Using Bloomberg as a

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5 Νοε 2013 (πριν από 3 χρόνια και 10 μήνες)

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Using Bloomberg as a
Teaching Tool in Economics


Hossein S. Kazemi


Associate Professor of Economics

Stonehill
College


8
th Annual Economics Teaching Conference

Orlando, Fl.


November 8, 2012


Motivation


Teaching Economics vs. science



engaging students


reinforcing the material




more in depth understanding of the material


better absorption of material


better retaining of material


improved assignments


improved test results


better real life understanding of economics


better internships and jobs


better skills at work


increased number of majors


happier administrators


happier book publishers



Typical Teaching Approaches


chalk and talk method


a good lecturer will capture students' attention


a good lecturer will attract more students


a good lecturer will keep students engaged


publisher supplied power point presentation for the text


forces the instructors to stay focused


minimizes the possibility of going on a tangent


Shallow


boring to students


boring to the instructor


did I say boring?





Review of the Literature



Out of 14 of the articles in this paper's literature review,
12 argue that use of technology helps.


the two that did not were based on the following


that students’ performance in virtual courses was inferior to that of students who took
live or ‘hybrid’ classes where face
-
to
-
face lectures were integrated with a variety of
online material.



A study of the effectiveness of web
-
based homework in teaching undergraduate business
statistics" did not find any significant difference between the performance of students
who had been assigned a variety of web
-
based homework and students who had been
assigned traditional textbook
-
based homework.





Summary of the Lit. Review


study author/s


title


technology used


principal findings


bottom line


yes or no




Table 1


Summary of Studies of the Efficacy of Technology in Teaching Economics

Study

Title

Technology

Principal Finding(s)

Does
Technolo
gy
Improve
Learning

Notes

Murray (1999)

Econometrics
Lectures in a
Computer
Classroom

Computer
Simulations:


Monte Carlo
methods

-

Discusses the benefits of use of
Monte Carlo in teaching Econometrics.
Concludes that there are caveats but
computer use is beneficial.



Yes

Some Caveats

Mark S. Walbert
and Anthony L.
Ostrosky(1997)

Using Mathcad to
Teach
Undergraduate
Mathematical
Economics

Computer
software for
Engineers:

Mathcad

-
Test scores 11% higher than scores
earned by students who did not use
Mathcad, an increase of more than one
letter grade



-

Mathcad could also allow the
instructor to cover topics or introduce
techniques that were formerly
considered too advanced.



Yes

The use of
Mathcad in a
one
-
semester
undergraduate
mathematical
economics
course.

Students in both
groups took
identical tests
and by
controlling for
study time, they
were able to rule
out the
suggestion that
increased time
on tasks raised
the test scores of
the students in
the Mathcad
section.

Table 1 Continued…


Summary of Studies of the Efficacy of Technology in Teaching Economics

Study

Title

Technology

Principal Finding(s)

Does
Technolo
gy
Improve
Learning

Notes

William E.
Becker and
Michael
Watts(2001)

Teaching Economics at the
Start of the 21st Century: Still
Chalk
-
and
-
Talk

Chalk
-
and
-
Talk

-
Economists use passive
teaching techniques and this
may be causing decrease in
enrollment in economics
courses.

-

Economists have not
adopted active teaching.







Saunders
(1998)

Learning Theory and
Instructional Objectives



-

New learning (with
technology) is more efficient
if linked to material
students have previously
learned.

Yes



Salemi (2002)

An Illustrated case for active
learning



-

A strong case for active
learning techniques by
outlining numerous benefits
that stem from their
inclusion in the classroom.
He gives an example of
active learning. Active
learning is neither a panacea
nor a free good. In their
experience, it is a strategy
through which students gain
lasting understanding of
important economic
concepts.



Yes



Table 1 Continued…


Summary of Studies of the Efficacy of Technology in Teaching Economics

Study

Title

Technology

Principal Finding(s)

Does
Technology
Improve
Learning

Notes

Hawker(1986)









Heid(1988)







Judson(1988)



The effects of replacing some
manual skills with computer
algebra manipulations on student
performance in business calculus



Resequencing skills and concepts in
applied calculus using the
computer as a tool



Effects of modified sequencing of
skills and applications in
introductory calculus

Computer
Algebra
Manipulations





Computer

Found evidence that
students using
computer algebra
systems perform as
well as or better than
students in traditional
business calculus
courses.



Yes



Palmiter
(1991)

Effects of computer algebra
systems on concept and skill
acquisition in calculus

Computer
Algebra
Systems

Empirical results
indicated that students
who used the
computer algebra
system scored higher
on tests covering both
their conceptual
knowledge as well as
their ability to do
computations.

Yes

-

In a broader study, the performance of
university students taught engineering calculus
using a computer algebra system was compared to
the performance of students using paper
-
and
-
pencil computations. Both groups received lecture
as a primary means of instruction throughout the
semester. However, after five weeks, the
computer algebra system group also spent time
engaged in active learning with computer
-
oriented
labs.

Table 1 Continued…


Summary of Studies of the Efficacy of Technology in Teaching Economics

Study

Title

Technology

Principal Finding(s)

Does
Technolog
y Improve
Learning

Notes

Galbraith and
Pemberton (2001)

Digging Beneath
the Surface:
When
Manipulators,
Mathematics,
and Students Mix

Computer Software

-

Found a strong correlation
between confidence and
motivation after integrating
Maple into undergraduate
mathematics courses in
Australia.

Yes



Boyd, D.W. (1998)

On the use of
symbolic
computation in
undergraduate
microeconomics
instruction

Computer Software

-
Eight of the 10 questionnaires
characterized the experience
with Maple as helpful or positive.
A number of students
commented that Maple allowed
them to focus more on
economics and less on
mathematics.

Yes



Miles Cahill and
George Kosicki (2000)

Exploring
Economic Models
Using Excel

Excel Software

They don't have evidence for
efficacy but suggest that their
methods may lead to
improvements.





Owen, A. (2007)

Integrating
Computer
Applications Into
Economics
Electives

Computer
Applications

Some evidence has been
presented that suggests that
students enjoy economics
courses more when they are
taught in this way and are more
actively engaged in the material.

Yes



Table 1 Continued…


Summary of Studies of the Efficacy of Technology in Teaching Economics

Study

Title

Technology

Principal Finding(s)

Does
Technology
Improve
Learning

Notes

Paul G. King and
Ross M. LaRoe
(1991)

The Laboratory
-
Based
Economics Curriculum



The revised TUCE test results
showed significant increases in
student understanding of
macroeconomics in all sections.

Yes

An analysis of
variance test
indicates that
students in the lab
sections learned
more than students
in the non
-
lab
section. The F
statistic shows a
significant
difference between
the lab and non
-
lab
sections at the
recognition level,
but not at the
explicit level.

Kendrick,
Mercado and
Amman (2006)

Computational
Economics: Help for
the Underestimated
Undergraduate



Provide examples from a number of
fields of economics and discuss how
they can be used to develop
opportunities for students to learn
about and then modify these
computational models.





Table 1 continued…

Summary of Studies of the Efficacy of Technology in Teaching Economics

Study

Title

Technology

Principal Finding(s)

Does
Technology
Improve
Learning

Notes

Elliott (2003)









Using a personal response
system in economics teaching







-

reported improvement in students


performance
and in their enjoyment of lectures after introducing
a Personal Response System.

Yes



Brown and
Liedholm (2002)

Can web courses replace the
classroom in principles of
microeconomics?

Web
Technology

found, however, that students


performance in
virtual courses was inferior to that of students who
took live or

hybrid


classes where face
-
to
-
face
lectures were integrated with a variety of online
material.



No



Palocsay and
Stevens (2008)

Computational Economics: Help
for the Underestimated
Undergraduate

Web
Technology

A study of the effectiveness of web
-
based homework
in teaching undergraduate business statistics" did
not find any significant difference between the
performance of students who had been assigned a
variety of web
-
based homework and students who
had been assigned traditional textbook
-
based
homework.



No



Dufresne et al.
(2002)







Lass et al. (2007)

Using a personal response
system in economics teaching



Teaching with technology to
engage students and enhance
learning

Web
Technology

-

The effect of web
-
based homework on test
performance in large enrollment introductory
physics courses



found that online homework did lead to higher exam
performance.

Yes



Five Step Approach


Show students the tools in the discipline


Use Bloomberg to crunch the numbers and see how things
work at the technical level


Use Bloomberg to show the interaction between economic
news and financial markets


Have them follow up the lecture and Bloomberg presentation
with CNBC, WSJ, the Barron’s and the Economist


Have them produce a report that highlights what they have
learned and its connection with what they have seen and read
in the media


Courses where Bloomberg used:


Bloomberg is used by the author in a series of Economics
and Finance classes over the course of the past 15 years
at four of the major Boston area colleges in business,
economics and school of management. Courses such as
Money & Banking, Macro Theory, Investments, Monetary
Policy, International Finance, Impact of News on
Financial Markets, Capital Markets and Investments,
Investments & Portfolio Analysis, Money & Financial
Markets, Fixed Income Analysis, and Portfolio
Management.

Examples of How to Use Bloomberg


Effect of QE on Equity Markets


Equity Analysis


Treasury Securities


Yield Curve


Fixed Income Analysis


Market Indexes and Volatility


Fed Funds Rate and Taylor Rule

Dow Industrial’s Response to QE1


Dow Industrial’s Response to QE2







Dow Industrial’s Response to Operation Twist

Figure 1.

Bloomberg Quote for Apple Computers Inc.

Source: Bloomberg Professional

November 7, 2012


Figure 3. Bloomberg Earnings Estimate for Apple Computers Inc.

Source: Bloomberg Professional

November 7, 2012


Figure 4. Beta for Apple Computers Inc.

Source: Bloomberg Professional

November 2, 2012







Figure 5.

Bloomberg Earnings Estimate V.S. Price for Apple Computers Inc.

Source: Bloomberg Professional

May 26, 2012



Figure 6.

Bloomberg Bollinger Bands for Apple Computers Inc.

Source: Bloomberg Professional

November 7, 2012








Figure 7.

Price Ratios for Apple Computers Inc.


Source: Bloomberg Professional

May 26, 2012



Figure 8. Price and Volume Movements for Apple Computers Inc.

Source: Bloomberg Professional

November 7, 2011
-

November 7, 2012




Apple’s 20% decline since it’s September 19
th

peak


Figure 9.

10
-
Day Intraday Price for Apple : Face Book Phenomenon

Source: Bloomberg Professional

May 14
-

May 25, 2012


Figure 10. Trade/Quote Recap for Apple Computers Inc.

Source: Bloomberg Professional

November 7, 2012



Figure 11. Relative Value Comparison for Apple Computers Inc.

Source: Bloomberg Professional

November 7, 2012





Treasury Bills


Treasury Notes


Treasury Bond


Treasury Inflation Protected Securities (TIPs)


Derivation of Yield Curve

Using Bloomberg to Present Treasury Actives
and Derive Yield Curve


Figure 12. Treasury Actives (PX1)

Source: Bloomberg Professional

November 7, 2012

Figure 13. US Yield Curve

Source: Bloomberg Professional

November 7, 2012



Figure 14. International Yield Curve

Source: Bloomberg Professional

November 7, 2012


Bonds: Pricing/Yield


bid/ask price


yield to maturity


accrued interest


reinvestment interest


street convention


duration


convexity

Figure 15. Treasury Actives

Source: Bloomberg Professional

November 7, 2012

Figure 16. Yield Analysis

Source: Bloomberg Professional

November 7, 2012

Figure 17.

Impact of News on Financial Markets

November 7, 2012


Figure 18.


Taylor Rule: Inflation/Unemployment Gap Model


Figure 19.

Taylor Rule: Stone & McCarthy Model






Figure 20.

Taylor Rule: Deutsche Bank Model



Challenges


Administrators


lack of support


poor understanding of Bloomberg capabilities


budgetary limitations


IT


lack of timely response when help is needed


slow bandwidth


rare internet connection interruption


Students


addiction to using
ctrl+c

and
ctrl+v


unwillingness to sub Bloomberg for the internet


Challenges
continued...


Instructor


teaching with a new technology is not easier


time consuming


requires revamping the entire course


have to be ready to do chalk
-
and
-
talk if any glitches


be prepared to hit the curve balls from technology
suppliers


Faculty Peers


the biggest hurdle


unwillingness to sign on


unwillingness to learn new tricks


unwillingness to have their students trained


see it as too big of an investment