IHS Graduate Programs in Economics

2014 – 2016

Contact:Institute for Advanced Studies

Department of Economics and FinanceStumpergasse 56

A–1060 ViennaAustria

Tel: +43 1 59991 250email: economics@ihs.ac.at

http://economics.ihs.ac.at

Contents

1 The Program 1

1.1 History of the IHS Economics Program . . . . . . . . . . . . . . . 1

1.2 Degrees Offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.2.1 Master, Economics . . . . . . . . . . . . . . . . . . . . . . 1

1.2.2 PhD, Economics . . . . . . . . . . . . . . . . . . . . . . . 2

1.2.3 PhD, Finance . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.3 Admission to the Master in Economics . . . . . . . . . . . . . . . 2

1.3.1 Prior Preparation . . . . . . . . . . . . . . . . . . . . . . . 2

1.3.2 Application Procedure and Requirements . . . . . . . . . 3

1.3.3 Timeline for Admission . . . . . . . . . . . . . . . . . . . 3

1.3.4 Midyear Entrance . . . . . . . . . . . . . . . . . . . . . . 4

1.4 Tuition and Financial Aid . . . . . . . . . . . . . . . . . . . . . . 4

1.4.1 Tuition and Fees . . . . . . . . . . . . . . . . . . . . . . . 4

1.4.2 Financial Aid . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.4.3 Procedure for Determining Standing . . . . . . . . . . . . 5

1.5 Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.5.1 Library . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.5.2 Computing Facilities . . . . . . . . . . . . . . . . . . . . . 6

1.5.3 Data Resources . . . . . . . . . . . . . . . . . . . . . . . . 6

1.6 Daily Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.6.1 Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.6.2 Health Insurance . . . . . . . . . . . . . . . . . . . . . . . 7

1.6.3 Visa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2 The Master of Science in Economics 9

2.1 Outline of Requirements . . . . . . . . . . . . . . . . . . . . . . . 9

2.2 Grading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.3 Courses and Typical Program . . . . . . . . . . . . . . . . . . . . 9

2.4 Field Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2.5 The Transition from Coursework to Research . . . . . . . . . . . 10

2.6 Master Thesis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.7 Plagiarism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.8 Teaching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.9 Courses and Workshops at other Institutions . . . . . . . . . . . 11

2.10 Placement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

i

ii CONTENTS

3 Courses in Economics 133.1 Core Courses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.2 Courses of the Theory Track . . . . . . . . . . . . . . . . . . . . 143.3 Courses of the Policy Track . . . . . . . . . . . . . . . . . . . . . 143.4 Integration of the Theory and Policy Track . . . . . . . . . . . . 163.5 Teaching: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3.5.1 Core Sequence: 9/2014 – 7/2015 . . . . . . . . . . . . . . 173.5.2 Electives (offered by local faculty): 9/2014 – 7/2015 . . . 173.5.3 Visiting Professors: 9/2014 – 7/2015 . . . . . . . . . . . . 18

3.6 Workshops and Seminars . . . . . . . . . . . . . . . . . . . . . . 19

4 Faculty and Staff 2014–2015 214.1 Permanent Faculty . . . . . . . . . . . . . . . . . . . . . . . . . . 214.2 Associated Faculty . . . . . . . . . . . . . . . . . . . . . . . . . . 224.3 Visiting Faculty . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234.4 Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

5 Academic Calendar 25

Chapter 1

The Program

1.1 History of the IHS Economics Program

The Institute for Advanced Studies, Vienna, is one of Austria’s premiere researchcenters in the social sciences and was founded in 1963 by Paul Lazarsfeld andOskar Morgenstern with the goal of reinvigorating scientific inquiry in this fieldof endeavor. Crucial initial funding for the Institute was provided by, amongothers, the Ford Foundation. From the beginning, a key part of the Institute’smission has been the advanced education and training of economists at an in-ternationally competitive level. In this regard, the Institute has an outstandingrecord of success, with many of the graduates of our program in economicsattaining professorships at leading universities throughout the world. Indeed,approximately 100 professors of economics have passed through the Institute’sProgram since it was instituted.

The Program’s challenging content is enhanced by the low ratio of studentsto in-house faculty, and is defined by its outstanding visiting faculty. The de-partment’s faculty for the academic year is listed in the Faculty section of thishandbook. The Department of Economics and Finance is very well known forits strength in economic theory and applied economics. The two Fellows of theEconometric Society who work in Austria are both members of our Department.

1.2 Degrees Offered

1.2.1 Master, Economics

The Master in Economics was started in 2008 in cooperation with the ViennaUniversity of Technology and evolved from the Program in Economics offeredat IHS from 1964 until 2007. This MSc. program requires the full-time con-centration of students for the entire two year period. Graduates are equippedto succeed in an ever more competitive academic environment. The curriculumemphasizes analytic competence, economic intuition and solid empirical work.Students are expected to perform on a level with their peers at top-ranked de-partments (e.g. Princeton, Stanford, LSE, and UPF). The aim of the programis to prepare students for admission to a top PhD program.

These goals are achieved by attending a carefully designed sequence of courses

1

2 CHAPTER 1. THE PROGRAM

and through an overall preparation in subject matter and techniques that goesbeyond course work. Work in teams and the acquisition of advanced mathe-matical skills are the key to a successful completion of the program. Most corecourses will be completed by the end of the fourth term, the fifth and sixth termare mostly dedicated to field courses and to independent research that leads tothe master’s thesis which is prepared under the direction of a faculty member.

The faculty is always available for consultation; students are strongly en-couraged to discuss their ideas and concerns with their teachers and advisors.The department is flexible to accommodate particular circumstances of individ-ual students. Academic achievements are regularly reviewed by the Director ofGraduate Studies and the entire Department. Failure to maintain good standingmay necessitate withdrawal from the Program.

1.2.2 PhD, Economics

Starting in September 2010 our Department cooperates with the University ofVienna in the Vienna Graduate School of Economics which offers a PhD degreein Economics. The program starts at the dissertation writing stage, i.e. aprevious Master education is necessary. Further information is available at:www.vgse.at.

1.2.3 PhD, Finance

The Department cooperates in the Vienna Graduate School of Finance andoffers a PhD program in Finance. Further information is available at: www.

vgsf.ac.at.

1.3 Admission to the Master in Economics

To be admitted into the graduate program, a student must hold a bachelor’sdegree or its equivalent from an accredited university. It is not essential that theprevious education be in economics. Aside from economics, previous graduatestudents have had a variety of quantitative backgrounds from computer scienceto mathematics.

1.3.1 Prior Preparation

The ideal applicant has a strong analytical mind and good mathematical skillsas well as sound knowledge of economics. Students with limited prior knowledgeof economics are strongly encouraged to catch up on undergraduate economictheory at the upper-division level. Furthermore, a strong working knowledgeof calculus is essential. The department offers an optional intensive course,Introductory Mathematics, which covers calculus, analysis, and optimization.

1.3. ADMISSION TO THE MASTER IN ECONOMICS 3

1.3.2 Application Procedure and Requirements

The department accumulates a file on each applicant for admission. A completefile contains the following:

• A concise motivation letter;

• A current CV;

• Certified Transcripts of all previous university or college work;

• Diploma of previously completed degrees (if available);

• A sample of written work (ideally bachelor’s thesis);

• Three letters of recommendation from people familiar with your academicachievements should be sent to us directly by the recommenders or beprovided in sealed envelopes; E-mail recommendations are only acceptedif sent from official university accounts, not gmail, yahoo, or similar.

• A photocopy of your passport’s main page.

The Department does not require GRE or TOEFL results. However, we stronglyencourage our applicants to provide this extra information. Official score reportsmust be received by the application deadline. For these tests our designatedinstitution code (DI Code) is 8929. Please use it to have your scores reportedto us. Information on the GRE and TOEFL may be obtained online at http:

//www.ets.org.The applicant’s file must be complete by the deadline in order to be consid-

ered for admission and financial aid. It is the responsibility of the applicant toensure that all application and supporting materials arrive by the deadline. Ifan application is incomplete by the final deadline, it will not be considered foradmission.

Decisions regarding admission are the responsibility of the DepartmentalGraduate Admissions Committee, which bases its judgment on the previousacademic record, the letters of recommendation, the candidate’s statement ofobjectives, the GRE and TOEFL examinations (if available). Shortlisted can-didates will be interviewed by the Admissions Committee. Local candidatesare invited to the Institute, otherwise interviews will be conducted over thetelephone /internet. The purpose of the interview is to assess the applicants’knowledge of basic concepts in mathematics, economics and econometrics, aswell as their proficiency in English.

1.3.3 Timeline for Admission

• Application Deadline: March 1. All application materials are due by thisdate. International students are encouraged to apply early.

• Shortlisted candidates will be contacted to arrange admission interviewsby March 4. These interviews will be conducted in the week of March 11.

• Notices of acceptance are sent out by March 18.

• Candidates have until March 31 to notify the Department of their deci-sions.

4 CHAPTER 1. THE PROGRAM

Table 1.1: Recent Admission StatisticsYear Applications Interviews Admitted Started Graduated2014 69 24 16 12 –2013 72 31 17 11 ≤ 82012 270 29 16 12 112011 63 24 15 13 82010 59 27 10 7 42009 58 26 12 9 72008 71 24 9 8 4

1.3.4 Midyear Entrance

The first year course sequences start only in the fall and are cumulative. Eachcourse is a prerequisite for the subsequent one. Therefore, a student who triedto start the program later than September would be at a serious disadvantagewith respect to his colleagues. For this reason, students are not allowed to startthe program in mid-year.

1.4 Tuition and Financial Aid

1.4.1 Tuition and Fees

The Institute for Advanced Studies does not charge tuition or fees for partici-pation in the MSc. Program in Economics.

1.4.2 Financial Aid

Every year the Austrian National Bank and the Austrian Federal Ministry ofScience and Research provide a limited number of students in the Programwith fellowships to help cover living costs and other expenses while studying atthe Institute. Currently, the fellowship amount is approximately e20,000 perstudent over the two-year program (e850 per month), and most of the studentswho are admitted to the program receive the fellowship. In addition to theAustrian National Bank, there is a group of business leaders, enterprises andgovernmental sponsors who occasionally decide to fund fellowships for especiallyqualified applicants. Fellowships are initially granted for the first year and willbe renewed if the student is in good standing (see 1.4.3)

Eligibility

No extra procedures are required to apply for the fellowships. Every applicantfor the MSc. Program is automatically considered for a fellowship. Fellowshipsthat have been granted to students will start to be paid out in September, ifthe student has completed an undergraduate degree and arrived in Vienna. IHSreserves the right to withdraw fellowship promises if students arrive after thestart of the core courses (typically late September, see academic calendar).

1.4. TUITION AND FINANCIAL AID 5

First Year Excellence Award

For the past several years, the Austrian Lotteries have sponsored a First YearExcellence Award, which is awarded to students who demonstrate exceptionalperformance in their coursework over the first year. This award is recorded onthe student’s transcript, but is not necessarily given each year — awarding it isat the discretion of the faculty and the availability of funding from the AustrianLotteries.

Teaching Assistantships

Second year students in good standing are expected to hold practice sessions infirst year core courses as part of their fellowships.

Summer Jobs

Research assistantships may be available during the summer. These positionsare scarce, no student is guaranteed summer employment.

Workload and Outside Jobs

In each academic year students are earning approximately 60 ECTS whichroughly corresponds to an average workweek of sixty hours! In order to avoidany distractions, fellowship holders are generally prohibited from holding out-side employment.

1.4.3 Procedure for Determining Standing

At the end of the first year the Graduate Committee classifies continuing stu-dents into four broad groups. Financial aid for the upcoming year is based onthis group assignment.

• Group A: Students who have a GPA1 of at least 90.

• Group B: Students who have a GPA of at least 80.

• Group C: Students who have a GPA of at least 70.

• Group D: Any student whose GPA is less than 70.

Members of Groups A and B are in good standing. Members of Groups C and Dare not in good standing. The department guarantees financial aid to studentsin good standing. Students in Group C will not normally receive financial aid.Students in Group D are usually not encouraged to continue into the secondyear and will under no circumstances receive financial aid. Irrespective of theirstanding, students who fail (< 50%) a course twice will no longer be eligible forfinancial support and have to leave the program.

1 The Grade Point Average (GPA) is computed as a weighted average of the percentagecourse grades. Weights are the ECTS credits of each course.

6 CHAPTER 1. THE PROGRAM

1.5 Facilities

1.5.1 Library

The IHS library (http://www.ihs.ac.at/library) is a relatively young, butwell-regarded library in the social sciences. It offers online access to the mostrenowned economics journals and databases and cooperates with various databaseproviders such as RePEc, wiso and SSOAR. It is also a member of the Austrianacademic consortium (KEMO). The library of Vienna University of Technology(www.ub.tuwien.ac.at/eng) holds more than 1,000,000 items and referencematerial, 2,800 scientific journals and periodicals, and a wide range of CD-ROMs and on-line databases. The library focuses on natural and technicalsciences but also covers related subjects. Most of the books and journals aredirectly available on open-access shelving, arranged by subject. The collectionis housed in the Main Library (Wiedner Hauptstraße/Karlsplatz), in more than90 subject libraries at the University Departments, and in 2 special libraries:the Chemistry library, and the Mathematics and Physics library.

1.5.2 Computing Facilities

The IT department provides state of the art computer equipment to economicsgraduate students. The mobile computer lab includes 9 PCs and in additionall students are provided with a PC at their desk. All of these machines haveaccess to the latest versions of key mathematics and statics software includingE-Views, Gauss, Matlab, SPSS, Stata, as well as Microsoft Office and Latexfor scientific typesetting. Our computing infrastructure also includes a powerfularray of UNIX servers, high speed printers and a secure data backup system.These resources are easily accessible from outside the Institute.

Five full time staff members of the IT department support these systemsand are available to assist students and faculty.

1.5.3 Data Resources

As one of Austria’s leading economic research institutes, IHS has access to avery large data collection that contains major census, financial and survey datasets for Austria, several European countries, the U.S., and the OECD. Ourstudents regularly make use of these data for their empirical research projectsand master theses.

1.6 Daily Life

1.6.1 Housing

The Institute does not have its own housing facilities but cooperates closelywith nearby student residences. Students receive extensive assistance in findingaccommodation but should let the Department know their requirements as soonas they have decided to enter the program. We cooperate closely with the conve-niently located student dorm Panorama (http://www.wihast.at/en/home/).

1.6. DAILY LIFE 7

1.6.2 Health Insurance

Students are responsible for their own health insurance. The Institute assistsstudents in obtaining insurance from a Viennese provider. Students shouldcontact the Program Manager before their arrival in Vienna to clarify the exactproceedings.

1.6.3 Visa

Students are responsible for obtaining a residence permit in Austria. Immedi-ately after acceptance, our Program Manager will inform students about visarequirements and provide assistance throughout the process.

8 CHAPTER 1. THE PROGRAM

Chapter 2

The Master of Science inEconomics

2.1 Outline of Requirements

The departmental requirements for the Master in Economics are

• successful completion of the course sequences in foundations, economet-rics, macroeconomics, and microeconomics;

• completion of the field requirements;

• completion and successful defense of the master’s thesis.

There is no foreign language requirement. The language of the program isEnglish.

2.2 Grading

IHS stores your grades as percentages but will report letter grades on your IHStranscript. Percentage grades are converted to US-style letter grades accordingto (M.Per. stands for Minimum Percentage):

Grade A+ A A- B+ B B- C+ C C- D+ D FM.Per. 93 87 83 77 73 69 64 60 55 50 0

The official transcripts by the Vienna University Technology will be based onAustrian law and report grades based on the following scheme:

Sehr NichtGrade Gut (1) Gut (2) Befriedigend (3) Genugend (4) Genugend (5)M. Per. 90 80 70 50 less than 50%

2.3 Courses and Typical Program

At the start of the first year the department offers a mathematics review andpreparation course. The material covered in this course is useful in all of the first

9

10 CHAPTER 2. THE MASTER OF SCIENCE IN ECONOMICS

year core sequences. Students are not required to attend the course, althougheveryone is encouraged to participate and typically everybody does. An ap-propriate textbook is C.P. Simon and L.Blume, “Mathematics for Economists”,chapters 1–6, 8–19.

The first year consists entirely of core courses in mathematics, statistics,econometrics, macroeconomics and microeconomics. A full list of these coursestogether with a brief summary of their contents is provided in chapter 3. In thesecond year students finish the core sequence and take their elective courses. Theresearch groups prepare second year students for the requirements of academicwork by reviewing and discussing relevant current literature.

2.4 Field Requirements

The department requires master students to take four elective courses in thesecond year. All four courses must be taken for a letter grade and a cumulativeGPA of 85 or better is highly desirable for these courses. In addition, studentsare welcome to enroll in further elective courses either for letter grade or on apass/fail basis to benefit from the wide variety of excellent field courses taughtby world class visiting professors each year. Furthermore, it is possible to attendelectives at our partners, the Vienna Graduate School of Economics (VGSE) orVienna Graduate School of Finance (VGSF) subject to their prior approval. Allregistration for courses with either VGSE or VGSF need to be done via the IHSProgram Manager.

2.5 The Transition from Coursework to Research

It is impossible to overemphasize the importance of the successful transitionfrom coursework to research. Our master program has the key feature of assist-ing this transition throughout the second year of the program. Electives helpstudents to narrow down their areas for thesis research and to start discussionswith professors about potential ideas.

An ideal opportunity to begin on thesis-related work after the first year is theoptional summer research project, where students explore an interesting topicunder supervision of a faculty member. This summer research is only availableto students in good standing and requires approval of the Director of GraduateStudies.

Throughout terms five and six students are required to attend one researchgroup — either in macroeconomics, microeconomics, or econometrics. Each re-search group prepares students to independently read, understand, present, anddiscuss influential current research. All research groups are held in cooperationwith other Viennese universities and graduate students from all participatinginstitutions attend. As such the research groups provide a unique forum for theinterchange of ideas, both among peers and with faculty members, at a veryearly stage in the research process.

Finally, in spring of the second year students enroll in the mandatory Econo-metrics IV course which requires that students complete an empirical project.Members of the Institute’s Applied Research Group actively participate in thiscourse and contribute their real world consulting experience.

2.6. MASTER THESIS 11

2.6 Master Thesis

Work on the thesis commences in January of the second year, when studentsmeet with in-house faculty to select an advisor. By February 1st the advisor andtopic have to be communicated to the Director of Graduate Studies. Throughoutthe academic year students work closely with the thesis advisor to complete thethesis by the beginning of June. The final step is a presentation of the thesisto a faculty committee in the last week of June. This presentation is opento the public and not only gives students an opportunity to demonstrate theculmination of two-years of hard work in the Program, but also allows them todiscuss their research with the Viennese scientific community.

2.7 Plagiarism

The use of somebody else’s work, be it text, computations, or computer code,without proper credit is considered as plagiarism. The course in which creditwas not properly attributed will be considered as failed. Plagiarism can lead toexpulsion from the program.

2.8 Teaching

Teaching is not a required part of the Master program but is regarded by theDepartment as an important contribution to the graduate experience for stu-dents interested in academic careers. As indicated above, the best second yearstudents are expected to assist in the teaching of first year graduate courses upto a maximum extent of one course per term.

2.9 Courses and Workshops at other Institutions

Attendance of other courses, workshops, summer schools, etc. requires approvalof the Director of Graduate Studies. Travel expenses and workshop fees cannotbe covered by IHS.

2.10 Placement

Our Institute actively and highly successfully assists its graduates in findingsuitable placements. Activities are coordinated by the Director of GraduateStudies but the entire faculty is actively involved by making good use of theextensive research network available.

Graduates of our program typically continue their graduate education attop PhD programs or take on jobs in important think tanks, policy makinginstitutions, or the financial sector.

The student cohort (four students) finishing in July 2012 had offers to con-tinue their PhD studies with full funding at New York University, NorthwesternUniversity Economics, Northwestern MEDs, University of Washington, Univer-sitat Pompeu Fabra, University of Stockholm, Stockholm School of Economics,Vienna Graduate School of Economics, among others. Seven of eight students

12 CHAPTER 2. THE MASTER OF SCIENCE IN ECONOMICS

finishing in July 2013 went to PhD programs. In particular, they went to theEuropean University Institute, New York University, VGSE, VGSF and YaleUniversity. One student went to industry. This year ten of eleven studentscontinue with a PhD at Pennsylvania Sate University, WU Vienna, Univer-sity of Calgary, European University Institute, University of Glasgow, VGSE,Princeton University, University of Wisconsin-Madison, New York Universityand Northwestern University.

In the last five years graduates had the option to continue their educationat the following highly regarded PhD programs: Calgary, Columbia, Cornell,Chicago, EUI Florence, Glasgow, LSE, Northwestern: Economics, Northwest-ern: MEDs, NYU, Princeton, Stockholm School of Economics, Tilburg, Tinber-gen Institute, Toulouse, Universitat Pompeu Fabra, University College, Lon-don, University of California, Los Angeles, University of California, San Diego,University of Rochester, University of Zurich, Vienna Graduate School of Eco-nomics, Vienna Graduate School of Finance, Wisconsin, and Yale University.In the last five years some of our graduates have also been hired as Economistsby the Austrian Central Bank, ministries and several local universities.

Some of our graduates have been or are now professors at Bogazici, Kellogg,Northwestern, LSE, Munich, Princeton, Yale, Zurich, or work in top positions atECB, EU, IMF, OECD, OPEC, the World Bank, and central banks around theworld. The current governor of the Austrian National Bank, Professor EwaldNowotny, was one of the first students in our program from 1967 – 1969.

Chapter 3

Courses in Economics

This section provides a complete listing of all core courses currently being of-fered. Contents are updated regularly to reflect scientific progress and studentneeds.

In the last study year 2013/14 the number of courses has been augmentedby policy track courses. Thus we distinguish between a theory track and apolicy track in the following. Students have to decide between one of theseopportunities at the end of the first term. A certain flexibility is still available,such that students in the theory track are permitted to attend lectures in thepolicy track and vice versa. This should be the case if the prior knowledge issufficient (e.g. students not attending the Math 2 course or without sufficientprior knowledge in topology are not permitted to attend Micro 2 or GameTheory). If you want to attend a course in the other track this has to beapproved by the Director of Graduate Studies. The following list of lecturesdistinguishes between core lectures, which all students have to attend, lecturesof the theory track, lectures of the policy track and electives.

3.1 Core Courses

Mathematics I, 6 ECTSSets, functions and correspondences; Algebraic structures; Construction of realnumbers; Polynomials; Vector spaces and subspaces; linear independence; Basisand dimensions; Matrices; Determinants; Eigenvalues and Eigenvectors; Bilinearand Quadratic Forms; Orthogonal Projection.

Statistics, 6 ECTSProbability theory; Univariate random variables; Multivariate random variables;Distribution and density functions; Expectations; Convergence Concepts; Esti-mation Theory; Maximum Likelihood; Statistical Testing.

Computational Methods, 3 ECTSBasics of computer programming, numerical differentiation, approximation andinterpolation, zero finding and numerical optimization, numerical integration,Monte Carlo methods.

Macroeconomics I, 3 ECTSInvestment, consumption, asset pricing, labor supply, optimal taxation, financialfrictions, overlapping generations economy.

13

14 CHAPTER 3. COURSES IN ECONOMICS

Macroeconomics II, 6 ECTSexogenous growth, endogenous growth, empirical findings.

Macroeconomics III, 6 ECTSNeoclassical growth models under uncertainty; Dynamic New Keynesian models;optimal fiscal and monetary policy; search and labor market frictions.

Dynamic Optimization I, 3 ECTSOptimization; sequential problems and recursive problems; Bellman equations;contraction mappings; solution methods.

Dynamic Optimization II, 3 ECTSMarkov processes; principle of optimality; stochastic Euler equations; applica-tions to partial equilibrium models; search models.

Microeconomics I, 6 ECTSDecision theory; consumer theory; producer theory; partial equilibrium theory.

Econometrics I, 6 ECTSAlgebra of least squares; classical and generalized linear regression; likelihoodfunction, distributions and testing principles; asymptotic analysis; estimationand testing in generalized regression models.

Econometrics IV, 3 ECTSEmpirical project: Application of econometric methods in microeconometrics,macroeconometrics, or time-series econometrics.

3.2 Courses of the Theory Track

Mathematics II, 6 ECTSTopology and Metric Spaces; Compactness, Connectedness, and Convexity; Dif-ferential and Integral calculus.

Microeconomics II, 6 ECTSConsumer theory; producer theory; general equilibrium theory.

Game Theory , 6 ECTSRepresentation theory; solution theory; applications.

Econometrics II, 6 ECTSStationary stochastic processes; integrated univariate processes; stationary VARprocesses; cointegration analysis.

Econometrics III, 3 ECTSInstrumental variable estimation; generalized method of moments; panel dataeconometrics.

3.3 Courses of the Policy Track

Applied Game Theory, 6 ECTSRepresentation theory; solution theory; applications. Nash equilibrium, Oligopoly,Subgame Perfect Equilibrium, Bargaining, and the Bayesian Equilibrium.

Applied Probability, 6 ECTSRandom Variables, probability, independence, conditional expectations, law oflarge number, central limit theorem, Martingales, Markov Chains.

Forecasting, 3 ECTSTo be offered in Fall 2014.

3.3. COURSES OF THE POLICY TRACK 15

Applied Microeconometrics, 3 ECTSExperiments, Estimators based on conditional independence, difference-in-differenceestimation, instrumental variables, regression discontinuity,

Term 5

Term 3

Applied Micro-econometrics

MCMath Camp

Math I Statistics Micro I

AppliedProbability

Math II

EMX IDyn.Opt. I

Macro II

Macro I

Elective

EMX II

AppliedTheory

Micro II

AppliedGame Theory

Game Theory

Fore-casting

EMX III

Dyn.Opt. II

Macro III

ComputationalMethods

EMX IV

Elective

Elective

Elective

Research GroupHealth

Pub. Fin.Innovation

EMXMicroMacro

Research GroupHealth

Pub. Fin.Innovation

EMXMicroMacro

Master Thesis

Master Thesis

or

oror

or

or

SeptemberTerm 1

Term 1

SeptemberTerm 2

Term 2

Term 4

Term 6

MSc Economics

Core:Policy Track

Core:Theory Track

Core:Both Tracks

Electives:Pick 4

Research Group:Pick 1

16 CHAPTER 3. COURSES IN ECONOMICS

3.4 Integration of the Theory and Policy Track

Course Theory Track Policy TrackSeptember Year 1

Math CampTerm 1

Math I required requiredStatistics required requiredMicro I required required

Term 2Math II requiredProbability requiredEconometrics I required requiredMacro I required requiredDynamic Optimization I required required

Term 3Econometrics II requiredApplied Microeconometrics requiredMicroeconomics II requiredApplied Theory required(Labor and Public Finance)Macroeconomics II required requiredComputational Methods required required

September Year 2Applied Game Theory required

Term 4Forecasting requiredEconometrics III requiredGame Theory requiredDynamic Optimization II required requiredMacroeconomics III required required

Term 5Empirical Project required requiredVisiting Professors pick 4 pick 4

Research GroupsMicro Research Group pick 1 pick 1Macro Research Group pick 1 pick 1Econometrics Research Group pick 1 pick 1Master Thesis required required

3.5. TEACHING: 17

3.5 Teaching:

3.5.1 Core Sequence: 9/2014 – 7/2015

Course Instructor TAMath Camp Gyula MagyarkutiMath I Christian Steineder LeopoldStatistics Helmut Strasser PeterMicro I Martin Meier AmirMath II Christian Steineder FabianApplied Probability Anton van Boxtel, N.N.

Leopold SoegnerEconometrics I Justinas Pelenis LeopoldMacro I Christian Haefke ClaudiaDynamic Optimization I Paul Pichler ClaudiaEconometrics II Manfred Deistler FabianApplied Microeconometrics Derya Uysal BenceMacroeconomics II Tamas Papp BenceMicroeconomics II Egbert Dierker GyorgyApplied Theory N.N., Uwe Sunde, Aurelie

Peter EggerComputational Methods Tamas Papp GyorgyGame Theory Klaus Ritzberger Roman, NickApplied Game Theory Jamsheed Shorish —Dynamic Optimization II Michael Reiter —Macroeconomics III Michael Reiter —Econometrics III Leopold Soegner —Forecasting Robert Kunst —Empirical Project Simon Loretz —

Micro Research Group Klaus RitzbergerMacro Research Group Tamas PappEconometrics Research Group Derya Uysal, Justinas Pelenis,

Leopold Soegner

3.5.2 Electives (offered by local faculty): 9/2014 – 7/2015

Course InstructorAdvanced Game Theory Klaus RitzbergerContract Theory Anton van BoxtelHealth Economics Thomas CzypionkaBusiness Cycle Analysis Klaus Weyerstrass, N.N.Financial Econometrics Ines Fortin, Jarka Hlouskova,

Justinas Pelenis, Leopold Soegner

18 CHAPTER 3. COURSES IN ECONOMICS

3.5.3 Visiting Professors: 9/2014 – 7/2015

MacroMelvyn Coles 5/18-5/29 2015 “Macro t.b.a”Essex Host: TPStefania Albanesi 4/7-4/17 2015 “Macro t.b.a”FED NY Host: MRMicroLarry Blume 11/24–12/12/2014 “Applied GE ”Cornell U. Host: KRNicolas Vieille 2/24/2015–3/7/2015 “Advanced Microeconomics”HEC Host: MMJohannes Horner 3/6/2015–3/23/2015 “Advanced Game Theory”Yale Host: KRBill Zame End of Mai 2015 “tba”UCLA Host: MMFinanceZsuzsanna Fluck May 2015 “tba”Michigan State Host: LSEconometricsStefan Hoderlein September 2014 “Microeconometrics”Boston College Host: DU

3.6. WORKSHOPS AND SEMINARS 19

3.6 Workshops and Seminars

Finally, first year students are strongly encouraged to attend one or more ofthe various research seminars available at the Institute. Currently, the Instituteoffers the following throughout the academic year: The Econometrics ResearchSeminar, The Finance Research Seminar, The Joint Vienna MacroeconomicsSeminar and The Vienna Joint Economics Seminar

For second year students regular attendance of the research group in the areaof their master thesis and two seminar series is mandatory in terms 4 to 6.

In the next academic year the 11th Annual Vienna Macroeconomics Work-shop (October 17-18, 2014) and the 2nd Vienna Workshop on High DimensionalTime Series and Macroeconomics and Finance (May 21-22, 2015) will take placeat IHS.

20 CHAPTER 3. COURSES IN ECONOMICS

Chapter 4

Faculty and Staff 2014–2015

4.1 Permanent Faculty

Martin MeierGame Theory.

Tamas PappMacroeconomics, Bayesian econometrics, numerical methods.

Justinas PelenisBayesian econometrics.

Michael ReiterHead of DepartmentComputational economics, macroeconomics, public finance.

Klaus RitzbergerGame theory, microeconomics, financial economics.

Leopold SognerDirector of Graduate StudiesFinancial econometrics, Bayesian econometrics.

S. Derya UysalMicroeconometrics, Labor Economics.

Anton van BoxtelBanking, Corporate Finance.

N.N.Macro.

21

22 CHAPTER 4. FACULTY AND STAFF 2014–2015

4.2 Associated Faculty

Larry Blume (Cornell University)Economics.

Manfred Deistler (TU Vienna, emeritus)Econometrics, time series, systems theory.

Egbert Dierker (University of Vienna, emeritus)General equilibrium theory, oligopoly theory, welfare economics.

Zsuzsanna Fluck (Michigan State)Banking, Corporate Finance.

Christian Haefke (New York University Abu Dhabi)Product market regulation, unemployment, labor market participation.

Max Kasy (Harvard University)Econometrics.

Robert Kunst (University of Vienna)Time-series econometrics, seasonality, applied macroeconomics.

Gabe Lee (University of Regensburg)Macroeconomics, Real estate economics.

Gyula Magyarkuti (Corvinus University Budapest)Topology, mathematical economics.

Benedikt Potscher (University of Vienna)Model Selection, Nonparametric methods.

Jamsheed Shorish (Uberlink Corporation)Numerical Methods.

Christian Steineder (TU Vienna)Differential Geometry.

Alexander Stomper (Humboldt University)Corporate Finance, Market Microstructure.

Helmut Strasser (WU Vienna)Mathematical Statistics.

Martin Wagner (TU Dortmund)Econometrics, Quantitative Economics, Environmental Economics.

Rudolf Winter-Ebmer (University of Linz)Labor economics, applied microeconometrics.

4.3. VISITING FACULTY 23

4.3 Visiting Faculty

Stefania Albanesivisiting from FED NY.

Melvyn Colesvisiting from University of Essex.

Stefan Hoderleinvisiting from Boston College.

Johannes Hornervisiting from Yale.

Nicolas Vieillevisiting from HEC Paris.

Bill Zamevisiting from University of California, Los Angeles.

4.4 Staff

economics@ihs.ac.at Helga Hanl-Lohn (Program Assistant),Elisabeth Potzmann (Program Manager)

hotline@ihs.ac.at Harald Hutter (IT), Karl Zolles (IT).

24 CHAPTER 4. FACULTY AND STAFF 2014–2015

Chapter 5

Academic Calendar

Academic Calendar: 2014– 2015

SeptemberCourses 09/01/2014 – 09/19/2014Exams 09/22/2014 – 09/23/2014Fall TermCourses 09/24/2014 – 12/12/2014Exams 12/14/2014 – 12/19/2014Winter TermCourses 01/12/2015 – 04/10/2015Ski Break 02/02/2014 – 02/08/2014Exams 04/13/2015 – 04/17/2015Spring TermCourses 04/20/2015 – 07/10/2015Exams 07/17/2015 – 07/24/2015

Academic Calendar: 2015– 2016

SeptemberCourses 08/31/2015 – 09/18/2015Exams 09/21/2015 – 09/22/2015Fall TermCourses 09/23/2015 – 12/11/2015Exams 12/14/2015 – 12/18/2015Winter TermCourses 01/07/2016 – 03/31/2016Ski Break 02/01/2016 – 02/07/2016Exams 04/02/2016 – 04/09/2016Spring TermCourses 04/10/2016 – 07/08/2016Exams 07/18/2016 – 07/22/2016

25

26 CHAPTER 5. ACADEMIC CALENDAR

Important Addresses:

Web Address for Online Applications

WWW: http://economics.ihs.ac.at/application

Mailing Address for Inquiries concerning Appli-cations

Email: admissions.economics@ihs.ac.at

Mailing Address for Supporting Material

Institute for Advanced StudiesDepartment of Economics and FinanceGraduate AdmissionsStumpergasse 561060 ViennaAustria

Only online submission of materials via our application tool will beaccepted(except for GRE and letters of recommendation).

Last updated: June 2013, CH; July 2014, LS.