nhaliday + political-econ   205

Adam Smith, David Hume, Liberalism, and Esotericism - Call for Papers - Elsevier
https://twitter.com/davidmanheim/status/963071765995032576
https://archive.is/njT4P
A very good economics journal--famously an outlet for rigorous, outside the box thinking--is publishing a special issue on hidden meanings in the work of two of the world's greatest thinkers.

Another sign the new Straussian age is upon us: Bayesians update accordingly!
big-peeps  old-anglo  economics  hmm  roots  politics  ideology  political-econ  philosophy  straussian  history  early-modern  britain  anglo  speculation  questions  events  multi  twitter  social  commentary  discussion  backup  econotariat  garett-jones  spearhead 
february 2018 by nhaliday
Unaligned optimization processes as a general problem for society
TL;DR: There are lots of systems in society which seem to fit the pattern of “the incentives for this system are a pretty good approximation of what we actually want, so the system produces good results until it gets powerful, at which point it gets terrible results.”

...

Here are some more places where this idea could come into play:

- Marketing—humans try to buy things that will make our lives better, but our process for determining this is imperfect. A more powerful optimization process produces extremely good advertising to sell us things that aren’t actually going to make our lives better.
- Politics—we get extremely effective demagogues who pit us against our essential good values.
- Lobbying—as industries get bigger, the optimization process to choose great lobbyists for industries gets larger, but the process to make regulators robust doesn’t get correspondingly stronger. So regulatory capture gets worse and worse. Rent-seeking gets more and more significant.
- Online content—in a weaker internet, sites can’t be addictive except via being good content. In the modern internet, people can feel addicted to things that they wish they weren’t addicted to. We didn’t use to have the social expertise to make clickbait nearly as well as we do it today.
- News—Hyperpartisan news sources are much more worth it if distribution is cheaper and the market is bigger. News sources get an advantage from being truthful, but as society gets bigger, this advantage gets proportionally smaller.

...

For these reasons, I think it’s quite plausible that humans are fundamentally unable to have a “good” society with a population greater than some threshold, particularly if all these people have access to modern technology. Humans don’t have the rigidity to maintain social institutions in the face of that kind of optimization process. I think it is unlikely but possible (10%?) that this threshold population is smaller than the current population of the US, and that the US will crumble due to the decay of these institutions in the next fifty years if nothing totally crazy happens.
ratty  thinking  metabuch  reflection  metameta  big-yud  clever-rats  ai-control  ai  risk  scale  quality  ability-competence  network-structure  capitalism  randy-ayndy  civil-liberty  marketing  institutions  economics  political-econ  politics  polisci  advertising  rent-seeking  government  coordination  internet  attention  polarization  media  truth  unintended-consequences  alt-inst  efficiency  altruism  society  usa  decentralized  rhetoric  prediction  population  incentives  intervention  criminal-justice  property-rights  redistribution  taxes  externalities  science  monetary-fiscal  public-goodish  zero-positive-sum  markets  cost-benefit  regulation  regularizer  order-disorder  flux-stasis  shift  smoothness  phase-transition  power  definite-planning  optimism  pessimism  homo-hetero  interests  eden-heaven  telos-atelos  threat-modeling  alignment 
february 2018 by nhaliday
What explains the formation and decay of clusters of creativity? - Marginal REVOLUTION
Creativity is often highly concentrated in time and space, and across different domains. What explains the formation and decay of clusters of creativity? In this paper we match data on thousands of notable individuals born in Europe between the XIth and the XIXth century with historical data on city institutions and population. After documenting several stylized facts, we show that the formation of creative clusters is not preceded by increases in city size. Instead, the emergence of city institutions protecting economic and political freedoms facilitates the attraction and production of creative talent.

IOW, the opposite of what Dick Florida said.
econotariat  marginal-rev  links  commentary  study  economics  growth-econ  broad-econ  cliometrics  innovation  stylized-facts  contrarianism  urban-rural  europe  the-great-west-whale  history  medieval  political-econ  institutions  microfoundations  roots  policy  nascent-state  creative  civil-liberty  randy-ayndy  polisci  regulation  capitalism  markets  mokyr-allen-mccloskey  enlightenment-renaissance-restoration-reformation  reflection  track-record 
january 2018 by nhaliday
Comparative Litigation Rates
We suggest that the notoriety of the U.S. does not result from the way citizens and judges handle routine disputes, which (different as it may be in developing countries) is not very different from in other wealthy, democratic societies,. Instead, American notoriety results from the peculiarly dysfunctional way judges handle disputes in discrete legal areas such as class actions and punitive damages
pdf  study  law  institutions  usa  alien-character  stereotypes  leviathan  polisci  political-econ  comparison  britain  japan  asia  europe  gallic  canada  anglo  roots  intricacy  data  pro-rata 
december 2017 by nhaliday
What era are our intuitions about elites and business adapted to? – Gene Expression
Above natural states are open-access orders, which characterize societies that have market economies and competitive politics. Here access to the elite is open to anyone who can prove themselves worthy — it is not artificially restricted in order to preserve large rents for the incumbents. The pie can be made bigger with more people at the top, since you only get to the top in such societies by making and selling things that people want. Elite members compete against each other based on the quality and price of the goods and services they sell — it’s a mercantile elite — rather than based on who is better at violence than the others. If the elites are flabby, upstarts can readily form their own organizations — as opposed to not having the freedom to do so — that, if better, will dethrone the incumbents. Since violence is no longer part of elite competition, homicide rates are the lowest of all types of societies.

OK, now let’s take a look at just two innate views that most people have about how the business world works or what economic elites are like, and see how these are adaptations to natural states rather than to the very new open-access orders (which have only existed in Western Europe since about 1850 or so). One is the conviction, common even among many businessmen, that market share matters more than making profits — that being more popular trumps being more profitable. The other is most people’s mistrust of companies that dominate their entire industry, like Microsoft in computers.
gnxp  scitariat  reflection  farmers-and-foragers  sapiens  instinct  politics  coalitions  anthropology  cultural-dynamics  political-econ  polisci  leviathan  north-weingast-like  unintended-consequences  open-closed  biases  government  markets  market-power  rent-seeking  capitalism  democracy  roots  EEA  inequality  egalitarianism-hierarchy  business  cost-benefit  interests  elite  hari-seldon 
december 2017 by nhaliday
Land, history or modernization? Explaining ethnic fractionalization: Ethnic and Racial Studies: Vol 38, No 2
Ethnic fractionalization (EF) is frequently used as an explanatory tool in models of economic development, civil war and public goods provision. However, if EF is endogenous to political and economic change, its utility for further research diminishes. This turns out not to be the case. This paper provides the first comprehensive model of EF as a dependent variable.
study  polisci  sociology  political-econ  economics  broad-econ  diversity  putnam-like  race  concept  conceptual-vocab  definition  realness  eric-kaufmann  roots  database  dataset  robust  endogenous-exogenous  causation  anthropology  cultural-dynamics  tribalism  methodology  world  developing-world  🎩  things  metrics  intricacy  microfoundations 
december 2017 by nhaliday
ON THE ORIGIN OF STATES: STATIONARY BANDITS AND TAXATION IN EASTERN CONGO
As a foundation for this study, I organized the collection of village-level panel data on violent actors, managing teams of surveyors, village elders, and households in 380 war-torn areas of DRC. I introduce optimal taxation theory to the decision of violent actors to establish local monopolies of violence. The value of such decision hinges on their ability to tax the local population. A sharp rise in the global demand for coltan, a bulky commodity used in the electronics industry, leads violent actors to impose monopolies of violence and taxation in coltan sites, which persist even years after demand collapses. A similar rise in the demand for gold, easier to conceal and more difficult to tax, does not. However, the groups who nevertheless control gold sites are more likely to respond by undertaking investments in fiscal capacity, consistent with the difficulty to observe gold, and with well-documented trajectories of state formation in Europe (Ardant, 1975). The findings support the view that the expected revenue from taxation, determined in particular by tax base elasticity and costly investments in fiscal capacity, can explain the stages of state formation preceding the states as we recognize them today.
pdf  study  economics  growth-econ  broad-econ  political-econ  polisci  leviathan  north-weingast-like  unintended-consequences  institutions  microfoundations  econometrics  empirical  government  taxes  rent-seeking  supply-demand  incentives  property-rights  africa  developing-world  peace-violence  interests  longitudinal  natural-experiment  endogenous-exogenous  archaeology  trade  world  feudal  roots  ideas  cost-benefit  econ-productivity  traces 
november 2017 by nhaliday
Fortifications and Democracy in the Ancient Greek World by Josiah Ober, Barry Weingast :: SSRN
- Joshiah Ober, Barry Weingast

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

'Rulers Ruled by Women': An Economic Analysis of the Rise and Fall of Women's Rights in Ancient Sparta by Robert K. Fleck, F. Andrew Hanssen: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=788106
Throughout most of history, women as a class have possessed relatively few formal rights. The women of ancient Sparta were a striking exception. Although they could not vote, Spartan women reportedly owned 40 percent of Sparta's agricultural land and enjoyed other rights that were equally extraordinary. We offer a simple economic explanation for the Spartan anomaly. The defining moment for Sparta was its conquest of a neighboring land and people, which fundamentally changed the marginal products of Spartan men's and Spartan women's labor. To exploit the potential gains from a reallocation of labor - specifically, to provide the appropriate incentives and the proper human capital formation - men granted women property (and other) rights. Consistent with our explanation for the rise of women's rights, when Sparta lost the conquered land several centuries later, the rights for women disappeared. Two conclusions emerge that may help explain why women's rights have been so rare for most of history. First, in contrast to the rest of the world, the optimal (from the men's perspective) division of labor among Spartans involved women in work that was not easily monitored by men. Second, the rights held by Spartan women may have been part of an unstable equilibrium, which contained the seeds of its own destruction.
study  broad-econ  economics  polisci  political-econ  institutions  government  north-weingast-like  democracy  walls  correlation  polis  history  mediterranean  iron-age  the-classics  microfoundations  modernity  comparison  architecture  military  public-goodish  elite  civic  taxes  redistribution  canon  literature  big-peeps  conquest-empire  rent-seeking  defense  models  GT-101  incentives  urban  urban-rural  speculation  interdisciplinary  cliometrics  multi  civil-liberty  gender  gender-diff  equilibrium  cycles  branches  labor  interests  property-rights  unintended-consequences  explanation  explanans  analysis  econ-productivity  context  arrows  micro  natural-experiment 
november 2017 by nhaliday
Climate Risk, Cooperation, and the Co-Evolution of Culture and Institutions∗
We test this hypothesis for Europe combining high-resolution climate data for the period 1500-2000 with survey data at the sub-national level. We find that regions with higher inter-annual variability in precipitation and temperature display higher levels of trust. This effect is driven by variability in the growing season months, and by historical rather than recent variability. Regarding possible mechanisms, we show that regions with more variable climate were more closely connected to the Medieval trade network, indicating a higher propensity to engage in inter-community exchange. We also find that these regions were more likely to adopt participatory political institutions earlier on, and are characterized by a higher quality of local governments still today. Our results suggest that, by favoring the emergence of mutually-reinforcing norms and institutions, exposure to environmental risk had a long-lasting impact on human cooperation.
pdf  study  broad-econ  economics  cliometrics  path-dependence  growth-econ  political-econ  institutions  government  social-norms  culture  cultural-dynamics  correlation  history  early-modern  mostly-modern  values  poll  trust  n-factor  cooperate-defect  cohesion  democracy  environment  europe  the-great-west-whale  geography  trade  network-structure  general-survey  outcome-risk  uncertainty  branches  microfoundations  hari-seldon 
november 2017 by nhaliday
The political economy of fertility | SpringerLink
This paper studies the political economy of fertility. Specifically, I argue that fertility may be a strategic choice for ethnic groups engaged in redistributive conflict. I first present a simple conflict model where high fertility is optimal for each ethnic group if and only if the economy’s ethnic diversity is high, institutions are weak, or both. I then test the model in a cross-national dataset. Consistent with the theory, I find that economies where the product of ethnic diversity and a measure of institutional weakness is high have increased fertility rates. I conclude that fertility may depend on political factors.
study  sociology  speculation  stylized-facts  demographics  population  fertility  polisci  political-econ  institutions  nationalism-globalism  tribalism  us-them  self-interest  intervention  wonkish  pdf  piracy  microfoundations  phalanges  diversity  putnam-like  competition  israel  MENA  the-bones 
november 2017 by nhaliday
The Constitutional Economics of Autocratic Succession on JSTOR
Abstract. The paper extends and empirically tests Gordon Tullock’s public choice theory of the nature of autocracy. A simple model of the relationship between constitutional rules governing succession in autocratic regimes and the occurrence of coups against autocrats is sketched. The model is applied to a case study of coups against monarchs in Denmark in the period ca. 935–1849. A clear connection is found between the specific constitutional rules governing succession and the frequency of coups. Specifically, the introduction of automatic hereditary succession in an autocracy provides stability and limits the number of coups conducted by contenders.

Table 2. General constitutional rules of succession, Denmark ca. 935–1849

To see this the data may be divided into three categories of constitutional rules of succession: One of open succession (for the periods 935–1165 and 1326–40), one of appointed succession combined with election (for the periods 1165–1326 and 1340–1536), and one of more or less formalized hereditary succession (1536–1849). On the basis of this categorization the data have been summarized in Table 3.

validity of empirics is a little sketchy

https://twitter.com/GarettJones/status/922103073257824257
https://archive.is/NXbdQ
The graphic novel it is based on is insightful, illustrates Tullock's game-theoretic, asymmetric information views on autocracy.

Conclusions from Gorton Tullock's book Autocracy, p. 211-215.: https://astro.temple.edu/~bstavis/courses/tulluck.htm
study  polisci  political-econ  economics  cracker-econ  big-peeps  GT-101  info-econ  authoritarianism  antidemos  government  micro  leviathan  elite  power  institutions  garett-jones  multi  econotariat  twitter  social  commentary  backup  art  film  comics  fiction  competition  europe  nordic  empirical  evidence-based  incentives  legacy  peace-violence  order-disorder  🎩  organizing  info-dynamics  history  medieval  law  axioms  stylized-facts  early-modern  data  longitudinal  flux-stasis  shift  revolution  correlation  org:junk  org:edu  summary  military  war  top-n  hi-order-bits  feudal  democracy  sulla 
october 2017 by nhaliday
Frontier Culture: The Roots and Persistence of “Rugged Individualism” in the United States∗
In a classic 1893 essay, Frederick Jackson Turner argued that the American frontier promoted individualism. We revisit the Frontier Thesis and examine its relevance at the subnational level. Using Census data and GIS techniques, we track the frontier throughout the 1790–1890 period and construct a novel, county-level measure of historical frontier experience. We document the distinctive demographics of frontier locations during this period—disproportionately male, prime-age adult, foreign-born, and illiterate—as well as their higher levels of individualism, proxied by the share of infrequent names among children. Many decades after the closing of the frontier, counties with longer historical frontier experience exhibit more prevalent individualism and opposition to redistribution and regulation. We take several steps towards a causal interpretation, including an instrumental variables approach that exploits variation in the speed of westward expansion induced by prior national immigration in- flows. Using linked historical Census data, we identify mechanisms giving rise to a persistent frontier culture. Greater individualism on the frontier was not driven solely by selective migration, suggesting that frontier conditions may have shaped behavior and values. We provide evidence suggesting that rugged individualism may be rooted in its adaptive advantage on the frontier and the opportunities for upward mobility through effort.

https://twitter.com/whyvert/status/921900860224897024
https://archive.is/jTzSe

The Origins of Cultural Divergence: Evidence from a Developing Country.: http://economics.handels.gu.se/digitalAssets/1643/1643769_37.-hoang-anh-ho-ncde-2017-june.pdf
Cultural norms diverge substantially across societies, often even within the same country. In this paper, we test the voluntary settlement hypothesis, proposing that individualistic people tend to self-select into migrating out of reach from collectivist states towards the periphery and that such patterns of historical migration are reflected even in the contemporary distribution of norms. For more than one thousand years during the first millennium CE, northern Vietnam was under an exogenously imposed Chinese rule. From the eleventh to the eighteenth centuries, ancient Vietnam gradually expanded its territory through various waves of southward conquest. We demonstrate that areas being annexed earlier into ancient Vietnam are nowadays more (less) prone to collectivist (individualist) culture. We argue that the southward out-migration of individualist people was the main mechanism behind this finding. The result is consistent across various measures obtained from an extensive household survey and robust to various control variables as well as to different empirical specifications, including an instrumental variable estimation. A lab-in-the-field experiment also confirms the finding.
pdf  study  economics  broad-econ  cliometrics  path-dependence  evidence-based  empirical  stylized-facts  values  culture  cultural-dynamics  anthropology  usa  frontier  allodium  the-west  correlation  individualism-collectivism  measurement  politics  ideology  expression-survival  redistribution  regulation  political-econ  government  migration  history  early-modern  pre-ww2  things  phalanges  🎩  selection  polisci  roots  multi  twitter  social  commentary  scitariat  backup  gnon  growth-econ  medieval  china  asia  developing-world  shift  natural-experiment  endo-exo  endogenous-exogenous  hari-seldon 
october 2017 by nhaliday
Farm (revenue leasing) - Wikipedia
Tax farming was originally a Roman practice whereby the burden of tax collection was reassigned by the Roman State to private individuals or groups. In essence, these individuals or groups paid the taxes for a certain area and for a certain period of time and then attempted to cover their outlay by collecting money or saleable goods from the people within that area.[5] The system was set up by Gaius Gracchus in 123 BC primarily to increase the efficiency of tax collection within Rome itself but the system quickly spread to the Provinces.[6] Within the Roman Empire, these private individuals and groups which collected taxes in lieu of the bid (i.e. rent) they had paid to the state were known as publicani, of whom the best known is the disciple Matthew, a publicanus in the village of Capernaum in the province of Galilee. The system was widely abused, and reforms were enacted by Augustus and Diocletian.[7] Tax farming practices are believed to have contributed to the fall of the Western Roman Empire in Western Europe.[8]
concept  finance  ORFE  taxes  political-econ  institutions  government  leviathan  wiki  reference  history  iron-age  mediterranean  the-classics  gibbon  roots  britain  broad-econ  economics  rent-seeking 
october 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
Constraining the Samurai: Rebellion and Taxation in Early Modern Japan | International Studies Quarterly | Oxford Academic
We study the extent to which peasant-led rebellions and collective desertion (“flight”) lowered the subsequent tax rate imposed by samurai rulers. Using newly compiled data on different types of peasant-led political mobilization—from petitions to insurrections—we find an association between, on the one hand, large-scale rebellions and flight and, on the other, lower tax rates.
study  economics  growth-econ  broad-econ  history  early-modern  japan  asia  sinosphere  institutions  government  political-econ  redistribution  taxes  incentives  cliometrics  peace-violence  natural-experiment  migration  revolution  correlation  elite  exit-voice 
september 2017 by nhaliday
Individualistic values, institutional trust, and interventionist attitudes | Journal of Institutional Economics | Cambridge Core
A popular explanation for economic development is that ‘individualistic values’ provide a mind-set that is favorable to the creation of growth-promoting institutions. The present paper investigates the relationship between individualistic values and personal attitudes toward government intervention. We consider two key components of an individualistic culture to be particularly relevant for attitude formation: self-direction (‘social’ individualism) and self-determination (‘economic’ individualism). Results indicate that both are negatively associated with interventionist attitudes. Effects of self-direction are much weaker though, than self-determination. Moreover, the effects of self-direction are mitigated through higher trust in the state and lower confidence in companies, while that is not the case for self-determination values. We conclude that especially economic individualism supports attitudes conducive to the formation of formal market-friendly institutions.
study  polisci  sociology  political-econ  microfoundations  anthropology  cultural-dynamics  culture  individualism-collectivism  n-factor  values  things  phalanges  pdf  piracy  correlation  capitalism  markets  egalitarianism-hierarchy  civil-liberty  anglosphere  optimate  trust  institutions  government  business  expression-survival  farmers-and-foragers  branches  frontier 
september 2017 by nhaliday
Autocratic Rule and Social Capital: Evidence from Imperial China by Melanie Meng Xue, Mark Koyama :: SSRN
This paper studies how autocratic rule affects social capital. Between 1660-1788, individuals in imperial China were persecuted if they were suspected of holding subversive attitudes towards the state. A difference-in-differences approach suggests that these persecutions led to a decline of 38% in social capital, as measured by the number of charitable organizations, in each subsequent decade. Investigating the long-run effect of autocratic rule, we show that persecutions are associated with lower levels of trust, political engagement, and the under provision of local public goods. These results indicate a possible vicious cycle in which autocratic rule becomes self-reinforcing through a permanent decline in social capital.
study  economics  broad-econ  econotariat  history  early-modern  growth-econ  authoritarianism  antidemos  china  asia  sinosphere  orient  n-factor  social-capital  individualism-collectivism  charity  cliometrics  trust  cohesion  political-econ  polisci  public-goodish  correlation  intervention  unintended-consequences  iteration-recursion  cycles  effect-size  path-dependence  🎩  leviathan  endogenous-exogenous  control  branches  pseudoE  slippery-slope  counter-revolution  nascent-state  microfoundations  explanans  the-great-west-whale  occident  madisonian  hari-seldon  law  egalitarianism-hierarchy  local-global  decentralized  the-watchers  noblesse-oblige  benevolence 
september 2017 by nhaliday
Can Europe Run Greece? Lessons from U.S. Fiscal Receiverships in Latin America, 1904-31 by Noel Maurer, Leticia Arroyo Abad :: SSRN
In 2012 and again in 2015, the German government proposed sending German administrators to manage Greece’s tax and privatization authorities. The idea was that shared governance would reduce corruption and root out inefficient practices. (In 2017 the Boston Globe proposed a similar arrangement for Haiti.) We test a version of shared governance using eight U.S. interventions between 1904 and 1931, under which American officials took over management of Latin American fiscal institutions. We develop a stylized model in which better monitoring by incorruptible managers does not lead to higher government revenues. Using a new panel of data on fiscal revenues and the volume and terms of trade, we find that revenue fell under receiverships. Our results hold under instrumental variables estimation and with counterfactual specifications using synthetic controls.
study  economics  broad-econ  political-econ  growth-econ  polisci  government  monetary-fiscal  money  europe  the-great-west-whale  germanic  mediterranean  usa  latin-america  conquest-empire  corruption  integrity  n-factor  management  history  mostly-modern  pre-ww2  models  analogy  track-record  endo-exo  counterfactual  cliometrics  micro  endogenous-exogenous 
september 2017 by nhaliday
Does Communist Party Membership Pay? Estimating the Economic Returns to Party Membership in the Labor Market in China
This study estimates the economic returns to Chinese Communist Party membership using complementary approaches to address the endogeneity of party membership status: propensity score matching and instrumental variable. Although the magnitudes of these estimates vary across estimators, all the estimates show positive economic returns to party membership.
pdf  study  economics  broad-econ  labor  microfoundations  political-econ  polisci  sociology  compensation  correlation  endo-exo  econometrics  government  institutions  corruption  china  asia  sinosphere  communism  authoritarianism  antidemos  social-capital  human-capital  intervention  supply-demand  micro  endogenous-exogenous  leviathan 
september 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
Culture, Ethnicity, and Diversity - American Economic Association
We investigate the empirical relationship between ethnicity and culture, defined as a vector of traits reflecting norms, values, and attitudes. Using survey data for 76 countries, we find that ethnic identity is a significant predictor of cultural values, yet that within-group variation in culture trumps between-group variation. Thus, in contrast to a commonly held view, ethnic and cultural diversity are unrelated. Although only a small portion of a country’s overall cultural heterogeneity occurs between groups, we find that various political economy outcomes (such as civil conflict and public goods provision) worsen when there is greater overlap between ethnicity and culture. (JEL D74, H41, J15, O15, O17, Z13)

definition of chi-squared index, etc., under:
II. Measuring Heterogeneity

Table 5—Incidence of Civil Conflict and Diversity
Table 6—Public Goods Provision and Diversity

https://twitter.com/GarettJones/status/924002043576115202
https://archive.is/oqMnC
https://archive.is/sBqqo
https://archive.is/1AcXn
χ2 diversity: raising the risk of civil war. Desmet, Ortuño-Ortín, Wacziarg, in the American Economic Review (1/N)

What predicts higher χ2 diversity? The authors tell us that, too. Here are all of the variables that have a correlation > 0.4: (7/N)

one of them is UK legal origin...

online appendix (with maps, Figures B1-3): http://www.anderson.ucla.edu/faculty_pages/romain.wacziarg/downloads/2017_culture_appendix.pdf
study  economics  growth-econ  broad-econ  world  developing-world  race  diversity  putnam-like  culture  cultural-dynamics  entropy-like  metrics  within-group  anthropology  microfoundations  political-econ  🎩  🌞  pdf  piracy  public-goodish  general-survey  cohesion  ethnocentrism  tribalism  behavioral-econ  sociology  cooperate-defect  homo-hetero  revolution  war  stylized-facts  econometrics  group-level  variance-components  multi  twitter  social  commentary  spearhead  econotariat  garett-jones  backup  summary  maps  data  visualization  correlation  values  poll  composition-decomposition  concept  conceptual-vocab  definition  intricacy  nonlinearity  anglosphere  regression  law  roots  within-without 
september 2017 by nhaliday
Ideas were not enough | Aeon
- Mark Koyama
some funny art here: https://en.wikipedia.org/wiki/Catholic_League_(French)
The Difficulty of Ruling over a Diverse Nation (1578): https://publicdomainreview.org/collections/the-difficulty-of-ruling-over-a-diverse-nation-1578/
16th-century Dutch engraving depicting a fantastical animal with the heads of various other animals sprouting from its body: an allegory for the difficulty of ruling over a diverse nation. In the background, watching on, can be seen a small mob or leaders, both secular and religious. This work by Antwerp-based artist Pieter van der Borcht the Elder, with its image of a confused and troubled body politic, is perhaps just as relevant now as it was then.
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september 2017 by nhaliday
The Long-Run Weight of Communism or the Weight of LongRun History?
This study provides evidence that culture understood as values and beliefs moves very slowly. Despite massive institutional change, values and beliefs in transition countries have not changed much over the last 20 years. Evidence suggests that culture is affected by the long run historical past, in particular the participation in empires for over 100 years. Current institutional evolutions in transition countries might be more affected by their long run past than by the communist experience of the twentieth century
pdf  study  economics  growth-econ  broad-econ  cliometrics  path-dependence  wealth-of-nations  divergence  history  mostly-modern  communism  authoritarianism  political-econ  institutions  eastern-europe  russia  long-short-run  culture  cultural-dynamics  🎩  values  general-survey  nationalism-globalism  competition  individualism-collectivism  gender  labor  democracy  expert  antidemos  capitalism  microfoundations  expert-experience  roots  top-n  branches  intel  china  asia  sinosphere  orient  technocracy  europe  germanic  agriculture  heavy-industry  pre-ww2  urban-rural  EU  trust  conquest-empire  empirical  markets  usa  migration  tribalism  us-them  convergence  enlightenment-renaissance-restoration-reformation  confucian  comparison  flux-stasis  hari-seldon 
august 2017 by nhaliday
The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade
Adjustment in local labor markets is remarkably slow, with wages and labor-force participation rates remaining depressed and unemployment rates remaining elevated for at least a full decade after the China trade shock commences. Exposed workers experience greater job churning and reduced lifetime income. At the national level, employment has fallen in the US industries more exposed to import competition, as expected, but offsetting employment gains in other industries have yet to materialize.

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

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

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

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

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

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

The China Shock was Matched by a China Boom: http://marginalrevolution.com/marginalrevolution/2018/01/china-shock-matched-china-boom.html
Our results fit the textbook story that job opportunities in exports make up for jobs lost in import-competing industries, or nearly so. Once we consider the export side, the negative employment effect of trade is much smaller than is implied in the previous literature. Although our analysis finds net job losses in the manufacturing sector for the US, there are remarkable job gains in services, suggesting that international trade has an impact on the labour market according to comparative advantage. The US has comparative advantages in services, so that overall trade led to higher employment through the increased demand for service jobs.
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august 2017 by nhaliday
From Soviets to Oligarchs: Inequality and Property in Russia 1905-2016
We find that official survey-based measures vastly under-estimate the rise of inequality since 1990. According to our benchmark estimates, top income shares are now similar to (or higher than) the levels observed in the United States. We also find that inequality has increased substantially more in Russia than in China and other ex-communist countries in Eastern Europe. We relate this finding to the specific transition strategy followed in Russia. According to our benchmark estimates, the wealth held offshore by rich Russians is about three times larger than official net foreign reserves, and is comparable in magnitude to total household financial assets held in Russia.

Figure 1a, 8abc, 9b

The Role of Oligarchs in Russian Capitalism: https://www.aeaweb.org/articles?id=10.1257/0895330053147994
2005

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

Russia's Billionaires: https://www.aeaweb.org/articles?id=10.1257/aer.p20161068
2016

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

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

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

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

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

https://themoscowtimes.com/articles/centrifugal-forces-why-russian-oligarchs-remain-loyal-to-the-putin-government-op-ed-59760
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august 2017 by nhaliday
Inherited Trust and Growth - American Economic Association
This paper develops a new method to uncover the causal effect of trust on economic growth by focusing on the inherited component of trust and its time variation. We show that inherited trust of descendants of US immigrants is significantly influenced by the country of origin and the timing of arrival of their forebears. We thus use the inherited trust of descendants of US immigrants as a time-varying measure of inherited trust in their country of origin. This strategy allows to identify the sizeable causal impact of inherited trust on worldwide growth during the twentieth century by controlling for country fixed effects. (JEL N11, N12, N31, N32, O47, Z13)

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

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

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

The autocratic roots of social distrust: http://sci-hub.tw/https://www.sciencedirect.com/science/article/pii/S0147596717300951
This paper identifies a new source of social distrust: an individual’s autocratic
origin.
 Individuals whose ancestors migrated from countries with higher autocracy
levels are less likely to trust others and to vote in presidential elections in the
U.S.
 The impact of autocratic culture on trust lasts for at least three generations
whereas the impact on voting disappears after one generation.
 The results are not driven by selection into migration or other factors such as the
GDP, education, or the strength of family ties in home countries in the U.S.
 Autocratic culture also has similar impacts on trust and voting across Europe.
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
The Rise and Fall of Cognitive Control - Behavioral Scientist
The results highlight the downsides of controlled processing. Within a population, controlled processing may—rather than ensuring undeterred progress—usher in short-sighted, irrational, and detrimental behavior, ultimately leading to population collapse. This is because the innovations produced by controlled processing benefit everyone, even those who do not act with control. Thus, by making non-controlled agents better off, these innovations erode the initial advantage of controlled behavior. This results in the demise of control and the rise of lack-of-control. In turn, this eventually leads to a return to poor decision making and the breakdown of the welfare-enhancing innovations, possibly accelerated and exacerbated by the presence of the enabling technologies themselves. Our models therefore help to explain societal cycles whereby periods of rationality and forethought are followed by plunges back into irrationality and short-sightedness.

https://static1.squarespace.com/static/51ed234ae4b0867e2385d879/t/595fac998419c208a6d99796/1499442499093/Cyclical-Population-Dynamics.pdf
Psychologists, neuroscientists, and economists often conceptualize decisions as arising from processes that lie along a continuum from automatic (i.e., “hardwired” or overlearned, but relatively inflexible) to controlled (less efficient and effortful, but more flexible). Control is central to human cognition, and plays a key role in our ability to modify the world to suit our needs. Given its advantages, reliance on controlled processing may seem predestined to increase within the population over time. Here, we examine whether this is so by introducing an evolutionary game theoretic model of agents that vary in their use of automatic versus controlled processes, and in which cognitive processing modifies the environment in which the agents interact. We find that, under a wide range of parameters and model assumptions, cycles emerge in which the prevalence of each type of processing in the population oscillates between 2 extremes. Rather than inexorably increasing, the emergence of control often creates conditions that lead to its own demise by allowing automaticity to also flourish, thereby undermining the progress made by the initial emergence of controlled processing. We speculate that this observation may have relevance for understanding similar cycles across human history, and may lend insight into some of the circumstances and challenges currently faced by our species.
econotariat  economics  political-econ  policy  decision-making  behavioral-econ  psychology  cog-psych  cycles  oscillation  unintended-consequences  anthropology  broad-econ  cultural-dynamics  tradeoffs  cost-benefit  rot  dysgenics  study  summary  multi  EGT  dynamical  volo-avolo  self-control  discipline  the-monster  pdf  error  rationality  info-dynamics  bounded-cognition  hive-mind  iq  intelligence  order-disorder  risk  microfoundations  science-anxiety  big-picture  hari-seldon  cybernetics 
july 2017 by nhaliday
Corrupting cooperation and how anti-corruption strategies may backfire | Nature Human Behaviour
https://images.nature.com/original/nature-assets/nathumbehav/2017/s41562-017-0138/extref/s41562-017-0138-s1.pdf
Exposure to Norms: https://images.nature.com/original/nature-assets/nathumbehav/2017/s41562-017-0138/extref/s41562-017-0138-s1.pdf#page=114
Here we test how exposure to corruption norms affect behavior in our game. We do so by using our exposure score (a mean of the corruption perceptions of the countries the participant has lived in) and the heritage corruption score (a mean of the corruption perceptions of the countries the participant has an ethnic heritage). Since there is no incentive to offer bribes or contribute, except when compelled to do so by punishment, we predict that exposure to norms should primarily affect Leader decisions. Nonetheless, internalized norms may also affect the behavior of players in contributing and bribing.

...

The correlation between the direct exposure and heritage measures of corruption is r = 0.67, p < .001.

...

Then we see that direct exposure to corruption norms results in increased corrupt behavior—i.e. in our Canadian sample, those who have lived in corrupt countries from which they do not derive their heritage behave in more corrupt ways.

hard to interpret

https://twitter.com/Evolving_Moloch/status/884477414100697092
http://psych.ubc.ca/when-less-is-best/

I don't think the solution is to just do nothing. Should look to history for ideas; process of "getting to Denmark" took centuries in NW Euro. Try to replicate and don't expect fast results.

Trust and Bribery: The Role of the Quid Pro Quo and the Link with Crime: http://www.nber.org/papers/w10510
I study data on bribes actually paid by individuals to public officials, viewing the results through a theoretical lens that considers the implications of trust networks. A bond of trust may permit an implicit quid pro quo to substitute for a bribe, which reduces corruption. Appropriate networks are more easily established in small towns, by long-term residents of areas with many other long-term residents, and by individuals in regions with many residents their own age. I confirm that the prevalence of bribery is lower under these circumstances, using the International Crime Victim Surveys. I also find that older people, who have had time to develop a network, bribe less. These results highlight the uphill nature of the battle against corruption faced by policy-makers in rapidly urbanizing countries with high fertility. I show that victims of (other) crimes bribe all types of public officials more than non-victims, and argue that both their victimization and bribery stem from a distrustful environment.

Kinship, Fractionalization and Corruption: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2847222
The theory of kin selection provides a straightforward justification for norms of nepotism and favoritism among relatives; more subtly, it also implies that the returns to such norms may be influenced by mating practices. Specifically, in societies with high levels of sub-ethnic fractionalization, where endogamous (and consanguineous) mating within kin-group, clan and tribe increases the local relatedness of individuals, the relative returns to norms of nepotism and favoritism are high. In societies with exogamous marriage practices, the relative returns to norms of impartial cooperation with non-relatives and strangers are increased. Using cross-country and within-country regression analyses and a cross-country lab experiment, we provide evidence for this account.

Ethnic favouritism: Not just an African phenomenon: http://voxeu.org/article/ethnic-favouritism-not-just-african-phenomenon
Ethnic favouritism is a global phenomenon
We find robust evidence for ethnic favouritism – ethnographic regions that are the current political leader’s ethnic homeland enjoy 7%-10% more intense night-time light, corresponding to 2%-3% higher regional GDP. Furthermore, we show that ethnic favouritism extends to ethnic groups that are linguistically close to the political leader.

Most significantly, these effects are as strong outside of Africa as they are within, challenging the preconception that ethnic favouritism is mainly or even entirely a sub-Saharan African phenomenon. For example, Bolivian presidents tended to favour areas populated by European descendants and Criollos, largely at the expense of the indigenous population. After the election of Evo Morales, a member of the indigenous Ayamara ethnic group, luminosity in indigenous areas grew substantially. Notably, critics suggest Morales gave special attention to the interests and values of the Ayamara at the expense of other indigenous peoples (e.g. Albro 2010, Postero 2010).

Democratisation is not a panacea
Our results further suggest that, while democratic institutions have a weak tendency to reduce ethnic favouritism, their effect is limited. In particular, a change from autocratic regimes to weak democracies does not seem to reduce ethnic favouritism (and may even increase it).

This result could in part be explained by political leaders’ motivations for engaging in ethnic favouritism. We find that the practice intensifies around election years in which the political leader's office is contested, suggesting that leaders may target policies towards their ethnic homelands to improve their re-election prospects, and not solely out of co-ethnic altruism. To the extent that political leaders engage in ethnic favouritism for electoral purposes, democratisation is not likely to be effective in curbing the practice.

Facebook’s war on free will: https://www.theguardian.com/technology/2017/sep/19/facebooks-war-on-free-will
Though Facebook will occasionally talk about the transparency of governments and corporations, what it really wants to advance is the transparency of individuals – or what it has called, at various moments, “radical transparency” or “ultimate transparency”. The theory holds that the sunshine of sharing our intimate details will disinfect the moral mess of our lives. With the looming threat that our embarrassing information will be broadcast, we’ll behave better. And perhaps the ubiquity of incriminating photos and damning revelations will prod us to become more tolerant of one another’s sins. “The days of you having a different image for your work friends or co-workers and for the other people you know are probably coming to an end pretty quickly,” Zuckerberg has said. “Having two identities for yourself is an example of a lack of integrity.”

The point is that Facebook has a strong, paternalistic view on what’s best for you, and it’s trying to transport you there. “To get people to this point where there’s more openness – that’s a big challenge. But I think we’ll do it,” Zuckerberg has said. He has reason to believe that he will achieve that goal. With its size, Facebook has amassed outsized powers. “In a lot of ways Facebook is more like a government than a traditional company,” Zuckerberg has said. “We have this large community of people, and more than other technology companies we’re really setting policies.”

Facebook and the Destruction of Private Life: http://www.socialmatter.net/2014/12/30/facebook-and-the-destruction-of-private-life/
- HENRY DAMPIER

The key value of privacy, which tends to be lost amid all the technological babble about the concept, is that it makes social cooperation more feasible among people who disagree, share different tastes, or fundamental points of view.

...

This is especially an issue with democracy. The reason why the United States has anonymous voting laws is because without them, people are persecuted for their party affiliations by people with rival party loyalties. This being forgotten, the age of Facebook and similar technologies has opened up ordinary people to this sort of ordinary political persecution. Moderating influences like that of the respect for privacy put a brake on some of the more rapacious, violent aspects of party politics.

...

The impulse for this comes less from the availability of the technology, and more because of the preexisting social trends. When there is a family life, there is communication and closeness within the family.

With more people living without a family life, they go to the public square to get their needs for social validation met. This doesn’t work so well, because strangers have no skin in the life of the atomized individual that only exists as an image on their screens.
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july 2017 by nhaliday
A Model of Protests, Revolution, and Information
A population considering a revolt must participate in sufficient numbers to succeed. We study how their ability to coordinate is affected by their information. The effects of information are non-monotone: the population may coordinate on a revolt if there is very little information or if they know a lot about each other’s preferences for change, but having each agent know about the the willingness of a few others to revolt can actually make non-participation by all the unique equilibrium. We also show that holding mass protests before a revolution can be an essential step in mobilizing a population. Protests provide costly signals of how many agents are willing to participate, while easier forms of communication (e.g., via social media) may fail to signal willingness to actively participate. Thus, although social media can enhance coordination, it may still be necessary to hold a protest before a revolution in order to measure the size of the population willing to revolt. We also examine how having competing groups involved in a revolution can change its feasibility, as well as other extensions, such as what the minimal redistribution on the part of the government is in order to avoid a revolution, and the role of propaganda.
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july 2017 by nhaliday
The Determinants of Media Bias in China
Based on content analysis, we construct a measure of media bias, which has high predicting power of a newspaper being a strictly controlled party organ and of a newspaperís advertising revenues. We Önd that more-biased newspapers 1) cover more news on political leaders in an o¢ cial way, while more heavily suppress reports that are detrimental to the ideology of the ruling party; and 2) cover more news that is related to the accountability of local government o¢ cials, such as corruption, disasters, and accidents, while reporting less on sports, entertainment, and crimes. These results indicate that the Chinese government not only uses the media to maintain regime stability and enhance top-down policy implementation, but also uses the media as a public signaling device to monitor government o¢ cials and mitigate the distortion of information from bottom up.
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july 2017 by nhaliday
Kinship Systems, Cooperation and the Evolution of Culture
In the data, societies with loose ancestral kinship ties cooperate and trust broadly, which is apparently sustained through a belief in moralizing gods, universally applicable moral principles, feelings of guilt, and large-scale institutions. Societies with a historically tightly knit kinship structure, on the other hand, exhibit strong in-group favoritism: they cheat on and are distrusting of out-group members, but readily support in-group members in need. This cooperation scheme is enforced by moral values of in-group loyalty, conformity to tight social norms, emotions of shame, and strong local institutions.

Henrich, Joseph, The Secret of Our Success: How Culture is Driving Human Evolution,
Domesticating Our Species, and Making Us Smarter, Princeton University Press, 2015.
—, W.E.I.R.D People: How Westerners became Individualistic, Self-Obsessed, Guilt-Ridden,
Analytic, Patient, Principled and Prosperous, Princeton University Press, n.d.
—, Jean Ensminger, Richard McElreath, Abigail Barr, Clark Barrett, Alexander Bolyanatz, Juan Camilo Cardenas, Michael Gurven, Edwins Gwako, Natalie Hen- rich et al., “Markets, Religion, Community Size, and the Evolution of Fairness and Punishment,” Science, 2010, 327 (5972), 1480–1484.

...

—, —, Will M. Gervais, Aiyana K. Willard, Rita A. McNamara, Edward Slingerland, and Joseph Henrich, “The Cultural Evolution of Prosocial Religions,” Behavioral and Brain Sciences, 2016, 39, e1.

...

Purzycki, Benjamin Grant, Coren Apicella, Quentin D. Atkinson, Emma Cohen, Rita Anne McNamara, Aiyana K. Willard, Dimitris Xygalatas, Ara Norenzayan, and Joseph Henrich, “Moralistic Gods, Supernatural Punishment and the Expansion of Human Sociality,” Nature, 2016.

Table 1 summarizes
Figure 1 has map of kinship tightness
Figure 2 has cheating and in-group vs. out-group
Table 2 has regression
Figure 3 has univeralism and shame-guilt
Figure 4 has individualism-collectivism/conformity
Table 4 has radius of trust, Table 5 same for within-country variation (ethnic)
Tables 7 and 8 do universalism

Haidt moral foundations:
In line with the research hypothesis discussed in Section 3, the analysis employs two dependent variables, i.e., (i) the measure of in-group loyalty, and (ii) an index of the importance of communal values relative to the more universal (individualizing) ones. That is, the hypothesis is explicitly not about some societies being more or less moral than others, but merely about heterogeneity in the relative importance that people attach to structurally different types of values. To construct the index, I compute the first principal component of fairness / reciprocity, harm / care, in-group / loyalty, and respect /authority. The resulting score endogenously has the appealing property that – in line with the research hypothesis – it loads positively on the first two values and negatively on the latter two, with roughly equal weights, see Appendix F for details.²⁴I compute country-level scores by averaging responses by country of residence of respondents. Importantly, in Enke (2017) I document that – in a nationally representative sample of Americans – this same index of moral communalism is strongly correlated with individuals’ propensity to favor their local community over society as a whole in issues ranging from taxation and redistribution to donations and volunteering. Thus, there is evidence that the index of communal moral values captures economically meaningful behavioral heterogeneity.

The coevolution of kinship systems, cooperation, and culture: http://voxeu.org/article/kinship-cooperation-and-culture
- Benjamin Enke

pretty short

good linguistics reference cited in this paper:
On the biological and cultural evolution of shame: Using internet search tools to weight values in many cultures: https://arxiv.org/abs/1401.1100v2
Here we explore the relative importance between shame and guilt by using Google Translate [>_>...] to produce translation for the words "shame", "guilt", "pain", "embarrassment" and "fear" to the 64 languages covered. We also explore the meanings of these concepts among the Yanomami, a horticulturist hunter-gatherer tribe in the Orinoquia. Results show that societies previously described as “guilt societies” have more words for guilt than for shame, but *the large majority*, including the societies previously described as “shame societies”, *have more words for shame than for guilt*. Results are consistent with evolutionary models of shame which predict a wide scatter in the relative importance between guilt and shame, suggesting that cultural evolution of shame has continued the work of biological evolution, and that neither provides a strong adaptive advantage to either shame or guilt [? did they not just say that most languages favor shame?].

...

The roots of the word "shame" are thought to derive from an older word meaning "to cover". The emotion of shame has clear physiological consequences. Its facial and corporal expression is a human universal, as was recognized already by Darwin (5). Looking away, reddening of the face, sinking the head, obstructing direct view, hiding the face and downing the eyelids, are the unequivocal expressions signaling shame. Shame might be an emotion specific to humans, as no clear description of it is known for animals.
...
Classical Greek philosophers, such as Aristotle, explicitly mention shame as a key element in building society.

Guilt is the emotion of being responsible for the commission of an offense, however, it seems to be distinct from shame. Guilt says “what I did was not good”, whereas shame says “I am no good"(2). For Benedict (1), shame is a violation of cultural or social values, while guilt feelings arise from violations of one's internal values.

...

Unobservable emotions such as guilt may be of value to the receiver but constitutes in economy “private information”. Thus, in economic and biological terms, adaptive pressures acting upon the evolution of shame differ from those acting on that of guilt.

Shame has evolutionary advantages to both individual and society, but the lack ofshame also has evolutionary advantages as it allows cheating and thus benefiting from public goods without paying the costs of its build up.

...

Dodds (7) coined the distinction between guilt and shame cultures and postulated that in Greek cultural history, shame as a social value was displaced, at least in part, by guilt in guiding moral behavior.
...
"[...]True guilt cultures rely on an internalized conviction of sin as the enforcer of good behavior, not, as shame cultures do, on external sanctions. Guilt cultures emphasize punishment and forgiveness as ways of restoring the moral order; shame cultures stress self-denial and humility as ways of restoring the social order”.

...

For example, Wikipedia is less error prone than Encyclopedia Britannica (12, 17); and Google Translate is as accurate as more traditional methods (35).

Table 1, Figure 1

...

This regression is close to a proportional line of two words for shame for each word for guilt.

...

For example, in the case of Chinese, no overlap between the five concepts is reported using Google Translate in Figure 1. Yet, linguistic-conceptual studies of guilt and shame revealed an important overlap between several of these concepts in Chinese (29).

...

Our results using Google Translate show no overlap between Guilt and Shame in any of the languages studied.
...
[lol:] Examples of the context when they feel “kili” are: a tiger appears in the forest; you kill somebody from another community; your daughter is going to die; everybody looks at your underwear; you are caught stealing; you soil your pants while among others; a doctor gives you an injection; you hit your wife and others find out; you are unfaithful to your husband and others find out; you are going to be hit with a machete.

...

Linguistic families do not aggregate according to the relationship of the number of synonyms for shame and guilt (Figure 3).

...

The ratios are 0.89 and 2.5 respectively, meaning a historical transition from guilt-culture in Latin to shame-culture in Italian, suggesting a historical development that is inverse to that suggested byDodds for ancient to classical Greek. [I hope their Latin corpus doesn't include stuff from Catholics...]

Joe Henrich presentation: https://www.youtube.com/watch?v=f-unD4ZzWB4

relevant video:
Johnny Cash - God's Gonna Cut You Down: https://www.youtube.com/watch?v=eJlN9jdQFSc

https://en.wikipedia.org/wiki/Guilt_society
https://en.wikipedia.org/wiki/Shame_society
https://en.wikipedia.org/wiki/Guilt-Shame-Fear_spectrum_of_cultures
this says Dems more guilt-driven but Peter Frost says opposite here (and matches my perception of the contemporary breakdown both including minorities and focusing only on whites): https://pinboard.in/u:nhaliday/b:9b75881f6861
http://honorshame.com/global-map-of-culture-types/

this is an amazing paper:
The Origins of WEIRD Psychology: https://psyarxiv.com/d6qhu/
Recent research not only confirms the existence of substantial psychological variation around the globe but also highlights the peculiarity of populations that are Western, Educated, Industrialized, Rich and Democratic (WEIRD). We propose that much of this variation arose as people psychologically adapted to differing kin-based institutions—the set of social norms governing descent, marriage, residence and related domains. We further propose that part of the variation in these institutions arose historically from the Catholic Church’s marriage and family policies, which contributed to the dissolution of Europe’s traditional kin-based institutions, leading eventually to the predominance of nuclear families and impersonal institutions. By combining data on 20 psychological outcomes with historical measures of both kinship and Church exposure, we find support for these ideas in a comprehensive array of analyses across countries, among European regions and between individuals with … [more]
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june 2017 by nhaliday
A HISTORY OF VIOLENCE: THE CULTURE OF HONOR AND HOMICIDE IN THE US SOUTH - Grosjean - 2014 - Journal of the European Economic Association - Wiley Online Library
I find that historical Scots-Irish presence is associated with higher contemporary homicide, particularly by white offenders, and that a culture of violence was transmitted to subsequent generations—but only in the South and, more generally, where historical institutional quality was low. The interpretation is that the Scots-Irish culture of honor prevailed and persisted as an adaptive behavior to weak institutions. As institutional quality converged between the South and North over the last 200 years, the influence of the culture of honor has been fading over time.

https://twitter.com/tcjfs/status/825394197482106880
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june 2017 by nhaliday
Economic Growth in Ancient Greece | pseudoerasmus
Maybe land-and-dung expansion does not really require a fancy institutional explanation. Territory expanded, land yields rose, and people have always traded their surpluses. Why invoke “inclusive institutions”, as Ober effectively does, for something so mundane ? Perhaps the seminal cultural accomplishments of classical Greece bias some of us to look for “special” causes of the expansion.

Note, this is not an argument that political economy or “institutions” play no role in the rise and decline of economies. But in this particular case, so little seems established about the descriptive statistics, let alone the “growth accounting”, of Greek economic expansion in 800-300 BCE that it’s premature to be speculating about its institutional causes.
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june 2017 by nhaliday
Seeing China through its economic history - Marginal REVOLUTION
From today’s media, one sometimes receives the impression that a Chinese growth rate below 4 or 6 percent could mean radical instability and a rapid fall of the government, but Chinese history does not show this pattern. That is hardly proof of how things will run in the future, but it should shift our expectations in the direction of greater Chinese political stability.
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june 2017 by nhaliday
On the economics of the Neolithic Revolution | A Fine Theorem
Matranga writes a simple Malthusian model. The benefit of being nomadic is that you can move to places with better food supply. The benefit of being sedentary is that you use storage technology to insure yourself against lean times, even if that insurance comes at the cost of lower food intake overall. Nomadism, then, is better than settling when there are lots of nearby areas with uncorrelated food availability shocks (since otherwise why bother to move?) or when the potential shocks you might face across the whole area you travel are not that severe (in which case why bother to store food?). If fertility depends on constant access to food, then for Malthusian reasons the settled populations who store food will grow until everyone is just at subsistence, whereas the nomadic populations will eat a surplus during times when food is abundant.

It turns out that global “seasonality” – or the difference across the year in terms of temperature and rainfall – was extraordinarily high right around the time agriculture first popped up in the Fertile Crescent. Matranga uses some standard climatic datasets to show that six of the seven independent inventions of agriculture appear to have happened soon after increases in seasonality in their respective regions. This is driven by an increase in seasonality and not just an increase in rainfall or heat: agriculture appears in the cold Andes and in the hot Mideast and in the moderate Chinese heartland. Further, adoption of settlement once your neighbors are farming is most common when you live on relatively flat ground, with little opportunity to change elevation to pursue food sources as seasonality increases. Biological evidence (using something called “Harris lines” on your bones) appears to support to idea that nomads were both better fed yet more subject to seasonal shocks than settled peoples.

FROM FORAGING TO FARMING:
EXPLAINING THE NEOLITHIC
REVOLUTION: http://sci-hub.tw/10.1111/j.0950-0804.2005.00259.x
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june 2017 by nhaliday
Biological Measures of the Standard of Living - American Economic Association
https://academic.oup.com/oep/article-abstract/66/2/349/2362600/How-have-Europeans-grown-so-tall
The evidence suggests that the most important proximate source of increasing height was the improving disease environment as reflected by the fall in infant mortality. Rising income and education and falling family size had more modest effects. Improvements in health care are hard to identify, and the effects of welfare state spending seem to have been small.

GROWING TALL BUT UNEQUAL: NEW FINDINGS AND NEW BACKGROUND EVIDENCE ON ANTHROPOMETRIC WELFARE IN 156 COUNTRIES, 18101989: https://pseudoerasmus.files.wordpress.com/2017/03/baten-blum-2012.pdf
This is the first initiative to collate the entire body of anthropometric evidence during the 19th and 20th centuries, on a global scale. By providing a comprehensive dataset on global height developments we are able to emphasise an alternative view of the history of human well-being and a basis for understanding characteristics of well-being in 156 countries, 1810-1989.

Bones of Contention: The Political Economy of Height Inequality: http://piketty.pse.ens.fr/files/BoixRosenbluth2014.pdf
- Carles Boix, et al.

Height in the Dark Ages: https://pseudoerasmus.com/2014/06/12/aside-angus-maddison/
study  economics  growth-econ  broad-econ  history  early-modern  mostly-modern  measurement  methodology  embodied  health  longevity  sapiens  death  wealth  pseudoE  🎩  multi  epidemiology  public-health  roots  europe  policy  wonkish  healthcare  redistribution  welfare-state  disease  parasites-microbiome  wealth-of-nations  education  top-n  data  world  pdf  political-econ  inequality  farmers-and-foragers  leviathan  archaeology  🌞  article  time-series  civilization  iron-age  mediterranean  medieval  gibbon  the-classics  demographics  gender  britain  evidence  traces 
june 2017 by nhaliday
Culture and the Historical Process
This article discusses the importance of accounting for cultural values and beliefs when studying the process of historical economic development. A notion of culture as heuristics or rules-of-thumb that aid in decision making is described. Because cultural traits evolve based upon relative fitness, historical shocks can have persistent impacts if they alter the costs and benefits of different traits. A number of empirical studies confirm that culture is an important mechanism that helps explain why historical shocks can have persistent impacts; these are reviewed here. As an example, I discuss the colonial origins hypothesis (Acemoglu, Johnson and Robinson, 2001), and show that our understanding of the transplantation of European legal and political institutions during the colonial period remains incomplete unless the values and beliefs brought by European settlers are taken into account. It is these cultural beliefs that formed the foundation of the initial institutions that in turn were key for long-term economic development.

...

The notion of culture that I employ is that of decision making heuristics or ‘rules-of-thumb that have evolved given our need to make decisions in complex and uncertain environments. Using theoretical models, Boyd and Richerson (1985, 2005) show that if information acquisition is either costly or imperfect, the use of heuristics or rules-of-thumb in decision-making can arise optimally. By relying on general beliefs, values or gut feelings about the “right” thing to do in different situations, individuals may not behave in a manner that is optimal in every instance, but they do save on the costs of obtaining the information necessary to always behave optimally. The benefit of these heuristics is that they are “fast-and-frugal”, a benefit which in many environments outweighs the costs of imprecision (Gigerenzer and Goldstein, 1996). Therefore, culture, as defined in this paper, refers to these decision-making heuristics, which typically manifest themselves as values, beliefs, or social norms.
study  economics  growth-econ  methodology  explanation  conceptual-vocab  concept  culture  cultural-dynamics  anthropology  broad-econ  path-dependence  roots  institutions  decision-making  heuristic  🎩  europe  age-of-discovery  expansionism  world  developing-world  wealth-of-nations  🌞  s:*  pseudoE  political-econ  north-weingast-like  social-norms  microfoundations  hari-seldon 
june 2017 by nhaliday
WHY DOESN’T THE US HAVE A EUROPEAN-STYLE WELFARE STATE?
ethnic fractionalization (does this extend to 1850-1920 migration?)

there is this:
The fact that the American working class was formed by waves of immigration also contributed to preventing the formation of a European style class consciousness. Ethnic divisions within the working class (for instance old Protestant immigrants on one side, new Catholic immigrants on the other) were as strongly felt as class-based cleavages.28 Even contemporary socialist leaders (including Engels) recognized the powerful effect of ethnic fragmentation within the union movement.
pdf  study  economics  growth-econ  political-econ  policy  redistribution  welfare-state  comparison  usa  europe  diversity  putnam-like  migration  🎩  race  vampire-squid  roots  broad-econ  rot  history  early-modern  pre-ww2  madisonian  domestication  class-warfare  public-goodish  microfoundations  capital  cohesion  alesina  tribalism 
june 2017 by nhaliday
Enclosure - Wikipedia
Enclosure (sometimes inclosure) was the legal process in England during the 18th century of enclosing a number of small landholdings to create one larger farm.[1] Once enclosed, use of the land became restricted to the owner, and it ceased to be common land for communal use. In England and Wales the term is also used for the process that ended the ancient system of arable farming in open fields. Under enclosure, such land is fenced (enclosed) and deeded or entitled to one or more owners. The process of enclosure began to be a widespread feature of the English agricultural landscape during the 16th century. By the 19th century, unenclosed commons had become largely restricted to rough pasture in mountainous areas and to relatively small parts of the lowlands.

Enclosure could be accomplished by buying the ground rights and all common rights to accomplish exclusive rights of use, which increased the value of the land. The other method was by passing laws causing or forcing enclosure, such as Parliamentary enclosure. The latter process of enclosure was sometimes accompanied by force, resistance, and bloodshed, and remains among the most controversial areas of agricultural and economic history in England. Marxist and neo-Marxist historians argue that rich landowners used their control of state processes to appropriate public land for their private benefit.[2] The process of enclosure created a landless working class that provided the labour required in the new industries developing in the north of England. For example: "In agriculture the years between 1760 and 1820 are the years of wholesale enclosure in which, in village after village, common rights are lost".[3] Thompson argues that "Enclosure (when all the sophistications are allowed for) was a plain enough case of class robbery."[4][5]

Community and Market in England:
Open Fields and Enclosures Revisited: https://www.nuffield.ox.ac.uk/users/allen/community.pdf
Commons Sense: Common Property Rights, Efficiency, and Institutional Change: http://faculty.econ.ucdavis.edu/faculty/gclark/210a/readings/commons1.pdf
Allen’s Enclosure and the Yeoman: the View from Tory Fundamentalism: http://www.deirdremccloskey.com/docs/pdf/Article_52.pdf
history  early-modern  institutions  law  leviathan  property-rights  agriculture  broad-econ  economics  growth-econ  capitalism  markets  entrepreneurialism  britain  anglosphere  wiki  reference  industrial-revolution  divergence  pre-ww2  multi  pdf  study  pseudoE  gregory-clark  cost-benefit  analysis  efficiency  contrarianism  mokyr-allen-mccloskey  🎩  frontier  modernity  political-econ  polanyi-marx 
june 2017 by nhaliday
The Behavioral Econ of Paperwork, Bryan Caplan | EconLog | Library of Economics and Liberty
If X is good, we can noticeably encourage it by modestly simplifying the paperwork. So yes, cut red tape for employment, construction, travel, and adoption. If X is bad, though, we can noticeably discourage it by modestly complicating the paperwork. Indeed, complexity is a viable substitute for explicit means-testing: If you lack the patience to fill out ten forms, you probably don't really need the money.
econotariat  org:econlib  cracker-econ  proposal  economics  behavioral-econ  policy  political-econ  regulation  intricacy  aversion 
june 2017 by nhaliday
The Consequences of Radical Reform: The French Revolution
The evidence does not provide any support for several other views, most notably, that evolved institutions are inherently superior to those 'designed'; that institutions must be 'appropriate' and cannot be 'transplanted'; and that the civil code and other French institutions have adverse economic effects.
study  economics  growth-econ  history  early-modern  cliometrics  europe  gallic  institutions  acemoglu  revolution  natural-experiment  endo-exo  war  egalitarianism-hierarchy  government  polisci  political-econ  broad-econ  wealth-of-nations  rent-seeking  elite  class  conquest-empire  open-closed  north-weingast-like  endogenous-exogenous 
may 2017 by nhaliday
An Economic Analysis of the Protestant Reformation
- Ekelund, Hébert, Tollison

This paper seeks to explain the initial successes and failures of Protestantism on economic grounds. It argues that the medieval Roman Catholic Church, through doctrinal manipulation, the exclusion of rivals, and various forms of price discrimination, ultimately placed members seeking the Z good "spiritual services" on the margin of defection. These monopolistic practices encouraged entry by rival firms, some of which were aligned with civil governments. The paper hypothesizes that Protestant entry was facilitated in emergent entrepreneurial societies characterized by the decline of feudalism and relatively unstable distribution of wealth and repressed in more homogeneous, rent-seeking societies that were mostly dissipating rather than creating wealth. In these societies the Roman Church was more able to continue the practice of price discrimination. Informal tests of this proposition are conducted by considering primogeniture and urban growth as proxies for wealth stability.

Causes and Consequences of the Protestant Reformation: https://pseudoerasmus.files.wordpress.com/2017/01/becker-pfaff-rubin-2016.pdf
- Sascha O. Becker, Steven Pfaff, Jared Rubin

The Protestant Reformation is one of the defining events of the last millennium. Nearly 500 years after the Reformation, its causes and consequences have seen a renewed interest in the social sciences. Research in economics, sociology, and political science increasingly uses detailed individual-level, city-level, and regional-level data to identify drivers of the adoption of the Reformation, its diffusion pattern, and its socioeconomic consequences. We take stock of this research, pointing out what we know and what we do not know and suggesting the most promising areas for future research.

Table 1: Studies of the Supply and Demand-Side Factors of the Reformation
Table 2: Studies on the Consequences of the Reformation: Human Capital
Table 3: Studies on the Consequences of the Reformation: Work and Work Ethic
Table 4: Studies on the Consequences of the Reformation: Economic Development
Table 5: Studies on the Consequences of the Reformation: Governance
Table 6: Studies on the “Dark” Consequences of the Reformation

LUTHER AND SULEYMAN: http://www.jstor.org.sci-hub.tw/stable/40506214
- Murat Iyigun

Various historical accounts have suggested that the Ottomans' rise helped the Protestant Reformation as well as its offshoots, such as Zwinglianism, Anabaptism, and Calvinism, survive their infancy and mature. Utilizing a comprehensive data set on violent confrontations for the interval between 1401 and 1700 CE, I show that the incidence of military engagements between the Protestant Reformers and the Counter-Reformation forces between the 1520s and 1650s depended negatively on the Ottomans' military activities in Europe. Furthermore, I document that the impact of the Ottomans on Europe went beyond suppressing ecclesiastical conflicts only: at the turn of the sixteenth century, Ottoman conquests lowered the number of all newly initiated conflicts among the Europeans roughly by 25 percent, while they dampened all longer-running feuds by more than 15 percent. The Ottomans' military activities influenced the length of intra-European feuds too, with each Ottoman-European military engagement shortening the duration of intra-European conflicts by more than 50 percent. Thus, while the Protestant Reformation might have benefited from - and perhaps even capitalized on - the Ottoman advances in Europe, the latter seems to have played some role in reducing conflicts within Europe more generally.

Religious Competition and Reallocation: The Political Economy of Secularization in the Protestant Reformation: http://www.jeremiahdittmar.com/files/RRR_20170919.pdf
- Davide Cantoni, Jeremiah Dittmar, Noam Yuchtman*

Using novel microdata, we document an unintended, first-order consequence of the Protestant Reformation: a massive reallocation of resources from religious to secular purposes. To understand this process, we propose a conceptual framework in which the introduction of religious competition shifts political markets where religious authorities provide legitimacy to rulers in exchange for control over resources. Consistent with our framework, religious competition changed the balance of power between secular and religious elites: secular authorities acquired enormous amounts of wealth from monasteries closed during the Reformation, particularly in Protestant regions. This transfer of resources had important consequences. First, it shifted the allocation of upper-tail human capital. Graduates of Protestant universities increasingly took secular, especially administrative, occupations. Protestant university students increasingly studied secular subjects, especially degrees that prepared students for public sector jobs, rather than church sector-specific theology. Second, it affected the sectoral composition of fixed investment. Particularly in Protestant regions, new construction from religious toward secular purposes, especially the building of palaces and administrative buildings, which reflected the increased wealth and power of secular lords. Reallocation was not driven by pre-existing economic or cultural differences. Our findings indicate that the Reformation played an important causal role in the secularization of the West.

look at Figure 4, holy shit

History: Science and the Reformation: http://www.nature.com/nature/journal/v550/n7677/full/550454a.html?WT.mc_id=TWT_NatureNews&sf126429621=1
The scientific and religious revolutions that began 500 years ago were not causally related, but were both stimulated by printing, argues David Wootton.
https://twitter.com/whyvert/status/923940525673103360
https://archive.is/JElPv
No, the Reformation did not cause the scientific revolution. Nice brief article. 👍

No RCT = No causal claims, for or against ;)
Though I'm open to a regression discontinuity design! cc: @pseudoerasmus
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may 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
The Political Economy of US Foreign Policy | pseudoerasmus
Summary : (Part 1 of 4) I critique commenter Matt’s argument that, at the deepest level, American foreign policy has sought a “favourable investment climate” for itself in the Third World.
econotariat  pseudoE  broad-econ  economics  growth-econ  history  early-modern  mostly-modern  usa  political-econ  foreign-policy  realpolitik  critique  incentives  values  world  developing-world  article  essay  🎩  cooperate-defect  cliometrics  pre-ww2 
may 2017 by nhaliday
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