Category: Law
The Irish reject a “Woke” constitutional change
Ireland’s effort to remove old-fashioned family values from its constitution suffered a double defeat Saturday as voters rejected the amendments on offer as maddeningly vague and threatening to property rights…
In final results announced Saturday night, the amendment to change the constitutional definition of family was rejected by 67.7 percent of voters. The proposed changes on family care took an even harsher drubbing, with 73.9 percent against — the greatest defeat of an amendment in Irish constitutional history…
The outcome means that the 1937 constitution, the legal bedrock for the Irish state, will continue to declare marriage a requirement for any family, while women’s value to society comes from delivering “duties in the home.”
Those notions from a bygone era contrast starkly with the reality of Ireland today, where two-fifths of children are born out of wedlock and most women work outside the home.
The government, with support from all the main opposition parties, had wanted the public to accept two amendments.
Here is the full story, via Rich D.
In Conversation with Próspera CEO Erick Brimen & Vitalia Co-Founder Niklas Anzinger
During my visit to Prospera, one of Honduras’ private governments under the ZEDE law, I interviewed Prospera CEO Erick Brimen and Vitalia co-founder Niklas Anzinger. I learned a lot in the interview including the real history of the ZEDE movement (e.g. it didn’t begin with Paul Romer). I also had not fully appreciated the power of reciprocity stacking.
Companies in Prospera have the unique option to select their regulatory framework from any OECD country, among others. Erick Brimen elaborated in the podcast how this enables companies to do normal, OECD approved, things in Prospera which literally could not be done legally anywhere else in the world.
…so in the medical world for instance you have drugs that are approved in some countries but not others and you have medical practitioners that are licensed in some countries but not the others and you have medical devices approved in some countries but not others and there’s like a mismatch of things that are approved in OECD countries but there’s no one location where you can say hey if they’re approved in any country they’re approved here. That is what Prosper is….Our hypothesis is that just by doing that we can leapfrog to a certain extent and it’s got nothing to do with the wild west or doing weird things.
…so here so you can have a drug approved in the UK but not in the US with a doctor licensed in the US but not in the UK with a medical device created in Israel but not yet approved by the FDA following a procedure that has been say innovated in Canada, all of that coming together here in Prospera.
A different perspective on power grid YIMBY and NIMBY (from my email)
Just flagging that while YIMBY is important…it’s only part of the solution. And it’s unclear just how important it is compared to the issues below because so few projects are even proposed and most that are do in fact get built without too much NIMBY delay (though it certainly does happen and as an attorney I’ve had clients on both sides of those fights).
A major cause of the decline in transmission miles built is that transmission owners (typically incumbent utilities often with some amount of government granted monopoly power) have chosen not to build the kind of high voltage transmission lines that bring power from generation, largely in an effort to avoid competition and construction risk. In short, they make more money building smaller projects that maintain reliability but don’t increase the transmission capacity of the system because those smaller projects are immune from planning scrutiny and competition.
FERC is currently sitting on a new rule that will attempt to improve this, though in my opinion should go much further than I suspect it will. Eg, FERC should significantly roll back the rate of return and assumption of prudence for small projects that are increasingly making up the bulk of transmission investments as well as forcing transmission planners to fully incorporate multiple benefits of projects when deciding what projects get priority (similar to what the Midcontinent Independent System Operator does for its Long Range Transmission Planning portfolios).
Hope that context is helpful. NIMBY is all the talk in transmission right now, but it is in reality not the main source of drag on development in my experience. In some ways I’d love for NIMBY to be the biggest hurdle because it would at least mean we’d be trying to build ambitious new projects.
From Anonymous.
We need YIMBY for the U.S. power grid
The amount of new transmission line installed in the United States has dropped sharply since 2013, when 4,000 miles were added. Now, the nation struggles to bring online even 1,000 new miles a year. The slowdown has real consequences not just for companies but for the climate. A group of scientists led by Princeton University professor Jesse Jenkins warned in a report that by 2030 the United States risks losing out on 80 percent of the potential emission reductions from President Biden’s signature climate law, the Inflation Reduction Act, if the pace of transmission construction does not pick up dramatically now.
I had not know this:
To answer the call, some states have passed laws to protect crypto mining’s access to huge amounts of power.
Or that this had come so far:
Northern Virginia needs the equivalent of several large nuclear power plants to serve all the new data centers planned and under construction. Texas, where electricity shortages are already routine on hot summer days, faces the same dilemma.
Here is the full WaPo article by Evan Halper.
It’s happening, Albania fact of the day
In the OpenAI blog post they mentioned "Albania using OpenAI tools to speed up its EU accession" but I didn't realize how insane this was — they are apparently going to rewrite old laws wholesale with GPT-4 to align with EU rules https://t.co/7RZLwBYosK
— sophia (the deuteronomist) (@cis_female) March 6, 2024
Tide turning in Washington State?
From an MR reader:
Good story here about one man in Washington state fighting the battle against the progressive tide. He single handedly got six initiatives on the ballot to repeal progressive reforms over the past few years. These include a police pursuit law that prevents police from chasing criminals in most cases, and a capital gains tax despite the Washington State constitution specifically banning income tax.
One man takes on state government and wins after passage of 3 voter initiatives (fox13seattle.com)
Big recent news is that 3 of the 6 initiatives have already passed in the State legislature, and the rest will be sent to the voters as ballot questions.
We also have a new moderate city council in Seattle that is pressing charges against protestors who disrupt city meetings, making hard drugs illegal again, and trying to re-fund the police department. Also it looks like 12 (out of hundreds) of protestors that recently shut down I-5 in the heart of the city will be prosecuted. This all would have seemed impossible under the former mayor and city council. Definitely a feeling in the air that the tide has turned to some degree.
I await further reports.
What can be learned from Singaporean health care institutions?
Besides the usual, that is. Max Thilo of the UK has a new and excellent study on this, here is one excerpt from the foreword by Lord Warner:
Second, and critical, the Singaporeans are not fixated on delivering services from acute hospitals – the most expensive part of any healthcare system because of its fixed overheads and expensive maintenance. As this report demonstrates “the reason why Singapore spends so much less on health than other developed countries is its low hospital utilisation.” Instead, Singapore has invested in highly productive polyclinics and low-cost telemedicine. The result is that Singaporeans can visit their GP more often than English patients. In their polyclinics they also improve productivity by separating chronic and acute care.
And from Max:
During a recent trip, I met with the CEO of the largest telemedicine provider in Singapore. He casually mentioned that UK patients were already using his service. This seemed surprising. No comprehensive data is available for the costs of UK telemedicine services, so I googled the cost of online appointments in the UK and Singapore. Singaporean appointments are less than half the price of those in the UK. The most affordable online appointment I found in the UK was £29. Yet, many providers charge significantly more – for instance, Babylon Health lists its price for private GP appointments at £59. In contrast, Doctor Anywhere, Singapore’s leading telemedicine provider, offers services for just £12.27 Doctor Anywhere has an app where patients can log on and see patients virtually. They make and then register the diagnosis. The rest of the process, including referrals and prescriptions, is automated.
Recommended.
Further data on alcohol use amongst American youth
This paper provides the first long-run assessment of adolescent alcohol control policies on later-life health and labor market outcomes. Our analysis exploits cross-state variation in the rollout of “Zero Tolerance” (ZT) Laws, which set strict alcohol limits for drivers under age 21 and led to sharp reductions in youth binge drinking. We adopt a difference-in-differences approach that combines information on state and year of birth to identify individuals exposed to the laws during adolescence and tracks the evolving impacts into middle age. We find that ZT Laws led to significant improvements in later-life health. Individuals exposed to the laws during adolescence were substantially less likely to suffer from cognitive and physical limitations in their 40s. The health effects are mirrored by improved labor market outcomes. These patterns cannot be attributed to changes in educational attainment or marriage. Instead, we find that affected cohorts were significantly less likely to drink heavily by middle age, suggesting an important role for adolescent initiation and habit-formation in affecting long-term substance use.
Here is the article by Tatiana Abboud, Andriana Bellou, and Joshua Lewis, via tekl once again. People, you can make things easier for the political philosophers — why should they have to weigh liberty against utility? Just give up drinking voluntarily.
The Continuing Influence of Fast Grants
Fast Grants, the rapid COVID funding mechanism created by Tyler, Patrick Collison and Patrick Hsu continues to inspire change around the world. Jano Costard, the Head of Challenges at SPRIND, the German Federal Agency for Disruptive Innovation writes:
Lots to learn from Fast Grants! Can we implement it in a public institutions that face a different set of rules (and legacy)? We tried with the Challenge program at the German Federal Agency for Disruptive Innovation, SPRIND, and succeeded, mostly.
While Fast Grants gave out grants in the first round in 48h, we haven’t been that speedy. Our last Challenge had 2 weeks and 2 days from deadline until final decision in a two stage evaluation procedure. Those last two days were spent doing pitches and the teams were informed of the decision the following night. So, it rather compares to the 2 weeks decision time Fast Grants has for later rounds.
During Covid, speed was of the utmost importance. But speed remains crucial now. Teams we fund have applications with other public funders undecided after more than 2 years. These delays accumulate and matter even for pressing but slowly advancing threats like climate change. No cleantech solution that is still in the lab today will have a meaningful impact on achieving our climate goals for 2030! It’s not only the R&D that takes time, getting to meaningful scale quickly will be much harder. That’s why there is no time to waste at the start of the process.
Fast grants has two important advantages when it comes to implementation: private funds and limited legacy. Public institutions often face additional rules and procedures that slow down processes. But this is not inevitable.
For SPRIND Challenges, we implemented a funding mechanism that left room for unbureaucratic processes and provided solutions for challenges that public funders or procurers typically face. This mechanism, called pre-commercial procurement, has been established by the European Commission in 2007 but was used in Germany only 1 time until we started to use it in 2021. This is also due to legacy in processes. Institutions execute their work in part based on an implicit understanding of how things need to be, about what is allowed and what is not. This might lead them to ignore new and beneficial instruments just because “this can’t be true”. Even worse, if new mechanisms are adopted by an institution with strong inherent understand of what can and cannot work, they run the risk of overburdening new and beneficial mechanisms with previous processes and requirements. In the end, a funding mechanism is just a tool. It needs to be used right.
SPRIND had the benefit of being a newly established public institution with important liberties in doing things differently and it’s lead by a Director @rafbuff who, at the time, had no experience in the public sector. So, did we find the ultimate way to research and innovation funding with SPRIND Challenges? Certainly not! Improvements are necessary but sometimes hard to achieve (looking at you, state-aid-law!).
Impressive! And check out SPRIND, they are funding have some interesting projects!
Monopolized organ collection
The nation’s 56 organ procurement organizations collect organs — mainly kidneys — from deceased donors at hospitals and arrange for them to be transported to surgeons at the 250 U.S. medical centers that perform transplants. Each procurement group holds a government-guaranteed monopoly over a swath of U.S. territory where it operates.
Some have failed for years to collect enough organs to meet demand, according to government records. But the Centers for Medicare and Medicaid Services, the part of HHS that licenses the nonprofits to operate, has never decertified one. In response to critiques, the CMS issued new benchmarks that will allow the agency to weed out poor performers beginning in 2026.
Now many of these organ collection groups are under investigation for fraud and overbilling the government.
Hazlett on T-Mobile/Sprint
Tom Hazlett whose op-ed on the T-Mobile Sprint merger I quoted earlier writes me:
A few thoughts on your robust MR debate: (1) Were we to observe the counterfactual over the post-merger period we would have additional evidence – no disagreement. But the counterfactuals are themselves controversial to construct, and antitrust analyses typically make just the “before/after” prediction referenced. As the case against the merger (brought by several states, but rejected by a federal court) put it: “The proposed transaction would eliminate Sprint as a competitor… This increased market concentration will result in diminished competition, higher prices, and reduced quality and innovation.”
(2) There is powerful supporting evidence about merger effects apart from the retail price data. If real, quality-adjusted rates were anticipated to drop at even a faster clip (without a merger), reversing a pre-merger pro-consumer trend, then the post-merger performance in stock prices would have benefited the three incumbents in the market. Instead, two of the three firms have seen large abnormal declines in share values.
(3) The “cozy triopoly” theory is itself upended by both the firm stock price performances and the pattern of capital investments. The “Demsetz Critique” of the Structure-Conduct-Performance paradigm showed that a positive concentration-profits correlation does not imply monopolistic behavior if the proximate cause of the excess profits is efficiency. Here, T-Mobile’s network improvements appear to be caused by its merger-based spectrum acquisitions, and these upgrades linked to its subscriber growth and capital gains. The non-merging mobile rivals have suffered highly negative returns, likely in significant part from intensified competitive challenges that forced them to make large investments in response. In 2021, Verizon and AT&T combined to pay over $75 billion for spectrum rights in an FCC auction, easily the most ever paid by two (or any number of) license bidders. Cartel formation predictably reduces rivalry; evidence of firms aggressively increasing capex to better compete for market share runs counter to the expectation.
(4) Industry analysts – who provide third-party evaluations often given great weight by antitrust authorities – support these interpretations. In Dec. 2022, e.g., sector expert Craig Moffett (MoffettNathanson) wrote: “We expect T-Mobile to continue, and indeed accelerate, their market share gains versus AT&T and Verizon, as T-Mobile’s 5G network superiority becomes increasingly evident and increasingly relevant as 5G handsets become ubiquitous. The combination of a single telecom operator having both the industry’s best network and its lowest prices is unprecedented… “
(5) A 750-word oped is not the ultimate format for such evidence. My Working Paper with Robert Crandall (formerly of Brookings, now with the Technology Policy Institute) supplies a more complete analysis – comments again welcome.
Shruti Rajagopalan interviews Doug Irwin
Doug of course is one of the top trade economists. Here is the audio, video, and transcript, from the same wonderful Mercatus team that brings you CWT. Here is one excerpt:
RAJAGOPALAN: I have a different question on Adam Smith. We’re all taught Adam Smith’s division of labor, specialization, economies of scale, the cliff notes version of that. Then, we learn about absolute advantage in about five minutes. Then, we set it aside and start thinking about comparative advantage.The first question I have is does Adam Smith’s basic model of division of labor, specialization, and economies of scale anticipate the comparative advantage trade models, or does it actually undermine the comparative advantage trade models in the way that Krugman wrote about or something else?IRWIN: I think that Adam Smith has a broader view of trade, a much richer view of trade than what I would think is of the narrower David Ricardo theory of comparative advantage. If you have to read one of the two, read Adam Smith because it’s much more fun to read. Reading David Ricardo is more like reading a textbook in the sense that he doesn’t have this broad historical sense and these new rich ideas and how they’re interacting that leaves a lot to the imagination and leaves a lot to future research to flesh out.He’s saying, “England can produce wine and cloth. Here are the labor coefficients, and we’re going to do this static comparison between England and Portugal.” That’s a very narrow way of thinking about trade.RAJAGOPALAN: So badly written, you want the wine by the end of it.IRWIN: There’s a wonderful quote by George Stigler saying: “the only thing that someone will take away from reading Ricardo’s theory of comparative advantage is that they need a bottle of wine to get through it,” or something along those lines.RAJAGOPALAN: I agree.IRWIN: Adam Smith isn’t technically as sophisticated if you will, but in terms of the ideas, they’re very sophisticated. Obviously, he wasn’t thinking in terms of an economic model directly, but it’s a much richer overall discussion of trade that I think you can learn a lot from, even reading today.RAJAGOPALAN: When you see the world today, what do you think the world looks like more? Does it look more like Ricardian comparative advantage and the more recent models like Heckscher–Ohlin, and those things that came about? Do you think it really looks like the Adam Smith story, which is much more nuanced, pay attention to what’s happening in the domestic economy in terms of division of labor, specialization, and that is the lead-in to foreign trade, which is so deeply entangled with domestic trade?IRWIN: Well, I hate to waffle, but I think you need a little bit of both. It depends on the question, depends on the country, depends on the issue that you’re examining. These are just tools that you draw to help out your understanding of a particular situation. I will confess I’m a little bit more in favor of Adam Smith. I’ve always said that his theory of trade, and in particular his analysis of trade policy, which I think is underrated, is very sophisticated, and very wise, and has a lot to say to us today.RAJAGOPALAN: Beautifully written, if I may add.
There are now 100 episodes of Ideas of India, here is a link to all of them. And here is my own earlier CWT with Doug.
Access to Medical Data Saves Lives
ProPublica: In January, the Biden administration pledged to increase public access to a wide array of Medicare information to improve health care for America’s most sick and vulnerable.
…So researchers across the country were flummoxed this week when the Centers for Medicare and Medicaid Services announced a proposal that will increase fees and diminish access to claims data that has informed thousands of health care studies and influenced major public health reforms.
Using big Medicare databases has never been cheap or easy. Under the current system, researchers could have the data transferred to secure university computers for about $20,000–that’s a lot but once the data was on the university computers it could be accessed by multiple researchers, cutting costs. A professor could buy the data and their PhD students, for example, wouldn’t have to pay again. Under the new system it will cost $35,000 for one researcher to access the data which will be held on government (CMS) computers. Moreover, it’s unclear how complex statistical analysis will be performed or how congested the CMS systems may become.
Research teams on complex projects can include dozens of people and take years to complete. “The costs will grow exponentially and make access infeasible except for the very best resourced organizations,” said Joshua Gottlieb, a professor at the University of Chicago’s Harris School of Public Policy.
Public data should be open access to researchers, with appropriate anonymization. We know from IP law that barriers to access reduce research and innovation; and in the medical sphere research and innovation saves lives. Open access is also a check on how governments spends taxpayer money and the effectiveness of such spending. I also worry that raising the dollar cost of access is a prelude to other restrictions. The NIH, for example, is restricting access to genetic data if it thinks the researcher will be asking forbidden questions. Even without such explicit restrictions, there is a chilling effect when researchers are beholden for access to the government and indeed to the very agencies they may be researching.
I place a high value on privacy but I get suspicious when governments invoke privacy to block citizen access to government data but not to block government access to citizen data. Medicare databases have always been appropriately anonymized and care is taken so the data are secured but the dangers of these databases in anyone’s hand, let alone researchers, is far less than anti-money laundering, KYC laws and suspicious transaction reports in banking, automated license plate readers that the police us to scan billions of license plates or mass surveillance of the communications of US citizens under FISA. Sadly, this list could easily be extended. Liberty thrives on the people’s privacy and the government’s transparency.
Paragraphs to ponder
But anyone who actually wants to help people will eventually find themselves occupying positions of authority. And at that point, you need to act like a librarian who shushes people and collects late fees.
That is from Matt Yglesias. For which groups and endeavors is this not true?
Give Innovation a Chance
Elizabeth Currid-Halkett writing in the NYTimes discusses her son’s muscular dystrophy and his treatment with the controversial gene-therapy Elevidys. Currid-Halkett, like many parents whose children have been treated with Elevidys, reports much better results than appear in the statistics.
On Aug. 29, [my son] finally received the one-time infusion. Three weeks later, he was marching upstairs and able to jump over and over. After four weeks, he could hop on one foot. Six weeks after treatment, Eliot’s neurologist decided to re-administer the North Star Ambulatory Assessment, used to test boys with D.M.D. on skills like balance, jumping and getting up off the floor unassisted. In June, Eliot’s score was a 22 out of 34. In the second week of October, it was a perfect 34 — that of a typically developing, healthy 4-year-old boy. Head in my hands, I wept with joy. This was science at its very best, close to a miracle.
…a narrow focus on numbers ignores the real quality-of-life benefits doctors, patients and their families see from these treatments. During the advisory committee meeting for Elevidys in May 2023, I listened to F.D.A. analysts express skepticism about the drug after they watched videos of boys treated with Elevidys swimming and riding bikes. These experts — given the highest responsibility to evaluate treatments on behalf of others’ lives — seemed unable to see the forest for the trees as they focused on statistics versus real-life examples.
Frankly, I side with the statistics. We don’t hear from the parents in the placebo group whose children also spontaneously made improvements.
Even though I side the statistics, I side with approval. Innovation is a dynamic process. It’s not surprising that the first gene therapy for DMD offers only modest benefits; you don’t hit a home run the first time at bat. But if the therapy isn’t approved, the scientists don’t go back to the drawing board and keep going. If the therapy isn’t approved, it dies and you lose the money, experience and learning by doing that are needed to develop, refine and improve.
Approval is not the end of innovation but a stepping stone on the path of progress. Here’s an example I gave earlier of the same principle. When we banned supersonic aircraft, we lost the money, experience and learning by doing needed to develop quieter supersonic aircraft. A ban makes technological developments in the industry much slower and dependent upon exogeneous progress in other industries.
You must build to build better.
Addendum: Peter Marks is the best and perhaps the most important director CBER has ever had. CBER, the Center for Biologics Evaluation and Research, is responsible for biological products, including vaccines and gene therapies. Marks has repeatedly pushed and sometimes overruled his staff in approving products like Elevidys. Marks named and was the driving force at the FDA behind Operation Warp Speed, a tremendous FDA success and break with tradition. Marks has been challenging the FDA’s conservative culture. I hope his changes survive his tenure.