Different Fields of Economics

Although we tend to think of economics as a singular area of study, the truth is that the field is extremely vast and can be divided into many branches. The interdisciplinary nature of the topics within economics is what makes the area of study applicable in many different fields and appealing to individuals interested in all kinds of subjects.

Click on the dropdown feature below to read more about the various specialties of economics!

• Macroeconomics

  Is one of the two major divisions within the general field of economics. It focuses on concerns pertaining to the large-scale regional, national, or global economy as a whole. It intends to understand economy-wide events like national output, unemployment rates, inflation rates, gross domestic product (GDP), and fiscal and monetary policy, among many others.

• Microeconomics

  Is the second of the two major groupings within mainstream economics. Unlike macroeconomics—which focuses on larger-scale topics—microeconomics narrows more into single factors. It studies the decision-making processes of individuals and firms to offer insight into the tendencies of these parties when responding to changes in incentives, constraints, trade-offs, etc.

• Behavioral economics

  Is a branch of economics that evaluates the effects of psychological and cognitive factors on individuals’ and markets’ decision-making processes to understand the mechanisms that drive public choice. The field is concerned with concepts like bounded rationality of economic agents, gambler’s fallacy, nudge theory, and search heuristics.

• Health economics

  Is the discipline of economics intended to research and interpret the health care system and ultimately propose improved health interventions, programs, and policies. Health economists explore topics like how people make decisions regarding their consumption of medical assistance, how a medical operation’s resources are allocated, cost inflation in ethical drugs, etc.

• Development economics

  Is a subspecialty of economics that looks into the infrastructure, working conditions, fiscal policies, health, education, and other aspects of specifically developing countries. Research in the field is interpreted to implement programs and policies that alleviate the problems inhibiting economic prosperity and growth within the less-developed nations.

• Econometrics

  Uses economic theory, statistical inference, multivariable calculus, linear algebra, and other mathematical concepts to provide empirical context to economic patterns. Econometrics use their collected data to test hypotheses and develop models that can be used as a forecasting tool of economic trends.

• Labor economics

  Studies the dynamics of the market to understand employers’ and firms’ determinants of employee wages, the nature of worker incentives, and the role of minimum wage laws, unions, pension plans, and training programs.

• Game theory

  Is a study of strategic interactions that helps predict likely outcomes when individuals’ and firms’ decisions, like price-fixing and collusion, have an impact on other individuals and firms actions. Economists are able to use game theory to understand oligopoly firm behavior.

• Industrial Organization

  Is concerned with the strategic behavior of firms (including where firms have market power, how firms compete with each other, etc.), antitrust policy and market competition, and regulatory policy. The field applied economic theory of price to industries.

• Economics History

  By looking into the past in how markets emerged, the industrial revolution took flight, agricultural productivity experienced changes, and other similar patterns occurred, economics history examines how economic outcomes have changed over time.

• Economics of Education

  Explores issues related to the comparative efficiency of different education programs and policies, the demand for education, the financing and provision of schooling, and other topics within the category of education to provide the best outcomes for students.

• International Trade & Finance

  Is an applied field of economics that studies the flow of money across international borders and explains topics like globalization and the balance of payments within countries.

• Law & Economics

  Applies economic theory to the practice of law and examines the individual and institutional economic decisions that are defined by the legal system, including property rights, contract law, and many others.

• Public Economics

  Analyzes the effect of public policy on outcomes like distribution of income in the economy, allocation of resources, and others. It builds on the theory of welfare economics and is ultimately intended to improve the design of tax systems, government programs, and other such processes that affect individuals in a society.

• Environmental Economics

  Is a subdiscipline that looks into the financial implications of different environmental policies and applies general economic topics like valuation and externalities to environmental questions. The field has experienced increased popularity recently due to growing environmental concerns in past years.