Department of Economics
Division of Social Sciences
North Hall 2127
Telephone: (805) 893-3670
Undergraduate Office: (805) 893-2981
Graduate Office: (805) 893-2205
Undergraduate e-mail: ugrad@econ.ucsb.edu
Graduate e-mail: grad@econ.ucsb.edu
Website: www.econ.ucsb.edu (will open in a new browser window)
Department Chair: Peter Kuhn
Contents:
- Faculty
- Overview
- Senior Honors Program
- Five-Year Combined Bachelor's/Master's Program
- Undergraduate Program
- Graduate Program
- Economics Courses
Robert W. Anderson, C.P.A., B.A., UC Santa Barbara, Lecturer
Phiip Babcock, Ph.D., UC San Diego, Asssistant Professor, (labor economics, human capital, social dynamics, networks)
Kelly Bedard, Ph.D., Queen’s University, Associate Professor (labor economics, economics of education, health economics)
Theodore C. Bergstrom, Ph.D., Stanford University, Professor and Aaron and Cherie Raznick Chair (microeconomic theory, public economics, evolutionary economics)
Javier Arturo Birchenall, Ph.D., University of Chicago, Assistant Professor (growth and development, population economics, labor economics, economics history)
Henning Bohn, Ph.D., Stanford, Professor (macroeconomics, fiscal and monetary policy, public economics, international economics)
Gary Charness, Ph.D., UC Berkeley, Associate Professor (experimental and behavioral economics, game theory, labor economics, )
William S. Comanor, Ph.D., Harvard University, Professor (industrial organization, applied microeconomics)
Robert L. Crouch, Ph.D., University of Essex, Professor (economic theory)
Robert T. Deacon, Ph.D., University of Washington, Professor (natural resource and environmental economics, public finance)
Stephen J. DeCanio, Ph.D., Massachusetts Institute of Technology, Professor (economics of the global environment, economic history, econometrics and statistics, applied microeconomics)
Olivier Deschenes, Ph.D., Princeton University, Assistant Professor (labor economics, applied econometrics, econometrics)
H. E. Frech, III, Ph.D., UC Los Angeles, Professor (industrial organization, economic theory, health economics, law and economics)
Rodney J. Garratt, Ph.D., Cornell University, Professor (game theory, experimental economics, consumer choice)
Coby Harmon, C.P.A., B.A., UC Santa Barbara, Lecturer (accounting)
Marek Kapicka, Ph.D., University of Chicago, Assistant Professor (macroeconomics, dynamic public finance)
Tee Weeachart Kilenthong, Ph.D., University of Chicago, Assistant Professor (macroeconomics, contract theory, developmental economics )
Charles D. Kolstad, Ph.D., Stanford University, Professor (environmental and resource-energy economics, industrial organization)
Clement G. Krouse, Ph.D., UC Los Angeles, Professor (industrial organization, capital theory)
Peter J. Kuhn, Ph.D., Harvard University, Professor (labor economics)
Finn Kydland, Ph.D., Carnegie Mellon University, Professor and Jeffrey Henley Chair, Nobel Laureate 2004 (macroeconomics, economic growth, monetary economics, international economics)
Stephen LeRoy, Ph.D., University of Pennsylvania, Professor (finance)
Gary Libecap, Ph.D., University of Pennsylvania, Professor, (property rights, economics and law, natural resource economics, economic history)
Lisa Maass, C.P.A., B.A., UC Santa Barbara, Lecturer (accounting)
John Marshall, Ph.D., Massachusetts Institute of Technology, Professor (economic theory, economics of uncertainty)
Neeru Mehra, M.B.A., Columbia University, Lecturer (finance)
Rajnish Mehra, Ph.D., Carnegie Mellon University, Professor (capital markets, corporate finance, international finance, capital and growth theory)
W. Douglas Morgan, Ph.D., UC Berkeley, Professor (public finance, applied microeconomics, water-resource economics)
Mary J. Nisbet, Ph.D., University of Glasgow, Senior Lecturer with Security of Employment (finance, accounting)
Glenn Owen, C.P.A., B.A., UC Los Angeles, Lecturer (accounting)
Cheng-Zhong Qin, Ph.D., University of Iowa, Professor (microeconomics, game theory)
Henry Sander, C.P.A., B.A., University of Connecticut, Lecturer (accounting)
Nicholas J. Schneider, B.A., J.D., C.P.A., Lecturer (tax, business law)
Jati K. Sengupta, Ph.D., Iowa State University, Professor (econometrics, operations research, economic development)
Perry Shapiro, Ph.D., UC Berkeley, Professor (microeconomic theory, public economics, econometrics)
Jon Sonstelie, Ph.D., Northwestern University, Professor (urban economics, public finance)
Douglas Steigerwald, Ph.D., UC Berkeley, Professor (econometrics, finance, environmental economics)
Charles Stuart, Ph.D., University of Lund, Professor (public finance, economic theory, law and economics)
Richard B. Watson, Ph.D., UC Santa Barbara, Lecturer (accounting)
Alec P. Alexander, Ph.D., UC Berkeley, Professor Emeritus (microeconomics, organization theory)
Mortimer Andron, Ph.D., University of Illinois, Professor Emeritus (finance, investments)
Donald R. Loster, C.P.A., B.S., Woodbury College, Lecturer Emeritus (accounting)
Walter J. Mead, Ph.D., University of Oregon, Professor Emeritus (natural resource economics)
Lloyd J. Mercer, Ph.D., University of Washington, Professor Emeritus (economic history, water resource economics, microeconomic theory)
Llad Phillips, Ph.D., Harvard University, Professor Emeritus (labor economics, econometrics, economics of criminal justice)
John E. Pippenger, Ph.D., UC Los Angeles, Professor Emeritus (open economy-macroeconomics, monetary economics)
John G. Traller, C.P.A., M.B.T., University of Southern California, Lecturer Emeritus (accounting)
Harold L. Votey, Jr., Ph.D., UC Berkeley, Professor Emeritus (economics of criminal justice, international trade, economic development)
The undergraduate programs in economics, business economics, and economics/mathematics are designed to serve several objectives. Completed in combination with other courses in the College of Letters and Science, the majors provide the opportunity for general cultural and intellectual development. They are particularly useful as preparation for professions such as law, journalism, and accounting. The economics and economics/mathematics majors provide a solid foundation for graduate study in economics or administration, and the business economics major is a good basis for graduate work in administration and management.
Academic counseling is available for undergraduates from undergraduate advisors and peer advisors, and for graduate students from the advisor for graduate affairs.
The Department of Economics encourages majors to participate in the Education Abroad Program (EAP) and the University of California, UCSB Washington Center option. In most cases, EAP courses can be substituted for equivalent offerings of the Department of Economics to fulfill major requirements.
Students with a bachelor’s degree in economics who are interested in pursuing a California Teaching Credential should contact the credential advisor in the Graduate School of Education as soon as possible.
The senior honors program in the Department of Economics consists of Economics 196A-B. This two-quarter seminar sequence allows a small group of students to work closely with a faculty member, and to do independent research in economics with a culminating project at the end of the second quarter. Access to the 196 series requires the completion of Economics 100A-B with a 3.50 average, and an overall grade-point average of at least 3.5. Students in the honors program will be granted access to any master’s level course for which they meet the prerequisite, and will be encouraged to take master’s level courses in place of undergraduate courses.
Students who earn A grades in the 196 series will graduate with distinction in the major.
Five-Year Combined Bachelor's/Master's Program
The Department of Economics offers a program allowing students to earn a combined bachelor of science degree in engineering and a master of arts degree in economics with a business economics emphasis. See the description below under "Graduate Program."
Undergraduate Program
Before admission to the economics or business economics major, students must complete all economics preparation for the major courses with a grade-point average of 2.85 or above; these courses may not be taken on a passed/not passed basis. Students may declare a pre-economics/business economics major after they have completed at least three courses required for the pre-major with at least a 2.85 grade-point average in all pre-major courses completed at that time. Students who declare the pre-major are responsible for satisfying degree requirements in effect at the time they declare the major. Pre-major status does not, however, guarantee admission to full major status. Students must maintain a continuous 2.00 grade-point average in all major courses (preparation and upper-division) while attending the University of California. At its discretion, the department may discontinue students from the major who do not maintain the continuous 2.00 grade-point average in all pre-major and major courses. When preparation requirements are satisfied, students must complete a change of major petition, available in the Economics Undergraduate Office.
Preparation for the major. To qualify for admission into the economics major, students must complete Economics 1, 2, PSTAT 120A, and Mathematics 3A-B-C with a GPA of 2.85 or above. Writing 109AC or 109EC or 109SS must be completed with a grade of C or above. No grade lower than C- in pre-major courses will be accepted.
Upper-division major. Forty-four upper-division units in economics, including Economics 100A, 100B, 101 or 105, 100C,140A, and 140B are required. Five upper-division economics elective courses from the following: Economics 106, 114, 115, 116A-B-C, 117A, 120, 122, 130, 133, 134A-B, 135, 143, 150A-B, 152, 155, 170, 171, 175A-B, 180, 181, 184; one course may be chosen from the following: Economics 111, 112A-B, 113A-B, 119, 128, 160, 183. The following restrictions apply to the major: Economics 109 may not be used to fulfill upper-division requirements; credit is not allowed for both Economics 100A and 104A, 100B and 104B, or 101 and 105. A maximum of 12 units of Economics 199 will apply to the upper-division major.
Note for prospective transfer students: Transfer students starting fall 2008 who wish to declare the Economics major, must complete the following four courses with a 2.75 grade-point average before admission to UCSB: one microeconomics course, one macroeconomics course, and two calculus courses. Once admitted to UCSB, students who have not yet completed all of the pre-major courses must complete the remaining courses with a UC grade-point average of 2.85 or better. Transfer grades (from a non-UC school) will not be used in 2.85 grade-point average calculation. Transfer grades will only be used as criteria for admission to UCSB in one of the economics majors.
Bachelor of Arts - Business Economics
Preparation for the major. To qualify for admission into the business economics major, students must complete Economics 1, 2, 3A, 3B, and PSTAT 5E or PSTAT 120A and Math 34A-B or 3A-B with a grade-point average of 2.85 or above. In addition, students must complete Writing 109AC or 109EC or 109SS with a grade of C or above. (Note: Mathematics 3A-B are prerequisites to some upper-division economics courses.) No grade lower than C- in pre-major courses will be accepted.
Upper-division major. Forty upper-division units in business economics, including Economics 100A or 104A, 100B or 104B, 101 or 105, and 134A are required. Two upper-division economics electives chosen from the following: Economics 100C, 106, 114, 115, 116A-B-C, 117A, 120, 122,130, 133, 134B, 135, 140A-B-C, 143, 150A-B, 152, 155, 170, 171, 175A-B, 180, 181, 184; Four additional upper-division economic electives from either previous list or from the following: 111, 112A-B, 113A-B, 118, 119, 128, 132, 136A-B-C, 137A-B, 138A-B, 139, 160, 182, 183, 185, 189, 194AA-ZZ. The same course(s) may not be used to fulfill requirements in both sections listed above. The following restrictions apply to the major: Economics 109 may not be used to fulfill upper-division requirements; credit is not allowed for both Economics 100A and 104A, 100B and 104B, or 101 and 105. A maximum of 12 units of Economics 199 will apply to the upper-division major.
Note for prospective transfer students: Transfer students starting fall 2008 who wish to declare the business economics major, must complete the following four courses with a 2.75 grade-point average before admission to UCSB: one microeconomics course, one macroeconomics course, one statistics course, and one calculus course. Once admitted to UCSB, students who have not yet completed all of the pre-major courses must complete the remaining courses with a UC grade-point average of 2.85 or better. Transfer grades (from a non-UC school) will not be used in 2.85 grade-point average calculation. Transfer grades will only be used as criteria for admission to UCSB in one of the economics majors.
The emphasis will appear on the student’s official transcript. The degree is listed as a bachelor of arts in business economics.
Preparation for the major. See the preparation for the major requirements for the business economics major.
Upper-division major. Fifty-three upper-division units in economics, including the following required courses: Economics 100A or 104A, 100B or 104B, 101 or 105 and 134A. Two upper-division economics electives must be chosen from the following: Economics 100C, 106, 114, 115, 116A-B-C, 117A, 120, 122, 130, 133, 134B, 135, 140A-B-C, 143, 150A-B, 152, 155, 170, 171, 175A-B, 180, 181, 184. In addition, Economics 118, 136A-B-C and 137A must be taken along with two classes from the following list: Economics 132, 137B, 138A-B, 139, 182, 185, 189. Note: Economics 185 and 189 do not count towards the CPA’s required 36 quarter units of accounting-related courses.
Note for prospective transfer students: Transfer students starting fall 2008 who wish to declare the business economics major, must complete the following four courses with a 2.75 grade-point average before admission to UCSB: one microeconomics course, one macroeconomics course, one statistics course, and one calculus course. Once admitted to UCSB, students who have not yet completed all of the pre-major courses must complete the remaining courses with a UC grade-point average of 2.85 or better. Transfer grades (from a non-UC school) will not be used in 2.85 grade-point average calculation. Transfer grades will only be used as criteria for admission to UCSB in one of the economics majors.
Bachelor of Arts - Economics/Mathematics
Preparation for the major. Before admission to the economics/mathematics major, students must complete all preparation for the major courses with a grade-point average of 2.70 or above; these courses may not be taken on a passed/not passed basis. The following courses are required: Economics 1 and 2; Mathematics 3A-B-C, 5A-B-C, and 8; and PSTAT 120A. No grade lower than C- in pre-major courses will be accepted.
Upper-division major. Forty-four upper-division units are required, including the following courses: Economics 104A-B, 101 or 105, Mathematics 108A-B, 117. Students must also complete Economics 140A-B and 12 upper-division economics elective units chosen from the following: Economics 100C, 106, 114, 115, 116A-B-C, 117A, 120, 122, 130, 133, 134A-B, 135, 143, 150A-B, 152, 155, 170, 171, 175A-B, 180, 181, 184. Economics 109 cannot be used to fulfill the upper-division requirements. Students should consult closely with their advisor in the Department of Economics or Mathematics to assure an appropriate program of study. Note: 104A-B and 105 should be taken fall, winter, and spring of junior year.
Note for prospective transfer students: Transfer students starting fall 2008 who wish to declare the Economics/Mathematics major, must complete the following four courses with a 2.75 grade-point average before admission to UCSB: one microeconomics course, one macroeconomics course, and two calculus courses. Once admitted to UCSB, students who have not yet completed all of the pre-major courses must complete the remaining courses with a UC grade-point average of 2.70or better. Transfer grades (from a non-UC school) will not be used in 2.70 grade-point average calculation. Transfer grades will only be used as criteria for admission to UCSB in one of the economics majors.
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Graduate Program
Applicants must fulfill University requirements for admission to graduate status described in the section "Graduate Education at UCSB" in addition to the departmental requirements for admission detailed below.
Admission
Admissions decisions are made by faculty of the Economics Department. Admission to the program is based on intellectual potential, scholarly promise, academic achievement and programmatic fit. A bachelor’s degree in economics is not required for Admission to the M.A. program However, the department does require that specific courses, particularly economic theory, be passed with distinction (grade B+ or better) Strong mathematical aptitude is needed. At least two quarters of calculus and one basic statistics course are required. One year is recommended.
The Graduate Record Examination (GRE) is required of all applicants to the graduate program. Applicants whose native language is not English, are required to take either the Test of English as Foreign Language (TOEFL) or the International English Language Testing System (ISLTS) exam. Exemptions to this requirement will be considered for those students who have completed an undergraduate or graduate education at an institution whose primary language of instruction is English The minimum TOEFL score for consideration is 550 when taking the paper-based test (PBT), 213 when taking the computer-based test (CBT), and 80 when taking the internet-based test (IBT). The minimum IELTS score for consideration is an Overall Band Score of 7 or higher. TOEFL or IELTS scores must not be more than two years old at the time of application to UCSB.
Degree Requirements
The M.A. may be obtained under either of the two plans described below, both of which require passing a comprehensive examination. There is no thesis option for the M.A. in economics. There is no language requirement for the M.A. degree. Well-prepared students can obtain the M.A. in one year. Plan A is designed for students who wish specifically to acquire the M.A. degree; Plan B is designed for students in the Ph.D. program who wish to acquire the M.A. degree.
Plan A: Thirty-six units of coursework, including 20 units of core courses - Economics 205A-B, 208, and 240A-B - that must be passed with a grade of B or better in each course, along with 16 units of elective field courses. Plan A requires successful completion of a comprehensive examination that covers microeconomic theory and quantitative methods. (Note: All graduate students who follow the comprehensive exam option are required to complete a minimum of 24 units of graduate-level coursework in courses numbered 200-299 or 596.)
Plan B: Thirty-six units of core courses must be completed with a grade of B or better: Economics 204A-B, 210A-B-C-D, 241A-B-C. The Ph.D. preliminary examinations in microeconomic theory and econometrics must be passed with an M.A. Pass or better in order to receive a master of arts degree.
Master of Arts - Economics - Business Economics Emphasis
The M.A. in economics with an emphasis in business economics has the same admission requirements as the M. A. in economics. Well-prepared students can obtain the M.A. in economics with a business economics emphasis in one year. There is no language requirement for the M.A.
Students must complete 36 units of coursework, including 20 units of core courses - Economics 205A-B, 208, and 240A-B, and 16 units of field courses - Economics 234A-B, 240C, and 273A. All courses must be passed with a grade of B or better. Also required is the successful completion of a written comprehensive examination that covers microeconomic theory and quantitative methods.
Five-Year Combined Bachelor of Science Engineering/Master of Arts Economics - Business Economics Emphasis
A program which combines a B.S. in any engineering major (including computer science) with a master of arts in economics with an emphasis in business economics provides an opportunity for outstanding engineering undergraduates to earn both degrees in five years. Information about these programs is available in the College of Engineering Undergraduate Office or from the Department of Economics Graduate Office. Interested students should inform the Economics Graduate Office of their interest in the program at the end of the sophomore year in order to plan their upper-division classes appropriately.
Doctor of Philosophy - Economics
Admission
Admissions decisions are made by the departmental Graduate Admissions Committee, which is chaired by the Director of Graduate Studies. Admission to the program is based on intellectual potential, scholarly promise, academic achievement and programmatic fit. A bachelor’s degree is required, though not necessarily with a major in economics. The department does require that specific courses, particularly economic theory, and econometrics, be passed with distinction. Prospective students are advised to take as much statistics and mathematics as possible: at least one mathematical statistics course a year of calculus and a course in matrix algebra are mandatory. An additional year of calculus, as well as some course work in stochastic processes and linear algebra, is highly recommended.
The Graduate Record Examination (GRE) is required of all applicants to the graduate program. Applicants whose native language is not English, are required to take either the Test of English as Foreign Language (TOEFL) or the International English Language Testing System (ISLTS) exam. Exemptions to this requirement will be considered for those students who have completed an undergraduate or graduate education at an institution whose primary language of instruction is English The minimum TOEFL score for consideration is 600 when taking the paper-based test (PBT), 250 when taking the computer-based test (CBT), and 100 when taking the internet-based test (IBT). Successful applicants typically score above 620 on the CBT, 260 on the PBT or 105 when taking the internet-based test. The minimum IELTS score for consideration is an Overall Band Score of 7 or higher. TOEFL or IELTS scores must not be more than two years old at the time of application to UCSB.
Degree Requirements
Ph.D. students must successfully complete one year of required courses in microeconomic theory (Economics 210A-B-C-D), macroeconomic theory (Economics 204A-B), and econometrics (Economics 241A-B-C). The microeconomic theory and econometrics courses must be completed with a grade of B or better in each course. The macroeconomics courses must be passed with a grade of B+ or better in each course. At the end of the first year, students must pass preliminary examinations in microeconomics and econometrics. Grading categories for the preliminary examinations are Fail, M.A. Pass, Ph.D. Pass, and Ph.D. Pass with Distinction. To proceed in the Ph.D. program, students must receive a Ph.D. Pass or better. Those receiving an M.A. Pass or better on both examinations are entitled to the master of arts degree, as long as they fulfill the Plan B requirements for the M.A. degree specified above.
Ph.D. students take eight elective courses during the second and third years. The electives must include specializations in two fields. The fields are industrial organization, macroeconomic theory and policy, public finance, finance, mathematical economics, econometrics, labor economics, environmental economics and natural resources, and international economics. In the second year, students begin their thesis by writing a research proposal. When completed, the research proposal is defended in an oral examination administered by their doctoral committee, upon which the student advances to candidacy. The goal is to reach this important milestone by the end of the third year. The normal time for completion of the Ph.D. is five years; a few students finish in four years.
The Ph.D. is completed by the submission of a dissertation acceptable to the student’s committee. Defense of the dissertation is at the discretion of the student’s committee.
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Economics Courses
1. Principles of Economics - Micro
(4) Bergstrom, Sonstelie
An introduction to microeconomic analysis. Economic theory related to demand, production, competitive and noncompetitive product markets, input markets, and welfare. Applications of microeconomic theory including its use in evaluating and forming public policy.
2. Principles of Economics - Macro
(4) Staff
Prerequisite: Economics 1.
An introduction to macroeconomic analysis. Analysis of income, employment, and the price level. Applications of macroeconomic theory including its use in evaluating and forming public policy.
3A-B. Financial Accounting
(4-4) Sander, Harmon, Anderson
Prerequisite: For 3B: Economics 3A.
Recommended preparation: Economics 1 and 2
A two-quarter series providing an introduction to the purposes, conceptual framework, measurement principles and reporting issues of accounting. Particular emphasis will be placed on the links between accounting, economics, and finance.
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Note: Upper-division courses are open to full majors only.
100A. Intermediate Microeconomic Theory
(4) Staff
Prerequisites: Economics 1 and 2, or Economics 109; and PSTAT 5E; and Mathematics 34A-B.
Credit not given for both Economics 100A and 104A.
Economic theory relating to demand, production, and competitive product markets with emphasis on applications of theory.
100B. Intermediate Microeconomic Theory
(4) Staff
Prerequisite: Economics 100A.
Credit not given for both 100B and 104B.
Economic theory relating to imperfectly competitive product markets, input market, and welfare, with emphasis on applications. Includes an introduction to game theory.
100C. Intermediate Microeconomic Theory
(4) Bergstrom
Prerequisites: Economics 100A-B or 104A-B.
Covers topics including externalities, law and economics, information technologies, public goods and asymmetric information. These topics are essential to understanding real markets but are currently not included in the Economics 100A-B sequence.
101. Intermediate Macroeconomic Theory
(4) Staff
Prerequisite: Economics 100A.
Credit not given for both 101 and 105.
Recommended preparation: Economics 100B.
Contemporary analysis of income, employment, price level, and public policy using static general equilibrium framework with emphasis on applications of theory. Long term economic growth is also covered.
104A. Intermediate Microeconomic Theory
(4) Qin
Prerequisites: Economics 1 and Economics 2, or 109; PSTAT 5E or 120A; and Mathematics 3A-B-C.
Credit not given for both Economics 104A and 100A.
Economic theory relating to demand, production, and competitive product markets, using techniques from the calculus.
104B. Intermediate Microeconomic Theory
(4) Qin
Prerequisite: Economics 104A.
Credit not given for both Economics 104B and 100B.
Economic theory relating to imperfectly competitive product markets, input markets, and welfare, using techniques from the calculus. Basic capital theory and game theory are covered.
105. Intermediate Macroeconomic Theory
(4) Staff
Prerequisites: Economics 100A or 104A; and Mathematics 3A-B-C.
Not open for credit to students who have completed Economics 101.
Contemporary analysis of income, employment, and price level and public policy using a static general equilibrium framework with emphasis on pure theory and use of techniques from the calculus.
106. Managerial Economics
(4) Sengupta
Prerequisites: Mathematics 3A-B or 34A-B; and, Economics 100A-B or 104A-B.
Economic principles will be applied to practical decision-making situations. Methods of price and output determination, capital budgeting, and choices under uncertainty. Methods of economic analysis and their application will be emphasized.
109. Introduction to Economics
(4) Watson, Phillips
Course cannot be used to satisfy any economics major requirements.
A broad survey of economic principles, including both microeconomics and macroeconomics.
111. Economic History of Ancient Civilization
(4) Staff
Prerequisites: Economics 1 and 2; or Economics 109.
A survey of the economies of the ancient Near East, Egypt, Greece, and Rome with emphasis on important issues in their economic history.
112A. European Economic History to 1850
(4) Staff
Prerequisites: Economics 1 and 2; or Economics 109.
Analysis of the economic development of Europe from the Middle Ages through the English Industrial Revolution.
112B. European Economic History Since 1850
(4) Staff
Prerequisites: Economics 1 and 2; or Economics 109.
Analysis of the economic development of Europe since the English Industrial Revolution.
113A. Economic History of the United States to 1900
(4) Staff
Prerequisites: Economics 1 and 2; or Economics 109.
Key issues and episodes in American economic history, such as the sources of economic growth, slavery and the nineteenth century southern economy. Populism and the rise of regulation, and macroeconomic history.
113B. Twentieth Century United States Economic History
(4) Staff
Prerequisites: Economics 1 and 2; or Economics 109.
A survey of United States economic development in the twentieth century with emphasis on issues related to the growth, instability, and distribution of income. The impact of public policy on economic growth, instability, and income distribution will be an important theme of the course.
114. Economic Development
(4) Staff
Prerequisites: Economics 1 and 2; or Economics 109.
Recommended preparation: Economics 100A.
Applications of economic theory to the problems of developing nations.
115. Environmental Economics
(4) Kolstad
Prerequisite: Economics 100A-B.
Same course as Environmental Studies 175.
Course provides a rigorous treatment of environmental economics. Topics include welfare analysis, ethical dimensions of economic criteria for protecting the environment, measuring the demand for environmental goods, property rights, economic incentives, including marketable permits and emission fees, and regulating risk.
116A. Industrial Organization Principles
(4) Krouse, Comanor
Prerequisite: Economics 100B or 104B.
Not open for credit to students who have completed Economics 116.
Analysis of competition, monopolistic competition, oligopoly, and monopoly theories and practices.
116C. Antitrust Economics
(4) Krouse, Comanor
Prerequisite: Economics 100B or 104B.
The antitrust treatment of monopoly and monopolization, including both horizontal and vertical market arrangements and controls, and in-depth analyses of major antitrust decisions.
117A. Law and Economics I
(4) Frech
Prerequisite: Economics 100B or 104B.
Application of economic analysis to the law. Includes an introduction to common law, constitutional law, and legal processes. Topics may include property law, contract law, and tort law.
118. Financial Accounting Analysis and Planning
(4) Watson, Maass
Prerequisites: Economics 2 or 109; Economics 3B; and PSTAT 5E.
An economic analysis of financial statements in a macroeconomic environment. Topics include evaluation of short term and long term liquidity, profitability, capital structure and the forecast of earnings and financial position using financial and economic models.
119. United States Business History
(4) Staff
Prerequisites: Economics 1 and 2; or Economics 109.
A survey of the development and change of business organization in the United States in the context of the growth and development of the economy and changes in society. Particular attention is paid to the relationship between business and government.
120. Urban and Regional Economics
(4) Sonstelie
Prerequisite: Economics 100B or 104B.
Economic analysis applied to current urban and regional problems.
122. Natural Resource Economics
(4) Deacon
Prerequisite: Economics 100B or 104B.
Same course as Environmental Studies 179.
Microeconomic theory and capital theory applied to problems of conservation and management of natural resources. Analysis of public policy with special emphasis on non-renewable energy resources, management of forests, deforestation and species extinction, and use of fish and game resources.
128. Literature and Economics
(4) DeCanio
Prerequisite: upper-division standing.
Issues in history, political economy and social theory as reflected in major works of literature. Content and readings will vary from quarter to quarter. Extensive writing by students will be required.
130. Public Finance
(4) Stuart
Prerequisites: Economics 100B or 104B; and, Economics 101 or 105.
Fiscal theory and policy. Incidence and effects of taxation, government expenditure programs, and benefit cost analysis.
132. Auditing
(4) Loster, Harmon, Anderson
Prerequisites: Economics 118 and 136A-B-C.
Developing an understanding of concepts and practices for audits of financial statements. Studying professional standards , ethics, and legal liability. The audit process is covered in depth: planning, internal control, audit risk, materiality, evidence, program design, sampling, completing the audit, and reporting.
133. Topics in Macroeconomic Theory
(4) Bohn
Prerequisite: Economics 101 or 105.
Topics may include fiscal policy and government budget deficits, monetary policy and inflation, investment and economic growth, theories of the business cycle, rational expectations and the Lucas critique, optimal taxation and the time consistency of government policies. Content may vary from year to year.
134A. Financial Management
(4) LeRoy
Prerequisite: Economics 100B or 104B.
Discounting of certain future cash flows. Principles of evaluation of investment projects. Demand and supply of investment funds. Risk and the valuation of asset prices. Analysis of a firm’s debt and dividend policies; the effect of taxes and inflation on these policies.
134B. Financial Management
(4) LeRoy
Prerequisite: Economics 134A.
This course is devoted to the testing and application of theories developed in Economics 134A. The specific characteristics and uses of warrants, options, futures, bonds, and stocks are studied. The microcomputer lab may be used for homework projects.
135. Monetary Economics
(4) Bohn
Prerequisite: Economics 101 or 105.
Recommended preparation: Economics 134A.
Survey of monetary theory, the banking system and the supply of money, monetary policy, and current issues.
136A-B-C. Intermediate Accounting
(5-4-4) Harmon, Sander, Maass, Anderson
Prerequisites: Economics 118 (for 136A): Economics 136A (for 136B): Economics 136A-B (for 136C).
An in-depth analysis of recognition, measurement, classification, and valuation issues in financial reporting within the framework of generally accepted accounting principles. Case studies and microcomputer analysis software will be integrated into the course.
137A-B. Managerial Accounting
(4-4) Watson, Maass
Prerequisites: Economics 1, 2, and 3A-B.
Not open for credit for students who have completed Economics 137.
A two-quarter series covering the theory and application of managerial accounting concepts. The course investigates the interaction between economic theory, financial accounting, and management decision making for planning and control.
138A-B. Income Taxation
(4-4) Schneider
Prerequisite: Economics 3A-B (for 138A): Economics 138A (for 138B).
An introduction to taxation. The basic theories, concepts, and general rules of federal income tax and their interrelationships with personal, business, and financial transactions. The course provides an understanding of tax policies and the interrelationship between tax and financial decisions.
139. Advanced Accounting
(4) Harmon
Prerequisites: Economics 136A-B.
Accounting for business combinations and preparation of consolidated financial statements, principles of fund accounting (governmental and non-profit entities), foreign currency translation and transactions, partnership formation, operation, and liquidation.
140A. Introduction to Econometrics
(4) Steigerwald
Prerequisite: Economics 100B or 104B; and, Economics 101 or 105; and PSTAT 120A.
Estimation and hypothesis testing in classical linear regression models as well as violations of each classical assumption. Discrete dependent variable models and systems of simultaneous equations are also covered.
140B. Introduction to Econometrics
(4) Deschenes
Prerequisite: Economics 140A.
Time-series econometrics including stationary ARMA models, estimation and hypothesis testing in the presence of unit roots, and financial models with conditional heteroskedasticity.
140C. Introduction to Econometrics
(4) Bedard
Prerequisites: Economics 140A-B.
Applied econometrics. An empirical project forms the basis of the course, designed to build on the principles taught in Economics 140A. Lectures concentrate on tools of applied analysis and may include, limited-dependent variable models, duration analysis, and systems estimation.
150A. Labor Economics
(4) Kuhn, Bedard, Deschenes
Prerequisite: Economics 100B or 104B.
Not open for credit to students who have completed Economics 150.
Analyzes the determinants of labor supply, labor demand, and equilibrium. Topics include the work-incentive effects of income-support programs and the effects of immigration on labor markets.
150B. Labor Economics
(4) Kuhn, Bedard, Deschenes
Prerequisite: Economics 100B or 104B.
Analyzes the structure of wages. Determinants of earnings studied include compensating differentials, human capital in the form of education and training, and immigrant assimilation.
152. Personnel Economics
(4) Kuhn
Prerequisite: Economics 100B or 104B.
Studies the allocation and pricing of labor within firms. Topics covered include employee selection, design of optimal piece rates, advantages and disadvantages of seniority-based pay, tournaments and promotions, and incentives in team production.
155. Economics of Insurance
(4) Marshall
Prerequisite: Economics 100B or 104B.
Topics may include behavior under uncertainty, markets in contingent claims, insurance law and institutions, insurance as financial management, valuation of insurance companies, regulation of insurance, disaster insurance, health insurance, moral hazard, adverse selection, public policy toward insurance.
160. Economics of Crime and Justice
(4) Phillips, Votey
Prerequisites: Economics 1 and 2; or Economics 109.
Examines social policy to minimize the losses to crime and the costs of crime control. Develops the economics of crime generation, law enforcement, prosecution, corrections, and punishment.
170. Health Economics
(4) Frech
Prerequisite: Economics 100B or 104B.
Application of economic and statistical principles to health and health services. Topics may include the determinants of health, demand for health care and health insurance, competition and monopoly in health care and insurance of health care, HMOs and managed care plans, public policy and international comparisons.
171. Introduction to Game Theory
(4) Charness
Prerequisite: Economics 134A or Mathematics 3C.
A rigorous study of strategic interaction. Topics include normal and extensive form games, existence and uniqueness of equilibrium, randomization, minimax, dynamics and equilibrium selection, auctions and bargaining, principle-agent incentives, voting, private contributions to public goods, oligopoly competition, market entry and burning money, wars of attrition.
180. International Trade
(4) Staff
Prerequisite: Economics 100B or 104B.
International trade theory and policies with examples from current issues and problems.
181. International Finance
(4) Staff
Prerequisite: Economics 101 or 105.
International money and capital markets and their impact on the domestic and world economies; international financial institutions and policies.
182. International Accounting and Financial Management
(4) Nisbet
Prerequisites: Economics 118 and 134A.
Accounting and financial management issues in the multinational enterprise including the global development of accounting and disclosure practice, international reporting and the management of global enterprise resources.
183. Economics of Entrepreneurship
(4) Staff
Prerequisite: Economics 1 and 2; or Economics 109.
Study of entrepreneurs as risktakers, innovators, combiners of resources, and managers, and of the legal and institutional environments that encourage (and discourage) such activity.
184. Decisions Under Uncertainty
(4) Marshall
Prerequisites: Economics 1 and 2; and, PSTAT 5E or 120A.
Analysis of decision-making by businesses, consumers and public agencies when conditions are uncertain. Topics include probability, utility, maximization, representation of decision problems in practical applications, updating probabilities in light of new data, and valuation of information.
185. Information Systems
(4) Owen
Prerequisites: Economics 1 or 109; and Economics 3A-B.
A study of the analysis, design, and implementation of accounting information systems.
189. Business Law and Ethics
(4) Schneider
Prerequisites: Economics 1 and 2.
Course provides a basic understanding of ethics and the legal framework within which U.S. businesses operate. Includes a broad overview of court procedures and in-depth coverage of selected topics including contracts, securities, and property rights.
191AA-ZZ. Special Topics in Economics
(4) Staff
Prerequisite: open to economics majors only.
May be repeated for credit to a maximum of 8 units. Up to 8 units may be applied to the major providing letter designations are different.
Lectures in special areas of interest in economics. Consult the department office regarding proposed course topics.
193. Internship in Economics
(1) Staff
Prerequisite: open to business economics, business economics with accounting, economics, and economics/mathematics majors only.
Course enables students to obtain credit for economics-related internship experience. A seven to eight page written report is required for credit.
194AA-ZZ. Group Studies
(1-4) Staff
Prerequisites: upper-division standing; and consent of instructor.
Students may repeat this course up to 12 units; however, only 4 units may count toward the major.
Intensive study and research on a topic in economics selected by the student with the guidance and approval of a faculty member.
196A-B. Senior Honors Seminar
(4-4) Staff
Prerequisite: admission to Department of Economics senior honors program (for 196A): Economics 196A (for 196B).
Students undertake independent research project(s) under direction of faculty member. The research results are presented as an honor paper at the end of the second term (196B).
199. Independent Studies in Economics
(1-5) Staff
Prerequisites: upper-division standing in the major; completion of two upper-division courses in economics; consent of department and instructor.
Students must have a minimum 3.0 grade-point average for the preceding three quarters and are limited to 5 units per quarter and 30 units total in all 98/99/198/199/199AA-ZZ courses combined. Only 12 units of Economics 199 may apply toward the major.
Coursework shall consist of academic research supervised by a faculty member. This course is not intended for internship credit.
199RA. Independent Research Assistance in Economics
(1-5) Staff
Prerequisites: upper-division standing in the major; completion of two upper-division courses in economics; consent of department and instructor.
Students must have a minimum 3.0 grade-point average for the preceding three quarters and are limited to 5 units per quarter and 30 units total in all 98/99/198/199/199AA-ZZ courses combined.
Coursework shall consist of faculty supervised research.
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204A. Macroeconomic Theory
(4) Bohn
Prerequisites: Economics 210A-B.
Introduction to modern macroeconomics. Study of economic growth and dynamic optimization. Representative agent, overlapping generations and monetary models will be covered.
204B. Macroeconomic Theory
(4) Staff
Prerequisite: Economics 204A.
Modern business cycle analysis, fiscal and monetary policy in a dynamic framework.
205A-B. Economic Decisions
(4-4) Comanor
Prerequisites: Economics 100A-B or 101; knowledge of differential calculus and economic theory.
This course presents the basic concepts of microeconomics by emphasizing their application to actual situations and their use in problem-solving. It covers the theory of choice in the first term and the theories of the firm and of markets in the second.
208. Topics in Macroeconomic Theory and Policy
(4) Staff
Prerequisites: Economics 100A-B and 101.
Keynesian, New-Classical, New-Keynesian theory of income determination, and policy prescriptions thereof. Additional topics include rational expectations and policy effectiveness, introduction to the intertemporal approach in macroeconomics, modern business cycle theory, and theory and evidence on economic growth.
210A. Theory of Consumption and Production
(4) Garratt, Kolstad, Marshall, Qin
Prerequisites: Mathematics 3A-B-C; and, Economics 104A-B or Economics 205A-B.
Preferences, revealed preference, utility, constrained optimization, demand, expenditure, indirect utility, cost, production, and profit.
210B. Game Theory
(4) Garratt, Qin
Prerequisites: Mathematics 3A-B-C; and, Economics 104A-B or Economics 205A-B.
Risk, expected utility, cooperative games, non-cooperative games, equilibrium, duopoly, oligopoly, bargaining and auctions.
210C. Markets and Incentives
(4) Kolstad, Marshall, Qin
Prerequisites: Economics 210A-B.
Partial equilibrium methods for the analysis of competitive markets, monopoly, externalities and public goods; applications of game theory to oligopoly; topics in asymmetric information, including adverse selection, signaling and screening.
210D. General Equilibrium and Welfare
(4) Marshall
Prerequisite: Economics 210C.
Existence of general, price-taking equilibrium, welfare theorems, examples, the core, equilibrium in risk markets, and intertemporal equilibrium.
211A. The Economic Foundations of Human Behavior
(4) Staff
Theoretical analysis of human capital accumulation, the allocation of time,household production, and the family as a decision making unit with respectto non-market behavior. Application of the preceding to such topics as fertility, marriage, criminality, health, education, discrimination.
214A. Economic Development
(4) Sengupta
A study of problems faced by the less developed countries. Elements of new growth theory. Endogenous growth and learning by doing. Topics considered include population growth, labor supply, capital accumulation, openness in trade, and technological change.
214B. Economic Development
(4) Staff
A study of the special problems faced by the less developed countries and the initial conditions and economic mechanisms that must be taken into account in raising living standards. Topics considered include population growth, labor supply, capital accumulation, the use of foreign resources, and effects of technological change.
216A-B. Organization of Industry
(4-4) Comanor, Frech, Krouse
Theoretical and empirical analyses of “imperfect” competition. Individual or firm optimization and market equilibrium are considered. Topics include oligopoly, monopolistic competition, information, determinants of market structure, complex pricing, vertical relations. Antitrust, regulatory, and government ownership policies will be examined.
229. Macroeconomics Theory and Policy
(4) Bohn
Prerequisites: Economics 204A and 204B.
Covers dynamic fiscal policy, including optimal taxation and government debt management, time consistency problems of fiscal and monetary policy, government budget deficits and their effects on the economy, and other advanced topics in macroeconomics.
230A-B. Public Finance
(4-4) Bergstrom, Shapiro, Sonstelie, Stuart
A. Public goods, taxation, and expenditure theory.
B. Topics vary: public debt management and fiscal policy; advanced topics in public expenditure and taxation theory; analysis of collective choice, political processes, and group decision-making.
230C. Public Finance
(4) Sonstelie
Prerequisites: Economics 230A-B.
Reading and discussion of selected topics and recent literature in public finance and public economics. Emphasis on the development of dissertation research topics. Student presentations required. Course outline and readings will vary from quarter to quarter.
234A. Introduction to Finance
(4) Leroy, Marshall, Mehra
Basic principles of financial management and an introduction to the subjects covered in subsequent courses in the Economics 234 sequence. Topics include financial planning, investment criteria, capital structure, and principles of asset valuation.
234B. Theory of Finance
(4) Leroy, Marshall, Mehra
Rigorous treatment of asset pricing theory. The economics of intertemporal choice and choice under uncertainty are developed and applied to financial markets. Theories of asset pricing are covered including the capital asset pricing model, arbitrage pricing theory, and option pricing theory.
235A. Finance
(4) LeRoy
Prerequisite: Economics 210A-B or 204A.
Individuals’ optimal consumption/portfolio choice under uncertainty and implied asset valuation. Rigorous treatment of the traditional linear asset pricing relations; mean-variance CAPM and APT, and the equilibrium valuation; consumption-based intertemporal asset pricing models.
235B. Finance
(4) LeRoy, Mehra
Prerequisites: Economics 210D; and, Economics 204A or 208; and Economics 235A.
Covers the integration of dynamic capital theory and the theory of finance, multiperiod general equilibrium pricing models and tests of those models.
237. Financial Management
(4) Watson
Prerequisite: consent of instructor; not open to UCSB Economics M.A. candidates.
An introduction to concepts from accounting, economics, and finance crucial to understanding the operation of business firms in a market economy. Topics include costs, profits, supply, demand, inflation, capital markets, present value, risk, debt, equity, balance sheets, and income statements.
240A. Introduction to Econometrics
(4) Phillips, Shapiro
Prerequisite: PSTAT 5E.
Review of probability and statistics with application to statistical decision theory, inference, interval estimation, and hypothesis testing. Introduction to the linear regression model and analysis of variance with applications to the estimation of applied economic models.
240B. Econometrics with an Emphasis on Cross Section Analysis
(4) Frech, Shapiro
Prerequisite: Economics 240A.
Extension to multiple regression analysis. Study of various problems, such as heteroskedasticity, serial correlation, and non-orthogonal errors, nested hypothesis testing. Emphasis on oral and written presentation of research projects.
240C. Econometrics with an Emphasis on Time Series and Forecasting
(4) Phillips
Prerequisite: Economics 140A or 240B or 241C.
Time series econometrics with an emphasis on business forecasting. Study of various methods of econometric forecasting including statistical decision theory, Box-Jenkins, adaptive methods, single and simultaneous structural equation models.
241A. Econometrics
(4) Steigerwald
Prerequisites: Mathematics 3A-B-C.
Elements of probability and statistics for econometrics. Probability density functions, moment-generating functions, central limit theorems, method of maximum likelihood.
241B. Econometrics
(4) Steigerwald
Prerequisite: Economics 241A.
The intuition and theory underpinning estimation of single and multiple equation regression models.
241C. Econometrics
(4) Staff
Prerequisite: Economics 241B.
Covers extension of the general linear model, simultaneous equations estimation, identification, dynamic model structure, and limited dependent variable estimation. Emphasis is given to both theoretical development and applications of the basic theory.
242. Advanced Game Theory
(4) Bergstrom, Garratt, Qin
Prerequisites: Economics 210B-C or Mathematics 118.
Not open for credit to students who have completed Economics 244B.
Cournot-Nash equilibrium, bargaining theory, value, and their modern variations including Bayesian-Nash equilibrium and evolutionary stable strategy. Nonequilibrium solution concepts (dominance and rationalizability). Applications to oligopoly, signaling, principal-agent problem, and organization or firms.
244. Mathematical Economics
(4) Staff
Prerequisites: Economics 201A-B-C-D, and 249; and Mathematics 118A-B-C.
Not open for credit to students who have completed Economics 244A.
Topics include bargaining, search, matching, mechanism design, voting, auctions, adaptive control, learning dynamics and recent development in game theory and mathematical economics.
245A. Econometric Theory
(4) Steigerwald
Prerequisite: Economics 241C.
The logic and structure of empirical work. In order: how to quantify theory; sources of data; methods of estimation; informative reporting of results.
245B. Econometric Theory
(4) Steigerwald
Prerequisite: Economics 245A.
Specification and estimation of dynamic regression models for conditional location and scale. Topics include trending variables (with attention paid to unit root models) and models of volatility for finance (with attention paid to continuous-time diffusion models).
245C. Econometric Theory
(4) Staff
Prerequisite: Economics 245A.
Specification and estimation of models for cross-section data. Topics include models of individual choice (with attention paid to nonparametric estimators) and models for panel data.
249. Dynamic Optimization
(4) Garratt
Prerequisite: Economics 210B or Mathematics 118.
Not open for credit to students who have completed Economics 201.
An introduction to the dynamic optimization techniques of the calculus of variations and optimal control theory. Focus on continuous time planning problems in a deterministic setting. Applications include natural resource extraction, energy production, human capital accumulation, and insurance.
250A. Labor Economics
(4) Bedard, Deschenes, Kuhn
Theory and application of labor supply and demand models. Applications include work incentives of social programs, employment effects of minimum wages, and effects of immigration.
250B. Wage Structure
(4) Bedard, Deschenes, Kuhn
Analysis of wage differentials by education, experience, union status, working conditions, and other factors.
250C. Current Research Topics in Labor Economics
(4) Bedard, Deschenes, Kuhn
Areas covered vary from year to year.
260A. Natural Resources
(4) Deacon, Kolstad
Capital theory and welfare economics applied to the primarily dynamic questions concerning the use of nonrenewable resources such as minerals, the use of renewable resources such as fisheries and forests, and the preservation of species and natural environments.
260B. Environmental Economics
(4) Kolstad
The primarily static theory of externalities and their correction. Covers basic theory of public bads and externalities, regulation theory related to environmental problems and applications, the valuation of environmental goods, transboundary pollution, and international trade and the environment.
273A. Managerial Accounting
(4) Nisbet, Watson
A course concerned with financial statements that are made available to creditors, stockholders, and other interested parties. The goal is to engender a knowledge of the measurement methods used by accountants and the ability to evaluate these methods.
280A. Theory of International Trade
(4) Staff
Topics include the sources of gains from trade and comparative advantage, trade under increasing returns to scale and imperfect competition, strategic trade policy, political economy of trade policy, and trade and environment issues.
280B. International Finance
(4) Staff
Prerequisite: Economics 204A.
Topics include current account dynamics, international risksharing, the transmission of business cycles, the determination of exchange rates, and sovereign debt.
292. Field Research in Economics
(1-12) Staff
Directed field research on a topic in economics.
293. Third Year Graduate Seminar
(4) Staff
Students present and discuss their original research papers.
294. Microeconomics Seminar
(4) Staff
Current topics in microeconomics.
297. Seminar on the Teaching of Economics.
(2) Staff
Prerequisite: graduate standing.
Seminar and laboratory work covering the planning, presenting, and evaluating instruction.
594AA-ZZ. Special Topics in Economics
(1-4) Staff
Prerequisites: graduate standing and consent of instructor.
Special seminar on research subjects of current interest.
595AA-ZZ. Group Studies in Economics
(4) Staff
Prerequisites: graduate standing and consent of
instructor.
Critical review of research in selected fields.
596. Directed Reading and Research
(2-4) Staff
Prerequisites: graduate standing and consent of
instructor.
Individual tutorial.
597. Individual Study for Master’s Comprehensive Examinations and Ph.D. Examinations
(1-12) Staff
Prerequisites: graduate standing and consent of
instructor.
No unit credit allowed toward advanced degree.
Instructor should be the student’s major professor or chair of the doctoral committee.
598. Master’s Thesis Research and Preparation
(1-12) Staff
Prerequisites: graduate standing and consent of
instructor.
No unit credit allowed toward advanced degree.
Only for research underlying the thesis, writing the thesis. Instructor should be the chair of the student’s thesis committee.
599. Dissertation Research and Preparation
(1-12) Staff
Prerequisites: graduate standing and consent of
instructor.
Only for research underlying the dissertation, writing the dissertation. Instructor should be the chair of the student’s doctoral committee.
