Intermediate Microeconomics: A Modern Approach – Media Update Paperback – 17 May 2019

Hal Varian’s ‘Intermediate Microeconomics’ presents an extensive construction of elegant mathematical formulae and models which neither derive from, nor refer to, the real economy. Karl Popper’s scientific methodology was to observe phenomena, propose explanatory hypotheses, and test their implications empirically. Alternatively, Thomas Kuhn offered a theory of paradigm change. Varian follows neither of these methodologies, disqualifying his presentation of economics as science.His plethora of conceptual tools from consumer indifference curves and budget constraints, to producer profit maximisation, marginal factor productivity, isoquants et al, neither describe nor explain real world consumers and firms. Varian offers a mythical world of marginalist mathematical economics which generates toy models with no relevance to economic theory or policy. His approach is entirely theory led.Real microeconomics addresses the behaviour of consumers and producers in real markets in real industry sectors. Mathematical modelling is a useful tool in such theorising and research, but not as an end in itself, which is what it sadly has become in current academic ‘mainstream’ microeconomics exemplified by Varian’s book. It’s very surprising to find this as the introductory reader to undergraduate economics courses, for example, at Cambridge university, UK.