Economics

Arthur O’Sullivan is a professor of economics at Lewis and Clark College in Portland, Oregon. After receiving his BS in economics at the University of Oregon, he spent two years in the Peace Corps, working with city planners in the Philippines. He received his PhD in economics from Princeton University in 1981 and has taught at the University of California, Davis, and Oregon State University, winning teaching awards at both schools. He is the author of the best-selling textbook Urban Economics, currently in its 10th Edition, with translations into Russian, Chinese, Korean, Portuguese, Serbian, and Greek. Professor O’Sullivan’s research explores economic issues concerning urban land use, environmental protection, and public policy. His articles have appeared in many economics journals, including the Journal of Urban Economics, Journal of Environmental Economics and Management, National Tax Journal, Journal of Public Economics, and Journal of Law and Economics. Professor O’Sullivan lives with his family in Portland, Oregon. For recreation, he enjoys hiking, kiteboarding, and squash.   Steven M. Sheffrin is professor of economics and executive director of the Murphy Institute at Tulane University. Prior to joining Tulane in 2010, he was a faculty member at the University of California, Davis, and served as department chairman of economics and dean of social sciences. He has been a visiting professor at Princeton University, Oxford University, London School of Economics, and Nanyang Technological University, and he has served as a financial economist with the Office of Tax Analysis of the United States Department of the Treasury. He received his BA from Wesleyan University and his PhD in economics from the Massachusetts Institute of Technology.  Professor Sheffrin is the author of 10 other books and monographs and over 100 articles in the fields of macroeconomics, public finance, and international economics. His most recent books include Rational Expectations (2nd Edition) and Property Taxes and Tax Revolts: The Legacy of Proposition 13 (with Arthur O’Sullivan and Terri Sexton). Professor Sheffrin has taught macroeconomics and public finance at all levels, from general introduction to principles classes (enrollments of 400) to graduate classes for doctoral students. He is the recipient of the Thomas Mayer Distinguished Teaching Award in economics. He lives with his wife Anjali (also an economist) in New Orleans, Louisiana, and has two daughters who have studied economics. In addition to a passion for current affairs and travel, he plays a tough game of tennis.   Stephen J. Perez is Vice Provost, a professor of economics, and NCAA faculty athletics representative at California State University, Sacramento. After receiving his BA in economics at the University of California, San Diego, he was awarded his PhD in economics from the University of California, Davis, in 1994. He taught economics at Virginia Commonwealth University and Washington State University before coming to California State University, Sacramento, in 2001. He teaches macroeconomics at all levels as well as econometrics, sports economics, labor economics, and mathematics for economists. Professor Perez’s research explores most macroeconomic topics. In particular, he is interested in evaluating the ability of econometric techniques to discover the truth, issues of causality in macroeconomics, and sports economics. His articles have appeared in many economics journals, including the Journal of Monetary Economics; Econometrics Journal; Economics Letters; Journal of Economic Methodology; Public Finance and Management; Journal of Economics and Business; Oxford Bulletin of Economics and Statistics; Journal of Money, Credit, and Banking; Applied Economics; and Journal of Macroeconomics.

• Brief Contents PART 1: INTRODUCTION AND KEY PRINCIPLES Introduction: What Is Economics?The Key Principles of EconomicsExchange and MarketsDemand, Supply, and Market EquilibriumPART 2: THE BASIC CONCEPTS IN MACROECONOMICS Measuring a Nation’s Production and IncomeUnemployment and InflationPART 3: THE ECONOMY IN THE LONG RUN The Economy at Full EmploymentWhy Do Economies Grow?PART 4: ECONOMIC FLUCTUATIONS AND FISCAL POLICY Aggregate Demand and Aggregate SupplyFiscal PolicyThe Income-Expenditure ModelInvestment and Financial MarketsPART 5: MONEY, BANKING, AND MONETARY POLICY Money and the Banking SystemThe Federal Reserve and Monetary PolicyPART 6: INFLATION, UNEMPLOYMENT, AND ECONOMIC POLICY Modern Macroeconomics: From the Short Run to the Long RunThe Dynamics of Inflation and UnemploymentMacroeconomic Policy DebatesPART 7: THE INTERNATIONAL ECONOMY International Trade and Public PolicyThe World of International FinancePART 8: A CLOSER LOOK AT DEMAND AND SUPPLY Elasticity: A Measure of ResponsivenessMarket Efficiency and Government InterventionConsumer Choice: Utility Theory and Insights from Behavioral EconomicsPART 9: MARKET STRUCTURES AND PRICING Production Technology and CostPerfect CompetitionMonopoly and Price DiscriminationMarket Entry and Monopolistic CompetitionOligopoly and Strategic BehaviorControlling Market Power: Antitrust and RegulationPART 10: EXTERNALITIES AND INFORMATION Imperfect Information: Adverse Selection and Moral HazardPublic Goods and Public ChoiceExternal Costs and Environmental PolicyPART 11: THE LABOR MARKET AND INCOME DISTRIBUTION The Labor Market and the Distribution of Income