This is Monday Wednesday s class is on the moodle site Look at it There is a quiz there do it and bring to your discussion section We will have an inclass quiz every Monday starting next week presents the eighteenth annual Philip Gamble Memorial Lecture Thomas Piketty Professor Economics the Paris School of Economics and EHESS Prize Yrj Jahnsson Award recipient given by the European Economic Association 2013 Director of the Paris School of Economics 2005 2007 Capital in the 21st Century Me Professor Gerald Friedman Office 926 Thompson W 10 30 12 30 by appt gfriedma econs umass edu You see me Monday 103 2 or Wednesday 103 3 4 5 6 I plan the course do the lecture do the video lectures write quizzes and problem sets My textbook sold cheap Saves you a lot of money 10 36 45 AM Oops I am a full professor with tenure I don t need to be here I am here because I want to I LOVE this class You guys are fun Micro is important Most micro teaching is wrong You are not in High School We treat you like you are in Grad School You are expected to learn from written and video material Watch the videos do the readings and read the online powerpoints Even when I don t finish the powerpoint you are responsible for the whole thing My high school on Long Island We are here for you Ask questions of your Teaching Assistants or of me Secret you can come to both lectures if you want Keep it secret No exams group problem sets You learn about Free Riding Maybe you learn from each other 10 36 45 AM I wrote my own book Sold at cost it saves you about 100 It has my economics Can you identify the elephant Gerald Friedman August 2014 Now in the official edition 1 0 This edition is different from earlier editions get it At Amherst Books not online available now To keep you awake I call on you And give you chocolate Even if you don t say anything 10 36 46 AM My daughters think this is unfair Younger daughter likes big lecture classes where she can concentrate without worrying about having to talk Also I have to be careful not to call on women all the time I rotate male female left rightcenter 10 36 46 AM Calling on people lets me know when I have lost you You may have better things to do than to listen to me 10 36 47 AM To get you to class I give quizzes Every class Every online lecture 30 of your final grade We drop 2 one home quiz one inclass Not all in class quizzes count I flip a coin Quizzes tell me what you have learned Quizzes make my students sad They also come to class Economics 103 Professor Friedman Fall 2008 October 6 2008 10 36 47 AM Your Name Your TA Your Section Time and ay Please write neatly Quiz Online quizzes will be on the course moodle site For your home days do the readings watch the videos review the notes and then do the quiz Print out your answers and bring to section In class quizzes count more Some are distributed at the beginning of class Some at the end They are all handed in at the end Hand them into your TA s pile If you miss quiz for a University sanctioned reason illness sports religious observance write me before the next class and I will arrange a make up What YOU Need to Know Course web site Moodle umass edu The whole course is there Syllabus reading assignments due dates videos problem sets notes 10 36 48 AM What YOU Need to Know Books The following are required and available for purchase Gerald Friedman Microeconomics Individual Choice in Communities edition 1 0 Dollars and Sense Real World Micro 21st edition 10 36 48 AM Books are at the Textbook Annex And Amherst Books in downtown Amherst across from town hall and the Black Sheep On your way go to Henion s Bakery and get a donut 10 36 48 AM If you miss a quiz Chill we drop your lowest grade If you have a University sanctioned excuse then let me know by email before the next class and I ll arrange for a make up University sanctioned excuses include religious observance medical issues sports military service The Division of Labor makes Economics a social science Two Approaches to Economics Orthodox or Neoclassical Methodological Individualism Economics as Applied Psychology Heterodox or Social Science Social Science how societies shape our economic life Assumptions Methodological Individualism Social Science Society sum of individuals Everything because individuals wanted it Individuals efficiently pursue their self interest Institutions epiphenomenon shaped by individuals Optimistic the world is good if we don t mess with it We live in the best of all possible worlds Individuals shaped by society Things are because of existing institutions Individuals perceive interests through institutions Not optimistic the world can be good if we have good institutions Examples of Root Assumptions Methodological Individualism People prior to society Genes Social Science People products of society Government Established family structures Property Gender rolls including heterosexism Social science and social facts Emile Durkheim Social Facts are things Social facts constrain individuals You are born into a world of rules and institutions Bad things happen if you break the rules The Politics of Root Assumptions Methodological Individualism Fundamentally conservative Individuals choose Society adds nothing Social Science Fundamentally liberal Choices are historical accidents Society can be productive Theory in Practice Is TV violence bad Methodological individualism Social Science People are set before they enter a society TV violence reflects peoples wishes they like to watch violence but it does not shape their predetermined values Peoples values are shaped by society TV violence encourages violence by making it appear normal and even legitimate Why do Dominicans play baseball so well Methodological individualism They are genetically better They have better climate for practicing baseball Social Science They have better institutions training players MLB teams have active recruiting and training programs Government subsidizes baseball Chicago Cubs training facility in Dominican Republic Methodological Individualism Can it Explain Differences in Behavior Why do the French drink wine but the Germans drink beer Data a table and a graph Beer France Germany French ratio Wine 41 54 57 115 8 24 08 35 227 Liters per capita per year 140 120 100 80 France Germany 60 40 20 0 Beer Per Capita Wine Per Capita A Good Wine Can methodological individualism explain differences in behavior Why do women have longer hair than men How long is yours compared to the