Updates and Typos
This page maintains a list of errata for the printed book.
p. 30: The first rule should be ln(xy) = y ln x, i.e., x to the y power, not simply ln(xy) as it is in the book.
p. 179: The m1 term in the constraint is missing a (1 - TaxBreak), so it should be: (1 - TaxBreak)BeneficiaryCon + p2DonorCon <= (1 - TaxBreak)m1 + m2
I corrected this equation in the Excel workbook.
p. 311: I switched the key relationship between average and marginal cost. The book says, "Whenever an average curve is above the marginal curve, the marginal curve
must be rising. Conversely, whenever the average is below marginal, the marginal must be falling." That is not right. Here is the correct statement:
Whenever a marginal curve is above an average curve, the average curve
must be rising. Conversely, whenever the marginal is below the
average, the average must be falling.
p. 458: "Although the red triangle that represents the deadweight loss is shorter (because the new equilibrium price is lower than before), it is much wider." The latter part is true, the triangle is wider because quantity falls by more when D is more elastic, but the the height of the triangle remains the same. The height is the amount of the tax and it is constant.
Although I am not tracking and updating web addresses in the book, the excellent History of Economic Thought web site mentioned three times has a new URL:
p. 143 and p. 540: homepage.newschool.edu/het/ is now at homepage.newschool.edu/~het/
p. 471: homepage.newschool.edu/het/profiles/schump.htm is now at homepage.newschool.edu/~het/profiles/schump.htm
Last Update: 26 Apr 2011