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Archive of posts filed under the Economics category.

“Seeding trials”: medical marketing disguised as science

Paul Alper points to this horrifying news article by Mary Chris Jaklevic, “how a medical device ‘seeding trial’ disguised marketing as science.” I’d never heard of “seeding trials” before. Here’s Jaklevic: As a new line of hip implants was about to be launched in 2000, a stunning email went out from the manufacturer’s marketing department. […]

How dumb do you have to be…

I (Phil) just read an article about Apple. Here’s the last sentence: “Apple has beaten earnings expectations in every quarter but one since March 2013.” [Note added a week later: on July 31 Apple reported earnings for the fiscal third quarter.  Earnings per share was $2.34 vs. the ‘consensus estimate’ of $2.18, according to Thomson Reuters.]  

Journals and refereeing: toward a new equilibrium

As we’ve discussed before (see also here), one of the difficulties of moving from our current system of review of scientific journal articles, to a new model of post-publication review, is that any major change seems likely to break the current “gift economy” system in which thousands of scientists put in millions of hours providing […]

Data-based ways of getting a job

Bart Turczynski writes: I read the following blog with a lot of excitement: Then I reread it and paid attention to the graphs and models (which don’t seem to be actual models, but rather, well, lines.) The story makes sense, but the science part is questionable (or at least unclear.) Perhaps you’d like to have […]

The persistence of bad reporting and the reluctance of people to criticize it

Mark Palko pointed to a bit of puff-piece journalism on the tech entrepreneur Elon Musk that was so extreme that it read as a possible parody, and I wrote, “it could just be as simple as that [author Neil] Strauss decided that a pure puff piece would give him access to write a future Musk […]

The Ponzi threshold and the Armstrong principle

Mark Palko writes of the Ponzi threshold: “sometimes overhyped companies that start out with viable business plans see their valuation become so inflated that, in order to meet and sustain investor expectations, they have to come up with new and increasingly fantastic longshot schemes, anything that sounds like it might possibly pay off with lottery […]

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: