Economics 639
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Economics 639

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COURSE CONTENT Analysis of demand with emphasis on the theory of consumption decisions, the development and estimation of models, and the assessment and interpretation of empirical results. Topics will include the following. Demand system specification. Duality and flexible functional forms. Separability and aggregation. Dynamic demand models. Household consumption models, demographics, and equivalent scales. Cost-of-living indices and standard of living measurement. Quality of goods. Empirical applications with emphasis on food demand. GRADES: 40 % term paper, 60 % final exam. ORGANIZATION We have chosen to extend each lecture’s time by 15 minutes so that we can finish classes before Thanksgiving. Moschini will teach the first half of the course (August 21 – October 4) and Jensen will teach the second half (October 9 – November 15). Students must choose a topic for their term paper as early as possible, in consultation with the instructors. A one-page term paper proposal is due by Wednesday, November 29. The final exam will take place at a mutually agreed time in the week of December 4-8. The term paper is due by noon on Friday, December 22. TEXTBOOKS Deaton, A., and Muellbauer, J. Economics and Consumer Behavior. Cambridge: Cambridge University Press, 1980. Pollak, R.A., and Wales, T.J. Demand System Specification & Estimation. Oxford University Press, 1992. READINGS: Detailed reading lists will be provided during the course. WEBSITE: http://www.econ.iastate.edu/classes/econ639/index.htm

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Reading List – Part II (Instructor: Helen Jensen)                                    (PDF file)

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