Teaching Theory is a Tough Sell, But Hands-On Data Exercised Can Help: An Example from Economic Growth (original) (raw)

SSRN Electronic Journal, 2007

Abstract

ABSTRACT How to teach technical material to undergraduate students with a limited mathematical background is a recurring concern for many teachers in subjects such as economics. One method that has proven successful for the current authors is to connect theoretically sophisticated material with actual data. This enables students to see how the theory relates to the real world, allowing for a deeper understanding of both. This paper develops a simple and insightful empirical application of the Solow growth model that can be used in an undergraduate macroeconomics or growth course. The exercise uses a dataset on perceptions of corruption levels by country to look at the relationship between corruption and the level and rate of growth of output per worker across 70 countries. The results allow students to see for themselves the impact that corruption has on actual countries while also improving their understanding of the distinction between level effects and long run growth effects.

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