Harvard economics professor Greg Mankiw, who has become a multi-millionaire by writing and honing his very successful economics textbooks, has written a thoughtful article titled “Reflections of a Textbook Author.” I highly recommend the article, even to people who have no intention of ever writing a textbook. You get to see the considerations that led him to frame the issues the way he did. I agree with a large percent of his choices. I do have some of his criticisms of his textbook and I have written about the main ones here, here, and here.
I can’t do justice to the whole article (26 pages double-spaced, but interesting on every page), but I will give some highlights.
On how the writer should deal with “the profession’s views” when his or her own views differ:
I have always thought that instructors, especially in introductory courses, are like ambassadors for the economics profession. The role of ambassadors is not to represent their own views but to act as agents for their principal. Just as ambassadors are supposed to faithfully represent the perspective of their nations, the instructor in an introductory course (and intermediate courses as well) should faithfully represent the views shared by the majority of professional economists.
This is why I wouldn’t, by Greg’s criterion, be a good textbook writer. And not just by Greg’s criterion, but also by the market’s criterion: My text wouldn’t sell well.
Here’s how I handled these issues in my teaching.
On many issues I agree with the bulk of the profession: effects of rent control, the harm done by restrictions on trade, and the fact that cuts in tax rates will not generally, all else equal, increase government revenue, to name three. I highlight these because they are the three that Greg mentions. Dealing with those was easy.
On the effects of the minimum wage, like Greg, I laid out the basic economics showing why we would expect employment of unskilled labor to fall and then laid out why some economists think it wouldn’t fall much. But Greg goes further. He writes, “I try my best to present both sides fairly, and I avoid revealing my own views (though I am surely imperfect in this endeavor).” I do try my best to present both sides fairly but I don’t (forgive the present tense: I still feel like a professor) even try to avoid revealing my own views. My motivation to be a teacher would have been much less if I purposely suppressed my own views. I think the key is to make clear that the students won’t be penalized for disagreeing. So, for example, if a student on a test wanted to lay out the monopsony model of the labor market to show why he/she thinks a minimum wage might actually increase employment, if the student did it right, with all the right lines, or even just talked through the analysis without a graph, that student would get a 10 out of 10.
On instructor as ambassador:
This perspective of instructor as ambassador raises the question of what instructors should do if they hold views far from the mainstream of the economics profession. If you are an Austrian or Marxist economist, for example, what should you do if asked to teach an introductory course? In my view, there are only two responsible courses of action. One is to sublimate your own views and spend most of the course teaching what the mainstream believes, even if you disagree with it. Because many introductory students will take only one or two courses in economics throughout their educations, it would be pedagogical malpractice, in my judgment, to focus on an idiosyncratic minority viewpoint.
I actually agree with that. Of course, I was not an Austrian or a Marxist and so that was easy. You know who else probably would have agreed with Greg? That noted Austrian economist Murray Rothbard. I remember running into Murray at a conference (this was before he denounced me for being in the Reagan administration) in the late 1970s and we were comparing notes on textbooks. “What do you use for a micro text?” he asked. I don’t even remember my answer: I think it was Edwin Mansfield’s Micro textbook. (I was teaching a micro course to MBAs at the University of Rochester.) But what I found striking was that Murray was looking around for mainstream texts that would work for his students at Brooklyn Polytechnic Institute.
There’s much more in the piece: (1) why he puts micro before macro, (2) why he gives such prominence to growth, and (3) why in the short-run macro part, he uses Aggregate Supply and Aggregate Demand rather than the Keynesian cross. These are three of the biggest decisions and I think he got all three right.
Less is more:
For many years, Otto Eckstein ran the introductory course at Harvard. Unfortunately, I never met him as he passed away just before I joined the faculty. But I have heard one of his aphorisms. Apparently, Otto often told section leaders, “The less you teach them, the more they learn.” What I believe he meant by this is that instructors should avoid overwhelming introductory students with too much information all at once.
Ten big principles of economics:
The first chapter of my introductory textbook introduces ten big principles of economics. They are aimed at the student who has never studied economics before. The goal is to give a brief and understandable introduction to the field, a general sense of where we are heading, and a foundation for the material to come.
I do the same. I call mine “The Ten Pillars of Economic Wisdom.”
Near the end, Greg has two quite interesting sections: (1) how the price of textbooks hasn’t risen as much as you might have thought–and he connects this with why changes in the Consumer Price Index overstate inflation, and (2) his section on how to think about whether to become a textbook writer.
READER COMMENTS
Jon Murphy
Mar 11 2019 at 9:57pm
This is good stuff.
I agree wholeheartedly with your comments about personal opinion in the classroom. I wear my opinions on my sleeve (as a Coasian-Beckerian-Stiglierian-Smithian-Boudreauxian-Demsetzian-Achianian-Buchananian-economist with Austrian sympathies), but I always tried avoiding preaching. Every class, I like to begin with a 5 minute AMA (ask me anything) period. Once the students found out almost nothing was off the table, they would probe me on my personal opinions on various things. It’s great fun.
Well, last semester I was teaching International Economic Policy (a trade class aimed at public policy majors). There was one kid who was left of Bernie Sanders in that class. He was always polite and asked good, challenging questions in class (not the whole “why don’t you care about poor people” kind but rather “My concern is X. How would you address that?”). He really excelled in the class and his final paper was brilliant. A very well-reasoned defense of Sanders-style economic socialism and protectionism. He got a perfect score. It was great having him in class to set an example: both as an example that it is fine to disagree with me and as an example of how to disagree. (As an aside, he asked me for more resources after class on how he could learn about libertarianism from non-crazy and non-biased sources. Of course, I was pleased to provide).
Which I used in my intro classes at the community college. The students reacted extremely well to them.
…
One final note to wrap up this rambling comment:
I thoroughly enjoyed the commentary, both by Mankiw and you, on the instructor as the ambassador. That’s something I’ve wavered on in my classes. I do like to give my students a “Jon Murphy” experience, something unique to reward them for taking the class with me, but I also don’t want to go too far off the beaten path. I’m teaching into Macro for the first time this semester and, for the most part, I am just choking it down and teaching it by the book (I really dislike macro. If I had a magic wand, undergrad econ would be two years of micro and two years of stats/math, with philosophy thrown in, but that’s a rant for another time). I figure the community college hired me to do a job, and this is part of it. I can be weird after tenure 🙂
Scott Sumner
Mar 12 2019 at 12:40pm
I just finished writing a principles textbook, after using Mankiw’s book for many years. I agree with his view that teachers should present the mainstream economics model. It’s fine to sprinkle in a few heterodox ideas of your own, but they should be identified as such.
Phil
Mar 12 2019 at 3:23pm
After publishing a text (in a field other than economics) in 2017, I blocked the notion of a second edition from my thoughts in order to recuperate. Until Greg’s essay. I downloaded it into a newly created folder entitled “2nd ed.”
Some of what he wrote validated my approach (the use of modules and the notion of being an ambassador). Other parts provide important considerations for next time.
In his section on the audience, he implied a vital one that should have been made explicit: the instructor who will craft a syllabus around it.
I especially appreciated his section on what to include. (As a sidebar, it is itself a nice illustration of scarcity.) But I took this passage in a different direction:
An alternative explanation is found in a parallel aphorism: the person who does the learning is the person who did the work. Too much teaching places the burden on the instructor’s shoulders. By focusing on learning, the burden is placed on the students’ where it belongs. Especially at the collegiate and graduate level, teaching should be less about direct instruction (I fill your head) and more about creating conditions for learning (we fill your head).
mike davis
Mar 12 2019 at 3:25pm
Excellent essay and very nice blog post. Thanks to David for bringing it to our attention.
Three thoughts:
First, I agree that we should mostly be ambassadors for the conventional wisdom–with one big exception. The mainstream is way too sure of itself. My textbook would not be Austrian, except on the first page where I would feature a large portrait of Hayek above his famous quote “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”
Second, since the mainstream has become much more empirical over the past generation, is this going to be reflected in introductory textbooks? I think that would be a good thing, especially if we used that as a chance to teach students how to be careful about using data. (See Hayek quote above.)
Third, let’s do the math and then ask a rude question. Greg says he’s sold about 4 million copies. Let’s say that generated $400 million in revenues and so at a 15% royalty rate Greg has made $60 million. If he faced a marginal tax rate of, say, 75%, would he have written the same book, a lower quality book or no book at all? (I ask that question because Greg seems a bit defensive about the pricing of textbooks. I think he makes a really good case suggesting that they are not overpriced. But I don’t really care. Even if he would have done the same work for less pay, my presumption is that people should be paid what the market offers. It doesn’t bother me that an average starting pitcher who makes $10 million a year might work for minimum wage. And so it is definitely ok with me for Mankiw to make $3 million a year.)
David Seltzer
Mar 12 2019 at 4:02pm
Good stuff. When I was on faculty at Loyola of Chicago, I taught Modigliani-Miller, Black-Scholes, Gene Fama’s EMH, and William Sharpe. I taught those courses with great respect for the work of those authors as objectively as possible. The students were engaged enough to ask penetrating questions. When asked if I was a “Chicago School acolyte”, I answered honestly. I was careful to suggest students read critiques of “Chicago” econ and finance. In the civil, free exchange of ideas I learned as well.
Conscience of a Citizen
Mar 12 2019 at 4:48pm
If textbook publishers are not making much profit, that suggests that either textbook sales aren’t very profitable, or someone else is taking (or hiding) the profits (bottleneck distributors? Hollywood accounting?).
It is certainly possible that textbook sales are not very profitable.
The lack of new entrants (to the textbook-publishing business), however, doesn’t prove much. There are many businesses which are profitable (sometimes highly profitable) only when they are small oligopolies or virtual monopolies. Contrary to simplistic models of entrance, investors are often unwilling to fund a new competitor in some market when they estimate that introducing competition will devastate the profits of all the competitors (so including the new one) in that market.*
Be that as it may, one part of Makiw’s remarks about textbook pricing seems a bit forced– prices aren’t really going up so much, Mankiw says, because students are paying the same amount as before but to purchase less of the textbook, only a few chapters which they need for a specific course. I would say that is a price increase– pay-the-same-to-get-less is pretty much equivalent to pay-more-to-get-the-same.
*For a very simple example, consider some lone gasoline retailer in some remote town, infamous for high margins. The same demand inelasticity which keeps the one retailer flush might cause two competing retailers in that town to both go bankrupt, since neither could increase volume much by reducing prices, and serving only half the local demand wouldn’t cover fixed costs. If there were two retailers, survival might force them to consolidate then return to the status-quo-ante monopoly. Of course price-gouging the local inelastic demand would resume.
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