University of Chicago: Department of Economics

Professor Emeritus Larry Sjaastad (1934-2012)

Professor Emeritus Larry Sjaastad (AB 1957, AM 1958, PhD 1961, University of Chicago, Economics) died on Wednesday, May 2, 2012. Sjaastad served as Professor in the Department of Economics for the period of 1962-2004. He made lasting research contributions in public finance and international economics, and had strong ties with Latin America in the form of research, teaching and students from the region at Chicago. He organized a highly productive Latin American Workshop, at which students and visitors presented research on Latin American topics. In addition, he supervised 139 PhD dissertations during his 42 years at Chicago. Prof. Sjaastad was awarded a Norman Maclean Award by the Alumni Association in 2008. A memorial service is being planned.

Glen Weyl Receives Kauffman Junior Faculty Fellowship

E. Glen Weyl, Assistant Professor, has been chosen to receive a Kauffman Junior Faculty Fellowship in Entrepreneurship Research. This prestigious and competitive award from the Ewing Marion Kauffman Foundation is awarded to junior faculty members who are actively pursuing research in the field of entrepreneurship.

New Book on China's Economy from Nobel Laureate Ronald H. Coase

Over half a century ago, Ronald H. Coase persuaded a room full of skeptical Chicago economists, including future Nobel laureates Milton Friedman and George Stigler, to take his point of view on an important question of law and economics. In the process, Coase refined an economic theory that would later win him the Nobel Prize in 1991. Since the publication of “The Problem of Social Cost,” the article that resulted from that discussion, its underlying idea - often called the Coase Theorem - has been applied to virtually every area of human activity. Recent applications include such issues as the sale of electromagnetic spectrum broadcast rights, and the problem of pollution.

Coase, the Clifton R. Musser Professor Emeritus of Economics, has written a new book on China's changing policy climate, How China Became Capitalist. "Anyone would be hard-pressed to find another economist that has shaped the direction of the field of law and economics as much as Prof. Coase," says co-author Ning Wang, PhD’02, an assistant professor at Arizona State University’s School of Politics and Global Studies. "In China, Coase has profoundly influenced the way its market economy has evolved...[H]e is probably the most well-known Western economist there."

At age 101, Coase already has set his sights on his next project: he plans to launch a journal entitled Man and the Economy, for which he will serve as founding editor. "We are going to do again for economics what I did with law and economics: We are going to establish a subject,” [he] says. "Economics has become a theory and math-driven subject, and I believe the approach should be empirical. You study the system as it is, understand why it works the way it does, and consider what changes could be made in order to improve the system." Read full article, with video.

May 10: Conference on Macroeconomic Fragility

The Becker Friedman Institute and the Institute for New Economic Thinking (INET) will host a conference focusing on "Macroeconomic Fragility," Thursday, May 10 at the Stevanovich Center at the University of Chicago. New research offering theoretical insights as well as empirical work will be presented, focusing on macroeconomic fragility, measurement of systemic risk, financial-macro interactions, and related topics. For full details including scheduled speakers and registration information, please visit the Becker Friedman Institute events page.

2nd Year Economics Ph.D. Student Wins Yahoo! Scientific Prize

Hanzhe Zhang has been selected as a winner in the 2012 Yahoo! Key Scientific Challenges Program in the Microeconomics and Market Design category. The award provides $5000 in unrestricted research funding, access to select Yahoo! datasets, as well as an opportunity to collaborate directly with Yahoo! scientists. Since 2009, Yahoo! has presented the award to about 35 graduate students each year in several categories, including computer science-related fields as well as economic and social systems. Previous winners in the Microeconomics and Market Design area include Visiting Research Scholar Scott D. Kominers ('10). Read full story at Yahoo! Labs News.

E. Glen Weyl in the New York Times

From "How To Prevent a Financial Overdose," by Gretchen Morgenson (New York Times, March 31, 2012):

"Two professors at the University of Chicago have raised an intriguing idea. In a paper published in February, Eric A. Posner, a law professor, and E. Glen Weyl, an assistant professor in economics, argue that regulators should approach financial products the way the F.D.A. approaches new drugs. The potential dangers of financial instruments, [they] argue, seem at least as extreme as the dangers of medicines.'" Read full article (registration may be required).

Further details are available in Posner and Weyl's paper, "An FDA for Financial Innovation: Applying the Insurable Interest Doctrine to 21st Century Financial Markets."

Nobel Laureate Roger Myerson Member of Governor Quinn's Illinois Budgeting for Results Commission

Roger B. Myerson, the Glen A. Lloyd Distinguished Service Professor and 2007 Nobel Laureate, has been appointed by Governor Patrick Quinn for a one year term on the newly instituted Illinois Budgeting for Results Commission. The commission has been charged with providing recommendations on how to improve Illinois' budget process and how to ensure that State resources are spent on those programs that are most effective at delivering results. After a series of community hearings, the Commission submitted its first report to the Governor and the General Assembly on November 1st, 2011. The commission made recommendations regarding current spending mandates, proposed outcomes regarding the Governor's priority areas, and overall percentages to be assigned to specific results areas. Myerson commented that "The Governor's budget speech this year was truly historic in its clarity of focus on the difficult decisions that must be made this year for the State of Illinois to have a sound and sustainable fiscal plan." In his State Budget Address, Governor Quinn stated "The Budgeting for Results process focused on our core priorities, and increased openness in the budget process...Sen. Dan Kotowski is chairman of the commission and worked closely with Sen. Pam Althoff, Rep. Will Davis, Rep. Ken Ganney, former budget director Steve Schorf, and many more including Roger Myerson, a recipient of the Nobel Prize in economics. Like these commission members, I believe in a timeless American truth, there is no problem we cannot solve if we put our hearts and minds to it. Since I've been Governor, we have already defied the doubters, by working together to enact landmark reforms."

Influential economic forecaster, Michael Mussa, dies at 67

In a career spanning four decades, Michael Mussa published widely on international economics as a leading figure in the analysis of balance of payments and exchange rate determination. An active contributor to research and public policy communities, Mussa held prominent roles in academia, financial advisory panels and nongovernmental organizations. Michael Mussa earned a bachelor's degree in economics and mathematics from the University of California, Los Angeles in 1970, and his economics doctorate from the University of Chicago in 1974. Mussa served as faculty at the Booth School of Business, from 1976-1991, teaching courses on international business and finance. He will be greatly missed. View full story »

James Heckman Remarks at the White House Early Learning Challenge Announcement

James Heckman was invited to speak at the White House on December 19th, 2011, following the announcement that nine states-- California, Delaware, Maryland, Massachusetts, Minnesota, North Carolina, Ohio, Rhode Island, and Washington-- would receive grants to invest in high-quality early learning and development programs through the Race to the Top-Early Learning Challenge grant competition. Watch Video.

Sam Kortum elected Fellow of the Econometric Society

Samuel Kortum, Professor in Economics and the College, Frisch Prize Medal Co-winner (2004), and Editor of the Journal of Political Economy, has been elected Fellow of the Econometric Society. The Econometric Society, founded in 1930, is the most prestigious learned society in the field of economics, with a world wide membership-- Fellows represent the highest authority of the Society, electing its Officers, Council and new Fellows in annual elections. The honor acknowledges Kortum for his significant contribution to economics. His research focuses on quantitative models of international trade, technology diffusion, and firm dynamics.

The Wall Street Journal interviewed Robert Lucas

Read "Chicago Economics on Trial"

Derek Neal selected as the next Grossman Prize Lecturer

Derek has developed a new undergraduate course entitled, "The Economics of Education" which is being offered for the first time in Spring 2011. The new course teaches students how to analyze the markets for educational services that build the skills that translate into wealth in modem economics. The course begins by exploring the sources of parental and student demand for education. Early lectures explore economic models of human capital, signaling, and spillovers that provide different ways to understand the value of education. These lectures also explore existing empirical evidence on the value of education.

John List nominated to the Academy of Arts and Sciences

The American Academy of Arts and Sciences announced its 2011 class of fellows on Tuesday, April 19. John List was among the 212 new fellows. View full story »

New Faculty

We are pleased to announce that E. Glen Weyl (Princeton University) will be joining us at the rank of Assistant Professor in the Department of Economics and in the College on July 1, 2011. His research focuses on pure and applied price theory, focusing on industrial organization. Alessandra Voena (Stanford University) will be joining us on July 1, 2012, at the rank of Assistant Professor in the Department of Economics and in the College, after a one-year postdoc at the Harvard Kennedy School. Her research focuses on applied microeconomics, applied econometrics and labor economics.  In addition, Richard van Weelden (Yale University) will be joining us on July 1, 2012, at the rank of Assistant Professor in the Department of Economics and in the College, after a one-year postdoc at the European University Institute in Florence.  His research focuses on microeconomic theory, applied game theory and political economy.

Lars Peter Hansen awarded BBVA Foundation Frontiers of Knowledge Award

The BBVA Foundation Frontiers of Knowlege Award in the Economics, Finance and Management category goes to Professor Lars Peter Hansen of the University of Chicago “for making fundamental contributions to our understanding of how economic actors cope with risky and changing environments”. View details »

Roger Myerson elected to membership in the Council on Foreign Relations (CFR)

Azeem Shaikh receives Alfred P. Sloan Foundation Research Fellowship for 2011. View details »

February 23 – March 16, 2011

The MFI will sponsor a workshop series on the use of text as data, organized by Matthew Gentzkow at Booth. This special four week workshop series will bring together researchers from a variety of disciplines, with speakers from the fields of political science, law, computer science, applied mathematics, and more. View details

James J. Heckman offers a provocative idea for reducing spiraling budget deficits and strengthening the economy: investing in early childhood development. View full story »

John List has been named the Homer J. Livingston Professor.

James J. Heckman elected to the presidency of the Econometric Society

Heckman has been elected Second Vice-President, will become First Vice-President in 2012, and President in 2013. Heckman is the Henry Schultz Distinguished Service Professor in Economics and the recipient of the 2000 Nobel Prize in Economic Sciences. His research integrates econometrics, economic theory and policy analysis.

The Econometric Society is an international society for the advancement of economic theory in its relation to statistics and mathematics. The Society aims to promote studies that attempt to unify the theoretical-quantitative and empirical-quantitative approach to economic problems by employing constructive and rigorous thinking characteristic of the natural sciences. The Econometric Society was founded in 1930, by Yale economist Irving Fisher and the Norwegian economist Ragnar Frisch, who later was the first economist to be awarded the Nobel Prize. Henry Schultz of the University of Chicago was a founder of the Society, and it is fitting that Heckman holds the Henry Schultz Distinguished Service Chair in Economics and Public Policy at the University of Chicago.

John List named by Forbes as one of seven powerful new economists View full story »

Roger Myerson honored at economics conference in Marseille, France

Roger Myerson, the Glen A. Lloyd Distinguished Service Professor of Economics, received the Medaille de Citoyen d'honneur de la ville de Marseille, making him an honorary citizen of Marseille, France. View full story »

John List awarded the Kenneth Galbraith prize by the American Agricultural Economics Association (AAEA)

The award was given for recognition of List’s “breakthrough discoveries in economics and outstanding contributions to humanity through leadership, research, and service.” In presenting the award the committee cited List’s pathbreaking work using field experiments in economics.

James Heckman elected into the Academia Sinica on July 8, 2010

Academia Sinica is an international research institution aimed at improving academic research conditions and standards through placing great emphasis on opening up new areas of intellectual endeavor. View details »

Gary Becker receives the 2010 Alumni Medal

Professor Gary Becker, AM’53, PhD’55, will receive the 2010 Alumni Medal at the Alumni Convocation at 10:30 a.m. on Saturday, June 5 at Rockefeller Memorial Chapel for his work as a Nobel Prize-winning economist. View full story »

Hansen Details 2011 Nobel Laureates' Impact on Econometrics

In a Bloomberg News article, Lars Peter Hansen highlighted the many valuable contributions of Chris Sims and Tom Sargent. View full story »

James Heckman elected into the National Academy of Education (NAEd)

The National Academy of Education is dedicated to the advancement of the highest quality education research and its use in policy formation and practice.

Robert Shimer elected as a fellow to the American Academy of Arts and Sciences

View a complete list of the 2010 class of new members »

Hugo Sonnenschein awarded BBVA Foundation Frontiers of Knowledge Award In Economics

Hugo Sonnenschein (New York, 1940) and Andreu Mas-Colell (Barcelona, 1944) share the BBVA Foundation Frontiers of Knowledge Award in Economics, Finance and Managemnt for extending the reach and applicability of general equilibrium analysis and for establishing the modern theory of aggregate demand. According to the jury’s citation, their work has helped achieve better models for the overall behavior of the economy, and particularly to interpret and empirically measure consumer behavior. View full story »

Top 100 Economics Schools Research Rankings for 2011

The University of Chicago, Department of Economics was ranked second among economics programs in a world-wide survey by Tilburg University. The Top 100 Economics Schools Research Rankings for 2011 was made based on publications, for the period of 2006-2010, in 36 of the top 68 leading journals in Economics, Finance and Econometrics.  View full story »

US News and World Report Ranking

The University of Chicago is ranked as the top graduate school for Economics in the nation by US News and World Report. We are proud to share this ranking with MIT, Harvard and Princeton. View the 2009 rankings »