What Cosmo Kramer Can Teach Us About Optimal Stopping Times,
2026
Rollins College
What Cosmo Kramer Can Teach Us About Optimal Stopping Times
Journal of Economics and Finance Education
The real option literature on investment provides insights into firms’ decisions to enter and exit markets. This literature emphasizes the role of fixed costs of entry, the salvage value of exit, and uncertainty. A major implication of this literature is that it is often optimal to wait. Nonetheless, since the overwhelming majority of this literature uses models with uncertainty, students are often unclear as to the role of each of these components in determining the value of the option to wait. In this paper, I explain the role of uncertainty and costs/salvage value by considering the question: “When is it …
Shifts In Supply And Demand And The Corresponding Changes In Equilibrium Price And Quantity: Explaining The Process,
2026
Rollins College
Shifts In Supply And Demand And The Corresponding Changes In Equilibrium Price And Quantity: Explaining The Process
Journal of Economics and Finance Education
Most textbooks are incomplete or potentially confusing in their treatment of the dynamic process resulting from a change in demand or a change in supply. While they are not incorrect in their comparative statics results, they can leave students unclear about the process involved. The authors suggest an approach that addresses the deficiency.
Teaching Collective Action Problems Without Contextual Bias: The Red/Green Simulation,
2026
Rollins College
Teaching Collective Action Problems Without Contextual Bias: The Red/Green Simulation
Journal of Economics and Finance Education
Collective action problems are at the heart of many economic issues. Often, students have trouble comprehending how society ends up with a less than optimal outcome, and may incorrectly assume that someone must want the outcome that occurs. Correcting this error is made difficult by the biases that students bring to these issues. The Red/Green simulation demonstrates the tension between self-interest and the social good in a context-free manner allowing students to see that these sub-optimal outcomes may not be desired by anyone, but instead can result from unhealthy systems of incentives.
Presenting Economic Sanctions In The Classroom: The Case Of Iran,
2026
Rollins College
Presenting Economic Sanctions In The Classroom: The Case Of Iran
Journal of Economics and Finance Education
The Iran Deal’ ended long standing sanctions levied against Iran by the United States, European Union and United Nations in 2015 for dismantling its nuclear program. This paper presents an approach to teaching economic models of sanctions, and applies it in the context of lifting Iranian sanctions. We start with a simple production possibilities frontier approach to analyzing sanctions, followed by welfare analysis of import and export restrictions on US and Iranian economies. The paper provides a presentation and links to useful resources that can be used by instructors teaching undergraduate courses in introductory economics, intermediate microeconomics and international economics.
Economics Of The World Beyond The Textbook: Two Methods For Teaching,
2026
Rollins College
Economics Of The World Beyond The Textbook: Two Methods For Teaching
Journal of Economics and Finance Education
Visiting historical sites, local markets, or businesses can help students in an economics class connect abstract ideas to three-dimensional realities. We relate our experience with two types of trips: one focused on regional history and one in which students visited representative businesses. With some guided questions, the students are able to identify the forces of supply and demand at work in their own lives and communities.
Dollars Per Pound Or Pounds Per Dollar? Using The Kumon Method To Increase Student Understanding Of Topics In International Finance,
2026
Rollins College
Dollars Per Pound Or Pounds Per Dollar? Using The Kumon Method To Increase Student Understanding Of Topics In International Finance
Journal of Economics and Finance Education
In this work I use the Kumon method in International Finance to help students become proficient on basic course topics. This lets them achieve a stronger foundation and allows them to focus on more complex course topics without struggling with the basics. Students improve their skills on the basic course topics using the Kumon-type worksheets. The majority agreed that the worksheets helped their overall understanding of International Finance.
What “The Simpsons” Can Teach Us About Sports Economics,
2026
Rollins College
What “The Simpsons” Can Teach Us About Sports Economics
Journal of Economics and Finance Education
This paper provides an insight into the teaching of economics. Using sport and The Simpsons one can do some of the heavy lifting when teaching the subject, as these topics generally engage students and provide ample analogies from which one can explore and discuss key economic concepts. The paper does not seek to provide a deep examination of the economics of sport, but merely to illustrate how The Simpsons and sport can be used to teach fundamental economic concepts.
The Influence That Time Costs And Money Costs Have On Work Incentives: An Application Of Childcare Subsidies,
2026
Rollins College
The Influence That Time Costs And Money Costs Have On Work Incentives: An Application Of Childcare Subsidies
Journal of Economics and Finance Education
When deriving an individual's labor supply curve, most labor economics textbooks ignore any monetary or time costs associated with working. However, students realize that this assumption is not realistic, particularly for working parents who have children in daycare. The author presents an analysis of how both monetary and time costs associated with working influences an individual’s reservation wage. Additionally the author compares how the aggregate supply of hours offered within a firm is influenced by that firm adopting a childcare subsidy benefit that either reduces the monetary costs or time costs associated with have a child in daycare.
Using Twitter To Improve Student Writing,
2026
Rollins College
Using Twitter To Improve Student Writing
Journal of Economics and Finance Education
The economics pedagogy literature concerning the use of social media in the classroom is rapidly growing. This paper adds to the literature by providing initial evidence of the potential impact of using Twitter to improve writing about economics. Writing assignments before and after a series of Twitter assignments coupled with prompt feedback are utilized. A Principles of Macroeconomics course and two sections of an Intermediate Microeconomics course from two different institutions are used in the analysis.
Textbook Confessions: Of Failures, Markets, And Government,
2026
Rollins College
Textbook Confessions: Of Failures, Markets, And Government
Journal of Economics and Finance Education
Most undergraduate students come into contact with an economics class only in passing. The textbook will thus be the basis for their economic understanding, and what is included in these books will have a large influence on how they view the workings of the overall economy. Guided by the Council for Economic Education’s Voluntary National Content Standards, we show that most textbooks cover more extensively market failure than government failure, or even the government role as protector of property rights. We believe a more balanced approach provides an accurate view of the role government should play in a vibrant economy.
Helping Students Crack Annuity, Perpetuity, Bond, And Stock Valuation Formulas,
2026
Rollins College
Helping Students Crack Annuity, Perpetuity, Bond, And Stock Valuation Formulas
Journal of Economics and Finance Education
Mainstream finance textbooks present valuation formulas of annuities, perpetuities, stocks, and bonds, but the texts seldom explain the story behind them, leaving students in the dark about why these formulas work. The aim of this paper is to illuminate the black box of these formulas, thus helping finance instructors and students truly understand them. Starting from the basic valuation principle, we can reach each of these seemingly daunting formulas via a few simple algebraic steps. When students reach their “Ah-ha” moment at the end of each derivation, it motivates them and subsequently boosts their interest and confidence in learning Finance.
Using The Fred Excel-Based Application To Improve Learning Outcomes In Economic Courses: From Student To Practitioner,
2026
Rollins College
Using The Fred Excel-Based Application To Improve Learning Outcomes In Economic Courses: From Student To Practitioner
Journal of Economics and Finance Education
This paper describes active learning strategies utilizing the recently developed FRED Excel-based application to bridge the gap between economic theory and empirics. The FRED Excel-based application permits students to collect, manipulate, and plot macroeconomic data within Excel. We propose using this application as a tool for students to test economic theories using real world data. We maintain that this learning-by-doing strategy is an effective way to improve learning outcomes in undergraduate economic classes. To illustrate the ease and benefits of using the FRED Excel-based application to support standard economic theories, we provide several sample assignments specific to an intermediate macroeconomics …
Discounting At The Spread And Growing Annuities: A Note,
2026
Rollins College
Discounting At The Spread And Growing Annuities: A Note
Journal of Economics and Finance Education
In this note, the relationship between the present value and future value of growing annuities using the “discounting at the spread” method is exhibited. In addition, the work of Hall (1996) is extended, demonstrating a calculator solution for the future value of a growing annuity.
A Graphical Approach To Teaching The Capital Asset Pricing Model (Capm) In Introductory Finance Courses,
2026
Rollins College
A Graphical Approach To Teaching The Capital Asset Pricing Model (Capm) In Introductory Finance Courses
Journal of Economics and Finance Education
The relationship between risk and return is necessarily an important aspect of introductory finance courses. The Capital Asset Pricing Model (CAPM) is generally taught as the cornerstone model for measuring expected return given systematic risk as measured by beta, the market’s risk-free rate, and the market risk premium. In this paper, I demonstrate a graphical method of building up to, and introducing, the concept of the CAPM. Students generally find this method to be intuitive and helpful in understanding the concepts of correlation, diversification, efficient frontier, risk vs return, and CAPM.
Art Of Econ: Incorporating The Arts Through Active Learning Assignments In Principles Courses,
2026
Rollins College
Art Of Econ: Incorporating The Arts Through Active Learning Assignments In Principles Courses
Journal of Economics and Finance Education
Research has shown that, at the principles level, economics education relies predominantly on lectures for teaching. Introducing differentiated teaching by leveraging active learning provides a way for economics educators to increase students overall understanding and to assess competency at a higher level. In this paper, we provide instructors with a range of active learning assignments with relatively low costs for all participants. These assignments utilize a variety of economics-themed creative projects, which require students to determine which information is essential, use economics language clearly and precisely, and create deliverables that engage the audience with classroom material using an innovative approach.
Predictors Of Success In An Online Undergraduate Core Course In Finance,
2026
Rollins College
Predictors Of Success In An Online Undergraduate Core Course In Finance
Journal of Economics and Finance Education
Because finance is a technically oriented business subject where competence in math and accounting plays a role in student success, we posit that technical knowledge, as proxied by math and accounting pre-tests, may predict success in an online undergraduate finance course. Since little or no lecture support is generally offered while taking an online course, students that struggle with math or accounting may have a greater challenge with the online format for a finance course. Accordingly, the purpose of this study is to evaluate the key determinants of success in an online core course in finance.
Finding The Efficient Frontier: An Exercise For Finance Students,
2026
Rollins College
Finding The Efficient Frontier: An Exercise For Finance Students
Journal of Economics and Finance Education
Finance textbooks and classroom instructors often show that the set of mean/variance efficient portfolios can be plotted on a graph with the outer edge forming a hyperbola. Our exercise does this on an Excel spreadsheet with realworld data from asset classes that students get to choose. The spreadsheet calculates minimum portfolio standard deviations, the minimum variance portfolio, and the mean/variance efficient portfolio. These values are all graphed in mean/variance space, resulting in the familiar hyperbola. Portfolio constraints can be inserted as well. Students learn how to construct efficient portfolios and the effects of constraints while using real-world data.
Simulation Of Binomial Trees For Exotic Option Pricing Using Excel,
2026
Rollins College
Simulation Of Binomial Trees For Exotic Option Pricing Using Excel
Journal of Economics and Finance Education
Option pricing can be presented in a variety of ways to students learning the subject for the first time, ranging from solution of the Black Scholes formula to approximations using Binomial trees. This article shows how an Excel spreadsheet may be used to illustrate the principle of risk neutral pricing through the simulation of random share price paths through the nodes of Binomial trees. By observing such random path prices through a binomial tree, the particular features of different types of options may be more readily appreciated. The method is illustrated with an application to plain vanilla calls and puts, …
Obtaining Consistent Corporate Valuations,
2026
Rollins College
Obtaining Consistent Corporate Valuations
Journal of Economics and Finance Education
In an introductory finance course, students are introduced to the concept of equity valuation in the form of the constant growth dividend discount model. In advanced courses they are exposed to additional valuation approaches such as free cash flows, adjusted present value, residual earnings and economic profit models. Unfortunately students do not have the opportunity to go beyond the calculations and learn the basic assumptions of each model that will lead to consistent valuations regardless of which model they choose. In this paper, we value an example company using 6 models that lead to identical equity values.
Using Student Produced Video Clips In Class,
2026
Rollins College
Using Student Produced Video Clips In Class
Journal of Economics and Finance Education
The author describes a teaching method using video clips of students teaching other students important economic concepts in class. This paper discusses the use of student- made videos to explain difficult concepts in economics. This simple exercise may offer an effective learning tool for a number of difficult concepts that students often struggle to master in the principles class.
