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2.1 - Introduction

from 2 - Economic Growth Literacy

Published online by Cambridge University Press:  05 May 2016

Humberto Barreto
Affiliation:
DePauw University, Indiana
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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 Maddison

Literacy 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.

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Chapter
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Publisher: Cambridge University Press
Print publication year: 2016

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References

The epigraph is from personal e-mail correspondence with Angus Maddison (1926–2010) on March 12, 2004. Visit http://www.ggdc.net/maddison to access his original home page and read tributes from students, colleagues, and friends.
Acemoglu, D. 2009. Introduction to Modern Economic Growth. Princeton University Press.
Broadberry, S. 2013. “Accounting for the Great Divergence.” VOX. http://www.voxeu.org/article/accounting-great-divergence.
Cryer, J. 2001. “Problems with Using Microsoft Excel for Statistics.” Paper presented at the 2001 Joint Statistical Meetings. Cryer correctly castigates Excel for its inconsistent and incorrect treatment of missing values. Although catchy and cute, “Friends Don't Let Friends Use Excel for Statistics” goes too far, in my opinion. It is better to know what the problems are and to avoid or fix them than to tell students not to use a product that is so dominant that they will almost certainly work with it every day.
Galor, O. 2011. Unified Growth Theory. Princeton University Press.
Hansen, J. R., II. 2002. “Review.” Journal of Economic Literature 40, no. 4: 1256–57. http://www.jstor.org/stable/3217342.Google Scholar
Maddison, A. 2007. The World Economy: A Millennial Perspective/Historical Statistics. OECD. http://www.theworldeconomy.org.
Stigler, G. J. 1983. “The Case, If Any, for Economic Literacy.” Journal of Economic Education 14, no. 3: 60–66. http://www.jstor.org/stable/1182859. Stigler concludes with a warning: “I do not despair of raising the economic literacy of the American public unless we fall prey to the superficial idea that all that is necessary is a course or two for every young American.”Google Scholar

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  • Introduction
  • Humberto Barreto, DePauw University, Indiana
  • Book: Teaching Macroeconomics with Microsoft Excel®
  • Online publication: 05 May 2016
  • Chapter DOI: https://doi.org/10.1017/CBO9781316451014.008
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  • Introduction
  • Humberto Barreto, DePauw University, Indiana
  • Book: Teaching Macroeconomics with Microsoft Excel®
  • Online publication: 05 May 2016
  • Chapter DOI: https://doi.org/10.1017/CBO9781316451014.008
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Introduction
  • Humberto Barreto, DePauw University, Indiana
  • Book: Teaching Macroeconomics with Microsoft Excel®
  • Online publication: 05 May 2016
  • Chapter DOI: https://doi.org/10.1017/CBO9781316451014.008
Available formats
×