the capital asset pricing model used to determine appropriate prices for assets. Importance: Topic creator, Influence The pricing of options and corporate liabilities Fischer Black and Myron Scholes "The Pricing of Options and Corporate Liabilities" Journal of Political Economy 81, 1973, 637–654. Description: It developed the Black–Scholes model for determining the price of options, in particular stock options. The use of the Black–Scholes formula has become pervasive in financial markets, and has been extended by numerous refinements. Importance: Breakthrough, Influence Socioeconomics Ecological economics The Entropy Law and the Economic Process (1971, Harvard University Press) by Nicholas Georgescu-Roegen. Steady-State Economics (2nd edition, 1991, Island Press) by Herman Daly Natural Capitalism, Paul Hawken Small Is Beautiful, E.F. Schumacher Consumer theory Economics and Consumer Behavior, Deaton & Muellbauer, Cambridge. Production theory Industrial organization The theory of Industrial Organisation Tirole, Jean Description: Importance: Sunk costs and industry structure Sutton Description: Importance: Managerial economics Png, Ivan (2002), Managerial Economics, 2nd edition, Malden, MA: Blackwell. Png, Ivan (2005), Managerial Economics, Asia-Pacific edition, Singapore: Pearson Education Asia. Development economics The Theory of Economic Growth (1955) Arthur Lewis Description: First modern development economics textbook Importance: Introduction Development microeconomics (1999) Pranab Bardhan and Christopher Udry, Oxford Description: Widely used textbook. Importance: Introduction Development macroeconomics – Pierre-Richard Agénor and Peter J. Montiel. Description: Widely used textbook. Importance: Introduction Development Economics through the Decades: A Critical Look at 30 Years of the World Development Report (2009) – Shahid Yusuf. Description: examines the last 30 years of development economics, viewed through the World Bank's World Development Reports. The End of Poverty: Economic Possibilities for our time (2005) Jeffrey Sachs Welfare economics The Economics of Welfare Arthur Cecil Pigou The Economics of Welfare, 4th ed. 1932 Description: Pigou was the one of the most influential economists that dealt with Welfare economics. He developed the idea of Pigovian tax. Importance: Topic creator, Breakthrough, Influence Collective Choice and Social Welfare Amartya Sen Collective Choice and Social Welfare, 1970 Description: Inspired renewed interest in basic welfare issues, mentioned in Sen's Nobel citation Importance: Influence Health economics Uncertainty and the Welfare Economics of Medical Care Kenneth Arrow American Economic Review 53(5): 941–973, 1963 Description: Explores the "specific differentia of medical care as the object of normative economics", demonstrating that the consideration of uncertainty is key to understanding markets in health care. Importance: Generally considered a seminal work of enduring significance; key to the foundation of health economics