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Archive of posts filed under the Economics category.

How does a Nobel-prize-winning economist become a victim of bog-standard selection bias?

Someone who wishes to remain anonymous writes in with a story: Linking to a new paper by Jorge Luis García, James J. Heckman, and Anna L. Ziff, an economist Sue Dynarski makes this “joke” on facebook—or maybe it’s not a joke: How does one adjust standard errors to account for the fact that N of […]

Hey—here are some tools in R and Stan to designing more effective clinical trials! How cool is that?

In statistical work, design and data analysis are often considered separately. Sometimes we do all sorts of modeling and planning in the design stage, only to analyze data using simple comparisons. Other times, we design our studies casually, even thoughtlessly, and then try to salvage what we can using elaborate data analyses. It would be […]

Why they aren’t behavioral economists: Three sociologists give their take on “mental accounting”

Nina Bandelj, Fred Wherry, and Viviana Zelizer write: Rather than retreat to disciplinary corners, let us begin by affirming our respect for the generative work undertaken across a variety of disciplines. We’re all talking money, so it is helpful to specify what’s similar and what’s different when we do. . . . In this post, […]

Statisticians and economists agree: We should learn from data by “generating and revising models, hypotheses, and data analyzed in response to surprising findings.” (That’s what Bayesian data analysis is all about.)

Kevin Lewis points us to this article by economist James Heckman and statistician Burton Singer, who write: All analysts approach data with preconceptions. The data never speak for themselves. Sometimes preconceptions are encoded in precise models. Sometimes they are just intuitions that analysts seek to confirm and solidify. A central question is how to revise […]

Turks need money after expensive weddings

Josh Miller points to this: “We offered mTurk workers $0.50–$0.75 to complete the survey.” Why would someone who spent $20k+ on their wedding be filling out a survey on mTurk? Maybe things didn’t turn out so well? Josh continues: I didn’t read the paper or the empirical section, just the abstract and I quickly looked […]

Capitalist science: The solution to the replication crisis?

Bruce Knuteson pointed me to this article, which begins: The solution to science’s replication crisis is a new ecosystem in which scientists sell what they learn from their research. In each pairwise transaction, the information seller makes (loses) money if he turns out to be correct (incorrect). Responsibility for the determination of correctness is delegated, […]

Incentives Matter (Congress and Wall Street edition)

[cat picture] Thomas Ferguson sends along this paper. From the summary: Social scientists have traditionally struggled to identify clear links between political spending and congressional voting, and many journalists have embraced their skepticism. A giant stumbling block has been the challenge of measuring the labyrinthine ways money flows from investors, firms, and industries to particular […]

“Developers Who Use Spaces Make More Money Than Those Who Use Tabs”

Rudy Malka writes: I think you’ll enjoy this nice piece of pop regression by David Robinson: developers who use spaces make more money than those who use tabs. I’d like to know your opinion about it. At the above link, Robinson discusses a survey that allows him to compare salaries of software developers who use […]

Where’d the $2500 come from?

Brad Buchsbaum writes: Sometimes I read the New York Times “Well” articles on science and health. It’s a mixed bag, sometimes it’s quite good and sometimes not. I came across this yesterday: What’s the Value of Exercise? $2,500 For people still struggling to make time for exercise, a new study offers a strong incentive: You’ll […]

Financial anomalies are contingent on being unknown

Jonathan Falk points us to this article by Kewei Hou, Chen Xue, and Lu Zhang, who write: In retrospect, the anomalies literature is a prime target for p-hacking. First, for decades, the literature is purely empirical in nature, with little theoretical guidance. Second, with trillions of dollars invested in anomalies-based strategies in the U.S.market alone, […]

Try asking someone in the real estate business

This came in the email: Dear Professor Gelman, Hi. My name is ** and I am a 5th grade student at ** School in **, NY. I am in Mr. **’s class and we are working on our graduating project called Capstone! I am studying how how President Trump’s business life affects his job as […]

All the things we have to do that we don’t really need to do: The social cost of junk science

I’ve been thinking a lot about junk science lately. Some people have said it’s counterproductive or rude of me to keep talking about the same few examples (actually I think we have about 15 or so examples that come up again and again), so let me just speak generically about the sort of scientific claim […]

Mike Bostock graphs federal income tax brackets and tax rates, and I connect to some general principles of statistical graphics

Mike “d3” Bostock writes: Regarding the Vox graph on federal tax brackets, here is a quick-and-dirty visualization of effective tax rates for a given taxable income and year. However, there is a big caveat: estimating the effective tax rate based on actual income is much harder since it depends on the claimed deductions. This could […]

Taxes and data visualization

Nadia Hassan writes: Vox has a graph of tax rates over time. Their visualizations do convey that tax rates for high earners have declined over time and tax brackets are fewer now, but it seems like there are more appealing and intuitive ways to display that. I agree. This visualization reminds me a lot of […]

San Francisco housing debate: A yimby responds

Phil Price recently wrote two much-argued-about posts here and here on the yimby (“yes in my backyard”) movement in San Francisco. One of the people disagreeing with him is Sonja Trauss, who writes: Phil makes a pretty basic mistake of reasoning in his post, namely, that the high income residents of the proposed new housing […]

Take two on Laura Arnold’s TEDx talk.

This post is by Keith. In this post I try to be more concise and direct about what I found of value in Laura Arnold’s TEDx talk that I recently blogged about here. Primarily it was the disclosure from someone who could afford to buy good evidence (and experts to assess it) that they did not think good […]

NIMBYs and economic theories: Sorry / Not Sorry

This post is not by Andrew. This post is by Phil. A few days ago I posted What’s the deal with the YIMBYs?  In the rest of this post, I assume you have read that one. I plan to post a follow-up in a month or two when I have had time to learn more, […]

Higher credence for the masses: From a Ted talk?

The Four Most Dangerous Words? A New Study Shows | Laura Arnold | TEDxPennsylvaniaAvenue I brought this link forward in some comments but wanted to promote it to a post as I think its important and I know many folks just do not read comments.

What’s the deal with the YIMBYs?

This post is not by Andrew. It is by Phil. There’s at least one thing people in San Francisco seem to agree on: the rent is too damn high. The median rent is between about $3000 and $3500 per month…for a one-bedroom apartment. High-tech workers and upper-echelon businesspeople can afford a place, but baristas and […]

Reality meets the DeLilloverse

From 2009: “They thought ASU’s brand was too strong to compete with. Incarnate Word is now part of the Communiversity @ Surprise, a newly opened one-stop learning center for higher education in the northwest Valley.” I guess my statistics textbooks probably read like parodies of statistics textbooks, so from that perspective it makes sense that […]