DEPARTMENT NEWSLETTER • UNIVERSITY OF COLORADO AT BOULDER • FALL 2006 A Report from the Chair Nicholas Flores FACULTY NOTES

Dear Alumni and Friends Lee Alston recently published Since last year’s newsletter, we have had a the following papers: “Pork changing of the guard in the Department of for Policy: Executive and . Professor Keith Maskus’s term as Legislative Exchange in department chair ended at the beginning of Brazil” (with Bernardo Mueller), Journal of Law , the summer while I began a new four-year Economics , and Organization term as chair. On behalf of alumni, students, 22, Number 1, Spring 2006: staff, and faculty, I express thanks for Keith’s 87–114; “Career Mobility in leadership. Despite some difficult times for the Agriculture, 1890–1938” University of Colorado during Keith’s term, (with Joseph Ferrie), Journal of Economic History , December the department prospered and continues to 2005: 1058–1081. do so. Thanks to a university faculty fellowship, Keith will devote the 2006–2007 academic year Lee has made the following keynote addresses: at the to scholarly pursuit at CESifo (Joint Initiative Sorbonne, University of of the University of Munich’s Center for Eco- Nicholas Flores Paris, Invited Lecture Series, nomic Studies and the Ifo Institute of Eco- Paris, France, May 2006; at nomic Research) and, as usual, he will be hop - the European Society for the ping the globe presenting his research. I also This year H aˆle will teach courses in interna - New Institutional Economics, want to thank Professor Yongmin Chen for his tional policy and industrial organization. Invited Lecture, Corsica, France, May 2006; and at the service as associate chair of graduate studies Ufuk Devrim Demirel joins the economics 15th Congress of Interna- and Professor Ann Carlos for her service as department this year from the graduate pro - tional Land Registrars, Forta- associate chair of undergraduate studies. gram at the University of Virginia. Devrim is a leza, Brazil, November 2005. Professor Donald Waldman takes over as asso - macroeconomist whose research emphasizes During the past year Lee ciate chair of graduate studies and Professor the nature of macroeconomic policy in a vari - attended seminars and made Jeffrey Zax takes over as associate chair of ety of contexts. Drawing on theoretical macro - presentations at the following undergraduate studies. economic modeling skills, Devrim provides a events: Economic History Association Annual Meeting, sound theoretical justification for the pro- Toronto, Canada, September News Highlights cyclical monetary and fiscal polices that are 2005; International Society In the spring of 2006, the department success - observed in middle- and low-income emerging for the New Institutional fully recruited three new faculty members. market countries. Other research considers Economics, Annual Meeting, Haˆle Utar will join economics and the monetary policy in cases where governments Barcelona, Spain, September must rely on seigniorage to finance public 2005; Latin American and International Affairs Program this fall from the Caribbean Economics graduate program at Penn State University. services, how the size of government influ - Association, Paris, France, While H aˆle’s primary research field is industri - ences macroeconomic stability, and how opti - October 2005; 15th Congress al organization, her work also intersects with mal fiscal policy is affected by exchange rate of International Land macroeconomics, international trade, and policy. Devrim will teach graduate and under - Registrars, Fortaleza, Brazil, graduate macroeconomic theory. November 2005; Harvard . Drawing on theoreti - University, Research Group cal, statistical, and computational skills, H aˆle’s Our final spring 2006 recruit is Stephen on Political Institutions and dissertation work develops and estimates sever - Yeaple, who will join the economics depart - Economic Policy, Cambridge, al models of industrial evolution. In one paper MA, Dec 2005; The ment in the fall of 2007 as an associate profes - Sorbonne, University of Haˆle investigates the effects of foreign compe - sor. Considered among the very best young continued on page 2 tition on job creation/destruction for international trade in the world, Columbian metal product producers. In a sec - Stephen leaves the University of Pennsylvania ond paper she explores the effects of volatile to further strengthen our international trade macroeconomic environments on industrial evolution for Columbian apparel producers. continued on page 2 FACULTY NOTES (cont.) CU-Boulder Wins Fulbright Paris, ATOM Seminar, Paris, France, May 2006; American Fellowship for Vietnam Project University in Paris, Seminar, Paris, France, May 2006; University of Carlos III, Robert McNown has been awarded a Fulbright colleagues followed him back to CU-Boulder Seminar, Madrid, Spain, May Fellowship for a project to help train and bet - and eventually earned doctoral degrees. 2006; University of Illinois, ter equip Vietnamese economists. He will be in Robert has also been a visiting professor at the Program in Law and Eco- Vietnam from September through January to University of Sydney and the People’s nomics, Invited Workshop; teach econometrics at Hanoi National “The Future of the Com- University in Beijing, and a faculty member for Economics University. Econometrics is the sta - mons and AntiCommons,” Semester at Sea. “I like to challenge my world tistical modeling of economic phenomena, Chicago, IL, June 2006. view, learn from different cultures and get new such as growth or recession. M perspectives on my American life and the “Over the years I have developed computer- American economic system,” he said. Ann M. Carlos presented based instructional materials for economet - three papers at the XIV The Fulbright Scholar Program is sponsored rics,” Robert said. “For my Fulbright project in International Economic by the Bureau of Educational and Cultural Vietnam, I will be adapting these materials to History Conference held in Affairs of the U.S. Department of State. Helsinki, Finland, August open-source programs that are available on Established in 1946 under legislation intro - 2006. This international con - the Internet to make econometric tools acces - duced by the late Senator J. William Fulbright ference is held every four sible to researchers who are unable to pur - years. Also, Ann is the recipi - of Arkansas, the program’s purpose is to build chase expensive proprietary software.” ent of the 2006 Boulder mutual understanding between the people of Faculty Award, Excellence in Robert’s 2006 Fulbright award is the second of the and other countries. Service. Faculty service is defined as all of those profes - his career. From 1979 to 1981, he was a Recipients are selected on the basis of academ - sional activities other than Fulbright lecturer in Nepal, teaching econo - ic or professional achievement and because teaching and research that metrics to students who had only primitive cal - they have demonstrated extraordinary leader - are performed by faculty culators. Four of his Nepalese students and ship potential in their fields. members as part of their uni - versity and departmental responsibilities or as commu - nity outreach. In addition, Ann has accepted the ap- From the Chair, continued from page 1 pointment of the faculty director of the Sewall group. Stephen has made significant contribu - Enhancement Fund and other programs in Residential Academic tions in trade theory, the statistical estimation the economics department. Your contributions Program effective August of foreign direct investment models, and tech - help maintain the department’s tradition of 2006. The Sewall Program is nology transfer. Stephen is a faculty research excellence. Information on giving to the for first- and second-year stu - fellow at the National Bureau of Economic department is provided in the newsletter. If dents interested in the American West and a liberal Research and associate editor of the Journal of you have any questions, please feel free to con - arts education. Finally, in International Economics. For the 2006–2007 aca - tact me directly. September 2006, Ann was demic year, Stephen will be visiting Princeton elected vice president of the University on the Peter B. Kenen Fellowship. Celebrating 50 Years Economic History Once on campus, Stephen will teach courses in Association. Plans are now in place for our department’s international trade. 50th year celebration. Festivities will begin the M Turning to news highlights for current faculty, evening of Friday, October 27, 2006, with a Nicholas Flores hosted the 7th Professor Robert McNown was awarded a pres - reception at the Koenig Alumni Center on Annual CU Environmental tigious Fulbright Fellowship (see story in this campus. On Saturday, October 28, there will and Resource Economics newsletter) and will spend time away this aca - be several economics panel discussions during Workshop on September 23 the day and a celebration dinner that evening and 24, 2005 in Vail, Colo- demic year teaching econometrics in Vietnam, rado. He has served as the with other visits planned to Thailand and Nor- at the Hotel Boulderado. The guest speaker 2006–2007 program commit - way. This year Professor Murat Iyigun became for Saturday evening is economics department tee chair for the Association a research fellow at both the Institute for the alumnus Don Grusin. Don has worked in of Environmental and Study of Labor in Bonn, Germany, and the many aspects of the music business as a musi - Resource Economics; on the Center for International Development in the cian, arranger, producer, and composer. Don Minority will treat us to music and a special talk about Fellowship Selection Panel, Kennedy School at Harvard University. Murat which is administered by the will spend much of the spring at the Center how CU economics training and the University National Research Council, for International Development. In September of Colorado so profoundly influenced his life. March 2006; and as a grant 2006, Professor Ann Carlos was elected vice Invitations have been mailed. If you have not continued on page 3 president of the Economic History Association. received yours, please call 303-735-5500 or Finally, Professor Mushfiq Mobarak will be a e-mail [email protected] to visiting professor in the economics department request one. Additional information is posted at Yale University for fall 2006. on the department’s website at www.colorado .edu/economics. Please mark your calendar Alumni and Friends Financial Support for this special celebration. We appreciate the generous contributions Nicholas Flores made in the past year to the Faculty

2 Why Do So Many People in Poor FACULTY NOTES (cont.) selection panelist for the Countries Marry Their First Cousin? National Science Founda- tion. Also, Nicholas was a participant at the North American THORPEX A. Mushfiq Mobarak Societal and Economic Research and Applications The topic of marriage between cousins usually regions of the world where this practice is Workshop, August 2006. He produces a response among Americans that common. Recently, a British member of presented papers at seminars varies between a facial cringe and an “Eeeww!” Parliament representing Bradford, an area at the Colorado School of Mines, the National Center Most Americans are surprised to discover that where many immigrants of Pakistani origin for Atmospheric Research, over 50 percent of all marriages in Pakistan reside, proposed a ban on consanguineous and the University of are between first cousins. marriage citing the possibility that the pre - Minnesota. sumed genetic diseases associated with the Geneticists have long pointed out the biologi - M practice have the potential to stress the British cal risks to the offspring of first cousin unions, medical system. Without a better understand - Frank Hsiao attended the and if we are to believe the numbers pro - ing of the socioeconomic origins of this prac - 2006 Allied duced by population geneticists, there is a 4.4 tice, it is not easy to judge whether such a ban Associations (ASSA) Annual percentage point increased risk of mortality Meeting in Boston, and is called for, and also, it may not be an for such children. Even in a high infant-mor - served as a discussant at a ses - enforceable ban if the community has strong tality environment like Pakistan, this increases sion on economic develop - enough reasons to continue the practice. This ment sponsored by the the baseline risk of infant death by as much as research project aims to inform such policy Association of Indian 50 percent. This makes it quite puzzling that debates by gaining a deeper understanding of Economic Studies (AIES). In so many people in the developing world July he presented a paper on the social, economic, and biological forces at would continue to marry their biological rela - “FDI, Exports, and Growth in play in the decision to marry a biological rela - tives, a practice referred to as consanguinity. East and Southeast Asia— tive. The high rates of reported consanguinity and Evidence from Time-Series and Panel Data Causality of mortality make it equally puzzling why Also, in spite of the reported numbers on the Analyses” (with Mei-Chu W. Pakistan has not already experienced some adverse effects of consanguinity, it is actually Hsiao) at the 2006 Interna- sort of genetic implosion. not clear how large the negative effects really tional Conference on Korea are. This is because all the numbers that are and the World Economy V at Pointing to a lack of understanding of the bio - currently cited are based on comparisons of the Korea University in logical risks is by itself not a satisfactory Seoul, South Korea. After the the health of children of first cousin unions answer, since even cultures with no knowledge Korean conference, he was against children from other families. Such raw of genetics could have probabilistically invited to speak at the Asia comparisons do not take into account the pos - observed the greater incidence of mortality or Program of the Woodrow sibility that the families selecting into consan - Wilson International Center genetic deformities among consanguineous guineous unions may have other characteris - for Scholars, where he talked progeny over centuries, and could have react - tics that independently predispose them about Taiwan’s foreign direct ed in response. Indeed, many Western soci - investment in China and toward higher mortality and morbidity rates. eties and the Roman Catholic and Orthodox Taiwan–China trade rela - For example, if families whose daughters are churches long ago developed social preju - tions. Currently, he is an more likely to marry a relative have, on aver - invited member of the U.S. dices, religious taboos, or laws to prohibit mar - age, less understanding of proper nutrition Student Fulbright National riages between close relatives. We therefore and sanitation practices, then their mortali - Screening Committee East might expect similar norms to develop across Asia Program of the Institute ty/morbidity rates may be amplified relative to all cultures, but somehow they have not. of International Education, other families, and if we fail to take this into New York. His previous These and other puzzles led a research team account, we could wrongly attribute the paper, “‘Miracle Growth’ in comprised of Dr. Mushfiq Mobarak and Dr. adverse health effect to consanguinity. the Twentieth Century— Murat Iyigun from the CU-Boulder International Comparisons of Using data collected in rural Bangladesh, this Department of Economics, Dr. Nizam Khan East Asian Development” research project explicitly recognizes the prob - (with Mei-Chu W. Hsiao), from the CU-Boulder Institute of Behavioral lem family characteristics that are independent originally published in World Science, and Dr. Alan Bittles from the Centre of consanguinity poses for measuring the Development , February 2003, for Human Genetics in Perth, Australia, to 31(2), pages 227–257, was in adverse effects of consanguinity. The availabil - ask the following question in a project that is the Elsevier’s ScienceDirect ity or unavailability of a suitable cousin for funded by the U.S. National Science TOP25 (12th) Hottest marriage provides a statistical control that Articles for World Develop- Foundation: allows the researchers to separately measure ment. The TOP25 Hottest Are there countervailing socioeconomic benefits the effects of family characteristics and consan - continued page 4 of consanguineous unions that, despite their guinity on mortality/morbidity rates. biological risks, help to sustain the incidence of such For more information about this project, marriages? please feel free to contact Professor Mushfiq Understanding both the reasons behind con - Mobarak, [email protected]. sanguinity and its true biological risks are important, especially in view of the large influx of immigrants into the U.S. from

3 FACULTY NOTES (cont.) “We Shall Overcome!” Articles are determined quar - terly and based on down - loads from the preceding John Meinen quarter. The paper can be downloaded free of charge from http://top25.sciencedi - She sits on a straw mat inside a mud hut. Two Her name is Mumtaz. At a very young age, a rect.com/index.php?cat_id=6 plastic, cherry-colored bangles hang from her dowry was paid and Mumtaz found herself in &subject_area_id=23&jour - wrist, the only jewelry she owns. Her black hair bed with a stranger; a teenage virgin becomes nal_id=0305750X. is pulled back beneath her emerald-green sari, a wife. Nearly nine months later, a baby boy M which, like the hundred taka note she presses was born. Three more children followed— beneath her thin, delicate fingers, was colorful another strapping son and two beautiful Murat Iyigun became a fellow once upon a time. Although her clothes have daughters. of the Institute for the Study worn and faded, her smile has not. She is of Labor (IZA) in Bonn, Shortly after the birth of her fourth child, poor, as are the 40 other women seated beside Germany, last academic year. Mumtaz’s husband unexpectedly died. In He also became a research her. But she sits tall and proud. And that Bangladesh, where purdah keeps millions of fellow at the Center for smile! International Development women indoors and at the margins of society, (CID) at the Kennedy School Sunlight pours through the holes in the tin the death of a husband is a mortal blow to his of Harvard University. He will roof above us and children peer through wife and to his children. Most women in rural spend spring 2007 at Harvard cracks in the mud walls. Outside, indignation Bangladesh have never studied beyond pri - and will receive $22K as a fel - conflates with laughter as the older, much mary school and are forbidden from working lowship stipend. Murat pre - sented or will present papers stronger kids push the younger ones aside, all outside of the home. Therefore, when the at the following venues: NYU, of them vying for a view of the white-skinned grim reaper robs a woman of her husband, he Columbia, Northwestern, stranger sitting with their mothers on the dirt takes the family’s breadwinner with him; and USC, Queen’s University floor. the husband’s family often takes what little is (Canada), Sabanci University left behind. Indeed, a poor Bangladeshi wife (Turkey), AEA 2006, AEA Just yesterday, I found myself in a similar set - like Mumtaz can easily become a homeless, 2007, Society for Economic ting, only this time it was children who sat penniless widow overnight. Dynamics Meetings, Van- cross-legged indoors, their parents busy toiling couver, Canada, 2006, Eco- nomic History Association underneath the hot, Bangladeshi sun. The Such was Mumtaz’s fate; that is, until she dis - Meetings, Pittsburgh, 2006. teacher and the students of this small, one- covered Bangladesh Rural Advancement room school are thrilled to have a visitor, and Committee (BRAC)—or, more aptly, BRAC The following is a list of his recently published papers: the children are asked to sing him a song. discovered her. BRAC, which humbly began as “Adaptive Skills, Techno- They rise from their seats on the floor, the a small relief organization in the wake of logical Progress, and Growth” taller ones having to duck to avoid the mobiles Bangladesh’s war for independence, has since (with Ann L. Owen), Euro- hanging from the ceiling. They look at each grown to become the largest, private develop - pean Economic Review , 2006, other nervously, not knowing what song to ment organization in the world. As part of its 50:3, April, 565–79; “Clusters sing or when to start. Sensing their apprehen - holistic approach to poverty alleviation, BRAC of Invention, Life Cycle of Technologies, and Endo- sion, the teacher prods them along. “Sing your provides small loans to landless, assetless genous Growth,” Journal of favorite song,” she says. “You know which women without any collateral required. The Economic Dynamics and one.” The students nod in agreement. An only condition is that women form small Control , 2006, 30:4, April, inaudible three-count ticks off in their heads, groups of five and attend the village organiza - 687–719; “Geography, and they begin. A friend translates for me, tion’s weekly meetings where they deposit a Demography, and Early Development,” Journal of whispering beneath the harmony: few taka into their savings account. In addi - tion, they must make 18 promises including a Population Economics , 2005, We shall overcome, we shall overcome, promise to use sanitary water, send their chil - 18:2, June, 301–21. We shall overcome someday; dren to school, be honest, and fight corrup - Murat also published a book Oh, deep in my heart, I do believe, tion and injustice. chapter in an MIT Press pub - We shall overcome someday. lication on growth: “On the continued next page Efficacy of Reforms: Policy “We shall overcome!” Looking at the woman Tinkering, Institutional now before me, these three words float to my Change, and Entrepreneur- memory and ring in my ears. Everything about ship” (with Dani Rodrik), in Institutions and Growth , T. this woman—her washed out clothes, her back New! Eicher and C. G. Penalosa, erect and head held high, her wrinkled hands Electronic Communications eds., MIT Press, December and face, her smile—speaks silently to me a 2005. tale of happiness and hardship, a life beset by The department is exploring the possibility of continued on page 5 incredible obstacles and the joy and liberation enhancing delivery of the newsletter and other that comes when they’ve been crossed. Just department communications using e-mail in looking at her, I know she has overcome. addition to regular mail. If you would like to receive electronic communications, please But she has yet to tell her story. And I don’t even know her name. “What is it?” I ask her. complete the “Let Us Hear From You” form in “And why are you here, sitting with these this newsletter. Be sure to provide/update your other women inside a small, humid hut?” e-mail address. Or, e-mail the information to [email protected].

4 After joining a small group and attending a tantly, thanks to her own courage and resolve, FACULTY NOTES (cont.) week-long orientation, Mumtaz was welcomed her daughters will likely be able to stand up and sing, “We have overcome.” into the village organization. Every Wednesday Wolfgang Keller started a new for the past three years, Mumtaz has attended research project for which the weekly meeting, deposited Tk 10 into her firms in the Mexican deter - savings, and made the 18 promises. Within her John Meinen (BA ’04) wrote this essay while spend - gent industry were inter - first month as a member, Mumtaz was eligible ing three months in Dhaka and in rural viewed. Sponsored by the for her first loan: Tk 4,000 ($58). Mumtaz Bangladesh interning with Bangladesh Rural , the project aims at a better understanding of used the money to purchase some shoes, Advancement Committee’s (BRAC) microcredit divi - how NAFTA’s trade and for - which she sold at the local market. Her busi - sion. His honors thesis, written under the supervi - eign direct investment liber - ness fared well, thanks to her drive and the sion of Professor A. Mushfiq Mobarak, combined alization interacted with the help of her two sons, who dropped out of high household survey data with regional electoral data entry of Wal-Mart into school to help with the business. After a year, from Nigeria to statistically examine the political Mexico in reshaping the economy consideration in the allocation of health industrial landscape in this Mumtaz was eligible for an even greater loan: market. Tk 6,000. A year after that, she was able to services across Nigerian districts. After graduation, manage a Tk 10,000 loan. Her business is John worked as an Americorps VISTA volunteer in a M doing great and the profits are being pumped nonprofit business development center set up to foster James Markusen presented back into the household: a brand new tube entrepreneurship in the impoverished West Contra papers in many international well, sanitary latrines, new clothes for the kids, Costa County in California. As a student he was cities: Kiel, Germany; and her proudest investment, her daughters’ passionate to learn more about microcredit programs Copenhagen, Denmark; school tuition. as a development and poverty eradication strategy, a Stockholm, Sweden; and concept he was introduced to in a development eco - Dublin, Ireland. He also gave “My dream,” she says with a sparkle in those a keynote address at a confer - nomics course taken at CU-Boulder. In 2006 he large, walnut eyes, “is that my daughters get a ence in Dunedin, New sought out an internship with BRAC, one of the good education. I don’t want them to marry Zealand, in March 2006. Jim worlds largest development-oriented NGOs. BRAC is plans to continue his travels early. I want them to become doctors or also the local collaborator for two of Professor this fall presenting papers in teachers. Already, my daughters are reading at Mobarak’s field research projects in Bangladesh (on Copenhagen, Brussels, grade 10.” There it is again, that indelible London, Stockholm, and the consequences of indoor air pollution and on con - smile. In a country where nearly 69 percent of Tokyo. straints to new technology adoption). all adult women are illiterate, she has good M reason to. Thanks to BRAC and, more impor - Keith Maskus was awarded a faculty fellowship by CU- Boulder, which funds a full- year sabbatical to undertake research on the general issue of the economics of intellec - tual property for basic sci - A Professional Journey ence. During his sabbatical, Keith will spend September and October 2006 as visiting Josh Wimpey, (MA ’04) professor at the University of Munich, February through On a recent trip back to Colorado from my eral months of networking and resumé-build - April 2007 as visiting profes - ing, I was fortunate to land at the World Bank sor at the University of home in Washington, D.C., I enriched my rig - Beijing, and May 2007 as vis - orous schedule of mountain biking, hiking, headquarters. iting professor at the and reconnecting with old buddies with an For nearly two years now, I have been working University of Adelaide. important meeting—with my former CU grad - as a consultant at the bank in an independent M uate economics department advisor, Nick evaluations group, performing analysis that Flores. After all, I couldn’t just hang out my A. Mushfiq Mobarak is the ultimately informs bank policy. My days are principal investigator for the whole vacation; I had to have a little intellectu - largely spent analyzing data, attending meet - al stimulation, too. following grants: National ings to discuss policy implications related to Science Foundation (NSF), While Nick and I caught up on the two event - this analysis, stopping in on the most interest - “Materials Use: Science, ful years I’d had post graduation, he asked if I ing of the guest lecturers (most notably Tom Engineering and Society Friedman of the New York Times ), and catching Grant,” 2006–10, $1,100,000, might write a piece about my professional John Spear, co-principal journey for this newsletter. Perhaps I could seminars on all aspects of development and investigator; and CU/NICHD give my younger peers a glimpse into what occasional speeches from former bank presi - Population Center Pilot, they can expect next spring after they receive dent James Wolfenson and his successor Paul $10,000, Tania Barham , co- their diplomas. I chuckled a bit at this Wolfowitz. principal investigator. Mush- thought, since graduating might’ve been the fiq also has secured grants So how did I get here, working for the largest continued on page 6 last thing on my mind the fall of my second development institution in the world? year! (I was more concerned about getting through macro.) I am reminded of a lecture by CU’s own Phil Graves about choosing a place to live when As I surveyed the job landscape that spring of you graduate. The moral of the lecture was 2004, it immediately became clear I would that having unique tastes relative to others in have infinite job possibilities if I moved back to my hometown, Washington, D.C. After sev - continued on page 6

5 FACULTY NOTES (cont.) Alumni Notes for research on indoor air Peter J. Bonfante (BA ’00) Denise E. Konan (PhD ’93) pollution in Bangladesh: received his Juris Doctorate at Loyola Law is the interim chancellor at the University of Hewlett Foundation Travel Grant, $2500; Environmental School in May 2004. He is currently employed Hawai’i at Mãnoa. Prior to this appointment, Ventures Program, Woods as an attorney at Paul Hastings, Janofsky & Denise was a professor and chair of the UH Institute for the Environment Walker Associates in Los Angeles. Mãnoa Department of Economics and previ - Grant, $150,000, 2006, Grant ously served for three years as interim assistant Arnoldo Rosenberg Boresztein (PhD ’69) Miller, co-principal investiga - vice chancellor for academic affairs. tor; and Walter Shorensetin is a professor of economics and finance, and Asia-Pacific Research Center main researcher at Centrum (the graduate Jose-Antonio Lopez (MA ’96) Pilot Grant, $30,000, 2006, business school), at Pontificia Universidad is currently employed in the strategy depart - Grant Miller, co-principal Catolica del Peru, www.centrum.pucp.edu.pe. ment with Electricite de France in Paris. investigator. Arnoldo was awarded a U.S. Fulbright Grant Normally based in London (with EDF Energy, M to study at the University of Colorado at the United Kingdon arm of EDF), he is on an Boulder from July 1965 to August 1968. His extended expatriation assignment in Paris due Anna Rubinchik-Pessach has presented her paper “Con- advisor was John (Jack) Powelson. Arnoldo to an internal promotion as the director of the tests with Heterogeneous also holds a BA (’65) and Economist title department. Agents” (co-authored with S. (’65), both from UNMSM, Lima, Peru. O. Parreiras) at the Micro Geetha Rajaram (PhD ’04) (Economic) Theory Seminar Jeffery H. Burton (BA ’74) has a new position in southern California at at the University of North received his master of science degree in eco - Whittier College. Whittier College is a four- Carolina at Chapel Hill (sem - nomic history at the London School of year independent residential liberal arts col - inar jointly sponsored with Economics in 1975, and his juris doctorate at lege distinguished by its small size, nationally Duke University), September 2005; at the Microeconomics George Washington University in 1982. He is recognized liberal arts curriculum, and innova - Seminar at Queen’s Univer- currently employed as the general counsel of tive interdisciplinary programs. operations at Norfolk Southern Corporation sity, Kingston, Canada, W. Douglass Shaw (PhD ’85) October 2005; at the 2006 in Virginia. North American Summer is a professor at Texas A&M University, in Meeting of The Econometric Shuichi Inada (MA ’84) College Station, Texas. He teaches one under - Society, Minneapolis, is currently the director of the Radio Policy graduate and one graduate course per year in Minnesota, June 2006; and at Division in the Telecommunications Bureau at environmental and resource economics. His the 17th International the Ministry of Internal Affairs and current research focuses on connections Conference on Game Theory at Stony Brook University, Communications in Tokyo, Japan. He also between risk and uncertainty and the environ - July 2006. holds a bachelor’s (’77) and a master’s (’79) ment and he is currently the principal investi - degree in engineering from Kyushu University. gator on grants from the U.S. EPA and the Anna also presented the National Science Foundation. He and his wife, paper “Intergenerational Kristin Klopfenstein (PhD ’99) Lynn Stuart (PhD ’85), have three girls (a 14- Equity and the Discount Rate was promoted to associate professor with for Cost Benefit Analysis” year-old and 11-year-old twins). (with J-F. Mertens) at a facul - tenure in the Department of Economics at ty seminar at Stony Brook Texas Christian University in May 2005. Kristin Sara E. Gorton Slattery (BA ’03) University, New York, in also conducts research in the economics of was the winner of the women’s elite race of March 2006; at CORE, education as a faculty research fellow at the the Bolder Boulder on May 26, 2006. She Université Catholique de Texas Schools Project, housed at the University continued next page Louvain Conference on of Texas at Dallas. Her son, Dillon, will be one Intergenerational Equity in Climate Negotiations, year old this November. Overlapping Generations Models and Social Welfare, in April 2006; and at the 2006 North American sum - Journey, continued from page 5 Another unique amenity has to do with my job mer meeting of the Econo- title: consultant. Those three syllables convey metric Society, Minneapolis, your locale creates the opportunity for you to job insecurity, quarterly estimated tax pay - Minnesota, June 2006. enjoy a subset of amenities without having ments, and for me, blessed flexibility. The M them factored into your rent/cost of living. thrifty habits honed during my extended aca - demic journey have allowed me to easily swal - Thomas Rutherford recently So, I started thinking, “What amenities am I low the insecurity of my tenure and avoid published the following: uniquely amicable toward here?” Certainly it quarterly percussive cash shocks when taxes “The Economic Effects of isn’t the heavy traffic or relatively high price Border Measures in Sub- are due. And flexibility, the remaining job of goods and services. And, although I am global Climate Agree- characteristic, is the amenity that can be intermittently amused and saddened by poli - ments”(with Mustafa H. uniquely afforded through wealth or through Babiker), The Energy Journal , tics and politicians, governmental proximity thrift, the latter of which recent graduates doesn’t get a check in the “plus” column. continued on page 7 have a distinct advantage in. Proximity to my friends and family, however, does get a big check in the uniquely enjoyed Heck, I’ll put up with a little insecurity if it column. (Not that everyone else in Virginia means lengthy vacations to Colorado when I doesn’t enjoy close proximity to my friends feel like taking off, not when I’ve earned the and family; they simply don’t enjoy it nearly as days. much as I do.)

6 FACULTY NOTES (cont.) Undergraduate News clinched the title in a dramatic victory, win - 26(4):101–128, 2005; “Trade ning by one second. Slattery is a two-time Two undergraduate economics majors, and Direct Investment in NCAA track champion. Noah Johnson and Ali Pasha, have won Producer Services and the National Security Education Program schol - Domestic Market for Exper- Aaron Strong (PhD ’04) arships. The NSEP scholarships, funded by tise” (with James R. Markusen has taken a position at Arizona State a federal program, are designed to encour - and David Tarr), The Canadian Journal of Economics , University. He is a post-doctoral fellow work - age undergraduate study in areas of the 38(3):758–777, 2005; “Review ing with V. Kerry Smith. His research projects world critical to national security. The of Economic Models of include: resilency of the economy in the face scholars then commit to seek work in the Climate Change: A Critique of supply shocks due to terrorist attacks and federal government after their studies. by Stephen J. DeCanio,” The natural disasters; the role of climate change, Noah, a senior economics and political sci - Journal of Economic Literature urban heat island effect, and air pollution on 43(2), 2005; “Equity and ence double-major, will study in China. Ali, Efficiency Costs of Raising housing choice; and invasive species and their a senior economics and journalism double- Tax Revenue in Columbia” effects on public lands and rivers. major, will study in Jordan. The awards are (with Miles Light, PhD ’01), for the academic year. These prestigious In Fiscal Reform in Columbia, Remembrance scholarships are very difficult to win. Three Problems and Prospects , CU-Boulder students won $20,000 NSEP R.M.Bird, J.M.Poterba, and J. John J Korbel (PhD ’74) Slemrod, editors, MIT Press, scholarships this year. We are proud that 2005. died on June 10, 2004, of complications from two of the three are economics majors. pneumonia. He was born Dec. 13, 1918, in M Havanna, Cuba. Although John was American, he was raised primarily in Europe. He gradu - Carol Shuie has been asked by Gary Libecap, president of ated from Harvard in 1939 and later earned was a professional of great promise, as well as a the Economic History Asso- an MBA and a PhD, also from Harvard. warm and thoughtful individual. He was a pro - ciation, to award the Alex- During World War II he served in the Navy. fessor of economics at KIMEP. He is survived ander Gerschenkron prize He taught economics at the University of by his wife and two sons. for the best dissertation on a Wisconsin and the University of New non-U.S. topic at the associa - James George Lynch (MA ’90, PhD ’98), tion’s 2006 meeting in Pitts- Hampshire in the Whittemore School of of Arlington, Virginia, died of cancer this past burgh. She was a finalist for Business, from which he retired. His wife, July. Jim was a labor economist whose disserta - this prize herself in 1999. Isobel Albrecht, died in 1998. He is survived tion uncovered several novel effects of prizes Also, Carol has been invited by four children and two grandchildren. in tournaments. His work has been published to join the prestigious In the past year, the department has suffered in the Journal of Economic Behavior and London-based research net - Valeriy work Centre for Economic two tragedies. Last summer, Organization and the Journal of Sports Economics . Policy Research (CEPR) to Gauzshtein (MA ’97, PhD ’03) was killed in an Jim had embarked on a career in public serv - continue her work on eco - automobile accident in Kazakhstan. Valerie ice at the U.S. Department of Labor. Moreover, nomic history and interna - was a public economist whose dissertation he was a good friend and a cheerful colleague. tional trade. introduced several innovations into the empir - He is survived by his wife, Christine McDaniel ical analysis of local government behavior. He (PhD ’99), and one son.

7 Department of Economics 2005–06 Seminar Series

08/26/05 11/11/05 Raymond Fisman, Antonio Merlo, University of Pennsylvania “Privatization and Commitment – Evidence from the Indian “Political Careers or Career Politicians?” Electoral Surprise” 11/14/05 08/30/05 Sumner LaCroix, University of Hawaii , Massachusetts Institute of Technology “Company Colonies, Property Rights, and the Extent of “Does Hazardous Waste Matter? Evidence from the Housing Settlement: A Case Study of Dutch South Africa, 1652-1795” Market and the Superfund Program” 11/18/05 09/01/05 Wolfram Schlenker, Columbia University Scott Savage, University of Colorado at Boulder “The Impact of Global Warming on U.S. Agriculture: An “Regulated Prices with Competition and Heterogeneous Econometric Analysis of Optimal Growing Conditions” Consumers” 12/02/05 09/08/05 Zvi Eckstein, Tel Aviv University Anna Rubinchik-Pessach, University of Colorado at Boulder “From Farmers to Merchants, Voluntary Conversions and “Asymmetric Contests with Incomplete Information: Diaspora: A Human Capital Interpretation of Jewish History” the N-player Case” 12/08/05 09/16/05 Kyle Bagwell, Columbia University Joseph Harrington, Johns Hopkins University “Trust, Reciprocity and Favors in Cooperative Relationships” “Optimal Corporate Leniency Programs” 01/17/06 09/23/05 Fang (Annie) Yang, University of Minnesota Luis Cabral, “Consumption Along the Life Cycle: How Different Is “The Dynamics of Seller Reputation: Theory and Evidence Housing” from eBay” 01/20/06 09/30/05 Gunjan Sharma, University of Maryland Lee Ohanian, University of California at Los Angeles “Competing or Collaborating Siblings? Industrial and Trade “The International Great Depression: A Productivity Puzzle” Policies in India”

10/07/05 01/23/06 Stephen Redding, London School of Economics Devrim Demirel, University of Virginia “The Costs of Remoteness: Evidence from German Division “Macroeconomic Stabilization in Emerging Market and Reunification” Economies: The Role of Risk Premium”

10/17/05 01/25/06 Frank Stähler, University of Otago Latika Chaudhary, University of California at Los Angeles “Partial Ownership and Cross-Border Mergers” “Social Divisions and Public Goods Provision: Evidence from Colonial India” 10/21/05 Robert Pollak, Washington University 01/26/06 “Efficiency in Family Bargaining: Living Arrangements Anthony Landry, Boston University and Caregiving Decisions of Adult Children and Disabled “Expectations and Exchange Rate Dynamics: A State- Elderly Parents” Dependent Pricing Approach”

10/28/05 01/30/06 Pol Antràs, Harvard University Stephen Yeaple, University of Pennsylvania “Contracts and the Division of Labor” “How do Multinational Firms Sort?”

11/04/05 02/03/06 Simon P. Anderson, University of Virginia Hâle Utar, Pennsylvania State University “Media Mergers and Media Bias with Rational Consumers” “Employment Dynamics and Import Competition”

11/10/05 02/07/06 Martha Bailey, University of Michigan Vasco Curdia, Princeton University “More Power to the Pill: The Impact of Contraceptive “Monetary Policy under Sudden Stops” Freedom on Women’s Labor Supply”

8 Department of Economics 02/16/06 Edward Balistreri, Colorado School of Mines “Dis-economies of Money and Optimal Inflation” 2005–2006 Awards

02/24/06 Anna Rubinchik-Pessach, University of Colorado at Boulder “Intergenerational Equity and the Discount Rate for Stanford Calderwood Faculty Teaching Award Cost-benefit Analysis” Keith Maskus 03/03/06 Stanford Calderwood Student Teaching Award Sam Bucovetsky, York University Denni Purbasari “Preventing Public Input Competition” Graduate Award for Public Policy Research 03/09/06 Megan Harrod Richard Dusansky, University of Texas Reuben A. Zubrow Fellowship in Economics “On the Microeconomics of the Demand for Housing” Jason Pearcy and Eric Stuen

03/10/06 James C. Campbell Graduate Fellowship Marius Schwartz, Georgetown University Stephen Billings and Joshua Sidon “Compatibility Incentives of a Large Network Facing Multiple Rivals” Morris E. Garnsey Fellowship Yiting An and Molly Lipscomb 03/17/06 Dan Ackerberg, University of Arizona Leslie Whittington Memorial Prize for “Structural Identification of Production Functions” Excellence in Economics Samuel Raisanen 03/22/06 Patrick Kehoe, Federal Reserve Bank of Minneapolis Leslie Whittington Endowed Fellowship in Economics and University of Minnesota Christina Peters “Time-Varying Risk, Interest Rates, and Exchange Rates in General Equilibrium” Yordon Prize in Microeconomics Tianle Zhang 04/03/06 George W. Zinke Fellowship in Economics Josep M. Vilarrubia, Bank of Spain Jessica Vechbanyongratana “Neighborhood Effects in ” Best Published Faculty Paper in Public Policy 04/07/06 Terra McKinnish Scott Stern, Northwestern University “Importing the Poor: Welfare Magnetism and “Do Formal Intellectual Property Rights Hinder the Free Cross-Border Welfare Migration” Flow of Scientific Knowledge? An Empirical Test of the Anti- Journal of Human Resources , Winter 2005. Commons Hypothesis”

04/14/06 Val B. and Helen W. Fischer Scholarship for Academic Phil Graves, University of Colorado at Boulder Superiority in the Social Sciences “On the Valuation of Pure Public Goods” Economics Roman Yavich Danielle Maren Gauldin 05/01/06 Brittany Perry Nisvan Erkal, University of Melbourne Anthropology Diana Zucco “Optimal Sharing Strategies in Dynamic Games of Research and Development”

05/05/06 Alessandra Casella, Columbia University “A Simple Scheme to Improve the Efficiency of Referenda”

9 2006 Graduate Student Placement Alpna Bhatia instructor, University of Colorado at Denver and Health Sciences Center and at Boulder Vahram Ghushchyan professional research assistant, University of Colorado and Health Sciences Center Bradley Graham assistant professor, Grinnell College, Grinnell, Iowa Denni P. Purbasari assistant professor, Gadjah Mada University, Indonesia Katherine Sauer assistant professor, University of Southern Indiana, Evansville, Indiana Kiyoshi Yonemoto assistant instructor/ researcher, Tohoku University of Colorado at Boulder University, Japan College of Arts & Sciences Department of Economics

Enclosed is my gift of: ___ $1,000 ___ $500 ___ $250 ___ $100 ___ $50 other ______Please use my gift for: Ȟ Department of Economics Faculty Enhancement Fund (0122954) Ȟ Department of Economics (0121028) Name ______My corporate matching gift form is enclosed Address ______I would like to make my gift by credit card: ______Ȟ Visa Ȟ MasterCard Ȟ AmEx Ȟ Discover City State Zip Phone ______Card number Exp date E-mail ______Print name as it appears on card

Signature ______Ȟ This is a new address. Make checks payable to: CU Foundation and mail to: Nicholas Flores, Economics Chair, 256 UCB, University of Colorado at Boulder, Boulder, CO 80309-0256 or to: CU Foundation, 1305 University Avenue, Boulder, CO 80302 Save time! Make your gift online at www.cufund.org. Click “Give Online,” then follow the links to CU-Boulder, Colleges & Schools, Arts & Sciences, and Economics. 686 Thank You! 10 Department of Economics 2005 Graduates

PhD J. Ulyses Balderas Xiaoyang Chen KyooHong Cho Devon Paul Lynch Stephanie Martin Master of Arts Anwar Alazmi Namsuk Choi Megan Harrod Molly Lipscomb Michael Snipes Stephen Billings Seoung Chung James Holladay David Pinto Bridget Strand Said Boakye Khai Dinh Shiyun Jin Amery Pore Tianle Zhang Yen-Heng Chen Bachelor of Arts Matthew Adkins Kellen Friedlander Eric Lee-O’Brien Jonas Nwuke Philip Strong Nathan Adler Aaron Gaby Joshua Lehner summa cum laude Kristin Teague Thomas Allen Charles Garabedian Juan Lema-Heyl Jedediah Ober John Thompson Cindy Anderson Philip Garrison magna cum laude Matthew O’Rourke David S Thomson Nathan Archuleta Thomas George Gustave Levy Kristean Paerels Tim Tressell Erin Arnason Bryant Gewalt Paul Lewer Paul Park Lee K Tsuo Maria Atencio Ricardo Giardiello Jacob Liebeskind Robert Parker Brinley Tuttle Deborah Baker Erin Gilmer James Lindahl Amy Pasquariello Lisa Twitchel summa cum laude with distinction William J Lingar Jason Patel Kevin Unruh Roger Bandelier Mark Glassman Grant Linhares Sonja Perakis Melissa Urbain Eric Baulesh Tristan Godell Gregory Linster Christine Perez Natalie Van Den Heuvel Kristopher Becker Gregory Goldenhersh Michael Worcester Lore Brad A Perkins Heather Van Sant Adam Bell David Goldfarb Jonathan Lundstrom Jonathan Pierotti Matthew Van Voorhees Logan Belz David Grant III Nicholas Luter Xavier Pires Jason Velky Elizabeth Bernhard Philip Greenberg Bao Huy Ly Ethan Plaut Andrew Venker Scott Bernstein Douglas Greenspan Robert Macaria summa cum laude Stefanie Vincent Matthew Bickmore Paul Grigel Kara Mac Donald Andrew Polacek with distinction Brynmar Bland with distinction Suzanne Malcolm magna cum laude Michael Walsh Christopher Blatchley Grant Grigorian Colin Malone with distinction Elizabeth Wanchock Jesse Blum Jean-Marcel Gutierrez Clea Manchester Jonathan Praw Lisa Watkins Daniel Boccia Aaron Hafliger Trey Marinello Elizabeth Rainero Kevin Watt Matthew Bohlmann John Hancock Benjamin Maxon Thomas Rattigan Jeremy Wendt Tahir Bokhari Daniel Harder Emily Mayer John Reardon Reginald Whisenton Ashley Boyd Matthew Harlow Amanda Mc Cartney Nicholas Richardson Jessica Wilson Amanda Brotzman John-Paul Henry summa cum laude Jennifer Roberts John Wilson III Jacob Cabral Jehda Honculada with distinction Jacob Robertson Camille Young Sean Cahill Paul Hoi Ming Hui John Blake McCool Jasmin Rochholz Jeffrey Young Peter Carlton Luke Humecky Michelle McCown Timothy Rochholz Adam Zachary Vincent Catalano Adam Intagliata Michael J McDonnell magna cum laude Mei Zhou Eric Chamberlin Thomas Jepsen Daniel McGarry with distinction Adriaan Zimmerman Chi Myong Chong Nicholas Jesaitis Kevan McLaughlin Jeris Romeo Kristen Zuidema Joseph Cox Chad Johnson Tom McMahon James Rosatelli Jonathan Curry Kristin Johnson Paul McPeake Parker Ross Shaun Davies magna cum laude Thomas Ryan Melchior Eric Roth Christina Davis with distinction Renee Metivier Jeremy Rydberg summa cum laude Christopher Jones Erin Miles Mara Salazar with distinction Scott Kanouse Heidi Miller Kristen Schubert Matthew Debus Andrew Keller Jason Millman Jason Schuneman Sam Denny Paul Kim Ameha Molla Travis Serene Brandon Dill Nathalie Kjellstrom Alexis J Monts David Shanklin Sean Dillon cum laude Tyler Morant with distinction Ronald Dion with distinction Reed Morgan Eric Simonians Barrett Dobos Andrew Klostermann summa cum laude Jock Sivakumar Mario Dominguez summa cum laude with distinction Bryan Smith Nathaniel Edwards Kimberly Koch Luke Mullen Calvin Smith IV Taylor Erdman Katie Kompinski Michael Muniz Matthew Smith Brendon J Ericson George Kordas Jarrod Musick Andrew Squire Ben Feller Nozomu Kuno Akin Mutlu Russell Stanley Beth Felsen Trenton Labore Joseph Neguse David Steed Robert Findlay Rhodri Lane Nathaniel Nieland Christopher Steiner Kristin Fleischer Peter Lawrence Natalie Nilson Jason Stevens Andreja Fornazaric Charles Le bon Christopher Norris Patrick Stone Aaron Fox-Collis Marisa Lechner Elizabeth Notides William Stone, Jr.

11 Let Us Hear from You

Please use the form below to send us news about yourself or update your address. Mail to: Newsletter, Department of Economics, University of Colorado at Boulder, 256 UCB, Boulder, CO 80309-0256 or send an e-mail to [email protected] or annmarie.ladd@ colorado.edu. Name ______

Address ______

E-mail address ______

CU degree(s) and date(s) ______

______

Major professor ______

Degree(s) from other school(s) and date(s) ______

______

Present position, employer, location ______

______

______

Awards, honors, fellowships ______

______

______

Other information, alumni news ______

______

______

______

Nonprofit Org. U.S. Postage Department of Economics PAID 256 UCB Boulder, CO Boulder, CO 80309-0256 Permit No. 257

The University of Colorado is an equal opportunity/ nondiscrimination institution.