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Background and Controversy [ edit ]
Undergraduate and graduate studies have never had a more compelling and diverse body of offerings in economics. The top ten highest-ranked undergraduate economics programs in the U.S. include the University of Chicago, Yale, MIT, Stanford, and University of Michigan. [4] The highest-ranking graduate programs include Princeton, Cornell, Harvard, Columbia, and University of California-Berkeley. [4]
In the U.S., business schools have become dominated by corporate-sponsored departments that are perceived by many faculty members as socially and politically conservative. In turn, many faculty members feel that corporate-sponsored departments are not receptive to teaching in the areas of economic theory such as microeconomics, macroeconomics, and public economics. For example, according to the last annual report of the Association of Public Policy Analysis and Management, the A.P.P.A.M. “reported that only a small number of its 4,000 affiliated faculty members are in the business school.” [5] Public policy, therefore, has become at least somewhat of a black hole at many colleges and universities, where the pressures of “money, power, and other social concerns overwhelm the academy.” [6]
Philosophy-based faculty in economics departments believe that while corporate-sponsored departments ignore the microeconomics, macroeconomics, and public economics branches of economics, there is a fundamental difference between the kind of public policy analysis that goes on in corporate-sponsored departments versus the kind that occurs in public policy schools. Corporate-sponsored departments see public policy, especially when it involves social issues like labor and discrimination, as a business issue, whereas public policy schools see it as an issue of justice and fairness. [7]
The sixth edition of Understanding Economics has been the subject of an open letter [8] to the publisher from senior faculty of the University of Michigan. The letter says in part: “One reviewer was specifically directed by an APAM member to “back off” on his criticisms (and, he added, the APA Book Review Editor) because he works for one of the firms affiliated with APA. The case is the same with another reviewer. Another
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