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Matters, As All Economics Brief Examples m a t t e r s News for Alumni & Friends of the Department of Economics • Spring 2012 Comprehensive, full-service approach brings appreciation for advisors rom the curious high school Having made it through the cover letter workshops, holds one- senior to the alumnus 30 years majority of their academic careers, on-one meetings, arranges mock outF of school wanting to complete the stress and fear of unemployment interview sessions, and schedules their unfinished economics degree, can be unbearable as the clock meetings to discuss successful job the Economics Department ticks down to graduation. Luckily, and internship applications. advisors are here to help students career services coordinator Bethany at any point on their journey. The Nelson is here to calm these fears Allen, Susan, and Bethany are demanding walk up Bascom Hill and steer students on the right there every step of the way for becomes worthwhile once they path. Whether it’s working at our undergrads, striving to make are greeted by the smiling faces of Goldman Sachs or for a nonprofit economics the best department in our academic advisors. Whether organization, Bethany works to the world. it’s calming fears about schedule help students’ dreams come true. Lucy Cashin is a senior majoring in conflicts and graduation or just With the diverse opportunities a economics and communications. Taylor cracking a joke to brighten their day, major in economics offers, Bethany Luse is a senior majoring in economics and journalism. Allen Reigel and Susan Hering have works to meet the varied needs of all the answers. our students. She hosts resume and Having heard the questions, “What courses should I take?” and “Will I graduate?” several hundred times each week, you would think these two have a pretty dull job. But Susan wouldn’t have it any other way. “It’s the individuality of our students, and the experience of finding out who that student is, and what they are trying to do with economics that makes this the best job in the world.” Students come to the department with double majors in everything from dance to communications. Combine this with a significant international student population and you’ve got one of the most diverse departments at UW. Allen and Susan are committed to helping students realize that they truly are the backbone of this department, and that they never feel lost among the 40,000 other students at this school. Allen Reigel, Susan Hering and Bethany Nelson 1 A View from the Chair economy and society. I give three economics matters, as all economics brief examples. alums understand. Economics Matters • This fall Steven Durlauf was Matters, of course, is not just a s part of our department named a Vilas Professor—the verb. Economics matters, when Abranding, we have started UW’s most distinguished chaired matters is a noun, is a way to tell using the words “Economics professorship. In addition to his the department’s story to our Matters.” This is, of course, a prolific research on economic alumni and friends. The 2011-12 play on words. But in a recent growth, model uncertainty, academic year continues to have conversation, an alum asked, “Why and crime, he is a member of many rewards. My colleagues, does economics matter?” As usual, the National Academy Panel Charles Engel (Warf Named our alums pose sharp questions. of Deterrence and Capital Professorship) and Christopher Punishment for the National Taber (Kellett Mid-Career Award), Economics matters for the Academy of Sciences. received prestigious campus-wide lives of our students. Over 900 awards. Our most senior graduate students at the University of • This spring, my colleagues, students have just gone through the Wisconsin–Madison have trusted Marzena Rostek and Marek job market. Our undergraduates the economics department to Weretka, were voted tenure by continue to do amazing things, shape their college educations the department. One piece of such as producing Equilibrium, a by declaring economics as their their collaborative work studies student-run journal, creating the major. As recently as 2006-07, the price setting in financial markets. “Madison Fund” (a microlending department had slightly more than Economists typically assume organization in Madison), doing 300 majors. The lousy economy traders are unable to affect prices. excellent work in the classroom, surely has something to do with While a convenient assumption, and finding jobs in a very difficult this increase. But the department this patently makes no sense in market. We are also fortunate is doing many other things right as markets with “large traders” (for to have amazingly supportive well, from faculty teaching high- instance, investment banks and alumni. Individual contributions quality courses, graduate students institutional investors) whose to the annual fund doubled this doing a generally excellent job as decisions have a major impact on last year and the number of first- TAs, to having outstanding advisors everyone’s terms of trade. Such time donors more than tripled. in our undergraduate office, and traders must strategically account These gifts are very important to the efforts of Bethany Nelson, our for the impact of their trades the department. In the last year, we full-time career advisor whose on the prices and other traders. were able to increase services in position is supported by alumni Marzena and Marek have made the undergraduate office, support gifts. Undergraduates are very tremendous progress developing faculty recruitment and retention, smart—if you are not producing a the underpinnings of dynamically assist graduate student travel and good product, they will not major in thin markets. projects, finance the printing of your department. The large increase Equilibrium, provide scholarships in the number of majors is one • Stockwell Professor Robert Staiger for deserving undergraduates, and indication that economics matters. was hired last year from Stanford, where he was a chaired full support alumni networking and Economics matters for the well- professor. Bob’s research examines outreach. My colleagues and I are being of families and our nation. international trade agreements grateful for your support. It makes It is not surprising that students and trade institutions, asking, an enormous, positive difference. are gravitating to economics. among other things, why do On Wisconsin! The systematic consideration governments bother to negotiate of objectives, constraints, and trade agreements and, given the challenge of achieving those they do, what do they hope to objectives in the most efficient way Professor John accomplish in agreeing to a prior Karl Scholz is possible is at the heart of sound set of rules by which negotiations the Nellie June decision-making in almost every are to proceed? Gray Professor sphere of life. My faculty colleagues of Economic are doing fascinating work applying Whether in life or death, financial Policy. He can frontier-moving economic analysis markets, or global trading, be reached at [email protected] to important questions affecting the 2 Department the latest beneficiary Generosity continues to flow as Morgridges fund chair in economics John and Tashia Morgridge, devotees to philanthropy, have done it again with another series of high impact gifts to the university. This time the Economics Department is the recipient of their zeal to inject sustaining funds into the University of Wisconsin–Madison. Their most recent funding for the Morgridge Chair in Economics cannot be underestimated. “Endowed chairs are the bricks that lay the foundation for the future of any university department,” says Professor Ananth Seshadri, past Economics Department chair. “What many may not realize is that endowed chairs, once established, are self-sustaining and permanent, providing generation after generation of students with access to the finest scholars in academia through faculty salary and research support.” UW-Madison News & Publications Service, Norman Lenburg, John Morgridge, former Chair and Chief Executive Officer of Cisco Edwin Young, former Systems, and his wife Tashia also endowed two chairs in computer Chancellor and economist, science and another in geosciences. served in tumultuous times The Morgridges’ multi-million dollar gifts have made them lead donors for the Wisconsin Institute of Discovery and the Morgridge It’s hard to imagine a more Institute of Discovery building, as well as for renovation efforts for challenging period during which to the Education Building, among many other gifts in the last lead the University of Wisconsin, several years. but UW economist professor Hugh Edwin Young did so bravely and Current chair John Karl Scholz adds, “We are humbled and thrilled to be the latest recipients of the Morgridges’ remarkable generosity effectively as Chancellor during the to the University of Wisconsin—Madison. Through the support of Vietnam War era. generous alums, the University and College of Letters & Science, the Graduate School, and the hard work and enthusiasm of our students, Young earned his MA and PhD in faculty and staff, the department is as strong now as any time since economics, having later served I arrived in 1988. The Morgridges’ gift will make a tremendous, as chair of the UW Economics positive difference in preserving and enhancing our success.” Department. After being appointed chancellor in 1968, Young called in the Wisconsin National Guard to quell protests, endured the trauma of the Sterling Hall bombing and oversaw the merged University of Wisconsin
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