On the latter question, the answer is that the conventional criticism has set the tone for a popular view that economists are, although wrong, extremely powerful: evil Svengalis of government policy. The risk is that public opinion turns against influence of economics on public policy - at a time when the hidden renaissance in economics during the past twenty years or so has vastly increased its potential contribution to public policy.
The Concise Encyclopedia of Economics
In Britain there have been a number of important institutional reforms and innovations which ask people to trust economics - the Bank of England's monetary-policy committee , an independent Competition Commission , evidence-based assessments of public-service reform, auctions, the extension of congestion charging among them.
There could be many others with the potential to improve policies based on a growing body of careful evidence, thanks to the impact of computers and new data sets during the past twenty years. The quality of outcomes will be greatly impoverished if voters distrust the technical economic decision-making behind such policies. What about the first question - why do people hate us, still, after all these years? We certainly haven't done ourselves great favours. Economists are typically very bad at communicating, and lag behind natural scientists in grasping the need to engage with public opinion in a new way.
But at the heart of it, I believe, is the reluctance of many people to accept that human behaviour can appropriately be modelled at all - that is, adequately described at a general level in a few relatively simple rules. David Hume, one of the first economists, set out the original agenda in his advocacy of a "science of human nature", and the economics of today has returned to this Enlightenment programme.
I believe as I argue in my book The Soulful Science that economics offers a uniquely powerful way of thinking about society, and how individuals make choices in their social context.
ala homepage quick links
Other approaches, those of the other social sciences, or history or literature and music, are valid too - I feel no need to dismiss them. But only economics with its choice-based models emphasises the opportunity costs and trade-offs that inevitably arise from the social and physical realities of our existence. That's just the tip of the iceberg: we've got many more leads to chase down. Find out more and support our work here.
Make a donation. The central character in this discussion, economic historian Angus Maddison, is known for having estimated GDP and growth rates for almost two hundred nations dating back to the year A. Hence, economists provide the extremely vital service of collecting and maintaining important data sets. The next thing economists do, once the data are in place, is test theories and refine their tools of analysis.
With this in mind, the second and third chapters are primarily concerned with the evolution of post-neoclassical endogenous growth theory. Along with the advent of powerful computers and increasingly sophisticated econometrics, the massive data expansion has enabled empiricists to treat previously exogenous variables as endogenous. This has led to both a testing of long-accepted growth theories i. Such theoretical developments in turn enable policymakers to better address — and potentially fix — vexing social issues, such as poverty.
Clearly the implications of these synergies are profound.
- The Grace of God.
- Spanish Castle Magic.
- Think Jung! How I Found Meaning in My Life: A Memoir.
She devotes the middle three chapters to an introspective examination of several key assumptions generally made by economists. Each is constructed with emphasis on a particular aspect considered important to its promoters.
The Company of Strangers
After much consideration, Coyle concludes that GDP is a pretty good measurement of well-being after all, and that any permutations that push us away from it unnecessarily damage consensus and, therefore, our collective credibility. Not all innovative work is viewed so skeptically, however.
He wrote my textbook when I was an undergraduate — which was a very long time ago. This is a book about how companies do research, put it into practice and develop new products and services. So Will Baumol looks at examples of the kinds of innovations small companies have introduced compared to the improvements that the big ones do. You need them both. This book launched an entire literature looking at the detail of innovation, and what different companies actually do, in much greater detail than had been brought together before.
So this was an important area of economics that you felt had been understudied before. People have become much more interested in innovation as a whole, because the impact of the computer and biomedical technologies on overall productivity growth has been quite widely recognised since just after In the early days of the new economy, there were quite a lot of sceptics about whether it was having any impact on the economy as a whole, and the long-term growth rate.
But by , when this book was published, this was coming to be much more widely accepted. It explains the work of John Nash, who was one of the leading lights of game theory.
The Soulful Science on Apple Books
I chose it because game theory is such an important technique in economics and other sciences as well, particularly biology. But books about game theory tend to be pretty heavy going. This is a terrific book for just saying something about what game theory helps to do without plunging you into all the complicated mathematics of how to do it in practice.
What is something likely to make them do?
Game theory was devised and applied originally in the context of making strategic decisions about warfare and the Cold War and nuclear weapons. But you can think about voting behaviour and political choices, you can think about economic decisions, you can think about business strategy. Pretty much any context, you can think about in terms of game theory: If he does this, then what do I do?
Five Books aims to keep its book recommendations and interviews up to date. If you are the interviewee and would like to update your choice of books or even just what you say about them please email us at editor fivebooks. Five Books interviews are expensive to produce. If you've enjoyed this interview, please support us by donating a small amount. We ask experts to recommend the five best books in their subject and explain their selection in an interview. This site has an archive of more than one thousand interviews, or five thousand book recommendations.
We publish at least two new interviews per week. Five Books participates in the Amazon Associate program and earns money from qualifying purchases. Support Us.
Buy all books Read. Diane Coyle. Save for later Kindle. Barry Eichengreen on The Euro.