The authors present a version of the Diamond-Mortensen-Pissarides model of unemployment that is accessible to undergraduates and preserve the dynamic structure of the original model. The model is solvable in closed form using basic algebra and admits a graphical representation useful for illustrating a variety of comparative statics. They show how…

In this article, the author discusses how graphical simulation models created using STELLA software can be used to present natural resource systems in an intuitive way in undergraduate natural resource economics classes based on his experiences at a leading research university, a state university, and a leading liberal arts college in the United…

The author analyzes the inflation-targeting model that underlies recent textbook expositions of the aggregate demand-aggregate supply approach used in introductory courses in macroeconomics. He shows how numerical simulations of a model with inflation inertia can be used as a tool to help students understand adjustments in response to demand and…

General equilibrium models now play important roles in many fields of economics including tax policy, environmental regulation, international trade, and economic development. The intermediate microeconomics classroom has not kept pace with these trends, however. Microeconomics textbooks primarily focus on the insights that can be drawn from the…

NutrientNet is an Internet-based environment in which a class can simulate a market-based approach for improving water quality. In NutrientNet, each student receives a role as either a point source or a nonpoint source polluter, and then the participants are allowed to trade water quality credits to cost-effectively reduce pollution in a…

The authors present a constructivist approach for teaching game theory, on the basis, in part, of Axelrod's research approach. Using the Axelrod tournament multi-user system (ATMUS) software, students create strategies for a repeated prisoner's dilemma (RPD). Later, these strategies are matched with those of their classmates' in a classroom…

Describes the development of two interactive computer simulations which were fully integrated with other course materials. The simulations illustrate the effects of various real and monetary "demand shocks" on aggregate income, interest rates, and components of spending and economic output. Includes an evaluation of the simulations'…

Describes the disadvantages of using "canned" simulations as a part of an undergraduate economics course. Identifies four advantages of having students develop their own computer simulation models. Outlines the model-building process and displays a sample program. (JDH)

This article describes an economic model dealing with the demand for money and a microcomputer program which enables students to experiment with cash management techniques. By simulating personal experiences, the program teaches how changes in income, interest rates, and charges for exchanging bonds and cash affect money demand. (Author/JDH)

Computer simulation of the Alonso household location model can enrich the intermediate microeconomics course. The model includes decisions on location, land space, and other goods and is a valuable complement to the usual textbook model of household consumption. It has three decision variables, one of which is a "bad," and one good's price is a…

Illustrates different types of opportunities for using computer assisted instruction (CAI) on personal computers in the teaching of economics with four examples of currently available software. Describes the difficulties in providing and supporting CAI, and concludes with an analysis of the difficulties caused by the "public goods character" of…

For many students macroeconomics is very abstract; it is difficult for them to imagine that the theories are fundamentally about the coordination of human decisions. The author developed a simulation game called Steer the Economy that creates the possibility for students to make the decisions of the firms that are implicit in macroeconomic models.…

The author presents a computer game that puts the player in the role of a central bank governor. The game is a stochastic simulation of a standard reduced form macro model, and the user interacts with this simulation by manipulating the interest rate. The problem the player faces is in many ways quite realistic--just as a real monetary authority,…

Describes an instructional simulation of a commercial banking system. Identifies the teaching of portfolio theory, market robustness, and the subtleties of institutional constraints and decision making under uncertainty as the project's goals. Discusses the results of applying the simulation in an environment of local and national markets and a…

The authors provide a version of a double-auction market simulation designed for classes too large for most computer labs to accommodate in one sitting. Instead, students play the game from remote computers, wherever they may be and at any time during a given time period specified by the instructor. When the window of time expires, students can…