Economics

417 Engineering 2
(831) 459-2743
http://econ.ucsc.edu

An understanding of economics is a vital component of a liberal arts education and a necessity for anyone interested in such areas as business, environmental policy, welfare reform, unemployment, international competitiveness and trade, or transformations in the global economy.

The programs offered by the UCSC Economics Department are designed to acquaint students with the broad range of issues studied by economists and with the tools they use. The department offers four majors:

Economics B.A.

Business management economics B.A.

Global economics B.A.

Information systems management B.S. (a major sponsored by the Economics and Computer Science Departments)

A minor in economics is also available, as well as the following combined majors:

Economics/environmental studies B.A.

Global economics/Latin American and Latino studies B.A.

Students majoring in other subjects will find that economics courses help them understand current affairs and satisfy their curiosity about the ways society allocates resources. The department provides topical courses in the 80 series for students who are interested in economics or business but do not plan to become majors.

The economics curriculum begins at the introductory level; no specific high school preparation is required. All economics majors study a substantial core of economic theory and mathematical and statistical methods, and then choose among a wide variety of upper-division electives. Economics majors may combine their upper-division elective choices in a variety of ways to achieve specialization in a number of possible areas, including environmental economics, public policy, political economy, international economics, economic development, and quantitative methods. Highly qualified seniors may take appropriate graduate courses and earn an M.S. as well as a B.A. degree in five years.

General Requirements

Admission into an Economics Major and Minor

The Economics Department administers three undergraduate majors: economics, business management economics and global economics. The admission requirements are the same for the three.

Students must take two courses prior to petitioning for entry to an economics major: course 1 (principles
of microeconomics) and course 2 (principles of macroeconomics).

Requests for entry into the major will be reviewed within two weeks of receipt. Equivalent courses may be taken at other universities or at community colleges. Transfer students may have these requests reviewed by the department prior to matriculation at UCSC.

All students with a combined grade point average (GPA) of 2.8 in courses 1 and 2 will be allowed to declare the major. Students with a GPA below 2.8 in these courses may be allowed to declare at the discretion of the department.

Students should take courses 1 and 2 for letter grades. In the case of courses taken on a Pass/No Pass basis, the department will use "shadow grades," assigned by the instructor but not reported to the Office of the Registrar, in its assessment of eligibility for the major.

Courses for which the grade of W is given are not counted in the computation of the GPA. If courses 1 or 2 are repeated, the department will evaluate the grades from the first attempt in determining whether students qualify for admittance into the major.

Students may petition for admission to the major by filling out the campus's Declaration of Major form and by supplying evidence of their performance in the two pre-major courses.

For purposes of advising, students who are interested in pursuing an economics major are encouraged to declare the pre-economics major with the understanding that this does not automatically provide entry to the economics major.

Appeal of Negative Decisions

Appeals of negative decisions must be submitted to the Economics Department in writing within 30 days of notification that entrance into the major was denied. Letters of appeal should describe any extenuating circumstances that might affect the student's record.

Core Requirements for all Economics Majors

Courses 1 and 2, 11A, 11B, 100A, 100B, and 113 are required for all economics majors and are prerequisites for most upper-division courses. Students are strongly urged to complete these courses as soon as possible. Students who are committed to the major early in their academic career or who are considering the combined B.A./M.S. program should plan to complete at least courses 1, 2, 11A, and 11B by the end of their sophomore year.

Mathematics Content Requirement

Successful completion of Economics 11A and 11B (or equivalent) is required of all economics majors and is prerequisite to courses 100A, 100B, and 113. (Course 11B can be taken concurrently with courses 100A and 100B.) Therefore, students are advised to take courses 11A and 11B or their equivalent as early as possible in their undergraduate career. Mathematics 11A-B and 22, or 19A-B and 22, are acceptable equivalents to Economics 11A and 11B. Students should not attempt to meet the requirement by combining courses from the economics and math sequences. Students must complete whichever sequence they begin. Students planning to do graduate work in economics or business should seriously consider more intensive mathematical training (consult adviser).

Comprehensive Requirement

The comprehensive requirement may be satisfied in one of the following ways: (1) by passing a comprehensive examination, administered by the Economics Department several times during the academic year; (2) in exceptional cases and with consent of an instructor, by completion of a senior thesis.

Minor Requirements

Students earn a minor in economics by completing all of the requirements for the major with the following differences:

• The number of additional upper-division courses is reduced from five to three.
  
  
• There is no comprehensive requirement.
  
  
• Courses 191, 192, 193, 193F, 198, and 198F may not be used to meet minor requirements. (As for the major, course 199 may be counted only once toward the upper-division minor requirements.)

Independent Study

Students are encouraged to petition for independent study on topics of special interest to them. Economics 199, Tutorial, may be used as only one of the upper-
division courses required for the major. The department encourages group tutorial study in which a small number of students join together in a seminar to pursue a common interest with faculty assistance. Such enterprises make economical use of faculty resources, and they also make it possible for students to learn from each other.

Field-Study Program

The Economics Department offers its majors the opportunity to integrate their academic knowledge with career-related work. The field-study program places students in internships under the supervision of a faculty sponsor and a professional at the workplace. Students can select from a wide variety of field placements such as accounting firms, community non-profits, government agencies, brokerage firms, marketing agencies, banks, and businesses in Santa Cruz and beyond. Students apply and prepare for field study a quarter in advance. Acceptance into the field-study program is determined by academic standing, class level, and successful completion of courses 100A, 100B, and 113. Students may earn a maximum of 10 academic credits and complete up to two quarters in a field placement.

Along with the training and supervision by a professional at the workplace, students receive guidance from a faculty sponsor who directs their academic project. Students earn credit through the completion of this project and the job supervisor's evaluation of performance. Economics field-study courses (193 and 198) do not satisfy any upper-division requirements for the major and are available as Pass/No Pass only.

Interested students should make an appointment or stop by the Economics Field Study Office at 217A, Social Sciences 1; or call (831) 459-2028; or e-mail econintern@ucsc.edu. Web address: http://econ.ucsc.edu.

Transfer Students

A student transferring to UCSC may fulfill some of the requirements for the major by completing equivalent courses, with a grade of C or better, at another recognized institution. Transfer students must present their Transfer Credit Summary (available from college offices) and course syllabi or descriptions to an Economics Department adviser. The department approves courses applicable for economics prerequisites and major requirements. All transfer students must complete the comprehensive requirement at UCSC. Economics and global economics majors must take at least three of their upper-division economics electives at UCSC. Business management economics majors must take at least four of their upper-division economics electives at UCSC, one of which must be 101, 133, or 135. Courses taken for credit elsewhere may not be repeated for credit here.

Combined Majors

The Economics Department offers a combined major in environmental studies/economics (go to the Environmental Studies Program Description for more information). Global economics is offered in a combined major with Latin American and Latino studies (go to the Latin American and Latino Studies Program Description for more information). Information systems management, a stand-alone major combining elements of business management economics and computer science, is administered by the Computer Science Department and leads to a bachelor of science degree (go to the Information Systems Management Program Description for more information). Requirements for these majors may be reviewed under their separate entries in this catalog.

Major Disqualification Policy

Students are expected to maintain good academic standing in the major. Only courses with a grade of P or a minimum letter grade of C or better will satisfy the major requirements. Students who fail any of the upper-division core courses (courses 100A, 100B, and 113) twice will be disqualified from the major. Students who are disqualified will be notified by the first day of instruction in the subsequent quarter following the disqualifying failure. The Office of the Registrar and the student's college will be notified of the disqualification.

Students may appeal their disqualification within the appeal period by submitting a letter to the economics undergraduate programs coordinator. This appeal must be filed no later than 15 days after the disqualification notification was mailed, or the 10th day of classes in the quarter of their disqualification, whichever is later.

Economics Program Description

Economics is the study of a vast range of human behavior and its social implications, ranging from how individuals make (or should make) personal financial and consumption decisions to how the business of organizing society's production and trade changes with time and place.

Economists are at the forefront of understanding and trying to grapple with some of the most important issues faced by the world. Economics majors study a substantial core of economic theory and mathematical and statistical methods. The required core courses may be combined with electives in a general economics major program especially suitable for students who plan either to enter law school or to go into more specialized programs emphasizing areas such as applied economics, environmental economics, public policy, political economy, international economics, third world issues and economic development, and quantitative methods.

Economics Major Requirements

Students who major in economics are required to take the following courses:

1 Introductory Microeconomics: Resource Allocation and Market Structure
2 Introductory Macroeconomics: Aggregate Economic Activity
11A Mathematical Methods for Economists (or equivalent)
11B Mathematical Methods for Economists (or equivalent)
100A Intermediate Microeconomics
100B Intermediate Macroeconomics
113 Introduction to Econometrics

104 Is There Truth in Numbers: The Role of Statistics in Economics
106 Evolutionary Thought in the Social Sciences
107 Economic Justice
114 Advanced Quantitative Methods
120 Economic Development
125 Economic History of the U.S.
126 Why Economies Succeed or Fail
128 Poverty and Public Policy
130 Money and Banking
131 International Financial Markets
137 Performing Arts in the Public and Private Economy
140 International Trade
141 International Finance
142 Advanced Topics in International Finance
148 Latin American Economies
149 The Economies of East and Southeast Asia
150 Public Finance
152 Setting Domestic Priorities
153 Cost-Benefit Analysis
160A Industrial Organization
165 Economics as an Experimental Science
169 Economic Analysis of the Law
170 Environmental Economics
171 Natural Resource Economics
175 Energy Economics
183 Women in the Economy
184 Labor Wars in Theory and Film
189 Political Economy of Capitalism

Courses 191, 192, 193, 193F, 198, and 198F may not be used to meet major requirements. Either course 195 or 199 may be used to fill one of the five upper-division major requirements.

Business Management Economics Program Description

The business management economics major provides students who are interested in careers in business or management with a foundation in economics and a selection of applied fields related to business management. Particular areas of strength of the program are accounting, finance, and technology management. This course of study prepares students for entrance into the business world or admission to graduate programs-either the master's program in applied economics and finance at UCSC or graduate programs in business and management at other universities.

The program provides a business and management education embedded within a broader economics and liberal arts context and is closely tied to the economics and global economics majors and the information systems management major (go to the Information Systems Management Program Description for more information).

The UCSC business management economics curriculum begins at the introductory level; no specific high school preparation is required. All majors study a substantial core of economic theory and mathematical and statistical methods, and they are then able to choose among a wide range of business and management electives.

This major has several important elements. First, it combines the strong analytic approach of economics with the technical aspects of management. Second, it recognizes that computing is intrinsic to business and is an essential skill for those who wish to enter this field. Students in this major gain knowledge about using computing as a tool of analysis for economic, statistical, and financial data. Third, the major offers field placements (arranged with the economics field-study program coordinator) which provide an excellent way to apply academic economics, business, and management to issues and problems in the real world; they provide marketable skills as well as important job contacts. And fourth, students gain written and verbal communication skills, which are vitally important in business.

In cooperation with the UC Education Abroad Program (EAP), opportunities are available for students to take some business courses (taught in English) in Europe, Mexico, and Hong Kong. Students should ask the Economics Department for additional information about these programs.

Students who are committed to the major early in their academic career or who are considering the combined B.A./M.S. program should plan to complete courses 1, 2, 10A, 10B, 11A, and 11B no later than the end of their sophomore year.

Business Management Economics

Major Requirements

Introductory and core requirements. Students who major in business managements economics are required to take the following courses:

1 Introductory Microeconomics: Resource Allocation and Market Structure
2 Introductory Macroeconomics: Aggregate Economic Activity
10A Economics of Accounting (or equivalent, see under General Requirements)
10B Economics of Accounting (or equivalent, see under General Requirements)
11A Mathematical Methods for Economists
(or equivalent)
11B Mathematical Methods for Economists
(or equivalent)
100A Intermediate Microeconomics
100B Intermediate Macroeconomics
113 Introduction to Econometrics

Computer literacy requirement. Students must complete a minimum of two courses from the following list (with department approval, a student may substitute other computing courses):

Computer Engineering 12C/L, Computer Organization
Computer Engineering 80N, Introduction to Networking and the Internet
Computer Science 10, Introduction to Computer Science
Computer Science 12A, Introduction to Programming
Computer Science 60G, Beginning Programming: Social Sciences and Humanities
Computer Science 60N, Beginning Programming: Natural Sciences
Computer Science 80B, Systems and Simulation
Information Systems Management 50, Business Information Systems
Information Systems Management 58, Systems Analysis and Design
Linguistics 80G, Nature and Language of Computers
Economics 216, Applied Econometric Analysis I (with permission of instructor)

Upper-division electives. Students are required to take six additional courses: four in business management and two other economics electives. Students must choose four courses from the following list; at least one of these four must be a course designated with an asterisk (*).

*101 Managerial Economics
102 Forecasting
110 Managerial Cost Accounting and Control
111A Intermediate Accounting I
111B Intermediate Accounting II
115 Introduction to Management Sciences
117 Tax Factors of Business and Investment
119 Advanced Accounting
*133 Security Markets and Financial Institutions
*135 Corporate Finance
136 Business Strategy
138 The Economics and Management of Technology and Innovation
139A Economics of Electronic Commerce
139B E-Commerce Strategy
161 Marketing
162 Legal Environment of Business
164 Economics and the Telecommunications Industry
180 Labor Economics
181 Economics of Real Estate
188 Management in the Global Economy

Students must choose the remaining two courses from the upper-division economics electives listed for the economics major (see the Economics Major Requirements listed in this section).

Courses 191, 192, 193, 193F, 198, and 198F may not be used to meet major requirements. Either course 195 or 199 may be used to fill one of the six upper-
division major requirements.

Field study. One quarter of field study is strongly recommended. Placements and credit for course 193 or 198 are arranged through the economics field-study coordinator. See above under Field-Study Program description.

Global Economics Program Description

Global economics is an interdisciplinary major designed to prepare students to participate in the global economy; the program aims to deepen the student's knowledge of economics within a culturally and linguistically diverse world. The major is particularly useful to students contemplating careers at home or overseas in international relations, in international business, or with international organizations. Hence the major requires overseas study, regional area study, and second-language proficiency in addition to the basic economics requirements.

The UCSC global economics curriculum begins at the introductory level; no specific high school preparation is required. The global economics major program is closely tied to the economics major program. See above under the general economics program description for more information.

Global Economics Major Requirements

Introductory and core requirements. Students who major in global economics are required to take the following courses:

1 Introductory Microeconomics: Resource Allocation and Market Structure
2 Introductory Macroeconomics: Aggregate Economic Activity
11A Mathematical Methods for Economists (or equivalent, see below)
11B Mathematical Methods for Economists (or equivalent, see below)
100A Intermediate Microeconomics
100B Intermediate Macroeconomics
113 Introduction to Econometrics

Students are strongly urged to complete courses 100A, 100B, and 113 prior to study abroad. In addition, majors must have language study, area study, and overseas study, as described below. Courses 191, 192, 193, and 198 may not be used to meet major requirements. Either course 195 or 199 may be used to fill one of the five upper-division major requirements.

Upper-division requirements. Five additional upper-division courses are required. These may include approved courses offered by other departments.

At least one of the five courses must be selected from the following three:

20 Economic Development
140 International Trade
141 International Finance

In addition, at least one course must be chosen from one of the following lists:

120 Economic Development
126 Why Economies Succeed or Fail: Lessons from Western and Japanese History
131 International Financial Markets
140 International Trade
141 International Finance
142 Advanced Topics in International Economics
148 Latin American Economies
149 The Economies of East and Southeast Asia
188 Management in the Global Economy

Latin American and Latino Studies

140 Rural Mexico in Crisis
165 Political Economy of Crisis and Transition in Latin America
168 Economic History of Latin America
169 Latin American Industrialization in a Global Perspective: Past, Present, Future

Politics

140B Comparative Post-Communist Politics
175 The New Europe
176 International Political Economy

Sociology

163 Global Corporations and National States
167 Development and Underdevelopment

The other three required upper-division electives are determined by the student's interests.

The global economics major has three additional elements:

1. Foreign Language Study: The global economics major requires a foreign language since students who plan to work in the larger world must have fluency in a language other than English. This language should be relevant to their regional area of interest. Students can meet this requirement by completing two years of university-level language courses or by demonstrating an equivalent level of competence through a recognized language test.
   
   
2. Area Study: The major requires students to take two additional courses selected from the offerings of departments other than economics in order to learn about the history, political economy, or culture of some other part of the world. These can be lower- or upper-division courses; the courses should focus on the area of the student's language study and overseas study. The Economics Department provides a list of approved courses, and substitute courses are welcomed when they are part of the student's overseas program or from other UCSC departments, but substitute courses must be approved by the adviser for the global economics major.
   
   
3. Study Abroad: All students are required to spend at least one term abroad in an approved course of study in their regional area of concentration; students may also choose a year-long program. Typically, a student will do this through the UC Education Abroad Program (EAP). Numerous overseas study sites are available through EAP. Students desiring to fulfill their required study abroad through EAP must apply directly to the EAP Office for the selected program and are subject to the admission requirements determined by UC EAP. In countries and at universities where EAP programs are not available, students may make their own arrangements for study with the permission of the director of the program. Students may use the time abroad to further their language study, to meet the area study course requirements, to meet some of the upper-division economics course requirements, or to take courses unrelated to the major. Students who are not accepted to an overseas program or who cannot meet the language or area course requirements are advised to complete the general economics major as an alternative.

Graduate Programs

Master's Program in Applied Economics and Finance

The master of science program in applied economics and finance is designed for students who wish to supplement their undergraduate work in economics with analytical graduate training that prepares them for careers in business, government, international and domestic banking, consulting firms, and nonprofit organizations. The program is unique in its focus on graduate-level economics training for practical application and its emphasis on communication skills. The curriculum stresses the application of micro and macro concepts, statistical techniques, finding and using data sources, working out substantial practical applications, developing writing and reporting skills, and presenting material orally before an audience. The program differs from typical M.B.A. programs by preparing students to meet the increasing technical demands of private and public sector employers through comprehensive course work in economic analysis.

Requirements for admission include an undergraduate degree in economics or successful completion of undergraduate courses in intermediate microeconomics, macroeconomics, and statistics and adequate preparation in mathematics. At least two quarters of calculus and one of linear algebra are strongly recommended. Students are also expected to have basic computer skills.

Students normally complete the master's program in two years. All students must complete 12 courses (60 credits) of graduate study, including the following core courses which are taken in the first three quarters:

200 Microeconomic Analysis
201 Applications in Microeconomics
202 Macroeconomic Analysis
216 Applied Econometric Analysis I
217 Applied Econometric Analysis II
233 Finance

In addition, a student enrolls in a 2-credit workshop (course 294A or 294B): first-year students take 294A in fall and 294B in winter; second-year students take 294B in winter. The number of credits considered a full load for a master's student at UCSC is 12. In quarters when they are not enrolled in 294A or 294B, students take another economics course or a course in another discipline. Courses that have already been approved include the following: Economics 110, 119, 138, 149, 169, 170, 183, Field Study, and Ph.D. courses. In the fourth and fifth quarters, students must take four elective courses; at least two must be numbered 200 or higher. Students may choose from among the following courses: finance (courses 234, 235, 236, and 239), international economics (courses 249A, 249B), and public economics (courses 259A, 259B). Note that not all of these courses will be offered every year; elective courses vary from year to year and are dependent on the staffing capabilities of the Economics Department.

Second year master's students may count one or two upper-division undergraduate economics courses toward the four elective requirements with the proviso that the instructor will require extra work from students who receive master's credit for such courses. Also note that some undergraduate courses have a graduate-level course that is taught concurrently.

Students may also satisfy elective requirements by taking relevant courses from another discipline. In both of these cases, students will need to file a departmental
petition for review and approval of either their upper-division undergraduate economics courses and/or courses from a related discipline. Students should begin the approval process at least a quarter in advance.

In the final quarter, each candidate completes a major project in conjunction with course 291, Workshop in Applied Economics, and course 297, Independent Study.

Students with graduate credit from other institutions may submit a written request for course substitution and/or credit to the graduate committee for review.

Applied Economics and Finance B.A./M.S. Dual-Degree Program
for Undergraduates

Students entering UCSC as undergraduates may complete a combined B.A./M.S. in applied economics and finance in five years. To qualify for this program, students must complete all of the core courses for their specific major (courses 1, 2, 10A, 10B for business management economics majors only, 11A, 11B, 100A, 100B, and 113) and are strongly advised to complete a minimum of three upper-division economics electives (business management economics majors must complete four) as well as the general education requirements before the end of their junior year. Students are also advised to take a course in linear algebra (Mathematics 21). Students majoring in business management economics or global economics should refer to those sections for the respective dual-degree requirements.

Students must also take the Graduate Record Examination General Test during the fall quarter of their junior year. Advance planning for the program is essential, and interested students should consult with a faculty adviser well in advance of applying to the dual-degree program.

A student in the program begins the first-year M.S. courses in the senior year while continuing to maintain undergraduate status. In the fifth year, the student is officially enrolled as a graduate student and completes the remaining graduate course work, culminating in the M.S. degree.

Admission to the dual-degree program is by formal application directly to the Department of Economics; the application deadline is February 15 of the junior year. Undergraduates who plan to apply to quantitative-oriented Ph.D. programs at other institutions may take some of the first-year M.S. classes with the permission of the instructor.

Ph.D. Program in International Economics

The Ph.D. program in international economics provides students with training in modern microeconomics, macroeconomics, and econometrics, combined with specialized training in the fields of international finance and international trade. Students learn to bring an international perspective to all areas of economics and to conduct research on current and emerging international economic issues. The program offers more intensive course work in international trade and finance, as well as greater faculty depth in various aspects of international economics, than do traditional Ph.D. programs in economics that offer international economics as a single subfield. The large number of internationally recognized faculty in the department who are actively engaged in research in international economics provides a unique focus to the program and the department. While the core emphasis is on international trade and finance, the program also offers courses in economic development and in special topics, and students in the program have conducted research on a wide variety of topics in other areas; examples include monetary economics, experimental economics, environmental economics, and economic growth and development. This makes graduates of the program particularly well prepared for academic careers and for research careers in both domestic and international policy institutions.

Degree Requirements

Students are normally expected to complete the Ph.D. program within five years, although a full-time student with normal preparation should be able to finish in four years. Students are required to pass four written examinations: two on microeconomic and macroeconomic theory at the end of the first year, and two covering international trade and international finance at the end of the second year. Also required are two courses in econometrics during the first year and a second-year econometrics project demonstrating independent, original research and a command of modern techniques in empirical economic research. Also required is a course in the history of the international economy.

Early in the third year, students, working with a faculty adviser, prepare a dissertation proposal. An oral examination is required for advancement to candidacy for the Ph.D. degree. This is taken after the dissertation prospectus has been written and covers the student's area of research specialization. The degree is awared upon successful completion of the dissertation.