It is generally easier to convince our colleagues in other fields and disciplines of the relevance of macroeconomics than of microeconomics. I think a majority of students also find it easier to relate to macro. They refer to the fact that macroeconomics is to be found on the front page of the newspaper. But that gives us an indispensable clue. Choose micro case studies from the front pages, and students are quickly persuaded of its importance. This illustrates a more general point. Economics works best with MBA students if they can very quickly see ways in which to apply economic tools to practical business questions. A good strategy is to pick examples where students have interest and/or experience. For example, most MBA students have a good knowledge of air travel and the mobile phone market, and those two alone allow us to illustrate quite a few economic phenomena.

MBA Teaching and Research
In some business schools, there is - or perhaps was - a widespread view that we can find a negative correlation between research ability and the ability to teach MBA students. This could be interpreted in at least three ways. First, maybe the MBA student does not value research. Second, maybe the personal characteristics required to be an excellent MBA teacher are different from those required to be an excellent researcher. Third, maybe the most active researchers are so preoccupied with their research that the quality of their teaching suffers as a result.

I said at the start that I think the first of these is a myth, and the aim of this section is to comment on a virtuous circle between teaching and research. However, let me first comment briefly on the second and third hypotheses.

Concerning the second hypothesis, some writers on creativity have indicated that the very best researchers are more likely to be introverted than extroverted. By contrast, the highly interactive style of MBA teaching means that the best MBA teachers cannot be reclusive. So there is perhaps some loose justification to be found for the second hypothesis.

Concerning the third hypothesis, to the extent that all are operating on a time-budget constraint, then an extra hour spent in research must mean an hour less for something else (maybe teaching preparation). In that sense, there is some sort of trade off at work here - though it does not apply exclusively to the business school.

However, my opinion is that the virtuous circle between research and teaching probably offsets these two latter effects. First, as commented already, it is a myth to say that MBA students don't care about research. This underestimates the MBA student as a customer. This is a customer who places a high value on distinction, and if research can deliver distinction then it is of value. This may come at a general reputational level. MBA students like to go to the most prestigious schools, and if research enhances that reputation then it is valuable to the student - even if it delivers no pedagogic benefits.

More important, however, I think there is a more direct effect at work here. As I have said already, MBA students like to feel they are getting something on their programme that they could not get anywhere else. In my experience, MBA students are always eager to probe the lecturer to find out how much he or she knows. MBA students appreciate it greatly when they are taught by someone who not only knows his or her field, but also is actively engaged in research, which further develops the field. MBA students are as quick to praise the lecturer for scholarship and the ability to use it in class, as they are to complain about shortcomings.