Are terrorists statistically significant?

tsa_securityHere’s another discussion relevant to the earlier post that DO SOMETHING is not a helpful government response to the current terrorismscare:

[T]he key point about identifying al-Qaeda operatives is that there are extremely few al-Qaeda operatives so (by Bayes’ theorem) any method you employ of identifying al-Qaeda operatives is going to mostly reveal false positives.

(From Matthew Yglesias via Tyler Cowen ONCE AGAIN, I think I’m now Tyler’s full-time RA).

How does this relate this to our usual statistical analysis? Proving someone is a terrorist is analogous to proving a nonzero effect that confirms an economic theory. We allow a rate of false positives of 5 percent (“statistical significance at the 5 percent level”) for showing that, say, good institutions have a positive effect on development. The false positives do not automatically swamp the true positives, because the true effects of  one thing on something else are not as rare as terrorists.

To have a low rate of false positives, we have to accept a high rate of false negatives. But we don’t care about false negatives. You failed to show an effect of your favorite magic ingredient X on development? Too bad, the burden of proof is on YOU if you want to add your ridiculous theory to the existing development knowledge.

Contrast airport security, where we DO care about false negatives (i.e. failing to detect a terrorist). To reduce false negatives even more (as everybody is demanding ), we would have to accept MORE false positives. This would swamp even more the rare genuine terrorists.

Yglesias used a hypothetical rate of false positives of 0.1 percent in his discussion of screening 15 million British Moslems. Of course, TSA makes it much worse by screening each and every of the 800 million airline passengers annually in the US -- including my 80 year old mother whose only suspicious behavior is hiding her handbag in fear of NYC purse snatchers. A false positive rate of 0.1 percent times 800 million means that false positives would be 800,000 people.

Have you seen 800,000 terrorist suspects milling around at airport security? No, I haven’t either. So the true TSA false positive rate must be even lower, which must mean the false negative rate must be a lot higher than the TSA would like to admit (as confirmed by audits). Intensified universal screening cannot possibly work: QED. (For useful alternatives, consult the people in the know.)

As Shakespeare once said about TSA:

It is a tale told by an idiot, full of sound and fury signifying nothing.

OBLIGATORY AID PARALLEL TO TODAY’S APPARENTLY UNRELATED NEWSWORTHY TOPIC: the Do Something approach in aid has not been a great success either. Although it is still popular in aid and social activism, as illustrated by the nearly 300,000 followers on Twitter of @DoSomething, who wrote the following “Tweet”:

Its really easy to be a critic. Its really hard to be a do-er who actually makes stuff happen.

Stuff happen like click on a non-binding poll on their web site whether unnamed state legislators who don’t check web sites should pass laws against texting while driving. That may be easier than being a critic.

UPDATE: announcement today that TSA will piss off 14 mostly Muslim countries by subjecting fliers from those countries to the US to universal invasive screening. Thank goodness the terrorists are so dumb they would never think of flying from ANOTHER country besides these 14!

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Forensic analyst busts Victoria’s Secret

Forensic analysts look for abnormal data patterns that allow them to catch bad guys doing bad things, with many economics applications. One of their recent non-economics triumphs has been to catch Victoria’s Secret’s blatant photo- shopping of their ads, notably the example below (HT to Tyler Cowen as usual). doctored-victorias-secret-ad The most obvious giveaway  is that they snatched the young lady’s handbag out of her right hand, leaving her holding – nothing. This made the forensic photo expert suspicious and he also caught Victoria’s Secret in more subtle photo shopping. Most predictably, they increased the young lady’s bust size. (This is documented in way more expert detail than you really want.) Not only does Victoria’s Secret objectify women to be like their gorgeous models, but even the models have to be objectified to be their concept of a fantasy woman.

I’m not a marketing expert, but I'm not sure “wear our stuff and you might look good enough to be photo-shopped” is the best ad campaign.

To Victoria’s Secret’s credit, after they got caught, they undid some of the photo-shopping and reposted the picture on their web site. They gave the young lady back her handbag. However, they did not undo the fake bust.

I realize that this is all pretty tame compared with the expectations raised by the headline. But Aid Watch NEVER exploits supermodels! Even here, I refrained from giving a far more sexy, hyper-objectified female example of photo-shopping.

Forensic economics does similar things with patterns in data rather than photos. Ray Fisman at Columbia famously caught some Indonesian companies as corruptly linked to Suharto, because their stock prices would fall whenever Suharto got sick. Ray has made a specialty of this – he also caught some countries smuggling art and antiques, using discrepancies between their exports of these items to country X and the country X data on imports of these items from these same countries.

So here’s the challenge – can we use forensic economics to keep tabs on aid agencies? Oops, I forgot, there's a lot fewer people who care about aid than Victoria's Secret models. Can both of you please forward your suggestions on forensic aid evaluation?

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Peter Singer and I on Tough Love for Our NGOs at NYT (the 6 minute video excerpt)

I am so grateful and humbled that my message on the accountability of aid has finally reached this extremely high profile -- wait, I just realized, there is NO audience, it's the holidays. For those of you who didn't have enough heavily spiked eggnog to listen to the whole 46 minute version, here is the New York Times' 6-minute excerpt of the conversation, emphasizing microcredit, evaluation, overhead costs, and the limits of generic "answers."

The audience gave us rave reviews (both of you) :

There is a superb Bloggingheads debate between Peter Singer (author of The Life You Can Save) and Bill Easterly (author of I Hate Puppies and Christmas The White Man’s Burden). (Chris Blattman, what a card)

Peter Singer and Bill Easterly on Bloggingheads.TV (Tyler Cowen, Marginal Revolution, "assorted link". OK this is not really a review but at least we made it into one of the hundreds of links Tyler chooses.)

I sense a juggernaut slowly (VERY slowly) building up toward that day when we demand results of our NGOs, of our official aid agencies, of our favorite celebrities, until we will all be able to join hands and say "Accountable at Last! Accountable at Last! Accountable at Last!"

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