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Archive of posts filed under the Economics category.

Chasing the noise in industrial A/B testing: what to do when all the low-hanging fruit have been picked?

Commenting on this post on the “80% power” lie, Roger Bohn writes: The low power problem bugged me so much in the semiconductor industry that I wrote 2 papers about around 1995. Variability estimates come naturally from routine manufacturing statistics, which in semicon were tracked carefully because they are economically important. The sample size is […]

Some experiments are just too noisy to tell us much of anything at all: Political science edition

Sointu Leikas pointed us to this published research article, “Exposure to inequality affects support for redistribution.” Leikas writes that “it seems to be a really apt example of “researcher degrees of freedom.’” Here’s the abstract of the paper: As the world’s population grows more urban, encounters between members of different socioeconomic groups occur with greater […]

“16 and Pregnant”

Ted Joyce writes: In December 2015 the AER published an article, “Media Influences on Social Outcomes: The Impact of MTV’s 16 and Pregnant on Teen Childbearing,” by Melissa Kearney and Phil Levine [KL]. The NBER working paper of this article appeared in January of 2014. It received huge media attention as the authors claimed the […]

Slow to update

This post is a placeholder to remind Josh Miller and me to write our paper on slow updating in decision analysis, with the paradigmatic examples being pundits being slow to update their low probabilities of Leicester City and Donald Trump in 2016. We have competing titles for this paper. Josh wants to call it, “The […]

Evaluating Sigmund Freud: Should we compare him to biologists or economists?

This post is about how we should think about Freud, not about how we should think about biology or economics. So. There’s this whole thing about Sigmund Freud being a bad scientist. Or maybe I should say a bad person and a terrible scientist. The “bad person” thing isn’t so relevant, but the “terrible scientist” […]

Should Berk Özler spend $2 million to test a “5 minute patience training”?

Berk Özler writes: Background: You receive a fictional proposal from a major foundation to review. The proposal wants to look at the impact of 5 minute “patience” training on all kinds of behaviors. This is a poor country, so there are no admin data. They make the following points: A. If successful, this is really […]

Early p-hacking investments substantially boost adult publication record

In a post with the title “Overstated findings, published in Science, on long-term health effects of a well-known early childhood program,” Perry Wilson writes: In this paper [“Early Childhood Investments Substantially Boost Adult Health,” by Frances Campbell, Gabriella Conti, James Heckman, Seong Hyeok Moon, Rodrigo Pinto, Elizabeth Pungello, and Yi Pan], published in Science in […]

Economic growth -> healthy kids?

Joe Cummins writes: Anaka Aiyar and I have a new working paper on economic growth and child health. Any comments from you or your readers would be much appreciated. In terms of subject matter, it fits in pretty nicely with the Demography discussions on the blog (Deaton/Case, age adjustment, interpreting population level changes in meaningful […]

A quick rule of thumb is that when someone seems to be acting like a jerk, an economist will defend the behavior as being the essence of morality, but when someone seems to be doing something nice, an economist will raise the bar and argue that he’s not being nice at all.

Like Pee Wee Herman, act like a jerk And get on the dance floor let your body work I wanted to follow up on a remark from a few years ago about the two modes of pop-economics reasoning: You take some fact (or stylized fact) about the world, and then you either (1) use people-are-rational-and-who-are-we-to-judge-others […]

A few words on a few words on Twitter’s 280 experiment.

Gur Huberman points us to this post by Joshua Gans, “A few words on Twitter’s 280 experiment.” I hate twitter but I took a look anyway, and I’m glad I did, as Gans makes some good points and some bad points, and it’s all interesting. Gans starts with some intriguing background: Twitter have decided to […]

Pastagate!

[relevant picture] In a news article, “Pasta Is Good For You, Say Scientists Funded By Big Pasta,” Stephanie Lee writes: The headlines were a fettuccine fanatic’s dream. “Eating Pasta Linked to Weight Loss in New Study,” Newsweek reported this month, racking up more than 22,500 Facebook likes, shares, and comments. The happy news also went […]

The Millennium Villages Project: a retrospective, observational, endline evaluation

Shira Mitchell et al. write (preprint version here if that link doesn’t work): The Millennium Villages Project (MVP) was a 10 year, multisector, rural development project, initiated in 2005, operating across ten sites in ten sub-Saharan African countries to achieve the Millennium Development Goals (MDGs). . . . In this endline evaluation of the MVP, […]

“The Internal and External Validity of the Regression Discontinuity Design: A Meta-Analysis of 15 Within-Study-Comparisons”

Jag Bhalla points to this post by Alex Tabarrok pointing to this paper, “The Internal and External Validity of the Regression Discontinuity Design: A Meta-Analysis of 15 Within-Study-Comparisons,” by Duncan Chaplin, Thomas Cook, Jelena Zurovac, Jared Coopersmith, Mariel Finucane, Lauren Vollmer, and Rebecca Morris, which reports that regression discontinuity (RD) estimation performed well in these […]

Does adding women to corporate boards increase stock price?

Anton Kasster writes:

Heuristics and Biases? Laplace was there, 200 years ago.

In an article entitled Laplace’s Theories of Cognitive Illusions, Heuristics, and Biases, Josh “hot hand” Miller and I write: In his book from the early 1800s, Essai Philosophique sur les Probabilités, the mathematician Pierre-Simon de Laplace anticipated many ideas developed in the 1970s in cognitive psychology and behavioral economics, explaining human tendencies to deviate from […]

Bayesian inference for A/B testing: Lauren Kennedy and I speak at the NYC Women in Machine Learning and Data Science meetup tomorrow (Tues 27 Mar) 7pm

Here it is: Bayesian inference for A/B testing Andrew Gelman, Department of Statistics and Department of Political Science, Columbia University Lauren Kennedy, Columbia Population Research Center, Columbia University Suppose we want to use empirical data to compare two or more decisions or treatment options. Classical statistical methods based on statistical significance and p-values break down […]

Debate over claims of importance of spending on Obamacare advertising

Jerrod Anderson points to this post by Paul Shafer, Erika Fowler, Laura Baum, and Sarah Gollust, “Advertising cutbacks reduce Marketplace information-seeking behavior: Lessons from Kentucky for 2018.” Anderson expresses skepticism about this claim. I’ll first summarize the claims of Shafer et al. and then get to Anderson’s criticism. Shafer et al. write: The Trump administration […]

“The problem of infra-marginality in outcome tests for discrimination”

Camelia Simoiu, Sam Corbett-Davies, and Sharad Goel write: Outcome tests are a popular method for detecting bias in lending, hiring, and policing decisions. These tests operate by comparing the success rate of decisions across groups. For example, if loans made to minority applicants are observed to be repaid more often than loans made to whites, […]

An economist wrote in, asking why it would make sense to fit Bayesian hierarchical models instead of frequentist random effects.

An economist wrote in, asking why it would make sense to fit Bayesian hierarchical models instead of frequentist random effects. My reply: Short answer is that anything Bayesian can be done non-Bayesianly: just take some summary of the posterior distribution, call it an “estimator,” and there you go. Non-Bayesian can be regularized, it can use […]

The moral hazard of quantitative social science: Causal identification, statistical inference, and policy

A couple people pointed me to this article, “The Moral Hazard of Lifesaving Innovations: Naloxone Access, Opioid Abuse, and Crime,” by Jennifer Doleac and Anita Mukherjee, which begins: The United States is experiencing an epidemic of opioid abuse. In response, many states have increased access to Naloxone, a drug that can save lives when administered […]