The economics academic area includes faculty that study a broad range of topics in their discipline, including economic theory, industrial organization, labor economics, macroeconomics, econometrics, environmental economics, and international trade.

The economic faculty bring ideas from economic research (both their own and those from the broader community of economic scholars) to the classroom.

The group teaches principles of economics and statistics in managerial foundations classes, as well as applications of economics in classes on strategy, public policy, human resource management, global management, and other topics.

The rigorous application of economic principles permeates the MBA, Stanford MSx, and Executive Education curricula. The economics area extends its impact beyond Stanford by publishing, by educating PhD students, and by influencing public policy.

Recent Journal Articles in Economics

John E. Bistline, Stephen D. Comello, Anshuman Sahoo
Energy. May
2018, Vol. 151, Pages 211-225

Many irreversible long-run capital investments entail opportunities for managers to respond flexibly to changes in the economic environment. However, common levelized cost measures used to guide decision-making, such as the...

Xiang Zhang, Douglas E. Faries, Hu Li, James D. Stamey, Guido W. Imbens
Pharmacoepidemiology & Drug Safety . April
2018, Vol. 27, Issue 4, Pages 373-382

Purpose: Observational pharmacoepidemiological studies can provide valuable information on the effectiveness or safety of interventions in the real world, but one major challenge is the existence of unmeasured confounder(s). While many...

Susan Athey, Emilio Calvano, Joshua S. Gans
Management Science. April
2018, Vol. 64, Issue 4, Pages 1574-1590

We develop a model of advertising markets in an environment where consumers may switch (or “multi-home”) across publishers. Consumer switching generates inefficiency in the process of matching advertisers to consumers,...

Nikhil Agarwal, Paulo Somaini
Econometrica. March
2018, Vol. 86, Issue 2, Pages 391-444

Several school districts use assignment systems that give students an incentive to misrepresent their preferences. We find evidence consistent with strategic behavior in Cambridge. Such strategizing can complicate preference analysis....

Liran Einav, Chiara Farronato, Jonathan Levin, Neel Sundaresan
Journal of Political Economy. February
2018, Vol. 126, Issue 1, Pages 178-215

Auctions were very popular in the early days of internet commerce, but today online sellers mostly use posted prices. We model the choice between auctions and posted prices as a...

Ali Yurukoglu, Claire S.H. Lim
Journal of Political Economy. February
2018, Vol. 126, Issue 1

This paper quantitatively assesses time inconsistency, moral hazard, and political ideology in monopoly regulation of electricity distribution. We specify and estimate a dynamic model of utility regulation featuring investment and...

Eric Bettinger, Sten Ludvigsen, Mari Rege, Ingeborg F. Solli
Journal of Economic Behavior & Organization. February
2018, Vol. 146, Pages 1-15

Research by psychologists and economists demonstrates that many non-cognitive skills are malleable in both children and adolescents, but we have limited knowledge on what schools can do to foster these...

Edward Lazear, Kathryn Shaw
Journal of Labor Economics. January
2018, Vol. 36, Issue 1, Pages 1-12

It has been well documented that the dispersion of income within most countries has grown over time. Dispersion can be a reflection of some positive features of an economy, most notably,...

Stefan Bender, Nicholas A. Bloom, David Card, John Van Reenen, Stephanie Woter
Journal of Labor Economics. January
2018, Vol. 36, Issue 1, Pages 371-409

We study the relationship among productivity, management practices, and employee ability using German data combining management practices surveys with employees’ longitudinal earnings records. Including human capital reduces the association between...

Edward Lazear, Kathryn Shaw, Christopher T. Stanton
Journal of Labor Economics. January
2018, Vol. 36, Issue 1, Pages 133-181

Being hired into a job depends not only on one’s own skill but also on that of other applicants. When another able applicant applies, a well-suited worker may be forced...