The Economics of Just About Everything

by Andrew Leigh

Did you know that another 10 cm of height boosts your income by thousands of dollars per year? Or that a boy born in January is nearly twice as likely to play first grade rugby league as a boy born in December? Or that natural disasters attract more foreign aid if they happen on a slow news day? And that a perfectly clean desk can be as inefficient as a messy one?

Drawing on examples and data from across Australia, Andrew Leigh shows how economics can be used to illuminate what happens on the sporting field, in the stockmarket, and at work. Economics has things to say about AC/DC and Arthur Boyd, dating and dieting, Grange and Geelong, murder and poverty. Incentives matter, often in surprising ways, and seemingly simple everyday activities can have unexpected outcomes. Insights from behavioural economics can also help us make better decisions.

If you like fresh facts and provocative ideas, this is great train and weekend reading. You'll soon see the world and the people around you in a new light.

'Essential reading for the 21st century' - Karl Kruszelnicki

'Economics isn't the only thing, but Andrew Leigh reminds us that it can explain almost everything.' - George Megalogenis

'What do you get when you cross a politician with an economist? A captivating, charming, and nicely-written book. Who knew?' - Annabel Crabb

Andrew Leigh is the federal member for Fraser, ACT. He has a PhD from Harvard, was a Professor of Economics at the Australian National University, appears regularly in the media, and is author of several books, including Battlers and Billionaires.

Genres: Nonfiction, Economics, Business, Australia

256 pages, Paperback

First published August 1, 2014

About the author

Andrew Leigh is a member of the Australian Parliament. He holds a PhD from Harvard University, and is a fellow of the Academy of Social Sciences in Australia. Before being elected in 2010, he was a professor of economics at the Australian National University. His books include The Shortest History of Economics, The Luck of Politics and Randomistas.

Reviews

[Meadow · Rating 3 out of 5]

The biggest take away from this book is that I shouldn't keep reading books I don't enjoy. I like to finish what I start but if I quit then I have more time to read books that are great. Economics, FTW!

[Harry · Rating 1 out of 5]

A thoroughly disappointing "economics isn't just for economists" text in the vein of Joseph Heath's vastly superior Economics Without Illusions. Andrew Leigh lays out some basics of "economics thinking"—ideas like cost benefit analyses—and how they can be applied to a range of problems that have nothing to do with money. Unfortunately the insights he mines on this well-worn journey down non-fiction book tropes are less than astonishing. About the only valuable takeaway in Leigh's book is one he wisely saves for the final chapter—that people are biased toward continuing endeavours they've already begun, and vastly too resistant to putting down books they know aren't worth the time.

[Mark · Rating 1 out of 5]

I gave up halfway through this one, and that's more than it deserved.

Very early in the book he points out that correlation does not imply causation. It's a massive pet peeve of mine, because statistics seem to be used to draw wild conclusions more often than not these days. As long as you cite some numbers you can make any claim you like as a fact. So when he proceeds to make 1+1=7 on just about every page thereafter I wanted to rip it up.

And to add insult to injury he goes off at tangents, jumps around from one thing to another, and leaves points unfinished.
Oh, and by the way, economist and a statistician are two different professions. Don't let this book fool you.

[Ambrose Leung · Rating 4 out of 5]

Interesting economic applications that make perfect sense! An excellent book for anyone who wants to know economics applied to everyday life. Highly recommended.

[Nigel Shaw · Rating 2 out of 5]

Interesting in that it has Australian examples but otherwise inferior to most books on behavioural economics.

[Andrew Grenfell · Rating 4 out of 5]

This is a solid read and is particularly interesting for those looking for a Freakonomics-style treatment of Australian issues, such as the effect of gun control laws post the Port Arthur massacre. It is clear from the author's liberal inclusion of his own work that he has really rolled up his sleeves with this material, and it is communicated lightly and engagingly, without condescending to the reader. The extensive footnotes back up the material in the main text. There's plenty to think about here, and I found the chapter contrasting the "conceptual"-style artists vs "experimental"-style artists to be particularly thought-provoking.

[A.J. McMahon · Rating 2 out of 5]

It's OK. Not nearly as interesting as freakonomics.
I think the translation of academic analysis to everyday analysis was quite lacking
It seemed more academic than interesting for the everyday person.
Instead of feeling OH WOW! it was more like oh ok.
Also the analysis was quite small in the first place of the everyday situations. It was as of they didn't want to go the full jump towards exciting results and merely kept their discussions towards the safe, precise language they had in academics before cutting their analysis short.
In the end, I let my borrowing time expire because I feel there's more.interestinf books to be read out there.

[Jeffrey Carrick · Rating 4 out of 5]

This is the Australian version of Freakonomics:
• It is written in such plain English that it is very easy to digest.
• Andrew Leigh offers a smattering of economic ideas which, to anyone with more than an entry-level understanding of economics, will be familiar.
• Why did I read it then? The Australian-specific examples make it much more engaging and relatable (I’m Australian) than, say, Nudge by Thaler.
• The weakest idea in the book is the claim that incrementalism and conceptualism are mutually exclusive, and that people can be neatly categorised into one of these two groups.

[DanSk · Rating 5 out of 5]

I loved this read!
As someone with an interest, but no training, in economics this has given me such enthusiasm to keep pursuing this as a topic area.
Well written, light hearted, and well-researched, I recommend this wholeheartedly.

[Fabio · Rating 3 out of 5]

A few good concepts but felt dragging at times.

[Heath Tessmann · Rating 1 out of 5]

I dislike not finishing books, but I dislike myself more for wasting my time finishing this.

[Belle · Rating 4 out of 5]

3.5 rounded up. Lots of interesting topics and facts, but I would have liked even more detail about some things. It's easy to read but dense with facts so I'll probably reread it sometime.

[Ellen · Rating 4 out of 5]

Economic facts made fun, with an antipodean element to everything that's analysed.

[Alison Bell · Rating 1 out of 5]

Did not grab my attention - was looking forward to this but it was quite dull and in the end I skim read several chapters before throwing the towel in. Life’s too short………

[Matthew · Rating 2 out of 5]

Freakonomics but worse.

[Victor · Rating 3 out of 5]

"How to apply economics to everyday life" would have been a more suitable title for this book. Plenty of evidences and recurring theme to drive a few simple points. A little too long winded for my liking, but may be suitable for other readers.

[Toby · Rating 3 out of 5]

Reasonably interesting.

[Pete · Rating 4 out of 5]

The Economics of Just About Everything (2014) by Andrew Leigh is another excellent book from the ALP MP and former academic economist. The book is a popularisation of economic ideas.

First the book looks at dating and the 'first optimal stopping problem'. The Leigh examines fitness through the lens of behavioural economics. Then the book looks at sport statistics, career cycles crime, poverty and forecasting. Finally there is a summary of how to use economics in your own life.

The book is calm, measured and references a wealth of other studies and books. Leigh also nicely references people who don't agree with him such as a number of more pro-market economists. He also touches on one of his debates with Peter Brent, that of the efficacy of markets for prediction. It should be said that the book is also pleasantly short.

It's really an excellent book that makes you think that Australia really does have some excellent politicians. Few parliaments in the world can boast someone who writes popular books on the subject that they know best with such skill.

[Elizabeth · Rating 5 out of 5]

Entertaining read on economics. The only issue: Australian examples I don't understand i.e. Aussie football. Other than that, it was a great introduction to the economics of just about everything without it going over board or using too much economic jargon. A definite recommend.

[Alex · Rating 4 out of 5]

Interesting book that applies economics to a number of different areas, including dating and sport. The references in this book are Australian, so it can be sometimes hard to follow as a non-Aussie. Overall the book was enjoyable.

[Marcel · Rating 3 out of 5]

I liked the fact that the author wrote about Australian identities, sports and situations. However, I felt ripped off when I realised a quarter of the book is references etc.

[sean fenemore · Rating 5 out of 5]

thought provoking

an excellent erudite introduction to current economics thinking told in an easy to read style by an obviously widely and well read author

[Michelle · Rating 3 out of 5]

Basically Freakonomics, but Australian, and with more attempts to change beliefs regarding public policy.