The ABCs of RBCs is the first book to provide a basic introduction to Real Business Cycle (RBC) and New-Keynesian models. These models argue that random shocks—new inventions, droughts, and wars, in the case of pure RBC models, and monetary and fiscal policy and international investor risk aversion, in more open interpretations—can trigger booms and recessions and can account for much of observed output volatility.

George McCandless works through a sequence of these Real Business Cycle and New-Keynesian dynamic stochastic general equilibrium models in fine detail, showing how to solve them, and how to add important extensions to the basic model, such as money, price and wage rigidities, financial markets, and an open economy. The impulse response functions of each new model show how the added feature changes the dynamics.

The ABCs of RBCs is designed to teach the economic practitioner or student how to build simple RBC models. Matlab code for solving many of the models is provided, and careful readers should be able to construct, solve, and use their own models.

In the tradition of the “freshwater” economic schools of Chicago and Minnesota, McCandless enhances the methods and sophistication of current macroeconomic modeling.

The terms “capitalism” and “socialism” continue to haunt our political and economic imaginations, but we rarely consider their interconnected early history. Even the eighteenth century had its “socialists,” but unlike those of the nineteenth, they paradoxically sought to make the world safe for “capitalists.” The word “socialists” was first used in Northern Italy as a term of contempt for the political economists and legal reformers Pietro Verri and Cesare Beccaria, author of the epochal On Crimes and Punishments. Yet the views and concerns of these first socialists, developed inside a pugnacious intellectual coterie dubbed the Academy of Fisticuffs, differ dramatically from those of the socialists that followed.

Sophus Reinert turns to Milan in the late 1700s to recover the Academy’s ideas and the policies they informed. At the core of their preoccupations lay the often lethal tension among states, markets, and human welfare in an era when the three were becoming increasingly intertwined. What distinguished these thinkers was their articulation of a secular basis for social organization, rooted in commerce, and their insistence that political economy trumped theology as the underpinning for peace and prosperity within and among nations.

Reinert argues that the Italian Enlightenment, no less than the Scottish, was central to the emergence of political economy and the project of creating market societies. By reconstructing ideas in their historical contexts, he addresses motivations and contingencies at the very foundations of modernity.

Accelerating energy innovation could be an important part of an effective response to the threat of climate change. Written by a stellar group of experts in the field, this book complements existing research on the subject with an exploration of the role that public and private policy have played in enabling—and sustaining—swift innovation in a variety of industries, from agriculture and the life sciences to information technology. Chapters highlight the factors that have determined the impact of past policies, and suggest that effectively managed federal funding, strategies to increase customer demand, and the enabling of aggressive competition from new firms are important ingredients for policies that affect innovative activity.

Many people in developing countries lack access to health technologies, even basic ones. Why do these problems in access persist? What can be done to improve access to good health technologies, especially for poor people in poor countries?

This book answers those questions by developing a comprehensive analytical framework for access and examining six case studies to explain why some health technologies achieved more access than others. The technologies include praziquantel (for the treatment of schistosomiasis), hepatitis B vaccine, malaria rapid diagnostic tests, vaccine vial monitors for temperature exposure, the Norplant implant contraceptive, and female condoms.

Based on research studies commissioned by the Bill & Melinda Gates Foundation to better understand the development, adoption, and uptake of health technologies in poor countries, the book concludes with specific lessons on strategies to improve access. These lessons will be of keen interest to students of health and development, public health professionals, and health technology developers—all who seek to improve access to health technologies in poor countries.

The most intriguing question about Indonesia’s economic development during the twentieth century is why the country’s growth performance has been so erratic and displayed such a high degree of discontinuity. This is connected with the fundamental question about the nature of long-run economic development in Indonesia.

So far the economic historiography of Indonesia has been less systematic than what the available source material would permit. Indonesia is exceptionally well endowed with rich statistical sources, which carry the potential of supporting a rigorous and systematic quantitative approach to vital questions concerning the economic growth performance in the long run.

This book takes such an approach and presents new estimates for the long-run growth of the Indonesian service sector, and analyses the role of the various service sectors in economic development. Linking empirical and theoretical analysis in a creative fashion, Daan Marks provides a rich and original contribution to our understanding of the economic history of Indonesia. He shows that the service sector has played a crucial role in Indonesia’s economic development. Or in other words, to fully understand Indonesia’s economic development path sevices need to be accounted for.

A Five Books Best Economics Book of the Year
A Politico Great Weekend Read

“Absolutely compelling.”
—Diane Coyle

“The evolution of modern management is usually associated with good old-fashioned intelligence and ingenuity…But capitalism is not just about the free market; it was also built on the backs of slaves.”
—Forbes

The story of modern management generally looks to the factories of England and New England for its genesis. But after scouring through old accounting books, Caitlin Rosenthal discovered that Southern planter-capitalists practiced an early form of scientific management. They took meticulous notes, carefully recording daily profits and productivity, and subjected their slaves to experiments and incentive strategies comprised of rewards and brutal punishment. Challenging the traditional depiction of slavery as a barrier to innovation, Accounting for Slavery shows how elite planters turned their power over enslaved people into a productivity advantage. The result is a groundbreaking investigation of business practices in Southern and West Indian plantations and an essential contribution to our understanding of slavery’s relationship with capitalism.

“Slavery in the United States was a business. A morally reprehensible—and very profitable business…Rosenthal argues that slaveholders…were using advanced management and accounting techniques long before their northern counterparts. Techniques that are still used by businesses today.”
—Marketplace

“Rosenthal pored over hundreds of account books from U.S. and West Indian plantations…She found that their owners employed advanced accounting and management tools, including depreciation and standardized efficiency metrics.”
—Harvard Business Review

Drawing on a broad range of American and French archives, Derek Vaillant joins textual and aural materials with original data analytics and maps to illuminate U.S.-French broadcasting's political and cultural development. Vaillant focuses on the period from 1931 until France dismantled its state media system in 1974. His analysis examines mobile actors, circulating programs, and shifting institutions that shaped international radio's use in times of war and peace. He explores the extraordinary achievements, the miscommunications and failures, and the limits of cooperation between America and France as they shaped a new media environment. Throughout, Vaillant explains how radio's power as an instantaneous mass communications tool produced, legitimized, and circulated various notions of states, cultures, ideologies, and peoples as superior or inferior.

A first comparative history of its subject, Across the Waves provocatively examines how different strategic agendas, aesthetic aims and technical systems shaped U.S.-French broadcasting and the cultural politics linking the United States and France.

This book could be called “The Intelligent Person’s Guide to Economics.” Like Robert Heilbroner’s The Worldly Philosophers, it attempts to explain the core ideas of the great economists, beginning with Adam Smith and ending with Joseph Schumpeter. In between are chapters on Thomas Malthus, David Ricardo, Karl Marx, the marginalists, John Maynard Keynes, Friedrich Hayek, and Thorstein Veblen. The title expresses Duncan Foley’s belief that economics at its most abstract and interesting level is a speculative philosophical discourse, not a deductive or inductive science. Adam’s fallacy is the attempt to separate the economic sphere of life, in which the pursuit of self-interest is led by the invisible hand of the market to a socially beneficial outcome, from the rest of social life, in which the pursuit of self-interest is morally problematic and has to be weighed against other ends.

Smith and his successors argued that the market and the division of labor that is fostered by it result in tremendous gains in productivity, which lead to a higher standard of living. Yet the market does not address the problem of distribution—that is, how is the gain in wealth to be divided among the classes and members of society? Nor does it address such problems as the long-run well-being of the planet.

Adam’s Fallacy is beautifully written and contains interesting observations and insights on almost every page. It will engage the reader’s thoughts and feelings on the deepest level.

Advanced Econometrics is both a comprehensive text for graduate students and a reference work for econometricians. It will also be valuable to those doing statistical analysis in the other social sciences. Its main features are a thorough treatment of cross-section models, including qualitative response models, censored and truncated regression models, and Markov and duration models, as well as a rigorous presentation of large sample theory, classical least-squares and generalized least-squares theory, and nonlinear simultaneous equation models.

Although the treatment is mathematically rigorous, the author has employed the theorem-proof method with simple, intuitively accessible assumptions. This enables readers to understand the basic structure of each theorem and to generalize it for themselves depending on their needs and abilities. Many simple applications of theorems are given either in the form of examples in the text or as exercises at the end of each chapter in order to demonstrate their essential points.

The current debate over the economics of advertising has long focused on two questions. The first concerns the impact of advertising on the relative positions of large and small firms in an industry and thereby on the state of competition. The second examines the role of advertising on consumer purchasing decisions over broad consumption categories. Comanor and Wilson use the modern tools of economic theory and statistics to build and test their hypotheses, and contribute important analytical and empirical evidence on the key issues.

The authors find that consumer decisions are affected substantially by the volume of advertising. Indeed, advertising is a weightier factor than relative prices. Their conclusions surely contribute to the nervousness long felt by economists over the use of consumer preferences to evaluate the welfare implications of resource allocation.

Using archival sources, newspapers accounts, and trade publications, Stole demonstrates that the war elevated and magnified the seeming contradictions of advertising and allowed critics of these practices one final opportunity to corral and regulate the institution of advertising. Exploring how New Dealers and consumer advocates such as the Consumers Union battled the advertising industry, Advertising at War traces the debate over two basic policy questions: whether advertising should continue to be a tax-deductible business expense during the war, and whether the government should require effective standards and labeling for consumer products, which would render most advertising irrelevant. Ultimately the postwar climate of political intolerance and reverence for free enterprise quashed critical investigations into the advertising industry. While advertising could be criticized or lampooned, the institution itself became inviolable.

Inger L. Stole examines how consumer activists sought to limit corporate influence by rallying popular support to moderate and change advertising. Stole weaves the story through the extensive use of primary sources, including archival research done with consumer and trade group records, as well as trade journals and engagement with the existing literature. Her account of the struggle also demonstrates how public relations developed in order to justify laissez-faire corporate advertising in light of a growing consumer rights movement, and how the failure to rein in advertising was significant not just for civic life in the 1930s but for our era as well.

Over a forty-year career, Chicagoan Tom Burrell changed the face of advertising and revolutionized the industry’s approach to African Americans as human beings and consumers. Jason P. Chambers offers a biography of the groundbreaking creator and entrepreneur that explores Burrell’s role in building brands like McDonald’s and Coca-Cola within a deeply felt vision of folding positive images of Black people into mainstream American life. While detailing Burrell’s successes, Chambers tells a parallel story of what Burrell tried to do that sheds light on the motivations of advertising creators who viewed their work as being about more than just selling. Chambers also highlights how Burrell used his entrepreneurial gifts to build an agency that opened the door for Black artists, copywriters, directors, and other professionals to earn livings, build careers, and become leaders within the industry.

Compelling and multidimensional, Advertising Revolutionary combines archival research and interviews with Burrell and his colleagues to provide a long overdue portrait of an advertising industry legend and his times.

A Foreign Affairs Best Book of the Year

“An intellectual excursion of a kind rarely offered by modern economics.”
—Foreign Affairs

Thomas Piketty’s Capital in the Twenty-First Century is the most widely discussed work of economics in recent years. But are its analyses of inequality and economic growth on target? Where should researchers go from there in exploring the ideas Piketty pushed to the forefront of global conversation? A cast of leading economists and other social scientists—including Emmanuel Saez, Branko Milanovic, Laura Tyson, and Michael Spence—tackle these questions in dialogue with Piketty.

“A fantastic introduction to Piketty’s main argument in Capital, and to some of the main criticisms, including doubt that his key equation…showing that returns on capital grow faster than the economy—will hold true in the long run.”
—Nature

“Piketty’s work…laid bare just how ill-equipped our existing frameworks are for understanding, predicting, and changing inequality. This extraordinary collection shows that our most nimble social scientists are responding to the challenge.”
—Justin Wolfers, University of Michigan

Five years into capitalism's deepest crisis, which has led to cuts and economic pain across the world, Against Austerity addresses a puzzling aspect of the current conjuncture: why are the rich still getting away with it? Why is protest so ephemeral? Why does the left appear to be marginal to political life?

In an analysis which challenges our understanding of capitalism, class and ideology, Richard Seymour shows how ‘austerity’ is just one part of a wider elite plan to radically re-engineer society and everyday life in the interests of profit, consumerism and speculative finance.

But Against Austerity is not a gospel of despair. Seymour argues that once we turn to face the headwinds of this new reality, dispensing with reassuring dogmas, we can forge new collective resistance and alternatives to the current system. Following Brecht, Against Austerity argues that the good old things are over, it's time to confront the bad new ones.

“A mind-blowing tour de force that unwraps the myriad objects of addiction that surround us…Intelligent, incisive, and sometimes grimly entertaining.”
—Rod Phillips, author of Alcohol: A History

“A fascinating history of corporate America’s efforts to shape our habits and desires.”
—Vox

We live in an age of addiction, from compulsive gaming and shopping to binge eating and opioid abuse. Sugar can be as habit-forming as cocaine, researchers tell us, and social media apps are deliberately hooking our kids. But what can we do to resist temptations that insidiously rewire our brains? A renowned expert on addiction, David Courtwright reveals how global enterprises have both created and catered to our addictions. The Age of Addiction chronicles the triumph of what he calls “limbic capitalism,” the growing network of competitive businesses targeting the brain pathways responsible for feeling, motivation, and long-term memory.

“Compulsively readable…In crisp and playful prose and with plenty of needed humor, Courtwright has written a fascinating history of what we like and why we like it, from the first taste of beer in the ancient Middle East to opioids in West Virginia.”
—American Conservative

“A sweeping, ambitious account of the evolution of addiction…This bold, thought-provoking synthesis will appeal to fans of ‘big history’ in the tradition of Guns, Germs, and Steel.”
—Publishers Weekly

In 1900 the global average life expectancy at birth was thirty-one years. By 2000 it was sixty-six. Yet, alongside unprecedented improvements in longevity and material well-being, the twentieth century also saw the rise of fascism and communism and a second world war followed by a cold war. This book tells the story of the battles between economic systems that defined the last century and created today's world.

The nineteenth century was a period of rapid economic growth characterized by relatively open markets and more personal liberty, but it also brought great inequality within and between nations. The following century offered sharp challenges to free-wheeling capitalism from both communism and fascism, whose competing visions of planned economic development attracted millions of people buffeted by the economic storms of the 1930s. The Age of Equality describes the ways in which market-oriented economies eventually overcame the threat of these visions and provided a blueprint for reform in nonmarket economies. This was achieved not through unbridled capitalism but by combining the efficiency and growth potential of markets with government policies to promote greater equality of opportunity and outcome. Following on the heels of economic reform, rapid catch-up growth in countries such as China, India, Indonesia, Brazil, and Poland helped to reduce global inequality.

At a time when inequality is on the rise in nations as disparate as the United States and Egypt, Pomfret’s interpretation of how governments of market economies faced the challenges of the twentieth century is both instructive and cautionary.

The noted economist Yair Mundlak presents here a theory of the growth of the agricultural sector within the context of a growing economy. He explores the various aspects of the dynamics of agriculture and their relationship to the dynamics of the economy at large, offering a unique blend of theory, methodology, and empirical analysis.

The rate of agricultural growth has varied across countries and over time, even though the main innovations in agricultural technology have been made available to all countries. Consequently, the difference in performance is due to the use made of the available technology. Mundlak treats the implementation of technology as an economic decision similar to decisions about resource supply and allocation. The development of agriculture, like that of other sectors, is determined to a large degree by the economic environment, especially public policies. This framework permits the author to evaluate the effects of policies on growth by examining their effects on sectoral incentives. Mundlak shows that neutral macroeconomic policies may have a stronger effect on sectoral growth than sector-specific policies.

The book contains problem sets, and will be a reference and text for graduate-level courses.

Richard Caves analyzes the market structure, conduct, and performance of the United States domestic passenger airlines. A unique aspect of the industry is the close regulation of its daily business functioning by the Civil Aeronautics Board. Although this influence affects every managerial decision, Caves finds that the economic elements in the industry's market structure still play a vital role in determining performance and conduct. He shows that the airline industry has structural characteristics that would ensure market performance of reasonable quality with less extensive economic regulation.

His book is more than a comprehensive evaluation of the air-transport industry; it is concerned with the basic question of governmental control. Questions of regulation, already materially affecting the American economy, are often before the public. Such industry studies as this clarify the net effect on the general economic welfare of industrial controls—how they work, where they work best, and the advantages of increasing or decreasing them.

At the turn of the century, Colorado's Cripple Creek District captured the national imagination with the extraordinary wealth of its gold mines and the unquestionable strength of the militant Western Federation of Miners. 

Elizabeth Jameson tells the entertaining story of Cripple Creek, the scene in 1894 of one of radical labor's most stunning victories and, in 1903 and 1904, of one of its most crushing defeats. Jameson draws on working-class oral histories, the Victor and Cripple Creek Daily Press published by 34 of the local labor unions, and the 1900 manuscript census. She connects unions with lodges and fraternal associations, ethnic identity, families, households, and partisan politics. Through these ties, she probes the differences in age, skill, gender, marital status, and ethnicity that strained working-class unity and contributed to the fall of labor in Cripple Creek. 

Jameson's book will be required reading for western, ethnic, and working-class historians seeking an alternative interpretation of western mining struggles that emphasizes class, gender, and multiple sources of social identity.

More than we ever anticipated, alliances among firms are changing the way business is conducted, particularly in the global, high-technology sector. The reasons are clear: companies must increasingly pool their capabilities to succeed in ever more complex and rapidly changing businesses. But the consequences for managers and for the economy have so far been underestimated. In this new book, Benjamin Gomes-Casseres presents the first in-depth account of the new world of business alliances and shows how collaboration has become part of the very fabric of modern competition.

Alliances, he argues, create new units of competition that do battle with one another and with traditional single firms. The flexible capabilities of these multi-firm constellations give them advantages over single firms in certain contexts, offsetting the advantage of a single firm's unified control. When managed effectively, alliances can strengthen a firm's competitive advantage and narrow the gap between leading firms and second-tier players. This often results in intensified rivalry, and the competition within an industry is transformed. Alliances often spread swiftly through an industry as firms jockey for advantage. Yet the very spread of alliances increases their costs and poses new limits on their use. Gomes-Casseres concludes that firms need to manage their constellations to enhance collaboration within their groups, while raising what he calls "barriers to collaboration" for rivals.

These ideas are developed and illustrated through original case studies of alliances among U.S., Japanese, and European firms in electronics and computers, including Xerox, IBM, and Fujitsu as well as other small and large companies. The book should be of interest to business academics, managers, and general readers concerned with contemporary capitalism.

At the dawn of the 1990s, it seemed that Amazonia had become irrevocably trapped in a downward spiral of deforestation, environmental destruction and social conflict. Yet over the past ten years a more acute awareness has emerged at all levels, national and international, of the need to encourage more sustainable policies and practices. That is, measures that provide for the economic development needs of Amazonia's diverse population, while at the same time conserving and managing the region's natural resource base. At a major conference, organised in London in June 1998 by the Institute of Latin American Studies (Amazonia 2000: Development, Environment and Geopolitics), over twenty international scholars traced the evolution of this gradual shift in thinking. The present volume, based on that conference, examines past patterns of destructive resource extraction in Amazonia and, more importantly, critically analyses a series of newer initiatives that offer more sustainable options. These include, amongst others, new production strategies, such as agroforestry, innovative resource governance models such as inland fisheries co-management and agro-ecological zoning. The challenge at this critical juncture is how to integrate such policies and practices into mainstream development within Amazonia. Contributors: David Cleary, Rene; Dreifuss, Philip Fearnside, Jessica Groenendijk, Anthony Hall, Judith Kimerling, Tom Lovejoy, Dennis Mahar, David McGrath, Emilio Moran, Darrel Posey, Nigel Smith, and Wouter Veening.

American agriculture in the twentieth century has given the world one of its great success stories, a paradigm of productivity and plenty. Yet the story has its dark side, from the plight of the Okies in the 1930s to the farm crisis of the 1980s to today's concerns about low crop prices and the impact of biotechnology. Looking at U.S. farming over the past century, Bruce Gardner searches out explanations for both the remarkable progress and the persistent social problems that have marked the history of American agriculture.

Gardner documents both the economic difficulties that have confronted farmers and the technological and economic transformations that have lifted them from relative poverty to economic parity with the nonfarm population. He provides a detailed analysis of the causes of these trends, with emphasis on the role of government action. He reviews how commodity support programs, driven by interest-group politics, have spent hundreds of billions of dollars to little purpose. Nonetheless, Gardner concludes that by reconciling competing economic interests while fostering productivity growth and economic integration of the farm and nonfarm economies, the overall twentieth-century role of government in American agriculture is fairly viewed as a triumph of democracy.

A collection of the most advanced and authoritative agricultural-economic research in the face of increasing water scarcity.

Agriculture has been critical in the development of the American economy. Except in parts of the western United States, water access has not been a critical constraint on agricultural productivity, but with climate change, this may no longer be the case. This volume highlights new research on the interconnections between American agriculture, water resources, and climate change. It examines climatic and geologic factors that affect the agricultural sector and highlights historical and contemporary farmer responses to varying conditions and water availability. It identifies the potential effects of climate change on water supplies, access, agricultural practices, and profitability, and analyzes technological, agronomic, management, and institutional adjustments. Adaptations such as new crops, production practices, irrigation technologies, water conveyance infrastructure, fertilizer application, and increased use of groundwater can generate both social benefits and social costs, which may be internalized with various institutional innovations. Drawing on both historical and present experiences, this volume provides valuable insights into the economics of water supply in American agriculture as climate change unfolds.