Florida State University General Bulletin 1998-1999

FSU Homepage Office of the Registrar On-Line Registration 1997-1999 Graduate Bulletin Table of Contents

Academic Departments and Programs (course descriptions)

Department of ECONOMICS


Chair: James Cobbe;
Professors: Adamovich, Bell, Benson, Canterbery, Cobbe, Downing, Fournier, Gapinski, Gwartney, Hirsch, R. Holcombe, Macesich, Macpherson, Marquis, Norrbin, Rasmussen, Schlagenhauf, Serow, Sliger, Sorensen;
Associate Professors: Beaumont, McCaleb, Prasad, Sass, Schmertmann, Zuehlke;
Visiting Assistant Professor: Burke;
Service Professor: Laird;
Courtesy Professors: Baker, Elzie, Fresen, L. Holcombe, Rust;
Professors Emeriti: Colberg, Rockwood

The Department of Economics offers an excellent curriculum that is as diversified as the discipline itself. The program strives to make undergraduates aware of the critical issues in economic science and policy, to provide them with a basic understanding of the tools needed to analyze those issues, and to prepare them for academic or professional opportunities beyond the baccalaureate degree.

The Department of Economics cooperates in the following interdivisional programs: inter-American studies, international affairs, comparative policy studies, the interdisciplinary program in social science, Asian studies, Russian and East European studies, demography, and policy sciences.

A Guide to Undergraduate Studies in Economics is available from the department.

On the Internet, the departments home page can be found at: http://www.fsu.edu:/~economic/

State of Florida Common Course Prerequisites

The State of Florida has identified common course prerequisites for this University degree program. Specific prerequisites are required for admission into the upper-division program and must be completed by the student at either a community college or a state university prior to being admitted to this program. Students may be admitted into the University without completing the prerequisites, but may not be admitted into the program.

The following lists the common prerequisites or their substitutions necessary for admission into this upper-division degree program:

Economics-Social Sciences

1) ECO X013 and ECO X023 or six (6) semester hours in economic courses (ECO prefix).

Note: The Florida State University does not offer an Economics-Business major.


Core Program

Admission to the undergraduate program is based upon the availability of faculty and space and upon academic performance. Students with fifty-two (52) or more acceptable credit hours, both ECO 2013 and 2023 completed with a grade of C (2.0) or better, and who are in good standing with the University, will receive priority consideration but are not guaranteed admission to the program.


Twenty-four (24) semester hours in economics beyond ECO 2013 and 2023 are required. ECO 3213, 4101, 4203, and six (6) additional semester hours at the 4000 level are required of all majors. Six (6) semester hours must be earned by economics majors in one economics specialty area. Majors will also complete STA 3014, ACG 2021, and MAC 1105. Calculus is strongly recommended for those students considering graduate work in economics. An overall C average in economics and supporting courses (MAC 1105; STA 3014; and ACG 2021) is required of majors. Majors will not receive credit toward the major for courses in which a grade of D- has been received. A minimum of fifteen (15) semester hours in economics courses must be taken at The Florida State University.

Students are expected to complete the principles sequence (ECO 2013, 2023) before declaring economics as their major. All majors must earn a grade of C (2.0) or better in both ECO 2013 and 2023. Final exams for ECO 2013 and 2023 are scheduled for the same time period of exam week. The department tolerates students taking the courses in the same semester, but neither recommends nor encourages it. Students taking the courses simultaneously should be prepared to take both exams back-to-back at the appointed time, or to take one exam at the appointed time and the other during the regularly scheduled makeup time on the last day of finals. Either option must be approved by the instructors involved.

Majors in economics must take at least six (6) semester hours of economics each term until the requirements for the major have been completed. Majors must also complete two of the three required core courses in economic theory (ECO 3213, 4101, 4203) by the end of the second term as a junior, and the third of the core courses must be completed by the end of the third term as a major. Failure to meet either of these conditions may result in students being dropped from the economics program, in which case such students will have to be accepted in another major before they can register again for classes.

Undergraduate students who intend to major in economics should take ECO 2013 and 2023; MAC 1141; STA 3014; and ACG 2021 (or one of the alternate courses for ACG 2021 that are listed below) before completing undergraduate studies.

Alternate courses for ACG 2021

  1. A second course in statistics (e.g., STA 2122);
  2. Calculus (e.g., MAC 2233 or MAC 2311); or
  3. Computer programming (e.g., CGS 3462).

Students not completing the above requirements during basic studies and who wish to major in economics must complete all the requirements no later than the end of the junior year.

Major in Applied Economics

In addition to the regular major in economics, there is also an alternate major in applied economics. The major in applied economics requires ECO 3114, 3213, and 4264; twelve (12) additional semester hours of ECO, ECP, or ECS 3000 or 4000 level courses; and ACG 2021 and ACG 2071, CGS 2100, MAC 1105, and STA 3014. Substitutes for the ACG courses are not permitted for the applied major; it is highly desirable for students to take CGS 2100 before their upper division economics courses. Students in the applied major are encouraged to earn three to six semester hours of credit through the departments internship program, which requires simultaneous registration in ECO 4944r and ECO 4949r; arrangements and approval must be obtained before the semester in which they are to be taken.

A student majoring in economics must complete the minor requirements specified by a supporting academic department. The selection of a supporting department is subject to the approval of the undergraduate adviser.

The minor requirement applies to both the regular and the applied major. Students in the applied major may complete a minor in business with only an additional six (6) semester hours of College of Business courses.

Students in both majors are required to meet the Universitys oral competency requirement.


Majors in economics may be awarded either the bachelor of science or the bachelor of arts degree upon completion of all University requirements for those degrees.

An economics department certification of subject area concentration will be given, upon request, to economics majors with a grade of B or better in each course taken in a subject area.

Honors in the Major

The Department of Economics offers a program in honors in the major to encourage talented juniors and seniors to undertake independent and original research as part of the undergraduate experience. For requirements and other information, see the University Honors Program and Honor Societies section of this General Bulletin.

Minor in Economics

Requirements for undergraduate students minoring in economics are fifteen (15) semester hours in departmental courses, including ECO 2013, 2023, and at least three (3) semester hours in courses numbered 4000 or above. ECO 2000 will not count towards the minor. No more than six (6) semester hours of transfer credit will be accepted toward the minor. Economics minors must have at least a C (2.0) grade point average in their economics course work.

Minor in Applied Economics

The applied economics minor is identical to the regular economics minor, except that one of the courses taken must be ECO 3114, 3213, or 4264. Note that it is possible for either minor to include the nine (9) semester hours of required upper division courses for either the regular or applied major.

Definition of Prefixes

AMH - American History

ECO - Economics

ECP - Economic Problems and Policy

ECS - Economic Systems and Development

Undergraduate Courses

AMH 3370. Economic History of the United States (3). A survey of American economic history from the early colonial beginnings to the present. The course analyzes the role of economic issues and events in American history. Major attention is directed to the 20th century. The course proceeds chronologically and is broken into 12 time periods.

ECO 2000. Introduction to Economic Thinking (3). A survey of the discipline for people taking only one economics course. Historical perspective and major principles of theory are presented. Not to be taken by students who have had or who must take ECO 2013 and 2023. Not applicable to the economics major or the economics minor.

ECO 2013.Economics of the National Economy (3). Aggregate economics and national income determination, money and monetary theory, present macroeconomic conditions, and aggregative policy alternatives; theory of international trade and the balance of payments; economic growth and development. Note: final exam is given at the same time as ECO 2023.

ECO 2023. Economics of the Price System (3). The course covers consumption, production, and resource allocations considered from a private and social point of view; microeconomic problems and policy alternatives; economics of inequality, poverty; and comparative economic systems. Note: final exam is given at the same time as ECO 2013.

ECO 3114.Applied Microeconomic Analysis (3). Prerequisites: ECO 2013, 2023. Applications of microeconomic theory for business and policy analysis. Topics include the theory of the firm, valuation techniques in the absence of market prices, empirical research with accounting, financial and administrative data, theory of supply and business strategy, cost-benefit methods.

ECO 3213. Money, Banking, and Monetary Policy (3). Prerequisites: ECO 2013, 2023. The functions of money, bank creation of deposits, and credit; Federal Reserve control of money supply; and monetary theory and policy questions.

ECO 3303. History of Economic Ideas (3). Prerequisite: ECO 2000 or equivalent. The evolution of economic ideas from ancient Greece to the modern period emphasizing the relationship between developments in economic analysis and cultural/technological changes. Critique of modern economic theory in terms of its sources and logical content.

ECO 3622. Growth of the American Economy (3). Prerequisites: ECO 2013, 2023. Factors in the development of economic forces, resources, institutions, and ideas relating to American economic growth analyzed through growth theories and issue debates on economic history.

ECO 3933r. Special Topics in Economics (3). Prerequisites: ECO 2013, 2023. This course code is used for special topics of current interest or to benefit from the specialties of visiting faculty. May be repeated to a maximum of six (6) semester hours. May be repeated within the same semester.

ECO 3949r. Cooperative Education Work Experience (0). (S/U grade only.)

ECO 4101. Intermediate Microeconomic Theory (3). Prerequisites: ECO 2013, 2023. Supply, demand, cost of production, theory of the firm, factor price determination, and other microeconomic resource allocation questions.

ECO 4203. Money and National Income Determination (3). Prerequisite: ECO 3213. The basic model of income determination is built emphasizing the roles of real and monetary sectors of the economy. Results of empirical work are surveyed.

ECO 4224. Issues in Money and Banking (3). Prerequisite: ECO 3213. The role of monetary policy in various macroeconomic theories is emphasized. Focus on controversy over the effects monetary policy has on employment, inflation, and interest rates.

ECO 4264. Introduction to Economic Forecasting (3). Prerequisites: ECO 2013, 2023; STA 3014. Provides a hands-on survey of forecasting methods used in business and economics. Students work extensively with computer-based statistical software to solve actual cases encountered in the business world.

ECO 4401. Introduction to Mathematical Economics (3). Prerequisites: ECO 2013, 2023, college calculus. Quantitative methods applied to economics using probability and matrix algebra.

ECO 4421.Introduction to Econometrics (3). Prerequisites: STA 3014; ECO 2013, 2023. This course introduces statistical inference, estimation theory, model building, and forecasting methods. Emphasis is on model building and policy analysis. Extensive use is made of PC econometric software.

ECO 4504. Federal Public Finance (3). Prerequisites: ECO 2013, 2023. The logic of collective actions, principles of government expenditures, theory and practice in taxation, shifting and incidence of taxes.

ECO 4532.Public Choice (3). Prerequisite: ECO 2023 or permission of instructor. Economic models are used to analyze political decision making. A theory of constitutions is developed and applied to the U.S. Constitution. Models of majority rule decision making and bureauractic supply are used to develop an understanding of supply and demand in the public sector.

ECO 4554. State and Local Public Finance in the United States (3). Prerequisites: ECO 2013, 2023, 4504; or consent of instructor. State and local revenues, expenditures, and borrowing; intergovernmental relationships.

ECO 4704. International Trade (3). Prerequisites: ECO 2013, 2023; or equivalent introductory courses in economics; ECO 4101 is a recommended background course. Theory of international trade, the gains from trade, tariffs and other trade restrictions, cartels.

ECO 4713. International Finance (3). Prerequisites: ECO 2013, 2023; ECO 3213 and 4203 are recommended background courses. Balance of payments; disequilibrium and adjustments; birth, evolution, and demise of the Bretton Woods System; the managed float; international monetary reform; multinational corporations.

ECO 4905r. Directed Individual Study (1-3). May be repeated to a maximum of six (6) semester hours.

ECO 4915r.Senior Tutorial in Economics (1-3). (S/U grade only.) Prerequisites: senior economics major or minor; or instructors permission. This course will cover selected topics in economics. Maximum enrollment of five (5) students in each tutorial. Repeatable one time to a maximum of six (6) semester hours.

ECO 4934r. Honors Work (3). May be repeated to a maximum of nine (9) semester hours.

ECO 4944r.Field Study in Economics (1-3). Prerequisites: ECO 3114, 3213, 4264. Corequisite: ECO 4949r. Students receive credit toward the economics major for applied and practical experience working in a variety of organizations such as state agencies, banks, and finance departments. May be repeated to a maximum of three (3) semester hours.

ECP 3113. Economics of Population (3). Determinants and consequences of world population growth and changes, components of population growth in more and lessdeveloped countries, population and food supply/nonrenewable resource interrelationships.

ECP 3203. Labor Economics (3). Prerequisite:ECO 2023 or instructors approval. Theoretical and empirical examination of wage determination, income maintenance programs, labor force, employment, unemployment, functioning of labor markets, and manpower programs.

ECP 3213. Economics of Industrial Relations (3). Industrial relations in the public and private sectors examined from the perspective of history, theory, and institutions.

ECP 3302. Economics of Natural Resources, Energy, and the Environment (3). Prerequisite: ECO 2000 or equivalent. The relationship between natural resource availability and growth, capital theory, economics of the environment, the U.S. energy problem and alternatives for the future, an economic appraisal of U.S. energy policy.

ECP 3322. Economics of Living Marine Resources (3). The economic role of commercial and recreational fishing industries in the U.S. and world, fishery management schemes, resources depletion and environmental deterioration, issues on current and potential food from the sea. An interdisciplinary course with no previous economics courses required.

ECP 3403. Economics of Industrial Organization (3). Prerequisite: ECO 2023. An introduction to the economic analysis of industry, a survey of market structures, oligopoly and collusion, a variety of commercial practices under imperfect competition, the welfare consequences and policy approaches to the problems of monopoly.

ECP 3451. Economics and the Law (3). Prerequisite: ECO 2023. The course is focused on the impact of the legal system on economic activity and the role of economic analysis in assessing the relative efficiency of alternative legal rules and institutions.

ECP 3530. Economics of Health (3). Prerequisites: ECO 2013, 2023. The course provides an overall view of the U.S. health care system, focusing on the following topics: demand for medical care, health insurance, hospitals, physician services, regulation versus competition for cost containment, alternative delivery care systems, financing uncompensated care, Medicare prospective payment system, long-term care, and economic issues concerning health-related behavior (i.e., alcohol, tobacco).

ECP 3703. Business Economics (3). Prerequisites: ECO 2013, 2023. Economic decision making by the firm in relation to the industry and to the economic and regulatory environment in which it operates.

ECP 4413. Social Control of Business (3). Prerequisite: ECO 2023. An introduction to the economic analysis of antitrust law and regulation. Topics include price fixing, monopolization, predatory pricing, exclusive dealing, tie-ins, price discrimination, mergers, antitrust enforcement policies, and case studies in economic regulation.

ECP 4623. Regional Economics (3). Prerequisites: ECO 2013, 2023. The economics of subareas of nations with special emphasis on regional economic developments. Includes the theory of the location of industry.

ECS 3003. Comparative Economic Systems (3). Prerequisites: ECO 2013, 2023. Theoretical and practical aspects of the principal forms of economic organization. Emphasis on the varieties of market-based systems, and economies in transition from centrally-planned toward market economies.

ECS 4013. Economics of Development (3). Prerequisites: ECO 2013, 2023. Economic development as a process, description and analysis; alternative overall theories of development; particular problems and policy responses to them; strategic choices in development policy. Main focus on third world economies.

ECS 4333. Transition of Soviet and Eastern European Economies (3). Prerequisites: ECO 2013, 2023. Describes and analyzes the formerly centrally planned soviet economy and its transformation. Case studies include Russia, members of the Commonwealth of Independent States and Eastern European countries. Analyzes the successes and failures of the transition process, particularly privatization and marketization.

Graduate Courses

ECO 5005. Economic Principles for International Affairs (3).

ECO 5111. Intermediate Microeconomic Theory (3).

ECO 5114. Applied Microeconomics (3).

ECO 5115. Product Markets and the Theory of the Firm (3).

ECO 5116. Imperfect Competition, Factor Markets, and Income Distribution (3).

ECO 5205. Money and National Income Determination (3).

ECO 5206. Income, Employment, and Inflation (3).

ECO 5216. Money and the Macroeconomic System (3).

ECO 5226. Issues in Money and Banking (3).

ECO 5305. Preclassical, Classical, Marxian, and Marginalist Thought (3).

ECO 5403. Static Optimization in Economics (3).

ECO 5405. Introduction to Mathematical Economics (3).

ECO 5408. Computational Economics I (3).

ECO 5416. Applied Quantitative Methods I (3).

ECO 5421. Basic Applied Econometrics (3).

ECO 5423. Applied Quantitative Methods II (3).

ECO 5424. Simultaneous Equation Models (3).

ECO 5425. Time Series Analysis (3).

ECO 5426. Bayesian Methods in Econometrics and Economics (3).

ECO 5427. Limited Dependent Variable Models (3).

ECO 5516. Public Finance (3).

ECO 5525. Public Choice (3).

ECO 5705. International Trade (3).

ECO 5706. Seminar in International Trade Theory and Policy (3).

ECO 5715. International Finance (3).

ECO 5716. Seminar in the Theory and Policy of International Finance (3).

ECO 5906r. Directed Individual Study (3).(S/U grade only.)

ECO 5907r. Directed Individual Study (3).

ECO 5914. Supervised Research (1-6). (S/U grade only.)

ECO 5932r. Graduate Tutorial in Economics (1-3).

ECO 5935r. Seminar in Political Economy (13).

ECO 5936r. Special Topics (1-3).

ECO 5940r. Supervised Teaching (1-6). (S/U grade only.)

ECO 5972. Extended Masters Paper (3).(S/U grade only.)

ECO 6209. General Equilibrium Approaches to Money and Macroeconomics (3).

ECO 6236. Advanced Monetary Theory and Policy (3).

ECO 6645. Monetary Theory and History (3).

ECO 6936. Topics in Microeconomics (3).

ECO 6938r. Doctoral Workshop (0-3). (S/U grade only.)

ECO 6939r. Teaching Workshop (0-3). (S/U grade only.)

ECP 5106. Human Capital (3).

ECP 5115. Seminar in the Economics of Population (3).

ECP 5116. Applied Economic Demography (3).

ECP 5117. Mathematical Demography (3).

ECP 5207. Labor Markets (3).

ECP 5224. Labor Compensation, Contracts, and Collective Bargaining (3).

ECP 5311. Natural Resource Economics I (3).

ECP 5312. Natural Resource Economics II (3).

ECP 5405 Industrial Organization (3).

ECP 5415. Social Control of Business (3).

ECP 5536. Seminar in Health Economics (3).

ECS 5005. Seminar in Comparative Economics Systems (3).

ECS 5015. Economic Development: Theory and Problems (3).

ECS 5025. Economic Development: Policy and Programming (3).

ECS 5315. Economic Development of Southeast Europe (3).

For listings relating to graduate course work for thesis, dissertation, and masters and doctoral examinations and defense, consult the Graduate Bulletin.