Publication: Journal of Economic Education
Volume: Volume 23, No. 1
Issue: Winter 1992
Pages: pp. 5-16
Author(s): Norris A. Peterson (Pacific Lutheran University)
Title: The High School Economics Course and its Impact on Economic Knowledge
Abstract: There is common agreement that the high school economics course contributes to economic knowledge. Most econometric studies indicate that such training raises student scores by a relatively small amount, however. This paper shows that traditional estimates of the gain are biased because of aggregation and self-selection. A switching-regression model is employed to correct these biases; predicted gains in test scores rise by a factor of two to five times the traditional estimates. Such gains can be attributed to two factors--"better" students seem to be avoiding the elective economics course, and the course itself changes the marginal contribution of several attributes in determining test scores.