Economics - Winter 1998

This is the second quarter of the introductory sequence in economics. Most students will have taken Economics 1, Microeconomics, but this is not a prerequisite. Students can take Economics 2 as their first course in the subject, or even as their only course. The text is one of the leading books in the field, Baumol and Blinder, Macroeconomics. There are three lectures a week and one section meeting. Homework sets are assigned each weak, and they are returned and discussed in the section meetings. Attendance at the section meetings is mandatory. There is a midterm exam, a final exam and a term paper.

The course deals with the subjects of unemployment, inflation, the balance of trade and the determination of the gross domestic product. We will develop enough economic theory to understand these subjects at at least a beginning level. The theory stays at a fairly simple level, however, and students do not need mathematical skills, beyond basic high school algebra and an ability to interpret a two-dimensional graph. The theory is always intermixed with real-world examples, information and current events. I recommend strongly that students read a newspaper each day; we will be trying to interpret the day's news in the light of the course material.

Economics 100B is a course in intermediate macroeconomic theory and policy analysis. The main part of the course will be devoted to the development and application of the IS-LM framework and the theory of income determination. However, considerable attention will be devoted to international aspects, such as the trade deficit, international capital flows and the exchange rate, as well as domestic policy issues such as inflation and unemployment.

Students should have a familiarity with algebra (solving simultaneous equations). Knowledge of basic calculus (partial and total differentials) and introductory statistics (linear regression) will be helpful, but not required.

The textbook is Robert Hall and John Taylor, Macroeconomics, 4th edition (Norton, 1993). A small required reader will also be available for purchase at the Copy Center in the Communications Building.

More information regarding the instructor can be obtained at http://www2.ucsc.edu/people/chinn .

Examines the analytics of issues in technology and innovation, including cooperation in research and development (R&D), standardization and compatibility, patents and intellectual property rights, and strategic management, using economic models and firm case studies.

Course 10A and one of the following courses: 101, 115, 135A, or 136

Economics 140 is a course in international trade theory and policy analysis. Students should have a familiarity with algebra and the use of graphical analysis. A knowledge of calculus is useful, but not necessary.

The main part of the course will focus on the traditional theories of international trade (Ricardian, Hecksher-Ohlin) and commercial policies (tariffs and quotas). However, considerable attention will be devoted to the more recent literature on imperfect competition and strategic behavior in international trade. Topical issues, such as political influences (lobbying for protection), industrial policy and economic integration (NAFTA, European Union) will also be addressed.

The textbook is Paul Krugman and Maurice Obstfeld, "International Economics" (HarperCollins). A small required reader will also be available for purchase at the Copy Center in the Communications Building.

More information regarding the instructor can be obtained at http://www2.ucsc.edu/people/chinn

Revised 7/12/04.