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ERIC Number: EJ893197
Record Type: Journal
Publication Date: 2010
Pages: 8
Abstractor: As Provided
Reference Count: 8
ISBN: N/A
ISSN: ISSN-0022-0485
Modeling Imports in a Keynesian Expenditure Model
Findlay, David W.
Journal of Economic Education, v41 n3 p306-313 2010
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 behaviors of the household, firm, and government sectors. The analysis also indicates that instructors who use certain import functions that are in some introductory textbooks will inadvertently impose restrictions on the model and potentially confuse students. The author examines several implications of the specification proposed by Robert Cherry (2001) and shows how the restrictions imposed by Cherry's specification make it difficult for instructors to present certain types of economic events and policies. The import function discussed here avoids these restrictions and allows instructors to present more easily certain types of examples. (Contains 11 notes.)
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Publication Type: Journal Articles; Reports - Evaluative
Education Level: Higher Education; Postsecondary Education
Audience: Teachers
Language: English
Sponsor: N/A
Authoring Institution: N/A