IDEAS home Printed from https://ideas.repec.org/a/eee/ireced/v36y2021ics1477388020300323.html
   My bibliography  Save this article

Adam Smith and the not so invisible hand: A revision for the undergraduate classroom

Author

Listed:
  • Dupont, Brandon
  • Durham, Yvonne

Abstract

Students in introductory economics rarely get much exposure to historical ideas, but they often hear about at least one historical concept: “the invisible hand.” Unfortunately, what they learn about the invisible hand – at least as far as is evident in the leading undergraduate textbooks – is flawed, largely because it is removed from its historical context. In this paper, we describe recent research on Smith’s metaphor and suggest some simple ways for instructors to use it – informed by the context in which it was written and Smith’s original intent. We also describe some simple classroom experiments that aid in these discussions.

Suggested Citation

  • Dupont, Brandon & Durham, Yvonne, 2021. "Adam Smith and the not so invisible hand: A revision for the undergraduate classroom," International Review of Economics Education, Elsevier, vol. 36(C).
    • Handle: RePEc:eee:ireced:v:36:y:2021:i:c:s1477388020300323
    DOI: 10.1016/j.iree.2020.100205
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1477388020300323
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iree.2020.100205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel B. Klein & Brandon Lucas, 2011. "In A Word Or Two, Placed In The Middle: The Invisible Hand In Smith'S Tomes," Economic Affairs, Wiley Blackwell, vol. 31(1), pages 43-52, March.
    2. Frank, Bjorn, 1997. "The Impact of Classroom Experiments on the Learning of Economics: An Empirical Investigation," Economic Inquiry, Western Economic Association International, vol. 35(4), pages 763-769, October.
    3. Douglass C. North, 1991. "Institutions," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 97-112, Winter.
    4. William D. Grampp, 2000. "What Did Smith Mean by the Invisible Hand?," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 441-465, June.
    5. John Kenneth Galbraith, 1983. "The Anatomy of Power," Challenge, Taylor & Francis Journals, vol. 26(3), pages 26-33, July.
    6. Taylor Jaworski & Vernon Smith & Bart Wilson, 2010. "Discovering Economics in the Classroom with Experimental Economics and the Scottish Enlightenment," International Review of Economic Education, Economics Network, University of Bristol, vol. 9(2), pages 10-33.
    7. Paul J. McNulty, 1967. "A Note on the History of Perfect Competition," Journal of Political Economy, University of Chicago Press, vol. 75, pages 395-395.
    8. Vernon L. Smith, 1998. "The Two Faces of Adam Smith," Southern Economic Journal, John Wiley & Sons, vol. 65(1), pages 2-19, July.
    9. Hans Gremmen & Jan Potters, 1997. "Assessing the Efficacy of Gaming in Economic Education," The Journal of Economic Education, Taylor & Francis Journals, vol. 28(4), pages 291-303, December.
    10. Vernon L. Smith, 1962. "An Experimental Study of Competitive Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 70, pages 111-111.
    11. Paul J. McNulty, 1968. "Economic Theory and the Meaning of Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(4), pages 639-656.
    12. Mark Dickie, 2006. "Do Classroom Experiments Increase Learning in Introductory Microeconomics?," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(3), pages 267-288, July.
    13. Plott, Charles R, 1983. "Externalities and Corrective Policies in Experimental Markets," Economic Journal, Royal Economic Society, vol. 93(369), pages 106-127, March.
    14. Gavin Kennedy, 2009. "Adam Smith and the Invisible Hand: From Metaphor to Myth," Econ Journal Watch, Econ Journal Watch, vol. 6(2), pages 239-263, May.
    15. Gavin Kennedy, 2005. "Adam Smith’s Lost Legacy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-51119-4.
    16. Jerry Evensky, 1993. "Retrospectives: Ethics and the Invisible Hand," Journal of Economic Perspectives, American Economic Association, vol. 7(2), pages 197-205, Spring.
    17. Blaug,Mark, 1997. "Economic Theory in Retrospect," Cambridge Books, Cambridge University Press, number 9780521577014.
    18. Hirschman, Albert O., 1985. "Against Parsimony: Three Easy Ways of Complicating some Categories of Economic Discourse," Economics and Philosophy, Cambridge University Press, vol. 1(1), pages 7-21, April.
    19. James Stodder, 1998. "Experimental Moralities: Ethics in Classroom Experiments," The Journal of Economic Education, Taylor & Francis Journals, vol. 29(2), pages 127-138, June.
    20. Tisha L. N. Emerson & Beck A. Taylor, 2004. "Comparing Student Achievement across Experimental and Lecture-Oriented Sections of a Principles of Microeconomics Course," Southern Economic Journal, John Wiley & Sons, vol. 70(3), pages 672-693, January.
    21. Yvonne Durham & Thomas Mckinnon & Craig Schulman, 2007. "Classroom Experiments: Not Just Fun And Games," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 162-178, January.
    22. Nava Ashraf & Colin F. Camerer & George Loewenstein, 2005. "Adam Smith, Behavioral Economist," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 131-145, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edi-Cristian Dumitra & Iulia Maria Gandea, 2022. "Digitalisation-‘The Invisible Hand’ of Digital economy," Journal of Financial Studies, Institute of Financial Studies, vol. 13(7), pages 51-62, November.
    2. repec:fst:rfsisf:v:7:y:2022:i:13:p:51-62 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gerald Eisenkopf & Pascal A. Sulser, 2016. "Randomized controlled trial of teaching methods: Do classroom experiments improve economic education in high schools?," The Journal of Economic Education, Taylor & Francis Journals, vol. 47(3), pages 211-225, July.
    2. Tisha Emerson & Denise Hazlett, 2011. "Classroom Experiments," Chapters, in: Gail M. Hoyt & KimMarie McGoldrick (ed.), International Handbook on Teaching and Learning Economics, chapter 7, Edward Elgar Publishing.
    3. Hart Hodges & Yvonne Durham & Steve Henson, 2018. "Economic Education Production Functions for the Principles of Macroeconomics and the Principles of Microeconomics: Is There a Difference?," Journal for Economic Educators, Middle Tennessee State University, Business and Economic Research Center, vol. 18(2), pages 22-41, Fall.
    4. Marcus Giamattei & Humberto Llavador, 2017. "Teaching microeconomic principles with smartphones – lessons from classroom experiments with classEx," Working Papers 996, Barcelona School of Economics.
    5. Beth A. Freeborn & Jason P. Hulbert, 2011. "Persuasive and Informative Advertising: A Classroom Experiment," The Journal of Economic Education, Taylor & Francis Journals, vol. 42(1), pages 51-59, January.
    6. Mateu, Guillermo, 2021. "Innovative education management: an empirical study," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 15(3), pages 2-17.
    7. Subha Mani & Utteeyo Dasgupta, 2010. "Explaining Randomized Evaluation Techniques Using Classroom Games," Fordham Economics Discussion Paper Series dp2010-06, Fordham University, Department of Economics.
    8. Gerald Eisenkopf & Pascal Sulser, 2013. "A Randomized Controlled Trial of Teaching Methods: Do Classroom Experiments improve Economic Education in High Schools?," TWI Research Paper Series 80, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    9. McMahon, Michael, 2011. "Classroom Games in Economics: A Quantitative Assessment of the ‘Beer Game’," Economic Research Papers 270760, University of Warwick - Department of Economics.
    10. Dickinson, David L., 2009. "Experiment timing and preferences for fairness," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 89-95, January.
    11. Yvonne Durham & Thomas Mckinnon & Craig Schulman, 2007. "Classroom Experiments: Not Just Fun And Games," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 162-178, January.
    12. So, Tony, 2020. "Classroom experiments as a replication device," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 86(C).
    13. Ninos P. Malek & Joshua C. Hall & Collin Hodges, 2014. "A Review and Analysis of the Effectiveness of Alternative Teaching Methods on Student Learning in Economics," Working Papers 14-27, Department of Economics, West Virginia University.
    14. Martin Dufwenberg & J. Todd Swarthout, 2009. "Play to Learn? An Experiment," Experimental Economics Center Working Paper Series 2009-08, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
    15. Giamattei, Marcus & Graf Lambsdorff, Johann, 2015. "classEx: An online software for classroom experiments," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-68-15, University of Passau, Faculty of Business and Economics.
    16. Grace Finley & Charles Holt & Emily Snow, 2019. "The welfare costs of price controls and rent seeking in a class experiment," Experimental Economics, Springer;Economic Science Association, vol. 22(3), pages 753-771, September.
    17. Liu, Donald J. & Walker, J.D. & Bauer, Theresa A. & Zhao, Meng, 2007. "Facilitating Classroom Economics Experiments with an Emerging Technology: The Case of Clickers," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9873, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Jonathan Guest, 2015. "Reflections on ten years of using economics games and experiments in teaching," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1115619-111, December.
    19. Sam Allgood & William B. Walstad & John J. Siegfried, 2015. "Research on Teaching Economics to Undergraduates," Journal of Economic Literature, American Economic Association, vol. 53(2), pages 285-325, June.
    20. Hilde Patron & William J. Smith, 2016. "The Short-Term and Long-Term Trade-Offs of Sustainable Entrepreneurship," Journal for Economic Educators, Middle Tennessee State University, Business and Economic Research Center, vol. 16(1), pages 36-48, Fall.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ireced:v:36:y:2021:i:c:s1477388020300323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/international-review-of-economics-education .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.