Better Living through Economics

by John J. Siegfried

Better Living Through Economics consists of twelve case studies that demonstrate how economic research has improved economic and social conditions over the past half century by influencing public policy decisions.

Economists were obviously instrumental in revising the consumer price index and in devising auctions for allocating spectrum rights to cell phone providers in the 1990s. But perhaps more surprisingly, economists built the foundation for eliminating the military draft in favor of an all-volunteer army in 1973, for passing the Earned Income Tax Credit in 1975, for deregulating airlines in 1978, for adopting the welfare-to-work reforms during the Clinton administration, and for implementing the Pension Reform Act of 2006 that allowed employers to automatically enroll employees in a 401(k). Other important policy changes resulting from economists’ research include a new approach to monetary policy that resulted in moderated economic fluctuations (at least until 2008!), the reduction of trade impediments that allows countries to better exploit their natural advantages, a revision of antitrust policy to focus on those market characteristics that affect competition, an improved method of placing new physicians in hospital residencies that is more likely to keep married couples in the same city, and the adoption of tradable emissions rights which has improved our environment at minimum cost.

Genres: Economics

324 pages, Hardcover

First published January 1, 2010

About the author

John J. Siegfried is a Professor of Economics at Vanderbilt University, and is Secretary of the American Economics Association.

Reviews

[Allen Sirolly · Rating 4 out of 5]

This is a really good anthology of essays highlighting some of economics’ contributions to improving public welfare. I agree with the book’s premise that economic policy innovations are less visible to the public than technological ones, and yet have outsize impact relative to the amount of funding allocated to research (which comes mostly from public rather than private sources). Great reading especially for educated non-economists who will walk away with a more expansive understanding of what economics is all about (hint: it's about much more than GDP, inflation, and the stock market). The writing is a bit academic---truer for some essays than for others---but I don’t think this should deter prospective readers. My favorite chapters were the ones about the design of the FCC spectrum auctions ("The Greatest Auction in History") and the application of deferred-acceptance algorithms to medical residency matching and school choice.

[Carin]

my Dad edited this book! Cool!