41. Dr. Bapu Jena on Why Freakonomics Is the Best Medicine

26 Sep 2026 · 40 min · 19 chapters

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In short

How to answer causal questions in medicine without relying only on randomized trials—using “natural/accidental experiments” from observational data—and applying this approach to COVID transmission and vaccine trial ethics.

Guest backgrounds

Dr. Bapu Jena is a medical doctor and a PhD economist (University of Chicago). He’s known for bringing Freakonomics-style causal inference into mainstream medicine; he also has a new podcast, Freakonomics MD.

Key claims

Randomized trials are the gold standard, but observational clinical epidemiology can mislead due to non-comparable groups. Natural experiments can mimic randomized trials by finding real-world “as-if random” treatment differences and replicating “Table 1” balance. Medical publishing incentives reduce replication. For COVID, birthday-based insurance-claims data can proxy for social gatherings. Human challenge vaccine trials should be reconsidered using willingness-to-pay tradeoffs.

Notable examples

cardiology conference dates—patients hospitalized during meetings had better 1-year survival, possibly due to less intensive procedures; COVID birthdays—households with a birthday had ~30% higher COVID diagnoses, especially for kids.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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Bapu Jena's Background

0:45 to 2:38

Discussion about Dr. Jena's unique combination of medical and economic expertise.

“See discovery.com slash five for details.”

Standard Medical Thinking

2:38 to 3:58

Explanation of traditional medical standards and the importance of randomized trials.

“So partly why you think differently is that you are not just a doctor, but you also got a PhD in Economics from the University of Chicago.”

Epidemiology vs. Randomized Trials

3:58 to 6:36

Contrast between randomized trials and epidemiological studies in understanding drug effectiveness.

“And randomized experiments are the gold standard of causality because you're able to hold everything else constant.”

Natural Experiments in Research

6:36 to 8:19

Discussion on using natural experiments to infer causality when randomized trials are impractical.

“So what you're saying is in clinical epidemiology, what you're looking at are correlations between did you take the good drug and did you die?”

Challenges in Causal Inference

8:19 to 9:47

Exploration of the skepticism in medical research regarding causation derived from observational data.

“I actually prefer the name accidental experiment because I think it's a better description of what happens.”

Finding Causation in Natural Experiments

9:47 to 11:58

Insights on how to establish causation through natural experiments and their replicability.

“And I think that's a challenge that our field has to overcome.”

Unexpected Findings in Medical Research

11:58 to 14:00

Discussion on the implications of controversial findings in medical research and the replication crisis.

“And I start by saying, well, do you have a reason for why they would be different?”

Replication Crisis in Medicine and Economics

14:00 to 22:00

Explore the challenges and controversies surrounding replication in research findings.

“And so that led me to hypothesize that maybe what's going on is during the dates of these meetings, it's just that less intensive care is performed.”

Natural Experiments in Medicine

22:00 to 23:20

Learn about the concept of natural experiments and their significance in medical research.

“After this break, they'll return to talk about some of Bapu's research on COVID.”

COVID-19 Research and Social Gatherings

23:20 to 28:01

Discover a study on how small social gatherings impact the spread of COVID-19.

“Visit the Wayfair store today at Edens Plaza and Wilmette.”
Show all 19 chapters

Analyzing COVID-19 Transmission through Birthdays

28:01 to 30:03

Learn how birthday celebrations can influence COVID-19 transmission rates.

“I have a great relationship with my in-laws.”

The Importance of Data in Understanding COVID

30:03 to 31:10

Explore how detailed data could have improved our understanding of COVID transmission.

“COVID has obviously been one of the most important events of our lifetimes.”

Ethics and Economics of Vaccine Trials

31:10 to 34:08

Discuss the ethical implications of human challenge trials for COVID vaccines.

“And it relates to medical ethics because I have found that to be an area where economic thinking and medical thinking lead to very different conclusions.”

Ethics and Economics of Vaccine Trials

34:52 to 35:46

Discuss the ethical implications of human challenge trials for COVID vaccines.

“Are you taking the right risks with your portfolio?”

The Case for Human Challenge Trials

35:46 to 39:21

Debate the merits and ethics of conducting human challenge trials for COVID.

“It seems to me totally obvious that with COVID, we should be doing these challenge trials.”

Patient Empowerment in Medical Decisions

39:21 to 42:01

Understand the importance of patients questioning medical decisions.

“But, you know, I think people just need to hear more about this stuff.”

The Intersection of Economics and Medicine

42:01 to 43:31

Explore how economics can creatively impact health discussions and patient empowerment.

“They tested my wife again for toxoplasmosis a few days later, and she came back negative.”

Behind the Scenes of Freakonomics

43:31 to 43:52

Learn about the production and creative vision behind the Freakonomics podcast.

“Let me just say, it didn't turn out exactly as we hoped it would.”

Behind the Scenes of Freakonomics

44:45 to 45:12

Learn about the production and creative vision behind the Freakonomics podcast.

“Are you taking the right risks with your portfolio?”
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Transcript

Automatic transcript. May contain errors.

0:00How's the new place? Get your Wi-Fi figured out? I got T-Mobile 5G home internet and I'm loving it. It's the fastest 5G home internet. My old provider was so slow. Mine is slow. And only 35 bucks a month. Do I need to try this? Try it for 15 days. Love it or get your money back. I love it already. There are over 250 reasons to join T-Mobile. Find yours and check availability at T-Mobile.com slash home internet. That's this according to Oculus V test intelligence data. Second half of 2025. All rates reserved for D money back guarantee within 30 days of cancellation. With the Discover Cashback card, it's payback time when you earn cash back on everyday purchases.

0:36Activate and earn 5 % cash back at different categories each quarter on up to$1 ,500 in purchases. That's 5 % cash back at different places each quarter, like grocery stores, on gas, and at restaurants. It pays to Discover. Terms apply. See discovery.com slash five for details.

1:02My guest today, Bapu Jenna, is a medical doctor. He's a PhD economist, and he's unbelievably creative. What happens when you mix those three things together? You get someone who's finding ways to answer important questions that no one else can. And the good news is, if you like what you hear today, He's got a brand new podcast on the Freakonomics radio network called Freakonomics MD.

1:27Welcome to People I Mostly Admire with Steve Levitt. I first met Bapu when he took one of my classes as a second-year PhD student at the University of Chicago. It was obvious to me that Bapu had immense talent, one of the most special students I've taught. But I also thought he must be a little bit crazy. Who does an economics PhD and an MD simultaneously? But I've always liked people who are a little crazy, so I did what I could to help him out while he was a student, and I've kept an eye on his progress since then. And wow, even I've been amazed at what he's done, more or less single-handedly bringing Freakonomic-style approaches into the mainstream of medicine.

2:13A couple months ago, I read a story in the New York Times researchers had used the timing of birthdays to learn about the transmission of COVID. And I thought, wow, what a brilliant idea. And then I read a few paragraphs further, and there was a quote from you, Bapu. And I said, of course, it had to be Bapu. No one else in medicine thinks this way. So that's a pretty high compliment. I appreciate it. Thank you. So partly why you think differently is that you are not just a doctor, but you also got a PhD in Economics from the University of Chicago. And I think back in the day, you even took one of my classes, didn't you?

2:50Yeah. You may not remember, but you were on my doctoral committee. It's a long time ago. I was on your committee, but it was fake. I didn't really advise you. They just needed a third person to sign. I would love to take credit for some of your success, but you and I will both agree. I probably didn't help you very much when you were a grad student. It's a thought that counts. So before we get into all the interesting stuff about you and how you think about the world, I think it's really important that we describe the standard way of thinking in medicine. And in medicine, which is true really in all the scientific disciplines, randomized experiments are seen as the gold standard, right?

3:26Yeah, that's exactly right. Medicine is one of these areas where you start with this biological hypothesis about what drug might work and how it might work. But ultimately, when you move from the bench to the bedside, there's so many things that can go wrong. These are high-stake decisions, and what you think might work may not actually end up working. And that's why we do these randomized trials to give doctors a good sense of what works and what doesn't work. Okay, and that makes perfect sense because in medicine, what we care about is causality. And we want to know, if you take this drug, will it make you feel better?

4:01And randomized experiments are the gold standard of causality because you're able to hold everything else constant. Very one thing, do I give someone a placebo or a drug? and then see whether the people who got the drug do better. But randomized trials aren't the only research strategy used in medicine. There's also this thing called epidemiology. Yeah. Why don't we have randomized trials for every single decision we make? They're costly to do. It takes time to recruit patients. Not all patients want to participate in an experimental drug. It sometimes takes years to get this sort of information.

4:32So that's why as a field, as a discipline, medicine has had to rely on other approaches to trying to understand causal questions like, does drug A do a better job at treating disease than drug B? And so there's this field of, I would call it clinical epidemiology, because epidemiology does a lot of different things. It studies the spread of disease. But this field of clinical epidemiology is really designed around trying to use real-world, typically historical or observational data to understand whether one treatment works better than another. And in that data, you have information on sometimes tens of thousands or millions of patients who receive one drug versus another.

5:13And then a doctor or an epidemiologist, or maybe both, will work with that data to try to figure out whether that drug is better than some other drug. Okay, just to be clear, what differs between this and a randomized experiment is that nobody's randomized who's getting the drug. Some people are getting one drug, some people are getting another drug, and that's choices that they've made or the doctors have made, not a randomization. Yeah. Like let's suppose you have a population of patients with cancer and you want to know whether or not a brand new, fancy, expensive oncology drug results in improved survival.

5:46One way you could do that is you could do a randomized trial where you randomize some patients to receiving that drug and other patients to receiving either placebo or standard of care and then measure the outcomes, in this case survival. The other way you could do that is look at historical data on patients who received that drug and compare their outcomes to patients who didn't receive that drug. Now, what happens if you find that patients who receive that fancy new drug have worse survival? They're more likely to be dead in the next year. If you look at that data, you might conclude that the drug actually harms patients.

6:19But what if the patients who are offered that drug are the ones who have worse cancer, who have passed through all other therapies up to that point and are really left with one option, which is this new experimental drug, in that case, you would reach the wrong conclusion. It might be the case that the drug actually works, but because you're not comparing like to like, you're comparing patients who are not similar in the treatment arm, which is this drug, and the control arm, which is a different drug, you're going to come to the wrong conclusion. Okay, exactly. So what you're saying is in clinical epidemiology, what you're looking at are correlations between did you take the good drug and did you die?

6:57But if all other things aren't held constant, like they are in a randomized experiment, then you can come to the wrong conclusions. And of course, epidemiologists are not stupid and they understand this and they try to do the best they can to control for other factors, but they're also limited by what data they have available or what data they think to collect. But you're always left, at least I'm always left, a little bit uncertain, maybe a little bit, I'm often very skeptical at the end of the day when as a consumer of the newspaper, I read about these epidemiological studies and I'm told to do one thing or another.

7:35Wait, are you telling me that eating peanuts at age six doesn't cause dementia at age 66? You don't believe that? I gotta retract my new paper then, okay. Okay, economics and medicine have something really important in common, namely that both disciplines care about the answers to many questions where it's hard to do randomized experiments. So I'm not allowed to induce massive unemployment in some cities for my research to see what the effect of unemployment is. Or even in my own studies, I'm really interested in the effect of prisons on crime. And there's no way in the world I'm ever going to convince a random set of states to let 20 % of the prisoners out in that state.

8:14And maybe another state will lock up another 20 % of prisoners. Just not going to happen. Totally impossible. And so what economists have put an enormous amount of effort and thought into is developing models that use this non-experimental data, everyday data, but that might plausibly have a causal interpretation because we look for special settings that mimic a true randomization. And we call it a natural experiment. I actually prefer the name accidental experiment because I think it's a better description of what happens. And that's really what you do, but you do it in medicine. You know, correlation is not the same thing as causation.

8:50That statement, it's endemic in the way medical students are taught. And that's good and bad. It's good because I think it introduces a healthy dose of skepticism in anybody who's training to be a doctor about how to interpret a new study that shows there's a link between red wine and whatever outcome. Now, the problem with that, though, is that it goes so far as to make doctors think, or at least the doctors I know think, that really the only way that you can get at questions of causation is a randomized trial. Exactly. And it goes so far as if you're writing an article for a medical journal in which you're using a natural experiment, or to borrow your words, an accidental experiment, any language that reflects causation, this study shows that X caused Y, or the effect of X on Y was this.

9:37Any language like that is typically removed from the manuscript because there's this belief that you can't use observational data to reach causal conclusions. And I think that's a challenge that our field has to overcome. Let me just try to explain how I explain natural experiments to people. A randomized experiment, a real randomized trial, has two key features. The first one is that the treatment group gets treated different than the control group. Okay, we all know that. The second key feature is that except for the treatment, we would have expected the treatment group and the control group to have the same outcomes on average.

10:13Okay, so you start from that and you say, so a good natural experiment just tries to mimic those exact features. We go out in the real world and we try to find settings where otherwise identical people, essentially by chance, get treated very differently. So if we can do that, we've more or less mimicked a randomized trial without actually running a formal experiment. You've had a lot more success convincing your colleagues that natural experiments have merit. So what words do you use when you try to describe what a natural experiment is? Steve, I don't know that success is the word I'd use. You haven't seen all the studies that I've tried to get published.

10:51You only see the successful ones. That's a different bias. You know, the way I describe it, it's very similar. But when you see a paper in a clinical journal that presents the results of a randomized trial, most often the first table, the first exhibit in that study, shows the characteristics of patients who received a treatment and a control. And you can look at that table and you can see that the characteristics almost always are nearly identical between the two groups. And that gives doctors, I think, a lot of faith that these two groups are balanced and we expect the outcomes in those two groups to be otherwise similar were it not for the fact that one group is going to receive a treatment and another group is going to receive a control.

11:34And therefore, any difference that we end up observing between those two groups in the outcomes is attributable to the receipt of that treatment as opposed to underlying differences and characteristics between those two groups. What I've tried to do in most of the natural experiment studies that I published in medical journals is try to, you know, just essentially replicate that table one. So if I'm looking at what happens to patients who are hospitalized during the dates of a national cardiology conference when all the cardiologists are out of town, and I want to know the answer to whether or not care is different and whether that difference in care leads to differences in outcomes, let's say mortality at one year later, the first question someone should rightly ask is, well, Bapu, how do you know that the patients who go to the hospital when cardiologists are in town just aren't different from the patients who go to the hospital when cardiologists are in town?

12:27And I start by saying, well, do you have a reason for why they would be different? Do people choose to have heart attacks? You've got to fight that criticism. And so the way I fight is, I just show in a table one, look, the patients who are hospitalized with a heart attack during the dates of the American Heart Association meeting are identical to patients who are hospitalized with heart attacks during the surrounding weeks of the year. And so what happens to those folks who do show up at the cardiologist's office only to find out the cardiologists are all at the national convention? What do you think, Abbott?

12:59They actually do better. That was a shocking thing of that study. I remember being in the cardiac intensive care unit around the time of one of these meetings, and the composition of senior doctors was different. And I just thought to myself, I wonder what happens when patients get hospitalized with these acute medical conditions when these meetings are happening. I thought they would do worse because either staffing was lower or the most experienced doctors would be away at these meetings. And what we found was the opposite. We actually found that they did better. And if we're interested in making people's lives better, helping them live longer, what the hell is happening that's different in the hospital during those two periods that's generating an improvement in survival that is larger than statins and aspirin and beta blockers and everything else that cardiologists do.

13:46We know that's probably a causal effect of something that's happening during that meeting date compared to other dates. What we don't know and what a randomized trial can't always tell us is what's the mechanism of that effect. And one thing that we found was that rates of a particular intensive procedure were lower. And so that led me to hypothesize that maybe what's going on is during the dates of these meetings, it's just that less intensive care is performed. And on the margin, the people who would have gotten that more intensive care aren't getting it. And the risk benefit profile for them would have been such that they'd have been benefited by not getting the care.

14:21So has anybody followed up to see whether in fact it is hurting people on the margin? No, they haven't. I'm sure you've seen this problem in Economics, which is, that was a controversial study. It had this very unexpected finding. And I thought to myself, wow, let me replicate it because there'd be a lot of interest in showing that this finding could be replicated. We had the hardest time getting that study published. And you know what the journals would say to me? They said, you already published this finding, so there's nothing novel here. And that actually has made me think a lot about this replication crisis.

14:53There's no incentive to replicate findings, at least for these types of findings. And so now I write a study and I leave it to the world to replicate it. Yeah, it's so troubling. I'm sure it's true in medicine. It's been extremely true in psychology and economics that so much of what is done cannot be replicated, randomized trial or otherwise. But the incentives within these professions and at the journals are totally screwed up when it comes to trying to sort out the truth. You think that all these journals and all these researchers should be after the truth, but really it's a very different game that's being played.

15:26a game of how do I get published and how do I get citations from my journal? Look, I don't have the answer, but I think if outsiders knew how academic publishing worked, they would be discouraged by it. Stephen, if I knew how academic publishing worked, I would be encouraged by it.

15:49I once made a foray into trying to do natural experiments in medicine, and I got burned so badly that I've never gone back. I started, I think, in 2004 when you were still a grad student, and I think it's quite possible that you might have been my inspiration. And I'll give you credit for what's going to turn out to be maybe the most unsuccessful project I ever worked on in my life. I'll take credit for the lost year of my life. Okay, so the idea is really simple. When a patient shows up at the emergency room, he or she has no idea what doctors are going to be working at that time. And if some doctors are better than others, then as a patient, I can get lucky or unlucky depending on which doctors are working.

16:33So I didn't assign any patient at random to any doctor, but a set of patients who show up are essentially random. And so I can compare outcomes across the time period, say a Tuesday, July 29th. Let's say you're working that shift. And let's say the July 22nd, Tuesday, I'm working that shift. Then if the patients who come in on July 22nd, have better outcomes than on July 29th, I'm a better doctor than you. That would be the kind of inference one would draw from these data. Okay. Does that setup make sense to you? Yeah, absolutely. Yeah. Okay. So I was working with a hospital. They had an ER. The ER was staffed by three or four doctors at a time.

17:09So I was able to get years worth of data and outcomes on the patients. And I was able to find some patterns in those data. And I was super excited. And I went to present at what's called the grand rounds, where the doctors sit around and they listen to someone who's supposed to know something, explained a new concept to him. And it was unreal. The reactions I got were confusion, anger, a consensus in the audience that I had no idea what I was talking about. So then I showed the results to my dad, who's an eminent medical researcher, probably has 500 publications. He's got lifetime achievement awards in medicine, and he's a super smart guy.

17:49And I explained my method, and he listens to the whole thing and he says, wait. So you're telling me that to figure out whether I'm a good doctor, you're gonna look at the outcomes of all the patients who come on my shift, not just the ones that I take care of. Okay, and that's exactly right. You understand, it was this moment of triumph. I had finally explained it. And my dad says, that's the dumbest thing I've ever heard of in my entire life. If I didn't treat the patient, It's not my fault if he has a bad outcome. That doesn't even make sense. So that was the last natural experiment research paper that I ever tried to do in medicine.

18:28I never got it published. So hats off to you that you've managed to rattle off a string of these papers. And I'm not sure we've really made it clear, but is it fair to say that when you started doing these natural experiments in medicine, literally were you not the only person publishing studies like that? I would say this is what I'm known for. There is a Canadian physician named Donald Reddemeier, who I would think is a pioneer in this area. He did a lot of work with Amos Tversky and Daniel Kahneman years ago on behavioral economics. But besides that, there's not a ton of people who really specialize in natural experiments.

19:02How many medical researchers are there publishing journals, would you guess? Oh. 10 ,000, 20 ,000? Yeah, probably more than that, yeah. Okay, 50 ,000. Okay, let's see. there are tens of thousands of researchers. And there are, I think by what you just said, let's be generous. Maybe there's a dozen people like you who are looking for natural experiments. If you look at economics, I would say something like a third or a fourth of the papers that are published in top journals are taking advantage of natural experiments. It sure seems to me like medicine's making a huge mistake by not focusing more on natural experiments.

19:41Yeah. So there's a ton of research that's what you might call health policy. So what's the effect of Medicaid expansion in one state on some outcome? There's much, much less work that uses natural experiments to try to answer questions that might be of clinical importance to a doctor, what therapy to provide or not provide. To your point, it's the minority of observational studies in a medical journal that use these sorts of methods. Whereas in economics, you'd be taken to the coals if you didn't have a good natural experiment. Now, I think the challenge though, and this is what I face is, it's hard to find these natural experiments.

20:16I've gotten good at it and this is the way my mind thinks nowadays and I'm sure that's the way you think about the world. But it's hard to find natural experiments for every question that you might want to answer. And the view of a lot of medicine has been, well, let's just try to answer it anyway. Take, for example, red meat. So tons of studies that look at the relationship between red meat consumption and any number of outcomes, mostly cardiovascular, hopelessly non-causal, right? There's no way you can look at those studies and think that they're causal. And I, for years, tried to think of situations where I could find a natural experiment around beef consumption and looking at whether or not, for example, when the mad cow disease outbreak in England was like 10 or 15 years ago, I looked to see whether or not there was changes in cattle output and consumption in parts of the world, and maybe that could then be used to show changes in cardiovascular outcomes.

21:06That was hopeless. I didn't find anything there. But it's hard to answer a question that people would want to know the answer to is, should I eat more or less red meat? Look, there's a million questions I'd love to answer that I haven't been able to answer with a natural experiment, either because there wasn't one out there, or more likely, I just wasn't clever enough to find it. But it sure seems to me that the medical profession is making a systematic error in the sense that by putting so much effort into randomized experiments and so much faith in this epidemiology, but missing out on the middle ground just seems like an obvious mistake to me and one that somebody, somehow the profession should change.

21:45And you're the guy to do it. I think that's a good name of a podcast. I'm the guy to do it.

21:54You're listening to People I Mostly Admire with Steve Levitt and his conversation with economist and physician Bapu Jenna. After this break, they'll return to talk about some of Bapu's research on COVID.

22:12With the Discover Cashback Card, it's payback time when you earn cash back on everyday purchases. Activate and earn 5 % cash back at different categories each quarter on up to$1 ,500 in purchases. That's 5 % cash back at different places each quarter, like grocery stores, on gas, and at restaurants. It pays to discover. Terms apply. See discover.com slash 5 for details. This episode is brought to you by Charles Schwab. Is there a right time to sell a stock? Are you taking the right risks with your portfolio? financial decisions can be tricky and often your own cognitive and emotional biases can lead you astray financial decoder an original podcast from charles schwab can help join host mark reepy as he offers practical solutions to help overcome the cognitive and emotional biases that may affect your investing decisions listen at schwab.com financial decoder hey chicagoland the wayfair store is in your neighborhood at edens plaza and wilmette finally you can feel the fabric sit on the sectionals and even open the refrigerators.

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23:40Morgan, what do we have on the table today? Steve, I want to check back in on something. In one of our episodes with Sendhil Malinaten, you said...

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23:56I'm making a promise to myself. At least for one week, inspired by Sendhil, I'm going to make play a priority.

24:09How have you been doing with this promise to yourself? Oh, God. Terrible. So I really did try, and I found it to be painful on so many different dimensions. First, I tried to play harder with my toddlers. And God, do I hate toddler play. Barbies and princesses and dragons. I mean, that is just not my thing. But I thought, why don't I play with my teenagers? and every minute that I spent trying to play with my teenagers felt like torture, not because it wasn't fun in and of itself, but because I just have so deeply built into my mindset this idea that I shouldn't be playing, I should be doing. I have gotten so allergic to wasting time that at least in a week, I couldn't overcome it.

25:00I think you're going to just have to reframe play in your mind from wasting time to actually doing something that makes you feel good. It's so true. And I tried to do that. But maybe it's one of those things where you just have to build up a little more tolerance. I also discovered something interesting about myself that I should have already known, but I just can't be okay at things. I don't mind being terrible at things really, really bad. But anything I put effort into, I need to be really good. People who know me would say, wait, what do you mean you don't play? You play golf all the time.

25:36You study trivia all the time. Isn't that play? And the funny thing is for me, those are not play. I'm deathly serious about golf and I'm deathly serious about trivia. And Sendhil's probably right. Probably what I'm doing is a terrible idea to only focus on things where I'm really going to excel. But at least that first week's experiment, F, I failed. Failed completely. Okay. Actually, in my entire existence, there's one thing I can think of that I do, and I do not very well, but I enjoy it. And that's ping pong. I play ping pong with my son, Nick, probably three times a week. And it is roughly the only thing I do where my goal isn't to get better.

26:20So maybe the lesson for me is I got to think about what it is about ping pong, where I feel liberated from that tension and try to find a little more of that. Great. Well, I can't wait for the next project you have that's been inspired by your ping pong play. If you have a question for us, please write in. The email address is pima at Freakonomics.com. That's P-I-M-A at Freakonomics.com. Steve and I both read every email that's sent.

26:56so the research of yours that i read about in the newspaper the one about covid and birthdays it became the subject of the first episode of your new podcast freeconomics md where you talk about it in some detail can you just sketch out for us that study yeah there was and has been a lot of concern about understanding how the disease spreads. We know that it spreads from person to person. That's obviously well known. But what we didn't know as well is whether or not small social gatherings, the type you might have with friends or family, with people that you trust would be a place where the virus that causes COVID-19 would be likely to spread.

27:33And so that was the question that I wanted to try to get at. But of course, like, how do you study that? You could do a randomized trial, but how in the world are you going to do a randomized trial where you either force people to hang out with their friends and family or prohibit them from hanging out with their friends and family? Never going to get that done in a million years. That's right. There's no randomized trial where you could randomize someone to spend time with their in-laws because everybody would be in, I don't know, the treatment or control group. That's not going to happen, right?

27:59I have a good relationship with my in-laws. I'll just put that out there publicly. I have a great relationship with my in-laws. Okay. So what you're saying is we have a problem. We want to know the answer to. So, Babu to the rescue, what happens next? I realized that the data that I often work with, which is called insurance claims data, anytime you go to the doctor, if you have insurance, your doctor bills your insurer for that care, and there's detailed information about the diagnoses. And the other thing the insurance company happens to know is, what is your date of birth? And so I said, all right, well, why couldn't we look at insurance data where we know information about an individual's birthday and look at whether or not COVID-19 diagnoses increase after a person's birthday.

28:42And you just follow these households out two weeks later and see if households in which a member had a birthday have a higher rate of COVID-19 diagnoses. And what we basically found is that the rate is about 30 % higher in a household that has a birthday. Yeah, the obvious mechanism is that people celebrate the birthday, they're hanging out with their friends and family, the friends and family, despite seeming trustworthy, are spreading the virus. Exactly. I think the cleverness here is that we don't see people celebrating. Yeah, you don't see any parties. You just use the birthday as an indicator of the party.

29:16Now, I presume that, at least in my family, we take kids' birthdays a lot more seriously than we take adults' birthdays. Just to be clear, I would take your birthday seriously, no matter what. But yeah, so there's an effect in both groups. But that effect is much larger if a kid has a birthday. And we couldn't look at this in the data, but I could just speculate as a parent, two things are possible. One is that parents are just more likely to get together around a kid's birthday than an adult's birthday. And the second is that if you have a kid's birthday, you might expect that the nature of interaction would be different.

29:50A lot of blowing candles, like heavy breathing, masks down, running around, touching all sorts of different surfaces, getting close. It's different than like having a dinner party with some adult friends. Yeah, that's true. This is a weird thing about COVID. COVID has obviously been one of the most important events of our lifetimes. And it's disrupted life. It's taken many lives. Are you at all surprised that this far into it, we still know so little about transmission? Yeah, this is an area where I think economics, physicians, epidemiologists could have gotten together and figured out how to answer these questions in creative ways outside of a randomized trial.

30:29I remember getting boxes from Amazon and my wife saying, just keep it in the garage for three days. And she's a doctor. And I was like, you know what? Let's keep it in there for four days because I don't know what's going on this box. If you had detailed data, identifiable data, you know where people live. You know whether or not Amazon packages are delivered to them. You could look and I'm sure construct a good natural experiment to understand whether or not that sort of packing, touching boxes that other people, many other people have touched, are associated with higher rates of COVID-19. And I'm sure there's a good, clever way to design a natural experiment to answer that question.

31:03But the data was always there. It's just hard to put together and get people behind it. Yeah, I think that's true. So that reminds me of another topic closely related that I wanna get your opinion on. And it relates to medical ethics because I have found that to be an area where economic thinking and medical thinking lead to very different conclusions. And so I'm interested in hearing what someone who's been trained in both areas thinks. So let me take a very specific case, which is COVID vaccines. So before COVID vaccines were approved for widespread use, the manufacturers ran randomized clinical trials in which volunteers were randomly assigned to either be vaccinated or not.

31:42And these needed to be big trials to get enough data, maybe 30 ,000 people. And it took a long time to enroll the people. And then we just had to wait it out to see which of those 30 ,000 people were gonna get COVID. and what the outcomes were going to be of those who got COVID. Those trials took about four months. But we could have cut that four months if we had done what's called a human challenge trial. And that's where you vaccinate people and then you expose them to COVID intentionally to see how they do. And the value of a challenge trial is that you need a much smaller number of volunteers and you don't have to wait around for people to get exposed to COVID in their everyday lives.

32:21But medical ethicists say it would be immoral because these trials expose volunteers in the study to risk. But as an economist, that drives me so crazy. So as an economist and a doctor, where do you come down on that kind of issue? I usually keep my mouth shut now. Where I come down on is three words, willingness to pay. I thought you were going to say, if you offered these volunteers in these human challenge trials, $100 ,000 to participate. Oh, a million dollars. $10 million to participate. Yeah, absolutely. You could throw up tens of millions of dollars and it would have been worth it. It would have been a bargain at that price.

32:58I would go even one step further. I mean, think about the architecture for clinical trials. Why does it take so long for clinical trials to get done? One of the reasons why is because it takes so long to recruit patients. As medicine gets better and better, guess what? It gets harder and harder to recruit patients because nobody wants to be in the treatment arm because the control arm, the standard of care, gets better and better. We've seen this in HIV. I'm sure it's present in other areas. And in that case, you think about what's the value of information that is generated by a randomized trial.

33:32It allows people across the world to be treated differently. The number of life years, the value of that life in an economic sense is staggering. People have talked at length about whether or not we should pay clinical trial participants to participate. As an economist, I would say, why not? I certainly understand the ethical challenges that are involved, but I've got to think to myself, there's got to be a way to balance those ethical challenges. It can't be this kind of binary decision where compensation in any form or a assessment of tradeoffs between the person and the public is off the table.

34:09We are making those sorts of trade-offs now as we're thinking about public mandates for vaccines. So it's not like society doesn't make those sorts of trade-offs and decisions in other aspects of our health. It just doesn't happen in clinical trials. With the Discover Cashback Card, it's payback time when you earn cash back on everyday purchases. Activate and earn 5 % cash back at different categories each quarter on up to$1 ,500 in purchases. That's 5 % cash back at different places each quarter, like grocery stores, on gas, and at restaurants. It pays to discover. Terms apply. See discover.com slash 5 for details.

34:49This episode is brought to you by Charles Schwab. Is there a right time to sell a stock? Are you taking the right risks with your portfolio? Financial decisions can be tricky, and often your own cognitive and emotional biases can lead you astray. Financial Decoder, an original podcast from Charles Schwab, can help. Join host Mark Reepy as he offers practical solutions to help overcome the cognitive and emotional biases that may affect your investing decisions. Listen at schwab.com slash financial decoder. Hey, Chicagoland, the Wayfair store is in your neighborhood at Edens Plaza and Wilmette. Finally, you can feel the fabric, sit on the sectionals, and even open the refrigerators.

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35:53It seems to me totally obvious that with COVID, we should be doing these challenge trials. And like you said, we should pay the volunteers a million dollars,$10 million. We should have lines out the door of people saying, please put me in this trial, give me the vaccine, and then expose me to COVID. I'm willing to do that. So I had Dr. Slaoui on my show. He's the doctor who led Operation Warp Speed. And I asked him, I thought he would agree with me. I said, well, why not do human challenge trials? And his answer was, well, they wouldn't be any good because you can only include people in those trials who aren't really at risk of being hurt for COVID.

36:30I said, no, I want to do it on the sickest people. I'm sure there must be 80-year-old people who maybe they got cancer, maybe they're high at risk. They want to get$10 million so their family can live well after they're gone. They'd love to be in that trial, even if there is a real chance that they'll die from it. He could not have disagreed with me more. And I was really surprised. I'm always surprised at how pervasive and how deep the ideas in medical ethics are that just collide completely with an economic way of thinking. I agree with you completely. Take it to an extreme. An individual who is in the ICU, who is ventilated, meaning a machine is breathing for them, who is so sedated that they're unlikely to be able to recover from that, like highly unlikely.

37:16You could imagine doing trials in that setting. Now, of course, there's obvious ethical issues around autonomy. That person wouldn't be able to make that decision. I certainly don't want to dismiss those, but there's got to be some gray area where that sort of thinking would make sense. It turns out we actually think like that in a lot of other ways. So for example, we are not likely to transplant organs, which are a scarce resource, into people who have very limited life expectancy after organ transplant. So clearly we're rationing a health product. We clearly think very carefully about intensive care or aggressive measures for people who are at the end of life.

37:54Why is that? Because we're making a trade-off. There is a chance that something would work, but we're balancing societal needs, costs of care with the likelihood that they would benefit. So it's not like these sort of trade-offs don't happen all over the place in clinical medicine. But for some reason in this area, they're walled off. And I think it's a limitation. I think the reason is it comes back to the idea of doing no harm and the idea of actively going out and hurting a volunteer intentionally, even though it's a volunteer and even though it's one person to save 100 ,000 lives, I think that flies in the face of what the medical profession feels like it's their job to do.

38:34Yeah. I know this historian and he told me the story about Hippocrates. So apparently before Before Hippocrates said, first, do no harm. He said, maximize social welfare. And that didn't go over so well. He had to go to his second best.

38:54So you're starting a new podcast. Now, seriously, does the world really need more podcasts? I think we had exactly the right number of podcasts the day before I started this podcast. My podcast pushed us over the edge. So what do we need your podcast for? Well, so the name actually is highly creative. It's Freakonomics, MD. Why fix something that's not broken? But, you know, I think people just need to hear more about this stuff. The people who listen to this show are hopefully not going to be mostly doctors and people who work with data, but just people who are living their lives and had a curiosity about economics and medicine.

39:33I hope that there's some element of empowerment and education that comes out of it. So, for example, in the cardiology meeting study, one of the principles that I think we showed or that I tried to show was that the intensity of care that is provided to a patient, it matters. And there could be settings where too much is done for patients. In medicine, we call that less is more. But patients, when they go to a doctor, they may not think that what they're going to be offered by a doctor may not be the right thing for them. And so I think if that episode is listened to by people and when they go talk with their cardiac surgeon about a procedure or they talk to their cardiologist, they say, you know, how likely do you think I am to benefit from this?

40:17You know, is it possible that I'm going to be better off with just medical therapy for this condition? and having a doctor be put in a situation where they have to explain the risks and benefits, I think is always a good thing. And so that's the value that's gonna be added to people who are listening to this, above and beyond the fact that it's gonna be fun and creative, and I hope to tell a lot of good jokes. Not all of them scripted, of course, but you know. I do think you're completely right about the need for people interacting with doctors to be able to challenge doctors. I'll give you an example from my own life.

40:53So my last daughter, my wife had gotten a positive value on a toxoplasmosis test while she was pregnant. It's some kind of horrible thing that you get from cat poop. It does awful things to babies potentially. So my daughter was born and the experts in the area came in to our hospital room. This is hours after my daughter was born. and they wanted to use anesthesia on her and do all these things. And I just said, well, why? And they said, we want to understand whether she has toxoplasmosis. I said, well, what are you going to do about it if she does? She said, well, then you'll know that she's probably going to be mentally challenged and all these other things.

41:35And I said, I'm going to know that anyway in the course of time. Sedating her when she's two hours old doesn't seem necessary. So I rolled out the first thing. They had a third thing they wanted to do. And I said, what do you think the chances are that if you did that, it would lead to a treatment that you would apply now that would actually make a difference? And much to my surprise, the doctor said, I think the odds are about 1 in 10 ,000. To which I said, I want to pass on that one too. Turns out it was a false positive. They tested my wife again for toxoplasmosis a few days later, and she came back negative.

42:11and I really do think it's important for patients to be empowered to feel like they can ask those questions. I feel like I can ask those questions because I have a PhD in economics and when I hear that my wife has toxoplasmosis, I go read about it. I understand just enough about the problem at least to ask smart questions. So that's a good reason for people to listen to this podcast for sure. The type of thing I like to do in this podcast is just introduce people to a different side of medicine. The part of economics that's always been most fascinating to me and I suspect to you is the ability to answer questions in this really creative but also rigorous way.

42:49Now, there's a lot of economic studies that are really creative, but when you think about what the implications are of that idea, it's hard to stretch out an implication that is really going to matter for someone's life. The beauty of, I think, Freakonomics MD, the podcast, is it takes the elements of Freakonomics that I've always liked and marries it with something that it's going to matter for people, which is their health and their well-being.

43:22Up until now, there's only been one project where Stephen Dubner and I allowed the use of the name Freakonomics without having day-to-day control of the operations, and that was a Freakonomics movie. Let me just say, it didn't turn out exactly as we hoped it would. People I Mostly Admire is part of the Freakonomics Radio Network and is produced by Freakonomics Radio. Morgan Levy is our producer and Jasmine Klinger is our engineer. All of the music you heard on this show was composed by Luis Guerra. Thanks for listening.

43:58Can I just make a suggestion? It should be Freakonomics MD-PhD. I have to drop the mic with that right now.

44:10The Freakonomics Radio Network. The hidden side of everything. With the Discovered Cashback Card, it's payback time when you earn cash back on everyday purchases. Activate and earn 5 % cash back at different categories each quarter on up to$1 ,500 in purchases. That's 5 % cash back at different places each quarter, like grocery stores, on gas, and at restaurants. It pays to discover. Terms apply. See discovery.com slash five for details. This episode is brought to you by Charles Schwab. Is there a right time to sell a stock? Are you taking the right risks with your portfolio? Financial decisions can be tricky, and often your own cognitive and emotional biases can lead you astray.

44:55Financial Decoder, an original podcast from Charles Schwab, can help. Join host Mark Riepe as he offers practical solutions to help overcome the cognitive and emotional biases that may affect your investing decisions. Listen at schwab.com slash financial decoder. Hey, Chicagoland, the Wayfair store is in your neighborhood at Edens Plaza and Wilmette. Finally, you can feel the fabric, sit on the sectionals and even open the refrigerators. Plus, our in-store designers will help you bring it all together with free one-on-one design support for any project on any budget. Yep, we said free. Oh, and did we mention the cafe?

45:31So what are you waiting for? Come see all that's in store. Visit the Wayfair store today at Edens Plaza in Wilmette. Wayfair, every style, every home.

From the publisher

He’s a Harvard physician and economist who just started a third job: host of the new podcast Freakonomics, M.D. He’s also Steve’s former student. The two discuss why medicine should embrace econ-style research, the ethics of human-challenge trials, and Bapu’s role in one of Steve’s, ahem, less-than-successful experiments.  This episode originally aired on August 21st, 2021.


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