Teaching pillar: simulation
4. Teaching Pillar: Interactivity
Most economic modeling makes assumptions to move from a starting point (the "if") to conclusions (the "then"). Interactivity provides learners with the ability to actively engage with models and with data in real-time, encouraging an exploration of assumptions and relationships to both build and reinforce critical thinking.
We can think about assumptions in economic models in layers. The outermost layers are those that allow particular models to function, such as the assumption in the classic supply and demand model that buyers and sellers have access to all relevant information for decision-making. As we move inward, we encounter assumptions that are increasingly fundamental, and in some cases, may not even be apparent. For example, a somewhat deeper assumption in the classic supply and demand model is that the buyers and sellers are actually different people (rather than, for instance, recognizing that people may buy the product that the business they work for produces). Even deeper is the assumption that individual buyers and sellers are the entities that have decision-making power (rather than, for example, organizations or institutions).
Although imagine economics may not attempt to explicitly test all of these assumptions, we think it is vital to acknowledge that they underpin many economic models in one form or another. And for the assumptions we do explore, interactivity—supported by simulation—is a key part of the process.
Beyond exploring assumptions, interactivity also provides a powerful tool to examine real-world economic data, which can sometimes be difficult to access and understand. By curating datasets and their presentation within interactive visualizations, we aim to provide insight into the functioning of real economies and some of the economic dynamics that play out in everyday life.