Introduction
“Economics, after all, is not all that aesthetic a field. It’s supposed to be a practical field. And if what you’re doing has no relevance whatsoever to actual policy, then… you should question that” –Ben Bernanke, 2019.
This is a crash course in economic problems and public policy; it will move very quickly! Our goal is to build on economic principles and develop an understanding of how modern economist think about problems in the public policy space. This course is designed as a seminar style class, it will require regular and thoughtful participation. At the conclusion of this course, students should be able to read and distill modern applied economic research. This will be accomplished through regular presentation and discussion of economic papers.
In addition to the readings below, students may find Universal Economics by Alchian and Allen (2018) helpful for general microeconomic questions; Macroeconomics by Mankiw (2016) helpful for general macroeconomic questions; and, Causal Inference: The Mixtape by Cunning (2018) and Introductory Econometrics: A modern approach by Wooldridge (2018) helpful for econometric related questions.
Last updated: Summer 2019.
Homelessness
It’s not just about shelter; it’s an economic issue often associated with market failures, income inequality, and the cost of living, impacting productivity and social cohesion. Here we explore what is the economic cost of homelessness and the effectiveness of economic policies designed to reduce it.
Readings
- “The impact of federal homelessness funding on homelessness” by Lucas (2017)
- “Reducing and Preventing Homelessness: A Review of the Evidence and Charting a Re- search Agenda1” by Evans, Phillips, and Ruffini (2019)
Voting
It’s the mechanism through which citizens express their preferences, shaping economic policies and the allocation of resources.
Readings
- “An Economic Theory of Political Action in a Democracy” by Downs (1957)
- “Strict ID Laws Don’t Stop Voters: Evidence from a US Nationwide Panel, 2008–2016” by Cantoni and Pons (2019)
Opioid Crises
A public health issue with economic dimensions, it drains productivity, increases healthcare costs, and reflects the societal cost of addiction. Given demand curves slope downward, what can be done?
Readings
- “The Effects of Naloxone Access Laws on Opioid Abuse, Mortality, and Crime” by Doleac and Mukherjee (2018)
- “Macroeconomic conditions and opioid abuse” by Hollingsworth, Ruhm, and Simon (2017)
Minimum Wage
A popular tool for income redistribution, who does it help and who does it hurt? What are the economic implications of raising the minimum wage?
Readings
- “Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania” by Card and Krueger (1994)
- “Declining Teen Employment: Minimum Wages, Other Explanations, and Implications for Human Capital Investment” by Neumark and Shupe (2018)
- “Do lower minimum wages for young workers raise their employment? Evidence from a Danish discontinuity” by Kreiner, Reck, and Skov (2017)
- “The effect of minimum wages on low-wage jobs: Evidence from the United States using a bunching estimator” by Cengiz et al. (2019)
Gun Control
An issue of public safety, we explore the causes and consequences of gun control.
Readings
- “Guns and Violence: The Enduring Impact of Crack Cocaine Markets on Young Black Males” by Evans, Garthwaite, and Moore (2018)
- “Right-to-Carry Laws and Violent Crime: A Comprehensive Assessment Using Panel Data and a State-Level Synthetic Control Analysis” by Donohue, Aneja, and Weber (2019)
Crime and Police
Crime disrupts economic activity and growth, while policing and criminal justice represent significant public expenditures. What are the economic implications of crime and policing?
Readings
- “More COPS, less crime” by Mello (2019)
- “The unintended consequences of “ban the box”: Statistical discrimination and employment outcomes when criminal histories are hidden” by Doleac and Hansen (2018)
- “Lead and juvenile delinquency: New evidence from linked birth, school and juvenile detention records” by Aizer and Currie (2017)
- “Encouraging desistance from crime” by Doleac (2019)
Minority Homes and Lending
Economic mobility for minority groups is low, and the housing market may be a factor. What are the economic implications of minority homeownership and lending?
Readings
- “The Vulnerability of Minority Homeowners in the Housing Boom and Bust: Corrigendum” by Bayer, Ferreira, and Ross (2017)
- “Do Minorities Pay More for Mortgages?” by Bhutta and Hizmo (2019)
Value of Life
A controversial but necessary concept in economics, used to make decisions about healthcare, safety, and environmental policies. How much is a life worth?
Readings
- “Using mandated speed limits to measure the value of a statistical life” by Ashenfelter and Greenstone (2004)
- “Birds of a Feather: Estimating the Value of Statistical Life from Dual-Earner Families” by Aldy (2019)
Health care
A major sector of the economy, its efficiency and accessibility impact national productivity and well-being.
Readings
- “Multiple dimensions of private information: evidence from the long-term care insurance market” by Finkelstein and McGarry (2006)
- “Does Medicare save lives?” by Card, Dobkin, and Maestas (2009)
War on Drugs
A costly endeavor with (at best) mixed results, it has significant implications for public spending and public health.
Readings
- “The taxation of recreational marijuana: Evidence from Washington state” by Hansen, Miller, and Weber (2017)
- “The economic case against drug prohibition” by Miron and Zwiebel (1995)
Prostitution
An often overlooked part of the economy, sex work faces questions about legality, regulation, and the economic impact of such work.
Readings
- “Decriminalizing indoor prostitution: Implications for sexual violence and public health” by Cunningham and Shah (2017)
- “Prostitution 2.0: The changing face of sex work” by Cunningham and Kendall (2011)
Trade
The lifeblood of the global economy, it influences domestic industries, job creation, and consumer prices.
Readings
- “What do undergrads need to know about trade?” by Krugman (1993)
- “The Return to Protectionism” by Fajgelbaum et al. (2019)
- “The China syndrome: Local labor market effects of import competition in the United States” by David, Dorn, and Hanson (2013)
- “The Production Relocation and Price Effects of U.S. Trade Policy: The Case of Washing Machines” by Flaaen, Horta ̧csu, and Tintelnot (2019)
GDP
The standard measure of economic output, but it’s an imperfect reflection of societal well-being and economic health.
Readings
- “GDP-B: Accounting for the Value of New and Free Goods in the Digital Economy” by Brynjolfsson et al. (2019)
- “GDP as a measure of economic well-being” by Dynan and Sheiner (2019)
Multipliers
Key to understanding the impact of fiscal policy, they quantify how government spending or tax cuts ripple through the economy.
Readings
- “Geographic Cross-Sectional Fiscal Spending Multipliers: What Have We Learned?” by Chodorow-Reich (2019)
- “Ten Years after the Financial Crisis: What Have We Learned from the Renaissance in Fiscal Research?” by Ramey (2019)
NGDP Targeting
A monetary policy approach that could stabilize the economy by focusing on total spending, rather than inflation or unemployment separately.
Readings
- “The Financial Stability Case for a Nominal GDP Target” by Beckworth (2019)
- “Nominal GDP Targeting and the Taylor Rule on an Even Playing Field” by Beckworth and Hendrickson (2019)
- “Facts, Fears, and Functionality of NGDP Level Targeting” by Beckworth (2019)
Immigration
A complex issue that affects labor markets, public finances, and cultural dynamics, it’s integral to understanding economic growth and demographic changes.
Readings
- “Immigration, employment opportunities, and criminal behavior” by Freedman, Owens, and Bohn (2018)
- “Does mass immigration destroy institutions? 1990s Israel as a natural experiment” by Powell, Clark, and Nowrasteh (2017)