Economics Department at Union College

Anyone who plans to write a senior thesis in the Economics Department next academic year should come to a meeting on Monday, May 2 in Olin Auditorium at 7:00 pm. This includes students who plan to write a Winter-Spring thesis.

· Fall courses

First a note on course re-numbering: The College as a whole will move to a new course numbering system as of the coming academic year. Throughout this newsletter we will use the new course numbers in bold, accompanied by old numbers in brackets.

It’s time to start thinking about pre-registration for Fall 2005. Here are some tips for course selection.

If you are a freshman, it’s time to start taking the intermediate core courses. These are Microeconomics (Eco 241 [41]), Macroeconomics (Eco 242 [42]) and Econometrics (Eco 243 [43]). Each of these courses is offered every term. Note, however, that there will be two sections of micro in the Fall, and one section each of macro and econometrics. In the Winter and Spring terms of the next academic year there will be one section each of micro, macro, and econometrics.

If you are a sophomore, finish taking the intermediate core courses as soon as possible. It’s time to make the transition to three-hundred level courses [old three-digit courses]. Several three-hundred level courses appropriate for juniors are being offered in the fall: Eco 339 [139], Public Finance; Eco 355 [151], Monetary Economics; and Eco 383 [163], Seminar in International Finance.

If you are a junior, be sure that you go to the meeting on May 2 (7:00 pm, Olin Auditorium), and that you sign up for senior thesis! If you are a Managerial Economics major, you must take Eco 445 [145], Managerial Economics, in the fall. This course is not offered any other term. We are also offering other upper-level courses this fall: Public Finance, Monetary Economics and Seminar in International Finance.

If you are a senior, we wish you all the best in your future endeavors. It has been a pleasure having you. Please make sure to stay in touch!

· Winter and Spring courses

Here is a preview of planned Winter and Spring (2006) courses. These are in addition to our regular offerings of Introductory, Micro, Macro, and Econometrics:

In the Winter we plan to offer Financial Markets, Mind of the Entrepreneur, Economics Internships, E-Commerce Economics, Introduction to Financial Analysis, International Economics, and The Income Tax: Policy and Practice. In the Spring term our planned offerings are: Environmental and Natural Resource Economics, Comparative Economics, Sports Economics, Efficient Management of Technology, Contemporary Problems in Macroeconomics, Seminar in Econometrics, Seminar in Public Policy, and Seminar in Labor.

►PLEASE CONSULT YOUR ADVISOR BEFORE REGISTERING FOR COURSES.

Math prerequisites for Eco 241 [41] and 242 [42]

The calculus prerequisite for ECO 241 and 242 may be satisfied by Math 110 [10], 101 [11B], 113 [13], or an AP calculus score of 3 or higher on either the AB or the BC exam. Math 101 [11B] and 113 [13] may be taken concurrently with Eco 241 or 242.

Professor Dvorak's Sabbatical Update

In the fall of 2004 I was on junior sabbatical leave. I spent the term working on my research on financial integration in Europe. This project is supported by a 10,000 Euro fellowship grant from the European Central Bank (ECB). The project was initiated in February 2004 and half of the grant was conditional on the Bank's acceptance of the completed paper. In March 2005 the ECB accepted my paper, which will now be published in the ECB’s working paper series. The ECB is interested in the effects of financial integration because the Euro is meant to facilitate financial integration. In fact, greater financial integration within Europe was one of the main reasons for the introduction of Euro. Financial integration is expected to lead to both a lower cost capital and its more efficient allocation. These factors should lead to a higher investment and faster economic growth. Whether this is happening in Europe and in particular in the 10 new EU member countries is the subject of my ongoing research.

Tomas Dvorak

Course Advertisement:

In 2001, a bottle of Coke in Frankfurt, Germany would have cost you about 80 cents. If you plan to buy that same bottle in Frankfurt this summer, be prepared to pay more than to $1.30. Why? It isn't German inflation, nor is it U.S. inflation. It is the nearly 40% plunge in the value of the Dollar against the Euro! Why do exchange rates fluctuate so much? What are the consequences of this for the U.S. economy? Is the U.S. importing too much? How does the U.S. pay for its imports? How does China keep its currency so low? If these issues interest you and you would like to know more, sign up for Seminar in International Finance offered Tuesday, Thursday 9 – 10:40.

Tomas Dvorak

Department News

Here is some news of comings and goings in the Department:

Prof. M. Fuat Sener, Economics Department

Professor M. Fuat Sener presented a paper entitled "Intellectual Property Rights and Rent Protection in a North-South Product Cycle Model" in the American Economics Association Meetings, Philadelphia, Pennsylvania, January 7-9, 2005.

He also served as an invited discussant at the conference "Globalization: Prospects and Problems" which was organized in Honor of Jagdish Bhagwati, one of the most important trade economists of the past few decades. This conference took place in Gainesville, Florida, January 28-30, 2005.

In addition, he has a paper forthcoming in the Review of Development Economics entitled "Outsourcing and Wage Inequality in a Dynamic Product Cycle Model" (co-authored with Selin Sayek). The paper investigates the implications of outsourcing for global labor markets. The setting is a dynamic model of trade with two regions: the developing countries (the South) and developed countries (the North). The results indicate that increased outsourcing from the North to the South can have an adverse effect on income inequality since it raises the wage gap between skilled and less-skilled workers within each region. On the other hand, increased outsourcing can also have a positive growth effect. As more production is outsourced to the South, the pace of product development in the North accelerates. This stimulates real wage growth and makes all workers better off. In conclusion, the authors suggest that the negative income distribution effects of outsourcing must be weighed against its positive growth effects when designing trade and labor market policies.

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Alumni Speaker Presentation

On Wednesday, April 27^th, we are delighted to present two Union alums and successful entrepreneurs, Mark Walsh ‘76 and Steve Killeen ‘84, to speak. They will address what it took for them to succeed and will also talk about “Two plus two equals Ten”, how to make tremendous profits. Mr. Walsh is a board of trustee at Union and, among other things, was one of the first stakeholders in AOL. Mr. Killeen was named President and CEO of WordlWinner in December 2002 and chairs numerous other companies. The location and time has not been finalized, but please keep apprised as the room will fill up quick!

Stern NYU Business Plan Competition

On Friday, April 29^th, a group of twelve students will have the opportunity to attend a business plan competition at NYU’s prestigious Stern Business School where second year MBAs will compete for $150,000 in cash prizes. Please e-mail me, David Stone ’06, at pianoman778@hotmail.com if you are interested in attending so that we can secure transportation and time of departure. Seating is limited to the first twelve! We may stay the weekend and book a hotel, so do not miss this opportunity.

Business Etiquette Presentation

Juanita Ecker, a “corporate Image consultant” will be on campus to present “Power, Poise and Presence – Business Etiquette 101” on May 3^rd from 4:30-6:00pm. It is being sponsored by the Student Activities Committee. The room has not been assigned yet, but it is open to junior/senior Managerial Economics students, as well as Professor Ann Anderson’s junior/senior students.

Thank you for your time and on behalf of the Entrepreneurship Club, I look forward to seeing you all at these and other upcoming events.

David Stone ‘06
VP of Communications

News from the President of the Economics Club

The Economics Club has had another active year. Club members participated in the Junior Achievement - a program that brings volunteers to teach students in kindergarten through 6th grade about business, economics, and the importance of staying in school. Junior Achievement provides volunteer role models with the lesson plans, materials, and training needed to deliver JA programs. The program ran this past winter and is currently running this spring. It has a time commitment of only 45 minutes each week. Volunteering takes place in local elementary schools. It is so much fun!

The Economics Club had its first "Pizza and Economics" discussion on Social Security Reform a few weeks ago. The event was a big success. Stay tuned for future “Food and Economics” events.

We are also planning on organizing a panel of senior economics majors who have completed their senior thesis this spring. They will be able to address questions and bestow wisdom on sophomores and juniors who are interested in the process.

Finally, the Economics Club is currently planning a trip to NYC for later this term. The events of the trip are not yet finalized; however, there will most likely be a visit to the American Museum of Financial History, among other excursions.

Dianna Crawford, President

Stephen Layton, an Managerial Economics major will be working for General Electric in their Financial Management Program.

Melissa Marra, will begin working for General Electric Energy as a member of the Financial Management Program in late July. This is a two year program where she will be moving to different GE Energy business sites located all across the country every six months.

Department of Economics

Letter from the Department Chair