Book Description

In studying General Equilibrium Theory the student must master first the theory and then apply it to solve problems. At the graduate level there is no book devoted exclusively to teaching problem solving. This book teaches for the first time the basic methods of proof and problem solving in General Equilibrium Theory. The problems cover the entire spectrum of difficulty; some are routine, some require a good grasp of the material involved, and some are exceptionally challenging. The book presents complete solutions to two hundred problems. In searching for the basic required techniques, the student will find a wealth of new material incorporated into the solutions. The student is challenged to produce solutions which are different from the ones presented in the book. ... Read more

Book Description

The award-winning Black Wealth/White Wealth offers a powerful portrait of racial inequality based on an analysis of private wealth. Melvin Oliver and Thomas Shapiro analyze wealth--total assets and debts rather than income alone--to uncover deep and persistent racial inequality in America, and they show how public policies fail to redress the problem. Compelling and informative, Black Wealth/White Wealth is pioneering research. It is a powerful counterpoint to arguments against affirmative action and a direct challenge to our present social welfare policies. ... Read more

Reviews (1)

A Sound Attack on the Middle-Class Myth
The arguement that the past thirty years have resulted in a closing of the gap between whites and blacks seems untenable after reading this book. Using wealth instead of income as a measure of success and progress, Oliver and Shapiro argue that glaring inequalities still exist and may actually be growing. Moreover, since creating wealth is far more difficult when one has none to begin, the authors argue that such inequalities are sure to continue unless significant changes are made to the social safety net. These premises certainly call into question the notion of a vibrant black middle class.

Overall, I found the book to be scholarly, yet accessible to those who don't hold a Ph.D. in research methodology. The information was nicely balanced; the interviews complemented the extensive survey data and everything was clearly presented. My only complaint is that the statistical information was not presented in the appendix with the tables. This would have been useful and meaningful to academics reading the book. That being said, the thesis is a profound one, and for all those with an interest in social equity and social policy this is a must-read. ... Read more

Book Description

Book Description

The economic importance of innovation brings with it an active debate on the impact public policy has on the innovation process. This annual series, sponsored by the National Bureau of Economic Research, brings the work of leading academic researchers to the broader policy community. This volume considers such topics as the implications of software outsourcing for American technology leadership; the complementary roles of large corporations and entrepreneurs in developing innovative technology; city-level policy and planning that establishes a "jurisdictional advantage" in the value of local resources; the effect of taxes on entrepreneurship; and how to incorporate innovation into the analysis of business mergers. These papers highlight the role economic theory and empirical analysis can play in evaluating policies and programs regarding research, innovation, and the commercialization of new technologies. ... Read more

Book Description

This collection of essays, coauthored with other distinguished economists, offers new perspectives on saving, intergenerational economic ties, retirement planning, and the distribution of wealth. The book links life-cycle microeconomic behavior to important macroeconomic outcomes, including the roughly 50 percent postwar decline in America's rate of saving and its increasing wealth inequality. The book traces these outcomes to the government's five-decade-long policy of transferring, in the form of annuities, ever larger sums from young savers to old spenders. The book presents new theoretical and empirical analyses of altruism that rule out the possibility that private intergenerational transfers have offset those by the government.

While rational life-cycle behavior can explain broad economic outcomes, the book also shows that a significant minority of households fail to make coherent life-cycle saving and insurance decisions. These mistakes are compounded by reliance on conventional financial planning tools, which the book compares with Economic Security Planner (ESPlanner), a new life-cycle financial planning software program. The application of ESPlanner to U.S. data indicates that most Americans approaching retirement age are saving at much lower rates than they should be, given potential major cuts in Social Security benefits. ... Read more

Book Description

A deep question in economics is why wages and salaries don't fall during recessions. This is not true of other prices, which adjust relatively quickly to reflect changes in demand and supply. Although economists have posited many theories to account for wage rigidity, none is satisfactory. Eschewing "top-down" theorizing, Truman Bewley explored the puzzle by interviewing-during the recession of the early 1990s-over three hundred business executives and labor leaders as well as professional recruiters and advisors to the unemployed. By taking this approach, gaining the confidence of his interlocutors and asking them detailed questions in a nonstructured way, he was able to uncover empirically the circumstances that give rise to wage rigidity. He found that the executives were averse to cutting wages of either current employees or new hires, even during the economic downturn when demand for their products fell sharply. They believed that cutting wages would hurt morale, which they felt was critical in gaining the cooperation of their employees and in convincing them to internalize the managers' objectives for the company. Bewley's findings contradict most theories of wage rigidity and provide fascinating insights into the problems businesses face that prevent labor markets from clearing. ... Read more

Reviews (7)

A Example of Academics Overshadowing Message
I was excited to find this book based on the tittle and book description, mainly because I felt I was going to get a book of facts to bolster my already formed opinions. Well the book did provide facts, lots of facts sometimes not in the best order, but facts none the less. What the author and publisher failed to realize is that in the method the book was written the average reader would find it almost impossible to plod through the text. I had a college statistics professor that was Asian with a very strong accent, and the ability to stand at the front of the room and drone on and on without every moving his body or using the black board (an interesting feat in a math class) that was more lively then this book. I am assuming that even economics professors aged 65 and over would think this book to be dry and dull.

The net effect of the bone dry text and the overwhelming amount of facts, charts and lists of numbers is that a book I was excited to read turned out to be a downright pain to get through. It turned into a labor of love or some sick need to finish the book that finally got me through to the end. I feel like I deserved some medal for completing this thing. Overall the facts are interesting (in small doses) but the written was one that would bore the dead.

The conservatives exposed
The myths (or many of them)of the right are given full exposure in this fine book. Well researched and well written, it is a good primer on the delusions of the privledged class (just read some of the other reviews on this page).
Over all a significant contribution to the new analysis of conservative revisionism.

nothing new here
Exploiting class envy is as old as civilization itself,and this book is another exercise in just that.I don't question the validity of Mr. Phillips arguments or stasistics.Sure the wealthier get wealthier or at least maintain their wealth from generation to generation(barring catastrophe)but that is because when you are talking in terms of millions of dollars money automatically makes itself grow.Someone worth $5,000,000 this year will with safe,predictable,long-term investments see an increase in their wealth till the day they die.Poor to middle class people on the other hand won't see a great buildup of wealth simply due to the fact that they don't have enough wealth to exponentially grow year after year.Even an idiot can stick $5,000,000 in the bank,leave it alone,and in five or six years have $6,000,000.Of course if you only have $20,000 in the bank it won't ever be much more than $20,000.All societies have an unequal concentration of wealth and always will.Most so-called economic booms do benefit mainly the upper classes while recessions hit the poorest the hardest.Phillips does a thorough job of exposing the boom of the 80's for the myth that it was, but all in all he has written nothing we didn't already know.

Flawed Keynesian Logic Utilized to Indict 'Reaganomics'
This book is down right distortive of economic history and the 1980's... Overall, the poor did not get poorer in the 1980's, but quite the opposite. This book is essentially more tired and disproven Keynesian-Socialist views on economics, for people who want to go back to the policies of the 1970's-the era of double-digit inflation and 21% interest rates.

If you want to narrow any imbalance of wealth- do away with the Federal Reserve system, which robs the poor and middle class of their purchasing power through the hidden tax of inflation. The rich are largely able to avoid the inflation crush, because they typically have the bulk of their assets in more 'inflation-proof' liquid assets like stocks, bonds, mutual funds and real estate. If you're not a bleeding heart, get something else like 'A Nation of Millionaires.'

Indispensible guide to the 1980's and beyond
Phillips has documented in some detail the massive income shift of the Reagan years. In almost all categories the upper 10% of American families soared, while the remaining 90% either stagnated, or at the lower end, actually declined. The author's exhaustive charts demonstrate statistically what popular opinion could only entertain: the rich got richer and the poor got poorer. An interesting question to pose is why a Republican strategist like Phillips would document this adverse result in such unsparing fashion. Perhaps like some far-seeing conservatives he views a growing income gap as destabilizing to the country, and hopes to bring forth moderating influences.

In any event, the book stands as an excellent reference for understanding the impact of those years. That Phillips does not delve beyond surface movements for deeper explanation is not an objection to the work as a whole. For what he succeeds in doing with considerable authority and as "one of their own", is to revive class bias as the focal point of American politics. Being a conservative, he is not about the business of endorsing class-struggle as a premise of human history or American politics. Nevertheless, his linking of the Reagan era to previous eras of capitalist overreach helps to revive the long submerged story of class-struggle in America. This is an indispensible book for understanding the 1980's and years beyond. ... Read more

Book Description

This book discusses the changing role of government finance in the twentieth century. It documents the enormous increase in government spending throughout the 1900s across all industrialized countries. However, the authors find that the growth of the welfare state over the past thirty-five years has not brought about much additional social and economic welfare. This suggests that public spending in industrialized countries could be much smaller than today without sacrificing important policy objectives. For this to happen, governments need to refocus their role on setting the rules of the game, and the study provides a blueprint of institutional and expenditure policy reform. ... Read more

Reviews (1)

A "Must Read" for Anyone Interested in Fiscal Policy
For the first time in four decades comes a fiscal history aimed at the masses. "Vito Tanzi and Ludger Schuknecht have directed their analysis and their provocative hypotheses to a general audience, all the while detailing interesting numbers for the most part by comparing the average percentage of gross domestic product (GDP) attributed to government of seventeen wealthy countries -- the United States, the United Kingdom, Germany, Switzerland, and so forth -- from the 1870s until today. Their finding that government's share in GDP has quadrupled in that time immediately catches the reader's attention, and they delve sufficiently deep into data of key subperiods to draw some interesting and unusual references. Unlike previous analysts, Tanzi and Schuknecht place a great deal of weight on ideological factors in conditioning public choice, but they are wholly aware of the more garden-variety factors such as "Baumol's cost disease" and Wagner's law."

"Probably the most intersting point made in the book is that although government's growth relative to the economy as a whole has been dramatic since the late Victorian era, the fraction of GDP absorbed by government has almost stopped growing since 1980 both in the United States and in other wealthy OECD countries."

Tanzi and Schuknecht "seem to be familiar with the entire range of the analytic literature, though none of the "techy" modelings underlying this literature are revealed in any detail. This sort of exposition is probably wise because such inclusions would cause the nontechnical reader's eyes to glaze over and are unnecessary for those already anointed. Tanzi and Schuknecht do develop the theoretical notions intuitively, however, which is more important, and their bibliography will be particularly helpful for the neophyte scholar. Their index is quite comprehensive, and both lay and professional readers might start their study there after a quick reading of the initial and final chapters."

Tanzi and Shuknecht wonderful explication of fiscal policy should make "Public Spending in the 20th Century" a "must read" book for anyone interested in the growth of government. "The wealth of descriptive data and the authors' fresh and lively style make this book very readable...A copy of Tanzi and Schuknecht's work should be on the desk of all policymakers who believe...that the institutions of fiscal choice really matter." ... Read more

Book Description

edited and with an introduction by Benjamin M. Friedman


The connection between price inflation and real economic activity has been a focus of macroeconomic research--and debate--for much of the past century. Although this connection is crucial to our understanding of what monetary policy can and cannot accomplish, opinions about its basic properties have swung widely over the years.

Today, virtually everyone studying monetary policy acknowledges that, contrary to what many modern macroeconomic models suggest, central bank actions often affect both inflation and measures of real economic activity, such as output, unemployment, and incomes. But the nature and magnitude of these effects are not yet understood.

In this volume, Robert M. Solow and John B. Taylor present their views on the dilemmas facing U.S. monetary policymakers. The discussants are Benjamin M. Friedman, James K. Galbraith, N. Gregory Mankiw, and William Poole. The aim of this lively exchange of views is to make both an intellectual contribution to macroeconmics and a practical contribution to the solution of a public policy question of central importance. ... Read more

Reviews (1)

fruitful and timely discussion
"Inflation, Unemployment, and Monetary Policy" is one of the most serious problem in the developed countries, especially my country Japan, which is suffering a severe unemployment problem for a longrecession. Because of the continuous Government's spending policy. Japanesefiscal situation is deteriorated, so japanese economy's last hope is amonetary poicy.At that time, reading this exciting book and studyingexcellent opinions of 6 notable economists are truly fruitful. In thisbook, 6 economists make a poweful and exciting discussion...of course,there is no perfect solution...But, I believe that I can make a firm basisfor thinking this severe problem. ... Read more

Book Description

Over the next 50 years the work force in most developed countries will decline while the proportion of elderly will nearly double. The change is expected to lead to sluggish growth rates and to put a brake on rising living standards. This book reviews and analyzes the impact of this and examines as well the potential for gains in productivity and technological innovations to counter the effect of global aging. ... Read more

Book Description

Few would take exception to the proposition that an improvement in the material well-being of the poor would enhance not only their living standards but their health as well. A number of influential recent studies, however, purport to show that inequality in income--not poverty per se--is bad for people's health. This "inequality hypothesis" is meant to apply to everyone, regardless of wealth or social standing, and predicts that the risk of illness depends upon whether one lives in a society that is stratified or egalitarian. Thus, according to this hypothesis, while the poor may suffer the most from inequality, the better off and even the rich suffer as well.

The enthusiasm many researchers and observers feel for this theory goes well beyond what might be justified by the evidence. The inequality hypothesis too often relies upon limited or unrepresentative data, hazily expounded causality, elementary econometric fallacies, and results that cannot be replicated.

A very persuasive (although less publicly heralded) body of scholarship that challenges the inequality hypothesis is currently emerging. For example, by controlling for relevant variables--such as household income, maternal characteristics, education, and race--the relationship between income inequality and the health of infants and adults diminishes or disappears completely. This strongly suggests that income distribution is far less powerful a determinant of population health than the inequality hypothesis holds. ... Read more

Reviews (2)

determinism, anyone?
In "Culture & Consumption", McCracken takes the view that we are all beholden to our culture and that it is nearly impossible to break out of it. Unlike the reviewer who gave this volume 5 stars, I feel as though it is overly determinstic in its' approach. There is almost no room for any type of individual behavior, as this does not really exist for McCracken. The book is also heavy on a kind of behavioral pop psych dogma and he does not take any other modern consumption ideas into account. In the end, check this book out from the library if you really want to read it, otherwise you're just throwing your money away on overused dogmatic tripe.

You Bought the Rolex But Forgot the BMW?
"Man is a rebel against nature. He is prone to accept few things as they come. In all matters it is his irrepressible belief that by his tinkering he can improve upon them. His instrument is culture." Mary Ellen Roach, Dress, Adornment, and The Social Order

Recall the last time you presented a gift to someone. Was it really a gift for them, or did you only give the gift so that the recipient would assume the symbolic properties of the item, and therefore become more like the person you would like them to be? How about your last major purchase-was it a replacement for something that no longer fits your standards, now that your standards no longer fit your past purchases? An individual would be hard pressed to come up with, let alone answer questions like these without serious thought and reflection, yet these and many others come to mind while reading "Culture and Consumption" by Grant McCracken.

Mr. McCracken beckons us to question ourselves, our motives, and the whole rationale behind what we are doing when we make a purchase in the marketplace, whether it is for ourselves or someone else. While popular opinion and social scientific study purport that materialism is one of the things that is most wrong with our society, the author shows that the goods that are so often identified as the unhappy, destructive preoccupation of a materialistic society are in fact one of the chief instruments of its survival-one of the ways in which its order is created and maintained.

While Mary Ellen Roach and others like her declared that yes, man likes to control things, Mr. McCracken goes many steps forward. He disregards and even insults former theorists on consumption in an attempt to reverse the gears of thinking on modern consumption practices. Accordingly, clothing is not language. In fact, clothing is "quite unlike language and best communicates cultural meaning when it departs from the syntagmatic principle on which language operates." Also, the popular trickle down theory of diffusion is actually "an upward "chase and flight" pattern created by a subordinate group that "hunts" upper class status makers and a superordinate social group that moves on in a hasty flight to new ones." Quite modestly, the author admits that his work "begins the rapprochement. It does not pretend to accomplish it."

Mr. McCracken demonstrates that all the other theories about consumption are wrong or at least flawed. He questions them, and then points the way to a new understanding of how and why we are consumers. By his decree, our culture follows very distinct consumption patterns. With his review of the history of consumption to the present day, the author shows a consistent and lineal progression to the mass misunderstanding of today's marketplace. According to him, culture and consumption are inextricably intertwined, and he has attempted to unweave the elements of this intimate rapport for our perusal.

He casts doubt upon our forefathers with startling clarity. What is reality to us-something we sometimes feel developed in complicated, pretentious ways-is in fact only the direct result of our revolutionary, rebellious founding. Mr. McCracken demands that we reevaluate and reconstruct the history of Western Civilization. All that we were, all that we are, and all that we strive to be is dictated to us by our consumption patterns. While one would hope for free will and liberty under democracy, in reality we are slaves to consumption.

While our consumption once freed us from our past, it now entraps us and dictates our futures. What the author terms the Diderot effect sums this up nicely. Basically it states that when one takes the cultural meaning of a new good as the carrier of privileged meaning, they are forced to make all the rest of their possessions consistent with it. To fail in this capacity would make our semblance inaccurate and inconsistent. With that Rolex you had better buy a BMW. To house that BMW you had better buy a condo on the beach. To fill that condo you had better buy Ethan Allen furniture. To sit on that furniture you had better get a Shar-Pei. To pet that Shar-Pei you had better get a gorgeous and wealthy spouse. When you're through with these "common" luxuries, you better collect Rembrandts, Van Goghs, and Picassos until your lust for the obscure is satiated. By that time you'll be dead and you can leave your compulsive obsessions to your children so that they can continue the warped tradition of bridging their ways to the ever elusive displaced meaning-that gap between the real and ideal in social life-like moths to a flame.

These points deserve to be more than noted. Throughout history, anthropologists have chosen to study the supply side of the Industrial Revolution. Mr. McCracken offers a most refreshing viewpoint of the demand side of the equation. With unique insight, Mr. McCracken uses clothing as a prototypical item of contemporary culture and shows us how it has shaped and dominated our lives. Throughout this collection of essays, he tears down the old order of consumption theory and constructs a new one-one that has never seen the light of day.

For anyone ready to face the marketplace through marketing or advertising, and begin the long overdue look at how and why we consume, there could not be a more congenial conversationalist than Mr. McCracken. ... Read more

Book Description

Macroeconometric models, in many ways the flagships of the economist's profession in the 1960s, came under increasing attack from both theoretical economist and practitioners in the late 1970s. Critics referred to their lack of microeconomic theoretical foundations, ad hoc models of expectations, lack of identification, neglect of dynamics and non-stationarity, and poor forecasting properties. By the start of the 1990s, the status of macroeconometric models had declined markedly, and had fallen completely out of and with academic economics. Nevertheless, unlike the dinosaurs to which they often have been likened, macroeconometric models have never completely disappeared from the scene. This book describes how and why the discipline of macroeconometric modelling continues to play a role for economic policymaking by adapting to changing demands, in response, for instance, to new policy regimes like inflation targeting. Model builders have adopted new insights from economic theory and taken advantage of the methodological and conceptual advances within time series econometrics over the last twenty years. The modelling of wages and prices takes a central part in the book as the authors interpret and evaluate the last forty years of international research experience in the light of the Norwegian 'main course' model of inflation in a small open economy. The preferred model is a dynamic model of incomplete competition, which is evaluated against alternatives as diverse as the Phillips curve, Nickell-Layard wage curves, the New Keynesian Phillips curve, and monetary inflation models on data from the Euro area, the UK, and Norway. The wage price core model is built into a small econometric model for Norway to analyse the transmission mechanism and to evaluate monetary policy rules. The final chapter explores the main sources of forecast failure likely to occur in a practical modelling situation, using the large-scale nodel RIMINI and the inflation models of earlier chapters as case studies. ... Read more

Book Description

In a famous intersection of fashion and literature, the popularity of Johann Wolfgang von Goethe'sThe Sorrows of Young Werther provoked hundreds -- perhaps thousands -- of young Germans to purchase and wear the blue and yellow suit of the novel's protagonist. Their actions not only showed their affinity with Werther and with other wearers of the blue and yellow, but also elevated cultural identification over more traditional elements of social standing, such as employment, education, region, or family. Even aristocratic Prussians forsook their riding garb for Werther's rustic suit.

InThe Tyranny of Elegance, Daniel Purdy examines the coming of bourgeois fashion ( Mode) and luxury consumerism ( Luxus) to eighteenth-century Germany. The liberation symbolized by Werther's suit was illusory, he explains, as fashion itself quickly became a force for conformity as rigid as the sumptuary laws -- such as clothing ordinances -- of earlier centuries. Purdy examines the extraordinary influence of Frederick Bertuch'sMode Journal, which chronicled in obsessive detail the clothing and decorative trends in London, Paris, and other European capitals. He traces the elite reaction against fashion that followed the example of the king, Frederick the Great, who dressed poorly -- in worn and even dirty clothes -- to separate himself from the francophile fastidiousness typical of absolutist armies. The changing notions of personal appearance that swept Europe at the end of the eighteenth century, Purdy concludes, were more than simply new styles reflecting new political ideologies -- they indicated a fundamental shift in the epistemology of the subject and the body.

Book Description

prepared by Debra Moore Patterson ... Read more

Book Description

Known for its unified and logical structure, lively writing style, and clear explanations, this book provides access to the most current economic information available. Since the 6/e published, many things have affected our economy: the Presidential Election, the impact of the 9/11 tragedy, and the recession that we are all living through on a daily basis. The updated edition, written by two highly respected economists and educators, uses the “Stories, Graphs, and Equations” approach to make economic concepts accessible and relevant to a wide reading audience.A five-part organization covers an introduction to economics, concepts and problems in macroeconomics, goods and money markets, macroeconomic analysis, and the world economy.For individuals getting their first—and often challenging—look at the core concepts of economics. ... Read more