nhaliday + macro   211

Team *Decorations Until Epiphany* on Twitter: "@RoundSqrCupola maybe just C https://t.co/SFPXb3qrAE"
https://archive.is/k0fsS
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
The rate of return on everything - Marginal REVOLUTION
Here is what I learned from the paper itself:

1. Risky assets such as equities and residential real estate average about 7% gains per year in real terms.  Housing outperformed equity before WWII, vice versa after WWII.  In any case it is a puzzle that housing returns are less volatile but about at the same level as equity returns over a broader time span.
2. Equity and housing gains have a relatively low covariance.  Buy both!
3. Equity returns across countries have become increasingly correlated, housing returns not.
4. The return on real safe assets is much more volatile than you might think.
5. The equity premium is volatile too.
6. The authors find support for Piketty’s r > g, except near periods of war.  Furthermore, the gap between r and g does not seem to be correlated with the growth rate of the economy.

I found this to be one of the best and most interesting papers of the year.
econotariat  marginal-rev  commentary  study  summary  economics  macro  investing  ORFE  securities  data  street-fighting  objektbuch  scale  time-preference  cost-benefit  outcome-risk  housing  money  monetary-fiscal  debt  history  mostly-modern  world-war  trends  correlation  moments  growth-econ  inequality  piketty  stylized-facts  war  meta:war 
december 2017 by nhaliday
The Grumpy Economist: Bitcoin and Bubbles
Bitcoin is not a very good money. It is a pure fiat money (no backing), whose value comes from limited supply plus these demands. As such it has the huge price fluctuations we see. It's an electronic version of gold, and the price variation should be a warning to economists who long for a return to  gold. My bet is that stable-value cryptocurrencies, offering one dollar per currency unit and low transactions costs, will prosper in the role of money. At least until there is a big inflation or sovereign debt crisis and a stable-value cryptocurrency not linked to government debt emerges.

https://twitter.com/GarettJones/status/939242620869660672
https://archive.is/Rrbg6
The Kareken-Wallace Cryptocurrency Price Indeterminacy theorem will someday receive the attention it deserves

https://www.mercatus.org/system/files/cryptocurrency-article.pdf
Cryptocurrencies also raise in a new way questions of exchange rate indeterminacy. As Kareken and Wallace (1981) observed, fiat currencies are all alike: slips of paper not redeemable for anything. Under a regime of floating exchange rates and no capital controls, and assuming some version of interest rate parity holds, there are an infinity of exchange rates between any two fiat currencies that constitute an equilibrium in their model.

The question of exchange rate indeterminacy is both more and less striking between cryptocurrencies than between fiat currencies. It is less striking because there are considerably more differences between cryptocurrencies than there are between paper money. Paper money is all basically the same. Cryptocurrencies sometimes have different characteristics from each other. For example, the algorithm used as the basis for mining makes a difference – it determines how professionalised the mining pools become. Litecoin uses an algorithm that tends to make mining less concentrated. Another difference is the capability of the cryptocurrency’s language for programming transactions. Ethereum is a new currency that boasts a much more robust language than Bitcoin. Zerocash is another currency that offers much stronger anonymity than Bitcoin. To the extent that cryptocurrencies differ from each other more than fiat currencies do, those differences might be able to pin down exchange rates in a model like Kareken and Wallace’s.

On the other hand, exchange rate indeterminacy could be more severe among cryptocurrencies than between fiat currencies because it is easy to simply create an exact copy of an open source cryptocurrency. There are even websites on which you can create and download the software for your own cryptocurrency with a few clicks of a mouse. These currencies are exactly alike except for their names and other identifying information. Furthermore, unlike fiat currencies, they don’t benefit from government acceptance or optimal currency area considerations that can tie a currency to a given territory.

Even identical currencies, however, can differ in terms of the quality of governance. Bitcoin currently has high quality governance institutions. The core developers are competent and conservative, and the mining and user communities are serious about making the currency work. An exact Bitcoin clone is likely to have a difficult time competing with Bitcoin unless it can promise similarly high-quality governance. When a crisis hits, users of identical currencies are going to want to hold the one that is mostly likely to weather the storm. Consequently, between currencies with identical technical characteristics, we think governance creates something close to a winner-take-all market. Network externalities are very strong in payment systems, and the governance question with respect to cryptocurrencies in particular compounds them.

https://twitter.com/GarettJones/status/939259281039380480
https://archive.is/ldof8
Explaining a price rise via future increases in the asset's value isn't good economics. The invisible hand should be pushing today's price up to the point where it earns normal expected returns. +
I don't doubt the likelihood of a future cryptocurrency being widely used, but that doesn't pin down the price of any one cryptocurrency as the Kareken-Wallace result shows. There may be a big first mover advantage for Bitcoin but ease of replication makes it a fragile dominance.

https://twitter.com/netouyo_/status/939566116229218306
https://archive.is/CtE6Q
I actually can't believe governments are allowing bitcoin to exist (they must be fully on board with going digital at some point)

btc will eventually come in direct competition with national currencies, which will have to raise rates dramatically, or die

http://www.thebigquestions.com/2017/12/08/matters-of-money/
The technology of Bitcoin Cash is very similar to the technology of Bitcoin. It offers the same sorts of anonymity, security, and so forth. There are some reasons to believe that in the future, Bitcoin Cash will be a bit easier to trade than Bitcoin (though that is not true in the present), and there are some other technological differences between them, but I’d be surprised to learn that those differences are accounting for any substantial fraction of the price differential.

The total supplies of Bitcoins and of Bitcoin Cash are currently about equal (because of the way that Bitcoin Cash originated). In each case, the supply will gradually grow to 21 million and then stop.

Question 1: Given the near identical properties of these two currencies, how can one sell for ten times the price of the other? Perhaps the answer involves the word “bubble”, but I’d be more interested in answers that assume (at least for the sake of argument) that the price of Bitcoin fairly reflects its properties as a store of value. Given that assumption, is the price differential entirely driven by the fact that Bitcoin came first? Is there that much of a first-mover advantage in this kind of game?

Question 2: Given the existence of other precious metals (e.g. platinum) what accounts for the dominance of gold as a physical store of value? (I note, for example, that when people buy gold as a store of value, they don’t often hesitate out of fear that gold will be displaced by platinum in the foreseeable future.) Is this entirely driven by the fact that gold happened to come first?

Question 3: Are Questions 1 and 2 the same question? Are the dominance of Bitcoin in the digital store-of-value market and the dominance of gold in the physical store-of-value market two sides of the same coin, so to speak? Or do they require fundamentally different explanations?

https://twitter.com/GarettJones/status/944582032780382208
https://archive.is/kqTXg
Champ/Freeman in 2001 explain why the dollar-bitcoin exchange rate is inherently unstable, and why the price of cryptocurrencies is indeterminate:

https://twitter.com/GarettJones/status/945046058073071617
https://archive.is/Y0OQB
Lay down a marker:
And remember that the modern macro dogma is that monetary systems matter little for prosperity, once bare competence is achieved.
econotariat  randy-ayndy  commentary  current-events  trends  cryptocurrency  bitcoin  money  monetary-fiscal  economics  cycles  multi  twitter  social  garett-jones  pdf  white-paper  article  macro  trade  incentives  equilibrium  backup  degrees-of-freedom  uncertainty  supply-demand  markets  gnon  🐸  government  gedanken  questions  comparison  analogy  explanans  fungibility-liquidity 
december 2017 by nhaliday
microeconomics - Partial vs. general equilibrium - Economics Stack Exchange
The main difference between partial and general equilibrium models is, that partial equilibrium models assume that what happens on the market one wants to analyze has no effect on other markets.
q-n-a  stackex  explanation  jargon  comparison  concept  models  economics  micro  macro  equilibrium  supply-demand  markets  methodology  competition 
november 2017 by nhaliday
Tax Evasion and Inequality
This paper attempts to estimate the size and distribution of tax evasion in rich countries. We combine stratified random audits—the key source used to study tax evasion so far—with new micro-data leaked from two large offshore financial institutions, HSBC Switzerland (“Swiss leaks”) and Mossack Fonseca (“Panama Papers”). We match these data to population-wide wealth records in Norway, Sweden, and Denmark. We find that tax evasion rises sharply with wealth, a phenomenon that random audits fail to capture. On average about 3% of personal taxes are evaded in Scandinavia, but this figure rises to about 30% in the top 0.01% of the wealth distribution, a group that includes households with more than $40 million in net wealth. A simple model of the supply of tax evasion services can explain why evasion rises steeply with wealth. Taking tax evasion into account increases the rise in inequality seen in tax data since the 1970s markedly, highlighting the need to move beyond tax data to capture income and wealth at the top, even in countries where tax compliance is generally high. We also find that after reducing tax evasion—by using tax amnesties—tax evaders do not legally avoid taxes more. This result suggests that fighting tax evasion can be an effective way to collect more tax revenue from the ultra-wealthy.

Figure 1

America’s unreported economy: measuring the size, growth and determinants of income tax evasion in the U.S.: https://link.springer.com/article/10.1007/s10611-011-9346-x
This study empirically investigates the extent of noncompliance with the tax code and examines the determinants of federal income tax evasion in the U.S. Employing a refined version of Feige’s (Staff Papers, International Monetary Fund 33(4):768–881, 1986, 1989) General Currency Ratio (GCR) model to estimate a time series of unreported income as our measure of tax evasion, we find that 18–23% of total reportable income may not properly be reported to the IRS. This gives rise to a 2009 “tax gap” in the range of $390–$540 billion. As regards the determinants of tax noncompliance, we find that federal income tax evasion is an increasing function of the average effective federal income tax rate, the unemployment rate, the nominal interest rate, and per capita real GDP, and a decreasing function of the IRS audit rate. Despite important refinements of the traditional currency ratio approach for estimating the aggregate size and growth of unreported economies, we conclude that the sensitivity of the results to different benchmarks, imperfect data sources and alternative specifying assumptions precludes obtaining results of sufficient accuracy and reliability to serve as effective policy guides.
pdf  study  economics  micro  evidence-based  data  europe  nordic  scale  class  compensation  money  monetary-fiscal  political-econ  redistribution  taxes  madisonian  inequality  history  mostly-modern  natural-experiment  empirical  🎩  cocktail  correlation  models  supply-demand  GT-101  crooked  elite  vampire-squid  nationalism-globalism  multi  pro-rata  usa  time-series  trends  world-war  cold-war  government  todo  planning  long-term  trivia  law  crime  criminology  estimate  speculation  measurement  labor  macro  econ-metrics  wealth  stock-flow  time  density  criminal-justice  frequency  dark-arts  traces  evidence 
october 2017 by nhaliday
Who Emigrates From Denmark? – LaborEcon
Ilpo Kauppinen, Panu Poutvaara, and I have just finished a paper that examines the selection characterizing emigrants from Denmark, one of the richest and most redistributive European welfare states.

The paper makes a neat theoretical contribution. It derives the conditions that determine whether the skill distribution of the emigrants stochastically dominates (or is stochastically dominated by) the skill distribution of the stayers. Because the rewards to skills in Denmark are low (relative to practically all possible destinations), the model predicts that the emigrants will be positively selected, and that the skill distribution of the movers will stochastically dominate that of the stayers.

Our analysis of administrative data for the entire Danish population between 1995 and 2010 strongly confirms the implications of the model. Denmark is indeed seeing an outflow of its most skilled workers. And that is one of the consequences that a very generous welfare state must learn to live with.

The paper is forthcoming in the Economic Journal.
econotariat  borjas  economics  macro  labor  redistribution  welfare-state  europe  nordic  migration  human-capital  compensation  inequality  egalitarianism-hierarchy  anglosphere  correlation  selection  study  summary  🎩  stylized-facts  wonkish  policy  unintended-consequences  comparison  polisci  political-econ  nationalism-globalism  dysgenics 
september 2017 by nhaliday
A cross-country empirical test of cognitive abilities and innovation nexus - Munich Personal RePEc Archive
In this study we analyze the relationship between national cognitive abilities and innovational output using data from 124 countries of the world. By employing cross-country IQ scores traditionally used by psychological literature to represent national intelligence, and Economic Complexity Index as a novel measure of innovation, our study shows that there is a positive connection between them. We use a variety of tests to check the robustness of the nexus. Overall, our findings indicate that more intelligent nations export more sophisticated and diverse products to the world market and thus are more innovative. Therefore, developing countries should consider investing in human capital and related institutions if they are to boost innovative capabilities and move up the technology ladder in producing and exporting sophisticated and varied lines of products. This should bring them greater economic diversity which could be a right lever in mitigating negative external shocks.
study  economics  broad-econ  psychology  cog-psych  growth-econ  wealth-of-nations  innovation  pop-diff  rindermann-thompson  diversity  human-capital  hive-mind  iq  correlation  entropy-like  wealth  the-world-is-just-atoms  🎩  econ-metrics  econometrics  world  group-level  spearhead  macro  stylized-facts  behavioral-econ  biophysical-econ  microfoundations  🌞  hari-seldon 
september 2017 by nhaliday
Gauging the Uncertainty of the Economic Outlook Using Historical Forecasting Errors: The Federal Reserve’s Approach
First, if past performance is a reasonable guide to future accuracy, considerable uncertainty surrounds all macroeconomic projections, including those of FOMC participants. Second, different forecasters have similar accuracy. Third, estimates of uncertainty about future real activity and interest rates are now considerably greater than prior to the financial crisis; in contrast, estimates of inflation accuracy have changed little.
pdf  study  economics  macro  meta:prediction  tetlock  accuracy  org:gov  government  wonkish  moments  🎩  volo-avolo 
september 2017 by nhaliday
Reckonings; A Rent Affair - The New York Times
Economists who have ventured into the alleged real world often quote Princeton's Alan Blinder, who has formulated what he calls ''Murphy's Law of economic policy'': ''Economists have the least influence on policy where they know the most and are most agreed; they have the most influence on policy where they know the least and disagree most vehemently.'' It's flip and cynical, but it's true.
news  org:rec  krugman  econotariat  aphorism  stylized-facts  social-choice  wonkish  economics  micro  supply-demand  macro  housing  markets  government 
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.
pdf  study  economics  labor  econometrics  autor  china  asia  trade  nationalism-globalism  intervention  inequality  compensation  🎩  trends  zeitgeist  heavy-industry  automation  multi  distribution  usa  macro  noahpinion  econotariat  contrarianism  politics  trump  europe  current-events  2016-election  postmortem  input-output  news  org:mag  org:biz  org:bv  business  innovation  links  summary  list  industrial-org  wonkish  roots  polarization  article  org:lite  class  class-warfare  chart  political-econ  polisci  government  tribalism  sociology  cost-benefit  unintended-consequences  marginal-rev  definite-planning  the-world-is-just-atoms  amazon  winner-take-all  malaise  gnosis-logos  endogenous-exogenous 
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
Inherited Trust and Growth - American Economic Association
This paper develops a new method to uncover the causal effect of trust on economic growth by focusing on the inherited component of trust and its time variation. We show that inherited trust of descendants of US immigrants is significantly influenced by the country of origin and the timing of arrival of their forebears. We thus use the inherited trust of descendants of US immigrants as a time-varying measure of inherited trust in their country of origin. This strategy allows to identify the sizeable causal impact of inherited trust on worldwide growth during the twentieth century by controlling for country fixed effects. (JEL N11, N12, N31, N32, O47, Z13)

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

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

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

The autocratic roots of social distrust: http://sci-hub.tw/https://www.sciencedirect.com/science/article/pii/S0147596717300951
This paper identifies a new source of social distrust: an individual’s autocratic
origin.
 Individuals whose ancestors migrated from countries with higher autocracy
levels are less likely to trust others and to vote in presidential elections in the
U.S.
 The impact of autocratic culture on trust lasts for at least three generations
whereas the impact on voting disappears after one generation.
 The results are not driven by selection into migration or other factors such as the
GDP, education, or the strength of family ties in home countries in the U.S.
 Autocratic culture also has similar impacts on trust and voting across Europe.
study  economics  growth-econ  broad-econ  cultural-dynamics  anthropology  trust  cohesion  social-capital  causation  endo-exo  natural-experiment  history  early-modern  pre-ww2  mostly-modern  migration  usa  🎩  pdf  piracy  putnam-like  social-norms  s:*  cliometrics  econometrics  civic  culture  microfoundations  europe  nordic  mediterranean  germanic  regression  the-great-west-whale  occident  n-factor  africa  latin-america  divergence  britain  anglo  anglosphere  gallic  EU  india  asia  outliers  data  variance-components  correlation  path-dependence  general-survey  cooperate-defect  econ-metrics  macro  multi  charity  altruism  flux-stasis  volo-avolo  econotariat  cracker-econ  org:econlib  rhetoric  assimilation  analysis  axelrod  attaq  endogenous-exogenous  branches  authoritarianism  antidemos  age-generation  elections  polisci  political-econ  hari-seldon  alignment  time 
july 2017 by nhaliday
Free to Leave? A Welfare Analysis of Divorce Regimes - American Economic Association
Calibrating the model to match key moments for the 1940 cohort and conditioning solely on gender, our ex ante welfare analysis finds that women fare better under mutual consent whereas men prefer a unilateral system. Conditioning as well on initial productivity (expected income), we find that the top three quintiles of men and the top two quintiles of women prefer unilateral divorce.

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

Losers and Winners: The Financial Consequences of Separation and Divorce for Men: http://www.jstor.org/stable/2657417
Contrary to conventional thinking, the majority of partnered men in the United States lose economic status when their unions dissolve. Using data from the Panel Study of Income Dynamics, this analysis shows that for most men the primary source of economic decline after union dissolution is their inability to fully compensate for the loss of their partner's income. A secondary source of economic decline is an increase in compulsory and voluntary support payments. Welfare state tax and transfer mechanisms have a much smaller overall impact on changes in men's living standards following separation. Although most men experience a decline in living standards following union dissolution, men's outcomes are heterogeneous, and the minority of men who relied on their partners for less than one-fifth of pre-dissolution income typically gain from separation and divorce. The data show a clear trend toward greater economic interdependence in American partnerships, and this trend appears to increase the proportion of men who suffer a reduced standard of living following separation.
study  economics  macro  sociology  gender  gender-diff  sex  life-history  compensation  class  models  multi  developmental  volo-avolo  counterfactual  intervention  civil-liberty  unintended-consequences  natural-experiment  endo-exo  parenting  endogenous-exogenous  cost-benefit  policy  law  pdf  assortative-mating  distribution  equilibrium  trends  institutions  social-structure  chart  branches  begin-middle-end 
june 2017 by nhaliday
On the effects of inequality on economic growth | Nintil
After the discussion above, what should one think about the relationship between inequality and growth?

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

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

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

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

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

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

https://twitter.com/NAChristakis/status/952315243572719617
https://archive.is/DpyAx
Our own work has shown that the *visibility* of inequality, more then the inequality per se, may be especially corrosive to the social fabric. https://www.nature.com/articles/nature15392 … I wonder if @WalterScheidel historical data sheds light on this idea? end 5/
ratty  unaffiliated  commentary  article  inequality  egalitarianism-hierarchy  economics  macro  growth-econ  causation  meta-analysis  study  summary  links  albion  econotariat  org:ngo  randy-ayndy  nl-and-so-can-you  survey  policy  wonkish  spock  nitty-gritty  evidence-based  s:*  🤖  🎩  world  developing-world  group-level  econ-metrics  chart  gray-econ  endo-exo  multi  yvain  ssc  books  review  critique  contrarianism  sociology  polisci  politics  left-wing  correlation  null-result  race  culture  society  anglosphere  protestant-catholic  regional-scatter-plots  big-picture  compensation  meaningness  cost-benefit  class  mobility  wealth  org:anglo  rhetoric  ideology  envy  money  endogenous-exogenous  org:nat  journos-pundits  anthropology  stylized-facts  open-closed  branches  walter-scheidel  broad-econ  twitter  social  discussion  backup  public-goodish  humility  charity 
june 2017 by nhaliday
Young Men Are Playing Video Games Instead of Getting Jobs. That's OK. (For Now.) - Reason.com
https://www.dropbox.com/s/al533ecu82w29y1/BusinessCycleFallout.pdf
https://twitter.com/MarkKoyama/status/881893997706399744
This is like a reversal of the industrious revolution studied in my JEBO paper: new consumption technologies are money cheap but time pricey
http://www.nber.org/papers/w23552
https://www.1843magazine.com/features/escape-to-another-world
https://news.ycombinator.com/item?id=13723996
http://marginalrevolution.com/marginalrevolution/2016/07/what-are-young-men-doing.html
https://www.firstthings.com/blogs/firstthoughts/2016/08/americas-lost-boys

http://www.arnoldkling.com/blog/work-becomes-optional/
participation has changed along an understudied margin of labor supply. I find that “in-and-outs”—men who temporarily leave the labor force—represent a growing fraction of prime age men across multiple data sources and are responsible for roughly one third of the decline in the participation rate since 1977. In-and-outs take short, infrequent breaks out of the labor force in between jobs, but they are otherwise continuously attached to the labor force. Leading explanations for the growing share of permanent labor force dropouts, such as disability, do not apply to in-and-outs. Instead, reduced-form evidence and a structural model of household labor supply both indicate that the rise of in-and-outs reflects a shift in labor supply, largely due to the increasing earnings of men’s partners and the growth of men living with their parents.

Pointer from Tyler Cowen. My thoughts:

1. When we think of labor force participation declining, we think of, say, John Smith, deciding to never work again. What this paper is saying is that the statistics reflect something different. One month Smith takes a break, then next month he gets a job and Tom Jones takes a break.

2. I think we have always had a large number of workers who are not fully employed year round. That is, there have always been a lot of workers who take breaks between jobs. This is common in construction work, for example.

3. I don’t know if this matters for the phenomenon at hand, but we used to have inventory recessions. In those cases, workers would be out of a job for a while, but they would still be in the labor force, because they were waiting to be recalled by the firm that had laid them off.

4. It seems to me that this is an important paper. Re-read the last sentence in the quoted excerpt.

Job outlook growing worse for young American men: https://www.courier-journal.com/story/opinion/contributors/2018/01/02/job-outlook-growing-worse-young-american-men-opinion/996922001/
As one might imagine, the absence of a job, quality education, or spouse has not bred otherwise productive citizens. Multiple studies have found that young men have replaced what would otherwise be working hours with leisure time at a near 1-1 ratio. Erik Hurst, an economist at the University of Chicago, found that young men spent a startling 75 percent of this leisure time playing video games, with many spending more than 30 hours a week gaming and over 5 million Americans spending more than 45 hours per week.

Higher suicide rates, violent crime, and drug addiction among young men have followed. Suicide rates in the United States are at a 30-year high, with men more than three and a half times more likely to take their own lives than women. Around the United States, violent crimes, homicide in particular, has increased in two-thirds of American cities, with overwhelming young male perpetrators driving the increase. A 2015 Brookings Institute study estimated that nearly half of working-age American men who are out of the labor force are using painkillers, daily.

These problems have been “invisible” for too long.

As video games get better, young men work less and play more: http://review.chicagobooth.edu/economics/2017/article/video-games-get-better-young-men-work-less-and-play-more

Why Are Prime-Age Men Vanishing from the Labor Force?: https://www.kansascityfed.org/~/media/files/publicat/econrev/econrevarchive/2018/1q18tuzemen.pdf

Prime-Age Men May Never Return to U.S. Workforce, Fed Paper Says: https://www.bloomberg.com/news/articles/2018-02-23/prime-age-men-may-never-return-to-u-s-workforce-fed-paper-says
news  org:mag  rhetoric  trends  malaise  coming-apart  gender  labor  automation  inequality  games  populism  randy-ayndy  human-capital  education  econotariat  marginal-rev  male-variability  rot  dignity  multi  pdf  garett-jones  cycles  gedanken  twitter  social  commentary  economics  broad-econ  org:anglo  org:biz  attention  wonkish  stagnation  current-events  journos-pundits  hn  class  org:lite  society  :/  self-control  lol  macro  data  usa  letters  org:ngo  life-history  bootstraps  oscillation  dropbox  chart  cracker-econ  long-short-run  preprint  pseudoE  org:local  the-monster  org:edu  study  summary  white-paper  org:gov  article  essay  roots  explanans  polarization  winner-take-all  org:theos 
june 2017 by nhaliday
Double world GDP | Open Borders: The Case
Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?: https://www.aeaweb.org/articles?id=10.1257/jep.25.3.83
https://openborders.info/innovation-case/
https://www.economist.com/news/world-if/21724907-yes-it-would-be-disruptive-potential-gains-are-so-vast-objectors-could-be-bribed
The Openness-Equality Trade-Off in Global Redistribution: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2509305
https://www.wsj.com/articles/opening-our-borders-would-overwhelm-america-1492366053
Immigration, Justice, and Prosperity: http://quillette.com/2017/07/29/immigration-justice-prosperity/

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

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

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

Why nation-states are good: https://aeon.co/essays/capitalists-need-the-nation-state-more-than-it-needs-them
The nation-state remains the best foundation for capitalism, and hyper-globalisation risks destroying it
- Dani Rodrik
Given the non-uniqueness of practices and institutions enabling capitalism, it’s not surprising that nation-states also resolve key social trade-offs differently. The world does not agree on how to balance equality against opportunity, economic security against innovation, health and environmental risks against technological innovation, stability against dynamism, economic outcomes against social and cultural values, and many other consequences of institutional choice. Developing nations have different institutional requirements than rich nations. There are, in short, strong arguments against global institutional harmonisation.
org:ngo  wonkish  study  summary  commentary  economics  growth-econ  policy  migration  econ-metrics  prediction  counterfactual  intervention  multi  news  org:rec  org:anglo  org:biz  nl-and-so-can-you  rhetoric  contrarianism  politics  reflection  usa  current-events  equilibrium  org:mag  org:popup  spearhead  institutions  hive-mind  wealth-of-nations  divergence  chart  links  innovation  entrepreneurialism  business  human-capital  regularizer  attaq  article  microfoundations  idk  labor  class  macro  insight  world  hmm  proposal  inequality  nationalism-globalism  developing-world  whiggish-hegelian  albion  us-them  tribalism  econotariat  cracker-econ  essay  big-peeps  unintended-consequences  humility  elite  vampire-squid  markets  capitalism  trade  universalism-particularism  exit-voice  justice  diversity  homo-hetero 
june 2017 by nhaliday
How important was colonial trade for the rise of Europe? | Economic Growth in History
The latter view became the orthodoxy among economists and economic historians after Patrick O’Brien’s 1982 paper, which in one of many of Patrick’s celebrated phrases, claims that “”the periphery vs peripheral” for Europe. He concludes the paper by writing:

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

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

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

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

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

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

...

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

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

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

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

...

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

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

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

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

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

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

...

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

...

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

...

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

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

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

...

There was a realization in Britain that colonies were not particularly economically beneficial to the home economy. … [more]
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
Causes of the Great Depression - Wikipedia
Current mainstream theories may be broadly classified into two main points of view. There are also several heterodox explanations. Of the mainstream views, the first are the demand-driven theories, from Keynesian and institutional economists who argue that the depression was caused by a widespread loss of confidence that led to underconsumption. The demand-driven theories argue that the financial crisis following the 1929 crash led to a sudden and persistent reduction in consumption and investment spending.[1] Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money therefore became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating the drop in demand.

Second, there are the monetarists, who believe that the Great Depression started as an ordinary recession, but that significant policy mistakes by monetary authorities (especially the Federal Reserve) caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Related to this explanation are those who point to debt deflation causing those who borrow to owe ever more in real terms.
history  mostly-modern  usa  world  economics  macro  cycles  roots  chart  article  wiki  reference  monetary-fiscal  policy  scott-sumner 
june 2017 by nhaliday
Book Review by John Derbyshire: Doesn’t Add Up
Weapons of Math Destruction: How Big Data Increases Inequality and Threatens Democracy
https://twitter.com/HoustonEuler/status/887479542360702977
My embedded opinion is that Cathy O'Neil frequently writes foolish things
She's a former mathematician/finance quant who dresses up a lot of progressive dogma with phony skepticism

http://www.vdare.com/tag/minority-mortgage-meltdown
http://www.slate.com/articles/business/moneybox/2008/10/subprime_suspects.html
http://voxeu.org/article/minority-mortgage-market-and-crisis

Causes of the Financial Crisis: https://spottedtoad.wordpress.com/2016/01/17/causes-of-the-financial-crisis/
Look, Wall Street was definitely a bad actor from 2000-2008. But the idea that they were solely responsible for the crisis has got to go. There were four main factors, in descending order:

a) A huge global savings glut that meant there were vast amounts of cash people were eager to lend out, combined with…

b) Enormous pressures to make use of all that money to increase lending and reduce standards for lower-income and minority households.

This book has some of the story, mostly focusing on the expansion and growing political power of Freddie and Fannie in the 1990s, but it really wasn’t any secret that reducing credit-worthiness (sorry, barriers to homeownership) was an explicit goal of the Clinton and Bush administrations and affiliated banks. Bush gave a long speech on these goals in mid-2002. Countrywide, led by Angelo Mozilo, pledged $600 billion in loans to low-income and minority homeowners in early 2003. Then, the Bush administration was bragging in late 2004 about the commitments they had elicited from lenders to expand low-income and minority lending by over $1 Trillion. Then, a few months later, in 2005, Countrywide, with a former HUD secretary on its board, released a press release bragging that they were going to increase their book of lending to minority and low-income households to $1 Trillion. Looking back on the crisis, liberal sociologists find, unsurprisingly, that subprime lending and the subsequent foreclosures were concentrated in minority households.
c) The efforts to extend massive amounts of credit to non-creditworthy families were abetted by fraud and irresponsible borrowing by those same households. See, for example, Atif Mian’s papers on widespread fraud in mortgage applications.
d) Bad actions by Wall Street (Inside Job is probably a good version of this.)

The idea that only d matters is just nuts.
pdf  essay  org:mag  books  review  summary  critique  westminster  culture-war  migration  cycles  housing  policy  government  politics  ethical-algorithms  gnon  isteveish  albion  right-wing  rant  attaq  paleocon  multi  twitter  social  commentary  unaffiliated  chart  news  org:lite  list  stream  org:ngo  econotariat  economics  macro  roots  big-picture  finance  race  diversity  track-record  ratty  debt  usa  statesmen  events  letters 
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/
FIGURE 4
Middle-class wages are stagnant—Middle-wage workers’ hourly wage is up 6% since 1979, low-wage workers’ wages are down 5%, while those with very high wages saw a 41% increase
Cumulative change in real hourly wages of all workers, by wage percentile,* 1979–2013

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

US income inequality: caused by financiers and tech entrepreneurs: http://infoproc.blogspot.com/2006/09/us-income-inequality-caused-by.html
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  the-bones 
may 2017 by nhaliday
Get Ready to See This Globalization 'Elephant Chart' Over and Over Again - Bloomberg
news  org:mag  org:biz  winner-take-all  inequality  nationalism-globalism  economics  growth-econ  world  developing-world  history  mostly-modern  trends  malaise  multi  org:bv  econotariat  noahpinion  critique  debate  org:rec  org:anglo  org:davos  class  vampire-squid  noblesse-oblige  chart  data  visualization  plots  china  asia  europe  usa  piracy  econ-metrics  econometrics  study  summary  🎩  2015  2016-election  wealth  compensation  stagnation  nl-and-so-can-you  stylized-facts  polarization  zeitgeist  the-bones  modernity  class-warfare  twitter  social  pic  distribution  org:edu  pseudoE  broad-econ  org:data  org:popup  analysis  article  list  wealth-of-nations  urban  india  latin-america  africa  germanic  envy  macro  rhetoric  explanation  trade  urban-rural 
may 2017 by nhaliday
Animal spirits (Keynes) - Wikipedia
Animal spirits is the term John Maynard Keynes used in his 1936 book The General Theory of Employment, Interest and Money to describe the instincts, proclivities and emotions that ostensibly influence and guide human behavior, and which can be measured in terms of, for example, consumer confidence. It has since been argued that trust is also included in or produced by "animal spirits".
economics  macro  meta:prediction  tetlock  psychology  social-psych  instinct  heuristic  bounded-cognition  error  info-dynamics  wiki  reference  jargon  aphorism  big-peeps 
april 2017 by nhaliday
Contours of the World Economy, 1–2030 AD: Essays in Macro-Economic History
kinda trashes it

Angus Maddison: https://pseudoerasmus.com/2014/06/12/angus-maddison/
This blogpost examines the dubious assumptions behind Angus Maddison’s pre-1200 income data.

Rebasing 'Maddison': The shape of long-run economic development: https://voxeu.org/article/rebasing-maddison
Research on long-run economic development has relied heavily on the database compiled by Angus Maddison. This column presents a new version of the Maddison Project Database based on historical growth data, but also incorporating historical cross-country income comparisons. The revisions shed new light on patterns of long-term development and cross-country income convergence.

File:1700 AD through 2008 AD per capita GDP of China Germany India Japan UK USA per Angus Maddison.png - Wikimedia Commons: https://commons.wikimedia.org/wiki/File:1700_AD_through_2008_AD_per_capita_GDP_of_China_Germany_India_Japan_UK_USA_per_Angus_Maddison.png
pdf  spearhead  gregory-clark  books  review  economics  growth-econ  broad-econ  history  early-modern  mostly-modern  econ-metrics  data  info-foraging  summary  macro  big-picture  encyclopedic  realness  measurement  critique  farmers-and-foragers  civilization  anthropology  speculation  article  🎩  wealth-of-nations  track-record  time-series  multi  econotariat  pseudoE  analysis  wealth  org:ngo  pic  wiki  visualization  world  usa  britain  europe  germanic  japan  asia  china  india  pro-rata  the-great-west-whale  anglosphere  eastern-europe  latin-america  occident  sinosphere  orient  africa  divergence  comparison  within-without 
april 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]
econotariat  pseudoE  broad-econ  economics  econometrics  growth-econ  education  human-capital  labor  correlation  null-result  world  developing-world  commentary  spearhead  garett-jones  twitter  social  pic  discussion  econ-metrics  rindermann-thompson  causation  endo-exo  biodet  data  chart  knowledge  article  wealth-of-nations  latin-america  study  path-dependence  divergence  🎩  curvature  microfoundations  multi  convexity-curvature  nonlinearity  hanushek  volo-avolo  endogenous-exogenous  backup  pdf  people  policy  monetary-fiscal  wonkish  cracker-econ  news  org:mag  local-global  higher-ed  impetus  signaling  rhetoric  contrarianism  domestication  propaganda  ratty  hanson  books  review  recommendations  distribution  externalities  cost-benefit  summary  natural-experiment  critique  rent-seeking  mobility  supply-demand  intervention  shift  social-choice  government  incentives  interests  q-n-a  street-fighting  objektbuch  X-not-about-Y  marginal-rev  c:***  qra  info-econ  info-dynamics  org:econlib  yvain  ssc  politics  medicine  stories 
april 2017 by nhaliday
Annotating Greg Cochran’s interview with James Miller
https://westhunt.wordpress.com/2017/04/05/interview-2/
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
https://westhunt.wordpress.com/2017/04/05/interview-2/#comment-90299
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.

https://westhunt.wordpress.com/2017/03/25/ramble-on/
https://westhunt.wordpress.com/2017/03/24/topics/
https://soundcloud.com/user-519115521/greg-cochran-part-1
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
Was the Wealth of Nations Determined in 1000 BC?
Our most interesting, strong, and robust results are for the association of 1500 AD technology with per capita income and technology adoption today. We also find robust and significant technological persistence from 1000 BC to 0 AD, and from 0 AD to 1500 AD.

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

https://economix.blogs.nytimes.com/2010/08/02/was-todays-poverty-determined-in-1000-b-c/

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

Creators: Oana Borcan, Ola Olsson & Louis Putterman

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

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

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

I wonder if U-shape is due to Ibn Kaldun-Turchin style effect on asabiya? They suggest sunk costs and ossified institutions.
study  economics  growth-econ  history  antiquity  medieval  cliometrics  macro  path-dependence  hive-mind  garett-jones  spearhead  biodet  🎩  🌞  human-capital  divergence  multi  roots  demographics  the-great-west-whale  europe  china  asia  technology  easterly  definite-planning  big-picture  big-peeps  early-modern  stylized-facts  s:*  broad-econ  track-record  migration  assimilation  chart  frontier  prepping  discovery  biophysical-econ  cultural-dynamics  wealth-of-nations  ideas  occident  microfoundations  news  org:rec  popsci  age-of-discovery  expansionism  conquest-empire  pdf  piracy  world  developing-world  deep-materialism  dataset  time  data  database  time-series  leviathan  political-econ  polisci  iron-age  mostly-modern  government  institutions  correlation  curvature  econ-metrics  wealth  geography  walls  within-group  nonlinearity  convexity-curvature  models  marginal  wire-guided  branches  cohesion  organizing  hari-seldon 
march 2017 by nhaliday
Discovering Limits to Growth | Do the Math
https://en.wikipedia.org/wiki/The_Limits_to_Growth
http://www.unz.com/akarlin/review-limits-to-growth-meadows/
https://foundational-research.org/the-future-of-growth-near-zero-growth-rates/
One may of course be skeptical that this general trend will also apply to the growth of our technology and economy at large, as innovation seems to continually postpone our clash with the ceiling, yet it seems inescapable that it must. For in light of what we know about physics, we can conclude that exponential growth of the kinds we see today, in technology in particular and in our economy more generally, must come to an end, and do so relatively soon.
scitariat  prediction  hmm  economics  growth-econ  biophysical-econ  world  energy-resources  the-world-is-just-atoms  books  summary  quotes  commentary  malthus  models  dynamical  🐸  mena4  demographics  environment  org:bleg  nibble  regularizer  science-anxiety  deep-materialism  nihil  the-bones  whiggish-hegelian  multi  tetlock  trends  wiki  macro  pessimism  eh  primitivism  new-religion  cynicism-idealism  gnon  review  recommendations  long-short-run  futurism  ratty  miri-cfar  effective-altruism  hanson  econ-metrics  ems  magnitude  street-fighting  nitty-gritty  physics  data  phys-energy  🔬  multiplicative  iteration-recursion 
march 2017 by nhaliday
Macroeconomic Conditions and Opioid Abuse
We find that as the county unemployment rate increases by 1 percentage point, the opioid death rate (per 100,000) rises by 0.19 (3.6%) and the ED visit rate for opioid overdoses (per 100,000) increases by 0.95 (7.0%). We also uncover statistically significant increases in the overall drug death rate that are driven in most specifications by increases in opioid deaths. These results hold when performing a state, rather than county, level analysis. The results are primarily driven by adverse events among whites, although there is some sensitivity to choice of models in the results for nonwhites. Additionally, the findings are relatively stable across time periods; they do not pertain only to recession years, but instead represent a more generalizable and previously unexplored connection between economic development and the severe adverse consequences of substance abuse.
study  economics  macro  econometrics  labor  stagnation  drugs  opioids  malaise  epidemiology  sociology  current-events 
march 2017 by nhaliday
Redistributing from Capitalists to Workers: An Impossibility Theorem, Garett Jones | EconLog | Library of Economics and Liberty
org:econlib  econotariat  spearhead  garett-jones  economics  policy  rhetoric  thinking  analysis  no-go  redistribution  labor  taxes  cracker-econ  multi  piketty  news  org:lite  org:biz  pdf  links  political-econ  capital  simulation  operational  dynamic  explanation  time-preference  patience  wonkish  study  science-anxiety  externalities  long-short-run  models  map-territory  stylized-facts  s:*  broad-econ  chart  article  🎩  randy-ayndy  envy  bootstraps  inequality  absolute-relative  X-not-about-Y  volo-avolo  ideas  status  capitalism  nationalism-globalism  metabuch  optimate  aristos  open-closed  macro  government  proofs  equilibrium 
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.)

http://voxeu.org/article/endogenous-growth-and-lack-recovery-global-crisis
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
« earlier      
per page:    204080120160

bundles : dismalityeconframe

related tags

-_-  2016-election  80000-hours  :/  ability-competence  abortion-contraception-embryo  absolute-relative  abstraction  academia  accretion  accuracy  acemoglu  acm  advanced  advertising  africa  age-generation  age-of-discovery  aggregator  aging  agri-mindset  agriculture  ai  ai-control  albion  alesina  algebra  algorithms  alien-character  alignment  allodium  alt-inst  altruism  amazon  analogy  analysis  analytical-holistic  anarcho-tyranny  anglo  anglosphere  announcement  anomie  anthropology  antidemos  antiquity  aphorism  apollonian-dionysian  apple  applications  arbitrage  aristos  arms  arrows  art  article  asia  assimilation  assortative-mating  atmosphere  attaq  attention  audio  authoritarianism  autism  automation  autor  axelrod  axioms  backup  barons  bayesian  begin-middle-end  behavioral-econ  behavioral-gen  being-becoming  being-right  benevolence  best-practices  bias-variance  biases  big-peeps  big-picture  bio  biodet  bioinformatics  biophysical-econ  biotech  bitcoin  blog  blowhards  books  bootstraps  borjas  bounded-cognition  branches  brands  brexit  britain  broad-econ  business  business-models  c:*  c:**  c:***  calculator  california  canada  cancer  canon  capital  capitalism  career  cartoons  causation  censorship  chapman  charity  chart  checklists  chemistry  chicago  china  christianity  civic  civil-liberty  civilization  cjones-like  clarity  class  class-warfare  clever-rats  climate-change  cliometrics  clown-world  coalitions  coarse-fine  cocktail  cog-psych  cohesion  cold-war  collaboration  coming-apart  commentary  communism  community  comparison  compensation  competition  complement-substitute  complex-systems  composition-decomposition  computation  computer-vision  concentration-of-measure  concept  conceptual-vocab  concrete  confluence  confusion  conquest-empire  consumerism  context  contracts  contrarianism  control  convergence  convexity-curvature  cool  cooperate-defect  coordination  core-rats  corporation  correlation  corruption  cost-benefit  cost-disease  counter-revolution  counterfactual  courage  course  cracker-econ  creative  crime  criminal-justice  criminology  critique  crooked  crosstab  cryptocurrency  cs  cultural-dynamics  culture  culture-war  curiosity  current-events  curvature  cycles  cynicism-idealism  dan-luu  dark-arts  darwinian  data  data-science  database  dataset  dataviz  death  debate  debt  decentralized  decision-making  decision-theory  deep-materialism  defense  definite-planning  degrees-of-freedom  democracy  demographic-transition  demographics  density  descriptive  design  detail-architecture  deterrence  developing-world  developmental  differential  dignity  dimensionality  diogenes  direct-indirect  dirty-hands  discovery  discrimination  discussion  disease  distributed  distribution  divergence  diversity  domestication  dominant-minority  douthatish  drama  dropbox  drugs  duplication  duty  dynamic  dynamical  dysgenics  early-modern  easterly  eastern-europe  econ-metrics  econ-productivity  econometrics  economics  econotariat  education  EEA  effect-size  effective-altruism  efficiency  egalitarianism-hierarchy  eh  einstein  elections  electromag  elite  embodied  embodied-cognition  emergent  emotion  empirical  ems  encyclopedic  endo-exo  endogenous-exogenous  ends-means  energy-resources  engineering  enhancement  enlightenment-renaissance-restoration-reformation  entertainment  entrepreneurialism  entropy-like  environment  environmental-effects  envy  epidemiology  epistemic  equilibrium  ergodic  error  essay  essence-existence  estimate  ethanol  ethical-algorithms  ethics  EU  europe  events  evidence  evidence-based  evolution  evopsych  examples  exit-voice  expansionism  expert  expert-experience  explanans  explanation  exploratory  exposition  expression-survival  externalities  extra-introversion  facebook  faq  farmers-and-foragers  fashun  FDA  fermi  fertility  feudal  fiction  field-study  film  finance  fitness  flexibility  fluid  flux-stasis  focus  food  foreign-lang  foreign-policy  formal-values  free-riding  frequency  frontier  fungibility-liquidity  futurism  gallic  galor-like  games  garett-jones  gedanken  gender  gender-diff  gene-drift  general-survey  generalization  genetics  genomics  geoengineering  geography  geopolitics  germanic  giants  gibbon  gnon  gnosis-logos  gnxp  god-man-beast-victim  google  gotchas  government  grad-school  gray-econ  great-powers  gregory-clark  grokkability-clarity  group-level  group-selection  growth  growth-econ  GT-101  guide  guilt-shame  GWAS  gwern  GxE  h2o  hanson  hanushek  happy-sad  hard-tech  hari-seldon  harvard  health  healthcare  heavy-industry  henrich  heterodox  heuristic  hi-order-bits  hidden-motives  high-variance  higher-ed  history  hive-mind  hmm  hn  homepage  homo-hetero  honor  houellebecq  housing  hsu  human-bean  human-capital  human-ml  human-study  humility  huntington  hypochondria  hypocrisy  hypothesis-testing  ideas  identity-politics  ideology  idk  iidness  illusion  impact  impetus  impro  incentives  india  individualism-collectivism  industrial-org  industrial-revolution  inequality  info-dynamics  info-econ  info-foraging  infrastructure  init  innovation  input-output  insight  instinct  institutions  integrity  intel  intellectual-property  intelligence  interdisciplinary  interests  internet  intersection  intersection-connectedness  intervention  interview  intricacy  intuition  investing  iq  iraq-syria  iron-age  is-ought  islam  israel  isteveish  iteration-recursion  janus  japan  jargon  jobs  journos-pundits  judgement  justice  kinship  kissinger  knowledge  korea  krugman  kumbaya-kult  labor  language  larry-summers  latin-america  law  leadership  learning  lecture-notes  lee-kuan-yew  left-wing  legacy  legibility  len:long  len:short  lens  lesswrong  let-me-see  letters  leviathan  life-history  limits  linear-algebra  links  list  literature  lived-experience  local-global  logic  logistics  lol  long-short-run  long-term  longevity  longform  longitudinal  love-hate  low-hanging  lurid  machiavelli  machine-learning  macro  madisonian  magnitude  malaise  male-variability  malthus  management  managerial-state  map-territory  maps  marginal  marginal-rev  market-failure  market-power  markets  matching  math  math.CA  math.GR  math.NT  math.RT  meaningness  measure  measurement  media  medicine  medieval  mediterranean  memes(ew)  MENA  mena4  meta-analysis  meta:medicine  meta:prediction  meta:reading  meta:rhetoric  meta:war  metabolic  metabuch  metameta  methodology  metrics  micro  microfoundations  microsoft  migrant-crisis  migration  military  miri-cfar  mobile  mobility  models  modernity  mokyr-allen-mccloskey  moments  monetary-fiscal  money  mooc  mood-affiliation  morality  mostly-modern  multi  multiplicative  murray  music-theory  musk  mutation  myth  n-factor  narrative  nascent-state  nationalism-globalism  natural-experiment  nature  neocons  network-structure  neuro  new-religion  news  nibble  nietzschean  nihil  nitty-gritty  nl-and-so-can-you  no-go  noahpinion  noble-lie  noblesse-oblige  nonlinearity  nordic  north-weingast-like  northeast  nuclear  null-result  numerics  nutrition  nyc  obama  objektbuch  occam  occident  old-anglo  open-closed  operational  opioids  optimate  optimism  optimization  order-disorder  ORFE  org:anglo  org:biz  org:bleg  org:bv  org:data  org:davos  org:econlib  org:edu  org:fin  org:foreign  org:gov  org:lite  org:local  org:mag  org:med  org:nat  org:ngo  org:popup  org:rec  org:sci  org:theos  organizing  orient  orwellian  oscillation  outcome-risk  outliers  p:someday  paleocon  papers  paradox  parallax  parasites-microbiome  parenting  parsimony  passive-investing  path-dependence  patho-altruism  patience  paul-romer  paying-rent  pdf  peace-violence  people  personal-finance  personality  pessimism  phalanges  pharma  phd  philosophy  phys-energy  physics  pic  piketty  piracy  planning  plots  poast  podcast  polanyi-marx  polarization  policy  polis  polisci  political-econ  politics  poll  pop-diff  pop-structure  popsci  population  population-genetics  populism  postmortem  postrat  power  power-law  pragmatic  pre-2013  pre-ww2  prediction  prediction-markets  preference-falsification  prepping  preprint  presentation  primitivism  princeton  prioritizing  priors-posteriors  privacy  pro-rata  probability  problem-solving  prof  profile  programming  progression  proofs  propaganda  properties  property-rights  proposal  protestant-catholic  prudence  pseudoE  psych-architecture  psychiatry  psychology  psychometrics  public-goodish  public-health  publishing  putnam-like  q-n-a  qra  quantitative-qualitative  quantum  questions  quixotic  quotes  race  random  randy-ayndy  ranking  rant  rationality  ratty  reading  real-nominal  realness  realpolitik  reason  recommendations  recruiting  reddit  redistribution  reference  reflection  regional-scatter-plots  regression  regularizer  regulation  relativity  religion  rent-seeking  replication  responsibility  retention  review  revolution  rhetoric  rhythm  right-wing  rigor  rindermann-thompson  risk  ritual  robotics  roots  rot  russia  s-factor  s:*  s:**  s:***  sapiens  scale  schelling  scholar  science  science-anxiety  scifi-fantasy  scitariat  scott-sumner  search  securities  selection  self-control  sequential  sex  sexuality  shakespeare  shift  sib-study  signal-noise  signaling  simler  simulation  sinosphere  skeleton  skunkworks  slides  social  social-capital  social-choice  social-norms  social-psych  social-science  social-structure  sociality  society  sociology  socs-and-mops  software  space  spatial  spearhead  speculation  speed  speedometer  spock  sports  spreading  ssc  stackex  stagnation  stanford  startups  stat-mech  stat-power  statesmen  stats  status  stereotypes  stochastic-processes  stock-flow  stories  strategy  straussian  stream  street-fighting  stress  stripe  structure  study  studying  stylized-facts  subculture  success  sulla  summary  supply-demand  survey  sv  synchrony  synthesis  system-design  systematic-ad-hoc  szabo  tactics  tails  taxes  tcs  teaching  tech  technocracy  technology  techtariat  telos-atelos  temperance  temperature  terrorism  tetlock  the-bones  the-classics  the-devil  the-founding  the-great-west-whale  the-monster  the-south  the-watchers  the-west  the-world-is-just-atoms  theory-of-mind  theos  thermo  thick-thin  thiel  things  thinking  threat-modeling  thucydides  time  time-preference  time-series  time-use  todo  toolkit  tools  top-n  topology  traces  track-record  tracker  trade  tradeoffs  tradition  transportation  trends  tribalism  trivia  troll  trump  trust  truth  tumblr  turchin  twitter  unaffiliated  uncertainty  unintended-consequences  unit  universalism-particularism  urban  urban-rural  us-them  usa  vague  values  vampire-squid  variance-components  venture  video  virginia-DC  visual-understanding  visualization  visuo  vitality  volo-avolo  walls  walter-scheidel  war  wealth  wealth-of-nations  welfare-state  west-hunter  westminster  whiggish-hegelian  white-paper  wiki  winner-take-all  wire-guided  wisdom  within-group  within-without  wonkish  working-stiff  world  world-war  writing  X-not-about-Y  yc  yvain  zeitgeist  zero-positive-sum  zooming  🌞  🎓  🎩  🐝  🐸  👽  🔬  🤖  🦉 

Copy this bookmark:



description:


tags: