Economics relies heavily on principles of calculus and statistics. Math and statistics coursework teaches budding economists how to forecast data, measure growth, calculate economic profit, and run regressions. Some forecasting classes rooted in statistics are also known as econometrics. Economists may have software to assist with this task, but they must be taught principles of both fields in order to understand how to use such programs. The math and statistics requirements vary between universities, but expect extensive coursework in these fields. For example, Harvard University's Economics PhD program requires four classes of math and statistics in the first year.
Students usually take some courses in labor economics. This coursework explains the basic relationship between business firms and workers. These classes present the labor market from a macrocosmic perspective by analyzing unemployment trends and how these figures affect the overall economy. For example, one might examine how economic forces like a housing crisis affect the labor market.
Economic theory courses teach economic history and the perspectives of famous economists. For instance, most students recall in their mandatory economics coursework Adam Smith's "laissez-faire" theory of how the invisible hand guides the market. Economic thought coursework delves into the theories of other economists like Fredrick Von Hayek, John Maynard Keynes, Milton Friedman, Karl Marx, and others. These theories provide students the framework to make important decisions for society.
The import policies of China, a fall in the value of the euro, or an oil shortage in Nigeria all affect the US economy. International economics coursework explores these connections by assessing monetary policies, trade agreements, and the economic policies of other countries. International economics also studies the impact of sanctions, trade embargoes, and subsidies.
Economics public policy classes discuss how the government distributes its scarce resources to the various groups in society. Brown University's syllabus for a graduate course in "Economics and Public Policy" includes subjects like Medicaid, health care legislation, unemployment benefits for laid off workers, and taxes.
PhD students implement what they learn in the classroom in their graduate research. Students must write a dissertation based on models they create. Students usually decide on a research topic by the end of their second year. Examples of a dissertation topic include pricing discrimination in the airline industry, oil price discrepancies in Europe and the US, or the effects of Cadillac health plans on the insurance industry. To obtain a PhD, students must present their dissertation and defend it before a faculty dissertation committee.