nhaliday + endogenous-exogenous   127

Contingent, Not Arbitrary | Truth is contingent on what is, not on what we wish to be true.
A vital attribute of a value system of any kind is that it works. I consider this a necessary (but not sufficient) condition for goodness. A value system, when followed, should contribute to human flourishing and not produce results that violate its core ideals. This is a pragmatic, I-know-it-when-I-see-it definition. I may refine it further if the need arises.

I think that the prevailing Western values fail by this standard. I will not spend much time arguing this; many others have already. If you reject this premise, this blog may not be for you.

I consider old traditions an important source of wisdom: they have proven their worth over centuries of use. Where they agree, we should listen. Where they disagree, we should figure out why. Where modernity departs from tradition, we should be wary of the new.

Tradition has one nagging problem: it was abandoned by the West. How and why did that happen? I consider this a central question. I expect the reasons to be varied and complex. Understanding them seems necessary if we are to fix what may have been broken.

In short, I want to answer these questions:

1. How do values spread and persist? An ideology does no good if no one holds it.
2. Which values do good? Sounding good is worse than useless if it leads to ruin.

The ultimate hope would be to find a way to combine the two. Many have tried and failed. I don’t expect to succeed either, but I hope I’ll manage to clarify the questions.

Christianity Is The Schelling Point: https://contingentnotarbitrary.com/2018/02/22/christianity-is-the-schelling-point/
Restoring true Christianity is both necessary and sufficient for restoring civilization. The task is neither easy nor simple but that’s what it takes. It is also our best chance of weathering the collapse if that’s too late to avoid.

Christianity is the ultimate coordination mechanism: it unites us with a higher purpose, aligns us with the laws of reality and works on all scales, from individuals to entire civilizations. Christendom took over the world and then lost it when its faith faltered. Historically and culturally, Christianity is the unique Schelling point for the West – or it would be if we could agree on which church (if any) was the true one.

Here are my arguments for true Christianity as the Schelling point. I hope to demonstrate these points in subsequent posts; for now I’ll just list them.

- A society of saints is the most powerful human arrangement possible. It is united in purpose, ideologically stable and operates in harmony with natural law. This is true independent of scale and organization: from military hierarchy to total decentralization, from persecuted minority to total hegemony. Even democracy works among saints – that’s why it took so long to fail.
- There is such a thing as true Christianity. I don’t know how to pinpoint it but it does exist; that holds from both secular and religious perspectives. Our task is to converge on it the best we can.
- Don’t worry too much about the existence of God. I’m proof that you don’t need that assumption in order to believe – it helps but isn’t mandatory.

Pascal’s Wager never sat right with me. Now I know why: it’s a sucker bet. Let’s update it.

If God exists, we must believe because our souls and civilization depend on it. If He doesn’t exist, we must believe because civilization depends on it.

Morality Should Be Adaptive: http://www.overcomingbias.com/2012/04/morals-should-be-adaptive.html
I agree with this
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april 2018 by nhaliday
The Hanson-Yudkowsky AI-Foom Debate - Machine Intelligence Research Institute
How Deviant Recent AI Progress Lumpiness?: http://www.overcomingbias.com/2018/03/how-deviant-recent-ai-progress-lumpiness.html
I seem to disagree with most people working on artificial intelligence (AI) risk. While with them I expect rapid change once AI is powerful enough to replace most all human workers, I expect this change to be spread across the world, not concentrated in one main localized AI system. The efforts of AI risk folks to design AI systems whose values won’t drift might stop global AI value drift if there is just one main AI system. But doing so in a world of many AI systems at similar abilities levels requires strong global governance of AI systems, which is a tall order anytime soon. Their continued focus on preventing single system drift suggests that they expect a single main AI system.

The main reason that I understand to expect relatively local AI progress is if AI progress is unusually lumpy, i.e., arriving in unusually fewer larger packages rather than in the usual many smaller packages. If one AI team finds a big lump, it might jump way ahead of the other teams.

However, we have a vast literature on the lumpiness of research and innovation more generally, which clearly says that usually most of the value in innovation is found in many small innovations. We have also so far seen this in computer science (CS) and AI. Even if there have been historical examples where much value was found in particular big innovations, such as nuclear weapons or the origin of humans.

Apparently many people associated with AI risk, including the star machine learning (ML) researchers that they often idolize, find it intuitively plausible that AI and ML progress is exceptionally lumpy. Such researchers often say, “My project is ‘huge’, and will soon do it all!” A decade ago my ex-co-blogger Eliezer Yudkowsky and I argued here on this blog about our differing estimates of AI progress lumpiness. He recently offered Alpha Go Zero as evidence of AI lumpiness:

...

In this post, let me give another example (beyond two big lumps in a row) of what could change my mind. I offer a clear observable indicator, for which data should have available now: deviant citation lumpiness in recent ML research. One standard measure of research impact is citations; bigger lumpier developments gain more citations that smaller ones. And it turns out that the lumpiness of citations is remarkably constant across research fields! See this March 3 paper in Science:

I Still Don’t Get Foom: http://www.overcomingbias.com/2014/07/30855.html
All of which makes it look like I’m the one with the problem; everyone else gets it. Even so, I’m gonna try to explain my problem again, in the hope that someone can explain where I’m going wrong. Here goes.

“Intelligence” just means an ability to do mental/calculation tasks, averaged over many tasks. I’ve always found it plausible that machines will continue to do more kinds of mental tasks better, and eventually be better at pretty much all of them. But what I’ve found it hard to accept is a “local explosion.” This is where a single machine, built by a single project using only a tiny fraction of world resources, goes in a short time (e.g., weeks) from being so weak that it is usually beat by a single human with the usual tools, to so powerful that it easily takes over the entire world. Yes, smarter machines may greatly increase overall economic growth rates, and yes such growth may be uneven. But this degree of unevenness seems implausibly extreme. Let me explain.

If we count by economic value, humans now do most of the mental tasks worth doing. Evolution has given us a brain chock-full of useful well-honed modules. And the fact that most mental tasks require the use of many modules is enough to explain why some of us are smarter than others. (There’d be a common “g” factor in task performance even with independent module variation.) Our modules aren’t that different from those of other primates, but because ours are different enough to allow lots of cultural transmission of innovation, we’ve out-competed other primates handily.

We’ve had computers for over seventy years, and have slowly build up libraries of software modules for them. Like brains, computers do mental tasks by combining modules. An important mental task is software innovation: improving these modules, adding new ones, and finding new ways to combine them. Ideas for new modules are sometimes inspired by the modules we see in our brains. When an innovation team finds an improvement, they usually sell access to it, which gives them resources for new projects, and lets others take advantage of their innovation.

...

In Bostrom’s graph above the line for an initially small project and system has a much higher slope, which means that it becomes in a short time vastly better at software innovation. Better than the entire rest of the world put together. And my key question is: how could it plausibly do that? Since the rest of the world is already trying the best it can to usefully innovate, and to abstract to promote such innovation, what exactly gives one small project such a huge advantage to let it innovate so much faster?

...

In fact, most software innovation seems to be driven by hardware advances, instead of innovator creativity. Apparently, good ideas are available but must usually wait until hardware is cheap enough to support them.

Yes, sometimes architectural choices have wider impacts. But I was an artificial intelligence researcher for nine years, ending twenty years ago, and I never saw an architecture choice make a huge difference, relative to other reasonable architecture choices. For most big systems, overall architecture matters a lot less than getting lots of detail right. Researchers have long wandered the space of architectures, mostly rediscovering variations on what others found before.

Some hope that a small project could be much better at innovation because it specializes in that topic, and much better understands new theoretical insights into the basic nature of innovation or intelligence. But I don’t think those are actually topics where one can usefully specialize much, or where we’ll find much useful new theory. To be much better at learning, the project would instead have to be much better at hundreds of specific kinds of learning. Which is very hard to do in a small project.

What does Bostrom say? Alas, not much. He distinguishes several advantages of digital over human minds, but all software shares those advantages. Bostrom also distinguishes five paths: better software, brain emulation (i.e., ems), biological enhancement of humans, brain-computer interfaces, and better human organizations. He doesn’t think interfaces would work, and sees organizations and better biology as only playing supporting roles.

...

Similarly, while you might imagine someday standing in awe in front of a super intelligence that embodies all the power of a new age, superintelligence just isn’t the sort of thing that one project could invent. As “intelligence” is just the name we give to being better at many mental tasks by using many good mental modules, there’s no one place to improve it. So I can’t see a plausible way one project could increase its intelligence vastly faster than could the rest of the world.

Takeoff speeds: https://sideways-view.com/2018/02/24/takeoff-speeds/
Futurists have argued for years about whether the development of AGI will look more like a breakthrough within a small group (“fast takeoff”), or a continuous acceleration distributed across the broader economy or a large firm (“slow takeoff”).

I currently think a slow takeoff is significantly more likely. This post explains some of my reasoning and why I think it matters. Mostly the post lists arguments I often hear for a fast takeoff and explains why I don’t find them compelling.

(Note: this is not a post about whether an intelligence explosion will occur. That seems very likely to me. Quantitatively I expect it to go along these lines. So e.g. while I disagree with many of the claims and assumptions in Intelligence Explosion Microeconomics, I don’t disagree with the central thesis or with most of the arguments.)
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april 2018 by nhaliday
Randomizing Religion: The Impact of Protestant Evangelism on Economic Outcomes
To test the causal impact of religiosity, we conducted a randomized evaluation of an evangelical Protestant Christian values and theology education program that consisted of 15 weekly half-hour sessions. We analyze outcomes for 6,276 ultra-poor Filipino households six months after the program ended. We find _significant increases in religiosity and income_, no significant changes in total labor supply, assets, consumption, food security, or _life satisfaction, and a significant decrease in perceived relative economic status_. Exploratory analysis suggests the program may have improved hygienic practices and increased household discord, and that _the income treatment effect may operate through increasing grit_.

Social Cohesion, Religious Beliefs, and the Effect of Protestantism on Suicide: https://www.mitpressjournals.org/doi/abs/10.1162/REST_a_00708
In an economic theory of suicide, we model social cohesion of the religious community and religious beliefs about afterlife as two mechanisms by which Protestantism increases suicide propensity. We build a unique micro-regional dataset of 452 Prussian counties in 1816-21 and 1869-71, when religiousness was still pervasive. Exploiting the concentric dispersion of Protestantism around Wittenberg, our instrumental-variable model finds that Protestantism had a substantial positive effect on suicide. Results are corroborated in first-difference models. Tests relating to the two mechanisms based on historical church-attendance data and modern suicide data suggest that the sociological channel plays the more important role.
study  field-study  sociology  wonkish  intervention  religion  theos  branches  evidence-based  christianity  protestant-catholic  asia  developing-world  economics  compensation  money  labor  human-capital  emotion  s-factor  discipline  multi  social-structure  death  individualism-collectivism  n-factor  cohesion  causation  endogenous-exogenous  history  early-modern  europe  germanic  geography  within-group  urban-rural 
february 2018 by nhaliday
Effects of Education on Political Opinions: An International Study | International Journal of Public Opinion Research | Oxford Academic
Education and Political Party: The Effects of College or Social Class?: https://www.jstor.org/stable/2778029
The impact of education on political ideology: Evidence from European compulsory education reforms: https://www.sciencedirect.com/science/article/pii/S0272775716301704
correlation is with leftism, causal effect is shift to right

Greg thinks there are some effects: https://pinboard.in/u:nhaliday/b:5adca8f16265

https://twitter.com/GarettJones/status/964209775419457536
https://archive.is/oFELz
https://archive.is/f1DBF
https://archive.is/5iiqn

http://econlog.econlib.org/archives/2008/12/education_ideol.html

https://twitter.com/pseudoerasmus/status/963451867912130561
https://archive.is/sHI7g
https://archive.is/B5Gdv
https://archive.is/hFERC
https://archive.is/8IUDm
Bryan Caplan has written a very persuasive book suggesting that retention/transfer of learning is very low. how do we know it’s not the same with the “PoMo ethos”
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february 2018 by nhaliday
Education and Political Participation: Exploring the Causal Link | SpringerLink
To test for a causal effect of education, we exploit the rise in education levels among males induced by the Vietnam draft. We find little reliable evidence that education induced by the draft significantly increases participation rates.
study  politics  polisci  education  human-capital  correlation  confounding  endogenous-exogenous  natural-experiment  null-result  military  war  history  mostly-modern  cold-war  asia  developing-world  sociology  phalanges  stylized-facts 
december 2017 by nhaliday
The Long-run Effects of Agricultural Productivity on Conflict, 1400-1900∗
This paper provides evidence of the long-run effects of a permanent increase in agricultural productivity on conflict. We construct a newly digitized and geo-referenced dataset of battles in Europe, the Near East and North Africa covering the period between 1400 and 1900 CE. For variation in permanent improvements in agricultural productivity, we exploit the introduction of potatoes from the Americas to the Old World after the Columbian Exchange. We find that the introduction of potatoes permanently reduced conflict for roughly two centuries. The results are driven by a reduction in civil conflicts

http://marginalrevolution.com/marginalrevolution/2017/12/monday-assorted-links-135.html#comment-159746885
#4 An obvious counterfactual is of course the potato blight (1844 and beyond) in Europe. Here’s the Wikipedia page ‘revolutions of 1848’ https://en.wikipedia.org/wiki/Revolutions_of_1848
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december 2017 by nhaliday
The Power of Abortion Policy - Marginal REVOLUTION
I provide new evidence on the relative “powers” of contraception and abortion policy in effecting the dramatic social transformations of the 1960s and 1970s. Trends in sexual behavior suggest that young women’s increased access to the birth control pill fueled the sexual revolution, but neither these trends nor difference-in-difference estimates support the view that this also led to substantial changes in family formation. Rather, the estimates robustly suggest that it was liberalized access to abortion that allowed large numbers of women to delay marriage and motherhood.
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december 2017 by nhaliday
Land, history or modernization? Explaining ethnic fractionalization: Ethnic and Racial Studies: Vol 38, No 2
Ethnic fractionalization (EF) is frequently used as an explanatory tool in models of economic development, civil war and public goods provision. However, if EF is endogenous to political and economic change, its utility for further research diminishes. This turns out not to be the case. This paper provides the first comprehensive model of EF as a dependent variable.
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december 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.
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november 2017 by nhaliday
Do High School Sports Build or Reveal Character?
We examine the extent to which participation in high school athletics has beneficial effects on future education, labor market, and health outcomes. Due to the absence of plausible instruments in observational data, we use recently developed methods that relate selection on observables with selection on unobservables to estimate bounds on the causal effect of athletics participation. We analyze these effects in the US separately for men and women using three different nationally representative longitudinal data sets that each link high school athletics participation with later-life outcomes. We do not find consistent evidence of individual benefits reported in many previous studies – once we have accounted for selection, high school athletes are no more likely to attend college, earn higher wages, or participate in the labor force. However, we do find that men (but not women) who participated in high school athletics are more likely to exercise regularly as adults. Nevertheless, athletes are no less likely to be obese.
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november 2017 by nhaliday
Global Evidence on Economic Preferences
- Benjamin Enke et al

This paper studies the global variation in economic preferences. For this purpose, we present the Global Preference Survey (GPS), an experimentally validated survey dataset of time preference, risk preference, positive and negative reciprocity, altruism, and trust from 80,000 individuals in 76 countries. The data reveal substantial heterogeneity in preferences across countries, but even larger within-country heterogeneity. Across individuals, preferences vary with age, gender, and cognitive ability, yet these relationships appear partly country specific. At the country level, the data reveal correlations between preferences and bio-geographic and cultural variables such as agricultural suitability, language structure, and religion. Variation in preferences is also correlated with economic outcomes and behaviors. Within countries and subnational regions, preferences are linked to individual savings decisions, labor market choices, and prosocial behaviors. Across countries, preferences vary with aggregate outcomes ranging from per capita income, to entrepreneurial activities, to the frequency of armed conflicts.

...

This paper explores these questions by making use of the core features of the GPS: (i) coverage of 76 countries that represent approximately 90 percent of the world population; (ii) representative population samples within each country for a total of 80,000 respondents, (iii) measures designed to capture time preference, risk preference, altruism, positive reciprocity, negative reciprocity, and trust, based on an ex ante experimental validation procedure (Falk et al., 2016) as well as pre-tests in culturally heterogeneous countries, (iv) standardized elicitation and translation techniques through the pre-existing infrastructure of a global polling institute, Gallup. Upon publication, the data will be made publicly available online. The data on individual preferences are complemented by a comprehensive set of covariates provided by the Gallup World Poll 2012.

...

The GPS preference measures are based on twelve survey items, which were selected in an initial survey validation study (see Falk et al., 2016, for details). The validation procedure involved conducting multiple incentivized choice experiments for each preference, and testing the relative abilities of a wide range of different question wordings and formats to predict behavior in these choice experiments. The particular items used to construct the GPS preference measures were selected based on optimal performance out of menus of alternative items (for details see Falk et al., 2016). Experiments provide a valuable benchmark for selecting survey items, because they can approximate the ideal choice situations, specified in economic theory, in which individuals make choices in controlled decision contexts. Experimental measures are very costly, however, to implement in a globally representative sample, whereas survey measures are much less costly.⁴ Selecting survey measures that can stand in for incentivized revealed preference measures leverages the strengths of both approaches.

The Preference Survey Module: A Validated Instrument for Measuring Risk, Time, and Social Preferences: http://ftp.iza.org/dp9674.pdf

Table 1: Survey items of the GPS

Figure 1: World maps of patience, risk taking, and positive reciprocity.
Figure 2: World maps of negative reciprocity, altruism, and trust.

Figure 3: Gender coefficients by country. For each country, we regress the respective preference on gender, age and its square, and subjective math skills, and plot the resulting gender coefficients as well as their significance level. In order to make countries comparable, each preference was standardized (z-scores) within each country before computing the coefficients.

Figure 4: Cognitive ability coefficients by country. For each country, we regress the respective preference on gender, age and its square, and subjective math skills, and plot the resulting coefficients on subjective math skills as well as their significance level. In order to make countries comparable, each preference was standardized (z-scores) within each country before computing the coefficients.

Figure 5: Age profiles by OECD membership.

Table 6: Pairwise correlations between preferences and geographic and cultural variables

Figure 10: Distribution of preferences at individual level.
Figure 11: Distribution of preferences at country level.

interesting digression:
D Discussion of Measurement Error and Within- versus Between-Country Variation
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october 2017 by nhaliday
Frontier Culture: The Roots and Persistence of “Rugged Individualism” in the United States∗
In a classic 1893 essay, Frederick Jackson Turner argued that the American frontier promoted individualism. We revisit the Frontier Thesis and examine its relevance at the subnational level. Using Census data and GIS techniques, we track the frontier throughout the 1790–1890 period and construct a novel, county-level measure of historical frontier experience. We document the distinctive demographics of frontier locations during this period—disproportionately male, prime-age adult, foreign-born, and illiterate—as well as their higher levels of individualism, proxied by the share of infrequent names among children. Many decades after the closing of the frontier, counties with longer historical frontier experience exhibit more prevalent individualism and opposition to redistribution and regulation. We take several steps towards a causal interpretation, including an instrumental variables approach that exploits variation in the speed of westward expansion induced by prior national immigration in- flows. Using linked historical Census data, we identify mechanisms giving rise to a persistent frontier culture. Greater individualism on the frontier was not driven solely by selective migration, suggesting that frontier conditions may have shaped behavior and values. We provide evidence suggesting that rugged individualism may be rooted in its adaptive advantage on the frontier and the opportunities for upward mobility through effort.

https://twitter.com/whyvert/status/921900860224897024
https://archive.is/jTzSe

The Origins of Cultural Divergence: Evidence from a Developing Country.: http://economics.handels.gu.se/digitalAssets/1643/1643769_37.-hoang-anh-ho-ncde-2017-june.pdf
Cultural norms diverge substantially across societies, often even within the same country. In this paper, we test the voluntary settlement hypothesis, proposing that individualistic people tend to self-select into migrating out of reach from collectivist states towards the periphery and that such patterns of historical migration are reflected even in the contemporary distribution of norms. For more than one thousand years during the first millennium CE, northern Vietnam was under an exogenously imposed Chinese rule. From the eleventh to the eighteenth centuries, ancient Vietnam gradually expanded its territory through various waves of southward conquest. We demonstrate that areas being annexed earlier into ancient Vietnam are nowadays more (less) prone to collectivist (individualist) culture. We argue that the southward out-migration of individualist people was the main mechanism behind this finding. The result is consistent across various measures obtained from an extensive household survey and robust to various control variables as well as to different empirical specifications, including an instrumental variable estimation. A lab-in-the-field experiment also confirms the finding.
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october 2017 by nhaliday
Alcohol consumption and lifetime change in cognitive ability: a gene × environment interaction study | SpringerLink
We found a significant gene × alcohol consumption interaction on lifetime cognitive change (p = 0.007). Individuals with higher genetic ability to process alcohol showed relative improvements in cognitive ability with more consumption, whereas those with low processing capacity showed a negative relationship between cognitive change and alcohol consumption with more consumption.
study  psychology  cog-psych  psychometrics  iq  metabolic  ethanol  mendel-randomization  endo-exo  GxE  homo-hetero  biodet  behavioral-gen  environmental-effects  endogenous-exogenous 
october 2017 by nhaliday
Dressed for Success? The Effect of School Uniforms on Student Achievement and Behavior
Each school in the district determines adoption independently, providing variation over schools and time. By including student and school fixed-effects we find evidence that uniform adoption improves attendance in secondary grades, while in elementary schools they generate large increases in teacher retention.
study  economics  sociology  econometrics  natural-experiment  endo-exo  usa  the-south  social-norms  intervention  policy  wonkish  education  human-capital  management  industrial-org  organizing  input-output  evidence-based  endogenous-exogenous 
october 2017 by nhaliday
1 Genetics and Crime
The broader construct of antisocial behavior – which includes criminal offending, as well as aggression – also shows substantial genetic influence. In a meta-analysis combining effect sizes in 51 twin and adoption studies, Rhee and Waldman (2002) reported a heritability estimate of 41 per cent, with the remaining 59 per cent of variance being due to environmental factors. Interestingly, when comparing results for various definitions of antisocial behavior, only criminal offending appeared to be influenced by both additive genetic effects and non-additive genetic effects – possibly due to genetic dominance and epistatic interactions between genes – based on a pattern of results whereby, on average, identical (monozygotic) twin correlations are more than twice the value of fraternal (dizygotic) twin correlations, and also that biological parent–offspring correlations are less than fraternal twin correlations. Such non-additive genetic effects could arise if one or more high risk alleles act in a recessive fashion, or if certain alleles at one locus affect gene expression at other loci (epistasis).

One intriguing aspect of the literature on genetics and crime is that the strong and consistent genetic influence seen for property offending does not hold true for violent criminal convictions. None of the major adoption studies in Scandinavia or the United States found any elevated risk for violent convictions as a function of either biological or adoptive parent criminal offending, although one early twin study did find greater identical (monozygotic) than fraternal (dizygotic) concordance for violent convictions (see Cloninger and Gottesman, 1987). This pattern of twin, but not parent-offspring, similarity for violent criminal behavior suggests the possibility of non-additive genetic effects due to dominance or epistasis, which would result in increased resemblance for siblings (and twins), but not for parents and offspring. Thus, there may be genetic risk for violent crimes such as murder and rape, which may stem from rare recessive genes, or specific combinations of alleles that do not appear in studies of vertical transmission across generations.

A Swedish national twin study of criminal behavior and its violent, white-collar and property subtypes: https://www.cambridge.org/core/journals/psychological-medicine/article/a-swedish-national-twin-study-of-criminal-behavior-and-its-violent-white-collar-and-property-subtypes/0D9A88185ED0FD5525A5EBD5D2EBA117
For all criminal convictions, heritability was estimated at around 45% in both sexes, with the shared environment accounting for 18% of the variance in liability in females and 27% in males. The correlation of these risk factors across sexes was estimated at +0.63. In men, the magnitudes of genetic and environmental influence were similar in the three criminal conviction subtypes. However, for violent and white-collar convictions, nearly half and one-third of the genetic effects were respectively unique to that criminal subtype. About half of the familial environmental effects were unique to property convictions.

Heritability, Assortative Mating and Gender Differences in Violent Crime: Results from a Total Population Sample Using Twin, Adoption, and Sibling Models: https://link.springer.com/article/10.1007/s10519-011-9483-0
Using 36k twins, violent crime was moderately heritable (~ 55%) w/ 13% shared environment influence. Using 1.5 mil siblings, heritability was higher for males, & family environment higher for females. Moderate assortative mating for violent crime (r = .4).

The impact of neighbourhood deprivation on adolescent violent criminality and substance misuse: A longitudinal, quasi-experimental study of the total Swedish population: https://academic.oup.com/ije/article/42/4/1057/656274/The-impact-of-neighbourhood-deprivation-on
In the crude model, an increase of 1 SD in neighbourhood deprivation was associated with a 57% increase in the odds of being convicted of a violent crime (95% CI 52%–63%). The effect was greatly attenuated when adjustment was made for a number of observed confounders (OR 1.09, 95% CI 1.06–1.11). When we additionally adjusted for unobserved familial confounders, the effect was no longer present (OR 0.96, 95% CI 0.84–1.10). Similar results were observed for substance misuse. The results were not due to poor variability either between neighbourhoods or within families.

Childhood family income, adolescent violent criminality and substance misuse: quasi-experimental total population study: http://bjp.rcpsych.org/content/early/2014/08/14/bjp.bp.113.136200
https://www.economist.com/news/science-and-technology/21613303-disturbing-study-link-between-incomes-and-criminal-behaviour-have-and
What did surprise him was that when he looked at families which had started poor and got richer, the younger children—those born into relative affluence—were just as likely to misbehave when they were teenagers as their elder siblings had been. Family income was not, per se, the determining factor.

Indicators of domestic/intimate partner violence are structured by genetic and nonshared environmental influences: https://www.researchgate.net/publication/233737219_Indicators_of_domesticintimate_partner_violence_are_structured_by_genetic_and_nonshared_environmental_influences
Three indicators of IPV were measured and genetic factors accounted for 24% of the variance in hitting one's partner, 54% of the variance in injuring one's partner, and 51% of the variance in forcing sexual activity on one's partner. The shared environment explained none of the variance across all three indicators and the nonshared environment explained the remainder of the variance.
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october 2017 by nhaliday
GOP tax plan would provide major gains for richest 1%, uneven benefits for the middle class, report says - The Washington Post
https://twitter.com/ianbremmer/status/913863513038311426
https://archive.is/PYRx9
Trump tweets: For his voters.
Tax plan: Something else entirely.
https://twitter.com/tcjfs/status/913864779256692737
https://archive.is/5bzQz
This is appallingly stupid if accurate

https://www.nytimes.com/interactive/2017/11/28/upshot/what-the-tax-bill-would-look-like-for-25000-middle-class-families.html
https://www.nytimes.com/interactive/2017/11/30/us/politics/tax-cuts-increases-for-your-income.html

Treasury Removes Paper at Odds With Mnuchin’s Take on Corporate-Tax Cut’s Winners: https://www.wsj.com/articles/treasury-removes-paper-at-odds-with-mnuchins-take-on-corporate-tax-cuts-winners-1506638463

Tax changes for graduate students under the Tax Cuts and Jobs Act: https://bcide.gitlab.io/post/gop-tax-plan/
H.R.1 – 155th Congress (Tax Cuts and Jobs Act) 1 proposes changes to the US Tax Code that threatens to destroy the finances of STEM graduate students nationwide. The offending provision, 1204(a)(3), strikes section 117(d) 2 of the US Tax Code. This means that under the proposal, tuition waivers are considered taxable income.

For graduate students, this means an increase of thousands of dollars in owed federal taxes. Below I show a calculation for my own situation. The short of it is this: My federal taxes increase from ~7.5% of my income to ~31%. I will owe about $6300 more in federal taxes under this legislation. Like many other STEM students, my choices would be limited to taking on significant debt or quitting my program entirely.

The Republican War on College: https://www.theatlantic.com/business/archive/2017/11/republican-college/546308/

Trump's plan to tax colleges will harm higher education — but it's still a good idea: http://www.businessinsider.com/trump-tax-plan-taxing-colleges-is-a-good-idea-2017-11
- James Miller

The Republican Tax Plan Is a Disaster for Families With Children: http://www.motherjones.com/kevin-drum/2017/11/the-republican-tax-plan-is-a-disaster-for-families-with-children/
- Kevin Drum

The gains from cutting corporate tax rates: http://marginalrevolution.com/marginalrevolution/2017/11/corporate-taxes-2.html
I’ve been reading in this area on and off since the 1980s, and I really don’t think these are phony results.

Entrepreneurship and State Taxation: https://www.federalreserve.gov/econres/feds/files/2018003pap.pdf
We find that new firm employment is negatively—and disproportionately—affected by corporate tax rates. We find little evidence of an effect of personal and sales taxes on entrepreneurial outcomes.

https://www.nytimes.com/2017/11/26/us/politics/johnson-amendment-churches-taxes-politics.html
nobody in the comments section seems to have even considered the comparison with universities

The GOP Tax Bills Are Infrastructure Bills Too. Here’s Why.: http://www.governing.com/topics/transportation-infrastructure/gov-republican-tax-bills-impact-infrastructure.html
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september 2017 by nhaliday
Autocratic Rule and Social Capital: Evidence from Imperial China by Melanie Meng Xue, Mark Koyama :: SSRN
This paper studies how autocratic rule affects social capital. Between 1660-1788, individuals in imperial China were persecuted if they were suspected of holding subversive attitudes towards the state. A difference-in-differences approach suggests that these persecutions led to a decline of 38% in social capital, as measured by the number of charitable organizations, in each subsequent decade. Investigating the long-run effect of autocratic rule, we show that persecutions are associated with lower levels of trust, political engagement, and the under provision of local public goods. These results indicate a possible vicious cycle in which autocratic rule becomes self-reinforcing through a permanent decline in social capital.
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september 2017 by nhaliday
Can Europe Run Greece? Lessons from U.S. Fiscal Receiverships in Latin America, 1904-31 by Noel Maurer, Leticia Arroyo Abad :: SSRN
In 2012 and again in 2015, the German government proposed sending German administrators to manage Greece’s tax and privatization authorities. The idea was that shared governance would reduce corruption and root out inefficient practices. (In 2017 the Boston Globe proposed a similar arrangement for Haiti.) We test a version of shared governance using eight U.S. interventions between 1904 and 1931, under which American officials took over management of Latin American fiscal institutions. We develop a stylized model in which better monitoring by incorruptible managers does not lead to higher government revenues. Using a new panel of data on fiscal revenues and the volume and terms of trade, we find that revenue fell under receiverships. Our results hold under instrumental variables estimation and with counterfactual specifications using synthetic controls.
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september 2017 by nhaliday
Does Communist Party Membership Pay? Estimating the Economic Returns to Party Membership in the Labor Market in China
This study estimates the economic returns to Chinese Communist Party membership using complementary approaches to address the endogeneity of party membership status: propensity score matching and instrumental variable. Although the magnitudes of these estimates vary across estimators, all the estimates show positive economic returns to party membership.
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september 2017 by nhaliday
Social Animal House: The Economic and Academic Consequences of Fraternity Membership by Jack Mara, Lewis Davis, Stephen Schmidt :: SSRN
We exploit changes in the residential and social environment on campus to identify the economic and academic consequences of fraternity membership at a small Northeastern college. Our estimates suggest that these consequences are large, with fraternity membership lowering student GPA by approximately 0.25 points on the traditional four-point scale, but raising future income by approximately 36%, for those students whose decision about membership is affected by changes in the environment. These results suggest that fraternity membership causally produces large gains in social capital, which more than outweigh its negative effects on human capital for potential members. Alcohol-related behavior does not explain much of the effects of fraternity membership on either the human capital or social capital effects. These findings suggest that college administrators face significant trade-offs when crafting policies related to Greek life on campus.

- III. Methodology has details
- it's an instrumental variable method paper

Table 5: Fraternity Membership and Grades
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september 2017 by nhaliday
Stolen generations | West Hunter
Someone was quoted as saying that if you adopted an Australian Aborigine kid and raised him in England, he’d do just fine. This is a standard prediction, or maybe really an assumption, of most social scientists: people are the same everywhere. Let me put it more precisely: If you adopted a random draw of such kids just after birth, and then treated them in the same way that local native kids were treated, they’d end up with the same adult IQ, on average. And the same rate of alcoholism, and so forth. Same with any other racial group, the prediction says.

But is this actually true? The same people would say that one-day-old babies from different groups ought to act the same, and that’s certainly not true.

I would think that there was a lot of adoption of Australian Aborigines going on in Australia, back in the day. What were the results?

https://westhunt.wordpress.com/2014/03/15/stolen-generations/#comment-23715
I don’t see how you could spend a lot of time on this (aboriginal education) and not see the pattern in front of you. But people do, certainly in the US as well. Here’s a fun quote: “There is no logical reason to expect that the number of minority students in gifted programs would not be proportional to their representation in the general population. ” (p. 498) Frasier 1997
Of course this never happens, never has happened, but still it’s gotta happen.

This is secondhand, but an interesting story. There was once a graduate student in anthropology at UNM who was very interested in Australian Aboriginal education. I believe that’s what he wanted to do when he got out. He did a lot of digging into the subject, including mimeographed stuff that never got published, and much against his will came to the conclusion that Aboriginals really were different from Europeans, really did have significantly lower intelligence. It drove him nuts – he actually had to be hospitalized. Dropped out of the program.

https://westhunt.wordpress.com/2014/03/15/stolen-generations/#comment-23811
It’s easier than you think. Just threaten the members of the IRB – they generally have no honor.

The long-term effects of American Indian boarding schools: http://marginalrevolution.com/marginalrevolution/2017/09/long-term-effects-american-indian-boarding-schools.html
http://www.sciencedirect.com/science/article/pii/S0304387817300664
Combining recent reservation-level census data and school enrollment data from 1911 to 1932, I find that reservations that sent a larger share of students to off-reservation boarding schools have higher high school graduation rates, higher per capita income, lower poverty rates, a greater proportion of exclusively English speakers, and smaller family sizes. These results are supported when distance to the nearest off-reservation boarding school that subsequently closed is used as an instrument for the proportion of past boarding school students. I conclude with a discussion of the possible reasons for this link.

...

Last, the link drawn here between higher boarding school share and assimilation should not be misinterpreted as an endorsement of coercive assimilation.
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august 2017 by nhaliday
The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade
Adjustment in local labor markets is remarkably slow, with wages and labor-force participation rates remaining depressed and unemployment rates remaining elevated for at least a full decade after the China trade shock commences. Exposed workers experience greater job churning and reduced lifetime income. At the national level, employment has fallen in the US industries more exposed to import competition, as expected, but offsetting employment gains in other industries have yet to materialize.

Slicing the Pie: Quantifying the Aggregate and Distributional Effects of Trade: http://www.nber.org/papers/w23737
We find that the China shock increases average welfare but some groups experience losses as high as five times the average gain. Adjusted for plausible measures of inequality aversion, gains in social welfare are positive and only slightly lower than with the standard aggregation.

The Surprisingly Swift Decline of US Manufacturing Employment: https://www.aeaweb.org/articles?id=10.1257/aer.20131578
- Justin R. Pierce, Peter K. Schott
This paper links the sharp drop in US manufacturing employment after 2000 to a change in US trade policy that eliminated potential tariff increases on Chinese imports. Industries more exposed to the change experience greater employment loss, increased imports from China, and higher entry by US importers and foreign-owned Chinese exporters. At the plant level, shifts toward less labor-intensive production and exposure to the policy via input-output linkages also contribute to the decline in employment. Results are robust to other potential explanations of employment loss, and there is no similar reaction in the European Union, where policy did not change.

China-Like Wages Now Part Of U.S. Employment Boom: https://www.forbes.com/sites/kenrapoza/2017/08/04/china-like-wages-now-part-of-u-s-employment-boom/

U.S. Companies Were Hurt by Trade With China Too: https://www.bloomberg.com/view/articles/2016-12-12/u-s-companies-were-hurt-by-trade-with-china-too
David Autor and David Dorn are two human wrecking balls smashing the edifice of economics consensus. For decades, the one big thing economists could agree on was that free trade, on balance, was good for the U.S. economy. Now, in a series of papers with a variety of co-authors, Autor and Dorn have shown that the dramatic increase in U.S. trade with China in the 2000s was a different and far more destructive beast -- a phenomenon commonly called the China Shock.

The first of these papers showed that the China Shock left deep and lasting scars on huge swathes of the American workforce. The second demonstrated that the China Shock increased political polarization. Now, together with Gordon Hanson, Pian Shu, and Gary Pisano, the wrecking-ball duo have a third paper, showing that the China Shock decreased U.S. corporate innovation.

Importing Political Polarization?: The Electoral Consequences of Rising Trade Exposure: http://economics.mit.edu/files/11499
Trade-exposed districts with an initial majority white population or initially in Republican hands became substantially more likely to elect a conservative Republican, while trade-exposed districts with an initial majority-minority population or initially in Democratic hands became more likely to elect a liberal Democrat.

The China Shock was Matched by a China Boom: http://marginalrevolution.com/marginalrevolution/2018/01/china-shock-matched-china-boom.html
Our results fit the textbook story that job opportunities in exports make up for jobs lost in import-competing industries, or nearly so. Once we consider the export side, the negative employment effect of trade is much smaller than is implied in the previous literature. Although our analysis finds net job losses in the manufacturing sector for the US, there are remarkable job gains in services, suggesting that international trade has an impact on the labour market according to comparative advantage. The US has comparative advantages in services, so that overall trade led to higher employment through the increased demand for service jobs.
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august 2017 by nhaliday
Trust in Large Organizations
We argue that trust should be particularly important for the performance of large organizations. In a cross-section of countries, evidence on government performance, participation in civic and professional societies, importance of large firms, and the performance of social institutions more generally supports this hypothesis. Moreover, trust is lower in countries with dominant hierarchical religions, which may have deterred networks of cooperation trust hold up remarkably well on a cross-section of countries.

The Importance of Trust for Investment: Evidence from Venture Capital: http://www.nber.org/papers/w16923
We examine the effect of trust on financial investment and contracting decisions in a micro-economic environment where trust is exogenous. Using hand-collected data on European venture capital, we show that the Eurobarometer measure of trust among nations significantly affects investment decisions. This holds even after controlling for investor and company fixed effects, geographic distance, information and transaction costs. The national identity of venture capital firms' individual partners further contributes to the effect of trust. Education and work experience reduce the effect of trust but do not eliminate it. We also examine the relationship between trust and sophisticated contracts involving contingent control rights and find that, even after controlling for endogeneity, they are complements, not substitutes.

Breach of Trust in Hostile Takeovers: http://www.nber.org/papers/w2342
The paper questions the common view that share price increases of firms involved in hostile takeovers measure efficiency gains from acquisitions. Even if such gains exist, most of the increase in the combined value of the target and the acquirer is likely to come from stakeholder wealth losses, such as declines in value of subcontractors' firm-specific capital or employees' human capital. The use of event studies to gauge wealth creation in takeovers is unjustified. The paper also suggests a theory of managerial behavior, in which hiring and entrenching trustworthy managers enables shareholders to commit to upholding implicit contracts with stakeholders. Hostile takeovers are an innovation allowing shareholders to renege on such contracts ex post, against managers' will. On this view, shareholder gains are redistributions from stakeholders, and can in the long run result in deterioration of trust necessary for the functioning of the corporation.

Trust in Public Finance: http://www.nber.org/papers/w9187
Using data on trust and trustworthiness from the 1990 wave of the World Values Survey, I first investigate a model of the extent of tax cheating and the size of government that recognizes the interdependence of the two. The results reveal that tax cheating is lower in countries that exhibit more (not-government-related) trustworthiness. However, holding that constant, tax cheating becomes more acceptable as government grows. All in all, there is some weak evidence that the strong positive cross-country correlation between the size of government and tax cheating masks the fact that big government induces tax cheating while, at the same time, tax cheating constrains big government. I then add to the structural model an equation determining the level of prosperity, allowing prosperity to depend, inter alia, on the level of government and on trust in others. I find some evidence that both prosperity and government involvement are higher in more trusting societies. Moreover, holding these measures of trust constant, the association of government size with prosperity is positive until a level of government spending somewhere between 31% and 38% of GDP, after which its marginal effect is negative. Thus, although a trusting citizenry allows larger government, the tax burden this entails erodes the rule obedience taxpayers exhibit toward government.

Tax cheating among whites: http://anepigone.blogspot.com/2017/04/tax-cheating-among-whites.html
The masses still more or less assume that “against the law” is a synonym for “wrong.” It is known that the criminal law is harsh and full of anomalies and that litigation is so expensive as always to favour the rich against the poor: but there is a general feeling that the law, such as it is, will be scrupulously administered … An Englishman does not believe in his bones, as a Spanish or Italian peasant does, that the law is simply a racket.

The English People, Collins, 1947

WEIRDO societies require WEIRDOs to make them work. The less WEIRDO a society becomes, the more being a WEIRDO--characterized by high social trust, reciprocity, political compromise, generosity to those in need, isonomy, etc--switches from being an advantage to being a disadvantage. Social trust declines, reciprocity disappears, political compromise is replaced by a winner-take-all ethnic spoils system, generosity is exploited to the point that it is seen as an entitlement, and the legal system gets hijacked by racial grievance concepts like "social justice". It's a vicious circle.

http://www.presidency.ucsb.edu/ws/index.php?pid=29544
Theodore Roosevelt
Third Annual Message
December 7, 1903

The consistent policy of the National Government, so far as it has the power, is to hold in check the unscrupulous man, whether employer or employee; but to refuse to weaken individual initiative or to hamper or cramp the industrial development of the country. We recognize that this is an era of federation and combination, in which great capitalistic corporations and labor unions have become factors of tremendous importance in all industrial centers. Hearty recognition is given the far-reaching, beneficent work which has been accomplished through both corporations and unions, and the line as between different corporations, as between different unions, is drawn as it is between different individuals; that is, it is drawn on conduct, the effort being to treat both organized capital and organized labor alike; asking nothing save that the interest of each shall be brought into harmony with the interest of the general public, and that the conduct of each shall conform to the fundamental rules of obedience to law, of individual freedom, and of justice and fair dealing towards all. Whenever either corporation, labor union, or individual disregards the law or acts in a spirit of arbitrary and tyrannous interference with the rights of others, whether corporations or individuals, then where the Federal Government has jurisdiction, it will see to it that the misconduct is stopped, paying not the slightest heed to the position or power of the corporation, the union or the individual, but only to one vital fact--that is, the question whether or not the conduct of the individual or aggregate of individuals is in accordance with the law of the land. Every man must be guaranteed his liberty and his right to do as he likes with his property or his labor, so long as he does not infringe the rights of others. _No man is above the law and no man is below it; nor do we ask any man's permission when we require him to obey it. Obedience to the law is demanded as a right; not asked as a favor._
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august 2017 by nhaliday
The Determinants of Trust
Both individual experiences and community characteristics influence how much people trust each other. Using data drawn from US localities we find that the strongest factors that reduce trust are: i) a recent history of traumatic experiences, even though the passage of time reduces this effect fairly rapidly; ii) belonging to a group that historically felt discriminated against, such as minorities (black in particular) and, to a lesser extent, women; iii) being economically unsuccessful in terms of income and education; iv) living in a racially mixed community and/or in one with a high degree of income disparity. Religious beliefs and ethnic origins do not significantly affect trust. The latter result may be an indication that the American melting pot at least up to a point works, in terms of homogenizing attitudes of different cultures, even though racial cleavages leading to low trust are still quite high.

Understanding Trust: http://www.nber.org/papers/w13387
In this paper we resolve this puzzle by recognizing that trust has two components: a belief-based one and a preference based one. While the sender's behavior reflects both, we show that WVS-like measures capture mostly the belief-based component, while questions on past trusting behavior are better at capturing the preference component of trust.

MEASURING TRUST: http://scholar.harvard.edu/files/laibson/files/measuring_trust.pdf
We combine two experiments and a survey to measure trust and trustworthiness— two key components of social capital. Standard attitudinal survey questions about trust predict trustworthy behavior in our experiments much better than they predict trusting behavior. Trusting behavior in the experiments is predicted by past trusting behavior outside of the experiments. When individuals are closer socially, both trust and trustworthiness rise. Trustworthiness declines when partners are of different races or nationalities. High status individuals are able to elicit more trustworthiness in others.

What is Social Capital? The Determinants of Trust and Trustworthiness: http://www.nber.org/papers/w7216
Using a sample of Harvard undergraduates, we analyze trust and social capital in two experiments. Trusting behavior and trustworthiness rise with social connection; differences in race and nationality reduce the level of trustworthiness. Certain individuals appear to be persistently more trusting, but these people do not say they are more trusting in surveys. Survey questions about trust predict trustworthiness not trust. Only children are less trustworthy. People behave in a more trustworthy manner towards higher status individuals, and therefore status increases earnings in the experiment. As such, high status persons can be said to have more social capital.

Trust and Cheating: http://www.nber.org/papers/w18509
We find that: i) both parties to a trust exchange have implicit notions of what constitutes cheating even in a context without promises or messages; ii) these notions are not unique - the vast majority of senders would feel cheated by a negative return on their trust/investment, whereas a sizable minority defines cheating according to an equal split rule; iii) these implicit notions affect the behavior of both sides to the exchange in terms of whether to trust or cheat and to what extent. Finally, we show that individual's notions of what constitutes cheating can be traced back to two classes of values instilled by parents: cooperative and competitive. The first class of values tends to soften the notion while the other tightens it.

Nationalism and Ethnic-Based Trust: Evidence from an African Border Region: https://u.osu.edu/robinson.1012/files/2015/12/Robinson_NationalismTrust-1q3q9u1.pdf
These results offer microlevel evidence that a strong and salient national identity can diminish ethnic barriers to trust in diverse societies.

One Team, One Nation: Football, Ethnic Identity, and Conflict in Africa: http://conference.nber.org/confer//2017/SI2017/DEV/Durante_Depetris-Chauvin.pdf
Do collective experiences that prime sentiments of national unity reduce interethnic tensions and conflict? We examine this question by looking at the impact of national football teams’ victories in sub-Saharan Africa. Combining individual survey data with information on over 70 official matches played between 2000 and 2015, we find that individuals interviewed in the days after a victory of their country’s national team are less likely to report a strong sense of ethnic identity and more likely to trust people of other ethnicities than those interviewed just before. The effect is sizable and robust and is not explained by generic euphoria or optimism. Crucially, national victories do not only affect attitudes but also reduce violence. Indeed, using plausibly exogenous variation from close qualifications to the Africa Cup of Nations, we find that countries that (barely) qualified experience significantly less conflict in the following six months than countries that (barely) did not. Our findings indicate that, even where ethnic tensions have deep historical roots, patriotic shocks can reduce inter-ethnic tensions and have a tangible impact on conflict.

Why Does Ethnic Diversity Undermine Public Goods Provision?: http://www.columbia.edu/~mh2245/papers1/HHPW.pdf
We identify three families of mechanisms that link diversity to public goods provision—–what we term “preferences,” “technology,” and “strategy selection” mechanisms—–and run a series of experimental games that permit us to compare the explanatory power of distinct mechanisms within each of these three families. Results from games conducted with a random sample of 300 subjects from a slum neighborhood of Kampala, Uganda, suggest that successful public goods provision in homogenous ethnic communities can be attributed to a strategy selection mechanism: in similar settings, co-ethnics play cooperative equilibria, whereas non-co-ethnics do not. In addition, we find evidence for a technology mechanism: co-ethnics are more closely linked on social networks and thus plausibly better able to support cooperation through the threat of social sanction. We find no evidence for prominent preference mechanisms that emphasize the commonality of tastes within ethnic groups or a greater degree of altruism toward co-ethnics, and only weak evidence for technology mechanisms that focus on the impact of shared ethnicity on the productivity of teams.

does it generalize to first world?

Higher Intelligence Groups Have Higher Cooperation Rates in the Repeated Prisoner's Dilemma: https://ideas.repec.org/p/iza/izadps/dp8499.html
The initial cooperation rates are similar, it increases in the groups with higher intelligence to reach almost full cooperation, while declining in the groups with lower intelligence. The difference is produced by the cumulation of small but persistent differences in the response to past cooperation of the partner. In higher intelligence subjects, cooperation after the initial stages is immediate and becomes the default mode, defection instead requires more time. For lower intelligence groups this difference is absent. Cooperation of higher intelligence subjects is payoff sensitive, thus not automatic: in a treatment with lower continuation probability there is no difference between different intelligence groups

Why societies cooperate: https://voxeu.org/article/why-societies-cooperate
Three attributes are often suggested to generate cooperative behaviour – a good heart, good norms, and intelligence. This column reports the results of a laboratory experiment in which groups of players benefited from learning to cooperate. It finds overwhelming support for the idea that intelligence is the primary condition for a socially cohesive, cooperative society. Warm feelings towards others and good norms have only a small and transitory effect.

individual payoff, etc.:

Trust, Values and False Consensus: http://www.nber.org/papers/w18460
Trust beliefs are heterogeneous across individuals and, at the same time, persistent across generations. We investigate one mechanism yielding these dual patterns: false consensus. In the context of a trust game experiment, we show that individuals extrapolate from their own type when forming trust beliefs about the same pool of potential partners - i.e., more (less) trustworthy individuals form more optimistic (pessimistic) trust beliefs - and that this tendency continues to color trust beliefs after several rounds of game-play. Moreover, we show that one's own type/trustworthiness can be traced back to the values parents transmit to their children during their upbringing. In a second closely-related experiment, we show the economic impact of mis-calibrated trust beliefs stemming from false consensus. Miscalibrated beliefs lower participants' experimental trust game earnings by about 20 percent on average.

The Right Amount of Trust: http://www.nber.org/papers/w15344
We investigate the relationship between individual trust and individual economic performance. We find that individual income is hump-shaped in a measure of intensity of trust beliefs. Our interpretation is that highly trusting individuals tend to assume too much social risk and to be cheated more often, ultimately performing less well than those with a belief close to the mean trustworthiness of the population. On the other hand, individuals with overly pessimistic beliefs avoid being cheated, but give up profitable opportunities, therefore underperforming. The cost of either too much or too little trust is comparable to the income lost by forgoing college.

...

This framework allows us to show that income-maximizing trust typically exceeds the trust level of the average person as well as to estimate the distribution of income lost to trust mistakes. We find that although a majority of individuals has well calibrated beliefs, a non-trivial proportion of the population (10%) has trust beliefs sufficiently poorly calibrated to lower income by more than 13%.

Do Trust and … [more]
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august 2017 by nhaliday
Immigrants and Everest, Bryan Caplan | EconLog | Library of Economics and Liberty
Immigrants use less welfare than natives, holding income constant. Immigrants are far less likely to be in jail than natives, holding high school graduation constant.* On the surface, these seem like striking results. But I've heard a couple of smart people [Garett Jones] demur with an old statistics joke: "Controlling for barometric pressure, Mount Everest has the same altitude as the Dead Sea." Sometimes controls conceal the truth rather than laying it bare.
https://twitter.com/GarettJones/status/897153018503852033
https://archive.is/9k2Ww
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august 2017 by nhaliday
The “Hearts and Minds” Fallacy: Violence, Coercion, and Success in Counterinsurgency Warfare | International Security | MIT Press Journals
The U.S. prescription for success has had two main elements: to support liberalizing, democratizing reforms to reduce popular grievances; and to pursue a military strategy that carefully targets insurgents while avoiding harming civilians. An analysis of contemporaneous documents and interviews with participants in three cases held up as models of the governance approach—Malaya, Dhofar, and El Salvador—shows that counterinsurgency success is the result of a violent process of state building in which elites contest for power, popular interests matter little, and the government benefits from uses of force against civilians.

https://twitter.com/foxyforecaster/status/893049155337244672
https://archive.is/zhOXD
this is why liberal states mostly fail in counterinsurgency wars

http://www.cbsnews.com/news/commentary-why-are-we-still-in-afghanistan/

contrary study:
Nation Building Through Foreign Intervention: Evidence from Discontinuities in Military Strategies: https://academic.oup.com/qje/advance-article/doi/10.1093/qje/qjx037/4110419
This study uses discontinuities in U.S. strategies employed during the Vietnam War to estimate their causal impacts. It identifies the effects of bombing by exploiting rounding thresholds in an algorithm used to target air strikes. Bombing increased the military and political activities of the communist insurgency, weakened local governance, and reduced noncommunist civic engagement. The study also exploits a spatial discontinuity across neighboring military regions that pursued different counterinsurgency strategies. A strategy emphasizing overwhelming firepower plausibly increased insurgent attacks and worsened attitudes toward the U.S. and South Vietnamese government, relative to a more hearts-and-minds-oriented approach. JEL Codes: F35, F51, F52

anecdote:
Military Adventurer Raymond Westerling On How To Defeat An Insurgency: http://www.socialmatter.net/2018/03/12/military-adventurer-raymond-westerling-on-how-to-defeat-an-insurgency/
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august 2017 by nhaliday
Inherited Trust and Growth - American Economic Association
This paper develops a new method to uncover the causal effect of trust on economic growth by focusing on the inherited component of trust and its time variation. We show that inherited trust of descendants of US immigrants is significantly influenced by the country of origin and the timing of arrival of their forebears. We thus use the inherited trust of descendants of US immigrants as a time-varying measure of inherited trust in their country of origin. This strategy allows to identify the sizeable causal impact of inherited trust on worldwide growth during the twentieth century by controlling for country fixed effects. (JEL N11, N12, N31, N32, O47, Z13)

key data:
Table 1, Figure 1, Figure 3, Figure 4

Trust Assimilation in the United States, Bryan Caplan: http://econlog.econlib.org/archives/2017/05/trust_assimilat.html

How Durable are Social Norms? Immigrant Trust and Generosity in 132 Countries: http://www.nber.org/papers/w19855
We find that migrants tend to make social trust assessments that mainly reflect conditions in the country where they now live, but they also reveal a significant influence from their countries of origin. The latter effect is one-third as important as the effect of local conditions. We also find that the altruistic behavior of migrants, as measured by the frequency of their donations in their new countries, is strongly determined by social norms in their new countries, while also retaining some effect of the levels of generosity found in their birth countries. To show that the durability of social norms is not simply due to a failure to recognize new circumstances, we demonstrate that there are no footprint effects for immigrants’ confidence in political institutions. Taken together, these findings support the notion that social norms are deeply rooted in long-standing cultures, yet are nonetheless subject to adaptation when there are major changes in the surrounding circumstances and environment.

The autocratic roots of social distrust: http://sci-hub.tw/https://www.sciencedirect.com/science/article/pii/S0147596717300951
This paper identifies a new source of social distrust: an individual’s autocratic
origin.
 Individuals whose ancestors migrated from countries with higher autocracy
levels are less likely to trust others and to vote in presidential elections in the
U.S.
 The impact of autocratic culture on trust lasts for at least three generations
whereas the impact on voting disappears after one generation.
 The results are not driven by selection into migration or other factors such as the
GDP, education, or the strength of family ties in home countries in the U.S.
 Autocratic culture also has similar impacts on trust and voting across Europe.
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july 2017 by nhaliday
Does Management Matter? Evidence from India
We have shown that management matters, with improvements in management practices improving plant-level outcomes. One response from economists might then be to argue that poor management can at most be a short-run problem, since in the long run better managed firms should take over the market. Yet many of our firms have been in business for 20 years and more.

One reason why better run firms do not dominate the market is constraints on growth derived from limited managerial span of control. In every firm in our sample only members of the owning family have positions with major decision-making power over finance, purchasing, operations or employment. Non-family members are given only lower-level managerial positions with authority only over basic day-to-day activities. The principal reason is that family members do not trust non-family members. For example, they are concerned if they let their plant managers procure yarn they may do so at inflated rates from friends and receive kick-backs.

A key reason for this inability to decentralize is the poor rule of law in India. Even if directors found managers stealing, their ability to successfully prosecute them and recover the assets is minimal because of the inefficiency of Indian civil courts. A compounding reason for the inability to decentralize in Indian firms is bad management practices, as this means the owners cannot keep good track of materials and finance, so may not even able to identify mismanagement or theft within their firms.30

As a result of this inability to delegate, firms can expand beyond the size that can be managed by a single director only if other family members are available to share directorial duties. Thus, an important predictor of firm size was the number of male family members of the owners. In particular, the number of brothers and sons of the leading director has a correlation of 0.689 with the total employment of the firm, compared to a correlation between employment and the average management score of 0.223. In fact the best managed firm in our sample had only one (large) production plant, in large part because the owner had no brothers or sons to help run a larger organization. This matches the ideas of the Lucas (1978) span of control model, that there are diminishing returns to how much additional productivity better management technology can generate from a single manager. In the Lucas model, the limits to firm growth restrict the ability of highly productive firms to drive lower productivity ones from the market. In our Indian firms, this span of control restriction is definitely binding, so unproductive firms are able to survive because more productive firms cannot expand.

https://twitter.com/pseudoerasmus/status/885915088951095296

http://marginalrevolution.com/marginalrevolution/2017/03/india-much-entrepreneurial-society-united-states-thats-problem.html
However, when we reverse the employment statistic–only ~15% of Indians work for a firm compared to approximately 90% of US workers we see the problem. Entrepreneurship in India isn’t a choice, it’s a requirement. Indian entrepreneurship is a consequence of India’s failed economy. As a I wrote in my Cato paper with Goldschlag, less developed countries in general, not just India, have more entrepreneurs.

...

The modal size of an Indian firm is 1 employee and the mean is just over 2. The mean number of employees in a US firm is closer to 20 but even though that is ten times the Indian number it obscures the real difference. The US has many small firms but what makes it different is that it also has large firms that employ lots of people. In fact, over half of all US workers are employed by the tiny minority (0.3%) of firms with over 500 employees.

blames colonialism, idk, might have contributed

Dishonesty and Selection into Public Service: Evidence from India: https://www.aeaweb.org/articles?id=10.1257/pol.20150029
Students in India who cheat on a simple laboratory task are more likely to prefer public sector jobs. This paper shows that cheating on this task predicts corrupt behavior by civil servants, implying that it is a meaningful predictor of future corruption. Students who demonstrate pro-social preferences are less likely to prefer government jobs, while outcomes on an explicit game and attitudinal measures to measure corruption do not systematically predict job preferences. _A screening process that chooses high-ability applicants would not alter the average propensity for corruption._ The findings imply that differential selection into government may contribute, in part, to corruption.

Where Does the Good Shepherd Go? Civic Virtue and Sorting into Public Sector Employment: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0134_lhwpaper.pdf
Our study extends the understanding of the motivational basis of public sector employment by considering civic virtue in addition to altruism and risk aversion and by investigating selection and socialization. Using a largely representative, longitudinal data set of employees in Germany including 63,101 observations of 13,673 different individuals, we find that civic virtue relates positively to public sector employment beyond altruism and risk aversion. We find evidence on selection and no evidence on socialization as an explanation for this result.

http://www.economist.com/news/books-and-arts/21716019-penchant-criminality-electoral-asset-india-worlds-biggest
Sadly, this is not a book about some small, shady corner of Indian politics: 34% of the members of parliament (MPs) in the Lok Sabha (lower house) have criminal charges filed against them; and the figure is rising (see chart). Some of the raps are peccadillos, such as rioting or unlawful assembly—par for the course in India’s raucous local politics. But over a fifth of MPs are in the dock for serious crimes, often facing reams of charges for anything from theft to intimidation and worse. (Because the Indian judicial system has a backlog of 31m cases, even serious crimes can take a decade or more to try, so few politicians have been convicted.) One can walk just about the whole way from Mumbai to Kolkata without stepping foot outside a constituency whose MP isn’t facing a charge.

...

What is more surprising is that the supply of willing criminals-cum-politicians was met with eager demand from voters. Over the past three general elections, a candidate with a rap sheet of serious charges has had an 18% chance of winning his or her race, compared with 6% for a “clean” rival. Mr Vaishnav dispels the conventional wisdom that crooks win because they can get voters to focus on caste or some other sectarian allegiance, thus overlooking their criminality. If anything, the more serious the charge, the bigger the electoral boost, as politicians well know.

As so often happens in India, poverty plays a part. India is almost unique in having adopted universal suffrage while it was still very poor. The upshot has been that underdeveloped institutions fail to deliver what citizens vote for. Getting the state to perform its most basic functions—building a school, disbursing a subsidy, repaving a road—is a job that can require banging a few heads together. Sometimes literally. Who better to represent needy constituents in these tricky situations than someone who “knows how to get things done”? If the system doesn’t work for you, a thuggish MP can be a powerful ally.

http://www.bbc.com/news/magazine-36446652
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july 2017 by nhaliday
Polygenic transmission disequilibrium confirms that common and rare variation act additively to create risk for autism spectrum disorders : Nature Genetics : Nature Research
Autism spectrum disorder (ASD) risk is influenced by common polygenic and de novo variation. We aimed to clarify the influence of polygenic risk for ASD and to identify subgroups of ASD cases, including those with strongly acting de novo variants, in which polygenic risk is relevant. Using a novel approach called the polygenic transmission disequilibrium test and data from 6,454 families with a child with ASD, we show that polygenic risk for ASD, schizophrenia, and greater educational attainment is over-transmitted to children with ASD. These findings hold independent of proband IQ. We find that polygenic variation contributes additively to risk in ASD cases who carry a strongly acting de novo variant. Lastly, we show that elements of polygenic risk are independent and differ in their relationship with phenotype. These results confirm that the genetic influences on ASD are additive and suggest that they create risk through at least partially distinct etiologic pathways.

https://en.wikipedia.org/wiki/Transmission_disequilibrium_test
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july 2017 by nhaliday
Free to Leave? A Welfare Analysis of Divorce Regimes - American Economic Association
Calibrating the model to match key moments for the 1940 cohort and conditioning solely on gender, our ex ante welfare analysis finds that women fare better under mutual consent whereas men prefer a unilateral system. Conditioning as well on initial productivity (expected income), we find that the top three quintiles of men and the top two quintiles of women prefer unilateral divorce.

The impact of divorce laws on the equilibrium in the marriage market: http://www.anamreynoso.com/assets/AR_JMP_latest.pdf
Adoption of no-fault divorce -> more assortative mating + more permanent singlehood, especially among educated women

Losers and Winners: The Financial Consequences of Separation and Divorce for Men: http://www.jstor.org/stable/2657417
Contrary to conventional thinking, the majority of partnered men in the United States lose economic status when their unions dissolve. Using data from the Panel Study of Income Dynamics, this analysis shows that for most men the primary source of economic decline after union dissolution is their inability to fully compensate for the loss of their partner's income. A secondary source of economic decline is an increase in compulsory and voluntary support payments. Welfare state tax and transfer mechanisms have a much smaller overall impact on changes in men's living standards following separation. Although most men experience a decline in living standards following union dissolution, men's outcomes are heterogeneous, and the minority of men who relied on their partners for less than one-fifth of pre-dissolution income typically gain from separation and divorce. The data show a clear trend toward greater economic interdependence in American partnerships, and this trend appears to increase the proportion of men who suffer a reduced standard of living following separation.
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june 2017 by nhaliday
On the effects of inequality on economic growth | Nintil
After the discussion above, what should one think about the relationship between inequality and growth?

For starters, that the consensus of the literature points to our lack of knowledge, and the need to be very careful when studying these phenomena. As of today there is no solid consensus on the effects of inequality on growth. Tentatively, on the grounds of Neves et al.’s meta-analysis, we can conclude that the impact of inequality on developed countries is economically insignificant. This means that one can claim that inequality is good, bad, or neutral for growth as long as the effects claimed are small and one talks about developed countries. For developing countries, the relationships are more negative.

http://squid314.livejournal.com/320672.html
I recently finished The Spirit Level, subtitled "Why More Equal Societies Almost Almost Do Better", although "Five Million Different Scatter Plot Graphs Plus Associated Commentary" would also have worked. It was a pretty thorough manifesto for the best kind of leftism: the type that foregoes ideology and a priori arguments in exchange for a truckload of statistics showing that their proposed social remedies really work.

Inequality: some people know what they want to find: https://www.adamsmith.org/blog/economics/inequality-some-people-know-what-they-want-to-find

Inequality doesn’t matter: a primer: https://www.adamsmith.org/blog/inequality-doesnt-matter-a-primer

Inequality and visibility of wealth in experimental social networks: https://www.nature.com/articles/nature15392
- Akihiro Nishi, Hirokazu Shirado, David G. Rand & Nicholas A. Christakis

We show that wealth visibility facilitates the downstream consequences of initial inequality—in initially more unequal situations, wealth visibility leads to greater inequality than when wealth is invisible. This result reflects a heterogeneous response to visibility in richer versus poorer subjects. We also find that making wealth visible has adverse welfare consequences, yielding lower levels of overall cooperation, inter-connectedness, and wealth. High initial levels of economic inequality alone, however, have relatively few deleterious welfare effects.

https://twitter.com/NAChristakis/status/952315243572719617
https://archive.is/DpyAx
Our own work has shown that the *visibility* of inequality, more then the inequality per se, may be especially corrosive to the social fabric. https://www.nature.com/articles/nature15392 … I wonder if @WalterScheidel historical data sheds light on this idea? end 5/
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june 2017 by nhaliday
Econometric Modeling as Junk Science
The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics: https://www.aeaweb.org/articles?id=10.1257/jep.24.2.3

On data, experiments, incentives and highly unconvincing research – papers and hot beverages: https://papersandhotbeverages.wordpress.com/2015/10/31/on-data-experiments-incentives-and-highly-unconvincing-research/
In my view, it has just to do with the fact that academia is a peer monitored organization. In the case of (bad) data collection papers, issues related to measurement are typically boring. They are relegated to appendices, no one really has an incentive to monitor it seriously. The problem is similar in formal theory: no one really goes through the algebra in detail, but it is in principle feasible to do it, and, actually, sometimes these errors are detected. If discussing the algebra of a proof is almost unthinkable in a seminar, going into the details of data collection, measurement and aggregation is not only hard to imagine, but probably intrinsically infeasible.

Something different happens for the experimentalist people. As I was saying, I feel we have come to a point in which many papers are evaluated based on the cleverness and originality of the research design (“Using the World Cup qualifiers as an instrument for patriotism!? Woaw! how cool/crazy is that! I wish I had had that idea”). The sexiness of the identification strategy has too often become a goal in itself. When your peers monitor you paying more attention to the originality of the identification strategy than to the research question, you probably have an incentive to mine reality for ever crazier discontinuities. It is true methodologists have been criticized in the past for analogous reasons, such as being guided by the desire to increase mathematical complexity without a clear benefit. But, if you work with pure formal theory or statistical theory, your work is not meant to immediately answer question about the real world, but instead to serve other researchers in their quest. This is something that can, in general, not be said of applied CI work.

https://twitter.com/pseudoerasmus/status/662007951415238656
This post should have been entitled “Zombies who only think of their next cool IV fix”
https://twitter.com/pseudoerasmus/status/662692917069422592
massive lust for quasi-natural experiments, regression discontinuities
barely matters if the effects are not all that big
I suppose even the best of things must reach their decadent phase; methodological innov. to manias……

https://twitter.com/cblatts/status/920988530788130816
Following this "collapse of small-N social psych results" business, where do I predict econ will collapse? I see two main contenders.
One is lab studies. I dallied with these a few years ago in a Kenya lab. We ran several pilots of N=200 to figure out the best way to treat
and to measure the outcome. Every pilot gave us a different stat sig result. I could have written six papers concluding different things.
I gave up more skeptical of these lab studies than ever before. The second contender is the long run impacts literature in economic history
We should be very suspicious since we never see a paper showing that a historical event had no effect on modern day institutions or dvpt.
On the one hand I find these studies fun, fascinating, and probably true in a broad sense. They usually reinforce a widely believed history
argument with interesting data and a cute empirical strategy. But I don't think anyone believes the standard errors. There's probably a HUGE
problem of nonsignificant results staying in the file drawer. Also, there are probably data problems that don't get revealed, as we see with
the recent Piketty paper (http://marginalrevolution.com/marginalrevolution/2017/10/pikettys-data-reliable.html). So I take that literature with a vat of salt, even if I enjoy and admire the works
I used to think field experiments would show little consistency in results across place. That external validity concerns would be fatal.
In fact the results across different samples and places have proven surprisingly similar across places, and added a lot to general theory
Last, I've come to believe there is no such thing as a useful instrumental variable. The ones that actually meet the exclusion restriction
are so weird & particular that the local treatment effect is likely far different from the average treatment effect in non-transparent ways.
Most of the other IVs don't plausibly meet the e clue ion restriction. I mean, we should be concerned when the IV estimate is always 10x
larger than the OLS coefficient. This I find myself much more persuaded by simple natural experiments that use OLS, diff in diff, or
discontinuities, alongside randomized trials.

What do others think are the cliffs in economics?
PS All of these apply to political science too. Though I have a special extra target in poli sci: survey experiments! A few are good. I like
Dan Corstange's work. But it feels like 60% of dissertations these days are experiments buried in a survey instrument that measure small
changes in response. These at least have large N. But these are just uncontrolled labs, with negligible external validity in my mind.
The good ones are good. This method has its uses. But it's being way over-applied. More people have to make big and risky investments in big
natural and field experiments. Time to raise expectations and ambitions. This expectation bar, not technical ability, is the big advantage
economists have over political scientists when they compete in the same space.
(Ok. So are there any friends and colleagues I haven't insulted this morning? Let me know and I'll try my best to fix it with a screed)

HOW MUCH SHOULD WE TRUST DIFFERENCES-IN-DIFFERENCES ESTIMATES?∗: https://economics.mit.edu/files/750
Most papers that employ Differences-in-Differences estimation (DD) use many years of data and focus on serially correlated outcomes but ignore that the resulting standard errors are inconsistent. To illustrate the severity of this issue, we randomly generate placebo laws in state-level data on female wages from the Current Population Survey. For each law, we use OLS to compute the DD estimate of its “effect” as well as the standard error of this estimate. These conventional DD standard errors severely understate the standard deviation of the estimators: we find an “effect” significant at the 5 percent level for up to 45 percent of the placebo interventions. We use Monte Carlo simulations to investigate how well existing methods help solve this problem. Econometric corrections that place a specific parametric form on the time-series process do not perform well. Bootstrap (taking into account the auto-correlation of the data) works well when the number of states is large enough. Two corrections based on asymptotic approximation of the variance-covariance matrix work well for moderate numbers of states and one correction that collapses the time series information into a “pre” and “post” period and explicitly takes into account the effective sample size works well even for small numbers of states.

‘METRICS MONDAY: 2SLS–CHRONICLE OF A DEATH FORETOLD: http://marcfbellemare.com/wordpress/12733
As it turns out, Young finds that
1. Conventional tests tend to overreject the null hypothesis that the 2SLS coefficient is equal to zero.
2. 2SLS estimates are falsely declared significant one third to one half of the time, depending on the method used for bootstrapping.
3. The 99-percent confidence intervals (CIs) of those 2SLS estimates include the OLS point estimate over 90 of the time. They include the full OLS 99-percent CI over 75 percent of the time.
4. 2SLS estimates are extremely sensitive to outliers. Removing simply one outlying cluster or observation, almost half of 2SLS results become insignificant. Things get worse when removing two outlying clusters or observations, as over 60 percent of 2SLS results then become insignificant.
5. Using a Durbin-Wu-Hausman test, less than 15 percent of regressions can reject the null that OLS estimates are unbiased at the 1-percent level.
6. 2SLS has considerably higher mean squared error than OLS.
7. In one third to one half of published results, the null that the IVs are totally irrelevant cannot be rejected, and so the correlation between the endogenous variable(s) and the IVs is due to finite sample correlation between them.
8. Finally, fewer than 10 percent of 2SLS estimates reject instrument irrelevance and the absence of OLS bias at the 1-percent level using a Durbin-Wu-Hausman test. It gets much worse–fewer than 5 percent–if you add in the requirement that the 2SLS CI that excludes the OLS estimate.

Methods Matter: P-Hacking and Causal Inference in Economics*: http://ftp.iza.org/dp11796.pdf
Applying multiple methods to 13,440 hypothesis tests reported in 25 top economics journals in 2015, we show that selective publication and p-hacking is a substantial problem in research employing DID and (in particular) IV. RCT and RDD are much less problematic. Almost 25% of claims of marginally significant results in IV papers are misleading.

https://twitter.com/NoamJStein/status/1040887307568664577
Ever since I learned social science is completely fake, I've had a lot more time to do stuff that matters, like deadlifting and reading about Mediterranean haplogroups
--
Wait, so, from fakest to realest IV>DD>RCT>RDD? That totally matches my impression.
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june 2017 by nhaliday
Economic Growth in Ancient Greece | pseudoerasmus
Maybe land-and-dung expansion does not really require a fancy institutional explanation. Territory expanded, land yields rose, and people have always traded their surpluses. Why invoke “inclusive institutions”, as Ober effectively does, for something so mundane ? Perhaps the seminal cultural accomplishments of classical Greece bias some of us to look for “special” causes of the expansion.

Note, this is not an argument that political economy or “institutions” play no role in the rise and decline of economies. But in this particular case, so little seems established about the descriptive statistics, let alone the “growth accounting”, of Greek economic expansion in 800-300 BCE that it’s premature to be speculating about its institutional causes.
econotariat  pseudoE  broad-econ  commentary  books  review  economics  growth-econ  history  iron-age  mediterranean  the-classics  critique  institutions  egalitarianism-hierarchy  malthus  demographics  population  density  wealth  wealth-of-nations  political-econ  divergence  europe  the-great-west-whale  data  archaeology  measurement  scale  agriculture  econ-productivity  efficiency  article  gregory-clark  galor-like  long-short-run  medieval  nordic  technology  north-weingast-like  democracy  roots  summary  endo-exo  input-output  walter-scheidel  endogenous-exogenous  uncertainty 
june 2017 by nhaliday
EconPapers: The Effect of Migration on Terror - Made at Home or Imported from Abroad?
We find some evidence that terror is systematically imported from countries with large Muslim populations. A larger number of attacks against foreigners in the host country increases the risk of terror from foreigners there. We find that host country policies relating to integration and the rights of foreigners are key to fight terror – stricter policies that exclude foreigners already living in a country increase the risk of terror. High-skilled migrants are associated with a significantly lower risk of terror compared to low-skilled ones, while there is no significant difference between male and female migrants.
study  economics  econometrics  migration  endo-exo  terrorism  islam  MENA  gender  education  human-capital  correlation  policy  wonkish  us-them  assimilation  endogenous-exogenous 
june 2017 by nhaliday
How important was colonial trade for the rise of Europe? | Economic Growth in History
The latter view became the orthodoxy among economists and economic historians after Patrick O’Brien’s 1982 paper, which in one of many of Patrick’s celebrated phrases, claims that “”the periphery vs peripheral” for Europe. He concludes the paper by writing:

“[G]rowth, stagnation, and decay everywhere in Western Europe can be explained mainly by reference to endogenous forces. … for the economic growth of the core, the periphery was peripheral.”

This is the view that remarkable scholars such as N. Crafts, Deirdre McCloskey, or Joel Mokyr repeat today (though Crafts would argue cotton imports would have mattered in a late stage, and my reading of Mokyr is that he has softened his earlier view from the 1980s a little, specifically in the book The Enlightened Economy.) Even recently, Brad deLong has classifyied O’Brien’s 1982 position as “air tight”.

Among economists and economic historians more on the economics side, I would say that O’Brien’s paper was only one of two strong hits against the “Worlds-System” and related schools of thoughts of the 1970s, the other hit being Solow’s earlier conclusion that TFP growth (usually interpreted as technology, though there’s more to it than that) has accounted for economic growth a great deal more than capital accumulation, which is what Hobsbawm and Wallerstein, in their neo-Marxist framework, emphasize.

https://twitter.com/tcjfs/status/890034395456974848
A friend tonight, on the third world and the first world, and our relationships to the past: "They don't forget, and we don't remember."
https://twitter.com/edwest/status/872337163458932736
imo the European Intifada is being fueled by anti-Europeanism & widely taught ideas like this one discussed - Europe stole its riches

https://www.thinkpragati.com/opinion/1863/dont-blame-empire/
The British Empire was cruel, rapacious and racist. But contrary to what Shashi Tharoor writes in An Era Of Darkness, the fault for India’s miseries lies upon itself.

Indeed, the anti-Tharoor argument is arguably closer to the truth, because the British tended to use the landlord system in places where landlords were already in place, and at times when the British were relatively weak and couldn’t afford to upset tradition. Only after they became confident in their power did the British start to bypass the landlord class and tax the cultivators directly. King’s College London historian Jon Wilson (2016) writes in India Conquered, “Wherever it was implemented, raiyatwar began as a form of military rule.” Thus the system that Tharoor implicitly promotes, and which is associated with higher agricultural productivity today, arose from the very same colonialism that he blames for so many of India’s current woes. History does not always tell the parables that we wish to hear.

...

India’s share of the world economy was large in the eighteenth century for one simple reason: when the entire world was poor, India had a large share of the world’s population. India’s share fell because with the coming of the Industrial Revolution, Europe and North America saw increases of income per capita to levels never before seen in all of human history. This unprecedented growth cannot be explained by Britain’s depredations against India. Britain was not importing steam engines from India.

The big story of the Great Divergence is not that India got poorer, but that other countries got much richer. Even at the peak of Mughal wealth in 1600, the best estimates of economic historians suggest that GDP per capita was 61% higher in Great Britain. By 1750–before the battle of Plassey and the British takeover–GDP per capita in Great Britain was more than twice what it was in India (Broadberry, Custodis, and Gupta 2015). The Great Divergence has long roots.

Tharoor seems blinded by the glittering jewels of the Maharajas and the Mughals. He writes with evident satisfaction that when in 1615 the first British ambassador presented himself to the court of Emperor Jehangir in Agra, “the Englishman was a supplicant at the feet of the world’s mightiest and most opulent monarch.” True; but the Emperor’s opulence was produced on the backs of millions of poor subjects. Writing at the same time and place, the Dutch merchant Francisco Pelsaert (1626) contrasted the “great superfluity and absolute power” of the rich with “the utter subjection and poverty of the common people–poverty so great and miserable that the life of the people can be depicted…only as the home of stark want and the dwelling-place of bitter woe.” Indian rulers were rich because the empire was large and inequality was extreme.

In pre-colonial India the rulers, both Mughal and Maratha, extracted _anywhere from one-third to one half of all gross agricultural output_ and most of what was extracted was spent on opulence and the armed forces, not on improving agricultural productivity (Raychaudhuri 1982).

...

The British were awful rulers but the history of India is a long story of awful rulers (just as it is for most countries). Indeed, by Maddison’s (2007) calculations _the British extracted less from the Indian economy than did the Mughal Dynasty_. The Mughals built their palaces in India while the British built most of their palaces in Britain, but that was little comfort to the Indian peasant who paid for both. The Kohinoor diamond that graces the cover of Inglorious Empire is a telling symbol. Yes, it was stolen by the British (who stole it from the Sikhs who stole it from the Afghanis who stole it from the Mughals who stole it from one of the kings of South India). But how many Indians would have been better off if this bauble had stayed in India? Perhaps one reason why more Indians didn’t take up arms against the British was that for most of them, British rule was a case of meet the new boss, same as the old boss.

more for effect on colonies: https://pinboard.in/u:nhaliday/b:4b0128372fe9

INDIA AND THE GREAT DIVERGENCE: AN ANGLO-INDIAN COMPARISON OF GDP PER CAPITA, 1600-1871: http://eh.net/eha/wp-content/uploads/2013/11/Guptaetal.pdf
This paper provides estimates of Indian GDP constructed from the output side for the pre-1871 period, and combines them with population estimates to track changes in living standards. Indian per capita GDP declined steadily during the seventeenth and eighteenth centuries before stabilising during the nineteenth century. As British living standards increased from the mid-seventeenth century, India fell increasingly behind. Whereas in 1600, Indian per capita GDP was over 60 per cent of the British level, by 1871 it had fallen to less than 15 per cent. As well as placing the origins of the Great Divergence firmly in the early modern period, the estimates suggest a relatively prosperous India at the height of the Mughal Empire, with living standards well above bare bones subsistence.

https://twitter.com/pseudoerasmus/status/832288984009207810
but some of the Asian wage data (especialy India) have laughably small samples (see Broadberry & Gupta)

How profitable was colonialism for various European powers?: https://www.reddit.com/r/AskHistorians/comments/p1q1q/how_profitable_was_colonialism_for_various/

How did Britain benefit from colonising India? What did colonial powers gain except for a sense of power?: https://www.quora.com/How-did-Britain-benefit-from-colonising-India-What-did-colonial-powers-gain-except-for-a-sense-of-power
The EIC period was mostly profitable, though it had recurring problems with its finances. The initial voyages from Surat in 1600s were hugely successful and brought profits as high as 200%. However, the competition from the Dutch East India Company started to drive down prices, at least for spices. Investing in EIC wasn’t always a sure shot way to gains - British investors who contributed to the second East India joint stock of 1.6 million pounds between 1617 and 1632 ended up losing money.

...

An alternate view is that the revenues of EIC were very small compared to the GDP of Britain, and hardly made an impact to the overall economy. For instance, the EIC Revenue in 1800 was 7.8m pounds while the British GDP in the same period was 343m pounds, and hence EIC revenue was only 2% of the overall GDP. (I got these figures from an individual blog and haven’t verified them).

...

The British Crown period - The territory of British India Provinces had expanded greatly and therefore the tax revenues had grown in proportion. The efficient taxation system paid its own administrative expenses as well as the cost of the large British Indian Army. British salaries were lucrative - the Viceroy received £25,000 a year, and Governors £10,000 for instance besides the lavish amenities in the form of subsidized housing, utilities, rest houses, etc.

...

Indian eminent intellectual, Dadabhai Naoroji wrote how the British systematically ensured the draining of Indian economy of its wealth and his theory is famously known as ‘Drain of Wealth’ theory. In his book 'Poverty' he estimated a 200–300 million pounds loss of revenue to Britain that is not returned.

At the same time, a fair bit of money did go back into India itself to support further colonial infrastructure. Note the explosion of infrastructure (Railway lines, 100+ Cantonment towns, 60+ Hill stations, Courthouses, Universities, Colleges, Irrigation Canals, Imperial capital of New Delhi) from 1857 onward till 1930s. Of course, these infrastructure projects were not due to any altruistic motive of the British. They were intended to make their India empire more secure, comfortable, efficient, and to display their grandeur. Huge sums of money were spent in the 3 Delhi Durbars conducted in this period.

So how profitable was the British Crown period? Probably not much. Instead bureaucracy, prestige, grandeur, comfort reigned supreme for the 70,000 odd British people in India.

...

There was a realization in Britain that colonies were not particularly economically beneficial to the home economy. … [more]
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june 2017 by nhaliday
The Consequences of Radical Reform: The French Revolution
The evidence does not provide any support for several other views, most notably, that evolved institutions are inherently superior to those 'designed'; that institutions must be 'appropriate' and cannot be 'transplanted'; and that the civil code and other French institutions have adverse economic effects.
study  economics  growth-econ  history  early-modern  cliometrics  europe  gallic  institutions  acemoglu  revolution  natural-experiment  endo-exo  war  egalitarianism-hierarchy  government  polisci  political-econ  broad-econ  wealth-of-nations  rent-seeking  elite  class  conquest-empire  open-closed  north-weingast-like  endogenous-exogenous 
may 2017 by nhaliday
An Economic Analysis of the Protestant Reformation
- Ekelund, Hébert, Tollison

This paper seeks to explain the initial successes and failures of Protestantism on economic grounds. It argues that the medieval Roman Catholic Church, through doctrinal manipulation, the exclusion of rivals, and various forms of price discrimination, ultimately placed members seeking the Z good "spiritual services" on the margin of defection. These monopolistic practices encouraged entry by rival firms, some of which were aligned with civil governments. The paper hypothesizes that Protestant entry was facilitated in emergent entrepreneurial societies characterized by the decline of feudalism and relatively unstable distribution of wealth and repressed in more homogeneous, rent-seeking societies that were mostly dissipating rather than creating wealth. In these societies the Roman Church was more able to continue the practice of price discrimination. Informal tests of this proposition are conducted by considering primogeniture and urban growth as proxies for wealth stability.

Causes and Consequences of the Protestant Reformation: https://pseudoerasmus.files.wordpress.com/2017/01/becker-pfaff-rubin-2016.pdf
- Sascha O. Becker, Steven Pfaff, Jared Rubin

The Protestant Reformation is one of the defining events of the last millennium. Nearly 500 years after the Reformation, its causes and consequences have seen a renewed interest in the social sciences. Research in economics, sociology, and political science increasingly uses detailed individual-level, city-level, and regional-level data to identify drivers of the adoption of the Reformation, its diffusion pattern, and its socioeconomic consequences. We take stock of this research, pointing out what we know and what we do not know and suggesting the most promising areas for future research.

Table 1: Studies of the Supply and Demand-Side Factors of the Reformation
Table 2: Studies on the Consequences of the Reformation: Human Capital
Table 3: Studies on the Consequences of the Reformation: Work and Work Ethic
Table 4: Studies on the Consequences of the Reformation: Economic Development
Table 5: Studies on the Consequences of the Reformation: Governance
Table 6: Studies on the “Dark” Consequences of the Reformation

LUTHER AND SULEYMAN: http://www.jstor.org.sci-hub.tw/stable/40506214
- Murat Iyigun

Various historical accounts have suggested that the Ottomans' rise helped the Protestant Reformation as well as its offshoots, such as Zwinglianism, Anabaptism, and Calvinism, survive their infancy and mature. Utilizing a comprehensive data set on violent confrontations for the interval between 1401 and 1700 CE, I show that the incidence of military engagements between the Protestant Reformers and the Counter-Reformation forces between the 1520s and 1650s depended negatively on the Ottomans' military activities in Europe. Furthermore, I document that the impact of the Ottomans on Europe went beyond suppressing ecclesiastical conflicts only: at the turn of the sixteenth century, Ottoman conquests lowered the number of all newly initiated conflicts among the Europeans roughly by 25 percent, while they dampened all longer-running feuds by more than 15 percent. The Ottomans' military activities influenced the length of intra-European feuds too, with each Ottoman-European military engagement shortening the duration of intra-European conflicts by more than 50 percent. Thus, while the Protestant Reformation might have benefited from - and perhaps even capitalized on - the Ottoman advances in Europe, the latter seems to have played some role in reducing conflicts within Europe more generally.

Religious Competition and Reallocation: The Political Economy of Secularization in the Protestant Reformation: http://www.jeremiahdittmar.com/files/RRR_20170919.pdf
- Davide Cantoni, Jeremiah Dittmar, Noam Yuchtman*

Using novel microdata, we document an unintended, first-order consequence of the Protestant Reformation: a massive reallocation of resources from religious to secular purposes. To understand this process, we propose a conceptual framework in which the introduction of religious competition shifts political markets where religious authorities provide legitimacy to rulers in exchange for control over resources. Consistent with our framework, religious competition changed the balance of power between secular and religious elites: secular authorities acquired enormous amounts of wealth from monasteries closed during the Reformation, particularly in Protestant regions. This transfer of resources had important consequences. First, it shifted the allocation of upper-tail human capital. Graduates of Protestant universities increasingly took secular, especially administrative, occupations. Protestant university students increasingly studied secular subjects, especially degrees that prepared students for public sector jobs, rather than church sector-specific theology. Second, it affected the sectoral composition of fixed investment. Particularly in Protestant regions, new construction from religious toward secular purposes, especially the building of palaces and administrative buildings, which reflected the increased wealth and power of secular lords. Reallocation was not driven by pre-existing economic or cultural differences. Our findings indicate that the Reformation played an important causal role in the secularization of the West.

look at Figure 4, holy shit

History: Science and the Reformation: http://www.nature.com/nature/journal/v550/n7677/full/550454a.html?WT.mc_id=TWT_NatureNews&sf126429621=1
The scientific and religious revolutions that began 500 years ago were not causally related, but were both stimulated by printing, argues David Wootton.
https://twitter.com/whyvert/status/923940525673103360
https://archive.is/JElPv
No, the Reformation did not cause the scientific revolution. Nice brief article. 👍

No RCT = No causal claims, for or against ;)
Though I'm open to a regression discontinuity design! cc: @pseudoerasmus
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may 2017 by nhaliday
Levels or changes?: Ethnic context, immigration and the UK Independence party vote
It argues that high levels of established ethnic minorities reduce opposition to immigration and support for UKIP among White Britons. Conversely, more rapid ethnic changes increase opposition to immigration and support for UKIP. Longitudinal data demonstrates that these effects are not produced by self-selection.
study  sociology  politics  polisci  government  elections  britain  eric-kaufmann  causation  endo-exo  migration  diversity  putnam-like  populism  longitudinal  stock-flow  marginal  us-them  identity-politics  flux-stasis  wonkish  phalanges  endogenous-exogenous 
may 2017 by nhaliday
Places and Preferences: A Longitudinal Analysis of Self-Selection and Contextual Effects | British Journal of Political Science | Cambridge Core
preferences -> place, not place -> preferences (mostly)
Cosmopolitan immigration attitudes in Europe's large cities: Adaptation or selection: https://www.dropbox.com/s/lb3yrsdlhpxprfs/RahsaanMaxwellAPSACosmopolitanImmigrationCities.pdf?dl=0
The myth of London exceptionalism: https://quarterly.demos.co.uk/article/issue-5/ukip-in-london/
London is not as invulnerable to the appeal of UKIP as commonly reported, finds new research from Eric Kaufmann.

Are White British Londoners more accepting of immigration than White British elsewhere? The British Election Study (BES)’s 2015 panel survey asks whether immigration enriches or undermines cultural life. 34.7 per cent of White British outside London say immigration strongly undermines cultural life. But so do 34.4 per cent of White British Londoners. Not much difference there. 44 per cent of White Brits outside London want to leave the EU, but so do 42.3 per cent of White British Londoners. Again, not much in it.

...

Finally, when we control for a fuller range of demographic and attitudinal characteristics, as in figure 4, London and the South East emerge as significantly more likely than the rest of England and Wales to have voted UKIP in 2014, according to the BES.

Cosmopolitan cities and their country cousins – UK in a changing Europe: http://ukandeu.ac.uk/london-voted-leave-or-why-local-differences-in-populist-right-voting-are-overstated/
study  sociology  politics  polisci  ideology  elections  data  correlation  null-result  confounding  endo-exo  migration  causation  stylized-facts  selection  britain  urban  polarization  longitudinal  context  intervention  roots  piracy  pdf  class-warfare  multi  eric-kaufmann  brexit  trust  social-capital  race  demographics  org:ngo  summary  values  poll  dropbox  phalanges  geography  wonkish  analysis  variance-components  chart  populism  nationalism-globalism  org:edu  org:anglo  psychology  social-psych  org:mag  news  endogenous-exogenous  preprint  urban-rural  hari-seldon  sentiment 
may 2017 by nhaliday
Identifying the Determinants of Attitudes towards Immigrants: A Structural Cross-Country Analysis
not much of a difference by gender (seems female->more supportive in northern countries, less supportive in southern countries), biggest thing is urbanity+educational attainment

https://twitter.com/whyvert/status/899850410935975940
https://archive.is/nUJp2
Vote share for WEuro populist parties higher in regions: rural, ⇈foreigners, ⇈unemployment, AND ⇈education except in cities (surprising)
the urban educated hate the nationalist parties but the nonurban educated are prone to support them. Not all educated are alike

The success of radical right-wing parties in Western European regions – new challenging findings: http://www.tandfonline.com/doi/abs/10.1080/14782804.2016.1198691

Can Television Reduce Xenophobia? The Case of East Germany: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2932276
To examine this question, we exploit the fact that individuals in some areas of East Germany – due to their geographic location – could not receive West German television until 1989. We conjecture that individuals who received West German television were exposed more frequently to foreigners and thus have developed less xenophobia than people who were not exposed to those programs. Our results show that regions that could receive West German television were less likely to vote for right-wing parties during the national elections from 1998 to 2013. Only recently, the same regions were also more likely to vote for left-wing parties. Moreover, while counties that hosted more foreigners in 1989 were also more likely to vote for right-wing parties in most elections, we find counties that recently hosted more foreign visitors showed less xenophobia, which is in line with intergroup contact theory.

With an Open Mind: Openness to Experience Moderates the Effect of Interethnic Encounters on Support for Immigration: https://academic.oup.com/esr/article-abstract/33/5/721/4102111/With-an-Open-Mind-Openness-to-Experience-Moderates

Refugees Unwelcome? Changes in the Public Acceptance of Immigrants and Refugees in Germany in the Course of Europe’s ‘Immigration Crisis’: https://academic.oup.com/esr/article-abstract/doi/10.1093/esr/jcx071/4557564/Refugees-Unwelcome-Changes-in-the-Public
Derived from discussions making up the German immigration discourse during this time, we expect reduced acceptance especially of those immigrants who were explicitly connected to the salient events, like Muslims and the offenders of NYE. Most strikingly, we find that refugees were generally highly accepted and even more so in the second wave, whereas the acceptance of immigrants from Arab or African countries further decreased. Moreover, _female respondents’ initial preference for male immigrants_ disappeared. Contrary to our expectations, we find no changes in the acceptance of Muslims.
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may 2017 by nhaliday
Secular decline in testosterone levels - Rogue Health and Fitness
A Population-Level Decline in Serum Testosterone Levels in American Men: http://sci-hub.tw/10.1210/jc.2006-1375
Secular trends in sex hormones and fractures in men and women: http://www.eje-online.org/content/166/5/887.full.pdf
https://twitter.com/toad_spotted/status/984543033285898246
https://archive.is/dcruu
Small n and older sample, but interesting that while testosterone decreases have been large for men they’ve been even larger (in % terms) for women; wonder if this contributes to declining pregnancy and sexual frequency, rising depression.

https://www.labcorp.com/assets/11476
http://www.theamericanconservative.com/articles/sperm-killers-and-rising-male-infertility/
https://www.theguardian.com/lifeandstyle/2017/jul/25/sperm-counts-among-western-men-have-halved-in-last-40-years-study
https://www.weforum.org/agenda/2017/08/most-men-in-the-us-and-europe-could-be-infertile-by-2060
Strangelove: https://youtu.be/N1KvgtEnABY?t=67

https://www.scientificamerican.com/article/sperm-count-dropping-in-western-world/
https://news.ycombinator.com/item?id=14855796
https://news.ycombinator.com/item?id=14857588
People offering human-centric explanations like cell phones: Note also that the sperm quality of dogs has decreased 30% since 1988.

mendelian rand.:
https://www.ncbi.nlm.nih.gov/pubmed/28448539
1 SD genetically instrumented increase in BMI was associated with a 0.25 SD decrease in serum testosterone
https://twitter.com/SilverVVulpes/status/857902555489341441

Ibuprofen linked to male infertility: study: https://nypost.com/2018/01/08/ibuprofen-linked-to-male-infertility-study/
http://www.pnas.org/content/115/4/E715.full

Tucker Carlson: "Men Seem To Be Becoming Less Male": https://www.realclearpolitics.com/video/2018/03/08/tucker_carlson_men_seem_to_be_becoming_less_male.html
Carlson interviewed Dr. Jordan Peterson who blamed the "insidious" movement being driven by the "radical left" that teaches there a problem of "toxic masculinity." He said ideological policies focus on "de-emphasizing masculinity may be part of the problem."

...

Those are the numbers. They paint a very clear picture: American men are failing, in body, mind and spirit. This is a crisis. Yet our leaders pretend it’s not happening. They tell us the opposite is true: Women are victims, men are oppressors. To question that assumption is to risk punishment. Even as women far outpace men in higher education, virtually every college campus supports a women’s studies department, whose core goal is to attack male power. Our politicians and business leaders internalize and amplify that message. Men are privileged. Women are oppressed. Hire and promote and reward accordingly.

https://pinboard.in/u:nhaliday/b:bd7b0a50d741
But it also hints at an almost opposite take: average testosterone levels have been falling for decades, so at this point these businessmen would be the only “normal” (by 1950s standards) men out there, and everyone else would be unprecedently risk-averse and boring.
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may 2017 by nhaliday
Educational Romanticism & Economic Development | pseudoerasmus
https://twitter.com/GarettJones/status/852339296358940672
deleeted

https://twitter.com/GarettJones/status/943238170312929280
https://archive.is/p5hRA

Did Nations that Boosted Education Grow Faster?: http://econlog.econlib.org/archives/2012/10/did_nations_tha.html
On average, no relationship. The trendline points down slightly, but for the time being let's just call it a draw. It's a well-known fact that countries that started the 1960's with high education levels grew faster (example), but this graph is about something different. This graph shows that countries that increased their education levels did not grow faster.

Where has all the education gone?: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.1016.2704&rep=rep1&type=pdf

https://twitter.com/GarettJones/status/948052794681966593
https://archive.is/kjxqp

https://twitter.com/GarettJones/status/950952412503822337
https://archive.is/3YPic

https://twitter.com/pseudoerasmus/status/862961420065001472
http://hanushek.stanford.edu/publications/schooling-educational-achievement-and-latin-american-growth-puzzle

The Case Against Education: What's Taking So Long, Bryan Caplan: http://econlog.econlib.org/archives/2015/03/the_case_agains_9.html

The World Might Be Better Off Without College for Everyone: https://www.theatlantic.com/magazine/archive/2018/01/whats-college-good-for/546590/
Students don't seem to be getting much out of higher education.
- Bryan Caplan

College: Capital or Signal?: http://www.economicmanblog.com/2017/02/25/college-capital-or-signal/
After his review of the literature, Caplan concludes that roughly 80% of the earnings effect from college comes from signalling, with only 20% the result of skill building. Put this together with his earlier observations about the private returns to college education, along with its exploding cost, and Caplan thinks that the social returns are negative. The policy implications of this will come as very bitter medicine for friends of Bernie Sanders.

Doubting the Null Hypothesis: http://www.arnoldkling.com/blog/doubting-the-null-hypothesis/

Is higher education/college in the US more about skill-building or about signaling?: https://www.quora.com/Is-higher-education-college-in-the-US-more-about-skill-building-or-about-signaling
ballpark: 50% signaling, 30% selection, 20% addition to human capital
more signaling in art history, more human capital in engineering, more selection in philosophy

Econ Duel! Is Education Signaling or Skill Building?: http://marginalrevolution.com/marginalrevolution/2016/03/econ-duel-is-education-signaling-or-skill-building.html
Marginal Revolution University has a brand new feature, Econ Duel! Our first Econ Duel features Tyler and me debating the question, Is education more about signaling or skill building?

Against Tulip Subsidies: https://slatestarcodex.com/2015/06/06/against-tulip-subsidies/

https://www.overcomingbias.com/2018/01/read-the-case-against-education.html

https://nintil.com/2018/02/05/notes-on-the-case-against-education/

https://www.nationalreview.com/magazine/2018-02-19-0000/bryan-caplan-case-against-education-review

https://spottedtoad.wordpress.com/2018/02/12/the-case-against-education/
Most American public school kids are low-income; about half are non-white; most are fairly low skilled academically. For most American kids, the majority of the waking hours they spend not engaged with electronic media are at school; the majority of their in-person relationships are at school; the most important relationships they have with an adult who is not their parent is with their teacher. For their parents, the most important in-person source of community is also their kids’ school. Young people need adult mirrors, models, mentors, and in an earlier era these might have been provided by extended families, but in our own era this all falls upon schools.

Caplan gestures towards work and earlier labor force participation as alternatives to school for many if not all kids. And I empathize: the years that I would point to as making me who I am were ones where I was working, not studying. But they were years spent working in schools, as a teacher or assistant. If schools did not exist, is there an alternative that we genuinely believe would arise to draw young people into the life of their community?

...

It is not an accident that the state that spends the least on education is Utah, where the LDS church can take up some of the slack for schools, while next door Wyoming spends almost the most of any state at $16,000 per student. Education is now the one surviving binding principle of the society as a whole, the one black box everyone will agree to, and so while you can press for less subsidization of education by government, and for privatization of costs, as Caplan does, there’s really nothing people can substitute for it. This is partially about signaling, sure, but it’s also because outside of schools and a few religious enclaves our society is but a darkling plain beset by winds.

This doesn’t mean that we should leave Caplan’s critique on the shelf. Much of education is focused on an insane, zero-sum race for finite rewards. Much of schooling does push kids, parents, schools, and school systems towards a solution ad absurdum, where anything less than 100 percent of kids headed to a doctorate and the big coding job in the sky is a sign of failure of everyone concerned.

But let’s approach this with an eye towards the limits of the possible and the reality of diminishing returns.

https://westhunt.wordpress.com/2018/01/27/poison-ivy-halls/
https://westhunt.wordpress.com/2018/01/27/poison-ivy-halls/#comment-101293
The real reason the left would support Moander: the usual reason. because he’s an enemy.

https://westhunt.wordpress.com/2018/02/01/bright-college-days-part-i/
I have a problem in thinking about education, since my preferences and personal educational experience are atypical, so I can’t just gut it out. On the other hand, knowing that puts me ahead of a lot of people that seem convinced that all real people, including all Arab cabdrivers, think and feel just as they do.

One important fact, relevant to this review. I don’t like Caplan. I think he doesn’t understand – can’t understand – human nature, and although that sometimes confers a different and interesting perspective, it’s not a royal road to truth. Nor would I want to share a foxhole with him: I don’t trust him. So if I say that I agree with some parts of this book, you should believe me.

...

Caplan doesn’t talk about possible ways of improving knowledge acquisition and retention. Maybe he thinks that’s impossible, and he may be right, at least within a conventional universe of possibilities. That’s a bit outside of his thesis, anyhow. Me it interests.

He dismisses objections from educational psychologists who claim that studying a subject improves you in subtle ways even after you forget all of it. I too find that hard to believe. On the other hand, it looks to me as if poorly-digested fragments of information picked up in college have some effect on public policy later in life: it is no coincidence that most prominent people in public life (at a given moment) share a lot of the same ideas. People are vaguely remembering the same crap from the same sources, or related sources. It’s correlated crap, which has a much stronger effect than random crap.

These widespread new ideas are usually wrong. They come from somewhere – in part, from higher education. Along this line, Caplan thinks that college has only a weak ideological effect on students. I don’t believe he is correct. In part, this is because most people use a shifting standard: what’s liberal or conservative gets redefined over time. At any given time a population is roughly half left and half right – but the content of those labels changes a lot. There’s a shift.

https://westhunt.wordpress.com/2018/02/01/bright-college-days-part-i/#comment-101492
I put it this way, a while ago: “When you think about it, falsehoods, stupid crap, make the best group identifiers, because anyone might agree with you when you’re obviously right. Signing up to clear nonsense is a better test of group loyalty. A true friend is with you when you’re wrong. Ideally, not just wrong, but barking mad, rolling around in your own vomit wrong.”
--
You just explained the Credo quia absurdum doctrine. I always wondered if it was nonsense. It is not.
--
Someone on twitter caught it first – got all the way to “sliding down the razor blade of life”. Which I explained is now called “transitioning”

What Catholics believe: https://theweek.com/articles/781925/what-catholics-believe
We believe all of these things, fantastical as they may sound, and we believe them for what we consider good reasons, well attested by history, consistent with the most exacting standards of logic. We will profess them in this place of wrath and tears until the extraordinary event referenced above, for which men and women have hoped and prayed for nearly 2,000 years, comes to pass.

https://westhunt.wordpress.com/2018/02/05/bright-college-days-part-ii/
According to Caplan, employers are looking for conformity, conscientiousness, and intelligence. They use completion of high school, or completion of college as a sign of conformity and conscientiousness. College certainly looks as if it’s mostly signaling, and it’s hugely expensive signaling, in terms of college costs and foregone earnings.

But inserting conformity into the merit function is tricky: things become important signals… because they’re important signals. Otherwise useful actions are contraindicated because they’re “not done”. For example, test scores convey useful information. They could help show that an applicant is smart even though he attended a mediocre school – the same role they play in college admissions. But employers seldom request test scores, and although applicants may provide them, few do. Caplan says ” The word on the street… [more]
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april 2017 by nhaliday
The Causal Impact of Human Capital on R&D and Productivity: Evidence from the United States
We instrument our measures of schooling by using the variation in compulsory schooling laws and differences in mobilization rates in WWII, which we relate to the education benefits provided by the GI Bill Act (1944). This novel instrument provides a clean source of variation in the costs of attending college. Two-stage least squared regressions find no effect of the share of population with secondary schooling on outcomes such as n R&D per worker or TFP growth. On the other hand, the share of population with tertiary education has a significant effect on both R&D per worker or TFP growth.
pdf  study  economics  growth-econ  education  higher-ed  human-capital  causation  endo-exo  natural-experiment  usa  history  mostly-modern  econ-productivity  labor  econometrics  intervention  stylized-facts  world-war  supply-demand  policy  wonkish  innovation  input-output  evidence-based  endogenous-exogenous 
april 2017 by nhaliday
DOES MARRIAGE REDUCE CRIME? A COUNTERFACTUAL APPROACH TO WITHIN-INDIVIDUAL CAUSAL EFFECTS
Although marriage is associated with a plethora of adult outcomes, its causal status remains controversial in the absence of experimental evidence. We address this problem by introducing a counterfactual lifecourse approach that applies inverse probability of treatment weighting (IPTW) to yearly longitudinal data on marriage, crime, and shared covariates in a sample of 500 high-risk boys followed prospectively from adolescence to age 32. The data consist of criminal histories and death records for all 500 men plus personal interviews, using a lifehistory calendar, with a stratified subsample of 52 men followed to age 70. These data are linked to an extensive battery of individual and family background measures gathered from childhood to age 17—before entry into marriage. Applying IPTW to multiple specifications that also incorporate extensive time-varying covariates in adulthood, being married is associated with an average reduction of approximately 35 percent in the odds of crime compared to nonmarried states for the same man. These results are robust, supporting the inference that states of marriage causally inhibit crime over the life course.

Does marriage inhibit antisocial behavior?: An examination of selection vs causation via a longitudinal twin design: https://sci-hub.tw/10.1001/archgenpsychiatry.2010.159
Mean differences in antisocial behavior across marital status at age 29 years were present even at 17 and 20 years of age, suggesting a selection process. However, the within-pair effect of marriage was significant for MZ twins, such that the married twin engaged in less antisocial behavior following marriage than his unmarried co-twin. Results were equivalent to those in dizygotic twins and persisted when controlling for prior antisocial behavior.

Our findings are generally consistent with prior literature. Previous studies1-4 within the field of criminology have pointed to a causal effect of marriage on desistence from AAB. Perhaps the strongest such study found that the average reduction in crime with entry into marriage was approximately 35%.2 Our own results were very consistent with these findings. At 29 years of age, the Cohen’s d effect size for differences in AAB by marital status was 0.48, which corresponds to slightly more than a 30% reduction in AAB with marriage.

Figure 2. Adult antisocial behavior (AAB) by marital status at 29 years of age.

looks like roughly half the effect is causal
pdf  study  wonkish  sociology  criminology  crime  social-structure  social-capital  counterfactual  causation  endo-exo  longitudinal  intervention  effect-size  gender  dignity  life-history  tradition  endogenous-exogenous  multi  twin-study  biodet  behavioral-gen  piracy  selection  regularizer  data  time  age-generation  chart  branches  institutions 
april 2017 by nhaliday
Anonymous Mugwump: The Empirics of Free Speech and Realistic Idealism: Part II
1. News Media: Murdoch and the Purple Land
2. The Effects of Money and Lobbying in Politics
3. Video Games: Crash Bandicoot Shouting Fire in a Crowded Theatre
4. Porn: Having an Orgasm in a Crowded Theatre
5. Sexist Speech: Crash Bandicoot Making Rape Jokes in a Crowded Theatre
6. Race Related Speech: Hollywood, Skokie and Umugandas in Rwanda
7. Incitement, Obedience and Speech Act Theory: Eichmann to Jihadi Twitter
8. Conclusion: Epistemic Humility

...

Here is what I am seeking to show in the next few paragraphs:
1. Corporate ownership of the media does not lead to corporate-friendly media output arising from a conflict of interest.
2. The main driver of media output is consumer demand (i.e., people read what they already agree with) as the above extract indicates.
3. This could create a new negative effect of a free media: people living in a bubble where their views are reinforced by an uninformative partisan press.
4. I do not believe this bubble exists: reputational effects and consumer demand for truth rather than reinforcement of existing beliefs means that the partisan media does not, uniformly or consistently, distort the truth.

...

For clarity: my primary argument is that things like campaign contributions and lobbying don’t matter. But, in deference to how mixed the literature is, I would say that our aversion to interest groups is misguided. Whether it’s Save the Children campaigning for minimum levels of aid or Citigroup lobbying for certain legislation, we needn’t jump to accusations of corruption or cronyism. Democratic politics is about legislators listening, being persuaded in a marketplace of ideas – and it really doesn’t matter if the person putting forward that idea is Exxon Mobil or a constituent. The burden for suggesting that there is impropriety is necessarily high and I simply haven’t seen any convincing evidence that there is necessarily or mostly a link between money, lobbying, politics and impropriety.

...

[some stuff on video games, porn, sexism, and racial hate speech]

[this is pretty crazy:]
In essence, ‘learning from the peasant ideology… and the everyday propaganda during umuganda had also motivated people to see their fellow ba-Tutsi as enemies’ in the run up the genocide. When the genocide finally hit, umugandas were used more directly in the genocide:

During the genocide, umuganda did not involve planting trees but ‘clearing out the weeds’ – a phrase used by the genocidaires to mean the killing of Tutsis. Chopping up men was referred to as ‘bush clearing’ and slaughtering women and children as ‘pulling out the roots of the bad weeds’... The slogan, ‘clearing bushes and removing bad weeds’, were familiar terms used in the course of ordinary agricultural labour undertaken in umuganda.

...

One more Saturday with rainfall above 10mm corresponds to a 0.41 percentage point reduction in the civilian participation rate. Those who wish to stop curtail certain forms of hate speech might very easily rely on studies like this. But there is an even better study which they can rely on in doing so: RTLM was the radio station in Rwanda and much like the umugandas: referring to Tutsis as cockroaches and dirty.

Bowling for Fascism: Social Capital and the Rise of the Nazi Party: http://www.nber.org/papers/w19201
Towns with one standard deviation higher association density saw at least 15% faster Nazi Party entry. All types of societies – from veteran associations to animal breeders, chess clubs and choirs – positively predict NS Party entry.

White, middle-class social capital helps to incarcerate African-Americans in racially diverse states.: http://blogs.lse.ac.uk/usappblog/2017/09/22/white-middle-class-social-capital-helps-to-incarcerate-african-americans-in-racially-diverse-states/
Social capital is mostly seen as a ‘good’: bringing communities together and, in the case of criminal justice, encouraging social empathy which can lead to less harsh sentencing. But these analyses ignore racial divisions in social capital. In new research, Daniel Hawes finds that while social capital can reduce the Black-White disparity in incarceration rates in states with few African Americans, in states with greater numbers of African Americans, perceptions of racial threat can activate social capital in white communities, leading to greater targeting, profiling and arrests for minorities.
albion  analysis  essay  meta-analysis  study  summary  list  empirical  civil-liberty  media  institutions  roots  business  info-dynamics  endo-exo  religion  natural-experiment  polisci  politics  wonkish  propaganda  nl-and-so-can-you  epistemic  supply-demand  🎩  spock  nitty-gritty  history  early-modern  usa  britain  MENA  unaffiliated  scale  incentives  market-power  competition  piketty  inequality  government  elections  money  null-result  stylized-facts  polarization  distribution  data  visualization  poll  gilens-page  coalitions  foreign-policy  realpolitik  israel  neocons  iran  nuclear  managerial-state  regularizer  policy  games  crime  sex  gender  discrimination  biodet  variance-components  behavioral-gen  race  diversity  africa  stories  death  social-capital  europe  woah  unintended-consequences  h2o  community  internet  terrorism  correlation  tv  tradeoffs  optimism  intervention  faq  putnam-like  madisonian  chart  article  exit-voice  microfoundations  germanic  mostly-modern  world-war  multi  economics  fluid  cliometrics  news  org:ngo 
april 2017 by nhaliday
Terrorism and Voting: The Effect of Rocket Threat on Voting in Israeli Elections | American Political Science Review | Cambridge Core
We first show that the evolution of the rockets’ range leads to exogenous variation in the threat of terrorism. We then compare voting in national elections within and outside the rockets’ range. Our results suggest that the right-wing vote share is 2 to 6 percentage points higher in localities that are within the range—a substantively significant effect.
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april 2017 by nhaliday
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