Specific expenditure programs such as defense, health care, education, social insurance, and welfare are studied, as well as specific taxes. Each student writes a term paper. This course examines the organizational principles of economic systems and compares the alternative approaches taken to resource allocation and income distribution in a variety of countries. Differences among capitalist countries such as the U.S., Japan, and Germany will be stressed, and much attention will be given to the current market reform efforts in the formerly socialist countries of eastern and central Europe, in Russia, and in China. Each student will write a research paper.
Students study the nature and consequences of international economic relations.
Specialization and exchange are examined by reference to the theory of comparative advantage. Government policies such as tariffs, quotas, and exchange controls are studied, stressing their effects on incomes and welfare. Managerial economics studies the application of microeconomic theory to the practical problems which managers confront in business, governmental and non-profit organizations. The purpose of the course is to introduce you to important management issues and to show you how to use analytical and empirical tools to clarify and solve managerial problems. More specifically, the course demonstrates the application of calculus-based optimization techniques, organization theory, game theory, and decision theory to the resource allocation decisions and competitive strategies of managers.