The Edgeworth exchange diagram is a traditional tool of undergraduate microeconomic theory that depicts the mutually beneficial gains from voluntary trade. The authors take the analysis one step further. They identify the buyer's and seller's surpluses that accrue to both trading parties in the Edgeworth diagram. This is a straightforward exercise…

The authors shed light on the original equipment manufacturer's strategic behavior in the duopoly aftermarket. The original equipment manufacturer, firm 1, captures via its foremarket price some fraction of the aftermarket consumer surplus, where that surplus is generated by consumption of its own and its competitor's aftermarket products. The…

In this article, the authors explain the purpose and context for the 2009 International Symposium on Economic Education that was the source for articles on four nations with relatively developed systems for economic education: Australia, England, Japan, and Korea. The authors highlight several key comparisons from the four articles that appear in…

James Duesenberry's (1949) relative income hypothesis holds substantial empirical credibility, as well as a rich set of implications. Although present in the pages of leading economics journals, the hypothesis has become all but foreign to the blackboards of economics classrooms. To help reintegrate the concept into the undergraduate economics…

The author employs a regression discontinuity design to provide direct evidence on the effects of grades earned in economics principles classes on the decision to major in economics and finds a differential effect for male and female students. Specifically, for female students, receiving an A for a final grade in the first economics class is…

Many economics majors write a senior thesis. Although this experience can be the pinnacle of their education, publication is not the common standard for undergraduates. The authors describe four approaches that have allowed students to get their work published: (1) identify a topic, such as competitive balance in sports, and have students work on…

Using 1994-95 and 2002-3 data, the author (1998, 2006) has found that economics majors scored well on the LSAT[R]. These results are frequently posted on university Web sites by economics (and other) departments. The author, who updates the previous studies by using current 2007-8 law school applicants for the 2008-9 class of students entering law…

The authors show how the causes of and the gains from current account imbalances can be integrated into undergraduate economics courses using the same pedagogical tools that are used to explain comparative advantage and the gains from trade. A nonzero current account provides a mechanism for intertemporal trade, and a country has a comparative…

The author argues that the aggregate demand/aggregate supply (AD/AS) model is significantly improved--although certainly not perfected--by trimming it of the short-run aggregate supply (SRAS) curve. Problems with the SRAS curve are shown first for the AD/AS model that casts the AD curve as identifying the equilibrium level of output associated…

The author describes the design and implementation of one experiential learning assignment used in a principles of macroeconomics course. The learning exercise provides an active role for students and results in a relational experience that provides traditional undergraduate students with a frame of reference with which to interpret the impact of…

The trend in U.S. undergraduate economics degrees continued its upward trajectory in 2008-9. (Contains 3 tables.)

Although many students have some knowledge of patents, it can be difficult for them to understand the components of an innovator's decision-making process. Key issues, such as whether to patent or to use trade secrecy, how broad a scope to claim, and what to do in the event of patent infringement, can be difficult to grasp from a standard lecture.…

The author discusses several issues that instructors of introductory macroeconomics courses should consider when introducing imports in the Keynesian expenditure model. The analysis suggests that the specification of the import function should partially, if not completely, be the result of a simple discussion about the spending and import…

The authors analyze 19 semesters of student evaluations at Kansas State University. Faculty member fixed effects are sizable and indicate that among faculty members who teach both types of courses, the best principles teachers also tend to be the best nonprinciples teachers. Estimates that ignore faculty effects are biased because principles…

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…