AT Micro/Macro Economics

FOR ACCOMPLISHED STUDENTS, REACHING A GOOD COLLEGE ISN'T AS DIFFICULT AS IT SEEMS

http://www.vanityfair.com/business/2014/12/uber-travis-kalanick-controversy

The European Union is considering "unbundling" Google, which controls nearly 90% of European web searches. http://www.economist.com/news/leaders/21635000-european-moves-against-google-are-about-protecting-companies-not-consumers-should-digital

http://www.nytimes.com/2014/11/30/upshot/even-among-harvard-graduates-women-fall-short-of-their-work-expectations.html?smprod=nytcore-ipad&smid=nytcore-ipad-share

Ted Gonder, the CEO OF MONEYTHINK, will speak on how to become a financial success during lunch in room 103. Please attend.

Is Harvard unfair to Asian-Americans?

A PRICE WAR THAT WALMART MAY LOSE

On Friday, Dec. 5, your Stock Selection papers are due. Please see a description of the assignment in the syllabus. Remember you are looking for an undervalued stock that could turn into a five or ten bagger. Make sure you demonstrate it is undervalued with financial statistics like P/E ratios and future revenue growth. I would include quarterly reports and an annual report of the company in your appendices. Your story or rationale for buying the stock is the key to your paper. Review Peter Thiel's chapter 5 when you are trying to determine what makes a great company.

STOCK SELECTION PAPER COMMENT: your topic overview for your stock selection paper is due Monday, Nov. 3. Please write a paragraph about the industry you have chosen or, preferably, the stock in that industry you think is undervalued and therefore you would like to invest in. Once the paragraph is written please post it to this post by clicking on comment, writing the comment, and then publishing it. Make sure you are in your google account before you attempt to do any of this or you will lose your comment. Also, please just use your first name or initials plus your class period to protect your privacy.

Please watch this video after you have read Colander's discussion of comparative advantage in chapter 9.

Please see brief video on market failure versus government failure.

Is up forgiven debt holding the world economy back?

Another technology bubble?

You will write on one of the following: 1. In chapter 7 of Microeconomics , Colander remarks that effective taxation is about extracting needed revenues without drawing substantial attention to the act of doing so. Explain an example of a tax in the United States, either real or hypothetical, that would accomplish the goal of bringing in revenue without causing resentment. 2. In chapter 3 of Naked Economics , Wheelan notes that Americans routinely carry out economic transactions involving substantial amounts of money with complete strangers. In what ways does government allow such transactions to happen, and why is the ability to make such transactions an important part of a market economy?

1. From the "Don't Ask If This Is a Good Market" reading: what are the four stages of the "cocktail party" theory the author puts forward? 2. From the "Learn to Earn" reading: what factors made Johnson & Johnson stock a smart buy in 1993/94?

You will write on 1 of the following topics: 1. A central concept in chapter 1 of Outliers is "accumulative advantage" What is meant by this term, and to what extent do you think that it is responsible for individual success? 2. The central relationship in a stock market is between companies and their shareholders. Shareholders allow companies to expand and develop new products but expect consistent dividends in return. What advantages and problems does this relationship carry?

The Dismal Science, seven Bad Ideas, by Jeff Madrick

Anna Knes thought you might be interested in this video on "The Tragedy of,the Commons "

How does this article change your concept of money?

Economists can't tell Scots how to vote

Something for you to think about. Are the economics of paying cheerleaders the only thing to consider? Is this issue in anyway related to the domestic violence against women that the NFL has mishandled? Are the economics of cheerleaders worth it?

Welcome back and welcome  to AT Economics. We are going to have a great year. The first order of business on Monday is to introduce you to the Blog, the Syllabus, and the Harkness Method.

Steve Jobs by Walter Isaacson The Tipping Point by Malcom Gladwell The Big Short by Michael Lewis Boomerang by Michael Lewis Flash Boys by Michael Lewis The New New:A Silicon Valley Story by Michael Lewis Poor Economics by Barnerjee and Dulfo The Outliers by Malcom Gladwell The Price of Civilization by Jeffrey Sachs More Sex is Safer Sex by Steven Landsburg End this Depression Now by Paul Krugman Thinking, Fast and Slow by Daniel Kahneman The Intelligent Investor by Benjamin Graham Reminiscences of a Stock Operator by Edwin Lefvre Fooled by Randomness by Nassim Taleb Capitalism in the Twenty-First Century by Thomas Piketty Stress Tests: Reflections on a Financial Crisis by Timothy Geithner  House of Debt by Atif Mian and Amir Sufi The Signal and the Noise by Nate Silver Nichel and Dimed: getting by in America by Barbara Ehrenreich

Eye-opener of the week: The only mystery in this world is kindness. Robert Downing Key Dates: 1. During the third class period of the day we will have an essay test on the article about unionizing college football and/or chapter 22. 2. Our Macro Final will be on Monday, May 5. The universe of questions will be the past macro quizzes that visible on EZTEST. The essay will be the question, what have you learned in Macro? 3. AP testing will occur on Thursday, May 15: Macro in the morning and Micro in the afternoon. CLASS ONE: please have read the following article on unionizing  Northwestern college football http://nyti.ms/1hqjjrp : . HOMEWORK: please read chapter 22: Macro Policy in Developing Countries. CLASS TWO: we will discuss the reading. HOMEWORK: Essay Quiz. Question to be determined. CLASS THREE: QUIZ. CLASS FOUR: REVIEW DAY FOR MACRO FINAL.

Schedule for week of 4/21 DAY 1: We will discuss a recent  New York Times  article on the social progress index ( http://www.nytimes.com/2014/04/03/opinion/were-not-no-1-were-not-no-1.html?_r=0 ). HOMEWORK: Read Colander chapter 21, "Macro Policy in a Global Setting." DAY 2: Discussion of Colander chapter 21. HOMEWORK: Read the handout from  The Economist  on historical financial slumps and their relevance for modern finance. DAY 3: We will discuss the  Economist  piece "Five Slumps That Shaped Modern Finance." HOMEWORK: Study for the quiz. DAY 4: Quiz on chapter 21. LONG: We will review AP materials

 Eye-Opener for the week:  Who is my enemy? It is the person whose story I have not heard. Longfellow KEY DATES: 1. During the second class period of the week you will have a Quiz on chapters 18 and 20: I nflation, Deflation and Macro Policy and   International Financial Policy. You will have the following essay : what do we know about the causes of inflation and it's relationship to unemployment?  2. Our Macro Final will be on Monday, May 5. 3. AP testing will occur on Thursday, May 15: Macro in the morning and Micro in the afternoon. CLASS ONE: we will discuss chapter 20 on International Financial Policy. HOMEWORK: prepare for quiz on chapters 18 and 20. CLASS TWO: Quiz on chapters 18 and 20. HOMEWORK:  please read the introduction and chapter 1 in the handout from Michael Lewis' new book,  Flash Boys. CLASS THREE: we will discuss the reading. HOMEWORK: please read chapter 2 in the handout and the article on Bloomberg news about Fidelity trying to set up their o

Schedule for Week of  April 7 NOTES: There are no classes on Friday on account of faculty professional development day. The Macro final will be held  on Monday, May 5. AP testing will be held  on Thursday, May 15 : Macro in the morning and Micro in the early afternoon. DAY 1: Quiz on chapter 17 (Jobs and Unemployment). HOMEWORK: Read Macro chapter 18. DAY 2: Discussion of Macro chapter 18 (Inflation, Deflation, and Macroeconomic Policy). HOMEWORK: Read Predictably Irrational chapter 11 (The Power of Price). DAY 3: Discussion of Ariely's chapter. LONG: We will discuss a recent Supreme Court ruling that struck down limits on individual campaign donations.

EYE-OPENER OF THE WEEK: Fake it till you become it. Amy Cuddy KEY DATES: 1. On Monday, March 31 many of Mr. Janus' students will take the test on chapters 15 and 16. 2. On Monday, April 7 we will have a test on chapter 17, Jobs and Unemployment with an essay asking you to explain the consequences of income inequality. 3. On Monday, May 5 we will have a Macro Final. The universe of questions will be the past quizzes in macroeconomics. There will be an essay question that you will write during the extra half hour of your long period: What did you learn about macroeconomics? CLASS ONE: many of Mr. Janus' students will take a quiz on chapters 15 and 16. We will then read the article, University of Chicago Is Outlier With Growing Debt Load and listen to the 12 minute clip on Bloomberg TV of Charlie Rose interviewing the President of Harvard about the future of the university. HOMEWORK: please read the first half opt chapter 17 in Colander on Jobs and Unemployment up to Fra

Schedule for Week of  3/10 : DAY 1: We will have a study day on account of the history department hosting a job candidate for an interview. You are free to work on your own. HOMEWORK: Read Macro chapter 15. DAY 2: We will discuss Macro chapter 15. HOMEWORK: Read the following two articles on the situation with Russia and the Ukraine: Why Russia Can't Afford Another Cold War:  http://www.nytimes.com/2014/03/08/business/why-russia-cant-afford-another-cold-war.html?_r=0 Kidnapped by the Kremlin:  http://www.economist.com/news/leaders/21598639-west-can-punish-putins-russia-its-belligerence-ukraine-only-if-it-prepared DAY 3: We will discuss the situation in the Ukraine based on the assigned articles. DAY 4: We will have a guest talk from Mr. Stuart Litwin on securitization. HOMEWORK: Read Macro chapter 16. Schedule for Week of  3/17 : DAY 1: We will discuss Macro chapter 16. HOMEWORK: Prepare for the quiz. DAY 2: Quiz on chapters 15 & 16. DAY 3: We

EYE-OPENER OF THE WEEK: Real entrepreneurs make their payroll's on Friday. Alex  Cohen's dad. KEY DATES: 1. During the third class period of the week, you will have a quiz on chapters 13 and 14 plus an essay on the article on Rahm Emanuel's Chicago. 2. On Friday, March 7 your research papers are due. 3. On Friday, March 14 Stuart Litwin will speak to us about securitization and the financial crisis. CLASS ONE: We will discuss chapter 14 on the Financial Crisis. HOMEWORK: the handout on Rahm Emanuel's Chicago. CLASS TWO: We will discuss the article. HOMEWORK: prepare for the QUIZ during the next class period. CLASS THREE: QUIZ on chapters 13 and 24 with an essay on the handout. HOMEWORK: finish up your research papers that are due tomorrow. CLASS FOUR: we will read some of your research papers.

It’s December, 2008 and you’re home  from your freshman year at Tufts University  for Christmas vacation.  At dinner last night, your father told you that Lehman Brothers went into bankruptcy and that the economy is in crisis.  You hadn’t given it much thought as you’ve been focused on surviving the combination of partying and studying you’ve experienced in your first three months away from home.  You therefore listen impassively, wondering how this is the slightest bit relevant to you.  It hits you when your father tells you that the family lost a great deal of money in its investments and that he’s been laid off.  He tells you not to worry, but he’s concerned as to how he can pay for your college, as well as your sister and brother’s tuition at the Lab School.   You didn’t sleep much last night, as you start to think of how you can help your family.  You’re enjoying your college experience, but don’t want to be a burden to your parents.   It would be great if you could find a way

Schedule for Week of 2/24 KEY DATES: 3. On Friday, Feb. 28, Bruce Cohen will speak to us on starting a business. 4. On Friday, March 7th your second research paper is due that will incorporate a behavioral experiment or the creation of a game theory game that you will actual test.  PLEASE SEE THE ABOVE POSTING that explain the requirements for the project in detail. 5. On Friday, March 14th, Stuart Litwin will speak to us about secularization and the financial crisis. DAY 1: We will read and discuss an article from the Economist on the growth of Chicago's tech sector ( http://www.economist.com/blogs/schumpeter/2013/12/chicagos-technology-sector ) .   HOMEWORK: Read Macro chapter 13. DAY 2: We will discuss Macro chapter 13 (Monetary Policy). DAY 3: We will watch and discuss an interview with Larry Fink, CEO of one of the largest money management firms in the world. HOMEWORK: Read Bruce Cohen's piece about the steps in starting a business in preparation

AT Economics / Winter Quarter Research Project Your task this quarter is to construct an experiment that will demonstrate something about daily economic behavior. You will work in pairs for this project. Stage 1: Define the question you want to ask. Dan Ariely’s Predictably Irrational , as well as the companion pieces The Upside of Irrationality and The Honest Truth About Dishonesty , provide examples of such initial questions: for instance, what effect does being “free” have on the attractiveness of a given item or set of items? To what extent are people’s choices about value based on “anchoring” from a popular brand or company, such as iTunes offering songs at $0.99? An alternative approach is to create a decision scenario based on “game theory.” Examples of such economic games can be found in chapter 20 of Colander’s Micro textbook. Stage 2: Define the method of answering your question. You will likely approach this stage as a series of questions that you po

EYE-OPENER OF THE WEEK: If you want to make peace, you don't talk to your friends. You talk to your enemies. Moshe Dayan KEY DATES: 1. On Friday, Feb. 28th, you will have a quiz on chapters 11 and 12 in Colander. There will be no essay. 2. On Wednesday, Feb. 19, your thesis and methodology paragraph is due for your research paper. 3. On Friday, Feb. 28, Bruce Cohen will speak to us on starting a business. 4. On Friday, March 7th your second research paper is due that will incorporate a behavioral experiment or the creation of a game theory game that you will actual test.  PLEASE SEE THE ABOVE POSTING that explain the requirements for the project in detail. 5. On Friday, March 14th, Stuart Litwin will speak to us about secularization and the financial crisis. CLASS ONE: we will review Colander's argument in chapter 11 that the United States is suffering from structural stagnation. HOMEWORK: please read chapter 12 in Colander, The Financial Sector of the Economy.

Schedule for the week of February 10 NOTE: Friday (2/14) classes will not meet on account of the Winter Break day. Classes also will not meet on Monday, 2/17 on account of Presidents' Day. REMINDERS: We will have guest speakers on Friday, February 28 and Friday, March 14. The topics will be starting a business and the financial crisis, respectively. LONG: Mr. Disantis's class will write a short essay (30 minutes) on the concept of GDP. Mr. Janus's classes will read a New York Times article, "The Middle Class Is Steadily Eroding" ( http://www.nytimes.com/2014/02/03/business/the-middle-class-is-steadily-eroding-just-ask-the-business-world.html ). DAY 1: Mr. Janus's classes will have a quiz on chapters 9 & 10 of Macro. Mr. Disantis's class will discuss chapter 10 of Macro. HOMEWORK: Read chapter 11 of Macro (Structural Stagnation Policy Debate). DAY 2: Discussion of chapter 11. HOMEWORK: Read Wheelan chapter 11 (International Economic

EYE-OPENER OF THE WEEK: You can never be too skinny or too rich. Babe Paley  KEY DATES: 1. During the first class period of the week we will have a quiz on chapters 6 and 7. You will also be asked to write an essay on the article, Degrees of Value: Making College Pay Off.  2. On Friday, Feb. 28, Bruce Cohen will speak to us on starting a business. 3. On Monday, Feb. 10 you will have a quiz on chapters 9 and 10. No essay. 4. On Friday, March 7th your second research paper that will incorporate a behavioral experiment or the creation of a game theory game that you will actual test is due.  You should review the literature of your topic and your thesis should be original. 5. On Friday, March 14th, Stuart Litwin will speak to us about secularization and the financial crisis. THE LONG PERIOD: we will read the article, Retailers Ask: Where Did Teenagers Go? CLASS ONE: QUIZ on chapters 6 and 7 with an essay on   Degrees of Value: Making College Pay Off. HOMEWORK: read chapter

KEY DATES: 1. On Friday, Feb. 28, Bruce Cohen will speak to our classes on an aspect of the financial system. 2. On Friday, March 7th your second research paper that will incorporate a behavioral experiment or the creation of a game theory game that you will actual test is due. You should review  the literature but your thesis should be original. The length should be five to ten pages. You may work with one other student.  3. On Friday, March 14, Stuart Litwin will speak to us about securitization and the financial crisis. LONG: We will read and discuss a recent article from Gary Becker on establishing markets for organs ( http://online.wsj.com/news/articles/SB10001424052702304149404579322560004817176 ). DAY 1: We will have a study period on account of senior getaway. HOMEWORK: Read Colander Macro chapter 7, "Measuring the Aggregate Economy." DAY 2: We will discuss the chapter "Measuring the Aggregate Economy." HOMEWORK: Read Ariely chapter 7, "The Pr

EYE-OPENER OF THE WEEK:   Where's the man who could ease the heart like a satin gown? Dorothy Parker KEY DATES: 1. Field Trip this Friday.  We will gather in the foyer of the high school at 7:30 am.  We will then take the 8:02 am train from the 57th St. station to Van Buren, arriving at 8:16 a.m. We will visit the Chicago Mercantile Exchange Visitors' Center at 9:00 am to watch the markets open, hear a talk by trader Gary Lark on how Open Outcry has changed over the years, and watch a film on Commodity Trading. We will then visit the Federal Reserve's Money Museum at 10:30 followed by a talk from one of the Fed's economists, Rick Mattoon, at 11:00.  At noon, we will have lunch at the Boni Vino restaurant and then return on the 2:20 train, arriving back at Lab around 2:35. If you wish to meet us at the Board of Trade or leave from the restaurant, your parents need to email your teacher before Friday. Please dress appropriately, no jeans.  2. On Friday, Feb. 28, Bru

Schedule for Week of January 13 LONG: Discussion of the  Economist  article "Strangest of Bedfellows," which discusses former NBA star Dennis Rodman's visits to North Korea and their implications for US foreign policy. The article can be found here:  http://www.economist.com/blogs/banyan/2014/01/americans-north-korea DAY 1: Discussion of Colander chapter 18 (Distribution of Income). HOMEWORK: Read Colander chapter 20. DAY 2: Discussion of Colander chapter 20 (Game Theory & Decision-Making). HOMEWORK: Read Wheelan chapter 8. DAY 3: Discussion of Wheelan chapter 8 (The Power of Organized Interests). HOMEWORK: Prepare for the quiz. DAY 4: Quiz. Multiple choice questions will cover chapters 18 & 20 of Colander; the essay will come from chapter 8 of Wheelan.

EYE OPENER OF THE WEEK: The mind is its own place, and in itself can make a heaven of hell, a hell of heaven. John Milton KEY DATES: 1.  We will be taking a FIELD TRIP in late January or early February to the Board of Trade to watch the commodities markets open and to the Federal Reserve where we will hear one of their economists speak on the state of the U.S. economy. 2. You will write another paper this quarter but instead of researching a stock you will be asked to do an Ariely-like behavioral experiment and write up the results. You can see examples of his experiments not only in Predictably Irrational but also in The Upside of Irrationality and The Honest Truth about Dishonesty. The paper should be five to ten pages long and its tentative due date is Friday, March 7. Mr. Disantis and I are considering allowing you to work with a peer on the paper but no decision has been made. 3. You will have a test during the third class period on  Real World Competition and Work and the