My Notes on Economics Textbooks

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  ·   economics   ·   study

I present my reviews of economics textbooks, emphasizing the importance of intuitive insights or the mindset for the field of study. Note that I did not complete reading all of the books listed below, so please only serve this note as an auxiliary resource for you to find your ideal self-studying material instead of formal critique.

Microeconmics

  1. Models in Microeconomic Theory by Martin J. Osborne and Ariel Rubinstein
    • Level: Intermediate - Advance
    • Readability: 4/5
    • Personal Preference: 5/5
    • Personally, I find it highly readable, but it does require mathematical maturity and familiarity with sets and relations. Once you become accustomed to the notation, it offers an abstract way to approach economic questions covered in undergraduate texts. This approach can further connect with mathematical operations, expanding one’s imagination about the field of economic theory.
  2. Advanced Microeconomic Theory by Geoffrey A. Jehle and Philip J. Reny
    • Level: Intermediate - Advance
    • Readability: 3.5/5
    • Personal Preference: 3.5/5
    • A standard textbook, which explains microeconomic theory in depth with mathematical details. It might be challenging to connect texts with the mathematics, though it reinforces the economic ideas and explains why we need advanced mathematics to understand microeconomic theory. Maybe more suitable for those with a stronger economic background rather than those from other related fields.

Econometrics

  1. Econometrics by Bruce E. Hensen
    • Level: Intermediate
    • Readability: 4/5
    • Personal Preference: 3/5
    • Recommended by many of my fellow classmates, this textbook introduces econometric methods quite straightforwardly, providing all the necessary formulas and important estimators. However, if one aims to grasp the mindset of econometrics with a clear understanding of all assumptions and purposes, there might be more suitable choices.
  2. Econometrics by Fumiyo Hayashi
    • Level: Intermediate - Advance
    • Readability: 3.5/5
    • Personal Preference: 5/5
    • My personal favorite. Hayashi’s textbook is concise with a unique approach that delves deeply into econometrics. However, it contains fewer examples than other textbooks and demands more mathematical rigor, especially in linear algebra. Nonetheless, the way it integrates linear algebra into econometrics is insightful, allowing one to easily derive assumptions from the mathematical equations.
  3. Econometric Analysis by Willian H. Greene
    • Level: Intermediate
    • Readability: 4/5
    • Personal Preference: 4.5/5
    • A textbook suitable for all, which I found takes longer to introduce econometric problems but then establishes a compelling narrative on how to approach them. Sometimes, it feels more like econometrics in economic research rather than focusing solely on econometric methods, but it’s still a great and worthwhile read.
  4. Econometric Analysis of Cross Section and Panel Data by Jerrey M. Wooldridge
    • Level: Advance
    • Readability: 5/5
    • Personal Preference: 4.5/5
    • A very good narrative for understanding why econometrics matters. The text, rather than mathematical derivation, comprises most of the book, but it clearly articulates the econometric problems that should be approached carefully in research, especially endogenous problems. After learning econometric theory, this book should serve as a robust reference for reinforcing the econometric mindset.

Other Topics

  1. Social and Economic Networks by Matthew O. Jackson
    • Level: Intermediate
    • Readability: 3.5/5
    • Personal Preference: 4/5
    • The first half of the book covers the fundamentals of graphs and social networks, while the rest delves into decision theory and social learning. It provides detailed mathematical foundation for networks which may be scary at beginning, but the notation for network games is presented clearly. Microeconomic concepts play a crucial role in the textbook, and the game set ups are standard.
  2. Handbook of Social Economics by Jess Benhabib et al.
    • Level: Advance
    • Readability: 2/5
    • Personal Preference: 4.5/5
    • A collection of network research in economics with thesis questions stated for readability. Edited based on research papers, the theses are explained by referencing noteworthy papers with advanced methodologies compared to textbooks. It serves as a particularly great reference for individuals working on empirical social network research with a strong microeconomic foundation.
  3. Multiagent system by Yoav Shoham and Kevin Leyton-Brown
    • Level: Advance
    • Readability: 4/5
    • Personal Preference: 3.5/5
    • This book focuses on algorithms for approaching Bayes-Nash equilibria while also covering microeconomic concepts. It serves as a valuable reference for algorithmic thinking. The book provides numerous examples, but it may not be as friendly for those who are only experted in either algorithms or game theory.