Here is the story, note that Hillary Clinton was removed as well and Billy Graham was added, at least on a preliminary vote. Various historical figures were assessed for their relevance, and Helen Keller did not receive a high enough score. Barbara Jordan, Sam Houston, Stephen F. Austin and Henry B. González — all figures from Texas history — made it through easily. Dolores Huerta was added.
On Keller, here is some additional background:
In 1929 and again in 1938 she published books that both contained extended sections defending the Soviet Union—which she maintained was still a more or less democratic workers’ state—and praised the late Vladimir Lenin, whose great legacy rested on how he had helped to sow in Russia “the unshatterable seed of a new life for mankind.”
There is some chance the Texas decision will influence textbooks on a nationwide basis, because Texas is such a large market and publishers wish to market the same book nationally.
Keller should be kept because she is an impressive, focal, and easy to explain example of an individual who overcame disabilities and became prominent and influential. At the margin, her radicalism is a reason to include her, not to exclude her. Students should be encouraged to think of America as having had a diverse intellectual history, including radicalism. That said, the same should hold for a variety of now-disgraced figures on the Right, provided of course that they have meritorious achievements worthy of note, and no this is not by definition impossible.
The first linked article claims that cutting Keller from the curriculum will save forty minutes. Even if you don’t think Keller is worth exactly forty minutes, surely she is worth more than zero minutes, and besides the teacher simply can talk faster if need be (don’t most teachers talk too slowly?).
I don’t mind keeping the relatively obscure Texas figures in the social studies course of study. If nothing else, it encourages young Texans to think of themselves as special and to resist assimilation into broader America, again to the benefit of diversity.
Addendum: Keller is a very good choice if you are playing Twenty Questions. It is unlikely if someone will ask whether you are a famous person connected to the idea of disabilities. And that reflects exactly why she should be kept in the curriculum.
Second addendum: Here are some other changes:
The board also voted to add back into the curriculum a reference to the “heroism” of the defenders of the Alamo, which had been recommended for elimination, as well as Moses’ influence on the writing of the founding documents, multiple references to “Judeo-Christian” values and a requirement that students explain how the “Arab rejection of the State of Israel has led to ongoing conflict” in the Middle East.
Barry Goldwater was removed as well, with Moses replacing Thomas Hobbes. There will be a chance to overturn these decisions by a final vote in November.
Some parts of this paper seem a priori implausible to me, and I don’t think the abstract puts the best foot forward for the paper, but these are such important issues I wanted to pass along the new piece by Magnus Henrekson and Johan Wennström. Here is the opener:
The Swedish school system suffers from profound problems with teacher recruitment and retention, knowledge decline,and grade inflation. Absenteeism is high, and psychiatric disorders have risen sharply among Swedish pupils in the last ten years. In this pioneering analysis of the consequences of combining institutionalized social constructivism with extensive marketization of education, we suggest that these problems regarding school quality are to no small extent a result of the Swedish school system’s unlikely combination of a postmodern view of truth and knowledge, the ensuing pedagogy of child-centered discovery, and market principles. Our study adds to the findings from previous attempts to study the effects of social-constructivist pedagogy in nonmarket contexts and yields the implication that caution is necessary for countries, notably the U.S., that have a tradition of social-constructivist practices in their education systems and are considering implementing or expanding market-based school reforms.
At the risk of sounding like Bryan Caplan, is schooling even effective enough for mistakes in method to be so fatal?
For the pointer to the paper I thank Daniel Klein.
You can put your comments on the main post here on this post.
As of today, we at Mercatus, led by me, are formally initiating a new project called Emergent Ventures.
Most importantly, here is the application page, and here is its opening summary:
We want to jumpstart high-reward ideas—moonshots in many cases—that advance prosperity, opportunity, liberty, and well-being. We welcome the unusual and the unorthodox.
Our goal is positive social change, but we do not mind if you make a profit from your project. (Indeed, a quick path to revenue self-sufficiency is a feature not a bug!)
Projects will either be fellowships or grants: fellowships involve time in residence at the Mercatus Center in Northern Virginia; grants are one-time or slightly staggered payments to support a project.
We encourage you to think big, but we also will consider very small grants or short fellowships if they might change the trajectory of your life. We encourage applications from all ages and all parts of the world.
Imagine you are the next Satoshi, trying to invent “the next Bitcoin.” Or say you are a budding public intellectual, seeking the reach and influence of Jordan Peterson, by building your social media presence. Or an 18-year-old social science prodigy, hoping to fly to Boston to meet a potential mentor. What about moving to Sacramento to write a quality blog covering California state government? I very much hope you will apply for a grant at Emergent Ventures. Most of all, I hope you are applying with ideas that we haven’t thought of yet.
We will be running Emergent Ventures with a minimum of overhead costs and a maximum of attention on upside potential from your projects. This means:
1. The money is given away, not spent on staff or creating a new self-perpetuating bureaucracy. That also keeps our incentives away from self-perpetuation and risk-aversion.
2. There is no committee to screen applications, or to keep the “crazy” ideas from getting to my desk. I will personally review each and every application, albeit with additional refereeing assistance from Mercatus, the Mercatus network, and my own personal network.
3. If you receive money, the “report back” requirements are minimal, typically a 1-2 page report a year or so later, and possibly future reports too. If you can’t show value or progress in a short report, you probably haven’t produced it.
4. The proposal you submit is limited to 1500 words, though with an option of supplementary documents. If you can’t get to the point and explain your plans succinctly, we will not fund you.
5. If you receive a grant, we at Mercatus — and also I personally — will do our very best to help you in your endeavors.
Think of the goal of Emergent Ventures as supporting new ideas and projects that are too difficult, too hard to measure, too unusual, too foreign, too small, or…too something to make their way through the usual foundation and philanthropic process.
If you wish, you also can think of Emergent Ventures as a bet on my own personal judgment. For some time to come, I will be devoting significant time to Emergent Ventures every single day (with a few exceptions, mostly travel-related). Most applications will be processed promptly.
If you are interested, as a donor, in supporting Emergent Ventures, please write to my email. It is a tax-deductible contribution. Within a short period of time we expect to have a total of $4 million lined up, from a very brilliant set of donors, but we hope to do more.
Those of you who are applying should use the main site (not my email), so I hope you will apply here.
If you tweet, write on Facebook, blog, write as a journalist, work as a professor or teacher — I am asking you to please do your best in helping us to publicize this endeavor.
Addendum: For the curious, here is one bit from the application: “…what is one mainstream or “consensus” view that you absolutely agree with? (This is our version of a “trick” question, reversing the now-fashionable contrarianism.)”
Scientists in developed countries provide nearly three times as many peer reviews per paper submitted as researchers in emerging nations, according to the largest ever survey of the practice.
The report — which surveyed more than 11,000 researchers worldwide — also finds a growing “reviewer fatigue”, with editors having to invite more reviewers to get each review done. The number rose from 1.9 invitations in 2013 to 2.4 in 2017…
The report notes that finding peer reviewers is becoming harder, even as the overall volume of publications rises globally (see ‘Is reviewer fatigue setting in?’).
File under “the cost disease strikes back.” Furthermore, it seems increasingly obvious that a lot of lesser journals just don’t matter, and that may discourage prospective referees from putting in the effort. And note:
In 2013–17, the United States contributed nearly 33% of peer reviews, and published 25.4% of articles worldwide. By contrast, emerging nations did 19% of peer reviews, and published 29% of all articles.
China stood out — the country accounted for 13.8% of scientific articles during the period, but did only 8.8% of reviews.
Learning to cope with man’s mortality is central to the teachings of the world’s major religions. However, very little is known about the impact of life-and-death trauma on religiosity. This study exploits a natural experiment in military deployments to estimate the causal effect of traumatic shocks on religiosity. We find that combat assignment is associated with a substantial increase in the probability that a serviceman subsequently attends religious services regularly and engages in private prayer. Combat-induced increases in religiosity are largest for enlisted servicemen, those under age 25, and servicemen wounded in combat. The physical and psychological burdens of war, as well as the presence of military chaplains in combat zones, emerge as possible mechanisms.
That is the topic of my latest Bloomberg column, here is one bit:
The world of the internet – fundamentally a world of information – is reporting on the failures of the elites 24/7. And while pretty much every opinion is available, some have more resonance than others. Is it not the case that, post-2008, most people really are skeptical of the ability of American elites to prevent the next financial crisis? Going even further back, I recall the optimism surrounding the Mideast peace talks of the 1970s or the Oslo accords of the 1990s. Hardly anyone honest has the same positive feelings about today’s efforts at peace talks.
Again, these impressions are based on actual information. An informed populace, however, can also be a cynical populace, and a cynical populace is willing to tolerate or maybe even support cynical leaders. The world might be better off with more of that naïve “moonshot” optimism of the 1960s.
…Instead of today’s swamp of negativism, do you not instead long for a few rousing hymns, a teary rom-com happy ending, a non-ironic exhibit of wonderful American landscape paintings? Yet all these cultural forms are largely on the wane. It’s no accident that the hugely successful romantic comedy “Crazy Rich Asians” is set in Singapore.
Homer > Socrates!
Five of the 16 men in the fourth round of singles at the United States Open are at least 6-5, and seven of the 16 women are at least 5-10…
The serve is the aspect in which undersized players most feel the height gap — they do not get to hit down on the ball and thus cannot generate the same power as taller players.
In earlier decades height was not nearly as important for tennis success. Yet:
Returning serve is one area in which shorter players tend to be better than the largest of their counterparts…
Flipkens said shorter players had to learn to analyze the game better, reading their opponent’s tosses to make the most of their return opportunities.
Austin said, “Anticipation is not an overt skill, but it is crucial to develop.”
Once the ball is in play, smaller players frequently rely on superior speed. “Everybody is taller than me,” the 5-1 Kurumi Nara said, “so I try to move well and more quickly than the other person.”
While bigger players are getting more agile, most still are not light on their feet. Low balls at the feet make them uncomfortable.
Glushko said taller players “don’t like the ball hit into the body,” and that applies to serves too.
Smaller players like Siegemund said the best tactic was to stand further back, allowing them to run down more balls — and to let the balls come down to a more manageable height. But to play defense and extend rallies, Seigemund said, smaller players must stay in top shape.
“All the players are fit, but we have to be fitter,” she said.
Some say the opposite approach may be more helpful. “The whole point of tennis is to rob your opponent of time,” Austin said. “You can do that with raw power or by hitting the ball early. Shorter players need to take the ball extra early.”
That is from Stuart Miller at the NYT. In addition to having some interest in tennis, I wonder to what extent this is a property of achievement in general. As the logic of meritocracy advances, and the pool of talent is searched more efficiently, perhaps individuals with a clear natural advantage — whether size, smarts, or something else — become a larger percentage of top achievers. Yet those wonderful “natural athletes” will have their weaknesses, just as Shaquille O’Neal had hands too large for the effective shooting of free throws. So a second but smaller tier opens up for individuals who have the smarts, versatility, and “training mentality” to fill in the gaps left open by the weaknesses of the most gifted. Who are the “taller” and “shorter” players in the economics profession? Politics? The world of tech? Are there any “short players” left in the top ranks of the world of chess? I don’t think so.
And maybe, for these reasons, late growth spurts are a source of competitive advantage?
I wrote this as a blog post for Penguin blog about ten years ago (when I guest-blogged for them), and it has disappeared from Google. So I thought I would serve up another, slightly different version to keep it circulating. Here goes:
Most of you should throw books out — your used copies that is — instead of gifting them. If you donate the otherwise-thrashed book somewhere, someone might read it. OK, maybe that person will read one more book in life but more likely that book will substitute for that person reading some other book instead. Or substitute for watching a wonderful movie.
So you have to ask yourself — this book — is it better on average than what an attracted reader might otherwise spend time with? Even within any particular point of view most books simply aren’t that good, and furthermore many books end up being wrong. These books are traps for the unwary, and furthermore gifting the book puts some sentimental value on it, thereby increasing the chance that it is read. Gift very selectively! And ponder the margin.
You should be most likely to give book gifts to people whose reading taste you don’t respect very much. That said, sometimes a very bad book can be useful because it might appeal to “bad” readers and lure them away from even worse books. Please make all the appropriate calculations.
Alternatively, if a rational friend of yours gives you a book, perhaps you should feel a little insulted.
How good is the very best next book that you haven’t read but maybe are on the verge of picking up? So many choices in life hinge on that neglected variable.
Toss it I say!
Here is the transcript and audio, definitely recommended. Here is part of the summary:
She and Tyler explore her ideas about the stifling effect of political correctness and more, including why its dominant form may come from the political right, how higher education got screwed up, strands of thought favored by the Internet and Youtube, overrated and underrated Australian cities, Aussie blokes, and more.
Here is an excerpt:
COWEN: When did political correctness become a major issue, or become a major issue again? And why do you think it happened exactly then?
LEHMANN: That’s a good question, and I don’t know if I have the answer. I know that there were lots of debates around political correctness in the early ’90s, for example.
COWEN: Yes, and it seems to fade away and then come back.
I’ve noticed in my own life that I started noticing political correctness around 2007. At the time, I thought it had something to do with the business model of Internet publishing.
That was when Gawker and the blog Jezebel was really popular. It was established in 2007, and then it got very popular over the next couple of years. I thought that there were a lot of clickbait kind of articles promoting these really simplistic black-and-white narratives of oppression.
Unless one had reasonable critical thinking skills, I could see how young people could be influenced by that kind of content coming out. I think there’s something to do with the Internet and the way the media has had to adapt to this new business model where you have to drive . . . You have to get lots of views, lots of hits, millions more than you would with the newspapers.
I think it’s something to do with that, but that’s probably just one variable in many other factors.
COWEN: What do you think of the hypothesis that political correctness is a kind of virus that’s hijacked the left? It’s figured out some kind of weak entry point, and it’s come in and taken over parts of it, and it will bring down many victims with it, but actually, it’s crippling the left.
LEHMANN: Yep, yeah.
COWEN: True or false?
LEHMANN: Probably true.
COWEN: If one objects to that argument, we should in a sense encourage more of it, at least if we’re being pure utilitarians, or not?
COWEN: Probably in the media? In general, intellectual life, but if you take, say, the United States as a whole, do you think it’s left-wing or right-wing political correctness that’s stronger and more destructive?
LEHMANN: Yeah, it’s probably right-wing political correctness.
A question from me:
COWEN: I’ve been speaking about the right in aggregate terms, but if you think of the effect of the Internet, which strands of the right do you think are favored, and which do you think are falling away because of Internet discourse? Because it shouldn’t favor it all equally, correct?
We also cover Australia vs. New Zealand, the masculine ethos of Australia and its origins, why PC is different in Australia, the movie Lantana (which we both strongly recommend), and yes Australian fashion.
“Realizing this, we decided to turn the standard solution to self-control on its head: What if instead of seeking advice, we asked struggling people to give it,” write Eskreis-Winkler and Fishbach. To answer this question, they conducted a series of experiments that appointed people struggling with self-control to advise others on the very problems they themselves were encountering. The population samples they studied included unemployed adults struggling to find a job, adults struggling to save money, adults struggling with anger management, and children falling behind in school.
“Although giving advice confers no new information to the advice giver, we thought it would increase the advice giver’s confidence,” they write. “Confidence in one’s ability can galvanize motivation and achievement even more than actual ability.”
This is only part one for the class, do not panic over whatever you think might be completely left out. That said, suggested additions are welcome, here goes:
Bresnahan, Timothy F. “Competition and Collusion in the American Automobile Industry: the 1955 Price War,” Journal of Industrial Economics, 1987, 35(4), 457-82.
Bresnahan, Timothy and Reiss, Peter C. “Entry and Competition in Concentrated Markets,” Journal of Political Economy, (1991), 99(5), 977-1009.
Asker, John, “A Study of the Internal Organization of a Bidding Cartel,” American Economic Review, (June 2010), 724-762.
Whinston, Michael D., “Antitrust Policy Toward Horizontal Mergers,” Handbook of Industrial Organization, vol.III, chapter 36, see also chapter 35 by John Sutton.
“Benefits of Competition and Indicators of Market Power,” Council of Economic Advisors, April 2016.
Jan De Loecker and Jan Eeckhout, “The Rise of Market Power and its Macroeconomic Implications,” http://www.janeeckhout.com/wp-content/uploads/RMP.pdf. My comment on it is here: https://marginalrevolution.com/marginalrevolution/2017/08/rise-market-power.html
Me on intangible capital, https://marginalrevolution.com/marginalrevolution/2017/09/intangible-investment-monopoly-profits.html.
Traina, James. “Is Aggregate Market Power Increasing?: Production Trends Using Financial Statements,” https://research.chicagobooth.edu/-/media/research/stigler/pdfs/workingpapers/17isaggregatemarketpowerincreasing.pdf
Shapiro, Carl. “Antitrust in a Time of Populism.” UC Berkeley, working draft from 24 October 2017, forthcoming in International Journal of Industrial Organization.
Klein, Benjamin and Leffler, Keith. “The Role of Market Forces in Assuring Contractual Performance.” Journal of Political Economy 89 (1981): 615-641.
Breit, William. “Resale Price Maintenance: What do Economists Know and When Did They Know It?” Journal of Institutional and Theoretical Economics (1991).
Bogdan Genchev, and Julie Holland Mortimer. “Empirical Evidence on Conditional Pricing Practices.” NBER working paper 22313, June 2016.
Sproul, Michael. “Antitrust and Prices.” Journal of Political Economy (August 1993): 741-754.
McCutcheon, Barbara. “Do Meetings in Smoke-Filled Rooms Facilitate Collusion?” Journal of Political Economy (April 1997): 336-350.
Crandall, Robert and Winston, Clifford, “Does Antitrust Improve Consumer Welfare?: Assessing the Evidence,” Journal of Economic Perspectives (Fall 2003), 3-26, available at http://www.brookings.org/views/articles/2003crandallwinston.htm.
FTC, Bureau of Competition, website, http://www.ftc.gov/bc/index.shtml., an optional browse, perhaps read about some current cases and also read the merger guidelines.
Parente, Stephen L. and Prescott, Edward. “Monopoly Rights: A Barrier to Riches.” American Economic Review 89, 5 (December 1999): 1216-1233.
Demsetz, Harold. “Why Regulate Utilities?” Journal of Law and Economics (April 1968): 347-359.
Armstrong, Mark and Sappington, David, “Recent Developments in the Theory of Regulation,” Handbook of Industrial Organization, chapter 27, also on-line.
Shleifer, Andrei. “State vs. Private Ownership.” Journal of Economic Perspectives (Fall 1998): 133-151.
Xavier Gabaix and David Laibson, “Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets,” http://papers.ssrn.com/sol3/papers.cfm?abstract_id=728545.
Strictly optional most of you shouldn’t read this: Ariel Pakes and dynamic computational approaches to modeling oligopoly: http://www.economics.harvard.edu/faculty/pakes/files/Pakes-Fershtman-8-2010.pdf
Economics of Tech
Farrell, Joseph and Klemperer, Paul, “Coordination and Lock-In: Competition with Switching Costs and Network Effects,” Handbook of Industrial Organization, vol.III, chapter 31, also on-line.
Weyl, E. Glenn. “A Price Theory of Multi-Sided Platforms.” American Economic Review, September 2010, 100, 4, 1642-1672.
Tech companies as platforms, Tyler Cowen chapter, to be distributed.
Gompers, Paul and Lerner, Josh. “The Venture Capital Revolution.” Journal of Economic Perspectives (Spring 2001): 145-168.
Paul Graham, essays, http://www.paulgraham.com/articles.html, and on Google itself, http://www.slate.com/blogs/blogs/thewrongstuff/archive/2010/08/03/error-message-google-research-director-peter-norvig-on-being-wrong.aspx
Acemoglu, Daron and Autor, David, “Skills, Tasks, and Technologies: Implications for Employment and Earnings,” http://econ-www.mit.edu/files/5607
Robert J. Gordon and Ian Dew-Becker, “Unresolved Issues in the Rise of American Inequality,”http://www.people.fas.harvard.edu/~idew/papers/BPEA_final_ineq.pdf
Song, Jae, David J. Price, Fatih Guvenen, and Nicholas Bloom. “Firming Up Inequality,” CEP discussion Paper no. 1354, May 2015.
Andrews, Dan, Chiara Criscuolo and Peter N. Gal. “Frontier firms, Technology Diffusion and Public Policy: Micro Evidence from OECD Countries.” OECD working paper, 2015.
Mueller, Holger M., Paige Ouimet, and Elena Simintzi. “Wage Inequality and Firm Growth.” Centre for Economic Policy Research, working paper 2015.
Readings on blockchain governance, to be distributed.
Haltiwanger, John, Ian Hathaway, and Javier Miranda. “Declining Business Dynamism in the U.S. High-Technology Sector.” Ewing Marion Kauffman Foundation, February 2014.
Organization and capital structure
Ronald Coase and Oliver Williamson on the firm, if you haven’t already read them, but limited doses should suffice.
Gibbons, Robert, “Four Formal(izable) Theories of the Firm,” on-line at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=596864.
Van den Steen, Eric, “Interpersonal Authority in a Theory of the Firm,” American Economic Review, 2010, 100:1, 466-490.
Lazear, Edward P. “Leadership: A Personnel Economics Approach,” NBER Working Paper 15918, 2010.
Oyer, Paul and Schaefer, Scott, “Personnel Economics: Hiring and Incentives,” NBER Working Paper 15977, 2010.
Tyler Cowen chapter on CEO pay, to be distributed.
Cowen, Tyler, Google lecture on prizes, on YouTube.
Ben-David, Itzhak, and John R. Graham and Campbell R. Harvey, “Managerial Miscalibration,” NBER working paper 16215, July 2010.
Glenn Ellison, “Bounded rationality in Industrial Organization,” http://cemmap.ifs.org.uk/papers/vol2_chap5.pdf
Miller, Merton, and commentators. “The Modigliani-Miller Propositions After Thirty Years,” and comments, Journal of Economic Perspectives (Fall 1988): 99-158.
Myers, Stewart. “Capital Structure.” Journal of Economic Perspectives (Spring 2001): 81-102.
Hansemann, Henry. “The Role of Non-Profit Enterprise.” Yale Law Journal (1980): 835-901.
Kotchen, Matthew J. and Moon, Jon Jungbien, “Corporate Social Responsibility for Irresponsibility,” NBER working paper 17254, July 2011.
Strictly optional but recommended for the serious: Ponder reading some books on competitive strategy, for MBA students. Here is one list of recommendations: http://www.linkedin.com/answers/product-management/positioning/PRM_PST/20259-135826
American Economic Review Symposium, May 2010, starts with “Why do Firms in Developing Countries Have Low Productivity?” runs pp.620-633.
Dani Rodrik, “A Surprising Convergence Result,” http://rodrik.typepad.com/dani_rodriks_weblog/2011/06/a-surprising-convergence-result.html, and his paper here http://www.hks.harvard.edu/fs/drodrik/Research%20papers/The%20Future%20of%20Economic%20Convergence%20rev2.pdf
Serguey Braguinsky, Lee G. Branstetter, and Andre Regateiro, “The Incredible Shrinking Portuguese Firm,” http://papers.nber.org/papers/w17265#fromrss.
Nicholas Bloom, Raffaella Sadun, and John Van Reenen, “Recent Advances in the Empirics of Organizational Economics,” http://cep.lse.ac.uk/pubs/download/dp0970.pdf.
Nicholas Bloom, Raffaella Sadun, and John Van Reenen, the slides for “Americans do I.T. Better: US Multinationals and the Productivity Miracle,” http://www.people.hbs.edu/rsadun/ADITB/ADIBslides.pdf, the paper is here http://www.stanford.edu/~nbloom/ADIB.pdf but I recommend focusing on the slides.
Bloom, Nicholas, Raffaella Sadun, and John Van Reenen. “Management as a Technology?” National Bureau of Economic Research working paper 22327, June 2016.
Syerson, Chad “What Determines Productivity?” Journal of Economic Literature, June 2011, XLIX, 2, 326-365.
David Lagakos, “Explaining Cross-Country Productivity Differences in Retail Trade,” Journal of Political Economy, April 2016, 124, 2, 1-49.
Casselman, Ben. “Corporate America Hasn’t Been Disrupted.” FiveThirtyEight, August 8, 2014.
Decker, Ryan and John Haltiwanger, Ron S. Jarmin, and Javier Miranda. “Where Has all the Skewness Gone? The Decline in High-Growth (Young) Firms in the U.S. National Bureau of Economic Research working paper 21776, December 2015.
Furman, Jason and Peter Orszag. “A Firm-Level Perspective on the Role of Rents in the Rise in Inequality.” October 16, 2015.
Furman, Jason. ”Business Investment in the United States: Facts, Explanations, Puzzles, and Policy.” Remarks delivered at the Progressive Policy Institute, September 30, 2015, on-line at https://m.whitehouse.gov/sites/default/files/page/files/20150930_business_investment_in_the_united_states.pdf.
Scharfstein, David S. and Stein, Jeremy C. “Herd Behavior and Investment.” American Economic Review 80 (June 1990): 465-479.
Stein, Jeremy C. “Efficient Capital Markets, Inefficient Firms: A Model of Myopic Corporate Behavior.” Quarterly Journal of Economics 104 (November 1989): 655-670.
Sectors: finance, health care, education, others
Gorton, Gary B. “Slapped in the Face by the Invisible Hand: Banking and the Panic of 2007,” http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1401882, published on-line in 2009.
Erel, Isil, Nadault, Taylor D., and Stulz, Rene M., “Why Did U.S. Banks Invest in Highly-Rated Securitization Tranches?” NBER Working Paper 17269, August 2011.
Healy, Kieran. “The Persistence of the Old Regime.” Crooked Timber blog, August 6, 2014.
More to be added, depending on your interests.
Diether W. Beuermann and C. Kirabo Jackson report:
Recent studies document that, in many cases, sought after schools do not improve student test scores. Three explanations are that (i) existing studies identify local average treatment effects that do not generalize to the average student, (ii) parents cannot discern schools’ causal impacts, and (iii) parents value schools that improve outcomes not well measured by test scores. To shed light on this, we employ administrative and survey data from Barbados. Using discrete choice models, we document that most parents have strong preferences for the same schools. Using a regression-discontinuity design, we estimate the causal impact of attending a preferred school on a broad array of outcomes. As found in other settings, preferred schools have better peers, but do not improve short-run test scores. We implement a new statistical test and find that this null effect is not due to school impacts being different for marginal students than for the average student. Looking at longer-run outcomes, for girls, preferred schools reduce teen motherhood, increase educational attainment, increase earnings, and improve health. In contrast, for boys, the results are mixed. The pattern for girls is consistent with parents valuing school impacts on outcomes not well measured by test scores, while the pattern for boys is consistent with parents being unable to identify schools’ causal impacts. Our results indicate that impacts on test scores may be an incomplete measure of school quality.
A neglected point…Arnold Kling, telephone!
Using a unique data set on the universe of assistant professor hires at top-50 economics departments from 1980-2005, we show that the adoption of gender-neutral tenure clock stopping policies substantially reduced female tenure rates while substantially increasing male tenure rates.
That is from Heather Antecol, Kelly Bedard, and Jenna Stearns in a forthcoming AER, via Claire Lehmann
The literature that has previously shown that boys outperform girls in math tests has failed to explain the underlying causes of the phenomenon. This math gender gap has been documented to vary across countries, and shown to grow as students advance through school. In this paper I suggest that these patterns may be explained by sample selection caused by gender differences in schooling’s opportunity costs, which lead lower-achieving males to drop out. I present and test the implications of a labor supply model that examines the opportunity cost of school attendance and, thereby, the observed math gender gap. Using an exogenous policy change, the launch of a conditional cash transfers program in Colombia,
I estimate that sample selection explains between 50 percent and 60 percent of the gap. Estimates of non-parametric bounds show that selection in the lower quantiles of the male distribution explains a significant portion of the gap.