"Cap and trade" is one of the most innovative policy options developed by environmental economists. By placing a cap on a social bad and allowing firms to buy and sell the right to generate it, policymakers combine government intervention with market-based incentives to improve welfare and internalize the externality. Such programs…

The economics curriculum today does not emphasize the study of population. This needs to change immediately because we are in the midst of another demographic sea change, slamming on the brakes right after a rapid acceleration during the last half of the twentieth century. Instead of glibly tossing a dependency ratio onto a slide, this article…

Contemporary pedagogy encourages instructors to move away from memorization to teaching the ability to "do economics." In such an environment, students are taught to apply knowledge of economic measurement, the economic model, and economic policy to analyze current events and policies. In this article, the authors build on existing…

This article is not the usual Excel pedagogy fare in that it does not provide an application or example taught via a spreadsheet. Instead, it briefly reviews the history of spreadsheets in the economics classroom and explores the current environment, with an emphasis on modern learning theory. The conclusion is not surprising: spreadsheets improve…

In recent years, there has been some dispute over the appropriate way to model decision making in professional sports leagues. In particular, Szymanski and Kesenne (2004) argue that formulating the decision-making problem in a noncooperative game leads to radically different conclusions about the nature of competition in sports leagues. The author…

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…

A major challenge in conducting classroom experiments for larger classes is the complexity of assembling responses and reporting feedback to students. The author demonstrates how mobile phone text messaging can be used to overcome the limitations of pencil-and-paper experiments without incurring the costs of full computerization. Students submit…

Many instructors in subjects such as economics are frequently concerned with how to teach technical material to undergraduate students with limited mathematical backgrounds. One method that has proven successful for the authors is to connect theoretically sophisticated material with actual data. This enables students to see how the theory relates…

Simple problems of discrete-time optimal control can be solved using a standard spreadsheet software. The employed-solution method of backward iteration is intuitively understandable, does not require any programming skills, and is easy to implement so that it is suitable for classroom exercises with rational-expectations models. The author…

Applying the budget line/indifference curve apparatus to policy issues reveals important and sometimes counterintuitive policy implications. Also, it provides practice in using the apparatus. The author applies these tools to subsidies. The analysis follows textbook treatments but is extended at some points. In particular, the present analysis…

Describes a Web site that contains Microsoft Excel workbooks that draft consistent short-run and long-run cost curves and the text describing them. Details a common error in representing the curves. Reports that the Web site also presents revenues and profits for a price taker and a price maker. (JEH)

The authors use Microsoft Excel to derive compensated and uncompensated demand curves. They use a constant elasticity of substitution (CES) utility function to show how changes in a good's price or income affect the quantities demanded of that good and of the other composite good, using Excel's Solver. They provide three contributions. First, they…

Describes two applications in which the chain-weight index is explored using spreadsheet software. Explains that the first application introduces the concept by comparing it to Laspeyres, Paasche, and ideal indexes. States that the second application is a step-by-step process to calculate chain-weight index statistics. (JEH)

Uses the Specific Factors model to illustrate the meaning of economic efficiency, how complex economies simultaneously determine prices and quantities, and how changes in demand conditions or technology can affect income distribution among owners of factors of production. Employs spreadsheets to help students see how the model works. (JEH)

Considers alternative methods for using the computer in the intermediate macroeconomics course. Presents a flexible approach to using computer spreadsheets to illustrate the principal elements of macrotheory. Shows that the ability to fully integrate algebraic, numerical, and graphical presentations with electronic spreadsheets adds a significant…