nhaliday + hive-mind   54

Team *Decorations Until Epiphany* on Twitter: "@RoundSqrCupola maybe just C https://t.co/SFPXb3qrAE"
Remember ‘BRICs’? Now it’s just ICs.
maybe just C
Solow predicts that if 2 countries have the same TFP, then the poorer nation should grow faster. But poorer India grows more slowly than China.

Solow thinking leads one to suspect India has substantially lower TFP.

Recent growth is great news, but alas 5 years isn't the long run!

FWIW under Solow conditional convergence assumptions--historically robust--the fact that a country as poor as India grows only a few % faster than the world average is a sign they'll end up poorer than S Europe.

see his spreadsheet here: http://mason.gmu.edu/~gjonesb/SolowForecast.xlsx
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december 2017 by nhaliday
Books 2017 | West Hunter
Arabian Sands
The Aryans
The Big Show
The Camel and the Wheel
Civil War on Western Waters
Company Commander
Double-edged Secrets
The Forgotten Soldier
Genes in Conflict
Hive Mind
The horse, the wheel, and language
The Penguin Atlas of Medieval History
Habitable Planets for Man
The genetical theory of natural selection
The Rise of the Greeks
To Lose a Battle
The Jewish War
Tropical Gangsters
The Forgotten Revolution
Egil’s Saga
Time Patrol

Russo: https://westhunt.wordpress.com/2017/12/14/books-2017/#comment-98568
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december 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
A cross-country empirical test of cognitive abilities and innovation nexus - Munich Personal RePEc Archive
In this study we analyze the relationship between national cognitive abilities and innovational output using data from 124 countries of the world. By employing cross-country IQ scores traditionally used by psychological literature to represent national intelligence, and Economic Complexity Index as a novel measure of innovation, our study shows that there is a positive connection between them. We use a variety of tests to check the robustness of the nexus. Overall, our findings indicate that more intelligent nations export more sophisticated and diverse products to the world market and thus are more innovative. Therefore, developing countries should consider investing in human capital and related institutions if they are to boost innovative capabilities and move up the technology ladder in producing and exporting sophisticated and varied lines of products. This should bring them greater economic diversity which could be a right lever in mitigating negative external shocks.
study  economics  broad-econ  psychology  cog-psych  growth-econ  wealth-of-nations  innovation  pop-diff  rindermann-thompson  diversity  human-capital  hive-mind  iq  correlation  entropy-like  wealth  the-world-is-just-atoms  🎩  econ-metrics  econometrics  world  group-level  spearhead  macro  stylized-facts  behavioral-econ  biophysical-econ  microfoundations  🌞  hari-seldon 
september 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
The Rise and Fall of Cognitive Control - Behavioral Scientist
The results highlight the downsides of controlled processing. Within a population, controlled processing may—rather than ensuring undeterred progress—usher in short-sighted, irrational, and detrimental behavior, ultimately leading to population collapse. This is because the innovations produced by controlled processing benefit everyone, even those who do not act with control. Thus, by making non-controlled agents better off, these innovations erode the initial advantage of controlled behavior. This results in the demise of control and the rise of lack-of-control. In turn, this eventually leads to a return to poor decision making and the breakdown of the welfare-enhancing innovations, possibly accelerated and exacerbated by the presence of the enabling technologies themselves. Our models therefore help to explain societal cycles whereby periods of rationality and forethought are followed by plunges back into irrationality and short-sightedness.

Psychologists, neuroscientists, and economists often conceptualize decisions as arising from processes that lie along a continuum from automatic (i.e., “hardwired” or overlearned, but relatively inflexible) to controlled (less efficient and effortful, but more flexible). Control is central to human cognition, and plays a key role in our ability to modify the world to suit our needs. Given its advantages, reliance on controlled processing may seem predestined to increase within the population over time. Here, we examine whether this is so by introducing an evolutionary game theoretic model of agents that vary in their use of automatic versus controlled processes, and in which cognitive processing modifies the environment in which the agents interact. We find that, under a wide range of parameters and model assumptions, cycles emerge in which the prevalence of each type of processing in the population oscillates between 2 extremes. Rather than inexorably increasing, the emergence of control often creates conditions that lead to its own demise by allowing automaticity to also flourish, thereby undermining the progress made by the initial emergence of controlled processing. We speculate that this observation may have relevance for understanding similar cycles across human history, and may lend insight into some of the circumstances and challenges currently faced by our species.
econotariat  economics  political-econ  policy  decision-making  behavioral-econ  psychology  cog-psych  cycles  oscillation  unintended-consequences  anthropology  broad-econ  cultural-dynamics  tradeoffs  cost-benefit  rot  dysgenics  study  summary  multi  EGT  dynamical  volo-avolo  self-control  discipline  the-monster  pdf  error  rationality  info-dynamics  bounded-cognition  hive-mind  iq  intelligence  order-disorder  risk  microfoundations  science-anxiety  big-picture  hari-seldon  cybernetics 
july 2017 by nhaliday
Revealing the Economic Consequences of Group Cohesion
A comprehensive program of new experiments reveals the considerable economic impact of cohesion: higher cohesion groups are significantly more likely to achieve Pareto-superior outcomes in classic weak-link coordination games. We show that effects of cohesion are economically large, robust, and portable. We identify social preferences as a primary mechanism explaining the effects of cohesion.


Our workhorse to study group outcomes is a weak-link coordination game chosen because it captures economically interesting problems endemic to organizations and teams (e.g., Camerer and Weber (2013)). In our version of the weak-link game, inspired by Brandts and Cooper (2006), group members simultaneously choose an effort level. Payoffs to each group member then depend on their own effort and the lowest effort chosen by anyone (the “weakest link”) in the group. The game has multiple strict Pareto-ranked Nash equilibria in material payoffs. This feature makes it particularly interesting for our purposes because it combines two dimensions of group success: features of coordination (choosing the same effort level as other group members) and cooperation (groups achieving Pareto-superior Nash equilibria). We expected our weak-link game to be a “harsh” environment in the sense that most groups who play this game under anonymity and in the absence of pre-existing social relationships will collapse to the Pareto-worst equilibrium and never escape from it (Brandts and Cooper (2006), and own replication).

As we show in Section V, group cohesion is a key determinant of behavior in our experiments: low cohesion groups usually descend rapidly to minimum effort; high cohesion groups fare much better and high cohesion appears necessary (though not sufficient) for achieving Pareto-superior outcomes. Surprisingly, our measure of group cohesion is the only variable that successfully predicts cooperation success; none of more than twenty control variables (demographics and group characteristics) explain minimum effort. Further experiments show that our results are robust to the timing of oneness measurement (before or after play of the weak-link game). By benchmarking our results against the effect of monetary incentives, we also show (Section VI) that the effortenhancing effects of group cohesion are sizeable: large financial incentives are needed to achieve the levels of minimum effort expected for high cohesion groups.

In Section VII we turn to an explanation of our results. A rational choice perspective suggests three natural channels through which group cohesion could operate: it might affect some combination of group members’ social preferences, their beliefs or the form of their strategic reasoning. Considering social preferences, it is plausible to assume that members of highly cohesive groups care about one another and so place weight on each other’s earnings.1 In our weak-link game, if players do draw utility from each other’s earnings, this is tantamount to (some) sharing of earnings, which reduces strategic risk and fosters coordination on Pareto-superior equilibria.2 In relation to beliefs, highly cohesive groups may be more confident in simulating other group members’ thought processes and likely actions, perhaps because of a history of interactions in different (related) situations, which allows for implicit learning (e.g., Holyoak and Spellman (1993), Rick and Weber (2010)). Finally, group cohesion might influence the nature of strategic reasoning in more substantive ways. For instance, according to one model of strategic thinking, “team reasoning” (e.g., Sugden (2003), Bacharach (2006)), people think in terms of what would be best for the team (e.g., picking the Pareto-best equilibrium) and are inclined to do their part in implementing the group-optimal outcome. An interesting possibility is that team reasoning may be more likely the more cohesive the team is. These three channels might operate jointly and potentially reinforce each other in high cohesion groups. By contrast, low cohesion groups may have low levels of social preferences, little implicit learning to draw on from shared situations, and no team perception to facilitate team reasoning.

We probe these possibilities in two steps. We first show that subjects who report high oneness with their fellow group members are indeed more likely to expose themselves to the strategic risk of choosing high initial effort in our weak-link games; they are also less “harsh” in their responses when others’ effort levels are below their own. In highly cohesive groups, these tendencies apply across group members promoting coordination on equilibria above the Pareto-worst.

Our second step is to identify the social preferences channel as a promising route for explaining observed effects of group cohesion. We demonstrate this via additional experiments in which unrelated and anonymous group members play weak-link games but with all earnings shared equally. We interpret this manipulation as inducing a limiting form of social preferences (where all put equal weight on everyone’s material payoffs). The results show patterns of effort (opening levels and dynamics) very comparable to the top third most cohesive groups from our main experiment. Thus, social preferences provide a parsimonious candidate explanation of how group cohesion promotes Pareto-superior equilibria.

Smart groups of smart people: Evidence for IQ as the origin of collective intelligence in the performance of human groups: http://www.sciencedirect.com/science/article/pii/S0160289616303282
Group-IQ almost exclusively reflects individual cognition. (80% variance explained)
pdf  study  org:ngo  economics  growth-econ  behavioral-gen  psychology  social-psych  cohesion  putnam-like  coordination  trust  social-capital  values  tribalism  descriptive  collaboration  pareto  efficiency  anthropology  altruism  🎩  white-paper  info-econ  microfoundations  industrial-org  n-factor  broad-econ  cooperate-defect  axelrod  organizing  roots  interests  hive-mind  multi  iq  gender  contrarianism  critique  management  diversity  individualism-collectivism  objective-measure  biophysical-econ  wealth-of-nations  variance-components  null-result  attaq  intelligence  psychometrics  decision-making  GT-101  public-goodish 
june 2017 by nhaliday
Double world GDP | Open Borders: The Case
Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?: https://www.aeaweb.org/articles?id=10.1257/jep.25.3.83
The Openness-Equality Trade-Off in Global Redistribution: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2509305
Immigration, Justice, and Prosperity: http://quillette.com/2017/07/29/immigration-justice-prosperity/

Some Countries Are Much Richer Than Others. Is That Unjust?: http://quillette.com/2017/07/23/countries-much-richer-others-unjust/
But we shouldn’t automatically assume that wealth disparities across the world are unjust and that the developed world owes aid as a matter of justice. This is because the best way to make sense of the Great Divergence is that certain economic and political institutions, namely those that facilitated economic growth, arose in some countries and not others. Thus perhaps the benevolent among us should also try to encourage – by example rather than force – the development of such institutions in places where they do not exist.

An Argument Against Open Borders and Liberal Hubris: http://quillette.com/2017/08/27/argument-open-borders-liberal-hubris/
We do not have open borders but we are experiencing unprecedented demographic change. What progressives should remember is that civilisation is not a science laboratory. The consequences of failed experiments endure. That is the main virtue of gradual change; we can test new waters and not leap into their depths.

A Radical Solution to Global Income Inequality: Make the U.S. More Like Qatar: https://newrepublic.com/article/120179/how-reduce-global-income-inequality-open-immigration-policies

Why nation-states are good: https://aeon.co/essays/capitalists-need-the-nation-state-more-than-it-needs-them
The nation-state remains the best foundation for capitalism, and hyper-globalisation risks destroying it
- Dani Rodrik
Given the non-uniqueness of practices and institutions enabling capitalism, it’s not surprising that nation-states also resolve key social trade-offs differently. The world does not agree on how to balance equality against opportunity, economic security against innovation, health and environmental risks against technological innovation, stability against dynamism, economic outcomes against social and cultural values, and many other consequences of institutional choice. Developing nations have different institutional requirements than rich nations. There are, in short, strong arguments against global institutional harmonisation.
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june 2017 by nhaliday
Logic | West Hunter
All the time I hear some public figure saying that if we ban or allow X, then logically we have to ban or allow Y, even though there are obvious practical reasons for X and obvious practical reasons against Y.

No, we don’t.


compare: https://pinboard.in/u:nhaliday/b:190b299cf04a

Small Change Good, Big Change Bad?: https://www.overcomingbias.com/2018/02/small-change-good-big-change-bad.html
And on reflection it occurs to me that this is actually THE standard debate about change: some see small changes and either like them or aren’t bothered enough to advocate what it would take to reverse them, while others imagine such trends continuing long enough to result in very large and disturbing changes, and then suggest stronger responses.

For example, on increased immigration some point to the many concrete benefits immigrants now provide. Others imagine that large cumulative immigration eventually results in big changes in culture and political equilibria. On fertility, some wonder if civilization can survive in the long run with declining population, while others point out that population should rise for many decades, and few endorse the policies needed to greatly increase fertility. On genetic modification of humans, some ask why not let doctors correct obvious defects, while others imagine parents eventually editing kid genes mainly to max kid career potential. On oil some say that we should start preparing for the fact that we will eventually run out, while others say that we keep finding new reserves to replace the ones we use.


If we consider any parameter, such as typical degree of mind wandering, we are unlikely to see the current value as exactly optimal. So if we give people the benefit of the doubt to make local changes in their interest, we may accept that this may result in a recent net total change we don’t like. We may figure this is the price we pay to get other things we value more, and we we know that it can be very expensive to limit choices severely.

But even though we don’t see the current value as optimal, we also usually see the optimal value as not terribly far from the current value. So if we can imagine current changes as part of a long term trend that eventually produces very large changes, we can become more alarmed and willing to restrict current changes. The key question is: when is that a reasonable response?

First, big concerns about big long term changes only make sense if one actually cares a lot about the long run. Given the usual high rates of return on investment, it is cheap to buy influence on the long term, compared to influence on the short term. Yet few actually devote much of their income to long term investments. This raises doubts about the sincerity of expressed long term concerns.

Second, in our simplest models of the world good local choices also produce good long term choices. So if we presume good local choices, bad long term outcomes require non-simple elements, such as coordination, commitment, or myopia problems. Of course many such problems do exist. Even so, someone who claims to see a long term problem should be expected to identify specifically which such complexities they see at play. It shouldn’t be sufficient to just point to the possibility of such problems.


Fourth, many more processes and factors limit big changes, compared to small changes. For example, in software small changes are often trivial, while larger changes are nearly impossible, at least without starting again from scratch. Similarly, modest changes in mind wandering can be accomplished with minor attitude and habit changes, while extreme changes may require big brain restructuring, which is much harder because brains are complex and opaque. Recent changes in market structure may reduce the number of firms in each industry, but that doesn’t make it remotely plausible that one firm will eventually take over the entire economy. Projections of small changes into large changes need to consider the possibility of many such factors limiting large changes.

Fifth, while it can be reasonably safe to identify short term changes empirically, the longer term a forecast the more one needs to rely on theory, and the more different areas of expertise one must consider when constructing a relevant model of the situation. Beware a mere empirical projection into the long run, or a theory-based projection that relies on theories in only one area.

We should very much be open to the possibility of big bad long term changes, even in areas where we are okay with short term changes, or at least reluctant to sufficiently resist them. But we should also try to hold those who argue for the existence of such problems to relatively high standards. Their analysis should be about future times that we actually care about, and can at least roughly foresee. It should be based on our best theories of relevant subjects, and it should consider the possibility of factors that limit larger changes.

And instead of suggesting big ways to counter short term changes that might lead to long term problems, it is often better to identify markers to warn of larger problems. Then instead of acting in big ways now, we can make sure to track these warning markers, and ready ourselves to act more strongly if they appear.

Growth Is Change. So Is Death.: https://www.overcomingbias.com/2018/03/growth-is-change-so-is-death.html
I see the same pattern when people consider long term futures. People can be quite philosophical about the extinction of humanity, as long as this is due to natural causes. Every species dies; why should humans be different? And few get bothered by humans making modest small-scale short-term modifications to their own lives or environment. We are mostly okay with people using umbrellas when it rains, moving to new towns to take new jobs, etc., digging a flood ditch after our yard floods, and so on. And the net social effect of many small changes is technological progress, economic growth, new fashions, and new social attitudes, all of which we tend to endorse in the short run.

Even regarding big human-caused changes, most don’t worry if changes happen far enough in the future. Few actually care much about the future past the lives of people they’ll meet in their own life. But for changes that happen within someone’s time horizon of caring, the bigger that changes get, and the longer they are expected to last, the more that people worry. And when we get to huge changes, such as taking apart the sun, a population of trillions, lifetimes of millennia, massive genetic modification of humans, robots replacing people, a complete loss of privacy, or revolutions in social attitudes, few are blasé, and most are quite wary.

This differing attitude regarding small local changes versus large global changes makes sense for parameters that tend to revert back to a mean. Extreme values then do justify extra caution, while changes within the usual range don’t merit much notice, and can be safely left to local choice. But many parameters of our world do not mostly revert back to a mean. They drift long distances over long times, in hard to predict ways that can be reasonably modeled as a basic trend plus a random walk.

This different attitude can also make sense for parameters that have two or more very different causes of change, one which creates frequent small changes, and another which creates rare huge changes. (Or perhaps a continuum between such extremes.) If larger sudden changes tend to cause more problems, it can make sense to be more wary of them. However, for most parameters most change results from many small changes, and even then many are quite wary of this accumulating into big change.

For people with a sharp time horizon of caring, they should be more wary of long-drifting parameters the larger the changes that would happen within their horizon time. This perspective predicts that the people who are most wary of big future changes are those with the longest time horizons, and who more expect lumpier change processes. This prediction doesn’t seem to fit well with my experience, however.

Those who most worry about big long term changes usually seem okay with small short term changes. Even when they accept that most change is small and that it accumulates into big change. This seems incoherent to me. It seems like many other near versus far incoherences, like expecting things to be simpler when you are far away from them, and more complex when you are closer. You should either become more wary of short term changes, knowing that this is how big longer term change happens, or you should be more okay with big long term change, seeing that as the legitimate result of the small short term changes you accept.

The point here is the gradual shifts of in-group beliefs are both natural and no big deal. Humans are built to readily do this, and forget they do this. But ultimately it is not a worry or concern.

But radical shifts that are big, whether near or far, portend strife and conflict. Either between groups or within them. If the shift is big enough, our intuition tells us our in-group will be in a fight. Alarms go off.
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may 2017 by nhaliday
Economic Growth & Human Biodiversity | Pseudoerasmus
Good policy or good luck? Country growth performance and temporary shocks*: https://pseudoerasmus.files.wordpress.com/2015/03/easterly-kremer-pritchett-summers.pdf

Africa is urbanising without globalising: https://capx.co/africa-is-urbanising-without-globalising/
What most African cities get by on is money from natural resources. As the Brookings Institution explains here, African cities are built for consuming, not creating, wealth. The elite who capture oil or mining revenues have to live somewhere – and they concentrate their spending in cities. That is why the nightlife and restaurant scene in Kinshasa is so good, even though nothing else works. It’s the main thing the city produces. The poor flock in, hoping to feed on the scraps. Extreme inequality isn’t so much a product of the system; it is the cause of it.

Why Africa’s development model puzzles economists: https://www.economist.com/news/finance-and-economics/21726697-structural-transformation-its-economies-not-following-precedents-why

So many African countries are poor because they lack freedom, property rights, markets, and the rule of law.

People are laughing at this but it's true. Trouble is property rights and rule of law are much easier said than done.

Dentists and Freedom in Ivory Coast: https://www.cato.org/blog/dentists-freedom-ivory-coast
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may 2017 by nhaliday
There can only be one! | West Hunter
Dynasties decay.   The founder generally has a lot on the ball – tough, a natural leader, and canny campaigner – but his son is unlikely to be so exceptional.  Partly this is a manifestation of regression to the mean, and partly because his mother was probably chosen for something other than her talents as a warlord. By the fourth or fifth generation, it can be hard to believe that the useless poet on the throne is truly a member of the Golden Family.

This decay is a fundamental historical fact – an inevitable consequence of  biology and primogeniture.  It’s one of the important weaknesses of dynastic rule. The Ottomans, however, found a way around it for some centuries – the law of fratricide.  Upon the death of the Sultan, all of his sons were theoretically eligible for the succession (not just the oldest).  Since the Sultan had a harem, there were a lot of them. Whoever first seized power then had all his brothers and half-brothers executed by ritual strangulation. Incompetents didn’t win out in this struggle.

Dynastic decline through regression seems meaning you go from a guy like Stalin to an imperfect copy of Stalin that’s more like the average person (less competent but lacking in other traits that make Stalin, Stalin). Might not always totally all be “bad” for most people’s status, depending on the Great Man’s balance of competence to traits in a ruler that you don’t really want, but which helped them to seize power anyway.

Speculation, but might inbreeding be a way to hang on to more of the founder’s right stuff?

Thereby why constitutional monarchy and similar arrangements might tend to emerge in more outbreeding populations, because the successors to the big Mafia that runs the state and all the little Mafias that run everything else down from there tend to retain less ancestral competence and less ancestral desire for domination and status, so alternative arrangements are found.

list of evaluations for presidents+
"Competence, of course, is not the same thing as acting in the best interests of the common people. But it is absolutely essential for the continuation of a royal lineage or dynasty."

If everyone in a country was absolutely obsessed with the idea that the human pinkie finger was a symbol of a leader’s connection to god and was required for him to be a good ruler, this whole problem would be solved. The oldest brother could simply have his younger siblings’ pinkie fingers cut off, and let them live.

This would mean that ruling families would be much more free to have big families and expand their power even more.
The Byzantines did something similar with deposed emperors: the disfigured were ineligible for the role of God’s regent, or whatever the emperors were theologically. So, off with the nose! Justinian II ruined this humane custom by by wearing a silver nose after his restoration, à la the Lee Marvin character in Cat Ballou.

Here is my take on a solid alternative to democracy in the West: adoptive monarchy. We are acquainted with the Five Good Emperors of Rome. Before an Emperor died, he would adopt his most capable, wise and just subordinate as his son, who would become Emperor after his adoptive father died. The Roman Empire was perhaps at its most stable and prosperous point duribg this time period, and Edward Gibbon esteemed it as the high point of human history up through the time he was writing his tomes about Roman history, at least for the common Roman citizen.

If the American electorate continues to decline, ever falling into idiocy, factionalism and dementia, then I think it might be prudent to put adoptive monarchy into play, and have our monarchs rule the country in the spirit of the Constitution while temporarily holding it in suspension. The monarchs would have 40 to 80 years to pursue enlightened demographic policies, which would ensure that the American people would be ready for democratic rule again. There of course would be a Congress and courts. Both of these branches of government would at first be impotent, but would gradually regain their former power and prestige. At some point, the monarchy would be abolished, with an elected president regaining command of the executive branch, having about as much power as, say, Eisenhower did.
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may 2017 by nhaliday
O Canada! | West Hunter
Imagine a country with an average IQ of 100, some average amount of education (with some distribution), some average amount of capital per head (with some distribution of ownership of capital). Now add immigrants – 10% of the population – that are the same in every way. Same average IQ, same distribution of IQ, same average amount of capital and same distribution. They speak the same language. They have similar political traditions. In other words, it is as if the US had just peacefully annexed an imaginary country that’s a lot like Canada.

Would the original inhabitants gain economically from this merger? Strikes me that this could only happen from economies of scale – since nothing has changed other than a 10% increase in overall size. There might be some diseconomies of scale as well. I wouldn’t expect a big payoff. Except for Nawapa, of course.

Contrast this with a situation in which the extra 10% is fairly different – lower average IQ, much less education on average, don’t speak English. They don’t bring along a lot of capital. They have and bring along their native political traditions, like everyone, but theirs stink. I can easily see how those immigrants might have improved their economic lot but it’s kindof hard to see how bringing in people with low human capital benefits the original citizens more than bringing in people with considerably higher human capital. Yet it must, because adding more of the same clearly has a small effect, while adding in lower-skilled must have a big positive effect. Practically all the economists say so.

place of birth for the foreign-born population of the US, 2013:
all of Latin America, ~25 million China, ~2.5 million

Caplan’s full of shit. Prosperity through favelas? Hasn’t worked anywhere else.

The countries that look somewhat like our likely demographic destination ( considering recent trends) do worse economically than the United States, including the subgroups with high human capital. Brazil, say.

On the other hand, if you’re talking positional wealth, bringing in people with low human capital definitely works. Servants.

Sponsor An Immigrant Yourself: https://www.politico.com/magazine/story/2018/02/13/immigration-visas-economics-216968
No, really: A new kind of visa would let individual Americans—instead of corporations—reap the economic benefits of migration.

I’ve always wanted my own sla—immigrant.......
I feel like people are neglecting the fact that this was written by Eric Posner....
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april 2017 by nhaliday
Educational Romanticism & Economic Development | pseudoerasmus


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=




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/




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.

The real reason the left would support Moander: the usual reason. because he’s an enemy.

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.

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.

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 Not-So-Hot Melting Pot: The Persistence of Outcomes for Descendants of the Age of Mass Migration
Large skill gaps across different immigrant sources may remain for generations; however, convergence past the second generation is typically unknown because data rarely include grandparent’s country of birth. I overcome this limitation with new historical data and show that skill differentials across European sources strongly persisted from the first generation in 1880 to the third generation in 1940. While skill gaps across source countries remained, immigrants’ descendants achieved highly relative to longer-established white Americans; by 1940, the third generation had surpassed those with four American-born grandparents on almost every economic measure.

- lol look at Figure 6 w/ Russia/Poland as an outlier on everything, wonder why that is...
- also Norwegians do pretty badly relative to almost everyone else (low in skilled and white collar), which reminds me of http://isteve.blogspot.com/2007/11/whos-who-in-science.html
"The higher achievement index of Swedes and Danes than of Norwegians is not a statistical aberration, but a reality. This is indicated by the magnitude of the difference and by the fact that Swedes lead Norwegians by significant numbers in the great majority of those rosters of achievement in which the comparison could be made."

Long live your ancestors’ American dream: The self-selection and multigenerational mobility of American immigrants: https://drive.google.com/file/d/0B-cv6-rvQoj4eU5KUHRuMzZQY1k/view
Joakim Ruist: https://sites.google.com/site/joakimruist/
Time to end pointless debates over the causes of the persistence and act like a time series econometrician: Believe it, start forecasting.
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march 2017 by nhaliday
Is America smart enough? A Q&A with Garett Jones on IQ and the 'Hive Mind' - AEI | Pethokoukis Blog » AEIdeas
hmmm, shit:
Well, if we’re looking at the very recent trends over the last couple of decades, there is not much evidence that there’s been a bigger return to IQ than there used to be. I think there’s moderate evidence that there’s actually an increase in return to personality-type skills.

evidence: https://pinboard.in/u:nhaliday/b:d70bdc68a51c

One of my colleagues one said offhand a line that I think others have said, which is that 90% of success is staying off the Internet. And I think there’s something to this idea that the return to personality-type measures is probably a lot higher than it used to be. Agreeableness, conscientiousness, especially in certain settings. I’ve looked at the normal statistical results and they don’t find an increase in return to IQ in recent decades. But there’s a couple of studies out there that do find an increase in returns to what they call non-cognitive skills.

I think personality might be mattering more. If the robots are going to take some jobs, they’ll probably be taking a lot of brainy type jobs. But they’re going to be a little behind the times when it comes to personality. And a lot of in-person services are going to depend on personality traits.

So Google and its many spinoffs replace a lot of the need for crystallized intelligence. But the need for fluid intelligence is going to be with us for quite some time. The ability to look at a new, novel situation and figure out what’s going on here.

Some pro-IQ supporters, especially on the Internet, tend to think that there’s this some kind of cutoff where above a certain level IQ matters a lot. Below it, it doesn’t matter very much. And I just don’t find evidence of that. I think that there’s a reason why the market pays for IQ, for higher IQ across the range of the scores. It’s because it’s always good to have somebody around who can just look at an ambiguous situation and figure out what’s going on.

another neat comment:
I think the obsession with years of education really needs to end. And there should be an obsession with broad based test scores. If people don’t want to use IQ scores, that’s fine. But they should at least be looking at broad based test scores, things like the NAEPs, other test scores that the US government is quite happy to report on the Department of Education’s website. These should be the measures we look at. We should be looking a lot less at years of education.
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march 2017 by nhaliday
Was the Wealth of Nations Determined in 1000 BC?
Our most interesting, strong, and robust results are for the association of 1500 AD technology with per capita income and technology adoption today. We also find robust and significant technological persistence from 1000 BC to 0 AD, and from 0 AD to 1500 AD.

migration-adjusted ancestry predicts current economic growth and technology adoption today


Post-1500 Population Flows and the Long Run Determinants of Economic Growth and Inequality: http://www.nber.org/papers/w14448
Persistence of Fortune: Accounting for Population Movements, There Was No Post-Columbian Reversal: http://sci-hub.tw/10.1257/mac.6.3.1
Extended State History Index: https://sites.google.com/site/econolaols/extended-state-history-index
The data set extends and replaces previous versions of the State Antiquity Index (originally created by Bockstette, Chanda and Putterman, 2002). The updated data extends the previous Statehist data into the years before 1 CE, to the first states in Mesopotamia (in the fourth millennium BCE), along with filling in the years 1951 – 2000 CE that were left out of past versions of the Statehist data.
The construction of the index follows the principles developed by Bockstette et al (2002). First, the duration of state existence is established for each territory defined by modern-day country borders. Second, this duration is divided into 50-year periods. For each half-century from the first period (state emergence) onwards, the authors assign scores to reflect three dimensions of state presence, based on the following questions: 1) Is there a government above the tribal level? 2) Is this government foreign or locally based? 3) How much of the territory of the modern country was ruled by this government?

Creators: Oana Borcan, Ola Olsson & Louis Putterman

State History and Economic Development: Evidence from Six Millennia∗: https://drive.google.com/file/d/1cifUljlPpoURL7VPOQRGF5q9H6zgVFXe/view
The presence of a state is one of the most reliable historical predictors of social and economic development. In this article, we complete the coding of an extant indicator of state presence from 3500 BCE forward for almost all but the smallest countries of the world today. We outline a theoretical framework where accumulated state experience increases aggregate productivity in individual countries but where newer or relatively inexperienced states can reach a higher productivity maximum by learning from the experience of older states. The predicted pattern of comparative development is tested in an empirical analysis where we introduce our extended state history variable. Our key finding is that the current level of economic development across countries has a hump-shaped relationship with accumulated state history.

nonlinearity confirmed in this other paper:
State and Development: A Historical Study of Europe from 0 AD to 2000 AD: https://ideas.repec.org/p/hic/wpaper/219.html
After addressing conceptual and practical concerns on its construction, we present a measure of the mean duration of state rule that is aimed at resolving some of these issues. We then present our findings on the relationship between our measure and local development, drawing from observations in Europe spanning from 0 AD to 2000 AD. We find that during this period, the mean duration of state rule and the local income level have a nonlinear, inverse U-shaped relationship, controlling for a set of historical, geographic and socioeconomic factors. Regions that have historically experienced short or long duration of state rule on average lag behind in their local wealth today, while those that have experienced medium-duration state rule on average fare better.

Figure 1 shows all borders that existed during this period
Figure 4 shows quadratic fit

I wonder if U-shape is due to Ibn Kaldun-Turchin style effect on asabiya? They suggest sunk costs and ossified institutions.
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march 2017 by nhaliday
Culture and Institutions - American Economic Association
Importing people is not like importing apples: http://worthwhile.typepad.com/worthwhile_canadian_initi/2016/02/importing-people-is-not-like-importing-apples.html
"Total Factor Productivity" is not some geological feature like the Canadian shield. There has to be a reason why some countries are rich and other countries are basket cases, and unless you are lucky enough to find yourselves sitting on great reservoirs of oil that someone else will pay you to pump out of the ground, that reason seems to have something to do with social/economic institutions, and social/economic institutions seem to have something to do with people.

If you have a model which treats Total Factor Productivity as exogenous, then yes, if "resources" flow from places with low TFP to places with high TFP, as they will if the invisible hand is allowed to operate, that would be a Good Thing. But you need to stop and ask: "Hang on. I wonder why TFP is higher in some places than in others?" Which should lead you to the next question: "I wonder if TFP really would be exogenous to the sort of policy experiment I'm using my model for?". Which should lead you to the next question: "I wonder if social/economic institutions really would be exogenous to the sort of policy experiment I'm using my model for?"

How exactly will social/economic institutions change when we import people? God only knows. They might change for the better; they might change for the worse. It depends on them; it depends on us. But they almost certainly will change. And if you can't even see that question, and wonder about it, then you really are missing something that even the great unwashed uneducated rabble can see. And the great unwashed uneducated rabble are going to put even less credence on what you intellectual elites are telling them they ought to think.

Migration is complicated. Don’t pretend it’s not: https://www.spectator.co.uk/2017/09/migration-is-complicated-dont-pretend-its-not/
The concept of freedom of movement is quite different to that of the freedom of goods.

I expect you’ve already noticed it, but in case you’ve been living in a cave or an economics faculty for the past ten years, I’ll repeat it. Goods are not like people. Goods only move wherever they are needed. They don’t come laden with an attachment to a homeland or a social network. Your Bosch dishwasher doesn’t pine for its washing-machine mates back in Stuttgart. Your Ikea sofa doesn’t claim benefits. If you buy a Mercedes, you don’t suddenly find two Audis and a Volkswagen turning up on your drive claiming to be close relatives and demanding to live in your garage.
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march 2017 by nhaliday
The genetics of politics: discovery, challenges, and progress
Figure 1. Summary of relative genetic and environmental influences on political traits.

- heritability increases discontinuously on leaving home
- pretty big range of heritability for different particular traits (party identification is lowest w/ largest shared environment by far)
- overall ideology quite highly heritable
- social trust is surprisingly highly compared other measurements I've seen...
- ethnocentrism quite low (sample-dependent?)
- authoritarianism and traditionalism quite high
- voter turnout quite high

Genes, psychological traits and civic engagement: http://rstb.royalsocietypublishing.org/content/370/1683/20150015
We show an underlying genetic contribution to an index of civic engagement (0.41), as well as for the individual acts of engagement of volunteering for community or public service activities (0.33), regularly contributing to charitable causes (0.28) and voting in elections (0.27). There are closer genetic relationships between donating and the other two activities; volunteering and voting are not genetically correlated. Further, we show that most of the correlation between civic engagement and both positive emotionality and verbal IQ can be attributed to genes that affect both traits.

Are Political Orientations Genetically Transmitted?: http://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1006&context=poliscifacpub
TABLE 1. Genetic and Environmental Influences on Political Attitudes: The 28 Individual Wilson–Patterson Items

The origins of party identification and its relationship to political orientations: http://sci-hub.tw/http://www.sciencedirect.com/science/article/pii/S0191886915002470

All models showed a good overall fit (see Table 3). The data indicate that party identification is substantially heritable, with about 50% of the variation in PID attributable to additive genetic effects. Moreover, the results indicate that the non-genetic influences on party identification stem primarily from unique environmental factors rather than shared ones such as growing up in the same family. This too is not consistent with the Michigan model.

Table 3 also indicates that genetic influences explained about 50% of the variance in liberalism–conservatism. This estimate is similar to previous behavior genetic findings on political attitudes (e.g., Alford et al., 2005; Bouchard, 2004; Hatemi et al., 2014; Kandler, Bleidorn, & Riemann, 2012). The remaining variance was again due primarily to nonshared environmental influences. The latter finding indicates that the Michigan hypothesis that partisan social influences affect political orientations may have some merit, although the substantial level of heritability for this variable suggests that genetic effects also play an important role.


As Table 4 reveals, the best fitting model indicates that 100% of the genetic variance in PID is held in common with liberalism–conservatism ([aC2]/[aC2 + aPID2] = 1.00). Similarly, 73% of the environmental variation in PID is shared with liberalism–conservatism ([eC2]/[eC2 + ePID2] = .73). All told, only 13% of the total variance in PID cannot be explained by variation in liberalism–conservatism (1 [aC2 + eC2] = .13), as illustrated in Fig. 3. Since only a small proportion of the variance in PID cannot be explained by liberalism– conservatism, the findings are consistent with the hypothesis that genetic and environmental factors influence liberalism–conservatism, which in turn affects party identification. However, as discussed below, other causal scenarios cannot be ruled out.

Table 4 and Fig. 3 also show that 55% of the total variance in liberalism–conservatism cannot be accounted for by variance in PID

Fig. 3. Venn diagram mapping the common and specific variance in party
identification and liberalism–conservatism.

intuition for how you can figure out overlap of variance: look at how corr(PID, liberal-conservative) differs between MZ and DZ twin pairs, etc., fit structural equational model

p_k,i,j = r_A a_k,i,j,p + r_C c_k,i,p + r_E e_k,i,j,p (k=MZ or DZ, i=1..n_k, j=1,2, p=PID or LC value)

c_k,i,j,p = r_{C,p} c'_k,i,p + r_{C,common} c'_k,i,common (ditto)
e_k,i,j,p = r_{E,p} e'_k,i,j,p + r_{E,common} e'_k,i,j,common (ditto)

MZ twins:
a_MZ,i,j,p = r_{A,p} a'_MZ,i,p + r_{A,common} a'_MZ,i,common (i=1..n_k, j=1,2 p=PID or LC value)

DZ twins:
a_DZ,i,j,p = r_{A,p} (1/2 a'_DZ,i,p + 1/2 a'_DZ,i,j,p) + r_{A,common} (1/2 a'_DZ,i,common + 1/2 a'_DZ,i,j,common) (i=1..n_k, j=1,2 p=PID or LC value)

Gaussian distribution for the underlying a', c' and e' variables, maximum likelihood, etc.

see page 9 here: https://pinboard.in/u:nhaliday/b:70f8b5b559a9

1. calculate population means μ from data (so just numbers)
2. calculate covariance matrix Σ in terms of latent parameters r_A, r_C, etc. (so variable correlations)
3. assume observed values are Gaussian with those parameters μ, Σ
4. maximum likelihood to figure out the parameters r_A, r_C, etc.

A Genetic Basis of Economic Egalitarianism: http://sci-hub.tw/10.1007/s11211-017-0297-y
Our results show that the large portion of the variance in a four-item economic egalitarianism scale can be attributed to genetic factor. At the same time, shared environment, as a socializing factor, has no significant effect. The effect of environment seems to be fully reserved for unique personal experience. Our findings further problematize a long-standing view that social justice attitudes are dominantly determined by socialization.

published in the journal "Social Justice Research" by some Hungarians, lol

various political science findings, w/ a few behavioral genetic, focus on Trump, right-wing populism/authoritarianism, and polarization: http://www.nationalaffairs.com/blog/detail/findings-a-daily-roundup/a-bridge-too-far
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february 2017 by nhaliday
More frivolously assembled lists of books | pseudoerasmus
some of the forthcoming ones look really good, in particular, stuff still not out:
Allen, The Industrial Revolution: A Very Short Introduction
Ang, How China Escaped the Poverty Trap
Colarelli & Arvey, ed., The Biological Foundations of Organizational Behavior
O’Rourke & Williamson, ed. The Spread of Modern Industry to the Periphery since 1871
Fuller, Paper Tigers, Hidden Dragons: Firms and the Political Economy of China’s Technological Development
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february 2017 by nhaliday
Are Risk Aversion and Impatience Related to Cognitive Ability?
relevant thread (discussion of Matt Bruenig's passive income thing): https://twitter.com/GarettJones/status/815644778641571842
other study: https://www.aeaweb.org/articles?id=10.1257/089533005775196732

Our main finding is that risk aversion and impatience both vary systematically with cognitive ability. Individuals with higher cognitive ability are significantly more willing to take risks in the lottery experiments and are significantly more patient over the yearlong time horizon studied in the intertemporal choice experiment. The correlation between cognitive ability and risk aversion is present for both young and old, and for males and females, although the relationship is somewhat weaker for females and younger individuals.
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january 2017 by nhaliday
Ethnic fractionalization and growth | Dietrich Vollrath
Garett Jones did a podcast with The Economics Detective recently on the costs of ethnic diversity. It is particularly worth listening to given that racial identity has re-emerged as a salient element of politics. A quick summary - and the link above includes a nice write-up of relevant sources - would be that diversity within workplaces does not appear to improve outcomes (however those outcomes are measured).

At the same time, there is a parallel literature, touched on in the podcast, about ethnic diversity (or fractionalization, as it is termed in that literature) and economic growth. But one has to be careful drawing a bright line between the two literatures. It does not follow that the results for workplace diversity imply the results regarding economic growth. And this is because the growth results, to the extent that you believe they are robust, all operate through political systems.

So here let me walk through some of the core empirical relationships that have been found regarding ethnic fractionalization and economic growth, and then talk about why you need to take care with over-interpreting them. This is not a thorough literature review, and I realize there are other papers in the same vein. What I’m after is characterizing the essential results.


- objection about sensitivity of measure to definition of clusters seems dumb to me (point is to fix definitions than compare different polities. as long as direction and strength of correlation is fairly robust to changes in clustering, this is a stupid critique)
- also, could probably define a less arbitrary notion of fractionalization (w/o fixed clustering or # of clusters) if using points in a metric/vector/euclidean space (eg, genomes)
- eg, A Generalized Index of Ethno-Linguistic Fractionalization: http://www-3.unipv.it/webdept/prin/workpv02.pdf
So like -E_{A, B ~ X} d(A, B). Or maybe -E_{A, B ~ X} f(d(A, B)) for f an increasing function (in particular, f(x) = x^2).

Note that E ||A - B|| = Θ(E ||E[A] - A||), and E ||A - B||^2 = 2Var A,
for A, B ~ X, so this is just quantifying deviation from mean for Euclidean spaces.

In the case that you have a bunch of difference clusters w/ centers equidistant (so n+1 in R^n), measures p_i, and internal variances σ_i^2, you get E ||A - B||^2 = -2∑_i p_i^2σ_i^2 - ∑_{i≠j} p_ip_j(1 + σ_i^2 + σ_j^2) = -2∑_i p_i^2σ_i^2 - ∑_{i≠j} p_ip_j(1 + σ_i^2 + σ_j^2) = -∑_i p_i^2(1 + 2σ_i^2) - ∑_i 2p_i(1-p_i)σ_i^2
(inter-center distance scaled to 1 wlog).
(in general, if you allow _approximate_ equidistance, you can pack in exp(O(n)) clusters via JL lemma)
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december 2016 by nhaliday
Tocqueville on Mexico | Marginal Restoration
The Constitution of the United States resembles those beautiful creations of human industry which insure wealth and renown to their inventors, but which are profitless in other hands. This truth is exemplified by the condition of Mexico at the present time. The Mexicans were desirous of establishing a federal system, and they took the Federal Constitution of their neighbors, the Anglo-Americans, as their model, and copied it entirely. But although they had borrowed the letter of the law, they could not introduce the spirit and the sense which give it life. They were involved in ceaseless embarrassments by the mechanism of their double government; the sovereignty of the States and that of the Union perpetually exceeded their respective privileges, and came into collision; and to the present day Mexico is alternately the victim of anarchy and the slave of military despotism. … To the south, the Union has a point of contact with the empire of Mexico; and it is thence that serious hostilities may one day be expected to arise. But for a long while to come, the uncivilized state of the Mexican people, the depravity of their morals, and their extreme poverty, will prevent that country from ranking high amongst nations.


Influences from the United States on the Mexican Constitution of 1824: http://sci-hub.tw/http://www.jstor.org/stable/40167747

Beyond the indirect influence of Americans on the shaping of the Mexican constitution was the fact that its draftsmen made extensive adaptations from the American instrument of 1787. In some parts theConstitution of 1824 was almost a transcript of its Philadelphia prototype, but viewed in the whole it was not a slavish copy. Much substance and many particular provisions were taken from the liberal Spanish Constitution of 1812.37 Although the Mexican lawmakers may have reposed a naive faith in the American system, they certainly altered the borrowed provisions to fit the peculiar situation in their own country. A comparison of the two documents will demonstrate this.

In certain broad aspects the two constitutions were strikingly similar.38 The basic principle of a confederation of semi-sovereign states into a single political entity - with a balance of power between executive, legislative, and judicial departments - was the same in both Moreover, each charter expressed the same general aspirations toward liberalism in providing for the advancement of education and science the establishment of patents and copyrights, the freedom of the press, and the abolition of such abuses in the administration of justice as torture, confiscation of property, ex post facto laws, search and seizure without a warrant, conviction without proper legal procedure, and imprisonment on mere suspicion. The Mexican constitution, however, did not guarantee the peculiarly Anglo-American institution of trial by jury.

Mar 6, 1882, Sen James George:

If it were true (which I deny) that this bill is in conflict with the logic of the political theories in regard to the rights of mankind, which have heretofore prevailed in this country, that is no insuperable objection to its passage. I do not deny that every measure should be weighed and considered in the light of accepted and recognized principles, but I do deny that every measure, however necessary to the welfare and the happiness of the people of the United States, however accordant to the teachings of experience and history, should be condemned because it conflicts with the theories of a speculative and Utopian scheme for the administration of the affairs of this world.

Our Government has attained its present astonishing grandeur and vigor because it is the result of the growth and development of Anglo-Saxon ideas, put into practical operation by Anglo-Saxon common sense. It has not grown according to a rule prescribed by an inexorable logic, reasoning from premises which assumed an ideal perfection in human nature and attainable in human institutions. Our Constitution is the work of men, intended for the government of men, not of angels or demi-gods. It recognizes human frailties and human passions, and seeks no unattainable perfection. It was made by the American people for themselves and their posterity, not for the human race. It was ordained by the American people for their own happiness and their own welfare, and the welfare of such others as they should choose of their own free will to admit to American citizenship. That our institutions are stable; that they attain the ends of good government-security to life, liberty, and property, the progress and happiness of the American people; that they can stand any strain, however great, occasioned by unlocked-for and calamitous emergencies, is because they were evolved and were modified as circumstances demanded, and were not the result of the a priori reasonings of political theorists."

But even more striking than the similarities were the differences. The most significant of these were in the provisions that defined church-state relations, and in those that outlined the powers of the president. A foundation-stone of the American system was the guarantee of freedom of religious thought and worship. Although the United States Constitution contained no expression of this principle, the First Amendment in 1 79 1 specified that Congress could make no law respecting "the establishment of religion" or the prohibition of worship. In direct contrast was Article III of the Mexican Constitution, which read: "The religion of the Mexican Nation is, and shall be perpetually, the Apostolic Roman Catholic. The Nation protects it by wise and just laws, and prohibits the exercise of any other." Purity of religion had been one of the tenets of the Plan of Iguala in 1821, and this fact rendered it difficult if not impossible to omit such a provision in the Constitution of 1824.

Because they had experienced the evils of a weak central authority under the Articles of Confederation, the founding fathers of 1787 invested the office of president with strong powers. Exactly the reverse was true in Mexico in 1824. The Mexican framers had before them the example of the dictatorial rule of Iturbide, and consequently they hedged the executive office with restrictions so that the incumbent could not legally exercise extreme power. As in the American system, the Mexican president would serve four years; but unlike his northern counterpart he could neither succeed himself nor again hold the office until four years had elapsed. He was designated commander-in-chief of the national forces, but could not command in person without the consent of the federal legislature. His "regulations, decrees, and orders" were not effective until signed by the secretary of the department to be governed by them, and he had no appointive power over the courts. The judges of the Supreme Court of Mexico were to be elected by the majority vote of the state legislatures.

related: https://pinboard.in/u:nhaliday/b:f6ee8773e981
(Greg mentioned common law in one interview)

it's not even a hypothetical: newly independent Latin Americans in the 19th century copied the US constitution, sometimes word for word. didn't work, obviously

The word "Institutions" has become a form of stopthink.
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december 2016 by nhaliday
Charles Darwin on South America | Marginal Restoration
We met, during our descent, very few vessels. One of the best gifts of nature seems here wilfully thrown away, in so grand a channel of communication being left unoccupied. A river in which ships might navigate from a temperate country, as surprisingly abundant in certain productions as destitute of others, to another possessing a tropical climate, and a soil which, according to the best of judges, M. Bonpland, is perhaps unequalled in fertility, in any part of the world. How different would have been the aspect of this river, if English colonists had by good fortune first sailed up the Plata! What noble towns would now have occupied its shores! Till the death of Francia, the Dictator of Paraguay, these two countries must remain distinct, as if placed on opposite sides of the globe. And when the old, bloody-minded tyrant is gone to his long account, Paraguay will be torn by revolutions, violent in proportion to the previous unnatural calm. That country will have to learn, like every other South American state, that a republic cannot succeed, till it contains a certain body of men imbued with the principles of justice and honour.
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december 2016 by nhaliday
How Would a Billion Immigrants Change the American Polity? | Open Borders: The Case
In short, I think the most wild-eyed predictions of the open borders optimists will come true, and to spare, but I think a lot of the forebodings of the grimmest open border pessimists will also prove more than justified.

All these forecasts are so tentative that I’m embarrassed to write them down at all, but they are necessary to help readers to understand what I mean when I doubt that the American polity can endure and flourish under open borders. It’s not that I’d expect a complete civilizational collapse, or a revolution. On the contrary, I’d expect superficial continuity. But an open-borders America of a billion people would, in substance, be as different a polity from the polity that the United States of America is today, as the Roman Empire of the 2nd century AD was from the Roman Republic of the 3rd century BC. At the end of this post, I’ll write a bit about whether the end of the American polity as we know it should be regretted or welcomed. But first, would billions really migrate under open borders?

- praetorian guard, latifundia
- non-democratic institutions
- total freedom of association, gated communities
- anti-egalitarian

- some history of Britain and US
- interesting, vituperative take on constitutional law:
I’m not so fond of democracy that my loyalty to a regime would depend very greatly on its democratic character, but I am very, very fond of telling the truth, and I can have no respect for, and no loyalty to, judges who, in decreeing gay marriage, pretend that they’re interpreting the Constitution. Modern constitutional law is a lot like the Catholic Church’s theology of indulgences in the 15th and early 16th centuries. It makes very little sense, and every critical thinker more or less feels that it’s a disgraceful travesty, but people are afraid to challenge it as aggressively as reason demands, because it underpins the order of society. Reams and libraries are dedicated to rationalizing it, precisely because it’s rationally indefensible, yet is a crucial currency of power. And yes, I’d like to see modern constitutional law immolated in a kind of Lutheran Reformation, and would gladly pay a high price in chaos to see the dragon slain. Thanks to my low opinion of the US constitutional regime as it currently exists is one reason, I can contemplate with very little distress the immigration of a billion or so people from all over the world, unschooled in the peculiar mythology of early 21st-century American democracy and its ever-more-irrational cult of equality.

cf: http://unqualified-reservations.blogspot.com/2009/02/gentle-introduction-to-unqualified.html

the things he doesn't take into account:
- social cohesion/trust, especially for war
- crime/invasion (sort of)
- American South-style stagnation of tech and productivity improvements in face of cheap labor

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december 2016 by nhaliday
IQ and National Productivity
National IQ and National Productivity:
The Hive Mind Across Asia: http://mason.gmu.edu/~gjonesb/JonesADR.pdf
Human Capital and National Institutional Quality: Are TIMSS, PISA, and National Average IQ Robust Predictors?: https://www.econstor.eu/bitstream/10419/102105/1/cesifo_wp4790.pdf
This will allow us to give preliminary tests of three different hypotheses about the link between cognitive skill and institutional outcomes: The weakest link theory, the median voter theory, and the smart fraction theory.

Table 3: Regression results with standardized beta coefficients. Dependent variable: Overall IPR Index. OLS with classical standard errors. IQ scores.

upper tail:
Table 4: Regression results with standardized beta coefficients. Dependent variable: Overall IPR Index. OLS with classical standard errors. CA scores.
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december 2016 by nhaliday
The intelligent inheriting the earth | EVOLVING ECONOMICS
Will the intelligent inherit the earth? IQ and time preference in the global economy: http://mason.gmu.edu/~gjonesb/IITE.pdf
IQ in the Utility Function: Cognitive skills, time preference, and cross-country differences in savings rates: http://mason.gmu.edu/~gjonesb/IQsavings.pdf

"Thus, all countries except the most patient have negative net worth and negative holdings of net foreign assets: the most patient country holds title to all capital flows from the less patient. Consumption per unit of effective labor approaches zero (kept from zero consumption only by the Inada condition) because income flows are devoted to debt repayment. Indeed, in steady state all but the most patient country have savings rates near 100%—but these savings are mere debt repayments to the most patient country. In this steady state, the most patient country (or more realistically, countries) would continue to consume a non-negligible amount and would have the lowest savings rate(s) in the world."

China’s Creditor Imperialism: https://www.project-syndicate.org/commentary/china-sri-lanka-hambantota-port-debt-by-brahma-chellaney-2017-12
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november 2016 by nhaliday
Do Immigrants Import Their Economic Destiny? - Evonomics
How do immigrants change the countries they move to? Immigration has become a big political issue in the U.S., the UK, Germany, and beyond, and experts and pundits alike have tried answering this question. At least among economists, almost all the debate has focused on the short run, and most of that has focused on lower-skilled immigrants. The overall answer is fairly clear: low-skilled immigrants don’t have a major effect on the rest of the economy one way or the other. That means that in the short run, the most important effect of low-skilled immigration is that it helps low-skilled migrants themselves.

But what happens in the very long run? As immigrants shape the culture of their new homelands, will they import more than just new ethnic cuisines? Will they also import attitudes and policies that wound the golden goose of first-world prosperity? Ultimately, will migrants make the countries they move to a lot like the countries they came from?

This is one of the great policy questions in our new age of mass migration, and it’s related to one of the great questions of social science: Why do some countries have relatively liberal, pro-market institutions while others are plagued by corruption, statism, and incompetence? Three lines of research point the way to a substantial answer:

- The Deep Roots literature on how ancestry predicts modern economic development,
- The Attitude Migration literature, which shows that migrants tend to bring a lot of their worldview with them when they move from one country to another,
- The New Voters-New Policies literature, which shows that expanding the franchise to new voters really does change the nature of government.

Together, these three data-driven literatures suggest that if you want to predict how a nation’s economic rules and norms are likely to change over the next few decades, you’ll want to keep an eye on where that country’s recent immigrants hail from.
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september 2016 by nhaliday
Overcoming Bias : Two Kinds Of Status
prestige and dominance

More here. I was skeptical at first, but now am convinced: humans see two kinds of status, and approve of prestige-status much more than domination-status. I’ll have much more to say about this in the coming days, but it is far from clear to me that prestige-status is as much better than domination-status as people seem to think. Efforts to achieve prestige-status also have serious negative side-effects.

Two Ways to the Top: Evidence That Dominance and Prestige Are Distinct Yet Viable Avenues to Social Rank and Influence: https://henrich.fas.harvard.edu/files/henrich/files/cheng_et_al_2013.pdf
Dominance (the use of force and intimidation to induce fear) and Prestige (the sharing of expertise or know-how to gain respect)


According to the model, Dominance initially arose in evolutionary history as a result of agonistic contests for material resources and mates that were common among nonhuman species, but continues to exist in contemporary human societies, largely in the form of psychological intimidation, coercion, and wielded control over costs and benefits (e.g., access to resources, mates, and well-being). In both humans and nonhumans, Dominance hierarchies are thought to emerge to help maintain patterns of submission directed from subordinates to Dominants, thereby minimizing agonistic battles and incurred costs.

In contrast, Prestige is likely unique to humans, because it is thought to have emerged from selection pressures to preferentially attend to and acquire cultural knowledge from highly skilled or successful others, a capacity considered to be less developed in other animals (Boyd & Richerson, 1985; Laland & Galef, 2009). In this view, social learning (i.e., copying others) evolved in humans as a low-cost fitness-maximizing, information-gathering mechanism (Boyd & Richerson, 1985). Once it became adaptive to copy skilled others, a preference for social models with better than average information would have emerged. This would promote competition for access to the highest quality models, and deference toward these models in exchange for copying and learning opportunities. Consequently, selection likely favored Prestige differentiation, with individuals possessing high-quality information or skills elevated to the top of the hierarchy. Meanwhile, other individuals may reach the highest ranks of their group’s hierarchy by wielding threat of force, regardless of the quality of their knowledge or skills. Thus, Dominance and Prestige can be thought of as coexisting avenues to attaining rank and influence within social groups, despite being underpinned by distinct motivations and behavioral patterns, and resulting in distinct patterns of imitation and deference from subordinates.

Importantly, both Dominance and Prestige are best conceptualized as cognitive and behavioral strategies (i.e., suites of subjective feelings, cognitions, motivations, and behavioral patterns that together produce certain outcomes) deployed in certain situations, and can be used (with more or less success) by any individual within a group. They are not types of individuals, or even, necessarily, traits within individuals. Instead, we assume that all situated dyadic relationships contain differential degrees of both Dominance and Prestige, such that each person is simultaneously Dominant and Prestigious to some extent, to some other individual. Thus, it is possible that a high degree of Dominance and a high degree of Prestige may be found within the same individual, and may depend on who is doing the judging. For example, by controlling students’ access to rewards and punishments, school teachers may exert Dominance in their relationships with some students, but simultaneously enjoy Prestige with others, if they are respected and deferred to for their competence and wisdom. Indeed, previous studies have shown that based on both self- and peer ratings, Dominance and Prestige are largely independent (mean r = -.03; Cheng et al., 2010).

Status Hypocrisy: https://www.overcomingbias.com/2017/01/status-hypocrisy.html
Today we tend to say that our leaders have prestige, while their leaders have dominance. That is, their leaders hold power via personal connections and the threat and practice of violence, bribes, sex, gossip, and conformity pressures. Our leaders, instead, mainly just have whatever abilities follow from our deepest respect and admiration regarding their wisdom and efforts on serious topics that matter for us all. Their leaders more seek power, while ours more have leadership thrust upon them. Because of this us/them split, we tend to try to use persuasion on us, but force on them, when seeking to to change behaviors.


Clearly, while there is some fact of the matter about how much a person gains their status via licit or illicit means, there is also a lot of impression management going on. We like to give others the impression that we personally mainly want prestige in ourselves and our associates, and that we only grant others status via the prestige they have earned. But let me suggest that, compared to this ideal, we actually want more dominance in ourselves and our associates than we like to admit, and we submit more often to dominance.

Cads, Dads, Doms: https://www.overcomingbias.com/2010/07/cads-dads-doms.html
"The proper dichotomy is not “virile vs. wimpy” as has been supposed, but “exciting vs. drab,” with the former having the two distinct sub-groups “macho man vs. pretty boy.” Another way to see that this is the right dichotomy is to look around the world: wherever girls really dig macho men, they also dig the peacocky musician type too, finding safe guys a bit boring. And conversely, where devoted dads do the best, it’s more difficult for macho men or in-town-for-a-day rockstars to make out like bandits. …

Whatever it is about high-pathogen-load areas that selects for greater polygynous behavior … will result in an increase in both gorilla-like and peacock-like males, since they’re two viable ways to pursue a polygynous mating strategy."

This fits with there being two kinds of status: dominance and prestige. Macho men, such as CEOs and athletes, have dominance, while musicians and artists have prestige. But women seek both short and long term mates. Since both kinds of status suggest good genes, both attract women seeking short term mates. This happens more when women are younger and richer, and when there is more disease. Foragers pretend they don’t respect dominance as much as they do, so prestigious men get more overt attention, while dominant men get more covert attention.

Women seeking long term mates also consider a man’s ability to supply resources, and may settle for poorer genes to get more resources. Dominant men tend to have more resources than prestigious men, so such men are more likely to fill both roles, being long term mates for some women and short term mates for others. Men who can offer only prestige must accept worse long term mates, while men who can offer only resources must accept few short term mates. Those low in prestige, resources, or dominance must accept no mates. A man who had prestige, dominance, and resources would get the best short and long term mates – what men are these?

Stories are biased toward dramatic events, and so are biased toward events with risky men; it is harder to tell a good story about the attraction of a resource-rich man. So stories naturally encourage short term mating. Shouldn’t this make long-term mates wary of strong mate attraction to dramatic stories?

Woman want three things: someone to fight for them (the Warrior), someone to provide for them (the Tycoon) and someone to excite their emotions or entertain them (the Wizard).

In this context,

Dad= Tycoon
Cad= Wizard

To repeat:

Dom (Cocky)+ Dad (Generous) + Cad (Exciting/Funny) = Laid

There is an old distinction between "proximate" and "ultimate" causes. Evolution is an ultimate cause, physiology (and psychology, here) is a proximate cause. The flower bends to follow the sun because it gathers more light that way, but the immediate mechanism of the bending involves hormones called auxins. I see a lot of speculation about, say, sexual cognitive dimorphism whose ultimate cause is evolutionary, but not so much speculation about the proximate cause - the "how" of the difference, rather than the "why". And here I think a visit to an older mode of explanation like Marsden's - one which is psychological rather than genetic - can sensitize us to the fact that the proximate causes of a behavioral tendency need not be a straightforward matter of being hardwired differently.

This leads to my second point, which is just that we should remember that human beings actually possess consciousness. This means not only that the proximate cause of a behavior may deeply involve subjectivity, self-awareness, and an existential situation. It also means that all of these propositions about what people do are susceptible to change once they have been spelled out and become part of the culture. It is rather like the stock market: once everyone knows (or believes) something, then that information provides no advantage, creating an incentive for novelty.

Finally, the consequences of new beliefs about the how and the why of human nature and human behavior. Right or wrong, theories already begin to have consequences once they are taken up and incorporated into subjectivity. We really need a new Foucault to take on this topic.

The Economics of Social Status: http://www.meltingasphalt.com/the-economics-of-social-status/
Prestige vs. dominance. Joseph Henrich (of WEIRD fame) distinguishes two types of status. Prestige is the kind of status we get from being an impressive human specimen (think Meryl Streep), and it's governed by our 'approach' instincts. Dominance, on the other hand, is … [more]
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september 2016 by nhaliday
Democracy does not cause growth | Brookings Institution
64-page paper
Democracy & Growth: http://www.nber.org/papers/w4909
The favorable effects on growth include maintenance of the rule of law, free markets, small government consumption, and high human capital. Once these kinds of variables and the initial level of real per-capita GDP are held constant, the overall effect of democracy on growth is weakly negative. There is a suggestion of a nonlinear relationship in which democracy enhances growth at low levels of political freedom but depresses growth when a moderate level of freedom has already been attained.

The growth effect of democracy: Is it heterogenous and how can it be estimated∗: http://perseus.iies.su.se/~tpers/papers/cifar_paper_may16_07.pdf
In particular, we find an average negative effect on growth of leaving democracy on the order of −2 percentage points implying effects on income per capita as large as 45 percent over the 1960-2000 panel. Heterogenous characteristics of reforming and non-reforming countries appear to play an important role in driving these results.

Does democracy cause innovation? An empirical test of the popper hypothesis: http://www.sciencedirect.com.sci-hub.cc/science/article/pii/S0048733317300975
The results from the difference-in-differences method show that democracy itself has no direct positive effect on innovation measured with patent counts, patent citations and patent originality.

Benevolent Autocrats: https://williameasterly.files.wordpress.com/2011/09/benevolent-autocrats-easterly-draft.pdf
A large literature attributes this to the higher variance of growth rates under autocracy than under democracy. The literature offers alternative explanations for this stylized fact: (1) leaders don’t matter under democracy, but good and bad leaders under autocracy cause high and low growth, (2) leaders don’t matter under autocracy either, but good and bad autocratic systems cause greater extremes of high and low growth, or (3) democracy does better than autocracy at reducing variance from shocks from outside the political system. This paper details further the stylized facts to test these distinctions. Inconsistent with (1), the variance of growth within the terms of leaders swamps the variance across leaders, and more so under autocracy than under democracy. Country effects under autocracy are also overwhelmed by within-country variance, inconsistent with (2). Explanation (3) fits the stylized facts the best of the three alternatives.

Political Institutions, Size of Government and Redistribution: An empirical investigation: http://www.lse.ac.uk/internationalDevelopment/pdf/WP/WP89.pdf
Results show that the stronger democratic institutions are, the lower is government size and the higher the redistributional capacity of the state. Political competition exercises the strongest and most robust effect on the two variables.

Fits the high-variance theory of autocracies:
More miracles, more disasters. And there's a lot of demand for miracles.

Measuring the ups and downs of governance: https://www.brookings.edu/blog/future-development/2017/09/22/measuring-the-ups-and-downs-of-governance/
Figure 2: Voice and Accountability and Government Effectiveness, 2016
Georgia, Japan, Rwanda, and Serbia ↑ Gov Effectiveness; Indonesia, Tunisia, Liberia, Serbia, and Nigeria ↑ Voice and Accountability.

The logic of hereditary rule: theory and evidence: http://eprints.lse.ac.uk/69615/
Hereditary leadership has been an important feature of the political landscape throughout history. This paper argues that hereditary leadership is like a relational contract which improves policy incentives. We assemble a unique dataset on leaders between 1874 and 2004 in which we classify them as hereditary leaders based on their family history. The core empirical finding is that economic growth is higher in polities with hereditary leaders but only if executive constraints are weak. Moreover, this holds across of a range of specifications. The finding is also mirrored in policy outcomes which affect growth. In addition, we find that hereditary leadership is more likely to come to an end when the growth performance under the incumbent leader is poor.

I noted this when the paper was a working paper, but non-hereditary polities with strong contraints have higher growth rates.
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september 2016 by nhaliday

bundles : econpatterns

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