Jim Whitney Office: South Swan S114
Phone: X2750
Email: whitney@oxy.edu
Home page: http://www.oxy.edu:80/~whitney
Economics 131: Spring 1999
THE WORLD ECONOMY
Course web address: http://www.oxy.edu/~whitney/ec131/crshome.htm

Economics 131 is an introduction to international economics directed primarily to non-economics majors. The course blends a relatively comprehensive treatment of the principles of international economic theory with applications of those principles to contemporary international economic issues. The major topics include international trade, trade policy, international resource migration and macroeconomic activity in a global economy. Economics 101 or the equivalent is a prerequisite for this course. Note: Economics 131 does not count for field credit for an Economics major, Economics minor, or DWA major with an emphasis in Economics.

    Course requirements: Your course grade will be distributed approximately as follows:

Three one-hour exams: 48%
Paper (approx.8 pages):
   Final submission: 24%
   Peer review of initial submission 6% 30%
Problem sets 12%
Participation (percentage of in-class activities conscientiously completed) 10%
 
Anticipated exam dates and assignment due dates are listed in the course schedule. Assignments must be turned in on time in order to receive full credit for them. You must conscientiously complete all course assignments in order to pass the course. You are also expected to abide by the other general policies which apply to the course. To read them over, select the "Policies" link on the course home page, which is accessible through the Web site listed under the course title above.

    Readings and materials: Each of the following is required for the course:

You can purchase the Workbook from me during the first two office hours of the semester. You may pay by cash, but a check made out to "Occidental College" is preferred (be sure to write your student ID number on your check).

Additional course readings (Other) are available online. You should, however, have your own copy of the text from Economics 101:
    Mankiw, N. Gregory. Principles of Economics. Orlando, FL: The Dryden Press, 1998.

    Tips: 1. Try to find other students to work with. When doing your problem sets, try working through problems on your own first, then try to help each other out. Educational research consistently shows that students working together learn better than students working alone.
    2. I invite and encourage you to come see me outside of class. No appointment is necessary to
visit me in my office during regular office hours. If you wish to meet with me at other times, just call
me (at 2750) or check with me at class time to set up an appointment.
 

Course Schedule
 
Dates 

Jan.20 
 

 Topics, Readings and Assignments  

Introduction 
    Text:  1, 3 (pp.62-64) 
 
Jan.22-29 

 

 I. Trade and its Benefits 
IA. Basic Trade Analysis 
    Text:  2, 5 (pp.109-110), 4 (pp.87-98), 7 (pp.206-210)
Feb.3 Problem Set 1 due 
   
Feb.1-17 IB. Explaining Trade Behavior 
1. Resource Endowments and Trade (The Heckscher-Ohlin model) 
    Text: 4 (pp.66-75) 
2. Technology and Trade 
    Text: 4 (pp.84-87)  
    Other: Vernon (1966) 
3. Market Structure and Trade 
    Text: 4 (pp.78-83) 
    Other: Krugman (1994) 
Feb.19 
Feb.24 
 		 Problem Set 2 due 
Exam 1 
 
  
Feb.19-26		 II. Trade Policy 
A. The Tools of Trade Policy  
    Text: 5 (pp.100-106, 109-113, 117-120), 6 (pp. 137-145, 148-159, 165-168) 
 
Mar.1-17 B. The Political Economy of Trade Policy  
    Text:  5 (pp.113-117, 123-134)  
    Other: Mussa (1993)
Mar.17 
 		 Problem Set 3 due 
 
Mar.19-22 C. Trade Policy in Practice  
    Text:  7 (pp.172-206), 5 (pp.106-107), 8, 9  
    Other: Hufbauer and Elliot (1994); Ishihara (1991); Krueger (1983); Krugman (1993); Weintraub (1997)
 
Mar.24-26 III. International Resource Migration 
    Text: 10  
    Other: Magee (1977), Borjas (1996)
Mar.30 
Apr.2 
 		 Tuesday, 9:30 AM: Problem Set 4 due 
Exam 2 
 
Mar.29-Apr.12 IV. Macroeconomic Activity in a Global Economy 
IVA. The Foreign Sector 
    Text:  11, 12, 13 (pp.352-376, 378-383),  18 (pp.487-489)  
    Other: Mankiw, Principles of Economics (Econ.101 text), Chapter 29. 
Apr.14 
Apr.16 
 		 Paper due (initial submission) 
Problem Set 5 due 
 
Apr.14-30 IVB. Open-Economy Macroeconomics 
    Text: 13 (pp.376-378), 15 (pp.409-417), 16 (pp.430-440)   
    Other: Mankiw, Principles of Economics (Econ.101 text), Chapter 30;  
    Krugman (1997); Pine (1998); Radelet and Sachs (1997); Fischer (1998); Obstfeld (1998)
Apr.21 
Apr.28 
Apr.30		 Apr.21: Referee reports due 
Problem Set 6 due 
Paper due (final submission)