Using Microsoft Excel in Principles of Economics

Economic models must be presented to students in one or more of the following four ways: verbally, with tables, with algebraic formulations, or with graphs. Combining two or more of these adds to students' ability to learn the lessons we wish to teach. We have concluded that Microsoft Excel provides an excellent medium for combining the tabular, algebraic and graphic formulations of our models. Even verbal representation can be facilitated by the insertion of comments into cells and text boxes into the worksheets. Among its many advantages, it allows instructors great latitude in combining these modes of representation: in beginning courses, graphs and tables may be brought to the fore, with algebra hidden, while in more advanced courses, students may examine the mechanics of quite complex models within spreadsheets. The advantages of spreadsheets have been stressed (Cahill and Kosicki, 2000, p. 770; Mixon and Tohamy, 1999, p. 4). This paper shows how spreadsheets can be used to help students learn the material in a Principles of Economics course. It does this by exhibiting a selection of worksheets that we have employed and describing how each worksheet is used in the course. Before looking at individual sheets, however, we briefly review the evolution of this project.

The Heckscher-Ohlin Model with variable input coefficients in spreadsheets

This paper describes the presentation of the Heckscher-Ohlin model of international trade using an Excel workbook. The model consists of a two-factor economy producing two goods. The production of each is represented by a Cobb-Douglas production function. Given the fixed supplies of the two resources, labour and land, the model demonstrates how competitive markets allocate the resources between two competing uses, cloth production and food production. Presenting this model with Excel allows instructors to illustrate production functions, the derivation of the production possibilities frontier, and the effect of prices on resource allocation, inter alia. It also allows the illustration of the effects of changes in technology, factor supplies, or product prices on economic outcomes. Perhaps more importantly, the use of Excel allows students access to a "live" study guide, within which they can replicate and extend analysis presented by the instructor. This provides a deeper understanding of the theory. At the same time, the students are becoming more familiar with the use of spreadsheets, developing a skill that will serve them well throughout their lives.

Are the Networks Biased? Calling States in the 2000 Presidential Election

This article presents an analysis of controversies arising in the 2000 presidential elections in the U.S. The first controversy was about the accusations that media networks called, or projected, a winner faster in those states won by Albert Gore than in those states won by George W. Bush. This accusation was investigated by estimating a Tobit model of the length of time between states\u27 poll closing times and times at which television broadcaster CNN had projected a winner. Results support the charge of media bias. After controlling for other factors that affect how quickly a state is called, states called for Gore were called 14 to 18 minutes faster than those called in favor of Bush