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Biggest cities in US are losing hundreds of workers every day
A recent Gallup poll found that while 80% of Americans live in urban areas, only 12% said they want to live there. Asked where they would live if they had their choice, the top response was a rural area.
news  org:lite  data  poll  values  distribution  geography  urban-rural  usa  pro-rata  homo-hetero  arbitrage  supply-demand  interface-compatibility  revealed-preference  incentives 
28 days ago by nhaliday
Why general audience news will only get more ideologically polarized: propaganda pays the bills – Gene Expression
The “best” thing about the game that the Indian media played, and the game that the American media plays, is that the people believe that the propaganda is actually fair and balanced! Even the journalists themselves may believe the propaganda because many of them lack specialized knowledge to know when the people they interview are lying to them or misleading them (the Gell-Mann Amnesia Effect is really disturbing).

Finally, if you are one of those people who strangely prefer the truth, there is a way you can get it: become wealthy and buy the truth. If you are running a hedge-fund or some such other thing, information is not just a passive consumption good. Information is input into the production of more wealth and power. People in this sort of results-driven financial sector mine informants for truth in a very conscious manner to maximize returns for themselves and their clients. And of course, there exists a market for what is basically “reality-based journalism”. It’s just a market that is invisible to us plebs unless we find ourselves having access to nuggets of truth which no one wants to hear, but which global capital wants to profit from….

The “media” that you see and hear about. The media with the big budgets and large news organizations are actually just a simulacrum of an objective data-gathering and transmission institution. In reality, they are tribal newsletters. On the narrow scale, they often reinforce particular tribal narratives and ignore countervailing ones. But on a broader national scale, they collectively flatter our self-image as a people in a sometimes ludicrous fashion.
gnxp  scitariat  reflection  rhetoric  media  propaganda  cynicism-idealism  polarization  incentives  interests  supply-demand  truth  realness  biases  epistemic  politics  ideology  india  asia  gavisti  antiquity  iraq-syria  war  usa  class  finance  capital  paying-rent  prediction  trends  institutions  madisonian  civic  elite  vampire-squid  pessimism  contrarianism  info-dynamics 
8 weeks ago by nhaliday
The Falling Price of Fat | Pseudoerasmus
Summary : There are too many baroque explanations for the increased prevalence of obesity. I suggest a simple mechanism : falling food prices, rising incomes.
econotariat  broad-econ  pseudoE  economics  supply-demand  food  obesity  trends  explanans  cynicism-idealism  money  compensation  cost-benefit  backup  epidemiology  public-health  roots  regularizer  parsimony 
february 2018 by nhaliday
Why has the prevalence of obesity doubled? | SpringerLink
The prevalence of obesity has doubled over the last 25 years. We estimate the effects of multiple socio-environmental factors (e.g., physical demands at work, restaurants, food prices, cigarette smoking, food stamps, and urban sprawl) on obesity using NLSY data. Then we use the Oaxaca–Blinder decomposition technique to approximate the contribution of each socio-environmental factor to the increase during this time. Many socio-environmental factors significantly affect weight, but none are able to explain a large portion of the obesity increase. Decreases in cigarette smoking consistently explains about 2–4 % of the increase in obesity and BMI. Food stamp receipt also consistently affects the measures of weight, but the small decrease in food stamp program participation during the period we examine actually dampened the increases in obesity and BMI. Collectively, the socio-environmental factors we examine never explain more than about 6.5 % of the weight increases.
study  sociology  medicine  health  epidemiology  public-health  obesity  trends  roots  explanans  labor  supply-demand  food  welfare-state  urban-rural  variance-components  volo-avolo  questions 
february 2018 by nhaliday
The Grumpy Economist: Bitcoin and Bubbles
Bitcoin is not a very good money. It is a pure fiat money (no backing), whose value comes from limited supply plus these demands. As such it has the huge price fluctuations we see. It's an electronic version of gold, and the price variation should be a warning to economists who long for a return to  gold. My bet is that stable-value cryptocurrencies, offering one dollar per currency unit and low transactions costs, will prosper in the role of money. At least until there is a big inflation or sovereign debt crisis and a stable-value cryptocurrency not linked to government debt emerges.

https://twitter.com/GarettJones/status/939242620869660672
https://archive.is/Rrbg6
The Kareken-Wallace Cryptocurrency Price Indeterminacy theorem will someday receive the attention it deserves

https://www.mercatus.org/system/files/cryptocurrency-article.pdf
Cryptocurrencies also raise in a new way questions of exchange rate indeterminacy. As Kareken and Wallace (1981) observed, fiat currencies are all alike: slips of paper not redeemable for anything. Under a regime of floating exchange rates and no capital controls, and assuming some version of interest rate parity holds, there are an infinity of exchange rates between any two fiat currencies that constitute an equilibrium in their model.

The question of exchange rate indeterminacy is both more and less striking between cryptocurrencies than between fiat currencies. It is less striking because there are considerably more differences between cryptocurrencies than there are between paper money. Paper money is all basically the same. Cryptocurrencies sometimes have different characteristics from each other. For example, the algorithm used as the basis for mining makes a difference – it determines how professionalised the mining pools become. Litecoin uses an algorithm that tends to make mining less concentrated. Another difference is the capability of the cryptocurrency’s language for programming transactions. Ethereum is a new currency that boasts a much more robust language than Bitcoin. Zerocash is another currency that offers much stronger anonymity than Bitcoin. To the extent that cryptocurrencies differ from each other more than fiat currencies do, those differences might be able to pin down exchange rates in a model like Kareken and Wallace’s.

On the other hand, exchange rate indeterminacy could be more severe among cryptocurrencies than between fiat currencies because it is easy to simply create an exact copy of an open source cryptocurrency. There are even websites on which you can create and download the software for your own cryptocurrency with a few clicks of a mouse. These currencies are exactly alike except for their names and other identifying information. Furthermore, unlike fiat currencies, they don’t benefit from government acceptance or optimal currency area considerations that can tie a currency to a given territory.

Even identical currencies, however, can differ in terms of the quality of governance. Bitcoin currently has high quality governance institutions. The core developers are competent and conservative, and the mining and user communities are serious about making the currency work. An exact Bitcoin clone is likely to have a difficult time competing with Bitcoin unless it can promise similarly high-quality governance. When a crisis hits, users of identical currencies are going to want to hold the one that is mostly likely to weather the storm. Consequently, between currencies with identical technical characteristics, we think governance creates something close to a winner-take-all market. Network externalities are very strong in payment systems, and the governance question with respect to cryptocurrencies in particular compounds them.

https://twitter.com/GarettJones/status/939259281039380480
https://archive.is/ldof8
Explaining a price rise via future increases in the asset's value isn't good economics. The invisible hand should be pushing today's price up to the point where it earns normal expected returns. +
I don't doubt the likelihood of a future cryptocurrency being widely used, but that doesn't pin down the price of any one cryptocurrency as the Kareken-Wallace result shows. There may be a big first mover advantage for Bitcoin but ease of replication makes it a fragile dominance.

https://twitter.com/netouyo_/status/939566116229218306
https://archive.is/CtE6Q
I actually can't believe governments are allowing bitcoin to exist (they must be fully on board with going digital at some point)

btc will eventually come in direct competition with national currencies, which will have to raise rates dramatically, or die

http://www.thebigquestions.com/2017/12/08/matters-of-money/
The technology of Bitcoin Cash is very similar to the technology of Bitcoin. It offers the same sorts of anonymity, security, and so forth. There are some reasons to believe that in the future, Bitcoin Cash will be a bit easier to trade than Bitcoin (though that is not true in the present), and there are some other technological differences between them, but I’d be surprised to learn that those differences are accounting for any substantial fraction of the price differential.

The total supplies of Bitcoins and of Bitcoin Cash are currently about equal (because of the way that Bitcoin Cash originated). In each case, the supply will gradually grow to 21 million and then stop.

Question 1: Given the near identical properties of these two currencies, how can one sell for ten times the price of the other? Perhaps the answer involves the word “bubble”, but I’d be more interested in answers that assume (at least for the sake of argument) that the price of Bitcoin fairly reflects its properties as a store of value. Given that assumption, is the price differential entirely driven by the fact that Bitcoin came first? Is there that much of a first-mover advantage in this kind of game?

Question 2: Given the existence of other precious metals (e.g. platinum) what accounts for the dominance of gold as a physical store of value? (I note, for example, that when people buy gold as a store of value, they don’t often hesitate out of fear that gold will be displaced by platinum in the foreseeable future.) Is this entirely driven by the fact that gold happened to come first?

Question 3: Are Questions 1 and 2 the same question? Are the dominance of Bitcoin in the digital store-of-value market and the dominance of gold in the physical store-of-value market two sides of the same coin, so to speak? Or do they require fundamentally different explanations?

https://twitter.com/GarettJones/status/944582032780382208
https://archive.is/kqTXg
Champ/Freeman in 2001 explain why the dollar-bitcoin exchange rate is inherently unstable, and why the price of cryptocurrencies is indeterminate:

https://twitter.com/GarettJones/status/945046058073071617
https://archive.is/Y0OQB
Lay down a marker:
And remember that the modern macro dogma is that monetary systems matter little for prosperity, once bare competence is achieved.
econotariat  randy-ayndy  commentary  current-events  trends  cryptocurrency  bitcoin  money  monetary-fiscal  economics  cycles  multi  twitter  social  garett-jones  pdf  white-paper  article  macro  trade  incentives  equilibrium  backup  degrees-of-freedom  uncertainty  supply-demand  markets  gnon  🐸  government  gedanken  questions  comparison  analogy  explanans  fungibility-liquidity 
december 2017 by nhaliday
microeconomics - Partial vs. general equilibrium - Economics Stack Exchange
The main difference between partial and general equilibrium models is, that partial equilibrium models assume that what happens on the market one wants to analyze has no effect on other markets.
q-n-a  stackex  explanation  jargon  comparison  concept  models  economics  micro  macro  equilibrium  supply-demand  markets  methodology  competition 
november 2017 by nhaliday
ON THE ORIGIN OF STATES: STATIONARY BANDITS AND TAXATION IN EASTERN CONGO
As a foundation for this study, I organized the collection of village-level panel data on violent actors, managing teams of surveyors, village elders, and households in 380 war-torn areas of DRC. I introduce optimal taxation theory to the decision of violent actors to establish local monopolies of violence. The value of such decision hinges on their ability to tax the local population. A sharp rise in the global demand for coltan, a bulky commodity used in the electronics industry, leads violent actors to impose monopolies of violence and taxation in coltan sites, which persist even years after demand collapses. A similar rise in the demand for gold, easier to conceal and more difficult to tax, does not. However, the groups who nevertheless control gold sites are more likely to respond by undertaking investments in fiscal capacity, consistent with the difficulty to observe gold, and with well-documented trajectories of state formation in Europe (Ardant, 1975). The findings support the view that the expected revenue from taxation, determined in particular by tax base elasticity and costly investments in fiscal capacity, can explain the stages of state formation preceding the states as we recognize them today.
pdf  study  economics  growth-econ  broad-econ  political-econ  polisci  leviathan  north-weingast-like  unintended-consequences  institutions  microfoundations  econometrics  empirical  government  taxes  rent-seeking  supply-demand  incentives  property-rights  africa  developing-world  peace-violence  interests  longitudinal  natural-experiment  endogenous-exogenous  archaeology  trade  world  feudal  roots  ideas  cost-benefit  econ-productivity  traces 
november 2017 by nhaliday
Friedrich von Hayek, “The Use of Knowledge in Society” (1945)
“The price system is just one of those formations which man has learned to use ... Through it not only a division of labor but also a coördinated utilization of resources based on an equally divided knowledge has become possible.”

“there is beyond question a body of very important but unorganized knowledge which cannot possibly be called scientific in the sense of knowledge of general rules: the knowledge of the particular circumstances of time and place. It is with respect to this that practically every individual has some advantage over all others because he possesses unique information of which beneficial use might be made”
pdf  org:junk  org:ngo  randy-ayndy  essay  big-peeps  economics  rhetoric  classic  markets  capitalism  coordination  info-dynamics  knowledge  bounded-cognition  supply-demand  decentralized  civil-liberty  institutions  quotes  reason 
november 2017 by nhaliday
Do Parents Value School Effectiveness?
Parents prefer schools that enroll high-achieving peers, and these schools generate larger improvements in short- and long-run student outcomes. We find no relationship between preferences and school effectiveness after controlling for peer quality.
study  economics  sociology  education  human-capital  parenting  correlation  supply-demand  ranking  higher-ed  phalanges  impetus  field-study  nyc  usa  northeast  judgement 
october 2017 by nhaliday
Health Services as Credence Goods: A Field Experiment by Felix Gottschalk, Wanda Mimra, Christian Waibel :: SSRN
A test patient who does not need treatment is sent to 180 dentists to receive treatment recommendations. In the experiment, we vary two factors: First, the information that the patient signals to the dentist. Second, we vary the perceived socioeconomic status (SES) of the test patient. Furthermore, we collected data to construct several measures of short- and long-term demand and competition as well as dentist and practice characteristics. We find that the patient receives an overtreatment recommendation in _more than every fourth visit_. A low short-term demand, indicating excess capacities, leads to significantly more overtreatment recommendations. Physician density and their price level, however, do not have a significant effect on overtreatment. Furthermore, we observe significantly less overtreatment recommendations for the patient with higher SES compared to lower SES under standard information. More signalled information however does not significantly reduce overtreatment.

How much dentists are ethically concerned about overtreatment; a vignette-based survey in Switzerland: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4474445/
Are Dentists Overtreating Your Teeth?: https://well.blogs.nytimes.com/2011/11/28/are-dentists-overtreating-your-teeth/
Have you had a rash of fillings after years of healthy teeth? The culprit may be “microcavities,” and not every dentist thinks they need to be treated, reports today’s Science Times.
How Dentists Rip Us Off: https://www.dentistat.com/ReaderDigestArticle.pdf

https://www.npr.org/templates/story/story.php?storyId=130356647
study  economics  micro  field-study  markets  trust  healthcare  dental  crooked  supply-demand  incentives  class  signaling  🎩  trivia  cocktail  europe  germanic  medicine  meta:medicine  integrity  ethics  free-riding  data  scale  inequality  news  org:rec  org:health  info-econ  pdf  org:mag  left-wing  multi 
october 2017 by nhaliday

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