sign in sign up
<<
Home , Abhijit Banerjee, Amy Finkelstein, Benjamin Olken, Esther Duflo, John Bates Clark, Michael Kremer

Table of Contents

Introduction Recent Developments 4 Department Overview 6

Academic Programs Undergraduate 9 Graduate Economics 11

Fields of Study Economic Theory 13 15 18 19 21 and Regulation 23 Labor Economics 25 Environmental Economics Program 26 Public Economics 27 Political Economy 28 28 Organizational Economics 30 31

The Institute of Technology is committed to the principle of equal opportunity in education and employment. The Institute prohibits discrimination against individuals on the basis of race, color, sex, sexual orientation, gender identity, pregnancy, religion, disability, age, genetic information, veteran status, or national or ethnic origin in the administration of its educational policies, admissions policies, employment policies, scholarship and loan programs, and other Institute administered programs and activities; the Institute may, however, favor US citizens or residents in admissions and financial aid.*

The Vice President for Human Resources is designated as the Institute’s Equal Opportunity Officer. Inquiries concerning the Institute’s policies, compliance with applicable laws, statutes, and regulations, and complaints may be directed to Ramona Allen, Vice President for Human Resources, Building NE49-5000, 617-324-5675. In addition, inquiries about Title IX (which prohibits discrimination on the basis of sex) may be directed to the Institute’s Title IX Coordinator, Sarah Rankin, Room W31-223, 617-324-7526, [email protected]. Inquiries about the laws and about compliance may also be directed to the Department of Education, Office for Civil Rights, Region I, 5 Post Office Square, 8th Floor, Boston, MA 02109- 3921, 617-289-0111, [email protected].

* The ROTC programs at MIT are operated under Department of Defense (DoD) policies and regulations, and do not comply fully with MIT’s policy of nondiscrimination with regard to gender identity. MIT continues to advocate for a change in DoD policies and regulations concerning gender identity, and is committed to providing alternative financial assistance under a needs-based assessment to any MIT student who loses ROTC financial aid because of these DoD policies and regulations. ©2020 Massachusetts Institute of Technology 4 Economics at MIT Memory ofAlfredNobel in EconomicSciences in Sveriges RiksbankPrize winners ofthe2019 Duflo, Abhijit BanerjeeandEsther Recent Developments research andeducation. For example, thisyear, ouralumnus andlong-timesupporterC.C. Chen(’63,Sloan’65, The generosityof alumniandfriendshelpsthedepartment thriveandcontinuedelivering cutting-edgeeconomics “Building BetterJobsinan Age ofIntelligentMachines,” inNovember2020. Work oftheFuture InitiativeandanMIT-wide Task Force onthe Work oftheFuture, whichreleaseditsfinalreport, Autor co-directadepartmentinitiative on The Future of Work, andDavid Autor co-directsbothaJ-PAL North America number ofnewinitiativesthatfocus onthedramaticchangesongoinginlabormarkets. andDavid Action Labs,J-PAL GlobalandJ-PAL North a America, theSchoolEffectivenessandInequality Initiative(SEII),and initiatives thatspanawiderangeofresearchersandresearchsponsors. These include Abdul LatifJameelPoverty In additiontopursuingtheirindividualresearchagendas,many departmentfaculty leadcollaborativeresearch directs theMarket Designworkinggroup. Economics Program,Robert GibbonsdirectstheOrganizationalEconomics Working Group,and co- Health Care Programin2020(aroleheldbyJonathanGruberthrough2019), Ben Olken co-directs theDevelopment Poterba. isco-directoroftheNBERLabor StudiesProgram, becameco-directorofthe Bureau ofEconomicResearch (NBER),whichisledbyMitsuiProfessorofEconomics andNBERPresidentJames Economics Profession;andMuhamet Yildiz wasnamedafellowoftheEconometricSociety. Two ofourfaculty, Daron list; NancyRose receivedtheCarolyn ShawBell Award fromthe AEA Committee ontheStatusof Women inthe Association of ;Parag Pathak wasnamedbyScienceNews totheirSN10:Scientists Watch Newey wasnamedaDistinguishedFellow ofthe American Economic Association andaFellow oftheInternational Distinguished Center ofEconomicStudiesFellow; JonathanGruberwasawardedaGuggenheimFellowship; Whitney Erasmus SchoolofEconomicsinRotterdam; Amy Finkelstein waselected totheBritish Academy andnameda2019 elected tothe American Academy of Arts andSciences;EstherDuflowasawardedanHonoraryDoctorate fromthe Victor Chernozhukov wasinductedasafellowoftheInstituteMathematicalStatistics;DaveDonaldson marking the25thanniversaryofHeinz Awards; Abhijit BanerjeewaselectedtotheNational Academy ofSciences; A selectionofthemany otherhonorsandawardsofthepastyearinclude:David Autor receivedaspecialaward Toulouse SchoolofEconomics. Tirole (PhD1981),whohashadavisitingfacultyappointmentwiththedepartmentsincehemovedfromMITto number ofMITEconomicsfacultytoreceivetheNobelPrizeinlastdecadefour—five,whenweincludeJean person toreceiveanEconomicsNobelPrize,andonlythesecondwomanthathonor. This bringsthe development ofnewantipovertyprograms.DufloisthefirstMITalumnatoreceiveaNobelPrize,youngest development economics,usingfieldexperimentstobringnewprecisionresearchonglobalpovertyandthe Michael KremerofHarvardUniversity. ProfessorsBanerjeeandDuflohavebeeninnovatorsintheareaof ’s 2019NobelPrizeinEconomicSciences,sharedwithformerMITEconomicsfacultymember prestigious recognitionsfortheirwork. The highlightofthe2019-20 academicyearwas ’s and MIT facultyareontheleadingedgeofeconomicresearch,andcontinuetogarnerwidespreadaccolades to be well-represented in the leadership of the National to bewell-representedintheleadershipofNational serve ontheexecutive committee.MITEconomicscontinues Daron Acemoglu, Amy Finkelstein, and Whitney Neweyalso Stephen MorrisispresidentoftheEconometricSociety, where of theSocietyforInstitutionalandOrganizationalEconomics. four yearsasco-editor. Robert Gibbonsisthepresident-elect American EconomicJournal: servingfor Applied Economicsafter Insights; andthisyear, BenOlken becameaneditorofthe founding editorofthe AEA journalAmericanEconomicReview: editor ofthe American EconomicReview; Amy Finkelstein isa international professionalsocieties.EstherDufloservesas leadership attopeconomicsjournalsandnational MIT facultyextendtheirprofessionalimpactthrough their mentorshipanddevotiontostudents’well-being. by MIT’s “Committed toCaring” programinrecognitionof Acemoglu and ,werealsoamong12honored

self-examination, and outreach; and both the GEA and UEA are turning to work on these important issues. self-examination, andoutreach;boththeGEA andUEAareturningtoworkon theseimportantissues. previously heldby thedepartmenthead;afaculty committeehasbeenestablished tofocusonantiracismeducation, MIT facultyontopics ofdiscriminationanddiversity; thedepartmenthasappointed anewDiversityOfficer, arole Symposium inDiversity, hasbeenaddedforcourse creditinfall2020andfeatureslecturesfromguestscholars and and resourcestodevelopingamore robustresponsetoinclusionandequityissues. A newgraduateseminar, difficult butmuch-neededconversations and action atMIT, andtheEconomicsDepartmenthascommittedtime The antiracismandBlackLivesMatter proteststhatcapturednationalattentioninlateMayand early Junesparked http://economics.mit.edu/covid19. website forCOVID-19 relatedresearch,withmorethanadozenworkingpaperspostedby theendofJune, other scholarsinpivotingtheirresearchtotargetCOVID-19-relevant work. The departmentlaunchedanew activities, MITEconomicsfacultyembracedadiversesetofapproaches toonlineinstruction,andquicklyjoined In spring2020,astheCOVID-19 pandemicledtotheclosureofschools,workplaces, andmostin-person degrees inDEDPSeptember2020. successfully completedtheirspringcourseworkandsummerpracticums, andwereawardedthefirstMITMaster’s MIT residentialsemesterwascutshortbycampusclosuresinmid-March duetotheCOVID-19 pandemic,students exceptional studentswasacceptedfortheinauguralclass,andarrivedoncampusinJanuaryof2020. Though their semester ofin-personinstructionandmentoredinternshiptotheir MicroMastersfoundation. A diversegroupof22 online MITx MicroMasterscredentialinDEDPtoapplytheresidentialMaster’s program,whichaddsa program, inData,Economics,andDevelopmentPolicy (DEDP). This programinvites thetopstudentsearning The department,largelythroughitsfacultyandstaffaffiliatedwith J-PAL, hasdevelopeditsfirstMasters’degree School ofHumanities, Arts, andSocialSciences,[email protected]. on supportingMITEconomics,pleasecontact Anne MarieMichel,the Assistant DeanforDevelopmentintheMIT a competitivefellowshipfordoctoralstudentsinappliedmicroeconomicsandeconometrics.For moreinformation emeritus JerryHausman,acohortofsevenstudentsalsoreceivedsupportfromHausmanDissertationFellowships, support graduatestudentsinthedepartment.For asecondyear, thanks tothecontinuinggenerosityofprofessor the Altman Family Fellowship Fund, endowedinhonorofEconomics Visiting Committee ChairRoger Altman, to students duringtheircourse-takingaswelldissertation-writingyears. This year, wewelcomedthecreationof of Economics. The departmentisalsogratefulforanumberoffullandpartialgraduatefellowshipsthatsupport (PhD’63).StephenMorriswasnamedtheinauguralPeter Diamond(PhD’63)Professor A. A. Economics PhD’67) establishedanewprofessorshipinhonorofInstituteProfessoremeritusandNobellaureate

Fellowship for2020. awarded aGuggenheim in fall2019.Gruber was Jonathan Gruber teaching Ford ProfessorofEconomics

5 Economics at MIT 6 Economics at MIT Sciences was firstawarded in1969. The NobelMemorial PrizeinEconomic (deceased) MIT InstituteProfessor ofEconomics Samuelson Paul A. 1970 (deceased) Lawrence R.Klein,MIT, PhD1944 1980 Economics (deceased) MIT InstituteProfessorofFinanceand 1985 Emeritus MIT InstituteProfessorofEconomics, Robert M.Solow 1987 Robert C.Merton,MIT, PhD1969 1997 ,MIT, A. PhD1956 1999 MIT ProfessorofEconomics,1978-1991 Daniel L.McFadden 2000 Joseph E.Stiglitz,MIT, PhD1966 ,A. MIT, PhD1966 2001 MIT ProfessorofEconomics,1969-1977 Robert F. Engle 2003 MIT ProfessorofEconomics,1977-1984 Eric S.Maskin 2007 1980-1994 and1996-2000 MIT ProfessorofEconomics, Paul R.Krugman,MIT, PhD1977 2008 Emeritus MIT InstituteProfessorofEconomics, Peter Diamond,MIT, A. PhD1963 2010 Robert J.Shiller, MIT, SM1968,PhD1972 2013 1984-1991 MIT ProfessorofEconomics, , MIT, PhD1981 2014 MIT ProfessorofEconomics,1984-1993 Oliver S.D. Hart MIT ProfessorofEconomics Bengt R.Holmström, 2016 William D. Nordhaus,MIT, PhD1967 2018 MIT ProfessorofEconomics,1993-1999 MIT ProfessorofEconomics Esther Duflo,MIT, PhD1999 MIT ProfessorofEconomics Abhijit V.Banerjee 2019 in EconomicSciences MemorialPrize Nobel MIT Economicsandthe Department Overview science (6-14). This alsoincludes44studentsminoringineconomics,andanother272 who (14-2), and96studying computerscience,economics,anddata courses. This includes151economicsmajors, with34studyingeconomics(14-1), 21studying During the2019-2020 academicyear, atotalof2,019undergraduatesenrolledineconomics US collegeoruniversity, anditsclassesattractalargeundergraduatestudentenrollment. The departmentoffersoneofthemostrigorousundergraduateeconomicsprogramsany offices ofthe AmericanEconomic AssociationandtheEconometricSociety. and theEconometricSociety. Numerousfacultymembershaveservedinvariouselected Fellows oftheNational Academy ofSciences,the American Academy of Arts andSciences, department’s facultyhavereceivednumerousawards,includingtheNobelPrize.Many are The MITEconomicsDepartmenttodayisavibrantcollectionoffacultyandstudents. The economics departments. are nowwell-representedonthefacultiesofvirtuallyallleading Graduates oftheMITEconomicsDepartment’s doctoralprogram as oneoftheworld’s leadingcentersforeconomicresearch. university administration.By the1950s,ithadestablisheditself entrepreneurial leadershipfromRupertMacLaurinandasupportive expanded significantlyintheyearsfollowing World War IIwith a centralrolewithintheSchool. The EconomicsDepartment Sciences (SHASS)in1950,withtheEconomicsDepartmentplaying MIT establisheditsSchoolofHumanities, Arts, andSocial emulated atotherleadinginstitutions. approach tograduatetrainingineconomicshasbeenwidely in 1941,itintroduceditsworld-renownedPhDprogram.MIT’s graduate coursesleadingtoamaster’s degree.Four yearslater, and expandingeconomicsatMIT. In1937, thedepartment added the MITEconomicsDepartment,playedamajor roleinpreserving American EconomicReview fortwentyyearsandalongtimechairof part ofthetwentiethcentury, DavisR.Dewey, theeditorof and presidentofthe American Economic Association. Intheearly US Census, wasaleadingeconomistofhisday. Hewasafounder the rankofBrigadierGeneralinCivil War anddirectedthe1870 undergraduate studiesineconomicsatMIT. Walker, whoroseto . , MIT’s thirdpresident,introduced played aleadingroleineconomicseducation,research,andpublic For overacentury, theDepartmentofEconomicsatMIThas faculty members Awarded PrizewhileservingasMITEconomics theNobel Franco Modigliani Abhijit Banerjee Esther Duflo Bengt Holmström Peter Diamond

MIT Economics Department Head, Glenn Ellison Photo: JustinPhoto: Knight MIT SHASS Kenan Sahin Dean, Melissa Nobles Robert SolowRobert Economy &EconomicDevelopment” ran forthefirst time in Scientists” (fall2016). Ournewestonlinecourse, 14.750x “Political (fall2016),and14.310x “Data Analysis for Social Development Economics” (fall2015),14.100x “Principlesof include 14.740x “Foundations ofDevelopmentPolicy: Advanced online undergraduateeconomics offeringshaveexpandedto online coursethroughMITx inthespringof2013.Sincethen, “The ChallengesofGlobalPoverty,” madeitsdebutasafull The undergraduatedevelopment economicscourse14.73x: of 2022. with morethan100declaredmajors, 42ofwhomareintheclass program. Studentinterestinthisnewofferinghasbeenstrong, for thiswassimilartothattheEconomicsandStatisticsPhD 6-14, Computer Science,Economics,andDataScience.Motivation introduction in2017 ofanew undergraduateeconomicsmajor, Electrical EngineeringandComputer Science(Course 6)ledtothe undergraduate economicseducation.Successfulcollaborationwith The departmenthasalsobuiltonitsinvestments intransforming joint PhDdegree. this graduated twostudents—oneeachin2019and2020—with the useof“bigdata” ineconomicanalyses. The departmenthas to advancethetheoreticalandempiricalresearchfrontiersin methods atthecuttingedgeofdatascience,andpreparesthem their exposuretothefoundationalstatistics,theory, andempirical economics andstatistics. The degreeenablesstudentstodeepen Systems, andSociety(IDSS)tocreateajointPhDdegreein In 2018,EconomicspartneredwithMIT’s InstituteforData, to overseetheirmarket strategiesandundertake research. recent years,major Internetfirmshavehired top economicstalent research andpolicyorganizations,privatesectorfirms.In bygovernments,domesticandinternational are alsosoughtafter careers. While amajority enteracademia,MITeconomicsPhDs dissertation. GraduatesofMIT’s PhDprogrampursuediverse while theremainderofprogramfocusesonwritingadoctoral years ofthePhDprogramaredevotedprimarilytocoursework, MIT, takinggraduatecoursesanddoingresearch. The firsttwo Doctoral candidatestypicallyspendsixyearsinresidenceat elsewhere intheworld. from American universities,whiletheresthavedegreesfrom of ouradmittedgraduatestudentshaveundergraduatedegrees demand forgraduateeconomicstraining;today, approximately half methodology. There iscontinued andgrowinginternational frontiers ofeconomictheory, dataanalysis,andeconometric in microeconomicsandmacroeconomicsadvancethe program. Studentdissertationtopicsspanawiderangeofissues were 124graduatestudentsenrolledinthedepartment’s PhD hundred applicants.Duringthe2019-2020 academicyear, there twenty-four candidates,selectedfromapproximately seven institution. EachyeartheMITPhDprogramenrollstwentyto The departmentisconsistentlyranked asatopgraduatetraining donated bygenerousalumni. Opportunities Program(UROP) anddepartmentalUROP funds a numberfundedbytheInstitute’s UndergraduateResearch in researchprojectssupervisedbyeconomicsfaculty, including as wellstudentsfromotherdepartmentsatMIT, participated took economicsasaconcentration.Many undergraduatemajors,

Course-Ware (OCW)initiative (ocw.mit.edu). materials freelyavailable onlinethroughMIT’s heraldedOpen Department—seventy-one atlastcount—havealso madetheir graduates. The majority ofclasses offeredbytheEconomics available onlinetocurrenthighschool enrolleesandhighschool invested inasetofMITx coursesthat make MIT-level instruction well-grounded aswouldbestserve them.Departmentfacultyhave and incoursesthatarenotassubstantively currentortechnically economics maybeginatthehigh schoollevelformany students, campus. Faculty membershave recognizedthatexposureto economics educationavailabletolearnerswellbeyondtheMIT MIT facultyalsostrivetoimprovetheaccessandqualityof Evaluations” (spring2017). (fall 2016),andJ-PAL 102x“DesigningandRunningRandomized 2014), J-PAL 350x“MeasuringHealthOutcomesinFieldSurveys” also launchedJ-PAL 101x“Evaluating SocialPrograms” (spring September 2019. The Abdul LatifJameelPoverty Action Lab(J-PAL) Awarded 2010 Esther Duflo, and youngestrecipient. spent hisentireacademiccareerontheMITfaculty, wasthefirst death in2019,wasalsoaClarkMedalist. The latePaul Samuelson,who Franklin Fisher, whoservedonthedeparment’s facultyfrom1960untilhis Jerry HausmanandRobert Solow—arealsoClarkMedalists. The late and Parag Pathak (awarded’18). Two emeritusfacultymembers— (awarded ’17), EstherDuflo(awarded’10), Amy Finkelstein (awarded’12), are ClarkMedalists:Daron Acemoglu (awarded’05),DaveDonaldson class, 1999,includedthreerecentwinners.Fivecurrentfacultymembers Clark MedalswereawardedtoMIT-trained .Onegraduating gone ontowintheNobelPrizeinEconomics.Eightoflastseventeen Prize. Approximately 40percentofClarkMedalwinnershave(sofar) most prestigiousawardsinthefieldofeconomics,alongsideNobel JohnBatesClark(1847-1938), itisconsideredoneofthetwo the thought andknowledge.Namedafter American neoclassical forty judgedtohavemadethemostsignificantcontributioneconomic Economic Association tothe American economistundertheageof The JohnBatesClarkMedalisawardedeachyearbythe American MIT andtheJohnBatesClarkMedal Awarded 2018 Parag Pathak, Awarded 2017 Dave Donaldson, Awarded 2005 Daron Acemoglu, Awarded 2012 Amy Finkelstein, John ClarkMedal Bates

7 Economics at MIT 8 Economics at MIT Policy Club. banks. The lecturewasco-sponsored bytheSloanSchoolFinanceand the challengeswhen politicalpressuresarebrought tobearoncentral his distinguishedcareerinpublic service.Hediscussedinparticular lessons ontheroleofeconomic analysis inpolicydesignbasedon who istodayaSenior Adviser atBlackRock firm,offered delivered thefalllectureon“Central BankIndependence.” Fischer, of theBankIsraeland Vice-Chair oftheFederal Reserve Board, In September2019,Dr. StanleyFischer(PhD’69),theformer Governor prominent economiststosharetheirexpertisewiththeMITcommunity. Each year, theUndergraduateEconomics Association (UEA)invites UEA Speaker Series and EstherDuflo MIT Economics: Abhijit Banerjee Laureatesfrom The NewestNobel Sciences, andisthefirstMITalumnatoreceiveaNobelPrizeinany field. woman, andtheyoungestpersonever, towintheNobelPrizeinEconomic won theEconomicsNobelPrizewhileatMIT. Dufloisjustthesecond Duflo andBanerjeearethesixthseventhfacultymemberstohave better understandingofhowtheylivetheirlives,fromthegroundup.” “contribute toimprovingthelivesofpoor, hereandnow[and]…builda any oneofus,” Duflosummarizedtheirambitiousagendaastwofold: of Banerjee,Kremer, herselfand“amovementthatismuchbroaderthan of Alfred Nobel’s death. Addressing theceremony’s attendeesonbehalf ceremony heldannuallyattheStockholm Concert Hallontheanniversary Last December, Banerjee,Duflo,andKremeracceptedtheirawardatthe in 2003. ambitious foundingofMIT’s Abdul LatifJameelPoverty Action Lab(J-PAL) a flourishingneweraofglobalpovertyresearch,thanks inparttothe and Dufloasagraduatestudentin1995,thisapproachhasushered at MIT, whereBanerjeeandKremerarrivedasfacultymembersin1993 them workwellorpoorly. Initially realizedthroughsmall-scaleprojects improve ourunderstandingoftheunderlyingeconomicforcesthatmake environments, makingitpossibletomoreeffectivelyevaluatepoliciesand trials (RCTs) tostudypeopleintheireveryday economics byusingrandomizedcontrolled Duflo havetransformedthefieldofdevelopment Along withtheirmany collaborators,Banerjeeand fight globalpoverty.” obtaining reliableanswersaboutthebestwaysto the prizecommitteefortheir“newapproachto Duflo, Banerjee,andKremerwerelaudedby along withMichaelKremerofHarvardUniversity. Sciences inMemoryof Alfred Nobelfor2019, awarded theSveriges Riksbank PrizeinEconomic Professors Abhijit BanerjeeandEstherDuflowere

econometrics. econometrics. macroeconomics andindustrialorganization research contributionstotherespectivefieldsofbehavioral two co-recipients:ChenLianandMertDemirer, fortheir and teaching. The 2020SolowPrizewasawardedto : theinterdependenceofexcellence inresearch reflect BobSolow’s embodimentofacore MIT Economics alumni andfacultytocelebrategraduatestudentswho Excellence in Teaching andResearch wasestablishedby spring. The Robert M.SolowPrizeforGraduateStudent (TAs), andsomeoftheverybestarealsocelebratedeach and communicationskillsthroughteachingassistantships to thefaculty. MITgraduatestudentshonetheirteaching outstanding advisor. Teaching excellence isnotconfined Economics Association’s (GEA’s) outstandingteacherand outstanding teacheroftheyear, andtheGraduate the UndergraduateEconomics Association’s (UEA’s) members eachyearforparticularrecognition,including Within thedepartment,studentsselectthreefaculty Opportunities Program(UROP). of MIT’s enormouslysuccessfulUndergraduateResearch for UndergraduateEducationandwasalsothefounder teaching excellence. MacVicarservedasMIT’s firstDean honor MargaretMacVicar’s lifeandherdevotion to mentors withaten-yearfellowship. These fellowships three tofiveofMIT’s bestundergraduateteachersand Faculty Fellows, aprogramthatannuallyrecognizes David Autor, andNancy Rose areMargaretMacVicar their importantcontributionsasteachers.Josh Angrist, Several currentfacultymembershavebeenrecognizedfor students tothestudyofeconomics. edge ofeconomicknowledgeanddrawnewgenerations and deliveryofcoursesthatcommunicatethecutting textbooks currentfacultyhavewrittentothedevelopment The departmentcontinuesthattraditiontoday, fromthe the qualityofundergraduateeconomicseducationatMIT. textbook, contributions: forexample,Paul Samuelson’s legendary many facultymembershavemadenotablepedagogical undergraduate andgraduatelevels. Throughout itshistory, economics educationofthehighestquality, atboththe breaking researchispairedwithafocusonproviding The department’s commitmenttoadvancingpath- in TeachingExcellence , was written in the 1940s to enhance Economics, waswritteninthe1940stoenhance textbooks thatareusedincollegesand universitiesaroundthe Many facultymembershavewritten undergraduateandgraduate soundness ofthisphilosophy andtheexcellence ofthe program. and preparingthemforadvanced studydemonstratesthe department’s successinattractingexceptional undergraduates latest economicmethodsandfindings intotheirelectives. The undergraduate courses,andfaculty atalllevelsincorporatethe US collegeoruniversity. Seniorprofessorsteachintroductory a rigorousandcomprehensiveprogramunlike thatofany other of theMITundergraduatestudentbodyallowfacultytooffer outstanding undergraduatetraining. The uniqueanalyticalskills The EconomicsDepartmentatMIThasalongtraditionof Undergraduate Economics for workers inthe long-termcaresector. The resultsofthiswork area- andtime-specificmeasuresofimmigrantflows,overall states. They alsousedthe American Community Surveytocreate these regulationsarenotdocumentedinasystematicwayacross of regulationsonlong-termcareworkers—no easyfeat,giventhat and year, and Amy andStephanieputtogetheradetaileddatabase to createacomprehensivemeasureofimmigrationflowsbycity our long-termcareworkforce. The projectusedpublicmicrodata nation’s elders,giventhatimmigrantsmake upalargeshareof project alsostudiedtheimpactofimmigrationoncareforour regulations atnursinghomesthatvarybystateandyear. The the minimumwageforhomecareworkers tominimumstaffing market regulations applytothissector, frompartialapplicationof to seniorswhoareinlong-termcare. A widevarietyoflabor the natureoflabormarket impactthequalityofcaredelivered Professor JonathanGruberonaprojectevaluatinghowchangesin MIT students Amy Kim(’21)andStephanieLi (’20)worked with research materials. programs, checkingmathematicalcalculations,andgathering as collectingandanalyzingeconomicdata,writingcomputer with facultymembersoutsideofclass. They performtasks such to participateinongoingresearchthedepartmentand supplements coursework,anditsprojectsallowundergraduates economics tobearonquestionsofeconomicimportance.UROP and graduatestudentstobringthetechnicalskillsofmodern faculty members.UROP studentsworkwithfacultymembers (UROP), whichfostersclosetiesbetweenundergraduatesand is MIT’s UndergraduateResearch OpportunitiesProgram opportunities tohonetheirresearchskills.Onesuchopportunity Undergraduate studentstake advantageofnumerous Undergraduate Research meet meet

Andrew Komo andMax Porlein 2018-2019UROPProfessor Nikhil with Agarwal participants of endogenousgrowth. ’s MostlyHarmless from itsneoclassical paradigmstothemostrecent models students onajourney throughthetheoryofeconomic growth textbook, the undergraduateandgraduate levels.Daron Acemoglu’s Policy, andMichael Whinston’s atboth MicroeconomicTheory Macroeconomics, JonathanGruber’s text, PublicFinanceand Currently, studentsaretaught fromOlivierBlanchard’s textbook, introduced modernmacroeconomicanalysistoundergraduates. intermediate macroeconomicstextbook,Macroeconomics, undergraduates. RudigerDornbuschandStanleyFischer’s economics textinanintroductorycourseforMIT world. Paul Samuelson firstdevelopedhispioneering the program. and ultimatelypresenteditsfindingstotheNGOthatfacilitates Kiara wasintegralincompilingandanalyzingdatafromthetrial, training programanditsimpactsonparticipants’lifeoutcomes. Atkin torunarandomizedcontrolledtrialdesignedevaluatethe pursue publicserviceinNairobioverIAP, worked withProfessor companies. Kiara,whopreviouslyreceivedaPKG fellowshipto skills, andprovidesdigitalworkopportunitieswithlargetechnology with transferabletraininginbasiccomputeranddigitalliteracy Kenya. The programequipsworkers inunderservedcommunities research theimpactofadigitalskillstraininginitiativeinNairobi, Mechanical Engineering,worked withProfessorDavid Atkin to Kiara Wahnschafft (’21),whoisstudyingEconomicsand the long-termcareworkforce. suggest thatrestrictionsonimmigrationwouldsignificantlyreduce Introduction toModernEconomic Growth,takes graduate

9 Economics at MIT 10 Economics at MIT co-taught byDavid Atkin, EstherDuflo,and Frank Schilbach, the Humanities, Arts, andSocialSciences(CI-H). The course, recently redesigned asacommunications-intensive subjectin communication skills,14.73, The Challengeof World , was developing countries. As partofanMIT-wide initiativeon market design,andtheeffectsofglobalization andtradeon and economics,financialmarkets andthemacroeconomy, Recent innovationsincludecoursesinnetworks, psychology insights fromnewresearchintotheundergraduateprogram. curriculum. Newcoursesareconstantlybeingdevelopedtobring Our facultyiscommittedtoinnovationintheundergraduate graduate studyinarangeofdisciplines. forces thatshapemany newbusinesses,andpreparingthemfor tools tounderstandthecomplexinteractionsandequilibrium get afirmfoundationineconomictheory, providingthem with bybothnew-andold-economy firms.Studentsalso sought after with acombinationofbigdataskillsthatisunusualandhighly econometric andmachinelearningmethods,producingstudents offering providesextensivetrainingindatascience,includingboth of ElectricalEngineeringandComputer Science(Course 6). This and DataScience,isofferedincollaborationwiththedepartment The thirdundergraduatemajor, Computer Science,Economics (Course 18). twelve requiredmajor classesinthemathematics department mathematical economicsdegreewilltake atleastfouroftheir training ourdepartmenthastooffer, studentspursuingthe economic modeling. Alongside themostrigorousundergraduate and mathematicalsubjects,includingaclasson introductory classes,themajor focusesintensivelyon technical topics inmicroeconomicsandmacroeconomics.Following these introductory sequencethatexplorestheoreticalandapplied mathematical economicsmajors startwithatwo-semester graduate studyineconomics.Like traditionaleconomicsmajors, Economics isdesignedtopreparestudentsinterestedinpursuing The departmentalsoofferstwoothermajors. Mathematical courses tobetaughtatahighlevel. mathematics masteryamongundergraduatesallowseconomics ,publicandothers. The levelof industrial organization,internationaleconomics,labor economic development,theory, healtheconomics, follows. Majors haveachoiceofadvancedcoursesspanning microeconomics, macroeconomics,statistics,andeconometrics in microeconomicsandmacroeconomics. Additional trainingin introductory sequencethatexplorestheoreticalandappliedtopics The traditionaleconomicsmajor beginswithatwo-semester MITx openonlinecourse. development coursesandistheprimarytextassignedfortheir Esther Duflo’s Poor Economicsgrewoutoftheirpopulareconomic for itsintegrationoftheoryandpractice. Abhijit Banerjeeand Econometrics: An Empiricist’s Companion hasbeenwidelypraised UEA social event UEA social fellow studentsinachallenging intellectual environment. foundation ineconomics,andan opportunitytomeetfacultyand acquire essentialskillsforawide varietyofjobs,anexcellent Whatever theirdestinations,undergraduate economicsmajors has strengthenedthisconnection. remains fairlyconstant.Growinguseofformaleconomicsinlaw study. The numberofpost-graduateschoosingtostudylaw seeking outbusinessandpublicpolicyschoolsforpost-graduate government, consulting,andnon-profitorganizationsbefore department’s graduateschoosetogainexperience inbusiness, undergraduate economicsprogram. Approximately halfofthe or finance,oneofthehighestyieldsPhDcandidatesforany undergraduate majors enteragraduateprogramineconomics finance, consulting,andlaw. About20percentofMITeconomics distinguished careersinacademia,globalbusiness,government, Undergraduate economicsmajors goontograduate workand the informalinteractionsthatUEAprovides. current topicsineconomicpolicy. Studentsandfacultyalsoenjoy economics majors toaddresssuchissuesas career planningand with faculty. Sponsoredbythefaculty, theUEAisrunbyandfor informal forumforstudentstomeetandexplorevarioustopics The UndergraduateEconomics Association (UEA)providesan the programandhoningtheirwritingpresentationskills. exploiting theknowledgeandtoolstheyhavegainedthroughout carry outaseriesofincreasinglyindependentresearchprojects, capstone experienceineachofourmajors. Students inthisclass fall 2019. Another communications-intensivecourse,14.33, isa was developedbyBenOlken andwastaughtforthefirsttimein faculty. 14.009, Economics andSociety’s Toughest Problems, through exploratorylecturesfromavarietyofMITeconomics introduced acoursedesignedtoexposefreshmeneconomics studying specializedtopicsineconomics. The departmenthasalso allows freshmenandsophomorestoimmediatelyengagein in theEconomicsDepartment. macroeconomics in2019.InJuly2020,ChenjoinedtheUniversityofCalifornia, Berkeley asanassistantprofessor Robert M.Solow Prize,Chenwasawardedtheinaugural Alfred P. SloanFoundation /NBERfellowshipinbehavioral of theempiricalviolationspermanentincomehypothesis. InadditiontoreceivingtheDepartment’s 2020 behavioral bias,imperfectperceptionofwealth,canprovideacomplementtoliquidityconstraintsasanexplanation biases relatedtonarrowbracketing andmentalaccounting.Finally, Chenhasinvestigated howararelystudied shocks andpolicies.Inotherwork,Chenusesconventional economictoolstosynthesizecommonbehavioral He hasalsoexaminedhowcommonbehavioralbiasescanhelpunderstanddecision-makers’ responsestomacro about eachother’s behavior, andhowsuchdifficultyleadstofrictionalaggregateresponsesmacroshocks. range oftopics.Specifically, Chenhasstudiedthewaysinwhichdecision-makers havedifficultyformingexpectations defined tonestbothinformationalfrictionsandvariousdeparturesfromfullrationality. Hisportfoliospansawide Chen Lian’s researchfocusesontheintersectionbetweenmacroeconomicsandbehavioraleconomics,broadly Madeline McKelway (PhD’20). strategy, andeconometrictools.ExamplesofrecentprojectsincludethosebygraduatesChenLian(PhD’20) theoretical projectsandinempiricalfields,wherelearning-by-doingtransfersinformationaboutdatasets,research ofresearch. Graduate studentsworkinintensecollaborationwithfacultytolearnthecraft This occursbothin Graduate Research economists ate-commerceandsocialmediacompanies. the market economy, rangingfromcorporateexecutives andportfoliomanagerstoeconomicconsultants,chief the Federal Reserve, andthe Treasury Department. They arealsofoundamongthemostinfluentialpositionsin ,theInternationalMonetaryFund, theNationalEconomicCouncil, theCouncil ofEconomic Advisers, policy. They workoncongressionalstaffsandgovernmentadvisorycouncils,withorganizationssuchasthe Graduates ofthePhDprogramteachinleadingeconomicsdepartments,businessschools,andschoolspublic economics, labormonetaryorganizationalpoliticaleconomy, andpublicfinance. economic theory, econometrics,economicdevelopment,financialeconomics,industrialorganization,international expected tocompletefourfieldsineconomics(twomajor andtwominor). Thefieldoptionsincludeadvanced students take requiredcoursesinmicroeconomictheory, macroeconomics,andeconometrics.Studentsarealso The department’s highlyregardeddoctoralprogramenrollstwentytotwenty-fourstudentseachyear. Doctoral Graduate Economics

Photo: J-PALPhoto: Poverty Action Lab(J-PAL). LatifJameeland theAbdul the DepartmentofEconomics jointlyby program wascreated Policy.and Development The Program inData,Economics, enrolled inMIT’s MicroMasters inauguralclassofstudents The

11 Economics at MIT 12 Economics at MIT department headGlennEllison. Nancy Roseandincoming outgoingdepartmenthead with celebratingvirtually graduates Some ofour2020PhD Economics DepartmentatDartmouthCollege. Stanford KingCenter onGlobalDevelopmentinJuly2020.In2021,shewillbecome anassistantprofessorinthe families thatwomenshouldstayintheworkplacethanenterit.Madelinestartedapostdoctoralfellowshipat isadelicateendeavor. Madelinefindsnoeffectsonlong-runemployment;itmaybehardertopersuade interventions wasnohigher, andinsomecomparisonslower, thanundereitheralone,suggestinginterveninginthe suggest akey channel wasgivingwomenconfidencetopersuadetheirfamilies.Short-runemploymentunderboth will befullytransmittedtofamilies. The psychosocialinterventionalonealsoraisedshort-runemployment,anddata families canbepersuaded,butthatsimplyarmingwomenwithpersuasivemessagesdoesnotmeanthe promotion. The promotiontreatmentaloneincreasedwomen’s employmentintheshort-run;thissuggeststhat a videopromotingnewjobforwomen,andcross-randomizedwhetherwomen’s familymembersalsosaw the 2020 semester. continuation ofthesecriticalgatherings. All fieldseminarsand lunchesaretakingplaceonlineforthefall During thetransitiontoremote learning inspring2020,mostfieldlunchespivotedtoavirtualformat for original researchpapers. collaboration withinthegraduatestudentcommunity, and culminatesinstudentswritingandpresenting Second yearstudentsalsotake ayear-longcoursethatdiscussestheresearch process, fosterssupportand First andsecondyearstudentswhoarecarryingoutresearch alsowelcometoparticipateintheseworkshops. Many studentspresenttheirresearchinmultipleworkshops andtherebyobtainarangeoffacultystudentinputs. a presentationinatleastonefieldlunchduringthecourseof year. students whohavecompletedtheircourseworkarerequiredtoattend atleastoneworkshop eachweekandtomake lunches alsohavetheimportantbenefitofsettingnear-term,but manageable,deadlinesfordissertationprogress. All sounding boardfornewresearchtopics.Sincemostthesiswriters volunteertopresentatalkeachsemester, thefield Many pastgraduatesofMIT’s PhDprogramreportthatfield luncheswereinvaluablea inprovidingthemwith Faculty membersviewattendanceattheselunchesasbothaprivilegeandsacreddepartmentalresponsibility. for studentstoexploreresearchtopicsandgainpeerfeedbackwithouttheexpectationofpresentingfinishedwork. ideas forfuturework,tonearly-completedissertationprojects. The informalityofthesemeetingsmakes itpossible ideas. The presentationscanrangefromveryearlystageresearch,hardlymorethanaliteraturereviewandfew a setofinformalweekly“fieldlunches”atwhichstudentswhohavetransitionedtothesis-writingtestnewresearch In contrasttothemoreformalnatureofseminars,akey componentofthedissertationadvisingsystematMITis seminars offeraforumforstudentstolearnaboutthelatestresearchintheirfieldsfrom invited speakers. Graduate studyatMITconsistsofmuchmorethantakingcourses.Regularly scheduleddepartmentworkshops and Workshops &Seminars intervention to raise self-confidence prior to seeing intervention toraiseself-confidencepriorseeing women inruralIndiawereofferedapsychosocial lack self-confidence.Sherandomizedwhether suggested byMadeline’s researchisthatwomen why dowomennotpersuadethem?Oneanswer want toworkandtheirhusbandscanbepersuaded, persuaded thattheirwivesshouldwork.Ifwomen want toworkfromdoingso,husbandscanalsobe preventswomenwho from theirhusbandsoften the world.Research suggeststhatwhileopposition labor forceparticipationrateisamongthelowestin employment ofwomeninIndia,wherethefemale Madeline McKelway studiestheempowermentand

research thatcutsacrossfields. engaginginfrontier collaborative, often broad fieldsofstudy, MITfacultyareintensely much researchactivityisorganizedaround to newstatisticalandanalytictools. While markets andeconomicinstitutions,orlead new conceptualframeworks forstudying and interactionofeconomicagents,establish research mayshednewlightonthebehavior effectiveness ofalternativepolicies. Theoretical theoretical modelsofbehavior, orevaluatethe economicregularities,test may identify real worldproblems.Empiricalresearch applies economictoolstounderstand Most MITfacultyengageinresearchthat Fields ofStudy Jean Tirole, an internationally acclaimedscholar whohas ongoing visiting facultyarrangementwithNobel Prizewinner The MITEconomicsDepartment isfortunatetohavean and theroleofinformationinmarkets. 2021 byIanBall,arecentPhDwho works oninformation design breakdowns inbargaining. The departmentwillbejoinedinfall incomplete informationandisknown forhisworkondelaysand among othertopics.Muhamet Yildiz isanexpertongamesof games, bargaining,andapplicationstopoliticaleconomy, and antitrusteconomics. Alex Wolitzky doesworkonrepeated modeling. Michael Whinston isaleaderincontracttheory works inbothmechanismdesign andgeneralequilibrium fundamental contributionstocontracttheoryandcurrently on psychologyandeconomics.Robert Townsend hasmade choice. DrazenPrelecspecializesinresearchandteaching of contexts,mostnotablymedicalmarkets andpublicschool Pathak studiestheeconomics ofmatchinginawidevariety and workinmacroeconomicspoliticaleconomy. Parag including workonglobalgames,robustmechanismdesign, work spansabroadrangeofpureandappliedtheorytopics activities, especiallyrelationalcontracts.StephenMorris’s of organizationsandworks mostcloselyonorganized . Robert Gibbonsfocusesontheeconomics evolution, behavioraleconomics,experimentaland topics, withrecentworkonrepeatedgames,learningand of gametheoryandisinterestedinabroadrange organization. DrewFudenberg hashelpedshapethefield his workbothonlearningingamesandtheoreticalindustrial research projectsisextraordinary. GlennEllisonisknownfor microeconomics andmacroeconomics. The rangeofcurrent MIT theoristscarryoutresearchthatbearsonboth significant interestsineconomictheory. including Alessandro BonattiandGonzaloCisternas,have Iván Werning. Inaddition,many MITSloanfacultymembers, Ricardo Caballero, Arnaud Costinot, Robert Gibbons,and Banerjee, George-Marios Angeletos,Abhijit Daron Acemoglu, Alex Wolitzky, andMuhamet Yildiz. OtherMITtheoristsinclude Pathak, DrazenPrelec,Robert Townsend, Michael Whinston, includes GlennEllison,DrewFudenberg, StephenMorris,Parag graduate electives,orattheundergraduatelevel. This group either aspartofthecorecurriculumforgraduatestudents, Many facultymembersteachcoursesineconomictheory, applied fields. have seriousresearchandteachinginterestsinoneormore Most MITfacultymemberswhoworkineconomictheoryalso research, andthosewhoareinterestedinframingpublicpolicy. developing newtheoreticalinsights,thoseperformingempirical close collaborationbetweenfacultymembersandstudents strong commitmenttoeconomictheoryisfacilitatedbya of thinkingaboutandmodelingeconomicphenomena.MIT’s advances ineconomicscienceareusuallybasedonnewways policy advice,isrootedineconomictheory. Substantial Economic research,whetherabstractorapplied,andeconomic Economic Theory

13 Economics at MIT 14 Economics at MIT Muhamet Yildiz Drazen Prelec MorrisSteve Glenn Ellison Parag Pathak Alexander Wolitzky Drew Fudenberg presentation skills)fromleadingscholars. excellent opportunitiesforgraduatestudentstolearnfrontiermethods(andexcellent which hostoutsidespeakers andhavemovedonlineforthefall2020semester, provide developments arepresentedatweeklyMIT-Harvard theoryseminars. These seminars, support forstudentswritingtheirdissertationsineconomictheory. Currentresearch discuss currenttopicsorpresentpreliminaryresearchideas. These meetingsprovide Informal discussionstake placeatweeklytheoryluncheswheregraduatestudents may varieswiththeinstructors. these coursesoften faculty teachingtheadvancedtheorycoursesvaryfromyeartoyear, andthecontentof specialized topicssuchasbargainingtheory, learning,networks, ordecisiontheory. The , andmarket design.Othercoursescoverrecentadvanceswithinsome dissertations inthisfield,selectaminimumoftwoadvancedcoursesongametheory, Graduate studentswhoplantospecializeineconomictheory, andwhoexpecttowrite to modernmicroeconomictheory. of insurancemarkets. Together, thesefourcoursesprovideacomprehensive introduction on questionsofcontractdesign,asymmetricinformation,moralhazard,andtheworking Finally, thefourthcoursefocusesoninformationeconomicsandcontracttheory. Ittouches third courseexaminesdecisiontheoryandbehavioralmodelsofconsumerbehavior. between firmsinanindustryandagentsmany economicenvironments. The theory andprovidesthekey equilibriumnotionsthatareneededtoanalyzeinteractions consumers andproducers,generalequilibriumanalysis. The secondfocusesongame microeconomic theory. The firstofthesecoursesemphasizespricetheory, thetheoryof The first-yeargraduateprogramincludesfourhalf-semestercorecoursesin foundation fortheirgraduatework. studies ineconomicsreportthattheirundergraduatetheorycoursesprovidedafirm only atthegraduatelevel.Many formerMITundergraduateswhohavegoneontograduate theory, market design,andtheeconomicsofnetworks—that eventopuniversitiesoffer sophisticated undergraduatetreatmentsofsubjects—includingincentives,advancedgame discuss applicationsinawiderangeofeconomicsettings.Moreadvancedcoursesoffer offerings arecoursesongametheoryandbehavioraleconomicsthatdevelop in follow-upcoursesadvancedtheory. Among thepopularundergraduatetheory microeconomics courseatmostotherschools. This enablesundergraduatestoenroll course “PrinciplesofMicroeconomics”istaughtatthelevelintermediate undergraduate economictheoryofferingsareexceptionally rigorous.MIT’s introductory and becauseeconomictheoryreliesonformalismmathematicalanalysis,MIT’s MIT. Because MITundergraduateshaveagoodcommandofmathematicalmethods Economic theoryispartofthebasicundergraduatemicroeconomicssequenceat students inallstagesofthePhDprogram. summer courseonspecializedtopicsineconomictheorythatisverypopularwithgraduate worked ingametheory, industrialorganization,andregulation. Tirole regularlyteachesa monetary, fiscal, andmacroprudentialstabilization policies,as of policyissuesin macroaswellpublicfinance, including and monetaryeconomics. Iván Werning’s workspansarange the designoffinancialcontracts, institutionsandmarkets of financeandmacroeconomics. Robert Townsend works on heterogeneous beliefs,andother topicsattheintersection global capitalflows. AlpSimsekanalyzesfinancialmarkets, and finance,recentlyfocusingon assetmarket crises and Caballero exploresissuesattheintersectionofmacroeconomics identification andestimationusingregionaldata.Ricardo Beraja works onbusinesscycles,withafocusempirical the contextofbusinesscyclesandfinancialcrises.Martin expectations andthepotentialofcoordinationfailureswithin of labormarkets. Marios Angeletos studiestheformationof the developmentofpoliticalinstitutions,andworkings empirical researchonthedeterminantsofeconomicgrowth, and seminars.Daron Acemoglu carriesouttheoreticaland research, teaching,advising,studentresearchworkshops Many facultymembersparticipateactivelyinmacroeconomic prepare studentstowritedissertationsinmacroeconomics. while advancedfieldcoursescoverleadingedgeresearchand All PhDstudentscompletethegraduatemacroeconomicscore, departments. comparable tothegraduateofferingsatmany economics The advancedundergraduatemacroeconomicscourseis which studentsassessandparticipateincurrentresearch. range fromtheintroductoryleveltoadvancedseminarsin graduate macrofieldcourses. Theundergraduatecourses courses, aswellayear-longgraduatemacrocoreandtwo The departmentoffersthreeundergraduatemacroeconomics and representedbyourfaculty. international finance,whichareemphasizedbyourprogram international economics,bothintradeand synergies betweenmacroeconomicsandotherfields,especially that areatthecenterofmacroeconomics. There areimportant motivatedbythetypeofquestions theoretical workareoften dissertation research.Conversely, studentsinterestedin research topicsandinprovidinganalyticaltoolsforpotential course workineconomictheoryisinvaluable inidentifying findthat macroeconomics andinternationaleconomicsoften contract theory. Studentswhoplantocarryoutresearchin finance, andfrommicroeconomictheory, gametheory, and but alsofromempiricalworkinlaboreconomicsandpublic research inmacroeconomicsdrawsnotonlyfromeconometrics with othercorefieldsinbothquestionsandmethods.Empirical Macroeconomics isadiversefieldthatoverlapsintellectually related policyquestions,suchasfiscalandmonetarypolicy. include economicgrowth,businesscycles,financialcrises,and activity andwelfareattheaggregatelevel,withtopicsthat Macroeconomics studiestheforcesthatshapeeconomic Macroeconomics Corporation’s Economics Visiting Committee. in Economics.Currently, Alex is amemberoftheMIT and Economics,completedhisBachelorofScience Jerome andDorothy Lemelson ProfessorofManagement the lateDeanofSloanSchoolManagementand economics thesisunderthesupervisionofLester Thurow, tofinishhisundergraduate He returnedtoMITsoonafter his firststartup,whichwasacquiredattheendof2000. summer associatepositionatCitigroupNew York toco-found MIT. In1999hetooktheunconventional pathofleavinghis Alex beganhiscareerasanentrepreneurwhilestudyingat curated programwithMITdesignX. be thenewhometoDesignSalonsatEchelon,ajointly Boston’s SeaportDistrict. This innovativespacewillalso one ofNewEngland’s largestrealestatedevelopments,in MIT’s backyard,Cottonwood iscompletingEchelonSeaport Cottonwood’s mixed useandresidentialdevelopments.In the EchelonLife™curated“live,workandplay”conceptfor estate transactionsinprimaryUSmarkets. Healsopioneered and investing in someofthelargestandmostcomplexreal Metropolis thirdtower, Cottonwood isknownforfinancing construction fundingofDowntownLos Angeles’s Greenland Island re-developmentintheSanFrancisco Bay, tothe approaching US$3billion.From financingofthe Treasure firm’s footprintnationallywithassetsundermanagement Since foundingCottonwood in2012, Alex hasexpandedhis Taiwan StockExchange. Shin Kong Textile Company Limited,apubliccompany onthe Stock Exchange of Thailand, andanindependentdirectorof Group PublicCompany Limited,abankinggrouplistedonthe New York. Heisalsothe Vice Chairmanof TISCO Financial headquartered inLos Angeles withoffices inBostonand of Cottonwood Group,aprivate equityrealestatefirm Alexander Shing(SB’00)istheChiefExecutive Officer Where aretheynow? Economics students: Alexander Shing ™ ,

15 Economics at MIT 16 Economics at MIT Sally Hudson was alsoaCastle KrobFellow. University andearnedherPhDineconomicsatMIT, whereshe Nebraska. ShestudiedeconomicsandmathatStanford Hudson wasborninIowaandgrewup Arizona and closely competingcandidates. who holdsimilarpreferencesbuthavedifferentrankingsof choice votingsystemislesslikely todilutethevotesofcitizens systems make tradeoffs amongdesirableproperties,aranked- economist Kenneth Arrows’ Impossibility Theorem, allvoting program in Virginia. Though, asfamouslydemonstratedby was carryinglegislationtocreatearanked-choice votingpilot One ofHudson’s firstprojectsasafreshmanstatelegislator an economist.” laboratories ofdemocracy, sothey’re alsothelaboratoriesof same problemandthenlearnfromtheresults.Statesare what economistsdoisstudyhowdifferentstatestacklethe to beamoreeffectiveadvocateforpublicpolicy. Somuchof gearsanduseadifferentpartof my toolkit was timetoshift there issolittlepatienceorappetiteforrigorousevidence,it a pointwhereIfeltlike, inourcurrentpoliticalclimatewhere fulfilling work,andIloveteaching,” Hudsonsaid.“ButIgotto a longtime,Ithoughtthatresearchwasgoingtobereally when sheheardthecalltoserviceinstatelegislature.“For Hudson wasonlyinherthirdyearasaUVA facultymember evaluating andimprovingpublicservices. extensively withJ-PAL topromotetheuseofexperimentsin member Amanda Pallais (PhD’11).Shehasalsoworked members Josh Angrist andDavid Autor andHarvardfaculty randomized evaluationsincollaborationwithMITfaculty School EffectivenessandInequalityInitiative,conducting experimental methods.Sheworks onprojectsthroughMIT’s experimental findingsinlaboreconomicswithquasi- Hudson’s PhDthesisanalyzedattemptstoreplicate Thompson Buffett Foundation. and consultsforleadingphilanthropicgroupslike theSusan public andnon-profitagenciesacross Virginiaandthecountry from workforcedevelopmenttostudentdebt.Sheadvises the mostpressingdomesticeconomicchallengesofday, Virginia, Hudsonteacheseconometricsandstudiessomeof of Delegates. As anassistantprofessor attheUniversityof legislator whorepresentsCharlottesvilleinthe Virginia House Sally Hudson(PhD’16)isascholar, educator, andstate Where aretheynow? Economics students: Daron Acemoglu Lucas, LawrenceSchmidt,and Antoinette Schoar. Greenwald, LeonidKogan, EbenLazarus, Andrew Lo,Deborah interact withstudents,including MaryamFarboodi, Daniel Finance groupatSloanroutinely attendmacroeventsand Rigobon workoninternationalmacro. Many members ofthe focus onhouseholdbehavior. KristinForbes andRoberto influence themacroeconomy. Jonathan Parker hasan empirical on howcoordination,uncertaintyandpolicycommunication and optimaltradepolicy. StephenMorrisisatheoristworking is atradeeconomiststudyingthewelfaregainsfrom participate inthebroadermacrocommunity. Arnaud Costinot members inthedepartmentandMITSloanschool In additiontothiscoregroup,anumberofotherfaculty on microeconomicdata. otherwise missedinstandardeconometricproceduresthatrely equilibrium effectsofavarietymacroeconomicshocks, works onneweconometricmethodstorecoverthegeneral The departmentwillbejoinedin2021byChristian Wolf, who well asunemploymentinsuranceandcapitaltaxation. Alp Simsek Martin Beraja Iván Werning Ricardo Caballero George-Marios Angeletos

current belief. in thefutureandwillbeabletosetinterestratesreflectingits Fed’s belief. Thus, theFed believesitwillbelessconstrained the Fed thinks themarket willlearnfromdataandcometothe more closelyalignedwiththemarket’s currentbelief. Conversely, the market thinks theFed willsetfutureinterestratesthatare will learnfromdataandcometothemarket’s belief. Hence, largely reflecttheircurrentbelief. Themarket thinks the Fed distant horizons,eachagentexpectsfutureinterestratesto disagreements todeclineovertime.Inparticular, forsufficiently rates. Sinceagentslearnfromthesamedata,theyexpect the Fed’s andthemarket’s predictionsforfutureinterest These disagreementsnaturallyexplainthedifferencesbetween and themarket’s (morepessimistic)belief. between thelevelsimpliedbyitsown(moreoptimistic)belief the Fed isoptimistic,itsetsaninterestratethatsomewhere rateinordertostabilizecurrentoutput.Even though demand. Knowingthis,theFed isforcedtoset arelativelylow will exert downward pressure onassetpricesandaggregate hike asamistake. The perceptionof“toohigh”interestrates not sharetheFed’s optimism, itwillperceivetheinterestrate interest ratetostabilizecurrentoutput.Sincethemarket does Consider, forexample,anoptimisticFed thatwantstohike the optimal monetarypolicy. future interestrates.Moreover, thesedisagreementsshapethe together withlearning,translateintodisagreementsabout In thiscontext,theyshowthatdisagreementsaboutdemand, aggregate demandandlearnfromdata,butnoteachother. the market andtheFed havedifferentopinionsaboutfuture Ricardo Caballero and Alp Simsekproposeamodelinwhich In recentwork,“MonetaryPolicy withOpinionatedMarkets,” a “mistake.” and theFed thinktheotherismaking areopinionatedandoften the Fed announcestheratesitplanstoset.Rather, themarket information, asthemarket expectsadifferentinterestrateafter Moreover, thesegapscannotbeattributedtotheFed’s superior futures market orfromsurveysofmajor market participants). the financialmarket’s prediction(measuredeitherfromthe median Fed exhibitslargedifferencesfrom predictionoften the FOMCmembers’predictionsforfuturepolicyrates. The Four timesayeartheFed releasesits“dots”curve,reflecting Faculty Research in fall2019. Junior Professor emeritusBobSolow Institute faculty meetwith

Rebecca BlankRebecca Where aretheynow? Economics students: direction ofHank Farber. University ofMinnesota,andearned herPhDunderthe completingherBSatthe She arrivedatMITafter Academy of Arts and Sciences,andnumerousawards. a numberofhonorarysocieties including the American including multiplehonorarydoctoral degrees,electionto Blank hasreceivednumerousforms ofrecognition, development. and nurturingentrepreneurshipdrivingeconomic position asagloballeaderininnovationandresearch, for achangingeconomy, maintainingtheuniversity’s improving educationalopportunitiestopreparestudents hand inchallengingtimesbyfocusingonexpandingand the Universityof Wisconsin—Madison withasteady undergraduate publicpolicymajor. Shehasalsoprovided included interdisciplinarygraduateprogramsandan Policy attheUniversity ofMichiganherinnovations As DeanoftheGeraldR.Ford SchoolofPublic Blank hasbeenaleaderinacademicadministration. Department ofCommerce intheObama Administration. Commerce, and Acting SecretaryofCommerce inthe Secretary forEconomic Affairs, DeputySecretaryof in theClinton Administration. ShelaterservedasUnder Administration andreturnedtotheCEAasaMember Economic Advisers duringtheGeorgeH.W. Bush She wasaSeniorStaffEconomistinthe Council of Blank alsohasadistinguishedcareerinpublicservice. the economicsofpovertyandwelfareprograms. Michigan, whereshewashighlyregardedforherworkon at Princeton,Northwestern, andtheUniversityof remarkable career. Shebeganasanacademiceconomist Blank’s roleat Wisconsin isthe latestchapterofa mission ofeducation,researchandoutreach. flagshipcampus,leadingitsthree-part 44,000-student of Wisconsin—Madison. Sheisthechiefexecutive ofthe Rebecca Blank (PhD ’83)isChancelloroftheUniversity

17 Economics at MIT v

18 Economics at MIT statistical significance. statistical significance. design, shouldbecarefullyevaluatedalongsidediscussionsof novelty oftheresults,andqualitydataresearch magnitude andprecisionoftheestimates,plausibility assessment ofstatisticalevidence.Otherfactors,suchasthe significance asamarker ofscientificdiscoveryandtheprimary Based ontheseresults, Abadie arguesagainsttheuseofstatistical becomes uninformative. informative. Incontrast,inthesamesettings,statisticalsignificance which makes non-significant resultssurprisingand,therefore,highly settings, theprobabilityofobtaininganon-significantresultissmall, any confidence inthefactualvalidityofnull hypothesis. Inthese datasets arelarge,andthererarelyreasonstohavemuchor true inempiricalcontextsthatarecommoneconomics,where while non-significancemaybehighlyinformative. Thisisparticularly carriesverylittleinformation, Abadie showsthatsignificanceoften argues thatthisviewofstatisticalinferenceisgreatlymisguided. Economics’’ (AmericanEconomicReview: Insights),AlbertoAbadie In arecentpublication,“StatisticalNon-SignificanceinEmpirical equating itwithafailuretorejectthenull. by reflects andhelpsperpetuatethebiasagainstnon-significance treatment ofinterestiscompletelyineffective.Statisticalparlance chosen torepresentabenchmarkscenariowherethepolicyor absence ofextremeorsurprisingoutcomesunderanullhypothesis informative. all,lackofstatisticalsignificancederivesfromthe After by thewidespreadperceptionthatnon-significantresultsarenon- corporate decisionmakers. This stateofaffairsisinpartmaintained journals, andtheyareroutinelydisregardedbygovernmental non-significant resultsarenotoriouslyhardtopublishinacademic Because oftheperceivedimportancestatisticalsignificance, affects many aspectsofourdailylives. determines whatappearsonourwebbrowsers;anditultimately is routinelyusedinlitigationasaformofscientificproof;itpartially and othermedicaltreatmentsareapprovedorrejectedbytheFDA;it has alargeinfluence,forexample,onwhetherCOVID-19 vaccines managerial choices,andmany otherformsofdecision-making.It Fisher,in the1920sbyR.A. greatlyimpactsgovernmentpolicies, Statistical significance,anotionofscientificdiscoveryproposed Faculty Research Graduate Hike Economics Association

David Atkin macroeconomics, oreconomic geography andurbaneconomics. or discusspreliminary researchininternationaltrade, international as informalinternational “tea” gatheringswhere studentscanpresent department also regularlyhostsjointseminarswith Harvardaswell and finance,incorporatingboth theoryandempiricalwork. The courses covertraditionalandmodern theoriesofinternationaltrade past andcurrenteventsintheworld economy. The twograduate emphasizes theuseofformaleconomic modelingtounderstand courses ininternationaleconomics. The undergraduatecourse The departmentoffersoneundergraduateandtwograduate in InternationalEconomics. and ClaudiaSteinwender, interactwithdepartmentstudentsandfaculty A numberofSloanfaculty, includingKristinForbes, Roberto Rigobon, studies fiscalandcurrencyunions,sovereigndebt,tradepolicy. of tradeandcapitalflowsbetween Thaivillages;andIván Werning flows andgloballiquidity; Rob Townsend investigates thedeterminants the macroeconomy; RicardoCaballero and Alp Simsekfocusoncapital Martin Beraja investigates theimplicationsofregionalheterogeneityfor the relationshipbetweentradeliberalizationandfinancialfrictions; migration, andinfrastructureinvestments; Abhijit Banerjeeisexploring Clare Balbonistudiestheconsequencesofclimatechangefortrade, rise asamanufacturingexporteronemploymentinUSlabormarkets; work, Daron Acemoglu andDavid Autor analyzetheimpactofChina’s department shareaninterestininternationaleconomics.Inrecent In additiontothiscoregroup,many facultymembersinthe comparative advantage. to theempiricalanalysisofwithin-countrymarket integrationand history, anddevelopment.Hehasmadefundamentalcontributions Donaldson’s researchspansthefieldsofinternationaltrade,economic welfare gainsfromtrade,andoptimalcapitalcontrols.Dave the centraldeterminantsoftradepatternsbetweennations, in internationaltradeandmacroeconomics,including and firmproductivity. Arnaud Costinot focusesontheoreticalissues effects oftradeliberalizationonnutrition,humancapitalinvestment, international tradeanddevelopment.Hisrecentresearchanalyzesthe David Atkin works oncoreempiricalquestionsattheintersectionof many otherareas, suchasdevelopment,labor, andmacroeconomics. Today, internationaleconomicsisavibrantfieldthatoverlapswith and ’s path-breakingworkineconomicgeography. Rudi Dornbusch’s influentialresearchininternationalmacroeconomics from thefoundationalworkofPaul Samuelsonininternationaltradeto activity andpolicy. IthasalonganddistinguishedtraditionatMIT, between locationsandtheimplicationstheseflowshaveforeconomic International economicsstudiestheflowsofgoods,capitalandpeople International Economics Arnaud Costinot Dave Donaldson

have close parallels in developed nations, and the set of MIT have closeparallels indevelopednations,andthe setofMIT Many ofthecoreissuesthatconfront developingeconomies governments canpreventfarmers fromusingfirestoclearland. climate changeshouldaffectinfrastructure choicesandhow economics, andtrade,seekingto understand,forexample,how at theintersectionofenvironmental economics, development trade hasaffectededucationalattainment. ClareBalboniworks benefit moreorlessfrominternationaltradethanothersandhow questions like whetherthepoorestlocationswithinpoorcountries works withbothstructuralmethods andexperiments,hasexplored Ricardo’s theoryofcomparativeadvantage. David Atkin, who and hasuseddataonsoilsuitabilityfordifferentcropstoexamine toestimatethegainsfromgreatereconomicintegration, Donaldson, forexample,hasusedtheexpansionofrailroadsin work attheintersectionoftradeandeconomicdevelopment.Dave economics andrelatedfields.DaveDonaldsonDavid Atkin Several facultymembersworkattheintersectionofdevelopment collected foralmosttwodecades. studying theseissuesusinglongitudinaldatafrom Thailand hehas financial issuesandtheroletheyplayindrivingdevelopment, Townsend isaneconomic theoristwithsubstantialinterestsin with povertyandpotentiallycontributetoitspersistence.Robert development toinvestigate howbehaviorallimitationsinteract worldwide. Frank Schilbachworks onbehavioraleconomicsand Jameel Poverty Action Lab,whichhelpsleadthistypeofresearch testing anddesigningpolicy, andtheyco-directMIT’s Abdul Latif All threearepioneersintheuseofrandomizedcontrolledtrials developing countriescanraisethetaxrevenuetopayforthem. policy, howtodesigneffectiveanti-povertystrategies,and focusing onthechallengesthatgovernanceraisesfordevelopment an expertonpublicsectoroperationsindevelopingcountries, of publicgoods,microfinance,andhealth.BenjaminOlken is development, includingeducation,livelihoodprograms,delivery the studyofpovertyalleviation,rangingwidelyacrossalltopicsin Esther Dufloisprimarilyinterestedinempiricalissuesthatarise issues involving credit,networks, educationandpoliticaleconomy. problems indevelopmenteconomics.Heiscurrentlyworkingon empirical economist,withastrongcommitmenttostudying the world. Abhijit Banerjeeisbothanappliedtheoristand The currentdevelopmenteconomicsfacultyisthestrongestin the 2019NobelPrize. the late1990s. This field-changing developmentwasrecognizedby economics usingrandomizedfieldexperimentsbeganatMITin perspectives ondevelopment. The transformationofdevelopment expertise thatspansbothmicroeconomicandmacroeconomic represented byanimpressivedevelopmenteconomicsgroupwith continuing throughtheworkofRichardEckaus,andtoday tradition, beginningduringPaul Rosenstein-Rodan’s tenure, impact. At MITthestudyofdevelopment economicshasalong economics, anditmaybetheproblemwithgreatesthuman Underdevelopment isoneofthemostprofoundproblemsin Development Economics Frank Schilbach Abhijit Banerjee policies fordevelopingnations. Monetary Fund, wheretheyhelpdesignandimplementeconomic organizations, suchasthe World BankandtheInternational Many alumniof thedepartmentworkatinternational interested indevelopmenteconomics. seminar withHarvardthatattractsfacultyfrombothinstitutions is administeredthroughMITx. The departmentalsohostsajoint MicroMasters inData,Economics,andDevelopmentPolicy, which undergraduate coursesoneconomicdevelopmentandtheonline students indevelopmenteconomics,aswellthreepopular The departmentoffersathree-semestercourseforgraduate education policyinanumberofdevelopingnations. of institutionsanddevelopment.Joshua Angrist hasstudied of issuesinvolving economicgrowthandthepoliticaleconomy development economics.Daron Acemoglu works onabroadset includes many membersinadditiontothegroupthatteaches faculty whohavestudiedeconomicpolicyindevelopingnations Robert TownsendRobert Esther Duflo

19 Economics at MIT 20 Economics at MIT preferences andeconomicpolicy. inpolitical lines andinducediscreteshifts realignments thatcleavealongracialandethnic adverse economicshocks tosharpideological political economy literaturethatconnects These resultsbroadlysupportanemerging to thedivisive2016USpresidentialelection. labor markets that,notably, commencesprior ideological realignmentintrade-exposedlocal though notdefinitiveevidenceofanoverall Autor andhisco-authorsultimatelyfindstrong Democrats. these gainscameattheexpenseofmoderate elect aliberalDemocrat.Inbothsetsofcountries, population becamemorelikely morelikely to exposed countrieswithamajority-minority likely toelecta GOP conservative,whiletrade- with amajority whitepopulationbecamemore Republican toCongress. Trade-exposed counties a relativeriseinthelikelihood ofelectinga polarization incampaigncontributions,and for theFox Newschannel,strongerideological impacted districts saw an increasing market share inothers.Specifically,rightward shifts trade- ideological polarizationinsomeareas,andpure electoral districtssimultaneouslyexhibitgrowing manufacturing, theyfindthattrade-exposed comparative advantageinlabor-intensive trade exposurestemmingfromChina’s rising expression andexploitingvariationinlocal Analyzing multiplemeasuresofpolitical US since2000. contributed torisingpoliticalpolarizationinthe increased foreigncompetitionfromChinahas whether theexposureoflocallabormarkets to Hanson (PhD’92),andKavehMajlesi examine Autor andco-authorsDavidDorn,Gordon Consequences ofRising Trade Exposure,” David “Importing Political Polarization? The Electoral in theAmericanEconomicReview in2020, at ahistorichigh.Inanarticlepublished The ideologicaldividein American politicsis US politics? of contributed tothepolarization Has risingimport Faculty Research

Poverty Action Lab(J-PAL) The MIT LatifJameel Abdul scaled up after beingevaluatedbyJ-PAL affiliatedresearchers. scaled upafter Asia, andSoutheast Asia. Over400millionpeoplehavebeenreachedbyprogramsthatwere Latin America andtheCaribbean, theMiddleEastandNorth Africa, North America, South Launched atMITin2003,J-PAL hasregionalcentersatpartneruniversitiesin Africa, Europe, Kala, ChristopherKnittel, Antoinette Schoar, and Tavneet Suri. Finkelstein, andFrank Schilbach,aswellMITSloanprofessorsJosephDoyle,Namrata professors intheMITEconomicsDepartmentincludeDavid Atkin, David Autor, Amy J-PAL isledbyMITprofessors Abhijit Banerjee,EstherDuflo,andBenjamin Olken. Affiliated deliver results. funding, technicalassistance,andembeddedstafftohelpshapeprogramspoliciesthat partners tocreateframeworks forscalingupeffectiveprograms. Thisincludesproviding evaluations totheirwork.J-PAL developscross-cuttingpolicyinsightsandworks with governments, NGOs,donors,andtheprivatesectorapplyevidencefromrandomized Policy engagement:J-PAL’s teamofpolicyexpertsconductanalysisandoutreachtohelp better producersandusersofscientificevidence. online courses,andin-persontrainingprogramsaroundtheworldthathelppeoplebecome evidence-informed policy. J-PAL createshigh-qualityresearchresources,university-levelopen of researcherswhoproduceevidence,policymakers anddonorswhouseit,advocatesof Capacity building: With afocusonlearningandinnovation,J-PAL works tobuildthecapacity crime prevention. impact evaluationsacrossadiverserangeoftopics,fromcleanwatertomicrofinance challenges. J-PAL’s affiliatedprofessorshaveconductedmorethan1,000randomized Investing inthisrigorous research isessentialtofindingsolutionstheworld’s greatest other contexts?” “Who washarmed?”“Why diditworkornotwork,andwhatlessonscanbeappliedto also “Howeffectivewasit?” “Were thereunintendedsideeffects?”“Whobenefited most?” This researchcananswernotonlyquestionslike “Was apolicyorprogrameffective?” but Innovative research:Randomizedevaluationstake ascientificapproachtopovertyalleviation. capacity building,andpolicyengagementworkaroundtheworld. to alleviatingpoverty. BuildingontheNobelPrize,J-PAL continuesto expanditsresearch, were awardedthe2019NobelMemorialPrizeinEconomicsforthisexperimentalapproach J-PAL co-founders Abhijit BanerjeeandEstherDuflolongtimeaffiliateMichaelKremer decision-making. others tosharethisknowledge,scaleupeffectiveprograms,andadvanceevidence-informed fight againstpoverty. J-PAL buildspartnershipswithgovernments,NGOs,donors,and world, J-PAL conductsrandomizedimpactevaluationstoanswercriticalquestionsinthe Anchored byanetworkofmorethan200affiliatedprofessorsatuniversitiesaroundthe scientific evidence. Department ofEconomicsworkingtoreducepovertybyensuringthatpolicyisinformed The Abdul LatifJameelPoverty isaglobalresearchcenterbasedatthe Action Lab(J-PAL) children’s learning. ontheir literacy improving mothers’ of of theeffect a J-PAL evaluation on herhandduring off ahennadesign Ajmer, Indiashows A younggirlin debiased machinelearning. errors. Hisrecentinterestsinclude heterogeneouschoice,shaperestrictions,and variables, empiricallikelihood, nonlinearpanel data, andconstructingstandard decades. Hehasworked onsemiparametricestimation,nonparametricinstrumental Whitney Neweyhascontributedfundamentaladvancestoeconometric methodsfor macroeconomic models. when timeseriesarenearlynonstationaryandweakidentification inempirical with weakidentification.Shehasworked ontheproblemsofstatisticalinference recent workconcerningconditionalinferenceinGMMandgeometric methods Anna Mikushevaisaworldauthorityontimeseriesandweakidentification, with data withvaryingcoefficients. analysis withmany prices,quantileregressionwithmeasurementerror, and panel of taxes, discretechoice,anddemandanalysis.Hisongoingworkincludes has long-standinginterestsinspecificationtesting,paneldata,estimatingtheeffect Jerry Hausmanhascontributedmany ofthecornerstoneresultseconometrics.He quasi-Bayesian estimation,endogeneity, andquantileestimation.Emeritusprofessor and variableselection,highdimensionalmodels,shaperestrictions,setinference, Victor Chernozhukov isaleadingeconometrictheorist.Hisinterestsincludemodel Harmless Econometrics. Josh’s researchphilosophy isencapsulatedinhiswidelyadmiredbook,Mostly cause andeffectrelationshipsfromexperimentalnon-experimentaldata. foundations ofcausalinference—thatis,thescienceandphilosophy ofdrawing His workhasformalizedandmadepracticallyrelevantthelogicalstatistical econometric contributionsintheeconomicsofeducationandlaboreconomics. Josh Angrist isaleadingappliedeconometrician,withpath-breaking estimators, design-basedinference,andsyntheticcontrols. including treatmenteffectmodels,instrumentalvariableestimation,matching methods. Hisresearchhascontributedfundamentaladvancestoavarietyoftopics, econometrics, withspecialemphasisoncausalinferenceandprogramevaluation Alberto Abadie’s researchinterestsspaneconometricmethodologyandapplied application inawiderangeoftopicsbothmicroeconomicsandmacroeconomics. using datatounderstandunderlyingstructuralandcausalrelationshipsfinds economic dataanalysis.Econometricsprovidesfundamentalapproachesto Econometrics researchandteachingatMITblendthetheorypracticeof Abadie Alberto Econometrics Victor Chernozhukov Victor Anna Mikusheva Whitney Newey Whitney

kidney transplants that may be possible. saving kidneytransplantsthatmay bepossible. effective toolthatcanvastlyexpandthenumberoflife- hold thepromiseofmakingkidneyexchange amore innovations, alongwithotherapproachesbeingexplored, at boththefederalandindividualinsurerlevel. These donors. The costbarriercallsforreimbursementreform hospitals toregisterthosepatients,aswellaltruistic easiest-to-match patientsanddonorscouldencourage hospitals thatregisteraltruisticdonorsaswelltheir Redesigning nationalplatformstoprioritizepatientsat particularly forsmallhospitals. costs thatcanbeasignificantbarriertoparticipation, participating innationalplatformsalsoincurunreimbursed matched patientswillremainun-transplanted.Hospitals on thewhole,presentsagreaterchancethateasily national systemthat,whilecreatingbetteroutcomes donors in-houseratherthanregisteringthemfora that incentivizekeeping easy-to-match patientsand participation maybelimitedbycurrentplatformrules peryear.by 240-500 The authorsfindthathospital increase thetotalnumberofkidneyexchange transplants coordination throughlargenationalplatformscould the totalnumberoftransplantsperformed;improving by limitingparticipationinnationalplatforms,reduces Their researchsuggeststhatthismarket fragmentation, national programsatall. their patientstonationalplatformsordonotparticipatein within hospitals.Many hospitalssign up onlyafractionof the majority ofexchanges continuedtobeperformed the growthofthesenationalkidneyexchange platforms, Featherstone, andÖmerKaradumanfoundthat,despite co-authors Itai Ashlagi, Eduardo Azevedo, ClaytonR. ( In recentwork“ inKidneyExchange” use algorithmstomapmorecomplicatedarrangements. swaps, aswellnationalkidneyexchange platformsthat a transplant. The sameprinciplecanbeappliedtolarger way swapcansometimesenablebothpatientstoreceive example, twodonor-patientpairsareincompatible,atwo- Kidney exchange offersasolutiontothisproblem.If, for willing donorremainunmatched. with theirlivingdonor. As aresult,many patientswitha a transplantbecausetheyarenotbiologicallycompatible Samaritan donors.Even then,many patientscannotreceive donations fromlivingfriends,relatives,andrareGood transplant. Somepatientsareluckyenoughtoreceive kidneys meansthatmostpatientswillneverreceivea kidney failure,butunfortunately, asevereshortageof A transplantisalife-savingtreatmentforpatientswith Market Failure inKidneyExchange Faculty Research American EconomicReview, 2019),Nikhil Agarwal and

21 Economics at MIT 22 Economics at MIT and climaterisks. placement oftheseinvestments reflectingchangingeconomicconditions infrastructure madetoday, andhighlightstheimportanceof the clear thatfutureenvironmental changefundamentallyaffectsthegainsfrom regions aresharplyaccentuatedbyclimatechange. These resultsmake the gainsfrommoreforesightedallocationsavoidingmostvulnerable been unwarranted evenwithoutthefutureimpactsofsealevelrise,butthat suggest thatthedegreeofcoastalfavoritisminroadupgradeswould have upgrades ofthesametotalcostbutconcentratedfurtherinland. The results higher gainscouldhavebeenachievedbyalternativeallocations ofroad connect inundatedareas. The centralfindingoftheanalysisisthatmuch the significantshareofinvestments thatarelosttoinundationor once theeffectsoffutureenvironmental changeareconsidered. Thisreflects to 2010ledlargewelfaregains,butthatthesegainsaresharplylower The resultssuggestthattheroadinvestments madein Vietnam from2000 transport networks andprojectedenvironmental changein Vietnam. with detailedgeo-referencedmicro-dataonmigration,economicactivity, and environmental change proceeds. The estimation combinesthemodel ofeconomicactivityacrossspaceascoastalfortuneschange time. The modelcapturesthedynamiceffectsofroadinvestments onthe justified usingadetailedmodeloftheevolution Vietnam’s economy over The analysisconsiderswhethersuchsignificantcoastalinvestment was in roadsthatwasstrikinglyconcentratedcoastalareas. effects ofroadupgradingfrom2000to2010,aperiodmajor investment favor coastalandlow-lyingregions.Inthiscontext,thepaperestimates vulnerable torisingsealevels,yetinfrastructureinvestments continueto reforms beginninginthelate1980s,andcountry’s coastlineishighly inlandfollowingaseriesofeconomic economic activityhasbeenshifting elevation fertilefloodplainsofdeltasandcoastalharbors. Thelocusof economy withpopulation andeconomicactivityconcentratedinthelow Vietnam, incommonwithmuchofdeveloping Asia, isahistoricallyagrarian The paperexaminesthisusingdataonroadinvestments in Vietnam. vulnerable coastalregionsarejustifiedgivenchangingfortunes. Coastal Cities”,ClareBalboniconsiderswhethersuchlargeinvestments in recent work,“InHarm’s Way? InfrastructureInvestmentsandthePersistence of to attracthugeinfrastructureandspatialpolicyinvestments worldwide.In andsealevelsrise.Despitethesetrends,coastalareascontinue intensify vulnerable totheeffectsofenvironmental changeasnaturaldisasters natural advantagesforagricultureandtrade,buttheseareasareincreasingly Human settlementhaslongbeendrawntocoastalregions,reflectingtheir In Harm’s Way? The Persistence ofCoastal Cities Faculty Research

studied yetvitalcharacteristicofthelabormarket. this ambitiousprojectwillfurtherilluminatealittle- labor supplyshocks. Fredric hopesthat,ultimately, consideration bytheteam,includingtradeshocks and fall semester, hewillexploreotherforcesunder As Fredric continuespursuing theprojectinto into theinterplaybetweentechnologyandnewwork. new work,thisprojectpromisesinterestinginsights exposure toinnovation. Along withthemeasureof to occupationsandindustriesevaluatetheir out-of-sample accuracy. Hematchedthesepatents from machinelearning,andmanuallyvalidated language processingwordembeddingstechnique into productandprocesspatentsusinganatural of patentsfromGooglePatents, classifiedthem in patentrecords.Fredric web-scrapedtheuniverse recorded comes frominnovations,whichareoften shape thecreationofnewwork? Onepossibleforce of theUSchangedacrossdecades? What forces these newoccupationsacrossthewagecontinuum new work–comefrom?Howhasthedistributionof the flipside. Wheredonewoccupations–aproxy for beenoverlooked: project focusesonwhathasoften intelligence seemmoreprominentandurgent,this displacing effectsofautomationandartificial evolution ofnewwork.Inatimewhenthelabor- of 2020onaprojectinvestigating theoriginsand with ProfessorDavid Autor duringthesummer MIT DEDPmaster’s studentFredric Kong worked Fredric Kong in Economics Student Research Nikhil Agarwal Ellison’s researchiswide-rangingbuthasfocusedparticularlyon markets, andthe efficacyofaffirmativeactionpolicies.SaraFisher firms andmarkets, thedesignandperformanceofvariousonline of consumerdeviationsfromneoclassicaloptimizingbehaviorfor organization. Hisrecentworkincludesanalysesoftheimplications of theoreticalandempiricalanalysesacrossthefieldindustrial matching programs.GlennEllison’s researchspansabroadrange design andimplementationofbothorgandonorschool His workhasmadeimportantpracticalcontributionstothe particularly thoseinvolving market designandtwo-sidedmarkets. theory andeconometricstobearonavarietyofproblems, industrial organization.Nikhil Agarwal bringsskillsineconomic The departmenthasastrongandvibrantresearchpresencein students. present theirwork-in-progress tofacultyandfellowgraduate addition, thereisaweeklylunchatwhichgraduatestudents Industrial Organization Workshop severaltimeseachyear. In Organization Workshop, whichmeetsjointlywiththeHarvard by localandoutsideresearchersarepresentedintheIndustrial among graduatestudentsinrelatedfields.Currentresearchpapers dissertations inindustrialorganizationandisalsoverypopular methods courseisstronglyrecommendedforstudentswriting structural econometricmethodsinthethirdsemester. The first twosemesters,andfocusesonhands-onexperiencewith to theclassicquestionsinindustrialorganizationduring long coursesthatdeveloptheoreticalandempiricalapproaches field sequenceinindustrialorganizationcomprisesthreesemester- health economics,andenergyeconomics. The mainPhD undergraduate coursesinindustrialorganization,e-commerce, product andservicemarkets. MITEconomicsregularlyoffers more generally, thestructure,behavior, andperformanceof strategic behavioroffirms,theeffectgovernmentpolicy, and The fieldofindustrialorganizationandregulationanalyzesthe and Regulation Industrial Organization Sara Fisher Ellison Tobias Salz

faculty membersRichardSchmalenseeandErnstBerndt. member Robert Pindyck,andSloan Applied Economicsemeritus decade asPresidentofthe Alfred P. SloanFoundation, Sloanfaculty professor Paul Joskow, a whoreturnedtothedepartmentafter in industrialorganizationandrelatedfields,includingemeritus We arealsofortunatetohaveseveralactiveemeritusprofessors frequent andactivecontributorstotheworkshop andfieldlunch. on energymarkets andenvironmental sustainability. They areboth members ChristopherKnittelandJingLiteachdepartmentcourses organization coursesduringeachsemester’s visit. Sloanfaculty winner Jean Tirole, whoguestlecturesinMIT’s graduateindustrial have alongstandingvisitingfacultyarrangementwithNobelPrize organization. The MITEconomicsDepartmentisfortunateto faculty enrichtheexperienceofstudentsworkinginindustrial In additiontothesecorefaculty, anumberofassociated graduate andundergraduatemicrotheorytexts. incentive provisioninhealthcare.Hehasalsoauthoredwell-known current researchincludingworkonhealthinsurancemarkets and theory, organizationaleconomics,andindustrialorganization,with Michael Whinston hasmadesignificantcontributionstocontract diverse asride-hailingplatforms,wastecollection,andautoloans. search byconsumers.Hehasappliedhisideastosettingsas of intermediariesinmarkets withimperfectinformationandcostly Division oftheDepartmentJustice. Tobias Salzstudiestherole competition policy, buildingonherpreviousserviceatthe Antitrust transportation markets. Hercurrentresearchtargetsquestionsin and market competitiononperformanceinarangeofenergyand economics ofregulationwhostudiestheeffects online courseondataanalysis.NancyRose isanexpertinthe industry. Shealsohasanaward-winningandpopularopen the digitaleconomy andtheeconomicsofpharmaceutical Nancy Rose Michael Whinston

23 Economics at MIT 24 Economics at MIT labor relations. governance maybeonerootcause ofcooperative representatives. As aconsequence,shared to successfullybuildcoalitionswith theshareholder representatives mayhavetobemoderates inorder governance. Thus, inordertoexert influence, labor majority ofboardseatsinmostcountrieswithshared shareholders, sincethecapitalsidegenerallyholdsa perceived asexcessive couldalwaysbeoutvotedby particular, radicallaborrepresentativeswithdemands cooperative laborrelationsinthefirstplace.In of workers incorporateboardsthatmayfacilitate of sharedgovernanceandminorityparticipation The authorsentertainthatitmaybetheinstitution unions aremoderateasintheGermancontext? Does suchsharedgovernanceonly“work”when labor andcapital. communication andrepeatedinteractionsbetween cooperation, forexamplebyinstitutionalizing governance maycrowdininvestment byfacilitating and findnoeffectsonwages. Theyarguethatshared towardsskilledlabor a moderatecompositionalshift revenue in-house.Inaddition,theauthorsdocument and thatthesefirmsproduceahighershareof production processtowardshighercapitalintensity their find thatshared-governancefirmsshifted of outcomesthetwogroupsfirms. Theauthors in others,allowingforaquasi-experimentalanalysis shared governanceinsomefirmsandabolishedit study a1994reforminGermany thatlocked in seats actuallyincreasescapitalformation. They Heining showthat,infact,grantingworkers board Jäger andco-authorsBenjaminSchoeferJörg However, in“LabortheBoardroom”, Simon from investments. that laborwillgrabalargershareofthefruits discourage capitalformation,asinvestors anticipate hypothesis, grantingworkers control rightswill in theUS. According totheinfluential “hold-up” arrangements arecurrentlyunderconsideration debated, andpolicyproposalsthatemulatethese workers suchauthorityandvoiceremainhighly company boards. The consequencesofgranting institutions includeworker-elected directorson firms’ decision-making.Suchsharedgovernance United States,grantworkers formalauthorityin Many countriesinContinental Europe,butnotthe intheBoardroom Labor Faculty Research

William A.“Sandy” DarityJr. Where aretheynow? Economics students: Paul Samuelson. committee headedbyLance Taylor that includedRobert Solow and MIT, whereheearnedhisPhDunderthedirection ofadissertation atBrown Universitybeforearrivingat Darity completedhisB.A. in professionaloutlets. has publishedoredited13books and publishedmorethan300articles Inter-Group Disparity(2003)(co-editedwith Ashwini Deshpande). He Leeson), andBoundariesofClanColor: Transnational Comparisons of Macroapplications (2004)(co-authoredwith Warren Young andRobert Cottom), Economics,Economists,andExpectations:Microfoundationsto Landscape ofMarketized Education(2010)(co-edited Tressie McMillan (2020). Previousbooks includeFor-Profit Universities: The Shifting Here toEquality:Reparations forBlack Americans inthe21stCentury KirstenMullen,isFromHis mostrecentbook,coauthoredwith A. Colege andClaremont-McKenna College. Maryland atCollege Park, theUniversityof Texas at Austin, Simmons at theUniversityof Texas at Austin, GrinnellCollege, theUniversity of Association andtheSouthernEconomic Association. Hehasalsotaught Solutions in2017. HeisapastpresidentoftheNationalEconomic honor, Politico 50recognitionin2017, andanawardfromGlobalPolicy from theNationalEconomic Association, theorganization’s highest Governors (1984).HereceivedtheSamuelZ. Westerfield Award in2012 (1989-90) andavisitingscholarattheFederal Reserve’s Boardof (2011-2012) atStanford, afellowattheNationalHumanitiesCenter a fellowattheCenter for Advanced StudyintheBehavioralSciences He wasavisitingscholarattheRussellSageFoundation (2015-2016), and psychologicaleffectsofexposuretounemployment. and theIndustrialRevolution, thehistoryofeconomics,andsocial market outcomes, theeconomicsofreparations, Atlantic slave trade North-South theoriesoftradeanddevelopment,skinshadelabor race, classandethnicity, schoolingandtheracialachievementgap, February 2005.Ingeneral,hisresearchhasfocused oninequalityby of EconomicsandFinance’s annualmeetinginSavannah,Georgia address hegaveatthe Academy stratification economics ina keynote Darity launchedthesubfieldof Chapel Hill. University ofNorthCarolina at of theeconomicsfacultyat joining Duke, hewasamember Ethnic InequalityatDuke. Priorto Research NetworkonRacialand was thefoundingdirectorof and Studies and AfricanAmerican chair oftheDepartment African Duke University. He hasservedas Cook Center onSocialEquityat director oftheSamuelDuBois Studies, andEconomicsthe and AfricanAmerican African Cook ProfessorofPublicPolicy, (PhD ’78)istheSamuelDuBois (“Sandy”)DarityJr.William A. Joshua Angrist advise laborstudents,keeping themontheeconometricfrontier. Chernozhukov, Anna Mikusheva,and Whitney Neweyteachand in developingcountries.Econometricians Alberto Abadie, Victor Banerjee, EstherDuflo,and Frank Schilbachstudylabormarkets policies onlabormarkets, whiledevelopmenteconomists Abhijit health ,disabilityprograms,andothergovernment Amy Finkelstein andJonathanGruberstudytheimpactof regularly withthecorelaborteam.Publicfinanceeconomists Many othercolleaguesareinterestedinlabortopicsandinteract policy evaluation. variation embeddedinmodernschoolassignmentschemesfor econometric strategiesthatleveragethequasi-experimental design schoolchoicemechanisms,developingsophisticated the JohnBatesClarkMedalin2018,useseconomictheoryto wages andemployment.Parag Pathak, whowas awarded institutional arrangements,andlabormarket frictionsinshaping Thematically, hefocusesonunderstandingtheroleoffirms, quasi-experiments, andcontributingtoappliedeconometrics. domains, fieldinglarge-scalerandomizedexperiments,crafting among less-educatedworkers. SimonJägerworks across Insurance programinmaskingchronicallyhighunemployment demand forskills,andtheroleofSocialSecurityDisability impact oftechnologicalchangeonincomedistributionandthe consequences ofrisingimportcompetitionfromChina,the David Autor’s researchhasfocusedonthelabormarket the effectsofschoolreformonhumancapitalandearnings. on econometricmethodsforprogramandpolicyevaluation practice overthelasttwodecades,focuseshiscurrentresearch a leaderofthecredibilityrevolutionthathasreshapedempirical between skill,technology, andthewagestructure.Joshua Angrist, the designofoptimalunemploymentinsurance,andlinks questions inlaboreconomics,includingtheeffectsoftraining, economics. Daron Acemoglu has addressedcoretheoretical A distinguishedgroupofMITfacultyspecializesinlabor methods thatareofspecialinteresttolaboreconomists. more advancedcoursesonlabortopicsandtheeconometric on modernempiricalandtheoreticallaboreconomics,aswell questions. Graduatestudentsmaytake atwo-semestercourse and robusteconometrictoolstoanswercentraleconomic course emphasizesthepowerofmicroeconomicreasoning human capital,andthedistributionofincomewages. This provides anoverviewofsupplyanddemandinthelabormarket, wages andemployment. The undergraduate laborcourse Labor economistsstudytheeconomicforcesthatdetermine Economics Labor David Autor Simon Jäger if thisiscostlyforeconomicgrowth. sample includesmany democraciesthatfailedandwereoverthrown,even growth, thisdoesn’timplythatsustainingdemocracyiseasy. The authors’ Though theevidencesuggeststhatdemocracyisgoodforeconomic democratization. Acemoglu andco-authorsovercomebyexploitingregionalwaves of may haveotherdifferencesfromthosethatremaininautocracy, aproblem of thedynamicsincomepercapita.Finally, countriesthat democratize hardship, exploitingwithin-countryvariationrequirescarefulmodeling happenswhenautocraticregimesfaceeconomic democratization often the effectsofdemocracyonsubsequentgrowth.Moreover, because cross-country variation,makingitdifficultorimpossibletoteaseout identified this?Onereasonisthatmany previousstudiesfocuson If democracyissogoodforgrowth,why hasn’tthepastliterature per capitaincome. annual growthinthenexttwodecades,almostcatchingupwithJapan’s the militarygovernmentinJune1987, andtheeconomy achieveda5% union andpro-democracyprotestsduringthedecadefinallybroughtdown income percapitaofonlyaboutonethirdJapan’s. Largestudent,trade But growthhadsloweddownby1980whenthecountryreachedan Park Chung-hee,whodirectedSouthKorean state-basedindustrialization. creditedtoauthoritarianleadersinthe1960s,suchasGeneral is often South Korea illustrates thisphenomenon. The country’s growthmiracle up with20%higherincome(grossdomesticproduct)percapita. democratic regime—growmorerapidlyinthenext20yearsorso,andend regime suchasamilitarydictatorship,monarchy orautocracytoa growth. Countries thatdemocratize—switchfromanondemocratic notwithstanding, democracyappearstobequitegoodforeconomic Naidu, Pascual Restrepo (PhD’15)andJamesRobinson showthat,critics Economy, February 2019),Daron Acemoglu andco-authorsSuresh In recentwork,“DemocracyDoesCause Growth”(JournalofPolitical spearheading economicgrowth. problems inthe West andlookfavorablyuponthe“Chinesemodel”for many commentatorsblamedemocracyfortheeconomicandsocial safe totrustthem[thepeople]withthefirstofficesinstate”. Today, tyranny.second worstformofgovernmentafter Aristotle wrote:“itisnot democracy withanarchy, instabilityorevenmobrule,andcalleditthe Democracy hashadmany powerfulcriticsovertheages.Platoequated Cause Growth Does Democracy Faculty Research

25 Economics at MIT 26 Economics at MIT scientists andengineers. MIT EnergyInitiativebringstogether social Paul Joskow, Nancy Rose, andJim Poterba. The economics. Affiliates inourdepartmentinclude supports researchinenergyandenvironmental for EnergyandEnvironmental Policy Research Jake JacobyandRichardSchmalensee. The Center Jing Li,JacquelynPless,andemeritusprofessors economics includeNamrataKala,ChrisKnittel, School facultywithinterestsinenvironmental broad MITenvironmental community. The Sloan a The EconomicsDepartmentalsobenefitsfrom series ofclimatesymposia. regulations. Joskow organizedMIT’s 2019-2020 energy aswellstudiesofenvironmental work onconservation,nuclear, andrenewable body ofworkonelectricitygenerationincludes on developingeconomies.Paul Joskow’s vast deforestation andtheimpactofclimateshocks development economicsincludesworkon with severalothers.BenOlken’s workin The fieldofenvironmental economicsoverlaps political economy ofIndonesiandeforestation. investments in Vietnam, andexploringthe potential effectsofsealevelriseoninfrastructure international tradetoprovideinsightintothe adapting empiricaltechniquesfromthefieldof broad perspectivetothetopic. This includes work onglobalwarminghasbroughta environmental economics. Herinnovative Clare Balboni’s primaryresearchinterestis environmental economics. undergraduate andgraduatecoursesin The departmentregularlyoffersboth change onhealth,well-being,andproductivity. of environmental degradationandclimate Clare Balboni Clare Balboni Economics Program Environmental well as the impact well astheimpact the environment, as and policiesaffect economic incentives includes thewaysthat environment. This the economic forcesand the interactionbetween economics investigates Environmental

empirical economics. students; andoffersresearchassistantships totalentedundergraduatesinterestedin hosts post-docs;providesdataaccess, mentoring,andfinancialsupportformany graduate In additiontocuttingedgeresearch, theSEIImissionincludeseducationandtraining. of theincomedistribution. central roleofeducationandskillsindeterminingthelifetimeearnings ofworkers atalllevels competition onUSmanufacturingworkers. Mostrecently, SEIIresearchers haveexploredthe SEII’s recentworkontradehasdocumented theprofoundlydisruptiveimpactofinternational technology forworkers performingroutinejobtasks. Overturningconventional wisdom, high-education, high-wageandlow-education,low-wagejobs—by substitutinginformation of computerizationincatalyzingemployment“polarization”—the simultaneousgrowthof international incomeinequality. SEII’s publicationsandreportshaveilluminatedtherole and risinginternationaltradehasshapedthenationaldebateon thecausesofUSand Over thelastdecade,researchonlabormarket consequencesofworkplace automation and socialimpactsofNYC schools. andBostonpublicschoolprogramsaimedatdiversifying current research,fundedbytheMITIntegratedLearningInitiative,exploreseducational credible measuresofschoolqualityandtoassessthebroadereffectschoice.SEII’s these mechanisms,whichtypicallyincludeanelementofrandomassignment,toprovide mechanisms inBoston,Chicago,Denver, New York, andNewOrleans.SEIIresearchersuse a choiceofschools.SEIIresearchershelpedtodesignandimplementthesematching school districtsrelyonformalgame-theoreticmatchingschemestogivetheirstudents also producedthefirstrandomizedevaluationofBoston’s charterandpilotschools.Many (randomized) impactevaluationoftheiconicKIPPcharterschoolnetwork. The SEIIteam with traditionalpublicschools. The SEIIteamprovidedthefirstrigorouslottery-based alternative schoolmodels,suchascharterschoolsandvoucher-fundedprivateschools, and exciting inthehumancapitalpolicyarena. compares The discussioninthiscontextoften The debateovertheeffectsofschoolchoiceandreformisonemostvigorous Research andImpact the SloanFoundation, andtheSpencerFoundation. Education Sciences,aswellmany foundationpartners,includingthe Arnold Foundation, supported bygovernmentgrantsfromtheNationalScienceFoundation andtheInstitutefor colleges anduniversitiestheSusan Thompson Buffett Foundation. SEII’s workis schools. The team’s highereducationpartnersincludeNebraska’s stateandcommunity Departments ofEducation.SEIIalsoworks withleadersandteachersatdozensofcharter the New York, Chicago,andDenver PublicSchoolDistricts,andtheLouisianaIndiana Massachusetts DepartmentofElementaryandSecondaryEducation,BostonPublicSchools, SEII works witheducationpolicy-makers atthestateanddistrictlevel.Partners includethe Partnerships scientific insight. Pathak, SEIIworkstheeducationpolicydebatefromguessworkandideologyto toshift Under thedirectionofMITEconomicsProfessorsJoshua Angrist, David Autor, andParag education andtheconnectionsbetweenhumancapital American incomedistribution. The SchoolEffectivenessandInequalityInitiative(SEII)focusesontheeconomicsof andBuildingSkillsthroughResearchStrengthening Schools Amy Finkelstein on publicpensions. Emeritus professorPeter Diamondcontinuesanactiveresearchprogram , capitalandestatetaxation,unemploymentinsurance. and socialinsurancedesign,includingthetaxationofhigh-income systems indevelopingcountries.Iván Werning works onoptimaltax affect retirementsecurity. BenjaminOlken studiestaxationandwelfare specializes intheeconomicsoftaxpolicy, withafocusonpoliciesthat labor market consequences ofsocialinsuranceprograms.JamesPoterba programs, alsowithafocusonhealthissues.SimonJägeranalyzesthe Gruber studiesarangeofgovernment-providedsocialinsurance markets andgovernment interventioninhealthcaremarkets. Jonathan economics. Amy Finkelstein works onmarket failures ininsurance Six facultymembershavesubstantialresearchprogramsinpublic core materialontaxationandsocialinsuranceprograms. students enrollinatwo-semesterpubliceconomicssequencethatcovers economics aswellacourseinenvironmental economics.Graduate Undergraduate offeringsincludeanintroductorycourseinpublic infrastructure, andhealthcare. government spendingprogramsinareassuchaseducation,defense, insurance,andfoodstamps,aswelltheeffectsofdirect social insuranceprogramssuchasSocialSecurity, Medicare,Medicaid, the behaviorofindividualsandfirms,rationaleforimpact The fieldstudiesquestionssuchastheimpactofincometaxationon expenditure policies,aswelltheoptimaldesignofthesepolicies. Public economicsexplorestheeconomiceffectsofgovernmenttaxand Public Economics Jonathan Gruber James Poterba Adedoyin Olateru-Olagbegi and accessglobally. focus onusingdigitalhealthtoolstoimprovehealthcarequality University asaSchwarzman Scholar. sheplansto Afterwards, a master’s degreeinglobalaffairsatBeijing’s Tsinghua academicyear,In the2020-2021 Olateru-Olagbegiwillcomplete epidemic inSouth Africa. coffee farmersin Colombia, andtakingaclassontheHIV/AIDS race andmigrationinBrazil,co-designingtechnologieswith enriched bymultipleinternationallearningexperiences,studying Sigma KappaSorority. Olateru-Olagbegi’s MITexperiencewas member oftheBlackStudents’Union,andanofficerwithin was alsoanEMTontheMIT Ambulance, anexecutive board children whohavebeenaffectedbyaparent’s cancer. She Camp Kesem atMIT, afreesleepawaysummercampfor250 the MITCorporation. SheservedfortwoyearsasDirectorof Committees, andshewillbuildonthisworkasamemberof Beyond classes,Olateru-OlagbegisatonseveralInstitute about howtotackleimportantandcomplexeconomicquestions. the opportunitytolearnfrombothfacultyandfellowstudents several developingcountries.Inbothclasses,sheappreciated between ageatmarriageanddomesticviolenceprevalencein Olagbegi conductedaprojecttoexaminetherelationship economic issuesthroughanempiricallens.In14.33, Olateru- In 14.75, Olateru-Olagbegilearnedaboutnumerousinternational (14.75) andResearch andCommunication inEconomics(14.33). courses werePolitical Economy andEconomicDevelopment within theEconomicsDepartment. Two ofhermostmemorable Olateru-Olagbegi enjoyedexploringawiderangeofcourses with amajor incomputerscience,economics,anddatascience. Adedoyin Olateru-OlagbegigraduatedfromMITinJune2020 Majors inEconomics Undergraduate

27 Economics at MIT 28 Economics at MIT are offeredbythe Political ScienceDepartment. in politicaleconomy canalsoenrollinanumberofothercoursesthat institutions andeconomicdevelopment.Graduatestudentsinterested member oftheMITSloanfaculty, works onthelinks betweenpolitical a theory ofpolicy-makingandpoliticalinefficiencies.SimonJohnson, societal cooperation,andStephenMorris,whohaswrittenonthe who hasexaminedconflict,repression,coercionandfoundationsof level politicalinstitutionsonwomen’s representation, Alex Wolitzky, issues includeEstherDuflo,whohasworked ontheeffectofvillage- to politicaleconomy. Otherfacultyworkingonpoliticaleconomy a secondgraduatecourseontheoreticalandempiricalapproaches economy ofinstitutions anddevelopment. The departmentalsooffers Banerjee, andBenjaminOlken offeragraduatecourseonthepolitical of corruptionindevelopingeconomies.Daron Acemoglu, Abhijit affecting policyoutcomesandeconomicgrowththeimplications development. BenjaminOlken studiestheroleofpoliticalleadersin on issuesattheintersectionofpoliticaleconomy andeconomic and cooperation,theroleofstatecapacity. Abhijit Banerjeeworks as thedynamicsofpoliticalinstitutions,interplaybetweenconflict between institutionsandeconomicgrowthdevelopment,aswell outcomes. Daron Acemoglu studies thetheoreticalandempiricallinks of policiesandtheimplicationspoliticalfactorsoneconomic incentives. Itfocusesbothonthedeterminationofabroadrange interplay ofpoliticalfactors,institutions,andeconomic Political economy isthesubfieldofeconomicsthatstudies undergraduate course inhealtheconomics. during theCOVID epidemic. The EconomicsDepartmentoffers an Parag Pathak isdevelopingmodels ofmatchingresourcesto needs the useofchoice-basedexchanges topromote insurancecoverage. to employersponsoredinsurance, expansionsofMedicaid,and towards healthinsuranceinavariety ofcontexts,suchastaxsubsidies utlilizers”, amongothertopics. JonathanGruberstudiespublicpolicy efficacy ofinterventionstocontain expenditurebyhealthcare“super- the willingnessofindividualstopayforhealthinsurance,and of healthcaredelivery, theeffectsofhealthinsuranceonhealth, in developingnations. Amy Finkelstein studiestheeconomics field experimentstounderstandtheimpactofhealthinterventions organs. Abhijit Banerjee,EstherDuflo,and Frank Schilbach conduct matching inmedicalmarkets bothformedicalstudentsandhuman with stronginterestsinhealtheconomics.Nikhil Agarwal works on the eraofCOVID-19. Their workissupportedbyalargefacultygroup research inhealtheconomics. This worktakes onspecialinterestin quality data,havepromptedalargenumberofstudentstocarry out continued growthinhealthcarecosts,andtheavailabilityofhigh- economics isarapidlygrowingareaofresearchinterest. The Healthcare isarapidlygrowingsectoroftheeconomy, andhealth Health Economics Political Economy Opportunity housingmobilityprogram. principal investigator ofthelong-termevaluation oftheMovingto US DepartmentofLaborduring the Clinton Administration and isthe Lawrence Katz(PhD’86)(Harvard) servedasChiefEconomistforthe the principalinvestigators oftheOregonHealth InsuranceExperiment. Finkelstein (PhD’01)(MIT)isaleadinghealtheconomistandoneof J-PAL North America isledbytwoCo-Scientific Directors. Amy replication andexpansionofsuccessfulevaluatedprograms. help partnersapplyresearchinsightstolocalcontexts,andsupport the feedback sessions.Policy staffalsotranslateresearchintopolicylessons, in-person trainings,researchmanagementsupport,and design policymakers tobebetterproducersandconsumersofevidencethrough J-PAL North America staffbuildthecapacityofresearchersand • • • • • research andpromoteevidence-informedpolicymaking: J-PAL North America runsfivemajor initiativestocatalyzepolicy-relevant 240 ongoingandcompletedrandomizedevaluationsinNorth America. evidence totheregion.J-PAL affiliatedresearchershaveconductedover North America bringsJ-PAL’s provenmodelofgeneratingrigorous credibility inconductingrandomizedevaluationsinternationally, J-PAL policy isinformedbyscientificevidence.DrawingonJ-PAL’s established MIT in2013toadvanceJ-PAL’s goalofreducingpovertybyensuringthat on theefficacyofsocialprograms.J-PAL Northat Americawaslaunched a difficultandcomplextask.often lackcredibleevidence Policymakers learning outcomes,promotehealth,andaddressothersocialissuesis Developing successfulpublicpoliciestocombatpoverty, improve North America J-PAL the pandemic. andimplementingeffectivepolicyresponsesto by identifying ofCOVID-19individuals andcommunitiesrecoverintheaftermath The COVID-19 Recovery andResilience initiativeaimstohelp and governmentefficiencyamongothers. violence prevention,environment, homelessness,consumerfinance, across abroadrangeofsectors,includingeducation,crimeand The SocialPolicy Research Initiativesupportsrandomizedevaluations Matthew Notowidigdo(’03,MA’04,PhD’10)(Northwestern). nature ofwork. This initiativeisco-ledbyDavid Autor (MIT)and economic barriersandsocialchallengesassociatedwiththechanging strategies toincreaseopportunitiesforworkers andreducethe The Work oftheFuture Initiativeidentifieseffective,evidence-based preeminent researcherstoanswerhigh-prioritypolicyquestions. with funding,technicalsupport,andopportunitiestocollaborate The StateandLocalInnovationInitiativeprovidesgovernmentleaders effective, andequitable. on strategiesthatmake healthcaredeliveryintheUSmoreefficient, The USHealthCare DeliveryInitiativegeneratesrigorousevidence

MIT Econt-shirts ata2019GEAevent. Students IndiraPuri andJuliette Fournier offtheircustom showing https://economics.mit.edu/covid19. These andanumberofotherworks havebeencollectedat recently, vaccines. systems forventilators,personalprotectiveequipment,andmost India; andParag Pathak hasinvestigated thedesignofallocation the impactofpandemicindevelopingnations,focusingon areas thatsawhighCOVID-19 caseloads;JonathanGruberstudied Amy Finkelstein investigated theriseinnon-COVID mortalityin for analysesofCOVID-19 canpotentiallyyieldmisleadingviews; in whichusingtheclassicSusceptible-Infectious-Recovered model features ofmodelspecification;GlennEllisonhasstudiedtheways of infectiousdiseases,highlightingtheirsensitivitiestovarious investigated the dynamicbehaviorofstandardmodelsthespread financial shocksuchasCOVID-19; GlennandSarahEllisonhave Purchases inaddressingdemandcontractionsfromalargenon- and Alp Simsekhavestudiedthe effectivenessofLargeScale Asset messaging onmask-wearing behaviorinIndia;RicardoCaballero Abhijit BanerjeeandEstherDuflostudiedtheefficacyofpublic Payroll ProtectionProgramonemploymentduringthepandemic; complete lock-downs; David Autor hasexaminedtheimpactof health andeconomy andthetrade-offsassociatedwithpartialversus Werning, andMichael Whinston havestudiedtheintersectionof this workincludes:Daron Acemoglu, Victor Chernozhukov, Iván burgeoning literatureonCOVID-19-related research. A selectionof MIT Economicsfacultyhavebeenactivecontributorstothe Studying theeconomicimpactsofCOVID-19 Faculty Research

University ofChicago. fromthe Georgetown UniversityandanM.B.A. Foreign Relations. from Altman receivedan A.B. Public SchoolsandamemberoftheCouncil on also aDirectorontheBoardofNew Visions for and isamemberoftheMITCorporation. Heis Hospital, servingonitsFinanceCommittee Mr. Altman isa Trustee ofNew York-Presbyterian President ClintonasDeputySecretary. Secretary forDomesticFinanceandlaterserving initially servingPresidentCarter as Assistant two stintsintheU.S. Treasury Department, investment banks intheUnitedStates.Heserved of Evercore, oneofthemostactiveindependent by Roger Altman, Founder andSeniorChairman The Economics Visiting Committee ischaired evaluation foreachdepartment. Chancellor, providinganimportantexternal prepare reportsforthePresident,Provost,and health andfuturedirection.Committees then faculty, andcurrentstudentsonthedepartment’s years tohearreportsfromDepartmentHeads, Corporation. These committeesmeeteverytwo department graduates,andmembersoftheMIT Committee, consistingofdistinguishedscholars, Every departmentatMIThasa Visiting Visiting Committee Economics Department Roger Altman

29 Economics at MIT 30 Economics at MIT Eva Demsky graduation. will leadherafter two yearsatMITwillbringandwhereherexperiences year. Sheislookingforwardtowhatherremaining the EmersonProgramatMITasa Voice Scholarthis MIT Concert Choir. Demskywasalsoacceptedinto member ofthe Asymptones acappellagroupandthe Treasurer ontheexecutive board.Inaddition,sheisa the Musical Theatre Guildandcurrentlyservesas Outside ofclass,Demskyisanactivemember knowledge onthesubject. issue, andtoassistProfessorEllisoninimproving her understandingofsuchacriticalandtimely Demsky feltfortunatefortheopportunitytoimprove trends inthespreadofcoronavirusNew York City. the Universityof Washington, andsearchedfor modeling coronaviruspredictionssinceMarchfrom (susceptible/infected/recovered), createdgraphs She researchedtheaspectsofSIRmodel modeling techniquesoftheCOVID-19 pandemic. assistant onaprojectthatdiscusseddifferent in summer2020.Demskyservedasaresearch UROP, workingwithProfessorSaraFischerEllison she hasalreadyhadamemorableexperienceas Although DemskyjustbeganherCourse 14 journey, majoring inmathematicaleconomicsandmusic. Eva DemskyiscurrentlyajunioratMIT, double Majors inEconomics Undergraduate Drazen Prelec,NancyRose, Rob Townsend, and Alex Wolitzky. Drew Fudenberg, Jon Gruber, SimonJäger, StephenMorris,BenOlken, Parag Pathak, Banerjee, Arnaud Costinot, DaveDonaldson,EstherDuflo,GlennEllison, Amy Finkelstein, evidence, orapplicationincluding:Daron Acemoglu, David Atkin, David Autor, Abhijit Many otherEconomics DepartmentfacultyhaveintereststhatintersectwithOEtheory, MIT Sloan. Michael Whinston, andothers,includingCharles Angelucci whohasnewly arrived at In recentyears,thedoctoralcoursesinOE(14.282-4) havebeentaughtbyRobert Gibbons, (such ascorporatestrategy, humanresourcemanagement,marketing, andoperations). psychology, economicsociology, andpoliticaleconomy) andbysomemanagementfields Similarly, many ofthesetopicsarestudiedbyothersocialsciences(suchas organization (verticalintegration)andlaweconomics(contractsbetweenfirms). allocation, transferpricing),andbetween-firmtopicsarealsostudiedinindustrial topics arealsostudiedinlaboreconomics(employment)andcorporatefinance(resource Many ofthesetopics arenottheexclusive preserveofOE. To thecontrary, within-firm the sourcesandconsequencesofthisperformanceheterogeneity. political economy, andtrade—havealsobeguntoexploreorganizationalissues,including of economics—includingdevelopment,education,industrialorganization,labor, macro, organizations shouldbeorganizedand(b)howlowperformerscanimprove.Otherfields recent interestintheperformanceofhealthcaresectorfocuseson(a)how understanding thedriversofperformanceinorganizations.For example,theintense As aresult,theremaybeopportunitiestoimproveeconomicwelfareandgrowthby This heterogeneityisevidentfromlarge-scaledatasetsinallcountriesandindustries. Robert GibbonsRobert Organizational Economics apparently similarenvironments. the productivityoftheseorganizationsevenwhentheyoperatein perhaps mostsurprising(3)thereissubstantialheterogeneityin instead withintheseprivate-andpublic-sectororganizations; deal ofeconomicactivityoccursnotinmarket transactionsbut schools, hospitals,governmentagencies,andmore;(2)agreat organizations studiedbythisfieldincludenotjustfirmsbutalso further aspectsofthefieldareperhapsmoresurprising:(1) performance oforganizations,asonewouldanticipate. Three Organizational economics(OE)studiesthedesignand

Jonathan Parker Hui Chen macroeconomic effectsoffinancialmarkets, withemphasisonunderstandingfinancialcrises. department’s undergraduatecourse,FinancialMarkets andtheMacroeconomy, analyzesthe Crises, teachesthecanonicalmacroeconomicmodelsoffinancialfrictionsandcrises. The between macroeconomy policyandfinancialmarkets. Ricardo’s graduatecourse,Economic In theEconomicsDepartment,RicardoCaballero and Alp Simsekresearchtheinteraction and Current Topics inFinancecoversadvancedresearch inavarietyofareaswithinfinance. Farboodi, Antoinette Schoar, andDavid Thesmar), buildsonthefirstcorporatefinancecourse; macro- andmicro-economicfoundations; Advanced Corporate Finance,(taughtbyMaryam solution, evaluation,andestimationoftheoriesassetpricesfinancialmarkets andthe Pricing, (taughtbyDanielGreenwald, EbenLazarusand Adrien Verdelhan), focusesonthe Students canalsochoosetoenrollinoneormoreofthreeadvancedcourses. Advanced Asset contributions andthekey methodologicaltoolsinmoderncorporatefinance. Schoar) inthespring. The courseexposesstudentstothebasictheoreticalandempirical goes onwithCorporate Finance(taughtbyMaryamFarboodi, David Thesmar, and Antoinette options, theeconomicsofuncertainty, andinformationefficientmarkets. Thesequence Lawrence Schmidt)inthefall,whichcoversbasicprinciplesofportfoliochoice,assetpricing, The financialeconomicssequencebeginswith AssetPricing(taughtbyLeonid Kogan and offered betweentheEconomicsDepartmentandSloan. course formaster’s students. There arefivedoctoralcoursesinfinancialeconomics,alljointly in theworld.Undergraduateeconomicsmajors canenrollinMITSloan’s introductoryfinance The financegroupintheSloanSchooliswidelyregardedasoneofpremierdepartments and state-of-the-artmethodsinbothassetpricingcorporatefinance. Department providesstudentswithanoutstandingopportunitytolearnaboutcurrentinsights collaboration betweenthefinancegroupinSloanSchoolofManagementandEconomics Financial economicsisanactiveandimpactfulfieldofappliedresearch. Aclose Financial Economics Lawrence Schmidt Daniel Greenwald Antoinette SchoarAntoinette Maryam Farboodi David Thesmar Leonid KoganLeonid microdata sourcesforapprovedprojects. faculty toaccessconfidentialgovernment Research (NBER),thatallowsstudentsand the nearbyNationalBureauofEconomic Research Data Center (RDC),locatedat has anagreementwiththeCensus Bureau’s Data Center. The EconomicsDepartment Rotch Library, andthevirtualHarvard-MIT Information Systems Laboratory, housedat MIT economistsincludeMIT’s Geographic Other importantcomputingresourcesfor department’s extensiveIToperation. Meng Chau,andCarl Anderson supportthe Full-time professionals Andrew Dorner, and documents. provides user-accessiblebackupsofdatasets secure fiber-opticdatastoragesystemwhich infrastructure isbacked byarobustand manage long-runningjobs. This computing work withmassivedatasetsandeasily cluster. These systemsallow studentsto 300 processorhigh-performancecomputing research computingservers,includinga department providesmultipleLinux-based anywhere intheworld. Additionally, the using theirpersonalcomputersfrom or remotely, allowingstudentstoconnect be accessedfromon-campusterminals packages. software The labsystemscan a fullsuiteofeconometricandstatistical Windows-based virtualmachines,whichrun lab grantsstudentsaccesstopowerful learning andresearch. The virtual computing cutting-edge systemsdesignedtosupport MIT’s computingresourceswithitsown The EconomicsDepartmentsupplements at MIT Economics Computing

31 Economics at MIT 32 Economics at MIT and related topics by faculty and students in the Economics and relatedtopicsbyfacultystudentsintheEconomics Policy ofGlobalChange, whichsupportsresearchonglobalwarming CEEPR isaco-sponsoroftheJointProgramonScienceand discuss policyissueswithbusinessandacademiceconomists. agencies. The Center holdsbi-annualmeetingsandconferencesto organizations, andgrantsfromfoundationsgovernment is supportedbycorporations,tradeassociations,environmental and technologicalissuesrelatedtoenergytheenvironment and economics course. The Center investigates economic,regulatory, R. KnittelofMITSloan,whoteachesajointly-offeredenergy George P. ShultzProfessor of Applied EconomicsChristopher School, andtheMITEnergyInitiative. The DirectorofCEEPRis (CEEPR) issponsoredbytheEconomicsDepartment,Sloan The MITCenter forEnergyandEnvironmental Policy Research their research. by facultyandstudentsinMITSloanprovideidealapplicationsfor discoverthattheissuesstudied while EconomicsPhDstudentsoften in theEconomicsDepartmentprovideabasefortheirresearch, findthatgraduatecoursestaught MIT Sloandoctoralstudentsoften economic researchbybusinessschoolfacultyatMITandelsewhere. MIT Sloancoursesandseminarsserveasawindowintocurrent microeconomics strengthenthesetiesamongfacultyandstudents. and technologicalcompetition.Formal jointseminarsinapplied researchers inorganizationaldesign,businessstrategy, marketing, broader. MITSloanhasassembledaleadinggroupofeconomics in theappliedeconomicsandfinancefields,itissubstantially While theinteractionbetweenEconomicsandSloanisstrongest research opportunities. economics whohavetaken advantageofSloan’s financecoursesand hireMITgraduateswithdoctoratesin management firmsoften Business schoolsandprivate-sectorinvestment banks andasset faculty membersholdjointappointmentsinEconomicsandSloan. number ofotherdepartments,particularlyMITSloan.Several The EconomicsDepartmenthasacloserelationshipwith Economics aroundtheInstitute education throughouttheInstitute. turn hascontributeditsexperienceandexpertisetoresearch Economics Departmentfacultyandstudents. The Departmentin created valuableeducationalandresearchopportunitiesfor MIT’s excellence inengineering,science,andmanagementhas between thetwodepartments. the USanditschangesovertime,haveprovidedimportantlinks Frank Levy, whoisanexpertonincomeandwealthdistributionin William Wheaton, whoseworkfocusesonreal estatemarkets, and MIT’s UrbanStudiesandPlanningDepartment.Emeritusprofessors The EconomicsDepartmenthasalong-standingrelationshipwith leading scholarsinthefieldofpoliticaleconomy. graduates oftheEconomicsDepartment’s PhDprogramarenow policies canopenarichsetofresearchopportunities.Severalrecent recognizing andanalyzingthepoliticalfactorsthatunderliecurrent economics andpublicfinancehaveincreasinglycometorealizethat making inpoliticalsettings.Economistsfieldssuchasregulatory economic modelsandinsightstounderstanddecision between economicsandpoliticalscience.Itemphasizestheuseof Department. Research onpoliticaleconomy straddlestheboundary The EconomicsDepartmentalsohastieswithMIT’s Political Science of MIT. facilitated theinter-disciplinaryinteractionthatishallmark a post-doctoralvisitortothedepartment.Mostcritically, ithas faculty researchprojects,supportedgraduatestudents,andfunded economics research.MITEIhasprovidedsignificantfundingfor The MITEnergyInitiative(MITEI)isanotherimportantpartnerin experts intheSchoolofEngineering. the SchoolofScience,andwithemissionscontrolremediation management facultytoworkwithspecialistsonclimatechangein Engineering. The programprovides opportunitiesforeconomicsand Department, MITSloan,theSchoolofScience,and

Associate Department Head. Ford ProfessorofEconomics, MacVicar Faculty Fellow, David Autor, PhD, Harvard; Professor ofEconomics. David Atkin, PhD, Princeton; Ford ProfessorofEconomics. MacVicar Faculty Fellow, Joshua Angrist, PhD, Princeton; Professor ofEconomics. George-Marios Angeletos, PhD, Harvard; Associate ProfessorofEconomics. Nikhil Agarwal, PhD, Harvard; Institute Professor. of Economics; K. Daron Acemoglu, PhD, LondonSchool Professor ofEconomics. Alberto Abadie, PhD, MIT; Faculty

Professor ofEconomics. Economics; David Donaldson, PhD, LondonSchoolof Professor ofEconomics. Arnaud Costinot, PhD, Princeton; Ford International ProfessorofEconomics. Victor Chernozhukov, PhD, Stanford; Ford InternationalProfessorofEconomics. Ricardo Caballero, PhD, MIT; Assistant ProfessorofEconomics. Pentti Kouri Career Development Martin Beraja, PhD, UniversityofChicago; Ford InternationalProfessorofEconomics. Abhijit Banerjee,PhD, Harvard; Economics. Assistant ProfessorofEnvironmental 3M Career Development Economics; Clare Balboni,PhD, LondonSchoolof Holmström, Mike Piore, BobSolow, andBill Wheaton Emeriti: OlivierBlanchard, Fischer, Peter Diamond,RichardEckaus,Stanley Jeff Harris, Bengt Chernozhukov,Not Victor pictured: DaveDonaldson,Simon Jäger, DrazenPrelec,andProfessors

Management and Economics. Sloan DistinguishedProfessorof Robert Gibbons,PhD, Stanford; Professor ofEconomics. Samuelson Paul A. Drew Fudenberg, PhD, MIT; Professor ofEconomics. John &JennieS.MacDonald Amy Finkelstein, PhD, MIT; Senior LecturerinEconomics. Sara FisherEllison,PhD, MIT; Department Head. Professor ofEconomics, Gregory K.Palm (1970) Glenn Ellison,PhD, MIT; Alleviation andDevelopmentEconomics. Abdul LatifJameelProfessorofPoverty Esther Duflo,PhD, MIT;

33 Economics at MIT 34 Economics at MIT Professor ofEconomics. Elizabeth andJamesKillian(1926) Robert Townsend, PhD, Minnesota; Associate ProfessorofEconomics. Rudi DornbuschCareer Development Alp Simsek,PhD, MIT; Associate ProfessorofEconomics. Gary LovemanCareer Development Frank Schilbach,PhD, Harvard; Professor ofEconomics Castle KrobCareer Development Assistant Tobias Salz,PhD, New York University; Economics. of Applied Charles P. KindlebergerProfessor MacVicar Faculty Fellow, Nancy L.Rose, PhD, MIT; Economics. Science, BrainandCognitive Sciences,and Professor ofMarketing andManagement Management. for GlobalOperationsProfessorof Digital EquipmentCorporation Leaders Drazen Prelec,PhD, Harvard; Mitsui ProfessorofEconomics. James M.Poterba, D. Phil.,Oxford; Class of1922ProfessorEconomics. Parag Pathak, PhD, Harvard; Carlton Professor ofEconomics. Jane Berkowitz Carlton andDennis William Benjamin Olken, PhD, Harvard; Ford ProfessorofEconomics. Whitney Newey, PhD, MIT; Peter DiamondProfessorofEconomics. A. Stephen Morris,PhD, Yale; Associate ProfessorofEconomics. Anna Mikusheva,PhD, Harvard; Assistant ProfessorofEconomics. Development Silverman (1968)Family Career Simon Jäger, PhD, Harvard; Ford ProfessorofEconomics. Jonathan Gruber, PhD, Harvard;

MIT SloanSchoolofManagement. Economics andManagement, Assistant ProfessorofGlobal Valerie Karplus,PhDMIT; MIT SloanSchoolofManagement. Assistant ProfessorofFinance, Mark ShapiroCareer Development Judy C.Lewent(1972) and New YorkUniversity; Daniel Greenwald, PhD, MIT SloanSchoolofManagement. Associate ProfessorofFinance, Chicago, GraduateSchoolofBusiness; Hui Chen,PhD, Universityof MIT DepartmentofPolitical Science. Institute Professor Suzanne Berger, PhD, Harvard; MIT SloanSchoolofManagement. Assistant Professorof Applied Economics, of Economics; PhD,Charles Angelucci,Toulouse School Faculty TeachingAssociated Visiting ProfessorofEconomics. Jean Tirole, PhD, MIT; Affiliated Faculty Professor ofEconomics. Muhamet Yildiz, PhD, Stanford; Professor ofEconomics. Alexander Wolitzky, PhD, MIT; Professor ofEconomics. Sloan Fellows ProfessorofManagement. Michael D. Whinston, PhD, MIT; Robert M.SolowProfessorofEconomics. Iván Werning, PhD, Chicago;

MIT SloanSchool ofManagement. Economics, Franco ModiglianiProfessorofFinancial SchoolofEconomics; David Thesmar,PhD, Science Center. Director, StatisticsandData Engineering andComputer Science. Professor, MITDepartmentofElectrical Devavrat Shah,PhD, Stanford; MIT SloanSchoolofManagement. of FinanceandEntrepreneurship, Michael M.Koerner (1949)Professor Antoinette Schoar, PhD, Chicago; MIT SloanSchoolofManagement. Assistant ProfessorofFinance, Development Victor J.Menezes(1972) Career University ofCalifornia, SanDiego; Lawrence Schmidt,PhD, MIT SloanSchoolofManagement. Professor ofFinance, Robert C.Merton (1970) Jonathan Parker, PhD, MIT; MIT SloanSchoolofManagement. Assistant ProfessorofFinance, Career Development Albert andJeanneClear Christopher Palmer, PhD, MIT; MIT DepartmentofHistory. Professor ofHistory, MacVicar Faculty Fellow, University ofCalifornia, Berkeley; Anne McCants, PhD, MIT SloanSchoolofManagement. Assistant ProfessorofFinance, Eben Lazarus,PhD, Harvard; MIT SloanSchoolofManagement. Professor ofManagement, Nippon Telegraphand Telephone Leonid Kogan, PhD, MIT; MIT SloanSchoolofManagement. Economics, of Applied George P. ShultzProfessor University ofCalifornia, Berkeley; Christopher Knittel,PhD,

Dean Emeritus. Economics andManagement,Emeritus; Howard W. JohnsonProfessorof Richard L.Schmalensee,PhD, MIT; Economy, Emeritus. David W. SkinnerProfessor ofPolitical Michael J.Piore,PhD, Harvard; Economics andManagement,Emeritus. Elizabeth andJamesKillianProfessorof Paul L.Joskow, PhD, Yale; Economics, Emeritus. Paul Samuelson Professorof A. Bengt R.Holmström,PhD, Stanford; Economics, Emeritus. John andJennieS.MacDonaldProfessorof Hausman,D.Jerry Phil.,Oxford; A. Professor ofEconomics,Emeritus. Jeffrey E.Harris,MD, PhD, Pennsylvania; Professor ofEconomics,Emeritus. Stanley Fischer, PhD, MIT; Emeritus. Ford InternationalProfessorofEconomics, Richard S.Eckaus,PhD, MIT; Economics, Emeritus. Institute Professorandof Peter Diamond,PhD, MIT;A. Economics, Emeritus. Robert M.Solow Professorof Olivier J.Blanchard,PhD, MIT; Professors Emeriti MIT SloanSchoolofManagement. Professor ofFinance, Mizuho FinancialGroup School; Pennsylvania, Wharton Jiang Wang, PhD, Universityof MIT SloanSchoolofManagement. Associate ProfessorofFinance, Adrien Verdelhan, PhD, Chicago;

Studies, Emeritus. Professor ofEconomicsandUrban William C. Wheaton, PhD, Pennsylvania; Emeritus. Elisha GrayIIProfessorofEconomics, Peter Temin, PhD, MIT; Economics, Emeritus. Institute Professorandof Robert M.Solow, PhD, Harvard;

35 Economics at MIT 36 Economics at MIT University ofMichigan College ofLiterature,Science,andthe Arts Professor ofEconomics Gerald R.Ford SchoolofPublicPolicy of PublicPolicy Edward M.GramlichCollegiate Professor Academic Affairs Provost andExecutive Vice Presidentfor EC ’84 Professor SusanM.Collins Company, Ltd. Taiwan SemiconductorManufacturing Founder andChairman,Retired ’52 ME,ME’53,’55 Dr. MorrisChang Castle Harlan,Inc. Chairman andChiefExecutive Officer ’63 EC Mr. JohnK.Castle Evercore Senior Advisor ’69 MG Mr. Bovin Denis A. The BrookingsInstitution Distinguished Fellow inResidence EC ’79 Dr. BenS.Bernanke Goldman Sachs&Company Managing Director ’82 EE Mr. Avanessians ArmenA. ’95 AA Mr. Frank R. Ahimaz Members Evercore Founder andSeniorChairman Mr. Roger C. Altman Chair 2020 arelistedbelow. Department Visiting Committee asoffall The membersoftheMITEconomics Visiting Committee

Silk Road FinanceCorporation Chief Executive Officer EC ’94 Dr. ShanLi Merck &Co., Inc. Chief FinancialOfficer, Retired Executive Vice Presidentand GM ’72 Ms. JudyC.Lewent Beacon Capital Partners Chairman andChiefExecutive Officer Mr. Alan M.Leventhal Fidelity Investments Chief Executive Officer Ms. Abigail P. Johnson Ardinall Investment Management Chief Executive Officer ’02 EC,GM Ms. MariaS.Jelescu New YorkUniversity Leonard N.SternSchoolofBusiness and Finance William R.BerkleyProfessorofEconomics Dean Emeritus EC ’97 Dr. Peter B.Henry BlackRock, Inc. Chief RiskOfficer ’78 MG,SM’82,MG’84 Dr. Bennett W. Golub Bain &Company, Inc. Chairperson Ms. OritGadiesh University ofCambridge Queens’ College President Allianz Group Economic Advisor Chief Mr. El-Erian Mohamed A. Northwestern University Kellogg Public-PrivateInitiative(KPPI) Faculty Director Kellogg SchoolofManagement of Finance James R.andHelenD. Russell Professor EC ’91 Professor JaniceEberly

Google, Inc. Chief Economist ’69 EC Dr. HalR. Varian Massachusetts Instituteof Technology Retired Executive Vice Presidentand Treasurer, GM ’76 Ms. Theresa M.Stone Agman Partners Director Chairman, Co-Founder, andManaging ’68 MG Mr. JeffreyL.Silverman Cottonwood Management,LLC Chief Executive Officer ’00 EC Mr. Alexander H.Shing University ofCalifornia, Berkeley Department ofEconomics Walter HaasSchoolofBusiness A. Professor oftheGraduateSchool Dr. Carl Shapiro Accenture Strategy Consultant ’18 PH,PO Ms. SarahMelvin Brigham YoungUniversity Marriott SchoolofBusiness Service andEthics George W. Romney InstituteofPublic Department ofFinance Dean andMarriottDistinguishedProfessor EC ’93 Professor BrigitteMadrian One William StreetCapital Management Chief OperatingOfficerand Partner ’88 EE,EE’89 Mr. Locher Kurt A.

37 Economics at MIT 38 Economics at MIT 39 Economics at MIT