MAS 6V06 - 002 SPECIAL TOPICS IN MARKET-BASED ECONOMICS

Spring 2010, Jan. 11 – May 3, 2010

PETER LEWIN

Professor Contact Information

Professor Peter Lewin

Office Phone 972-883-2729

Email Address plewin@utdallas.edu

Web page http://www.utdallas.edu/~plewin/

Office Location SOM 3.223, UT Dallas

Mailing Address P.O. Box 830688, SM 31, Richardson, TX 75083-0688

Online Office Hours You can contact me anytime by phone or email.

Course Description

market-based economics: An understanding of the dynamics of markets is more necessary than ever, especially for business students. In each generation of students there is a need to revisit established authorities and refresh our understanding of the importance of market-based institutions.

This course aims to foster an appreciation of the way in which markets can be harnessed to enrich individuals, corporations and societies. It builds on an understanding of neoclassical economics and applies it to a dynamic world using a process approach that originated with Carl Menger (deriving from Adam Smith) through to Friederich Hayek and beyond. Such an approach is particularly appropriate for our rapidly changing dynamic economic environment.

A reading selection with discussion questions will be provided for each session. Students should come prepared to discuss these. Grades will be based on participation and on a short term paper.

Course Outline

Week	Topic
January 15, 2010	How are history, philosophy, politics, sociology and economics related? · Schools of thought – why bother about the history of ideas? · The subject matter of economics – choice or exchange – the importance of coordination (Buchanan) · Equilibrium in economics (Lewin) · Expectations (Lachmann 1)and Knowledge (Hayek) · The importance of Institutions (Lachmann 2) · Theory and History – methodological dualism (Politics and Sociology) (Mises)
January 22, 2010	The wealth of nations and the transition from poverty · The Division of Labor and the Invisible Hand (Smith) · Prosperity and Economic Freedom (Friedman) · The meaning of Freedom · Freedom and Property (Rothbard, Alchian) · The role of technological change
January 29, 2010	Continued from previous week
February 5, 2010	Snow Day
February 12, 2010	What is Capitalism? What is it not? Does it matter? · Capitalism as a social system in history – the role of evolution(Hayek) · Capitalism and the state (Leeson) · The ‘mixed’ economy (Littlechild, Ikeda)
February 19, 2010	Classical Capitalism and the Defense of Laissez Faire · The emergence of laissez faire in England and France · Industrial revolution and empire · Theoretical revolution and neoclassicism
February 26, 2010	The critics of Capitalism – the Socialist Calculation Debate · Socialism ascendant (Mises) · Hayek and the critics – calculation and knowledge (Kirzner, Boettke) – knowledge problems and incentive problems · War and the Road to Serfdom · Socialism and interventionism
March 5, 2010	Ricardian, Austrian and Neoclassical methods and how they differ – the nature of the market · Ricardo, Marx and the Labor theory of value · The marginalist revolution · Menger and the subjectivism of value – opportunity cost (Buchanan and the LSE) · The unconscious birth of the Austrian school – the Methodenstreit (Background) The development of Market-Process economics (from Menger to Kirzner) · Menger · Böhm-Bawerk, Wieser, the Others in Vienna · Mises – money, method, and human action · Hayek – between instinct and reason · Kirzner – the entrepreneur · Lachmann and the subjectivism of expectations · Rothbard – passionate radical · Machlup – eclectic Austrian
March 12, 2010	The capital structure of the economy · The nature of capital (Lachmann) · Physical and Human Capital (Lewin) · Modern relevance (Lewin)
March 19, 2010	Spring Break
March 26, 2010	The entrepreneur · Schumpeter and Kirzner · Modern developments
April 2, 2010	The nature of the firm – a capital-based theory of the firm · The discovery of the firm (Coase) · Transaction Cost economics (Williamson) · The Austrian connection (Langlois) · Modern developments (Lewin) Managing in a market economy · Principals and Agents (Jensen and Meckling) · The growth of the firm (Penrose) · Helpful imperfections (Richardson) · Modern developments (Foss and Klein)
April 9, 2010	Business cycles: Monetary and Fiscal Policy · The nature of business cycles (Mises) · Monetary and Fiscal Policy · The crash of 2008 (O’Driscoll, J. Friedman)
April 16, 2010	War, Peace and Globalization · The role of war · Globalization and its critics · Economic development and investment
April 23, 2010	Capitalism and Democracy – written and unwritten constitutions · Freedom and democracy · Hayek and the liberal order
April 30, 2010	Education, Health-Care, Retirement and related concerns – markets and hierarchies · Is education a public good?All about vouchers? · Is health-care a public-good? · Retirement?

Scholastic Honesty

The University has policies and discipline procedures regarding scholastic dishonesty. Detailed information is available on the UTD Judicial Affairs web page. All students are expected to maintain a high level of responsibility with respect to academic honesty. Students who violate University rules on scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and/or dismissal from the University. Since such dishonesty harms the individual, all students and the integrity of the University, policies on scholastic dishonesty will be strictly enforced.

University Policies

Student Conduct & Discipline

The University of Texas System and The University of Texas at Dallas have rules and regulations for the orderly and efficient conduct of their business. It is the responsibility of each student and each student organization to be knowledgeable about the rules and regulations which govern student conduct and activities. General information on student conduct and discipline is contained in the UTD publication, A to Z Guide, which is provided to all registered students each academic year.

The University of Texas at Dallas administers student discipline within the procedures of recognized and established due process. Procedures are defined and described in the Rules and Regulations, Board of Regents, The University of Texas System, Part 1, Chapter VI, Section 3, and in Title V, Rules on Student Services and Activities of the university’s Handbook of Operating Procedures. Copies of these rules and regulations are available to students in the Office of the Dean of Students, where staff members are available to assist students in interpreting the rules and regulations (SU 1.602, 972/883-6391).

A student at the university neither loses the rights nor escapes the responsibilities of citizenship. He or she is expected to obey federal, state, and local laws as well as the Regents’ Rules, university regulations, and administrative rules. Students are subject to discipline for violating the standards of conduct whether such conduct takes place on or off campus, or whether civil or criminal penalties are also imposed for such conduct.

Academic Integrity

The faculty expects from its students a high level of responsibility and academic honesty. Because the value of an academic degree depends upon the absolute integrity of the work done by the student for that degree, it is imperative that a student demonstrate a high standard of individual honor in his or her scholastic work.

Scholastic dishonesty includes, but is not limited to, statements, acts or omissions related to applications for enrollment or the award of a degree, and/or the submission as one’s own work or material that is not one’s own. As a general rule, scholastic dishonesty involves one of the following acts: cheating, plagiarism, collusion and/or falsifying academic records. Students suspected of academic dishonesty are subject to disciplinary proceedings.

Plagiarism, especially from the web, from portions of papers for other classes, and from any other source is unacceptable and will be dealt with under the university’s policy on plagiarism (see general catalog for details). This course will use the resources of turnitin.com, which searches the web for possible plagiarism and is over 90% effective.

Email Use

The University of Texas at Dallas recognizes the value and efficiency of communication between faculty/staff and students through electronic mail. At the same time, email raises some issues concerning security and the identity of each individual in an email exchange. The university encourages all official student email correspondence be sent only to a student’s U.T. Dallas email address and that faculty and staff consider email from students official only if it originates from a UTD student account. This allows the university to maintain a high degree of confidence in the identity of all individual corresponding and the security of the transmitted information. UTD furnishes each student with a free email account that is to be used in all communication with university personnel. The Department of Information Resources at U.T. Dallas provides a method for students to have their U.T. Dallas mail forwarded to other accounts.

Withdrawal from Class

The administration of this institution has set deadlines for withdrawal of any college-level courses. These dates and times are published in that semester's course catalog. Administration procedures must be followed. It is the student's responsibility to handle withdrawal requirements from any class. In other words, I cannot drop or withdraw any student. You must do the proper paperwork to ensure that you will not receive a final grade of "F" in a course if you choose not to attend the class once you are enrolled.

Student Grievance Procedures

Procedures for student grievances are found in Title V, Rules on Student Services and Activities, of the university’s Handbook of Operating Procedures.

In attempting to resolve any student grievance regarding grades, evaluations, or other fulfillments of academic responsibility, it is the obligation of the student first to make a serious effort to resolve the matter with the instructor, supervisor, administrator, or committee with whom the grievance originates (hereafter called “the respondent”). Individual faculty members retain primary responsibility for assigning grades and evaluations. If the matter cannot be resolved at that level, the grievance must be submitted in writing to the respondent with a copy of the respondent’s School Dean. If the matter is not resolved by the written response provided by the respondent, the student may submit a written appeal to the School Dean. If the grievance is not resolved by the School Dean’s decision, the student may make a written appeal to the Dean of Graduate or Undergraduate Education, and the deal will appoint and convene an Academic Appeals Panel. The decision of the Academic Appeals Panel is final. The results of the academic appeals process will be distributed to all involved parties.

Copies of these rules and regulations are available to students in the Office of the Dean of Students, where staff members are available to assist students in interpreting the rules and regulations.

Incomplete Grade Policy

As per university policy, incomplete grades will be granted only for work unavoidably missed at the semester’s end and only if 70% of the course work has been completed. An incomplete grade must be resolved within eight (8) weeks from the first day of the subsequent long semester. If the required work to complete the course and to remove the incomplete grade is not submitted by the specified deadline, the incomplete grade is changed automatically to a grade of F.

Disability Services

The goal of Disability Services is to provide students with disabilities educational opportunities equal to those of their non-disabled peers. Disability Services is located in room 1.610 in the Student Union. Office hours are Monday and Thursday, 8:30 a.m. to 6:30 p.m.; Tuesday and Wednesday, 8:30 a.m. to 7:30 p.m.; and Friday, 8:30 a.m. to 5:30 p.m.

The contact information for the Office of Disability Services is:

The University of Texas at Dallas, SU 22

PO Box 830688

Richardson, Texas 75083-0688

(972) 883-2098 (voice or TTY)

Essentially, the law requires that colleges and universities make those reasonable adjustments necessary to eliminate discrimination on the basis of disability. For example, it may be necessary to remove classroom prohibitions against tape recorders or animals (in the case of dog guides) for students who are blind. Occasionally an assignment requirement may be substituted (for example, a research paper versus an oral presentation for a student who is hearing impaired). Classes enrolled students with mobility impairments may have to be rescheduled in accessible facilities. The college or university may need to provide special services such as registration, note-taking, or mobility assistance.

It is the student’s responsibility to notify his or her professors of the need for such an accommodation. Disability Services provides students with letters to present to faculty members to verify that the student has a disability and needs accommodations. Individuals requiring special accommodation should contact the professor after class or during office hours.

Religious Holy Days

The University of Texas at Dallas will excuse a student from class or other required activities for the travel to and observance of a religious holy day for a religion whose places of worship are exempt from property tax under Section 11.20, Tax Code, Texas Code Annotated.

The student is encouraged to notify the instructor or activity sponsor as soon as possible regarding the absence, preferably in advance of the assignment. The student, so excused, will be allowed to take the exam or complete the assignment within a reasonable time after the absence: a period equal to the length of the absence, up to a maximum of one week. A student who notifies the instructor and completes any missed exam or assignment may not be penalized for the absence. A student who fails to complete the exam or assignment within the prescribed period may receive a failing grade for that exam or assignment.

If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of observing a religious holy day] or if there is similar disagreement about whether the student has been given a reasonable time to complete any missed assignments or examinations, either the student or the instructor may request a ruling from the chief executive officer of the institution, or his or her designee. The chief executive officer or designee must take into account the legislative intent of TEC 51.911(b), and the student and instructor will abide by the decision of the chief executive officer or designee.

Off-Campus Instruction and Course Activities

Off-campus, out-of-state, and foreign instruction and activities are subject to state law and University policies and procedures regarding travel and risk-related activities. Information regarding these rules and regulations may be found at the website address given below. Additional information is available from the office of the school dean. (http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm)

These descriptions and timelines are subject to change at the discretion of the Professor.