mice.uni-muenster.de
1
Using MAKROMAT and ACTAS for
Undergraduate Teaching in Economics
Western Economic Association International
79th Annual Conference
Session 120A
Economic Simulations: Pedagogy and Assessment
2 July 2004, Vancouver
Dr. Stefan Kooths
Muenster Institute for Computational Economics
University of Muenster, Germany
MICE
Muenster Institute for
Computational Economics
University of Muenster
2
Computational Economics
CAL
(Learning)
Computational
Economics
CAR
(Research)
MICE
Muenster Institute for
Computational Economics
University of Muenster
CAS
(Real-life Solutions)
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
3
Outline
•
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
•
Macroeconomic Simulations with MAKROMAT

concept and content

look and feel
(Inter-) National Accounting with ACTAS
Interconnection via
COM-Interace

concept and content
Experience and
Assessment

look and feel
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
•
Interconnection via COM-Interface
•
Experience and Assessment
•

University of Muenster

Business and Information Technology School (BiTS),
Iserlohn
Outlook / Discussion
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
4
Outline
•
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
•
Macroeconomic Simulations with MAKROMAT

concept and content

look and feel
(Inter-) National Accounting with ACTAS
Interconnection via
COM-Interace

concept and content
Experience and
Assessment

look and feel
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
•
Interconnection via COM-Interface
•
Experience and Assessment
•

University of Muenster

Business and Information Technology School (BiTS),
Iserlohn
Outlook / Discussion
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
5
Concept and Content
•
Macroeconomic
Simulations with
MAKROMAT
MAKROMAT is a CAL-tool

supports user-driven computational experiments

different from training machines (CBT)
(Inter-) National
Accounting with
ACTAS
•
user-friendliness
Interconnection via
COM-Interace
•
integrated modeling framework
Experience and
Assessment
Outlook/Discussion
•
MICE
Muenster Institute for
Computational Economics
University of Muenster

core model is expanded layer by layer

users makes use of more and more options of the
underlying model shell
WYGIWYK
What You Get Is What You Know
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
6
Model Shell
technical
progress
labor input
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
fiscal policy,
private behavior
demand production = income
unemployment
multiplier processes
nom. wage
increase
real interest rate
monetary policy
nom. interest rate
nominal money supply
price
increase
real money supply
struggle
for income
real exchange rate
net foreign demand
net capital imports
nominal exchange rate
positive influence
negative influence
currency reserves
MICE
Muenster Institute for
Computational Economics
University of Muenster
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
7
Model Sections
Macroeconomic
Simulations with
MAKROMAT
•
government intervention
•
foreign trade
•
(Inter-) National
Accounting with
ACTAS
inventory effects (Multiplier-Accelerator)
•
financial sector / endogenous interest rate (IS-LM)
Interconnection via
COM-Interace
•
multiple money creation process
Experience and
Assessment
•
currency market with systems of fixed or flexible
exchange rates (Mundell-Fleming)
•
endogenous price level via profit maximizing firms or
via mark-up pricing (AD-AS)
•
labor market / endogenous wage rate
•
inflation processes (DAD-DAS, Phillips-curve)
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
8
Time Structure and Types of Analysis
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
•
default: 100 + 1 periods
•
maximum: 5000 + 1 periods
permanent or temporary disturbances
(deviation from equilibirum)
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
static
equilibrium
analysis
dynamics
comparative statics
MICE
Muenster Institute for
Computational Economics
University of Muenster
static
(equilibirum)
analysis
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
9
Look and Feel / Website
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
http://www.makromat.de
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
10
Outline
•
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
•
Macroeconomic Simulations with MAKROMAT

concept and content

look and feel
(Inter-) National Accounting with ACTAS
Interconnection via
COM-Interace

concept and content
Experience and
Assessment

look and feel
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
•
Interconnection via COM-Interface
•
Experience and Assessment
•

University of Muenster

Business and Information Technology School (BiTS),
Iserlohn
Outlook / Discussion
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
11
Concept and Content
Macroeconomic
Simulations with
MAKROMAT
•
backbone: real-world accounting systems
•
national accounting

ESA 1995 (Eurostat), binding framework for all EU
member countries

based on SNA 1993 (United Nations), therefore
many compatible systems can easily adopted (like
US NIPA)
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
•
international accounting

MICE
Muenster Institute for
Computational Economics
University of Muenster
BPM 5 (IMF, 1993)
•
cooperation with official data sources (destatis, IMF)
•
learning by using
free, structured and assisted access for beginners,
advanced students and experts
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
12
Handling Complexity
Macroeconomic
Simulations with
MAKROMAT
•
ESA: 20 accounts, 37 sectors, 80.000 transactions
•
user-tailored complexity

account compression
(vertical complexity)

sector consolidation
(horizontal complexity)

hiding transaction details
(depth complexity)
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
•
MICE
Muenster Institute for
Computational Economics
University of Muenster
ACTAS keeps the system consistent and allows for free
navigation and experimental accounting („do and see“)
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
13
Look and Feel / Website
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
A
C
T
A
S
2
0
0
2
http://actas.uni-muenster.de
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
14
Outline
•
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
•
Macroeconomic Simulations with MAKROMAT

concept and content

look and feel
(Inter-) National Accounting with ACTAS
Interconnection via
COM-Interace

concept and content
Experience and
Assessment

look and feel
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
•
Interconnection via COM-Interface
•
Experience and Assessment
•

University of Muenster

Business and Information Technology School (BiTS),
Iserlohn
Outlook / Discussion
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
15
COM-Connection
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
•
ACTAS  COM-Server
•
MAKROMAT  COM-Client
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
16
Outline
•
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
•
Macroeconomic Simulations with MAKROMAT

concept and content

look and feel
(Inter-) National Accounting with ACTAS
Interconnection via
COM-Interace

concept and content
Experience and
Assessment

look and feel
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
•
Interconnection via COM-Interface
•
Experience and Assessment
•

University of Muenster

Business and Information Technology School (BiTS),
Iserlohn
Outlook / Discussion
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
17
Experience
•
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
MAKROMAT

software backbone of macroeconomic tutorials at
the University of Muenster since 1991

1992-1997 special courses in the faculty computer
labs (funded by State Ministry of Science and
Education), 300 students per year

now integrated in standard tutorials, 800 students
per year

1992 German-Austrian Academic Software Award
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
•
ACTAS

1998-2000 development of ACTAS (funded by State
Ministry of Science and Education)

since 2000 regularly used in National Accounting
lectures at the University of Muenster, 100 students

2002 European Academic Software Award finalist
MICE
Muenster Institute for
Computational Economics
University of Muenster
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
18
Latest Assessment
Macroeconomic
Simulations with
MAKROMAT
•
Business and Information Technology School, Iserlohn
(private university of applied sciences)
•
4 lectures
(Winter term 2002/03 to Winter term 2003/04)
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
•
MICE
Muenster Institute for
Computational Economics
University of Muenster

Introduction to Macroeconomics

Business Cycle and Growth Theory

Financial Markets

Globalization
assessment by 18 students
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
19
Evaluation Results
 Students clearly like the idea of having computer programs
that help them cope with technical aspects of macroeconomics
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
3,5
MAKROMAT
ACTAS
3
2,5
2
Outlook/Discussion
1,5
1
0,5
0
Q1
MICE
Muenster Institute for
Computational Economics
University of Muenster
Q3
Q4
Q5
Q6
Q7
Q8
Q9
Q14/15
Q1: Do you regard the use of Computer-Assisted Learning (CAL) software
as useful? [very useful (1) ... not useful at all (5)]
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
20
Evaluation Results
 They understand the educational strategy of MAKROMAT and
ACTAS (Q5), but there is a risk that it expects too much (Q6)
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
3,5
MAKROMAT
ACTAS
3
2,5
2
Outlook/Discussion
1,5
1
0,5
0
Q1
MICE
Muenster Institute for
Computational Economics
University of Muenster
Q3
Q4
Q5
Q6
Q7
Q8
Q9
Q14/15
Q5: How well do MAKROMAT and ACTAS reflect the toolbox approach of
CAL? [very well (1) ... very badly (5)]
Q6: Did MAKROMAT and ACTAS demand more self-discipline than you could
cope with? [no, never (1) ... yes, very often (5)]
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
21
Evaluation Results
 The better the students’ performance, the more useful
MAKROMAT and ACTAS are for them.
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
3,5
MAKROMAT
ACTAS
3
2,5
2
Outlook/Discussion
1,5
1
0,5
0
Q1
MICE
Muenster Institute for
Computational Economics
University of Muenster
Q3
Q4
Q5
Q6
Q7
Q8
Q9
Q14/15
Q3: Generally speaking, do MAKROMAT and ACTAS meet your needs?
[absolutely (1) ... not at all (5)]
Q9: Do you feel that MAKROMAT and ACTAS helped you to become more
familiar with macroeconomics? [absolutely (1) ... not at all (5)]
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
22
Evaluation Results
 Good students are much more demanding when it comes to
CAL.
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
3,5
MAKROMAT
ACTAS
3
2,5
2
Outlook/Discussion
1,5
1
0,5
0
Q1
MICE
Muenster Institute for
Computational Economics
University of Muenster
Q3
Q4
Q5
Q6
Q7
Q8
Q9
Q14/15
Q7: How important do you regard the ability to run computational
experiments with CAL software? [very important (1) ... not imp. at all (5)]
Q8: Do you agree that MAKROMAT and ACTAS help to individualize the
material presented in the lectures? [absolutely (1) ... not at all (5)]
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
23
Outline
•
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
•
Macroeconomic Simulations with MAKROMAT

concept and content

look and feel
(Inter-) National Accounting with ACTAS
Interconnection via
COM-Interace

concept and content
Experience and
Assessment

look and feel
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
•
Interconnection via COM-Interface
•
Experience and Assessment
•

University of Muenster

Business and Information Technology School (BiTS),
Iserlohn
Outlook / Discussion
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
24
Future Projects
•
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
•
MAKROMAT

extension of the model shell (growth theory)

2nd edition of the MAKROMAT text book
ACTAS
Interconnection via
COM-Interace

further accounting systems
Experience and
Assessment

integration into text book
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
•
CAL in general

linking it to the existing literature

more systematic assessments
(Winter term 2004: evaluation by 800 students)
Using MAKROMAT and
ACTAS for Undergraduate
Teaching in Economics
25
URL
Macroeconomic
Simulations with
MAKROMAT
(Inter-) National
Accounting with
ACTAS
Interconnection via
COM-Interace
Experience and
Assessment
Outlook/Discussion
MICE
Muenster Institute for
Computational Economics
University of Muenster
http://mice.uni-muenster.de/presentations
(5 July 2004)