Economics 504, ECONOMICS FOR NONECONOMISTS
Spring 2002
Tuesdays, 5:30-8pm, 143 Debartolo
DAVID F. RUCCIO
Syllabus
There are four parts to this reading list and course.
Part 1 is an introduction to economic theories and economic history. There are
many economic theories in the world today. The most prevalent in the United
States is called neoclassical economics. Neoclassical economic theory arose
within the social (economic, political, and cultural) conditions of the
late-nineteenth century. The first part, therefore, covers the basic
theoretical debates between neoclassical and other economic theories and the
history of neoclassical economic theory.
According to neoclassical economists, all economies
and economic events can be understood in terms of supply and demand. Part 2
concentrates on this neoclassical theory of supply and demand. After reviewing
the basic concepts of supply and demand, we investigate the following question:
what determines the supply and demand behavior of individuals and firms? Within
neoclassical theory, given aspects of nature—preferences, technology, and
endowments—are the underlying determinants of supply and demand and,
thus, of market prices and the distribution of income. Therefore, the second
part examines the concepts and method of the neoclassical "theory of
value," from the initial determinants to the final outcomes, together with
some of the main criticisms of neoclassical theory.
Marxian economics is one of the principle alternatives
to neoclassical theory in the world today. Therefore, Part 3 is focused on the
method of Marxian economics, the basic elements of the Marxian theory of value,
and applications of that theory to contemporary economies and societies.
We then return, in Part 4, to the issue of theoretical
differences and the importance of these theoretical differences for economic
policymaking and other economic decisions we make on a daily basis. The
remainder of this final part of the course is left to investigate specific
topics. The themes and readings will be chosen based on the disciplinary
background and research interests of the students in the course.
Together, these four parts form an introduction to
economics for noneconomists: first, to different economic theories and their
history; then, to the concepts of supply and demand and the neoclassical theory
of value; then, to Marxian economic theory; and, finally, to the contemporary
uses of economic analysis on specific topics and themes.
Course Requirements. All students are expected to complete the assigned
readings, before the
material is covered in class, and to participate fully in classroom
discussions. In addition, grading will be based on three research papers, each
8-10 pages, after the second, third, and fourth parts of the course outline.
Each of these papers will make up one third of the final grade. A list of resources for these papers is available on my web site.
Texts and Readings. One textbook has been ordered for the course: Economics:
Marxian versus Neoclassical, by
Richard D. Wolff and Stephen A. Resnick (hereafter, Wolff & Resnick). All
other readings are available on electronic reserve or on the internet.
PART I: ECONOMIC THEORIES, HISTORY, SUPPLY AND DEMAND
Introduction:
Economic Theories and History (15
January)
- Wolff & Resnick, chapter 1
PART II: NEOCLASSICAL THEORY OF VALUE
The
Basic Concepts of Supply and Demand (22
and 29 January)
- Wolff & Resnick, chapter 2 (pp. 38-50)
- Handout
From Human Nature to Price and the Distribution of
Income (5 and 12 February)
- Wolff & Resnick, chapter 2 (pp. 50-87)
"Invisible Hand" and Keynes (19 and 26 February)
- Wolff & Resnick, chapter 2 (pp. 88-124)
PAPER
1 (26 February)
PART
III: MARXIAN ECONOMIC THEORY
Marxian
Tradition and Concepts of Class (5
March)
- Wolff & Resnick, chapter 3 (pp. 125-54)
Marxian
Value Theory (19 March)
- Wolff & Resnick, chapter 3 (pp. 155-79)
Extensions (2 April)
- Wolff & Resnick, chapter 3 (pp. 179-235)
PAPER
2 (9 April)
PART
IV: CONTEMPORARY ISSUES
Theoretical
Differences (9 April)
- Wolff & Resnick, chapter 4
National Income Accounting (9 April)
- F. S. Weaver, "The Economy as a Whole: Definitions and Analyses," in Economic Literacy: Basic Economics with an Attitude (New York: Rowman & Littlefield, 2002)
Ethics and Economics (16 April)
- A. Sen, "Economic Behavior and Moral Sentiments," in On Ethics and Economics, 1-28 (New York: Basil Blackwell, 1987)
- G. F. DeMartino, "Distributive Justice and Economic Heterodoxy," in Global Economy, Global Justice: Theoretical Objections and Policy Alternatives to Neoliberalism, 91-127 (New York: Routledge, 2000)
- D. Hollenbach, "Christian Social Ethics after the Cold War: Centesimus Anus on Economic Systems," Theological Studies 53 (March 1992): 75-95
- M. Novak, "Capitalism Rightly Understood," in The Catholic Ethic and the Spirit of Capitalism (New York: Free Press, 1993)
Global Developments (23 April)
- World Bank, World Development Report 2002: Building Institutions for Markets (New York: Oxford University Press, 2002)
- United Nations Development Programme, Human Development Report 2001: Making New Technologies Work for Human Development (New York: Oxford University Press, 2001)
Economic
Journalism (30 April)
- S. O. Ilesanmi, "Civil-Political Rights of Social Economic Rights for Africa? A Comparative Ethical Critique of a False Dichotomy," Annual of the Society of Christian Ethics 17 (1997): 191-212
- A. E. Roth, "Individual Rationality as a Useful Approximation: Comments on Tversky's 'Rational Theory and Constructive Choice'"
- G. Cowley, "Biggest Bet Yet," Newsweek, 4 February 2002, pp. 45-52
- T. Lifton, "U.S. Global Debt May Be Smaller, Fed Study Finds," Wall Street Journal, 16 April 2002
- Economist Global Agenda, "Measuring the Recovery," Economist.com, 15 April 2002
- A. Sloan, "Enron and Fuzzy Math," Newsweek, 4 February 2002, pp. 22-23
- J. Madrick, "Enron, the Media and the New Economy," Nation, 1 April 2002, pp. 17-20
- T. Shorrock, "Crony Capitalism Goes Global," Nation, 1 April 2002, pp. 11-16
- D. C. Johnston, "Tax Treaties with Small Nations Turn into a New Shield for Profits," New York Times, 16 April 2002
- W. Mellor, "Under the Gun," Asiaweek.com, 26 October 2001
- P. Krugman, "Bahtulism: Who Poisoned Asia's Currency Markets?" Slate.com, 15 August 1997
- M. Camdessus, "The Asian Financial Crisis and the Opportunities of Globalization," 31 October 1997
- J. D. Sachs, "The Wrong Medicine for Asia," New York Times, 3 November 1997
- Economist, "Kill or Cure?" Economist, 1998
- Economist, "Sovereign Bankruptcies," Economist, 6 April 2002, p. 67
- M. Weisbrot and D. Baker, "What Happened to Argentina?" 31 January 2002
- Globalissues.org, "Structural Adjustment--A Major Cause of Poverty"
- M. Cooper, "From Protest to Politics," Nation, 11 March 2002, pp. 11-16
- C. Karmin, "Brazilian Shares Fall While Mexican Issues Rise. . .," Wall Street Journal, 16 April 2002, p. C14
- M. Farivar, "Oil Futures Stage Rally as Events in Venezuela. . .," Wall Street Journal, 16 April 2002
- Economist Global Agenda, "Counting the Cost," Economist.com, 8 April 2002
PAPER 3 (8 May)