Economics in Action
Recent articles, publications, and news items featuring Econ Department faculty, students, alumni, and staff.
Workers vs. the Robots: Minimum Wage and California’s Fast Food Offerings
Some economists are concerned that California’s raised minimum wage for fast-food restaurant workers ($20 an hour as of April 2024) could increase teen unemployment and stir fears of robots replacing human workers. Marc Muendler of Economics told SD Metro that since customers still prioritize quality service at restaurants, the new wage will not lead to drastic employment changes. “If you go to a restaurant, you don’t want a robot. There’s no easy way to make restaurant workers more productive and more efficient.”
Did the Federal Reserve Go Too Far with Its Half-Point Reduction?
“Everybody was expecting the Fed to begin reducing rates starting with a one-quarter- to one-half-point cut at the last meeting,” James Hamilton of Economics told the San Diego Union-Tribune’s Econometer panel. “This just means that the Fed is going to get to a lower level of interest rates a little more quickly than many of us expected. It’s a sign that the Fed believes inflation is getting under control.” Hamilton, a regular contributor to the expert panel, also commented on the likelihood of a light rail connection to San Diego’s airport, whether taxes should be removed on tips, and how to address battery storage fire concerns.
Kamala Harris' Economic Plan
A survey of top 40 macroeconomists, run by the Financial Times and Allan Timmermann of Economics together with colleagues at the University of Chicago and Johns Hopkins, is cited in Vice President Kamala Harris’ economic “New Way Forward” plan.
How Are Insurance Markets Adapting to Climate Change? New Study Explores the Impact of Wildfires on Home Insurance
As natural disasters increase in frequency and intensity due to climate change — with annual losses in the U.S. now topping $120 billion — the homeowners insurance market is facing unprecedented challenges. A new working paper from the National Bureau of Economic Research (NBER), co-authored by Judson Boomhower of Economics, delves into how insurance companies are responding to increased climate risks, particularly wildfires, which have become the fastest-growing source of catastrophe-related damages in the United States. The study, covered in Bloomberg, The Hill, and LA-area NPR affiliate LAist, found "striking variation" in how insurers priced wildfire risk.
Are San Diego Jobs at Risk From AI?
"AI will change the way many of us work. It will eliminate some jobs. But it will also create new jobs, particularly for those who develop and apply the new technology," James Hamilton of Economics told the San Diego Union-Tribune’s Econometer panel. "AI and people need to work together to be most effective." Hamilton, a regular contributor to the panel, also shared his expertise on whether the overvaluation of homes makes home ownership a risky decision, on whether a Harris administration could spur construction of 3 million new homes, on Comic-Con demands for reduced hotel room prices, on whether a U.S. economic slowdown would be a hard or soft landing, and other topics.
California's Exodus Could Get Even Worse
California’s population has decreased by 500,000 over the last three years, and experts are wondering why so many Californians are moving to other states. "All the data I've seen suggest that housing is the driving issue. A typical house in California costs twice as much as a typical house in Texas, the most common destination for California out-migrants," Tom Vogl of Economics told Newsweek. "California is also the epicenter of homelessness in the US. The homelessness crisis is another byproduct of unaffordable housing as well as another push factor that may drive residents to leave."
Fertility, Migration, and Altruism
In this Faculti.net video, Eli Berman of Economics presents his research on Soviet Jews who migrated to Israel and the complex interplay of migration costs and their effects on intergenerational altruism and fertility.
Getting Cash Transfers Right
Paul Niehaus of Economics appeared on a VoxTalks Economics podcast, produced by VoxEU and the European Center for Economic Policy Research, to discuss how cash transfers to individuals and households can be best used to alleviate poverty.
30 Years of Critical Funding for Junior Faculty
The Hellman Fellows Program recognizes promising junior faculty and provides funding to support their research and progress towards tenure. Congratulations to the Social Sciences faculty selected for the 2024-25 cohort: Fabian Eckert of Economics, José I. Fusté of Ethnic Studies and Critical Gender Studies, Neil Gong of Sociology, Kelema Lee Moses of Urban Studies and Planning, Holly Okonkwo of Ethnic Studies, and Haijun Xia of Cognitive Science.
The Basement Celebrates Student Entrepreneurship with Demo Day-Pitch Competition 2024
Social Sciences students shined in the Demo Day and Pitch Competition at the Basement. Economics major Paulina Laba won first place for the startup she co-founded, LockPod, that designs next-level bike lockers to prevent bike and scooter theft. "I came to [The Basement] with just a drawing on my iPad, and now it’s grown into a full company," Laba told UC San Diego Today. The story also highlighted projects by Cognitive Science major Samantha Sayson, Economics major Harris Dalal, and Economics and Psychology major Richard Collins Billhardt.
WTO Announces Winner of 2024 Essay Award for Young Economists
Congratulations to Economics doctoral alumnus Carlos Góes ’24 on receiving the World Trade Organization’s 2024 Essay Award for Young Economists for the paper “Trade, Growth, and Product Innovation.” The paper examines the mechanisms through which trade integration can lead to product innovation. Note: A UC San Diego Economics alum has won the award for the second year in a row: Xiao Ma ’21 won the award in 2023. Both winners were Ph.D. students of Marc Muendler.
Triton Athletes Face the Hidden Opponent
Economics undergraduate student Reilly Erickson and Psychology undergraduate student Zoë Richards, both members of the UC San Diego softball team, told UC San Diego Today about their work with The Hidden Opponent, a student organization that strives for increased mental health awareness in sports culture. “You’re expected to be a good athlete but you're also expected to be a good student, teammate and friend,” Richards said about the pressure placed on student athletes to excel in all areas. “My goal,” Erickson added about The Hidden Opponent’s mission, “is to collaborate with coaches and teams to create safe spaces for athletes to talk about their mental health and advocate for athletes as a whole.”
Are Higher Mortgage Rates Enough To Slow San Diego Home Price Growth?
James Hamilton of Economics, a regular member of the San Diego Union-Tribune’s Econometer panel, said that a 7.52% interest rate, the highest mortgage rate this year, will deter some homebuyers. “Rates are going to take much longer to come down than many people had been assuming. If you’re going to be stuck paying that high interest for many years, you have to rethink purchasing an expensive home.” Hamilton also contributed to the Econometer discussions of whether San Diego should implement the $25 service worker minimum wage, Biden's raised tariffs on Chinese EVs,the impact of San Diego City Council increasing developer fees, and whether a new neighborhood group in Uptown is a positive development.
Education, Collaboration Help Launch Startups at UC San Diego
“In 2015, we launched The Basement with complementary objectives of incubating ideas and student entrepreneurs,” Economics alum Jeff Belk ’83 told UC San Diego Magazine. The Basement, co-founded by Belk and housed in the new Design and Innovation Building, features a prototyping lab, standing tables, computers and large-scale screens to foster collaboration and interdisciplinary brainstorming.
System Changers: Notes on Session 3 of TED2024
Karthik Muralidharan of Economics and Political Science doctoral alum Rumman Chowdhury gave TED2024 talks, as did Keolu Fox of Anthropology. Stay tuned for the videos! We’ll share as they become available.
Meet the 2024 Alumni Award Honorees
ICYMI, you can watch these videos celebrating our amazing Alumni Award recipients: Deborah Bronston-Culp '80 of Economics, The Rt. Rev. John Harvey Taylor '80 of Political Science, Alondra Nelson '94 of Anthropology, and Mayly Tao '12 of Communication.
Champions of Change: Celebrating UC San Diego’s Volunteer Community
In celebration of Volunteer Appreciation Week, UC San Diego Today featured Economics undergraduate student Tyler Lenart and Economics alum Frank Bellavia ’16 for their community service work on campus and beyond. “Support your local community and your local economy – visit the stores around you, see how people live, why they work, where they are from and get involved to help support them,” Bellavia advised those looking to start volunteer work.
Is the Negative Effect of the $20 Fast-Food Minimum Wage Overblown?
James Hamilton of Economics told the San Diego Union-Tribune, as part of their Econometer panel, that the negative impact of a $20 fast-food minimum wage is very real. “A recent survey found 1 in 8 Americans had worked for McDonald’s at some point in their lives. Now fewer of these jobs are going to be available in California.” Hamilton also contributed to the expert panels on Sea World's declining attendance, whether the Federal Reserve will cut interest rates, and whether California’s Supreme Court should overturn new rooftop solar rules.
Niehaus Wins Econometric Society's 2024 Frisch Medal
Congratulations to Paul Niehaus of Economics on winning the Econometric Society’s 2024 Frisch Medal for his contributions to the paper “General Equilibrium Effects of Cash Transfers: Experimental Evidence from Kenya.” The Frisch Medal celebrates the best applied paper published in Econometrica in a four-year period.
As Population Growth Slows, San Diego May Not Need to Build as Many New Homes
“Has San Diego County already built enough new housing to accommodate all the currently projected population growth through the year 2050? The answer, surprisingly, is ‘yes,’” Richard Carson of Economics writes in a Times of San Diego opinion piece. In spite of this, homelessness rates have not changed much, because most new housing developments are high-end, so a lack of affordable housing in San Diego is still an issue community planners must address.
2024 Economic Report of the President
Research by Juan Herreño of Economics was cited in the 2024 Economic Report of the President released by the White House and its Council of Economic Advisers.
Brian and Nancy Malk Donate to UC San Diego Department of Economics, Naming Malk Hall
La Jolla resident and businessman Brian C. Malk and his wife, Nancy, have pledged a philanthropic gift to support the expansion of the Department of Economics. Slated for completion in 2026 as part of Ridge Walk North Living and Learning Neighborhood, Brian C. Malk Hall will also house the Hub Basic Needs Center and the Triton Food Pantry. “Malk Hall will provide a collaborative space for our faculty, students and our many partners as we strive to foster the thought leaders and changemakers of tomorrow,” said Carol Padden, dean of the School of Social Sciences. Economics chair Marc Muendler added: “Malk Hall will be a magnet for students, faculty and thinkers from across campus and from around the world.”
Sue King, the department's long-serving manager, has retired effective April 30, 2024, and Nicole Daneshvar has stepped into the role of Chief Administrative Officer. To celebrate Sue's outstanding managerial skills and unwavering support for the Economics Department over the course of 13 years, faculty and staff got together on April 18, 2024 and shared memories with Sue. A line-up of faculty and the department's current and former chairs, with whom Sue worked during her tenure at the department, recognized in their remarks Sue's deep commitment to the staff, professors and lecturers, her even-keeled style and adherence to fairness, and her foresight in preparing for her succession. As she embarks on further journeys, the department wishes Sue fair winds and following seas.
How India Could Become an Asian Tiger
The Economist features Karthik Muralidharan of Economics and his new book “Accelerating India’s Development.” Muralidharan’s book argues that a central barrier to India’s development is ineffective governance, and that “changes to personnel, data and federalism would together represent the beginnings of a reform package that could do wonders for India’s governance, and therefore its growth.”
Focus on South Asia
The South Asia Initiative is gaining a new annual forum, made possible by an endowment fund established by Jacobs School of Engineering professor Mohan Trivedi and family. “Our family has participated in and enjoyed various events organized by the South Asia Initiative,” Trivedi told UC San Diego Today. “We are delighted to offer the Gulistan South Asia Endowment Fund as a token of our deep appreciation for the UC San Diego community.” Prashant Bharadwaj of Economics and Saiba Varma of Anthropology are the co-directors of the new forum and steering committee members of the South Asia Initiative. Speaking to the forum’s significance, Varma said: “It will bring speakers of international stature to campus, support greater understanding of the South Asia region from diverse perspectives, and anchor the minor on South Asian Studies.”
Is the Port of San Diego on the Right Track with Its New Master Plan?
James Hamilton of Economics is supportive of San Diego’s plan to create new parks, restaurants, hotels and shops on the waterfront. “We should embrace a vision of a more economically vibrant waterfront while protecting critical natural wetlands. The plan will help bring more tourists and tax revenue to the city,” Hamilton told the San Diego Union-Tribune as part of their Econometer panel. Hamilton also contributed to the expert panels on San Diego’s $4.5 million trash study, Biden’s tax increase proposals, and whether people will continue to move out of San Diego County.
Adapting to Growing Wildfire Property Risk
“With tens of millions of US homes now confronting a growing risk of destruction by wildfires, adaptation is an urgent policy and research challenge,” Judson Boomhower of Economics writes in a Science “Policy Forum'' piece. Featured in the magazine’s ScienceAdviser newsletter, Boomhower’s research explores how protections against wildfires can be more cost-effective and equitable. Boomhower also appears in this UC San Diego Magazine “Economies of Wildfire” story.
What Would It Take to End Extreme Poverty?
“We could end extreme poverty at a price so low that none of us would notice the difference,” said Paul Niehaus of Economics in a TEDx Boston talk about the effectiveness of giving money to people in poverty directly.
Economic Report of the President 2024
Juan Herreño of Economics was among the UC San Diego scholars whose work was cited in the 2024 Economic Report of the President.
Vox's 2023 Future Perfect list - Paul Niehaus is changing how we think about fighting global poverty
Paul Niehaus a Professor of the Department of Economics at UC San Diego was added to Vox's 2023 Future Perfect list - of 50 "thinkers, activists, and scholars working on solutions to today’s (and tomorrow’s) biggest problems."
Honolulu Burn Unit Put to the Test by Fires on Maui
David C. Cho, an Economics alumnus of UC San Diego ’97 and an MD UC San Diego ’03, is a plastic surgeon working for the burn unit at Straub Medical Center in Honolulu who played a significant role in aiding numerous patients as a result of the Maui wildfire.
Research Growth Tops $1.76B With Tremendous Portfolio of Discovery and Invention
Karthik Muralidharan of the Department of Economics and his team contributed to UC San Diego's ambitious research portfolio with a grant to generate evidence-based methods to improve education outcomes at scale in India.
Industrial Disasters May Cause Higher Rates of Disability and Cancer for Future Generations
The Bhopal gas tragedy in India may have had a greater area of impact than previously believed – and a much longer time horizon. A study co-authored by Prashant Bharadwaj of Economics shows effects up to 62 miles away from one of the world’s worst industrial disasters and multi-generational health impacts. The study was covered by NPR, Salon, Forbes and others.
It Will Cost Up to $21.5 Billion to Clean Up California’s Oil Sites. The Industry Won’t Make Enough Money to Pay For It.
According to a recent Carbon Tracker study, ProPublica reports, “the cost of cleaning up California's onshore oil and gas industry will be triple the industry’s projected profits.” While there are inherent uncertainties in estimating future oil revenues, said Judson Boomhower of Economics, the report’s estimates for environmental liabilities track with his own research. “It’s a state in the twilight of its production period, and that means big liabilities,” he said, adding that now is the time for regulators to prevent companies from off-loading their wells to “thinly capitalized firms” that cannot manage the clean-up. The investigative story was picked up by Popular Science, among many other outlets.
Serious Business: Expanding the Talent Pool for a More Inclusive Economy
The Department of Economics and the Rady School of Management have recently formed the Business and Economics Mentoring Program, which provides students with access to academic support, peer-to-peer mentoring, research opportunities and more. The program’s goal is to expand the diversity of students in the Business Economics major that was launched in 2021. The story includes the perspectives of student mentor Andrea Lai, mentee Grace Njuguna and participating Economics faculty member Emanuel Vespa, as well as Julie Cullen, then chair of the Economics Department.
Car Talk
The world has 1.4 billion passenger vehicles. That’s not planes or trains, buses, trucks or even motorbikes. It’s automobiles. And while today’s gas-powered cars are cleaner than they were decades ago, they still produce a tremendous amount of air pollution. Will zero-emission electric vehicles save the day? “Maybe,” says Mark Jacobsen of Economics “but we’re years away from a fully electric fleet.” In the meantime, Jacobsen is working on ways to drive the most polluting cars off the roads – equitably.
NSF CAREER Award
Congratulations to Sara Lowes of Economics on being selected for the National Science Foundation’s most prestigious award for junior faculty. Lowes' CAREER grant will support four projects on one theme – that “insights from anthropology, culture and local context can help explain differences in development policy success across countries.”
An Update on Housing Inflation in the Consumer Price Index
The White House Council of Economic Advisors cited two papers on housing demand by Johannes Wieland of Economics.
Can $4,000 Lift a Family Out of Poverty? New San Diego County Program Aims to Find Out
A federally funded San Diego County program operated by Jewish Family Service of San Diego will give a direct cash payment of $4,000 to 2,250 low-income San Diegans and no payment to another similar group. Researchers will then study the two groups and see how their financial pictures evolve over time. Jeffrey Clemens of Economics told the San Diego Union-Tribune that he’s excited to learn of the local program as it presents a valuable learning opportunity. Pointing to Give Directly, a research and charity nonprofit co-founded by fellow UC San Diego economist Paul Niehaus, Clemens said that while the effect of cash transfers in lower-income countries has been studied and the results are promising, less is known about what happens in a higher income country like the United States. Separately, Clemens spoke with CNN and others about the possible economic fallout of the debt ceiling fight.
How the Migration of Southern Whites in the 20th Century Shaped America’s Landscape
NPR’s Michel Martin speaks to Samuel Bazzi of Economics and the School of Global Policy and Strategy about the lasting cultural and political impact of the northward movement of white Southerners in the early 20th century.
Stiff EPA Emission Limits to Boost US Electric Vehicle Sales
Environmental economist Mark Jacobsen spoke with KPBS about the Biden administration proposing strict new automobile pollution limits that would require up to two-thirds of new vehicles sold in the U.S. to be electric by 2032, a nearly tenfold increase over current electric vehicle sales. Jacobsen said that the effects of this new proposal could greatly reduce the effects of climate change, especially if the country’s electric grid is also decarbonized. It’ll also improve the health of communities across the United States and in San Diego.”
Economic Report of the President 2023
Judson Boomhower and Valerie Ramey of Economics, as well as jointly appointed faculty Alexander Gelber, Joshua Graff Zivin and Allan Timmermann were among the UC San Diego scholars whose work was cited in the 2023 Economic Report of the President.
Two Transformative Campus Projects Get the Green Light
The UC Board of Regents approved two key campus projects during the March meeting: Triton Center, a new integrated central hub for student support, and Ridge Walk North Living and Learning Neighborhood, which will include a new building for the Department of Economics. Construction on both projects is anticipated to start this summer.
Here’s How San Diego County Spent $1.4 Billion in COVID-19 Aid, and What It Could Mean for the Future
Jeffrey Clemens of Economics weighs in, in the Union-Tribune, with analysis of U.S. Treasury data on COVID-19 aid to state and local governments that he compiled and studied.
Helping the ‘Unbanked’
As California mulls entering the banking business to serve disadvantaged consumers, KPBS sought out the expertise of economist James Hamilton. "Where a public bank gets its money to lend and how transparent it is will be important," Hamilton said. "A public banking system could mask lending practices that deserve public oversight."
2 College Friends Created Energy Gum and Mints That Got The Attention of Kevin O'Leary and Robert Herjavec on 'Shark Tank.
Alumni and friends Kent Yoshimura (Cognitive Science) and Ryan Chen (Economics and Chemistry) came up with the idea of making caffeinated gum in 2013 and co-founded Neuro in 2015. In 2020, they appeared on "Shark Tank" and gained the support of two sharks that helped them grow their business, Business Insider reports. Yoshimura, 34, and Chen, 33, met at UC San Diego. There’s also a campus profile about the pair.
America’s Other Great Migration
The Economist reports on research co-authored by economist Samuel Bazzi of the School of Global Policy and Strategy and the Department of Economics, showing how white migrants from America’s South between 1900 and 1940 turned politics rightwards in the areas where they migrated.
Are Companies More Likely to Fire Older Workers in Mass Layoffs?
A Marketplace report on whether older workers are more vulnerable during times of economic uncertainty includes research co-authored by Gordon Dahl of Economics – a working paper from the National Bureau of Economic Research that looks at age-discrimination charges filed with the Equal Employment Opportunity Commission between 2005 and 2015. Dahl and his co-author find that not only does the number of cases filed go up in a poor economy but also, importantly, the number of meritorious cases.
Will California Continue to See a Population Decrease? San Diego Leaders Discuss
California’s population shrank by more than half a million people during the first two years of the pandemic. Can we expect this trend to continue? As part of the San Diego Union-Tribune’s Econometer panel, James Hamilton of Economics said: “The high cost of housing, taxes, traffic congestion, and burdens of running a business in California have been leading people and businesses to relocate to states like Texas and Florida. California could fix all these problems. But until we do, I don't expect population growth to return to its historical pace.” Hamilton was also part of the Econometer panel debating whether tipping has gotten out of control.
Why Republican-Leaning Areas Saw a Rise in Births After Trump’s Election
A study co-authored by Gordan Dahl of Economics suggests that increased economic optimism among Republicans motivated them to have more children relative to Democrats. “The size of the change is equivalent to changes in birth rates that occur after economic shocks or in response to policies designed to affect birth rates.” Reported by SWNS, the story was picked up by the Sacramento Bee, the Independent in the U.K, (linked above) and Yahoo! Finance, among other outlets.
Brazil’s Economic Challenges Are Again Lula’s to Tackle – This Time Around They’re More Daunting
Having studied Brazil in their economic research, and having lived in the country for several years by birth or by choice, Marc-Andreas Muendler of Economics and doctoral candidate Carlos Góes argue in an article for The Conversation that it will not be easy for Luiz Inácio Lula da Silva – now in his third term as president of Brazil – to fulfill the economic promises he made on the campaign trail.
News Archive
Econometer: Should Businesses Pause Advertising on Twitter?, December 2022
Tackling Sexual Harassment Could Bring Sizeable Economic Dividends, December 2022
VoxDev’s Most-Read Article, December 2022
Reversing Losses in Learning After Covid, October 2022
California Team to Uncover Pandemic Impact on PreK-12 Students, October 2022
Math to Make a Difference, October 2022
Kroner Center to Strengthen and Protect Retiree Investments, October 2022
Welcome, Aram Grigoryan, October 2022
Welcome, Nir Jaimovich, October 2022
One of ‘100 Most Influential Academics in Government’, October 2022
Econ Alum Wins Heinz Award, September 2022
Remote Work Drove Over 60% of House-Price Surge, Fed Study Finds, September 2022
The 8 Economists Who Decide If the U.S. Is in a Recession, July 2022
Why Billionaires Are Donating Millions to This Nonprofit That Gives Cash to the Poor, July 2022
Did the Federal Reserve Make the Right Call Increasing Interest Rates?, June 2022
California’s Wildfire Building Codes Make Newer Homes Less Likely to Burn, April 2022
The Resilience of State and Local Government Budgets in the Pandemic, March 2022
What If TV Isn’t Bad for Us?, January 2022
Inflation Inequality, January 2022
Welcome, Juan Herreno, December 2021
Welcome, Steve Wu, December 2021
Graham Elliott elected Fellow of the Econometric Society, September 2021
Graham Elliott named the Sir Clive W. J. Granger Endowed Chair in Econometrics, July 2021
Welcome, Emanuel Vespa, November 2020
Read a collection of Tributes to Distinguished Professor, Emeritus, Mark Machina, November 2020
Welcome, Fabian Trottner, October 2020
Welcome, Denis Shishkin, September 2020
Welcome, Sara Lowes, August 2020
Welcome, Fabian Eckert, August 2020
Welcome, David Arnold, August 2020
Message from the Chair, June 2020
Valerie Ramey awarded 2020 R.K. Cho Economics Prize, May 2020
Valerie Ramey named one of Worth Magazine's 16 Powerhouse Female Economists, May 2019
Team UCSD wins the CFA Institute Local Research Challenge for the 3rd year in a row, Mar 2019
Songzi Du, Econometrica, May 2021
Sara Lowes, American Economic Review, April 2021
Isabel Trevino, Econometrica, Jan 2020
Karthik Muralidharan, American Economic Review, Apr 2019
Johannes Wieland, American Economic Review, Feb 2019
Judson Boomhower, American Economic Review, Feb 2019
Julian Betts, Public Policy Institute of California, Jan 2019
American Academy of Arts and Sciences Elects UC San Diego Chancellor and Three Professors, April 2017
Economics in Action Newsletter Archive
- Issue 25 - Fall 2017
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