1 / 12

Developments in Economics & Business Education 1-2 September 2005

Developments in Economics & Business Education 1-2 September 2005. Using the Virtual Chancellor Simulation John Houston & Anne Gasteen Economics’ Research Group, Caledonian Business School, Glasgow Caledonian University j.houston@gcal.ac.uk a.gasteen@gcal.ac.uk.

moral
Download Presentation

Developments in Economics & Business Education 1-2 September 2005

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Developments in Economics & Business Education1-2 September 2005 Using the Virtual Chancellor Simulation John Houston & Anne Gasteen Economics’ Research Group, Caledonian Business School, Glasgow Caledonian University j.houston@gcal.ac.uk a.gasteen@gcal.ac.uk

  2. Using the Virtual Chancellor Simulation Context : Level Three Macro theory module (IS-LM-FE; DAD-SAS) But can be used at almost any level (incl. School) Web-based: http://www.virtual-worlds.biz/vwc/ (now reasonably reliable) Parameterized for the UK Economy ‘Black Box’ but free to use

  3. Menu Commands

  4. Quick Run [1] 1. Can change any combination of these four variables 2. Submit to the ‘Black Box’ …. or get back to the starting values

  5. Quick Run [2] • Increase basic rate of tax from 22% to 25% Net weekly effect on sample households Effect on key Macro aggregates

  6. Full(er) Run [1] • Can change: • Income Tax, National Insurance & Spending Taxes • Government Spending on : Defence, Education, Law & Order and Health • Base Rate

  7. Full(er) Run [2] Appears only to affect macro aggregates, but not households

  8. Full(er) Run [3] Tabular & Graphical Output

  9. Full(er) Run [4] Analysis of effects on the sample households

  10. Demo : 2005 Budget Measures Personal Allowance = £4,895 Income Tax Basic Rate = 22% Starting rate = 10%, Higher rate = 40%) National Insurance = 11% Between lower and upper earnings limits (£94 - £630 pw) above upper earnings limit: 1% VAT Standard Rate = 17.5% Reduced Rate 5% (8% in model)

  11. Demo : 2005 Budget Measures • Govt spending: • Public Order & Safety = £31bn => 82.35% increase • Defence = £28bn => 6.67% reduction • Health = £90bn => 20% increase • Education = £68bn => 13.33% increase • Basic Rate of Interest = 4.5% (reduction of 0.25%)

  12. Our use of VC at GCU • Three, one-hour supervised computer labs • Introduce - ‘Quick Run’ • Altering Direct & Indirect Tax Rates/Allowances • Altering Government Spending & Interest Rates • Students attempt exercises throughout, considering the impact upon: • Households (several representative types) • Macroeconomic Aggregates • Assessable Coursework • Replicate, as far as possible, the most recent Budget & Autumn Statement • Individually, or in teams, depending upon scope & abilities

More Related