Yes, the Matt Levine who writes for Bloomberg.  The “the only greeting you need is “Only you can do what you do!”” Matt Levine.

That one (not the other one).  I’ll be having a Conversation with him, so what should I ask?

Did you know by the way that Matt can speak Latin?

Michel Serafinelli and Guido Tabellini have a new paper on that question, here is the abstract:

Creativity is often highly concentrated in time and space, and across different domains. What explains the formation and decay of clusters of creativity? In this paper we match data on thousands of notable individuals born in Europe between the XIth and the XIXth century with historical data on city institutions and population. After documenting several stylized facts, we show that the formation of creative clusters is not preceded by increases in city size. Instead, the emergence of city institutions protecting economic and political freedoms facilitates the attraction and production of creative talent.


1. Fez is perhaps the place in the world with the clearest continuous connections to the time of late antiquity.  Maimonides and Ibn Khaldun worked there, and walking through the medina that is not hard to imagine — you can dine in a small restaurant in the home of Maimonides (recommended, most of all the vegetables).  Fez has the world’s oldest university, dating from the 859, and the world’s oldest continuously operating library, from 1359.

2. The country has been remarkably stable relative to the rest of the region, whether you take that to be the Middle East, MENA, or Africa.  But the nature of the associated stability lessons remains unclear, read more here.

3 Social capital is higher than it was during my last visit twenty years ago.  That said, every transaction is still a potential swindle waiting to happen.  And if any English-speaking Moroccan climbs into your train cabin, and claims his brother is the most wonderful guide in town and offers up his phone number…simply decline any further contact.  Especially if the guy has a scar on his face.

4. From the OEC:

The top exports of Morocco are Cars ($2.95B), Insulated Wire ($2.46B), Mixed Mineral or Chemical Fertilizers ($1.83B), Phosphoric Acid($1.14B) and Non-Knit Women’s Suits ($1B)…

It could be much worse, but the dangers of premature deindustrialization are real.  Their exports are too dependent on Spain and France, two countries with many other trading partners and also relatively slow growth rates.  Agriculture still accounts for 40-45% of employment.  Tourism continues to grow, but service culture in the country is not top-notch.  They export a lot of marijuana too.

5. The country has the (distant) potential to evolve into an Atlantic economy — check the map — and I don’t just mean the history of Rabat/Salé as a pirate state.  Nonetheless the actual trade of the nation paints it as a Mediterranean economy, and most Mediterranean economies have not done very well lately.

6. Moroccans do not seem very religious.  Counterintuitively, that may be why, when they are living in Europe, they are especially vulnerable to radicalization. They are not already “filled up with belief,” and experience anomie, which is then exploited by terror groups.  Arguably the same is true for Uighurs in China, by the way, who are recruited by the thousands for foreign ISIS crusades and the like.

7. More and more of the country’s gdp is concentrating in and near Casablanca, which is underrated as a visit.  The famous Grand mosque, as Yana pointed out, in fact resembles a cavernous mosque-clock tower-opera house-French railway station, with even some elements of a medieval cathedral.  Not all devout Muslims are happy with it.

8. The best bistillah is in Meknes, where it is moister and less sweet.  In Casablanca I recommend the seafood stalls in the Grand Marché, and the roast chicken joints, always with french fries.

Good post.

There are a few other topics that can serve as useful handles to “understand” India.

1. Study the folk history of the popular Indian pilgrimage sites –

For a lot of people, Hinduism is associated with abstruse metaphysics, mysticism, Vedanta, and Yoga. And this obsession with the high falutin theoretical stuff, means that many students of Hinduism don’t pay as much attention to the pop-religion on the ground. And this religion is best understood by actually understanding the few hundred important pilgrimage sites scattered across the country. Each of these sites is ancient and has a “legend” associated with it. (the so-called Sthala Purana). The civilizational unity of India is largely accomplished because of the pan Indian reverence for these pilgrimage sites. Be it Benaras in the North, Kolhapur in the west, Srirangam in the south, or Puri in the East. A nice way to get started on this is Diana Eck’s book – “India – A Sacred Geography” where she makes a strong case for the theory that the idea of one India is one that is primarily stemming out of the pilgrimage experience of Hindus.

This study of pop religion will be messy and frustrating for people from an Abrahamic monotheistic background. But there is no better way to understand what makes Indians tick spiritually, and why every Indian is a millionaire when it comes to Religion.

2. Study of the history of Indian mathematics –

This may seem like an odd handle to understand India. But in my view it is useful, because Indian mathematical tradition that goes back to roughly 700 BCE, is one that is highly empirical, algebraic, and averse to theorizing and rigorous proofs. So it tells you a lot about the Indian mind. Which is very different from the Greek mind, in that it places a very very low premium on “neatness”, and a high premium on “improvisation”.

Unlike the Greeks, Indian mathematics is not that big on geometry. And also not that big on “visualization”. While someone like Euclid leveraged diagrams to make his point, Indian mathematicians like Brahmagupta and Bhaskara I/II, just stated results in 2-line or 4-line verses.

The Indian mathematical tradition is arguably the greatest Indian contribution to human civilization. Particularly the decimal number system, infinite series, and the algebraic orientation in general (markedly different from the Greek emphasis on geometry). The tradition includes Sulba Sutras (700BCE), Aryabhata (400CE), Varahamihira (400CE), Brahmagupta (500-600CE), Bhaskara I (600CE), Bhaskara II (1100-1200 CE), and ofcourse the famed Kerala school of mathematics (14th century). Madhava from the Kerala school approximated Pi to 13 decimal places. In more recent times, the most distinguished mathematical mind is ofcourse Srinivasa Ramanujan, very much a man in the Indian tradition, who disdained proofs and conventional rigor, and instead relied on intuition and heuristics.

3. Study of Indian poetry and music and its emphasis on meter

This is something that is again uniquely Indian – the very very high emphasis on meter. Which is a consequence of the Indian oral tradition and cultural aversion to writing. Which continues to this day. The emphasis on meter and rhyming was partly an aid to memorization and rote learning. And this emphasis begins with the Vedas (the earliest religious literature, preserved orally for some 1500 years before they were written down in the common era) And you see this in Indian poetry and even Indian film music to this day! Bollywood songs are characterized by their metrical style and perfect rhyming, which you don’t always see in western popular music. In that sense, the metrical legacy of the Vedas is still alive in popular culture.

That is from Shrikanthk.

I could just rewrite my post How to understand modern China, but change the examples.  But you can do that mental exercise yourself, and besides it is easier to access information about India in the English language.  So let me try a very specific recommendation for India:

Study Indian textiles and their history

I  found this the single most useful way to get a handle on Indian history, a bit less on contemporary India.  Here’s why:

1. The artistic side of textile history gives you a clear sense of regional differences, and also Islamic influence, or lack thereof.

2.. It focuses your attention rather immediately on the role of women and women’s work, and also how this interacted with industrialization.

3. In the early 18th century, India was a world leader at cloth production, but it lost this position by the early 19th century.  Studying textiles and cloth production offers an excellent window on their major story of economic decline, and how British import penetration, backed by colonialism, contributed to Indian deindustrialization.

4. Relatively poor and neglected regions of India, such as Bihar and Orissa, have a strong presence in Indian folk textile traditions, and you will learn plenty about them.

5. Books on textiles will explain the accompanying information about Indian history in a clearer way than will actual history books about India.

6. People who write books on textiles tend to be both clear and careful I have found, perhaps because they love and collect something delicate.

7. Studying textiles and cloth also brings you right to Gandhi’s “Swadeshi’ movement.

8. Unless your income is really quite modest, you can afford to buy and regularly view some pretty high-quality Indian textiles.  In India I’ve found some excellent pieces for as cheap as $200-$250.

9. Studying textiles also will bring to your attention India’s tribes and indigenous peoples.  And it ties in readily to India’s broader cultural influence throughout Southeast Asia.

10. Textile books have many pretty pictures.

My favorite books on Indian textiles are cited in my discussion of that topic in Creative Destruction: How Globalization is Changing the World’s Cultures.  But it’s more a question of reading a bunch of them, rather than picking out a select few.  Simple, direct searches will get you to where you need to go.

My favorite collection of Indian textiles is in the Victoria & Albert museum in London.  Sadly, I’ve yet to get to the Calico textiles museum in Ahmedabad, though it is very highly regarded.

Merry Christmas!

by on December 25, 2017 at 12:13 am in History, Religion | Permalink

Yes, yes, I know patents are not the right measure, that is what we’ve got:

I exploit historical natural experiments to study how establishing a new college affects local invention. Throughout the nineteenth to the mid-twentieth century, many new colleges were established in the U.S. I use data on the site selection decisions for a subset of these colleges to identify “losing finalist” locations that were strongly considered to become the site of a new college but were ultimately not chosen for reasons that are as good as random assignment. The losing finalists are similar to the winning college counties along observable dimensions. Using the losing finalists as counterfactuals, I find that the establishment of a new college caused 32% more patents per year in college counties relative to the losing finalists. To determine the channels by which colleges increase patenting, I use a novel dataset of college yearbooks and individual-level census data to learn who the additional patents in college counties come from. A college’s alumni account for about 10% of the additional patents, while faculty account for less than 1%. Knowledge spillovers to individuals unaffiliated with the college also account for less than 1% of the additional patents. Migration is the most important channel by which colleges affect local invention, as controlling for county population accounts for 20-40% of the increase in patenting in college counties relative to the losing finalists. The presence of geographic spillovers suggests that colleges do cause an overall net increase in patenting, although I find no evidence that colleges are better at promoting invention than other policies that lead to similar increases in population.

That is from new research by Michael J. Andrews, via the excellent Kevin Lewis.

So says Keith A. Meyers, job candidate from University of Arizona.  I found this to be a startling result, taken from his secondary paper:

During the Cold War the United States detonated hundreds of atomic weapons at the Nevada Test Site. Many of these nuclear tests were conducted above ground and released tremendous amounts of radioactive pollution into the environment. This paper combines a novel dataset measuring annual county level fallout patterns for the continental U.S. with vital statistics records. I find that fallout from nuclear testing led to persistent and substantial increases in overall mortality for large portions of the country. The cumulative number of excess deaths attributable to these tests is comparable to the bombings of Hiroshima and Nagasaki.

Basically he combines mortality estimates with measures of Iodine-131 concentrations in locally produced milk, “to provide a more precise estimate of human exposure to fallout than previous studies.” The most significant effects are in the Great Plains and Central Northwest of America, and “Back-of-the-envelope estimates suggest that fallout from nuclear testing contributed between 340,000 to 460,000 excess deaths from 1951 to 1973.”

His primary job market paper is on damage to agriculture from nuclear testing.

Andy was great, here is the text and audio, here is the introductory summary:

Before writing a single word of his new book Artemis, Andy Weir worked out the economics of a lunar colony. Without the economics, how could the story hew to the hard sci-fi style Weir cornered the market on with The Martian? And, more importantly, how else can Tyler find out much a Cantonese meal would run him on the moon?

In addition to these important questions of lunar economics, Andy and Tyler talk about the technophobic trend in science fiction, private space efforts, seasteading, cryptocurrencies, the value of a human life, the outdated Outer Space Treaty, stories based on rebellion vs. cooperation, Heinlein, Asimov, Weir’s favorite episode of Star Trek, and the formula for finding someone else when stranded on a lonely planet.

My favorite part was this, which Andy answered with no hesitation:

COWEN: What if there were two immortal people, let’s say it’s the two of us, placed on opposite sides of the Earth, an Earth-like planet, and we can wander freely with no constraints but just foot speed. How long does it take us to find each other?

WEIR: Can we collude in advance in any way?

COWEN: No, we cannot.


COWEN: But we know we’re trying to find each other.

WEIR: We know we’re trying to find each other. Well, we should both — but can we have a — are we both rational actors and we —

COWEN: We’re as rational as you and I are; take that as you wish.

WEIR: So, no?



WEIR: I think the best thing to do would be for both of us to pick an arbitrary great circle to walk, around the planet, and leave markings along the way denoting what direction you’re walking. So I would arbitrarily pick a direction to go and I would just go that direction with the intention of circumnavigating the entire globe, and I would walk at maybe half what is a comfortable speed for me. And you would do the same thing. Now, somewhere, our two — in fact, in two points — our great circles will intersect.

COWEN: Right.

WEIR: And when one of us reaches the other one’s, then they start following the markers at full speed, and then you get the guy. Right?

COWEN: And what’s your best guess as to how long that would take?

WEIR: Well, if you pick two points, I’m guessing one of us would have to walk probably about a quarter of the way around the planet before we found the other one’s great circle. And then you’d have to walk again. So in terms of circumnavigation times, it would take you 2x to get all the way around the planet, because my initial plan was you’d walk half-speed. So I’m guessing it would be a quarter of that, so one-half x to get to your great circle, and then a quarter x to find you along your great circle, on average, I’m guessing. So one-half plus a quarter, so .75x. So three-quarters of the time that it would take to circumnavigate the planet.

COWEN: OK, great answer.

WEIR: That’s my guess.

Do read/listen to the whole thing

Due to TV, which shows us “false families,” we overrate the importance of the environmental and underrate the importance of genetics:

But here’s a totally different explanation for popular misconceptions about nature and nurture.  Throughout most of human history, if you knew someone, you usually knew his family as well.  When you grow up in a village, you make friends; and once you make friends, you regularly interact with their relatives.

In the modern world, in contrast, we are much less likely to meet the family.  You almost never meet your co-workers’ families.  And you often barely know the families of your close friends.  Perhaps strangely, most of the families that we “know” well are the fictional families of popular culture.  The Pritchetts.  The Bluths.  The Whites.  The Sopranos.  I’ve spent more time with the Simpson family than every family besides the Caplan family.

So what?  Well, with rare exceptions, the actors who comprise t.v. families aren’t even remotely related.  Do your ancestors come from the same continent?  Then by t.v. logic, you could be brothers – and we’re conditioned not to find the fictional relationships ridiculous.  Furthermore, since drama rests heavily on conflict and contrast, every family member gets a distinctive personality and social niche.  What t.v. family has three studious kids – or three class clowns?  Even a show like Shameless blends full-blown degenerates with nice people to handle damage control.

The result: We have little first-hand familiarity with actual biological families.  But popular culture fosters that illusion that we do.  Most of the biological families that we “know” are in fact adopted all the way down.  The main exception being kids’ roles where two twins play the same role to ease compliance with child labor laws!

That is from Bryan Caplan.

Baseball has dominated the cultural and sporting life of Palau for almost 100 years, which is about four times longer than Palau’s been an independent nation. Over the years, Palauans have shaped the game to fit their island lives. Kids learn to play with bamboo bats and coconut-leaf balls. Pitchers chew betel nut instead of dip. Monsoons rain out not just games and series, but entire seasons of league play. Local traditions of witchcraft have crossed over into the country’s sporting life; even today, it’s not uncommon for accusations of black magic to fly after particularly contentious games. (I’ve been reporting on and off from Palau for seven years, so I’m used to it. THIS pitcher’s dad was a known wizard; THAT team’s manager caught women from an opposing village burning leaves over home base.) Baseball as it’s played in Palau is a decidedly Palauan thing.

But baseball has also shaped Palau. It’s more than a national pastime here. It’s an organizing principle—or, more accurately, a re-organizing principle. Before the 20th century, Palau was a matriarchy. Women controlled most aspects of society, and men were limited to fishing, fighting, and handling village-to-village diplomacy. Then colonial rule brought centralized government—and baseball—to the archipelago. Ever since, these two male-dominated worlds have fed on each other, with Palau’s baseball leagues serving as a kind of farm system for government service. Scores of congressmen, senators, diplomats, and heads of state have passed through Palau’s dugouts on their way to political power.

Here is much more, from David Walker, and here is Wikipedia on Palau.  For the pointer I thank Stephen Jonoes.

There is a new NBER paper on that topic by Òscar Jordà, Katharina Knoll, Dmitry Kuvshinov, Moritz Schularick, and Alan M. Taylor, here is the abstract:

This paper answers fundamental questions that have preoccupied modern economic thought since the 18th century. What is the aggregate real rate of return in the economy? Is it higher than the growth rate of the economy and, if so, by how much? Is there a tendency for returns to fall in the long-run?Which particular assets have the highest long-run returns? We answer these questions on the basis of a new and comprehensive dataset for all major asset classes, including—for the first time—total returns to the largest, but oft ignored, component of household wealth, housing. The annual data on total returns for equity, housing, bonds, and bills cover 16 advanced economies from 1870 to 2015, and our new evidence reveals many new insights and puzzles.

Here is what I learned from the paper itself:

1. Risky assets such as equities and residential real estate average about 7% gains per year in real terms.  Housing outperformed equity before WWII, vice versa after WWII.  In any case it is a puzzle that housing returns are less volatile but about at the same level as equity returns over a broader time span.

2. Equity and housing gains have a relatively low covariance.  Buy both!

3. Equity returns across countries have become increasingly correlated, housing returns not.

4. The return on real safe assets is much more volatile than you might think.

5. The equity premium is volatile too.

6. The authors find support for Piketty’s r > g, except near periods of war.  Furthermore, the gap between r and g does not seem to be correlated with the growth rate of the economy.

I found this to be one of the best and most interesting papers of the year.

I’ve been to Morocco before, but never Fez.  What do you all recommend?

Using a unique data set consisting of the population of fine art auctions from 2000 to 2017 for Western artists, we provide strong empirical evidence for a glass ceiling for female artists. First, we show that female artists are less likely to transition from the primary (gallery) into the secondary (auction) market. This glass ceiling results in a selection mechanism which is manifested in an average premium of 6% for artworks by female artists. Second, this premium is driven by a small number of women located at the top of the market and turns into a discount when we account for the number of artworks sold. The superstar effect, where a small number of individuals absorbs the majority of industry revenues, is amplified for the group of female artists. Third, at the top 0.1% of the market artworks by female artists are traded at a discount of 9%. Moreover, the very top 0.03% of the market, where 41% of the revenues are concentrated, are still entirely off limits for women. Overall, we find two glass ceilings for women pursuing an artistic career. While the first one is located at the starting point of a female artist’s career, the second one can be found at the transition into the superstar league of the market and remains yet impermeable. Our study has wide-reaching implications for industries characterized by a superstar effect and a strong concentration of men relative to women.

That is the abstract of a new paper by Fabian Y.R.P. Bocart, Marina Gertsberg, and Rachel A. J. Pownal, via the excellent Kevin Lewis.

Recently I’ve been enjoying @womensart1, a good way to see interesting artworks that otherwise don’t get so much attention.  And here is my older essay “Why Women Succeed, and Fail, in the Arts.”

Ari emails me:

On a completely different note, if I want to understand modern China what books, articles, etc. should I be reading? Do I start with a textbook? Historical scholarship? Fiction? Is Wikipedia the way to go?

Start by asking someone who understands modern China is my first response!  But since you have failed that test, here are a few pointers:

1. Unless your mental architecture is very different from mine, books about sequences of dynasties are mind-numbing and not readily absorbed.  So you first need some context to fit those pieces into.

2. Here is a wonderful syllabus on Chinese economic history, by Dr. Melanie Meng Xue.  Read it all.  I don’t find most books on China to be very useful.  They may be full of true claims, but the frequency of repetition, across books, tends to be very high.

3. Set up a Twitter/RSS feed to follow China today.  Here are seven excellent sources, more are listed at the end.  Set up a separate Twitter account to follow people who cover China, they are more interesting than those who write on U.S. domestic politics.  After all, this is mankind’s greatest story of the current day.

4. Find an “entry point” into China of independent intrinsic interest to you, be it basketball, artificial intelligence, Chinese opera, whatever.  Follow that area, and don’t bother trying to generalize.  Just have fun.

5. Subscribe to the email newsletter of Bill Bishop.

6. Alternate your interest between stories that make China seem quite normal and stories that imply China is pretty weird.  But what is the right balance of those?  Nobody knows!  Experiment, realizing you don’t have a useful feedback mechanism.  Here are a few China stories I have sampled recently:

The Chinese don’t want us to call it tofu any more.

Beijingers read on average an hour a day.

Chinese man repaints road markings to make his commute quicker.

P.F. Chang to open in Shanghai.  But marketed as an American bistro.

Xi Jinping presses military overhaul, and two generals disappear (NYT), an underreported series of stories, try this one too.

7. Travel to every part of China.  The country has the best food in the world (tied with India), is quite safe, has navigable infrastructure, and you can cross much of the country in a day by high-speed rail.  Outside of Beijing and Shanghai, you might find five-star hotels for less than $100 a night.  Go pre-equipped with multiple VPNs, and figure out the English-Chinese translation programs on your smart phone.  They come in handy and many Chinese are already quite familiar with them.  Learn some street signs, with quizzes.

8. Now go back and study all those dynasties.