Economic Rockstar

Connecting Brilliant Minds in Economics and Finance

066: Best of 2015 Part 2: A Look Back at the Economic Rockstar Podcast

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2015 Part 1 (1)

This is the second part of the ‘Best of 2015’ of the Economic Rockstar podcast.

This episode provides you with a glimpse of what type of guests and conversations I’ve had on the show this past year.

Previous episodes that feature in this Best of 2015 are:

022 Josh Angrist on Taking the Con Out of Econometrics

060 Manu Saadia on Trekonomics – The Economics of Star Trek: Scarcity, Productivity and Public Goods

017 Marina Adshade on Understanding Economics the Sexy and ‘Hard’ Way

049 Jon Haywood with Jez Groom on How a Cleverly Designed Nudge Can Change People’s Behavior – Including How We Pee

019 Mark Thornton on the Decriminalization of Marijuana and the Skyscraper Curse

027 Craig Medico on How Economics Saved My Career, How I’m Embracing Technology in the Classroom and Why I’m off to Wrestling School

020 George Magnus on The Age of Ageing, China and the EU

028 Alice Louise Kassens on Nudging Students to Study Economics and Why Mainstream Media Should Publish Research on Mental Health

030 Kim Holder on Rockonomix and Teaching Economics Through the Lens of Sport, Music and Movies

045 Jon Manning on the Art of Pricing and How Economic Theory Has Got Pricing All Wrong

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065: Best of 2015 Part 1: A Look Back at the Economic Rockstar Podcast

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2015 Part 1

I’m Frank Conway and I am the host of the Economic Rockstar podcast. I do my best to bring on the brightest and most meaningful guests onto the show. Thank you so much listening and thank you for subscribing to the show on iTunes.

For those of you who have subscribed to the Economic Rockstar community at economicrockstar.com, I thank you for your feedback, interaction and shared insights and views. Let’s build this community bigger, both in size and knowledge.

I’m so grateful to have been in a position to bring to you a wide variety personalities to the show. While reflecting on the year 2015 for the podcast, I was amazed by the diversity and caliber of my guests and the incredible conversations we’ve had.

Their research, books, opinions, outlook, personal stories and teaching pedagogies is, to say the least, quite inspiring and has personally opened my eyes to the boundless capabilities in economics and finance. I truly hope that you found it to be likewise.

Both the end of year ‘Best of 2015’ episodes gives us a snapshot of some topics that were discussed – like a time capsule for the Economic Rockstar podcast of 2015. If you’ve been with me all year, then this episode will act as a refresher and take you back to some of the debates that abound the fields of economics.

If you’re new to the show or relatively new, then perhaps these episodes will offer you a window to glimpse into the show and type of guests and topics that we cover. Hopefully, they will encourage you to explore and listen to previous episodes of the podcast. For a full listing, you can visit economicrockstar.com/podcasts.

Although I did my utmost to choose a best of compilation that captured the essence of this podcast, it was extremely difficult to leave out some of my amazing guests.

I loved all my guests and every single one of them gave up their time to speak to me about their career, their research and personal lives. They exposed themselves to you, my amazing listeners, and answered questions that they had not seen before.

It was almost impossible to choose who to leave in and that’s why I reached to my Community on my email list for their favorites. Thanks for a great response. If I left out one of your favorites, then I apologize as I know how you feel. I’ve provided all the links to the show notes at the economic rockstar website at economicrockstar.com/65.

This is my mix-tape, my compilation of Economic Rockstars, so press play and do what you love doing while you listen – crosswords, chess, darts, exercise, walking the dog or cleaning the house.

What’s compelling about the guests on my show is how much of the work that they do is for the betterment of society as a whole.

The teaching innovations adopted and applied by John Cochrane, Kim Holder, Shawn Humphrey, Marina Adshade, Abdullah Al-Bahrani, Matt Rousu, Alice Lousie Kassens and Craig Medico have created an active rather than a passive economics classroom, helping their students to better understand concepts and how to apply them in a meaningful way.

Others guests, such as Jason Shogren, Alvin Roth, Dan Ariely, Helena Norberg-Hodge, David Simon, David Zetland, Stephen Young, Shanta Deverajan, Shawn Humphrey and Christine Exley have used their knowledge as a platform to help those in need – be it humans, animals or our environment.

The Economic Rockstar podcast also invites guests with a career in finance and it was such a pleasure to have spoken to Jack Schwager and Campbell Harvey.

Guests who feature in the Best of 2015 Part 1:

050 Dan Ariely -Professor of Psychology & Behavioral Economics at Duke University in North Carolina. 

057 Alvin Roth – Craig and Susan McCaw Professor of Economics at Stanford University.

043 Herbert Gintis – Emeritus Professor of Economics at University of Massachusetts.

036 Jason Shogren – the Stroock Professor of Natural Resource Conservation and Management and Chair of the Department of Economics and Finance at the University of Wyoming.

034 David Simon – lawyer and advocate for sustainable consumption. 

023 Loretta Napoleoni – expert on terrorist financing and the Islamic State.

048 Steve Hanke – Professor of Applied Economics, specializing in currency boards. He is Co-Director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at The Johns Hopkins University in Baltimore.

051 Eyal Winter – the Silverzweig Professor of Economics at the Hebrew University and Economics Professor at Leicester University.

054 Christine Exley – Professor of Business Administration at Harvard Business School. Christine is also Co-founder and Chief of Research at Wagaroo an organization dedicated to re-house homeless dogs to responsible and loving families.

046 Shanta Devarajan – Chief Economist of the World Bank’s Middle-East and North Africa Region.

059 Shawn Humphrey – Associate Professor of Economics at the University of Mary Washington. Shawn is the founder of La Ceiba Microfinance,the Two Dollar Challenge, the Month of Microfinance, and the Poverty Action Conference. 

016 Jack Schwager – industry expert in futures and hedge funds and the author of a number of widely acclaimed financial books. Jack is one of the founders of Fund Seeder.

037 Noah Smith – Assistant Professor of Finance at Stony Brook University, New York where he is also a member of the Center for Behavioral Finance research team.

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062: Stephen Terry on Real Business Cycles, Total Factor Productivity, Short-Termism and Doing a PhD

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062: Stephen Terry on Real Business Cycles, Total Factor Productivity, Short-Termism and DoiStephen_Terryng a PhD

Stephen Terry is Assistant Professor of Economics at Boston University.

In 2013 he was a Dissertation Intern, Federal Reserve Bank of Richmond and, from 2007 to 2009, Stephen was a Research Associate at the Federal Reserve Bank of Kansas City.

Stephen  received a PhD in Economics from Stanford University in 2015 as well as an  MA in Economics in 2011.

Stephen also has an MA in Mathematics from the University of Oklahoma and a BA in Economics from University of Texas at Arlington.

Stephens research interests include short-termism, uncertainty and real business cycles.

One of the most important summary statistics in macroeconomics is a measure known as TFP or total factor productivity of the economy as a whole – Stephen Terry

Economics:

In this interview, Stephen mentions: labor markets, double coincidence of wants, selection markets, matching markets, algebraic topology, total factor productivity, real business cycles, economic shocks, volatility, variance, risk, uncertainty, aggregate output, employment, investment, allocation of inputs, uncertainty, earnings, profits, short-termism and the Principle-Agent Problem.

Economists:

In this interview, Stephen mentions: Christine Exley, Nick Bloom, John Van Reenen and John Maynard Keynes.

In this episode you will learn:

  • about Stephen’s experience with the two-body or joint location problem.
  • about Stephen’s PhD process and the experience he developed along the way.
  • of some suggestions if you’re considering undertaking a PhD.
  • the differences and similarities in the mathematics of economics and the mathematics of other disciplines such as physics and chemistry.
  • if there is a divergence or a convergence in the branches of macroeconomics and microeconomics.
  • what really happens during recessions.
  • how firms can learn and react to the data provided at a micro level.
  • what Total Factor Productivity is.
  • about Real Business Cycle theory.
  • whether changes in uncertainty causes or amplifies recessions.
  • whether managers should forego the long-term objectives of the firm due to the pressures of short-termism.
  • whether rating agencies are beneficial to investors or if they potentially hinder the growth prospects of the firm due to short-term pressures and expectations.

Preparation for Life as a Research Economists into 2 Stages:

1) Useful things that you can be doing before graduate school.

You have to study Math. Economics at graduate level is increasingly dominated by the technical and quantitative research methods.

Having some practical experience in the application of mathematics in economics is not not only valuable for later on in your career but is now becoming a pre-condition to gaining access to research-intensive PhD programmes.

If your undergrad or Masters degree lacks math rigour, then you should consider building on your current level of math by undertaking a math PhD programme.

3) The ways in which you can maximise the benefits you get in your PhD training.

You should consider becoming a Research Assistant prior to starting your PhD so that you gain the practical experience.

This will put you in a situation in which you can be mentored and instructed by other economists who are undertaking economics and statistical research projects.

Being exposed to this will offer you an insight into the research process as well as ‘train’ you to become quite efficient and structured in terms of time management and application.

On the Use of Math in Economics:

At its core, math and applied mathematical techniques, but also pure mathematical proof-based reasoning, are ways to go from some set of assumptions to a coherent set of conclusions that you know follow logically without inconsistency from those assumptions.

By harnessing that logical consistency, economics is something, in the last few decades, that has been able to harness a great deal of precision in the statements that it’s able to make. But still at its core, where the debate centres, you have to understand that the assumptions that we make are primarily assumptions about people. Economic actors sometimes go their own way and don’t always follow perfectly the rules or logical coherent types of assumptions that we start with as an economist.

There’s a great deal of power and precision that is gained by math but this underlying realisation that we’re dealing with individuals rather than physical particles that you would use in physics is something that an economist has to keep in mind when they do think about the real world.

Papers:

Sources:

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061: Roger Whitney on the Myths to Retirement Planning and the Lazy Mans Method to Saving

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061: Roger Whitney on the Myths to Retirement Planning and the Lazy Mans Method to Saving

Roger Whitney began his career as a Financial Advisor in 1991 and witnessed first-hand the rise and fall of the ‘New roger whitneyEconomy’ and the Dot-com bubble that ended in 2000.

This experience made Roger realise that financial management is about people, not money, and that they are served best by advisors that are fiduciaries to their clients and have the heart of a teacher.

In 2003 Roger left, at the time, the largest private bank in the world and co-founded WWK Wealth Advisors. Today, they are a firm of 14 professionals managing over $200 million in assets.

Roger is a lifelong learner and holds many degrees and certifications. He has a B.A. in International Relations, is a Certified Investment Management Analyst and a Certified Private Wealth Advisor.

Roger also teaches courses on Wealth Management, Retirement Planning and Employee Benefits.

Roger’s blog, The Retirement Answer Man, was recently awarded the 2015 PLUTUS award for the best Retirement focused blog and podcast. You can check it out at rogerwhitney.com as well as on iTunes.

Advice:

“Make sure you make the most of the only life you have. Retirement is part of that but don’t miss where you’re at today” – Roger Whitney

Economics/Finance:

In this interview, Roger mentions: the Permanent Income Hypothesis, retirement, retirement planning, pensions, social security, demographics, baby boomers, capitalism, growth, IRAs, Roth IRAs, 401k, quantitative easing, real estate, cash flow, investment, private placement memorandum and capital rates.

Economists:

In this interview, Roger mentions: Milton Freidman

In this episode you will learn:

  • the problem with budgeting.
  • develop one habit to control your budgeting needs and requirements.
  • lazy man’s method to saving.
  • four myths that could ruin your retirement and how to avoid them.
  • the Permanent Income Hypothesis.
  • how Roger got his cashflow in place when setting up his business.
  • that cutting your cable bill won’t create the opportunity to generate income.
  • the biggest regrets that people have when they retire.
  • the 3 Phases of Retirement.
  • whether we have a pension time bomb or if capitalism will reduce the risks.
  • what are IRAs and Roth IRAs work.
  • the possible scenario for the next generation to fund a bankrupt social security in the US.

Quotes by Roger in Episode 61 0f the Economic Rockstar podcast:

The bigger opportunity is how to generate extra income – Roger Whitney

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“I know quantitative easing. I know how bad all this stuff might be. At the end of the day, we just have to have out own house in order. And if we have our own house in order, we can insulate ourselves from a lot of things. That’s the only way I know how to get through things.” – Roger Whitney

4 Myths that Could Ruin Your Retirement and How to Avoid Them:

  1. Retirement is not a number: How much do I need to save for retirement?
  2. You’re spending is going to be consistent throughout your retirement.
  3. Retirement means not working.
  4. Having a financial plan is enough.

3 Phases of Retirement:

  1. The Go-Go Years
  2. The Slow-Go Years
  3. The No-Go Years

Books:

  • QBQ! the Question Behind the Question: Practicing Personal Accountability at Work and in Life by John G. Miller

  • The How of Happiness: A New Approach to Getting the Life You Want by Sonja Lyubomirsky

Podcasts:

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060: Manu Saadia on Trekonomics – The Economics of Star Trek: Scarcity, Productivity and Public Goods

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060: Manu Saadia on Trekonomics – The Economics of Star Trek: Scarcity, Productivity and Public Goods

Manu Saadia fell into science fiction and Star Trek fandom at the age of eight, back in Paris, France, where he was born and raised.Manu Saadia

Manu  studied history of science and economic history in Paris and Chicago. After many happy years in the Ivory Tower, he yielded to his childhood passion for the future.

Manu embarked on his continuing mission to explore strange new worlds by boldly going where many have gone before: Los Angeles, CA, where he advise and (occasionally) builds tech companies.

Manu received the 2005 Wayne C. Booth Graduate Student Prize for Excellence in Teaching at the University of Chicago.

His book, Trekonomics, is currently available for pre-order at www.inkshares.com and will be released in 2016.

Star Trek offers much more detail about its own world and the way its economics actually works – like the plumbing so to speak. So that’s what I wanted to do. Go into the plumbing of Star Trek. – Manu Saadia

Economics:

In this interview, Manu mentions:  trekonomics, crowd funding, labor, economic history, trade, robots, capitalism, comparative advantage, currency, money, Gold-Pressed Latinum, public goods, conspicuous consumption, scarcity, peak oil, productivity and opportunity costs.

Economists:

In this interview, Manu mentions: Brad DeLong, Felix Salmon, Adam Smith, Thomas Malthus, Hubbert, Paul Ehrlich, Julian Simon, Romer, Larry Summers, John Maynard Keynes and Angus Deaton,

In this episode you will learn:

  • why Manu Saadia wrote Trekonomics.
  • about the Star Trek Economics panel at Comic Con.
  • why economists love Star Trek.
  • about inkshares and how it can help authors publish their book.
  • how traditional media rather than social media boosted pre-order sales of Trekonomics – an ironic outcome.
  • when Manu’s interested in economics and Star Trek collided.
  • about the work of Isaac Asimov and how his stories are a discourse on economics.
  • how the stories of robots and the future by Asimov influenced and shaped the storyline in Star Trek.
  • about the replicators in Star Trek and how they solve the problem of economic scarcity.
  • about the Ferengi’s and how they represent capitalism and trade.
  • why The Federation or the humans in Star Trek do not use money but have a foreign account to trade with the Ferengi’s.
  • about the Ferengi’s currency, Gold-Pressed Latinum, which cannot be replicable.
  • why owning a replicator is a ‘pain in the ass’.
  • how things that cannot be replicated has value but those that can be replicated has no value.
  • if Keynes’ The Economic Possibilities of Our Grand Children is a rebuttal of the writings of H. G. Wells.
  • about GPS being a public good and the benefits it has brought to the public.
  • why making GPS a public good in 1983 was one of the best decisions Ronald Reagan made as US President.
  • Manu’s favourite Star Trek episode is Lower Decks (The Next Generation).

Quotes by Manu Saadia in Episode 60 of the Economic Rockstar Podcast:

Trekonomics got a lot of support and very nice feedback from a lot of economists – Manu Saadia

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“It always baffles me when you have these very famous and serious economic thinkers were in fact  total Star Trek nerds. I was on a panel at New York Comic Con with Brad DeLong, Paul Krugman and Annalen Newitz from i09. There was Chris Black as well and Felix Salmon.” – Manu Saadia

Brad DeLong came to the panel with a Star Trek hoodie. – Manu Saadia

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On Isaac Asimov: “All of his work is a long meditation on economics, either foundation where there is this science called psychohistory which is in fact a fictional mathematical modelling of human behaviours on the scale of societies on a galactic scale.” – Manu Saadia

“One of the reasons why I wanted to study economics was that I was fascinated by and really wanted to understand the transformation of humanity’s relation to its own labor. This is one of the great questions of political economy because it determines a lot of things when it comes to the shape society and the role of the state and how behaviors are determined and constructed over time. But it’s also the key to understanding where we’re going”. – Manu Saadia

“I would say the replicators are more of a metaphor. If you look at their status in the series, they do not help move the narratives forward. They’re just there to signify that there’s no need to work. They’re a little bit like robots in Asimov. They have the same narrative function, which is to show and demonstrate that post-scarcity does exist and is based on automation and artificial intelligence.” – Manu Saadia

The Ferengi’s are the capitalist, merchant traders of the galaxy – Manu Saadia

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Most of the stuff in Star Trek is basically a public good – Manu Saadia

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I think Star Trek is very much what Keynes described in The Economic Possibilities of Our Grand Children – Manu Saadia

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Books:

  • Scatter, Adapt, and Remember by Annalen Newitz 
  • Isaac Asimov
  • Frankenstein by Mary Shelly
  • The Economic Possibilities of Our Grand Children by John Maynard Keynes

Papers:

  • Romer (1990) Productivity Gains

Links:

Manu’s Favorite Star Trek Epsiodes:

  • City on the Edge of Forever
  • Arena

Where to Find Manu:

Music:

  • Star Trek Episode Amok Time

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