The Classroom As Policy Laboratory: Using A Classroom Simulation To Experience Macroeconomic Policy,
2026
Rollins College
The Classroom As Policy Laboratory: Using A Classroom Simulation To Experience Macroeconomic Policy
Journal of Economics and Finance Education
This paper describes a classroom economic simulation. The simulation is similar to classroom experiments but is repeated, which allows for a less deterministic structure and gives students time to experience multiple roles. Students run the economy, from hiring their classmates to producing goods and buying them. Students also elect a class congress, which allows them to choose policies and experience the effects. As the simulation progresses, additional economic concepts and measurements are incorporated, including but not limited to GDP (real and nominal) unemployment, poverty, inequality, economic growth, investment, money supply, inflation and macroeconomic shocks.
Student Managed Investment Fund Performance: A Look At Equity Portfolio Data,
2026
Rollins College
Student Managed Investment Fund Performance: A Look At Equity Portfolio Data
Journal of Economics and Finance Education
Research on the performance of student managed investment funds (SMIFs) is needed in the literature. Using data from a SMIF at a university in Florida, this paper provides some evidence of this performance while noting the importance of active portfolio management within the SMIF. The results underscore two points: 1.) University officials can rely on students to manage actual investment monies, with proper oversight. 2.) Active management of the SMIF can add value. The goal of this paper is to encourage schools to begin SMIFs and help convince university officials that active portfolio management by students is a good idea.
Help Your Students Realize Their Retirement Dreams By Quantifying The Cost Of Procrastination,
2026
Rollins College
Help Your Students Realize Their Retirement Dreams By Quantifying The Cost Of Procrastination
Journal of Economics and Finance Education
In this paper we discuss the details of a dollar-a-day investment plan that professors can use when teaching a course in finance or economics. The goal is to explain the power of compounding and to illustrate the opportunity cost of procrastination. Our hope is that the narrative and examples will not only help students to understand these concepts but also motivate them to begin a modest investment regimen while in college. We also use the Shiller dataset to find an optimal look-back period that can be applied to making projections for the size of future retirement nest eggs.
The Influence Of Aggregate Demand Elasticity On The Federal Budget Deficit,
2026
Rollins College
The Influence Of Aggregate Demand Elasticity On The Federal Budget Deficit
Journal of Economics and Finance Education
This paper examines the implications of aggregate demand elasticity for the federal budget deficit when macroeconomic shocks occur. We obtain two results with the graphical analysis. First, and for an adverse change to short-run aggregate supply, the decrease in real gross domestic product and the resulting increase in the budget deficit is larger the more elastic is aggregate demand with respect to the general price level. Second, and when a negative shock to aggregate demand occurs, the decrease in real gross domestic product and the consequent increase in the budget deficit is larger the smaller is the price level elasticity …
Repeat After Me: An Experiment In Learning,
2026
Rollins College
Repeat After Me: An Experiment In Learning
Journal of Economics and Finance Education
Generations of students have stumbled over the distinction between moving along and shifting a demand curve. Simple verbal repetition seems to help cement this difference. In classroom experiments, students who stood and recited the concept aloud performed better on a subsequent exam question than other students. Moreover, the difference persisted onto the final exam even after controlling for differences in student ability and exam preparation. While other active-learning methods might produce similar results, verbalization requires almost no time or instructor effort. It takes only a few seconds and there is nothing to read or grade.
Perfectly Competitive Model And Finance: Changes In The Value Of The Firm During Competitive Adjustment To A Shift Of Demand,
2026
Rollins College
Perfectly Competitive Model And Finance: Changes In The Value Of The Firm During Competitive Adjustment To A Shift Of Demand
Journal of Economics and Finance Education
This paper explores the adjustment process of the perfectly competitive model from the perspective of finance theory and argues that finance theory (in unsophisticated form) is implicitly woven into the model’s adjustment process. Making this explicit allows students of elementary economics and finance to bring the two disciplines together.
Using Videoconferencing To Solve A Business Finance Problem: Challenges And Lessons Learned From A Transatlantic Experience,
2026
Rollins College
Using Videoconferencing To Solve A Business Finance Problem: Challenges And Lessons Learned From A Transatlantic Experience
Journal of Economics and Finance Education
This study presents a transatlantic project that requires business students to use videoconferencing to solve a real world business finance problem. We discuss the project’s design and delivery, the usefulness of videoconferencing in this context, and the challenges and lessons learned in the cross-cultural setting by instructors and students on each side of the Atlantic. A post-project survey reveals both German and U.S. students regard the transatlantic project to be a valuable experience, though the U.S. students view the project more favorably than did their German counterparts. The project also reveals some interesting transatlantic differences in higher education pedagogies.
The Term Structure Of Interest Rates And Unconventional Federal Reserve Monetary Policy,
2026
Rollins College
The Term Structure Of Interest Rates And Unconventional Federal Reserve Monetary Policy
Journal of Economics and Finance Education
The term structure of interest rates argues that a fundamental determinant of the Treasury yield curve is expected future short-term interest rates. In early 2013 it is possible to construct a predicted yield curve based on future expectations, and compare it to the actual yield curve. Due to the unconventional Federal Reserve policies that began in 2008, the actual yield curve lies well below that predicted by the term structure theory. Our research indicates that the cumulative impact as of January 2013 of the unconventional Fed monetary policies is to decrease the 10-year Treasury yield by about 80 basis points.
Gender-Based Trading: Evidence From A Classroom Experiment,
2026
Rollins College
Gender-Based Trading: Evidence From A Classroom Experiment
Journal of Economics and Finance Education
Is there a difference in the trading behavior of men and women? The question stems from research suggesting that men tend to be more overconfident than women, trade more and earn lower portfolio returns. Moreover, men appear to be less risk-averse than women. We present evidence from a student investment market simulation, Stock-Trak©, conducted in an upper division college finance course
Using Sports To Teach Finance And Economics,
2026
Rollins College
Using Sports To Teach Finance And Economics
Journal of Economics and Finance Education
Sustaining student interest in economics and finance is often a challenging task. One way to generate interest is through the use of examples that are interesting and relevant to the students. Sports provide many examples of finance and economics principles. In this paper, we provide seven sports examples that can be used to demonstrate various topics in and out of the classroom. These examples can be used either to introduce material or to assist more advanced students in gaining a deeper understanding of the subject matter. The examples have the additional benefit of providing memorable allegories to the business world.
A Note On Animating Financial Equations With Scientific Notebook®,
2026
Rollins College
A Note On Animating Financial Equations With Scientific Notebook®
Journal of Economics and Finance Education
Students of finance are often challenged to understand how financial equations respond to changes in key variables. All too often, the pedagogy offered these students includes usage of static graphs. Although there is a plethora of research in other disciplines showing animation provides superior learning outcomes compared to static images, the use of animation to illustrate financial relationships has received little attention in the financial education literature. This paper and the animations shown on the www.financeanimations.com website demonstrate Scientific Notebook’s ® ability to animate equations commonly taught in university introductory finance courses.
Using Microsoft Corporation To Demonstrate The Optimal Capital Structure Trade-Off Theory,
2026
Rollins College
Using Microsoft Corporation To Demonstrate The Optimal Capital Structure Trade-Off Theory
Journal of Economics and Finance Education
In this paper, we apply the trade-off theory of capital structure to Microsoft. We use data for bond ratings, bond risk premiums, and levered CAPM betas to compute the cost of equity and the weighted average cost of capital for Microsoft at different debt levels. This study shows the impact of increasing financial leverage on WACC. As financial leverage increases, the WACC decreases until the optimal debt ratio is reached, after which, the WACC begins to rise. At this debt ratio, the value of Microsoft will be maximized. Our results indicate the optimal debt ratio for Microsoft is 37.5 percent.
Differences In Student Evaluations From Hybrid And Traditional Courses,
2026
Rollins College
Differences In Student Evaluations From Hybrid And Traditional Courses
Journal of Economics and Finance Education
Hybrid courses contain online elements in combination with reduced in-class seat time. This study examines differences in student evaluations from hybrid and traditional sections of an introductory course in economic and business statistics. In our hybrid course, face-to-face lectures are replaced with online lectures and class periods are conducted as question-answer and practice sessions. We find strong evidence that students mark down evaluation scores in the hybrid versus traditional format. Markdowns occur across all dimensions of the evaluation instrument.
The Implementation Of A Terminal Master’S Program In Applied Economics,
2026
Rollins College
The Implementation Of A Terminal Master’S Program In Applied Economics
Journal of Economics and Finance Education
This paper examines the impacts of transforming a traditional master’s program into a professionally-oriented, terminal degree program in applied economics. Alumni surveys were conducted before and after the curricular innovation and the results indicate that the change in program provided high quality training that alumni judged to be more relevant to the post-graduate work environment. This case study illustrates that master’s programs in economics can benefit by implementing curricular structures that explicitly serve terminal degree-seeking students while, at the same time, provide elements of training that students destined for the Ph.D. are unlikely to receive in a doctoral program.
Twitter And The Public Choice Course: A Pedagogical Vignette On Political Information Technology,
2026
Rollins College
Twitter And The Public Choice Course: A Pedagogical Vignette On Political Information Technology
Journal of Economics and Finance Education
Given the paucity of undergraduate textbooks in public choice, instructors often look for innovative approaches and unique examples when teaching undergraduate courses in public choice economics. This essay offers a pedagogical vignette for undergraduate courses in public choice that deals with the technological development in political information represented by “tweeting.” Twitter offers mobile communications services that some representatives use to boost their stock of political reputation capital.
Minimizing Resource Costs Under A Gold Standard: From Warehouse Deposits To Deposit Banking,
2026
Rollins College
Minimizing Resource Costs Under A Gold Standard: From Warehouse Deposits To Deposit Banking
Journal of Economics and Finance Education
One of the criticisms of the gold coin standard is it entails more resource costs than other systems. Why after all should people have to carry around bags of gold for each transaction and pay to have so much of it stored in vaults? In this piece I will discuss the options of one famous lover of gold, Scrooge McDuck, and discuss how the storage cost criticisms of gold money are unwarranted. A system can easily evolve from one where people held coins to one where they loan their commodity via bankers and earn interest thereby eliminating the large need …
Npv Simulation: Technical Associates, Inc.,
2026
Rollins College
Npv Simulation: Technical Associates, Inc.
Journal of Economics and Finance Education
This paper presents a scenario analysis from an actual firm, one with a substantial level of sophistication. In this firm, input data is regularly created using probability distributions for sales estimates, cost estimates, tax considerations, and depreciation schedules. One limited scenario is presented in this paper - simplistic enough that students are able to concentrate on the mechanics of the simulation, but complex enough to reflect the degree of quantitative capability necessary in a financial analysis group within a company. The lack of a real-world example is thus solved in this paper, and sufficient guidance is given to direct a …
Brain-Type, Gender, And Student Success In The Principles Of Economics,
2026
Rollins College
Brain-Type, Gender, And Student Success In The Principles Of Economics
Journal of Economics and Finance Education
Studies of the impact of gender on student performance in the principles of economics yield ambiguous conclusions. Some studies find that women are less successful than men in the principles of economics, while others conclude that gender is inconsequential. Few, if any, scientific works find women’s performance better than men’s performance. These ambiguities arise because past studies have not considered the distribution of brain-types by gender. This paper addresses the question of which brain-types are more successful in the principles of economics and whether these brain-types can be associated with a particular gender.
Advancing The Credit Channel And Credit Rationing In The Undergraduate Curriculum: A Useful Model,
2026
Rollins College
Advancing The Credit Channel And Credit Rationing In The Undergraduate Curriculum: A Useful Model
Journal of Economics and Finance Education
This paper introduces a model of the lending decision that accounts for credit rationing behavior as it captures fundamental aspects of the credit channel of monetary policy. The model distinguishes between the credit channel’s bank-lending and balance-sheet effects in its representation of how different types of shocks influence lending. It is hoped that the model will facilitate and encourage greater attention in the undergraduate curriculum to the credit channel as well as credit rationing, the significance of both having been accentuated by the recent sub-prime lending crisis and the Fed’s expanded responsibilities in the financial markets.
Attracting “Otherwise Bright” Women To Economics: An Administrative Strategy For Small To Medium Size Economics Departments,
2026
Rollins College
Attracting “Otherwise Bright” Women To Economics: An Administrative Strategy For Small To Medium Size Economics Departments
Journal of Economics and Finance Education
This paper reports on a departmental strategy that targets students in the one-semester introductory economics survey course for non-majors by (1) aggressively marketing the economics degree, and (2) allowing high achieving students to waive the macroeconomic principles requirement for an economics degree. A detailed analysis of 602 student transcripts over a period of 33 years suggests that the waiver policy has not disadvantaged students in subsequent upper-level economics courses. On the contrary, women entering the economics program through the survey course have both significantly improved gender balance and the overall academic performance of economics students
