100 results
Muscle mass to visceral fat ratio is an important predictor of the metabolic syndrome in college students
- Robinson Ramírez-Vélez, Antonio Garcia-Hermoso, Daniel Humberto Prieto-Benavides, Jorge Enrique Correa-Bautista, Aura Cristina Quino-Ávila, Claudia Maritza Rubio-Barreto, Katherine González-Ruíz, Hugo Alejandro Carrillo, María Correa-Rodríguez, Emilio González-Jiménez, Jacqueline Schmidt Rio-Valle
-
- Journal:
- British Journal of Nutrition / Volume 121 / Issue 3 / 14 February 2019
- Published online by Cambridge University Press:
- 17 December 2018, pp. 330-339
- Print publication:
- 14 February 2019
-
- Article
-
- You have access Access
- HTML
- Export citation
-
This study aimed to evaluate the associations between the muscle mass to visceral fat (MVF) ratio and cardiometabolic risk factors in a large population of college students in Colombia and to propose cut-off points of this index for the metabolic syndrome (MetS). A total of 1464 young adults recruited from the FUPRECOL (Asociación de la Fuerza Prensil con Manifestaciones Tempranas de Riesgo Cardiovascular en Jóvenes y Adultos Colombianos) study were categorised into four groups based on their MVF ratio. Muscle mass and visceral fat level of the participants were measured using a bioelectrical impedance analysis. Cardiometabolic risk factors including lifestyle characteristics, anthropometry, blood pressure and biochemical parameters were assessed. The prevalence of moderate to severe obesity, hypertension and the MetS was higher in subjects in quartile (Q)1 (lower MVF ratio) (P <0·001). ANCOVA revealed that the subjects in Q1 had higher cardiometabolic disturbances, including altered anthropometry, blood pressure, muscle strength and biochemical parameters after adjusting for age and sex compared with young adults in higher MVF ratio quartiles (P <0·001). Muscular mass and physical activity levels were significantly lower in subjects with a lower MVF ratio (P <0·001). The receiver operating characteristic curve analyses indicated that in men the best MVF ratio cut-off point for detecting the MetS was 18·0 (AUC 0·83, sensitivity 78 % and specificity 77 %) and for women, the MVF ratio cut-off point was 13·7 (AUC 0·85, sensitivity 76 % and specificity 87 %). A lower MVF ratio is associated with a higher risk cardiometabolic profile in early adulthood, supporting that the MVF ratio could be used as a complementary screening tool that may help clinicians identify young adults at high cardiometabolic risk.
5.2 - The Keynesian Cross: KCross.xls
- from 5 - The Keynesian Model
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 147-152
-
- Chapter
- Export citation
-
Summary
The income-expenditure model had its debut in Paul Samuelson's 1939 paper on the multiplier-accelerator interaction theory of the business cycle; in that paper Samuelson draws the consumption function in expenditure-income space and determines equilibrium in the goods market at the point of intersection of the C + I line (with investment given autonomously) with the 45° line. Although it is confined to a mere two pages in Samuelson's paper, in less than a decade this model became the backbone of Samuelson's 1948 principles text.
– Amitava K. DuttQuick Summary
To access KCross.xls, visit
http://www.depauw.edu/learn/macroexcel/excelworkbooks/ISLMModel/KCross.xls
KCross.xls introduces the Keynesian Model. It emphasizes equilibration via unintended inventory changes and displays both the familiar income–expenditure diagram and savings equal to investment. The comparative statics properties of the model are explored, with G and T multipliers defined and computed.
Screencasts
• http://vimeo.com/econexcel/introkcross: introduction to the Keynesian Model stressing the concept of equilibrium and explaining how equilibrium Y is determined; shows how Solver can be used to find the equilibrium solution
• http://vimeo.com/econexcel/compstaticskcross: shows how changes in exogenous variables affect equilibrium Y; the concept of elasticity is applied, and Solver is used to find the change in G needed to move the economy to full-employment Y
• http://vimeo.com/econexcel/multiplierkcross: explains the concept of a multiplier and how the G and T multipliers depend on the MPC
Introduction
Since the eventual goal is mastery and understanding of the ISLMADAS Model, it makes sense to begin carefully and slowly with the goods market and Keynesian Cross diagram. Unlike the Solow Model, students will have a passing acquaintance from introductory economics of Keynesian income determination, but there are subtle and fundamental issues that must be clearly explained to build a strong footing on which to erect a complicated superstructure.
Common Problems for Students
The dual nature of Y as output and income is a confusing concept that merits careful explanation. It is easy to see that consumption (C) is a function of income, and, with investment (I) and government spending (G) given, this makes planned expenditures (PE) also a function of income since PE(Y) = C(Y) + I + G. But things start to break down when we solve the model by setting Y = PE(Y).
4.3 - Unemployment: Unem.xls
- from 4 - Macro Data with FRED in Excel
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 119-124
-
- Chapter
- Export citation
-
Summary
The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes.
– John Maynard KeynesQuick Summary
To access Unem.xls, visit
http://www.depauw.edu/learn/macroexcel/excelworkbooks/Data/Unem.xls.
Unem.xls explains how to use the FRED Excel add-in to access labor market data. The focus is on understanding basic concepts (such as the unemployment rate and the labor force participation rate) and becoming aware of a few labor market facts, including the current state of the economy. Additional topics include seasonal adjustment, sampling, and a simple job search model.
Screencasts
• http://vimeo.com/econexcel/unemintro: download data on the unemployment rate and plot it (with recession bars); other variables are downloaded and basic definitions are illustrated with the data
• http://vimeo.com/econexcel/unemgroups: download unemployment data on various subgroups and illustrate that the impact of unemployment on particular categories of people is extremely variable
• http://vimeo.com/econexcel/unemseasonaladj: Excel's PivotTable tool is used to find the monthly average in seasonally adjusted and not seasonally adjusted unemployment rates to show the seasonal pattern in the data
• http://vimeo.com/econexcel/unemlfpr: download data on the labor force participation rate and show the striking difference in men's and women's LFPR since World War II
• http://vimeo.com/econexcel/unemsampling: explains the idea of sampling variability by sampling from a hypothetical population in Excel and using simulation to show the results from many samples
• http://vimeo.com/econexcel/unemsearch: implements and solves a fixed sample search model with Monte Carlo simulation
Introduction
FRED provides access to data from the Current Population Survey (CPS), which is the source of labor market measures such as unemployment and labor force participation rates. It also includes international measures of unemployment rates, harmonized for equivalent definitions of job search, from the Organisation for Economic Co-operation and Development (OECD). Although not covered here, FRED also serves up data from Current Employment Statistics (CES, which is also known as the establishment survey) and the Job Openings and Labor Turnover Survey (JOLTS). Thus, the FRED Excel add-in offers easily available, timely information on a wide variety of labor market indicators.
Definitions of variables and details on household surveys are left to textbooks and lecture notes. The Intro sheet contains a minimal review, including a layout of the framework used to organize various states of labor market activity and a few basic definitions.
3.5 - Technological Progress: TechProgress.xls
- from 3 - The Solow Model
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 92-104
-
- Chapter
- Export citation
-
Summary
If a series of nuclear explosions were to wipe out the material equipment of the world but the educated citizens survived, it need not be long before former standards were reconstituted; but if it destroyed the educated citizens, even though it left the buildings and machines intact, a period longer than the Dark Ages might elapse before the former position was restored.
– Lionel RobbinsQuick Summary
To access TechProgress.xls, visit
http://www.depauw.edu/learn/macroexcel/excelworkbooks/SolowModel/TechProgress.xls
TechProgress.xls is the last of the workbooks in the Solow Model series. It includes population growth and exogenous, constant technological change. The EqPath sheet enables straightforward simulation to reveal clearly the steady-state solution in both efficiency and own units of per worker variables. Sophisticated comparative statics analyses, including transitional dynamics, can be easily performed. Real-world, Maddison data are used to calibrate and “test” the model. These applications are interesting, enjoyable, and thought provoking.
Screencasts
• http://vimeo.com/econexcel/techproginitial: introduction stressing imaginary (efficiency units) and real economies
• http://vimeo.com/econexcel/techprogcatchuptheory: catch-up growth and convergence; steady-state path as a magnet
• http://vimeo.com/econexcel/techprogcalibrateusa: Solow Model calibrated to match U.S. economic performance in the twentieth century
• http://vimeo.com/econexcel/techprogcatchupgermany: capital “destroyed” in the EqPath sheet and Germany's post–World War II performance replicated
• http://vimeo.com/econexcel/techprograndom: stochastic disturbance term added via NORMALRANDOM(mean, SD)
• http://vimeo.com/econexcel/techprogcompstatics: explores the effects of shocks in n, s, and g on the level and growth rate of steady-state y
• http://vimeo.com/econexcel/techproggoldenrule: the Golden Rule with g > 0; as g rises, the transition period gets shorter
• http://vimeo.com/econexcel/techprogconvergence: shows why CAGR as a function of log y is used; shows that the predicted relationship fails for large samples but is better for more similar countries
Introduction
Teaching and learning the Solow Model effectively and comprehensively is hard work. TechProgress.xls is the third (and final) step in a progression of models. Starting from the most primitive version of the model presented in KAcc.xls, a nonzero, constant rate of population growth was added in Population.xls.
5.4 - The ISLM Model: ISLM.xls
- from 5 - The Keynesian Model
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 157-168
-
- Chapter
- Export citation
-
Summary
Paul Krugman recently wondered how many macroeconomists still believe in the IS-LM model. The answer is probably that most do, but many of them probably do not know it well enough to tell.
– Olivier BlanchardQuick Summary
To access ISLM.xls, visit
http://www.depauw.edu/learn/macroexcel/excelworkbooks/ISLMModel/ISLM.xls
ISLM.xls implements the ISLM Model with an initial emphasis on the idea of a feedback mechanism and stresses the equilibration process. This workbook also enables a variety of comparative statics and multiplier analyses. Exploration of the properties of the model under various parameter values and elasticities is emphasized.
Screencasts
There are eleven screencasts organized into three groups:
Group 1: The first four screencasts are focused on the initial equilibrium and how it is obtained.
• http://vimeo.com/econexcel/islmintro: introduces the ISLM Model with a no-feedback version of the model where income does not affect money demand; when we make money demand a function of income, in the next screencast, the power and effectiveness of the IS and LM curves become immediately clear
• http://vimeo.com/econexcel/islmequilibration: shows how the goods and money markets are interconnected and how the intersection of IS and LM reveals the general equilibrium solution
• http://vimeo.com/econexcel/islmassetmarket: shows how an ISLM Model with asset market equilibration works by displaying an economy crawling along the LM curve to its equilibrium solution
• http://vimeo.com/econexcel/islmstability: shows how the slopes of the IS and LM curves determine if the equilibrium solution is stable under a cobweb equilibration process
Group 2: The next three screencasts are concerned with the mechanics of the model itself and how it functions.
• http://vimeo.com/econexcel/islmderive: derives the IS and LM curves as equilibrium solutions – for IS, Ye given r, and for LM, re given Y
• http://vimeo.com/econexcel/islmshifting: shows how to correctly shift curves depending on the placement of the exogenous variable; emphasizes that for shocks that do not affect the slope, the IS curve shifts left and right, while the LM curve shifts up and down
• http://vimeo.com/econexcel/islmcrowdingout: how multipliers are attenuated (lessened) when the model is extended because investment is crowded out as interest rates rise in response to attempts to stimulate the economy
Group 3: The final four screencasts are devoted to the comparative statics properties of the model, including applications and analysis of fiscal and monetary policy.
2.2 - Setting the Scene
- from 2 - Economic Growth Literacy
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 35-41
-
- Chapter
- Export citation
-
Summary
Though the land were allotted to all men in equal amounts, only the strong would be able to keep their share. Though goods were allotted to all men in equal amounts, only the clever would be able to preserve their share. The clever can make profits ten times their outlay, but the stupid cannot even retain their capital. If the sovereign cannot regulate (the making of profits), the people's living standards will vary over a range in which one has a hundred times as much as the other.
– GuanziEconomic growth literacy begins with the amazing fact that, when considered on a human history time scale, economic growth is brand new. Many of us take this knowledge for granted, but most students have never explicitly been made aware of this fact or considered its implications.
We manage to explain that economic growth is measured by the percentage change in real GDP per person but often fail to highlight how different the last few hundred years have been from everything that went on before. The rise of the market system and its ability to produce sustained increases in real GDP per person over long periods of time is a critical difference in kind and degree that must be brought front and center.
Depending on how you unveil it, you might get a gasp from Figure 2.2.1. This hockey stick graph is a great way to open any presentation on economic growth. It captures attention and provides a memorable image that reinforces the stunning discontinuity in output per person. It allows the very first message, something different happened suddenly and output per person exploded, to be the most important thing you communicate. Everything else is commentary, mopping up operations revolving around this most critical fact about the historical record.
Students are completely blind to the fact that, on a time scale of millennia, the market system has been in use only for several hundred years. Note that neither money nor trade (including bazaars and other marketplaces) is sufficient for a market system. Cuba has not one but two simultaneously circulating currencies and many stores with people paying with cash, yet everyone would agree that it does not have a market system.
1.4 - Summary
- from 1 - Charting in Excel
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 25-28
-
- Chapter
- Export citation
-
Summary
New in Microsoft Excel 2010, a sparkline is a tiny chart in a worksheet cell that provides a visual representation of data.
– Office DocumentationThis chapter manages to be both originally expansive and incredibly constrained. Economics professors do not bother to say anything about how to make a graph, so the slightest move in this direction is a radical departure, but there really is a vast world beyond the basic charts presented here. A course in macroeconomics is not the place to correct the graphing inadequacies of the typical undergraduate; however, it seems reasonable to insist on a properly labeled and titled time series chart. Naturally, because we are starting from zero, marginal returns are incredibly high, so anything we say about best practice graphing is bound to be valuable. In addition, the fundamental principles (especially minimizing chartjunk) do not change as we climb the ladder of data visualization techniques and methods.
For those interested in more advanced graphical techniques, here are three advanced tools for charting in Excel:
1. The Econ Chart Enhancer add-in, used to demonstrate recession shading, also has a variety of additional options, as shown in Figure 1.4.1. Any chart can be animated, and exponential growth curves can be fitted with growth rates displayed. These features, though reasonably self-evident, are demonstrated in the MaddisonData.xls workbook and Chapter 2. The add-in also has a zoom control (click the Zoomer button) that enables magnification of a portion of a chart. See the screencast at http://vimeo.com/econexcel/moneymsi for an illustration of how it works.
2. The Histogram Excel add-in, written by Frank Howland, is part of the suite of add-ins created for Barreto and Howland (2010). Excel's own histogram maker (included in the Analysis ToolPak add-in), putting the cart before the horse, requires the user to set up bins before making the histogram. The Histogram Excel add-in, shown in Figure 1.4.2, eliminates all of these gymnastics. The user simply selects the data (one or two variables), and the add-in does the rest. It is freely available at http://www.wabash.edu/econometrics.
3. New in Excel 2013, the Office Store (in the Apps tab) offers a wide range of powerful mapping apps. The free Bing Maps app allows associating data with geographical locations and supports dynamic visualization (displaying data based on user input).
2.1 - Introduction
- from 2 - Economic Growth Literacy
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 31-34
-
- Chapter
- Export citation
-
Summary
In fact, the main purpose of my work was not to provide a dataset for econometric work, but to encourage a younger generation to scrutinise the basic source material, try to improve its quality where it is weak, and to illuminate the underlying causes of growth and backwardness. This is why I took a lot of trouble to describe the sources and methods transparently.
– Angus MaddisonLiteracy can mean more than the ability to read. To be literate in a particular subject is to know and master a body of material. “The authoritative definition of economic literacy is knowledge of the theories that are held by professional economists” (Stigler, 1983, 65). Literacy in the subfield of economic growth is the fundamental pedagogical goal of the MaddisonData.xls workbook. The competency achieved by working through this material provides a launching pad for models and explanations of economic growth.
It takes repeated practice to attain literacy in every subject, but economic growth literacy is especially challenging because in addition to the historical record and facts, it requires numeracy – the ability to work with numbers and the mastery of fundamental mathematical tools. Thus, the workbook can be neatly divided into two parts. The first covers basic mathematical ideas such as the Rule of 70 and the interpretation of a log scale. The second focuses on historical trends and country comparisons. Both are embedded in the data to make the work interesting and thought provoking.
Maddison's Data
The data are provided by the monumental work of Angus Maddison, who spent his career painstakingly compiling measures of productivity and output across time and space. The MaddisonData.xls workbook contains Maddison's original data, downloaded from http://www.ggdc.net/maddison, and adds buttons, scroll bars, and list boxes to make it easy to use and explore.
The Doc sheet contains complete documentation to download Maddison's original Excel workbook, horizontal-file_02–2010.xls, which contains the Population, GDP, and PerCapita GDP sheets. In addition to the obvious addition of buttons, scroll bars, and macros to the workbook, blank cells in these three data sheets were filled with #N/A.
Excel uses #N/A (not available) to signify that a value could not be found.
Frontmatter
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp i-iv
-
- Chapter
- Export citation
Preface
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp ix-xii
-
- Chapter
- Export citation
-
Summary
My simple idea is to deliver fundamental content in an undergraduate macroeconomics course via Microsoft Excel® in a way that any economist can easily use for teaching purposes. My contribution is to provide a complement to conventional teaching that gives professors a different way to present macro models and incorporate data into their courses. The Excel files are meant for students, whereas the audience for this book is fellow professors.
A series of implications flow from the decision to target this book toward professors:
• A great deal of basic information can be safely omitted.
• Content is modular and stand-alone, so teachers can pick and choose what to use.
• Explanations are less detailed.
• Mathematics is used to present models compactly.
• Successful pedagogical practices or suggestions are included.
• Focus is placed on implementing models in Excel, including modifying the models.
• There is an emphasis on data sources and ways to quickly update data for class presentation.
• The writing style is more conversational because target readers are my peers.
The Excel workbooks and add-ins, available on the Web at www.depauw.edu/learn/macroexcel, are designed to be used by students with any textbook. Each Excel workbook contains links to screencasts: recordings of the computer screen, also known as a video screen capture, with audio narration. Each screencast is short, approximately five to ten minutes in duration, and walks the student through the steps needed to complete a task. All videos are grouped in a channel, available at vimeo.com/channels/macroexcel. A complete listing of all screencasts, organized by workbook, is available at www.depauw.edu/learn/macroexcel/screencasts.
This printed book describes each screencast, highlighting important points, as a way to minimize the time needed to choose which ones to use. It is recommended, however, that you view screencasts selected for your students to make sure you are familiar with the material, especially Excel functions and add-ins.
Although primarily designed with a course in intermediate macro in mind, many of the files and screencasts are useful for other courses. MaddisonData.xls, for example, could be used in introductory economics, development, and growth theory courses. Unem.xls could serve as a supplement for any labor economics textbook. Because the content is modular, the professor can pick and choose what, when, and how to use a particular Excel file or screencast.
1.1 - Introduction
- from 1 - Charting in Excel
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 11-12
-
- Chapter
- Export citation
-
Summary
[With a chart,] as much information may be obtained in five minutes as would require whole days to imprint on the memory in a lasting manner by a table of figures.
– William PlayfairThe contents of this book are meant to be modular – chapters can be used in any order, and individual Excel workbooks can be smoothly paired with any textbook. It could be argued, however, that this chapter on creating charts is a prerequisite to the study of economic models and data and, therefore, merits its leadoff status. A chart, also known as a graph, plot, or diagram, is so fundamental to the way economists visualize models and display data that it is often overlooked. Books present charts as if they were words, with no prior explanation, implicitly assuming that everyone knows how to read a chart. Using Excel to teach economics, with an emphasis on actively doing something rather than passively observing, forces explicit consideration of best practice methods for making a chart. Beginning with charting is an excellent way to introduce students to Excel and offers an opportunity to cover an ignored area of the undergraduate curriculum. The skills learned are sure to be used extensively in future courses and outside the classroom.
Students think that charting is trivial, but it is actually a complicated, serious matter, and there is, of course, a substantial literature on visualization and presentation of data. However, this is not a book about displaying data, so the optimal stopping point is reached quickly. A reasonable teaching goal is for a student to be able to produce a clear, basic graph in Excel. Be sure to emphasize that a guiding principle is to minimize chartjunk: irrelevant text, colors, or other visual elements that distract from and obscure the information being displayed. There is no doubt about it – a minimalist, simple approach is best.
Unfortunately, Excel is not helpful when it comes to creating a chart. It presents a bewildering array of chart types and options. Most students know that, in Excel, charts are created by selecting data, then clicking on a chart type button (or using the Chart Wizard button in older versions of Excel). Students need instruction, however, on exactly which chart type to use and how to best convey information.
3.1 - Introduction
- from 3 - The Solow Model
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 55-60
-
- Chapter
- Export citation
-
Summary
Before presenting the Solow model, it is worth stepping back to consider exactly what a model is and what it is for. In modern economics, a model is a mathematical representation of some aspect of the economy. It is easiest to think of models as toy economies populated by robots.…The best models are often very simple but convey enormous insight into how the world works.
– Charles JonesConsider this discussion, versions of which have been played out countless times in faculty offices around the world:
Professor: Welcome. How can I help you?
Student: I am having trouble with the Solow Model. It is confusing.
Professor: Yes, this is a difficult model. What exactly is the problem?
Student: I can see how increasing the rate of population growth (n) or the depreciation rate (δ) will hurt the economy –
Professor: The nifty canonical graph, also known as the Solow diagram [which the professor quickly sketches as in Figure 3.1.1], makes that obvious, don't you think? The line rotates up and steady-state capital per worker in efficiency units falls, so steady-state output and consumption per worker in efficiency units will also fall. Ta-da!
Student: I see that for n and δ, but g is where I get really baffled. Why would technological progress hurt the economy? Shouldn't an increase in g help, with more consumption as we produce more output with the same resources?
Professor: You are forgetting that the x axis on the canonical graph is capital per worker in efficiency units. That's not the actual economy –
Student: I know that. You emphasized this point a lot in class. But here's my question then: Where is the actual economy? How can I see what is happening there? Does the canonical graph have some secret trap door that reveals the impact of g on the economy itself, not in efficiency units but in actual output per worker?
Professor: Um, no, there are no secret trap doors. The canonical graph just provides an ingenious way to find the steady-state in a model with constant technological progress. That is all it does.
Contents
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp vii-viii
-
- Chapter
- Export citation
4.1 - Introduction: FRED.xla
- from 4 - Macro Data with FRED in Excel
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 107-111
-
- Chapter
- Export citation
-
Summary
Teaching economics is a very big responsibility these days. Right now [1983] is an especially difficult time to do a good job – particularly in teaching macroeconomics. That's partly because the subject itself is in a somewhat unsettled state and partly because there's always pressure to conform to current ideologies whether left or right, whether liberal or conservative.
– Robert M. SolowThere will always be controversy about content and delivery in teaching economics, but one thing we can all agree on is that we need to incorporate data into a modern macroeconomics course. It is obvious that we want our students to be aware of historical trends and the current economic environment. The days of presenting a time series that has not been updated for several years are long gone. Computers and the Internet have removed the constraint on obtaining and processing the latest measures of economic performance and financial statistics.
The Web offers an embarrassment of riches from which to obtain data. Many professors have favorite sources from blogs, aggregator sites, and government portals, such as BLS.gov, WorldBank.org, Penn World Tables, IMF.org, and GapMinder.org. We bookmark our favored sites and return to them to stay up to date and build examples for lectures and assignments. We share these sites with our students and sometimes create detailed instructions on how to use them.
One major problem with teaching students how to access data from a particular website is that it will not remain constant over time. Web redesigns and changing URLs guarantee that our instructions and handouts will be obsolete almost as fast as they are created. This constant evolution of the Web can also make updating an example or lecture handout a chore.
If several different sites are used, there is something to be said for exposing students to various interfaces, but the fixed costs of learning each site (especially if only occasionally accessed) can be quite high. For the professor who visits a site once a semester, it can be frustrating to have to remember how to navigate a site or figure out a new interface. For the student who has never downloaded data, the process can be challenging and time consuming.
4.4 - Inflation: Inflation.xls
- from 4 - Macro Data with FRED in Excel
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 125-129
-
- Chapter
- Export citation
-
Summary
After a long period in which the desired direction for inflation was always downward, we are now [2003] in a situation in which risks to the inflation rate can be either upward, toward excessive inflation, or downward, toward too-low inflation or deflation.
– Ben BernankeQuick Summary
To access Inflation.xls, visit
http://www.depauw.edu/learn/macroexcel/excelworkbooks/Data/Inflation.xls.
Inflation.xls explains how to use the FRED Excel add-in to review the historical record of inflation in the United States and to gain familiarity with inflation rate performance across countries. There is emphasis on computation in calculating the inflation rate as the percentage change in the price index and in using the price index to deflate nominal series. Four indexes, CPI, GDP deflator, the Fed's core inflation (PCE less food and energy), and chained CPI are examined.
Screencasts
• http://vimeo.com/econexcel/inflationusahistory: examines the historical record of price variability since World War II, as measured by the CPI, in the United States; the last episode of severe inflation occurred in the 1970s, and since then, the United States has enjoyed relative price stability
• http://vimeo.com/econexcel/inflationcollegetuition: downloads data from the BLS on the college tuition price index and compares it to the overall CPI; the results are dramatic – college tuition has risen twice as fast as overall prices – and it also makes clear that data from other sources can be merged in a spreadsheet with FRED downloads, which is a simple but powerful point
• http://vimeo.com/econexcel/inflationrealvalues: shows how to deflate a nominal series of postage stamp prices with a price index to create a series of real postage stamp prices in 2012 dollars; task uses data for minimum wage; long CPI series back to 1790
• http://vimeo.com/econexcel/inflationcomparing: downloads the CPI, GDP deflator, core inflation, and chained CPI; compares them and explains why we have competing price indexes
Introduction
As with GDP and unemployment, this section assumes a book or other background reading is providing definitions and explanations of price index theory. The Intro sheet provides a brief review via a listing of important concepts (which might form the basis of a lecture on inflation), and the CPI sheet describes the weights for the eight major categories in the CPI-U market basket, but the focus of the screencasts is primarily on practical computations and empirical data.
No mention is made of seasonal adjustment, which is covered in the previous section on unemployment.
Introduction:Why Simulation and Excel?
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 1-8
-
- Chapter
- Export citation
-
Summary
At this stage of the argument the general public, though welcome at the debate, are only eavesdroppers at an attempt by an economist to bring to an issue the deep divergences of opinion between fellow economists which have for the time being almost destroyed the practical influence of economic theory, and will, until they are resolved, continue to do so.
– John Maynard KeynesThis book is meant to be read and used by professors and economists. It assumes familiarity with economic theory and data analysis, so it will not make sense to a student or beginner. It is a manual for utilizing teaching materials that are available on the Web at http://www.depauw.edu/learn/macroexcel. It is assumed that the professor has a favorite textbook or readings that neither this book nor the online files will replace. Instead, delivery of content via Microsoft Excel will supplement and improve the teaching and learning process.
After explaining what is available and how to use it, this introduction presents a pedagogical argument in favor of simulation and Excel. Much of our teaching in economics is based on how we were taught and what we feel works, but advances in neuroscience make clear that many of our strategies and methods are flawed.
Excel Files and Screencasts
Professors who use these materials will have their students work with two types of resources: Excel files and screencasts (video recordings of the computer screen with audio narration). The Excel files include macro-enhanced workbooks that contain everything students need, including a ToDo sheet with links to screencasts and tasks (i.e., questions) to enable assessment. In addition, Excel add-ins, special files that extend the functionality of Excel, are provided.
Each chapter in this book lists the workbooks and screencasts available with a brief description providing a quick overview of the content and enabling professors to zero in on appropriate material. Each chapter begins with a section on common student problems and recommendations for ways to minimize confusion. The rest of the chapter is then devoted to more detailed description of the content in the workbooks and screencasts, answers to tasks, and suggestions for teaching.
The pedagogical principle behind the Excel workbooks and screencasts is that of strongly guided instruction via worked examples.
1.3 - The Shaded (Recession) Chart: RecessionChart.xls and EconChart.xla
- from 1 - Charting in Excel
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 19-24
-
- Chapter
- Export citation
-
Summary
(i). A strongly good graph shows us everything we need to know just by looking at it.
(ii). A weakly good graph shows us everything we need to know just by looking at it, once we know how to look.
– Howard WainerQuick Summary
To access RecessionChart.xls, visit:
http://www.depauw.edu/learn/macroexcel/excelworkbooks/Charting/RecessionChart.xls
RecessionChart.xls uses real crude oil price data to demonstrate how to use the Econ Chart Enhancer add-in to create a time series with shaded bars based on U.S. recessions. It also uses World Top Incomes data to replicate a chart on U.S. income inequality with shaded bars when the top 10% earn 45% or more of total income. Proficiency with basic charting in Excel is required.
The Econ Chart Enhancer add-in, filename EconChart.xla, available at http://www.depauw.edu/learn/macroexcel/exceladdins, enables enhancements to an existing chart, such as natural log scale (not merely Excel's base 10 log scale) and easily adding shaded bars for recession (or other) time periods. Download the add-in from the website and use the Add-Ins Manager to install it.
Screencasts
• http://vimeo.com/econexcel/howtoinstallexceladdin: shows how to install an add-in Excel via the Add-Ins Manager
• http://vimeo.com/econexcel/realcrudeoilpricechart: charts real crude oil price over time
• http://vimeo.com/econexcel/addrecessionbars: use the Econ Chart add-in to add recession bars to real crude oil price chart
• http://vimeo.com/econexcel/shadedbarswhenpricefalls: more practice with the Econ Chart add-in
• http://vimeo.com/econexcel/shadedbarsapplication: use the Econ Chart add-in to replicate a chart on income inequality
Introduction
Plotting a time series with shaded bars for recessionary periods has become a staple in financial literature. It is an effective way to show a second variable, such as the performance of the economy, while displaying more detail about a primary variable of interest. Unfortunately, it is not easy to create such a chart. Excel, however, can be tricked into doing it, and the complicated steps have been packaged into the Econ Chart add-in so the user can quickly add shaded areas to any chart.
Common Problems for Students
Installing the add-in requires use of the Add-Ins Manager. Students sometimes ignore all instructions and attempt simply to open the add-in file as if it were a conventional Excel workbook.
Software Requirements and Opening a Macro-Enhanced Workbook
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp xiii-xvi
-
- Chapter
- Export citation
-
Summary
The idea for the electronic spreadsheet came to me while I was a student at the Harvard Business School, working on my MBA degree, in the spring of 1978.
– Dan BricklinThe materials in this book will work on any Windows Excel version all the way back to 1997 (version 8). The workbooks and add-ins were created and are optimized for use with Windows Excel, but they can be accessed with a Macintosh computer. Microsoft removed Visual Basic from Mac Excel 2008 but reversed that decision in Mac Excel 2011, so this version should work. Solver in Mac Excel 2011 remains as temperamental as ever. The best solution for Mac users is to emulate Windows with software such as Parallels or Boot Camp. For on-campus users, accessing Excel from a server (see, e.g., VMWare's Horizon View client) is an easy solution for Mac users. This is my default method for enabling students with Macs and tablets to access the files.
To ensure that older versions of Excel can open these files, workbooks have been saved in “compatibility mode” (Excel 97–2003 Workbook) with the .xls filename extension. In Excel 2007 (version 12) or later, be sure to save the workbooks as .xls files or in the special “excel macro-enabled workbook” format, which carries the .xlsm extension. If you save the workbook as an Excel workbook with the .xlsx extension, the macros will not be saved, and functionality will be lost.
There was a substantial jump from Excel 2003 to Excel 2007. The interface was radically rearranged, with the Ribbon replacing menus and toolbars, while under the hood the charting engine was completely overhauled and the maximum size of a sheet was increased to 1,048,576 (220) rows by 16,384 (214) columns. The instructions in the files refer to Excel 2007 and later versions, using the Ribbon. The screencasts were made with Excel 2010 (version 14) and Excel 2013 (version 15), but other versions are similar enough that you can figure out what to do and the files will work on any version based on Visual Basic. (You probably did not notice, but Excel 2007, version 12, was followed by Excel 2013, version 14. It turns out that Microsoft decided to skip version 13 because it is an unlucky number.)
2 - Economic Growth Literacy
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 29-30
-
- Chapter
- Export citation
5.3 - The Money Market: MoneyMarket.xls
- from 5 - The Keynesian Model
- Humberto Barreto, DePauw University, Indiana
-
- Book:
- Teaching Macroeconomics with Microsoft Excel®
- Published online:
- 05 May 2016
- Print publication:
- 23 May 2016, pp 153-156
-
- Chapter
- Export citation
-
Summary
The bad news is that we have just been through a once-in-hundred-year credit tsunami that has had a devastating impact on the economy that will last for years to come. The good news is that macro/monetary economists and central bankers do not have to go back to the drawing board and throw out all that they have learned over the last forty years.
– Frederic S. MishkinQuick Summary
To access MoneyMarket.xls, visit
http://www.depauw.edu/learn/macroexcel/excelworkbooks/ISLMModel/MoneyMarket.xls
MoneyMarket.xls provides a quick explanation of the equilibrium interest rate (r) that is produced by money demand and supply. It also uses the Baumol–Tobin Model to explain why money demand is a function of the interest rate and income.
Screencasts
• http://vimeo.com/econexcel/mmintro: introduces the money market and uses Excel's Solver to find the equilibrium interest rate
• http://vimeo.com/econexcel/mmcs: does comparative statics in the money market by exploring the effect on the equilibrium interest rate when changing the money supply
• http://vimeo.com/econexcel/mmmoneydemand: uses a Baumol–Tobin Model to derive money demand from a comparative statics analysis (using the Scenario Comp Statics add-in)
Introduction
This workbook is a stepping-stone on the way to the ISLM Model. Instead of an exogenously given interest rate, money demand and money supply (real balances) determine the equilibrium interest rate, which is then fed into the investment demand function to determine the level of investment. To help students understand money demand, a Baumol–Tobin Model is implemented. The explicit display of a money management optimization problem is an excellent way to imprint the concept of money demand.
Common Problems for Students
Money is undoubtedly one of the most confusing variables in economics. In the Keynesian Model, it is easily tangled with government spending. After all, both are in units of currency and used as policy tools. For the same reasons, students mix up money with income and wealth. Distinctions between stocks and flows are too subtle to be noticed. It may be worthwhile to review or assign the Money.xls workbook to remind students of basic monetary concepts.
Beyond these fundamental definitional problems and the need to highlight getting the variables exactly right, there is the issue of the money market itself (by which is meant a chart with demand for and supply of money, not a real-world financial market for short-term securities).