New York University Faculty of Arts and Science College of Arts and Science Graduate School of Arts and Science


(Last Updated: 04/09/08 )

Economics Course Offerings

Note: The courses and prerequisites listed on this page may differ from the information in the CAS Bulletin. The information on this page is more current.

Students should speak with an advisor in the economics department to help them plan their major. Advisors are located at 19 West 4th Street, rooms 836 and 837.

In the list of courses below, some courses are designated either “P” or “T” (or both). “P” alone represents courses to be taken only by students in the policy concentration; “T” alone represents courses to be taken only by students in the theory concentration; and “P, T” represents courses that may be taken by students in either concentration.
Economics courses for majors fall into several categories: first- and second-year core courses; elective courses at the 200 and 300 level; and special honors courses. The 200-level electives require principles as a prerequisite; 300-level electives require statistics and the intermediate core courses as prerequisites.

FIRST-YEAR CORE COURSES

Economic Principles I (P)
V31.0001  Prerequisite: V63.0009 or equivalent. Offered every semester. 4 points.
Focuses on the economy as a whole (the “macroeconomy”). Begins with the meaning and measurement of important macroeconomic data (on unemployment, inflation, and production), then turns to the behavior of the overall economy. Topics include long-run economic growth and the standard of living; the causes and consequences of economic booms and recessions; the banking system and the Federal Reserve; the stock and bond markets; and the role of government policy.

Economic Principles II (P)
V31.0002  Prerequisite: V63.0009 or equivalent. Offered every semester. 4 points.
Focuses on individual economic decision-makers—households, business firms, and government agencies—and how they are linked together. The emphasis is on decision making by households and firms and how these decisions shape our economic life. Explores the different environments in which businesses sell their products, hire workers, and raise funds to expand their operations; the economic effects of trade between nations; and the effects of various government policies, such as minimum-wage legislation, rent controls, antitrust laws, and more.

Introduction to Economic Analysis (T)
V31.0005  Identical to C31.0005. Corequisite: V63.0122. Open only to freshmen and sophomores. Offered in the fall and summer. 4 points.
Introduces some of the important tools economists use to solve problems, provides examples of how they are used, and prepares students for subsequent course work in the theory concentration. Topics include game theory, decision making by households and firms, competitive markets, long-run economic growth, disequilibrium, and short-run economic fluctuations.

Mathematics for Economists (T)
V31.0006  Identical to C31.0006. Prerequisite: V31.0005. Corequisite: V63.0123. Open only to freshmen and sophomores. Offered in the spring and summer. 4 points.
Specifically designed to provide the appropriate mathematical tools for study in the theory concentration. Examples and motivation are drawn from important topics in economics. Topics covered include elementary set theory and the abstract notion of a function; Cartesian products; convex sets and concave functions; differential calculus and partial derivatives; integration and the fundamental theorem of calculus; first- and second-order conditions for a maximum; implicit functions; and constrained optimization.

Statistics (P)
V31.0018  Prerequisite: V63.0121. Restriction: not open to any student who has taken V31.0020. Offered every semester. 6 points.
Introduction to statistics. Topics: descriptive statistics; introduction to probability; sampling; statistical inferences concerning means, standard deviations, and proportions; analysis of variance; linear regressions; and correlation. Laboratory periods cover sample problems drawn primarily from economics. Meets three times a week, plus a lab session.

Regression and Forecasting Models (P)
V31.0019  Identical to C22.0003. Prerequisite: a 4-point statistics course. Offered by the Stern School of Business, this course is open only to students who declare a major in economics after having taken a course in statistics for 4 points outside the department and who will not have had a thorough grounding in multiple regression. AP credit in statistics is not acceptable for the economics major. If the outside course is acceptable to the Department of Economics for the material leading up to regression, the student must complete this course with a passing grade to satisfy the statistics requirement in the department. Offered in the spring. 2 points.
An introduction to the linear regression model, inference in regression analysis, multiple regression analysis, and an introduction to time series analysis.

Analytical Statistics (T)
V31.0020  Identical to C31.0020. Prerequisite: V63.0122. Corequisites: V31.0006 and V63.0123. Restriction: not open to any student who has taken V31.0018. Offered in the spring. 4 points.
Introduction to statistical reasoning. Topics covered include descriptive statistics, calculation of moments, probability theory, an introduction to distribution theory, and an introduction to inference. Lab sessions enable the student to run a wide variety of computer experiments and to simulate all distributions that are discussed, as well as to experiment with a wide variety of statistical procedures.

SECOND-YEAR CORE COURSES

Intermediate Microeconomics (P)
V31.0010  Identical to C31.0010. Prerequisites: V31.0002 and V63.0121 (Calculus I). Offered every semester. 4 points.
Examines the manner in which producers, consumers, and resource owners acting through the market determine the prices and output of goods, the allocation of productive resources, and the functional distribution of incomes. The price system is seen as a network of interrelated decisions, with the market process serving to communicate information to decision makers.

Microeconomics (T)
V31.0011  Identical to C31.0011. Prerequisites: V31.0005, V31.0006, V31.0020, and V63.0123. Offered in the fall. 4 points.
Rigorous examination of consumer choice, profit-maximizing behavior on the part of firms, and equilibrium in product markets. Topics include choice under uncertainty, strategic interactions between firms in noncompetitive environments, intertemporal decision making, and investment in public goods.

Intermediate Macroeconomics: Business Cycles and Stabilization Policy (P)
V31.0012  Identical to C31.0012. Prerequisites: V31.0001, V31.0002, and V63.0121. Offered every semester. 4 points.
Study of aggregate economic analysis with special attention paid to the determination of the level of income, employment, and inflation. Critically examines both the theories and the policies associated with them.

Macroeconomics (T)
V31.0013  Identical to C31.0013. Prerequisites: V31.0005, V31.0006, V31.0020, and V63.0123. Offered in the spring. 4 points.
Study of aggregate economic analysis, with attention paid to the determination of the level of income, employment, and inflation. Critically examines both the theories and the policies associated with them. This course involves more formal analysis than that used in V31.0012.

International Economics (P)
V31.0238  Prerequisites: V31.0001 and V31.0002. Offered every semester. 4 points.
Focuses on international trade in goods, services, and capital. It serves as an introduction to international economic issues and as preparation for the department’s more advanced course in V31.0324. The issues discussed include gains from trade and their distribution; analysis of protectionism; strategic trade barriers; the trade deficit; exchange rate determination; and government intervention in foreign exchange markets.

Introduction to Econometrics (T)
V31.0266  Identical to C31.0266. Prerequisites: V31.0006 and V31.0020. Offered in the fall. 4 points.
Application of statistics and economic theory to problems of formulating and estimating models of economic behavior. Matrix algebra is developed as the main tool of analysis in regression. Acquaints students with basic estimation theory and techniques in the regression framework and covers extensions such as specification error tests, heteroskedasticity, errors in variables, and simple time series models. An introduction to simultaneous equation modes and the concept of identification is provided.

ELECTIVE COURSES: 200 LEVEL

Economic History of the United States (P, T)
V31.0205  Identical to C31.0205. Prerequisites: V31.0001 and V31.0002, or V31.0005. Offered in the spring and summer. 4 points.
Analytic survey of the structure of the U.S. economy. National income and its distribution; population and land; capital accumulation and development of financial institutions; labor and labor unions; technological change; the market, both domestic and foreign; and the economic effects of government policy.

History of Economic Thought (P, T)
V31.0206  Formerly V31.0106. Prerequisite: V31.0001. Restriction: Not open to any student who has taken V31.0106. Offered every fall and summer. 4 points.
Begins with a short introduction to mercantilism, then moves to the classical school, examining the contributions of its main figures (Smith, Malthus, Ricardo, Mill, and others). Ends with Marx’s reaction to classical doctrines and the Marginalist Revolution of the late 19th century, which set the foundation of modern neoclassical economics. Conceptually, covers a variety of topics but focuses on two main entities: first, the normative aspects of the debate on the factors determining the value of commodities and the related issue of the principles that ought to govern the allocation of wealth; and second, various theories of economic growth and historical change, including predictions made on the future of capitalism.

Ethics and Economics (P, T)
V31.0207  Identical to C31.0207. Prerequisite: V31.0002 or V31.0005. Offered in the spring. 4 points.
Study of the interface between ethical and economic theories. Specific topics covered include a brief overview of various ethical ideas, an analysis of the ethical presuppositions of modern economic theory (especially welfare economics), utilitarian ethics, the moral status of free exchange, the ethical implications of imperfect knowledge between bargaining parties, cost-benefit analysis and human rights, the economic content of the “general welfare,” and laissez-faire.

Urban Economics (P, T)
V31.0227  Identical to C31.0227, V18.0751. Prerequisite: V31.0002 or V31.0005. Offered in the fall. 4 points.
The city as an economic organization. Urbanization trends, functional specialization, and the nature of growth within the city; organization of economic activity within the city and its outlying areas, the organization of the labor market, and problems of urban poverty; the urban public economy; housing and land-use problems; transportation problems; and special problems within the public sector.

Money and Banking (P, T)
V31.0231  Prerequisite: V31.0001 or V31.0005. Offered every semester. 4 points.
Money supply; banking as an industry; banks as suppliers of money; the Federal Reserve System and monetary control; monetary theory; and contemporary monetary policy issues.

Poverty and Income Distribution (P, T)
V31.0233  Identical to C31.0233. Prerequisite: V31.0002 or V31.0005. Offered in the fall. 4 points.
Defines poverty and welfare. Analyzes who the poor are, why some people are rich and others poor, equality of opportunity, income and status, inequality, trends in the degree of inequality, government’s role in income distribution, and international comparisons of inequality.

Gender and Choices (P, T)
V31.0252  Identical to C31.0252, V18.0719. Prerequisites: V31.0001 and V31.0002, or V31.0005. Offered in the spring. 4 points.
Examines important economic influences on decisions women make concerning labor force participation and family. Theory of labor market behavior and discrimination, as well as public policy options.

Honors Seminar: Politics and Finance (P)
V31.0296 Identical to V53.0396. Prerequisites: V31.0002, V53.0300, 3.5 GPA, and permission of the Department of Politics. Offered every year. 4 points.
Examines how legislation and regulation influences the structure of financial markets and how players in these markets intervene in the political process to create or modify legislative and regulatory outcomes. Particular emphasis is placed on the United States. International comparisons are also presented. The class assumes that students have had exposure to microeconomics and finance but not to political theory. A brief introduction to political theory is provided. The approach is similar to that used in microeconomics, except that transactions are made through voting institutions rather than through economic exchange.

ELECTIVE COURSES: 300 LEVEL
Note: For all courses listed below, V31.0018 is a prerequisite for policy electives, and V31.0266 is a prerequisite for theory electives.

Strategic Decision Theory (T)
V31.0310  Identical to C31.0310. Prerequisite: V31.0011. Offered in the spring. 4 points.
Introduction to noncooperative game theory. Focuses on a rigorous development of the basic theory with economic applications such as competition among oligopolists, how standards are set, auction theory, and bargaining. The formal topics include games in strategic form, Bayesian games, and games in extensive form.

Industrial Organization (P)
V31.0316  Identical to C31.0316. Prerequisite: V31.0010. Offered in the spring. 4 points.
Analysis of the structure, conduct, and performance of firms and industries. Involves the development of a theoretical basis for evaluating performance. Analysis of competition as a state-of-affairs versus competition as a process. The effects of advertising, economic concentration, and innovation upon prices and production. Overall survey of contemporary antitrust law and economics.

Market Structure and Performance (T)
V31.0317  Identical to C31.0317. Prerequisite: V31.0011. Offered every other year. 4 points.
Designed to familiarize students with a modern approach to industrial organization economics. The modern approach relies extensively on the use of game-theoretic tools to model strategic market behavior and the use of econometric methods for testing hypotheses regarding firm conduct and market performance. In particular, the course analyzes profit-maximizing business strategies of firms with market power as well as strategic interactions among firms in various types of imperfectly competitive markets. The course addresses both static modes of competition as well as dynamic competition in research and development and product design. The course also examines the scope of effective public policies designed to improve market performance. Throughout the course, mathematical-based models are used to develop the relevant concepts and test the pertinent theories of firm behavior.

Forecasting in Macroeconomic and Finance Models (T)
V31.0320  Prerequisites: V31.0011, V31.0013, and V31.0266. Offered every year. 4 points.
Presents the main approaches to forecasting in macroeconomic and finance models.
After discussing the rationale for the emergence of the Rational Expectations Hypothesis
(REH) as the dominant approach, the course reexamines its theoretical foundations,
empirical performance, and policy implications. The course also discusses two
alternative approaches: the behavioral-finance models, and an approach to forecasting behavior
that places “imperfect knowledge” at the center of the analysis. The main points are illustrated
with examples of the analysis of consequences of monetary policy, and modeling of movements
of the exchange rate and risk premia.

Economic Development (P, T)
V31.0323  Identical to C31.0323. Prerequisites: V31.0010, V31.0012, and V31.0238, or V31.0011 and V31.0013. Offered every semester. 4 points.
Studies the problem of economic underdevelopment, with special reference to the countries of Asia, Latin America, and Africa. The building blocks of economic theory are used to understand the historical experiences of these countries. Macroeconomic topics covered include economic growth, income distribution, and poverty, with particular emphasis on the concept of underdevelopment as a circular, self-reinforcing trap. Microeconomic topics include the study of particular markets that are especially relevant to developing countries: those for land, labor, and credit. Notions of market fragmentation, limited information, and incentive problems receive emphasis. Ends with international issues: trading patterns, capital flows, and global financial crises are studied from the viewpoint of developing countries.

Topics in the Global Economy (P)
V31.0324  Identical to C31.0324. Prerequisites: V31.0012 and V31.0238. Offered every semester. 4 points.
Covers special topics in the context of a global economy, including fiscal and monetary policy under alternative exchange rate regimes; international transmission mechanisms; barriers to capital mobility; international policy coordination; optimum currency areas, customs unions and free trade areas; multilateral trade; trade liberalization policies; and the role of the World Bank and IMF.

Economics of Energy and the Environment (P, T)
V31.0326  Identical to C31.0326. Prerequisite: V31.0010 or V31.0011. Offered in the fall. 4 points.
Economic analysis of major policy issues in energy and the environment, both domestic and international. Emphasis on market solutions to various problems and market limitations in the allocation of environmental resources. Energy issues focus on OPEC and world oil markets, with attention to reducing oil import vulnerability; taxation and regulation of production and consumption; conservation of natural resources; and the transition to alternative energy sources. Environmental issues include policies to reduce pollution. Substantial attention is paid to global warming caused by consumption of fossil fuels.

International Trade (T)
V31.0335  Identical to C31.0335. Prerequisite: V31.0011. May not be taken for credit in addition to V31.0238. Offered every other year. 4 points.
Examines theories of international trade, as well as related empirical evidence. Topics include the relationship between trade and economic growth, the theory of customs unions, international factor movements, trade between unequal partners, and trade under imperfect competition.

International Finance Theory (T)
V31.0336  Identical to C31.0336. Prerequisite: V31.0013. Offered every other year. 4 points.
Financial and macroeconomic issues in international economics, the balance of payments, gold and other assets in international portfolios, exchange rate determination, problems of simultaneous achievement of internal and external policy goals, and interdependence of countries’ macroeconomic policies.

Ownership and Corporate Control in Advanced and Transition Economies (P, T)
V31.0340  Identical to C31.0340. Prerequisite: V31.0010 or V31.0011. Offered in the fall. 4 points.
Discusses the conceptual foundations and empirical evidence concerning the effects of private ownership on corporate performance. The corporate control mechanisms in the United States, Germany, Japan, and the emerging market economies of Eastern Europe and the former Soviet Union are reviewed. Particular attention is paid to the role of capital markets (takeovers and other shareholder control devices), banks and other financial institutions, and various corporate institutions (such as boards of directors and meetings of shareholders) in facilitating or hindering corporate control and the efficient allocation of resources.

Political Economy (T)
V31.0345  Identical to C31.0345. Prerequisite: V31.0011. Offered in the spring. 4 points.
Introduces the emerging field of formal political economy. The variety of ways in which economists and political scientists think about political science and the interplay of political science and economics are analyzed. The first part of the course focuses on the formal modeling of political behavior and political institutions; the theory of social choice (how groups of rational individuals make decisions) and collective action (how groups of rational individuals take action) are analyzed. The second part of the course discusses the connection between politics and economics and investigates the effect of political variables on the determination of economic outcomes. Some questions that are answered: How can special groups of individuals enhance their well-being by political action? What is lobbying? What is the effect of contributions on political outcomes?

Labor Economics (P, T)
V31.0351  Identical to C31.0351. Prerequisite: V31.0010 or V31.0011. Offered in the fall and spring. 4 points.
Analyzes the functioning of the labor market in both theoretical and statistical terms. Examines the determinants of wage and employment levels in perfect and imperfect labor markets, including the concept of education and training as human capital. Models of labor market dynamics are also examined, including those of job search and matching. The role of public policy in the functioning of labor markets is highlighted throughout.

Public Economics (P, T)
V31.0353  Identical to C31.0353. Prerequisite: V31.0010 or V31.0011. Offered in the fall and spring. 4 points.
In alternate years, stresses policy implications and the development of the theory. Analysis of government economic policies and behavior. Normative and positive economics; the fundamental welfare theorems. What goods should the government provide (public goods)? When should the government tax private behavior (externalities)? Income redistribution and the welfare program. Who pays the tax (tax incidence)? The role of debt policy. On what should taxes be levied (optimal taxation)?

Law, Economics, and Society (P)
V31.0355  Formerly Economics of the Law (V31.0255). Restriction: Not open to any student who has taken V31.0255. Prerequisite: V31.0010. Offered every year. 4 points.
Deals with classic topics in law and economics, as well as law and society. Topics include tort law, criminal law and racial profiling, the efficient allocation of property rights, and the possibility of order without law. The methodological approach is a game-theoretical one. Provides a fair amount of the required technical background; concepts introduced include dominant strategies, Nash Equilibrium, dynamic games, and backward induction.

Experimental Economics (P, T)
V31.0360  Identical to C31.0360. Prerequisite: V31.0010 or V31.0011. Offered in the spring. 4 points.
Experimental economics is predicated on the belief that economics, like other sciences, can be a laboratory science where economic theories are tested, rejected, and revised. This course reviews the methodology of doing such laboratory experiments and investigates the use of experiments in a wide variety of fields. These include competitive markets, auctions, public goods theory, labor economics, game theory, and individual choice theory. The course functions as a research seminar in which students present their work as it progresses during the semester. Students also get exposure to the experimental laboratory in the Department of Economics and the research performed there.

Elements of Financial Economics (T)
V31.0363  Identical to C31.0363. Prerequisites: V31.0011 and V63.0123. Restriction: open to students from the Stern School of Business only if C15.0043 has not been taken. Offered every year. 4 points.
Provides an understanding of the operation and economic role of contingent markets in sharing risk in a sophisticated financial system. Develops tools for decision making under uncertainty, the solution of portfolio choice problems, and the analysis of efficient markets. Includes applications to forwards, futures, and options.

Advanced Micro Theory (T)
V31.0365  Identical to C31.0365. Prerequisite: V31.0011. Offered every other year. 4 points.
Designed to introduce students to some of the main model-building techniques that have been developed by microeconomists. Intended for advanced undergraduates who have taken the necessary preparatory courses in economics and mathematics. Three basic topics are covered. The first topic is the static theory of consumer behavior both in a certain world and in an uncertain world. The second topic is the theory of general equilibrium. The third topic is the theory of dynamic optimization. In addition to the coverage of the economics, the advanced mathematical techniques that are needed to understand the material are reviewed.

Financial Economics (P)
V31.0368  Prerequisites: V31.0010 or V31.0012. Restriction: Not open to students from the Stern School of Business. Offered every year. 4 points.
This course provides theoretical and practical tools for understanding the operation of financial markets, the meaning of risk, and its relation to financial return. The course also develops concepts of systematic versus idiosyncratic risk, market efficiency, the equilibrium determination of interest rates both in the over-night, inter-bank lending market, and in the market for corporate debt, term and default premia in the bond market, and average excess stock returns in the equity market.

Topics in Economic Theory (T)
V31.0375  Identical to C31.0375. Prerequisites: V31.0011 and V31.0013. May not be taken for credit in addition to V31.0370. Offered every year. 4 points.
Explores issues in economic theory using the tools learned in macroeconomics and microeconomics. Focuses on a particular issue each term.

Topics in Econometrics (P)
V31.0380  Identical to C31.0380. Prerequisites: V31.0010, V31.0012, and V31.0018. Offered in the fall. 4 points.
Examines a number of important areas of econometrics. The topics covered include identification and estimation of simultaneous equations models; model specification and testing; estimation of discrete choice models; and the analysis of duration models. In addition to covering the relevant theoretical issues, the course includes the application of these methods to economic data.

HONORS AND INDEPENDENT STUDY

Honors Tutorial (P, T)
V31.0410  Identical to C31.0410. Prerequisites: V31.0010, V31.0012, V31.0018, and V31.0380, or V31.0011, V31.0013, and V31.0266. Open only to students in the honors track. Offered in the fall. 4 points.
The objective of the course is to train students to write on economic topics and perform economic analysis efficiently and quickly, as well as to develop rhetorical skills. Once a week, two students each present a paper on an assigned topic that has been distributed previously to the other students. The students not presenting that week critique the paper and the presentation, as will the instructor. Each paper is to be revised and submitted to the instructor with a cover sheet that indicates how the student dealt with each of the criticisms.

Honors Thesis (P, T)
V31.0450  Formerly V31.0400. Identical to C31.0450. Prerequisite: V31.0410. Open only to students in the honors track. Offered in the spring. 4 points.
Students interested in pursuing Honors Thesis should meet with the director of undergraduate studies in the spring semester of their junior year.

Independent Study (P, T)
V31.0997,0998  Identical to C31.0997,0998. Prerequisites: V31.0010 and V31.0012 (or V31.0011 and V31.0013), and permission of the director of undergraduate studies. No more than a total of 8 points of independent study may be taken. Offered every semester. 1 to 4 points.
The student engages in intensive independent study of an important economic topic under the direction of a departmental faculty member. The results of the study are embodied in a report of a type required by the instructor.