A friend asked at lunch the other day what I thought accounted
for the phenomenal success of Freakonomics.
A good question. The book appeared in April 2005; only last
week did it fall off The New York Times best seller list for
the first time. It has sold more the 2 million copies in the
United States alone (there are 30 foreign editions published
or in the works). That's three times as many copies sold in
18 months as Milton Friedman's Capitalism
and Freedom has sold since 1962. How come?
My first thought was simply that it had been an especially
good collaboration. Stephen J. Dubner, 43, is a talented magazine
writer whose largely autobiographical 2003 book, Confessions
of a Hero-Worshiper, described his pursuit as an adult
of his childhood idol, Pittsburgh Steeler running back Franco
Harris. Levitt, 39, is an unusually accomplished economist
at the University of Chicago. Dubner and Levitt were made
for each other. The jacket logo, the orange slice cut
from what appears to be an apple, is as brilliant as it is
hauntingly
familiar.
Then, too, it seemed to me that that the
book's success had much to do with The New York Times Sunday
Magazine. Its editors assigned Dubner to do a story in 2003,
after Levitt won the John Bates Clark Medal, which is awarded
every couple of years the American economist under 40 deemed
to be the most promising. The article on which the book is
based first appeared there as "The Probability that a
Real Estate Agent is Cheating You (and Other Riddles of Modern
Life.)"
It was the Times Magazine, after all, that turned James Gleick's Chaos: Making a New Science
into a best-seller fifteen years ago. The similarities of
the two books are impossible to ignore: a talented journalist
telling the story of star investigators whose results purport
to undermine all that had gone before. Gleick, a Times
science reporter, had physicist Mitchell Feigenbaum, mathematician
Stephen Smale and maverick-for-all-seasons Benoit Mandelbrot.
Dubner had Levitt and his collaborators, economist Roland
Fryer and ethnologist Sudahir Venkatesh. The themes are the
same --weird science for normal people. The titles reflect
both books' underlying premise that familiar things aren't
what they seem.
Freakonomics even
invokes the entomological star of Chaos -- "the proverbial butterfly that flaps its wings on one continent and
eventually causes a hurricane on another"-- in order to illuminate
the conjecture for which Levitt is best known: that,
by making abortion widely available after 1973, Roe
v. Wade "help[ed] trigger,
a generation later, the greatest crime drop in recorded history."
(Naturally, not everyone is convinced!)
When I took the book down off the shelf, though, and read
through it again, a more satisfying interpretation of the
Freakonomics phenomenon occurred. It was to view the book as a promotion
for economics generally; for empirical, fact-finding economics
in particular -- a stimulating overture to any text, portal
to any classroom, an attractive front porch designed to tempt
the interested passer-by to sit for an hour or two before
moving on or, just possibly, entering into economics proper.
No wonder, then, as my friend reports, that economics classrooms
are full of undergraduates who have read the book, full of
enthusiasm for what they can learn.
Freakonomics doesn't
deliver learning at any depth. But then that is precisely
its charm. It's a remarkable evocation of the excitement of
being smart, young and on a roll; of the power of economic
methods, too. ("Levitt wasn't a human slide rule.... He seemed
to look at things not so much as an academic but as a smart
and curious explorer -- a documentary filmmaker, perhaps, or
a forensic investigator, or a bookie whose markets ranged
from sports to crime to pop culture...stripping away a layer
or two from the surface of modern life and seeing what is
happening underneath.")
The book, then, is "CSI: Economics," in the manner of the
current hit series on US network television, in which sexy
Crime Scene Investigation specialists reveal their clever
secrets week after week: (No fewer than three versions are
running concurrently: the original, Miami and New York.)
What about that cheating real estate agent? Misaligned incentives.
How to roll up the Ku Klux Klan? Publish their asymmetric
information. How do you spot a sumo wrestler who is
throwing his match? The same way Levitt caught Chicago teachers
who were changing students' answers on standardized tests
in order to make themselves look good: reason through
the incentives, and then look for evidence in the data. In
the latter case, it was a superabundance of consecutive correct
answer strings by many students; in the former, an unusually
high incidence of victories for the underdog in swing sumo
tournament matches where the winner had nothing to lose.
What about those crack cocaine foot soldiers in Chicago whom
Levitt's colleague Venkatesh befriended (after they decided
not to kill him in that stairwell)? Why do they work long
hours for an estimated wage of $3.30 an hour? Their dangerous
jobs are organized as a tournament, much the same as associate
lawyers, NFL draftees and movie actors. A few lucky
winners will be promoted to high salaries. All the rest eventually
will go on to work at something else. What about the
sudden appearance of distinctly "black" names -- Imani and
Shanice, DeShawn and Darnell? Levitt's student Fryer locates
the decision in the parents' expectations of their child's
chances of success -- and backs it up with statistical analysis
of class and income. . And so it goes, a series of fast-moving
episodes designed to showcase Levitt and associates' capacity
to "quantify culture."
In contrast, Tim Harford's The Undercover Economist:
Exposing Why the Rich Are Rich, the Poor Are Poor -- and Why
You Can Never Buy a Decent Used Car seeks to cover the
waterfront. It appeared just six months after Freakonomics.
Despite the jaunty title and tone, it is a veritable microeconomics
textbook, a solid success, but nowhere near the best-seller
that Freakonomics has become. There are many others, including Steven
Landsburg's The
Armchair Economist: Economics and Everyday Experience
("Most of economics can be summarized in four words:
People respond to incentives"), David Friedman's
Hidden
Order: the Economics of Everyday Life, and Daniel Hamermesh's
excellent little Economics
Is Everywhere. But for a certain kind of reader, Dubner
and Levitt have cornered the market.
The problem, if there is one, is the dilemma that Freakonomics poses for The New York Times. The newspaper's public editor, Byron Calame, noted
recently that the Times had increasing portions of the paper
over to special sections that operate more like magazines,
in hopes of "generating increased advertising revenue to ward
off cutbacks in the daily sections' core news coverage." These
magazine sections feature coverage that is often fluffy or
"soft," in the vernacular of the newsroom. They include lifestyle
sections such as Style, Escapes, Travel, and Dining, but none
is more profitable than the Sunday magazine (which is said
to contribute more than $50 million in pretax profit to the
paper, a tenth or more of the Times' operating earnings).
True, the Sunday Magazine has been there for a century, while
the other sections range in age from thirty years to one.
True, too, that the magazine has contained some of the best
journalism in the paper. It has also contained some of the
worst. And in its quest for the elusive quality of "edge,"
the Sunday Magazine sometimes undermines the tough-minded
and well-modulated point of view, once described at "informed
and tolerant," that has been the Times's
most admirable characteristic over the years. In due course,
the relative lightheadedness of these magazine sections eventually
could threaten the integrity of the paper's "core news report,"
Calame warned, and Times editor Bill Keller promised continued
vigilance.
The question, then, is one of balance. If Levitt were writing
a monthly "Economic Scene" column for the business section,
as part of the rotation that includes the University of California
at Berkeley's Hal Varian, Cornell's Robert Frank and Chicago's
Austan Goolsbee, nothing would seem out of place, for the
point of that rotation is to offer different but roughly comparable
angles of vision. But the column that he and Dubner write
regularly for the magazine gives the duo a disproportionate
voice. It probably also insulates them to some extent from
the kind of arms-length coverage of economics itself to which
the Times aspires.
Levitt's landmark study (with Yale's John J. Donohue III)
of the link between abortion and crime-prevention has generated
considerable criticism since it was first published in 2001
-- including bitter quarrels with colleagues and peers. In
a balanced and ahead-of-the-curve story in the Times' now-defunct
Arts and Idea section in April 2001, Columbia University journalism
professor Alexander Stille described what was then the state
of play. ("... [A]s other experts have had their first chance
to scrutinize the research in detail, almost every aspect
of the theory has been attacked, from its assumptions to its
conclusion that abortion and crime are connected, not separate
trends that happened to surface at the same time. Indeed,
given all the influences on the crime rate -- including the
economy, the availability of guns and drugs, and policing
strategies -- some critics doubt whether it is ever possible
to figure out the precise relationship between the two, let
alone to assert that abortion might be responsible for a 50
percent drop in crime. 'My instinct was nothing in the social
sciences accounts for 50 percent of anything,' said Ted Joyce,
an economist who has examined Mr. Donohue and Mr. Levitt's
data and is now about to publish his own counterstudy.") Since
then, the controversy has only escalated. The Wall Street
Journal and The
Economist have reported
on the most recent aspects of it, but in the eighteen months
since Freakonomics appeared, the contretemps has yet to be covered in
the Times. "Knowing
what to measure and how to measure it makes a complicated
world less so," assert Dubner and Levitt in their book.
So who was right? Stille and core news report? Or the
Sunday Magazine,
which simply ignored the misgivings?
The impression Freakonomics gives is that Levitt is truly nonpareil. At one point, California Institute
of Technology economist Colin Camerer (who is himself no slouch)
tells Dubner, "Levitt is considered a demigod, one of the
most creative people in economics and maybe in all social
science. He represents something everyone thinks they
will be when they go to grad school in econ but usually they
have the creative spark bored out of them by endless math
-- namely, a kind of intellectual detective trying to figure
stuff out."
In fact there are many empiricists of his generation who
have figured out clever ways to use "natural experiments"
to gauge the effects of things previously considered unmeasurable
-- MIT's Daron Acemoglu (political and legal institutions)
and Josh Angrist (family size), Berkeley's David Card (immigration),
Princeton's Alan Krueger (wages), Harvard's Caroline Hoxby
(education) and Lawrence Summers (unemployment), to name just
a few. And of course there are many clever economists who
are not empiricists.
Certainly Steve Levitt has reinvigorated interest within
the profession in the economics of crime; without, he has
sold more than two million books. Eventually, Dubner's appreciation
of Levitt will find a place on the shelf with biographies
of many other economists, just as the earlier book about his
obsession with Franco Harris sits in the library between books
about owner George Halas, coaches Woody Hayes and John W.
Heisman and running back Paul Hornung. Levitt is a star economist,
for sure; Dubner is a dandy writer: there is something greatly
appealing about the inside-out explanations that they have
contrived. But Freakonomics is no better a guide to our changing times than "Chaos"
was to atmospheric science. The influence of that butterfly's
wings has been exaggerated.