ECON 17800. Public Policy Analysis. 100 Units.

This course reviews and augments the basic tools of microeconomics developed in ECON 20000 and applies these tools to policy problems. We examine situations in which private markets are likely to produce unsatisfactory results, suggesting a potential rationale for government intervention. Our goal is to allow students to comprehend, develop, and respond to economics arguments when formulating or evaluating public policy.

Instructor(s): J. Leitzel     Terms Offered: Winter
Prerequisite(s): PBPL 20000 or ECON 20000
Note(s): PBPL 22100-22200-22300 may be taken in or out of sequence. Not intended for students majoring in public policy who are planning to specialize in economics or to take advanced economics courses; those students should meet with the program director to arrange an alternative.
Equivalent Course(s): PBPL 22200

ECON 19800. Introduction to Microeconomics. 100 Units.

By way of economic theory, applications, and contemporary issues, this course treats (1) the behavior and decision making on the part of individuals, business firms, and governments; and (2) the function of costs, prices, incentives, and markets in the American economy. We discuss contemporary topics (e.g., distribution of income, the environment, education, sports, health care).

Instructor(s): A. Sanderson, J. List     Terms Offered: Autumn, Spring

ECON 19900. Introduction to Macroeconomics. 100 Units.

By way of theory and public policy applications, this course covers current major domestic and international macroeconomic issues in the U.S. economy, including the determination of income and output, inflation, unemployment, and economic growth; money, banking, and the Federal Reserve System; federal spending, taxation, and deficits; and international trade, exchange rates, and the balance of payments.

Instructor(s): A. Sanderson     Terms Offered: Autumn, Winter

ECON 20000. The Elements of Economic Analysis I. 100 Units.

This course develops the economic theory of consumer choice. This theory characterizes optimal choices for consumers given their incomes and preferences, as well as the relative prices of different goods. This course develops tools for analyzing how these optimal choices change when relative prices and consumer incomes change. Finally, this course presents several measures of consumer welfare. Students learn how to evaluate the impact of taxes and subsidies using these measures.

Terms Offered: Autumn, Spring
Prerequisite(s): Math 15300, 16300 or Math 19520. First-year students must also pass the placement exam or complete Econ 19800.

ECON 20010. The Elements of Economic Analysis I: Honors. 100 Units.

 The scope of the honors section is the same as the standard section, but it covers material at greater depth and using more sophisticated mathematical methods. This course develops the economic theory of consumer choice. This theory characterizes optimal choices for consumers given their incomes and preferences, as well as the relative prices of different goods. This course develops tools for analyzing how these optimal choices change when relative prices and consumer incomes change. Finally, this course presents several measures of consumer welfare. Students learn how to evaluate the impact of taxes and subsidies using these measures.

Terms Offered: Autumn, Spring
Prerequisite(s): MATH 15300, 16300 or 19520. First year students must also pass the placement test or complete ECON 19800.

ECON 20100. The Elements of Economic Analysis II. 100 Units.

This course is a continuation of ECON 20000. The first part of this course discusses markets with one or a few suppliers. The second part focuses on demand and supply for factors of production and the distribution of income in the economy. This course also includes some elementary general equilibrium theory and welfare economics.

Terms Offered: Autumn, Winter
Prerequisite(s): ECON 20000 or 20010

ECON 20110. The Elements of Economic Analysis II: Honors. 100 Units.

The scope of the honors section is the same as the standard section, but it covers material at greater depth and using more sophisticated mathematical methods. This course is a continuation of ECON 20000/20010. The first part of this course discusses markets with one or a few suppliers. The second part focuses on demand and supply for factors of production and the distribution of income in the economy. This course also includes some elementary general equilibrium theory of welfare economics.

Terms Offered: Autumn, Winter
Prerequisite(s): ECON 20000 or 20010

ECON 20200. The Elements of Economic Analysis III. 100 Units.

ECON 19900 is required of students without a prior macroeconomics course. As an introduction to macroeconomic theory and policy, this course covers the determination of aggregate demand (i.e., consumption, investment, the demand for money); aggregate supply; and the interaction between aggregate demand and supply. We also discuss activist and monetarist views of fiscal and monetary policy.

Terms Offered: Winter, Spring
Prerequisite(s): ECON 20100 or 20110

ECON 20210. The Elements of Economic Analysis III: Honors. 100 Units.

 The scope of the honors section is the same as the standard section, but it covers material at greater depth and using more sophisticated mathematical methods. ECON 19900 is required of students without a prior macroeconomic course. As an introduction to macroeconomic theory and policy, this course covers the determination of aggregate demand (i.e., consumption, investment, the demand for money); aggregate supply; and the interaction between aggregate demand and supply. We also discuss activist and monetarist views of fiscal and monetary policy.

Terms Offered: Winter, Spring
Prerequisite(s): ECON 20100 or 20110

ECON 20300. The Elements of Economic Analysis IV. 100 Units.

This is a course in money and banking, monetary theories, the determinants of the supply and demand for money, the operation of the banking system, monetary policies, financial markets, and portfolio choice.

Terms Offered: Autumn, Spring
Prerequisite(s): ECON 20200 or 20210

ECON 20310. The Elements of Economic Analysis IV: Honors. 100 Units.

 The scope of the honors section is the same as the standard section, but it covers material at greater depth and using more sophisticated mathematical methods. This is a course in money and banking, monetary theories, the determinants of the supply and demand for money, the operation of the banking system, monetary policies, financial markets, and portfolio choice.

Instructor(s): Autumn, Spring
Prerequisite(s): ECON 20200 or 20210

ECON 20700. Game Theory and Economic Applications. 100 Units.

Either ECON 20700 or 20710 may be used as an economics elective, but not both. This course introduces the basic ideas and applications of game theory. Topics include models of games in extensive and strategic form, equilibria with randomization, signaling and beliefs, reputation in repeated games, bargaining games, investment hold-up problems, and mediation and incentive constraints.

Instructor(s): R. Myerson     Terms Offered: Spring
Prerequisite(s): ECON 20100

ECON 20710. Game Theory: A Formal Approach. 100 Units.

Either ECON 20700 or 20710 may be used as an economics elective, but not both. This course is a rigorous introduction to game theory with an emphasis on formal methods. Definitions of a game, preferences, chance moves, and Nash Equilibrium and its extensions are provided. Applications are given to classical games (such as chess), bargaining, and economic models. This course is intended for students who are planning to study economics at the graduate level and for students with an interest in a mathematical approach to basic issues in the social sciences.

Instructor(s): H. Sonnenschein     Terms Offered: Autumn
Prerequisite(s): ECON 20100 and MATH 20300, or consent of instructor

ECON 20800. Theory of Auctions. 100 Units.

In part, this course covers the analysis of the standard auction formats (i.e., Dutch, English, sealed-bid) and describes conditions under which they are revenue maximizing. We introduce both independent private-value models and interdependent-value models with affiliated signals. Multi-unit auctions are also analyzed with an emphasis on Vickrey's auction and its extension to the interdependent-value setting.

Instructor(s): P. Reny     Terms Offered: Winter
Prerequisite(s): ECON 20100

ECON 20900. Econometrics: Honors. 100 Units.

The topics are essentially the same as those covered in ECON 21000, but this foundations course in econometrics gives a more systematic introduction to the application of statistical theory to economic applications. This course is intended for students who are planning to study economics at the graduate level.

Terms Offered: Winter, Spring
Prerequisite(s): ECON 20300, and STAT 24400 or 24500; or consent of instructor

ECON 21000. Econometrics. 100 Units.

Required of students who are majoring in economics; those students are encouraged to meet this requirement by the end of their third year. This course covers the single and multiple linear regression model, the associated distribution theory, and testing procedures; corrections for heteroskedasticity, autocorrelation, and simultaneous equations; and other extensions as time permits. Students also apply the techniques to a variety of data sets using PCs.

Terms Offered: Autumn, Winter, Spring
Prerequisite(s): ECON 20200, STAT 23400, and MATH 19620 or 20000

ECON 21100. Econometrics B. 100 Units.

This course provides students with a basic understanding of how econometrics, economic theory, and knowledge of institutions can be used to draw credible inferences on economic relationships. Topics include multivariate linear regression, causal inference, omitted variables bias, fixed and random effects models, simultaneous equation models, the propensity score, and discrete choice models. Students have the opportunity to apply these techniques to empirical questions in industrial organization, as well as in environmental, labor, and public economics.

Instructor(s): A. Hortacsu and D. Neal     Terms Offered: Spring
Prerequisite(s): ECON 20900 or 21000

ECON 21200. Time Series Econometrics. 100 Units.

This course examines time series models and the testing of such models against observed evolution of economic quantities. Topics include autocorrelation and heteroskedasticity in time series applications of the general linear model. Students see the applications of these time series models in macroeconomics and finance.

Instructor(s): P. Bondarenko     Terms Offered: Autumn
Prerequisite(s): ECON 20900 or 21000

ECON 21400. Applied Static and Dynamic Optimization in Economics. 100 Units.

The goal of this course is to assemble and review the major mathematical techniques that will be used throughout the first year of graduate core classes. The "treatment" will be rigorous, but it will be full of examples and applications. Topics include constrained optimization with equality and inequality constraints, optimal control, and dynamic programming. Applications will be drawn from the topics covered in ECON 20000 through ECON 20300. The emphasis is in presenting the students with the mathematical methods that are required to pursue coursework at the graduate level.

Instructor(s): V. Lima     Terms Offered: Spring
Prerequisite(s): MATH 20300 and ECON 20300.

ECON 21800. Experimental Economics. 100 Units.

This course provides the necessary tools to be an avid consumer of the experimental literature and instructs students on how to become a producer of that literature. Topics include a summary of recent experimental findings and details on how to gather and analyze data using experimental methods.

Instructor(s): J. List     Terms Offered: Spring
Prerequisite(s): ECON 20100
Equivalent Course(s): ECON 41100

ECON 22200-32000. Topics in American Economic History.

ECON 22300. Business Ethics in Historical Perspective. 100 Units.

This course examines the way that religious and political movements affect the ethics of business. We focus on contemporary issues and relate them to long cycles in religiosity in the United States, long-term factors influencing political images of business, and factors influencing domestic conceptions of the proper economic relationships between the United States and the rest of the world.

Instructor(s): R. Fogel     Terms Offered: Winter
Prerequisite(s): ECON 20100
Note(s): College students must use the undergraduate number to register.
Equivalent Course(s): ECON 32300,BUSF 38114

ECON 22500-32200. Population and the Economy.

ECON 22600. Innovators. 100 Units.

Economists believe that innovation is a primary source of economic growth. Yet although most innovations are made by individuals or small groups, until recently economists have not studied how those exceptional people produce their discoveries. Recent research has shown that there are two very different types of innovators, who have different goals and follow different processes. This course surveys this research, examining the careers and innovations of important practitioners in a range of modern arts, including painters, novelists, sculptors, poets, movie directors, photographers, songwriters, and architects, as well as entrepreneurs and scientists. The material covered in this course adds a new dimension to our understanding of creativity and of how innovators in many different activities produce new forms of art and science.

Instructor(s): D. Galenson     Terms Offered: Autumn
Prerequisite(s): Econ 20100
Equivalent Course(s): ECON 42900

ECON 22650. Creativity. 100 Units.

This seminar examines recent research on how creative people innovate in a wide range of intellectual activities. The main project for the course is a term paper that analyzes the creative life cycle of one or more innovators of the student’s choice, using both quantitative and qualitative evidence. Students present their research in progress for discussion. The seminar is designed to give students all the tools needed to do this research, including choosing a subject, finding and using an appropriate data set, and negotiating the relevant scholarship.

Instructor(s): D. Galenson     Terms Offered: Winter
Prerequisite(s): ECON 19800 or consent of instructor
Equivalent Course(s): ECON 42800

ECON 22700. Economics and Demography of Marketing. 100 Units.

This course examines the factors that influence long-term, intermediate-term, and short-term variations in the demand for both consumer and producer commodities and services: the evolution of markets and methods of distribution in America since 1800, variations in the life cycles of products, the role of demographic factors in analysis of product demand, and the influence of business cycles on product demand. Much attention is given to the use of existing online databases for the estimation of a variety of forecasting models.

Instructor(s): R. Fogel     Terms Offered: Spring
Prerequisite(s): ECON 20000 and 20100, or equivalent
Equivalent Course(s): ECON 32400,BUSF 37104

ECON 23000. Money and Banking. 100 Units.

This course covers economic theories and topical issues in money and banking. We discuss such "traditional" topics as the quantity theory, the Phillips curve, and the money creation process. We also investigate models of bank runs and financial crises, the tradeoff between rules and discretion, and the New Macroeconomic Synthesis of New Classical. Other topics include New Keynesian approaches to modeling money and monetary policy, practical and institutional issues in European and U.S. monetary policy, and the 2008 financial crisis.

Instructor(s): H. Uhlig, Staff     Terms Offered: Spring
Prerequisite(s): ECON 20300

ECON 23200. Topics in Macroeconomics. 100 Units.

This course focuses on the use of dynamic general equilibrium models to study questions in macroeconomics. Topics include long-run growth and dynamic fiscal policy (Ricardian equivalence, tax smoothing, capital taxation), labor market search, industry investment, and asset pricing. On the technical side, we cover basic optimal control (Hamiltonians) and dynamic programming (Bellman equations).

Instructor(s): N. Stokey     Terms Offered: Winter
Prerequisite(s): ECON 20300 and MATH 20300

ECON 23210. Topics in Applied Macroeconomics. 100 Units.

This course will draw from classic and recent journal articles in an effort to introduce current issues and controversies in the broad field of macroeconomics. Topics in the past have included level accounting across countries, labor supply, real business cycle theory, wedge accounting, unemployment, government spending multipliers, rational bubbles, and money as a medium of exchange. The course will look at empirical evidence through the lens of economic models. The course will be technically rigorous and is aimed at advanced undergraduates. It should provide good ideas for students thinking of writing a B.A. thesis on a topic in macroeconomics.

Instructor(s): R. Shimer.     Terms Offered: Autumn
Prerequisite(s): ECON 20900 or 2100, and MATH 20300

ECON 24000. Labor Economics. 100 Units.

Topics include the theory of time allocation, the payoffs to education as an investment, detecting wage discrimination, unions, and wage patterns. Most of the examples are taken from U.S. labor data, although we discuss immigration patterns and their effects on U.S. labor markets. Some attention is also given to the changing characteristics of the workplace.

Prerequisite(s): ECON 20100 and 21000

ECON 24400. Pay and Performance. 100 Units.

This course examines the relationships between education, types of pay, and careers. After a basic introduction to the roles of education, training, and ability in human capital formation, we develop a theory of how workers and firms determine types of pay (e.g., salary, piece rates, bonuses, options) and career paths within and between firms. Other topics include incentives and insurance in pay determination, hiring, turnover, benefit levels and their relationship to wages, and compensation levels over the career.

Instructor(s): K. Ierulli     Terms Offered: Winter
Prerequisite(s): ECON 20100

ECON 24500. Women, Work and Property Rights. 100 Units.

The shifting presence of women between home and cottage industry to factory and office will be examined in the light of economic analysis. We will look at models of labor supply, matching models of marriage, and household production. Some international comparisons will be introduced, but the main backdrop will be the economic and legal history of women's work experience in the United States.

Instructor(s): Tsiang, G.     Terms Offered: Winter
Prerequisite(s): Econ 20000

ECON 25000. Finance. 100 Units.

This course develops the tools to quantify the risk and return of financial instruments. These are applied to standard financial problems faced by firms and investors. Topics include arbitrage pricing, the capital asset pricing model, and the theory of efficient markets and option pricing.

Instructor(s): P. Braun     Terms Offered: Autumn, Winter, Spring
Prerequisite(s): ECON 20300 and STAT 23400; and prior or concurrent registration in ECON 21000

ECON 25100. Financial Economics; Speculative Markets. 100 Units.

This course focuses on the description, pricing, and hedging of basic derivative claims on financial assets. We study the characteristics, uses, and payoffs of a variety of contracts where the underlying claims include commodities, foreign currencies, bonds, stocks, or stock indices. We examine contracts such as options, swaps, and futures contracts. We use a unified approach (the technique of portfolio replication) to study pricing of these claims. Students also gain an understanding of strategies for hedging of the risks inherent in holding these derivative claims.

Instructor(s): F. Alvarez     Terms Offered: Spring
Prerequisite(s): ECON 20100 and STAT 23400

ECON 25500. Topics in Economic Development. 100 Units.

This course will begin with an overview of cross-country growth outcomes. We then turn to microeconomics studies in economic development. Initially, the perspective will historical and international in scope, comparing resource as well as institutional endowments, to growth outcomes. Subsequently, particular challenges to sustained growth will be addressed, with topics including the effects technical change on the the growth and integration of internal markets, micro finance, as well as education, health, and the interaction of emerging economies with global markets.

Instructor(s): G. Tsiang     Terms Offered: Winter
Prerequisite(s): ECON 20100

ECON 25620. Topics in Latin American Economies. 100 Units.

This course examines current issues in the economies of Latin America. Topics include sources of economic growth, commercial policy, regional economic integration, inflation and stabilization, fiscal deficits, the choice of an exchange rate regime, and debt problems.

Instructor(s): A. Menendez     Terms Offered: Spring
Prerequisite(s): ECON 20300
Equivalent Course(s): PBPL 25620,PPHA 37500

ECON 26010. Public Finance. 100 Units.

This course examines the role of the government in the U.S. economy. We consider the efficiency and equity arguments for government intervention and analyze empirical evidence on the effects of tax and expenditure policy on economic outcomes. Topics include government-provided goods (with a focus on education), social insurance programs, government provision of health insurance, welfare programs, and tax policy. The effects of potential future policy changes (e.g., vouchers in K–12 education, individual accounts for Social Security) are also discussed.

Terms Offered: Spring
Prerequisite(s): ECON 20300 or consent of instructor

ECON 26500. Environmental Economics. 100 Units.

This course applies theoretical and empirical economic tools to environmental issues. We discuss broad concepts such as externalities, public goods, property rights, market failure, and social cost-benefit analysis. These concepts are applied to areas that include nonrenewable resources, air and water pollution, solid waste management, and hazardous substances. We emphasize analyzing the optimal role for public policy.

Instructor(s): G. Tolley, S. Shaikh     Terms Offered: Winter
Prerequisite(s): ECON 20100
Equivalent Course(s): ENST 26500,PPHA 32800

ECON 26530. Environment, Agriculture, and Food: Economic and Policy Analysis. 100 Units.

The connections between environment, agriculture, and food are inherent in our social, cultural, and economic networks. Land use, natural resource management, energy balances, and environmental impacts are all important components in the evolution of agricultural systems. It is necessary to understand these connections in order to design effective agricultural programs and food policies. This course is designed to provide students with guidance on developing and implementing the economic models and statistical tools needed to conduct an economic research study on the intersecting topics of environment, agriculture, and food. Students will apply quantitative methods and policy analysis to the topics of their choice for professional and scholarly audiences. Students will collect and synthesize data for quantitative analysis, which will provide outcomes and recommendations based on scholarly, objective, and policy relevant research rather than on advocacy or opinions. Students will produce a final professional-quality report for a workshop presentation and publication. This small seminar course is open to both undergraduate and graduate students meeting the prerequisites. For consideration in the course, please submit a one-page proposal detailing previous course experience, background, and a proposed economic research topic related to environment, agriculture, or food to pge@uchicago.edu by December 15, 2012.

Instructor(s): S. Shaikh     Terms Offered: Winter
Prerequisite(s): For ENST/PBPL/PPHA enrollment: PBPL 20000 or PBPL 22200 (or equivalent Economics course), and PBPL 26400 (or equivalent Statistics course); ECON 26500 or ECON 26600 or ENST 21800 (or equivalent environmental economics course) recommended. For ECON enrollment: ECON 20000 or ECON 20100, and STAT 23400 (or equivalent); ECON 26500 or ECON 26600 recommended.
Note(s): Students enrolling in ENST or PBPL will not receive ECON elective credit.
Equivalent Course(s): ENST 26530,PBPL 26530,PPHA 32510

ECON 26600. Economics of Urban Policies. 100 Units.

This course covers tools needed to analyze urban economics and address urban policy problems. Topics include a basic model of residential location and rents; income, amenities, and neighborhoods; homelessness and urban poverty; decisions on housing purchase versus rental (e.g., housing taxation, housing finance, landlord monitoring); models of commuting mode choice and congestion and transportation pricing and policy; urban growth; and Third World cities.

Instructor(s): G. Tolley, J. Felkner     Terms Offered: Spring
Prerequisite(s): ECON 20100
Equivalent Course(s): GEOG 26600,GEOG 36600,LLSO 26202,PBPL 24500

ECON 26700. Economics of Education. 100 Units.

This course explores economic models of the demand for and supply of different forms of schooling. The course examines the markets for primary, secondary, and post-secondary schooling. The course examines numerous public policy questions, such as the role of government in funding or subsidizing education, the design of public accountability systems, the design of systems that deliver publicly funded (and possibly provided) education, and the relationship between education markets and housing markets.

Instructor(s): D. Neal     Terms Offered: Spring
Prerequisite(s): ECON 21000
Equivalent Course(s): PBPL 26700,ECON

ECON 26800. Energy and Energy Policy. 100 Units.

This course shows how scientific constraints affect economic and other policy decisions regarding energy, what energy-based issues confront our society, how we may address them through both policy and scientific study, and how the policy and scientific aspects can and should interact. We address specific technologies and the policy questions associated with each, as well as with more overarching aspects of energy policy that may affect several, perhaps many, technologies.

Instructor(s): S. Berry, G. Tolley     Terms Offered: Autumn
Prerequisite(s): Third- or fourth-year standing. For ECON 26800: ECON 26500 and consent of instructor.

ECON 27000. International Economics. 100 Units.

This course deals with the pure theory of international trade: the real side of international economics. Topics include the basis for and gains from trade; the theory of comparative advantage; and effects of international trade on the distribution of income, tariffs, and other barriers to trade.

Instructor(s): S. Kortum     Terms Offered: Autumn
Prerequisite(s): ECON 20300 or consent of instructor
Equivalent Course(s): PBPL 27000

ECON 27300. Regulation of Vice. 100 Units.

This course discusses government policy regarding traditional vices (i.e., drinking, smoking, gambling, illicit sex, recreational drug use). Among policies considered are prohibition, taxation, treatment, decriminalization, and legalization. The intellectual framework employed to evaluate various policies is primarily economic, though other disciplines are drawn upon. This course is offered in alternate years.

Instructor(s): J. Leitzel     Terms Offered: Spring
Prerequisite(s): ECON 20000 or PBPL 20000
Equivalent Course(s): PBPL 27300

ECON 28000. Industrial Organization. 100 Units.

This course extends the analysis from ECON 20100, with a focus on understanding the way firms make decisions and the effects of those decisions on market outcomes and welfare. The course examines the structure and behavior of firms within industries. Topics include oligopolistic behavior, the problems of regulating highly concentrated industries, and the implementation of U.S. antitrust policy.

Instructor(s): A. Hortacsu, S. Gay     Terms Offered: Autumn, Winter
Prerequisite(s): ECON 20100

ECON 28100. The Economics of Sports. 100 Units.

This is a course in microeconomics that applies traditional product and factor market theory and quantitative analysis to contemporary economic issues in professional and college athletics. Topics include the sports business; market structures and outcomes; the market for franchises; barriers to entry, rival leagues, and expansion; cooperative, competitive, and collusive behavior among participants; labor markets, productivity, and compensation of players; racial discrimination; public policies and antitrust legislation; and financing of stadiums.

Instructor(s): A. Sanderson     Terms Offered: Spring
Prerequisite(s): ECON 20100

ECON 28600. Economic Analysis of Law. 100 Units.

This course examines the structure of law from an economic basis. Topics include property rights, contracts, torts, the Coase theorem, and criminal law.

Instructor(s): J. Leitzel     Terms Offered: Autumn
Prerequisite(s): ECON 20100
Equivalent Course(s): PBPL 28605

ECON 28700. The Economics of Crime. 100 Units.

This course uses theoretical and empirical economic tools to analyze a wide range of issues related to criminal behavior. Topics include the police, prisons, gang behavior, guns, drugs, capital punishment, labor markets and the macroeconomy, and income inequality. We emphasize the analysis of the optimal role for public policy. This course is offered only in even numbered year.

Instructor(s): S. Levitt     Terms Offered: Winter
Prerequisite(s): ECON 20100 required; ECON 21000 or STAT 23400 strongly recommended
Equivalent Course(s): PBPL 23200

ECON 29700. Undergraduate Reading and Research. 100 Units.

Students are required to submit the College Reading and Research Course Form.

Instructor(s): R. Herbst     Terms Offered: Autumn, Winter, Spring
Prerequisite(s): Consent of directors of the undergraduate program

ECON 29800. Undergraduate Honors Workshop. 100 Units.

For details, see the preceding Honors section.

Instructor(s): G. Tsiang, V. Lima     Terms Offered: Autumn, Winter, Spring
Prerequisite(s): Faculty sponsorship and consent of honors workshop supervisors

ECON 30100. PRICE THEORY I. 100 Units.

Theory of consumer choice, including household production, indirect utility, and hedonic indices.  Models of the firm. Analysis of factor demand and product supply under competitive and monopolistic conditions.  Static and dynamic cost curves, including learning by doing and temporary changes.  Uncertainty applied to consumer and producer choices.  Property rights and the effects of laws.  Investment in human and physical capital.

Instructor(s): Kevin Murphy and Gary Becker     Terms Offered: Autumn
Equivalent Course(s): LAWS 43611

ECON 30200. PRICE THEORY II. 100 Units.

The first five weeks of this course are a continuation of ECON 30100, Price Theory I.  

The second half of the course will be devoted to the Walrasian model of general competitive equilibrium as developed by Arrow and Debreu.  This will begin with a brief development of the consumer and producer theories, followed by the welfare theorems connecting equilibria and optima and a treatment of the classical existence of equilibrium theorem.  The core of an economy, a limit theorem relating the core to the set of competitive equilibria, and models in which agents are small relative to the market will also be considered.  Finally we will study general equilibrium under some alternative assumptions; such as, informational asymmetries and rational expectations equilibrium, public goods and Lindahl equilibrium, financial general equilibrium and asset pricing. 

Instructor(s): Gary Becker, Kevin Murphy, and Phil Reny     Terms Offered: Winter
Equivalent Course(s): LAWS 43621

ECON 30300. PRICE THEORY III. 100 Units.

The course begins with expected utility theory, and then introduces the fundamental ideas of game theory: strategic-form games, Nash equilibrium, games with incomplete information, extensive-form games, and sequential equilibrium.   Then the course will focus on the effects of informational asymmetries in markets and the problems of moral hazard and adverse selection.  Topics include: optimal risk sharing, signaling and screening in competitive markets, principal-agent problems, strategic and informational incentive constraints, incentive efficiency, and mechanism design for auctions and bilateral trading.

Instructor(s): Roger Myerson and Phil Reny     Terms Offered: Spring

ECON 30400. INTRODUCTION TO MATHEMATICAL METHODS IN ECONOMICS. 000 Units.

This optional three-week course for incoming graduate students meets September 4 through September 21 2012 and introduces some basic mathematical concepts used in economic theory: a "briefing" of the math students will encounter in the Core classes.  Emphasis is placed on problem-solving, but also on some fairly abstract math you might not see otherwise.  Cooperative work is strongly encouraged.

Instructor(s): Victor O. Lima     Terms Offered: September 4-September 21, 2012
Prerequisite(s): Econ PhD students only

ECON 30501. TOPICS IN THEORETICAL ECONOMICS. 100 Units.

Some of the topics covered in this course are: Nash equilibrium existence in discontinuous games, existence of monotone pure strategy equilibria in Bayseian games, defining sequential equilibrium in infinite extensive form games, efficient auction design, correlated information and mechanism design.

Instructor(s): Phil Reny     Terms Offered: Winter

ECON 30600. THE ECONOMICS OF INFORMATION. 100 Units.

This course introduces students to a range of economic tools used to study models explicitly involving strategic behavior, information transmission, and contracting in economics and finance. The intention is to prepare the student to conduct research using these tools.  Techniques studied include agency theory, signaling models, and sequential games of incomplete information. In addition, some applications of the tools will be covered. The approach is rigorous and analytical. First class assignment: purchase the required materials, read the syllabus (with special attention to the section on prerequisites), and read the article "Moral Hazard and Observability" by Bengt Holmström (Bell Journal, spring 1979) which can be downloaded from JSTOR. The syllabus is available on the “Booth Syllabi” link on Chalk:  https://chalk8.uchicago.edu/webapps/portal/frameset.jsp?tab_id=_11_1   

Instructor(s): Milton Harris     Terms Offered: Autumn
Prerequisite(s): PQ: ECON 30100 and 30200
Equivalent Course(s): BUSF 33911

ECON 30701. EVOLUTIONARY GAME THEORY. 100 Units.

The goal of this course is to give an introduction to Evolutionary Economics with a particular focus on the evolution of preferences. The topics covered in this course include altruism, risk-preferences, discounting, happiness and social norms.

Instructor(s): Balazs Szentes     Terms Offered: Spring

ECON 31000. EMPIRICAL ANALYSIS I. 100 Units.

This course introduces students to the key tools of econometric analysis.  It covers basic OLS regression model, generalized least squares, asymptotic theory and hypothesis testing for maximum likelihood estimation, extremum estimators, instrumental variables, decision theory and Bayesian inference.

Instructor(s): Azeem Shaikh and Peter Rossi     Terms Offered: Autumn

ECON 31100. EMPIRICAL ANALYSIS II. 100 Units.

This course develops methods of analyzing Markov specifications of dynamic economic models. Models with stochastic growth are accommodated and their properties analyzed. Methods for identifying macroeconomic shocks and their transmission mechanisms are developed.  Related filtering methods for models with hidden states are studied.  The properties estimation and inference methods based on maximum likelihood and generalized method of moments are derived.  These econometric methods are applied to models from macroeconomics and financial economics.

Instructor(s): Lars Hansen     Terms Offered: Winter

ECON 31200. EMPIRICAL ANALYSIS III. 100 Units.

The course will review some of the classical methods you were introduced to in previous quarters and give examples of their use in applied microeconomic research. Our focus will be on exploring and understanding data sets, evaluating predictions of economic models, and identifying and estimating the parameters of economic models.  The methods we will build on include regression techniques, maximum likelihood, method of moments estimators, as well as some non-parametric methods. Lectures and homework assignments will seek to build proficiency in the correct application of these methods to economic research questions.

Instructor(s): Derek Neal and Peter Rossi     Terms Offered: Spring

ECON 33000. THE THEORY OF INCOME I. 100 Units.

This course will use dynamic general equilibrium models to study macroeconomic questions.  The first half of the quarter will focus on applications of the neoclassical growth model, including variants useful for studying the effects of capital, labor, and consumption taxes; the effects of general and investment specific technical change; the role of human capital accumulation, and the q-model of investment.  On the technical side, this part of the course will rely heavily on the tools of optimal control theory (Hamiltonians) and on the First and Second welfare theorems.  

The second part of the course will focus on applications of stochastic dynamic programming. On the substantive side, particular topics include models of job search and asset pricing; models with idiosyncratic (insurable) and aggregate (uninsurable) risk; and dynamic tax smoothing.  On the technical side, this part of the course will rely heavily on Bellman equations and other recursive modeling techniques.

Instructor(s): Nancy Stokey     Terms Offered: Autumn

ECON 33100. THE THEORY OF INCOME II. 100 Units.

This course will explore a variety of macroeconomic models in which the welfare theorems do not necessarily hold, including overlapping generations models, equilibrium models with labor market search and matching frictions, economies with sticky prices and sticky wages, and environments in which money facilitates exchange.  We will also explore the role of government policy within these models, including optimal taxation, optimal monetary policy, and the time consistency of these policies.  If time permits, we will look at environments with non-convex adjustment costs, such as irreversible investment and fixed costs of changing prices.

Instructor(s): Robert Shimer     Terms Offered: Winter

ECON 33200. THE THEORY OF INCOME III. 100 Units.

The course shares with the other two Theory of Income courses the objectives of (1) explaining human behavior as evidenced by aggregate variables and (2) predicting the aggregate effects of certain government policies.  Economics 33200 considers some of the prevailing business cycle theories, and their application to the recession of 2008-9.  Some hypotheses to be considered are the q-theory of housing investment, the neoclassical approach to fiscal policy, and whether government spending has a “multiplier.”  The course confronts several empirical issues that are also encountered outside the field of macroeconomics such as the construction of aggregate data, choice of data set, and the measurement of expectations.

Instructor(s): Casey Mulligan     Terms Offered: Spring

ECON 34300. HUMAN CAPITAL. 100 Units.

This course covers both micro and macro aspects of human capital: investments by parents in the education and other human capital of their children, intergenerational transmission of inequality, links between specializations in particular types of human capital and coordination costs, general knowledge, and the extent of the market.  The relation between human capital, population change, and economic growth is also emphasized.

Instructor(s): Gary Becker     Terms Offered: Spring
Equivalent Course(s): SOCI 30306

ECON 34702. AGGREGATE LABOR MARKET DYNAMICS. 100 Units.

This course will examine recent research at the intersection of Macroeconomics and Labor Economics.  The first part of the course will look at the determinants of business-cycle-frequency fluctuations in employment and hours worked.  We will ask whether search models are capable of addressing empirical inconsistencies in market-clearing models of the labor market.  We will also examine how these models can be used to study worker mobility across geographic or occupational sectors of the economy.  The second part of the course will study the determinants of long-run, cross-country differences in employment and hours worked.  We will examine the role played by differences in taxes, unemployment insurance, and firing costs.  The emphasis throughout the course will be on the use of empirically grounded general equilibrium models to address the key determinants of labor market outcomes.

Instructor(s): Robert Shimer     Terms Offered: Autumn

ECON 34901. SOCIAL INTERACTIONS AND INEQUALITY. 100 Units.

This course will focus on the theory, econometrics, and empirical analysis of social influences on economic behavior, termed social interactions. As such, the course will include topics ranging from social networks to social capital to discrimination. We will examine the effects of social interactions on individual and aggregate behaviors as well as the implications of social interactions for the formation of social structure. Particular attention will be given to the translation of theoretical models into econometric analogs and to the identification questions that arise when attempting to construct empirical evidence on social interactions. Applications of social interactions will focus on contexts in which their presence can help explain observed levels of socioeconomic inequality.

Instructor(s): Staff     Terms Offered: Spring

ECON 35002. THE ORIGINS AND CONSEQUENCES OF INEQUALITY IN CAPABILITIES. 100 Units.

This course examines the trends and sources of inequality. It focuses on human capital broadly defined as a vector of skills, preferences, and personality traits.  It examines the origins of these capabilities; the role of markets, family investment, social interactions, and heritability-in explaining inequality in wages, health, education, participation in risky activities, crime, labor supply, and a variety of other behaviors using a unified approach. We consider inter- and intra- generational mobility in earnings, health and other dimensions of social position and economic status. The course considers, among other topics, life cycle models of skill acquisition, self-control, and preference formation, as well as gene-environment interactions and the influence of inequality on capability formation.  Economic models and econometric tools will be developed as required.

Instructor(s): James Heckman     Terms Offered: Winter

ECON 35101. INTERNATIONAL MACROECONOMICS & TRADE. 100 Units.

This course is the first in a three course sequence on international economics. The first part is reserved to international trade and will involve a mix of theory, data, and computation. After studying the workhorse models (including classical models of trade, models with increasing returns and monopolistic competition, and recent models with heterogeneous firms), we will cover their recent quantitative applications. The second part is on international macroeconomics and focuses on international relative prices and exchange rates. In particular, we will cover price-related puzzles, such as PPP puzzle and exchange rate disconnect, study the recent work on incomplete pass-through and pricing-to-market, as well as models of real and nominal exchange rate under flexible and sticky prices.

Instructor(s): Kerem Cosar and Oleg Itskhoki     Terms Offered: Autumn
Equivalent Course(s): BUSF 33946

ECON 35200. TOPICS IN ECONOMIC GROWTH. 100 Units.

This course is the second in a three-course sequence on economic growth and international trade.  It will examine models of economic growth, focusing on questions where international trade, international comparisons, and the diffusion of technologies across international boundaries play a role. In particular, we will look at: explanations of cross-country differences in productivity levels, the role of financial development and the misallocation of factors in explaining those differences, cross-country differences in growth rates and the role of technology diffusion.  Related theoretical work—models of innovation (R&D) and of structural transformation—will also be examined.

Instructor(s): Nancy Stokey     Terms Offered: Winter

ECON 35301. INTERNATIONAL TRADE AND GROWTH. 100 Units.

This course is the last in a three course sequence on Economic Growth and International Trade. We will focus on recent research related to trade, growth, and technology diffusion. Papers by Eaton and Kortum, Alvarez, Buera, Lucas, Prescott, McGrattan and Jovanovic will be reviewed, as well as work by Sachs and Warner, Stokey, Grossman and Helpman, Rossi-Hansberg, and Klenow and Rodriguez-Clare.

Instructor(s): Robert Lucas     Terms Offered: Spring

ECON 36101. ECONOMIC MODELS OF POLITICS. 100 Units.

This course is an introduction to current research in political economics. The emphasis is on game-theoretic models that can be used to study the effects of different constitutional structures on the competitive behavior of politicians and the welfare-relevant performance of government.

Instructor(s): Roger Myerson and Richard van Weelden     Terms Offered: Winter

ECON 36200. PUBLIC SECTOR ECONOMICS. 100 Units.

The concept of "market distortion" is used to formulate measurements, explanations, and consequences of government activities including tax systems, expenditure programs, and regulatory arrangements. Topics include cross-country comparisons of government behavior, predicting microlevel responses to policy, measuring and evaluating the incidence of government activity, alternative models of government decision-making, and the application of public finance to other economics fields.

Instructor(s): Casey Mulligan     Terms Offered: Autumn

ECON 36301. PUBLIC ECONOMICS. 100 Units.

This course covers areas of active empirical research on the design and effects of taxes and government spending.  The areas covered are welfare economics, income taxation and labor supply, optimal income taxation, the effects of welfare and social insurance programs including AFDC/TANF, social security, unemployment insurance, workers' compensation, and disability insurance.  While the emphasis is primarily empirical, the course begins each topic with the main theoretical work in that area.

Instructor(s): Bruce Meyer     Terms Offered: Spring
Equivalent Course(s): PPHA 44000

ECON 37403. RESEARCH SEMINAR ON THE QUANTITATIVE STUDY ON INEQUALITY. 100 Units.

This course examines the counter-factual analysis of inequality and social policy. Basic econometric tools will be developed including dynamic models of discrete choice.  

Instructor(s): James Heckman     Terms Offered: Spring
Equivalent Course(s): PPHA 48410

ECON 38001. APPLIED MACROECONOMICS: MICRO DATA FOR MACRO MODELS. 100 Units.

This course considers the use of data on households, workers, producers and media sources in research on consumption behavior, labor market fluctuations, business dynamics and other areas of macroeconomics. A key goal is to help students develop the ability to identify interesting research questions and devise promising research strategies. Topics include life cycle consumption behavior, home production and time use, housing market dynamics, wage rigidities and their consequences, unemployment fluctuations, employer behavior on the hiring margin, entrepreneurship, and economic policy uncertainty. Lectures treat a mix of important, well-established research contributions and new, often rough, papers that seek to advance the frontier. Homework assignments aim to build proficiency in the use of micro data to address macroeconomic issues, expose students to a variety of useful data sources, and give them first-hand experience in identifying and evaluating research questions and strategies.

Instructor(s): Steven Davis and Erik Hurst     Terms Offered: Autumn
Equivalent Course(s): BUSF 33942

ECON 38301. APPLIED MACROECONOMICS II. 100 Units.

This course consists of two components. There are five weeks of lectures on stochastic dynamic equilibrium models with financial market linkages. The impact of financing frictions on the macroeconomic transmission mechanism and on the asset markets will be considered. Also the impact of uncertainty is analyzed through the lens of recent literatures on ambiguity aversion and concerns for robustness. The class explores emerging literatures designed to confront empirical challenges and quantitative predictions. For the second part of the class students are required to attend lectures by outside scholars: Violante, Piazzessi, Primiceri and Bloom on a variety of important topics in macroeconomics. Each will give one lecture to a broad audience of graduate students and some faculty. Students are asked to write short essays (say referee reports) on two papers that are prominently referenced in these lectures. 

Instructor(s): Lars Hansen     Terms Offered: Autumn
Equivalent Course(s): BUSF 33947

ECON 38401. APPLIED MACROECONOMICS II. 100 Units.

This course focuses on models of decentralized trade applied both to labor and financial markets, which may be affected by search and informational frictions. Among other things, we will focus on understanding financial crises and their macroeconomic effects. We will discuss how illiquidity may be generated by trading informational frictions and the effects of deleveraging of households and firms on economic activity and unemployment. 

Instructor(s): Veronica Guerrieri     Terms Offered: Spring
Equivalent Course(s): BUSF 33948

ECON 38900. THEORY OF FINANCIAL DECISIONS I. 100 Units.

This course is concerned with models for portfolio decisions by investors and the pricing of securities in capital markets.  The material is covered in a rigorous analytical manner, although formal technical requirements are minimal.  The reading list is extensive.  The expectation is that the average student spends 15+ hours per week on the course, outside of class.  Grades are based on weekly take-home exam questions, about five problem sets, and a term paper. Class participation (I cold call) is also used to determine grades.  Cannot be taken pass/fail or audited.

This course is intended for (i) first-year Booth Ph.D. students with no finance and (at best) undergraduate economics and statistics backgrounds, and (ii) second-year MBA students with rather minimal economics and statistics backgrounds.  Students with stronger backgrounds in economics and statistics are likely to find the pace of the course, and the exam and problem set requirements, somewhat tedious.  Such students are better served by the Booth Ph.D. Asset Pricing courses offered by Cochrane, Constantinides, and Heaton. 

Instructor(s): Eugene Fama     Terms Offered: Autumn
Prerequisite(s): Written proof of permission from the Instructor to enroll in this class is required at the time of registration. Attendance at the first class is mandatory.
Equivalent Course(s): BUSF 35901

ECON 39001. THEORY OF FINANCIAL DECISIONS II. 100 Units.

This course provides a theoretical and empirical treatment of major topics in corporate finance, including: capital structure and financial contracting; investment decisions; bankruptcy; and the market for corporate control.  The course is designed for Ph.D. students interested in corporate finance.  Grades will be based on problem sets, referee reports, and a final examination. 

Instructor(s): Douglas Diamond, Raghuram Rajan and Amir Sufi     Terms Offered: Winter
Prerequisite(s): ECON 38900 / BUSF 35901
Equivalent Course(s): BUSF 35902

ECON 39101. ASSET PRICING. 100 Units.

In this course, we develop the theory of financial markets. Topics: review of mean-variance portfolio theory and the CAPM; arbitrage and state prices; the arbitrage pricing theory (APT); intertemporal consumption-investment decisions; the intertemporal capital asset pricing model (ICAPM) and the intertemporal APT; the econometrics of multifactor models; present value relations; equilibrium asset pricing models and the equity premium puzzle; explanations based on preferences, incomplete markets, imperfect markets, and rare events; introduction to stochastic calculus; option pricing; intertemporal consumption-investment decisions and asset pricing in continuous time; the term structure of interest rates.

Materials required will include:  S. Bhattacharya and G. M. Constantinides (editors), Theory of Valuation (World Scientific). J. Y. Campbell, A. W. Lo, and A. C. Mackinlay, The Econometrics of Financial Markets (Princeton). J. Cochrane, Asset Pricing (Princeton). J. E. Ingersoll, Theory of Financial Decision Making (Rowman and Littlefield). CoursePack of readings.

Grades will be based on class participation, homework, and a final examination in class. Students are expected to read the assigned materials in advance, participate in the class discussion, and work on extensive problem sets.

Instructor(s): George Constantinides     Terms Offered: Autumn
Prerequisite(s): BUSF 35100 and BUSF 35901
Equivalent Course(s): BUSF 35912

ECON 39200. TOPICS IN EMPIRICAL FINANCE. 100 Units.

The central question of empirical finance is "what are the real sources of aggregate risk that determine asset prices?" This course focuses on current topics in empirical finance that address this question. It explores this question by providing a synthesis of asset pricing and macroeconomic theory. The emphasis is on the stochastic discount factor framework for thinking about asset pricing, and the course spends some time exploring this framework and relating it to traditional expected return-beta statements of asset pricing models. Methods for analyzing the term structure of risk exposures and prices across alternative investment horizons are developed.  Econometric challenges are explored.  Finally, the effects of investor preferences and individual heterogeneity and frictions in asset markets on equilibrium stochastic discount factors are analyzed.  

Instructor(s): Lars Hansen and Stefano Giglio     Terms Offered: Winter
Equivalent Course(s): BUSF 35905

ECON 39400. THEORY OF FINANCIAL DECISIONS III. 100 Units.

We plan to cover three broad topics in this course: (1) theory of the firm; (2) the development of financial markets and its effects on real markets; and (3) financial intermediaries. We will start by trying to understand why firms exist. This will naturally lead on to questions about their organizational and control structures and about the way they are financed. Financial intermediaries play a key role in financing and we will attempt to understand why they are useful. Among the topics we will examine are the effects of financial contracts and intermediaries on incentives, commitment, and the liquidity of markets and the chance of a financial crisis.

This course is intended for Ph.D. students and advanced M.B.A. students who have a substantial understanding of formal economics and some basic game theory.  Grades will be based on problem sets, referee reports and a final examination.  

Instructor(s): Douglas Diamond and Luigi Zingales     Terms Offered: Spring
Prerequisite(s): ECON 39001 / BUSF 35902. A solid background in advanced microeconomics is highly recommended.
Equivalent Course(s): BUSF 35903

ECON 39600. TOPICS IN ASSET PRICING. 100 Units.

This course covers topics in the area of dynamic asset pricing, including standard complete market models, incomplete markets, portfolio constraints and transaction costs, learning and uncertainty, asymmetric information and other recent developments such as non-time additive preferences. The course will also cover selected topics in the area of derivative pricing and term structure models.

Instructor(s): Pietro Veronesi     Terms Offered: Spring
Equivalent Course(s): BUSF 35907

ECON 39802. ADVANCED LAW AND ECONOMICS. 100 Units.

This seminar examines theoretical and empirical work in the economic analysis of law. It will cover, among other things, optimal tort rules, models of contract liability and remedies, optimal criminal rules, settlement and plea bargaining, and models of judicial behavior. Familiarity with calculus and either advanced undergraduate microeconomics or graduate microeconomics is expected.  Grades will be based on class participation and a series of research paper proposals. 

Instructor(s): Anup Malani     Terms Offered: Spring
Equivalent Course(s): LAWS 55401

ECON 40101. ADVANCED INDUSTRIAL ORGANIZATION I. 100 Units.

This two-quarter sequence is part of the Industrial Organization Specialized Field taught jointly at the Ph.D. level in the Department of Economics and the Booth School of Business. Topics include modeling consumer demand, production function estimation, static and dynamic models of imperfect competition, pricing strategies, theory of the firm and organizational design. Recent theoretical and empirical approaches are emphasized.

Instructor(s): Chad Syverson     Terms Offered: Autumn
Prerequisite(s): PQ: Solid background in first year Ph.D. level microeconomics and econometrics, e.g., ECON 30100, 30200, or 30300 and ECON 31000, 31100, or 31200.
Equivalent Course(s): BUSF 33921

ECON 40201. ADVANCED INDUSTRIAL ORGANIZATION II. 100 Units.

This two-quarter sequence is part of the Industrial Organization Specialized Field taught jointly at the Ph.D. level in the Department of Economics and the Booth School of Business. Topics include modeling consumer demand, production function estimation, static and dynamic models of imperfect competition, pricing strategies, theory of the firm and organizational design. Recent theoretical and empirical approaches are emphasized.

Instructor(s): Ali Hortacsu     Terms Offered: Winter
Prerequisite(s): . PQ: Solid background in first year Ph.D. level microeconomics and econometrics, e.g., ECON 30100, 30200, or 30300 and ECON 31000, 31100, or 31200.
Equivalent Course(s): BUSF 33922

ECON 40301. ADVANCED INDUSTRIAL ORGANIZATION III. 100 Units.

This course will complement the other courses in the Ph.D. sequence for industrial organization and will focus on topics closely related to antitrust economics and regulation. Topics will include optimal price discrimination, bundling, tie in sales, price fixing, two sided markets including credit cards, the theory of optimal regulation, and the empirical facts of regulation. The course is primarily for PhDs in economics and business, but advanced law students interested in antitrust and regulation plus advanced and interested MBAs are welcome. 

Instructor(s): Dennis Carlton     Terms Offered: Spring
Equivalent Course(s): BUSF 33923,LAWS 99304

ECON 40701. TOPICS IN MATCHING AND MARKET DESIGN. 100 Units.

This course is a reading seminar on the theory and practice of market design. The first few weeks will introduce the field and its technology; subsequent weeks will discuss recent papers alongside their classical antecedents.  In addition to technical content, class discussion will pay special attention to issues of problem identification and formulation, so as to understand what comprises "interesting" work in market design.  Topics may include: spectrum reassembly, cadet-branch matching, affirmative action, large-market matching, kidney exchange chains, real property, and the design of dating websites.

Instructor(s): Scott Kominers     Terms Offered: Spring

ECON 40801. INTRODUCTION TO THEORY-BASED EMPIRICAL METHODS WITH APPLICATIONS TO MARKET DESIGN. 100 Units.

This course will concentrate on identification and estimation of static models related to market design, but may also serve as an introduction to structural research in general.  As a rough outline, the first segment will cover single-object auction models, the second segment will cover multi-object auction models, and the final segment will cover related settings including contracts, adverse selection models, rank-order contests, and matching markets.  Lectures will briefly cover theoretical background of various models so as to facilitate an in-depth discussion of topics such as model identification within different informational environments, unobserved heterogeneity, estimation techniques, and counterfactual experiments.  Class assignments will include empirical exercises, a referee report, and in-class presentations on recent research of interest to class members.

Instructor(s): Brent Hickman     Terms Offered: Winter

ECON 41800. NUMERICAL METHODS IN ECONOMICS. 100 Units.

This course introduces a broad range of numerical methods, and shows how to use them to compute equilibrium in competitive and game theoretic models and compute econometric estimators. Applications will include solution of dynamic stochastic general equilibrium models, life-cycle dynamic programming problems, optimal taxation, nonlinear pricing, Nash equilibrium of dynamic games, and estimation of structural models. We will also introduce students to advanced computational tools, such as cluster computing and supercomputing; in particular, students will get accounts on supercomputers.

Instructor(s): Ken Judd     Terms Offered: Autumn

ECON 41903. Computational Econometrics: Bringing Economics to Data. 100 Units.

The objective of this class is to equip students with the required computational skills that allow them to implement meaningful economic models in their quantitative research. We aim to put them in a position to develop their own econometric toolkit which is tailored to their research needs. The course consists of three parts. We begin by reviewing basic programming methods that enable computation intensive, high quality research. Then, we show the usefulness of these techniques for two common econometric models. First, we implement alternative estimation strategies for the static selection model. And second, we turn to the estimation of dynamic economic models.

Instructor(s): James Heckman     Terms Offered: Winter

ECON 42100. AN INTRODUCTION TO DOING EMPIRICAL MICROECONOMIC RESEARCH. 100 Units.

This course is designed to give students early in their graduate careers exposure to carrying out their own empirical micro-focused research.  Attention will be paid to every step in the process: idea generation, the use of data, identifying the right tools to answer the question at hand, testing hypotheses, making arguments convincing, etc.  These issues will be discussed through evaluation of both outstanding papers in the literature, and papers that fail to achieve their full potential.  Students will be expected to carry out their own original empirical research to meet the course requirements. 

Instructor(s): Steven Levitt     Terms Offered: Winter
Equivalent Course(s): LAWS 99303

ECON 42800. Creativity. 100 Units.

This seminar examines recent research on how creative people innovate in a wide range of intellectual activities. The main project for the course is a term paper that analyzes the creative life cycle of one or more innovators of the student’s choice, using both quantitative and qualitative evidence. Students present their research in progress for discussion. The seminar is designed to give students all the tools needed to do this research, including choosing a subject, finding and using an appropriate data set, and negotiating the relevant scholarship.

Instructor(s): D. Galenson     Terms Offered: Winter
Prerequisite(s): ECON 19800 or consent of instructor
Equivalent Course(s): ECON 22650

ECON 42900. Innovators. 100 Units.

Economists believe that innovation is a primary source of economic growth. Yet although most innovations are made by individuals or small groups, until recently economists have not studied how those exceptional people produce their discoveries. Recent research has shown that there are two very different types of innovators, who have different goals and follow different processes. This course surveys this research, examining the careers and innovations of important practitioners in a range of modern arts, including painters, novelists, sculptors, poets, movie directors, photographers, songwriters, and architects, as well as entrepreneurs and scientists. The material covered in this course adds a new dimension to our understanding of creativity and of how innovators in many different activities produce new forms of art and science.

Instructor(s): D. Galenson     Terms Offered: Autumn
Prerequisite(s): Econ 20100
Equivalent Course(s): ECON 22600

ECON 49900. INDIVIDUAL RESEARCH. 100 Units.

For Required Research Paper:  to be arranged between individual faculty and students – see Time Schedule for faculty Section Numbers.

Instructor(s): Faculty     Terms Offered: Autumn, Winter, Spring