Although there is an extensive methodological literature on the measurement of intergenerational income mobility, there has been limited research on the conceptual interpretation of mobility measures and the methodological implications of those interpretations. In this article, I focus on the three measures of mobility most frequently used in the…

It is now increasingly recognized that mathematics is not a neutral value-free subject. Rather, mathematics can challenge students' taken-for-granted realities and promote action. This article describes two issues, namely deforestation and income inequality. These were specifically chosen because they can be related to a range of calculus concepts…

The authors shed light on the original equipment manufacturer's strategic behavior in the duopoly aftermarket. The original equipment manufacturer, firm 1, captures via its foremarket price some fraction of the aftermarket consumer surplus, where that surplus is generated by consumption of its own and its competitor's aftermarket products. The…

Having returned to teaching the basics of pricing fixed-income securities after several years, the author recalls the difficulty students have in understanding the total return provided by fixed-income securities that are purchased at either a discount or premium from face value. This teaching note attempts to clarify the concept by suggesting…

The author shows how a quick approximation of the Lorenz curve's Gini coefficient can be calculated empirically using numerical data presented in cumulative income quintiles. When the technique here was used to estimate 621 income quintile/Gini coefficient observations from the Deninger and Squire/World Bank data set, this approach performed…

This paper argues that conflicting results from previous literature--related to the effect of economic conditions on child labor--derive from different income and substitution effects implicit in different types of income variation. We use agricultural shocks to local economic activity in Brazil (coffee production) to distinguish between increases…

How can teachers encourage their geography students to make sense of big numbers? The key math skills geography students need to apply are ones they learned long ago in fifth grade: estimation and place value. However, in order to recognize the size of a city, or strength of a country's per capita income, or value of a birth rate, they need…

We use exogenous variation in Social Security payments created by the Social Security benefits notch to estimate how retirees' use of prescription medications responds to changes in their incomes. Using data from the 1993 Wave of the AHEAD, we obtain instrumental variables estimates of the income elasticity of prescription drug use that are…

Principle of duality and numerical calculation of income and substitution effects under Hicksian Compensation are often left out of intermediate microeconomics courses because they require a rigorous calculus based analysis. But these topics are critically important for understanding consumer behavior. In this paper we use excel solver--a…

To align their financing strategies and fundraising efforts with their fiscal needs, charter school leaders need to know how much funding they need and what that funding will support. This cost estimation tool offers a simple set of worksheets to help start-up charter school operators identify and estimate the range of costs and timing of…

The paper proposes a simple methodology to estimate an affluence line that depends on the knowledge of the income distribution and the poverty line for a given population. The idea that poverty is morally unacceptable and can be eradicated through redistribution of wealth provides the grounds for the methodology. The line is defined as the value…

The Federal Family Education Loan (FFEL) program guarantees loans for postsecondary education to students and their parents at a limited interest rate. However, limiting borrowers' rates creates a danger that lenders will not be willing to participate in the program if their costs of financing and servicing the loans exceed the interest rates they…