BOOKS THAT EVERY ECONOMIST SHOULD READ
7/
I would highly recommend this book to anyone that is studying economics at undergraduate level, particularly if you do not have a strong background in mathematics. This is a fantastic book that covers all the major topics in mathematics that are relevant to economics.
Teresa Bradley has written the book in such a way that assumes the reader has little experience in mathematics. That is, each chapter begins from a basic starting point and gets progressively more difficult with worked examples throughout and exercises at the end of each section. Bradley covers topics from simple mathematical preliminaries, linear equations, and an introduction to financial mathematics, to more complicated topics such as partial differentiation and constrained optimisation.
Essential Mathematics for Economics and Business
by Teresa Bradley
6/
Steven Levitt is the economist behind the best-selling Freakonomics series of books. Levitt earned his undergraduate degree from Harvard University and his PhD from the Massachusetts Institute of Technology in 1994; and, he is currently a Professor at the University of Chicago.
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In Freakonomics, the authors approach a variety of unusual topics, from Sumo wrestlers to drug dealers, that are not usually covered by traditional economics. They use data and economic analysis to explain rather surprising phenomena within these unusual subject areas.
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This is a great book for anyone that is starting to develop an interest in economics, it's very easy to read, yet teaches an important aspect of economics - namely, keeping an open mind and using data to draw conclusions instead of being influenced by your own personal opinions or views.
Freakonomics
by Steven Levitt and Stephen Dubner
5/
Eamonn Butler is the co-founder and director of the Adam Smith Institute, a leading policy think tank based in the U.K., that advocates free market and classical liberal ideas. Butler's book gives the reader a brief introduction to Public Choice Theory. He explores the history of public choice; introduces key public choice ideas and concepts (while providing extensive evidence/ cases to support public choice theory); and, he identifies the current and future direction of public choice theory.
According to Butler, "Public Choice applies the methods of economics to the theory and practice of politics and government". In other words, public choice theory makes the simple argument that we should make the same assumptions with respect to human behaviour in the political sphere, as we make when using economics to analyse other areas of life such as financial markets, consumer behaviour, and so on. However, the impact of this simple position is far-reaching, as public choice analyses a number of obscures aspects within our political system.
Public Choice - A Primer
by Eamonn Butler
4/
Gary Becker (1930 - 2014) received his B.A. from Princeton University in 1951 before going on to earn his Doctorate at the University of Chicago in 1955. Aside from a brief stint at the University of Columbia, Becker would spend the majority of his academic career at the University of Chicago, being a leader of the third generation of the Chicago School of Economics. In 1992, Becker was awarded the Nobel Memorial Prize in Economic Sciences for"having extended the domain of microeconomic analysis to a wide range of human behaviour and interactions, including non-market behaviour".
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In his book, Uncommon Sense: Economic Insights from Marriage to Terrorism, Becker illustrates how economic analysis can be applied to a variety of uncommon topics to develop insights and a deeper understanding, which can be useful to policymakers and the general public. The book is divided into twelve sections covering topics ranging from jobs and employment to crime and punishment; with each section having subsections covering a variety of interesting topics. Overall, this book is very insightful and it shows the breadth and utility of economics analysis when economics is applied to unconventional topics.
Uncommon Sense: Economic Insights from Marriage to Terrorism
by Gary Becker and Richard Posner
3/
John Stuart Mill (1806 - 1873) was a British philosopher, political economist, and Member of Parliament. Most noteworthy, however, was his contribution to the political idealogy of Classical Liberalism - Mill is arguably one of the most influential thinkers in the history of Classical Liberalism.
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In his essay or book, On Liberty, Mill lays the foundations, from a philosophical and societal/ political perspective, of the key elements of classical liberalism. In essence, Mill argues for the freedom of individuals being inalienable/ god-given, as opposed to individuals being granted rights by the state. Accordingly, classical liberalism proposes a society in which individuals are free to pursue their own self-interest, as long as it does not infringe on the rights of others. This results in a need for a limited government; otherwise, the state will directly or indirectly interfere with the rights of individuals and limit their freedom.
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Although On Liberty is not written from an economic perspective, it is a vital book for economists to read, as it highlights the merits of free-market capitalism from a philosophical and political perspective.
On Liberty
by John Stuart Mill
2/
Thomas Schelling (1921 - 2016) earned his undergraduate degree in economics from the University of California, Berkely in 1944 before earning his PhD from Harvard University in 1951, before achieving an accomplished career with a mixture of academia and public service. Schelling would eventually be awarded the Memorial Prize in Economic Sciences in 2005 for "having enhanced our understanding of conflict and cooperation through game-theory analysis."
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His book, The Strategy of Conflict, is one of the most important books in game theory. In it, Schelling introduced a variety of concepts to the literature and established a means for studying "conflict behaviour" via bargaining and strategic behaviour. The book is composed of theoretical ideas, the results of experiments that he conducted with his students, intuitive examples to help the reader understand, and vital applications of game theory, including applying game theory to nuclear conflict.
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Overall, this book is a must-read for anyone that is interested in studying game theory within economics, or strategy, in general.
The Strategy of Conflict
by Thomas C. Schelling
1/
Milton Friedman (1912 - 2006) is one of the most influential economists of all time, and one of the key figures associated with the Chicago School of Economics. Friedman was awarded the 1976 Nobel Memorial Prize in Economics for his work on consumption analysis and monetarism. Furthermore, Friedman influenced several political figures throughout the 20th Century including U.K. Prime Minister Margaret Thatcher and U.S. President Ronald Regan.
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In his book, Capitalism and Freedom, Friedman argues that capitalism - specifically, free-market capitalism - is a necessary, but not a sufficient, condition for freedom. Meaning, for individuals to be free, Friedman believes a necessary condition is free-market capitalism; however, this is not sufficient on its own, as there can still be oppressive governments and laws that restrict people's freedom. On the other hand, without free-market capitalism, individuals will never be free as a portion of their life is still being controlled and influenced by the State or government.
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In Capitalism and Freedom, Friedman covers a variety of topics ranging from monetary policy to conscription - he stated that one of his proudest achievements was influencing public debate to eventually abolish conscription (or, the draft) in the United States. I cannot recommend this book highly enough for anyone that is interested in developing their understanding of free-market economics and liberty, in general.
Capitalism and Freedom
by Milton Friedman
