Graduate Connection
Vol. 4 No. 2 December 1998 INSIDE Happy Holidays! Asher Wolinsky has been named the Alfred W. Chase Professor of Business From the Department Chair 1 Institutions. Teaching Matters 2 The faculty and staff extend their best Burt Weisbrod has been named to the From the Director of wishes for a happy holiday season. The National Advisory Research Resources Graduate Studies 4 University will be officially closed on Council of the National Institutes of From the Graduate Thursday December 24, Friday 25, Health. Joe Altonji was recently Secretary's Office 5 Thursday 31, and Friday January 1. The appointed to the Committee on National Funding 5 winter quarter commences on Monday Statistics of the National Research Council. Notes 6 January 4. Chuck Manski was appointed Chair of a new National Research Council Committee on Data and Research for Policy on Illegal From the Department Drugs. Joel Mokyr has been elected to the Chair . . . executive committee of NBER. Bruce Meyer has been reappointed to the editorial board of the Journal of Public Robert Eisner (1922-1998) Economics, and Joe Ferrie serves on the editorial board of the Journal of Economic Robert Eisner, Kenan Emeritus History. Dale Mortensen is the founding Professor of Economics, passed away on editor of the new Review of Economic November 25. Bob was a member of this Dynamics. Martin Eichenbaum has been department since 1952, and former elected to be a fellow of the Econometric president of the American Economic Society. In addition he has become an Association. While he retired from associate editor of the Journal of Monetary graduate teaching in 1991, he continued to Economics, the Review of Economic work on issues of national importance and Dynamics, and the Journal of was one of our most distinguished, active, Macroeconomics. and visible members. His death is a major loss to us all. The Staff changes University will be organizing a memorial service early in the new year. I will inform you when I know the date. Paula Nielsen has left the University. Lavonne Payne has moved into room 124, and Scott Zacher has replaced her as Faculty changes Undergraduate Secretary. We have interviewed for a new staff member for our During the winter quarter Gillian main office. We should be able to Hutchinson will be visiting with us. She announce the successful candidate's name is a 1982 doctoral graduate of this and starting date soon. In the interim, Department, and latterly was a faculty thanks to Grecca Walker who has worked member at Queen Mary College of the as a substitute in our main office during the University of London. She is a labor fall. economist, and will be teaching in our Congratulations to Deidra Morgan, an Graduate Connection undergraduate and MMSS programs. Economics staff member who works in the Department of Economics/NU David Haddock who is a faculty member Math Center, on ten years of service to at the NU Law School has had an office in NU. the Department for some time. Starting from this winter quarter he will be teaching Distinguished Teaching Assistants Published 3 times a year by: our revived undergraduate Law and Economics course. David can be found in room 208 (1-8222). At the start-of-year buffet on October 7, Department of Economics I was pleased to award the Distinguished Northwestern University Teaching Assistant Awards for 1997-98. 2003 Sheridan Road Recent honors The winners of a certificate and a year's Evanston, IL 60208-2600 subscription to Econometrica were Two faculty members have received Michelle Zaharchuk, Una Okonkwo (both Ian Savage, editor named chairs. Michael Whinston has re-awards), Paulo Santiago, Henry Siu, Jim 847-491-8241 been named the Robert and Emily King Sullivan, Craig Peters, Federico Ciliberto, [email protected] Professor of Business Institutions, and Randal Watson and Ben Chabot. Chuck December 1998 Graduate Connection O 2
Moul and Jim Stewart were also selected Listed below are the funding source and descriptions of information and knowledge, as Teaching Assistant Fellows, and did an topic of new or extended grants. sorting, games of incomplete information exemplary job of leading the training with applications to bidding, bargaining sessions for new Economics and Math Joe Altonji and Chris Taber (NICHD, the and signaling, implementation and T.A.s in September. effectiveness of Catholic schools and mechanism design, and reputation. single sex schools) Departmental funding Eddie Dekel-Tabak (NSF, sequential voting) Economics D16-2 The Graduate School and WCAS have Jeffrey Ely (NSF, Nash equilibrium and Advanced Macroeconomics agreed to provide funding for additional the evolution of preferences) Professor Bassetto TAships in 1998/99 and 1999/00 to cover Joe Ferrie (NSF, longitudinal micro data TTh 1-3 132 AAH the "bulge" in qualified graduate students for the study of long-range changes in in years 2 through 4. In the near future, we economic mobility in the U.S. 1850- This course will study some applications will be issuing current TAs with revised 1990) of game theory to macroeconomics. The contracts extending your funding through Robert Gordon (NSF, problems in the main topic is the literature on time the spring quarter. We remain committed measurement of prices and productivity) consistency and sustainable plans, focusing to funding students who meet our Bruce Meyer (NSF, the effect of welfare both on its tools and on its issues. published funding guidelines and who and taxes) Tools: determination of an optimal perform satisfactorily in the classroom. Leon Moses (Govt of Panama, pricing of time-consistent policy as a fixed-point the Panama Canal) problem; Abreu, Pierce and Stacchetti's Building expansion Robert Porter (NSF, empirical studies of algorithm; recent extensions. bidding and entry) Issues: sustainability of sovereign debt Some more details have become Ian Savage (U.S. DOT, economics of and fiscal policy; international capital available on the expansion of Andersen transportation safety) flows; time-consistent monetary policy and Hall. As previously announced our new Asher Wolinsky (NSF, topics in the inflation. space will consist of the existing third floor organization of firms and markets) We may also devote some time to of Andersen, the space occupied by KGSM papers that use political economy in Alumni Relations in the connector building recursive general equilibrium problems to with Leverone, plus the third floor of a new Teaching Matters . . . address the same issues. Evaluation will "L" shaped addition that will be built above be based on class presentation of a paper our existing space on the first floor and will Schedule change from the literature and a final exam; or extend east past Coon Forum. The addition writing a paper. The reading list will contain selected readings from recent will feature a large bright seminar/class Alan Taylor's D98 course scheduled for room which will seat 60. papers and a yet to be published book by the spring has been cancelled. Students Thomas J. Sargent and Lars Ljungqvist. Current plans are that we will be able to wishing to complete their history provide carrel and office space to 65 requirement this year are directed to graduate students, as opposed to the current Professor Ferrie's American Economic 50. The new carrel rooms will generally Economics D20-1 History course (D20-1) which is offering in American Economic History have windows. Our existing computer the coming winter quarter. room will also be extended to the south. Professor Ferrie TTh 11-1 132 AAH Construction will start in the summer of Start of winter quarter 1999, although it is currently unclear whether it will be at the start or the end of The course examines several topics in the summer. The new and reconfigured The start of winter quarter overlaps with the economic history of the United States. space will be available in December 2000. the American Economic Association The first goal of the course is to make During the intervening 18 months, our annual meetings in New York. The only students aware of research on long-term north facing offices on floors 2 and 3 plus consequent change in schedule that we are factors in the development of the American the first floor space will be closed. We aware of is that Professor Matzkin's D80-2 economy that are often overlooked in the will have to move some faculty plus our class will have its first meeting on contemporary focus of other courses: the administrative offices into currently Thursday, January 7. It is possible that rise of institutions, the appearance of graduate student space on floors 2 and 3. some other graduate courses may not meet markets for labor and capital, the growth The University has promised us space in on Monday or Tuesday of the first week of and health of the population, the the Cresap wing of Swift Hall for graduate the quarter, so look out for announcements. development of new technologies, the student offices. Planning for the temporary distribution of income and wealth, and the relocation is only in an early phase. I Course descriptions - winter 98/99 changing role of the government in the should be able to let you know more details economy. as they emerge over the coming months. Economics D14-1 The second goal is to familiarize Economics of Information students with the methods and materials of New and renewed faculty research Professor Wolinsky economic history. The course will require MW 9-11 132 AAH extensive input from the students, as the grants latter goal cannot be achieved without The course will survey central topics in considerable hands-on experience. The A large number of Northwestern faculty the economics of information. Among the emphasis is on students' participation in members are supported by research grants. topics considered are: search theory, formal discussions and students' demonstration of December 1998 Graduate Connection O 3 the mastery of the tools of economic The emphasis will be on the formulation Broadly speaking, the course will study history in evaluating the materials and testing of game theoretic models, and the bases of competitive advantage in a presented in class and in completing a especially on recent developments in the market; the conditions that facilitate significant piece of original research using field. Evaluation is based on several sustainability of competitive advantage and primary materials. problem sets and a final exam. The lead to the persistence of profitability; the Grades will be based on participation in reading list includes selected readings, sources of heterogeneity among firms; class discussions (30%), four short (6-8 many in a course packet, and a required innovation and the development of new page) papers (30%) and a final paper text The Theory of Industrial Organization sources of advantage over time; the (40%). There is no textbook for the course, by Jean Tirole (MIT Press, 1988). analysis of strategic commitment; and the but students with a weak background in strategic effects of organizational structure. U.S. history may wish to consult Jonathan Specifically the course will emphasize Hughes and Louis P. Cain, American Economics D81-2 topics including entry and exit, research Economic History (4th ed., Harper Collins, Econometrics and development, network externalities and 1994). A packet of required readings will Professor Manski standardization, product differentiation, be available from the Economics MW 1-3 132 AAH strategic impacts of vertical Department office. All of the readings are integration/vertical restraints, and strategic required. This graduate field course in impacts of horizontal integration. Some econometrics examines the distinct ways in attention will also be paid to the policy which statistical and identification issues associated with these firm behaviors. Economics D36-1 problems limit the conclusions that may be The final part of the course will cover Public Finance drawn in empirical economic research. topics on strategic pricing and price and Professor Meyer The focus is on identification problems that non-price allocation mechanisms under TTh 9-11 132 AAH arise in attempts to predict outcomes of uncertainty. Specific topics will include interest, and on the reasoned use of price discrimination, pricing under demand This is the first course in a two quarter structural assumptions to cope with such uncertainty, inventory management, and sequence covering some of the areas of problems. queuing, with some emphasis on the most active research in public economics. Our starting point is the modern theory relationships between industry This quarter will focus on the expenditure of nonparametric regression under random organization, i.e. vertical separation, and side of public economics. The topics sampling. From there we go on to study these issues. covered will include rationales for prediction when the available data are government intervention, and examinations subject to common observational problems. of the effects of the following programs: Considerable attention is given to problems MES D60-2 Aid to Families with Dependent Children of censored outcomes and/or regressors Foundations of Managerial Economics (II): (AFDC), Temporary Assistance for Needy that arise in survey research, in the analysis Dynamic Optimization Families (TANF), Medicaid, Food Stamps, of treatment effects, and in the study of Professor Sandroni Social Security, Disability Insurance, simultaneous equations. Time TBA TBA Unemployment Insurance and Workers' We then examine inferential problems Compensation. While the emphasis will be arising when the data are generated by This course provides a rigorous primarily empirical, we will begin each randomized experiments, response-based introduction to the tools, techniques, and topic with the main theoretical work in that sampling processes, and sampling concepts of game theory. We will cover 2 area. processes with measurement error. Each weeks of cooperative game theory and the Evaluation in the course will be based student will be required to write a remaining 8 weeks of the course will be on class presentations and a paper. The theoretical or empirical research paper devoted to mainstream non cooperative readings will mostly be from articles in a relevant to the content of the course. game theory: extensive and normal form course packet, although I recommend the representations of games, dominance and purchase of the 1998 Green Book rationalizability, Nash equilibrium, (Washington, DC: USGPO). MES D49-2 correlated equilibrium, persistence, tremble Competitive Strategy and Organizations based refinements in the normal form, Professor Dana backward induction, sequential equilibrium Economics D50-1 Time TBA 619 LEV and extensive form perfect equilibrium, Industrial Organization & Prices belief based refinements and forward Professor Porter This is the second of two required induction, stability, repeated games and MW 11-1 132 AAH courses on the economics of strategy in the folk theorems, cheap talk and Managerial Economics and Strategy Ph.D. renegotiation, purification of mixed The first quarter in the two quarter program. The course will cover topics in strategies. graduate industrial organization sequence. the theoretical industrial organization that The textbooks used will be Fudenberg An introduction to industrial organization are relevant to Ph.D. students interested in and Tirole Game Theory; Myerson Game theory and empirical analysis. Topics research applications to industrial Theory; and Mas-Colell, Whinston and include: price and output competition; organization and business strategy, and to Green Microeconomic Theory. price discrimination; entry and the students interested in dissertation topics determinants of market structure; entry, that will be of interest of particular interest growth and turnover; entry deterrence; to business strategy departments within product selection; and advertising. business schools. December 1998 Graduate Connection O 4
Finance D85-1 immediately. Third-year students should 1999 spring prelim dates Asset Pricing be making plans for their second Professor Heaton presentation. Remember that failure to Wed June 16 Macroeconomics Organizational meeting at 5PM make two presentations by the end of the Wed June 23 Econometrics Wednesday, January 6 in 430 AAH spring quarter will prevent you from being Wed June 30 Microeconomics admitted to candidacy, and hence receiving All examinations will be held 1PM - 4PM. This course provides an introduction to fourth-year funding. the theory of financial economics. It Please remember that you need two 1999 fall prelim dates covers: choice under uncertainty, arbitrage faculty members to read your paper and and state prices, mean-variance analysis attend the seminar before "signing off" on Tues Sept 7 Macroeconomics and the Capital Asset Pricing Model, the form available from the Graduate Wed Sept 8 Econometrics dynamic asset valuation and heterogeneous Secretary's office. Attendance at E01 Fri Sept 10 Microeconomics information. Evaluation is based on a final seminars is compulsory for all third year All examinations will be held 1pm - 4pm. exam and homework and class students. Permission for absence should be It is our intention that results will be participation. requested from the organizers. You should available so that financial aid decisions can also register for E01 all year but register on be made prior to the start of the fall quarter. a P/N basis. Letter grades will not be It is likely that T.A. training in 1999-00 Statistics D54 given. will take place on Wednesday, September Time Series Analysis Second year students should start 15. First years who believe that they might Professor Huerta attending some E01 seminars so that they be T.A.s, and do not have to retake any WF 9-10:30 2006 Sheridan can appreciate the acceptable standard for prelims, should be back in Evanston by field papers. Tuesday evening, September 14. This course offers an introduction to Full information on our E01 time-series methods from both a theoretical requirement, and practical information, is and applied perspectives. Topics to be available on our web page. Prelim policy discussed are exploratory techniques for time series (autocorrelations, periodgram, 1998-99 quarter dates Last year the faculty voted to clarify our etc.), spectral estimation, Autoregressive policy regarding retaking preliminary Moving Average models, inference on examinations. The full text of that Winter: Mon January 4 - Fri March 19 document is posted on our web page. The Dynamic Linear Models and forecasting. Spring: Mon March 29 - Fri June 11 Modelling aspects will be covered through implications for first year students can be summarized as follows: the analysis of different data sets arising in 1999-00 quarter dates the context of the physical sciences, • Exam "attempts" are counted sequentially, irrespective of whether you psychology, economics and finance. Fall: Tues Sept 21 - Fri Dec 10 It is assumed that the student is familiar sit a particular exam. Winter: Mon January 3 - Fri March 17 • Students can retake in September any with estimation and hypothesis testing from Spring: Mon March 27 - Sat June 9 both a Frequentist and Beyesian exam they fail this coming June without perspective. Experience in computing is a needing to petition the faculty. plus. The text will be Martin Tanner's • Students who fail to pass all three parts Tools for Statistical Inference: Methods for From the Director of of the exam by September will only be the exploration of Posterior Distributions Graduate Studies . . . permitted to remain in the program if (a) and Likelihood Functions (Springer they have passed two exams, or (b) Verlag, 1993). achieved "good grades," defined as no Information on funding grade of B- or lower in any of the core opportunities sequences. E01 seminar The seminar will meet on Wednesday I have recently established a web page First year foreign students and Thursdays as needed at 5PM in the which presents information on funding Seminar Room (Andersen 132). There will opportunities for graduate students, other Foreign students from non English- be one presentation each day and the than the TA and RA opportunities within speaking countries should have either taken seminar will last for one hour including the the Department. The web page will be the Test of Spoken English once by now, question-and-answer period. The sign-up updated regularly and contains links to or have registered for a definite date. Take sheet for the Winter Quarter is now other web sites and PDF documents that the TSE early and often! It's the only way available in the Graduate Secretary's office. give further information and contain the Graduate School will allow the Professor's Eichenbaum and Christiano will application forms for you to download. Department to award you a Teaching be organizing the seminar. The web page can be accessed from the Assistantship. For admission to candidacy students "Information on the Ph.D. program" need to make two E01 presentations. subpage of the Department's website. I Funding guidelines Typically these are made in the third year, have also highlighted some upcoming one in the Fall and the other in Winter or deadlines in the Funding section of this Last year, John Panzar brought together Spring. Therefore third-year students newsletter. in one document the Department's existing should have already have presented the rules for funding continuing graduate paper they submitted last summer. Those students with TAships. This document is who have not done so should sign up posted on the Department's web page. I December 1998 Graduate Connection O 5 urge you all to read it and become familiar their earnings on their income tax returns - Funding . . . with our policies. minus the cost of books, supplies and Northwestern University Health Insurance TA periods in residence premiums. Second year students who were Sloan awards on a fellowship for the 1997-98 year need to report their earnings from January An excellent form of financial support Each quarter that you are a TA, you for those students in the final stages of must be in Evanston from the first Monday through May of 1998 - less books and supplies. their thesis research is the Alfred P. Sloan of classes until the Monday after Foundation dissertation fellowships. These examinations end (which is the day that The University does not issue W2 forms for those students on fellowships, you are fellowships offer both a generous stipend grades are filed). In the past people have and tuition payment. The Sloan left early and arrived back late, in some required to report these funds on your own. International students may have had Foundation has once again requested the cases without informing the instructor they Department to nominate three students for are working for. The Department will not deductions taken out and will receive special tax forms from the university. dissertation fellowships. tolerate this. You must arrange your NOW is the time to begin developing an vacation airline flights so as to be able to Important dates irresistible 5-page proposal to enter in the fulfill your duties. Failure to do so will be Department's internal competition. Expect grounds for rescinding your TAship. an early March deadline for submission of For 1998-99 the dates for which you must December 30 is the deadline for submitting signed Admission to your draft proposal and faculty references, be in attendance are: so NOW is also the time to gather your Fall: Until Mon Dec 14 Doctoral Candidacy Forms to the Office of The Graduate School so that you are courage and approach faculty members Winter: Mon January 4 - Mon March 22 with your research ideas. Spring: Mon March 29 - Mon June 14 admitted prior to the Winter Quarter. However, students who have completed SSRC summer institute residency and are registered for E98 at Transportation dissertation awards the beginning of Winter Quarter may Last summer four of our graduate submit completed Ph.D. candidacy The Transportation Center offers a students (Ariel Burstein, Avi Goldfarb, forms to the Graduate School by stipend plus tuition award to eligible Robert Vigfusson, and Zhixiong Zeng) January 11 for admission to candidacy students who are in the final twelve months attended the SSRC/MacArthur Summer and change of registration to E99. of their thesis research. Research in the Institute. All found the program very January 8 the admission to candidacy for area of transportation, broadly defined, and worthwhile. The 1999 Summer Institute the master's degree in Winter Quarter is public utilities is eligible. Applications, will be held on August 2-7 in Virginia. I due in the Office of The Graduate including letters of support from your encourage those of you who might be School. faculty advisor, are due with the graduate interested to talk with the 1998 participants April 2 is the last day to file with the secretary at the Transportation Center by and to consult our new funding web page, Graduate School for "Admission to March 31. For further details talk to Ian where you will find details on the Summer Candidacy." This is for students who Savage. Institute, application forms and fellowship expect to receive the master's degree in information. June. This is also the last day to return NU dissertation year fellowships the "Application for a Degree" for all candidates who expect their degrees to The Department expects to nominate be awarded in June. two students for the Graduate School's From the Graduate May 14 is the deadline for submission of Dissertation Year Fellowship (DYF) Secretary's Office . . . completed dissertation and all competition. This is an internal NU supporting materials to the Graduate process involving departments and Financial aid forms School. This deadline is for students programs in the humanities and social who expect to receive the Ph.D. degree sciences. Twenty fellowships are in June. available. Last year we were able to win Renewal FAFSA forms should be two of these. To apply you need to: arriving by mail sometime in December to May 21 is the last day for receipt of "Final Examination Report" and any "Change • Prepare a brief (<1500 word) those of you who have previously filed description of your dissertation, your these financial aid forms. If you have of Grade" forms for D99 Projects or E90 Research. This pertains to students who progress to date, and timetable to moved, the post office will not forward it; completion. you will have to obtain and complete a new expect a master's degree to be awarded in June. • Obtain two NU faculty references. form. You will be able to pick up a Completed nominations should be given FAFSA form from the Financial Aid office If you have any questions about any of to Ethel M. King by Monday February 1. at the Graduate School after January 14th. Application forms and further information The best thing to do is wait until after you this information please stop by the graduate office. are available on our new funding web have filed your income tax returns for 1998 page. The selection committee places a before filling out these forms. high premium on projects which are (or can be made to seem) intelligible to the Income tax issues layperson. In general the Department will not All first-year students who have a consider applicants who have not been University Fellowship will need to report admitted to doctoral candidacy, unless their December 1998 Graduate Connection O 6 advisors guarantee that the thesis will be candidates to attend an interview. The completed by September 2000. Being decision will be solely based on teaching nominated for the internal NU DYF will ability, and not on financial necessity. not disqualify someone from becoming one Completion of all prelims is required. of the Department's Sloan nominees. Priority will be given to those students who However, because Sloan and NU have are making good progress in their degree, different criteria for awarding fellowships, as defined by the Department's Funding a separate selection procedure will be used Criteria for Continuing Graduate Students. by the Department. Notes . . . NU alumnae dissertation fellowships Office accommodations
This new award offers a year of stipend We have a shortage of graduate office and tuition to women who will be carrels. If anyone is currently allocated a registered for E03 in 1999/00. Special space but is not using it, please let Ian preference will be given to those who have Savage know so that he can arrange with had to interrupt their academic careers. one of your fellow students to share the Information is given on the new funding space. web page, along with an application. Note that the deadline is January 22. Personal copy accounts
SSRC/MacArthur fellowships Graduate students can obtain a personal account on our copy machines. You will There is a February 3rd deadline for be billed at the end of each month at 5¢ a applying for 1999's SSRC/MacArthur copy. To obtain an account please send an fellowship program, which is linked to (but e-mail to the Assistant Chair not limited to) participation in the summer