Alex G. McKenna School of Business, Economics, and Government
 
Gary Quinlivan, Dean, McKenna School and Program Chairperson
Andrew R. Herr; Peter M. Hutchinson

Adjunct Faculty: David Dahlman, Kenneth Stillwell

Given a close collaboration with an excellent mathematics department at Saint Vincent College, the McKenna School’s Economics Department is nationally ranked and is known for offering one of the best Ph.D. undergraduate preparations in the United States. The curriculum of the Economics Department is designed to provide a comprehensive education in both theoretical and applied economics. The economics program seeks to provide a strong academic foundation for understanding the complexities of economic activity and decision making within both the private and public sectors and for understanding the relationship between the economy and society as a whole. It seeks to enable students to apply rigorous analysis to economic issues and problems through the use of market-oriented theoretical models, quantitative techniques, and economic reasoning.

The study of economics, as part of the liberal arts and sciences approach to learning, helps students understand one of the most fundamental facets of human life in civil society—economic activity—and helps prepare them to effectively address the socioeconomic challenges and opportunities of contemporary public life. In addition to general economic theory and analysis, the special strengths of the Department include finance (public and international), international trade, game theory, econometrics, and experimental economics. In conjunction with the Center for Political and Economic Thought, the Department also seeks to provide exceptional educational experiences in the study of contemporary public policy and major issues in public life. Through these approaches and by working closely with its students, the goal of the Department’s economics major is to help students achieve a strong academic background for successful graduate studies or professional employment. The Department of Economics awards both the Bachelor of Arts and Bachelor of Science degrees. The B.S. degree is designed for students intending to pursue graduate studies in economics, finance, or M.B.A programs with more demanding quantitative requirements. The B.A. is designed for students planning for immediate employment in business, government, or the nonprofit sector, as well as preparation for law school or other professional oriented graduate studies. For students interested in gaining a disciplined understanding of economics, courses in the department may be taken to satisfy the social science requirement of the College core. The major’s capstone requirement is a senior thesis that incorporates original research efforts. The thesis is written in conjunction with EC 480 and is taken during the senior or junior year.
 
Departmental Activities

Students are encouraged to join the staff of Center for Political and Economic Thought, which sponsors various lecture series, conferences, and publications; the Economics Club; and Mock Trial Team. The Economics Department is the Delta Sigma branch of Omicron Delta Epsilon, which is the national honor society for outstanding economics students.
 
Requirements for B.A. degree in Economics (43 credits)
 
Requirements for B.S. degree in Economics (53 credits)

Candidates for the B.S. degree who plan to pursue graduate work in economics, finance, or related disciplines are strongly encouraged to complete, at minimum, Calculus III, Differential Equations, and Linear Algebra.  Consult with a member of the departmental faculty for further assistance in planning course work. After completing this major and the college core, you will have 24 credits for electives.

Requirements for the Minor in Economics (18 credits)
 
Double major in Mathematics and Economics - B.S. degree (83 credits)

For those students who will pursue upon graduation an advanced degree (masters or Ph.D. level) in finance or economics.

Course Descriptions

EC 101 Principles of Microeconomics

The course introduces the student to economic reasoning, terminology and fundamental concepts. Emphasis is placed on individual economic units such as the household and the firm and how they affect and are affected by the various market structures existing in American capitalism. Offered every semester. Three credits.

An analysis of the functioning of the entire economy, in particular the forces that influence the level of production, unemployment, and prices. Also included are the nature and role of governmental intervention in changing these variables.  Offered every semester. Three credits.

The course provides rigorous analysis of consumer and producer behavior, market structure in both the product and resource markets, and general equilibrium theory. The course emphasizes the theoretical foundations and techniques of Neoclassical microeconomics.  Prerequisite: EC 101. Offered fall semester. Three credits.

An examination and analysis of aggregate economic relationships in the context of competing Keynesian and Classical paradigms.  The course emphasizes differences in the choice of appropriate stabilization policy on the part of government, as well as the  theoretical structures of macroeconomic models.  A brief introduction to economic growth theory is included. Prerequisite: EC 102. Offered spring semester. Three credits.

This course discusses the role of government in the allocation of resources; criteria for public expenditures, incidence and the economic effects of taxation, sources of demand for public goods, and the impact of government on the private sector. Prerequisite: EC 201. Offered in the spring of odd-numbered years. Three credits.

The course emphasizes the theory behind the international exchange of goods and services among nations of the world.  Topics include the Hecksher-Ohlin Theorem, offer curves, the influence of market impediments, the pros and cons of free trade, etc.  Prerequisite: EC 201 and MA 109 or MA 111.  Offered in the fall of odd-numbered years. Three credits.

The course covers the following topics: recent developments in international financial markets, the utilization of foreign exchange and derivative security markets, exchange rate determination, international asset portfolio theory, and financial risk management strategies. Cross-listed as BA 353. Prerequisites: EC 102. Offered fall of even-numbered years. Three credit

This course is designed as a continuation of BA 350. It is an introduction to regression and correlation analysis, multiple regression, their uses and related problems such as multicollinearity, serial correlation and heteroskedasticity. The course is balanced between theoretical development and applications. Prerequisite: MA 109 or MA 111 and BA 350 or MA 208. Offered spring semester. Three credits.

The primary goal of this course is to study the scope and methods of game theory, focusing on applications arising within the discipline of economics.  Game theory attempts to describe the strategic interaction of agents (e.g., consumers, firms, or the government) in situations where there are competing interests and/or the outcomes depend on the actions chosen by the various agents.  The course is designed to expose students to the concepts studied by game theorists as well as the set of analytical skills used in game theory.  Prerequisites: EC 201, MA 110 or MA 112.  Offered in the fall of even-numbered years.  Three credits.

This course focuses on laboratory experimentation as a research tool in applied economics, particularly in the areas of industrial organization, political economy, and game theory.  The course offers both an overview of general principles used in designing, conducting, and evaluating behavior in economic experiments and a review of current research in the field of experimental economics.  The areas of study include market behavior in alternative institutional settings, allocation decisions in settings with externalities, and individual choice with uncertainty.  Prerequisites:  EC 201 and  MA 109 or MA 111.  Offered in the fall of odd-numbered years.  Three credits.

This course offers the student an in-depth, mathematical analysis and extension of subject matter covered in EC 201 (Microeconomic Theory). Topics covered include: a multivariate economic applications (i.e. firm and consumer theory) of optimization theory with and without constraints utilizing linear algebra; FOC and SOC; Kuhn-Tucker Conditions; and consumer behavior under conditions of uncertainty. Prerequisites: EC 201, MA 110 or MA 112. Offered in the spring of even-numbered years. Three credits.

This course examines growth theory models, open economy macroeconomic models, macroeconomic models with rational expectations, dynamic modeling, and stochastic macroeconomic models. Prerequisites: EC 202, MA 110 or MA 112. The course utilizes David Romer's Advanced Macroeconomics and selected RE modeling chapters from Bennett McCallum's Monetary Economics: Theory and Policy. Offered in the spring of odd-numbered years. Three credits.

The purpose of this seminar is to produce a scholarly piece of research and writing. Prerequisites: EC 201, EC 202, EC 390, and MA 109 or MA 111. Offered spring of even-numbered years. Three credits.

May be repeated. Variable credit. 

Pass/Fail option only. Students are subject to the McKenna School’s STUDENT GUIDE TO INTERNSHIP PROCEDURES AND REQUIREMENTS. See Business Administration section of this Bulletin for a detailed description. Variable credit up to three credits.