The Armchair Economist
The Armchair Economist: Economics and Everyday Life is a book on economics authored by Steven Landsburg, a professor at the University of Rochester. Initially released in 1993, a revised version appeared in May 2012. Landsburg encapsulates the book’s main idea with the phrase: "[m]ost of economics can be summarized in four words: People respond to incentives." Building on this concept, he examines the unintended consequences of policies like automobile safety standards and environmental regulations. The text covers a range of subjects such as budget deficit, unemployment, economic growth, and cost–benefit analysis.
Chapter 4 introduces the "Indifference Principle," while Chapter 9 explores the Coase Theorem formulated by professor Ronald Coase.
This work is frequently suggested as essential reading within economics programs at various academic institutions.
Background
Landsburg obtained his Master of Arts from the University of Rochester in 1974 and earned his Ph.D. from the University of Chicago. He joined the University of Rochester as a Professor of Economics and published his debut book, Price Theory and Applications, in 1989, followed by The Armchair Economist in 1993. His writings have appeared in outlets such as Slate and The Wall Street Journal, alongside several other economics titles.
The updated 2012 edition modernized the original content for contemporary readers by revising chapters and adding more than 80 pages to address recent economic developments.