Contents:
 Against Better Judgment: Prequalification in Procurement Auctions by Jennifer Lamping 
 HIV/AIDS in India: "A Window of Hope"  by Piya Sorcar 
 U.S. Patent Reforms Needed to Spur Innovation, Global Competition
 The Worldwide Economics Department Network by Robert Mcnown 
 Frank S.T.Hsiao
             Four Decades of Outstanding Scholarship, Teaching, and Service 
 Faculty Notes
 Alumni Notes
 Graduates
 Awards
 Graduate Student Placement 
 Remembrance
 Donation Card
 Let Us Hear From You!

A Report from the Chair

Dear Alumni and Friends,

I send greetings on behalf of the CU-Boulder Department of Economics faculty and staff. In order to get the newsletter out before the arrival of the fall students, I am writing this mid-summer. Apart from the Shakespeare Festival and Freshman Orientation, campus is quiet and so I find this a good time to reflect on some of the many exciting things that happened in the department during the 2006– 2007 academic year. At the time of last year’s newsletter, we were preparing for our department’s 50th anniversary celebration. This event, held in October 2006, was very well attended with CU economics graduates, faculty, staff, and friends spanning over 50 years. Attendees were treated to great food, lively economics panel discussions, and special music and remembrances from Grammy Award winning musician and CU economics graduate Don Grusin. Stay tuned for future events that will bring together department graduates, faculty, staff, and friends.

Student News

The CU Department of Economics continues to extend its reach around the world. During the past academic year, over 300 undergraduate students received their BA in economics and 30 graduate students received either an MA or PhD in economics. Mid-December of 2006 ushered in a major blizzard just as finals were getting underway. While all non-essential staff were instructed to stay home due to blizzard conditions, finals proceeded as scheduled. In the midst of all the excitement of faculty sleeping in their offices to proctor their finals and Boulder grocery store shelves growing bare, the department graduation ceremony fell victim to cancellation. To make up for the disappointment of this cancellation, the department held a joint inter/spring graduation ceremony in the Glenn Miller Ballroom on May 10. Professor Curtis Eaton (BA ’65, PhD ’69) delivered the commencement address and a packed house cheered the graduates as they prepared for the next phase of their lives. This was the largest economics graduation celebration in the history of CU. As the profile and reach of our department expand, so do the opportunities for our graduates. Our BA graduates continue to land interesting jobs all over the world and gain acceptance into graduate and professional programs in the world’s finest universities. Our PhD graduates are increasingly receiving offers from research universities (see placement information in this newsletter), signaling that the value of CU economics graduate training is on the rise in the marketplace.

Faculty and Staff News

Professor James Markusen was named a university distinguished professor in recognition of his distinguished scholarship, exemplary teaching, and exceptional service. Professor Markusen is one of just 34 faculty to hold this title across all three University of Colorado campuses. Keith Maskus, our previous department chair and Stanford Calderwood Endowed Professor of Economics, is the new associate dean of social sciences in the College of Arts and Sciences. Kudos to Keith for his influential report, Reforming U.S. Patent Policy: Getting the Incentives Right, which was published by the Council on Foreign Relations. For more information, including a Washington Post editorial citing this report, see the News & Events section on our website (www.colorado.edu/economics). Upon returning from a year abroad as a Fulbright Scholar, Professor Robert McNown is the new director of the CU International Affairs Program. After 41 years as an economics professor at CU, Frank Hsiao retired at the end of May and he is now a professor emeritus (see article in this newsletter). Terra McKinnish was promoted to associate professor with tenure. In early 2007, Julia Perez retired from her position as graduate program coordinator and Patricia Holcomb joined us as the new graduate program coordinator in February.

The department successfully recruited three new assistant professors during the academic year, which is quite an accomplishment. This is the first time in my 12 years at CU that we have added a new faculty position, which is noteworthy because in that period, the number of undergraduate majors has increased from approximately 300 to over 900. Francisca Antman joins us in fall 2007 after completing her PhD at Stanford University. Professor Antman’s research lies at the intersection of development, labor, and public economics. In her dissertation research, Professor Antman applies economic theory and econometrics to explore the impact of U.S. migration on Mexican families. Professor Antman will teach development economics and labor economics during the 2007–2008 academic year. Martin Byford joins us in fall 2007 after finishing graduate work in economics at the University of Melbourne. Professor Byford is a microeconomic theorist with specific research interests in industrial organization and game theory. In his dissertation research, Byford translates theoretical models of non-transferrable utility coalition games into industrial organization problems including Bertand price setting games, spatial competition, and price competition in network environments. Professor Byford will teach microeconomic theory during the 2007–2008 academic year. Our third new hire is Professor Xiaodong Liu, who is joining us after completing his PhD at the Ohio State University. Professor Liu’s research develops econometric models of social interaction and spatial econometrics. Professor Liu will teach econometrics during the 2007–2008 academic year.

State of the Budget and Financial Support

For the short term, the financial picture for CU has improved relative to three or four years ago. Voters approved keeping tax dollars in the state budget that otherwise would have been returned to taxpayers under the Taxpayer Bill of Rights (TABOR). Some of these retained funds are being directed toward higher education, which has partially relieved campus budget pressures. However in the long run, we still face the reality that the state of Colorado does not support CU at levels enjoyed by our peer institutions such as the University of Texas or campuses in the University of California system. Growing departments like ours desperately need more faculty in the classroom while steadily increasing enrollments are creating a critical classroom shortage across the campus. This leads me to my final topic, your financial support.

The quality of public education at CU is highly dependent on the financial support of alumni, alumni families, and friends of the university. In all likelihood, this dependence will only intensify in the years to come. For this reason I ask you to support CU. While you can choose to support the university broadly, you can also direct your contributions to the Department of Economics. You will find giving information on page 11 of this newsletter. Your contributions help us maintain a competitive edge in education, research, and service.

Thank you.

Nicholas Flores