The history of invention and innovation makes clear the importance of entrepreneurship as a driver of economic growth. This is especially important today, when we face the twin challenges of developing new economic energy sources while avoiding the threat of global warming. Thus, it is essential...

In 1996, the Bureau of Economic Analysis (BEA) changed the method used to calculate measures of real GDP from a Laspeyres or Paasche index to a Fisher ideal index, also called a chain-weight index. Even though this is a significant change in approach and has resulted in extensive revisions of...

The author offers a simple intuition that can be exploited to derive and to help interpret some canonical results in the theory of optimal commodity taxation. He develops and explores the principle that the marginal social welfare loss per last unit of tax revenue generated be equalized across...

Econometrics is an intellectual game played by rules based on the sampling distribution concept. Most students in econometrics classes are uncomfortable because they do not know these rules and so do not understand what is going on in econometrics. This article contains some explanations for...

The authors present a constructivist approach for teaching game theory, on the basis, in part, of Axelrod’s research approach. Using the Axelrod tournament multi-user system (ATMUS) software, students create strategies for a repeated prisoner’s dilemma (RPD). Later, these...

There is a difference between the private and social cost of preserving the past. Although it may be privately rational to forget the past, the social cost is significant: We fail to see that classical political economy is analytically egalitarian. The past is a rich source of surprises and...

The average score of economics majors on the Graduate Management Admission Test (GMAT) exceeds those of nearly all humanities and arts, social sciences, and business undergraduate majors but not those of most science, engineering, and mathematics majors.

Most states have adopted high school economics standards, but implementation efforts face two hurdles: evidence indicates that five or six college-level economics courses are needed for high school economics teachers and that stand-alone high school economics classes are more effective than...

An increasing number of academic institutions are considering changing to Web-based systems to take advantage of efficiencies in the collection of end-of-semester course evaluations. In considering such a change it is important that researchers determine whether it will affect mean evaluation...

The authors describe an in-class exercise in which students participate in an auction to buy US Airways. The exercise is based on events of late 1995, in which neither United nor American Airlines decided to bid for US Airways. Two teams of students participate in an English auction. Students...