Wright State University, Department of Economics,
Spring 2012, EC 319 Institutional Economics (WI)
T, R: 4:10 – 5:50, Fawcett Hall 210
Prof. Zdravka Todorova, [email protected]
Rike Hall 212-W, Office Phone: (937) 775 – 3932
Office Hours: T: 2:10 – 4; R: 2:10 – 3:00; and by appointment
READINGS
I. Books
James K. Galbraith. 2008. The Predator State. Free Press: New York. (PS)
John K. Galbraith. 2004. The Economics of Innocent Fraud: Truth in Our Times.
Houghton Mufflin, New York. (EIF)
II. Articles and Handouts on Pilot
Important course material will be posted on Pilot. You can access Pilot through WINGS.
You will need your campus ID name and password. Once you are logged in, click on the
Academics tab. For additional help, please contact the Help Desk at 775-4827.
III. The following books may be useful in assisting you with your writing assignments.
Richard Bullock. 2006. The Norton Field Guide to Writing. W. W. Norton and Company,
New York.
Gerald Graff and Cathy Birkenstein. 2006. They Say I Say – The Moves that Matter in
Academic Writing. W. W. Norton and Company, New York.
COURSE DESCRIPTION AND OBJECTIVES
Institutional economics studies issues of production, consumption, finance, and
distribution in relation to social values, culture, and ecosystems. Institutional analysis
challenges many of the standard textbook ideas concerning the economy. The objective
of this course is to expose students to Institutional economic theory and its relevance for
understanding contemporary economic issues, and to practice critical thinking, reading,
and writing. This course is a part of the Integrated Writing Program.
Wright State University’s Integrated Writing Program has three goals: a) to help students
grow as writers; b) to encourage students to use writing as a tool to discover and
communicate ideas; c) to introduce students to discipline-specific ways of writing. The
learning objectives of the program are that students will be expected to produce writing
that:
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Demonstrates their understanding of course content;
Is appropriate for the audience and purpose of a particular writing task;
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Demonstrates the degree of mastery of disciplinary writing conventions
appropriate to the course (including documentation conventions);
Shows competency in standard edited American English.
All assigned readings will be posted on Pilot. Follow meticulously the detailed class
schedule outlined in this syllabus. In order to gain an understanding of the topics, you
need to study all the assigned readings consistently. Exams are short essay questions.
The final exam is not cumulative, but of course in order to comprehend the material after
the midterm you will need a comprehension of the material from the first part of the
course. Late assignments will not be accepted. Grade scores will not be e-mailed or
communicated by phone – that is the university policy.
MODE OF INSTRUCTION: Lecture
ATTENDANCE AND PARTICIPATION
Attendance is crucial for your success in this course. I take time in preparing my lectures
so that you learn what I consider the most important basics of macroeconomics. In order
to make the most of these lectures you need to put effort and focus while in class.
Missing a class means missing participation, quizzes, and homework points, in addition
to the lecture material and discussion. I may decide to call on individuals during lectures.
In addition to attendance and discussion, participation includes your behavior in class and
your attitude towards the course work. Good attitude towards course work includes
following these rules:
- Please, do not be late for class.
- Please, inform me in advance if you know that you need to leave class early.
Leave class only if absolutely necessary.
- No lap tops or other electronic devises should be used in class. Please, turn off
your phones. Talk to me if you absolutely need to have your phone on.
- Recording is not allowed.
- Take the time to familiarize yourself well with the syllabus. After the first class,
please, do not ask redundant technical questions about issues covered by the
syllabus. If you lose your copy, download another one from Pilot.
- Follow the topics and the assigned readings outlined in the syllabus. Read the
assigned readings consistently.
- I encourage you to meet with me, but you need to demonstrate that you have
already put effort on your part. You should come to my office hours with
questions about the material only after you have read all the assigned readings
about a specific topic, and you still have difficulties. Meet me prepared with
specific questions.
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GRADING
Participation: 20 %
Includes attendance, written answers to discussion questions, and class behavior and
participation in class discussion.
Written answers to discussion questions
I will distribute discussion questions based on the assigned readings. You will need to
write short answers and submit them to me in class. Answers to discussion questions
won’t be accepted if you are not in class. Also, late answers won’t be accepted. The
format of the answers and their due dates will be announced in class.
Midterm Exam: 30 %
Essay 1000 words: 20 %
Choice 1: “What is the conflict between “making goods” and “making money” in the
capitalist economy, as envisioned by Institutionalist economists? Illustrate your
discussion with a specific example.” [hint: in order to answer the question you need to
have an understanding of the “Veblenian dichotomy”.]. In you essay make sure you
incorporate at least 3 of the assigned readings. You will need also additional
bibliography.
Choice 2: “Explain the connection between the concept of “social cost” and the two
main methods of valuation identified by Institutionalist economists. Illustrate your
discussion with a specific example.” [hint: in order to answer the question you need to
have an understanding of the “Veblenian dichotomy”.] In you essay make sure you
incorporate at least 3 of the assigned readings. You will need also additional
bibliography.
You can submit a draft. If you submit a draft, you will receive a feedback, so that you
have an opportunity to use that response to improve your writing. Keep the draft – you
need to attach it to your finalized paper and submit it once it is due.
Final Exam: 30 %; University policy prohibits the communication of grades
electronically or by phone. Check your grade thorough Wings Express. You can collect
your final exam from me during my finals week office hours – these will be announced at
the end of the quarter. Also, you can collect your finals from me during Summer B, or
Fall quarter.
Grading Scale:
A 90-100%
B 80-89%
C 70-79%
D 60-69%
F <60%
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SPECIAL ACCOMMODATIONS
If you need special accommodations for the fulfillment of class requirements, contact the
Office of Disability Services, and please let me know as soon as possible.
[email protected], Telephone: (937) 775-5680
E186 Student Union, Wright State University
ACADEMIC DISHONESTY
The university policy on academic dishonesty can be found in the student handbook
which is available on the WSU website and provides information on how to avoid
academic dishonesty. Academic dishonesty will be prosecuted in accordance with
university guidelines.
CLASS SCHEDULE
Some of the readings are available on Pilot. Others you can access through the Library’s
Electronic Journals database. Some of the sources can be accessed on the web. It is
important that you follow this schedule and consistently prepare for class by reading all
readings listed in this schedule.
T, Mar 27 Introduction to Institutional Economics
James Sturgeon. 1991. ch. 5“The Institutional Approach” in Alternative Economic
Perspectives. p. 125-33 (Pilot).
Mike Alberti. 2011. “For U.S. Universities, a Failing Grade in Economics”
http://www.remappingdebate.org/article/us-universities-failing-gradeeconomics?page=0,0
TR, Mar 29: Conventional Wisdom vs. the Real World
Galbraith 2004, EIF
PS Ch. 1 and 2
T, Apr 3: The Veblenian Dichotomy and the Business Enterprise
James Sturgeon. 1991. ch. 5“The Institutional Approach” in Alternative Economic
Perspectives. p. 133-60 (Pilot)
Tae-Hee Jo. 2011. “Heterodox Critiques of Corporate Social Responsibility”
http://mpra.ub.uni-muenchen.de/35367/
TR, Apr 5: Social Cost
William Kapp. 1950. Social Costs of Business Enterprise (Pilot).
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Timothy Wise. 2010. “The True Cost of Cheap Food - The Globalization of the Food
Market has Made Food Cheap, but Who is Benefiting?
http://www.ase.tufts.edu/gdae/Pubs/rp/TWG20ResurgenceMar10.pdf
Swaney, James. 1994. “What is Wrong with Dumping on Africa?” Journal of Economic
Issues 28 (2).
T, Apr 10: Cumulative Causation; Positive Feedback
John Rynn. “Renewable Energy: The Power of Positive Feedback Loops,” New Deal 2.0,
August 16, 2010, http://www.newdeal20.org/2010/08/16/renewable-energy-the-power-ofpositive-feedback-loops-17615/
Urban Sprawl: The Big Picture, NASA Science, Audio, http://science.nasa.gov/sciencenews/science-at-nasa/2002/11oct_sprawl/
TR, Apr 12: Resource Creation and Environment
James Peach and William Dugger. 2009. ch. 4 “Environment and Resources” from The
Economics of Abundance (Pilot).
James Sturgeon. 1991. ch. 5 “The Institutional Approach” in Alternative Economic
Perspectives. p. 140-53 (Pilot).
T, Apr 17: Consumption
James Sturgeon. 1991. ch. 5“The Institutional Approach” in Alternative Economic
Perspectives, p. 160-63 (Pilot).
Hamilton, David. 1987. “Institutional Economics and Consumption,” Journal of
Economic Issues, 21 (4): 1531-1554. Read p: 1531-1549.
Thorstein Veblen. 1989. Ch. 7 “Dress as an Expression of Pecuniary Culture” from the
Theory of the Leisure Class – Find it online.
TR, Apr 19: Public Goods and Public Spaces
John Rynn. Dems Can Learn from GOP to Build Interstate Transportation System, New
Deal 2.0, Nov. 16, 2010, http://www.newdeal20.org/2010/11/16/dems-can-learn-fromgop-to-build-interstate-transportation-systems-27218/
Hamilton, David. 1987. “Institutional Economics and Consumption,” Journal of
Economic Issues, 21 (4): 1531-1554. Read p: 1549-1554.
J. K. Galbraith.1958. “The Theory of Social Balance,” ch. XVIII from The Affluent
Society (Pilot).
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T, Apr 24: Midterm
TR, Apr 26: NO CLASS
Apr 27: Social Cost Workshop, 1:30-5:30, Millet Atrium. Visit the workshop
website: http://heterodox-economics-seminars.wikispaces.com/
T, May 1: Labor; Inequality
PS: ch 3 – 8
Robert Prasch. 2005. “The Social Cost of Labor.” Journal of Economic Issues, 39 (2):
439-445 (available also here: http://ideas.repec.org/p/mdl/mdlpap/0427.html).
TR, May 3: The Myth of Free Markets
Ch. 9 and 10
Dean Baker. 2009. Free Market Myth: Regulation is Everywhere, Let’s Choose Who
Benefits.” Boston Review, Jan/Feb 2009 (Pilot).
T, May 8: Market Solutions?
PS: Ch. 11-13
TR, May 10: Business Cycles
James Sturgeon. 1991. ch. 5“The Institutional Approach” in Alternative Economic
Perspectives. p. 160-73 (Pilot).
Keen, Steve. 2008. “Time to Read Some Minsky” (Pilot).
Wray, L. R. “The Social and Economic Importance of Full Employment,” In Introducing
Macroeconomic Analysis (ed.) H. Bougrine and M. Seccareccia. (Pilot).
T, May 15: Macroeconomic Policy
(OPTIONAL PAPER DRAFT IS DUE)
William Mitchell. 2011. “Beyond Austerity”. The Nation, March 16, 2011,
www.thenation.com.
Fullwiler, Scott and L. R. Wray. 2011. “It is Time to Reign in the FED,” Public Policy
Brief # 117, www.levy.org.
TR, May 17: NO CLASS. Come to the Seminar with Dr. Alla Semenova, “How Money
Came About: Temples, Taxes or Traders?” 6:00 pm, Discovery Room of the Student
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Union (E 163). For more information visit:
http://heterodox-economics-seminars.wikispaces.com/Seminars
T, May 22: Money
Wray, L. R. Understanding Modern Money: Clarifications and Extensions (Pilot).
TR, May 24: Financial Instability
(FINAL PAPER IS DUE.)
L.R. Wray. 2011. “Lessons We Should Have Learned from the Global Financial Crisis
but Didn’t”, Working Paper No. 681, Levy Economics Institute, www.levy.org.
T, May 29: Global Financial Crisis
Papadimitriou, Dimitri, and L. R. Wray. 2012. “Fiddling in Euroland as the Global
Meltdown Nears,” Public Policy Brief No. 122, February 2012, www.levy.org.
R, May 31: Global Financial Crisis – Continued
PS: ch. 14
Final Exam: (June 5, 4-5, same room)
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