Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329535 
Year of Publication: 
2023
Citation: 
[Journal:] EconomiA [ISSN:] 2358-2820 [Volume:] 23 [Issue:] 1 [Year:] 2022 [Pages:] 44-61
Publisher: 
Emerald, Bingley
Abstract: 
Purpose: The purpose of this paper is to contribute to the teaching of undergraduate macroeconomics. Design/methodology/approach: To suggest a roadmap, based on a consumption function, to be used by instructors willing to teach the Lucas Critique subject. Findings: Therefore, this paper proposes a lesson, which consists of three parts, to help undergraduates better understand the subject: (1) a grading exercise to bring the topic closer to students' lives; (2) a Keynesian and an optimal consumption function, followed by an example based on an unemployment insurance policy; and (3) two optional topics consisting of extensions of the optimal consumption function and some empirical results related to the Lucas Critique. Originality/value: The Lucas Critique influenced the evolution of research in macroeconomics, but it is not easily grasped in a classroom.
Subjects: 
Undergraduate teaching
Lucas critique
Consumption function
Policy evaluation
JEL: 
A22
B22
B23
B41
E21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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