Tag Archive for economics

Wesleyan in the News

NewsIn this recurring feature in The Wesleyan Connection, we highlight some of the latest news stories about Wesleyan and our alumni.

Wesleyan in the News

  1. The Washington Post: “How the NRA Highjacked History”

In this op-ed, Associate Professor of History Jennifer Tucker writes about the history of the legal debate over the Second Amendment, and explains how the court’s understanding of that history may shape the nation’s response to the current gun violence epidemic. Her op-ed was reported on in The Trace.

2. The Hill: “A Tragic Misperception About Climate Change”

Gary Yohe, the Huffington Foundation Professor of Economics and Environmental Studies, Emeritus, is co-author of this op-ed that argues “The U.S. contributes to global warming not only through its own emissions of greenhouse gases but also by the effect of its behavior on the actions of other countries.” The U.S. must first “get its own house in order,” then take steps to encourage other countries to take similar action to reduce carbon emissions, he writes.

3. Process: a blog for American history: “The Politics of Statehood in Hawai’i and the Urgency of Non-Statist Decolonization”

In this essay, written on the 60th anniversary of the United States claiming the Hawaiian islands as the 50th state of the union, Professor of American Studies J. Kēhaulani Kauanui reflects on the dispute over Maunakea, a sacred mountain that is currently under threat by those who want to construct a major observatory at its summit. She writes that the dispute “can be seen as a microcosm of the history of Hawai‘i’s (U.S.) statehood and earlier American encroachment.”

Grossman Discusses British Stock Market on Economics Blog

Grossman

Richard Grossman

Richard Grossman, professor of economics, authored a blog post on the Vox CEPR website with Gareth Campbell and John Turner (Queen’s University Belfast) titled, “New monthly indices of the British stock market, 1829-1929.”

Although long-run stock market data are an important indicator, obtaining them is challenging. This column constructs new long-run broad-based indices of equities traded on British securities markets for the period 1829-1929 and combines them with a more recent index to examine the timing of British business cycles and compare returns on home and foreign UK investment. One finding is that the capital gains index of blue-chip companies appears to be a good bellwether of macroeconomic behavior.

The post is based on their CEPR and Wesleyan Economics Working Paper, “Before the cult of equity: New monthly indices of the British share market, 1829-1929.”

Brunet’s Dissertation Summarized in the Journal of Economic History

A summary of Assistant Professor of Economics Gillian Brunet’s dissertation, “Understanding the Effects of Fiscal Policy: Measurement, Mechanisms, and Lessons from History,” was published in the June issue of the Journal of Economic History. She wrote the paper while pursuing her PhD in economics at the University of California, Berkeley.

The global recession of 2008 and the resulting fiscal stimulus packages in many countries have reignited academic interest in government spending multipliers. Despite a growing theoretical and empirical literature, there is little consensus on the impact of government spending on macroeconomic aggregates. Gillian Brunet’s dissertation makes significant contributions to this contested literature by focusing on the largest fiscal shock in modern American history—WWII. Besides providing novel estimates of the fiscal multiplier during the war period, her work also seeks to understand how the economic and institutional contexts affect this important statistic.

The dissertation also won the Economic History Association’s 2018 Allan Nevins Prize Competition.

Brunet’s research interests lie at the intersection of economic history, macroeconomics, and public economics. Her work uses microeconomic data to study macroeconomic questions, often in historical contexts. She is particularly interested in understanding the United States economy during and after World War II.

This fall, she is teaching Economics of Alexander Hamilton’s America and Macroeconomic Analysis.

Kuenzel’s Paper Examines the International Monetary Fund’s Forecast Accuracy

David Kuenzel

David Kuenzel

David Kuenzel, assistant professor of economics, is the co-author of a new paper published in the July–August issue of International Journal of Forecasting titled “Forecasts in Times of Crises.”

In the paper, Kuenzel and his co-authors examine the International Monetary Fund’s (IMF) forecast accuracy of 29 key macroeconomic variables for countries in times of economic crises. In general, forecasts of the IMF add substantial informational value as they outperform naive forecast approaches. However, the paper also documents that there is room for improvement: Two-thirds of the examined macroeconomic variables are forecast inefficiently, and six variables (growth of nominal GDP, public investment, private investment, the current account, net transfers, and government expenditures) exhibit significant forecast biases.

These forecast biases and inefficiencies are mostly driven by low-income countries, perhaps reflecting larger shocks and lower data quality. Most importantly, errors in private consumption growth forecasts are the main drivers of GDP growth forecast errors. The results can help to shed light on which macroeconomic variables require further attention by the IMF in designing future forecast models.

The paper is co-authored by Theo Eicher (University of Washington), Chris Papageorgiou (International Monetary Fund), and Charis Christofides (International Monetary Fund).

Kuenzel is also the author of a paper published in the August issue of the Review of International Economics titled “Do trade flows respond to nudges? Evidence from the WTO’s Trade Policy Review Mechanism.” In the paper, Kuenzel examines whether interactions between WTO members through the Trade Policy Review Mechanism, the WTO’s prime transparency institution, lead to subsequent changes in trade flows. This question is of particular interest, as relatively little is known about the economic effects of WTO members’ communications outside of official negotiations and dispute proceedings. Kuenzel’s analysis shows that trade policy concern submissions by WTO members are more likely to lead to positive trade responses when (i) the receiving country is less concerned about terms‐of‐trade losses, (ii) the submitter is more willing to engage in WTO disputes with the reviewed member to challenge controversial trade policies, and (iii) the submitting country challenges trade policies in the nonchemical manufacturing sector. However, nudges through the TPR process are not successful in raising agricultural trade.

Paper by Thomas-Franz ’20 Wins Economics Department Prize

A paper written by Kaitlyn Thomas-Franz ’20 was the recipient of the 2018–19 Lebergott-Lovell Prize for the best paper written for a course that uses empirical techniques to analyze an economic problem.

Thomas-Franz wrote the paper “The 1918 Influenza Epidemic and U.S. Female Labor Force Participation” while she was taking Macroeconomic Analysis during the spring 2019 semester. The class was taught by Gillian Brunet, assistant professor of economics.

Honorable mentions included Qiyuan Zheng ’20 for a paper titled “FPI in Emerging Markets: Does the Equity Home Bias Theory Extend?” and Dominic Oliver ’19 for a paper titled “The Determinants of Zoning Regulation.”

Zheng wrote the paper while taking Econometrics during the spring 2019 semester. The class was taught by Anthony Keats, assistant professor of economics.

Oliver wrote his paper while taking Macroeconomic Policy during the spring 2019 semester. The class was taught by Gillian Brunet.

Stanley Lebergott and Michael Lovell, the prize’s namesakes, both held the title of Chester D. Hubbard Professor of Economics and Social Science.

Faculty nominated five papers for the prize.

The committee consisted of Keats, Karl David Boulware, and Abigail Hornstein.

Wesleyan in the News

In this recurring feature in The Wesleyan Connection, we highlight some of the latest news stories about Wesleyan and our alumni.

Wesleyan in the News

1. Where We Live: “The Life and Legacy of American Composer Charles Ives”

Neely Bruce, the John Spencer Camp Professor of Music, is a guest on this show about the legacy of composer Charles Ives. Bruce is the only pianist who has ever played all of the Ives music for solo voice, in a project called the Ives Vocal Marathon, which took place at Wesleyan in 2009. He is also the co-editor of a new collection of Ives songs, a former member of the board of the Charles Ives Society, and the chair of the Artistic Advisory Committee of the society.

2. The New York Times: “Don’t Dismiss ‘Safe Spaces'”

In this op-ed, President Michael Roth argues that while “safe spaces” can be taken too far on college campuses, the much-maligned concept actually “underlies the university’s primary obligations” to its students. He advocates for creating “safe enough spaces,” which “promote a basic sense of inclusion and respect that enables students to learn and grow—to be open to ideas and perspectives so that the differences they encounter are educative.” Roth further explores this topic and many others in his new book, Safe Enough Spaces: A Pragmatist’s Approach to Inclusion, Free Speech, and Political Correctness on College CampusesHe was interviewed recently about the book on several radio shows, including The Jim Bohannon Show, The Brian Lehrer Show, WGBH On Campus Radio, and Wisconsin Public Radio, among others, and published op-eds in the Boston Globe and The Atlantic.

Wesleyan in the News

In this recurring feature in The Wesleyan Connection, we highlight some of the latest news stories about Wesleyan and our alumni.

Wesleyan in the News

  1. The Hill: “Advice on Climate Policy for the 2020 Presidential Candidates”

In this op-ed, Huffington Foundation Professor of Economics and Environmental Studies, Emeritus Gary Yohe and his coauthors write that they are encouraged by the “unprecedented attention being given to climate change among those vying for the 2020 Democratic presidential nomination” and offer words of advice for creating an ambitious but credible climate policy.

2. AINT — BAD: “Isabella Convertino”

The photography of Isabella Convertino ’20 is featured on this website, an independent publisher of new photographic art. According to the article, “Her work has been published by ROMAN NVMERALS press, and was recently acquired by the MoMA library. Convertino’s images speak to the complications of adolescence, compounding memory and trauma as points of departure. Interested in the interplay between familial and gender structures, her work probes modes of power-inheritance and the potential devastation of genetic happenstance.”

3. EOS: “Resurrecting Interest in a ‘Dead’ Planet”

Martha Gilmore, the George I. Seney Professor of Geology, is quoted in this article on new research suggesting that, contrary to popular belief, the surface of Venus actually may be quite active today. “Venus is an Earth-sized planet and now—who knew?!—there are Earth-sized planets all over the galaxy,” said Gilmore. “So now, Venus is even more relevant for that reason.”

4. The Middletown Press: “High School Students from Around World Take Part in Wesleyan Summer Arts Camp”

Sixty-eight Center for Creative Youth (CCY) participants from around the country and the world recently demonstrated the skills they had learned in just a week of intensive art study during a community share day. Wesleyan assumed leadership of CCY in fall 2018 as an official University program, and this is the first time the camp has been offered under Wesleyan’s management.

Members of the Class of 2019 Inducted into Phi Beta Kappa

PBK

On May 25, members of the Class of 2019 were inducted into Wesleyan’s Gamma Chapter of Phi Beta Kappa Society, the oldest national scholastic honor society. The Wesleyan Gamma Chapter was organized in 1845 and is the ninth-oldest chapter in the country.

To be elected, a student must first have been nominated by the department of his or her major. The student also must have demonstrated curricular breadth by having met the General Education Expectations and must have achieved a GPA of 93 and above.

Phi Beta Kappa is the oldest surviving Greek letter society in America, founded in December 1776 by five students who attended the College of William and Mary in Williamsburg, Virginia. The emblem contains the three Greek letters “Phi-Beta-Kappa,” which are the initials of the Greek motto, Philosophia Biou Kybernetes. This essentially means “the love of wisdom is the guide of life.”

The spring 2019 inductees are:

Caroline Adams
Yulia Alexandr
Erin Angell
William Bellamy
Cara Bendich
Zachary Bennett
Chiara Bercu
Sophie Brett-Chin
Nicholas Byers
David Cabanero
Talia Cohen
John Cote 

Grossman in The Conversation: May Jobs Report Suggests a Slowing Economy—and Possibly an Imminent Interest Rate Cut

Richard Grossman

Wesleyan faculty frequently publish articles based on their scholarship in The Conversation US, a nonprofit news organization with the tagline, “Academic rigor, journalistic flair.” In a new article, Professor and Chair of Economics Richard Grossman analyzes the latest jobs report.

May jobs report suggests a slowing economy – and possibly an imminent interest rate cut

The latest jobs data suggests an interest rate cut may be imminent.

The Labor Department reported on June 7 that U.S. nonfarm payroll employment increased by 75,000 in May, while the unemployment rate remained unchanged at 3.6%. This level of job creation was well below economists’ forecasts of about 185,000 new jobs, as well as below the average monthly increase of 164,000 in 2019 and 223,000 in 2018.

Although it’s difficult – even for an economist like me who studies economic policy – to interpret the data reported in any one jobs report as the beginning of a trend, the latest numbers do suggest the Federal Reserve may have to lower its benchmark interest rate to shore up the economy.

That may happen as soon as this month, when the Fed’s interest rate-setting panel, the Federal Open Market Committee, convenes its next meeting June 18-19. A cut would be a sharp reversal from Fed policy as recently as December, when it last raised the rate.

Yohe in The Conversation: The Economic Cost of Devastating Hurricanes and Other Extreme Weather Events Is Even Worse Than We Thought

Gary Yohe

Wesleyan faculty frequently publish articles based on their scholarship in The Conversation US, a nonprofit news organization with the tagline, “Academic rigor, journalistic flair.” In a new article, Huffington Foundation Professor of Economics and Environmental Studies Gary Yohe writes about the economic costs of climate change, which he argues will hit our economy much sooner than many people realize.

The economic cost of devastating hurricanes and other extreme weather events is even worse than we thought

June marks the official start of hurricane season. If recent history is any guide, it will prove to be another destructive year thanks to the worsening impact of climate change.

But beyond more intense hurricanes and explosive wildfires, the warming climate has been blamed for causing a sharp uptick in all types of extreme weather events across the country, such as severe flooding across the U.S. this spring and extensive drought in the Southwest in recent years.

Late last year, the media blared that these and other consequences of climate change could cut U.S. GDP by 10% by the end of the century – “more than double the losses of the Great Depression,” as The New York Times intoned. That figure was drawn from a single figure in the U.S. government’s Fourth National Climate Assessment. (Disclosure: I reviewed that report and was the vice chair on the third one, released in 2014.)

Wesleyan in the News

In this recurring feature in The Wesleyan Connection, we highlight some of the latest news stories about Wesleyan and our alumni.

Recent Wesleyan News

  1. Gizmodo: “What’s the Oldest Disease?”

Douglas Charles, professor of anthropology, professor of archaeology, says “we don’t know” the answer to this question because of limitations in fossil records. However, he says that there are indications of tuberculosis, leprosy and tumors found in ancient human and Homo erectus skeletons.

  1. The Middletown Press: “Wesleyan University to Move 90 Employees to Main Street Middletown”

Wesleyan’s University Relations staff and most Finance staff will move to the Main Street building as part of the University’s strategic facilities plan. This move further strengthens ties between the University and the community.

2. The Wall Street Journal: “Five Best: Andrew Curran on Intellectual Freedom”

Tran ’21 Wins Japanese Language Essay Contest Prize

Jess Tran ’21

Vietnam native Jess Tran ’21 grew up learning her native language alongside English, but it wasn’t until her freshman year at Wesleyan that she decided to give a third language a try—Japanese.

Tran, an economics major and College of East Asian Studies minor, immersed herself in the new language for two years. This month, she won a prize at the annual Consulate General of Japan in Boston Japanese Language Contest.

The essay prompt was “What is Japan to me?”

“In essence, I talked about how my initial admiration for certain aspects of Japan inspired me to think about how I can contribute to Vietnam—my home country, and how learning Japanese actually gives me a better understanding of my own mother tongue and solidifies my interest in language and Asian culture,” Tran said.

Learning Japanese, Tran explained, is much different, grammatically, than English or Vietnamese, although it is indirectly connected with Vietnamese through certain shared characteristics with Chinese.

“So often, as I learn Japanese, I would learn something new about or learn new ways of thinking about Vietnamese, and it’s very fascinating to see how the differences in cultural values tie into the differences in the two languages,” Tran said. “I feel like I’m not only learning a new language but a new thinking structure.”

Tran took third place in the contest’s intermediate level essay division, which is open to students who have completed fewer than two years of Japanese language study and have not studied in Japan.

Tran said she’d “definitely recommend everyone who’s interested in Japanese to participate [in the essay contest] because it’s a great learning experience.”

“My Japanese professors were extremely patient and helpful during the process, and it really helps consolidate what was taught in class,” she said.

In 2018, Zhaoyu Sun ’20 took second place in the contest.