Is Inverse Demand Perverse?

12 Pages Posted: 15 Feb 2013

See all articles by Carlo Russo

Carlo Russo

University of California, Davis - Department of Agricultural & Resource Economics; University of Cassino - Faculty of Economics

Navin Yavapolkul

University of California, Davis - College of Agricultural and Environmental Sciences

David Zetland

Leiden University - Leiden University College

Multiple version iconThere are 2 versions of this paper

Date Written: Aug 1, 2005

Abstract

Our non-representative sample of 245 undergraduates had significantly lower scores on questions presented in the standard heterogeneous form (i.e., Direct Demand equation and Inverse Demand graph) than on questions presented in non-standard homogenous forms. This result, which holds for advanced students, highlights one reason why 95 percent of students in economics principles classes do not enter the major - economics can be gratuitously mathematical. We argue that the Inverse Demand standard hurts rather than helps economics when it is used in early courses, but that professors have no incentive to change their methods. We recommend that early classes use either no graphs or a homogenous combination of graph and equation. The "standard" should be introduced later, when benefits outweigh costs.

Keywords: Economics teaching, economic education

JEL Classification: A22, B1

Suggested Citation

Russo, Carlo and Yavapolkul, Navin and Zetland, David, Is Inverse Demand Perverse? (Aug 1, 2005). Available at SSRN: https://ssrn.com/abstract=605523 or http://dx.doi.org/10.2139/ssrn.605523

Carlo Russo

University of California, Davis - Department of Agricultural & Resource Economics ( email )

Davis, CA 95616
United States

University of Cassino - Faculty of Economics ( email )

Cassino
Italy

Navin Yavapolkul

University of California, Davis - College of Agricultural and Environmental Sciences ( email )

Davis, CA 95616
United States

David Zetland (Contact Author)

Leiden University - Leiden University College ( email )

P.O. Box 13228
Den Haag, 2501EE
Netherlands

HOME PAGE: http://https://www.universiteitleiden.nl/en/staffmembers/david-zetland#tab-1

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