Economics in "Freakonomics"

Paper Summary:

In this article, the writer discusses that the book "Freakonomics" is a book about the exploration and reinterpretation of economics and statistical analysis. The writer maintains that the strength of the book is that it lacks all of the ingredients of academia, but rather takes on the topics of social maladies and everyday problems through the perspective of economics. The writer points out that Levitt, is entertaining in his application of his brand of economic theory to everyday problems and notes that this is what has made this book a truly interesting read. The writer concludes that the main weakness of "Freakonomics" lies in its rather un-revolutionary content and claims that the main reason to read this book is to receive a very interesting and entertaining introduction to the field of economics and the scientific process, rather than a revolutionary look into new studies of economics.

From the Paper:

"Thus the economic incentive to perform actions can be interpreted through several dimensions and perspectives. Levitt offers several examples to illustrate the meaning of an incentive driven individual. He argues that both inner city school teachers in Chicago and Sumo wrestlers in Japan are driven by incentives. The school teacher however is driven by social and moral incentives, while the sumo wrestler may be driven far more by economic ones. The basic fact lies in that each individual performs actions to the minimizing of the bad and maximizing of the good. This is the basic fundamental theorem of economics. It is because of differing incentives that cheating, lying, stealing and unethical behavior in general occurs. Levitt argues that no one perceives themselves as evil or bad, but rather that they place greater emphasis on certain incentives such as monetary ones.
The strength of this chapter is that provides a strong fundamental basis on which modern economics lies. The greatest concepts behind economics lie in the concept of economic equilibrium, the state in which balance is achieved."

Sample of Sources Used:

• "Freakonomics" by Steven D. Levitt in corroboration with Stephen J Dubner

More papers on Economics in "Freakonomics":

• Book Review # 144878 : "Is it Economics--or Freakonomics?"
• Book Review # 98459 : "Freakonomics"
• Book Review # 103875 : "Freakonomics" by Steven Levitt and Stephen Dubner"

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