Aaron YelowitzApplied economist · University of Kentucky
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Historical

ECO 499 · Fall 2011

Economics Seminar

Historical syllabus; policies and dates reflect this term.

Archived syllabus. Policies, dates, assignments, and readings reflect Fall 2011.

Course information

Economics 499-003: Freakonomics University of Kentucky Fall Semester, 2011 URL: http://gatton.uky.edu/faculty/yelowitz/499/fall2011.html (historical link unavailable)

Lectures MWF, 12:00-12:50 pm, B&E 214.

Relevant info on me Professor Aaron Yelowitz Office: 335W Business and Economics Building Office hours: Wednesday, 2-4 pm, and by appointment. Email: aaron@uky.edu

My background: I am an associate professor in the economics department; I have been at UK since 2001. Before I joined UK, I was an assistant professor in the economics department at UCLA, from 1994 to 2001. I received my Ph.D. in economics from MIT in 1994, and my B.A. from UC Santa Barbara in 1990. My research interests have focused on low-income households – especially concerning the housing and health insurance decisions that these groups are faced with.

Enrolling in this Class

If you want to enroll in this class, you need to talk to Debbie Wheeler in the economics department; she handles that. Due to the nature of ECO 499, class size is limited. All prerequisites will be strictly enforced.

Course Description

and Expectations This course is largely an in-depth study of the findings in the popular books “Freakonomics” and “SuperFreakonomics” by Steven Levitt and Stephen Dubner. These popular books are clearly a start into a discussion of the issues they raise, but the goal of this course is far more ambitious. We will explore some of the peer-reviewed academic papers that form that basis for the books. In particular, we will examine issues related to data collection, econometrics, empirical analysis and interpretation far more in depth than is contained in the books. The topics we will explore include real estate, criminal activities, education, abortion, popular culture and climate change. Please note that simply reading the popular books, but not the peer-reviewed papers, will be insufficient to pass this class.

Prerequisites

ECO 391, ECO 401, and ECO 402 or equivalent. All prerequisites will be enforced, and the class is restricted to upper-division B&E Economics majors and A&S Economics majors.

Required Textbooks

and required supplemental readings Steven D. Levitt and Stephen J. Dubner, Freakonomics, (HarperCollins, 2009, ISBN 9780060731335).

Steven D. Levitt and Stephen J. Dubner, SuperFreakonomics, 1st edition (HarperCollins, 2011, ISBN 9780060889586).

Feel free to purchase any edition – new or used – of these books. The basic lessons and intuition – in “plain English” – don’t change much from one edition to another. More importantly, there will also

be assigned readings from academic papers. Some of the class lectures will be presented in PowerPoint; these slides will be made available on the class website. You may also be required to watch some video lectures (mainly of Steven Levitt on YouTube), or read articles in the popular press. All of this material will be made available to you online. For those who have difficulty, I will be happy to assist you.

The Internet

The web site will have links to download the PowerPoint slides and occasionally supplemental lecture notes. In addition, I will sometimes send announcements by email.

Preparing for Class

We will generally follow the order of topics on the syllabus. The best way of preparing for the class is to read the textbook chapters ahead of time, as well as any materials that summarize a study. In terms of the academic studies themselves, you should attempt to read through them ahead of time, but there is no expectation that all parts of the study will be completely understandable to you.

Grading

  1. The final is on Wednesday, December 14, 2011, at 10:30 am. It will count for 40% of your grade. It lasts 2 hours.
  2. You will be given one midterm, in class, on Wednesday, October 19th. It will count for 35% of your grade. It lasts 50 minutes.
  3. You will be assigned a paper topic during the semester (details will be given later in the semester). It will count for 25% of your grade, and will be due Monday, November 28, 2011, in class.
  4. There are no attendance requirements for this course. However, if you have an unexcused absence, or an excused absence without appropriate documentation, you will receive zero credit for any assignments that are due. You can understand more about absences at: http://www.uky.edu/Ombud/policies.php.

University Holidays / Cancelled Classes

Class will be cancelled on Friday, September 23, 2011.

According to the university calendar, there will be no class on Monday, September 5, 2011 (Labor Day) or November 23-25, 2011 (Thanksgiving).

Course outline and readings

I. Introduction

A. Warm-Up Papers

  1. Steven D. Levitt and Stephen J. Dubner, Freakonomics, “Introduction: The Hidden Side of Everything.”
  2. Steven D. Levitt and Stephen J. Dubner, Super Freakonomics, “Introduction: Putting The Freak in Economics.”

II. Real Estate

A. “Warm-up” Papers and Videos

  1. Steven D. Levitt and Stephen J. Dubner, Freakonomics, Chapter 2, “How is the Ku Klux Klan Like a Group of Real Estate Agents?”
  2. Stephen J. Dubner and Steven D. Levitt, “Endangered Species,” New York Times Magazine, March 5, 2006.
  3. Stephen J. Dubner, “The Probability That a Real Estate Agent Is Cheating You (and Other Riddles of Modern Life),” New York Times Magazine, August 3, 2003.
  4. Video: “Freakonomics Asks: Does Your Real Estate Agent Have Your Best Interest In Mind?” http://www.youtube.com/watch?v=17jO_w6f8Ck.

B. Academic Studies

  1. Steven D. Levitt and Chad Syverson, “Market Distortions When Agents Are Better Informed: The Value of Information in Real Estate Transactions,” The Review of Economics and Statistics, November 2008.
  2. Chang-Tai Hsieh and Enrico Moretti, “Can Free Entry Be Inefficient? Fixed Commissions and Social Waste in the Real Estate Industry,” Journal of Political Economy, 111(5), 2003.
  3. Jason Beck, Frank Scott, and Aaron Yelowitz, “Concentration and Market Structure in Local Real Estate Markets,” University of Kentucky Working Paper, April, 2011, forthcoming Real Estate Economics, 2012.
  4. RC Rutherford, TM Springer, and A Yavas, “Conflicts Between Principals and Agents: Evidence From Residential Brokerages,” Journal of Financial Economics, 2005, 627-665.
  5. Igal Hendel, Aviv Nevo, and François Ortalo-Magné, “The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com,” American Economic Review 2009, 99(5), 1878–1898
  6. Steven D. Levitt and Chad Syverson, “Antitrust Implications of Outcomes When Home Sellers Use Flat-Fee Real Estate Agents,” Brookings-Wharton Papers on Urban Affairs, 2008, pp. 47-93 (and comments)

III. Criminal Activities

A. “Warm-up” Papers and Videos

  1. Steven D. Levitt and Stephen J. Dubner, Freakonomics, Chapter 3, “Why Do Drug Dealers Still Live with Their Moms?”
  2. Steven D. Levitt and Stephen J. Dubner, Super Freakonomics, Chapter 1, “How Is A Street Prostitute Like A Department Store Santa?”
  3. Stephen J. Dubner and Steven D. Levitt, “The Economy of Desire,” New York Times Magazine, December 11, 2005.
  4. Video: “Steven Levitt: Why Do Crack Dealers Still Live With Their Moms?” http://www.youtube.com/watch?v=5UGC2nLnaes
  5. Video: “John Stossel: Freakonomics! (1/6) – How Is a Beauty Pageant Contestant Like a Crack Dealer?” http://www.youtube.com/watch?v=pLIgErlTBxg

B. Academic Studies

  1. Steven D. Levitt and Sudhir Alladi Venkatesh, “An Economic Analysis of a Drug-Selling Gang's Finances,” The Quarterly Journal of Economics, 115(3), August 2000, 755-789.
  2. Steven D. Levitt and Sudhir A. Venkatesh, “An Empirical Analysis of Street-Level Prostitution,” University of Chicago Working Paper, September 2007.

IV. Education: Teacher Cheating

A. “Warm-up” Papers and Videos

  1. Steven D. Levitt and Stephen J. Dubner, Freakonomics, Chapter 1, “What Do Schoolteachers and Sumo Wrestlers Have In Common?”
  2. “Do Incentives Cause Teachers to Cheat?” NBER Digest, July 2003.
  3. Heather Vogell, “Investigation into APS cheating finds unethical behavior across every level”, The Atlanta Journal-Constitution, July 6, 2011.
  4. “Probe Finds Widespread Cheating in Atlanta Schools,” Wall Street Journal, July 5, 2011.
  5. Video “Stossel – How Is A Black, Straight A Student Like A Celebrity”, http://www.youtube.com/watch?v=y_PHArwyFfk

B. Academic Studies

  1. Brian A. Jacob and Steven D. Levitt, “Rotten Apples: An Investigation of the Prevalence and Predictors of Teacher Cheating,” The Quarterly Journal of Economics, 118(3), August 2003, 843-877.
  2. Brian A. Jacob and Steven D. Levitt, “Catching Cheating Teachers: The Results of an Unusual Experiment in Implementing Theory,” Brookings-Wharton Papers on Urban Affairs, 2003, 185-220. Also, comments by Philip J. Cook and Bruce Sacerdote.

V. Abortion

A. “Warm-up” Papers and Videos

  1. Steven D. Levitt and Stephen J. Dubner, Freakonomics, Chapter 4, “Where Have All The Criminals Gone?”
  2. “Oops-onomics: Did Steven Levitt, author of ‘Freakonomics’, get his most notorious paper wrong?” The Economist, December 1, 2005.
  3. Jon E. Hilsenrath, “Freakonomics Abortion Research is Faulted by Pair of Economists,” Wall Street Journal, November 28, 2005.
  4. Video: “John Stossel: Freakonomics! (Part 4/6) - How is an Abortion Like a Prison?” http://www.youtube.com/watch?v=qgUGEP2zMns

B. Academic Studies

  1. John J. Donohue III and Steven D. Levitt, “The Impact of Legalized Abortion on Crime,”” The Quarterly Journal of Economics, May 2001.
  2. Ted Joyce, “Did Legalized Abortion Lower Crime?” Journal of Human Resources, 2003, 38(1), 1-37.
  3. John J. Donohue III and Steven D. Levitt, “Further Evidence that Legalized Abortion Lowered Crime: A Reply to Joyce,” Journal of Human Resources 39(1).
  4. Christopher L. Foote and Christopher F. Goetz, “The Impact of Legalized Abortion on Crime: Comment,” The Quarterly Journal of Economics, February 2008
  5. John J. Donohue III and Steven D. Levitt, "Measurement Error, Legalized Abortion, and the Decline in Crime: A Response to Foote and Goetz," The Quarterly Journal of Economics, February 2008.
  6. Ted Joyce, “A Simple Test of Abortion and Crime,” The Review of Economics and Statistics, February 2009, 91(1): 112–123.

VI. Popular Culture

A. “Warm-up” Papers and Videos

  1. Steven D. Levitt and Stephen J. Dubner, Freakonomics, Chapter 5, “What Makes a Perfect Parent?”
  2. Steven D. Levitt and Stephen J. Dubner, Freakonomics, Chapter 6, “Perfect Parenting, Part II: Would a Roshanda by Any Other Name Smell as Sweet?”
  3. Steven D. Levitt and Stephen J. Dubner, Super Freakonomics, Chapter 3, “Unbelievable Stories About Apathy and Altruism.”
  4. Steven D. Levitt and Stephen J. Dubner, “A Roshanda by Any Other Name: How Do Babies With Super-Black Names Fare?” Slate, April 11, 2005 http://www.slate.com/id/2116449/ and Steven D. Levitt and Stephen J. Dubner, “Trading Up: Where Do Baby Names Come From?” Slate, April 12, 2005, http://www.slate.com/id/2116505/
  5. Video “Stossel – Freakonomics! (Part 3/6) How Is A Straight A Black Student Like A Celebrity?” http://www.youtube.com/watch?v=y_PHArwyFfk
  6. Video “Freakonomics Explores Parents’ Motives When Naming their Babies” http://www.youtube.com/watch?v=Zyc4iswrCL4
  7. Video “Freakonomics Asks: Can Your Given Name Keep You From Getting A Job?” http://www.youtube.com/watch?v=goGe0CbARDE

B. Academic Studies

  1. Roland G. Fryer Jr. and Steven D. Levitt, “The Causes and Consequences of Distinctly Black Names,” The Quarterly Journal of Economics, August 2004.
  2. Marianne Bertrand and Sendhil Mullainathan, “Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination, The American Economic Review, September 2004.
  3. David N. Figlio, “Boys Named Sure: Disruptive Children and Their Peers” Education Finance and Policy, Fall 2007, 2(4), 376-394. NBER Working Paper 11277.’
  4. David Card and Gordon B. Dahl, “Family Violence and Football: The Effect of Unexpected Emotional Cues on Violent Behavior,” The Quarterly Journal of Economics, 2011, 103-143.
  5. Matthew Gentzkow and Jesse M. Shapiro, “Preschool Television Viewing and Adolescent Test Scores: Historical Evidence From the Coleman Study,” The Quarterly Journal of Economics, February 2008.
  6. Gordon Dahl and Stefano DellaVigna, “Does Movie Violence Increase Violent Crime?” The Quarterly Journal of Economics (2009) 124 (2): 677-734.

VII. Climate Change and Geoengineering

A. “Warm-up” Papers and Videos

  1. Steven D. Levitt and Stephen J. Dubner, Super Freakonomics, “What Do Al Gore and Mount Pinatubo Have In Common?”
  2. Video: “Freakonomics: Three Geoengineering Solutions to Global Warming”, http://www.youtube.com/watch?v=6RsrRpjAGi8
  3. “The Cooling World,” Newsweek, April 28, 1975.

B. Academic Studies

  1. “The Geoengineering Gambit,” Technology Review, January/February 2010.
  2. David W. Keith, Edward Parson, and M. Granger Morgan, “Research on Global Sun Block Needed Now”, Nature, January 28, 2010.
  3. Jason J. Blackstock and Jane C.S. Long, “The Politics of Geoengineering”, Science, January 29, 2010.