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

Rachel Baker, Eric Bettinger, Brian Jacob, Ioana Marinescu
Economics of Education Review. August
2018, Vol. 65, Pages 18-30

An important goal of community colleges is to prepare students for the labor market. But are students aware of the labor market outcomes in different majors? And how much do...

Journal Article|
Saumitra Jha
Economic Policy. August
2018, Vol. 33, Issue 95, Pages 485-526

I examine the conditions under which trade can support peaceful coexistence and prosperity when particular social and ethnic groups are cheap targets of violence. A simple theoretical framework reveals that...

Michael Dinerstein, Liran Einav, Jonathan Levin, Neel Sundaresan
American Economic Review. July
2018, Vol. 108, Issue 7, Pages 1820-1859

The platform design, the process that helps potential buyers on the internet navigate toward products they may purchase, plays a critical role in reducing search frictions and determining market outcomes....

Mohammad Akbarpour, Matthew Jackson
Proceedings of the National Academy of Sciences of the United States of America. July
2018, Vol. 115, Issue 30, Pages E6996-E7004

Whether an idea, information, or infection diffuses throughout a society depends not only on the structure of the network of interactions, but also on the timing of those interactions. People...

Nicholas A. Bloom, Max Floetotto, Nir Jaimovich, Itay Saporta-Eksten, Stephen Terry
Econometrica. May
25 , 2018, Vol. 86, Issue 3

We investigate the role of uncertainty in business cycles. First, we demonstrate that microeconomic uncertainty rises sharply during recessions, including during the Great Recession of 2007–2009. Second, we show that...

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...