The University of the Philippines Diliman School of Economics (UPSE) is a degree-granting unit of the University of the Philippines Diliman specializing in the study of economics. Established in 1965, the School of Economics was chosen as the first and only CHED Center for Excellence in Economics in the Philippines in 1999.

As of September 2024, the School was among the top 5% (ranked 238) of economics departments in the world based on the strength of its graduate research in the fields of Economics and Finance, as ranked by RePEc.

Multiple Socioeconomic Planning Secretaries and Directors-General of the National Economic and Development Authority have hailed from the school such as Gerardo Sicat, Solita Collas-Monsod, Dante Canlas, Emmanuel Esguerra, and Felipe Medalla.

Faculty research is particularly strong in the areas of health economics, public economics, and development economics. In collaboration with the Philippine Economic Society, the school publishes the Philippine Review of Economics,Philippine Review of Economics a leading journal of economics-related research in the Philippines.

The 9th and current dean of the School of Economics is Prof. Ma. Joy V. Abrenica, Ph.D. She was appointed in 2021 for a term for 3 years.

History

Department of Economics The School of Economics traces its origins to the Department of Economics established in 1926 under the College of Liberal Arts (CLA). Alongside its focus on economic studies, the department also offered the degree of Bachelor of Science in Commerce as a two-year course.

Three years later in 1929, the department was detached from the CLA upon the establishment of the School of Business Administration, which would be elevated into a college in 1934.

The Department of Economics was financially and academically supported by institutions like the Rockefeller Foundation and the Ford Foundation. Visiting professors such as Karl William Kapp and Vernon Ruttan from the Rockefeller Foundation, and John H. Power and Harry Oshima from the Ford Foundation were indispensable to the department.

Additional visiting professors such as Jeffrey G. Williamson and Leon Mears would offer their services to the department.

Contention would later happen, however, upon the establishment of the Institute of Economic Development and Research which functioned as the economic research wing of UP. Though separate units of UP, instructors and professors under the department also held positions in the institute, which sparked calls for the detachment of the department from the College of Business Administration.

The Department of Economics initially specialized solely in baccalaureate programs in economics, immersing students with economic problems in the Philippines. Graduate studies in economics were often taken in foreign universities upon financial backing. Foreign exchange programs to universities like Harvard, Columbia, and MIT would be funded by the Rockefeller Foundation.

In 1963, the Director of the IEDR, Amado Castro, and the Chair of the Department of Economics, José "Pepe" Encarnación Jr., would push for a homegrown graduate studies program, up to the doctorate level, at the department.

In early 1964, a one-year UP-University of Wisconsin Program in Development Economics specializing in basic skills in development economics would be financed by the Ford Foundation.

Many of the graduates of the time would serve in what would become the National Economic and Development Authority and the Philippine Institute for Development Studies.

School of Economics as an Academic Degree Granting Unit Recommended by the Dean of the College of Business Administration, Cesar Virata, and endorsed by U.P. President Carlos P. Romulo, the School of Economics was established in 1965 as a degree-granting unit upon the merger of the Department of Economics and the Institute of Economic Development and Research (IEDR). Amado Castro would serve as the first Dean of the School of Economics from its founding, until his resignation in 1974.

Following the foundation of the School of Economics as an independent unit, the IEDR would be restructured into the Economics Research Center (ERC) to coordinate research activities within the school. The ERC focuses on collaborative research between the school faculty, graduate students, and other scholars, associateships with visiting scholars, and coordination with government agencies and international bodies through the school faculty.

In 1974, José Encarnación Jr. became the dean of the school, and would serve until 1994, making him the longest-serving dean of the school.

In the same year, the Philippine Center for Economic Development (PCED) was established to provide research, training, teaching and other programs in support of the School of Economics.

Financed by PCED, the School of Economics would move to its current location along Osmeña Avenue in 1977. The school's two buildings, the Diosdado P. Macapagal Hall (often referred to as the Library Building) and the José "Pepe" Encarnación Jr. Hall, were designed by Carlos Arguelles.

In the 80s, the school would establish the Health Economics Program (HEP) as a specialization for its graduate students. Organized by Dr. Alejandro N. Herrin, the program sought to train graduates in health economic issues, undertake health-related economics policy research, and disseminate information generated through HEP research. The HEP is supervised and implemented by the Health Economics Program Committee, consisting of faculty members specializing in health economics.

The HEP offers electives specializing in health economics both at the undergraduate and graduate levels. The health committee members have also helped generate research and policy modules for use by national and local health workers under the Department of Health (DOH), including the World Bank-DOH Flagship Course on Sustainable Financing and the DOH Introductory Course on Principles of Health Systems Reform. HEP members have also contributed to international policy research projects such as the WB/DOH-Philippine Institute for Development Studies (PIDS)– Philippine Health Development Program (1990–1995)which generated research on healthcare financing and the United States Agency for International Development (USAID)-funded Health Policy Development Program (1992–1996) which led to the creation of the National Health Insurance Act which established PhilHealth.

School of Economics in the 21st Century In March 2020, in response to the implementation of the Enhanced Community Quarantine in Luzon to mitigate the COVID-19 pandemic, Alfredo Paloyo of the University of Wollongong, and School of Economics faculty Cielo Magno, Karl Jandoc, Laarni Escresa, Maria Christina Epetia, Maria Socorro Bautista, and Emmanuel de Dios argued that the initial ₱27.1 billion fiscal stimulus packaged proposed by President Rodrigo Duterte was insufficient as the government should invest more to mitigate the effects of the community quarantine. They specified that the government focus on programs such as distribution of cash and non-cash aid to the poor, moratorium on foreclosures and utility payments, extension of sick leaves, loans for small to medium businesses, mass testing, relaxation of tariffs and other barriers on PPE, takeovers of hotels and other accommodation services, financial support to farmers and other affected industries to increase hospital bed capacity, totaling ₱100 to 300 billion.

From May 15 to November 17, 2023, the School of Economics and the PCED would host a lecture series titled "PCED@50 Lecture Series: 50 Years of Economic Policy-making." to be delivered by former NEDA Directors-General Gerardo Sicat, Solita Monsod, Cielito Habito, Felipe Medalla, and Dante Canlas and former NEDA Secretary Ernesto Pernia and incumbent Arsenio Balisacan.

On May 17, 2024, the Philippine Center for Economic Development would formally celebrate its 50th founding anniversary. Surviving PCED founding members Gerardo Sicat, Cesar Virata, and Jaime Laya joined the current PCED Chair, Arsenio Balisacan, the Department of Budget and Management Secretary Amenah Pangandaman, UP President Angelo Jimenez, and PCED Executive Director and UPSE Dean Joy V. Abrenica in marking PCED's golden anniversary.

In response to the soon approval of the Maharlika Investment Fund (MIF) by President Bongbong Marcos, and the proposed remittance of Land Bank and the Development Bank of the Philippines capital to fund the MIF, 21 professors of the school published a paper entitled "Maharlika Investment Fund: Still Beyond Repair" in June 2023 arguing against the investment fund.Abrenica, Joy V.; Adorna, Luzeta C.; Coseteng, Patricia C.; de Dios, Emmanuel S.; de los Angeles, Marian S.; Del Castillo, Noel B.; Endriga, Benjamin A.; Escresa, Laarni C.; Estudillo, Jonna P.; Gochoco-Bautista, Maria Socorro; Kraft, Aleli D.; Lee, Alice A.; Mendoza, Adrian R.; Pernia, Ernesto M.; Punongbayan, Jan Carlos B.; Reside, Renato E. Jr.; Sabarillo, Anthony G.; Solon, Orville Jose C.; Suanes, Gerard P.; Tan, Elizabeth; Yamashita, Mariel Jances Nhayin P. (June 2023). "Maharlika Investment Fund: Still Beyond Repair". UP School of Economics Discussion Papers. They highlighted 6 key issues with the then-proposed legislation:

lack of focus on whether the MIF served as a sovereign wealth fund or a national development fund; Encroachment on government budgetary processes; Lack of money sources for the MIF and its corresponding moral hazard; Lack of administrative independence among the appointed board of directors; Presently high interest rate which can hamper investments; and Diverts attention from more urgent national issues such as retirement and pension reform for military personnel.

In a forum held by the school in August 2023, Finance Secretary Benjamin E. Diokno detailed his position against the "unsustainable" Republic Act 10931 or the Universal Access to Quality Tertiary Education Act of 2017 which mandated that all State Universities and Colleges (SUCs) in the country offer free tuition. Diokno elaborated that in his experience as the Budget Secretary and former Bangko Sentral Governor, the law was "anti-poor" as more poor students didn't attend college. He added that improvement of the basic education system should be prioritized over maintaining free college tuition to increase student's odds of gaining entry into SUCs.

Deans of the School of Economics The Dean of the School of Economics is the presiding officer of the school and is appointed by the Board of Regents upon the recommendation of the Chancellor and the President of the University.

They are appointed to a term of 3 years from the date of their appointment, and shall continue their term until the appointment of their successor. A nominal term limit of 2 terms is allowed, however, they may be permitted more than 2 terms in "highly exceptional cases." Amado Castro (1965–1974) José Encarnación Jr. (1974–1994) Felipe M. Medalla (1994–1998) Raul V. Fabella (1998 - 2007) Emmanuel S. de Dios (2007 - 2010) Arsenio M. Balisacan (2010 - 2012) Ramon L. Clarete (2012 - 2015) Orville Jose C. Solon (2015 - 2021) Ma. Joy V. Abrenica (2021–present)

Rules on Scholastic Standing

The University of the Philippines implements a grade point scale with the requirement that all baccalaureate students achieve a General Weighted Average (GWA) of no less than 3.00 (on a scale of 1.00 to 5.00, with 4.00 as conditional failure, and 5.00 as failed) at the end of each semester.