Which books should you read for your economics personal statement?
After reading this post you will have some ideas for books to read, depending on your specific interests.
There are books for different areas of economics, including game theory, public economics, mathematics in economics, development and more.
First, for a complete guide to economics personal statements, including other supercurricular activities and how to write and structure your statement, click the blue button (paid resource):
Books by category
General
Economics Rules by Rodrik
- A good introduction about the uses and limits of economic models.
- Covers several different models and settings from the 2008 financial crisis to second best theory.
The Economist’s View of the World by Rhoads
- Another good introduction to economic thinking, this time about some of the ways in which economists think.
- This includes opportunity costs, incentives, marginal economics, market failure and government intervention.
Game theory
Thinking Strategically/The Art of Strategy by Dixit and Nalebuff
- How you can apply game theory to lots of different settings, such as politics, sports and business.
- Examples of questions covered: When should voters vote for an enemy? Why might “burning bridges” be an effective strategy? How can it pay off to be unpredictable? Game theory attempts to answer these questions and more.
- My favourite chapter of Thinking Strategically is the chapter on “Brinkmanship”. By taking an enemy “to the brink”, in other words forcing the enemy to accept greater and greater risks on their current path, you may encourage your enemy towards a more acceptable, less risky outcome. This is a good starting point in explaining how nuclear war evolves and maybe, how we can reduce the likelihood of such a war.
Co-opetition by Brandenburger and Nalebuff
- How game theory can be applied in a business setting. Bringing together competition and cooperation.
- Particularly suited to those with interests in business economics and case studies of different businesses.
- A highlight for me is the “tactics” chapter of the book. What do job interview processes, peacocks and book publishers have in common? This chapter is about the importance of information or a lack of information. When might it be beneficial to obscure information? Information is a key consideration in game theory and there are important takeaways for business behaviour and the design of compensation schemes or interview processes, for example.
Mathematics in economics
Mastering Metrics by Angrist and Pischke
- An introduction to key econometrics techniques, such as the idea of regression.
- Natural experiment methods, such as difference-in-difference methods, instrumental variables and regression discontinuity design. This is the basis for a lot of undergraduate econometrics.
The Drunkard’s Walk by Mlodinow
- Mostly about statistics and probability (not about economics).
- Learning about probability will be key for economics, for example for discussing stock price fluctuations or econometrics.
Development economics
Banker to the Poor: Micro-lending and the Battle Against World Poverty by Yunus
- Features the roots of the idea of microcredit – giving small loans out to those who cannot normally access funds from traditional banks.
- Yunus is the founder of Grameen bank, one of the most well known examples of microcredit in action.
- I would also recommend supplementing this with reading about the evidence of the effects of microcredit. For example papers by Duflo and Banerjee on the effects of microcredit.
Development as Freedom by Sen
- A case for defining development in terms of freedom and that development is not just about increasing incomes.
Economic history
The Ascent of Money by Ferguson
- Origins of money, banking, financial bubbles and panics.
Why Nations Fail by Acemoglu and Robinson
- A historical examination of why some nations are rich and others are poor.
- Focuses on the importance of “inclusive institutions” (such as enforcement of property rights) as opposed to “extractive institutions”.
- I also recommend looking into Acemoglu and Robinson’s (2000) paper on institutions as well as academic criticisms of their conclusions from other writers (for example by McArthur and Sachs).
History of economic thought
The Worldly Philosophers by Heilbroner:
- Covers several key economists in history, from Adam Smith, Malthus and Ricardo to Keynes and Schumpeter.
Macroeconomics
Austerity by Alesina, Favero and Giavazzi:
- Discusses the effects of fiscal austerity (reducing the size of the government budget deficit relative to GDP) and when this might be an effective policy.
- A good introduction to thinking and economic modelling in macroeconomics.
The Subprime Solution by Shiller
- Discusses causes of and solutions to global financial crises. Focusses on the importance of behavioural aspects of economics and finance.
Behavioural economics
Misbehaving by Thaler
- Covers key ideas in and the history of behavioural economics.
Inequality
The Price of Inequality by Stiglitz
- Good discussion of the dangers of inequality, including how it affects living standards, politics and the economy, and what can be done about it.
Environmental economics and public economics
Growth for Good by Terzi:
- How economic growth can mitigate, rather than exacerbate, the impacts of climate change.
Fragile Futures by Tanzi:
- How economists and governments should deal with uncertain events, including pandemics, climate change and other disasters.
Other questions
Why put books in the personal statement?
First of all there are personal benefits derived from reading. You can understand new ideas which you can apply to the real world and achieve personal enjoyment from reading.
For the purposes of personal statements, reading can act as a signal that you study beyond the standard curriculum. So you would be a motivated student at university.
How should I use books in a personal statement?
It is not a good idea just to name-drop the book, without any further discussion. How can the person reading your statement tell if you have actually read it?
The best way to discuss a book is to mention your own opinion of or takeaway from the book. Do you agree with the book? Did you find anything particularly surprising or interesting? Does the book help explain other phenomena you have observed, or link to something else?
So, when reading a book, I highly recommend making some notes on key ideas or points from the book and your own thoughts. You can then return to these points in the future or come back to them when writing your statement.
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