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Editor Joshua Rosenbloom

Managing Editor/Layout Deborah Gruca

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Greetings from Dr. Rosenbloom continued from page 1

In April, Professor Cathy Kling was named by Iowa Economics Club had the opportunity to have lunch State President Steven Leath to the President’s Chair with and meet Berkshire Hathaway CEO Warren in Environmental Economics. (Last year, Kling was Buffett. The Ag Business Club, which has won the elected to the National Academy of Sciences, only the AAEA’s Outstanding Student Chapter Award ten eleventh faculty member, and the first woman at Iowa of the last 12 years, received an unprecedented State to receive the honor.) Professor Quinn Weninger endowment for club activities. Read more about was named the John F. Timmons Endowed Professor in those and other student successes and research Environmental and Resource Economics (page 2). starting on page 8. Two assistant professors, Georgeanne Artz and And, of course, don’t forget to see what some of Lee Schulz, received university awards this year. Artz our illustrious alumni are up to starting on page 16. won the Award for Outstanding Service; Schulz As you can see from this brief summary and from received the Early Achievement Extension and the stories in this newsletter, there is a great deal going Outreach Award. On page 4 you’ll find their stories. on in and around Heady Hall. We appreciate your Our students have also had an eventful year. ongoing interest in the department, and would love to For starters, last October twenty members of the hear from you if you have news to share. °

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24 | ISU Department of Economics Update Department of Economics Spring 2016

Greetings from the Chair

igns of spring are everywhere around campus: individually irrational, the tulips are up, the redbuds are in bloom, and but collectively students are preparing for final exams. It is hard beneficial. I am thus Sto believe that we are coming to the end of my first very much aware academic year at Iowa State. of the debt I owe As John Schroeter informed you in last year’s to my predecessors newsletter, I came to Iowa State after nearly three in the position of decades on the faculty at the University of Kansas. department chair, No matter how carefully considered, moving to a new for it is the fruits of employer and a new community represents something their efforts that I of a leap of faith. By the time I accepted the offer of am reaping. Most the position of department chair, I knew a good deal immediately, I am about the strong research and teaching reputation grateful to John of Iowa State’s Economics Department, and had Schroeter, who served learned about its long and impressive history. But a as interim chair for Joshua Rosenbloom, Chair department is so much more than that. four years, and to Since arriving in Ames last August I have GianCarlo Moschini, who preceded him. As such, I discovered the more intangible things that make the want to extend my thanks to them for taking such department special. I have been welcomed warmly by good care of the department. all of my new colleagues, not just professionally but As a newcomer to Iowa State and to Ames, much socially; and I have observed firsthand the sense of of my fall semester was spent learning my way community that extends well beyond a shared goal of around, both literally and metaphorically. During advancing the frontiers of economic science, teaching this time, I met individually with every member in economics at both the undergraduate and graduate the department. Learning about the full range of level, and sharing our expertise to benefit the citizens activities of our faculty and staff was both inspiring of Iowa, the United States, and the world. and humbling. Among other things, they are involved In the language of economics, one can describe in supporting undergraduate learning communities, this sense of community as a “public good.” And, as leading travel courses to far-flung destinations, we know, there is a tendency to underprovide public mentoring graduate students, offering advice to the goods and to free ride on others’ contributions. One government of the State of Iowa, and consulting on of the important functions of a department chair is economic development in Ghana. I cannot possibly to discourage free riding, creating an environment tell you about all that has happened in and around that encourages individuals to act in ways that are Heady Hall over the past year. But I do want to share with you a few highlights. University Professor Peter Orazem was instrumental Awards and acknowledgments...... 2 in arranging speakers for the Economic Forum Lecture Ivan Rudik: The costs of climate change ...... 6 Series this year. Heidi Shierholz, Chief Economist, U.S. Faculty profile: Peter Orazem...... 7 Department of Labor, and Joshua Lerner, Harvard Graduate student research...... 8 University, along with invited alumni, came to Iowa Graduate student achievements...... 10 State as a result of an anonymous grant. You’ll see Undergraduate student achievements...... 11 more about that on page 7. Undergraduate student research ...... 14 Alumni news...... 16 Faculty & staff updates...... 21 Continued on back page Awards & Acknowledgements

Kling Named to President’s Chair in Environmental Economics

her exemplary performance and Development. Last year, she contributions to natural resources became Iowa State’s first female and environmental economics. faculty member to be elected to Kling was honored April 15 at the National Academy of Sciences. a medallion ceremony during The President’s Chair in the ISU Foundation Governors Environmental Economics was luncheon. established with support from the Catherine Kling Kling is a Charles F. Curtiss Howard T. Lanan and Evelyn M. Distinguished Professor in Lanan Endowment for Excellence. resident Steven Leath has Agriculture and Life Sciences, Howard Lanan was a 1938 Iowa Pnamed Catherine Kling professor of economics State graduate in agriculture; the to the President’s Chair in and director of the Center Lanans farmed for more than 60 Environmental Economics for for Agricultural and Rural years in Illinois. °

Weninger Named Endowed Professor

SU Professor of Economics theory and econometric methods IQuinn Weninger has been named to improve the management of the John F. Timmons Endowed natural resources,” said Weninger. Professor in Environmental and “Much of my work features market- Resource Economics. based approaches for managing The Timmons Professorship was resources-based industries, such as established by a $200,000 gift from property rights-based approaches his wife, Dorothy L. Timmons, and in marine fisheries. My recent son, John L. Timmons, in memory work addresses management of John, who served Iowa State challenges in multiple-species University for more than 37 years fisheries under joint ecological and as a professor of economics and economic interaction. This research Quinn Weninger major professor to 140 graduate contributes to a growing literature students. Professor Timmons was on ecosystem-based fisheries colleagues, and ISU have entrusted a pioneer in the field of resource management, which seeks a more me with the responsibility of and environmental economics, holistic approach to managing carrying out the Timmons’ vision. I receiving numerous professional marine resources.” am truly grateful for this award.” honors and awards for his work. His other recent work studies Joshua Rosenbloom, chair, Quinn Weninger, an environ- rational search and learning said of the nomination, “The mental and natural resource in uncertainty production Economics Department greatly economist, joined Iowa State in environments, market-based appreciates the Timmons family’s 2000. He earned a bachelor’s in forest approaches for managing bycatch of gift that has made possible this science in 1989 from the University unwanted or prohibited species, and endowed position, which affirms of Alberta in Edmonton, Alberta, capital investment motives, market their belief in the value of academic and a doctorate in agricultural performance, and rent redistribution research and the importance of and resource economics from the under cap-and-trade regulations. the continuing pursuit of new University of Maryland in 1995. Weninger said, “I am honored knowledge in environmental and “My research uses economic that the Timmons family, my resource economics.” °

2 | ISU Department of Economics Update Edwards and Jolly Receive Faculty InspirationAwards

meritus Professors William EEdwards and Robert Jolly’s, contributions to the fields of farm and agribusiness management span several decades, including ground- breaking Iowa State University Extension work that provided assistance during the 1980s U.S. Farm Crisis. William Edwards Robert Jolly Edwards and Jolly each received the Distinguished winning Ag Business Club and more than 30 years, Edwards and Service to Agriculture Award co-authored the popular textbook Jolly together provided leadership from the American Society Farm Management. for the Agricultural Credit of Farm Managers and Rural Jolly has focused his teaching School, an annual educational Appraisers, as well as the ISU and research on international event sponsored by Iowa State College of Agriculture Award programs, providing training and University and the Iowa Bankers for Excellence in International education for the agricultural Association. Both men have Agriculture, among other honors. sectors of transition economies in made an indelible imprint on the Edwards spent 10 years as eastern Europe, the former Soviet lives of their former students. ° faculty adviser to ISU’s award- Union, China, and India. For

Alexander Receives Outstanding Teaching Award

erence Alexander, senior the last class taken by seniors. Tlecturer, received a 2015 Over that time, thousands of Outstanding Teaching by a students have come to appreciate Lecturer Award at the Liberal Arts the fundamentals of market and Sciences Fall Convocation and economics and scores of them Awards Ceremony in September at have decided to major or minor the Memorial Union. in economics. Outstanding Teaching by a He has demonstrated that Lecturer recognizes lecturers or high-quality instruction can excite senior lecturers for outstanding interest without compromising teaching performance in scholarship. In his classes and undergraduate education over an his advising, Alexander has extended period of time. influenced careers, enriched lives, For 21 years, Alexander opened doors, enflamed passions has taught economics at all for learning, and embodied the levels at Iowa State, from the Iowa State theme of academics as Terence J. Alexander first class taken by freshmen to an adventure. °

ISU Department of Economics Update | 3 Awards & Acknowledgements Artz Awarded for Outstanding Service

eorgeanne Artz received Stone on retail trade and rural Gthis year’s Outstanding development issues. She accepted Service in Student Recruitment a position as a visiting assistant and Retention Award given by professor in 2010, and became the College of Agriculture and an assistant professor of Life Sciences. She also won the economics in 2013. Impacting Iowans Award from Artz has been an academic Iowa State University Extension adviser for the Agricultural Business in 2014. Club for three years. Under her While studying for her Ph.D. guidance, the club has continued its at Iowa State, she worked as an string of outstanding club awards. extension program specialist, She also coaches teams to prepare working for Roger Ginder on for academic quiz bowls and fosters Georgeanne Artz agribusiness issues, and Ken undergraduate research that has led continued on page 22 Schulz Receives CALS Award

ssistant Professor Lee Schulz economics and risk management. Areceived the 2016 Early Schulz grew up on a diversified Achievement Extension and crop and livestock farm in Outreach Award given by the Rosholt, a small town in central College of Agriculture and Life Wisconsin. With this background, Sciences. pursuing an agricultural business Since joining the faculty major in college seemed like a in 2012, Schulz has provided natural fit. leadership and extension-focused “We were mostly involved programming on the critical in corn, hay, and beef cattle issues facing Iowa’s livestock production but also, at times, had and meat industries, such hogs, sheep, horses, and layers. as animal identification and The farm was a hobby and our traceability, market analysis, family also owned and operated Lee Schulz consumer demand, animal disease continued on page 22

Harl Elected Foundation Governor

eil Harl, retired which include audit, awards, Ndistinguished professor, was governance, communications, recently elected as a governor finance, and investment. of the Iowa State University Harl joined the faculty at ISU Foundation, which is dedicated to as an assistant professor in 1964, securing and managing gifts that with promotion to full professor benefit Iowa State University. in 1967; he was made a Charles The governors, who are F. Curtiss Distinguished Professor appointed for life, meet twice per in Agriculture in 1976. Before he year. Many governors serve on the retired in 2004, he had served on Neil Harl foundation’s volunteer committees, six federal commissions. °

4 | ISU Department of Economics Update Moschini Named WAEA Fellow

ianCarlo Moschini, Pioneer implications of his research are a GEndowed Chair in Science and prominent complement to that Technology Policy, was named a research. Western Agricultural Economics As an excellent and dedicated Association Fellow for his sustained teacher, his student evaluations record of excellence in research and are above department average for teaching. each of the courses he has taught. Moschini’s recent research has He advises and mentors graduate been related to the economics students, demanding excellence, of innovations, including the which motivates students to welfare impacts of genetically pursue academic positions and modified crops, of biofuel policies, promote early career development. and of quality in food markets. In addition, he has served as an GianCarlo Moschini His contributions to the policy associate editor of the AJAE. °

Pouliot and Babcock Receive AAEA Award

ebastien Pouliot and Bruce Babcock Sreceived the Bruce Gardner Memorial Prize for Applied Policy Analysis at this year’s Agricultural & Applied Economics Association Annual meeting in San Francisco. The Bruce Gardner Memorial Prize for Applied Policy Analysis Award recognizes outstanding impact on agricultural and related policy, based on sound foundations in economic theory. The award was for work they have done on ethanol policy impacts, including a series Sebastien Pouliot Bruce Babcock of policy briefs on CARD’s web site. °

Lence, Hart Named Exemplary Mentors

ergio Lence, professor and Marlin Cole SChair of International Agricultural Economics, and Chad Hart, associate professor, have been selected as exemplary mentors for the 2015–16 academic year. They were honored by the Office of the Senior Vice President and Provost for their outstanding work in impacting their junior colleagues’ experiences at Iowa State in a recognition ceremony sponsored by Provost Wickert and Associate Provost Bratsch-Prince on May 4 in the Cardinal Room at the Sergio Lence Chad Hart Memorial Union. °

ISU Department of Economics Update | 5 Research ISU Economist Working to Better Assess the Costs of Climate Change Story, Angie Hunt, ISU News Service; photo, Deborah Gruca

he cost of a five-degree studies. In an article published in increase in the Earth’s the journal Science, Rudik and a overall temperature team of researchers outlined the Twould be significantly different need to better understand the link for a developing country between economics and climate. near the equator compared “Climate change impacts to a developed country in the everything and linking it all Northern Hemisphere. But for together is very difficult,” Rudik either country, that cost is highly said. “Because there are a lot of uncertain and that’s a problem, uncertainties, we don’t have a said Ivan Rudik, an Iowa State great way of knowing what the University economist. economic costs of two to three “We don’t have a strong grasp degrees of warming will be. We’re on the economic costs of climate making a lot of assumptions, and change,” Rudik said. “We have so I try to figure out ways to design a good idea of how climatic and policy to guard against potential Ivan Rudik physical systems will change in errors in our models of the climate- response to greenhouse gases, but economy system.” order to better design policy. “It’s we need a better understanding of In the paper, Rudik and not just the cleanup of the shore, the costs to society to inform policy his colleagues identified three but the cost to people who are no makers as to what the best policies needed areas of research: refining longer vacationing there because of are to combat the problem.” the social cost of carbon, an the spill and are missing out on the estimate often used in developing experience. There’s also the impact climate policies; determining on the local community because The dilemma is determining the consequences of particular people may have been afraid to go policies; and understanding the to the Gulf because of the oil spill. who should bear the burden economic impacts and policy Without some market value it’s choices in developing countries. hard to determine how big these for mitigation efforts, The challenge for economists is costs are,” Rudik said. valuing things that have no real while guaranteeing that market. Rudik said it’s fairly easy Who pays to fix the problem? to determine agricultural impact Most economists agree that a climate policy does not limit damages because there are market carbon tax is the most effective prices for crops and land, but it’s way to reduce emissions and economic productivity of harder to value something like address climate change. Rudik pristine shorelines. said it’s simple — if you make developing countries. Rudik used the example of something more expensive, people increased conflict due to warmer will use less of it. Not only will temperatures. If there are more consumers respond by using Rudik is using climate and conflicts, what is the cost? And less electricity or driving more economic models to better capture how does that affect the economy? fuel-efficient cars, but firms will the uncertainty of damages Rudik said estimating some kinds move to create cleaner products. from emissions and how that of climate damages is similar to However, Rudik said strong uncertainty influences the social calculating damage estimates for political resistance to a carbon tax cost of carbon dioxide. He said disasters like the Exxon Valdez makes it an unlikely solution. a lot of the factors and estimates or Deepwater Horizon oil spills. State and federal governments used for policy making decisions Quantifying the value of peace or continued on page 22 today are based on decades-old a clean shoreline is necessary in

6 | ISU Department of Economics Update Faculty Focus: Peter Orazem

f ever there was someone born Sciences, Director of the Industrial to teach economics at Iowa Relations Program, and Co- State University, it’s University Director of the Institute of Science IProfessor Peter Orazem. It was his and Society. goal, by his own account, since the In addition to his Iowa State age of six. responsibilities, Orazem has Orazem, the second son of worked as a visiting scholar and Yugoslavian immigrant parents, consultant to the , made his initial appearance in research fellow at IZA, Bonn, Ames, Iowa in 1955. His mother, Germany, Koch Visiting Professor who earned a Master’s in math, at the University of Kansas, and taught high school. His father, First Vice President of the Midwest Peter Orazem an economics professor, was an Economics Association. He’s also agricultural economics Ph.D. found time to serve on the Ames candidate under Earl Heady, City Council for the last six years. Economics Club Speakers economics professor at Iowa State This year Orazem was and Topics for more than four decades, and instrumental in applying for and the namesake of the building gaining funding for the Economics Nora Tobin, Executive Director, where Orazem has taught and Forum Lecture Series. The series Self Help International: done research for 36 years. brought economists who are Nonprofits and Economic Orazem earned his B.A. in prominent in their fields — Heidi Development economics from the University of Shierholz, Chief Economist to Kansas, and his M.A. and Ph.D. U.S. Secretary of Labor, and Josh Sam Summers, Events Promoter, in economics from Yale. He started Lerner, Jacob H. Schiff Professor Business Owner: work at Iowa State as an economics of Investment Banking at Harvard Starting a Business assistant professor in 1982, Business School — to Iowa State eventually becoming full professor to share their expertise on pressing Roger Underwood, Cofounder, in 1995, and university professor economic issues. Exec. Advisor, Rural American Fund: in 2003. In December, Orazem was Entrepreneurship During his years at Iowa State, successful in nominating fall Orazem has been active at various semester commencement speaker Cassandra Wirth, Economist, times as Director of Graduate and alumna Dame DeAnne Julius, Bureau of Labor Statistics and Studies, Interim Associate Dean former intelligence analyst for MaryKatherine Koithan, of the College of Liberal Art and continued on page 23 Global Ops, Principal Financial Grp: Getting Ready for the Career Fair

Shane Bellefy, Vice Pres., United Bankers’ Bank: Banks and Banking

Nancy Brannaman, MS Ag Econ/Finance: An Economist & the Foreign Service

Calli Sanders, Sr. Associate Director of Athletics at ISU and Rick Sanders, Past Commissioner, Maria (Jimena) González Ramírez, Anthony Sax, Jack Fischer, Dawson Midwest Collegiate Conference: Barriuso, TJ Rakitan, and Peter Orazem (l to r) attended the Midwest Econ. The Business of the NCAA Assoc. meeting in Evanston, Illinois. Sax and Fischer presented their papers.

ISU Department of Economics Update | 7 Graduate Student Research Prescott Scholarship Winners

eri Prescott, wife of former faculty member JJames Prescott, presented the James R. Prescott Scholarship in Economics to Zhixia Ma and Kevin Jeri Prescott with Meyer at a reception in their honor on January 12. awardees Zhixia The scholarship was established to recognize graduate (Summer) Ma students who demonstrate creativity in their research. and Kevin Meyer.

After receiving her bachelors when you are going to be here for of engineering from Tsinghua five years.” University, she traveled to the After her expected graduation U.S. for her graduate work. in May, Ma will begin a new She earned a masters of art in position as a research economist economics from Duke University with a commercial bank in Beijing. in 2011 and applied to several She looks forward to living at graduate schools in the U.S. She home again with her husband, was impressed by Iowa State her family, and friends after being when she visited a chemistry grad away for seven years. Ma and student friend in Ames. her husband, a college classmate, “It’s a nice town, and you have married in 2012. He has a Ph.D. Zhixia (Summer) Ma everything around campus very and is doing his post-doc in near, very close. It’s good to study mechanical engineering in Beijing. hixia Ma has always been for a Ph.D. in this place, it’s very Ma said, “I’m excited about Zgood with numbers. As early quiet, and you can focus on your winning the scholarship because as grade school in her hometown research rather than just having a it’s a reward for your work. In of Beijing, she knew she wanted job. The economics department undergraduate study, when you to pursue a career that involved and building are so big, with big have a scholarship, it’s not only math or physical sciences. offices and desks, which is good continued on page 21

“Alaska’s economy is highly resource economics. He chose dependent on its natural Iowa State to do his Ph.D. study resources, specifically oil, so there because of its impressive reputation was always a lot of questions in agricultural, environmental, and in the news on the best way resource economics. to manage those resources. I Meyer conducts his study, later found out that economics which focuses on identifying the provides the tools to answer those effect of changes in land use on types of questions,” said Meyer. lake water quality in Iowa, with A couple of engaging under- help from Co-major Professors graduate courses at the University David Keiser and Catherine Kling. Kevin Meyer of Alaska spurred his interest in His work has earned him the field of economics, setting the the 2015 James R. Prescott evin Meyer grew up course for his future studies. Scholarship in Economics, Kin Anchorage, Alaska, In 2010 Meyer earned his which was established to surrounded by mountains, oceans, master’s in economics from Central recognize graduate students who forests, and all the wildlife that Michigan University. Because of demonstrate creativity in their depends on these natural resources. his experience living in Alaska, research. The scholarship is funded Early on, he appreciated and he was drawn to the specific field by a gift to the ISU Foundation valued the environment. of environmental and natural continued on page 23

8 | ISU Department of Economics Update CARD Announces Two Winners of PhD Dissertation Award

atherine Kling, director of CCARD, presented Matthew Clancy and Younjun Kim the third annual CARD Award for Best Matthew Clancy Younjun Kim Ph.D. Dissertation in Agricultural, Environmental, and Energy and test several predictions of second focuses on the existence Economics Policy. the model. Specifically, Clancy of agglomeration economies in To be considered for the award examines how new useful rural areas. graduate students had to submit combinations of technology affect Kim’s third and fourth essays a copy of their dissertation and a the number of patents filed in that focus on choices under risk. One brief summary of how the topic of particular technology class and essay examines risk elicitation research related to one of CARD’s how time affects the probability of methods with a multiple price list research areas. Graduate students using a particular combination of format, and the second studies were required to have completed technologies. pre-play learning and inconsistent their final oral examination in 2015 Kim’s dissertation is a collection preference ranking between choice to be considered. of four papers, the first two papers and pricing for lotteries. Clancy’s dissertation uses 8.3 focus on regional economic Both students were awarded million U.S. patents to create a development, particularly, the first a $500 prize, and will have their novel dataset to present an original focuses on whether broadband names added to the Dissertation model of knowledge production improves rural economies, and the Award winners plaque at CARD. °

Lyons Awarded Thomas Lyon Scholarship for the Savanna in class and worked with Scholarship for Study of Agricultural Cooperatives. her on the cooperatives aspects of Coop Research The focus of the Lyon her thesis project. Scholarship, set up in 2012 by Graduate adviser Georgeanne Barbara and Thomas Lyon, is Artz added, “Savanna secured a to recognize a graduate student grant to do this work (unusual who demonstrates an interest in for our master’s students). She the study of cooperative business is an exceptional student. She is enterprises, and agricultural creative, insightful and incredibly cooperatives in particular. Savanna, self-motivated, and has been a real who graduated spring semester, pleasure to work with.” received the $4,000 scholarship Savanna has worked closely retroactive to the 2015–2016 with the National Good Food academic year. Network (NGFN) affiliated with “Savanna’s research and thesis the Wallace Center at Winrock are anchored in food hubs and International, which is a national Savanna Lyons cooperatives, and she is authoring leader in food hub research and an impressive manager’s guide for education. She has presented three master’s degree student in food hubs as a result of her work webinars on food hubs for NGFN Aeconomics and sustainable with the Leopold Center,” said and was also invited to deliver two agriculture, Savanna Lyons is Keri Jacobs, who is on Savanna’s presentations at NGFN’s national the recipient of the Barbara and graduate committee. Jacobs had conference later this year. °

ISU Department of Economics Update | 9 Graduate Studies Soares Cardoso Awarded Brown Fellowship strategically advance ISU research in the areas of study, which include science, agriculture, and space science. For graduate students to be eligible they must have GPA of 3.5 or above, a total GRE score for verbal plus quantitative of 320 or above, Fangge Liu a GRE analytical writing score of 4.0 and show a high level of Liu Earns Scholarship excellence in both their studies Diego Soares Cardoso and research. Fangge Liu is this year’s recipient Peter Orazem, Diego’s of the Cathryn Jacobson Second year graduate student advisor said, “In every one of Ahrenholz Scholarship. This Diego Soares Cardoso has our meetings from our very first, award recognizes a graduate been awarded the 2016 Brown Diego has come in with his plans student in the department of Graduate Fellowship. for the semester. Then he goes economics who has a strong He received $10,000 on his out and does it. He is driven to record of academic achievement, U-bill, $5000 in August and combine his interests in computer shows exceptional promise, and $5000 in January, should he science and economics and he has a dissertation interest in remain a full-time student in good consistently demonstrates that agriculture. The amount of the standing at Iowa State. he will be very good at it. As an scholarship is $3,000. This is the The focus of the Brown adviser, my job has been to make second year that this scholarship Graduate Fellowship is to sure I do not get in his way.” ° has been awarded. °

EGSA Officers Elected Teaching Excellence Awardees

New officers of the Economics Graduate Student Assoc. were elected for the 2016–2017 academic year: Yun Chang, Graduate students Qianrong Wu, Jinjing Luo, (front row, l vice president; Diego Soares Cardoso, president; and to r) Wendiam Sawadgo and Jiaoting Shi (back row) Kevin Duncan, treasurer (l to r). Four economics graduate students received the Robert Duncan initiated the Graduate Student Seminar Thomas Teaching Excellence Award for their skill Series this year for grad students and post docs to in working with undergraduate students during the meet each week to present papers. ° 2015–2016 academic year. °

10 | ISU Department of Economics Update Undergraduate Students Students Inducted into Cardinal Key Honor Society

On Sunday, April 10, three ag business students, Celina Young, Trey Forsyth, and Joni Erwin, were inducted into Cardinal Key. Cardinal Key was founded in 1926 to recognize outstanding leaders at Iowa State University. The structure and philosophy of Cardinal Key were modeled after a similar honorary known as Blue Key at Yale University. At the time, Cardinal Key was exclusively a men’s honorary Ebby Luvaga (left) honorary adviser, stands with Cardinal Key inductees organization up until 1975. It Celina Young, Trey Forsyth, and Joni Erwin. was then that it became required that all chapters be open to exclusive, being limited to no more finest leaders in the Iowa State students of both genders. than one-half of one percent of the University community. Due to Cardinal Key was founded senior class, and one-third of one the rigorous standards leading to upon the cardinal virtues of percent of the junior class. their selection and high quality of leadership, service, scholarship, This year, only 73 student student, faculty, staff and alumni and character. These four ideals members from Iowa State members, Cardinal Key has been continue to guide the organization. University were inducted; all revered as Iowa State’s preeminent Cardinal Key membership is very of whom represent some of the honor society. °

NAMA Student Chapter Brings Home Awards

The Iowa State student chapter of the National Agri-Marketing Association was awarded the following at the 2016 National Agri-Marketing conference in Kansas City:

• 1st Place Outstanding Student Chapter • 2nd Place John Deere Signature Award ($2,000) • Chapter Communications Award • Student Marketing Competition Semi-Finalist Award

In addition, Joni Erwin and Iowa State chapter of the National Agri-Marketing Association won several Rebekah Sletten, received $1,000 awards from the 2016 national conference. ABEF scholarships. °

ISU Department of Economics Update | 11 Undergraduate Students Seniors Participate in Poster Session

Honors students Sydney Elson and Kathlina Roat presented their posters at the University Honors poster session on Wednesday, April 27, at the Memorial Union. Honors students must maintain a cumulative GPA of Sydney Elson, senior, ag bus, has Kathlina Roat, senior, economics, at least 3.5, enroll in at least one been in the Honors program for four presented her poster “Loneliness in Honors seminar for each year of years. Her poster and paper are College Students.” Roat has been an participation in the program, and titled “Changes in Local Recreation Honors student since transferring complete an Honors project with a Patronage in Iowa Small Towns from Auburn in her junior year. Dr. poster presentation and paper. ° 1994–2014.” Elizabeth Hoffman is her adviser.

2016 Economics Phi Beta Kappa Heimann wins award Awardees Initiated

Blake Heimann

Senior Blake Heimann received the 2016 Barbara Mack Scholar Award in the Humanities or Social Sciences at the Phi Beta Kappa initiation this spring. He has been serving as an analyst intern at Situs Real Estate Research Corp. while pursuing his degrees in economics and Mengyu Wang, aerospace engineering, economics; Blake C. Heimann, mathematics at Iowa State. Active economics, math; Dr. Peter Orazem; Taylor E. Finn, economics, world languages in the ISU investment and weight- and cultures; Kathlina Brodehl Roat, economics, math (l to r). (Not shown: lifting clubs, he will start taking Mackenzie Jo Jahn, economics, marketing.) graduate classes in economics during his senior year, but is also In April, five economics students were inducted into Phi Beta Kappa, taking coursework necessary to the oldest nationwide liberal arts and sciences honor society. The qualify for medical school, allowing organization honors high-achieving students from 286 top schools him to choose between medical across the country for the excellence and breadth of their undergraduate school, graduate school, or a career scholarly accomplishments. ° in finance when he leaves ISU.°

12 | ISU Department of Economics Update Ag Bus Club Receives Endowment

Farm Credit Services of America (FCS of A), a national ag lending institution, presented a check for $100,000 to the Ag Business Club at their December meeting. The funds are to be used to provide general support for club members and club involvement activities by club advisers. Later, in January, AgriBank Allison Bastian, Lauren Sendelbach, Catherine Hayes, Miriam Rinehart (FCS of presented a check for $50,000 to A), Ron Deiter, Joni Erwin, Alan Erickson (FCS of A), Hanna Mendenhall (front Sara Roelfs of the ISU Foundation row, l to r); Trey Forsyth, Brandon Klaes, Nathan Hrubes, Izak Christensen, to support the Ag Bus Club Craig Welter, Marc Throndson (back row, l to r). endowment started by FCS of A. ° Ron Deiter, Amy Brandau and Georgeanne Artz serve as co-advisers of the club.

Econ Club Members Meet with Buffett

In October Brent Moore traveled with the Economics Club members to the offices of Berkshire Hathaway in Omaha to meet with business magnate and CEO Warren Buffett. Their two-hour Q&A session

was followed by lunch with him at

Piccolos, a favorite restaurant. Hieu Nguyen, club president, and Lauren Sendelbach, vice- president, were involved in On Friday, Oct. 16, twenty economics students and staff member Brent organizing the trip. ° Moore traveled to the offices of Berkshire Hathaway in Omaha, Nebraska.

Ag Bus Student Attends Forum

Trey Forsyth, a junior in agricultural business, was one of six students from across the United States invited to attend the 2016 Farm Foundation Cultivator forum in Tucson, Arizona in January. The annual winter roundtable meeting is an invitational discussion forum comprised of leaders from North America. Forsyth presented a poster about the essential role cooperatives play in international trade and agriculture. He did research on coops in sub- Saharan Africa through his internship with the Land O’Lakes Global Trey Forsyth Food Challenge last summer. °

ISU Department of Economics Update | 13 Undergraduate Student Research Student Research Presented at Annual Meeting Anthony Sax and Jack Fischer, two Iowa State undergrads, had papers accepted for the 2015 Midwest Economics Association meeting, held April 1–3 in Evanston, Illinois.

club adviser Professor Peter Orazem. In 2015, he began working with Orazem and MaryKatherine Koithan, a 2015 economics graduate, on his paper “Do Differences in Marginal Tax Rates at State Borders Affect Residential and Job Location?” With Orazem’s encouragement, Anthony Sax, senior, major: supply he submitted the paper and was Jack Fischer, senior, major: physics, chain management notified in January of the paper’s minors: Russian, economics acceptance for presentation at the nthony Sax is a senior majoring Midwest Economics Association ack Fischer, from Cedar Rapids, Ain supply chain management. meeting in April. JIowa, has several diverse The native of Woodbury, The data analyzed for the paper interests. After an earlier change of Minnesota, has been active in the includes the effects of seven taxes major, he has enough credits to be ISU Economics Club for four years, (income tax, sales tax, capital listed as a senior at Iowa State, but attending the monthly meetings gains tax, corporate tax, property he’s currently a sophomore with and the club’s annual spring trips tax, workers’ compensation, and a major in physics, and minors in to the Berkshire Hathaway annual unemployment insurance tax) Russian and economics. meetings in Omaha. on resident and employment Fischer submitted his paper, “Bank In October, 2015, he was part location. The results show Stress Testing,” to the MEA last year of a group of 20 ISU students who persistent and economically and was notified of its acceptance participated in a special question- important differences, including in the fall. With Peter Orazem, fellow and-answer session with business lower employment growth, in presenter Anthony Sax, and three magnate and Berkshire Hathaway counties with higher marginal tax others, he travelled to Evanston CEO Warren Buffett. rates relative to their neighbors to present it at the association In addition to the Economics across state borders. meeting. Club, Sax is involved in the Sax had a positive experience in “I began researching the topic Supply Chain Management Evanston. “The meeting was very during the spring of 2015 as part Club (a resource management good and interesting. I learned of the honors first year mentor organization) and the Game quite a bit and got to watch some program and it turned into a Development Club, where very interesting presentations.” whole paper from there. I ended members learn about the tools, After graduation this spring, Sax up submitting it because Dr. Peter techniques, and processes used probably won’t have much time to Orazem thought that it stood a in contemporary video game reminisce about his time at Iowa good chance of being accepted,” development. Through his State. He’ll be working in Logistics said Fischer. involvement with the Economics Management for General Mills in His research looks at how smaller Club, Sax asked to work on an Buffalo, New York. ° continued on page 21 economics research project with

14 | ISU Department of Economics Update Student Papers Presented at Undergrad Research Conference Benjamin Meier and Urja Shah traveled to Dallas to present their papers at the 10th Annual Undergraduate Research Conference, which endeavors to foster the involvement of undergraduate economics students in all facets of research.

to do research with Dr. Peter Orazem, who became his favorite instructor. Peter “works hard every minute of the day to encourage learning, research, and student success.” It was Orazem who encouraged Meier to submit his draft to the undergrad research conference, where it was accepted. He finished his paper “Minimum wages and Urja Shah, senior, major: economics youth job training: implications for earnings and career skills as rja Shah started Iowa State an adult” and presented it at the Uas an industrial engineering Ben Meier, senior, majors: industrial conference. The paper investigates major because she liked the engineering, applied math in how differences in minimum wages combination of engineering economics across states during the high and business. After taking some school years affect skill acquisition economics courses, however, she hen he first came to Iowa on the job. Meier learned a great was impressed with the faculty WState, Benjamin Meier says deal about creating a presentation and realized she found the subject he “spent a significant amount of when he attended the Midwest much more interesting than time bouncing around between Economics Association meeting in engineering, and so changed her engineering, economics, math, Minneapolis last spring to present major to economics at the start of and Spanish, changing my major a paper by Zachary Deitrich, who her junior year. four times before the end of my was unable to attend. When asked about her favorite sophomore year.” During his time at ISU, Meier has classes, she exclaimed, “Econ 431 He wanted a degree that been busy. He belongs to three with Terry Alexander! I just love incorporated economics, honor societies: Phi Beta Kappa the way he teaches, it’s applicable operations, and systems (LAS), Tau Beta Pi (Engineering), and and approachable and he makes engineering with a heavy emphasis Omicron Delta Epsilon (Economics). attending classes fun! I’ve had three in mathematics. Then he spoke He was awarded highest two classes with him from 102 to 302 to with Professor Terry Alexander, percent in engineering and LAS 431, and his teaching expands more who helped him finally settle on in Spring 2013, all while working than econ theories.” the perfect combination of these as a community adviser for two She added, “Also, Econ 301, not majors: industrial engineering and years in Friley and Legacy and only because it is one of the most applied math in economics. being involved in Inter-Residence important econ classes, but also One of Meier‘s favorite courses Hall Association for Friley Hall, because that’s when I first found was Econ 344. “It’s a public policy Institute for Industrial Engineers, out through Dr. Orazem that there’s course taught by Dr. Elizabeth and Economics Club. Meier has a humor in economics. He’s not Hoffman. It includes in-depth clear goal for his future career: He only a great teacher but also is an analysis of current public policy wants to work in an organization inspiration himself. I have come to issues in the U.S. with a touch of which evaluates and contributes to think of him as my mentor.” debate and game theory.” the improvement of public policy continued on page 21 Meier also had the opportunity through quantitative analysis. °

ISU Department of Economics Update | 15 Alumni News Dame DeAnne Julius Honored at Department Reception

ame DeAnne Julius was honored at an economics department reception in December for her distinguished service to Dthe economics profession. Julius, who received her B.S. in economics from Iowa State University in 1970 and her M.A. and Ph.D. from the University of California, Davis, gave the address at Iowa State’s fall commencement at Hilton Coliseum. She also received an honorary doctor of humane letters from Iowa State for “distinguished service in economics, business, international relations, government, policy making and academia” in her work in key positions with the U.S. Central Professor Peter Orazem presents Dame DeAnne Julius a Intelligence Agency, the World Bank, the Royal distinguished service plaque at a reception held in her Institute of International Affairs, , British honor at Heady Hall. Airways, the , and the think tank (also known as the Royal Institute of International Affairs), where she currently serves as senior adviser to the board. In the , Julius’ home for the past 30 years, she was appointed by Queen Elizabeth II to Commander of the Most Excellent Order of the British Empire for services in Monetary Policy in 2001, and in 2013 to Dame Commander in the Most Distinguished Order of Saint Michael and Saint George. Only 845 people can serve in this capacity throughout the U.K. Julius attended the reception with her husband, Ian Harvey, her parents, Maxine and Emeritus Professor Marvin Julius, her brother, Kent Julius (an ISU economics alumus), and her nephew, Dame DeAnne Julius speaks with a group of economics Niklaus (ISU economics Ph.D. student). ° graduate students at a reception at Heady Hall.

Ian Harvey, University Professor Harvey Bronwyn Frame speaks with Julius’ parents, Maxine and Emeritus Professor Lapan and Department Chair Joshua Niklaus Julius, Iowa State Marvin Julius visit with Professor and Director Rosenbloom visit at the department event. economics Ph.D. student. of Graduate Education John Schroeter.

16 | ISU Department of Economics Update Roger Underwood - BS (1980)

oger Underwood, entre- Iowa State, and many other preneur and co-founder of organizations. He is an active crop-technology company founding limited partner in The RBecker Underwood Inc., graduated Rural American Fund and serves from Iowa State with a bachelor’s as a board member at Kent Corp., in agricultural business in 1980. Albaugh Chemical, Lacrosse Seed, Underwood, who is known and Mississippi River Distilling. for his business acumen and Underwood was named Order entrepreneurship, founded of the Knoll Outstanding Young Becker Underwood in 1982 Alumnus, received the College with high school classmate Jeff of Agriculture and Life Sciences Becker. Together they developed Floyd Andre Award and the Iowa a specialty colorant to mix with State Cardinal and Gold Award. Roundup herbicide. Becker He is a member of the Iowa Underwood diversified into State Foundation Board of a global company producing Governors and chaired Campaign Roger Underwood specialty seed colorants and Iowa State, the university’s $867 coatings and biological crop million fundraising campaign. He Hertz Lecture on Emerging Issues protection products. The company and his wife Connie provided a in Agriculture, which was created grew to $265 million in sales by $1.5 million cash gift to establish in memory of the founders of 2013 and was sold to BASF. the entrepreneurship program in Hertz Farm Management to Underwood is involved the College of Agriculture and inspire generations of industry in many agricultural and Life Sciences. leaders, research scientists, and philanthropic pursuits in support Underwood was recently a young professionals to reach their of Boy Scouts, TKE fraternity, speaker for the Carl and Marjory full potential. °

Alice Wisner - BS (1983) economics in December of 1985. In 2000 I returned to the I then went to work with the Legislative Fiscal Bureau, and staffed Department of Agriculture, Trade the Economic Development and and Consumer Protection in the Ways and Means committees. midst of the farm crisis and helped During that time I became aware of to coordinate their programs of the Crime Data Coordinator position crisis hotline, farm advocates, and open with the West Des Moines mediation. Police Department. I started there in In 1987 I moved back to Iowa May of 2001 and helped to establish and joined the Legislative Fiscal the crime analysis program there. Alice Wisner Bureau, a nonpartisan support I left the WDM PD in September agency for the Iowa General of 2014 and am back with the fter graduating from ISU Assembly. Until 1993 I staffed the Legislative Fiscal Bureau (now the in 1983 with a degree in Education, Agriculture and Natural Fiscal Division in the Legislative agricultural business, I Resources, and Human Services Services Agency), and staff the movedA to Madison Wisconsin appropriations subcommittees. Justice appropriations subcommittee and worked for the commodities In 1993 I became a stay at home and deal with issues relating to brokerage Stotler and Company. mom, but also did consulting with corrections, the Department I started at the University of various campaigns at the local, city, of Public Safety, the Iowa Law Wisconsin in the fall of 1984 and state, and federal levels and filed Enforcement Academy, Homeland received my master’s in agricultural their finance campaign reports. Security Department, and others. °

ISU Department of Economics Update | 17 Alumni News

Nancy B. Brannaman - MS (1985)

ancy B. Brannaman Organizations (EUR-IO/EX). (B.S. Ag Business/Farm Following that assignment, Operation, M.S. Ag Brannaman worked in Global NEconomics/Finance, ISU) is an Financial Management Systems accomplished business manager as a project manager for a new and mentor who has worked planning and budgeting system in nine countries and Iowa in for the State Department. In financial management, human addition, Brannaman worked as resources, logistics, contracting, a Financial Management Officer marketing, financial analysis, and in the International Cooperative general management. Brannaman Administrative Support Service recently completed a successful (ICASS) center in Washington, career with the U.S. Department DC. ICASS distributes costs to all of State as a Foreign Service Officer federal agencies for management specializing in management. services provided in embassies by With an unconventional the State Department. The ICASS Nancy B. Brannaman background for the Foreign Service, Service Center manages the $2.5 Brannaman didn’t set her sights on billion working capital fund, their foreign service careers. becoming a Foreign Service Officer establishes management policies, Brannaman learned Russian in until later in her career. develops budgeting software, and Ukraine and Russia and studied After working with her provides training to finance staff Russian seven months in intensive husband, John (B.S. and M.S. around the world. language training at the Foreign in Animal Science, ISU), on Brannaman finished her career Service Institute in Arlington, agricultural development projects as the first State Department Virginia. She studied Albanian for the State of Iowa and Land Management Officer in the U.S. intensively in Albania for eight ‘O Lakes in rural Ukraine and Embassy in Juba, South Sudan. months. Brannaman and John are Russia for three years following She established the management continuing to work on a part time the breakup of the Soviet Union, section and set up management basis for the State Department they decided they liked working systems to provide accounting, and USAID, respectively. overseas. Brannaman credits home vouchering, budgeting, personnel A third generation Iowa schooling their daughter while management, contracting, Stater, Brannaman follows her living overseas with helping her cashiering, travel, and inventory grandfather, a 1921 graduate in to pass the Foreign Service Exam. control services for the State farm management, and her father, That refresher in U.S. history and Department and other agencies a 1951 graduate in agricultural the constitution paid off. in the embassy. Embassy Juba is engineering. After graduation Brannaman joined the the second newest embassy in from Iowa State, Brannaman Foreign Service in 2000 and the world (Embassy Havana is worked for Iowa State University has served as a Consular Officer the newest), in one of the least Extension Service as an Area in Kyiv, Ukraine; Supervisory developed countries in the world. Management Specialist in east General Services Officer in Baku, Brannaman’s husband, Central Iowa. Azerbaijan; HR and Financial John, is a retired Foreign Service A member of Cardinal Key, Management Officer in Tashkent, Officer with the U.S. Agency she is a recipient of Iowa State Uzbekistan; and Management, for International Development. University’s Outstanding Young HR and Financial Management John worked in agricultural Alumna Award, Outstanding Officer in Tirana, Albania. She has and economic development Agribusiness Alumna Award, and worked in post management and and food aid during his foreign Iowa State University Extension as Deputy Budget Officer in the service career. The Brannamans Service New Professional Award. Executive Office for the Bureaus of successfully managed tandem The Brannamans have recently European Affairs and International assignments together during returned to Ames, Iowa. °

18 | ISU Department of Economics Update Sam Summers - BS (2006)

am Summers started his first And I use both of those every music promotion company, day. I took a lot of stat classes and First Fleet Concerts, while mathematics, and I use a lot of Sstill a student at ISU. Among that in my work too. But I don’t other venues, he promoted several think that your career has to be music shows at the Vaudeville defined by what you studied in Mews in Des Moines, later college. So many people aren’t partnering with owner Amedeo doing exactly what they went to Rossi to produce the Nitefall school for. College is sort of there on the River concert series. The to help you realize what you want inaugural Hinterland Music to do after college.” Festival, in 2015, is his latest “When I was young, I liked musical brainchild. making money; I looked for golf In 2012, he opened the balls and sold them to golfers Des Moines bar, Wooly’s, with Sam Summers on the tees, or I’d collect hedge partners Josh Ivey, and Rafe balls from their trees and go sell Mateer. The following year maybe I could do this. I went to them in the neighborhood — the trio opened the Up-Down high school in Johnston, Iowa, so when you’re young you can sell arcade bar in Des Moines, with I was close to Ames, and a couple anything. And I was just always a second location in Kansas City of my friends were coming to scheming to sell anything — car in 2015. In 2014 Summers and ISU. So when I started at Iowa washes, snow shoveling. My mom several partners also ventured into State I signed up for electrical reminds me that when I was another avenue of the restaurant engineering, but it ended up young, instead of charging by the business, with the Powered by being a lot more science and driveway, I’d charge by the size of Fries food truck. whatnot than I really wanted, so I the drift. I mowed ten lawns when Summers agreed to be a guest switched to undecided.” I was 12 to 14 years old.” speaker at a recent meeting of the “Later, I liked business and “Later on, when I had a job Economics Club at Iowa State. I liked economics and I just at a grocery store, I’d observe my “When I was in high school, chose the one that didn’t require boss checking the numbers and I used to buy broken electronics, business law — I saw how thick how sales were doing. I was always fix them, and sell them. I took that book was! I ended up doing very interested in the numbers, a class at DMACC and thought a second major in marketing. continued on page 23

Angela Veldhuizen - BS (2005)

ngela Veldhuizen, C.F.P., J.D., financial planning positions at AM.B.T. has joined the wealth Deloitte and SilverOak Wealth management team of Accredited Management LLC. Investors Inc. in Minneapolis, MN. She completed a B.S. Veldhuizen has extensive in economics and a B.S. in experience advising clients agricultural business from on many aspects of tax Iowa State, a M.B.T. from the planning, timing of income, University of Minnesota, Carlson Social Security, identity theft School of Management and a J.D. and savings plans. Prior to from William Mitchell College Angela Veldhuizen joining Accredited Investors of Law. She currently resides in Inc., Veldhuizen held tax and Minneapolis, Minnesota. °

ISU Department of Economics Update | 19 Alumni News

Alicia Rosburg - PhD (2012)

licia Rosburg, who received economics, human resources, and her Ph.D. from ISU in econometrics. 2012, started a four-year Throughout her studies, termA as a member of the Leopold Rosburg also discovered that she Center for Sustainable Agriculture had a knack for teaching because Advisory Board. it gave her a chance to connect Rosburg, assistant professor with people outside of research. of economics, University of She saw several undergraduate Northern Iowa, says that she is students who were scared of or honored to represent UNI on intimidated by economics. She the Advisory Board and “hopes liked to help make the discipline to contribute to a group whose enjoyable for them by connecting passion for sustainability efforts it to everyday things. Alicia Rosburg will create collective efforts that After graduating, she accepted exceed individual contributions.” the position at UNI and has been with a passion for wildlife. They She earned a B.A. in teaching there since. had a “mini-menagerie...that economics from the University of Rosburg’s appointment to included domesticated deer, geese, Northern Iowa, and later, a Ph.D. the board is in line with her chickens, ducks, pheasants, ferrets, in economics from Iowa State background, along with her sheep, and raccoon.” University, with an emphasis in education. She grew up on She spent summers working the fields of environmental and an acreage near Boone, Iowa, on her grandfather’s farm walking resource economics, agricultural where her father instilled her beans and loading hogs to sell. °

Onalie Kavindi De Silva Ariyabandhu - BS (2014)

from Iowa State, she returned to profits/outcomes, it involves the her native country to serve as a coordination and cooperation of social change entrepreneur for the multi-disciplinary stakeholders to United Nations Population Fund. work towards achieving positive Today, she is a visiting trainer social change. Most importantly and lecturer on life skills education it constantly reminds us how who has become a thought leader opportunity costs, labor force on the issues of health, education, discriminations, and externalities gender equity, and religious could make significant differences tolerance and has inspired young in the socioeconomic development Onalie Ariyabandhu girls throughout Sri Lanka. process in a nation. Although A past president of ISU’s I didn’t come across economic Sri Lankan survivor of the International Student Council, definitions and lengthy equations 2004 Christmas tsunami, Ariyabandhu was named the at work, we do work around many the tapestry of Onalie university’s outstanding student concepts that economics classes at Ariyabandhu’A s academic and leader of the year in 2014. Iowa State taught me a few years professional career has been woven When asked how working in back. This is when the value of with the threads of compassion and the development world is different understanding the concepts instead resilience. After graduating with from a job in the corporate of memorizing them for exams degrees in economics, international world she says, “It requires one came in handy for me! Iowa State studies, and environmental studies to think beyond maximizing will always be my second home.” °

20 | ISU Department of Economics Update Faculty & Staff Updates

Faculty and Staff Changes

John Miranowski retired as professor in 2016. Stacy Noe He first came to resigned from Iowa State in 1975, David Hennessy her position and left in 1984 for and Hongli of program other positions. He Feng Hennessy coordinator in returned to Iowa resigned from the Agricultural State in 1995 until present, including a their positions of professor and Entrepreneurship Initiative in 2015. stint as department chair until 2000. adjunct associate professor, Amanda Blair respectively, in joined the staff as Joe Lally resigned 2015. the new program from his position coordinator in of program the Agricultural coordinator in Entrepreneurship 2015. Initiative in 2015.

Fischer Ma Research awards continued from page 14 continued from page 8 Lee Schulz was awarded banks, on which public data is based on your academic work, a $650,269 University of available, respond to the types of but also your social work. If you Vermont research grant to aggregate economic shocks used in volunteer and do other stuff, they study A Human Behavioral the stress tests currently applied to consider whether to give you the Approach to Reducing the the largest 150 banks in the U.S. scholarship or not. But this is only Impact of Livestock Pest or Despite a fear of public speaking, about the research and nothing else. Disease Incursions of Socio- he was pleased with his presentation I think that means I’m really good Economic Importance. 5-year during the undergraduate session. at this particular area of research.” Subcontract. “I’d highly recommend the meeting Ma’s research dissertation is to other students in the economics titled, “Business Cycles with Asset Alejandro Plastina was department.” ° Fire Sales.” Co-major Professors awarded a 2-year, $183,969 Harvey Lapan and Rajesh Singh grant from the University have offered Ma valuable direction of Minnesota, Twin Cities Shah and support in her work. She’s for sustainable agriculture continued from page 15 amazed how, in a minute, they are research and education. “His down-to-earth attitude and able to summarize her model that determination to work hard has she needs 20 minutes to present. GianCarlo Moschini was been the best example to idolize as I But she appreciates that in awarded a $159,000 grant soon begin my own career.” addition to physical science skills, from USDA-National Institute It was through working on a the economics profession requires of Food & Agriculture (NIFA) research project with Peter Orazem, the ability to express yourself, to for Scholarships & Fellowships and his encouragement, that she explain complicated concepts. to Train doctoral students submitted her paper, “Explaining “That’s why I think it’s very in the economics and the Urban-Rural Wage Gaps challenging — that’s why I management of agricultural in Developed and Developing chose this.” ° innovations: Biotechnology Countries,” which explains the wage and Information Technology. differences between urban and rural areas in 104 countries. °

ISU Department of Economics Update | 21 Artz continued from page 4 third area of my scholar’s effort they do not correctly incentivize to award-winning submissions. is in the area of education and people. If the goal is to reduce Artz is also the coach for the Quiz human capital, which plays into emissions, it’s most efficient Bowl Team. issues of both the above areas. This to simply make carbon more Quiz Bowl is a Jeopardy-like work draws on human capital expensive and let people decide game, with a category board theory and sorting models to better how to respond to the tax, instead consisting of multiple economics understand the impact of college of using a policy to push them categories. Artz recruits students for curriculum choices on future toward particular technologies. the team, selects students to travel earnings of alumni and is geared These other policies are far to competitions, helps organize to generating practical knowledge more widely used than carbon travel, and travels with the team. that can directly inform curriculum taxes. Even though economists “I organize the practices, which decisions in our department and like carbon taxes, they need to involves writing questions for in similar departments at our peer be realistic and start evaluating the rounds. There is an element institutions.” ° policies that are actually being of teaching involved in terms of implemented in the real world, helping students understand how Schulz Rudik said. Economists need to to answers the questions.” continued from page 4 gain a deeper understanding of “We currently participate in the a propane gas delivery business. how effective they are and their Southern Ag Econ Meetings and The more I learned and became impacts on the world, he added. the AAEA summer meetings. We involved, the more agricultural Equity is another factor have also started sending students business (economics) became to consider — how much to the NACTA agribusiness a passion, especially livestock does climate change or policy management competition.” marketing.” harm one group and benefit “The bulk of my scholarly When asked about his another? Developed countries efforts focus on investigating issues feelings about winning the are largely responsible for the relevant to business and economic Early Achievement Extension buildup of greenhouse gases in development in rural America. and Outreach Award, Schulz the atmosphere, Rudik said. This work falls into two broad answered, “I am truly honored. The dilemma is determining categories. One set of projects The livestock economics who should bear the burden is focused on understanding extension program at ISU has for mitigation efforts, while firm- and farm-level decisions. a long, storied history that I’m guaranteeing that climate This research utilizes economic so fortunate to be able to build policy does not limit economic choice models to frame and upon. The award speaks to the productivity of developing analyze business owners’ decisions, opportunity I have to work with countries. The same must be and the salient factors affecting the impressive livestock producers applied to the burden for low- those decisions. It incorporates and high quality industry income households. Rudik said new institutional economic organizations here in Iowa and the these challenges and questions theories, including the role of great collaborations I’ve had with underscore the need for better transaction costs, and theories of colleagues.” economic analysis. collective action where relevant, And the most enjoyable “There’s a lot more work to do. It’s for example, in my work on the part of his job? “Interacting only recently that we’ve developed formation, benefits and challenges with producers and industry the tools for assessing economic and of machinery sharing and of stakeholders.” ° climate risks,” Rudik said. employee-owned cooperative “The proliferation of large firms. The second broad category Rudik amounts of data has really helped pertains to understanding the continued from page 6 because now, for example, we business climate in which these have implemented other policies in have all this weather and crop firms operate. This research uses response like renewable portfolio information spanning large regional economic models and standards (intended to increase portions of the earth. We need econometric approaches such use of wind, solar, and biomass to use this data to advance our as difference-in-differences, to energy) and clean power plants. understanding of all sectors of systematically assess impacts of Rudik said such efforts are the economy and how they’ll be changes in rural communities. A not as effective as a tax because affected as the climate changes.” °

22 | ISU Department of Economics Update Orazem continued from page 7 the Central Intelligence Agency something that’s a capstone for (CIA) and an American-British their programs. You have to make Meyer economist, as a recipient of an sure that if somebody decides to continued from page 8 honorary doctorate at Hilton. come to Iowa State, that they get from former faculty member James Faculty, staff, alumni, and Julius the challenge that they’re looking Prescott and his wife, Jeri. family members attended a for. It would be a shame if they “I feel honored to be recognized department reception at Heady weren’t given that opportunity.” for my research at this early stage where Orazem presented her “You take lots of different of my career, and am grateful for with a department award for classes and you don’t get a chance the continued generosity of Jeri Distinguished Service to the to use everything. Research is a way Prescott,” states Meyer. Economics Profession. (See more of getting your skills aligned. If you After graduation, he hopes to find on page 16). have kids who are willing to put in a job at a university that will allow But perhaps Orazem’s crowning the time, it’s not that hard to find him to teach economics to future achievements have been in his an interesting question and find an students, as well as to continue to involvement with his students. He interesting data set and play with pursue his research interests. ° helps Economics Club members it. Or if I don’t have the skill set identify and bring in inspiring that they need, to find someone economists from all fields — many who is able to work with them.” of them alumni — as speakers for For example, Dr. Elizabeth Summers the club meetings. (See the box Hoffman has now taught two continued from page 19 on page 7 for a sampling of the or three undergraduates in every in how the store was doing, so I’d speakers and topics from this year.) one of her graduate classes on sneak on the computer when I Each year, he helps club members behavioral economics. Kathlina was printing out the signs.” plan a trip to the Berkshire Roat is the first undergrad who “Kids should start working Hathaway annual meeting in finished an entire project under young. You see people who are Omaha, and this year, even Hoffman. Roat will graduate in lazy and it all kind of leads back to participation in a coveted question- December with a triple major what they did as 14- to 18-year- and-answer session with company in global resource systems, olds. The people who went and CEO Warren Buffett. mathematics, and economics. got the job right away, are the Orazem also acts as motivator “Working with the ones that know how to grind. for his undergrad students to do undergraduates is the most fun,” They’re working a job in college, research and submit their papers Orazem said. “Trying to figure out making it work, and paying for to both the Midwest Economics a project, how to design it, how to that stuff. So it’s important to Association annual meetings and, figure out something you can finish have a job.” starting this year, to the Economics in one year, or hopefully, if I catch “Networking and being Scholars Program annual them early enough, two years. It involved in clubs is important too. conference at the Dallas Federal really helps if you start your junior That’s kind of how I met most of Reserve. You can see four examples year because by your senior year, the people who were like minded, of the results of these efforts on you have so many other things to hanging out in those circles, page 14 and read how the students worry about, like finding a job or including the Economics Club. I’m feel about their professor. moving.” interested in things that revolve “I’ve always had undergraduates “It’s just fun to try to take an around economics and that stuff is who’ve wanted to work with me idea that somebody has and find important to me, and that’s why I and I’ve had lots of students over something that they can do with appreciate the degree. Economics the years, but usually no more that idea. I think that’s a blast. It’s has just kept me interested in than one or two at a time. Now why you become an academic, everything that’s going on in the there’s so many more students, really, because you want to work world, that’s the biggest value.” ° and so many are coming with with smart kids. It’s nice to have credits already, that there are a lot that opportunity and amazing to more of them who want to do work with so many of them.” °

ISU Department of Economics Update | 23