Introduction: Courses in applied microeconomics such as public finance, environmental/natural resource economics and industrial organization have traditionally relied upon data and case studies presented in texts and journal articles to convey important points about economic theories. Econometrics, the application of statistical methods to economic data, is typically taught using "real-world" data provided on a diskette accompanying the primary textbook or "cooked" data, that is, data made up by the textbook author to convey a specific point.
While information and data provided by textbook authors is a critical part of teaching students to think like a professional economist, students must also be able to locate economic information and manipulate economic data on their own. Until recently, most economic data was difficult to locate or was available only on computer tapes or in a hard-copy (book) format. As an instructor, it was unreasonable to expect students to locate and incorporate data from these sources into a classroom assignment, given the time constraints of a semester.
The amount of economic data and information available on the web, however, has changed what can be expected of students enrolled in applied microeconomic and econometric classes. Numerous federal, state and private agencies have established web sites with data sets that can be easily accessed and evaluated using existing statistical software; information on government programs such as the Oregon Health Care Plan and the Sulfur Dioxide Trading Program, administered by the Environmental Protection Agency, is also available.
Description: The goal of this project is to develop web-based assignments for the applied econometrics course, Introduction to Empirical Economic Literature, and several applied microeconomics courses: Introduction to Economic Analysis, Economics of Energy and the Environment, Economics of the Public Sector, and Industrial Organization.
The development of web-based applications for these courses represents a natural extension of previous work on course syllabi in the department. During the past two years, the following syllabi have contained links to relevant government agencies, data sources, and news organizations.
Introduction to Empirical Literature
web.reed.edu/resources/library/courses/econ311.sy.htmlEconomics of Energy and the Environment
web.reed.edu/resources/library/courses/econ351.sy.htmlEconomics of the Public Sector
web.reed.edu/resources/library/courses/econ348.sy.htmlIntroduction to Economic Analysis
web.reed.edu/resources/library/courses/econ201.sy.html
The feedback from students on the availability of these links is extremely positive and the impact on student research and classroom discussion is noticeable. Numerous colleagues at Reed and other campuses have suggested that their students use these course syllabi to help locate economic information and data.
The proposed assignments would build on the availability of these links by directing students to investigate questions by visiting specific sites. For example, students in Introduction to Economic Analysis could download the Consumer Price Index from the Bureau of Labor Statistics and the nominal price for a gallon of unleaded gasoline from the Energy Information Administration for the period 1970-1996. This data could be used to evaluate what has happened to the real price of a gallon of unleaded gasoline over time; results could be presented using Excel. A second part of the analysis would require students to investigate the relationship between the real price of a gallon of unleaded gasoline and average fuel efficiency of cars in the United States from 1970-1996. Graphing this information (using Excel) would show a relationship between the two variables that the students would be asked to explain.
It is anticipated that between 8 and 10 web-based assignments would be created for this course. The first assignments would be designed to introduce students to data available on the web and the manipulation and presentation of this data. Assignments toward the end of the course would require students to find data on the web that is appropriate for answering specific questions.
The applied microeconomics courses would have a combination of data analysis and case study assignments. For example, in Economics of Energy and the Environment, an assignment could focus on the Sulfur Dioxide Trading Program administered by the Environmental Protection Agency. Information available at the EPA web site includes historic and current prices for a ton of sulfur dioxide and the law (Clean Air Act Amendments of 1990) which created this program. This information could be combined with news stories focusing on the Sulfur Dioxide Trading Program (which is very controversial) to form the basis of a classroom discussion. Other case studies for this class could focus on recycling, the Endangered Species Act, and water pollution.
The number of web-based assignments for the applied microeconomics courses would range between 3 and 5 depending on the specific course. Industrial Organization (Economics 462), because of the subject matter and level, would probably have five assignments while our Introduction to Economic Analysis class would probably have three.
Impact: Approximately 140 students a year are enrolled in the courses in which these assignments are proposed. By far the course with the largest enrollment is our introductory course, Introduction to Economic Analysis. Although I have not given a specific example of a web-based assignment for this course, either basic data analysis and/or simple case studies would be appropriate. This course draws from a broad cross-section of students, so the potential impact would be quite large. Enrollment in Economics of Energy and the Environment and Economics of the Public Sector is typically around 15 students while Industrial Organization, because of its numerous prerequisites, usually has 5 students. Introduction to Empirical Economic Literature has been small (5 students), but is anticipated to increase once the requirement that economic and political science majors take this course or a similar course takes effect.
It is anticipated that these assignments, once developed, would become a permanent part of the economic curriculum. I would also work with my colleagues at Reed and other institutions to incorporate these, or similar assignments, into their courses.
Cost-Effectiveness: Student familiarity with data and information available on the web will make them far more effective and independent researchers. Although it will be difficult to quantify the "better use of my time" as a result of this project, I am certain that there will be an enormous benefit to both faculty and students as a result of these assignments.
Timeline: It is anticipated that this project will be completed between January 1, 1998 and the start of the fall semester in 1998. Since I am currently on sabbatical, it is anticipated that the bulk of the work would be completed between January 1, 1998 and June 30, 1998.