Economics

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 Ameriks, Joseph Briggs, Andrew Caplin, Matthew Shapiro, Christopher Tonetti
Journal of Political Economy. June
2020, Vol. forthcoming

Older wealthholders spend down assets much more slowly than predicted by classic life-cycle models. This paper introduces health-dependent utility into a model with incomplete markets in which preferences for bequests,...

Susan Athey, Michael Luca
Journal of Economic Perspectives. December
2019, Vol. 33, Issue 1, Pages 209-230

As technology platforms have created new markets and new ways of acquiring information, economists have come to play an increasingly central role in tech companies-tackling problems such as platform design,...

Hunt Allcott, Rebecca Diamond, Jean-Pierre Dube, Jessie Handbury, Ilya Rahkovsky, Molly Schnell
The Quarterly Journal of Economics. November
2019, Vol. 134, Issue 4, Pages 1793-1844

We study the causes of “nutritional inequality”: why the wealthy eat more healthfully than the poor in the United States. Exploiting supermarket entry and household moves to healthier neighborhoods, we...

Chang-Tai Hsieh, Eric Hurst, Charles I. Jones, Pete Klenow
Econometrica. September
30 , 2019, Vol. 87, Issue 5

In 1960, 94 percent of doctors and lawyers were white men. By 2010, the fraction was just 62 percent. Similar changes in other highly‐skilled occupations have occurred throughout the U.S....

Christopher P. Chambers, Nicolas S. Lambert, Paul J. Healy
Games and Economic Behavior. September
2019, Vol. 117, Pages 322-341

Proper scoring rules incentivize truthful probability reports from risk-neutral individuals. For individuals with much more general preferences (including risk and ambiguity aversion) we use duality techniques to characterize the optimal...

Rebecca Diamond, Timothy James McQuade, Franklin Qian
American Economic Review. September
2019, Vol. 109, Issue 9, Pages 3365-3394

Using a 1994 law change, we exploit quasi-experimental variation in the assignment of rent control in San Francisco to study its impacts on tenants and landlords. Leveraging new data tracking...

Saumitra Jha, Moses Shayo
Econometrica. September
2019, Vol. 87, Issue 5, Pages 1561-1588

Can participation in financial markets lead individuals to re-evaluate the costs of conflict, change their political attitudes and even their votes? Prior to the 2015 Israeli elections, we randomly assigned...

Gabriel Carroll, Ilya Segal
The Review of Economic Studies. July
2019, Vol. 86, Issue 4, Pages 1527-1555

The standard revenue-maximizing auction discriminates against a priori stronger bidders so as to reduce their information rents. We show that such discrimination is no longer optimal when the auction’s winner...

Rebecca Diamond, Timothy James McQuade
Journal of Political Economy. June
2019, Vol. 127, Issue 3, Pages 1063-1117

We nonparametrically estimate spillovers of properties financed by the Low Income Housing Tax Credit (LIHTC) onto neighborhood residents by developing a new difference-in-differences style estimator. LIHTC development revitalizes low-income neighborhoods,...

Susan Athey, Mohsen Bayati, Guido W. Imbens, Zhaonan Qu
American Economic Review Papers and Proceedings. May
2019, Vol. 109, Pages 65-70

In many prediction problems researchers have found that combinations of prediction methods (“ensembles”) perform better than individual methods. In this paper we apply these ideas to synthetic control type problems...