nhaliday + input-output   59

Theory of Self-Reproducing Automata - John von Neumann
Fourth Lecture: THE ROLE OF HIGH AND OF EXTREMELY HIGH COMPLICATION

Comparisons between computing machines and the nervous systems. Estimates of size for computing machines, present and near future.

Estimates for size for the human central nervous system. Excursus about the “mixed” character of living organisms. Analog and digital elements. Observations about the “mixed” character of all componentry, artificial as well as natural. Interpretation of the position to be taken with respect to these.

Evaluation of the discrepancy in size between artificial and natural automata. Interpretation of this discrepancy in terms of physical factors. Nature of the materials used.

The probability of the presence of other intellectual factors. The role of complication and the theoretical penetration that it requires.

Questions of reliability and errors reconsidered. Probability of individual errors and length of procedure. Typical lengths of procedure for computing machines and for living organisms--that is, for artificial and for natural automata. Upper limits on acceptable probability of error in individual operations. Compensation by checking and self-correcting features.

Differences of principle in the way in which errors are dealt with in artificial and in natural automata. The “single error” principle in artificial automata. Crudeness of our approach in this case, due to the lack of adequate theory. More sophisticated treatment of this problem in natural automata: The role of the autonomy of parts. Connections between this autonomy and evolution.

- 10^10 neurons in brain, 10^4 vacuum tubes in largest computer at time
- machines faster: 5 ms from neuron potential to neuron potential, 10^-3 ms for vacuum tubes

https://en.wikipedia.org/wiki/John_von_Neumann#Computing
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april 2018 by nhaliday
The Western Elite from a Chinese Perspective - American Affairs Journal
I don’t claim to be a modern-day Alexis de Tocqueville, nor do I have much in common with this famous observer of American life. He grew up in Paris, a city renowned for its culture and architecture. I grew up in Shijiazhuang, a city renowned for being the headquarters of the company that produced toxic infant formula. He was a child of aristocrats; I am the child of modest workers.

Nevertheless, I hope my candid observations can provide some insights into the elite institutions of the West. Certain beliefs are as ubiquitous among the people I went to school with as smog was in Shijiazhuang. The doctrines that shape the worldviews and cultural assumptions at elite Western institutions like Cambridge, Stanford, and Goldman Sachs have become almost religious. Nevertheless, I hope that the perspective of a candid Chinese atheist can be of some instruction to them.

...

So I came to the UK in 2001, when I was 16 years old. Much to my surprise, I found the UK’s exam-focused educational system very similar to the one in China. What is more, in both countries, going to the “right schools” and getting the “right job” are seen as very important by a large group of eager parents. As a result, scoring well on exams and doing well in school interviews—or even the play session for the nursery or pre-prep school—become the most important things in the world. Even at the university level, the undergraduate degree from the University of Cambridge depends on nothing else but an exam at the end of the last year.

On the other hand, although the UK’s university system is considered superior to China’s, with a population that is only one-twentieth the size of my native country, competition, while tough, is less intimidating. For example, about one in ten applicants gets into Oxbridge in the UK, and Stanford and Harvard accept about one in twenty-five applicants. But in Hebei province in China, where I am from, only one in fifteen hundred applicants gets into Peking or Qinghua University.

Still, I found it hard to believe how much easier everything became. I scored first nationwide in the GCSE (high school) math exam, and my photo was printed in a national newspaper. I was admitted into Trinity College, University of Cambridge, once the home of Sir Isaac Newton, Francis Bacon, and Prince Charles.

I studied economics at Cambridge, a field which has become more and more mathematical since the 1970s. The goal is always to use a mathematical model to find a closed-form solution to a real-world problem. Looking back, I’m not sure why my professors were so focused on these models. I have since found that the mistake of blindly relying on models is quite widespread in both trading and investing—often with disastrous results, such as the infamous collapse of the hedge fund Long-Term Capital Management. Years later, I discovered the teaching of Warren Buffett: it is better to be approximately right than precisely wrong. But our professors taught us to think of the real world as a math problem.

The culture of Cambridge followed the dogmas of the classroom: a fervent adherence to rules and models established by tradition. For example, at Cambridge, students are forbidden to walk on grass. This right is reserved for professors only. The only exception is for those who achieve first class honors in exams; they are allowed to walk on one area of grass on one day of the year.

The behavior of my British classmates demonstrated an even greater herd mentality than what is often mocked in American MBAs. For example, out of the thirteen economists in my year at Trinity, twelve would go on to join investment banks, and five of us went to work for Goldman Sachs.

...

To me, Costco represents the best of American capitalism. It is a corporation known for having its customers and employees in mind, while at the same time it has compensated its shareholders handsomely over the years. To the customers, it offers the best combination of quality and low cost. Whenever it manages to reduce costs, it passes the savings on to customers immediately. Achieving a 10 percent gross margin with prices below Amazon’s is truly incredible. After I had been there once, I found it hard to shop elsewhere.

Meanwhile, its salaries are much higher than similar retail jobs. When the recession hit in 2008, the company increased salaries to help employees cope with the difficult environment. From the name tags the staff wear, I have seen that frontline employees work there for decades, something hard to imagine elsewhere.

Stanford was for me a distant second to Costco in terms of the American capitalist experience. Overall, I enjoyed the curriculum at the GSB. Inevitably I found some classes less interesting, but the professors all seemed to be quite understanding, even when they saw me reading my kindle during class.

One class was about strategy. It focused on how corporate mottos and logos could inspire employees. Many of the students had worked for nonprofits or health care or tech companies, all of which had mottos about changing the world, saving lives, saving the planet, etc. The professor seemed to like these mottos. I told him that at Goldman our motto was “be long-term greedy.” The professor couldn’t understand this motto or why it was inspiring. I explained to him that everyone else in the market was short-term greedy and, as a result, we took all their money. Since traders like money, this was inspiring. He asked if perhaps there was another motto or logo that my other classmates might connect with. I told him about the black swan I kept on my desk as a reminder that low probability events happen with high frequency. He didn’t like that motto either and decided to call on another student, who had worked at Pfizer. Their motto was “all people deserve to live healthy lives.” The professor thought this was much better. I didn’t understand how it would motivate employees, but this was exactly why I had come to Stanford: to learn the key lessons of interpersonal communication and leadership.

On the communication and leadership front, I came to the GSB knowing I was not good and hoped to get better. My favorite class was called “Interpersonal Dynamics” or, as students referred to it, “Touchy Feely.” In “Touchy Feely,” students get very candid feedback on how their words and actions affect others in a small group that meets several hours per week for a whole quarter.

We talked about microaggressions and feelings and empathy and listening. Sometimes in class the professor would say things to me like “Puzhong, when Mary said that, I could see you were really feeling something,” or “Puzhong, I could see in your eyes that Peter’s story affected you.” And I would tell them I didn’t feel anything. I was quite confused.

One of the papers we studied mentioned that subjects are often not conscious of their own feelings when fully immersed in a situation. But body indicators such as heart rate would show whether the person is experiencing strong emotions. I thought that I generally didn’t have a lot of emotions and decided that this might be a good way for me to discover my hidden emotions that the professor kept asking about.

So I bought a heart rate monitor and checked my resting heart rate. Right around 78. And when the professor said to me in class “Puzhong, I can see that story brought up some emotions in you,” I rolled up my sleeve and checked my heart rate. It was about 77. And so I said, “nope, no emotion.” The experiment seemed to confirm my prior belief: my heart rate hardly moved, even when I was criticized, though it did jump when I became excited or laughed.

This didn’t land well on some of my classmates. They felt I was not treating these matters with the seriousness that they deserved. The professor was very angry. My takeaway was that my interpersonal skills were so bad that I could easily offend people unintentionally, so I concluded that after graduation I should do something that involved as little human interaction as possible.

Therefore, I decided I needed to return to work in financial markets rather than attempting something else. I went to the career service office and told them that my primary goal after the MBA was to make money. I told them that $500,000 sounded like a good number. They were very confused, though, as they said their goal was to help me find my passion and my calling. I told them that my calling was to make money for my family. They were trying to be helpful, but in my case, their advice didn’t turn out to be very helpful.

Eventually I was able to meet the chief financial officer of my favorite company, Costco. He told me that they don’t hire any MBAs. Everyone starts by pushing trolleys. (I have seriously thought about doing just that. But my wife is strongly against it.) Maybe, I thought, that is why the company is so successful—no MBAs!

...

Warren Buffett has said that the moment one was born in the United States or another Western country, that person has essentially won a lottery. If someone is born a U.S. citizen, he or she enjoys a huge advantage in almost every aspect of life, including expected wealth, education, health care, environment, safety, etc., when compared to someone born in developing countries. For someone foreign to “purchase” these privileges, the price tag at the moment is $1 million dollars (the rough value of the EB-5 investment visa). Even at this price level, the demand from certain countries routinely exceeds the annual allocated quota, resulting in long waiting times. In that sense, American citizens were born millionaires!

Yet one wonders how long such luck will last. This brings me back to the title of Rubin’s book, his “uncertain world.” In such a world, the vast majority things are outside our control, determined by God or luck. After we have given our best and once the final card is drawn, we should neither become too excited by what we have achieved nor too depressed by what we failed to … [more]
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january 2018 by nhaliday
Do High School Sports Build or Reveal Character?
We examine the extent to which participation in high school athletics has beneficial effects on future education, labor market, and health outcomes. Due to the absence of plausible instruments in observational data, we use recently developed methods that relate selection on observables with selection on unobservables to estimate bounds on the causal effect of athletics participation. We analyze these effects in the US separately for men and women using three different nationally representative longitudinal data sets that each link high school athletics participation with later-life outcomes. We do not find consistent evidence of individual benefits reported in many previous studies – once we have accounted for selection, high school athletes are no more likely to attend college, earn higher wages, or participate in the labor force. However, we do find that men (but not women) who participated in high school athletics are more likely to exercise regularly as adults. Nevertheless, athletes are no less likely to be obese.
pdf  study  broad-econ  economics  econometrics  microfoundations  human-capital  sports  intervention  null-result  wonkish  endo-exo  selection  confounding  labor  education  health  fitness  fitsci  org:ngo  white-paper  methodology  compensation  cost-benefit  input-output  endogenous-exogenous  branches 
november 2017 by nhaliday
Dressed for Success? The Effect of School Uniforms on Student Achievement and Behavior
Each school in the district determines adoption independently, providing variation over schools and time. By including student and school fixed-effects we find evidence that uniform adoption improves attendance in secondary grades, while in elementary schools they generate large increases in teacher retention.
study  economics  sociology  econometrics  natural-experiment  endo-exo  usa  the-south  social-norms  intervention  policy  wonkish  education  human-capital  management  industrial-org  organizing  input-output  evidence-based  endogenous-exogenous 
october 2017 by nhaliday
Stolen generations | West Hunter
Someone was quoted as saying that if you adopted an Australian Aborigine kid and raised him in England, he’d do just fine. This is a standard prediction, or maybe really an assumption, of most social scientists: people are the same everywhere. Let me put it more precisely: If you adopted a random draw of such kids just after birth, and then treated them in the same way that local native kids were treated, they’d end up with the same adult IQ, on average. And the same rate of alcoholism, and so forth. Same with any other racial group, the prediction says.

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

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

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

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

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

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

...

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

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

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

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

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

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

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

The China Shock was Matched by a China Boom: http://marginalrevolution.com/marginalrevolution/2018/01/china-shock-matched-china-boom.html
Our results fit the textbook story that job opportunities in exports make up for jobs lost in import-competing industries, or nearly so. Once we consider the export side, the negative employment effect of trade is much smaller than is implied in the previous literature. Although our analysis finds net job losses in the manufacturing sector for the US, there are remarkable job gains in services, suggesting that international trade has an impact on the labour market according to comparative advantage. The US has comparative advantages in services, so that overall trade led to higher employment through the increased demand for service jobs.
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august 2017 by nhaliday
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
Muscle, steam and combustion
Vaclav Smil’s Energy and Civilization is a monumental history of how humanity has harnessed muscle, steam and combustion to build palaces and skyscrapers, light the night and land on the Moon. Want to learn about the number of labourers needed to build Egypt’s pyramids of Giza, or US inventor Thomas Edison’s battles with Nikola Tesla and George Westinghouse to electrify homes and cities, or the upscaling of power stations and blast furnaces in the twentieth century? Look no further.
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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
https://www.weforum.org/agenda/2016/01/is-the-us-labour-share-as-constant-as-we-thought
https://www.economicdynamics.org/meetpapers/2015/paper_844.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.
https://ideas.repec.org/p/red/sed015/844.html
http://www.robertdkirkby.com/blog/2015/summary-of-piketty-i/
https://www.brookings.edu/bpea-articles/deciphering-the-fall-and-rise-in-the-net-capital-share/
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
Reuters Institute Digital News Report 2017
Section 3.2, p. 39 has polarization data
A new way to chart ideological leanings in news media: https://www.axios.com/a-new-way-to-chart-ideological-leanings-in-news-media-2475716743.html
(using Twitter follows)
Exploring the Ideological Nature of Journalists’ Social Networks on Twitter and Associations with News Story Content: https://drive.google.com/file/d/0B8CcT_0LwJ8QVnJMR1QzcGNuTkk/view
Visualizing Political Polarization on Twitter: http://www.theoutgroup.org/
Dear Mainstream Media: Why so liberal?: https://www.washingtonpost.com/blogs/erik-wemple/wp/2017/01/27/dear-mainstream-media-why-so-liberal/
Political Leanings of US Journalists vs. the Public in 2002

Topline Results: 2017 Texas Media & Society Survey: https://moody.utexas.edu/sites/default/files/TMASS_2017Topline_final.pdf
https://twitter.com/gelliottmorris/status/915295562123108352
https://archive.is/sE5cg
Some interesting results from a poll about media & polarization that I presented today for @AStraussInst <THREAD>
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june 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
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
Educational Romanticism & Economic Development | pseudoerasmus
https://twitter.com/GarettJones/status/852339296358940672
deleeted

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

...

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

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

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

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

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

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

...

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

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

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

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

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

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

But inserting conformity into the merit function is tricky: things become important signals… because they’re important signals. Otherwise useful actions are contraindicated because they’re “not done”. For example, test scores convey useful information. They could help show that an applicant is smart even though he attended a mediocre school – the same role they play in college admissions. But employers seldom request test scores, and although applicants may provide them, few do. Caplan says ” The word on the street… [more]
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april 2017 by nhaliday
The Causal Impact of Human Capital on R&D and Productivity: Evidence from the United States
We instrument our measures of schooling by using the variation in compulsory schooling laws and differences in mobilization rates in WWII, which we relate to the education benefits provided by the GI Bill Act (1944). This novel instrument provides a clean source of variation in the costs of attending college. Two-stage least squared regressions find no effect of the share of population with secondary schooling on outcomes such as n R&D per worker or TFP growth. On the other hand, the share of population with tertiary education has a significant effect on both R&D per worker or TFP growth.
pdf  study  economics  growth-econ  education  higher-ed  human-capital  causation  endo-exo  natural-experiment  usa  history  mostly-modern  econ-productivity  labor  econometrics  intervention  stylized-facts  world-war  supply-demand  policy  wonkish  innovation  input-output  evidence-based  endogenous-exogenous 
april 2017 by nhaliday
PsycARTICLES - Is education associated with improvements in general cognitive ability, or in specific skills?
Results indicated that the association of education with improved cognitive test scores is not mediated by g, but consists of direct effects on specific cognitive skills. These results suggest a decoupling of educational gains from increases in general intellectual capacity.

look at Model C for the coefficients

How much does education improve intelligence? A meta-analysis: https://psyarxiv.com/kymhp
Intelligence test scores and educational duration are positively correlated. This correlation can be interpreted in two ways: students with greater propensity for intelligence go on to complete more education, or a longer education increases intelligence. We meta-analysed three categories of quasi-experimental studies of educational effects on intelligence: those estimating education-intelligence associations after controlling for earlier intelligence, those using compulsory schooling policy changes as instrumental variables, and those using regression-discontinuity designs on school-entry age cutoffs. Across 142 effect sizes from 42 datasets involving over 600,000 participants, we found consistent evidence for beneficial effects of education on cognitive abilities, of approximately 1 to 5 IQ points for an additional year of education. Moderator analyses indicated that the effects persisted across the lifespan, and were present on all broad categories of cognitive ability studied. Education appears to be the most consistent, robust, and durable method yet to be identified for raising intelligence.

three study designs: control for prior IQ, exogenous policy change, and school age cutoff regression discontinuity

https://westhunt.wordpress.com/2017/11/07/skoptsys/#comment-97601
It’s surprising that there isn’t much of a fadeout (p11) – half of the effect size is still there by age 70 (?!). That wasn’t what I expected. Maybe they’re being pulled upwards by smaller outlier studies – most of the bigger ones tend towards the lower end.

https://twitter.com/gwern/status/928308706370052098
https://archive.is/v98bd
These gains are hollow, as they acknowledge in the discussion. Examples:
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march 2017 by nhaliday
Learning mathematics in a visuospatial format: A randomized, controlled trial of mental abacus instruction
We asked whether MA improves students’ mathematical abilities, and whether expertise – which requires sustained practice of mental imagery – is driven by changes to basic cognitive capacities like working memory. MA students improved on arithmetic tasks relative to controls, but training was not associated with changes to basic cognitive abilities. Instead, differences in spatial working memory at the beginning of the study mediated MA learning. We conclude that MA expertise can be achieved by many children in standard classrooms and results from efficient use of pre-existing abilities.

Cohen’s d = .60 (95% CI: .30 - .89) for arithmetic, .24 (-.05 - .52) for WJ-III, and .28 (.00 - .57) for place value

This finding suggests that the development of MA expertise is mediated by children’s pre-existing cognitive abilities, and thus that MA may not be suitable for all K-12 classroom environments, especially in groups of children who have low spatial working memory or attentional capacities (which may have been the case in our study). Critically, this does not mean that MA expertise depends on unusually strong cognitive abilities. Perhaps because we studied children from relatively disadvantaged backgrounds, few Mental Abacus 21 children in our sample had SWM capacities comparable to those seen among typical children in the United States.
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march 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.
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january 2017 by nhaliday
Highlighting a Waste of Time, Bryan Caplan | EconLog | Library of Economics and Liberty
Garett Jones' top catchphrase is, "If only there were a vast empirical literature on X."  When you're well-aware of the vast empirical literature to which he's alluding, it's funny.  Whenever you discover a new-to-you vast empirical literature, though, it's humbling.  The world's packed with vast empirical literatures.  Anytime you open your mouth in earnest, you're probably running afoul of one of them. 
spearhead  cracker-econ  org:econlib  aphorism  social-science  education  study  summary  psychology  econotariat  evidence-based  intervention  null-result  input-output 
december 2016 by nhaliday
Input-output linkages and income differences across countries | VOX, CEPR’s Policy Portal
One of the fundamental challenges in economics is to explain what causes the large cross-country differences in the level of income per capita. Development accounting – which has become the standard approach to address this question – typically assumes a production function for total value added (GDP) and backs out aggregate productivity differences as a residual. That is, aggregate productivity differences are computed as the unobserved factor that explains the cross-country variation in income per capita left unexplained by variation in the physical production factors. Typically, studies within this approach find that around 50% of the variation in per capita income is due to aggregate productivity differences.

Of course, such an aggregate approach leaves open the question about the micro determinants of the observed differences in aggregate productivity. These include within-sector distortions (e.g., due to market power or differential access to finance - see Hsieh and Klenow 2009), sector-specific productivity differences (in particular, low agricultural productivity levels in developing countries – see Gollin et al. 2013), and cross-country differences in input-output (IO) structure interacting with sectoral productivity differences or distortions. In particular, an old literature in development economics has long emphasised the role of IO linkages for aggregate economic performance (e.g. Hirschman 1958) and recently this insight has received new attention by mainstream macroeconomists.
study  summary  economics  econ-productivity  growth-econ  group-level  comparison  world  macro  efficiency  🎩  variance-components  econometrics  org:ngo  network-structure  article  input-output 
december 2016 by nhaliday
The Uniqueness of Italian Internal Divergence | Notes On Liberty
Measuring Productivity Dispersion: Lessons From Counting One-Hundred Million Ballots: http://cepr.org/active/publications/discussion_papers/dp.php?dpno=12273
We measure output per worker in nearly 8,000 municipalities in the Italian electoral process using ballot counting times in the 2013 general election and two referenda in 2016. We document large productivity dispersion across provinces in this very uniform and low-skill task that involves nearly no technology and requires limited physical capital. Using a development accounting framework, this measure explains up to half of the firm-level productivity dispersion across Italian provinces and more than half the north-south productivity gap in Italy. We explore potential drivers of our measure of labor efficiency and find that its association with measures of work ethic and trust is particularly robust.

Interregional Migration, Human Capital Externalities and Unemployment Dynamics: Evidence from Italian Provinces: https://www.econstor.eu/bitstream/10419/168560/1/Econstor.pdf
Using longitudinal data over the years 2002-2011 for 103 NUTS-3 Italian regions, we document that net outflows of human capital from the South to the North have increased the unemployment rate in the South, while it did not affect the unemployment rate in the North. Our analysis contributes to the literature on interregional human capital mobility suggesting that reducing human capital flight from Southern regions should be a priority

EXPLAINING ITALY’S NORTH-SOUTH DIVIDE: Experimental evidence of large differences in social norms of cooperation: http://www.res.org.uk/details/mediabrief/9633311/EXPLAINING-ITALYS-NORTH-SOUTH-DIVIDE-Experimental-evidence-of-large-differences-.html
Amoral Familism, Social Capital, or Trust? The Behavioural Foundations of the Italian North-South Divide: http://conference.iza.org/conference_files/CognitiveSkills_2014/casari_m8572.pdf

At the root of the North‐South cooperation gap in Italy Preferences or beliefs?: https://onlinelibrary.wiley.com/doi/abs/10.1111/ecoj.12608
Southerners share the same pro‐social preferences, but differ both in their belief about cooperativeness and in the aversion to social risk ‐ respectively more pessimistic and stronger among Southerners.

Past dominations, current institutions and the Italian regional economic performance: http://www.siecon.org/online/wp-content/uploads/2012/08/DiLiberto-Sideri.pdf
We study the connection between economic performance and the quality of government institutions for the sample of 103 Italian NUTS3 regions, including new measures of institutional quality calculated using data on the provision of four areas of public service: health, educational infrastructures, environment and energy. In order to address likely endogeneity problems, we use the histories of the different foreign dominations that ruled Italian regions between the 16th and 17th century and over seven hundred years before the creation of the unified Italian State. Our results suggest a significant role of past historical institutions on the current public administration efficiency and show that the latter makes a difference to the economic performance of regions. Overall, our analysis confirms that informal institutions matter for development, and that history can be used to find suitable instruments

Figure 1 – Institutional quality: territorial distribution

Figure 5: Italy during the period 1560-1659 (part A) and corresponding current provinces (part B)

Figure 6 –Former Spanish provinces

Italy’s North-South divide (1861-2011): the state of art: https://mpra.ub.uni-muenchen.de/62209/1/MPRA_paper_62209.pdf
My main argument is summed up in the conclusions: there was a socio-institutional divide between the North and the South of the peninsula, that pre-exists Unification, in some respects grows stronger with it and is never bridged throughout the history of post-unification Italy. Admittedly, some socio-institutional convergence took place in the last decades, but this went in a direction opposite to the desirable one − that is, the North and Italy as a whole have begun to look similar to the South, rather than vice versa.

La cartina dell’ISTAT che mostra dove si leggono più libri in Italia: http://www.ilpost.it/flashes/istat-lettori-regioni-italiane/
ISTAT map showing where more books are read in Italy
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december 2016 by nhaliday
The Production of Human Capital in Developed Countries: Evidence from 196 Randomized Field Experiments
Randomized field experiments designed to better understand the production of human capital have increased exponentially over the past several decades. This chapter summarizes what we have learned about various partial derivatives of the human capital production function, what important partial derivatives are left to be estimated, and what – together – our collective efforts have taught us about how to produce human capital in developed countries. The chapter concludes with a back of the envelope simulation of how much of the racial wage gap in America might be accounted for if human capital policy focused on best practices gleaned from randomized field experiments.
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november 2016 by nhaliday
Teachers: Much More Than You Wanted To Know | Slate Star Codex
Random Thoughts on the Idiocy of VAM: https://educationrealist.wordpress.com/2016/05/20/random-thoughts-on-the-idiocy-of-vam/
Scott Alexander reviews the research on value-added measurement of teacher quality. While Scott’s overview is perfectly fine, any such effort is akin to a circa 1692 overview of the research literature on alchemy. Quantifying teacher quality will, I believe, be understood in those terms soon enough.

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

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

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