08 October 2015 12:01PM The Departments of Economics and Political Science have received approval from Duke University’s Board of Trustees to offer a new joint master’s degree program in analytical political economy (MAPE), and applications are now being accepted for the 2016-2017 academic year. MAPE represents an interdisciplinary field of growing scholarly interest in which students will gain modeling skills in game theory, formal economics, and political science. Courses in both sponsoring departments are deeply rooted… read more about New Master’s Program in Analytical Political Economy to Begin Fall 2016 »
07 October 2015 3:01PM Malcolm Gillis, the sixth president of Rice University, died Oct. 4 at age 74. A University Professor, the Ervin Kenneth Zingler Professor of Economics and a professor of management, Gillis served as president from 1993 to 2004, one of Rice’s most active periods. He was a well-known economist who consulted with numerous countries on economic public policy. “Malcolm served Rice as its president for 11 years with extraordinary distinction and dedication, raising the university to new heights,” President… read more about In Memoriam: Malcolm Gillis »
02 October 2015 2:07PM Abstract The use of race in college admissions is one of the most contentious issues in U.S. higher education. We survey the literature on the impact of racial preferences in college admissions on both minority and majority students. With regard to minority students, particular attention is paid to the scope of preferences as well as how preferences affect graduation, choice of major, and labor market earnings. We also examine how schools respond to bans on racial preferences and the… read more about Affirmative Action in Undergraduate Education »
02 October 2015 2:30PM Abstract The elimination of interest from financial transactions has been a salient goal of Islamization movements around the world. Its proponents have had to balance this objective, which they claim to draw from Islamic law (Sharia), against consumer demand for convenient products. In general they have opted to accommodate consumer demand, but surreptitiously, using legal ruses to disguise their compromises. Turkey's experience with credit cards offers a revealing case of the… read more about Between Consumer Demand and Islamic Law: The Evolution of Islamic Credit Cards in Turkey »
02 October 2015 1:52PM Abstract We examine gaps between minorities and whites in education and labor market outcomes, controlling for many covariates including maternal race. Identification comes from different reported races within the family. Estimates show two distinct patterns. First, there are no significant differences in outcomes between black and white males with white mothers. Second, large differences persist between these groups and black males with black mothers. The patterns are insensitive to… read more about Exploring the Racial Divide in Education and the Labor Market through Evidence from Interracial Families »
02 October 2015 1:45PM Abstract We measure the impact of a drastic new technology for producing steel—the minimill—on industry-wide productivity in the US steel industry, using unique plant-level data between 1963 and 2002. The sharp increase in the industry's productivity is linked to this new technology through two distinct mechanisms: (i) the mere displacement of the older technology (vertically integrated producers) was responsible for a third of the increase in the industry's productivity, and (ii)… read more about Reallocation and Technology: Evidence from the U.S. Steel Industry »
02 October 2015 3:34PM Abstract This paper assesses the importance of trade policy reforms in South Korea, as well as the General Agreement on Tariffs and Trade (GATT) tariff reductions, in explaining Korea’s growth miracle. We develop a model of neoclassical growth and trade in which lower tariffs lead to increased gross domestic product (GDP) per worker via comparative advantage and specialization, and capital accumulation. We calibrate the model and simulate the tariff reductions that occurred between… read more about How Much of South Korea's Growth Miracle Can Be Explained by Trade Policy? »
02 October 2015 2:21PM Abstract When excess returns are used to estimate linear stochastic discount factor (SDF) models, researchers often adopt a normalization of the SDF that sets its mean to 1, or one that sets its intercept to 1. These normalizations are often treated as equivalent, but they are subtly different both in population, and in finite samples. Standard asymptotic inference relies on rank conditions that differ across the two normalizations, and which can fail to differing degrees. I first… read more about Identification and Inference in Linear Stochastic Discount Factor Models With Excess Returns »
30 September 2015 12:45PM Due to increasing demand for affordable housing, about 20 million Americans live in mobile homes even though trailer park management might be anything but fair. Here’s how it works: In a community like this, tenants typically own the manufactured structures that are their homes but not the land under it, and once they’re dropped off, mobile homes are not very mobile because it costs about $3,000 to relocate. The low-to-moderate income tenants are often subjected to increasing… read more about Trailer Park Economics: A System Failing the Tenants »
16 September 2015 9:15AM How can governments combat unemployment during recessions? Should the Federal Reserve raise interest rates? Almost everyone seems to have an opinion about economic issues such as these, but understanding how best to resolve them requires more insight. New professor Andrea Lanteri aspires to answer these types of questions with macroeconomic models. He has joined the department from the London School of Economics, where he recently earned his Ph.D. in economics. His specialty is designing, solving,… read more about Lanteri Brings Macroeconomic Expertise to Duke »
09 September 2015 9:39AM Duke placed eighth in the latest annual rankings by U.S. News & World Report magazine of national universities that offer doctoral degrees. Last year Duke was ranked in a tie for eighth. In its latest rankings, released overnight on Tuesday, U.S. News also placed Duke seventh in a category called "Great Schools at Great Prices," for which the magazine compares a school's academic quality with the net cost of attendance for a student who receives the average level of need-based financial aid. In… read more about Duke 8th in Latest U.S. News Ranking »
03 September 2015 10:46AM Lagging behind in launching new medicines means a much smaller market share for pharmaceutical companies — even if they spend just as much on advertising, according to new research from Duke University's Fuqua School of Business. Drug makers know they can lose millions if they're not first to the market with a new drug. Professor David Ridley's work can now tell them how much they stand to lose. "We're giving them a formula," Ridley said. "You can plug in your own numbers for your… read more about In the Media: New Research Predicts Market Share for Drug Makers »
31 August 2015 1:12PM Since the Great Recession began in 2007, global economic recovery has been sluggish, and the downturn has led many macroeconomists to rethink their models. One such macroeconomist is new professor Kyle Jurado, who specializes in the intersection of financial markets and the real economy. He has joined the Department of Economics from Columbia University, where he recently earned a doctorate in economics. As an undergraduate, the Florida native spent the summers of 2007 and 2008… read more about New Professor Studies the Role of Financial Markets in Developed Economies »
13 August 2015 10:49AM It’s beginning to look a lot like a new school year. Starting Monday, Duke Economics will be swarming with students as the department hosts a week of orientation events for the largest incoming class of master's students yet. In the three programs combined — M.A. in economics, M.S. in economics and computation (MSEC), and M.S. in statistical and economic modeling (MSEM) — there are 99 matriculates, up from 82 in the previous academic year. The applicant pools across all programs were extremely… read more about Orientation Week Begins Monday for Incoming Master’s Students »
06 August 2015 12:57PM In the span of just four years, Turkey’s GDP growth has slowed significantly, from a high of 9.2 percent in 2010 to a lackluster 2.9 percent last year. Experts believe the country “needs a boost in political confidence in order to grow,” according to CNBC, but that may be difficult given the current political landscape. Commenting on the recent turnover in Turkey’s parliament, Turkish-American Professor Timur Kuran, an economist who specializes in the region, said many Turks are worried that… read more about In the Media: Turkey: A Former Emerging Market Star Stumbles »
03 August 2015 3:00PM Seven years after the 2008 housing market crash that precipitated the recent financial crisis, there are signs that the economy is improving — thanks, in part, to a growing housing market, reports personal finance social network WalletHub. WalletHub's new report evaluates the health of the housing market in 25 big cities across the United States and features expert commentary from Professor Charles Becker. Becker, whose research specialties include urban and real estate markets, offered… read more about Commentary: The Health of the Housing Market in 25 Big Cities »
29 July 2015 3:05PM First-year economics Ph.D. students arrived on campus Monday for orientation and math camp. The incoming class of doctoral candidates comprises 20 students — five women and 15 men — from Australia, Brazil, China, Colombia, Hungary, Italy, Lithuania, Russia, South Korea, Vietnam, Taiwan, and the United States. In total, the department received 734 applications for 2015 admission. “Our applicant pool was very competitive, and we were only able to make offers of admission to about 10 percent of applicants… read more about Orientation, Math Camp Begins for First-Year Economics Ph.D. Students »
23 July 2015 9:37AM This summer rising senior Abby Snyder is learning firsthand how to find solutions to real world problems for the world’s largest retailer. Snyder, who is majoring in economics, is one of 330 interns representing 112 U.S. colleges and universities at Walmart’s world headquarters in Bentonville, Ark. "Our goal is to improve the work experience of associates in the stores, so we're working to implement new technologies and put those in the hands of store managers and associates ... I've been able to… read more about In the Media: Walmart Interns Tackle Real World Problems, Find Solutions »
06 July 2015 9:52AM Summers at Duke University traditionally are a time for change, from construction and renovations to the arrival of new faculty and students. Among the many changes taking place specifically in Social Sciences is the appointment of a new chair. Professor A. Craig Burnside’s five-year term began on June 1, 2015, and he officially has taken up residence in Suite 213. Burnside is well prepared for the role. Since joining Duke Economics in 2004, the macroeconomist has been an active member of the faculty,… read more about Craig Burnside Named Department Chair »
02 July 2015 12:03PM Professor Bruce Caldwell was the keynote speaker at the second annual Hoover Institution Library & Archives Workshop on Political Economy at Stanford University on June 24. Caldwell’s lecture focused on the life of Austrian Nobel Prize-winning economist and social theorist Friedrich Hayek — from his upbringing in Austria to his seminal work at the London School of Economics — as well as the major thematic trends of his work. The week-long event brought together an interdisciplinary group of scholars… read more about New & Noteworthy: Caldwell Delivers Keynote Address at Hoover Institution Workshop »
30 June 2015 3:06PM The 15 undergraduate students in this summer’s Duke in London Finance program will supplement textbooks with The New York Times and The Wall Street Journal and do much of their learning in the conference rooms, offices, and trading floors of multinational financial institutions. In the process, they will learn the ins and outs of the financial markets and the quantitative fundamentals of finance, all under the guidance of two of the biggest Duke fans around. The semester begins with three… read more about Finance Students Find Duke Ties in London »
24 June 2015 12:23PM As Professor E. Roy Weintraub will tell you, it was there for anyone interested in economics to see. For all the talk about the University of Chicago and the so-called Chicago school of economics, it was another department — the economics department at MIT — that had really set the course for the discipline in the second half of the 20th century. “Paul Samuelson. Robert Solow. The Nobel Prizes. The John Bates Clark medalists. The members of the Council of Economic Advisers. When I looked at the… read more about Weintraub Examines "MIT Phenomenon" in HOPE Journal »
22 June 2015 9:27AM Why are some people rich and others poor? Why are some places affluent while others not? These are the questions that first motivated Professor William Darity, Jr. to study economics. “As an undergraduate, I decided to study economics because I assumed it was the discipline that would offer explanations for understanding poverty and inequality. I realized quickly that I was very dissatisfied with the standard account economics offered for poverty and inequality, and, with the hubris of youth, I decided… read more about Faculty Spotlight: William Darity, Jr. on Stratification Economics and Leadership at Duke and Beyond »
18 June 2015 2:41PM Courtesy of the Duke Department of Computer Science. The Duke University Department of Computer Science and members of the broader Duke community mourn the loss of Donald J. Rose. Don served Duke for 31 years, including seven years as department chair. Prior to joining, he worked at University of Denver, Harvard University, Vanderbilt University and Bell Labs. Technical Contributions Don worked in numerical linear algebra, focusing especially on sparse matrices, an area in which… read more about In Memoriam: Don Rose »
15 June 2015 3:50PM The number of abortions performed each year has been declining steadily since the early 1990s, and the procedure is becoming increasingly rare in the United States, reports FiveThirtyEight. According to Professor Elizabeth Ananat, this is because fewer women are getting pregnant. Ananat, an associate professor of economics who studies the economics of fertility, says new data contradicts the notion that more women are rejecting abortion and choosing to stay pregnant. "If women's attitudes were really… read more about In the Media: The Abortion Rate Is Falling Because Fewer Women Are Getting Pregnant »
11 June 2015 1:25PM The Senate last month passed President Barack Obama’s Trade Promotion Authority (TPA) package, which gives the president the right to negotiate trade agreements with foreign countries. The bill now awaits its fate in the House of Representatives. In an op-ed for The News & Observer, Professor Michelle Connolly, former chief economist of the Federal Communications Commission, says the desire by some House members to introduce binding currency rules is “misguided.” Read the full piece on The… read more about In the Media: Many Reasons to Renew Obama Fast-Track Authority on Trade »
09 June 2015 4:13PM The Duke Financial Economics Center’s (DFE) Leadership Award was created to recognize seniors who have made a significant impact while participating in DFE and other finance-related activities at Duke. They represent qualities that made them leaders on campus and will serve them well in their post-Duke lives: initiative, collegiality, professionalism, and a passion for learning. The 2015 awardees are Tony Hernandez and Max Lipscomb. Both have dedicated generous amounts of time to working with… read more about Hernandez, Lipscomb Win 2015 DFE Leadership Award »
05 June 2015 11:17AM Each month, the National Bureau of Economic Research (NBER) selects a handful of working papers to feature in its Digest. Professional journalists are assigned to summarize the papers for a non-technical audience. The research being done by Duke Economics Professors Atila Abdulkadiroglu and Richard Newell in their respective areas of expertise has been highlighted in the June issue of the publication. Read the full June NBER Digest online. Atila Abdulkadiroglu: The Welfare Effects of… read more about New & Noteworthy: Faculty Research Featured in NBER Digest »
01 June 2015 2:19PM Twenty-two students from around the world arrived yesterday for the Center for the History of Political Economy’s (CHOPE) sixth annual Summer Institute. The program, which runs from May 31 through June 12, is designed for graduate students in economics programs, and aims to prepare them to integrate ideas from the history of economics into their courses. CHOPE Director Bruce Caldwell said the students have a full schedule for the next two weeks. Five award-winning faculty members will lead 18 different… read more about 6th Annual Center for the History of Political Economy Summer Institute Begins »
18 May 2015 10:35AM Duke Economics Ph.D. student Aaron Kolb has had his solo research published in the May issue of the Journal of Economic Theory (JET). Kolb, a current fifth year, authored a paper on “Optimal Entry Timing,” which applies game theory to market entry outcomes by using state-of-the-art dynamic continuous-time modeling techniques. “It is very rare that one of our students publishes a solo-authored paper in a major field journal like JET, years before graduating,” said Professor Attila Ambrus, Kolb’s primary… read more about Ph.D. Student Aaron Kolb Publishes Solo-Authored Paper »