In a serious essay or academic paper I would put any book title, whether fiction or non-fiction, or the title of any journal article, in italics. The name of the author should not be italicised. Publishing date and details usually go in brackets. So in the body of the text you could say something like:
In his study of camels which sleepwalk across the deserts of Arabia, G.K. Johnson in his book Do camels dream? refers to work he did in 1986.
The footnote might read Johnson G.K. Do camels dream? (London 1987).
Edit. This works for short stories assuming the short story concerned is the only content of the publication. If one is referring to a story from a book of short stories, then quotation marks rather than italics would be used, and there is a further system for referencing this. However I apologise that I may have got out of my depth on this as it is several years since I was writing academic essays.
Properly Punctuating Titles
Properly punctuating titles of literature, music, art, movies, and other works can be confusing, and the rules aren’t always consistent from resource to resource regarding this topic. Also, since mistakes are prevalent, we are so used to seeing the wrong punctuation that it actually looks right!
Here are some helpful hints on how to properly punctuate titles using capitalization, italics, underlining, and quotation marks.
Step 1, Capitalize Titles Correctly!
Although rules regarding correct title capitalization vary greatly, here are a few pointers to stand by: Capitalize the first and last word in a title and every word in the title except articles and prepositions. Some suggest capitalizing prepositions five letters or more in length, and I agree with this simply because it looks better (hence, my business name is All About Writing instead of All about Writing).
Capitalizing involves only the first letter of the word, of course.
When to Use Italics: Titles of Larger Works
Italics indicate the title of a major or larger work. Use italics for titles such as books, novels, magazines, journals, newspapers, and book-length poems, collections and anthologies; CDs, albums, ballets, operas, and longer, classical music compositions; television series, plays, movies, and films; video games; websites; and works of art and art exhibits.
Just remember, the title of any piece that stands alone as a single, unified work should be italicized.
What About Underlining?
In general, underlining and italics are used interchangeably, so the above rules for italics also apply for underlining.
However, when using the computer or typing, italics should always be used. Underlining should replace italics in handwritten projects only, as who has mastered the art of writing in italics so that it is legible and noticeable?
When to Use Quotation Marks: Titles of Smaller Works
Since quotation marks are tiny, you can remember that they are used for smaller works within the larger work or collection. Use quotation marks for titles of poems, short stories, book chapters, and articles in journals, magazines, and newspapers; and songs, single television episodes, and commercials.
It is important to be consistent throughout your writing with properly using italics versus quotation marks. Writing handbooks (Chicago Manual of Style, MLA, APA, and many others) vary in their rules for capitalizing and punctuating titles. Certain writing projects mandate using one writing handbook’s format over the others, so for academic work, please check with your professor as to the preferred handbook to use for your writing, citation, and punctuation guidelines.
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-by Christa Riddle