nhaliday + econ-productivity   102

Reid Hofmann and Peter Thiel and technology and politics - Marginal REVOLUTION
econotariat  marginal-rev  links  video  interview  thiel  barons  randy-ayndy  cryptocurrency  ai  communism  individualism-collectivism  civil-liberty  sv  tech  automation  speedometer  stagnation  technology  politics  current-events  trends  democracy  usa  malthus  zero-positive-sum  china  asia  stanford  news  org:local  polarization  economics  cycles  growth-econ  zeitgeist  housing  urban-rural  california  the-west  decentralized  privacy  anonymity  inequality  multi  winner-take-all  realpolitik  machiavelli  error  order-disorder  leviathan  dirty-hands  the-world-is-just-atoms  heavy-industry  embodied  engineering  reflection  trump  2016-election  pessimism  definite-planning  optimism  left-wing  right-wing  steel-man  managerial-state  orwellian  vampire-squid  contrarianism  age-generation  econ-productivity  compensation  time-series  feudal  gnosis-logos 
february 2018 by nhaliday
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
spearhead  econotariat  garett-jones  unaffiliated  twitter  social  discussion  india  asia  china  economics  macro  growth-econ  econ-metrics  wealth  wealth-of-nations  convergence  world  developing-world  trends  time-series  cjones-like  prediction  multi  backup  the-bones  long-short-run  europe  mediterranean  comparison  simulation  econ-productivity  great-powers  thucydides  broad-econ  pop-diff  microfoundations  🎩  marginal  hive-mind  rindermann-thompson  hari-seldon  tools  calculator  estimate 
december 2017 by nhaliday
Relative Quality of Foreign Nurses in the United States
We find a positive wage premium for nurses educated in the Philippines, but not for foreign nurses educated elsewhere. The premium peaked at 8% in 2000, and decreased to 4% in 2010.
pdf  study  economics  labor  industrial-org  migration  human-capital  healthcare  usa  asia  developing-world  general-survey  compensation  econ-productivity  data  ability-competence  quality 
december 2017 by nhaliday
The Long-run Effects of Agricultural Productivity on Conflict, 1400-1900∗
This paper provides evidence of the long-run effects of a permanent increase in agricultural productivity on conflict. We construct a newly digitized and geo-referenced dataset of battles in Europe, the Near East and North Africa covering the period between 1400 and 1900 CE. For variation in permanent improvements in agricultural productivity, we exploit the introduction of potatoes from the Americas to the Old World after the Columbian Exchange. We find that the introduction of potatoes permanently reduced conflict for roughly two centuries. The results are driven by a reduction in civil conflicts

#4 An obvious counterfactual is of course the potato blight (1844 and beyond) in Europe. Here’s the Wikipedia page ‘revolutions of 1848’ https://en.wikipedia.org/wiki/Revolutions_of_1848
pdf  study  marginal-rev  economics  broad-econ  cliometrics  history  medieval  early-modern  age-of-discovery  branches  innovation  discovery  agriculture  food  econ-productivity  efficiency  natural-experiment  europe  the-great-west-whale  MENA  war  revolution  peace-violence  trivia  cocktail  stylized-facts  usa  endogenous-exogenous  control  geography  cost-benefit  multi  econotariat  links  poast  wiki  reference  events  roots 
december 2017 by nhaliday
As a foundation for this study, I organized the collection of village-level panel data on violent actors, managing teams of surveyors, village elders, and households in 380 war-torn areas of DRC. I introduce optimal taxation theory to the decision of violent actors to establish local monopolies of violence. The value of such decision hinges on their ability to tax the local population. A sharp rise in the global demand for coltan, a bulky commodity used in the electronics industry, leads violent actors to impose monopolies of violence and taxation in coltan sites, which persist even years after demand collapses. A similar rise in the demand for gold, easier to conceal and more difficult to tax, does not. However, the groups who nevertheless control gold sites are more likely to respond by undertaking investments in fiscal capacity, consistent with the difficulty to observe gold, and with well-documented trajectories of state formation in Europe (Ardant, 1975). The findings support the view that the expected revenue from taxation, determined in particular by tax base elasticity and costly investments in fiscal capacity, can explain the stages of state formation preceding the states as we recognize them today.
pdf  study  economics  growth-econ  broad-econ  political-econ  polisci  leviathan  north-weingast-like  unintended-consequences  institutions  microfoundations  econometrics  empirical  government  taxes  rent-seeking  supply-demand  incentives  property-rights  africa  developing-world  peace-violence  interests  longitudinal  natural-experiment  endogenous-exogenous  archaeology  trade  world  feudal  roots  ideas  cost-benefit  econ-productivity  traces 
november 2017 by nhaliday
Fortifications and Democracy in the Ancient Greek World by Josiah Ober, Barry Weingast :: SSRN
- Joshiah Ober, Barry Weingast

In the modern world, access-limiting fortification walls are not typically regarded as promoting democracy. But in Greek antiquity, increased investment in fortifications was correlated with the prevalence and stability of democracy. This paper sketches the background conditions of the Greek city-state ecology, analyzes a passage in Aristotle’s Politics, and assesses the choices of Hellenistic kings, Greek citizens, and urban elites, as modeled in a simple game. The paper explains how city walls promoted democracy and helps to explain several other puzzles: why Hellenistic kings taxed Greek cities at lower than expected rates; why elites in Greek cities supported democracy; and why elites were not more heavily taxed by democratic majorities. The relationship between walls, democracy, and taxes promoted continued economic growth into the late classical and Hellenistic period (4th-2nd centuries BCE), and ultimately contributed to the survival of Greek culture into the Roman era, and thus modernity. We conclude with a consideration of whether the walls-democracy relationship holds in modernity.

'Rulers Ruled by Women': An Economic Analysis of the Rise and Fall of Women's Rights in Ancient Sparta by Robert K. Fleck, F. Andrew Hanssen: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=788106
Throughout most of history, women as a class have possessed relatively few formal rights. The women of ancient Sparta were a striking exception. Although they could not vote, Spartan women reportedly owned 40 percent of Sparta's agricultural land and enjoyed other rights that were equally extraordinary. We offer a simple economic explanation for the Spartan anomaly. The defining moment for Sparta was its conquest of a neighboring land and people, which fundamentally changed the marginal products of Spartan men's and Spartan women's labor. To exploit the potential gains from a reallocation of labor - specifically, to provide the appropriate incentives and the proper human capital formation - men granted women property (and other) rights. Consistent with our explanation for the rise of women's rights, when Sparta lost the conquered land several centuries later, the rights for women disappeared. Two conclusions emerge that may help explain why women's rights have been so rare for most of history. First, in contrast to the rest of the world, the optimal (from the men's perspective) division of labor among Spartans involved women in work that was not easily monitored by men. Second, the rights held by Spartan women may have been part of an unstable equilibrium, which contained the seeds of its own destruction.
study  broad-econ  economics  polisci  political-econ  institutions  government  north-weingast-like  democracy  walls  correlation  polis  history  mediterranean  iron-age  the-classics  microfoundations  modernity  comparison  architecture  military  public-goodish  elite  civic  taxes  redistribution  canon  literature  big-peeps  conquest-empire  rent-seeking  defense  models  GT-101  incentives  urban  urban-rural  speculation  interdisciplinary  cliometrics  multi  civil-liberty  gender  gender-diff  equilibrium  cycles  branches  labor  interests  property-rights  unintended-consequences  explanation  explanans  analysis  econ-productivity  context  arrows  micro  natural-experiment 
november 2017 by nhaliday
Definite optimism as human capital | Dan Wang
I’ve come to the view that creativity and innovative capacity aren’t a fixed stock, coiled and waiting to be released by policy. Now, I know that a country will not do well if it has poor infrastructure, interest rate management, tax and regulation levels, and a whole host of other issues. But getting them right isn’t sufficient to promote innovation; past a certain margin, when they’re all at rational levels, we ought to focus on promoting creativity and drive as a means to propel growth.


When I say “positive” vision, I don’t mean that people must see the future as a cheerful one. Instead, I’m saying that people ought to have a vision at all: A clear sense of how the technological future will be different from today. To have a positive vision, people must first expand their imaginations. And I submit that an interest in science fiction, the material world, and proximity to industry all help to refine that optimism. I mean to promote imagination by direct injection.


If a state has lost most of its jobs for electrical engineers, or nuclear engineers, or mechanical engineers, then fewer young people in that state will study those practices, and technological development in related fields slow down a little further. When I bring up these thoughts on resisting industrial decline to economists, I’m unsatisfied with their responses. They tend to respond by tautology (“By definition, outsourcing improves on the status quo”) or arithmetic (see: gains from comparative advantage, Ricardo). These kinds of logical exercises are not enough. I would like for more economists to consider a human capital perspective for preserving manufacturing expertise (to some degree).

I wonder if the so-called developed countries should be careful of their own premature deindustrialization. The US industrial base has faltered, but there is still so much left to build. Until we’ve perfected asteroid mining and super-skyscrapers and fusion rockets and Jupiter colonies and matter compilers, we can’t be satisfied with innovation confined mostly to the digital world.

Those who don’t mind the decline of manufacturing employment like to say that people have moved on to higher-value work. But I’m not sure that this is usually the case. Even if there’s an endlessly capacious service sector to absorb job losses in manufacturing, it’s often the case that these new jobs feature lower productivity growth and involve greater rent-seeking. Not everyone is becoming hedge fund managers and machine learning engineers. According to BLS, the bulk of service jobs are in 1. government (22 million), 2. professional services (19m), 3. healthcare (18m), 4. retail (15m), and 5. leisure and hospitality (15m). In addition to being often low-paying but still competitive, a great deal of service sector jobs tend to stress capacity for emotional labor over capacity for manual labor. And it’s the latter that tends to be more present in fields involving technological upgrading.


Here’s a bit more skepticism of service jobs. In an excellent essay on declining productivity growth, Adair Turner makes the point that many service jobs are essentially zero-sum. I’d like to emphasize and elaborate on that idea here.


Call me a romantic, but I’d like everyone to think more about industrial lubricants, gas turbines, thorium reactors, wire production, ball bearings, underwater cables, and all the things that power our material world. I abide by a strict rule never to post or tweet about current political stuff; instead I try to draw more attention to the world of materials. And I’d like to remind people that there are many things more edifying than following White House scandals.


First, we can all try to engage more actively with the material world, not merely the digital or natural world. Go ahead and pick an industrial phenomenon and learn more about it. Learn more about the history of aviation, and what it took to break the sound barrier; gaze at the container ships as they sail into port, and keep in mind that they carry 90 percent of the goods you see around you; read about what we mold plastics to do; meditate on the importance of steel in civilization; figure out what’s driving the decline in the cost of solar energy production, or how we draw electricity from nuclear fission, or what it takes to extract petroleum or natural gas from the ground.


Here’s one more point that I’d like to add on Girard at college: I wonder if to some extent current dynamics are the result of the liberal arts approach of “college teaches you how to think, not what to think.” I’ve never seen much data to support this wonderful claim that college is good at teaching critical thinking skills. Instead, students spend most of their energies focused on raising or lowering the status of the works they study or the people around them, giving rise to the Girardian terror that has gripped so many campuses.

College as an incubator of Girardian terror: http://danwang.co/college-girardian-terror/
It’s hard to construct a more perfect incubator for mimetic contagion than the American college campus. Most 18-year-olds are not super differentiated from each other. By construction, whatever distinctions any does have are usually earned through brutal, zero-sum competitions. These tournament-type distinctions include: SAT scores at or near perfection; being a top player on a sports team; gaining master status from chess matches; playing first instrument in state orchestra; earning high rankings in Math Olympiad; and so on, culminating in gaining admission to a particular college.

Once people enter college, they get socialized into group environments that usually continue to operate in zero-sum competitive dynamics. These include orchestras and sport teams; fraternities and sororities; and many types of clubs. The biggest source of mimetic pressures are the classes. Everyone starts out by taking the same intro classes; those seeking distinction throw themselves into the hardest classes, or seek tutelage from star professors, and try to earn the highest grades.

Mimesis Machines and Millennials: http://quillette.com/2017/11/02/mimesis-machines-millennials/
In 1956, a young Liverpudlian named John Winston Lennon heard the mournful notes of Elvis Presley’s Heartbreak Hotel, and was transformed. He would later recall, “nothing really affected me until I heard Elvis. If there hadn’t been an Elvis, there wouldn’t have been the Beatles.” It is an ancient human story. An inspiring model, an inspired imitator, and a changed world.

Mimesis is the phenomenon of human mimicry. Humans see, and they strive to become what they see. The prolific Franco-Californian philosopher René Girard described the human hunger for imitation as mimetic desire. According to Girard, mimetic desire is a mighty psychosocial force that drives human behavior. When attempted imitation fails, (i.e. I want, but fail, to imitate my colleague’s promotion to VP of Business Development), mimetic rivalry arises. According to mimetic theory, periodic scapegoating—the ritualistic expelling of a member of the community—evolved as a way for archaic societies to diffuse rivalries and maintain the general peace.

As civilization matured, social institutions evolved to prevent conflict. To Girard, sacrificial religious ceremonies first arose as imitations of earlier scapegoating rituals. From the mimetic worldview healthy social institutions perform two primary functions,

They satisfy mimetic desire and reduce mimetic rivalry by allowing imitation to take place.
They thereby reduce the need to diffuse mimetic rivalry through scapegoating.
Tranquil societies possess and value institutions that are mimesis tolerant. These institutions, such as religion and family, are Mimesis Machines. They enable millions to see, imitate, and become new versions of themselves. Mimesis Machines, satiate the primal desire for imitation, and produce happy, contented people. Through Mimesis Machines, Elvis fans can become Beatles.

Volatile societies, on the other hand, possess and value mimesis resistant institutions that frustrate attempts at mimicry, and mass produce frustrated, resentful people. These institutions, such as capitalism and beauty hierarchies, are Mimesis Shredders. They stratify humanity, and block the ‘nots’ from imitating the ‘haves’.
techtariat  venture  commentary  reflection  innovation  definite-planning  thiel  barons  economics  growth-econ  optimism  creative  malaise  stagnation  higher-ed  status  error  the-world-is-just-atoms  heavy-industry  sv  zero-positive-sum  japan  flexibility  china  outcome-risk  uncertainty  long-short-run  debt  trump  entrepreneurialism  human-capital  flux-stasis  cjones-like  scifi-fantasy  labor  dirty-hands  engineering  usa  frontier  speedometer  rent-seeking  econ-productivity  government  healthcare  essay  rhetoric  contrarianism  nascent-state  unintended-consequences  volo-avolo  vitality  technology  tech  cs  cycles  energy-resources  biophysical-econ  trends  zeitgeist  rot  alt-inst  proposal  multi  news  org:mag  org:popup  philosophy  big-peeps  speculation  concept  religion  christianity  theos  buddhism  politics  polarization  identity-politics  egalitarianism-hierarchy  inequality  duplication  society  anthropology  culture-war  westminster  info-dynamics  tribalism  institutions  envy  age-generation  letters  noble-lie 
october 2017 by nhaliday
Is the economy illegible? | askblog
In the model of the economy as a GDP factory, the most fundamental equation is the production function, Y = f(K,L).

This says that total output (Y) is determined by the total amount of capital (K) and the total amount of labor (L).

Let me stipulate that the economy is legible to the extent that this model can be applied usefully to explain economic developments. I want to point out that the economy, while never as legible as economists might have thought, is rapidly becoming less legible.
econotariat  cracker-econ  economics  macro  big-picture  empirical  legibility  let-me-see  metrics  measurement  econ-metrics  volo-avolo  securities  markets  amazon  business-models  business  tech  sv  corporation  inequality  compensation  polarization  econ-productivity  stagnation  monetary-fiscal  models  complex-systems  map-territory  thinking  nationalism-globalism  time-preference  cost-disease  education  healthcare  composition-decomposition  econometrics  methodology  lens  arrows  labor  capital  trends  intricacy  🎩  moments  winner-take-all  efficiency  input-output 
august 2017 by nhaliday
From Soviets to Oligarchs: Inequality and Property in Russia 1905-2016
We find that official survey-based measures vastly under-estimate the rise of inequality since 1990. According to our benchmark estimates, top income shares are now similar to (or higher than) the levels observed in the United States. We also find that inequality has increased substantially more in Russia than in China and other ex-communist countries in Eastern Europe. We relate this finding to the specific transition strategy followed in Russia. According to our benchmark estimates, the wealth held offshore by rich Russians is about three times larger than official net foreign reserves, and is comparable in magnitude to total household financial assets held in Russia.

Figure 1a, 8abc, 9b

The Role of Oligarchs in Russian Capitalism: https://www.aeaweb.org/articles?id=10.1257/0895330053147994

Using a unique dataset, we describe the degree of ownership concentration in Russian economy and its role in shaping economic and political institutions in Russia. In particular, we find that Russian "oligarchs" do control a substantial part of the economy. While the relative weight of their firms in Russian economy is huge, they do not seem to be excessively large by the standards of the global economy where most of them are operating. The oligarchs seem to run their firms more efficiently than other Russian owners controlling for industry, region and size.

Russia's Billionaires: https://www.aeaweb.org/articles?id=10.1257/aer.p20161068

Using data collected by Forbes since the 1990s, I examine the emergence and survival of the super-wealthy in Russia over the past two decades and compare Russia's record to those of other countries. The major surge in the number of Russian billionaires came in the mid-2000s, mirroring the dynamic worldwide. While early billionaires were predominantly found in the oil, gas, metals, and banking sectors, the distribution has become more diverse, now including some in trade, real estate, chemicals, and information technology. Only a minority of today's Russian billionaires acquired significant assets in the privatization of the 1990s.

Popular Attitudes towards Markets and Democracy: Russia and United States Compared 25 Years Later: http://www.nber.org/papers/w22027

While we find some differences in attitudes towards markets across countries and through time, we do not find most of the differences large or significant. Our evidence does not support a common view that the Russian personality is fundamentally illiberal or non-democratic.

The Political Economy of Transition: https://www.aeaweb.org/articles?id=10.1257/0895330027102
- Gérard Roland, 2002

The overriding importance of political constraints in the transition process has led to developments of the theory of the political economy of reform. What are the main insights from that theory? How does it reflect the transition reality? What have we learned, and what do we still need to learn? The present article will attempt to answer those questions.

pdf  study  economics  broad-econ  history  mostly-modern  pre-ww2  cold-war  russia  communism  authoritarianism  inequality  data  class  econ-metrics  wealth  compensation  money  usa  china  asia  capitalism  visualization  elite  vampire-squid  time-series  distribution  piketty  multi  chart  heavy-industry  nationalism-globalism  flux-stasis  🎩  political-econ  polisci  winner-take-all  poll  values  democracy  institutions  industrial-org  property-rights  efficiency  energy-resources  roots  corruption  group-level  market-power  rent-seeking  regression-to-mean  legacy  anomie  quality  econ-productivity  leviathan  technocracy  civic  madisonian  redistribution  world  growth-econ  developing-world  markets  news  org:foreign 
august 2017 by nhaliday
The Determinants of Trust
Both individual experiences and community characteristics influence how much people trust each other. Using data drawn from US localities we find that the strongest factors that reduce trust are: i) a recent history of traumatic experiences, even though the passage of time reduces this effect fairly rapidly; ii) belonging to a group that historically felt discriminated against, such as minorities (black in particular) and, to a lesser extent, women; iii) being economically unsuccessful in terms of income and education; iv) living in a racially mixed community and/or in one with a high degree of income disparity. Religious beliefs and ethnic origins do not significantly affect trust. The latter result may be an indication that the American melting pot at least up to a point works, in terms of homogenizing attitudes of different cultures, even though racial cleavages leading to low trust are still quite high.

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

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

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

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

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

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

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

does it generalize to first world?

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

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

individual payoff, etc.:

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

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


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

Do Trust and … [more]
study  economics  alesina  growth-econ  broad-econ  trust  cohesion  social-capital  religion  demographics  race  diversity  putnam-like  compensation  class  education  roots  phalanges  general-survey  multi  usa  GT-101  conceptual-vocab  concept  behavioral-econ  intricacy  composition-decomposition  values  descriptive  correlation  harvard  field-study  migration  poll  status  🎩  🌞  chart  anthropology  cultural-dynamics  psychology  social-psych  sociology  cooperate-defect  justice  egalitarianism-hierarchy  inequality  envy  n-factor  axelrod  pdf  microfoundations  nationalism-globalism  africa  intervention  counter-revolution  tribalism  culture  society  ethnocentrism  coordination  world  developing-world  innovation  econ-productivity  government  stylized-facts  madisonian  wealth-of-nations  identity-politics  public-goodish  s:*  legacy  things  optimization  curvature  s-factor  success  homo-hetero  higher-ed  models  empirical  contracts  human-capital  natural-experiment  endo-exo  data  scale  trade  markets  time  supply-demand  summary 
august 2017 by nhaliday
Happiness and Productivity
The paper provides evidence that happiness raises productivity. In Experiment 1, a randomized trial is designed. Some subjects have their happiness levels increased, while those in a control group do not. Treated subjects have 12% greater productivity in a paid piece-rate Niederle-Vesterlund task. They alter output but not the per-piece quality of their work. To check the robustness and lasting nature of this kind of effect, a complementary Experiment 2 is designed. In this, major real-world unhappiness shocks – bereavement and family illness – are studied. The findings from (real-life) Experiment 2 match those from (random-assignment) Experiment 1.
pdf  study  economics  field-study  labor  psychology  social-psych  cog-psych  emotion  meaningness  productivity  econ-productivity  the-monster  happy-sad 
august 2017 by nhaliday
Is the U.S. Aggregate Production Function Cobb-Douglas? New Estimates of the Elasticity of Substitution∗
world-wide: http://www.socsci.uci.edu/~duffy/papers/jeg2.pdf
We find that IPP capital entirely explains the observed decline of the US labor share, which otherwise is secularly constant over the past 65 years for structures and equipment capital. The labor share decline simply reflects the fact that the US economy is undergoing a transition toward a larger IPP sector.
The Fall of the Labor Share and the Rise of Superstar Firms: http://www.nber.org/papers/w23396
The Decline of the U.S. Labor Share: https://www.brookings.edu/wp-content/uploads/2016/07/2013b_elsby_labor_share.pdf
Table 2 has industry disaggregation
Estimating the U.S. labor share: https://www.bls.gov/opub/mlr/2017/article/estimating-the-us-labor-share.htm

Why Workers Are Losing to Capitalists: https://www.bloomberg.com/view/articles/2017-09-20/why-workers-are-losing-to-capitalists
Automation and offshoring may be conspiring to reduce labor's share of income.
pdf  study  economics  growth-econ  econometrics  usa  data  empirical  analysis  labor  capital  econ-productivity  manifolds  magnitude  multi  world  🎩  piketty  econotariat  compensation  inequality  winner-take-all  org:ngo  org:davos  flexibility  distribution  stylized-facts  regularizer  hmm  history  mostly-modern  property-rights  arrows  invariance  industrial-org  trends  wonkish  roots  synthesis  market-power  efficiency  variance-components  business  database  org:gov  article  model-class  models  automation  nationalism-globalism  trade  news  org:mag  org:biz  org:bv  noahpinion  explanation  summary  methodology  density  polarization  map-territory  input-output 
july 2017 by nhaliday
Seven charts that show how the developed world is losing its edge
Savings China’s gross savings (at market exchange rates) are nearly as large as those of the US and EU combined. China saves almost half of its national income. This extraordinarily high share is likely to fall but that decline is set to be gradual, since Chinese households are likely to remain frugal and the share of profits in national income is likely to remain high.

80% of the US had no real increase in income 2005 to 2012-2014

Time to worry about the American consumer?: https://ftalphaville.ft.com/2017/08/03/2192172/time-to-worry-about-the-american-consumer/
Two basic ways to spend more money: you can earn more and save the same, or you can earn the same and save less. Newly revised data from the Bureau of Economic Analysis show that American consumers have spent the past two years embracing option 2. The average American now saves about 35 per cent less than in 2015:


Not since the beginning of 2008 have Americans saved so little — and that’s before accounting for inflation. It could be a sign of trouble ahead.

this seems not good

China's Financial Debt: Everything You Know Is Wrong: http://www.unz.com/article/chinas-financial-debt-everything-you-know-is-wrong/
As China Piles on Debt, Consumers Seek a Piece of the Action: https://www.nytimes.com/2017/09/25/business/china-debt-consumers.html
news  org:rec  org:anglo  org:biz  data  analysis  visualization  let-me-see  world  developing-world  china  asia  sinosphere  convergence  europe  usa  the-great-west-whale  economics  growth-econ  econ-metrics  econ-productivity  stagnation  populism  wealth-of-nations  wealth  time-preference  temperance  demographics  population  internet  compensation  britain  germanic  gallic  nordic  mediterranean  EU  patience  multi  contrarianism  malaise  rot  great-powers  debt  monetary-fiscal  time-series  twitter  social  commentary  gnon  mena4  🐸  backup  pic 
july 2017 by nhaliday
Does Management Matter? Evidence from India
We have shown that management matters, with improvements in management practices improving plant-level outcomes. One response from economists might then be to argue that poor management can at most be a short-run problem, since in the long run better managed firms should take over the market. Yet many of our firms have been in business for 20 years and more.

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

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

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


However, when we reverse the employment statistic–only ~15% of Indians work for a firm compared to approximately 90% of US workers we see the problem. Entrepreneurship in India isn’t a choice, it’s a requirement. Indian entrepreneurship is a consequence of India’s failed economy. As a I wrote in my Cato paper with Goldschlag, less developed countries in general, not just India, have more entrepreneurs.


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

blames colonialism, idk, might have contributed

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

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

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


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

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

study  economics  broad-econ  growth-econ  econometrics  field-study  india  asia  pseudoE  management  industrial-org  cultural-dynamics  institutions  trust  intervention  coordination  cohesion  n-factor  kinship  orient  multi  twitter  social  commentary  econotariat  spearhead  wealth-of-nations  pop-diff  pdf  scale  gender  leviathan  econ-productivity  marginal-rev  world  developing-world  comparison  usa  business  network-structure  labor  social-structure  lived-experience  entrepreneurialism  hmm  microfoundations  culture  corruption  anomie  crooked  human-capital  technocracy  government  data  crime  criminology  north-weingast-like  news  org:rec  org:biz  org:anglo  politics  populism  incentives  transportation  society  GT-101  integrity  🎩  endo-exo  cooperate-defect  ethics  attaq  selection  europe  the-great-west-whale  germanic  correlation  altruism  outcome-risk  uncertainty  impetus  longitudinal  civic  public-goodish  organizing  endogenous-exogenous 
july 2017 by nhaliday
Total factor productivity - Wikipedia
The equation below (in Cobb–Douglas form) represents total output (Y) as a function of total-factor productivity (A), capital input (K), labor input (L), and the two inputs' respective shares of output (α and β are the share of contribution for K and L respectively). An increase in either A, K or L will lead to an increase in output.

Y = A x K^α x L^β

Technology growth and efficiency are regarded as two of the biggest sub-sections of Total Factor Productivity, the former possessing "special" inherent features such as positive externalities and non-rivalness which enhance its position as a driver of economic growth.

Total Factor Productivity is often seen as the real driver of growth within an economy and studies reveal that whilst labour and investment are important contributors, Total Factor Productivity may account for up to 60% of growth within economies.[2]

It has been shown that there is a historical correlation between TFP and energy conversion efficiency.[3] Also, it has been found that integration (among firms for example) has a casual positive impact on total factor productivity. [4]
concept  economics  growth-econ  econ-productivity  econ-metrics  wiki  reference  energy-resources  biophysical-econ  the-world-is-just-atoms  efficiency  labor  capital  atoms  human-capital  innovation  technology  🎩  distribution  variance-components  input-output 
june 2017 by nhaliday
Economic Growth in Ancient Greece | pseudoerasmus
Maybe land-and-dung expansion does not really require a fancy institutional explanation. Territory expanded, land yields rose, and people have always traded their surpluses. Why invoke “inclusive institutions”, as Ober effectively does, for something so mundane ? Perhaps the seminal cultural accomplishments of classical Greece bias some of us to look for “special” causes of the expansion.

Note, this is not an argument that political economy or “institutions” play no role in the rise and decline of economies. But in this particular case, so little seems established about the descriptive statistics, let alone the “growth accounting”, of Greek economic expansion in 800-300 BCE that it’s premature to be speculating about its institutional causes.
econotariat  pseudoE  broad-econ  commentary  books  review  economics  growth-econ  history  iron-age  mediterranean  the-classics  critique  institutions  egalitarianism-hierarchy  malthus  demographics  population  density  wealth  wealth-of-nations  political-econ  divergence  europe  the-great-west-whale  data  archaeology  measurement  scale  agriculture  econ-productivity  efficiency  article  gregory-clark  galor-like  long-short-run  medieval  nordic  technology  north-weingast-like  democracy  roots  summary  endo-exo  input-output  walter-scheidel  endogenous-exogenous  uncertainty 
june 2017 by nhaliday
How important was colonial trade for the rise of Europe? | Economic Growth in History
The latter view became the orthodoxy among economists and economic historians after Patrick O’Brien’s 1982 paper, which in one of many of Patrick’s celebrated phrases, claims that “”the periphery vs peripheral” for Europe. He concludes the paper by writing:

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

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

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

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

The British Empire was cruel, rapacious and racist. But contrary to what Shashi Tharoor writes in An Era Of Darkness, the fault for India’s miseries lies upon itself.

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


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

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

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

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


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

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

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

but some of the Asian wage data (especialy India) have laughably small samples (see Broadberry & Gupta)

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

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


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


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


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

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

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


There was a realization in Britain that colonies were not particularly economically beneficial to the home economy. … [more]
econotariat  broad-econ  article  history  early-modern  age-of-discovery  europe  the-great-west-whale  divergence  conquest-empire  economics  growth-econ  roots  trade  endo-exo  patho-altruism  expansionism  multi  twitter  social  discussion  gnon  unaffiliated  right-wing  🎩  attaq  albion  journos-pundits  mokyr-allen-mccloskey  cjones-like  big-picture  chart  news  org:mag  org:foreign  marginal-rev  wealth-of-nations  britain  india  asia  cost-benefit  leviathan  antidemos  religion  islam  class  pop-structure  nationalism-globalism  authoritarianism  property-rights  agriculture  econ-metrics  data  scale  government  industrial-revolution  pdf  regularizer  pseudoE  measurement  volo-avolo  time-series  anthropology  macro  sapiens  books  review  summary  counterfactual  stylized-facts  critique  heavy-industry  pre-ww2  study  technology  energy-resources  labor  capitalism  debate  org:data  org:lite  commentary  usa  piketty  variance-components  automation  west-hunter  scitariat  visualization  northeast  the-south  aphorism  h2o  fluid 
june 2017 by nhaliday
The Data We Have vs. the Data We Need: A Comment on the State of the “Divergence” Debate (Part I) | The NEP-HIS Blog
Maybe as reaction to Pomeranz, the Great Divergence gets dated earlier & earlier & earlier on the slimmest evidence. Next: Pangaea breakup
I think it's a bit out of control, the urge to keep bringing the roots of the great divergence earlier and earlier and earlier
@s8mb @antonhowes I am impatient w explanations which do not start w origination/adoption/diffusion technology as proximate cause
@s8mb @antonhowes in respect of which finance, market integration, & formal institutions all dead ends for divergence of West with the Rest
Are you more with Pomeranz that there's not major difference until c. 1750 or 1800, or do you put departure much earlier?
it's now beyond doubt established there was a major diff in living standards, state capacity, market integr+
between the most advanced regions of China and the most advanced regions of Europe, no doubt
@bswud +broadberry estimates evidence groupthink on matter (i.e., everyone wants to locate precursor to IR earlier and earlier) @antonhowes

The Little Divergence: https://pseudoerasmus.com/2014/06/12/the-little-divergence/
The Early Transformation of Britain's Economy: https://growthecon.com/blog/Britain-Shares/
There’s a nice working paper out by Patrick Wallis, Justin Colson, and David Chilosi called “Puncturing the Malthus Delusion: Structural Change in the British Economy before the Industrial Revolution, 1500-1800”. The big project they undertake here is to mine the probate inventories (along with several other sources) from Britain in this period to build up a picture of the rough allocation of workers across sectors. They do a very nice job of walking through their data sources, and the limitations, in the paper, so let me leave those details aside. In short, they use the reported occupations in wills to back out a picture of the sectoral structure, finding it consistent with other sources based on apprentice records, as well as prior estimates from specific years.

econotariat  commentary  broad-econ  growth-econ  divergence  history  early-modern  world  europe  the-great-west-whale  china  asia  sinosphere  comparison  chart  critique  measurement  debate  pseudoE  multi  wealth-of-nations  econ-metrics  twitter  social  discussion  lol  troll  rant  org:ngo  🎩  s:*  unaffiliated  occident  orient  article  cliometrics  economics  data  mostly-modern  japan  usa  india  anglo  pre-ww2  medieval  roots  path-dependence  revolution  stylized-facts  industrial-revolution  time-series  wealth  visualization  malthus  econ-productivity  technology  ideas  marginal  hari-seldon  flux-stasis  questions  agriculture  heavy-industry  labor  distribution  evidence 
june 2017 by nhaliday
My review of Robert Gordon's *Rise and Fall of American Growth* - Marginal REVOLUTION
And here is the “oops” aspect of the book:

What Gordon neglects to mention, however, is that he is also the author of a 2003 Brookings essay titled “Exploding Productivity Growth,” in which he optimistically predicted that productivity in the United States would grow by 2.2 to 2.8 percent for the next two decades, most likely averaging 2.5 percent a year; he even suggested that a three percent rate was possible.

…Gordon offers a brief history of the evolution of his views on productivity. Yet he does not mention the 2003 essay, nor does he explain why he has changed his mind so dramatically. He also fails to cite other proponents of the stagnation thesis, even though…their work predates his book.
econotariat  marginal-rev  books  review  critique  commentary  news  org:mag  org:foreign  economics  growth-econ  econ-productivity  stagnation  malaise  zeitgeist  rot  regularizer  speedometer  innovation  🎩 
june 2017 by nhaliday
The Agricultural Basis of Comparative Development
This article shows, in a two-sector Malthusian model of endogenous population growth, that output per capita, population density, and industrialization depend upon the labor intensity of agricultural production. Because the diminishing returns to labor are less pronounced, high labor intensity (as in rice production) leads not only to a larger population density but also to lower output per capita and a larger share of labor in agriculture. Agronomic and historical evidence confirm that there are distinct, inherent differences between rice and wheat production. A calibration of the model shows that a relatively small difference in labor intensity in agriculture can account for a large portion of the observed differences in industrialization, output per capita, and labor productivity between Asia and Europe prior to the Industrial Revolution. Significantly, these differences can be explained even though sector-level total factor productivity levels and the efficiency of factor markets are held constant in the two regions.

INDUSTRIOUS PEASANTS IN EAST AND WEST: MARKETS, TECHNOLOGY, AND FAMILY STRUCTURE IN JAPANESE AND WESTERN EUROPEAN AGRICULTURE: http://sci-hub.tw/http://onlinelibrary.wiley.com/doi/10.1111/j.1467-8446.2011.00331.x/abstract
pdf  study  economics  growth-econ  broad-econ  pseudoE  cliometrics  world  developing-world  wealth-of-nations  econ-productivity  divergence  labor  agriculture  environment  🎩  🌞  pop-diff  multi  piracy  comparison  europe  the-great-west-whale  asia  japan  sinosphere  orient  microfoundations  flexibility  marginal  geography  explanans  occident  china  scale  fluid  malthus  efficiency  models 
june 2017 by nhaliday
Have Productivity Levels Converged? Productivity Growth, Convergence, and Welfare in the Very Long Run
Economists believe that because technology is a public good national productivity levels should "converge."

lol, Brad Delong's gonna be confused for a long time


Holding constant 1870 per capita income, nations that had Protestant religious establishments in 1870 have 1979 per capita incomes more than one-third higher than do nations that had Catholic establishments. Interpretation of this fact is very difficult, but it does suggest that Max Weber [I9051 (1958) may have something to teach us about the forces that have determined growth in the industrial West over the past century.

study  economics  econotariat  growth-econ  history  early-modern  cliometrics  econometrics  econ-productivity  divergence  wealth-of-nations  religion  christianity  protestant-catholic  chart  world  developing-world  europe  the-great-west-whale  westminster  broad-econ  n-factor  convergence  public-goodish  microfoundations  pop-diff  labor  human-capital  big-peeps 
may 2017 by nhaliday
There Is No Such Thing as Decreasing Returns to Scale — Confessions of a Supply-Side Liberal
Besides pedagogical inertia—enforced to some extent by textbook publishers—I am not quite sure what motivates the devotion in so many economics curricula to U-shaped average cost curves. Let me make one guess: there is a desire to explain why firms are the size they are rather than larger or smaller. To my mind, such an explanation should proceed in one of three ways, appropriate to three different situations.
econotariat  economics  micro  plots  scale  marginal  industrial-org  business  econ-productivity  efficiency  cost-benefit  explanation  critique  clarity  intricacy  curvature  convexity-curvature  nonlinearity  input-output 
may 2017 by nhaliday
GDP Per Capita Growth -- 1980s Growth Patterns & Economic Policy | National Review
When we compare the post-2000 era to 1947–2000, a huge divergence in GDP growth per capita emerges. Between 1947 and 2000, inflation-adjusted GDP per capita grew a little over 2 percent a year. Since 2000, it has grown at about 0.9 percent a year. So, GDP growth per person has more than halved since Y2K. This slowdown in per capita GDP growth is unprecedented in the postwar era. In no 15-year period between 1947 and 2000 did average annual GDP growth per capita fall below 1.5 percent, so a 15-year stretch of under 1 percent is a radical departure from recent history.
news  org:mag  right-wing  rhetoric  wonkish  trends  stagnation  malaise  economics  growth-econ  policy  econ-metrics  econ-productivity  rot  speedometer 
may 2017 by nhaliday
Housing Constraints and Spatial Misallocation
We quantify the amount of spatial misallocation of labor across US cities and its aggregate costs. Misallocation arises because high productivity cities like New York and the San Francisco Bay Area have adopted stringent restrictions to new housing supply, effectively limiting the number of workers who have access to such high productivity. Using a spatial equilibrium model and data from 220 metropolitan areas we find that these constraints lowered aggregate US growth by more than 50% from 1964 to 2009.
pdf  study  economics  growth-econ  econ-productivity  labor  usa  urban  housing  incentives  supply-demand  variance-components  roots  chart  🎩  stagnation  history  mostly-modern  wonkish  policy  data  econometrics  rent-seeking  urban-rural 
may 2017 by nhaliday
Concentration and Growth | Dietrich Vollrath
Ultimately, and this is my impression, not some kind of established fact, concentration likely lowers innovative activity. Put it this way, the null hypothesis should probably be that concentration lowers innovation. An individual industry needs to provide evidence they are on the “right side of the curve” in the first AAH figure to believe concentration would be good for productivity growth in the long run.
econotariat  commentary  links  economics  growth-econ  trends  market-power  business  industrial-org  flexibility  innovation  malaise  stagnation  econ-productivity  madisonian  rent-seeking  competition  correlation  frontier  stylized-facts  chart  🎩  entrepreneurialism  rot  scale  curvature  corporation  convexity-curvature  nonlinearity 
may 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/
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
org:ngo  data  analysis  visualization  inequality  winner-take-all  compensation  usa  distribution  class  money  wonkish  multi  economics  labor  trade  trends  nationalism-globalism  malaise  org:econlib  econotariat  scott-sumner  rhetoric  polarization  regularizer  stylized-facts  article  history  mostly-modern  cold-war  econ-metrics  piketty  news  org:lite  journos-pundits  wiki  reference  🎩  chart  macro  org:rec  org:data  current-events  wealth  within-group  org:mag  left-wing  mobility  maps  dynamic  coming-apart  hsu  scitariat  finance  tech  sv  california  nyc  the-west  managerial-state  madisonian  s-factor  envy  nitty-gritty  education  human-capital  time-series  stagnation  zeitgeist  econ-productivity  realness 
may 2017 by nhaliday
No, U.S. Manufacturing Isn't Really Booming - Bloomberg View
Current manufacturing output is 41 percent higher than back in the happy days of 1997. That doesn't sound like a decline!

There's a catch, though. As economist Susan N. Houseman of the W.E. Upjohn Institute for Employment Research in Kalamazoo, Michigan, points out, about half of the growth in U.S. manufacturing output since 1997 has been in just one sector: computer and electronics manufacturing.

news  org:mag  org:biz  org:bv  economics  heavy-industry  usa  data  trends  labor  contrarianism  multi  org:data  poll  descriptive  econ-productivity  stagnation  time-series 
april 2017 by nhaliday
Polygyny, Fertility, and Savings
For reasonable parameter values, I find that banning polygyny decreases fertility by 40 percent, increases savings by 70 percent, and increases output per capita by 170 percent.

also interesting:
Table A1 shows that almost all men do marry by age 50 in these countries. Thus the common perception that two wives for some men means no wives for equally many men is wrong. Since the sex ratios in most countries do not deviate much from one, one may wonder how such a high incidence of polygyny is possible. The answer to this puzzle lies in extremely high spousal age gaps coupled with high population growth (Tertilt 2004).7 Table 1 shows that the average age gap at first marriage is almost seven years in highly polygynous countries. Annual population growth in this area is 2.7 percent, which amounts to a 20 percent increase in cohort size over seven years. On average, each man could therefore marry 1.2 wives, or, put differently, 20 percent of the population could marry two wives.8

AFRICAN POLYGAMY: PAST AND PRESENT: http://voxeu.org/article/african-polygamy-past-and-present
This has led the authors to conclude that Africa’s history of the slave trades is the primary explanation for why today polygyny is much more prevalent in West Africa than in East Africa.
pdf  study  economics  growth-econ  world  developing-world  africa  incentives  social-structure  fertility  time-preference  temperance  anthropology  sociology  econ-productivity  intervention  effect-size  demographics  gender  age-generation  life-history  broad-econ  capitalism  patience  wealth-of-nations  multi  org:ngo  article  econotariat  cliometrics  history  age-of-discovery  roots  society  path-dependence  maps  data  conquest-empire  microfoundations  twitter  social  commentary  scitariat  west-hunter  genetic-load  genetics  population-genetics  🎩 
april 2017 by nhaliday
The Causal Impact of Human Capital on R&D and Productivity: Evidence from the United States
We instrument our measures of schooling by using the variation in compulsory schooling laws and differences in mobilization rates in WWII, which we relate to the education benefits provided by the GI Bill Act (1944). This novel instrument provides a clean source of variation in the costs of attending college. Two-stage least squared regressions find no effect of the share of population with secondary schooling on outcomes such as n R&D per worker or TFP growth. On the other hand, the share of population with tertiary education has a significant effect on both R&D per worker or TFP growth.
pdf  study  economics  growth-econ  education  higher-ed  human-capital  causation  endo-exo  natural-experiment  usa  history  mostly-modern  econ-productivity  labor  econometrics  intervention  stylized-facts  world-war  supply-demand  policy  wonkish  innovation  input-output  evidence-based  endogenous-exogenous 
april 2017 by nhaliday
What Drives Differences in Management?
Partnering with the Census we implement a new survey of “structured” management practices in 32,000 US manufacturing plants. We find an enormous dispersion of management practices across plants, with 40% of this variation across plants within the same firm. This management variation accounts for about a fifth of the spread of productivity, a similar fraction as that accounted for by R&D, and twice as much as explained by IT. We find evidence for four “drivers” of management: competition, business environment, learning spillovers and human capital. Collectively, these drivers account for about a third of the dispersion of structured management practices.
study  economics  growth-econ  econ-productivity  management  variance-components  roots  competition  human-capital  distribution  heavy-industry  econometrics  industrial-org  usa  organizing 
april 2017 by nhaliday
Annotating Greg Cochran’s interview with James Miller
opinion of Scott and Hanson: https://westhunt.wordpress.com/2017/04/05/interview-2/#comment-90238
Greg's methodist: https://westhunt.wordpress.com/2017/04/05/interview-2/#comment-90256
You have to consider the relative strengths of Japan and the USA. USA was ~10x stronger, industrially, which is what mattered. Technically superior (radar, Manhattan project). Almost entirely self-sufficient in natural resources. Japan was sure to lose, and too crazy to quit, which meant that they would lose after being smashed flat.
There’s a fairly common way of looking at things in which the bad guys are not at fault because they’re bad guys, born that way, and thus can’t help it. Well, we can’t help it either, so the hell with them. I don’t think we had to respect Japan’s innate need to fuck everybody in China to death.

2nd part: https://pinboard.in/u:nhaliday/b:9ab84243b967

some additional things:
- political correctness, the Cathedral and the left (personnel continuity but not ideology/value) at start
- joke: KT impact = asteroid mining, every mass extinction = intelligent life destroying itself
- Alawites: not really Muslim, women liberated because "they don't have souls", ended up running shit in Syria because they were only ones that wanted to help the British during colonial era
- solution to Syria: "put the Alawites in NYC"
- Zimbabwe was OK for a while, if South Africa goes sour, just "put the Boers in NYC" (Miller: left would probably say they are "culturally incompatible", lol)
- story about Lincoln and his great-great-great-grandfather
- skepticism of free speech
- free speech, authoritarianism, and defending against the Mongols
- Scott crazy (not in a terrible way), LW crazy (genetics), ex.: polyamory
- TFP or microbio are better investments than stereotypical EA stuff
- just ban AI worldwide (bully other countries to enforce)
- bit of a back-and-forth about macroeconomics
- not sure climate change will be huge issue. world's been much warmer before and still had a lot of mammals, etc.
- he quite likes Pseudoerasmus
- shits on modern conservatism/Bret Stephens a bit

- mentions Japan having industrial base a tenth the size of the US's and no chance of winning WW2 around 11m mark
- describes himself as "fairly religious" around 20m mark
- 27m30s: Eisenhower was smart, read Carlyle, classical history, etc.

but was Nixon smarter?: https://www.gnxp.com/WordPress/2019/03/18/open-thread-03-18-2019/
The Scandals of Meritocracy. Virtue vs. competence. Would you rather have a boss who is evil but competent, or good but incompetent? The reality is you have to balance the two. Richard Nixon was probably smarter that Dwight Eisenhower in raw g, but Eisenhower was probably a better person.
org:med  west-hunter  scitariat  summary  links  podcast  audio  big-picture  westminster  politics  culture-war  academia  left-wing  ideology  biodet  error  crooked  bounded-cognition  stories  history  early-modern  africa  developing-world  death  mostly-modern  deterrence  japan  asia  war  meta:war  risk  ai  climate-change  speculation  agriculture  environment  prediction  religion  islam  iraq-syria  gender  dominant-minority  labor  econotariat  cracker-econ  coalitions  infrastructure  parasites-microbiome  medicine  low-hanging  biotech  terrorism  civil-liberty  civic  social-science  randy-ayndy  law  polisci  government  egalitarianism-hierarchy  expression-survival  disease  commentary  authoritarianism  being-right  europe  nordic  cohesion  heuristic  anglosphere  revolution  the-south  usa  thinking  info-dynamics  yvain  ssc  lesswrong  ratty  subculture  values  descriptive  epistemic  cost-disease  effective-altruism  charity  econ-productivity  technology  rhetoric  metameta  ai-control  critique  sociology  arms  paying-rent  parsimony  writing  realness  migration  eco 
april 2017 by nhaliday
The Geography of U.S. Productivity - The Atlantic
America's Most and Least Distressed Cities: https://www.citylab.com/equity/2017/09/distressed-communities/541044/
The large parts of America left behind by today's economy: https://www.axios.com/americas-fractured-economic-well-being-2488460340.html
Key findings:
- New jobs are clustered in the economy's best-off places, leaving one of every four new jobs for the bottom 60% of zip codes.
- 57% of the national rise in business establishments and 52% of employment growth from 2011-2015 were in prosperous areas.
- Most of today's distressed communities have seen zero net gains in employment and business establishment since 2000. In fact, more than half have seen net losses on both fronts.
- Half of adults living in distressed zip codes are attempting to find gainful employment in the modern economy armed with only a high school education at best.
- The healthier the economy, the healthier the person — people in distressed communities die five years earlier.
news  org:mag  data  usa  maps  economics  trends  econ-productivity  tech  sv  the-west  northeast  nyc  urban  energy-resources  heavy-industry  california  stagnation  current-events  polarization  within-group  geography  multi  marginal  inequality  org:lite  analysis  visualization  org:ngo  white-paper  summary  wonkish  chart  urban-rural 
april 2017 by nhaliday
The United States achieved a 2.0 percent average annual growth rate of real GDP per capita between 1891 and 2007. This paper predicts that growth in the 25 to 40 years after 2007 will be much slower, particularly for the great majority of the population. Future growth will be 1.3 percent per annum for labor productivity in the total economy, 0.9 percent for output per capita, 0.4 percent for real income per capita of the bottom 99 percent of the income distribution, and 0.2 percent for the real disposable income of that group.

The primary cause of this growth slowdown is a set of four headwinds, all of them widely recognized and uncontroversial. Demographic shifts will reduce hours worked per capita, due not just to the retirement of the baby boom generation but also as a result of an exit from the labor force both of youth and prime-age adults. Educational attainment, a central driver of growth over the past century, stagnates at a plateau as the U.S. sinks lower in the world league tables of high school and college completion rates. Inequality continues to increase, resulting in real income growth for the bottom 99 percent of the income distribution that is fully half a point per year below the average growth of all incomes. A projected long-term increase in the ratio of debt to GDP at all levels of government will inevitably lead to more rapid growth in tax revenues and/or slower growth in transfer payments at some point within the next several decades.

There is no need to forecast any slowdown in the pace of future innovation for this gloomy forecast to come true, because that slowdown already occurred four decades ago. In the eight decades before 1972 labor productivity grew at an average rate 0.8 percent per year faster than in the four decades since 1972. While no forecast of a future slowdown of innovation is needed, skepticism is offered here, particularly about the techno-optimists who currently believe that we are at a point of inflection leading to faster technological change. The paper offers several historical examples showing that the future of technology can be forecast 50 or even 100 years in advance and assesses widely discussed innovations anticipated to occur over the next few decades, including medical research, small robots, 3-D printing, big data, driverless vehicles, and oil-gas fracking.

keep in mind, "the world is just atoms" and I think I know some things that Robert J Gordon doesn't
pdf  study  economics  growth-econ  prediction  big-picture  cliometrics  technology  innovation  stagnation  malaise  🎩  econ-productivity  history  mostly-modern  econ-metrics  demographics  education  inequality  monetary-fiscal  debt  government  labor  pessimism  🔬  stylized-facts  huge-data-the-biggest  zero-positive-sum  usa  automation  winner-take-all  murray  energy-resources  the-world-is-just-atoms  trends  current-events  broad-econ  info-dynamics  chart  nihil  zeitgeist  rot  the-bones  cjones-like  speedometer  whiggish-hegelian  flux-stasis  mokyr-allen-mccloskey  microfoundations 
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.
study  spearhead  garett-jones  economics  growth-econ  history  cliometrics  econometrics  institutions  biodet  migration  roots  culture  anthropology  society  🎩  path-dependence  🌞  sociology  hive-mind  stylized-facts  broad-econ  assimilation  chart  biophysical-econ  cultural-dynamics  wealth-of-nations  s:*  pseudoE  political-econ  multi  econotariat  canada  north-weingast-like  n-factor  individualism-collectivism  kinship  maps  world  data  modernity  occident  microfoundations  alesina  labor  contrarianism  trade  nationalism-globalism  news  org:mag  org:anglo  albion  rhetoric  econ-productivity  comparison  analogy  elite  vampire-squid  org:davos  china  asia  branches  hari-seldon 
march 2017 by nhaliday
Migrants and the Making of America: The Short- and Long-Run Effects of Immigration during the Age of Mass Migration*
The long-run effects appear to arise from the persistence of sizeable short-run benefits, including earlier and more intensive industrialization, increased agricultural productivity, and more innovation.

The Political Economy of Immigration Restriction in the United States, 1890 to 1921: http://www.nber.org/chapters/c6577.pdf
A large segment of rural America was against open immigration at least by the first vote in 1897 and even in the first strongly contested vote in 1898. Why this was the case probably has more to do with the history of nativist sentiment in America than with the particulars of immigration restriction of concern here. It is important, however, that some parts of rural America were considerably less in favor of restriction than were others. Rural Minnesota, Wisconsin, Iowa, and Michigan can be easily contrasted with equally rural areas in Ohio, Indiana, and Kansas (see table 7.2). In general, those from countries whose populations were still emigrating at high rates voted to keep the door open, while the native born and those from countries that were not active sending regions did the nativity of constituencies, as they were in the cities.15 The South was firmly against open immigration, as were the Pacific region and most of the Mountain states. The 1915 and 1917 votes are similar to that in 1913 with an erosion of support in much of the Midwest and an increase in support in some large cities.


The industry results conform to the predictions regarding the roles of labor composition and product demand. In men’s clothing, which contained a large proportion of immigrants, wages were distinctly depressed in cities having an increase from 1899 to 1909 in the percentage of their populations that was foreign born. The decrease is substantial: a 1-percentage-point increase in the fraction of the city’s population that was foreign born decreased wages by about 1.5 to 3 percent. Foundries also show negative coefficients. Because foundries hired both skilled (native) and unskilled (foreign-born) workers (see table 7.5), the results are even more supportive of the view that immigration severely depressed the wages of less-skilled labor.
pdf  study  economics  migration  labor  growth-econ  cliometrics  usa  history  natural-experiment  path-dependence  long-short-run  🎩  regularizer  intervention  stylized-facts  agriculture  econ-productivity  innovation  heavy-industry  nationalism-globalism  broad-econ  assimilation  chart  microfoundations  pre-ww2  early-modern  mostly-modern  multi  article  political-econ  poll  values  policy  compensation  effect-size  branches  sentiment 
february 2017 by nhaliday
Information Processing: Greenspan now agrees with Soros; Galbraith interview and a calculation
Easy Question: What growth rate advantage (additional GDP growth rate per annum) would savage, unfettered markets need to generate to justify these occasional disasters?

Answer: an additional 0.1 percent annual GDP growth would be more than enough. That is, an unregulated economy whose growth rate was 0.1 percent higher would, even after paying for each 20 year crisis, be richer than the heavily regulated comparator which avoided the crises but had a lower growth rate.

Hard Question: would additional regulation decrease economic growth rates by that amount or more?

Unless you think you can evaluate the relative GDP growth effects of two different policy regimes with accuracy of better than 0.1 percent, then the intellectually honest answer to the policy question is: I don't know. No shouting, no shaking your fist, no lecturing other people, no writing op eds, just I don't know. Correct the things that are obviously stupid, but don't overstate your confidence level about additional policy changes.

(Note I'm aware that distributional issues are also important. In the most recent era gains went mostly to a small number of top earners whereas the cost of the bailout will be spread over the whole tax base.)

Wall St. lending to Main St. even as many decry Dodd-Frank: https://apnews.com/0e4ee980a46549908733afb2f6824def/wall-st-lending-main-st-even-many-decry-dodd-frank
hsu  scitariat  finance  investing  economics  money  commentary  links  tradeoffs  regulation  econ-metrics  complex-systems  cycles  risk  market-failure  cost-benefit  multi  org:ngo  econotariat  wonkish  trends  technology  stagnation  econ-productivity  growth-econ  data  article  chart  macro  news  trump  politics  policy  :/  current-events  cjones-like  events 
february 2017 by nhaliday
Considerations On Cost Disease | Slate Star Codex
ratty  yvain  ssc  economics  education  higher-ed  healthcare  efficiency  money  analysis  inequality  faq  trends  winner-take-all  multi  reddit  social  hn  commentary  data  visualization  rent-seeking  econotariat  2017  p:null  wonkish  malaise  cost-disease  news  org:mag  org:bv  noahpinion  org:biz  chart  zeitgeist  the-bones  housing  org:ngo  org:anglo  automation  labor  marginal-rev  scott-sumner  market-failure  gnon  counter-revolution  cracker-econ  techtariat  gray-econ  randy-ayndy  poast  list  links  supply-demand  government  policy  regulation  econ-productivity  planning  long-term  parenting 
february 2017 by nhaliday
Progressive Cities vs. Conservative States - The Atlantic
The dark side of cities: http://theweek.com/articles/689554/dark-side-cities
President Trump often paints Americans cities as either liberal elitist enclaves or crime-ridden hellholes. Meanwhile, cities' defenders praise their flourishing, dense, and diverse communities that thumb their nose at Trumpism.

But defenders of the city also go further: They argue that changing technology and the network effects of density all favor the creativity and innovation of diverse metropolises. In other words, cities are supposed to do better than other places, and everyone who doesn't live in one already should get moving. Cities dominate American society like never before because of what they did right, these promoters say.

But actually, cities succeeded because of what the country did wrong.

A small number of liberal urban clusters certainly do dominate America's economic output. Rates of productivity growth are higher in cities. And over the last few decades, rates of business and job creation during recoveries fell off a cliff in less-dense areas — but held stable in the most dense areas.

Yet the productivity growth rate and the GDP growth rate across the entire national economy slowed to near record lows as cities rose in prominence. Certainly, agglomeration effects and dense innovative cultural milieus have real economic value. But how much value compared to other forces is the question.

More to the point, rates of job and business creation in dense areas held stable as rural areas died. They didn't increase to compensate. Economic vibrancy and opportunity didn't move to the cities. They just drowned everywhere else, while cities became the economy's only remaining life rafts.
news  org:mag  class  urban  usa  trends  tribalism  politics  longform  culture-war  westminster  polarization  american-nations  homo-hetero  current-events  decentralized  cohesion  vampire-squid  exit-voice  class-warfare  zeitgeist  2016-election  geography  multi  rhetoric  contrarianism  trump  growth-econ  economics  econ-productivity  labor  policy  market-power  ideology  populism  inequality  winner-take-all  density  org:anglo  malaise  nihil  coming-apart  urban-rural 
february 2017 by nhaliday
Why Isn't the Whole World Developed? Lessons from the Cotton Mills
In 1910 one New England cotton textile operative performed as much work as 1.5 British, 2.3 German, and nearly 6 Greek, Japanese, Indian, or Chinese workers. Input substitution, and differences in technology, management, and workers' training or inherent abilities do not explain this. Instead local culture seems to have determined worker performance. Such differences, if widespread, would explain much of the international variation in wages. They also have important consequences for understanding labor migration, the choice of technique, and the sources of economic growth.
study  economics  history  growth-econ  cliometrics  human-capital  labor  econ-productivity  britain  usa  europe  comparison  anglo  discipline  pdf  gregory-clark  culture  industrial-revolution  world  spearhead  technology  northeast  mostly-modern  the-world-is-just-atoms  divergence  capitalism  biophysical-econ  homo-hetero  heavy-industry  broad-econ  pseudoE  wealth-of-nations  microfoundations 
january 2017 by nhaliday
Secular Stagnation? The Effect of Aging on Economic Growth in the Age of Automation
Several recent theories emphasize the negative effects of an aging population on economic growth, either because of the lower labor force participation and productivity of older workers or because aging will create an excess of savings over desired investment, leading to secular stagnation. We show that there is no such negative relationship in the data. If anything, countries experiencing more rapid aging have grown more in recent decades. We suggest that this counterintuitive finding might reflect the more rapid adoption of automation technologies in countries undergoing more pronounced demographic changes, and provide evidence and theoretical underpinnings for this argument.
pdf  study  economics  growth-econ  stagnation  trends  demographics  automation  acemoglu  contrarianism  correlation  econometrics  econ-productivity  malaise  hmm  age-generation  speedometer  japan  asia  fertility  modernity  input-output 
january 2017 by nhaliday
The Mythological Machinations of The Compensation/Productivity Gap – New River Investments – Medium
We in fact find that the surplus productivity growth that did not flow to the corporate sector, or even to the very rich, but in fact flowed to the very poor.

@PatrickIber an old chestnut. statistical illusion. wages deflated by CPI. productivity/output deflated by PPI or output deflator

pseudoerasmus: "would have voted for Bernie were I an american"
org:med  data  analysis  contrarianism  econ-productivity  economics  trends  macro  supply-demand  compensation  distribution  inequality  winner-take-all  malaise  regularizer  money  stagnation  multi  econotariat  pseudoE  broad-econ  twitter  social  commentary  discussion  debate  critique  growth-econ  econometrics  econ-metrics  history  mostly-modern  labor  intricacy  clarity  politics  2016-election  piketty  stylized-facts  vampire-squid  gotchas  time-series 
january 2017 by nhaliday
« earlier      
per page:    204080120160

bundles : econ

related tags

-_-  2016-election  :/  ability-competence  academia  acemoglu  africa  age-generation  age-of-discovery  aging  agri-mindset  agriculture  ai  ai-control  albion  alesina  alignment  alt-inst  altruism  amazon  american-nations  analogy  analysis  anarcho-tyranny  anglo  anglosphere  anomie  anonymity  anthropology  antidemos  antiquity  aphorism  archaeology  architecture  aristos  arms  arrows  article  asia  assimilation  atoms  attaq  attention  audio  authoritarianism  automation  autor  axelrod  axioms  backup  barons  behavioral-econ  behavioral-gen  being-becoming  being-right  big-peeps  big-picture  biodet  biophysical-econ  biotech  books  borjas  bounded-cognition  branches  brexit  britain  broad-econ  buddhism  business  business-models  c:**  calculator  california  canada  canon  capital  capitalism  career  causation  characterization  charity  chart  china  christianity  civic  civil-liberty  civilization  cjones-like  clarity  class  class-warfare  climate-change  cliometrics  coalitions  cocktail  cog-psych  cohesion  cold-war  collaboration  coming-apart  commentary  communism  comparison  compensation  competition  complement-substitute  complex-systems  composition-decomposition  concept  conceptual-vocab  conquest-empire  context  contracts  contrarianism  control  convergence  convexity-curvature  cooperate-defect  coordination  corporation  correlation  corruption  cost-benefit  cost-disease  counter-revolution  counterfactual  courage  cracker-econ  creative  crime  criminal-justice  criminology  critique  crooked  crosstab  cryptocurrency  cs  cultural-dynamics  culture  culture-war  current-events  curvature  cycles  cynicism-idealism  darwinian  data  database  death  debate  debt  decentralized  decision-making  defense  definite-planning  definition  democracy  demographics  density  descriptive  deterrence  developing-world  dignity  dimensionality  diogenes  dirty-hands  discipline  discovery  discrimination  discussion  disease  distribution  divergence  diversity  dominant-minority  dropbox  drugs  duplication  dynamic  early-modern  easterly  eastern-europe  econ-metrics  econ-productivity  econometrics  economics  econotariat  education  effect-size  effective-altruism  efficiency  egalitarianism-hierarchy  elections  elite  embedded-cognition  embeddings  embodied  embodied-cognition  emotion  empirical  endo-exo  endogenous-exogenous  energy-resources  engineering  enlightenment-renaissance-restoration-reformation  entrepreneurialism  environment  envy  epistemic  equilibrium  error  essay  estimate  ethanol  ethics  ethnocentrism  EU  europe  events  evidence  evidence-based  examples  exit-voice  expansionism  explanans  explanation  exposition  expression-survival  externalities  faq  farmers-and-foragers  fertility  feudal  field-study  film  finance  flexibility  fluid  flux-stasis  focus  food  foreign-policy  frontier  futurism  gallic  galor-like  game-theory  garett-jones  gender  gender-diff  general-survey  genetic-load  genetics  geography  germanic  giants  gnon  gnosis-logos  gnxp  gotchas  government  gray-econ  great-powers  gregory-clark  group-level  group-selection  growth-econ  GT-101  guilt-shame  h2o  hanson  happy-sad  hard-tech  hari-seldon  harvard  healthcare  heavy-industry  heuristic  higher-ed  history  hive-mind  hmm  hn  homo-hetero  honor  housing  hsu  huge-data-the-biggest  human-capital  hypocrisy  ideas  identity  identity-politics  ideology  illusion  impact  impetus  incentives  india  individualism-collectivism  industrial-org  industrial-revolution  inequality  info-dynamics  info-econ  infrastructure  inhibition  innovation  input-output  insight  instinct  institutions  integration-extension  integrity  intel  interdisciplinary  interests  internet  intervention  interview  intricacy  invariance  investing  iq  iraq-syria  iron-age  is-ought  islam  iteration-recursion  japan  jargon  journos-pundits  judaism  justice  kinship  knowledge  korea  krugman  kumbaya-kult  labor  larry-summers  latin-america  law  left-wing  legacy  legibility  lens  lesswrong  let-me-see  letters  leviathan  life-history  links  list  literature  lived-experience  lol  long-short-run  long-term  longform  longitudinal  low-hanging  machiavelli  macro  madisonian  magnitude  malaise  male-variability  malthus  management  managerial-state  manifolds  map-territory  maps  marginal  marginal-rev  market-failure  market-power  markets  martial  matching  math  meaningness  measurement  media  medicine  medieval  mediterranean  memes(ew)  MENA  mena4  meta:science  meta:war  metameta  methodology  metric-space  metrics  micro  microfoundations  migration  military  mobility  model-class  models  modernity  mokyr-allen-mccloskey  moments  monetary-fiscal  money  morality  mostly-modern  motivation  multi  murray  myth  n-factor  nascent-state  nationalism-globalism  natural-experiment  neocons  network-structure  news  nibble  nihil  nitty-gritty  nl-and-so-can-you  no-go  noahpinion  noble-lie  nonlinearity  nordic  north-weingast-like  northeast  novelty  nyc  objective-measure  occident  old-anglo  optimism  optimization  order-disorder  org:anglo  org:biz  org:bv  org:data  org:davos  org:econlib  org:edu  org:foreign  org:gov  org:lite  org:local  org:mag  org:med  org:ngo  org:popup  org:rec  org:sci  organizing  orient  orwellian  outcome-risk  p:null  parasites-microbiome  parenting  parsimony  path-dependence  patho-altruism  patience  paul-romer  paying-rent  pdf  peace-violence  people  personality  pessimism  phalanges  pharma  philosophy  pic  piketty  piracy  planning  plots  poast  podcast  polanyi-marx  polarization  policy  polis  polisci  political-econ  politics  poll  pop-diff  pop-structure  population  population-genetics  populism  postrat  pre-ww2  prediction  prepping  preprint  presentation  privacy  pro-rata  productivity  profile  property-rights  proposal  protestant-catholic  prudence  pseudoE  psych-architecture  psychiatry  psychology  psychometrics  public-goodish  putnam-like  q-n-a  qra  quality  quantitative-qualitative  questions  quotes  race  randy-ayndy  ranking  rant  rationality  ratty  reading  real-nominal  realness  realpolitik  reason  reddit  redistribution  reference  reflection  regression  regression-to-mean  regularizer  regulation  reinforcement  religion  rent-seeking  responsibility  review  revolution  rhetoric  rhythm  right-wing  rindermann-thompson  risk  ritual  roots  rot  russia  s-factor  s:*  sapiens  scale  science  scifi-fantasy  scitariat  scott-sumner  securities  selection  self-control  self-report  sentiment  sex  shift  signaling  similarity  simulation  sinosphere  sleep  slides  soccer  social  social-capital  social-norms  social-psych  social-science  social-structure  society  sociology  spearhead  speculation  speedometer  spock  sports  spreading  ssc  stackex  stagnation  stanford  startups  state-of-art  statesmen  status  steel-man  stereotypes  stock-flow  stories  strategy  straussian  street-fighting  study  studying  stylized-facts  subculture  success  sulla  summary  supply-demand  survey  sv  synthesis  systematic-ad-hoc  tails  taxes  teaching  tech  technocracy  technology  techtariat  temperance  temperature  terrorism  texas  the-basilisk  the-bones  the-classics  the-great-west-whale  the-monster  the-south  the-west  the-world-is-just-atoms  theos  thiel  things  thinking  threat-modeling  thucydides  thurston  time  time-preference  time-series  time-use  tools  top-n  toxoplasmosis  traces  track-record  trade  tradeoffs  transportation  trends  tribalism  trivia  troll  trump  trust  truth  tutoring  twitter  unaffiliated  uncertainty  unintended-consequences  universalism-particularism  urban  urban-rural  us-them  usa  values  vampire-squid  variance-components  venture  video  visualization  vitality  volo-avolo  walls  walter-scheidel  war  water  wealth  wealth-of-nations  welfare-state  west-hunter  westminster  whiggish-hegelian  white-paper  wiki  winner-take-all  wisdom  within-group  wonkish  working-stiff  world  world-war  writing  X-not-about-Y  yvain  zeitgeist  zero-positive-sum  🌞  🎓  🎩  🐸  👽  🔬 

Copy this bookmark: