{"id":169862,"date":"2026-02-15T18:13:28","date_gmt":"2026-02-16T02:13:28","guid":{"rendered":"https:\/\/lukeford.net\/blog\/?p=169862"},"modified":"2026-02-16T11:25:12","modified_gmt":"2026-02-16T19:25:12","slug":"junk-economics","status":"publish","type":"post","link":"https:\/\/lukeford.net\/blog\/?p=169862","title":{"rendered":"Junk Economics"},"content":{"rendered":"<p>Written with AI: <A HREF=\"https:\/\/statmodeling.stat.columbia.edu\/\">Statistician Andrew Gelman<\/a> has a long-standing reputation for using his blog, Statistical Modeling, Causal Inference, and Social Science, to dismantle &#8220;junk science&#8221; and &#8220;p-hacking&#8221; wherever he finds it. While he often focuses on psychology, he has directed his most pointed criticisms toward economists who treat noisy data as definitive proof for social engineering.<\/p>\n<p>His critiques generally fall into three categories:<\/p>\n<p><strong><A HREF=\"https:\/\/statmodeling.stat.columbia.edu\/?s=nudge&#038;submit=Search\">The &#8220;Nudgelords&#8221; and Behavioral Economists<\/a><\/strong><\/p>\n<p>Gelman has been a relentless critic of the &#8220;Nudgelord&#8221; faction\u2014prominent scholars who believe they can solve social problems through small, behavioral interventions.<\/p>\n<p><A HREF=\"https:\/\/statmodeling.stat.columbia.edu\/?s=Brian+Wansink&#038;submit=Search\">Brian Wansink<\/a>: Perhaps his most famous target. Gelman spent years detailing the hundreds of errors and &#8220;p-hacking&#8221; in Wansink\u2019s research on eating behavior (such as the &#8220;bottomless soup bowl&#8221; study). He famously mocked Wansink\u2019s &#8220;deep dive&#8221; approach to data, where Wansink admitted to &#8220;tweeking&#8221; datasets until they showed statistically significant results.<\/p>\n<p><A HREF=\"https:\/\/statmodeling.stat.columbia.edu\/?s=Richard+Thaler&#038;submit=Search\">Richard Thaler<\/a> and <A HREF=\"https:\/\/statmodeling.stat.columbia.edu\/?s=sunstein&#038;submit=Search\">Cass Sunstein<\/a>: While he respects their intellectual contributions, he frequently skewers the &#8220;Nudgelord&#8221; attitude that assumes experts are &#8220;sophisticates&#8221; while the public is &#8220;na\u00efve.&#8221; He argues that their policy recommendations often rest on fragile, non-replicable psychological experiments.<\/p>\n<p><strong>The Prestige Cartels and &#8220;Cargo Cult&#8221; Science<\/strong><\/p>\n<p>Gelman often targets high-status economists who use complex econometric models to mask simple, noisy observational data.<\/p>\n<p><A HREF=\"https:\/\/statmodeling.stat.columbia.edu\/?s=heckman&#038;submit=Search\">James Heckman<\/a>: Gelman has criticized the Nobel laureate for what he calls &#8220;Type M&#8221; (magnitude) errors\u2014claiming massive, life-changing effects from small sample sizes. He specifically targeted Heckman\u2019s work on early childhood intervention, arguing the effects were likely &#8220;over-the-top&#8221; estimates derived from noisy data.<\/p>\n<p><A HREF=\"https:\/\/statmodeling.stat.columbia.edu\/?s=levitt&#038;submit=Search\">Steven Levitt<\/a>: He has occasionally poked holes in the &#8220;Freakonomics&#8221; style of research, particularly when it relies on &#8220;cute&#8221; identification strategies (like the &#8220;himmicanes&#8221; vs. &#8220;hurricanes&#8221; naming study) that fail to hold up under rigorous statistical scrutiny.<\/p>\n<p><A HREF=\"https:\/\/statmodeling.stat.columbia.edu\/?s=Piketty&#038;submit=Search\">Thomas Piketty<\/a>: Gelman has pointed out the &#8220;garden of forking paths&#8221; in wealth inequality research. He warns that when researchers have a strong moral goal, they often (unconsciously) make data-processing choices that ensure the &#8220;correct&#8221; political conclusion.<\/p>\n<p><strong>The Methodology Gatekeepers<\/strong><\/p>\n<p>Gelman also targets the institutional structures that protect these alliances.<\/p>\n<p>The <A HREF=\"https:\/\/statmodeling.stat.columbia.edu\/?s=American+Economic+Review&#038;submit=Search\">American Economic Review (AER)<\/a>: He has criticized the flagship journal for its &#8220;gatekeeping&#8221; and for publishing studies with obviously flawed statistics simply because the authors are high-prestige figures.<\/p>\n<p>The &#8220;Discovery&#8221; Hawkers: He frequently skewers &#8220;TED Talk-ing hawkers&#8221; who present preliminary, shaky findings as mature, settled science to influence government policy.<\/p>\n<p>Gelman\u2019s &#8220;iron law&#8221; of criticism is that he rarely frames these as moral failures; instead, he calls them &#8220;intellectual errors&#8221; born from a &#8220;statistical fantasy world.&#8221; He argues that these scholars have fooled themselves into believing in the &#8220;law of small numbers&#8221;\u2014the idea that a small sample can reliably represent a massive population.<\/p>\n<p>Aside from Andrew Gelman, a loose alliance of &#8220;data vigilantes,&#8221; forensic economists, and open-science advocates has emerged to challenge the prestige cartels. These critics often operate outside the traditional peer-review system, using blogs and social media to bypass the gatekeepers of the &#8220;big five&#8221; economics journals.<\/p>\n<p><strong>The Forensic Methodologists<\/strong><\/p>\n<p>This group treats economic papers like crime scenes. They do not care about the &#8220;moral narrative&#8221; of the research; they care if the numbers in the tables are mathematically possible.<\/p>\n<p>Uri Simonsohn, Joe Simmons, and Leif Nelson: Known for their blog <A HREF=\"https:\/\/datacolada.org\/\">Data Colada<\/a>, this trio invented &#8220;p-curve&#8221; analysis to detect p-hacking. They famously exposed fraudulent data in behavioral economics papers, including the work of Dan Ariely. They represent the &#8220;Behavioral Realism&#8221; that Berkeley claims to value, but they apply it to the scientists themselves.<\/p>\n<p>Nick Brown and James Heathers: While they often work in psychology, their &#8220;GRIM&#8221; (Granularity-Related Inconsistency of Means) test is a terror to economists. They use simple arithmetic to show that reported means in many papers are mathematically impossible given the sample sizes.<\/p>\n<p><strong>The Replication Specialists<\/strong><\/p>\n<p>These critics focus on the &#8220;iron law&#8221; of the lab: if it is true, it should happen twice.<\/p>\n<p>The Replication Network (TRN): This is a dedicated hub for economists who attempt to recreate the &#8220;landmark&#8221; studies of the field. They frequently find that when they use the original author&#8217;s data but change a single, arbitrary assumption, the &#8220;significant&#8221; results vanish.<\/p>\n<p>Brian Nosek and the Center for Open Science: While broader than economics, Nosek&#8217;s work on the Reproducibility Project forced the field to reckon with the fact that its most &#8220;exciting&#8221; findings\u2014often the ones used to brief the IMF or the California legislature\u2014frequently fail to replicate.<\/p>\n<p><strong>The Public Intellectual Skeptics<\/strong><\/p>\n<p>These figures use their own high status to point out when the &#8220;emperors&#8221; of the field have no clothes.<\/p>\n<p>Nassim Nicholas Taleb: He is perhaps the most aggressive critic of &#8220;junk economics.&#8221; He skewers the use of Gaussian (bell curve) models in macroeconomics and finance, arguing that they ignore &#8220;fat tails&#8221; and &#8220;Black Swan&#8221; events. He treats the entire field of econometrics as &#8220;Cargo Cult Science&#8221; that uses complex math to hide a lack of skin in the game.<\/p>\n<p>Stephen Turner: As you know, Turner critiques the &#8220;tacit knowledge&#8221; and expertise claims of the social sciences. He points out that when economists claim &#8220;neutral expertise,&#8221; they are often just laundering political preferences through technical jargon.<\/p>\n<p>Noah Smith: Though he is a former academic and a mainstream commentator, Smith often calls out &#8220;Macro BS&#8221; and the tendency of economists to cling to models that have been &#8220;empirically thrashed&#8221; by real-world events.<\/p>\n<p><strong>The &#8220;Inside Baseball&#8221; Insurgents<\/strong><\/p>\n<p>There are also economists within the system who have made a career out of calling out their peers.<\/p>\n<p>Angus Deaton: The Nobel laureate has become increasingly vocal about the &#8220;dark side&#8221; of randomized controlled trials (RCTs). He argues that the &#8220;gold standard&#8221; of evidence often produces &#8220;useless&#8221; results because it ignores the social and political context\u2014the very &#8220;alliances&#8221; Pinsof describes.<\/p>\n<p>Edward Leamer: He wrote the classic paper Let&#8217;s Take the Con out of Econometrics. He argues that most empirical work is &#8220;whimsical&#8221; because researchers keep trying different models until they find the one that gives them the result they wanted to see.<\/p>\n<p>These critics form a counter-alliance. They use &#8220;open science&#8221; as a purification ritual of their own, claiming that by being transparent, they are more &#8220;honest&#8221; than the prestige cartels at places like Berkeley or Harvard.<\/p>\n<p>This list confirms the &#8220;iron law&#8221; of academic status: critique from outsiders like Gelman rarely results in a loss of position. Instead, the &#8220;prestige cartel&#8221; typically responds by absorbing the critique (the &#8220;pivot&#8221; to transparency or open science) or by ignoring it until the critic lacks the social capital to continue the fight.<\/p>\n<p>The &#8220;iron law&#8221; of academic status functions as a self-correcting immune system for elite institutions. When an outsider like Andrew Gelman identifies a catastrophic flaw in the work of a Nobel laureate, the institution does not collapse. Instead, it engages in what David Pinsof would call strategic coordination to preserve its monopoly on prestige.<\/p>\n<p>This process moves through three distinct phases:<\/p>\n<p><strong>Phase 1: The Ritual of Indifference<\/strong><\/p>\n<p>The first move is always silence. In a prestige cartel, attention is the most valuable currency. By ignoring a critic, the cartel denies them the social capital required to enter the &#8220;alliance.&#8221; If a Berkeley chair ignores a blog post, they are signaling that the post is &#8220;not even wrong&#8221;\u2014it is socially nonexistent. This is why you rarely see direct rebuttals; a rebuttal is a transfer of status.<\/p>\n<p><strong>Phase 2: The Transparency Pivot<\/strong><\/p>\n<p>If the criticism becomes too loud to ignore\u2014as seen during the replication crisis\u2014the cartel performs a purification ritual. They do not admit the original work was &#8220;BS.&#8221; Instead, they become the champions of the &#8220;new standards&#8221; designed to fix the problem.<\/p>\n<p>The Move: They launch &#8220;Open Science&#8221; initiatives or &#8220;Transparency&#8221; centers.<\/p>\n<p>The Result: They now control the definition of &#8220;rigor.&#8221; By being the ones to &#8220;solve&#8221; the replication crisis, they ensure that they remain the gatekeepers. They effectively say, &#8220;Yes, science had a problem, and we are the only ones qualified to fix it.&#8221;<\/p>\n<p><strong>Phase 3: Absorption and Defanging<\/strong><\/p>\n<p>The cartel eventually absorbs the critic&#8217;s vocabulary but strips it of its sting.<\/p>\n<p>Gelman\u2019s &#8220;Type M&#8221; errors become a standard &#8220;limitation&#8221; section in a new Berkeley paper.<\/p>\n<p>&#8220;P-hacking&#8221; becomes a technical hurdle that their new, more complex (and harder to critique) models have supposedly overcome.<\/p>\n<p>This absorption serves a dual purpose: it makes the critic look like they are &#8220;harping on the past,&#8221; and it updates the &#8220;patchwork narrative&#8221; to look more scientifically robust without changing the underlying power structure.<\/p>\n<p><strong>Why Status is Immutable<\/strong><\/p>\n<p>The reason figures like James Heckman or the Labor Bloc at Berkeley do not lose their positions is that their value to the alliance is not their &#8220;truth&#8221; but their utility. They provide the &#8220;intellectual ammunition&#8221; for state governments and global NGOs. As long as Sacramento needs a justification for the minimum wage, and the IMF needs a narrative for inequality, the Berkeley alliance remains indispensable. The &#8220;iron law&#8221; ensures that as long as the patronage flows, the prestige remains intact.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Written with AI: Statistician Andrew Gelman has a long-standing reputation for using his blog, Statistical Modeling, Causal Inference, and Social Science, to dismantle &#8220;junk science&#8221; and &#8220;p-hacking&#8221; wherever he finds it. While he often focuses on psychology, he has directed &hellip; <a href=\"https:\/\/lukeford.net\/blog\/?p=169862\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[162],"tags":[],"class_list":["post-169862","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=\/wp\/v2\/posts\/169862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=169862"}],"version-history":[{"count":6,"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=\/wp\/v2\/posts\/169862\/revisions"}],"predecessor-version":[{"id":169904,"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=\/wp\/v2\/posts\/169862\/revisions\/169904"}],"wp:attachment":[{"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=169862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=169862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lukeford.net\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=169862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}