Building and using nonlinear simulations in Excel with an application to the specific factors model.

Excel simulation models have become increasingly common in the economics classroom, as their ability to combine numerical and graphical information has proved a useful support to traditional teaching methods. Recent efforts have tended to embed the solution within the Excel sheet, avoiding the need...

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Published in:Southern Economic Journal Vol. 89; no. 4; pp. 1242 - 1266
Main Authors: Gilbert, John, Koska, Onur A., Oladi, Reza
Format: Article
Published: Wiley-Blackwell Apr2023
Subjects:
Online Access:View this record in EBSCOhost
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      dt: Apr2023
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        10.1002/soej.12628
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      tig:
        atl: Building and using nonlinear simulations in Excel with an application to the specific factors model.
      aug:
        au:
          Gilbert, John
          Koska, Onur A.
          Oladi, Reza
        affil:
          Department of Economics and Finance, Utah State University, Logan Utah,, USA
          Department of Economics and Finance, University of Canterbury, Christchurch, New Zealand
          Department of Applied Economics, Utah State University, Logan Utah,, USA
      su:
        International trade
        Teaching methods
        Economics education
        Computer simulation
        Mathematical ability
        Numeracy
        Simulation methods & models
      sug:
        subj:
          International trade
          Teaching methods
          Economics education
          Computer simulation
          International Trade Financing
          Mathematical ability
          Numeracy
          Simulation methods & models
      keyword:
        Excel
        numerical simulation
        specific factors model
        Excel
        numerical simulation
        specific factors model
      ab: Excel simulation models have become increasingly common in the economics classroom, as their ability to combine numerical and graphical information has proved a useful support to traditional teaching methods. Recent efforts have tended to embed the solution within the Excel sheet, avoiding the need to use the Solver add‐in and allowing changes in the exogenous characteristics of the model to be instantly reflected in the numerical solutions and any associated geometry. While this is quite simple in small‐scale linear models, it is less straightforward in larger nonlinear models such as those that dominate the theory of international trade. We discuss various methods that can be used in building Excel simulations when it is not possible to solve the underlying model explicitly. We illustrate the ideas and describe our experiences along with a new simulation of the specific factors model.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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