Graduate Course Descriptions
2013-2014 (posted 9/16/13)
30100 PRICE THEORY I (Murphy / Becker)
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. (=LAWS 43611)
30200 PRICE THEORY II (Murphy / Reny)
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. (=LAWS 43621)
30300 PRICE THEORY III (Myerson / Reny)
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.
30400 INTRODUCTION TO MATHEMATICAL METHODS IN ECONOMICS (Lima)
This optional three-week course for incoming graduate students meets September 3 through September 20, 2013 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.
30501 TOPICS IN THEORETICAL ECONOMICS (Reny)
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.
30600 THE ECONOMICS OF INFORMATION (Harris)
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). The syllabus is available on the “Booth Syllabi” link on Chalk: http://www.chicagobooth.edu/syllabus_gsb/milton.harris/ which provides JSTOR links to most of the articles for the course. The one exception will be available through online Regenstein Reserve. Also, Microeconomic Theory, by A. Mas-Colell, M. D. Whinston, and J. Green (Oxford University Press, 1995) and Contract Theory, by P. Bolton and M. Dewatripont (MIT Press, 2005) may be useful but are not mandatory. PQ: ECON 30100-30200. (=BUSF 33911)
30701 EVOLUTIONARY GAME THEORY (Szentes)
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.
31000 EMPIRICAL ANALYSIS I (Shaikh
This course introduces students to the key tools of econometric analysis: basic asymptotic theory, including convergence in probability, convergence in distribution, laws of large numbers, continuous mapping theorems, central limit theorems, and the delta method; conditional expectation; applications to linear regression, instrumental variables, maximum likelihood, and extremum estimators
31100 EMPIRICAL ANALYSIS II (Uhlig)
This course will develop time series methods pertinent for the analysis of dynamic economic models. Vector autoregressive methods for identifying shocks and their transmission and related filtering methods for models with hidden states will be investigated. Generalized method of moments and indirect inference methods will be studied. These econometric methods will be applied to models from macroeconomics and financial economics.
31200 EMPIRICAL ANALYSIS III (Neal / Hortaçsu)
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.
31700 TOPICS IN ECONOMETRICS (Shaikh)
This course presents a variety of tools useful for research in econometric theory. Topics may include: (partial) identification in econometrics, asymptotic comparisons of tests, asymptotic comparisons of estimators, empirical processes, the bootstrap, subsampling, randomization tests, multiple testing. Illustrations from recent research in econometrics will be presented if time permits.
31801 RANDOM COEFFICIENTS MODELS AND HIGH-DIMENSIONAL ECONOMETRICS (Gautier)
This course will present two modern research topics in econometrics. Random coefficients models allow the introduction of heterogeneous effects in economic models. We will focus on a nonparametric treatment of the distribution of random coefficients
and study various classes of models, their identification analysis as well as estimation. We will introduce the necessary notions of nonparametric statistics and inverse problems and consider
various applications including consumer demand and public policy evaluations.
The second half of the course will be dedicated to high-dimensional econometrics. Usual model selection procedures like BIC require consideration of all possible sub-models and are NP-hard. They cannot be carried out with more than a few dozens of regressors. Recent developments in optimization -- such as convex relaxation -- allow the development of new feasible algorithms, for example the LASSO. These methods allow us to deal with cases where the number of variables exceed the sample size and in some cases to automatically select the optimal bandwidth in nonparametric estimation. We will discuss questions such as endogeneity, nonlinear models and inference.
32000 TOPICS IN AMERICAN ECONOMIC HISTORY (Galenson)
Economic analysis is applied to important issues in American economic history. Specific topics vary, but may include the following: the economics of colonization, the transatlantic slave trade, the role of indentured servitude and slavery in the colonial labor market, the record and sources of 19th-century economic growth, economic causes and effects of 19th-century immigration, the expansion of education, the economics of westward migration, determinants of long-run trends in the distribution of income and wealth, the quantitative analysis of economic and social mobility, and the economics of racial discrimination in the twentieth- century South. PQ: ECON 20000. (=ECON 22200)
33000 THE THEORY OF INCOME I (Alvarez)
This course formulates and analyzes aggregate general equilibrium models to study classical questions in macroeconomics. The course starts with the formulation and analysis of competitive equilibrium in the general equilibrium models, including the 1st and 2nd welfare theorem. The first applications of this model are: social security (using an OLEG model), optimal risk sharing, and asset pricing (using a one period model with uncertainty). Most of the remaining applications focus on dynamic models without uncertainty. To do so we study tools to characterize optimal solutions of control problems: Hamiltonian, calculus of variations and dynamic programming. The main application of these tools is the neoclassical growth model in many variations: determinants of steady state and balanced growth path, endogenous growth, effect of variable labor supply, TFP changes and of investment specific technical progress, habit formation, the q-model of investment, taxation of capital and labor, optimal taxation a la Ramsey, among others.
33100 THE THEORY OF INCOME II (Stokey)
This course will focus on the use of recursive general equilibrium models to study various macroeconomic questions. On the substantive side, particular topics include labor market search; asset pricing; economies with idiosyncratic (insurable) and aggregate (uninsurable) risk; dynamic fiscal policy (Ricardian equivalence, tax smoothing, capital taxation); monetary policy (money demand, the welfare cost of inflation); time consistency; and aggregate models with price setting. On the methodological side, the course will focus on dynamic programming and other recursive modeling techniques.
33200 THE THEORY OF INCOME III (Mulligan)
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.
33502 MONETARY ECONOMICS I (Alvarez)
In this class we will analyze monetary models, focusing on money demand and interest rate determination. In most of the model that we will use real balances will be derived as ways to economize in different transactions. We will study properties of both individual (i.e. households and firms) as well as aggregate money demand. Among the properties we will study are interest rate and expenditure elasticity, and the effect on money demand of changes on transaction technology (i.e. credit card, ATMs, changes in banking, etc). We will use study of some of these properties to empirically evaluate the fit of different models, and some to evaluate the welfare consequence of different policies. We will also study some equilibrium aspects of monetary models. Among these aspects we will feature the liquidity effect of monetary injections, as well as the effect of money on aggregate nominal expenditure, interest rates and exchange rates. While the class will have mostly a theoretical bent, we will also review a selection of the empirical evidence on both long run and short run properties of money demand, as well as properties of interest rates and inflation.
33603 MACROECONOMICS AND FINANCIAL FRICTIONS (Uhlig)
This course investigates the interrelationship between financial markets and macroeconomics, presenting some recent developments in that literature. We start from a log-linearized perspective on asset pricing and macroeconomic dynamics. We extend these tools to long-run risk and Epstein-Zin preferences. We discuss higher moments and large disasters. Next we turn to models of systemic risk as well as DSGE models incorporating a financial sector and house price booms and busts. Finally, we turn to sovereign debt crises. We will learn about tools to analyze stochastic dynamic general equilibrium models, such as Dynare.
33703 FINANCIAL MARKETS IN THE MACROECONOMY (Guerrieri)
This course focuses on understanding the role of external financing, financial crises, and their effects on the real economy. First, we will discuss models of decentralized trading in financial markets, where illiquidity may be due to informational or trading frictions. Then we will focus on the macroeconomic effects of financial crises. We will focus on the effects of deleveraging of households and firms on economic activity and unemployment. (=BUSF 33948)
34300 HUMAN CAPITAL (Becker)
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. The links between specialization 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. (=SOCI 30306)
34601 ECONOMICS OF THE FAMILY IN DEVELOPING COUNTRIES (Voena)
This course will provide an overview of static and dynamic models of intra-household decision making, with a particular emphasis on their application to development economics. The course will focus on introducing cooperative and non-cooperative models of the household, the collective model, dynamic extensions of the collective model with limited commitment and agricultural household models. We will examine applications and tests of these models in multiple contexts, and especially in developing countries.
34901 SOCIAL INTERACTIONS AND INEQUALITY (STAFF)
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.
35002 THE ORIGINS AND CONSEQUENCES OF INEQUALITY IN CAPABILITIES (Heckman)
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.
35101 INTERNATIONAL MACROECONOMICS & TRADE (Cosar / Ossa)
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. (= BUSF 33946)
35301 INTERNATIONAL TRADE AND GROWTH (Lucas)
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.
35501 INTERNATIONAL MACROECONOMICS AND FINANCE (Hassan)
This course provides PhD students in economics and finance with the tools required for writing a dissertation in international finance or applied macroeconomics. The first part of the course covers empirical and theoretical work on exchange rate determination, international asset pricing, international capital flows, and global imbalances. The second part of the course identifies promising areas of future research and attempts to point out opportunities for intellectual arbitrage. Topics covered include information aggregation in financial markets and sociological factors in international capital flows. (= BUSF 35915)
36101 ECONOMIC MODELS OF POLITICS (Myerson / Van Weelden)
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.
37200 ANALYSIS OF MICROECONOMIC DATA I (Black)
This course covers a variety of topics in applied econometrics with a focus on measurement issues. Substantive issues include the design of experiments, latent variable models including IRT models, the problem of nonresponse in surveys, measurement error, and the selection problem. Econometric topics include basic panel data methods, matching models, nonparametric regression, control functions, and introduction to modern instrumental variables methods. (=PPHA 48200)
38001 APPLIED MACROECONOMICS: MICRO DATA FOR MACRO MODELS (Davis / Hurst)
This course considers the use of data on households, workers and producers 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 business productivity dynamics. 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. (=BUSF 33942)
38102 APPLIED MACROECONOMICS: HETEROGENEITY AND MACRO (Vavra)
This is a course on empirical macroeconomics with a focus on using micro data and models with microeconomic heterogeneity to understand macro phenomenon. Recent increases in computational power and the availability of "big data" have been transformational in empirical macroeconomics. The use of micro data provides additional discipline on macroeconomic models and often leads to insights or conclusions that differ from analysis using aggregate data alone. In this course, we will build the computational tools necessary to bring micro data to heterogeneous agent macro models. The first half of the course will focus mainly on topics related to households while the second half will focus mainly on topics related to firm behavior. Some particular applications include risk sharing and insurance, the welfare costs of business cycles, the role of transaction costs and lumpy adjustment, the effects of economic stimulus, the aggregate implications of volatility/uncertainty and understanding the aggregate dynamics of consumer durables, inflation and investment. (=BUSF 33949)
38900 THEORY OF FINANCIAL DECISIONS I (Fama)
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. This class cannot be taken pass/fail or for an “R.” 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.
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.(=BUSF 35901)
39001 THEORY OF FINANCIAL DECISIONS II (Diamond / Sufi)
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. PQ: ECON 38900/ BUSF 35901. (=BUSF 35902)
39100 ASSET PRICING (Cochrane)
This is the first course in the Ph.D. asset pricing sequence. We will march through the book Asset Pricing as far as possible. Main topics will be: 1) Discount factors and the consumption-based asset pricing model; 2) Mean-variance analysis; 3) Linear factor pricing models CAPM, ICAPM, APT; 4) GMM and regression based tests of asset pricing models; 5) Term structure of interest rates; 6) Black-Scholes and its extensions; 7) Empirical survey: Equity premium, volatility, predictability, and multiple factors; 8) New utility functions; 9) Portfolio theory. Please see the class website http://faculty.chicagobooth.edu/john.cochrane/teaching/ for more information. (= BUSF 35904)
39400 THEORY OF FINANCIAL DECISIONS III (Diamond / Zingales)
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. PQ: ECON 39001/ BUSF 35902. A solid background in advanced microeconomics is highly recommended. (=BUSF 35903)
39600 TOPICS IN ASSET PRICING (Panageas)
This course covers topics in the area of dynamic asset pricing, with a focus on the development of useful tools. Indicative topics include: Complete markets in discrete and continuous time, portfolio choice with dynamic programming and martingale methods, incomplete markets and portfolio constraints in partial and general equilibrium, limited participation, overlapping generations models, heterogeneous-agents models, investment-based and real-options models in partial and general equilibrium, asymmetric information, non-expected utility theory and asset pricing implications, behavioral models (optimal and rational inattention, hyperbolic discounting, commitment), dynamic global games and coordination. (=BUSF 35907)
39701 ADVANCED THEORY OF CORPRATE FINANCE & CAPITAL MARKETS (He)
This course aims to give a solid treatment of advanced corporate finance theories, with an emphasis on the recent development in connecting modern corporate finance models with financial intermediaries and capital markets. 1. In the first part, we start by covering classic corporate finance theories in static setting, including adverse selection, debt overhang, and the optimality of debt contract in various environments. We then go over dynamic corporate finance models, including Leland type models, and continuous-time contracting such as Holmstrom-Milgrom and DeMarzo -Sannikov. 2. In the second part, we will cover classic work horse models in market liquidity. The first set includes trading liquidity, such as Kyle, Glosten-Milgrom, Duffie-Garleanu-Pederson, and we will connect them to financing decisions of firms such as He-Xiong models. The second set is limited participation models such as static Allen-Gale and Holmstrom-Tirole models, followed by He-Krishnamurthy and Brunnermeier-Sannikov dynamic models with emphasis on intermediary asset pricing. 3. The third part is topics related to macroeconomics, with corporate finance micro foundations. Our tentative plan is to cover global games and its applications in modeling bank runs, classic investment models with agency frictions, and dynamic models of bubbles and crashes.
This class is only for second/third year PhD students from the Econ department and Booth. Students are expected to be familiar with game theory from standard PhD level Economic courses, recursive formulation and dynamic programing techniques from standard macroeconomics courses, and standard portfolio theories from PhD level Asset Pricing courses. Solid understanding of continuous-time stochastic calculus is greatly appreciated, and basic techniques (e.g., Ito's lemma) are required. Grades: Homework assignments (50%) and research project (50%, submitted in July 2014). PQ: Theory of Financial Decisions I, II, III; the Economics of Information (Harris); one asset pricing PhD course with a full treatment of continuous-time analysis (either Veronesi or Panageas). (=BUSF 35913)
39802 ADVANCED LAW AND ECONOMICS (Malani)
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. (=LAWS 55401)
40101 ADVANCED INDUSTRIAL ORGANIZATION I (Syverson)
This is the first course in a sequence in Industrial Organization taught jointly at the Ph.D. level in the Department of Economics and the Booth School of Business. The sequence covers recent theoretical and empirical approaches in several topics. This course focuses on productivity and industry evolution, advertising and search, product differentiation, vertical relationships, and strategic behavior. Materials: Carlton and Perloff, Modern Industrial Organization; Tirole, The Theory of Industrial Organization. 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. (=BUSF 33921)
40201 ADVANCED INDUSTRIAL ORGANIZATION II (Hortaçsu)
This is the second course in the Industrial Organization Field sequence. This course focuses on econometric models of consumer demand, dynamic models in industrial organization, structural estimation of auction, matching, and search models. Strong preparation and interest in econometric and microeconomic modelling and proficiency in statistical/mathematical programming packages (R/Matlab/Stata) recommended. (=BUSF 33922)
40301 ADVANCED INDUSTRIAL ORGANIZATION III (Carlton)
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 barriers to entry, adjustment costs, mergers, demand estimation, damage estimates, oligopoly theory, price fixing, optimal price discrimination, bundling, tie in sales, 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. Grades: Homework plus final. PQ: previous training in advanced economics or antitrust. (=BUSF 33923 =LAWS 99304)
40501 PRICE THEORY AND MARKET DESIGN (Weyl)
Price theory studies how the statistical behavior of large numbers of individuals in an economy can be summarized by simple prices. Market design asks how social institutions can be engineered in practical settings to operate more efficiently. This course uses the methodology of classical price theory to analyze classic problems of market design, to which they are well-suited but not frequently applied. We will use these principles to study, among many other questions, the efficient and equitable allocation of private goods, new alternatives to voting to allocate public goods and the best degree, the design of insurance markets and how to make markets statically competitive while ensuring appropriate incentives for innovation. The course employs and teaches students a range of techniques, from philosophical inquiry to computational methods that form complementary components of the price theoretic approach and are crucial to plausible and practical market designs. (=ECON 24210)
40603 MARKET DESIGN (Budish)
This course explores the theory and practice of market design, drawing on examples from entry-level labor markets, school choice procedures, kidney exchanges, course allocation procedures, internet marketplaces, and financial exchanges. The main assignment is to write a final paper, which studies either an existing organized market or an environment with a potential role for an organized market. (=BUSF 33915)
40801 INTRODUCTION TO THEORY-BASED EMPIRICAL METHODS WITH APPLICATIONS TO MARKET DESIGN (Hickman)
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 classmembers.
41001 BEHAVIORAL ECONOMICS (Thaler / Kamenica / Pope)
This is a research class aimed at Ph.D. students in economics, psychology, or related disciplines. Traditional economic theory is based on standard working assumptions which include unlimited rationality and complete self-control. Behavioral economics considers what happens in economic contexts when these working assumptions are modified to incorporate more realistic conceptions of human behavior. The role of markets is central to this study. We carefully consider conditions under which rationality of participants influences market outcomes. However, financial markets are not covered in detail, and this is not a finance class. Students will be asked to write frequent short papers and a more substantial research paper. (=BUSF 38912)
41100 EXPERIMENTAL ECONOMICS (TBA)
This course will provide the student with the necessary tools to be an avid consumer of the experimental literature and eventually a producer of the literature. These issues will be discussed through evaluation of both outstanding papers in the literature, and papers that fail to achieve their full potential. Thus, it will provide a summary of recent experimental findings and detail how to gather and analyze data using experimental methods. Students will be expected to carry out their own original empirical research to meet the course requirements. (=ECON 21800)
41800 NUMERICAL METHODS IN ECONOMICS (Judd)
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.
42100 AN INTRODUCTION TO DOING EMPIRICAL MICROECONOMIC RESEARCH (Levitt)
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. (=LAWS 99303)
42800 CREATIVITY (Galenson)
This seminar will study why and how creative people innovate. The emphasis will be on understanding the process by which innovators work, and measuring the timing of their creativity over the life cycle. Examples will be drawn principally from the arts – important modern painters. Including Cézanne and Picasso; poets, including Eliot and Frost; novelists, including Woolf and Hemingway; movie directors, including Welles and Godard; architects, including Corbusier and Gehry; and songwriters, including Dylan and the Beatles. The principal assignment will be a term paper that will examine the creative life cycle of one or more innovators of the student’s choice; students will present this research in progress to the class during the second half of the quarter. The empirical study of individual creativity is a new field, and there are many excellent research opportunities for students. (=ECON 22650)
42900 INNOVATORS (Galenson)
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 will survey 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. (=ECON 22600)
43400 TOPICS IN LABOR MARKETS AND MACROECONOMICS (Lopes de Melo)
The course will cover topics on the Macroeconomics of Labor Markets. We will cover recent advances in the literature, giving emphasis to theory as well as data issues. Topics will include employment fluctuations over the business cycle, partial and general equilibrium search theory, theories of wage formation, job and worker flow analysis, frictional wage dispersion and its interactions with labor market turnover, and firm and worker heterogeneity.
49900 INDIVIDUAL RESEARCH: For Required Research Paper: to be arranged between individual faculty and students – see Time Schedule for faculty Section Numbers.