nhaliday + wealth-of-nations   203

Team *Decorations Until Epiphany* on Twitter: "@RoundSqrCupola maybe just C https://t.co/SFPXb3qrAE"
https://archive.is/k0fsS
Remember ‘BRICs’? Now it’s just ICs.
--
maybe just C
Solow predicts that if 2 countries have the same TFP, then the poorer nation should grow faster. But poorer India grows more slowly than China.

Solow thinking leads one to suspect India has substantially lower TFP.

Recent growth is great news, but alas 5 years isn't the long run!

FWIW under Solow conditional convergence assumptions--historically robust--the fact that a country as poor as India grows only a few % faster than the world average is a sign they'll end up poorer than S Europe.

see his spreadsheet here: http://mason.gmu.edu/~gjonesb/SolowForecast.xlsx
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december 2017 by nhaliday
King Kong and Cold Fusion: Counterfactual analysis and the History of Technology
How “contingent” is technological history? Relying on models from evolutionary epistemology, I argue for an analogy with Darwinian Biology and thus a much greater degree of contingency than is normally supposed. There are three levels of contingency in technological development. The crucial driving force behind technology is what I call S-knowledge, that is, an understanding of the exploitable regularities of nature (which includes “science” as a subset). The development of techniques depend on the existence of epistemic bases in S. The “inevitability” of technology thus depends crucially on whether we condition it on the existence of the appropriate S-knowledge. Secondly, even if this knowledge emerges, there is nothing automatic about it being transformed into a technique that is, a set of instructions that transforms knowledge into production. Third, even if the techniques are proposed, there is selection which reflects the preferences and biases of an economy and injects another level of indeterminacy and contingency into the technological history of nations.

https://twitter.com/whyvert/status/932451959079972865
https://archive.is/MBmyV
Moslem conquest of Europe, or a Mongol conquest, or a post-1492 epidemic, or a victory of the counter-reformation would have prevented the Industrial Revolution (Joel Mokyr)
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november 2017 by nhaliday
Global Evidence on Economic Preferences
- Benjamin Enke et al

This paper studies the global variation in economic preferences. For this purpose, we present the Global Preference Survey (GPS), an experimentally validated survey dataset of time preference, risk preference, positive and negative reciprocity, altruism, and trust from 80,000 individuals in 76 countries. The data reveal substantial heterogeneity in preferences across countries, but even larger within-country heterogeneity. Across individuals, preferences vary with age, gender, and cognitive ability, yet these relationships appear partly country specific. At the country level, the data reveal correlations between preferences and bio-geographic and cultural variables such as agricultural suitability, language structure, and religion. Variation in preferences is also correlated with economic outcomes and behaviors. Within countries and subnational regions, preferences are linked to individual savings decisions, labor market choices, and prosocial behaviors. Across countries, preferences vary with aggregate outcomes ranging from per capita income, to entrepreneurial activities, to the frequency of armed conflicts.

...

This paper explores these questions by making use of the core features of the GPS: (i) coverage of 76 countries that represent approximately 90 percent of the world population; (ii) representative population samples within each country for a total of 80,000 respondents, (iii) measures designed to capture time preference, risk preference, altruism, positive reciprocity, negative reciprocity, and trust, based on an ex ante experimental validation procedure (Falk et al., 2016) as well as pre-tests in culturally heterogeneous countries, (iv) standardized elicitation and translation techniques through the pre-existing infrastructure of a global polling institute, Gallup. Upon publication, the data will be made publicly available online. The data on individual preferences are complemented by a comprehensive set of covariates provided by the Gallup World Poll 2012.

...

The GPS preference measures are based on twelve survey items, which were selected in an initial survey validation study (see Falk et al., 2016, for details). The validation procedure involved conducting multiple incentivized choice experiments for each preference, and testing the relative abilities of a wide range of different question wordings and formats to predict behavior in these choice experiments. The particular items used to construct the GPS preference measures were selected based on optimal performance out of menus of alternative items (for details see Falk et al., 2016). Experiments provide a valuable benchmark for selecting survey items, because they can approximate the ideal choice situations, specified in economic theory, in which individuals make choices in controlled decision contexts. Experimental measures are very costly, however, to implement in a globally representative sample, whereas survey measures are much less costly.⁴ Selecting survey measures that can stand in for incentivized revealed preference measures leverages the strengths of both approaches.

The Preference Survey Module: A Validated Instrument for Measuring Risk, Time, and Social Preferences: http://ftp.iza.org/dp9674.pdf

Table 1: Survey items of the GPS

Figure 1: World maps of patience, risk taking, and positive reciprocity.
Figure 2: World maps of negative reciprocity, altruism, and trust.

Figure 3: Gender coefficients by country. For each country, we regress the respective preference on gender, age and its square, and subjective math skills, and plot the resulting gender coefficients as well as their significance level. In order to make countries comparable, each preference was standardized (z-scores) within each country before computing the coefficients.

Figure 4: Cognitive ability coefficients by country. For each country, we regress the respective preference on gender, age and its square, and subjective math skills, and plot the resulting coefficients on subjective math skills as well as their significance level. In order to make countries comparable, each preference was standardized (z-scores) within each country before computing the coefficients.

Figure 5: Age profiles by OECD membership.

Table 6: Pairwise correlations between preferences and geographic and cultural variables

Figure 10: Distribution of preferences at individual level.
Figure 11: Distribution of preferences at country level.

interesting digression:
D Discussion of Measurement Error and Within- versus Between-Country Variation
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october 2017 by nhaliday
“Editor’s Introduction to The New Economic History and the Industrial Revolution,” J. Mokyr (1998) | A Fine Theorem
I taught a fun three hours on the Industrial Revolution in my innovation PhD course this week. The absolutely incredible change in the condition of mankind that began in a tiny corner of Europe in an otherwise unremarkable 70-or-so years is totally fascinating. Indeed, the Industrial Revolution and its aftermath are so important to human history that I find it strange that we give people PhDs in social science without requiring at least some study of what happened.

My post today draws heavily on Joel Mokyr’s lovely, if lengthy, summary of what we know about the period. You really should read the whole thing, but if you know nothing about the IR, there are really five facts of great importance which you should be aware of.

1) The world was absurdly poor from the dawn of mankind until the late 1800s, everywhere.
2) The average person did not become richer, nor was overall economic growth particularly spectacular, during the Industrial Revolution; indeed, wages may have fallen between 1760 and 1830.
3) Major macro inventions, and growth, of the type seen in England in the late 1700s and early 1800s happened many times in human history.
4) It is hard for us today to understand how revolutionary ideas like “experimentation” or “probability” were.
5) The best explanations for “why England? why in the late 1700s? why did growth continue?” do not involve colonialism, slavery, or famous inventions.
econotariat  broad-econ  economics  growth-econ  cjones-like  summary  divergence  industrial-revolution  list  top-n  mokyr-allen-mccloskey  hi-order-bits  aphorism  wealth  wealth-of-nations  malthus  revolution  innovation  the-trenches  science  europe  the-great-west-whale  britain  conceptual-vocab  history  early-modern  technology  long-short-run  econ-metrics  data  time-series  conquest-empire  india  asia  scale  attaq  enlightenment-renaissance-restoration-reformation  roots  cycles  flux-stasis  whiggish-hegelian 
october 2017 by nhaliday
Global determinants of navigation ability | bioRxiv
Using a mobile-based virtual reality navigation task, we measured spatial navigation ability in more than 2.5 million people globally. Using a clustering approach, we find that navigation ability is not smoothly distributed globally but clustered into five distinct yet geographically related groups of countries. Furthermore, the economic wealth of a nation (Gross Domestic Product per capita) was predictive of the average navigation ability of its inhabitants and gender inequality (Gender Gap Index) was predictive of the size of performance difference between males and females.

- Figure 1 has the meat
- gender gap larger in richer/better-performing countries
- Anglo and Nordic countries do best (Finnish supremacy wins the day again)
- surprised China doesn't do better, probably a matter of development
- Singapore is close behind the Anglo-Nords tho
- speculation that practice of orienteering (originally Swedish) may be related to Nords doing well
- somewhat weird pattern wrt age
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september 2017 by nhaliday
A cross-country empirical test of cognitive abilities and innovation nexus - Munich Personal RePEc Archive
In this study we analyze the relationship between national cognitive abilities and innovational output using data from 124 countries of the world. By employing cross-country IQ scores traditionally used by psychological literature to represent national intelligence, and Economic Complexity Index as a novel measure of innovation, our study shows that there is a positive connection between them. We use a variety of tests to check the robustness of the nexus. Overall, our findings indicate that more intelligent nations export more sophisticated and diverse products to the world market and thus are more innovative. Therefore, developing countries should consider investing in human capital and related institutions if they are to boost innovative capabilities and move up the technology ladder in producing and exporting sophisticated and varied lines of products. This should bring them greater economic diversity which could be a right lever in mitigating negative external shocks.
study  economics  broad-econ  psychology  cog-psych  growth-econ  wealth-of-nations  innovation  pop-diff  rindermann-thompson  diversity  human-capital  hive-mind  iq  correlation  entropy-like  wealth  the-world-is-just-atoms  🎩  econ-metrics  econometrics  world  group-level  spearhead  macro  stylized-facts  behavioral-econ  biophysical-econ  microfoundations  🌞  hari-seldon 
september 2017 by nhaliday
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 Determinants of Trust
Both individual experiences and community characteristics influence how much people trust each other. Using data drawn from US localities we find that the strongest factors that reduce trust are: i) a recent history of traumatic experiences, even though the passage of time reduces this effect fairly rapidly; ii) belonging to a group that historically felt discriminated against, such as minorities (black in particular) and, to a lesser extent, women; iii) being economically unsuccessful in terms of income and education; iv) living in a racially mixed community and/or in one with a high degree of income disparity. Religious beliefs and ethnic origins do not significantly affect trust. The latter result may be an indication that the American melting pot at least up to a point works, in terms of homogenizing attitudes of different cultures, even though racial cleavages leading to low trust are still quite high.

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

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

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

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

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

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

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

does it generalize to first world?

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

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

individual payoff, etc.:

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

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

...

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

Do Trust and … [more]
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august 2017 by nhaliday
Clans, Guilds, and Markets: Apprenticeship Institutions and Growth in the Pre-Industrial Economy* | The Quarterly Journal of Economics | Oxford Academic
We argue that medieval European institutions such as guilds, and specific features such as journeymanship, can explain the rise of Europe relative to regions that relied on the transmission of knowledge within closed kinship systems (extended families or clans).
study  economics  growth-econ  broad-econ  history  medieval  europe  the-great-west-whale  occident  n-factor  kinship  coordination  institutions  wealth-of-nations  divergence  roots  technology  learning  spreading  network-structure  pdf  piracy  organizing  open-closed  microfoundations  feudal  explanans  orient  hari-seldon 
july 2017 by nhaliday
Does European development have Roman roots? Evidence from the German Limes
The results indicate that economic development—as mea-sured by luminosity—is indeed significantly and robustly larger in the formerly Roman part of Germany. The study identifies the persistence of the Roman road network until the present an important factor causing this developmental advantage of the formerly Roman part ofGermany both by fostering city growth and by allowing for a denser road network.

https://twitter.com/GarettJones/status/888521595416793089
https://archive.is/ozKku
CC: @GarettJones this puts a new spin on deep history! Hard to explain...
I've got a theory, have a partial model but need some time to formalize it. I've called it the Radio Brain Hypothesis...
pdf  study  economics  growth-econ  cliometrics  broad-econ  history  iron-age  medieval  mostly-modern  europe  germanic  path-dependence  divergence  shift  transportation  network-structure  urban  pseudoE  within-group  wealth-of-nations  natural-experiment  microfoundations  mediterranean  the-classics  conquest-empire  the-great-west-whale  geography  infrastructure  multi  twitter  social  commentary  backup  spearhead  econotariat  garett-jones  aphorism  ideas  branches  urban-rural  hari-seldon 
july 2017 by nhaliday
Seven charts that show how the developed world is losing its edge
Savings China’s gross savings (at market exchange rates) are nearly as large as those of the US and EU combined. China saves almost half of its national income. This extraordinarily high share is likely to fall but that decline is set to be gradual, since Chinese households are likely to remain frugal and the share of profits in national income is likely to remain high.

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

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

...

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

https://twitter.com/menangahela/status/956993883556208641
https://archive.is/HKov7
this seems not good

China's Financial Debt: Everything You Know Is Wrong: http://www.unz.com/article/chinas-financial-debt-everything-you-know-is-wrong/
As China Piles on Debt, Consumers Seek a Piece of the Action: https://www.nytimes.com/2017/09/25/business/china-debt-consumers.html
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july 2017 by nhaliday
Does Management Matter? Evidence from India
We have shown that management matters, with improvements in management practices improving plant-level outcomes. One response from economists might then be to argue that poor management can at most be a short-run problem, since in the long run better managed firms should take over the market. Yet many of our firms have been in business for 20 years and more.

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

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

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

https://twitter.com/pseudoerasmus/status/885915088951095296

http://marginalrevolution.com/marginalrevolution/2017/03/india-much-entrepreneurial-society-united-states-thats-problem.html
However, when we reverse the employment statistic–only ~15% of Indians work for a firm compared to approximately 90% of US workers we see the problem. Entrepreneurship in India isn’t a choice, it’s a requirement. Indian entrepreneurship is a consequence of India’s failed economy. As a I wrote in my Cato paper with Goldschlag, less developed countries in general, not just India, have more entrepreneurs.

...

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

blames colonialism, idk, might have contributed

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

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

http://www.economist.com/news/books-and-arts/21716019-penchant-criminality-electoral-asset-india-worlds-biggest
Sadly, this is not a book about some small, shady corner of Indian politics: 34% of the members of parliament (MPs) in the Lok Sabha (lower house) have criminal charges filed against them; and the figure is rising (see chart). Some of the raps are peccadillos, such as rioting or unlawful assembly—par for the course in India’s raucous local politics. But over a fifth of MPs are in the dock for serious crimes, often facing reams of charges for anything from theft to intimidation and worse. (Because the Indian judicial system has a backlog of 31m cases, even serious crimes can take a decade or more to try, so few politicians have been convicted.) One can walk just about the whole way from Mumbai to Kolkata without stepping foot outside a constituency whose MP isn’t facing a charge.

...

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

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

http://www.bbc.com/news/magazine-36446652
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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 different view of the World | The Blog by Javier
Today I have been playing with one of these applications. These are three of the cartograms I made:

- In the first one: area represents GDP (in purchasing power parity) whereas colour shows GDP per capita (again in PPP).
- The second one shows: military expenditure (PPP) as the area of countries whereas colour shows military expenditure as a percentage of GDP.
- The last one has area representing again military expenditure (PPP) and colour showing military expenditure per capita (PPP).
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july 2017 by nhaliday
Revealing the Economic Consequences of Group Cohesion
A comprehensive program of new experiments reveals the considerable economic impact of cohesion: higher cohesion groups are significantly more likely to achieve Pareto-superior outcomes in classic weak-link coordination games. We show that effects of cohesion are economically large, robust, and portable. We identify social preferences as a primary mechanism explaining the effects of cohesion.

...

Our workhorse to study group outcomes is a weak-link coordination game chosen because it captures economically interesting problems endemic to organizations and teams (e.g., Camerer and Weber (2013)). In our version of the weak-link game, inspired by Brandts and Cooper (2006), group members simultaneously choose an effort level. Payoffs to each group member then depend on their own effort and the lowest effort chosen by anyone (the “weakest link”) in the group. The game has multiple strict Pareto-ranked Nash equilibria in material payoffs. This feature makes it particularly interesting for our purposes because it combines two dimensions of group success: features of coordination (choosing the same effort level as other group members) and cooperation (groups achieving Pareto-superior Nash equilibria). We expected our weak-link game to be a “harsh” environment in the sense that most groups who play this game under anonymity and in the absence of pre-existing social relationships will collapse to the Pareto-worst equilibrium and never escape from it (Brandts and Cooper (2006), and own replication).

As we show in Section V, group cohesion is a key determinant of behavior in our experiments: low cohesion groups usually descend rapidly to minimum effort; high cohesion groups fare much better and high cohesion appears necessary (though not sufficient) for achieving Pareto-superior outcomes. Surprisingly, our measure of group cohesion is the only variable that successfully predicts cooperation success; none of more than twenty control variables (demographics and group characteristics) explain minimum effort. Further experiments show that our results are robust to the timing of oneness measurement (before or after play of the weak-link game). By benchmarking our results against the effect of monetary incentives, we also show (Section VI) that the effortenhancing effects of group cohesion are sizeable: large financial incentives are needed to achieve the levels of minimum effort expected for high cohesion groups.

In Section VII we turn to an explanation of our results. A rational choice perspective suggests three natural channels through which group cohesion could operate: it might affect some combination of group members’ social preferences, their beliefs or the form of their strategic reasoning. Considering social preferences, it is plausible to assume that members of highly cohesive groups care about one another and so place weight on each other’s earnings.1 In our weak-link game, if players do draw utility from each other’s earnings, this is tantamount to (some) sharing of earnings, which reduces strategic risk and fosters coordination on Pareto-superior equilibria.2 In relation to beliefs, highly cohesive groups may be more confident in simulating other group members’ thought processes and likely actions, perhaps because of a history of interactions in different (related) situations, which allows for implicit learning (e.g., Holyoak and Spellman (1993), Rick and Weber (2010)). Finally, group cohesion might influence the nature of strategic reasoning in more substantive ways. For instance, according to one model of strategic thinking, “team reasoning” (e.g., Sugden (2003), Bacharach (2006)), people think in terms of what would be best for the team (e.g., picking the Pareto-best equilibrium) and are inclined to do their part in implementing the group-optimal outcome. An interesting possibility is that team reasoning may be more likely the more cohesive the team is. These three channels might operate jointly and potentially reinforce each other in high cohesion groups. By contrast, low cohesion groups may have low levels of social preferences, little implicit learning to draw on from shared situations, and no team perception to facilitate team reasoning.

We probe these possibilities in two steps. We first show that subjects who report high oneness with their fellow group members are indeed more likely to expose themselves to the strategic risk of choosing high initial effort in our weak-link games; they are also less “harsh” in their responses when others’ effort levels are below their own. In highly cohesive groups, these tendencies apply across group members promoting coordination on equilibria above the Pareto-worst.

Our second step is to identify the social preferences channel as a promising route for explaining observed effects of group cohesion. We demonstrate this via additional experiments in which unrelated and anonymous group members play weak-link games but with all earnings shared equally. We interpret this manipulation as inducing a limiting form of social preferences (where all put equal weight on everyone’s material payoffs). The results show patterns of effort (opening levels and dynamics) very comparable to the top third most cohesive groups from our main experiment. Thus, social preferences provide a parsimonious candidate explanation of how group cohesion promotes Pareto-superior equilibria.

Smart groups of smart people: Evidence for IQ as the origin of collective intelligence in the performance of human groups: http://www.sciencedirect.com/science/article/pii/S0160289616303282
Group-IQ almost exclusively reflects individual cognition. (80% variance explained)
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june 2017 by nhaliday
Stages of Diversification
This paper studies the evolution of sectoral concentration in relation to the level of per capita income. We show that various measures of sectoral concentration follow a U-shaped pattern across a wide variety of data sources: countries first diversify, in the sense that economic activity is spread more equally across sectors, but there exists, relatively late in the development process, a point at which they start specializing again. We discuss this finding in light of existing theories of trade and growth, which generally predict a monotonic relationship between income and diversification. (JEL F43, F15, O40)

seems unhealthy to me (complacency)
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june 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
Comprehensive Military Power: World’s Top 10 Militaries of 2015 - The Unz Review
gnon  military  defense  scale  top-n  list  ranking  usa  china  asia  analysis  data  sinosphere  critique  russia  capital  magnitude  street-fighting  individualism-collectivism  europe  germanic  world  developing-world  latin-america  MENA  india  war  meta:war  history  mostly-modern  world-war  prediction  trends  realpolitik  strategy  thucydides  great-powers  multi  news  org:mag  org:biz  org:foreign  current-events  the-bones  org:rec  org:data  org:popup  skunkworks  database  dataset  power  energy-resources  heavy-industry  economics  growth-econ  foreign-policy  geopolitics  maps  project  expansionism  the-world-is-just-atoms  civilization  let-me-see  wiki  reference  metrics  urban  population  japan  britain  gallic  allodium  definite-planning  kumbaya-kult  peace-violence  urban-rural  wealth  wealth-of-nations  econ-metrics  dynamic  infographic 
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
Double world GDP | Open Borders: The Case
Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?: https://www.aeaweb.org/articles?id=10.1257/jep.25.3.83
https://openborders.info/innovation-case/
https://www.economist.com/news/world-if/21724907-yes-it-would-be-disruptive-potential-gains-are-so-vast-objectors-could-be-bribed
The Openness-Equality Trade-Off in Global Redistribution: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2509305
https://www.wsj.com/articles/opening-our-borders-would-overwhelm-america-1492366053
Immigration, Justice, and Prosperity: http://quillette.com/2017/07/29/immigration-justice-prosperity/

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

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

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

Why nation-states are good: https://aeon.co/essays/capitalists-need-the-nation-state-more-than-it-needs-them
The nation-state remains the best foundation for capitalism, and hyper-globalisation risks destroying it
- Dani Rodrik
Given the non-uniqueness of practices and institutions enabling capitalism, it’s not surprising that nation-states also resolve key social trade-offs differently. The world does not agree on how to balance equality against opportunity, economic security against innovation, health and environmental risks against technological innovation, stability against dynamism, economic outcomes against social and cultural values, and many other consequences of institutional choice. Developing nations have different institutional requirements than rich nations. There are, in short, strong arguments against global institutional harmonisation.
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june 2017 by nhaliday
How important was colonial trade for the rise of Europe? | Economic Growth in History
The latter view became the orthodoxy among economists and economic historians after Patrick O’Brien’s 1982 paper, which in one of many of Patrick’s celebrated phrases, claims that “”the periphery vs peripheral” for Europe. He concludes the paper by writing:

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

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

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

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

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

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

...

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

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

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

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

...

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

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

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

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

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

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

...

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

...

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

...

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

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

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

...

There was a realization in Britain that colonies were not particularly economically beneficial to the home economy. … [more]
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june 2017 by nhaliday
The Data We Have vs. the Data We Need: A Comment on the State of the “Divergence” Debate (Part I) | The NEP-HIS Blog
https://nephist.wordpress.com/2017/06/06/the-data-we-have-vs-the-data-we-need-a-comment-on-the-state-of-the-divergence-debate-part-ii/
https://twitter.com/pseudoerasmus/status/832260704690434048
Maybe as reaction to Pomeranz, the Great Divergence gets dated earlier & earlier & earlier on the slimmest evidence. Next: Pangaea breakup
https://twitter.com/pseudoerasmus/status/876088100774174720
I think it's a bit out of control, the urge to keep bringing the roots of the great divergence earlier and earlier and earlier
https://twitter.com/pseudoerasmus/status/628527390453538816
@s8mb @antonhowes I am impatient w explanations which do not start w origination/adoption/diffusion technology as proximate cause
@s8mb @antonhowes in respect of which finance, market integration, & formal institutions all dead ends for divergence of West with the Rest
https://twitter.com/pseudoerasmus/status/847054219790159879
Are you more with Pomeranz that there's not major difference until c. 1750 or 1800, or do you put departure much earlier?
it's now beyond doubt established there was a major diff in living standards, state capacity, market integr+
between the most advanced regions of China and the most advanced regions of Europe, no doubt
https://twitter.com/pseudoerasmus/status/534328741754048512
@bswud +broadberry estimates evidence groupthink on matter (i.e., everyone wants to locate precursor to IR earlier and earlier) @antonhowes

The Little Divergence: https://pseudoerasmus.com/2014/06/12/the-little-divergence/
http://voxeu.org/article/european-and-asian-incomes-1914-new-take-great-divergence
The Early Transformation of Britain's Economy: https://growthecon.com/blog/Britain-Shares/
There’s a nice working paper out by Patrick Wallis, Justin Colson, and David Chilosi called “Puncturing the Malthus Delusion: Structural Change in the British Economy before the Industrial Revolution, 1500-1800”. The big project they undertake here is to mine the probate inventories (along with several other sources) from Britain in this period to build up a picture of the rough allocation of workers across sectors. They do a very nice job of walking through their data sources, and the limitations, in the paper, so let me leave those details aside. In short, they use the reported occupations in wills to back out a picture of the sectoral structure, finding it consistent with other sources based on apprentice records, as well as prior estimates from specific years.

http://scholars-stage.blogspot.com/2013/11/another-look-at-rise-of-west-but-with.html
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june 2017 by nhaliday
Why Was It Europeans Who Conquered the World?
By the 1700s Europeans dominated the gunpowder technology, which was surprising, because it had originated in China and been used with expertise throughout Eurasia. To account for their dominance, historians have invoked competition, but it cannot explain why they pushed this technology further than anyone else. The answer lies with a simple tournament model of military competition that allows for learning by doing. Political incentives and military conditions then explain why the rest of Eurasia fell behind Europeans in developing the gunpowder technology. The consequences were huge, from colonialism to the slave trade and even the Industrial Revolution.
pdf  study  piracy  economics  growth-econ  broad-econ  history  early-modern  europe  the-great-west-whale  divergence  anglosphere  china  asia  sinosphere  technology  war  meta:war  martial  adversarial  military  conquest-empire  peace-violence  competition  pseudoE  🎩  roots  comparison  wealth-of-nations  great-powers  expansionism  cultural-dynamics  s:*  frontier  occident  microfoundations  decentralized  orient  explanans  anthropology  hari-seldon  gnosis-logos 
june 2017 by nhaliday
PRE-INDUSTRIAL INEQUALITY*
Fig. 1: maximum possible Gini index still allowing subsistence of population (all surplus redistributed to 1 head honcho)
Fig. 2: scatter plot of Gini vs income, as well as possibility frontier

Ye Olde Inæqualitee Shoppe: https://pseudoerasmus.com/2014/10/01/inequality-possibility-frontier/
Gini indices, mean income, maximum feasible Gini, and "inequality extraction ratios" (gini2/max poss. inequality): https://pseudoerasmus.files.wordpress.com/2014/09/blwpg263.pdf
Growth and inequality in the great and little divergence debate: a Japanese perspective: http://onlinelibrary.wiley.com/doi/10.1111/ehr.12071/epdf
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june 2017 by nhaliday
The Agricultural Basis of Comparative Development
This article shows, in a two-sector Malthusian model of endogenous population growth, that output per capita, population density, and industrialization depend upon the labor intensity of agricultural production. Because the diminishing returns to labor are less pronounced, high labor intensity (as in rice production) leads not only to a larger population density but also to lower output per capita and a larger share of labor in agriculture. Agronomic and historical evidence confirm that there are distinct, inherent differences between rice and wheat production. A calibration of the model shows that a relatively small difference in labor intensity in agriculture can account for a large portion of the observed differences in industrialization, output per capita, and labor productivity between Asia and Europe prior to the Industrial Revolution. Significantly, these differences can be explained even though sector-level total factor productivity levels and the efficiency of factor markets are held constant in the two regions.

INDUSTRIOUS PEASANTS IN EAST AND WEST: MARKETS, TECHNOLOGY, AND FAMILY STRUCTURE IN JAPANESE AND WESTERN EUROPEAN AGRICULTURE: http://sci-hub.tw/http://onlinelibrary.wiley.com/doi/10.1111/j.1467-8446.2011.00331.x/abstract
pdf  study  economics  growth-econ  broad-econ  pseudoE  cliometrics  world  developing-world  wealth-of-nations  econ-productivity  divergence  labor  agriculture  environment  🎩  🌞  pop-diff  multi  piracy  comparison  europe  the-great-west-whale  asia  japan  sinosphere  orient  microfoundations  flexibility  marginal  geography  explanans  occident  china  scale  fluid  malthus  efficiency  models 
june 2017 by nhaliday
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/
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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
The material over the ideological – Gene Expression
I come not to praise or bury Max Weber. Rather, I come to commend where warranted, and dismiss where necessary.

The problem as I see it is that though a meticulous scholar, Max Weber is the father of erudite sophistry which passes as punditry. Though he was arguably a fox, his genealogy has given rise to many hedgehogs.

Weber is famous for his work on relating the Protestant ethic and capitalism (more precisely, Calvinism). In general I think Weber is less right than he is wrong on this issue. But the bigger problem is that Weber’s style of interpretative historical analysis also has spawned many inferior and positively muddled imitators, whether consciously or not.

To my mind the problems with Weber’s sweeping generalizations, interpretations, and inferences, are clearest on the topic of China. His assertions on the nature of the Chinese mind informed by Confucianism, and how it would relate to (and hinder) modern economic development are very hit or miss.
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may 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.
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may 2017 by nhaliday
Have Productivity Levels Converged? Productivity Growth, Convergence, and Welfare in the Very Long Run
Economists believe that because technology is a public good national productivity levels should "converge."

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

...

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

nice
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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
pdf  study  economics  growth-econ  broad-econ  history  medieval  early-modern  religion  christianity  protestant-catholic  revolution  institutions  cliometrics  🎩  europe  the-great-west-whale  chart  roots  entrepreneurialism  wealth-of-nations  rent-seeking  inequality  market-power  industrial-org  political-econ  anglosphere  sociology  polisci  egalitarianism-hierarchy  flexibility  supply-demand  models  analysis  path-dependence  divergence  leviathan  theos  enlightenment-renaissance-restoration-reformation  cultural-dynamics  s:*  multi  pseudoE  piracy  conquest-empire  war  islam  mediterranean  eastern-europe  incentives  modernity  north-weingast-like  open-closed  MENA  time  density  unintended-consequences  correlation  article  survey  marginal  equilibrium  competition  distribution  wealth  comparison  things  homo-hetero  discrimination  legacy  urban  trust  corruption  morality  ethics  n-factor  diversity  redistribution  welfare-state  flux-stasis  data  scale  causation  endo-exo  natural-experiment  meta-analysis  list  education  hum 
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
org:popup  albion  wonkish  econotariat  rhetoric  essay  contrarianism  methodology  economics  micro  social-choice  elections  government  politics  polisci  incentives  altruism  social-norms  democracy  cynicism-idealism  optimism  antidemos  morality  near-far  ethics  map-territory  models  cooperate-defect  anthropology  coordination  multi  twitter  social  commentary  pseudoE  broad-econ  wealth-of-nations  rent-seeking  leviathan  pop-diff  gnon  political-econ  public-goodish  tv  review  garett-jones  backup  recommendations  microfoundations  wiki  britain  organizing  interests  applicability-prereqs  the-watchers  noblesse-oblige  n-factor  self-interest  cohesion  EGT  world  guilt-shame  alignment 
may 2017 by nhaliday
Constitutions and Commitment: The Evolution of Institutional Governing Public Choice in Seventeenth-Century England
The article studies the evolution of the constitutional arrangements in seventeenth-century England following the Glorious Revolution of 1688. It focuses on the relationship between institutions and the behavior of the government and interprets the institutional changes on the basis of the goals of the winners secure property rights, protection of their wealth, and the elimination of confiscatory government. We argue that the new institutions allowed the government to commit credibly to upholding property rights. Their success was remarkable, as the evidence from capital markets shows.

http://www.nber.org/papers/w17206
pdf  study  economics  politics  polisci  growth-econ  institutions  history  early-modern  britain  anglosphere  government  antidemos  revolution  civil-liberty  capitalism  roots  🎩  garett-jones  broad-econ  wealth-of-nations  law  leviathan  political-econ  the-great-west-whale  rent-seeking  property-rights  modernity  north-weingast-like  multi  debate  microfoundations  axioms  organizing  interests  feudal 
may 2017 by nhaliday
Economic Growth & Human Biodiversity | Pseudoerasmus
https://twitter.com/HoustonEuler/status/889522526057050112
Good policy or good luck? Country growth performance and temporary shocks*: https://pseudoerasmus.files.wordpress.com/2015/03/easterly-kremer-pritchett-summers.pdf

Africa is urbanising without globalising: https://capx.co/africa-is-urbanising-without-globalising/
What most African cities get by on is money from natural resources. As the Brookings Institution explains here, African cities are built for consuming, not creating, wealth. The elite who capture oil or mining revenues have to live somewhere – and they concentrate their spending in cities. That is why the nightlife and restaurant scene in Kinshasa is so good, even though nothing else works. It’s the main thing the city produces. The poor flock in, hoping to feed on the scraps. Extreme inequality isn’t so much a product of the system; it is the cause of it.

Why Africa’s development model puzzles economists: https://www.economist.com/news/finance-and-economics/21726697-structural-transformation-its-economies-not-following-precedents-why

https://twitter.com/tcjfs/status/861010320483024896
So many African countries are poor because they lack freedom, property rights, markets, and the rule of law.

People are laughing at this but it's true. Trouble is property rights and rule of law are much easier said than done.

Dentists and Freedom in Ivory Coast: https://www.cato.org/blog/dentists-freedom-ivory-coast
pseudoE  econotariat  broad-econ  economics  growth-econ  wealth-of-nations  race  world  developing-world  asia  sinosphere  china  japan  korea  india  latin-america  europe  the-great-west-whale  divergence  iq  path-dependence  africa  🎩  🌞  backup  chart  article  pop-diff  s:*  convergence  spearhead  microfoundations  multi  twitter  social  discussion  unaffiliated  pdf  study  easterly  larry-summers  org:ngo  wonkish  error  elite  urban  energy-resources  long-short-run  temperance  inequality  class  commentary  gnon  right-wing  randy-ayndy  garett-jones  institutions  property-rights  leviathan  time-series  econ-metrics  data  visualization  history  mostly-modern  attaq  urban-rural  the-bones  marginal  hive-mind  rindermann-thompson  hari-seldon 
may 2017 by nhaliday
What would count as an explanation of the size of China? - Marginal REVOLUTION
econotariat  marginal-rev  discussion  speculation  links  broad-econ  history  iron-age  medieval  early-modern  economics  growth-econ  divergence  political-econ  leviathan  incentives  geopolitics  world  asia  china  roots  coordination  decentralized  stylized-facts  government  institutions  cultural-dynamics  wealth-of-nations  homo-hetero  sinosphere  list  environment  agriculture  multi  twitter  social  commentary  turchin  big-picture  deep-materialism  pdf  cliometrics  scale  orient  chart  🌞  🎩  mediterranean  the-classics  comparison  conquest-empire  the-great-west-whale  europe  microfoundations  geography  explanans  occident  competition  anthropology  hari-seldon  piracy  study  pseudoE  war  taxes  demographics  population  density  monetary-fiscal  causation  gavisti  urban-rural  maps  data  visualization  frontier  civilization  peace-violence  time-series  walter-scheidel  article  polisci 
may 2017 by nhaliday
Chinese innovations | West Hunter
I’m interested in hearing about significant innovations out of contemporary China. Good ones. Ideas, inventions, devices, dreams. Throw in Outer China (Taiwan, Hong Kong, Singapore).

super nationalistic dude ("IC") in the comments section (wish his videos had subtitles):
https://westhunt.wordpress.com/2017/05/10/chinese-innovations/#comment-91378
https://westhunt.wordpress.com/2017/05/10/chinese-innovations/#comment-91378
https://westhunt.wordpress.com/2017/05/10/chinese-innovations/#comment-91382
https://westhunt.wordpress.com/2017/05/10/chinese-innovations/#comment-91292
https://westhunt.wordpress.com/2017/05/10/chinese-innovations/#comment-91315

on the carrier-killer missiles: https://westhunt.wordpress.com/2017/05/10/chinese-innovations/#comment-91280
You could take out a carrier task force with a nuke 60 years ago.
--
Then the other side can nuke something and point to the sunk carrier group saying “they started first”.

Hypersonic anti-ship cruise missiles, or the mysterious anti-ship ballistic missiles China has avoid that.
--
They avoid that because the law of physics no longer allow radar.

https://westhunt.wordpress.com/2017/05/10/chinese-innovations/#comment-91340
I was thinking about the period in which the United States was experiencing rapid industrial growth, on its way to becoming the most powerful industrial nation. At first not much science, buts lots and lots of technological innovation. I’m not aware of a corresponding efflorescence of innovative Chinese technology today, but then I don’t know everything: so I asked.

I’m still not aware of it. So maybe the answer is ‘no’.

hmm: https://westhunt.wordpress.com/2017/05/10/chinese-innovations/#comment-91389
I would say that a lot of the most intelligent faction is being siphoned over into government work, and thus not focused in technological innovation. We should expect to see societal/political innovation rather than technological if my thesis is true.

There’s some evidence of that.
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may 2017 by nhaliday
Growing Collectivism: Irrigation, Group Conformity and Technological Divergence
This paper examines the origins of collectivist cultures that emphasize group conformity over individual autonomy. In line with the hypothesis that collaboration within groups in pre-industrial agriculture favored the emergence of collectivism, I find that societies whose ancestors jointly practiced irrigation agriculture have stronger collectivist norms today. The positive effect of irrigation on contemporary collectivism holds across countries, subnational districts within countries, and migrants. For causal identification, I instrument the historical adoption of irrigation by its geographic suitability. Furthermore, this paper establishes that, by favoring conformity, irrigation agriculture has contributed to the global divergence of technology. I document (i) a negative effect of traditional irrigation agriculture on contemporary innovativeness of countries, cities, and migrants; (ii) a positive effect on selection into routine-intensive occupations; and (iii) that the initial technological advantage of irrigation societies was reversed after 1500.

http://marginalrevolution.com/marginalrevolution/2016/09/varying-rainfall-make-people-collectivists.html
This kind of investigation is always going to be fraught with uncertainty and also controversy, given imperfections of data and methods. Nonetheless I find this one of the more plausible macro-historical hypotheses, perhaps because of my own experience in central Mexico, where varying rainfall still is the most important economic event of the year, though it is rapidly being supplanted by the variability of tourist demand for arts and crafts. And yes, they are largely collectivist, at least at the clan level, with extensive systems of informal social insurance and very high implicit social marginal tax rates on accumulated wealth.

Have you noticed it rains a lot in England?

(lol)

http://marginalrevolution.com/marginalrevolution/2014/05/chinese-wheat-eaters-vs-rice-eaters-speculative.html
http://www.scmp.com/news/china/article/1508726/why-chinas-wheat-growing-north-produces-individualists-and-its-rice
https://gnxp.nofe.me/2008/08/31/the-wealth-of-communities/

Irrigation and Autocracy: http://www.econ.ku.dk/bentzen/Irrigation_and_Autocracy.pdf
http://marginalrevolution.com/marginalrevolution/2012/08/in-defense-of-the-wittvogel-thesis.html
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may 2017 by nhaliday
Climate change impacts on global agricultural land availability
Regions characterized by relatively high latitudes such as Russia, China and the US may expect an increase of total arable land by 37–67%, 22–36% and 4–17%, respectively, while tropical and sub-tropical regions may suffer different levels of lost arable land. For example, South America may lose 1–21% of its arable land area, Africa 1–18%, Europe 11–17%, and India 2–4%. When considering, in addition, land used for human settlements and natural conservation, the net potential arable land may decrease even further worldwide by the end of the 21st century under both scenarios due to population growth. Regionally, it is likely that both climate change and population growth will cause reductions in arable land in Africa, South America, India and Europe. However, in Russia, China and the US, significant arable land increases may still be possible. Although the magnitudes of the projected changes vary by scenario, the increasing or decreasing trends in arable land area are regionally consistent.
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may 2017 by nhaliday
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