Abstract This paper looks at the book "Freakonomics" by Steven Levitt and Stephen Dubner, which is not a conventional book on economics. The paper explains that "Freakonomics" does not have a unifying theme - no single idea that runs throughout the book, but if there is a unifying theme, it is that conventional wisdom is inadequate. The paper examines how Levitt and Dubner show that in many instances conventional wisdom is inadequate and that it does not explain what it purports to explain, or that it does so in ways that are simply wrong. The paper then looks at how Levitt and Dubner attack the subject of insider knowledge. The writer believes that while this book may not be dazzling, it is certainly thought-provoking and it is well worth the effort of a good read.
From the Paper "Consider for example one of the chapters that will doubtlessly raise hackles in many circles: "Why Do Drug Dealers Still Live with Their Moms?" One of the first thinks that Levitt and Dubner establish in this chapter is that, yes, a remarkable number of drug dealers do live with their mothers, a statistic that is not regularly portrayed on television's many crime-busting series. (87-88) Why? The answer lies in the field in which Levitt is most schooled: economics. Drug dealers live at home for the same reason that low-budget college students live at home: because they cannot afford to live on their own. But how can this be, if they are indeed drug dealers?"
Abstract This book review examines the chapters in Levitt and Dubner's off-beat and irreverent work, "Freakonomics", which covers many issues in society from an economic bent. Some of the outlooks may be controversial, yet the reviewer sees them as quite valid. According to the review, Levitt and Dubner interview many people from different segments of the working world to gather information about society. The review also illustrates the authors' views on crime, and the circumstances that cause it to rise or fall. The review concludes by showing how the authors discuss thinking "sensibly" about real people in the real world. They urge skepticism with accepted wisdom, and looking underneath a layer of society to discover the truth.
From the Paper "Levitt maintains economists love incentives and believe incentives can fix just about any problem. He lists many incentives we respond to during life, that incentives urge people to do the right thing rather than the wrong thing, and that someone has to invent incentives. He also maintains incentives must be appropriate to be effective. He also maintains that just about everyone cheats - it is just a matter of the stakes and incentives. Many people spend their time thinking of ways to beat the system, rationalizing it as "getting more for less." He discusses how this relates to education and high-stakes testing, and how it might influence teachers to cheat to gain bonuses and save their jobs. Economists identified patterns that might indicate a teacher was changing answers in a classroom, and discovered that some teachers in the Chicago Public Schools were cheating by erasing students answers and filling in the correct answers. He relates this cheating to Japanese sumo wrestlers, who he maintains also cheat. He shows why they might cheat, and offers some ways to measure data to prove they cheat, and cites information from former sumo wrestlers who said some matches were rigged. Then he discusses the honor system as it relates to bagels and white collar crime, noting that office workers cheat, do not pay for bagels, and that larger offices are worse than small ones. He shows the honor-system does work, at least about 87 percent of the time."
Tags: Steven, D., Levitt, Stephen, J., Dubner, Freakonomics
Abstract This paper discusses how originally Levitt and Dubner wrote a newspaper column and due to its successes wrote a book on an economist's analysis of issues of social and biological concern and controversy. It explores a few anecdotes from the text. The author expands on the writing style and offers a personal opinion on the book.
From the Paper "Levitt and Dubner look at the world in a way that is both surprising, occasionally funny, and always enlightening, by drawing unexpected theoretical connections between the different but complementary theoretical rubrics of sociology and economics. In answer to the question about the drug dealers, for example, the authors contend that drug dealer's lackeys, rather than being wealthy as is commonly imagined, actually accept an initial salary pittance in exchange for community and social status (hence the fact that most still live at home). This is very much like the reason most interns and individuals taking low-paying entry-level publishing jobs for little money. Their jobs allow these aspiring young people to 'see and be seen' in a world they would not otherwise have access to, such as the White House or a elite firm. Individuals with youth and energy do so with the hope of a much bigger payoff of status and money later on. "
This paper analyzes the book "Freakonomics" by Steven D. Levitt in corroboration with Stephen J. Dubner and looks at its application to modern society as well as its literary merit.
Abstract 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."
