Month: February 2024
Tuesday assorted links
1. Museum Selfie-Takers Are Causing Damage by Backing Into Artworks.
2. New Zealand is now falling behind much of Eastern Europe.
4. More coverage of Bukele. Good piece.
5. How religious is Iran these days?
6. Paul Bloom on how to be a good podcast guest.
7. Peter Thiel talk at Harvard. Best part on Christianity and the Woke starts at about 28:00.
Give Innovation a Chance
Elizabeth Currid-Halkett writing in the NYTimes discusses her son’s muscular dystrophy and his treatment with the controversial gene-therapy Elevidys. Currid-Halkett, like many parents whose children have been treated with Elevidys, reports much better results than appear in the statistics.
On Aug. 29, [my son] finally received the one-time infusion. Three weeks later, he was marching upstairs and able to jump over and over. After four weeks, he could hop on one foot. Six weeks after treatment, Eliot’s neurologist decided to re-administer the North Star Ambulatory Assessment, used to test boys with D.M.D. on skills like balance, jumping and getting up off the floor unassisted. In June, Eliot’s score was a 22 out of 34. In the second week of October, it was a perfect 34 — that of a typically developing, healthy 4-year-old boy. Head in my hands, I wept with joy. This was science at its very best, close to a miracle.
…a narrow focus on numbers ignores the real quality-of-life benefits doctors, patients and their families see from these treatments. During the advisory committee meeting for Elevidys in May 2023, I listened to F.D.A. analysts express skepticism about the drug after they watched videos of boys treated with Elevidys swimming and riding bikes. These experts — given the highest responsibility to evaluate treatments on behalf of others’ lives — seemed unable to see the forest for the trees as they focused on statistics versus real-life examples.
Frankly, I side with the statistics. We don’t hear from the parents in the placebo group whose children also spontaneously made improvements.
Even though I side the statistics, I side with approval. Innovation is a dynamic process. It’s not surprising that the first gene therapy for DMD offers only modest benefits; you don’t hit a home run the first time at bat. But if the therapy isn’t approved, the scientists don’t go back to the drawing board and keep going. If the therapy isn’t approved, it dies and you lose the money, experience and learning by doing that are needed to develop, refine and improve.
Approval is not the end of innovation but a stepping stone on the path of progress. Here’s an example I gave earlier of the same principle. When we banned supersonic aircraft, we lost the money, experience and learning by doing needed to develop quieter supersonic aircraft. A ban makes technological developments in the industry much slower and dependent upon exogeneous progress in other industries.
You must build to build better.
Addendum: Peter Marks is the best and perhaps the most important director CBER has ever had. CBER, the Center for Biologics Evaluation and Research, is responsible for biological products, including vaccines and gene therapies. Marks has repeatedly pushed and sometimes overruled his staff in approving products like Elevidys. Marks named and was the driving force at the FDA behind Operation Warp Speed, a tremendous FDA success and break with tradition. Marks has been challenging the FDA’s conservative culture. I hope his changes survive his tenure.
Map of the day model this mother distance what else besides population density
This is one of the most fascinating charts I’ve ever seen.
Been staring at it all morning trying to draw assumptions from it pic.twitter.com/vG01VRNExu
— Ben Little (@TRUmav) February 19, 2024
U.S. equity market dominance
That is the topic of my latest Bloomberg column:
The worldwide dominance of US equities is increasingly obvious. Of the top 10 components of the MSCI global stocks index — which itself now consists of about 70% US stocks — eight are US technology companies. The S&P 500 has breached the 5,000 level. On most days, Apple or Microsoft alone is more valuable than the entire stock markets of major European countries. By one estimate, last year publicly traded US firms accounted for 44.9% of global market capitalization.
All these gaudy numbers raise a question: Is the world on the cusp of a new American century, at least in the corporate realm? The answer is a qualified “yes.”
And this:
The major US tech companies sell to the entire world. Therefore part of the relative rise of US equities is about the liquidity and prestige of US markets, not just US economic success. US listings will dominate, and all the more over time, even when US customers are not the main source of revenue. Say you found a successful French AI company. Wouldn’t you prefer to be listed on the Nasdaq rather than on Paris Stock Exchange? A Nasdaq listing may make it easier to raise money, and the rest of the world will have a better understanding of the rules under which your securities are governed.
And:
And, just to fill out this rosy picture of America’s economic future, the US is doing well in other kinds of financial markets as well, including venture capital, private equity and private credit. The financialization of an economy does carry risks, but a lot of the recent developments are about deleveraging and greater maturity-matching — which should contribute to stability rather than damage it.
There is much more at the link.
ChatGPT as a predictor of corporate investment
We create a firm-level ChatGPT investment score, based on conference calls, that measures managers’ anticipated changes in capital expenditures. We validate the score with interpretable textual content and its strong correlation with CFO survey responses. The investment score predicts future capital expenditure for up to nine quarters, controlling for Tobin’s q and other determinants, implying the investment score provides incremental information about firms’ future investment opportunities. The investment score also separately forecasts future total, intangible, and R&D investments. High-investment-score firms experience significant negative future abnormal returns. We demonstrate ChatGPT’s applicability to measure other policies, such as dividends and employment.
That is from a new NBER working paper by Manish Jia, Jialin Qian, Michael Weber, and Baozhong Yang.
Monday assorted links
1. YouTube interview with Brad Mehldau. Very good.
2. How much can embryonic selection boost IQ?
3. Ukraine drone update. And Master and Margarita movie is a big hit in Russia (NYT). Do you recall the final scene of the novel?
4. Cowen’s Second Law. Good thing there is a replication crisis.
5. Groq — blinding speed, I say bullet chess for LLMs! Here is one possible explanation for the speed.
Avoiding Repugnance
Works in Progress has a good review of the state of compensating organ donors, especially doing so with nudges or non-price factors to avoid backlash from those who find mixing money and organs to be repugnant. My own idea for this, first expressed in Entrepreneurial Economics, but many times since is a no-give, no-take rule. Under no-give, no-take, people who sign their organ donor cards get priority should they one day need an organ. The great virtue of no-give, no-take is that it provides an incentive to sign one’s organ donor card but one that strikes most people as fair and just and not repugnant. Israel introduced a no-give, no-take policy in 2008 and it appears to have worked well.
In March 2008, to increase donations, the Israeli government implemented a ‘priority allocation’ policy to encourage more people to sign up to donate organs after their deaths. Once someone has been registered as a donor for three years, they receive priority allocation if they themselves need a transplant. If a donor dies and their organs are usable, their close family members also get higher priority for transplants if they need them – which also means that families are more inclined to give their consent for their deceased relatives’ organs to be used.
In its first year, the scheme led to 70,000 additional sign-ups. The momentum continued, with 11.1 percent of all potential organ donors being registered in the five years after the scheme was introduced, compared to 7.7 percent before. According to a 2017 study, when presented with the decision to authorize the donation of their dead relative’s organs, 55 percent of families decided to donate after the priority scheme, compared to 45 percent before.
I am tired of making this point
Both rightists and leftists assume that the U.S. spends far lower to combat social problems (poverty, healthcare, education) than peer nations, but that is not true. pic.twitter.com/CXdVDNWb6p
— David (@Data_David1) February 18, 2024
Here Robin Hanson notes that social spending as a percent of gdp tends to rise almost universally:
Key question: will these trends continue over the next two centuries even if innovation grinds to a halt due to falling population? https://t.co/ysBMuGiX5b
— Robin Hanson (@robinhanson) February 18, 2024
Is some deterrence being restored?
When U.S. forces launched strikes this month on Iranian-backed groups in Yemen, Syria and Iraq, Tehran publicly warned that its military was ready to respond to any threat. But in private, senior leaders are urging caution, according to Lebanese and Iraqi officials who were briefed on the talks. They spoke to The Washington Post on the condition of anonymity to discuss the sensitive conversations.
U.S. officials say the message might be having some effect. As of Saturday, Iranian-backed militias in Iraq and Syria hadn’t attacked U.S. forces in more than 13 days, an unusual lull since the war in Gaza began in October. The militants held their fire even after a U.S. drone strike in Baghdad killed a senior Kataib Hezbollah official.
“Iran may have realized their interests are not served by allowing their proxies unrestricted ability to attack U.S. and coalition forces,” one U.S. official said, speaking on the condition of anonymity to discuss the sensitive matter.
Here is the full WaPo story, via Christian.
“Centaur chess” is now run by computers
Remember when man and machine played together to beat the solo computers? It was not usually about adding the man’s chess judgment to that of the machine, rather the man would decide which computer program to use in a given position, when the programs offered conflicting advice. that was called Centaur Chess, or sometimes “Freestyle chess,” before that term was applied to Fischer Random chess. For years now, the engines have been so strong that strategy no longer made sense.
But with engine strength came chess engine diversity, as for instance Stockfish and Alpha Zero operate on quite different principles. So now “which program to use” is once again a live issue. But the entity making those choices is now a program, not a human being:
A traditional AI chess program, trained to win, may not make sense of a Penrose puzzle, but Zahavy suspected that a program made up of many diverse systems, working together as a group, could make headway. So he and his colleagues developed a way to weave together multiple (up to 10) decisionmaking AI systems, each optimized and trained for different strategies, starting with AlphaZero, DeepMind’s powerful chess program. The new system, they reported in August, played better than AlphaZero alone, and it showed more skill—and more creativity—in dealing with Penrose’s puzzles. These abilities came, in a sense, from self-collaboration: If one approach hit a wall, the program simply turned to another.
Average is Over, love and romance edition
The dating site Tinder reports that, in 2023, 41 percent of Gen Z users were open to or seeking non-monogamous relationships, and 26 percent were open to ‘hierarchical polyamory’.
Here is the link. On the AI side, from the London Times:
What all my AI girlfriends have in common is that they foster pseudo-intimacy at lightning speed, they all have extra cost levels and they all “gamify” the experience somehow, whether through collectable badges, gems or levels of achievement which reward interaction with the AI.
Good luck young ones, what is the (partially) offsetting change in norms this will produce?
Sunday assorted links
1. More Joe Henrich on cousin marriage.
2. Dating across languages, using AI (NYT).
3. The Hugo is no longer a legitimate award (NYT).
4. Dan Schulz on how to boot up in classical music (which is one of the world’s greatest gifts to you, and essentially free).
5. “The Horse Association of America was created to fight the rise of the tractor.“
How did Madrid become the capital of European liberalism?
But in the case of Madrid, the last 25 years have been a clear move towards higher degree of tax competitiveness, smart regulation, and an overall liberal policy in the economic sense. And then our society is fairly open and tolerant and recognized to be what we would broadly described as a free society, an open society.
And I guess that began to make sense 10 years ago, but it’s really started to make sense in the last several years. Following the pandemic, I think we had a great opportunity to show that mentality to the rest of the world because as everybody was shutting down, Madrid was Europe’s only open capital for very long in 2020 and 2021.
And I guess that raised a lot of eyebrows. And that is why a lot of people are moving to Madrid. People are voting with their feet. They want more of this. And that’s the Madrid way of liberalism that I discuss in this book. And to be honest, It’s not so common that you get to see 25 years of ongoing, non-stop free market reforms coupled together with an open, tolerant society…
Barcelona had been the icon of openness and the region that projected itself as a more European territory within our country and its economic power powerhouse as well. But sadly for Catalonia and happily for Madrid, there’s been a big change and a big shift to the point that this no longer applies. And it’s not been the case at all for the last few decades. I think the international level, of course, perceptions are harder to shift, but I don’t think anyone in Spain today will argue that Catalonia, as they have moved closer to the ideas of separatism and as nationalism has become a powerful figure in the regional politics, hasn’t been slowly becoming a more closed society.
That is from Diego Sánchez de la Cruz, interviewed by Rasheed Griffith, both podcast and transcript at the link. Interesting throughout, and Diego has a new book out Liberalismo a la madrileña.
Saturday assorted links
1. Dutch waterworks.
2. Pseudo-currencies in Argentina.
4. Recommendations for understanding Eastern and Central Europe.
5. Ross D. on Ukraine aid (NYT).
6. BYD will set up an EV factory in northern Mexico. I am curious to see the policy response to that one.
My view of *Casablanca* (with spoilers, but you’ve seen it already?)
Paul Wall asks about my Casablanca comment:
When Rick won’t give Laszlo the letters of transit, and Laszlo asks him why, Rick says “I suggest your ask your wife.” In essence he is forcing Laszlo to force Ilsa to confess to their earlier Paris affair in as humiliating a way as possible. Ilsa has to tell not only of the affair, but that she promised Rick eternal fealty, and treated Rick so badly that he now would be so vindictive.
When Ilsa visits Rick in his room that one night toward the end of the movie, he “takes” her again, and gets her to fall in love with him again, or so it seems. But is Ilsa only acting, and playing to Rick’s vanity to get the letters of transit? You can debate that point, but either way Rick seems happy enough to sleep with her on that basis. That is one of his ways of humiliating her again, and it enables him to be psychologically free enough to let her go in the movie’s final scene.
[Interjection: I view her recurring attachment to Rick as real, and her love for Laszlo as somewhat daughterly, and that she is self-deceiving throughout with both men. That said, what she most loves about Rick is that she can partake in the relationship without having to be known, without having to be anybody at all. She and Rick, as a couple in ordinary life running errands at the Five and Dime in Cleveland, probably would not do so well. Ilsa is a woman who never has found herself and is somehow always in transition, always on the run. It is no surprise she attaches to two men with broadly similar tendencies.]
At the movie’s end, Rick gives Ilsa back and insists she leave Casablanca with Laszlo. What a hell their marriage is going to be. Stuck in America, where neither has much to do, though he lives for his work. Laszlo now knows she loved Rick more, knows she just fell for Rick again and slept with him the night before (women willing to prostitute themselves is a recurring theme in the film), and knows she has been lying to him in various ways throughout their relationship. Ilsa knows these things too, and now knows that Laszlo knows. But what really is Laszlo’s choice or Ilsa’s choice other than to proceed? They end up playing the roles of puppets in Rick’s little planned charade.
Rick gets to wander off with Louis (“this is the beginning of a beautiful friendship”), into the Free French garrisons in the desert, facing struggles but also enjoying a true freedom, including a freedom from Ilsa because he humiliated and punished her so much, and because that punishment will be so enduring. He had been waiting around in Casablanca to punish her, and now he really cannot punish her any more. Life can go on.
If you recall the scene where Rick helps the young husband win at the roulette table, so his wife doesn’t have to prostitute herself to get exit visas, we know that the more sentimental side of Rick regards such prostitution as an ultimate humiliation, not as a mere transaction to be digested in Benthamite fashion and then forgotten.
A more Benthamite Rick might have been a happier and better-adjusted guy.