What do these Nobel prize winning economists have in common?

Princeton Makes. Stockholm Takes.

Princeton University Press is proud to be the publisher of these Nobel Prize-winning economists

Angus DeatonThe Great Escape jacket

The Great Escape: Health, Wealth, and the Origins of Inequality

Demonstrating how changes in health and living standards have transformed our lives, The Great Escape is a powerful guide to addressing the well-being of all nations.


The Theory of Corporate Finance jacket2014 Jean Tirole

The Theory of Corporate Finance

Tirole conveys the organizing principles that structure the analysis of today’s key management and public policy issues, such as the reform of corporate governance and auditing; the role of private equity, financial markets, and takeovers; the efficient determination of leverage, dividends, liquidity, and risk management; and the design of managerial incentive packages.

2013 Lars Peter HansenRobustness jacket


What should a decision maker do if the model cannot be trusted? This book adapts robust control techniques and applies them to economics. By using this theory to let decision makers acknowledge misspecification in economic modeling, the authors develop applications to a variety of problems in dynamic macroeconomics.

Irrational Exuberance jacket2013 Robert J. Shiller

Irrational Exuberance

In addition to diagnosing the causes of asset bubbles, Irrational Exuberance recommends urgent policy changes to lessen their likelihood and severity—and suggests ways that individuals can decrease their risk before the next bubble bursts. No one whose future depends on a retirement account, a house, or other investments can afford not to read it.

Handbook of Experimental Economics jacket2012 Alvin E. Roth

The Handbook of Experimental Economics (Edited with John H. Kagel)

This book presents a comprehensive critical survey of the results and methods of laboratory experiments in economics:public goods, coordination problems, bargaining, industrial organization, asset markets, auctions, and individual decision making.

2012 Lloyd S. Shapley

Advances in Game Theory (AM-52) (Edited with Melvin Dresher & Albert William Tucker)

Shapley considers Cooperative Game Theory when discerning various match methods that result in stable matches. In this book, Shapley defines stable matches as no two entities that would prefer one another over their counterparts and recognizes processes to achieve these matches.

2011 Thomas J. SargentConquest of American Inflation jacket

The Conquest of American Inflation

Sargent examines two broad explanations for the behavior of inflation and unemployment in this period: the natural-rate hypothesis joined to the Lucas critique and a more traditional econometric policy evaluation modified to include adaptive expectations and learning. His purpose is not only to determine which is the better account, but also to codify for the benefit of the next generation the economic forces that cause inflation.

2010 Peter DiamondBehavioral Economics and Its Applications

Behavioral Economics and Its Applications (Edited with Hannu Vartiainen)

In this volume, some of the world’s leading thinkers in behavioral economics and general economic theory make the case for a much greater use of behavioral ideas in six fields where these ideas have already proved useful but have not yet been fully incorporated–public economics, development, law and economics, health, wage determination, and organizational economics. The result is an attempt to set the agenda of an important development in economics.

Understanding Institutional Diversity jacket

2009 Elinor Ostrom

Understanding Institutional Diversity

Concentrating primarily on the rules aspect of the IAD framework, this book provides empirical evidence about the diversity of rules, the calculation process used by participants in changing rules, and the design principles that characterize robust, self-organized resource governance institutions.

Mass Flourishing jacket2006 Edmund S. Phelps

Mass Flourishing

Phelps argues that the modern values underlying the modern economy are under threat by a resurgence of traditional, corporatist values that put the community and state over the individual. The ultimate fate of modern values is now the most pressing question for the West: will Western nations recommit themselves to modernity, grassroots dynamism, indigenous innovation, and widespread personal fulfillment, or will we go on with a narrowed innovation that limits flourishing to a few?

2005 Robert J. Aumann

Values of Non-Atomic Games

This book extends the value concept to certain classes of non-atomic games, which are infinite-person games in which no individual player has significance. It is primarily a book of mathematics—a study of non-additive set functions and associated linear operators.

Anticipating Correlations jacket2003 Robert F. Engle III

Anticipating Correlations:A New Paradigm for Risk Management

Engle demonstrates the role of correlations in financial decision making, and addresses the economic underpinnings and theoretical properties of correlations and their relation to other measures of dependence.

Clive W.J. Granger

Spectral Analysis of Economic Time Series (PSME-1) (with Michio Hatanaka)

Spectral Analysis of Economic Time Series expands and implements on innovative statistical methods based on Granger’s differentiating process, “cointegration”. Granger analyzes and compares short-term alterations with long-term patterns.

Identity Economics jacket2001 George A. Akerlof

Identity Economics: How Our Identities Shape Our Work, Wages, and Well-Being (with Rachel E. Kranton)

Identity Economics provides an important and compelling new way to understand human behavior, revealing how our identities–and not just economic incentives–influence our decisions.The authors explain how our conception of who we are and who we want to be may shape our economic lives more than any other factor, affecting how hard we work, and how we learn, spend, and save.

Lectures on Public Economics jacket2001 Joseph Stiglit

Lectures on Public Economics (with Anthony B. Atkinson)

The lectures presented here examine the behavioral responses of households and firms to tax changes. The book then delves into normative questions such as the design of tax systems, optimal taxation, public sector pricing, and public goods, including local public goods.

Anat Admati on the stark reality of post-2008 banking

Admati-BankersNewClothes_pbkThere are a few lessons still unlearned from the 2008 financial recession, according to Anat Admati, co-author of The Banker’s New Clothes: What’s Wrong with Banking and What to Do about it. “After such a major trauma, we want to believe all is well again,” Admati wrote in her Bloomberg piece on Monday. “But the reality in banking is different and stark.”

Admati turns her attention to former chair of the Federal Reserve, Ben Bernanke’s new book, The Courage to Act. While she applauds Bernanke for appreciating the significance of “equity capital in protecting the economy from financial shocks”, she is skeptical of the supposed progress resulting from regulations implemented by the Federal Reserve post-2008. Admati writes in Bloomberg:

A clear lesson is that banks need much more capital, specifically in the form of equity. In this area, the reforms engendered by the crisis have fallen far short. Regulators focus on “risk-weighted” and accounting-based capital ratios that, among their many flaws, rely on banks to assess the riskiness of their assets. Using off-balance-sheet accounting, derivatives and other tools, banks have become adept at manipulating these ratios. Annual stress tests aren’t much better: They employ the same flawed measures and cannot reliably predict how an actual crisis, which may come from an unexpected direction, would play out in an opaque and interconnected financial system.

Admati argues that a larger amount of equity given to banks would offer substantial benefits to society with minimal costs, halting the precarious practice of creditors allowing the largest banks in the world to borrow money under the assumption of government intervention in dire situations.

Read the rest of Admati’s analysis here .

Anat Admati is the George G. C. Parker Professor of Finance and Economics at Stanford’s Graduate School of Business.

Introducing the new video trailer for PHISHING FOR PHOOLS by Robert Shiller & George Akerlof

Phishing for Phools jacketDo you have a weakness? Of course you do. Which means, according to Nobel Prize-winning economists George Akerlof and Robert Shiller, you have probably been “phished” for a “phool.”

We tend to think of phishing as the invisible malevolence that led our grandparents to wire money to Nigeria, or inspired us to click on a Valentine’s day link that promised, “someone loves you,” and then promptly crashed our hard drive. But more generally understood, “phishing” is inseparable from the market economy of everyday life. As long as there is profit to be made, psychological weaknesses will be exploited. For example, overly optimistic information results in false conclusions and untenable purchases in houses and cars. Health clubs offer overpriced contracts to well-intentioned, but not terribly athletic athletes. Credit cards feed dramatic levels of debt. And phishing occurs in financial markets as well: Think of the legacy of mischief at work in the financial crises from accounting fraud through junk bonds and the marketing of derivatives.

Ever since Adam Smith, the central teaching of economics has been that the invisible hand of free markets provides us with material well-being. In Phishing for Phools, Akerlof and Shiller challenge this insight, arguing that markets are far from being essentially benign and don’t always create the greater good. In fact, markets are inherently filled with tricks and traps.

We are thrilled to introduce this new video trailer in which Robert Shiller talks about his new book with George Akerlof, Phishing for Phools:


What are Wall Street’s smartest people reading? Lasse Pedersen’s EFFICIENTLY INEFFICIENT

Pedersen jacketLasse Pedersen’s new book, Efficiently Inefficient, a look at the key trading strategies used by hedge funds, just made two lists of top investment books. The Wall Street Journal included it in a list of “the books Wall Street’s smartest people think you should read this summer”, where it was recommended by Torsten Slok, ‎chief international economist at Deutsche Bank. ETF.com also gave the book a shout out, naming it one of the “must read books for serious investors”.

Lasse Pedersen, a finance professor at Copenhagen Business School and New York University’s Stern School of Business, and a principal at AQR Capital Management, is determined to show how markets really work in a world where they are neither perfectly efficient nor completely inefficient. So what exactly does he mean by the contradiction in terms “efficiently inefficient”? From ETF.com:

Imperfectly Efficient

Regarding the book’s title, Pedersen explains: “Markets cannot be perfectly efficient and always reflect all information. If they were perfect, no one would have any incentive to collect information and trade on it, and then how could markets become efficient in the first place? Markets also cannot be so inefficient that making money is very easy because, in that case, hedge funds and other active investors would have an incentive to trade more and more.”

Efficiently Inefficient includes an array of interviews with leading hedge fund managers, including Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros. Free problem sets are available online on Pedersen’s website. The introduction is available for download here.

George Akerlof and Robert Shiller pose with their new book jacket

Nobel Prize winners Robert Shiller and George Akerlof got the chance to pose with the phenomenal cover for their forthcoming book, Phishing for Phools, the lead title on our Fall 2015 list (stay tuned for the posting of our new seasonal catalog!)  The drawing on the cover is an original by New Yorker cartoonist Edward Koren, and the jacket design is by our own Jason Alejandro. You can catch George talking about the book, which is a fascinating look at the central role of manipulation in economics, at this lecture at Duke University.

Akerloff and Shiller


Noam Wasserman Named Finalist for 2013 George R. Terry Book Award

Noam Wasserman – The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup
Finalist for the 2013 George R. Terry Book Award, Academy of Management

The George R. Terry Book Award is granted annually to the book judged to have made the most outstanding contribution to the advancement of management knowledge. Books recognized for this award have been published during the previous two years and have made a significant impact on management theory, conceptualization, research or practice.

For more information and announcements about finalists and winners, click here.

The Founder's DilemmasOften downplayed in the excitement of starting up a new business venture is one of the most important decisions entrepreneurs will face: should they go it alone, or bring in cofounders, hires, and investors to help build the business? More than just financial rewards are at stake. Friendships and relationships can suffer. Bad decisions at the inception of a promising venture lay the foundations for its eventual ruin. The Founder’s Dilemmas is the first book to examine the early decisions by entrepreneurs that can make or break a startup and its team.

Drawing on a decade of research, Noam Wasserman reveals the common pitfalls founders face and how to avoid them. He looks at whether it is a good idea to cofound with friends or relatives, how and when to split the equity within the founding team, and how to recognize when a successful founder-CEO should exit or be fired. Wasserman explains how to anticipate, avoid, or recover from disastrous mistakes that can splinter a founding team, strip founders of control, and leave founders without a financial payoff for their hard work and innovative ideas. He highlights the need at each step to strike a careful balance between controlling the startup and attracting the best resources to grow it, and demonstrates why the easy short-term choice is often the most perilous in the long term.

The Founder’s Dilemmas draws on the inside stories of founders like Evan Williams of Twitter and Tim Westergren of Pandora, while mining quantitative data on almost ten thousand founders.

People problems are the leading cause of failure in startups; The Founder’s Dilemmas offers solutions no entrepreneur can afford to ignore.

Noam Wasserman is an associate professor at Harvard Business School.

New Economics and Finance Catalog!

We invite you to browse and download our new economics and finance catalog!

Of particular interest are some of our forthcoming titles including Benn Steil’s remarkable The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order, Ben S. Bernanke’s insightful The Federal Reserve and the Financial Crisis, and Anat Admati and Martin Hellwig’s engaging and accessible The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It. Also note Justin Yifu Lin’s The Quest for Prosperity: How Developing Economies Can Take Off. Interwoven with insights, observations, and stories from Lin’s travels as chief economist of the World Bank and his reflections on China’s rise, this book provides a road map and hope for those countries engaged in their own quest for prosperity.

Our catalog also exhibits critical textbooks including David M. Kreps’ rigorous Microeconomic Foundations I: Choice and Competitive Markets, Steven Tadelis’ comprehensive Game Theory: An Introduction, Ariel Rubinstein’s essential second edition Lecture Notes in Microeconomic Theory: The Economic Agent, and Michael Wickens’ superior second edition Macroeconomic Theory: A Dynamic General Equilibrium Approach.

If you’re interested in hearing more about our economics and finance titles, sign up with ease here: http://press.princeton.edu/subscribe/ Your email address will remain confidential!

We’ll see everyone at the meeting of the Allied Social Science Associations January 4-6 in San Diego, CA. Come visit us at booth 308! Be sure to stop by Saturday, January 5 at 1:00 p.m. for a book signing with Justin Yifu Lin, author of The Quest for Prosperity: How Developing Economies Can Take Off.

New and Forthcoming Titles in Economics and Finance

catalog coverAre you at the annual Allied Social Science Associations meeting in Denver this week?  We invite you to check out our new line-up of titles.  You can now find our new 2011 Economics and Finance catalog online at:


You will find books by Raghuram G. Rajan, Max H. Bazerman & Ann E. Tenbrunsel, John Quiggin, Kaushik Basu and Diane Coyle, just to name a few.  And if you’re at ASSA on Saturday, we hope to see you at the Popular Economics panel discussion moderated by Princeton University Press’s Director, Peter J. Dougherty.

Popular Economics Panel with:

Robert Shiller (Yale University)
Robert Frank (Cornell University)
Diane Coyle (Manchester University)
Steve Levitt (University of Chicago)
Panel Moderator: Peter Dougherty (Princeton University Press)

Jan 08, 2011 8:00 a.m., Sheraton, Governor’s Square 15

Stop by and visit booth no. 311 to say hello and browse the books.  We look forward to seeing you there. For a free e-mail notification about new titles in Economics and Finance, sign up at: