Freakonomics

Robert Bradford reviews:

Freakonomics by Steven D. Levitt and Stephen J. Dubner

Steven Levitt is a young Chicago economist who has become well known by asking some very interesting questions. In Freakonomics, Levitt asks such questions as "Why do most crack dealers live with their mothers?" and "Do teachers help their students cheat on standardized tests?", and uses some of the most important statistical tools in the economists' toolbox to answer them.

Since Levitt seems more interested in asking interesting questions than pandering to a particular political ideology, most readers (conservative AND liberal) will find something to disagree with in the chapters of this book. Particularly disturbing are the chapters dealing with the decline in crime in the 1990's and the correlation between race, income and academic success. Sometimes it will be important to read Levitt's assertions very carefully, as his exploration of the nature of causality in these areas is easily misinterpreted.

While the answers to some of Levitt's fascinating questions may not be dead on, the way he asks the questions and goes about answering them is both interesting and informative. Levitt does an excellent job of explaining concepts like correlation and causality, while using his unusual topics to make the explanations more interesting and memorable.

While some economics books may offer more in the way of usable information, Freakonomics will probably offer you a different way of asking questions about the economy, your industry and your markets. At the very least, it should improve your grasp of some of the statistical methods economists use to provide some of their answers, and some interesting fodder for dinner party conversations.

Robert Bradford is President of Center for Simplified Strategic Planning, Inc. He can be reached via e-mail at

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