The US Consumer Price Index (CPI) is the most commonly used inflation indicator in the United States. In this episode, Matt & Jadrian talk with an economics educator from Kansas State University who helps his students develop a price index specifically for college students, akin to the CPI. Dan Kuester explains how this index tracks the cost of goods and services relevant to students, such as tuition, textbooks, housing, and food. The project began as a student initiative in the economics club, aiming to make economic concepts practical and relatable. It’s even been mentioned in major media outlets like CNN and USA Today.
In this episode, we discuss:
The student price index (SPI) at Kansas State University to track inflation relevant to college students.
The process and methodology used to create the SPI, including selection and weighting issues.
The national recognition and media coverage the SPI project has received, highlight its significance and impact for the students.
Dan's efforts to enhance the student experience and community within the economics department at Kansas State.
Our favorite clips from The Office that help us teach economics.
And a whole lot more!
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Some show notes:
This was the second of four recordings at Pour Taproom in Midtown Atlanta, following the Conference on Teaching and Research in Economic Education held nearby. In this episode, we were joined by Dan Kuester, the Director of Undergraduate Studies for Economics at Kansas State University. This episode also marks our second official beer sponsorship, courtesy of David Wilson, a graduate student in economics at Georgia Tech. In his honor, both Matt & Jadrian chose Ale of an Engineer by New Realm Brewing Company, while Dan opted for Put Me in Kolsch by Wild Heaven Beer, both from local craft breweries.
Dan does a lot of amazing things for his students at Kansas State, but we wanted to focus this episode on a unique project his economics club has been running for a long time (perhaps the longest continuously running): a specialized price index for college students. This project is modeled after the Consumer Price Index (CPI) and tracks the cost of goods and services specifically relevant to students. Items such as tuition, textbooks, housing, and food are carefully selected and weighted to reflect the spending patterns of college students. This student-generated index provides a practical tool for understanding inflation's impact on their daily lives.
Dan explains the methodology behind the student price index (SPI), detailing the selection process for the items included and the reasoning for their weightings. The SPI project began as an initiative within the economics club, providing an engaging, hands-on learning experience for students. By involving students directly in the creation and maintenance of the index, they gain a solid understanding of the process and have a tangible project to discuss with future employers.
The SPI project has also gained significant attention outside the university. It has been featured in major media outlets like CNN and USA Today, highlighting its relevance and the innovative approach taken by Dan’s students. This national recognition underscores the importance of making economic concepts accessible and relatable to the student population.
In addition to the SPI project, Dan also discusses some of the other things he’s been doing to foster a sense of community within the economics department at Kansas State. Whether it’s ice cream socials, poker nights, or other social events, Dan was hired to improve student engagement at the university. These are just a few of the initiatives that help build camaraderie among students and provide a well-rounded educational experience beyond the classroom.
This week’s pop culture references:
Dan also helped create The Economics of The Office website, which hosts clips from the TV show The Office to illustrate popular economics concepts. This resource provides a fun and engaging way for students to connect economic theories to real-world scenarios depicted in the show. For our pop culture contributions, we’ve all picked our favorite clip to teach economics.
Dan's favorite scene is the episode Garage Sale, which was inspired by the One Red Paperclip story. He uses it to demonstrate the gains from trade, showing how individuals can improve their well-being through voluntary exchanges.
In Moroccan Christmas, Dwight buys up all the Princess Unicorn dolls in the area, anticipating high demand during the holiday season. Jadrian uses this scene in two different parts of his principles course. The first is to teach about changes in demand based on expectations and then the second is later in the semester to demonstrate how monopolies attempt to control a scarce resource.
Matt’s favorite scene comes from the episode called Broke, where the Michael Scott Paper Company learns about the difference between fixed costs and variable costs during a discussion with an accountant about their lack of profitability. This scene is used to illustrate key economic concepts, highlighting how understanding and managing these costs is crucial for a business's financial health and sustainability.
How Should We Calculate the Inflation Rate for College Students?