Econ 370: Comparative Capitalism and Economic Transitions
Fall 2010
MWF
Instructor: Sonya K. Huffman Office hours:
368D
Heady Hall
Monday,
Wednesday
294-4299 by appointment
Webpage: http://www2.econ.iastate.edu/classes/econ370/shuffman.
Text
(required): Gregory/Stuart, Comparing Economic Systems
in the Twenty-First Century, 7th ed., Houghton
Mifflin, 2004.
Course objective: To provide the basic characteristics of economic systems and complete understanding of the role of economic institutions underlying the existing capitalist system and the creation of institutions in transition economies. Review of economic systems in theory—capitalism, planned socialism and market socialism; different economic systems in practice, interrelationships and performance among economic systems; includes examination of recent experiences of Eastern European countries, the former Soviet Union, China, the European Union, the United States and Japan.
Examinations: There will be two midterm exams and one final exam. Examinations will include short-answer essay questions. Questions will emphasize material covered in class but will also cover text reading assignments. All exams are required for all class members. No make up exams will be offered.
Term Paper and Its Presentation: You must submit one term paper that should analyze a specific change or economic reform in a selected capitalist country or socialist economy in transition. Explain the nature of the reform, why it is needed and evaluate the effects of its implementation. The paper need not exceed 7 typed, double-spaced pages. The outline of the paper should be submitted by October 25 in duplicate. Oral presentations take place during the last two weeks. The paper is due no later than December 10. Attach an approved copy of your outline to your paper.
Grading: Examinations (3) 25% each (100 points each)
Paper and Class Presentation 25% (100 points)
Final course grade will be based on the sum of your numerical scores for the examinations, the term paper and its presentation. Class attendance and participation will be considered and can affect borderline grades. A term paper must be submitted and presented to receive a passing grade.
Class attendance: Attendance is required. Non-attendance will result in dismissal from the course and a failing grade.
Special needs/ Disabilities: Please address any special needs or special accommodations with me at the beginning of the semester or as soon as you become aware. Those seeking accommodations based on disabilities should obtain a Student Academic Accommodation Request (SAAR) form from the Student Disability Resources (SDR) office (phone 515-294-7220). SDR is located in Room 1076 of the Student Services Building.
Course Outline and Reading Assignments
Introduction: economic systems: issues, definitions and comparisons.
Text, Chapter 1-4
S. Djankov, E. Glaeser, R. La Porta, F. Lopez-de-Silanes and A. Shleifer, “The New Comparative Economics”, Journal of Comparative Economics 2003, 31(4): 595-619.
Economic Systems in Theory:
Theory of capitalism
Theory of planned socialism
Theory of market socialism
Text, Chapters 5-7
***Exam 1—September 20 (tentative)***
Economic Systems in Practice:
The Anglo-Saxon Model
The European Model
The Asian Model
The Soviet Model: Planned Socialism in Practice
China and Market Socialism?
Performance and Decline of the Command System
Text, Chapters 8-13.
Akerlof G. and R. Shiller, “Good Government and Animal Spirits.” The Wall Street Journal 4/23/09.
Krauss E., "Political Economy:
Policymaking and Industrial Policy in Japan,"
Political Science and Politics 1992, 25(1): 44-57..
Heckman J., “China’s Investment in Human Capital,” Economic Development and Cultural Change 2003, 51(4): 795-804.
***Exam 2—October 25
(tentative)***
Introduction to Transition; Transition Recession and Transition Models.
Text, Chapters 14-16.
Roland G., “The Political Economy of Transition,” Journal of Economic Perspectives 2002, 16(1): 29-50.
Blanchard, O. and M. Kremer, "Disorganization." Quarterly Journal of Economics 1997, 112(3):1091-1126.
Transition in
Practice: Privatization, Fiscal and
Monetary Policy, International Trade, and Safety Net.
Text, Chapters 17-20.
IMF World Economic Outlook, "Transition: Experience and
Policy Issues," 2000.
Aghion P. and O. Blanchard, "On the Speed of Transition," NBER Paper 1994.
Brada J., "Privatization in Transition-Or is it?" The Journal of Economic Perspectives 1996/10.
Bonin J. and P. Wachtel, “Financial Sector Development in Transition Economies: Lessons from the First Decade,” Financial Markets, Institutions & Instruments 2003, 12:1-66.
Brainerd, E. "Winners and Losers in Russia's Economic Transformation," American Economic Review 1998, 88:1094-1116.
Fleisher B, K. Sabirianova and X. Wang, “Returns to Skills and the Speed of Reforms: Evidence from Central and Eastern Europe, China, and Russia,” Journal of Comparative Economics 2005, 33: 351-370.
Orazem, P. and M. Vodopivec, “Value of Human Capital in Transition to Market: Evidence from Slovenia,” European Economic Review 1997, 41:893-903.
Huffman, S.K. and S.R. Johnson, “Impacts of Economic Reform in Poland: Incidence and Welfare Changes within a Consistent Framework.” The Review of Economics and Statistics 2004, 86(2):626-636.
***Final Exam—final exam period ***