The author describes a protocol for classroom experiments for courses that introduce undergraduates to signaling games. Signaling games are conceptually difficult because, when analyzing the game, students are not naturally inclined to think in probabilistic, Bayesian terms. The experimental design explicitly presents the posterior frequencies of…

In the course of the European Bologna process, the notion of employability becomes increasingly important for universities. Graduates are in particular employable, if they exactly possess those abilities and skills, which are required by employers. Studies show that in the context of recruiting university graduates, employers do not only pay…

This article reports on the trends in undergraduate economics degrees from 1991-2007. Undergraduate degrees in economics awarded by U.S. colleges and universities enjoyed a substantial upward trajectory for seven consecutive years from 1997 through 2004, accumulating a 57 percent rise over the seven years. But, like all good things that eventually…

With the current economic slump possibly the deepest since the Great Depression, interest in the subject of macroeconomics has reignited, and the number of students majoring in economics has increased during the last two years. While this would appear to be good news for educators in the economics field, the profession is nervous about more than…

The author offers innovative approaches to 3 topics that are typically only briefly mentioned (if at all) in money and banking courses. The first topic is a Treasury bill auction experiment in which students have an opportunity to participate directly. The results from a class of 14 money and banking students are used to explain how an instructor…

The authors describe a Web-based classroom experiment with two assets: cash and a stock that pays a random dividend. The interest rate on cash, coupled with a well-chosen final redemption value for the stock, induces a flat trajectory for the fundamental value of the stock. However, prices typically rise above this value during a session. The…

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…

Monotone methods enable comparative static analysis without the restrictive assumptions of the implicit-function theorem. Ease of use and flexibility in solving comparative static and game-theory problems have made monotone methods popular in the economics literature and in graduate courses, but they are still absent from undergraduate…

In order to enhance economic education in ways that are consistent with the liberal education perspective, the catalyst function of education needs to be supported more fully. The content of what is taught will, and should, be determined by individual professors and schools. Ideally, the "right" content will be taught passionately. But this is…

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…

The ever-simmering question of whether the tenure system should be reformed lit up the blogosphere, ignited by an online essay from the (tenured) professor Steven D. Levitt, co-author of the publishing phenomenon "Freakonomics: A Rogue Economist Explores the Hidden Side of Everything" and the popular blog Freakonomics. When Levitt posted "Let's…

In each period of a dynamic tax-rebate program, a (fixed) quantity tax is imposed on each unit of a given good, and the tax revenue is rebated back to the consumer in the next period. The program lasts for infinite number of periods. The author considers a representative consumer's dynamic consumption behavior, the long-run steady-state…

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…

The authors are both teachers in the Economics Department at Fairfield University, where they share responsibility for the introductory and intermediate economics courses. Student's comment illustrates that they were apparently not reaching their students in ways that achieved their goals: developing students' abilities to understand economic…

A disturbing concern that has been expressed by academic economists is the low interest in economics as a major, as evidenced by the declining enrollment in most of the economics departments in American colleges and universities. Though some college and university economics departments are experiencing or had experienced a decline in their majors…