Economics

401 Engineering 2
(831) 459-2743
http://economics.ucsc.edu

Program Description

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 three majors:

Economics B.A.

Business management economics B.A.

Global economics B.A.

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: Economics 1 (Introductory Microeconomics) and Economics 2 (Introductory Macroeconomics).

Students may petition for admission to the major by filling out the UCSC declaration of major form and by supplying evidence of their performance in the two pre-major courses.

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 at least 2.8 in courses 1 and 2 will be allowed to declare the major. To be considered for the major, students with a GPA below 2.8 in these courses must submit a GPA letter of appeal. Letters of appeal should describe any extenuating circumstances that might affect the student’s record. GPA appeals will be reviewed three times per quarter; the third, the fifth, and the seventh week of instruction with a four-day turnaround. Please come by the Economics Office, Engineering 2, Room 401, to receive guidelines on the appeal process.

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 unofficial 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 (withdraw) is given are not counted in the computation of the GPA. If courses 1 or 2 are repeated, the department will consider the grades from the first attempt in determining whether students qualify for admittance into the major.

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.

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 (Economics 100A (or 100M), 100B [or 100N], 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 by submitting a letter to the Economics Department. 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.

Core Requirements for all Economics Majors

Economics 1 and 2, 11A, 11B, 100A (or 100M), 100B (or 100N), 113, and Applied Mathematics and Statistics 5 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 Economics 1, 2, 11A, and 11B by the end of their sophomore year.

Mathematics and Statistics Content Requirement

Mathematics: Successful completion of Economics 11A and 11B, also offered as Applied Mathematics and Statistics 11A and 11B, (or equivalent) is required of all economics majors and is prerequisite to Economics 100A (or 100M), 100B (or 100N), and 113. (Economics 11B can be taken concurrently with Economics 100A (or 100M) and 100B (or 100N).) Therefore, students are advised to take Economics 11A and 11B or their equivalent as early as possible in their undergraduate career. Mathematics 11A-B and 22 or 23A, or 19A-B and 22 or 23A, are acceptable equivalents to Economics 11A and 11B. Students planning to do graduate work in economics or business should seriously consider more intensive mathematical training; consult an adviser.

Statistics: Applied Mathematics and Statistics 5 Statistics.

Comprehensive Requirement

The comprehensive requirement may be satisfied in one of the following ways: (1) by passing the final exams in all three upper-division core courses (Economics 100A or 100M, 100B or 100N, 113); (2) with consent of an instructor, by completion of a senior thesis.

Note that item 2 (above) has been quite rare in recent years. Most students who write a senior thesis have already met the comprehensive requirement. Also note that passing the final exam does not always guarantee passing a course.

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.
• Economics 191, 192, 193, 193F, 198, and 198F may not be used to meet minor requirements.

Economics 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 (or 100M), 100B (or 100N), and 113. Students may earn a maximum of 10 academic credits and complete up to two quarters in a field placement. A field study requires 12 hours per week spent working on internship duties. Time spent toward the academic requirements set by the faculty sponsor is not included in the 12 hours spent at the 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 401B Engineering 2; 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 on the student portal) 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. Global economics is offered in a combined major with Latin American and Latino studies. Requirements for these majors may be reviewed under their separate entries in this catalog.

Economics Program Description

Economics is the study of a vast range of human behavior and its social implications, ranging from how individuals and businesses make financial and consumption decisions to how society organizes production and makes allocation decisions over time and place.

Economics majors study a substantial core of economic theory and mathematical and statistical methods. Focusing on these two areas provides the foundation for graduate studies in economics. The required core courses may also 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

(or 100M)

100B Intermediate Macroeconomics

(or 100N)

113 Introduction to Econometrics

Applied Mathematics and Statistics 5 Statistics

and five additional upper-division economics courses, at least three of which must be selected from the following:

104 Is There Truth in Numbers: The Role of Statistics in Economics

105 Macroeconomic Theory

106 Evolutionary Thought in the Social Sciences

107 Economic Justice

108 Business and Society

109 Business Ethics

114 Advanced Quantitative Methods

120 Economic Development

121 Economic Growth

125 Economic History of the U.S.

126 Why Economies Succeed or Fail

128 Poverty and Public Policy

130 Money and Banking

137 Performing Arts in the Public and Private Economy

140 International Trade

141 International Finance

142 Advanced Topics in International Finance

143 Policy Issues in the International Economy

148 Latin American Economies

149 The Economies of East and Southeast Asia

150 Public Finance

152 Setting Domestic Priorities

153 Cost-Benefit Analysis

156 Health Care and Medical Economics

157 Economics of Aging

160A Industrial Organization

160B Government and Industry

165 Economics as an Experimental Science

166A Game Theory and Applications I

166B Game Theory and Applications II

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

185 The Value and Support of the Arts: Challenges and Opportunities in American Society

189 Political Economy of Capitalism

190 Senior Proseminar

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. Other electives are listed under the Business Management Economics program description.

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 related to the economics and global economics majors and the information systems management major.

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.

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 Economics 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 management 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

(or 100M)

100B Intermediate Macroeconomics

(or 100N)

113 Introduction to Econometrics

Applied Mathematics and Statistics 5 Statistics

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

12/L Computer Organization

80N Introduction to Networking and the Internet

Computer Science

10 Introduction to Computer Science

12A/L Introduction to Programming

5C Introduction to Programming in C (formerly CMPS 60 G/N)

5J Introduction to Programming Java (formerly CMPS 60 G/N)

5P Introduction to programming in Python (formerly CMPS 60 G/N)

80B Systems and Simulation

Information Systems Management

50 Business Information Systems

58 Systems Analysis and Design

Linguistics

80G Introduction to Unix

Economics

216 Applied Econometric Analysis I (with permission of instructor)

Note: CMPS 5J and CMPS 11 are equivalent to CMPS 12A/L and this is the recommended route for students with no prior programming experience.

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

118 Fraud Examination

119 Advanced Accounting

131 International Financial Markets

*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

161A Marketing

161B Marketing Research

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

194 Advanced Topics in Management

Students must choose the remaining two courses from the upper-division economics electives listed for the economics major (see page 181).

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 related 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)

11B Mathematical Methods for Economists (or equivalent)

100A Intermediate Microeconomics

(or 100M)

100B Intermediate Macroeconomics

(or 100N)

113 Introduction to Econometrics

Applied Mathematics and Statistics 5 Statistics

Students are strongly urged to complete courses 100A (or 100M), 100B (or 100N), 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. Please see courses listed under the Economics and Business Management majors as well. These may include approved courses offered by other departments.

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

120 Economic Development

140 International Trade

141 International Finance

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

Economics

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

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; substitute courses are welcomed when they are part of the student’s overseas program or from other UCSC departments, but 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 year:

200 Microeconomic Analysis

201 Applications in Microeconomics

202 Macroeconomic Analysis

216 Applied Econometric Analysis I

217 Applied Econometric Analysis II

233 Finance

In addition, first-year students take a two-unit workshop (course 294) in fall. Students normally enroll for 15 units. The minimum for full-time is 12 units.

In the fourth and fifth quarters, students must take at least four elective courses numbered 200 or higher. Students may choose from among the following courses: finance (courses 234, 235, 236, and 239), international economics (courses 249A, 249B), public economics (courses 250, 259A, 259B), accounting (courses 209A, 209B), or any economics Ph.D. course. Note that these courses are not offered each 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 no more than two upper-division economics courses toward the elective requirements.

Students may also satisfy elective requirements by taking relevant courses from another discipline. Students will need to file a departmental petition for review and approval of either their upper-division economics courses and/or courses from a related discipline. Please see the graduate adviser for the pre-approved list. Students should begin the approval process at least one quarter in advance.

In the final quarter, each candidate completes a major project in conjunction with course 291, Workshop in Applied Economics, and 10 units of 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, 11A, 11B, 100A (or 100M), 100B (or 100N), and 113. Business management economics majors must also complete 10A and 10B. In addition, students 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.

Courses and Program Requirements

*Economics 243 is not offered every year; it may be taken in the 2nd or 3rd year.

Course requirements are satisfied by a letter grade of B or better or a grade of S (satisfactory). A letter grade of C in a course is not satisfactory for meeting a course requirement for the Ph.D. program.

Preliminary Requirements

Preliminary examinations are given in two parts: one test in micro theory and one test in macro theory. Students are expected to pass both exams before the beginning of their second year. Preliminary exams are currently offered in June and September, although scheduling is subject to change.

Field examinations are given in two parts: one test in international trade and one test in international finance. These exams are roughly based on the courses Econ 240A, B, C and 241A, B, C, but they are not restricted to only material taught in a particular year at UCSC. The purpose of the exams is to test adequate knowledge of international economics as a qualification for the Ph.D. program. Students are expected to pass both exams by the beginning of their third year. Field exams are currently offered in June and September, although scheduling is subject to change.

An econometrics paper is due at the end of the first full week of fall quarter of the third year. In the winter and spring quarters of the second year and again in the fall quarter of the third year, each student must enroll in Economics 212 with the faculty adviser. The graduate handbook of the department details the evaluation procedure for the paper.

Students who do not pass both preliminary exams, both field exams and the econometrics paper requirement will not be allowed to continue in the Ph.D. program.

Qualifying Examination

Advancement to candidacy for the Ph.D. degree requires completion with satisfactory grades or better of the required coursework, preliminary examinations, field examinations, the econometrics paper and an oral examination. The oral examination is taken after all of the other requirements have been completed. A student cannot advance to candidacy before clearing any incomplete grades from their record.

Dissertation

The final requirement for the Ph.D. degree is acceptance of the student’s dissertation under the rules of the Academic Senate. A three-member dissertation advisory committee, headed by the student’s research advisor, evaluates the dissertation for the department. The dissertation advisory committee must be approved by both the Economics Ph.D. Committee and the Graduate Council. The committee may require a formal public defense of the dissertation.