Here is the announcement, here is the opening paragraph of the summary:
Emi Nakamura is an empirical macroeconomist who has greatly increased our understanding of price-setting by firms and the effects of monetary and fiscal policies. Emi’s distinctive approach is notable for its creativity in suggesting new sources of data to address long-standing questions in macroeconomics. The datasets she uses are more disaggregated, or higher-frequency, or extending over a longer historical period, than the postwar, quarterly, aggregate time series that have been the basis for most prior work on these topics in empirical macroeconomics. Her work has required painstaking analysis of data sources not previously exploited, and at the same time displays a sophisticated understanding of the alternative theoretical models that the data can be used to distinguish.
Congratulations! And there is much more of interest at the link. And here are previous (and numerous) MR posts on her work.
Get your applications in asap for the public choice outreach conference, a crash course in public choice for students from all fields. A great chance to hear from Tyler, Robin Hanson, Shruti Rajagopolan and many others.
Julia interviews me, definitely recommended.
That is the already-bestselling graphic novel by Bryan Caplan and Zach Weinersmith, and I would just like to say it is a phenomenal achievement. It is a landmark in economic education, how to present economic ideas, and the integration of economic analysis and graphic visuals. I picked it up not knowing what to expect, and was blown away by the execution.
To be clear, I don’t myself favor a policy of open borders, instead preferring lots more legal immigration done wisely. But that’s not really the central issue here, as I think Caplan and Weinersmith are revolutionizing how to present economic (and other?) ideas. Furthermore, they do respond in detail to my main objections to the open borders idea, namely the cultural problems with so many foreigners coming to the United States (even if I am not convinced, but that is for another blog post). Even if you disagree with open borders, this book is one of the very best explainers of the gains from trade idea ever produced, and it will teach virtually anyone a truly significant amount about the immigration issue, as well as economic analytics more generally.
There is more actual substance in this book than in many a purely written tome.
It will be out in October, you can pre-order it here.
India is changing very rapidly and launching new programs and policies at breakneck pace–some reasonably well thought out, others not so well thought out. Historically, India has relied on a small cadre of IAS super-professionals–the basic structure goes back to Colonial times when a handful of Englishmen ruled the country–who are promoted internally and are expected to be generalists capable of handling any and all tasks. The quality of the IAS is unparalleled, of the 1 million people who typically write the Civil Services Exam the IAS accepts only about 180 candidates annually and there are less than 5000 IAS officers in total. But 5,000 generalists are not capable of running a country of over 1 billion people and and India’s bureaucracy as a whole is widely regarded as being slow and of low quality. The quality of the bureaucracy must increase, deep experts in policy must be encouraged and brought in on a lateral basis and there needs to be greater circulation with and understanding of the private sector.
The Indian government has started to show significant interest in hiring people from outside the bureaucratic ranks. NITI Aayog, the in-house government think tank, which replaced the Planning Commission, has hired young graduates from the world’s top universities as policy consultants. The Prime Minister Fellowship Scheme is an interesting initiative to attract young people to policymaking. A range of government departments and ministries do hire young, bright graduates in various disciplines to engage in research and advisory services. In fact, in a marked departure from tradition, the Indian government recently recruited 9 people working in the private sector into their joint secretary level (senior bureaucrats). Nine people doesn’t sound like a lot but these are hires at the top of the pyramid and
[T]his is perhaps the first time that a large of group of experts with domain knowledge will enter the government through the lateral-entry process.
The demand for policy professionals is there. What about the supply? I am enthusiastic about The Indian School of Public Policy, India’s newest policy school and the first to offer a post-graduate program in policy design and management. The ISPP has brought academics, policymakers and business professionals and philanthropists together to build a world-class policy school. I am an academic adviser to the school along with Arvind Panagariya, Shamika Ravi, Ajay Shah and others. The faculty includes Amitabh Mattoo, Dipankar Gupta, Parth J. Shah and Seema Chowdhry among others. Nandan Nilekani, Vallabh Bhansali and Jerry Rao are among the school’s supporters.
The ISPP opens this year with a one-year postgraduate program in Policy, Design & Management. More information here.
But Ms McRae is also concerned that programmes like Lambda School, though well-meaning, risk undermining existing educational institutions by offering a quicker route to work.
That is from The Economist coverage of Lambda School.
Graduate students experience depression and anxiety at six times the rate of the general population, Gumport mentioned.
A study produced by Paul Barreira, director of Harvard’s University Health Service, found that “the prevalence of depression and anxiety symptoms among economics Ph.D. students is comparable to the prevalence found in incarcerated populations.”
Most of the article (the top segment) is an interesting consideration of the economics of Stanford University Press.
That is the topic of my latest Bloomberg column, here is one bit:
The first new study focuses on performance in high school, and the startling result is this: Girls with more exposure to high-achieving boys (as proxied by parental education) have a smaller chance of receiving a bachelor’s degree. Furthermore, they do worse in math and science, are less likely to join the labor force, and more likely to have more children, which in turn may limit their later career prospects.
Those are disturbing results. Exposure to high-achieving peers is normally expected to be a plus, not a minus. It is what parents are trying to do when they place their children into better schools, or when school systems work hard to attract better students.
A second new study finds that even blind review does not avoid gender bias in the processing of grant proposal applications, drawn from data from the Gates Foundation. It turns out that women and men have different communications styles, with the women more likely to use narrow words, and the men more likely to use broader ones. And reviewers, it turns out, favor broad words, which are more commonly associated with more sweeping claims, and disfavor the use of too many narrow words.
The net result is that “even in an anonymous review process, there is a robust negative relationship between female applicants and the scores assigned by reviewers.” This discrepancy persists even after controlling for subject matter and other variables. Notably, however, it disappears when controlling for different rhetorical styles.
These two studies probably are connected to each other. While the two sets of researchers do not address each other’s claims, it is not a huge leap to think of broader, more sweeping language as reflecting a kind of confidence, whether merited or not. Narrow words, on the other hand, may reflect a lower level of confidence or a greater sense of rhetorical modesty. Not only might lower confidence hurt many women in life, but a greater unwillingness to signal confidence — regardless of whether it’s genuine — might hurt them too.
There is much more at the link, recommended.
She requires no introduction, this conversation involved a bit of slapstick, so unlike many of the others it is better heard than read. Here is the audio and transcript. Here is the opening:
COWEN: Just to start with some basic questions about Canada, which you’ve written on for decades — what defines the Canadian sense of humor?
MARGARET ATWOOD: Wow. [laughs] What defines the Canadian sense of humor? I think it’s a bit Scottish.
COWEN: How so?
ATWOOD: Well, it’s kind of ironic. It depends on what part of Canada you’re in. I think the further west you go, the less of a sense of humor they have.
ATWOOD: But that’s just my own personal opinion. My family’s from Nova Scotia, so that’s as far east as you can get. And they go in for deadpan lying.
COWEN: In 1974, you wrote, “The Canadian sense of humor was often obsessed with the issue of being provincial versus being cosmopolitan.”
COWEN: You think that’s still true?
ATWOOD: Depends again. You know, Canada’s really big. In fact, there’s a song called “Canada’s Really Big.” You can find it on the internet. It’s by a group called the Arrogant Worms. That kind of sums up Canada right there for you.
The burden of the song is that all of these other countries have got all of these other things, but what Canada has is, it’s really big. It is, in fact, very big. Therefore, it’s very hard to say what is particularly Canadian. It’s a bit like the US. Which part of the US is the US? What is the most US thing —
COWEN: Maybe it’s Knoxville, Tennessee, right now. Right? The Southeast.
ATWOOD: You think?
COWEN: But it used to be Cleveland, Ohio.
ATWOOD: Did it?
COWEN: Center of manufacturing.
ATWOOD: When was that? [laughs] When was that?
COWEN: If you look at where the baseball teams are, you see what the US —
And from her:
ATWOOD: Yeah, so what is the most Canadian thing about Canada? The most Canadian thing about Canada is that when they ran a contest that went “Finish this sentence. As American as apple pie. As Canadian as blank,” the winning answer was “As Canadian as plausible under the circumstances.”
And a question from me:
COWEN: But you’ve spoken out in favor of the cultural exception being part of the NAFTA treaty that protects Canadian cultural industries. Is it strange to think that having more than half the [Toronto] population being foreign born is not a threat to Canadian culture, but that being able to buy a copy of the New York Times in Canada is a threat?
In addition to Canada, we talk about the Bible, Shakespeare, ghosts, her work habits, Afghanistan, academia, Peter the Great, writing for the future, H.G. Wells, her heretical feminism, and much much more.
Northwestern Ph.D, Brown post doc, Joel Mokyr student. Here is her job market paper:
Job Market Paper
The Political Economy of Famine: the Ukrainian Famine of 1933 Download Job Market Paper (pdf)
Abstract: The famine of 1932–1933 in Ukraine killed as many as 2.6 million people out of a population of approximately 30 million. Three main explanations have been offered: negative weather shock, poor economic policies, and genocide. This paper uses variation in exposure to poor government policies and in ethnic composition within Ukraine to study the impact of policies on mortality, and the relationship between ethnic composition and mortality. It documents that (1) the data do not support the negative weather shock explanation: 1931 and 1932 weather predicts harvest roughly equal to the 1925 — 1929 average; (2) bad government policies (collectivization and the lack of favored industries) significantly increased mortality; (3) collectivization increased mortality due to drop in production on collective farms and not due to overextraction from collectives (although the evidence is indirect); (4) back-of-the-envelope calculations show that collectivization explains at least 31\% of excess deaths; (5) ethnic Ukrainians seem more likely to die, even after controlling for exposure to poor Soviet economic policies; (6) Ukrainians were more exposed to policies that later led to mortality (collectivization and the lack of favored industries); (7) enforcement of government policies did not vary with ethnic composition (e.g., there is no evidence that collectivization was enforced more harshly on Ukrainians). These results provide several important takeaways. Most importantly, the evidence is consistent with both sides of the debate (economic policies vs genocide). (1) backs those arguing that the famine was man-made. (2) — (4) support those who argue that mortality was due to bad policy. (5) is consistent with those who argue that ethnic Ukrainians were targeted. For (6) and (7) to support genocide, it has to be the case that Stalin had the foresight that his policies would fail and lead to famine mortality years after they were introduced (and therefore disproportionately exposed Ukrainians to them).
Cultural economics and economic history, St. Gallen Ph.D, Harvard post doc, co-author with Joe Henrich.
Job market paper, “Catholic Church, Kin Networks, and Institutional Development“:
Political institutions vary widely around the world, yet the origin of this variation is not well understood. This study tests the hypothesis that the Catholic Church’s medieval marriage policies dissolved extended kin networks and thereby fostered inclusive institutions. In a difference-in-difference setting, I demonstrate that exposure to the Church predicts the formation of inclusive, self-governed commune cities before the year 1500CE. Moreover, within medieval Christian Europe, stricter regional and temporal cousin marriage prohibitions are likewise positively associated with communes. Strengthening this finding, I show that longer Church exposure predicts lower cousin marriage rates; in turn, lower cousin marriage rates predict higher civicness and more inclusive institutions today. These associations hold at the regional, ethnicity and country level. Twentieth-century cousin marriage rates explain more than 50 percent of variation in democracy across countries today.
Harvard Ph.D, assistant professor of economics at University of Toronto, he works in the new field genonomics and has co-authored with David Cesarini. Here is his presentation on GWAS of risk tolerance:
Here is his paper (with co-authors) “Genome-wide association analyses of risk tolerance and risky behaviors in over one million individuals identify hundreds of loci and shared genetic influences.”
I am very much looking forward to their arrival, they all seem like great colleagues, and I am honored to have played a role on the recruiting committee.
COWEN: You’ve trained in chemistry, physics, electrical engineering, and neuroscience, correct?
BOYDEN: Yeah, I started college at 14, and I focused on chemistry for two years, and then I transferred to MIT, where then I switched into physics and electrical engineering, and that’s when I worked on quantum computing.
COWEN: Five areas, actually. Maybe more.
BOYDEN: Guess so.
COWEN: Should more people do that? Not the median student, but more people?
BOYDEN: It’s a good question.
COWEN: Are we less creative if all the parts of our mind become allies? Maybe I’m afraid this will happen to me, that I have rebellious parts of my mind, and they force me to do more interesting things, or they introduce randomness or variety into my life.
BOYDEN: This is a question that I think is going to become more and more urgent as neurotechnology advances. Already there are questions about attention-focusing drugs like Ritalin or Adderall. Maybe they make people more focused, but are you sacrificing some of the wandering and creativity that might exist in the brain and be very important for not only personal productivity but the future of humanity?
I think what we’re realizing is that when you intervene with the brain, even with brain stimulation, you can cause unpredictable side effects. For example, there’s a part of the brain called the dorsolateral prefrontal cortex. That’s actually an FDA-approved site for stimulation with noninvasive magnetic pulses to treat depression. But patients, when they’re stimulated here . . . People have done studies. It can also change things like trust. It can change things like driving ability.
There’s only so many brain regions, but there’s millions of things we do. Of course, intervening with one region might change many things.
COWEN: What kind of students are you likely to hire that your peers would not hire?
BOYDEN: Well, I really try to get to know people at a deep level over a long period of time, and then to see how their unique background and interests might change the field for the better.
I have people in my group who are professional neurosurgeons, and then, as I mentioned, I have college dropouts, and I have people who . . . We recently published a paper where we ran the brain expansion process in reverse. So take the baby diaper polymer, add water to expand it, and then you can basically laser-print stuff inside of it, and then collapse it down, and you get a piece of nanotechnology.
The co–first author of that paper doesn’t have a scientific laboratory background. He was a professional photographer before he joined my group. But we started talking, and it turns out, if you’re a professional photographer, you know a lot of very practical chemistry. It turns out that our big demo — and why the paper got so much attention — was we made metal nanowires, and the way we did it was using a chemistry not unlike what you do in photography, which is a silver chemistry.
COWEN: Let’s say you had $10 billion or $20 billion a year, and you would control your own agency, and you were starting all over again, but current institutions stay in place. What would you do with it? How would you structure your grants? You’re in charge. You’re the board. You do it.
COWEN: If you’re designing architecture for science, what do you do? What do you change? What would you improve? Because presumably most of it is not designed for science. Maybe none of it is.
BOYDEN: I’ve been thinking about this a lot, actually, lately. There are different philosophies, like “We should have open offices so everybody can see and talk to each other.” Or “That’s wrong. You should have closed spaces so people can think and have quiet time.” What I think is actually quite interesting is this concept that maybe neither is the right approach. You might want to think about having sort of an ecosystem of environments.
My group — we’re partly over at the Media Lab, which has a lot of very open environments, and our other part of the group is in a classical sort of neuroscience laboratory with offices and small rooms where we park microscopes and stuff like that. I actually get a lot of productivity out of switching environments in a deliberate way.
There is much more of interest at the link.
Significant differences between genetic correlations indicated that, the genetic variants associated with income are related to better mental health than those linked to educational attainment (another commonly-used marker of SEP). Finally, we were able to predict 2.5% of income differences using genetic data alone in an independent sample. These results are important for understanding the observed socioeconomic inequalities in Great Britain today.
Educational attainment shows a larger genetic overlap with subjective wellbeing than IQ does (rgs = .11 & .03, respectively), while income shows a larger genetic overlap with subjective wellbeing than both education or IQ (rg = .32).
All via Richard Harper.
An excellent new working paper uses genetic markers for educational attainment to track students through the high school math curriculum to better understand the role of nature, nurture and their interaction in math attainment. The paper begins with an earlier genome wide association study (GWAS) of 1.1 million people that found that a polygenic score could be used to (modestly) predict college completion rates. Panel (a) in the figure at right shows how college completion is five times higher in individuals with an education polygenic score (ed-PGS) in the highest quintile compared to individuals with scores in the lowest quintile; panel b shows that ed-PGS is at least as good as household income at predicting college attainment but not quite as good as knowing the educational level of the parents.
Of the million plus individuals with ed-PGS, some 3,635 came from European-heritage individuals who were entering US high school students in 1994-1995 (the Add Health sample). Harden, Domingue et al. take the ed-PGS of these individuals and match them up with data from their high school curricula and their student transcripts.
What they find is math attainment is a combination of nature and nurture. First, students with higher ed-PGS are more likely to be tracked into advanced math classes beginning in grade 9. (Higher ed-PGS scores are also associated with higher socio-economic status families and schools but these differences persist even after controlling for family and school SES or looking only at variation within schools.) Higher ed-PGS also predicts math persistence in the following years. The following diagram tracks high ed-PGS (blue) with lower ed-PGS (brown) over high school curricula/years and post high-school. Note that by grade 9 there is substantial tracking and some cross-over but mostly (it appears to me) in high-PGS students who fall off-track (note in particular the big drop off of blue students from Pre-Calculus to None in Grade 12).
Nature, however, is modified by nurture. “Students had higher returns to their genetic propensities for educational attainment in higher-status schools.” Higher ed-PGS students in lower SES schools were less likely to be tracked into higher-math classes and lower-SES students were less likely to persist in such classes.
It would be a mistake, however, to conclude that higher-SES schools are uniformly better without understanding the tradoffs. Lower SES schools have fewer high-ability students which makes it difficult to run advanced math classes. Perhaps the lesson here is that bigger schools are better, particularly bigger schools in poorer SES districts. A big school in a low SES district can still afford an advanced math curriculum.
The authors also suggest that more students could take advanced math classes. Even among the top 2% of students as measured by ed-PGS only 31% took Calculus in the high-SES schools and only 24% in the low SES schools.It’s not clear to me, however, that high-PGS necessitates high math achievement. Notice that many high-PGS students take pre-calc in Grade 11 but then no math in Grade 12 but they still go on to college and masters degrees. Lots of highly educated people are not highly-educated in math. Still it wouldn’t be a surprise if there were more math talent in the pool.
There is plenty to criticize in the paper. The measure of SES status by school (average mother’s educational attainment) leaves something to be desired. Moreover, there are indirect genetic effects, which the authors understand and discuss but don’t have the data to test. An indirect genetic effect occurs when a gene shared by parent and child has no direct effect on educational capacity (i.e. it’s not a gene for say neuronal development) but has an indirect “effect” because it is correlated with something that parent’s with that gene do to modify the environment of their children. Nevertheless, genes do have direct effects and this paper forces us to acknowledge that behavioral genetics has implications for policy.
Should every student be genotyped and tracked? On the one hand, that sounds horrible. On the other hand, it would identify more students of high ability, especially from low SES backgrounds. Genetics tells us something about a student’s potential and shouldn’t we try to maximize potential?
For homework, work out the equilibrium for inequality, rewatch the criminally underrated GATTACA and for an even more horrifying picture of the future, pay careful attention to the Mirrlees model of optimal income taxation.
That is the topic of my new Bloomberg column, here is one excerpt:
To be sure, there are problems with the idea of equitizing human capital. For instance, what if less talented, less hard-working individuals turn out to be the most likely to sign away part of their future income? That creates a problem that economists call “adverse selection.” This is a real issue, but it hasn’t stopped companies from selling equity and startups from selling venture capital shares. As for the students, due diligence and talent measurement may suffice to identify enough good students with bright prospects.
There are also genuine questions about how far this model can be extended. The demand for labor is robust in information technology, but would a similar system work for philosophy professors or prospective musicians? In both cases incomes are undoubtedly lower, motivations non-pecuniary, and the chances for real success more remote. The company Pando Pooling, meanwhile, is trying equitization with minor league baseball players. The importance of raw baseball talent may be so paramount, however, that companies cannot much improve the labor market prospects of their clients.
Note also that we already equitize each other’s labor in many non-explicit, non-corporate ways. If two economists write a paper together, for example, each is tying his or her fate somewhat to the other. And if two people in business decide to share networks or trade favors, each has a stake in the success of the other.
The piece also consider Lambda School in San Francisco as an institution trying to operationalize this practice.