"It is my pleasure to have the opportunity to lecture here today to the future ministers or premiers of China," Professor Daniel L. McFadden, the world-renowned economist and winner of the 2000 Nobel Prize in Economics, said in his opening remarks to the crowd of past and present students of Tsinghua's School of Economics and Management on May 26.
After a short friendly discussion with Professor Zhao Chunjun, Dean of Tsinghua SEM, Professor McFadden delivered a speech on "Economic Choices: Economic Decisions of Individuals" to more then 100 undergraduate and graduate students of SEM.
Professor McFadden explained how he developed the Bay Area Rapid Transit (BART) system model, and discussed his research in traditional consumer demand analysis, and methodology in economics.
Following the speech, questions were raised by the audience covering methodology, the relationship between economics and psychology, and the application of the BART model in different markets.
Professor McFadden attributed the success of his now-famous transportation system to being in the right place at the right time. He also emphasized that "To be strong in economics, one must be strong in mathematics."
The Nobel Committee awarded Professor McFadden the prestigious prize in 2000, "for his development of theory and methods for analyzing discrete choice." His outstanding research includes the decision-making model of the working, education and shopping behavior of the individual. His research finally resulted in the establishment of the famous BART public transportation system in southern California, and consumptive behavior for senior citizens.
The 65-year old economist now teaches at the University of California at Berkeley.
(05/26/26, School of Economics and Management)
