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Economics Rules: The Rights and Wrongs of the Dismal Science, by Dani Rodrik
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“A hugely valuable contribution. . . . In setting out a defence of the best in economics, Rodrik has also provided a goal for the discipline as a whole.” ―Martin Sandbu, Financial Times
In the wake of the financial crisis and the Great Recession, economics seems anything but a science. In this sharp, masterfully argued book, Dani Rodrik, a leading critic from within, takes a close look at economics to examine when it falls short and when it works, to give a surprisingly upbeat account of the discipline.
Drawing on the history of the field and his deep experience as a practitioner, Rodrik argues that economics can be a powerful tool that improves the world―but only when economists abandon universal theories and focus on getting the context right. Economics Rules argues that the discipline's much-derided mathematical models are its true strength. Models are the tools that make economics a science.
Too often, however, economists mistake a model for the model that applies everywhere and at all times. In six chapters that trace his discipline from Adam Smith to present-day work on globalization, Rodrik shows how diverse situations call for different models. Each model tells a partial story about how the world works. These stories offer wide-ranging, and sometimes contradictory, lessons―just as children’s fables offer diverse morals.
Whether the question concerns the rise of global inequality, the consequences of free trade, or the value of deficit spending, Rodrik explains how using the right models can deliver valuable new insights about social reality and public policy. Beyond the science, economics requires the craft to apply suitable models to the context.
The 2008 collapse of Lehman Brothers challenged many economists' deepest assumptions about free markets. Rodrik reveals that economists' model toolkit is much richer than these free-market models. With pragmatic model selection, economists can develop successful antipoverty programs in Mexico, growth strategies in Africa, and intelligent remedies for domestic inequality.
At once a forceful critique and defense of the discipline, Economics Rules charts a path toward a more humble but more effective science.
- Sales Rank: #54150 in Books
- Published on: 2016-10-11
- Released on: 2016-10-11
- Original language: English
- Number of items: 1
- Dimensions: 8.30" h x .70" w x 5.50" l, .0 pounds
- Binding: Paperback
- 272 pages
Review
“Full of good insights. . . . If you’re at all interested in economics you’ll want to read it.” (Clive Crook - BloombergView)
“Rodrik’s plea is for economics to be practiced with a bit more humility both by those who extol free markets and those who would tame them.” (Steven Pearlstein - Washington Post)
“The best economists make the best methodologists, and Dani Rodrik is both. His Economics Rules is the single best source for explaining the strengths and weaknesses of economics to an outside audience.” (Tyler Cowen, George Mason University, author of The Great Stagnation)
“In Economics Rules, enjoyment enhances learning, with lessons for economists and non-economists alike―indeed, ten commandments for each. The book is a page-turner with every page carrying an important and memorable take-away.” (Margaret Levi, director, Center for Advanced Study in the Behavioral Sciences, Stanford University)
About the Author
Dani Rodrik, a prize-winning economist, is the Ford Foundation Professor of International Political Economy at Harvard's John F. Kennedy School of Government. He is the author of The Globalization Paradox�and�Economics Rules.
Most helpful customer reviews
10 of 10 people found the following review helpful.
Must read explanation of economics
By Peter B Sperry
Dani Rodrik explains economists, their methodologies, biases, strengths, and weaknesses for non economist intellectuals. The book read like an extended opening statement at an Ivy League faculty dinner debate. The defensive attitude is impossible to miss but does not detract from the overall quality of the arguments. It would be fascinating to read a rebuttal by an equally talented academic from a competing discipline. It would be equally enlightening to watch Professor Rodrik arguing for the negative team in an Oxford style debate on the question "Resolved, economists are so full of it their eyes are brown." He just might win over the audience. At the very least he would make them think. I am curious who he would recommend as his opponent in that debate.
5 of 5 people found the following review helpful.
Very thoughtful summary of recent progresses in economics
By mcasta
I teach economics and yet learnt a lot. Rodrik is an outstanding writer and this book is better than many of his other ones. I'll use it in my courses, because it points at how to use the toolkits that we have in store. We do this constantly, without realizing. Here, Rodrik puts the process in plain light and helps us id and systematize it.
0 of 0 people found the following review helpful.
Can economists be counted on?
By Koo Tat Kee
This is a personal reflection of an economist on his profession. Rodrik wants to answer the question 'In what sense is economics a science?' In doing so, he criticizes some economists that 'are not always good about drawing the links between their models and the world.' (p.171) He ascribes their failings to 'the guild mentality renders the profession insular and immune to outside criticism.' (P.171 - 72) Nevertheless, he states clear his own views on economic models, what they are and what they can and cannot do with a lot of examples. After all, models make economics a science. Accordingly, progress in economics is advanced not by discarding old models but by collecting more newer ones, all useful in some context-specific settings. One important caveat, economics as a social science is not to be confused with physical science.
I appreciate Rodrik's undogmatic and eclectic approach to doing economics. Also, I believe that is the right attitude to knowledge-seeking.
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