IREE paper Revision 1 March 2014.pdf (207.36 kB)
Teaching the multiplier: the value of a quantitative approach
To create an engaging and motivating learning environment, we have developed software which is based on estimated parameters for the UK economy. The program allows students to both simulate the effects of economic policy on national income and its components as well as the flexibility to vary key parameters of interest in order to assess the impact on economic performance. In this paper we present the main features of the software and the model on which it is based. We discuss the potential uses of the software within a class-room context and consider two simulations. The first of these is a fiscal expansion designed to bring down unemployment and the second is an exogenous shock to consumption affecting the parameters of the consumption-income relationship. This paper advocates that students' understanding of theoretical models can be greatly enhanced by the addition of practical examples that can be used in lectures and tutorials as well as for independent study.
History
School
- Business and Economics
Department
- Economics
Published in
International Review of Economics EducationVolume
16Issue
PBPages
147 - 155Citation
TURNER, P. and WOOD, J., 2014. Teaching the multiplier: the value of a quantitative approach. International Review of Economics Education, 16 (part B), pp.147-155.Publisher
© ElsevierVersion
- AM (Accepted Manuscript)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Publication date
2014ISSN
1477-3880Publisher version
Language
- en