That is a long and very interesting post by Dan Wang, it is hard to summarize, here is one tiny excerpt but better to read the whole thing:

2. You don’t need a CS degree to be a developer. This is another valid statement that I don’t think explains behaviors on the margin. Yes, I know plenty of developers who didn’t graduate from college or major in CS. Many who didn’t go to school were able to learn on their own, helped along by the varieties of MOOCs and boot camps designed to get them into industry.

It might be true that being a software developer is the field that least requires a bachelor’s degree with its associated major. Still: Shouldn’t we expect some correlation between study and employment here? That is, shouldn’t having a CS major be considered a helpful path into the industry? It seems to me that most tech recruiters look on CS majors with favor.

Although there are many ways to become a developer, I’d find it surprising if majoring in CS is a perfectly useless way to enter the profession, and so people shun it in favor of other majors.

And this, which runs close to my own thoughts:

Perhaps this is a good time to bring up the idea that the tech sector may be smaller than we think. By a generous definition, 20% of the workers in the Bay Area work in tech. Matt Klein at FT Alphaville calculates that the US software sector is big neither in employment nor in value-added terms. Software may be eating the world, but right now it’s either taking small bites, or we’re not able to measure it well.

Finally, a more meditative, grander question from Peter Thiel: “How big is the tech industry? Is it enough to save all Western Civilization? Enough to save the United States? Enough to save the State of California? I think that it’s large enough to bail out the government workers’ unions in the city of San Francisco.”

Here is Dan’s follow-up tweet on other answers to the puzzle.

That is an unpopular point — with both sides — but it might just well be true.  Here is a newly published study by Robert W. Crandall:

More than a year after a court invalidated its “net neutrality” rules on broadband Internet service providers (ISPs), the Federal Communications Commission (FCC) decided to extend public-utility (Title II) regulation on broadband services. This paper uses traditional event analysis of the movements in the values of major communications and media companies’ equities at key moments in the FCC’s path to this decision to estimate the financial market’s assessment of the likely effects of regulation on ISPs, traditional media companies, and new digital media companies. The results are surprising: the markets penalized only three large cable companies to any extent, and even these effects appear to have been short-lived. The media companies, arguably the intended beneficiaries of the regulations, were unaffected.

That is via the excellent Kevin Lewis.

Is this a good idea?  A whole station devoted to Beatles music and Beatles music-derived products, plus a few early musical inspirations?  I ask as a fan, not a critic.  Based on about a week of listening, here are my impressions:

1. No Beatles songs were better live.  Paul McCartney had a few gems in concert, most notably the 1976 Wings over AmericaMaybe I’m Amazed.”  Oddly, “Magneto and Titanium Man” is also better live, perhaps because it was silly to begin with.

2. There are too many extant versions of “Here Comes the Sun,” though Nina Simone had a good one.

3. Ringo songs from the early 1970s, while you would never listen to them voluntarily, hold up OK in this context.

4. The worst feature of the channel is how they use short bursts of Beatle songs to advertise the channel itself.  To play only the first few chords of “Getting Better” is an abuse of the ear and maltreatment of the art, like seeing Mondrian designs on shopping bags.  Why can’t the station just advertise itself by…playing Beatle and Beatle-derived songs?  In their entirety.

5. The last sequence of “Rain” still seem to me their finest moment.  “Let it Be” remains the most overrated major Beatles song.

6. The early solo songs are what are most welcome to hear, at the margin.

7. The way this station operates doesn’t mesh well with the rest of satellite radio.  No single station on satellite radio is that good, except for the classical music station.  Yet the medium as a whole works because you can always switch to another station, especially with voice activation.  Yet one is reluctant to switch away from the Beatles station.  Even if the current song is bad, you feel something wonderful always might be coming up, and besides most of the songs are pretty short and so they will be over soon.  But if it’s just the Beatles you want to hear, you don’t need satellite radio to achieve that end.  So a funny kind of intransitivity kicks in, and maybe the Beatles satellite radio channel can nudge you away from satellite radio altogether, precisely because it is better than all the other channels, and it thus pushes you away from an approach based on a diverse menu of DJ-driven choice.

8. Would it hurt to play more Dylan, a major influence on the Beatles?

A British prison has become the world’s first to use a new system designed to stop drones flying over perimeter walls to drop contraband into jails.

The device creates a 2,000ft (600m) shield around and above a prison that will detect and deflect the remote-controlled devices.

It uses a series of “disruptors”, which are sensors to jam the drone’s computer, and block its frequency and control protocols. The operator’s screen will go black and the drone will be bounced back to where it came from.

Drones have become a major security problem in Britain’s prisons and are increasingly used to smuggle in drugs, weapons, phones and other valuables.

The new system, called Sky Fence, is being introduced at Les Nicolles prison on Guernsey, where around 20 “disruptors” will be installed on the perimeter and inside.

The Channel Island jail was initially going to install a drone detection system, but went a step further to put in the technology that stops drones in-flight.

Here is the article, via Tyro.  By the way, the newly available BBC TV show, Planet Earth II, is an amazing illustration of the use of drones to track and film nature (that includes us!).

That was then, this is now

by on May 14, 2017 at 2:58 am in Economics, Law, Web/Tech | Permalink

Several of London’s largest banks are looking to stockpile bitcoins in order to pay off cyber criminals who threaten to bring down their critical IT systems.

The virtual currency, which is highly prized by criminal networks because it is difficult to trace, is being acquired by blue chip companies in order to pay ransoms, according to a leading IT expert.

That is from October of last year, via Brian S.  I wonder how much such “precautionary demand” has pushed up the price of Bitcoin?

A California-based lifestyle company has created Smalt (pictured), which is designed to make shaking salt…less strenuous by automating the process of seasoning your food through Amazon’s Alexa smart assistant.

…Users will be able to request that Alexa issues a command to start shaking salt, without the need for any strenuous twisting or grinding.

Here is the article, via the excellent Mark Thorson.

Yes, the Garry Kasparov, here is the link to the podcast and transcript.  We talked about AI, his new book Deep Thinking: Where Machine Intelligence Ends and Human Creativity Begins, why he has become more optimistic, how education will have to adjust to smart software, Russian history and Putin, his favorites in Russian and American literature, Tarkovsky, his favorite city to play chess in, his match against Deep Blue, Ken Rogoff, who are the three most likely challengers to Magnus Carlsen (ranked in order!) and who might win.  Here is one excerpt:

GK: The biggest problem, and I’ve been talking about for quite a while, that we’re still teaching very specific knowledge in the schools. Instead of teaching what, we have to teach how because this knowledge may be redundant 10 years from now. We are preparing kids for the world that will change dramatically. By the way, we already know it will look different. So what’s the point of trying to teach kids at age 10, 11, 12 without recognizing the fact that when they finish college, when they will become adults looking for jobs, the job market will be totally different?


COWEN: …If we look back on centuries of Russian history, do you think there’s something in Russian geography or demographics or geopolitics — what has it been that has led to such unfree outcomes fairly systematically?

Where do you find the roots of tyranny in the history of Russia? Is it a mix of the size of the country, its openness to invasion, its vulnerability, something about being next to a dynamic Europe, on the other side, China? What is it?

KASPAROV: It’s a long, if not endless, theoretical debate based on our interpretation of certain historical events. I’m not convinced with these arguments about some nations being predetermined in their development and alien to the concept of democracy and the rule of law.

The reason I’m quite comfortable with this denial . . . We can move from theory to practice. While we can talk about history and certain influence of historical events to modernity, we can look at the places like Korean Peninsula. The same nation, not even cousins but brothers and sisters, divided in 1950, so that’s, by historical standards, yesterday.


Let’s look at Russia and Ukraine, and let’s look, not at the whole Ukraine, but just at eastern Ukraine. Eastern Ukraine is populated mostly by ethnic Russians. In the former Soviet Union, the borders between republics were very nominal. People could move around, it was not a big deal. Even after the collapse of the Soviet Union, the official state border between Russia and Ukraine was respected, but people still could move around. They didn’t need special visas.

When we look at ethnic Russians born and raised in Kursk and Belgorod on the Russian side and across the border, say in Kharkiv and Dnipropetrovsk on the Ukrainian side, there were people that could be hardly separated anything. They read the same newspaper, Pravda, watched the same television, spoke the very same language, not even accents. But somehow, in 2014, after Putin’s annexation of Crimea and invasion of eastern Ukraine, we saw a huge difference. Most of ethnic Russians in Ukraine signed for the Ukrainian army, fighting against Putin’s invasion, against the same Russians that came from the other side.

It could be a long debate, but I would say that one of the main reasons is that Ukraine experienced in 1994 a gradual transition of power from one president to another after sitting president Leonid Kravchuk lost elections and walked away. Ukrainians somehow got an idea that power is not sacred, and government can come and go, and they can remove it by voting.

And even despite the fact that Ukraine never experienced higher living standards than Russia, people realized that keeping this freedom, keeping this ability to influence their bureaucrats and government through the peaceful process of voting and, if necessary, striking, far more effective than Russia’s “stability” where the same leader could be in charge of the country with his corrupt clique for a long, long time.

On computer chess, I most enjoyed this part of the exchange:

KASPAROV: But I want to finish this because what we discovered in this process . . . I wouldn’t overweight our listeners with all these details. I don’t want just to throw on them the mass information.

COWEN: It’s amazing what people will enjoy, though. You’d be surprised.

Self-recommending!  We cover many other topics as well, again you can read or listen here.

And I strongly advise that you buy and read Garry’s wonderful new book Deep Thinking: Where Machine Intelligence Ends and Human Creativity Begins.

Here is a link to the download and partial transcript, Russ is one of the very best interviewers and of course he is a pioneer in the podcast genre.  Here is one excerpt:

Tyler Cowen: And I think overall academics are among the most complacent of the complacent groups in American society.

Russ Roberts: Fair enough.

There is more…

There is a new and very good paper on that question by Amy Finkelstein, Nathaniel Hendren, and Mark Shepard (pdf).  In reality, the price elasticity of demand for health insurance is quite high, at least among lower-income groups:

How much are low-income individuals willing to pay for health insurance, and what are the implications for insurance markets? Using administrative data from Massachusetts’ subsidized insurance exchange, we exploit discontinuities in the subsidy schedule to estimate willingness to pay and costs of insurance among low-income adults…For at least 70 percent of the low-income eligible population, we find that willingness to pay for insurance is far below the average cost curve – what it would cost insurers to provide coverage to all who would enroll if the premium were set equal to that WTP. Adverse selection exists, despite the presence of the coverage mandate, but is not the driving force behind low take up. We estimate that willingness to pay is only about one-third of own costs; thus even if insurers could offer actuarially fair, type-specific prices, at least 70 percent of the market would be uncovered.

That is from both the abstract and conclusion.  I do understand the ideal of universal coverage, but note this:

For example, we estimate that subsidizing insurer prices by 90% would lead only about three-quarters of potential enrollees to buy insurance.

The somewhat depressing and underexplored implication is that the beneficiaries do not love Obamacare as much as some of you do.  In fact you may remember a result from last year, from the research of Mark Pauly, indicating that “close to half” of households covered by the unsubsidized mandate, by the standards of their own preferences, would prefer not to purchase health insurance.  And that was before some of the recent rounds of premium increases, and overall these new results seem to imply even lower demands for health insurance relative to cash.

Now, I think it is an open question how much “non-paternalism” is the correct moral stance here.  Maybe we should force upon people more health insurance than they would purchase in an adverse selection-free market, because a) they are ill-informed, b) they have children, or c) ex post we still need to take care of them in some way, if indeed their gamble to not purchase insurance turns out badly.

Do, however, note the words of the authors: “We conclude that the size of uncompensated care for low-income populations provides a plausible explanation for their low WTP.”  In other words, many of the poor do not value health insurance nearly as much as many planners feel they ought to, in large part because they are already getting some health care.

In any case, consider a political economy point if nothing else.  If you institute a policy that forces on people more health insurance than they think they wish to buy, do not be shocked if a huckster comes along offering them a supposedly better deal, and gets away with it.

Along related lines, consider also this result:

From the perspective of social welfare, to justify connecting the 5% least dense areas of North Carolina would require each adopting household value high speed wired broadband access at more than $1519 per month.

For the pointers I thank Peter Metrinko and Kevin Lewis.

Here is one reason:

We find that Amazon saves between $0.17 and $0.47 for every 100 mile reduction in the distance of shipping goods worth $30. In the context of its distribution network expansion, this estimate implies that Amazon has reduced its total shipping cost by over 50% and increased its profit margin by between 5 and 14% since 2006. Separately, we demonstrate that prices on Amazon have fallen by approximately 40% over the same period, suggesting that a significant share of the cost savings have been passed on to consumers.

That is from a new NBER working paper by Jean-François Houde, Peter Newberry, and Katja Seim.

What if they can clone your voice?

by on April 28, 2017 at 12:59 am in Film, Web/Tech | Permalink

It’s a Canadian company that specializes in speech synthesis software. They’ve developed software they claim can copy anyone’s voice and make it say anything.

The founders tell me if they can get a high-quality recording of you speaking for just one minute, their software can replicate your voice with very high accuracy.

If they get a recording of you speaking for five minutes, they say it would be difficult to tell the difference between your voice and their computer-generated mimic. That’s where the name Lyrebird comes from: a lyrebird is an Australian bird that’s noted for its mimicry.

Here is the story, as they say solve for the equilibrium…

Confidential business conversations over the telephone might dwindle, and perhaps we will have Peter Cushing and Humphrey Bogart movies for a long time to come.  What else?

For the pointer I thank Michelle Dawson.

The central government told the Supreme Court on Monday that it wants an Aadhaar-like unique identification system for cows to track their movement and prevent inter-state and inter-country smuggling. Adducing a report by a committee appointed by the Union Home Ministry, Solicitor General Ranjit Kumar told a bench led by Chief Justice of India J S Khehar that the Centre has approved the recommendations in principle. The bench posted the matter for detailed hearing on Tuesday.

The committee, headed by a Joint Secretary in the MHA, was constituted after the apex court prodded the government to stop smuggling of cattle, especially through the porous borders with Nepal and Bangladesh. “Each animal (should) be tagged with a unique identification number with proper records of identification details such as age, breed, sex, lactation, height, body, colour, horn type, tail switch, special mark etc,” says the report.

Here is further information, via James Crabtree.

But the revered Icelandic language, seen by many as a source of identity and pride, is being undermined by the widespread use of English, both in the tourism industry and in the voice-controlled artificial intelligence devices coming into vogue.

…A number of factors combine to make the future of the Icelandic language uncertain. Tourism has exploded in recent years, becoming the country’s single biggest employer, and analysts at Arion Bank say that half of new jobs are being filled by foreign workers.

…The problem is compounded because many new computer devices are designed to recognize English but not Icelandic.

“Not being able to speak Icelandic to voice-activated fridges, interactive robots and similar devices would be yet another lost field,” Mr. Jonsson said.

Here is the interesting NYT piece.

Beggars in Jinan in China’s eastern province of Shandong use QR codes, the technology used by Alibaba Group Holding Ltd.’s [NYSE:BABA] Alipay and Tencent Holdings Ltd.’s [HKG:0700] WeChat Wallet, in hopes of getting money transferred to them by passersby with smartphones.

One panhandler in Jinan’s Wangfu Chizi held a basket with a QR code on it, China.org.cn report, citing accounts from internet users.

The basket-bearer reportedly suffers from mental illness and the QR code was given to him by his family. When reporters’ search for him failed, local business owners said that the beggars might not be ‘working’ due to the rain, but are always around when the weather is good.

Residents living in areas frequented by tourists, such as Qushuiting Street and Wangfu Chizi, said that some local beggars use WeChat — and some even have a POS (point of sale) machine.

Here is the link.

Now operators have started scrutinizing complimentary drinks, introducing new technology at bars that track how much someone has gambled—and rewards them accordingly with alcohol. It’s a shift from decades of more-informal interplay between bartenders and gamblers.

Sports books have capitalized on big events, too. During March Madness, a five-person booth at the Harrah’s Las Vegas sports book cost $375 per person, which included five Miller Lite or Coors Light beers a person. In the past, seating at most sports books was free and first-come, first-served, even during big events. Placing a small bet or two could get you free drinks.

“The number-crunchers, the bean-counters have ruined Las Vegas,” said Brad Johnson, who lives in North Carolina and has come to Las Vegas almost every year since the early 1970s. “There’s no value to it; there’s no benefit.”

Casinos on the Strip now derive a smaller share of revenue from gambling. In 1996, more than half of annual casino revenue on the Strip came from gambling. Last year, the share was down to about a third, according to the University of Nevada-Las Vegas. More of the revenue comes from hotels, restaurants and bars.

That is from Chris Kirkham at the WSJ, via Annie Lowrey.