Month: October 2018

Is innovation democracy’s unique advantage?

I say yes, though I don’t think it is easy to prove.  Here is part of the abstract, from Rui Tang and Shiping Tang:

We contend that the channel of liberty‐to‐innovation is the most critical channel in which democracy holds a unique advantage over autocracy in promoting growth, especially during the stage of growth via innovation. Our theory thus predicts that democracy holds a positive but indirect effect upon growth via the channel of liberty‐to‐innovation, conditioned by the level of economic development. We then present quantitative evidence for our theory.

Via the excellent Kevin Lewis.

Nashville notes

I strongly recommend eating at Husk (get the vegetables plate) and Chauhan Ale and Masala House (the Indian-Mexican fusion version of a chile relleno is one of the best courses I have had all year).  Station Inn is good (and comfortable) for bluegrass music, visit Fisk University, Helen’s Hot Chicken serves spicy fried chicken without the tourists or the lines, and the east side of town has some funky shops and boutiques.

Grand Ole Opry is a well-oiled machine, but it makes country music feel old and bankrupt.  The famous strip on Broadway, with the noisy bars, music shows, and restaurants, might as well be hell, but it offers the great joy of being able to leave it.  The “Gulch” part of town is presented as cool, but it’s really just a few boring shops in a homogenized setting.

Nonetheless I now think of Nashville as one of the most successful cities in the South — remarkably few neighborhoods are run down and dumpy, and the residents seem happy.  There is new construction all over, plenty of health care facilities, and Vanderbilt is a quality university.

What might be the most successful southern cities, circa 2018?

— Atlanta

— Richmond

— Nashville

— Bentonville

— the NC Research Triangle deserves mention, even though neither Durham nor Chapel Hill is well-developed enough to make this list (why is that?).

— Maybe the boring Charlotte?

— p.s. Miami is not the south.

What do the success stories have in common?  Other than not being Memphis?

Sunday assorted links

1. Topos House.

2. China’s hypersonic nuclear aircraft can go Mach 10.

3. “But polling showed that after the #EleNão protests, Bolsonaro’s support among women actually rose.

4. “Outfitted in a flak jacket and fighting gloves, Enrique Tarrio was one of dozens of black, Latino, and Asian men who marched alongside white supremacists in Portland on Aug. 4.”  Do of course read this article through a “gender lens.”

5. “As Suburban Women Turn to Democrats, Many Suburban Men Stand With Trump.” (NYT)

Who is a conservative?

From Maxim Gorky’s My Universities:

And I remembered Ibsen’s lines:

“Am I a conservative? Oh, no?

I am still the same as I have been all my life,

I don’t like moving the pieces from one square to another,

I would like to move the whole game.

I can remember only one revolution

It was more clever than those that came after

And it could have destroyed everything

— I mean, of course, the Flood”

Solve for the candidate quality polarized equilibrium

Consistent with the predictions of this model, we also show that, in more conservative states, low quality conservative candidates do better relative to high quality conservatives, and vice versa.

And this:

We also show that voter beliefs about the candidates harden over the course of the primary…

That is from George Deltas and Matthias Polborn on SSRN.  Via Kevin Lewis.

Pareto Principles in Infinite Ethics

I’ve been reading the dissertation of that title by Amanda Askell, following her podcast with Robert Wiblin.  And there is also the work of Nick Bostrom on “infinite ethics.”

In the thesis, Amanda considers the possibility that world-states might simply be incomparable when there are an infinite number of relevant beings and infinite total utility in the universe, as seems to be implied by some cosmologies.

That in turn conflicts with the notion that agents are “locations of goodness.”  If you give me some chocolate ice cream, it seems I am better off, and that judgment ought to be allowed to proceed without undue attention being paid to the broader cosmos.  Yet that will imply pairwise comparisons are possible in an infinite universe, if only through the Pareto principle.  But when you compare two overall states of the (infinite) universe in pairwise fashion, it is hard to see what value the “new” ice cream cone brings, because both ex ante and ex post there is an infinite consumption of ice cream.

Maybe the view that agents are locations of goodness doesn’t make sense when paired with infinities.  Might the apparent increase in ice cream mean — whether in some causal sense or not — that still the total number of ice cream-eating beings in the universe has not increased, because if it had the infinity would not have held in the first place?  Metaphysically speaking, one ice cream might push out the other.  Sadly, my (finite) mind cannot readily deal with the intuitions, nor what happens if you try to imagine what kind of infinities we are dealing with, a’la Cantor.

Still, I will gladly accept the assumption of incomparability across different world-states in an infinite universe.  In fact I view incomparability in the infinite universe case as the friend of comparability in the world we live in.  It is by no means certain that the universe is infinite, but there is some chance it is infinite.

When doing expected value calculations, we need to take account of both possibilitites, namely that the universe may or may not be infinite.  But if the infinity scenarios all lead to incomparability across various options (if indeed they are “options” to begin with), you can argue that the calculations for the finite universe scenario dominate the final calculus that we face today, operating under agnosticism about the nature of the universe (infinite or not).  Which brings us back to finite universe ethics and persons being locations of value.  And chocolate ice cream.

Another way to put this is that worrying about infinities “too much” ends up meaning you don’t have to worry about them at all.

Saturday assorted links

1. A Progressive rebelling against the Supreme Court.  And another such piece.

2. Man run over by lawn mower while trying to kill his son with a chain saw.

3. Interview with Javier Marías.

4. Racial bias in bail decisions.

5. The dispute over Germany’s Humboldt Forum (NYT).

6. “BASE plans to hire an actress to mimic Amy Winehouse’s stage movements and “will complete the image with prosthetics and computer-generated imagery…”

7. Robots to talk back to your telemarketers.

The Effect of Communism on People’s Attitudes Toward Immigration

Does living in a communist regime make a person more concerned about immigration? This paper argues conceptually and demonstrates empirically that people’s attitudes toward immigration are affected by their country’s politico-economic legacy. Exploiting a quasi-natural experiment arising from the historic division of Germany into East and West, I show that former East Germans, because of their exposure to communism, are notably more likely to be very concerned about immigration than former West Germans. Opposite of what existing literature finds, higher educational attainment in East Germany actually increases concerns. Further, I find that the effect of living in East Germany is driven by former East Germans who were born during, and not before, the communist rule and that differences in attitudes persist even after Germany’s reunification. People’s trust in strangers and contact with foreigners represent two salient channels through which communism affects people’s preferences toward immigration.

That is from Matthew Karl at the Board of Governors, via the excellent Kevin Lewis.

We Cannot Avoid the Ugly Tradeoffs of Bail Reform

Many people think that “innocent until proven guilty” implies that everyone should be let loose on their own recognizance before trial. A moment’s thought reveals that this is idiotic. The white supremacist Dylann Roof killed nine people on June 17, 2015 at the Emanuel African Methodist Episcopal Church. His image was captured on security cameras and he was arrested the next day. Roof’s trial, however, didn’t start until more than a year later, December 7, 2016, and he wasn’t convicted of anything until December 15, 2016. Should Roof have been released before trial because he was “innocent until proven guilty”? Of course not. I stand second to none in demanding high standards before the state can deprive a person of their liberty but high standards do not demand binary divisions. Tradeoffs are everywhere and when the evidence against the accused is strong and the danger to the public is high, it’s not unreasonable to deprive the legally innocent of some liberty prior to trial. The tradeoffs are ugly, as they always are when trading off two sacred values, but the tradeoffs cannot be avoided.

Consider now the issue of bail reform. In the days when the default was that every accused person was held before trial, the idea of money bail was seen as a liberal, progressive measure that allowed more people to get out of jail. Today the natural default is seen as release until trial and bail is therefore perceived as a conservative, regressive measure that unjustly and unfairly keep poor people in jail. As a result, reformers are trying to reduce or eliminate money bail but they are doing so without thought for the ugly tradeoffs.

The bail reformers frame the issue in a way that I think is misleading. Anytime someone can’t pay for bail they call that “unaffordable bail”. Well that’s literally true but it also gives an incorrect impression of destitute people being denied their freedom because they don’t have a buck. To be sure that does happen but here’s an open secret of the judicial process. Judges sometimes set bail expecting and indeed hoping that it won’t be affordable. Everyone knows this but the bail reformers don’t like to acknowledge it because it brings up the ugly tradeoffs. Consider the following, from Chicago, where the bail reform movement is very active:

…there are about 2,700 people being held in jail because they can’t afford bail but [the Chicago court official noted] 87 percent had a current violent or weapons-related charge, a risk assessment recommending “maximum conditions” if released, an assessment flagging them for violence, and/or an active probation or parole case.

In other words, the judges set a high bail amount for a reason. Under orders from the Chief Judge, however, Chicago has been trying to reduce bail:

Chicago and its surrounding county was supposed to be a beacon of bail reform. After Cook County Chief Judge Timothy C. Evans imposed new rules and made sweeping changes to the bench, advocates hoped that virtually no one would be jailed because they didn’t have the money to make bail.

…At first, it seemed to have the intended effect: In the first month after the order, the number of people who had to post money bonds dropped by more than half, while the number of people who were released on their own recognizance—allowed to leave upon promising to return for trial—doubled. Bail amounts also decreased, as did the number of people in jail.

So what happened when bail reform met reality? Under the new system, judges that set a lot of “unaffordable” bail looked bad but most of the people who can’t pay their bail can’t pay not because they are especially poor but because the judge thought that they were a danger to the public. Judges continue to believe that many defendants are dangerous but now rather than setting bail they simply deny bail altogether. In fact, under the new system the rate of denying bail has risen fourfold. In addition, judges soon discovered that the cost of releasing defendants in terms of crime, failure to appear, and perhaps bad publicity was too high so they started to ignore the demands of the Chief Judge.

…But a year later, [the Coalition to End Money Bond] found that not only are judges still setting bail amounts that defendants can’t afford—meaning that more than 2,700 people are in Cook County Jail because they don’t have enough money [recall these are the 2,700 with serious records, AT] —but that things are getting worse. The initial gains “have steadily evaporated and bond court outcomes are now approaching pre-Order levels,” the report states. The authors note that if judges were sticking to the order, there would be no bail amounts set at levels that defendants can’t afford; instead, it says, nearly 30 percent of bail amounts were unaffordable. Between November 2017 and June 2018, judges set unaffordable bail amounts for more than 1,350 people.

Bail reformers are blind to the tradeoffs that must be made between public safety and the rights of defendants. Since the reformers are blind to these tradeoffs they can’t see that money bail actually helps to alleviate these tradeoffs. Reformers think that money bail simply keeps the poor in jail but in fact money bail is a half-way house between release on own recognizance and hold until trial. Money bail lets judges release more people. Bail reformers assume that if they eliminate money bail then judges will release everyone. In fact, as the Dylann Roof case illustrates, that is never going to happen. And when the public realizes that judges are releasing lots of defendants who subsequently commit more crimes there will be a backlash, as is already evident in Chicago. By eliminating the half-way house of money bail, bail reformers force judges to either release or hold until trial. Some people who under the current system are released on bail will, under the new system, be held until trial. Indeed, the unintended consequence of bail reform may be that more people are held until trial with no possibility of release.

Sometimes poor people are unfairly held until trial. Eliminating money bail, however, is a crude and dangerous approach to this problem. Instead we should deal with it directly by flagging and reevaluating jailed, non-violent offenders with low bail amounts, use alternative release measures such as ankle bracelets and most importantly, we should look to the constitution. The founders understood the ugly tradeoffs which is why the constitution guarantees the right to a “speedy trial.”  Unfortunately, that right today is widely ignored. My route to reform would begin by putting teeth back into the constitutional right to a speedy trial.

Addendum: Illinois doesn’t allow commercial bail so I haven’t mentioned bounty hunters but in other parts of the country their role in the criminal justice system is important, even if widely misunderstood and disparaged. My paper (with Eric Helland) shows that bounty hunters are more effective than the police at recapturing escaped defendants. More specifically, compared to similar defendants released using other methods, defendants released on commercial bail are much more likely to show up at trial and are much more likely to be recaptured should they flee. See also my adventures as a bounty hunter.

Unintended Consequences of Information Bans

Luke Froeb at Managerial Econ covers a number of cases in which information bans have led to unintended and negative consequences:

When I was at the Bureau of Economics at the FTC, we were asked by Congress whether using credit histories to price car insurance was discriminatory.  The resulting FACTA report found that:

  1. as a group, African-Americans and Hispanics tend to have lower scores than non-Hispanic whites and Asians.
  2. …scores effectively predict risk of claims within racial and ethnic groups.
  3. The Commission could not develop an alternative scoring model that would continue to predict risk effectively, yet decrease the differences in scores among racial and ethnic groups.

As a result, banning the use of credit scores would result in insurers finding other, less good and possibly discriminatory methods of distinguishing high from low risks, like selling insurance only in low risk areas.  Good drivers living in higher risk areas would be “pooled” with other drivers living in the high risk area, and would have to pay higher rates.

Previous studies (here and here) finds an analogous effect of preventing criminal background checks in employment, that doing so increases racial discrimination against African American men.

Adam Smith’s words are evergreen:

The man of system, on the contrary, is apt to be very wise in his own conceit…He seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chess-board. He does not consider that the pieces upon the chess-board have no other principle of motion besides that which the hand impresses upon them; but that, in the great chess-board of human society, every single piece has a principle of motion of its own, altogether different from that which the legislature might choose to impress upon it. If those two principles coincide and act in the same direction, the game of human society will go on easily and harmoniously, and is very likely to be happy and successful. If they are opposite or different, the game will go on miserably, and the society must be at all times in the highest degree of disorder.

The Civil War boosted Northern support for immigration

Here we arrive at one of the least appreciated factors in the equation that led to the Union victory: the military service of immigrants.  Foreign-born recruits provided the Union army with the advantage it needed over its Confederate rival.  An estimated 25 percent of the soldiers in the Union army (some 543,000) and more than 40 percent of the seamen in the navy (84,000) were foreign-born.  If one includes soldiers with at least one immigrant parent, the overall figure climbs to 43 percent of the Union army…

The demands of war meant that Union officials needed to appeal to immigrants.  Military recruitment placards were printed in foreign languages; Union officials presented the war as part of a transnational struggle for republican government, thereby decoupling the idea of the nation from Anglo-Saxon Protestantism…

The military service of the foreign-born did more than enhance the Union’s advantage in the field.  It also transformed the politics of nativism in the United States.  From the nativism of the 1850s, exemplified by Know-Nothingism and bigoted anti-Catholicism, the Union now moved in the direction of welcoming — indeed, encouraging — foreign arrivals.

That is all from the new book by Jay Sexton, A Nation Forged by Crisis: A New American History.