Economics NEWS.pdf by suchufp


									                                    Economics N E W S
Fall 2010                    Editor: A. Colin Cameron – Department of Economics                              Page 1
The Department of Economics has seen quite a few               lowered national and international department rankings
changes over the past year.                                    based on publications in the top journals.
Ann Stevens will be the new department chair,                  We are currently facing diminished resources, with
replacing Greg Clark who has served admirably as chair         fewer faculty and more students. This problem is
for the past three years. Ann had already scheduled            especially acute in social science departments that are
sabbatical leave for this academic year, so Rob Feenstra       already under-resourced given the many students they
has generously volunteered to be interim chair in Fall         service. In particular, one-third of upper division
and Winter quarters, with Ann taking over full time in         undergraduate credit hours across the entire UCD
Spring 2011.                                                   campus are in classes taught in the Division of Social
                                                               Sciences. Last year Economics alone graduated a record
The department lost five faculty members last academic
                                                               number of 480 majors, and a record 12,211 students
year. Mitali Das (econometrics) accepted a research
                                                               took undergraduate classes in economics. On the
position at the International Monetary Fund in
                                                               research side there is concern about the downsizing of
Washington, DC. Guido Kuersteiner (econometrics) is
                                                               the Institute of Governmental Affairs, which organizes
now a Full Professor at Georgetown University. Joonsuk
                                                               and co-sponsors many seminars and conferences and
Lee (Industrial organization) is a Visiting Assistant
                                                               has provided staff support for research grants.
Professor at University of Southern California. Steve
Sheffrin left in Fall 2009 for Tulane University - a profile   For academic year 2010-11 the department, with a few
of Steve was given in the Fall 2009 Newsletter. And Jay        exceptions, is maintaining its full range of
Helms (public economics) has retired – a profile of Jay is     undergraduate and graduate classes, albeit with
given later in this newsletter. We have no new incoming        enlarged class sizes. In Fall 2010, thirteen of our upper
faculty this year as we did not recruit last year. The         division classes have ceilings of 150-200 students and
recent losses will be partially alleviated by this coming      ten have ceilings of 75 students. Adding in the four
year’s recruitment to fill two faculty positions.              larger lower division classes, at most 20% of students in
                                                               an economics undergraduate class will be in a class of
There has also been a major reorganization of our staff,
                                                               75 or fewer students. We are maintaining our many
away from solely supporting our department to being
                                                               seminar      series.
part of larger groupings within the Division of Social
                                                               And we continue
Sciences. These changes are detailed in the Staff News
                                                               to receive outside
section of this newsletter.
Like many state universities, U.C.-Davis has been              research grants to
adjusting to a large reduction in direct financial support     support some of
from the state government. Long-term responses are             our research. This
currently being developed for the U.C. system (see             supplements the
ucfuture) and for U.C.-Davis (see ucdinitiatives).             50% of our UCD
Streamlining university administration at higher levels        appointments that
and bringing in additional resources to the university         is for time devoted to research. And, on a lighter note,
would be helpful. But to what extent will proposed             recently-planted roses (pictured) are thriving in the
changes trickle down to the department? For example,           formerly bare large planter area outside the
if we admit more students paying high out-of-state fees        department entrance.
- will economics benefit directly? Currently 12% of
                                                               Donor support, such as that discussed on page three
economics majors, versus 4% campus-wide, are
                                                               from the Levine Family Fund and from Steve and Anjali
international students. This raises $3 million annually in
                                                               Sheffrin and for the various department awards, is
out-of-state fees to the UC system that does not appear
                                                               especially welcome. We hope that the donor base may
to benefit the department. And there is concern that
                                                               enlarge as more of the graduates in our program that
greater emphasis on more applied economics research
                                                               began fifty years ago reach an age where giving
to increase grant funding may be at the expense of
                                                               becomes less challenging (see gifts).
Fall 2009                                  UC Davis Economics N E W S                                          Page 2
Jay Helms Retires                                            The paper “Retirement Wealth Across Cohorts: The Role
                                                             of Earnings Inequality and Pension Changes” shows that
Jay Helms retired in June 2010 following a career at
                                                             the increased inequality in earnings of the past few
UCD that began in 1978 – he was our longest serving
                                                             decades is also being reflected in increased inequality of
faculty member.
                                                             wealth (excluding Social Security) at the point of
Jay’s research spanned both microeconomic theory and
                                                             retirement. The paper “Why are Recessions Good for
empirical analysis.
                                                             Your Health? Understanding Pro-cyclical Mortality”
His       most-cited
                                                             (with Marianne Page, Doug Miller and Mateusz Filipski)
work, with 322 cites
                                                             shows that the surprising result that mortality rates
in Google Scholar,
                                                             increase in good economic times is not due to changes
was a 1985 paper in
                                                             in individuals’ work status or in health behaviors, two
The Review of
                                                             commonly posited explanations for this puzzling result.
Economics        and
                                                             Ann’s research has been cited several times in the
Statistics on “The
                                                             media in the past year, especially her work on the
Effect of State and
                                                             consequences of job loss (see NY Times and NY Times
Local Taxes on
                                                             and WallStreetJournal).
Economic Growth:
A Time Series-Cross
Section Approach”.
Some of his earliest                                         Joaquim Silvestre awarded the 2009
work was in health economics, and he returned to this        Narcís Monturiol Medal Scientific and
area more recently with papers such as a 2008 paper in
Medical Care on "Tamoxifen for Breast Cancer Risk            Technological Medal by the Catalan
Reduction: Impact of Alternative Approaches to               Government
Quality-of-Life Adjustment on Cost Effectiveness             Joaquim Silvestre was awarded the Narcís Monturiol
Analysis," joint work with faculty in the UCDMC Center       Medal (see medal website). This highly selective award
for Healthcare Policy and Research.                          for contributions to universities and research is granted
Jay was an extraordinary teacher, teaching courses in                                    annually by the Ministry of
undergraduate and graduate public finance, as well as                                    Innovation, Universities and
the large capacity Principles of Microeconomics                                          Enterprise          of       the
(Economics 1A). He won the Department of Economics                                       government of Catalonia
Tom Mayer Distinguished Teaching Award twice, in                                         (population 7.5 million).
1996 and 2003, and is the only two-time winner of this                                   Joaquim was one of thirteen
award.                                                                                   recipients from all areas of
In retirement Jay, with wife Terry, will no doubt                                        science, mostly physical
continue to go Ashland to attend plays at the Oregon                                     sciences. Joaquim has had a
Shakespeare Festival, and continue hiking in California                                  long       affiliation      with
and Europe.                                                                              Catalonia,             including
                                                                                         employment at Universitat
                                                                                         Autonoma de Barcelona
Ann Stevens is new department chair                          before coming to Davis, encouraging many Catalan
Ann Stevens will be the new department chair,                students to do Ph.D.’s in economics at Davis, and
replacing Greg Clark who has served admirably as chair       authoring a microeconomics text in Catalan.
for the past three years. Ann takes over in Spring 2011,     Joaquim is a Fellow of the Econometric Society,
while Rob Feenstra serves as interim chair in Fall and       reflecting his research contributions in public economics
Winter quarters when Ann is on sabbatical leave. Ann         and microeconomic theory. His most recent research
came to UCD from Yale University in 2003, and served         (with John Roemer and Humberto Llavador) on
as Graduate Program Chair from 2005 to 2009.                 “International justice when future worlds are uncertain”
Ann’s recent research includes a paper on “Short-run         and “A Dynamic Analysis of Human Welfare in a
Effects of Parental Job Loss on Children’s Academic          Warming Planet” uses economic theory to provide
Achievement,” (with graduate student Jessamyn                guidance on issues such as how a planner maximizing
Schaller) that finds that parental job loss increases the    social welfare under uncertainty should react to the
probability of a child repeating a grade by 15 percent.
Fall 2009                                 UC Davis Economics N E W S                                       Page 3
possible disappearance of the human species in the          "Health Reform in the U.S.: How We Got Here and
future due to global warming.                               Where We Are Going". The Sheffrin lecture was made
                                                            possible by a gift from Steven M. and Anjali Y. Sheffrin,
New Steven M. Sheffrin Award for                            in addition to receiving support from the Levine Family
                                                            Fund and the Herbert A. Young Society.
Contributions to Graduate Education                         Chris Meissner has taken over as chair of the
The department added a new teaching award in the            committee this year and has already lined up an
past year, the Steven M. Sheffrin Award for                 impressive list of speakers: Matthew Ridley (author of
Contributions to Graduate Education. This award was         “The Rational Optimist”); Hal Varian (Chief economist of
generously funded by Steve Sheffrin, a former long-         Google), Emmanuel Saez (Professor of Economics at UC
time department member and leader and Dean of               Berkeley and winner of the prestigious John Bates Clark
Social Sciences who recently left UCD for a position at     Medal in 2009 for the best U.S. economist under 40
Tulane University. The Tom Mayer Distinguished              years old), Peter Lindert (UCD Economics Professor
Teaching Award is typically awarded for contributions to    emeritus); Claudia Goldin (Professor of Economics at
undergraduate teaching. The new award complements           Harvard.
this by focusing on graduate teaching.                      Events in the Levine Family series will take place in the
Joaquim Silvestre is the inaugural winner of this award.    evenings throughout 2010-11 and we welcome the
For many years Joaquim has taught the key Ph.D. first-      general public. Stay tuned for more information.
year first-quarter course in Microeconomic Theory
(200A), and the immediately preceding Summer
Mathematics Boot Camp course. The new award has
                                                            Conferences and seminars
                                                            The department organized many conferences and
given the department the opportunity to acknowledge
                                                            seminars in the past year.
his excellent graduate teaching.
                                                            Marianne Page, director of the UCD Economic, Justice
                                                            and Society Program (EJS), organized the annual two-
Levine Family Fund lecture series                           day EJS Spring conference in May 2010, along with Kim
continues                                                   Shauman and Greg Clark. This year’s topic theme was
The Levine Family Fund, created by the Jay (B.A.            "Economic and Social Mobility: Historical and
Economics '84) and Tammy Levine Family Foundation,          Contemporary".
has generously provided support that enables lecture        Greg Clark, director of the All-U.C. Group in Economic
series that promote debate and interest in Economic         History co-organized several conferences throughout
issues in the Davis community.                              the year at other U.C. campuses, in addition to the EJS
Wing Woo organized the following speakers in                spring conference.
academic year 2009-10.                                      Burkhard Schipper organized a workshop on
Phillip Swagel (U.S. Treasury) spoke on “The Financial      Neuroeconomics and Endocrinological Economics at
Crisis: An Inside View”.                                    UCD in November 2009, the world’s first workshop in
Minxin Pei (Claremont                                       endocrinological economics that was supported by the
McKenna University) and                                     Levine Family Fund.
Wei Zhang (Cambridge                                        Alan Taylor, director of the UCD Center for the
University)     spoke     on                                Evolution of the Global Economy (CEGE), organized the
"China's     Return:     The                                fourth annual CEGE conference. This year’s topic was
Changing Global Political                                   “Financial Shocks and the Real Economy”.
and Economic Landscape".                                    Steve Sheffrin, director of the UCD Center for State and
Laurence Kotlikoff (Boston                                  Local Taxation and former UCD Economics Professor,
University) talked on "The                                  organized the twentieth annual week-long Summer Tax
Key to Preventing Banking                                   Institute, held in June 2010.
Crises is Limited Purpose                                   Several faculty members have additionally organized
Banking".                                                   international conferences in other parts of the world,
Finally Jonathan Gruber                                     most notably in Europe. Some of these are detailed in
(M.I.T.), a key architect of                                the individual faculty entries below.
the 2006 Massachusetts                                      This Fall the department will be organizing about thirty
health insurance reforms,                                   seminars in the Economic History, Economics Theory,
gave the inaugural Sheffrin Lecture in Public Policy on     Macroeconomics / International Economics, Public
                                                            Finance / Labor Economics and Economy, Justice and
Fall 2009                                  UC Davis Economics N E W S                                      Page 4
Society seminar series. In Spring 2011 we will               Scott’s research (with James West) on quality of
additionally have seminar series in Econometrics,            teaching, published in the Journal of Political Economy,
Economic Theory and Industrial Organization (see             was cited in the September 14 Chronicle of Higher
department seminars and EJS seminars).                       Education story on “Why Teaching is Not Priority No.1”.
                                                             See Chronicle story. The New Republic magazine blog
                                                             by Zubin Jelveh (The Stash) cited as one of the Year’s
                                                             Biggest Ideas in Economics a related paper (with
Department            Water         Cooler        lives      Marianne Page and James West) that shows that a
another day                                                  professor’s gender has a “powerful effect” on the
                            The department water             achievement of women.
                            cooler is no longer              The New York Times Freakonomics blog featured a
                            endangered. The water            recent paper by Scott Carrell (joint with Mark Hoestra
                            cooler provides water that       and James West), “Does Drinking Impair College
                            is pleasanter in taste and       Performance?” shows that for those of legal drinking
                            texture than the hard            age        the
                            university    water,    and      consumption
                            provides hot water as well       of     alcohol
                            as      cold    water,     a     leads       to
                            convenience especially to        significant
                            some tea drinkers. In these      reductions in
                            challenging    times    the      academic
                            associated      expenditure      performance
was viewed as frivolous, just like expenditure on office     (roughly     a
telephones.                                                  0.1      lower
But thanks to the                                            GPA) and that the effect is largest for the highest-
financial contributions of                                   performing student. The study exploits data from the
many          department                                     Air Force Academy, where laws against under-age
faculty,     staff     and                                   drinking are strictly enforced, permitting comparison of
students the necessary                                       those either side of age 21 (see NY Times).
funding      has     been                                    Research by Christopher Knittel that found that the
obtained, at least for this                                  recent federal “Cash for Clunkers” program reduces
year. The free rider                                         CO2 emissions by an expensive $237-$365 per ton was
problem is temporarily                                       cited in the Wall Street Journal and the New York Times.
at bay, but we will                                          Research by Chris Knittel and Victor Stango (UCD GSM)
consider giving naming                                       showed that the Tiger Woods scandal had an
rights to a generous                                         appreciable negative effect on the stock market value of
donor.                                                       companies whose products he endorsed. This research
                                                             received much media attention – TVEyes, a media
                                                             tracking service, found 168 TV and radio broadcast
Faculty and Graduate                         Student         reports of this study in the week following December 28
                                                             2009 with estimated total audience reach of 9.9 million
Research in the Media                                        viewers (see article summary).
A September 13 article in the Los Angeles Times on            Chris Knittel was also quoted in a Wall Street Journal
“The ‘contagion’ of social networks” cites research by       article on the recommendation of the California
Scott Carrell that examined the spread of fitness habits     Economic and Allocation Advisory Committee panel (of
in students at the Air Force Academy and found that the      which Chris is a member) to return greenhouse-gas
probability of a student being classified “unfit” tripled    emissions to consumers via tax cuts or dividend checks.
once half the student’s social network fell out of shape.    And on January 19 Chris’s voice could be heard on
Carrell sees an opportunity in the results. “If you make     NPR’s Morning Edition explaining externalities: “If we
that ‘unfit’ person more healthy,” he says, “that            worry about climate change, if we worry about even
suggests you will also increase the fitness levels of        more local pollution such as smog, if we worry about
everyone else in the group.” (see LA Times).                 the fact that our military is larger, the more oil we
                                                             consume, all of those costs are not in that $3 a gallon.
Fall 2009                                   UC Davis Economics N E W S                                        Page 5
So, from that perspective, $3 a gallon is actually a pretty   for suppliers to Wal-Mart increasing suppliers’
good deal.”                                                   productivity. The Wall Street Journal blog notes that
A feature article on Immigration to America (“A Ponzi         while this is good for China and for global economic
scheme that works”) in The Economist included the             output, an increase in consumption in China facilitated
following quote regarding the positive effect of              by entry of U.S. firms such as Wal-Mart may not lead to
immigrants: “Gianmarco Ottaviano of the University of         the desired reduction in the size of the large trade
Bologna and Giovanni Peri of the University of                deficit that the U.S. has with China.
California, Davis, find that nearly 90% of native-born        The PBS television show Nightly Business Report had an
American workers actually enjoy higher wages because          extensive interview on the economy of Russia with Ivan
of immigration.”                                              Tchakarov, who received his PhD from the department
A Federal Reserve Bank of San Francisco Economic              in 2003 and is now chief economist for Russia at BofA /
Letter by Oscar Jorda, joint work with graduate student       Merrill Lynch. See transcript and video.
Travis Berge, was widely cited in the media (Reuters,
Bloomberg, Wall Street Journal, ….) following its release     More Faculty News
August 9. The research uses an improved forecasting
                                                              The faculty news items are often on matters other than
method to forecast that in June 2010 the probability of
                                                              teaching and research papers produced. Faculty
another recession by June 2012 is between 0.2 and 0.5.
                                                              publications are listed under their individual entries at
See paper. Related research by Oscar and Travis finds
that the economic recovery in the U.S. began in July
                                                              Giacomo Bonanno organized two conferences this year:
2009, though the NBER business cycle dating committee
                                                              the ninth LOFT conference, held in Toulouse (France),
                                                              July 2010 (LOFT2010) and the three-day Workshop on
                                                              Information processing, rational beliefs and social
                                                              interaction held in Banff (Canada), August 2010
                                                              (workshop). Both events were interdisciplinary and
                                                              brought together researchers from economics, game
                                                              theory, philosophy, logic, computer science, artificial
                                                              intelligence and linguistics.
                                                              Giacomo is now in his fifth year as Editor of Economics
                                                              and Philosophy and is currently co-editing three special
is yet to make its determination.                             issues of journals (Journal of Philosophical Logic,
Research by Oscar Jorda and Alan Taylor was the               International Journal of Game Theory and Journal of
featured research in the Economics Focus section of the       Applied Non-Classical Logics). He is also Associate Editor
December 10 2010 issue of the Economist Magazine;             of three other journals (Knowledge, Rationality and
see Economist article. The original research paper on         Action, Bulletin of Economic Research, and Journal of
“The Carry Trade and Fundamentals: Nothing to Fear            Logic and Computation).
But FEER Itself” suggests a way to make a steady profit       Colin Cameron was the instructor for the 7th Summer
in the carry trade where investors borrow low-yielding        School, NIPE, Universidade do Minho, Braga, Portugal,
currencies and lend (invest in) high-yielding currencies.     and for the Summer School, Central Bank of Austria,
This trade is big – around $1 trillion was estimated to be    Vienna, Austria. While in Europe he also presented
in the yen carry trade in 2007.                               seminar papers at Universidade do Minho and
Ann Steven’s research, discussed earlier and some                                                        University of
coauthored with Marianne Page and Jessamyn                                                               Zurich.    For
Schaller, has been cited several times in the media in                                                   part of Fall
the past year, including the New York Times (see NY                                                      2010 Colin will
Times on effect of job loss and NY Times) and the Wall                                                   be on unpaid
Street Journal (see WSJ).                                                                                leave, on a
Deborah Swenson’s NBER working paper on the effects                                                           mountain
of large retailer expansion on Chinese trade, joint with                                                 adventure in
Keith Head and Ran Jing, was noted by the Wall Street                                                    Nepal.     The
Journal (see WSJ). The research (see NBER paper) finds                                                   photo is of
that expansion of U.S. retailers such as Wal-Mart in                                                     Colin on a
China leads to increased exports by Chinese firms,            popular training hike overlooking nearby Lake
though channels such as more stringent requirements           Berryessa.
Fall 2009                                 UC Davis Economics N E W S                                      Page 6
Colin completed a Revised Edition of the book               Chris Knittel’s paper “Absence of Value: An Analysis of
“Microeconometrics Using Stata” (with Pravin Trivedi).      Investment Allocation Decisions by Institutional Plan
Colin will be an Associate editor for the new Journal of    Sponsors” (with Scott Stewart, John Neumann and
Econometric Methods, as will Oscar Jorda.                   Jeffrey Heisler) won the Graham and Dodd Scroll Award
Scott Carrell was awarded an NSF Grant of $250,951 for      of Excellence for outstanding article published in the
“Network Formation and Peer Effects at the USAFA”           Financial Analyst Journal. Chris is a member of Governor
(with Nicholas Christakis, Guido Imbens, and James          Schwarzenegger’s Economic and Allocation Advisory
West). Scott passed his fitness test (push-ups, sit-ups,    Committee to the California E.P.A. that gave
1.5 mile run) for the Air Force Reserves; ran a half        recommendations on how to distribute or auction
marathon                                                    emissions allowances (worth $12 billion annually)
with Dave                                                   associated with California’s greenhouse gas cap and
Rapson last                                                 trade program. Chris was awarded the Department of
Fall; and is                                                Economics Tom Mayer Distinguished Teaching Award.
now                                                         Chris Meissner, with collaborators David Jacks (Davis
coaching                                                    PhD) and Dennis Novy, organized a conference in
two Little                                                  Venice, Italy, on international trade. Chris presented a
are      not
evaluated using value-added methods).
Greg Clark has moved on from department chair to
chair of the All-U.C. Group in Economic History. The
group, based here at UCD at the Institute for
Governmental Affairs, has five year funding of $450,000
from the U.C. Office of the President to promote
research in economic history across all 10 UC
campuses. Greg was the keynote speaker for the
Associação Portuguesa de História Económica e Social        paper at Chatham House London on “Systemic Changes
(APHES) at their annual conference in Porto in October,     in the International Monetary System and the Need for
2009. Translations of his book, A Farewell to Alms          Coordination, Cooperation and Enforcement”, a book
(2007), appeared in Chinese, Italian, Japanese, Korean,     chapter reprinted in China’s leading financial magazine
and Portuguese. He secured an NSF grant for $130,000        Caijing. He also gave presentations in Houston, IMT
                                                            Lucca Italy and the German Bundesbank. His research
for 2010-2012 for a study of social mobility over 800
years.                                                      on historical aspects of the international economy was
Thanasis Geromichalois has joined forces with his           published in the Journal of Economic History,
colleague Ina Simonovska writing a paper on Asset           Explorations in Economic History, Journal of
Home Bias. Thanasis and Ina have integrated techniques      Development Economics, Journal of International
from their different fields (Macro and International        Money and Finance, and Vox Eu. Chris will serve for
Trade, respectively) to propose a novel explanation of      one year as director of the
one of the prominent paradoxes of International             UCD      Center     for    the
Macroeconomics. This work was presented in August at        Evolution of the Global
the Summer Workshop on Money, Banking, Payments             Economy (CEGE) while our
                                                            colleague Professor Alan
and Finance organized by the Chicago FED. Thanasis has
also completed a series of research papers focusing on      Taylor is on leave for the
the welfare properties of Search and Matching models        year, organizing the annual
of the labor market. This academic year Thanasis            CEGE conference in May of
teaching will include graduate Monetary Theory (235B)       2010.
and first-year graduate Macro (200E).                       Doug Miller’s biggest news
                                                            is the birth of son Cole, now
                                                            approaching a year old.
Fall 2009                                 UC Davis Economics N E W S                                      Page 7
                                                             at seminars at UC San Diego and the University of
Marianne Page’s on “Sex and Science: How Professor          Oregon. He presented his work on unawareness at the
Gender Perpetuates the Gender Gap”, with Scott              conference on Logic and the Foundations of Game and
Carrell, was published in the Quarterly Journal of          Decision Theory in Toulouse and the Max Planck
Economics. Marianne continued as director of the EJS        Institute for Mathematics in the Sciences, Leipzig. His
program, organizing seminars and the Spring EJS             new experimental results on "Sex Hormones and
7Conference. And Marianne was awarded a $143,000            Competitive Bidding" were presented at the Workshop
research grant “The Effects of Alcohol Policies on Fetal    on Gender Differences in Competitiveness and Risk
Health and Children’s Development.”                         Taking in Barcelona. He served on the program
Martine Quinzii visited the Centre D’Economie de la         committees of the conference on Logic and the
Sorbonne in Paris in June, and attended several             Foundations of Game and Decision Theory in Toulouse
conferences throughout the year. She will be                and the workshop on Logic for Resource Bounded
sponsoring two visitors to the department in Spring         Agents in Lyon. Burkhard recently became a faculty
2011.                                                       member of the UC Davis Graduate Group in Applied
Dave Rapson continues research to explore ways in           Mathematics.
which economics can inform energy policy and climate        Ina Simonovska was appointed as a Faculty Research
change mitigation efforts. His several new projects         Fellow at the National Bureau of Economic Research.
include a novel and large ($1 million) randomized field     Ann Stevens, new department chair beginning Spring
trial that will contrast the response to price and non-     2011, has benefitted in this recession from renewed
price interventions to encourage conservation. In the       interest in her work on job loss and employment
meantime, concern for being pigeonholed as the              stability. This work has been featured several times in
department intellectual has led him to undertake an         the New York Times and Wall Street Journal.
array of testosterone-rich hobbies. He pumps iron with      Deborah Swenson enjoyed meeting and teaching
colleagues, Scott Carrell and Chris Knittel, feigns an      professionals from 16 countries who attended the U.C.
interest in talking sports whenever possible, and has       Davis Law program on the Global Trading System. Her
upgraded his newly-purchased bachelor pad on the            NBER working paper on the effects of large retailer
edge of Aggie Village with dark wood, slate, and steel.     expansion on Chinese trade, joint with Keith Head and
Pictured on page six are Dave, Scott and Scott’s wife       Ran Jing, was noted by the Wall Street Journal (see
Susie after completing a half-marathon.                     WSJ).
Pontus Rendahl is on leave in Fall and Spring at            Alan Taylor spent the summer of 2010 on the Houblon-
University of Paris, spending winter quarter back in        Norman/George Fellowship at the Bank of England.
Davis.                                                      The department informal lunch gatherings continued
Kadee Russ will be a visiting scholar at the Deutsche       through summer. Here Dave Rapson, Deborah Swenson,
Bundesbank for parts of this year and the next to study     Marianne Page, Paul Bergin Greg Clark, Ann Stevens and
lending and financial frictions in the global economy.      Chris Knittel suggest solutions to some of the world’s
Kevin Salyer continued his theoretical analysis of the      problems.
effects that time-varying risk has on lending and the
housing market (with Gabriel Lee, University of
Regensburg, and Victor Dorofeenko, Institute for
Advanced Studies in Vienna), work funded in part by the
Austrian Central Bank. He’ll extend this research while
on sabbatical for the 2010-11 academic year. Kevin also
found time to complete his first Boston marathon in
April and, in June, finished the inaugural Central Coast
1000km bicycle ride in 65 hours. The latter is a prelude
for his second attempt at the famed 1200km Paris-
Brest-Paris bike ride in 2011.
Burkhard Schipper presented his new work on imitation
in games at the 2010 Econometric Society World
Congress (held every five years) in Shanghai, the
Midwest Economic Theory Conference in Evanston, and
Fall 2009                                   UC Davis Economics N E W S                                      Page 8
Emeriti News                                                  Chi-Hung (Charles) Liao from National Taiwan
                                                              University, South Korea, University of North Carolina,
Alan Olmstead and Paul Rhode (B.A. graduate from
                                                              and Yale University.
UCD now at University of Michigan) were awarded the
                                                              Jake Losh from University of California – Davis.
Alice Hanson Jones Prize for their book, Creating
                                                              John Luidens from Calvin College.
Abundance: Biological Innovation and American
                                                              Mitsuhiro Osada from University of Tokyo, Japan.
Agricultural Development, published by Cambridge
                                                              Shinhyung Park from Ewha Woman’s University, South
University Press in 2008. The prize, awarded by the
Economic History Association, recognizes the best book
                                                              Angsoka (Oka) Paundralingga from Duke University
published in the past two years on North American
                                                              (originally from Indonesia).
economic history. Alan has been elected to a five year
                                                              Kevin Shih from Claremont McKenna College.
term to the NBER Board of Directors.
                                                              Hyungsik (Chris) Shin from Pennsylvania State
                                                              University – College Park and Boston University
In Memoriam                                                   (originally from South Korea).
Former department member William Moss passed                  Chi-Yuan Tsai from National Taiwan University, Taiwan.
away in September 2009. He was at UCD for half a              Qiao (Doris) Wang from University of California - San
dozen years in the 1970’s, teaching Urban Economics,          Diego (originally from PRC).
Industrial Organization, Statistics and Survey Sampling.      Kevin Williams from Claremont McKenna College.
He was a member of 8 Ph.D. committees and chaired             Zhe Yang from Peking University, PRC.
two. Subsequently he continued to pursue his research         Lijuan Yin from Peking University, PRC, and University
interests in restructuring of energy and water markets        of Hong Kong.
as a consultant, most recently as a principal investigator
for the Brattle group who named their mentoring
awards after him. The American Statistical Association
                                                              Graduate Students on the Job Market
                                                              At this early stage of the job seeking process, sixteen
named him a member of their Committee on Energy
                                                              Ph.D. students intend to go on the job market.
Statistics for the period 2000-2002.
                                                              Will Ambrosini, “Task knowledge, task premia, and
Former Ph.D. graduate William Rosen, passed away in
                                                              wage inequality,” Advisor: Giovanni Peri.
May 2008 at the age of 57. His PhD on "Short-run
                                                              Travis Berge, “New empirical methods for classifying
Residential Electricity Demand: A Policy Oriented Look"
                                                              and forecasting cyclical phenomena,” Advisors: Alan
as chaired by William Moss. He became a teacher of
                                                              Taylor and Oscar Jorda.
economics and statistics in the College of Human
                                                              Ronald Carpio, “Maturity transformation and fractional-
Ecology's Department of Policy Analysis and
                                                              reserve banking,” Advisor: Martine Quinzii.
Management at Cornell University. Bill Rosen served as
                                                              Chia-wen Chen, “Estimating the foreclosure effects of
director of the Capitol Semester in Albany program and
                                                              exclusive dealing from an entry game,” Advisor: Chris
was a recipient of such prestigious awards as the New
York State Chancellor's Award for Excellence in Teaching
                                                              Yi Chen, “Long-run news and international
(2006), Merrill Presidential Scholar Outstanding
                                                              macroeconomic puzzles,” Advisor: Paul Bergin.
Educator (2004, 2005) and HEAA/KON Honorary Society
                                                              Changho Choi, “The effect of news shocks in the
Award for Advising and Service (2001).
                                                              presence of informational heterogeneity and credit
                                                              constraints,” Advisor: Oscar Jorda.
New Graduate Students                                         Rowena Gray, “U.S. labor markets in historical
At the Fall Graduate Student reception held at Putah          perspective,” Advisor: Alan Taylor.
Creek Lodge the department welcomed twenty                    Marco Hernandez, “Nontraded goods and the real
incoming Ph.D. students.                                      exchange rate: The case of Mexico and U.S.,” Advisor:
Massimo Anelli from Bocconi University, Italy.                Paul Bergin.
Gregory Barr from University of Notre Dame                    Amanda Kimball, “Green companies: The impact of
Yi Chen from Peking University, PRC, and University of        women, education and network status,” Advisors:
Hong Kong.                                                    Burkhard Schipper and Martine Quinzii.
Andrew Foote from Lewis and Clark College.                    Jason Lee, “Essays on the good roads market,” Advisor:
Qi Han from Peking University, PRC.                           Alan Olmstead.
Jae Wook Jung from Yonsei University, South Korea.            Jeremy Moulton, “Chiseling a notch out of the next
Yo Han Jung from Seoul National University, South             generation's assets: The effect of the social security
Fall 2009                                 UC Davis Economics N E W S                                       Page 9
amendments of 1972 and 1977 on intergenerational            The Department of Economics 2009 Distinguished
transfer behavior,” Advisor: Ann Stevens.                   Teaching Assistant Award was awarded to Shaofeng
Jed Richardson, “Accountability incentives and              Xu.
academic achievement:         The benefit of setting        Tom Blake was awarded a UCD Institute of
standards low,” Advisors: Scott Carrell and Marianne        Transportation Studies student travel award and
Page.                                                       presented “Air Freight Demand and Passenger Prices in
Charles Stoecker, “Long run effects of in-utero             the Face of Weight Capacity Constraints" paper on the
temperature exposure”, Advisor: Hilary Hoynes.              economics of air cargo at the U. C. Transportation
Anson Soderbery, “Essays Exploring the Effects of Firm      Center's annual conference at U.C. Irvine.
Behavior on International Outcomes,” Advisor: Rob           Doug Campbell presented a paper at the Eastern
Feenstra.                                                   Economic Association Conference in Philadelphia and at
Abhijit Talathi, “Assessing the impact of the interstate    the Analyst Institute. He held a research Fellowship at
system on employment density in the U.S.,” Advisor:         the Democratic National Committee and is currently
Giovanni Peri                                               working as a Modeling Analyst at the DNC, on loan from
Greg Wright, “Revisiting the employment impact of off       the President's Council of Economic Advisers (CEA) for
shoring,” Advisor: Giovanni Peri.                           the November 2010 midterm elections.
                                                            Gabriel Mathy presented the paper “International
Recent Placements                                           Business Cycle Transmission in the Interwar Period”
                                                            (with Chris Meissner) at the All-University of California
Despite the tight economy last year, the eight Ph.D.
                                                            Economic History Conference in March 2010.
students on the job market were all successful,
                                                            Seema Santiga presented papers at the annual Pacific
including five placements as tenure-track Assistant
                                                            Conference for Development at University of Southern
                                                            California and the 85th annual conference of the
Shih-Wei Chao, Assistant Professor, National Chengchi
                                                            Western Economic Association International in
University, Taiwan.
                                                            Portland, Oregon.
Yanping Chong, Assistant Professor, Winona State
                                                            Jessamyn Schaller received a UCD and Humanities
University, Minnesota.
                                                            Graduate Research Award.
Ling Feng, Assistant Professor, Shanghai University of
                                                            Liugang Sheng received a 2010-11 George and Dorothy
Finance and Economics, PRC.
                                                            Zolk Fellowship, and a 2010-11UCD and Humanities
Jeff Graham, Economics Consultant, OnPoint Analytics
                                                            Graduate Research Award. He presented the paper "Did
Inc., Emeryville, California. His job market paper on
                                                            China diversify its reserves?" in the annual joint
strategic real options is forthcoming in the Journal of
                                                            BIS/ECB/World Bank Public Investors Conference at the
Economic Dynamics and Control.
                                                            World Bank in Washington DC. This summer he was a
Meixin Guo, Assistant Professor, Tsinghua University,
                                                            visiting scholar at Chinese University of Hong Kong.
                                                            Anson Soderbery presented the paper “The
Weijun Hu, Economist, China International Capital
                                                            Competitive Effects of Heterogeneous Firms Facing
Corporation, Hong Kong.
                                                            Capacity Constraints Under International Trade” at the
Zhiyuan Li, Assistant Professor, Shanghai University of
                                                            Midwest International Economics Group conference at
Finance and Economics, PRC.
                                                            Northwestern University and will also present it at the
Nick Sanders, Postdoctoral Scholar, Stanford Institute
                                                            Empirical Investigations of International Trade
for Economic Policy Research (SIEPR), Stanford
                                                            conference at University of Chicago. He was awarded a
University, California.
                                                            research grant from the UCD Office of Graduate Studies
                                                            at UCD.
Graduate Student News                                       Charles Stoecker presented "Drawn into Violence:
The Department of Economics 2009 Raymond J.                 Evidence on What Makes a Criminal from the Vietnam
Beaumont Memorial Award was awarded to Rowena               Draft Lotteries" (with former UCD student Jason Lindo,
Grey. This prize is awarded annually to an outstanding      now at University of Oregon) at the San Francisco
student in the Ph.D. program who both succeeds              Federal Reserve Bank Summer Applied Micro
academically and helps make the department a better         Conference. He received a UCD and Humanities
place.                                                      Graduate Research Award.
Fall 2009                                 UC Davis Economics N E W S                                      Page 10
Record number of undergraduate                              Tran, and Erika W. Zucca received Department Citation
                                                            Awards in recognition of outstanding Economic
majors in economics                                         Undergraduate Accomplishment.
A record 480 degrees of B.A. with major in economics        The Michael Alan Anthony Fund, a monetary award
were awarded by U.C. Davis last year. There are now         provided in memory of Michael Alan Anthony who
1,137 undergraduate economics majors currently              received his Bachelor of Arts in Economics in 1989, is
enrolled. And a record 12,211 students took                 given to a deserving undergraduate student. It
undergraduate classes in economics in 2009-10. The          alternates between majors in the Department of
biggest increase has been in upper division course          Economics and History and was given to a History
enrollment. Over the past fourteen years this has           student in 2010.
increased at a compound rate of eight percent per year,     Cameron Brown and Jason Ronzani received Sweetland
from 2,664 in 1995-96 to 8,526 students in 2009-10.         scholarships, awarded through the Undergraduate
These great increases mainly reflect a switch to            Scholarship application. The scholarship is funded by
economics, and other social sciences, rather than the       Tim Sweetland (Economics ‘82) who values his
growth in overall student numbers over the past fifteen     educational experiences and would like to support
years.                                                      students majoring in his home department. Mr.
The budget challenges compound existing challenges          Sweetland believes the future of California’s economy is
for social science departments that are already under-      dependent on the success of our students.
resourced given the many students they service. In          Derek Ryan-Costa DeGroot, Early S. Elias, David W.
particular, one-third of upper division undergraduate       Green, Hingzhi Gu, Lindsey M. Hack, Justin Huang,
credit hours across the entire UCD campus are in classes    Brent J. Jensen, Robert S. Lange, Jr., George Li, Yuki
taught in the Division of Social Sciences. Last year        Nakagawa, Arata Oto, Victoria E. Phillips, Steven M.
Economics alone graduated a record number of 480            Pitchford, Daniel A. Stevens, David C. Stowitts, Y-Vu
majors, and additionally we teach many students in the      Van, Phon Vo, and Wing Sum Wong were elected to
International Relations major which has no home             membership in Phi Beta Kappa, the oldest and most
department. On the research side there is concern           prestigious national academic honor society. Kappa
about the downsizing of the Institute of Governmental       Chapter recognizes by election as Members in Course
Affairs, which organizes and co-sponsors many seminars      juniors and seniors who have compiled outstanding
and conferences and provides staff support for research     academic records in a curriculum including the
grants. The biggest increase has been in upper division     humanities, natural sciences, and social sciences.
course enrollment which was as low as 2,664 in 1995-96      Election and initiation take place annually in Spring.
and has since more than tripled to 8,526 students in
2009-10, a compounded rate of increase of eight
percent each year.
                                                            Emmanuel Frankel’s book, “Serenity Economics” has
                                                            been published. Aside from being a book on economic
News from our Undergraduates                                growth and achievement, “Serenity Economics” teaches
Hoa Gabriele Tran received the Distinguished                an appreciation for micro and macro by introducing the
Undergraduate Student Award. This award is presented        notion that each individual is an economy that interacts
by the Faculty to a student who has been cited for          with other economies (other people and the
outstanding achievement in Economics.                       community) constrained by economic "laws" that do
Katlyn Ann Calia, Mark Y. Colas, Christopher R.             not discriminate.
Johnson, Kirill A. Levashov, Jean-Laurent Pelissier         In addition to Emmanuel, our lecturers this academic
graduated in 2010 (through end Spring quarter) with         year will include Bagher Modjtahedi (continuing
Highest Honors, and Wing Sum Wong graduated with            lecturer), John Parman, Janine Wilson, Kristen Van
High Honors. These awards are granted for the best          Gaasbeck, Mark Siegler, David Lang and Farshid
performance by Economics majors who have completed          Mojaver.
the Economics Honors Program.                               Graduate students Changho Choi, Jeremy Moulton,
Nicholas J. Gentry, Melissa Anne Paloma Go, Patrick R.      Anson Soderbery, Paul Gaggl, T.J. McCarthy, Will
Godwin-Painter, Robert Steven Lange, Kirill A.              Ambrosini and Jessamyn Schaller will be Associate
Levashov, Philip M. Litchenstein, Philip S. Liu, Yuki       Instructors, each teaching one course this year and
Nakagawa, Jean-Laurent Pelissier, Steven M. Pitchford,      gaining valuable teaching experience.
Gregory K. Reimer, Hoa Gabriele Tran, Thao Stephanie
Fall 2009                                   UC Davis Economics N E W S                                       Page 11
Visitors                                                      Pictured are Kathy Miner, Monica Fischer, Jessica Lewis,
                                                              and Rachel Hale releasing some of the tension at a
Academic visitors to the department this year include
                                                              much-needed staff retreat.
the following.
John Ries from the Sauder School of Business at
University of British Columbia will spend his sabbatical
leave year visiting the department, sponsored by Rob
Feenstra. His research is in international trade.
Filipe Martins da Rocha from the Graduate School of
Economics and Getulio Vargas Foundation in Rio de
Janeiro will visit in Spring quarter 2011, sponsored by
Martine Quinzii. His research is in general equilibrium
theory, and he will also teach a graduate course while
visiting.                                                     Diane Branam has been promoted to supervisor of not
Yiannis Vailakis from the School of Business and              only the economics undergraduate and graduate
Economics, University of Exeter, will visit in Spring         program, but the history department undergraduate
quarter 2011, sponsored by Martine Quinzii. His               and graduate programs as well.
research is in microeconomic theory, including general        Janine Carlson is now a Senior Support Analyst, Service
equilibrium theory.                                           Desk Team, DSS IT Service Center.
Portia Yin a Ph.D. student at the School of Finance,          Marilyn Dexter remains as the Economics Graduate
Central University of Finance and Economics, Beijing,         Program coordinator.
will visit in Fall and Winter quarters, sponsored by Wing     Monica Fischer has been promoted to the Business
Woo.                                                          Officer for both Economics and History departments
                                                              and will provide backup assistance to Military Science as
Staff News                                                    well.
Kristine Augustin left in January 2010, after working         Rachelle Hale remains the Undergraduate Advisor in
here for seven years, to commence studies in the              Economics.
Nursing program at Napa Valley College.                       Jessica Lewis has been promoted to Academic
We welcome Jessica Lewis, who previously worked in            Personnel Coordinator for the Economics faculty.
the Department of History. She received her B.A. in           Joe Lee remains in the Department of Economics
Economics and Sociology here at UC Davis and most             Undergraduate Office.
recently received her M.B.A. in finance from California       Kathy Miner is now the Chief Administrative Officer for
State University - Sacramento.                                the DSS Blue cluster.
Many other staff members have seen substantial                Scott Dyer is now Lead Application Developer for the
changes in their duties and responsibilities, due to a        Development Team, DSS IT Service Center.
major restructuring of all staff in the Division of Social
Sciences that has taken place over the last few months.       This newsletter is posted at
Many staff members are now part of a larger group, the
Blue Cluster, which provides service to the Departments       News updates are at
of Economics, History and Military Science. And our           We thank all contributors to this newsletter, especially
computing support staff is now based in the Division of       Burkhard Schipper for very timely copyediting.
Social Sciences IT Service Center.                            For any comments on the current issue of UCDavis
The department faculty appreciate the changed and             Economics NEWS or news items for the next issue or
increased workloads of our staff, and are trying to aid       our     web    page,     contact     Colin     Cameron,
the challenging transition. We also hope that       , or University of California,
administrative changes at higher levels of campus lead        Davis, Department of Economics, One Shields Avenue,
to a more streamlined system that reduces the                 Davis, CA 95616, USA.
workload of our staff.                                        We especially welcome news from our alumni.

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