DOES MORE CALCULUS IMPROVE STUDENT LEARNING IN INTERMEDIATE MICROECONOMIC AND MACROECONOMIC THEORY

Using a selection bias correction model with ordered probit, we estima te how a second semester of calculus affects students' grades in inter mediate economic theory. Selection bias correction is needed because s imilar aptitudes and interests often lead students to enroll and do we ll in both mathematics and economics. A sample of students enrolled in 49 classes of intermediate micro and 41 classes of intermediate macro is used to estimate the model. The results show a predicted payoff fr om a second semester of calculus of about one whole letter grade in in termediate micro, but no payoff in intermediate macro. (C) 1998 John W iley & Sons, Ltd.