Promoting Student Collaboration in a Detracked, Heterogeneous Secondary Mathematics Classroom

Detracking and heterogeneous groupwork are two educational practices that have been shown to have promise for affording all students needed learning opportunities to develop mathematical proficiency. However, teachers face significant pedagogical challenges in organizing productive groupwork in these settings. This study offers an analysis of one teacher’s role in creating a classroom system that supported student collaboration within groups in a detracked, heterogeneous geometry classroom. The analysis focuses on four categories of the teacher’s work that created a set of affordances to support within group collaborative practices and links the teacher’s work with principles of complex systems.

Asset Pricing with Heterogeneous Agents, Incomplete Markets and Trading Constraints

The consumption capital asset pricing model is the standard economic model used to capture stock market behavior. However, empirical tests have pointed out to its inability to account quantitatively for the high average rate of return and volatility of stocks over time for plausible parameter values. Recent research has suggested that the consumption of stockholders is more strongly correlated with the performance of the stock market than the consumption of non-stockholders. We model two types of agents, non-stockholders with standard preferences and stock holders with preferences that incorporate elements of the prospect theory developed by Kahneman and Tversky (1979). In addition to consumption, stockholders consider fluctuations in their financial wealth explicitly when making decisions. Data from the Panel Study of Income Dynamics are used to calibrate the labor income processes of the two types of agents. Each agent faces idiosyncratic shocks to his labor income as well as aggregate shocks to the per-share dividend but markets are incomplete and agents cannot hedge consumption risks completely. In addition, consumers face both borrowing and short-sale constraints. Our results show that in equilibrium, agents hold different portfolios. Our model is able to generate a time-varying risk premium of about 5.5% while maintaining a low risk free rate, thus suggesting a plausible explanation for the equity premium puzzle reported by Mehra and Prescott (1985).