Does Calculus Help in Principles of Economics Courses? Estimates Using Matching Estimators

In: The American economist: journal of the International Honor Society in Economics, Omicron Delta Epsilon, Volume 56, Issue 1, p. 29-37

Abstract

This paper estimates the impact of taking a calculus course on student performance in principles of economics. The analysis takes into account the role of observable student characteristics that are likely to influence the calculus choice and the outcome in the economics course. Propensity score matching provides estimates of the treatment effect of taking calculus when there is selection on observable factors. Matching estimation and OLS both suggest statistically significant and positive effects of taking calculus before principles. The estimates of the impact of taking calculus from matching techniques are, in this case, generally similar to those obtained by OLS. The matching estimation suggests that the largest benefit of calculus may be for those less likely – but not the least likely – to take it.