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Freakonomics [Revised and Expanded]: A Rogue Economist Explores the Hidden Side | |||
Freakonomics [Revised and Expanded]: A Rogue Economist Explores the Hidden Side |
Which is more dangerous, a gun or a swimming pool? What do schoolteachers and sumo wrestlers have in common? Why do drug dealers still live with their moms? How much do parents really matter? How did the legalization of abortion affect the rate of violent crime?
These may not sound like typical questions for an econo-mist to ask. But Steven D. Levitt is not a typical economist. He is a much-heralded scholar who studies the riddles of everyday life—from cheating and crime to sports and child-rearing—and whose conclusions turn conventional wisdom on its head.
Freakonomics is a groundbreaking collaboration between Levitt and Stephen J. Dubner, an award-winning author and journalist. They usually begin with a mountain of data and a simple question. Some of these questions concern life-and-death issues; others have an admittedly freakish quality. Thus the new field of study contained in this book: freakonomics.
Through forceful storytelling and wry insight, Levitt and Dubner show that economics is, at root, the study of incentives—how people get what they want, or need, especially when other people want or need the same thing. In Freakonomics, they explore the hidden side of . . . well, everything. The inner workings of a crack gang. The truth about real-estate agents. The myths of campaign finance. The telltale marks of a cheating schoolteacher. The secrets of the Klu Klux Klan.
What unites all these stories is a belief that the modern world, despite a great deal of complexity and downright deceit, is not impenetrable, is not unknowable, and—if the right questions are asked—is even more intriguing than we think. All it takes is a new way of looking.
Freakonomics establishes this unconventional premise: If morality represents how we would like the world to work, then economics represents how it actually does work. It is true that readers of this book will be armed with enough riddles and stories to last a thousand cocktail parties. But Freakonomics can provide more than that. It will literally redefine the way we view the modern world.
Levitt is regarded as among the most creative thinkers in contemporary economics, gifted at drawing connections among seemingly unrelated forces. He believes, for example, that there is a relationship between legalization of abortion and the decline in crime -- more on that in a moment. Levitt is the latest winner of the American Economics Association's John Bates Clark Medal, granted biennially to the top economist under the age of 40. Clark medalists often become influential figures: Paul Krugman, an economist at Princeton and a closely read columnist for the New York Times, was a Clark winner, for instance. In typically dry economics-speak, the Clark judges declared, "Steven Levitt is the most innovative empirical researcher in his cohort." American Economics Association, just come out and say it: The guy is interesting!
Freakonomics presents Levitt's findings in accessible, non-academic terms. It is an engaging and always interesting work, rich in insights, full of surprises. Readers, though, may find themselves in a perpetual state of confusion regarding just what it is they are reading. The book is by Levitt and Stephen J. Dubner, a writer whose previous books include Turbulent Souls and Confessions of a Hero-Worshipper. You're never sure who is speaking. Sometimes Levitt or his work is spoken of in the third person, as if Dubner were writing of them in a detached way; sometimes the text sounds like Levitt addressing the reader; sometimes the book spends pages discussing work done by people other than Levitt, yet the impression given is that it's all Levitt's thinking. Often the reader must flip to the source notes to try to figure out what's going on.
The mishmash quality of Freakonomics seems to trace to its origin. In 2003, Dubner wrote a New York Times Magazine article on Levitt's quirky theories. The piece was a great read, and Levitt and Dubner began to collaborate on articles. According to Freakonomics, Levitt then agreed to write a book, but only if Dubner actually did the writing. (Writing is work, as any economist will tell you!) Yet it seems the two never resolved the question of whether Dubner would ghostwrite for Levitt or write about Levitt. The result feels too much like a magazine article padded to book length. Each chapter of Freakonomics even begins with quotations from the Times piece, as if it merited study by future historians.
Confusing structure aside, Freakonomics is packed with fascinating ideas. Consider Levitt's notion of a relationship between abortion access and the crime drop. First, Freakonomics shows that although commonly cited factors such as improved policing tactics, more felons kept in prison and the declining popularity of crack account for some of the national reduction in crime that began in about the year 1990, none of these completes the explanation. (New York City and San Diego have enjoyed about the same percentage decrease in crime, for instance, though the former adopted new policing tactics and the latter did not.) What was the significance of the year 1990, Levitt asks? That was about 16 years after Roe v. Wade. Studies consistently show that a disproportionate number of crimes are committed by those raised in broken homes or who were unwanted as children. When abortion became legal nationally, Levitt theorizes, births of unwanted children declined; 16 years later crime began to decline, as around age 16 is the point at which many once-innocent boys start their descent into the criminal life. Leavitt's clincher point is that the crime drop commenced approximately five years sooner in Alaska, California, Hawaii, New York and Washington state than it did in the nation as a whole. What do these states have in common? All legalized abortion about five years before Roe.
Other Levitt theories span the landscape. Along with sociologist Sudhir Venkatesh of Columbia University, Levitt has found that drug gangs are structured essentially like street versions of Fortune 500 corporations. Levitt studied high-tech car alarm devices and found they benefited the people who did not buy them almost as much as those who did, by discouraging all auto theft. Levitt has shown that campaign money has almost nothing to do with who wins elections. He has even looked at how parent name children. Parents who expect their children to go far in life give them classy-sounding names such as Katherine; parents who do not expect their children to go far give them names such as Brittney. (That Levitt can cite statistics for all this -- you'll have to read the book -- is impressive.) For amusement value, Levitt makes a case that academic cheating differs little from cheating in sumo wrestling.
Not all of Levitt's ideas meet the test of originality. He proffers that real estate agents serve themselves rather than their clients when they push sellers to take the first bona-fide offer, even if holding out might bring a better price. The agent wants the seller to take the first solid deal because then the agent gets the commission right away; holding out might mean weeks or months of extra work for the agent, while increasing his or her commission only slightly. Freakonomics presents the notion that homeowners and real-estate agents may have conflicting monetary incentives as big news. Memo to the University of Chicago Economics Department: Everyone who has ever sold a house already knows this.
Freakonomics proposes four basic notions: that incentives govern life, that conventional wisdom is often wrong, that "dramatic effects often have distant, even subtle causes" and that experts sometimes use their "informational advantage" to pursue private agendas. Valid points -- but is there anyone who disagrees with any of them? There is no requirement that an economist's work have any larger theme: To be a good professor and produce interesting papers is more than most accomplish. But Freakonomics leaves the reader with the sense of encountering an assortment of clever ideas that have been crowbarred together into something that doesn't really work as a book. Academic careers may not need unifying themes; books do.
Reviewed by Gregg Easterbrook
Copyright 2005, The Washington Post Co. All Rights Reserved. --This text refers to the Roughcut edition.
From Bookmarks Magazine
"Rogue" economist might be an overstatement. As a professor of economics at the University of Chicago and the recipient of the John Bates Clark medal (presented by the American Economics Association to the nations most outstanding economist under 40) Steven Levitt is hardly an outsider. Yet when journalist Stephen Dubner published a profile of Levitt in The New York Times Magazine, the economists theories struck many as, well, freaky. Levitts field of behavior economics tries to combine classical economics with the emotional rules of human behavior. Some critics complain that Freakonomics reads too much like an extended collection of articles without a theme; wasnt this the same complaint we heard most often about Malcolm Gladwells Blink (**1/2 Mar/Apr 2005)? Sometimes we dont mind learning about a variety of things, you know. Levitt and Dubners continued partnership uncovers entertaining tales of the many quirks of human behavior.
Copyright © 2004 Phillips & Nelson Media, Inc. --This text refers to the Roughcut edition.
From AudioFile
According to economist Levitt and writer Dubner, everything--including the cheating habits of Sumo wrestlers, the choice of baby names, the finances of crack dealers, or the likelihood of bagel theft--can be decoded if we study the numbers. Using a freewheeling narrative style that jumps from one cultural phenomenon to another, FREAKONOMICS takes on conventional wisdom. (No, apparently it doesn't help much if you read to your child, and, yes, even Harvard graduates from good families can become serial killers.) There's no unified field theory here, but there is a message behind the medium: Don't trust the experts. Co-author Dubner reads in a friendly, instructive style that captures the enthusiasm of the authors. This is especially recommended for those who liked the books of Malcolm Gladwell or James Surowiecki's THE WISDOM OF CROWDS. R.W.S. © AudioFile 2005, Portland, Maine-- Copyright © AudioFile, Portland, Maine --This text refers to an out of print or unavailable edition of this title.
From Booklist
Award-winning economist Levitt and journalist Dubner join forces to strip a layer or two from the surface of modern life and see what is happening underneath. The authors' worldview as they explore the hidden side of many issues is based on a few fundamentals--among them, incentives are the cornerstone of modern life, and conventional wisdom is often wrong. They look at many different scenarios in a treasure-hunt approach, employing the best economic analytical tools but also following any freakish curiosities that they encounter--hence the study of Freakonomics. They evaluate intriguing questions such as "What do Schoolteachers and Sumo Wrestlers Have in Common?" "How is the Ku Klux Klan Like a Group of Real Estate Agents?" "Where Have All the Criminals Gone?" and "What Makes a Perfect Parent?" We are counseled to think sensibly about how people behave in the real world and to ask a lot of questions. This excellent, readable book will enlighten many library patrons. Mary Whaley
Copyright © American Library Association. All rights reserved --This text refers to the Roughcut edition.
Fort Worth Star-Telegram
"Freakonomics was the It book of 2005." --This text refers to an out of print or unavailable edition of this title.
Book Sense Picks and Notables
"Freakonomics challenges conventional wisdom and makes for fun reading." --This text refers to the Roughcut edition.
New York Times Book Review
"The trivia alone is worth the cover price." --This text refers to the Roughcut edition.
Publishers Weekly (starred review)
"Hard to resist." --This text refers to the Roughcut edition.
Wall Street Journal
"If Indiana Jones were an economist, hed be Steven Levitt
Criticizing Freakonomics would be like criticizing a hot fudge sundae." --This text refers to the Roughcut edition.
San Diego Union-Tribune
"Levitt dissects complex real-world phenomena, e.g. baby-naming patterns and Sumo wrestling, with an economists laser." --This text refers to the Roughcut edition.
Financial Times
"Levitt is one of the most notorious economists of our age." --This text refers to the Roughcut edition.
Salon.com
"A showcase for Levitts intriguing explorations into a number of disparate topics
. Theres plenty of fun to be had." --This text refers to the Roughcut edition.
Associated Press
"An unconventional economist defies conventional wisdom." --This text refers to the Roughcut edition.
Washington Post Book World
"The guy is interesting!" --This text refers to the Roughcut edition.