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Freakonomics

By

Steven Levitt, Stephen Dubner

E. Vryonakis

Sep 29, 2019

Freakonomics explores the hidden side of everything. If morality describes the ideal world, then economics describes the actual world. Further, Freakonomics studies incentives and how different people in different professions respond.

I loved this book, though I think the title is a bit misleading. It's not really about economics. In fact, he's showing you what interesting things you can discover when you apply statistical analysis to problems where you wouldn't normally think of using it. I use statistical methods a fair amount in my own work, so I found it particularly interesting. The most startling and thought-provoking example is definitely the unexpected reduction in US urban crime that occurred towards the end of the 20th century. Crime rates had been rising for decades, and people were really worried about what would happen if the trend continued. Then, suddenly, they peaked and started to decline. Why? There were a bunch of theories, all of them superficially plausible.

I guess some people don't like this book because it's not centered around one theme. Instead, it's more about the seemingly diffuse academic work of one of the authors Steven D. Levitt (the other author is a journalist, Stephen J. Dubner). Levitt is something of an economist but more like a social scientist using the tools of Microeconomics applied to other fields that happen to catch his interest (often having something to do with cheating, corruption, crime, etc.).

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