phd economics vs finance

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The field of finance covers the economics of claims on resources. Financial economists study the valuation of these claims, the markets in which they are traded, and their use by individuals, corporations, and the society at large.

At Stanford GSB, finance faculty and doctoral students study a wide spectrum of financial topics, including the pricing and valuation of assets, the behavior of financial markets, and the structure and financial decision-making of firms and financial intermediaries.

Investigation of issues arising in these areas is pursued both through the development of theoretical models and through the empirical testing of those models. The PhD Program is designed to give students a good understanding of the methods used in theoretical modeling and empirical testing.

Preparation and Qualifications

All students are required to have, or to obtain during their first year, mathematical skills at the level of one year of calculus and one course each in linear algebra and matrix theory, theory of probability, and statistical inference.

Students are expected to have familiarity with programming and data analysis using tools and software such as MATLAB, Stata, R, Python, or Julia, or to correct any deficiencies before enrolling at Stanford.

The PhD program in finance involves a great deal of very hard work, and there is keen competition for admission. For both these reasons, the faculty is selective in offering admission. Prospective applicants must have an aptitude for quantitative work and be at ease in handling formal models. A strong background in economics and college-level mathematics is desirable.

It is particularly important to realize that a PhD in finance is not a higher-level MBA, but an advanced, academically oriented degree in financial economics, with a reflective and analytical, rather than operational, viewpoint.

Faculty in Finance

Anat r. admati, juliane begenau, jonathan b. berk, michael blank, greg buchak, antonio coppola, darrell duffie, steven grenadier, benjamin hébert, arvind krishnamurthy, hanno lustig, matteo maggiori, paul pfleiderer, joshua d. rauh, claudia robles-garcia, ilya a. strebulaev, vikrant vig, jeffrey zwiebel, emeriti faculty, robert l. joss, george g.c. parker, myron s. scholes, william f. sharpe, kenneth j. singleton, james c. van horne, recent publications in finance, monetary tightening and u.s. bank fragility in 2023: mark-to-market losses and uninsured depositor runs, trading stocks builds financial confidence and compresses the gender gap, expectations and the neutrality of interest rates, recent insights by stanford business, a “grumpy economist” weighs in on inflation’s causes — and its cures, the surprising economic upside to money in u.s. politics, your summer 2024 podcast playlist.

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Finance (Business) & Economics—Joint Degree

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About the Program

The joint Wisconsin PhD Program in finance and economics trains researchers for tenure-track positions at the nexus of these two fields. Specializing in this area will provide you with the opportunity to expand your academic career path to both economics and finance departments at top universities.

The program stresses high-quality research with a focus on developing the core basics of economics, then specialization in areas of finance and economics. Students in the joint program are required to take a common curriculum and to meet all requirements of both the Economics and Finance PhD programs.

Core Areas of Research

Asset pricing

Corporate finance

Macroeconomics

Market microstructure

Microeconomics

Finance theory

Academic Requirements

All students must meet the general PhD requirements of the UW–Madison Graduate School, the Department of Economics , and the Wisconsin School of Business. Students should have the following background to be admitted:

• Completed and performed well in basic undergraduate economics or finance courses
• Mathematics preparation should include multivariate calculus, elementary probability, statistics, and regression analysis
• One course in linear algebra
• Three-course sequence in calculus, including multivariate calculus*
• One course in mathematical statistics*
• Any additional background in mathematics and graduate-level economics courses can ease the transition into the program

* For additional information about which topics are most important to review before graduate coursework begins visit: https://econ.wisc.edu/doctoral/admissions/math-requirements/

Program Coursework

The first year of the program is dedicated to training in the core basics of economics with a focus on microeconomics, macroeconomics and econometrics. The summer following the first year of the program all students must take the economics micro and macro comprehensive exams.

The second year of the program focuses on finance with an emphasis on financial theory, corporate finance, asset pricing, and finance workshops. Finance workshops consist of each student presenting their preliminary research in front of the finance faculty. The summer following the second year of the program all students must take the finance comprehensive exam. Further, students must take three other classes in economics and present their preliminary research in front of the economics faculty.

The third year of the program includes two classes in economics and additional workshops with a focus on completing a research paper on a finance or economics topic. The topic may be either theoretical or empirical, and should contain elements of original research that extend the existing literature.

Advancement to Dissertator Status requires: (1) Successful completion of both economics and finance comprehensive exams; (2) successful completion of a sole-authored paper requirement.

Each milestone requirement—field paper, three-signature proposal, and dissertation committee—must include at least one faculty member from both the economics and the finance department. A single dissertation, approved by members comprised of both departments, is sufficient to fulfill the dissertation requirement.

See Guide for all course requirements

Faculty Research Interests

Hengjie Ai Research interests: Financial economics Macroeconomics Economic Theory View full profile Briana Chang Research interests: Financial intermediation Market microstructure Information economics Search and matching theory View full profile P. Dean Corbae Research interests: Consumer credit Bankruptcy Foreclosures Banking industry dynamics View full profile Bjorn Eraker Research interests: Asset pricing Derivatives Econometrics of financial markets Equilibrium modeling View full profile Mark Fedenia Research interests: Investment management Wealth management Liquidity View full profile Oliver Levine Research interests: Corporate finance Corporate investment Executive compensation Mergers and acquisitions Intangible capital View full profile Antonio Mello Research interests: Corporate financial policy Corporate risk management Corporate finance and industrial organization Capital market imperfections and stability International finance View full profile Dmitry Orlov Research interests: Banking Markets for repurchase agreements Bayesian Persuasion Dynamic contracts Mutual Funds View full profile Sebastien Plante Research interests: Microstructures Credit markets Liquidity Corporate finance View full profile Erwan Quintin Research interests: Growth and development economics Financial economics Macroeconomics View full profile Roberto Robatto Research interests: Banking Macroeconomics Monetary and financial economics Evolutionary foundations of economic behavior View full profile Sang Seo Research interests: Asset pricing Macro-finance Derivatives Financial econometrics View full profile Ivan Shaliastovich Research interests: Asset pricing Financial econometrics View full profile Randall Wright Research interests: Monetary, macro, and labor economics Asset pricing View full profile Connect With Current Students

We encourage you to contact our doctoral students in the finance and economics joint degree program to hear their perspectives on the Wisconsin PhD

View current student profiles

See Our Placement Results

Graduates of our PhD specialization in accounting and information systems have accepted tenure-track positions at top research universities.

View recent placements

Dean Corbae

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[D] PhD in Economics, Finance, Mathematics, and/or Statistics?

How can you choose which PhD subject to pursue for Quantitative Finance: PhD in Economics, Finance, Math, or Statistics? Does your choice depend on your aspired job in Quantitative Finance e.g. Academia, Exotics Trading at an investment bank, Hedge Fund, lone Trader at Home? Please don't hesitate to sub-divide your answer.

I'm addled because each of these Finance professionals earned a PhD in different subjects.

Bing Han - Rotman School of Management, Professor of Finance, TMX Chair in Capital Markets has 2 PhDs!

Ph.D. in Finance, Anderson Graduate School of Management, UCLA Ph.D. in Mathematics, University of Chicago

Peng Zhao - Citadel Securities

He received a bachelor’s degree in applied mathematics from Peking University, and subsequently attended the University of California at Berkeley as a Berkeley Fellow and graduated with a doctorate in statistics .

Ian Martin, Professor of Finance, London School of Economics

Harvard University, 2003-2008 PhD, Economics

London School of Economics and Political Science, 2002-2003 MSc, Economics, with Distinction

University of Cambridge, 1995-1999 MA, Mathematics, with First Class Honours in each year MMath (“Part III”) with Distinction

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Finance vs. Economics: An Overview

Special considerations.

• Macroeconomics

Finance vs. Economics: What's the Difference?

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Although they are often taught and presented as separate disciplines, economics and finance are interrelated and inform and influence each other. Investors care about these studies because they also influence the markets to a great degree. It's important for investors to avoid "either/or" arguments regarding economics and finance; both are important and have valid applications.

As a general social science, the focus of economics is more on the big picture, or general questions about human behavior around the allocation of real resources. The focus of finance is more on the techniques and tools of managing money. Both economic and finance also focus on how companies and investors evaluate  risk and return. Historically, economics has been more theoretical and finance more practical, but in the last 20 years, the distinction has become much less pronounced.

In fact, the two disciplines seem to be converging in some respects. Both economists and finance professionals are being employed in governments, corporations, and financial markets . At some fundamental level, there will always be a separation, but both are likely to remain very important to the economy, investors, and the markets for years to come.

Key Takeaways

• Economics and finance are interrelated disciplines that inform each other, even if the specifics are distinct.
• Finance, as a discipline, is derived from economics; it involves assessing money, banking, credit, investments, and other aspects of the financial systems.
• Finance can be further broken down into three related but separate categories—public finance, corporate finance, and personal finance.
• Economics looks at how goods and services are made, distributed, and used, as well as how the economy overall functions, along with the people who drive economic activity.
• The two main branches of economics are macroeconomics, which looks at the overall economy, and microeconomics, which looks at specific factors within the economy.

Finance in many respects is an offshoot of economics. Finance describes the management, creation, and study of money, banking, credit, investments, assets, and liabilities that make up financial systems, as well as the study of those  financial instruments . Finance can be divided into three categories: public finance, corporate finance, and personal finance.

Finance typically focuses on the study of prices, interest rates, money flows, and the financial markets. Thinking more broadly, finance tends to center around topics that include the time value of money, rates of return, cost of capital, optimal financial structures, and the quantification of risk.

Finance, as in the case of corporate finance, involves managing assets, liabilities, revenues, and debt for a business. Businesses obtain financing through a variety of means, ranging from equity investments to credit arrangements. A firm might take out a loan from a bank or arrange for a line of credit—acquiring and managing debt properly can help a company expand and ultimately become more profitable.

Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings, and retirement planning.

Public finance includes tax systems, government expenditures, budget procedures,  stabilization policy  and instruments, debt issues, and other government concerns. 

A degree in finance is a common denominator among many of those who work on Wall Street as analysts, bankers, or fund managers. Likewise, many of those employed by commercial banks, insurance companies, and other financial service providers have college backgrounds in finance. Apart from the finance industry itself, a degree in finance can be a pathway to senior management of companies and corporations.

Finance involves assessing the value of financial instruments, such as the determination of fair value for a wide range of investment products . Finance includes the use of stock-pricing models like the capital asset pricing model (CAPM) and option models like Black-Scholes. Finance also includes determining the optimal dividend or debt policy for a corporation or the proper asset allocation strategy for an investor.

It can also be argued that finance affects the markets with a seemingly constant stream of new products. Although many derivatives and advanced financial products have been maligned in the wake of the Great Recession , many of these instruments were designed to address and solve market demands and needs. For example, derivatives can be used to hedge risk for investors, hedge funds, or large banks, thus protecting the financial system from harm in the event of a recession. 

Economics takes a more theoretical look, while finance is more applied, however, both are connected disciplines, with some overlap.

Economics is a social science that studies the production, consumption, and distribution of goods and services, with the aim of explaining how economies work and how people interact. Although labeled a "social science" and often treated as one of the liberal arts, modern economics is in fact often very quantitative and heavily math-oriented in practice. There are two main branches of economics: macroeconomics and microeconomics.

Macroeconomics   is a branch of economics that studies how the aggregate economy behaves. In macroeconomics, a variety of economy-wide phenomena are thoroughly examined, such as inflation, national income, gross domestic product (GDP), and changes in unemployment.

Microeconomics is the study of economic tendencies, or what's likely to happen when individuals make certain choices or when the factors of production change. Just as macroeconomics focuses on how the aggregate economy behaves, microeconomics focuses on the smaller factors that affect choices made by individuals and companies.

Microeconomics also explains what to expect if certain conditions change. If a manufacturer raises the prices of cars, microeconomics says consumers will tend to buy fewer than before. If a major copper mine collapses in South America, the price of copper will tend to increase, because supply is restricted.

Macroeconomics can be applied in tracking GDP, inflation, and deficits to help investors make more informed decisions. Microeconomics could help an investor see why Apple Inc. stock prices might fall if consumers buy fewer iPhones. Microeconomics could also explain why a higher minimum wage might force a company to hire fewer workers.

When economists succeed in their aims to understand how consumers and producers react to changing conditions, economics can provide powerful guidance and influence to policy-making at the national level. In other words, there are real consequences to how governments approach taxation, regulation, and government spending; economics can offer insight and analysis regarding these decisions.

Economics can also help investors understand the potential ramifications of national policy and events on business conditions. Understanding economics can give investors the tools to predict macroeconomic conditions and understand the implications of those predictions on companies, stocks, and financial markets. 

For those who choose to pursue a career in economics, academia is an option. Academics spend their time not only teaching students the principles of economics but also researching within the field and formulating new theories and explanations of how markets work and how their agents interact.

Economists are also employed in  investment banks , consulting firms, and other corporations. The role of economists can include forecasting growth such as GDP, interest rates, inflation, and overall market conditions. Economists provide analysis and projections that might assist with the sale of a company's product or be used as input for managers and other decision-makers within the company.

Economics can be used by market participants to help understand the causes and likely outcomes of market events and the impact on various sectors, companies, and the overall business cycle.

The applications include understanding how changes in national income, inflation, long-term economic growth, and interest rates impact the markets and ultimately stocks. An important area of focus for economists is determining how changes in monetary policy by central banks like the U.S. Federal Reserve can impact the economy, both in the U.S. and globally.

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PhD Joint Program in Financial Economics

The financial economics phd program leverages the strengths of two renowned programs: the phd program in finance and the university of chicago’s kenneth c. griffin department of economics..

Core economics training is critical for students doing research in financial economics, and advances in financial economics have important implications for other areas of economics.

As a student in our Joint Program in Financial Economics , you’ll work with thought leaders in both economics and finance and follow your research interests wherever they lead. Leveraging courses and resources in the Finance dissertation area at Chicago Booth and the university’s Kenneth C. Griffin Department of Economics , you’ll build a foundation for research at the intersection of finance and economics.

Our Distinguished Finance and Economics Faculty

As a student in the joint program, you’ll work with professors and classmates in both the Department of Economics and the Stevens Doctoral Program in Finance at Chicago Booth. Faculty bring research expertise in a wide range of fields and serve as mentors to PhD students.

Finance Faculty

Francesca Bastianello

Assistant Professor of Finance and Liew Family Junior Faculty Fellow, Fama Faculty Fellow

Emanuele Colonnelli

Professor of Finance and Entrepreneurship

George M. Constantinides

Leo Melamed Professor of Finance

Douglas W. Diamond

Merton H. Miller Distinguished Service Professor of Finance

Eugene F. Fama

Robert R. McCormick Distinguished Service Professor of Finance

Niels Gormsen

Neubauer Family Associate Professor of Finance and Fama Faculty Fellow

Lars Hansen

David Rockefeller Distinguished Service Professor The University of Chicago Departments of Economics, Statistics and the Booth School of Business

John C. Heaton

Joseph L. Gidwitz Professor of Finance

Steven Neil Kaplan

Neubauer Family Distinguished Service Professor of Entrepreneurship and Finance and Kessenich E.P. Faculty Director at the Polsky Center for Entrepreneurship and Innovation

Anil Kashyap

Stevens Distinguished Service Professor of Economics and Finance

Ralph S.J. Koijen

AQR Capital Management Distinguished Service Professor of Finance and Fama Faculty Fellow

Professor of Finance and Fama Faculty Fellow

Stefan Nagel

Fama Family Distinguished Service Professor of Finance

Scott Nelson

Assistant Professor of Finance and Cohen and Keenoy Faculty Scholar

Pascal Noel

Neubauer Family Professor of Finance and Kathryn and Grant Swick Faculty Scholar

Lubos Pastor

Charles P. McQuaid Distinguished Service Professor of Finance and Robert King Steel Faculty Fellow

Raghuram G. Rajan

Katherine Dusak Miller Distinguished Service Professor of Finance

Bruce Lindsay Distinguished Service Professor of Economics and Public Policy

Pietro Veronesi

Deputy Dean for Faculty and Chicago Board of Trade Professor of Finance

Robert W. Vishny

Myron S. Scholes Distinguished Service Professor of Finance and Neubauer Faculty Director of the Davis Center

Michael Weber

Associate Professor of Finance

Anthony Lee Zhang

Luigi Zingales

Robert C. McCormack Distinguished Service Professor of Entrepreneurship and Finance

Professor of Economics and Finance

Department of Economics Faculty

Fernando Alvarez

Ali Hortacsu

Harald Uhlig

Kenneth C. Griffin Department of Economics

Alumni success.

Our PhD graduates lead successful careers  in prestigious academic settings, such as the Stanford Graduate School of Business and London Business School, as well as in leading financial institutions, including the International Monetary Fund.

Jane (Jian) Li, PhD '21

Assistant Professor of Business, Finance Division Columbia Business School, Columbia University Jane's research lies at the intersection of macroeconomics and finance. She is particularly interested in how financial intermediaries affect the real economy and how different types of financial institutions can contribute to financial instability. Her dissertation area is in financial economics.

A Network of Support

Doctoral students at Booth have access to the resources of several interdisciplinary research centers that offer funding for student work, host workshops and conferences, and foster a strong research community.

Becker Friedman Institute for Economics Bringing together researchers from the entire Chicago economics community, the Becker Friedman Institute fosters novel insights on the world’s most difficult economic problems.

Center for Research in Security Prices CRSP maintains one of the world’s largest and most comprehensive stock market databases. Since 1963, it has been a valued resource for businesses, government, and scholars.

Fama-Miller Center for Research in Finance Tasked with pushing the boundaries of research in finance, the Fama-Miller Center provides institutional structure and support for researchers in the field.

George J. Stigler Center for the Study of the Economy and the State Dedicated to examining issues at the intersection of politics and the economy, the Stigler Center supports research by PhD students and others who are interested in the political, economic, and cultural obstacles to better working markets.

The Kent A. Clark Center for Global Markets Enhancing the understanding of business and financial market globalization, the Clark Center for Global Markets positions Chicago Booth as a thought leader in the understanding of ever-changing markets and improves financial and economic decision-making around the world.

Macro Finance Research Program The Macro Finance Research Program (MFR) expands our understanding of how financial markets affect the economy as a whole and, conversely, how the macroeconomy influences financial markets. It does so by bringing together a community of elite and emerging scholars and with common ambitions to tackle these important challenges. One of the important ambitions of this program is to provide intellectual and research support for advanced students in the joint PhD program in financial economics.

Rustandy Center for Social Sector Innovation Committed to making the world more equitable and sustainable, the Rustandy Center works to solve complex social and environmental problems. The center’s student support includes fellowships, research funding, and networking opportunities.

Spotlight on Research

Chicago Booth Review regularly highlights the research findings of Booth faculty and PhD students in financial economics.

Line of Inquiry: Amir Sufi on Household Debt and Business Cycles

Chicago Booth’s Amir Sufi explains how the financial sector's willingness to extend credit to households helps fuel booms and busts.

How is IT Spending Changing Banking?

According to researchers Zhiguo He (previous Booth prof.), Sheila Jiang and Douglas Xu (both Booth PhD graduates), and Xiao Yin, IT investment figures prominently in banking activities.

How Can We Calculate the US's Greatest Fortunes?

Chicago Booth’s Eric Zwick and his coauthors have devised a new way to gauge how much wealth the ultrawealthy have and what it’s composed of. Their results can help update and sharpen the picture of inequality in the US.

The PhD Experience at Booth

Maryam Farboodi, PhD ’14, talks about how the Booth faculty challenged her to focus her research on issues that are applicable to the current financial sector.

Video Transcript

Maryam Farboodi, ’14: 00:02 My work lies in the intersection of finance and economics, trying to apply theoretical models to think about broader questions in big data technology. I was doing extremely theoretical research and I was always interested in doing stuff which are more related to the real world, which led me to join Chicago econ and then the Joint Financial Economics Program at Chicago Booth.

Maryam Farboodi, ’14: 00:29 The faculty really helped me focus my research on issues that are relevant to the current financial climate. A lot of current policy focuses on how financial institutions intermediate for each other and that has been the focus of my research. The faculty at Chicago Booth challenged me in making sure that the insight is applicable to the current financial sector.

Maryam Farboodi, ’14: 00:52 What is really, really special about Booth is the really close interaction between the faculty here and the econ department. Chicago Booth, in particular the joint program, is the best place you can be in. It provides an environment where you can interact with people who are extremely deep in both finance and economics and not lose track of important issues. Chicago Booth and Econ has really being like home to me. That's the feeling that any student can get if they really engage themselves with faculty. 

Current Financial Economics Students

Students in Chicago Booth’s Joint Program in Financial Economics focus their PhD research on a vast array of issues, from state-government borrowing costs to wealth inequality to climate policy. They go on to positions at leading academic institutions and global financial organizations.

Current Students

Monica Barbosa

Filippo Cavaleri

Manav Chaudhary

Shirui (Suri) Chen Leo Aparisi De Lannoy

Laurenz De Rosa

Joanna Harris Jacob Hartwig

Lewei He Tanvi Jindal

Jingoo Kwon

Federico Mainardi

Benjamin Marrow

See a list of the current students in our Finance PhD Program .

How to Apply

To join the Joint Program in Financial Economics, you will need to be admitted to both the doctoral program in the Department of Economics and the PhD Program in Finance at Chicago Booth. However, you need only apply to one or the other program. Learn more about applying to Chicago Booth or to the Department of Economics .

Program Requirements

Learn more about the Joint Program in Financial Economics at Chicago Booth on the website or by referencing the joint program-specific guidebook below. See Joint Program-Specific Guidebook

General Program Expectations and Requirements

The Stevens Program at Booth is a full-time program. Students generally complete the majority of coursework and examination requirements within the first two years of studies and begin work on their dissertation during the third year. For details, see General Examination Requirements by Area in the Stevens Program Guidebook below.

Download the 2023-2024 Guidebook!

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Financial Economics Ph.D.

Kellogg Program Description

Finance Department Website

The Department of Economics and the Finance Department in the Kellogg School of Management have a joint Ph.D. degree in Financial Economics.

The following requirements are in addition to, or further elaborate upon,  general degree requirements  and the policies on  Satisfactory Progress, Probation and Exclusion  of The Graduate School, and additional requirements for Satisfactory Academic Progress of the Department of Economics and the Finance Department.

Coursework Requirements

Total Required Units:  18

Other Ph.D. Degree Requirements

Examinations: satisfactory grades in each of the three core areas (microeconomics, macroeconomics, and econometrics); oral examination for approval of dissertation prospectus

  Research/Projects:  two research papers presented in the student seminar (ECON 501) or equivalent. Out of these, one paper is the second-year summer paper detailed below

  Finance Comprehensive Exam : Students must pass a Finance Competence Requirement. This can be done by achieving a 3.6 GPA across the six finance doctoral courses (FINC 585-1,2,3 and FINC 586-1,2,3), or by passing a comprehensive Finance exam. The Exam takes place at the beginning of the summer quarter of the second year, typically in June.

  Second-year Research Paper and Advisors: Students need to complete a research project to be presented to the department in the first week of September at the end of the summer quarter of the second year. The research project must be supervised by an individual faculty advisor (who can be the same as, or distinct from, the Academic Advisor) selected by the end of the winter quarter. The second-year advisor need not be the same person as the eventual main dissertation advisor.

  Ph.D. Dissertation:  original, independent research

  Final Evaluations:  oral dissertation defense

  Supervised Teaching Experience:  All doctoral students are required to act as a teaching assistant for at least one quarter. As part of these duties, the student must lead a weekly discussion section. Teaching experience is an essential part of graduate training. Foreign students must demonstrate acceptable English proficiency as prescribed by The Graduate School. Evaluations are made and kept as part of the students' record.

 There are two points of entry into the joint graduate program in Financial Economics.

• The first is a direct application when applying to graduate school at Northwestern. Admission requires approved by both the Economics and the Finance admissions committees.
• The second is for students initially enrolled in the Economics Ph.D. program to apply for entry after achieving candidacy. (Students initially enrolled in the Finance Ph.D. program can do the same.) Economics students should initiate the process by contacting the Economics Director of Graduate Studies immediately after candidacy. Applications must be approved by both the Economics and the Finance admissions committees. If the application is approved, the student initiates a degree transfer request to The Graduate School.

• Doctoral Programs

Financial economics encompasses a broad area of topics and issues, including corporate investments and financing policy, security valuation, portfolio management, the behavior of prices in speculative markets, financial institutions, and intermediation.

The PhD specialization in finance is designed to give the student a strong background for study and research in both theoretical and empirical work in finance and related areas. Emphasis is placed on understanding the important concepts and models. Students normally take several graduate courses in the Department of Economics, particularly in microeconomics and macroeconomic theory, the economics of uncertainty, and econometrics.

The program offers two courses specifically in financial theory and its applications. In addition, the faculty and doctoral students attend a seminar that features speakers from around the country. However, the specialization is built primarily around individual study and research under the guidance of the faculty.

Examples of potential areas of research for the financial economics dissertation:

• Principal-agent relationships
• Financial intermediation
• Efficiency of markets
• Portfolio selection

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The Columbia Advantage

Finance Doctoral students are trained in major areas in finance and economics, including, asset pricing, corporate finance, continuous-time models in finance, information economics, international finance, market micro-structure, and banking. The program prepares students for careers in scholarly research, and graduates take jobs primarily in academic or research institutions, while some students opt to work in industry. Details about the coursework and research students conduct on their way to earning their doctorate can be found on the  Academics page.  

The Finance Division at Columbia Business school has a track record of training scholars who go on to become academics at Universities, including many of the world’s most prestigious institutions. Our placement success is due in part to the close working relationship that students develop with the faculty in the division. The School intentionally keeps the PhD program small making it easier for students to find faculty collaborators and thrive. See our  Placement page  for more information.

Student Life

The Columbia Business School doctoral community consists of 125 students across six programs. The program attracts exceptional students from all over the world who are looking to develop research skills under the tutelage of faculty experts. Students come to the School for the exceptional training but also because they value the diversity, creativity, entrepreneurship and social tolerance that NYC offers. See here  for more about student life. 

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PhD Program in Finance

2023-24 curriculum outline.

The MIT Sloan Finance Group offers a doctoral program specialization in Finance for students interested in research careers in academic finance. The requirements of the program may be loosely divided into five categories: coursework, the Finance Seminar, the general examination, the research paper, and the dissertation. Attendance at the weekly Finance Seminar is mandatory in the second year and beyond and is encouraged in the first year.  During the first two years, students are engaged primarily in coursework, taking both required and elective courses in preparation for their general examination at the end of the second year.  Students are required to complete a research paper by the end of their fifth semester, present it in front of the faculty committee and receive a passing grade.  After that, students are required to find a formal thesis advisor and form a thesis committee by the end of their eighth semester. The Thesis Committee should consist of at least one tenured faculty from the MIT Sloan Finance Group.

Required Courses

The following set of required courses is designed to furnish each student with a sound and well-rounded understanding of the theoretical and empirical foundations of finance, as well as the tools necessary to make original contributions in each of these areas. Finance PhD courses (15.470, 15.471, 15.472, 15.473, 15.474) in which the student does not receive a grade of B or higher must be retaken.

First Year - Summer

Math Camp begins on the second Monday in August. 

First Year - Fall Semester

14.121/14.122 Micro Theory I/II

14.451/14.452 Macro Theory I/II ( strongly recommended)

14.380/14.381 — Statistics/Applied Econometrics

15.470 — Asset Pricing

First Year - Spring Semester

14.123/14.124 Micro Theory III/IV

14.453/14.454 Macro Theory III/IV (strongly recommended)

14.382 – Econometrics

15.471 – Corporate Finance

Second Year - Fall Semester

15.472 — Advanced Asset Pricing

  14.384 — Time-Series Analysis or  14.385 — Nonlinear Econometric Analysis  (Enrolled students receive a one-semester waiver from attending the Finance Seminar due to a scheduling conflict)

15.475 — Current Research in Financial Economics

Second Year - Spring Semester

15.473 — Advanced Corporate Finance

 15.474 — Current Topics in Finance (strongly encouraged to take multiple times)

15.475 — Current Research in Financial Economics

Recommended Elective Courses

Beyond these required courses, students are expected to enroll in elective courses determined by their primary area of interest. There are two informal “tracks” in Financial Economics: Corporate Finance and Asset Pricing. Recommended electives are designed to deepen the student's grasp of material that will be central to the writing of his/her dissertation. Students also have the opportunity to take courses at Harvard University. There is no formal requirement to select one track or another, and students are free to take any of the electives.

PhD Program

Year after year, our top-ranked PhD program sets the standard for graduate economics training across the country. Graduate students work closely with our world-class faculty to develop their own research and prepare to make impactful contributions to the field.

Our doctoral program enrolls 20-24 full-time students each year and students complete their degree in five to six years. Students undertake core coursework in microeconomic theory, macroeconomics, and econometrics, and are expected to complete two major and two minor fields in economics. Beyond the classroom, doctoral students work in close collaboration with faculty to develop their research capabilities, gaining hands-on experience in both theoretical and empirical projects.

How to apply

Students are admitted to the program once per year for entry in the fall. The online application opens on September 15 and closes on December 15.

Meet our students

Our PhD graduates go on to teach in leading economics departments, business schools, and schools of public policy, or pursue influential careers with organizations and businesses around the world. 

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The Financial Economics PhD program is a joint degree offered through the Finance Department at the Kellogg School of Management and the Economics Department at the Weinberg College of Arts and Sciences. 

Students within Financial Economics will have access to a broad array of faculty across a variety of disciplines within economics, tapping into the interdisciplinary strengths found within our Finance-Economics curriculum. Additionally, this program benefits by location – our Economics department, PhD students, and research faculty are conveniently located within our new building, the Global Hub, just one floor down from the Finance department.

Some of the most active areas of current research are at the intersection of economics and finance. The aim of the Financial Economics program is to leverage the close ties and common research interests of the Economics Department and the Finance Department at Northwestern to train PhD students interested in these interdisciplinary areas. Students are required to do coursework in multiple fields in economics and finance, and are exposed to the most up-to-date models and methods in these fields. Faculty members from both departments supervise students as they develop their own research projects. PhD students also benefit from close collaborations with students in both departments, and participate in weekly seminar series that draw faculty and PhD students together for scholarly discussions across common research areas, including finance, macroeconomics, industrial organization, development economics, economic theory, and more. The program aims to produce scholars who can be successful in both economics and finance departments. 

Active Research Areas : The study of finance aligns with numerous areas within economics: macroeconomics, public finance, econometrics, household finance, economic development and economic history. This is why broad training in economics is essential for those who wish to do innovative work that straddles both finance and economics. Some examples include the financing and investment decisions of firms, households and governments; the interplay between asset prices, capital markets and the macro-economy; and the role and limitations of financial institutions in facilitating access to credit.  

Financial Economics PhD students will collaborate with world-renown scholars within our Finance and Economics departments. They include elected fellows of the American Academy of Arts and Sciences, the Econometric Society, the Society for Financial Econometrics, and the National Bureau of Economic Research. They serve/served as directors of the American Finance Association and past-presidents of the Econometric Society and Western Finance Association. Several faculty serve/served in editorial positions at leading journals, such as the American Economic Review , Econometrica , Journal of Economic Theory , Journal of Finance and RAND Journal of Economics . Recent publications within top economics and finance journals include American Economic Review , Econometrica , Journal of Finance , Journal of Financial Economics, Journal of Political Economy, Review of Economic Studies, and Quarterly Journal of Economics.

What We Are Looking for in Applicants

We seek students with strong training in mathematics and statistics and a solid background in economics, either through prior study or through work and research experience. Recommended coursework at an advanced level includes calculus, linear algebra, optimization, probability and statistics . Prior research experience is not required.

There are two points of entry into the Financial Economics program: as a new graduate student to Northwestern or as a transfer student from either the Economics or Finance PhD programs.

• New Graduate Student to Northwestern – Applicants submit one application to the Financial Economics PhD Program that is reviewed by both Finance and Economics faculty, who then render a joint admission decision. Students enter the program as a first-year PhD student. 
• Transfer Student – Economics or Finance PhD students who are completing their first year of study and have satisfied all the requirements within Economics may apply for a transfer by contacting the Director of Graduate Study in the program they are currently enrolled in. Applications must be approved by both the Economics and the Finance admissions committees. If the application is approved, the student will initiate a degree transfer request to The Graduate School.

Program Requirements

Coursework In years one and two, students take three or four courses each quarter (fall, winter, spring). The first-year students complete the three core sequences in Microeconomics, Macroeconomics and Econometrics. In year two, students enroll in a minimum of nine approved courses including at least two courses from the sequence in asset pricing, at least two course in corporate finance, two economics field sequence of at least two quarters each, and at least one course in economic history. Students must maintain a minimum 3.0 grade point average (GPA).

Qualifying Exam At the end of year one, students are required to establish competence in the three cores areas of study: Microeconomics, Macroeconomics, and Econometrics. This competence is satisfied by achieving a 3.0 GPA in each of the three-courses sequences.

During the summer following the student’s second year of study, students must pass a comprehensive qualifying exam designed to measure competence in both asset pricing and corporate finance or they demonstrate competence by maintaining a 3.6 GPA average across both course sequences.

Candidacy As students transition from coursework to research, they are required to write an original research paper in the summer of their second year supervised by a faculty advisor. Students present their completed research project to the faculty of the joint program in September following the summer quarter of their second year. At that time, their performance is reviewed by the faculty of the joint program, and upon successfully completing their coursework, passing of their qualifying exam and second-year paper, students are admitted to candidacy.

Third-Year Paper A second paper is typically completed by winter quarter of the third year and presented during the Economics 501 seminar of spring quarter of the third year. The research paper has to be sufficiently advanced to be part of the student's dissertation.

Research, Proposal & Dissertation The main activity in years three and four is research toward a thesis of publishable quality, under the direction of one or more faculty advisors.  A thesis proposal must be presented to the faculty committee no later than the end of the fall quarter of their fourth year of study. In their final year in the program, each candidate must complete a dissertation demonstrating original and significant research and must pass a final oral examination (“defense”) on the dissertation.

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Admissions comparison -- PhD Finance vs. PhD Economics

By rcwlhk June 4, 2008 in PhD in Business

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I would really appreciate any input on this topic!

What do you think are the key differences and similarities between admissions in a top tier PhD Finance program vs. a top tier PhD Economics program?

Perhaps I can start by making the following observations:

(1) Clearly, there are close similarities between the core courses between a PhD Finance student and a PhD Economics student. I believe both need to go through the entire micro, macro and metrics sequence.

(2) PhD Finance programs appear to be more competitive. But I would like to add a slight caveat --- while on absolute numbers basis, it does seem so (i.e. 3 - 5 admits per school). But please do correct me if I'm wrong, but it seems the number of applicants to PhD Finance programs are also smaller than that of Economics.

An example (I know there are more schools out there but I just picked one as an illustration. Feel free to give further examples or counter-examples!)

Northwestern Kellogg PhD Finance: 8 Admitted; 196 Applied; 4.08% Yield

Northwestern PhD Economics: 18 - 25 Admitted; 600 Applied; 3.00% - 4.17% Yield

So, it seems that at least for Northwestern, I don't see a significant difference between the yield (admitted / applied ratio) of PhD Finance and PhD Economics programs.

So, in such cases, do absolute numbers matter more than the ratios?

(3) Just going through the profiles of PhD Finance and PhD Economics students, I've noticed the following trends (please correct me if I'm wrong):

-There's a higher proportion of Economics students with Masters degrees and/or previous academic experiences (i.e. research assistant, publication, etc) than their Finance counter parts

-There are many more Math majors going into Economics programs than Finance

-Very few individuals going into Finance programs had a Finance / Business undergraduate training; but a good number of them have MBA's

-Most of those who are admitted to Finance programs had some form of industry work experience (typically in investment banks, consulting firms, hedge funds, etc)

-The strongest observation that I've made is that, it seems there are a plethora of examples of individuals at top tier Finance programs with significant work experience (i.e. 5 years or more) and did not have a math / hard science undergrad / master background. This leads me to wonder --- how many of these admitted individuals have real analysis (which appears to be VERY IMPORTANT in the TM Econ forum), graduate level econ / math / finance courses, and top Finance / Econ professors writing LOR's for them?

That's the end of my observations.

Please do share your opinions and thoughts!

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I am starting my doctoral studies in Finance this fall. I'll attempt to share all my observations and thoughts based upon your questions.

  (1) Clearly, there are close similarities between the core courses between a PhD Finance student and a PhD Economics student. I believe both need to go through the entire micro, macro and metrics sequence.

I don't know about top tier programs but for the following tier, you take micro,macro and metrics sequence relying on your concentrations. Some guys might not necessarily take micro and macro courses. For example, if you have already taken these courses in intermediate level in undergraduate or masters level, you might not take them. Even more to exemplify, most students with Economics courses does not take these courses.

(2) PhD Finance programs appear to be more competitive. But I would like to add a slight caveat --- while on absolute numbers basis, it does seem so (i.e. 3 - 5 admits per school). But please do correct me if I'm wrong, but it seems the number of applicants to PhD Finance programs are also smaller than that of Economics.   An example (I know there are more schools out there but I just picked one as an illustration. Feel free to give further examples or counter-examples!) Northwestern Kellogg PhD Finance: 8 Admitted; 196 Applied; 4.08% Yield Northwestern PhD Economics: 18 - 25 Admitted; 600 Applied; 3.00% - 4.17% Yield   So, it seems that at least for Northwestern, I don't see a significant difference between the yield (admitted / applied ratio) of PhD Finance and PhD Economics programs.   So, in such cases, do absolute numbers matter more than the ratios?

I partly agree and partly disagree with your opinion. The portion that I agree with you is, - no doubt on that- , business schools admit only small numbers per specialization whereas economics departments have more crowded incoming classes. The part that I don't agree with you is that I think PhD Finance programs have more number of applicants and since these programs give full and generous funding and provide better opportunities and options after graduation, these programs are much more competitive. On another perspective, people apply to economics because they think that they are more likely to receive admission letter from econ. departments. Don't be so bothered with numbers. Decide which one you are more interested in.

(3) Just going through the profiles of PhD Finance and PhD Economics students, I've noticed the following trends (please correct me if I'm wrong): -There's a higher proportion of Economics students with Masters degrees and/or previous academic experiences (i.e. research assistant, publication, etc) than their Finance counter parts   -There are many more Math majors going into Economics programs than Finance   -Very few individuals going into Finance programs had a Finance / Business undergraduate training; but a good number of them have MBA's   -Most of those who are admitted to Finance programs had some form of industry work experience (typically in investment banks, consulting firms, hedge funds, etc)   -The strongest observation that I've made is that, it seems there are a plethora of examples of individuals at top tier Finance programs with significant work experience (i.e. 5 years or more) and did not have a math / hard science undergrad / master background. This leads me to wonder --- how many of these admitted individuals have real analysis (which appears to be VERY IMPORTANT in the TM Econ forum), graduate level econ / math / finance courses, and top Finance / Econ professors writing LOR's for them?   That's the end of my observations.

I have been directly admitted to PhD. Finance from undergraduate. I might be an exceptional example but I already with some guys in the same situation. However, most of the guys, who were planning to go for PhD Finance, had some graduate degrees and extensive work experience somehow. Most of them were above their mid twenties.

Hope this helps!

Thanks for the detailed insight --- especially from a PhD Finance student-to-be!

(1) I wasn't aware that in PhD Finance, there's some flexibility in regards to the economics courses that one is required to take. But that's interesting info!

(2) I don't want to be argumentative or defensive (as I really do appreciate all of your inputs), but I still cannot find the concrete quant data to support that PhD Finance is MUCH MORE competitive than their PhD Economics counterparts.

I'm just adding more data points here (and again, by no means exhaustive):

Figures shown below as: Admits (or enrolled, whatever is available) / Applicants (% Ratio)

Finance: 4 / 75 (5.3%)

Economics: 23 / 178 (12.9%)

http://www.biz.uiowa.edu/phd/Fall07AdmResults.html

Finance: 4 - 6 / 300 (1.3% - 2.0%)

Economics: 30 - 40 / 1000 (3.0% - 4.0%)

NYU > Economics > Graduate Program > Ph.D. Programs > Bulletin

That's all I can find in my 15 min search. But so far, I'd venture to say that it is inconclusive. (But Iowa was definitely very interesting). As well, and I think this has been noted before, very few schools give detailed breakdowns of their business school admits and so, the Finance admit-to-application figures are incredibly difficult to find.

(3) I don't think you touched on this before but would you please comment further? That is, the typical math aptitude of PhD Finance admits. I still can't think of a very good reason to explain why or how some of these people with many years of work experience + a non-math / hard science background can get pass the "math requirements" of the PhD Finance program. Does this hint to the notion that the process is indeed more "random" than PhD Economics? Or perhaps I'm just thinking in a totally different direction.

I also do recognize that the math requirements in corporate finance and asset pricing are vastly different; namely, less math (relatively speaking) in corporate finance and more math in asset pricing (especially theoretical material).

@ Iowa Finance: 4 / 75 (5.3%) Economics: 23 / 178 (12.9%) http://www.biz.uiowa.edu/phd/Fall07AdmResults.html   NYU Finance: 4 - 6 / 300 (1.3% - 2.0%) Economics: 30 - 40 / 1000 (3.0% - 4.0%) PhD NYU > Economics > Graduate Program > Ph.D. Programs > Bulletin  

Arizona University, Tucson also says that they receive about 40-50 applications annually, and only admit 2 to 4 of them (Finance PhD). The pattern is similar in most schools: Fewer applications in Finance but the chance of enrollment is more slim in Finance then it is in Economics. I explained the reasons elaborately in my post forehead.

(3) I don't think you touched on this before but would you please comment further? That is, the typical math aptitude of PhD Finance admits. I still can't think of a very good reason to explain why or how some of these people with many years of work experience + a non-math / hard science background can get pass the "math requirements" of the PhD Finance program. Does this hint to the notion that the process is indeed more "random" than PhD Economics? Or perhaps I'm just thinking in a totally different direction.   I also do recognize that the math requirements in corporate finance and asset pricing are vastly different; namely, less math (relatively speaking) in corporate finance and more math in asset pricing (especially theoretical material).

I think schools prefer guys with quantitative analysis. Let's think of an investment banker, or someone who has extensive quantitative skills. And assume that this guy has a masters in Mathematical Finance. This guys knows how the financial sector works, and he is experienced. Excellent choice!! But I don't know about the guys with hard science are enrolled in Finance PhD program. They might have convincing letters of recommendation and a fantastic SOP to convince the faculty about that. Do you imagine a finance faculty, which is interested in enrolling and FUNDING students with no math background. Finance requires some math background, at least at calculus level. I still doubt about guys just enrolled with basic calculus. It is very hard to sustain in Finance PhD without strong quantitative skills. I see the issue as nearly impossible, in my personal judgment.

For my case, I don't have much work experience, just some intern in accounting field, but I am still an undergraduate that has taken Calculus, Mathematical Economics, Statistics, Mathematical Statistics, Econometrics, Applied Econometrics. We can say that I am familiar with Math :) The fact is that you forget math when you do not use it for years.

Hi all,   I would really appreciate any input on this topic!

I'm just coming to the end of my first year in a phd finance program, so here's what I've learned so far....

The % admittance to finance vs top econ schools is similar but there's a huge difference in level. Finance programs are much much smaller. That means even if you're really well qualified for a finance program, it is still very likely to get rejected. If you go that route, apply to a lot of schools. I did about 12 & that almost wasn't enough! Once you're in though, they want you to succeed too.

Econ departments have less of a random factor in the admittance part - they figure once you're in they'll see if they like you and if not cut you out in the first couple of years. Once you're in, you also need to do better than other students to stay in.

Depends on the program, but in mine the first year is basically the same as for first year econ students. They have to do macro in the 1st year, whereas it is an elective for us in the 2nd year & we have some finance seminar courses instead, but pretty much if I & an econ student planned our electives right, we could end up both doing exactly the same courses.

(2) PhD Finance programs appear to be more competitive.

The problem is the randomness of the process. To get into finance you need to be good + be very lucky, or apply to a much large number of schools to have a good shot at getting in somewhere.

Business schools are more likely to value some pertinent non-academic work experience on the whole, particularly if it gives you inside knowledge of some area of industry. As far as math ability, in econometrics classes, the finance students tended to usually be towards the top of the distribution in such exams. Econ seems fine with a good knowledge of calculus, maybe some ode's for macro, linear algebra & analysis. If the finance program specializes in asset pricing, they'll probably also be looking for more of the wacky math at admittance - other kinds of analysis, stochastic calc. pde's etc as well.

This leads me to wonder --- how many of these admitted individuals have real analysis (which appears to be VERY IMPORTANT in the TM Econ forum), graduate level econ / math / finance courses, and top Finance / Econ professors writing LOR's for them?

Yes, yes & no in that order at least for me! For other data, I had 3 years of academic research + several years banking industry experience.

That's some very good insight! Thanks a lot!

I'm just coming to the end of my first year in a phd finance program, so here's what I've learned so far....       The % admittance to finance vs top econ schools is similar but there's a huge difference in level. Finance programs are much much smaller. That means even if you're really well qualified for a finance program, it is still very likely to get rejected. If you go that route, apply to a lot of schools. I did about 12 & that almost wasn't enough! Once you're in though, they want you to succeed too.   Econ departments have less of a random factor in the admittance part - they figure once you're in they'll see if they like you and if not cut you out in the first couple of years. Once you're in, you also need to do better than other students to stay in.       Depends on the program, but in mine the first year is basically the same as for first year econ students. They have to do macro in the 1st year, whereas it is an elective for us in the 2nd year & we have some finance seminar courses instead, but pretty much if I & an econ student planned our electives right, we could end up both doing exactly the same courses.     The problem is the randomness of the process. To get into finance you need to be good + be very lucky, or apply to a much large number of schools to have a good shot at getting in somewhere.     Business schools are more likely to value some pertinent non-academic work experience on the whole, particularly if it gives you inside knowledge of some area of industry. As far as math ability, in econometrics classes, the finance students tended to usually be towards the top of the distribution in such exams. Econ seems fine with a good knowledge of calculus, maybe some ode's for macro, linear algebra & analysis. If the finance program specializes in asset pricing, they'll probably also be looking for more of the wacky math at admittance - other kinds of analysis, stochastic calc. pde's etc as well.       Yes, yes & no in that order at least for me! For other data, I had 3 years of academic research + several years banking industry experience.

Just another question popped into my mind and I hope you could share some insight on this!

With regards to the mathematic skills one needs to get admitted into PhD Finance vs. PhD Economics, what do you think are the key differences? I know you touched on this briefly on your previous post but I'm hoping you could expand on it.

And yes, I do realize that most programs' official prerequisites are just multivariable calculus, linear algebra, statistics and maybe real analysis. But "realistically speaking" (i.e. to have a realistic chance of getting in), what additional math skills do we need here? Specifically what are the differences and similarities for PhD Finance vs. PhD Economics? (i.e. Does Finance prefer candidates to have stochastic calculus whereas it may be not so important in Economics? Conversely, perhaps Economics prefer people to have greater skills in ODE than in Finance?) :grad:

Not knowing the mind of the admissions commitee, I can only venture a guess, but anything that sets you apart from the large stack of applications with very high quantitative scores is a good thing! It would depend somewhat on the program. If you're looking at departments that do theoretical asset pricing then a background in such things would tie in nicely. In general you're much more likely to end up actually using it in a finance program than in economics. For less theoretical or more corporate places, it's not nearly as likely to be a critical decision maker, but again, having something that makes you stand out would be the thing.

On the whole, differences between econ & finance department requirements are probably outweighed by differences due to departmental focus on such things as theory vs empirical focus, as well as idiosyncratic variations due to who comprises the admit commitee that year.

Probably if I had to do the application over again & had the time, I'd do a few extra statistical theory classes, pde's or linear analysis, more because they are useful than anything else. I'd also spend more time getting good LOR's and vet my SOP through more people that know what a phd program is like.

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Is an Economics PhD Worth It? The PhD Pay Premium

Read a summary or generate practice questions using the INOMICS AI tool

Economics students may often wonder if doing a PhD is the right move for them. After all, you can still get a good job in economics with just a Master’s degree. We’ve covered different angles of this topic before with helpful advice about what degree you’ll need as an economist , asking whether you should do a PhD , and even asking what kinds of economists are paid the most . Thanks to INOMICS Salary Report 2023 data, we can look more closely at the pay benefit for an economics PhD in today’s job market. This will help you decide if doing an economics PhD will be worth it for your own career.

Perhaps unsurprisingly, the typical PhD in economics earns more than the typical economist with “only” a Master’s degree. But how much more? Is doing an economics PhD program worth it in the long term?

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The short answer: yes. INOMICS Salary Report data shows that in 2023, economics PhDs earned on average 96% more than economists with a Master’s degree. These are worldwide statistics taken from the full breadth of the INOMICS Salary Survey data.

The benefit to doing a PhD in economics varies by region. Figure 1 compares the “earnings premium” that an economics PhD has over economists with a Master’s degree across the world, using 2023 INOMICS Salary Survey data.

Figure 1: Regional Premiums in economics PhD pay compared to a Master’s

Clearly, in most regions acquiring a PhD in economics offers quite the premium. Some results may stand out as surprising, however.

First, in North America in particular, the premium for earning a PhD in economics seems smaller than expected. If a PhD only earns an economist an extra 36% increase in wages, ignoring a PhD and continuing to work might seem like a preferred option in this high-wage region.

In the Caribbean, South & Central America and Africa, PhD earnings are below Master’s earnings. This unexpected result appears to be the case due to the distribution of survey respondents. In both regions, the amount of industry economist respondents is much larger than academic respondents, and Master’s-degree-holding economists outnumber PhD economists in Government, Central & International Bank, and private business roles. These three categories of employer tend to pay more highly than others. This suggests that in these two regions, acquiring a PhD may not be necessary to have a well-compensated industry career. Further, it seems more realistic for Master’s-degree-holding economists to attain high-paying roles in these sectors without a PhD, as opposed to many other regions where a PhD would be considered a requirement.

As the previous discussion just showed, Figure 1 doesn’t account for the different sectors that economists work in. In general, economists who work in industry tend to earn very high wages, while economists who work in academia earn noticeably less until they are finally promoted to a full Professor of Economics. Then, academic economist pay catches up to industry pay. This is a trend noted in multiple editions of the INOMICS Salary Report.

This is particularly true in North America, the highest-paying region on average. Economists working in industry can earn high wages with only a Master’s degree. This is also true of Western Europe & Scandinavia and East Asia & Australasia, the second and third highest-paying regions identified by the Report.

Some other regions of the world feature much more of a premium for PhD economists. Part of the reason for this is clear. Since high-paying regions like Western Europe and Australasia pay higher salaries to begin with due to the higher cost of living, a high pay increase in these regions represents a lower percentage of overall pay.

This fact is supported by the graph; North America is the highest-paying region and features the lowest positive percentage increase in pay for PhDs. Western Europe, which pays the second most on average, features a slightly higher percentage increase. Readers should make no mistake; a 35.6% increase from a base salary of $100,833 (the average Master’s degree economist salary in North America) is a massive increase in pay. Comparably, the almost 120% increase in pay in the Middle East, Central Asia & North Africa region is an increase from an average Master’s degree salary of $17,321 to almost $40,000. In percentage terms, this is obviously enormous, but in cash terms less than the difference in North America.

Additionally, however, the high percentage premium for PhD economists in lower-paying regions may suggest that in these regions (i.e., South Asia, Middle East) there are more opportunities for economists without a PhD to find meaningful employment, so fewer individuals elect to study for a PhD. If this is true, those who do complete a PhD enjoy a high pay premium over their economist peers since economics PhDs are more rare in those regions.

Academic economists need a PhD

Economics students should keep in mind that academic jobs will almost certainly require a PhD in economics. Economics students interested in a career in academia should therefore be strongly encouraged to pursue an economics PhD, regardless of differences in pay. The following Figure 2 shows the pay premium for economists employed at universities, by region:

Figure 2: Regional Premiums in economics PhD pay compared to a Master’s (Academic only)

The pay premiums for economics PhDs tells the story quite clearly: across the board, in every world region, economics PhDs in academia earn much more than their counterparts without a PhD.

Readers might note that this graph is likely skewed because economics PhDs are probably more senior economists than economists without a PhD in academic settings, and likely hold higher-level positions; but this skewness supports the point. Economists interested in a serious career in academia must strongly consider getting a PhD, or have a specific reason to not need one. It is very difficult to earn a Professor of Economics position without a PhD in most of the world. Figure 3 below provides evidence to support this point.

Figure 3: % of Master’s degree economists in Professor roles by region

Figure 3 shows very clearly that burgeoning economists should expect to earn a PhD if they wish to work as a Professor of Economics in the future. Every world region has very few Professors with just a Master’s degree. Even in South Asia, which has by far the largest representation for Professors with a Master’s degree in our data, only 20% of Professors have a Master’s while 80% have a PhD.

Industry economist roles

It’s clear that academic economists usually need a PhD, but this isn’t necessarily the case in industry. However, readers may be curious to repeat the above breakdowns in industry roles, which can be instructive. Figure 4 thus shows the pay premium for PhD economists in industry roles by region:

Figure 4: Regional Premiums in economics PhD pay compared to a Master’s (Industry only)

Figure 4 shows that PhD economists out-earn Master’s-holding economists in industry jobs by a substantial amount in most regions. The lower industry PhD economist pay compared to Master’s degree economists was already discussed above for Africa and the Caribbean. In summary, Master’s degree holding economists outnumber PhD economists in Government, Central & International Bank, and private business roles in these two regions. Since these three categories of employer tend to pay more highly than others, it may slightly skew the graph in favor of Master’s degree holders. However, this suggests that in these two regions, acquiring a PhD may not be necessary to have a well-compensated industry career.

In North America, part of the reason for a lower than expected premium is likely the fact that in this high-paying region, high base salaries mean that salary increases will be lower percentage-wise. This was discussed above as well. Average years of experience are quite comparable for industry economists in North America (about 12 for Master’s degree holders and 15 for PhD holders), and the employer distribution is relatively balanced.

Figure 4 suggests that industry economists with a Master’s degree in North America ought to consider their career path and whether a PhD is right for them before going back to school. A PhD opens up some employment opportunities in the private sector that aren’t available to Master’s degree holders, and will increase pay, but whether or not that is necessary or desired is likely up to the individual.

Keep in mind that specific non-academic employers – especially governments, central banks like the Federal Reserve, institutions seeking economics researchers, NGOs like the World Bank, and even increasingly consulting firms – are likely to require an econ PhD for some higher-level positions. Be sure to check job listings for economics jobs that you’re interested in to see if a PhD might help you reach them in your career.

Comparing previous years: PhD earnings on the rise again

Using past years of INOMICS survey data, we can examine how the benefit to doing an economics PhD has changed over time. It appears that the premium in pay that economics PhDs enjoy is recovering after a slight dip during the pandemic years. See below Figure 5 below:

Figure 5: How much more PhD economists earn vs. Master’s economists by year, INOMICS data

Figure 5 shows that earnings for economics PhDs are once again rising relative to pay for economists without a PhD. It’s worth noting that pay for economists with both degree types has increased this year. According to the latest INOMICS Salary Report, economists with a Master’s as their highest degree experienced a 3.2% increase in pay on average since 2022, while those with a PhD have experienced a 35.9% increase. This has widened the earnings premium between the two categories from 80% in 2022 to 91% in 2023.

The dip in pay that economists experienced in 2022 may be partially due to the COVID-19 pandemic. And PhD pay is not the only factor that appears to be improving since COVID. The post-pandemic recovery of the economics jobs market has already been discussed by INOMICS, showing that earnings for economists with Master’s and Bachelor’s degrees recovered sharply after the first waves of the pandemic.

So, is doing a PhD in economics right for you? According to the data, in most cases it will be. However, you must weigh the tradeoffs yourself. You may not need a PhD to have a fulfilling career in economics, particularly if you plan to work in a non-governmental and non-central bank role in industry, and particularly in certain countries and regions.

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PhD in Economics and Finance

PhD Program Director Prof. Mariano Massimiliano Croce    

  PhD Administrative Assistant Angela Baldassarre  

Paolo Surico 2009 PhD Graduate Professor  of Economics, London Business School "Very engaged and committed faculty, caring and stimulating peers. The PhD in Economics and Finance at Bocconi University strikes the right balance between rigorous theoretical analyses, state of the art empirical tools and insightful policy applications. I found this research mix extremely useful for my career, both at policy institutions and in academia". Andrea Tamoni 2012 PhD Graduate Assistant Professor of Finance, The London School of Economics and Political Science "Bocconi has instilled in me a deep fascination for finance thanks to continuous interaction with tremendous scholars. The finance faculty is devoted to pushing students beyond their limits with the sheer number of research opportunities available. In all, Bocconi provides a unique opportunity for your development as a leading scholar in the field of financial economics".   

Michela Carlana 2018 PhD Graduate Assistant Professor of Public Policy, Harvard Kennedy School "The PhD in Economics and Finance at Bocconi is a unique opportunity to get exposed to cutting-edge research in economics, inspiring mentors, and solid training. It has sharpened my economic thinking and acted as a springboard for my career in academia. I will never forget my time at Bocconi and I am forever grateful for the opportunities I was given there".

Welcome to Bocconi PhD in Economics and Finance .    

We designed our program for highly qualified and motivated students who wish to acquire world-class research skills and pursue academic careers in economics, finance, and accounting.

The program is multidisciplinary in nature and features  three tracks (curricula): Economics, Finance, and Accounting  – linked by a common core.

The program comprises two year of structured course work followed by guided transition into research . Bocconi places high weight on advising, mentoring and supporting students throughout their studies, and especially in preparation for the international job market.

Our PhD classes benefit from the interaction among students from all over the world, with backgrounds not only in economics, finance and accounting, but also other quantitative disciplines such as engineering, mathematics, physics and statistics.

Faculty members are highly performing in terms of international publications and are active members of the international community. They publish in or serve on the editorial boards of leading research journals, such as American Economic Review, Econometrica, Journal of Econometrics, Journal of Economic Theory, Journal of Finance, Journal of Monetary Economics, Journal of Political Economy, Mathematical Finance, Quarterly Journal of Economics, Review of Economic Studies, The Accounting Review, Review of Accounting Studies, European Accounting Review and many others. Faculty members have been and currently are the recipients of prestigious competitive grants (e.g., by the European Research Council and the National Science Foundation in the United States).

The PhD program is designed to prepare and foster an academic career on the international job market. Other career opportunities include central banks, governments and international organizations. In recent years, our students have been hired by prestigious schools and organizations such as:   

• University of Alicante
• Boston University
• University of Bristol
• Copenhagen Business School
• Harvard University Kennedy School of Government
• Harvard School of Public Health
• Higher School of Economics, Moskow
• London Business School
• London School of Economics
• Toulouse School of Economics
• Queen Mary University
• Xiamen University
• Bank of England
• Bank of Italy
• National Bank of New Zealand

Following the links on the left-hand side of this page, you will be able to access full info on the program. Find out more on how to apply and the admissions process .   

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PhD in Economics At a Glance

• 45 credit hours of course work, completed in as little as 2.5 years.
• Study diverse theoretical perspectives, including post-Keynesian, intuitionalist, evolutionary, and feminist economics.
• Tailor your field coursework to best match your research interests.
• Designated as a STEM degree program 
• Program Director: Professor Nathan Larson .

Tailor Your Degree to Your Research Interests

Offering a combination of rigorous technical training and a focus on policy-relevant research, our PhD in Economics will prepare you for careers in academics, research, and government. Our students master economic theory, statistical methods, and applied field knowledge. Then, through the dissertation-writing process, they develop the ability to formulate and empirically answer economic questions.  

• Diverse Perspectives : In addition to a strong foundation in macro and micro theory and econometrics, students learn a more diverse perspective on economics through required courses in economic thought and economic history, as well as optional courses in heterodox theoretical models of economics, including post-Keynesian, intuitionalist, evolutionary, and feminist economics.
• Flexibility : Students choose four applied field courses that best fit their research interests. The department offers a wide selection of concentrations, including courses in development, gender, international, labor, macro/monetary, and other applied micro topics.
• Preparation : Students must successfully pass one comprehensive exam at the end of their first year and produce a journal-quality research paper by the end of their third year. The third-year paper typically serves as a key component of the dissertation, giving students an advanced start on the dissertation writing process.

See complete Admissions and Program Requirements .

Faculty Dedicated to Your Success

At AU, you will take classes from and work with a diverse group of esteemed economists and highly cited scholars who are engaged with practitioners and policymakers around the world. Their wide-ranging research and publications , along with the variety of methodological approaches they use, create a rich environment for innovations in theory and empirical studies. 

Our research centers, including the Program on Gender Analysis in Economics and Infometrics Institute , host guest scholars and research projects, further enhancing the opportunities for graduate students. By working as research assistants and teaching assistants, PhD students gain valuable experience and mentorship in an academic setting.  

Throughout their third year and into the fourth, students work closely with a faculty member of their choosing on their third-year paper and dissertation proposal, eventually adding other experts to their dissertation committee to gain additional insights and expertise. Through this process, students develop lasting collegial, and productive relationships with faculty, classmates and economists at DC-area institutions, often co-authoring and publishing.  

Launch Your Career Amongst Top Economists 

The Washington metropolitan area employs over one-third of all economists in the country. The array of intellectual and professional opportunities offered by the nation's capital make American University the ideal place to study economics. The department's strategic partnerships and our faculty's relationships with nearby institutions will help you make the best use of those opportunities.

Internship and employment opportunities:

• The World Bank 
• International Monetary Fund
• Research institutes
• Think Tanks and NGOs
• US Treasury, Labor, and Commerce Departments 

Economics PhD graduates are well qualified for careers in academia, government agencies, and international organizations. Our students receive career mentorship and placement services that lead to careers in public policy, academia, and government, both domestically and abroad.

Many of our graduates go on to academic posts at universities such as the Saint Louis University, the University of Vermont, University of Wisconsin-La Crosse, and Franklin College. Domestically, graduates have served in congress and government agencies, including the Bureau of Economic Analysis, the Department of Commerce, and the Department of Labor. Our alumni working outside of the US have founded research institutions and consulted for major organizations such as CGIAR-CIP and the United Nations. 

Read more career information about AU economics alumni.

See the 2017-8 list of job market candidates .

News & Notes

See abstracts from the 2024  Third Year Paper Conference .

Research Seminar Series Wednesdays at noon.

• PhD candidate Amy Burnett Cross received an EHA Dissertation Fellowship from the EHA Committee on Research in Economic History
• PhD student Danielle Wilson was awarded an Economic History Association grant for archival research on Mexican Railroads.
• PhD student Aina Puig's short essay, " The Unequal Effect of Interest Rates by Race, Gender, " was published in the San Francisco Fed's Economic Letter.
• Professor Bernhard Gunter and PhD students Bong Sun Seo & Farah Tasneem were awarded the  International Award for Excellence for their article on the change in labor force participation rates during periods of globalization and marginalization. 

Student Spotlights

More about Aina

San Francisco Federal Reserve Board’s essay contest  called for papers studying economic impacts of gender and racial inequalities. As a winner, Aina’s paper will be published in the Federal Reserve Board’s Economic Letter and will have the opportunity to participate in a 6-week summer research program.

Aina’s paper focused on the impact of monetary policy, through interest rates, on spending patterns among types of U.S. households—those with mortgages, those with women versus men as head of household, and those headed by White versus Black people. By building on her interest in macroeconomic inequality topics with direct policy implications, she intended (and continues to intend) to fill a gap in the literature, adding to the income inequality narrative by bringing gender and racial inequalities to the forefront of discussion.

Through this project, she was able to not only establish the impact of monetary policy shocks on consumption patterns, but also inform the Federal Reserve Board of these distributional impacts. When discussing her research, Aina states that “promoting equal opportunity and understanding the different impacts of policies can help policymakers create policies that promote economic growth while benefitting all groups’ well-being in society.”

Her interest in analyzing inequality topics through lens of distributional effects of macroeconomic policies came to life during her research for this paper and “ties directly into [her] plans for [her] dissertation…, a good starting point for [her] future research.”

Vasudeva Ramaswamy

More about Vasudeva

Economics PhD candidate Vasudeva Ramaswamy credits American University with helping him zero in on his area of research interest and for equipping him with the tools to explore and contribute to his field. 

During his time at AU, Vasu spent two summers working with the World Bank, studying the impact of agricultural aggregators in East Africa — specifically, how they provided income and security to farmer communities. 

Vasu’s dissertation considers the effects of the Federal Reserve Bank’s actions on household inequality. Who gains and who loses when the Fed increases (or decreases) interest rates? And how do these effects propagate through the economy? Because business income and profits play a key role in household inequality, Vasu looks at how businesses respond to the actions of the Fed. 

After he earns his PhD, Vasu says he would love to be able to continue researching the importance of economic heterogeneity in monetary policy transmission. “I am particularly grateful for AU’s faculty, who are leading experts in their field and approachable and encouraging as mentors,” he adds. “I am equally grateful for the rest of my PhD cohort, who are a brilliant and motivated group. I am learning from them continually.”

Elissa Cohen

More about Elissa

Economics PhD candidate Elissa Cohen received an NSF grant to pursue her research about assumptions people make about risk and, building off an idea from a previous project, Elissa continues her interest in the Value of Statistical Life in this one to question the validity of how VSL is used and estimated. In doing so, she contributes to development of a more complete theory of how perceptions of risk guide decision making.

Elissa asks three questions: (1) Is the construct validity of the VSL consistent across measurement approaches? (2) Do people value the mitigation of varying types of fatality risk differently across domains? (3) Do people accurately comprehend the probability of death in a given setting?

To answer these questions, Elissa uses discrete choice experimental (DCE) designs, self-report surveys, and machine learning techniques to evaluate the validity of the VSL as an assessment how people’s risk assessment shapes behavior.

This research improves the understanding of how people perceive fatality risk across domains and how perceptions impact choices about risk exposure. With this research comes the potential to reshape how regulatory agencies construct their aggregated VSL estimates for future cost-benefit analyses, influencing policy decisions and allocation of scarce federal resources.

As she thinks about impact and the research space she can contribute to and develop, Elissa comments, “AU has definitely helped me refine the types of questions I am interested in answering…. I see myself continuing to explore and test feedback loops between emergent human behaviors and macro-level policy decision-making.”

Amy Burnett Cross

More about Amy

Amy Burnett Cross has been selected as one of the three NBER Pre-Doctoral Fellows in the Gender in the Economy program to support her dissertation research on the influence of military policy on the sorting of women into occupations. Through this research, she is able to include her knowledge from AU’s Program on Gender Analysis in Economics as well as her understanding that by bringing more insight from conservative institutions into her research realm, she could enhance the policy space of gender equity.

As she continues her career, Amy desires to conduct research that is directly applicable to policymakers, and through her research on this project, Amy has the chance to do this in addition to engaging with economic history and begin to invest more time in the historical arc of military policy and gender dynamics.

She has three focuses for her dissertation project: (1) evaluate the impact of lifting the ban on women in combat (in 2013) on civilian occupational desegregation; (2) measure the extent to which gender desegregation of the Army (in 1977) signaled a shift in the appropriate role of civilian women at work; and (3) assess whether the structure of the U.S. draft in WWI (in 1917) contributed to the development of the male breadwinner norm.

Amy’s work aims to provide evidence that policy changes can influence social norms constraining women’s work and occupational segregation, particularly in discovering how policies regarding women’s participation in the military go on to influence gender gaps in civilian labor market outcomes. In doing so, Amy also seeks to contribute to the research of information asymmetry as a cause for occupational segregation—does military gender desegregation function as a reduction of information asymmetry?

With the support and accommodation of her peers, professors, and advisor, Mary E. Hansen, Amy has been able to focus on her academic excellence and develop close friendships and bonds during her journey at AU. In discussing her work in gender economics and the community at American University, Amy offered, “AU attracts women economists and I have found some truly excellent ones here.”

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