Economic applications of selected mathematical and statistical concepts: linear models and matrix algebra; differential calculus and optimization; integral calculus and economic dynamics; probability distributions, estimation, and hypothesis testing in the analysis of economic data.
The theory of the consumer, theory of the firm, perfect and imperfect competition, welfare economics, and selected topics in general equilibrium and uncertainty.
Models of aggregate supply and demand, theories of consumption and investment, money supply and demand, inflation, rational expectations, stabilization policy, financial markets, and international finance.
Use of numerical techniques to solve economic problems. Numerical differentiation and integration numeric solutions of systems of equations, static and dynamic optimization problems including unconstrained optimization, maximum likelihood methods, general nonlinear programming methods, dynamic programming and optimal control, numerical methods for solving functional equations.
Labor supply decisions and empirical analysis for agricultural operators and other self-employed and wage-earning households; multiple job holding; resource allocation in productive households; human capital formation by households, firms, and public institutions, which includes schooling, on-the-job training, migration, health, research, raising of children, and implications for household income and welfare; applications to problems in rural areas of developing and developed countries.
Analysis of labor demand and market determination of wages and employment; analysis of distortions in labor markets due to non-competitive forces, legislation, and discrimination; wage inequality, compensation and work incentives; compensating differentials; microeconomic analysis of unemployment and job search.
Offered off campus as demand warrants. Risk management principles applied to agriculture. Sources of risk and uncertainty. Attitudes toward risk. Techniques for analyzing and controlling production, marketing, financial, legal and human risk. Designed for master of agriculture program only.
Applications of microeconomic theory and decision analysis for firms operating in U.S. and internationally. Topics include demand & supply, consumer choice theory, production and cost theory, short run and long run business decisions, input cost and human capital differences across countries, empirical estimation of demand and supply, pricing, exchange rates, government and business, market structures and strategy.
Team taught by faculty in the Department of Economics and the College of Business, this course focuses on applied economic and business tools for decision making. The topics include: Monte Carlo analysis with applications to option pricing and insurance mechanism design, portfolio analysis using existing standard spreadsheet software and add-ons, dynamic programming tools for inventory management and sequential decisions, discrete choice modeling and statistical bootstrapping, and financial performance evaluation using commercially available software.
Off campus. Offered as demand warrants. Market structure and performance in the food and agricultural sector. Vertical coordination systems and pricing systems in agriculture. Market information and price forecasting. Alternative marketing methods and strategies for major Iowa agricultural commodities including the use of futures and options markets. Designed for master of agriculture program only.
Analysis of exchange-traded and over-the-counter commodity markets, their functions and performance. Evaluation of hedging, speculation, and arbitrage strategies. Commodity transformation over space and time. Valuation of derivatives and comparison with derivatives on financial assets. Efficiency and the role of information in commodity markets. Market regulation.
Optimal taxation; excess burden; partial and general equilibrium analysis of tax incidence; social insurance; effects of taxation on labor supply and savings; economics of the health sector.
Application of economic theory to the analysis of contemporary issues in macroeconomics, monetary economics, and financial economics.
Theories of international trade and finance. Emphasis on current policy issues in international economics.
Description and analysis of economic problems of U.S. agriculture. Explanation and economic analysis of government policies and programs to develop agriculture, conserve agricultural resources, address consumer food concerns, stabilize farm prices, and raise farm incomes. The influence of macroeconomic policy, world economy, international trade, and bioenergy on U.S. agriculture.
Off campus. Offered as demand warrants. Government policy and the policy-making process as it affects food, agriculture, and trade. Description and analysis of government policies and programs designed to address production agriculture problems and consumer food concerns. Evaluation of the interaction of agriculture and world trade as affected by U.S. and foreign government policies. Designed for master of agriculture program only.
Single and multiple equation regression models; dummy explanatory variables; serial correlation; heteroskedasticity; distributed lags; qualitative dependent variables; simultaneity. Use of econometric models for tests of economic theories and forecasting.
Analysis of location choice by firms, employees, and households emphasizing the role of spatial variations in agglomeration economies, economies of scale, distance, transport, endowments, amenities, and local government. Models of land use, urban form, spatial competition, central place theory, and migration. Techniques of discrete choice analysis, statistical analysis of categorical data, urban system modeling, and interregional computable general equilibrium.
Theories of natural resource utilization and allocation. Externalities, public goods, and environmental quality. Renewable energy, biofuels, land use change and life cycle analysis of carbon, and sustainability and resource conservation. Methodologies for analyzing natural resource and environmental problems and evaluating resource policies.
Interrelationships of natural resource use and the environment. Applied welfare and benefit-cost analyses. Externalities and pollution abatement. Nonmarket valuation of resources. Property rights. Legal and social constraints. Policy approaches.
Unconstrained and equality- and inequality-constrained optimization; the Kuhn-Tucker formulation; abstract spaces; dynamic programming; dynamical systems.
Economic theory and methodology; theory of consumer behavior, theory of the competitive firm, supply and factor demand; duality relations in consumer and producer theory, welfare change measures; partial equilibrium analysis, perfect competition, monopoly; choice under uncertainty, the expected utility model, risk aversion; insurance, portfolio and production decisions under risk.
Neoclassical aggregate growth models; the overlapping generations model; endogenous growth models; equilibrium business cycle theories; equilibrium job search and matching; models of money; fiscal and monetary policy; income and wealth distribution.
General equilibrium analysis, efficiency, and welfare; market failures, externalities, and the theory of the second best; introduction to game theory; adverse selection, signaling, screening and moral hazard.
Topics will be selected from: new Keynesian approaches to business cycle theory; endogenously generated business cycles; models of credit and financial intermediation; mechanism design and time inconsistency issues; political economy models; heterogeneous-agent models with strategic interaction; path dependence, network effects, and lock-in; economies as evolving self-organizing systems.
Selected topics in microeconomic theory of current significance to the profession.
Selected topics in macroeconomic theory of current significance to the profession.
Theoretical analysis of traditional topics in industrial organization. Review of game theory. Monopoly and oligopoly theory, price discrimination, product differentiation, research and development, diffusion of innovation, network externalities, and asymmetric information.
Empirical methods in industrial organization. Measurement of market power. Discrete choice models of product differentiation. Empirical studies of price dynamics, entry, collusion, price discrimination, technology adoption, asymmetric information, and auctions.
Theoretical analysis and applications of strategic games, extensive form games, and cooperative games. Nash equilibrium, correlated equilibrium, Bayesian games, subgame perfect equilibrium, the core, evolutionary equilibrium, repeated games with finite automata, and common knowledge.
Advanced treatment of topics in agricultural economics with emphasis on optimization models. Part 1: Applied duality in production and demand models. Flexible representation of production and demand systems. Production efficiency and nonparametric analysis. Production models with risk. Part 2: The role of contracts in the organization and coordination of agricultural production. Distribution of asset ownership, allocation of risk among parties, and the structure of incentive systems. Rationale for cooperative efforts and information sharing. The role of information, insurance, and credit.
Advanced treatment of topics and models in agricultural economics with emphasis on equilibrium analysis. Part 1: Application of price theory to agricultural market analysis. Vertical market relations, product differentiation and quality in agri-food markets. Storage, futures markets and commodity prices. Part 2: Market failures and the scope for government intervention in agriculture. Applied welfare analysis of agricultural and environmental policies. Issues and models in international trade of agricultural products.
Review of decision-making under uncertainty. Portfolio Theory. Theoretical foundations of asset valuation models: capital asset pricing model (CAPM), arbitrage pricing theory (APT), representative agent models, pricing of derivative securities. Complete and incomplete asset markets, credit markets, financial intermediaries, the role of government in the financial sector. Market frictions, crashes, bubbles. Applications of asset valuation models, with emphasis on their testable implications.
Selected topics in financial economics of current significance to the profession.
Theories of international trade; welfare and distributional aspects of trade and commercial policies. Optimal trade policies in the presence of domestic distortions; strategic trade policy; international trade and economic growth.
The intertemporal approach to current account determination; non-traded goods and the real exchange rate; fiscal policy in the open economy; monetary approach to balance of payments and exchange rate determination; sticky price models of the open economy; exchange-rate based stabilizations; capital inflows; financial and balance of payments crises; international business cycles.
Probability and distribution theory for univariate and multivariate normal random variables, introduction to the theory of estimators for linear models, hypothesis testing and inference, introduction to large sample properties of estimators; derivation of common estimators and their properties for the classical and general multiple regression models, hypothesis testing, forecasting, implications of specification errors - missing data, left-out regressors, measurement error, stochastic regressors.
Identification, estimation, and evaluation of systems of simultaneous equations; qualitative choice and limited dependent variable models; introduction to time series methods and applications, including alternative variance specifications.
Econometric treatment of models arising in microeconometric applications. Methods are primarily concerned with the analysis of cross-section data. Topics may include: systems of demand equations in panel data settings, random utility models of discrete choices, production possibilities frontier estimation, and discrete/continuous models of participation and consumption.
Time-series econometric techniques and their application to macroeconomics and financial markets. Techniques may include GARCH and ARCH-M models, unit-root tests, nonlinear adjustment models, structural VARs, and cointegration tests.
Advanced treatment of issues important in econometrics. Topics chosen from asymptotic theory, nonlinear estimation, Bayesian and robust econometrics, econometric time series, limited dependent variables and censored regression models, nonparametric and semiparametric methods, bootstrapping and Monte Carlo techniques, etc.
Dynamic allocation of scarce, exhaustible, and renewable natural resources, including minerals and energy, soil, water, forests, and fish. Social versus private decisions. Market and nonmarket considerations. Technological change. Regulation. Dynamics and uncertainty.
Under the direction of the major professor, Ph.D. students write a formal research paper as an introduction to the dissertation research process.