//ZDS// FWD [forteana] The Probability That a Real-Estate Agent Is Cheating You (and Other Riddles of Modern Life)

From: Terry W. Colvin (fortean1@mindspring.com)
Date: Mon Aug 04 2003 - 19:01:04 MDT

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    This is a corrected copy...

    "Email Stripper" chopped off a few paragraphs. - TWC

    //ZDS// FWD (forteana) The Probability That a Real-Estate Agent Is Cheating
    You (and Other Riddles of Modern Life)

    > August 3, 2003
    > By STEPHEN J. DUBNER
    >
    > The most brilliant young economist in America -- the one so
    > deemed, at least, by a jury of his elders -- brakes to a
    > stop at a traffic light on Chicago's south side. It is a
    > sunny day in mid-June. He drives an aging green Chevy
    > Cavalier with a dusty dashboard and a window that doesn't
    > quite shut, producing a dull roar at highway speeds.
    >
    > But the car is quiet for now, as are the noontime streets:
    > gas stations, boundless concrete, brick buildings with
    > plywood windows.
    >
    > An elderly homeless man approaches. It says he is homeless
    > right on his sign, which also asks for money. He wears a
    > torn jacket, too heavy for the warm day, and a grimy red
    > baseball cap.
    >
    > The economist doesn't lock his doors or inch the car
    > forward. Nor does he go scrounging for spare change. He
    > just watches, as if through one-way glass. After a while,
    > the homeless man moves along.
    >
    > ''He had nice headphones,'' says the economist, still
    > watching in the rearview mirror. ''Well, nicer than the
    > ones I have. Otherwise, it doesn't look like he has many
    > assets.''
    >
    >
    > Steven Levitt tends to see things differently than the
    > average person. Differently, too, than the average
    > economist. This is either a wonderful trait or a troubling
    > one, depending on how you feel about economists. The
    > average economist is known to wax oracularly about any and
    > all monetary issues. But if you were to ask Levitt his
    > opinion of some standard economic matter, he would probably
    > swipe the hair from his eyes and plead ignorance. ''I gave
    > up a long time ago pretending that I knew stuff I didn't
    > know,'' he says. ''I mean, I just -- I just don't know very
    > much about the field of economics. I'm not good at math, I
    > don't know a lot of econometrics, and I also don't know how
    > to do theory. If you ask me about whether the stock
    > market's going to go up or down, if you ask me whether the
    > economy's going to grow or shrink, if you ask me whether
    > deflation's good or bad, if you ask me about taxes -- I
    > mean, it would be total fakery if I said I knew anything
    > about any of those things.''
    >
    > In Levitt's view, economics is a science with excellent
    > tools for gaining answers but a serious shortage of
    > interesting questions. His particular gift is the ability
    > to ask such questions. For instance: If drug dealers make
    > so much money, why do they still live with their mothers?
    > Which is more dangerous, a gun or a swimming pool? What
    > really caused crime rates to plunge during the past decade?
    > Do real-estate agents have their clients' best interests at
    > heart? Why do black parents give their children names that
    > may hurt their career prospects? Do schoolteachers cheat to
    > meet high-stakes testing standards? Is sumo wrestling
    > corrupt?
    >
    > And how does a homeless man afford $50 headphones?
    >
    > Many
    > people -- including a fair number of his peers -- might not
    > recognize Levitt's work as economics at all. But he has
    > merely distilled the so-called dismal science down to its
    > most primal aim: explaining how people get what they want,
    > or need. Unlike most academics, he is unafraid of using
    > personal observations and curiosities (though he does fear
    > calculus). He is an intuitionist. He sifts through a pile
    > of data to find a story that no one else had found. He
    > devises a way to measure an effect that veteran economists
    > had declared unmeasurable. His abiding interests -- though
    > he says he has never trafficked in them himself -- are
    > cheating, corruption and crime.
    >
    > His interest in the homeless man's headphones, meanwhile,
    > didn't last long. ''Maybe,'' he said later, ''it was just
    > testimony to the fact I'm too disorganized to buy a set of
    > headphones that I myself covet.''
    >
    > Levitt is the first to say that some of his topics border
    > on the trivial. But he has proved to be such an ingenious
    > researcher and clear-eyed thinker that instead of being
    > consigned to the fringe of his field, the opposite has
    > happened: he has shown other economists just how well their
    > tools can make sense of the real world.
    >
    > ''Levitt is considered a demigod, one of the most creative
    > people in economics and maybe in all social science,'' says
    > Colin Camerer, an economist at the California Institute of
    > Technology. ''He represents something that everyone thinks
    > they will be when they go to grad school in econ, but
    > usually they have the creative spark bored out of them by
    > endless math -- namely, a kind of intellectual detective
    > trying to figure stuff out.''
    >
    > Levitt is a populist in a field that is undergoing a bout
    > of popularization. Undergraduates are swarming the
    > economics departments of elite universities. Economics is
    > seen as the ideal blend of intellectual prestige (it does
    > offer a Nobel, after all) and practical training for a
    > high-flying finance career (unless, like Levitt, you choose
    > to stay in academia). At the same time, economics is ever
    > more visible in the real world, thanks to the continuing
    > fetishization of the stock market and the continuing
    > fixation with Alan Greenspan.
    >
    > The greatest change, however, is within the scholarly
    > ranks. Microeconomists are gaining on the macro crowd,
    > empiricists gaining on the theorists. Behavioral economists
    > have called into doubt the very notion of ''homo
    > economicus,'' the supposedly rational decision-maker in
    > each of us. Young economists of every stripe are more
    > inclined to work on real-world subjects and dip into
    > bordering disciplines -- psychology, criminology,
    > sociology, even neurology -- with the intent of rescuing
    > their science from its slavish dependence upon mathematical
    > models.
    >
    > Levitt fits everywhere and nowhere. He is a noetic
    > butterfly that no one has pinned down -- he was once
    > offered a job on the Clinton economic team, and the Bush
    > campaign approached him about being a crime adviser -- but
    > who is widely appreciated.
    >
    > ''Steve isn't really a behavioral economist, but they'd be
    > happy to have him,'' says Austan Goolsbee, who teaches
    > economics at the University of Chicago's Graduate School of
    > Business. ''He's not really an old price-theory guy, but
    > these Chicago guys are happy to claim him. He's not really
    > a Cambridge guy'' -- although Levitt went to Harvard and
    > then M.I.T. -- ''but they'd love him to come back.''
    >
    > He has critics, to be sure. Daniel Hamermesh, a prominent
    > labor economist at the University of Texas, has taught
    > Levitt's paper ''The Impact of Legalized Abortion on
    > Crime'' to his undergraduates. ''I've gone over this paper
    > in draft, in its printed version, at great length, and for
    > the life of me I can't see anything wrong with it,''
    > Hamermesh says. ''On the other hand, I don't believe a word
    > of it. And his stuff on sumo wrestlers -- well, this is not
    > exactly fundamental, unless you're Japanese and weigh 500
    > pounds.''
    >
    > But at 36, Levitt is a full professor in the University of
    > Chicago's economics department, the most legendary program
    > in the country. (He received tenure after only two years.)
    > He is an editor of The Journal of Political Economy, a
    > leading journal in the field. And the American Economic
    > Association recently awarded him its John Bates Clark
    > Medal, given biennially to the country's best economist
    > under 40.
    >
    >
    > He is a prolific and diverse writer. But his paper linking
    > a rise in abortion to a drop in crime has made more noise
    > than the rest combined. Levitt and his co-author, John
    > Donohue of Stanford Law School, argued that as much as 50
    > percent of the huge drop in crime since the early 1990's
    > can be traced to Roe v. Wade. Their thinking goes like
    > this: the women most likely to seek an abortion -- poor,
    > single, black or teenage mothers -- were the very women
    > whose children, if born, have been shown most likely to
    > become criminals. But since those children weren't born,
    > crime began to decrease during the years they would have
    > entered their criminal prime. In conversation, Levitt
    > reduces the theory to a tidy syllogism: ''Unwantedness
    > leads to high crime; abortion leads to less unwantedness;
    > abortion leads to less crime.''
    >
    > Levitt had already published widely about crime and
    > punishment. One paper he wrote as a graduate student is
    > still regularly cited. His question was disarmingly simple:
    > Do more police translate into less crime? The answer would
    > seem obvious -- yes -- but had never been proved: since the
    > number of police officers tends to rise along with the
    > number of crimes, the effectiveness of the police was
    > tricky to measure.
    >
    > Levitt needed a mechanism that would unlink the crime rate
    > from police hiring. He found it within politics. He noticed
    > that mayors and governors running for re-election often
    > hire more police officers. By measuring those police
    > increases against crime rates, he was able to determine
    > that additional officers do indeed bring down violent
    > crime.
    >
    > That paper was later disputed -- another graduate student
    > found a serious mathematical mistake in it -- but Levitt's
    > ingenuity was obvious. He began to be acknowledged as a
    > master of the simple, clever solution. He was the guy who,
    > in the slapstick scene, sees all the engineers futzing with
    > a broken machine -- and then realizes that no one has
    > thought to plug it in.
    >
    > Arguing that the police help deter crime didn't make Levitt
    > any enemies. Arguing that abortion deterred crime was
    > another matter.
    >
    > In the abortion paper, published in 2001, he and Donohue
    > warned that their findings should not be seen ''as either
    > an endorsement of abortion or a call for intervention by
    > the state in the fertility decisions of women.'' They
    > suggested that crime might just as easily be curbed by
    > ''providing better environments for those children at
    > greatest risk for future crime.''
    >
    > Still, the very topic managed to offend nearly everyone.
    > Conservatives were enraged that abortion could be construed
    > as a crime-fighting tool. Liberals were aghast that poor
    > and black women were singled out. Economists grumbled that
    > Levitt's methodology was not sound. A syllogism, after all,
    > can be a magic trick: All cats die; Socrates died;
    > therefore Socrates was a cat.
    >
    > ''I think he's enormously clever in so many areas, focusing
    > very much on the issue of reverse causality,'' says Ted
    > Joyce, an economist at Baruch College who has written a
    > critical response to the abortion paper. ''But in this case
    > I think he ignored it, or didn't tend to it well enough.''
    >
    > As the news media gorged on the abortion-crime story,
    > Levitt came under direct assault. He was called an
    > ideologue (by conservatives and liberals alike), a
    > eugenicist, a racist and downright evil.
    >
    > In reality, he seems to be very much none of those. He has
    > little taste for politics and less for moralizing. He is
    > genial, low-key and unflappable, confident but not cocky.
    > He is a respected teacher and colleague; he is a
    > sought-after collaborator who, because of the breadth of
    > his curiosities, often works with scholars outside his
    > field -- another rarity for an economist.
    >
    > ''I hesitate to use these words, but Steve is a con man, in
    > the best sense,'' says Sudhir Venkatesh, a sociologist at
    > Columbia University. ''He's the Shakespearean jester. He'll
    > make you believe his ideas were yours.'' Venkatesh was
    > Levitt's co-author on ''An Economic Analysis of a
    > Drug-Selling Gang's Finances,'' which found that the
    > average street dealer lives with his mother because the
    > take-home pay is, frankly, terrible. The paper analyzed one
    > crack gang's financial activities as if it were any
    > corporation. (It was Venkatesh who procured the data, from
    > a former gang member.) Such a thing had never been tried.
    > ''This lack of focus,'' Levitt deadpanned in one version of
    > the paper, ''is perhaps partly attributable to the fact
    > that few economists have been involved in the study of
    > gangs.''
    >
    > Levitt speaks with a boyish lisp. His appearance is High
    > Nerd: a plaid button-down shirt, nondescript khakis and a
    > braided belt, sensible shoes. His pocket calendar is
    > branded with the National Bureau of Economic Research logo.
    > ''I wish he would get more than three haircuts a year,''
    > his wife, Jeannette, says, ''and that he wasn't still
    > wearing the same glasses he got 15 years ago, which weren't
    > even in fashion then.'' He was a good golfer in high school
    > but has so physically atrophied that he calls himself ''the
    > weakest human being alive'' and asks Jeannette to open jars
    > around the house.
    >
    > There is nothing in his appearance or manner, in other
    > words, that suggests a flamethrower. He will tell you that
    > all he does is sit at his desk, day and night, wrestling
    > with some strange mountain of data. He will tell you that
    > he would do it free (his salary is reportedly more than
    > $200,000), and you tend to believe him. He may be an
    > accidental provocateur, but he is a provocateur
    > nonetheless.
    >
    > He takes particular delight in catching wrongdoers. In one
    > paper, he devised a set of algorithms that could identify
    > teachers in the Chicago public-school system who were
    > cheating. ''Cheating classrooms will systematically differ
    > from other classrooms along a number of dimensions,'' he
    > and his co-author, Brian Jacob of the Kennedy School of
    > Government, wrote in ''Catching Cheating Teachers.'' ''For
    > instance, students in cheating classrooms are likely to
    > experience unusually large test-score gains in the year of
    > the cheating, followed by unusually small gains or even
    > declines in the following year when the boost attributable
    > to cheating disappears.''
    >
    > Levitt used test-score data from the Chicago schools that
    > had long been available to other researchers. There were a
    > number of ways, he realized, that a teacher could cheat. If
    > she were particularly brazen (and stupid), she might give
    > students the correct answers. Or, after the test, she might
    > actually erase students' wrong answers and fill in correct
    > ones. A sophisticated cheater would be careful to avoid
    > conspicuous blocks of identical answers. But Levitt was
    > more sophisticated. ''The first step in analyzing
    > suspicious strings is to estimate the probability each
    > child would give a particular answer on each question,'' he
    > wrote. ''This estimation is done using a multinomial logit
    > framework with past test scores, demographics and
    > socioeconomic characteristics as explanatory variables.''
    >
    > So by measuring any number of factors -- the difficulty of
    > a particular question, the frequency with which students
    > got hard questions right and easy ones wrong, the degree to
    > which certain answers were highly correlated in one
    > classroom -- Levitt identified which teachers he thought
    > were cheating. (Perhaps just as valuable, he was also able
    > to identify the good teachers.) The Chicago school system,
    > rather than disputing Levitt's findings, invited him into
    > the schools for retesting. As a result, the cheaters were
    > fired.
    >
    > Then there is his coming ''Understanding Why Crime Fell in
    > the 1990's: Four Factors That Explain the Decline and Seven
    > That Do Not.'' The entire drop in crime, Levitt says, was
    > due to more police officers, more prisoners, the waning
    > crack epidemic and Roe v. Wade.
    >
    > One factor that probably didn't make a difference, he
    > argues, was the innovative policing strategy trumpeted in
    > New York by Rudolph Giuliani and William Bratton.
    >
    > ''I think,'' Levitt says, ''I'm pretty much alone in saying
    > that.''
    >
    > He comes from a Minneapolis family of high, if unusual,
    > achievers. His father, a medical researcher, is considered
    > a leading authority on intestinal gas. (He bills himself as
    > ''The Man Who Gave Status to Flatus and Class to Gas.'')
    > One of Levitt's great uncles, Robert May, wrote ''Rudolph
    > the Red-Nosed Reindeer'' -- the book, that is; another
    > great uncle, Johnny Marks, later wrote the song.
    >
    > At Harvard, Levitt wrote his senior thesis on thoroughbred
    > breeding and graduated summa cum laude. (He is still
    > obsessed with horse racing. He says he believes it is
    > corrupt and has designed a betting system -- the details of
    > which he will not share -- to take advantage of the
    > corruption.) He worked for two years as a management
    > consultant before enrolling at M.I.T. for a doctorate in
    > economics. The M.I.T. program was famous for its
    > mathematical intensity. Levitt had taken exactly one math
    > course as an undergraduate and had forgotten even that.
    > During his first graduate class, he asked the student next
    > to him about a formula on the board: Is there any
    > difference between the derivative sign that's straight
    > up-and-down and the curly one? ''You are in so much
    > trouble,'' he was told.
    >
    > ''People wrote him off,'' recalls Austan Goolsbee, the
    > Chicago economist who was then a classmate. ''They'd say,
    > 'That guy has no future.'''
    >
    > Levitt set his own course. Other grad students stayed up
    > all night working on problem sets, trying to make good
    > grades. He stayed up researching and writing. ''My view was
    > that the way you succeed in this profession is you write
    > great papers,'' he says. ''So I just started.''
    >
    > Sometimes he would begin with a question. Sometimes it was
    > a set of data that caught his eye. He spent one entire
    > summer typing into his computer the results of years' worth
    > of Congressional elections. (Today, with so much
    > information so easily available on the Internet, Levitt
    > complains that he can't get his students to input data at
    > all.) All he had was a vague curiosity about why incumbents
    > were so often re-elected.
    >
    > Then he happened upon a political-science book whose
    > authors claimed that money wins elections, period. ''They
    > were trying to explain election outcomes as a function of
    > campaign expenditures,'' he recalls, ''completely ignoring
    > the fact that contributors will only give money to
    > challengers when they have a realistic chance of winning,
    > and incumbents only spend a lot when they have a chance of
    > losing. They convinced themselves this was the causal story
    > even though it's so obvious in retrospect that it's a
    > spurious effect.''
    >
    > Obvious, at least, to Levitt. Within five minutes, he had a
    > vision of the paper he would write. ''It came to me,'' he
    > says, ''in full bloom.''
    >
    > The problem was that his data couldn't tell him who was a
    > good candidate and who wasn't. It was therefore impossible
    > to tease out the effect of the money. As with the
    > police/crime rate puzzle, he had to trick the data.
    >
    > Because he himself had typed in the data, he had noticed
    > something: often, the same two candidates faced each other
    > multiple times. By analyzing the data from only those
    > elections, Levitt was able to find a true result. His
    > conclusion: campaign money has about one-tenth the impact
    > as was commonly accepted.
    >
    > An unknown graduate student, he sent his paper to The
    > Journal of Political Economy -- one professor told him he
    > was crazy for even trying -- where it was published. He
    > completed his Ph.D. in three years, but because of his
    > priorities, he says, he was ''invisible'' to the faculty,
    > ''a real zero.'' Then he stumbled upon what he now calls
    > the turning point in his career.
    >
    > He had an interview for the Society of Fellows, the
    > venerable intellectual Harvard clubhouse that pays young
    > scholars to do their own work, for three years, with no
    > commitments. Levitt felt he didn't stand a chance. For
    > starters, he didn't consider himself an intellectual. He
    > would be interviewed over dinner by the senior fellows, a
    > collection of world-renowned philosophers, scientists and
    > historians. He worried he wouldn't have enough conversation
    > for even the first course.
    >
    > Instead, he was on fire. Whatever subject came up -- the
    > brain, ants, philosophy -- he just happened to remember
    > something pithy he'd read. His wit crackled as it had never
    > crackled before. When he told them about the two summers he
    > spent betting the horses back in Minnesota, they ate it up!
    >
    >
    > Finally -- disquietingly -- one of them said: ''I'm having
    > a hard time seeing the unifying theme of your work. Could
    > you explain it?''
    >
    > Levitt was stymied. He had no idea what his unifying theme
    > was, or if he even had one.
    >
    > Amartya Sen, the future Nobel-winning economist, jumped in
    > and neatly summarized what he saw as Levitt's theme.
    >
    > Yes, Levitt said eagerly, that's my theme.
    >
    > Another fellow
    > then offered another theme.
    >
    > You're right, Levitt said, that's my theme.
    >
    > And so it
    > went, like dogs tugging at a bone, until the philosopher
    > Robert Nozick interrupted. If Levitt could have been said
    > to have an intellectual hero, it would be Nozick.
    >
    > ''How old are you, Steve?'' he asked.
    >
    > ''Twenty-six.''
    >
    >
    > Nozick turned to the other fellows: ''He's 26 years old.
    > Why does he need to have a unifying theme? Maybe he's going
    > to be one of those people who's so talented he doesn't need
    > one. He'll take a question and he'll just answer it, and
    > it'll be fine.''
    >
    > The University of Chicago's economics department had a
    > famous unifying theme -- the Gospel of Free Markets, with a
    > conservative twist -- and would therefore not have seemed
    > the most likely fit for Levitt. As he sees it, Chicago is
    > about theory, deep thinking and big ideas, while he is
    > about empiricism, clever thinking and ''cute but ultimately
    > insubstantial ideas.''
    >
    > But Chicago also had Gary Becker. To Levitt, Becker is the
    > most influential economist of the past 50 years. Long
    > before it was fashionable, Becker brought microeconomic
    > theory to offbeat topics, the family and crime in
    > particular. For years, Becker was demonized -- a single
    > phrase like ''the price of children'' would set off untold
    > alarms. ''I took a lot of heat over my career from people
    > who thought my work was silly or irrelevant or not
    > economics,'' Becker says. But Chicago supported him; he
    > persevered, winning the Nobel Prize in 1992; and he became
    > Steven Levitt's role model.
    >
    > Becker told Levitt that Chicago would be a great
    > environment for him. ''Not everybody agrees with all your
    > results,'' he said, ''but we agree what you're doing is
    > very interesting work, and we'll support you in that.''
    >
    > Levitt soon found that the support at Chicago went beyond
    > the scholarly. The year after he was hired, his wife gave
    > birth to their first child, Andrew. One day, just after
    > Andrew turned a year old, he came down with a slight fever.
    > The doctor diagnosed an ear infection. When he started
    > vomiting the next morning, his parents took him to the
    > hospital. A few days later he was dead of pneumococcal
    > meningitis.
    >
    > Amid the shock and grief, Levitt had an undergraduate class
    > that needed teaching. It was Gary Becker -- a Nobel
    > laureate nearing his 70th birthday -- who sat in for him.
    > Another colleague, D. Gale Johnson, sent a condolence card
    > that Levitt still quotes from memory.
    >
    > Levitt and Johnson, an agricultural economist in his 80's,
    > began speaking regularly. Levitt learned that Johnson's
    > daughter was one of the first Americans to adopt a daughter
    > from China. Soon the Levitts adopted a daughter of their
    > own, whom they named Amanda. In addition to Amanda, they
    > have since had a daughter, now almost 3, and a son. But
    > Andrew's death has played on, in various ways. They have
    > become close friends with the family of the little girl to
    > whom they donated Andrew's liver. (They also donated his
    > heart, but that baby died.) And not surprisingly for a
    > scholar who pursues real-life subjects, the death also
    > informed Levitt's work.
    >
    > He and Jeannette joined a support group for grieving
    > parents. Levitt was struck by how many children had drowned
    > in swimming pools. They were the kinds of deaths that don't
    > make the newspaper -- unlike, for instance, a child who
    > dies while playing with a gun.
    >
    > Levitt was curious and went looking for numbers that would
    > tell the story. He wrote up the results as an op-ed article
    > for The Chicago Sun-Times. It featured the sort of plangent
    > counterintuition for which he has become famous: ''If you
    > own a gun and have a swimming pool in the yard, the
    > swimming pool is almost 100 times more likely to kill a
    > child than the gun is.''
    >
    > Trying to get his mind off death, Levitt took up a hobby:
    > rehabbing and selling old houses in Oak Park, where he
    > lives. This experience has led to yet another paper, about
    > the real-estate market. It is his most Chicago-style paper
    > yet, a romp in price theory, a sign that the university's
    > influence on him is perhaps as strong as his influence on
    > it. But Levitt being Levitt, it also deals with corruption.
    >
    >
    > While negotiating to buy old houses, he found that the
    > seller's agent often encouraged him, albeit cagily, to
    > underbid. This seemed odd: didn't the agent represent the
    > seller's best interest? Then he thought more about the
    > agent's role. Like many other ''experts'' (auto mechanics
    > and stockbrokers come to mind), a real-estate agent is
    > thought to know his field far better than a lay person. A
    > homeowner is encouraged to trust the agent's information.
    > So if the agent brings in a low offer and says it might
    > just be the best the homeowner can expect, the homeowner
    > tends to believe him. But the key, Levitt determined, lay
    > in the fact that agents ''receive only a small share of the
    > incremental profit when a house sells for a higher value.''
    > Like a stockbroker churning commissions or a bookie
    > grabbing his vig, an agent was simply looking to make a
    > deal, any deal. So he would push homeowners to sell too
    > fast and too cheap.
    >
    > Now if Levitt could only measure this effect. Once again,
    > he found a clever mechanism. Using data from more than
    > 50,000 home sales in Cook County, Ill., he compared the
    > figures for homes owned by real-estate agents with those
    > for homes for which they acted only as agents. The agents'
    > homes stayed on the market about 10 days longer and sold
    > for 2 percent more.
    >
    >
    > Late on a summer afternoon, Levitt is in his office, deep
    > inside one of the university's Gothic behemoths. The
    > ceiling is stained, the plaster around the window
    > crumbling. He is just back from sabbatical at Stanford, and
    > his desk is a holy mess: stacks of books and journals, a
    > green sippy cup and a little orange squeeze hippo.
    >
    > This is his afternoon to meet with students. Levitt drinks
    > a Mountain Dew and talks softly. Some students come for
    > research assignments, some for advice. One has just written
    > her undergraduate thesis: ''The Labor Market Consequence of
    > Graduating College in a Bad Economy.'' For a thesis, Levitt
    > tells her, it's very good. But now she wants to have it
    > published.
    >
    > ''You write like a college student, and that's a problem,''
    > he says. ''The thing is, you're telling a story. There's
    > foreshadowing going on, all those tricks. You want the
    > reader going down a particular path so when they get the
    > results, they understand them and believe them. But you
    > also want to be honest about your weaknesses. People are
    > much less harsh on weaknesses that are clear than
    > weaknesses that are hidden -- as they should be.''
    >
    > Be honest about your weaknesses. Has there ever been a
    > prize-winning scholar as honest about his weaknesses as
    > Steven Levitt? He doesn't understand economics, he claims,
    > or math. He's a little thinker in a world of big thinkers.
    > He can't even open a jar of spaghetti sauce at home, poor
    > guy.
    >
    > Friends say that Levitt's self-deprecation is as calculated
    > as it is genuine. Within academia, economists take pride in
    > being the most cutthroat of a cutthroat breed. Anyone who
    > writes papers on ''Weakest Link'' (contestants discriminate
    > against Latino and elderly peers, Levitt concluded, but not
    > blacks or women) and sumo (to best manage their tournament
    > rankings, wrestlers often conspire to throw matches) had
    > better not also be arrogant.
    >
    > Or maybe it is not self-deprecation at all. Maybe it is
    > self-flagellation. Maybe what Steven Levitt really wants is
    > to graduate from his ''silly'' and ''trivial'' and
    > ''shallow'' topics.
    >
    > He thinks he's onto something with a new paper about black
    > names. He wanted to know if someone with a distinctly black
    > name suffers an economic penalty. His answer -- contrary to
    > other recent research -- is no. But now he has a bigger
    > question: Is black culture a cause of racial inequality or
    > is it a consequence? For an economist, even for Levitt,
    > this is new turf -- ''quantifying culture,'' he calls it.
    > As a task, he finds it thorny, messy, perhaps impossible
    > and deeply tantalizing.
    >
    > Driving home to Oak Park that evening, his Cavalier glumly
    > thrumming along the Eisenhower Expressway, he dutifully
    > addresses his future. Leaving academia for a hedge fund or
    > a government job does not interest him (though he might, on
    > the side, start a company to catch cheating teachers). He
    > is said to be at the top of every economics department's
    > poaching list. But the tree he and Jeannette planted when
    > Andrew died is getting too big to move. You get the feeling
    > he may stay at Chicago awhile.
    >
    > There are important problems, he says, that he feels ready
    > to address.
    >
    > For instance? ''Tax evasion. Money-laundering. I'd like to
    > put together a set of tools that lets us catch terrorists.
    > I mean, that's the goal. I don't necessarily know yet how
    > I'd go about it. But given the right data, I have little
    > doubt that I could figure out the answer.''
    >
    > It might seem absurd for an economist to dream of catching
    > terrorists. Just as it must have seemed absurd if you were
    > a Chicago schoolteacher, called into an office and told
    > that, ahem, the algorithms designed by that skinny man with
    > thick glasses had determined that you are a cheater. And
    > that you are being fired. Steven Levitt may not fully
    > believe in himself, but he does believe in this: teachers
    > and criminals and real-estate agents may lie, and
    > politicians, and even C.I.A. analysts. But numbers don't.
    >
    >
    >
    >
    > Stephen J. Dubner is the author, most recently, of
    > ''Confessions of a Hero-Worshiper.'' He is writing a book
    > about the psychology of money.
    >
    >

    http://www.nytimes.com/2003/08/03/magazine/03LEVITT.html?ex=1060924501&ei=1&en=c8f9a5805b60223f

    > Copyright 2003 The New York Times Company

    -- 
    Terry W. Colvin, Sierra Vista, Arizona (USA) < fortean1@mindspring.com >
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