Nelson Higher Education

Higher Education

Macroeconomics: Private and Public Choice, 16th Edition

  • James D. Gwartney
  • Richard L. Stroup
  • Russell S. Sobel
  • David A. Macpherson
  • ISBN-10: 1305506758
  • ISBN-13: 9781305506756
  • 539 Pages | Paperback
  • Previous Editions: 2015, 2013, 2011
  • COPYRIGHT: 2018 Published
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About the Product

Prepare students to apply macroeconomic concepts to the world around them as MACROECONOMICS: PRIVATE AND PUBLIC CHOICE, 16E reflects current economic conditions. This readable book integrates public choice analysis and explains the operation of markets and the political process as well as market failure and government failure. The book emphasizes why it is vital to understand both the market and political processes since approximately 40 percent of national income is allocated through the political process. Up-to-date coverage presents major current macroeconomic models and stresses the difficulties models face in explaining recent economic data. Students analyze the Great Recession of 2008-2009. This book dispels common economic myths and uses the "invisible hand" metaphor to explain economic theory. This edition includes Aplia online with revised questions, accessibility on mobile devices, improved graphing, and a new interactive eReader with videos and graphing tutorials.


  • IN-DEPTH ANALYSIS REVIEWS THE GOVERNMENT RESPONSE TO THE FINANCIAL CRISIS. This edition discusses both the political economy and federal budget implications.

  • SECTION HIGHLIGHTS ECONOMIC THINKING ABOUT GOVERNMENT. Students view today’s government involvement and decisions from a unique economic perspective using the latest information as well as historic data on the Great Recession and lessons learned from the Great Depression.

  • STUDENTS LEARN TO EVALUATE MEASURES OF ECONOMIC ACTIVITY. Students examine issues, such as the unemployment rate, and dig into its meaning and relevance.

  • COMPREHENSIVE ANALYSIS OF INTERNATIONAL TRADE EXAMINES ITS IMPACT. Students carefully review the influence of international trade on growth and the prosperity of nations today.

  • PRACTICAL APPROACH APPLIES ECONOMIC THEORY TO CURRENT ISSUES AND CONTROVERSIES. Students see the relevance of the theories they are learning as they apply what they learn directly to pertinent topics in the world around them.

  • HISTORICAL VIGNETTES HIGHLIGHT THE LIVES OF NOTABLE ECONOMISTS. This meaningful feature provides an opportunity to weave economic history into your classroom.

About the Author

James D. Gwartney

James D. Gwartney holds the Gus A. Stavros Eminent Scholar Chair at Florida State University. His writings have been widely published in both professional journals and popular media. He is a co-author of COMMON SENSE ECONOMICS: WHAT EVERYONE SHOULD KNOW ABOUT WEALTH AND PROSPERITY, a primer on economics and personal finance. Dr. Gwartney’s current research focuses on the measurement and determination of factors that influence cross-country differences in income levels and growth rates. Using this research, he is the co-author (with Robert Lawson, Joshua Hall, and Ryan Murphy) of the annual report, Economic Freedom of the World, which provides information on the institutions and policies of 162 countries. This data set, published by a worldwide network of institutes in 90 countries, is widely used by scholars investigating topics ranging from economic growth to peaceful relations among nations. Dr. Gwartney served as chief economist of the Joint Economic Committee of the U.S. Congress during 1999-2000. In 2004, he received the Adam Smith Award of the Association of Private Enterprise Education for his contributions to the advancement of free market ideals. He is a past president of both the Southern Economic Association and the Association for Private Enterprise Education. He earned his Ph.D. in economics from the University of Washington.

Richard L. Stroup

Richard L. Stroup is professor emeritus of economics at Montana State University and professor emeritus of economics at North Carolina State University. He earned his Ph.D. from the University of Washington. From 1982 to 1984, Dr. Stroup served as director of the Office of Policy Analysis at the U.S. Department of the Interior. He has published and lectured on topics such as global warming, land use regulation, archaeology and environmental policy improvements. His research has helped to develop the approach known as free market environmentalism. Dr. Stroup co-authored COMMON SENSE ECONOMICS: WHAT EVERYONE SHOULD KNOW ABOUT WEALTH AND PROSPERITY with Dr. Gwartney. In addition, he has published ECONOMICS: WHAT EVERYONE SHOULD KNOW ABOUT ECONOMICS AND THE ENVIRONMENT, which was sponsored by the Property and Environment Research Center, which he co-founded.

Russell S. Sobel

Russell S. Sobel is professor of economics and entrepreneurship in the Baker School of Business at The Citadel in Dr. Sobel's hometown of Charleston, South Carolina. Dr. Sobel received his Ph.D. in economics from Florida State University in 1994. He serves as co-editor of the Southern Economic Journal and is a member of the editorial boards for the peer-reviewed journal Public Choice and the Journal of Entrepreneurship & Public Policy. Dr. Sobel has received numerous awards for both his teaching and research, including the Kenneth G. Elzinga Distinguished Teaching Award from the Southern Economic Association, the Georgescu-Roegen Prize for Best Article of the Year in the Southern Economic Journal and the Association of Private Enterprise Education Distinguished Scholar Award. In addition, he received the Sir Antony Fisher International Memorial Award for his book UNLEASHING CAPITALISM. He is the author or co-author of more than 250 academic journal articles and books. His publications have appeared in a wide variety of academic journals including the Journal of Political Economy, Journal of Law and Economics, Public Choice, Journal of Business Venturing, Small Business Economics and Economic Inquiry. His current recent research focuses on the intersection of entrepreneurship and economic policy.

David A. Macpherson

David A. Macpherson is the E.M. Stevens Distinguished Professor of Economics and economics department chair at Trinity University. Previously, he served as director of the Pepper Institute on Aging and Public Policy and was the Rod and Hope Brim Eminent Scholar of Economics at Florida State University, where he received two university-wide awards for teaching excellence. He has taught courses on the principles of microeconomics, money and banking, econometrics and labor economics. Dr. Macpherson is an applied economist whose research focuses on real estate, pensions, discrimination, industry deregulation, labor unions and the minimum wage. He has published more than 60 articles in leading economics and real estate journals, including Review of Economic and Statistics, Journal of Labor Economics, Journal of Human Resources, Industrial and Labor Relations Review and Journal of Real Estate Economics and Finance. His research has been funded by a variety of entities, including the National Science Foundation, Florida Legislature and the National Association of Realtors. He is co-author of the undergraduate labor economics text, CONTEMPORARY LABOR ECONOMICS. Dr. Macpherson is included in WHO’S WHO IN ECONOMICS, which features the 1,200 most frequently cited economists. Dr. Macpherson received his undergraduate degree and Ph.D. from Pennsylvania State University.

Table of Contents

1. The Economic Approach.
2. Some Tools of the Economist.
3. Demand, Supply, and the Market Process.
4. Supply and Demand: Applications and Extensions.
5. Difficult Cases for the Market, and the Role of Government.
6. The Economics of Political Action.
7. Taking the Nation’s Economic Pulse.
8. Economic Fluctuations, Unemployment, and Inflation.
9. An Introduction to Basic Macroeconomic Markets.
10. Dynamic Change, Economic Fluctuations, and the AD--AS Model.
11. Fiscal Policy: The Keynesian View and the Historical Development of Macroeconomics.
12. Fiscal Policy: Incentives, and Secondary Effects.
13. Money and the Banking System.
14. Modern Macroeconomics and Monetary Policy.
15. Stabilization Policy, Output, and Employment.
16. Creating an Environment for Growth and Prosperity.
17. Institutions, Policies, and Cross-Country Differences in Income and Growth.
18. Gaining from International Trade.
19. International Finance and the Foreign Exchange Market.
Special Topic 1. Government Spending and Taxation.
Special Topic 2. The Economics of Social Security.
Special Topic 3. The Stock Market: Its Function, Performance, and Potential as an Investment Opportunity.
Special Topic 4. Great Debates in Economics: Keynes versus Hayek.
Special Topic 5. The Crisis of 2008: Causes and Lessons for the Future.
Special Topic 6. Lessons from the Great Depression.
Special Topic 7. The Federal Budget and the National Debt.
Appendix A:. General Business and Economics Indicators for the United States.
Appendix B: Answers to Selected Critical Analysis Questions.

New to this edition

  • NEW "KEYS TO ECONOMIC PROSPERITY" FEATURES DIRECT READER FOCUS TO CRITICAL MACROECONOMIC FACTORS. This feature helps students fully appreciate the organizational and institutional factors that form the foundations for economic progress. These "Keys to Economic Prosperity" features highlight the importance of factors, such as gains from trade, secure property rights, competition, and free trade, as sources of economic prosperity
  • NEW "APPLICATIONS IN ECONOMICS" APPLY MACROECONOMIC THEORY TO REAL-WORLD ISSUES AND CONTROVERSIES. These features illustrate the importance and power of the macroeconomic principles addressed in the book.
  • NEW "MEASURES OF ECONOMIC ACTIVITY" BOXES EXAMINE SIGNIFICANT MACROECONOMIC INDICATORS. These boxes detail how important economic indicators, such as the unemployment rate and the index of leading indicators, are assembled and what they mean.
  • NEW "OUTSTANDING ECONOMISTS" BOXES INTRODUCE LEADERS WHO HAVE SHAPED ECONOMICS TODAY. These features integrated throughout this edition highlight the lives of major economists and focus on how their work has contributed to the development of economics and macroeconomics.
  • NEW "MYTHS OF ECONOMICS" ARTICLES CORRECT COMMON ECONOMIC FALLACIES. These boxed articles dispel commonly held fallacies of macroeconomic reasoning. Because students are tomorrow’s leaders, it is imperative that they are aware of common economic misperceptions that can hamper a nation’s economic progress.
  • CHAPTER FOCUS QUESTIONS AND CLOSING KEY POINT SUMMARIES. Each chapter begins with four or five questions that summarize the focus of the chapter. At the end of each chapter, the Key Points section provides students with a concise overview of the material covered in the chapter and revisits the chapter learning objectives. These two features help students better integrate the material into a broader macroeconomic picture.
  • NEW CRITICAL ANALYSIS QUESTIONS CHALLENGE STUDENTS TO APPLY WHAT THEY’VE LEARNED. Each chapter concludes with a set of discussion questions and problems designed to test the student’s ability to analyze macroeconomic issues and to apply macroeconomic theory to real-world events. Appendix B at the end of the text contains suggested answers for approximately half of these questions.
  • UPDATED TABLES, GRAPHS, AND ECONOMIC APPLICATION BOXED FEATURES REFLECT THE LATEST DEVELOPMENTS IN THE FIELD. These visual reinforcements and opportunities for practical application throughout the book have been thoroughly updated to ensure your students are working with the latest information.
  • EXPANDED COVERAGE HIGHLIGHTS THE ROLE OF POLITICAL ACTION IN MACROECONOMICS TODAY. With approximately 40 percent of national income allocated through the political process, this book now clearly demonstrates the significant impact today’s political decisions have on current and future macroeconomic developments.
  • COMPREHENSIVE ANALYSIS REVIEWS THE PROLONGED LOW INTEREST RATES OF THE PAST DECADE. Students closely examine the factors that influence interest rates and examine why rates have remained consistently low throughout the past 10 years.
  • NEW COVERAGE EXAMINES THE IMPACT OF INFORMATION TECHNOLOGY ON MACROECONOMICS TODAY. Readers review the influences and use of contemporary technology and its effect on GDP as a measure of economic well-being.
  • TIMELY MATERIAL COMPARES COST OF LIVING DIFFERENCES. Students examine how cost of living differences across cities and states affect real earnings.
  • UPDATES ASSESS CONTEMPORARY CHANGES IN FEDERAL RESERVE POLICY. Readers study how the Federal Reserve Policy has been modified in the aftermath of the financial crisis of 2008-2009.
  • REVISED MATERIAL ANALYZES MINIMUM WAGE. Readers review the impact of minimum wage, including increases at the city level.


All supplements have been updated in coordination with the Main title.
Please see Main title page for new to this edition information.

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