Data Source

Democrats’ trust in government data has shrunk over time; Republicans’ trust has grown. Today, with their party in unified control of government, Republicans are slightly more likely than Democrats to believe official government economic stats; 58 percent of Republicans completely or somewhat trust these numbers, compared with 52 percent of Democrats.

That is from Catherine Rampell.

Using several novel empirical facts from business microdata, we infer that the pervasive post-2000 decline in reallocation reflects weaker responsiveness in a manner consistent with rising adjustment frictions and not lower dispersion of shocks. The within-industry dispersion of TFP and output per worker has risen, while the marginal responsiveness of employment growth to business-level productivity has weakened. The responsiveness in the post-2000 period for young firms in the high-tech sector is only about half (in manufacturing) to two thirds (economy wide) of the peak in the 1990s. Counterfactuals show that weakening productivity responsiveness since 2000 accounts for a significant drag on aggregate productivity.

That is from Ryan A. Decker, John C. Haltiwanger, Ron S. Jarmin, and Javier Miranda.

[NBA star John] Wall is shooting 42 percent, his lowest mark since he was a rookie, and he just hasn’t played with enough vigor on either end of the floor. One measure of that: He has spent 76.57 percent of floor time either standing still or walking, the largest such share among all rotation players, according to tracking data from Second Spectrum. Dirk Nowitzki is right behind Wall, and he’s almost 40.

That is from Zack Lowe at ESPN.  By the way, Wall was just named to the NBA All-Star team.

Based on a dynamic decomposition framework, we show that the fraction of gender inequality caused by child penalties has increased dramatically over time, from about 40% in 1980 to about 80% in 2013.

The underlying paper is by Henrik Kleven, Camille Landais, and Jakob Egholt Søgaard.

From Daniel S. Hamermesh:

Using Current Population Survey data, I demonstrate a 15-percentage point wage disadvantage among academics compared to all other doctorate-holders with the same demographics. Time-diary data show that academics’ work hours are distributed more evenly over the week and day, although their total workweeks are equally long. This smoother distribution of work time accounts for as much as one-third of the wage disadvantage. Survey data (of economists only) indicate that flexible scheduling is an attraction, but only fourth among the characteristics of academic life.

Hamermesh then speculates the remaining difference may result from selection, namely that some people enjoy being less accountable to their superiors than do others.

Washington also seems to be full of economists. We have 10 economists for every one member of the clergy, whereas in New York City there are 15 members of the clergy for every economist.

D.C. is the only major metropolitan area with more economists than clergy.  The Miami area is the one with the highest ratio of chefs to economists.  Here is the source, via Paul Winfree.

Into the United States that is:

Overall, the relationship is strong and positive (r = .56, p < 0.001): immigrant groups that are more skill-selected tend to have higher average incomes. The five most skill-selected groups are: Taiwanese, Nigerians, Swedes, Indians and Swiss. The five least skill-selected groups are: Mexicans, Salvadorans, Hondurans, Portuguese and Cape Verdeans. For example, 82% of Nigerians are high-skilled, while only 4% are low-skilled. By contrast, only 14% of Mexicans are high-skilled, while 57% are low-skilled.

Methodological caveats: I was unable to match a number of the ancestry groups (e.g., ‘Hmong’, ‘Jewish’, ‘Cajun’); the income data are not adjusted for household size or reporting bias.

That is from Noah Carl, here are his other essays.  For the pointer I thank Dan Klein.

Compensation for the heads of some elite private K-12 schools in New York City is nearing $1 million.

Much in the city’s private school world can seem beyond the norm: the tuition and fees (topping $50,000 a year), the kindergarten application process (interviews for 4-year-olds), the facilities (climbing walls). And so too executive compensation that exceeds the pay of many college presidents.

Pay packages often include deferred compensation and perks like housing, housekeeping, social club dues and free tuition for heads’ children. Chiefs of New York City schools earn far more than the national average, due to the high cost of living, ambitious fundraising duties, competition for talent, relatively large enrollments and other factors, according to the National Association of Independent Schools.

The median base salary for heads of the city’s private schools is $493,478 this academic year among 44 city schools in a survey by the association. That compares to $275,000 nationwide. The group says the city’s pay for heads grew faster as well: Its median salary jumped 70% in a decade, compared with 45% nationwide.

At least nine heads of private K-12 schools in New York City earned total yearly packages topping $800,000, according to 2015 federal tax forms, the most recent year available.

Here is the WSJ piece, via the excellent Samir Varma.

In 2016, the island nation’s police reported 135 total days without any crimes including snatch-theft, house break-ins and robbery. That low crime rate means many small businesses enjoy little concern about shoplifting.

In fact, as CNBC recently observed, many local businesses take few precautions when closing shop at night.

For instance, in the ground floor lobby of a mixed-use building in the downtown business district, many shops don’t have windows, locks — or even doors.

Here is the full story.

This study compared perpetrators of seven mass killings during 2013–2017 with more than 600 celebrities over the same time period. Findings indicate that the mass killers received approximately $75 million in media coverage value, and that for extended periods following their attacks they received more coverage than professional athletes and only slightly less than television and film stars. In addition, during their attack months, some mass killers received more highly valued coverage than some of the most famous American celebrities, including Kim Kardashian, Brad Pitt, Tom Cruise, Johnny Depp, and Jennifer Aniston. Finally, most mass killers received more coverage from newspapers and broadcast/cable news than the public interest they generated through online searches and Twitter seems to warrant. Unfortunately, this media attention constitutes free advertising for mass killers that may increase the likelihood of copycats.

That is from an Adam Lankford paper, via Rolf Degen.

Yes, it would seem.  The subtitle is “The Effect of Medical Marijuana Laws on US Crime,” the authors are Evelina Gavrilova, Takuma Kamada, and Floris Zoutman, and the outlet is The Economic Journal.  Here is the abstract:

We show that the introduction of medical marijuana laws (MMLs) leads to a decrease in violent crime in states that border Mexico. The reduction in crime is strongest for counties close to the border (less than 350 kilometres) and for crimes that relate to drug trafficking. In addition, we find that MMLs in inland states lead to a reduction in crime in the nearest border state. Our results are consistent with the theory that decriminalisation of the production and distribution of marijuana leads to a reduction in violent crime in markets that are traditionally controlled by Mexican drug trafficking organisations.

Here is the link to the paper, here are earlier versions.  For the pointer I thank Peter Metrinko.  That said, I learn from Kevin Lewis that the high school graduate rate goes down.

Claims about Bitcoin

by on January 14, 2018 at 3:22 pm in Data Source, Economics | Permalink

A single actor likely drove the USD/BTC exchange rate from $150 to $1000 in 2 months.

That is from the JME, via the excellent Kevin Lewis.  It is worth noting that the single actor was right!

The World Bank repeatedly changed the methodology of one of its flagship economic reports over several years in ways it now says were unfair and misleading.

The World Bank’s chief economist, Paul Romer, told The Wall Street Journal on Friday he would correct and recalculate national rankings of business competitiveness in the report called “Doing Business” going back at least four years.

The revisions could be particularly relevant to Chile, whose standings in the rankings have been especially volatile in recent years and potentially tainted by the political motivations of World Bank staff, Mr. Romer said.

…Over time, World Bank staff put a heavy thumb on the scales of its report by repeatedly changing the methodology that was used to calculate the country rankings, Mr. Romer said.

The focus of the World Bank’s corrections will be changes that had the effect of sharply penalizing the ranking of Chile under the most recent term of Chile’s outgoing president, Michelle Bachelet.

“I want to make a personal apology to Chile, and to any other country where we conveyed the wrong impression,” Mr. Romer said. The problems with the report, he said, were “my fault because we did not make things clear enough.”

That is by Josh Zumbrun and Ian Talley at the (gated) WSJ.

That is the topic of my latest Bloomberg column, here is one bit:

Or consider Nigerian-Americans, Nigeria being the most populous nation in Africa. Their education levels are among the very highest in the U.S., above those of Asians, with 17 percent of Nigerian migrants having a master’s degree.

And:

Economist Edward Lazear suggests a simple experiment. Consider immigrants to the U.S. from Algeria, Israel and Japan, and rank them in order of most educated to least educated. The correct answer is Algeria, Israel then Japan. Although that’s counterintuitive at first glance, it’s easy enough to see how it works. If you are Algerian and educated, or aspire to be educated, your prospects in Algeria are relatively poor and you may seek to leave. A talented, educated person in Japan or Israel can do just fine by staying at home. These kinds of considerations explain about 73 percent of the variation in the educational outcomes of migrants.

Do read the whole thing.

Maybe not, as I argue in my latest Bloomberg column:

The numbers instead indicate that lobbying hurts the underlying capital values of the corporations. Lobbying doesn’t increase the chance that favored bills are passed by Congress, and it isn’t associated with the company receiving more government contracts.

Those are the key results from a new study by Zhiyan Cao, Guy D. Fernando, Arindam Tripathy and Arun Upadhyay, published in the Journal of Corporate Finance and considering 1,500 S&P companies over the period 1998 to 2016. Neither spending money at all on lobbying nor spending more money on lobbying over those years seem to help companies, and for that matter contributions to political action committees don’t work either.

And:

If corporate lobbying is an unprofitable use of money, why does it happen? One possibility is that corporate leaders are using company resources to indulge their own ideological preferences. Other researchers have found that companies with weaker governance and more entrenched management are those more likely to spend on lobbying. This study finds that lobbying expenditures are higher when the percentage of CEO perks is higher and when the board of the company is larger.

It’s also possible lobbyists are ripping off companies with slick sales pitches, or that incompetent CEOs are spending money on lobbying so they seem to be doing something constructive.

Do read the whole thing, I also consider under what kind of hypothesis the lobbying actually might be paying off.