The Effect of Macro/Micro Course Sequencing on Learning and Attitudes in Principles of Economics

Most of us naturally assume that the more courses a student takes the more he or she will learn. Little has been done, however, to determine just how much additional knowledge or understanding is acquired from economics courses above the introductory level. David Hartman, Director of Undergraduate Economics at Harvard, has taken an important step in attempting to measure the impact of the higher level courses. This atticle reports the results of a study of the effects of intermediate micro and macro courses, field courses, a “graduate-type highly theoretical course,” and a policy-oriented micro course. The report should be of great interest, and will probably engender additional research in other colleges.     

Adolescents' utilitarian and hedonic Web consumption behavior: Hierarchical influence of personal values and innovativeness

This study addresses the Web‐consumption behavior of adolescents from a cognitive, hierarchical decision‐making perspective. Using a structural equation analysis technique on data collected from high school students, two a priori domains of Web consumption (utilitarian and hedonic) were confirmed. The utilitarian and hedonic domains of Web consumption were influenced directly by innovativeness and indirectly by the personal values of the adolescents. A theoretical discussion based on the results and the implications of these results are presented for the benefit of youth practitioners, educators, parents, and social marketers. © 2006 Wiley Periodicals, Inc.     

Letter From the Editor

This paper compares the United States depreciation rules, corporate income tax rates, and investment tax credits with the seven countries that have the highest direct investment from the U.S. These countries are Australia, Canada. France, Germany, Japan, the Netherlands, and the United Kingdom. For illustrative purposes, two comparative examples for computer systems and manufacturing equipment are included.     

Model Selection and Averaging in Financial Risk Management

Simulated asset returns are used in many areas of actuarial science. For example, life insurers use them to price annuities, life insurance, and investment guarantees. The quality of those simulations has come under increased scrutiny during the current financial crisis. When simulating the asset price process, properly choosing which model or models to use, and accounting for the uncertainty in that choice, is essential. We investigate how best to choose a model from a flexible set of models. In our regime-switching models the individual regimes are not constrained to be from the same distributional family. Even with larger sample sizes, the standard model-selection methods (AIC, BIC, and DIC) incorrectly identify the models far too often. Rather than trying to identify the best model and limiting the simulation to a single distribution, we show that the simulations can be made more realistic by explicitly modeling the uncertainty in the model-selection process. Specifically, we consider a parallel model-selection method that provides the posterior probabilities of each model being the best, enabling model averaging and providing deeper insights into the relationships between the models. The value of the method is demonstrated through a simulation study, and the method is then applied to total return data from the S&P 500.     

Technical Note: New Depreciation Rules from the Job Creation and Worker Assistance Act of 2002 and their Impact on Capital Investment

United States President George W. Bush recently signed an economic stimulus bill into law entitled the Job Creation and Worker Assistance Act. The law issues a number of directives aimed at increasing corporate capital expenditures in hopes of revitalizing a sagging economy. In this article, we focus on the increased amount of depreciation allowed in the first year following a qualifying capital investment. Specifically, an “additional” 30% of depreciation is allowed in the first year for ail personal property assets (20-year asset classes or less). This is clearly a significant change. Here, we derive “new” depreciation tables for personal property classes with the adjusted rule, both for MACRS and AMACRS, and illustrate the impact on capital investment decisions.