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This paper is a critical review of and a reader's guide to a collection of papers by Robert E. Lucas, Jr. about fruitful ways of using general equilibrium theories to understand measured economic aggregates. These beautifully written and wisely argued papers integrated macroeconomics, microeconomics, finance, and econometrics in ways that restructured big parts of macroeconomic research. (JEL A31, E00, E13, E50) [ABSTRACT FROM AUTHOR]

Editor's Note Our policy is to annotate all English-language books on economics and related subjects that are sent to us. A very small number of foreign-language books are called to our attention and annotated by our consulting editors or others. Our staff does not monitor and order books published; therefore, if an annotation of a book does not appear six months after the publication date, please write to us or the publisher concerning the book. [ABSTRACT FROM AUTHOR]

Yaw Nyarko of New York University and the Division of Social Sciences, New York University Abu Dhabi, reviews 'The Economy of Ghana Sixty Years after Independence,' edited by Ernest Aryeetey and Ravi Kanbur. The Econlit abstract of this book begins: 'Twenty-three papers analyze and assess the challenges facing Ghana's economy, covering major macroeconomic and sectoral issues, as well as social issues.' [ABSTRACT FROM AUTHOR]

Editor's Note Our policy is to annotate all English-language books on economics and related subjects that are sent to us. A very small number of foreign-language books are called to our attention and annotated by our consulting editors or others. Our staff does not monitor and order books published; therefore, if an annotation of a book does not appear six months after the publication date, please write to us or the publisher concerning the book. [ABSTRACT FROM AUTHOR]

Peter Boettke of George Mason University reviews 'Liberalism and the Welfare State: Economists and Arguments for the Welfare State,' edited by Roger E. Backhouse, Bradley W. Bateman, Tamotsu Nishizawa, and Dieter Plehwe. The Econlit abstract of this book begins: 'Ten papers explore the role of economists in laying the intellectual foundations for arguments for and against the welfare state, illustrating the complexity of the relationship between liberalism and the welfare state in the twentieth century through case studies of Britain, Germany, and Japan.' [ABSTRACT FROM AUTHOR]

Editor's Note Our policy is to annotate all English-language books on economics and related subjects that are sent to us. A very small number of foreign-language books are called to our attention and annotated by our consulting editors or others. Our staff does not monitor and order books published; therefore, if an annotation of a book does not appear six months after the publication date, please write to us or the publisher concerning the book. [ABSTRACT FROM AUTHOR]

Markus Poschke of McGill University reviews 'The World Economy: Growth or Stagnation?' by Dale W. Jorgenson, Kyoji Fukao, and Marcel P. Timmer. The Econlit abstract of this book begins: 'Fourteen papers analyze the long-term process of structural change and productivity growth across the world using World KLEMS (capital, labor, energy, materials, and purchased services) Initiative research and provide comparisons of industries and economies in order to investigate the impact of international trade and investment. Papers discuss US economic growth-a retrospect, prospect, and lessons from a prototype industry-level production account for the United States, 1947-2012; the structural causes of Japan's lost decades; productivity growth in Europe before and since the 2008-09 economic and financial crisis; Latin American KLEMS (LA-KLEMS)-economic growth and productivity in Latin America; China's strategic move for a new stage of development-a productivity perspective; productivity growth in India under different policy regimes; whether mining is fueling long-run growth in Russia-industry productivity growth trends in 1995-2012; intangibles, information and communications technology, and industry productivity growth-evidence from the European Union; whether intangibles contribute to productivity growth in East Asian countries-evidence from Japan and the Republic of Korea; a Bureau of Economic Analysis-Bureau of Labor Statistics industry-level production account for the United States-integrated sources of growth, intangible capital, and the US recovery; measuring human capital-country experiences and international initiatives; a half-century of trans-Pacific competition-price-level indices and productivity gaps for Japanese and US industries, 1955-2012; searching for convergence and its causes-an industry perspective; and the rise of global manufacturing value chains-a new perspective based on the World Input-Output Database. Jorgenson is Samuel W. Morris University Professor at Harvard University. Fukao is Professor with the Institute of Economic Research at Hitotsubashi University and Program Leader at the Research Unit for Statistical and Empirical Analysis. Timmer is Professor of Economic Growth and Development and Director of the Groningen Growth and Development Centre at the University of Groningen. ' [ABSTRACT FROM AUTHOR]

Robert Moffitt of Johns Hopkins University reviews 'Secrets of Economics Editors', by Michael Szenberg and Lall Ramrattan. The Econlit abstract of this book begins: 'Twenty-four papers, some originally published in the American Economist, present reflections on the practices and experiences of past and present editors of economics journals. Papers focus on economic theory and finance; the history of economics; microeconomics and industrial organization; microeconomics; the methodology of economics; managerial economics; money and banking; urban economics; the economics of public choice; the economics of sports; economic development; the economics of education; general economics; and the journal editorial cycle and practices. Szenberg is Distinguished Professor of Economics in the Lubin School of Business at Pace University. Ramrattan is Instructor of Economics at the University of California, Berkeley.' [ABSTRACT FROM AUTHOR]

Editor's Note Our policy is to annotate all English-language books on economics and related subjects that are sent to us. A very small number of foreign-language books are called to our attention and annotated by our consulting editors or others. Our staff does not monitor and order books published; therefore, if an annotation of a book does not appear six months after the publication date, please write to us or the publisher concerning the book. [ABSTRACT FROM AUTHOR]

Valpy FitzGerald of the University of Oxford reviews 'Inequality and Growth: Patterns and Policy. Volume II. Regions and Regularities,' edited by Kaushik Basu and Joseph E. Stiglitz. The Econlit abstract of this book begins: 'Eight papers and eight responses, based on a roundtable convened by the International Economic Association and the World Bank on 'Shared Prosperity and Growth' and held at Dead Sea, Jordan, in June 2014, examine the state of global inequality and inequality in different regions, and analyzes other kinds of inequality and discrimination.' [ABSTRACT FROM AUTHOR]

Surender Kumar of Delhi School of Economics, University of Delhi reviews 'New Directions in Productivity Measurement and Efficiency Analysis: Counting the Environment and Natural Resources,' edited by Tihomir Ancev, M. A. Samad Azad, and Francesc Hernández-Sancho. The Econlit abstract of this book begins: 'Eleven papers explore novel research perspectives at the intersection of environmental/natural-resource economics and productivity analysis, emphasizing the link between productivity and efficiency measurement and environmental impacts.' [ABSTRACT FROM AUTHOR]

Nejat Anbarci of Deakin University reviews 'The Economics of Conflict: Theory and Empirical Evidence', by Karl Wärneryd. The Econlit abstract of this book begins: 'Nine papers, originally presented at a CESifo Summer Institute workshop in San Servolo in July 2011, present a rational-choice perspective on conflict using methodological approaches that range from the game theoretic to the experimental. Papers discuss the strategic aspects of fighting in alliances; fiscal equalization and political conflict; natural resources, social conflict, and the poverty trap; power structure and the stability of regimes; the probability of military rule in Africa, 1970 to 2007; sociopolitical conflict and economic performance in Bolivia; occupational choices and insurgency in Afghanistan's provinces; social unrest in the wake of IMF structural adjustment programs; and social preferences of excombatants-survey and experimental evidence from postwar Tajikistan. Wärneryd is Associate Professor of Economics at the Stockholm School of Economics.' [ABSTRACT FROM AUTHOR]

Amanda Griffith of Wake Forest University reviews 'The Economics of Tax Policy,' by Alan J. Auerbach and Kent Smetters. The Econlit abstract of this book begins: 'Eleven papers, prepared for a conference held at the Brookings Institution in December 2015, plus commentary, present nontechnical reviews of insights gained from recent economic research that can inform the policy process and provide an overview of the major areas of tax analysis. Papers discuss tax reform in a changing economy; effects of income-tax changes on economic growth; environmental taxation; tax compliance and enforcement-an overview of new research and its policy implications; economic and distributional effects of tax-expenditure limits; tax benefits for college attendance; tax policy toward low-income families; the economics of corporate- and business-tax reform; US capital gains and estate taxation-a status report and directions for a reform; tax policy and retirement savings; and fundamental tax reform-a comparison of three options. Auerbach is Robert D. Burch Professor of Economics and Law and Director of the Burch Center for Tax Policy and Public Finance at the University of California, Berkeley. Smetters is Boettner Chair Professor with the Wharton School at the University of Pennsylvania.' [ABSTRACT FROM AUTHOR]

Jeffrey V. Butler of EIEF and University of Nevada, Las Vegas reviews 'Experimenting with Social Norms: Fairness and Punishment in Cross-Cultural Perspective', by Jean Ensminger and Joseph Henrich. The Econlit abstract of this book begins: 'Seventeen papers, plus thirteen case studies available for download only, explore the historical emergence of prosocial norms and their relationship to economic growth. Papers in the text discuss theoretical foundations─the coevolution of social norms, intrinsic motivation, markets, and the institutions of complex societies; cross-cultural methods, sites, and variables; major empirical results─markets, religion, community size, and the evolution of fairness and punishment; and double-blind dictator games in Africa and the United States─differential experimenter effects. Case studies available for download discuss Hadza behavior in three experimental economic games; the effects of sanctions and third-party enforcers on generosity in Papua New Guinea; an experimental investigation of dictators, ultimatums, and punishment; behavioral experiments in the Yasawa Islands, Fiji; economic game behavior among the Shuar; economic experimental game results from the Sursurunga of New Ireland, Papua New Guinea; Maragoli and Gusii farmers in Kenya─strong collective action and high prosocial punishment; sharing, subsistence, and social norms in Northern Siberia; the influence of property rights and institutions for third-party sanctioning on behavior in three experimental economic games; cooperation and punishment in an economically diverse community in highland Tanzania; social preferences among the people of Sanquianga in Colombia; the effects of birthplace and current context on other-regarding preferences in Accra; and prosociality in rural America─evidence from dictator, ultimatum, public goods, and trust games.' Ensminger is Edie and Lew Wasserman Professor of Social Sciences at the California Institute of Technology. Henrich is Professor and Canada Research Chair in Culture, Cognition, and Coevolution in the Economics and Psychology Departments at the University of British Columbia. [ABSTRACT FROM AUTHOR]

Bertram Schefold of FB Wirtschaftswissenschaften, Goethe-Universität reviews 'The German Historical School and European Economic Thought,' edited by José Luís Cardoso and Michalis Psalidopoulos. The Econlit abstract of this book begins: 'Twelve papers address the question of the diffusion of ideas and teachings related to the German historical school (GHS) in selected European countries between 1850 and 1930 and explore the interconnections between economic thought, economic policy, nationalism, and cosmopolitanism, as well as the continued legacy of the GHS.' [ABSTRACT FROM AUTHOR]

Peter Debaere of Darden Business School, University of Virginia reviews 'Water Pricing Experiences and Innovations', by Ariel Dinar, Victor Pochat, and Jose Albiac-Murillo. The Econlit abstract of this book begins: 'Twenty-two papers examine water pricing experiences in various countries from 2000 to 2015. Papers discuss water pricing in Australia-unbundled politics, accounting, and water pricing; water pricing in Brazil-successes, failures, and new approaches; water pricing in Canada-recent developments; water pricing in Chile-decentralization and market reforms; water pricing in China- the impact of socioeconomic development; water pricing in Colombia-the transition from bankruptcy to full-cost recovery; water pricing in France-moving toward more incentives to conserve water; water pricing experiences in India-emerging issues; water pricing in Israel-various waters, various neighbors; water pricing in Italy-beyond full-cost recovery; water pricing in Mexico-pricing structures and implications; water pricing in the Netherlands; New Zealand water pricing; water pricing-the case of South Africa; water pricing in Spain-following the footsteps of somber climate change projections; introducing new mechanisms into water pricing reforms in China; how to integrate social objectives into water pricing; sustainable water rate design at the Western Municipal Water District-the art of revenue recovery, water use efficiency, and customer equity; pricing urban water services in the developing world-the case of Guayaquil, Ecuador; the price for domestic water supply-an innovative method developed for the Tucano aquifer in the state of Bahia, Brazil; pricing for reclaimed water in Valencia, Spain-externalities and cost recovery; and pricing municipal water and wastewater services in developing countries-whether utilities are making progress toward sustainability. Dinar is a professor of environmental economics and policy with the School of Public Policy at the University of California, Riverside. Pochat is a professor at the National University of Litoral. Albiac-Murillo is a researcher at the Agrifood Research and Technology Center and a professor at the University of Zaragoza.' [ABSTRACT FROM AUTHOR]

Brendan K. Beare of the University of California, San Diego reviews 'Convolution Copula Econometrics,' by Umberto Cherubini, Fabio Gobbi, and Sabrina Mulinacci. The Econlit abstract of this book begins: 'Gathers the main concepts of copula function theory and applies them to the analysis of time series, addressing the relationship between copula functions and Markov processes. Discusses the dynamics of economic variables; the estimation of copula models; copulas and estimation of Markov processes; convolution-based processes; and application to interest rates. Cherubini, Gobbi, and Mulinacci are at the University of Bologna. ' [ABSTRACT FROM AUTHOR]

Christophre Georges of the Department of Economics, Hamilton College reviews 'Economics with Heterogeneous Interacting Agents: A Practical Guide to Agent-Based Modeling,' edited by Alessandro Caiani, Alberto Russo, Antonio Palestrini, and Mauro Gallegati. The Econlit abstract for this book begins: 'Text for graduate and PhD students, as well as undergraduates with some knowledge of computers and economics comprises four papers emerging from a workshop on agent-based modeling held by the Dipartimento di Scienze Economiche e Sociali at the Università Politecnica delle Marche. Presents a guide to agent-based models (ABM) and the technicalities that need to be solved in order to evaluate the effect of different rules and their switching.' [ABSTRACT FROM AUTHOR]

Benjamin Williams of George Washington University reviews 'Structural Econometric Models', by Eugene Choo and Matthew Shum. The Econlit abstract of this book begins: 'Twelve papers explore recent developments in the use of structural econometric models in empirical economics. Papers discuss Euler equations for the estimation of dynamic discrete choice structural models; approximating high-dimensional dynamic models-sieve value function iteration; identifying dynamic games with serially correlated unobservables; partial identification in two-sided matching models; identification of matching complementarities-a geometric viewpoint; comparative static and computational methods for an empirical one-to-one transferable utility matching model; a test for monotone comparative statics; estimating supermodular games using rationalizable strategies; estimation of the loan spread equation with endogenous bank-firm matching; the collective marriage matching model- identification, estimation, and testing; deflation in durable goods markets-an empirical model of the Tokyo condominium market; and a dynamic analysis of the U.S. cigarette market and antismoking policies. Choo is with the Department of Economics at the University of Calgary. Shum is with the Division of Humanities and Social Sciences at the California Institute of Technology.' [ABSTRACT FROM AUTHOR]

We review Immigration Economics by George J. Borjas, published in 2014 by Harvard University Press. The book is written as a graduate-level textbook, and summarizes and updates many of Borjas's important contributions to the field over the past thirty years. A key message of the book is that immigration poses significant costs to many members of the host-country labor market. Though the theoretical and econometric approaches presented in the book will be very useful for students and specialists in the field, we argue that the book presents a one-sided view of immigration, with little or no attention to the growing body of work that offers a more nuanced picture of how immigrants fit into the host-country market and affect native workers. (JEL A22, J11, J24, J31, J61, R23) [ABSTRACT FROM AUTHOR]

Theodore Burczak of Denison University reviews 'Documents Related to John Maynard Keynes, Institutionalism at Chicago and Frank H. Knight', by Ross B. Emmett. The Econlit abstract of this book begins: 'Eight papers explore topics related to John Maynard Keynes, institutionalism at the University of Chicago, and Frank H. Knight. Papers discuss the original 1933 'National Self-Sufficiency' lecture by Keynes-its political economic context and purpose (Mark C. Nolan); 'National Self-Sufficiency' (Keynes); studying institutional economics at Chicago in the 1930s-the case of Arthur Bloomfield (Pier Francesco Asso and Luca Fiorito); Thorstein Veblen and his analysis of business enterprise (Bloomfield); Knight on institutionalism and economics (Ross B. Emmett); institutional history and the classical economics (Knight); the friendship of Knight and Frederick D. Kershner (Emmett); and the correspondence between Knight and Kershner, 1915-51 (Emmett). Emmett is at James Madison College at Michigan State University.' [ABSTRACT FROM AUTHOR]

Inas Kelly of Queens College, City University of New York reviews 'The End Game: How Inequality Shapes Our Final Years,' by Corey M. Abramson. The Econlit abstract of this book begins: 'Paperback edition of 2015 text illustrates how key mechanisms of social stratification structure everyday life in old age and how the unique practical and symbolic aspects of old age make it an important axis of American inequality.' [ABSTRACT FROM AUTHOR]

David Colander of Middlebury College reviews 'Economic Ideas You Should Forget,' edited by Bruno S. Frey and David Iselin. The Econlit abstract of this book begins: 'Clickworthy titles are 40 percent of a successful book, and the authors have chosen a great title. It's intriguing, it has the right diss to it, and it makes one wonder what's inside.' [ABSTRACT FROM AUTHOR]

Bryony Reich of Northwestern University reviews 'The Oxford Handbook of the Economics of Networks,' edited by Yann Bramoulle, Andrea Galeotti, and Brian Rogers. The Econlit abstract for this book begins: 'Thirty papers present current research on economic applications of networks, including the study of exchange markets, the recent financial crisis, international trade, migration, development, and the labor market.' [ABSTRACT FROM AUTHOR]

Arthur M. Diamond of the University of Nebraska Omaha reviews 'Milton Friedman: Contributions to Economics and Public Policy,' edited by Robert A. Cord and J. Daniel Hammond. The Econlit abstract for this book begins: 'Forty papers examine Milton Friedman's contributions to economics and his place in economic thought and public policy.' [ABSTRACT FROM AUTHOR]

Tatiana Kirsanova of the University of Glasgow reviews 'Central Bank Governance and Oversight Reform,' edited by John H. Cochrane and John B. Taylor. The Econlit abstract for this book begins: 'Six papers examine the Federal Reserve System, addressing questions about how it should adjust interest rates, how its governance structure and its understanding of monetary policy have influenced its actions, and the overall value of the regional bank structure.' [ABSTRACT FROM AUTHOR]

China's dramatic rise from poverty to global economic prominence has been accompanied by an equally dramatic increase in environmental damages. The book under review presents an exploration of economic and political economy factors that might bring about a reversal in emissions that contribute to high pollution loadings in large urban areas. The authors highlight preference shifts associated with rapid growth of per capita income and express optimism about government responses to demands for a cleaner environment. There are some indications that China's largest cities are indeed getting cleaner air. However, total emissions (largely from heavy industry and coal-fired energy generators) continue to rise, and the mechanisms by which preference shifts turn into policy changes remain opaque. It may be that China's most polluting industries are sorting into localities where either preferences for clean air are less pronounced or local governments are less responsive. This may match a positively selected counterflow of individuals seeking better environmental amenities and more responsive government. (JEL O13, O44, P28, Q53, Q56, Q58) [ABSTRACT FROM AUTHOR]

Christopher J. Waller of the Federal Reserve Bank of St. Louis reviews 'The Myth of Independence: How Congress Governs the Federal Reserve,' by Sarah Binder and Mark Spindel. The Econlit abstract of this book begins: 'Explores the political and economic catalysts that transformed the Federal Reserve's development during its first one hundred years, contextualizing Congress's existential role in driving the evolution of the Fed.' [ABSTRACT FROM AUTHOR]

Nathaniel Hendren of Harvard University reviews 'Insurance and Behavioral Economics: Improving Decisions in the Most Misunderstood Industry', by Howard C. Kunreuther, Mark V. Pauly, and Stacey McMorrow. The Econlit abstract of this book begins: 'Explores the behavior of individuals at risk, insurance industry decision-makers, and policymakers at the local, state, and federal levels involved in the selling, buying, and regulating of insurance. Discusses an introduction to insurance in practice and theory; anomalies and rumors of anomalies; behavior consistent with benchmark models; real-world complications; why people do or do not demand insurance; demand anomalies; descriptive models of insurance supply; anomalies on the supply side; design principles for insurance; strategies for dealing with insurance-related anomalies; innovations in insurance markets through multiyear contracts; publicly provided social insurance; and a framework for prescriptive recommendations. Kunreuther is James G. Dinan Professor of Decision Sciences and Business and Public Policy in the Wharton School and Co-director of the Wharton Risk Management and Decision Processes Center at the University of Pennsylvania. Pauly is Bendheim Professor in the Department of Health Care Management in the Wharton School at the University of Pennsylvania. McMorrow is a research associate in the Health Policy Center at the Urban Institute.' [ABSTRACT FROM AUTHOR]

Joshua D. Gottlieb of University of British Columbia and NBER reviews 'Housing Markets and the Economy: Risk, Regulation, and Policy: Essays in Honor of Karl E. Case', edited by Edward L. Glaeser and John M. Quigley. The Econlit abstract of this book begins: 'Ten papers, plus commentary, collected in honor of Karl Case, examine topics in housing markets and the economy. Papers discuss Case, housing, and the economy; derivatives markets for home prices; home equity insurance-a pilot project; spatial variation in the risk of home owning; arbitrage in housing markets; subprime mortgages-what, where, and to whom?; government-sponsored enterprises, the Community Reinvestment Act, and home ownership in targeted undeserved neighborhoods; siting, spillovers, and segregation-a reexamination of the low-income housing tax credit program; measuring land use regulations and their effects in the housing market; whether real estate agents compete on price- evidence from seven metropolitan areas; and the role of job creation and job destruction dynamics. Glaeser is Fred and Eleanor Glimp Professor of Economics at Harvard University. Quigley is I. Donald Terner Distinguished Professor at the University of California at Berkeley.' [ABSTRACT FROM AUTHOR]