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Archive of posts filed under the Economics category.

Automation and judgment, from the rational animal to the irrational machine

Virgil Kurkjian writes: I was recently going through some of your recent blog posts and came across Using numbers to replace judgment. I recently wrote something about legible signaling which I think helps shed some light on exactly what causes the bureaucratization of science and maybe what we can do about it. In short I […]

My talk at the Brookings Institution this Fri 11am

The replication crisis in science: Does it matter for policy? Andrew Gelman, Department of Statistics and Department of Political Science, Columbia University I argue that policy analysts should care about the replication crisis for three reasons: (1) High-profile policy claims have been systematically exaggerated; (2) This has implications for how to conduct and interpret new […]

Jeff Leek: “Data science education as an economic and public health intervention – how statisticians can lead change in the world”

Jeff Leek from Johns Hopkins University is speaking in our statistics department seminar next week: Data science education as an economic and public health intervention – how statisticians can lead change in the world Time: 4:10pm Monday, October 7 Location: 903 School of Social Work Abstract: The data science revolution has led to massive new […]

The Map Is Not The Territory

This post is by Phil Price, not Andrew. My wife and I are building a new house, or, rather, paying trained professionals to build one for us. We are trying to make the house as environmentally benign as we reasonably can: ducted mini-split heating, heat pump water heater, solar panels, heat-recovery ventilator, sustainably harvested lumber, […]

Econ corner: A rational reason (beyond the usual “risk aversion” or concave utility function) for wanting to minimize future uncertainty in a decision-making setting

Eric Rasmusen sends along a paper, Option Learning as a Reason for Firms to Be Averse to Idiosyncratic Risk, and writes: It tries to distinguish between two kinds of risk. The distinction is between uncertainty that the firm will learn about, and uncertainty that will be bumping the profit process around forever. It’s not the […]

Bank Shot

Tom Clark writes: I came across this paper and thought of you. You might be aware of some papers that have been published about the effect of military surplus equipment aid that is given to police departments. Some economists have claimed to find that it reduces crime. My coauthors and I thought the papers were […]

“Suppose that you work in a restaurant…”

In relation to yesterday’s post on Monty Hall, Josh Miller sends along this paper coauthored with the ubiquitous Adam Sanjurjo, “A Bridge from Monty Hall to the Hot Hand: The Principle of Restricted Choice,” which begins: Suppose that you work in a restaurant where two regular customers, Ann and Bob, are equally likely to come […]

I think that science is mostly “Brezhnevs.” It’s rare to see a “Gorbachev” who will abandon a paradigm just because it doesn’t do the job. Also, moving beyond naive falsificationism

Sandro Ambuehl writes: I’ve been following your blog and the discussion of replications and replicability across different fields daily, for years. I’m an experimental economist. The following question arose from a discussion I recently had with Anna Dreber, George Loewenstein, and others. You’ve previously written about the importance of sound theories (and the dangers of […]

The ladder of social science reasoning, 4 statements in increasing order of generality, or Why didn’t they say they were sorry when it turned out they’d messed up?

You are invited to join Replication Markets

Anna Dreber writes: Replication Markets (RM) invites you to help us predict outcomes of 3,000 social and behavioral science experiments over the next year. We actively seek scholars with different voices and perspectives to create a wise and diverse crowd, and hope you will join us. We invite you – your students, and any other […]

A weird new form of email scam

OK, we all know that spam we get—sometimes spoofed as if from our own email address!—telling us to click on some link. Scene 1 The other day I got a new sort of spam. It was from a colleague, the subject line was “Are you available in campus,” and the email went like this: On […]

Concerned about demand effects in psychology experiments? Incorporate them into the design.

Johannes Haushofer sends along this article with Jonathan de Quidt and Christopher Roth, “Measuring and Bounding Experimenter Demand,” which begins: We propose a technique for assessing robustness to demand effects of findings from experiments and surveys. The core idea is that by deliberately inducing demand in a structured way we can bound its influence. We […]

Swimming upstream? Monitoring escaped statistical inferences in wild populations.

Anders Lamberg writes: In my mails to you [a few years ago], I told you about the Norwegian practice of monitoring proportion of escaped farmed salmon in wild populations. This practice results in a yearly updated list of the situation in each Norwegian salmon river (we have a total of 450 salmon rivers, but not […]

Gendered languages and women’s workforce participation rates

Rajesh Venkatachalapathy writes: I recently came across a world bank document claiming that gendered languages reduce women’s labor force participation rates. It is summarized in the following press release: Gendered Languages May Play a Role in Limiting Women’s Opportunities, New Research Finds. This sounds a lot like the piranha problem, if there is any effect […]

Pre-results review: Some results

Aleks Bogdanoski writes: I’m writing from the Berkeley Initiative for Transparency in the Social Sciences (BITSS) at UC Berkeley with news about pre-results review, a novel form of peer review where journals review (and accept) research papers based on their methods and theory — before any results are known. Pre-results review is motivated by growing […]

“Did Austerity Cause Brexit?”

Carsten Allefeld writes: Do you have an opinion on the soundness of this study by Thiemo Fetzer, Did Austerity Cause Brexit?. The author claims to show that support for Brexit in the referendum is correlated with the individual-level impact of austerity measures, and therefore possibly caused by them. Here’s the abstract of Fetzer’s paper: Did […]

What if that regression-discontinuity paper had only reported local linear model results, and with no graph?

We had an interesting discussion the other day regarding a regression discontinuity disaster. In my post I shone a light on this fitted model: Most of the commenters seemed to understand the concern with these graphs, that the upward slopes in the curves directly contribute to the estimated negative value at the discontinuity leading to […]

Another Regression Discontinuity Disaster and what can we learn from it

As the above image from Diana Senechal illustrates, a lot can happen near a discontinuity boundary. Here’s a more disturbing picture, which comes from a recent research article, “The Bright Side of Unionization: The Case of Stock Price Crash Risk,” by Jeong-Bon Kim, Eliza Xia Zhang, and Kai Zhong: which I learned about from the […]

Tony nominations mean nothing

Someone writes: I searched up *Tony nominations mean nothing* and I found nothing. So I had to write this. There are currently 41 theaters that the Tony awards accept when nominating their choices. If we are being as generous as possible, we could say that every one of those theaters will be hosting a performance […]

Vigorous data-handling tied to publication in top journals among public heath researchers

Gur Huberman points us to this news article by Nicholas Bakalar, “Vigorous Exercise Tied to Macular Degeneration in Men,” which begins: A new study suggests that vigorous physical activity may increase the risk for vision loss, a finding that has surprised and puzzled researchers. Using questionnaires, Korean researchers evaluated physical activity among 211,960 men and […]