Slide 1This is MondaySlide 3Slide 4Slide 5Slide 6We are here for youSlide 8Slide 9Slide 10Slide 11Slide 12Slide 13Online quizzes will be on the course (moodle) siteIn-class quizzes count moreSlide 16Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Social science and social factsSlide 25Theory in Practice: Is TV violence bad?Why do Dominicans play baseball so well?Slide 28Data, a table, and a graphSlide 30Slide 31Slide 32Slide 33Slide 34Slide 35Slide 36Slide 37Slide 38Slide 39Slide 40Slide 41Slide 42Slide 43An institution: national borders US and MexicoSlide 45Slide 46Slide 47Slide 48Slide 49Slide 50Slide 51Slide 52Slide 53Slide 54Slide 55Slide 56Slide 57Slide 58Slide 59Slide 60Slide 61Slide 62Slide 63Slide 64Slide 65Slide 66Slide 67Slide 68Slide 69This 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 annualPhilip Gamble Memorial LectureThomas PikettyProfessor Economics, the Paris School of Economics and EHESSPrize “Yrjö Jahnsson” Award recipient given by the European Economic Association, 2013Director of the Paris School of Economics, 2005-2007Capital in the 21st CenturyThursday, October 2  5:00 pm – Lecture  Reception to followStudent Union Ballroom, Student Union Building10:36:45 AMMeProfessor Gerald Friedman Office: 926 ThompsonW 10:30-12:30 by [email protected]•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.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 SchoolWe 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 IslandWe 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.10:36:45 AMNo exams; group problem setsYou learn about “Free Riding”Maybe you learn from each other?I wrote my own bookSold at cost, it saves you about $100.It has my economics.© Gerald Friedman, August 2014Now in the official edition 1.0. This edition is different from earlier editions; get it. (At Amherst Books; not online; available now.)Can you identify the elephant!10:36:46 AMTo keep you awake, I call on you.And give you chocolate.Even if you don’t say anything.10:36:46 AMMy daughters think this is unfairYounger 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-right-center . . . )10:36:47 AMCalling 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 AMTo 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 Your Name:__________________________________________Professor Friedman Your TA:____________________________________________Fall 2008 Your Section Time and ay:_____________________________October 6, 2008 Please write neatly!QuizOnline 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.10:36:48 AMWhat YOU Need to KnowCourse web site : Moodle.umass.eduThe whole course is there.Syllabus, reading assignments, due dates, videos, problem sets, notes.10:36:48 AMWhat YOU Need to KnowBooks: The following are required and available for purchaseGerald Friedman, Microeconomics: Individual Choice in Communities (edition 1.0)Dollars and Sense: Real World Micro (21st edition)10:36:48 AMBooks are at the Textbook AnnexAnd Amherst Books in downtown Amherst, across from town hall and the Black SheepOn your way, go to Henion’s Bakery and get a donut.If you miss a quizChill: 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 scienceTwo Approaches to EconomicsOrthodox or “Neoclassical”Methodological Individualism: Economics as Applied PsychologyHeterodox or “Social Science”Social Science: how societies shape our economic lifeAssumptionsMethodological IndividualismSociety: sum of individuals.Everything because individuals wanted it.Individuals efficiently pursue their self interestInstitutions: 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.”Social ScienceIndividuals 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 AssumptionsMethodological IndividualismPeople prior to society.GenesSocial SciencePeople 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 AssumptionsMethodological IndividualismFundamentally conservative.Individuals chooseSociety adds nothingSocial ScienceFundamentally liberal. Choices