The feedback method of teaching macroeconomics: is it effective?

Abstract

The conventional method of teaching macroeconomics to undergraduates relies on static graphs, an approach with documented pedagogical problems. In contrast, the feedback method uses causal loop diagrams and interactive computer simulation models. This paper describes the feedback method and four experiments that tested its effectiveness. Two experiments examined student preferences for methods of learning macroeconomics (e.g., using static graphs or a causal loop diagram), and a significant majority preferred the feedback method. In the third experiment, students showed more understanding of GDP when they had access to a stock-and-flow feedback diagram of the economy. In the final experiment, students using causal loop diagrams displayed more understanding of business cycle dynamics than those with access to a conventional aggregate supply-and-demand graph. Searching for feedback structure in the economy and using computer simulation to connect structure with behavior appears to be a promising method for learning macroeconomics.

Do feedback diagrams promote learning in macroeconomics?

“…Higher order mathematics is usually presumed to be a prerequisite for understanding dynamics in a complex system, as evidenced by the mandatory math training for upper level economics majors. Yet, the potential for students to understand economic dynamics prior to receiving advanced mathematics instruction is suggested by my experience teaching economic feedback processes to undergraduates and also by the results of three additional experiments (Wheat, 2007). 2 The experiment described in this paper provides additional support for my hypothesis.…”

Systems Education at Bergen

“…Wheat's use of SD to teach economics [36][37][38][39] was instrumental in gaining support from the Norwegian Centre for International Cooperation in Education so he could work with Ukrainian colleagues to develop SD modelling capacity within the finance department at the National University at Kiev-Mohyla Academy [40,41]. The three-year project funded four workshops in Kiev and enabled twelve graduate students and two assistant professors to spend a semester in Bergen.…”

Industrial Development Research by Systems Approach in NICs: The Case in Taiwan

“…From the system view, social and economic issues are usually related to the operation of many sub‐systems in society. Thus, it is necessary to analyse social and economic issues by the systems thinking methodology (Wheat, ). The conceptual theories, applications and methodology tools are shown in Figure .…”