LAPD gets...well...Freaky

By Ian

The popularity of Freakonomics has done two bad things, in my estimation. First, it cast the work of economics that looks at things other than say income, GDP, or currency markets as aberrant. And second, the focus on "economics" downplays what I think is the real power behind Levitt's work: statistics. Sure, sure, econ is concerned with incentives and all that; so are a vast number of other social sciences. But almost without fail, the tidbits in Freakonomics are the result of assiduous and often inventive efforts at working with data. (Even, in my estimation, the Sumo examples -- I know of no place in statistics classes where students are told not think about why certain patterns or correlations are occuring; there is nothing unique to the economics profession that resulted in thinking about the win/loss record for on-the-bubble wrestlers.)

I quote the inestimable Will Wilkinson's "Caesar's Bath" contribution:

Levittolotry. Yes. He's smart and interesting, but his work isn't that unusual, and he doesn't walk on water. He's a super-clever, McGyver-esque technician, able to conjure up a useful empirical study out of a paper clip, a length of string, and a stick of gum. It's sweet, but not filling. I want theory.

Far from the dry work of people "who are good with numbers but lack the personality to be accountants" (as the old joke goes), the work of a well trained statistician could be every bit as "freaky" as that of an economist.

To wit:

LOS ANGELES -- Dogged by scandal, the Los Angeles Police Department is looking beyond human judgment to technology to identify bad cops.

And what is this magical machine doing, one might wonder, to ferret out bad cops?

Statistics.

The system, developed by Sierra Systems Group and Bearing Point, mines databases of complaints, pursuits, lawsuits, uses of force and other records to detect patterns that human eyes might miss or choose to ignore.

In other words, there are correlations between certain kinds of "flags" and the tendency for a cop to be a problem. The resorting to some mechinized process seems to be more a political decision -- "Hey, man. I didn't say you were bad. The computer just spit your name out. No one working for the Rat Squad here, boyo." -- than anything else. Statisticians could very well be saving lives and making the police force a better group all around.

Please note that the tetchy sound of this is not meant in any way to castigate the economist himself--the credit and rewards are his due, and the heavy-weather is not of his own making (aside from going along with the terrible title). Reading his actual papers is gripping, even when some of the technical details fly over my head. But of course, as even he is wont to say, I must consider the economics of the situation. If this is what people think all economists do -- and is a skill or field of work available only to those trained in economics -- then there could well be a surge in the number of people appling to econ programs. And the last thing I need is more competition.

For continually interesting talk about modeling and stats, I refer you to the Statistical Modeling, Causal Inference, and Social Science weblog.

Comments


Kevin Brancato [TypeKey Profile Page] wrote:
First, it cast the work of economics that looks at things other than say income, GDP, or currency markets as aberrant.

I don't want to agree with you, so let me argue:

Levitt and Dubner write well on cool and freaky subjects, and I think their readers will undoubtedly agree that their book is fun. But it's so much fun, that there has already started demolition and reconstruction of the popular view of economics. I think L&D have bulldozed the old definition of economics as the study of business cycles, money, credit, banking, and other moldy subjects. They've clear-cut the old-growth macroeconomic forest, and in its place, planted saplings from the statistical science of incentives.

Alternatively, by completely avoiding macroeconomic theory and data, Freakonomics has plunged the study of the macroeconomy using aggregate statistics into a (short-term) dark age.

After all, with all the popular and freaky things economists can do with statistics, will economists pretend any longer to actually be interested in money, credit, national income, and the business cycle?

I mean, what incentive so economists yearning for popularity have to actually study the economy anymore?

I'm not sure if I take this seriously, but it was fun to think about.

-- July 25, 2005 4:05 PM


Ian wrote:

Well, I don't see that it was popularity that drove too many people into the study of the macroeconomy in the first place, but that could just be my impression of the situation.

"Demolition and reconstruction" is a generous description. In fact, I'd argue that in the delineation of Levitt's work as "rogue" (in whatever definition one cares to use, the implication is of one very separate from the accepted norm) does no such thing other than convey the message that the orthodoxy of economics has little interest in cheating, real estate, drug use, abortion, etc. The casting of the work as "freakish" is not a welcoming position, nor does the book go to any lengths to point to other places where similar work is being carried out. (It fell to others to do so.) The clear, and I would say through the choice of the title purposeful, intent of the book is to draw attention to a person that should be viewed as "extraordinary" (in the original senses of the word) within the economics profession.

And, just to go along with the genial disagreement, I might hasten to add that a person at your august institution might well wish to remind the reading public that economists and statisticians have been doing extensive work well beyond the normal realm of "the economy" for quite a few years. (And, ahhh, A-HEM.)

In general, while the book is entertaining, I think it's a disservice to paint a single man as a the lone standout against a herd-like subservience to employment surveys and capital flows.

-- July 25, 2005 4:27 PM


Kevin Brancato [TypeKey Profile Page] wrote:

I think L&D fail utterly to paint L as a rogue or a freak. He came off as an economist on the cusp, not an economist on the fringe. All that claptrap about freakiness fades away real fast, especially when his coauthors are mentioned. I simply didn't believe that L was a freak, a rogue, or a standout; but, as you noted, I come from some pretty freaky places. And dealing with Wal-Mart opponents on a daily basis, I'm used to people just making things up...

All I wanted to noted, really, is that L&D might have wanted to make L look extraordinary, but in doing so, they knocked the economic study of the economy down several pegs.

They didn't so much impugn the orthodoxy as send textbook writers and popularizers back to the copy editor for some pretty hasty revisions, so that they can appeal to a public that knows what it wants, and wants it now. Not that I think guns versus butter will be replace with abortions vs. crime any time soon!

Should I get Levitt to autograph my copy of this book?


-- July 25, 2005 5:28 PM


Buzzcut wrote:

I agree that Freakonomics is statistics, not economics. Freakonomics has no special claim to the subjects it has investigated, it could have been done by sociologists, political scientists, or even engineers (we're good at math, ya know).

Here is my problem with Freakonomics (one shared by Arnold Kling): it seems to me that it is falling into the same talking points as Marxism, Freudianism, Taylorism, Evolutionary Psychology, etc. before it by wrapping itself in the word SCIENTIFIC, when in truth it is not. All the clever data manipulation in the world can't make invalid data valid. You can find all the correlations in the world, but you still can't PROVE causation.

-- July 26, 2005 4:35 PM


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