NEWACADEMICPROGRAM–REQUESTFORM

I. PROGRAMNAME,DESCRIPTIONANDCIPCODE

A. PROPOSEDPROGRAMNAMEANDDEGREE(S)TOBEOFFERED–forPhDprogramsindicatewhetheraterminalMaster’sdegreewillalsobeoffered.MasterofScienceinEconometricsandQuantitativeEconomics

B. CIPCODE–gototheNationalStatisticsforEducationwebsite(http://nces.ed.gov/ipeds/cipcode/browse.aspx?y=55)toselectanappropriateCIPCodeorcontactPamCoonan(621-0950)coonan@email.arizona.eduforassistance.

45.0603EconometricsandQuantitativeEconomics

C. DEPARTMENT/UNITANDCOLLEGE–indicatethemanagingdept/unitandcollegeformulti-interdisciplinaryprogramswithmultipleparticipatingunits/colleges.DepartmentofEconomicsintheEllerCollegeofManagementCampusandLocationOffering–indicatebyhighlightinginyellowthecampus(es)andlocation(s)wherethisprogramwillbeoffered.UASouthCampus UAMain UAOnlineSierraVista Tucson OnlineDouglas UADowntown Mesa DistanceCampusPimaCCEast PhoenixBiomedicalCampusChandlerPinalCounty Phoenix ParadiseValleySantaCruz Yuma UAScienceandTechPark

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II. PURPOSEANDNATUREOFPROGRAM

Thereisincreasedavailabilityofdatainindustryandgovernmentandalongwithittheneedtobeabletomakesenseofthosedata.Well-trainedeconomistsareablebothtoidentifycausalrelationshipsandtoquantifythoseeffects.Theformerrequiresasoundgroundinginmicroeconomictheoryandthelatterfamiliaritywithadvancedeconometricmethods.Thisskillsetisaprerequisiteforinformedcounterfactualanalysisanddecisionsupport.InarecentWallStreetJournalarticleBobTitawrites:Withmoredataavailablethaneverbeforeandmarketsincreasinglyunpredictable,U.S.companies--frommanufacturerstobanksandpharmaceuticalcompanies--areexpandingtheircorporateeconomistsstaffs.Thenumberofprivate-sectoreconomistssurged57%to8,680in2012from5,510in2009,accordingtotheBureauofLaborStatistics.In2012,WellsFargo&Co.hadoneeconomistinitscorporateeconomicsdepartment.Now,ithassix."Alotofcompanieshaveprogrammerswhoareabletoprocessbigdata,"saidTomBeers,executivedirectoroftheNationalAssociationforBusinessEconomicsinWashington,aprofessionalorganizationwithabout2,400members."Buttofindacausalitybetweentwothingsanddrawaconclusionreallytakessomebodywithaneconomicsbackground."TheMSinEconometricsandQuantitativeEconomicspreparesstudentsforhigh-levelpositionsinindustryandgovernment,ortoenteraPh.D.program.Itprovidesthemwithastrongeranalyticandempiricalfocusthanalternativeprofessionaldegrees.Theemphasisisonmicroeconomics,econometrics,andtheirapplications.WeusedourdepartmentlistservetoreachouttoourmajorstoaskforwhomightbeinterestedinpursuingaMaster’sdegreeinEconomicsattheUniversityofArizona,andthatsamedayhadcloseto30affirmativeresponses.ThisisconsistentwithpersistentinquirieswereceivefromundergraduatestudentsineconomicsattheUniversityofArizonaforeconomicstrainingthatgoesbeyondthatfortheBA.Theproposedprogramhasfourfocusareas:econometrics,microeconomictheory(individualdecisionmakingandmarketequilibrium,gametheory,andmarketdesign),empiricalmicroeconomics(theuseofeconometricmethodstounderstandmarkets,industriesandotherinstitutions),andexperimental/behavioraleconomics(theuseoflaboratorymethodsandapproachesfrompsychologytounderstandindividualandinteractivedecisionmaking).Ourproposedcoreconsistsoftwomethodscourses,twoeconometricscoursesandtwoeconomictheorycourses.Ourmethodscoursesincludeoneonmathematicsforeconomistsandoneonprobabilityandstatistics,bothtakeninthefirstterm.Oureconometricscorecourseswillbetakeninthesecondandthirdsemesters,andincludefundamentaltopicsinmoderneconometrics,notablyaverage

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treatmenteffectsmodels,thebootstrap,estimationofdiscretechoicemodels,andquantileregressionmethods.Themicroeconomictheorycore,alsotakeninthesecondandthirdsemesters,providesafoundationinindividualchoicetheory,marketequilibrium,gametheoryandinformationeconomics.Inadditiontothesixcoursesinthecore,studentswilltakefourelectivecourses,twoduringthesecondsemesterandanothertwoduringthethirdsemester.Theelectivesthatweproposetoofferare:IndustrialOrganization,EconomicsofHealthcare,LaborEconomics,EnergyEconomics,MarketDesign,ExperimentalEconomics,BehavioralEconomics,andFinancialEconometrics.WewillalsoworkwithAREC,MISandotherdepartmentstohavestudentstakeelectivecoursesfromthesedepartmentsthatcomplementourofferings,suchascoursesonresourceeconomicsanddataminingmethods.

Whatsetsourprogramapartfromothersisthemicroeconomicsfocus,whichisdrivenbythestrengthsandresearchorientationofthedepartment.Microeconomicsisconcernedwithindividualandfirmdecisionmaking.Itcombinesformalmodelinganddataanalysistoolstohelpunderstandtheindividual,firmlevelandsocialconsequencesofdecisionmakingininteractiveenvironments.Themicroeconomicsfocusofourprogramreflectsalong-termcommitmentoftheEconomicsdepartmenttostrengthsingametheory(thetheoryofinteractivedecisionmaking),econometrics(whichprovidesthedataanalysistools),appliedmicroeconomics(whichtakeseconomictheoryandeconometricmethodstofielddata)andexperimentaleconomics(whichstudiesdatathataregeneratedundercontrolledconditionsinthelaboratory).Thedepartmenthassubstantialexpertiseinindustrialorganization,laboreconomics,economichistoryandenvironmentaleconomics,allofwhicharedataintensive.Thedepartmentisoneofthepremierinstitutionsintheworldinexperimentaleconomics,beingthehomeoftheEconomicScienceLaboratory,whichwasfoundedbytheNobelLaureateVernonSmith.Anotherdistinguishingfeatureofourprogramisthatitislocatedinabusinessschool.Thevastmajorityofeconomicsdepartmentsbelongtoliberalartsorsocialsciencecolleges.Theabilitytocoordinatewithothermaster’sprogramsinthebusinessschoolcreatesadistinctsetofsynergiesbetweenourprogramandotherprofessionaldegreeprogramsinthebusinesscollege.Itgivesourstudentsaccesstoastrongerbusinessorientation,letsstudentsfromfinance,marketing,MIS,accounting,andmanagementstrengthentheiranalyticalandempiricalskills,andcreatesdualdegreeoptions.TheEconomicsdepartmentattheUniversityofArizonaisoneoftheleadingresearchdepartmentsintheU.S.,rankednumber42overallandnumber21amongpublicuniversities(U.S.NewsandWorldReport).Weinvestigatedthetop27Economicsdepartmentsatpublicuniversitiesandfound9withterminalMA/MSdegrees,4ofwhichareofferedbyourpeergroup(asdefinedbyourmostrecentAcademicProgramReview).Tomakemoredetailedcomparisons,wecollectedinformationontwopeerdepartments:WepickedtheUniversityofTexas-AustinandtheUniversityofWisconsin-Madison.Bothoftheseprogramswerestartedrecently,inresponsetoanincreasingdemandformoreadvancedtrainingineconomics.Wisconsin-Madison

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describestheirprogramas“highlysuccessful”(https://www.econ.wisc.edu/Econ_Newsletter_SPR_2017.pdf).Theyarerankednumber7(Texas-Austin)andnumber14(Wisconsin-Madison)outof50economicsmaster’sprogramsrankedbyCollegeChoice:http://www.collegechoice.net/rankings/best-masters-degree-programs-in-economics/#Seetheappendixforthecompleteranking.Likeours,theseprogramsaimforrigorousanalyticalandquantitativetraining,withastrongfocusoneconometrics.Theydifferfromourprograminthattheyoffercoursesinmacroeconomics,whichwedonot,anddonothaveeitheranexperimentalormarketdesigncomponent.Ourfocusonexperimentaleconomics,behavioraleconomicsandmarketdesignreflectsthestrengthsofourdepartmentandappealstoastudentpopulationinterestedinacquiringskillsrelevantinabroadrangeofmodernindustries,includingenergy,socialmedia,andinternet-basedretailing.Afurtherdifferenceisthat,likemosteconomicsdepartments,theonesatWisconsin-MadisonandTexas-Austinarenotlocatedinbusinessschools.Webelievethatthereisanunderservedmarketnicheformaster’sprogramsineconomicsthatintersectwithandhaveaccesstoprofessionalprogramsinabusinessschool,likeours.Finally,wehavecommunicatedwithEconomicsprofessorsatWisconsin-MadisonandTexas-Austinwhohavetoldusthattheyarefacedwithsubstantialexcessdemandfortheseprograms.MoredetailsonthesimilaritieswithanddifferencesbetweentheproposedMSprogramandthemaster’sprogramsoftheUniversityofTexas-AustinandtheUniversityofWisconsinMadisoncanbefoundinthedetailedcomparisonchartintheappendix.

III. PROGRAMREQUIREMENTSTheproposedMSinEconometricsandQuantitativeEconomicsisa30creditprogramthathasananalyticalandempiricalfocusanddrawsonthecurrentstrengthsoftheEconomicsdepartmentinmicroeconomics,empiricalmethodsandexperimental/behavioraleconomics.Thetypicalstudentisexpectedtofinishin18months,withanewcohortstartingeachfallsemester.Theprogramdoesnotrequireathesisorinternship.Theprogramhasfourfocusareas:econometrics,microeconomictheory(individualdecisionmakingandmarketequilibrium,gametheory,andmarketdesign),empiricalmicroeconomics(theuseofeconometricmethodstounderstandmarkets,industriesandotherinstitutions),andexperimental/behavioraleconomics(theuseoflaboratorymethodsandapproachesfrompsychologytounderstandindividualandinteractivedecisionmaking).Ourproposedcoreconsistsoftwomethodscourses,twoeconometricscoursesandtwoeconomictheorycourses.Ourmethodscoursesinclude

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oneonmathematicsforeconomistsandoneonprobabilityandstatistics,bothtakeninthefirstterm.Oureconometricscorecourseswillbetakeninthesecondandthirdsemesters,andincludefundamentaltopicsinmoderneconometrics,notablyaveragetreatmenteffectsmodels,thebootstrap,estimationofdiscretechoicemodelsandquantileregressionmethods.Themicroeconomictheorycore,alsotakeninthesecondandthirdsemesters,providesafoundationinindividualchoicetheory,marketequilibrium,gametheoryandinformationeconomics.Inadditiontothesixcoursesinthecore,studentswilltakefourelectivecourses,twoduringthesecondsemesterandanothertwoduringthethirdsemester.Theelectivesthatweproposetoofferare:IndustrialOrganization,EconomicsofHealthcare,LaborEconomics,EnergyEconomics,MarketDesign,ExperimentalEconomics,BehavioralEconomics,andFinancialEconometrics.WewillalsoworkwithAREC,MISandotherdepartmentstohavestudentstakeelectivecoursesfromthesedepartmentsthatcomplementourofferings,suchascoursesonresourceeconomicsanddataminingmethods.Thecomparisonchartintheappendixprovidesmoredetailonsimilaritiesanddifferenceswiththemaster’sprogramsattheUniversityofTexas–AustinandtheUniversityofWisconsin–Madison.MSinEconometricsandQuantitativeEconomicsCourses:

UAEconomicsCourseName CourseNumber CoreorElectiveMathematicalEconomics ECON519 Core(firstsemester)TheoryofQuantitativeMethodsinEconomics ECON520 Core(firstsemester)MicroeconomicTheoryI ECON501A Core(firstsemester)MicroeconomicTheoryII ECON501C Core(secondsemester)EconometricsI ECON522A Core(secondsmester)EconometricsII ECON522B Core(thirdsemester)LaborEconomics ECON572 Elective(secondsemester)ExperimentalEconomics ECON506 Elective(secondsemester)EconomicsofHealthCare ECON527 Elective(secondsemester)BehavioralEconomics ECON536 Elective(secondsemester)IndustrialOrganization ECON560 Elective(thirdsemester)FinancialEconometrics ECON522C Elective(thirdsemester)EnergyEconomics ECON573 Elective(thirdsemester)MarketDesign ECON501D Elective(thirdsemester)

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A. CURRENTCOURSESANDEXISTINGPROGRAMS

WecurrentlyofferthefollowingcoursesinourPhD/MAprogram:• ECON519.MathematicalEconomics• ECON520.TheoryofQuantitativeMethodsinEconomics• ECON522A.EconometricsI• ECON522B.EconometricsII• ECON501A.MicroeconomicTheoryI• ECON501C.MicroeconomicTheoryII• ECON527.EconomicsofHealthCare

B. SPECIALCONDITIONSFORADMISSIONTO/DECLARATIONOFTHISMAJORAdmissioncriteriafortheMSinEconometricsandQuantitativeEconomicsprogramarenotedbelow.

§ AGPAof3.0orhigher§ AnundergraduatedegreeinEconomicsorinarelatedfield,with

substantialcourseworkinEconomics§ Asolidfoundationinmathematicsincludingaminimumoftwo

semestersofCalculuswithgradesofBorbetter§ KnowledgeofStatisticsincludingcourseworkinStatistics§ GRE(RecommendedMinimumGREQuantitativescore:80thpercentile

orhigher)§ AnMSinEconometricsandQuantitativeEconomicsgraduateapplication§ BeacceptedintotheprogramasperGraduateCollege’sapproval§ Complete30credithours

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C. NEWCOURSESNEEDED

Therewillbesixnewcourses,allofwhichareelectives.

ECON506.ExperimentalEconomics–3unitsThiscourseemphasizesapplicationsofexperimentaleconomicstobusinessandpolicy.Thefirstpartofthecoursedescribesresearchmethodsandprincipalfindingsinexperimentaleconomics.Thesecondpartcoversselectedapplications.Inthecourse,studentswillbeputintogroupswiththeassignmenttodesignandconductanoriginalexperiment.Topicscoveredare:Introductionandexamplesofexperiments;Methodology;Individualdecisionmaking;Markets;GamesandstrategicInteraction;SocialPreferences;Auctiondesign;Predictionmarkets;Electricityandgasmarkets;Fieldexperiments;Randomizedcontroltrials;Charitablegiving;and,Studentprojects.ECON501D.MarketDesign–3unitsMarketand,morebroadly,institutionaldesign,insteadoftakingallocationproceduresasgivenaimstoimprovetheirperformance.Someoftheprominentexamplesarespectrumauctions,electricitymarkets,schoolchoice,kidneyexchange,positionauctionsforonlineadvertisements,matchingofmedicalresidentswithhospitals,congestionpricing,electronicmarketsande-commerce.Theaimofthecourseistobuildonthegametheoretictoolsfromthepriorsemestertoexploresomeoftheabovetopicsingreaterdetailandwithafocusonrealworldapplicationsandonempiricalaswellasexperimentaldata.Animportantaspectofthecourseistogainanappreciationofboththeuseandthelimitationsofgame-theoretictoolsindesigningactualmarkets.

ECON573.EnergyEconomics–3unitsStudentswillexploretheroleofenergyintheeconomyandexaminetheworkingsofmajortypesofenergymarkets–coal,oil,naturalgas,electricity,renewables–usingacombinationoftheory,empiricalmethods,andpolicyanalysis.Thecoursewillcoverimportantinstitutionsandregulationsthatshapebehaviorinthesemarkets.Studentswillapplytoolsfrommicroeconomicsandeconometricstoanalyzearangeofenergymarketissuessuchas,demandestimation,forecasting,marketpowerassessment,impactofnewtechnologies,andtheimpactofregulatorypolicies.Energyproductionandconsumptionareattheheartofmanyenvironmentalandclimatepolicydebates.Studentswillanalyzetheimpactofpoliciessuchascapandtradeprograms,cleanenergystandards,andlow-carbonfuelstandards.

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ECON581.LaborEconomics–3unitsThiscourseapplieseconomictheoryandeconometricstotheanalysisoflabormarkets.Typicaltopicsincludelaborsupply,labordemand,marketequilibriumforemploymentandwages,investmentinhumancapital(suchaseducationandon-the-jobtraining),andthebehaviorofthelabormarketoverthebusinesscycle.Theoryandevidencewillbecombinedintheanalysisofeachtopic,withfrequentreferencetopolicyapplications.ECON536.BehavioralEconomics–3unitsThegoalistointroducestudentstobehavioraleconomics,includingrelevantmethods,inparticulargametheory,experiments,andnon-parametricstatistics.Economistsoftenuseadvancedmathematicalmethods,butrelyonrelativelysimpleassumptionsabouthumannature.Researchinneighboringsocialsciencesoftenuseslesssophisticatedanalyticalmethodswhileentertainingaricherdescriptionofhumanbehavior.Behavioraleconomicscombinesthesestrengths,incorporatingpsychologicalinsightsintoeconomicanalysiswithcontinueduseofformalanalyticaltools.Labexperimentsprovideameanstogaugetheempiricalrelevanceoftheresultingmodels.Thecoursewillincludeacomponentwherestudentsformulatetheirownresearchhypothesesbasedonbehavioraltheory,andthendesignlabexperimentsthatareadequatefortestingthosehypotheses.ECON522D.FinancialEconometrics–3unitsThiscourseintroducesmodelsforfinancialtimeseriesandthenecessarytechniquestoestimateandtestthesemodels.Inparticular,severalideasinfinancialeconometricswillbediscussedatlengthandusedasbuildingblocks(includingtheEfficientMarketHypothesis,Risk-NeutralValuation,ARCH,andGARCH)canbetested,howtheARCHmodelcanbeestimatedandtestedandhowrealizedvolatilitymodelscanbeusedtopredictvolatility.Thecoursealsocoversriskmanagementandoptionvaluation.

D. REQUIREMENTSFORACCREDITATION

Onceapproved,theprogramwillfallundertheumbrellaofaccreditedofferingsintheEllerCollegeofBusiness.

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IV. STUDENTLEARNINGOUTCOMESANDASSESSMENT

A. STUDENTOUTCOMES

Studentlearningoutcomesfortheprogramare:1. Studentswillbeabletoanalyzetheusefulnessofmoderneconometric

toolswhenappliedtorealproblems,includingunderwhatconditionsmethodscanbecrediblyusedforinferringcausalityandhowtoaccountforalackofindependenceacrossobservations;

2. Studentswillbeabletoperformeconometricanalysesonareaswithreal-worldinterest,suchastreatmenteffectsmodels,bigdataregressions,limiteddependentvariablesmodels,andinstrumentalvariablesmodels;

3. Studentswillbeabletoapplyeconomictheoryconceptssuchasinformationeconomics,gametheory,andexperimentaleconomicstoreal-worldsettings;

4. Studentswillbeabletoapplylaboratoryandfieldexperimentsmethodstoappliedsettings;

5. Studentswillbeabletoapplyinsightsfromtheappliedsubfieldsofinterest,includingindustrialorganization,healthcareeconomics,andenvironmentaleconomicstoreal-worldsettings;

6. Studentswillbeabletointegrateknowledgefromappliedsubfieldsofinterestandfromcorecoursesforcareersuccess.

B. STUDENTASSESSMENT

Wewillutilizeavarietyofassessmentactivitiestomeasurestudentlearningoutcomes,includingthefollowing:1. Assessmentforstudentsduringtheprogram:

a. Uponstartingtheprogram,wewillhaveanentryassessmenttotestlearningoutcomes1-6atthispoint.Theassessmentwillbepresentedintheformatofanin-classexamtoincentivizestudentstoshowtheirbestwork;

b. Upongraduation,wewillhaveanexitassessmenttotestvalueaddedtostudentoutcomes1-6.Thisassessmentwillsimilarlybepresentedintheformatofanin-classexamtoincentivizestudentstoshowtheirbestwork;

c. Wewillassessstudents’performanceontheassessments1aand1bandincourseswithrubricsthatincorporatetherelevantelementsoflearningoutcomes1-6;

d. Upongraduation,wewillsurveystudentsregardingtheir

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beliefsregardinghowsuccessfultheywereinmeetingthelearningoutcomesoftheprogramandthelikelycontributionoftheseoutcomestocareersuccess;

e. Wewillsurveyrecruiterswhointerviewstudentsontheirbeliefsregardinghowsuccessfulthestudentswereinmeetingthelearningoutcomesoftheprogramandthelikelycontributionoftheseoutcomestocareersuccess;

f. Thesurveyquestionsfor1dand1ewillbebasedonrubricsthatincorporatelearningoutcomes1-7;

g. Wewillassessplacementdata.Wewilllinkplacementatfirmstothelearningoutcomes(orequivalently,skills)demandedbythosefirms,whichwillallowustoviewplacementatfirmsasevidencethatthoselearningoutcomeshavebeenmet.

2. Assessmentforstudents3yearsafterdegreecompletion:a. Wewillsurveystudentsregardingtheirbeliefsregardingtheskills

andexperiencesthattheylearnedintheprogramandtheircontributiontocareersuccess;

b. Wewillsurveyemployerstodeterminewhethertheyaresatisfiedwiththeskillsfromthealumnioftheprogramandwhethertheyhavesuggestionsfordifferentskills;

c. Thesurveyquestionswillbebasedonrubricsthatincorporatelearningoutcomes1-7.

3. Assessmentactivitiesbycourse:

LEARNINGOUTCOME COURSE MEASUREMENT EXPECTEDOUTCOME

IDEALOUTCOME

1.Analyzeusefulnessofmoderneconometrictoolswhenappliedtorealproblems.

Econ520,522A,522B,522C

Takeanappliedeconometricstudyfromtheliteratureandwriteareportthatdiscussesitsresultsandtheir

limitations.

80%writeareportthat

appropriatelyanalyzes

usefulnessofmodern

econometrictoolsinthiscontext.

100%writeareportthat

appropriatelyanalyzes

usefulnessofmodern

econometrictoolsinthiscontext.

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2.Performeconometricanalysesonareaswithreal-worldinterest.

Econ522C,527,560,572,

573

Takearealdataset,useeconometrictechniquestoanalyzeitand

reporttheresults.

80%appropriately

performeconometric

analysesonthisdataset.

100%appropriately

performeconometric

analysesonthisdataset.

3.Applyeconomictheoryconceptstoreal-worldsettings.

Econ501A,

501C,506,536

Midtermandfinalexamsthattest

understandingandtheabilitytoapplyeconomictheory

concepts.

80%successfullyapplyeconomictheorytoreal-worldsettings.

100%successfully

applyeconomictheorytoreal-worldsettings..

4.Applylaboratoryandfieldexperimentmethodstoappliedsettings.

Econ501D,

506,536

Createanexperimental

design,runapilotexperiment,andwriteareport

summarizingtheexperimental

results

80%successfullyapplyfieldexperimentmethodsto

appliedsettings.

100%successfullyapplyfieldexperimentmethodsto

appliedsettings.

5.Applyinsightsfromappliedsubfieldstoreal-worldsettings.

Econ527,560,572,

573

Midtermandfinalexamsthattestthe

specificcompetenciesin

theappliedsubfields.

80%successfullyapplyinsightsfromapplied

subfieldstoreal-worldsettings.

100%successfullyapplyinsightsfromapplied

subfieldstoreal-worldsettings.

6.Integrateknowledgefromappliedsubfieldsandcorecoursesforcareersuccess.

Econ501D,

506,522C,527,536,560,572,573l

Aresearchpaperthatwillbegradedinaccordancewiththeseobjectives.

80%successfullyintegrate

knowledgeintheirresearch

paper.

100%successfullyintegrate

knowledgeintheirresearch

paper.

TheMSinEconometricsandQuantitativeEconometricscommitteewillmeetregularlytoreviewtheresultsofassessmentandmodifyassessmentactivitiestoensuretheyaremeetingtheneedsofthestudentsandemployers.Attheendofeachacademicyear,thecommitteewillwriteareportonhowthestudentsfaredinthevariousassessmentoutcomesanddeterminewhetherenoughstudentsmettheexpectedstandard.Inlatesummer,atthebeginningofthefollowingacademicyear,thefacultywillconvenetoreviewthe

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reportedresultsfromtheassessmentsexerciseanddeterminehowtoupdatethecurriculumand/orcoursecontent.

V. STATE'SNEEDFORTHEPROGRAM

A. HOWDOESTHISPROGRAMFULFILLTHENEEDSOFTHESTATEOFARIZONAANDTHEREGION?--INCLUDEANEXPLANATIONOFTHEPROCESSORSOURCEFORARRIVINGATALLNUMBERSUSEDINTHISSECTION

1. Istheresufficientstudentdemandfortheprogram?

• Weusedourdepartmentlistservtoreachouttoourmajorstoask

forwhomightbeinterestedinpursuingaMaster’sdegreeinEconomicsattheUniversityofArizona,andthatsamedayhadcloseto30affirmativeresponses.ThisisconsistentwithpersistentinquirieswereceivefromundergraduatestudentsineconomicsattheUniversityofArizonaforeconomicstrainingthatgoesbeyondthatfortheBA.

• ThereisanationwidetrendtostartnewMaster'sprogramsineconomics.RecentlystartednewMaster’sprogramsineconomicsincludethoseattheUniversityofWisconsin-Madison,theUniversityofTexas-AustinandtheUniversityofCalifornia-LosAngeles.

• TheincreasedneedforMaster’slevelanalyticalskillsdescribed

aboveistrue,inparticular,forArizona.ArizonaisoneofthefastestgrowingstatesintheU.S.andthegrowthhasattractedmorebusinessactivityandmoreopportunitiesforanalysisofsocioeconomicdataforbusinessandgovernment.CompaniessuchasDiscoverFinancialServicesandJ.P.MorganChase,whichhavelargeofficesinArizona,haveexpressedtheneedtousformorepeoplewiththeseskills.

• Theincreaseinmaster’sprogramsthatwehavedocumentedhas

occurredinEconomicsdepartmentseveninland-grantschoolsliketheUniversityofArizona,whichgenerallyhaveAgriculturalEconomicsdepartments.

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TheclosestexampletooursituationistheoneatWisconsin-Madison.TheireconomicsdepartmentaddedageneralmastersineconomicsinthesametimeframeastheirAgriculturalEconomicsprogramaddedaspecializedmastersinresourceandenergydemandanalysis.SimilartothesituationatWisconsin,weseektoaddabroadmasterswhiletheARECdepartmentoffersamorespecificAgricultureandResourceEconomicsmasterswithsubplans.Wisconsin’sAgriculturalEconomicsdepartmentrightlyfocusedonaspecializedmasterseventhoughtheyalsoawardaPhDinAgriculturalEconomics.IncontrastwithWisconsin,Ph.D.studentsattheUniversityofArizonawhospecializeinAgricultureandResourceEconomicsobtaintheirPhDfromtheEconomicsDepartment.TheytaketheentireEconomicsPhDcorecoursesandthentakeamixtureofEconomicsPhD-levelelectivesandsomeARECmasters/PHDcourses.Sevenoutof114ArizonaEconomicsPhD.GraduateshadanARECfacultymemberontheirdissertationcommitteeoverthelast17years.GiventhemuchbroaderspectrumofeconomicfieldsofferedbyEconomicsthanbyARECatArizonaandtheextensiveexperienceofArizonaEconomicsfacultyinteachingadvancedgraduatestudents,itseemsreasonabletofollowtheWisconsinexampleofhavingaspecializedmastersintheARECdepartmentandaseparategeneralmastersinTheEconomicsDepartment.

2. Whatistheanticipatedstudentenrollmentforthisprogram?

5-YEARPROJECTEDANNUALENROLLMENT 1stYear 2ndYear 3rdYear 4thYear 5thYear

NumberofMajors

25 30 35 45 55

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3. Whatisthelocal,regionalandnationalneedforthisprogram?Manyeconomicsdepartments,bothdomesticandabroad,haverecentlystartedMaster'sprogramsineconomics.DukeUniversityreceivesover1,000applicationsfortheirMaster'sprogramperyear.Theyadmit75studentsandhaveanenteringclassofbetween40and45students.TheirprogramisaimedatplacementinPhDprogramsandtheprivatesector.TheUniversityofWisconsin-Madisoncurrentlyhasmorethan60studentsenrolled.Theyareaimingatthehighendofthemarket,withastrongquantitativefocusandattractalargenumberofstudentsfromChina.UCLAisstartinganMAprogramwithanappliedfocusandadmits50studentspercohort.AttheUniversityofTexas-Austinclasssizesduringthefirstthreeyearshavebeen36,42and45.AboutonethirdoftheirgraduatesreceivefundedofferstoenterPhDprograms.Astestamenttothestrengthofourfaculty,ourPhDplacementsrivaltheplacementsofthesedepartments.Regardingemploymentprospectsandsalaries,theBureauofLaborStatisticsstatesthat“employmentofeconomistsisprojectedtogrow6percentfrom2014to2024”andthat“prospectsshouldbebestforthosewithamaster’sdegreeorPh.D.[with]stronganalyticalskills.”http://www.bls.gov/ooh/life-physical-and-social-science/economists.htmThissuggeststhatthereisasubstantialdemandforgraduatesfromMaster'sprogramswiththetypeofstronganalyticalfocusthatweareproposing.AccordingtoU.S.News&WorldReport,http://www.usnews.com/education/online-education/economics-masters-degreethemedianearlycareersalaryofaneconomistwithaMaster'sdegreeis$62,000,andthemidcareersalaryisabout$114,000.

4. Beginningwiththefirstyearinwhichdegreeswillbeawarded,whatistheanticipatednumberofdegreesthatwillbeawardedeachyearforthefirstfiveyears?(Pleaseutilizethefollowingtabularformat).

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PROJECTEDDEGREESAWARDEDANNUALLY

1stYear 2ndYear 3rdYear 4thYear 5thYearNumberofDegrees

25 30 35 45 55

IV. APPROPRIATENESSFORTHEUNIVERSITY

The new program is designed to prepare students for industry and government andprovidethemwithastrongeranalyticandempiricalfocusthanalternativeprofessionaldegrees. These analytical and empirical skills are in high demand in the modernworkplace.TheprogramthushelpsimplementthestatedgoaloftheUAStrategicPlanto“emphasizegraduateworkforcedevelopmentinselectedmaster'sprograms.”For exceptionally talented students the program will provide a bridge into PhDprograms. Together with the STEM designation of the program, this will make theprogram attractive to international students and meet the UA Strategic Plan goal to“expandglobalconnections."Basedoninformationabouteconomicsmaster'sdegreesrecentlystartedelsewherethereisstrongdemandfromthisdemographic.Akeybenefitofstartingamaster'sprogramineconomicsisthattheaddedrevenuecanbeusedtostrengthenthedepartmentbyaddingresearchfacultyandimprovestabilityin the core of the doctoral program (economic theory and econometrics) and in theareas of strength (labor economics, economic history, industrial organization,environmental economics, health economics, experimental economics and behavioraleconomics).ThisadvancestheUAStrategicPlanobjectivesto“stabilizeandincreasethenumberofresearch-activefacultyinkeyfocusareas”and“attract,educate,andengagefirst-ratedoctoralstudents.”Currentstaffinglevels(wehave19tenuretrackfacultyandare in theprocessofhiring threemore) are such that each time there is adeparturethereisanexistentialthreattoacoremissionofthedepartment.Hiringfiveadditionalfaculty to staff theMaster's program, after bringing thebasenumberof tenure trackfacultyto22,wouldhelpalleviatethatproblem.It is a strategic goal of the Eller College of Management to add 500 new Master'sstudents over the next few years. Once fully established, a Master of Science inEconometricsandQuantitativeEconomicswouldcontribute55newstudentseachyear;since it isathree-semesterprogram, inthesteadystatetherewillbe110studentsoncampuseachfallsemester.AMaster'sprogramineconomicswillstrengthengraduateeducation.Intheeconomics

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department itself,havingadditional researchfacultymeansabroaderrangeof facultyexpertise,courseofferingsandtopicsforPhDstudentsonwhichtowork.Theplannedelective courses by design will have capacity to admit students from other graduateprogramsintheEllercollegeandthuswilladdvaluetothoseprograms.Specifically,thestrongempiricalfocusandsolideconometricstrainingcreatessynergieswithotherEllerprograms and significantly strengthens the department's analytics capabilities, in linewiththeUAStrategicPlandirectiveto“createaworld-classinformaticsinfrastructure"and to“revolutionize thecapability toextractuseful information frommassively largesets of data." At the undergraduate level, having more research faculty will make itpossible to offer a richer portfolio of courses and having aMaster's programwill beattractivetosomeUAgraduateswhoseekadvancedtrainingbeyondaBAdegree.In sum, there is substantial excessdemand for economics instruction, knowledgeandresearchinArizona,intheU.S.andforstudentsglobally.AddingtheMaster’sprogramleadingtotheMasterofScienceinEconometricsandQuantitativeEconomicswillhelptheuniversitymeetthisdemandforeconomicsinstruction,knowledge,andresearch.

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V. EXISTINGPROGRAMSWITHINTHEARIZONAUNIVERSITYSYSTEMA. ArizonaUniversitySystem

ProgramName

DegreeType

NumberofStudentsEnrolled

LOCATION

University&Site

PROGRAMACCREDITATION?

YES/NO

1 M.S. in Agricultural & Resource Economics Subplan 1: Applied Economics and Policy Analysis

MS 5 UniversityofArizona-Main

Yes

2 M.S. in Agricultural & Resource Economics Subplan 2: Applied Econometrics and Data Analytics

MS 7 UniversityofArizona-Main

Yes

3 M.S. in Agricultural & Resource Economics Undeclared for either subplan

MS 6 UniversityofArizona-Main

Yes

The CIP code for the Master’s in Agricultural Economics is 01.0103, whereas ours is45.0603.NooneintheStateofArizonaoffersaMaster’sdegreeineconomicswiththeCIPcode45.0603.

KeyFeaturesoftheMaster’sinEconometricsandQuantitativeEconomics:

• TheproposedprograminEconometricsandQuantitativeEconomicsteachesanalyticalandquantitativemethodsthataregroundedinthecoreoftheeconomicdisciplineandareapplicableacrossabroad rangeofpositions inbusiness,policy,andotherappliedsettings.

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• A distinguishing feature of our program is an emphasis on providing tools to identifycausal relationships and quantify those effects. These tools include advancedeconometric techniques as well as frontier training in decision theory, game theory,behavioral/experimentaleconomics,andappliedmicroeconomics.

• The focusof theMS in Econometrics andQuantitative Economics ondecision theory,game theory, behavioral/experimental economics, and applied microeconomics is anintegralpartofthecorestrengthandreputationoftheeconomicsdepartment.Thecorecoursearedesignedand taughtwith this focus inmind.Thismakes it imperative thatthe program is taught in the economics discipline with instructors who are at theresearch frontier in econometrics, game theory, behavioral/experimental economicsandappliedmicroeconomics,andentirelyintheeconomicsdepartment.

• The core of the program complements our highly successful Ph.D. program. Bothprogramsemphasizefrontierresearchmethods.WhereasourPh.D.programhasasitsgoal to train students to be creators of new frontier methods, the goal of our M.S.programistotrainstudentstoapplyfrontiermethodsinappliedsettings.

• Our program will synthesize knowledge between theory, econometrics and appliedfields.Thisisaparticularstrengththatwecanachievebecauseourdepartmentisverystrong on this dimension. For instance, it is crucial for students to have a theoreticalunderstandingofstatisticalandeconometricsconceptssuchasendogenousregressorsand non-independent observations and econometric solutions for these problems(instrumentalvariablesandclustering,respectively).But, it isevenmoreimportantforthemtohaveaperspectiveonwhenandhowthesesolutionscanbecrediblyappliedintherealworldandwhentheycannot.Oureconometricsandappliedeconomicsfacultyspecialize intheintersectionofcomplexeconometricconceptsandtheapplicationstotherealworld,havingperformedresearchandadvisedmanygraduatestudentsatthisintersection.Similarly,our faculty inmicroeconomictheory,behavioraleconomicsandexperimentaleconomicscombinetheuseofadvancedtheoreticalconceptsfromgametheoryandinformationeconomics(BayesianNashequilibrium,incentivecompatibility,the revelation principle) with experimental testing to evaluate and design real worldallocationmechanisms(auctions,tradingplatforms,matchingprocedures).Ourmaster’sprogramwillallowstudentstodevelopthissynthesisaswell.

• TheEconomicsdepartmentincludesrenownedresearchfacultywhoarewellpositioned

to implement a research-intensive program in Econometrics and QuantitativeEconomics. For instance, Andreas Blume an internationally known scholar in gametheory and information economics, which provide the theoretical underpinning formuchofthecausal interpretationofeconomicdata;hehaspublishedinEconometricaandtheAmericanEconomicReview,servesontheeditorialboardofGames&EconomicBehavior, and has received multiple National Science Foundation grants. MartinDufwenbergisaleadingscholarinBehavioralEconomics,whichcombinesinsightsfrompsychologywithadvancedeconomictheorytounderstanddatafromthefieldandfromthe laboratory; hehas published in theAmerican EconomicReview andEconometricaandhasservedonseveraleditorialboardsincludingGames&EconomicBehavior.PriceFishbackisapreeminentEconomicHistorian,havingperformedsomeofthepioneering

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workontheeconomicsoftheNewDeal.Hehasexpertiseinconstructinglargedatasetsand analyzing them using advanced econometric methods and has received nineNational Science Foundation grants. Gautam Gowrisankaran is a leading expert onindustrialorganizationandappliedeconometrics,haspublishedpapersinandisontheeditorialboardsoftheAmericanEconomicReviewandtheRANDJournalofEconomics,andhasreceivedmultipleresearchgrantsfromtheNationalScienceFoundationandtheAgency for Healthcare Quality and Research. Charles Noussair is a prominentexperimental economist, and thus works with data generated under controlledconditions to answer questions about individual behavior, strategic behavior, andmarketdesign;hecurrentlyservesastheCo-EditorinChiefatExperimentalEconomics,the leading journal specializing in experimental economics. TiemenWoutersen is anexpert in econometrics, in particular, in the estimation and testing of semiparametricmodels,nonparametricmodels,modelsthatonlyyieldbounds,andmodelswithmanyinstruments.Prof.Woutersen’sworkhasbeenpublishedinleadingeconomicsjournalsincludingEconometrica,Quantitative Economics,and the Journal of Econometrics andhehasservedasaconsultantineconometricsattheWorldBank.

• Ourmaster’s in science ineconometricsandquantitativeeconomicswillbea flagshipprogramofourdepartment.Weexpecttohavethepreponderanceofcoursestaughtbytenured or tenure-track faculty who are experts in their field. Indeed, we have amemorandumofunderstandingtohire5extratenuredortenure-trackfacultyinordertostaffthisprogram.Whilethereissubstantialdemandforthisprogram,weexpecttodraw students from all over the United States and internationally, and as such,recognizethatthisprogrammustbeattheforefrontofinstruction.

RelationtoARECMaster’sofScience:

• TheprogramofferedbyAREC ismore specialized thanours. It leads to aMaster’s ofScience degree with a major in Agricultural and Resource Economics. It emphasizesnaturalresources, internationalbusiness,andagribusinessandprovidestraininginthemethodsusedinappliedagriculturalandresourceeconomics.

• AREChasrecentlyaddedsubplanstotheirMaster’sofSciencedegreewithamajor inAgriculturalandResourceEconomicsthatlookmoreliketraditionaleconomicstraining.TheEconomicsdepartmentagreedtotheadditionofthosesubplansgiventheexplicitstipulationthatdoingsodoes“notprecludetheDepartmentofEconomicsfromofferingits own Master's degree in Economics and/or Econometrics at some future date.”(memo from Gary Thompson, Chair of AREC, to Janet Sturman, Associate Dean,GraduateCollegeandPamelaCoonan,SeniorDirector,Academic/CurricularAffairsonJune26,2015).

• AREC’s program is different in several ways. First, while the content from theirmicroeconomics core is largely covered by our microeconomics core, theirmicroeconomics core lacksmany of themodern techniques in theoretical economics,which we cover. Notably, we propose to cover game theory, auction theory andmechanismdesign,whicharehavebecomecrucialtothestudyofeconomictheoryoverthe past 25 years, andwhich are not in their core.We also propose to offer elective

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coursesinthetheoreticalsubjectsofExperimentalEconomicsandMarketDesign,whichrely on background knowledge from our core courses above and which do not haveanalogsintheirprogram.Thesecoursesareveryusefulinavarietyofrealworldsettingswhereweanticipatethatourstudentswillplace.Second,whilethereisoverlapinthetopicsbetweenoureconometricscoreandtheirs, the focushere isalsodifferent.Wepropose to cover a set of modern econometric methods that integrate with appliedmicroeconomics, notably average treatment effects models, linear and nonlinearmodels with endogeneity, the bootstrap, machine learning, estimation of games,estimation of discrete choice models and quantile regression methods. While ARECcoverssomeofthesetopics,suchasmachinelearning(whichistaughtbytheSchoolofInformation on their behalf), the central difference is that our econometrics core istaught to integratewithappliedeconomicsknowledge,usingdataand inference fromtherealworldasthebasis.Thiswillallowourmaster’sstudentstounderstandhowandwhen tooptimallyuse theeconometric techniques that theydevelop,whichwill helpthemintheirlonger-runcareers.Finally,weofferavarietyofelectivecourseswhichfitwiththegoalsofourprogram,notablyIndustrialOrganization,EconomicsofHealthcare,LaborEconomics, EnergyEconomics, andFinancial Econometrics.ARECdoesnotofferanyoftheseelectives.

• Astheeconomicsdepartmentoftheuniversity—andadepartmentthathasbeenhighlysuccessful in graduate training and research—we are optimally situated to offer thecurriculumnotedhere.Ourfacultyhavepublishedoveradozenpapers inthetop-fivegeneral interest economics journals (American Economic Review, Journal of PoliticalEconomy, Econometrica, Quarterly Journal of Economics and Review of EconomicStudies) over the past 10 years. Generally, these papers reflect the integration ofknowledge from one or more domains that make fundamental contributions toeconomic scienceasawhole.Beingadepartment ina specializedareaofeconomics,AREC faculty have published no papers in the top five general interest economicsjournals.Asanexampleofhowour researchwillhelp in themaster’sprogram,Profs.GowrisankaranandReynolds(togetherwiththeir formerPhDstudentMarioSamano),have a recent paper in the Journal of Political Economy that estimates the cost ofintermittency for renewable energy. This paper uses big data methods, equilibriumtheory,computationaleconomicsandinsightsfromenergyeconomicsinordertomakegeneralinterestcontributionstoeconomics.Understandingsolutionstoenvironmentalandenergychallengesusingmoderneconomictools isoneareainwhichourmaster’sstudentswillbenefit.

• There is also a significant difference in the financial structure of the two programs.AREChas run a small programover the years and relied onoffering assistantships toattract students. Our plan is to run a larger program with 50 students entering theprogrameachyearwithoutofferingassistantships toattract students. Theadditionalrevenue will therefore cover the cost of the additional faculty required to teach theprogram and provide significant additional revenue to the university as a whole, asshownintheproformastatements.

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In sum, theEconomicsDepartment isofferingamastersprogramwithmoredepth ineconomic theory and econometrics as well as much more breadth in the areas ofeconomicsthantheARECprogram.Thatisanaturaloutcomeoftheresearchdoneinthe two departments. The AREC faculty’s research is heavily focused on agriculturaleconomicandwaterissues,whiletheresearchbytheEconomicsfacultyspansabroadrangeofeconomics.

Side-by-sidecomparisonoftheessentialsofthetwoprograms:

MSinEconometricsandQuantitativeEconomics

MSinAgriculturalandResourceEconomics

Theorycore:MicroeconomicTheory1(ECON501A):

• Individualdecisionmaking1. Consumersandfirms2. Behavioralapproaches3. Uncertaintyandambiguity

• Partialequilibrium• GeneralEquilibrium

MicroeconomicTheory2(Econ501C)• Game theory (interactive decision

making)• Informationeconomics• Selectedapplications inbargaining,

signaling, agency theory, auctiontheoryandmechanismdesign

The core emphasizes modern decisiontheory and game theory, essential toolsfor our electives. For example, IndustrialOrganization uses game theory tounderstandmarketpower;MarketDesignuses it to identify optimal price-basedallocationmechanisms (e.g. auctions) andnon-priceprocedures(e.g.matchingorgandonors with patients), and BehavioralEconomics combines these tools withinsights from psychology, field data, andexperimental data for added realism inmodelingeconomicbehavior.

Theorycore:ProductionEconomics(AREC504)

• Theoryofthefirm1. Productsupply2. Factordemand3. Resourceallocation

Consumer Economics and Price Analysis(AREC513)

• Theoryoftheconsumer1. Demand2. Marketequilibrium3. WelfareAnalysis

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Methodologycore:MathematicalEconomics(ECON519)(3units)

• Point-settopology• Linearalgebra• Multivariatecalculus• Constrained and unconstrained

optimization• Envelopetheorems• Comparativestatics• Fixed-pointtheorems

Methodologycore:MathematicsforEconomists(AREC580)(2units)

• Matrixalgebra• Functions• Limits• Differentiation• Comparativestatics• Constrained and unconstrained

optimization

Quantitativecore:Theory of Quantitative Methods inEconomics(ECON520)

• Probabilitytheory• Univariatestatistics• Modernmethodsof inference that

account for dependent outcomes(“clustering”).

EconometricsI(ECON522A)Econometric tools used in applications,including:

• Modelingofdynamics• Potentialoutcomemodel• Averagetreatmenteffectsmodels• Linear and nonlinear models with

endogeneity• Machinelearning• Prediction• Thebootstrap• Estimatinggames• Estimation using data sets with a

large number of explanatoryvariables(“BigData”)

Quantitativecore:Introduction to Statistical Methods inEconomics(AREC548)

• Fundamental statistical theoryunderlyingeconometrictechniquesutilizedinapplications

AppliedEconometricAnalysis(AREC549)

• Econometricmodel-building• Estimation, forecasting and

simulation for problems inagricultural and resourceeconomics

In addition, in the subplan AppliedEconometricsandDataAnalytics studentsare required to take Advanced AppliedEconometricAnalysis(AREC559)

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Quantitativecore(continued):EconometricsII(ECON522B)Further development of the econometrictoolsetwithtopicschosenfrom:

• Discrete and limited dependentvariablemodels

• Paneldatamethods• Nonparametricregressionmethods• Quantileregressionmethods• Timeseriesmethods• Integration of tools in applications

to firm pricing, consumer choices,product placements, labor marketchoices, health applications andenvironmentalapplications

Thequantitativecore iscloselytiedtoourelectives: Econ 522 A and Econ 522 Bconsiderapplications to finance, industrialorganizationandlaboreconomics,andusereal datasets from these domains toestimatethesemodels.Electives:MarketDesign(ECON501D)

• Auctions (spectrum, onlineadvertisements)

• Electricitymarkets• Matching (school choice, medical

residents and hospitals, kidneyexchange)

• E-commerceExperimentalEconomics(ECON506)

• Experimentalmethods• Decisionmakingunderrisk• Socialpreferences• Games(interactivedecisions)• Assetmarkets• Auctions

Electives:TheMSinAgriculturalandResource Economics offers two subplansandtheelectivesdifferbysubplan.Subplan Applied Econometrics and DataAnalytics:

• Bayesian Modeling & Inference(ISTA410/510)

• AppliedTimeSeriesAnalysis(GEOS585A)

• Introduction to Machine Learning(ISTA421/521)

• Statistical Machine Learning andDataMining(MATH574M)

• Data Mining for Business

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BehavioralEconomics(Econ536)

• Decisionmakingundercertainty• Probabilityjudgement• Decisionmakingunderuncertainty• Intertemporalchoice• Game theory (interactive decision

making)FinancialEconometrics(ECON522C)

• Efficientmarkethypothesis• Risk-neutralvaluation• ARCH• GARCH• Riskmanagement• Optionvaluation

EconomicsofHealthCare(ECON527)

• Cost, quality and access in healthcare

• Organization of public and privatehealthinsuranceintheUS

• Design issues for health insurancemarkets

• Affordable Care Act (and ongoingattemptstorepeal/replace)

IndustrialOrganization(ECON560)

• Monopolypricing• Collusionandcartels• Estimation of models of product

differentiationwith discrete choicemethods

• Pricediscrimination• Antitrustlaws

LaborEconomics(ECON572)

• Labordemand• Laborsupply• Equilibrationinlabormarkets

Intelligence(MIS545)• Simulation Modeling and Analysis

(SIE531)• Applications of Geographic

InformationSystems(GEOG503)• GIS for the Social Sciences (GEOG

516F)• Spatial Analysis and Modeling

(HWRS573)SubplanEconomicsandPolicyAnalysis

• 9 units of elective courses aretaken in the subject areasEnvironmental & ResourceEconomics, DevelopmentEconomics, and AppliedEconometrics.

• Up to 6 units of thesis creditmaybetaken.

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• Cyclical fluctuations in labormarkets

• HumancapitalinvestmentsEnergyEconomics(ECON573)

• Energy markets (coal, oil, naturalgas,electricity)

• Applied econometrics: energydemandandforecasting

• Competition,pricingandregulationintheelectricityindustry

• EnergyFutures• Environmentalandclimatepolicy

The game theoretic and behavioralorientation is unique to the proposedprogram. It depends heavily on thedecision theoretic and game theoreticorientation of our core. Likewise themicroeconomics focus of the applicationsof quantitativemethods sets our programapartfromprogramsatpeerinstitutions.Ittakes at advantage of the traditionalstrengths of our department in micro-econometrics and appliedmicroeconomics, both which are directlyrelevant to business applications andcreate synergies with other programs inthe Eller college of management (ourFinancial Econometrics course, forexample,willbeof interest to students infinanceandaccountingandourEconomicsofHealthCarecoursewillbenefitstudentsin the proposed Master’s in Health CareManagement).

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EXPECTEDFACULTYANDRESOURCEREQUIREMENTS

A. FACULTY

1. CurrentFacultyName:AndreasBlumeRank:ProfessorHighestDegree:Ph.D.Department:EconomicsLevelofInvolvement:13.3%NumberofMaster’sTheses:0NumberofDoctoralDissertations:16BriefVita:Dr.AndreasBlumeisMcClellandProfessorandheadoftheDepartmentofEconomicsattheUniversityofArizona.Heisanexpertingametheoryandoneoftheleadingresearchersontheroleofcommunicationandlanguageinstrategicinteraction,usingbothgametheoreticandexperimentalmethods.HereceivedhisPh.D.inEconomicsfromtheUniversityofCalifornia-SanDiegoandheldpositionsattheUniversityofIowa(1989-2000),UniversityofPittsburgh(2000-2012),andUniversityofArizona(2012-present).Duringtheacademicyear2011-2012hewastheRogerW.FergusonJr.andAnnetteL.NazarethMemberoftheInstituteforAdvancedStudy,Princeton.HehasbeenonextendedstaysasavisitingresearcherattheHausdorffResearchInstituteforMathematics(Bonn,Germany),theCenterforMathematicalEconomics(IMW)(Bielefeld,Germany),theInstituteofSocialandEconomicResearch(Osaka,Japan),theUniversityofBristol(Bristol,UK),BostonUniversity(Boston,MA),CenterforEconomicResearch(Tilburg,TheNetherlands),etc.Dr.Blumeistheauthorof31refereedjournalarticles,includingpublicationsinleadinggeneralinterestjournals(Econometrica,TheAmericanEconomicReview),topfieldjournalsineconomictheory(JournalofEconomicTheory,TheoreticalEconomics)andgametheory(GamesandEconomicBehavior),andinphilosophyjournals(Erkenntnis).HehasreceivedthreegrantsfromtheNationalScienceFoundationandiscurrentlyontheeditorialboardofGamesandEconomicBehavior,theleadingjournaldevotedtogametheoryanditsapplicationsineconomics,politicalscience,computerscienceandpsychology.

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Name:PriceFishbackRank:ProfessorHighestDegree:Ph.D.Department:EconomicsLevelofInvolvement:13.3%NumberofMaster’sTheses:0NumberofDoctoralDissertations:30+BriefVita:PriceFishbackistheThomasR.BrownProfessorofEconomicsattheUniversityofArizona,aFellowoftheTIAA-CREFInstitute,andaResearchAssociatewiththeNationalBureauofEconomicResearch.Heandco-authorShawnKantorwereawardedaPaulSamuelsonCertificateofExcellencebytheTIAA-CREFInstitutefortheirbookAPreludetotheWelfareState:TheOriginsofWorkers’Compensation(2000).TheyalsoreceivedtheLesterPrizeforOutstandingBookinLaborEconomicsandIndustrialRelationsbytheIndustrialRelationSectionsatPrincetonUniversity.HisotherbooksincludeWellWorthSaving:HowtheNewDealSafeguardedHomeownership(2013);GovernmentandtheAmericanEconomy:ANewHistory(2007)andSoftCoal,HardChoices:TheEconomicWelfareofBituminousCoalMiners,1890-1930(1992).PriceisthecurrentExecutiveDirectoroftheEconomicHistoryAssociation(EHA)andservedasco-editorofTheJournalofEconomicHistoryfrom2008to2012.TheEHAhastwiceawardedhimtheArthurColePrizeforBestArticleintheJournalofEconomicHistory(1997/98and2014/15)andawardedhimtheJonathanHughesPrizeforTeachingEconomicHistoryin2015.PriceisaFellowoftheCliometricsSocietyandwasoneoftheorganizersoftheCliometricsConferencebetween1996and2008.Theterm“cliometrics”wascoinedinthe1960’sandisaquantitativeapproachtoeconomichistoryusingeconomicsandstatistics.HehasreceivedfundingfromtheNationalScienceFoundationtopursueseveralcurrentprojects:studiesoftheboom,bust,andslowrecoveryinhousingandmortgagemarketsinthe1920sand1930s,theimpactontheeconomyofNewDealprograms,theimpactofWorldWarII,longrunchangesinclimateandgovernmentpolicyandhowtheyaffectagriculture,andtheresponseofstategovernmentstotheGreatDepressionandNewDeal.FishbackreceivedhisdoctorateineconomicsattheUniversityofWashingtonin1983aftergraduatingfromButlerUniversityinEconomicsandMathematicsin1977,whereheisamemberofPhiBetaKappaandPhiKappaPhi.HetaughtandperformedresearchattheUniversityofGeorgiaandtheUniversityofTexasinthe1980s,andthenmovedtothe

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UniversityofArizonain1990.Pricehaswonanumberofawardsforteachingattheundergraduate,MBA,andPhDlevels.Hehassupervisedover30Ph.D.dissertationsandservedoncommitteesformorethan60otherPh.D.students.

Name:GautamGowrisankaranRank:ProfessorHighestDegree:Ph.D.Department:EconomicsLevelofInvolvement:13.3%NumberofMaster’sTheses:0NumberofDoctoralDissertations:16GautamGowrisankaranistheArizonaPublicServiceProfessorofEconomicsintheDepartmentofEconomics,EllerCollegeofManagement,UniversityofArizona,wherehehastaughtintheundergraduate,MBA,andPh.D.programs.HeobtainedhisB.A.fromSwarthmoreCollegein1991andhisPh.D.fromYaleUniversityin1995.HewillreceiveanHonoraryDoctoratefromtheUniversityofOuluinFinlandin2017.Prof.GowrisankaranhasservedasaregularorvisitingfacultymemberatHarvardUniversity,UniversidaddelosAndes(Chile),theUniversityofChicago,theUniversityofMichigan,theUniversityofMinnesota,NorthwesternUniversity,YaleUniversityandWashingtonUniversityinSt.Louis.Prof.GowrisankaranisProfesseuraffiliéattheHECMontréalBusinessSchoolandisaResearchAssociateoftheNationalBureauofEconomicResearch.Prof.Gowrisankaranisanexpertonhospitalcompetitionandquality,bargainingmodels,consumerdurablegoodsmarkets,networkeffects,andtheeconomicsofrenewableenergy,amongotherareas.Prof.Gowrisankaran’sworkhasbeenpublishedinleadingeconomicsjournalsincludingtheAmericanEconomicReview,Econometrica,theJournalofPoliticalEconomy,andtheRANDJournalofEconomics.HisresearchhasbeenfeaturedinmediaoutletsrangingfromtheChicagoTribunetoAssociatedPressandhehasappearedasatelevisionpanelistforArizonaPublicMediaandotherlivemediasources.Prof.GowrisankaranhasservedasprincipalinvestigatoronfourNationalScienceFoundation(NSF)grants,andonegranteachfromtheAgencyforHealthCareResearchandQuality(AHRQ)andtheCommonwealthFund,andasco-principalinvestigatoronagrantfromAHRQ.HeiscurrentlyontheBoardofEditorsoftheAmericanEconomicReviewandisanAssociateEditoroftheInternationalEconomicReview,theRANDJournalofEconomics,andtheJournalofBusinessandEconomicsStatistics.Prof.

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Gowrisankaranisfrequentlyinvitedtopresenthisworkatseminarsandtogivekeynotespeechesincludingdeliveringthe2017GrossmanLectureatColbyCollege.Togetherwithco-authors,heisthewinnerofthe2016AntitrustWritingAwardforbestacademicpaperonmergersandthe2016BestPaperAwardfromtheWorkshoponHealthITandEconomics.Prof.Gowrisankaranhasservedasaconsultantinseveralantitrustcases,workingwiththeDepartmentofJustice,theFederalTradeCommission,stateAttorneysGeneralandprivatefirms.Hehassubmittedexpertreportsand/orofferedexperttestimonyinantitrustandregulatorycasesinvolvingMicrosoft,Telstra,LCDpanelmakers,CabellHuntingtonHospital,andElectrolux.Name:CharlesNoussairRank:ProfessorHighestDegree:Ph.D.Department:EconomicsLevelofInvolvement:13.3%NumberofMaster’sTheses:0NumberofDoctoralDissertations:8

BriefVita:Dr.CharlesNoussairisEllerProfessorofEconomicsattheUniversityofArizonaandtheDirectoroftheEconomicScienceLaboratory.HereceivedhisPhDfromtheCaliforniaInstituteofTechnology(1993)andhasheldpositionsatErasmusUniversityRotterdam(1992–1994),PurdueUniversity(1994–2002),EmoryUniversity(2002–2006),TilburgUniversity(2006-2015,andtheUniversityofArizona(2015–present).Heisanexpertinthefieldofexperimentaleconomicsasisthecurrentco-editorinchiefatthejournalExperimentalEconomics.

Dr.NoussairhaspublishedpapersinleadinggeneralinterestjournalsineconomicssuchastheAmericanEconomicReview,Econometrica,JournalofPoliticalEconomyandtheReviewofEconomicStudies.HehasalsopublishedintheJournalofFinanceandManagementScience.HeservedasthePresidentoftheSocietyofExperimentalFinancefrom2014–2015.

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Name:TiemenWoutersenRank:AssociateProfessorHighestDegree:Ph.D.Department:EconomicsLevelofInvolvement:13.3%NumberofMaster’sTheses:0NumberofDoctoralDissertations:6TiemenWoutersenisAssociateProfessorofEconomicsintheDepartmentofEconomics,EllerCollegeofManagement,UniversityofArizona,wherehehastaughtinthePh.D.programsandofferedreadingcoursestoundergraduates.HeobtainedhisPh.D.fromBrownUniversityin2000.Prof.WoutersenhasservedasaregularorvisitingfacultymemberatMassachusettsInstituteofTechnology(MIT),JohnsHopkinsUniversity,andWesternUniversity(Canada).Prof.Woutersenisanexpertineconometrics,inparticular,intheestimationandtestingofsemiparametricmodels,nonparametricmodels,modelsthatonlyyieldbounds,andmodelswithmanyinstruments.RecentworkincludesimprovingtheHausmantestbyincreasingitspower.Prof.Woutersen’sworkhasbeenpublishedinleadingeconomicsjournalsincludingEconometrica,QuantitativeEconomics,andtheJournalofEconometrics.Prof.WoutersenisfrequentlyinvitedtopresenthisworkatseminarsandtogivekeynotespeechesincludingattheTinbergenInstitute(Amsterdam),BeijingUniversity,XiamenUniversityandRenminUniversity.Prof.WoutersenhasservedasaconsultantineconometricsattheWorldBankandsubmittedexpertreportsoneconometrictechniquesindevelopmenteconomics.HehassupervisedsixPh.D.dissertationsandservedoncommitteesformorethan30otherPh.D.students,manyofwhomwrotedissertationsinappliedmicroeconomics.

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2. AdditionalFaculty

TheEconomicsDepartmentcurrentlyhas19tenuretrackfacultyandisintheprocessofhiring3additionalfacultytoreachabaselevelof22tenuretrackfaculty.Tooperatethemaster’sprogramweplantoadd5additionaltenuretrackfacultytothebaseof22overathree-yearperiod:weplantohireoneassociate/fullprofessorandoneassistantprofessorduringthe2017-18academicyear,oneassociate/fullprofessorandoneassistantprofessorduringthe2018-19academicyearandoneassistantprofessorduringthe2019-20academicyear.Duringthetransitionperiod2018-20,someofourcurrentfacultywillassumearoleinthemaster’sprogram,withtheircurrentteachingresponsibilitiesintheundergraduateprogramtakenoverbysomeofourhigh-performinggraduatestudents.Wewillcreateaspecialprogramforourtopgraduatestudentsthatwillprovidethemwithfundingtostayforanextrayearandprovidethemwithdedicatedteachingtraining.

3. CurrentStudentandFacultyFTEs

AccordingtoFall2015censusdata,theDepartmentofEconomics(3009)had0.75undergraduateFTEs,andatotalof22.25graduateFTEs.Duringthesameperiod,theEconomicsDepartmentfacultyincluded19.80tenuredortenure-trackeligibleFTEsand8.12non-tenure-trackFTEs,including2.4FTEsrepresentedbyadjunctlecturers.Thisresultsin27.9FTEstotalforfaculty.Fall2016datashowstheEconomicsDepartmenthad2.0undergraduateFTEs,and22.75graduate-studentFTEs,with50graduatestudentsenrolled.Duringthisperiod,Economicsfacultyincluded18.80tenuredortenure-trackeligibleFTEs,7.91non-tenure-trackFTEs,including1.175FTEsrepresentedbyadjunctlecturers.Inthisperiod,totalfacultyFTEsis26.71.

4. ProjectedStudentandFacultyFTEs

TheEconomicsDepartmentexpectstomaintainroughlythesamenumberofundergraduateFTEsinthenext3years,with1.5FTEsperyearonaverageduringthatperiod.WeanticipategrowthinFTEsinthegraduate-studentareathatalignswiththenumberofstudentsaddedthroughthenewprogram.EachTAcourseassignmentisassumedtobe0.25FTE.Weassumethateachcorecoursetaughtinthenewprogram

32

willbeassignedonegraduateteachingassistant(GTA).ElectivecoursesinthenewprogramwillbeassignedoneGTAifenrollmentisgreaterthan15students.Weassumethatinthefirstyear,noneoftheelectiveswillhaveenoughstudentstorequireaGTA,butthattheywillstarttofillto15orgreaterenrollmentinsubsequentyears.OuraverageteachingassistantFTEforourPh.D.studentshasbeen18.0totalannually.Wewouldanticipateadding1.0FTEtothatnumberintheYear1ofthemaster’sprogram,0.5FTEinYear2,and0.5FTEaddedinYear3.Thatwouldreflecttotalgraduate-studentFTEsof19.0inYear1;19.5FTEinYear2;and20.0FTEinYear3.TheEconomicsDepartmentcurrentlyisconductingthreeongoingsearches,which,ifsuccessful,willbringthedepartmentto22FTEbythebeginningofFY2017-18.Taking22FTEasabaseline,thedepartmentintendstobuilduptoa27FTEoverthethree-yearimplementationperiod.InYear1,twonewfacultyhiresareanticipated(oneAssistant,oneFull).InYear2,twomorenewfacultywouldbeadded(oneAssistant,oneFull),andinYear3,oneAssistantpositionwouldbeadded.Duringthethree-yeartransitionperiod,currenttenure-trackfacultywillstepintoteachinthemaster’sprogram,whilelecturersandadvancePh.D.students(temporarily)assumetheirresponsibilitiesintheundergraduateprogram.

3-YearProjectedGAStudentFTEs Year1 Year2 Year3ExistingAverageFTEannually 18 19 19.5NewMSEconprogramadditions 1.0 0.5 0.5TotalGAFTEs 19.0 19.5 20.0

3-YearProjectedFacultyFTEs Year1 Year2 Year3Existing 22 24 26NewMSEconprogram 2 2 1TotalFacultyFTEs 24 26 27

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B. LIBRARY

1. AcquisitionsNeededN/A

C. PHYSICALFACILITIESANDEQUIPMENT

1. ExistingPhysicalFacilities

Presentfacilitiesareadequate.

2. AdditionalFacilitiesRequiredorAnticipated

N/A

D. OTHERSUPPORT

1. OtherSupportCurrentlyAvailable

Currently,theDepartmentofEconomicshastwofull-timestaffmemberssupportingtwoprograms:anundergraduateprogramcoordinator,andaPh.D.-programcoordinator.Thedepartmentreliesononepart-time(.60FTE)grants-and-seminarscoordinatortosupportfacultyanddepartmentactivityintheseareas.Afull-timeacademicadviserdedicatedtoadvisingEconomicsundergraduatestudentsisalsoonourstaff.

2. OtherSupportNeeded,NextThreeYears--Listadditionalstaffneeded

andotherassistanceneededforthenextthreeyears.WhentheMSinEconometricsandQuantitativeEconomicsisapproved,theEconomicsDepartmentintendstoaddaprogramcoordinatortooverseemarketing,recruitment,andplacementeffortsforthemaster’sprogram.Wewillneedadditionalmarketingsupport,asweintendtoputtogetherapolishedbrochureandwebsitethathighlightsthestrengthsofthemaster’sprogram.

34

VI. FINANCING

A. SUPPORTINGFUNDSFROMOUTSIDESOURCESWeareintheprocessofreachingouttoprivatedonorsforsupplementalsupport.

B. BUDGETPROJECTIONSFORM

Attachedasanaddendumisthefinancialmodelthatpresentsexpensesandrevenuesexpectedtobeassociatedwiththeprogram.Theassumptionsinthisbudgetareasfollows:1. FivefacultyFTEwillbeaddedgraduallytocoverthenewprogram:2FTEinthe

firstyear,2FTEinthesecondyear,and1FTEinthethirdyear.Duringthethree-yearbuildup,currenttenure-trackfacultywillstepintoteachinthemaster’sprogram,whilelecturersandadvancedPh.D.studentstemporarilyassumetheirresponsibilitiesintheundergraduateprogram.

2. Enrolledstudentsareassumedtobe80%non-resident.3. Themodelusesanaveragesalaryforthemixtureof2full-and3assistant

professors.4. Anticipatedtuitionandsalaryincreasesarefactoredinforeachyear.

VII. OTHERRELEVANTINFORMATION

Wewillbecharging$6,030fortuitionplusaprogramfeeof$5,750persemestertoArizonaresidents(theprogramfeeisthesameforallMaster’sprogramsintheEllerSchoolofManagement).Withathree-semesterprogramthisamountsto$35,340fortheentireprogram.Non-residents/internationalstudentspay$17,484plustheprogramfeeof$5,750persemester.Thiscomesto$69,702fortheentireprogram.AttheUniversityofTexas-Austin,Texasresidentspay$1,129percredithour;assuminga30unitMA,thiscomesto$33,870.Outofstate/intl.studentspay$1,738perhour;30unitscomesto$52,140.AttheUniversityofWisconsin-Madison,Wisconsinresidentspayafixedrateof$5,971.16over8units;assuming3full-timesemestersfortheMA,thecostwouldbe$17,922.48.Outofstate/intl.studentspayafixedrateof$12,634.60over8units;over3full-timesemesters,thecostwouldberoughly$37,903.80.

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VIII. REQUIREDSIGNATURES: Managing Unit Administrator:_______________________________________________________

(name and title)

Managing Administrator’s Signature: _____________________________ Date:

Managing Unit Administrator:_______________________________________________________

(name and title)

Managing Administrator’s Signature: _____________________________ Date:

Managing Unit Administrator:_______________________________________________________

(name and title)

Managing Administrator’s Signature: _____________________________ Date:

Dean’s Signature: _______________________________________________ Date: _____________

Dean’s Signature: _______________________________________________ Date: _____________

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All programs that will be offered through distance learning must include the following signature. The signature of approval does not indicate a commitment to invest in this program. Any potential investment agreement is a separate process. Joel Hauff, Associate Vice President of Student Affairs & Enrollment Management/Academic Initiatives and Student Success Signature: _______________________________________________ Date: ____ All programs that will be offered fully online must include the following signature: The signature of approval does not indicate a commitment to invest in this program. Any potential investment agreement is a separate process. Vincent Del Casino Jr., Vice Provost for Digital Learning and Associate Vice President of Student Affairs & Enrollment Management Signature: _______________________________________________ Date: ____ Note: In some situations, signatures of more than one unit head and/or college dean may be required.

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Appendix A – Comparison with peer institutions

38

Comparable Curricula at Peer Institutions for Graduate Curriculum Requests

Program Name/University

University of Arizona

Master of Science in Econometrics and Quantitative

Economics

University of Texas at Austin Master of Arts in Economics

University of Wisconsin-

Madison Master in Economics

Currently enrolled students

0 90 (+/-) 90(+/-)

Number of Faculty for program

Currently 19 tenure track faculty. We are hiring to get to our baseline of 22 TT faculty and intend to add 5 TT faculty for the MS

30 TT faculty of which an equivalent of 5 teach in the MA program.

35 tenure track faculty of which an equivalent of 5 are teaching in the MA program.

Focus Analytical Quantitative Experimental

Analytical Quantitative

Quantitative

Starting framework

Rigorous training in economic modeling, quantitative and experimental methods that will help students with causal inference and decision support.

Rigorous quantitative training in the economics core (microeconomics, macroeconomics and econometrics)

Prepares students for high-level professional careers in government and industry or further study for the Ph.D. degree

Methodological Approaches

Applying decision theoretic, game theoretic, econometric and experimental methods to identify causal links and quantitative impacts of firm decision and policy changes.

Applying analytical and statistical tools to evaluate the impacts of decisions at the micro and macro levels.

Applying analytical and statistical tools to evaluate the impacts of decisions at the micro and macro levels.

39

Exemplary Question

What is the long-run impact of preschool education on health, well-being, and achievement?

What is the impact of quantitative easing on inflation and employment?

What sophisticated theoretical and quantitative skills does one need to be competitive in the job market?

Sample Course(s) or attach detailed curricula, as above

Market Design (Online auctions, spectrum auctions, matching transplant patients to donors, electricity markets)

Macroeconomics (Economic growth, business cycles, employment, inflation)

Macroeconomics I (Aggregate output, labor markets, economic growth, business cycles)

Target Careers Technology companies, market analysis companies, government positions in the U.S. and abroad; Ph.D. programs.

Private and public sector; economic and financial consulting; Ph.D. programs.

High-level professional careers in government and industry or further study for the Ph.D. degree.

Total Units Required

30 30 30

Pre-Admissions expectations (i.e. academic training to be Completed Prior to Admission)

Undergraduate degree, not necessarily in economics but with some exposure to economics. Calculus, including multivariate calculus, linear algebra, strong GRE, high GPA in economics and

Undergraduate degree, not necessarily in economics but with some exposure to economics. Calculus, including multivariate calculus, linear algebra, strong

Undergraduate degree, not necessarily in economics. Applicants are expected to have taken college-level economics courses in introductory microeconomics, introductory

40

mathematics coursework. International students must achieve a TOEFL score of at least 79

GRE, high GPA in economics and mathematics coursework. International students must achieve a TOEFL score of at least 79.

macroeconomics, intermediate microeconomics, and a total of three semesters of calculus and linear algebra. They must have taken the GRE. International students must achieve a TOEFL score of 92 or better.

Research Methods, Data Analysis, and Methodology Requirements

Probability and statistics, mathematics for economists

Probability and statistics, mathematics for economists

Econometrics, Mathematical Economics

Internship, Practicum, Applied Course Requirements. (Yes/no. If yes, please describe.)

No (Optional)

No (Optional)

No

Master Thesis or dissertation required (Yes/No)

No No No

Additional Requirements (Please Describe.)

No

No

No

# of Elective Units in the Major.

6 12 9

Minor options (as relevant)

N/A N/A N/A

41

Appendix B – Curricula of peer institutions

Home Undergraduate Masters Doctoral Faculty & Staff Alumni Events

HOME MASTERS PROGRAM GUIDELINES PROGRAM COURSEWORK

Master's Program CourseworkBelow is the standard course list and sequence for the Master'sprogram. Most Master's students follow this plan exactly as shown.Please consult the Schedule of Classes, Public Class Search forcourse descriptions and instructor information.

Semester 1 (Fall)Economics 701: Microeconomics 1Economics 704: Econometrics 1 (Econometric theory)Economics 700: Mathematical Economics

Semester 2 (Spring)Economics 702: Macroeconomics 1 (theory)Economics 705: EconometricsEconomics 708: Microeconomics 2

Semester 3 (Fall)Economics 706: Applied EconometricsAdvanced Elective or Economics 712*: (first semester of Ph.D.macroeconomics for advanced students).Advanced Elective or Economics 711*: (first semester of Ph.D.microeconomics for advanced students).For students wanting to complete the program in three semesters:Advanced Elective or Economics 709*: (first semester of Ph.D.econometrics for advanced students).

Semester 4 (Spring)

/ / /Master'sProgram

Admission

Courses

ProgramGuidelines -Administration -Requirements -Coursework -Progress andExpectations

FAQs

Resources

Tuition

Placement

EconomicsUNIVERSITY OF WISCONSIN - MADISON

Department of EconomicsWilliam H. Sewell SocialScience Building1180 Observatory DriveMadison, WI 53706-1393

Chair: Ananth Seshadrieconchair@ssc.wisc.eduUndergraduate Office:608.262.6925econadvise@ssc.wisc.eduGraduate Office:608.262.3559gradpro@ssc.wisc.eduGeneral Information:608.263.2989Fax: 608.262.2033

UndergraduateProgram

Master's ProgramDoctoral Program

FacultyStaff

AlumniEvents

!

Advanced Elective or Economics 713*: (second semester of Ph.D.microeconomics for advanced students).Advanced Elective or Economics 710*: (second semester of Ph.D.econometrics for advanced students).Advanced Elective, Independent Study, or Economics 714*: (secondsemester of Ph.D. macroeconomics for advanced students).

*The option to take Ph.D. courses during the second year of theMaster's program will be decided by the Director of the Master'sProgram after the completion of the first year of the program.

In addition to the core economics courses, students select nine creditsof electives. Eligible electives are courses numbered 300 or above andshould be relevant to the economics degree. Electives typically aretaken in the second year of the program.

Examples of Advanced Electives include:

Economics 442: Macroeconomic PolicyEconomics 460: Economic ForecastingEconomics 475: Economics of GrowthEconomics 521: Game Theory & Economic AnalysisEconomics 548: Economics of Health CareEconomics 666: Issues-International Finance

For degree requirements and enrollment policies information, pleasesee the Program Requirements page in our Program Guidelines.

CurriculumThe 10-month degree program has been designed to be completed mid-July through mid-May. Students are required to take ten3-credit courses for a total of 30 credit hours. Courses are offered in a 2-4-4 format, with two courses in the summer semester,four courses in the fall semester, and four courses in the spring semester. No thesis is required. See below for detailedinformation about course offerings.

The 18-month and 24-month degree programs also begin in mid-July but are completed later. For the July 2016 entering cohort,these programs would end in December 2017 and May 2018, respectively. The degree requirements, including completion of thecore courses and 30 graded credit hours, will be the same for all degree tracks. A thesis option is not required (or offered) in anyof the degree tracks. A longer degree option can be a good fit for many students, including those looking to: complete the degreeat a slower pace; work part-time or pursue an internship while completing the degree, build a stronger profile for PhDapplications or private-sector jobs, and/or take additional Economics courses.

The following chart provides a side-by-side comparison of the three program tracks. The program staff will work closely withindividual students on their course choices and the progress to degree.

Semester 10-month 18-month 24-month

SummerMath for EconomistsProbability & StatisticsOptional: Real Analysis

Math for EconomistsProbability & StatisticsOptional: Real Analysis

Math for EconomistsProbability & StatisticsOptional: Real Analysis

Fall

MicroeonomicsEconometricsMacroeconomics1 elective

MicroeconomicsEconometricsMacroeconomics or 1 elective

MicroeconomicsEconometricsMacroeconomics or 1 elective

Spring 3-4 electives2-3 electivesOptional: Internship

1-3 electivesOptional: Internship

FallMacroeconomics (if not yet taken)2-3 electivesOptional: Internship

Macroeconomics (if not yet taken)1-3 electivesOptional: Internship

Spring1-3 electivesOptional: Internship

RigorThe MA program is highly ranked nationally. The technical level of the MA program has been targeted to be in between the levelof intermediate undergraduate courses and first-year doctoral courses. (For example, the Micreconomics course (ECO 394K) willbe more advanced than our undergraduate Intermediate Economics (ECO 420K) and less advanced than our doctoralMicroeconomics I (ECO 387L.1).) The MA courses have been specially designed for this program and are completely distinctfrom our PhD courses.

Some sample course syllabi are provided below.Some sample course syllabi are provided below.

Comparable ProgramsThe MA curriculum will fully prepare students who wish to apply to economics PhD programs. The curriculum is similar inrigor to the Master’s programs offered at other top departments (Boston University, Duke University, New York University,Columbia University). Please note that the technical level of this program is more advanced than most “Applied Economics”master’s programs. For a list of other terminal master’s programs in the United States, please visit the American EconomicAssociation website.

CoursesAdditional details on the MA courses are provided below. Five core courses are offered in the summer and fall semesters

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combined. Elective courses will be offered in both the fall and spring semesters. In addition to brief course descriptions, we haveprovided sample textbooks for some of the courses; while these textbooks will not necessarily be adopted by faculty teachingthese courses, they do provide a good sense of the level at which the courses will be taught.

Summer Semester (July – August, 6 weeks)ECO 394C Mathematics for EconomistsShort description: Mathematical tools widely used for economic analysis, including advanced calculus, optimization methods,linear algebra, and dynamic systems.Sample textbooks: Fundamental Methods of Mathematical Economics by Chiang and Wainwright, Essential Mathematics forEconomic Analysis by Sydsaeter and HammondSample syllabus: Summer 2016

ECO 394D Probability and StatisticsShort description: Probability theory and statistical methods used in economics and econometrics.Sample textbooks: Probability and Statistics by DeGroot and Schervish, Mathematical Statistics with Applications byRamachandran and TsokosSample syllabus: Summer 2016

ECO 395M Real Analysis for Economists (Optional)Short description: An introduction to real analysis, including coverage of Euclidean spaces, one-variable analysis (continuity,compactness, differentiation, integration), and sequences and series of real-valued functions.Sample textbooks: Analysis, with an Introduction to Proof, 5th edition by LaySample syllabus: Summer 2016

Fall Semester (August – December)ECO 394K MicroeconomicsShort description: Rigorous introduction to the methods of microeconomic theory, including consumer and producer theory,decision under uncertainty, markets and competition, and general equilibrium.Sample textbook: Advanced Microeconomic Theory by Jehle and RenySample syllabus: Fall 2016

ECO 394L MacroeconomicsShort description: Dynamic optimization concepts and methods used in modern macroeconomics. General equilibriumapplications in the areas of economic growth, business cycles, and the role of monetary and fiscal policy.Sample textbook: Modern Macroeconomics by ChughSample syllabus: Fall 2016

ECO 394M EconometricsShort description: Identification and estimation of linear and nonlinear regression models. Inference and hypothesis testing.Sample textbooks: Introductory Econometrics: A Modern Approach by Wooldridge, Econometric Analysis of Cross Section andPanel Data by WooldridgeSample syllabus: Fall 2016

ECO 395K.1 Game Theory (Optional)Short description: Introduction to game theoretic concepts and analyses and their application to study strategic interactionsbetween individuals, firms, and other economic agents.Sample textbooks: Games and Information by Rasmussen, Game Theory for Applied Economists by GibbonsSample syllabus: Fall 2016

Spring Semester (January – May)Four advanced topics courses in microeconomics, macroeconomics, or quantitative methods. Possible offerings include IndustrialOrganization, Labor Economics, Financial Economics, Advanced Econometrics, Energy/Environmental Economics, MonetaryEconomics, and International Economics.

Learn more about our 2016-2017 course lineup here.

42

Appendix C – Syllabi for new courses

Econ 501 D – Spring 2019 Market Design

Instructor University of Arizona

Room: TBA Time: TBA Phone: TBA

Office: TBA Office Hours: TBA

Email: TBA

Overview Market and, more broadly, institutional design, instead of taking allocation procedures as given aims to improve their performance. Some of the prominent examples are spectrum auctions, electricity markets, school choice, kidney exchange, position auctions for online advertisements, matching of medical residents with hospitals, congestion pricing, electronic markets and e-commerce. The aim of the course is to build on the game theoretic tools from the prior semester and to explore some of the above topics in greater detail and with a focus on real world applications and on empirical as well as experimental data. Learning Outcomes By the end this course, students will be able to

• analyze a variety of different auction procedures, including single- and multi-unit auctions, across different environments, such as private values, interdependent values, independent signals, correlated signals, etc.

• evaluate different matching protocols in terms of efficiency, stability and strategy-proofness

• use tools from game theory, auction theory, and matching theory in designing actual markets

Course Material The auctions part of this course is based on material from: Vijay Krishna [2010], Auction Theory, Academic Press, Oxford. For the matching part of the course we will use: Roth, Alvin E., and Marilda Sotomayor [1992], “Two-sided matching,” in Aumann, Robert J., and Sergiu Hart (eds.) Handbook of game theory with economic applications 1, 485–541, North Holland, Amsterdam. Roth, Alvin E. [2002], “The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics,” Fisher-Schultz Lecture, Econometrica 70, 1341-1378. Roth, Alvin E. [2008], “What have we learned from market design?” Hahn Lecture, Economic Journal 118, 285-310. For the trading platform portion of the course we will use: Harvard Business School Case: PayPal Merchant Services (9-806-188) (revised, 2009) Eisenmann, Parker, and Van Alstyne [2006], Strategies for Two-Sided Markets, Harvard Business Review.

Armstrong, Mark [2006], “Competition in two-sided markets,” The RAND Journal of Economics 37, 668–691. Grading There will be two midterms and a final. Each midterm counts for 20% of your grade; the final counts for 40%; homework counts for 10%; quizzes count for 10%. The grading scale is ABCDE. Course Outline The course will devote approximately equal time to the design of auctions, match- ing markets and trading platforms. Classroom Behavior Please refrain from using electronic devices (cell phones, laptops etc.) during class. The Arizona Board of Regents Student Code of Conduct, ABOR Policy 5-308, prohibits threats of physical harm to any member of the University community, including to ones self. See: http://policy.web.arizona.edu/threatening-behavior-students Special Needs and Accommodations Statement Students who need special accommodation or services should contact the Disability Resources Center, 1224 East Lowell Street, Tucson, AZ 85721, (520) 621-3268, FAX (520) 621-9423, email: uadrc@email.arizona.edu, http://drc.arizona.edu/ . You must register and request that the Center or DRC send me official notification of your accommodations needs as soon as possible. Please plan to meet with me by appointment or during office hours to discuss accommodations and how my course requirements and activities may impact your ability to fully participate. The need for accommodations must be documented by the appropriate office. Student Code of Academic Integrity Students are encouraged to share intellectual views and discuss freely the principles and applications of course materials. However, graded work/exercises must be the product of independent effort unless otherwise instructed. Students are expected to adhere to the UA Code of Academic Integrity as described in the UA General Catalog. See: http://deanofstudents.arizona.edu/codeofacademicintegrity/. Subject to Change Statement Information contained in the course syllabus, other than the grade and absence pol- icy, may be subject to change with advance notice, as deemed appropriate by the instructor.

Economics 5XX – Fall 2018 Experimental Economics

Instructor University of Arizona

Room: TBA Time: TBA Phone: TBA

Office: TBA Office Hours: TBA

Email: TBA

Overview Experiments are used in economics, like they are in the natural sciences and in psychology, to learn about the world around us. In the case of experimental economics, the goal is to better understand how people make decisions in economic settings and how these translate into overall market and group outcomes. Experiments can also be used by individuals and firms to help them make better decisions. This is an introductory course that covers some the major results that have been obtained by using experiments in economics, as well as industrial applications of experimental economic methods. The format of the course will be a mixture of lecture and participation in classroom experiments. Learning Objectives By the end of this course students will have (1) gained knowledge of the basic results that have been documented with experimental research in economics, (2) understood the experimental method and how it can be applied in economics, (3) participated in the design of a new experiment. Course Material The textbook for the course is Markets, Games and Strategic Behavior, by Charles A. Holt, Pearson Addison-Wesley Publishers. Grading Grading will be based on class attendance and conscientious participation in the experiments (20%), two midterms and a final (80%). Your two highest exam scores will each count 40% toward your final grade. Each missed class will result in a penalty of 1% of the final grade, up to a maximum of 20. The exams will be open book and open notes. The format will be a mix of short answer and essay. No make-up midterm exams will be given and no early finals will be permitted under any circumstances. Cheating in any form will result in an automatic grade of F for the course. If you do not arrive on time for an exam, you will not be permitted to take the exam and you will receive a grade of 0 for the exam. Course Outline Week 1: Introduction to experimental methods, Readings: Text, Chapter 1, sections 1 and 2, Chapter 3 Week 2: Experimental design, Readings: Text, Chapter 1 section 3, handouts

Week 3: Decision making under risk and prospect theory 1 Readings: Chapters 4 and 27 Week 4: Decision making under risk and prospect theory 2 Readings: Chapters 28, 29, 30 Week 5: Social Preferences 1 Readings: Chapters 12, 13 Week 6: Social Preferences 2 Readings: Chapter 14 Week 7: Games and Equilibrium 1 Readings: Chapters 3, 17 Week 8: Games and Equilibrium 2 Readings: Chapters 23, 24 Week 9: Markets for services Readings: Chapters 2, 6, and 10 Week 10: Asset Markets Readings: Chapter 11 Week 11: Prediction Markets Readings: Lecture notes Week 12: Simple Auctions and Eliciting valuations Readings: Chapters 19 and 21 Week 13: Multiple Unit Auctions Readings: Chapter 22 Week 14: Smart markets and combinatorial auctions Readings: Lecture notes Week 15: Statistics for Experimenters Readings: Lecture notes

Classroom Behavior Please refrain from using electronic devices (cell phones, laptops etc.) during class. The Arizona Board of Regents Student Code of Conduct, ABOR Policy 5-308, prohibits threats of physical harm to any member of the University community, including to one’s self. See: http://policy.web.arizona.edu/threatening-behavior-students Special Needs and Accommodations Statement Students who need special accommodation or services should contact the Disability Resources Center, 1224 East Lowell Street, Tucson, AZ 85712, (520) 621-3268, FAX (520) 621-9423, email: uadrc@email.arizona.edu, http://drc.arizona.edu/. You must register and request that the Center of DRC send me official notification of your accommodations needs as soon as possible. Please plan to meet with me by appointment or during office hours to discuss accommodations and how my course requirements and activities may impact your ability to fully participate. The need for accommodations must be documented by the appropriate office. Student Code of Academic Integrity Students are encouraged to share intellectual views and discuss freely the principles and applications of course materials. However, graded work/exercises must be the product of independent effort unless otherwise instructed. Students are expected to adhere to the UA Code of Academic Integrity as described in the UA General Catalog. See: http://deanofstudents.arizona.edu/codeofacademicintegrity/. Subject to Change Statement Information contained in the course syllabus, other than the grade and absence policy, may be subject to change with advance notice, as deemed appropriate by the instructor.

Econ 522 C – Fall 2018 Financial Econometrics

Instructor University of Arizona

Room: TBA Time: TBA Phone: TBA

Office: TBA Office Hours: TBA

Email: TBA

Overview This course introduces models for financial time series and the necessary techniques to estimate and test these models. In particular, several ideas in financial econometrics will be discussed at length and used as building blocks (including the Efficient Market Hypothesis, Risk-Neutral Valuation, ARCH, and GARCH) can be tested, how the ARCH model can be estimated and tested and how realized volatility models can be used to predict volatility. The course also covers risk management and option valuation. Learning Outcomes At the end of the course the students will able to

• apply the law of one price to derive the value of financial assets; • use models to price financial assets including options; • estimate the relevant parameters of the model using maximum likelihood and

generalized method of moments. Prerequisites Econometrics at the Masters level such as 522A or permission of instructor. Course Material Stock and Watson: Introduction to Econometrics, 2nd edition. Hull: Options Futures and other Derivatives 7th edition Söderlind: Lecture Notes in Financial Econometrics (handout) Optional textbooks: Taylor: Asset Price Dynamics, Volatility and Prediction Bodie, Kane and Marcus: “Investments” 8th Edition Grading There will be about 3 homework sets. Learning by doing is important in econometrics courses, as with most math. Students who take the homework seriously should have little trouble with the midterm or project. While student cooperation and discussion is encouraged, homework assignments, including computer work, must be the work of the student whose name appears on them (i.e., your own). Homework will be collected at the beginning of class on the due date and can be given before this. Late homeworks will not be accepted. Grades will be based on homework assignments (15%), midterm (25%), class participation (10%), presentation (20%), and the project (remainder). Except in the case of a family

emergency or medical absence confirmed by a dean, no makeup or early exams will be given. Any other requests for special circumstances regarding homework or exams must be presented in writing within the first two weeks of the semester. The course does not offer ’extra credit projects. Important Dates The project is due on April 25th at 1:30 pm and the presentations are on May 2nd, at 1:30 pm in class. No class on March 21st (spring vacation). Class Attendance Class attendance is compulsory. Students registered for the course who do not regularly come to class will receive a grade of ND. Project: The project consists of a paper of about 8 pages and a 10 minute presentation (about 6 slides).

Course Outline & Topics Covered

• Returns • Law of one price • EMH (Efficient Market Hypothesis, weak, semi-strong, strong); • Earthquake Insurance (or Flood Insurance) • General Model for returns that includes jumps • Simplications of the general model: • Normal approximation (of returns) versus Excess Kurtosis • CAPM (Capital Asset Pricing Model) • APT model (Arbitrage pricing theory) • VaR (Value at Risk; important in regulation); Hull 20 • Risk-Neutral Valuation and Option Pricing (assumes that hedging is possible); Hull 9,

10, • 11,13.1-13.5, 26.1, 19 • Derivatives Mishaps; Hull 34 • Prediction (which aspects may look like the past, unit roots); Stock and Watson 16.1-

16.4 ARCH and GARCH; Stock and Watson 16.5 • Model Misspecification:

Blerina Bela Zykaj, Richard W. Sias, and Harry J. Turtle (2016): "Hedge Fund Return Dependence: Model Misspecification or Liquidity Spirals?" Journal of Financial and Quantitative Analysis.

• The Long Run: Christophe Spaenjers (2016): "Long term returns to durable assets" in Financial Market History: Reflections on the Past for Investors edited by David Chambers and Elroy Dimson, CFA Institute Research Foundation.

Classroom Behavior

Please refrain from using electronic devices (cell phones, laptops etc.) during class. The Arizona Board of Regents Student Code of Conduct, ABOR Policy 5-308, prohibits threats of physical harm to any member of the University community, including to one’s self. See: http://policy.web.arizona.edu/threatening-behavior-students Special Needs and Accommodations Statement Students who need special accommodation or services should contact the Disability Resources Center, 1224 East Lowell Street, Tucson, AZ 85712, (520) 621-3268, FAX (520) 621-9423, email: uadrc@email.arizona.edu, http://drc.arizona.edu/. You must register and request that the Center of DRC send me official notification of your accommodations needs as soon as possible. Please plan to meet with me by appointment or during office hours to discuss accommodations and how my course requirements and activities may impact your ability to fully participate. The need for accommodations must be documented by the appropriate office. Student Code of Academic Integrity Students are encouraged to share intellectual views and discuss freely the principles and applications of course materials. However, graded work/exercises must be the product of independent effort unless otherwise instructed. Students are expected to adhere to the UA Code of Academic Integrity as described in the UA General Catalog. See: http://deanofstudents.arizona.edu/codeofacademicintegrity/. Subject to Change Statement Information contained in the course syllabus, other than the grade and absence policy, may be subject to change with advance notice, as deemed appropriate by the instructor.

Economics 5XX – Fall 2018 Behavioral Economics

Instructor University of Arizona

Room: TBA Time: TBA Phone: TBA

Office: TBA Office Hours: TBA

Email: TBA

Overview This course is a master’s level course in behavioral economics: the attempt to incorporate insights from psychology into economics. Though behavioral economics is a relatively new field, it has already led to one Nobel Prize, is taught in all major universities, and is beginning to have a huge impact in finance, marketing, management, industrial organization, psychology, political science, and philosophy. In this course, we will study various ways in which (apparent) irrationality influences peoples judgment and decision-making. Behavioral economics is invaluable to anyone with an interest in human behavior. It is particularly relevant to those with an interest in economics, management, marketing, industrial organization, public policy, and the psychology of judgment and decision- making. No previous acquaintance with behavioral economics is necessary. Learning Objectives By the end of this course students will (1) be familiar with the basic ideas of behavioral economics, (2) have developed an original research idea in experimental economics, (3) be aware of how behavioral economics has been used by firms. Course Material The required text is (ISBN: 978-1137512925): Erik Angner. An Course in Behavioral Economics. Palgrave Macmillan, 2016 In addition to the text above, journal articles will be assigned in class. All reading should be done before class, so that students can ask any clarifying questions they may have as we cover the material. Grading

• Problem Sets - 20% There will be a total of 6 problems sets. Each problem set will be assigned at least one week before it is due. Problem sets will count for 20% of your final grade.

• Research Project - 20% Students will be asked to complete a 10 page research project for this course. A two page proposal for the research project will be due in the 12th week of class, after which students will give an in class presentation for feedback from the instructor and other students in the course. A final copy of the research paper will be due on the last day of class. A good research project should propose either an experiment, simulation, or a new theory, and place it in the context of the course. It should clearly specify what the hypotheses are, and why it is interesting, and discuss related research.

• Exams - 60% The midterm exam will count for 20% of your grade and will be held in class. The final exam will count for 40% of your grade, will be cumulative, and will be held during finals week. Course Outline This course will have five main topics, each of which will be divided into a ’standard theory’ section as well as a ’behavioral’ section. The standard theory section will consist of standard explanations of how ’rational’ individuals behave. The behavioral explanations will try to explain situations in which individuals consistently deviate from the predictions of the standard theory. The five course sections are:

• Decision making under certainty • Probability judgement • Decision making under uncertainty • Intertemporal choice • Game Theory

Absence and Class Participation Policy The UAs policy concerning Class Attendance, Participation, and Administrative Drops is available at http://catalog.arizona.edu/policy/class-attendance-participation-and-administrative-drop. The UA policy regarding absences for any sincerely held religious belief, observance or practice will be accommodated where reasonable: http://policy.arizona.edu/human-resources/ religious-accommodation-policy. Absences preapproved by the UA Dean of Students (or deans designee) will be honored. See http://policy.arizona.edu/employmenthuman-resources/attendance. Participating in the course and attending lectures and other course events are vital to the learning process. As such, attendance is required at all lectures and discussion section meetings. Students who miss class due to illness or emergency are required to bring documentation from their health-care provider or other relevant, professional third parties. Failure to submit third-party documentation will result in unexcused absences. No student will be allowed to make up any exam unless they have an excused absence. Classroom Behavior Please refrain from using electronic devices (cell phones, laptops etc.) during class. The Arizona Board of Regents Student Code of Conduct, ABOR Policy 5-308, prohibits threats of physical harm to any member of the University community, including to one’s self. See: http://policy.web.arizona.edu/threatening-behavior-students Special Needs and Accommodations Statement Students who need special accommodation or services should contact the Disability Resources Center, 1224 East Lowell Street, Tucson, AZ 85712, (520) 621-3268, FAX (520) 621-9423, email: uadrc@email.arizona.edu, http://drc.arizona.edu/. You must register and request that the Center of DRC send me official notification of your accommodations needs as soon as possible. Please plan to meet with me by appointment or during office hours to discuss accommodations

and how my course requirements and activities may impact your ability to fully participate. The need for accommodations must be documented by the appropriate office. Student Code of Academic Integrity Students are encouraged to share intellectual views and discuss freely the principles and applications of course materials. However, graded work/exercises must be the product of independent effort unless otherwise instructed. Students are expected to adhere to the UA Code of Academic Integrity as described in the UA General Catalog. See: http://deanofstudents.arizona.edu/codeofacademicintegrity/. Subject to Change Statement Information contained in the course syllabus, other than the grade and absence policy, may be subject to change with advance notice, as deemed appropriate by the instructor.

Economics 573 – Spring 2013 Energy Economics

Instructor University of Arizona

Room: TBA Time: TBA Phone: TBA

Office: TBA Office Hours: TBA

Email: TBA

Overview Energy is the lifeblood of any modern economy and a key to economic development for impoverished people around the world. We will explore the role of energy in the economy and examine the workings of major types of energy markets: coal, oil, natural gas, electricity, etc. This class that builds on material covered in prior microeconomics and econometrics courses. Another important aspect of the course is the role of energy in environmental and climate policy. We will examine the impacts of energy production and consumption and consider public policies involving energy and the environment. The key insights of the course will include the recognition of interdependencies among actors and systems; the need to make explicit what are often tacit assumptions and taken-for-granted habits of thought, behavior and practice; and the unanticipated consequences of public policies. Learning Objectives At the end of this course, a student should be able to (1) develop and improve their problem-solving and analytical skills (2) apply tools from microeconomics and econometrics to energy questions, and (3) gain a basic understanding of the main issues in energy economics. Course Material The textbook for the course is, Energy Economics: Concepts, Issues, Markets and Governance, by Subhes Bhattacharyya, Springer-Verlag London, 2011 I also assign readings from a variety of journal articles and reports. These will be available via D2L and/or online through the UA library. Grading Class meetings will include lecture material presented by the instructor, class discussions of material, in-class experiments, and also discussion of current energy issues. There will be a midterm examination and a final examination. These are individual assignments that are geared toward getting you to read and understand the material we are covering. The course will have quite a bit of background reading and require a solid understanding of microeconomics and statistics. Grading Component Points Percent Midterm Exam 180 36 Problem Sets 100 20 Final Exam 220 44 Total 500 100

Course Outline: TOPIC 1 – Introduction & Application of Competition Model to Energy Markets

Bhattacharyya, Chapters 3-4 Smil, V. "Energy in the Twentieth Century: Resources, Conversions, Costs, Uses and Consequences" Annual Review of Energy and the Environment 25 (2000): 21-51 [D2L]

TOPIC 2 – Regression Analysis, Energy Demand & Forecasting

Bhattacharyya, Chapter 5 Hughes, J., C. Knittel, and D. Sperling, “Evidence of a Shift in the Short-Run Elasticity of Gasoline Demand”, The Energy Journal, vol. 29 (2008) [D2L] P. Reiss and M. White, “Demand and Pricing in Electricity Markets: Evidence from San Diego during California’s Energy Crisis” NBER Working Paper 9986, 2003 http://www.nber.org/papers/w9986

TOPIC 3 – Energy Supply and the Economics of Exhaustible Resources

Bhattacharyya, Chapter 9 Gold, R., “Why peak-oil predictions haven’t come true” Wall Street Journal, Sept. 29, 2014 http://www.wsj.com/articles/why-peak-oil-predictions-haven-t-come-true- 1411937788 Krautkraemer J., and M. Toma, "Fundamental Economics of Depletable Energy Supply" Resources for the Future, Discussion Paper 03-01 (2003) [D2L] Cusick, D. “Asian Demand Forecasts Boom for Coal”, Scientific American, May 14, 2012 http://www.scientificamerican.com/article.cfm?id=asian-demand-forecasts-boom- for-coal

TOPIC 4 – Energy Futures

Energy Information Administration, “Derivatives in Risk Management for Petroleum, Gas and Electricity” (October 2002); up to p. 28; Mazighi, A. "The Efficiency of Natural Gas Futures Markets." OPEC Review (2003) [D2L]

TOPIC 5 – World Oil Markets

Bhattacharyya, Chapter 14

Smith, J. "Inscrutable OPEC? Behavioral Tests of the Cartel Hypothesis." The Energy Journal 25, no. 1 (2005): 51-82. Barsky, R., and L. Killian. "Oil and the Macroeconomy Since the 1970s." Journal of Economic Perspectives 18, no. 4 (2004): 115-134. Council on Foreign Relations. "National Security Consequences of US Oil Dependency." Independent Task Force Report No. 58 (2006). Lynch M. "The Pessimism About Petroleum Resources: Debunking the Hubbert Model (and Hubbert Modelers)." Minerals and Energy - Raw Materials Report 18, no. 1 (2003): 1-18. Watkins, G. "Oil Scarcity: What Have the Past Three Decades Revealed?" Energy Policy 34 (2006): 508-514.

TOPIC 6 – Natural Gas

Bhattacharyya, Chapter 15 Jacoby, H., F. O’Sullivan, and S. Paltseva, “The Influence of Shale Gas on U.S. Energy and Environmental Policy”, Economics of Energy & Environmental Policy, vol. 1 (2012) [D2L] Leitzinger, J., and M. Collette. "A Retrospective Look at Wholesale Gas: Industry Restructuring." Journal of Regulatory Economics 21, no. 1 (2002): 79-101.

TOPIC 7 – Regulation and Reform in the Electricity Industry

Bhattacharyya, Chapter 10 Joskow, P., "Deregulation and Regulatory Reform in the U.S. Electric Power Sector." Chapter 4 in Deregulation of Network Industries: What's Next? Edited by S. Peltzman and C. Whinston. Washington, D.C.: American Enterprise Institute Press, 2000, pp. 1-17. Lyon, T, and N. Wilson, “Capture or contract? The early years of electric utility regulation”, Journal of Regulatory Economics (2012)

TOPIC 8 – Competition and Pricing in the Electricity Industry

Borenstein, S. "The Trouble with Electricity Markets: Understanding California's Restructuring Disaster." Journal of Economic Perspectives 16, no. 1 (2002): 191-211.

Borenstein, S., J. Bushnell, and F. Wolak. "Measuring Market Inefficiencies in California's Restructured Wholesale Electricity Market." The American Economic Review 92, no. 5 (2002): 1376-1405. Borenstein, S. "The Long Run Efficiency of Real-Time Electricity Pricing." The Energy Journal 26, no. 3 (2005): 93-116. Kleit, A. and S. Reynolds, “Opening the Grid: How to Recharge Arizona’s Electricity System for the 21st Century”, Goldwater Institute Policy Report 232 (July 2009) [D2L]

TOPIC 9 – Energy, Environment, and Climate Change

Bhattacharyya, Chapter 23 Stern, N., “Economics, Ethics and Climate Change” (chapter 2), The Economics of Climate Change, Cambridge University Press, 2007 [D2L] Schmalensee, R. and R. Stavins, "The SO2 Allowance Trading System: The Ironic History of a Grand Policy Experiment" Journal of Economic Perspectives 27, no. 1 (2013) Intergovernmental Panel on Climate Change (IPCC). "Climate Change 2013: The Physical Science Basis: Summary for Policymakers" (February 2013) Pizer, M. "The Evolution of a Global Climate Change Agreement." American Economics Association Papers and Proceedings 96, no. 2 (2006): 26-30.

TOPIC 10 – Fuel Economy Standards & Energy Efficiency

Portney, P., and I. Parry. "Policy Watch: The Economics of Fuel Economy Standards." Journal of Economic Perspectives 17, no. 4 (2003): 203-217. Davis, L., A. Fuchs, and P. Gertler, “The Economics of Household Energy Efficiency: Evidence from Mexico’s Cash for Coolers Program” UC Berkeley Working Paper, October 2012. Hausman, J., and P. Joskow. "Evaluating the Costs and Benefits of Appliance Efficiency Standards." The American Economic Review 72, no. 2 (1982): 220-225. Nadel, S. "Appliance and Equipment Efficiency Standards." Annual Review of Energy and the Environment 27 (2002): 159-192.

TOPIC 11 – Renewable Energy, Storage and Nukes

Bhattacharyya, Chapter 11

Joskow, P., “Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies.” American Economic Review Papers and Proceedings. (2011) 101(3): 238-241. Baker, E., M. Fowlie, D. Lemoine, and S. Reynolds, “The Economics of Solar Electricity”, Annual Review of Resource Economics, 5 (2013) pp. 1-16. Davis, Lucas “Prospects for Nuclear Power”, Journal of Economic Perspectives, Winter (2012) Palmer, K., and D. Burtraw. "Cost-Effectiveness of Renewable Electricity Policies." Energy Economics 27 (2005): 873-894.

Classroom Behavior Please refrain from using electronic devices (cell phones, laptops etc.) during class. The Arizona Board of Regents Student Code of Conduct, ABOR Policy 5-308, prohibits threats of physical harm to any member of the University community, including to one’s self. See: http://policy.web.arizona.edu/threatening-behavior-students Special Needs and Accommodations Statement Students who need special accommodation or services should contact the Disability Resources Center, 1224 East Lowell Street, Tucson, AZ 85712, (520) 621-3268, FAX (520) 621-9423, email: uadrc@email.arizona.edu, http://drc.arizona.edu/. You must register and request that the Center of DRC send me official notification of your accommodations needs as soon as possible. Please plan to meet with me by appointment or during office hours to discuss accommodations and how my course requirements and activities may impact your ability to fully participate. The need for accommodations must be documented by the appropriate office. Student Code of Academic Integrity Students are encouraged to share intellectual views and discuss freely the principles and applications of course materials. However, graded work/exercises must be the product of independent effort unless otherwise instructed. Students are expected to adhere to the UA Code of Academic Integrity as described in the UA General Catalog. See: http://deanofstudents.arizona.edu/codeofacademicintegrity/. Subject to Change Statement Information contained in the course syllabus, other than the grade and absence policy, may be subject to change with advance notice, as deemed appropriate by the instructor.

Economics 581 – Fall 2018 Labor Economics

Instructor University of Arizona

Room: TBA Time: TBA Phone: TBA

Office: TBA Office Hours: TBA

Email: TBA

Overview This course is a third-semester elective in the economics Master’s program. The prerequisite background is the first-year Master’s curriculum in economic theory and econometrics. The graded course work will consist of a midterm examination (accounting for 40% of the course grade) and a final exam (60%). Learning Outcomes By the end of this course, students will be able to

• apply microeconomic theory to analyzing the classic topics in labor economics: the supply of labor, the demand for labor, the interaction of supply and demand in determining market equilibrium employment and wages, investment in human capital (such as education and on-the-job training), and the behavior of the labor market over the business cycle

• apply the econometrics taught in the program and extensions thereof to relevant evidence concerning the above topics

• take the combination of theory and evidence from the study of labor markets to instructive policy applications, such as the labor market impact of minimum wage legislation

Course Material The reading in each section of the syllabus below begins with relevant passages from George Borjas, Labor Economics (6th edition). It then goes on to important theoretical and empirical articles, mostly from professional journals. Course Outline I. LABOR SUPPLY A. Static models Borjas (2.1-2.9). Angus Deaton and John Muellbauer, Economics and Consumer Behavior, 1980, sections 4.1, 11.1, and 11.2. H. G. Lewis, “Hours of Work and Hours of Leisure,” Proceedings of the Industrial Relations Research Association, 1957, pp. 196-206.

Jin Young Lee, “The Plateau in U.S. Women’s Labor Force Participation: A Cohort Analysis,” Industrial Relations, January 2014, pp. 46-71.

2

Julie DaVanzo, Dennis N. DeTray, and David H. Greenberg, “The Sensitivity of Male Labor Supply Estimates to Choice of Assumptions,” Review of Economics and Statistics, August 1976, pp. 313-25. Guido W. Imbens, Donald B. Rubin, and Bruce I. Sacerdote, “Estimating the Effect of

Unearned Income on Labor Earnings, Savings, and Consumption: Evidence from a Survey of Lottery Players,” American Economic Review, September 2001, pp. 778-94. Orley Ashenfelter, Kirk Doran, and Bruce Schaller, “A Shred of Credible Evidence on the Long-Run Elasticity of Labour Supply,” Economica, October 2010, pp. 637-50.

B. Dynamic models

Borjas (2.12). Deaton and Muellbauer, Economics and Consumer Behavior, section 12.1. Thomas E. MaCurdy, “An Empirical Model of Labor Supply in a Life-Cycle Setting,” Journal of Political Economy, December 1981, pp. 1059-85. Joseph G. Altonji, “Intertemporal Substitution in Labor Supply: Evidence from Micro Data,” Journal of Political Economy, June 1986 (part 2), pp. S176-215. John Bound, David A. Jaeger, and Regina M. Baker, “Problems with Instrumental Variables Estimation When the Correlation between the Instruments and the Endogenous Explanatory Variable Is Weak,” Journal of the American Statistical Association, June 1995, pp. 443-50. Chul-In Lee, “Finite Sample Bias in IV Estimation of Intertemporal Labor Supply Models: Is the Intertemporal Substitution Elasticity Really Small?” Review of Economics and Statistics, November 2001, pp. 638-46.

Ernst Fehr and Lorenz Goette, “Do Workers Work More If Wages Are High? Evidence from a Randomized Field Experiment,” American Economic Review, March 2007, pp. 298-317. C. Policy applications

Borjas (2.10). Orley Ashenfelter, “The Labor Supply Response of Wage Earners,” in John L. Palmer and Joseph A. Pechman (eds.), Welfare in Rural Areas: The North Carolina-Iowa Income Maintenance Experiment, 1978. Gary Solon, “Work Incentive Effects of Taxing Unemployment Benefits,” Econometrica, March 1985, pp. 295-306.

II. LABOR DEMAND A. Static models Borjas (3.1-3.8).

3

Orley Ashenfelter, “Notes on the Demand for Labor,” unpublished class notes. David Card, “Unexpected Inflation, Real Wages, and Employment Determination in Union Contracts,” American Economic Review, September 1990, pp. 669-88. B. Dynamic models Borjas (3.11). Thomas J. Sargent, “Estimation of Dynamic Labor Demand Schedules under Rational Expectations,” Journal of Political Economy, December 1978, pp. 1009-44. C. Policy application Borjas (3.10). Finis Welch, “Minimum Wage Legislation in the United States,” Economic Inquiry, September 1974, pp. 285-318. Frederic B. Siskind, “Minimum Wage Legislation in the United States: Comment,” Economic Inquiry, January 1977, pp. 135-8, and reply by Welch, pp. 139-42. Charles Brown, Curtis Gilroy, and Andrew Kohen, “Time-Series Evidence of the Effect of the Minimum Wage on Youth Employment and Unemployment,” Journal of Human Resources, Winter 1983, pp. 3-31. Michael Baker, Dwayne Benjamin, and Shuchita Stanger, “The Highs and Lows of the Minimum Wage Effect: A Time-Series Cross-Section Study of the Canadian Law,” Journal of Labor Economics, April 1999, pp. 318-50. Isaac Sorkin, “Are There Long-Run Effects of the Minimum Wage?” Review of Economic Dynamics, April 2015, pp. 306-33. III. MARKET EQUILIBRIUM A. Long-run equilibrium Borjas (3.9, 4.1-4.7, 5.1-5.6). Price V. Fishback and Shawn Everett Kantor, “Did Workers Pay for the Passage of Workers’ Compensation Laws?” Quarterly Journal of Economics, August 1995, pp. 713- 42. Sherwin Rosen, “The Equilibrium Approach to Labor Markets,” NBER Working Paper No. 1165, 1983. Charles Brown, “Equalizing Differences in the Labor Market,” Quarterly Journal of Economics, February 1980, pp. 113-34. Robert Gibbons and Lawrence Katz, “Does Unmeasured Ability Explain Inter-Industry Wage Differentials?” Review of Economic Studies, July 1992, pp. 515-35.

4

Jennifer Roback, “Wages, Rents, and the Quality of Life,” Journal of Political Economy, December 1982, pp. 1257-78. B. Dynamic equilibration Borjas (4.8). William J. Carrington, “The Alaskan Labor Market during the Pipeline Era,” Journal of Political Economy, February 1996, pp. 186-218. Patrick Kline, “Understanding Sectoral Labor Market Dynamics: An Equilibrium Analysis of the Oil and Gas Field Services Industry,” 2008, unpublished manuscript available at http://www.econ.berkeley.edu/~pkline/papers/oil.pdf. IV. INVESTMENT IN HUMAN CAPITAL A. General human capital Borjas (6, 7.6). Deaton and Muellbauer, Economics and Consumer Behavior, section 11.3. Gary S. Becker, “Investment in Human Capital: A Theoretical Analysis,” Journal of Political Economy, October 1962 (supplement), pp. 9-49. Michael Spence, “Job Market Signaling,” Quarterly Journal of Economics, August 1973, pp. 355-74. Jacob Mincer, Schooling, Experience, and Earnings, 1974, especially chapters 1 and 5. David Card, “Earnings, Schooling, and Ability Revisited,” NBER Working Paper No. 4832, 1994. B. Specific human capital, long-term employment relationships, and labor turnover Borjas (6.11, 8.9-8.12, 11.4). Becker, “Investment in Human Capital: A Theoretical Analysis,” pp. 17-25. Robert E. Hall, “The Importance of Lifetime Jobs in the U.S. Economy,” American Economic Review, September 1982, pp. 716-24. Boyan Jovanovic, “Job Matching and the Theory of Turnover,” Journal of Political Economy, October 1979, pp. 972-90. Peter Kuhn, “Wages, Effort, and Incentive Compatibility in Life-Cycle Employment Contracts,” Journal of Labor Economics, January 1986, pp. 28-49. Clive Bull, “The Existence of Self-Enforcing Implicit Contracts,” Quarterly Journal of Economics, February 1987, pp. 147-60. Jonathan Thomas and Tim Worrall, “Self-Enforcing Wage Contracts,” Review of

5

Economic Studies, October 1988, pp. 541-54. Robert E. Hall and Edward P. Lazear, “The Excess Sensitivity of Layoffs and Quits to Demand,” Journal of Labor Economics, April 1984, pp. 233-57. Motty Perry and Gary Solon, “Wage Bargaining, Labor Turnover, and the Business Cycle: A Model with Asymmetric Information,” Journal of Labor Economics, October 1985, pp. 421-33. V. CYCLICAL FLUCTUATIONS IN THE LABOR MARKET A. Empirical regularities Borjas (12.1-12.3).

Michael Elsby, Bart Hobijn, and Aysegul Sahin, “The Labor Market in the Great Recession,” Brookings Papers on Economic Activity, Spring 2010, pp. 1-48. Hilary Hoynes, Douglas L. Miller, and Jessamyn Schaller, “Who Suffers during Recessions?” Journal of Economic Perspectives, April 2012, pp. 27-48. Gary Solon, Robert Barsky, and Jonathan A. Parker, “Measuring the Cyclicality of Real

Wages: How Important Is Composition Bias?” Quarterly Journal of Economics, February 1994, pp. 1-25.

Michael W. L. Elsby, Donggyun Shin, and Gary Solon, “Wage Adjustment in the Great Recession and Other Downturns: Evidence from the United States and Great Britain,” Journal of Labor Economics, January 2016, pp. S249-91.

B. Some theories Borjas (12.4, 12.6-12.8). John Maynard Keynes, The General Theory of Employment, Interest, and Money, 1936, chapter 2.

Robert E. Lucas, Jr., and Leonard A. Rapping, “Real Wages, Employment, and Inflation,” Journal of Political Economy, September/October 1969, pp. 721-54.

Dale T. Mortensen, “Job Search, the Duration of Unemployment, and the Phillips Curve,” American Economic Review, December 1970, pp. 847-62.

Dale T. Mortensen and Christopher A. Pissarides, “Job Creation and Job Destruction in the Theory of Unemployment,” Review of Economic Studies, July 1994, pp. 397-415.

Robert E. Hall, “Employment Fluctuations with Equilibrium Wage Stickiness,” American Economic Review, March 2005, pp. 50-65.

John Kennan, “Private Information, Wage Bargaining and Employment Fluctuations,” Review of Economic Studies, April 2010, pp. 633-64. Andy Snell and Jonathan P. Thomas, “Labor Contracts, Equal Treatment, and Wage-

6

Unemployment Dynamics,” American Economic Journal: Macroeconomics, July 2010, pp. 98-127.

Classroom Behavior Please refrain from using electronic devices (cell phones, laptops etc.) during class. The Arizona Board of Regents Student Code of Conduct, ABOR Policy 5-308, prohibits threats of physical harm to any member of the University community, including to one’s self. See: http://policy.web.arizona.edu/threatening-behavior-students Special Needs and Accommodations Statement Students who need special accommodation or services should contact the Disability Resources Center, 1224 East Lowell Street, Tucson, AZ 85712, (520) 621-3268, FAX (520) 621-9423, email: uadrc@email.arizona.edu, http://drc.arizona.edu/. You must register and request that the Center of DRC send me official notification of your accommodations needs as soon as possible. Please plan to meet with me by appointment or during office hours to discuss accommodations and how my course requirements and activities may impact your ability to fully participate. The need for accommodations must be documented by the appropriate office. Student Code of Academic Integrity Students are encouraged to share intellectual views and discuss freely the principles and applications of course materials. However, graded work/exercises must be the product of independent effort unless otherwise instructed. Students are expected to adhere to the UA Code of Academic Integrity as described in the UA General Catalog. See: http://deanofstudents.arizona.edu/codeofacademicintegrity/. Subject to Change Statement Information contained in the course syllabus, other than the grade and absence policy, may be subject to change with advance notice, as deemed appropriate by the instructor.

43

Appendix D – Financial model

Prepared by: UA Eller College of Management Print date: 5/16/17

FinancialSummary-3YearHiringPlanMasterofScienceinEconometrics&QuantitativeEconomics

Revised: 5/16/17

ProForma ProForma ProForma ProForma ProFormaYear1 Year2 Year3 Year4 Year52019 2020 2021 2022 2023

Enrollment 25 30 35 45 55

GrossRevenue 904,867 1,548,769 1,834,552 2,308,935 2,882,797

LessRegentSetAside(RSA) (145,202) (248,628) (294,624) (370,956) (463,338)

LessSupportCenterExpenseRecovery(SCER) (94,046) (160,957) (190,643) (239,922) (299,529)

LessStrategicInvestmentAllocation(SIA) (26,588) (65,007) (76,996) (96,899) (120,973)

NetAcademicYearRCMRevenue-SCH - 107,761 181,726 215,933 272,616

NetAcademicYearRCMRevenue-Major - 323,282 545,178 647,800 817,847

NetAcademicYearRCMRevenue-ProgramFees 207,987 347,273 408,556 510,695 633,262

LessUnrealizedNetRevenue (10,399) (38,916) (56,773) (68,721) (86,186)

InstitionalStrategicInvestmentRequested 461,559 420,808 219,902 - -

OtherEllerCollegeSourcesforStartup 115,390 105,202 54,975 - -

TotalSourcesofFundstoEller 774,536 1,265,410 1,353,564 1,305,706 1,637,538

UsesofFundsCourseInstruction 624,440 1,108,180 1,158,300 1,111,023 1,214,435

TASalary 22,328 22,425 45,045 45,240 45,435

TATuitionRemission 11,601 11,717 23,667 23,904 24,143

ProgramCoordinator 67,000 69,010 71,550 73,575 76,160

Advertising 37,500 37,500 37,500 37,500 37,500

ProgramMaterials 3,600 3,600 3,600 3,600 3,600

StudentEvents 400 450 500 550 600

ASConExpenses 7,669 12,529 13,402 12,954 14,019

TotalUsesofFunds 774,537 1,265,410 1,353,564 1,308,346 1,415,892

Netproceeds(deficit) (0) (0) (0) (2,640) 221,647RateofReturn 0% 0% 0% 0% 14%

Notes:Assumesenrollmentsaremadeupof65%non-residentsand35%residentsSourcesreflectthatthetuition(SCHandmajor)revenueisnotreceivedbyElleruntilthefollowingyear,whileprogramfeesarereceivedinthesameyearUnrealizednetrevenuecalculatesa5%bufferforunpaidbalances,tuitiondiscounting,etc.Courseinstructionreflectsa3yearhiringplan:2TTEinyear1,2TTEinyear2,and1TTEinyear3Includesanannual3%increaseonfacultyandstaffsalaries

SourcesofFundstoEller(ReflectsnetrevenueinyearitisRECEIVED)

SourcesofFundstoUA(ReflectsnetrevenueinyearitisEARNED)

FiscalYear

44

Appendix E – Economics Master’s program rankings

Economics–Master’sProgramU.S.Rankings

Source:CollegeChoice,“BestMastersinEconomics2016”

1. JohnsHopkinsUniversity2. DukeUniversity3. BostonUniversity4. NewYorkUniversity5. TuftsUniversity6. UniversityofSouthernCalifornia7. UniversityofTexas,Austin8. GeorgetownUniversity9. UniversityofIllinois,UrbanaChampaign10. UniversityofCalifornia,LosAngeles11. WashingtonUniversity,St.Louis12. UniversityofMichigan13. TulaneUniversity14. UniversityofWisconsin15. VanderbiltUniversity16. UniversityofOregon17. UniversityofMissouri18. PurdueUniversity19. TheNewSchool20. TempleUniversity21. FloridaStateUniversity22. MarquetteUniversity23. RutgersUniversity24. GeorgiaInstituteofTechnology25. UniversityofCalifornia,SantaBarbara26. UniversityofAlabama27. OldDominionUniversity28. OregonStateUniversity29. UniversityofCalifornia,SantaCruz30. MiamiUniversityOhio31. NorthCarolinaStateUniversity32. TexasA&MUniversity33. UniversityofColorado,Denver34. WashingtonStateUniversity35. ClemsonUniversity36. GeorgeMasonUniversity37. UniversityofArkansas38. AuburnUniversity

39. SyracuseUniversity40. BaylorUniversity41. FordhamUniversity42. GeorgeWashingtonUniversity43. SouthernMethodistUniversity44. IndianaUniversity45. FloridaAtlanticUniversity46. DePaulUniversity47. SouthernIllinoisUniversityCarbondale48. IowaStateUniversity49. GeorgiaSouthernUniversity50. GeorgiaStateUniversity

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Appendix F – AREC letter

304 McClelland Park, 650 N. Park Ave. P.O. Box 210078 Tucson, AZ 85721-0078 Tel: (520) 621-2421 Fax: (520) 621-6250 http://ag.arizona.edu/arec/

Department of Agricultural and Resource Economics College of Agriculture and Life Sciences

M E M O R A N D U M

DATE: May 26, 2017 TO: Gail Burd, Senior Vice Provost, Academic Affairs Pam Coonan, Executive Director, Academic / Curricular Affairs Lisa Ordoñez, Vice Dean, Eller College of Management Mike Staten, Associate Dean, CALS Andreas Blume, Department Head, Economics FROM: Gary D. Thompson, Professor and Department Head Agricultural & Resource Economics SUBJECT: Response to April 21, 2017 Letter Per your request dated April 21, we would like to reaffirm our desire not to block your proposed master of science program in Econometrics and Quantitative Economics. Further, we wish to declare our intention to cooperate with you in the following areas: • Joint marketing of our respective programs.

• Share information about applicants who could be more suitable for the other program.

• Collaborate in identifying appropriate elective courses across departments.

We trust this memorandum indicates our willingness to cooperate and collaborate where appropriate in recruitment, curriculum, and placement.