Yale Department of Economics Fall 2016 Annual Alumni Newsletter Greetings from the Chair — I am delighted to present Fellowship, and Amanda Kowalski received the Annual you with the revived NIHCM Research Award following up her National Science newsletter from the Foundation Career Fellowship from the previous year. Over Department of Economics the last three years a number of faculty have been elected to after a ten-year hiatus. the American Academy of Arts and Sciences; among them A digital version can be Steve Berry, Penny Goldberg, Mark Rosenzweig, and the found on the departmental newest member, Sam Kortum, who was elected into the website, as well as recent 2016 class. Nobel Prize Laureate Bob Shiller was elected news, updates, and events. President of the American Economic Association (AEA) this The department and its year, while Bill Nordhaus can lend advice as a Past President associated research centers, of the AEA after stepping down in 2015. the Cowles Foundation for Our colleague and current Chair of the Department Research in Economics, of History, Naomi Lamoreaux, was awarded the Graduate and the Economic Growth Mentor by the Graduate School, and Steve Berry won the Lex Center continue to thrive and attract world-class students, Hixon ’63 Prize for Teaching Excellence from Yale College. researchers and faculty. Steve was also appointed as the inaugural David Swensen Over the last two years, the department has been Professor of Economics in 2014. The professorship was growing with new young faculty members and postdoctoral established as a result of the Swensen Initiative, which was scholars. This past year Ilse Lindenlaub, who works on organized by a group of alumni and friends to raise funds in search and matching in labor markets, came to us from David Swensen’s honor in recognition of his contributions NYU where she started her academic career after receiving to Yale as the university’s chief investment officer since 1985. her Ph.D. from the European University Institute in David himself was a Ph.D. student and has been teaching Florence. Nicholas Ryan, who studies energy markets for more than thirty years in our Department. Gifts such as and environmental regulation in developing countries, those by a group of generous alum ensure that we continue joined us from MIT after a Prize Postdoctoral Fellowship to support our distinguished and renown faculty for their at Harvard. We were also fortunate to welcome back Ed ground-breaking research and excellent teaching. Vytacil this past year who rejoined the econometrics group Sadly, we faced the loss of a revered teacher and after a few years at NYU. researcher, Herbert Scarf, who passed away in November In the coming year, the economic theory group will be 2015. In a moving memorial service in Battell Chapel, many noticeably strengthened with the arrival of Mira Frick and of his former colleagues and students came together with Ryota Iijima, who both received their Ph.D.s from Harvard his family to pay their respects. A new summer research University. Mira works on choice theory, behavioral program that supports research fellowships and mentoring economics and dynamic games. Ryota has similarly broad for undergraduate students has been established in his research interests in evolutionary and dynamic game honor. The first group of 37 students worked on research theory, decision theory and networks. Yusuke Narita, projects with faculty and graduate mentors, filling the who completed his Ph.D. at MIT in empirical work on department with noise and life during the usually quiet school matching, is joining the labor and public economics summer months. group. These three new colleagues will first enjoy a year as In the spring, we had the pleasure of hosting postdoctoral fellows of the Cowles Foundation before they distinguished alum, former Italian Prime Minister, and formally join the ranks of the faculty. Finally, Zhen Huo Commissioner of the European Community, Mario Monti, will join the macroeconomic group. Zhen completed his who stopped by for a surprise visit. I encourage all our Ph.D. at the University of Minnesota and spent a year as a undergraduate and graduate alumni to visit the department postdoctoral fellow with Tom Sargent at NYU Stern before whenever you are in New Haven. The faculty, staff and I are joining us this summer. always delighted to welcome you back to Hillhouse Avenue! The members of the Department are being continuously Remember to look us up on http://economics.yale.edu, recognized for their outstanding research and teaching follow us on Twitter, like us on Facebook, and send us your performance. During the last year, Dean Karlan received the updates to [email protected]. prestigious John Sim Guggenheim Memorial Fellowship, Dirk Bergemann Bill Nordhaus was awarded the Carnegie Foundation Faculty Highlights 2015-2016 Steven Berry was awarded the William D. Nordhaus was one of 33 Lex Hixon ’63 Prize for Teaching winners of the 2016 Andrew Carnegie Excellence in the Social Sciences last Fellows Program for his project spring. Yale College Dean Jonathan proposal, “Economic modeling of Holloway said of Introductory Micro- irreversible and path-dependent economics, “Students who have processes in climate change.” His taken this course with you have been project will use the example of the amazed at your ability to teach such Greenland Ice Sheet (GrIS) to analyze a large class so effectively.” Berry was optimal climate policy in the face also appointed as the inaugural David of irreversible or partially reversible Swensen Professor of Economics, established in recognition of responses to accumulating greenhouse gases. According to David Swensen ’80 Ph.D, in fall 2014. Nordhaus, the end result of the project will produce a major research publication, open-source software that will be available Dean Karlan was named a 2016 to other scholars and analysts, and an article for a general Guggenheim Fellow from the John audience explaining the significance and interest of these Simon Guggenheim Memorial approaches and their importance for understanding how policy Foundation. During his year- should address irreversible and path-dependent processes. long fellowship, Karlan will focus on research to understand the Robert J. Shiller was honored with relationship between psychosocial the 2016 PROSE Award by the interventions (cognitive behavioral Professional and Scholarly Publishing therapy in Ghana; religious teachings Division of the Association of American through church in the Philippines) and Publishers for his book Phishing for economic interventions (grants, training, coaching and access Phools: The Economics of Manipulation to savings) to increase income sustainably for those in extreme and Deception (co-written with George poverty. Karlan’s research is devoted to microeconomic issues A. Akerlof ), in the Economics category of poverty in developing countries. In an effort to improve (honorable mention). The awards are social policies and financial inclusion for the poor, given annually “to recognize the very his research typically employs experimental methodologies to best in professional and scholarly examine what works, what does not, and why related to publishing by bringing attention to distinguished books, interventions in microfinance, health, behavioral economics journals, and electronic content.” He was also elected President and charitable giving. of the American Economic Association for 2016. Sam Kortum was elected into the 2016 Ebonya Washington was named Photo by Michael Marsland class of the American Academy of Arts the new Director of Undergraduate and Sciences for his leadership and Studies (DUS) succeeding Sam research contribution in the field of Kortum beginning the 2016-17 economics. In announcing this year’s academic year. She is affiliated with fellows, Academy President Jonathan both the Economics and Political F. Fanton said, “As individuals, in Science Departments, and specializes their respective fields and professions, in public finance and political these newly elected members have economy with research interests in extended the limits of what we can the political efficacy of low-income do as a people, a nation, and a world.” He and the other 212 and minority constituents and the members will be inducted at a ceremony on October 8, 2016, in processes through which low-income Americans meet their Cambridge, Massachusetts. Kortum focuses on international financial needs. Washington has been at Yale since 2004 after economics, Industrial organization, and macroeconomics. receiving her Ph.D. from MIT in 2003. Newsletter published annually by the Editing/Writing: Matthew Regan Noel Sardella Yale Department of Economics Thanks to: Qazi Azam Julia Downs Website: http://economics.yale.edu Sue Maher Michael Marsland Online newsletter: http://economics.yale.edu/newsletter Pam O’Donnell OPA Photo Staff Dorothy Ovelar Laura Smith Email: [email protected] Design: Elaine Piraino-Holevoet/PIROET 2 New Junior Faculty Mira Frick is starting her second Ryota Iijima will begin his year as a postdoctoral associate for appointment in the fall 2017 as an Cowles, and will begin her assistant assistant professor after serving one professorship in the fall 2017. year as a postdoctoral associate at She is a microeconomic theorist the Cowles Foundation. He received interested in game theory, decision his B.A. and M.A. in Economics from theory, information economics, and the University of Tokyo, and com- behavioral economics. She received pleted