BRIGHAM YOUNG UNIVERSITY DEPARTMENT MAGAZINE ISSUE #1 FALL 2012 ECONOMICS

The Mathematics Building a Legacy The Dream Team Google vs. Oracle the story of the founders of go behind the scenes and from the perspective of of Democracy the economics department meet the economics faculty expert witness JR Kearl 4 8 16 20 ;)

you raise my interest “rate thirty basis points without a corresponding drop off in consumer enthusiasm – valentine from an economist”

Chair Editor Graphic Designers Writers Faculty Writers Assistant Editors Eric R. Eide Carrie Scoresby Scott Capener Rebecca Rees J. R. Kearl Danielle Leavitt Bree Crookston Carrie Scoresby Joseph McMurray Paige Montgomery Melanie Tirrell Joseph Price David Spencer Larry Wimmer ECONOMICS ON THE COVER

BRIGHAM YOUNG UNIVERSITY DEPARTMENT MAGAZINE ISSUE #1 mathematics FALL 2012 From the Chair

I hope you democracy 4 enjoy our The Mathematics of Democracy Joseph McMurray discusses the effects of the uninformed alumni voter vs. informed voter in the election process. mathe maticsmagazine. FEATURES OUR INTENT IS TO HIGHLIGHT the activi- ties of our students, alumni, and faculty. We are grateful for the opportunity to work with bright and hard-working students in the classroom, as teach- ing and research assistants, and even 2 8 14 ofdemocracy as coauthors of journal articles. We are pleased to see many of our students The Veggie Building a Optimizing pursue valuable internships, receive job Project Legacy Our Returns offers with a wide range of employers in diverse industries, and gain admission Joseph Price investigates How did the BYU Department Economics students are to first-rate graduate programs. In this approaches schools can use of Economics begin? John making their mark across the issue, you will learn about some of our to encourage children to eat Swenson, Elmer Miller, and A. United States and internation- students and the activities and projects more fruits and vegetables Smith Pond laid the critical ally with their internships, during lunch. groundwork of the economics jobs, and graduate school mathematicsin which they are engaged during their department we know today. placements. time with us. You will also learn about our faculty members’ current research projects, and in particular the ways in which faculty involve students in their research. Some of our faculty members have recently democracypublished in top economics journals such as the Journal of Political Economy, the Review of Economics Studies, the 16 20 23 Review of Economics and Statistics, and the Journal of Econometrics. I be- The Dream Team – Google Welcome to lieve you will also be interested to read Economics Faculty vs. Oracle Boot Camp about several of our faculty members mathematics whose research has been featured in Go behind the scenes to meet Expert witness J.R. Kearl Faculty and students share our faculty. reviews the lawsuit Oracle their experience of participat- prominent news outlets, and who have filed against Google to protect ing in the first ever Macroeco- testified as expert witnesses in high intellectual property and the nomics and Computational profile legal cases and before the U.S. intricacies of patent and copy- Boot Camp. Congress. right laws. On behalf of the BYU Economics De- partment, I extend our best regards and ALSO IN THIS ISSUE democracy hope you enjoy reconnecting with us. 3 Awards 26 New Faculty Sincerely, 22 Alumni Spotlight 27 In the News 24 Student Spotlight 28 Recommended Reads

Eric R. Eide mathematicsDepartment Chair democracy 1 E / FEATURE

Vegetables Most Likely to End Up in the Trash

77% of children are likely to throw their green beans away.

THE BYU VEGGIE PROJECT has been funded that are served end up in the trash. One of uses are a set of specially made veggie coins. by the USDA for the last four years and the project’s studies indicates that wastage Children can receive one coin each day they is directed by BYU economics assistant will be even higher starting in the fall with eat a serving of fruits and vegetables. Each professor, Joe Price. Collaborators on the the implementation of new guidelines that coin is worth a quarter and can be spent at a project include David Just (Cornell), Kevin require that fruits and vegetables be placed school store, book sale, or school event such Volpp (Penn), Jason Riis (Harvard), and on every child’s tray. as a carnival. We work with each school’s George Loewenstein (Carnegie Mellon). One of the major goals of the project is PTA to provide options for the children to The purpose of the project is to examine to use principles from behavioral economics spend their veggie coins, thus providing a various approaches that schools can use to to identify approaches schools can use to great fundraising opportunity for the PTA encourage children to eat more fruits and ensure that more of the fruits and veg- (we write the PTA a check for each coin that vegetables during lunch. More than 100 etables end up in the tummy and fewer in gets redeemed). The length of the rewards BYU economics students have worked as the trash. Many of the approaches involve period is randomly assigned to each school research assistants on the project, running small incremental changes such as increas- which we use to estimate the elasticity different field experiments at elementary ing the number of options provided (each between intervention duration and long-run schools in Utah, conducting the analysis of additional item increases fruit and vegetable behavioral change. different interventions, and helping with consumption by 10%), moving recess before We currently have the capacity to include various other aspects of the project. lunch, or placing the fruits and vegetables elementary schools anywhere in the country. The project provides a novel way to in more convenient locations. Other ap- If you think your local school might be inter- measure food consumption during lunch proaches involve novel interventions such ested in participating, just contact: veggies@ with an Apple mobile app called “vpro- as having a competition during lunch (which byu.edu. In addition, we would welcome ject.” The app allows research assistants to we are conducting with a new company any children of BYU alumni to try out their record the number of servings of each fruit called Nutrislice) or providing children with own interventions to encourage healthy and vegetable item that children eat and a small reward (which doubles the fraction eating at school as a science fair project. throw away. Over the last few years, our of children eating fruits and vegetables and BYU research assistants on the project can researchers have collected more than 70,000 reduces waste by 50%). provide training materials and help in using child-day observations. On average, about The small rewards approach provides the vproject app to collect data and assist one third of children eat at least one serving some particularly interesting insights into with any data analysis. of fruits and vegetables during lunch (with when and where incentives have a positive girls being about 33% higher than boys). impact and how long it takes for a long-run More information about the project at: http:// Sadly, over 40% of the fruits and vegetables habit to form. The rewards that the project byuresearch.org/veggieproject/veggie.html JP

2 Awards

Rulon Pope Steven Waters

RULON D. POPE, professor of eco- ADJUNCT FACULTY, through their nomics, received the 2011-2012 Karl professional experience, bring well- G. Maeser Distinguished Faculty roundedness to students’ education Lecturer Award, which is Brigham and play an important role in as- Young University’s highest faculty sisting the university to achieve the honor. Recipients of this award must aims of a BYU education in the lives demonstrate excellence in research, of students. The Adjunct Faculty teaching, and university citizenship. Excellence Award acknowledges Throughout his career, Professor this role and is awarded to a faculty Pope has been a role model in all member who demonstrates excel- three areas. lence in teaching or other profes- Dr. Pope received his doctorate sional responsibilities in service to from the University of California- the university and students over a Berkeley in 1976. Prior to coming period of at least five years. Dr. Ste- to BYU in 1982, he held positions at ven Waters brings extensive experi- the University of California-Davis ence into his classroom providing an and Texas A&M University. He is a enriching education for his students. fellow of the Agricultural and Ap- For the past ten years, Dr. Waters plied Economics Association and has has taught microeconomics in the served on editorial boards and as Economics Department. In addition associate editor of the association’s to his teaching position at BYU, he is journal, the American Journal of an economic consultant. His experi- Agricultural Economics. Addi- ence includes developing statistical tionally, he has been president of models of damages used in litigation the Western Agricultural Econom- involving environmental contamina- ics Association and has received a tion in North Carolina and more than number of research awards from fourteen years working on matters these two professional associations. such as antitrust, intellectual proper- Dr. Pope is a recipient of the Karl G. ty, breach of contract, employment, Maeser Research and Creative Arts and wage discrimination at LECG Award and holds the Warren and in its Washington, D.C. and Salt Recipients of the Karl Wilson Dusenberry Professorship. Lake City offices and currently at His primary research is in agricul- Charles River Associates. Dr. Waters G. Maeser Distinguished tural economics, econometrics, and has given expert trial and deposi- microeconomic theory. He has a tion testimony in federal and state Faculty Lecturer Award strong interest in reducing poverty district courts and has presented to must demonstrate exellence and malnutrition and improving the the Department of Justice. He also conditions for food security through- consults for The Nature of Strategic in research, teaching, and out the world. Thinking, a strategy consulting firm, In May 2012, Dr. Pope delivered and serves as a member of the board university citizenship. the 2012 Karl G. Maeser Distin- for the Mali Rising Foundation, a guished Faculty Lecture addressing nonprofit organization focused on food production and Engle’s Law, building schools in the West African concluding that Engle’s Law implies nation of Mali. the behavior of the poor will be more sensitive to price changes of food than the behavior of the wealthy.

To listen to his address, visit http://speeches.byu. edu/?act=viewitem&id=2032. RR

3 mathematicse / FEATURE democracy mathe matics ofdemocracy mathematics democracy mathematics democracy mathematics 47 democracyECONOMICS mathematics democracy mathe matics ofdemocracy mathematics democracy mathematics democracy mathematics democracy FALL 2012 85 E / FEATURE The Mathematics of Democracy

AN INTERESTING, IF SOMEWHAT UNCOM- majority will favor whichever policy is actu- might seem that more information is always MON, lens through which to view politics is ally superior. More formally, the probability better, if only slightly. This would indeed be that of mathematics. One of the strongest of a collective mistake approaches zero as the case, except that each vote takes weight arguments ever made in favor of democracy, the number of voters grows large. away from other votes, which may be better for example, was in 1785 by the political Condorcet’s mathematical analysis as- informed. philosopher-mathematician, Nicolas de sumes that voters’ opinions are equally reli- If voters recognize the potential harm of Condorcet. Because different people possess able, but in reality, expertise varies widely an uninformed vote, this could explain why different pieces of information about an is- on any issue, which raises the question of many citizens vote in some races, but skip sue, he reasoned, they predict different out- who should be voting? One conventional others on the same ballot, or vote in general comes from the same policy proposals, and view is that everyone should participate; elections, but not in primaries, where infor- will thus favor different policies, even when in fact, this has a mathematical justifica- mation is more limited. This raises a new they actually share a common goal. Ulti- tion, since in Condorcet’s model, collective question, however, which is who should con- mately, however, if the future were perfectly errors become less likely as the number of tinue voting: if the least informed citizens all known, some of these predictions would voters increases. On the other hand, another abstain, then a moderately informed citizen prove more accurate than others. From a common view is that citizens with only now becomes the least informed voter; present vantage point, then, each voter has limited information should abstain, leaving a should she abstain, as well? some probability of actually favoring an infe- decision to those who know the most about Mathematically, it turns out that for any rior policy. Individually, this probability may the issue. Ultimately, the question must be distribution of expertise, there is a threshold be rather high, but collective decisions draw settled mathematically: assuming that dif- above which citizens should continue voting, information from large numbers of sources, ferent citizens have different probabilities no matter how large the electorate grows. A making mistakes less likely. of correctly identifying good policies, what citizen right at this threshold is less knowl- To clarify Condorcet’s argument, note configuration of voter participation maxi- edgeable than other voters, but nevertheless that an individual who knows nothing can mizes the probability of making the right improves the collective electoral decision by identify the more effective of two policies collective decision? bolstering the number of votes. The formula with 50% probability; if she knows a lot It turns out that, when voters differ in that derives this threshold is of limited about an issue, her odds are higher. For the expertise, it is not optimal for all to vote, practical use, since voter accuracies cannot sake of argument, suppose that a citizen cor- even when each citizen’s private accuracy readily be measured, but simple example rectly identifies the better alternative 51% exceeds 50%. In other words, a citizen with distributions demonstrate that voting may of the time. On any given issue, then, many only limited expertise on an issue can best well be optimal for a sizeable majority of the will erroneously support the inferior policy, serve the electorate by ignoring her own electorate. but (assuming that voters form opinions opinion and abstaining, in deference to The dual message that poorly informed independently, in a statistical sense) a 51% those who know more. Mathematically, it votes reduce the quality of electoral deci-

6 f (q)

f (q) f (q)

56%

59% 52% q q q .5 .711 .5 .641 .503 .51 “Optimal VOTER PARTICIPATION

An individual who knows nothing can choose the better of above q=.711 should vote, while those below the threshold two alternatives with probability q=.5 (e.g. by flipping a do better to abstain. When expertise is less common, so that coin). For an expert on the issue, this probability is higher— the distribution is skewed (e.g. panel 2, and especially panel maybe q=.8. What if decisions are made according to the 3) this threshold may be much lower. It is never optimal for majority opinion of a large group of voters, whose expertise everyone to vote, but the collective decision does benefit from varies (i.e. q values ranging from .5 to 1)? Should everyone moderately informed votes, no matter how many experts vote? Or just those with q close to one? The precise answer there are. depends on the distribution of expertise, but some examples Figures reproduced from: “Aggregating Information by Voting: The are illustrated here. If all values of q between .5 and 1 were Wisdom of the Experts versus the Wisdom of the Masses,” forthcom- equally common (panel 1), for example, those with expertise ing in The Review of Economic Studies (2012).

sions, but that moderately informed votes brace this assumption when they attempt Reported Voting and Registration can improve even the decisions made to persuade and convert one another via even by more expert peers, may leave an debate, endorsements, or policy research: for the United States, 2010 individual feeling conflicted as to whether such efforts are only worthwhile if an Source: U.S. Census Bureau, Current Population Survey, November 2010 she should express her tentative opinions, individual expects others, once convinced, or abstain in deference to those with better to abandon their former policy positions, 20% 40% 60% 80% 100% expertise. Assuming that her peers vote in favor of her own. Some policies also do Both Sexes and abstain optimally, it may be useful receive overwhelming public support. to first predict voter turnout, and then If Condorcet’s basic premise is right, an REPORTED REGISTERED 59.8% participate (or not) accordingly: when half uninformed citizen’s highest contribution the electorate votes, it should be the better- may actually be to abstain from voting, REPORTED VOTING 41.8% informed half; when voter turnout is 75%, trusting her peers to make decisions on Male all but the least-informed quartile should her behalf. At the same time, voters with participate. only limited expertise can rest assured that 57.9% An important caveat of Condorcet’s a single, moderately-informed vote can probability analysis is that disagreements improve upon the decision made by a large 40.9% are actually illusory: if voters envisioned the number of experts. One might say that this feMale same policy outcomes, they would largely is the true essence of democracy. support the same policies. Whether this is 61.5% accurate or not is an open philosophical This article will appear on the Oxford Univer- sity Press blog (blog.oup.com). 42.7% question, but voters seem implicitly to em- JM

7 BUILDING A LEGACY

THE FOUNDERS OF THE ECONOMICS DEPARTMENT

LARRY WIMMER TYSON TAYLOR REBECCA REES MARY HEDENGSEN

8 “To review the achievements of the University since its founding 70 years ago, reads like a fairy tale.” 1

JOHN SWENSON, 1966

FROM AN UNPRETENTIOUS FRONTIER SCHOOL with a rugged and young student body, Brigham Young Academy advanced rapidly and provided a quality education.2 By 1896, twenty-one years after its founding, the Academy formed a Collegiate Department to provide advanced education to its older students, as well as its first courses in economics, listed under Philosophical Studies. The course began 116 continuous years during which economics courses have been offered at this Institution.

IT WOULD BE 30 MORE YEARS, however, textbook indicates the unexpected degree that could be used to understand how “they before an economics department would be to which BYA’s economic education taught satisfy them today (emphasis added).” 6 established, during which time the commit- modern, state-of-the-discipline content, The “German Historical School,” rather than ment and enormous contributions of three from the most widely used introductory text looking for general theories, attempted to scholars—John C. Swenson, Elmer Miller, in America. discover the “unique” manner in which each and A. Smith Pond—made the department Initially taught by a “Mr. Anderson,” “industrial society has passed through cer- possible and created the path by which it the course then moved to the Commercial tain well defined [economic] stages.”7 It was would be recognized as one of the top un- College where it was picked up by Bryant intended as a new, non-Marxian challenge to dergraduate departments. Swenson, Miller, S. Hinckley—Gordon B. Hinckley’s father— the British Classical School of Adam Smith, and Pond played invaluable roles in the who taught at the Academy from 1893 David Ricardo, John Stuart Mill, and others. creation, growth, and support of economic to 1900, but seems to have only taught It is intriguing and somewhat puzzling that education, the Department of Economics, economics during the last three years of his this international pedagogical debate should and Brigham Young University. tenure. As Hinckley took over the course, he so early make its way into the classrooms at changed the name to Descriptive Economics Brigham Young Academy. An Overview of BYA’s First and adopted a new text: Descriptive The economics class continued to Economics: An Introduction to Economic change hands as Hinckley left and the class Economics Courses Science written by Myron T. Bly. was passed to Robert E. Allen who taught Bly declared his text to be a “wide for two years; consequently, economics SURPRISINGLY MODERN FOR ITS TIME, departure from the ordinary plan of most el- needed a new mentor. That person, John C. the first course,Political Economics, was ementary works.” 5 His intention was not to Swenson, would influence the future of the described as “Elementary [economics] as 3 engage in an “abstract discussion of wealth discipline at Brigham Young more than any found in [Francis A.] Walker’s Elements.” or value,” but to make use of the new “His- other person. A professor at Yale and MIT, as well as one torical Approach” that had recently been im- A promising young student, John Swen- of the most prominent American economists ported from the German School. Examining son enrolled in the Provo Academy at age of his day, Walker authored many books in both these texts (Walker and Bly), Bly’s is a fourteen and graduated after only two years. economics that “excelled more in common 4 radical departure from Walker’s discussion Five years later, after teaching at various sense than in theoretical subtlety.” He of wages, rents, and money. Bly describes stake academies in Panguitch and Fillmore, continues to be honored today for his role as his book as addressing “the manner in which Swenson enrolled at Stanford University the founder and first president of the Ameri- men obtained a living and satisfied their as an English major. At Stanford, he met can Economic Association. The use of this material wants in all the past” and how sociologist David Starr Jordan and econo-

9 E / BUILDING A LEGACY

This designation of "university" was more a declaration of hope and optimism than a validation of status. The plan was to slowly incorporate more collegiate level courses that would eventually change the institution itself.

mist H.H. Powers. Due to their influence, he changed his major from English to sociology, Is the Hat too Big for the Head? A which included economics. With his bachelor Change in Name (Only?) of arts degree, young Swenson returned to Provo in 1898, where the academy hired THE YEAR FOLLOWING the transfer of eco- him as an assistant professor of English and nomics into the new department, the Board history, director of athletics, and chair- of Trustees agreed to a proposal to change man of the Committee on Entertainment the name from Brigham Young Academy to and Student Dances. He also directed the Brigham Young University. This designa- Polysophical Society and was a member of tion of “university” was more a declaration the somewhat radical Ruskin Club. His com- of hope and optimism than a validation of pensation for accepting these assignments status. The plan was to slowly incorporate was supposed to be one thousand dollars per more collegiate level courses that would year, but “finances of the school were in bad eventually change the institution itself. shape and [he] was only paid nine hundred Anthon H. Lund of the First Presidency and dollars.” 8 an opponent of the change wrote in his di- Swenson and the economics course ary, "I hope their head will grow big enough were transferred to the new Department of for their hat.” By October 23, 1903, the First History and Civics and, by 1902, he taught Presidency had approved the new title of English, theology, history, and economics the school, and Brigham Young University courses. He expanded the single economics celebrated its first Founders’ Day. course to a full year course and introduced During this period, economics was in its a new pedagogical approach and a new own formative curriculum period. Two years text. The text, by Charles Jesse Bullock, after being placed in the Department of His- Ph.D., was entitled An Introduction to tory and Civics, the department changed to the Study of Economics, and, unlike the the Department of History and Economics in (FROM TOP TO BOTTOM) Bly text, it sought to familiarize students 1905-1906 (the first year in which “econom- John C. Swenson, Elmer with the modern “marginalist revolution” ics” appeared in the title of any depart- Miller, and A. Smith Pond. of Alfred Marshall. 9 At the time, Marshall’s ment on campus); four years later in 1909, Together, their dedicated “economics” disappeared from the title and book, Principles of Economics, was barely service totaled over 100 a decade old, and much of the econom- the courses were included in the Depart- years between 1898 and ics profession remained embroiled in the ment of History and Social Studies; another ongoing debate between the earlier classical two years later in 1911-1912, “economics” 1959. and the more recent historical schools of reappeared as the Department of Econom- economic thought. Again, it was remarkable ics, Sociology, and Commerce. Photos courtesy of L. Tom Several of these changes reflected the that students at a small rural school should Perry Special Collections, be studying from a text emphasizing the education and interests of John Swenson. By Harold B. Lee Library, relatively new neoclassical tools of demand, 1911, the number of economics courses in- supply, elasticity, and theory of household creased from the initial one to a total of ten, Brigham Young University, consumption and firm production. eight of which Swenson taught. This heavy Provo, Utah. teaching load was all the more impressive,

10 In the early 20th century, America experienced its first home-grown school of economic thought, which became known as the Institutional School...Institutionalists engaged in extensive study of particular institutions such as banking, trade unions, corporations, transportation, and government.

or perhaps oppressive, considering the wide departments, other university and civic became known as the Institutional School. scope of courses. The academic catalogue responsibilities, and his shifting emphasis to This new institutional approach emphasized records the ten economics courses: sociology, Swenson sought additional help, the importance of economic “rules and insti- 1. General Principles of Economics particularly in economics. In 1923, BYU tutions” as the principle determinant of eco- 2. Money and Banking hired Elmer Miller, who devoted his entire nomic patterns and progress, and instead of 3. Corporate Industry career to economics covering the period general theories found in the classical school 4. Labor Principles and Legislation from 1923 to 1956. Swenson, however, or detailed histories of specific national 5. Economic History of the United States continued to teach courses in economics economies in the German historical school, 6. Ocean and Railway Transportation as well as sociology until 1930 after which Institutionalists engaged in extensive study 7. Public Finance time he was primarily involved in univer- of particular institutions such as banking, 8. Accounting sity administration and teaching sociology. trade unions, corporations, transportation, 9. Social Economics Swenson retired in 1942, but continued to and government. 10. Social Economics—continued teach sociology until his death in 1953. Laurence Leamer, one of the found- ers of the Institutional School and chair of The Formation of the Department A New School of Thought, 1923- economics at the University of Chicago, had of Economics, 1921 1956 declared that “economics was at last to be made practical,” that the abstract classical SWENSON’S substantial responsibilities did PRIOR TO HIS EMPLOYMENT at BYU, Elmer views of economics were to be “replaced by not end. In 1921, when BYU formed its first Miller served as superintendent of the Al- a concrete description of real business in- Department of Economics, Swenson was pine School District. After teaching at BYU stitutions [...] distinguished by its emphasis appointed as its first chairman, a position he for one year (1908-1909), he left to study upon a non-theoretical and often non-histor- held until 1935—a total of fourteen years.10 at Stanford where he received his bach- ical description of contemporary economic During a number of these years, Swen- elor’s degree in 1914. Besides his studies at problems and institutions.” 13 Elmer Miller son was also acting dean of the College of Stanford, Miller pursued graduate work at likely studied under Leamer while at the Education, a member of the State Board of the University of Chicago from 1914-1916 University of Chicago and incorporated this Education (1917-l942), and chair of the new and 1919, later studied at the University new “pragmatic” or “institutional” approach Sociology Department. He was also instru- of California at Berkeley in 1918 and 1921, into the courses he taught. Undoubtedly, mental in creating the West’s first lyceum or and again at Stanford from 1929-1930. As he also studied under neoclassical schol- forum program at BYU. 11 Swenson shifted his emphasis to sociology, ars because one of his courses professed During the 1920-1921 school year, Sw- Miller became responsible for teaching the to instruct students in “advanced work in enson took a leave of absence to receive his majority of the fifteen courses listed under economic theory with application to present master’s degree in sociology from Columbia economics as early as 1924. Using his day economic problems.” 14 Miller’s work University. In addition to his formative role extensive education, he played a critical role bridged the gap between the neoclassi- in developing BYU’s Department of Econom- in developing economics into a professional cal, theoretical approach and the newer ics, Swenson utilized his additional educa- specialization.12 Institutional approach for economic courses tion and became known as the father of the Further, Miller’s courses reflected a at Brigham Young University. Once again, modern Department of Sociology, in which change taking place in economic pedagogy at a very early date, economics at BYU was he also served as chair from its founding in at the national level. In the early 20th cen- engaged in a national pedagogical debate 1923 to 1944. tury, America experienced its first home- regarding the most effective method of Given his divided time among the two grown school of economic thought which understanding and teaching economics.

11 E / BUILDING A LEGACY

Further, with Swenson’s help, Miller of the American Economic Association) torship of Albert Gailord Hart of Columbia organized the curriculum into a lower divi- and William Jaffe (translator and popular- University. As Hart noted in his introduc- sion, an upper division, and three graduate izer of Leon Walras). Pond became the first tion, “the standard of the book is to bring courses in “Advanced Economics.” One of member of the Department of Economics to the student to a real working command of a Miller’s courses stipulated that only “those receive a doctorate degree, having received considerable amount of economics, rather students who had had sufficient preparation his Ph.D. from Northwestern in 1942. than to bring a vast amount of economics to and who are desirous of gaining a greater Returning to BYU with Ph.D. in hand, the level of a parlor accomplishment.” 22 familiarity with some particular phase of Pond quickly became a valuable resource, Pond’s textbook went through several economics” need register.15 These advanced teaching lower and upper-division courses. editions and received considerable support courses were open by invitation only to The latter included the History of Econom- from the education community. His review- seniors and graduate students. ic Thought, Advanced Economics, and ers included such notable economists as Ar- Miller continued his professional devel- Government Finance and Taxation, as nold Sametz of Princeton University, George opment as well to keep up with the latest well as other courses in economic theory.18 H. Hildebrand of the University of California, economic training. During the 1942-1943 In addition to these general economic and Lawrence Leamer of the University of school year he took a leave of absence to courses, Pond chaired and taught in the new Chicago.23 James F. Becker of New York study at Harvard University.16 Department of Agricultural Economics.19 University called Pond’s text “a superior By the year preceding Miller’s leave, Considering he wrote his Ph.D. dissertation volume” 24 – perhaps surprising comments 1941-1942, the economics curriculum had on Urban Special Assessments in Down from the future author of Marxist Political grown to include twenty-six courses, twelve State Illinois, 1925-1937, the number and Economics: An Outline.” 25 of them upper division courses and eleven breadth of courses Pond taught demonstrate In addition to his teaching and publica- graduate courses including a master’s de- the degree of versatility required of BYU tion record, Pond held many important gree and thesis.17 These twenty-six courses faculty as late as 1950.20 positions in Brigham Young University’s and their multiple sections were taught by In 1956, an alternative to the encyclo- administration. He served on the “Superior a mere mere two full-time faculty (Pond pedic text of Paul Samuelson was born as Student Program” committee (that would and Miller) and four part-time faculty in Pond turned his expertise and experience to later become the Honors Program), the economics. improve students’ introduction to econom- “Committee on Forensic Council,” as well ics. By 1953, Pond was sending queries to as serving as president and faculty leader Economics for the Common Man, academic publishers about writing a differ- of the BYU chapter of Phi Kappa Phi. He 1937-1959 ent kind of economics textbook that would had incredible influence as the Chairman of better introduce students who were fulfilling the Curriculum Committee during Presi- IN RESPONSE TO GROWING ENROLLMENT general education requirements in the dent Earnest Wilkinson's overhaul of BYU’s and curriculum, A. Smith Pond was hired discipline of economics. In a letter to one of general education curriculum. Later, Pond in 1937, completing the triumvirate of the his old mentors, James Washington Bell at served as both dean of the College of Hu- three principle founders of the modern Northwestern University, Pond wrote, “the manities and Social Sciences and the dean of Department of Economics at Brigham Young traditional textbook for the introductory the Graduate School.26 University. Along with Swenson and Miller, course is not very well adapted to the needs In addition to his many responsibilities, Pond devoted almost his entire career to of the student who does not go beyond Pond was engaged in advancing BYU’s role building the Economics Department. While that first course,” and thus, rather than an in the larger academic community. He was influenced by the historical and institutional introductory text for economics majors, he Chairman of the Resolutions Committee of approaches to economic education, Pond wanted to write a textbook emphasizing the Western Economics Association and was a force for returning BYU to the fold of the fact “that the overwhelming majority of wrote a significant report of BYU’s economic modern economics—a return to the mar- students who come under our leadership education projects for the Joint Economic ginalist approach of neoclassical economic will not be professional economists, but they Education Council. He also worked in edu- thought. Pond was hired during the depths will be citizens, voters, breadwinners, and cational organizations such as the Associa- of the Great Depression, after completing in some cases public servants.” 21 Despite tion for Higher Education and the Utah undergraduate work at the University of publishers’ initial reluctance, Harcourt and Conference for Higher Education. Pond Utah (1926) and several years of graduate Brace eventually contracted to publish his frequently met with administrators of local work at Northwestern University under proposed text. In 1956, Pond published public schools across Utah, encouraging the Richard T. Ely (who was later the president Essential Economics under the general edi- study of economics in secondary schools.

12 During the 2011–2012 school year, 29 faculty taught approximately 5,000 students in 96 sections involving 37 different courses.

Post-World War II the first day...Now we have 4,500. At the programs, only slightly behind Harvard, Economics Education beginning there were only 4 teachers. Now Stanford, Berkeley, MIT, and Cornell; and this faculty approaches 200. During the first above Princeton, University of Chicago, Uni- decade the institution was housed in the up- versity of Michigan, Yale, and University of AFTER THE END OF WWII and within a short per story of a warehouse. Now, the buildings Texas – no other university between Illinois, six year period, these three pioneer scholars on this hill are so numerous that many of us Texas, and California makes the list of the passed away. Devoted and visionary profes- find it difficult to find our way around. top 27.29 Continuing in the progress Swen- sors, Swenson, Miller, and Pond transformed The curriculum offerings have so son witnessed, the Department of Econom- economics at BYU into a modern depart- broadened and deepened that the University ics is currently a complex array of faculty, ment. They pioneered curricula and depart- has equal status with many of the leading students, and courses. During the 2011-2012 ment programs while teaching horrendous universities of the land, but with all this school year, 29 faculty members taught numbers of courses, laden with multiple change there has remained one constant approximately 5,000 students in 96 sections administrative responsibilities. They stood factor and that is the ethical and religious involving 37 different courses. Roughly 150 out from the crowd in their unwavering ideas it began. The future of the University is students graduated from the department, commitment to Brigham Young University, assured if it continues to maintain freedom of and many continue on for further gradu- to their Church, and to intellectual integrity teaching. The courage to accept truth from ate work in business, law, public policy, and academic freedom. whatever course it may come and finally to medicine, as well as economics; others enter Late in his life, John Swenson reflected hold to the standards of living which have directly into the job market with a panoply on the accomplishments of the university: characterized it from the beginning." 28 of offers from major financial and industrial firms. "To review the achievements of the Uni- From 1997-2010 the Department of Eco- versity since its founding 70 years ago, reads nomics at BYU ranked 6th in the nation in its like a fairy tale. It begins with 29 students placement of students in economics Ph.D.

REFERENCES

1 Swenson, J. C. (1956). Unpublished 10 Sixty years later (1980) the Department 14 Brigham Young University. BYU Aca- 23 Pond, A. S. Personal Papers. Provo: Autobiography of John Canute of Economics would be transferred demic Catalog 1924-1925. 78. Provo: Harold B. Lee Library Special Collec- Swenson (February 4, 1869-August 30, from the Commerce College, by then Harold B. Lee Library. tions. 1953). 50. Harold B. Lee Library Special the new School of Management, to the Collections. College of Family, Home, and Social 15 Ibid., 78. 24 Becker, J. F. (1956). Review of Essential Sciences; with a group of Managerial Economics by A. Smith Pond. American 2 Ibid., 1. Economists remaining within the Busi- 16 Pond, A. S. Personal Papers. Provo: Economic Review, 46(5), 986. ness School. Harold B. Lee Library Special Collec- 3 Brigham Young University. BYU tions. 25 Ibid., 987. Academic Catalog 1900-1901. Provo: 11 Swenson, J. C. Unpublished Personal Harold B. Lee Library. Papers. 31. Harold B. Lee Library Spe- 17 A more detailed article of the depart- 26 Pond, A. S. Personal Papers. Provo: cial Collections. Among the notable ment’s history can be found on file in Harold B. Lee Library Special Collec- 4 Spiegel, H. W. (1971). The Growth of speakers making their way to this the Department of Economics at BYU. tions. Economic Thought. 617-618. Engle- remote campus, were such national wood Cliffs, NJ: Prentice-Hall. figures as Jacob Riis, Williams Jennings 18 Brigham Young University. BYU 27 Pond, A. S. Personal Papers. Provo: Bryant, and Helen Keller. Education Academic Catalog 1950-1951. Provo: Harold B. Lee Library Special Collec- 5 Bly, M. T. (1898). Descriptive Economics: reformer John Dewey made multiple Harold B. Lee Library. tions. An Introduction to Economic Science. trips to BYU to meet with students and 214. Chicago: General, 214. administrators. Swenson also served as 19 Brigham Young University. BYU Course 28 Swenson, J. C. (1956). Unpublished a representative on the State Board of Catalog 1953-1954. Provo: Harold B. Autobiography of John Canute 6 Ibid., 12. Education for Utah from 1926 to 1936. Lee Library. Swenson (February 4, 1869-August 30, He was among those who led the push 1953). 50. Harold B. Lee Library Special 7 Ibid., 12. for the formation of the Springville Mu- 20 Northwestern University. Degrees Collections. seum of Art and was one of its featured Granted 1941-1942. Chicago: North- 8 Swenson, J. C. (1956). Unpublished speakers at its opening. western University Special Collections 29 Fiegener, M. (2012, July 7). Survey of Autobiography of John Canute and Archives. Earned Doctorates. (L. T. Wimmer, Swenson (February 4, 1869-August 30, 12 Brigham Young University. BYU Aca- Interviewer) 1953). 50. Harold B. Lee Library Special demic Catalog 1924-1925. 75-78. Provo: 21 Pond, A. S. (1953, June 18). Per- Collections. Harold B. Lee Library. sonal Letter to James Washington Bell. Provo, UT: Harold B. Lee Library Special 9 Bullock, C. J. (1897). Introduction to the 13 Leamer, L. E. (1950). A Brief History Collections. Study of Economics. New York: Siler, of Economics in General Education. Burdett and Company. American Economic Review, 25. 22 Pond, A. S. Personal Papers. Provo: Harold B. Lee Library Special Collec- tions.

13 E

OPTIMIZING their returns

Economics students are making their mark throughout the United States and various parts of the world with their internships, jobs, and graduate school placements.

ARIZONA CALIFORNIA DENVER LAS VEGAS NEW YORK internships internships jobs jobs internships Office of the Governor Cornerstone Research Mitt Romney Presidential Marcus & Millichap Credit Suisse Investment Bank jobs jobs Campaign Ernst & Young iQor US Airways Anglepoint MARYLAND Towers Watson Cornerstone Research FLORIDA Duff & Phelps jobs jobs internships ARKANSAS graduate schools Greysteel Company Ernst & Young Citibank jobs Stanford ph.d. economics graduate schools jobs Walmart Stanford law MINNESOTA Cornell University economics Loma Linda University Teach For America doctor of dental surgery jobs BOSTON IBM NORTH CAROLINA jobs ILLINOIS Property Solutions graduate schools CONNECTICUT Harvard University jobs graduate schools Duke University ph.d. economics Massachusetts General Hospital graduate school Sears Holdings University of Minnesota masters of Duke University law Vecna Technologies Quinnipiac University law graduate schools healthcare administration Yale University ph.d. economics graduate schools Chicago ph.d. economics Yale University masters of religion PENNSYLVANIA Boston University economics Chicago law in second temple judaism NEBRASKA Harvard University law Midwestern University doctor of graduate schools Tufts Medical (Massachusetts osteopathic medicine graduate schools Carnegie Mellon ph.d. economics Institute of Technology) DELAWARE Creighton University Medical jobs INDIANA Teach For America graduate schools graduate schools Notre Dame University law Wilmington masters of education

14 Heritage Law Office graduate schools TEXAS Intermountain Healthcare BYU law WASHINGTON DC INTERNATIONAL internships Internet Safety Project BYU mpa internships internships Kickstart Seed Fund Bain & Co. KLAS Research American Action Forum Jordan Investment Board jordan Baylor College of Medicine Morgan Stanley Smith Barney VIRGINIA Economic Consulting Knight Frank Strategy moscow Pricewaterhouse Coopers General Dynamics LDS Employment Services Northwestern Mutual internships jobs Office of Speaker Rebecca Lockhart Marcus & Millichap rio de janeiro IBM Office of Senator Harry Reid Ministry of Social Development Bain & Co. Rapid Penetration of Markets LLC Office of Senator John Barrasso jordan Fidelity Investments Scalar Partners graduate schools Soltis Office of Senator Mike Lee PEAT buenos aires McKinsey & Co. University of Virginia law Sorenson Capital Office of Senator Orrin Hatch Pricewaterhouse Coopers sydney St. Vincent Health System US Treasury Department Quanta Computer taiwan TENNESSEE Sumsion Business Law WASHINGTON jobs jobs Utah Valley Regional graduate schools graduate schools Bates White Temasek Holdings singapore Medical Center Cornerstone Research Vanderbilt University MAcc Viral Marketing & PR Washington State University ph.d. Edgeworth Economics LLC jobs economics Truman-Albright Fellowship UTAH Accretive Health Adobe internships Allegis Financial Partners WISCONSIN BYU Management Society American Preparatory School jobs Beneficial Life Ancestry.com Epic Systems Cicero Group BYU Office of IT Dexter & Dexter Charles River Associates Enterprise Rent-a-Car Fidelity Investments Ernst & Young Vivint Goldman Sachs Xactware

15 E / FACULTY & STAFF THE DREAM TEAM

The following is a list of the economic department’s professors and their areas of expertise. For more information about the professors, their publications, educational background, and contact information, see the economics department website.

Olga Bogach, Ph.D. Scott C. Bradford, Ph.D. Richard J. Butler, Ph.D. James H. Cardon, Ph.D. Scott S. Condie, Ph.D. Visiting Assistant Associate Professor Professor Associate Professor Assistant Professor Professor

EDUCATION EDUCATION EDUCATION EDUCATION EDUCATION University of Hawaii, 2012 Harvard University, 1998 University of Chicago, Princeton University, 1996 Cornell University, 2007 1979 EXPERTISE RECENTLY PUBLISHED RECENTLY PUBLISHED RECENTLY PUBLISHED International economics "Potential Economic RECENTLY PUBLISHED “Flexible Spending “Ambiguity and Rational and experimental Reforms in North Korea: “Economics of Accounts and Adverse Expectations Equilibria” economics A Dynamic General Occupational Safety Selection.” Journal of (with J. Ganguli). Review Equilibrium Model" and Health” (with J. Risk and Insurance, of Economic Studies, HOBBIES/INTERESTS (with K. L. Phillips & Ruser). Foundations 2010. 2011. Hiking, tennis, volleyball, D. Kim). Journal of and Trends® in and traveling Economic Policy Reform, Microeconomics, 2010. EXPERTISE EXPERTISE 2011. Health economics and Economic theory and EXPERTISE industrial organization financial economics EXPERTISE Worker’s compensation Migration, international and disability HOBBIES/INTERESTS HOBBIES/INTERESTS trade, political economy, Hiking and astronomy Swimming, biking, and and the Japanese HOBBIES/INTERESTS running economy Tai Chi and backpacking

HOBBIES/INTERESTS Family, church, museums, nature (terrestrial and celestial), performing arts, reading, sightseeing, and sports

16 Eric R. Eide, Ph.D. Richard W. Evans, Ph.D. Brigham Frandsen, David R. Hansen, Ph.D. Heather F. Howard, James R. Kearl, Ph.D. Department Chair, Assistant Professor Ph.D. Visiting Assistant Ph.D. Professor Professor Assistant Professor Professor Adjunct Faculty

EDUCATION EDUCATION EDUCATION EDUCATION EDUCATION EDUCATION University of California, University of Texas at Massachusetts Institute of Stanford University, 2011 Cornell University, 2008 Massachusetts Institute of Santa Barbara, 1993 Austin, 2008 Technology, 2010 Technology, 1975 EXPERTISE EXPERTISE RECENTLY PUBLISHED RECENTLY PUBLISHED RECENTLY PUBLISHED Development Economic history RECENTLY PUBLISHED “Sleep and Student “Is Openness Inflationary? “Quantile Treatment economics, economics of “The Economics Achievement” (with M. Policy Commitment Effects in the Regression education, and applied HOBBIES/INTERESTS and Curious Law of H. Showalter). Eastern and Imperfect Discontinuity Design" microeconomics Gardening Prejudgment Interest” Economic Journal, Competition," Journal (with M. Froelich & (with M. Glick & C. Forthcoming. of Macroeconomics, B. Melly). Journal of HOBBIES/INTERESTS Sinclair). University Forthcoming. Econometrics, 2012. Reading (history, science of Utah Law Review, EXPERTISE fiction, and classics), Forthcoming. Economics of education, EXPERTISE EXPERTISE ultimate frisbee, and health economics, and International Econometrics and labor running EXPERTISE labor economics macroeconomics, economics Law & economics, monetary economics, industrial organization and HOBBIES/INTERESTS public economics and HOBBIES/INTERESTS applied microeconomics Trail running, swimming, computational economics Cello, piano, mountain and cycling biking, and coaching his HOBBIES/INTERESTS HOBBIES/INTERESTS kids soccer games Cycling, travel, collecting Snowboarding, golf, tribal and Middle Eastern tennis, and rock climbing and Asian art and artifacts (anything outdoors)

Val E. Lambson, Ph.D. Lars J. Lefgren, Ph.D. James B. McDonald, Joseph C. McMurray, Kerk L. Phillips, Ph.D. Brennan C. Platt, Ph.D. Professor Associate Professor Ph.D. Ph.D. Associate Professor Assistant Professor Professor Assistant Professor

EDUCATION EDUCATION EDUCATION EDUCATION EDUCATION EDUCATION University of Rochester, University of Chicago, Purdue University, 1970 University of Rochester, University of Rochester, University of Minnesota, 1983 2001 2010 1991 2006 RECENTLY PUBLISHED RECENTLY PUBLISHED RECENTLY PUBLISHED “Instrumental Variables RECENTLY PUBLISHED RECENTLY PUBLISHED RECENTLY PUBLISHED ”Sunk Costs, Depreciation, “Rich Dad, Smart Estimation with Flexible “Aggregating Information “What is the Shape of “Running Out of Time: and Industry Dynamics” Dad: Decomposing Distributions” (with C. by Voting: The Wisdom Real Exchange Rate Limited Unemployment (with A. Gschwandnter). the Intergenerational Hansen & W. Newey). of the Experts versus the Nonlinearity?” (with Benefits and Reservation Review of Economics Transmission of Income” Journal of Economics Wisdom of the Masses.” S. Norman). Applied Wages” (with S. N. Akin). and Statistics, (with M. J. Lindquist & and Business Statistics, Review of Economic Financial Economics, Review of Economic Forthcoming. D. Sims). Journal of 2010. Studies, Forthcoming. Forthcoming. Dynamics, 2012. Political Economy, 2012. EXPERTISE EXPERTISE EXPERTISE EXPERTISE EXPERTISE Economic theory, game EXPERTISE Econometrics and Political economics and Macroeconomics, Search theory, auction theory, and industry Labor economics and quantitative economics microeconomic theory international economics, theory, mechanism design, dynamics empirical economics and economic growth and game theory HOBBIES/INTERESTS HOBBIES/INTERESTS HOBBIES/INTERESTS HOBBIES/INTERESTS Family (including Playing the organ and HOBBIES/INTERESTS HOBBIES/INTERESTS Chess and Hebrew Running, hiking, biking, grandchildren), attending theatrical Hiking and Native Movies, golf, wood and reading church, audible books, performances American rock art working, sailing, and travel, research, and Legos with his boys various outdoor activities

17 C. Arden Pope, III, Ph.D. Jaren C. Pope, Ph.D. Rulon D. Pope, Ph.D. Joseph P. Price, Ph.D. Michael R. Ransom, Mark H. Showalter, Professor Assistant Professor Professor Assistant Professor Ph.D. Ph.D. Professor Professor

EDUCATION EDUCATION EDUCATION EDUCATION EDUCATION EDUCATION Iowa State University, North Carolina State University of California, Cornell University, 2007 Princeton University, 1983 Massachusetts Institute of 1981 University, 2006 Berkeley, 1976 Technology, 1991 RECENTLY PUBLISHED RECENTLY PUBLISHED RECENTLY PUBLISHED RECENTLY PUBLISHED RECENTLY PUBLISHED “Changing the Price “Pension Plan RECENTLY PUBLISHED “Lung Cancer and “A Novel Approach to “Risk Response in of Marriage” (with K. Characteristics and “Estimating the Cardiovascular Disease Identifying Hedonic Agriculture.” (with J. Buckles & M. Guldi). Framing Effects in Relationship Between Mortality Associated with Demand Parameters.” T. LeFrance & J. Tack). Journal of Human Employee Savings Health and Education: Ambient Air Pollution Economics Letters, 2012. Agricultural and Resources, 2011. Behavior” (with D. What Do We Know and and Cigarette Smoke: Biofuels Policy in U.S. E. Card). Review What Do We Need to Shape of the Exposure- EXPERTISE Agriculture, 2012. EXPERTISE of Economics and Know?” (with E.R. Eide). Response Relationships” Environmental economics Labor economics, family Statistics, 2011. Economics of Education (with R.T. Burnett, M.C. and urban economics EXPERTISE economics, and health Review, 2011. Turner, A. Cohen, D. Agricultural economics economics EXPERTISE Krewski, M. Jerrett, S.M. HOBBIES/INTERESTS and microeconomic theory Labor Economics, applied EXPERTISE Gapster, & M.J. Thun). Spending time with my HOBBIES/INTERESTS econometrics, and urban Health economics and Environmental Health wife and 3 daughters, HOBBIES/INTERESTS Basketball, hiking, and economics economics of education Perspectives, 2011. playing basketball and Strange motorcycles and reading squash, and eating nachos cars, fishing, and reading HOBBIES/INTERESTS HOBBIES/INTERESTS EXPERTISE Fly fishing and family Spending time with family, Environmental economics history hiking, and reading and environmental epidemiology

HOBBIES/INTERESTS Family, backpacking, mountain-biking, and research

S David P. Sims, Ph.D. David E. Spencer, Ph.D. Steven Waters, Ph.D. Carrie J. Scoresby Associate Professor Professor Adjunct Faculty MPA Candidate, T Department Administrator

EDUCATION EDUCATION EDUCATION Massachusetts Institute of Texas A&M University, University of California, A Technology, 2004 1974 San Diego, 1993 EDUCATION Brigham Young University, RECENTLY PUBLISHED RECENTLY PUBLISHED EXPERTISE F B.S., 2007 “Rich Dad, Smart “Bootstrapping Structural Antitrust, intellectual Dad: Decomposing VARS: Avoiding a property, environmental HOBBIES/INTERESTS the Intergenerational Potential Bias in economics, econometrics, Volleyball, biking, the Transmission of Income” Confidence Intervals and applied F outdoors, musicals, and (with M. J. Lindquist and for Impulse Response microeconomics BYU sports L. J. Lefgren). Journal of Functions” (with K. L. Political Economy, 2012. Phillips). Journal of HOBBIES/INTERESTS Macroeconomics, 2011. Drum circles, cycling, road EXPERTISE trips, and reading Labor economics, EXPERTISE economics of education, Macroeconomics, and public finance monetary economics, and econometrics HOBBIES/INTERESTS Soccer, baseball, history, HOBBIES/INTERESTS and old movies Opera and hiking

18 E / FEATURE

Visiting Scholars + Career Series

To help students better understand how to apply their economics degree, the department offers a Visiting Scholar Series and a Career Series.

IN 1972, THE DEPARTMENT began hosting the scholar to further discuss their research an economics degree. Alumni are invited to visiting scholars from various universities and discover possible graduate school op- discuss their career path and, specifically, and organizations across the country to portunities. The visiting scholars also meet how an economics degree assisted them in visit campus and present their research to one-on-one with faculty to further discuss their career. A question and answer period is students and faculty. This past year, schol- research, collaborate, and gain expert advice provided for students to inquire about such ars came from Stanford, Harvard, Yahoo! on problems they are researching. Through things as the alumnus’s field of work, the ed- Research, MIT, IMF, Duke, RAND Institute the visiting scholar program students and ucational steps they made to get where they for Civil Justice, Citigroup, University of Ala- faculty alike have the opportunity to experi- are, or other possible advice the alumnus bama, and University of California-Berkley. ence new ideas. may have. Alumni from various industries These scholars participate in a student pre- In Fall 2010, with the support of alumni, including consulting, finance, law, medicine, sentation and faculty lecture. Students are the department began the Career Series to real estate, development, and the public sec- given the opportunity to have breakfast with help students explore possible careers with tor have participated in past career series. CS

19 E / FEATURE

VS

In May of this year, two powerful and well- UTILIZING A RARELY USED PROVISION of the a “Rule 706 expert” by Judge Alsup in late known companies—Google and Oracle—met Federal Rules of Civil Procedure (Section August. In an unusual twist, Professor Kearl in court to determine whether or not Google 706), federal court judge William Alsup of was appointed to be an independent testify- the Northern District of California appointed ing expert and not just a consultant to the had infringed upon their rightful use of Oracle’s Professor Kearl as the court’s “706 expert” court. His initial assignment was to prepare Java programming language in the creation of in an important lawsuit brought against testimony critiquing the work of the experts their Android phone. Oracle filed the law- Google by Oracle. Oracle, which purchased retained by Oracle and Google; later his as- suit against Google in August 2010, claiming Sun’s Java-related intellectual property, signment was expanded and he was directed sued Google in August 2010 alleging that to prepare testimony critiquing the parties’ Google crossed the line of the legal limit of Google’s Android operating system for smart experts and also to provide an independent use for their programming platform without phones and other mobile devices infringed estimate of damages for the in-suit patents a license, giving Oracle rights to part of the Oracle-owned Java patents and copy- and copyrights. Since he was a court- proceeds of the incredibly popular smartphone. rights. Both Oracle and Google retained appointed expert and not retained by the The lawsuit went to courts in May of this economists to estimate damages. Oracle’s parties, Judge Alsup appointed John Cooper expert filed his initial report in May 2011; of Farella Braun and Martel, a San Francisco year. Both companies hired expert analysts to Google’s experts filed preliminary responses law firm, to be Professor Kearl’s attorney. investigate the situation and configure any cost in June 2011. Following this initial duel, In preparation for his testimony, Profes- for such an infringement of copyright laws. Judge Alsup, frustrated with the work of the sor Kearl was directed to prepare an expert With both sides presenting equally creditable experts on both sides, directed Oracle and report and to sit for separate depositions information, Judge William Alsup called for Google to find a neutral expert who would by both parties. In another unusual move, work for the court. More or less out of the Judge Alsup ordered the parties to provide a third, unbiased expert that would remain blue, Professor Kearl was contacted by the him access to any witness on an “off the unconnected with either party. For this neutral parties in early August 2011, interviewed by record” basis, meaning Professor Kearl’s witness he hired BYU’s professor Jim Kearl. Judge Alsup later that month, and appointed interviews of these witnesses were not

20 VS

subject to discovery. He was also given the of Oracle’s patents. Judge Alsup then ruled and copyright laws as they have come to be privilege of questioning the parties’ experts that, as a matter of law, the computer code applied in a high-tech setting. and other witnesses in depositions and cross that Oracle claimed was protected by copy- Beyond the legal and device-based tech- examining the parties’ experts and damages- right, was not copyrightable. As a conse- nical issues, however, the issues associated related witnesses at trial. Had there been a quence, there was no damages phase to the with determining damages if infringement damages phase of the trial, Professor Kearl trial, Professor Kearl did not testify, and the is found to have occurred are complex and would have been the last witness. He would matter is now headed toward the appellate have become central in legal and public have put forward his opinions and bases in courts for review. policy debates about incentives to innovate, direct testimony, responded to questions The Oracle-Google dispute over intel- how best to protect intellectual property, directed to him by Judge Alsup, and then lectual property is one of several potentially and how to determine the appropriate com- been subject to cross examination by attor- “landmark” intellectual property cases pensation to the owners of intellectual prop- neys for both Oracle and Google. now in the federal courts dealing with erty whose IP has been used without being Had Oracle prevailed, Google would have smart phones and tablet devices such as licensed. For example, there is an ongoing had to pay potentially very large damages the iPhone, iPad, and Android-based or policy debate about whether jury awards in for past infringement to Oracle and then, Microsoft-based mobile devices. With tech- the cases heard to date have been “exces- going forward, take a license for the Java nologies that embed hundreds, and in some sive” and about current appellate court patents and copyrights allegedly incorpo- cases thousands, of patents and copyrights rulings that require experts to apportion rated in Android or possibly be forced to dis- in a single device, there are a number of pol- revenues or profits based on the incremental able Android. In the end, after a month-long icy and legal issues of considerable interest contribution of the in-suit patents and, per- trial on liability, the jury deadlocked on the now being considered by the federal courts, haps, copyrights. Doing so is very often an most important copyright issue and found federal agencies, and the U.S. Congress. extraordinarily challenging economic prob- for Google on the patents, i.e., the jury Most of these are technical in the sense that lem and an equally challenging econometric could not determine liability on copyrights they are tied to the technology of the mobile or other data-based exercise. and found that there was no infringement device itself or to the intricacies of patent JK

21 E / FEATURE

Alumni Spotlight: Nathan Sheets

I think the Church, the opportunities we have to “ serve in the Church, really gives us [as members] a huge advantage in our secular work...”

RECESSION. Economic meltdown. How did responses to the financial crisis; however, it All of these are embedded in the various Alexander Hamilton respond to the financial was time to seize new opportunities and so auxiliaries in wards and stakes….I think all crisis in the 18th century? How did the he accepted a position with Citigroup last of that gives us a huge advantage relative United States deal with its debt situation year. Now instead of serving only the Board to others and for me it has given me an ad- after World War II? These are just a few of of Governors—consisting of five individu- ditional perspective on issues.” the dilemmas economics alumnus Nathan als—his clientele has expanded to thou- Reflecting on his experiences at BYU, Sheets (’89) considered while searching sands. As he meets with his new clientele, Sheets explained that it was at BYU where for answers to improve the financial crises the discussions and analyses include the the interaction between academics and the of this century in the U.S. and especially in economic and political developments in the gospel evolved for him, something that has Europe. U.S. and abroad—a very similar set of is- been a foundation for faith and perspective After receiving his Ph.D. from MIT in sues to those he worked on at the Fed. One and continues to guide him throughout his 1993, Sheets worked at the Federal Reserve aspect he welcomes in his job at Citigroup is career and life. He notes, “It’s hard when Board in Washington, D.C. for 18 years and, the opportunity to invest more time pursu- you’re in college. It’s a time when you’re in 2011, he made the jump to the private ing issues of personal interest instead of the thinking hard about who you are and what sector working as the Global Head of Inter- tight focus on the interests of the Board of you want to be and having both a powerful national Economics at Citigroup. During his Governors. Overall Sheets says the issues academic environment at BYU and a power- last four years with the Federal Reserve, he which the Fed and private sector face are ful spiritual environment." He believes that served as the director of the Board’s Division quite similar: How should the Europeans environment gives students the best of both of International Finance, traveling regularly respond to the ongoing crisis? What are the worlds. with the chairman of the Fed to Switzerland positive things for the financial system? to interact with senior-level policy mak- Sheets has felt blessed in his career as Nathan and his wife, Kim, are the parents of ers from central banks around the world. he has served in various capacities in the four children: a daughter and three sons. He He considers these experiences some of Church. “When I became International hopes they, too, will someday have the oppor- tunity to attend BYU. A favorite pastime of the the most significant of his career. At these Director for the Fed and other positions, Sheets family is to make an annual trip to Dis- meetings, Sheets observed the formulation a lot of the things I learned about leader- ney World, but most importantly, they simply of policy, including the various responses ship were things that I had learned through enjoy spending time together. and considerations as monetary policy mak- service in the Church. I think the Church, ers thought about how to respond to the the opportunities we have to serve in the financial crisis. He recalls, “It really, really Church, really gives us [as members] a huge brought home that this is a global economy.” advantage in our secular work in terms of Sheets misses participating in these being able to interact with people, to work debates and efforts and observing the inside organizations, to lead an organization. CS

22 welcome to Boot Camp

unded by an anonymous and gener- The Macroeconomics Computational ing, they are expected to “hit the ground ous economics alumnus, the BYU Boot Camp was complemented by a Math- running” in these well-identified research F Economics Department conducted ematics Boot Camp, under the direction projects. The objective is to make their re- a special program during the spring of Professor Jeff Humpherys, which had a search contributions sufficiently substantial term called “Macroeconomics Computa- similar structure and purpose. No doubt, that each student will become a coauthor on tional Boot Camp.” The camp, directed by each student was challenged and stretched publishable research. Professors Rick Evans, Kerk Phillips, and as they completed both programs. Many of these students will go on to David Spencer, provided graduate school where, an intensive experience with their undergradu- to the ten students who ate research experience, completed the program. “I feel as if Boot Camp has been the they will be uniquely The program included prepared to succeed in lectures exposing stu- single most enriching academic experience the best programs in dents to a collection of the country. Others will analytical tools useful in in the whole of my scholastic life.” enter the job market cutting-edge economic with analytical tools and research and analy- CHRISTIAN BAKER research experience that sis. With emphasis on will set them apart and computation, students make them particularly were taught principles of economic model- These rigorous seven-week boot camps attractive to potential employers. ing, model solution techniques, and useful are just the beginning of the learning experi- Professors Evans, Phillips and Spencer econometric tools that go beyond their typi- ence, however. The principal purpose is to have been excited to see these outstanding cal coursework. The real learning took place prepare students to participate more mean- students rise to the boot camp challenge in application, with students participating in ingfully in research projects with faculty and to observe their excitement as they computer “lab” experiences and completing mentors during the rest of the summer and master powerful research tools and antici- challenging assignments that forced them to through the next academic year. With their pate an enriched research experience. master these tools. boot camp preparation and outside fund- DS

FROM PARTICIPANTS:

Chase Coleman TJ Canann

“Boot camp was a totally new experi- “Boot camp was a very stressful but ence. I had never been required to push also a very enriching experience. I really myself so hard to understand such large enjoyed being able to push myself be- quantities of material. The environment yond what I thought was possible. The in which such an intelligent group of ability to work with other students and students are able to gather together and learn how to do collaborative research understand a high level of material made with other students was a priceless it some of the most interesting weeks of experience." my year.”

Timothy Hills Sara Ehlert Ryan Brunt Ryne Belliston

“The only thing I can say about boot “…the professors were exceptionally “I have never been in a better learning “Boot camp was a tremendous learn- camp is that the six weeks of mental helpful and encouraging in pushing us environment than boot camp. The pro- ing opportunity. It moved quickly and abuse have had the highest returns out to be our best. I also thoroughly enjoyed fessors work closely with you and help covered a lot of material, but I loved of any other class I have taken as an working with my fellow students. Work- you master the material. The classwork the exposure to so many models and undergraduate. Looking back at confer- ing through challenging homework sets, pushed me to my limits and expanded problem solving methods-- most of ences I have attended, journal articles computer programs, and mathematical my capacity to solve problems and think which I otherwise would not have I have read, and research I have done, proofs in this group was an amazing analytically. And it is not just busy work. seen in my undergraduate studies. I'm I feel like the shades of ignorance have experience because our work was truly Every assignment helped me become a grateful to have had the opportunity to been removed and that I can finally un- collaborative: each student put forth better problem solver which is important gain knowledge and ability that will help derstand and contribute to the academic their best efforts, which, when put no matter what you study. However, me make meaningful contributions to and economic research world.” together, exceeded anything we could working with fellow students to solve research as an undergrad and will open have accomplished individually.” difficult problems was the highlight doors in my future.” of boot camp. I learned a lot from my classmates, made friends, and it was a lot of fun.”

23 E / FEATURE

I'm an Econ Major

Student Wins Achieving His Dream Jumpstart on Prestigious Grant at Stanford Law the Future

THIS YEAR, a number of our economics stu- DREAMING OF STANFORD LAW SCHOOL THIS PAST SUMMER, several economics stu- dents were recognized for their outstanding since he was twelve-years-old, one of dents attended and presented their research performance. Among them, 2012 gradu- Brigham Young University’s 2012 top at professional conferences throughout the ate Bryan Perry received the prestigious graduating students, Stephen Richards, country. This is a rare experience for under- National Science Foundation (NSF) grant. chose Stanford from among other great graduate students since most presentations These grants are awarded each year to offers including Harvard, Yale, Columbia, are given by professors, graduate students, fund specific research proposals, which are and the University of Chicago. The location, and other professionals. David Mauler, judged rigorously and awarded competi- curricular specialties, generous aid system, research assistant for Dr. James McDonald, tively, in accordance with the NSF purpose and “killer weather” drew Stephen, his wife, noted, “As someone considering a career in to “promote the progress of science; to Heather, and their five-month-old son, Dan- academia, I feel this [experience] opened my advance the national health, prosperity, and iel, to Stanford. eyes to an important part of the research welfare; to secure the national defense.” The With law school in mind, Stephen joined process which I hadn’t experienced before, grants have an average duration of three the economics major knowing the program being the presentation of original research years to support recipients through their would help him “develop the critical think- to peers to elicit feedback and promote idea- research at graduate school. ing skills that are so important in law.” Ste- sharing.… I also feel as though the uncom- Bryan’s research focuses on the coun- phen feels his economics degree and time at fortable experience of presenting itself was terfactual analysis of alternative monetary BYU prepared him well for his future career. beneficial. There will certainly be times in policy rules in response to the recent During his schooling, he also took advantage the future where I will need to present re- economic crisis. He hopes to eventually de- of opportunities to work closely with his search to individuals much more knowledge- termine which rules would have performed professors, including working as a teaching able than I. I feel as though I will be more best through the crisis by using a modified assistant for a few economics courses. prepared, having experienced this already at version of a popular macroeconomic model. Stephen looks forward to combining his eco- such an early stage in my academic career.” “My NSF research proposal came directly nomics and law degrees and hopes to study The major conferences attended this year out of my work with Dr. Spencer and Dr. antitrust law. According to Stephen, “Many were the American Statistical Association Phillips,” Bryan explained. This past spring, of the interesting questions that come up in and The Western Economic Association Bryan helped teach the Macroeconomics studying economics have answers, or even International. Grants from the Mary Lou Ful- and Computational Boot Camp with Drs. more interesting questions, rooted in the ton Chair and Economics Department made Spencer, Phillips, and Evans and feels this law. Combining econ and law should be a lot attendance to the conferences possible. CS provided him with a strong foundation for of fun.” his upcoming graduate level research. He Ultimately, Stephen will explore his op- acknowledged that the opportunity to con- tions while in law school, hoping to one day duct research and coauthor research papers work with a firm on the West Coast. RR with faculty was valuable. Bryan believes his research will provide better understanding of past recessions and assist economists in being better prepared for future crises. With his NSF grant in hand, Bryan will be able to continue his research at MIT, where he began his graduate work this fall. RR

24 economics, which got Ben curious enough to Two such experiences for Laura were Unintended take Econ 110 when he returned. the opportunities she had to do economics After taking Econ 110, and then later research in Namibia, Africa and India. These Consequences Econ 380, Ben was won over. “It was Econ trips solidified Laura’s focus in economics 380 that hooked me,” Ben said. “Dr. Price where she discovered she was most inter- would regularly mention current research he ested in the economics of education. and other economists were involved in and When asked, Ben said his most meaningful I was impressed by how economists study experience during his studies was be- LAURA AND BEN TENGELSEN met while they much more than just GDP, banking, and ing involved in the BYU Macroeconomics were both majoring in economics at BYU. unemployment rates.” Ben loved the variet- and Computational Laboratory. Here he had Neither came to BYU planning to major in ies of studies and research available and was the opportunity to work closely with both economics, but life has a way of leading us soon well on his way to economist status. Dr. Kerk Phillips and Dr. Richard Evans. “I in paths very unpredicted, yet much better As both Laura and Ben pursued their was able to take the skills I first learned in than expected. newfound life courses, they also found their class and develop them to a much higher Laura arrived at BYU with plans to courses beginning to cross, and it all started level,” he said. Because of this experience, graduate in mathematics, but that began to in the math lab. Ben was able to present their research at change during her freshman year when she “I was studying linear algebra and Ben three different conferences and in the pro- took Math 190 and Econ 110 in the same se- was doing differential equations” Laura cess learned that he really enjoys research- mester. As she grew to love economics, she explained. “I thought he was pretty cute for ing. began to compare it to her Math 190 course a math kid….Neither of us would have been Their extraordinary experiences during and realized she “didn't love it so much,” in those classes if it weren't for econ.” From their undergraduate programs continue as and decided she needed to explore the the math lab to “study dates” Ben and Laura Ben begins his Ph.D. program at Carnegie economics field. As she did, she said, “The saw more and more of each other. It was in Mellon University in Pittsburgh—one of only way we think as economists seemed to come Economics 588, that Ben knew their “rela- two students accepted into the economics naturally to me, and even my most difficult tionship was built to last when Laura’s test program this year. Laura is also preparing to classes were always enjoyable.” Though she scores were significantly higher than mine return to school for a year-long graphic de- kept mathematics as her minor, Laura chose and she still wanted to get married,” which sign program and is considering joining Ben to change course and embrace her true pas- they did in April 2011. at Carnegie next fall for a master’s program sion — economics. Aside from meeting each other, both in public policy and administration. Best Ben had interest in math as well, and Laura and Ben had many very meaning- of all, they won’t be doing it alone, as Baby in his consideration of majors he consulted ful experiences while at BYU which have Tengelsen prepares to make his grand debut with his mission president, a former profes- greatly influenced their lives now and for the in November. sor of economics at Colorado State. His future. president explained a lot about the field of MT

25 E / NEW FACULTY

New Faces

OLGA BOGACH DAVID HANSEN BRIGHAM FRANDSEN

Olga Bogach was born and raised in Dr. David Hansen joined the BYU faculty Brigham Frandsen returns to his alma mater Khabarovsk, Russia and joined The Church as a visiting assistant professor to teach (Physics/Econ B.S. '04) after completing a of Jesus Christ of Latter-day Saints when intermediate macroeconomics and develop- Ph.D. in economics at Massachusetts Insti- she was sixteen-years-old. Approximately ment economics shortly after completing tute of Technology, where his dissertation a year later, she left home to attend BYU- his doctorate at Stanford in 2011. While at focused on econometric methodology and Hawaii, graduating in 2005 as a valedictorian Stanford, he met his wife, Laura, who was labor economics. After his Ph.D., Dr. Frand- with a B.S. in international business and studying for her master’s in civil engineer- sen was selected as a Robert Wood Johnson a minor in economics. Having developed ing. Having grown up in Utah, the couple is Scholar in Health Policy Research at Har- a passion for economics, she pursued her happy to be back home along with their new vard University where he spent two years in Ph.D. in economics at the University of Ha- daughter Ila, born last December. residence furthering his research in econo- waii (UH). While completing her Ph.D., she Dr. Hansen’s research focuses on develop- metrics and labor economics, as well as add- taught economics courses at University of ment and crime. Currently, he is working ing health policy to his research agenda. Dr. Hawaii and worked as a research associate with his research assistant studying prison Frandsen's methodological research focuses for the UH Economic Research Organiza- data from Arizona and the effects peers on causal inference on distributional effects. tion. have on the chances prisoners will com- He applies these methodologies to questions Dr. Bogach's research focuses primarily mit other crimes and what types of crimes about the impact of labor market institutions on the evolution of foreign direct investment they will commit. He has also studied crime and interventions on education and earnings (FDI) around financial crises. She uses a va- in Mexico. Developing his own theoreti- outcomes. His health policy research deals riety of tools to examine the impact of crises cal model, Dr. Hansen applied data from with the consequences of fragmentation in on various types of FDI. She also employs Mexico to explore how promoting educa- the U.S. health care system. In addition to experimental methodology to study issues of tion through subsidies would reduce crime. research, Dr. Frandsen enjoys hiking and inter-cultural coordination and bargaining. Unfortunately, according to the model, it mountain biking with his wife, Christine, and would not heavily affect the crime rate but their four children. would improve education. In addition, Dr. Hansen researches gender gaps in math test scores across different countries, with the hope that he may identify the source of the gap and how to narrow it. RR

26 E

to be successful in the workforce. He also Bagley have known each other since their discussed how policies designed to increase childhood days in California. From their op- economic equality at a point in time and posing political views, they discuss current across generations may have distortionary political debates and hot issues based on In the impacts on the labor market that reduce one of Bagley’s cartoons. incomes overall. To read these articles, visit http://www.sltrib. Visit http://www.finance.senate.gov/hearings/ com/cat/BTL. News and then click “Boosting Opportunities and Growth Through Tax Reform: Helping More Young People Achieve the American Dream” to BUSINESS SECTION watch the full hearing. For the past year, Professor Kerk Phillips has written opinion editorials for the busi- TITHING AND TAXES ness section for the Deseret News, a Salt SLEEP STUDY Lake City-based newspaper. His articles dis- With the press’s increased interest in The cuss the market and macroeconomic policy. Professor Eric Eide and Professor Mark Church of Jesus Christ of Latter-day Saints, Showalter’s study on the relation between NPR’s Robert Smith recently ran an article To read Dr. Phillip’s articles, visit http://www. sleep and academic achievement was picked entitled, “What the IRS Could Learn from deseretnews.com/author/22971/Kerk-Phillips. up this winter by several news sources, Mormons.” It was inspired by an article writ- html. including MSNBC, Time, and U.S. News ten by Dr. Michael Ransom (Brigham Young & World Report. The study is the first in a University) and Dr. Gordon Dahl (Univer- series to examine sleep and its impact on sity of California at San Diego), “The Ten WHEN WALMART COMES TO health and education, and this article focus- Percent Flat Tax: Tithing and the Definition TOWN: ALWAYS LOW HOUSING es on the optimal number of hours of sleep of Income,” published in Economic Inquiry PRICES? ALWAYS?? for test score performance. Federal guide- in January of 2002. Ransom and Dahl used lines prescribe nine hours of sleep each the study to better understand how people Jaren Pope (assistant professor at BYU) and night for adolescents and teens; however, define income. Dahl explained that with this his brother, Devin Pope (associate profes- Eide and Showalter find the optimal amount understanding, “you can craft the tax laws sor at the University of Chicago) caught the of sleep decreases with age. They found a to better match people’s motivations.” Ran- interest of prominent news outlets such as strong relationship between the amount of som and Dahl surveyed 1,200 members and ABC News, CNN, The Chicago Tribune, and sleep youths got and how they performed on in their research they discovered that many popular economics blogs such as Marginal standardized tests. According to their study, Mormons “tend to adopt the most simple Revolution with their recently published the optimal amount of sleep for a 10-year- and generous definition.” While the Church research in the National Bureau of Eco- old is nine to nine and a half hours, for a never specifically defines income, it is clear nomic Research. Their research focused 12-year-old, it is eight to eight and a half that each member should pay ten percent on Walmart and its effect on neighborhood hours and for a 16-year-old, it is about seven of his or her income, leaving it to members housing prices. While many argue that living hours of sleep. The study was published in to determine what “income” entails. For near a Walmart is undesirable, and would the Eastern Economic Journal. example, while most members said they therefore lower the price of housing in the would pay a full tithe on the profit when area, the Popes discovered that the opposite To access the full article, visit http://www. they sold stock, they would not use the loss appears to be true. In fact, their research palgrave-journals.com/eej/journal/vaop/ncur- of sold stock to offset and lower the income that analyzed the openings of 159 Walmarts rent/full/eej201133a.html. they tithed on. According to Smith, “Many all across the U.S. estimates that a new religious traditions stress the importance of Walmart store increases housing prices by charity. But Mormons are remarkable for the between two and three percent for houses TAX REFORM amount and the precision with which they AND THE AMERICAN DREAM located within 0.5 miles of the store and give to their church.” by one to two percent for houses located between 0.5 and 1 mile. This summer, Dr. Lars Lefgren was invited For Citations: http://www.npr.org/blogs/mon- to testify as an expert witness in a hearing ey/2012/03/02/147749784/what-the-irs-could- To access the full article visit: http://www.nber. held by the United States Senate Commit- learn-from-mormons org/papers/w18111.pdf?new_window=1. tee on Finance. This hearing was held to discuss how the country can better provide equal opportunities for all children to POLITICAL CARTOONS achieve the “American Dream,” and provide sufficient educational opportunities to all, In October 2011, the Salt Lake Tribune independent of economic status. Dr. Lefgren launched a new weekly online feature enti- emphasized the importance of appropriate tled, “Behind the Lines” with BYU economist education policy for ensuring that youth and professor Val Lambson and Salt Lake have the opportunity to develop the skills Tribune cartoonist Pat Bagley. Lambson and

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27 E RECOMMENDED

Recommendations by Eric Eide Rick Evans Joe Price Dave Spencer Reads Steve Waters

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