A Panel Data Study of Student Knowledge Growth: Application of an Economic Empirical Growth Model

This paper explores factors that contribute to growth in undergraduate knowledge of economics. An endogenous growth empirical model was applied to estimate students’ knowledge growth. Sources of knowledge growth were extracted to identify each factor’s contribution. Analysis indicated that in-classroom factors (instructional skill and attendance) accounted for over 50% of knowledge growth. A complementarity test showed that inand outof-classroom efforts were not crowding out each other; moreover, instructional skill/progress and in-classroom efforts were complementary—the more frequently the student attended class, the greater the effect of the instructor’s instructional skills on student progress. Findings implied the importance of traditional classroom learning. In addition to offering online classes to raise enrollments and revenues, school authorities should be aware of the contribution and importance of traditional face-to-face classes and continue to improve the quality of traditional classroom learning. (A20; A22; I20; I21; C30)