Economics

For the undergraduate level.

How to use this guide

• Do as many problems as you can!
• Keep math slightly ahead. Calculus for optimization, statistics for econometrics, linear algebra/analysis for advanced theory.
• Each section gives a primary text and alternatives. The primary text is usually enough.

Part 0: Mathematical Toolkit

Calculus

Needed before: intermediate theory.
Learn: multivariable calculus, especially constrained optimization/Lagrange multipliers.
Primary: James Stewart, Calculus, or any standard calculus text.

Mathematics for Economists

Use for: consolidated math in economic context.
Learn: multivariable calculus, linear algebra, optimization, intro analysis.
Primary: Carl Simon & Lawrence Blume, Mathematics for Economists.
Alternative: Alpha Chiang & Kevin Wainwright, Fundamental Methods of Mathematical Economics.

Probability and Statistics

Needed before: econometrics.
Learn: probability, random variables, distributions, expectation, sampling, estimation, hypothesis testing, regression.
Primary: Larsen & Marx, An Introduction to Mathematical Statistics and Its Applications, or the review chapters in Stock & Watson.

Real Analysis

Needed before: graduate-level micro.
Learn: proof-based analysis. Skip unless preparing for advanced/PhD work.
Primary: Stephen Abbott, Understanding Analysis, or Walter Rudin, Principles of Mathematical Analysis.

Part 1: Principles

Purpose: one non-calculus pass over the whole subject.
Learn: supply/demand, elasticity, market structure, externalities, GDP, unemployment, inflation, money, fiscal/monetary policy, trade.
Primary: N. Gregory Mankiw, Principles of Economics.
Alternative: Krugman & Wells, Economics.
Free modern option: CORE Econ, The Economy.

Part 2: Core

Intermediate Microeconomics

Build on: principles, calculus.
Learn: consumer theory, producer theory, markets/welfare, monopoly/oligopoly, game theory, externalities, public goods, asymmetric information, intro general equilibrium.
Primary: Hal Varian, Intermediate Microeconomics: A Modern Approach, use Intermediate Microeconomics with Calculus if ready.
Alternative: Goolsbee, Levitt & Syverson, Microeconomics.

Intermediate Macroeconomics

Build on: principles, calculus.
Learn: national income, growth, labor/unemployment, money/inflation, IS-LM/AD-AS, consumption, investment, open economy, fiscal/monetary policy.
Primary: N. Gregory Mankiw, Macroeconomics.
Alternatives: Olivier Blanchard, Macroeconomics, Charles Jones, Macroeconomics.

Econometrics

Build on: probability/statistics, calculus.
Learn: OLS, inference, multiple regression, omitted-variable bias, heteroskedasticity, IV, panels, binary outcomes, causal inference.
Primary: James Stock & Mark Watson, Introduction to Econometrics.
Alternative: Jeffrey Wooldridge, Introductory Econometrics: A Modern Approach.

Part 3: Advanced / Graduate Preparation

Advanced Microeconomic Theory

Build on: intermediate micro, linear algebra, optimization, real analysis.
Learn: choice theory, duality, general equilibrium, welfare, social choice, game theory, information economics, mechanism design.
Primary: Geoffrey Jehle & Philip Reny, Advanced Microeconomic Theory.
Alternatives: Hal Varian, Microeconomic Analysis, Mas-Colell, Whinston & Green, Microeconomic Theory.

Advanced Macroeconomics

Build on: intermediate macro, calculus, dynamic optimization.
Learn: Solow/Ramsey growth, OLG, endogenous growth, RBC, New Keynesian models, consumption, investment, unemployment, policy in dynamic models.
Primary: David Romer, Advanced Macroeconomics.
Next: Daron Acemoglu, Introduction to Modern Economic Growth, Ljungqvist & Sargent, Recursive Macroeconomic Theory.

Advanced Econometrics

Build on: econometrics, linear algebra, probability.
Learn: matrix linear model, asymptotics, GMM, maximum likelihood, panels, IV/GMM, limited dependent variables, time series.
Primary: Fumio Hayashi, Econometrics.
Applied micro: Jeffrey Wooldridge, Econometric Analysis of Cross Section and Panel Data.
Reference: William Greene, Econometric Analysis.

Game Theory

Build on: intermediate micro.
Learn: strategic/extensive games, Nash equilibrium, subgame perfection, repeated games, Bayesian games, bargaining, auctions.
Primary: Robert Gibbons, Game Theory for Applied Economists.
Alternative: Martin Osborne, An Introduction to Game Theory.
Graduate: Fudenberg & Tirole, Game Theory, Osborne & Rubinstein, A Course in Game Theory.

Part 4: Fields

Industrial Organization

Focus: firms, market power, competition, regulation.
Primary: Luís Cabral, Introduction to Industrial Organization.
Graduate: Jean Tirole, The Theory of Industrial Organization.

Public Economics

Focus: taxation, spending, externalities, government policy.
Primary: Jonathan Gruber, Public Finance and Public Policy.

Labor Economics

Focus: wages, employment, human capital, immigration, inequality.
Primary: George Borjas, Labor Economics.

International Economics

Focus: trade, policy, exchange rates, open-economy macro.
Primary: Krugman, Obstfeld & Melitz, International Economics: Theory and Policy.
Alternative: Feenstra & Taylor, International Economics.

Economic Development

Focus: growth, poverty, institutions, poor countries.
Primary: Debraj Ray, Development Economics.
Modern experimental angle: Banerjee & Duflo, Poor Economics.

Monetary Economics / Money and Banking

Focus: money, central banking, financial intermediation, monetary policy.
Primary: Frederic Mishkin, The Economics of Money, Banking, and Financial Markets.
Graduate: Carl Walsh, Monetary Theory and Policy.

Financial Economics and Corporate Finance

Focus: asset pricing, portfolios, capital structure, corporate decisions.
Corporate: Berk & DeMarzo, Corporate Finance, Brealey, Myers & Allen, Principles of Corporate Finance.
Investments: Bodie, Kane & Marcus, Investments.
Graduate asset pricing: John Cochrane, Asset Pricing.

Behavioral Economics

Focus: systematic departures from rational-agent models.
Primary: Erik Angner, A Course in Behavioral Economics.
Popular: Richard Thaler, Misbehaving, Daniel Kahneman, Thinking, Fast and Slow.

History of Economic Thought

Focus: development of economic ideas.
Primary: Robert Heilbroner, The Worldly Philosophers.
Then read: Adam Smith, The Wealth of Nations, John Maynard Keynes, The General Theory.

Part 5: Empirical Practice

Causal Inference

Learn: randomized experiments, IV, regression discontinuity, difference-in-differences.
Primary: Angrist & Pischke, Mastering 'Metrics, then Mostly Harmless Econometrics.
Free alternatives: Scott Cunningham, Causal Inference: The Mixtape, Nick Huntington-Klein, The Effect.

Statistical Software

Learn one: R or Stata. Use real datasets and replicate empirical exercises. Ideally, also Python.

Suggested Order

1. Principles + single- and multivariable calculus/optimization + probability/statistics.
2. Intermediate Microeconomics.
3. Intermediate Macroeconomics.
4. Econometrics + causal inference + R/Stata.
5. Two or three fields.
6. If preparing for graduate work: linear algebra + real analysis, then advanced micro/macro/econometrics/game theory.