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)

PART II: NEOCLASSICAL THEORY OF VALUE

The Basic Concepts of Supply and Demand (22 and 29 January)

From Human Nature to Price and the Distribution of Income (5 and 12 February)

"Invisible Hand" and Keynes (19 and 26 February)

PAPER 1 (26 February)

PART III: MARXIAN ECONOMIC THEORY

Marxian Tradition and Concepts of Class (5 March)

Marxian Value Theory (19 March)

Extensions (2 April)

PAPER 2 (9 April)

PART IV: CONTEMPORARY ISSUES

Theoretical Differences (9 April)

National Income Accounting (9 April)

Ethics and Economics (16 April)

Global Developments (23 April)

Economic Journalism (30 April)

PAPER 3 (8 May)