Course Descriptions, 2019/20

Fall

Econ 500a. General Economic Theory: Microeconomics

The topics are consumer and firm behavior, decision making under uncertainty, competitive, oligopolistic, and monopolistic markets, general equilibrium theory and its extension to equilibria involving uncertainty and time, and overlapping generations model,

Day/Time:
Tues/Thurs 10:00-11:20
Econ 510a. General Economic Theory: Macroeconomics

Basic facts and time series for macroeconomics. Stochastic dynamic programming with applications to macroeconomics. Advanced topics in consumption. Competitive equilibrium and dynamic models, and in overlapping generation models. Stochastic growth models. Real business cycles. Fiscal policy. Asset pricing.

Instructor(s):
Day/Time:
Mon/Weds. 1:00-2:20
Econ 520a. Advanced Microeconomic Theory: I

The first half of the course provides an introduction to the classical theory of choice and delves into nonstandard preference models, including preferences for commitment, preferences for the timing of resolution of uncertainty, reference dependent preferences and time-nonseparable preferences. The second half covers topics in game theory.

Instructor(s):
Instructor(s):
E. Shmaya
Day/Time:
Thursday 5:30-8:00
Econ 522a. Microeconomic Theory Lunch

Provides a forum for advanced students to examine critically recent papers in the literature and to present their own work. Permission of the instructor is required.

Day/Time:
Tuesday 12:00 - 1:00pm
Econ 525a. Advanced Macroeconomics: I

Macroeconomics of the labor market: unemployment, wage inequality, sorting.

Day/Time:
Weds. 4:00-7:00
Econ 537a. Microeconomic Theory Workshop

This seminar will meet weekly. Presentations will be divided between research scholars and participating students. Speakers will be encouraged to spend the first half hour giving a brief history of thought on the questions they are addressing.

Day/Time:
Wednesday 2:30 - 3:50
Econ 540a. Macroeconomics Student Workshop (Macro Lunch)

A course for third and fourth year students doing research in macroeconomics to prepare their prospectuses and to present their dissertation work. Each student will be required to make at least two presentations per semester. For third year students and beyond, at least one of the presentations in the first semester should be a mock job talk.

Day/Time:
Thursday 12:00 - 1:00
Econ 542a. Macroeconomics Workshop

A forum for presentation and discussion of state-of-the-art research in macroeconomics. Presentations by research scholars and participating students of papers in closed economy and open economy macroeconomics and monetary economics.

Day/Time:
Tuesday 2:20 - 3:50
Econ 545a. Microeconomics (IDE)

The first part of the course studies optimization and programming theory, which we then apply to the theory of producer and consumer behavior. The aim is to explain the logic of the basic mathematical techniques used in microeconomics. We then turn to a partial equilibrium analysis of perfect competition and monopoly, and to the welfare properties of general equilibrium. The course concludes with a brief introduction to game theory, with applications to imperfect competition. Problem sets and two exams are required.

Instructor(s):
Day/Time:
Monday/Wednesday, 2:30-3:45
Econ 546a Growth and Macroeconomics (IDE)

Economics 335/546 will provide you with a rigorous framework for understanding the process of economic growth from a macroeconomic perspective. The main focus of the course is on the factors sustaining long-run growth. The wealth of nations is built over long stretches of time, and what matters over this horizon are the real factors of production, including labor, physical capital, technology, resources, human capital, institutions, and geography. To study these factors, we start from presenting some salient empirical facts about growth and income distribution across countries. Then, to understand these facts, we consider economic theories of physical and human capital accumulation, technical progress, and innovation. We emphasize the role of governments and institutional factors. We also discuss how growth is affected by trade, income inequality and by the availability of natural resources.  The second part of the course explores the demand side of the economy and short-run equilibrium phenomena. We consider labor markets (unemployment, wage dynamics, etc.), monetary policy, financial factors, stabilization policy, and financial crises.

Instructor(s):
Day/Time:
Tues/Thurs. 9:00-10:15
Econ 550a. Econometrics I

This course is designed to cover the mathematical and statistical material required for entry into Econometrics II. Syllabus: Introduction to measure theoretic probability; random variables, distributions and densities; expectations and conditional expectations; families of distributions and transformations; multivariate normal distribution; notion of statistical inference; the methods of estimation and optimality; decision theoretic approach; hypothesis testing; introduction to asymptotic theory; law of large numbers and central limit theorem; asymptotics for maximum likelihood estimation. Note: Students who have preparation equivalent to that of economics Ph.D. students will be admitted with permission of the instructor.

Instructor(s):
Day/Time:
Monday/Wednesday, 10:30-11:50
Econ 556a. Topics in Empirical Economics & Public Polilcy

In this course a number of methods and approaches to empirical economic analysis are reviewed.  These are then illustrated and discussed with reference to specific empirical studies.  The emphasis is on learning to use methods and to developing an understanding on how specific empirical questions determine the empirical approach to be used.  As a result we review a broad range of approaches including program evaluation methods and structural modelling including estimation approaches, computational issues and problems with inference.

COURSE REQUIREMENT:  Term paper replicating and critically assessing an empirical study

This course is available only to Ph.D. students from the Department of Economics.  Exceptionally Ph.D. students from other departments can take the course for credit if a faculty member, normally from their department, can supervise and grade their term paper.

Instructor(s):
Day/Time:
Monday/Wednesday 10:30-11:50
Econ 557a Econometrics of High-Dimensional Models

This class provides an introduction of econometrics of high-dimensional models.  The class will cover the following topics:  1)  relevant results in probability theory (concentration and maximal inequalities); 2) estimation of linear high-dimensional models using Lasso, Dantzig selector, and related methods; 3) estimation of generalized linear high-dimensional models (e.g., quantile and logit regressions) using penalized M-estimators;  4) basics of machine learning (regression trees, random forests, neural networks); 5) semi-parametric inference in high-dimensional models via double machine learning; 6) related topics in econometrics such as grouped fixed effect estimators in panel data and many moment inequalities.  Although the class will be primarily based on research papers, as a general reference, a highly recommended textbook is Wainwright (2019), High-dimensional statistics:  a non-asympotic view point, Cambridge University Press.

Instructor(s):
Denis Chetverikov
Day/Time:
Tues/Thurs 2:30-3:50
Econ 558a. Statistics and Econometrics (IDE)

This is an introductory course in econometrics for IDE students. The topics in the course include basic probability and statistics; linear regression; estimation and testing of economic model.

Instructor(s):
Day/Time:
Tuesday/Thursday 2:30-3:45
Econ 567a. Econometrics Seminar

This seminar will provide a forum for state-of-the-art research in econometrics. Its primary purpose will be to disseminate the results and the technical machinery of the latest research in theoretical and applied fields. Efforts will be made to maintain a high level of effective communication through the conduct of the seminar and the provision of manuscripts.

Instructor(s):
Day/Time:
Wednesday, 4:00-5:20
Econ 569a Econometrics Research Workshop

A research workshop in econometrics where students, visitors, and faculty disseminate ideas and receive feedback on ongoing research.  Presentations typically emphasize conceptual advances and the technical details of developmental work.

Day/Time:
Monday 2:30-4:00
Econ 570a. Econometrics Prospectus Lunch

A course for 3rd and 4th year students doing research in econometrics to assist in research start-up, to prepare prospectuses and to present dissertation work.  Students are required to give one presentation in the prospectus lunch each semester and are encouraged to give two talks, one that overviews problems that interest them with potential for further research and one that provides more detailed developments in preparation for the required prospectus.

Instructor(s):
Day/Time:
M 12:00-1:00
Econ 580a. General Economic History: Western Europe

A survey of some major events and issues in the economic development of Western Europe during the 18th and 19th centuries, stressing the causes, nature, and consequences of the industrial revolution in Britain and on the Continent, and the implications of the historical record for modern conceptions of economic growth. This course is intended for students in the Economics program. Simultaneous enrollment in or successful completion of Econ 500a and Econ 510a; permission of the instructor.

PLEASE NOTE:

Pre-docs,  students in other Yale programs and those who are visiting the Yale program will not, unfortunately, be allowed to take the course.  If you have questions please see Professor Guinnane in his office hours.

Instructor(s):
Day/Time:
Tuesday/Thursday 8:30-9:50
Econ 588a. Workshop in Economic History

This workshop is organized as a forum for discussion and criticism of research in progress. Presenters will include graduate students, Yale faculty, and visitors. Topics concerned with long-run trends in economic organization are suitable for the seminar. Special emphasis will be given to the use of statistics and of economic theory in historical research.

Instructor(s):
Day/Time:
Monday 2:30-3:50
Econ 600a. Industrial Organization

The course combines theoretical and empirical analysis of market behavior. Methodologically, the emphasis is on identification and estimation of empirical models that are consistent with, or even derived directly from, theoretical models. Topics to be covered include collusion, demand estimation, differentiated products, oligopoly, entry and exit, vertical relations, auctions, dynamic oligopoly models, network markets, estimation of production functions, and the roles of moral hazard and adverse selection in markets. While the focus of the course will be on empirical work, the discussion of each topic will include the relevant theoretical framework.

Instructor(s):
Day/Time:
Tuesday/Thursday 10:30-11:50
Econ 606a. Industrial Organization Prospectus Workshop

This workshop for third-year and other advanced students in industrial organization. It is intended to guide students in the early stages of dissertation research. The emphasis will be on presentation and discussion of material by students that will (hopefully) lead to dissertations by those students. Each student must make at least one such presentation by the end of the year and multiple presentations by students at different stages of their research are encouraged. Students enrolled in this workshop are strongly encouraged to attend at least one advanced workshop in the field or fields that interest them.

Day/Time:
Thursday 12:00-1:00 pm
Econ 608a. Industrial Organization Seminar

For graduate students in applied micro economics and interested faculty. It will serve as a forum for presentation and discussion of work in progress of students, Yale faculty members, and invited speakers.

Day/Time:
Tuesday 2:30-4:00
Econ 630a. Labor Economics

First semester: Topics covered will include: approaches to labor supply and family coordination of time allocation and commodity demand, incorporating gender and generational bargaining; human capital, job tenure, union status, and discrimination as wage determinants; wage inequality as affected by skill supplies, minimum wages, unions, immigration, and international trade; interpretation of compensating variations in wages as evidence on employer demands, job and location amenities.

Instructor(s):
Day/Time:
Tuesday/Thursday 9:00-10:20
Econ 638a. Labor/Public Economics Workshop

A forum primarily for graduate students to exposit their research plans and findings. Students planning to write a dissertation on labor and human capital economics and related microeconomic and demographic household behavior should attend and participate. Discussions will encompass both high and low income countries. Faculty and several outside speakers will be invited to report on their research each term.

Day/Time:
Thursday 3:30-5:00
Econ 640a. Labor/Public Economics Prospectus Workshop

This workshop is for third-year and other advanced students in labor and public finance. It is intended to guide students in the early stages of dissertation research. The emphasis will be on presentation and discussion of material by students that will eventually lead to dissertation topics.

Day/Time:
Tuesday 12:00 - 1:00
Econ 670a/Mgmt 740a Financial Economics I

The purpose of this course is to provide the foundations for the study of modern financial economics. Concentrating on individual’s consumption and portfolio decisions under uncertainty, we will explore the implications of these decisions on the valuation of securities. The focus will be on single period models although some dynamics, discrete-time models will be considered. Topics will include stochastic dominance, arbitrage, CAPM and APT.

Day/Time:
Mon/Weds 2:40-4:00
Econ 675a/MGMT 720a Models of Operations Research and Management

This course aims to expose graduate students to main stochastic modeling methods and solution concepts used to study problems in  operations research and management.  The first half of the class will cover analysis of queuing models such as Markovian queues, networks of queues, and queues with general arrival or service distributions, as well as approximation techniques such as heavy traffic approximation.  The second part will focus on control of stochastic processes; it will cover finite and infinite-horizon dynamic programming problems, and special classes such as linear quadratic problems, optimal stopping, and multi-armed bandit problems.

Instructor(s):
Vahideh Manshadi
Day/Time:
Wednesday 4:10-7:10
Econ 679a Financial Economics Student Lunch

This workshop is for third-year and other advanced students in financial economics.  It is intended to guide students in the early stages of dissertation research.  The emphasis will be on presentation and discussion of material by students that will eventually lead to discussion topics.

Day/Time:
Tuesday 11:35-12:55
Econ 680a. Public Finance I

This course has two objectives.  The primary objective is to teach the leading current tools and methods of public finance.  The second objective is to advance student’s development by providing training in the production of high-quality research.  This training may help students read, contribute to, and draw from recent progress in this literature.  The course covers major topics in public finance including externalities, public goods, benefit/cost analysis, fiscal federalism, social insurance, retirement savings, poverty and inequality, taxation, and others.  Applications will be provided to crime, education, environment and energy, health and health insurance, housing, and other markets and domains.  This course covers a variety of applied methods including sufficient statistics, randomized control trials, hedonic models, regression discontinuity, discrete choice, spatial equilibrium, dynamic growth models, differences-in-differences, integrated assessment models, applied general equilibrium, event studies, firm production functions, learning models, general method of moments, and propensity-score reweighting estimators.

Instructor(s):
Day/Time:
Monday/Wednesday 2:30-3:50
Econ 706a Prospectus Workshop in International Economics

This workshop is for third-year and other advanced students in international economic fields.  It is intended to guide students in the early stages of dissertation research.  The emphasis will be on presentation and discussion of material by students that will eventually lead to prospectus.

Day/Time:
Tuesday 12:00-1:00
Econ 720a. International Trade I

This course is the second part of International Trade and is jointly taught by Professors Cecilia Fieler and Costas Arkolakis through the Fall Semester.  We intend to introduce students to the main theories and modeling techniques used in international trade and Spatial economics as a whole.  The first part will cover the basic theory of international trade, spanning from Neoclassical Theory where trade is the result of comparative advantage (Ricardo, Hecksher-Ohlin), to the New Trade Theory where trade is generated by imperfect competition and increasing returns to scale.  Particular emphasis will be placed on the implications of the different theories concerning the aggregate gains or losses from trade and the distributional implications of trade liberalization.  The second part of the course will cover recent advancement in spatial models.  The material will cover a basic structure that includes and generalizes gravity models of trade, multi-region quantitative models of geography, urban models, under a unified setup.  We will discuss solution methods, positive analysis of the existence and uniqueness of equilibria, analysis of the comparative statics, and welfare implications.  Further implications of openness and exposure to global shocks in local labor markets will be analyzed. The last part of the course focuses on aspects of international trade in developing countries.  We modify standard trade models to account for such differences and study their implications for the welfare gains from trade.  Micro evidence links international trade to the adoption of technologies and demand for skilled workers in developing countries.  We model and quantify several mechanisms through which trade influences firms’ incentives to adopt new technologies:  Increasing returns to scale, export expansion, higher-quality intermediate inputs and capital.  Adoption decisions are intertwined across firms linked through production chains.  Technology adoption may also influence markups, which in turn lead to an inefficient allocation of factors.

Instructor(s):
Day/Time:
Mon/Weds 1:10-2:25
Econ 724a International Finance

Description Forthcoming

Instructor(s):
Day/Time:
Monday 4:00-7:00
Econ 728a. Workshop in International Trade

This workshop is a forum for discussion about research in International Trade. Yale graduate students conducting dissertation research in issues related to International Trade are strongly encouraged to present their work. They need to discuss guidelines and scheduling with the seminar organizers. Students who anticipate undertaking work in trade are expected to attend the workshop and to register at least during one semester.

Day/Time:
Wednesday 2:30 - 4:00
Econ 730a. Economic Development I

The goals of this course are two. The first half is to explore the application of microeconomic analysis to issues of development in poor countries. The second half will analyze the implications for Development of sectoral and economy-wide issues and policies such as growth, savings and investment (including foreign direct investment), domestic and external debt, fiscal, monetary, trade and exchange rate policies, and political economy. The focus of the microeconomic component of the course is the study of household behavior In developing countries. The course will cover formal and informal financial markets, household savings and investment decisions, education, health and nutrition, technological innovation and project evaluation. The focus of the second component is primarily on analytics of policy based on recent literature. Experience of individual and groups of developing countries will be used illustratively. This course presumes knowledge of development economics at an undergraduate level. Students should have knowledge of the structural characteristics of developing countries, and be familiar with the traditional models of development economics (basic growth theory, macroeconomic and trade theories and dual economy models). In addition, it is assumed that you have the first-year sequences in microeconomics and econometrics.

Full-year course sequence required for credit.

Instructor(s):
Day/Time:
Tuesday/Thursday 10:30-11:50
Econ 737a/330a Economics of Natural Resources

Microeconomic theory brought to bear on current issues in natural resource policy. Topics include regulation of pollution, hazardous waste management, depletion of the world’s forests and fisheries, wilderness and wildlife preservation, and energy planning.

Also Econ 330a.

Instructor(s):
Day/Time:
Mon/Weds. 10:30-11:20
Econ 740a/F&ES 701a Climate Change Economics

This course will focus on research methods in the economics of climate change, focusing particularly on impact studies.  The topics include important studies on impacts as well as research syntheses and research replication.  The course will be organized around several modern valuation studies that are central to the estimation of the economic impacts of climate change.  The purpose of this course is to provide students with training in dealing with quantitative economic analysis and modeling.  Students will form teams of two and choose a study.  They will gather the data and methods of that study from the authors or a journal.  They will then attempt to replicate the published results.  The teams will (1) study the theory empirical analysis, (2) gather the data and modeling to replicate the results, and (3) determine how sensitive the results are to the assumptions and specifications.  Students need to have taken econometrics and the relevant courses in economics.  The course will meet every other week for the entire year to give students time to analyze their studies and present their results to the class.  Course requirements are presentations, a course paper, and intermediate products.  Courses meets every other week for both fall and spring semester, one semester worth of credit.  Limited enrollment.

Instructor(s):
Day/Time:
M/W 1-2:20
Econ 750a. Development Workshop

This workshop is designed as a forum for graduate students and faculty with an interest in international trade and economic problems of developing countries. Faculty, students, and a limited number of outside speakers will discuss research work in progress. Student participants will be encouraged to develop and present a workshop paper in each term. The scope of topics includes: international trade (theory, policy and empirical analysis), agricultural and rural development, industrial development, employment, poverty and income distribution, structural adjustment and macroeconomic stabilization and interaction of international trade and development.

Day/Time:
Monday 2:30-3:50
Econ 756a. Prospectus Workshop in Development

This workshop is for third-year and other advanced students in Development. It is intended to guide students in the early stages of dissertation research. The emphasis will be on presentation and discussion of material by students that will eventually lead to dissertation topics.

Day/Time:
Monday 12:00 - 1:00
Econ 788a. Political Competition

Political competition in democracies is party competition. We develop, from the formal viewpoint, theories of party competition in democracies. The familiar “median voter theorem” of A. Downs is the simplest example of such a theory, but it is inadequate in several ways. We develop a theory in which parties: (1) compete over several issues, not just one issue, as in Downs; (2) are uncertain about how citizens will respond to platforms; and (3) represent constituencies in the population. Applications, particularly to the theory of income distribution and taxation, are studied.  We conclude the course with several lectures on the theory of Kantian optimization, which provides micro-foundations for how players in a game cooperate with each other, with applications to taxation and income distribution.

Also PolSci 575a.

Instructor(s):
Day/Time:
W 9:25-11:15
Econ 899a. Independent Reading and Research

Description forthcoming.

Econometrics Research Workshop

Econometrics Research presentations by faculty, staff and visitors

Day/Time:
Monday 2:30-3:50

Spring

Econ 501b. General Economic Theory: Microeconomics

This course is an introduction into game theory and the economics of information. It begins with the basic notions of action, strategy and equilibrium for complete information environments. The theory is extended to cover situations where different agents have different informations. This extends game theory to cover situations where every agent may possess private information. The classic models of adverse selection, signaling and moral hazard are introduced first. We end with the general theory of mechanism design which will lead us, inter alia, to the theory of auctions and related optimal trading problems.

Instructor(s):
Day/Time:
Tues/Thurs 9:00-10:20
Econ 511b. General Economic Theory: Macroeconomics

Monetary theory and modern theories of short-run fluctuations (real business cycle theory and sticky price theories), and the conduct of monetary policy (monetary policy rules, advantages of credible policy commitments). Theory of dynamic factor demand and empirical models of investment. Equilibrium job search and unemployment. Continuous time Dynamic Programming with diffusion and jump processes.

Instructor(s):
Day/Time:
Mon/Weds 10:30-11:50
Econ 521b. Advanced Microeconomic Theory: II

Games with cheap talk (strategic information transmission, experts, and information cascades); repeated games under various monitoring assumptions; game theoretic models of reputations; and high order beliefs (implications for game theory and mechanism design.

Day/Time:
Monday 2:00-5:00
Econ 523b. Microeconomic Theory Lunch

Provides a forum for advanced students to examine critically recent papers in the literature and to present their own work. Permission of the instructor is required.

Day/Time:
Tues. 12:00 - 1:00
Econ 526b. Advanced Macroeconomics: II

Macroeconomic equilibrium in the presence of uninsurable labor income risk. Implications for savings, asset prices, and unemployment.

Instructor(s):
Day/Time:
Weds. 4:00-7:00 pm
Econ 528b Continuous-Time Macroeconomics

This graduate course will provide a survey into some of the basic methods and recent advances in continuous-time macroeconomics.  It will begin with a brief introduction into continuous-time stochastic processes and Ito Calculus, optimization with Hamiltonians and Hamilton-Jacobi-Bellman Equations, and Kolmogorov Backward and Forward Equations.  We will then explore examples of continuous-time macroeconomic models through the lens of different research topics, such as growth, firm size, risk-sharing, credit frictions, and financial intermediation.  If there is time at the end of the course, we will cover several advanced topics and techniques, such as Mean Field Games, robustness, and filtering.

Instructor(s):
Michael Sockin
Day/Time:
Tuesday 4:00-7:00
Econ 531b. Mathematical Economics II: Foundations of Finance and Macroeconomics

This is an advanced graduate course devoted to the study of recent developments in general equilibrium models with financial frictions.  Topics covered include financial amplification and crises, asset price bubbles, limits to arbitrage, liquidity and credit crunches, intermediation and banking, financial regulation, dispersed information and learning in financial markets, and financial recessions.  Taking Econ 530a is not a prerequisite, but is advised.

Course category:  Finance, Macro, Theory

Instructor(s):
Instructor(s):
Herakles Polemarchakis
Day/Time:
Tues/Thurs 1:00-2:20
Econ 538b. Microeconomic Theory Workshop

This seminar will meet weekly. Presentations will be divided between research scholars and participating students. Speakers will be encouraged to spend the first half hour giving a brief history of thought on the questions they are addressing.

Day/Time:
Wed. 2:30 - 3:50
Econ 541b. Macroeconomics Student Workshop (Macro Lunch)

A course for third and fourth year students doing research in macroeconomics to prepare their prospectuses and to present their dissertation work. Each student will be required to make at least two presentations per semester. For third year students and beyond, at least one of the presentations in the first semester should be a mock job talk.

Day/Time:
Thurs. 12:00 - 1:00
Econ 543b. Macroeconomics Workshop

A forum for presentation and discussion of state-of-the-art research in macroeconomics. Presentations by research scholars and participating students of papers in closed economy and open economy macroeconomics and monetary economics.

Day/Time:
Tuesday 2:20 - 3:50pm
Econ 551b. Econometrics II

This course is designed for first year Ph.D. students who eventually want to do research either in theoretical econometrics or in any other fields that have to estimate and test their economic models and/or conduct policy analysis. An Economic model is a family of probability distributions proposed by a researcher that could possibly have generated the data of some economic variables (viewed as random variables). Given the economic data (either cross section or time series or panel), a researcher would like to select a particular probability distribution from the family of distributions to “best match” the data.

In this course we take economic models as given, but will learn how to estimate a general class of parametric models or semiparametric models, how to conduct testing and inference given the data. We shall present all classical estimation and inference procedures, including linear regression, linear instrumental variables, nonlinear regression, quantile regression, minimum distance, generalized method of moments, maximum likelihood, quasi-maximum likelihood. We will discuss in detail: (1) identification of model parameters; (2) consistency, asymptotic normality, and semiparametric efficiency of various estimators; (3) hypothesis testing and model selection. In particular, we can present all the asymptotic theory within the framework of (non-linear) extreme estimation and testing. Empirical applications include estimation and inference of some popular economic models in microeconomics and macroeconomics. Prerequisite: Econ. 550a or equivalent. Basic knowledge of probability, matrix algebra and mathematical statistics.

Instructor(s):
Day/Time:
Mon/Weds. 1:00-2:20
Econ 552b. Econometrics III

This course is designed for first-year students with a strong background in statistical theory and second year students who have taken Econometrics II (Econ 551). The aim of the course is to provide a theoretical background that is useful for research in econometric methods. The topics covered in this course are: (i) the basic linear model, including a review of relevant linear algebra and projection material (not covered in class), some optimality results of least squares (including loss and risk functions, sufficient statistics, and completeness), and finite sample testing results, (ii) some asymptotic theory not covered in econometrics I (Econ 550), (iii) consistency of extremum estimators–least squares, maximum likelihood, generalized method of moments, (iv) asymptotic normality of extremum estimators, (v) testing in nonlinear models (Wald, likelihood ratio, and Lagrange multiplier tests) and specification tests, (vi) parametric and nonparametric identification, with emphasis on the recent advances in nonparametric identifiability results, and (vii) basic nonparametric estimation techniques, such as kernel estimation, and various semiparametric estimators. Additional topics that will be discussed as time permits are: (viii) the bootstrap, (ix) simulation estimation, and (x) weak instruments.

Instructor(s):
Day/Time:
Tues/Thurs 1:00-2:20
Econ 553b. Econometrics IV: Time Series Econometrics

This is a one semester version of a two-course sequence in time series econometrics. This course provides an introduction to time series methods in econometrics covering aspects of trend behavior, detrending mechanisms and their properties, unit root theory, cointegrated system approaches, realized volatility and quarticity, model selection, Wold and BN decompositions, nonlinear nonstationary models, spatial density asymptotics, and long memory modeling. Both time domain and frequency domain methods are discussed, and Bayesian as well as classical approaches are included. The treatment relies on asymptotic theory for linear processes, martingales and martingale approximations. Theory, computations and some empirical applications are discussed. Most classes are divided into two parts, one dealing with theory and the other with empirics. Credit for the course is obtained from a take home examination, a scientific overview paper, or an empirical paper that may be used for the applied econometrics paper requirement.

Instructor(s):
Jia Li
Day/Time:
Tuesday 3:00-6:00
Econ 554b Econometrics V.

Forthcoming

Instructor(s):
Day/Time:
Thurs. 4:00-6:30
Econ 559b Development Econometrics (IDE)

Description Forthcoming.

Instructor(s):
Day/Time:
T/Th 2:30-3:50
Econ 568b. Econometrics Seminar

This seminar will provide a forum for state-of-the-art research in econometrics. Its primary purpose will be to disseminate the results and the technical machinery of the latest research in theoretical and applied fields. Efforts will be made to maintain a high level of effective communication through the conduct of the seminar and the provision of manuscripts.

Instructor(s):
Day/Time:
Wed. 4:00 - 5:30
Econ 569b Econometrics Research Workshop

A research workshop in econometrics where students, visitors and faculty disseminate ideas and receive feedback on ongoing research.  Presentations typically emphasize conceptual advances and the technical details of developmental work.

Day/Time:
M 2:30-3:50
Econ 571b. Econometrics Prospectus Lunch

A course for 3rd and 4th year students doing research in econometrics to assist in research start-up, to prepare prospectuses and to present dissertation work.  Students are required to give one presentation in the prospectus lunch each semester and are encouraged to give two talks, one that overviews problems that interest them with potential for further research and one that provides more detailed developments in preparation for the required prospectus.

Instructor(s):
Day/Time:
Monday 12:00-1:00
Econ 581b. General Economic History: United States

This course will examine both the long-term factors (such as industrialization and the development of markets) and the epochal events (such as the Revolution, Civil War, and Great Depression) that have shaped the development of the American economy. The objectives of the course are to familiarize students with the major topics and debates in American economic history and to introduce students to the methods and materials of economic history.This course is intended for students in the Economics program.  Simultaneous enrollment in or successful completion of Econ 500a and Econ 510a; permission of the instructor.

Day/Time:
Tues/Thurs. 10:30-11:50
Econ 589b. Workshop in Economic History

This workshop is organized as a forum for discussion and criticism of research in progress. Presentors will include graduate students, Yale faculty, and visitors. Topics concerned with long-run trends in economic organization are suitable for the seminar. Special emphasis will be given to the use of statistics and of economic theory in historical research.

Instructor(s):
Day/Time:
Monday 4:00-5:20
Econ 601b. Industrial Organization

The course combines theoretical and empirical analysis of market behavior. Methodologically, the emphasis is on identification and estimation of empirical models that are consistent with, or even derived directly from, theoretical models. Topics to be covered include collusion, demand estimation, differentiated products, oligopoly, entry and exit, vertical relations, auctions, dynamic oligopoly models, network markets, estimation of production functions, and the roles of moral hazard and adverse selection in markets. While the focus of the course will be on empirical work, the discussion of each topic will include the relevant theoretical framework.

Instructor(s):
Day/Time:
T/Th 10:30-11:50
Econ 607b. Industrial Organization Prospectus Workshop

This workshop for third-year and other advanced students in industrial organization. It is intended to guide students in the early stages of dissertation research. The emphasis will be on presentation and discussion of material by students that will (hopefully) lead to dissertations by those students. Each student must make at least one such presentation by the end of the year and multiple presentations by students at different stages of their research are encouraged. Students enrolled in this workshop are strongly encouraged to attend at least one advanced workshop in the field or fields that interest them.

Day/Time:
Thurs. 12:00-1:00
Econ 609b. Industrial Organization Seminar

For graduate students in applied micro economics and interested faculty. It will serve as a forum for presentation and discussion of work in progress of students, Yale faculty members, and invited speakers.

Day/Time:
Tues 2:30-4:00
Econ 631b. Labor Economics

Second semester: Topics covered will include static and dynamic models of labor supply, human capital wage function estimation, firm specific training, compensating wage differentials, discrimination, household production, bargaining models of household behavior, intergenerational transfers and mobility.

Day/Time:
Weds. 1:00-4:00 pm
Econ 639b. Labor/Public Economics Workshop

A forum primarily for graduate students to exposit their research plans and findings. Students planning to write a dissertation on labor and human capital economics and related microeconomic and demographic household behavior should attend and participate. Discussions will encompass both high and low income countries. Faculty and several outside speakers will be invited to report on their research each term. Weekly meetings will be held on Friday’s at noon.

Day/Time:
Thurs. 3:30-5:00
Econ 640b. Labor/Public Economics Prospectus Workshop

This workshop is for third-year and other advanced students in labor and public finance. It is intended to guide students in the early stages of dissertation research. The emphasis will be on presentation and discussion of material by students that will eventually lead to dissertation topics.

Day/Time:
Tues. 12:00 - 1:00
Econ 672b Behavioral Finance

Much of modern financial economics works with models in which agents are rational, in that they maximize expected utility and use Bayes’ law to update their beliefs. Behavioral finance is a large and active field which studies models in which some agents are less than fully rational. Such models have two building blocks: limits to arbitrage, which make it difficult for rational traders to undo the dislocations caused by less rational traders; and psychology, which catalogues the kinds of deviations from full rationality we might expect to see. We discuss these two topics, and then consider a number of applications: asset pricing (the aggregate stock market and the cross-section of average returns); individual trading behavior; and corporate finance (security issuance, corporate investment, and mergers). This is a research-oriented course aimed at Ph.D. students. Undergraduate students with outstanding academic records and prior experience of graduate courses may register with the instructor’s permission. Grades will be based on a small number of referee reports and a final exam.

Instructor(s):
Day/Time:
Thurs. 4:10-7:00
Econ 674b. Financial Crises

An elective doctoral course covering theoretical and empirical reserach on financial crises. The first half of the course focuses on general models of financial crises and historical episodes from the nineteenth and twentieth centuries. The second half of the course focuses on the recent financial crisis. Prerequisites: Mgmt 740a and 741b (doctoral students in Economics may substitute the core microeconomics sequence), and permission of the instructor.

Also: Mgmt 746b

Instructor(s):
Day/Time:
Weds. 1:00-4:00
Econ 676b Corporate Finance

Corporate Finance will consist of two half semester modules, which must be taken together for credit for the Economics Ph.D. program.  Zhiguo He will teach the first module in the spring.  It will provide a theoretical treatment of major topics in corporate finance and banking, including: capital structure; incomplete contract and ownership; agency theory, information, and financial contracting; corporate finance and financial market; banking and intermediaries; and recent topics relating to financial crises.  Kelly Shue will teach the second module in the spring.  It will provide an overview of the modern empirical toolkit that is used in corporate finance.  We will cover a variety of reduced-form empirical methods, with applications to selected topics at the frontier of corporate finance empirical research.

Also Mgmt 748b

Instructor(s):
Instructor(s):
Zhiguo He
Day/Time:
Weds. 8:30-11:30
Econ 681b. Public Finance II

This course covers areas of active empirical research and research methods on the effects of taxes and government spending programs. 

Specific topics that will be covered include inequality, income and capital taxation, social insurance programs (Social Security, Disability Insurance, Unemployment Insurance) and intergenerational links in economic opportunities.

As estimated dynamic models are central for understanding the welfare effects of social insurance programs the course will include practical sessions on computational methods for solving them and estimating their parameters.

Instructor(s):
Day/Time:
Tues/Thurs 9:00-10:20
Econ 707b Prospectus Workshop in International Economics

This workshop is for third-year and other advanced students in international economic fields.  It is intended to guide students in the early stages of dissertation research.  The emphasis will be on presentation and discussion of material by students that will eventually lead to prospectus.

Day/Time:
Tuesday 12:00-1:00
Econ 721b. International Trade II

This course is the second part of the International Trade sequence.  We have divided it in two:  Part I is taught by Samuel Kortum and Part II by Lorenzo Caliendo.

The course is organized around six major issues:  (i) Trade and Climate Policy; (ii) Trade Wars:  Causes and Consequences; (iii) Trade, Intellectual Property, and Growth; (iv) Firms and Trade; (v) Trade and Organizations; and (vi) Trade Policy and Labor Markets.  In addressing these topics we will deconstruct basic theories of international trade to bring out their insights and quantitative implications.  The course involves a mix of theory, data, and computation.

Day/Time:
Monday 2:00-5:00
Econ 728b. Workshop in International Trade

This workshop is a forum for discussion about research in International Trade. Yale graduate students conducting dissertation research in issues related to International Trade are strongly encouraged to present their work. They need to discuss guidelines and scheduling with the seminar organizers. Students who anticipate undertaking work in trade are expected to attend the workshop and to register at least during one semester.

Day/Time:
Wed. 2:40 - 4:10
Econ 731b. Economic Development II

Analysis of development since the second world war. Planning and policymaking across countries and over time. Models of development, growth, foreign trade and investment. Trade, capital and technology flows and increasing interdependence. Macroeconomics of Development; Monetary, Fiscal and Exchange Rate Policies; Stabilization and adjustment, models of speculative attacks and financial crises. The political economy of policymaking and policy reform. Developing countries in global financial and trading system and institutions.

Instructor(s):
Day/Time:
Mon/Weds 10:30-11:50
Econ 732b. Advanced Economic Development (IDE)

Examines the models of classical and modern economists to explain the transition of developing economies into modern economic growth, as well as their relevance to income distribution, poverty alleviation and human development outcomes. For students not pursuing a Ph.D. in Economics. This course will focus on development theory and policy and cover many of the topics included in Econ 730a and Econ 731b.

Instructor(s):
Day/Time:
Mon/Weds 2:30-3:45
Econ 750b. Development Workshop

This workshop is designed as a forum for graduate students and faculty with an interest in international trade and economic problems of developing countries. Faculty, students, and a limited number of outside speakers will discuss research work in progress. Student participants will be encouraged to develop and present a workshop paper in each term. The scope of topics includes: international trade (theory, policy and empirical analysis), agricultural and rural development, industrial development, employment, poverty and income distribution, structural adjustment and macroeconomic stabilization and interaction of international trade and development.

Day/Time:
Mon. 2:30-3:50
Econ 756b. Prospectus Workshop in Development

This workshop is for third-year and other advanced students in Development. It is intended to guide students in the early stages of dissertation research. The emphasis will be on presentation and discussion of material by students that will eventually lead to dissertation topics.

Day/Time:
Mon. 12:00-1:00
Econ 790b. Empirical Political Economy

The course provides an overview of the field of empirical political economy. While students will be expected to familiarize themselves with the most prevalent models in the field, the emphasis in this course will be on the applied work. The goal is for students to attain a working knowledge of the literature, to learn to critically evaluate the literature and most importantly to develop the skills to come up with interesting, workable and theoretically grounded research questions that will push that literature forward.

Instructor(s):
Day/Time:
Mon 2:30-5:00
Econ 899b. Independent Reading and Research

Description forthcoming.

Not offered

Econ 502. Optimization in Economic Theory for 1st Year Economics Ph.D. Students

This course covers mathematical methods important in economic theory, including Kuhn–Tucker theory, continuous time optimal control theory, dynamic programming, zero sum games and repeated sum games. Details of description to follow. [1/2 credit course]

Econ 529a Macroeconomics of Networks

This course is intended as an introduction to the field of economic and financial networks.  Starting with some of the basic concepts and tools from graph theory, the focus of the course then shifts to frontier research topics, with applications to microeconomics, macroeconomics, and finance.  Course is cross listed undergraduate Econ 440a

The expectation is that the final project submitted by graduate students is of high quality, with the potential of turning into a research paper.  Graduate students are expected to write a referee report on a working paper (not yet published) related to the literature by the end of the semester.  The report should contain a summary of the paper, its weak and strong points, the relevance of the question under study, and any potential mistakes.  It should also contain suggestions about alternative methods/models/questions the paper can address.

Econ 530a. Mathematical Economics I: Foundations of Finance and Macroeconomics

This course gives a careful mathematical description of the general equilibrium underpinnings of the main models of finance and the new macroeconomics of collateral and default.  Part I is a review of Walrasian general equilibrium, including the mathematical techniques of fixed points and genericity, both taught from an elementary point of view.  Part II covers general equilibrium with incomplete markets (GEI).  Part III focuses on the special case of the capital asset pricing model (CAPM), including extensions to multi-commodity CAPM and multifactor CAPM.  Part IV focuses on the Modigliani Miller theorem and generic constrained inefficiency.  Part V describes collateral equilibrium and the leverage cycle.  Part VI covers default and punishment and adverse selection and moral hazard in general equilibrium.  Part VII describes monetary equilibrium. 

Course category:  Finance, Macro, Theory

Instructor(s):
Econ 536b. Optimization Techniques

Fundamental theory and algorithms of optimization, emphasizing convex optimization. The geometry of convex sets, basic convex analysis, the principle of optimality, duality. Numerical algorithms: steepest descent, Newton’s method, interior point methods, dynamic programming, unimodal search. Applications from engineering and the sciences.

Prerequisites: MATH 120 and 222, or equivalents. May not be taken after AMTH 237.

[Also ECON 413 / AMTH 437 / EENG437]

Econ 544a. Economic Analysis (IR)

This course introduces I.R. Students to more advanced concepts of micro and macro economic analysis in an applied context. Different economies in different stages of development will be used as illustrations of these concepts. Areas covered will include employment, income and interest rate determination as well as theories of consumption, investment, pricing, money and production.

Also Econ 560a.

Econ 555b. Applied Econometrics II: Microeconomics

We will examine various program evaluation methods in econometrics.  First half focuses on non-structural methods and the second half focuses on methods based on structural modeling.  The lectures presume knowledge of graduate econometrics at the level of Wooldridge’s “Econometric Analysis of Cross Section and Panel Data,” Hayashi’s “Econometrics,” or Amemiya’s “Advanced Econometrics.”  It will be useful for participants to have a concrete application in mind in taking the course to examine how he/she will apply the methods presented in the lectures.

Econ 557a. Econometrics VI

Description to come

Econ 561b/417b Computational Methods in Economics

This course aims to teach students how to use computational methods to solve and analyze dynamic economic models. The first part of the course covers standard tools of numerical analysis that are useful in economics (minimization of functions, root-finding, interpolation, approximation of functions, integration, simulation). The second part shows how to use these tools to study dynamic economic problems in macroeconomics, finance, labor economics, public finance, and industrial organization. This part of the course pays special attention to methods for solving stochastic dynamic programming problems and for computing equilibria in economic models with heterogeneous actors.

Econ 562a/421aCompSci 512a Designing the Digital Economy

to be determined

Econ 563a. Economics and Computation

A mathematically rigorous investigation of the interplay of economic theory and computer science with an emphasis on the relationship of incentive compatibility and algorithmic efficiency.  Particular attention is paid to the formulation and solution of mechanism-design problems that are relevant to data networking and Internet-based commerce.  Suitable for mathematically inclined or advanced undergraduates and first-or second-year graduate students in Computer Science, Economics, or closely related fields.  Some familiarity with basic algorithmics and basic microeconomic theory will be helpful but is not a formal prerequisite.

Also CPSC 555a.

Econ 582a. Economic History of Latin America

This course examines some major issues and events in the economic growth and development of selected countries in Latin America during the 19th and 20th centuries. Emphasis is on the institutions and other historical factors that have affected the relative long-run performance of Latin American countries and their implications for understanding economic development.

Econ 591a Economics of Poverty Alleviation (IDE)

Class for students enrolled in IDE Program.  Course Description Forthcoming

Econ 591b Economics of Poverty Alleviation

Course for students in the IDE Program.  Course description forthcoming.

Econ 671b. Financial Economics II

The sequence of courses Financial Economics I and II examines financial theory in detail. The first term covers single-period models and the second term examines multi-period models. Topics covered include arbitrage, portfolio theory, efficient markets, CAPM, APT, contingent claims pricing and the term structure of interest rates.

Day/Time:
TBD
Econ 702b. International Economics (IDE)

Comparison of selected developing countries, where international trade has brought about rapid growth and large-scale reductions in poverty, with other countries, where global trade has increased inequality and brought little growth.  Both theoretical models and empirical evidence are used.

Microeconomics, econometrics or statistics

Econ 708b. International Economic Analysis (IR)

This course is a continuation of IR 560a/Econ 544a. It extends the use of economic analysis to international trade and monetary policy including exchange rates and balance of payments with an emphasis on their relation to international trade, cross border capital flows, and national economic policies. The second half of the course will introduce quantitative tools and analysis as a way to determine the effects of various policies, building on concepts introduced both in IR 560a/Econ 544a and the first part of this course.

Also IR 561b.

Econ 735b. Economics of Agriculture

This course is directed toward understanding the performance of the agricultural sector in the process of economic development. In the first part of the course the role of the sector in aggregated (macro) growth and development theories, including the recent endogenous growth theories is reviewed. In the second part of the course several micro-economic topics focusing on the agricultural household are covered. These include production and cost efficiency, time allocation and labor use, (including migration), contracts under varying forms of market efficiency, nutrition and health. The third part of the course deals with the production and diffusion of improved agricultural technology. The fourth part deals with institutions, infrastructure and markets. The final section covers food security policy and international markets.

Also Econ 329b.

Econ 740b Climate Change Impacts

This course will focus on research methods in the economics of climate change, focusing particularly on impact studies.  The topics include important studies on impacts as well as research syntheses and research replication.  The course will be organized around several modern valuation studies that are central to the estimation of the economic impacts of climate change.  The purpose of this course is to provide students with training in dealing with quantitative economic analysis and modeling.  Students will form teams of two and choose a study.  They will gather the data and methods of that study from the authors or a journal.  They will then attempt to replicate the published results.  The teams will (1) study the theory empirical analysis, (2) gather the data and modeling to replicate the results, and (3) determine how sensitive the results are to the assumptions and specifications. Students need to have taken econometrics and the relevant courses in economics.  The course will meet every other week for the entire year to give students time to analyze their studies and present their results to the class.  Course requirements are presentations, a course paper, and intermediate products.  Course meets every other week for both fall and spring semester, one semester worth of credit.  Limited enrollment.

Econ 740b. Experimental Economics Seminar

This is a doctoral level course on field experiments, i.e., controlled experiments that take place outside the university laboratory. The course includes standard laboratory-type surveys in non-standard environments, all the way to fully “natural” experiments in which the subjects do not realize that they are participating in controlled research. The course will be part methodological (e.g. selection bias, human subjects concerns, statistical techniques) and part substantive. A large focus will be on design of experiments, across many sub-fields within economics and other social science disciplines, with a large attention to using experiments to test theories. The major requirement for the course (in addition to presenting and critiquing papers from the literature) will be to fully design an implementible field experiment. Topics covered will include racial discrimination; incentives and cooperation; risk and time preferences; commitment and self-control; savings behavior; credit behavior; public health; education; charitable giving; altruism and social preferences; and possibly more depending on interest. Despite the long list of topics, research from developing countries will receive more than its pro-rata share of attention. Students from non-economics fields are welcome to contact the professors to discuss enrollment.

Econ 776a Economics of Taxation: Theory and Policy

This class focuses on the economic theories of taxation and their policy implications, both from a public finance and a macroeconomic perspectives.  Three main topics include:  labor income taxation, taxation of capital and optimal unemployment insurance.

Note:  This class will be a 1/2 credit class taught for 1/2 term.

Econ 776b. The Economics of Population

Analysis of economic aspects of population change including fertility, mortality, health, marriage, migration, and labor force behavior. Microeconomic models of household behavior incorporating gender and inter-generational bargaining over resource allocation, are used to explain behavior in contemporary low- and high-income countries. Policy interventions that seek to improve health, reduce fertility, or change work patterns are then evaluated statistically based on the developed models of household behavior.

Also Econ 462b.

Econ 780b. Economic Development and Political Economy

This is a Ph.D. level course on topics in political economy and economic development.  The six-week, .5 credit course intensively studies empirical papers on the role of formal and informal institutions in economic development – e.g., elections, social capital, trust, central planning, famine, foreign aid and conflict.  The class will cover many papers and students will be expected to actively participate in discussion.  The prerequisites are the first-year Ph.D. level courses in mico and macro economics, and econometrics, or by instructor approval.

Econ 791a Theories of Distributive Justice: Formal Models of Political Theory

Description Forthcoming  Also PolSci 534a.

We survey the main theories of distributive justice proposed by political philosophers since John Rawls, including A. Sen, R. Dworkin, G.A. Cohen, and R. Arneson.  We use economic models to study these theories, and we critique them from the economic and philosophical viewpoints.  We then read Thomas Piketty’s book Capital in the Twenty-First Century.  If time permits, we introduce a microeconomic theory modeling how people cooperate in the economic settings, to be contrasted with Nash equuilibrium, a model of how people here compete.

Permission of the instructor or microeconomics at the intermediate level.

Econ 792b. Political Economy of Institutions and Development

Description forthcoming.

Also PoliSci 721b.

Econ 793b. Comparative and International Political Economy

The first section of the course will focus on the link between theoretical models and current work in empirical political economy. Topics may include war, ethnic fragmentation, the resource curse, the optimal size of jurisdictions, decentralization, and federalism. Emphasis will be placed on structural estimation techniques where applicable. The second section of the course will focus on endogenous trade policies, and in particular on optimal trade policies under perfect competition and under oligopoly; the political economy of unilateral trade policy; and the economics of international trade agreements. Both theoretical and empirical work on these topics will be discussed.

Econ 794b. International Trade Policy

This course focuses on theoretical and empirical research in international trade policy, and more specifically on three topics:  (i) welfare analysis of trade policy; (ii) the political economy of trade policy; and (iii) international trade agreements.  Students will be expected to present recent papers in class and actively participate in discussion.  The prerequisites are the first-year Ph.D. courses in microeconomics, or by instructor approval.

Econ 795b. Topics in Political Economy

Course Description Forthcoming.

Econ 797b. Institutions, Politics, and Economic Policy (in Developing Countries)

This course examines issues on the political economy of institutions, with an empirical emphasis on developing countries (especially in Latin American) from a comparative perspective. It draws on theoretical tools and concepts used mostly in economics (such as game theory and the new institutional economics) to look into issues that are largely political. The first part of the class looks into theories of institutions and of institutional development, with emphasis on long-term development paths and on the endogeneity of institutions. The second part of the class investigates the contemporaneous functioning of political systems and policymaking processes, and their effects on public policies and economic performance. Some empirical topics include federalism, redistribution, and social policies. The emphasis will be on the ideas, not on the modeling per se, but students should be able to read materials that base their arguments on mathematical models and/or econometric evidence. The class is geared towards graduate students in Economics and Political Science — and it assumes some knowledge of game theory and of classic results in public choice / social choice theory.

Econ 798a. Equity and Climate Change

Climate change presents two important challenges for equity: 1) How should the rights to emit carbon into the biosphere be allocated across the present and future generations (i.e., equity across time) and 2) how should the rights … be allocated among regions of the world in the next 75, or so, years (i.e., equity across space). The course will present work, mainly by economists, addressing these issues. The problem will be to study paths of resource use which maximize an appropriate intergenerational social welfare function, subject to emitting a time-stream of CO2 which will maintain atmospheric concentration of carbon at an acceptable level. We will address debates involving utilitarianism, sustainability, and appropriate rates at which to discount the utility of future generations.

Also PolSci 724a.

Econ 890b. Stochastic Dynamic Programming and Stochastic Games

Stochastic dynamic programming is the theory of how to “control” a stochastic process so as to maximize the chance, or the expected value, of some objective. For example, a player might try to choose bets (investments) to maximize the chance of winning $1000 while playing roulette (the stock market). The subject is also known as Markov decision theory, stochastic control, or even gambling theory. The multitude of names is due in part to the many fields of application which include statistics, economics, operations research, and mathematical finance. The course will cover the basic theory of discrete-time dynamic programming including backward induction, discounted dynamic programming, positive, and negative dynamic programming. Several examples will be treated in detail. In a stochastic game, two or more players jointly control a stochastic process. Typically the players have different objectives and each player seeks to control the process in a way favorable to him or her. There will be an introduction of some fundamental concepts of game theory including the notions of the value of a two-person, zero-sum game and a Nash equilibrium for an n-person game. These concepts will then be used to study n-person stochastic games. The course will introduce strategic market games. These are stochastic games with infinitely many players that are used to model certain aspects of a large economy.