Department of Economics
Economics is a broad field that aims to understand why the world works as it does and how government and other interventions might affect well-being. The field is diverse methodologically, encompassing mathematical modeling, data science, and randomized trials as appropriate. It interacts both with other social sciences, as with political science and psychology in the attempt to better understand government and individual behavior, and with the sciences, as with statistics and computer science in developing data analysis techniques.
Economics studies decision-making at the individual level and the aggregate outcomes that result when individuals, firms, institutions and governments interact. It remains concerned with classic topics, such as the causes of business cycles, the effects of industry regulations, and the consequences of tax policies, but also focuses on the diverse social challenges of the developed and developing world: poverty, education, health, the environment, and inequality.
The Department of Economics offers subjects at multiple levels in the three core areas of the discipline—microeconomic theory, macroeconomics, and econometrics—and specialized subjects in many applied fields, including development economics, environmental economics, health economics, industrial organization, international trade, labor economics, political economy, and public finance.
The department offers several undergraduate programs that prepare students for careers in business, finance, consulting, law and public policy, and for further study. Its doctoral program is frequently ranked as the best in the world.
Bachelor of Science in Economics (Course 14-1)
Bachelor of Science in Mathematical Economics (Course 14-2)
Bachelor of Science in Computer Science, Economics, and Data Science (Course 6-14)
Undergraduate Study
Bachelor of Science in Economics (Course 14-1)
Course 14-1, leading to the Bachelor of Science in Economics, provides students with a breadth and depth of training in economics that is unusual at the undergraduate level. It combines training in technical economics with in-depth exploration of students’ areas of interest. Students choose from a diverse set of upper-level undergraduate subjects and are encouraged to engage in independent research.
The aims of the SB in Economics degree program are threefold: to give students a firm grounding in economic theory and data analysis, to develop in-depth knowledge of particular economic issues, and to develop students’ capabilities for independent research. These aims correspond roughly to the requirements in the Course 14-1 program of theory, statistics and econometrics, electives, and research.
The requirements allow substantial freedom for students in designing individual programs within economics and in balancing the program with subjects in other disciplines. The ample elective slots let students apply their technical skills to develop a deep understanding of whatever interests them, whether that is poverty in developing countries, international trade, game theory, for example. The department recommends that students interested in graduate work in economics build their technical skills with additional subjects in mathematics and computer science. Students can also complement their studies in the major with subjects in political science, history, and other social sciences.
The major is sufficiently flexible that students can transfer into the major or add it as a second major without having taken courses beyond 14.01 Principles of Microeconomics and 14.02 Principles of Macroeconomics in the first two years. Students typically complete an intermediate micro subject, 14.05 Intermediate Macroeconomics, 14.30 Introduction to Statistical Methods in Economics, and 14.32 Econometric Data Science by the third year. This satisfies the prerequisites for all subjects (including 14.33 Research and Communication in Economics: Topics, Methods, and Implementation) and prepares students for research on their thesis and in other elective subjects.
Bachelor of Science in Mathematical Economics (Course 14-2)
The SB in Mathematical Economics is designed for students who desire a deeper mathematical foundation and allows them to concentrate in a subset of economics topics. This program is well suited to students interested in mathematical microeconomic theory or econometrics. Students will gain the strong mathematical and theoretical preparation needed for subsequent graduate study in economics.
Students majoring in Mathematical Economics start with the same introductory micro and macro courses as 14-1 majors. They go on to take a program that includes rigorous mathematical training in microeconomic theory and econometrics, and substantial coursework in mathematics, including 18.100x Real Analysis, a choice between 18.06 Linear Algebra or 18.03 Differential Equations, and at least one mathematics seminar.
Bachelor of Science in Computer Science, Economics, and Data Science (Course 6-14)
The Department of Electrical Engineering and Computer Science and the Department of Economics offer a joint curriculum leading to a Bachelor of Science in Computer Science, Economics and Data Science (Course 6-14). The interdisciplinary major provides students a portfolio of skills in economics, computing, and data science that are increasingly valued in both the business world and academia. The economics and computer science disciplines have a substantial overlap both in their reliance on game theory and mathematical modeling techniques and their use of data analytics. The economics side of the program includes subjects in microeconomic theory and econometrics and electives that expose students to how economists in various fields use mathematical models and statistical evidence to think about problems. The computer science side includes a number of subjects that develop complementary knowledge, including the study of algorithms, optimization, and machine learning (which is increasingly integrated with econometrics). The program also includes coursework in several mathematical subjects, including linear algebra, probability, discrete mathematics, and statistics, which can be taken in various departments.
The Course 6-14 major is also well suited to students whose primary interest is in game theory and mathematical modeling. It can prepare students for graduate study in either discipline.
Minor in Economics
The objective of the minor is to extend the understanding of economic issues beyond the level of the concentration. This is done through specialized analytical subjects and elective subjects that provide an extensive treatment of economic issues in particular areas.
The Minor in Economics consists of six subjects arranged into three levels of study:
| Tier I | ||
| 14.01 | Principles of Microeconomics 1 | 12 |
| 14.02 | Principles of Macroeconomics 1 | 12 |
| 14.30 | Introduction to Statistical Methods in Economics | 12 |
| or 18.05 | Introduction to Probability and Statistics | |
| Tier II | ||
| Select one of the following: | 12 | |
| Microeconomic Theory and Public Policy | ||
| Intermediate Microeconomic Theory | ||
| Intermediate Macroeconomics | ||
| Tier III | ||
| Select two elective subjects in applied economics. 2 | 24 | |
| Total Units | 72 | |
| 1 | Under no circumstances may a student complete a minor with fewer than six subjects. Any student who receives permission from the Economics Department to skip 14.01 and/or 14.02 in order to take a higher-level subject must take a replacement subject for each subject that is skipped. |
| 2 | See the department's website for a list of available subjects. |
Inquiries
For more information regarding admissions or financial aid, contact Julia Martyn-Shah, 617-253-8787. For undergraduate admissions and academic programs, contact Gary King, 617-253-0951. For any other information, contact Megan Miller, 617-253-3807.
Master of Science in Economics
Master of Applied Science in Data, Economics, and Design of Policy
Master of Engineering in Computer Science, Economics, and Data Science
Graduate Study
Admission Requirements for Graduate Study
The Department of Economics specifies the following prerequisites for graduate study in economics: one full year of college mathematics and an appreciable number of professional subjects in economics for those qualified students who have majored in fields other than economics. Applicants for admission who have deficiencies in entrance requirements should consult with the department about programs to remedy such deficits.
Master of Science in Economics
In unusual circumstances, admission may be granted to current MIT students seeking the Master of Science degree. The general requirements for the SM are given in the section on Graduate Education.
Master of Applied Science in Data, Economics, and Design of Policy
The Master of Applied Science in Data, Economics, and Design of Policy is an intensive program consisting of a series of nine subjects plus a capstone experience (a summer internship and a corresponding project report). Students will gain a strong foundation in microeconomics, development economics, probability, and statistics; engage with cutting-edge research; and develop practical skills in data analysis and the evaluation of social programs. Only students who have successfully completed the MITx MicroMasters credential in Data, Economics and Design of Policy are eligible to apply to the on-campus Master’s program.
Email for more information or visit the website.
Master of Engineering in Computer Science, Economics, and Data Science
The Department of Electrical Engineering and Computer Science and the Department of Economics offer a joint curriculum leading to a Master of Engineering in Computer Science, Economics, and Data Science. Computer science and data science provide tools for problem solving, and economics applies those tools to domains where there is rapidly growing intellectual, scholarly, and commercial interest, such as online markets, crowdsourcing platforms, spectrum auctions, financial platforms, crypto currencies, and large-scale matching/allocation systems such as kidney donation and public school choice systems. This joint program prepares students for jobs in economics, management consulting, and finance. Students in the program are full members of both departments, with a single advisor chosen from EECS or Economics based on interests of the student as well as the advisor's interest and expertise in the 6-14 area.
The Master's of Engineering in Computer Science, Economics, and Data Science (Course 6-14P) builds on the foundation provided by the Bachelor of Science in Computer Science, Economics, and Data Science (Course 6-14) to provide both advanced classwork and master's-level thesis work. The student selects (with departmental review and approval) 42 units of advanced graduate subjects, which include two subjects in economics and two subjects in electrical engineering and computer science. A further 24 units of electives are chosen from a restricted departmental list of math electives.
The Master of Engineering degree also requires 24 units of thesis credit. While a student may register for more than this number of thesis units, only 24 units count toward the degree requirement.
Programs leading to the five-year Master of Engineering degree or to the four-year Bachelor of Science degree can be arranged to be identical through the junior year. At the end of the junior year, students with a strong academic record will be offered the opportunity to continue through the five-year master's program. A student in the Master of Engineering program must be registered as a graduate student for at least one regular (non-summer) term. To remain in the program and to receive the Master of Engineering degree, students will be expected to maintain a strong academic record. Admission to the Master of Engineering program is open only to undergraduate students who have completed their junior year in the Course 6-14 Bachelor of Science program.
Financial Support
The fifth year of study toward the Master of Engineering degree can be supported by a combination of personal funds, a fellowship, or a graduate assistantship. Assistantships require participation in research or teaching in the department or in one of the associated laboratories. Full-time assistants may register for no more than two scheduled classroom or laboratory subjects during the term, but may receive academic credit for their participation in the teaching or research program. Support through an assistantship may extend the period required to complete the Master of Engineering program by an additional term or two. Support is granted competitively to graduate students and will not be available for all of those admitted to the Master of Engineering program. If provided, department support for Master of Engineering candidates is normally limited to the first three terms as a graduate student unless the Master of Engineering thesis has been completed, the student has served as a teaching assistant, or the student has been admitted to the doctoral program, in which cases a fourth term of support may be permitted.
Inquiries
For additional information regarding teaching and research programs, contact the EECS Undergraduate Office, Room 38-476, 617-253-4654, or visit the department's website.
Doctor of Philosophy
The Department of Economics offers a Doctor of Philosophy (PhD) in Economics. Students in the doctoral program complete a course of study involving a series of required core subjects in microeconomic theory, macroeconomics, and econometrics; coursework (with a grade of B or better) in two major and two minor fields of study from among those offered by the department; a research paper; and a thesis. The coursework and research paper, completed in the program's first two years, culminate in a general examination. The four fields of study are chosen from advanced economic theory; computation and statistics (minor field only); econometrics; economic development; finance; industrial organization; international economics; labor economics; monetary economics; organizational economics; political economy; and public economics.
Following successful completion of the general examination requirement, the student forms a thesis committee of two or three faculty members. The thesis must meet high professional standards and make a significant original contribution to the student’s chosen research area. The thesis must be approved by the thesis committee and then by an independent faculty member in the department selected by the chair of the Graduate Committee. Upon successful completion of the program, students are awarded the PhD in economics.
There is no required minimum number of graduate subjects in the department. Students must be in residence for a minimum of two years. However, candidates ordinarily need two full academic years of study to complete the core and field of study requirements, and the doctoral thesis typically requires three to four years of additional research effort.
Interdisciplinary Program
Economics and Statistics
The Interdisciplinary Doctoral Program in Statistics provides training in statistics, including classical statistics and probability as well as computation and data analysis, to students who wish to integrate these valuable skills into their primary academic program. The program is administered jointly by the departments of Aeronautics and Astronautics, Economics, Mathematics, Mechanical Engineering, Physics, and Political Science, and the Statistics and Data Science Center within the Institute for Data, Systems, and Society. It is open to current doctoral students in participating departments. For more information, including department-specific requirements, see the full program description under Interdisciplinary Graduate Programs.
Financial Support
Many doctoral students are supported by scholarship and fellowship grants, as well as by teaching and research assistantships.
Inquiries
For more information regarding admissions or financial aid, contact Julia Martyn-Shah, 617-253-8787. For undergraduate admissions and academic programs, contact Gary King, 617-253-0951. For any other information, contact Megan Miller, 617-253-3807.
Faculty and Teaching Staff
Jonathan Gruber, PhD
Ford Professor
Professor of Economics
Head, Department of Economics
Arnaud Costinot, PhD
Professor of Economics
Associate Head, Department of Economics
Professors
Alberto Abadie, PhD
Professor of Economics
Member, Institute for Data, Systems, and Society
Daron Acemoglu, PhD
Institute Professor
Professor of Economics
Member, Institute for Data, Systems, and Society
Nikhil Agarwal, PhD
Professor of Economics
Isaiah Andrews, PhD
Professor of Economics
Joshua Angrist, PhD
Ford Professor
Professor of Economics
David Atkin, PhD
Professor of Economics
(On leave)
David H. Autor, PhD
Ford Professor
Professor of Economics
Abhijit Banerjee, PhD
Ford International Professor
Professor of Economics
(On leave, spring)
Ricardo J. Caballero, PhD
Ford International Professor
Professor of Economics
Victor V. Chernozhukov, PhD
Ford International Professor
Professor of Economics
Member, Institute for Data, Systems, and Society
David J. Donaldson, PhD
Class of 1949 Professor
Professor of Economics
(On leave)
Esther Duflo, PhD
Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics
Member, Institute for Data, Systems, and Society
(On leave, spring)
Glenn Ellison, PhD
Gregory K. Palm (1970) Professor
Professor of Economics
(On leave)
Amy Finkelstein, PhD
John and Jennie S. MacDonald Professor
Professor of Economics
(On leave)
Drew Fudenberg, PhD
Paul A. Samuelson Professor
Professor of Economics
(On leave, spring)
Robert S. Gibbons, PhD
Sloan Distinguished Professor of Management
Professor of Applied Economics
Nathaniel Hendren, PhD
Professor of Economics
(On leave, fall)
Paul L. Joskow, PhD
Elizabeth and James Killian Professor Post-Tenure
Professor Post-Tenure of Economics
Anna Mikusheva, PhD
Professor of Economics
Stephen Morris, PhD
Peter A. Diamond Professor
Professor of Economics
Whitney K. Newey, PhD
Ford Professor
Professor of Economics
Member, Institute for Data, Systems, and Society
(On leave, spring)
Benjamin A. Olken, PhD
Jane Berkowitz Carlton and Dennis William Carlton Professor
Professor of Economics
Parag Pathak, PhD
Class of 1922 Professor
Professor of Economics
James M. Poterba, PhD
Mitsui Professor
Professor of Economics
Drazen Prelec, PhD
Digital Equipment Corp. Leaders for Global Operations Professor of Management
Professor of Management Science
Professor of Economics
Professor of Brain and Cognitive Sciences
Nancy L. Rose, PhD
Charles P. Kindleberger Professor of Applied Economics
Professor of Economics
Robert Townsend, PhD
Elizabeth and James Killian (1926) Professor
Professor of Economics
Ivan Werning, PhD
Robert M. Solow Professor
Professor of Economics
Michael Whinston, PhD
Society of Sloan Fellows Professor of Management
Professor of Economics
Professor of Applied Economics
Alexander Greenberg Wolitzky, PhD
Professor of Economics
Muhamet Yildiz, PhD
Professor of Economics
Associate Professors
Martin Beraja, PhD
Pentti Kouri Career Development Professor
Associate Professor of Economics
Simon Jaeger, PhD
Silverman (1968) Family Career Development Professor
Associate Professor of Economics
(On leave)
Tobias Salz, PhD
Castle Krob Career Development Professor
Associate Professor of Economics
Frank Schilbach, PhD
Gary Loveman Career Development Professor
Associate Professor of Economics
Assistant Professors
Ian Ball, PhD
Gary Loveman Career Development Professor
Assistant Professor of Economics
(On leave)
Ashesh Rambachan, PhD
Assistant Professor of Economics
Nina Roussille, PhD
Assistant Professor of Economics
Christian Wolf, PhD
Rudi Dornbusch Career Development Professor
Assistant Professor of Economics
(On leave)
Visiting Professors
Abigail Adams-Prassl, PhD
Visiting Professor of Economics
Fernando Alvarez, PhD
Visiting Professor of Economics
Kelsey Jack, PhD
Visiting Professor of Economics
Robin McKnight, PhD
Visiting Professor of Economics
Sendhil Mullainathan, PhD
Visiting Professor of Economics
Tomasz Sadzik, PhD
Visiting Professor of Economics
Senior Lecturers
Sara F. Ellison, PhD
Senior Lecturer in Economics
(On leave)
Professors Emeriti
Olivier Jean Blanchard, PhD
Robert M. Solow Professor Emeritus
Professor Emeritus of Economics
Peter A. Diamond, PhD
Institute Professor Emeritus
Professor Emeritus of Economics
Stanley Fischer, PhD
Professor Emeritus of Economics
Jeffrey E. Harris, MD, PhD
Professor Emeritus of Economics
Jerry A. Hausman, PhD
John and Jennie S. MacDonald Professor Emeritus
Professor Emeritus of Economics
Bengt Holmström, PhD
Paul A. Samuelson Professor Emeritus
Professor Emeritus of Economics
Professor Emeritus of Applied Economics
Michael J. Piore, PhD
David W. Skinner Professor Emeritus
Professor Emeritus of Political Economy
Professor Emeritus of Political Science
Richard Schmalensee, PhD
Howard W. Johnson Professor Emeritus
Professor Emeritus of Management
Professor Emeritus of Economics
Robert M. Solow, PhD
Institute Professor Emeritus
Professor Emeritus of Economics
Peter Temin, PhD
Elisha Gray II Professor Emeritus
Professor Emeritus of Economics
William C. Wheaton, PhD
Professor Emeritus of Urban Studies and Planning
Professor Emeritus of Economics
General Economics and Theory
14.00 Undergraduate Internship in Economics
Prereq: Permission of instructor
U (IAP, Summer)
Units arranged [P/D/F]
Can be repeated for credit.
For Course 14 students participating in off-campus internship experiences in economics. Before registering for this subject, students must have an employment offer from a company or organization and must identify a Course 14 supervisor. Upon completion of the internship, student must submit a letter from the employer describing the work accomplished, along with a substantive final report from the student approved by the MIT supervisor. Subject to departmental approval. Consult departmental undergraduate office.
Consult D. Donaldson
14.000 Graduate Internship in Economics
Prereq: Permission of instructor
G (IAP, Summer)
Units arranged [P/D/F]
Can be repeated for credit.
For Course 14 students participating in off-campus internship experiences in economics. Before registering for this subject, students must have an employment offer from a company or organization and must identify a Course 14 supervisor. Upon completion of the internship, student must submit a letter from the employer describing the work accomplished, along with a substantive final report from the student approved by the MIT supervisor. Subject to departmental approval. Consult departmental graduate office.
Consult A. Banerjee
14.001 Data Economics and Development Policy Summer Internship
Prereq: Permission of department
G (Fall, Spring, Summer)
0-1-0 units
Provides students in the DEDP Master's program the opportunity to synthesize their coursework and professional experience in development economics and data analysis. In the context of a summer internship, students apply the knowledge gained in the program towards a project with a host organization, typically in the development sector. Students will be supported in finding a suitable opportunity or research project. All internship placements are subject to approval by the program director. Each student must write a capstone project report. Restricted to DEDP MASc students.
S. Ellison
14.003 Microeconomic Theory and Public Policy
Subject meets with 14.03
Prereq: 14.01 or permission of instructor
G (Fall, Spring)
4-0-8 units
Applies microeconomic theory to analysis of public policy. Builds from microeconomic model of consumer behavior; extends to operation of single and multiple markets and analysis of why markets sometimes fail. Empirical examples to evaluate theory, focusing on the casual effects of policy interventions on economic outcomes. Topics include minimum wages and employment, food stamps and consumer welfare, economics of risk and safety regulation, the value of education, and gains from international trade. Graduate students are expected to complete additional assignments.
Consult N. Agarwal, D. Autor, T. Salz
14.009 Economics and Society's Toughest Problems
Prereq: None
U (Fall)
1-0-2 units
Should we trade more or less with China? Why are some countries poor, and some countries rich? Why are the 1% getting richer? Should the US have a universal basic income? Why is our society becoming so polarized? What can we do to mitigate climate change? Will robots take all the jobs? Why does racism persist and how can we fight it? What will the world economy look like after the COVID-19 recession? Economics shows you how to think about some of the toughest problems facing society — and how to use data to get answers. Features lectures by MIT's economics faculty, showing how their cutting-edge research can help answer these questions. In lieu of problem sets, quizzes, or other written assignments, students produce materials of their choice (podcasts, TikToks, longer videos) with the view to make a potential audience excited about economics. Subject can count toward the 6-unit discovery-focused credit limit for first-year students.
E. Duflo
14.01 Principles of Microeconomics
Prereq: None
U (Fall, Spring)
3-0-9 units. HASS-S
Introduces microeconomic concepts and analysis, supply and demand analysis, theories of the firm and individual behavior, competition and monopoly, and welfare economics. Applications to problems of current economic policy.
J. Gruber, S. Ellison
14.02 Principles of Macroeconomics
Prereq: None
U (Fall, Spring)
3-0-9 units. HASS-S
Provides an overview of macroeconomic issues including the determination of national income, economic growth, unemployment, inflation, interest rates, and exchange rates. Introduces basic macroeconomic models and illustrates key principles through applications to the experience of the US and other economies. Explores a range of current policy debates, such as the economic effects of monetary and fiscal policy, the causes and consequences of the 2008 global financial crisis, and the factors that influence long-term growth in living standards. Lectures are recorded and available for students with scheduling conflicts.
M. Beraja, R. Caballero, J. Poterba
14.03 Microeconomic Theory and Public Policy
Subject meets with 14.003
Prereq: 14.01 or permission of instructor
U (Fall, Spring)
4-0-8 units. HASS-S
Applies microeconomic theory to analysis of public policy. Builds from microeconomic model of consumer behavior; extends to operation of single and multiple markets and analysis of why markets sometimes fail. Empirical examples to evaluate theory, focusing on the casual effects of policy interventions on economic outcomes. Topics include minimum wages and employment, food stamps and consumer welfare, economics of risk and safety regulation, the value of education, and gains from international trade.
Consult N. Agarwal, D. Autor, T. Salz
14.04 Intermediate Microeconomic Theory
Prereq: Calculus II (GIR) and 14.01
U (Fall)
4-0-8 units. HASS-S
Introduction to economic science, featuring theory and data, with attention to recent innovations, such as crypto tokens, distributed ledgers and blockchain, and smart contracts. Covers applications from developing and developed economies, including the optimal allocation of risk, contract theory and mechanism design, improved financial and information infrastructure. Discusses the role of public authorities with regard to general equilibrium theory, welfare theorems and their failure with resolutions, design of media of exchange, decentralized finance (DeFi) contrasted with centralized exchange, and contracting platforms.
R. Townsend
14.05 Intermediate Macroeconomics
Prereq: 14.01 and (14.02 or permission of instructor)
U (Fall)
4-0-8 units. HASS-S
Uses the tools of macroeconomics to investigate various macroeconomic issues in depth. Topics range from economic growth and inequality in the long run to economic stability and financial crises in the short run. Surveys many economic models used today. Requires a substantial research paper on the economics of long-run economic growth.
Consult Department Headquarters
14.06 Advanced Macroeconomics
Prereq: 14.01 and 14.02
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: U (Fall)
4-0-8 units. HASS-S
Blends a thorough study of the theoretical foundations of modern macroeconomics with a review of useful mathematical tools, such as dynamic programming, optimal control, and dynamic systems. Develops comfort with formal macroeconomic reasoning and deepens understanding of key macroeconomic phenomena, such as business cycles. Goes on to study more specific topics, such as unemployment, financial crises, and the role of fiscal and monetary policy. Special attention to reviewing relevant facts and disentangling them from their popular interpretations. Uses insights and tools from game theory. Includes applications to recent and historical events.
G. M. Angeletos
14.08 Technical Topics in Economics
Prereq: 14.01
U (Fall, Spring)
4-0-8 units
Can be repeated for credit.
Considers technical issues of current research interest in economics.
Consult Department Headquarters
14.09 Reading Seminar in Economics
Prereq: 14.04 and 14.06
U (Fall, IAP, Spring, Summer)
Units arranged [P/D/F]
Can be repeated for credit.
Reading and discussion of particular topics in economics. Open to undergraduate students by arrangement with individual faculty members. Consult Department Headquarters.
D. Donaldson
14.10 Reading Seminar in Economics
Prereq: 14.04 and 14.06
U (Fall, IAP, Spring, Summer)
Units arranged
Can be repeated for credit.
Reading and discussion of particular topics in economics. Open to undergraduate students by arrangement with individual faculty members. Consult Department Headquarters.
D. Donaldson
14.11 Topics in Economics
Prereq: 14.01
U (Fall)
Not offered regularly; consult department
4-0-8 units. HASS-S
Can be repeated for credit.
Considers issues of current research interest in economics.
Consult Department Headquarters
14.12 Economic Applications of Game Theory
Prereq: 14.01 and (6.041B, 14.04, 14.30, 18.05, or permission of instructor)
U (Fall)
4-0-8 units. HASS-S
Analysis of strategic behavior in multi-person economic settings. Introduction to solution concepts, such as rationalizability, backwards induction, Nash equilibrium, subgame-perfect equilibrium, and sequential equilibrium. Strong emphasis on dynamic games, such as repeated games. Introduction to Bayesian games, focusing on Bayesian Nash Equilibrium, Perfect Bayesian Equilibrium, and signaling games. Applications drawn from microeconomics: imperfect competition, implicit cartels, bargaining, and auctions.
I. Ball
14.121 Microeconomic Theory I
Prereq: 14.04 and permission of instructor
G (Fall; first half of term)
3-0-3 units
Covers consumer and producer theory, markets and competition, general equilibrium and the welfare theorems; featuring applications, uncertainty, identification and restrictions models place on data. Enrollment limited; preference to PhD students.
P. Pathak
14.122 Microeconomic Theory II
Prereq: 14.121 and permission of instructor
G (Fall; second half of term)
3-0-3 units
Introduction to game theory. Topics include normal form and extensive form games, and games with incomplete information. Enrollment limited.
G. Ellison
14.123 Microeconomic Theory III
Prereq: 14.121, 14.122, and permission of instructor
G (Spring; first half of term)
3-0-3 units
Models of individual decision-making under certainty and uncertainty. Additional topics in game theory. Enrollment limited.
D. Fudenberg
14.124 Microeconomic Theory IV
Prereq: 14.123 or permission of instructor
G (Spring; second half of term)
3-0-3 units
Introduction to statistical decision theory, incentive contracting (moral hazard and adverse selection), mechanism design and incomplete contracting. Enrollment limited.
A. Wolitzky
14.125 Market Design
Prereq: 14.124
G (Spring)
4-0-8 units
Theory and practice of market design, building on ideas from microeconomics, game theory and mechanism design. Prominent case studies include auctions, labor markets, school choice, prediction markets, financial markets, and organ exchange clearinghouses.
P. Pathak
14.126 Game Theory
Prereq: 14.122
G (Spring)
3-0-9 units
Investigates equilibrium and non-equilibrium solution concepts and their foundations as the result of learning or evolution. Studies the equilibria of supermodular games, global games, repeated games, signaling games, and models of bargaining, cheap talk, and reputation.
D. Fudenberg, A. Wolitzky, M. Yildiz
14.127 Advanced Game Theory
Prereq: None
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: G (Fall)
4-0-8 units
For students who plan to do game theory research. Covers the following topics: epistemic foundations of game theory, higher order beliefs, the role and status of common prior assumptions, social networks and social learning, repeated and stochastic games, non-equilibrium learning, stochastic stability and evolutionary dynamics, game theory experiments, and behavioral game theory.
D. Fudenberg, M. Yildiz
14.129 Advanced Contract Theory
Prereq: 14.121, 14.281, or permission of instructor
G (Spring)
3-0-3 units
Presents the contract theory, mechanism design, and general equilibrium theory necessary for an understanding of a variety of recent innovations: crypto currencies, digital assets; intermediation through digital big techs; central bank digital currency; and decentralized finance (DeFi) versus centralized exchange and contract platforms. Three broad themes: 1) Take stock of new technologies' characteristic features (distributed ledgers and blockchain, e-transfers, smart contacts, and encryption); 2) Translate these features into formal language; 3) Inform normative questions: Should we delegate programmable contacts to the private sector and the role of public authorities.
Consult R. Townsend
14.13 Psychology and Economics
Subject meets with 14.131
Prereq: 14.01
U (Fall)
4-0-8 units. HASS-S
Introduces the theoretical and empirical literature of behavioral economics. Examines important and systematic departures from the standard models in economics by incorporating insights from psychology and other social sciences. Covers theory and evidence on time, risk, and social preferences; beliefs and learning; emotions; limited attention; and frames, defaults, and nudges. Studies applications to many different areas, such as credit card debt, procrastination, retirement savings, addiction, portfolio choice, poverty, labor supply, happiness, and government policy. Students participate in surveys and experiments in class, review evidence from lab experiments, examine how the results can be integrated into models, and test models using field and lab data. Students taking graduate version complete additional assignments.
F. Schilbach
14.130 Reading Economic Theory
Prereq: 14.121 and 14.451
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: G (Fall)
2-0-10 units
Can be repeated for credit.
Class will read and discuss current research in economic theory with a focus on game theory, decision theory, and behavioral economics. Students will be expected to make one presentation and to read and post comments on every paper by the day before the paper is presented. Permission of the instructor required, and auditors are not allowed.
D. Fudenberg
14.131 Psychology and Economics
Subject meets with 14.13
Prereq: 14.01
G (Fall)
4-0-8 units
Introduces the theoretical and empirical literature of behavioral economics. Examines important and systematic departures from the standard models in economics by incorporating insights from psychology and other social sciences. Covers theory and evidence on time, risk, and social preferences; beliefs and learning; emotions; limited attention; and frames, defaults, and nudges. Studies applications to many different areas, such as credit card debt, procrastination, retirement savings, addiction, portfolio choice, poverty, labor supply, happiness, and government policy. Students participate in surveys and experiments in class, review evidence from lab experiments, examine how the results can be integrated into models, and test models using field and lab data. Students taking graduate version complete additional assignments.
F. Schilbach
14.137[J] Psychology and Economics
Same subject as 9.822[J]
Prereq: None
G (Spring)
4-0-8 units
Examines "psychology appreciation" for economics students. Aims to enhance knowledge and intuition about psychological processes in areas relevant to economics. Increases understanding of psychology as an experimental discipline, with its own distinct rules and style of argument. Topics include self-knowledge, cognitive dissonance, self-deception, emotions, social norms, self-control, learning, mental accounting, memory, individual and group behavior, and some personality and psycho-analytic models. Within each of these topics, we showcase effective and central experiments and discuss their role in the development of psychological theory. Term paper required.
D. Prelec
14.147 Topics in Game Theory
Prereq: 14.126
G (Fall)
4-0-8 units
Advanced subject on topics of current research interest.
D. Fudenberg
14.15[J] Networks
Same subject as 6.3260[J]
Subject meets with 14.150
Prereq: 6.3700 or 14.30
U (Spring)
4-0-8 units. HASS-S
Highlights common principles that permeate the functioning of diverse technological, economic and social networks. Utilizes three sets of tools for analyzing networks -- random graph models, optimization, and game theory -- to study informational and learning cascades; economic and financial networks; social influence networks; formation of social groups; communication networks and the Internet; consensus and gossiping; spread and control of epidemics; control and use of energy networks; and biological networks. Students taking graduate version complete additional assignments.
A. Wolitzky
14.150 Networks
Subject meets with 6.3260[J], 14.15[J]
Prereq: 6.3700 or 14.300
G (Spring)
4-0-8 units
Highlights common principles that permeate the functioning of diverse technological, economic and social networks. Utilizes three sets of tools for analyzing networks -- random graph models, optimization, and game theory -- to study informational and learning cascades; economic and financial networks; social influence networks; formation of social groups; communication networks and the Internet; consensus and gossiping; spread and control of epidemics; control and use of energy networks; and biological networks. Students taking graduate version complete additional assignments.
A. Wolitzky
14.16 Strategy and Information
Subject meets with 14.161
Prereq: 14.01 or permission of instructor
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: U (Spring)
4-0-8 units. HASS-S
Covers modern applications of game theory where incomplete information plays an important role. Applications include bargaining, auctions, global games, market design, information design, and network economics. Students taking graduate version complete additional assignments.
M. Yildiz
14.160 Behavioral Economics
Prereq: 14.122
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: G (Spring)
4-0-8 units
Covers recent theory and empirical evidence in behavioral economics. Topics include deviations from the neoclassical model in terms of (i) preferences (present bias, reference dependence, social preferences), (ii) beliefs (overconfidence, projection bias), and (iii) decision-making (cognition, attention, framing, persuasion), as well as (iv) market reactions to such deviations. Applications will cover a large range of fields, including labor and public economics, industrial organization, health economics, finance, and development economics.
A. Banerjee, F. Schilbach
14.161 Strategy and Information
Subject meets with 14.16
Prereq: 14.01 or permission of instructor
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: G (Spring)
4-0-8 units
Covers modern applications of game theory where incomplete information plays an important role. Applications include bargaining, auctions, global games, market design, information design, and network economics. Students taking graduate version complete additional assignments.
M. Yildiz
14.163 Algorithms and Behavioral Science (New)
Prereq: (14.122 and 14.381) or permission of instructor
G (Spring)
4-0-8 units
Examines algorithms and their interaction with human cognition. Provides an overview of supervised learning as it relates to econometrics and economic applications. Discusses using algorithms to better understand people, using algorithms to improve human judgment, and using understanding of humans to better design algorithms. Prepares economics PhD students to conduct research in the field.
S. Mullainathan, A. Rambachan
14.18 Mathematical Economic Modeling
Prereq: 14.04, 14.12, 14.15[J], or 14.19
U (Spring)
4-0-8 units. HASS-S
Guides students through the process of developing and analyzing formal economic models and effectively communicating their results. Topics include decision theory, game theory, voting, and matching. Instruction and practice in oral and written communication provided. Prior coursework in microeconomic theory and/or proof-based mathematics required. Limited to 18 students.
Consult Department Headquarters
14.19 Market Design
Prereq: 14.01
U (Fall)
4-0-8 units. HASS-S
Covers the design and operation of organized markets, building on ideas from microeconomic and game theory. Topics may include mechanism design, auctions, matching markets, and other resource allocation problems.
P. Pathak
14.191 Independent Research Paper
Prereq: Permission of instructor
G (Fall, IAP, Spring, Summer)
0-12-0 units
Can be repeated for credit.
Under supervision of a faculty member approved by Graduate Registration Officer, student writes a substantial, probably publishable research paper. Must be completed by the end of a student's second year to satisfy the departmental minor requirement.
Staff
14.192 Advanced Research and Communication
Prereq: 14.124, 14.382, and 14.454
G (Fall, IAP, Spring)
2-4-6 units
Can be repeated for credit.
Guides second-year Economics PhD students through the process of conducting and communicating economic research. Students choose topics for research projects, develop research strategies, carry out analyses, and write and present research papers. Limited to second year Economics PhD students.
Consult Department Headquarters
14.193 Advanced Seminar in Economics
Prereq: 14.121 and 14.451
G (Fall, Spring, Summer)
Units arranged
Can be repeated for credit.
Reading and discussion of current topics in economics. Open to advanced graduate students by arrangement with individual members of the staff.
Consult Department headquarters
14.195 Reading Seminar in Economics
Prereq: 14.121
G (Fall, Spring, Summer)
Units arranged [P/D/F]
Can be repeated for credit.
Reading and discussion of current topics in economics. Open to advanced graduate students by arrangement with individual members of the staff.
Staff
14.197 Independent Research
Prereq: None
G (Fall, IAP, Spring, Summer)
Units arranged [P/D/F]
Can be repeated for credit.
Under supervision of a faculty member approved by Graduate Registration Officer, student conducts independent research.
Staff
14.198, 14.199 Teaching Introductory Economics
Prereq: None
G (Fall, Spring)
2-0-2 units
Can be repeated for credit.
Required of teaching assistants in introductory economics (14.01 and 14.02), under supervision of the faculty member in charge of the subject.
14.198: J. Gruber, S. Ellison. 14.199: M. Beraja, R. Caballero
14.281 Contract Economics
Prereq: 14.124 or permission of instructor
G (Fall)
4-0-8 units
Covers theoretical research on contracts in static as well as dynamic settings. Topics include agency theory, mechanism design, incomplete contracting, information design and costly information acquisition.
I. Ball, S. Morris
Industrial Organization
14.20 Industrial Organization: Competitive Strategy and Public Policy
Subject meets with 14.200
Prereq: 14.01
U (Fall)
4-0-8 units. HASS-S
Analyzes the current debate over the rise of monopolies, the strategic behavior and performance of firms in imperfectly competitive markets, and the role of competition policy. Topics include monopoly power; pricing, product choice, and innovation decisions by firms in oligopoly markets; static and dynamic measurement of market performance; and incentives in organizations. Requires regular participation in class discussion and teamwork in a competitive strategy game. Students taking graduate version complete additional assignments.
N. Rose
14.200 Industrial Organization: Competitive Strategy and Public Policy
Subject meets with 14.20
Prereq: 14.01
G (Fall)
4-0-8 units
Analyzes the current debate over the rise of monopolies, the strategic behavior and performance of firms in imperfectly competitive markets, and the role of competition policy. Topics include monopoly power; pricing, product choice, and innovation decisions by firms in oligopoly markets; static and dynamic measurement of market performance; and incentives in organizations. Requires regular participation in class discussion and teamwork in a competitive strategy game. Students taking graduate version complete additional assignments.
N. Rose
14.27 Economics and E-Commerce
Subject meets with 14.270
Prereq: 14.01 and (6.3700 or 14.30)
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: U (Spring)
4-0-8 units. HASS-S
Uses theoretical economic models and empirical evidence to help understand the growth and future of e-commerce. Economic models help frame class discussions of, among other topics, content provision, privacy, piracy, sales taxation, group purchasing, price search, and advertising on the internet. Empirical project and paper required. Students taking graduate version complete additional assignments.
S. Ellison
14.270 Economics and E-Commerce
Subject meets with 14.27
Prereq: 14.01 and (6.3700 or 14.30)
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: G (Spring)
4-0-8 units
Uses theoretical economic models and empirical evidence to help understand the growth and future of e-commerce. Economic models help frame class discussions of, among other topics, content provision, privacy, piracy, sales taxation, group purchasing, price search, and advertising on the internet. Empirical project and paper required. Students taking graduate version complete additional assignments.
S. Ellison
14.271 Industrial Organization I
Prereq: None. Coreq: 14.122 and 14.381
G (Fall)
5-0-7 units
Covers theoretical and empirical work dealing with the structure, behavior, and performance of firms and markets and core issues in antitrust. Topics include: the organization of the firm, monopoly, price discrimination, oligopoly, and auctions. Theoretical and empirical work are integrated in each area.
G. Ellison
14.272 Industrial Organization II
Prereq: 14.271
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: G (Spring)
5-0-7 units
Continuation of 14.271. Focuses on government interventions in monopoly and oligopoly markets, and addresses both competition and regulatory policy. Topics include horizontal merger policy and demand estimation, vertical integration and vertical restraints, and the theory and practice of economic regulation. Applications include the political economy of regulation; the performance of economic regulation; deregulation in sectors including electric power, transportation, and financial services; and pharmaceutical and environmental regulation in imperfectly competitive product markets.
N. Rose, M. Whinston
14.273 Advanced Topics in Industrial Organization
Prereq: 14.271
G (Spring)
5-0-7 units
Empirical analysis of theoretically derived models of market behavior. Varied topics include demand estimation, differentiated products, production functions, analysis of market power, entry and exit, vertical relationships, auctions, matching markets, network externalities, dynamic oligopoly, moral hazard and adverse selection. Discussion will focus on methodological issues, including identification, estimation, counter-factual analysis and simulation techniques.
N. Agarwal, T. Salz
Organizational Economics
14.26[J] Organizational Economics
Same subject as 15.039[J]
Subject meets with 14.260
Prereq: 14.01
U (Spring)
4-0-8 units. HASS-S
Provides a rigorous, but not overly technical introduction to the economic theory of organization together with a varying set of applications. Addresses incentives, control, relationships, decision processes, and organizational culture and performance. Introduces selected fundamentals of game theory. Students taking graduate version complete additional assignments. Limited to 60.
C. Angelucci
14.260 Organizational Economics
Subject meets with 14.26[J], 15.039[J]
Prereq: None
G (Spring)
4-0-8 units
Provides a rigorous, but not overly technical introduction to the economic theory of organization together with a varying set of applications. Addresses incentives, control, relationships, decision processes, and organizational culture and performance. Introduces selected fundamentals of game theory. Students taking graduate version complete additional assignments. Limited to 60.
C. Angelucci
14.282 Introduction to Organizational Economics
Prereq: 14.124
G (Fall)
5-0-7 units
Begins with survey of contract theory for organizational economists, then introduces the main areas of the field, including the boundary of the firm; decision-making, employment, structures and processes in organizations; and organizations other than firms.
C. Angelucci, R. Gibbons
14.283 Advanced Topics in Organizational Economics I
Prereq: 14.282
G (Spring; first half of term)
2-0-4 units
Builds on the work done in 14.282 to develop more in-depth analysis of topics in the field.
R. Gibbons
14.284 Advanced Topics in Organizational Economics II
Prereq: 14.282
G (Spring; second half of term)
2-0-4 units
Builds on the work done in 14.282 to develop more in-depth analysis of topics in the field.
C. Angelucci
Statistics and Econometrics
14.30 Introduction to Statistical Methods in Economics
Subject meets with 14.300
Prereq: Calculus II (GIR)
U (Fall)
4-0-8 units. REST
Self-contained introduction to probability and statistics with applications in economics and the social sciences. Covers elements of probability theory, statistical estimation and inference, regression analysis, causal inference, and program evaluation. Couples methods with applications and with assignments involving data analysis. Uses basic calculus and matrix algebra. Students taking graduate version complete additional assignments. May not count toward HASS requirement.
A. Abadie
14.300 Introduction to Statistical Methods in Economics
Subject meets with 14.30
Prereq: Calculus II (GIR)
G (Fall)
4-0-8 units
Self-contained introduction to probability and statistics with applications in economics and the social sciences. Covers elements of probability theory, statistical estimation and inference, regression analysis, causal inference, and program evaluation. Couples methods with applications and with assignments involving data analysis. Uses basic calculus and matrix algebra. Students taking graduate version complete additional assignments.
A. Abadie
14.310 Data Analysis for Social Scientists
Prereq: None
G (Spring)
Not offered regularly; consult department
4-0-8 units
Introduces methods for harnessing data to answer questions of cultural, social, economic, and policy interest. Presents essential notions of probability and statistics. Covers techniques in modern data analysis: regression and econometrics, prediction, design of experiment, randomized control trials (and A/B testing), machine learning, data visualization, analysis of network data, and geographic information systems. Projects include analysis of data with a written description and interpretation of results; may involve gathering of original data or use of existing data sets. Applications drawn from real world examples and frontier research. Instruction in use of the statistical package R. Students taking graduate version complete additional assignments.
Consult E. Duflo
14.32 Econometric Data Science
Subject meets with 14.320
Prereq: 14.30
U (Fall, Spring)
4-4-4 units. Institute LAB
Introduces regression and other tools for causal inference and descriptive analysis in empirical economics. Topics include analysis of randomized experiments, instrumental variables methods and regression discontinuity designs, differences-in-differences estimation, and regression with time series data. Develops the skills needed to conduct — and critique — empirical studies in economics and related fields. Empirical applications are drawn from published examples and frontier research. Familiarity with statistical programming languages is helpful. Students taking graduate version complete an empirical project leading to a short paper. Limited to 70 total for versions meeting together.
A. Mikusheva, J. Angrist
14.320 Econometric Data Science
Subject meets with 14.32
Prereq: 14.300
G (Fall, Spring)
4-4-4 units
Introduces regression and other tools for causal inference and descriptive analysis in empirical economics. Topics include analysis of randomized experiments, instrumental variables methods and regression discontinuity designs, differences-in-differences estimation, and regress with time series data. Develops the skills needed to conduct — and critique — empirical studies in economics and related fields. Empirical applications are drawn from published examples and frontier research. Familiarity with statistical programming languages is helpful. Students taking graduate version complete an empirical project leading to a short paper. Limited to 70 total for versions meeting together.
A. Mikusheva, J. Angrist
14.33 Research and Communication in Economics: Topics, Methods, and Implementation
Prereq: 14.32 and (14.01 or 14.02)
U (Fall, Spring)
3-4-5 units. HASS-S
Exposes students to the process of conducting independent research in empirical economics and effectively communicating the results of the research. Emphasizes econometric analysis of an assigned economic question and culminates in each student choosing an original topic, performing appropriate analysis, and delivering oral and written project reports. Limited to 20 per section.
Staff
14.35 Why Markets Fail (New)
Prereq: 14.04, 14.12, 14.15[J], or 14.19
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: U (Fall)
4-0-8 units. HASS-S
Guides students through the process of developing and communicating economic and data analysis. Discusses topics in which markets fail to provide efficient outcomes or economic opportunity. Topics include health insurance, intergenerational mobility, discrimination, climate change, and more. Instruction and practice in oral and written communication provided. Key course activities include the writing of a term paper conducting original economic analysis and an in-class slide presentation of the work. Limited to 18.
N. Hendren
14.36 Advanced Econometrics
Subject meets with 14.387
Prereq: 14.32 or permission of instructor
U (Fall)
4-0-8 units
Advanced treatment of the core empirical strategies used to answer causal questions in applied microeconometric research. Covers extensions and innovations relating to econometric applications of regression, machine learning, instrumental variables, differences-in-differences and event-study models, regression discontinuity designs, synthetic controls, and statistical inference. Students taking graduate version complete an additional assignment.
J. Angrist
14.38 Inference on Causal and Structural Parameters Using ML and AI
Subject meets with 14.388
Prereq: 14.32
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: U (Spring)
4-0-8 units
Provides an applied treatment of modern causal inference with high-dimensional data, focusing on empirical economic problems encountered in academic research and the tech industry. Formulates problems in the languages of structural equation modeling and potential outcomes. Presents state-of-the-art approaches for inference on causal and structural parameters, including de-biased machine learning, synthetic control methods, and reinforcement learning. Introduces tools from machine learning and deep learning developed for prediction purposes, and discusses how to adapt them to learn causal parameters. Emphasizes the applied and practical perspectives. Requires knowledge of mathematical statistics and regression analysis and programming experience in R or Python.
V. Chernozhukov
14.380 Statistical Method in Economics
Prereq: 14.32 or permission of instructor
G (Fall; first half of term)
3-0-3 units
Introduction to probability and statistics as background for advanced econometrics. Covers elements of probability theory, sampling theory, asymptotic approximations, hypothesis testing, and maximum-likelihood methods. Illustrations from economics and application of these concepts to economic problems. Limited to 40 PhD students.
A. Mikusheva
14.381 Estimation and Inference for Linear Causal and Structural Models
Prereq: 14.380
G (Fall; second half of term)
3-0-3 units
Explains basic econometric ideas and methods, illustrating with empirical applications. Causal inference is emphasized and examples of economic structural models are given. Topics include randomized trials, regression, including discontinuity designs and diffs-in-diffs, and instrumental variables, including local average treatment effects. Basic asymptotic theory for regression is covered and robust standard errors and statistical inference methods are given. Restricted to PhD students from Courses 14 and 15. Instructor approval required for all others.
W. Newey
14.382 Econometrics
Prereq: 14.381 or permission of instructor
G (Spring)
5-0-7 units
Covers key models as well as identification and estimation methods used in modern econometrics. Presents modern ways to set up problems and do better estimation and inference than the current empirical practice. Introduces generalized method of moments and the method of M-estimators in addition to more modern versions of these methods dealing with important issues, such as weak identification or biases arising in high dimensions. Also discusses the bootstrap and explores very high dimensional formulations, or "big data." Students gain practical experience by applying the methods to real data sets. Enrollment limited.
V. Chernozhukov
14.384 Time Series Analysis
Prereq: 14.382 or permission of instructor
G (Fall)
5-0-7 units
Studies theory and application of time series methods in econometrics, including spectral analysis, estimation with stationary and non-stationary processes, VARs, factor models, unit roots, cointegration, and Bayesian methods. Enrollment limited.
A. Mikusheva
14.385 Nonlinear Econometric Analysis
Prereq: 14.382 or permission of instructor
G (Fall)
5-0-7 units
Develops a full understanding of and ability to apply micro-econometric models and methods. Topics include extremum estimators, including minimum distance and simulated moments, identification, partial identification, sensitivity analysis, many weak instruments, nonlinear panel data, de-biased machine learning, discrete choice models, nonparametric estimation, quantile regression, and treatment effects. Methods are illustrated with economic applications. Enrollment limited.
A. Abadie, W. Newey
14.386 New Econometric Methods
Prereq: 14.382
G (Spring)
4-0-8 units
Exposes students to the frontier of econometric research. Includes fundamental topics such as empirical processes, semiparametric estimation, nonparametric instrumental variables, inference under partial identification, large-scale inference, empirical Bayes, and machine learning methods. Other topics vary from year to year, but can include empirical likelihood, weak identification, and networks.
A. Abadie, W. Newey
14.387 Applied Econometrics
Subject meets with 14.36
Prereq: 14.381 or permission of instructor
G (Fall)
4-0-8 units
Advanced treatment of the core empirical strategies used to answer causal questions in applied microeconometric research. Covers extensions and innovations relating to econometric applications of regression, machine learning, instrumental variables, differences-in-differences and event-study models, regression discontinuity designs, synthetic controls, and statistical inference. Students taking the graduate version complete an additional assignment.
J. Angrist
14.388 Inference on Causal and Structural Parameters Using ML and AI
Subject meets with 14.38
Prereq: 14.381
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: G (Spring)
4-0-8 units
Provides an applied treatment of modern causal inference with high-dimensional data, focusing on empirical economic problems encountered in academic research and the tech industry. Formulates problems in the languages of structural equation modeling and potential outcomes. Presents state-of-the-art approaches for inference on causal and structural parameters, including de-biased machine learning, synthetic control methods, and reinforcement learning. Introduces tools from machine learning and deep learning developed for prediction purposes, and discusses how to adapt them to learn causal parameters. Emphasizes the applied and practical perspectives. Requires knowledge of mathematical statistics and regression analysis and programming experience in R or Python.
V. Chernozhukov
14.391 Workshop in Economic Research
Prereq: 14.124 and 14.454
G (Fall)
2-0-10 units
Can be repeated for credit.
Develops research ability of students through intensive discussion of dissertation research as it proceeds, individual or group research projects, and critical appraisal of current reported research. Workshops divided into various fields, depending on interest and size.
Staff
14.392 Workshop in Economic Research
Prereq: 14.124 and 14.454
G (Spring)
2-0-10 units
Can be repeated for credit.
Develops research ability of students through intensive discussion of dissertation research as it proceeds, individual or group research projects, and critical appraisal of current reported research. Workshops divided into various fields, depending on interest and size.
Staff
14.399 Seminar in Data Economics and Development Policy
Prereq: Permission of instructor
G (Spring)
2-0-10 units
Group study of current topics in development policy and research. Includes student presentations and invited speakers. Restricted to DEDP MASc students.
S. Ellison
National Income and Finance
14.41 Public Finance and Public Policy
Subject meets with 14.410
Prereq: 14.01
U (Spring)
4-0-8 units. HASS-S
Explores the role of government in the economy, applying tools of basic microeconomics to answer important policy questions such as government response to global warming, school choice by K-12 students, Social Security versus private retirement savings accounts, government versus private health insurance, setting income tax rates for individuals and corporations. Students taking the graduate version complete additional assignments.
J. Gruber
14.410 Public Finance and Public Policy
Subject meets with 14.41
Prereq: 14.01
G (Spring)
4-0-8 units
Explores the role of government in the economy, applying tools of basic microeconomics to answer important policy questions such as government response to global warming, school choice by K-12 students, Social Security versus private retirement savings accounts, government versus private health insurance, setting income tax rates for individuals and corporations. Students taking the graduate version complete additional assignments.
J. Gruber
14.416[J] Asset Pricing
Same subject as 15.470[J]
Prereq: None
G (Fall)
4-0-8 units
See description under subject 15.470[J].
L. Schmidt, L. Mota
14.42 Environmental Policy and Economics
Subject meets with 14.420
Prereq: 14.01
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: U (Spring)
4-0-8 units. HASS-S
Introduces key concepts and recent advances in environmental economics, and explores their application to environmental policy questions. Topics include market efficiency and market failure, methods for valuing the benefits of environmental quality, the proper role of government in the regulation of the environment, environmental policy design, and implementation challenges. Considers international aspects of environmental policy as well, including the economics of climate change, trade and the environment, and environmental challenges in developing countries. Students taking graduate version complete additional assignments.
Consult Department Headquarters
14.420 Environmental Policy and Economics
Subject meets with 14.42
Prereq: 14.01
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: G (Spring)
4-0-8 units
Introduces students to key concepts and recent advances in environmental economics, and explores their application to environmental policy questions. Topics include market efficiency and market failure, methods for valuing the benefits of environmental quality, the proper role of government in the regulation of the environment, environmental policy design and implementation challenges. Also considers international aspects of environmental policy including the economics of climate change, trade and the environment and environmental challenges in developing countries. Students taking graduate version complete additional assignments.
Consult Department Headquarters
14.43[J] Economics of Energy, Innovation, and Sustainability
Same subject as 15.0201[J]
Prereq: 14.01 or 15.0111
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: U (Fall)
3-0-9 units. HASS-S
Credit cannot also be received for 15.020
See description under subject 15.0201[J].
J. Li
14.44[J] Energy Economics and Policy
Same subject as 15.037[J]
Prereq: 14.01 or 15.0111
U (Spring)
4-0-8 units. HASS-S
Credit cannot also be received for 14.444[J], 15.038[J]
Analyzes business and public policy issues in energy markets and in the environmental markets to which they are closely tied. Examines the economic determinants of industry structure and evolution of competition among firms in these industries. Investigates successful and unsuccessful strategies for entering new markets and competing in existing markets. Industries studied include oil, natural gas, coal, electricity, and transportation. Topics include climate change and environmental policy, the role of speculation in energy markets, the political economy of energy policies, and market power and antitrust. Two team-based simulation games, representing the world oil market and a deregulated electricity market, act to cement the concepts covered in lecture. Students taking graduate version complete additional assignments. Limited to 60.
C. Knittel
14.440[J] Advanced Corporate Finance
Same subject as 15.473[J]
Prereq: None
G (Spring)
3-0-9 units
See description under subject 15.473[J]. Primarily for doctoral students in finance, economics, and accounting.
A. Schoar
14.441[J] Corporate Finance
Same subject as 15.471[J]
Prereq: None
G (Spring)
3-0-9 units
See description under subject 15.471[J].
A. Schoar, D. Thesmar
14.442[J] Advanced Asset Pricing
Same subject as 15.472[J]
Prereq: None
G (Fall)
3-0-9 units
See description under subject 15.472[J]. Primarily for doctoral students in finance, economics, and accounting.
J. Parker
14.444[J] Energy Economics and Policy
Same subject as 15.038[J]
Prereq: 14.01 or 15.0111
G (Spring)
4-0-8 units
Credit cannot also be received for 14.44[J], 15.037[J]
Analyzes business and public policy issues in energy markets and in the environmental markets to which they are closely tied. Examines the economic determinants of industry structure and evolution of competition among firms in these industries. Investigates successful and unsuccessful strategies for entering new markets and competing in existing markets. Industries studied include oil, natural gas, coal, electricity, and transportation. Topics include climate change and environmental policy, the role of speculation in energy markets, the political economy of energy policies, and market power and antitrust. Two team-based simulation games, representing the world oil market and a deregulated electricity market, act to cement the concepts covered in lecture. Students taking graduate version complete additional assignments. Limited to 60.
C. Knittel
14.448[J] Current Topics in Finance
Same subject as 15.474[J]
Prereq: None
G (Spring)
3-0-9 units
Can be repeated for credit.
See description under subject 15.474[J]. Primarily for doctoral students in accounting, economics, and finance.
Consult J. Alton
14.449[J] Current Research in Financial Economics
Same subject as 15.475[J]
Prereq: Permission of instructor
G (Fall, IAP, Spring, Summer)
3-0-3 units
Can be repeated for credit.
See description under subject 15.475[J]. Restricted to doctoral students.
Consult J. Alton
14.451 Dynamic Optimization Methods with Applications
Prereq: 14.06 and permission of instructor
G (Fall; first half of term)
3-0-3 units
Provides an introduction to dynamic optimization methods, including discrete-time dynamic programming in non-stochastic and stochastic environments, and continuous time methods including the Pontryagin maximum principle. Applications may include the Ramsey model, irreversible investment models, and consumption choices under uncertainty. Enrollment limited.
C. Wolf
14.452 Economic Growth
Prereq: 14.451 and permission of instructor
G (Fall; second half of term)
3-0-3 units
Introduces the sources and modeling of economic growth and income differences across nations. Topics include an introduction to dynamic general equilibrium theory, the neoclassical growth model, overlapping generations, determinants of technological progress, endogenous growth models, measurement of technological progress, the role of human capital in economic growth, and growth in a global economy. Enrollment limited.
D. Acemoglu
14.453 Economic Fluctuations
Prereq: 14.452 and permission of instructor
G (Spring; first half of term)
3-0-3 units
Investigation of why aggregate economic activity fluctuates, and the role of policy in affecting fluctuations. Topics include the link between monetary policy and output, the economic cost of aggregate fluctuations, the costs and benefits of price stability, and the role of central banks. Introduction to real business cycle and new Keynesian models. Enrollment limited.
I. Werning
14.454 Economic Crises
Prereq: 14.453 and permission of instructor
G (Spring; second half of term)
3-0-3 units
Provides an overview of models of the business cycle caused by financial markets' frictions and shocks. Topics include credit crunch, collateral shocks, bank runs, contagion, speculative bubbles, credit booms, leverage, safe asset shortages, capital flows and sudden stops. Enrollment limited.
R. Caballero
14.461 Advanced Macroeconomics I
Prereq: 14.122 and 14.452
G (Fall)
5-0-7 units
Advanced subject in macroeconomics that seeks to bring students to the research frontier. Topics vary from year to year, covering a wide spectrum of classical and recent research. Topics may include business cycles, optimal monetary and tax policy, monetary economics, banking, and financial constraints on investment and incomplete markets.
M. Beraja, I. Werning
14.462 Advanced Macroeconomics II
Prereq: 14.461
G (Spring)
5-0-7 units
Topics vary from year to year. Often includes coordination failures; frictions in beliefs, such as rational inattention, higher-order uncertainty, certain forms of bounded rationality, heterogeneous beliefs, and ambiguity; implications for business cycles, asset markets, and policy; financial frictions and obstacles to trade; intermediation; liquidity; safe assets; global imbalances; financial crises; and speculation.
Consult Department Headquarters
14.47[J] Global Energy: Politics, Markets, and Policy
Same subject as 11.167[J], 15.2191[J], 17.399[J]
Prereq: None
U (Spring)
Not offered regularly; consult department
3-0-9 units. HASS-S
Credit cannot also be received for 11.267[J], 15.219[J]
See description under subject 15.2191[J]. Preference to juniors, seniors, and Energy Minors.
Staff
14.471 Public Economics I
Prereq: 14.04
G (Fall)
4-0-8 units
Theory and evidence on government taxation policy. Topics include tax incidence; optimal tax theory; the effect of taxation on labor supply and savings; taxation and corporate behavior; and tax expenditure policy.
J. Poterba, I. Werning
14.472 Public Economics II
Prereq: 14.471
G (Spring)
3-0-9 units
Focuses on government expenditures and policies designed to correct market failures and/or redistribute resources. Key topics include theoretical and empirical analysis of insurance market failures, the optimal design of social insurance programs, and the design of redistributive programs.
A. Finkelstein
14.475 Environmental Economics
Prereq: None
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: G (Spring)
4-0-8 units
Theory and evidence on environmental externalities and regulatory, tax and other government responses to problems of market failure. Topics include cost-benefit analysis; measurement of the benefits of non-market goods; evaluation of the impacts of regulation; and international environmental issues including the economics of climate change and trade and the environment.
Consult Department Headquarters
International, Interregional, and Urban Economics
14.54 International Trade
Subject meets with 14.540
Prereq: 14.01
U (Fall)
4-0-8 units. HASS-S
Provides an introduction to theoretical and empirical topics in international trade. Offers a brief history of globalization. Introduces the theory of comparative advantage and discusses its implications for international specialization and wage inequality. Studies the determinants and consequences of trade policy, and analyzes the consequences of immigration and foreign direct investment. Students taking graduate version complete additional assignments.
A. Costinot
14.540 International Trade
Subject meets with 14.54
Prereq: 14.01
G (Fall)
4-0-8 units
Provides an introduction to theoretical and empirical topics in international trade. Offers a brief history of globalization. Introduces the theory of comparative advantage and discusses its implications for international specialization and wage inequality. Studies the determinants and consequences of trade policy, and analyzes the consequences of immigration and foreign direct investment. Students taking graduate version complete additional assignments.
A. Costinot
14.581 International Economics I
Prereq: 14.04
G (Fall)
5-0-7 units
Covers a variety of topics, both theoretical and empirical, in international trade, international macroeconomics, and economic geography. Focuses on general equilibrium analysis in neoclassical economies. Considers why countries and regions trade, and what goods they trade; impediments to trade, and why some countries deliberately erect policy to impede; and implications of openness for growth. Also tackles normative issues, such as whether trade openness is beneficial, whether there are winners and losers from trade and, if so, how they can possibly be identified.
A. Costinot, D. Donaldson
14.582 International Economics II
Prereq: 14.06
G (Spring)
5-0-7 units
Building on topics covered in 14.581, revisits a number of core questions in international trade, international macroeconomics, and economic geography in the presence of increasing returns, imperfect competition, and other distortions. Stresses their connection to both macro and micro (firm-level) data for questions related to trade policy, inequality, industrial policy, growth, and the location of economic activities. Focuses on both theoretical models, empirical findings, and the challenging task of putting those two together.
D. Atkin, A. Costinot
Labor Economics and Industrial Relations
14.64 Labor Economics and Public Policy
Subject meets with 14.640
Prereq: 14.30 or permission of instructor
Acad Year 2023-2024: U (Spring)
Acad Year 2024-2025: Not offered
4-0-8 units. HASS-S
Provides an introduction to the labor market, how it functions, and the important role it plays in people's lives. Topics include supply and demand, minimum wages, labor market effects of social insurance and welfare programs, the collective bargaining relationship, discrimination, human capital, and unemployment. Completion of or concurrent enrollment in 14.03 or 14.04, and 14.32 recommended. Students taking graduate version complete additional assignments.
J. Angrist
14.640 Labor Economics and Public Policy
Subject meets with 14.64
Prereq: 14.300 or permission of instructor
G (Spring)
4-0-8 units
Provides an introduction to the labor market, how it functions, and the important role it plays in people's lives. Topics include supply and demand, minimum wages, labor market effects of social insurance and welfare programs, the collective bargaining relationship, discrimination, human capital, and unemployment. Completion of or concurrent enrollment in 14.03 or 14.04, and 14.32 recommended. Students taking graduate version complete additional assignments.
J. Angrist
14.661 Labor Economics I
Subject meets with 14.661A
Prereq: 14.32 and (14.03 or 14.04)
G (Fall)
5-0-7 units
A systematic development of the theory of labor supply, labor demand, and human capital. Topics include wage and employment determination, turnover, search, immigration, unemployment, equalizing differences, and institutions in the labor market. Particular emphasis on the interaction between theoretical and empirical modeling. No listeners.
D. Acemoglu, J. Angrist, P. Pathak
14.661A Labor Economics I
Subject meets with 14.661
Prereq: 14.32 and (14.03 or 14.04)
G (Fall)
5-0-7 units
Covers the same material as 14.661 but in greater depth. Additional assignments required. Limited to economics PhD students who wish to declare a major field in labor economics.
D. Acemoglu, J. Angrist, P. Pathak
14.662 Labor Economics II
Subject meets with 14.662A
Prereq: 14.32 and (14.03 or 14.04)
G (Spring)
5-0-7 units
Theory and evidence on the determinants of earnings levels, inequality, intergenerational mobility, skill demands, and employment structure. Particular focus on the determinants of worker- and firm-level productivity; and the roles played by supply, demand, institutions, technology and trade in the evolving distribution of income.
D. Autor, S. Jaeger
14.662A Labor Economics II
Subject meets with 14.662
Prereq: 14.32 and (14.03 or 14.04)
G (Spring)
5-0-7 units
Covers the same material as 14.662 but in greater depth. Additional assignments required. Limited to economics PhD students who wish to declare a major field in labor economics.
D. Autor, S. Jaeger
Economic History
14.70[J] Medieval Economic History in Comparative Perspective
Same subject as 21H.134[J]
Prereq: None
U (Spring)
3-0-9 units. HASS-S; CI-H
See description under subject 21H.134[J].
A. McCants
14.73 The Challenge of World Poverty
Prereq: None
U (Fall)
4-0-8 units. HASS-S; CI-H
Designed for students who are interested in the challenge posed by massive and persistent world poverty. Examines extreme poverty over time to see if it is no longer a threat, why some countries grow fast and others fall further behind, if growth or foreign aid help the poor, what we can do about corruption, if markets or NGOs should be left to deal with poverty, where to intervene, and how to deal with the disease burden and improve schools.
E. Duflo, F. Schilbach
Economic Development
14.74 Foundations of Development Policy
Subject meets with 14.740
Prereq: 14.01
U (Fall)
Not offered regularly; consult department
4-0-8 units. HASS-S
Explores the foundations of policy making in developing countries, with the goal of spelling out various policy options and quantifying the trade-offs between them. Topics include education, health, fertility, adoption of technological innovations, financial markets (credit, savings, and insurance), markets for land and labor, political factors, and international considerations (aid, trade, and multinational firms). Some basic familiarity with probability and/or statistics is useful for this class. Students taking graduate version complete additional assignments.
Consult Department Headquarters
14.740 Foundations of Development Policy
Subject meets with 14.74
Prereq: 14.01
G (Fall)
Not offered regularly; consult department
4-0-8 units
Explores the foundations of policy making in developing countries, with the goal of spelling out various policy options and quantifying the trade-offs between them. Topics include education, health, fertility, adoption of technological innovations, financial markets (credit, savings, and insurance), markets for land and labor, political factors, and international considerations (aid, trade, and multinational firms). Some basic familiarity with probability and/or statistics is useful for this class. Students taking graduate version complete additional assignments.
Consult Department Headquarters
14.75 Political Economy and Economic Development
Subject meets with 14.750
Prereq: 14.01
U (Spring)
4-0-8 units. HASS-S
Explores the relationship between political institutions and economic development, covering key theoretical issues as well as recent empirical evidence. Topics include corruption, voting, vote buying, the media, and war. Discusses not just what we know on these topics, but how we know it, covering how to craft a good empirical study or field experiment and how to discriminate between reliable and unreliable evidence. Some basic familiarity with probability and/or statistics is useful for this class. Students taking graduate version complete additional assignments.
A. Banerjee, B. Olken
14.750 Political Economy and Economic Development
Subject meets with 14.75
Prereq: 14.01
G (Spring)
4-0-8 units
Explores the relationship between political institutions and economic development, covering key theoretical issues as well as recent empirical evidence. Topics include corruption, voting, vote buying, the media, and war. Discusses not just what we know on these topics, but how we know it, covering how to craft a good empirical study or field experiment and how to discriminate between reliable and unreliable evidence. Some basic familiarity with probability and/or statistics is useful for this class. Students taking graduate version complete additional assignments.
A. Banerjee, B. Olken
14.76 Firms, Markets, Trade and Growth
Subject meets with 14.760
Prereq: 14.01 and (14.30 or permission of instructor)
U (Spring)
4-0-8 units. HASS-S
Examines how industrial development and international trade have brought about rapid growth and large-scale reductions in poverty for some developing countries, while globalization has simply increased inequality and brought little growth for others. Also considers why, in yet other developing countries, firms remain small-scale and have not integrated with global supply chains. Draws on both theoretical models and empirical evidence to better understand the reasons for these very different experiences and implications for policy. Students taking graduate version complete additional assignments.
D. Atkin, D. Donaldson
14.760 Firms, Markets, Trade and Growth
Subject meets with 14.76
Prereq: 14.01 and (14.30 or permission of instructor)
G (Spring)
4-0-8 units
Examines how industrial development and international trade have brought about rapid growth and large-scale reductions in poverty for some developing countries, while globalization has simply increased inequality and brought little growth for others. Also considers why, in yet other developing countries, firms remain small-scale and have not integrated with global supply chains. Draws on both theoretical models and empirical evidence to better understand the reasons for these very different experiences and implications for policy. Students taking graduate version complete additional assignments.
D. Atkin, D. Donaldson
14.770 Introduction to Collective Choice and Political Economy
Prereq: None
G (Fall)
4-0-8 units
Broad introduction to political economy. Covers topics from social choice theory to political agency models, including theories of voter turnout and comparison of political institutions.
D. Acemoglu, B. Olken
14.771 Development Economics: Microeconomic Issues
Prereq: 14.121 and 14.122
G (Fall)
5-0-7 units
A rigorous introduction to core micro-economic issues in economic development, focusing on both key theoretical contributions and empirical applications to understand both why some countries are poor and on how markets function differently in poor economies. Topics include human capital (education and health); labor markets; credit markets; land markets; firms; and the role of the public sector.
E. Duflo, B. Olken
14.772 Development Economics: Macroeconomics
Prereq: 14.121 and 14.451
G (Spring)
5-0-7 units
Emphasizes dynamic models of growth and development. Topics include migration, modernization, and technological change; static and dynamic models of political economy; the dynamics of income distribution and institutional change; firm structure in developing countries; development, transparency, and functioning of financial markets; privatization; and banks and credit market institutions in emerging markets. Examines innovative yet disruptive digital technologies, including blockchain, digital assets, crypto currency, distributed ledgers, and smart contracts.
D. Atkins, A. Banerjee, R. Townsend
14.773 Political Economy: Institutions and Development
Prereq: 14.121 and 14.451
G (Spring)
5-0-7 units
Economists and policymakers increasingly realize the importance of political institutions in shaping economic performance, especially in the context of understanding economic development. Work on the determinants of economic policies and institutions is in its infancy, but is growing rapidly. Subject provides an introduction to this area. Topics covered: the economic role of institutions; the effects of social conflict and class conflict on economic development; political economic determinants of macro policies; political development; theories of income distribution and distributional conflict; the efficiency effects of distributional conflict; the causes and consequences of corruption; the role of colonial history; and others. Both theoretical and empirical approaches discussed. Subject can be taken either as part of the Development Economics or the Positive Political Economy fields.
D. Acemoglu, A. Banerjee
14.78[J] Shaping the Future of Technology: From Early Agriculture to Artificial Intelligence
Same subject as 15.238[J]
Prereq: None
Acad Year 2023-2024: Not offered
Acad Year 2024-2025: U (Spring)
4-0-8 units. HASS-S; CI-H
Provides a framework for thinking about major technological transitions over the past 12,000 years as a means to explore paths to a better future. Discusses who gains or loses from innovation and who can shape the future of artificial intelligence, biotech, and other breakthroughs. Introduces major questions tackled by researchers and relevant to economic policy through faculty lectures, interactive events with prominent guests, and group work. Instruction and practice in oral and written communication provided.
D. Acemoglu, S. Johnson
14.THG Graduate Thesis
Prereq: Permission of instructor
G (Fall, IAP, Spring, Summer)
Units arranged
Can be repeated for credit.
Program of research and writing of thesis; to be arranged by the student with supervising committee.
Staff
14.THU Thesis
Prereq: 14.33
U (Fall, IAP, Spring, Summer)
Units arranged
Can be repeated for credit.
Program of research and writing of thesis.
Staff
14.UR Undergraduate Research
Prereq: 14.02
U (Fall, IAP, Spring, Summer)
Units arranged [P/D/F]
Can be repeated for credit.
Participation in research with an individual faculty member or research group, independent research or study under the guidance of a faculty member. Admission by arrangement with individual faculty member.
Consult D. Donaldson
14.URG Undergraduate Research
Prereq: 14.02
U (Fall, IAP, Spring, Summer)
Units arranged
Can be repeated for credit.
Participation in research with an individual faculty member or research group, independent research or study under the guidance of a faculty member. Admission by arrangement with individual faculty member.
Consult D. Donaldson
