Peer teaching, a process in which students perform one or more of the functions normally undertaken by a teacher, has recently received some attention as an alternative to traditional university teaching. Whilst the techniques and tenets of peer teaching are neither new nor novel, attempts to institutionalise the peer teaching process are. Usually such approaches are ensconced within the attempts of Australian universities to move towards a more responsive and accountable stance within a total quality management framework. More particularly, where subjects such as introductory economics are characterised by low levels of student satisfaction, retention rates and participation, formalised peer teaching would appear to offer discernible benefits at a comparatively low cost. The present study analyses the impact of peer teaching, notably the Peer Assisted Study Scheme (PASS) at the University of New England. Section II provides a brief review of the context, types and processes of peer teaching within higher education, and the particular characteristics of introductory economics that make it amenable to this form of instruction. Models and hypotheses for the evaluation of the program are discussed in Section III, followed by the analysis of the results in Section IV. The paper ends with some brief concluding remarks in Section V.