Category: Uncategorized

My excellent Conversation with Ashley Mears

Tired of lockdown, pandemic, and rioting?  Here is a podcast on some of their polar opposites, conducted by “a bridge and tunnel guy” with an accomplished sociologist.  Here is the audio and transcript, here is the summary:

Ashley Mears is a former fashion model turned academic sociologist, and her book Very Important People: Status and Beauty in the Global Party Circuit is one of Tyler’s favorites of the year. The book, the result of eighteen months of field research, describes how young women exchange “bodily capital” for free drinks and access to glamorous events, boosting the status of the big-spending men they accompany.

Ashley joined Tyler to discuss her book and experience as a model, including the economics of bottle service, which kinds of men seek the club experience (and which can’t get in), why Tyler is right to be suspicious of restaurants filled with beautiful women, why club music is so loud, the surprising reason party girls don’t want to be paid, what it’s like to be scouted, why fashion models don’t smile, the truths contained in Zoolander, how her own beauty and glamour have influenced her academic career, how Barbara Ehrenreich inspired her work, her unique tip for staying focused while writing, and more.

Here is one excerpt especially dear to my heart:

COWEN: Let’s say I had a rule not to eat food in restaurants that were full of beautiful women, thinking that the food will be worse. Is that a good rule or a bad rule?

MEARS: I know this rule, because I was reading that when you published that book. It was when I was doing the field work in 2012, 2013. And I remember reading it and laughing, because you were saying avoid trendy restaurants with beautiful women. And I was like, “Yeah, I’m one of those people that’s actually ruining the food but creating value in these other forms because being a part of this scene and producing status.” So yeah, I think that’s absolutely correct.

And:

COWEN: I have so many naive, uninformed questions, but why is the music so loud in these clubs? Who benefits from that?

MEARS: Who benefits?

COWEN: I find the music too loud in McDonald’s, right?

MEARS: Clubs are also in this business of trying to manufacture and experience what Emile Durkheim would call this collective effervescence, like losing yourself in the moment. And that’s really possible when you’re able to tune out the other things, like if somebody is feeling insecure about the way they dance or if somebody is not sure of what to say.

Having really loud music that has a beat where everybody just does the same thing, which is nod to the beat — that helps to tune people into one another, and it helps build up a vibe and a kind of energy, so the point is to lose yourself in the music in these spaces.

And:

COWEN: Let’s say you sat down with one of these 20-year-old young women, and you taught them everything you know from your studies, what you know about bodily capital, sociological theories of exploitation. You could throw at them whatever you wanted. They would read the book. They would listen to your video, talk with you. Would that change their behavior any?

MEARS: I don’t think so. No, I don’t think so. They might not be too surprised even to learn that this is a job for promoters, and the promoters make money doing this. Most of them know that. They didn’t know how much money promoters are making. They don’t know how much money the clubs are making, but they know that they’re contributing to those profits, and they know that there’s this inequality built into it.

…in this world, there’s a widespread assumption that everybody uses everybody else. The women are using the club for the pleasures that they can get from it. They’re using the promoter for the pleasures they can get from him, the access. The promoters are using the young women. The clients are using the promoters.

The drawing line is when there’s a perception of abuse. People have a clear sense that lying about being exclusively romantic would be a clear violation, so that would be abusive. But use is okay. Mutual exploitation is okay.

Definitely recommended, a unique and fascinating episode.  And again, I strongly recommend Ashley’s new book Very Important People: Status and Beauty in the Global Party Circuit, one of my favorite books of the year.

Is this why budget deficits might prove sustainable?

By Adrien Auclert, Hannes Malmberg, Frederic Martenet, and Matthew Rognlie:

We use a shift-share approach to quantify the general equilibrium effects of population aging on wealth accumulation, real interest rates, and capital flows. Combining population projections with household survey data from the US and 24 other countries,we project the evolution of wealth-to-GDP ratios by changing the age distribution,holding life-cycle asset and income profiles constant. We find that this compositional effect of aging is large and heterogeneous across countries, ranging from 85 percent-age points in Japan to 310 percentage points in India over the rest of the twenty-first century. In a general equilibrium overlapping generations model, our shift-share provides a very good approximation to the evolution of the wealth-to-GDP ratio due to demographic change when interest rates remain constant. In an integrated world economy, aging generates large global imbalances in the twenty-first century, pushing net foreign asset positions to levels several times larger than those observed until today.

Via Steven Bogden.  This is very likely an important piece.

Tuesday assorted links

1. Facts about research registries.

2. “It is this conjunction of visibility and invisibility that drives the Indian response. The lockdown meets all international standards so far; the relief package none.

3. Bryan is right about many but not all of these claims.  And here is more from Bryan.  I would note that the five percent or so of (non-fatal) cases who react very badly to Covid-19 do not seem to be obviously correlated with the comorbidities that drive mortality risk so strongly.  Bryan should take this piece and related results more seriously.

4. Scott Galloway on the future of college.  Good and vivid piece, except for the end.

5. Bleeding Heart Libertarians blog comes to an end.

6. Grindr will remove ethnicity filters in solidarity with Black Lives Matter.

7. “Counterfactual estimates suggest that, in the absence of international integration, the average resident of a low and lower-middle income country does not live in a market large enough to experience sustained poverty reduction.

8. Star Wars stormtroopers to enforce social distancing measures at Disney properties.

9. Summary of new results on super-spreaders (NYT).

Model this New York City police force

Last night, and some previous nights, many storefronts in Manhattan were trashed, there was looting in Soho, or how about this description from Rachel Olding at The Daily Beast?:

Hard to describe how rampant the looting was tonight in Midtown Manhattan and how lawless it was. Complete anarchy. Literally hundreds of stores up and down Broadway, Fifth Ave, Sixth Ave. Kids ruling the streets like it was a party.

Now, those are among the most visible and “high value” spots in the whole city and the NYPD has over 38,000 police to draw upon.  So what is the best model of why all that trouble happened and indeed was allowed to happen?  I see a few candidates:

1. Those police are not sufficiently well trained.

2. Those police are trained but they are afraid of confronting protestors and so they don’t do it.

3. The mayor de facto doesn’t want the police to be too involved, as that might be unpopular with swing voters in the primaries or even the general election.

4. The police union insists, de facto, that not many police be sent directly into such confrontations.

5. There is a general lack of accountability, and so there is failure at multiple levels, and so many good things simply do not happen, but for reasons which are not always entirely concrete.

6. The police do not have the right technology to handle these kinds of problems.

Which is it, and which other hypotheses am I neglecting?

As a more general observation, if this problem cannot be solved, complaining about Trump holding the Bible and the tear gas on the way to the church ultimately will fall upon deaf ears.  Ultimately the American public are not going to side against “the thin blue line” (i.e., the police), so to win all those important civil liberties victories you also need the police doing the proper job effectively. Maybe I picked the wrong Google terms but “why didn’t New York police stop rioters” does not in fact yield anything substantive on the question I am asking.  How can that be?  While you’re at it, model that too!

Addendum: One reader hypothesis is to send a signal to the mayor for criticizing them. Another is here: “Similar to Baltimore, the police in Minneapolis will make it clear that looting and widespread private property destruction will be tolerated for the remainder of the protests as a way to conflate protesters and looters and “teach a lesson to” their liberal civilian bosses

Police Union Privileges Revisited

The post below, Police Union Privileges, from 2018 is worth revisiting. As I wrote in a follow-up, police union privileges are only one part of a system and reform requires system-thinking. Nevertheless, getting rid of these special privileges, including so-called qualified immunity and restoring the equal rule of law are good places to start. Need I also mention that police should not keep fines and forfeitures–the negative consequences of which I documented in To Serve and Collect, my paper with Makowsky and Stratmann.

——————

Earlier I wrote about how police unions in some parts of the country (especially common in NJ and NY, yet a firing offense in some other jurisdictions, edit 2020) give to every officer dozens of “get out of jail” cards to give to friends, family, politicians, lawyers, judges and other connected people. The cards let police on the street know that the subject is to be given “professional courtesy” and they can be used to get out of speeding tickets and other infractions. Today, drawing on the Police Union Contracting Project, I discuss how union contracts and Law Officer “Bill of Rights” give police legal privileges that regular people don’t get.

In 50 cities and 13 states, for example, union contracts “restrict interrogations by limiting how long an officer can be interrogated, who can interrogate them, the types of questions that can be asked, and when an interrogation can take place.” In Virginia police officers have a right to at least a five-day delay before being interrogated. In Louisiana police officers have up to 30 days during which no questioning is allowed and they cannot be questioned for sustained periods of time or without breaks. In some cities, police officers can only be interrogated during work hours. Regular people do not get these privileges.

The key to a good interrogation is that the suspect doesn’t know what the interrogator knows so the suspect can be caught in a lie which unravels their story. Thus, the Florida Police Bill of Rights is stunning in what it allows police officers:

The law enforcement officer or correctional officer under investigation must be informed of the nature of the investigation before any interrogation begins, and he or she must be informed of the names of all complainants. All identifiable witnesses shall be interviewed, whenever possible, prior to the beginning of the investigative interview of the accused officer. The complaint, all witness statements, including all other existing subject officer statements, and all other existing evidence, including, but not limited to, incident reports, GPS locator information, and audio or video recordings relating to the incident under investigation, must be provided to each officer who is the subject of the complaint before the beginning of any investigative interview of that officer.

By knowing what the interrogators know, the suspect can craft a story that fits the known facts–and the time privilege gives them the opportunity to do so.

Moreover, how do you think complainants feel knowing that the police officer they are complaining about “must be informed of the names of all complainants.” I respect and admire police officers but frankly I think this rule is dangerous. Would you come forward?

How effective would criminal interrogations be if the following rules held for ordinary citizens?

The law enforcement officer or correctional officer under interrogation may not be subjected to offensive language or be threatened with transfer, dismissal, or disciplinary action. A promise or reward may not be made as an inducement to answer any questions.

What does it say about our justice system that the police don’t want their own tactics used against them?

In the United States if you are arrested–even for a misdemeanor or minor crime, even if the charges are dropped, even if you are found not guilty–you will likely be burdened with an arrest record that can increase the difficulty of getting a job, an occupational license, or housing. But even in the unlikely event that a police officer is officially reprimanded many states and cities require that such information is automatically erased after a year or two. The automatic erasure of complaints makes it difficult to identify problem officers or a pattern of abuse.

Louisiana’s Police Officer Bill of Rights is one of the most extreme. It states that police have the right to expunge any violation of criminal battery and assault and any violation of criminal laws involving an “obvious domestic abuse.” Truly this is hard to believe but here is the law (note that sections (2)(a) and (b) do not appear, as I read it, to be limited to anonymous or unsubstantiated complaints).

A law enforcement officer, upon written request, shall have any record of a formal complaint made against the officer for any violation of a municipal or parish ordinance or state criminal statute listed in Paragraph (2) of this Subsection involving domestic violence expunged from his personnel file, if the complaint was made anonymously to the police department and the charges are not substantiated within twelve months of the lodging of the complaint. (2)(a) Any violation of a municipal or parish ordinance or state statute defining criminal battery and assault. (b) Any violation of other municipal or parish ordinances or state statutes including criminal trespass, criminal damage to property, or disturbing the peace if the incident occurred at either the home of the victim or the officer or the violation was the result of an obvious domestic dispute.

In an excellent post on get out of free jail cards, Julian Sanchez writes:

…beyond being an affront to the ideal of the rule of law in the abstract, it seems plausible that these “get out of jail free” cards help to reinforce the sort of us-against-them mentality that alienates so many communities from their police forces. Police departments that want to demonstrate they’re serious about the principle of equality under the law shouldn’t be debating how many of these cards an average cop gets to hand out; they should be scrapping them entirely.

Equality under the law also requires that privileges and immunities extend to all citizens equally.

Monday assorted links

1. Death threats against German virologists.  And “His perception of fishes’ features was so refined, she added, that he could distinguish individual faces, the way humans recognize one another.”  (NYT)

2. Does altitude matter for Covid-19?

3. Police violence thread, excellent, scholarly.

4. Thread on police unions.  Very good.

5. Model this, Samantha Shader edition.  And Scholar’s Stage on rioting.  And the lawyers are now throwing Molotov cocktails at the police (NYT)

6. Toward a further economics of gossip.

7. Data on school reopenings and how they have gone.

8. Roland Fryer on policing the police.

Fight the Virus!

I was asked by the LATimes to contribute to a panel on economic and pandemic policy. The other contributors are Joseph E. Stiglitz, Christina Romer, Alicia H. Munnell, Jason Furman, Anat R. Admati, James Doti, Simon Johnson, Ayse Imrohoroglu and Shanthi Nataraj. Here’s my contribution:

If an invader rained missiles down on cities across the United States killing thousands of people, we would fight back. Yet despite spending trillions on unemployment insurance and relief to deal with the economic consequences of COVID-19, we have spent comparatively little fighting the virus directly.

Testing capacity has slowly increased, but where is the national program to create a dozen labs each running 200,000 tests a day? It’s technologically feasible but months into the crisis, we have only just begun to spend serious money on testing.

We haven’t even fixed billing procedures so we can use the testing capacity that already exists. That’s right, labs that could be running tests are idle because of billing procedures. And while some parts of our government are slow, the Food and Drug Administration seems intent on reducing America’s ability to fight the virus by demanding business-as-usual paperwork.

Operation Warp Speed is one of the few bright spots. Potential vaccines often fail and so firms will typically not build manufacturing capacity, let alone produce doses until after a vaccine has been approved. But if we follow the usual procedure, getting shots in arms could be delayed by months or even years.

Under Operation Warp Speed, the government is paying for capacity to be built now so that the instant one of 14 vaccine candidates is proven safe and effective, production will be ready to go. That’s exactly what Nobel-prize winning economist Michael Kremer, Susan Athey, Chris Snyder and I have recommended. It might seem expensive to invest in capacity for a vaccine that is never approved, but it’s even more expensive to delay a vaccine that could end the pandemic.

Relief payments can go on forever, but money spent on testing and vaccines has the potential to more than pay for itself. It’s time to fight back.

Alex Tabarrok is a professor of economics at George Mason University and a member of the Accelerating Health Technologies With Incentive Design team.

My point about not fighting the virus directly was illustrated by many of the other panelists. Joseph Stiglitz, Christina Romer, Alicia Munnell, Jason Furman, James Doti, and Shanthi Nataraj say nothing or next to nothing about viruses. Only Anat Admati, Simon Johnson, Ayse Imrohoroglu get it.

Admati supports a Paul Romer-style testing program:

Until effective vaccines and therapies are available, which may be many months away, our best approach is to invest heavily in increasing the capacity for testing many more people and isolating those infected.

Simon Johnson argues, in addition, for antibody tests (not the usual PCR tests):

Policymakers should go all-in on ramping up antibody testing, to determine who has been exposed to COVID-19. Such tests are not yet accurate enough to determine precise immunity levels, but the work of Michael Mina, an immunologist and epidemiologist at Harvard, and others demonstrates that using such tests in the right way generates not just information about what has happened but, because of what can be inferred about underlying disease dynamics, also the information we need to understand where the disease will likely next impact various local communities.

Imrohoroglu advocates for targeted lockdown:

In addition to CDC recommendations about social distancing and public health strategies for all, I believe that as we reopen, we should keep a targeted lockdown policy in place for at-risk groups.

Alex Armlovich on blood plasma donors and markets

From my email:

I saw your post about COVID blood brokers–My girlfriend and I had it in March and finally got antibody tests last week when the city opened the free clinics.

I inquired on a national plasma donor site, was directed to CSL Plasma in Clifton NJ, and a donor concierge from LeapCure reached out. They didn’t tell me what the compensation is (the CSL website says it’s usually ~$50 for normal plasma) but they’re calling a roundtrip Uber from my apartment near Ridgewood, Queens all the way to NJ, which is $108 one-way. The concierge said to reach out if there are any concerns with the first trip next week because they’re hoping for up to 2x weekly donations.

What I don’t understand is, why doesn’t the city’s antibody testing program directly link up to plasma donation? I had to go through a bunch of hassle to find out where to donate, and I think the information & coordination friction is a bigger deterrent than anything else. And why isn’t there more collection capacity in the city itself; the long commute seems unnecessary. If this is scientifically important enough to merit real donor spending from biotech, it seems like the city should make even a minimal investment in reducing process friction.

Maybe an integrated, frictionless testing & plasma donation infrastructure should be a permanent strategy for future “zero-day viruses” where convalescent antibodies are the only thing we have to treat first responders…

Here is Alex Armlovich on Twitter.

Social Planners Do Not Exist

Enrico Spolaore on his friend, co-author, and mentor Alberto Alesina:

I first met Alberto thirty years ago at Harvard, where he had received his Ph.D. in Economics in 1986, and had returned as faculty, after a couple of years at Carnegie-Mellon. He was already deservedly famous. In 1988, The Economist had presciently picked him as one of the decade’s eight best young economists, as he was transforming the way we approach macroeconomics and economic policy by explicitly bringing politics into the analysis. In his influential contribution to the NBER Macroeconomics Annual 1988, he had forcefully stated that “social planners do not exist.” Economists should not just assume that governments would implement optimal policies (presumably following the economists’ own  recommendations). Instead, we should strive to understand actual policies as resulting from the strategic interactions of partisan politicians with each other and with the public, and often leading to socially inefficient outcomes.

Exactly right. Alesina was one of the most important scholars extending and integrating public choice, especially to macroeconomic questions.

That was then, this is now, Minneapolis racial animus edition

Are you familiar with the earlier history of Minneapolis, say from the 1960s and 1970s?  From an article by Jeffrey T. Manuel and Andrew Urban, here is one passage about two mayors:

In 1969, four-term Democratic-Farmer Labor (DFL) mayor and former University of Minnesota political science professor Arthur Naftalin declined to run for a fifth two-year term as the mayor of Minneapolis, leaving the contest open amid the social turbulence of the late 1960s. Naftalin was a close associate of former Minneapolis mayor Hubert H. Humphrey and a practitioner of Humphrey’s brand of liberalism. They believed that government’s role was to manage and coordinate different interest groups within society, such as business leaders, members of organized labor, and racial minorities, so that the city would function efficiently and social conflict could be avoided. By allocating money to various social programs, they believed urban problems such as crime and poverty could be solved. In an unexpected move, Charles Stenvig, a 41-year-old detective in the Minneapolis police department and president of the police federation, threw his hat into the ring as an independent candidate for mayor. Running an unconventional campaign that spent little money and relied on volunteer labor, Stenvig won the 1 969 election by pledging to “take the handcuffs off the police” and to crack down on “racial militants,” criminals, and student protesters. Capturing 62 percent of the vote against a moderate Republican opponent, Stenvig shocked the city’s political establishment with his convincing victory. Running again as an independent in 1971, Stenvig defeated Harry Davis, Minneapolis ‘s first black mayoral candidate, receiving a remarkable 71 percent of the vote.

And:

Naftalin’s connection with academia was a sharp contrast to Stenvig’s open animosity toward higher education.

And:

Naftalin argued that with “proper computers,” a single executive authority could easily – and rationally – control a widely- scattered metropolitan area. For Naftalin, a rational executive would have to make unpopular decisions based on his or her expert knowledge of what was best…

And:

Thus, at several points during his career Stenvig tried to censor what he believed were immoral publications…

And this:

At the national level, many observers were surprised that race could even be a political issue in Minneapolis given the city’s numerically small minority population… Although the city’s African American population was relatively small it was concentrated in several neighborhoods, which led to frequent incidents of alleged police harassment and the belief that residents of black neighborhoods were treated unfairly by the overwhelmingly white police force.

And:

When a 12-year-old African-American boy was attacked by a police dog and dragged down the street by two policemen, many saw it as confirmation of Stenvig’s attitude toward blacks.

Finally:

Far from a naïve reactionary, Stenvig presented a political ideology that was sharply critical of liberalism and rejected social scientific knowledge and abstractions as useful guides for governance.

The article is interesting throughout, and is likely to remain so.  And you can read here about the 1967 race riots in northern Minneapolis.

AcceleratingHT

I’ve been working with Michael Kremer, Susan Athey, Chris Snyder and others to design incentives to speed vaccines and other health technologies. AcceleratingHT is our website and now features a detailed set of slides which explain the calculations behind our global plan. The global plan is similar in style to the US plan although on a larger scale. The key idea is that the global economy is losing $350 billion a month so speed pays. One way to speed a vaccine is to invest in capacity for 15-20 vaccine candidates before any candidates are approved, so that the moment a candidate is approved we can begin production (one can store doses in advance of approval). Most of the capacity will be wasted but that is a price worth paying. As Larry Summer says if you will die of starvation if you don’t get a pizza in two hours, order 5 pizzas. Human challenge trials are another way to speed the process.

A global plan is ideal since there are significant benefits to coordination. If each country invests in vaccines independently they will each choose the vaccine candidates most likely to succeed but that means all our eggs are a few baskets. There are over 100 vaccine candidates and they have different scientific and production risks so you want to choose the 15-20 which maximize the probability of success for the portfolio as a whole. To do that efficiently you need countries to agree that ‘I will invest in lots of capacity (more than I need) in candidate X if you invest in lots of capacity (more than you need) for candidate Y’, even knowing that the probability that X succeeds may be less than that of Y.

Vaccine nationalism is making a global plan look unlikely but if each country invests in multiple candidates around the world, as Operation Warp Speed is doing, and if each country guarantees to uphold contracts, we can reach a similar solution.

At AcceleratingHT you can also find our Incentive Design App which computes the optimal vaccine program given user chosen parameters. A big shout out to Juan Camilo Castillo, a newly graduated PhD student from Stanford, who put in a lot of heavy lifting on the app. We have been working on these models under time pressure and I will never forget the late night/early morning zoom calls where Michael Kremer would call out, “I think we need to take into account factor X. What effect would that have?” and Camilo would respond “Give me 5 minutes!” and, as we debated other factors Y and Z, Camilo would hack-away changing parameters and rewriting code till he had an answer. Hire a rising star while you can!

The shift of prevalance toward the young

Half of new coronavirus infections in Washington [state] are now occurring in people under the age of 40, a marked shift from earlier in the epidemic when more than two-thirds of those testing positive were in older age groups.

A new analysis finds that by early May, 39% of confirmed cases statewide were among people age 20 to 39, while those 19 and younger accounted for 11%.

Here is the full article, via Anecdotal.  A number of points:

1. As people adjust, and the higher-risk individuals take greater precautions, and the lower risk people relax their vigilance, this is likely to happen.

2. The case for age segregation, as a remedy and protection, becomes stronger.  If your policy prescriptions never change over the course of a pandemic, you are not paying sufficient attention, or you are a dogmatist, or both.

3. Universities have to worry a bit less about their students and a bit more about their faculty, at the margin.

4. As more young people acquire immunity, the incentive for yet additional young people to invest in immunity, through stochastic deliberate exposure, rises.  That in turn strengthens #2 and #3.

5. Will markets play a further role in this trend?  The excellent Kevin Lewis sends me the following (WSJ):

…while surging demand has proven a boon for the traders known as blood brokers who source this commodity, diagnostic companies say high prices for the blood of recovered Covid-19 patients are posing a hurdle to developing tests. ‘We’ve had a terrible time trying to obtain positive specimens at a decent rate,’ said Stefanie Lenart-Dallezotte, manager of business operations for San Diego-based Epitope Diagnostics Inc., which sells an antibody test for Covid-19…She said one broker quoted $1,000 for a one-milliliter sample of convalescent plasma, a term for the antibody-containing part of the blood from recovered patients. Executives at other diagnostics companies say they have been quoted prices of several thousand dollars for one milliliter of plasma.

What is the market-clearing price here, and what is the elasticity of exposure with respect to that price?  Evolving…