Category: Law

Why did Prohibition end?

While most accounts trace prohibition’s demise to widespread noncompliance and the graft it generated, we argue that elite congressional support for prohibition gave way when civil service reforms removed federal prohibition agents as patronage resources. We also argue that by giving states control of designing state conventions, and thereby risking state malapportionment of conventions, Democrats succeeded in overcoming the traditional fissures that divided their southern and northern wings.

That is from a new paper by Aaron J. Ley and Cornell W. Clayton.  Maybe I got this from somewhere on Twitter?

Kiwi cat quotas?

A regional council in New Zealand has proposed banning all domestic cats in an attempt to protect native animals.

Environment Southland’s “pest plan” calls for all domestic cats in the region to be neutered, microchipped and registered. Then, when a cat dies, residents would not be permitted to have another.

“We’re not cat haters,” John Collins, of the Omaui Landcare Trust told Newshub. “But we’d like to see responsible pet ownership and this really isn’t the place for cats.”

Ali Meade, the council’s biosecurity operations manager, said that if the move was approved the improvement for the environment and bird life would be vast…

Kapiti Island’s Kotuku Parks subdivision has a no-cat rule and Auckland council is also looking at a plan to euthanise any cat caught in an “ecologically significant site” without a microchip.

Here is the full story, via Ian Bremmer.

Trump’s NAFTA renegotiation

That is the topic of my latest Bloomberg column, the deal will be “good enough,” but the method costly.  Here is one excerpt:

At what price? Canadians and Canadian politicians now feel slighted, and it will be harder for Canada to support U.S. initiatives, especially those led by Trump, in the future. It may be a long time before Canada feels like an even vaguely equal partner again. In the meantime, the U.S. and Canada have ongoing dealings and negotiations concerning water rights, border and migration issues, intelligence sharing, terror prevention, and presenting a (relatively) united front against other foreign powers, including Russia in the Arctic. The marginal gains in trade just don’t seem worth the deterioration in the relationship.

And should Mexico really feel elevated by getting the first crack at the deal? Surely it must know that it might not be the favored party the next time around.

Do read the whole thing.  The best extraction of rent policy, of course, is simply to let Canada keep its gains from trade right now, but later demand larger concessions when it comes to Arctic policy, which will really matter.  That’s assuming nationalism, of course, as a kind of second best rejoinder.  I am more comfortable with the alternative position that the citizens in the other NAFTA member countries count for just as much as Americans.

What should I ask Michele Gelfand?

I am doing a Conversations with Tyler with her, here is her home page.  She is a Professor of Psychology at the University of Maryland and has a new book coming out: Rule Makers, Rule Breakers: How Tight and Loose Cultures Wire Out World.  Here is part of the Amazon summary:

Why are clocks in Germany so accurate while those in Brazil are frequently wrong? Why do New Zealand’s women have the highest number of sexual partners? Why are “Red” and “Blue” States really so divided? Why was the Daimler-Chrysler merger ill-fated from the start? Why is the driver of a Jaguar more likely to run a red light than the driver of a plumber’s van? Why does one spouse prize running a “tight ship” while the other refuses to “sweat the small stuff?”

In search of a common answer, Gelfand has spent two decades conducting research in more than fifty countries. Across all age groups, family variations, social classes, businesses, states and nationalities, she’s identified a primal pattern that can trigger cooperation or conflict. Her fascinating conclusion: behavior is highly influenced by the perception of threat.

She also is well-known for her analyses of how negotiations vary across organizations and cultures. Here is Gelfand on  Here is her Wikipedia page.

So what should I ask?

Airbnb Has Implemented Smart Property

In one of Nick Szabo’s classic papers on smart contracts he gives an example of smart property:

Smart property might be created by embedding smart contracts in physical objects. These embedded protocols would automatically give control of the keys for operating the property to the party who rightfully owns that property, based on the terms of the contract. For example, a car might be rendered inoperable unless the proper challenge-response protocol is completed with its rightful owner, preventing theft.

Airbnb is close to achieving smart property. On a recent trip, for example, I booked online. Shortly before I was to take control of the residence I received a code which opened an on-site lockbox with a key. I left the key in the lockbox when I left–never having met the owner or any employee. At a hotel that I stayed in on the same trip, I still had to wait in line to check-in. The Airbnb process is more convenient and cheaper because there is no need to have staff to man a front desk.

The Airbnb process typically uses physical keys but I have also stayed at places that use electronic keys and digital door locks. An electronic key is more secure since it can be a one-time use that opens the door only during the rental period.

All of this may seem somewhat ordinary but that is the point. Smart property is becoming ordinary.

Addendum: The more automated the process becomes the more a decentralized protocol or platform becomes a competitive option. Smart property that can reach out to say a matching protocol and an identity protocol could rent itself.

Airbnb is a very good company that provides valuable services at reasonable prices so a decentralized platform may not have significant advantages but as more base protocols are laid down and stabilized (“primitives”) it will become easier and more natural to create these kinds of decentralized services. See my post Blockchains and the Opportunity of the Commons.

Is Facebook causing anti-refugee attacks in Germany?

Here is the key result, as summarized by the NYT:

Wherever per-person Facebook use rose to one standard deviation above the national average, attacks on refugees increased by about 50 percent.

Here is the underlying Müller and Schwarz paper.  They consider 3,335 attacks over a two-year period in Germany.  But I say no, their conclusion has not been demonstrated.  Where to start?

Here is one picture showing a key correlation:

It is difficult to see if there is causation in the correlationThat looks pretty strong, doesn’t it?  Nein!  That is not how propaganda works, as an extensive literature in sociology and political psychology will indicate.  That is how it looks when you measure what is essentially the same variable — or its effects — two different ways.  For instance, that very big spike in the middle of the distribution?  As Ben Thompson has pointed out, it represents the New Year’s harassment attacks in Cologne.  Maybe that caused both Facebook activity and other attacks to spike at the same time?  Will you mock me if I resort to the “blog comment cliche” that correlation does not show causation?

To continue with the excellent Ben Thompson (he is worth paying for!), the identification method used in the paper is suspect, and he focuses on this quotation from the authors:

In our setting, the share of a municipality’s population that use the AfD Facebook page is an intuitive proxy for right-wing social media use; however, it is also correlated with differences in a host of observable municipality characteristics — most importantly the prevalence of right-wing ideology. We thus attempt to isolate the local component of social media usage that is uncorrelated with right-wing ideology by drawing on the number of users on the “Nutella Germany” page. With over 32 million likes, Nutella has one of the most popular Facebook pages in Germany and therefore provides a measure of general Facebook media use at the municipality level. While municipalities with high Nutella usage are more exposed to social media, they are not more likely to harbor right-wing attitudes.

The whole result rests on assumptions about Nutella?  What if you used likes for Zwetschgenkuchen?  Has a robustness test been done?  Was a simple correlation not good or not illustrative enough?  I’ll stick with the simple hypothesis that some municipalities have both more Facebook usage, due to high AfD membership, and also more attacks on refugees, and furthermore both of those variables rise in tense times.  AfD is the German party with the strongest presence on Facebook, I am sorry to say.

You will note by the way that within Germany the Nutella page has only verifiable 21,915 individual interactions, including likes (32 million is the global number of Nutella likes…die Deutschen are not that nutty), and that is distributed across 4,466 municipal areas.  (If you are confused, see p.12 in the paper, which I find difficult to follow and I suspect that represents the confusion of the authors.)  That should make you more worried yet about the Nutella identification strategy.  They never tell us what they would have without Nutella, a better tasting sandwich I would say.

I also would note the broader literature on propaganda once again.  Consider the research of Markus Prior: “…evidence for a causal link between more partisan messages and changing attitudes or behaviors is mixed at best.”  These Facebook results are simply far outside of what we normally suppose to be true about human responsiveness — so maybe the company is undercharging for its ads!

Ben adds:

I am bothered by the paper’s robustness section in two ways: first, every single robustness test confirmed the results. To me that does not suggest that the initial result must be correct; it suggests that the researchers didn’t push their data hard enough. There is always a test that fails, and that is a good thing: it shows the boundaries of what you have learned. Second, there were no robustness tests applied to one of the more compelling pieces of evidence, that Internet and Facebook outages were correlated with a reduction in violence against refugees. This is particularly unfortunate because in some ways this evidence works against the filter bubble narrative: after all, the idea is the filter bubbles change your reality over time, not that they suddenly inspire you to action out of the blue.

The authors do present natural experiments from Facebook and internet outages.  They find that “…for a given level of anti-refugee sentiment, there are fewer attacks in municipalities with high Facebook usage during an internet outage than in municipalities with low Facebook usage without an outage.” (p.28).  Again I find that confusing, but I note also that “internet outages themselves…do not have a consistent negative effect on the number of anti-refugee sentiments.”  That is the simple story, and it appears to exonerate Facebook.  pp.28-30 then present a number of interaction effects and variable multiplications, but I am not sure what to conclude from the whole mess.  I’m still expecting internet outages to lower the number of attacks, but they don’t.

Even if internet or Facebook outages do have a predictive effect on attacks in some manner, it likely shows that Facebook is a communications medium used to organize gatherings and attacks (as the telephone once might have been), not, as the authors repeatedly suggest, that Facebook is somehow generating and whipping up and controlling racist sentiment over time.  Again, compare such a possibility to the broader literature.  There is good evidence that anti-semitic violence across German regions is fairly persistent, with pogroms during the Black Death predicting synagogue attacks during the Nazi time.  And we are supposed to believe that racist feelings dwindle into passivity simply because the thugs cannot access Facebook for a few days or maybe a week?  By the way, in their approach if there is an internet outrage, mobile devices do not in Germany pick up the slack.

I’d also like to revisit the NYT sentence, cited above, and repeated many times on Twitter:

Wherever per-person Facebook use rose to one standard deviation above the national average, attacks on refugees increased by about 50 percent.

That sounds horrible, but it is actually a claim about variation across municipalities, not a claim about the absolute importance of the internet.  The authors also reported a very different and perhaps more relevant claim to the Times:

…this effect drove one-tenth of all anti-refugee violence.

I would have started the paper with that sentence, and then tried to estimate its robustness, without relying on Nutella.

As it stands right now, you shouldn’t be latching on to the reported results from this paper.

A dialogue in Seherli Tandir restaurant, this evening

There are three tables, all close enough to chat, and at them there was TC, a Saudi family with a husband, two kids and a woman in full burkha, and a woman from a fine New York City neighborhood, perhaps 65 years old.  Suddenly, the NYC woman paused from her chat with me:

NYC woman, to Saudi table: (With a strong NYC accent) So where are you all from?

Saudi Man: Saudi Arabia.

NYC woman: Is that your wife in there?

Saudi Man: Yes.

NYC woman: Is she driving yet?

Saudi Man: No

NYC woman: Why not?

Saudi Man: She does not need to.

NYC woman: I was just wondering, because they made such a big deal out of it on TV.  And I was thinking maybe they aren’t all driving yet.

Saudi Man: She does not need to.

NYC woman: But why not?

Saudi Man: Madam, you live in New York City.  Are you driving yet?

What should I ask Bruno Maçães?

I will be doing a Conversation with him.  Bruno is the author of Dawn of Eurasia: On the Trail of the New World Order, published earlier in the United Kingdom but just now in the United States.  It is one of the essential reads of the last few years and was last year a tied favorite for my “Book of the Year.”

On the book:

Well, it turns out there is a book explaining all the recent, strange events in China, Russia, Turkey and the European Union

Here is his excellent recent piece on what the West is becoming, and why.  I also have read he is currently writing a book on China’s “One Belt, One Road.”

On Bruno, here is one bit from Wikipedia:

Bruno Maçães is a Portuguese politician, political scientist, business strategist, and author. He studied at the University of Lisbon and Harvard University, where he wrote his doctoral dissertation under Harvey Mansfield. He is currently a Nonresident Senior Fellow at Hudson Institute in Washington.

My Conversation with Bruno is in fact one reason why I took my August trip to Kiev and Baku — what better and indeed necessary way to prepare for a discussion of Eurasia?

So what should I ask him?

My Conversation with Michael Pollan

I was very happy with how this turned out, here is the audio and transcript.  Here is how the CWTeam summarized it:

Michael Pollan has long been fascinated by nature and the ways we connect and clash with it, with decades of writing covering food, farming, cooking, and architecture. Pollan’s latest fascination? Our widespread and ancient desire to use nature to change our consciousness.

He joins Tyler to discuss his research and experience with psychedelics, including what kinds of people most benefit from them, what it can teach us about profundity, how it can change your personality and political views, the importance of culture in shaping the experience, the proper way to integrate it into mainstream practice, and — most importantly of all — whether it’s any fun.

He argues that LSD is underrated, I think it may be good for depression but for casual use it is rapidly becoming overrated.  Here is one exchange of relevance:

COWEN: Let me try a very philosophical question. Let’s say I could take a pill or a substance, and it would make everything seem profound. My receptivity to finding things profound would go up greatly. I could do very small events, and it would seem profound to me.

Is that, in fact, real profundity that I’m experiencing? Doesn’t real profundity somehow require excavating or experiencing things from actual society? Are psychedelics like taking this pill? They don’t give you real profundity. You just feel that many things are profound, but at the end of the experience, you don’t really have . . .

POLLAN: It depends. If you define profundity or the profound as exceptional, you have a point.

One of the things that’s very interesting about psychedelics is that our brains are tuned for novelty, and for good reason. It’s very adaptive to respond to new things in the environment, changes in your environment, threats in your environment. We’re tuned to disregard the familiar or take it for granted, which is indeed what most of us do.

One of the things that happens on psychedelics, and on cannabis interestingly enough — and there’s some science on it in the case of cannabis; I don’t think we’ve done the science yet with psychedelics — is that the familiar suddenly takes on greater weight, and there’s an appreciation of the familiar. I think a lot of familiar things are profound if looked at in the proper way.

The feelings of love I have for people in my family are profound, but I don’t always feel that profundity. Psychedelics change that balance. I talk in the book about having emotions that could be on Hallmark cards. We don’t think of Hallmark cards as being profound, but in fact, a lot of those sentiments are, properly regarded.

Yes, there are those moments you’ve smoked cannabis, and you’re looking at your hand, and you go, “Man, hands, they’re f — ing incredible.” You’re just taken with this. Is that profound or not? It sounds really goofy, but I think the line between profundity and banality is a lot finer than we think.


COWEN: I’ve never myself tried psychedelics. But I’ve asked the question, if I were to try, how would I think about what is the stopping point?

For my own life, I like, actually, to do the same things over and over again. Read books. Eat food. Spend time with friends. You can just keep on doing them, basically, till you die. I feel I’m in a very good groove on all of those.

If you take it once, and say you find it entrancing or interesting or attractive, what’s the thought process? How do you model what happens next?

POLLAN: That’s one of the really interesting things about them. You have this big experience, often positive, not always though. I had, on balance . . . all the experiences I described in the book, with one notable exception, were very positive experiences.

But I did not have a powerful desire to do it again. It doesn’t have that self-reinforcing quality, the dopamine release, I don’t know what it is, that comes with things that we like doing: eating and sex and sleep, all this kind of stuff. Your first thought after a big psychedelic experience is not “When can I do it again?” It’s like, “Do I ever have to do it again?”

COWEN: It doesn’t sound fun, though. What am I missing?

POLLAN: It’s not fun. For me, it’s not fun. I think there are doses where that might apply — low dose, so-called recreational dose, when people take some mushrooms and go to a concert, and they’re high essentially.

But the kind of experience I’m describing is a lot more — I won’t use the word profound because we’ve charged that one — that is a very internal and difficult journey that has moments of incredible beauty and lucidity, but also has dark moments, moments of contemplating death. Nothing you would describe as recreational except in the actual meaning of the word, which is never used. It’s not addictive, and I think that’s one of the reasons.

I did just talk to someone, though, who came up to me at a book signing, a guy probably in his 70s. He said, “I’ve got to tell you about the time I took LSD 16 days in a row.” That was striking. You can meet plenty of people who have marijuana or a drink 16 days in a row. But that was extraordinary. I don’t know why he did it. I’m curious to find out exactly what he got out of it.

In general, there’s a lot of space that passes. For the Grateful Dead, I don’t know. Maybe it was a nightly thing for them. But for most people, it doesn’t seem to be.

COWEN: Say I tried it, and I found it fascinating but not fun. Shouldn’t I then think there’s something wrong with me that the fascinating is not fun? Shouldn’t I downgrade my curiosity?

POLLAN: [laughs] Aren’t there many fascinating things that aren’t fun?

COWEN: All the ones I know, I find fun. This is what’s striking to me about your answer. It’s very surprising.

W even talk about LSD and sex, and why a writer’s second book is the key book for understanding that writer.  Toward the end we cover the economics of food, and, of course, the Michael Pollan production function:

COWEN: What skill do you tell them to invest in?

POLLAN: I tell them to read a lot. I’m amazed how many writing students don’t read. It’s criminal. Also, read better writers than you are. In other words, read great fiction. Cultivate your ear. Writing is a form of music, and we don’t pay enough attention to that.

When I’m drafting, there’s a period where I’m reading lots of research, and scientific articles, and history, and undistinguished prose, but as soon as I’m done with that and I’ve started drafting a chapter or an article, I stop reading that kind of stuff.

Before I go to bed, I read a novel every night. I read several pages of really good fiction. That’s because you do a lot of work in your sleep, and I want my brain to be in a rhythm of good prose.

Defininitely recommended, as is Michael’s latest book How to Change Your Mind: What the New Science of Psychedelics Teaches Us About Consciousness, Dying, Addiction, Depression, and Transcendence.

*Prohibition: A Concise History*

That is a new and truly excellent book by W.J. Rorabaugh.  It is a perfect 116 pp. of text and a model for what many other books should be.

From 1825 to 1850, the per capita consumption of alcohol in the United States dropped by half, due largely to religious influence.

As late as 1914, alcohol taxes accounted for 35 percent of the revenue of the federal government.

The Russian government moved to prohibition during WWI, and the resulting loss of revenue was a significant factor contributing to the downfall of the regime.

Note that “per capita consumption of alcohol was reduced for a very long time.”  If you were born in 1900, for instance, you could not legally drink until 1933, at the age of thirty-three, a relatively late age for this habit to form.

Today “more than half of Mexican American women are teetotalers.”  And: “African Americans continue to be light drinkers, and more than half of black women do not drink.”

Strongly recommended.  If all books were like this, it would be hard for me to tear myself away from them.

Carbon taxes and food security

By Tomoko Hasgawa, in Nature:

Food insecurity can be directly exacerbated by climate change due to crop-production-related impacts of warmer and drier conditions that are expected in important agricultural regions. However, efforts to mitigate climate change through comprehensive, economy-wide GHG emissions reductions may also negatively affect food security, due to indirect impacts on prices and supplies of key agricultural commodities. Here we conduct a multiple model assessment on the combined effects of climate change and climate mitigation efforts on agricultural commodity prices, dietary energy availability and the population at risk of hunger. A robust finding is that by 2050, stringent climate mitigation policy, if implemented evenly across all sectors and regions, would have a greater negative impact on global hunger and food consumption than the direct impacts of climate change. The negative impacts would be most prevalent in vulnerable, low-income regions such as sub-Saharan Africa and South Asia, where food security problems are already acute.

In other words, one needs to be very careful with a carbon tax.  For the pointer, I thank Charles Klingman.

Airplane Maintenance is Offshored

Where are most airplanes fixed? In foreign countries where the price of skilled labor is lower than in the United States.

US Airways and Southwest fly planes to a maintenance facility in El Salvador. Delta sends planes to Mexico. United uses a shop in China. American still does much of its most intensive maintenance in-house in the U.S., but that is likely to change in the aftermath of the company’s merger with US Airways.

Vanity Fair had a piece on this “Disturbing Truth” a few years ago. The VF piece presents a few anecdotes of safety violations at foreign maintenance facilities to stoke up fear. Naturally, no comparison to safety violations at US maintenance facilities is given. More serious data doesn’t bear out the worries of Vanity Fair. Worldwide airline safety is at an all time-high. Consider this amusing bit:

Even engine repairs and overhaul—the highly skilled aircraft-maintenance work that has remained largely in the U.S. and Europe—may follow heavy maintenance to the developing world. Emirates, the airline owned by the Gulf states, is constructing a $120 million state-of-the-art engine-repair-and-overhaul facility in Dubai.

Amusing because the world’s safest airline according to the German JACDEC (Jet Airliner Crash Data Evaluation Centre) is Emirates based in Dubai. Etihad the UAE’s second largest airline follows up closely. Chinese and South American airlines such as Sichuan Air score above most US airlines and Avianca, the El Salvador-Columbia airline, also scores highly. Of course, crashes are so rare that none of these rankings should be taken very seriously except in the sense that all of these airlines are very safe. Thus, I don’t worry much about where maintenance occurs. Indeed, if maintenance can be done for less we ought to buy more, so less expensive can mean safer.

Rather than fearing the offshoring of airplane maintenance we ought to ask how we can expand the concept. Medical tourism, for example, is growing. If foreign airplane maintenance is good enough for Delta then foreign human maintenance is good enough for me. Why don’t more US health insurance companies pay for medical procedures performed abroad? If a major medical insurer started to test and rate foreign providers and count some of them as in-service this could great alleviate fear increasing demand, lower costs, and put price pressure on US providers. Of course, we could also let in more foreign trained physicians and airplane mechanics.

Hat tip: Connor.

Why does tech have so many political problems?

These are originally derived from written notes, a basis for comments by somebody else, from a closed session on tech.  I have added my own edits:

  1. Most tech leaders aren’t especially personable. Instead, they’re quirky introverts. Or worse.
  2. Most tech leaders don’t care much about the usual policy issues. They care about AI, self-driving cars, and space travel, none of which translate into positive political influence.
  3. Tech leaders are idealistic and don’t intuitively understand the grubby workings of WDC.
  4. People who could be “managers” in tech policy areas (for instance, they understand tech, are good at coalition building, etc.) will probably be pulled into a more lucrative area of tech. Therefore ther is an acute talent shortage in tech policy areas.
  5. The Robespierrean social justice terror blowing through Silicon Valley occupies most of tech leaders’ “political” mental energy. It is hard to find time to focus on more concrete policy issues.
  6. Of the policy issues that people in tech do care about—climate, gay/trans rights, abortion, Trump—they’re misaligned with Republican Party, to say the least. This same Republican party currently rules.
  7. While accusations of deliberate bias against Republicans are overstated, the tech rank-and-file is quite anti-Republican, and increasingly so. This limits the political degrees of freedom of tech leaders. (See the responses to Elon Musk’s Republican donation.)
  8. Several of the big tech companies are de facto monopolies or semi-monopolies. They must spend a lot of their political capital denying this or otherwise minimizing its import.
  9. The media increasingly hates tech. (In part because tech is such a threat, in part because of a deeper C.P. Snow-style cultural mismatch.)
  10. Not only does tech hate Trump… but Trump hates tech.
  11. By nature, tech leaders are disagreeable iconoclasts (with individualistic and believe it or not sometimes megalomaniacal tendencies). That makes them bad at uniting as a coalition.
  12. Major tech companies have meaningful presences in just a few states, which undermines their political influence. Of states where they have a presence — CA, WA, MA, NY — Democrats usually take them for granted, Republicans write them off.  Might Austin, TX someday help here?
  13. US tech companies are increasingly unpopular among governments around the world. For instance, Facebook/WhatsApp struggles in India. Or Google and the EU. Or Visa and Russia. This distracts the companies from focusing on US and that makes them more isolated.
  14. The issues that are challenging for tech companies aren’t arcane questions directly in and of the tech industry (such as copyright mechanics for the music industry or procurement rules for defense). They’re broader and they also encounter very large coalitions coming from other directions: immigration laws, free speech issues on platforms, data privacy questions, and worker classification on marketplaces.
  15. Blockchain may well make the world “crazier” in the next five years. So tech will be seen as driving even more disruption.
  16. The industry is so successful that it’s not very popular among the rest of U.S. companies and it lacks allies. (90%+ of S&P 500 market cap appreciation this year has been driven by tech.) Many other parts of corporate America see tech as a major threat.
  17. Maybe it is hard to find prominent examples of the great good that big tech is doing. Instagram TV. iPhone X. Amazon Echo Dot. Microsoft Surface Pro. Are you impressed? Are these companies golden geese or have they simply appropriated all the gold?

Presumed Consent in Wales Falls Short

In 2003, Johnson and Goldstein published what would become a famous paper in Science, Do Defaults Save Lives? The paper featured a graph which showed organ donor consent rates in opt-in countries versus those in opt-out countries. The graph is striking because it seems to suggest that a simple change in the default rule can create a massive change in organ donor rates and thus save thousands of lives.

The graph, however, does NOT show organ donor rates. It shows that in opt-in countries few people explicitly opt-in and in presumed consent countries few people explicitly opt-out. But when a potential organ donor dies the families of people in opt-in countries who did not opt-in are still asked whether they would like to donate their loved one’s organs and many of them say yes. Similarly, in the presumed consent countries the families of people who did not opt-out are still typically asked whether they would like to donate their loved one’s organs and some of them say no.

The actual difference in organ donation rates between opt-in and presumed consent countries is much smaller than the differences in the graph, as Johnson and Goldstein made clear later in their paper. Nevertheless, the simple story in the graph encouraged many people to put excess weight on presumed consent as the solution to low organ donor rates.

The best estimates of presumed consent suggested that switching to presumed consent might increase organ donor rates by 25%. 25% isn’t bad! But we don’t have many examples of countries that have switched from one system to another so that estimate should be taken with a grain of salt.

The latest evidence comes form Wales which switched to presumed-consent in 2013. Unfortunately, there has been no increase in donation rates.

The most significant analysis of the new system is the Impact Evaluation Report, released by the Welsh Government in November 2017. Whilst focusing on the positives, such as increased understanding among medical staff, the report cannot escape the donation statistics, which clearly show no improvement. Covering the period from January 2010 or January 2011 to September 2017, all donation data show no change since the legislation’s introduction. The 21-month period before the Act came into effect saw 101 deceased donors, whereas the same period after showed 104; an increase, but one that can be properly attributed to expected annual fluctuation.

I still favor presumed consent or better, mandated choice, but I don’t think the binding constraints on organ donation are default rules. More important are preferences and fears about donation, the existence of a professional system using people who are trained to ask for donations, an institutional organization that can use donations when they are available (minimizing waste), and, of course, incentives.

Hat tip: Frank McCormick.

Are there more spies than you think?

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

We tend to focus on the cloak and dagger side of the KGB and successor institutions, but they’re also just government agencies trying to boost their budgets and achieve higher status in their home country. In other words, spy agencies play the typical bureaucratic games.

To maintain their status and privileged perch, spy agencies may try to take credit for as many activities as possible. This emphasis of quantity over quality is a typical bureaucratic response to a political system based on imperfect information. It is hard for national leaders to judge how effective their spy agencies are, so the spy agencies want to pass along good numbers, much as a corporation might try to slant its quarterly earnings report.


John Negroponte, former director of national intelligence, admitted in 2006 that the U.S. was deploying about 100,000 spies around the world. Given that the U.S. is the world’s technology and military leader, and yet has a relatively small share of global population, is it so crazy to think the number of people spying on us is larger than that?

Do read the whole thing.