UrbanEconomics:ReadingforLife

StephenMalpezzi

TheSpring2012Draft:May10,2012CommentsAppreciated

TheJamesA.GraaskampCenterforRealEstateWisconsinSchoolofBusiness

975UniversityAvenueMadison,Wisconsin53706‐1323

(202)262‐6007smalpezzi@bus.wisc.edu

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StephenMalpezziisLorinandMarjorieTiefenthalerProfessorwiththeJamesA.GraaskampCenterforRealEstateintheWisconsinSchoolofBusiness.HecurrentlyservesasChairoftheDepartmentofRealEstateandUrbanLandEconomics,andisanassociatememberoftheDepartmentofUrbanandRegionalPlanningoftheUniversityofWisconsin‐Madison.Ifirstdraftedasimpleversionofthisreadinglistabout20yearsago.Everyyear,IaddmorereferencesthanIdelete,soit’sgrownbyapageortwoeachyear.Irevisethisteachingnoteeveryfewyears,socommentsandcriticismsareparticularlywelcome.ThankstoFrançoisOrtalo‐Magné,RichardGreen,MorrisDavis,DavidShulman,BarryPerkel,WernerDeBondt,andmanystudentsinRealEstate420andRealEstate720andotherclasses,forcommentsanddiscussion.

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The2012DynamicDozen!Sorry,Icouldn’tdoaTopTen.Hadtobeatleastadozen.Thenitturnedintoabaker’sdozen.Heretheyareinreversealphabeticalorder.(Why?SoIhadareasontoputourblogas#1!)13.Anderson,MaxandPeterEscher.TheMBAOath:SettingaHigherStandardforBusinessLeaders.PenguinBooks,2010.PerhapsIwasinspiredtochoosethisonebecauseasIwrite,thenewsofthedayincludesHungary’spresidentPalSchmittresigningbecauseheapparentlyplagiarizedlargesectionsofhisPhDdissertation;YahooCEOScottThompsonhasjuststeppeddownafteronlyfourmonthsonthejobbecausehemisrepresentedhisacademiccredentialsonhisresume;Wal‐Mart’sinhotwateroverpossibleviolationsoftheForeignCorruptPracticesActinobtainingrealestatepermissionsinMexico(andanensuingpossiblecover‐up);andthenthere’stheplethoraofethicalissuesconnectedtotheGreatFinancialCrisis,before,duringandafter.AndersonandEscherareamongtheleadersofamovementtohaveMBAstudentsadoptasortofHippocraticOathforbusiness.Youmightfindtheoathideaitselfspeakstoyou,ornot;buteitherwaythislittlebook,writtenbyMBAstudents,framessomeverytimelyissues,andprovidesausefulguidetoadditionalreadingandreflection.12.Brooks,David.TheSocialAnimal.RandomHouse,2011.Brooksisbestknownasaconservativepoliticalcommentator,butisalsoanintellectualomnivore.Hisincreasinginterestinwhatmodernpsychologycanteachusabouteconomicandlifedecisionsparallelsmyown.InanapparenthomagetoRousseau’sEmile,hefollowsthelifepathsoftwofictionalcharacters,HaroldandErica,toillustrate.Whetheryoufindthisparticulardeviceeffectiveordistracting(orboth?),it’safluidintroduction.(SeealsoKahneman’sbook,below). 11.Chinn,MenzieD.andJeffreyA.Frieden.LostDecades:TheMakingofAmerica'sDebtCrisisandtheLongRecovery,WWNorton&CoInc.,2011.Debt??We’reindebt???Whoknew?Well,weallknowit,butwhyhavewerunupsuchadebtin(relativetoWorldWars)peacetime?Here’sascholarlybutwell‐writtenoverviewoftheproblem,itssources(oftenmisunderstood!)andsomesolutions. 10.Cowen,Tyler.TheGreatStagnation:HowAmericaAteAlltheLow‐HangingFruitofModernHistory,GotSick,andWill(Eventually)GetBetter.Amazon,2011.Aninterestingshortmonographontheeconomyanditsfuture.Alsoofinterest,anearlyexampleofabookpublishedelectronically(thoughnowafteritssuccess,it’salsoavailableinapaperversion). 9.Eichengreen,BarryJ.ExorbitantPrivilege:TheRiseandFalloftheDollarandtheFutureoftheInternationalMonetarySystem.OxfordUniversityPress,2011.TheU.S.hasanumberofstrengths;oneofthoseisthatthedollarhappenstobetheworld’sreservecurrency.Willitbesoindefinitely?Irememberthiswasahotissueduringmystudentdaysinthe

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70s.It’sback.Eichengreenisperhapsourleadingscholarofinternationalmonetaryhistory.8.French,K.R.,M.N.Baily,etal.TheSquamLakeReport:FixingtheFinancialSystem.PrincetonUniversityPress,2010.Giveslietothecanardthateconomistscanneveragreeonanything.Fifteentopfinancialscholars,ofvaryingpoliticalandacademicbackgrounds,providearemarkablysharpandconcisesetofrecommendationsforfixingourfinancialsystem. 7.Glaeser,Edward.TriumphoftheCity:HowOurGreatestInventionMakesUsRicher,Smarter,Greener,Healthier,andHappier.Penguin,2011.Afineoverviewoftheplaceofcitiesintheeconomyandsociety,well‐writtenbyHarvard’stopurbaneconomist.Afewglitches–e.g.hisdataondensitiesinsomedevelopingcountrycitiesisoffthemark–butIthinkhegetsallthebigstuffright.Andit’samuchbetterreadthanyourtypicalurbaneconomicstextbook.6.Haskins,RonandIsabelSawhill.CreatinganOpportunitySociety.Washington,D.C.,BrookingsInstitution,2009.EveryoneknowsthatincomeinequalityhasbeenrisingintheU.S.,butuntilIreadtheliteraturesurveyedandthedatapresentedinthisbook,Iwasunawarejusthowmuchourvauntedindividualeconomicmobilityhaderoded.BysomemeaningfulmeasurestheU.S.isnowlessmobilethanmanyEuropeancountries(somethingthatrarelymakesthenews).HaskinsandSawhillgiveacarefulreadingoftheevidence,andsomeverysensibleprescriptionstohelptheU.S.getitsmobilitymojoback. 5.Kahneman,Daniel.Thinking,FastandSlow.Farrar,StrausandGiroux,2011.Modelsofrationalchoicearethebreadandbutterofeconomists,myselfincluded.ButnotevenIwalkdownthesupermarketaislepluggingeverythingintomypersonaltranslogutilityfunction.PsychologistKahnemanwonaNobelPrizeforhisworkbringingpsychologyintothestudyofeconomics(“behavioraleconomics”).Thisisaveryreadableintroductiontohowthebraingoesbackandforthbetweenintuitivethinking(“System1”or“fastthinking”)andmoreanalytic,rationalthinking(“System2,”“slowthinking”).Weneedboth.ThebookMalcolmGladwellprobablymeanttowritewhenhewroteBlink.4.Malpezzi,Stephen.APrimeronRealEstateandtheAggregateEconomy:KnowYourMacroIndicators.JamesA.GraaskampCenterforRealEstate.2011.OK,alittleself‐promotionhere.Andit’samonographavailablefreeonmywebsitehttp://smalpezzi.marginalq.com/ratherthanarealbook.ButIthinkit’saveryhandyandpracticalintroductiontotrackingtheU.S.economy’sbasicmacrodata. 3.Mann,ThomasE.andNormanJ.Ornstein.It'sEvenWorsethanItLooks:HowtheAmericanConstitutionalSystemCollidedwiththeNewPoliticsofExtremism.BasicBooks,2012.You’vefiguredoutbynowthatsolvingourdeficitproblems,financialcrises,andmanyotherissuesarenotgoingsowell,morebecauseofpoliticsthanbecausewedon’tknowwhattodo.MannandOrnsteinhaverevisedandextendedtheir2008bookThe

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BrokenBranchtodocumenthowwearrivedatthispoint.Especiallycontroversialbecause,whilegivingplentyof“credit”totheDemocrats,theyclaimthattheRepublicansaremuchmoreresponsibleforthecurrentenvironment;andthisfromOrnstein,awell‐knownconservativescholarattheAmericanEnterpriseInstitute.(Otherrecentbooks,includingTomCoburn’sDebtBomb,spreadtheblamearoundmoreevenly).WhetherintheendyoushareMannandOrnstein’sviewsornot,you’lllearnfromthedetaileddiscussionofthedetailsbehindourpoliticalimpasses.Agoodsifting‐and‐winnowingcandidate.2.U.S.FinancialCrisisInquiryCommission.TheFinancialCrisisInquiryReport:FinalReportoftheNationalCommissionontheCausesoftheFinancialandEconomicCrisisintheUnitedStates,U.S.GovernmentPrintingOffice,2011.Threereportsinone–themajorityreportandtwominorityreports.Wellwritten,lotsofdetails,and–free!Atleastthepdfversion,availableat:http://www.gpo.gov/fdsys/pkg/GPO‐FCIC/pdf/GPO‐FCIC.pdf1.http://wisconsinviewpoint.blogspot.com/Readit.Knowit.Liveit.

The2010DynamicDozen!Incaseyoumissedthelastversion,from2010.Somefairlyrecent,someclassics,onarangeoftopics.YoucanfindbriefnotesontheseinthelongerversionofRFL,below.12.Ahamed,Liaquat.LordsofFinance:TheBankersWhoBroketheWorld.PenguinPress,2009.11.Akerlof,GeorgeA.andRobertJ.Shiller.AnimalSpirits:HowHumanPsychologyDrivestheEconomy,andWhyItMattersforGlobalCapitalism.PrincetonUnversityPress,2009.10.Bartik,TimothyJ.WhoBenefitsfromStateandLocalEconomicDevelopmentPolicies?Kalamazoo:W.E.UpjohnInstituteforEmploymentResearch,1991.9.Cronon,William.Nature'sMetropolis:ChicagoandtheGreatWest.W.W.Norton,1991.8.Gomez‐Ibanez,JoseA.,WilliamB.TyeandCliffordWinston(eds.).EssaysinTransportationEconomicsandPolicy:AHandbookinHonorofJohnR.Meyer.Brookings,1999.7.Green,RichardandStephenMalpezzi,APrimeronU.S.HousingMarketsandPolicy.TheUrbanInstitutePressfortheAmericanRealEstateandUrbanEconomicsAssociation,2003.6.Hulme,Mike.WhyWeDisagreeAboutClimateChange:UnderstandingControversy,InactionandOpportunity.CambridgeUniversityPress,2009.

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5.Lewis,Michael.TheBigShort:InsidetheDoomsdayMachine.W.W.Norton,2010.4.Reinhardt,CarmenM.andKennethS.Rogoff.ThisTimeIsDifferent:APanoramicViewofEightCenturiesofFinancialCrises.PrincetonUniversityPress,2009.3.Slemrod,JoelandJonBakija.TaxingOurselves:ACitizen'sGuidetotheDebateoverTaxes.MITPress,2008.2.Tufte,EdwardR.TheVisualDisplayofQuantitativeInformation.Chesire,Connecticut:GraphicsPress,1983.1.Wessel,David.InFedWeTrust:BenBernanke'sWarontheGreatPanic.CrownBusiness,2009.

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Somebooksaretobetasted,otherstobeswallowed,andsomefewtobechewedanddigested:thatis,somebooksaretobereadonlyinparts,otherstoberead,butnotcuriously,andsomefewtobereadwholly,andwithdiligenceandattention.

SirFrancisBaconEnglishauthor,courtier,&philosopher(1561‐1626)IntroductionWanttotakealittletimeoutfromtweeting,unplugyouriPod,closeupFacebook,shutdownyourblog,and…readabook?Someofmypersonalfavorites,andreadingssuggestedbystudents,follow.1Manyareavailableinpaperback.A*meansespeciallyrecommended.Thesearemostlybooks,butIwillrecommendafewperiodicals,journalarticles,andevenblogs.Ifyouhaven'talreadyseenthem,mysyllabiforUrbanEconomicscourses(undergrad,RealEstate420;master'slevel,RealEstate720;and,forthegutsy,ourPh.D.readinglist)providesadditionalreferences,includingsomearticles.Amongurbantexts,O'Sullivan'sUrbanEconomics(thetextforRealEstate420)hassomeofthebestandmostcomprehensiveend‐of‐chapterbibliographies.Ofcoursejustbecauseabookislistedhere,evenifit'soneofmyspecialfavorites,doesn'timplyIagreewiththeauthor.Whetheryou,orI,agreewithanauthorornot,alwaysreadwithourclassmottoinmind.2AndIdon’tmeantobeantediluvian.Idolistanumberofwebsites,blogposts,etc.(ButIstillresistTwitter.FortunatelyIhavesomeforward‐thinkingcolleagueswhodon’t:http://twitter.com/#!/fortalomagne)Themotivationforthislistismyconvictionthattakingacourse,oradegree,inRealEstateandUrbanLandEconomicsatWisconsinisthebeginning,nottheend,ofyourrealestateeducation.Consideritonesmallcontributiontoyourprogramoflife‐longlearning.SeemyTheWisconsinPrograminRealEstateandUrbanLandEconomics:ACenturyofTraditionandInnovation,especiallypp.5‐7.3Iupdatethisseveraltimesayear.Ifyouuseit,checkbackwithmeinayearortwoatsmalpezzi@bus.wisc.eduandI’llgladlysendyouanupdatedversion.I’malwaysinterestedinwhatstudentsandalumsarereadingalongtheselinesaswell.

1HaveIreadeverybookonthelist?No.Ihavereadthegreatmajority,somemorethanonce,some“digested”(especiallyifyouseea*),some“tasted.”Afewareinthe“must‐read”pilesonmydesk(andfloor),oneortwoonmyKindle,thoughI’veseenenoughtobelievethemworthwhile.(Andyes,Ihavereadbooksthatarenotonthelist.Thelengthcomesfrombeinganoldperson,bornafterJohannesGutenbergbutbeforeSergeyBrinandthatZuckerbergperson).2ForgottentheClassMottoalready?Ormaybesomeone'spassedthisalongtoyouandyouhaven'ttakenurbaneconomicsfromme.OurClassMottoinurbaneconomicsisDon'tbeasap.WealsohaveaClassSlogan,andaClassMantra.Moreonthosebelow.3Availableathttp://smalpezzi.marginalq.com/century/

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TheElephantintheRoom:TheEconomicandFinancialCrisisAcharya,ViralV.andMatthewRichardsoneds.RestoringFinancialStability:HowtoRepairaFailedSystem.Wiley,2009.Editedvolumeofanumberofcontributions,earlyinthecrisis,byeconomistsmostlyaffiliatedwithNYU’sexcellentfinanceandeconomicsdepartments.*Ahamed,Liaquat.LordsofFinance:TheBankersWhoBroketheWorld.PenguinPress,2009.Thishistoryofthedevelopmentofcentralbankingspanningthefirsthalfofthe20thcentury,whencentralbankingandthemonetarysystemweknowemerged,wonaPulitzerprize.Dr.AhamedisapolymathwhousedtoworkattheWorldBank;weoverlappedtherethoughourpathsdidnotreallycross.AnyonewhohasreadWorldBankreportswillbestunnedtofindoutthathewritesbeautifully.Barth,JamesR.ed.TheRiseandFalloftheU.S.MortgageandCreditMarkets.Hoboken,NJ:JohnWiley,2009.Tonsofrelevantdataandcharts,empiricistslikemelovethisbook.Bernanke,BenjaminS.EssaysontheGreatDepression.PrincetonUniversityPress,2004.Likemanyofus,hewasslowtorealizetheseriousnessofthesituationearlyon,buthemovedupthelearningcurvefasterthanGreenspanevercouldhave,innosmallpartbecausehe’satruescholaroffinancialcrises.I’mgladwehadBernankeinthesaddlewhenthecrisishit.*Bookstaber,Richard.ADemonofOurOwnDesign:Markets,HedgeFundsandthePerilsofFinancialInnovation.Wiley,2007.Notethedate:thisbookpredatedtheworstofthecrisis.Bookstabershowshowriskmanagementwentwrong,thisfromsomeonewhoknowsthemodelsinsideandout,butunlikemanyquants,thoughthardandclearlyabouttheimplicationsoftheirshortcomings.Ciorciari,JohnD.andJohnB.Taylored.TheRoadAheadfortheFed.Stanford,CA:HooverInstitutionPress,2009.Arangeofshortreadablepieces.Fuchita,Yasuyuki,RichardJ.HerringandRobertE.Litan.PrudentLendingRestored:SecuritizationaftertheMortgageMeltdown.BrookingsInstitution,2009.We’renotgoingbacktoIAWLW.(“It’sAWonderfulLifeWorld.”)Wherearewegoing?GovernmentAccountabilityOffice,GAO08‐78R,InformationonRecentDefaultandForeclosureTrendsforHomeMortgagesandAssociatedEconomicandMarketDevelopment,sOctober16,2007.MostlyaPowerPointpresentation,bysomeoneIneedtotalktoaboutfonts.Butalotofgoodbackgroundinahurry,servedasabasisforsomeofmyownearlypresentationsonthecrisis.Gramlich,EdwardM.SubprimeMortgages:America'sLatestBoomandBust.UrbanInstitutePress,2007.ThelateNedGramlichwasaneconomistandaFedGovernorwhoraisedtheissueofsubprimewithGreenspanearlyon.Alandidn’tmuchlisten.Thisbooksummarizeshisviews.Ho,Karen.Liquidated:AnEthnographyofWallStreet.DukeUniversityPress,2009.ProfessorHoisananthropologist,who’sgotadifferenttakeonthisfrommostofthefolks(economists)Iread.Kindelberger,CharlesP.andRobertAliber.Manias,PanicsandCrashes:AHistoryofFinancialCrises.JohnWiley,2005.Aclassic,firstpublishedbyKindelbergerin1978,updatedbyAliber.

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*Lewis,Michael.TheBigShort:InsidetheDoomsdayMachine.W.W.Norton,2010.ThinkthemarketforMBSisefficient?Readthisbookandtellmewhatyourdefinitionofefficiencyis.Mera,KoichiandRenaud,Bertrand.Asia'sFinancialCrisisandtheRoleofRealEstate.MESharpe,2000.*Reinhardt,CarmenM.andKennethS.Rogoff.ThisTimeIsDifferent:APanoramicViewofEightCenturiesofFinancialCrises.PrincetonUniversityPress,2009.NotetheIRONYinthetitle.Thisisamasterfulworkofscholarship.Sorkin,AndrewRoss.TooBigtoFail.Viking,2009.Thesecond,andmorepopularoftworecentbookswithTBTFasatitle.Greatjournalisticdetailaboutthechronologyofthecrisis.Notveryanalytical,butagoodreadandanexcellentcompaniontotheotherbooksI’velistedonthistopic.Stern,GaryH.andFeldman,RonaldJ.TooBigtoFail:TheHazardsofBankBailouts.BrookingsInstitution,2004.Shorter,earlier,lesswellknown,substantivelyperhapsamoreimportantbookthanitsdoppelganger.Taylor,JohnB.GettingOffTrack:HowGovernmentActionsandInterventionsCaused,Prolonged,andWorsenedtheFinancialCrisis.Stanford,CA:HooverInstitutionPress,2009.Awellwrittenlookatthecrisisfromtheperspectiveofatopeconomistwho’snotsanguinethatmorepublicinterventionsaretheanswer.*Wessel,David.InFedWeTrust:BenBernanke'sWarontheGreatPanic.CrownBusiness,2009.Agreatpieceofinterpretativejournalism.Wolf,Martin.FixingGlobalFinance.JohnsHopkinsPress,2008.Countries,aswellasbanks,arenowmoreinterconnectedthanever.Special“Stimulus”Topic:siftingandwinnowingaboutmultipliers:Canstimuluswork?MorrisDavisandIdiscussedthequestionontheBigTenNetwork’sOfficeHours:4http://officehours.polisci.wisc.edu/episodes/season2/E3.phpandwhilewehavedifferentpriorsabouttheshortrunefficacyoftherecentstimulus,weagreedthateconomicshasn’tgivenusagoodanswertohowmuch,ifany,shortstimulusactuallycomesfromrunningabiggerbudgetdeficit.(Virtuallyalleconomistsagreethatthelongtermmultipliereffectsarezero.)See:RobertHallByHowMuchDoesGDPRiseiftheGovernmentBuysMoreOutput?BrookingsPapers

4PuttingapublicaffairsprogramontheBigTenNetworkisasurewaytomakesureanyonewhofindsitbymistake–“what,where’stheWisconsin‐PennStategame?”–willquicklymoveontoESPN.Fortunately,it’sonline.

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onEconomicActivity,2009.RobertBarrointerviewathttp://thebrowser.com/interviews/barroAlanBlinder,TheCaseAgainsttheCaseAgainstDiscretionaryFiscalPolicy.June2004.DouglasElmendorffandJasonFurman,If,When,How:APrimeronFiscalStimulus.BrookingsInstitution,2008.MenzieChinn’sblogonmultipliers:http://www.econbrowser.com/archives/2009/09/multipliers_rev.htmlValerieRamey,IdentifyingGovernmentSpendingShocks:It’sAllintheTiming.UC‐SanDiegoWorkingPaper,October2009.SpecialTopic:TheBudgetDeficitCongressionalBudgetOfficehttp://www.cbo.gov/TheOfficeofManagementandBudgethttp://www.whitehouse.gov/omb/budget/“RyanPlan”http://www.roadmap.republicans.budget.house.gov/Plan/BrookingsInstitutionhttp://www.brookings.edu/topics/federal‐budget.aspxUrbanInstitute‐BrookingsTaxPolicyCenterhttp://www.taxpolicycenter.org/Simpson‐Bowleshttp://www.fiscalcommission.gov/Dominici‐Rivlinhttp://bipartisanpolicy.org/projects/debt‐initiative/aboutGeneralEconomicsandFinanceAaron,HenryJ.andWilliamG.Gale.EconomicEffectsofFundamentalTaxReform.TheBrookingsInstitution,1996.IncludesacontributionbyProfessorGreenonthetaxationofhousing.Akerlof,GeorgeA.AnEconomicTheorist'sBookofTales.CambridgeUniversityPress,1984.Containsclassicssuchas"TheMarketforCherriesandtheMarketforLemons."DidyouknowanalyzingfruitcouldwinyouaNobelPrize?Toughgoinginparts,butfun.

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*Akerlof,GeorgeA.andRobertJ.Shiller.AnimalSpirits:HowHumanPsychologyDrivestheEconomy,andWhyItMattersforGlobalCapitalism.PrincetonUnversityPress,2009.Adecadeagoviewslikethiswerelaughedoffbymanyeconomistsandfinanceprofessors.Timetodosomeserioussiftingandwinnowing.Bogle,JohnC.BogleonMutualFunds:NewPerspectivesfortheIntelligentInvestor.DellPublishing,1994.JohnBoglefoundedVanguard,awell‐knownsourceoflow‐cost,broadbasedmutualfunds.Boglemakesthecase(supportedbyahostofacademicresearch)onthegeneralsuperiorityoflow‐costindexfundsoveractivestock‐picking.Whenthinkingabouthowtoinvestyourownsavings,readBogle,aswellasDeBondtandThaler,Malkiel,Shiller,andSiegel,below.Bogle,JohnC.CommonSenseonMutualFunds:NewImperativesfortheIntelligentInvestor.Wiley,2000.Bogle’srecentoffering.(Ihaven’treadityetbutrecommenditbasedonhisearlierbook.)Brooks,David.BobosinParidise:TheNewUpperClassandHowTheyGotThere.SimonandSchuster,2001.AnentertaininglookatthoseGore‐texwearing,latte‐sipping,NPR‐listening(I’mguilty!)successorstothe“yuppies,”the“BourgeoisBohemians.”Buchholz,Todd.NewIdeasfromDeadEconomists.NewAmericanLibrary,1990.Entertainingreviewofsomeideasfromtheclassics.Caplow,Theodore,LouisHicksandBenJ.Wattenberg.TheFirstMeasuredCentury:AnIllustratedGuidetoTrendsinAmerica,1900‐2000.AmericanEnterpriseInstitutePress,2000.Thebigpicture,longview.Mymaincomplaint:theyshouldhavescaledmanyofthechartslogarithmically!(Who’sourfriend?)*CongressionalBudgetOffice,BudgetOptions.(AndmanyothertitlesbyCBO;seetheirexcellentwebsiteatwww.cbo.gov).Anamazingvalue:youcangetonCBO'smailinglistforfree.Well,actually,ifyoupaytaxes,you'vepaidforit.Checkitout.Cowen,Tyler.TheGreatStagnation:HowAmericaAteAlltheLow‐HangingFruitofModernHistory,GotSick,andWill(Eventually)GetBetter.E‐bookfromAmazon,2011.*Davis,MorrisA.MacroeconomicsforMbasandMastersofFinance.CambridgeUniversityPress,2009.Thisbookisterrific.EspeciallytheForeword.(Atleast,that’swhatItellMorris!)*Diamond,JaredM.Guns,GermsandSteel:TheFatesofHumanSocieties.W.W.Norton&Co.,1997.Speculative,butitholdstogether:howendowmentsofplantsandanimals,andgeography,influencedtherise(andfall)ofcivilizations.Fascinating.Dixit,AvinashK.andBarryJ.Nalebuff.ThinkingStrategically:TheCompetitiveEdgeinBusiness,PoliticsandEverydayLife.W.W.Norton,1991.Nontechnicaldiscussionofhowtoapplygametheorytorealworldsituations.Dixit,AvinashK.andRobertPindyck.InvestmentunderUncertainty.PrincetonUniversityPress,1994.Alittletechnical,butnotterribly:thebestintroductiontooptionsforthenon‐specialist.

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Economist,The.TheAbuseofEconomics:CommonEconomicFallacies.1996.Epstein,Gene.Econospinning:HowtoReadbetweentheLineswhentheMediaManipulatetheNumbers.Wiley,2006.I’mreadingnow–hasadefinitepointofview,butbroadlyseemsafinecontributionto“siftingandwinnowing.”Don’tbeasap.Johnston,DavidCay.PerfectlyLegal.Portfolio,2003.Ifyou’rerich,you’llpayalotoftaxes.Ifyou’rereallyrich,maybenot.Takeyourbloodpressuremedicationbeforereadingthisone.Levitt,StevenD.andStevenJ.Dubner.Freakonomics.WilliamMorrow,2005.Listedhere,thoughgrosslyoverrated.Levittisawellknowneconomist,andonemightsayanimaginativeone;Dubnerisajournalist.Ihaveahardtimewiththewritingstyle,especiallyDubner’shagiographyofLevitt.Thenagain,Ican’tstandtowatchSurvivororFearFactor(muchlessCNNorFoxNews).Levitt’sresearchonanumberoftheseissueshasbeenchallengedbyothereconomists,althoughIwillsaythisbookcanbethoughtprovoking.Ifyouwantarecentpopularbookoneconomics,therearemanybetteronesonthislist,e.g.Bucholz,Shiller,Taylor,Davis,Akerlof,Thaler…almosteveryotherbookinthislist,infact.Snap.Lowenstein,Roger.WhenGeniusFailed:TheRiseandFallofLong‐TermCapitalManagement.RandomHouse,2001.WinningaNobelprizeisnoguaranteeofbusinesssuccess.Lowenstein,Roger.OriginsoftheCrash:TheGreatBubbleandItsUndoing.NewYork:PenguinPress,2003.Nexttimesomeonetellsyoutobuybecauseofa“newparadigm”inpricing,takeadeepbreath,andreadthisbook.*Malkiel,BurtonG.ARandomWalkDownWallStreet.RevisedEdition,W.W.Norton,2007.Aclassicexpositionofthe(moreorless)efficientmarketshypothesis,someexceptionsandanomalies,andwhatitallmeansforinvestors.CompareandcontrastthisbookwithShiller’sRationalExuberance,andDeBondtandThaler.(EvenifU.S.stockmarketsarereasonablyefficient,arerealestatemarkets?Hmmm.)DeBondt,WernerF.M.andRichardThaler.AMean‐RevertingWalkDownWallStreet.JournalofEconomicPerspectives,3(1),Winter1989,pp.189‐202.OurownProfessorDeBondtisoneoftheleadersinso‐calledbehavioralfinance,suggestingtheholesintheefficientmarketshypothesisarelargerthanmanythink.Mandelbrot,BenoitandRichardL.Hudson.The(Mis)behaviorofMarkets:AFractalViewofRisk,Ruin,andReward.BasicBooks,2004.Alittletoughinpartscomparedtootherreadingsinthissection,butthoughtprovoking.McMillan,John.ReinventingtheBazaar:ANaturalHistoryofMarkets.W.W.Norton,2002.Areallyniceintroductiontothebasicsofhowmarketswork,intheoryandinpractice.Moss,DavidA.WhenAllElseFails:GovernmentastheUltimateRiskManager.HarvardUniversity,2004.Pejovich,Svetozar.TheEconomicsofPropertyRights:TowardsaTheoryofComparativeSystems.Kluwer,1990.Heavygoinginspots,butgoodsurvey.

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Plattner,Stuart(ed.).EconomicAnthropology.StanfordUniversityPress,1989.Posner,KennethA.StalkingtheBlackSwan:ResearchandDecisionMakinginaWorldofExtremeVolatility.ColumbiaUniversityPress,2010.Shiller,RobertJ.MacroMarkets:CreatingInstitutionsforManagingSociety'sLargestEconomicRisks.OxfordUniversityPress,1993.Interestingideasforhowweshould“complete”somefinancialmarkets,especiallyrelatedtohousing.*Shiller,RobertJ.IrrationalExuberance.SecondEdition,PrincetonUniversityPress,2005.Thefirstedition,publishedin2001,wasperfectlytimed,becausehisexcellentdiscussionofassetmarketbubbleshitthebookstoresjustastheNASDAQbubbleburst.Butthat’soldnews.Thesecondeditiondevotesalotofspacetothepossibilityofarealestatebubble.Verythoughtprovoking.*Shlaes,Amity.TheForgottenMan:ANewHistoryoftheGreatDepression.JonathanCape.2007.Idon’tagreewithallherconclusionsbutit’saveryreadablehistoryofthepoliticsandeconomicsoftheNewDeal,TVA,andotherDepression‐eraissues.*Slemrod,JoelandJonBakija.TaxingOurselves:ACitizen'sGuidetotheDebateoverTaxes.MITPress,2008.It’samazinghowmuchuninformednonsenseisoutthereaboutourtaxsystem,onbothsidesofthepoliticalspectrum.Getthefactshere.Taleb,Nassim.TheBlackSwan:TheImpactoftheHighlyImprobable.RandomHouse,2007.*Thaler,RichardH.TheWinner'sCurse:ParadoxesandAnomaliesofEconomicLife.PrincetonUniversityPress,1992.Thisbookshowshowrecenttheoreticaladvancesingametheoryhelpusunderstandrealworldissuesinbidding,etc.Ifyouthinkyou'llbebuyingorsellingrealestate–oranythingelse–inyourfuturecareer,readit.Thaler,RichardH.andCassR.Sunstein.Nudge:ImprovingDecisionsAboutHealth,WealthandHappiness.Penguin,2009.Wolf,Charles.MarketsorGovernments:ChoosingBetweenImperfectAlternatives.MITPress,1988.Young,H.Peyton.Equity:InTheoryandPractice.RussellSage,1994.Alotofpeople,includingsomeeconomists,thinkeconomistsfocusonefficiency,andhavenothingtosayaboutequityordistributionalissues.Notso.Readthisbook,andthenext(byZajac).Zajac,EdwardE.PoliticalEconomyofFairness.MITPress,1995.InternationalEconomics;Trade;GlobalizationBanerjee,A.V.andE.Duflo.PoorEconomics:ARadicalRethinkingoftheWaytoFightGlobalPoverty.PublicAffairs,2011.Notmuchmacrohere–canwemakeadentinourunderstandingofdevelopmentfromthebottomup?

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Bhagwati,JagdishN.FreeTradeToday.PrincetonUniversityPress,2002.Clearexplanationofwhyeconomistsbelievefreetradeisgenerallyanefficientandprogressivepolicy;andwhymultilateralagreementslikethosehammeredoutattheWTOaresuperiortobilateralagreementslikeNAFTA.Bhagwati,JagdishN.TheWindoftheHundredDays:HowWashingtonMismanagedGlobalization.MITPress,2000.Bhagwati’sviewsontradeingoodsandservicesreflecteconomists’consensus(seeabove);butthereislessconsensusonwhethercapitalflowsshouldbeunfettered.Bhagwatiarguescogentlyagainstcompletelyfreeflows,inthebackgroundoftheAsiaCrisis.Manyeconomists,myselfincluded,arebecomingconvincedbythelatestevidence.(WhatelsewouldagoodBayesiando?)Bhagwati,JagdishN.InDefenseofGlobalization.OxfordUniversityPress,2004.Bhalla,SurjitS.ImagineThere'sNoCountry:Poverty,InequalityandGrowthintheEraofGlobalization.Washington,D.C.:InstituteforInternationalEconomics,2002.Alittledensecomparedtomanyoftheothertitleslistedhere,butagoodintroductiontotheempiricsofgrowthanddistributionacrosscountries.Blustein,Paul.TheChastening:InsidetheCrisisthatRockedtheGlobalFinancialSystemandHumbledtheIMF.PublicAffairs,2001.GoodjournalisticaccountoftheIMF’sroleintheAsianCrisis.Hindsightis20/20,butfairlybalanced.Remember,thesefinancialissueshadspilloversforU.S.financialandrealestatemarketsaswell.*Burtless,Gary,RobertZ.Lawrence,RobertE.LitanandRobertShapiro.Globaphobia:ConfrontingFearsaboutOpenTrade.BrookingsInstitution,1998.Doheadlinesabout"globalization"keepyouupatnightworrying?Readthisbookandgettherealstory.OneofmyfavoritebooksevenbeforemystepsonreaditonenightandwonascholarshipthenextdaysponsoredbytheWorldAffairsCouncil.Cash‐on‐cashreturn:27778%.Dollar,David.AssessingAid:WhatWorks,WhatDoesn't,andWhy.OxfordUniversityPress,1998.Ifyouareinterestedinif/when/howforeignaidcanhelppoorcountries,whetherfromaltruism,orplainconcernforhowafewofyourtaxdollarsareused,thisbookishighlyrecommended.Economist,The.ThinkingAboutGlobalisation:PopularMythsandEconomicFacts.1997.Easterly,WilliamR.TheElusiveQuestforGrowth.MITPress,2001.Highlightstheroleincentives,goodgovernanceandthe“rulesofthegame”haveondevelopment.(Hint:thesematteralotmorethan$$ofaidperse.)Somehavemisinterpretedhiscommentsoneducation(educationcanimprovegrowthrates,butonlyifotherconditionsaremet).EasterlycanbemorepessimisticthanIaminsomerespects,butoverall,anexcellentintroductiontothetopic.Agood“siftingandwinnowing”assignmentistoreadoneortworecentbooksbyEasterlyinconjunctionwithoneortwobyJeffSachs.Friedman,ThomasL.TheWorldisFlat:ABriefHistoryoftheTwenty‐FirstCentury.Farar,StrausandGiroux,SecondEdition,2006.Ahugebestseller.Butmorethanalittleprecious;anddespiteoccasionallyhighlightingthewell‐knowngainsfromtrade,Friedmandemonstrateshehasn’treallyinternalizedwhatwe’velearnedfromRicardoandhissuccessors.Vastlyoverratedbymanyfellow

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pundits,oftenfrustratingtocarefulandinformedreaders,butstillitcontainssomeimportantinsights.Wellworthreading,butafteryou’veplowedthroughit,yourSiftingandWinnowingassignmentistoreadEdLeamer’sreviewat:http://www.uclaforecast.com/reviews/Leamer_FlatWorld_060221.pdfGoldin,I.,G.Cameron,etal.(2011).ExceptionalPeople:HowMigrationShapedOurWorldandWillDefineOurFuture,PrincetonUniversityPress.Krugman,PaulR.PopInternationalism.MIT,1996.SomeespeciallygoodessayspuncturingthemythspropagatedbyLesterThurowandthelike.PaulKrugmanisoneofthebesttheoreticaltradeeconomistsofourage;he'smadetremendouscontributionstotradetheory,andhisre‐discoveryofsomeurbanandregionaleconomicstopicshasbroadenedtheaudienceforlocationaleconomics.Healsowriteswell,andlikestotacklepublicpolicyissuesinessaysliketheonesinthisbook.He'ssurprisinglythin‐skinned,andhasapparentlybeenunabletogetoverthefactthattheClintonadministrationwouldratherlistentoalightweightlikeIraMagazinerthanhim,forheavens'sake,andthatG.W.Bushfailstoappreciatehisgeniusatall.He’ssotickedoffattheBushadministrationthathisNewYorkTimescolumnlostcredibilityamongmanyreaders,evenwhenhe’scorrect,whichisashame.Stillworthreadinghispre‐Bushadministrationstuffontrade;justbecausesomeonehas(sadly)becomeanideologuedoesn’tmeanhecan’thavesomethinginterestingtosay.Krugman,PaulR.andMauriceObstfeld.InternationalEconomics:TheoryandPolicy.ThirdEdition,HarperCollinsPublishers,1994.Bynowthere'sanothereditionout.Sure,it'satextbook,butanexcellentone.Landes,DavidS.TheWealthandPovertyofNations:WhySomeAreSoRichandSomeSoPoor.Norton,1998.Longrunviews,aswe’dexpectfromoneoftheleadinghistoriansofdevelopment.Legrain,Phillippe.OpenWorld:TheTruthaboutGlobalization.London:Abacus,2002.Goodjournalisticreviewandcritique.Maddison,Angus.TheWorldEconomy:AMillennialPerspective.Paris:OECD,2001.Olson,Mancur.TheRiseandDeclineofNations:EconomicGrowth,Stagflation,andSocialRigidities.YaleUniversityPress,1982.Prahalad,C.K.TheFortuneattheBottomofthePyramid:EradicatingPovertyThroughProfits.WhartonSchoolPublishing,2005.Alittleroughinparts–assembledfromabunchofMBAclassprojects,apparently,maybeIshouldlearnsomethinghere?–butaveryinterestingcentralthesis.Andit’struethatMcDonald’smakesalotmoremoneythanL’Etoile,andSamZellmakesseriousmoneyonmobilehomeparks–there’sprofittobemadeatthelowerendofthemarket.Canwetakethisessentialinsightfurther?Ifyouareinterested,emailmeformyPPTlectureonthistopic.Sachs,Jeffrey.TheEndofPoverty:EconomicPossibilitiesforOurTime.Penguin,2006.Anothersmarteconomistwho,nevertheless,isnotnearlysogreatashethinksheis.Inmyviewheputswaytoomuchemphasisonforeignaidasapositivecontributortoeconomicdevelopment(despitetonsofevidencethatdemolishthesimplisticviewsherepeatedlyputsforward).Butmalariaisahugedrainonmuchoftheworldandbednetsareagreatidea(andthereisnowsolidempiricalevidencethatgivingthemawayworks;I’vehadtochangemyviewsonthisone).Sachsoftendoes

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intellectualbattlewithBillEasterly(seeabove).WhilemyreadingoftheevidenceisclosertoEasterly’s,readthetwotogetherandseewhatyouthink.Whileyou’reatit,alsoreadPaulCollier’sTheBottomBillion(seethesectiononAfricaattheend).Spence,Michael.TheNextConvergence:TheFutureofEconomicGrowthinaMultispeedWorld.Farrar,StrausandGiroux,2011.Wolf,Martin.WhyGlobalizationWorks.Yale,2004.Mycurrentfavoritesummaryoftheprosandconsof“globalization.”Highlyrecommended.WorldBank'sannualWorldDevelopmentReportcomesouteveryyear,witha"topicoftheyear"aswellasthestandarddatabaseforcomparingeconomiesacrosscountries.Easytobuyinpaperback,ordownloadfreeinpdffromwww.worldbank.org.WorldBank,UrbanPolicyandEconomicDevelopment,1991.AconcisestatementoftheWorldBank'surbanpolicy,withagoodreviewofurbanissuesaroundtheglobe.SiftingandWinnowing.WhileIdon’tagreewitheverythingwrittenintheworksabove,mostlyIconsiderthemprettyreliable.Butweshouldmakeahabitofreadingbooksthatchallengeourownpriorbeliefs.ThenextfewrecommendationsareseriousworksthatIhavemajordisagreementswith;buttheyarebookstobereckonedwithandhaveprobablysharpenedmythinkingmorethanmost.Ifyouthinkthatgovernmentsand/orthe“internationaldevelopmentcommunity”isthebesthopeformankind,challengeyourselfwiththefollowing:Bauer,PeterT.DissentonDevelopment:StudiesandDebatesinDevelopmentEconomics.HarvardUniversityPress,1972.Lal,Deepak.ThePovertyof'DevelopmentEconomics'.HarvardUniversityPress,1985.Ifyouthinkthatthemagicofthemarketwillsolveallglobaleconomicproblems,perhapswithalittleboostfromgovernmentssettingpropertyrightsandgrowingM2atasteadyrate,checkout:Rodrik,Dani(ed.).InSearchofProsperity:AnalyticNarrativesonEconomicGrowth.PrincetonUniversityPress,2003.Stiglitz,JosephE.GlobalizationanditsDiscontents.NewYork:W.W.Norton,2002.RealEstateandUrbanDevelopmentAdler,Jerry.HighRise:How1,000MenandWomenWorkedAroundtheClockforFiveYearsandLost$200MillionBuildingaSkyscraper.NewYork:HarperCollinsPublishers,1993.AmericanSocietyofRealEstateCounselors.OfficeBuildings:Development,MarketingandLeasing.Chicago(date).

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Arnott,RichardandDanielMcMillened.ACompaniontoUrbanEconomics.Blackwell,2006.Bairoch,Paul.CitiesandEconomicDevelopment:FromtheDawnofHistorytothePresent.UniversityofChicagoPress,1988.Barth,JamesR.TheGreatSavingsandLoanDebacle.AmericanEnterpriseInstitutePress,1991.Bianco,Anthony.TheReichmanns:Family,Faith,FortuneandtheEmpireofOlympia&York.NewYork:RandomHouse,1996.Buckley,RobertM.HousingFinanceinDevelopingCountries.Oxford,1996.Burrows,EdwinG.andMikeWallace.Gotham:AHistoryofNewYorkCityto1898.OxfordUniversityPress,1998.*Cairncross,Frances.TheDeathofDistance.HarvardBusinessSchoolPress,1997.Elaborationofarequired720readingfromTheEconomist.Ithinkherconclusionsareprobablyoverstated,butinadecadeortwowe’llfindout.*Caro,Robert.ThePowerBroker:RobertMosesandtheFallofNewYork.NewYork:Knopf,1974.Oneoftheall‐timegreatbiographies.InfrastructureinvestmentisneverParetoOptimal!Chandler,TertiusandGeraldFox.3000YearsofUrbanGrowth.NewYork:AcademicPress,1974.Onlyfornumberfreakswithatasteforhistory,butifyouareone,you’llloveit.Clapp,JohnM.DynamicsofOfficeMarkets:EmpiricalFindingsandResearchIssues.TheUrbanInstitutePress,AmericanRealEstateandUrbanEconomicsAssociationMonographSeries,No.1,1993.Wanttoknowwhattheacademicliterature(uptoadecadeorsoago,anyway)tellsusaboutofficemarkets?Readthis.Cobb,Vicki.SkyscraperGoingUp!.NY:ThomasY.Crowell,1987.*Cronon,William.Nature'sMetropolis:ChicagoandtheGreatWest.W.W.Norton,1991.Amasterpieceofscholarshipandclearwriting.Learntheoriginoftheword"Chicago,"learnaboutLakeMendota'scontributiontothedevelopmentofChicagomeatpacking.CrononistheFrederickJacksonTurnerProfessorofHistoryhereatUW.DiPasquale,DeniseandWheaton,WilliamC.UrbanEconomicsandRealEstateMarkets.PrenticeHallEnglewoodCliffs,NJ,1995.Downs,Anthony.NewVisionsforaMetropolitanAmerica.TheBrookingsInstitution,1994.Areallynicereviewofissuesrelatedtourbanization,housing,sprawl.DownsisalittlemoreconcernedwithsprawlthanIam,buthe'soneofAmerica'smostthoughtfulobserversoftheurbanscene.Readhimeverychanceyouget.Ely,RichardT.GroundunderOurFeet:AnAutobiography.Macmillan,1938.

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Fabozzi,FrankJ.andFrancoModigliani.MortgagesandMortgageBackedSecuritiesMarkets.HarvardBusinessSchoolPress,1992.Ifyou'reinvolvedwithrealestatefinance,thisbelongsinyourlibrary.Foster,Peter.TowersofDebt:TheRiseandFalloftheReichmanns‐‐TheOlympia&YorkStory.Toronto:KeyPorterBooks,1993.Frieden,BernardJ.andLynneB.Sagalyn.Downtown,Inc.:HowAmericaRebuildsCities.MITPress,1989.*Garreau,J.TheNineNationsofNorthAmerica.NewYork:AvonBooks,1981.AfunandinsightfuldiscussionofregionalismintheU.S.,CanadaandMexico.*Garreau,Joel.EdgeCity:LifeontheNewFrontier.Doubleday,1991.Thisisanexcellentbookthatcoinedtheterm"edgecities."Lotsofinterestingideasonhowrealestatedevelopmentandlocationinteract.Garvin,Alexander.TheAmericanCity:WhatWorks,WhatDoesn't.NewYork:McGrawHill,1996.ThisbookisagreatreviewofalotofthehistoryofU.S.urbandevelopment,withalotofemphasisontheinteractionofpublicandprivatesectors.LotsofexamplesfromNewYork,butothersfromaroundthecountry.Sometimestheanalysisisalittlesuperficial,Garvin'scost‐benefitcouldbealittlesharper;butagoodreview.Geltner,DavidM.andNormanG.Miller.CommercialRealEstateAnalysisandInvestments.PrenticeHall,2001.Alittletougherthan,say,BrueggemanandFisher'smorewidelyusedtext,butveryrewarding.Gurda,John.TheMakingofMilwaukee.MilwaukeeCountyHistoricalSociety,1999.AnicehistoryofWisconsin’sleadingcity.Hall,Peter.CitiesinCivilization.NewYork:PantheonBooks,1998.SirPeterHallisthedeanofcurrentwritersaboutAnglo‐Americanplanning.Agglomerationworksforcultureaswellastheproductionofmoremundanegoods.Whythere'dbenoAeschyluswithoutAthens,noPicassowithoutParis.Garrigan,RichardT.andJohnF.C.Parson.RealEstateInvestmentTrusts:Structure,AnalysisandStrategy.UrbanLandInstitute,1998.*Jacobs,Jane.TheDeathandLifeofGreatAmericanCities.RandomHouse,1961.Averyinterestingandinfluentialbookarguingagainstmodernist/Bauhausapproachestothecity,infavorofmixeduse,neighborhoodsatlivablescale.Seealsoherlaterworks,somebelow.Jacobs,Jane.TheEconomyofCities.RandomHouse,1969.Jacobs,Jane.CitiesandtheWealthofNations.RandomHouse,1984.Inmyview,afaultyviewoftherelativerolesofimportsubstitutionandtrade.Butmanyurbaneconomistsignoreimportsubstitutionaltogether,whichiswrongtoo.Thoughtprovokingandwellworthreading.

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*Jarchow,Stephen(ed.).GraaskamponRealEstate.UrbanLandInstitute,1991.AgreatplacetolearnmoreaboutanimportantChapterintheWisconsinTradition.Landau,SarahBradford.RiseoftheNewYorkSkyscraper,1865‐1913.YaleUniversityPress,1996.*Lewis,Michael.Liar'sPoker.W.W.Norton&Co.,1989.OftenprofaneaccountoflifeonWallStreet;mortgagebackedsecuritiestradingplaysabigrole.Levy,MatthysandRichardPanchyk.EngineeringtheCity:HowInfrastructureWorks.ChicagoReviewPress,2000.*Mayer,Martin.TheBuilders.W.W.Norton,1978.Abitdated,butafascinatinghistoryofdevelopment.Mayer'sanother"brandname:"ifyouseeabookbyhim,readit.*Mayer,Martin.TheGreatest‐EverBankRobbery:TheCollapseoftheSavingsandLoanIndustry.CollierBooks,1990.MypersonalfavoriteofthemanybooksontheS&Lcrisis.Balancedandreadable.*Miller,DonaldL.CityoftheCentury:TheEpicofChicagoandtheMakingofAmerica.SimonandSchuster,1996.Idon'tknowwhatitisaboutChicago,butpeoplekeepwritinggreatbooksaboutit.ReadthisinconjunctionwithCronon.Miller'sisamorestraightforwardhistory,withafocusonthepeoplethatmadeithappen.CrononisamoreunusualcontributionthatshowshowChicagodevelopedinconjunctionwithitshinterland.Mills,EdwinS.andByung‐NakSong.UrbanizationandUrbanProblems.HarvardUniversityPress,1979.AclassicstudyofKorea'surbanization,withmanylessonsforothercountriesaswell.Mills,EdwinS.andJohnF.McDonald(eds.).SourcesofMetropolitanGrowth.Rutgers,CenterforUrbanPolicyResearch,1992.Mohan,Rakesh.UnderstandingtheDevelopingCountryMetropolis:LessonsfromtheCityStudyofBogotaandCali,Colombia.OxfordUniversityPress,1994.Doesurbaneconomics"work"inLatinAmerica?Absolutely!NationalRealtyCommittee.America'sRealEstate.Washington:NationalRealtyCommittee,1989.Noll,RogerG.andAndrewZimbalist(eds.).Sports,JobsandTaxes:TheEconomicImpactofSportsTeamsandStadiums.Brookings,1997.Don’tbeasap,yetagain.Norquist,JohnO.TheWealthofCities.Reading,Mass.:AddisonWesley,1998.Thoughtprovoking.OK,Idisagreewithhimonlightrail,buthowmany(former)bigcitymayorscouldwriteanun‐ghostedbookonurbanissues?Checkitout.Peiser,RichardB.withDeanSchwanke.ProfessionalRealEstateDevelopment.ULI,1992.Poorvu,WilliamJ.(WithJeffreyL.Cruikshank).TheRealEstateGame.FreePress,1999.Putstoomuchemphasisonthe"backoftheenvelope,"butstillagoodreadandagoodintroductiontothemindofsmall‐scaledevelopers.

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Quirk,JamesandRodneyD.Fort.PayDirt:TheBusinessofProfessionalTeamSports.Princeton,1997.Renaud,Bertrand.HousingandFinancialInstitutionsinDevelopingCountries.WorldBankStaffWorkingPaperNo.658,1984.Stilltheclassicintroductiontothesubject.Renaud,Bertrand,FrederikPretoriusandBernabeO.Pasadilla.MarketsAtWork:DynamicsoftheResidentialRealEstateMarketinHongKong.HongKongUniversityPress,1997.RE720students,checkoutthatFourQuadrantModelatwork!Richmond,Peter.Ballpark:CamdenYardsandtheBuildingofanAmericanDream.Simon&Schuster,1993.Forbaseballfansandanyoneinterestedinthedevelopmentofauniqueproject.Rusk,David.CitiesWithoutSuburbs.JohnsHopkinsUniversityPress,1993.Ruskpopularizedtheconceptofacity'selasticity,whichheusestomeanexpandability.Contrastsmytwofavoritesmalltowns:MadisonandHarrisburg.Rybczynski,Witold.CityLife.SimonandSchuster,1995.Anicelywrittenreviewofthingsurban.*Sabbagh,Karl.Skyscraper:TheMakingofaBuilding.PenguinBooks,1989.Goodbook,thevideoisevenbetter.Fourparts,playsonPBSfromtimetotime.Learnwhattodowhenyourmajorsubcontractorisnonperforming,andit'samobfirm(what,mobinvolvementinconstructioninNewYork??)Salvadori,Mario.WhyBuildingsStandUp:TheStrengthofArchitecture.WWNorton,2002.Schactman,Thomas.SkyscraperDreams:TheGreatRealEstateDynastiesofNewYork.Boston:Little,BrownandCo.,1991.ScientificAmerican.Cities:TheirOrigin,GrowthandHumanImpact.W.H.Freeman,1973.UrbanLandInstitute.ReinventingRealEstate.Washington,1995.UrbanLandInstitute.America'sRealEstate.1997.UrbanLandInstitute.OfficeDevelopmentHandbook.SecondEdition:Washington,1998.Wallis,AlanD.WheelEstate:TheRiseandDeclineofMobileHomes.Oxford,1991.White,JohnRobert(ed.).TheOfficeBuilding:FromConcepttoInvestmentReality.Chicago:CounselorsofRealEstate,1993.White,Sammis,RichardBinghamandEdwardHilled.FinancingEconomicDevelopmentinthe21stCentury.M.E.Sharpe,2003.Fulldisclosure,Iwroteoneofthechapters.

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*Williamson,JeffreyG..CopingWithIndustrialGrowthDuringtheBritishIndustrialRevolution.CambridgeUniversityPress,1990.Amasterfulworkofhistoricaleconomics.Urbanizationacenturyago.Highlyrecommended.WorldBank.NaturalDisasterHotspots:AGlobalRiskAnalysis.2005.WorldBank.WorldDevelopmentReport2009:ReshapingEconomicGeography.2009.Traffic,InfrastructureBoyer,KennethD.PrinciplesofTransportationEconomics.AddisonWesley,1998.Excellent,accessibletextthatwillgiveyouacomprehensivereviewoftransporteconomics.Cudahy,BrianJ.TheNewYorkSubway:ItsConstructionandEquipment.FordhamUniversityPress,1991.*Downs,Anthony.StuckinTraffic:CopingWithPeak‐HourTrafficCongestion.BrookingsInstitution/LincolnInstituteofLandPolicy,1992.Dunn,JamesA.Jr.DrivingForces:TheAutomobile,ItsEnemiesandthePoliticsofMobility.Brookings,1998.Underlotsofconditions,theautomobileisanefficient(albeitmispriced!)formoftransport.*Gomez‐Ibanez,JoseA.,WilliamB.TyeandCliffordWinston(eds.).EssaysinTransportationEconomicsandPolicy:AHandbookinHonorofJohnR.Meyer.Brookings,1999.Ifyoucanonlybuyonebookontransport,thisisit.Kirby,Ronald,KiranU.Bhatt,MichaelA.Kemp,RobertG.McGillivrayandMartinWohl.Para‐Transit:NeglectedOptionsforUrbanMobility.UrbanInstitute,n.d.Meyer,JohnR.,JohnKainandM.Wohl.TheUrbanTransportationProblem.HarvardUniversityPress,1966.Classic.Readit,andyou’llunderstandwhycommuterrailisnotthewayforwardforMadison.(Orforanyothercity,forthatmatter).Rose,MarkH.,BruceE.SeelyandPaulF.Barrett.TheBestTransportationSystemintheWorld:Railroads,Trucks,AirlinesandAmericanPublicPolicyintheTwentiethCentury.OhioStateUniversity,2006.Small,KennethA.,CliffordWinstonandCarolA.Evans.RoadWork:ANewHighwayPricingandInvestmentPolicy.Brookings,1989.Weicher,JohnC.(ed.).PrivateInnovationsinPublicTransit.Washington,D.C.:AmericanEnterpriseInstitute,1988.WorldBank.UrbanTransport:AWorldBankPolicyStudy.1986.Theviewfrom18th&HStreets.

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LandUse,Regulation5Babcock,RichardF.andCharlesL.Siemon.TheZoningGameRevisited.Boston:Oelgeschlager,GunnandHain,1985.Burchell,RobertW.andmanyothers.TheCostsofSprawl‐Revisited.Washington,D.C.:NationalAcademyPressfortheTransportationResearchBoard,1998.Areviewofalotofliterature.Team‐written,somewhatinconsistentfromonepagetoanother,lotstotakeissuewith,andcertainlynotagreatread,butagoodbibliographicreferenceforanyseriousstudentofthetopic.Daugherty,ArthurB.MajorUsesofLandintheUnitedStates,1992.U.S.DepartmentofAgriculture,1995.Dowall,DavidE.TheSuburbanSqueeze:LandConversionandRegulationintheSanFranciscoBayArea.UniversityofCaliforniaPress,1984.Dunkerley,Harold(ed.).UrbanLandPolicies:IssuesandOpportunities.OxfordUniversityPress,1983.Evans,AlanW.NoRoom!NoRoom!TheCostsoftheBritishTownPlanningSystem.London:InstituteofEconomicAffairs,1988.*Fischel,WilliamA.TheEconomicsofZoningLaws:APropertyRightsApproachtoAmericanLandUseControls.JohnsHopkins,1985.FischelistheleadinganalystofU.S.landuseregulation.He'saneconomistatDartmouth,buthasalsostudiedandtaughtinlawschools.InthisbookhefocusesontheCoasianapproachtolanduse.*Fischel,WilliamA.DoGrowthControlsMatter?AReviewofEmpiricalEvidenceontheEffectivenessandEfficiencyofLocalGovernmentLandUseRegulation.LincolnInstituteofLandPolicy,1990.*Fischel,William.TheHomevoterHypothesis:HowHomeValuesInfluenceLocalGovernmentTaxation,SchoolFinance,andLand‐UsePolicies.HarvardUniversityPress,2001.*Fischel,WilliamA.RegulatoryTakings:Law,EconomicsandPolitics.HarvardUniversityPress,1995.Fischel'sviewsevolvingfromhis1985classic;he'sanalyzingthepoliticsaswellastheeconomics,basedonacareerofstudyusingeconomics,law,andhisyearsonlocalplanningboards.Iflanduseisyourthing,readeverythingbyFischelyoucangetyourhandson.Hagman,DonaldG.andDeanMisczynski.WindfallsforWipeouts:LandValueCaptureandCompensation.Washington:AmericanSocietyofPlanningOfficials,1978.Aninterestingandprovocative(ifslightlyimpractical)idea.Evenifyouagreewithmethatitwon'twork,thinkingaboutitisworthwhile.Hoyt,Homer.OneHundredYearsofLandValuesinChicago.UniversityofChicagoPress,1933.Mykindofbook.Numbers,numbers,numbers!

5Which,ofcourse,bringsuptheClassMantra:Regulationperseisneithergoodnorbad.Whatmattersarethecostsandbenefitsofparticularregulationsunderparticularmarketconditions.

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OurownMorrisDavisistheintellectualheirtoHomerHoyt.Seehisworkonlandpricesat:http://www.lincolninst.edu/subcenters/land‐values/Nelson,ArthurC.DevelopmentImpactFees:PolicyRationale,Practice,TheoryandIssues.AmericanPlanningAssociationPress,1988.HousingAdvisoryCommissiononRegulatoryBarrierstoAffordableHousing."NotinMyBackyard:"RemovingBarrierstoAffordableHousing.HUD,1991.Boelhouwer,PeterJ.andHarryM.H.vanderHeijden.HousingSystemsinEurope:PartI,AComparativeStudyofHousingPolicy.DelftUniversityPress,1992.Bradbury,KatherineandAnthonyDowns.DoHousingAllowancesWork?BrookingsInstitution,1981.WehavedozensofhousingsubsidiesintheU.S.;takentogethertheFederalGovernmentspendsmoreonthemthanon"welfare."Howshouldtheybestructured?*RichardGreenandStephenMalpezzi,APrimeronU.S.HousingMarketsandPolicy.TheUrbanInstitutePressfortheAmericanRealEstateandUrbanEconomicsAssociation,2003.RichardandIwouldcheerfullyrefundourroyaltiestoyou,hadwerememberedtonegotiateany.IfyoureallylikeitI’llemailthePowerPointaswell.JointCenterforHousingStudies.StateoftheNation'sHousing.Cambridge:Harvard,annual.Downloadable.Alittletoofocusedonproductionprogramsasthewayforward,inmyview,butveryinformativeandwelldone.Everyoneinterestedinhousingshouldreadit,everyyear.Kleinman,Mark.Housing,WelfareandtheStateinEurope:AComparativeAnalysisofBritain,FranceandGermany.Elgar,1996.Maclennan,Duncan.HousingEconomics.London:Longman,1982.TheclassicUKtext.*Mayo,StephenK.,withmanyothers.InformalHousinginEgypt.AbtAssociates,1982.Hardtofind,butamasterfulstudyofadevelopingcountryhousingmarket.Hardtofind,seemeifyouwantapdf.Pozdena,RandallJ.ModernEconomicsofHousing.QuorumBooks,1988.Anicebook,increasinglyhardtofindthough.Renaud,Bertrand.TheHousingSystemoftheFormerSovietUnion:WhyDotheSovietsNeedHousingMarkets?HousingPolicyDebate,3(3),1992,pp.877‐99.Riis,Jacob.HowtheOtherHalfLives.OriginallypublishedbyCharlesScribner'sSons,1890.RepublishedbyDoverPublications,1971,with100photographsfromtheRiisCollection.

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Salins,PeterD.andGerardC.S.Mildner.ScarcityByDesign:TheLegacyofNewYorkCity'sHousingPolicies.Cambridge,Mass.,HarvardUniversityPress,1992.Turner,Bengt,Hegedus,Jozsef,andTosics,Ivan,Editors.TheReformofHousinginEasternEuropeandtheSovietUnion.London,NewYork:Routledge,1992.WorldBank.Housing:EnablingMarketstoWork.WorldBankPolicyPaper,1993.Excellentreviewofhousingmarketsandpoliciesindevelopingcountries.Yinger,John.ClosedDoors,LostOpportunities:TheContinuingCostsofHousingDiscrimination.RussellSage,1995.HomelessnessBurt,MarthaA.OverTheEdge:TheGrowthofHomelessnessinthe1980s.RussellSageFoundationandTheUrbanInstitute,1992.Jencks,Christopher.TheHomeless.HarvardUniversityPress,1994.O'Flaherty,Brendan.MakingRoom:TheEconomicsofHomelessness.HarvardUniversityPress,1996.Oftensomewhattechnical,butthemostinnovativeanalysisofhomelessnessinsometime.*PeterRossi,DownandOutinAmerica.UniversityofChicago,1989.Aneminentsociologistlooksatthehomeless.IncomeandPoverty;andSomeSocialPathologiesBurtless,Gary(ed.).AFutureofLousyJobs?Brookings,1990.*Danziger,SheldonH.andRobertH.Haveman.UnderstandingPoverty.NewYork:RussellSage,2001.Danziger,SheldonH.,GaryD.SandefurandDanielH.Weinberg(eds.).ConfrontingPoverty:PrescriptionsforChange.HarvardUniversityPress,1994.Ellwood,DavidT.PoorSupport:PovertyintheAmericanFamily.BasicBooks,1988.Gottschalk,P."Inequality,IncomeGrowth,andMobility:TheBasicFacts."TheJournalofEconomicPerspectives,1997,11(2),pp.21‐40.Gregory,Peter.TheMythofMarketFailure:EmploymentandtheLaborMarketinMexico.JohnsHopkins,1986.Haveman,RobertH.andBarbaraL.Wolfe.SucceedingGenerations:OntheEffectsofInvestmentsinChildren.RussellSageFoundation,1994.

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Jencks,ChristopherandMeredithPhillips(eds.).TheBlack‐WhiteTestScoreGap.BrookingsInstitution,1998.Jencks,ChristopherandPaulE.Peterson.TheUrbanUnderclass.Brookings,1991.*Levy,FrankS.TheNewDollarsandDreams:AmericanIncomesandEconomicChange.RussellSageFoundation,1998.Levy,FandMurnane,RJ.TheNewDivisionofLabor:HowComputersAreCreatingtheNextJobMarket.PrincetonUniversityPress,2004.Madden,JaniceF.ChangesinIncomeInequalityWithinU.S.MetropolitanAreas.W.E.UpjohnInstitute,2000.Carefulempiricalstudythatdemonstratesmetropolitangrowthisassociatedwithimprovementsinthedistributionofincome.Mishel,Lawrence,JaredBernsteinandJohnSchmitt.TheStateofWorkingAmerica.CornellUniversityPressfortheEconomicPolicyInstitute,2001.Wilson,JamesQ.andJoanPetersilia(eds.).Crime.SanFrancisco:InstituteforContemporaryStudies,1995.*Wilson,WilliamJulius.TheTrulyDisadvantaged:TheInnerCity,theUnderclassandPublicPolicy.UniversityofChicagoPress,1987.Wilson,WilliamJulius.WhenWorkDisappears:TheWorldoftheNewUrbanPoor.NewYork:AlfredKnopf,1996.EducationBurtless,Gary(ed.).DoesMoneyMatter?TheEffectofSchoolResourcesonStudentAchievementandAdultSuccess.Brookings,1996.*JohnChubbandTerryMoe,Politics,MarketsandAmerica'sSchools.Brookings,1990.Hanushek,EricA.MakingSchoolsWork:ImprovingPerformanceandControllingCosts.Brookings,1994.Hanushek,EricA.andDaleW.Jorgenson(eds.).ImprovingAmerica'sSchools:TheRoleofIncentives.Washington,D.C.:NationalAcademyPress,1996.Odden,AllanR.andLawrenceO.Picus.SchoolFinance:APolicyPerspective.SecondEdition.McGrawHill,2000.Psacharopoulos,GeorgeandMaureenWoodhall.EducationforDevelopment:AnAnalysisofInvestmentChoices.Oxford,1985.Theinternationalliterature.

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*Witte,JohnF.TheMarketApproachtoEducation:AnAnalysisofAmerica'sFirstVoucherProgram.Princeton,2000.Balancedempiricalwork,basedonMilwaukee’svoucherexperiment.PublicFinanceandGovernance,andLocalEconomicDevelopmentAltshuler,Alan,WilliamMorrill,HaroldWolmanandFaithMitchell(eds.).GovernanceandOpportunityinMetropolitanAmerica.Washington,D.C.:NationalAcademyPress,1999.*Bartik,TimothyJ.WhoBenefitsfromStateandLocalEconomicDevelopmentPolicies?Kalamazoo:W.E.UpjohnInstituteforEmploymentResearch,1991.Ifyou'reinterestedinlocaldevelopmentissues,thisisamustread.Davis,StevenJ.,JohnC.HaltiwangerandScottSchuh.JobCreationandDestruction.MIT,1996.Madden,JaniceF.ChangesinIncomeInequalityWithinU.S.MetropolitanAreas.W.E.UpjohnInstitute,2000.Demonstratesthatgrowingmetropolitanareasalsoimprovetheirdistributionofincome.Malpezzi,Stephen.WhatDoWeKnowAboutEconomicDevelopment?WhatDoesitMeanForWisconsin'sStateandLocalGovernments?UniversityofWisconsin,CenterforUrbanLandEconomicsResearch,2001.AroughdraftofaforthcomingbookfromCongressionalQuarterlyPress.Musgrave,RichardandPeggyMusgrave.PublicFinanceinTheoryandPractice.3rdEdition:McGrawHill,1980.Quigley,JohnM.andDanielL.Rubinfeld(eds.).AmericanDomesticPriorities:AnEconomicAppraisal.UniversityofCaliforniaPress,1985.Rivlin,AliceM.RevivingtheAmericanDream:TheEconomy,TheStates,andtheFederalGovernment.Brookings,1992.TheEnvironmentAnderson,DanR.CorporateSurvival:TheCriticalImportanceofSustainabilityRiskManagement.iUniverse,2005.SustainabilityisnotjusttheSierraClub’sconcern.Bartone,Carl,JanisBernstein,JosefLeitmannandJochenEigen.TowardEnvironmentalStrategiesforCities.WorldBank/UNCHS(Habitat),UrbanManagementProgrammeNo.18,1994.Blinder,Alan.HardHeadsandSoftHearts.AddisonWesley,1987.Excellentchapterontheenvironment.Botkin,DanielB.PoweringtheFuture:AScientist'sGuidetoEnergyIndependence.FTPress,2010.

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Burke,EdmundIIIandKennethPomeranz.TheEnvironmentandWorldHistory.Berkeley:UniversityofCaliforniaPress,2009.Briscoe,John.WaterSupplyandHealthinDevelopingCountries:SelectivePrimaryCareRevisited.InJosephS.Tulchin(ed.),Habitat,HealthandDevelopment:ANewWayofLookingatCitiesintheDevelopingWorld.Bromley,DanielW.(ed.).HandbookofEnvironmentalEconomics.Cambridge,MA:Blackwell,1995.Church,ThomasW.andRobertT.Nakamura.CleaningUptheMess:ImplementationStrategiesinSuperfund.BrookingsInstitution,1993.Easterbrook,Gregg.AMomentontheEarth:TheComingAgeofEnvironmentalOptimism.NewYork:Viking,1995. Frej,AnneB.ed.GreenOfficeBuildings:APracticalGuidetoDevelopment.UrbanLandInstitute,2005.George,Rose.TheBigNecessity:AdventuresintheWorldofHumanWaste.London:PortobelloBooks,2008.Readthisafterseveralofmyadventurestoriesaboutlowcostsanitationindevelopingcountries(andwesternPennsylvania),andyou’llunderstandwhyIturnofSouthParkwhenMr.Hankeyappears.ButwhileI’mthinkingofit,checkoutthefollowingSouthParkepisodesthatilluminatethemajoreconomicissuesoftheday:

Episode2‐17:UnderpantsGnomesEpisode8‐09:SomethingWal‐MartThisWayComesEpisode13‐03:Margaritaville

Graedel,ThomasE.andPaulCrutzen.Atmosphere,ClimateandChange.W.H.Freeman:ScientificAmericanLibraryPaperbackNo.55,1997.Hardin,Garrett.TheTragedyoftheCommons.Science,162,December13,1968,pp.1243‐48.Hardoy,Jorge,SandyCairncrossandDavidSatterthwaite(eds.).ThePoorDieYoung:HousingandHealthinThirdWorldCities.London:EarthscanPublications,1990.Houghton,J.T.GlobalWarming:TheCompleteBriefing.CambridgeUniversityPress,1997.*Hulme,Mike.WhyWeDisagreeAboutClimateChange:UnderstandingControversy,InactionandOpportunity.CambridgeUniversityPress,2009.Surprise!AlGoreandSenatorJimInhofearebothwrong!NOBODYknows,forsure,whetherglobalwarmingexists,whetherit’sman‐made,orwhetherwecanfixit.Butonceyouunderstandthenatureofourunderstandingoftheproblem,you’llunderstandwhyweneedtotry.Whatisyourlossfunction?Kahn,MatthewE.GreenCities:UrbanGrowthandtheEnvironment.BrookingsInstitution,2006.Kahn,MatthewE.Climatopolis,BasicBooks,2010.

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Kalbermatten,Johnetal.AppropriateTechnologyforWaterSupplyandSanitation:ASummaryofTechnicalandEconomicOptions.WorldBank,1980.Kalbermatten,John,DeAnneJulius,DuncanMaraandCharlesGunnerson.AppropriateSanitationAlternatives:ATechnicalandEconomicAppraisal.JohnsHopkinsUniversityPress,1982.Lomborg,Bjorn.TheSkepticalEnvironmentalist.CambridgeUniversityPress,2001.Highlycontroversial–seethenumerouscommentsproandconinScientificAmerican,TheEconomist,andonseveralwebsites.Oldstone,MichaelB.A.Viruses,PlaguesandHistory.OxfordUniversityPress,1998.Pearce,DavidW.andR.KerryTurner.EconomicsofNaturalResourceandtheEnvironment.Hopkins,1990.Pearce,David,AnilMarkandyaandEdwardB.Barbier.BlueprintforaGreenEconomy.Earthscan,1989.Philander,S.George.IstheTemperatureRising?TheUncertainScienceofGlobalWarming.PrincetonUniversityPress,1998.Pielou,E.C.FreshWater.UniversityofChicago,1998.Porter,DouglasR.etal.ThePracticeofSustainableDevelopment.UrbanLandInstitute,2000.*Reisner,Marc.CadillacDesert:TheAmericanWestandItsDisappearingWater.PenguinBooks,1986.Thisisagreatbookthathelpsexplainwhy“theemptyquarter”shouldbemaybeevenemptier.Rosen,George.AHistoryofPublicHealth.NewYork:MDPublications,1958.Russ,ThomasH.RedevelopingBrownfields.McGrawHill,1999.Sperling,DanielandDeborahGordon.TwoBillionCars:DrivingtowardSustainability.Oxford,2009.Tietenberg,ThomasH.EnvironmentalandNaturalResourceEconomics.Scott,ForesmanandCo.,1988.Wildavsky,Aaronetal.ButIsItTrue?ACitizen'sGuidetoHealthandSafetyIssues.HarvardUniversityPress,1995.Zinsser,H.Rats,LiceandHistory.Boston:Little,Brown,1963.DataDataisgood.Herearesomesourcesyoushouldinvestigate:

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CouncilofEconomicAdvisors.EconomicReportofthePresident.Washington,D.C.:Annual.Thefirstpartofthebookisawell‐writtenreviewofeconomicevents,althoughstrictlyfromthepointofviewofwhateverAdministration'sinpower.Thelastpartisaveryusefulcompendiumofbasicmacroeconomicindicators.Savageau,DavidandRichardBoyer.PlacesRatedAlmanac.Revised.PrenticeHall,1993.Comesouteveryyearnow.Theirratingsaremostlynonsense,butlotsofgooddata.U.S.DepartmentofCommerce,BureauoftheCensus.StatisticalAbstractoftheUnitedStates.U.S.GovernmentPrintingOffice,Annual.ThisisagreatbooktohavearoundforbasicdataontheU.S.UnitedNations.WorldUrbanizationProspects:The1994Revision.NewYork,ST/ESA/SER.A/150,1995.Anewedition'soutnow.Containsbasicdataonurbanpopulationforeverycountry.WorldBank.WorldDevelopmentIndicators.AnnualbookandcompanionCD‐ROMDatabase,Washington,1995.Greatsource.Pagebypage,it'savailableforfreeatwww.worldbank.org.Andspeakingofwebsites,gettoknowthese:

www.census.govwww.bea.govwww.bus.wisc.edu/realestatewww.cbo.govwww.gao.gov

EconometricsandEmpiricalTechniquesWhattodowiththatdataonceyou’vegotit:Diebold,FrancisX.ElementsofForecasting.ThirdEdition,Thomoson,2004.Anexcellentandcomprehensivelookathowtohandletime‐seriesissues.Fair,RayC.PredictingPresidentialElections,andOtherThings.StanfordUniversityPress,2002.Areadableandinterestingintroductiontoforecasting.Murray,MichaelP.Econometrics:AModernIntroduction.PearsonAddisonWesley,2006.Hasagreatintroductiontoregression,helpingyouseetheintuitionbehindleastsquares(i.e.whyminimizingthesumofsquarederrorsprovidesthesame“bestfit”thatmostofuswoulddrawintuitivelythroughasetofdatapoints).Pindyck,RobertS.andDanielL.Rubinfeld.EconometricModelsandEconomicForecasts.3rdEd.,McGrawHill,1991.Studemund,A.H.UsingEconometrics:APracticalGuide.ThirdEdition.AddisonWesley,1997.Oneofthemostaccessiblebooksexplainingissueslikeserialcorrelation,Grangercausality,whattodo

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aboutendogenousrighthandsidevariables,andotherthingsthatbedeviluswhenweworkwithreal‐worlddata.MiscellaneousBraudel,Fernand.TheStructuresofEverydayLife:CivilizationandCapitalism,15th‐18thCenturies.HarperandRow,1981.Covey,StephenR.1999.The7HabitsofHighlyEffectivePeople.Simon&SchusterNewYork.ProfessorOrtalo‐Magnéisabigfanofthisbook.Findoutwhy!Drucker,Peter.InnovationandEntrepeneurship.HarperBusiness,1985.Gamow,George.One,Two,Three...Infinity.DoverReprint,1988.Einstein,AlbertandLeopoldInfeld.TheEvolutionofPhysics:TheGrowthofIdeasFromEarlyConceptstoRelativityandQuanta.NY:SimonandShuster,1938.Alotoffuntoread.Oftenreprinted.Gardner,Howard.LeadingMinds:AnAnatomyofLeadership.BasicBooks,1995.Goodwin,DorisKearns.TeamofRivals.SimonandSchuster,2005.Hogben,Lancelot.MathematicsfortheMillion.WWNorton,1993.Huff,Daniel.HowtoLieWithStatistics.Norton,1954.Oneoftheall‐timegreat"Don'tbeasap"classics.Isaacson,W.(2004).BenjaminFranklin:AnAmericanLife.AsaPennsylvanian,it’snaturalthatBenisoneofmyall‐timeheros.He’shadmanybiographers,thisisaterrificone. Isaacson,W.(2011).SteveJobs,SimonandSchuster.Ihaven’tactuallyreadthisoneyet,butIincludeitwithconfidencebecauseseveralpeoplewhoseopinionIrespectraveaboutit.DavidShulmansaysit’sthebestbookhe’sreadinsometime. Kasner,EdwardandJamesNewman.MathematicsandtheImagination.Dover,2001.Kleppner,DanielandNormanRamsey.QuickCalculus.Wiley,1985.Lewis,Michael.Moneyball:TheArtofWinninganUnfairGame.W.W.Norton,2003.Well‐knownstoryofhowtheOaklandAthleticsusedstatisticalmodelsrelatingbaseballplayersalaries,playerstats,andwins,tobuildalow‐costchampionshipteam.Afewyearsafterthepublicationofthisbook,mostteamshadhiredstatisticians.Whatdoyouthinkhappenednext?Seethelesserknownfollow‐up:Hakes,JKandRDSauer.2006.AnEconomicEvaluationoftheMoneyballHypothesis.JournalofEconomicPerspectives:173‐186.Mann,T.E.andN.J.Ornstein(2008).TheBrokenBranch:HowCongressisFailingAmericaandHowtoGetitBackonTrack,OxfordUniversityPress.

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Mann,T.E.andN.J.Ornstein(2012).It'sEvenWorsethanItLooks:HowtheAmericanConstitutionalSystemCollidedwiththeNewPoliticsofExtremism,BasicBooks.McInerny,D.Q.BeingLogical:AGuidetoGoodThinking.RandomHouse,2004.Mackay,Charles.ExtraordinaryPopularDelusionsandtheMadnessofCrowds.Originallypublished1852.ReprintedbyBoston:L.C.Page&Co.,1932.Whatdoesthestockmarkethaveincommonwithtulips?Malpezzi,Stephen.TheWisconsinPrograminRealEstateandUrbanLandEconomics:ACenturyofTraditionandInnovation.Madison,WI:JamesA.GraaskampCenterforRealEstate,2009.Maor,Eli.e:TheStoryofaNumber.PrincetonUniversityPress,1994.6Mann,CharlesC.1491:NewRevelationsoftheAmericasbeforeColumbus.Vantage,2005.Micklethwait,JohnandAdrianWoolridge.TheWitchDoctors:MakingSenseoftheManagementGurus.NewYork:RandomHouse1996.Isthereanythingworthwhileinthose"managementofteams"courses?Naipul,V.S.AHouseforMr.Biswas.Vintage,1983.Desireforahouseisprettymuchuniversal.O'Rourke,P.J.EattheRich:ATreatiseonEconomics.NewYork:AtlanticMonthlyPress,1998.Sometimesalittleoffthemark,butmostlyon,alwayspoliticallyincorrect,andfunny.Reynolds,Quentin.I,WillieSutton.NewYork:Farrar,StrausandYoung,1953."Becausethat'swherethemoneyis."(Actually,Williesaysheneversaidit.Toobad.It’stoogoodastorynottobetrue!)Schwartz,JacobT.IntroductiontoMatricesandVectors.DoverReprint,2001.Investinalittlelinearalgebra.Itmakesmanyproblemsinrealestate,business,economicsandfinancemucheasiertosolve.Strunk,WilliamandE.B.White.TheElementsofStyle.ThirdEdition,Macmillan,1979.Myfavoriteguidetohowtowritegood.Readit.Knowit.Liveit.Truss,L.Eats,Shoots,andLeaves:TheZeroToleranceApproachtoPunctuation.Gotham,2004.Tufte,EdwardR.TheVisualDisplayofQuantitativeInformation.Chesire,Connecticut:GraphicsPress,1983.Tuftehasfouroftheselarge‐formatbooks,whichareworksofartinthemselves.See:VisualandStatisticalThinking:DisplaysofEvidenceforMakingDecisions;BeautifulEvidence;andVisualExplanations:ImagesandQuantities,EvidenceandNarrative.BeforeyoufindyourselfusingthoseatrociousMicrosoft‐provideddesigntemplatesinPowerPoint,orwackywebpagestyleswithabunchofJavacraprunningallovertheplace,havealookatTufte'swork.Ingraphicdesign,lessusuallyismore.

6RemembertheClassSlogan:Thelogarithmisourfriend.

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Ontheotherhand,inarchitecture,lessisoftenless.Wanttodriveanarchitectureprofessorcrazy?TiehimupandreadtohimfromTomWolfe'sFromBahaustoOurHouse.Wong,DonnaM.TheWallStreetJournalGuidetoInformationGraphics:TheDosandDon'tsofPresentingData,Facts,andFigures.W.W.Norton,2010.Andtokeepupinthefuture.PerhapsthebestsinglethingyoucandotostayinformedabouttheworldistoreadTheEconomistonaregularbasis.Subscribershaveaccesstoanexcellenton‐lineedition.(Otherbusinessmagazines,likeBarron's,BusinessWeek,Fortune,andForbes,havetheirmoments,withmorecoverageofpersonalitiesandindividualcompanies,buthavelittleusefulanalysisofwhatisreallydrivingtheeconomy.)I'dalsosubscribetotheWallStreetJournalandtheNewYorkTimes,ataminimum.TheFinancialTimesisalsoquitegood,andessentialifyou'regoingtobeworkinginternationally.Here'salistofmorescholarlyjournalsthatcoveralotofurban/realestateandrelatedtopics.ScholarlyjournalswhichareusuallyveryaccessibleJournalofEconomicPerspectives.Veryhighlyrecommended.JournalofEconomicLiteratureRealEstateFinanceJournaloftheAmericanPlanningAssociationUrbanLandHousingPolicyDebateJournalofRealEstateLiteratureBrookingsPapersonUrbanAffairs.Brandnew,especiallyhighlyrecommended.CityscapeSomewhatuneven,butthebestarticlesareverygood;andit’safreedownloadfromwww.huduser.orgScholarlyjournalswhichareoftensomewhattechnicalbutmanyarticlesarestillaccessibleRealEstateEconomicsTheleadingrealestatejournal.JournalofRealEstateFinanceandEconomicsThesecondleadingjournal,butdarnedgood.JournalofRealEstateResearchLotsofarticlesaboutREITs,etc.JournalofHousingEconomicsJournalofHousingResearchLandEconomicsThejournalthatstemsfromRichardEly'sprograminLandandPublicUtilityEconomics(theforerunnerofUW'srealestateprogram).CurrentlyeditedbyourownProfessorDanBromley.Lotsofgoodenvironmentalarticlesaswellasonlanduse,housing,etc.UrbanGeographyInternationalRegionalScienceReviewUrbanStudiesScholarlyjournalswhichareusuallyprettytechnical,oftenonmoreabstractsubjects,buttakeacrackatthemanyway

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JournalofUrbanEconomics.Oftenprettytechnical,butveryrewarding.Theleadingjournalinurbaneconomics.RegionalScienceandUrbanEconomicsAclosesecondtoJUE,andmorestuffonregionaltopics.JournalofRegionalScienceSomehandygovernmentwebaddresses:HUD:http://portal.hud.gov/portal/page/portal/HUDHUDPD&R:http://www.huduser.org/portal/CouncilofEconomicAdvisors:http://www.whitehouse.gov/administration/eop/ceaNationalEconomicCouncilhttp://www.whitehouse.gov/administration/eop/necCongressionalBudgetOfficehttp://www.cbo.gov/GovernmentAccountabilityOfficehttp://www.gao.gov/Some“thinktanks”TheUrbanInstitutehttp://www.urban.org/BrookingsInstitutionhttp://www.brookings.edu/TheUpjohnInstitutehttp://www.upjohn.org/RandCorporationhttp://www.rand.org/PewResearchCenterhttp://pewresearch.org/NationalBureauofEconomicResearchhttp://www.nber.org/Somemorethinktanks,thatleanalittlemore!AmericanEnterpriseInstitute

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http://www.aei.org/CatoInstitutehttp://www.cato.org/ManhattanInstituteforPolicyResearchhttp://www.manhattan‐institute.org/EconomicPolicyInstitutehttp://www.epi.org/CenteronBudgetandPolicyPrioritieshttp://www.cbpp.org/ProgressivePolicyInstitutehttp://progressivepolicy.org/BlogsCheckoutourownblogfromtheJamesA.GraaskampCenterforRealEstate:http://wisconsinviewpoint.blogspot.com/Ongeneraleconomics,it’shardtobeatUWProfessorMenzieChinn’sblog(withfamedtimeserieseconometricianJamesHamilton):http://www.econbrowser.com/Whilehe’snolongeratUW,ourgoodfriendProfessorRichardGreenstillembodiestheWisconsinIdea,WesternBranchOffice(a.k.a.USC!):http://real‐estate‐and‐urban.blogspot.com/OtherblogsIrecommendinclude:http://www.calculatedriskblog.com/http://economix.blogs.nytimes.com/http://blogs.wsj.com/economics/ http://www.economist.com/blogs/freeexchange/http://delong.typepad.com/http://www.roubini.com/ http://gregmankiw.blogspot.com/http://krugman.blogs.nytimes.com/http://seekingalpha.com/article/3070‐the‐economics‐blogs‐resource‐pagehttp://marginalrevolution.blogs.com/marginalrevolution/http://knowledge.wharton.upenn.edu/

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(Recommendinthefollowingsense:theseareserioussites,evenwhenIdisagreewiththem.Siftingandwinnowingtime.)Addendum:SomeRegionalReferencesOurundergradstudentshaveafieldtriptoExpoRealeveryyear(aspartoftheinternationalrealestateelective).OurMBAstaketripstoMIPIMandtooneormorecountries(recentlyincludingChina,Brazil,Vietnam).RegardingMIPIMandExpoRealsee:http://www.mipim.com/en/homepage/http://www.exporeal.net/AndseetheentriesontheWisconsinRealEstateViewpointregardingthesetrips.Lotsofdetailthere!(BTW,thissectionisalittleunevenatthemoment–we’llimproveitthisyear!)AFewBooksaboutChinaBecker,Jasper.TheChinese:AnInsider'sLookattheIssueswhichAffectandShapeChinaToday.Oxford,2000.Chow,GregoryC.China'sEconomicTransformation.SecondEdition,Blackwell,2002.Chow,GregoryC.KnowingChina.WorldScientific,2004.Denison,EdwardandGuangYuRen.BuildingShanghai:TheStoryofChina'sGateway.JohnWiley,2006.Fairbank,JohnK.andMerleGoldman.China:ANewHistory.EnlargedEdition.Harvard,1998.Gittings,John.TheChangingFaceofChina:FromMaotoMarket.Oxford,2005.Lardy,NicholasR.IntegratingChinaintotheGlobalEconomy.BrookingsInstitutionPress,2001.McGregor,James.OneBillionCustomers:LessonsfromtheFrontLinesofDoingBusinessinChina.WallStreetJournalBooks,2005.*Naughton,Barry.TheChineseEconomy:TransitionsandGrowth.MITPress,2007.ThiswasthebookIreadtoprepformysummertriptoChina.Amasterfulandaccessiblereview.Spence,JonathanD.TheSearchforModernChina.NewYork:W.W.Norton,1990.Starr,JohnBryan.UnderstandingChina:AGuidetoChina'sEconomyHistory,andPoliticalCulture.2ndEd.,HillandWang,2001.

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Yusuf,ShahidandWipingWu.TheDynamicsofUrbanGrowthinThreeChineseCities.Oxford,1997.AFewBooksaboutJapanIhaven’tbeenworkingmuchonJapanlately,buthereareafewsuggestions:Katz,Richard.JapanesePhoenix:TheLongRoadtoEconomicRevival.M.E.Sharpe,2002.Onmycurrentmust‐readpilealongwithSchlesinger.FrankGibney(ed.),UnlockingtheBureacrat'sKingdom:DeregulationandtheJapaneseEconomy.Brookings,1998.GoodchapteronlandusebyKoichiMera.Schlesinger,Jacob.ShadowShoguns:TheRiseandFallofJapan'sPostwarPoliticalMachine.StanfordUniversityPress,1999.Tett,Gillian.SavingtheSun:HowWallStreetMavericksShookUpJapan'sFinancialWorldandMadeBillions.Collins2004.ThisisaterrificbookthatgivesalotofinsightonJapan’scrisis,theroleofforeigninvestorsinshakingupamarket,andthedifficultiesofworkingacrosscultures.BooksaboutOtherAsiaAcharya,ShankarandRakeshMohan.2010.India'sEconomy:PerformancesandChallenges.Oxford.Kim,AnnetteM.2008.LearningtobeCapitalists:EntrepreneursinVietnam’sTransitionEconomy.OxfordUniversityPress,USA.Mehta,S.2005.MaximumCity:BombayLostandFound.Vintage.Morley,JWandMNishihara.1997.VietnamJoinstheWorld.MESharpeInc.IlSakong.1993.KoreaintheWorldEconomy.InstituteforInternationalEconomicsWashingtonDC.AFewBooksaboutLatinAmericaBaer,W.2001.TheBrazilianEconomy:GrowthAndDevelopment.GreenwoodPublishingGroup.Bethell,L.1998.LatinAmerica:EconomyandSocietysince1930.CambridgeUniversityPress.Bulmer‐Thomas,V.2003.TheEconomicHistoryOfLatinAmericaSinceIndependence.CambridgeUniversityPress.Cardoso,EAandAHelwege.1995.LatinAmerica’sEconomy:Diversity,Trends,andConflicts.TheMITPress.

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Edwards,S.1995.CrisisandReforminLatinAmerica:FromDespairtoHope.AWorldBankPublication.Franko,PM.2007.ThePuzzleOfLatinAmericanEconomicDevelopment.Rowman&LittlefieldPublishers.Freire,M,RLima,DCira,AndBFerguson.2007.LandandUrbanPoliciesforPovertyReduction:Proceedings.WorldBank,IPEA.Mohan,R.1994.UnderstandingtheDevelopingMetropolis:LessonsFromTheCityStudyOfBogotáAndCali,Colombia.AWorldBankPublication.Thorp,R.1998.Progress,PovertyandExclusion:AnEconomicHistoryofLatinAmericainthe20thcentury.Inter‐AmericanDevelopmentBank.AFewBooksaboutEuropeDelaDehesa,G.2006.EuropeattheCrossroads.McGraw‐Hill.Eichengreen,B.2008.TheEuropeanEconomysince1945:CoordinatedCapitalismandBeyond.PrincetonUniversityPress.Reid,TR.2004.TheUnitedStatesofEurope:TheNewSuperpowerandtheEndofAmericanSupremacy.PenguinPress.AFewBooksabouttheMiddleEast/CentralAsiaFreely,J.1996.Istanbul:TheImperialCity.VikingPress.Pope,N,HPope,andDPipes.1999.TurkeyUnveiled:AHistoryofModernTurkey.MiddleEastQuarterly.Richards,AandJWaterbury.2008.APoliticalEconomyoftheMiddleEast.WestviewPress.AFewBooksaboutAfricaCollier,P.2007.TheBottomBillion:WhythePoorestCountriesareFailingandWhatCanBeDoneAboutIt.Oxford.Meredith,M.(2011).TheFateofAfrica:AHistoryoftheContinentSinceIndependence,PublicAffairs. Radelet,S.(2010).EmergingAfrica:How17CountriesareLeadingtheWay,CenterforGlobalDevelopment.

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Ndulu,BJ,JPAzam,andSAO'Connell.2007.ThePoliticalEconomyofEconomicGrowthinAfrica,1960‐2000.CambridgeUniversityPress.Sacerdoti,E.2005.Mauritius:ChallengesofSustainedGrowth.InternationalMonetaryFund.