front cover of Identification for Prediction and Decision
Identification for Prediction and Decision
Charles F. Manski
Harvard University Press, 2008

This book is a full-scale exposition of Charles Manski's new methodology for analyzing empirical questions in the social sciences. He recommends that researchers first ask what can be learned from data alone, and then ask what can be learned when data are combined with credible weak assumptions. Inferences predicated on weak assumptions, he argues, can achieve wide consensus, while ones that require strong assumptions almost inevitably are subject to sharp disagreements.

Building on the foundation laid in the author's Identification Problems in the Social Sciences (Harvard, 1995), the book's fifteen chapters are organized in three parts. Part I studies prediction with missing or otherwise incomplete data. Part II concerns the analysis of treatment response, which aims to predict outcomes when alternative treatment rules are applied to a population. Part III studies prediction of choice behavior.

Each chapter juxtaposes developments of methodology with empirical or numerical illustrations. The book employs a simple notation and mathematical apparatus, using only basic elements of probability theory.

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front cover of Imagined Futures
Imagined Futures
Fictional Expectations and Capitalist Dynamics
Jens Beckert
Harvard University Press, 2016

In a capitalist system, consumers, investors, and corporations orient their activities toward a future that contains opportunities and risks. How actors assess uncertainty is a problem that economists have tried to solve through general equilibrium and rational expectations theory. Powerful as these analytical tools are, they underestimate the future’s unknowability by assuming that markets, in the aggregate, correctly forecast what is to come.

Jens Beckert adds a new chapter to the theory of capitalism by demonstrating how fictional expectations drive modern economies—or throw them into crisis when the imagined futures fail to materialize. Collectively held images of how the future will unfold are critical because they free economic actors from paralyzing doubt, enabling them to commit resources and coordinate decisions even if those expectations prove inaccurate. Beckert distinguishes fictional expectations from performativity theory, which holds that predictions tend to become self-fulfilling prophecies. Economic forecasts are important not because they produce the futures they envision but because they create the expectations that generate economic activity in the first place. Actors pursue money, investments, innovations, and consumption only if they believe the objects obtained through market exchanges will retain value. We accept money because we believe in its future purchasing power. We accept the risk of capital investments and innovation because we expect profit. And we purchase consumer goods based on dreams of satisfaction.

As Imagined Futures shows, those who ignore the role of real uncertainty and fictional expectations in market dynamics misunderstand the nature of capitalism.

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front cover of Improving Decisionmaking in a Turbulent World
Improving Decisionmaking in a Turbulent World
Strategic Rethink
Charles P. Ries
RAND Corporation, 2016
Every president needs a decisionmaking system that harnesses the full capabilities and accumulated wisdom of the U.S. government and the nation’s many stakeholders. This Perspective analyzes a range of management challenges in the national security system and presents recommendations for strengthening U.S. decisionmaking and oversight of policy implementation.
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Indecision in American Legislatures
Jeffrey J. Harden and Justin H. Kirkland
University of Michigan Press, 2018

Lawmaking provides many opportunities for proposals to be altered, amended, tabled, or stopped completely. The ideal legislator should assess evidence, update his or her beliefs with new information, and sometimes be willing to change course. In practice, however, lawmakers face criticism from the media, the public, and their colleagues for “flip-flopping.” Legislators may also only appear to change positions in some cases as a means of voting strategically.

This book presents a systematic examination of legislative indecision in American politics. This might occur via “waffling”—where a legislator cosponsors a bill, then votes against it at roll call. Or it might occur when a legislator votes one way on a bill, then switches her vote to the other side. In Indecision in American Legislatures, Jeffrey J. Harden and Justin H. Kirkland develop a theoretical framework to explain indecision itself, as well as the public’s attitudes toward indecision. They test their expectations with data sources from American state legislatures, the U.S. Congress, and survey questions administered to American citizens. Understanding legislative indecision from both the legislator and citizen perspectives is important for discussions about the quality of representation in American politics.

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