Faculty Spotlight - Yun Pei

Why did you choose economics? Why did you choose your subfield?

YP: When I was taking an intro to economics class as an undergrad, I learned the concepts of utility maximization and tradeoffs. I was fascinated by this idea of finding the optimal allocation while considering both benefits and costs. This shaped my thinking at that time.

I became interested in macroeconomics in graduate school, because at that time (post financial crisis), there were a lot of debates about government macroeconomic policies. I became especially interested in fiscal policy, such as taxes, debt, unemployment insurance, etc.

What research are you working on right now?

YP: I am currently working on a project on economic policy uncertainty. It studies how economic policy uncertainty affects firms’ investment, borrowing, and costs of debt.

What was your favorite paper to write, and why?

YP: My favorite paper to write was “A Quantitative Theory of Time-Consistent Unemployment Insurance”. It shows that lack of commitment by the government led to unemployment insurance extensions during the Great Recession, which in turn contributed to rising unemployment rates during the period. The paper combined both theory and data, and I had a lot of fun working on it.

What is your favorite class to teach and why?

YP: My favorite class to teach is the undergrad international finance class. I teach international capital flows, balance of payments, exchange rates, international financial system, etc. In the age of globalization, it is fun to talk about these international economic and financial issues.

What was your favorite class as an undergrad?

YP: My favorite class as an undergrad was a year-long liberal arts education sequence on classical political, economic and social thoughts. I got to read books by Plato, Hobbes, Locke, Mill, Rousseau, Smith, Tocqueville, Paine, Hayek, etc. Although I had a hard time understanding most of it, it was an eye-opening experience for me.

What is your top piece of advice for your students?

YP: I think important skills to learn these days are data analytical skills and writing and presentation skills. But more importantly, think critically and be o