Skip to main content

University Economics

There is an interesting piece over at VOX (hat tip - Graham Brownlow) asking whether economics undergraduates are being well trained - click here.  There are at least six things which stand out for me in this piece.

1. Economics degrees need some economic history - economic history asks the big questions that need to asked.
2. There is too much of a focus on mathematics rather than economic intuition.
3. There is an overemphasis on econometric theory at the expense of analysing real data.
4. Econ graduates know very little about institutions and workings of the actual economy.  For example, they know very little about finance, banking, and the monetary system.
5. There needs to be more heterodoxy e.g., networks
6. Graduates have little in the way of well-developed communication and presentation skills.

I totally agree with these critiques, and I am proud to say that these criticisms cannot be levelled against the graduates that Queen's University Management School produces - particularly those on the BSc Finance (but I would say that!).

Popular posts from this blog

The CEO: The Rise and Fall of Britain's Captains of Industry

Michael Aldous and I had our book The CEO: The Rise and Fall of Britain's Captains of Industry published a few weeks ago. You can find out more about it and buy it at Cambridge University Press's website . It is also available at Amazon , Waterstones , and Barnes & Noble .  The CEO has already been reviewed in The Sunday Times , The Observer and Financial Times .

The Railway Mania

My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors. 

How Valuable Are Connections?

Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne...