Economics Commons^™

On The Importance Of Teaching Real Estate In The Finance Curriculum: An Applied Project For Basic Finance Courses

Journal of Economics and Finance Education

Real estate is the world's largest asset class. It plays an important role in the economy as a whole and in the portfolios of many individuals around the world. However, most business and even finance students have little exposure to real estate concepts. This paper discusses the importance of real estate and presents a series of exercises that can be assigned in introductory finance classes. Through these exercises, students enhance their overall finance knowledge and learn concepts not usually covered by introductory textbooks, such as choosing a mortgage, refinancing decision, and house affordability.

#Econ1950: Integrating Twitter And A Learning Management System To Reach Students Outside The Classroom

Journal of Economics and Finance Education

A course-specific Twitter hashtag can be used to categorize tweets related to course material. Embedding a Collection of these tweets within a Learning Management System course page is an easy way to share this information with students. A guide to embedding a twitter feed within Moodle, Canvas, and Blackboard Learn is provided. Examples of how Twitter can be used to share information to students in a Macroeconomics course are provided. Student survey results indicate that most students agreed that the Twitter feed helped connect the course material to examples, was worthwhile, and stimulated their interest in economics.

Options Trading Strategies With Bloomberg: A Practical Guide For The Undergraduate Classroom

Journal of Economics and Finance Education

Today more business schools are investing in Bloomberg terminals to provide an experiential learning environment designed to better prepare students for industry. This paper illustrates how Bloomberg terminals can be incorporated in today's financial derivatives curriculum resulting in a merger between theory and practice. Through the illustration of six options trading strategies and the functionality of the Bloomberg System, both instructors and students will have a better comprehension of the uses and benefits of this system in the classroom today. In doing so, students will be better prepared for future careers in the finance industry.

Student Reaction To Online Learning During Covid-19

Journal of Economics and Finance Education

This paper explores student adaptation to online learning as a result of higher education courses moving into distance learning during the COVID-19 pandemic. We conduct surveys of students enrolled in fully asynchronous online Introductory Corporate Finance classes and find that student effort plays a significant role in student perception of online courses. We also find that those studying a lot are happy with online courses and will take more online courses after the pandemic, but others expect to enroll in fewer or the same number of online courses post­ pandemic.

Multi-Stage Stock Pricing Techniques For The Classroom

Journal of Economics and Finance Education

A process for multi-stage stock pricing is presented with evidence of improved classroom performance. The technique is expanded for more advanced class presentations and for potential fmtech applications by taking advantage of present value annuity and future value annuity due structures. Although advanced, the expanded technique can be performed iteratively on a financial calculator.

Metacognition And Performance: Evidence From Intermediate Corporate Finance Students

Journal of Economics and Finance Education

We examine whether metacognitive skills are important for finance students. We find that students with better metacognitive skills perform better in intermediate corporate finance courses. We find a statistically significant and positive relationship between students' achievements and their metacognitive awareness even after controlling for performance in the introductory finance course, major, time spent on assignments, senior status, and gender. We overcome the literature's concerns regarding capturing metacognitive abilities by focusing on students' low stakes self-learning assignments and utilizing metacognitive data collected by the McGraw-Hill LearnSmart platform. We find evidence that teaching metacognitive skills may benefit students in higher education.

Deal Or No Deal? Teaching The Concepts Of Risk And Decision Making Through An Experience Learning Activity

Journal of Economics and Finance Education

This paper introduces an innovative method to teach about risk and decision making through an engaging, interactive, and impactful experience learning activity. We simulate consequential decision making given uncertain outcomes by playing the TV game Deal or No Deal. The reflection and discussion allows students to observe how some decisions are behaviorally biased and can result in irrational decision making. Observing their personal behavior and reflecting on the root causes leads students to a deeper understanding of how humans make decisions given uncertain outcomes. Student engagement in the activity and positive student feedback suggests this method is effective.

The Simple Analytics Of An Egig Firm: Uber As A Microeconomics Course Exercise

Journal of Economics and Finance Education

This paper provides a microeconomic framework for what we call the eGig firm in the transportation market. The pedagogical value lies in seeing the interrelatedness of principles that students may see as compartmentalized into "consumer theory," "production and costs," "welfare economics," and so on. First, we develop a basic model of an eGig taxi firm, then address specific aspects of eGig transportation, including surge pricing and "machine learning." We also examine social welfare implications of the eGig paradigm. The model is not complex, yet it gives students a unifying framework for topics covered in the undergraduate microeconomics course.

Building An Excel Model Of Efficient Frontier To Analyze A College Foundation's Portfolio

Journal of Economics and Finance Education

Markowitz's Modem Portfolio Theory (MPT) has laid a foundation for modem financial economics. Teaching the principles of MPT is a necessary part for financial education. In this paper, we discuss how to guide students to build an Excel model of efficient frontier and apply the model to analyze portfolios in the real world. In an advanced finance course at SUNY Oneonta, Portfolio Management, students use Excel to construct a model that produces the efficient frontier for the assets held by SUNY Oneonta Foundation. They use the model to analyze the Foundation's portfolio, assess its performance, and propose their investment suggestions.

Modeling On A Budget: Automating A Financial Modeling Course Without Subscription-Based Data Sources

Journal of Economics and Finance Education

The cost of popular fmance databases puts them out of reach of many smaller institutions. This article shows how data freely available online can be integrated efficiently into a financial modeling course. We show how to import finance data from various sources automatically including financial statements, stock prices and returns, bonds, and options. We also provide example spreadsheets of financial modeling exercises fed by this data. This study can help improve student learning of difficult finance concepts and build spreadsheet skills. It can also help instructors create in-class exercises, assignments, and exam questions more efficiently.

Modeling Bond Immunization Outcomes With User­ Defined Functions

Journal of Economics and Finance Education

This paper presents a new assignment that teaches students how to create user-defined functions in Visual Basic for Application (VBA) to model bond immunization outcomes. Students learn how to create five user­ defmed functions that calculate bond price; duration; the number of bonds required for immunization; the future value of semi-annual coupon payments reinvested at six-month Treasury rates; and the "street" price of a bond at duration using the daily compounding method for accrued interest between bond payments. This assignment helps students understand the effects of monetary policy on bond immunization strategies and strengthens Excel skills, which is desirable to …

A Primer On Teaching Capital Structure Theory: An Intuitive Approach

Journal of Economics and Finance Education

An adequate understanding of the concept of the optimal capital structure choice of a company requires an intuitive understanding of that concept. The aim of this paper is to provide such an intuitive explanation. It discusses two methods of arriving at the optimal capital structure of a company. The first one is based on the effect of capital structure on the company's share price, and the second one is based on the effect of capital structure on the weighted average cost of capital. The paper notes that the two methods arrive at the same optimal capital structure for the company.

Using Amazon Prime Membership To Teach Compensating And Equivalent Variation

Journal of Economics and Finance Education

This paper uses indifference curve analysis to derive simple theoretical measures of the compensating and equivalent variation from joining (or canceling) a paid subscription service that provides access to lower prices, such as an Amazon Prime membership. The case provided here may be a useful tool for teaching an otherwise abstract concept in an undergraduate microeconomics course, as it extends the standard textbook approach to examine real-world questions of interest facing a well-known company. It is demonstrated that compensating and equivalent variation can serve as an important guide in the price-setting process under a business model of this type.

High Prevalence Of Cerebrovascular Calcifications And Clinical Correlates In Indigenous Bolivian Forager‐Horticulturalists: A Population‐Based Observational Study, Giuseppe Barisano, Bavrina Bigjahan, Grant Schleifer, Maria Ashna, Wendy J. Mack, M. Linda Sutherland, James D. Sutherland, Helena C. Chui, Meng Law, Thomas J. Fischbach, Andrei Irimia, Nikhil N. Chaudhari, Daniel K. Cummings, Paul L. Hooper, Jacob E. Aronoff, Ellen E. Walters, Daniel Eid Rodriguez, Raul Quispe Gutierrez, Jesus Bani Cuata, Kenneth Buetow, Caleb E. Finch, Michael D. Gurven, Jonathan Stieglitz, Gregory S. Thomas, Randall C. Thompson, Benjamin Trumble, Hillard Kaplan, Margaret Gatz

ESI Publications

Background

Methods

Bukan Hanya Tugas Istri: Pengaruh Penggunaan Kontrasepsi Suami Terhadap Kesehatan Mental Istri, Aldo Savira Adha Saputra, Elda L. Pardede

Jurnal Ekonomi Kependudukan dan Keluarga

Male participation in contraceptive use in Indonesia remains very low, while women continue to bear a disproportionate reproductive burden, including mental health impacts from contraceptive side effects. This study aims to examine the effect of husbands’ contraceptive use on wives’ mental health. The analysis utilizes data from the fifth wave of the Indonesia Family Life Survey conducted in 2014. Wives’ mental health is measured using the Center for Epidemiologic Studies Depression Scale - 10. The results of the binary logistic regression model indicate that husbands’ contraceptive use lowers the likelihood of wives experiencing depression. Additionally, being aged 25-49, having good …

Economic Outlook Of Battle Creek: Challenges And Opportunities, Iryna V. Lendel, Chloe Wieber, Sevrin Williams, Gerrit Anderson

Upjohn Institute Technical Reports

This report by the W.E. Upjohn Institute for Employment Research examines labor market dynamics in Battle Creek, finding that roughly 75 percent of jobs in the city are held by workers who live outside the city limits, with significant skill mismatches between city residents and local employer needs. This mismatch helps explain persistently low wages, elevated poverty rates, and high reliance on public assistance among city residents despite a strong manufacturing base and growing logistics, food processing, and machining sectors. Limited housing supply, inadequate public transportation, and childcare shortages further restrict residents’ access to employment. The report underscores the urgency …

Some Potential Issues With A Student Managed Investment Program At Small Liberal Arts Colleges: The Berry College Experience

Journal of Economics and Finance Education

This paper focuses on potential issues with student managed investment funds (SMIFs) with emphasis on small liberal arts colleges. A potential solution to alleviate some of these issues is proposed (a policy portfolio) and implemented. The initial results are presented and the subsequent influence of these results on club behavior is discussed.

Operating A Student-Managed Investment Fund In A Small Class Setting

Journal of Economics and Finance Education

The student managed investment fund (SMIF) at Midwestern State University was founded in 2010 and offers students an experiential learning opportunity. This article discusses its operational structure, investment policies, and strategies. It also discusses efforts to motivate students to run the SMIF as a productive team.

A Student Fund In A One-Hour Lab

Journal of Economics and Finance Education

First-hand experiences considering relevant research are used to examine the benefits and difficulties in implementing a studentmanaged investment fund through a repeatable one-hour lab format at a small regional state university. Implementing a student-managed fund in a lab format with fewer hours than a regular course reduces demands on faculty teaching load as well as on available hours in a student’s academic program. The multi-semester approach allows a stepwise progression of learning over multiple semesters, but its major difficulty is managing the mix of student skill levels.

Dave Ramsey’S Personal Finance: A Primer And Critique

Journal of Economics and Finance Education

Author and radio host Dave Ramsey advises millions of people on personal finance. Starting from the assumption that people are not good at maximizing their own utility, he recommends a rules-based approach that often directly contradicts conventional instruction in personal finance. This article shows how Ramsey’s recommendations follow from his behavioral assumptions and highlights some of his specific recommendations about financial products and services that are at odds with traditional personal finance. After making these contrasts, the article outlines implications for educators who, whether they agree with Ramsey’s approach or not, should understand the strengths and limitations of his approach.

Priming Effects Of Instructor-Expressed Judgments Of The Difficulty Of Quantitative Material On Student Performance And Perceptions

Journal of Economics and Finance Education

We investigate whether instructors teaching quantitative material can influence student performance through priming, a psychological phenomenon wherein exposure to a stimulus can influence memory and behavior. We first examine whether instructors can influence performance by priming students with statements stating that a quantitative problem has “Advanced” or “Basic” difficulty. We then investigate effects of priming on perceived difficulty. Priming does not affect performance but does affect perceptions. Compared to no priming, Basic priming reduces perceived difficulty, while Advanced priming increases female students’ perceived difficulty. Male students view Basic problems to be easier, but do not see Advanced problems as harder.

Traditional, Online, Or Flipped Classes–Which Do Students Prefer?

Journal of Economics and Finance Education

This paper describes the creation of a flipped classroom based on experimentation, student feedback, and an instructor’s impressions about learning outcomes. Based on 601 student responses to a survey administered between 2014 and 2018 to lower and upper level economics classes at a four-year public university, this paper finds that the majority of students preferred flipped to traditional as well as to 100% online classes. Other results indicate that students preferred watching lecture videos to reading textbooks or attending in-class lectures, and preferred weekly-structured assignments over dailystructured assignments. However, findings indicate mixed student preferences with respect to flipped mastery.

Using Cluster Analysis In Financial Services: A Teaching Case

Journal of Economics and Finance Education

A teaching case appropriate for students in finance, analytics, or related areas is presented for applying cluster analysis to the financial services industry. Based on a real case (modified for confidentiality), it presents students with a real-life scenario where cluster analysis is the appropriate tool to use for addressing a business problem. A credit marketing problem is presented, and incorporates the idea of predictive modeling within clusters. A top-down approach is taken to teach cluster analysis, with the business application and interpretation of results presented first, followed by the algorithm and other details.

Editor's Note

Journal of Economics and Finance Education

No abstract provided.

Teaching Margin Trading And Financial Leverage Together

Journal of Economics and Finance Education

Margin trading and financial leverage are typically taught separately from each other. In this study, we present a pedagogical approach with a dual focus on margin trading and financial leverage. We borrow the insights and tools from financial leverage in a corporate setting and apply them to margin trading as a special case of financing an investment using debt and equity. In addition to producing a simple and intuitive formula for performance calculations on a margin trade, our approach offers the benefit of improving students' understanding of how margin trading and financial leverage operate in general.

Excel Templates For Illustrating Tvm Calculations And A Financial Calculator With Associated Excel Functions

Journal of Economics and Finance Education

Time value of money calculations are illustrated through developing a timeline with cash flow graphics in Excel. The graphic is readily adjustable to different scenarios making it useful for multiple time value of money topics (e.g., NPV, MIRR, etc.). Further, a second graphic illustrates a financial calculator that also provides the associated Excel functions. Both graphics can be used in the live or virtual classroom and as a resource for students outside of the classroom.

Teaching Foreign Exchange Rates: A Primer

Journal of Economics and Finance Education

Given the importance of foreign exchange in introductory economics courses, this paper aims at providing a full and intuitive teaching of foreign exchange. First, there is a review of how the major current introductory texts offer somewhat inadequate treatment of the topic. Then, international transactions within a balance of payments framework are explained. Importantly, the market equilibrium exchange rate between the dollar and the euro is concurrently derived. Finally, the paper introduces, within a comparative static framework, changes in exchange rates from changes in major macroeconomic variables: the GDP of trading partners, domestic price level, and real interest rates.

The Cost Of Underperforming Investments

Journal of Economics and Finance Education

Underperforming investments change a firm's equity value, cost of equity, capital structure and cost of capital. We show how to correctly adjust the cost of capital and correctly value a firm with underperforming investments. The correct equity estimate equates the equity value derived from the Economic Profit Model with the equity used to estimate the WACC. We demonstrate how underperforming investments can reduce equity value even though earnings may increase. We confirm our results with the Residual Earnings Model and show that our approach for valuing a company with underperforming investments also works well with investments that increase equity value.

Advancing The Introduction To Both Narratives Of Aggregate Output: A New Model

Journal of Economics and Finance Education

There are two prominent theoretical perspectives on the determination of aggregate output: The general equilibrium perspective and the reactive, circular flow perspective that relates economic activity instigating further activity. The former replaced the latter as the dominant view within macroeconomics over 30 years ago, but the lack of general equilibrium models (i.e., dynamic stochastic general equilibrium models) suitable for undergraduates has kept such models out of the undergraduate curriculum. This paper presents a model that captures both narratives within the same model environment that makes their fundamental theoretical differences manifestly clear in a way that is accessible to undergraduates.

Teaching The Causes Of Great Depression To College Students: Evidence From History, Economics, And Economic History Textbooks

Journal of Economics and Finance Education

We survey the treatment of the Depression in college-level textbooks for courses in US history and economics. History textbooks emphasis on inequality, the stock market crash, and underconsumption as the primary causes does not reflect the consensus of economic historians. Introductory economics textbooks use the Great Depression as an example to illustrate macroeconomic concepts in ways aligned with the research consensus, which emphasizes declining aggregate demand and issues related to monetary policy and the financial system. History textbooks could be improved by focusing more on bank failures, the actions of the Federal Reserve, monetary deflation, and declines in autonomous spending.