A Multilinear Macro Economic Simulation

Abstract

The simulation presented in the first part of this paper was found to be of questionable value from a strictly econometric point of view. This does not mean, however, that it is of no value whatsoever. It still may possess some virtue as a computerized economics game. To be of value in this capacity it is felt that it must accomplish two essential things. It must first be able to spur an interest in the sometimes not too exciting subject matter of an introductory course. It must, in other words, abolish passive learning and promote an active involvement with the subject matter at hand. Secondly, and most importantly, it must demonstrate the dynamic interaction of important economic variables, the significance of which are too often lost in the chapter by chapter reading approach. If these two objectives were achieved it was felt that the student involved would have a better basic understanding of the field of economics.