…

Economics Detective Radio

…

Garrett M. Petersen

Economics Detective Radio is a podcast about markets, ideas, institutions, and all things related to the field of economics. Episodes consist of long-form interviews and are generally released on Fridays. Topics include economic theory, economic history, the history of thought, money, banking, finance, macroeconomics, public choice, business cycles, health care, education, international trade, and anything else of interest to economists, students, and serious amateurs interested in the science of human action. For additional content and links related to each episode, visit economicsdetective.com.

#154

The Hidden Rules of Ownership with Michael Heller

<a href= "https://www.amazon.com/Mine-Hidden-Rules-Ownership-Control-ebook/dp/B08B5F7NNY?&linkCode=li3&tag=economicsde0f-20&linkId=266b7fdd8b2fcfd3780d0cd111e1468b&language=en_US&ref_=as_li_ss_il" target="_blank" rel="noopener"></a> Michael Heller joins the podcast to discuss his new book, [Mine! How the Hidden Rules of Ownership Control Our Lives] (https://amzn.to/3v6aSAn) . This book explores the implicit social rules governing ownership. In brief, these rules are as follows: 1--Attachment ("it's mine because it's connected to something of mine") 2--Possession ("it's mine because I physically control it") 3--First-in-time ("it's mine because I was here first") 4--Labour ("it's mine because I worked for it") 5--Self-ownership ("it's mine because it came from my body") 6--Family ("it's mine because my grandfather left it to me") We discuss these six rules with reference to many examples of how they play out in the modern world, from conflicts over airline seats to the rise and fall of Soviet communism. ... Read more

05 Mar 2021

42 MINS

42:05

05 Mar 2021

#153

The Wealth of Nations with Sarah Skwire

On today's episode, I discuss Adam Smith's Wealth of Nations with Sarah Skwire. Sarah is part of the team tweeting through the book [@AdamSmithWorks] (https://twitter.com/adamsmithworks) . We discuss the project and talk through the first few chapters of the Wealth of Nations. ... Read more

04 Feb 2021

49 MINS

49:51

04 Feb 2021

#152

The Kindness of Strangers with Michael McCullough

Today's guest is Michael McCullough of the University of California, San Diego. We are discussing his book <a href= "https://amzn.to/3dpUWQY" target="_blank" rel="noopener">The Kindness of Strangers: How a Selfish Ape Invented a New Moral Code</a>. How did humans, a species of self-centered apes, come to care about others? Since Darwin, scientists have tried to answer this question using evolutionary theory. In The Kindness of Strangers, psychologist Michael E. McCullough shows why they have failed and offers a new explanation instead. From the moment nomadic humans first settled down until the aftermath of the Second World War, our species has confronted repeated crises that we could only survive by changing our behavior. As McCullough argues, these choices weren’t enabled by an evolved moral sense, but with moral invention — driven not by evolution’s dictates but by reason. Today's challenges — climate change, mass migration, nationalism — are some of humanity’s greatest yet. In revealing how past crises shaped the foundations of human concern, The Kindness of Strangers offers clues for how we can adapt our moral thinking to survive these challenges as well. ... Read more

11 Oct 2020

59 MINS

59:44

11 Oct 2020

#151

The Gender Salary Ask Gap with Nina Roussille

Today's guest is [Nina Roussille] (https://ninaroussille.github.io/) of UC Berkeley and we discuss her working paper, <a href= "https://ninaroussille.github.io/files/Roussille_askgap.pdf">The central role of the ask gap in gender pay inequality</a>. The gender ask gap measures the extent to which women ask for lower salaries than comparable men. This paper studies the role of the ask gap in generating wage inequality using novel data from Hired.com, a leading online recruitment platform for full time engineering jobs in the United States. To use the platform, job candidates must post an ask salary, stating how much they want to make in their next job. Firms then apply to candidates by offering a bid salary they are willing to pay the candidate. If the candidate is hired, final salary is recorded. After adjusting for resume characteristics, the ask gap is 3.3%, the bid gap is 2.4% and the gap in final offers is 1.8%. Remarkably, further controlling for the ask salary explains all of the gender gaps in bid and final salary on the platform. To estimate the market-level effects of an increase in women’s ask salary, I exploit a sudden change in how candidates were prompted to provide their ask salary. For a subset of candidates, in mid-2018, the answer box used to solicit the ask salary went from an empty field to a pre-filled entry with the median salary on the platform for a similar candidate. Comparing candidates creating a profile before and after the feature change, I find that this change drove the ask gap and the bid gap to zero. In addition, women received the same number of bids before and after the change, suggesting they face little penalty for demanding wages comparable to men. Related links: During the conversation, Nina mentions Sheryl Sandberg's [Lean In: Women, Work, and the Will to Lead] (https://amzn.to/3cqIZde) . Among other things, encourages women to negotiate higher salaries, a strategy Nina's research would support. ... Read more

24 Sep 2020

54 MINS

54:01

24 Sep 2020

#150

Arts and Minds with Anton Howes

<a href= "https://www.amazon.com/Arts-Minds-Society-Changed-Nation-ebook/dp/B081J6JP69/ref=as_li_ss_il?ie=UTF8&linkCode=li3&tag=economicsde0f-20&linkId=1254e5151f467c17264ae10d3a1563f1&language=en_US" target="_blank" rel="noopener"></a> Anton Howes returns to the podcast to discuss his new book, [Arts and Minds: How the Royal Society of Arts Changed a Nation] (https://amzn.to/2YSiuHU) . From its beginnings in a coffee house in the mid-eighteenth century, the Royal Society for the Encouragement of Arts, Manufactures and Commerce has tried to improve British life in every way imaginable. It has sought to influence how Britons work, how they are educated, the music they listen to, the food they eat, the items in their homes, and even how they remember their own history. Arts and Minds is the remarkable story of an institution unlike any other—a society for the improvement of everything and anything. Drawing on exclusive access to a wealth of rare papers and artefacts from the Society’s own archives, Anton Howes shows how this vibrant and singularly ambitious organisation has evolved and adapted, constantly having to reinvent itself to keep in step with changing times. The Society has served as a platform for Victorian utilitarian reformers, purchased and restored an entire village, encouraged the planting of more than sixty million trees, and sought technological alternatives to child labour. But this is more than just a story about unusual public initiatives. It is an engaging and authoritative history of almost three centuries of social reform and competing visions of a better world—the Society’s members have been drawn from across the political spectrum, including Adam Smith, Edmund Burke, and Karl Marx. Informative and entertaining, Arts and Minds reveals how a society of public-spirited individuals tried to make their country a better place, and draws vital lessons from their triumphs and failures for all would-be reformers today. ... Read more

31 Aug 2020

1 HR 07 MINS

1:07:41

31 Aug 2020

#149

Science Fictions with Stuart Ritchie

<a href= "https://www.amazon.com/Science-Fictions-Negligence-Undermine-Search/dp/1250222699/ref=as_li_ss_il?ie=UTF8&linkCode=li3&tag=economicsde0f-20&linkId=7648729ddd36f98777e60abd9fe7294a&language=en_US" target="_blank" rel="noopener"></a> Today's guest is <a title="Stuart's Twitter Account" href= "https://twitter.com/StuartJRitchie" target="_blank" rel= "noopener">Stuart Ritchie</a>, psychologist and author of <a href= "https://amzn.to/2FgHn9h">Science Fictions: How Fraud, Bias, Negligence, and Hype Undermine the Search for Truth</a>. Science is how we understand the world. Yet failures in peer review and mistakes in statistics have rendered a shocking number of scientific studies useless – or, worse, badly misleading. Such errors have distorted our knowledge in fields as wide-ranging as medicine, physics, nutrition, education, genetics, economics, and the search for extraterrestrial life. As Science Fictions makes clear, the current system of research funding and publication not only fails to safeguard us from blunders but actively encourages bad science – with sometimes deadly consequences. Stuart Ritchie’s own work challenging an infamous psychology experiment helped spark what is now widely known as the “replication crisis,” the realization that supposed scientific truths are often just plain wrong. Now, he reveals the very human biases, misunderstandings, and deceptions that undermine the scientific endeavor: from contamination in science labs to the secret vaults of failed studies that nobody gets to see; from outright cheating with fake data to the more common, but still ruinous, temptation to exaggerate mediocre results for a shot at scientific fame. Yet Science Fictions is far from a counsel of despair. Rather, it’s a defense of the scientific method against the pressures and perverse incentives that lead scientists to bend the rules. By illustrating the many ways that scientists go wrong, Ritchie gives us the knowledge we need to spot dubious research and points the way to reforms that could make science trustworthy once again. ... Read more

14 Aug 2020

1 HR 23 MINS

1:23:25

14 Aug 2020

#148

Social Security and Wealth Inequality with Sylvain Catherine and Natasha Sarin

Today's guests are Sylvain Catherine and Natasha Sarin of the University of Pennsylvania. They discuss their research on wealth inequality, specifically with respect to social security's impact on calculated wealth inequality. When you account for the value of all future payroll taxes into Social Security and all future benefit payments from Social Security, the present value of that stream of payments accounts for a large fraction of the wealth held by the bottom 90% of households. Recent influential work finds large increases in inequality in the U.S., based on measures of wealth concentration that notably exclude the value of social insurance programs. This paper revisits this conclusion by incorporating Social Security retirement benefits into measures of wealth inequality. Wealth inequality has not increased in the last three decades when Social Security is accounted for. When discounted at the risk-free rate, real Social Security wealth increased substantially from $5.6 trillion in 1989 to just over $42.0 trillion in 2016. When we adjust for systematic risk coming from the covariance of Social Security returns with the market portfolio, this increase remains sizable, growing from over $4.6 trillion in 1989 to $34.0 trillion in 2016. Consequently, by 2016, Social Security wealth represented 58% of the wealth of the bottom 90% of the wealth distribution. Redistribution through programs like Social Security increases the progressivity of the economy, and it is important that our estimates of wealth concentration reflect this. ... Read more

20 Jul 2020

52 MINS

52:24

20 Jul 2020

#147

BONUS: The Passion Economy

This bonus episode features an interview from <a href= "https://podcasts.apple.com/us/podcast/the-passion-economy/id1459910839"> The Passion Economy</a>, created by Adam Davidson of NPR's Planet Money. The clip features an interview with Coss Marte, an enterprising entrepreneur in an unorthodox business. The economy is bananas, even scary. But some people are thriving, and we're going to figure out how. Adam Davidson, "New Yorker" writer, longtime contributor to This American Life, and the creator of NPR’s "Planet Money," unearths stories from regular people. People who have cracked the code to success in our new economic reality. ... Read more

08 Jul 2020

09 MINS

09:24

08 Jul 2020

#146

Angrynomics with Mark Blyth

<a href= "https://www.amazon.com/Angrynomics-Eric-Lonergan/dp/1788212789/ref=as_li_ss_il?ref_=nav_signin&&linkCode=li3&tag=economicsde0f-20&linkId=38b0b593e90378dfb1d5df5e24c5710b&language=en_US" target="_blank" rel="noopener"></a> Today's episode features my conversation with <a href= "https://twitter.com/MkBlyth?s=20" target="_blank" rel= "noopener">Mark Blyth</a>, co-author (with Eric Lonergan) of [Angrynomics] (https://amzn.to/2VtQbOq) . Why are measures of stress and anxiety on the rise when economists and politicians tell us we have never had it so good? While statistics tell us that the vast majority of people are getting steadily richer, the world most of us experience day in and day out feels increasingly uncertain, unfair, and ever more expensive. In Angrynomics, Mark Blyth and Eric Lonergan explore the rising tide of anger, sometimes righteous and useful, sometimes destructive and ill-targeted, and propose radical new solutions for an increasingly polarized and confusing world. Angrynomics is for anyone wondering, where the hell do we go from here? In the course of our conversation, Mark mentioned a talk he gave called [The Mustang and the Volvo] (https://www.youtube.com/watch?v=3rgANzx8hXs) describing the different economies of America and Europe. ... Read more

29 Jun 2020

50 MINS

50:24

29 Jun 2020

#145

Free to Move with Ilya Somin

<a href= "https://www.amazon.com/Free-Move-Migration-Political-Freedom-ebook/dp/B0876CHH3M/ref=as_li_ss_il?dchild=1&keywords=free+to+move&qid=1591310135&sr=8-3&linkCode=li3&tag=economicsde0f-20&linkId=c2693dda9ee9a4cb0616adffcb314949&language=en_US" target="_blank" rel="noopener"></a> Ilya Somin of George Mason University joins the podcast to discuss his book [Free to Move: Foot Voting, Migration, and Political Freedom] (https://amzn.to/3eVjJvt) . Ballot box voting is often considered the essence of political freedom. But, it has two major shortcomings: individual voters have little chance of making a difference, and they also face strong incentives to remain ignorant about the issues at stake. "Voting with your feet," however, avoids both of these pitfalls and offers a wider range of choices. In Free to Move, Ilya Somin explains how broadening opportunities for foot voting can greatly enhance political liberty for millions of people around the world. People can vote with their feet by making decisions about whether to immigrate, where to live within a federal system, and what to purchase or support in the private sector. These three areas are rarely considered together, but Somin explains how they have major common virtues and can be mutually reinforcing. He contends that all forms of foot voting should be expanded and shows how both domestic constitutions and international law can be structured to increase opportunities for foot voting while mitigating possible downsides. Somin addresses a variety of common objections to expanded migration rights, including claims that the "self-determination" of natives requires giving them the power to exclude migrants, and arguments that migration is likely to have harmful side effects, such as undermining political institutions, overburdening the welfare state, increasing crime and terrorism, and spreading undesirable cultural values. While these objections are usually directed at international migration, Somin shows how a consistent commitment to such theories would also justify severe restrictions on domestic freedom of movement. That implication is an additional reason to be skeptical of these rationales for exclusion. By making a systematic case for a more open world, Free to Move challenges conventional wisdom on both the left and the right. ... Read more

04 Jun 2020

1 HR 00 MINS

1:00:11

04 Jun 2020

#144

Climate, Disease, and the Fall of Rome with Kyle Harper

<a href= "https://www.amazon.com/Fate-Rome-Climate-Disease-Princeton-ebook/dp/B071SLPWVL/ref=as_li_ss_il?ie=UTF8&linkCode=li3&tag=economicsde0f-20&linkId=02cd8029d0830c03a010f14e72a405cc&language=en_US" target="_blank" rel="noopener"></a> Historian Kyle Harper joins the show to discuss his book [The Fate of Rome: Climate, Disease, and the End of an Empire] (https://amzn.to/3eeTvnl) . We discuss the fall of the Roman empire and the new scientific discoveries that have shed more light on its nature and causes. Kyle's work looks at the epidemics and climatic changes that hit the empire, contributing to its disintegration. Interweaving a grand historical narrative with cutting-edge climate science and genetic discoveries, Kyle Harper traces how the fate of Rome was decided not just by emperors, soldiers, and barbarians but also by volcanic eruptions, solar cycles, climate instability, and devastating viruses and bacteria. He takes readers from Rome’s pinnacle in the second century, when the empire seemed an invincible superpower, to its unraveling by the seventh century, when Rome was politically fragmented and materially depleted. Harper describes how the Romans were resilient in the face of enormous environmental stress, until the besieged empire could no longer withstand the combined challenges of a “little ice age” and recurrent outbreaks of bubonic plague. ... Read more

22 May 2020

1 HR 01 MINS

1:01:02

22 May 2020

#143

Market Urbanism with Scott Beyer

Today's guest is <a title="Scott's Twitter" href= "https://twitter.com/sbcrosscountry?s=20" target="_blank" rel= "noopener">Scott Beyer</a>, a columnist who writes about urban issues. He is the creator of the <a href= "https://marketurbanismreport.com/" target="_blank" rel= "noopener">Market Urbanism Report</a>. Our discussion addresses some common concerns about housing markets. For instance, why do new luxury homes sometimes sit empty? What's the deal with Houston's land-use laws? And what can we do about the urban housing crisis? ... Read more

14 May 2020

53 MINS

53:53

14 May 2020

#142

Under the Influence with Robert H. Frank

<a href= "https://www.amazon.com/Under-Influence-Putting-Peer-Pressure-ebook/dp/B07XKFLWCT/ref=as_li_ss_il?crid=2QSNXT1WP92FK&dchild=1&keywords=robert+h.+frank,+under+the+influence+putting+peer+pressure+to+work&qid=1588962708&sprefix=robert+frank+peer,aps,212&sr=8-1&linkCode=li3&tag=economicsde0f-20&linkId=42b922ee8943c25a3dfe60205afa7002&language=en_US" target="_blank" rel="noopener"></a> Today's guest is Robert H. Frank of Cornell University. Our topic is his latest book, [Under the Influence: Putting Peer Pressure to Work] (https://amzn.to/2YGHeno) . Psychologists have long understood that social environments profoundly shape our behavior, sometimes for the better, often for the worse. But social influence is a two-way street—our environments are themselves products of our behavior. Under the Influence explains how to unlock the latent power of social context. It reveals how our environments encourage smoking, bullying, tax cheating, sexual predation, problem drinking, and wasteful energy use. We are building bigger houses, driving heavier cars, and engaging in a host of other activities that threaten the planet—mainly because that’s what friends and neighbors do. In the wake of the hottest years on record, only robust measures to curb greenhouse gases promise relief from more frequent and intense storms, droughts, flooding, wildfires, and famines. Robert Frank describes how the strongest predictor of our willingness to support climate-friendly policies, install solar panels, or buy an electric car is the number of people we know who have already done so. In the face of stakes that could not be higher, the book explains how we could redirect trillions of dollars annually in support of carbon-free energy sources, all without requiring painful sacrifices from anyone. Most of us would agree that we need to take responsibility for our own choices, but with more supportive social environments, each of us is more likely to make choices that benefit everyone. Under the Influence shows how. ... Read more

08 May 2020

1 HR 02 MINS

1:02:21

08 May 2020

#141

Ten Percent Less Democracy with Garett Jones

<a href= "https://www.amazon.com/10-Less-Democracy-Should-Elites-ebook/dp/B07ZTN8LRJ/ref=as_li_ss_il?crid=293QXPS5AX2ZF&keywords=garett+jones&qid=1584996925&sprefix=Garett+Jones,aps,203&sr=8-1&linkCode=li3&tag=economicsde0f-20&linkId=55fc17cee020df3d09cdd743e40ab131&language=en_US" target="_blank" rel="noopener"></a> Garett Jones returns to the podcast to discuss his book, [10% Less Democracy: Why You Should Trust Elites a Little More and the Masses a Little Less] (https://amzn.to/3acA6Sw) . During the 2016 presidential election, both Donald Trump and Bernie Sanders argued that elites were hurting the economy. But, drawing together evidence and theory from across economics, political science, and even finance, Garett Jones says otherwise. In 10% Less Democracy, he makes the case that the richest, most democratic nations would be better off if they slightly reduced accountability to the voting public, turning up the dial on elite influence. To do this, Jones builds on three foundational lines of evidence in areas where he has personal experience. First, as a former staffer in the U.S. Senate, he saw how senators voted differently as elections grew closer. Second, as a macroeconomist, Jones knows the merits of "independent" central banks, which sit apart from the political process and are controlled by powerful insiders. The consensus of the field is that this detached, technocratic approach has worked far better than more political and democratic banking systems. Third, his previous research on the effects of cognitive skills on political, social, and economic systems revealed many ways in which well-informed voters improve government. Discerning repeated patterns, Jones draws out practical suggestions for fine-tuning, focusing on the length of political terms, the independence of government agencies, the weight that voting systems give to the more-educated, and the value of listening more closely to a group of farsighted stakeholders with real skin in the game—a nation's sovereign bondholders. Accessible to political news junkies while firmly rooted and rigorous, 10% Less Democracy will fuel the national conversation about what optimal government looks like. ... Read more

23 Mar 2020

57 MINS

57:27