This First-Year Seminar will investigate how data and economics can be used to understand and solve some of the most pressing contemporary social issues in the United States. Topics include equality of opportunity, education, health, climate change, criminal justice, and discrimination. In the context of these topics, the course will provide an introduction to some basic economic concepts and data analysis techniques. No prior knowledge of economics or statistics is assumed. The course will include guest lectures from academics and practitioners who will discuss real-world and policy applications.

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, or <117>.

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

Enrollment limited to freshmen 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, or <117>.

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.

Enrollment limited in ECON 122a. 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

Continuation of ECON 135 with a focus on econometric theory and practice: problems that arise from the specification, estimation, and interpretation of models of economic behavior. Topics include classical regression and simultaneous equations models; panel data; and limited dependent variables. Recommended for students considering graduate study in economics.

After Econ 135 or Stat 241 and 242.

Application of economic principles to the study of the U.S. health care system. Emphasis on basic principles about the structure of the U.S. system, current problems, proposed solutions, and the context of health policy making and politics.

After introductory microeconomics. May not be taken after Econ <467>.

The growth of the American economy since 1790, both as a unique historical record and as an illustration of factors in the process of economic development. The American experience viewed in the context of its European background and patterns of industrialization overseas.

After introductory microeconomics.

[Also Hist 135b]

European economic growth and development from the late seventeenth century through the first stages of the British industrial revolution. The role of institutional development, trade and imperialism, agricultural improvements, and industrialization. Particular attention to comparisons between Britain and other parts of Europe.

An overview of the ideas, methods, and institutions that permit human society to manage risks and foster enterprise. Description of practices today and analysis of prospects for the future. Introduction to risk management and behavioral finance principles to understand the functioning of securities, insurance, and banking industries.

Prerequisites: After two terms of introductory economics.

The essentials of energy and environmental economics, with applications. Analysis of core topics in public goods, intertemporal choice, uncertainty, decision theory, and exhaustible resources. Applications include energy security, nuclear power, the relationship between nuclear power and nuclear proliferation, and climate change.
Enrollment limited. Prerequisite: two terms of introductory economics.

Economic development in China since the late 1970s. Emphasis on factors pushing China toward a transition from its modern export- and investment-led development model to a pro-consumption model. The possibility of a resulting identity crisis, underscored by China’s need to embrace political reform and by the West’s long-standing misperceptions of China.

Prerequisite: Introductory macroeconomics.

[Also MGT 991a, EAST 338a, and GLBL 318a]

An introduction to general equilibrium theory and its extension to equilibria involving uncertainty and time. Discussion of the economic role of insurance and of intertemporal models, namely, the overlapping generations model and the optimal growth theory model. Recommended for students considering graduate study in economics.

After MATH 118 or 120, and intermediate microeconomics.

Topics related to capital markets, with emphasis on the financial crisis of 2007–2008. The design, pricing, and trading of corporate bonds, credit derivatives, and money market instruments; bond restructuring, bond ratings, and financial crises; basic tools used to address such issues, including fixed income mathematics, binomial option pricing, and swaps.

Prerequisites: intermediate microeconomics and econometrics.
 

Note: Econ 360a “Capital Markets” is cross-listed with SOM MGT 947a and have spots for only five undergraduates.

[Also MGT 947a]

Prerequisites: Intermediate microeconomics and econometrics.
 

[Also MGT 541b]

Introduction to modern macroeconomic models and how to use the models to examine some of the key issues that have faced monetary policymakers during and after the global financial crisis of 2008–2009.    

Prerequisites: Intermediate level macroeconomics (Econ 122 or 126) and introductory econometrics.

Permission of instructor required

The aim of the course is that the students develop an understanding of the main implications of increasing integration of the world economy. By describing the various ways that countries are affected by each other — through trade linkages, multinational production, or financial markets — the course will try to explain how these forces affect the decisions of individuals and firms.

The course will be divided in two parts. The first part will be more like a traditional lecture class and will focus on theoretical models and empirical facts. The second part will be more like a seminar course with presentations by students and wide discussion on topics in international finance and international macroeconomics.

There will be three problem sets, a presentation, and a final term paper. The first part of the course will provide important tools for the students in order to prepare their presentation and their term paper. In the presentations, students will put forth the main arguments and ideas that will be part of their term paper.

Prerequisite: After intermediate macroeconomics or equivalent

[Also GLBL 310]

Permission of instructor required

This course introduces the major topics of economics of innovation. It intends to provide students with a solid understanding of theoretical models of the effects of market power on the intensity of innovative activity as well as the alternative incentive mechanisms such as prizes, patents, copyrights and trade secrecy. Topics include economics of the intellectual property (IP) protection system; IP licensing and research joint ventures; enforcement and litigation; strategic choices in innovation & competition; the value of innovation & patent races; process and product innovation; the diffusion of knowledge; venture capital; interaction between public and private sector innovation; network effects; current policy issues regarding the conflicts between IP rights and antitrust regulation.

This course will often motivate the analysis of economic concepts using case studies, empirical facts and consider simple economic models to explain individuals behavior. The primary tool for understanding firm, consumer or government choices is the maximization paradigm which assumes individuals behave as if they maximize an objective function; such function may represent the level of profits, happiness or social welfare. Thus, much of the course will be devoted to applying that paradigm to various settings. The academic objective of this course is to elaborate students’ skills to use theoretical tools to formulate and solve economic problems. The goal is for the students to interpret the economic aspects of innovative activity and IP protection system.

The course grade will be a weighted average of the followings: Four problem sets (20%), Case study/attendance/participation (20%), Midterm exam (30%), Final exam (30%).

Prerequisites: intermediate microeconomics or equivalent

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 AMTH 437 / EENG437/S&DS 430]

This is an advanced lecture/seminar course covers basic univariate and multivariate models and methods used to analyze …nancial and economic time series data and panel time series data. Topics include: classic linear models; serial dependence, autocorrelation in error variances (ARCH, GARCH); methods that allow for nonlinearity, tail dependence, comovements, conditional value at risk, fat-tails, nonstationarity; vector autoregressive models; factor models; Markov switching, latent factors, measurement errors, stochastic
volatility; empirical asset pricing models. The aim of the course is to help students to write their senior essays and to start their own research in economics and …nance.

Prerequisites: ECON 117 and 123, or ECON 135 and 136.

“Introduction to the different roles and responsibilities of modern central banks, including the operation of payments systems, monetary policy, supervision and regulation, and financial stability. Discussion of different ways to structure central banks to best manage their responsibilities.

[Also MGT 628/GLBL 308]

This course aims to serve two purposes. First, you will learn how to think systematically about competition and strategy by using microeconomics. Second, you will learn how to conduct sensible data analysis at the individual firm level, using statistical tools in Excel and Stata.
 

Goals: You will analyze real data with economic theory and statistical methods. Data become meaningful with the help of logical thinking; mathematical fantasies become reality when fleshed out with careful empirical analysis. Combining these pieces of knowledge is challenging and rewarding, because the act and process of modeling and estimation embody the intellectual discipline of economics as well as a set of useful skills for personal and professional lives.

Structure: Wednesday sessions are lectures; Friday sessions are in-class exercises. In Wednesday lectures, I will teach key economic concepts and provide background knowledge for the understanding of the research papers. In Friday exercises, you will engage in data analysis using Excel and Stata under my guidance. No separate discussion sections are planned.

Materials: You will “get your hands dirty” with the datasets, the models, and the methods that I have been using in my own recent projects, and hence the course materials represent the cutting edge of academic research rather than old textbook examples. Before Coming to the First Class: You should skim through the following research papers, which constitute the core of this class and are available on my personal website at https://sites.google.com/site/mitsuruigami.
 

Prerequisite: Introductory Microeconomics, but some familiarity with Statistics and Econometrics will be helpful

Prerequisites: Math 118 or 120 or instructor’s consent.

The purpose of the seminar is for the students to gain an understanding of the complex U.S. banking system. The banking industry can be the engine of growth for the economy but can also be a source of instability and taxpayer subsidies. Society must weigh the economic benefits of a strong financial sector with the incentives given to bank shareholders and managers with material upside and social downside. The special economic role of banks needs to be studied to understand their benefits, limitations and shortcomings. Society needs to take an active role to encourage the economic benefits provided by banks yet avoid panics. Government involvement and regulation should foster social and economic goals but not stifle growth. Given the leverage that banks use combined with illiquid and opaque assets this challenge is meaningful. These goals involve politicians, academics and market participants with very different incentives. Technology has greatly changed institutions but not the functions of the financial sector. We will evaluate the importance of banks, discuss their history and potential structural improvements.

Prerequisites: Intermediate microeconomics and econometrics.

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.

The class is an exploration of the scientific 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, DNA sequencing, stem cell therapy, and drug pricing controversies.

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

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]

Permission of instructor required

Social networks are important for finding jobs, deciding which technologies to adopt, determining how to vote, and protecting against unemployment and crop failure. Such networks may be even more crucial in developing countries where individuals lack access to social security, health insurance, the internet, and other sources of information and social safety nets. Much quantitative work in economics uses data on characteristics of individual or households. While interactions between these individuals have important ramifications for economic outcomes, the study of these interactions necessitates different strategies of data collection and analysis.

We will discuss social networks as conduits for the enforcement of monetary flows including: informal insurance, mobile money, and vote-buying. Next we will discuss social networks as conduits for information including: agricultural technology adoption, adoption of microfinance, and adoption of health-related technologies. We will end by looking at interactions which may mix both information and enforcement, including default behavior in microfinance and job referrals

Permission of instructor required

Empirical microeconomists take economic theories and methodologies out into the world, applying them to interesting questions of individual behavior and societal outcomes.  This upper-level seminar will start with an overview of the field and its methodologies, followed by foundational material in economic theory and econometric identification.  We will then spend the bulk of the semester addressing substantive areas of inquiry such as environmental effects on health, the fetal origins hypothesis, and the economics of crime, gender, and race.

Most of our time will be devoted to close reading of research papers, including discussion of the relative merits of particular methodologies.  Students will participate actively in class discussion, engage with cutting-edge research, evaluate empirical data, and write an analytical paper.  The goal of the course is to enable students to develop and enhance their own skills and interests as applied microeconomists.
 

Prerequisites: Intermediate Microeconomics or equivalent, and Econometrics.

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.