Assorted links

by on August 18, 2014 at 12:41 pm in Uncategorized | Permalink

1. Are forward interest rates outrageously low?  Evan Soltas considers whether “secular stagnation” fits the data.

2. Pictures of Chinese acrobatics.

3. Did capital controls help during the Great Depression?

4. The real problem with Big Data?

5. The entire Loeb Classical Library is now on-line.

6. How segregated is Ferguson?  And changes in Ferguson poverty rates.

7. Some new results on whether having a daughter shifts a person’s political orientation.  And free to choose (the culture that is India)?

In a great paper, The Impact of Jury Race in Criminal Trials, Shamena Anwar, Patrick Bayer and Randi Hjalmarsson exploit random variation in the jury pool to estimate the effect of race on criminal trials. The authors have data from nearly 800 trials in two Florida counties. On any given day, a jury pool is randomly drawn from a master list based on driver’s licenses. On some days, the pool of about 30 people contains some black members and on other days, purely for random reasons, it does not. The voir dire process–>For every $1 spent on legal aid, the savings can range from $1.60 to $30.removals, excuses and challenges–whittles down the jury pool to 6 jury members with typically 1 alternate.

The authors have data on the race, gender, and age of each member of the jury pool as well as each member of the ultimate jury. The authors also know the race and gender of the defendant and the charges. What the authors discover is that all white juries are 16% more likely to convict black defendants than white defendants but the presence of just a single black person in the jury pool equalizes conviction rates by race. The effect is large and remarkably it occurs even when the black person is not picked for the jury. The latter may not seem possible but the authors develop an elegant model of voir dire that shows how using up a veto on a black member of the pool shifts the characteristics of remaining pool members from which the lawyers must pick; that is, a diverse jury pool can make for a more “ideologically” balanced jury even when the jury is not racially balanced.

The author’s results show not only that blacks and whites are treated differently depending on the composition of the jury pool but also that random variation in the jury pool adds to the variability of sentences holding race constant. Like is not treated as like. The results also suggest that we don’t need racial quotas to increase fairness. We can increase fairness and reduce variability in a racially neutrally way by expanding the size of juries. Six-person juries have become common because they are cheap(er) but a return to twelve person juries would reduce the variability of sentences and greatly equalize conviction rates across race.

How much does an EU cow earn?

by on August 18, 2014 at 2:51 am in Economics, Uncategorized | Permalink

This is an old link, from an old blog post, but I believe I missed it the first time around:

A typical cow in the European Union receives a government subsidy of $2.20 a day. The cow earns more than 1.2 billion of the world’s poorest people.

That is from Mark Perry, citing an Australian minister, via Garett Jones on Twitter.  Despite being in the midst of an unprecedented economic crisis, I don’t think these subsidies have changed much in the interim.

Addendum: It may be up to $2.60 a day.

Here is one bit:

 The combination of low inflation and low growth means that it is the evolution of nominal GDP that really matters now. Nominal GDP is non inflation corrected GDP (or GDP at current rather than constant prices). If inflation remains low or even becomes negative, then nominal GDP will hardly increase and may even continue to contract (as has happened in Japan). The result is bound to be that the gross government debt to GDP ratio rises above the 135.6% it hit in March.

One of the arguments frequently advanced about how this dynamic could be turned around would be for Italy to run a “large” primary budget surplus. Now the emphasis here is on large since the country has in fact run a primary surplus (income – expenditure before paying debt interest) since the early 1990s, but that hasn’t stopped the weight of the debt climbing and climbing.

The full post is here, scary throughout.

A Job is an Exchange

by on August 17, 2014 at 4:57 pm in Economics | Permalink

I love Natasha Singer’s parenthetical in her excellent NYTimes article about job exchanges like Uber, Lyft and Task Rabbit.

“These are not jobs, jobs that have any future, jobs that have the possibility of upgrading; this is contingent, arbitrary work,” says Stanley Aronowitz, director of the Center for the Study of Culture, Technology and Work at the Graduate Center of the City University of New York. “It might as well be called wage slavery in which all the cards are held, mediated by technology, by the employer, whether it is the intermediary company or the customer.”

(Disclosure: For two weeks in the summer of 1988, I had a gig as the au pair for Professor Aronowitz’s daughter, then a toddler.)

There is a semi-new paper (pdf) by Youjin Hahn, Liang Choon Wang, and Hee-Seung Yang, the abstract is this:

We show that private high school students outperform public high school students in Seoul, South Korea, where secondary school students are randomly assigned into schools within school districts. Both private and public schools in Seoul must admit students randomly assigned to them, charge the same fees, and use the same curricula under the so-called equalization policy’, but private schools enjoy greater autonomy in hiring and other staffing decisions and their principals and teachers face stronger incentives to deliver good students’ performance. Our findings suggest that providing schools greater autonomy in their personnel and resource allocation decisions while keeping school principals accountable can be effective in improving students’ outcomes.

That is from G Heller Sahlgren, who has numerous tweets of interest on Korean schooling.

Assorted links

by on August 17, 2014 at 12:28 pm in Uncategorized | Permalink

1. How we would cover Ferguson if it happened in another country.

2. Hitchhiking robot travels across Canada.

3. Archeologists use drones.

4. Charles C. Mann on how to talk about climate change.

5. What Swans can do.  “I never overcame.  I incorporated.

6. Nudging drivers into lower speeds.

Down on the farm?

by on August 17, 2014 at 8:27 am in Economics, Uncategorized | Permalink

Farming businesses in the United States are still dominated by whites, but Mr. Flores (whose last name means “flowers” in English) is one of a growing number of Latinos who own or operate farms in the country. While the overall number of farms in the United States decreased by 4 percent from 2007 to 2012, during the same period the number of farms run by Hispanics increased by 21 percent to 67,000 from 55,570, according to data released in May from the government’s 2012 census of agriculture. The numbers signaled a small but consistent pattern of growth in agribusiness among Latinos, many of whom have gone from working in the fields to sitting in the head offices.

Many, like Mr. Flores, emigrated from Mexico in the 1970s and ’80s and worked their way up from picking produce to managing the business. They have classic American bootstrap stories of grit, determination and a little bit of luck. Some own the land they till while others rent. Many employ Mexicans whose language and job duties they understand intimately.

That is from Tanzina Vega, there is more here.

A North Carolina diner that offers discounts to praying customers has ignited an internet firestorm across the US.

For the past four years, Mary’s Gourmet Restaurant in Winston-Salem, North Carolina, had been surprising customers with a 15% discount if they prayed or meditated before meals.

“It could be anything – just taking a moment to push away the world,” says Mary Haglund, the owner. “I never asked anyone who they were praying to – that would be silly. I just recognised it as an act of gratitude.”

However, it wasn’t until customer Jordan Smith shared her receipt with a Christian radio station on 30 July that the diner and its discount went viral.

“There was no signage anywhere that promoted the prayer discount. We just ordered our food and prayed over it once it arrived,” says Smith. “It wasn’t until the end when they brought the bill over and it said 15% discount for praying in public.”

The story is here, and for the pointer I thank Felix Morency-Lavoie.  By the way, the discount may violate the 1965 Civil Rights Act.

Dying on payday

by on August 16, 2014 at 4:22 pm in Economics | Permalink

And this is from the relatively egalitarian Sweden:

In this paper, we study the short-run effect of salary receipt on mortality among Swedish public sector employees. By exploiting variation in pay-days across work-places, we completely control for mortality patterns related to, for example, public holidays and other special days or events coinciding with paydays and for general within-month and within-week mortality patterns. We find a dramatic increase in mortality on the day salaries arrive. The increase is especially pronounced for younger workers and for deaths due to activity-related causes such as heart conditions and strokes. Additionally, the effect is entirely driven by an increase in mortality among low income individuals, who are more likely to experience liquidity constraints. All things considered, our results suggest that an increase in general economic activity upon salary receipt is an important cause of the excess mortality.

The authors are Elvira Andersson, Petter Lundborg, and Johan Vikström, the pdf is here, hat tip goes to Ben Southwood.

Cochabamba bleg

by on August 16, 2014 at 1:27 pm in Food and Drink, Travel | Permalink

Thank you all for the Santa Cruz tips.  I’ll also be in Cochabamba, and so I request your advice for that destination too.  Bolivia is one of the world’s most underrated travel spots, so if you haven’t already gone you should start thinking about such a trip.

Facts about food

by on August 16, 2014 at 5:44 am in Books, Economics, Food and Drink | Permalink

Stanford’s Dan Jurafsky has written a book doing just that. In The Language of Food: A Linguist Reads the Menu, Jurafsky describes how he and some colleagues analyzed a database of 6,500 restaurant menus describing 650,000 dishes from across the U.S. Among their findings: fancy restaurants, not surprisingly, use fancier—and longer—words than cheaper restaurants do (think accompaniments and decaffeinated coffee, not sides and decaf). Jurafsky writes that “every increase of one letter in the average length of words describing a dish is associated with an increase of 69 cents in the price of that dish.” Compared with inexpensive restaurants, the expensive ones are “three times less likely to talk about the diner’s choice” (your way, etc.) and “seven times more likely to talk about the chef’s choice.”

Lower-priced restaurants, meanwhile, rely on “linguistic fillers”: subjective words like delicious, flaky, and fluffy. These are the empty calories of menus, less indicative of flavor than of low prices. Cheaper establishments also use terms like ripe and fresh, which Jurafsky calls “status anxiety” words. Thomas Keller’s Per Se, after all, would never use fresh—that much is taken for granted—but Subway would. Per Se does, however, engage in the trendy habit of adding provenance to descriptions of ingredients (Island Creek oysters, Frog Hollow’s peaches). According to Jurafsky, very expensive restaurants “mention the origins of the food more than 15 times as often as inexpensive restaurants.

There is more here, you can pre-order the book here.  My previous posts about this work are here.

…as it turns out, some hydrants seem to be more tempting — and more costly — than others.

In Toronto, one hydrant stands above the rest. People are fined so often for parking in front of it that on Google’s Street View, a white Toyota can be seen with a yellow slip under its wiper blade as a parking-enforcement officer walks away.

Since 2008, cars that parked too close to the hydrant at 393 University Ave. have been ticketed 2,962 times. Those fines add up to $289,620 —more than any other hydrant in the city.

More generally:

A Canadian Press analysis of Toronto’s parking-ticket data found the city has collected more than $24 million since 2008 by fining people who parked too close to hydrants.

Fabrizi says all parking fines, including those from parking next to hydrants, add up to $80 million a year.

That may seem like a big number, but Fabrizi says it only represents about one per cent of the money needed to run all of the city’s programs.

“The amount of revenue that parking generates is so minuscule compared to the overall revenue that it really doesn’t serve a great purpose as a revenue generator.”

About half the revenue from parking tickets pays for parking enforcement and operations, he added.

The full article, which also lists the ten most lucrative Toronto hydrants, is here.  For the pointer I thank Michelle Dawson.

How to look smart?

by on August 15, 2014 at 1:27 pm in Games, Philosophy | Permalink

Perhaps these results are speculative all around, but I am happy to report them for your consideration:

Another strategy identified by the survey, wearing glasses, appears to be surprisingly effective. Figures released in 2011 by the College of Optometrists, in the U.K., show that 43 percent of the people it surveyed believe glasses make a person look more intelligent.

But you may not need glasses if you’re beautiful. A Czech study found that certain facial features—narrow faces, long noses, and thin chins—correlated with both perceived intelligence and attractiveness. Interestingly, men who were considered smart-looking actually tended to have higher IQs; the same was not true for women.

Other ways to signal intelligence without opening your mouth include walking at the same pace as those around you. Subjects in one study rated a person moving faster or slower than “normal human walking speed” as less competent and intelligent. Speaking of incompetence: don’t drink in public, at least not at work functions. The perceived association between alcohol and stupid behavior is so strong, according to a 2013 study, that merely holding a beer makes you appear dumber.

How you write matters, too—particularly how you write your name. Middle initials apparently lend a person a certain cachet. Participants in a study published this year rated writing samples more favorably when the author’s name included a middle initial; they also presumed people with middle initials to be of higher social status than their uninitialed peers. Typing your initial in the Comic Sans font, though, could ruin the whole thing: a Princeton researcher found that a hard-to-read font made an author seem dumber, while a clean, simple typeface (Times New Roman, in the study) made him or her seem more intelligent.

The same researcher also looked at how using big words (a classic strategy for impressing others) affects perceived intelligence. Counterintuitively, grandiose vocabulary diminished participants’ impressions of authors’ cerebral capacity. Put another way: simpler writing seems smarter.

The full link is here, with footnotes and sourcing, hat tip goes to Catherine Rampell.

Assorted links

by on August 15, 2014 at 12:16 pm in Uncategorized | Permalink

1. In Japan the telegram is alive and well.  And The Ultimate Stimulus.

2. Is animal hybridization increasing?

3. Swarm of one thousand robots.

4. Greece is creating some new Greek ruins, and pretty quickly.

5. New eBook on secular stagnation.

6. FT lunch with Raghu Rajan.