Tyler Cowen

European countries that refuse to share the burden of high immigration will face a financial charge of about €250,000 per refugee, according to Brussels’ plans to overhaul the bloc’s asylum rules.

The punitive financial pay-off clause is one of the most contentious parts of the European Commission’s proposed revision of the so-called Dublin asylum regulation, due to be revealed on Wednesday…

According to four people familiar with the proposal, this contribution was set at €250,000 per asylum seeker in Monday’s commission draft. But those involved in the talks say it may well be adjusted in deliberations over coming days.

“The size of the contribution may change but the idea is to make it appear like a sanction,” said one official who has seen the proposal. Another diplomat said in any event the price of refusing to host a refugee would be “hundreds of thousands of euros”.

Here is the full FT piece.  Elsewhere on the pricing front, there is talk that at some point Uber will move away from surge pricing.

Tuesday assorted links

by on May 3, 2016 at 12:34 pm in Uncategorized | Permalink

Analysts who have concluded that inequality in life expectancy is increasing have generally focused on life expectancy at age 40 to 50. However, we show that among infants, children, and young adults, mortality has been falling more quickly in poorer areas with the result that inequality in mortality has fallen substantially over time. This is an important result given the growing literature showing that good health in childhood predicts better health in adulthood and suggests that today’s children are likely to face considerably less inequality in mortality as they age than current adults.

We also show that there have been stunning declines in mortality rates for African-Americans between 1990 and 2010, especially for black men.

That is from Janet Currie and Hannes Schwandt.

This is often forgotten:

One traditional way of measuring nations’ power relative to each other is to compare their gross domestic product. By this measure, Russia gained economically on all of its competitors as well as on the world as a whole in 1999-2015.

And this:

The GINC measures national power as the geometric mean of the following ratios:

  • TPR = total population of country ratio;
  • UPR = urban population of country ratio;
  • ISR = steel production of country ratio;
  • ECR = primary energy consumption ratio;
  • MER = military expenditure ratio;
  • MPR = military personnel ratio.

The GINC shows Russia’s power rising by 6.53 per cent in 1999-2014, while the power of the US, UK, France, Germany and Italy declined 13.14 per cent, 24.42 per cent, 24.23 per cent, 29.92 per cent and 27.29 per cent respectively in 2014 compared with 1999.

That is from Simon Saradzhyan writing for the FT.

JR, a loyal MR reader, writes to me:

Your loyal readers, such as myself, know of your love for mormons. This made me curious whether you think the tithing requirement in mormonism have have the same incentive effects as a tax.

On one view, people will only bother giving if they are actually pleased about being able to contribute to church so the tithing is a form of consumption, not a tax.

On another view the tithing is a price you pay to maintain social status in your group. You may be able to cheat a little, but not too much on the requirement before the church notices that you are not paying a sum that corresponds to your apparent income. In that case one would expect it to act more like a tax.

Finally one can speculate that even if one has internalized the requirement to pay the tithe, and really, truly believes it, it might still act as a tax. One might feel it like a duty to pay, but feel any guilt over not maximizing ones income in order to pay more.

What is your take? There are many religions with tithing requirements including Islam so it ought to be of general economic interest to figure out its effects.

I would model tithing as similar to paying a tax, except that a) the act of payment itself yields utility, and b) there may be a kink at the level of the suggested tithe.  For instance you know that if you pay ten percent, you are respected within the church community.  Paying eleven percent does not get you proportionately more respect, however.  In such a model, tax incidence theory changes.  It would matter which side of the market a tax is levied upon, to give one concrete example.  You don’t just care about “how much the church gets,” you also care about “how much you give to the church,” and with the kink  you’ll try to stay at ten percent whether the supply side or demand side of a donation is taxed.  Thus if there is a tax on the demand side you will give more, but not if your contribution is taxed on the side of the church.

This kind of tithing motives also weakens the crowding out of donations if the government subsidizes the church, for instance.  You’ll stick at ten percent even if the church coffers are overflowing from the subsidy.  Or tax subsidies to giving may not push many people over ten percent, because ten percent suffices to earn most of the respect on tap.

Having been named as Mr Nakamoto once, unconvincingly, Mr Wright has a steep hill to climb to convince the world that he is indeed bitcoin’s founder. Evaluating his claim involves the application of a multi-step paternity test. First comes the factual evidence: can Mr Wright prove that he is in possession of cryptographic keys that only Mr Nakamoto should have? Second, does he have convincing explanations for the holes in the story which came to light when he was first outed in December? Third, does he possess the technical knowledge which would have enabled him to develop a system as complex and clever as bitcoin? And fourth, to what extent does he fit the image that people have of Mr Nakamoto; in particular, what do those software developers who have collaborated online with the founder of bitcoin think of Mr Wright’s claim?

Here is a very good Economist article, I say p = 0.415.  There is some legitimate evidence and some serious endorsers, but the whole thing still doesn’t smell right to me.  You?

Update from my iPad: uh-oh, http://www.economist.com/news/briefings/21698066-onus-on-craig-wright-provide-better-evidence-satoshi-nakamoto?fsrc=scn/tw/te/bl/ed/craigwrightsclaimsunderfire

Monday assorted links

by on May 2, 2016 at 12:03 pm in Uncategorized | Permalink

The heroes of Jaron Lanier

by on May 2, 2016 at 3:39 am in History, Law, Web/Tech | Permalink

There are many, but they include:

  • J.M. Keynes,  he was the first person to think about how to really manage an information system.
  • E.M. Forster for The Machine Stops, written in 1907, which foresees our error with a very critical eye.
  • Alan Turing, who stayed a kind person even as he was tortured to death.
  • Mary Shelley who was a keen observer of people and how they can confuse themselves with technology.

And of course my friend Ted Nelson. He invented the digital media link and was perhaps the most formative figure in the development of online culture. He proposed that instead of copying digital media, we should keep one copy of each cultural expression on a digital network and pay the author of that expression an affordable amount whenever it is accessed. In this way, anyone could earn a living from their creative work.

Here is another interesting bit about the internet:

One thing that bugs me is the way context is lost. You start discovering new music or new culture in very particular ways. Algorithms become your guide. If an algorithm calculates that you may like a piece of music, it will recommend it to you. That makes the algorithm the master of context for humanity. It tends to remove culture from its context, and context is everything. The structure of the Net itself has become the context instead of real people or the real world. That’s a really big deal.

Here is the full piece, an interview with Catherine Jewell at WIPO, I would say that Lanier is or should be rising in relative status.  For the pointer I thank Samir Varma.

For music, at least:

The simultaneous advent of streaming music and the vinyl renaissance has led to some very interesting recording industry statistics over the past few months. Last month, the RIAA reported that vinyl revenues outpaced sales from streaming services, despite actual streams vastly outnumbering physical vinyl sold. Now, Nielsen has released data revealing that, for the first time ever, old music (the “catalog,” defined as music more than 18 months old) outsold new releases in 2015.

It’s important to note that Nielsen’s numbers here don’t include streaming numbers, but that in itself is telling of current trends: an easy-to-draw hypothesis from these stats is that new music exists primarily in the streaming realm, rather than in album downloads or physical copies. And as 2016 has progressed and seen such things as Kanye’s The Life of Pablo shenanigans, exclusive streaming rights, like Rihanna and Beyoncé with Tidal and Drake with Apple Music, and the fact that the Beatles dominated Spotify in their first 100 days on the service, streaming music’s hold on the future seems to be growing tighter.

And note this:

Pink Floyd’s Dark Side of the Moon was the third-best-selling vinyl record of 2015.

I suspect you are not surprised to hear that Prince is dominating the Billboard 200 right now.

The pointer is from Ted Gioia.

I will be doing a Conversation with Tyler with him, June 15, late afternoon, Washington D.C., location to be announced.

So what should I ask?  I already know which is his favorite novel…and plan to ask about that…and of course we will cover his new forthcoming book The World According to Star Wars.

Sunday assorted links

by on May 1, 2016 at 12:40 pm in Uncategorized | Permalink

True or false? A new nuclear power station in the south-west of the UK will be the most expensive object on Earth. That’s the claim about the proposed plant at Hinkley Point in Somerset – but has anything else ever cost so much to build?

“Hinkley is set to be the most expensive object on Earth… best guesses say Hinkley could pass £24bn ($35bn),” said the environmental charity Greenpeace last month as it launched a petition against the project.

…Even if you stick with the expense of construction alone, though, the price is still high – the main contractor, EDF, puts it at £18bn ($26bn).

Here is the story, via Tim Harford.  Being good Austrians, let’s put cost of production aside and focus on potential market value.  Might there be an object which would auction for at least this much, if it were put on the market?  If so, which one?  The Mona Lisa?  A pyramid?  How about St. Peters?  Worth more or less than a nuclear power plant?  The Grand Mosque in Mecca?  The Great Wall of China?

Going back to cost of production, the article also mentions:

But these are all exceeded by the $54bn (£37bn) Gorgon liquefied natural gas plant built by Chevron in Australia.

And (not on earth):

The International Space Station. Price tag: 100bn euros (£77.6bn, or $110bn).

The history of GPS

by on May 1, 2016 at 12:33 am in Books, History, Science, Web/Tech | Permalink

The United States Air Force never really wanted GPS.  The 621B program, the precursor to GPS, was underfunded.  After it evolved into the GPS program in the early 1970s, the Air Force largely neglected it, to the point of disowning it and defunding it.  A few times, it tried to kill its own creation, and GPS was kept alive by the Pentagon’s largesse…

One reason the Air Force was slow to embrace GPS is the space-based projects were never seen as a priority.  “The Air Force is not a big user of space,” says Scott Page..”The Air Force gets to build for space, but the Marine Corps, Army, and Navy are much more reliant on actual space services than the  Air Force itself is.  The budget for space is in the Air Force, but in terms of the number of customers and users, they’re all in the other services.

Another source said “…the Air Force is pilots who fly planes.”

That is from Greg Milner’s new and interesting book Pinpoint: How GPS is Changing Technology, Culture, and Our Minds.

Milner also relates how the park rangers in Death Valley National Park have the term “death by GPS.”  It refers to park users who follow their GPS and then die:

It describes what happens when GPS fails you, not by being wrong, exactly, but often by being too right.  It does such a good job of computing the most direct route from Point A to Point B that it takes you down roads which barely exist, or were used at one time and abandoned, or are not suitable for your car, or which require all kinds of local knowledge that would make you aware that making that turn is bad news.


I very much like this book, it is one of my favorites of the year so far.  It resists being excerpted, as it is an old-style think piece in the style of Montaigne, or for that matter Robert Burton.  Every page is idea-rich and should be read carefully and slowly, and that is rare these days.  Here is just one bit:

Melancholics are prominent…precisely because they are too full of life; because of them, existence overflows itself.  This explains their unappeasable sense of absence: since they have left the world of moderation, overflowing is inconceivable without being emptied.  The universe is damaged in their person; hence, melancholics’ sense of being among the elect, but also their self-hatred to the point of self-annihilation.  That makes them strong and outstanding, but also exceedingly frail.  Their strength is infinite, because they have gained knowledge of the end, but they are unhappy, since having experienced the ephemeral nature of humans, they have lost their trust in existence.  Their strength and frailty, their unhappiness and their heroism, cannot be detached from each other.  This leads us back once again to the starting point of our argument, to the Aristotelian question “Why is it that all those who have become eminent in philosophy or politics or poetry or the arts are clearly melancholic?”

Definitely recommended.

Saturday assorted links

by on April 30, 2016 at 1:03 pm in Uncategorized | Permalink