Measuring up: Undergrad presents independent research at economics conference

Reading through an academic paper, Siddharth Gundapaneni stumbled upon something interesting: an economic measure that hasn’t been used for decades, focused on the health of the private sector.

In his spare time, the Binghamton University sophomore researched the measure, known as private product remaining, and submitted a paper on the topic to the 49th annual Northeast Business and Economic Association conference. As an undergraduate, the Long Island native attracted attention when he presented there in November — and he plans to present at another major conference in February on the same topic.

“When undergraduates do research, it’s usually for something in school as opposed to a conference. But as someone who wants to pursue a PhD, become a professor and do this type of research full time, I just said, ‘Why not? I’m enjoying this and may as well get some early experience,’” said the Long Island native, a dual major in economic analysis and mathematical sciences.

Researchers rely on different lenses to understand and evaluate the economy. Private product remaining, which tracks the total production of the private sector, turned out to be unexpectedly useful.

Government spending is one of the main components of a country’s gross domestic product (GDP), which can skew perceptions on how private industry is really performing, he said. While a growing GDP is usually considered an indicator of a healthy economy, the private sector can take longer to recoup and recalibrate after a recession; private product remaining could be used to provide a clearer picture of economic performance by taking the public sector out of the equation.

“We talk a lot about the private sector as a concept, but there’s no one good measure for what it really is or the total value it creates. That’s what this does,” Gundapaneni said. “I’m arguing that, today, it can be used side-by-side with GDP for a broader, stronger picture.”

Funding from the economics department helped defray travel and lodging costs for the conference, which took place in Portsmouth, N.H. He finished his presentation the night before the conference, which involved a 10-hour trip on several buses. Professors attending the conference were surprised to see an undergraduate there, especially one who submitted a paper on his own.

Initially nervous, Gundapaneni quickly found his groove.

“When it’s something I’m confidant in and able to talk about, I only need three words on a slide and I can talk for 5 minutes,” he said.

Making connections

The New Hampshire conference was a rewarding experience, giving him the opportunity to meet other researchers in the field, including two alumni who earned their doctorates from Binghamton’s economics program: Alexandre Olbrecht, MA ’02, PhD ‘05, an economics professor at Ramapo College of New Jersey and executive director of the Eastern Economic Association, and Ramapo College Associate Professor Timothy Haase, MA ’08, PhD ’14.

Both attended Gunapaneni’s presentation, believing him to be a doctoral student at their alma mater. At the end, someone asked his year.

“Everyone’s expecting him to say, ‘I’m in my third or fourth year of a doctoral program,’” Olbrecht recounted. “Instead, he says, ‘Oh, I’m a sophomore in college.’ And the entire room basically dropped their jaws.”

Olbrecht plans to involve the student in a paper he’s working on. He also secured him a spot in the Eastern Economics Association Conference, which will take place in New York City and draws a much larger audience than the one in New Hampshire. While there, Gundapaneni plans to demonstrate more ways that private product remaining can be used.

“He’s the type of student who is going to be able to take advantage of all that Binghamton offers; he already has access to a world-class library and is starting to work with some world-class faculty,” Olbrecht said. “He’s the type of student who makes alumni proud. He’s got a tremendous amount of potential.”

Gundapaneni began taking advantage of his opportunities at Binghamton during his first year, reaching out to Distinguished Professor of Economics Solomon Polachek to learn more about economists whose work interested him. While he hasn’t yet taken one of Polachek’s classes, the professor has since served as a mentor and a sounding board for Gundapaneni’s projects.

Gundapaneni’s keen interest and insights into economics impressed Polachek, he said. The conference he presented at is typically devoted to research from professors and doctoral candidates.

“It is extraordinary to have a presentation by an undergraduate, let alone a sophomore,” Polachek said.

So far, Gundapaneni has also enjoyed Professor Christopher Hanes’ macroeconomics course and hopes to take more of his classes on monetary policy, one of Gundapaneni’s key interests.

Outside of the classroom, he has participated in Binghamton’s College Fed Challenge team, a competition hosted by the U.S. Federal Reserve System in which undergraduate teams analyze economic and financial conditions and formulate a monetary policy recommendation modeled after the Federal Open Market Committee. The team was comprised of sophomores, competing against teams of juniors and seniors from other schools, said Hanes, the faculty advisor. Gundapaneni was full of creative ideas, and Hanes expects the team to excel next year.

Economics and its impact on the larger world have long fascinated Gundapaneni. A healthy economy requires competent decision-makers — who in turn rely on accurate data and measures to understand intricate fiscal realities, he reflected.

“I’ve always been interested in understanding the way the world works, why people do the things they do and why certain things are the way they are. As I was growing up, I realized that economics is the best way to explore that,” he said. “It really brings a lot of different areas together.”