Customer Reviews

Principles of Microeconomics

5 star:		(16)
4 star:		(6)
3 star:		(0)
2 star:		(2)
1 star:		(4)

 

 

Joseph Schumpeter once encouraged his readers to make up their mind whether they wanted simple or useful answers, because both could not be had at the same time. Mankiw opts for the former option. A student who knows little about economics and who will be exposed to the discipline for the first time by using this textbook will get a very narrow view of economics. He or she will have no idea that there are strong disagreements about economic phenomena and even different schools of thought. This can be expected: Mankiw is a neoclassical economist, that school is dominant for one reason or another, so few would expect him to go out of his way to point out that there are different intellectual traditions in economics. However, Mankiw does not even bother much to point out disagreements within the mainstream either. For him, economics is a quasi-scientific discipline that clearly explains how things are; thus, economists disagree solely because of values.

That is a gross mischaracterization: neoclassical economists disagree a lot on theoretical issues, too. Mankiw's own colleague at Harvard - Dani Rodrik - described these disagreements mainly springing from the division between "first-best economists" and "second-best economists". The former group (Becker, Cowen, Mankiw) almost always finds a solution in the supply-demand framework and competitive markets. The latter group (Stiglitz, Rodrik, Akerlof) search for more nuanced and contextual explanations. Mankiw's only reference to "second-best" issues like imperfect information and behavioral economics is relegated to a couple paltry pages in the end of the book where it can be safely forgotten. The minimum wage is a case in point: Mankiw uses the simple supply-demand framework to "prove" that minimum wage causes unemployment. In fact, this view has lost popularity even among neoclassical economists. Recently over 600 American economists (including several Nobel laureates such as one of the fathers of modern neoclassical economics Kenneth Arrow!) signed the petition to increase the minimum wage in the US. Some of the most important research disproving Mankiw's claim has been done by people as mainstream as David Card (Berkeley) and Alan Krueger (Princeton).

Trade is another example. When arguing for "free" trade, Mankiw goes through possible counterarguments. The "infant industry" argument (supported by the "father" of economics Adam Smith himself) is dismissed after one paragraph. If these infant industries are of any promise, Mankiw proclaims, the private sector will take them up. Never mind uncertainty (not risk, but uncertainty). Never mind the fact that the US used protective barriers designed by Hamilton to allow its industries mature, never mind the fact that Japan and Korea developed using the same method. Never mind the fact that a very recent Commission on Growth and Development (which includes someone as mainstream as the Nobel laureate Bob Solow) concluded that "Government intervention in the economy, and a degree of protectionism, will be needed in the early stages of development".

My final example is the agency assumption. To act with a degree of self-interest is one thing, but to be a selfish and calculating sociopath is another. The mainstream is more and more open to alternative ideas about agency. Kenneth Arrow himself once said that if human beings were to act as utility-maximizers all the time, society and all of its social ties would be pretty much destroyed. The mainstream borrows more and more from behavioral economics, behavioral game theory, etc. Samuel Bowles, for one, does a good job of effectively combing the ideas of the mainstream with alternative ideas about agency. Of course, Mankiw does not care. I could go on, but I think this is enough.

Adbusters Magazine called "one of the most effective and talented propagandists of our times". That might be an exaggeration, but beware and hope that your instructor will add at least some nuance to Mankiw's exposition of economics. I was quite fortunate since my instructor, while thoroughly neoclassical, at least made sure to spell out the assumptions and point out which ones were more arbitrary than others (e.g. constant marginal utility of money in welfare economics) and when exactly economists are being sneaky (e.g. gains from free trade, even if all assumptions hold, are only a potential Pareto improvement). Some others may not be so lucky.

I would have given it 5 stars if the price was lower, but that's what you get for text books these days. It was still cheaper than buying it at Berkeley's bookstore.

I found this book to be very informative and well written whith good flow and easy to understand examples. The author brings current events into the world of Microeconomics, and allows the reader to understand the underlying mechanism that drives the decisions we make. When used in conjunction with a class, or by itself, this book provides the novice with a thorough understanding of the principles of Microeconomics.

This book is informative and easy to read, and a fine substitute for the 5th edition. You'll find, in micro- and macro economics, that the basic information doesn't really change so it's not much of a risk to go back an edition. My professor actually encouraged us to buy this edition and save ourselves a hundred bucks. Mind the chapter numbers and the question numbers if he/she assigns out of the book. All of the questions are exactly the same but some are switched around. Welcome to Economics!

Its not the best beginners microeconomics book. I wasn't a fan of learning through this book. I would suggest professors to not use this book in class. I basically passed the class with a B by using www. google . com as research material for my micro class.

Let me tell you my background: I'm a Electrical Engineer working on my PhD and wanted to broaden my horizon. I wanted to get into Business stuff which is totally new to me.
Let me tell you: This book is easy! Very easy to understand. If you are an undergrad or have no background whatsoever in the field of business you will understand Microeconomics after this book even if you are the dumbest kid on earth. You cannot simply not understand what he's talking about.
Everything is kept very simple and easy and he gives example which make a lot of sense.

Due to my background please take this review with a grain of salt since I have no background. That is I cannot really criticize the content since I don't know any better.
I also agree that it is sometimes too verbose kept. That is some things could certainly be explained on a few pages but I was fine with it since I didn't mind the extra time spent on reading stuff which I already understood.

However, I can not at all justify the price of (currently) ~$112. This is just way too much for a simple book. I spent $13 (shipped) on a used book and you should do so too.
Believe me: It has all the words and pages which you need for reading. :)

Summary:
This book is a great introduction if you have no clue about Econ and just want to start with it. I would really recommend it.

Mankiw could stand to learn how to say something concisely. There is so much word vomit to sort through in the is book if you just want to know a simple definition and equation. Also, the tone and word choice make me feel like Mankiw thinks I'm a 13 year old with nothing better to do than read his ill-formatted book.

Over-priced, over-wordy, under-helpful.

Great text so far however the problems vary between 4th editions based on weather or not it was made for the US or Canada!

I received this textbook in record time and it came exactly as was described by the seller. I am very pleased and look forward to buying from them again!

This is a very good introduction to ECO 100. The author, a Harvard professor, is a conservative, but he does not let his ideology interfere with teaching basic principles of economics. It's now available for $2 used, so why not get a copy, even if you're not in school? You'll learn a lot.

For what it's worth, I once contacted the author by e-mail and he responded quickly (faster than my actual ECO 100 teacher).

The book was everything I needed in more. My teacher told us that we could use this book for class instead of the new edition because it is the same book.