Here is the transcript, audio, and video. Here is part of the summary:
Nathan joined Tyler for a conversation about which African countries a theory of persistence would lead him to bet on, why so many Africans live in harder to settle areas, his predictions for the effects of Chinese development on East Africa, why genetic distance is a strong predictor of bilateral income differences and trade, the pleasant surprises of visiting the Democratic Republic of Congo, the role of the Catholic Church in the development of the West, why Canadian football is underrated, the unique commutes of Ottawans, the lack of Canadian brands, what’s missing from most economic graduate programs, the benefits of studying economics outside of the United States, how the plow shaped gender roles in the societies that used it, the cultural values behind South Korea’s success, and more.
Here is one excerpt:
COWEN: If you try to think, say, within Africa, what would be some places that you would be modestly more optimistic about than, say, a hedge fund manager who didn’t understand persistence? What would a few of those countries be? Again, recognizing enormous noise, variance, and so on, as with smoking and lung cancer.
NUNN: If I’m true to exactly what I was just saying, then southern Africa or places where you have a larger population of societies that historically were more developed. South Africa, you have the Afrikaans, and they have a different descent than others. That’s if I’m true to what I was saying. But that’s ignoring that, also within Africa, you had a very large number of successful, well-developed states, and that was prior to European colonialism and the slave trade. So one could look at those cases.
One area that I worked at, the Democratic Republic of Congo, where you had the great Congo Kingdom, the Kuba Kingdom, a large number of other kingdoms, the Luba for example — that would probably be one country. That country today is pretty much as low as — in terms of per capita income — as you can be, right at subsistence. But if we’re predicting just based purely on persistence and historical state formation, that would be one to pick.
COWEN: What do you find to be the most convincing account of Botswana’s relative economic success?
NUNN: A few things. One is, Botswana is pretty small in terms of population. Anytime you have smaller countries, you can have more extreme outcomes. That’s one, that it’s small. But then related to that, it’s, in general, ethnically homogenous, particularly compared to other countries within Africa. The Tswana are the predominant ethnicity. They also have a historical social structure, and I think that was pretty well maintained and left intact. That’s a big part of the explanation.
COWEN: Is it fun to visit Democratic Republic of Congo?
NUNN: Yeah, it’s great. Yeah.
COWEN: Tell us what’s fun. I need to go once I can.
NUNN: Yeah, it’s really, really great. The first time we went as a team — this is James Robinson, Sara Lowes, Jonathan Weigel in 2013 — we were pretty apprehensive. You hear a lot of stories about the DRC. It sounds like a very unsafe place, et cetera. But one thing we didn’t realize or weren’t expecting was just how lovely and wonderful the people are.
And it turns out it’s not unsafe in general. It depends on different locations. In the east, definitely near Goma, it’s obviously much, much less safe. But I think what, for me, is wonderful is the sense of community. Because the places we go are places that haven’t been touched, to a large extent, by foreign aid or NGOs or tourism, I think we are treated just like any other individual within the community.
COWEN: What’s your favorite movie and why?
NUNN: Oh, favorite movie. [laughs] That’s a good question. Favorite movie — in the past it was Dazed and Confused. I must have watched that in university about a hundred times.
COWEN: A wonderful film.
Recommended, interesting throughout.
Here goes, it is not for me to judge the quality of the result, but I can say that David is a very good interviewer. Here are his summary notes:
Tyler ends every episode of his podcast asking about other people’s production function. How do you get so much done? What’s the secret sauce of all that you’ve accomplished? This episode is entirely devoted to that question. But this time, I’m asking Tyler. We started by talking about why there aren’t more Tyler Cowens in the world. Then, we moved to Tyler’s process for writing, such as choosing article topics and editing his work. Later in the podcast, we discussed Tyler’s process for choosing friends, why he would travel across the world to visit a new country for just ten hours, and what he’s learned from high-powered people like Peter Thiel and Patrick Collison.
I also tried to give a few deliberately “low status boasting answers,” as I call them (rather than high status airy detachment — e.g., “it is not for me to judge the quality of the result”), label it countersignaling if you wish.
Didn’t Mises insist on that proposition in his Theory of Money and Credit? The claim always bugged me, as it is true only tautologically. Here is one counterexample:
In a remote area of Papua’s Pegunungan Bintang regency, purchasing staple commodities will put a far bigger dent in your wallet than in most other areas of Indonesia.
For a sack of rice, typically weighing 10 kilograms, people in the traditional gold mining area of Korowai have to spend at least Rp 2 million (US$138.5), similar to the cost of a low-end smartphone.
For comparison, in Jakarta, 1 kilogram of rice costs Rp 10,000 to Rp 11,000, meaning 10 kg of rice costs people in the capital around Rp 110,000.
The massive price discrepancies are not limited to rice. A box of instant noodles costs Rp 1 million in Korowai. Sometimes, people even pay with two grams of gold.
“A pack of instant noodles costs Rp 25,000,” said Hengki Yaluwo, an administrator of a cooperative in Korowai’s Mining Area 33 on Wednesday.
“Ten kilograms of rice costs four grams of gold. If you pay with cash, you need Rp 2 million,” he said.
One can of fish typically costs Rp 150,000, while a cell phone could cost 10 to 25 grams of gold, Hengki said.
As for arbitrage:
Reaching Korowai is difficult. People must take a helicopter from Bovel Digoel regency, and then continue by longboat, traveling along the Boven Digoel river for one day. After this, they must travel by foot for two days before finally arriving at the Korowai mining area.
…BMW is planning to move some features of its new cars to a subscription model, something it announced on Wednesday during a briefing for the press on the company’s digital plans.
…now the Bavarian carmaker has plans to apply that model to features like heated seats. BMW says that owners can “benefit in advance from the opportunity to try out the products for a trial period of one month, after which they can book the respective service for one or three years.” The company also says that it could allow the second owner of a BMW to activate features that the original purchaser declined.
In fact, BMW has already started implementing this idea in some markets, allowing software unlocking of features like adaptive cruise control or high-beam assist (in the United States, those options are usually standard equipment). Other features are more whimsical, like having a Hans Zimmer-designed sound package for your electric BMW or adaptive suspension for your M-car. Indeed, the company says that its forthcoming iNext will “expand the opportunities for personalization.” I’m sure y’all can’t wait.
Here is the full story, via the excellent Samir Varma. In the standard theory of bundling, bundling enables more price discrimination, as for instance with the cable TV bundle. But if most consumers really don’t value the add-ons at all, which perhaps is the case here, a’la carte may maximize revenue after all.
I know nothing about this topic, so thought I should pass along this email from MR reader Edward Dixon:
Having benefited from your advice on restaurants, I thought I would pass on some simple tips for the identification of interesting boats & interesting sailors.
The method is actually a little like finding an interesting restaurant: most of the boats you see are more or less in the form in which they left the boatyard that built them. You can think of them and their owners as being akin to chain restaurants. These are the ones to ignore!
Watch instead for boats:
– Ignore anything suggested of a racing pedigree
– Equipped to sail. Two masts are better than one. Gaff rigs and junk rigs are also interesting indicators. The limited speed but unlimited range are attributes of sail that act as a sort of filder.
– extra hardware bolted on top, like a solar panel / wind-vane combination
– A complicated-looking wind-vane attachment bolted onto the stern indicates self-steering gear
– A cupola or dome, a little reminiscent of a turret on top of a WWII bomber somewhere on the coach-roof.
– Indications that the boat is a home-build – possible harder for you to assess
Boats with quirks tend to contain interesting people; often they have made Unconventional Life Choices, including of course long sea voyages, often solo. They have often made extraordinary efforts to go to sea – I once met a man in late middle age who had crossed the Irish Sea in an easterly gale in a 17ft open boat he had constructed himself using (non-marine-grade) plywood, and who was engaged in a boat-based camping tour of Ireland. This turned out to be entirely consistent with the rest of his history.
Interesting boat folk, like interesting restaurants, are out there to be found, once you learn a few heuristics.
To be clear, I do not favor building the Trump Wall (at all), still I am willing to present relevant evidence when it appears. Here is the abstract of a new paper by Benjamin Feigenberg:
This paper estimates the impact of the US-Mexico border fence on US-Mexico migration by exploiting variation in the timing and location of US government investment in fence construction. Using Mexican survey data and data I collected on fence construction, I find that construction in a municipality reduces migration by 27 percent for municipality residents and 15 percent for residents of adjacent municipalities. In addition, construction reduces migration by up to 35 percent from non-border municipalities. I also find that construction induces migrants to substitute toward alternative crossing locations, disproportionately deters low-skilled migrants, and reduces the number of undocumented Mexicans in the United States.
That is from American Economic Journal: Applied Economics, you should be able to click through the captcha and get to the paper.
At Changi, one of the world’s great travel hubs, traffic plunged from 5.9 million passengers in January to a mere 25,200 in April — a 99.5 percent drop. The number of airlines serving the airport collapsed from 91 to 35. Two of the four main terminals have been temporarily mothballed; plans for a fifth have been set back at least two years.
Here is the full article, about the retreat of globalization.
That is the topic of my latest Bloomberg column, here is the premise:
With my summer trips abroad canceled, I decided to be resourceful about travel. Having lived in Northern Virginia for 30 years, I asked myself a simple question: Which local trip have I still not done?
Earlier in the summer I thought I might spend time in scenic Maine, but too many of my friends from the Northeast and mid-Atlantic seemed to be planning the same. I decided a more adventurous course of action would be to get in the car with my daughter Yana and spend a three-day weekend on the road.
The column is not easily excerpted, but here is one bit:
Lunch was in Morgantown, West Virginia, but rather than visit the university, we stopped for excellent Jamaican food with jerk chicken, oxtail and plantains — better than the equivalent in the D.C. area. A tip: If you’re ever looking for great food in obscure locales, don’t just google “best restaurants Morgantown WV,” as that will yield too many mainstream options. Pick a cuisine you don’t expect them to have, and Google something like “best Haitian restaurant Morgantown WV.” Whether a Haitian restaurant comes up (it didn’t), you’ll get a more interesting selection of “best” picks. In this case we learned that a town of 30,000 people has several Caribbean restaurants, highly rated ones at that.
Five states in one day (VA, WV, MD, PA, OH) was great fun. In my view, every excellent trip has one stop or locale at its emotional and narrative heart, and for this trip is was the Native American Earthworks in Marietta, southern Ohio.
Here is the story, the speech appears in a box in the corner:
A Brexiteer Tory MP has urged the government to let his dogs keep their freedom of movement rights after Britain leaves the EU.
Bob Stewart, the MP for Beckenham, said his “French-speaking” hounds crossed the Channel regularly on their EU “pet passports”.
Millions of Britons are set to lose the ability to live and work freely on the continent at the end of the year as a result of the UK’s departure from the bloc.
I am an advocate of canine cosmopolitanism, rather than canine nationalism. Is everyone?
Speaking in French, Mr Gove added: “We always defend the rights of dogs.”
Is that true? Under the previous pre-Brexit regime, a pet passport was sufficient. But now:
Under the worst case-scenario of a no-deal Brexit, taking a pet to the EU will likely require a four-month advanced process that includes microchipping, a rabies vaccination, a blood test and a three-month wait to travel after the blood test.
The Transportation Security Administration withheld N-95 masks from staff and exhibited “gross mismanagement” in its response to the Coronavirus crisis – leaving employees and travelers vulnerable during the most urgent days of the pandemic, a senior TSA official alleges in a new whistleblower complaint.
On Thursday evening the Office of Special Counsel, an independent federal agency that handles whistleblower complaints, said they had found “substantial likelihood of wrongdoing” in the complaint and ordered the Department of Homeland Security to open an investigation…
TSA Federal Security Director Jay Brainard is an official in charge of transportation security in the state of Kansas, and has been with the TSA since the agency’s inception in 2003.
He told NPR that the leadership of his agency failed to protect its staff from the pandemic, and as a result, allowed TSA employees to be “a significant carrier” for the spread of the Coronavirus to airport travelers.
Here is the full NPR story.
As tourism slowly resumes around the world, many nations are still reluctant to open their borders fully – with Cambodia imposing perhaps the toughest entry requirements of any country.
The south-east Asian country is popular with backpackers, and most renowned for the Unesco-listed temple complex at Angkor Wat.
According to the latest Foreign Office bulletin on Cambodia, foreign travellers must pay a $3,000 (£2,400) deposit for “Covid-19 service charges” at the airport upon arrival.
What appears to be the first “coronavirus deposit” can be paid in cash or by credit card.
The FCO says: “Once deductions for services have been made, the remainder of the deposit will be returned.” But those deductions may be steep – especially if another passenger on the same flight happens to test positive for coronavirus.
So far, so good, perhaps you are keen to go. But here is the downside of the experience:
But if one passenger on their flight tests positive for coronavirus, everyone on the same flight is quarantined in government-approved accommodation for two weeks, at a cost of $1,176 including meals, laundry and “sanitary services”. They must also pay another $100 for a second Covid-19 test. This totals a further £1,021.
If the traveller happens to be the coronavirus-positive patient, they will have to take up to four tests at another $100 (£80) each, as well as $3,150 (£2,500) for treatment at the Khmer-Soviet Friendship Hospital in the capital, Phnom Penh.
…Cambodia also imposes a requirement for $50,000 (£40,000) of travel insurance cover for medical treatment.
If the unfortunate arrival passes away, the Foreign Office warns: “The cremation service charge is $1,500 [£1,200].”
Here is the full article, via Shaffin Shariff.
When you’ve been cooped up for months, you start to miss aspects of life you used to dread. Remember airport security lines? Remember 3.4-fluid-ounce bottles? Remember taking off your shoes and then scrambling to put them back on at the end of a conveyor belt? What we wouldn’t give for those experiences now.
For travelers longing for the days of yore, Taipei’s Songshan Airport is offering 90 people the chance to pretend they’re going on vacation.
The airport is hosting a tour that will allow people to go to the airport, without actually going anywhere. The half-day experience will include a tour of the airport, a mock immigration experience and finally, the chance to board and then disembark an airplane.
Here is the full article, via Shaffin Shariff.
Now is an ideal time to visit Maryland’s Eastern Shore, if only for a few days. There are open vistas, water birds, charming old homes, and plenty of signs of Revolutionary and 19th century history. (At that time the Chesapeake was a focal area with important water access, now it is a literal “backwater.”) None of those features are diminished by opening restrictions or social distancing. Most of the restaurants you want to eat in were serving outside anyway. Mask observance I would describe as “not below average.” On Tilghman island, you can see one of the old Navy research stations where they worked to make radar operational, plus there is a nice 19th century church. The whole “white guys with boats” thing I find boring, however.
Moral hazard — forget about it!:
In the Mediterranean island nation of Cyprus, government leaders have pledged to cover all costs for any traveler who tests positive for the coronavirus while on vacation, according to the Associated Press. In a letter sent out to governments, airlines and tour operators, Cypriot officials said they would cover “lodging, food, drink and medication for covid-19 patients and their families” while on the island.
Tourism accounts for 13 percent of Cyprus’s economy, according to the AP, and with one of the lowest coronavirus ratios per capita in Europe, tourism ministers plan to restart international air travel on June 9.
Here is the full story, which includes other examples.
In the European Union Greece is moving the quickest, but still this does not sound so appealing:
Phase 1 – Until 15 June
International flights are allowed only into Athens airport.
All visitors are tested upon arrival and are required to stay overnight at a designated hotel. If the test is negative, then the passenger self-quarantines for 7 days. If the test is positive, the passenger is quarantined under supervision for 14 days.
Phase 2 – Bridge phase- 15 June to 30 June
International flights are allowed into Athens and Thessaloniki airports.
If your travel originated from an airport not in the EASA affected area list (https://www.easa.europa.eu/SD-2020-01/Airports#group-easa-downloads), then you are only subject to random tests upon arrival.
If you originate from an airport on the EASA affected area list, then you will be tested upon arrival. An overnight stay at a designated hotel is required. If the test is negative then the passenger self-quarantines for 7 days. If the test is positive, the passenger is quarantined under supervision for 14 days.