Peter Leeson

Last updated
Peter Leeson
Peter T. Leeson.jpg
Born (1979-07-29) July 29, 1979 (age 44)
Nationality American
SpouseAnia Leeson
Academic career
Institution University of Chicago
(2009–2010)
George Mason University
(2007–present)
West Virginia University
(2005–2007)
Field Economics
Alma mater Hillsdale College
George Mason University
Influences Gary Becker, Ludwig von Mises, George Stigler, Gordon Tullock
Contributions The Invisible Hook
Information at IDEAS / RePEc

Peter T. Leeson (born July 29, 1979) is an American economist and the Duncan Black Professor of Economics and Law at George Mason University. [1] In 2012 Big Think listed him among "Eight of the World's Top Young Economists". [2] He is a Fellow of the Royal Society of Arts. [3]

Contents

Leeson is known for extending rational choice theory into unusual domains, [4] [5] [6] such as to the study of bizarre rituals and superstitions, and to the behavior of Caribbean pirates. [7] [8] [9] As Freakonomics coauthor Steven Levitt put it, "the amazing thing about Pete Leeson is that he takes these crazy topics and through a brilliant mix of meticulous historical research, data gathering, and creative economic thinking he shows that these seemingly nonsensical practices actually make a whole lot of sense... I can't think of another economist whose work has so consistently blown my mind." [10] According to the American Institute for Economic Research's Art Carden, "to the extent that the economics profession has an heir to Gary Becker in the sense of pushing economic analysis as far as we think it will go and then discovering it will go a little farther, it's Leeson." [11]

In 2022 Leeson received the Adam Smith Award, previously given to Nobel Laureates Douglass North, James M. Buchanan, Vernon L. Smith, and Elinor Ostrom. [12]

Formerly, he held faculty positions at West Virginia University and the University of Chicago.

Life and education

Leeson began writing about economics as a teenager:

In 1997, Mackinac Center for Public Policy President Lawrence W. Reed read an articulate letter to the editor...that scolded a previous writer for poor economic analysis of a public policy issue. Reed contacted the writer, assuming that he was a professor of some sort. In fact, the author was a 17-year-old Dow High School student, Peter Leeson. [13]

As an 18-year-old, Leeson was invited by an economics professor at Northwood University to lecture in his course. [13]

Leeson earned a B.A. in economics at Hillsdale College in 2001. He received his Ph.D. in economics at George Mason University in 2005 under the direction of Peter Boettke. In 2003–2004, he was a visiting fellow in political economy and government at Harvard University. In 2005, he was the F.A. Hayek Fellow at the London School of Economics. [14]

Leeson proposed marriage to his now-wife, Ania, in the preface of his book The Invisible Hook: The Hidden Economics of Pirates. [15] Ania also appears as one of the characters in his book WTF?! An Economic Tour of the Weird. [16] Leeson has a tattoo of a supply and demand curve on his right biceps [17] and is an avid cigar smoker. [18] [19] [20] He illustrated his book WTF?! [19]

Work

Economics of piracy

Leeson's Invisible Hook argues that Caribbean pirates developed an early form of constitutional democracy and engaged in behaviors such as flying the Jolly Roger because doing so maximized their profit. [21]

In the wake of the Maersk Alabama hijacking, his work on piracy drew substantial media attention. [22] [23] [24] [25] In an article published by National Public Radio, he said that "early 18th century pirates, men like Blackbeard, "Black Bart" Roberts, and "Calico" Jack Rackam, were not only thieves. They were also early experimenters with some of the modern world's most cherished values, such as liberty, democracy, and equality." [26]

Although Leeson is careful to note that he does not praise the criminal actions of pirates, he argues that their self-organization is a useful illustration of how even criminal conduct is based on rational self-interest. In an interview published by The New York Times , Leeson summarized his thesis:

The idea of the invisible hook is that pirates, though they're criminals, are still driven by their self-interest. So they were driven to build systems of government and social structures that allowed them to better pursue their criminal ends.... The reason that the criminality is driving these structures is because they can't rely on the state to provide those structures for them. So pirates, more than anyone else, needed to figure out some system of law and order to make it possible for them to remain together long enough to be successful at stealing. [25]

CGP Grey's two-video animated YouTube adaptation of Leeson's Invisible Hook has been viewed more than 10 million times. [27] [28]

Economics of bizarre rituals and superstitions

Leeson's book WTF?! argues that practices which seem senseless, such as trial by ordeal, trial by combat, and oracular divination, are in fact clever solutions devised by people to overcome social problems. [29] A recurrent theme in his work is that "people—all of them, regardless of time or place, religion or culture, wealth, poverty, or anything else—are rational." [30] Similarly, he maintains that all institutions, including those "that seem obviously inefficient—and, indeed, sometimes downright absurd—are in fact, on closer inspection, efficient and not so absurd after all." [31]

Steven Levitt has described Leeson's book as " Freakonomics on steroids" [32] [33] and described Leeson as "one of the most creative young economists around." [34] Tim Harford called Leeson's WTF?! "one of the most original books I've ever read." [35]

Economics of anarchy

Leeson has written extensively on what he describes as "the economics of anarchy" and has suggested that "self-governance works better than you think." [36] Avinash Dixit described Leeson's book Anarchy Unbound: Why Self-Governance Works Better Than You Think as "an eye-opener," and Robert Ellickson described it as "masterly." [37] According to Leeson:

[T]he case for anarchy derives its strength from empirical evidence, not theory.... Despite... significant arenas of anarchy we do not observe perpetual world war in the absence of global government, shriveling international commerce in the absence of supranational commercial law, or even deteriorating standards of living in Somalia. On the contrary, peace overwhelmingly prevails between the world's countries, international trade is flourishing, and Somali development has improved under statelessness. [36]

The Atlas Economic Research Foundation's Fund for the Study of Spontaneous Orders awarded Leeson its Hayek Prize in 2006, noting of his scholarship that:

Leeson has concentrated on the study of the problem of order where no formal law exists, showing how in such diverse situations as trade among strangers, banditry in colonial West Central Africa and modern Somalia, and life in pirate societies over the ages often informal rules emerge that allow order to be preserved without heavy-handed government control. [38]

Views

Leeson stated in a column regarding Ronald Reagan and foreign policy, "Reagan's foreign policy was predicated on the use of military intervention to achieve the political and economic outcomes his administration was after in foreign countries. I am advocating precisely the opposite—that no such intervention would be desirable." [39]

Books

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References

  1. ↑ "Peter T. Leeson." George Mason University Department of Economics
  2. ↑ Wyne, Ali. "Empirics and Psychology: Eight of the World's Top Young Economists Discuss Where Their Field is Going." Big Think. July 25, 2012.
  3. ↑ Department of Economics, George Mason University. "Peter Leeson Elected as a Fellow of the Royal Society of Arts."
  4. ↑ Dubner, Stephen J. "What Do Broken-Hearted Knitters, Urinating Goalkeepers, and the C.I.A. Have in Common?" Freakonomics.com. January 12, 2022.
  5. ↑ Keenan, Michael. "Interview with Peter Leeson, Author of The Invisible Hook and Anarchy Unbound". Seasteading.org. April 24, 2014.
  6. ↑ Koyama, Mark. "Peter T. Leeson, WTF?!: An Economic Tour of the Weird." Review of Austrian Economics. 2019, Vol. 32, pp. 81-84.
  7. ↑ Rothman, Lily. "Game of Thrones and the Case for Trial by Combat." Time. March 12, 2014.
  8. ↑ Worstall, Tim. "Wifeselling: Is Selling Your Wife Slavery?" Forbes. June 21, 2011.
  9. ↑ Levitt, Steven. "The Economics of Gypsies." Freakonomics.com. July 27, 2010.
  10. ↑ Levitt, Steven D. "Peter Leeson on Why Trial-by-Fire Wasn't Barbaric and Why Pirates Were Democratic." Freakonomics.com. June 11, 2021.
  11. ↑ Carden, Art. "Peter T. Leeson: A Birthday Appreciation." AIER.org. July 29, 2020.
  12. ↑ "Leeson honored with the 2022 Adam Smith Award by The Association of Private Enterprise Education." April 20, 2022.
  13. 1 2 LaFaive, Michael. "Peter the Great." Mackinac Center for Public Policy. October 10, 2005.
  14. ↑ Leeson, Peter. Curriculum vitae. peterleeson.com
  15. ↑ Pellien, Jessica. "Peter Leeson Proposes an Economic Love Story." Princeton University Press. March 30, 2009. For further information, see this interview.
  16. ↑ Leeson, Peter T. WTF?! An Economic Tour of the Weird Stanford University Press. 2017. p. 11.
  17. ↑ Crain, Caleb. "Bootylicious: What do the Pirates of Yore Tell us About Their Modern Counterparts." The New Yorker. September 7, 2009.
  18. ↑ Braun, Bob. "Pirates Provide Opportunity for Quirky Study of Economics." The Star-Ledger June 29, 2009.
  19. 1 2 Leeson, Peter T. WTF?! An Economic Tour of the Weird Stanford University Press. 2017. p. 191
  20. ↑ Leeson, Peter T. "An Austrian Approach to Law and Economics, with Special Reference to Superstition." Review of Austrian Economics 25(3): 185–198.
  21. ↑ Shermer, Michael. "Pirate Economics? Captain Hook Meets Adam Smith." Scientific American October 1, 2009.
  22. ↑ Trumbull, Mark and Mark Sappenfield. "Captain freed from pirates in daring rescue." Christian Science Monitor. April 12, 2009.
  23. ↑ Abraham, Marc. "How pirates of old really did the business." The Guardian. April 6, 2009.
  24. ↑ Caldwell, Christopher. "No honour among pirates." Financial Times. April 24, 2009.
  25. 1 2 Hagen, Ryan. "Pirate Economics 101: A Q&A With Invisible Hook Author Peter Leeson." Freakonomics Blog. New York Times. April 20, 2009.
  26. ↑ Leeson, Peter. "In Defense of Pirates (The Old Time Ones)." National Public Radio. April 10, 2009.
  27. ↑ CGP Grey. "How to be a Pirate: Captain Edition." cgpgrey.com. May 30, 2020.
  28. ↑ CGP Grey. "How to be a Pirate: Quartermaster Edition." cgpgrey.com. June 2, 2020.
  29. ↑ Leeson, Peter T. WTF?! An Economic Tour of the Weird Stanford University Press. 2017.
  30. ↑ Leeson, Peter T. WTF?! An Economic Tour of the Weird Stanford University Press. 2017. p. XII
  31. ↑ Leeson, Peter T. "Why did Pirates Choose Democracy? And Some Thoughts on the Efficient Institutions View." Coordinationproblem.org. April 20, 2013.
  32. ↑ Cowen, Tyler. Marginalrevolution.com. April 30, 2017
  33. ↑ Stanford University Press
  34. ↑ Levitt, Steven. "Freakonomics Meets Pirates of the Caribbean." Freakonomics.com. December 29, 2009.
  35. ↑ Stanford University Press
  36. 1 2 Leeson, Peter. "Anarchy Unbound; Or, Why Self-Governance Works Better Than You Think." Cato Unbound. Cato Institute. August 6, 2007.
  37. ↑ Cambridge University Press
  38. ↑ Fund for the Study of Spontaneous Orders. Atlas Economic Research Foundation. atlasnetwork.org. "Fund for the Study of Spontaneous Orders | the Atlas Network". Archived from the original on 2009-07-09. Retrieved 2009-07-05.
  39. ↑ "Clarifying Matters". Cato Unbound. August 20, 2007. Retrieved August 2, 2019.
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