Tax Policy and Business Fixed Investment During the Regan Era

We examine the impact of major tax legislation on business capital investment during the 1980-88 period. We detail the tax changes and imbed them into a neoclassical rental price of capital goods. We then use this rental price in two popular models of business fixed investment, a standard and a modified neo-classical model. We estimate these two models along with an accelerator model of capital investment. The models, in general, exhibit parameter instability regardless of fit. We then develop a model incorporating expected delivery lags for new capital goods and embed a forecasted output and the rental price of capital services. Again, parameter instability and fit are examined. Finally we conduct simulations of tax, price and output shocks. We conclude that the new model has parameter stability, and that the net effect of Reagan's tax policies was small

WHY LEARNING STYLES MATTER FOR STUDENT ACHIEVEMENT IN COLLEGE ECONOMICS

This paper explores the link between student achievement and student learning styles in a college microeconomics course, based on the Dunn and Dunn model of learning styles. The Productivity Environmental Survey (PEPS) is utilized to measure learning style preferences for twenty elements. Factor analysis is applied to reduce the multidimensional preferences to a smaller set of common factors that identify analytic, global or indifferent learning styles. The common factors are used as explanatory variables to measure the correlation between student achievement and their learning styles. The empirical methodology developed in this study also provides a test of the internal validity of the Dunn and Dunn model, the construct validity of the PEPS instrument and the predictive validity of the model. The authors explain how the results of the current research could be utilized to more generally enhance student achievement in the instruction of introductory economics and potentially other subject matter.

Tax Policy and Business Fixed Investment During the Regan Era

We examine the impact of major tax legislation on business capital investment during the 1980-88 period. We detail the tax changes and imbed them into a neoclassical rental price of capital goods. We then use this rental price in two popular models of business fixed investment, a standard and a modified neo-classical model. We estimate these two models along with an accelerator model of capital investment. The models, in general, exhibit parameter instability regardless of fit. We then develop a model incorporating expected delivery lags for new capital goods and embed a forecasted output and the rental price of capital services. Again, parameter instability and fit are examined. Finally we conduct simulations of tax, price and output shocks. We conclude that the new model has parameter stability, and that the net effect of Reagan's tax policies was small