nhaliday + map-territory   68

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

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

...

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

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

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

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

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

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

...

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

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

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

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

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

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

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

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

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

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

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

...

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

Yet one wonders how long such luck will last. This brings me back to the title of Rubin’s book, his “uncertain world.” In such a world, the vast majority things are outside our control, determined by God or luck. After we have given our best and once the final card is drawn, we should neither become too excited by what we have achieved nor too depressed by what we failed to … [more]
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january 2018 by nhaliday
Reconsidering the Heritability of Intelligence in Adulthood: Taking Assortative Mating and Cultural Transmission into Account
Heritability estimates of general intelligence in adulthood generally range from 75 to 85%, with all heritability due to additive genetic influences, while genetic dominance and shared environmental factors are absent, or too small to be detected. These estimates are derived from studies based on the classical twin design and are based on the assumption of random mating. Yet, considerable positive assortative mating has been reported for general intelligence. Unmodeled assortative mating may lead to biased estimates of the relative magnitude of genetic and environmental factors.

...

Under the preferred phenotypic assortment model, the variance of intelligence in adulthood was not only due to non-shared environmental (18%) and additive genetic factors (44%) but also to non-additive genetic factors (27%) and phenotypic assortment (11%).This non-additive nature of genetic influences on intelligence needs to be accommodated in future GWAS studies for intelligence.
study  biodet  behavioral-gen  psychology  cog-psych  iq  twin-study  sib-study  biases  gotchas  models  map-territory  assortative-mating  variance-components  🌞  nonlinearity  regularizer  intricacy 
november 2017 by nhaliday
Two theories of home heat control - ScienceDirect
People routinely develop their own theories to explain the world around them. These theories can be useful even when they contradict conventional technical wisdom. Based on in-depth interviews about home heating and thermostat setting behavior, the present study presents two theories people use to understand and adjust their thermostats. The two theories are here called the feedback theory and the valve theory. The valve theory is inconsistent with engineering knowledge, but is estimated to be held by 25% to 50% of Americans. Predictions of each of the theories are compared with the operations normally performed in home heat control. This comparison suggests that the valve theory may be highly functional in normal day-to-day use. Further data is needed on the ways this theory guides behavior in natural environments.
study  hci  ux  hardware  embodied  engineering  dirty-hands  models  thinking  trivia  cocktail  map-territory  realness  neurons  psychology  cog-psych  social-psych  error  usa  poll  descriptive  temperature  protocol 
september 2017 by nhaliday
All models are wrong - Wikipedia
Box repeated the aphorism in a paper that was published in the proceedings of a 1978 statistics workshop.[2] The paper contains a section entitled "All models are wrong but some are useful". The section is copied below.

Now it would be very remarkable if any system existing in the real world could be exactly represented by any simple model. However, cunningly chosen parsimonious models often do provide remarkably useful approximations. For example, the law PV = RT relating pressure P, volume V and temperature T of an "ideal" gas via a constant R is not exactly true for any real gas, but it frequently provides a useful approximation and furthermore its structure is informative since it springs from a physical view of the behavior of gas molecules.

For such a model there is no need to ask the question "Is the model true?". If "truth" is to be the "whole truth" the answer must be "No". The only question of interest is "Is the model illuminating and useful?".
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august 2017 by nhaliday
Is the economy illegible? | askblog
In the model of the economy as a GDP factory, the most fundamental equation is the production function, Y = f(K,L).

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

Let me stipulate that the economy is legible to the extent that this model can be applied usefully to explain economic developments. I want to point out that the economy, while never as legible as economists might have thought, is rapidly becoming less legible.
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august 2017 by nhaliday
Is the U.S. Aggregate Production Function Cobb-Douglas? New Estimates of the Elasticity of Substitution∗
world-wide: http://www.socsci.uci.edu/~duffy/papers/jeg2.pdf
https://www.weforum.org/agenda/2016/01/is-the-us-labour-share-as-constant-as-we-thought
https://www.economicdynamics.org/meetpapers/2015/paper_844.pdf
We find that IPP capital entirely explains the observed decline of the US labor share, which otherwise is secularly constant over the past 65 years for structures and equipment capital. The labor share decline simply reflects the fact that the US economy is undergoing a transition toward a larger IPP sector.
https://ideas.repec.org/p/red/sed015/844.html
http://www.robertdkirkby.com/blog/2015/summary-of-piketty-i/
https://www.brookings.edu/bpea-articles/deciphering-the-fall-and-rise-in-the-net-capital-share/
The Fall of the Labor Share and the Rise of Superstar Firms: http://www.nber.org/papers/w23396
The Decline of the U.S. Labor Share: https://www.brookings.edu/wp-content/uploads/2016/07/2013b_elsby_labor_share.pdf
Table 2 has industry disaggregation
Estimating the U.S. labor share: https://www.bls.gov/opub/mlr/2017/article/estimating-the-us-labor-share.htm

Why Workers Are Losing to Capitalists: https://www.bloomberg.com/view/articles/2017-09-20/why-workers-are-losing-to-capitalists
Automation and offshoring may be conspiring to reduce labor's share of income.
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july 2017 by nhaliday
Defection – quas lacrimas peperere minoribus nostris!
https://quaslacrimas.wordpress.com/2017/06/28/discussion-of-defection/

Kindness Against The Grain: https://srconstantin.wordpress.com/2017/06/08/kindness-against-the-grain/
I’ve heard from a number of secular-ish sources (Carse, Girard, Arendt) that the essential contribution of Christianity to human thought is the concept of forgiveness. (Ribbonfarm also has a recent post on the topic of forgiveness.)

I have never been a Christian and haven’t even read all of the New Testament, so I’ll leave it to commenters to recommend Christian sources on the topic.

What I want to explore is the notion of kindness without a smooth incentive gradient.

The Social Module: https://bloodyshovel.wordpress.com/2015/10/09/the-social-module/
Now one could propose that the basic principle of human behavior is to raise the SP number. Sure there’s survival and reproduction. Most people would forget all their socialization if left hungry and thirsty for days in the jungle. But more often than not, survival and reproduction depend on being high status; having a good name among your peers is the best way to get food, housing and hot mates.

The way to raise one’s SP number depends on thousands of different factors. We could grab most of them and call them “culture”. In China having 20 teenage mistresses as an old man raises your SP; in Western polite society it is social death. In the West making a fuss about disobeying one’s parents raises your SP, everywhere else it lowers it a great deal. People know that; which is why bureaucrats in China go to great lengths to acquire a stash of young women (who they seldom have time to actually enjoy), while teenagers in the West go to great lengths to be annoying to their parents for no good reason.

...

It thus shouldn’t surprise us that something as completely absurd as Progressivism is the law of the land in most of the world today, even though it denies obvious reality. It is not the case that most people know that progressive points are all bogus, but obey because of fear or cowardice. No, an average human brain has much more neurons being used to scan the social climate and see how SP are allotted, than neurons being used to analyze patterns in reality to ascertain the truth. Surely your brain does care a great deal about truth in some very narrow areas of concern to you. Remember Conquest’s first law: Everybody is Conservative about what he knows best. You have to know the truth about what you do, if you are to do it effectively.

But you don’t really care about truth anywhere else. And why would you? It takes time and effort you can’t really spare, and it’s not really necessary. As long as you have some area of specialization where you can make a living, all the rest you must do to achieve survival and reproduction is to raise your SP so you don’t get killed and your guts sacrificed to the mountain spirits.

SP theory (I accept suggestions for a better name) can also explains the behavior of leftists. Many conservatives of a medium level of enlightenment point out the paradox that leftists historically have held completely different ideas. Leftism used to be about the livelihood of industrial workers, now they agitate about the environment, or feminism, or foreigners. Some people would say that’s just historical change, or pull a No True Scotsman about this or that group not being really leftists. But that’s transparent bullshit; very often we see a single person shifting from agitating about Communism and worker rights, to agitate about global warming or rape culture.

...

The leftist strategy could be defined as “psychopathic SP maximization”. Leftists attempt to destroy social equilibrium so that they can raise their SP number. If humans are, in a sense, programmed to constantly raise their status, well high status people by definition can’t raise it anymore (though they can squabble against each other for marginal gains), their best strategy is to freeze society in place so that they can enjoy their superiority. High status people by definition have power, and thus social hierarchy during human history tends to be quite stable.

This goes against the interests of many. First of all the lower status people, who, well, want to raise their status, but can’t manage to do so. And it also goes against the interests of the particularly annoying members of the upper class who want to raise their status on the margin. Conservative people can be defined as those who, no matter the absolute level, are in general happy with it. This doesn’t mean they don’t want higher status (by definition all humans do), but the output of other brain modules may conclude that attempts to raise SP might threaten one’s survival and reproduction; or just that the chances of raising one’s individual SP is hopeless, so one might as well stay put.

...

You can’t blame people for being logically inconsistent; because they can’t possibly know anything about all these issues. Few have any experience or knowledge about evolution and human races, or about the history of black people to make an informed judgment on HBD. Few have time to learn about sex differences, and stuff like the climate is as close to unknowable as there is. Opinions about anything but a very narrow area of expertise are always output of your SP module, not any judgment of fact. People don’t know the facts. And even when they know; I mean most people have enough experience with sex differences and black dysfunction to be quite confident that progressive ideas are false. But you can never be sure. As Hume said, the laws of physics are a judgment of habit; who is to say that a genie isn’t going to change all you know the next morning? At any rate, you’re always better off toeing the line, following the conventional wisdom, and keeping your dear SP. Perhaps you can even raise them a bit. And that is very nice. It is niceness itself.

Leftism is just an easy excuse: https://bloodyshovel.wordpress.com/2015/03/01/leftism-is-just-an-easy-excuse/
Unless you’re not the only defector. You need a way to signal your intention to defect, so that other disloyal fucks such as yourself (and they’re bound to be others) can join up, thus reducing the likely costs of defection. The way to signal your intention to defect is to come up with a good excuse. A good excuse to be disloyal becomes a rallying point through which other defectors can coordinate and cover their asses so that the ruling coalition doesn’t punish them. What is a good excuse?

Leftism is a great excuse. Claiming that the ruling coalition isn’t leftist enough, isn’t holy enough, not inclusive enough of women, of blacks, of gays, or gorillas, of pedophiles, of murderous Salafists, is the perfect way of signalling your disloyalty towards the existing power coalition. By using the existing ideology and pushing its logic just a little bit, you ensure that the powerful can’t punish you. At least not openly. And if you’re lucky, the mass of disloyal fucks in the ruling coalition might join your banner, and use your exact leftist point to jump ship and outflank the powerful.

...

The same dynamic fuels the flattery inflation one sees in monarchical or dictatorial systems. In Mao China, if you want to defect, you claim to love Mao more than your boss. In Nazi Germany, you proclaim your love for Hitler and the great insight of his plan to take Stalingrad. In the Roman Empire, you claimed that Caesar is a God, son of Hercules, and those who deny it are treacherous bastards. In Ancient Persia you loudly proclaimed your faith in the Shah being the brother of the Sun and the Moon and King of all Kings on Earth. In Reformation Europe you proclaimed that you have discovered something new in the Bible and everybody else is damned to hell. Predestined by God!

...

And again: the precise content of the ideological point doesn’t matter. Your human brain doesn’t care about ideology. Humans didn’t evolve to care about Marxist theory of class struggle, or about LGBTQWERTY theories of social identity. You just don’t know what it means. It’s all abstract points you’ve been told in a classroom. It doesn’t actually compute. Nothing that anybody ever said in a political debate ever made any actual, concrete sense to a human being.

So why do we care so much about politics? What’s the point of ideology? Ideology is just the water you swim in. It is a structured database of excuses, to be used to signal your allegiance or defection to the existing ruling coalition. Ideology is just the feed of the rationalization Hamster that runs incessantly in that corner of your brain. But it is immaterial, and in most cases actually inaccessible to the logical modules in your brain.

Nobody ever acts on their overt ideological claims if they can get away with it. Liberals proclaim their faith in the potential of black children while clustering in all white suburbs. Communist party members loudly talk about the proletariat while being hedonistic spenders. Al Gore talks about Global Warming while living in a lavish mansion. Cognitive dissonance, you say? No; those cognitive systems are not connected in the first place.

...

And so, every little step in the way, power-seekers moved the consensus to the left. And open societies, democratic systems are by their decentralized nature, and by the size of their constituencies, much more vulnerable to this sort of signalling attacks. It is but impossible to appraise and enforce the loyalty of every single individual involved in a modern state. There’s too many of them. A Medieval King had a better chance of it; hence the slow movement of ideological innovation in those days. But the bigger the organization, the harder it is to gather accurate information of the loyalty of the whole coalition; and hence the ideological movement accelerates. And there is no stopping it.

Like the Ancients, We Have Gods. They’ll Get Greater: http://www.overcomingbias.com/2018/04/like-the-ancients-we-have-gods-they-may-get… [more]
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june 2017 by nhaliday
Econometric Modeling as Junk Science
The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics: https://www.aeaweb.org/articles?id=10.1257/jep.24.2.3

On data, experiments, incentives and highly unconvincing research – papers and hot beverages: https://papersandhotbeverages.wordpress.com/2015/10/31/on-data-experiments-incentives-and-highly-unconvincing-research/
In my view, it has just to do with the fact that academia is a peer monitored organization. In the case of (bad) data collection papers, issues related to measurement are typically boring. They are relegated to appendices, no one really has an incentive to monitor it seriously. The problem is similar in formal theory: no one really goes through the algebra in detail, but it is in principle feasible to do it, and, actually, sometimes these errors are detected. If discussing the algebra of a proof is almost unthinkable in a seminar, going into the details of data collection, measurement and aggregation is not only hard to imagine, but probably intrinsically infeasible.

Something different happens for the experimentalist people. As I was saying, I feel we have come to a point in which many papers are evaluated based on the cleverness and originality of the research design (“Using the World Cup qualifiers as an instrument for patriotism!? Woaw! how cool/crazy is that! I wish I had had that idea”). The sexiness of the identification strategy has too often become a goal in itself. When your peers monitor you paying more attention to the originality of the identification strategy than to the research question, you probably have an incentive to mine reality for ever crazier discontinuities. It is true methodologists have been criticized in the past for analogous reasons, such as being guided by the desire to increase mathematical complexity without a clear benefit. But, if you work with pure formal theory or statistical theory, your work is not meant to immediately answer question about the real world, but instead to serve other researchers in their quest. This is something that can, in general, not be said of applied CI work.

https://twitter.com/pseudoerasmus/status/662007951415238656
This post should have been entitled “Zombies who only think of their next cool IV fix”
https://twitter.com/pseudoerasmus/status/662692917069422592
massive lust for quasi-natural experiments, regression discontinuities
barely matters if the effects are not all that big
I suppose even the best of things must reach their decadent phase; methodological innov. to manias……

https://twitter.com/cblatts/status/920988530788130816
Following this "collapse of small-N social psych results" business, where do I predict econ will collapse? I see two main contenders.
One is lab studies. I dallied with these a few years ago in a Kenya lab. We ran several pilots of N=200 to figure out the best way to treat
and to measure the outcome. Every pilot gave us a different stat sig result. I could have written six papers concluding different things.
I gave up more skeptical of these lab studies than ever before. The second contender is the long run impacts literature in economic history
We should be very suspicious since we never see a paper showing that a historical event had no effect on modern day institutions or dvpt.
On the one hand I find these studies fun, fascinating, and probably true in a broad sense. They usually reinforce a widely believed history
argument with interesting data and a cute empirical strategy. But I don't think anyone believes the standard errors. There's probably a HUGE
problem of nonsignificant results staying in the file drawer. Also, there are probably data problems that don't get revealed, as we see with
the recent Piketty paper (http://marginalrevolution.com/marginalrevolution/2017/10/pikettys-data-reliable.html). So I take that literature with a vat of salt, even if I enjoy and admire the works
I used to think field experiments would show little consistency in results across place. That external validity concerns would be fatal.
In fact the results across different samples and places have proven surprisingly similar across places, and added a lot to general theory
Last, I've come to believe there is no such thing as a useful instrumental variable. The ones that actually meet the exclusion restriction
are so weird & particular that the local treatment effect is likely far different from the average treatment effect in non-transparent ways.
Most of the other IVs don't plausibly meet the e clue ion restriction. I mean, we should be concerned when the IV estimate is always 10x
larger than the OLS coefficient. This I find myself much more persuaded by simple natural experiments that use OLS, diff in diff, or
discontinuities, alongside randomized trials.

What do others think are the cliffs in economics?
PS All of these apply to political science too. Though I have a special extra target in poli sci: survey experiments! A few are good. I like
Dan Corstange's work. But it feels like 60% of dissertations these days are experiments buried in a survey instrument that measure small
changes in response. These at least have large N. But these are just uncontrolled labs, with negligible external validity in my mind.
The good ones are good. This method has its uses. But it's being way over-applied. More people have to make big and risky investments in big
natural and field experiments. Time to raise expectations and ambitions. This expectation bar, not technical ability, is the big advantage
economists have over political scientists when they compete in the same space.
(Ok. So are there any friends and colleagues I haven't insulted this morning? Let me know and I'll try my best to fix it with a screed)

HOW MUCH SHOULD WE TRUST DIFFERENCES-IN-DIFFERENCES ESTIMATES?∗: https://economics.mit.edu/files/750
Most papers that employ Differences-in-Differences estimation (DD) use many years of data and focus on serially correlated outcomes but ignore that the resulting standard errors are inconsistent. To illustrate the severity of this issue, we randomly generate placebo laws in state-level data on female wages from the Current Population Survey. For each law, we use OLS to compute the DD estimate of its “effect” as well as the standard error of this estimate. These conventional DD standard errors severely understate the standard deviation of the estimators: we find an “effect” significant at the 5 percent level for up to 45 percent of the placebo interventions. We use Monte Carlo simulations to investigate how well existing methods help solve this problem. Econometric corrections that place a specific parametric form on the time-series process do not perform well. Bootstrap (taking into account the auto-correlation of the data) works well when the number of states is large enough. Two corrections based on asymptotic approximation of the variance-covariance matrix work well for moderate numbers of states and one correction that collapses the time series information into a “pre” and “post” period and explicitly takes into account the effective sample size works well even for small numbers of states.

‘METRICS MONDAY: 2SLS–CHRONICLE OF A DEATH FORETOLD: http://marcfbellemare.com/wordpress/12733
As it turns out, Young finds that
1. Conventional tests tend to overreject the null hypothesis that the 2SLS coefficient is equal to zero.
2. 2SLS estimates are falsely declared significant one third to one half of the time, depending on the method used for bootstrapping.
3. The 99-percent confidence intervals (CIs) of those 2SLS estimates include the OLS point estimate over 90 of the time. They include the full OLS 99-percent CI over 75 percent of the time.
4. 2SLS estimates are extremely sensitive to outliers. Removing simply one outlying cluster or observation, almost half of 2SLS results become insignificant. Things get worse when removing two outlying clusters or observations, as over 60 percent of 2SLS results then become insignificant.
5. Using a Durbin-Wu-Hausman test, less than 15 percent of regressions can reject the null that OLS estimates are unbiased at the 1-percent level.
6. 2SLS has considerably higher mean squared error than OLS.
7. In one third to one half of published results, the null that the IVs are totally irrelevant cannot be rejected, and so the correlation between the endogenous variable(s) and the IVs is due to finite sample correlation between them.
8. Finally, fewer than 10 percent of 2SLS estimates reject instrument irrelevance and the absence of OLS bias at the 1-percent level using a Durbin-Wu-Hausman test. It gets much worse–fewer than 5 percent–if you add in the requirement that the 2SLS CI that excludes the OLS estimate.

Methods Matter: P-Hacking and Causal Inference in Economics*: http://ftp.iza.org/dp11796.pdf
Applying multiple methods to 13,440 hypothesis tests reported in 25 top economics journals in 2015, we show that selective publication and p-hacking is a substantial problem in research employing DID and (in particular) IV. RCT and RDD are much less problematic. Almost 25% of claims of marginally significant results in IV papers are misleading.

https://twitter.com/NoamJStein/status/1040887307568664577
Ever since I learned social science is completely fake, I've had a lot more time to do stuff that matters, like deadlifting and reading about Mediterranean haplogroups
--
Wait, so, from fakest to realest IV>DD>RCT>RDD? That totally matches my impression.
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june 2017 by nhaliday
Validation is a Galilean enterprise
We contend that Frey's analyses actually have little bearing on the external validity of the PGG. Evidence from recent experiments using modified versions of the PGG and stringent comprehension checks indicate that individual differences in people's tendencies to contribute to the public good are better explained by individual differences in participants' comprehension of the game's payoff structure than by individual differences in cooperativeness (Burton-Chellew, El Mouden, & West, 2016). For example, only free riders reliably understand right away that complete defection maximizes one's own payoff, regardless of how much other participants contribute. This difference in comprehension alone explains the so-called free riders' low PGG contributions. These recent results also provide a new interpretation of why conditional cooperators often contribute generously in early rounds, and then less in later rounds (Fischbacher et al., 2001). Fischbacher et al. (2001) attribute the relatively high contributions in the early rounds to cooperativeness and the subsequent decline in contributions to conditional cooperators' frustration with free riders. In reality, the decline in cooperation observed over the course of PGGs occurs because so-called conditional cooperators initially believe that their payoff-maximizing decision depends on whether others contribute, but eventually learn that contributing never benefits the contributor (Burton-Chellew, Nax, & West, 2015). Because contributions in the PGG do not actually reflect cooperativeness, there is no real-world cooperative setting to which inferences about contributions in the PGG can generalize.
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june 2017 by nhaliday
The Limits of Public Choice Theory – Jacobite
Many people believe that politics is difficult because of incentives: voters vote for their self interest; bureaucrats deliberately don’t solve problems to enlarge their departments; and elected officials maximize votes for power and sell out to lobbyists. But this cynical view is mostly wrong—politics, insofar as it has problems, has problems not because people are selfish—it has problems because people have wrong ideas. In fact, people mostly act surprisingly altruistically, motivated by trying to do good for their country.

...

I got into politics and ideas as a libertarian. I was attracted by the idea of public choice as a universal theory of politics. It’s intuitively appealing, methodologically individualist, and it supported all of the things I already believed. And it’s definitely true to some extent—there is a huge amount of evidence that it affects things somewhat. But it’s terrible as a general theory of politics in the developed world. Our policies are bad because voters are ignorant and politicians believe in things too much, not because everyone is irredeemably cynical and atavistic.

interesting take, HBD?: https://twitter.com/pseudoerasmus/status/869882831572434946

recommended by Garett Jones:
https://web.archive.org/web/20110517015819/http://reviewsindepth.com/2010/03/yes-prime-minister-the-most-cunning-political-propaganda-ever-conceived/
https://en.wikipedia.org/wiki/The_Thick_of_It
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may 2017 by nhaliday
Thursday assorted links - Marginal REVOLUTION
2. “A new study of English spelling practices demonstrates that the way we spell words is much more orderly and self-organizing than previously thought.”

3. Why we cry, and the economics of weeping. And Michael Cannon on the new health care bill.

4. Economic ideas we should forget (keep on clicking through to see the whole list). By no means do I always agree — the Coase theorem??
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march 2017 by nhaliday
Redistributing from Capitalists to Workers: An Impossibility Theorem, Garett Jones | EconLog | Library of Economics and Liberty
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february 2017 by nhaliday
Links 2/17: Site Your Sources | Slate Star Codex
The United States not only does poorly on education benchmark PISA, but each decile of wealth also does poorly compared to equivalent deciles in other countries. I find this surprising. Does this torpedo the theory that each US ethnic group does as well as its foreign counterparts, and US underperformance is a Simpson’s Paradox on ethnic distribution?

Twitter: @EveryoneIsDril.

New Study Finds Performance-Enhancing Drugs For Chess. Okay, fine, just modafinil, which we already knew about, but the exact pattern is interesting. Modafinil makes people take longer to make their moves, but the moves are ultimately better. That suggests that its advantage is not increasing IQ per se, but in giving people the increased attention span/concentration to work harder on finding good moves. I think this elegantly ties together a lot of stuff into a good explanation of modafinil’s cognitive-enhancing properties.

New Zealand Wants To Know How Peter Thiel Became A Secret Citizen. Give up, New Zealand; Peter Thiel is a citizen of any country he wants to be a citizen of. Also: Peter Thiel Denies California Governor Run Despite Mysterious Group’s Backing.

I was going to link to the paper Physics Envy May Be Hazardous To Your Wealth, but the part that actually interested me is small enough that I’m just going to include it here as a jpg (h/t Julia Galef).

Nature: Prevalence And Architecture Of De Novo Mutations In Developmental Disorders. There’s been a lot of debate over paternal age effects, and this paper helps clarify that by actually counting people’s de novo mutations and finding that children of older fathers (and to a lesser degree older mothers) have more of them. I am not sure to what degree this answers the objection that fathers with worse genes will tend to get married later; my impression is that it’s circumstantial evidence against (de novo mutations are more specific to paternal age than just bad genes) but not complete disproof.

Psssst, kid, wanna buy a parasitic worm? Key quote: “Those who experience the ‘hookworm bounce’ tend to describe it as ‘feeling as if they are teenagers again'” (h/t pistachi0n).

New paper in Crime And Delinquency: “We find no evidence that the number of fatal police shootings either increased or decreased post-Ferguson. Claims to the contrary are based on weak analyses of short-term trends.” This is especially surprising in light of claims that increased inner-city crime is caused by police withdrawing in order to prevent further fatal shootings; if that’s the police’s plan, it doesn’t seem to be working very well.

Intranasal ghrelin vaccine prevents obesity in mice.

Gene drive testing thwarted when organisms quickly develop resistance. There goes that idea.

New poll: Majority of Europeans support banning Muslim immigration. It’s an Internet-based poll, which is always cause for suspicion, but they seem to be a reputable organization and not the sort of group whose results are 100% due to trolling by 4chan, plus it’s consistent with some other results. Still pretty shocking and an existential-terror-level reminder of partisan bubbles. Also: Rasmussen finds most Americans support Trump’s refugee ban order.

Closely related: M.G. Miles makes the case for banning Muslim immigration. Maybe the first person I have seen make this case in a principled way; everyone else just seems to be screaming about stuff and demanding their readers reinterpret it into argument form. Also, he uses the word “terrorism” zero times, which seems like the correct number of times for a case of this sort. This is what people should be debating and responding to. Rebuttals by Americans would probably want to start with the differences between Muslim immigrants to Europe and Muslim immigrants to the US – Miles discusses the European case, but by my understanding these are very different populations with very different outcomes).

Second Enumerations podcast: Grognor reading interesting essays.

SSRN: Extreme Protest Tactics Reduce Popular Support For Social Movements: “We find across three experiments that extreme protest tactics decreased popular support for a given cause because they reduced feelings of identification with the movement. Though this effect obtained in tests of popular responses to extreme tactics used by animal rights, Black Lives Matter, and anti-Trump protests (Studies 1-3), we found that self-identified political activists were willing to use extreme tactics because they believed them to be effective for recruiting popular support.” Cf. The Toxoplasma Of Rage. (h/t Dain)

The Cagots were an underclass of people in medieval France whom everyone hated, with various purity laws around how decent people weren’t allowed to associate with/marry/touch/go near them. In the 1500s, the Pope personally intervened to tell the French to stop persecuting them, but the French ignored him and persecuted them more than ever. As far as anyone can tell, they looked, spoke, and acted just like everyone else, and exactly how they became so despised is one of the minor mysteries of medieval history.
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february 2017 by nhaliday
Information Processing: Machine Dreams
This is a controversial book because it demolishes not just the conventional history of the discipline, but its foundational assumptions. For example, once you start thinking about the information processing requirements that each agent (or even the entire system) must satisfy to find the optimal neoclassical equilibrium points, you realize the task is impossible. In fact, in some cases it has been rigorously shown to be beyond the capability of any universal Turing machine. Certainly, it seems beyond the plausible capabilities of a primitive species like homo sapiens. Once this bounded rationality (see also here) is taken into account, the whole notion of optimality of market equilibrium becomes far-fetched and speculative. It cannot be justified in any formal sense, and therefore cries out for experimental justification, which is not to be found.

I like this quote: This polymath who prognosticated that "science and technology would shift from a past emphasis on subjects of motion, force and energy to a future emphasis on subjects of communications, organization, programming and control," was spot on the money.
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february 2017 by nhaliday
The infinitesimal model | bioRxiv
Our focus here is on the infinitesimal model. In this model, one or several quantitative traits are described as the sum of a genetic and a non-genetic component, the first being distributed as a normal random variable centred at the average of the parental genetic components, and with a variance independent of the parental traits. We first review the long history of the infinitesimal model in quantitative genetics. Then we provide a definition of the model at the phenotypic level in terms of individual trait values and relationships between individuals, but including different evolutionary processes: genetic drift, recombination, selection, mutation, population structure, ... We give a range of examples of its application to evolutionary questions related to stabilising selection, assortative mating, effective population size and response to selection, habitat preference and speciation. We provide a mathematical justification of the model as the limit as the number M of underlying loci tends to infinity of a model with Mendelian inheritance, mutation and environmental noise, when the genetic component of the trait is purely additive. We also show how the model generalises to include epistatic effects. In each case, by conditioning on the pedigree relating individuals in the population, we incorporate arbitrary selection and population structure. We suppose that we can observe the pedigree up to the present generation, together with all the ancestral traits, and we show, in particular, that the genetic components of the individual trait values in the current generation are indeed normally distributed with a variance independent of ancestral traits, up to an error of order M^{-1/2}. Simulations suggest that in particular cases the convergence may be as fast as 1/M.

published version:
The infinitesimal model: Definition, derivation, and implications: https://sci-hub.tw/10.1016/j.tpb.2017.06.001

Commentary: Fisher’s infinitesimal model: A story for the ages: http://www.sciencedirect.com/science/article/pii/S0040580917301508?via%3Dihub
This commentary distinguishes three nested approximations, referred to as “infinitesimal genetics,” “Gaussian descendants” and “Gaussian population,” each plausibly called “the infinitesimal model.” The first and most basic is Fisher’s “infinitesimal” approximation of the underlying genetics – namely, many loci, each making a small contribution to the total variance. As Barton et al. (2017) show, in the limit as the number of loci increases (with enough additivity), the distribution of genotypic values for descendants approaches a multivariate Gaussian, whose variance–covariance structure depends only on the relatedness, not the phenotypes, of the parents (or whether their population experiences selection or other processes such as mutation and migration). Barton et al. (2017) call this rigorously defensible “Gaussian descendants” approximation “the infinitesimal model.” However, it is widely assumed that Fisher’s genetic assumptions yield another Gaussian approximation, in which the distribution of breeding values in a population follows a Gaussian — even if the population is subject to non-Gaussian selection. This third “Gaussian population” approximation, is also described as the “infinitesimal model.” Unlike the “Gaussian descendants” approximation, this third approximation cannot be rigorously justified, except in a weak-selection limit, even for a purely additive model. Nevertheless, it underlies the two most widely used descriptions of selection-induced changes in trait means and genetic variances, the “breeder’s equation” and the “Bulmer effect.” Future generations may understand why the “infinitesimal model” provides such useful approximations in the face of epistasis, linkage, linkage disequilibrium and strong selection.
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january 2017 by nhaliday
A Rejection of 'Broken Windows Policing' Over Race Actually Hurts Minority Neighborhoods | Manhattan Institute
https://twitter.com/BookOfTamara/status/778838226983268352
https://archive.is/ETLXf
Late-night slightly controversial criminal justice thread:

Proactive policing and crime control: https://www.nature.com/articles/s41562-017-0227-x
Evidence that curtailing proactive policing can reduce major crime: https://www.nature.com/articles/s41562-017-0211-5

Is Racial Profiling a Legitimate Strategy in the Fight against Violent Crime?: https://link.springer.com/epdf/10.1007/s11406-018-9945-1?author_access_token=nDM1xCesybebx7yUX2BxZ_e4RwlQNchNByi7wbcMAY6py69jTlOiEGDIgqW0Vv2HrAor6wlMLH695I2ykTiKUxf1RBnu1u_6gjXU-6vgh2gIy6CX2npHD9GR350T20x_TbCcq4MmJUPrxAqsJSe1QA%3D%3D
- Neven Sesardić

Are U.S. Cities Underpoliced?: http://marginalrevolution.com/marginalrevolution/2017/08/u-s-cities-underpoliced.html
Chalfin and McCrary acknowledge the endogeneity problem but they suggest that a more important reason why ordinary regression gives you poor results is that the number of police is poorly measured. Suppose the number of police jumps up and down in the data even when the true number stays constant. Fake variation obviously can’t influence real crime so when your regression “sees” a lot of (fake) variation in police which is not associated with variation in crime it’s naturally going to conclude that the effect of police on crime is small, i.e. attenuation bias.

By comparing two different measures of the number of police, Chalfin and McCrary show that a surprising amount of the ups and downs in the number of police is measurement error. Using their two measures, however, Chalfin and McCrary produce a third measure which is better than either alone. Using this cleaned-up estimate, they find that ordinary regression (with controls) gives you estimates of the effect of police on crime which are plausible and similar to those found using other techniques like natural experiments. Chalfin and McCrary’s estimates, however, are more precise since they use much more of the variation in the data.

Using these new estimates of the effect of police and crime along with estimates of the social cost of crime they conclude (as I have argued before) that U.S. cities are substantially under-policed.

Crime Imprisons and Kills: http://marginalrevolution.com/marginalrevolution/2018/01/crime-imprisons-kills.html
…The everyday lived experience of urban poverty has also been transformed. Analyzing rates of violent victimization over time, I found that the poorest Americans today are victimized at about the same rate as the richest Americans were at the start of the 1990s. That means that a poor, unemployed city resident walking the streets of an average city today has about the same chance of being robbed, beaten up, stabbed or shot as a well-off urbanite in 1993. Living in poverty used to mean living with the constant threat of violence. In most of the country, that is no longer true.

http://marginalrevolution.com/marginalrevolution/2015/09/what-was-gary-beckers-biggest-mistake.html
http://www.sentencingproject.org/wp-content/uploads/2016/01/Deterrence-in-Criminal-Justice.pdf
Do parole abolition and Truth-in-Sentencing deter violent crimes in Virginia?: http://link.springer.com.sci-hub.tw/article/10.1007/s00181-017-1332-4

Death penalty: https://offsettingbehaviour.blogspot.com/2011/09/death-penalty.html
And so I revise: the death penalty is wrong, and it also likely has little measurable deterrent effect. There may still be a deterrent effect; we just can't show one given available data.

The effects of DNA databases on the deterrence and detection of offenders: http://jenniferdoleac.com/wp-content/uploads/2015/03/DNA_Denmark.pdf
We exploit a large expansion of Denmark’s DNA database in 2005 to measure the effect of DNA registration on criminal behavior. Using a regression discontinuity strategy, we find that DNA registration reduces recidivism by 43%. Using rich data on the timing of subsequent charges to separate the deterrence and detection effects of DNA databases, we also find that DNA registration increases the probability that repeat offenders get caught, by 4%. We estimate an elasticity of criminal behavior with respect to the probability of detection to be -1.7. We also find suggestive evidence that DNA profiling changes non-criminal behavior: offenders added to the DNA database are more likely to get married, remain in a stable relationship, and live with their children.

Short- and long-term effects of imprisonment on future felony convictions and prison admissions: http://www.pnas.org/content/early/2017/09/26/1701544114.short
https://twitter.com/bswud/status/917354893907779585
Prison isn't criminogenic—offenders have higher rates of re-incarceration because of technical parole violations
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january 2017 by nhaliday
Mandelbrot (and Hudson’s) The (mis)Behaviour of Markets: A Fractal View of Risk, Ruin, and Reward | EVOLVING ECONOMICS
If you have read Nassim Taleb’s The Black Swan you will have come across some of Benoit Mandelbrot’s ideas. However, Mandelbrot and Hudson’s The (mis)Behaviour of Markets: A Fractal View of Risk, Ruin, and Reward offers a much clearer critique of the underpinnings of modern financial theory (there are many parts of The Black Swan where I’m still not sure I understand what Taleb is saying). Mandelbrot describes and pulls apart the contributions of Markowitz, Sharpe, Black, Scholes and friends in a way likely understandable to the intelligent lay reader. I expect that might flow from science journalist Richard Hudson’s involvement in writing the book.

- interesting parable about lakes and markets (but power laws aren't memoryless...?)
- yeah I think that's completely wrong actually. the important property of power laws is the lack of finite higher-order moments.

based off http://www.iima.ac.in/~jrvarma/blog/index.cgi/2008/12/21/ I think he really did mean a power law (x = 100/sqrt(r) => pdf is p(x) ~ |dr/dx| = 2e4/x^3)

edit: ah I get it now, for X ~ p(x) = 2/x^3 on [1,inf), we have E[X|X > k] = 2k, so not memoryless, but rather subject to a "slippery slope"
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november 2016 by nhaliday
Wiring the Brain: The dark arts of statistical genomics
GCTA+GWAS

This is where GCTA analyses come in. The idea here is to estimate the total contribution of common risk variants in the population to determining who develops a disease, without necessarily having to identify them all individually first. The basic premise of GCTA analyses is to not worry about picking up the signatures of individual SNPs, but instead to use all the SNPs analysed to simply measure relatedness among people in your study population. Then you can compare that index of (distant) relatedness to an index of phenotypic similarity. For a trait like height, that will be a correlation between two continuous measures. For diseases, however, the phenotypic measure is categorical – you either have been diagnosed with it or you haven’t.
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october 2016 by nhaliday
Can It Be Wrong To Crystallize Patterns? | Slate Star Codex
So provisionally I’m not sure there’s such a thing as crystallizing a pattern and being wrong to do so. You can crystallize patterns in such a way that it ends out misleading people who were already at risk of being misled – like the “ley lines” and “international Jewry” examples – and in practice this is a HUGE HUGE problem. But it seems to me that if you’re good enough at sorting through connotations to handle it that crystallization is usually a good idea.
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october 2016 by nhaliday
Noise: dinosaurs, syphilis, and all that | West Hunter
Generally speaking, I thought the paleontologists were a waste of space: innumerate, ignorant about evolution, and simply not very smart.

None of them seemed to understand that a sharp, short unpleasant event is better at causing a mass extinction, since it doesn’t give flora and fauna time to adapt.

Most seemed to think that gradual change caused by slow geological and erosion forces was ‘natural’, while extraterrestrial impact was not. But if you look at the Moon, or Mars, or the Kirkwood gaps in the asteroids, or think about the KAM theorem, it is apparent that Newtonian dynamics implies that orbits will be perturbed, and that sometimes there will be catastrophic cosmic collisions. Newtonian dynamics is as ‘natural’ as it gets: paleontologists not studying it in school and not having much math hardly makes it ‘unnatural’.

One of the more interesting general errors was not understanding how to to deal with noise – incorrect observations. There’s a lot of noise in the paleontological record. Dinosaur bones can be eroded and redeposited well after their life times – well after the extinction of all dinosaurs. The fossil record is patchy: if a species is rare, it can easily look as if it went extinct well before it actually did. This means that the data we have is never going to agree with a perfectly correct hypothesis – because some of the data is always wrong. Particularly true if the hypothesis is specific and falsifiable. If your hypothesis is vague and imprecise – not even wrong – it isn’t nearly as susceptible to noise. As far as I can tell, a lot of paleontologists [ along with everyone in the social sciences] think of of unfalsifiability as a strength.

Done Quickly: https://westhunt.wordpress.com/2011/12/03/done-quickly/
I’ve never seen anyone talk about it much, but when you think about mass extinctions, you also have to think about rates of change

You can think of a species occupying a point in a many-dimensional space, where each dimension represents some parameter that influences survival and/or reproduction: temperature, insolation, nutrient concentrations, oxygen partial pressure, toxin levels, yada yada yada. That point lies within a zone of habitability – the set of environmental conditions that the species can survive. Mass extinction occurs when environmental changes are so large that many species are outside their comfort zone.

The key point is that, with gradual change, species adapt. In just a few generations, you can see significant heritable responses to a new environment. Frogs have evolved much greater tolerance of acidification in 40 years (about 15 generations). Some plants in California have evolved much greater tolerance of copper in just 70 years.

As this happens, the boundaries of the comfort zone move. Extinctions occur when the rate of environmental change is greater than the rate of adaptation, or when the amount of environmental change exceeds the limit of feasible adaptation. There are such limits: bar-headed geese fly over Mt. Everest, where the oxygen partial pressure is about a third of that at sea level, but I’m pretty sure that no bird could survive on the Moon.

...

Paleontologists prefer gradualist explanations for mass extinctions, but they must be wrong, for the most part.
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september 2016 by nhaliday
Why Information Grows – Paul Romer
thinking like a physicist:

The key element in thinking like a physicist is being willing to push simultaneously to extreme levels of abstraction and specificity. This sounds paradoxical until you see it in action. Then it seems obvious. Abstraction means that you strip away inessential detail. Specificity means that you take very seriously the things that remain.

Abstraction vs. Radical Specificity: https://paulromer.net/abstraction-vs-radical-specificity/
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september 2016 by nhaliday
Achilles and the Tortoise Talk About Floss – spottedtoad
Exactly- people already want their teeth to be clean. People already can afford floss if they want to get it. People already have been told their whole life, more-or-less, that they should floss. To a large degree, if they’re the kind of person who can follow through with flossing, they’re already doing it. So if you go and put up signs around your medical school telling people they can get paid for a study of flossing if they don’t already floss and then you randomly assign them to be told to floss or not, you’re not testing the effect of flossing, you’re testing the effect of being told one more time to floss if you’ve already proved that you don’t like to do it. Maybe it’s not even that good for you personally, but that doesn’t mean it’s not good for most people who are already flossing.
health  medicine  thinking  science  parable  counterfactual  🤖  spock  evidence-based  regularizer  ratty  map-territory  unaffiliated  marginal  wonkish  dental  intricacy 
august 2016 by nhaliday
Information Processing: Bounded cognition
Many people lack standard cognitive tools useful for understanding the world around them. Perhaps the most egregious case: probability and statistics, which are central to understanding health, economics, risk, crime, society, evolution, global warming, etc. Very few people have any facility for calculating risk, visualizing a distribution, understanding the difference between the average, the median, variance, etc.

Risk, Uncertainty, and Heuristics: http://infoproc.blogspot.com/2018/03/risk-uncertainty-and-heuristics.html
Risk = space of outcomes and probabilities are known. Uncertainty = probabilities not known, and even space of possibilities may not be known. Heuristic rules are contrasted with algorithms like maximization of expected utility.

How do smart people make smart decisions? | Gerd Gigerenzer

Helping Doctors and Patients Make Sense of Health Statistics: http://www.ema.europa.eu/docs/en_GB/document_library/Presentation/2014/12/WC500178514.pdf
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july 2016 by nhaliday

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