Evaluating the effect of online principles courses on long-term outcomes

This paper analyzes the long-term effects of the format by which students take microeconomic principles. We analyze whether an online format affects student performance in subsequent economics courses, willingness to take more economics courses, and the likelihood of majoring in economics. Our findings show that students taking microeconomic principles online performed worse on average in a subsequent macroeconomic principles course, but had no impact on the number of subsequent economics courses taken nor on the likelihood of majoring in economics. These results provide guidance to institutions considering expanding online course offerings by analyzing potential benefits and costs over time.