Rylee Anne Crowley

2019 Robert D. & Margaret A. Wark Memorial Scholarship Recipient

Biography:Rylee Crowley is a third year Economics major with the intent on minoring in Accounting from Las Vegas, Nevada. Outside of her economics classes, she enjoys taking Fiat Lux seminars and studying topics ranging from social justice movements to film. At UCLA, she is a part of the community service organization Hunger Project, where she is currently the co-director of its Advocacy and Outreach committee. In her free time, she enjoys baking, photography, painting, traveling, and trying new places to eat around LA.

Future plans:  Rylee is excited to be an accounting intern at CBIZ the summer following her junior year. After graduation, she hopes to become a CPA and work in the field of public accounting, eventually pursuing a law degree. In addition, she hopes to continue her advocacy and service aimed at ending the homelessness crisis in LA.

What does the scholarship mean to me?  I am greatly honored to be the recipient of the Robert D. & Margaret A. Wark Memorial Scholarship. One of my goals entering college was to follow in the footsteps of UCLA’s accomplished and inspiring alumni. For me, this means working hard and making an effort, whenever possible, to help others. This scholarship allows me to worry less about the financial burdens that come with being an out-of-state college student and focus on my studies. In addition, it allows me to dedicate more of my time to the service and advocacy work that I am passionate about. This award is especially meaningful because I feel recognized by the department for my dedication and academic achievement. I am deeply appreciative of the generosity of the Wark Family and cannot thank them enough for this gift.

Roya Dadgar

2019 John J. Peterson Scholarship Recipient

Biography: Roya Dadgar is a fourth year Business Economics major and Public Affairs minor. She previously served as a member of the executive board of a consulting club on campus, UConsulting, and was able to host events for the larger UCLA community through this role. She is also part of Club Tennis and Club JKD. As part of the UCLA Career Peers, she is passionate about helping fellow students pursue their career goals. During her free time, Roya enjoys spending time with friends, playing and watching tennis, and discovering new places in LA and learning about other cultures.

Future Plans: Roya has accepted an offer to be a Business Analyst at Deloitte Consulting in the Human Capital branch. Her passion for employee well-being and her curiosity for the future of the workplace make Human Capital a good fit. She plans to pursue an MBA after gaining some work experience in consulting. Ultimately, she would like to work towards expanding corporate social responsibility and diversity and inclusion in the workplace.

What does this scholarship mean to me? I am so honored to have been selected as the recipient of the John J. Peterson Scholarship. My family is grateful to the Petersons for this scholarship’s contribution towards my tuition. This scholarship inspires me to work hard so that I can also invest in students in this way in the future as well. I hope to spend my last quarter at UCLA mentoring other students with similar aspirations.

Jiahe Wang

2019 Ralph and Shirley Shapiro Scholarship Recipient

Biography: Jiahe Wang is a third-year student at UCLA. Born in China, he moved to Los Angeles at the age of 18 to pursue undergraduate studies. He was admitted to the pre-business economics major as a freshman. However, after taking accounting classes, he developed an interest in accounting and decided to minor in accounting as well. In his second year, in order to build his quantitative analyzing skills, he also started to major in financial actuarial mathematics. Jiahe actively participates in school activities. He has studied at The University of Hong Kong for a semester through the UCEAP program. He is also in the pledging process of Beta Alpha Psi Membership. Jiahe truly enjoys his time here at UCLA.

Future plans: Jiahe would like to turn his academic knowledge into practical experiences. He is actively seeking part-time internships as well as full-time internship positions for the summer. After graduation, he plans to take the CPA Exam and be a part of the accounting business, although he is also open to any opportunities in the financial industry. He also plans to pursue a Master’s degree after several years of work.

What does the scholarship mean to me: I am honored to receive the Ralph & Shirley Shapiro Scholarship. This award acknowledges my academic performance and encourages me to advance it to a higher level. The funds will greatly help me with my academic and living expenses. Again, I would like to sincerely appreciate the generosity of The Shapiro Family.

Bond Liquidity During the Covid-19 Crisis

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Pierre-Olivier Weill

The COVID-19 pandemic has wrought havoc on the global economy. To cope with this unprecedented economic shock, many large US corporations turned to the $10 trillion corporate bond market. However, with the prospect of downgrades and possible defaults, along with widespread outflows from corporate bond funds, reports of illiquidity began to surface very early on: in mid-March, 2020, former Federal Reserve chairs Bernanke and Yellen described the corporate bond market as “under significant stress”, while a report from Bank of America deemed the market “basically broken”. In response, the Federal Reserve introduced several facilities designed to bolster liquidity and reduce the costs and risks of intermediating corporate debt, including the Primary Dealer Credit Facility (PDCF) and the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF, respectively). The latter two facilities represented a particularly bold intervention, in that they allowed the Fed, for the first time, to make outright purchases of investment-grade corporate bonds issued by US companies, along with exchange-traded funds (ETFs) that invested in similar assets.

Corporate Bond Liquidity During the COVID-19 Crisis” is an empirical study of trading conditions in the US corporate bond market in response to the large economic shock induced by the COVID-19 pandemic, as well as the impact of the unprecedented interventions that followed. This study is co-authored by a team including UCLA faculty as well as current and former UCLA PhD students: Mahyar Kargar (University of Illinois faculty, former UCLA Anderson PhD student), Ben Lester (Senior economic advisor at the Federal Reserve Bank of Philadelphia), David Lindsay (UCLA PhD student), Shuo Liu (Tsinghua University, former UCLA PhD student), Professor Pierre-Olivier Weill (UCLA faculty), and Diego Zúñiga (UCLA PhD student).

A key contribution of this study is to consider both the cost and the quality of intermediation services provided. More specifically, it distinguishes between two types of transactions offered by dealers. First, fast transactions called “risky-principal” trades, that occur when dealers trade immediately in and out of their bond inventory. Second, slow transaction called “agency” trades, that occur when dealers do not trade from their inventory, but instead try to locate a trading counterparty for their customers (acting very much like real estate agents).

Using data from the Trade Reporting Compliance Engine (TRACE) made available by the Financial Industry Regulatory Authority (FINRA) the study separately measures the costs of risky-principal and agency trades. As shown in the Figure, the cost of risky-principal trades increased significantly during the COVID-induced panic, reaching a peak of more than 200 basis points (bps), while the cost of agency trades increased much more modestly.  As the premium paid for risky-principal trades increased, the study documents that the fraction of total volume executed as agency trades increased by as much as 15% at the height of the sell-off. This implies that the average trade was not only more expensive, but also more likely to be of lower quality. This highlights the importance of studying both the cost and quality of intermediation services: simply measuring the behavior of average transaction costs during this period would underestimate the deterioration in market liquidity.

As trading shifted from risky principal to agency transactions, the study shows that, somewhat astonishingly, the dealer sector as a whole absorbed no inventory, on net, during the most tumultuous period of trading. Hence, when the demand for transaction services surged, it was customers themselves that ultimately stepped up to provide additional liquidity. In fact, it was only after the announcement of the Federal Reserve’s interventions that dealers began to absorb inventory onto their balance sheets, and trading conditions started to improve. Indeed, after the announcement of the Fed’s credit facilities until June 2020, the quantity of corporate debt held by dealers more than doubled, relative to pre-COVID levels. At the same time, the cost of risky-principal trades decreased significantly, to approximately double the levels observed before the pandemic.

To establish the causal effect of the intervention on market liquidity, the paper exploits restrictions on the types of bonds that could be purchased through the Fed’s corporate credit facilities: it shows that, immediately  after the announcement of the SMCCF, the cost of trading bonds that were eligible for purchase by the Fed decreased substantially, while the cost of trading ineligible bonds was essentially unchanged. Later, when the program was expanded in both size and scope, we show that the trading costs of all bonds fell. Hence the initial announcement induced dealers to purchase eligible bonds at a lower cost, while the expansion of the corporate credit facility appears to have relaxed balance sheet constraints more generally, making dealers less reluctant to purchase any bond.Screen Shot 2020-10-30 at 4.13.03 PM

Anastasia Bogdanova

Bogdanova

Anastasia Bogdanova

“All these equations and graphs, how often am I going to use them at work anyway?”

More likely than not, this question will have crossed your mind at some point in your undergraduate career, especially when you’re scratching your head over an elusive concept in lectures or working through pages of dense problem sets. But the answer to this question: way more often than you’d expect! For some, like UCLA Economics alumna and economic consultant Anastasia Bogdanova, analytical frameworks and models are relevant every single day. Anastasia’s story is a perfect testament of how things you learn in the classroom can translate seamlessly into tangible and valuable skills in your professional career later on.

Like many of us Bruins, Anastasia’s journey at UCLA began as a junior transfer student from City College of San Francisco. She was captivated by the buzzing community the moment she set foot on the Hills of Westwood. “It truly felt like home,” she recalls while discussing her first encounter with our beloved campus. Between the breathtaking scenery and vibrant conversations, her mind was made up in a heartbeat. “It was exciting to imagine myself being a future student here!” Upon arriving in Southern California, she did not waste a single minute before immersing herself in the quintessential college experience. Getting on a rooter bus to the Rose Bowl amidst an energized stream of blue and gold, going on spontaneous trips to Westwood to discover new restaurants or wave to celebrities at movie premieres, and studying with floormates in the dorm lounge were all experiences that left lasting memories. It is often not until we step out of the college bubble and into the “real world” that we realize we’ll never get to live this life again, and to Anastasia, these memories are held dear to heart.

Equally treasured are the wonderful classmates she met and the lifelong friendships she forged in Westwood. Whether it was learning to speak French at the Cercle Francophone, helping organize events at the USAC Office of the President, or simply reflecting on life’s ups and downs during a meal with friends in the dining halls, she was always surrounded by people who cared deeply about each other and the world around them.

Initially a business major in community college, Anastasia developed a particular interest in economics. At UCLA, she enrolled in honors seminars on applied econometrics and microeconomics, which she credits with giving her a first look at what rigorous economic research was like. Anastasia also remembers being in Econ 167 – Victims and Villains; Panics and Bubbles taught by professors Andy Atkeson and William Simon, which was more relevant than ever in the immediate aftermath of the Great Recession of 2008. Exploring all the mechanisms at work behind the scenes, she was fascinated by the interplay between economic theory and real-world phenomena. She decided to pursue a Master’s degree in the field to advance her understanding of theoretical and applied economics.

Graduate school applications can be a daunting experience for anyone. Anastasia’s secret: knocking on professors’ doors. “Don’t be intimidated to reach out and ask for help or advice, even if you are in a class with 200 or 300 other students!” These conversations turned out to be an important factor contributing to her successful admission to Duke University’s M.A. Economics program. She gratefully recalls how the faculty supported her throughout the application process, in particular by sharing lessons learned throughout their own experiences.

Two years later, Anastasia ventured out into the professional world, and economic consulting enabled her to combine and apply the skills gained at UCLA and Duke. She moved back to the City of Angels and joined Analysis Group, one of the largest economic consulting firms. Compared to the more strategy-centered nature of management consulting, an economic consultant’s work often occurs within the context of litigation proceedings and can involve analyzing data, applying econometric and statistical models, and examining events. One of her favorite aspects of the job is the breadth of industries she’s exposed to. Since beginning her career at the firm, Anastasia has worked on cases in areas ranging from healthcare to finance, and so on. “There’s no typical day,” she said, with each new project bringing about fresh questions and opportunities for growth.

For Anastasia, learning never stops. A few years into her professional career, she returned to UCLA by enrolling in the Data Science certificate program at the extension school. Indeed, the sense of nostalgia never left. Amidst a busy work schedule, she still finds time to stop by her alma mater every now and then. “It’s always been like that for me … Westwood always felt like a great place to be.”

Her story is one of a dedicated student turned successful professional who found passion inside the classroom and shaped it into a thriving career in the professional sphere. So, for any Bruin feeling hopeless amid endless problem sets, you can take solace in knowing that hard work, paired with passion and dedication, always pays off.

Written by Simon Dong

Announcing New Marketing Video for UCLA Economics!

With the help from UCLA Partnership, the UCLA Department of Economics is excited to announce the newly created and published Introduction to the UCLA Economics Department marketing video. This project has been months in the works–but we are super proud of this final product that we can share with all of you! Thank you to everyone who helped make this video possible!

Moshe Buchinsky Named 2020 Econometric Society Fellow

Moshe Buchinsky was recently named a 2020 Econometric Society Fellow. The Econometric Society is one of the most prestigious learned society in the field of economics, with a world-wide membership. Its main object is to promote studies that aim at a unification of the theoretical and empirical approach to economic problems and that are penetrated by constructive and rigorous thinking similar to that which has come to dominate in the natural sciences. It operates as a purely scientific organization, without any political, social, financial or nationalistic allegiance or bias. The society is run by the Fellows who choose the constitution and elect the leadership. In turn, the leadership runs the journals of the society (Econometrica, Theoretical Economics, Quantitative Economics), and a series of conferences around the world. There are currently around 700 Fellows across the globe.

Rosa Matzkin elected VP of the Econometric Society

Rosa Matzkin has been elected Second Vice-President of the Econometric Society. She will presumably become First Vice-President in 2022 and President in 2023.

The Econometric Society is an international society for the advancement of economic theory in its relation to statistics and mathematics.  Officers and New Fellows are elected each year by the current Fellows. There are about 700 Elected Fellows of the Econometric Society.

The main activities of the Society are:

  • Publication of the journals Econometrica, Quantitative Economics, and Theoretical Economics.
  • Publication of a research Monograph Series.
  • Organization of scientific meetings in six regions of the world.

Martha Bailey awarded Russell Sage and NIH Grants

One of our newest faculty members, Martha Bailey, is hitting the ground running at UCLA with the funding of two new research proposals.

The first is for the project, “Measuring Intergenerational Mobility in the US over the 20th Century,” funded by the Center for Equitable Growth and the Russell Sage Foundation.  The project aims to quantify national rates of intergenerational mobility in terms of occupation, income and education for the early 20th Century using Social Security Administration SS5 data that includes all states as well as women and men (because the records contain women’s married and birth names).  The project uses machine learning to generate large enough samples to allow the researchers to correlate early 20th century policies and area characteristics with geographic variation in intergenerational mobility, similar to Chetty et al.’s Opportunity Atlas for the modern period.

In addition, M-CARES, a randomized control trial evaluating the role of out-of-pocket costs on women’s choice of contraceptive method, has been funded by the National Institutes of Health. M-CARES aims to evaluate the role of the price of contraceptives in women’s choice of contraceptive method, unintended pregnancy, and her life outcomes.  The NIH allows the researchers to recruit a larger sample to study how unintended pregnancy affects the lives of older children, including their health, educational achievement, and wages.

Congratulations, Martha!

Welcoming 7 New Faculty Members!

The UCLA Department of Economics is excited to announce that we are welcoming 7 new faculty members to our department for the 2020-2021 academic year. We are excited to have them join our ranks and welcome them all to Los Angeles! For more information about each of the new faculty members, click below:

Martha Bailey
Professor
Labor Economics

Natalie Bau
Assistant Professor
Development, Industrial Organization

Daniel Haanwinckel
Assistant Professor
Applied Microeconomics, Development, Labor Economics

Juliana Londono-Velez
Assistant Professor
Development, Labor Economics, Public Economics

Michael Rubens
Assistant Professor
Industrial Organization

Yotam Shem-Tov
Assistant Professor
Applied Econometrics, Labor Economics, Public Economics

Chris Surro
Assistant Adjunct Professor
Macroeconomics