Economics and Accounting

Economics provides important and powerful insights into the human experience through the study of how people allocate scarce resources among competing demands. Studying economics at Holy Cross gives students a particular way of thinking, as well as the tools necessary to interpret the fascinating and intricate workings of the local, national and international economy.
Students may also choose to elect the College’s renowned accounting major. Accounting majors follow a core curriculum to learn how financial information is developed for and used by decision makers in the economy.
Economics 111, 112 - Principles of Economics
Annually
Develops principles which explain the operation of the economy and suggest alternative policy solutions to contemporary economic problems. Principles of Macroeconomics (fall) develops the principles of national income analysis, money, economic growth and international trade. Principles of Microeconomics (spring) covers principles governing commodity and resource pricing under different market conditions and the distribution of income. May be taken in either order. One unit each semester.

Lower Level Electives
Econ 218 - Urban Economics
Inactive at this time
Applies economic tools to study the complex problems of the urban community. Attention is focused on an increased understanding of the emerging policy issues facing cities. Special emphasis is given to the location and growth of cities, the interaction of poverty and urban housing and labor markets, and policy options to encourage urban development.
Economics 221 - Economic Development of Modern China
Annually
Aims to provide the student with a sophisticated understanding of economic development in the People’s Republic of China. The historical circumstances and resource endowments which have constrained Chinese economic development are examined as a basis for analyzing the intentions and success of policies adopted since 1949. Prerequisites: Economics 111, 112, or permission. One unit.
Economics 222 - Health Economics
Alternate years
Applies microeconomic tools to study the expanding health care industry. Topics include the demand for health and medical care, health insurance markets, managed care organizations, physician supply decisions, hospital structures, government provision of health insurance, medical malpractice and international comparisons of health care systems. Special emphasis is placed on ethical issues that arise in determining what choices society must make in the provision of health care. Prerequisites: Economics 111, 112. One unit.
Economics 224 - Environmental Economics
Annually
Shows how natural resource usage and environmental issues can be analyzed from an economic perspective. Presents the basic concepts of environmental economics and develops the analytical and policy tools used in environmental economics. Considers the problems of air pollution, water pollution and solid and hazardous waste management, their causes and how they can be reduced. Other topics such as global warming, amendments to the Clean Air Act and international environmental issues will be discussed. Prerequisites: Economics 111, 112. One unit.
Economics 229 - Economics of Sports
Annually
Applies economic tools to study the field of professional and collegiate sports. Topics include the organization of sports leagues, profit maximization by teams, the application of antitrust to sports, competitive balance, labor relations, gender and racial discrimination, the tension between academics and athletics at universities and the economic impact of sports on local economies. Special emphasis is placed on the relationship between law and economics in sports and the regulation of leagues and athletes. Prerequisites: Economics 111, 112. One unit.
Economics 230 - Financial Markets and Institutions
Annually
A basic introduction to the main features of financial institutions and markets in the United States. First part covers interest rates, including rate of return calculations, how markets determine the overall level of interest rates and why different securities pay different interest rates. Second part covers financial markets and the assets that are traded on those markets, including the money, bond, stock and derivatives markets. Last section details workings of some financial institutions, including banks, mutual funds and investment banks. When discussing these institutions, particular attention is paid to conflicts of interest. Prerequisites: Economics 111, 112. One unit.
Economics 299 - Special Topics in Economics Annually
Courses explore various topics such as the economics of education, energy, game theory, and political economy.
The subject and format varies by offering. One unit.

Statistics and Intermediate Theory
Economics 249 - Statistics
Fall, spring
An introduction to statistical methods emphasizing the statistical tools most frequently used in economic analysis. Topics include descriptive statistics, probability theory, random variables and their probability distributions, estimation, hypothesis testing and linear regression analysis. Prerequisites: Economics 111 or 112. One unit.
Economics 255 - Microeconomics
Fall, spring
Analyzes the economic behavior of households and firms and their interrelations within the market. Price and resource allocations in the following market structures are considered: pure competition, monopolistic competition, oligopoly, monopoly and monopsony. Concludes with a discussion of general equilibrium and its welfare implications. Prerequisites: Economics 111, 112; Mathematics 126 or 132 or 134 or 136 or equivalent. One unit.
Economics 256 - Macroeconomics
Fall, spring
Studies aggregate economic behavior as determined by interactions among the product, financial and labor markets. Variables focused upon are the general levels of prices, of national income and of employment. Applications of the theory are made and policy inferences are drawn with respect to employment and price stability, growth and development, trade and the global economy. Prerequisites: Economics 111, 112; Mathematics 126 or 132 or 134 or 136 or equivalent. One unit.

Upper Level Electives
Economics 302 - Industrial Organization and Public Policy
Alternate years
Studies the theoretical and empirical relationships among market structure, conduct and performance in American industry. The knowledge gained is used to evaluate U.S. antitrust policy. A number of industry case studies and landmark court decisions are read. Prerequisite: Economics 255. One unit.
Economics 303 - Labor Economics
Alternate years
Analyzes the labor market and the allocation of human resources. Topics include theories of unemployment and job search, wages, collective bargaining, income inequality and poverty, education, discrimination, household economics, and major issues of public policy. Prerequisite: Economics 255 and 256. One unit.
Economics 304 - Law and Economics
Annually
Examines the relative efficiency of alternative legal arrangements using microeconomics as the basic investigative tool. Core of the course consists of a thorough analysis of the common law. Special emphasis is given to the areas of property, contract, liability and criminal law. Prerequisite: Economics 255. One unit.
Economics 305 - Economic Growth and Development
Alternate years
Examines the theoretical and institutional factors influencing economic growth. Attention is given to various models of economic growth, the relationships among social, political and economic institutions and the pattern of economic growth, the optimal public policy mix for economic growth and special problems of growth faced by the developing nations. Prerequisites: Economics 255, 256. One unit.
Economics 307 - Theory of International Trade
Annually
Examines the causes and consequences of the trade of goods and services among nations. Attention is given to the principle of comparative advantage, the Ricardian model of trade, the factor endowments theory of trade, the specific factors model, new theories of trade, the causes and consequences of trade restrictions, economic growth and trade, international factor movements and economic integration. Prerequisites: Economics 255, 256. One unit.
Economics 308 - International Macroeconomic Theory and Policy
Annually
Examines the macroeconomic and financial relations among nations. Attention is given to the international transmission of fiscal and monetary policies, foreign exchange markets in the short run and long run, choice of exchange rate regimes, balance of payments accounting and interest rate adjustment and arbitrage. Prerequisites: Economics 255, 256. One unit.
Economics 309 - Comparative Economic Systems
Annually
First segment develops an analytical framework for the comparison of economic systems. Second segment uses this framework to examine and compare the economic systems of various countries including the United States, Germany, France, Japan, China, the former Soviet Union and other East European states. Prerequisites: Economics 255, 256. One unit.
Economics 310 - Experimental Economics
Alternate years
Emphasizes the interplay between theoretical models and laboratory observation in the development of microeconomics. Topics might include experimental methods, preference and choice, risk and uncertainty, expected utility maximization, game theory, industrial organization, search, bargaining, auctions, asset markets, asymmetric information, public goods and voting. A number of classroom experiments are conducted. Prerequisites: Economics 249, 255. One and one-quarter units.
Economics 312 - Monetary Theory
Alternate years
This course builds a model of the financial sector of the economy, uses it to gain an understanding of the workings of the financial system, and makes predictions of the effects of events on the financial system and economy as a whole. Particular emphasis is placed on understanding the workings of the Federal Reserve System and monetary policy. Thus, this course provides an understanding of the role and measurement of money; the theories of money demand and money supply; the workings of the banking system; interest rate determination; how prices of stocks, bonds and other assets are determined; and the role the financial system plays in the macroeconomy. Prerequisites: Economics 255, 256. One unit.
Economics 313 - Mathematics for Economists
Alternate years
Augments the mathematical backgrounds of students interested in pursuing a more quantitative approach to economics and business. Emphasis is on linear systems, matrix algebra, differential vector calculus and optimization. Topics may also include game theory, integral calculus and dynamic analysis. Mathematical methods are illustrated with various economic applications. Prerequisites: Economics 255. One unit.
Economics 314 - Econometrics
Annually
Studies statistical methods used to estimate and test economic models. After a review of basic probability and statistics, the method of ordinary least squares regression is examined in detail. Topics include the Gauss-Markov theorem, inference, multicollinearity, specification error, functional forms, dummy variables, heteroskedasticity and autocorrelation. Simultaneous equations and qualitative dependent variables may also be considered. A quantitative research paper is required. Prerequisites: Economics 249, 255. One unit.
Economics 316 - Economics of Peace, Conflict and Defense
Annually
Economic principles are applied to the study of international and regional conflicts and predator/prey relationships in an economy. Topics include war, conflict resolution, arms races, arms control, ethnic conflict, terrorism, the arms trade, defense industry issues and attack/defense behavior in the economic realm. Prerequisite: Economics 255. One unit.
Economics 320 - History of Economic Thought
Annually
Surveys the thoughts and ideas of philosophers and economists throughout history who attempted to understand the workings of what we now call the economy. A long time span is covered, going briefly as far back as the ancient Greek writers, moving through the Scholastics, Mercantilists and Physiocrats, but with a particular focus on the pivotal contributions of the Classical writers including Adam Smith, David Ricardo and Karl Marx. Neoclassical thought is contrasted with institutional and historical critics, leading to the great debate between capitalism and socialism. Changes in macroeconomic theory associated with John Maynard Keynes, the post-Keynesian views of macro and the more modern formulation of microeconomics with its emphasis on econometric analysis round out the course. Prerequisites: Economics 255, 256. One unit.
Economics 324 - Economics of Energy
Annually
This course will allow students to develop an understanding of many fields of economics that relate to energy, including finance, game theory, basic microeconomics, and environmental economics.  Particular attention will be paid to current day, real-world applications of economics in the energy world.  Topics covered include global warming, cartel behavior, cap-and-trade legislation, options and futures markets, and the economics of renewbale energy sources.  Prerequisite: Econnomics 255. One Unit.
Economics 325 - Public Economics
Alternate years
Surveys theories of public expenditure and taxation and delves into specific topics such as health care, social insurance, education, tax reform, fiscal federalism and deficit finance. Prerequisites: Economics 255, 256. One unit.
Economics 326 - Economics of the Arts
Annually
Examines the markets for the performing and visual arts in the United States. The course begins by utilizing economic tools to analyze supply and demand in these markets, and then covers a number of special topics. Issues considered include copyrights, ticket scalping, performer wages and labor unions, government subsidization of the arts, auctions, art as an investment and the political economy of the arts sector. Prerequisites: Economics 249, 255. One unit.
Economics 340 - Economics of EducationAnnually
Analyzes issues in education from an economic and statistical perspective. Topics include educational production functions, educational investment, teacher markets, peer effects, accountability reform, racial issues and more. Prerequisites: Economics 249, 255. One unit.
Economics 400 - Directed Readings in Economics
Annually
A program in reading and research in a specific topic open to majors with a minimum GPA of 3.25. Permission of the instructor is required. One unit.

Honors Program
Economics 460 - Research Methods - Seminar 1
Spring
A department honors seminar that examines the methodology used by economists. Students learn what the economist does by examining specific economic studies. The steps involved in undertaking research and alternative methodological approaches are treated. A high level of student participation is expected. By the end of the seminar the students settle upon topics that they will research in the fourth year and write a prospectus. Counts toward the major as the equivalent of a lower-level economics elective. One unit.
Economics 461 - Research Methods - Seminar 2
Spring
This is the same as Economics 460. Fourth-year honors students participate for a second time in the seminar by presenting their completed research projects and by serving as resource persons for other honors students. Prerequisites: Economics 460, 462. One-half unit.
Economics 462 - Honors Directed Research
Fall
Honors students undertake a research project under the direction of a department faculty member. The results are presented in the form of a thesis. Counts toward the major as the equivalent of an upper-level economics elective. Prerequisite: Economics 460. One unit.