MICHECON NEWS Winter 2007/2008 for University of Michigan Economics Department Alumni and Friends

MICHECON NEWS Winter 2007/2008 for University of Michigan Economics Department alumni and friends Celebrating With Pomp and Circumstance he 2007 Undergraduate Commencement Celebration in- sity of Michigan has meant to him and encouraged them to stay Tcluded all the pomp due the circumstance of the event. For involved with the Department, sharing both his own experience the first time in Department history, the celebration began with as an alumnus, as well recent contacts he had with international academic-gowned faculty, graduates, and guest speaker Ralph C. alumni in India, France, and Italy. Heid, ’70 econ, marching into Rackham Auditorium as a Univer- sity-student string quartet played Elgar’s celebrated piece. Heid told the graduates that, “I use what I learned at Michigan every day,” adding that whatever vocation they pursue, they will Following welcoming remarks by Department Chair Matthew find that, “Michigan has prepared you very well in the fundamen- Shapiro, and Director of Undergraduate Studies Jim Adams, tals. Heid, senior vice-president of international finance, Comerica Bank, and a member of the Department’s Economics Leadership “You will find that you carry with you a hard-earned degree from Council, gave the first commencement address ever presented at one of the most prestigious economic programs in the world. the Department’s undergraduate commencement celebration. In You will find that you will get job interviews where others might his speech, titled “Terms of Engagement” Heid spoke to gradu- not and that you may have an edge when applying to graduate ates about what his own degree in economics from the Univer- school.” continued on page 4 Michigan take at least one economics course during their studies. From the Chair Matthew can take tremendous pride in the fact that we educate so many and so well. I write to you in a role that is new and still a bit unfamiliar to me. Every day During the same period 65 students earned their doctorates. We as I enter Lorch Hall, my heart skips a are as proud as parents in talking about our doctoral students, and beat. Part of this reaction is surely due to for years we have bragged about the fact that every one of our the excitement that I feel in leading this graduates goes on to work in a professional capacity as an econo- prestigious group of scholars. Part of my mist, be it in the academy, the private sector, or in government reaction is in anticipation of the many service. Last year’s placements exceeded our wildest expectations new challenges that come with serving as our students accepted positions at Harvard, Yale and Berkeley, as an administrator in this great Univer- to list just a few. sity. And part of it is the knowledge that I have some very large shoes to fill. So before I turn to the “what Matthew also can take credit for having recruited 19 new faculty next for economics at Michigan?” part of my letter, I would like to the Department. We have made key senior hires in economic to take a moment to reflect on the many accomplishments of my theory and labor economics, and our group of 14 assistant profes- predecessor, Matthew Shapiro. sors is arguably the most talented group of young scholars in economics anywhere in the world. As part of my new-chair tutorial, Matthew bequeathed to me a set of spreadsheets. Being economists, we love spreadsheets Matthew would be the first to say that little of this would have and these Excel files tell the story. Under Matthew’s leadership been possible without the hard work of his colleagues, the (2004 – 2007), over 1,400 undergraduates earned their bachelors commitment of the College and University administration and degrees in economics and 108 students completed their masters notably, the sustained support of our alumni. The Economics in applied economics. Economics is currently the fifth largest Leadership Council now functions as a key advisory group to concentration on campus, and over half of all undergraduates at the Department, meeting with us annually to help us develop and move toward our long-term goals. We are thrilled with several major gifts that have been made recently (see pp.6 and 11 for de- MichEcon tails). And countless other alumni have stepped forward to offer their time and financial support to our academic programs. NEWS Winter 2007/2008 Though much has been accomplished under Matthew’s capable vol. 10 no.1 leadership, there is so much more to do. The process of hiring is never done, as faculty retire, move on to other positions at Michi- 5 Life After Econ 101 gan or elsewhere, and fields evolve in new directions. We already More than 150 undergraduates receive have a full slate of candidates under consideration and it promises career advice from Department alumni to be an exciting year of renewal and growth. 6 Faculty News A second area needing attention is the financial status of our 10 Alumni News doctoral program. Before taking on the job as chair, I served for six years as director of graduate studies. The doctoral program is at the core of the intellectual life of the Department and the lack Photos in this issue by Scott Galvin, Lin Jones, U-M Photo Services. of funding for recruiting new students and supporting continuing students has reached crisis levels. I am encouraged by President Published by: The University of Michigan Department of Economics, 238 Lorch Hall, 611 Tappan St., Ann Arbor, MI, 48109-1220. Phone: (734) 764-2355, Fax: (734) 764-2769. Coleman’s initiative (see page 11) to match donations made to graduate student support. Edited by: Noreen Ferris Wolcott, AB ’77 ©2007 The University of Michigan Department of Economics And while we are optimistic about the future of the Department, Regents of the University of Michigan: Julia Donovan Darlow, Ann Arbor; Laurence B. we have to be cognizant of current economic conditions in Michi- Deitch, Bingham Farms; Olivia P. Maynard, Goodrich; Rebecca McGowan, Ann Arbor; An- drea Fischer Newman, Ann Arbor; Andrew C. Richner, Grosse Pointe Park; S. Martin Taylor, gan. This will of necessity be a time for creative solutions in the Grosse Pointe Farms; Kathrine E. White, Ann Arbor; Mary Sue Coleman, ex officio face of tightening budgets. The University of Michigan, as an equal opportunity/affirmative action employer, complies with all applicable federal and state laws regarding nondiscrimination and affirmative action, including Title IX of the Education Amendments of 1972 and Section 504 of the Re- On behalf of our students and faculty, let me thank you for your habilitation Act of 1973. The University of Michigan is committed to a policy of nondiscrimination and equal opportunity for all persons regardless of race, sex*, color, religion, creed, continued support. The next four years promise to be exciting national origin or ancestry, age, marital status, sexual orientation, disability, or Vietnam-era ones, and I look forward to getting to know you better. veteran status in employment, educational programs and activities, and admissions. Inqui- ries or complaints may be addressed to the Senior Director for Institutional Equity and Title IX/Section 504 Coordinator, Office of Institutional Equity, 2072 Administrative Services Build- ing, Ann Arbor, Michigan 48109-1432, 734-763-0235, TTY 734-647-1388. For other University of Michigan information call 734-764-1817. *Includes gender identity and gender expression 2 MichEcon News Michigan Economics Society Provides Many Opportunities For Undergraduate Students Vigorous growth and program expansion is redefining The Michi- gan Economics Society at the University of Michigan. Two years ago, MES had only 120 members with limited programming and a low participation rate. Last year, MES, which was founded in 1976, established itself as one of the premier student organiza- tions on campus with a membership of 389 students and multiple, innovative programs. MES has continued its rapid expansion in 2007 and is now one of the largest U-M student groups with a membership of over 425 students from all academic backgrounds. A primary goal of MES is to provide additional learning expe- riences for students outside of the classroom. This is accomplished through an array of events and services such as the Faculty and Alumni Seminar Series, exclusive corporate presen- tations, the Investment Challenge, community service opportunities, recruiting and graduate school information, economics tuto- ring, and other academic support services. These programs allow Early in September, MES officers sign up new members dur- members to develop valuable organizational and leadership skills ing Festifall on the Diag. while gaining a better understanding of “real world” economics. Faculty and Alumni Seminars are new programs and have been for developing new ideas and helps the student body better a key factor in the Michigan Economics Society’s rapid growth. understand Michigan’s current economic situation. Speakers who “The level of support received from both the Economics faculty discussed the Forum’s 2007 topic “How will Michigan Regain its and alumni have contributed to quality events our members truly Competitive Advantage?” included John Austin, vice president of the Michigan State Board of Education and a nonresident Senior Fellow with the Brookings Institution; Charles L. Evans, vice MES encourages all alumni interested president (now president) of the Federal Reserve Bank of Chica- in giving a presentation to email the go; Peter Hooper, AM ’71 econ, PhD ’75 econ, chief economist, group at: [email protected]. Deutsche Bank Securities; Joel Vander Kooi, assistant treasurer of risk management for the Kellogg Company; and Steven Sza- kaly, an economist with the Center for Automotive Research. The benefit from,” says MES President Michael Schiemann.

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