Beginning econometrics students often have an uneven preparation in statistics. The simulation gives students a clearer understanding of the behavior of OLS estimators.

Students often come to a principles course in economics with knowledge that is not correct. This example asks students to guess the percent of federal expenditures for different spending categories. They are then shown the actual percentages. The student results can be the source of a class discussion on why many of their initial estimates were wrong (as they generally are). Students can also create their own budget by changing the amounts spent in each category. Budget Explorer, implemented over the internet, uses data from the Public Budget Database of the White House Office of Management and Budget.

The Dynamic Integrated Climate Change (DICE) model assumes a single world producer must chose levels for three simultaneously determined variables: current consumption, investment, and greenhouse gases reduction. The model is freely available in both a GAMS and Excel version. DICE allows both science and economics instructors to integrate a sophisticated economic model of climate change into their courses. The simulation is for upper-division courses where students have some background in microeconomics. The principle developer is William Nordhaus at Yale University.

This site contains 21 modular, easy to use economic models, that are appropriate for class assignments or in-class demonstrations. Students can simulate all the standard models taught in most economics courses. EconModel uses the Windows OS. The simulations were developed by William R. Parke of the University of North Carolina at Chapel Hill.

In both macroeconomics and microeconomics principles courses, economists teach the virtue of markets as an allocative mechanism. But markets sometimes fail. This example allows students to simulate the market failure associated with a common property resource, a salmon fishery, and evaluate ways to control fishing. The simulation also shows the distributional results of different allocative mechanisms. The simulation was developed by Paul Romer at Stanford University and is available on the Aplia web site.

The Fair model web site includes a freely available United States macroeconomic econometric model and a multicounty econometric model. The models run on the Windows OS. Instructors can use the models to teach forecasting, run policy experiments, and evaluate historical episodes of macroeconomic behavior. The web site includes extensive documentation for both models. The simulation is for upper-division economics courses in macroeconomics or econometrics. The principle developer is Ray Fair at Yale University.

MarketSim helps students understand the functioning of markets by having them become consumers and producers in a simulated economy. There are two versions, both implemented over the internet. Jeremy's market is a consumer barter market. Adam's market introduces firms and money. MarketSim received funding from the National Science Foundation. The simulation is most appropriate for economics principles courses. The principle developers are Tod S. Porter and Kriss Schueller at Youngstown State University.

This example is an in-class market simulation conducted with paper cards assigning each student a buyer or seller role and a reservation price. This example is appropriate for both upper and lower division courses. Open Outcry Market was developed by Barry P. Keating at the University of Notre Dame.

Ricardian Explorer, implemented on the internet, simulates a Ricardian trade model with linear production technology and a CES utility function. The typical simulation has two countries and two goods. While Ricardian explorer was developed to supplement a course in international trade, it can also be used in intermediate microeconomics and microeconomic principles courses. The authors of the simulation are Alberto Isgut and Tanya Rosenblat of Wesleyan University.

This example engages students in a simple simulation of specialization and division of labor. All that is needed are staplers and some paper.

This is a simulation for a beginning econometrics course that shows students how heteroskedasticity biases an estimator and why the power of a statistical text is important.

The link between a set of taxes and income distribution is an important, but difficult, concept taught in economics principles courses. The Tax Game simulation requires a student to set tax rates for an income tax, a property tax, a wealth tax, a payroll tax, a corporate income tax, a sales tax,and an excise tax. The student can choose any rates he or she wishes, but must achieve a given revenue target.