In stark contrast to the rest of its peers, the University of Charleston, a private university in West Virginia, recently announced a 22 percent tuition cut for new students for the fall 2012 semester. From a recent press release:
The university is guaranteeing that no undergraduate student will pay more than $19,500 for tuition next year. This is a reduction of $5,500 or 22% from 2011-12 tuition of $25,000. Tuition for new freshmen and undergraduate transfer students will be $19,500. Tuition for returning undergraduates next year will be $25,500, with a guarantee of at least $6,000 in university aid, ensuring that no student will pay more than $19,500 in tuition.
Chances are, if you’ve heard of the Chinese technology giant FoxConn, it’s because it manufactures the iPhone and iPad. Last year, at an iPhone manufacturing complex in South China, there were a number of worker suicides that made news.
In apparent attempt to fix some of its labor issues, Foxconn’s parent company, Taiwan-based Hon Hai Precision Industry, is now making a big push into robots.
The project, which is initially forecast to cost the Taiwan-based Hon Hai Precision Industry Tw$6.7 billion ($223 million), was unveiled Saturday when Terry Gou, chairman of the conglomerate, broke ground for the construction of a research and development unit in Taichung, central Taiwan.
“The investment marks the beginning of Hon Hai’s bid to build an empire of robots,” the Central Taiwan Science Park authorities said in a statement.
Here’s a lesson in economics for OWS. Explain to the “99%” that they are actually in the 5% of richest people on the planet. Then take their wealth and redistribute it to the 95% of the world that is poorer than them. See how they feel about wealth redistribution then.
However you may feel about the sentiment expressed by Tom H., you have to think that his framing skills would be admired by Messrs. Tversky, Kahneman, and Thaler.
This week, Annie Hall economics, charting Greek car sales against its interest rates, 40 percent of toddlers use smartphones or iPads, Levitt answers questions from Holy Cross students, and car makers respond to our growing waistlines.
On Tuesday, Nov. 8, Portland, Maine will hold its first mayoral election in 88 years. (The mayorship previously rotated between city council members.) But it’s going to be unusual for another reason: voters will use a ranked choice system, which means they have to list the 15 candidates in order of preference. An image of the ballot appears below. Here’s the AP’s David Sharpreporting on the complexities:
The ballot is too complicated to be understood by the city’s voting machines, so only first-place votes will be announced on the night of the election, said Caleb Kleppner, vice president of TrueBallot Inc. The final outcome of the race won’t be known until the following day when the ballots are scanned and all of voters’ rankings are extrapolated, Kleppner said.
A new blog post from William H. Frey, senior fellow at the Brookings Institution, takes a look at the migration patterns of American youth, and the cities that attract the “cool” crowd. In the last few years, the rough economy has put the brakes on mobility, which has declined to its lowest levels since World War II. Young adults in particular have stopped moving around. Still, like always, there are those 20 and 30 somethings who remain mobile. But, in recent years their list of destinations has begun to change. Frey writes:
While young people are moving less than before, it is interesting to see where those who did move went. Heading the list are Denver, Houston, Dallas, Seattle, Austin, Washington D.C., and Portland. The top three areas and our nation’s capital, arguably, fared relatively well economically during the recession. But all seven are places where young people can feel connected and have attachments to colleges or universities among highly educated residents.
I like keeping up with things, large and small, as much as the next person.
Or maybe I don’t. That’s what I’m trying to figure out.
As someone who’s done a lot of journalism, I certainly have an appetite for being first with a story. In fact, most of the journalism I’ve written was stuff that no one else was writing about. But there’s a big difference between looking off the beaten path and trying to land a scoop within a beat that 100 other journalists are covering. I was never much into that. I understand that news organizations value the scoop but I do question how valuable such scoops really are — especially these days, when the first-mover often gets drowned out by the 1,000 who follow.
But lately I’ve been thinking about the information flow from the demand side rather than the supply side.
Q While there certainly are downsides, with unattached men getting into trouble and being rowdy, won’t a shortage of females help increase the value and position of women in cultures that have been historically resistant to providing them an equal place in society? In theory, they should be able to demand higher standards during courtship and, once married, the threat of divorce would ensure better behavior on the part of men. Of course, a shortage of workers is one of the economic prerequisites to slavery so I guess it can go both ways. –Mike B
How is California more like Europe than the United States? We can think of a few ways, but one of the most interesting involves the rights of artists. As this recent story in the New York Times points out, in 1976 California passed a law that guarantees artists 5 percent of the profits in a later sale of their artwork. In doing so, California copied France and a number of other nations, in which such profit-sharing with artists is required by law. In the rest of the United States, by contrast, artists have no right to the profits a collector might make when they resell their artwork.
From an economic point of view, the California rule is a little strange. As we discussed in a previous post, if I sell my house and in five years it rises substantially in value (an anachronistic example these days, we recognize), I don’t get a cut of the windfall. A deal is a deal.
The University of Texas System regents have chosen to invest $10 million in a start-up company that provides web-based advising services to university students. Perhaps a good idea, although unlike nearly all other investments of the System’s endowment, this one was made by fiat of the Board of Regents with no consultation of its investment advisors. Interestingly, the start-up is run by a man who was on Gov. Rick Perry’s re-election finance committee and by another whose father was a previous chancellor of the System (with the former chancellor being part-owner of the company).
This is one of the best examples I’ve ever seen of successful rent-seekingin the public sector (although laypeople might use a less felicitous term than rent-seeking). This blog needs a contest for the most outrageous example of this behavior, and this is my entry into that contest. So, dear readers, please share your examples in the comments section.
Freakonomics has reported at length on the human tendency to worry about rare problems that are unlikely to happen versus more common problems that we tend to ignore. And perhaps because of this, we’ve also been in the vanguard of the campaign against drunk walking, which is 8 times more likely to result in your death than drunk driving.
And so a recent story from Christopher Shea at the WSJ Ideas Blog caught our eye, because it so perfectly combines these two obsessions. Shea writes that a razor blade in an apple on Halloween is a myth, and has probably never happened. Pedestrian deaths, however, are four times higher on October 31st than an average day, because so many more people are wandering around outside. We at Freakonomics would like to add that some of those Halloween revelers (the adults at least) are also more likely to be inebriated, which no doubt explains some of the accidents.
A new report from the Institute of Fiscal Studies in the U.K. examines the big difference that a few months can make in the student achievement of young children. Authors Claire Crawford, Lorraine Dearden and Ellen Greaves found (along with several previous studies, like this one and this one) that children born in summer months generally score lower on standardized tests and are seen as “underachievers;” while children born in September and autumn months are more academically and socially successful.
It’s one of the ultimate chicken or egg questions: Does democracy lead to increases in education and income, or do education and higher income lead to democracy? It’s a tricky one, considering that over the last 200 years, they’ve essentially moved in tandem across much of the developed world.
So which is affecting which? A new working paper (full version here) by Fabrice Murtin and Romain Wacziarg attempts to untangle the two to understand whether democracy grows from education and higher income, or vice versa.
I recently had one of the strangest customer service episodes I’ve ever experienced. It took place at Café Bon Appetit in downtown Chicago. A group of twenty of us were eating lunch there. It is one of those places that has many food stations to choose from, then you pay for your food and find a table. There is no table service. It’s a huge restaurant. I don’t think it’s an exaggeration to say that the restaurant can seat 300 people. That is one of the reasons we go there in a big group — there are always plenty of seats.
One of the diners, who is on some sort of vegan, non-gluten health kick, had brought her own lunch. The rest of us had bought our lunch there. We found a table in the nearly completely empty back seating area. About halfway through lunch, the restaurant manager appeared. I assumed it was to thank us for coming and to ask how the food was. It turned out his mission was quite different.
A few years after I learned German, I got the chance to learn French. That experience gave me lots of ideas for why our teaching of many subjects, especially science and mathematics, is so unsuccessful—and for how we can improve our learning.
I studied French in school for five years. However, when I went to France after college, I could barely buy a train ticket. The impetus to try again came a few years later, in the summer of 1993. Our whole family was going to spend two months in Lyon while my father took a sabbatical. The rest of us enrolled in a four-week language course at the Alliance Française.
While still in America, to get more benefit from the language course, I started relearning French. On the recommendation of a friend who is a linguist and mathematician, I got the self-study French course made by Assimil entitled Le Nouveau Français sans Peine (New French With Ease). (Many other self-study courses should also work well. I have not tried them, so I do not have the knowledge to draw out lessons for learning other subjects, which is my main interest here. But to learn about language programs, I recommend the excellent “How to learn any language” site.)
I did one French lesson daily starting from Lesson 1. I read a short, idiomatic dialogue out loud using the pronunciation key, then listened to it on the tape, repeating it sentence by sentence. The lesson finished with 2 minutes of fill-in-the-word exercises using the vocabulary from the dialogue. Each lesson took about 30 minutes. After three months of this preparation, when I landed in France I could converse with random French people on the train.
Ever notice anything strange around town when elections are coming up?
Our latest podcast, “Wildfires, Cops, and Keggers,” looks into the odd by-products of electoral politics — that is, not just which politicians get elected, but what kind of below-the-radar shenanigans happen before (and sometimes after) an election, usually inspired by how an incumbent’s incentives are lined up. Maybe property taxes dropped in the run-up to an election, only to spike once an incumbent had won another term. Maybe more cops and firemen were hired during campaign season.
Given that many of these election-cycle fluctuations occur in less-scrutizined local elections, we want to hear from you any interesting examples you’ve witnessed. Tell us your election stories in the comments below!
The field of forensics has grown by leaps and bounds over the past several years, so much so that decades-old crime cases can sometimes be solved with DNA testing and other modern technology. In an effort to increase case clearance rates (and catch bad guys long gone) police departments have slowly opened more ‘cold case’ units over the last 20 years; a phenomenon that has been documented and dramatized on TV.
In a new RAND paper, researchers Robert C. Davis, Carl Jensen, and Karin E. Kitchens set out to measure the effectiveness of cold case units by posing a simple question, though one that’s rarely asked of police work: What’s the return on investment?
In 2009, the OECD concluded that half the world’s workers (almost 1.8 billion people) were employed in the shadow economy. By 2020, the OECD predicts the shadow economy will employ two-thirds of the world’s workers.
This new economy even has a name: “System D.”
In a new article (accompanying photoessay here) for Foreign Policy, Robert Neuwirth explains:
System D is a slang phrase pirated from French-speaking Africa and the Caribbean. The French have a word that they often use to describe particularly effective and motivated people. They call them débrouillards. To say a man is a débrouillard is to tell people how resourceful and ingenious he is. The former French colonies have sculpted this word to their own social and economic reality. They say that inventive, self-starting, entrepreneurial merchants who are doing business on their own, without registering or being regulated by the bureaucracy and, for the most part, without paying taxes, are part of “l’economie de la débrouillardise.” Or, sweetened for street use, “Systeme D.” This essentially translates as the ingenuity economy, the economy of improvisation and self-reliance, the do-it-yourself, or DIY, economy.
As someone who has written about geoengineering (and been hit with the requisite slime for doing so), I was more than a little surprised to see the results of a survey about the public’s view of geongineering (abstract here; PDF here) by researchers at the University of Calgary, Harvard, and Simon Fraser University, and published in Environmental Research Letters. From the press release:
Research on geoengineering appears to have broad public support, as a new, internationally-representative survey revealed that 72 per cent of respondents approved research into the climate-manipulating technique…. Public awareness of geoengineering is remarkably broad. Eight per cent of the sample were able to provide a correct definition of geoengineering, an increase on previous estimates; however, 45 per cent of the sample correctly defined the alternative term “climate engineering”, adding weight to the argument that “geoengineering” may be misleading and difficult to understand.
In Belarus, the government doesn’t allow trading of its ruble outside a narrow price range, which greatly overvalues the ruble— so there is a price floor on the ruble compared to the euro or dollar. Because of the floor, currency trading had dried up: who would want to sell foreign currencies for grossly overpriced Belarussian rubles??
A friend of one of my students has a website designed to overcome rigidities in this market, sort of a Craigslist for currency. People specify amounts willing to buy or sell, agree to trade at some price and arrange a meeting place (often one of the empty currency-trading booths!). When they meet, trade nominally occurs at the official price floor, making the transaction nominally legal; but the person selling rubles makes side payments to the buyer to lower the price sufficiently so that the trade actually takes place at the equilibrium price.
One more way in which technology helps markets circumvent imperfections and rigidities.
Now, Lindstrom, returns with his answers to a few of them. As always thanks for every one who participated.
Q One more question occurred to me: Marketing is intended to persuade us to buy products, but it also serves another latent function which is to educate us about new products, about differences between products, or about the products themselves. Given this educational benefit, among other benefits, do you think marketing is a net good or a net bad for society on the whole? – NZ
Our latest Freakonomics podcast, “Misadventures in Baby-Making,” includes a discussion of how sex-selective abortion has led to 160 million missing females in Asia. Closer to home, however, researchers Nicholas J. Sanders and Charles F. Stoeckerare focusing on a different problem: missing baby boys. In an effort to evaluate the effects of environmental policy on fetal health outcomes, the authors examine the “gender ratio of live births.”
Back in 2007, we had a lively debate around a series of excerpts that Cornell economist Robert Frank contributed to the Freakonomics blog. We’re hoping an excerpt from his latest book, The Darwin Economy: Liberty, Competition, and the Common Good, will spawn a similar conversation.
In it, Frank makes a rather bold prediction: within the next century, Charles Darwin, the naturalist, will unseat Adam Smith as the intellectual founder of economics. Frank believes Darwin’s insights into the nature of competition describe our current economic reality far better than Smith’s invisible hand. Frank argues that we live in a world where competition doesn’t channel self-interest for the common good, but rather into unbridled “arms races” where relative position is pursued above all else: who has the biggest bank? The biggest house? These races rarely benefit group interests. In fact, Frank argues, they have done enormous harm to our economy and provided no lasting advantages or benefits, since gains tend to be relative and offsetting.
In the third segment of “Football Freakonomics,” Dubner examines how impressive stats in the NFL are often indicative of bad results. For example, we all want a quarterback who throws for big yardage. But for all the times a quarterback threw for 400 yards or more last season, how many of those games did his team actually win?
This fall, Murphy has been working with the NBA players union in its negotiations with team owners over the NBA lockout. Steve Aschburner of NBA.com sat down with Murphy for a lengthy and very interesting Q&A on the tricky economics of the NBA, and what role Murphy is playing. Here are a few highlights:
I’m back to inviting readers to submit quotations whose origins they want me to try to trace, using my book, The Yale Book of Quotations, and my more recent researches.
Groatman asked:
“What is the saying that says something like ‘balance your accounts and if you’re groat over, happiness, and if you’re a groat under, misery’ and who said it and when and where? I believe Ben Franklin’s Poor Richard’s Almanac had a later similar version of this aphorism, but, if I remember correctly, he substituted a ‘penny’ and didn’t use the word ‘groat.’ What was it he said exactly?”
I’m not aware of Franklin saying something like this. The well-known version is by Charles Dickens, given by the Yale Book of Quotations as follows:
“‘My other piece of advice, Copperfield,’ said Mr. Micawber, ‘you know. Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.” David Copperfield (1850)
Do any readers have any other phrases or quotations whose origins they would like me to attempt to trace?
In honor of the world’s estimated population hitting seven billion next week, Foreign Policy has compiled a list (with beautiful photographs) of the world’s seven fastest-growing cities. China and India dominate the list, but a few of the entries may surprise you. For example, number five is Kabul, Afghanistan.
“One of the oldest cities in the world, it is growing rapidly despite — or perhaps because of — the security concerns that plague Afghanistan,” writes Kedar Pavgi. “The city has 6 million inhabitants, and continues to expand at 4.74 percent a year. But the city faces serious resource shortages. By 2050, the city will need six times the amount of water it currently uses in order to quench the thirst of its inhabitants.
The New York Timesrecently reported that using Depo-Provera, one of the most popular contraceptives in eastern and southern Africa, may increase a person’s risk of transmitting HIV. I fear this is a case for The Guardian‘s Ben Goldacre… where a study gets a bit (understatement) too much spin in the media. I first became aware of this while in Uganda and saw the following headline in the local paper: “The injectable contraceptive that could double the risk of women contracting HIV.” That sure sounds like the shot itself does something. Or could this instead be a by-product of behavior change? Huge difference if you are deciding what birth control to use!
The Times article cited a study recently published in The Lancet, which showed that women using hormonal contraception—primarily the injection more commonly known in the U.S. by its brand name, Depo-Provera—were twice as likely to acquire HIV from their infected partners, and twice as likely to transmit the virus to their HIV-negative partners.
At Freakonomics, we’re all about finding cheap, easy solutions to life’s big problems. And judging by the results of a new study published in The Lancet, a rather large one just came down the pike. Turns out that aspirin may be one of the most effective measures to combat colon cancer. The study found that taking two aspirin pills a day for two years reduced the risk of colorectal cancer by 63 percent in a group of 861 people who have Lynch syndrome, and are therefore at a high risk for the disease.
Though there have been previous studies that suggest aspirin may effectively reduce the risk of cancer (like this one from 2010), according to the BBC, this most recent study was the first randomized control trial specifically for aspirin and cancer to prove it. So, while we’ve spent what probably amounts to tens of billions of dollars in pharmaceutical R&D trying to come up with an effective cancer drug, one of the best methods may have been already sitting in our medicine cabinet, at just a few bucks a bottle.
This week, Smith College Logic professors prank the whole campus; how much of the world’s energy use goes to the Internet? Maps showing the geographic prices of weed, and unbanked America; out of 7 billion, which number human are you? And, why are Japanese women paying to have their teeth messed up?
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