Since its inception in 1944, the World Bank, a multilateral organization charged with financing the development of poor nations, has been led by macroeconomists, bankers, and government insiders. The White House’s 2012 nomination of President Jim Yong Kim — a physician, anthropologist, and academic who used to advocate dismantling the Bank — broke the mold. He is the focus of our latest Freakonomics Radio podcast, “Hacking the World Bank.” (You can subscribe to the podcast at iTunes or elsewhere, get the RSS feed, or listen via the media player above. You can also read the transcript, which includes credits for the music you’ll hear in the episode.)
In less than three years, Kim has overhauled the Bank and laid out ambitious goals — including a 2030 deadline to rescue the more than 1 billion people who live in extreme poverty. Kim is also — along with the Bank’s chief economist Kaushik Basu — eager to apply the insights of behavioral economics to development policy. That is the focus of Kim’s conversation today with Stephen Dubner. Read More »
How to Think About Money, Choose Your Hometown, and Buy an Electric Toothbrush: A New Freakonomics Radio Podcast
Our latest podcast is called “How to Think About Money, Choose Your Hometown, and Buy an Electric Toothbrush.” (You can download/subscribe at iTunes, get the RSS feed, or listen via the media player in the post. You can also read the transcript below; it includes credits for the music you’ll hear in the episode.) It’s another installment of our FREAK-quently Asked Questions, in which Stephen Dubner and Steve Levitt answer questions from you, our readers and listeners.
Steve Reda, a 22-year-old in the Washington, D.C., area, asks if kids today are more careful using credit as opposed to cash. (It’s a question that makes Dubner recall his salad days, back when he fell in love with economics and the “mental accounting” research done by Richard Thaler, Daniel Kahneman and Amos Tversky.) This leads to a conversation about spending in general, which leads to Levitt’s counterintuitive advice for the youth of today (advice passed down from Milton Friedman to José Scheinkman and on to Levitt): Read More »
Rutgers University fired Mike Rice – the head basketball coach – last Wednesday. This firing came about after ESPN released a video that showed Rice abusing his players. Such a video had already been seen by Rice’s boss at Rutgers in November, but until the video was shown to the public, Rutgers did not feel compelled to fire Rice.
The thing that people don’t want to hear, but which is true, is that this is probably closer to the norm than not.
Shirley goes on to note that he doesn’t think many coaches are actually hitting players. But he does note that coaches do tend to have a certain approach in conveying information to players (an approach Shirley describes in the interview).
Is this general approach to coaching effective? To date, I am not aware of any study of the effectiveness of college coaching. A study I co-authored with Mike Leeds, Eva Marikova Leeds, and Mike Mondello and published in the International Journal of Sport Finance (full PDF here) looked at 62 NBA coaches across thirty years of data. Across this sample, only 14 coaches were found to have a statistically significant and positive impact on player performance. So most NBA coaches do not appear to make their players more productive. Read More »
Our latest Freakonomics Radio podcast is called “100 Ways to Fight Obesity.” (You can subscribe at iTunes, get the RSS feed, or listen via the media player above. You can also read the transcript; it includes credits for the music you’ll hear in the episode.)
Steve Levitt runs a consulting firm called The Greatest Good. It is occasionally hired by a philanthropist or foundation to look into societal problems. That’s what happened recently, when the Robert Wood Johnson Foundation asked The Greatest Good to put together a brainstorming session on childhood obesity. Stephen Dubner moderated the event. In this podcast, you get to be a fly on the wall as a dozen participants explore the biological, behavioral, political and economic angles of obesity. Read More »
Nobel laureate and frequent Freakonomics visitor Daniel Kahneman (author of Thinking, Fast and Slow) has written an open letter to psychologists who work on social priming, calling for them “to restore the credibility of their field by creating a replication ring to check each others’ results.” Here’s an excerpt:
My reason for writing this letter is that I see a train wreck looming. I expect the first victims to be young people on the job market. Being associated with a controversial and suspicious field will put them at a severe disadvantage in the competition for positions. Because of the high visibility of the issue, you may already expect the coming crop of graduates to encounter problems. Another reason for writing is that I am old enough to remember two fields that went into a prolonged eclipse after similar outsider attacks on the replicability of findings: subliminal perception and dissonance reduction.
(HT: BPS Research Digest)
When it comes to politics and media, the left argues that the right is more biased than the left while the right argues that the left is more biased than the right. Who’s right?
That’s what we try to answer in our latest podcast, “How Biased Is Your Media?” (You can download/subscribe at iTunes, get the RSS feed, listen live via the media player above, or read the transcript below.) In a way, this episode is a follow-up to a podcast we put out a few months ago called “The Truth Is Out There, Isn’t It?,” which examined how we choose to believe what we believe about a variety of important issues. In this episode, we apply that same idea in a small-bore fashion, going after media bias. Read More »
We recently put out a podcast called “The Truth Is Out There … Isn’t It?” about how people decide what to believe about everything from global warming and nuclear risk to UFO’s. It was inspired by the research of Dan Kahan and his colleagues at the Cultural Cognition Project; they have found that we systematically filter our beliefs through our personal and political filters. In other words, we allow our biases to influence what we think about theoretically non-ideological issues, but we aren’t aware of that influence. Read More »
The rogue trader is a recurring character in the story of finance over the last 20 years. This is the guy who makes secret, unauthorized bets with his bank’s money, driven by some seeming combination of inadequacy and a huge appetite for risk, and abetted at times by an amazing lack of internal controls.
The deeper he goes, the harder he has to work to conceal his deception until one day, it inevitably comes crashing down. The bank loses billions, the trader (sometimes) goes to jail. The story is repeated every several years. The latest version broke in September when UBS announced it had lost more than $2 billion as a result of rogue trader Kweku Adoboli.
In his new e-book, How to Be a Rogue Trader, Financial Times columnist John Gapper explains why this story has become so familiar over the years. As he puts it, the rogue trader is a species of sorts within the world of finance, a special breed with certain behaviors and characteristics that are consistent through time. Gapper delves into evolutionary biology and the research of Daniel Kahneman to better understand the nature of men like Nick Leeson, Joe Jett, and Jerome Kerviel. Read More »