Graduate Core Curriculum

The core of the graduate curriculum is an integrated set of subjects in economic theory, mathematics for economists, econometrics, and economic history.

Economic Theory

The core subjects in economic theory consist of two subject- years equally divided between microeconomics (14.121 through 14.124) and macroeconomics (14.451 through 14.454). The material is divided into half-semester modules. The microtheory and macrotheory sequences start in the fall term of the first year and continue in the second term. Qualifying examinations on each of these half-semester subjects must be passed with a minimum grade of B in order to satisfy this part of the core requirement; a grade of B-minus is not acceptable.

Students who feel sufficiently well prepared in the subject matter of any of the theory core half-subjects may take a qualifying examination, either before or after a particular set of lectures is offered. Only a passing grade is recorded when the examination is taken in advance of the lectures. Should a student fail to pass, he or she can enroll for that particular section of theory and take the regular examination at the end of that term. Should a student pass some portion of the theory sequences by a qualifying examination, there is no further requirement for course work in that particular area. In principle, it is possible to pass all eight units of the theory core in this way and to proceed directly to more advanced or specialized work.

Mathematics for Economists
The minimal level of mathematics necessary for success in the required subjects is calculus and linear algebra. Both are required for Statistical Methods in Economics (14.381). Mastery of the core theory and macro subjects also requires this level of mathematical background, although no formal mathematical prerequisite is specified. Students who have had less mathematics and those who want to build a strong background normally take Mathematics for Economists (14.102) in the first term. An additional course, Dynamic Optimization and Economic Applications (14.128) is offered during the Independent Activities Period. Further work in mathematics can be taken in the Mathematics Department.

Econometrics
The econometrics and statistics core requirements can be satisfied in one of the following three ways:

A) A two-semester option of Econometrics I (14.382) and Econometrics II (either 14.384 or 14.385). A major part of the requirement for econometrics II is the completion of an empirical research paper, which is due near the end of the Independent Activities Period in the second year. Satisfactory completion of Statistical Methods in Economics (14.381) or equivalent is a prerequisite for 14.382.

This option will enable students to read intelligently all empirical research. In addition, students will be prepared to conduct empirical research suitable for publication in any economics or econometrics journal. With the completion of 14.386, Topics in Econometrics, and some additional preparation in probability theory and statistics, students will also be able to work in econometric theory.

B) A one-semester option of Applied Econometrics (15.034), plus Econometrics Paper (14.389) that requires the completion of an empirical paper approximately the equivalent of a term paper. Satisfactory completion of Statistical Methods in Economics (14.381) or equivalent is a prerequisite for 15.034.

This option provides a sufficient understanding of econometrics to intelligently read empirical research in all but the most technical journals. In addition, students will be prepared to conduct empirical research suitable for publication in the less technical economics journals.

C) A two-semester option of Introduction to Statistical Methods in Economics (14.30) and Econometrics (14.32). An empirical paper is required for 14.32. This option provides the absolute minimum understanding of econometric theory and applications. It will enable students to read intelligently most empirical research in nontechnical economics journals.

Option (A) satisfies both the core and the field requirement in econometrics and, for most students, represents the Department’s “recommended” choice. Most of the graduate students select this option.

Option (B) satisfies the core requirements, but not the field requirement in econometrics. This option is designed for the student who does not want or does not need as much exposure to econometric theory as is provided in option (A).

Option (C) is exercised only under exceptional circumstances nd only with permission of the student’s Graduate Registration Officer.

The option best suited to the student’s program should be selected after consulting with members of the faculty teaching conometrics. Qualifying examinations are offered for all core courses, however, to qualify out of Econometrics II a student must also satisfy the requirement for the empirical paper by completing 14.389.

Research Minor
Students may offer a "research minor" in place of one of the standard minor fields. This is done by enrolling in 14.191 for a total of two semesters. This course allows students to devote approximately ten hours per week to research projects. These projects are selected by the student and carried out as a supervised research course. The goal of this course is to develop exposure to the research process during the first two years of the Ph.D. program. Students are encouraged to work with faculty in the fields in which they plan to specialize, thereby providing a transition to thesis research.