The Department of Economics was founded as a separate department in 1968 under the chairmanship of Dr. Marcelino Maceda, the noted cultural and economic anthropologist.  Economics instruction, however, existed well before then as part of the instruction in the liberal arts and beginning in the late 1950s a professional program leading to a bachelor’s degree.  Graduate training in economics commenced shortly after with the earliest recorded graduate of the Master of Arts program listed in 1964.  Noted graduates of the undergraduate program at this time include eminent economists Jesus Estanislao and Ernesto Pernia.  The latter is currently a member of the University’s Board of Trustees.

Beginning with the chairmanship of Professor Leonidas Tan in the 1970s, the department took on its nature as a mainstream neo-classical department.   Professor Tan is fondly remembered by students of that period for being an exacting taskmaster who was instrumental in producing the high-quality graduates of the era.

This connection with the neo-classical mainstream tradition continued through the years and continues until now.  The department, however, has in recent years taken on a process of introspection and is actively looking at other perspectives foremost among which is the New Institutional Economics.  Our recent transfer  starting June 2011 to the new School of Business and Economics has also called for a new round of discernment to determine how a synergy among this new collection of departments may be developed. 

The Department of Economics remains a small but friendly department, a hallmark throughout its history. With our low ratio of students per lecturer, we are able to offer intensive and personalized instruction in core economic courses. The department faculty is a dedicated group of economists with diverse interests. Our research focuses on select areas in economic development, environmental policy, human resources, business and industry, and energy.

Our undergraduates are especially active in academic pursuits. At the same time, the Carolinian Economics Society, the co-curricular student organization of the department, encourages participation in many academic, social and spiritual activities. Our graduate students often come to the department from other fields such as engineering, accounting, statistics, business administration, and government service in addition to a large number with economics backgrounds. They hold in common the recognition that advanced training in economics is valuable to their professional advancement. The department also trains many academics in the Southern Philippines.