What are the trade-offs to eating in the dining hall instead of at University Center? How does supply and demand affect the cost of your sneakers? Why are concert tickets so darn expensive? Each winter, students at UC Irvine write songs, make videos, and create eye-catching presentations about the economics of everything from their coffee habit to fast fashion in a popular course called Basic Economics.

“We all live economics day to day; everything we do is living in markets,” says Bill Branch (pictured), professor and chair of economics, who teaches the class in the winter. “In this intro class, we give students the opportunity to connect the principles that we teach to their daily lives.”

The course, one of the largest offered by the Department of Economics, caters to non-majors, particularly students in programs outside the School of Social Sciences that require a basic understanding of economics. A macroeconomist himself, Branch knows that the subject’s textbooks and lectures can get a bit dry and technical, and he doesn’t want students to lose sight of the bigger picture. So he strives to make the course as interactive and engaging as possible.

EconLive

The final project, dubbed EconLive, requires students to explain how economic principles apply anywhere in their lives and share it on the section’s Tumblr page. Previous presentations have covered supply and demand of campus parking, the opportunity cost of playing video games instead of engaging in student life, and the astronomical price of Stanley water cups. Branch says he’s learned a lot about the interests of Anteaters in the 10 years he’s been teaching the course.

Second year biology major Spencer Lam took the class last year, after friends recommended it. For the final project, he and his friend made a video of themselves taking a run, playing badminton at the ARC, and dining at the Anteatery all while explaining the economics concepts coursing through all of their activities. The project, he says, really did help him connect economics to his life.

“I think about it every day – especially opportunity cost,” Lam says. “The whole concept applies to the life of a college student. Should I hang out with my friends or be studying, when there is this opportunity cost of losing time studying but you won’t be able to hang out later? The class exposed me to economics and then demonstrated its importance in our lives.”

Although each project is a relatively small percentage of the overall grade, Branch offers unlimited extra credit to reward exceptional creativity, which has sparked some outstanding and memorable presentations over the years, including an original song and a series of interactive videos like an economic Choose Your Own Adventure. The end goal is making the concepts relatable and, hopefully, memorable to students when they go out into the real world.

“Understanding economic principles can help students make better decisions in their own lives, especially for those who are not going to become economics majors,” says Branch. “Thinking through trade offs, and how markets work or don’t work, is important to becoming informed citizens.”

Digging into inflation

In his own research, Branch specializes in inflation – a hot topic throughout the 2024 election and going into 2025. Now is a fascinating time for researchers like him, as prevailing public opinion on the economy seems to contradict experts. Economic theory holds that some inflation should be expected when the economy is strong but, Branch points out, Americans tend to think of inflation as a bad omen, instead of a sign of boom times. Another surprise to economists: the recent focus on grocery prices as an economic indicator instead of other goods, particularly gas, which for decades after the 1970s energy crisis was the primary source of inflation anxiety among Americans.

Branch’s work seeks to understand how people and firms anticipate inflation – whether it will be high or low – and how their expectations play into their plans to buy a car, refinance their home, or decide to hire or layoff staff. Economists call this the “learning approach” to inflation, where individuals and companies look at past data and as they plan ahead. Understanding what drives people’s beliefs about inflation can help explain market dynamics and inform monetary policy. In fact, Branch served as a visiting scholar and consultant for several branches of the Federal Reserve Bank.

“If people think inflation is going to be high, and goods are going to cost more, they may seek raises or look for new jobs. It can become self-fulfilling,” Branch explains. “I try to understand how those mechanisms work.”

Economics of success

Branch is among over 30 faculty in the economics department, with specialties ranging from urban economics to transportation. Whereas many institutions tend to cluster faculty from one perspective – Keynesian versus supply-side or saltwater versus freshwater economics – UCI includes faculty who ascribe to a variety of philosophies. Branch, as chair of the department, celebrates this diversity of the faculty as a distinctive benefit for students.

Both the department’s undergraduate and graduate programs are ranked among the top 20 U.S. public universities by U.S. News & World Report. The undergraduate program, ranked 14th, offers a minor and three bachelor of arts degrees – economics, business economics and quantitative economics. The doctorate program ranks 17th, and offers concentrations in monetary policy and central banking, transportation, and public choice.

About half of the department’s Ph.D. recipients go into academia, while the rest pursue careers in the private sector or government. Branch notes a rising interest in economics graduates from tech companies such as Amazon and Uber, which rely on expertise provided by economists in many of their data-driven projects.

“We want our graduate students to find careers that are fulfilling to them, and that leverage their strong suits,” says Branch. “The job prospects are great for economists, and the training that we provide in economics, econometrics and data analysis helps them excel in any direction they choose.”

Whether they pursue a degree in economics, or take just a single course to fulfill a graduation requirement, Branch’s goal is to give UCI students a fundamental understanding of the economic principles at work globally, nationally, and in their own lives.

—Christine Byrd for the School of Social Sciences