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SUNY-STONY BROOK. ECONOMICS DEPARTMENT

Economics 323: Applied Microeconomics

Spring 2021. Mondays and Wednesdays 2:40pm to 4:00pm

Online Synchronous

Professor Hugo Benítez-Silva

As you know, due to the pandemic caused by the COVID-19, our classes will be online using the Zoom Video Conferencing system to be able to provide the instruction in a synchronous way, meaning live. You will soon receive a link to join the class but the Meeting ID and Passcode for the classes are included here.

The major focus of this course is the connection between economic theory and its applications, with a special emphasis in the use of econometric techniques. The class will use real life examples where the use of computer software, and in some cases the internet allows us to better understand a problem, analyze a question, or find an answer. We will make considerable use of computers to learn about financial and business decisions, economic models, and econometric methodology. Models of inter-temporal choice, investment, investment under uncertainty, migration, retirement, economics of regulation, education, and financial options will be explored with real examples, and many times with real data, and econometric tools. The focus of this course will be necessarily quantitative and given the requirements for the course a good knowledge of microeconomics, some math, and some statistics/econometrics, will be expected from the students. Students will be expected to consult many sources and think analytically in problems sets, exams, and in the class. Participation from students will be a key to the success of this class.

Prerequisites and Co-requisites: C or higher in Eco 303 (req.), and C or higher in Eco 320 (req.). A C or higher in AMS 310 (req.) would be accepted in lieu of the Eco 320 requirement. Eco 321 (advisory co-req).

You will receive a permanent link for the class meetings, but you can also connect with the Meeting ID: 933 6521 7190 and Passcode: 629883.

Office and Office Hours: My office is located in SBS S-649 (might be there at some point during the semester but is unclear when). Phone 2-7551. e-mail: [email protected]. Office Hours will be Tuesdays and Thursdays from 10:00 am to 11:30am, and by appointment.

Office hours will also be through Zoom, you will receive a separate Zoom link for the office hours, but you can access them through this ID and password, notice that this is different from the class information: Meeting ID: 977 7263 7552; Passcode: 984963.

Recommended textbooks: The material covered in this class draws from several subfields in economics. We will use chapters from a number of books, which should be available, or will be made available to you.

• Intermediate Microeconomics, by Hal R. Varian. Fifth Edition or above (right now in its 9th edition). W.W. Norton.

• Economic Statistics and Econometrics, by Thad W. Mirer. Third Edition or above. Prentice Hall.

• Fundamentals of Corporate Finance, by Richard A. Brealey, Stewart C. Myers, and Alan J. Marcus. Fifth Edition or above. Mc Graw-Hill Irvin.

• Modern Labor Economics, by Ronald G. Ehrenberg and Robert S. Smith. Eight Edition or above. Addison Wesley Longman.

Recitations: Tuesdays from 11:30am to 12:25pm (R1) or from 1:15pm to 2:10pm (R2), depending on your group. Recitations will also be held Online. The teaching assistant is Takahiro Moriya, he will set up his office hours. Recitations start the second week of classes. Recitations will be through the Zoom video conferencing system in the same time slots, and office hours by the Graduate TA as well. Information about those meetings will be distributed through Blackboard.

Grading:

• There will be n problem set assignments, worth 20% of the final grade, only the best n-1 grades will be counted, many of them will involve using a computer.

• Active class participation will count for 10% of the grade. This is not a freebie, attendance is only part of it. I expect in this part of the grade even more variability than in the others.

• Two midterm exams, which will count 15% of the grade each, will be via Zoom (more below).

• Students can choose to write a paper for the class that will count 15% of their grade, with the final exam counting the remaining 25% of the grade. If the paper option is not taken the final exam will count for 40% of the grade. Those that choose the paper option will have to submit a paper proposal by early to mid-March. The paper will be due the last day of scheduled classes. Details on dates and the paper are below.

• Working in groups is encouraged, but assignments should be turn in as an individual.

Submission of Problem Sets: you need to submit the Problem Sets as a pdf document by sending them to the following email: [email protected]

Technology requirements for the classes, recitations, and Exams: You need to be able to connect at the class and recitation times through Zoom and have access to audio and a camera so I can see you. The latter is particularly important for the midterm and final exams, which I will proctor along with the TA through Zoom. If your camera does not work during an exam or we are not able to monitor your behavior the exam will be considered void and the final exam will count for a higher percentage of the final grade. For example, if for any reason during the first (or second) midterm your camera does not work, the final exam automatically will be worth 15 percentage points more (either 40% or 55% depending on whether you write a paper for the class or you don’t). If that were to happen in both midterms the final would then be worth 30 percentage points more (either 55% or 70% depending on whether you write a paper for the class or you don’t). If the camera is a problem in the final exam it will be considered that you got a zero in the exam.

During regular classes and recitations, the use of the camera will not be mandatory, but it is highly encouraged to provide a more engaging and better class experience.

You will need a fairly a good quality data plan, and Wi-Fi is highly recommended to avoid running out of data quickly.

The exams will not require calculation beyond what can be accomplished on a basic calculator. Therefore, graphing calculators or other programmable advanced devices will not be allowed. If you have any questions about your calculator contact me before the exams.

You will complete the exam either on the computer or by hand, and you will then have to scan the document into a pdf and send it to the same email address as the problem sets: [email protected]

The Zoom video conferencing system allows us to record the lectures for you to view them later, but this technology might encounter glitches as literally hundreds of thousands of people are likely to connect at once throughout the World. This means you have to be prepared to be quite patient with this technology.

Important Dates

• Monday February 1: First day of classes

• Tuesday February 9th: First Recitations meet.

• Monday March 8th: First Midterm Exam.

• Wednesday March 17th: Paper proposals are due by 5pm. See details below.

• Wednesday April 14th: Second Midterm Exam.

• Wednesday May 5th: End of semester assignment and papers are due by 5pm. Last Day of classes.

• Final Exam: Thursday May 13th, 2021 from 11:15 to 1:45pm via Zoom.

Meeting ID: 978 5444 2600

Passcode: 392061

Paper proposals are due March 17 th, 2021. They have to be no longer than 3 double-spaced letter size typed pages. They can be in any topic in economics but they have to propose the use of real data. Electronic submission will be accepted in Word and pdf formats. Those who do not submit a proposal cannot write papers for this class and the final exam will count 40% of their grade automatically. I will distribute my comments on each proposal by Friday March 26 th, students are free to decide not to write a paper if given my reaction to the proposal they think they are not likely to write a good enough paper. A student who submitted a proposal can decide not to write the paper up to the last minute before 5pm on May 5 th, 2021.

As mentioned, papers are due on the last day of classes. The maximum permitted length of the paper is 15 pages, including graphs, tables, bibliography and notes. The paper has to use a minimum of 11pt fonts (except in graphs and tables) and 1.5 line spacing. Again, electronic submissions are permitted. The paper can be used in other classes if the other professor approves it, and potentially can be used as a Senior Essay or even Honor Thesis.

Cheating, copying, plagiarism, and other deceiving techniques and/or attitudes will not be tolerated under any circumstance, meaning that the given individual(s) will see his or her case(s) presented to the appropriate administration official and the harshest possible punishment inflicted if found guilty, including dismissal from the University. However, working with your classmates in problem sets is encouraged, and in some cases required, but in individual assignments make your problem set your own.

This class should be fun, enjoy it, study hard, think harder, read the class notes, read the material distributed...and the newspapers, magazines, etc.

Students who require assistance during emergency evacuation are encouraged to discuss their needs with their professors and Student Accessibility Support Center. For procedures and information go to the following website: https://ehs.stonybrook.edu/programs/fire-safety/emergency-evacuation/evacuation-guide-people-physical-disabilities

Student Accessibility Support Center Statement

If you have a physical, psychological, medical, or learning disability that may impact your course work, please contact the Student Accessibility Support Center, 128 ECC Building, (631) 632-6748, or via e-mail at: [email protected]. They will determine with you what accommodations are necessary and appropriate. All information and documentation is confidential.

Academic Integrity Statement

Each student must pursue his or her academic goals honestly and be personally accountable for all submitted work. Representing another person's work as your own is always wrong. Faculty is required to report any suspected instances of academic dishonesty to the Academic Judiciary. Faculty in the Health Sciences Center (School of Health Technology & Management, Nursing, Social Welfare, Dental Medicine) and School of Medicine are required to follow their school-specific procedures. For more comprehensive information on academic integrity, including categories of academic dishonesty please refer to the academic judiciary website at http://www.stonybrook.edu/commcms/academic_integrity/index.html

Critical Incident Management

Stony Brook University expects students to respect the rights, privileges, and property of other people. Faculty are required to report to the Office of University Community Standards any disruptive behavior that interrupts their ability to teach, compromises the safety of the learning environment, or inhibits students' ability to learn. Faculty in the HSC Schools and the School of Medicine are required to follow their school-specific procedures. Further information about most academic matters can be found in the Undergraduate Bulletin, the Undergraduate Class Schedule, and the Faculty-Employee Handbook.

▪ To access mental health services, call Counseling and Psychological Services at 631-632- 6720; Counselors are available to speak with 24/7.

▪ For updated information on the Academic Success and Tutoring Center please check www.stonybrook.edu/tutoring for the most up-to-date information.

▪ For IT Support: Students can visit the Keep Learning website at https://sites.google.com/stonybrook.edu/keeplearning for information on the tools you need for alternative and online learning. Need help? Report technical issues at https://it.stonybrook.edu/services/itsm or call 631-632-2358.

▪ For information on Library services and resources please visit the Continuity of Library Operations guide.

▪ I for any reason you cannot reach me by any standard means during the scheduled times of the class, please email [email protected].

Topics we will be covering

1. Applied Economic Theory: Beyond Intermediate Microeconomics