Also offered through distance education format.)

Prerequisite(s): ECON*3560

ECON*3710 Advanced Microeconomics S,F(3-1) [0.50]

An in-depth treatment of consumer and producer theory leading to the general equilibrium model of the economy and the study of welfare economics.

Prerequisite(s): ECON*2310, ECON*2770

ECON*3720 History of the World Economy since 1850 U(3-0) [0.50]

Study of the evolution of the world economy since 1850. Topics may include the costs and benefits of empire to Britain, Anglo-German trade rivalry, the rise to prominence of "settler colonies", economic growth in the Third World, reparations and war debt, agricultural overproduction, origins of the Great Depression, the 1945-1973 boom in world production and trade.

Prerequisite(s): ECON*1050, ECON*1100, (1 of ECON*2310, EURO*2070, HIST*2450, HUMN*2070, ISS*2010)

ECON*3730 Europe and the World Economy to 1914 U(3-0) [0.50]

This course surveys the world economy with a particular focus on the industrial revolution in Europe, demographic change, the rise to prominence of the 'settler colonies', the origins of international inequality and the experience of globalization during the later nineteenth century. Particular attention is given to international trade, capital flows and migration.

Prerequisite(s): ECON*1050, ECON*1100, (1 of ECON*2310, EURO*2070, HIST*2450, HUMN*2070, IDEV*2010)

ECON*3740 Introduction to Econometrics U(3-1) [0.50]

A computer-based course involving the specification and estimation of economic models and the testing of economic hypotheses using appropriate test statistics. Topics include the summation operator, expectation operator, ordinary least squares estimation, dummy variables, seasonality, multicollinearity, heteroskedasticity, autocorrelation, data sources (including uses of the Data Resource Centre). Additional topics may be included at the instructor's discretion. Heavy emphasis will be placed on applications and writing up results. Some use of spreadsheet software (e.g. QuattroPro, Excel) and statistical software (e.g. TSP, SHAZAM) will be required.

Prerequisite(s): ECON*2310, ECON*2410, ECON*2740, ECON*2770

ECON*3770 Mathematical Economics and Game Theory W(3-1) [0.50]

This course extends the application of mathematical techniques to problems in both macroeconomics and microeconomics: comparative statics; the Envelope Theorem; Euler's Theorem; Kuhn-Tucker conditions; integration with continuous compounding; special matrices, vector spaces and quadratic forms. Approximately half the course is devoted to static and dynamic game theory with both complete and incomplete information and uncertain outcomes.

Prerequisite(s): ECON*2310, ECON*2410, ECON*2770

ECON*4500 Topics in Urban Economics U(3-0) [0.50]

This course will investigate selected theoretical and applied topics in urban economics in depth. Among topics which might be treated are location theory, the theory of spatial structure, transportation economics, the economics of housing, the economics of land use regulation, urban public finance.

Prerequisite(s): ECON*3710, ECON*3740

ECON*4640 Applied Econometrics F(3-0) [0.50]

This course discusses the classical linear regression model and its extensions including generalized least squares and the theory and application of F tests. The maximum likelihood principle is introduced, as are alternative approaches to testing, e.g. LM, LR and Wald tests. Additional topics may be included at the instructor's discretion. Matrix algebra is used and proof of the Gauss-Markov theorem is included, but discussion of proofs is in general limited in order to allow substantial applications to data using statistical software such as TSP, SHAZAM, SAS, STATA.

Prerequisite(s): ECON*3740, ECON*3770

Equate(s): ECON*4740

ECON*4710 Advanced Topics in Microeconomics U(3-0) [0.50]

An intensive study of the scope, methodology, and content of contemporary microeconomics; selected topics in partial and general equilibrium analysis.

Prerequisite(s): ECON*3710, ECON*3770

ECON*4720 Topics in Economic History U(3-0) [0.50]

The use of economic theory to analyse the process of historical economic change.

Prerequisite(s): ECON*2310, 12.50 credits

ECON*4750 Topics in Public Economics U(3-0) [0.50]

This course examines selected topics related to the expenditure and taxation functions of government. Topics may include issues in public good theory such as the free rider problem, the problem of eliciting truthful revelation of preferences and the use of taxes as a corrective device for externalities. The course may also address optimal taxation as well as tax evasion. Throughout this course the trade-off between efficiency and equity is emphasized.

Prerequisite(s): ECON*3710, ECON*3770

ECON*4760 Topics in Money and Finance U(3-0) [0.50]

Selected topics in monetary economics such as theories of the demand for and supply of money, the nature and role of private banks and central banks, the transmission processes of monetary policy and in the theories of corporate finance and the pricing of financial assets.

Prerequisite(s): ECON*3600, ECON*3710, ECON*3740

ECON*4780 Topics in Industrial Organization U(3-0) [0.50]

Selected topics in the theoretical and empirical study of the organization and performance of firms and markets. Topics may include: strategic behaviour of firms such as actions to deter entry of rivals, pre-emptive choice of location and product quality, and research and development; the regulation of firms under uncertainty; econometric analysis of the use of market power, and; modern advances in the theory of the firm.

Prerequisite(s): ECON*3710, ECON*3740, ECON*3770

ECON*4790 Topics in Labour Market Theory U(3-0) [0.50]

Selected topics in advanced labour market theory with emphasis on empirical evidence for the Canadian labour market.

Prerequisite(s): ECON*3710, ECON*3740, ECON*3770

ECON*4800 Theory of Strategic Management U(3-0) [0.50]

This course is about the creation and maintenance of long-term vision for the corporation from the perspective of the general manager. It is concerned with both the determination of strategic direction and the management of the strategic process. ECON*4800 may not be counted as a 4000 level economics course for purposes of satisfying the minimum 4000 level economics course requirements in the B.A. Honours Economics or B.A. Management Economics programs.

Prerequisite(s): AGEC*3320, ECON*2740, completion of semester 5

ECON*4810 Advanced Macroeconomic Theory U(3-0) [0.50]

The theory of complex aggregate economic models; their assumptions, construction, and use in the analysis of macroeconomic activity.

Prerequisite(s): ECON*3600, ECON*3740, ECON*3770

ECON*4830 Economic Development U(3-0) [0.50]

A study of the theories, problems and policies of economic growth with special reference to underdeveloped countries.

Prerequisite(s): ECON*2310

ECON*4840 Applied Econometrics II U(3-0) [0.50]

This is a continuation of ECON*4640 and deals with asymptotic theory, maximum likelihood estimation, instrumental variables, simultaneous equation models and selected topics such as models for limited dependent variables, models for panel data, ARCH models, units roots and error correction models. There will be applications to data using statistical software.

Prerequisite(s): ECON*4640

ECON*4860 Seminar in Current Economic Problems U(3-0) [0.50]

Examination in a seminar setting of selected contemporary economic problems.

Prerequisite(s): ECON*3600, ECON*3710, ECON*3740, or permission of instructor

ECON*4870 Mathematical Economics: Dynamics U(3-0) [0.50]

The purpose of this course is to introduce the student to the techniques and application of dynamic analysis. The discussion concentrates on systems of differential equations, optimal control theory, etc.

Prerequisite(s): ECON*3600, ECON*3710, ECON*3770

ECON*4880 Topics in International Economics U(3-0) [0.50]

Selected topics involving the advanced analysis of the causes and effects of trade and financial flows and international factor movements.

Prerequisite(s): ECON*3600, ECON*3710, or permission of instructor

ECON*4890 History of Economic Thought U(3-0) [0.50]

A study of the development of economic theory, the tools of economic analysis, and the evaluation of economics as a science, together with an analysis of the circumstances affecting this development.

Prerequisite(s): ECON*2310, ECON*2410

ECON*4900 Special Study in Economics S,F,W(3-0) [0.50]

The special study option is designed to provide senior undergraduate students with an opportunity to pursue an independent course of study. The subject matter will be related to regular 4000 level courses. Students will be required to submit a major paper/report on the subject matter studied. Formal agreement between the student and instructor of the course is required as well as the approval of the department chair or designate. One only of ECON*4900/ECON*4910 may count as one of the required minimum number of 4000 level economics courses in the B.A. programs.

Prerequisite(s): ECON*3600, ECON*3710, ECON*3740

ECON*4910 Special Study in Economics S,F,W(3-0) [0.50]

Same description as for ECON*4900.

ECON*4930 Environmental Economics U(3-0) [0.50]

An advanced treatment of the interrelationship between economic activities and the state of the natural environment from the economists' point of view.

Prerequisite(s): ECON*2410, ECON*3710

ECON*4940 Model Building and Economic Analysis U(3-0) [0.50]

Progress in economic theory is increasingly made by studying the properties of small artificial economies or competitive general equilibrium models. This course examines the construction of competitive general equilibrium models and outlines the computational techniques required to solve them. These models may be used to study a range of subject areas, including topics in macroeconomics with a particular emphasis on business cycle analysis or the economics of the environment. The subject areas will vary from year to year and are chosen at the instructor's discretion.

Prerequisite(s): ECON*3740

ECON*4950 Applied Economics Research Project W(3-0) [0.50]

Students plan, develop and conduct a research project under individual faculty supervision and structured co-ordination. The supervisor is a faculty member with expertise in the area being investigated. The co-ordinator is a faculty member who leads group sessions on research project objectives, expectations, potential topics, data sources, available software and other relevant issues. Students will also present proposals, progress reports and final products in this group setting.

Prerequisite(s): ECON*3770, ECON*4640


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