This exercise helps instructors teach students how to perform a simple event study. The study tests to see if stocks earn abnormal returns when added to the S&P 500. Students select a random sample of stocks that were added to the index between January 2000 and July 2015. The accompanying spreadsheet calculates cumulative abnormal returns and…

Outlines the differences between the traditional and modern theoretical models of demand for money. States that the two models are often used interchangeably in textbooks, causing ambiguity. Argues against the use of linear specifications that imply that income velocity can increase without limit and that autonomous components of aggregate demand…

Argues that the aggregate good is a powerful pedagogical device in economics. Uses a simple graphical analysis that demonstrates to the student the concept of an aggregate good, that preferences can indeed be collapsed from many goods to two. (DB)

Explains and illustrates a simplified use of graphical analysis for analyzing the profit-maximizing firm. Believes that graphical analysis helps college students gain a deeper understanding of marginalism and an increased ability to formulate economic problems in marginalist terms. (DB)

Provides a graphical framework for presenting interactions among current account flows, capital account flows, and exchange rates. Suggests that the two type of flows must be considered separately in discussions of foreign exchange equilibrium and balance of payments flows. Supplies sample graphs and instructions for applying the framework to real…

Describes graphical techniques to help explain the multiple creation of deposits that accompany lending in a fractional reserve banking system. Presents a model that emphasizes the banking system, the interaction of total permitted, required, and excess reserves and deposits. Argues that the approach simplifies information to examining a slope…

Recommends that economics instruction begin a synthesizing process early by connecting discussion of the production possibilities curve and the supply curve. Suggests that linking the two is logical for conveying integrated economic thinking to beginning students. Argues that such a link makes it easier to discuss the competitive norm. (DK)

Presents a diagram for figuring the value of time into an individual's labor-supply decisions and the time intensiveness of the individual's consumption patterns. Seeks to make the integration of differing time values with leisure income choices more understandable for students. (DK)

Contends that, although most economics students are acquainted with the graphical analysis of the income and substitution effects of a price change, they often fail to appreciate that the same graphs provide information on the income elasticities of the two goods. Illustrates the proof of this concept using mathematical formulae and five graphic…

Asserts that, despite changes resulting from new theories on international trade, simple graphs in the Heckscher-Ohlin-Samuelson tradition remain a significant part of most courses in international economics. Provides four figures illustrating these economic concepts. (CFR)

Contends that, despite ongoing criticism, Allen's arc elasticity formula remains entrenched in the microeconomics principles curriculum. Reviews the evolution and continuing scrutiny of the formula. Argues that the use of the geometric mean offers pedagogical advantages over the traditional arithmetic mean approach. (CFR)

Maintains that teachers and textbook graphics follow the same basic pattern in illustrating changes in demand curves when product prices increase. Asserts that the use of computer graphics will enable teachers to be more precise in their graphic presentation of price elasticity. (CFR)

Presents results of a study examining how introductory economics students use graphic analysis. Concludes that the difficulties students have in analyzing an economic problem graphically result from problems with concept formation. Suggests that videotaping can assist instructors to understand and anticipate the learning processes that students…

Presents a model of the economic theory of regulation and recommends its use in undergraduate economics classes. Describes the use of computer-assisted instruction to teach the theory. Maintains that the approach enables students to gain access to graphs and tables that they produce themselves. (CFR)

Replicates an earlier study that used videotapes to examine the types of errors made by novice economics students in graphic analysis of a simple supply-demand problem. Further explores the issue by improving the framework for analyzing errors and documenting some methods used by novice groups to correct errors. (MJP)