Permission of instructor required.

Introductory microeconomics with a special emphasis on quantitative methods and examples. Intended for students with limited or no experience with calculus.

Enrollment limited. Preregistration is required. May not be taken after ECON 110, 115.

Permission of instructor required.

Similar to Econ 115, but taught as a lecture discussion with limited enrollment.

Enrollment limited to freshmen and sophomores. Preregistration is required. May not be taken after Econ 116. Prerequisite: Econ 108, or 115.

Permission of instructor required.

Similar to Econ 115, but taught as a lecture discussion with limited enrollment.

Enrollment limited to freshmen and sophomores. Preregistration is required. May not be taken after Econ 116. Prerequisite: Econ 108, or 115.

Permission of instructor required.

Similar to Econ 115, but taught as a lecture discussion with limited enrollment.

Enrollment limited to freshmen. Preregistration is required. May not be taken after Econ 116. Prerequisite: Econ 108, or 115 or <117>.

Permission of instructor required.

Similar to Econ 115, but taught as a lecture discussion with limited enrollment.

Enrollment limited to freshmen. Preregistration is required. May not be taken after Econ 116. Prerequisite: Econ 108, or 115 or <117>.

Permission of instructor required.

Similar to Econ 115, but taught as a lecture discussion with limited enrollment.

Enrollment limited to freshmen. Preregistration is required. May not be taken after Econ 116. Prerequisite: Econ 108, or 115 or <117>.

Permission of instructor required.

Similar to Econ 116, but taught as a lecture discussion with limited enrollment.

Enrollment limited to freshmen and sophomores. Preregistration is required. May not be taken after Econ 116. Prerequisite: Econ 108, 110, or 115.

Permission of instructor required.

Similar to Econ 116, but taught as a lecture discussion with limited enrollment.

Enrollment limited to freshmen. Preregistration is required. May not be taken after Econ 116. Prerequisite: Econ 108, 110, or 115.

An introduction to the basic tools of microeconomics to provide a rigorous framework for understanding how individuals, firms, markets, and governments allocate scarce resources. The design and evaluation of public policy.

May not be taken after Econ 108, 110.

An introduction that stresses how the macroeconomy works, including the determination of output, unemployment, inflation, interest rates, and exchange rates. Economic theory is applied to current events.

May not be taken after Econ 111. Prerequisite: Econ 108, 110, or 115.

Core course

Introduction to data analysis from the beginning of the econometrics sequence; exposure to modern empirical economics; and development of credible economic analysis. This course emphasizes working directly and early with data, through such economic examples as studies of environmental/natural resource economics, intergenerational mobility, discrimination, and finance. Topics include: probability, statistics, and sampling; selection, causation and causal inference; regression and model specification; and machine learning and big data.

Prerequisites: ECON 108, 110, 115, or equivalent and familiarity with single variable calculus. Students who have taken 131 will not receive major credit for 117

Core Course

The theory of resource allocation and its applications. Topics include the theory of choice, consumer and firm behavior, production, price determination in different market structures, welfare, and market failure.

After introductory microeconomics and completion of the mathematics requirement for the major or its equivalent. Elementary techniques from multivariate calculus are introduced and applied, but prior knowledge is not assumed. May not be taken after Econ 125.

Core course

Contemporary theories of employment, finance, money, business fluctuations, and economic growth. Their implications for monetary and fiscal policy. Emphasis on empirical studies, financial and monetary crises, and recent policies and problems.

After two terms of introductory economics and completion of the mathematics requirement for the major or its equivalent. May not be taken after Econ 126.

Core Course

Core course

Similar to Econ 121 but with a more intensive treatment of consumer and producer theory, and covering additional topics including choice under uncertainty, game theory, contracting under hidden actions or hidden information, externalities and public goods, and general equilibrium theory. Recommended for students considering graduate study in economics.

After introductory economics, and MATH 118 or 120 or equivalent. May not be taken after Econ 121.

Foundations of mathematical statistics: probability theory, distribution theory, parameter estimation, hypothesis testing, regression, and computer programming. Recommended for students considering graduate study in economics.

Prerequisites: Introductory microeconomics and (i) Math 118, or (ii) Math 120 and Math 222, or (iii) Math 120 and Math 225.                   

An introduction to game theory and strategic thinking. Ideas such as dominance, backward induction, Nash equilibrium, evolutionary stability, commitment, credibility, asymmetric information, adverse selection, and signaling are applied to games played in class and to examples drawn from economics, politics, the movies, and elsewhere.

After introductory microeconomics. No prior knowledge of game theory assumed.

Analysis of contemporary policy problems related to academic under performance in lower income urban schools and the concomitant achievement gaps among various racial and ethnic groups in United States K-12 education. Historical review of opportunity inequalities and policy solutions proposed to ameliorate differences in achievement and job readiness. Students benefit from practical experience and interdisciplinary methods, including a lab component with time spent in a New Haven high school.

Any course offered by Education Studies, or one course in history or any social science, either: Anthropology, Economics, Political Science, Psychology, Sociology.  EDST 110 is preferred, although not required.

Also [EDST271/AFAM469]

Introduction to conceptual tools useful for understanding the strategic choices made by countries, firms, and unions in a globalized world.

After two terms of introductory economics.

[Also GLBL 234b]

The course is designed to introduce students to the concepts and techniques necessary to analyze and implement optimal investment decisions.

The main goal of the course is to understand why firms exist and how firms are used to channel capital towards productive means. Depending on the characteristics of the investment (expected return, risk, maturity); different financial instruments (equity, debt) are used. The course covers the effect of time and uncertainty on decision making, and we will work with concepts such as discounting, stock valuation, asset pricing models, diversification and portfolio choice, and capital structure decisions.

In addition, we will also investigate agency problems (politics) within the firm (managers vs shareholders) and between the firm and other stakeholders (equity vs debt), and how different firm structure and arrangements are used to mitigate them (corporate governance, entrenchment and payout policy).

Lecture notes are closely related to the textbook. The textbook for the course is Corporate Finance, 10th ed., by Ross, Westerfield, and Jaffe (RWJ).

Prerequisite: Introductory Microeconomics and Introductory Macroeconomics.

Analysis of current problems of developing countries. Emphasis on the role of economic theory in informing public policies to achieve improvements in poverty and inequality, and on empirical analysis to understand markets and responses to poverty. Topics include microfinance, education, health, agriculture, intrahousehold allocations, gender, and corruption.

Prerequisite: After introductory microeconomics and introductory econometrics.

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.

After introductory microeconomics.

[Also EVST 340b, F&ES 804b]

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.

[also Econ 546] For IDE students.

The course will follow on from the Competitive Strategy elective into more advanced economics, legal, and policy topics. We will analyze and discuss how the antitrust laws, as applied and interpreted by agencies and courts, place limits on firm behavior. We will study economic theories underlying antitrust enforcement and consider whether legal rules restricting competitive behavior make economic sense and how they affect managerial choices. We will discuss the evidence and reasoning advanced in key antitrust cases and consider how case outcomes may affect social welfare and firm strategies. The course will cover the goals and procedures of the US and EU antitrust agencies.

[Also MGT 589a]

Introduction to game theory and choice under uncertainty. Analysis of the role of information and uncertainty for individual choice behavior, as well as application to the decision theory under uncertainty. Analysis of strategic interaction among economic agents, leading to the theory of auctions and mechanism design. Recommended for students considering graduate study in economics.

After MATH 118, 120, and intermediate microeconomics.

Prerequisites: Intermediate microeconomics and econometrics.
 

Note: Econ 361a “Corporate Finance” is cross-listed with SOM MGT 541a and have spots for only five undergraduates.

[Also MGT 541a]

This course surveys the causes, events, policy responses, and aftermath of the recent global financial crisis.  The main goal is to provide a comprehensive view of this major economic event within a framework that explains the dynamics of financial crises in a modern economy. The course will be blended between lectures (many online), panel discussions with major actors from the crisis, and small group meetings. Course requirements are the preparation of four memos and a final paper with either an extended analysis of a case or a literature review for a specific topic from the syllabus.   The course is cross-listed at SOM, Yale Law School, and Jackson, but is open to all Yale students. Students enrolled outside of SOM should consult their registrar for details on receiving credit. 

Prerequisite: Successful completion of a course in introductory economics.

[Also MGT 890a]

[also CPSC366]

For some developing countries, international trade has brought about rapid growth and large-scale reductions in poverty. Meanwhile for other developing countries, international trade has simply increased inequality and brought little growth. This course will draw on both theoretical models and empirical evidence to better understand the reasons for these very different experiences.

Topics covered will include: standard models of trade, trade and poverty in developing countries, the impact of trade on inequality and growth, the role of firms and multinationals in developing countries, trade policy, foreign direct investment, trade and technology transfer, the Chinese and Indian experience, etc.

Prerequisites: Intermediate microeconomics as well as one econometrics/statistics course.

[Also Econ 702 and GLBL 332a]

Permission of instructor required

This course explores the theory of imperfectly competitive markets, focusing on the interactions among firm behavior, market structure, and market outcomes.

Topics typically covered include price discrimination, pricing of durable goods, strategic choice of product quality, oligopoly competition, collusion, auctions and procurement, predatory behavior, strategic investment, firm entry and exit, product positioning and pricing, and advertising.   

Through class lectures and regular problem sets, students will develop skills in formulating and solving analytical models, often using game theoretic solution concepts. 

Prerequisite: After intermediate microeconomics or equivalent.

Permission of instructor required

This course explores topics in the economics of uncertainty and information. In particular, this course will develop theoretical tools to analyze economic environments in which agents interact facing uncertainty that is decision-relevant. We will use these tools to study more specific problems. Topics include the study of financial markets and how risk is traded; the value of information in markets and within bilateral relationships; and how information asymmetries between market participants (for example, sellers and buyers) shape those relationships. We will study applications to the regulation and boundaries of firms and the design of employment contracts.

Prerequisites: Intermediate Microeconomics (Econ 121 or Econ 125), or Econometrics & Data Analysis I (Econ 131 or equivalent).

In this course we will study many of the most up-to date topics in labor economics and beyond, both from a theoretical and empirical point of view.

This is a one semester advanced course in labor economics for undergraduate students. The objective is to study various aspects of inequality — wage inequality, wealth inequality, market power, employment inequality and household income inequality — and understand their trends over time and underlying sources. We will analyze the role of technological change and automation, of education and skills, of worker-job sorting and marriage sorting, and of search frictions that prevent the labor market from working efficiently. Emphasis will be placed on both understanding theoretical concepts and several workhorse models in labor economics that allow us to analyze sources and changes of inequality with rigor; and on complementary data exercises, using the statistical software Stata, that help the students apply the theories to practice.

Prerequisites: Intermediate Micro (Econ 121) and Econometrics (Econ 131 or 135).

[Also PSYC 304]

This course has an applied econometrics focus. The topics include voting behavior, betting markets, sports, and various issues in microeconomics. The requirements are three empirical papers. The first, worth 20 percent of the grade, is an extension of an existing article, where some of the results are duplicated and then extended. A voting example is provided if a student wants to use it. The second, worth 30 percent of the grade, is more of the same but with no example provided. The third, worth 50 percent of the grade, is a more original paper within the range of topics covered in the course, where data are collected and analyzed using whatever econometric techniques are relevant. For seniors this paper can possibly be the beginning of a senior essay.

https://fairmodel.econ.yale.edu/ec438/index19.htm

Prerequisites: at least one semester of econometrics, preferably two

The purpose of the seminar is for the students to understand what hedge funds do, why they exist and how they are different from other investment vehicles. We will investigate whether hedge funds actually generate excess returns to investors or simply charge high fees and benefit from market risk premiums.

Though the hedge fund industry is cloaked in secrecy, the industry’s primary goal is to add value for investors and make money for managers. Hedge funds are quite diverse in their attempt to achieve these goals. Over the past few decades hedge funds have grown significantly relative to the overall economy. This growth in capital has benefited hedge fund managers but also compressed the opportunity set available for the industry to deliver meaningful performance. Hedge fund revenues (compensation) increase linearly with asset size so managers profit handsomely from asset growth even when investors are hurt by the growth of the industry. Wealth accumulation by hedge fund managers has elevated their market influence but also increased the public and political outrage.
 

This course examines the emerging literature on networks and economic development. This course is divided into four sections: (i) Commitment – how communities can harness their pre-existing social connections to circumvent market imperfections in developing economies. (ii) Labor markets and Migration – how community networks can both facilitate and hinder the mobility of their members. (iii)  Inter-group Interactions – how communities interact with each other in developing economies and societies. (iv) How information spreads, through social connections, in developing economies. Apart from providing a particular perspective on development, an additional objective of this course will be to demonstrate the use of economic theory in informing empirical research.

Prerequisites: Intermediate Microeconomics, Introductory Econometrics and Data Analysis.

Also [Econ 733]

Permission of instructor required

Examination of investment management in theory and practice. Discussion of asset allocation, investment strategy, and manager selection from the perspective of an institutional investor. Focus on the degree of market efficiency and opportunity for generating attractive returns.

Interest in monetary and financial policy has increased tremendously in the wake of the great financial and economic crisis (GFC) which started in 2008. The conduct of monetary policy and of financial regulation is very important for the economy as a whole. The past hundred years of monetary and financial policy making have been characterized by continuous changes in the contours of policy making by central banks. What developments in prevailing economic conditions and in the changes in economic thought and understanding led to the changes observed in central banking practice? Why do financial crises keep recurring in market economies? The period prior to the GFC had been characterized by many as “The Great Moderation”.  What monetary policies led to such economic stability followed by the collapse in 2007-08? These are the kind of issues that this course is designed to investigate.

It explores some of the theoretical and policy perspectives and empirical debates in central banking. Each week we will discuss illustrative works and/or works that engage the main arguments, often with an institutional focus. At the end of the course students should be able to appreciate better the practice of central banking as it has evolved. There should also be better understanding of the ongoing global economic and financial crisis.

Prerequisite: Intermediate level micro and macroeconomics (Econ 121 or 125; Econ 122 or 126).

[Also EP&E 254; GLBL 331]
 

Permission of Instructor Required

This course is divided into two parts. The goal of the first part is to understand the efficiency and distributive consequences of institutions governing human relationships. Efficiency concerns with the size of the “pie”; different institutions will generate a bigger “pie” than others. Distribution concerns with who gets a bigger piece of the “pie”. The goal of the second part is to understand why “bad” institutions persist over time and what can we do to change from bad/old institutions into good/new institutions.

Economics concerns itself primarily with the size of the “pie”. However, whether an institution (law) is put into place is decided by a small group of people. Usually they will select the institution that gives them a big piece of the “pie” regardless of the total size of the “pie”, thus the importance of understanding the politics that go into institutional design. Moreover, once an institution is put into place it is hard to change it. Hence, history and the choices made by others in the past affect our choices of institutions today, which in turn affect the size of the “pie”.

Prerequisite: Intermediate Micro (Econ 121 or 125) or Intermediate Macro (Econ 122 or 126). It also requires a course in probability in statistics (Econ 131 or 135).

[Also EP&E 221b]

Financial economics with special focus on the role of information and the use of markets as forecasting devices. 

The course introduces students to the ideas and theoretical tools that economists use to understand the functioning of large markets and their design for prediction purposes. Once familiar with the key concepts, students learn to build intuition that help understand empirical facts.

Topics include choice under uncertainty, asset valuation in multi-period models, arbitrage theory, market microstructure, information aggregation, probability elicitation, prediction markets.

Prerequisites: ECON 121, and completion of all MATH requirements of the economics major. A course covering basic probability theory such as ECON 131 or ECON 135 is recommended.

This multidisciplinary class is an exploration of the background of today’s bestselling medicines, their huge commercial impact, and the companies that created them. It focuses on the most compelling aspects of drug development and company formation in the context of topical issues like cancer treatment, gene editing, stem cell therapy, the opioid epidemic, and drug pricing controversies.

Special focus will be paid to valuing assets and companies in the biotechnology and pharmaceutical industries. We will read everything from scientific papers to business school cases as we explore these interesting issues. We will have occasional guests from industry and the investment community to aid us in our study.

Prerequisites: Introductory or intermediate microeconomics OR introductory or intermediate Biology, Molecular Biology, Chemistry or Biomedical Engineering

[Also BENG 403]

How strategies for economic development have changed over time and how dominant strands in development theory and practice have evolved. Students trace the influence of the evolution in thinking on actual changes that have taken place in successful development strategies, as practiced in fast growing developing countries, and as illustrated in case studies of fast growth periods in Japan, South Korea, Brazil, China, and India.

Prerequisites: introductory microeconomics and macroeconomics.
 

[also GLBL 233/633 & EPE 232]
 

Permission of Instructor Required

The course evaluates philosophical arguments for (and against) equality, using tools of economic theory. We begin with the theory of John Rawls, the central contemporary philosophical attempt to argue for the desirability of equality. We examine critiques of Rawls from the political right, left, and center (Nozick, G.A. Cohen, Sen). We proceed to a second major philosophical proposal for equality, of Ronald Dworkin, who introduced the concept of personal responsibility into egalitarian theory. We develop a formal model of the original position/veil of ignorance, and evaluate the proposals of Rawls and Dworkin. We argue that the veil of ignorance thought experiment implies considerably less equality than these authors thought it would. A theory of equality of opportunity is then proposed, which can be viewed as a reaction to the criticisms made of Rawls and Dworkin.

We discuss the classical Marxist critique of capitalism, based upon the view that exploitation is central to it, and the ideas of market socialism and property-owning democracy. We conclude the course with a discussion of the degree and nature of inequality in the US in the 20th century and today, and the relationship between inequality and the financial crisis of 2008.

The essential prerequisite is intermediate microeconomic theory. Assignments consist of problem sets and short essays.

[Also EP&E227b and PLSC343b]

Permission of instructor required.

This seminar seeks to sharpen students’ research, writing, and oral presentation skills through examination of several related questions:

• How do law and economic theory define and conceptualize economic discrimination.
• How adequately does the behavior of discriminators implied by economic models describe behaviors documented in court cases and government hearings?
•  To what extent do economic theory and econometric techniques aid our understanding of marketplace discrimination in actual practice?

Topics include: Racial, ethnic, and gender discrimination in labor markets, housing markets, education, and financial services such as mortgage lending and insurance redlining. Demographic groups covered in the case material include Asian-, African-, Hispanic-, and Native Americans. Reading materials are drawn from written court opinions, congressional hearings, and academic literatures including economics, law, history, African American Studies, Ethnic Studies, and Gender Studies.

Assignments & Grades: Students’ grades will be based on three criteria:

1. Aterm paper of 10 to 15 pages due at the end of the semester reading period
2. Each student (once during the semester and likely teaming with another student), will (following instructor’s remarks) open a general discussion of that week’s assignments; student’s opening remarks will be based on a written two page critique of week’s assignment with a set of written questions student will use to lead the general discussion during that class session, written critique and questions to be turned in to the professor at beginning of class;
3. Attendance and participation in seminar discussions throughout the semester. The final paper will account for 50% of the course grade, each of the other factors 25%.

Prerequisites: 1. Economics 115 or equivalent; 2. any 200 level course or higher in any of following: Economics, African American studies, Ethnicity, Race, & Migration, Women’s, Gender & Sexuality Studies

[Also EP&E286b]

The course focuses on systemic risk, banking crises, financial stability and macroprudential policies. An emphasis will be on systemic risk and prudential policies in peripheral economies.  Peripheral economies is defined here as peripheral European economies and emerging economies.

The course will start with an overview of the concepts of systemic risks and financial stability.  Underlying reasons for banking crises which are (1) liquidity (fractional banking), (2) structural weakness and (3) leverage cycles.  First is liquidity and bank runs and the role of the Central Bank as a liquidity provider and a lender of last resort. Before the last Global Financial Crises the underlying causes of financial crises in emerging economies was frequently structural weakness.  Second we will look at the history of financial crises in emerging economies to gain an understanding of banking crises arising from structural weakness. Last we will look at the theory of credit and leverage cycles and some case studies of banking crises that seem to be caused by excessive growth in credit and leverage.

The next stage of the course will focus on most pressing threat to financial stability for peripheral economies. Capital surges and sudden stops. Excessive pro-cyclical capital flows may increase financial instability and this is a potential risk that emerging economies and peripheral economies face as they open up capital markets to the world.  We will look at the risks associated with excessive capital flows, empirical evidence and innovating efforts to manage excessive pro-cyclical capital flows.

In the third face of the course we will look at the Global Financial Crises of 2007-2008.  Underlying causes and how they unfolded. The Sovereign debt crises that followed, including the crises in Greece. How regulation and supervision may have failed and how it is being overhauled now, including both new microprudential policy and the new macroprudential policies.

We will end the class with capital flow management which is one of the more pressing issues for peripheral and emerging economies that are opening up their capital account.  Many countries have used prudential policies in an attempt to manage excessive pro-cyclical capital flows, such as Korea, Brazil and Chile. We will study the motivation for these policies, empirical evidence and the most recent research in this area.

Prerequisite: Introductory microeconomics and macroeconomics.

[Also GLBL311]

Students deciding to write one-term senior essays by enrolling in ECON 491, or two-term senior essays by enrolling in ECON 491 and 492, must choose their topics and advisers by Monday, September 30, 2019. One-term senior essays are due on Monday, December 2, 2019 by 4:30 pm. Two-term senior essays are due by 4:30 pm on Wednesday, April 1, 2020. Essays should be submitted electronically to the Economics Department (qazi.azam@yale.edu) by the due date. Late essays will not be accepted without a dean’s excuse. Advisers are chosen with the assistance of the DUS. The format and character of the departmental senior essay may vary to suit the interest of the student and the demands of the topic, but it is expected that the tools and concepts of economic analysis will be employed and that the essay will contain original research. Paper lengths may vary; the normal expectation is thirty pages. Students may receive up to two credits for the senior essay, though it counts as only one departmental seminar whether one or two terms are taken. Meetings for seniors to discuss the senior essay guidelines and requirements will be held on Tuesday August 27, 2019 at 12:15 pm. and Wednesday, August 28, 2019 at 4:00 pm. in Room 106, 28 Hillhouse Avenue. Seniors planning to write either a one-term or a two-term senior essay should attend one of these meetings. Details regarding calculation of Distinction will be discussed and senior essay guidelines will be distributed.

Senior essay prospectus forms are due Monday, September 30, 2019. Students who do not turn the prospectus in on time will not be permitted to write an essay.