AREC 464
Economics of Policy Analysis

Lecture Notes
Problem Sets

Readings for Fall 2013

GROUP ASSIGNMENT (Deadlines Dec 3 & 5; 20% of final course grade)
GROUP ASSIGNMENT: List and Contacts (xls or pdf)

Agricultural Policy
Week 1
Penson, et al., Chapter 1: What is Agricultural Economics

Penson, et al., Chapter 2: The US Food and Fiber Industry

Penson, et al., Chapter 4: Consumer Equilibrium and Market Demand (just section on Consumer Surplus, pages 63–64)

Week 2
Penson et al., Chapter 5: Measurement and Interpretation of Elasticities

Penson et al., Chapter 8: Market Equilibrium and Product Price: Perfect Competition

Wright, Brian D. 1995. “Goals and Realities for Farm Policy.” In Agricultural Policy Reform in the United States. Edited by Daniel A. Sumner. Washington, DC: American Enterprise Institute. Chapter 2: 9–44.

Sumner, Daniel A. 2007. “Farm subsidy tradition and modern agricultural realities.” Agricultural Policy for the 2007 Farm Bill and Beyond, American Enterprise Institute.

Week 3
Penson, et al., Chapter 11: Government Intervention in Agriculture

Trade Policy
Week 4
Penson, et al., Chapter 16: Agriculture and International Trade

Penson, et al., Chapter 19: Agricultural Trade Policy

Krugman, P., 1993. “What do undergrads need to know about trade? American Economic Review 83 (2), 23–26.

Week 5
Sumner, Daniel A. 2007. “U.S. Farm Policy and WTO Compliance.” AEI Agricultural Policy Series: The 2007 Farm Bill and Beyond. American Enterprise Institute.

Sexton, S., Zilberman, D., Rajagopal, D., Hochman, G., Wesseler, J., & Scatasta, S. (2009). The role of biotechnology in a sustainable biofuel future. AgBioForum, 12(1), 130-140.

Penson et al., Chapter 9: Market Equilibrium and Product Price: Imperfect Competition
(just pages 155–158 on welfare implications of monopoly)

Falck-Zepeda, J. B., Traxler, G., & Nelson, R. G. (2000). Surplus distribution from the introduction of a biotechnology innovation. American Journal of Agricultural Economics, 82(2), 360–369.

Macroeconomic Policy
Week 6
Penson et al., Chapter 12: Product Markets and National Outut.

Penson, et al., Chapter 13: Macroeconomic Policy Fundamentals (pages 243-266)

Quantitative easing: QE, or not QE? An assessment of the most controversial weapon in the central banker’s armoury.”  The Economist, Jul 14th 2012

Dotsey, M. (2010). Monetary policy in a liquidity trap. Business Review, (Q2), 9–15.

Rajan. R. “Is Inflation the Answer?” Project Syndicate. Sept. 8, 2011

Meltzer, A. “When Inflation Doves Cry.” Project Syndicate. August 13, 2013.

Stiglitz, J. “Changing of the Monetary Guard.” Project Syndicate. August 5, 2013.

Week 7
Penson, et al., Chapter 13: Macroeconomic Policy Fundamentals (pages 266–275)

Penson, et al., Chapter 14: Consequences of Business Fluctuations.

Krugman, P. 2005. “Is Fiscal Policy Poised for a Comeback?” Oxford Review of Economic Policy, 21(4), 515–523.

Feldstein, M. 2009. “The Case for Fiscal Stimulus.” BusinessDay, 28 January April, p.52.

Stiglitz, Joseph E. (2010) “The Dangers of Deficit Reduction,” The Economists' Voice: Vol. 7: Iss. 1, Article 6.

Roubini, Nouriel. “How to Avoid a Double-Dip Global Recession.” Series: After the Storm. 2010-06-15. Project Syndicate, 2010.

Roubini, Nouriel. “Double-Dip Days. Series: After the Storm.” 2010-07-16. Project Syndicate, 2010.

Week 8
Akerlof, G. and P. Romer. 1993. “Looting: The Economics Underworld of Bankruptcy for Profit.” Brookings Papers on Economic Activity, September, pp. 1–60.

Taleb, N. 2009. “How Bank Bonuses Let Us All Down,” Financial Times. February 24 2009.

Johnson, S. and J. Kwak. 2010. 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown. Introduction. Vintage Books: New York.

Roubini, Nouriel “The Rising Risk of a Systemic Financial Meltdown: The Twelve Steps to Financial Disaster,” RGE Monitor. New York: Roubini Global Economics Service, February 5, 2008.

Min, David. 2011. “Why Wallison Is Wrong About the Genesis of the U.S. Housing Crisis: Responding to Wallison’s Latest Defense of His Flawed Financial Crisis Inquiry Commission Dissent,” Center for American Progress.

Krugman, P. 2009. “How did economists get it so wrong?New York Times Magazine, September 2.

Week 9
Stiglitz, J.E. “The Current Economic Crisis and Lessons for Economic Theory.” Presidential Address to the Eastern Economics Association. Eastern Economic Journal (2009) 35, 281–296.

Roubini, N.. 2011. “Guns and Butter and Low Taxes: On Deficits, Debts, Debt Ceilings and the U.S. Fiscal Mess,” Roubini Global Economics.

Skidelsky, R. “Austere Illusions.” Project Syndicate. May 21, 2013

Frankel, J. “The Flawed Origins of Expansionary Austerity.” Project Syndicate. May 20, 2013

Spence, M. “Learning about Growth from Austerity,” Project Syndicate. May 18, 2013

Regional Economic Development
Week 10
Rupasingha, A. and J.M. Patrick. 2013. Tools for Understanding Economic Change in Communities: Economic Base Analysis and Shift-Share Analysis. New Mexico State University, Cooperative Extension Circular 643A

Schaffer, W.A. (2010) “Regional Models of Income Determination: Simple Economic Base Theory.” Chapter 3 of Regional Impact Models. Web Book of Regional ScienceWest Virginia University—Regional Research Institute.

Week 11
Deller, S. C., & Williams, D. (2009). The Contribution of Agriculture to the Wisconsin Economy. University of Wisconsin. Department of Agricultural and Applied Economics Staff Paper, (541).

Deller, S., & Williams, D. (2011). The Economic Impacts of Agriculture in Wisconsin Counties. University of Wisconsin Cooperative Extension. Retrieved on April, 10, 2012.

Harris, T. & J. White. 2004. Estimated Economic Impacts of the Cattle Ranching and Farming Sector on the White Pine County Economy. Technical Report UCED 2004/05-15. University of Nevada, Reno.

Kerna, A. & Harris, T. 2009. An Input-Output Analysis of Economic Diversity in Douglas County. Technical Report. UCED 2008/09-26 University of Nevada, Reno.

Week 12
Berck, P., Costello, C., Fortmann, L., & Hoffmann, S. (2003). Poverty and employment in forest-dependent counties. Forest science, 49(5), 763–777.

Irwin, E. G., Isserman, A. M., Kilkenny, M., & Partridge, M. D. (2010). A century of research on rural development and regional issues. American Journal of Agricultural Economics, 92(2), 522–553.

Week 13
Beattie, B. 2004. “Uses and Abuses of Economic Multipliers: A Reprise.” Arizona Review 2(2):6–7, 13. Department of Agricultural and Resource Economics, University of Arizona, Tucson.

Mortensen, J. 2004 “Agriculture’s Impact on the Arizona Economy.” Arizona Review 2(2):3–5. Department of Agricultural and Resource Economics, University of Arizona, Tucson.

Douglas, A. J., & Harpman, D. A. (1995). Estimating recreation employment effects with IMPLAN for the Glen Canyon Dam region. Journal of Environmental Management, 44(3), 233-247.

Last updated November 25, 2013.
Document located at
website contact:

Readings are in pdf format and require Adobe Reader


AREC Home | About the Department | Research & Publications | Academics
Schedule of Classes | AgInfo | UAInfo