Exploring Economic Models Using Excel

This paper presents examples of consumer theory concepts that can be explored more thoroughly, and made more accessible, when spreadsheet software is used as part of the intermediate-level economics classroom. Areas of application are utility functions, income and substitution effects, price indices, measures of welfare change, and the optimal saving rate. A web supplement is available on the Internet and includes spreadsheet examples pertaining to industrial organization and macroeconomics. The examples were chosen to stimulate awareness and discussion of the many classroom uses for four important Excel spreadsheet tools: three-dimensional graphs, iteration, Goal Seek, and Solver.