Category: Education

Does temporary migration from rich to poor countries cause commitment to development?

The author is Lee Crawfurd and the subtitle of the paper is “Evidence from quasi-random Mormon mission assignments.”  Here is part of the abstract:

…we address this question using a natural experiment–the assignment of Mormon missionaries to two-year missions in different world regions–and test whether the attitudes and activities of returned missionaries differ. I find that assignment to a region in the global South causes returned missionaries to report greater interest in global development and poverty, but no difference in support for government aid or higher immigration, and no difference in personal donations or other involvement.

Maybe Mormons are different in this regard, or maybe missions are different (you feel you have done your bit?), but still an interesting result.

Two Teaching Resources

William Luther has put together an excellent list of Planet Money episodes that are keyed to the relevant chapters in Modern Principles of Economics. A similar list is also available for the excellent intermediate-micro text by Goolsbee, Levitt and Syverson.

For graduate students, Luke Stein has put together a 64 page “cheat sheet” (pdf) for basically the first 2 years of micro and macro theory. It’s not for everyone but would be great for studying for prelims at many top programs. This diagram summarizing key results in consumer theory was excellent.

Greek life isn’t as good as you thought

Using records from a large public university, we examine the impact of Greek life on academic performance and salaries. To isolate the causal effect of Greek life, we exploit a university policy prohibiting students from joining a Greek organization during their first semester and a minimum GPA for subsequent eligibility. Regression discontinuity and panel methods reveal that Greek affiliation reduces student grades by 0.1-0.3 standard deviations. Greek effects are largest during the semester of pledging, semesters of increased social activities, and for males. We find no evidence of a Greek salary premium and rule out even modest positive effects.

That is from a new paper by William E. Even and Austin C. Smith, being presented at the AEa meetings this week.

Why private regulation of internet speech doesn’t make many people happy

That is the topic of my latest Bloomberg article, here is one excerpt:

I’d like to suggest a simple trilemma. When it comes to private platforms and speech regulation, you can choose two of three: scalability, effectiveness and consistency. You cannot have all three. Furthermore, this trilemma suggests that we — whether as users, citizens or indeed managers of the platforms themselves — won’t ever be happy with how speech is regulated on the internet.

There is much more at the link.

Me on elitism in economics

He [Cowen] said that he agreed with the idea that influence of economics comes from a relatively small number of institutions, and he thinks the number is shrinking. “What used to be something like a ‘top six’ has over time become the ‘top two,’ namely Harvard and MIT.”

Cowen said that he doesn’t “find that entirely ideal, by any means.” But he also said that those departments deserve praise for their work. “Harvard and MIT are in fact remarkably good at finding, evaluating and attracting top talent. It is stunning how good they are at this, and we should not begrudge them that,” he said. (Cowen is an example, having earned his Ph.D. at Harvard. His undergraduate alma mater is George Mason, where he teaches.)

The centralization of top departments, he said, worries him less than do “pressures for conformity.”

Cowen added that he is sympathetic to Vigdor’s criticism, but that the centralization may be “an opportunity” for departments outside the elites to shine. “The centralized centers of influence are going to miss important ideas in their early stages,” Cowen said. “Both public choice and experimental economics came out of non-top schools,” including to some extent George Mason, he said. “So did blogging. If something is unfair, well, in part that is your big chance.”

That is from Scott Jaschik at Inside HigherEd, mostly about Jacob Vigdor and his critique of the economics profession.

Does Economics Make You Sexist?

That is the title of a new paper by Valentina Paredes, M. Daniele Paserman, and Francisco J. Pino, to be presented at the forthcoming AEA meetings:

Recent research has highlighted unequal treatment for women in academic economics along several different dimensions: promotion, hiring, credit for co-authorship, and standards for publication in professional journals. Can the source of these differences lie in biases against women that are pervasive in the discipline, even among students in the earliest stages of their training? In this paper, we provide direct evidence on the importance of explicit and implicit biases against women among students in economics relative to other fields. We conducted a large scale survey among undergraduate students in Chilean universities, among both entering first-year students and upperclassmen. The survey elicits measures of implicit bias, explicit bias, and gender attitudes. We document that, on a wide battery of measures, economics students are more biased than students in other fields. There is some evidence that economics freshmen are more biased already upon entry, before exposure to any economic classes. The gap becomes substantially more pronounced among upperclassmen, in particular for male students. We find evidence of an increase in bias in a limited sample of students that we can follow longitudinally. A significant part of the gap between economics and non-economics students can be explained by differential exposure to female professors.

Work through here is the top link is failing you.  I would note by the way that gender relations in Chile have a reputation for being especially…bifurcated.

My Conversation with Rebecca Kukla

She is a philosopher at Georgetown, here is the audio and transcript, I thought it was excellent and lively throughout.  Here is part of the summary:

In her conversation with Tyler, Kukla speaks about the impossibility of speaking as a woman, curse words, gender representation and “guru culture” in philosophy departments, what she learned while living in Bogota and Johannesburg, what’s interesting in the works of Hegel, Foucault, and Rousseau, why boxing is good for the mind, how she finds good food, whether polyamory can scale, and much more.

Here is one bit:

KUKLA: What’s interesting in Hegel? Okay. You ask hard questions. This is why you’re good at your job, right?

I think Hegel’s fascinating. I think the main idea in Hegel that is fascinating is that any cultural moment, or set of ideas, or set of practices is always internally contradictory in ways it doesn’t notice, that there are tensions built into it. What happens, over time, is that those tensions bubble up to the surface, and in the course of trying to resolve themselves, they create something newer and better and smarter that incorporates both of the original sides.

That was a much more Hegelian way of putting it than I wanted it to come out, basically — the idea that going out and looking for consistency in the world is hopeless. Instead, what we should do is figure out how the contradictions in the world are themselves productive, and push history forward, and push ideas forward, is what I take to be the key interesting Hegelian idea.

COWEN: Michel Foucault. How well has it held up?

KUKLA: Oh, you’re asking me about people I mostly love.

COWEN: But empirically, a lot of doubt has been cast upon it, right?

KUKLA: On the details of his empirical genealogical stories, you mean?

COWEN: Yes.

KUKLA: Yes, but I think that the basic Foucauldian picture, which is — let’s reduce Foucault to just two little bits here. One basic piece of the Foucauldian picture is that power is not a unify-unilateral, top-down thing. Power expresses itself in all of the little micro interactions that go on between people and between people and their environments all the time.

Power isn’t about a big set of rules that’s imposed on people. Power is about all of the little things that we do with one another as we move through the world. All of those add up to structures of power, rather than being imposed top-down. I think that has been, at least for me and for many other people, an incredibly fertile, productive way of starting to think about social phenomenon.

The other bit of the Foucauldian picture that I think is incredibly important is the idea that a lot of this happens at the level of concrete, fleshy bodies and material spaces. Power isn’t sets of abstract rules. Power is the way that we are trained up when we are little kids — to hold our legs in a certain way, or to hold our face in a certain way, or to wear certain kinds of clothing. Power is the way that schools are built with desks in rows that enforces a certain direction of the gaze, and so on.

I could go on and on, but the way that the materiality of our bodies and our habits and our environments is where power gets a hold, and where our social patterns and norms are grounded, rather than in some kinds of high-level principles or laws, is also, I think, very fertile.

That’s independent of the details of his genealogical stories. Because, yeah, he does seem to have played fairly fast and loose with actual historical details in a lot of cases.

Here is another segment:

COWEN: Let me start with a very simple question about feminism. What would be a rhetorical disadvantage that many women are at that even, say, educated or so-called progressive men would be unlikely to see?

KUKLA: A rhetorical disadvantage that we’re at — that’s a fascinating question. I think that there is almost no correct way for a woman to use her voice and hold her body to project the proper kind of expertise and authority in a conversation.

I think that there’s massive — I don’t even want to call it a double bind because it’s a multidimensional bind — where if we sound too feminine, sounding feminine in this culture is coded as frivolous and unserious. If we sound too unfeminine, then we sound like we are violating gender norms or like we are unpleasant or trying to be like a man.

I think that almost any way in which we position ourselves — if we try to be polite and make nice, then we come off as weak. If we don’t make nice, then we’re held to a higher standard for our appropriate behavior than men are. I think there’s almost no way we can position ourselves so that we sound as experts. So oftentimes, the content of our words matters less than our embodied presentation as a woman.

Definitely recommended.

Life at the margin?

With Seamus Heaney:

Poetry isn’t important in one sense — it’s more important to live your life and be a good person. Who cares about poetry, there’s plenty already around. Life is more important than art.

Under what conditions is that true?  Under what conditions is it actually believed by Heaney?  Here is the rest of the interview, interesting throughout.  I enjoyed this bit:

MB: What do you like to discuss in terms of literature in your classes?
SH: I’m radical about this, but it seems strange to have discussions with people who don’t know anything and who overreact. They usually don’t have much to say. Maybe discuss literature with them the following year — after the class — when they’ve had time to have the material enter their memory. Until it’s entered their personality they can’t say much.

Via Anecdotal.

True, trivial and yet still neglected in import

Go to More Parties? Social Occasions as Home to Unexpected Turning Points in Life Trajectories

Reviving classical attention to gathering times as sites of transformation and building on more recent microsociological work, this paper uses qualitative data to show how social occasions open up unexpected bursts of change in the lives of those attending. They do this by pulling people into a special realm apart from normal life, generating collective effervescence and emotional energy, bringing usually disparate people together, forcing public rankings, and requiring complex choreography, all of which combine to make occasions sites of inspiration and connection as well as sites of offense and violation. Rather than a time out from “real” life, social occasions hold an outsized potential to unexpectedly shift the course that real life takes. Implications for microsociology, social inequality, and the life course are considered.

That is from the excellent Alice Goffman.  And “from the credits,” here is the really big news:

Alice Goffman is assistant professor of sociology at the University of Wisconsin Madison and McConnell Visiting Assistant Professor at Pomona College. She is finishing a book titled Fateful: Where and When Life Changes Unexpectedly, with University of Chicago Press.

Via Kevin Lewis.

In defense of McKinsey

That is the topic of my latest Bloomberg column, here is the opener:

The latest institution to take a big whack from the media, with its well-known negative bias, is McKinsey & Co. A recent article in The New York Times shows how much the consulting company has worked for authoritarian and autocratic countries, including China, Saudi Arabia and Russia.

I would instead frame this story in a broader and far more positive reality: One of the biggest, most positive (and most neglected) global trends over the last 30 years has been the spread of managerial and technocratic expertise to what used to be called “third world governments.” In most countries, the central banks, the public health authorities, the treasuries and many other public-sector institutions now collect good data, hire Western-educated advisers, and try to implement good solutions.

And:

…when I meet entrepreneurs in poorer parts of the world, I am often struck by the fact that they are highly intelligent and conscientious, but they don’t always understand all of the cultural codes of good management. Advice that might appear stupid or trivial to more experienced observers may actually help to build new cultures of business excellence and economic growth.

There is much more at the link.  Here is a good tweet stream on the company.  Here is the McKinsey response to the NYT article.

My Conversation with Daniel Kahneman

Here is the transcript and audio, a rollicking time was had by all.  We covered what you would expect us to have covered.  Here is one bit:

COWEN: And that people want to maximize their overall sense of how their life has gone — do you think that is ultimately Darwinian roots? Why is that the equilibrium? Happiness feels good, right?

KAHNEMAN: Yeah, happiness feels good in the moment. But it’s in the moment. What you’re left with are your memories. And that’s a very striking thing — that memories stay with you, and the reality of life is gone in an instant. So memory has a disproportionate weight because it’s with us. It stays with us. It’s the only thing we get to keep.

COWEN: If you think of your own life, have you maximized happiness or the overall sense of how your life has gone?

KAHNEMAN: Neither.

[laughter]

COWEN: Neither. Citations?

KAHNEMAN: No.

And on his new project:

KAHNEMAN: I’ll tell you where the experiment from which my current fascination with noise arose. I was working with an insurance company, and we did a very standard experiment. They constructed cases, very routine, standard cases. Expensive cases — we’re not talking of insuring cars. We’re talking of insuring financial firms for risk of fraud.

So you have people who are specialists in this. This is what they do. Cases were constructed completely realistically, the kind of thing that people encounter every day. You have 50 people reading a case and putting a dollar value on it.

I could ask you, and I asked the executives in the firm, and it’s a number that just about everybody agrees. Suppose you take two people at random, two underwriters at random. You average the premium they set, you take the difference between them, and you divide the difference by the average.

By what percentage do people differ? Well, would you expect people to differ? And there is a common answer that you find, when I just talk to people and ask them, or the executives had the same answer. It’s somewhere around 10 percent. That’s what people expect to see in a well-run firm.

Now, what we found was 50 percent, 5–0, which, by the way, means that those underwriters were absolutely wasting their time, in the sense of assessing risk. So that’s noise, and you find variability across individuals, which is not supposed to exist.

I enjoyed this particular exchange:

COWEN: Do you think of low intelligence as yet a third independent source of error? Or is that somehow subsumed in bias and noise?

KAHNEMAN: You mean plain stupidity?

[laughter]

COWEN: In some cases.

And this:

COWEN: A society such as Argentina that relies so heavily on psychoanalysis — as a psychologist, do you see that as bias? Is it a placebo? Is there a placebo effect in psychoanalysis?

KAHNEMAN: You seem to attribute . . . You seem to think that I think of bias all the time.

[laughter]

COWEN: I can’t imagine why. That’s my bias.

KAHNEMAN: It’s like thinking of sex all the time. I really don’t think of bias that much.

Finally:

COWEN: Some questions about psychologists outside of what you’ve worked on, but maybe related — Freud. What do you think of Freud’s body of work? And has it influenced you at all?

Definitely recommended, and you will find cameo appearances by Michael Nielsen and Daniel Gross.

*The Economist* picks eight young top economists

They are:

Ms Dell and her Harvard colleagues Isaiah Andrews, Nathaniel Hendren and Stefanie Stantcheva; Parag Pathak and Heidi Williams of the Massachusetts Institute of Technology…Emi Nakamura of the University of California, Berkeley and Amir Sufi of the University of Chicago Booth School of Business…

Mr Pathak and his co-authors have compared pupils who only just made it into elite public schools with others who only just missed out, rather as Ms Dell compared villages on either side of the Pentagon’s bombing thresholds. The study showed that the top schools achieve top-tier results by the simple contrivance of admitting the best students, not necessarily by providing the best education. Ms Dell and her co-author showed that bombing stiffened villages’ resistance rather than breaking their resolve.

Ms Williams has exploited a number of institutional kinks in the American patent system to study medical innovation. Some patent examiners, for example, are known to be harder to impress than others. That allowed her to compare genes that were patented by lenient examiners with largely similar genes denied patents by their stricter colleagues. She and her co-author found that patents did not, as some claimed, inhibit follow-on research by other firms. This suggested that patent-holders were happy to let others use their intellectual property (for a fee).

Here is the article, it is an interesting piece.

Does school spending matter for child outcomes?

It seems it does, here is an excerpt from the conclusion of a new C. Kirabo Jackson paper on this question:

The recent quasi-experimental literature that relates school spending to student outcomes overwhelmingly support a causal relationship between increased school spending and student outcomes. All but one of the several multi-state studies find a strong link between spending and outcomes – indicating that money matters on average. Importantly, this is true across studies that use different data-sets, examine different time periods, rely on different sources of variation, and employ different statistical techniques. While one can poke holes in each individual study, the robustness of the patterns across a variety of settings is compelling evidence of a real positive causal relationship between increased school spending and student outcomes on average. However, an examination of single-state studies suggests that, on average, money matters, but that this is not always so in all settings or in all contexts.

And this:

To better understand why some studies find positive impacts while others do not, an examination of the few studies that are not positive is instructive. Three out of the seven papers that are not significant involve Title I spending, and three out of the seven involve capital spending. Given that 6 out of 7 of the studies that find no significant impact (86%) involve particular spending types may suggest that while overall budget increases may improve outcomes, increased funding tied to particular uses may not. In particular, the evidence is consistent with capital spending and Title I spending being less predictably effective than spending in general.

Here is an earlier and related paper on whether school spending cuts matter.

Deconstructing cultural codes

As I continue to do Conversations with Tyler, more people ask me about “the Tyler Cowen production function.”  Well, here is one piece of it I don’t think I’ve written about or talked about before.  I’m going to bring you there in slightly long-winded fashion, long-winded for a blog post that is.

I’ve long been convinced that “matters of culture” are central for understanding economic growth, but I’m also painfully aware these theories tend to lack rigor and even trying to define culture can waste people’s time for hours, with no satisfactory resolution.

So I thought I would tackle this problem sideways.  I figured the best way to understand culture was to try to understand or “crack” as many cultural codes as possible.  As many styles of art.  As many kinds of music.  As many complex novels, and complex classic books, and of course as many economic models as well.  Religions, and religious books.  Anthropological understandings.  I also learned two languages in my adult years, German and Spanish (the former better than the latter).  A bit later I realized that figuring out how an economic sector works — if only partially — was really not so different from cracking these other cultural codes.  For instance, once I spent three days on a boat (as keynote speaker), exclusively with people from a particular segment of the shipping trade.  It was like entering a whole new world and every moment of it was fascinating.

Eventually it seemed to me that problems of management were themselves a kind of cultural code, each one different of course.

And travel was the most potent form of this challenge, every new place a new culture to be unraveled and partially understood, and how much time was there to do that anyway?

It is very time-consuming — years-consuming — to invest in this skill of culture code cracking.  But I have found it highly useful, most of all for various practical ventures and also for dealing with people, and for trying to understand diverse points of view and also for trying to pass intellectual Turing tests.

I am not recommending this you at any particular margin, or at the margin I have invested in.  But if you ask me about the Tyler Cowen production function, every now and then I will tell you.

Addendum: It occurs to me that the number and diversity of cultural codes is increasing much faster than the ability of any individual to track them, much less master them.  In this regard, an understanding of matters cultural is always receding from us.

A social credit system for scientists?

Researchers in China who commit scientific misconduct could soon be prevented from getting a bank loan, running a company or applying for a public-service job. The government has announced an extensive punishment system that could have significant consequences for offenders — far beyond their academic careers.

Under the new policy, dozens of government agencies will have the power to hand out penalties to those caught committing major scientific misconduct, a role previously performed by the science ministry or universities. Errant researchers could also face punishments that have nothing to do with research, such as restrictions on jobs outside academia, as well as existing misconduct penalties, such as losing grants and awards.

“Almost all aspects of daily life for the guilty scientists could be affected,” says Chen Bikun, who studies scientific evaluation systems at Nanjing University of Science and Technology.

The policy, announced last month, is an extension of the country’s controversial ‘social credit system’, where failure to comply with the rules of one government agency can mean facing restrictions or penalties from other agencies.

The punishment overhaul is the government’s latest measure to crack down on misconduct. But the nature and extent of the policy has surprised many researchers. “I have never seen such a comprehensive list of penalties for research misconduct elsewhere in the world,” says Chien Chou, a scientific integrity education researcher at Chiao Tung University in Taiwan.

By David Cyranoski in Nature, via Michelle Dawson.