Economics and Management

Faculty

Gregory M. Saltzman, chair and professor.
S.B., 1976, S.M., 1976, Massachusetts Institute of Technology; M.A., 1978, Ph.D., 1982, University of Wisconsin. Appointed 1986.

Vicki L. Baker, assistant professor.
B.A., 1999, Indiana University of Pennsylvania; M.B.A., 2001, Clarion University; M.S., Ph.D., 2007, Pennsylvania State University. Appointed 2007.

John B. Bedient, associate professor.
B.A., 1975, Alma College; M.B.A., 1978, Indiana University; C.P.A., 1977. Appointed 1985.

Steven W. Cerajewski, assistant professor.
A.B., 1994, Wabash College; M.B.A., J.D., 1998, Indiana University; C.P.A. Appointed 2010.

Daniel S. Christiansen, professor.
B.A., 1969, Willamette University; M.A., 1971, Ph.D., 1975, Stanford University.
Appointed 1981.

Jon A. Hooks, professor.
B.S., 1984, Cameron University; M.A., 1985, University of Texas, Dallas; M.A., 1987, Ph.D., 1989, Michigan State University; C.F.A., 2000. Appointed 1989.

Zhen Li, associate professor.
B.A., Peking University; M.A., 1999, Ph.D., 2004, Princeton University. Appointed 2004.

Kotaro Yoshida, assistant professor.
B.A., 1999, Waseda University (Japan); Ph.D., 2006, Duke University. Appointed 2006.

Introduction

The Economics and Management Department provides students with an understanding of economic and management principles that will be useful throughout their careers. We address both the immediate application of problem-solving techniques and the conceptual basis for those techniques. The department offers an eight-unit major, a ten-unit major with emphasis (emphases in accounting, economics, finance, general business, human resources, or international business and international economics), and three minors. The department also supports the Carl A. Gerstacker Institute for Business and Management and the interdepartmental majors in mathematics/economics, public policy and social studies.

Economics and Management Department Web site

Career Opportunities

Graduates in economics and management have professional opportunities in many aspects of business, including accounting, banking, finance, international business, human resources, marketing and sales, and retailing. The program also provides a strong background for graduate study in law, business, economics, public policy studies and related areas. Albion offers all the courses needed to meet the 150-hour requirement for becoming a certified public accountant.

Special Features

The department spans the worlds of theory and practice. We teach students how to analyze problems faced by businesses, government, or nonprofit organizations; make decisions; and lead. The department maintains a close relationship with the business world, which aids in the placement of graduates.

Departmental Policy on Advanced Placement Credit

Students who earn a 5 on the Advanced Placement (AP) exam in microeconomics will receive one unit of credit for E&M 101. Students who earn a 4 will receive one unit of credit for E&M 191. E&M 191 will not meet the E&M 101 requirement for the E&M major but will count toward the 32 units for graduation.

Students who earn a 5 on the Advanced Placement (AP) exam in macroeconomics will receive one unit of credit for E&M 102. Students who earn a 4 will receive one unit of credit for E&M 192. E&M 192 will not meet the E&M 102 requirement for the E&M major but will count toward the 32 units for graduation.

Majors and Minors

Requirements for Economics and Management Major (8 units)

• A minimum of eight units in economics and management, including 101, 102, 211, 230, 232 and at least one course at the 300-level. Unless approved by the department in advance, 230 and 232 must be taken at Albion College. The eight units used to fulfill major requirements must be taken for a numerical grade. It is recommended that all courses taken in the department by majors be taken for a numerical grade, except those offered only on a credit/no credit basis. Normally, students will enroll in 101 in either the first or second semester and 102 in the semester after 101. Economics and Management 211 is not open to first semester freshmen but is normally taken in either the second or third semester. Economics and Management 230 and 232 should be taken in the second year along with the statistics cognate requirement. It is recommended that students planning a major in economics enroll in Mathematics 125 or calculus during their first year. Seniors may be required to participate in a senior assessment exercise.
• The following cognate areas must be completed for a major:
  1. Mathematics 125 or its equivalent as demonstrated by proficiency or calculus.
  2. One statistics course from Mathematics 210, 309, or Economics and Management 235.
• In addition, it is recommended that individuals interested in graduate study in business or management take Mathematics 141 and 143. Individuals contemplating graduate study in economics should complete the mathematics/economics major.
• Because of the increased globalization of the U. S. economy, all majors are encouraged to participate in approved off-campus study programs. For a list of approved programs, consult with the Off-Campus Programs Office.

Requirements for Economics and Management Major with Emphasis (10 units)

• A minimum of 10 units in economics and management (9 for the emphasis in international business and international economics), including 101, 102, 211, 230, 232. Unless approved by the department in advance, 230 and 232 must be taken at Albion College.
• The 9-10 units used to fulfill major with emphasis requirements must be taken for a numerical grade.
• The following cognate areas must be completed for a major with emphasis: Mathematics 125 or its equivalent as demonstrated by proficiency or calculus; one statistics course from Mathematics 210, 309 or Economics and Management 235. The major with emphasis in international business and international economics requires, in addition to the preceding, completion of an off-campus study program in a foreign country or an internship in a foreign country, plus one course from the following: a modern foreign language at the 201 level or higher; A&S 238, 248, 375; Communication Studies 313; History 103, 111, 142, 217, 218, 263, 264, 308, 309, 313, 382, 385, 390; International Studies 130, 264, 300; Modern Languages and Cultures 105; Political Science 202, 305, 336, 338, 352; Religious Studies 102, 104, 204, 211, 212.
• A focused selection of courses chosen from among the emphases listed below.
  Emphasis in accounting
  212, 311, 312, plus two units selected from the following: 341, 342, 348, 383, 384, 385.
  Emphasis in economics
  Five units selected from the following: 273, 322, 323, 326, 331, 354, 364, 365, 366, 368, 375, 379, 380.
  Emphasis in finance
  348, 368, plus three units selected from the following, including at least one of 311 or 312; 311, 312, 331, 344, 365.
  Emphasis in general business
  212, 259, 336, 348, plus one unit selected from the following: 350, 355, 357, 359, 376, 382.
  Emphasis in human resources
  259, 354, 355, Psychology 101, plus one unit selected from the following: 305, 353, 376, Psychology 246.
  Emphasis in international business and international economics
  Two units selected from 362, 363, 364, 365, 366, plus one unit selected from the following: 212, 259, 331, 336, 348, 359, 368, 376.
• A student may declare only one economics and management major with emphasis, even if the student completes the requirements for more than one emphasis.

Information on Minors

• The minor in economics, the minor in management, and the minor in management--Gerstacker track are not open to economics and management majors.
• Students may not choose more than one minor in the Economics and Management Department.
• All courses for the minor must be taken for a numerical grade, except those offered only on a credit/no credit basis.

Requirements for Minor in Economics

• Five units in economics and management, including: 101 and either 230 or 232, plus three from 102, 230, 232, 235, 273, 322, 323, 326, 331, 344, 354, 363, 364, 365, 366, 368, 375, 379, 380 and (with approval of the department chair) 389.

Requirements for Minor in Management

• Five units in economics and management, including: 101, 211 and either 259 or 359, plus two additional units from 212, 259, 305, 311, 312, 336, 341, 342, 344, 348, 350, 353, 355, 357, 359, 368, 376, 382, and (with approval of the department chair) 389.

Economics and Management Courses in Interdepartmental Majors

Three interdepartmental majors require courses in economics. The mathematics/economics major, which requires six courses in economics, prepares students for actuarial science, operations research or graduate study in economics. The public policy major, which requires three courses in economics, focuses on government decision-making. The social studies major with elementary or secondary education certification, which requires two courses in economics, is aimed at students who seek to become K-12 teachers.

Economics and Management Courses

The following courses are offered without specific course prerequisites for interested liberal arts students: Principles of Microeconomics (101); Financial Accounting (211); Managing People and Organizations (259); Women in Business and Leadership (305); Issues in Modern Political Economy (322); Marketing Principles and Decision Making (336); Business Law (350); Labor Law, Unions, and Management (353); Human Resource Management (355); Management Consulting (358); Management (359); International Management (362); and Negotiation and Dispute Resolution (376).

101 Principles of Microeconomics (1)
Prerequisite: High school algebra.
Introduction to the principles of decision-making by households and businesses. Supply and demand; the impact of prices and costs on market behavior; and public policies related to taxation, the environment, the labor market, and international trade. Staff.

101H Principles of Microeconomics (1)
Prerequisite: High school algebra.
Honors equivalent of E&M 101 for students in the Carl A. Gerstacker Institute for Business and Management, for students pursuing the mathematics and economics major, and for others by invitation. Staff.

102 The Economy and Financial Markets (1)
Prerequisite: E&M 101 or permission of instructor.
Introduction to the macroeconomy and macroeconomic models with special emphasis on the role of financial markets, interest rates, the Federal Reserve, monetary and fiscal policy, and money and capital markets. Staff.

102H The Economy and Financial Markets (1)
Prerequisite: E&M 101H or permission of instructor.
Honors equivalent of Economics 102 for students in the Carl A. Gerstacker Institute for Business and Management, for students pursuing the mathematics and economics major and for others by permission. Staff.

187, 188, 189 Selected Topics (1/4, 1/2, 1)
An examination of subjects or areas not included in other courses. Staff.

211 Financial Accounting (1)
Introduction to the world of business and accounting. Emphasis on understanding the concepts of net income, cash flow and financial condition. Communication of economic results through financial statements and reports. Development of analytical skills used in evaluating business success. Not open to first-year students. Bedient, Cerajewski.

212 Managerial and Cost Accounting (1)
Prerequisite: E&M 211 or permission of instructor.
Development and use of accounting information for effective managerial control and decision-making within a complex organization. Topics include cost behavior, profit planning, cost accounting (including job order, process and activity-based), just-in-time inventory control, standard costs and budgetary control. Bedient, Cerajewski.

230 Intermediate Microeconomics (1)
Prerequisites: E&M 101, Mathematics 125 or equivalent.
Theoretical analysis of consumer choice theory and demand, production and cost, the firm and market organization, distribution and general equilibrium, game theory. Christiansen.

230H Honors Intermediate Microeconomics (1)
Prerequisites: E&M 101, Mathematics 141.
A more rigorous honors version of Economics 230. For students in the Carl A. Gerstacker Institute for Business and Management, for students pursuing the mathematics and economics major, and for others by permission. Christiansen.

232 Intermediate Macroeconomics (1)
Prerequisites: E&M 101, 102, Mathematics 125 or equivalent.
The development of macroeconomic theory and its application to government policy toward unemployment, inflation and growth. Hooks, Li, Yoshida.

232H Honors Intermediate Macroeconomics (1)
Prerequisites: E&M 101, 102, Mathematics 141.
A more rigorous honors version of Economics 232. For students in the Carl A. Gerstacker Institute for Business and Management, for students pursuing the mathematics and economics major, and for others by permission. Hooks, Li, Yoshida.

235 Economic Statistics (1)
Prerequisite: Mathematics 125 or equivalent.
A first course in statistics with emphasis on regression analysis and its applications in economics and management. Not open to students who have taken Mathematics 109, 210 or 309. Christiansen.

235H Honors Economic Statistics (1)
Prerequisite: Mathematics 141.
A more rigorous honors version of Economics 235. For students in the Carl A. Gerstacker Institute for Business and Management; for others by permission. Christiansen.

259 Managing People and Organizations (1)
Prerequisite: Sophomore standing.
An introduction to organizational behavior, including analysis at the level of the individual group or team, and organization. Topics addressed included employee attitudes and job satisfaction, managerial decision making and problem solving, managing teams, conflict and negotiation, leadership, and organizational culture and design. For students in the Carl A. Gerstacker Institute for Business and Management and for others by permission. Baker.

259H Managing People and Organizations (1)
Prerequisites: Sophomore standing, admission to Carl A. Gerstacker Institute for Business and Management.
Honors equivalent of Economics 259 for students in the Carl A. Gerstacker Institute for Business and Management and for others by invitation. Baker.

273 Environmental and Natural Resource Economics (1)
Prerequisite: E&M 101.
Economic theory is used to examine environmental and natural resource problems and policies. Christiansen.

287, 288, 289 Selected Topics (1/4, 1/2, 1)
An examination of subjects or areas not included in other courses. Staff.

305 Women in Business and Leadership (1)
Prerequisite: Junior or senior standing.
Historical and contemporary perspectives on the expanding role of women in leadership positions, both in business and in other realms, such as politics. Extensive classroom discussions and use of case studies. Issues addressed include equal pay, work-family balance, the “opt-out myth,” challenges women face in various industries or occupations, and the role of corporations in hindering or supporting women’s advancement. Baker.

311 Intermediate Accounting I (1)
Prerequisite: E&M 212.
Theory and practice underlying financial accounting measurement and reporting. Provides a detailed exploration of assets and their relationship to income determination. Includes coverage of generally accepted United States accounting principles (GAAP) and international financial reporting standards (IFRS). Bedient, Cerajewski.

312 Intermediate Accounting II (1)
Prerequisite: E&M 212.
Theory and practice underlying financial accounting measurement and reporting. Provides a detailed exploration of liabilities and stockholders’ equity, and other selected topics including pensions, leases and the statement of cash flows. Includes coverage of generally accepted United States accounting principles (GAAP) and international financial reporting standards (IFRS). Usually taken after E&M 311. Bedient, Cerajewski.

322 Issues in Modern Political Economy (1)
Prerequisite: Junior or senior standing or permission of instructor.
A non-technical course on selected legal and public policy issues related to the economy. Topics vary from term to term but could include such issues as equal employment opportunity and affirmative action, the use of economic analysis in setting public policy, and government's role in health care. Not offered every year. Saltzman.

323 Government Economics and Policy (1)
Prerequisite: E&M 101.
Application of microeconomic analysis to expenditure and revenue decisions in the public sector, including rationale for government expenditures, criteria for revenue generation and the analysis of economic effects of major taxes. Not offered every year. Hooks.

326 Economic History (1)
Prerequisite: E&M 101.
An introduction to the economic histories of Western Europe and the United States. Specific topics will vary but may include: the development and implementation of different economic systems, slavery, labor markets, the industrial revolution and its effects, the Great Depression, the civil rights movement, and the establishment of the European Union. Not offered every year. Staff.

331 Money and Banking (1)
Prerequisite: E&M 101.
Focuses on the Federal Reserve and its attempts to promote maximum sustainable economic growth. Other topics include the nature of money, the determination of interest rates, the financial system and financial institution operations, the structure of the Federal Reserve and the macroeconomics of inflation and growth. Hooks, Yoshida.

336 Marketing Principles and Decision-Making (1)
Prerequisite: Junior or senior standing, or permission of instructor.
Principles of modern marketing and techniques used to make marketing-based business decisions. Emphasis is placed on setting marketing goals and devising appropriate strategies and tactics to achieve the goals. Students put theories into practice with computer simulations and electronic spreadsheet models. Bedient.

341 Federal Income Taxation (1)
Comprehensive introduction to federal income taxation, particularly as it relates to individuals and businesses. Emphasis on the recognition of opportunities for effective tax planning and management. Cerajewski.

342 Auditing (1)
Prerequisites: E&M 311 or 312.
Introduction to auditing concepts, objectives and standards; topics include professional ethics, types of audits (their purpose, scope, and methodology). EDP auditing, and statistical sampling. Reference will be made to authoritative auditing standards and pronouncements. Bedient.

343 Advanced Taxation and Corporate Transactions  (1)
Prerequisite: E&M 341. 
A continuation of Economics 341. Taxation of corporations, partnerships, estates and trusts. Tax planning and management strategy aspects of corporate formation and reorganization. Students prepare and revise legal memoranda on tax issues. Cerajewski.

344 Portfolio Theory (1)
An overview of the characteristics and analysis of individual security returns, and the theory and practice of optimally combining securities into portfolios. Examines the equilibrium pricing of securities in the context of the capital asset pricing model, and the risk/return relationship of both individual securities and portfolios, as well as the recent attack on the CAPM and the implications for efficient markets. Not offered every year. Hooks.

348 Financial Management (1)
Prerequisite: E&M 101.
A survey course covering principles of corporate financial management. Topics include working capital management, agency theory, capital budgeting, capital structure, divided policy, financial analysis and selected topics. Hooks, Yoshida.

350 Business Law (1)
Prerequisite: Junior or senior standing.
A case approach to the application of legal principles to business activity. Particular emphasis is placed upon the law of contracts, the Uniform Commercial Code, business organization, and federal regulation of the competitive process. Junior or senior standing is recommended. Garrison.

353 Labor Law, Unions and Management (1)
Prerequisite: Sophomore standing or permission of instructor.
Labor history, labor law, union-management relations, comparative labor movements. Student participation in a collective bargaining game. Not offered every year. Saltzman.

354 Labor Economics (1)
Prerequisite: E&M 101.
An investigation of labor market decisions and outcomes; topics include labor supply and demand, earnings, discrimination and unemployment. Not offered every year. Saltzman.

355 Human Resource Management (1)
Prerequisite: Junior or senior standing.
An overview of personnel management, with an emphasis on the needs of the general manager rather than the personnel specialist. Topics include employee motivation, job enrichment, labor relations, grievances and discipline, recruitment and selection, equal employment opportunity, performance appraisal, compensation and employee benefits. Baker, Saltzman.

357 Business Functions (1)
Prerequisite: Permission of instructor.
Introduction to management, finance and marketing for students in the Carl A. Gerstacker Institute for Business and Management. Bedient.

358 Management Consulting (1)
Prerequisite: Junior or senior standing. Prior courses related to management are recommended but not required. 
The role of management consultants in diagnosing organizational problems and developing action plans that can be effectively implemented. Students work on a team-based management consulting project for a community organization to gain “real world” experience and to develop interpersonal, communication and analytical skills. Teams address issues such as strategy, organizational structure, leadership development or process efficiency. Not offered every year. Baker.

359 Management (1)
Prerequisite: Junior or senior standing, or permission of instructor.
An introduction to current management theory and practice. Traditional managerial functions such as planning, organizing and controlling are studied and contrasted with newer cross-functional approaches. The course emphasis is on the building blocks of management so that these principles can be applied to a variety of organizations including educational, business and not-for-profit institutions. Baker, Bedient.

362 International Management (1)
Prerequisite: Junior or senior standing. 
Cross-cultural, ethical and social issues related to doing business abroad. Corporate strategy and structure, communication, negotiation, human resources and marketing in multinational operations. Implications of foreign assignments for career development of managers. Not offered every year. Baker.

363 The Chinese Economy (1)
Prerequisites: E&M 101, 102.
An examination of economic policy and institutions in China since 1949. Topics include the Communist economic system adopted under Mao, the transition to a more market-oriented system beginning in 1978, sustainability of rapid economic growth, the banking and financial system, foreign trade and investment, labor market reforms, the social safety net, and rural economic development. Li.

364 The Japanese Economy (1)
Prerequisites: E&M 101, 102.
An examination of macroeconomic and microeconomic policy and institutions in Japan from 1945 to the present. Topics include industrial and trade policy, economic growth, economic consequences of an aging population, government debt, lifetime employment, seniority-based wages, regional trade patterns, monetary policy, and corporate governance. Yoshida.

365 International Finance (1)
Prerequisite: E&M 232.
International macroeconomics. Particular attention is paid to the relationship among exchange rates, balance of payments, international capital flows and macroeconomic equilibrium. Eurocurrency markets and alternative international monetary systems are also examined. Li.

366 International Trade (1)
Prerequisite: E&M 230.
International microeconomics. Study of models explaining trade patterns between countries. Analysis of industry-level trade policy issues including the effects of tariffs, quotas and other restrictions; international competition among large firms; technological change; and free trade areas. Li.

368 Financial Markets (1)
Prerequisite: E&M 102.
An examination of the way in which the market transfers resources from those with a surplus to those with a deficit. Students study both the theory of efficient transfer and the financial institutions and instruments which facilitate this transfer. Topics include the analysis of equity markets, fixed income markets and derivative markets. Hooks.

375 Health Economics (1)
Prerequisite: E&M 101 or permission of instructor.
A microeconomic and institutional analysis of health care services in the U.S., with particular reference to issues of cost and access. Topics include the demand for medical care, health insurance, economic regulation of hospitals, the markets for physicians and medical education, and the political economy of health care. Not offered every year. Saltzman.

376 Negotiation and Dispute Resolution (1)
Prerequisite: Junior or senior standing, or permission of instructor.
An introductory study of the theories and concepts related to negotiation and dispute resolution developed in such fields as microeconomics, psychology and industrial relations. Includes many role-playing exercises to provide students with practice in negotiation. Saltzman.

379 Econometrics (1)
Prerequisite: One of the following: Mathematics 210, Mathematics 309, E&M 235 or E&M 235H.
An introduction to empirical work in economics and management. Topics covered include: hypothesis testing, estimation, correlation, and regression and related problems. Students use statistical software to access data sources and to write an empirical paper. Not offered every year. Staff.

380 Mathematical Economics (1)
Prerequisites: E&M 230 or 230H and at least one course in calculus.
Optimization and economic analysis, game theory and financial economics. Not offered every year. Christiansen.

382 Strategic Management (1)
Prerequisite: E&M 259 or 359, and senior standing.
Considers the roles of CEOs and other top executives using case studies. Focuses on corporate strategy formulation and implementation in terms of the competitive environment, the integration of functions within the firm, and the concerns of stakeholders inside and outside the organization. Examines ways in which firms may gain and maintain competitive advantage. Specific topics may vary in response to current events in the business world. Not offered every year. Staff.

383 Accounting Information Systems (1/2)
Prerequisite: E&M 211.
Provides a basic knowledge of the components of an accounting information system and the controls required to operate it efficiently. Students receive hands-on experience with a computerized accounting system. Bedient.

384 Governmental and Not-for-Profit Accounting (1/2)
Prerequisite: E&M 211. E&M 311 recommended.
An introduction to accounting and financial reporting for governmental entities and non-profit organizations. Covers state and local governments, colleges and 165 universities, health care entities, museums, libraries and performing arts organizations. Bedient.

387, 388, 389 Selected Topics (1/4, 1/2, 1)
An examination of subjects or areas not included in other courses. Staff.

389 Selected Topics (1)
Prerequisite: Permission of instructor.
The Economics and Management Department schedules a number of courses each semester under the flexible title "Selected Topics.'' These courses are offered to meet the evolving needs and interests of students. Examples of recent topics include: International Business and Marketing Engineering. Staff.

391, 392 Internship (1/2, 1)
Offered on a credit/no credit basis. Limited to one unit of credit in economics and management. Staff.

401, 402 Seminar E or M (1/2, 1)
Prerequisites: Junior or senior standing in economics and management and permission of the instructor.
Seminars are offered in selected areas not normally part of the regular curriculum. Staff.

411, 412 Directed Study (1/2, 1)
Prerequisites: Junior or senior standing in economics and management and permission of instructor. Staff.