Category: Uncategorized

Memphis

A few days ago, a few of you thought I was dumping on Memphis.  I did say the city is not an economic development success story, but it is perhaps my favorite place to visit in the American South.  It has the best musical traditions, for instance generating Jerry Lee Lewis, Elvis, Carl Perkins, and Johnny Cash, all at more or less the same time, with many others later including Lonnie Mack, Isaac Hayes, and Booker T.  It is one of the classic barbecue cities, most of all for ribs.  Beale Street remains a wonderful place to hear music, as it is not nearly as ruined by tourists as Broadway in Nashville or Bourbon Street in New Orleans.  It is also one of the American cities most likely to look as if it is still 1963, or is that 1957?  Finally, Memphis is the starting off point for a drive down Highway 61 into the heartland of the Mississippi Delta, one of the essential American journeys and yes you still can hear rural blues music there.

If you have never done a three-day Memphis trip, I would strongly urge this upon you.

The high-return activity of raising others’ aspirations

Yesterday I had lunch with a former Ph.D student of mine, who is now highly successful and tenured at a very good school.  I was reminded that, over twenty years ago, I was Graduate Director of Admissions.  One of my favorite strategies was to take strong candidates who applied for Masters and also offer them Ph.D admissions, suggesting they might to do the latter.  My lunch partner was a beneficiary of this de facto policy.

At least two of our very best students went down this route.  Ex ante, neither realized that it was common simply to apply straight to a Ph.D program, skipping over the Masters.  I believe this is now better known, but the point is this.

At critical moments in time, you can raise the aspirations of other people significantly, especially when they are relatively young, simply by suggesting they do something better or more ambitious than what they might have in mind.  It costs you relatively little to do this, but the benefit to them, and to the broader world, may be enormous.

This is in fact one of the most valuable things you can do with your time and with your life.

Saturday assorted links

1. QuantEcon is a NumFOCUS fiscally sponsored project dedicated to development and documentation of modern open source computational tools for economics, econometrics, and decision making.  Main link here.

2. Learning others’ political views reduces the ability to assess and use their expertise in nonpolitical domains.

3. The new American songbook? Thirty song selections.  (How did Oasis and Celine Dion get on this list?)

4. Are there eight main channels of innovation?

5. Nebraska school cook who served kangaroo meat chili loses job.

What I’ve been reading

1. Catherine Clinton, Harriet Tubman: The Road to Freedom.  I hadn’t realized that so much was known about her life, or that she spent so much time in Canada, or that she fell into such obscurity during the early part of the twentieth century.  She died the same year Rosa Parks was born.  I liked this book very much.

2. Tom Miller, China’s Asian Dream: Empire Building Along the New Silk Road.  A good look at the new conflicts between China and its southeast Asian and central Asian neighbors.  Clear enough to be a good introduction, detailed enough to be useful to those who already know something about the topic.

3. Robert Alter, The Art of Bible Translation.  Alter is one of today’s most important doers, and his forthcoming Hebrew Bible translation is likely to be definitive and the most important act of publication this year.  This short volume presents his perspective on what he has done, most of all focusing on how to turn Hebrew into English.

4. Michael Tomasello, Becoming Human: A Theory of Ontogeny.  How does human psychological growth run in the first seven years, in particular how does it instill “culture” in us?  Tomasello address this question in a Belknap Press book by comparing us to chimpanzees and bonobos.  Most of all, how does the capacity for shared intentionality and self-regulation evolve in people?  This is a very thoughtful and also important book, but I’m not sure it finally succeeds into tying up all the pieces into a broader picture of…shared intentionality.

5. Camille Paglia, Provocations.  At first I was discouraged by the notion of a recycled Paglia compilation, but the quality of these pieces is often high and many of them are not readily available elsewhere.  The now-classic  Sexual Personae is still the best introduction to her work, but if you think you might be tempted by this one, you should buy it.  I would put the hit rate at about fifty percent (who else will give you running commentary on the main cinematic adaptations of Homer’s Odyssey?), and it is sad to see so far it has not been seriously reviewed.

A different and mortgage-related reason why monetary policy stimulus is weaker at lower rates

Using a household model of mortgage prepayment with endogenous mortgage pricing, wealth distributions and consumption matched to detailed loan-level evidence on the relationship between prepayment and rate incentives, we argue that the ability to stimulate the economy by cutting rates depends not just on the level of current interest rates but also on their previous path: 1) Holding current rates constant, monetary policy is less effective if previous rates were low. 2) Monetary policy “reloads” stimulative power slowly after raising rates. 3) The strength of monetary policy via the mortgage prepayment channel has been amplified by the 30-year secular decline in mortgage rates. All three conclusions imply that even if the Fed raises rates substantially before the next recession arrives, it will likely have less ammunition available for stimulus than in recent recessions.

That is from David W. Berger, Konstantin Milbradt, Fabrice Tourre, and Joseph Vavra, via the excellent Kevin Lewis.

Friday assorted links

1. Tyler, the Creator.

2. Revisiting my 2009 Crooked Timber post on law and economics.

3. Europe’s privacy laws are so tough, they are taking names off the doorbells in Vienna.  In Vienna, a doorbell isn’t just a doorbell, right?

4. A blog devoted to good podcast episodes.

5. The rich aren’t jerks after all.

6. Why doesn’t ancient fiction talk more about feelings? (or does it?)

7. There is no good system for updating genetic information (NYT).

Is “political correctness” the ultimate hack of the Left?

Yes says I, in my latest Bloomberg column.  Here is one bit:

To put it simply, the American left has been hacked, and it is now running in a circle of its own choosing, rather than focusing on electoral victories or policy effectiveness. Too many segments of the Democratic Party are self-righteously talking about identity politics, and they are letting other priorities slip.

Of course there is a lot of racism out there, which makes political correctness all the more tempting. Yet polling data suggests that up to 80 percent of Americans are opposed to politically correct thinking in its current manifestations. Latinos and Asian-Americans are among the groups most opposed, and even 61 percent of self-professed liberals do not like political correctness.

I give some examples (Elizabeth Warren, the Harvard lawsuit) of how these issues can harm the fortunes of the Left.  Here is the basic model:

I now wonder if, in the internet era, every political movement is hackable. Political involvement requires a certain kind of ideological motivation, and ideologies are imperfectly rational. So a smart hacker can redirect the attention of groups in other, less productive directions. Just put some inflammatory words or video on the internet and you can induce the left to talk more about identity politics.

Consider that political action is a public good (bad) of sorts, motivated in part by private expressive concerns.  Pursuing expressive action can lead to results-oriented value (disvalue).  So find the people who are acting that way, and put a “expressive value only” version of the dog bone before them, to compete with what they have been chasing.

The correct “hacking” words, memes, and images are found by trial and error, but once the fervently expressive left-wing responses are observed, the techniques are honed and refined pretty quickly.

And what about the hacking of the Right?

Has the right-wing been hacked? I suspect so. The president himself is part of the hack, and the core motivation is the desire to “own the libs,” a phrase I didn’t hear much five years ago. We’ve now entered an era in which too many are self-obsessed and too few are effective.

Of course a few questions come to mind:

1. Are all views hackable in this manner?

No, but views which appeal to moral superiority are usually hackable, because displays of the resulting preening are often counterproductive.

2. Once a hack occurs, can you reverse it or defend against it?

Knowledge is not always as useful as you might think.

3. Has libertarianism been hacked?

Yes, it was hacked into an ill-conceived alliance with Republicans on too many issues, under the promise of some policy victories.

4. Do the hacks on each side interact?

Well, if conservatives feel they “own the libs” by irritating their sense of political correctness, the polarization can explode pretty quickly.

Addendum: There is also this paragraph in the piece:

The biggest day-to-day losers from the political correctness movement are other left-of-center people, most of all white moderate Democrats, especially those in universities. If you really believe that “the PC stuff” is irrational and out of control and making institutions dysfunctional, and that universities are full of left-of-center people, well who is going to suffer most of the costs? It will be people in the universities, and in unjust and indiscriminate fashion. That means more liberals than conservatives, if only because the latter are relatively scarce on the ground.

Recommended.

Thursday assorted links

1. Tweetstream review of Stubborn Attachments.  And another, shorter one, from the child too.  Thank you all for making publication day such a success.

2. Chengdu plans to launch artificial moon.  (How’s that for sustainable economic growth?)

3. Harshita Arora now has a blog.

4. “white [American] liberals are [now] well to the left of the black electorate on some racial issues…

5. How can the governing of Singapore be improved?  A Reddit thread.

Raising the status of Chow Yun Fat

He is one of my favorite actors, so I was pleased to read this:

Chow Yun Fat plans to give his entire net worth of $714m to charity.

As reported by Jayne Stars, Hong Kong movie legend Chow Yun Fat will give his entire net worth of $5.6 billion HKD ($714m USD) to charity.

Despite his gargantuan wealth, Fat remains rather frugal. Only spending $800 HKD ($1o2 USD) per month, Fat is often seen taking public transport and doing charity work.

He used his first Nokia phone for over 17 years, only switching to a smartphone two years ago. Fat is known for shopping at discount stores. “I don’t wear clothes for other people. As long as I think it’s comfortable, then it’s good enough for me,” he said.

Fat often spends his free time hiking and jogging, instead of splashing out.

Here is the full story, via the excellent Benjamin Copan.  And if you don’t know his performances in The Killer, a John Woo film, now is the time to check it out.

That was then, this is now

A Cincinnati newspaper printed a malevolent editorial proclaiming that [Andrew] Jackson’s mother was a common prostitute brought to this country by British soldiers.  thereupon she married a mulatto man with whom she had several children, among them Andrew Jackson.  Apprised of this far-fetched, scandalous tale, [John Quincy] Adams thought it absurd, but cynically went on to comment that even if proved true it would probably not hurt Jackson.  The course of the campaign seemed to substantiate all Adams’s apprehensions that fervent partisanship was demolishing reasonableness, a slugfest of calumny and lies replacing political civility.  Vice was triumphing over virtue.  And the cynicism expressed in his reaction to the malignant piece regarding Jackson’s mother and his birth signaled that he had begun to doubt the probity of the republic and its citizens.

That is from the very good book by William J. Cooper, The Lost Founding Father: John Quincy Adams and the Transformation of American Politics.

Why intellectuals should not be afraid to like sports

That is the topic of my latest Bloomberg column, with a focus on the NBA.  Here is one excerpt:

Earlier three-point innovators were called crazy, and maybe they were. The Phoenix Suns tried a fast-break, three-point offense from 2004 to 2010, and they didn’t break through with it. It was persistent foreign competition that finally drove the three points home, when European and other foreign teams, which tended to take more three-point shots, did surprisingly well against U.S. teams in the Olympics. Basketball thus teaches that innovation is not automatic, and it often pays to look abroad for inspiration, even if you are the top performer at any particular moment.

In addition to being a good default conversation topic, sports also keep us in touch with strands of American life that many of us may not encounter otherwise. Following basketball gives me new entry points into rap music, sneaker contracts, college athletics, gifs, the economics of television, even Twitter; it also helped me diagnose an injury a few years ago, when I pulled both of my rotator cuffs and knew immediately how to deal with it. A lot of the American debate over race, and over protest and proper public behavior, has played out through the medium of sports.

By the way, I have no forecasts for the NBA this year other than the trivial.  As for the Lakers and LBJ, I suppose I pick them to come in seventh or so, but to go down in the first round of the playoffs.

Does law and economics matter?

This paper provides a quantitative analysis of the effects of the law and economics movement on the U.S. judiciary. Using the universe of published opinions in U.S. Circuit Courts and 1 million District Court criminal sentencing decisions linked to judge identity, we estimate the effect of attendance in the controversial Manne economics training program, an intensive two-week course attended by almost half of federal judges. After attending economics training, participating judges use more economics language, render more conservative verdicts in economics cases, rule against regulatory agencies more often, and render longer criminal sentences. These results are robust to adjusting for a wide variety of covariates that predict the timing of attendance. Comparing non-Manne and Manne judges prior to program start and exploiting variation in instructors further assuage selection concerns. Non-Manne judges randomly exposed to Manne peers on previous cases increase their use of economics language in subsequent opinions, suggesting economic ideas diffused throughout the judiciary. Variation in topic ordering finds that economic ideas were portable from regulatory to criminal cases.

That is from Elliott Ash, Daniel L. Chen, and Suresh Naidu, via Rethinking Economics and also S.