Economics and Society

How do economists address the challenge of allocating scarce resources to best serve the unlimited needs and wants of those in society? The first half of this course introduces the idea that markets can work efficiently to coordinate economic activity thereby addressing the problem of scarcity. However, when markets fail to work efficiently, an argument for government intervention in the market arises as a potential solution to better serve the needs of those in society. These concepts of scarcity, efficiency, and ultimately, trade-offs are then applied to the analysis of international financial markets in the second half of the semester where the drivers of manias, bubbles, and crises are explored.

The course focuses on the application of predictive and causal statistical inference for decision making across a wide range of scenarios and contexts. The first part of the course focuses on parametric and non-parametric predictive modeling (regression, cross-validation, bootstrapping, random forests, etc.). The second part of the course focuses on causal inference in randomized control trials and observational studies (statistical matching, synthetic control methods, encouragement design/instrument variables, regression discontinuity design, etc.). Technical aspects of the course focus on computational approaches and real-world challenges, drawing cases from the life sciences, public policy and political science, education, and business. This course also emphasizes the importance of being able to articulate one’s findings effectively and tailor methodology and policy/decision-relevant recommendations for different audiences. Note: CS130 may be substituted for a tutorial in CS/NS/SS and can count like a cross-listed tutorial for double majors in SS, NS, or CS (any pairwise combination). This course was previously CS112.

SS144 equips students with a broad set of analytical tools that economists use to study behavior from the macro to micro level. We begin with a broad overview of why some economies grow faster than others, and use mathematical tools to illustrate growth dynamics. We then transition to macroeconomic and microeconomic theory by first analyzing macroeconomic models and then decisions made at the firm and individual level by exploring tools such as utility and profit maximization. From there we explore the field of game theory and apply tools such as Nash equilibrium and analyze games in strategic forms. We next progress to the field of international trade and assess trade agreements while applying tools such as graphical analysis and regression outcomes. The next unit focuses on understanding empirical tests of predictions from the models we studied thus far. We end the class with an introduction to behavioral economics and learn to analyze various factors that impact behavior in real-world economic decision making.

Learn how to use core econometric and statistical methods to construct and validate economic and social models. Students will learn methods to conduct and critique empirical studies in economics as well as other social sciences. We apply these techniques to answer causal questions such as: What environmental policy in Europe has been most effective in reducing pollution? Are celebrities involved in international development actually helping alleviate poverty? Do cigarette taxes reduce smoking? Do drunk driving laws actually reduce traffic deaths? Are international sanctions effective in correcting rulers’ behavior? Quantitative approaches used to answer such questions include multiple regression, matching, differences in differences, regression discontinuity, and instrumental variables. The aim of this course is to make you better critique causal studies and more comfortable when performing your own causal study.

Examine important challenges facing both developing and developed economies. Explore the development of societies through the analysis of access to education and healthcare as well as sustainable mechanisms for economic growth. Identify the socio-economic impacts of rural to urban migration and technological progress while exploring the reasons for income inequality throughout the world. Generate and critique policies designed to address specific economic issues within an effective institutional and political framework. Note: This course qualifies as part of the Interdisciplinary Minor in Sustainability.