In the early 1960s, fewer than five percent of Japanese owned automobiles, China’s per capita income was among the lowest in Asia, and living standards in South Korea’s rural areas were on par with some of the world’s poorest countries. Today, these are three of the most powerful economies on earth. Dwight Perkins grapples with both the contemporary and historical causes and consequences of the turnaround, drawing on firsthand experience in the region to explain how Asian countries sustained such rapid economic growth in the second half of the twentieth century.

East Asian Development offers a comprehensive view of the region, from Japan and the “Asian Tigers” (Hong Kong, Singapore, Taiwan, South Korea) to Indonesia, Vietnam, Thailand, Malaysia, and China—a behemoth larger than all the other economies combined. While the overall picture of Asian growth is positive, no single economic policy has been effective regionwide. Interventionist policies that worked well in some countries failed elsewhere. Perkins analyzes income distribution, to uncover why initially egalitarian societies have ended up in very different places, with Japan, for example, maintaining a modest gap between rich and poor while China has become one of Asia’s most unequal economies.

Today, the once-dynamic Japanese and Korean economies are sluggish, and even China shows signs of losing steam. Perkins investigates whether this is a regional phenomenon or typical of all economies at this stage of development. His inquiry reminds us that the uncharted waters of China’s vast economy make predictions of its future performance speculative at best.

One of the most striking features of contemporary industrial economies is their ability to offer an ever-expanding and improving range of products. Personal computers, tiny pacemakers, digital watches, and VCRs simply did not exist, and were not even dreamt of, only a few decades ago. Such product innovations play an increasingly important role in modern economic growth, and it is therefore imperative that economists come to grips with them, just as they have done with traditional economic phenomena.

In this skillfully crafted and imaginative study, Manuel Trajtenberg develops the tools to quantify and analyze the notion of product innovation. He argues persuasively that the magnitude of an innovation should be equated with the social benefits that it generates. Drawing from the "characteristics approach" to demand theory and the econometrics of discrete choice, he presents an ingenious method to estimate the benefits from product innovations that accrue to the consumer over time. His method centers on consumer preferences for different product attributes -such as speed and size of memory in computers-and then uses those preferences to evaluate the changes in attributes.

Trajtenberg applies his approach to the study of one of the most remarkable innovations in medical technology--Computed Tomography (CT) scanners. He assembled for that purpose an impressive set of data on every aspect of the new technology, from qualities and prices, patents and research, to details on virtually every sale in the United States during the decade following the introduction of CT in 1973. This close-up view of an innovation, quite rare in economic literature, offers valuable insights on the nature of the innovative process, the interaction between innovation and diffusion, the effects of uncertainty about quality, and the implications of changing preferences.

A revealing collection from the intellectual titan whose work shaped the modern world.

As an economist and public intellectual, Gary S. Becker was a giant. The recipient of a Nobel Prize, a John Bates Clark Medal, and a Presidential Medal of Freedom, Becker is widely regarded as the greatest microeconomist in history.

After forty years at the University of Chicago, Becker left a slew of unpublished writings that used an economic approach to human behavior, analyzing such topics as preference formation, rational indoctrination, income inequality, drugs and addiction, and the economics of family.

These papers unveil the process and personality—direct, critical, curious—that made him a beloved figure in his field and beyond. The Economic Approach examines these extant works as a capstone to the Becker oeuvre—not because the works are perfect, but because they offer an illuminating, instructive glimpse into the machinations of an economist who wasn’t motivated by publications. Here, and throughout his works, an inquisitive spirit remains remarkable and forever resonant.

In the past three decades, the number of obese adults in the United States has doubled and the number of obese children almost tripled, which may lead to increased medical expenditures, productivity loss, and stress on the health care system. Economic analysis now shows that weight gain is the result of individual choices in response to economic environments and demonstrates that incentives can influence individual behaviors affecting weight. Determinants are varied and include year- and area-specific food prices, availability of food outlets and recreational facilities, health insurance, and minimum wage levels. Timely and important, Economic Aspects of Obesity provides a strong foundation for evaluating the costs and benefits of various proposals designed to control obesity rates.

Recent studies show that almost all industrial countries have experienced dramatic decreases in both fertility and mortality rates. This situation has led to aging societies with economies that suffer from both a decline in the working population and a rise in fiscal deficits linked to increased government spending. East Asia exemplifies these trends, and this volume offers an in-depth look at how long-term demographic transitions have taken shape there and how they have affected the economy in the region.

The Economic Consequences of Demographic Change in East Asia assembles a group of experts to explore such topics as comparative demographic change, population aging, the rising cost of health care, and specific policy concerns in individual countries. The volume provides an overview of economic growth in East Asia as well as more specific studies on Japan, Korea, China, and Hong Kong. Offering important insights into the causes and consequences of this transition, this book will benefit students, researchers, and policy makers focused on East Asia as well as anyone concerned with similar trends elsewhere in the world.

Long respected as a classic in Europe, this translation is welcomed as the first comprehensive survey of Swedish economic history available in this country. Herein the late Eli Filip Heckscher discusses Swedish economy from the feudalism of the Middle Ages to World War II socialism.

Complete coverage is given to such diverse yet interrelated subjects as land distribution and use, agrarian reforms, growth of cities, social structure, foreign influence and immigration, development of iron and other metals, forest industry, population growth, trade beginnings, cooperatives, and the growth of socialism.

Faithfully translated, and with a newly added conclusion by Gunnar Heckscher, the author's son, this interesting book is valuable as a study of one of Europe's most economically advanced countries. Well-illustrated with maps, charts, and graphs, it provides invaluable reference material.

It is often alleged that late Victorian businessmen in Britain displayed little of the vigor of their fathers in competition with the new industrial powers of the late nineteenth century, Germany and the United States. This allegation has been the foundation for a great many interpretations of the end of British domination over the world's economic life and of the economic difficulties that Britain has faced subsequently.

The British iron and steel industry is taken traditionally as the prime example of entrepreneurial decline. Mr. McCloskey shows, however, that businessmen in the industry performed on most counts as well as their German and American counterparts. The lack of evidence of entrepreneurial failure in the industry casts serious doubt on the importance of the entrepreneurial factor in Britain's relative decline. It suggests, indeed, that the supposed failure was a mere reflex of Britain's early attainment of economic maturity and the contemporaneous drive to maturity of Germany and the United States.

McCloskey uses relatively uncomplicated economic tools to establish these points. The central tool is the measurement of total factor productivity in the iron and steel industry in Britain and abroad. It is supplemented by analyses of supply and demand (to remove the influence of slowly growing demand at home from the record of the British industry): of the profitability of adopting the basic open hearth process of steelmaking (to show that the slowness of Britain to adopt it-which has been the keystone of the case for entrepreneurial failure-was economically rational); and of the competitiveness of the industry's markets (to validate use of these simple tools).

The book is based on a thorough study of the trade newspapers of the industry, its scientific journals, its statistical annuals, and the many reports of the British government and contemporary observers on its activities. It combines, therefore, the virtues of the "old" and the 'new" economic history. And although the book is historical, its conclusions are relevant to any study of economic growth past or present, in particular to the study of the role of entrepreneurship.

This book, a revision of Mr. McCloskey's Ph.D. dissertation, was awarded the David A. Wells Prize for l970-7l. The author is Associate Professor of Economics, The University of Chicago.

Argentina is a fascinating and baffling case to scholars of economic development. It has rich agricultural resources, a fully monetized economy, a domestic manufacturing sector that occupies a large share of the active labor force, a relatively high level of literacy, and other attributes that resemble a European nation more than a developing country. At the same time, Argentina has found it difficult to develop the institutions of a modern nation-state and to sustain a satisfactory rate of economic growth. This book is a new and vigorous attempt to explain the Argentinian paradoxes.

The authors' central hypothesis is that the conventional framework of economic analysis is ill-suited for policymaking in a pluralistic society; in such a society, successful macroeconomic policy management depends on support from viable political coalitions. In the absence of a repressive dictatorship, decision makers in Argentina, the authors maintain, have consistently attempted to adopt policy positions seemingly designed to tear society apart. Does this mean that no mediative policy alternatives exist which are more congenial to political pluralism? The authors present some answers to this important question by examining the Argentine balance of payments and stabilization policies. Their conclusions about macroeconomic policymaking are not only significant for Argentinian policymaking, but are also relevant for other semi-industrial societies.

In the 1980s, world recession, drought, civil conflict, and other forces brought major economic upheaval to the countries of Sub-Saharan Africa. Most of the early efforts by governments to stabilize their economies met with little success, but The Gambia was an exception. In 1985 the government introduced the Economic Recovery Program, one of the most sweeping reform programs attempted on the continent. The economy quickly stabilized, with the rate of inflation falling to below ten percent and the overall balance of payments in surplus for the first time since the early 1970s.

Economic Recovery in The Gambia examines The Gambia's success in depth. It analyzes a wide range of policy reforms-exchange rates, taxation, foreign debt, agriculture, state-owned enterprises, customs inspection-and in each case, the authors review problems the government faced, steps that were taken to address them, and the success and failures of the reform initiatives. These economic and institutional analyses are complemented by an examination of the politics of reform and the role that donor agencies played. The final chapter summarizes important lessons from The Gambia's experience, and provides insights for other countries in Sub-Saharan Africa.

The coal industry has undergone a basic revision since World War II—the present picture differs strikingly from the accepted one. Here for the first time the change is studied in detail. This volume defines the relation between changes in coal consumption and the great technological progress in coal mining during recent years. C. L. Christenson begins by inquiring into the uses of coal as part of the supporting base for modern industrial civilization and the relative position of United States reserves as a portion of world supplies. He next examines the specific variations of the reserves which determine the ownership structure of the bituminous coal industry in the United States as well as the 1940–60 product market shift.

Against this background the author reviews the advance of technology, particularly the striking development from 1950–60, and finally he discusses the relation between this development and miners' employment and wages. Christenson surveys the results of investigation of the records of over 3,000 mines in five states, material from the Bureau of Employment Security, and the annual reports of the United Mine Workers of America Welfare Fund from 1950–60.

Charles Kindleberger, an international economic specialist, seeks in this book to show how economic history and economic analysis can interact, giving particular attention to the question of how history can be used in a comparative setting to test economic models for generality. His history and examples span the seventeenth to the twentieth century. The important and unexpected result is to show how the applicable economic model in given instances is strongly conditioned by social, socio-psychological, and political settings in which a given stimulus elicits a particular response. As a by-product, Kindleberger throws light on the political economy of Western European states, especially in international economic dimensions, but also in technological change, scientific education, and economic growth.

In these spirited and lucid essays, Kindleberger discusses related and abiding economic questions: whether the creation of a world financial center is inevitable; what the possible bases for free trade are; how insights can be gained into present day multinational corporations; and how information networks can maximize benefits in trade, and can affect the quality of output, costs, and economies of scale.

Part of the author's interest is methodological. He believes that the comparative method—studying the same rather restricted problem in comparable economies in a fixed regional and temporal setting—yields richer insights than those available from the history of the single economy. While his own studies are limited to merchants, tariffs, free trade, capital markets, and ports, a methodological introductory chapter discusses a wider range of applications.

In a brilliant recreation of the epoch between the 1770s and the 1820s, Emma Rothschild reinterprets the ideas of the great revolutionary political economists to show us the true landscape of economic and political thought in their day, with important consequences for our own. Her work alters the readings of Adam Smith and Condorcet--and of ideas of Enlightenment--that underlie much contemporary political thought.

Economic Sentiments takes up late-eighteenth-century disputes over the political economy of an enlightened, commercial society to show us how the "political" and the "economic" were intricately related to each other and to philosophical reflection. Rothschild examines theories of economic and political sentiments, and the reflection of these theories in the politics of enlightenment. A landmark in the history of economics and of political ideas, her book shows us the origins of laissez-faire economic thought and its relation to political conservatism in an unquiet world. In doing so, it casts a new light on our own times.

The Economic Structure of International Law presents a rationalist analysis of the structure of international law. It employs social scientific techniques to develop an understanding of the role of law in international society. In doing so, it delves into the question of compliance and reveals the real-world circumstances under which states might adhere to or violate international law.

Joel P. Trachtman explores such topics as treaty-making and jurisdiction; the rise, stability, and efficiency of custom; the establishment of international organizations; and the structure and role of international legal dispute settlement. At the core of the book lies the question of the allocation of legal power to states. The Economic Structure of International Law presents policymakers and scholars with an over-arching analytical model of international law, one that demonstrates the potential of international law, but also explains how policymakers should choose among different international legal structures.

Written by a lawyer and an economist, this is the first full-length economic study of tort law--the body of law that governs liability for accidents and for intentional wrongs such as battery and defamation. Landes and Posner propose that tort law is best understood as a system for achieving an efficient allocation of resources to safety--that, on the whole, rules and doctrines of tort law encourage the optimal investment in safety by potential injurers and potential victims.

The book contains both a comprehensive description of the major doctrines of tort law and a series of formal economic models used to explore the economic properties of these doctrines. All the formal models are translated into simple commonsense terms so that the "math less" reader can follow the text without difficulty; legal jargon is also avoided, for the sake of economists and other readers not trained in the law.

Although the primary focus is on explaining existing doctrines rather than on exploring their implementation by juries, insurance adjusters, and other "real world" actors, the book has obvious pertinence to the ongoing controversies over damage awards, insurance rates and availability, and reform of tort law-in fact it is an essential prerequisite to sound reform. Among other timely topics, the authors discuss punitive damage awards in products liability cases, the evolution of products liability law, and the problem of liability for "mass disaster" torts, such as might be produced by a nuclear accident. More generally, this book is an important contribution to the "law and economics" movement, the most exciting and controversial development in modern legal education and scholarship, and will become an obligatory reference for all who are concerned with the study of tort law.

Every day, in every sector of our economy, a business shuts down while another starts up, jobs are created while others are cut, and workers are hired while others are laid off. This constant flux, or turbulence, is a defining characteristic of our free market system, yet it mostly inspires angst about unemployment, loss of earnings, and the overall competitiveness of corporations. But is this endless cycle of fluctuation really so bad for America? Might something positive be going on in the economy as a result of it?

In this penetrating work, three esteemed economists seek to answer these questions by exploring the real impact of volatility on American workers and businesses alike. According to the authors, while any number of events--shifts in consumer demand, changes in technology, mergers and acquisitions, or increased competition--can contribute to economic turbulence, our economy as a whole is, by and large, stronger for it, because these processes of creation and destruction make it more flexible and adaptable. The authors also acknowledge and document the adverse consequences of this turbulence on different groups of workers and firms and discuss the resulting policy challenges. Basing their argument on an up-close look into the dealings and practices of five key industries—financial services, retail food services, trucking, semiconductors, and software—the authors demonstrate the positive effects of turbulence on career paths, employee earnings, and firm performance.

The first substantial attempt to disentangle and make clear the complexities of this phenomenon in the United States, Economic Turbulence will be viewed as a major achievement and the centerpiece of any discussion on the subject for years to come.

The work of Overton H. Taylor is here made available within the covers of a single volume. More than twenty years of study and reflection have taken shape in the previously scattered short writings, which, chronologically presented, amount almost to intellectual autobiography.

Taylor is not simply an “economist” in the present-day meaning of the term. He is a political philosopher and a political economist—a scholar whose interests extend beyond economics into the surrounding areas of social science, philosophy, ethics, political thought, and intellectual history. Taylor’s search into the basic questions of social science has led him repeatedly—as the papers show—to new and fresh appraisals.

The writings here collected cover a wide range of subjects. Some of them are concerned with large segments of the general history of ideas in Western civilization. Other are extended, critical reviews of the books or the thoughts of contemporary thinkers such as R. H. Tawney, A. G. B. Fisher, and Joseph Schumpeter. Still others discuss modern problems of social philosophy and public policy. In all of them, the reader will find a creative and thought-provoking investigation of the foundations of the liberal conservative position.

This book provides a systematic and coherent framework for understanding the interactions between the micro and macro dimensions of economic adjustment policies; that is, it explores short-run macroeconomic management and structural adjustment policies aimed at promoting economic growth. It emphasizes the importance of structural microeconomic characteristics in the transmission of policy shocks and the response of the economy to adjustment policies. It has particular relevance to the economics of developing countries.

The book is directed to economists interested in an overview of the economics of reform; economists in international organizations, such as the UN, the IMF, and the World Bank, dealing with development; and economists in developing countries. It is also a text for advanced undergraduate students pursuing a degree in economic policy and management and students in political science and public policy.

A timely investigation of the potential economic effects, both realized and unrealized, of artificial intelligence within the United States healthcare system.

In sweeping conversations about the impact of artificial intelligence on many sectors of the economy, healthcare has received relatively little attention. Yet it seems unlikely that an industry that represents nearly one-fifth of the economy could escape the efficiency and cost-driven disruptions of AI.

The Economics of Artificial Intelligence: Health Care Challenges brings together contributions from health economists, physicians, philosophers, and scholars in law, public health, and machine learning to identify the primary barriers to entry of AI in the healthcare sector. Across original papers and in wide-ranging responses, the contributors analyze barriers of four types: incentives, management, data availability, and regulation. They also suggest that AI has the potential to improve outcomes and lower costs. Understanding both the benefits of and barriers to AI adoption is essential for designing policies that will affect the evolution of the healthcare system.

While debates over the consequences of climate change are often pessimistic, historical data from the past two centuries indicate many viable opportunities for responding to potential changes. This volume takes a close look at the ways in which economies—particularly that of the United States—have adjusted to the challenges climate change poses, including institutional features that help insulate the economy from shocks, new crop varieties, irrigation, flood control, and ways of extending cultivation to new geographic areas. These innovations indicate that people and economies have considerable capacity to acclimate, especially when private gains complement public benefits. Options for adjusting to climate change abound, and with improved communication and the emergence of new information and technologies, the potential for adaptation will be even greater in the future.

Troubles in the transportation industries show the need for revising public policies and bringing them up to date. Neither regulatory nor managerial thinking has kept pace with technological changes that destroy many of the monopoly situations that once characterized transportation markets. The authors here assemble information concerning costs, market structures, and demand conditions for the rail, highway, pipeline, water, and air transportation industries. They take into account not only the cost of actual operations but related construction, capital, maintenance, retailing, and storage costs.

The approach is analytical rather than institutional or legalistic. In the view of the authors, the regulatory system should mainly, though not solely, seek to produce conditions ordinarily produced by competition, and should be maintained only as long as it will serve this purpose. The existing regulatory structure is often continued with no regard for its usefulness is a particular situation. Regulation has also been used as a means of perpetuating certain services that are unable to pay their costs but are considered socially desirable. In many cases, discontinuing uneconomic transportation services would unquestionably work undue hardships on innocent individuals. Yet continuance of these services under private enterprise requires higher charges on other transportation services. The question therefore arises of whether the harm done by these increased charges is greater than that which would result from abandoning the uneconomic services; the authors suspect that in a very large number of cases it is.

Insisting that transportation carriers continue to provide socially needed but uneconomic services imposes a standard that clearly conflicts with the cost minimization and efficiency criteria that are generally accepted as the proper managerial goals in a free enterprise economy. Even worse, regulation aimed at maintaining a given service often prevents the introduction of cheaper and better ways of performing certain transportation functions. The result is a net loss to both consumer and producer. The authors comment on the Motor Carrier Act of 1936, the Transportation Act of 1940 and the Weeks' Committee Report, and on the roles of the ICC and the CAB.

Creative work has been celebrated as the highest form of achievement since at least Aristotle. But our understanding of the dynamics and market for creative work--artistic work in particular--often relies on unexamined clichés about individual genius, industrial engineering of talent, and the fickleness of fashion. Pierre-Michel Menger approaches the subject with new rigor, drawing on sociology, economics, and philosophy to build on the central insight that, unlike the work most of us do most of the time, creative work is governed by uncertainty. Without uncertainty, neither self-realization nor creative innovation is possible. And without techniques for managing uncertainty, neither careers nor profitable ventures would surface.

In the absence of clear paths to success, an oversupply of artists and artworks generates boundless differentiation and competition. How can artists, customers, entrepreneurs, and critics judge merit? Menger disputes the notion that artistic success depends solely on good connections or influential managers and patrons. Talent matters. But the disparity between superstardom and obscurity may hinge initially on minor gaps in intrinsic ability. The benefits of early promise in competition and the tendency of elite professionals to team up with one another amplify and disproportionately reward even small differences.

Menger applies his temporal and causal analysis of behavior under uncertainty to the careers and oeuvres of Beethoven and Rodin. The result is a thought-provoking book that brings clarity to our understanding of a world widely seen as either irrational or so free of standards that only power and manipulation count.

Thomas Piketty—whose Capital in the Twenty-First Century pushed inequality to the forefront of public debate—wrote The Economics of Inequality as an introduction to the conceptual and factual background necessary for interpreting changes in economic inequality over time. This concise text has established itself as an indispensable guide for students and general readers in France, where it has been regularly updated and revised. Translated by Arthur Goldhammer, The Economics of Inequality now appears in English for the first time.

Piketty begins by explaining how inequality evolves and how economists measure it. In subsequent chapters, he explores variances in income and ownership of capital and the variety of policies used to reduce these gaps. Along the way, with characteristic clarity and precision, he introduces key ideas about the relationship between labor and capital, the effects of different systems of taxation, the distinction between “historical” and “political” time, the impact of education and technological change, the nature of capital markets, the role of unions, and apparent tensions between the pursuit of efficiency and the pursuit of fairness.

Succinct, accessible, and authoritative, this is the ideal place to start for those who want to understand the fundamental issues at the heart of one of the most pressing concerns in contemporary economics and politics.

Richard A. Posner is probably the leading scholar in the rapidly growing field of the economics of law; he is also an extremely lucid writer. In this book, he applies economic theory to four areas of interest to students of social and legal institutions: the theory of justice, primitive and ancient social and legal institutions, the law and economics of privacy and reputation, and the law and economics of racial discrimination.

The book is designed to display the power of economics to organize and illuminate diverse fields in the study of nonmarket behavior and institutions. A central theme is the importance of uncertainty to an understanding of social and legal institutions. Another major theme is that the logic of the law, in many ways but not all, appears to be an economic one: that judges, for example, in interpreting the common law, act as if they were trying to maximize economic welfare.

Part I examines the deficiencies of utilitarianism as both a positive and a normative basis of understanding law, ethics, and social institutions, and suggests in its place the economist’s concept of “wealth maximization.”

Part II, an examination of the social and legal institutions of archaic societies, notably that of ancient Greece and primitive societies, argues that economic analysis holds the key to understanding such diverse features of these societies as reciprocal gift-giving, blood guilt, marriage customs, liability rules, and the prestige accorded to generosity. Many topics relevant to modern social and philosophical debate, including the origin of the state and the retributive theory of punishment, are addressed.

Parts III and IV deal with more contemporary social and jurisprudential questions. Part III is an economic analysis of privacy and the statutory and common law rules that protect privacy and related interests—rules that include the tort law of privacy, assault and battery, and defamation. Finally, Part IV examines, again from an economic standpoint, the controversial areas of racial and sexual discrimination, with special reference to affirmative action. Both Part III and Part IV develop as a sub-theme the issue of proper standards of constitutional adjudication by the Supreme Court.

Globalisation has created an interconnected world, but has not diminished violence, militarism and inequality. The Economics of Killing describes how the power of global elites, entrenched under globalisation, has created a deadly cycle of violence.

In this groundbreaking work, Vijay Mehta shows how attempts at peaceful national development are routinely blocked by Western powers. He locates the 2008 financial crisis in US attempts to block China's model of development. He shows how Europe and the US conspire with regional dictators to prevent countries from developing advanced industries, and how this system has fed terrorism.

Mehta argues that a different world is possible, based on policies of disarmament, demilitarisation and sustainable development. This original and thought-provoking book will be of great interest to anyone concerned about the consequences of endless war fuelled by the West.

Why should manufacturing firms in many national industries maintain multiple small scale plants when they might produce the same output at a lower unit cost in a single large establishment? What specific benefits are attained through the operation of multiple plants? To address these questions, the authors conducted 125 in-depth interviews with businessmen actively involved in plant size and multi-plant operating decisions. They investigated the experience of twelve industries in six countries (West Germany, France, the United Kingdom, Sweden, Canada, and the United States).

The authors develop an economic theory of plant size and multi-plant decisions and apply it to analyze the statistical and qualitative evidence on factors affecting plant size choices. They then examine the extent of multi-plant operation, its statistical correlate, and the economy actually or potentially realizable from various modes of multi-plant operation. Implications are drawn from antitrust and foreign trade policy, the evolution of scientific business management, and the development of industrial organization knowledge.

A foundational new collection examining the mechanics of privacy in the digital age.

The falling costs of collecting, storing, and processing data have allowed firms and governments to improve their products and services, but have also created databases with detailed individual-level data that raise privacy concerns. This volume summarizes the research on the economics of privacy and identifies open questions on the value of privacy, the roles of property rights and markets for privacy and data, the relationship between privacy and inequality, and the political economy of privacy regulation.

Several themes emerge across the chapters. One is that it may not be possible to solve privacy concerns by creating a market for the right to privacy, even if property rights are well-defined and transaction costs are low. Another is that it is difficult to measure and value the benefits of privacy, particularly when individuals have an intrinsic preference for privacy. Most previous attempts at valuation have focused only on quantifiable economic outcomes, such as innovation. Finally, defining privacy through an economic lens is challenging. The broader academic and legal literature includes many distinct definitions of privacy, and different definitions may be appropriate in different contexts. The chapters explore a variety of frameworks for examining these questions and provide a range of new perspectives on the role of economics research in understanding the benefits and costs of privacy and of data flows. As the digital economy continues to expand the scope of economic theory and research, The Economics of Privacy provides the most comprehensive survey to date of this field and its next steps.

Brendan O’Flaherty brings the tools of economic analysis—incentives, equilibrium, optimization, and more—to bear on contentious issues of race in the United States. In areas ranging from quality of health care and education, to employment opportunities and housing, to levels of wealth and crime, he shows how racial differences among blacks, whites, Hispanics, and Asian Americans remain a powerful determinant in the lives of twenty-first-century Americans. More capacious than standard texts, The Economics of Race in the United States discusses important aspects of history and culture and explores race as a social and biological construct to make a compelling argument for why race must play a major role in economic and public policy. People are not color-blind, and so policies cannot be color-blind either.

Because his book addresses many topics, not just a single area such as labor or housing, surprising threads of connection emerge in the course of O’Flaherty’s analysis. For example, eliminating discrimination in the workplace will not equalize earnings as long as educational achievement varies by race—and educational achievement will vary by race as long as housing and marriage markets vary by race. No single engine of racial equality in one area of social and economic life is strong enough to pull the entire train by itself. Progress in one place is often constrained by diminishing marginal returns in another. Good policies can make a difference, and only careful analysis can figure out which policies those are.

Religion has not been a popular target for economic analysis. Yet the tools of economics can offer deep insights into how religious groups compete, deliver social services, and reach out to potential converts—how, in daily life, religions nurture and deploy market power. Sriya Iyer puts these tools to use in an expansive, creative study of India, one of the most religiously diverse countries in the world.

Iyer explores how growth, inequality, education, technology, and social trends both affect and are affected by religious groups. Her exceptionally rich data—drawn from ten years of research, including a survey of almost 600 religious organizations in seven states—reveal the many ways religions interact with social welfare and political conflict. After India’s economy was liberalized in 1991, she shows, religious organizations substantially increased their provision of services, compensating for the retreat of the state. Iyer’s data also indicate that religious violence is more common where economic growth is higher, apparently because growth increases inequality, which sectarian politicians might exploit to encourage hostility toward other religions. As inequality leads to social polarization, religious doctrines become more extreme. But there are hopeful patterns in Iyer’s data, too. Religious organizations, on balance, play a positive role in India’s socioeconomic development, and women’s participation in religious life is on the rise.

The Economics of Religion in India has much to teach us about India and other pluralistic societies the world over, and about the power of economics to illuminate some of societies’ deepest beliefs and dynamics.

This book sets forth both a theory and a comparative empirical analysis of stagflation, that peculiar combination of high unemployment, slow growth, and spurts of high inflation bedeviling the advanced industrial nations during the past fifteen years.

The authors first construct a small macroeconomic model that takes full account of aggregate demand and supply forces in the determination of output, employment, and the price level, in both a single-economy and a multi-economy setting. They then apply the model to provide an understanding of comparative performance of industrial countries in the areas of unemployment, inflation, productivity, and investment growth. They argue convincingly that the decay of the major economies during this period resulted from the supply shocks of the 1970s, such as the two major OPEC oil-price increases, and from the consequent policy-induced decrease in demand in response to inflationary pressures. Their analysis differs markedly from similar studies in that it takes specific account of institutional differences in the labor markets of the various economies. This helps to explain in particular the divergent adjustment profiles of the United States and Europe.

Michael Bruno and Jeffrey D. Sachs make several key recommendations for the mix of demand management and incomes policies necessary to combat stagflation in individual countries as well as for the coordination of macroeconomic policies among the major industrial nations.