2007/2008 Graduate Catalog

| Courses | Program | Requirements

Department Chairperson: Warren L. Jones
Graduate Committee Chairperson: Warren L. Jones
Department Office: Stipes Hall 442
Department Telephone: 309/298-1153
Fax: 309/298-1020
Department E-mail:
Location of Program Offering: Macomb

Graduate Faculty

Associate Graduate Faculty

Program Description

The Department of Economics offers courses leading to the Master of Arts degree. Elective concentrations are available for students interested in the areas of teaching, business, commercial banking/financial institutions, government, community/economic development, international economics, agricultural economics, or energy and natural resources. Further information concerning the program and areas of specialization may be obtained from the department’s chairperson. The purpose of the M.A. program in economics is to provide students with a firm foundation for achievement of their goals; furthering their education at the D.A. or Ph.D. level; teaching at the secondary or junior college level; or working as professional economists in business, government, or other institutions.

Admission Requirements

For admission to the Master of Arts in Economics program, students should have
completed a minimum of 12 semester hours of undergraduate economics to include
intermediate micro- and macroeconomic theory and statistics. Students without the
recommended background will be required to complete, with a grade of C or better,
intermediate micro- and macroeconomic theory, and statistics, before they may enroll in
any 500-level economics courses. Students without an undergraduate course in
mathematical economics, or the equivalent, will be required to enroll in ECON 481G in
their first semester in the program. This course will be counted in the degree.

Degree Requirements

Core Courses: 9 s.h.

Select one of the following exit options: 21 s.h.



*To satisfy non-thesis research requirement, must be taken after at least one microeconomic and one macroeconomic core course has been completed.


The capstone courses (ECON 506 or 507) are fundamental in providing the knowledge and tools necessary in formulating economic hypotheses and analyzing final results. Students must complete 30 semester hours and may follow either a Thesis or a Non-Thesis Option. Consultation with the department’s graduate adviser concerning course selection is required to insure completion of all requirements. Students wishing to take a readings and/or internship course must receive approval from the economics department prior to registration.

Students in economics may select courses outside the Department of Economics which will assist them in achieving their career goals. A maximum of nine hours of related courses from other departments is allowed with permission of the graduate committee chairperson. The student may petition for an additional three hours of related course work outside the Department of Economics. All special permissions or petitions must be approved prior to registration. Transfer and extension credit will be accepted in accordance with current School of Graduate Studies policy.

While all economics graduate students must complete the required core courses (ECON
500 or 502, 503 or 504, 506 or 507), it is possible to elect courses that will enhance specific career objectives. Examples of elective concentrations are general business economics, commercial banking/financial institutions, pre-Ph.D., public service, international trade, agricultural economics, or energy and natural resources.

Post-Baccalaureate Certificate

The department offers a post-baccalaureate certificate in Community Development. For program details, please go to


Course Descriptions

420G Economic Development. (3) A study of the problems facing developing countries and their underlying causes. Problems such as population growth, urbanization, agricultural transformation, unemployment, education and training, and capital formation are addressed. Students are encouraged to examine solutions to these problems and evaluate the feasibility and practicality of such solutions. A multidisciplinary approach is used. Prerequisite: ECON 232.

425G Money Markets, Capital Markets, and Monetary Theory. (3) An institutional and theoretical study of money and capital markets in conjunction with
monetary policy. Prerequisite: ECON 231.

432G Public Finance. (3) A study of the role of government in promoting a system of effective markets. Includes analyses of the implications of various market distortions, the economic implications of a democratic system, the efficiency of a federal structure, and criteria for public investment decisions and government actions. Prerequisite: ECON 232.

435G Comparative Capitalist Systems. (3) A study of the process of transition from socialism to capitalism to include a study of the various forms of capitalism practiced by the major industrialized capitalist nations. The emphasis of the course is on actual transition processes and case studies. Prerequisite: ECON 232.

440G Labor Theory. (3) A critical analysis of the theoretical and empirical literature dealing with labor market processes; the determination of wages, human resource allocation, estimation of aggregate labor supply, labor mobility, the inflation-employment tradeoff, and the economics of labor market discrimination. Prerequisite: ECON 330 or 331, or permission of the instructor.

460G Urban and Regional Economic Analysis. (3) A study of the economics literature on urban and regional economic development theories and techniques. Particular attention is paid to economic policies to stimulate employment and foster income growth. Various measurement techniques for monitoring economic development are examined. Prerequisite: ECON 232.

470G International Trade. (3) A study of the theoretical and institutional aspects of international trade; effect of trade and factor movements on economic welfare; balance of payments; problems of international disequilibrium; process of balance of payments adjustment; barriers to trade; and the search for economic stability and growth through international cooperation. Prerequisite: ECON 232.

481G Mathematical Techniques. (3) Introduction to the mathematics most frequently used by economists—basic set theory; linear algebra; differentiation; comparative statistics; optimization; constrained optimization; linear programming. Prerequisites: ECON 231 and 232; one year of calculus or permission of the graduate adviser.

500 Macroeconomic Theory and Policy. (3) An examination of current macroeconomic theory. The emphasis is on understanding a generalized model of
the economy with multiple causal variables. Differences in interpretations of economic data and theoretical approaches are analyzed. Theory is applied to the current economic conditions. Present and proposed policies are discussed to illustrate the use of theory in solving economic problems.

501 Readings in Economics. (1–3, repeatable to 3) Graded S/U. Prerequisites: Graduate standing and permission of Department Graduate Committee

502 Macroeconomics and Growth Theory. (3) A study of aggregate theory of income, employment, and price levels using both comparative statics and dynamics, along with a discussion of business cycles and growth theories. Prerequisite: ECON 481G or permission of the graduate adviser.

503 Applied Price Theory. (3) Application of economic theory and methods to managerial decision making. Topics include demand, cost and production analysis and estimation; forecasting; pricing policy; risk and uncertainty problems; and capital budgeting.

504 Price Theory. (3) An analysis of consumer and firm behavior, market and multimarket equilibrium, and welfare economics. Prerequisite: ECON 481G or permission of the graduate adviser.

505 Economic Policy Analysis. (3) Examples of the application of analytical economic thinking to social issues. Policy issues are selected from the areas of stabilization, employment, inflation, growth, distribution, and regulation, among others.

506 Econometrics I. (3) Elements of the theory and practice of econometrics: including univariate and multivariate single equation models, statistical problems such as multicollinearity, special techniques and applications, and an introduction to simultaneous equations models. Students will complete a project involving hypothesis formulation, data collection, analysis using statistical software, and written presentation of results.

507 Econometrics II. (3) Estimation of single and simultaneous equation systems; estimation of demand, production, investment, and consumption functions; distributed lag models; dummy dependent variable models; multivariate analysis; economy wide models. Can be taken in lieu of ECON 506. Prerequisites: ECON 481G and permission of the graduate adviser.

508 Economic Theory for Decision Makers. (3) This course develops the macro- and microeconomic concepts most useful to decision makers. Topics covered include measuring aggregate economic activity, unemployment, inflation, business cycles, monetary policy, fiscal policy, international trade, derivation and determinants of market demand, theory of production, theory of cost, derivation and determinants of supply, and comparative performance of firms in alternate market structures. (This course cannot be taken by students enrolled in the Master of Arts in Economics program and does not satisfy entrance requirements for this program. It is designed for graduate students in areas other than economics.)

513 Economic Theory and Forecasting. (3) A study of the theoretical basis of economic forecasts of the U.S. economy. An understanding of the theory and an
evaluation of current forecasts will be used to develop individual forecasts for subsectors of the economy.

515 Economic Development. (3) The theory of economic development stressing the role of entrepreneurship, innovation, capital formation, saving, investment, labor, and foreign assistance. The effect of the changing social and value structures of developing
countries on the economic system is also examined.

525 Monetary Theory and Policy. (3) A study of the theoretical and empirical work in money demand, money supply multiplier, output effect of monetary policies, alternative techniques of monetary policy formulation and implementation, multi-asset financial markets, and inflation. Prerequisite: ECON 500 or ECON 502.

526 Global Markets. (3) An examination of the theory, instruments, and institutions of the international financial markets. Issues in foreign exchange, eurocurrency, and
international bond markets will be studied from historical, institutional, economic, and empirical points of view. Prerequisite: ECON 508 or equivalent, or permission of the instructor.

528 American Economic History. (3) A study of the development of the American economy from the colonial period to the present. The course explores both the successes and the failures of the United States economy. The emphasis is on how economic, political, and legal frameworks have interacted to create the American experience. Prerequisite: Any combination of six hours from ECON 231, 232, 328, HIST 105, 106, 300; or graduate standing in a business discipline, economics,
history, education (history or related specialty); or permission of the instructor.

535 Small Community Development. (3) This course emphasizes the practical knowledge required to deal with non-metropolitan development issues. The emphasis will vary with changes in the development environment. Topics will include economic trends, federal and state resources available to support economic development, and special problems and opportunities in small community development. Prerequisites: Graduate standing and permission of the instructor.

538 Economics for Managers. (3) The application of relevant theories and methods from microeconomics, macroeconomics, labor, international economics, and regulatory economics to managerial decision making in profit and nonprofit organizations. Topics include market structure, production and cost, foreign exchange and international trade, and public policy toward business. Master’s in economics students must receive
approval from the graduate adviser before registering. Prerequisites: ECON 508, or ECON 231 and ECON 232, or equivalent.

548 International Economic Relations. (3) An analysis of the fundamental economic principles, forces and governmental policies which determine the economic relations between countries under changing world conditions. Master of Arts in Economics students must receive approval from the graduate adviser before registering. Prerequisites: ECON 508, or ECON 231 and ECON 232, or equivalent.

550 Economic Topics and Curriculum Development. (1–3, repeatable to 3) A course designed to assist classroom teachers in the development of elementary and secondary curriculum incorporating economic concepts. This course will also
provide an opportunity for teachers with a basic understanding of economics to adapt the latest computer-based television and print matter curriculum materials to the needs of their classes and students. Check with the adviser to determine applicability of this course in your degree program. Graded S/U.

565 Natural Resource Economics. (3) A study of resource allocation in a timeless world, externalities, renewable and exhaustible resources, optimal use of exhaustible resources, price movements, uncertainty, aggregation, and measurement of intertemporal welfare. Case studies of minerals, water, land, and fishery resources will be used. Prerequisite: ECON 330 or 331, or permission of the instructor.

570 International Trade Theory. (3) A detailed examination of classical and modern theories of international trade. Application of modern techniques of economic analysis to international trade theory. A study of the theory of exchange rates and international money markets with an analysis of sources, causes, and the effects of capital flows on the world economy.

580 (cross listed with POLS 580, GEOG 580, RPTA 580, and CH 580) Skills in Community Development. (3) This course emphasizes the practical skills required to be an effective community developer, including conflict resolution, leadership, communication, and community capacity-building. The focus is on skillbuilding, as students are provided opportunities to practice new techniques. Topics will be modified as new technologies and other external factors impact the practice of community development. Graded S/U. Prerequisite: Graduate standing.

599 Internship. (1–12, repeatable to 12 hours) Only three hours per semester can be included in the degree plan. With prior approval of the graduate adviser, up to six hours can be included in the degree plan for internships covering the entire academic year. Graded S/U. Prerequisites: Graduate standing and permission of departmental graduate adviser.

600 Thesis Research. (3) The grade in ECON 600 will remain an incomplete until ECON 601, Thesis, is completed. Graded S/U.

601 Thesis. (3) Graded S/U.

Agricultural Economics cognate courses which may be taken as
part of the Economics Master of Arts Program

442G Marketing Grain and Livestock Products. (3) Basis hedging for grains, feeds, livestock, and meat. Three hours lecture. Prerequisite: AGEC 333.

443G Agricultural Finance. (3) Financing problems and opportunities in agriculture. Sources of finance, financing costs, analysis of investment opportunities, financial management, and estate planning. Three hours lecture. Prerequisite: AGRI 220 or permission of the instructor.

447G Commodity Markets and Futures Trading. (3) Futures trading institutions, technical analysis, multiple hedging, and speculation. Three hours lecture.

449G Advanced Farm Management. (3) Effective combination of resources in agribusiness planning and management. Emphasis placed on use of available agribusiness management software. Two hours lecture; two hours lab. Prerequisite: AGEC 349 or equivalent.

455G Advanced Agricultural Marketing. (3) Options on futures, applied research methods, current events. Prerequisites: AGEC 442 and 447, or permission of the

457G Market Profile®. (3) Use of the Chicago Board of Trade Market Profile® and Liquidity Data Bank® for hedging and speculation. Three hours lecture. Prerequisite: AGEC 445.