Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca

. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Monday, January 24, 2005

Substitution Effects and Racial Profiling

Regardless of whether you think racial profiling is a form of evil discrimination or a necessary part of security, be sure to read Posner's latest entry on this topic. His main point is that racial profiling will cause substitution effects, which he expects to be quite large: if one race is targeted, then criminals and terrorists of other races will emerge as successful groups. If this empirical assumption is correct, then racial profiling will have little effect on crime rates or national security. My own priors are that the substitution effects are smaller than he assumes.
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