The book Freakonomics by Steven D. Levitt and Stephen J. Dubner uses a number of specific examples to demonstrate the idea that incentive shape society. Although the basis of their argument is generally true, how they present their position on each question throughout the book ends up weaken their point.…
READ: Naked Economics: Undressing the Dismal Science, Charles Wheeland, W.W. Norton, 2003. Completely- cover to cover.…
“An expert must be bold if he hopes to alchemize his homespun theory into conventional wisdom …nuance often doesn’t get much attention.” Written by New York Times journalist Stephen J. Dubner and co-authored by John Bates Clark Medal awardee Steven D. Levitt, Freakonomics addresses those conventional wisdoms conceived by the partisan tendencies of the experts behind them; it delves into the economics, or as Levitt puts it, “incentives,” behind…everything. Freakonomics does not attempt to constrain itself to discussion of exchange of goods and services. Its application of economic principles to a variety of scenarios ensures that the book appeals to a general audience rather than remaining an obscure book only read by the academia.…
The disequilibrium of greed portrayed in Kino’s imaginary story indicated that equilibrium is not only necessary at the lowers of social status, but also required in the economy and global market today. Jamie Woodwell, in her article about mortgage banking, titled, A Detour to Dis-Equilibrium, speaks about the global market saying, “When a shock hits a market— a dramatic shift in supply or demand— the market moves to dis-equilibrium. When that happens buyers and sellers cannot come to terms, the market slows and little new business is transacted” (Woodwell). In her article, Woodwell addresses mortgage banking as a systematic market, and thus displays the negative impacts of a fallen pillar of a methodical market. Woodwell explains the negative…
Freakonomics chapters two, three, and five intrigued me the most due to the chapter titles. In chapter two, the authors discuss the title question of the chapter, “How is The Ku Klux Klan Like a Group of Real-Estate Agents.” How does the world relate to one another, and how are groups the same in an information asymmetry aspect. In chapter three, the authors discuss the title question of the chapter “Why do Drug Dealers Still Live with Their Moms”, are drug dealers more likely to live with their mom, or how does the lifestyle impact the actual person. In chapter five, the authors discuss the title “What Makes a Perfect Parent” what makes a parent perfect,…
As an economics training book, Cocktail Party Economics highlights the concepts of economics, bringing them to light in a simple way without taking away from the importance of each theory and thought. This is a book written to engage its readers and interest them in the idea of the economic thought process. Addressed to “students everywhere, especially those who like economics … or want to,” this book is exactly that. Cocktail Party Economics is a skillful portrayal of the process of economic thought, which entertains young readers due to the author’s sometimes silly and sarcastic moments. Economics may sometimes appear to be a difficult subject filled with elaborate terms and descriptions hard to grasp the understanding of, yet the book brings the subject to life and turns it into a less complex compilation of concepts in a cocktail party setting.…
predicted and used to stimulate or punish people, but like in the “Daycare Dilemma,” are…
This portion of the book is merely predictions, but valid ones at most. Throughout this chapter, Charles Wheelan addresses the possible (and most likely) state of the economy in 2050. Furthermore, Naked Economics reminds the reader multiple times that scarcity is the backbone to economics, but goes further in depth in the Epilogue Chapter. In this chapter, 7 questions were asked. One of the questions asked, “How many minutes of work will a loaf of bread cost [in 2050]” (Charles Wheelan, 317).…
One of the central tools in Freakonomics is the natural experiment - a technique that requires persistence and luck to discover seemingly random shocks that can be viewed as experimental treatments in the wild. “Poor Economics” by Banerjee and Duflo (2011) is some ways a natural successor to this book and the winner of the 2011 Financial Times and Goldman Sachs Business Book of the Year prize. It applies these ideas to the problem of economic development to illustrate how one can use carefully designed ex- periments in developing economies to see how individuals respond to various policies, such as cash transfers for education and health services, or regularly photographing teachers to ensure that they actually show up for…
Throughout the book Freakonomics written by Steven Levitt and Stephen Dubner, the readers minds are constantly tested by atypical questions that make them change their way of thinking, from morally to scientifically. It points out how people have an ideal image of how things should be, or what they familiarly recognize to be the “right” way things work, and economics prove how things actually work. Based on the data and research gathered on specific topics shown in the book, the claim that “conventional wisdom is often wrong” is proved to be a valid statement. The authors introduce what economists mainly try to prove, “..when moral posturing is replaced by an honest assessment of the data, the result is often…
Steven D. Levitt is an award winning economist. Stephen J. Dubner is an award winning writer. The two met in Chicago, and the result was Freakonomics, a book that claims to explore the hidden side of everything, using real-life examples such as studies and polls conducted by Levitt to explain how economics is everywhere, that economics is how the world really functions. Through everything from analyzing the inner thought processes of real-estate agents and crack dealers, to predicting the next popular baby names, Levitt and Dubner guide readers to think differently, ask questions, and to use “Freakonomics” in their daily lives.…
In its use of data to make sense of seemingly unrelated events via economics- Freakonomics operates from a rather Godless perspective- denying His design. The authors work very hard to stick to the numbers and to be objective. However, as we learned in our primary textbook- “Values enter the picture at several stages, both consciously and subconsciously- when choosing a topic to research, when variables are chosen to use in analysis, and finally when suggestions are made as to how a problem may be solved.” I strongly suspect that the authors and are not operating from the same value system.…
I am not an economist. I never took a class in economics as an undergrad, nor had any interest to do so. As an undergrad I thought economics should be left to the accountants and business professionals while I focused my attention on policies and politics. When I learned I had to take a graduate level course in economic policy I was for lack of a better word intimidated. My text books all arrived on the same day and my fear mounted as the books were thick with titles suggesting the depth of the material that was as foreign to me as Mandarin…
Henry Hazlitt's book, Economics in one lesson, brings to perspective numerous topics that are mainstream issues in the economy today. His book breaks down in detail specific concepts that have their effects on the economy. Hazlitt explains topics such as war and the expenses, the tariff system, and productivity and the minimum wage laws.…
Freakonomics by Steven D. Levitt and Stephen J. Dubner is a book aimed at exposing the secret within everything. The authors prove that in many cases, two items don’t have to be connected because they are correlated. Moreover, two unrelated items can in fact be connected. Proving so was less difficult than it would seem. All it took was the right information. They were able to prove the most unlikely of correlations. The authors stress that in a world where incentives influence every action, information is priceless.…