Category: Education

Death, Trauma and God: The Effect of Military Deployments on Religiosity

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 from Resul Cesur, Travis Freidman, and Joseph J. Sabia.

Don’t blame the fake news, it’s the truth that is the problem

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!

Height, size, and tennis

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?

Why you should hesitate to give books as gifts and instead just throw them out

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!

My Conversation with Claire Lehmann of Quillette

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.

LEHMANN: Yeah. That’s when Camille Paglia was talking about PC, and Robert Hughes had a book, The Culture of Complaint.

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?

And:

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.

How to motivate the unmotivated

“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.”

Here is more from Leah Fessler, via the excellent Samir Varma.  While these results should not be considered as confirmed, I personally believe in them enough that I often act on them.

My Fall Industrial Organization reading list

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:

Competition

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

http://www.economics.harvard.edu/faculty/pakes/files/handbookIO9.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

 

Production

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.

http://evansoltas.com/2016/05/07/pro-business-reform-pro-growth/

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.

Do parents know best about schooling?

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!

Gender-neutral tenure clock stopping doesn’t work

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 Economics behind the Math Gender Gap

Juan Sebastián Muñoz (the economist, not the golfer) has a new paper on this topic, focusing on Colombia:

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.

More on statistical discrimination

A few of you have raised objections to my recent statistical discrimination hypothesis on the grounds that, if it were true, minority group members who “made it to the top” should be the super-achievers, since they had to pass through so many screens and implicit taxes.  I wrote back the following (edited) in an email:

Maybe, but I think you are assuming fixed quality of talent within each sector.

Let’s say there are two sectors. In the first, the CEO sector, women face statistical discrimination and there are multiple levels. In the second there is no statistical discrimination, let us call it women’s tennis but of course there are other examples too.

It could be that most of the talented women, those who can judge where they really will succeed best and most easily, flock to the latter sectors.  In which case the winners in the CEO sector need not be so special, including in the presence of discrimination.

That also means that employers and intermediaries have no special incentives to hunt for that talent: it has run away to other, less discriminatory sectors (and lowered wages in those sectors, I might add).

By the way, here was one good comment by Willitts on that post:

…if the signal of skill is “years of experience,” then the person filtered at the lower level will always look objectively worse at the higher level filters.

You’re assuming that the higher level decision makers have the opportunity (and desire) to consider walk-on candidates. You’re also assuming that those walk-ons will have adequate means to signal their superiority to those who passed through the filters.

I might be able to be the best CEO who ever lived, but my lack of management experience would never get me in the door for an interview. If (mild) discrimination at several rungs of the ladder kept me from rising to the penultimate rung, I’d have ZERO chance of attaining the top rung, not merely a small chance

And David:

Most elite performers are impressive throughout their lives. But they can stay constantly motivated, by rising through the ranks quickly. A stat-discriminated person might not have that advantage either.

And Jwilli7122:

Well, with the first gatekeeper there’s really no motivation to gamble on the marginalized, because a) there’s not yet a big gap and b) doing so would give up the profit of stereotyping (see the Bayesian analysis referenced in #3 of Dan’s post).

And as you get to the subsequent gatekeepers, a larger actual ability gap starts to form because the discrimination of prior gatekeepers prevented the marginalized group from gaining valuable experience.

I will continue to ponder this problem.

Crowdfunding science, from other scientists

…all qualified scientists would get some guaranteed funding — no grants required. But there should be one added step: everyone must anonymously allocate a fraction of their funds to other researchers of their own choosing.

The goal of this system would be to let scientists devote more of their time to research…

In SOFA [Self-Organizing Funding Allocation], every participant starts with the same allocation of funding every year but must allot a portion to other scientists. Reasons to select someone could range from, ‘That was a great paper’ to ‘I think they will release useful data.’ Those who get the most give the most, because scientists give a percentage of everything received under SOFA. To avoid currying favour, this process will be anonymous…

We can limit collusions and kickback schemes — the financial equivalent of citation cartels — by mandating a minimum number of recipients and restricting people from designating frequent collaborators, or colleagues at the same institution. Counteracting gender, age and prestige biases that plague conventional peer review might even be easier in SOFA because they are measurable.

Here is the Johan Bollen piece in Nature.

My musical self-education

Musick-er requests:

I’ve noticed that you tend to have pretty wide ranging tastes in music, and your recommendation on introduction to classical music was pretty spot-on. I’m wondering what training/expertise you have in music theory/aural skills?…As someone who is obviously very intelligent but not a musician (that I know of), I wonder how you interact with Bach or other master composers – what criteria do you listen for? What makes great works stand out from the merely good?

My history is this:

1. I learned how to play the guitar when I was twelve or so, and also figured out how a piano works.

2. I spent about six years studying jazz chords, American popular song, some classic rock, early acoustic blues and ragtime, Fahey/Kottke, and Bach.  I also learned how to listen with a score, at least for guitar and piano pieces.

3. Later in life, I focused on trying to make sense of early to mid 20th century classical music and Indian classical music, both excellent entry points for many of the other difficult musical genres and styles.  I tried to learn at least something about micro-tonal musics and ragas.

4. Starting in my thirties, I tried to develop a basic familiarity with world musics, not so much the European folkie stuff as those based on different conceptual principles, such as some of the Arab musics, Chinese music, and African musics including the Pygmies.

5. I cultivated “music mentors” to help me understand these musics.  Overall this is not a very book-intensive endeavor, though you will enjoy reading accompanying biographies.

I am not saying that is the right path for everyone, but I found it very rewarding, including for my broader understanding of history.

To address one of the specific questions, I think of Bach-Stravinsky, classic rock, and Indian classical music (live only) as covering some of mankind’s greatest cultural achievements, with only cinema in the running for possible parity.  Most of all just listen plenty, noting that the canonical opinions about what is best are actually pretty much on the mark.

Why statistical discrimination is higher than is either socially optimal or Bayesian rational

Let’s say there is only a mild amount of statistical discrimination in a system.  Not prejudice, just a social judgment that some groups are more likely to succeed at some tasks than others.  Most people, for instance, do not expect women to reach the NBA, but I would not from that conclude they are prejudiced.

But now introduce a further assumption.  There are multiple layers of evaluation, and at each layer people, and institutions, wish to be seen as successful talent spotters, mentors, and coaches.  High schools wish to promote students who will get into good colleges.  Colleges wish to invest in students who will get into best grad schools, or get the best jobs.  Firms wish to hire workers who will rise to CEO, even if elsewhere.  And so on.  Let’s say there are ten levels to this “game.”

Each level will apply its own “statistical discrimination” tax, whether intentionally or not.  Say for instance there is (mild) statistical discrimination against women at the CEO level.  Firms that wish to hire and promote future CEOs will be less likely to seek out women to hire, including at lower levels.  This may or may not be conscious bias; for instance the firms may decide to look for certain personality traits that, for whatever reason, are harder to find in women.  They’ll simply be making decisions that give them plaudits as good talent spotters.

Colleges will then consider similar factors in their decisions.  And so will high schools.  And so on.  In equilibrium, all ten levels of the game will levy a partial “statistical discrimination tax,” with or without conscious bias in thee discriminatory direction.

Does this sound familiar?  It is a bit like the double/multiple marginalization dilemma in microeconomics.  The number of discrimination taxes multiplies, at each level.  Just like the medieval barons put too many tolls on the river.  All of a sudden the initially mild statistical discrimination isn’t so mild any more, due to it being applied at so many veto-relevant levels.  (As you will recall from the double marginalization problem, each supplier does not take into account the effect of his/her mark-up or tax on the gains from trade elsewhere in the system.)

So say the “Bayesian rational” level of statistical discrimination is a five percent discount.  You can get far more than that as the actual effective tax on the disadvantaged group, with everyone in the system behaving in a self-interested manner.

And of course these taxes will discourage effort from the disadvantaged groups, to the detriment of efficiency and also justice.

I am indebted to Anecdotal for a useful query related to this discussion.