**Graduate**

**Degree Programs**

**Economics**

The **Master of Science in Economics** has a twofold objective: (1) to provide students with analytical capabilities and research skills for careers in business, government, and the nonprofit sector; and (2) to prepare those who wish to pursue a Ph.D. The program has four different specialties: General Econometrics, Health Economics, PhD Preparation, and Monetary and Financial Economics. There is substantial overlap in the courses required for graduation under the four curricula. Nevertheless, the incoming student should have selected his or her area of specialization prior to entering the program.

**Student Learning Outcomes**

The Master of Science program has a twofold objective: (1) to provide students with analytical capabilities and research skills for careers in business, government, and the nonprofit sector; and (2) to prepare those who wish to pursue the Ph.D. at IUPUI, Indiana University Bloomington, or another university. Students completing the Economics M.A. curriculum will:

- Know a wide variety of economic issues.
- Understand the current state of economic thought with regard to these issues
- Be able to use mathematical and/or statistical models based on economic theory—including models that are computable—to help under understand and address important economic issues.
- Be able to understand the limitations of statistical data analysis, particularly in regard to detecting causal relationships between economic variables and be familiar with techniques for addressing these limitations.
- Be familiar with computer programs for manipulating large data sets and for conducting statistical analysis using these data sets.

**Special Departmental Requirements**

(See also general University Graduate School requirements.)

**Admission Requirements**

Applicants should have completed a bachelor’s degree from an accredited institution. Ordinarily, applicants should have a minimum grade point average of 3.0 on a 4.0 scale in their undergraduate course work and in their previous economics courses. Before undertaking graduate study in economics, a student should have knowledge of intermediate-level undergraduate economic theory (ECON-E 321 and ECON-E 322), statistics (ECON-E 270), differential and integral calculus (the IUPUI equivalent is MATH-M 16500 offered by the mathematics department). Students with deficiencies in economics and/or mathematics may be admitted on a conditional basis.

The verbal, quantitative, and analytical portions of the Graduate Record Examination (GRE) are required, and applicants are urged to complete the examination by December of the year before admission. Requests to substitute GMAT scores for GRE scores will be considered.

Three letters of recommendation are required, preferably from those familiar with the applicant’s academic career. Foreign applicants are required to take either the Test of English as a Foreign Language (TOEFL) or the International English Testing System (IELTS). The minimum requirements for admission are 79 on the TOEFL or 6.5 on the IELTS. Students with scores of less than 100 on the TOEFL or 7.5 on the IELTS are required to take an on-campus exam for English proficiency prior to their first semester of course work and may be required to take additional classes in English as a second language. We also accept successful completion of ELS 112 in lieu of a TOEFL or IELTS score for admission.

**Course Requirements**

Students must complete a minimum of 30 credit hours of graduate work. Of the 30 credit hours, 24 come from courses offered within the economics department and the remaining 6 hours are generally outside electives taken in other departments depending on the student's interest and long-term plans upon completion of the M.A.**Grades**

The student must receive at least a C (2.0) in each course and must average at least a B (3.0 on a 4.0 scale) for all courses taken.

###### Dual Degree: Master of Science in Economics and Master of Arts in Philanthropic Studies

The dual **Master of Science degree in Economics and Master of Arts in Philanthropic Studies** substantially benefits students intending to pursue a career in independent research, academia, or practice. Normally, those pursuing a career in research or academia continue in a Ph.D. program in economics, finance, accounting, management, marketing, or public policy. Very few doctoral programs include substantial content on philanthropy or nonprofit organizations. As such, the M.A. in philanthropic studies provides a broad interdisciplinary background that makes the future researcher sensitive to the institutional details, values, and history of the sector, thus leading to better research. For the future nonprofit manager or leader, economics provides the principles and methodologies to make informed decisions on the appreciative level, the policy level, and the managerial level.

Admission requirements for the dual degree program are identical to those for each program separately. Separate application must be made to each of the two programs. Students are expected to take responsibility for learning about and meeting the admission requirements of each school individually, which may differ from each other in application documents required, minimal standards of criteria for admission, and deadline dates. Students must make plans early with advisors in both programs to identify (1) common courses and (2) thesis credit.

Study for the two degrees can be combined for a total of 51 credit hours rather than the 66 credit hours that would be required if the two degrees were taken separately. Two of the required core courses for the M.S. in economics may be selected as electives to meet the Philanthropic Studies Program requirement for two applied electives. One of the required philanthropic studies courses, ECON-E 514 The Nonprofit Economy and Public Policy, may be taken to meet 3 of the 12 credit hours of economics electives required in the economics program. A common thesis meets the requirements of both departments.

Further information regarding regulations governing advanced degree programs may be obtained from the respective departments.

###### 5-year Dual BA-MS Degree

Students entering their senior year as undergraduate economics majors may apply for the 5-year BA-MS degree. This program is also 30-hours and requires many of the same courses as does the standard MS program. Requirements for admission are the same as those for the standard MS.

###### Doctor of Philosophy Degree

The **Doctor of Philosophy (Ph.D) in Economics** is designed to (i) advance knowledge concerning health; (ii) develop the skills essential for our graduates to conduct independent research in this areas.

**STUDENT LEARNING OUTCOMES**

The Ph.D. program is designed to advance knowledge concerning Philanthropy/Nonprofit Economics. It will develop the skills essential for our graduates to conduct independent research in this area. Students completing the Economics Ph.D curriculum will:

- Demonstrate a high level of understanding of economic theory, and of statistical theory especially relevant for economics.
- Demonstrate a thorough understanding of the state of knowledge in their fields of specialization within economics, including theoretical models, research methodologies, and empirical results.
- Demonstrate the ability to critically assess economic issues, and to integrate economic theory and statistical/econometric analysis in order to evaluate these issues.
- Demonstrate the ability to assemble, organize and analyze economic data, in order to conduct advanced econometric analysis ability to conduct independent, original research in economics.

**Special Departmental Requirements**

(See also general University Graduate School requirements.)

**Ph.D. Admission Requirements**

Applicants should have completed a bachelor’s degree from an accredited institution. Ordinarily, applicants should have a minimum grade point average of 3.0 on a 4.0 scale in their undergraduate course work and in the major. Before undertaking Ph.D. graduate study in economics, a student is required to have completed coursework covering undergraduate univariate and multivariate calculus (equivalent to MATH-M 16500, MATH-M 16600, and MATH-M 26100 at IUPUI), a calculus-based statistics course or a course in Statistics and one in Econometrics (equivalent to ECON-E 270 and ECON-E 470 at IUPUI), Intermediate Microeconomic Theory (equivalent to ECON-E 321 at IUPUI) and Linear Algebra (equivalent to MATH-M 35100 at IUPUI). The verbal, quantitative, and analytical portions of the Graduate Record Examination (GRE) are required, and applicants are urged to complete the examination by December of the year before admission is desired. Requests to substitute GMAT scores for GRE scores will be considered. Three letters of recommendation are required. Students with English as a second language who have not attended school in the U.S. are required to take either the Test of English as a Foreign Language (TOEFL) or the International English Language Testing System (IELTS). For IELTS, applicants must take the academic reading and writing modules. A minimum TOEFL score of at least 88 is required though successful applicants generally score at least 100. The minimum acceptable IELTS score is 6.5 though successful applicants generally score at least 7.5.

**Fields of Study**

Fields of study currently available within the department are health economics and nonprofit/philanthropic economics. Students must take this field as well as the course sequence in econometrics.

**Course Requirements**

A total of 90 credit hours, including the theory sequence ECON-E 520, ECON-E 521, ECON-E 522, ECON-E 611, ECON-E 621, and the econometrics-statistics sequence ECON-E 571, ECON-E 573, ECON-E 577, ECON-E 578, ECON-E 670, and ECON-E 673. In addition, starting in their third year, students must formally enroll in a workshop course for a minimum of four semesters. Student may cease to register for the workshop seminar after four semesters if they have either accumulated the required 90 credits or defended their PhD thesis. There is a minimum requirement of 61.5 credit hours of course work, including standard Economics courses, Economics workshop courses, and minor courses. The remaining courses will be taken as thesis credits.

**Minor**

In addition to the formal coursework in Economics the prospective Ph.D. candidate must complete a structured minor in a related area. For those with a primary field in health economics, the minor will usually relate to the health and life sciences disciplines. A minor obtained in areas such as behavioral health sciences, biostatistics, environmental health sciences, epidemiology, or health policy and management would be appropriate, for example. The minor must be approved by the student’s Advisor or the graduate director of the program. The minor must contain a minimum of three graduate level courses (9 credits) in the chosen area and it must comply with the minor requirements of the respective department/unit. Typically departments require 12 credit hours for a Ph.D. Minor. In cases where it is appropriate, an interdepartmental minor can be arranged with the consent of the DGS. When appropriate, a student may, with the consent of his/her advisor and/or the DGS, substitute a research tool skill of at least 9 credit hours for the Minor. These research tool skills credits will count toward the 90 credit requirement as long as the courses are approved for graduate credit.

**Grades**

The student must receive at least a C (2.0) in each course and must average at least a B (3.0 on a 4.0 scale) for all courses taken.

**Courses**

**ECON-E 504 Mathematics for Economists (3 cr.)**Topics in mathematics that are particularly useful in the application of microeconomic theory, macroeconomic theory, and econometrics. Topics covered include: matrix algebra, comparative-static analysis, constrained optimization, difference equations in discrete time, game theory, and set theory as applied to general equilibrium analysis.**ECON-E 514 The Nonprofit Economy and Public Policy (3 cr.)**P: ECON-E 201. The role of nonprofit organizations (universities, churches, hospitals, orchestras, charities, day care, research, nursing homes) in mixed economies. Public policy controversies such as regulation of fundraising, antitrust against universities, "unfair" competition with for-profit firms, and the tax treatment of donations. (This course may not be taken for credit by anyone who has received credit for ECON-E 414.)**ECON-E 515 Institutional Setting for Health Economics in the U.S. (3 cr.)**P: or C: ECON-E 521 and ECON-E 571. Overview of the structure for the U.S. health care system including health care financing, health care delivery, and government programs. Private and public financing mechanisms as well as government regulation. Comparison of the U.S. system to the health care systems of other countries.**ECON-E 520 Optimization Theory in Economic Analysis (3 cr.)**P: Calculus and Linear Algebra. Introduction to concepts and techniques of optimization theory applied in modern micro and macroeconomics. Theory and application of Lagrange multipliers, comparative statics analysis, valve functions and envelope theorems. Elements of dynamic programming and other methods of economics dynamics.**ECON-E 521 Theory of Prices and Markets (3 cr.)**P: ECON-E 504 or consent of instructor. Develops the methodology of economic analysis and teaches the tools and language of price theory. Fundamental elements of consumer theory, producer theory and economics of uncertainty. Emphasis on comparative statics and the duality theory. Topics on welfare analysis, the theory of price indices, quality of goods, revealed preferences, the theory of derived demand, expected utility theory, attitudes toward risk, and various measures of riskiness.**ECON-E 522 Macroeconomic Theory 1 (3 cr.)**P: ECON-E 520. Introductory course on macroeconomic dynamics; covers growth models and asset pricing theories, endogenous growth theories, optimal growth problems, and competitive dynamic equilibrium models. Dynamic programming tools introduced as needed. All models are cast in discrete time setup; presents deterministic and stochastic theories.**ECON-E 570 Fundamentals of Statistics and Econometrics (3 cr.)**Mathematical overview of statistics and econometrics at graduate level. Topics covered include probability and probability distributions, sampling distributions, tests of hypotheses, estimation, simple regression, multiple regression, generalized linear model and its applications, simultaneous equation system.**ECON-E 571 Econometrics I-Statistical Foundations (3 cr.)**P: Calculus and Linear Algebra. The probability bases for statistical estimation and testing are introduced in the context of issues, theories, and data found in economics. The classical linear regression model is presented as the starting point for multivariate analyses in econometrics. Students work with various computer programs in and out of the scheduled class periods.**ECON-E 573 Econometrics II (3 cr.)**P: ECON-E 571. Estimation and inference in linear regression model, basic asymoptotic theory, heteroskedasticity, measurement error, generalized least squares, instrumental variable model, maximum likelihood estimation, generalized method of moments, qualitative response models.**ECON-E 574 Applied Econometrics and Forecasting (3 cr.)**P: ECON-E 570. An overview of techniques employed in economic model building, estimation, and usage. Topics covered include single and multi-equation system estimation, limited dependent variable regression techniques, hypothesis testing, policy analysis, and forecasting. Various forecasting techniques are discussed, including smoothing and decomposition methods and time series analysis. A number of projects are assigned throughout the semester in order to give the student hands-on experience with the different techniques.**ECON-E 577 Computer Methods and Data Analysis (3 cr.)**P: ECON-E 570 or ECON-E 573. The first of a two-semester sequence in computer methods and data analysis. ECON-E 577 teaches students to use large datasets in an econometric analysis to answer a research question, to program in Stata, and to organize a complicated data project. The course also will complete students' introduction to the Stata programming language. The course prepares students to carry out their own large-scale research project and/or efficiently work within an organization that uses large data files to achieve its objectives.**ECON-E 578 Advanced Computer Methods and Complex Datasets (3 cr.)**P: ECON-E 577. In ECON-E 578 students learn to conduct empirical research with advanced computer methods and complex datasets. In the first half of the course students will learn the process by which empirical research is conducted by critiquing several published research articles and replicating the research from a previously published journal article. The replication will involve critical assessment of the research question, specific aims, innovation, significance, methodological approach, as well as learning the computer methods and datasets necessary to replicate the results. In the second half of the course students will use their acquired knowledge of research process to write a detailed proposal for an original research project. The course culminates with an oral presentation of the proposal, followed by critical peer assessment of the project's research question, aims, innovation, significance, and methods. In addition to learning the process of research, students will acquire advanced Stata programming skills (e.g., ado-file programming, Mata, maximum-likelihood programming), and be introduced to several complex data sets that are important in health economics research. At the culmination of the course, students will be prepared to execute their first original research project. That execution will commence during the summer following completion of E578.**ECON-E 581 Topics in Applied Microeconomics I (3 cr.)**P: ECON-E 521. This course is a graduate-level introduction to theoretical and empirical applications in one or more areas of microeconomics. We will demonstrate how economic concepts can be usefully applied to understanding problems in the sub-discipline under study and discuss and apply estimation techniques appropriate for problems in the area.**ECON-E 582 Topics in Applied Microeconomics II (3 cr.)**P: ECON-E 521 and ECON-E 570 or consent of the instructor. This course is a second graduate-level introduction to theoretical and empirical applications in two areas of microeconomics. We will demonstrate how economic concepts can be usefully applied to understanding problems in the sub-discipline under study, and discuss and apply estimation techniques appropriate for problems in the area.**ECON-E 583 Introduction to Applied Macroeconomics (3 cr.)**P: ECON-E 522 and ECON-E 570 or equivalents and consent of the instructor. This course is a graduate-level introduction to theoretical and empirical applications in two areas of macroeconomics. We will demonstrate how economic theories can be usefully applied to understanding problems in the sub-discipline under study and discuss and apply estimation and calibration techniques appropriate for problems in the area.**ECON-E 600 Research in Economics (arr. cr.)**Individual readings and research.**ECON-E 611 Information Economics and Theories of Incentives and Contracts (3 cr.)**P: ECON-E 521. The course covers topics in the theories of incentives and contracts that study situations in which there are explicit or implicit contractual obligations. It explores the role and influence of asymmetric information in determining outcomes with special emphases on moral hazard and adverse selection.**ECON-E 621 Theories of Prices and Market (3 cr.)**P: ECON-E 520. Analysis of equilibrium, first- and second-orderconditions; statistical derivation of demand and cost curves; activity analysis; general equilibrium; welfare economics; microeconomics of capital theory; pure oligopoly and gave theory.**ECON-E 643 Health Economics I (3 cr.)**P: ECON-E 515, ECON-E 573, and ECON-E 611. E643 will provide students with the theoretical knowledge and make them familiar with current research on key issues in health economics, including the production of and demand for health, determinants of health and health disparities, change in health technology, and the economic evaluation of health and health care.**ECON-E 644 Health Economics II (3 cr.)**P: ECON-E 515, ECON-E 573, and ECON-E 611. This course builds on the core theory, econometrics and health economics courses to provide an in depth knowledge of key issues related to markets and market failure in the supply of health care services, the impact of insurance on the demand for health care services, response of consumers to insurers' financial incentives, the role of government in health care markets, the labor market behavior of physicians; hospital ownership, competition, and reimbursement. In addition to introducing theoretical concepts the course aims at familiarizing students to current research on these topics by means of review of seminal journal articles. It will provide a foundation for understanding key dimensions in health care markets, appreciate contributions of past literature on the subject and initiate constructive critical thought on the existing work and future directions of research in the field.**ECON-E 670 Econometrics 3-System and Panel Econometric Models (3 cr.)**P: ECON-E 573 or equivalent. Simultaneous equation models (2SLS, 3SLS), time series concepts for panel data analysis and serial correlation, pooled cross-section methods, linear panel data models [First Differences, Fixed Effects (FE) and Random Effects (RE)], nonlinear panel data models (ML and GMM).]**ECON-E 673 Econometrics 4-Microeconometrics (3 cr.)**P: ECON-E 573 or equivalent. Microeconometrics with applications to labor, health, and public economics. Extensive coverage of limited dependent variable and panel data models. Empirical implementation is an essential component of the course.**ECON-E 744 Seminar/Workshop in Health Economics (3 cr.)**P: ECON-E 644. The Seminar in Health Economics introduces students to current working papers in health economics by leading scholars who present their work in a seminar format at IUPUI. It also provides the opportunity for PhD students to present their own work to faculty and peers.**ECON-E 800 Research in Economics (arr cr.)****ECON-E 808 Thesis (M.A.) (arr. cr.)****ECON-E 809 Thesis (PhD) (arr. cr.)**