Introductory economics courses emphasize opportunity cost, comparative advantage and specialization to show the benefits of trade. We assert that this emphasize leads to erroneous student mindset that trade requires specialization based on comparative advantage. We test students who have been...

Following the 2007-09 financial crisis, mainstream finance theory was criticized for failing to forecast the market crash, which resulted in large losses for investors. Has our finance theory, which many consider an idealization that does not take reality into account, failed investors? Do we...

Financial literacy has become a topic of major importance for scholars and policy-makers. While recent evidence confirms positive effects of financial education, there is a call for more detailed information about instructional and learning contexts that motivates the search for good practices....