Economics Option and Minor (EC)

The economics option provides students with an understanding of the basic principles underlying the functioning of economic institutions. It offers a modern quantitative approach seldom available at the undergraduate level. The emphasis on economic principles and modern methodology provides students with an excellent preparation for graduate study in economics, as well as for professional work in the fields of data science, economics, and government.

The option is highly flexible, allowing students to combine their study of economics with other fields, particularly mathematics and computer science. The core of the option consists of an economic theory component, a data analysis component, a basic math component (statistics/probability theory and linear algebra/analysis component) and an advanced theory or empirical component. Students are strongly encouraged to supplement this core with additional electives in economics, political science, and mathematics.

Expected learning outcomes from completing the economics option include:

• a proficiency in applying economic models to understand economic institutions and individual behaviors;
• a proficiency in analyzing field and experimental data to prove causal relationships between economic variables, to test economic theories, and to predict economic outcomes;
• an understanding of the role of market prices in allocating resources and affecting the distribution of wealth;
• an appreciation of strategic behavior and asymmetric information in economic and social interactions.

Note: The official source on requirements for graduation is the Caltech catalog from the year in which a student began studies at Caltech. Please see the catalog online, from this and previous years, for information regarding the applicable option requirements.

1. Ec 11 (Introduction to Economics).
2. Econometrics: Ec 122 (Econometrics).
3. Statistics/Probability Theory: Ma 3 (Introduction to Probability and Statistics).
4. Linear Algebra/Analysis: ACM/IDS 104 (Linear Algebra) or Ma 108a (Analysis). (Students intending to pursue graduate studies in economics are strongly encouraged to complete both Linear Algebra and Analysis.)
5. Advanced Theory/Advanced Econometrics: Ec/SS 205a and b or Ec/SS 222a & b. (Students intending to pursue graduate studies in economics are strongly encouraged to complete both sequences and take Ec/SS 205c and Ec/SS 222c.)
6. Applied data analysis: Ec/ACM/CS 112 (Bayesian Statistics) or BEM 106 (Data science in Economics) or IDS/Ec/PS 126 (Applied Data Analysis).
7. 54 additional units of advanced economics and social science courses. (Courses that are used to fulfill the Institute advanced social science requirement [courses numbered 100 and above] will also count toward this requirement.) Students may also take classes from the following list in partial fulfillment of this requirement: any BEM course except BEM 102 and ACM/EE/IDS 116.
8. 36 additional units of advanced science, social science, mathematics, and engineering courses. The requirement cannot be satisfied by any course with a number less than 100 except Ec 97 (Undergraduate Research) and Ec 98 (Senior Research and Thesis). The credits from Ec 97 and Ec 98 may be applied toward this requirement for up to 18 units.
9. Passing grades must be earned in a total of 486 units, including all courses used to satisfy the above requirements.
10. Writing/oral presentation courses: a scientific writing requirement course, and a three-unit course in oral communication, offered by any division (some options combine these two requirements into one course, that can be taken to satisfy this requirement), or En/Wr 84. The course used to satisfy this requirement must be taken on grades.

¹ See option requirements 5 and 7.

The economics minor is intended to supplement one of Caltech’s undergraduate degrees. It is designed for students who wish to broaden their knowledge beyond their major to include economics. Students completing the mathematics minor requirements will have the phrase “minor in economics” added to their transcripts.

1. Ec 11 (Introduction to Economics)
2. Econometrics: Ec 122 (Econometrics)
3. Statistics/Probability Theory: Ma 3 (Introduction to Probability and Statistics)
4. Applied data analysis: Ec/ACM/CS 112 (Bayesian Statistics) or BEM 106 (Data science in Economics) or IDS/Ec/PS 126 (Applied Data Analysis)
5. 36 additional units of advanced economics and social science courses. (Courses that are used to fulfill the Institute advanced social science requirement [courses numbered 100 and above] will also count toward this requirement.) Students may also take classes from the following list in partial fulfillment of this requirement: any BEM course except BEM 102 and ACM/EE/IDS 116.

Courses taken as part of the economics minor are counted toward the total 486 units needed for Institute graduation requirements. To enroll in the program, the student should meet and discuss their plans with the option representative. In general, approval is contingent on good academic performance by the student and demonstrated ability for handling the heavier course load.

Courses that are used to satisfy the Economics minor requirements cannot be used to satisfy the course requirements in another major.