Instructions

Find some current or historical event and analyze it using the tools from class.

You should use multiple course concepts if you can. A single shift in D or S in a single market is not very interesting and does not tell me much about your mastery of course concepts. Try to tell the class an interesting story with multiple parts. Speculate a bit on effects beyond that one market. This speculation is an important way that researchers think of new research hypotheses. Make this a celebration of what you have learned. Aim to include concepts from at least three chapters.

Cause then effect

Most presentations will describe some event (a cause) that affects choices. The choices are not the event. Be clear about cause and effect.

Example:

Event (cause):
increased gas tax
Effect on choices:
reduction in supply of gas (or demand, depending on who pays the tax) and increase in demand for electric cars

Effect then cause

Sometimes, you can start with an observed effect—some data to explain.

For example, you might observe an increase in the number of economists studying issues related to aging and then explore what causes led to that outcome (this increase really has been happening in recent years).

As another example, you might have observed any of these during the first year of the pandemic and want to explain the change:

  • An increase in the number of offers on houses for sale
  • An increase in the price at which houses sold
  • An increase in rates of web searches for houses for sale
  • A decrease in the average time a house is up for sale

Caution

Do not go looking for economic news for a few reasons:

  1. In this class, economics is a way of approaching problems rather than a set of topics
  2. You must present your own analysis
  3. When reporters or business people say “shortage” or “supply”, they do not mean the same thing that economists mean

In past classes, most presentations that claimed there was a shortage were wrong. Shortages that persist for long are uncommon outside of crises (like the last two years). A reduction in supply is not a shortage. Shortages occur only when prices are “sticky” (slow to adjust). If you claim there is a shortage, you should be able to provide more evidence.

Last modified: Monday, 2 May 2022, 12:05 AM