Showing posts with label links. Show all posts
Showing posts with label links. Show all posts

Wednesday, June 20, 2012

A few links

Will soft drink restrictions in New York City reduce obesity? Aaron Carroll, from The Incidental Economist, says "no".

Paul Krugman is winning the macroeconomics debate. Really, he is.

Learn about health policy and the Affordable Care Act in a free class. Hat tip to Kevin Outterson at The Incidental Economist.

From The Guardian - Test policies in 'randomised controlled trials', nudge unit urges. Science? What's that?

What can you do with an economics degree? Well, for one, the video game company Valve is hiring:

(click to enlarge)

Friday, June 15, 2012

A new health insurance experiment

Does Medicaid help the poor, or do doctors turn away so many Medicaid patients that it actually hurts them? Katherine Baicker at Harvard discusses the results of a natural experiment in Ohio on yesterday's episode of Planet Money. I have not heard of such an interesting heath economics experiment since the RAND experiment in the '70s.

Thursday, May 31, 2012

Thoughts and articles on anarchism

I am not an anarchist, and I'm know for being critical of anarchists in the Keene area. In general, however, I tend to like anarchists. A few recent articles provide a sense of the fascinating social side of anarchism, a side that I enjoy.


What does an anarchist look like — or stand for?
“My message is, community not commodity,” Black said, a slogan handwritten on the back of her hat. “We need to recognize the value of our relationships and not the dollar signs that we put on things and people. … The problem is we don’t put any value into the relationships with our neighbors and friends. We see each other as walking dollars.”

It's a few weeks before May Day and I'm sitting in the living room of the Emma Goldman Finishing School, a four-story house on Beacon Hill that is also a 15-year-old experiment in anarchist-style living. It has 12 rooms for members, one guest room, a 500-square-foot garden, and some fruit trees dotting the property. Inside and outside, EGFS looks tidy, cozy, and totally unremarkable.
Addy, a young woman who used to work in social services but is now in nursing school, sits on a couch across the room. The house, she explains, was built in 1907, fell into disrepair, was eventually condemned by the city, and was collectively bought by a group of people in 1996. "It was in bad shape," she says. "Where you're sitting right now used to be all blackberry vines."
Addy is an anarchist, but she's no window-smasher. "For me," she says, "identifying as an anarchist means that reformist strategies are not working and I want to find more revolutionary strategies." Her revolutionary strategy is helping to manage the household finances in a way that, in her words, "resists capitalism."

Anarchistic and self-trained, are street medics the future of first aid?
A trained EMS team is standing 20 feet away, but the police aren't letting any medical workers through. The injured demonstrator's only resource is a team of street medics — fellow radicals, armed with basic first-aid knowledge. In all-black outfits with red duct-tape crosses on their sleeves, they quickly surround the guy and hustle to construct a makeshift splint.
Anarchistic, high-energy, and self- organized, street medics have been part of activist counterculture since the 1960s, with major presences at civil-rights protests, anti–Vietnam War actions, the American Indian Movement's occupation of Wounded Knee in 1973, anti-globalization protests in the 1990s and early aughts, and most recently, at Occupy encampments internationally. Street medics also take their skills to disaster areas: there were medics in New Orleans after Hurricane Katrina and in Haiti after the earthquake.

Unfortunately, many anarchists in the Keene area don't seem to grasp the concept of community, and their decision-making process is far too dysfunctional to organize anything as sophisticated as street medics. It's sad.

Monday, May 21, 2012

Markets and morality

The Boston Review is hosting an enlightening discussion about markets and morality, started by political philosopher Michael Sandel.

Here is the lead essay. Here's the discussion page.

I was surprised by Herbert Gintis' unyielding defense of economics and markets. As a former Marxist, I would have expected him to be more sympathetic to Sandel's opening arguments.

HT: John Tomasi.

Monday, May 14, 2012

Science fiction and the death of economics

Or the death of the economy, at least.

Paul Krugman says Ben Bernanke has been assimilated by the Borg: "he’s become more concerned, probably unconsciously, with defending the Fed’s institutional safety, because it’s the apostle of price stability, than with doing whatever he can to get this economy moving." Here's the more detailed accusation.

But others, like economics reporter Robert Samuelson, choose Team Bernanke in the "battle of the beards". (Sorry for the mixed metaphors.)

I lean towards Krugman, but it's a tough call. The Borg are hard to resist.

Economics and the death of science fiction

I want to post here more often. To make this happen, I'm trying to tweak my approach to blogging, posting articles here that I would normally reserve for facebook. Ideally this will create more posts without demanding much more of my time. And they're legitimately interesting articles, so why not?

Anyway, I like Charlie Stross. For someone who writes science fiction, he is unusually good with economics. (His book Accelerando is astounding.) In the last few months, he's written a few provocative blog posts about the economics of the book publishing industry, and the impact on science fiction in particular.

First, a post on Amazon and DRM [Digital Rights Management, an electronic security measure] (and an extension). He explains what a monopsony is!— quite exciting for me.

Then, informed speculation on how changing market structures will transform science fiction:
Authors responding to one another isn't unusual. But in SF/F it's particularly visible. It got started in the pages of the pulp magazines of the 1920s and 1930s and continues today, both in short fiction (we're unusual insofar as we still have a vibrant short fiction ecosystem) and at novel length. ...

I'm here to talk about something much more concrete: the likelihood that within another decade, two at most, science fiction as a literary genre category may well die. ...

our genre sits uneasily within boundaries delineated by the machinery of sales. And that creaking steam-age machinery is currently in the process of being swapped out for some kind of irridescent, gleaming post-modern intrusion from the planet internet. ...

This is going to drastically affect the quality and content of the internal dialog within our genre

Monday, April 2, 2012

Unconventional criticism

Critics of the economics profession generally argue that economics isn't a real science, that it's "value-laden", or overwhelmed by political bias, or outrageously myopic, or corrupted by corporate funding, or something like that.

I can't resist quoting a critic in the New York Times, who makes the opposite claim. Economists are too much like scientists, he says:

Economists, political scientists and sociologists have long suffered from an academic inferiority complex: physics envy. They often feel that their disciplines should be on a par with the “real” sciences and self-consciously model their work on them, using language (“theory,” “experiment,” “law”) evocative of physics and chemistry.

This might seem like a worthy aspiration. Many social scientists contend that science has a method, and if you want to be scientific, you should adopt it. The method requires you to devise a theoretical model, deduce a testable hypothesis from the model and then test the hypothesis against the world. If the hypothesis is confirmed, the theoretical model holds; if the hypothesis is not confirmed, the theoretical model does not hold. If your discipline does not operate by this method — known as hypothetico-deductivism — then in the minds of many, it’s not scientific.

Such reasoning dominates the social sciences today.

Mission accomplished, I say.

[Update: As I admit in the comments, I'm playing fast and loose with this essay in order to make a point.

Phil Arena has written an extensive review of the book that the essay is based on. Erik Voeten at The Monkey Cage also responds to the New York Times essay. My favorite comment comes from Andrew Gelman: "I think physicists have a bit of physics envy too."]Link

Monday, February 27, 2012

Friday, December 30, 2011

Drug war opportunity costs

From New Hampshire Magazine:
Reducing that access [to marijuana] was John Tommasi's life in the 1980s. An undercover cop in Salem, N.H., he was assigned in 1987 to the New Hampshire Drug Task Force, a state agency funded by the federal War on Drugs. He says the action was fast and furious: "As soon as you arrest one person, there's another five to 10 to take that person's place."
Tommasi was also a pilot and that became his undercover persona: "You're doing great felony work and you're not stuck on the barking dog calls. But at some point I realized I was not having any effect whatsoever. This is having no effect at all. So is this really the right way to go? So I started doing some research."
Tommasi's research was part of earning a Masters Degree in Economics to go with his MBA. His principal conclusion: "We have in economics what is known as opportunity cost. So if I'm working on violations with drugs then I'm not working on, say, burglaries or other crimes. And if you're out there on the drug war, you must be taking the dealers off the streets, right? That's not the case."
Instead, the purity and potency of the drugs had increased while the price had gone down. Tommasi published a report on how much money would be saved if marijuana were legalized. The report drew much public attention and criticism from law enforcement agencies.
Tommasi began teaching courses on the Drug War and is now a full-time professor at Bentley College in Massachusetts. But he's also still a cop: "I do Hampton in the summer and I've arrested people for marijuana because I took an oath to uphold the state laws and my integrity transcends my own personal views." Then Tommasi, the economist, has to add: "But if I make a marijuana arrest, I'm tied up for a couple of hours at the station booking and I'm not keeping peace on the streets of Hampton - and in the summer, it gets busy."
And more:
Opponents of decriminalization often point to the fact that charges of simple possession rarely lead to any jail time. Still, the number of marijuana arrests has been rising steadily. In 1995 arrests for marijuana possession were a third of all drug arrests. Now they are nearly half and that, says Ed Kelly [administrative justice of New Hampshire's circuit courts], creates a big problem. "If we have a courtroom filled with cases like the ones we're talking about - first offenders who are never coming back again and don't have a drug abuse problem - and it takes us all day to deal with those cases, that's a day that we don't have to deal with, say, a very difficult divorce case involving children. So we've got a family in crisis waiting to get into court and us trying to find a day to get that family into court to deal with their issues so they can get on with their lives. And we're dealing with these cases over in the other court room that are going to result in a $500 fine and cost the state lots of money to prosecute. All for what I think is a pretty unclear objective."
It's a fantastic article. Definitely worth reading.

Tuesday, July 5, 2011

Unfunded pension liabilities

Edward Glaeser argues that we should pay government workers to give up part of their pensions:
The problem with public pensions isn’t that teachers or firefighters or police officers are overcompensated. These are tough jobs. The problem is that public workers get too little of their pay while they work and too much when they retire. According to a new paper by Maria Fitzpatrick of Stanford University: “Schools and other public sector employers contribute nearly three times as much per hour worked to the pension benefits of their employees as their counterparts in the private sector.”

Many public workers would vastly prefer to get more money today in exchange for lower pension payments, Fitzpatrick finds in the study, “How Much Do Public School Teachers Value Their Retirement Benefits?

In 1998, Illinois upgraded the pensions that teachers would get on future earnings and gave these employees an opportunity to increase their pension payout based on past earnings. Teachers had the option of making a one-time payment equal to 1 percent of their salary per year of service prior to 1998, up to a maximum of 20 percent.

The returns of taking the deal were quite high, Fitzpatrick wrote. “The average price of the upgrade offered to employees with 25 years of experience in 1998 was $15,245 while the expected costs of providing them with the extra retirement benefits if they all purchased would have been $94,166.”

Yet even given those extremely generous terms, plenty of teachers preferred to have more money immediately: “More than 20 percent of these employees do not purchase more retirement benefits even when offered them at just 16 cents on the dollar.” Using a sophisticated statistical procedure, she determines that “averaging along the entire demand curve, employees in [Illinois Public Schools] are willing to trade just 30 cents for a dollar’s worth of future benefits.”

This work suggests that we should offer cash to public workers in exchange for giving up some of their future benefits. If public workers really only value their pensions at 30 cents on the dollar, then a deal where we paid workers 65 cents today to reduce the net present value of their benefits by a dollar, would essentially make both public workers and taxpayers 35 cents richer. [Emphasis added.]
The entire article is worth a read.

Thursday, May 26, 2011

Why are state legislators so crazy lately?

Betsy Russell at the Idahoan Spokesman-Review offers some informed speculation, drawing on a few high-profile political scientists.

HT: Seth Masket.