Economics major expanded to better suit different career paths

Economics majors at Stanford now have more flexibility in charting their way to a degree.
 

The Department of Economics in the School of Humanities and Sciences has begun offering students the option of pursuing a Bachelor of Science degree, and the Bachelor of Arts program has been modified. Also, majors can now fine-tune their interests by pursuing certificates in business economics, environmental economics, data science, and finance.  

One of the most popular majors at Stanford, economics serves a range of students, from those seeking social-science insights into decision-making to those seeking specialized quantitative—or “quant”—skills for numbers-heavy careers in finance. 

“We recognize that economics is a big major,” said Christopher Makler, an advanced lecturer in economics and the department’s associate director of undergraduate studies. “It has a lot of different people who choose it for a lot of different reasons, and we want to serve all of those constituencies in the way that is best for them.”

Different math for different paths

One update for the BA degree is changing the math prerequisite from MATH 51: Linear Algebra, Multivariable Calculus, and Modern Applications to MATH 20: Calculus, or equivalent scores on AP tests. The multivariable calculus that economics students need, which is one part of the MATH 51 curriculum, will now be taught in ECON 50: Economic Analysis I, the basic price theory course required of all majors.

The committee formed to update the department’s curriculum found that MATH 51 presented a challenge for some students interested in economics. Students focusing on the more qualitative aspects of economics don’t generally need this level of math, according to B. Douglas Bernheim, the Edward Ames Edmonds Professor, who chaired the committee. 

“We don’t need them to get through MATH 51 unless they are going in the direction of the more ‘quant’ jobs—in which case we actually want them to have more math,” said Bernheim, who is also director of undergraduate studies in the department. “We decided we could serve both groups better by changing the prerequisite for the BA degree.” 

Consequently, the new BS pathway’s core requirements, which are more quantitative than the BA’s, include MATH 115: Functions of a Real Variable; STATS 117: Theory of Probability; CS 106B: Programming Abstractions; and math-intensive economics courses on topics such as econometrics and game theory.

In addition, a new version of ECON 50 with a more quantitative approach to the topic debuted this quarter. Students who opt to take this course, ECON 50Q: Economic Analysis I (Quantitative), attend the same lectures as their peers in ECON 50 but attend different sections, tackle more quantitative problem sets, and sit for different exams. 

The curriculum committee observed that a degree like the new BS is offered at several other leading universities and has successfully signaled to hiring committees and graduate schools that those students are well prepared to do quantitative work. 

Both the BA and the BS degree programs offer students the opportunity to explore their interests through departmental courses known as field courses, which aim to deepen students’ understanding of different subfields of economics, such as environmental markets and international trade. Both degrees programs also offer electives, though the BS requires fewer than the BA. Options for field courses and electives are highly curated for BS students, however, and their choices are all quantitatively focused.

“Neither is a better degree; they’re just different degrees,” Bernheim said.   

Certificates reflect areas of interest

Students on either degree path also can now obtain certificates in four areas: business economics, data science, environmental economics, and finance. The certificates allow students to narrow their focus within the major and signal to prospective employers that they’ve learned specific skill sets. To earn a certificate, a student must get a grade of C or better in at least four courses—equaling 18 or more units—from a prescribed list. 

For example, a student seeking a certificate in business economics might take BUSGEN 100: Triple Bottom Line: Managing Sustainable Value Creation and BUSGEN 103: Introduction to Accounting, Performance Management, and Managerial Decision-Making in the Graduate School of Business; ECON 135: Foundations of Finance and ECON 141: Financial Markets in the School of Humanities and Sciences; and MS&E 146: Corporate Financial Management in the School of Engineering, for a total of 20 units.

Students can earn more than one certificate but cannot apply a course toward more than one.

The four certificates come in response to areas of growing interest within economics, Bernheim said. Business and finance applications have long been in demand. The data science certificate allows for computer-focused data work to form part of a larger path of inquiry into economic questions. 

The environmental economics certificate reflects what Bernheim called “an explosion of interest” about finding economically robust ways to increase environmental sustainability. It also capitalizes on the social science faculty of the Stanford Doerr School of Sustainability, where students can take courses to fulfill certificate requirements. 

Similarly, the finance and business certificates reflect collaboration with the Graduate School of Business, which has begun offering a handful of classes for undergraduates through its Pathfinder pilot program.

“Students who are curious about exploring economics will discover that the major now offers greater flexibility for fashioning a program of study that matches their interests and career objectives,” Bernheim said. “The two degrees, along with the certificates, will also provide helpful opportunities to convey their specializations when applying for jobs and graduate schools.”

For more information about the degree programs’ requirements, visit the department’s website or contact student services officer Allana Karstetter (allanak [at] stanford [dot] edu (allanak[at]stanford[dot]edu)).