Gordon Tullock and Richard McKenzie. The New World of Economics.

The authors extend the literature on the efficacy of high school economics instruction in two directions. First, they assess how much economic knowledge that California students acquired in their compulsory high school course is retained on their entering college. Second, using as a control group some college students from the state of Washington, where there is no mandate for high school economics instruction, the authors evaluate the impact of California's high school economics mandate on students’ economic literacy when they enter college. The testing instrument is the Test of Economic Literacy (TEL).     

A Survey of Economic Understanding in U.S. High Schools

The recent widespread adoption of online competitions in economic education provides a unique opportunity to make frequent assessments of economic literacy in U.S. classrooms. In this survey, student responses to test items from the Test of Economic Literacy (TEL) are used to create economic concept and content area achievement benchmarks. These benchmarks provide an interim renorming of the TEL and allow the authors to gauge the status of economic understanding among high school students. The data also allow the authors to compare learning outcomes between regular and advanced economics classes. Finally, the authors find that students in advanced economics classes significantly outperform students in regular classes.     

Data literacy in economic development

In economic development and other economics electives, students regularly encounter economic measures of absolute and relative deprivation, from poverty measures like the Foster-Greer-Thorbecke index to measures of distribution like the Gini index. By “doing economics,” students practice applying economic measurement to real-world data and develop more general data literacy. The author proposes a series of exercises starting with stylized 10-household economies, proceeding to nationally representative cross-sectional surveys using MS Excel or Google Spreadsheets, and culminating in students applying their acquired data literacy to a team project. The data sources are easily tailored to alternative household surveys in low- and middle-income countries that include the required variables. Students learn data literacy through recognizing the properties of rectangular data, visualizing data appropriately, and creating aggregate economic measures.     

Community college economics instruction: Results from a National Science Foundation Project

The principal investigator of a National Science Foundation project, “Economics at Community Colleges,” surveyed community college economics faculty and organized workshops, webinars, and regional meetings to address community college faculty isolation from new ideas in economics and economics instruction. Survey results, combined with National Study of Postsecondary Faculty data, help fill a lacuna in information about community college faculty. A key finding is the reliance in community college economic instruction on part-time faculty, including many who do not hold a graduate degree in economics. The project's webinars reached the most community college faculty, while the workshops were most effective in improving economics instruction. Areas for future research are identified.     

Economic Education in Korea: Current Status and Changes

The authors describe key aspects of precollege and undergraduate economic education in Korea. They show that precollege students seem to have low economics literacy due to problems with the curriculum and insufficient training of teachers. At the undergraduate level, they show that economics departments have more male students than female students and that the employment rate for economics majors is lower than for business majors. They hope to draw more of Korean economists' attention to research initiatives in economic education.     

The Simple Analytics of the Principal-Agent Incentive Contract

Going beyond previous studies of the effectiveness of high school economics courses, Saunders reports on his research findings which suggest that “as one moves from the Recogrtition and Understanding questions … through the Simple Application questions to the Complex Application questions, the differences in favor of those with high school economics become smaller….” The implications of these results for the introductory college course are discussed, with some specific suggestions for the course's content and orientation.     

Journal Articles of Interest from Other Disciplines

The authors describe the present state of economic education in Japan. There is a larger number of undergraduate students who major in economics, but their purpose of studying economics and their economic literacy differ. Precollege economic education is regulated by the course of study and limited by the poor ability of teachers to teach the economics content.     

An Illustration of the Bias of OLS for Yt = λY t-1 + U t

Using longitudinal data on undergraduates from 463 American colleges and universities from 1994–99, the authors examine how majoring in economics affects student opinions on 13 social, political, and economic issues. Economics majors were found to begin and end their college tenure with differing opinions on several issues when compared to other majors, and studying economics was found to be related to changes in several opinions. On the whole, studying economics appeared to increase beliefs in favor of personal freedom and decrease support for government intervention in markets. However, the authors find little evidence that economics majors leave college more united on their opinions when compared to the general student population.     

Economic Analysis in Plain English: A Course in Economic Journalism

The authors describe an experimental economics course designed as a journalism workshop. Students were reporters, writing articles on economic events and issues and about prominent economists and their ideas. The articles were read and discussed by the entire class. The requirement to explain economics to lay readers clearly but accurately developed the students' own economic literacy.     

How Departments of Economics Evaluate Teaching

Based on results from a 1999 national survey, William Becker and Michael Watts found that student evaluations of teaching were by far the most widely used, and often the only method used by economics departments, to evaluate teaching in undergraduate economics courses. To investigate whether departments of economics have moved beyond the use of student evaluations of teaching, in 2011 the current authors conducted a national survey of departments based largely on questions used in the 1999 survey. The surveys included items on how courses and teaching are evaluated, and on how that information is used in departmental promotion and salary decisions.     

Economics training and hyperbolic discounting: training versus selection effects

This paper contributes to the literature on the effects of economics training on behavior by examining the link between hyperbolic discounting and the number of economics classes taken by a sample of 1310 college graduates at Ohio University. A strong negative correlation is found between economics training and hyperbolic discounting behavior. Regression analysis shows that dynamic consistency is a determinant of taking economics classes. Once the endogeneity of these variables is accounted for, economics training is no longer a statistically significant determinant of hyperbolic discounting. Thus, the selection effect of studying economics outweighs the training effect. Behavioral variables are found to be more important in explaining hyperbolic discounting than demographic variables. The study suggests the importance of controlling for both the selection effect and the training effect for all studies that examine the role of economic training on behavior.     

Guidelines For Pre-College Economics Education: A Critique

While economists of all persuasions undoubtedly agree that universal economic literacy would be desirable, there appears to be substantial disagreement over what economic literacy is, what problems most need to be addressed, and how they can best be solved. These differences are clearly reflected in their diverse views as to what the goals should be for teaching economics in secondary schools. This paper specifically examines the recommendations offered in a paper on economic content standards by leaders of the economic education movement in the U.S. and finds them seriously wanting.     

The Relative Effectiveness of Economics Instruction for Teachers and College Students

Walstad reports on a master of instruction program for teachers of pre-college students. Comparisons between different groups of students (i.e., teachers in the program, regular intermediate theory students, …) indicate that the program appeared to meet its cognitive and attitudinal objectives. The study, however, raises serious questions about the effectiveness of instruction at the intermediate level and about the economic understanding of pre-college economics teachers (less than or equal to the college principles students included in the study).     

An Exploratory Study of the Economic Understanding of Elementary School Teachers

Professor McKenzie administered the SRA Test of Economic Understanding to 144 elementary teachers in southwest Virginia and compared their performance with that of several other groups. It is concluded that elementary teachers whose formal economics training is comparable to that of high school teachers are equally knowledgable. His results raise further questions about the effectiveness of two semesters of economics as compared with one, at least as far as long-run impact is concerned. The so-called “Stigler hypothesis” was also tested, McKenzie concluding that Stigler was probably “overly pessimistic about the lasting effects of the college economics course.” Several suggestions for improving the teaching of economics at the elementary level are included.     

Economics Courses Offered and Required in Two-year Colleges

Reporting the results of a nation-wide survey of economics in junior colleges, Dawson lists the courses given and indicates which students are required to take economics. Not surprisingly, Principles of Economics is most common, and business students are the ones most likely to be required to take it. The average number of courses offered is three, although some schools offer as many as 10. A breakdown by type of college (public, independent, church-related) is presented, and suggestions for improvement are offered.     

Teaching (un)sustainability? University sustainability commitments and student experiences of introductory economics

The three largest public universities in British Columbia, Canada have signed the Talloires Declaration, committing themselves to promoting sustainability and creating expectations that they will integrate sustainability across the curriculum in order to improve students' environmental literacy and stewardship. About 40% of North American university students take a mainstream introductory economics course; few of these students take economics at more advanced levels. As such, introductory economics courses are an important vehicle for students to learn economic theory; they have the potential to contribute to the knowledge that students can mobilize to foster sustainability. Interviews were held with 54 students who had recently completed an introductory level mainstream economics course at one of the three universities. Students reported that introductory economics courses place little emphasis on the environment and sustainability, they recalled course content with normative connotations that are problematic from a sustainability perspective and they described how discussion of the limitations of mainstream theory was set aside. Student reports of the insights introductory economics offers into environmental problems imply that these courses are failing to substantively increase students' understanding of sustainability and linkages between the environment and the economy. Findings suggest that current introductory economics curriculum undermines the universities' sustainability commitments.     

Economic research in Canada: Evolution and convergence

We describe the history and current state of economic research in Canada, including the role of the Canadian Economics Association (CEA) and other institutions. Our paper is organized around two central questions. Is Canadian economic research distinctive? And should it be more distinctive? We argue that a distinct Canadian “school” of economics existed in the past, but that economic research in Canada has converged on an evolving global standard in both method and topics. We ask whether this convergence serves the Canadian public interest and we raise some questions about the future of the CEA and its flagship journal, the CJE.     

Does studying economics in college influence loan decisions later in life?

The authors investigate the relationship between undergraduate economics coursework or majoring in economics and the debt behavior of the college graduates. The data come from the Baccalaureate and Beyond (B&B) longitudinal survey of the National Center for Education Statistics. College graduates who took courses in undergraduate economics or majored in the subject appear less willing to assume debt through auto loans or federal student loans. If they do assume debt, the amount of the monthly payment (auto loans) or the total amount owed (student loans) is less for college graduates with economics coursework or an economics major compared with other students. The findings are robust for college graduates one year and four years after graduation.     

Quantifying central banks’ scientization: why and how to do a quantified organizational history of economics

ABSTRACT

A subset of research in the history of economics is organizational history – i.e. the study of the organizations producing, circulating and applying economic ideas. This article maintains that some research questions in organizational history call for quantitative methods because they ask about magnitudes. More precisely, we claim that quantitative methods should complement rather than replace other research methods when the research question is at least partly about magnitudes. We walk the walk with a study of one type of organization, central banks, and of its changing relationship with economic science. Our results point unambiguously toward a growing dominance of central banks in the specialized field of monetary economics. Central banks have swelling research armies, they publish a growing share of the articles in specialized scholarly journals, and these articles tend to have more impact today than the articles produced outside central banks.     

The Rate of Change in Evolutionary Systems and Evolutionary Economic Modeling

Evolutionary economics seeks to model socio-economic reality as an evolutionary system. This powerful approach entails the implication of the continuous loss of information through the evolutionary process. The implication corresponds to evolutionary biology, although the systems in evolutionary economics are different from those in evolutionary biology. The issue of the loss of information has not been extensively studied in economics. Many open questions remain: Which knowledge is lost under what circumstances? Can loss of information be harmful to the socio-economic system as a whole in the presence of runaway dynamics caused by, for example, network externalities? How can the development of knowledge in economic systems be studied? The present article examines these questions and more.