Harvard University Department of Economics Sex, Drugs, and Rock & Roll Economics 970 Sophomore Tutorial Course Readings Spring 2005 Teaching Fellows Jolie Martin and Anthony Niblett 1 SEX, DRUGS, AND ROCK & ROLL: A LAW AND ECONOMICS PERSPECTIVE Jolie Martin jolie@hbs.edu (617) 493-2154 Section 1: Monday and Wednesday 6:30pm-8:00pm Dunster House, Room F-15 Anthony Niblett niblett@fas.harvard.edu (617) 335-9487 Section: Tuesday and Thursday 7:00pm-8:30pm Pforzheimer House, Moors Seminar Room 2 Section 2: Tuesday and Thursday 4:00-5:30pm Dunster House, JCR Course Description This course applies economic principles to various public policy concerns outside the realm of traditional economic analysis. We shall examine behavior that some regard as irrational and the product of social maladjustment, and ask to what extent -- and in what contexts -- these behaviors can be considered rational and utility maximizing. Key themes that run throughout the course include marginal cost-benefit analysis, differential discounting of future costs and benefits, and different attitudes toward risk. Topics include crime and punishment; drug addiction and legalization; discrimination; sex, marriage, and divorce; obesity; gambling; and the phenomenon of superstardom in fields such as music and sports. Class discussion and written economic analysis form the bulk of the coursework. The final paper serves as an opportunity to analyze and reach conclusions about a novel, non-traditional economic issue. Mathematical Difficulty Rating: 1.5 2 Assignments and Grading 1. Class Participation (20% of grade): Student participation is essential in the sophomore tutorial. Attendance is mandatory. Students should read the assigned material before class and should come to tutorial with questions and comments. The goal is for each student to be engaged in the discussion not simply with the instructor, but also with your fellow students. 2. Papers (30% of total grade; 10% for each of three papers): Three papers of roughly six pages in length will be assigned. These assignments may ask, for example, for a response to or critique of various readings, a comparison between theories, or an application of concepts discussed in class to new subject matter. 3. Empirical Exercise (10% of grade): Students will analyze a data set relating to a subject considered in class readings or discussion. 4. Final Paper (40% of total grade; A and B count for 10% and C counts for 30%): A. Prospectus: Students will prepare a basic outline and description of completed research for the final paper. B. Student-Led Discussion: Each student assigns as class reading an article from an economic journal used as research for his or her final paper and then leads a class discussion of that article. C. Final Paper: An exploration and extension, utilizing economic analysis, of a topic touched upon in the course. 3 How to put together your course-pack 1. Please note that you must read all the readings. The following may sound a bit complicated, but is partly driven by copyright clearance and partly to give you more choices of how to access the readings. We have no preference for how you access the readings, so long as you do access all of them. 2. URLs and electronic access: The syllabus has URLs for electronic access. This means that the reading is accessible via the Harvard Library E-Resources system. Please note however that most but not all of these work directly: apologies! However, if there is a URL, it does mean electronic access is possible. If the URL does not work, best to try either EconLit OVID (for journals) or LexusNexis (for newspaper and magazine articles). 3. First day’s reading: This is available electronically. 4. Rest of Course: You have a choice of how to access the bulk of the material. There is a folder at Lamont with five readings for you to photocopy (as for these copyright clearance for the course-pack was not granted). These are marked in the syllabus as “On reserve at library”. In addition, three of these readings are also available electronically and are marked in the syllabus “On reserve at the library and electronically”. Hence, you can decide how best to access these five readings. We encourage you to go early to copy these readings as we are only allowed to leave one folder for students in both sections. For all the other readings, you must purchase the course pack (14 readings) and access all the other readings electronically (26 readings). The course pack is available at BFS printers, and includes only those readings that are not accessible electronically (e.g., sections of books or journals that are not available electronically). 4 COURSE OUTLINE AND READINGS I. Introduction Meeting #1: Becker, Gary, Nobel Lecture: “The Economic Way of Looking at Behavior,” Journal of Political Economy, vol. 101, 385-409 (June 1993) http://links.jstor.org/sici?sici=0022-3808%28199306%29101%3A3%3C385%3ANLTEWO%3E2.0.CO%3B2-X Meeting #2: (Econometrics Day) Fair, Ray C (2002) Predicting Presidential Elections and Other Things, Ch 2, pp. 16-41 [Course packet] Waldfogel, Joel, “The Deadweight Loss of Christmas,” American Economic Review, vol. 83(5), pp. 1328-1336 (1993) http://80proquest.umi.com.ezp1.harvard.edu/pqdlink?index=25&did=000000000128708&SrchMode=3&sid=1&Fm t=6&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1076966298&clientId=11201 II. Crime and Punishment Meeting #3: Barclay, Gordon, Cynthia Tavares, and Arsalaan Siddique, “International Comparisons of Criminal Justice Statistics 1999”, Home Office Statistical Bulletin, Issue 6/01 (May 2001) [On reserve at the library and electronically] http://www.homeoffice.gov.uk/rds/pdfs/hosb601.pdf Schelling, Thomas C., “Value of Life,” New Palgrave Social Economics, Eds. John Eatwell, et. al., pp. 269-275 (1989) [Course packet] Cooter, Robert and Thomas Ulen, Law and Economics, Chapter 11, pp. 427-454 (2000) [Course packet] 5 Meeting #4: (First Paper Assigned) Cooter, Robert and Thomas Ulen, Law and Economics, Chapter 12, p. 455-488 (2000) [Course packet] Kahan, Dan M. and Eric A. Posner, “Shaming White-Collar Criminals: A Proposal for Reform of the Federal Sentencing Guidelines”, Journal of Law and Economics, vol. XLII (April 1999) http://80www.journals.uchicago.edu.ezp2.harvard.edu/JLE/journal/issues/v42nS1/JLEv42p365/JLEv42p365.web.pdf Meeting #5: Donohue, John J. III and Peter Siegelman, “Allocating Resources Among Prisons and Social Programs in the Battle Against Crime,” Journal of Legal Studies, vol. 27, pp. 1-43 (January 1998) http://80-www.journals.uchicago.edu.ezp1.harvard.edu/JLS/journal/issues/v27n1/JLSv27p1/JLSv27p1.web.pdf Donohue, John J. III and Steven D. Levitt, “The Impact of Legalized Abortion on Crime”, The Quarterly Journal of Economics, Vol. CXVI, May 2001, Issue 2. http://80thesius.ingentaselect.com.ezp1.harvard.edu/vl=24853990/cl=64/nw=1/rpsv/cw/mitpress/00335533/v116n2/s1/p379 III. Gambling Meeting #6: (First Paper Due) Thompson, William N., Legalized Gambling, pp. 25-32, 48-88 (1997) [Course packet] Clotfelter, Charles T. and Philip J. Cook, Chapter 11 (“A ‘Painless Tax?’”), Selling Hope: State Lotteries in America, pp. 215-234 (1989) [Course packet] IV. Drug Addiction and Legalization Meeting #7: 6 Becker, Gary, Michael Grossman, and Kevin Murphy, “Rational Addiction and the Effects of Price on Consumption,” 81(2) American Economic Review, pp. 237-241 (1991) http://links.jstor.org/sici?sici=0002-8282%28199105%2981%3A2%3C237%3ARAATEO%3E2.0.CO%3B2-1 Becker, Gary, and Kevin Murphy, “A Theory of Rational Addiction,” 96 J. Political Economy, pp. 675-700 (1988) http://links.jstor.org/sici?sici=0022-3808%28198808%2996%3A4%3C675%3AATORA%3E2.0.CO%3B2-H Akerlof, George A., “Procrastination and Obedience,” 81(2) American Economic Review, pp. 119 (1991) http://links.jstor.org/sici?sici=0002-8282%28199105%2981%3A2%3C1%3APAO%3E2.0.CO%3B2-W Meeting #8: (Second Paper Assigned) Miron, Jeffrey and Jeffrey Zwiebel, “Alcohol Consumption During Prohibition,” 81 A.E.A. Papers and Proceedings, pp. 242-247 (1991) http://links.jstor.org/sici?sici=0002-8282%28199105%2981%3A2%3C242%3AACDP%3E2.0.CO%3B2-Z Levitt, Steven and Sudhir Venkatesh, “An Economics Analysis of a Drug-Selling Gang’s Finances,” The Quarterly Journal of Economics, 115 (No. 3) , pp. 755-789, (August 2000) http://80titania.ingentaselect.com.ezp1.harvard.edu/vl=5099485/cl=23/nw=1/rpsv/cw/mitpress/00335533/v115n3/s2/p755 Meeting #9: McBride, Duane C., Yvonne M. Terry, James A. Inciardi, “Alternative Perspectives on the Drug Policy Debate,” The Drug Legalization Debate, ed. James Inciardi, pp. 9-54 (1999) [Course packet] Miron, Jeffrey and Jeffrey Zweibel, “The Economic Case Against Drug Prohibition,” 9(4) Journal of Economic Perspectives 175-192 (1995) http://links.jstor.org/sici?sici=0895-3309%28199523%299%3A4%3C175%3ATECADP%3E2.0.CO%3B2-S Miron, Jeffrey, “Violence, Guns, and Drugs: A Cross-Country Analysis”, Journal of Law and Economics, vol. XLIV (October 2001) http://80-www.journals.uchicago.edu.ezp2.harvard.edu/JLE/journal/issues/v44nS2/012211/012211.web.pdf V. Discrimination 7 Meeting #10: (Second Paper Due; Econometric Exercise Assigned) Ehrenberg, Ronald G. and Smith, Robert S. Modern Labor Economics, Chapter 12 ("Race, Gender, and Ethnicity in the Labor Market"), pp. 377-422 (2003). [On reserve at the library] Becker, Gary, “Working Women's Staunchest Allies: Supply and Demand,” Business Week, December 2, 1991, p. 18. http://80-web.lexisnexis.com.ezp2.harvard.edu/universe/document?_m=00ddf095c7b8f81332650bc7e6dcb6c0&_docnum=1&wchp=d GLbVlb-zSkVA&_md5=7003d7d8d1e1ab41f38cd039b25910af Meeting #11: Becker, Gary, “An Economic Theory of Discrimination” in Discrimination, Affirmative Action, and Equal Opportunity, Eds. W.E. Block and M.A. Walker, Chapter 4, p. 128-141 (1982) [Course packet] Ayres, Ian and Peter Siegelman, “Race and Gender Discrimination in Bargaining for a New Car,” 85(3) American Economic Review, pp. 304-321 (1995) http://links.jstor.org/sici?sici=0002-8282%28199506%2985%3A3%3C304%3ARAGDIB%3E2.0.CO%3B2-W VI. Sex, Marriage, and Divorce Meeting #12: Angier, Natalie, “Women, Sex, and Darwin”, New York Times Magazine, p. 48-53, (Feb. 21, 1999) [On reserve at the library and electronically] http://80-web.lexisnexis.com.ezp2.harvard.edu/universe/document?_m=f32342ad2be8b1b7709833fee2509337&_docnum=5& wchp=dGLbVlb-zSkVA&_md5=b863225bae1dacaea941810e8a10fe17 Posner, Richard, Sex and Reason, Chapters 3 and 5, pp. 70-82, 111-144 (1992) [Course packet] Meeting #13: (Econometric Exercise Due) Lundberg, Shelly and Robert A. Pollak, “Bargaining and Distribution in Marriage,” Journal of Economic Perspectives, pp. 139-158 (1996) 8 http://links.jstor.org/sici?sici=0895-3309%28199623%2910%3A4%3C139%3ABADIM%3E2.0.CO%3B2-D Goldin, Claudia and Lawrence Katz, “The Power of the Pill: Oral Contraceptives and Women’s Career and Marriage Decisions”, Journal of Political Economy, vol.100, no.4, pp. 730770 (August 2002) http://www.economics.harvard.edu/~goldin/papers/pillpaper.pdf Smith, Ian, “Privatising Marriage: How to Create Appropriate Incentives to Invest in Marriage”, New Economy Vol. 8 (1). p. 58-61. March 2001. http://80www.ingenta.com.ezp2.harvard.edu/isis/shopping/cart/ShoppingCart/ingenta;jsessionid=2k3t5rmkqnft9.crescent Meeting #14: (Meet to talk about Final Paper Topic during this week) Hewiston, Gillian, "The Market for Surrogate Mother Contracts", The Economic Record, No. 222, Vol. 73 (Sept. 1997) 212-224. http://80proquest.umi.com.ezp1.harvard.edu/pqdlink?index=19&did=000000021845297&SrchMode=3&sid=2&Fmt=6&VI nst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1074312959&clientId=11201 Mauldon, Jane Gilbert, "Providing Subsidies and Incentives for Norplant, Sterilization and Other Contraception: Allowing Economic Theory to Inform Ethical Analysis", Journal of Law, Medicine and Ethics, Vol. 31, Iss. 3 (22 September 2003) 351. http://80-search.epnet.com.ezp1.harvard.edu/direct.asp?an=11277044&db=aph&loginpage=Login.asp VII. Teenage Pregnancy Meeting #15: Akerlof, George, Janet Yellen and Michael Katz, “An Analysis of Out-Of-Wedlock Childbearing in the United States,” The Quarterly Journal of Economics, pp. 277-317 (1996) http://links.jstor.org/sici?sici=0033-5533%28199605%29111%3A2%3C277%3AAAOOCI%3E2.0.CO%3B2-V Wolfe, Barabara, Kathryn Wilson, and Robert Haveman, "The Role of Economic Incentives in Teenage Nonmarital Childbearing Choices”, Journal of Public Economics, 81 (2001) 473-511. http://80-www.sciencedirect.com.ezp1.harvard.edu/science?_ob=ArticleURL&_udi=B6V76-43GH12C6&_user=209690&_handle=W-WA-A-A-D-MsSAYVA-UUA-AUDVVWCADV-AEWZVWZCE-DU&_fmt=full&_coverDate=09%2F30%2F2001&_rdoc=6&_orig=browse&_srch=%23toc%235834%2320 01%23999189996%23255464!&_cdi=5834&view=c&_acct=C000014438&_version=1&_urlVersion=0&_ userid=209690&md5=714fdefebf40057df5c6192db26ff9df 9 VIII. Prostitution Meeting #16: Edlund, Lena and Evelyn Korn, “A Theory of Prostitution”, Journal of Political Economy, 2002, vol. 110, no.1 http://80-www.journals.uchicago.edu.ezp2.harvard.edu/JPE/journal/issues/v110n1/100104/100104.web.pdf Barri Flowers, R., “The Sex Trade Industry’s Worldwide Exploitation of Children”, The Annals of The American Academy, AAPSS, 575, May 2001. [On reserve at the library and electronically] http://80ft.csa.com.ezp1.harvard.edu/htbin/ids64/process_pdfrequest.cgi?an=10%2e1177%2f0002716201575001009&db=sa gepol%2dset%2dc&us=1074314851&ssparm=27197ddd5ee6d414df06e35d3239b194&issn=0002-7162ø VIII. Obesity Meeting #17: (Third Paper Assigned) "Make it cheaper, and cheaper." The Economist, 13 December 2003. http://80-web.lexisnexis.com.ezp2.harvard.edu/universe/document?_m=247b5e48e1edce2c253e322f4a0c8e5f&_docnum=2& wchp=dGLbVtz-zSkVA&_md5=9f09c6c412b80463dd0ed7931bfbab24 Lakdawalla, Darius and Tomas Philipson, “The Growth of Obesity and Technological Change: A Theoretical and Empirical Examination,” NBER Working Paper 8946 (2002) http://80-papers.nber.org.ezp1.harvard.edu/papers/w8946.pdf Cutler, David M., Edward L. Glaeser, Jesse M. Shapiro. "Why have Americans become more obese?", The Journal of Economic Perspectives, Nashville: Summer 2003. Vol. 17, Iss. 3; p. 93 http://80-hermia.ingentaselect.com.ezp1.harvard.edu/vl=6061311/cl=18/nw=1/rpsv/cw/aea/08953309/v17n3/s5/p93 IX. Sports and Entertainment Meeting #18: (Final Paper Prospectus Due) 10 Frank, Robert H. and Philip J. Cook, The Winner-Take-All Society, Chapter 2, pp. 23-44, Chapter 7, pp. 125-127 (1995) [Course packet] Rosen, Sherwin, “The Economics of Superstars”, 71 American Economic Review, pp. 845-858 (1981) http://links.jstor.org/sici?sici=0002-8282%28198112%2971%3A5%3C845%3ATEOS%3E2.0.CO%3B2-R Meeting #19: Bernstein, David, "Songwriters Say Piracy Eats Into Their Pay", The New York Times, 5 January 2004 http://80-web.lexisnexis.com.ezp2.harvard.edu/universe/document?_m=955d6bb4267aca982ceda978b4609eb7&_docnum=1&wchp=d GLbVtz-zSkVA&_md5=0199d03daa30753bdae7b58a350c8195 Caves, Richard E. "Organizing to Collect Rents: Music Copyrights," in Creative Industries: Contracts Between Art and Commerce, Cambridge: Harvard U Press, 2000, 297-313. [Course packet] Spar, Debora L. "Space Music," in Ruling the Waves: Cycles of Discovery, Chaos and Wealth from the Compass to the Internet, New York: Harcourt, 2001, 327-366. [On reserve at the library] Meeting #20: (Third Paper Due) McCormick, Robert E. and Robert D. Tollison, “Crime on the Court,” Journal of Political Economy, vol. 92(2), pp. 223-235 (1984) http://links.jstor.org/sici?sici=0022-3808%28198404%2992%3A2%3C223%3ACOTC%3E2.0.CO%3B2-4 Lucifora, Claudio and Rob Simmons, “Superstar Effects in Sport: Evidence from Italian Soccer”, Journal of Sports Economics, Vol. 4 No.1, February 2003 35-55. [Course packet] Meeting #21: Meeting #22: (Optional: Last day to submit Final Paper draft for comment) Meeting #23: Student-Led Discussions – Materials TBA. 11