Month: November 2018

Microsoft is now the world’s most valuable company

Microsoft’s current market cap has overtaken Apple’s, after living for nearly a decade in the shadow of the Cupertino company.

At the time of writing Microsoft’s intra-day Market Cap is now 751.88B, higher than competing company Apple Inc. which is now 749.75B, by more than 2 billion dollars.

Amazon (currently 741.90B) and Apple were dubbed the world’s most valuable tech companies by Market Cap earlier this year as they crossed the $1 trillion mark. With Microsoft now overshadowing all three, including Alphabet Inc, the firm now looks to be the most valuable tech company…

Investors are concerned about slowing revenue growth at the so-called FANG companies (Facebook, Apple, Netflix and Google), a club of high flyers Microsoft has traditionally been excluded from.

Now they are betting company spending on cloud services and software will remain strong as companies strive to increase efficiency and productivity, while Facebook and Google are increasingly coming under scrutiny for their consumer data practices.

Microsoft’s cloud segment, in particular, is expected to do well, with Office 365 the lead programs in the market for cloud-based productivity tools, while Azure services for storing data and running apps in the cloud is in a solid second position to Amazon’s AWS. Microsoft is also increasingly relying on a steady subscription business which is less subject to volatility.

Here is the full story.

Friday assorted links

A Time to Fast

Over one hundred years ago researchers demonstrated that calorie restriction in rats increased lifespan, sometimes by as much as 50%. Since that time, the finding has been replicated and extended to primates. A few humans have taken up the diet but for most of us easy access to delicious food trumps willpower. A new paper in Science reviews the literature on calorie restriction and also offers some evidence that less restrictive regimes such as intermittent fasting may have similar effects.

First on calorie restriction. As noted, we have data on mice and primates showing increased lifespan and we also have data on humans showing the same physiological improvements as seen in other species:

In humans, short-term trials such as the multicenter CALERIE (Comprehensive Assessment of Long-Term Effects of Reducing Intake of Energy) study (2629), the observational studies of centenarians residing in Okinawa who have been exposed to CR for most of their lives (30), and observations of the members of the Calorie Restriction Society (CRONies) who self-impose CR (31) have shown the occurrence of many of the same physiological, metabolic, and molecular benefits typically associated with long-lived animals on CR. These studies support the observation that long-term CR preserves a more youthful functionality by improving several markers of health, including decreases in body weight, metabolic rate, and oxidative damage (14); lower incidence of cardiovascular disease (31) and cancer; and decreased activity of the insulin-Akt-FOXO signaling pathway (32, 33).

Although these findings clearly indicate that a reduction of caloric intake could be an effective intervention to improve health and prevent disease during aging in humans, there are several obstacles [including safety concerns and lack of data in older popualtions] and…The current “obesogenic” social environment makes it difficult for individuals to adhere to strict dietary regimens and lifestyle modifications for long periods of time. Thus, there is interest in alternative feeding regimens that may recapitulate at least some of the beneficial effects of CR by controlling feeding-fasting patterns with little or no reduction in caloric intake.

So what else works? Three regimes have shown promise. 1) Time Restricted Feeding (TRF), i.e. limiting eating time to a 4-12 period during the day and preferably earlier in the day, 2) Intermittent Fasting (IF)–say a 24-hour period of 1/4 calorie consumption once or twice a week and 3) a Fasting Mimicking Diet (FMD) in which calories are restricted to 30% of normal with a higher proportion coming from fat and doing this for five days periodically, i.e. once a month to once very couple of months. The diagram presents the main results and evidence.


The Republican Club — why is this painting interesting?

It hangs in the White House, and Trump seems to like the picture.  What about the image is striking?  I can think of a few things:

1. There are no Founding Fathers in the painting, or other references to the more distant past, and so “Republicans” are presented as a distinct club of their own, above and beyond the broader American tradition.  (On the far right, is that Theodore Roosevelt, Vernon Smith, or somebody else?)

2. The first George Bush (upper left), and Gerald Ford, are both denied a “seat at the proverbial table.”  Bush seems to look on with admiration.  The second George Bush, on the left side of the table seated, appears run down and haggard, defeated by the job.  He looks a wee bit like a paler Obama.

3. Nixon, who had to resign, drinks alcohol while Trump seems to have Coca-Cola.

4. Reagan is shown as Trump’s only peer, while Eisenhower is the one “closest” to Trump, and the one most appreciative.  Of course many of Trump’s policy preferences seem aimed at returning us to the Eisenhower era in some way (higher tariffs, lower immigration, less regulation, etc.)

5. Trump is the only one with a tie, except for TR, and it is a striking red tie.

6. Hoover, Harding, and Coolidge are in the distant back right.

7. It reminds me of a variety of “Last Supper” paintings, though not Leonardo’s.  There are twelve of them.

8. The background, with its column and twinklings lights, is reminiscent of late 19th century French impressionism.

9. Who is the bearded figure in the foreground, with his back to us?  At first I thought it was Mephistopheles, but it turns out to be Lincoln.  He is a passive onlooker with weak shoulders, and with no commanding or influential presence of his own.

10. Andy Thomas, the artist, also painted the very different The Democratic Club.  You could write a short book on the contrasts between the two paintings, for instance notice the Democrats are drinking beer and have a much wider and open background, with fewer columns.

Here is a related interview about the painting.  Via Anecdotal.

The best results on assortative mating and inequality I have seen

This paper studies the evolution of assortative mating in the permanent wage (the individual-specific component of wage) in the U.S., its role in the increase in family wage inequality, and the factors behind this evolution. I first document a substantial trend in assortative mating, as measured by the permanent wage correlation of couples, from 0.3 for families formed in the late 1960s to 0.52 for families formed in the late 1980s. I show that this trend accounts for more than one-third of the increase in family wage inequality across these cohorts of families. I then argue that the increase in marriage age across these cohorts contributed to the assortative mating and thus to the rising inequality. Individuals face a large degree of uncertainty about their permanent wages early in their careers. If they marry early, as most individuals in the late 1960s did, this uncertainty leads to weak marital sorting along permanent wage. But when marriage is delayed, as in the late 1980s, the sorting becomes stronger due to the quick resolution of this uncertainty with work experience. After providing reduced-form evidence on the impact of marriage age, I build and estimate a marriage model with wage uncertainty and show that the increase in marriage age can explain almost 80% of the increase in assortative mating.

That is from the job market paper of Alparslan Tuncay, from the University of Chicago.

My Conversation with John Nye

John is one of the smartest people I know, and one of my favorite people to talk to, here is the transcript and audio.  Here is the opening summary:

Raised in the Philippines and taught to be a well-rounded Catholic gentleman, John Nye learned the importance of a rigorous education from a young age. Indeed, according to Tyler he may very well be the best educated among his colleagues, having studying physics and literature as an undergraduate before earning a master’s and PhD in economics. And his education continues, as he’s now hard at work mastering his fourth language.

On this episode of Conversations with Tyler, Nye explains why it took longer for the French to urbanize than the British, the origins of the myth of free-trade Britain, why Vertigo is one of the greatest movies of all time, why John Stuart Mill is overrated, raising kids in a bilingual household, and much more.

Here is one bit:

NYE: In fact, one of the things I do know about the 19th century is that there’s no evidence that either unilateral free trade or multilateral did very much.

Almost all the free trade in Europe in the 19th century was a product of, initially, the bilateral trade agreement between Britain and France, sometimes known as the Anglo-French Treaty of Commerce of 1860, in which they each agreed to much more liberalized trade on a most-favored-nation basis. Once they accepted this, then what happened is, anyone who signed on to either Britain or France on the most-favored-nation basis then bought into, in some sense, this system.

Here is another:

COWEN: Particular mistakes aside, what were the systemic mistakes the Western world was making in, say, 1910, 1912?

NYE: I think the systemic mistake really boils down to how do you deal with the problem of power? How do you deal with the problem of different groups, different cultures wanting their place at the table? It’s clear that, if you look, a lot of the fight of imperialism was great-power competition.

If you look in the Far East, for example, some people may know that the United States took the Philippines from Spain at the end of the period of Spanish control of the Philippines in 1898, and partly this was due to Perry’s decision to sail into Manila Bay.

One of the things that’s not discussed — most people are unaware of — is that the German and British fleets were waiting in Hong Kong. They were waiting to see what the Americans did. And it’s quite likely that, had the Americans not steamed into Manila Bay, that the Germans or British would have intervened in the Philippines once the Spanish collapsed.


COWEN: And if there’s an underlying political subtext or import of Hitchcock, what do you think that would be? Not what he necessarily intended as his politics, but what’s in the movies in terms of human nature and political man?

NYE: Well, I think there’s this question of suspicion and the tendency to not appreciate how much is going on under the surface. I think people tend to see these things narrowly in terms of Cold War paranoia. But Hitchcock was a political conservative, and he was much more of the very old British conservative view that one should be wary in times of —

COWEN: Suspicion is metaphysical, right?

Definitely recommended, I am very honored to have had the chance to do this with John.

Artificial Intelligence is Alien Intelligence

Imagine if an alien came to earth and told us some new scientific fact that no human had ever known. Artificial intelligence is starting to do just that. Computers and AI have long given us solutions to problems that humans could not have worked out for themselves but AI is going beyond optimization to tell us facts about the world that no one suspected. Eric Topol on twitter points us to a paper in Nature that used deep learning to analyze retinal images to predict heart disease–it’s long been known that this can be done which is one reason why ophthalmologists take a close look at your retinas when fitting lenses but not surprisingly the AI can see more than can ophthalmologists. What was surprising, however, was that the AI could also tell gender from retinal images, a fact no one had ever previously considered! As a summary notes:

…that information in a retinal image can be used for the prediction of a persons gender is surprising and puzzling. This underscores the potential of artificial intelligence to revolutionize the way medicine is practiced and to help discover hidden associations.

Coleman Hughes reviews *Stubborn Attachments*

Excellent review, in Quillette, here is part of the closing sequence:

Ultimately, absorbing the thesis of Stubborn Attachments would entail a radical loss of purpose for the politically-minded among us. The small, short-term policy fights that energize us most are precisely the ones from which, on Cowen’s account, we should abstain entirely. Even the smartest among us don’t know what net effect small policies will have; plus very little well-being turns on such policies to begin with. Growth maximization, on Cowen’s view, becomes a moral black hole from which no partisan skirmish, no matter how seemingly important, can escape.

In a cultural landscape where partisan skirmishes regularly induce something approaching bloodlust on both sides of the political aisle, it’s safe to say that most Americans are roundly rejecting Cowen’s thesis at the moment. But perhaps that means the message of Stubborn Attachments is needed now more than ever.

Recommended, here is the link.

Those new service sector jobs

The DAWN Café is an upcoming trial project that will test an inclusive working environment. The café will seemingly be staffed with robots that will wait on you by bringing you your coffee and asking if you need anything. But if you think this is another example of robots coming for our jobs, you would be mistaken. Embedded within the robots are real intelligence: they’re operated remotely by people with severe disabilities who often can’t leave their bed.

Here is the story, via Dustin Palmer.

The surprising (?) formula for becoming an art star

From Kelly Crow at the WSJ:

New artists who show their work early in a relatively small network of 400 venues—like Gagosian Gallery or the Guggenheim Museum—are all but guaranteed a successful art career, the study said. By contrast, artists who exhibit mainly in lower-level galleries and midtier institutions are likely to remain stuck in that orbit.

“There’s this invisible network of trust that exists in the art world, but the group that decides who matters in art was considerably smaller and more powerful than we expected,” said Albert-László Barabási, a data scientist who studies networks at Northeastern and led the study along with several colleagues including a data scientist now at the World Bank, Samuel Fraiberger. Their findings also show up in Dr. Barabási’s book published earlier this week, “The Formula: The Universal Laws of Success.”

His findings undermine a popular art-world notion that a prodigy could create in obscurity and get discovered years later. Instead, the research suggests that artists who start out seeking connections with powerful curators, dealers and collectors within the nerve center of the art world are far more likely to hit the big time…

“If one of your first five shows as an artist is held at a gallery in the heart of this network, the chances of your ending your career on the fringes is 0.2%,” Dr. Barabási said. “The network itself will protect you because people talk to each other and trade each other’s shows.”

…“The art world prides itself on being so open and inclusive, but the truth is the opposite,” Mr. Resch said.

The same is true for academia, I might add.  And most other things.