EconomicsDEPARTMENT OF Annual newsletter • FALL 20 06

In Memory of Raymond F. Mikesell

the foundation for the postwar how a professor could afford to give economic expansion. Ray’s job this much money away,” he said. was to provide the data for White “You do it like this. Save 5 percent to use against Keynes’s attempts from every paycheck and invest to preserve British interests. Many it, even if it’s only at 3 percent. economists would have been Eventually, you’ll have a million worried to be on the opposite side dollars, too.” He looked up again, of an argument from Lord Keynes, and then with perfect timing added, but Ray was never a timid man. “Of course, it helps if you live as After the war, Ray taught at the long as I have.” The crowd broke University of Virginia and was an into laughter, then applause. Ray adviser to the Department of State smiled, and walked off the stage. on Saudi Arabia and Palestine. In Ray’s obituary was published 1957 he became wrapped up in the in The New York Times and The red scare and left Virginia to take Economist. Both used the occasion Raymond F. Mikesell the W. E. Miner Chair at Oregon. of his passing to promote one of He loved the Cascades. His his favorite causes—that it was Raymond F. Mikesell, professor doctoral students love to talk about now time to reform the IMF and emeritus of economics at the how Ray would wear them out on perhaps abolish the World Bank. University of Oregon, passed away the trail and then sit around the The department has posted a on September 12, 2006, at his campfire while they recovered, memorial site at economics/people/ home in Eugene, from age-related smoking cigars and telling them faculty/mike/index.htm. Anyone causes. He was ninety-three. what they needed to do for their with stories to post about Ray may Ray Mikesell had a remarkable dissertations. send them to harbaugh@uoregon life as an academic, adviser to Ray’s political beliefs were .edu. the United States government, interesting. As a college student he outdoorsman, and author. He had supported the socialist Norman I n t h i s i s s u e : earned his Ph.D. in 1939 from Thomas, and he said that every war Greetings from the Ohio State, and after several years the United States ever fought could Department Head...... 2 at the University of Washington and should have been avoided— Welcome Back, Joe!...... 2 he became an adviser to Assistant “and that includes the revolution!” Summer Camp...... 3 Secretary of the Treasury Harry He was an environmentalist and Graduate Program Notes...... 4 Dexter White. also a firm believer in markets and Graduate Profile: Helen Naughton.... 4 Ray is believed to have been development. He resigned from the the last surviving U.S. economist Sierra Club over their opposition Undergraduate Program Notes...... 5 at the 1944 Bretton Woods to the North American Free Trade Alumnus Profile: Michael Hutchison... 5 Conference, where White and Agreement. Faculty Notes...... 6 John Maynard Keynes negotiated In 1998 Ray endowed the chair Alumna Profile: Kassi Sande...... 7 the design of the World Bank, the in environmental and resource Undergraduate Profile: International Monetary Fund, and economics now held by Trudy Lindsay Steiert...... 8 the General Agreement on Tariffs Cameron. At the speech announcing Oregon Economic Forum...... 9 and Trade. These institutions his gift, Ray walked slowly to the Selected Faculty Publications...... 10 ended the prewar British system podium, then stopped and looked Pledges and Donations...... 10 of colonial preferences, funded up at the students and their parents. Our Academic Genealogies...... 12 the European recovery, and laid “Some of you might be wondering Welcome Back, Joe! The department enthusiastically welcomes the return of Joe Stone as a full-time faculty member Our new after a number of years in UO department head, Larry Singell, lets administration, including nine his hair down. years as dean of the College of Arts and Sciences. Joe received his Ph.D. from Michigan State University in 1977. He worked for two years at the U.S. Bureau of Labor Statistics, and joined the UO in 1979. In 1984 he Greetings from the returned to Washington, D.C., for a one-year stint as a senior economist Department Head Joe Stone on the president’s Council of For seven years you have been Economic Advisers, advising the Upon the death of James Tattersall greeted by the eloquent musings CEA and the White House on while serving as department head of Van Kolpin as department head. international trade policy. On his in 1988, Joe stepped up to chair the However, like Cincinnatus, Van has return to Eugene in 1985, Joe was department from 1988 to 1992, a relinquished his reign and returned named the W. E. Miner Professor of move that significantly altered his to the quiet life of an academic. Economics, an endowed chair he career path for the next eighteen Thus, as the new department head, continues to hold today. years. He became associate dean for let me say “hello” for the first Joe’s rapid ascension from a social science from 1992 to 1996, time. Van left the department in newly minted Ph.D. to an endowed and interim dean of the College of excellent shape. During his tenure, chair holder is explained by his Arts and Sciences from 1997 to 1998. we hired nine new faculty members extraordinary research and teaching He then became dean from 1998 to (including our newest, Jeremy contributions in two distinct 2006, with oversight responsibilities Piger), undergraduate enrollment areas in economics. His doctoral for over 60 percent of the university’s increased by more than 50 percent, dissertation was on international faculty, academic programs, and and this year’s doctoral class is trade, yet he worked at the Bureau students. During his deanship, Joe the largest in department history. of Labor Statistics and was helped guide the college through Currently, the department has initially hired at Oregon as a labor extraordinary financial difficulties. twenty-one faculty members, forty economist. Primarily an empiricist, He maintained high academic Ph.D. students, nineteen master’s his research in international and standards that never compromised students, and nearly 400 majors. labor economics appears in the quality through the implementation This growth reflects the vibrant leading general-interest journals of carefully designed economic atmosphere within the economics as well as in field journals. Much incentives rather than administrative department that I believe you of his research has been supported directives. He received strong would recognize as readily as your by prestigious grants from sources support from both the faculty old stylish haunts in PLC. such as the National Science and students across the sciences, The success of our department Foundation, the U.S. Department of humanities, and social sciences—not is intimately connected to our Labor, and the U.S. Department of an easy accomplishment, especially alumni and other friends of Education. during difficult financial times. the department. Indeed, our Before being diverted into Throughout his years as dean, greatest accomplishments rest administration, Joe taught a wide Joe maintained a fairly regular in the contributions of you, our range of courses in international presence in our department. He intellectual progeny, who generate and labor economics as well as sustained a high-quality program returns well beyond what we could introductory economic principles, of research and publication and a produce individually. Thus, we and was consistently among the superb record of supervision and share these stories with you in department’s best instructors. During assistance with graduate student hopes that we may remain a family his first ten years at Oregon, he was research. Although his leadership united by a common intellectual adviser for more Ph.D. dissertations as dean will be sorely missed by heritage. PLC calls like a birth river than anyone else in the department, the university as a whole, we are to a salmon—so, please come by if a reflection of his concern for delighted to have Joe return as a you ever swim back upstream. students and his field versatility. full-time colleague in economics.

 N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS Middle School Summer Camp This summer the department held its first annual Summer Day Camp for Ninth-Grade Economists for students from Springfield Middle School. Bill Harbaugh and Bruce Blonigen organized the free camp, with a lot of volunteer help from the rest of the department. The goal was to encourage bright kids from low socioeconomic- status families to go to college. Everybody involved thought it went over very well, we think the kids learned a little economics, and the department intends to do it again next year. Ryan Knutson, UO journalism student and editor in chief of the Oregon Daily Emerald, wrote the following article about the camp. We thank Ryan and the Emerald for permission to reproduce the article, which we’ve edited for brevity. Jo Anna Gray and students demonstrate how banks change the money supply. Two UO Professors Run a Free Summer Camp to Teach Economic Principles to Low-Income Youth Economics may not sound like and got to see a human brain, is a point of why we’re doing this.” the usual fantasy camp for middle which is owned by the psychology In the future, Harbaugh and school students, but UO economics department. Blonigen said they hope corporate professors Bill Harbaugh and Bruce The camp, which Harbaugh and sponsors will invest in the camp Blonigen are using economics Blonigen said is not a revolutionary to support the youth who could games, gift certificates, and the idea, is also linked to Harbaugh’s someday be working for their lure of university life to get alternative diversity plan to companies. these youngsters excited about create diversity at the university “If everyone collectively economics and—above all—going by inspiring low income eighth behaves as one, we all do better,” to college. grade students to want to attend economics professor Van Kolpin “I think there are really two college and perhaps later become said to the students during goals to what we’re doing. One professors. Prisoner’s Dilemma, a game that is to give them a sense of what The students for this year’s teaches the children about the they can do with their math skills, camp were recruited from economic tension between doing which is economics as an applied Springfield Middle School, where what’s best for the individual mathematics social science,” 75 percent of the students are as opposed to the whole group, Blonigen said. “The second thing is eligible for free or reduced lunch, which leads to the need for some to give them realistic expectations according to 2003–4 [figures from government regulation. about going to college. . . . We the] National Center for Education And they got it, Harbaugh want to get across more than just Statistics. The median household said. “When you think about the ‘I want to go,’ but that it takes income for Springfield residents children, that’s what they do, discipline.” is $37,233, roughly $9,000 less they’re professional game players,” “It’s awesome,” Michael and his than the state average, according to Harbaugh said. “That comes really friends said after their first day of Sperling’s Best Places data. naturally to children, to figure out camp ended. Monday the campers “All these kids are bright, what the situation is, to figure out played games, watched clips from they’ve got lots of hopes right what the rules are . . . figuring out popular teen movies featuring now,” Blonigen said. “But at the how to do the best they can.” economics, toured campus, and ate same time at least we’re pulling “They’re catching on better than at Carson dining hall. The next day, from a population that wouldn’t the average 201 student,” Blonigen they played more economics games necessarily go to college, and that said, chuckling.

N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS  Graduate Program Notes Fall 2006 began with more Failure, Substitutes, Adjustments, We also place emphasis on than sixty graduate students in the and Inattention,” addresses several cultivating our students’ teaching UO economics department, with shortcomings in stated preference abilities. This year, the Outstanding forty-two of these in the doctoral choice scenarios and data analysis. GTF Teaching Award was shared by program. This includes a class of Kleinsorge Research Kelii Haraguchi, Kevin Henrickson, fourteen first-year Ph.D. students. Fellowships were made this past and Chong Uk Kim. In addition, Our master’s program continues summer to four very promising Kevin Henrickson received the to be strong. We graduated fourteen Ph.D. students: Kelii Haraguchi, prestigious, campuswide Donald master’s students last year and four Ryan Herzog, Paul Shea, and Nino and Darel Stein Graduate Student new students joined the program Sitchinava. Teaching Award. this fall. A significant number of our master’s graduates use their training to enter doctoral programs, Graduate while others find jobs in the private Profile: sector or, in the case of many international students, work for Helen their home country’s government. We graduated three Ph.D. Naughton students last year. Bornali Bhandari How did Helen is assistant professor at Fitchburg Tammela Naughton, who State College, Massachusetts. grew up in Tallinn, Estonia, Ryan Bosworth is assistant come to be a graduate professor at the School of Public student at the UO? and the environment. Her paper, and International Affairs, North Helen Tammela was fourteen “International Cooperation in Carolina State University in when the country regained its Environmental Policy,” was a Raleigh, and Kevin Henrickson independence from the Soviet cowinner of the Best Field Paper is assistant professor at Gonzaga Union. The fall of communism Award in 2005. To prepare for the University in Spokane, Washington. resulted in many entrepreneurial job market, Helen has presented Several former Ph.D. students opportunities, from selling her work at conferences in were promoted or moved to new waffles to trading stolen copper; Eugene, Dublin, Seattle, Vienna, positions recently. Man Chiu Helen’s family rented bedrooms and Vail. She is planning on (Sunny) Wong (2002) is now to tourists. In 1994 Gwen and completing her Ph.D. during the assistant professor at the University Lawrie Robertson from Issaquah, 2006–7 school year. of San Francisco, Rossitza Wooster Washington, stayed with Helen’s In addition to her dissertation, (2002) and Sarah Tinkler (1989) family, and arranged for Helen, Helen has worked with Bruce have joined the faculty at Portland fourth of five siblings, to spend Blonigen, Ron Davies, and Glen State University, William Branch her senior year in Issaquah High Waddell on spatial patterns in (2001) is assistant professor at UC School. With the help of her host foreign direct investment, and Irvine, David Aadland (1997) was parents, Bill and Carol Werner, with Peter Lambert on equal promoted to associate professor at Helen continued her studies in sacrifice taxation. This August, the University of Wyoming, Bruce the United States. In 2000 she Helen was one of fifty young McGough (2000) was promoted graduated with an economics economists chosen by the to associate professor at Oregon degree from Lewis and Clark National Science Foundation to State University, Joel Carton (1999) College. She then worked as attend a meeting of Nobel Prize has a one-year visiting position at an economist for the Integrated winners in Lindau, Germany. Oberlin College, and William Hall Utilities Group in Portland and Among others, she met Reinhard (2005) has taken a position at the Denver, and returned to school Selten, who won the Nobel Prize Bureau of Economic Analysis in in 2002, having married Oregon in 1994 (and appears in the Washington, D.C. native Joe Naughton. Her school picture alongside Helen). This year’s Best Field Paper of choice was the University of Helen and Joe have a beautiful Award by a current Ph.D. student Oregon. Quite a journey! baby boy, Henri, and their went to Daniel Burghart. Dan’s Helen’s dissertation involves favorite activities include hiking paper, entitled “Questioning Some issues related to globalization and cross-country skiing. Maintained Hypotheses in Stated Preference Estimation: Allowing for

 N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS Undergraduate Program Notes Our faculty’s dedication to School of Economics and Political the Federal Reserve Bank of Kansas high-quality teaching continues to Science, and Harvard. It is always City. In some cases, internships have be reflected in the strength of the exciting—although bittersweet—to see turned into full-time positions, and undergraduate economics program our students move on to the next stage in all cases the internships provided at Oregon. During the 2005–6 of their lives. a valuable opportunity to allow academic year, we saw 197 students Students continue to make students to help shape their education graduate with economics majors, excellent use of internship with their future goals in mind. and this year is shaping up to be experiences to explore potential Fifty-four students were awarded another year of high enrollment, careers. During the past academic honors in economics, a distinction with 386 majors and 142 minors year, over twenty students received that requires a high GPA in upper- at the beginning of fall term. The academic credit for internships at division economics courses and a numbers of majors per faculty firms that include Chinook Capital thesis written in consultation with member continues to be one of the Management, Smith Barney, Merrill a faculty adviser. In additional to highest in the university—efficiency Lynch, Marcus & Millichap, Pacific the individual honors thesis, many that has allowed the department Source, the Saudi British Bank, and Continued on page 6 to increase the number of faculty positions over the past five years. An important element of the Alumnus Profile: economics program is the peer advisers, an active group of students Michael who help advise many current Hutchison and prospective economics majors and minors regarding graduation Michael Hutchison received requirements. In addition, the his Ph.D. in economics from peer advisers prepare a quarterly the University of Oregon in newsletter, Utility Times, which 1983. Michael’s first position provides an opportunity for them was research economist at the to write about their experiences as Federal Reserve Bank of San economics students. Special thanks Francisco (1983–86). He joined go to David Yaffe for his work as the economics department at UC and the effectiveness of central editor of Utility Times during this past Santa Cruz in 1985, where he bank foreign exchange market academic year. Information regarding continues today. Michael was the intervention. He has published the peer advising program, including head of a section at the Bank for over 100 articles and eight books back issues of Utility Times, can be International Settlements (1999– and monographs, and over the found at darkwing.uoregon.edu/ 2001) in Basel, Switzerland. He past decade has given more than ~econpeer/peer.html. served as department chair of 100 professional presentations in Once again, the job market proved economics at Santa Cruz (2001– over twenty countries. to be strong for our graduates. Our 3), and recently concluded a stint As a graduate student at undergraduate majors have accepted as interim dean of social sciences Oregon and for a number of years positions with a wide variety (2003–6). thereafter, Michael took many of private firms, including J. P. Michael is a leading expert skiing and hiking trips into the Morgan, EcoNorthwest, Ameriprise in international finance and the Cascades with the chair of his Financial, Target, and a variety of Japanese economy, frequently dissertation committee, Ray other financial and corporate leaders. consulting with central banks Mikesell, whose recent death is We have a number of students going and international institutions, highlighted in this newsletter. In directly into government or service e.g., the Bank of Japan, Reserve more recent years Michael has positions, such as the Federal Bank of New Zealand, Hong Kong taken up golf (an activity that Ray Reserve, AmeriCorps, and Teach for Monetary Authority, and Bank Mikesell viewed with disdain) America. And, of course, we have of Sweden. His recent research and sailing. Michael’s wife, Greta, students going directly to graduate focuses on the causes and costs teaches French at UC Santa Cruz, school in economics, political of financial crises in developing their son recently graduated from science, business, public policy, economies, the role of the IMF in UC Davis, and their daughter and law at programs such as UC Los the international financial system, has just begun college at UC San Angeles, UC Davis, Miami University, financial instability in Japan, Diego. Georgetown University, London

N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS  Undergraduate Program Notes Continued from page 5 Faculty Notes The department faculty for climate-change mitigation students earn honors in economics continues to thrive on all fronts. policies and environmental health through group projects that stem Our research results, some of which protection in the U.S. and Canada. from a course developed by William we list separately below, boasts of She works with J. R. DeShazo Harbaugh and Bruce Blonigen to many productive collaborations (UCLA), Ryan Bosworth (North involve our students and department within the department faculty, Carolina State), and various more with the local community. After across departments within the current UO doctoral students. meeting with various community university, with members of the Trudy teaches microeconomic leaders, projects are developed that larger academic community of principles and the environment, analyze an economic issue for a local economists, and with current and environmental and resource nonprofit or government agency. past UO students (both graduate economics, microeconometrics, Two-person teams of students and undergraduate). We have and econometrics. Trudy’s Mikesell present their results in honors papers again added new faces to our Environmental Economics Lab is and presentations to the local agency. faculty and thereby continue also enjoying NSF grant funding. This year the students worked on a to expand our array of research Shankha Chakraborty received variety of projects—from developing programs and teaching offerings. the Reinhold Fellowship. He an index of business conditions for With ever-increasing numbers examines the effect of volatility central Oregon to estimating the of undergraduate and graduate on economic growth and works future demand for nursing-home students, we continue to represent on explaining the epidemiological beds in the Eugene-Springfield one of the most vibrant, hard- transition. He coauthors with Nick area to designing a summer camp working, and intellectually curious Magud and colleagues at the IMF, to improve the likelihood that groups on campus. Our exposure Iowa State, the Federal Reserve children from low socioeconomic in the greater community of Bank of Philadelphia, and the backgrounds will attend college. This professional economists also grows University of Alicante. Shankha is just a subset of the projects; all the as we now house an associate presented his work at the Canadian papers are available at economics editor of The American Economic Macroeconomics Study Group .uoregon.edu/honors. Note that this Review, a coeditor of the Journal and the University of Kentucky. important course is a direct result of International Economics, and He teaches macroeconomics and of alumni support, as its inception the incoming president of the development economics. was funded by a UO Williams Association of Environmental and Ron Davies is enjoying a Council grant and it is sustained by Resource Economists. In what sabbatical as a visiting scholar at a generous donation by alumnus follows, we briefly highlight for you Trinity College, Dublin. His current Richard D. Fulmer. each department member’s main research includes tax competition The award for Best Individual activities and interests. for heterogeneous foreign direct Honors Thesis went to David Yaffe Bruce Blonigen was named an investment (with Carsten Eckel, for his paper, titled “To Bluff or Not associate editor of The American University of Goettingen). He to Bluff: Principles and Practice from Economic Review and coeditor of the also coauthors with people in Laboratory Experiments,” while the Journal of International Economics. Sweden, Iceland, and Eugene on award for Best Group Honors Thesis He continues his work analyzing issues surrounding foreign direct was earned by Jessica Brown, Sheena the effects of trade protection on investment. Ron presented his Pietzhold, and Joseph Reiter for their the U.S. steel industry as well as work in Germany, Iceland, and work on “Housing Price Models for the role of ocean port efficiencies Ireland last year, and is going to the Walnut Station Redevelopment on trade flows. Bruce has recently spread the gospel in Scotland, the Area.” coauthored with Wesley Wilson, Van Netherlands, Germany, Ireland, Finally, our students continue to Kolpin, Glen Waddell, Ron Davies, Sweden, and Norway this year. be the recipients of many university and Helen Naughton. He teaches Ron taught courses on international honors. Thirteen economics majors trade and industrial organization trade and multinational received Latin honors and five were and coteaches Economic Analysis of corporations last year. inducted into Phi Beta Kappa. In Community Issues I and II with Bill Tim Duy has a full plate with addition, Sean Wallace received Harbaugh. a mix of teaching, advising, a special honor when he was Trudy Cameron was elected directing the Oregon Economic designated a member of the Phi Beta president of the Association of Forum, working on a set of regional Kappa Oregon Six, an honor received Environmental and Resource economic indices, and a little by only six outstanding students Economists. Her research Fed watching on the side. He each year. interests concentrate on demands continues to teach contemporary

 N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS economic issues, principles of and with Jim Andreoni (UC San the forward premium predicts macroeconomics, and evolution Diego) on a new model of people’s movements in the spot exchange of economic thought. Tim gave risk-taking behavior. Bill gave a rate, but with the wrong sign. presentations on the U.S. and talk in Paris and will give a talk in A second project (with Bornali Oregon economy in Eugene, Salem, College Station, Texas, soon. He Bhandari, Fitchburg State College) and Portland. coteaches the Economic Analysis concerns a serious misspecification Chris Ellis is interested in the of Community Issues course with of models of the trade balance—the economic origins of democracy Bruce Blonigen and also teaches exclusion of cross-price effects in (with coauthors John Fender of the experimental economics. both demand and supply linking University of Birmingham, U.K., Steve Haynes studies (with import and export markets. Steve and Oz Dincer of Massey University Avik Chakraborty, University of teaches three online courses: in New Zealand) and lobbying firms Kentucky) the forward premium principles of microeconomics, (with Anne van den Nouweland). paradox—the bizarre finding that Continued on page 8 He teaches public economics, game theory, and microeconomics. George Evans is working on the Alumna Profile: role of expectations and bounded Kassi Sande rationality in business cycles, asset prices, and macroeconomic We know that undergraduate policy. His current coauthors are econometrics textbooks often from the University of Cambridge find their way to graduate school, (UK), University of St. Andrews consulting firms, and—okay—a (Scotland), UC Irvine, Oregon State, few end up on the used bookshelf Princeton, NYU, the University at the bookstore. But perhaps of Tennessee, and the St. Louis none is better traveled than and Cleveland Federal Reserve Kassi Sande’s econometrics Banks. George teaches time series textbook, which spent the past econometrics and macroeconomics. year (with her) in Ayacucho, in Jo Anna Gray continues to work the Andean highlands of Peru. opportunity to help these families on the economics of nonmarital Better yet, she has actually used gain access to better health care, births and the impact of state- it for her research about the local food, utilities, and education level tax and expenditure policies population. through access to the higher on growth rates of state personal After graduating from Oregon prices and steadier demand of a income. She coauthors with Bob in 2006 with a double major global market “makes the cold O’Brien (UO, sociology), Neil Bania in economics and journalism: showers and constant bacterial and Jean Stockard (UO, planning, public relations, Kassi moved infections that have become a public policy and management), to Ayacucho to volunteer with part of my life worth it.” When and Joe Stone. Jo Anna teaches Foundation for International Kassi left Ayacucho this past monetary theory and advanced Community Assistance (FINCA spring, FINCA Peru Exports was macroeconomic theory. She is also Peru), a nonprofit microfinance “going fabulously” and it has now heavily involved in the university’s organization. Recognizing that the started accepting orders. decennial accreditation review, artisans in this impoverished and After wrapping up her time which takes place this year. war-ravaged area lacked a reliable in Ayacucho, Kassi spent several Bill Harbaugh was awarded market for their traditional months traveling through an Oregon Community Credit artwork, she developed the idea South America. Among other Union grant for work on the for FINCA Peru Exports. This adventures, she went piranha neuroeconomics of retirement nonprofit, cooperative business fishing, swam with pink decision making. He is using exports wool weavings, alabaster dolphins, and—as the photograph fMRI brain imaging to study stone carvings, and knitted and suggests—held a baby crocodile philanthropy with Ulrich Mayr painted items to wholesalers (very briefly!) in her mouth. (UO, psychology), John Chalmers in North America and Europe (And some people think that (UO, finance), and Cami Kuhnen with the goal of providing a economists are a boring lot. . . .) (Northwestern University). permanent stream of income Kassi is now back in the Bill works with Michael Visser to support the 200 associated United States, exploring the (Sonoma State) and Naci Mocan artisans and their families. As possibility of graduate studies in (University of Colorado, Denver) Kassi wrote last winter, the international development. on the rationality of criminals,

N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS  Faculty Notes Maryland and NBER), Daniel Economic Association (AEA) Continued from page 7 Heymann (the UN’s Economic in 2006, the Inter-American Commission for Latin America Development Bank, Universidad principles of macroeconomics, and and the Caribbean), Sebastian Torcuato Di Tella, University of International Economic Issues. Galiani (Washington University, St. San Andres, and Universidad del Van Kolpin’s current research Louis), and Shankha Chakraborty. CEMA. He teaches international focuses on investigating the impact Nick presented at the Latin finance and macroeconomics. that regional competition for firm American and Caribbean Economic Robin McKnight is currently location may have on realized Association (LACEA) in 2005 working with Jon Gruber (MIT), technological development (with and 2006, the LACEA Regional Amitabh Chandra (Harvard) and Bruce Blonigen), game theoretic Integration Network, American Amy Finkelstein (MIT), and is analysis of the higher education market, especially in regard to the effects of declining state and Undergraduate federal aid (with Mark Stater, University of Georgia), and using Profile: shared irrigation systems as a Lindsay Steiert context for identifying the factors which determine the allocation Originally looking at mechanism employed in practice the University of Oregon to (with David Aadland, University of pursue a degree in broadcast Wyoming). Van recently finished his journalism, Lindsay Steiert service as our department head and never considered a career path is enjoying a sabbatical until this in economics. After completing spring. He teaches doctoral-level two required economics courses microeconomics and game theory. for her journalism major, she to new students, parents, Peter Lambert is working soon discovered a passion for and campus officials during on issues surrounding the economic reasoning. Three years orientation programming as well measurement of pro-poorness of later, this senior from Milwaukie, as throughout the school year. income growth patterns, and on Oregon, will be graduating in She spends additional time as a direct and indirect effects of ethnic the spring with a double major peer adviser for the economics and religious fractionalization and in economics and journalism: department and has recently polarization on income inequality public relations and two minors become the editor of the quarterly and welfare programs across in business administration and publication Utility Times. the United States. His current communication studies. Lindsay Lindsay is especially excited coauthors are Oz Dincer (Massey also plans to pursue honors about graduation as she will be University, New Zealand), Helen in economics and is exploring accepting her bachelor’s degree as Naughton (UO), Essama Nssah (the topics for her thesis, with an a first-generation college student. World Bank’s Poverty Reduction eye toward weaving together She credits Professor Bruce Group), and Thor Thoresen her interest in economics and Blonigen for his International (Statistics Norway). Peter presented communications. Trade course, which sparked at the first International Conference While maintaining a 3.87 her interest in developing of the Society for the Study of grade point average, Lindsay economies. As a result, she Economic Inequality. He teaches has managed to support herself hopes to temporarily move to econometrics, microeconomics, through school working as a Ghana after graduating to work mathematics for economists, and waitress at a local restaurant. She on an AIDS awareness campaign. public economics. also manages to invest her time After her experience abroad, she Nick Magud studies capital with multiple leadership roles on will prepare to boldly enter the control, exchange rate regime campus. In 2005 she was hired workforce. She is confident that choice, export volatility, dynamics as a member of the UO Student her double major will lead her of international trade, as well Orientation staff. The following toward a position in corporate as asymmetric business cycles year she took on a supervising relations, and predicts that this and fiscal policy volatility. position as student director of line of work will be a perfect His coauthors are Ken Rogoff the same program. This position complement to her dual interest (Harvard and the National Bureau has allowed Lindsay to serve in communication and business of Economic Research [NBER]), as an official host and resource economics. Carmen Reinhart (University of

 N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS interested in updated estimates magnitudes of changes in fertility of personality on competitive of the price elasticity of demand versus marriage behavior in outcomes. His projects include for medical care. She presented nonmarital fertility rates and on the coauthorships with Jack Barron at the AEA annual meeting, role of state tax and expenditure and John Umbeck (Purdue the annual Health Economics patterns on economic growth. His University); Daniel McMillen Conference, the NBER Health current coauthors are Neil Bania (University of Illinois, Chicago); Care Program Meeting, and UC and Jean Stockard (UO, planning, David Zimmerman (Williams Davis. Robin teaches principles public policy and management), College); Dmitriy Chulkov of microeconomics and upper- Jo Anna Gray, and Robert O’Brien (Indiana University, Kokomo); division courses on health (UO, sociology). Bradley Curs (University of economics and public economics. Mark Thoma is currently Missouri, Columbia); Oguzhan Jeremy Piger joined us in working on the costs of central Dincer (Massey University, New September from the Federal bank overshooting. He continues Zealand); Larry Singell, Bruce Reserve Bank of St Louis. He working with Wes Wilson. Mark Blonigen, Ron Davies, and Chris is currently working on using teaches macroeconomics, money Ellis; and Helen Naughton, Kelii nonlinear time-series models to and banking, monetary theory and Haraguchi, and Dan Burghart improve forecasts of important policy, and econometrics. (current Oregon doctoral students). economic variables, such as Anne van den Nouweland was Last year he taught principles employment and industrial named an associate editor of the of microeconomics, labor, and production. He works with Andy Journal of Public Economic Theory. industrial organization theory. This Levin (Federal Reserve Board), She currently studies pair-based year he will also be offering his James Morley (Washington stability concepts for networks seminar in contract theory. University, St. Louis), Marcelle (with Marco Slikker, Technische Wes Wilson works on demand Chauvet (UC Riverside), Robert Universiteit Eindhoven, the and supply of transportation Rasche (Federal Reserve Bank Netherlands), equilibrium concepts services and maintains coauthor of St. Louis), Angela Davis (UO, for local public good economies relationships with Simon Lundquist College of Business), with Myrna Wooders (Vanderbilt Anderson (University of Virginia), and Lisa Sedor (Notre Dame). University), and connections Kenneth Train (UC Berkeley), Jeremy presented at the Society between coalitional games and Bruce Blonigen, John Bitzan for Nonlinear Dynamics and strategic games (with three coauthors (North Dakota State), and Mark Econometrics meetings, the based in Galicia, Spain). Anne Burton (University of Tennessee). University of Utah, OSU, and visited the University of Santiago He gave lots of presentations at Southern Economic Association de Compostela and the University venues that include the American meetings. He will teach time- of Melbourne, and presented Economics Association meetings series econometrics and at the Coalitions and Networks and the Navigation and Economics macroeconomics. workshop and the Public Economic Technology Symposium. Wes Larry Singell’s current research Theory conference. Anne teaches teaches applied microeconometrics, is on the role of human capital in microeconomics and game theory. in which students learn to frame determining managerial skill and Glen Waddell is currently economic problems in theory and how changes in U.S. financial aid involved in projects relating to then estimate what is necessary to policy affect college access. He peer effects and the influence answer the economic problem. maintains coauthor relationships with Glen Waddell, Joe Stone, John McDowell (Arizona State), Oregon Economic Forum Mark Stater (University of Georgia), Brad Curs (University of The third annual Oregon and Robin McKnight presented Missouri, Columbia), Paul Seaman Economic Forum, held on October recent research. (University of Dundee), and Dan 11, exceeded our expectations Special thanks go to the forum’s McMillien (University of Illinois, with almost 300 people turning sponsors, Providence Health Chicago). Larry taught principles of out to spend the morning learning Plans, the Regence Group, Colliers microeconomics, labor economics, about the impact of the health-care International, Oregon Business and econometrics. crisis on Oregonians. The keynote magazine, Oregon DIRTT (Doing Joe Stone completed his term speaker was former governor It Right This Time), AARP, Oregon as dean of the College of Arts and John Kitzhaber, who delivered a Community Credit Union, and Sciences this past year and is powerful call to reform the health- Specialty Polymers, and to the currently on sabbatical leave. His care system. In addition, faculty alumni who have provided financial research focuses on the relative members Tim Duy, Mark Thoma, assistance to this program.

N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS  Distance Profiles in Hedonic Gray, Jo Anna and Joe Stone. Selected Faculty Property Value Models,” Journal “Ricardian Equivalence for Publications of Environmental Economics and Subnational States,” Economics Management, vol. 51, 2006: 26–45. Bulletin, vol. 5, 2006: 1–9. Here are some highlights Carpente, Luisa, Balbina Casas- Harbaugh, William T., Kate from our extensive list of recent Méndez, Ignacio García-Jurado, and Krause, and Lise Vesterlund. publications. For other papers, and Anne van den Nouweland. “Values “Learning to Bargain,” Journal of some very recent work which may for Strategic Games in Which Economic Psychology, forthcoming. still be in progress, you are referred Players Cooperate,” International Lambert, Peter J. and Giuseppe to individual faculty members’ Journal of Game Theory, vol. 33, Lanza. “The Effect on Inequality of websites and to the website 2005: 397–419. Changing One or Two Incomes,” containing all UO working papers, Chakraborty, Shankha and Journal of Economic Inequality, which is econpapers.repec.org/ Tridip Ray. “Bank-Based and forthcoming. paper/oreuoecwp. Market-Based Financial Systems: McKnight, Robin. “Medicare A Growth-Theoretic Analysis,” Balance Billing Restrictions: Barron, John M. and Glen Journal of Monetary Economics, Impacts on Physicians and R. Waddell. “Work Hard, vol. 53, 2006: 329–350. Beneficiaries,”Journal of Health Not Smart: Stock Options in Davies, Ronald and Benjamin Economics, forthcoming. Executive Compensation,” Liebman. “Self-Protection: Anti- Owyang, Michael, Jeremy Piger, Journal of Economic Behavior and Dumping Duties, Collusion, and and Howard Wall. “Business Cycle Organization, forthcoming. FDI,” Review of International Phases in U.S. States,” Review of Blonigen, Bruce, Ronald Economics, forthcoming. Economics and Statistics, vol. 87, Davies, Glen Waddell, and Helen Duy, Tim. University of Oregon 2005: 604–616. Naughton. “FDI in Space: Spatial Index of Economic Indicators, Singell, Larry and Joe Stone. Autoregressive Relationships monthly. “For Whom the Pell Tolls: A Test in Foreign Direct Investment,” Ellis, Christopher and of the Bennett Hypothesis at Four- European Economic Review, John Fender. “Corruption and Year Universities,” Economics of forthcoming. Transparency in a Growth Model,” Education Review, forthcoming. Blonigen, Bruce. “Working the International Tax and Public Singell, Larry, Glen Waddell, System: Firm Learning and the Finance, vol. 13, 2006: 115–149. and Bradley Curs. “Hope for the Antidumping Process,” European Ellis, Christopher and Anne van Pell? Institutional Effects in the Journal of Political Economy, vol. den Nouweland. “A Mechanism Intersection of Merit-Based and Need- 22, 2006: 715–731. for Inducing Cooperation in Based Aid,” Southern Economic Burton, Mark and Wesley Noncooperative Environments: Journal, vol. 73, 2006: 79–99. Wilson. “Network Pricing Theory and Applications,” Journal Thoma, Mark and Wesley and Vertical Foreclosure in of Public Economic Theory, vol. 8, Wilson. “Market Adjustments Railroad Markets,” Journal of 2006: 23–47. over Transportation Networks: Transport Economics and Policy, Evans, George and Bruce A Time-Series Analysis of Grain forthcoming. McGough. “Optimal Constrained Movements on the Mississippi Cameron, Trudy Ann. Interest Rate Rules,” Journal of Inland Waterway System,” Journal “Directional Heterogeneity in Money, Credit, and Banking, of Transport Economics and Policy, forthcoming. forthcoming.

2006, will be noted in next year’s Oregon Community Credit Union $500–$999 Pledges and newsletter and our apologies for Providence Plan Partners Patricia ’61 and Warren Tibbles ’60 any inadvertent omissions. Specialty Polymer Products, Inc. Kelly and Craig Gustafson Myriam and Douglas Southgate Jr. ’74 Donations $10,000 or More $1,000–$2,499 Martha and John Anderson ’71 Donations by alumni and Marvin Waring Jr. ’71 General Electric Foundation Craig Iverson ’67 others to our department are Jimmy Moyer ’57 Ann and David Worthington ’73 crucial for supporting students $2,500–$9,999 Constance ’61 and Albert The Oregon Community Foundation and faculty members in their Deanna and Gary Feldman ’77 Gutowsky ’61 Symantec Corporation teaching and research activities. Alanson Kleinsorge ’73 Walter Girdlestone ’42 This past year was one of very Lee Freiermuth ’76 Leanne ’64 and John Kennedy ’63 $100–$499 generous support, and the MediAmerica Joyce and Jack Cox ’60 Elizabeth and Mark Richanbach following is the list of new The Regence Group Helyn Corcos ’87 and Christian Mary-Louise and C. William pledges made and contributions Kristina ’93 and Michael Thayer ’85 Kambour Reinking ’64 received during the period Providence Health System Richard Price ’75 Tracey Allen from October 1, 2005, through Timothy Beeman ’96 John Ranlett ’56 Molly Butler September 30, 2006. Any Richard Spieker ’00 Revadee and Aran Thammano ’62 Julie and Rocky Dixon ’78 contributions after September 30, AARP Katherine Smiley

10 N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS Janet Litton Long ’79 and Alan Heston ’55 Dianne Danowski-Smith ’88 and David Ford Michael Long Scott Higgins ’79 Andrew Smith Terri ’87 and Ross Baker Mary ’86 and Wallace Weisenbach Barbara ’64 and William Judith Buszko Dean ’72 and Natalie Carey ’83 Pacific Continental Bank Hutchison Jr. ’63 Edward Dean ’71 Trudy Cameron Regence Bluecross Blueshield Kathy and Larry Jackson Molly and Eric Dodge ’94 Wilbur De Young ’43 Gail Smith Ben-Zion and Barouch Jere Kersnar ’79 Briar Ertz-Berger Ann Foster Farrar ’63 and Ben-Zion ’68 William Kohl ’65 David Fractor ’81 Jim Farrar Alison Polenz and John Hiatt ’92 Cindy Labbe Jason Gingerich Florence Armstrong ’43 Veronica Bachmann and Daniel Paul Lenz ’76 Kerry Gonzales Douglas Crumme ’74 Pantelis ’80 Melissa Bauer Lindsay ’86 and Laurie and Michael Grove ’67 Patricia and Daryl Dizmang June and Thomas Berry ’77 Jim Lindsay Traci Hanlon Michelle Johnson Eden and Ta-Chi Chen ’76 Crystal Litz Cary Harkaway David Eden ’94 Cheryl Chiene ’67 Suzanne ’89 and David Maddocks Janet and Ronald Hartwig George Evans Maureen and William Ferguson ’58 Dana and Michael Mahoney ’64 Audrey and Christopher Barbara Bouchard Green and Clifford Freeman ’66 Amie Manske Hatfield ’83 Douglas Green ’86 Heli Lanz ’74 Velvet Jones Milkman and Kimberly Cooper Heiney ’91 Linda Tracy ’83 and Carol and John Mitchell ’68 Martin Milkman ’86 Mary Nelson Hilton ’36 and Stephen Haynes Frank Slawson ’64 Charles Novak ’66 Howard Hilton Jacob Heintz ’04 Coriander, Inc. Ryotaro Orito ’84 Judy and Maurice Hooff ’68 Anwarullah Jatoi ’63 Valerie and Charles Feinstein ’91 Kathy Prosser Greta Nilsson Hutchison ’79 and Diane and John Kicza Ellen Price Gersh and Sheldon Diane ’54 and Jack Pyle ’53 Michael Hutchison ’83 Nan Mimnaugh McDaniel ’55 and Gersh ’67 Julia Rasor Susan Irwin Richard McDaniel ’56 Joan ’65 and Charles Haworth ’67 Anne and John Schottmiller Sr. Pamela Jodock Steven Ross ’70 Larry Jordan ’67 John Schunhoff ’74 Katherine Jones Reid Seino ’02 Kate ’69 and David Ludwig ’75 Marsha and Kevin Shaw ’74 Kathleen and Stanley Keil ’70 Ernest Seymour ’68 Barbara and Howard Teasley ’68 Jetta ’71 and Barry Siegel Van Kolpin Marsh and Michael Shadbolt ’66 Eloise ’69 and William Whitelaw Kimberly and Brad Smith ’87 Nell and Christopher Krenk ’71 Marcia Royal Shepardson ’59 Choongja and Yung-Yong Yang ’73 Loretta ’56 and Miles Rachel Lee and Jason Fee ’82 Linda Davis ’78 and Thomas Su and Hyong Kim ’64 Sonstegaard ’58 Cat Livingston Tripp ’67 Marilyn and Mark Bonebrake ’75 Julie Lung Sorenson ’77 and Mary Manning Gerlinde and Robert Ackerman ’58 Kathy Cumpston David Sorenson ’71 Kenneth McConnell Stephanie Basalyga Melody and Kim Ferguson ’73 Michael Stubblebine ’71 Robin ’76 and Patrick Andrew Beyer ’98 Henry Goldstein Vicki and Stephen Tagmyer ’84 McConnell ’75 Donald Bielen Lillian and Douglas Greer ’63 Tennise Thornton ’84 Harry McGaughey Caryn Condon Clinton Mikami ’97 Ximena Traa-Valarezo ’82 and Patrick McIntire Susan Johnson Condray ’70 and Nanae and Norio Nakahara ’74 Bob Traa ’80 Miyoko and Sach Mikami Jerry Condray ’69 Jahee and Dong-Yul Park ’82 Frank Van Vliet ’40 James Murray ’62 Kristi ’84 and Douglas Christy Putnam Scott Wagner ’04 Elaine and Robert Naper ’56 Dalenberg ’86 Anne and Willis Rader ’62 Gretchen and Lynn Wakem ’71 Sara Nofziger Ronald Davies Susan Rolston and Kenneth Cathy Webb Sarah Quist-Mazzocco ’86 Sara Drew Wood Jr. ’58 Dawn Whalin ’91 Cindy Reid and Bahram Adrangi ’82 Jennifer Bowden Ellis ’92 and Laurence St. Louis ’66 Andrew Wood ’80 Jerry Robinson Christopher Ellis The Prudential Foundation Lindsey ’96 and Kevin Wuepper ’94 Carole Romm Clark Gallagher Harold Watts ’54 Craig Wyly ’91 Susan Kopel Salamon ’74 and W. T. Harbaugh Janet and John Saunders ’69 Yungja and Suk Yoon ’72 Gabor Salamon Bill Harris Helen Tack and Steven Barsby ’62 Department of Administration Joan Salvatore Nicholas Hippert Oregon Employment Department Hecht & Hecht Life & Health Thomas Sanchez Katherine and Robert Jesenik ’80 Jane and Jerold Gnazzo Insurance Agency Inc. Nathan Sanow Terry Loerke Lornie McCormick-Goodhart and The Home Depot Sophie Saviano ’03 Lynn Lundquist Steven Knudsen ’76 Washington County Richard Sears Zahra and Hassan Pirasteh ’85 Gail Reifenstuhl Brian Shoemaker ’94 Lisa ’94 and Jason Remmer ’96 Kaylene Selk $50–$99 Richard Stenson Rebecca Seebert Misty Staebler Charles Rynerson ’84 Hanh Ta Karen Shawcross Jennifer Webster Darla and James Simasko ’86 Gail Toft-Vizzini and Daniel Vizzini Terry Simmons Margie Williams Spencer McCormick ’01 Robert Volz ’81 Larry Singell Jr. Aon Corporation Linda Ackerman Celia and Richard Wagner ’74 Mark Thoma Judy ’88 and Windsor Calkins ’67 Barry Wong ’86 Jennifer Wakayama John Thomas Jay Haladay Kirsten Manning Kelli Walker Jasmin and Mark Tung ’68 Meadowlark Homes, LLC Stephen Staloff ’75 Carol Warlick Robert Turner Michael Mathios ’97 Barbara and Jay Kaylor ’82 John Wilkins Anne van den Nouweland Kevin Riley ’92 Catherine ’86 and Chris Beckett Dougal Williams ’97 Ken VanDomelen Kenneth Seiden ’86 Kristine and Gerald Brooks ’74 Diana Wolford Theresa Venezia Robert Adler ’59 Mount Hood Community College Paul Zacha ’71 Aequitas Capital Management John Anderson Amie Abbott Acordia of Oregon, Inc. Inst Metro Study David Batchelor ’96 Andrea and Robert Anderson ’71 Bend Chamber of Commerce Preston Gates & Ellis Charles Best ’28 Michelle Arthington ’86 Elliott Powell Baden & Baker Worksystems, Inc. Daniel Blake ’70 Tara Buckley Bedney and Lockheed Martin Corporation Shankha Chakraborty Bruce Blonigen Brian Bedney ’00 Multnomah County Health William Harris ’67 Mark Brackebusch ’72 Geoffrey Berg ’98 Department Peter Lambert Rick Brammer ’86 Barbara Bailey Bergeron ’56 and Oregon Primary Care Association Nicolas Magud Karyl Cotton Lester Bergeron ’56 SBC Foundation Joe Stone Mary ’88 and Joaquim Cruz ’88 Thomas Brookes ’85 Washington County Finance Glen Waddell Leonardus De Bever ’70 Kristi Brown Division Timothy Duy ’98 Cynthia Robinson Dulcich ‘77 Margaret Campbell-Rivers Xerox Foundation Linda and Richard Hickmann and Thomas Dulcich ’76 Donna Carlson Robin McKnight William Gardner Jr. ’53 Ronald Carlson $49 or Less John Naumes ’03 Douglas Giles ’87 Dunn Carney Jo Gray Lawrence Seyer ’83 Teresa and James Helser ’70 Natalie Cui Joseph Connors Wesley Wilson

N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS 11 Nonprofit Organization U.S. Postage ECONOMICS DEPARTMENT PAID 1285 University of Oregon Eugene OR Eugene OR 97403-1285 Permit No. 63

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Our Academic Genealogies

Ever wonder what economists do for fun? Besides extreme sports, they also search the Internet, researching their academic genealogy! In an academic family tree, a “parent” is a dissertation Wassily Leontief Milton Friedman Gerard Debreu Gary Becker Robert Lucas adviser, “grandparent” is a 1973 Nobel Prize 1976 Nobel Prize 1983 Nobel Prize 1992 Nobel Prize 1995 Nobel Prize dissertation adviser’s adviser, “great-grandparent” is . . . well, you get the point. Portrayed below are some giants in the fields of economics and mathematics, including eight Nobel Prize winners, a cofounder of calculus, and two mathematicians with a probability distribution named after them (can there be a bigger honor?). The Robert Mundell James Heckman Daniel McFadden Ludwig von Mises Gottfried Leibniz small print at the bottom of the page 1999 Nobel Prize 2000 Nobel Prize 2000 Nobel Prize notes members of the department who “descend” from these Key individuals. For pictures of your Leontief: Trudy Cameron (granddaughter), Ron Davies academic parents, see our website: (distant relative); Friedman: Jo Anna Gray (daughter), Mark economics.uoregon.edu/ Thoma (grandson); Debreu: Van Kolpin (grandson); Becker: people/index.htm. Larry Singell (grandson); Lucas: Jo Anna Gray (daughter), Mark Thoma (grandson); Mundell: Nick Magud (grandson); Heckman: Larry Singell (grandson); McFadden: Trudy Cameron (granddaughter); von Mises: Bruce Blonigen (distant relative); Leibniz, Poisson, Bernoulli: Peter Simeon Poisson Jacob Bernoulli Lambert and Anne van den Nouweland (distant relatives).

12 N ewsletter of the U niversity of O regon DEPARTMENT OF ECONOMICS