Roanoke College Economics Program

Roanomics
Volume 3, Issue 2
Winter and Spring 2013

From the Colonel s Desk

I ECON @ Roanoke College Coming to a car window, a dorm room window, or a book bag near you: the much coveted and highly anticipated bumper sticker proclaiming your allegiance to economics at Roanoke College! Be the first person in your dorm, frat, or team to proudly display this sought-after item! Supplies are limited, so get yours today!! Okay, okay, is that too much hype? Perhaps, but the economists are very excited about current students and alums bragging about their experiences in the economics program at good old RC. So here are the ways you can acquire one of our bumper stickers: (1) Currently enrolled students who have OFFICIALLY declared economics as their major or minor will be given a bumper sticker. Please see Dreama Poore to get yours today. She will have a list of majors and minors; (2) Students currently enrolled in an economics class and receive a grade of A or A- , regardless of their major, will be given a bumper sticker; (3) Roanoke College alumni who majored or minored in economics will be sent a bumper sticker, or they can get one during Alumni Weekend by attending the Departmental reception on Saturday afternoon at West Hall. If you would like to have your sticker mailed to your home address, please send me a self-addressed, stamped envelope with first class postage and I will see that you get one. There is no charge for the sticker, but a donation to the Lowry Scholarship fund would be greatly appreciated. You can give to the Scholarship here. Select Other and in Details type Dr. Garry Fleming Lowry Scholarship Fund (ECON) We believe the sticker is a positive way to promote our program, and we are looking forward to seeing them proudly displayed around campus. The program continues to grow in numbers and in quality, and we remain dedicated to enhancing the academic experiences of our students. I hope to visit with many of our alums during Alumni Weekend festivities. Our tent will be with our BUAD friends outside of West Hall.

Advising tips:
The Economics Program offers a major and a minor If you major in BUAD, there are only five additional courses left to complete the minor in ECON (one of which can count as the BUAD elective) Several of the ECON 200-level courses serve as electives in BUAD concentrations ECON 121 can substitute for an INQ 260

Inside this issue:

News and notes Student Editor s note Faculty update Presentations, etc. Fed Challenge 2 3 4 5 6 8 9 10 12 13

Reaching out
This is our fifth release of Roanomics and it continues to grow in popularity. Several alumni have sent emails or posted on social networking outlets that they enjoy reading through the newsletter. We are thrilled that Roanomics is catching on in this way. Reconnecting with alumni was one of the purposes of the newsletter. If there is something that you would like to see in the next issue, send an email to roanokeecon@gmail.com Remember that you can keep up to date on the Economics Program between issues of Roanomics by following our blog, kassensroanokeecon.blogspot.c om, which is updated several times a month, including items on current students.

Blog 10,000 hits Health and the labor market Student comment on the economy Economics Club Upcoming events

Travels with Dr. Bob 16

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News and notes

The Economics Club at Roanoke College continues and with a budget! If you are interested, please fill out the interest form http:// kassensroanokeecon.blogspot.com/2012/01/ economics-club-at-roanokecollege.html Danielle McCloskey '10 and her husband Michael '10 welcomed their first baby, Mathew Grayson, on February 16th at 7:50am. He was 6lbs. 7oz. and 19 inches. Roanomics first birth announcement! Greg Long `14 welcomed a son into this world March 17th! Congrats! Two birth announcements in one newsletter! The Virginia Consumer Sentiment and Price Expectations Indexes will now be released each quarter! The February 2013 report can be found here. Jorge Guzman Correa `12 kicked off the RC Economics Programs What can I do with a degree in economics? series with a presentation on his work with the Peruvian government. The Economics Club travelled to Richmond to visit the Federal Reserve and Bank and support Roanoke College economists (students and faculty) presenting their research at the 2013 VAE Annual Meeting. Be sure to contact Conrad Clausen if you are interested in joining the Economics Club. They are meeting each Wednesday night at 8:00 pm this semester in the Ramser-Beamer Meeting Room. Fun things to come! Dr. Alice Kassens officially moved into the position of President of the Virginia Association of Economist March 21. She will serve until the next annual meeting in March 2014. Vincent Pennix `12 is moving to NYC for a new job with the Pi Lambda Phi Fraternity (Pilam), an organization founded at Yale University in 1895. Vince will help get the fraternity going at a college in the City. Good luck Vince! The Economics Program sends out deepest sympathies to S.J. Brussard `10 and his family Please let us know what is new with you at roanokeecon@gmail.com or fill out our form at kassensroanokeecon.blogspot.com

Danielle McCloskey `10

DID YOU KNOW?

41
There are currently 27 declared majors and 14 declared minors in the Economics Program. Declare yours here

Where are our alumni now?

Cedric Porst `09 is a Senior Controller at LOreal in Germany although he writes that he will be moving to Paris soon for a position in his groups Internal Audit Department and that he is excited about the travelling that he will undertake over the next few years. Andy Gleason `08 is a Credit Specialist at IDEXX Laboratories Inc. Stephanie Melnik `09 is a Director at Awesome Bars in San Francisco Megan Rhodes `11 is an Associate Agent to Managing Director at Northwestern Mutual in Richmond, VA Nicholas White `12 wor ks in Investors Services at Brown Brothers Harriman in Boston, MA Fill out the alumni survey at kassensroanokeecon.blogspot.com or connect with Dr. Alice Louise Kassens on Linkedin.com Have career advice or contacts for our current Economics students? Please send an email to roanokeecon@gmail.com. My overall education at Roanoke College, and particularly my economics education, prepared me for dealing with the extremely varied career and educational experiences I have had throughout my life -Roanoke College alumna `72 Give us your comments via alumni survey on our blog and they might be included in the next issue of Roanomics!

Cedric Porst `09

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Student Editor s Note: Kerry Murphy `13

I am once again shocked by how my time has flown here at Roanoke College. As I embark on my last semester, I find that I am reflecting often on the moments spent outside the classroom but also experiencing what these past years have looked like academically. In my class, History of Economic Thought, commonly dubbed Seminar, I am getting a picture of what it is that I have been learning through all of my earlier economics classes. In this time, I enjoy the discussions, discover a sense of completion, and feel moments of gratitude towards my previous economic professors. In my seminar paper, I wish to discuss what behavioral economics tells us about ethics and how that is related to the 2007 financial crisis. I am excited about writing this paper and the learning it has brought along the way. I still wish to pursue a career once I leave Roanoke College, in either accounting or a financefocused field. Though I am not concrete in my plans upon graduation, I am confident with the knowledge that I am taking with me. NOTE: Kerry has been an invaluable resource to the Economics Program. She has helped Dr. Kassens run the Economics Assessment Plan and has been the Student Editor for Roanomics. Her wonderful smile will be missed by many when she leaves Roanoke College in May. Thank you Kerry for your hard work and dedication to the Economics Program. The best of luck to you in your life after Roanoke College. You will do well. ~ Dr. Kassens
(Blogging in Dr. Kassens Principles course) helped me to become more aware of how economics affects so many different areas [enabled me] to understand how what we were learning in class could tie in to other economic events in our country and worldwide.

Kerry Murphy `13

"A lot of people talk about majoring in business ... actually, economics is even better, because you learn a lot more quantitative analysis, a lot more statistics, and things that are applicable in kind of this big data world," she says. "Similar to physics, it's really good for salary growth overall." -Kelsey Sheehy, US News and World Report, College Majors with the Best Rate of Return on Investment, September 12, 2012.

Summer & Fall 2013 Courses

Summer 2013 ECON 122 Principles of Macroeconomics Kassens (June) Fall 2013 ECON 121 Nik-Khah, Hernandez ECON 122 Fleminig ECON 257 Competition, Monopoly and Public Policy Nik-Khah ECON 267 Labor Economics Kassens ECON 232 Money & Banking Fleming ECON 321 Intermediate Theory: Macroeconomics Hernandez ECON 448 Econometrics Check Webadvisor for all official times and section numbers. Kassens INQ 260EC Hernandez

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Faculty Update: Dr. Alice Louise Kassens

It has been a busy winter and early spring! As President-elect of the Virginia Association of Economists I was in charge of organizing our annual meeting held March 21-22. The 2013 meeting was at the Federal Reserve Bank of Richmond and new security rules provided an additional challenge in the organizational process. Gone are the days when a picture ID gets you into the Bank. I hear in the really old days, conference participants, including Garry Fleming, could pull up to the marble front circle and walk right in! Now all registration must be completed 72 hours ahead of time and sent to security. Attendees must each be escorted to the 23rd floor for the conference; no one can leave unless accompanied by an escort. Additionally, presentation files must be sent at least 24 hours ahead for loading on the Feds laptops. No external drives or sources are permitted. My greatest fear was that someone would not register early and be upset when turned away by security. Luckily the conference went off without a hitch. We had tremendous support from our contact at the Fed, Stephanie Pelletier. I had the honor of presenting IPOR Virginia Consumer Sentiment and Price Expectation data in the plenary session. I was in great company as Chris Chmura (Chmura Analytics) and Steve Fuller (George Mason UniversiSandra Peart and Alice Kassens ty) presented data on the nation and northern Virginia, respectively. Our Sandridge Lecture at the banquet was given by Dr. Sandra Peart. Amongst her many accomplishments is the book Vanity of the Philosopher with David Levy (who also attended our conference.) Her lecture on the potential for special interests to cloud results in economics and other fields was compelling and stimulated a vibrant discussion afterwards. It confirmed the way that I teach econometrics and its use and place in economics. It is a tool of inquiry that should be used responsibly. Friday morning began with the Business Meeting in which the role of President of the organization was transferred to me along with the VAEs fancy gavel. I will hold the position until March 2014. Joe Turek of Lynchburg College was elected President-elect and will serve the year with me. Two Roanoke College students presented in an undergraduate research session on Friday morning: Katie Thornton and Jimmy Bradshaw. I chaired the session and was impressed with their poise and professionalism. Katie presented her work on microfinance in Morocco and Mexico while Jimmy showcased his paper on NCAA mens basketball, including his own regular and post-season performance metrics. In the second session of the day I presented my paper Do as I say and as I do: An adaptation of the Mentor Demonstration Model which was published in October 2012. The discussant for the paper was Bob Winder of Christopher Newport University and gave both the paper and the teaching method high praise. Overall the conference was extremely exhausting but productive, joyful, and successful. Attendance was over 60 and the program was one of the strongest on record. Hopefully some of you will attend the 2014 meeting. I hope to host it at Roanoke College!

Alice Kassens

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Presentations
Dr. Alice Louise Kassens The Impact of Clinical Depression on the Labor Market Outcomes of Young Adults, American Economics Association Annual Meeting, San Diego, CA Katie and James The giving and getting of mentorship, Roanoke College Faith and Learning Series Consumer Sentiment and Price Expectations in Virginia, Virginia Association of Economists Annual Meeting, Richmond, VA Do as I say and as I do: Adaptation of the Mentor Demonstration Model, Price Expectations in Virginia, Virginia Association of Economists Annual Meeting, Richmond, VA The Impact of Clinical Depression on the Labor Market Outcomes of Young Adults and PPACA, Roanoke College Coffee Shop Series Katherine Thornton `13 The Impact of Socioeco-

finance, Virginia Association of Economists Annual Meeting, Richmond, VA James Bradshaw `13 One and done or four more years, Virginia Association of Economists Annual Meeting, Richmond, VA Dr. Edward Nik-Khah

nomic Context on the Success of Micro-

The Economic Origins of Pharmaceutical Ignorance", Economics Faculty Discussion Group, Vir ginia Military Institute

Publications
Dr. Alice Louise Kassens Consumer sentiment falls to begin new year. (2013). Boston, MA: MassINC Polling Group. http:// www.massincpolling.com/? p=794 Consumer Sentiment and Price Expectations in Virginia. (2013) Salem, VA: Institute of Policy and Opinion Research. (February 2013) Dr. Edward Nik-Khah "A Discipline in Trouble," Journal of Economic Methodology 20(1): 93-98 Dr. Robert Stauffer (2013, January 9) Excess Reserves Used by Banks in Lending [Letter to the Editor]. The W all Street Journal, A16. (online version)

Coffee Shop Series

Fall 2012 Academic Honors

Presidents List Katie Thornton Emma Webb Kyle Hagens `13 Deans List Jimmy Bradshaw Ted Ellis Adrian Gillam Tiffany Ingram Athletic Honor Roll James Bradshaw Maxwell Carroll Conner Dubois Kyle Hagens Christopher Migliarese Conner Dubois `13

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Fed Challenge: Coach & Lecturer Michelle Crook
The theme of my sixth Fed Challenge Team centered on uncertainty. The Team identified uncertainties in the labor market, consumer confidence, the Fiscal Cliff, and the impact of Hurricane Sandy as threats to the economy. Additionally, Hurricane Sandy cancelled the Teams original presentation date leaving us uncertain when we would present our research. When the new presentation date was announced, new employment data had been released leaving all eleven teams representing colleges and universities throughout the Commonwealth of Virginia scrambling to update the final scripts. The academic competition, regionally sponsored by the Federal Reserve Bank of Richmond, is designed to expand the understanding of the Federal Reserve System's unique role in the economy and the importance of monetary policy conducted by the Federal Open Market Committee. Encouraging a better understanding of the nations central bank, the forces influencing economic conditions in the United States and abroad, and the ways the economy affects consumers lives, the competition develops students' research, presentation, and critical thinking skills. This years team included Kerry Murphy, Ian Kervick-Jimenez, Brunella Salazar, Tiffany Ingram, and Conner Dubois. I would describe this years team as cohesive, a kindred of kind souls, intellectually curious, and conscientious. Despite not advancing to finals, I have never had a team more accurately predict the outcome of the FOMC meeting following the competition. I even questioned if the FOMC read our script and published it as their press release in the weeks following our presentation. See the table below for a comparison. We delivered our oral presentation to a panel of Federal Reserve economists, who then rated our performance based on content, teamwork, and ability to provide impromptu responses to spontaneous questions. A special thank you goes out to Roanoke College Professor Emeritus, Dr. Robert Stauffer, Dr. Alice Kassens, Dr. Garry Fed Policy Decision December 12, 2013 Continued QE3 and added Treasuries to MBS Announced Forward Guidance based on unemployment and inflation 6.5% Fleming, and Dr. Edward NikKhah who ensured that this years team was on the right path a several key stages of the semester. As the Coach, I had two gratifying moments during the semester. First, it was a privilege to hear Jeffrey M. Lacker, President of the Federal Reserve Bank of Richmond, deliver his economic outlook at The Hotel Roanoke and Conference Center on October 15, 2012. Not only did team member Brunella Salazar and Dr. Robert Stauffer join me, but all three of us were able to ask Mr. Lacker very specific questions about the economy. Second, I was gratified as I read the FOMCs press release in the Wall Street Journal in December as our semester concluded because this years team got it right! With absolute certainty, this years team represented Roanoke College well and made me proud!

Michelle Crook

Date of Delivery Regarding QE3 Regarding Forward Guidance Maximum Rate of Unemployment before interest rates are changed Maximum Rate of Inflation before interest rates are changed Regarding Operation Twist

Roanoke College Recommendation November 9, 2012 Continue QE3 but add in Treasuries with MBS purchases Implement Forward Guidance based on economic metrics such unemployment and inflation 7.3% begin cutting back on QE3

2.3%

2.5%

Extend and continue

Continued but instead of selling short-term Treasuries the Fed began funding its purchases by adding reserves to the banking system

Volume 3, Issue 2
Fed Challenge: Student reflection
Have you ever seen someone hanging from the side of a building in order to clean it? I did, at the Federal Reserve Bank in Richmond, Va. The Fed Challenge was a wonderful learning experience and very interesting as well. At the beginning of the semester, every team member chose a topic on the economy that they would like to study more deeply than another part. I chose Gross Domestic Product (GDP). I had heard about GDP of course in class, but I had never gone into a lot of depth with it to see what it was really all about. After studying GDP for numerous weeks, it was time to put my knowledge together with the rest of the team and make our economic analysis. Over fall break we were to have our scripts typed and finished before we got back to school; it was crunch time. Our team decided to use Prezi for our presentation and one member created it, while the rest of us had speaking parts. We gave a practice presentation for some economics faculty, which was kind of scary to be honest. I did not feel too good about our presentation after we finished presenting it to them. We made changes and revisions to improve it afterwards. Our original presentation date was postponed due to Hurricane Sandy. Before I knew it, we were meeting in the parking lot and loading up the van to head to Richmond. We had a lovely dinner, and stayed in a very nice hotel. Roanoke College was definitely able to make us feel important while in Richmond. Presentation day was extremely crazy. After we went through security, and we were in the lobby waiting for our turn, I was very nervous. I had so many different thoughts running through my head. We finally got called in the presentation room, and after I said my first part, I felt a weight lifted off my chest. Our team did really well as a whole and the judges were pleased. This was one of the best experiences I have ever had. There just are not words to explain all the emotions you go through, and what you see. I wish I could go back because now I know I wasted a lot of time being nervous for no reason. It was a lot of fun, and I learned so much. After practicing and memorizing my part of the script, I do not think I will ever forget those lines. It was a lot of hard work through-out the semester, but it all paid off in the end. Studying the economy is great, but actually getting to go to the Federal Reserve and suggesting new monetary policies and a new strategy to relieve the economy was amazing. I have never taken another class that can even compare to the type of work and final presentation that is involved with The Fed Challenge. I would recommend it to anyone who is offered the chance and is interested in the economy. Talking to judges and seeing the Fed is awesome, I would love to be able to take this course again. Also, a special thanks to Coach Crook, for being so patient with us throughout the semester and always there to help. Tiffany Ingram `13

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Roanoke College Economics Blog Passes 10,000 Hits
Dr. Alice Louise Kassens started the Roanoke College Economics Program Blog in 2010 as a way of promoting the Economics Program and sharing all of the great things that the faculty and students accomplished. Blog posts have ranged from research updates for faculty and students, awards and recognitions, commentaries on economic issues, and upcoming events. The blog passed 10,000 hits in early 2013. In honor of this milestone Roanomics editors Dr. Kassens and Kerry Murphy `13 decided to share the blogs top ten list. Enjoy and thank you for all of your support.

ou can get updates on new blog posts by following us on Twitter @roanokeecon

Date
TOP REFERRING SITES: Google Facebook Roanoke.edu 4/19/2012 3/26/2012 4/12/2012 11/6/2012 11/9/2010

Title
McGraw-Hill PowerPoint Slides for Dornbusch, Fischer, and Startz Roanomics is here! Vol. 3, Iss. 1 An Election day distraction Congratulations Chris Kwaramba `12 Congratulations Sara Caudle `12 Roanomics Volume. 2, Issue 2

# Hits Summary
631 A description of the supplemental teaching materials Dr. Kassens prepared for a widely used macroeconomics textbook. The fourth issue of the Economics Program newsletter Note on Chris Kwarambas successful defense of his Honors in Major project Note on Sara Caudles successful defense of his Honors in Major project The third issue of the Economics Program newsletter Link to TV interview of Dr. Kassens on consumer sentiment and Black Friday Overview of Dr. Kassens ECON 122 student commentary on the fiscal cliff Link to one of Kassens papers that made an exclusive list in 2011 Note on Sara Caudles acceptance to prestigious research conference Announcement and link to joint effort accepted for publication

269 211 210 169 158 146 140 138 136

ant to read some other economics blogs? http:// econacademics.org/ has many links Dont forget to visit Dr. Kassens blog or its concise complimentary Tumblr page which has frequent posts on economic research and data

11/28/2011 Dr. Kassens on News 7 11/20/2012 The fiscal cliff: Avoid it or take the plunge 12/15/2011 Kassens paper makes top ten list on SSRN 1/8/2012 Sara Caudle `12 accepted to present at NCUR

10/22/2012 Paper by Dr. Kassens and three students published

NOTE: The # hits does not count the blog authors access.

Page views by operating system

Page views by search engine

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Research spotlight: Mental health and the labor market

The relationship between mental health and labor market outcomes is complex. Illnesses such as depression can reduce labor productivity, thus increasing the likelihood of reduced hours of work and unemployment. Additionally, unemployment can generate or exacerbate depression. The simultaneity between depression and labor market outcomes makes it difficult to estimate the effects of depression on these outcomes. Dr. Alice Kassens and Dr. William M. Rodgers III (Rutgers University) have been working on a project to parse out these effects. Some of their results were presented at the American Economic Association Annual Meeting in San Diego in January 2013. Kassens and Rodgers focus on young adults (20-34 years of age) as differences across generations acceptance of mental illness, willingness to seek help, and likelihood of admitting to having this type of illness likely exist. Depression data is partially drawn from survey data and the focus on the younger group should lessen the reporting error stemming from these differences. One labor market outcome of interest is hours of work. It is hypothesized that depression reduces hours of work as the illness interferes with day to day tasks, efficiency, and productivity. Because the size of the impact of depression on hours of work could vary across the hours distribution, the effect is estimated using a quantile regression technique. The results are shown in the figure below. Depression is measured two ways: 1) self-report by survey respondents (an answer to one question about feeling sad, empty or depressed) and 2) clinical measure using the PHQ -8 screener. It is expected that the clinical measure is subject to less measurement error than the self report. It is clear that the impact of depression is greatest at the lower end of the hours distribution, particularly for the clinical measure of depression. The values in orange indicate the median hours of work in the quintile and the black values indicate the quintile (for example at the first quintile, the median person works 25 hours per week). Specifically, at the first quintile, depression reduces hours of work by just over 7 hours per week. Here the median worker who is depressed will work 18 hours per week rather than 25, a 28% reduction. Comparatively, at the third quintile, depression only reduces hours by 1.5 hours per week, reducing hours to 38.5 per week. Beyond the fifth quintile estimates are not statistically significant. These results should be considered by mental health policy makers as labor markets improve from the recent recession.

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Student Comment on the Economy

As a graduating senior, the current health of the economy has taken on a new importance in my life. Soon I will leave the hallowed halls of West and embark on an entirely new adventure filled with grocery bills and rent payments and hopefully some stable source of income. Since my time at Roanoke began a short four years ago, though, its difficult to say whether the economy has actually improved or not. When I entered college in August 2009, Virginias unemployment rate was on its way up, peaking at 7.4% by years end. By the end of 2012 the unemployment rate in Virginia had itself dropped to 5.6%, but the overall health of the economy doesnt seem much rosier. Americans are concerned about rising health care costs and the lack of a feasible proposal to address the national debt, as they should be. The new bright, young minds ready to enter the workforce after graduation are questioning the value of their college degrees in light of immense student loans and weak job opportunities. Perhaps what weve gained in human capital weve lost in never-ending interest payments. As the United States continues down a path of uncertain recovery, for now I think Ill postpone the real world for just a bit longer and head to graduate school instead.

Katie Thornton `13

Katie Thornton `13

Want macroeconomic data? Federal Reserve Economic Data (FRED) is a great secondary source of government data. FRED recently released an excel add-in to increase the ease of data manipulation. It was used to generate the plot of the ICS below. Over 64,000 data series are available free of charge.

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FEATURE
GRADUATE SCHOOL ADMISSIONS
We have had a banner year for graduate school admissions for both current seniors and alumni. If we have missed you, please drop us a line at roanokeecon@gmail.com Yahia Abuhashem American University Economics, PhD Zach Birtsch James Madison University College Student Personnel Administration, Masters The College of William and Mary Education Leadership, Masters of Education Chanho Song Brandeis University Business, Masters SUNY-Buffalo Economics, Masters Vanderbilt University Economics, Masters Katherine Thornton American University Statistics, Masters University of Pittsburgh Statistics, Masters Virginia Tech Statistics, Masters

Samantha Sterba `09 is currently working on her PhD in Economics at the University of Massachusetts at Amherst.

Sterba `09 She advises Roanoke College student going straight to graduate school from Roanoke College: Don't be intimidated by your peers who may be entering your program with graduate degrees already completed and years of experience and skills already acquired. The admissions committee already made those comparisons and you made the cut. Stay focused on your goals and make it a point to take care of yourself.

re you considering going to graduate school? If you are considering a graduate program in economics, a good reference to get you started is http://www.aeaweb.org/gradstudents/

Where did your professors go for graduate work?

Dr. Garry Fleming, University of Kentucky

Dr. Alice Louise Kassens, North Carolina State University

Dr. Edward Nik-Khah Dr. Pablo Hernandez, University of Notre Dame

Talk to any economics professor if you are interested in pursuing a graduate degree. We are more than happy to help.

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Economics Club: Message from the President

The Economics Club has been busy this spring with planning events for the upcoming academic year, and making an entertaining and informative agenda for the rest of the semester! This past week, the Economics Club traveled to the Richmond Federal Reserve Bank for the Virginian Association of Economists annual meeting. The club was in support of their peers and club advisor, who presented at the conference. The club also had the wonderful opportunity to tour the Federal Reserve Bank. This week, there are two economic speakers on campus. The club is hosting Dr. Alison Wellington, a Deputy Project Director of Policy Research at Mathematica on Wednesday March 27th. She will continue to talk on the theme of What can I do with a degree in Economics?, following a Roanoke alum sharing his experience working for the government of his native Peru, with an economics degree. The club has also been busy with handwriting letters to potential Roanoke students who have applied to the college and marked interest in studying Economics. We want to make them aware of our presence on campus, and to make ourselves available to answer any question they may have about the Economics program or any of our activities on campus. We are in the process of planning a networking event during Alumni Weekend. Details to follow.

Conrad Classen

Economics Club: Comment

Bangladesh could be well described as a country which is progressing in spite of itself. Despite a mere fifty percent literacy rate, which is the product of miniscule education spending and a host of natural problems such as deforestation, erosion, and pollution, it saw a very significant rise in per capita income since the last year, over $US 1,000. This being said, the economic health of the nation does not accurately describe the health of an enormous section of the population. In Bangladesh, income disparities are very large: the top 10% of earners net over a quarter of GDP, but the lower fifty percent account only for 20%. Many of the more rural Bangladeshi people subsist at a level of extreme poverty, and the problems listed above are mostly their burden to bear. Fortunately, the people of Bangladesh have created a solution to their problem of poverty through microlending. Pioneered by the Grameen bank, microlending is a practice that helps poor persons who would not typically qualify for a traditional loan start a cottage industry. It has been extraordinarily successful financially, with a repayment rate of 98%, and has been quite effective at lifting the poorest of the poor out of their state, especially women. Both the United States (where Grameens presence is small) and other sections of the world should further adopt a similar model of microlending. In addition to combating poverty, it also combats social injustice such as the economic oppression of women in third-world countries. Through forward-thinking movements such as this, the world will be better prepared for equality, tolerance, and healthy growth.

Ted Ellis `15

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What can I do with a degree in Economics?

A question that many undergraduates have. The Roanoke College Economics Program is dedicated to not only providing a rigorous education that examines the relationship between economics and other areas of knowledge, but also helping our students move on to the next stage of life. The Roanoke College Economics Program will offer several sessions each year to address this question. Sessions will include presentations and Q & A with recent alumni. Two sessions will be held in the spring of 2013. Alumnus Jorge Guzman Correa `12 will present some of his work with the Peruvian government concerning the economic impact of social aid on the poor in the Peruvian highlands March 26, 6-7 pm in Kime. J or ge was an economics major and putting his degree to use straight out of college. After his presentation, students are encouraged to ask questions about how to start a career in economics. The Roanoke College Economics Club presents an evening with Dr. Alison Wellington of Mathematica Policy Research (www.mathematica-mpr.com) March 27, 8-9 pm in the Ramser-Beamer Meeting Room. Dr . Wellington ear ned her PhD in economics fr om the University of Michigan and specializes in health and labor economics. Prior joining MPR she taught undergraduate economics for 17 years and has had several papers published in highly ranked peer-reviewed economics journals including the Journal of Human Resources. Dr. Wellington will share stories about her experiences in academia and at MPR and will answer questions about how to get started in economic consulting. If you have suggestions for future sessions, please contact the Roanoke College Economics Program at roanokeecon@gmail.com or reach out to us on Twitter @roanokeecon We look forward to seeing you soon!

Guzman Correa

Alison Wellington

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Economics Program
221 College Lane Salem, VA 24153 Phone: 540-375-2426 Fax: 540-375-2577 E-mail: roanokeecon@gmail.com

...Because we view economics as solidly within the liberal arts, we are committed to examining the relationship between economics and other areas of knowledge. Students will therefore find it to be an excellent complement to many other majors, including, but not limited to public policy, sociology, history, environmental policy, mathematics, biology, and business administration, as well as concentrations such as gender studies and peace and justice studies. For information about the Economics Program contact Dr. Garry Fleming (fleming@roanoke.edu) For comments or suggestions about the newsletter email roanokeecon@gmail.com Read our blog: kassensroanokeecon.blogspot.com Faculty Editor: Dr. Alice Louise Kassens Student Editor: Kerry Murphy 13

Follow us on Twitter @roanokeecon Tell us what is new with you roanokeecon.blogspot.com Join the BUAD/ECON Facebook page

Travels with Dr. Bob

In February, we decided to skip our usual Florida trip and headed west to sunny Arizona. We flew to Phoenix and stayed in the Phoenix/ Scottsdale area for a few days before heading south to Tucson. A bonus was a visit with a long-lost cousin who recently moved to Phoenix. He's a REAL doctor, meaning he doesn't have a Ph.D., but he heals people and makes bundles of money. children. This program, begun in the 1870's, forcibly removed children from their homes and sent them to schools where all traces of their native language and culture were eliminated. This largely forgotten episode in American history is a cautionary tale concerning the wisdom of our federal government. pick-ups, while I was driving a rental Nissan from Thrifty Rent-a-Car, the very same company that grossly overcharged us in Germany a few years ago. After 26 miles of rattling and shaking, I think I'm just about even with Thrifty!
Bob Stauffer, Professor Emeritus

We are now planning a trip to Paris and Normandy this spring, and I'm hoping the From Phoenix we took the Euro will slide a little more scenic route over to Globe, in value (it's now at about We stayed in Scottsdale AZ, a gritty copper mining $1.30). The resilience of the which is a haven for affluent town and the polar opposite of Euro, despite massive ecoretirees. Upscale shops and Scottsdale. We followed the nomic problems in the Eurogood restaurants are everyApache Trail, a mountain zone, is further proof where; there is even a Bentroad built around 1900 that super easy Federal Reley dealership tucked in beto provide supplies for the serve policy is distorting martween Lexus and Mercedes. construction of the Theodore kets. However, the best examBesides shopping and dining, Roosevelt dam, one of the ple is the recent all-time highs we went to the Heard Muse- first federal water projects in of the Dow-Jones; despite um, a world-class exhibition Arizona. The Trail includes stagnant GDP growth, high of Native American art and 26 miles of rough dirt road, unemployment, increases in history. The most memorable with hairpin curves and one payroll taxes, and a dysfuncexhibit was a history of lane sections. Our fellow trav- tional government in D.C. (as boarding schools for Indian elers were driving SUV's and in Deficit City). But not to

worry: Ben Bernanke and the Fed are printing dollars at the rate of over $80 billion a month. If this continues for most of the year, fasten your seat belts--it's could be a rough inflationary ride ( a lot worse than the Apache Trail.) There's also a high chance the stock market will decline substantially when the Fed decides to slow down the monetary printing presses and allow interest rates to return to more normal levels. Happy Travels, Dr. Bob