Inquiring minds want to know; Levitt mines data

A quick review of the Web page for the University of Chicago’s Department of Economics will reveal that Steven Levitt is not a typical economist.

While some of his colleagues’ recent research includes monetary policy and international trade, Levitt’s work of late includes economic models of crime and corruption, abortion legalization and school choice. But Levitt, who now holds the title of Alvin H. Baum Professor in Economics, doesn’t see himself as any different from the other economists at UC or anywhere, for that matter.

Levitt, in fact, feels that he was a natural-born economist.

“The interest in economics (for me) was more an accident than anything,” he explained.

When Levitt attended Harvard, almost all first-year students took an introductory economics course – it was just the “thing” to do. Levitt quickly noticed that what went up on the chalkboard seemed very simple to him, even as it stumped his fellow students.

“I just happened to think like an economist,” he said.

But Levitt wasn’t interested in asset pricing and recessions. Instead, he wanted to use the tools of economics to find answers to questions that intrigued him.

His book “Freakonomics,” co-authored by journalist Stephen Dubner, is the culmination of 10 years’ worth of answering such questions. He explores the darker side of sumo wrestling, and explains how it’s not much different than the residential real estate industry. He uses data to determine if parents who treat their children to museums and musicals on a regular basis are having a more positive influence of their progenies’ intellect than the divorced parents who just don’t have time for such activities.

Since its publication in April 2005, Freakonomics has sold more than 1.5 million copies and is currently ranked 10th in sales on Amazon.com.

Levitt will speak at Bixpo on Sept. 14 at the Budweiser Event Center in Loveland. For many, it might be the first time they listen to an economist speak for more than 15 minutes without their minds wandering.

That’s because Levitt focuses on topics that are current and of interest to anyone who is a part of a community. His early research looked at politics, an area in which scientists had been gathering data, but that economists had not touched.

Levitt begins his research by forming a question. His process does not include focus groups or even a review of recent headlines. Instead, his process of finding a question to answer starts and ends in his head.

“I don’t have good ideas very often,” he said. “I maybe get one or two per year. For as much time as I spend thinking about it, that’s not many.”

Levitt doesn’t care if the question he sets out to answer is one that is going to interest anyone else. In fact, he is often surprised by how much attention it draws.

He can’t get his research on the impact of crack cocaine picked up for publication. On the other hand, his look at the ties between the legalization of abortion and the subsequent decline in crime has earned him acclaim and disdain.

So what’s next from the self-proclaimed rogue economist?

In “Freakonomics,” Levitt briefly mentions data that suggests car seats are no more effective than standard seat belts in preventing injuries in post-toddler children.

“I got so many e-mails from people because of that one line in the book,” Levitt recalls. He is currently looking more in-depth into the issue, which he recognizes as contentious.

“We will write another book,” he added. “The obstacle is to do all the research.”

He estimates that he’ll have conducted enough research for another book in four to five years. In the meantime, anyone can catch his discussion and possibly pick his brain at Bixpo.

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