Friday, January 27, 2012

Economics – Que Vadis?

This a follow-up blog on the sorrow state of current economic research as reflected in journals of the esteemed American Economic Association.

In the American Economic Journal: Applied Economics Vol. 4, Issue 1 -- January 2012 we find more peculiar selection of articles:

·         “Partisan Grading” by Talia Bar and Asaf Zussman
“We study grading outcomes associated with professors in an elite university in the United States … Relative to their Democratic colleagues, Republican professors are associated with a less egalitarian distribution of grades and with lower grades awarded to black students relative to whites.” (Excerpt from abstract)
Comment: What is the relevance? Is there an racist undertone against Republican leaning professors who are in a minority? Is it not wonderful that the majority Democratic professors are more egalitarian in their grading?

·         “When the Saints Go Marching Out: Long-Term Outcomes for Student Evacuees from Hurricanes Katrina and Rita” by Bruce Sacerdote
“I examine long-term academic performance and college going for students affected by Hurricanes Katrina and Rita. Students who are forced to switch schools due to the hurricanes experience sharp declines in test scores in the first year following the hurricanes. …” (Excerpt from abstract)
Comment: Is there nothing safe under the sun to be examined by economists? What does he compare the outcomes of such fairly rare events to? Yes, the saints are marching out of economics.

·         “Do Expert Reviews Affect the Demand for Wine?” by Richard Friberg and Erik Grönqvist
“We examine the demand for wines in Sweden using five years of weekly data on sales, advertising, and expert reviews. The effect of a favorable review peaks in the week after publication with an increase in demand of 6 percent, and the effect remains significant for more than 20 weeks. … Restrictions on the state-owned monopoly retailer and the exogenous timing of a subset of the reviews support a causal interpretation of the effects of reviews on demand.” (Excerpt from abstract)
Comment: Is this a marketing study? Sweden is a country where alcohol consumption is almost prohibited and alcoholic beverages are expensive. Thus, it is curious to see such a study. Are not beer and vodka/akvavit the main beverages preferred in Sweden? Swedes buy their booze on ferries crossing the Baltic See or as tourists abroad. Moonshining is common. Whatever this study is worth!

·         “Are Female Leaders Good for Education? Evidence from India” by Irma Clots-Figueras
“This paper shows that the gender of politicians affects the educational levels of individuals who grow up in the districts where these politicians are elected. … to estimate the causal effect of the gender of politicians. Increasing female political representation increases the probability that an individual will attain primary education in urban areas, but not in rural areas, and not in the sample as a whole.” (Excerpt from abstract)
Comment: Obscure gender studies published by the AEA? Does gender really have causal effects on education? What does the author know about the role of women in a heterogeneous, ancient civilized society such as in India?

·         “Enhancing Cognitive Functioning: Medium-Term Effects of a Health and Family Planning Program in Matlab” by Tania Barham
“It is believed that early life circumstances are crucial to success later in life. Yet causal evidence that the impacts of early childhood health interventions continue into late childhood and adolescence is sparse. … in Bangladesh to determine whether children eligible for child health interventions in early childhood had better cognitive functioning at ages 8-14.” (Excerpt from abstract)
Comment: What is the relevance? Is this a specialized health care study in a developing country?

Once more a large portion (this time 50%) of all articles published by AEA as applied economics are obscure or quirky. May the next great global recession begin, while economists still have no clue.

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