Economics studies the allocation of scarce resources. Since this is a microeconomics course, it will focus on the decisions made by individual consumers and producers. We will consider a variety of different market structures ranging from perfect competition to monopoly. We also will discuss the rationale for government involvement when there are market failures.

Analysis of the operation of the national economy, with emphasis on the causes and consequences of recessions and booms, inflation and unemployment - and possible policy responses to each. Topics include fiscal policy and monetary policy, long-term growth and budget deficits, international trade and currency exchange rates.

This course covers the main tools used in a mathematical approach to economic analysis, for example in ECO 310/311/312. Topics include multivariable calculus and optimization, linear algebra, basic probability theory and stochastic processes, and an introduction to real analysis and dynamic programming. The course provides a more economics-relevant alternative to MAT 175.

An introduction to probability and statistical methods for empirical work in economics. Probability, random variables, sampling, descriptive statistics, probability distributions, estimation and hypotheses testing, introduction to the regression model.

This course builds on your knowledge of microeconomics from ECO 100. As with ECO 100, this course will focus on the decisions made by individual consumers and producers. It will consider a variety of different market structures ranging from perfect competition to monopoly. It will also discuss the rationale for government involvement when there are market failures. While the topics will be very similar to those covered in ECO 100, the analysis will be more in depth.

This course covers the theory of modern macroeconomics in detail. We will focus on the determination of macroeconomic variables -- such as output, employment, price, and the interest rate -- in the short, medium, and long run, and we will address a number of policy issues. We will discuss several examples of macroeconomic phenomena in the real world. A central theme will be to understand the powers and limitations of macroeconomic policy in stabilizing the business cycle and promoting growth.

Develop facility with basic econometric methods and the ability to apply them to actual problems and understand their application in other substantive course work in economics.

This course presents the economic theory of individual and firm behavior using mathematical tools including calculus. The course will emphasize applications of microeconomic theory to consumer choices, output and production of firms, market interaction and equilibrium.

This course is an introduction to econometrics. Econometrics is a sub-discipline of statistics that provides methods for inferring economic structure from data. This course has two goals. The first goal is to give you means to evaluate an econometric analysis critically and logically. Second, you should be able to analyze a data set methodically and comprehensively using the tools of econometrics.

The world of sports offers a broad laboratory to study many topics in microeconomics, while providing uniquely rich data on decisions, performance, and compensation. We will use theoretical and empirical tools to study topics such as behavioral biases in decision making, strategic behavior in games and tournaments, operation and efficiency of betting markets, salary determination, evidence and implications of discrimination, the industrial organization of professional and collegiate leagues, and public policy issues concerning public infrastructure and exemptions from antitrust laws.

This is an advanced microeconomic theory course. Students are introduced to a variety of frontier research areas in microeconomic theory. While the course focuses on mathematical and statistical analysis, empirical and experimental applications of the material are discussed throughout. The course covers the following topics: [1] Theories of choice under uncertainty. [2] Risk aversion and applications to insurance and portfolio choice. [3] Asymmetric information: moral hazard and adverse selection. [4] Market design: auctions, matching markets, and voting systems.

This course is an introduction to Industrial Organization, a field of Economics concerned with imperfect competition and market structure. We introduce core concepts in the theory of Industrial Organization and examine empirical evidence for the theory. A key goal is to develop an understanding for how public policy may be used to mitigate any detrimental effects of market power in the economy (e.g., monopoly or oligopoly power). We build on the tools of microeconomics, game theory, information economics and econometrics. The textbook provides introduction to a variety of topics, many of which will be covered in class in greater depth.

This course introduces basic concepts and methods in time series analysis with applications in macroeconomics. Emphasis is placed on developing an understanding of how the techniques work, and when they are most suitable for applications. Applications will focus on fiscal and monetary policies, exchange rate regimes, international capital flows, and economic growth. The lectures are designed so that students will understand the basic ideas, while a set of homework assignments has been prepared to allow the students to dig deeper into the material, as well as providing hands-on experience in estimating time series models.

This class studies how to solve problems of economic resource allocation via markets in three parts. 1: Matching markets (how to assign students to schools, kidneys to patients, workers to jobs, etc). 2: Auctions (how they can be used to discover price in various environments and their use to allocate goods such as advertising, financial assets or radio spectrum). 3: Analyze trading with asymmetric information, the role of platforms and digital currencies. Throughout the course we will discuss the issues underlying the design of successful marketplaces. The course will emphasize applications and connections between the different problems.

Using microeconomic theory and case studies, this course explores the relationship between digital technologies (including artificial intelligence) and economic outcomes. Information access is continuous and ubiquitous, leading to networked markets. The drivers are data-driven decision-making, elimination of intermediaries, a content tsunami and scarcity of time. Models examined include graph theory, game theory, imperfect information, behavioral economics, network effects. New business models empower communities, while being scalable and asset-light. Implications are drawn for productivity, labor markets and economic inequality.

This course explores the interaction between money, financial markets and institutions. We examine (1) the three roles of money, using cryptocurrencies as leading example, (2) the core principles of asset pricing, (3) how financial institutions, including FinTech, help to overcome financial frictions, but may lead to financial crisis and bank runs, (4) how monetary and macroprudential policy impact inflation, growth, and financial stability. (5) the international financial architecture, especially the role of the International Monetary Fund.

This course is an introduction to financial investments for students with no prior knowledge of finance. It provides an overview of financial markets and instruments including stocks, bonds, futures, options, and other derivatives. A theory of optimal asset allocation teaches the tradeoff between risk and return and the importance of diversification. A theory of asset pricing, developed under the assumption of no arbitrage, is used to evaluate trading strategies and the performance of mutual funds and other asset managers. Key concepts are illustrated through examples and homework exercises that use financial market data.

The European Union (EU) is unique: 27 countries have come together in an (almost) economic union, giving up sovereignty over trade, migration, and money (euro area members) and adopting common policies related to agriculture, regions, competition, energy, and climate change. This course uses economic tools and empirical studies to understand the economics benefits and costs of creating a common market and a monetary union. It assesses whether common policies meet their stated goals such as reducing inequalities or anticompetitive behaviors. It also studies the EU's economic response to immigration and US/EU economic disputes.

This course studies the impact of recent technological innovations in the financial sector. We first study developments in digital money, ledgers, and payment systems. We then study the use of big data and artificial intelligence in the provision of credit. Finally, we explore different possible futures for how the overall financial sector could be organized. Throughout the course, students will learn both the underlying economics of fintech as well as practical statistical tools for developing new fintech products. The recent financial innovations will also be put into their historical, social and ethical context.

In this course on game theory and information economics, tools of decision making under uncertainty such as expected utility theory and Bayesian revision are studied and applied to the analysis of strategic interactions. Applications include auctions, bargaining, repeated games and mechanism design.

This course covers a number of advanced topics related to asset management and asset pricing. Topics covered include mean-variance analysis, dynamic optimization, CAPM, APT, market efficiency, active money management, indexing, stock return predictability, bubbles and crashes, mutual fund and professional managers' performance, hedge funds, security analysts, social interaction and investor behavior and fixed income portfolio management.

Financial institutions play an increasingly dominant role in modern finance. This course studies the financial system and its protagonists, with a focus on efficiency and stability. It covers important theoretical concepts and recent developments in asset pricing under asymmetric information, market microstructure, and financial intermediation. Topics include market efficiency, liquidity crises, asset price bubbles, herding, risk management, market design and financial regulation.

This course covers theoretical and practical aspects of alternative investments, examples of which include hedge fund, venture capital, private equity, and real estate investments. These forms of investments play an increasingly important role in US capital markets, and this course provides students with the tools necessary to understand the role of these alternative investments and how to integrate them when constructing optimal wealth portfolios.

This course offers a comprehensive and modern view of a risk management system. The material studied will be helpful for any future career related to trading, portfolio and risk management. It is a hands-on computational course that mixes theory with practical solutions to issues appearing in financial firms. We primarily cover topics related to market risk including but not limited to risk factors and how they are used to price assets, bonds and options hedging, portfolio conditional loss distributions, back-testing our risk management models, and stress testing.

The senior thesis (498-499) is a year-long project in which students complete a substantial piece of research and scholarship under the supervision and advisement of a Princeton faculty member. While a year-long thesis is due in the student's final semester of study, the work requires sustained investment and attention throughout the academic year. Required works-in-progress submissions, their due dates, as well as how students' grades for the semester are calculated are outlined below.

First term of a two-term sequence in microeconomic theory. Topics include consumer and producer theory, choice under uncertainty and an introduction to game theory.

First term of a two-term sequence in macroeconomics. Topics include consumption, saving, and investment; real interest rates and asset prices; long-term economic growth; money and inflation; and econometric methods for macroeconomics.

Under the supervision of a faculty member, students carry out research on a directed topic and present results. For an independent project, students must identify a supervising faculty member and submit a written plan for research and evaluation which must be approved by the supervising faculty member and director of graduate studies by October 15. Otherwise, all second-year students will register for one of several groups that meet weekly and receive a grade of P/F from the two faculty assigned to that section.

Topics vary from year to year reflecting, among other things, current developments and the instructor's interests. Topics covered in past years have included expected and nonexpected utility theory, intertemporal general equilibrium theory, evolutionary game theory, dynamic games, contract theory, theory of organizations, and bounded rationality.

A first-year course in the first-year econometrics sequence: it is divided into two parts. The first gives students the necessary background in probability theory and statistics. Topics include definitions and axioms of probability, moments, some univariate distributions, the multivariate normal distribution, sampling distributions, introduction to asymptotic theory, estimation and testing. The second part introduces the linear regression model and develops associated tools. Properties of the ordinary least squares estimator will be studied in detail and a number of tests developed.

Focused on analytical models of political institutions, this course is organized around canonical models and their applications. These include: voting models, menu auctions, models of reputation and cheap talk games. These models are used to explain patterns of participation in elections, institutions of congress, lobbying, payments to special interest groups and other observed phenomena.

Topics vary from year to year, reflecting current developments and the instructor's interests. Topics covered in past years have included methods of numerical analysis and econometric testing of equilibrium business cycle models, the role of monetary and fiscal policy in inflation determination, the nature of optimal monetary policy, dynamic games and time consistency in macroeconomic policy formation, central banking, and the theories of price stickiness.

This course provides a microeconomic examination of the role of government in the economy. The topics covered include sufficient statistics approaches, labor supply responses, taxable income responses, savings/wealth responses, tax compliance, optimal taxation and redistribution. In terms of methodologies, empirical and theoretical analyses will feature in roughly equal proportions.

Introduction to asset pricing covering theory in both continuous and discrete time to study dynamic portfolio choice; derivative pricing; the term structure of interest rates; and intertemporal asset-pricing and consumption-based models.

The course covers research topics that require the use of dynamic macroeconomic models with heterogeneous agents (households, firms, financial intermediaries, etc.). The methodological emphasis is both (a) on the coherent construction of the models and (b) on their parameterization and numerical solution. ECO 504 is a prerequisite.

The Great Recession led to a transformational rethinking of Monetary Economics. This course covers the interaction between monetary policy and macro-prudential policy as well as spillover analysis and the implications for the international financial architecture. Goals are to learn about new research trends and contrast them with the established New Keynesian framework. The course introduces new advanced tools, including formal modeling, economic dynamical systems in continuous time, strategic interactions, asymmetric information, and modern welfare analysis.

An examination of the economics of the labor market, especially the forces determining the supply of and demand for labor, the level of unemployment, labor mobility, the structure of relative wages, and the general level of wages.

Methods for empirical and theoretical analysis of markets composed of productive enterprises and their customers are studied. Analyses are applied to modern market structures and practices, and public policy towards them. Topics include the roles of technology and information, the structure of firms, modes of interfirm competition, determination of price, quality, and R & D investment, and criteria for government intervention.

The determinants of foreign trade: (1) inter-country differences of factor endowments and technologies and (2) scale economics and imperfect competition are studied. Dynamic comparative advantage; innovation and growth; factor movements and multinational corporations; gains from trade; tariffs and quantitative restrictions on trade and their role in dealing with market failures and oligopolies; the political economy of trade policy; international negotiations on trade policy; and economic integration are studied as well.

An examination of those areas in the economic analysis of development where there have been recent analytical or empirical advances. Emphasis is given to the formulation of theoretical models and econometric analysis and testing. Topics covered include models of household/farm behavior, savings behavior, equity and efficiency in pricing policy, project evaluation, measurement of poverty and inequality, and the analysis of commodity prices.

Drafts of papers, articles, and chapters of dissertations or books, prepared by graduate students, faculty members, or visiting scholars, are exposed to critical analysis by a series of seminars organized by field. The chief objectives are for the writers to receive the benefit of critical suggestions, for all participants to gain experience in criticism and uninhibited oral discussion, and for students and faculty members to become acquainted with the research work going on in the department. Third- and fourth-year graduate students are expected to attend; first-and second-year students and faculty members are invited to attend.

Drafts of papers, articles, and chapters of dissertations or books, prepared by graduate students, faculty members, or visiting scholars, are exposed to critical analysis by a series of seminars organized by field. The chief objectives are for the writers to receive the benefit of critical suggestions, for all participants to gain experience in criticism and uninhibited oral discussion, and for students and faculty members to become acquainted with the research work going on in the department. Third- and fourth-year graduate students are expected to attend; first-and second-year students and faculty members are invited to attend.

Drafts of papers, articles, and chapters of dissertations or books, prepared by graduate students, faculty members, or visiting scholars, are exposed to critical analysis by a series of seminars organized by field. The chief objectives are for the writers to receive the benefit of critical suggestions, for all participants to gain experience in criticism and uninhibited oral discussion, and for students and faculty members to become acquainted with the research work going on in the department. Third- and fourth-year graduate students are expected to attend; first-and second-year students and faculty members are invited to attend.

Drafts of papers, articles, and chapters of dissertations or books, prepared by graduate students, faculty members, or visiting scholars, are exposed to critical analysis by a series of seminars organized by field. The chief objectives are for the writers to receive the benefit of critical suggestions, for all participants to gain experience in criticism and uninhibited oral discussion, and for students and faculty members to become acquainted with the research work going on in the department. Third- and fourth-year graduate students are expected to attend; first-and second-year students and faculty members are invited to attend.

Drafts of papers, articles, and chapters of dissertations or books, prepared by graduate students, faculty members, or visiting scholars, are exposed to critical analysis by a series of seminars organized by field. The chief objectives are for the writers to receive the benefit of critical suggestions, for all participants to gain experience in criticism and uninhibited oral discussion, and for students and faculty members to become acquainted with the research work going on in the department. Third- and fourth-year graduate students are expected to attend; first-and second-year students and faculty members are invited to attend.

Drafts of papers, articles, and chapters of dissertations or books, prepared by graduate students, faculty members, or visiting scholars, are exposed to critical analysis by a series of seminars organized by field. The chief objectives are for the writers to receive the benefit of critical suggestions, for all participants to gain experience in criticism and uninhibited oral discussion, and for students and faculty members to become acquainted with the research work going on in the department. Third- and fourth-year graduate students are expected to attend; first-and second-year students and faculty members are invited to attend.

Drafts of papers, articles, and chapters of dissertations or books, prepared by graduate students, faculty members, or visiting scholars, are exposed to critical analysis by a series of seminars organized by field. The chief objectives are for the writers to receive the benefit of critical suggestions, for all participants to gain experience in criticism and uninhibited oral discussion, and for students and faculty members to become acquainted with the research work going on in the department. Third- and fourth-year graduate students are expected to attend; first-and second-year students and faculty members are invited to attend.

Drafts of papers, articles, and chapters of dissertations or books, prepared by graduate students, faculty members, or visiting scholars, are exposed to critical analysis by a series of seminars organized by field. The chief objectives are for the writers to receive the benefit of critical suggestions, for all participants to gain experience in criticism and uninhibited oral discussion, and for students and faculty members to become acquainted with the research work going on in the department. Third- and fourth-year graduate students are expected to attend; first-and second-year students and faculty members are invited to attend.

Seminar led by different guest professors each week to discuss their current research in the field of Behavioral Economics.

Seminar led by different guest professors each week to discuss their current research in the field of Political Economy. Third and fourth year graduate students are expected to attend; first and second year graduate students and faculty members are invited to attend.

Course introduces use of economics in understanding both the sources of and the remedies to environmental and resource allocation problems. It emphasizes the reoccurrence of economic phenomena like public goods, externalities, market failure and imperfect information. Students learn about the design and evaluation of environmental policy instruments, the political economy of environmental policy, and the valuation of environmental and natural resource services. These concepts are illustrated in a variety of applications from domestic pollution of air, water and land to international issues such as global warming and sustainable development.