nhaliday + org:econlib   65

Effects of Education on Political Opinions: An International Study | International Journal of Public Opinion Research | Oxford Academic
Education and Political Party: The Effects of College or Social Class?: https://www.jstor.org/stable/2778029
The impact of education on political ideology: Evidence from European compulsory education reforms: https://www.sciencedirect.com/science/article/pii/S0272775716301704
correlation is with leftism, causal effect is shift to right

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

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

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

https://twitter.com/pseudoerasmus/status/963451867912130561
https://archive.is/sHI7g
https://archive.is/B5Gdv
https://archive.is/hFERC
https://archive.is/8IUDm
Bryan Caplan has written a very persuasive book suggesting that retention/transfer of learning is very low. how do we know it’s not the same with the “PoMo ethos”
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february 2018 by nhaliday
Immigrants and Everest, Bryan Caplan | EconLog | Library of Economics and Liberty
Immigrants use less welfare than natives, holding income constant. Immigrants are far less likely to be in jail than natives, holding high school graduation constant.* On the surface, these seem like striking results. But I've heard a couple of smart people [Garett Jones] demur with an old statistics joke: "Controlling for barometric pressure, Mount Everest has the same altitude as the Dead Sea." Sometimes controls conceal the truth rather than laying it bare.
https://twitter.com/GarettJones/status/897153018503852033
https://archive.is/9k2Ww
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august 2017 by nhaliday
Inherited Trust and Growth - American Economic Association
This paper develops a new method to uncover the causal effect of trust on economic growth by focusing on the inherited component of trust and its time variation. We show that inherited trust of descendants of US immigrants is significantly influenced by the country of origin and the timing of arrival of their forebears. We thus use the inherited trust of descendants of US immigrants as a time-varying measure of inherited trust in their country of origin. This strategy allows to identify the sizeable causal impact of inherited trust on worldwide growth during the twentieth century by controlling for country fixed effects. (JEL N11, N12, N31, N32, O47, Z13)

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

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

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

The autocratic roots of social distrust: http://sci-hub.tw/https://www.sciencedirect.com/science/article/pii/S0147596717300951
This paper identifies a new source of social distrust: an individual’s autocratic
origin.
 Individuals whose ancestors migrated from countries with higher autocracy
levels are less likely to trust others and to vote in presidential elections in the
U.S.
 The impact of autocratic culture on trust lasts for at least three generations
whereas the impact on voting disappears after one generation.
 The results are not driven by selection into migration or other factors such as the
GDP, education, or the strength of family ties in home countries in the U.S.
 Autocratic culture also has similar impacts on trust and voting across Europe.
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july 2017 by nhaliday
My Simplistic Theory of Left and Right, Bryan Caplan | EconLog | Library of Economics and Liberty
1. Leftists are anti-market. On an emotional level, they're critical of market outcomes. No matter how good market outcomes are, they can't bear to say, "Markets have done a great job, who could ask for more?"

2. Rightists are anti-leftist. On an emotional level, they're critical of leftists. No matter how much they agree with leftists on an issue, they can't bear to say, "The left is totally right, it would be churlish to criticize them."

http://econlog.econlib.org/archives/2017/06/yudkowsky_on_my.html
http://www.arnoldkling.com/blog/the-left-the-market-and-economists/
http://econlog.econlib.org/archives/2017/06/reply_to_yudkow.html
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june 2017 by nhaliday
Nancy MacLean Owes Tyler Cowen an Apology – Russ Roberts – Medium
https://notesonliberty.com/2017/06/26/james-buchanan-on-racism/
http://econlog.econlib.org/archives/2017/06/nancy_macleans.html
http://www.nationalreview.com/corner/448958/nancy-maclean-vs-tyler-cowen
https://www.washingtonpost.com/news/volokh-conspiracy/wp/2017/06/28/some-dubious-claims-in-nancy-macleans-democracy-in-chains/
http://www.independent.org/issues/article.asp?id=9115
http://www.arnoldkling.com/blog/wither-academic-ethics/
lol: https://twitter.com/tcjfs/status/879717516184080384
hmm: https://twitter.com/razibkhan/status/891134709924868096
https://www.washingtonpost.com/news/monkey-cage/wp/2017/08/04/james-buchanan-was-committed-to-basic-democratic-values/
http://policytrajectories.asa-comparative-historical.org/2017/08/book-symposium-democracy-in-chains/
http://bostonreview.net/class-inequality/henry-farrell-steven-m-teles-when-politics-drives-scholarship
http://bostonreview.net/class-inequality/marshall-steinbaum-book-explains-charlottesville
https://twitter.com/Econ_Marshall/status/903289946357858306
https://archive.is/LalIc
So any political regime premised on defending property rights is race-biased. If you want to call that racist, I think it's justified.

lmao wut
https://www.washingtonpost.com/news/volokh-conspiracy/wp/2017/09/01/georg-vanberg-democracy-in-chains-and-james-m-buchanan-on-school-integration/

https://www.wsj.com/articles/historical-fiction-at-duke-1508449507

The Bizarre Conspiracy Theory Nominated for a National Book Award: http://www.nationalreview.com/article/453408/nancy-macleans-democracy-chains-will-conspiracy-theory-win-national-book-award

https://thebaffler.com/salvos/master-class-on-the-make-hartman
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june 2017 by nhaliday
Kling on the Three Languages of Politics | EconTalk | Library of Economics and Liberty
So what I claim is that Progressives organize the good and the bad in terms of oppression and the oppressed, and they think in terms of groups. So, certain groups of people are oppressed, and certain groups of people are oppressors. And so the good is to align yourself against oppression, and the historical figures that have improved the world have fought against oppression and overcome oppression. The second axis is one I think Conservatives use, which is civilization and barbarism. The good is civilized values that have accumulated over time and have stood the test of time; and the bad is barbarians who try to strike out against those values and destroy civilization. And the third axis is one I associate with Libertarians, which is freedom versus coercion, so that good is individuals making their own choices, contracting freely with each other; and the bad is coercion at gunpoint, particularly on the part of governments.

http://www.arnoldkling.com/blog/russ-roberts-on-the-three-languages-of-politics/
http://www.arnoldkling.com/blog/three-axes-individual-reasoning-and-social-justification/
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june 2017 by nhaliday
The Behavioral Econ of Paperwork, Bryan Caplan | EconLog | Library of Economics and Liberty
If X is good, we can noticeably encourage it by modestly simplifying the paperwork. So yes, cut red tape for employment, construction, travel, and adoption. If X is bad, though, we can noticeably discourage it by modestly complicating the paperwork. Indeed, complexity is a viable substitute for explicit means-testing: If you lack the patience to fill out ten forms, you probably don't really need the money.
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june 2017 by nhaliday
Income Inequality | Inequality.org
Worsening American Income: Inequality: Is world trade to blame?: https://www.brookings.edu/articles/worsening-american-income-inequality-is-world-trade-to-blame/
America: A dromedary, not a Bactrian camel: http://econlog.econlib.org/archives/2017/05/america_a_drome.html

Department of Awful Statistics: Income Inequality Edition: https://thedailybeast.com/department-of-awful-statistics-income-inequality-edition
A Guide to Statistics on Historical Trends in Income Inequality: https://www.cbpp.org/research/poverty-and-inequality/a-guide-to-statistics-on-historical-trends-in-income-inequality
Income inequality in the United States: https://en.wikipedia.org/wiki/Income_inequality_in_the_United_States
The Geography of U.S. Inequality: https://www.nytimes.com/interactive/2016/09/06/upshot/up-geo-inequality.html

40 Years Of Income Inequality In America, In Graphs: http://www.npr.org/sections/money/2014/10/02/349863761/40-years-of-income-inequality-in-america-in-graphs
good charts of trends in income percentiles, wage stagnation, etc.
Wage Stagnation in Nine Charts: http://www.epi.org/publication/charting-wage-stagnation/
FIGURE 4
Middle-class wages are stagnant—Middle-wage workers’ hourly wage is up 6% since 1979, low-wage workers’ wages are down 5%, while those with very high wages saw a 41% increase
Cumulative change in real hourly wages of all workers, by wage percentile,* 1979–2013

A Relentless Widening of Disparity in Wealth: https://www.nytimes.com/2014/03/12/business/economy/a-relentless-rise-in-unequal-wealth.html
Our Broken Economy, in One Simple Chart: https://www.nytimes.com/interactive/2017/08/07/opinion/leonhardt-income-inequality.html
American Inequality in Six Charts: http://www.newyorker.com/news/john-cassidy/american-inequality-in-six-charts

US income inequality: caused by financiers and tech entrepreneurs: http://infoproc.blogspot.com/2006/09/us-income-inequality-caused-by.html
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may 2017 by nhaliday
William Stanley Jevons - Wikipedia
William Stanley Jevons FRS (/ˈdʒɛvənz/;[2] 1 September 1835 – 13 August 1882) was an English economist and logician.

Irving Fisher described Jevons' book A General Mathematical Theory of Political Economy (1862) as the start of the mathematical method in economics.[3] It made the case that economics as a science concerned with quantities is necessarily mathematical.[4] In so doing, it expounded upon the "final" (marginal) utility theory of value. Jevons' work, along with similar discoveries made by Carl Menger in Vienna (1871) and by Léon Walras in Switzerland (1874), marked the opening of a new period in the history of economic thought. Jevons' contribution to the marginal revolution in economics in the late 19th century established his reputation as a leading political economist and logician of the time.

Jevons broke off his studies of the natural sciences in London in 1854 to work as an assayer in Sydney, where he acquired an interest in political economy. Returning to the UK in 1859, he published General Mathematical Theory of Political Economy in 1862, outlining the marginal utility theory of value, and A Serious Fall in the Value of Gold in 1863. For Jevons, the utility or value to a consumer of an additional unit of a product is inversely related to the number of units of that product he already owns, at least beyond some critical quantity.

It was for The Coal Question (1865), in which he called attention to the gradual exhaustion of the UK's coal supplies, that he received public recognition, in which he put forth what is now known as the Jevons paradox, i.e. that increases in energy production efficiency leads to more not less consumption. The most important of his works on logic and scientific methods is his Principles of Science (1874),[5] as well as The Theory of Political Economy (1871) and The State in Relation to Labour (1882). Among his inventions was the logic piano, a mechanical computer.

https://en.wikipedia.org/wiki/Jevons_paradox
In economics, the Jevons paradox (/ˈdʒɛvənz/; sometimes the Jevons effect) occurs when technological progress increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the rate of consumption of that resource rises because of increasing demand.[1] The Jevons paradox is perhaps the most widely known paradox in environmental economics.[2] However, governments and environmentalists generally assume that efficiency gains will lower resource consumption, ignoring the possibility of the paradox arising.[3]

The Coal Question: http://www.econlib.org/library/YPDBooks/Jevons/jvnCQ.html
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may 2017 by nhaliday
Educational Romanticism & Economic Development | pseudoerasmus
https://twitter.com/GarettJones/status/852339296358940672
deleeted

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

...

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

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

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

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

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

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

...

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

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

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

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

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

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

But inserting conformity into the merit function is tricky: things become important signals… because they’re important signals. Otherwise useful actions are contraindicated because they’re “not done”. For example, test scores convey useful information. They could help show that an applicant is smart even though he attended a mediocre school – the same role they play in college admissions. But employers seldom request test scores, and although applicants may provide them, few do. Caplan says ” The word on the street… [more]
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april 2017 by nhaliday
The Numbers Speak: Foreign Language Requirements Are a Waste of Time and Money, Bryan Caplan | EconLog | Library of Economics and Liberty
25.7% of respondents speak a language other than English. Within this sample, 41.5% claim to speak the other language "very well." Within this sub-sub-sample, just 7.0% say they learned to speak this foreign language in school. If you multiply out these three percentages, you get 0.7%. The marginal product of two years of pain and suffering per high school graduate: less than one student in a hundred acquires fluency. (And that's self-assessed fluency, which people almost surely exaggerate).

If you lower the bar from "very well" to "well" the picture remains grim: merely 2.5% of GSS respondents claimed to reach this level of foreign language competence in school.

confirms my intuition

Language is Culture: https://bloodyshovel.wordpress.com/2017/08/30/language-is-culture/
First of all, LKY, peace be with him, was not a “self-taught linguist”. He’s a guy who learned some languages as an adult. That doesn’t make him a linguist. This makes him a language learner. There’s billions of those across the world. Lee Kuan Yew certainly wasn’t very good at it; the ability to learn foreign languages doesn’t correlate very strongly with IQ.

Mr. Lee held the popular idea that language was a zero-sum game? No, Mr. Lee understood the commonsensical idea that your brain has limited storage capacity. Like anything else. Your brain is made of atoms. It is not made of magic. It is not made of godly dust. It is a material thing. It is, in a sense, a container of information, and information takes space. It obviously does in computers; pray tell, NYT, why the brain should have infinite capacity? It doesn’t make sense.

Now I don’t know if LKY thought of it in these terms. I think that, as a language learner, he went by experience. I guess the more time he spent practicing Mandarin, or Hokkien, or Malay, the worse his English prose got. And that’s exactly how it works. Happens to me all the time, and happens to anyone who uses 2 or more languages regularly. The more different the languages, the less commons structures they share, the more acute the problem. Again, there is no reason why it should not be so. Information takes space. It isn’t hard.

Alas, it is true that academic linguists will not tell you this, even though they probably did in the 1950s. That is not because common sense has been “refuted”. It is because since the 1960s academia has morphed into a worldwide racket of fraud and deceit. If you read this blog you already know that; economics is bogus, climate science is bogus, psychology is bogus; even more than half of medical papers are bogus. Well, surprise surprise, linguistics is also bogus. The language learning industry is huge. There’s a lot of money in telling people that the brain is made of magic dust, that they can learn whatever they want whenever they want, as long as they give you money. 3 languages at the same time? Go for it! Kids are like sponges, they can learn anything. No, they can’t.
econotariat  cracker-econ  org:econlib  language  foreign-lang  education  efficiency  error  data  critique  cost-benefit  analysis  learning  multi  gnon  right-wing  zero-positive-sum  retention  tradeoffs  studying  cynicism-idealism  culture  society  polisci  politics  asia  developing-world  polis  conquest-empire  diversity  general-survey  quixotic 
april 2017 by nhaliday
The More Parents Pass on Earning Power to Offspring, the Weaker the Argument for..., Garett Jones | EconLog | Library of Economics and Liberty
...the welfare state as social insurance.

After all, if you know how your kids are going to turn out, what's there to insure against? Sure, you'd like to grab resources from other people--the raiding party has a long history--but it's only when you're not sure how your kids will turn out that you start fretting over whether insurance markets face major market failures and whether government-mandated redistribution can fix those market failures.

...

The Great Gatsby Curve has made the rounds recently, showing that in countries with higher income inequality, your parent's income does a better job predicting your income. One version from Chrystia Freeland, author of the new book Plutocrats (source: WonkBlog).

...

Coda: I'm trying to get in the habit of often using "productivity" instead of "income" or "earnings." I use the term neutrally, referring to private productivity not overall productivity, so a successful raiding party is just as productive as a McDonald's.

Subcoda: I saw Freeland speak about her book earlier this year, and she places substantial weight on productivity-side explanations for the rise of the new plutocracy.
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march 2017 by nhaliday
Redistributing from Capitalists to Workers: An Impossibility Theorem, Garett Jones | EconLog | Library of Economics and Liberty
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february 2017 by nhaliday
Why Aren't the Italians Libertarians?, Bryan Caplan | EconLog | Library of Economics and Liberty
Do Italians cheat on their taxes more than Swedes?: http://marginalrevolution.com/marginalrevolution/2016/05/the-culture-that-is-swedish-italian.html

cf
https://twitter.com/tcjfs/status/886674199967784960
https://archive.is/JpH0d
Also bureaucracy = big weak state as opposed to small strong state. Anarchotyranny is Sam Francis's idea that combines bureaucracy w anarchy

http://www.independent.org/publications/tir/article.asp?a=536
https://twitter.com/jacobitemag/status/891467216880717824
https://archive.is/EcoWK
The modern world's sickness in one tweet

Last night proved, once again, that there is no anxiety or sadness or fear you feel right now that cannot be cured by political action.

http://marginalrevolution.com/marginalrevolution/2016/08/regulation-and-distrust-revisited.html
Here’s a post I wrote in 2009 (no indent) that I will update today:

In an interesting paper, Aghion, Algan, Cahuc and Shleifer show that regulation is greater in societies where people do not trust one another. The graph below, for example, shows that societies with a greater level of distrust have stronger minimum wage laws. Note that the result is not that distrust in markets is associated with stronger minimum wages but that distrust in general is associated with greater regulation of all kinds. Distrust in government, for example, is positively correlated with regulation of business. Or to put it the other way, trust in government (as well as other institutions) is associated with less regulation.

Aghion et al. argue that the causality flows both ways on the regulation-distrust nexus. Distrust makes people turn to government but in a society with a lot of distrust government is often corrupt and this makes people distrust even more. Crucially, when people distrust others they invest not in the highest return projects but in human and physical capital that is complementary to distrust–for example, they invest in human capital that helps them bond with their group/tribe/family rather than in human capital that helps them to bond with “outsiders” and they invest in physical capital that is more difficult to expropriate rather than in easier to expropriate capital, even though in both cases the latter investments may be the all-else-equal higher return investments. Such distrust traps are quite similar to Bryan Caplan’s idea traps.

Thus, societies with a lot of distrust generate regulation and corruption and citizens who don’t have the skills or preferences to break out of the distrust equilibrium. Consider, for example, that in societies with a lot of distrust parents are less likely to consider it important to teach their children about tolerance and respect for others.

The update should be obvious. More and more this appears to be describing the United States. More distrust in government, more regulation, lower growth and more people who are so distrustful of one another that they can’t cooperate to break out of the bad equilibrium. Here drawn from Our World in Data is interpersonal trust in the United States.

https://twitter.com/GarettJones/status/765615697514770432
http://www.heritage.org/government-regulation/report/red-tape-rising-six-years-escalating-regulation-under-obama
https://fee.org/articles/us-economic-liberty-has-been-sinking-for-sixteen-years/
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january 2017 by nhaliday
Highlighting a Waste of Time, Bryan Caplan | EconLog | Library of Economics and Liberty
Garett Jones' top catchphrase is, "If only there were a vast empirical literature on X."  When you're well-aware of the vast empirical literature to which he's alluding, it's funny.  Whenever you discover a new-to-you vast empirical literature, though, it's humbling.  The world's packed with vast empirical literatures.  Anytime you open your mouth in earnest, you're probably running afoul of one of them. 

The Power of Distributed Practice: https://www.econlib.org/archives/2015/09/the_power_of_di.html
basically: spaced repetition works
spearhead  cracker-econ  org:econlib  aphorism  social-science  education  study  summary  psychology  econotariat  evidence-based  intervention  null-result  input-output  multi  studying  retention  distribution  time  sequential  practice  commentary  cost-benefit  notetaking 
december 2016 by nhaliday
The Texas magnet, Scott Sumner | EconLog | Library of Economics and Liberty
There's a lot recent talk about how talent from the center of America flows to wealthy cities on the two coasts, where the opportunities for highly talented people are greatest. Another version of that brain drain is occurring in south central America, where Texas is like a magnet, drawing talent from many other states in the center of the country. It's a different model from Wall Street and Silicon Valley, but equally effective.

When I first moved to Boston in 1982 the quality of life in Boston was not much different from in Nashua, New Hampshire. At the time, New Hampshire drew lots of residents north from "Taxachusetts". Today Boston is a far more exciting place to live than New Hampshire, and the Granite State is now growing more slowly than Massachusetts. My theory is that in information oriented industries, state income tax rates are not a big factor. But in the more competitive goods industries in much of middle America, a lack of state income tax allows states like Texas, Tennessee, Washington and even South Dakota to do noticeably better than their neighbors.
econotariat  scott-sumner  texas  california  usa  labor  org:econlib  class  efficiency  policy  speculation  comparison  economics  stylized-facts  northeast  taxes  urban  density  urban-rural 
december 2016 by nhaliday
Exploring Elitist Democracy: The Latest from Gilens and Page, Bryan Caplan | EconLog | Library of Economics and Liberty
First, middle-class Americans' preferences are highly correlated with rich Americans' preferences - but not interest groups' preferences:

It turns out, in fact, that the preferences of average citizens are positively and fairly highly correlated, across issues, with the preferences of economic elites (see Table 2.) Rather often, average citizens and affluent citizens (our proxy for economic elites) want the same things from government. This bivariate correlation affects how we should interpret our later multivariate findings in terms of "winners" and "losers." It also suggests a reason why serious scholars might keep adhering to both the Majoritarian Electoral Democracy and the Economic Elite Domination theoretical traditions, even if one of them may be dead wrong in terms of causal impact. Ordinary citizens, for example, might often be observed to "win" (that is, to get their preferred policy outcomes) even if they had no independent effect whatsoever on policy making, if elites (with whom they often agree) actually prevail.

But net interest group stands are not substantially correlated with the preferences of average citizens. Taking all interest groups together, the index of net interest group alignment correlates only a non-significant .04 with average citizens' preferences! (See Table 2.) This casts grave doubt on David Truman's and others' argument that organized interest groups tend to do a good job of representing the population as a whole. Indeed, as Table 2 indicates, even the net alignments of the groups we have categorized as "mass-based" correlate with average citizens' preferences only at the very modest (though statistically significant) level of .12.

Second, each theory looks good in isolation:

When taken separately, each independent variable - the preferences of average citizens, the preferences of economic elites, and the net alignments of organized interest groups - is strongly, positively, and quite significantly related to policy change. Little wonder that each theoretical tradition has its strong adherents.

Third, average citizens lose almost all apparent influence if you do multiple regression:

These results suggest that reality is best captured by mixed theories in which both individual economic elites and organized interest groups (including corporations, largely owned and controlled by wealthy elites) play a substantial part in affecting public policy, but the general public has little or no independent influence.
econotariat  polisci  politics  government  cracker-econ  policy  political-econ  economics  study  summary  realpolitik  gilens-page  🎩  org:econlib  social-structure  democracy  managerial-state  social-choice  stylized-facts  madisonian  chart  antidemos  exit-voice  interests 
november 2016 by nhaliday
My Beautiful Bubble, Bryan Caplan | EconLog | Library of Economics and Liberty
funny rejoinder from Sailer:
Of course, if there were a big war, it would be nice to be defended by all those dreary Americans you despise.

And, the irony is, they'd do it, too, just because you are an American.
reflection  society  community  economics  contrarianism  lifestyle  philosophy  len:short  econotariat  cracker-econ  org:econlib  network-structure  minimalism  -_-  polarization  individualism-collectivism  isteveish  subculture  nationalism-globalism 
september 2016 by nhaliday
Teachers: Much More Than You Wanted To Know | Slate Star Codex
Random Thoughts on the Idiocy of VAM: https://educationrealist.wordpress.com/2016/05/20/random-thoughts-on-the-idiocy-of-vam/
Scott Alexander reviews the research on value-added measurement of teacher quality. While Scott’s overview is perfectly fine, any such effort is akin to a circa 1692 overview of the research literature on alchemy. Quantifying teacher quality will, I believe, be understood in those terms soon enough.

Value-Added and Social Desirability Bias, Bryan Caplan: http://econlog.econlib.org/archives/2016/09/value-added_and.html
The policy that dramatically passes the cost-benefit test is "deselection," better known as firing bad teachers.

What's up? I once again point my accusatory finger at Social Desirability Bias. Rewarding good teachers sounds a lot nicer than firing bad teachers. So when research comes along that potentially recommends both, pundits and politicians don't coolly crunch the numbers. They leap to the recommendation that's pleasing to the ear. So what if the original researchers find that firing bad teachers wins with flying colors? Move along folks, nothing to see here...
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may 2016 by nhaliday

bundles : pub

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