Introduction to optimization methods and partial equilibrium. Theories of utility and consumer behavior production and firm behavior. Introduction to uncertainty and the economics of information, and to noncompetitive market structures.
A formal introduction to game theory and information economics. Alternative non-cooperative solution concepts are studied and applied to problems in oligopoly, bargaining, auctions, strategic social choice, and repeated games.
The 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.
A course that gives third- and fourth-year students doing research in macroeconomics an opportunity to prepare their prospectuses and to present their dissertation work. Each student is required to make at least two presentations per term. For third-year students and beyond, at least one of the presentations in the first term should be a mock job talk.
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.
A survey of the main features of current economic analysis and of the application of the theory to a number of important economic questions, covering microeconomics and demand theory, the theory of the firm, and market structures. For IDE students.
This course presents a basic framework to understand macroeconomic behavior and the effects of macroeconomic policies. Topics include consumption and investment, labor market, short-run income determinations, unemployment, inflation, growth, and the effects of monetary and fiscal policies. The emphasis is on the relation between the underlying assumptions of macroeconomic framework and policy implications derived from it.
Probability: concepts and axiomatic development. Data: tools of descriptive statistics and data reduction. Random variables and probability distributions; univariate distributions (continuous and discrete); multivariate distributions; functions of random variables and transformations; the notion of statistical inference; sampling concepts and distributions; asymptotic theory; point and interval estimation; hypothesis testing.
Methods and approaches to empirical economic analysis are reviewed, illustrated, and discussed with reference to specific empirical studies. The emphasis is on learning to use methods and on understanding how specific empirical questions determine the empirical approach to be used. We review a broad range of approaches including program evaluation methods and structural modeling, including estimation approaches, computational issues, and problems with inference.
Application of statistical analysis to economic data. Basic probability theory, linear regression, specification and estimation of economic models, time series analysis, and forecasting. The computer is used. For IDE students.
A forum for discussion and criticism of research in progress. Presenters include graduate students, Yale faculty, and visitors. Topics concerned with long-run trends in economic organization are suitable for the seminar. Special emphasis given to the use of statistics and of economic theory in historical research.
Begins by locating the study of industrial organization within the broader research traditions of economics and related social sciences. Alternative theories of decision making, of organizational behavior, and of market evolution are sketched and contrasted with standard neoclassical theories. Detailed examination of the determinants and consequences of industrial market structure.
For third-year students in microeconomics, intended to guide students in the early stages of theoretical and empirical dissertation research. Emphasis on regular writing assignments and oral presentations.
Topics include static and dynamic approaches to demand, human capital and wage determination, wage income inequality, unemployment and minimum wages, matching and job turnover, immigration and international trade, unions, implicit contract theory, and efficiency wage hypothesis.
An elective doctoral course covering theoretical and empirical research 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.
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 is on presentation and discussion of materials presented by students that will eventually lead to dissertation topics. Open to third-year and advanced Ph.D. students only.
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 are provided to crime, education, environment and energy, health and health insurance, housing, and other markets and domains. The 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.
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 is on students’ presentation and discussion of material that will eventually lead to the prospectus.
The first part of this course covers the basic theory of international trade, from neoclassical theory where trade is the result of comparative advantage (Ricardo, Heckscher-Ohlin) to the “New Trade Theory” where trade is generated by imperfect competition and increasing returns to scale. Particular emphasis is 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 explores new advances in the field. It covers the Eaton-Kortum (2002) and Melitz (2003) models; extensions of these models with many countries, multiproduct firms, and sectors; methods of quantitative trade analysis to revisit classic questions (gains from trade, distributional effects of trade, trade policy); and new advances in dynamic trade theory.
A study of how consumers and firms are affected by the globalization of the world economy. Topics include trade costs, the current account, exchange rate pass-through, international macroeconomic co-movement, multinational production, and gains from globalization.
Linking of abstract economic concepts to concrete policy and management decisions. Application of theoretical tools of economics to global warming, pollution control, fisheries, forestry, recreation, and mining.
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 economic settings, to be contrasted with Nash equilibrium, a model of how people compete.