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Table of Contents

DES ANNUAL MEET AND GREET, Fri 9/27 5-7pm Join us for light appetizers with the Economics professors, career development, co-op, and study abroad staff members. Get to know the DES board members and learn about what Drexel has to offer you over your coming years!

FALL 2013 GENERAL BODY MEETING, Thurs 10/3 8pm Join the DES board to hear about fall's upcoming events, learn more about the first annual research competition, tutoring and mentoring programs and find out how you can be involved with the DES for the 2013-2014 academic year.

THE POLITICAL ECONOMY OF NATURAL DISASTERS, Tues 10/22 6-7:30pm Dr. Michael Lahr from the Edward J. Bloustein School of Planning and Public Policy (Rutgers Uni-versity) and Dr. Scott Knowles (Drexel University) will discuss the political climate and economic implications of natural disasters.

SOCIAL ENTREPRENEURSHIP IN THE PHILADELPHIA ECONOMY, TBD A social entrepreneur identifies and solves social problems on a large scale. Just as business entrepre-neurs create and transform whole industries, social entrepreneurs act as the change agents for society, seizing opportunities others miss in order to improve systems, invent and disseminate new approaches and advance sustainable solutions that create social value. Thanks to a $1 million award, the Philadel-phia Social Enterprise Partnership, an incubator for socially-minded startups, is going to become a reality. This panel will discuss how social entrepreneurship can innovate ways to solve local problems in the Philadelphia region.

RESEARCH 101: DESIGN AND METHODS, 3 Sessions 11/5 4-5p; Maria Olivero, PhD and Matthew Weinberg, PhD 11/6 1-2p; Maria Olivero, PhD 11/7 6-7p; Marco Airaudo, PhD and Anne Duchene, PhD Interested in learning more about conducting rigorous economic research? Want to know more about the research our faculty are working on? Join us for a one hour seminar on the basics of economics research, both theoretical and empirical for microeconomic and macroeconomic research. *Students planning to compete in the DES Research Competition are strongly encouraged to attend at least one of these sessions.

FOOD ECONOMICS, Fri 11/15 10:00a-3:00p

DES Upcoming Events DES Upcoming Events P.1

Alumni Profile P.2

Faculty & Student Spot-lights

P.3

DES 2013 Initiatives: Tutoring & Mentoring Programs

P.4

Economic News

Regional Economy

National Economy

International Economy

Special Topic: Emerging Economies

P.4

P.5

P.5

P.6

DES Past Events P.6

Website:

www.drexeleconomicssociety.com

Facebook: www.facebook.com/DrexelEconomicsSociety

Email:

drexeleconomics@gmail.com

CONTACT US

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Alumni Profile Gregory in den Berken

Greg in den Berken graduated with honors from Drexel University in 2012 with a B.S. in Eco-

nomics. While at Drexel, Greg was a member of the Drexel Economics Society and president

of the Pre-Law Society. He was inducted into the international economics honor society Omi-

cron Delta Epsilon prior to graduation. Greg is currently a first-year law student at the Uni-

versity of Michigan.

Originally a Business Administration major, Greg switched to Economics during his co-op

with BlackRock, an investment management firm. At BlackRock, Greg worked on projects

related to the company's acquisition of Barclays Global Investors. His second co-op was with

the law firm Morgan, Lewis & Bockius LLP. Greg wrote his senior seminar paper on regula-

tory issues in the economics of the domestic airline industry, and credits his economics cours-

es for steering him toward the legal field.

Anna Petrone

Anna Petrone,economics and math double major and physics minor,landed herself a position

in the Federal Reserve’s two-year research assistant program within its Macroeconomic and

Quantitative Studies section. Petrone was attracted to economics because of its practicality. “I

was drawn to econ for its relevance and because every day,problems arise that constantly

challenge and develop the theory itself,” she says. “As a math major,view economics as a

highly applied area of study,is why I like it so much.”

Petrone said Drexel’s co-op program allowed Petrone to find a job and her classes helped lay

the framework for success during her co-ops. She is proficient at analytical skills and pro-

gramming languages such as SQL, SAS, C++, Python, Mathlab and a few others. Also, she

shows great gratefulness to Dr. Laincz, her ECON 902 professor, who encouraged her to ap-

ply for the Fed’s Board.

Petrone now works in a department that is part of the Economics and Research division of

the Fed’s Board of Governors. In addition, she has started taking some classes at the Univer-

sity of Maryland, and in a year or two she hopes to be accepted to their masters program in

Applied Math.

Nedko Yordanov

Nedko is a class of 2011 alumnus, graduated with B.S. in Economics and B.S. in mathematics.

Throughout his studies at Drexel University LeBow College of Business, he earned numerous

recognitions, including the R. John Chapel scholarship, The Robert Hamman Award for ex-

cellence in microeconomic theory, and the Excellence in Macroeconomic Theory Award.

Moreover, he was among the initiators for establishing a Drexel University chapter of Omi-

cron Delta Epsilon - The International Economics Honor Society, and was one of the first stu-

dents inducted in the society.

Following his graduation from Drexel University, Nedko enrolled in the Ph.D. program at

the University of Arizona. There he has concentrated his efforts on teaching and research in

the fields of Industrial Organization and Economics of Information. His current work focuses

on the dynamics in the mobile applications markets.

Gregory in den Berken

Anna Petrone

Nedko Yordanov

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Faculty and Student Spotlights Faculty Updates

In January of 2014, the Department of Economics will welcome a new

member of the faculty, Dr Andre Kurmann, as an Associate Professor.

Professor Kurmann is currently an economist at the Monetary Studies

section of the Board of Governors of the Federal Reserve System in

Washington, DC. Before joining the Fed, Professor Kurmann was a visit-

ing associate professor at the Wharton School of the University of Penn-

sylvania (from 2008 to 2011) and an Assistant and Associate Professor at

the Université du Québec à Montréal (from 2002 to 2011). Dr Kurmann

holds a BA in Economics from HEC Lausanne (1998), an MA and a PhD

in Economics from the University of Virginia (2000 and 2002). His re-

search focuses on understanding the determination of the term structure

of interest rates and labor and capital market frictions. He has published

extensively in top-tier academic journals including the Journal of Mone-

tary Economics, the Review of Economic Dynamics and the Journal of Eco-

nomic Dynamics and Control, among others.

Prof Teresa Harrison has accepted a one-year appointment beginning

September 1st as Associate Dean for Academic Affairs, overseeing curric-

ulum, learning assessment and the Center for Teaching Excellence.

Dr Yoto Yotov has been granted tenure and promoted to Associate Pro-

fessor starting in September of this year.

Dr Richard Barnett has been promoted to Clinical Professor starting in

September of this year.

School of Economics Updates

To celebrate the inauguration of the School of Economics, we will have two

public lectures by Preston McAfee (Director for Google Strategic Technolo-

gies and previous Chief Economist, VP and Research Fellow for Yahoo! Re-

search www.mcafee.cc ) and Peter Henry (Dean of the Stern School of Busi-

ness of NYU, William Berkley Professor of Economics and Finance and

Richard West Professor of Business www.stern.nyu.edu/faculty/bio/peter-

henry).

The School of Economics will also host a series of academic seminars by dis-

tinguished economists which will be announced in the school website as

soon as the dates are finalized.

Dr. Andre Kurmann

Prof. Teresa Harrison

Dr. Yoto Yotov

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DES 2013 Initiatives: Tutoring and Mentoring Programs Mentoring

HEY FRESHMEN:

Want to get a head start on figuring out your time at Drexel as an econ major? Have questions that you're not sure who can answer? Looking for some advice on classes, time management, student activities, and some Drexel basics? Sign up for an Economics Mentor sponsored by the Drexel Economics Society (DES)!

DES would like to help you navigate your transition to college life and help you succeed in the econ program! By signing up for our free mentorship program, you will have access to an upperclassman who will serve as a mentor and friend during your freshman year.

We really hope you take advantage of this resource. If you're interested in having a mentor, please reply to us at info@drexeleconomicssociety.com

Welcome to the Econ community!

Tutoring

Struggling with your economics courses? DES provides tutoring services for all econ courses. Students in the program can work with a tutor one-on-one or in group settings FOR FREE! Work with students that have excelled in upper level economics and math’s toughest courses.

For more information, visit our website @ drexeleconomicssociety.com or email us at info@drexeleconomicssociety.com!

Regional Economy The Fed's Latest Beige Book: "Philadelphia Business Activity Continues at Moderate Pace" The Federal Reserve Board released its Beige Book of the Third District on September 4, 2013. Findings showed mod-

erate rates of growth has continued for general services, existing home sales, and home construction from the previous

period. The report survey found not only greater confidence in the U.S. economy and in global conditions, but also

caution in their hiring and long-term capital expenditure plan, as well as concerns about a potential fiscal crisis. Below

is a summary of the report of the economic conditions of five sectors within the region of the Third District, including

eastern Pennsylvania, southern New Jersey, and Delaware:

Third District manufacturing reported further increases from the previous Beige Book in addition to growing opti-

mism among manufacturing companies that business conditions would improve. Third District retail reported modest

growth overall since the previous period. Auto dealers reported strong sales growth in this summer (July and the be-

ginning of August). Mall retailers and dealers both remained very optimistic about the Fall. Third District financial

firms continued to report modest increases in total loan volume. The credit quality of their loan portfolios was also

healthier from previous. Philadelphia real estate and construction remained busy with existing projects from spring

sales but experienced a lull in early August, partially due to higher interest rates. Market analysts reported expansion

in commercial space in addition to an increase in commercial interest with branches opening in Philadelphia Area

market. Contacts remained "generally optimistic for slow, steady growth." Third District service-sector firms experi-

enced a slow start in the summer but continued to report a moderate pace of growth in general. Tourists continued to

spend cautiously throughout the district. Price levels continued to increase slightly and there were few wage pressures

according to most firms, including staffing companies.

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National Economy

The aggregate perception or outlook of US economy dictates the market, so what we believe is the health of our current econ-

omy, is our economy.

Case in point, the industries adding the most jobs in July are retail trade, which added 47,000 jobs, and food services and

drinking places within leisure and hospitality, which gained 38,000. Not only is discretionary spending increasing in these

luxury and leisure sectors, but we see overall demand increasing. The Supplier Deliveries Index, part of the July 2013 Non-

Manufacturing ISM Report on Business, showed a one-percentage point change from June. This means supplier deliveries are

slowing at a faster rate, indicating suppliers are not able to keep up with the increasing demand. Furthermore, the Advance

Monthly Sales for Retail and Food Services Report from the Census Bureau told us on August 13th that retail sales are still

relatively healthy. However, as consumers are spending, it seems suppliers are wary. The Business Inventories Report also

released on the 13th explained how businesses have kept their inventories flat with June even though sales increased. This

discrepancy between the two groups epitomizes our post recession recovery.

The next year or two will continue slow growth, of course discounting the various smaller business cycles that occur on a

quarterly and bi-quarterly basis. In two years time, we will see another dip in our economy, of course not a severe as the

great recession. This would fit the trend that can be observed from the civilian unemployment rate. The Bureau of Labor Sta-

tistics' Employment situation released the first week in August showed us that unemployment is decreasing, but seems to be

so at a slower rate. The unemployment rate edged down to 7.4 percent as total nonfarm payroll employment increased by

162,000 in July.

It is expected that US economy will not have a huge down spiral, but will not experience a boom either. More small fluctua-

tions and a slow growing economy will continue in the near future.

By Douglas Hammond

International Economy

Global economy is continuing to grow slowly due to the deceleration in Chinese economy, the positive economic activity yet highly vola-

tile financial environment in Japan, the anemic economic expansion in the US, and the slow out-of- recession improvement in Europe.

CHINA

Chinese economy is losing its strength, which is reflected in slowdown in economic activity. According to Markit Economics,

the purchasing managers’ index (PMI) for the manufacturing sector declined from 49.2 in May to 48.2 in June, indicating

deterioration in activity (note that a PMI below 50 reflects a decline in activity, while a PMI above 50 reflects a growth). This

was resulted from a decrease in new orders, especially in export orders. On the other hand, PMI for the services sector in-

creased from 51.2 in May to 51.3 in June, indicating an increase in activity, but this growth was at a modest pace. This falter-

ing result in economic activity reflects the low overseas demand, especially from Europe, and a decrease in domestic invest-

ments. Due to the increase in money supply, credit is growing rapidly, but not resulting in economic growth, and thus creat-

ing risks to the economy. In the 1st quarter of 2013, while credit grew at 58%, real GDP grew modestly at 7%.

JAPAN

In June, the PMI for the manufacturing sector reached 52.3, the highest level in 2.5 years, mostly due to increase in new or-

ders. Other good signs included increases in retail sales, industrial production, and shipments of capital goods; decrease in

inventory-sales ratio; and stabilization in consumer prices. Japanese executives are confident about the fruits of their eco-

nomic policy. Consumer confidence also rises and job markets have improved. Worker bonuses are going up, resulting in

more demand for large expenditures. Also, national sales tax is up to pay for the rising cost of pensions and healthcare, im-

proving Japan’s fiscal position.

On the other hand, Japanese financial market is facing volatility mainly because of the increase in government’s purchase of

bonds and expected inflation in Japanese yen, thus raises concerns over adjusting policy to fix problems.

By My Duong

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EUROPE

The Eurozone is now recovering its economic status. However, the unfavorable movements of private consumption, govern-

ment expenditure and investment activity have slowed down the progress. Specifically, private consumption declines due to

household deleveraging and falling disposable income. Governments are reluctant to increase expenditure to focus on re-

pairing their balance sheets after the crisis and preventing higher deficits. In addition, investment activity has been very low.

Since the crisis in 2009, the Eurozone’s exports have been growing significantly at 7.9% on average from 2010 to 2013

(Eurostat). According to EU Commission, trade balance has reached € 196 billion in 2013. The Eurozone tends to expand its

export area to countries outside its territory, resulting in a growth gap with faster growth in extra-Eurozone exports. There

appear new export destinations. Especially, exports to emerging markets such as BRIC countries (Brazil, Russia, India, Chi-

na) has increased significantly.

Special Topic: Emerging Economies By Paul de Vassal

While the United States economy struggles along, mired by political squabbles and an anemic recovery following the recent

crisis, worldwide growth has been carried forward by developing countries. Emerging Economies for the last decade or so, at

least since 2005 when Goldman Sachs bestowed the acronym BRIC on them, have been led by Brazil, Russia, India, and Chi-

na. Last year the four of them accounted for a quarter of worldwide growth. By the end of the decade, that number should

rise to one third.

As China, who makes up most of the BRIC growth, slows from double digit, to merely robust 7% or 8% growth, the rest of

the world is left asking: Where will growth come from in the future? How are we to escape the ills of stagnation and the zero

sum game? Etc. Some analysts allude to the projection that the United States is approaching what could be an explosive peri-

od of dynamic growth. Aided by an energy revolution, and stagnation elsewhere, the US could be the forerunner in coming

years.

Economic inequality has historically been characterized, at least generally, as usually occurring along East-West, or North-

South lines. With the former coming to a close, many of the new emerging economies now exist in the South. These coun-

tries, in Africa, South America, and South Asia, are likely to be the bulwarks of future growth. Standing in the way of their

development is the two immense challenges of unstable and despotic political institutions, and a lack of any real infrastruc-

ture. If those two ills could be cured, whether slowly by the unraveling of blockades to free markets and enterprise, or more

quickly by reforms, the world could be on the brink of, not a decades long slog to overpopulation, pollution, and poverty

(think Elysium), but centuries of technological growth, rising living standards, and exploration (perhaps to other worlds).

DES Past Events

Coop and Study Abroad Info

Session for Economic Students

Trip to

Washington

“War on Poverty”

Panel Discussion

References and citations are available on DES website at www.drexeleconomicssociety.com