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This study investigates whether online homework improves learning in principles of microeconomics. It contributes to the related literature in two dimensions. First, it tests whether there is a positive association between students' performances on homework and exams. Importantly, it measures learning through exams that were given shortly after students completed the relevant homework, thereby avoiding a potential "decaying effect." Second, it tests whether the impact of homework varies by learning mode--face-to-face versus online. Results show that online homework improves learning. However, there is no significant difference in the impact of homework between the two learning modes.

The author analyzes differences in student performance in an economics course offered face to face (F2F) and online over a period of four semesters at a comprehensive public university. Apart from mode of delivery, the characteristics of the course stayed nearly identical throughout. Exam and homework assignment scores are used as measures of performance. Although mean comparisons and basic regressions indicate that online students outperform F2F students on exams, once self-selection is addressed, online students no more outperform F2F students. Furthermore, according to assessments that gauge higher levels of learning, there is evidence that online students underperform compared with F2F students.

The author uses data from two Principles of Microeconomics courses to examine differences in characteristics and performance of online versus face-to-face students. The analysis indicates that even in a traditional institution, the two delivery modes may be serving students with distinctly different backgrounds and characteristics. In terms of performance, students in the online section on average scored higher on assessments given at different points in the semester. The differential remains when accounting for potential selection bias arising from course choice and when using alternate models and measures of performance.