Monday, April 30, 2012

Freakonomics, Chapter 4


            In chapter 4, Levitt and Dubner seem to add more evidence to their underlying thesis that the conventional wisdom in society is not always true or accurate.  In this chapter they reveal that the reduction crime in New York city in the 1980’s was not due to economic growth or an improved police strategy, but instead it was the result of a rising abortion rate caused by the famous abortion legalization known as Roe Vs. Wade
            The authors succeed in making a convincing and interesting argument with their statistics in what they believe not to be a cause of crime reduction and what they believe to be a cause.  They are especially convincing with their statistic about the correlation between each states abortion rate and its crime rate. 
            My only question for the author is that although the increase in the abortion rate seems to be a reasonable and good argument, are there any other explanations or theories besides the main arguments that the authors refute in the chapter?  This correlation between abortion and crime seems to be more of theory than a causal relationship.  Stating that most of the children who were aborted would have grown up to commit homicides seems questionable.  
           Econometrics and the ability to find a correlation between different variables of interest is a useful tool to tell a story.  But one of the things I have learned in my Quantitative Methods class this semester is that Statistics and the construction of economic models is complex and far from a definite science.  Just because someone finds a correlation in a data set does not necessarily make their story the true one either.  

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