Workshop in Policy Analysis
Econ 205B (Section 1) – Spring 2010
San Jose State University
DMH 161 – M 6:30 – 9:15
Professor: Dr. Colleen
Haight
Office: DMH 219
Phone: 408-924-5422 office;
650-580-1998 cell
E-mail: colleen.haight@sjsu.edu (best way to reach me)
Office hours: MW 10:30-11:30
and M15:00-16:00 Please make an appointment
Web site: www.chaight.com
Course Description and
Objectives:
This class examines the role
of economic theory in the business environment. We will examine how economic
theory applies to the firm, and the ways in which economic policy affect firm
behavior. We will examine the foundations of prosperity utilizing the tools of
economic analysis, with a focus on the links between a prosperous society and a
value-creating firm. We will utilize a combination of texts, case studies,
experiments and lectures to illuminate the economic concepts discussed in
class. Prerequisite: ECON 205A or instructor consent.
Requirements and Grading
Policy:
Students' grades for the
course will be determined by scores as indicated below. Exams will cover both
reading assignments and additional material covered in class. Final grades will
be determined as follows:
Present
and Prepared: 30%
Weekly
Essays: 40%
Exams: 30%
Because class participation
helps enliven the course, it is greatly appreciated. Class participation will
be considered in the final grade in borderline situations. Class attendance is
not mandatory and will not directly
affect a student's grade. However, students will be held responsible for all
information presented in class, as well as the information in the readings,
presentations and quizzes. In many cases, the lectures will cover material
different from the reading, using the reading more as a point of reference from
which to depart. Students who miss lectures should bear this in mind.
Additionally, attendance will directly impact the ÒPresent and PreparedÓ
portion of the grade.
NO MAKE-UPS: Students often overcome tremendous
obstacles to complete the assignments listed above. They may, for example, hire an expensive baby-sitter,
antagonize their boss (or worse yet, their spouse), miss out on a potentially
great date, or hijack a car to get to an exam or turn in their work. I am not in a position to weigh one
personÕs obstacles relative to others.
Therefore, there are no make-up assignments, quizzes or exams.
Present and Prepared
Policy:
You are expected to be
prepared for classes in that you have critically read and thought about the
materials assigned for class.
Because of the unpredictable course of our lives, this ideal cannot
always be met. In order to not waste everyoneÕs time by calling on ill-prepared
students or waiting for volunteers, I will ask you to sign in as prepared when
you come to class. (If not prepared, you do not sign in.) By signing in, you
volunteer to participate upon request. Your Present and Prepared grade will
reflect percentage of times you made yourself available. You will be given one
Òfreebie.Ó For example, suppose there are 11 lectures where reading is assigned
specifically for class discussion. If you sign up for 9, you will receive a
grade of 90%. (You were prepared 9 of 10 graded times.) If you are prepared 11
times, you will receive extra credit. If you sign up as prepared, are called
upon, and are NOT prepared, your final class grade will be docked by one full
grade. (For example, if you have and A-, and are deceitful and are caught, your
final class grade will be a B-.)
Weekly Essays:
Students will complete a
500-1000 word essay every other week, due at the end of class, in which they do
one or more of the following:
Academic Integrity:
Your own commitment to learning,
as evidenced by your enrollment at
San JosŽ State University
and the UniversityÕs Academic Integrity
Policy requires you to be
honest in all your academic course work.
Faculty are required to
report all infractions to the Office of Judicial Affairs.
The policy on academic integrity can be
found at http://www2.sjsu.edu/senate/S04-12.pdf
SJSU Events and
Resources:
The Barstool Economists:
All econ majors are
automatically members of the Barstool Economists group they just need to
subscribe (it's free!). The
listserve provides announcements, reminders, updates, and economic
conversation. http://groups.yahoo.com/group/thebarstooleconomists/
The David S. Saurman
Provocative Lecture Series:
The Economics Department
hosts a wonderful lecture series each semester, bringing guest lecturers to our
campus who work and do research in unexpected and compelling areas. There are
usually 3 such lectures per semester. Dates and times are listed below, and
flyers are posted around DMH. Students may obtain extra credit by attending
these lectures. Generally, the Barstool Economists congregate at a local
restaurant/bar near campus after the lecture.
Furlough Days:
Due to the ongoing
California state budget crisis, faculty and staff have been furloughed 2 days
every month. Some of these days fall on class days. To ensure that the material
for the course is covered in an appropriately thorough manner, you may have
extra assignments on these days to be turned in during the subsequent class
period. Any assignments will count as part of the quiz score.
Course Outline:
Week 1 – 27 Jan:
No
Class
Week 2 – 1 Feb:
á Topic: Intro to Markets and the Business Environment
– Historical Foundations of Prosperity
á Readings:
o How the West Grew Rich, Rosenberg and Birdzell
– Introduction
á Reminder – February 5 is the last day to drop!
Week 3 – 8 Feb:
á Topic: Intro to Markets and the Business Environment
– Historical Foundations of Prosperity
á Readings:
o Gwartney and Stroup – What Everyone Should
Know about Economics and Prosperity, ÒSeven Major Sources of Economic
ProgressÓ
o Schumpeter – Capitalism, Socialism and
Democracy – Chapter 7, ÒThe Process of Creative DestructionÓ
á Reminder: February 12 is the last day to add!
Week 4 – 15 Feb:
Furlough Day
Week 5 – 22 Feb:
á Topic: Economic Thinking
á Readings:
o Whelan, Naked Economics, ÒThe Power of Markets: Who
Feeds Paris?Ó pp3-22
o Reed, ÒI, PencilÓ
Week 6 – 1 Mar:
á Topic: Economic Thinking
á Readings:
o Von Mises, Human Action, Chapter 4, pp92-98
o Sowell, Knowledge and Decisions, ÒEconomic
Trade-offsÓ, pp45-80 and ÒTrends in EconomicsÓ, pp167-182
o Gwartney and Stroup – What Everyone Should
Know about Economics and Prosperity,
ÒTen Key Elements of EconomicsÓ
o Maital, Executive Economics, pp 1-40
Week 7 – 8 Mar:
á Midterm Exam
á Topic: Entrepreneurship
á Readings:
o Jensen and Meckling, ÒThe Nature of Man,Ó Journal
of Applied Corporate Finance 7(2),
1994, pp.4-19
o Sowell, ÒConstrained and Unconstrained Visions,Ó A
Conflict of Visions, chp. 2, pp 18-39
Week 8 – 15 Mar:
á Topic: Entrepreneurship and Vision
á Readings:
o Polanyi, ÒTacit Knowing,Ó The Tacit Dimension, chp 1,
pp. 3-25
o Bricklin, ÒNatural Born Entrepreneur,Ó Harvard
Business Review, Sept 2001
o Hayek, ÒCosmos and Taxis,Ó Law Legislation and
Liberty, v.1, pp.35-42
o Hayek, ÒLaws, Commands and Order,Ó The
Constitution of Liberty, pp.148-161
Week 9 – 22 Mar:
á Topic: Vision
á Readings:
o Senge, ÒShared Vision,Ó The Fifth Discipline,
pp 205-232
o Collins and Porras, ÒBuilding the Vision,Ó Built
to Last, pp219-239
o Prahalad and Hamel, ÒThe Core Competence of the
Corporation,Ó Harvard Business Review, May 1990
o Kotter, Leading Change, Chps 1, 5, 6 –
pp3-16, 67-100
Week 10 – 29 Mar:
á No Class – Spring Break
Week 11 – 5 Apr:
á Topic: Virtue and Talents
á Readings:
o Hayek, ÒCosmos and Taxis,Ó Law Legislation and
Liberty, v.1, pp.43-54
o Hayek, ÒThe Origins of the Rules of Law,Ó The
Constitution of Liberty, pp.162-175
o Gardner, Multiple Intelligences: The Theory in
Practice, pp. 5-34
Week 12 – 12 Apr
á Midterm Exam
Week 13 – 19 Apr
á Topic: Virtue and Talents
á Readings:
o Collins, ÒFirst WhoÉThen What,Ó Good to Great,
pp. 41-64
o Collins, ÒLevel 5 Leadership,Ó Good to Great,
pp17-40
o Lorange and Nelson, ÒHow to Recognize – And
Avoid – Organizational Decline,Ó Sloan Management Review, 28 (3) 1987
o Pfeffer and Sutton, The Knowing-Doing Gap,
Chp. 1
o Janis, ÒGroupthink,Ó Psychology Today Magazine, 1971, pp. 43-46
o Kaplan and Kiron, ÒAccounting Fraud at WorldCom,Ó Harvard
Case 9-104-071
Week 14 – 26 Apr
á Topic: Decision Rights
á Readings:
o Hayek, ÒThe Use of Knowledge in Society,Ó American
Economic Review, 35(4); September,
1945, pp. 519-30
o Sowell, ÒThe Role of Knowledge,Ó Knowledge and
Decisions, ch. 1, pp.3-20
o Taylor, The Principles of Scientific Management,
ch. 1
o Maital, Executive Economics, pp. 57-64
Week 15 – 3 May
á Topic: Decision Rights and Incentives
á Readings:
o Neilson, Pasternack and Van Nuys, ÒThe
Passive-Aggressive Organization,Ó Harvard Business Review, Oct 2005, V.83(10), pp. 82-92
o Belasco and Strayer, Flight of the Buffalo,
pp247-264
o Hayek, ÒEquality, Value and Merit,Ó The
Constitution of Liberty, pp.93-99
o Maslow, A Theory of Human Motivation,Ó Motivation and
Personality, pp. 35-58
o Harper, Why Wages Rise, pp 16-19, 62-70
Week 16 – 10 May
á Topic: Incentives and Knowledge Systems
á Readings:
o Maslow, ÒNotes on Self-Esteem in the work situation,Ó
Maslow on Management
o McGregor, ÒThe Human Side of Enterprise,Ó Management
Review, Nov 1957
o Finegan, ÒPipe Dreams,Ó Inc., August 1994 pp 64-70
o Mises, ÒThe Pricing ProcessÓ Human Action, pp
327-333
o Hayek, ÒThe Creative Powers of a Free Civilization,Ó The
Constitution of Liberty, pp.22-29
o Polanyi, ÒThe Republic of Science,Ó Knowing and
Being, pp49-72
Week 17 – 17 May
á Topic: Knowledge Systems
á Readings:
o Collins and Porras, ÒTry a Lot of Stuff and Keep What
Works,Ó Built to Last, pp140-168
o Senge, ÒDoes your Organization Have a Learning
Disability?,Ó The Fifth Discipline, pp 17-26
o Hope and Fraser, ÒWho Needs Budgets?Ó, Harvard
Business Review, V.81(2) Feb 2003