Economics Overview

     Economics is the social science that studies the basic problems of resource allocation facing our society. The subject traces its modern roots to the 1776 publication of The Wealth of Nations by the Scottish moral philosopher Adam Smith. The discipline is divided into macroeconomics and microeconomics.

     Macroeconomics is the field that studies the causes of economic growth, inflation, and unemployment in a global economy. It uses models that explain the interaction of business firms, consumers, and institutions to determine the output, price level, and employment in a nation.

     Microeconomics is the field that studies the choices of individual economic units. It analyzes how consumers choose between work and leisure, consumption and saving, and how they decide which products and services to purchase. It also examines how firms choose production and workforce levels, and how consumers and producers interact in the market to determine prices of goods and services. 

     Some of the areas of specialization within economics include labor markets, industrial organization, urban systems, mathematical economics, international trade and finance, history of economic thought, monetary systems, public finance, econometrics, and comparative economic systems. Economics is the only social science for which a Nobel Prize is awarded.

Mission and Vision

     The mission of the Department of Economics is to provide economic education to the Louisville region, the state of Kentucky, and globally.

     The Department of Economics will fulfill its mission by:

• Conducting quality research that leads to publications in academic outlets.
• Providing a thorough and meaningful education in economics to undergraduate students of the University – both those with majors in the Department as well as those from other programs.
• Advancing the knowledge and skills of students in the College of Business graduate programs and from other graduate programs of the University by providing rigorous and meaningful economics courses in these programs.
• Promoting the understanding of the economy by conducting applied economic analysis for industry, non-profit institutions, and government.
• Providing service to our constituents by giving talks, responding to inquiries, and responding through the popular press to economic issues.
• Providing service to the profession through reviewing journal articles and other scholarly work, conference participation, professional symposia, and extramural faculty reviews.