Category: Uncategorized
China fertility facts of the day
A Chinese billionaire was seeking parental rights to at least four unborn children, and the court’s additional research showed that he had already fathered or was in the process of fathering at least eight more—all through surrogates.
When Pellman called Xu Bo in for a confidential hearing in the summer of 2023, he never entered the courtroom, according to people who attended the hearing. The maker of fantasy videogames lived in China and appeared via video, speaking through an interpreter. He said he hoped to have 20 or so U.S.-born children through surrogacy—boys, because they’re superior to girls—to one day take over his business.
Several of his kids were being raised by nannies in nearby Irvine as they awaited paperwork to travel to China. He hadn’t yet met them, he told the judge, because work had been busy…
Some Chinese parents, inspired by Elon Musk’s 14 known children, pay millions in surrogacy fees to hire women in the U.S. to help them build families of jaw-dropping size. Xu calls himself “China’s first father” and is known in China as a vocal critic of feminism. On social media, his company said he has more than 100 children born through surrogacy in the U.S.
Another wealthy Chinese executive, Wang Huiwu, hired U.S. models and others as egg donors to have 10 girls, with the aim of one day marrying them off to powerful men, according to people close to the executive’s education company.
…“Elon Musk is becoming a role model now,” said Zhang. An increasing number of “crazy rich” clients are commissioning dozens, or even hundreds, of U.S.-born babies with the goal of “forging an unstoppable family dynasty,” he said.
Here is the full WSJ article.
Addendum: In the comments Gilligan writes: “On the positive side, we will be able to tax the heirs’ world wide income for the rest of their natural lives.”
Saturday assorted links
1. Polygenic overlap across psychiatric disorders?
2. Did humans make fire earlier than we had thought?
3. “In Development is a new magazine dedicated to exploring how progress actually happens in the developing world. We publish narrative-driven essays on ideas, policies, and technologies that have the possibility to, or are already, improving global well-being.” A call for pitches.
5. How to revive biopharma productivity.
6. In the NBA, the average 2-point shot attempt now has higher yield than a three-pointer.
Origins and persistence of the Mafia in the United States
This paper provides evidence of the institutional continuity between the “old world” Sicilian mafia and the mafia in America. We examine the migration to the United States of mafiosi expelled from Sicily in the 1920s following Fascist repression lead by Cesare Mori, the so-called “Iron Prefect”. Using historical US administrative records and FBI reports from decades later, we provide evidence that expelled mafiosi settled in pre-existing Sicilian immigrant enclaves, contributing to the rise of the American La Cosa Nostra (LCN). Our analysis reveals that a significant share of future mafia leaders in the US originated from neighborhoods that had hosted immigrant communities originating in the 32 Sicilian municipalities targeted by anti-mafia Fascist raids decades earlier. Future mafia activity is also disproportionately concentrated in these same neighborhoods. We then explore the socio-economic impact of organized crime on these communities. In the short term, we observe increased violence in adjacent neighborhoods, heightened incarceration rates, and redlining practices that restricted access to the formal financial sector. However, in the long run, these same neighborhoods exhibited higher levels of education, employment, and social mobility, challenging prevailing narratives about the purely detrimental effects of organized crime. Our findings contribute to debates on the persistence of criminal organizations and their broader economic and social consequences.
That is a new paper in the works by Zachary Porreca, Paolo Pinotti, and Masismo Anelli, here is the abstract online.
The Tech Labs initiative
…the National Science Foundation’s Technology, Innovation and Partnerships directorate at long last announced its Tech Labs initiative, which is intended to provide $10-$50 million a year to independent research teams (and yes, that is a per team dollar amount, not the initiative’s entire budget).
The intent is to provide “entrepreneurial teams of proven scientists the freedom and flexibility to pursue breakthrough science at breakneck speed, without needing to frequently stop and apply for additional grant funding with each new idea or development.”
The idea has many precursors, including all of the independent research labs and organizations going back several decades, the recent burst of philanthropy for new institutes and organizations, the idea of focused research organizations (here’s a good piece from today), Caleb Watney’s excellent piece proposing X-Labs, and Jeffrey Tsao’s proposal for Bell Labs X.
But this is the first time the federal government has gotten into the business of actively pushing for institutional diversity and for scientific funding at the team level.
Huge, if it works.
Here is more from Stuart Buck. Here is Caleb Watney in the WSJ.
Uh-oh
Among the cohort who began college in 2004, 38% ever took economics. Among the 2012 cohort, only 26% took economics.
That is from Wendy Stock.
Friday assorted links
1. An AI class created from a talk I gave.
2. A quite good essay on how to find books to read. And “if I quit social media, will I read more books?” (New Yorker)
3. Google Maps as market maker.
4. NYT advice on how to find a good restaurant when traveling abroad, the piece feels decades out of date?
5. Casey Handmer energy predictions.
8. Huge undersea wall dating from 5000 BC found in France.
9. How much did Oliver Sacks distort his stories? (New Yorker)
GDPR is worse than you had thought
We examine how data privacy regulation affects healthcare innovation and research collaboration. The European Union’s General Data Protection Regulation (GDPR) aims to enhance data security and individual privacy, but may also impose costs to data collection and sharing critical to clinical research. Focusing on the pharmaceutical sector, where timely access and the ability to share patient-level data plays an important role drug development, we use a difference-in-differences design exploiting variation in firms’ pre-GDPR reliance on EU trial sites. We find that GDPR led to a significant decline in clinical trial activity: affected firms initiated fewer trials, enrolled fewer patients, and operated at fewer trial sites. Overall collaborative clinical trials also declined, driven by a reduction in new partnerships, while collaborations with existing partners modestly increased. The decline in collaborations was driven among younger firms, with little variation by firm size. Our findings highlight a trade- off between stronger privacy protections and the efficiency of healthcare innovation, with implications for how regulation shapes the rate and composition of subsequent R&D.
That is from Jennifer Kao and Sukhun Kang, here is the online abstract for the AEA meetings.
Agentic interactions
Do human differences persist and scale when decisions are delegated to AI agents? We study an experimental marketplace in which individuals author instructions for buyer-and seller-side agents that negotiate on their behalf. We compare these AI agentic interactions to standard human-to-human negotiations in the same setting. First, contrary to predictions of more homogenous outcomes, agentic interactions lead to, if anything, greater dispersion in outcomes compared to human-mediated interactions. Second, crossing agents across counterparties reveals systematic dispersion in outcomes that tracks the identity and characteristics of the human creators; who designs the agent matters as much as, and often more than, shared information or code. Canonical behavioral frictions reappear in agentic form: personality traits shape agent behavior and selection on principal characteristics yields sorting. Despite AI agents not having access to the human principal’s characteristics, demographics such as gender and personality variables have substantial explanatory power for outcomes, in ways that are sometimes reversed from human-to-human interactions. Moreover, we uncover significant variation in “machine fluency”-the ability to instruct an AI agent to effectively align with one’s objective function-that is predicted by principals’ individual types, suggesting a new source of heterogeneity and inequality in economic outcomes. These results indicate that the agentic economy inherits, transforms, and may even amplify, human heterogeneity. Finally, we highlight a new type of information asymmetry in principal-agent relationships and the potential for specification hazard, and discuss broader implications for welfare, inequality, and market power in economies increasingly transacted through machines shaped by human intent.
Here is the full paper by Alex Imas, Kevin Lee, and Sanjog Misra. Here is a thread on the paper.
Thursday assorted links
Mass Incarceration and Mass Crime
In our Marginal Revolution Podcast on Crime in the 1970s, I pointed out that blacks were often strongly in favor of tough on crime laws:
Tabarrok: [P]eople think that mass incarceration is a peculiarly American phenomena, or that it came out of nowhere, or was due solely to racism. Michelle Alexander’s, The New Jim Crow, takes this view.
…[But] back then, the criminal justice system was also called racist, but the racism that people were pointing to was that black criminals were let back on the streets to terrorize black victims, and that black criminals were given sentences which were too light. That was the criticism back then. It was black and white victims together who drove the punishment of criminals. I think this actually tells you about two falsehoods. First, the primary driver of mass imprisonment was not racism. It was violent crime.
Second, this also puts the lie, sometimes you hear from conservatives, to this idea that black leaders don’t care about black-on-black crime. That’s a lie. Many Black leaders have been, and were, and are tough on crime. Now, it’s true, as crime began to fall in the 1990s, many blacks and whites began to have misgivings about mass incarceration. Crime was a huge problem in the 1970s and 1980s, and it hit the United States like a brick. It seemed to come out of nowhere. You can’t blame people for seeking solutions, even if the solutions come with their own problems.
A new paper The Racial Politics of Mass Incarceration by Clegg and Usmani offer more evidence challenging the now conventional Michelle Alexander view:
Public opinion data show that not just the white but also the black public became more punitive after the 1960s. Voting data from the House show that most black politicians voted punitively at the height of concern about crime. In addition, an analysis of federally mandated redistricting suggests that in the early 1990s, black political representation had a punitive impact at the state level. Together, our evidence suggests that crime had a profound effect on black politics. It also casts some doubt on the conventional view of the origins of mass incarceration.
As the authors note, the fact that blacks supported tough-on-crime laws doesn’t mean racism was absent. Racial overtones surely influenced the specific ways fear of crime was translated into policy. But the primary driver of mass incarceration wasn’t racism—it was mass crime.
Sentences to ponder
You should be able to provide an LLM as a job reference, just like you would a coworker, manager, or professor. It can form an opinion and represent you without revealing any private data.
Here is more from John Carmack.
My Conversation with the excellent Gaurav Kapadia
Here is the audio, video, and transcript. Here is the episode summary:
Gaurav Kapadia has deliberately avoided publicity throughout his career in investing, which makes this conversation a rare window into how he thinks. He now runs XN, a firm built around concentrated bets on a small number of companies with long holding periods. However, his education in judgment began much earlier, in a two-family house in Flushing that his parents converted into a four-family house. It was there where a young Gaurav served as de facto landlord, collecting rent and negotiating late payments at age 10. That grounding now expresses itself across an unusual range of domains: Tyler invited him on the show not just as an investor, but as someone with a rare ability to judge quality in cities, talent, art, and more with equal fluency.
Tyler and Gaurav discuss how Queens has thrived without new infrastructure, what he’d change as “dictator” of Flushing, whether Robert Moses should rise or fall in status, who’s the most underrated NYC mayor, what’s needed to attract better mayoral candidates, the weirdest place in NYC, why he initially turned down opportunities in investment banking for consulting, bonding with Rishi Sunak over railroads, XN’s investment philosophy, maintaining founder energy in investment firms and how he hires to prevent complacency, AI’s impact on investing, the differences between New York and London finance, the most common fundraising mistake art museums make, why he collects only American artists within 20 years of his own age, what makes Kara Walker and Rashid Johnson and Salman Toor special, whether buying art makes you a better investor, his new magazine Totei celebrating craft and craftsmanship, and much more.
Excerpt:
COWEN: Now, I don’t intend this as commentary on any particular individual, but what is it that could be done to attract a higher quality of candidate for being mayor of New York? It’s a super important job. It’s one of the world’s greatest cities, arguably the greatest. Why isn’t there more talent running after it?
KAPADIA: It is something that I’ve thought about a great deal. I think there’s a bunch of little things that accumulate, but the main thing that happens in New York City is, people automatically assume they can’t win because it’s such a big and great city. Actually, the last few presidential elections and also the current mayoral election have taught people that anyone could win. I think that, in and of itself, is going to draw more candidates as we go forward.
What happened as an example, this time, people just assumed that one candidate had the race locked up, so a lot of good candidates, even that I know, decided not even to run. It turns out that that ended up not being the case at all. Now that people put that into their mental model, the new Bayesian analysis of that would be, “Oh, more people should run.”
The second thing: New York has a bunch of very peculiar dynamics. It’s an off-year election, and the primaries are at very awkward times. I believe there’s a history of why the primary shifted to basically the third week of June, in which there’s a very low turnout. The third week of June in New York City, when the private schools are out and an off-year election. You’re able to win the Democratic nomination and therefore the mayoral election with tens of thousands of votes in a city this big. That is absolutely insane.
A couple of things that I would probably do would be to make the primary more normal, change the election timing to make it on-cycle, even number of years. You’d have to figure out how to do that. Potentially have an open primary as well.
COWEN: If we apply the Gaurav Kapadia judgment algorithm to mayoral candidates, what’s the non-obvious quality you’re looking for?
KAPADIA: Optimism.
COWEN: Optimism.
KAPADIA: Optimism.
COWEN: Is it scarce?
KAPADIA: Extraordinarily scarce. I think there’s much more doomerism everywhere than optimism. At the end of the day, people are attracted to optimism. If you think about the machinery of the city and the state, having a clear plan — of course, you need all the basics. You need to be able to govern. It’s a very complicated city. There’re many constituents.
But I think beyond that, you have to have the ability to inspire. For some reason, almost all of the candidates, over the last couple of cycles, have really not had that — with the exception of probably one — the ability to inspire. I think that is the most underrated quality that one will need.
COWEN: I have my own answer to this question, but I’m curious to see what you say. What is, for you, the weirdest part of New York City that you know of that doesn’t really feel like it belongs to New York City at all?
Definitely recommended.
Claims about Russian women (and men)
A trained observer of psychology, Alina had made careful note of the strategies that seemed to work for these gazelle-like young women. For example: “A man values a woman a lot more if she is constantly dragging presents out of him,” she said, “and he values her a lot more than the woman who says, ‘No, no, no, I don’t need anything.’ ” Alina cradled her teacup, half awestruck. “They get everything this way,” she said. “I think that these things should be explained to girls in childhood. It’s very important. And it doesn’t matter if the girl is smart or not, because you can have a girl who goes to university and gets a Ph.D. and is tremendously accomplished but then loses to these pretty young things who will take away her husband before she can count to three.”
Here is more from Julia Ioffe in The New Yorker, interesting throughout.
Wednesday assorted links
2. Historian sentences to ponder.
3. New paper on why female labor force participation is sometimes low.
4. On my chat with Dan Wang. And an Indian converses with Tyler Cowen at the Bangalore EV meet up.
5. The labor market is not yet very much rewarding claimed skills in AI?
6. Capping Swiss population at ten million polls reasonably well there (Bloomberg).
Australia should not ban under-16s from internet sites
YouTube in particular, and sometimes X, are among the very best ways to learn about the world. To the extent that the law is effectively enforced, targeting YouTube will have a terrible effect on youth science, and the ability of young scientists and founders to get their projects off the ground will take a huge and possibly fatal hit. If you are only allowed to learn from the internet at age 16, you are probably not ready for marvelous achievements at age 18 or perhaps not even at 20. The country may become more mediocre.
The more serious concern is that this represents a major expansion of government control over tech services and also speech. Over time the government has to decide which are the approved tech companies and services and which are not. That becomes a politicized decision, as any chosen lines will be arbitrary, especially as online services evolve in their functionality. For instance, if excess video usage is what is problematic, it is possible for videos to be embedded more seamlessly into some future version of WhatsApp, an exempt service. Or Australian youth, even under the new law, will be able to access video on a laptop, simply by viewing it and not signing into their accounts…
I predict that either this law stops being effectively enforced, or the controls on companies and users have to become much, much tighter and more oppressive. In a large poll of Australian 9 to 16-year-olds, only 6 percent of them thought the new ban was going to work.
That is true for yet another reason. With gaming and messaging exempt from the ban, we can expect old-style “social media” to move into those areas. It already was the case that Fortnite and other gaming services served as social media networks, and that trend will be accelerated. Discord, for instance, is exempt from the ban, a glaring hole, and in a fast-changing market there probably will be some significant loopholes most of the time. For the ban to continue to work, it will have to spread. It is hard to think of an area of internet services that could not, in principle, serve social media–like functions, or produce the harms being attributed to online life. Regulation of artificial intelligence services is perhaps the next logical albeit misguided move here.
Who is in charge of the family anyway? If I have decided that my 15-year-old should be free to follow Magnus Carlsen on X and YouTube, should we have the boot of the state tell me this is forbidden? This is a big move in the direction of what Socrates advocated in The Republic, namely that the state takes priority over the family in deciding which stories can be told to the youth.
Over time, I expect this ban, again assuming it is kept and enforced, to become one of the biggest free speech restrictions on the internet. It is the incentive of government agencies to boost their budgets, spread their mandates, and enforce their dictates. What starts with a nation’s youth rarely ends there.
You might think that Australia’s regulatory guardians can be trusted to uphold free speech ideals, but has that been the case to date? Under Australian law, it is permissible to restrict free speech for reasons of public order, national security, and protection from harm. That includes limits on “hate speech,” prompting Elon Musk to exaggerate and call the country fascist. Nonetheless the country does not have anything comparable to America’s First Amendment free speech protections.
So why should we empower Australian regulators and restrict free speech further?
It is very defensible to worry that your kid is on his or her phone too much. Furthermore, school bans or limits on smartphone usage are likely to bring some measurable but small gains.
But if you think a massive expansion of state authority over online content is the answer, you ought to know that the associated gains from that decision will at best be modest. You will not be saving civilization or our youth; rather you will be joining the ever-growing parade against free speech.
Recommended, and in this recent piece Ben Yeoh surveys the research-based literature on social media and teen harm.