Category: Uncategorized
The Allocative Cost of War
Why is war so economically costly? Our answer is that modern war lowers output not only by destroying productive factors, but also by making the surviving economy work less efficiently. Using uniquely comprehensive firm-level data collected during Russia’s full-scale invasion of Ukraine in 2022, we document a dramatic collapse in allocative productivity in Ukraine. To sharpen identification and explore key mechanisms (including the role of war intensity, internal displacement, reallocation, and macroeconomic instability), we exploit spatial heterogeneity across Ukrainian districts and comparisons with Russian aggression in 2014 and the 2008 Global Financial Crisis. Our key policy implication is that restoring allocative efficiency–and preparing institutional arrangements that facilitate rapid reallocation in times of stress–is critical for sustaining economic capacity, defense, and national security.
That is from a new working paper by Yuriy Gorodnichenko, Marvin Amann, and Oleksandr Talavera.
Friday assorted links
Markets do respond to AGI news
Here is the link. What are the changes in the other market prices telling you?
Is there now a better trend in youth mental health?
A key U.S. government report on mental health, substance use and addiction showed continued improvements in several metrics, especially among young people.
There was some uncertainty about the future of the National Survey on Drug Use and Health last year, when the entire 17-member team responsible for it was laid off by the Trump administration. But the Substance Abuse and Mental Health Services Administration released the latest report Monday, with data that lets researchers look at trends from 2021 to 2025.
Fewer adolescents aged 12 to 17 reported using tobacco, alcohol, marijuana and binge drinking in the previous month, the survey found.
And in the past year, fewer in that age group reported:
— illicit drug and marijuana use
— starting drinking alcohol, vaping or marijuana
— substance, alcohol or drug use disorders
Adolescents also saw declining trends for major depressive episodes and fewer reported serious thoughts of suicide, making a suicide plan and attempting suicide.
Here is the link, via Chris Ferguson.
My short interview with Julia Willemyns
Here is the link, here is the end bit:
Who is the most important thinker of our time?
It’s not about individual thinkers any more. It’s about the internet as this vast organ of knowledge that you can play like a musical instrument, and combining the internet with AI. You can figure out things to an unprecedented degree, and it’s great in a way how much we’ve removed that process from any individual thinker.
What’s your favourite podcast?
My own! It would be weird if it wasn’t, right?
Fun throughout, from the Centre for British Progress.
Thursday assorted links
1. On India’s new gdp statistics.
2. Reasons why robotics are hard.
4. Is the inflation picture shifting? (correct link)
5. The importance of nuclear risk.
6. Call for AI safety start-ups. Project Tailwind.
7. Do the doomers have a good forecasting record?
8. OAI employees are contributing significantly to their 401k plans.
My very interesting Conversation with Jared Diamond
Here is the audio, video, and transcript. Here is part of the episode summary:
So which leaders do make a difference?
Tyler and Jared debate that question, including conditions what a religious founder needs to succeed, whether destructive leaders matter more than constructive ones, why individual leaders have mattered so little in Papua New Guinea, whether we undervalue preventers, how much Rachel Carson and the Resnicks really mattered, whether Botswana’s success will endure, Jared’s own place in intellectual history, and what he’d tell an ambitious 25-year-old about how to become consequential. They go on to cover whether New Guineans are smarter, his reasons for why the Industrial Revolution started in England, what he learned from Jim Robinson about natural experiments, why he’s more optimistic about the environment than when he wrote Collapse, what he’d do about nuclear risk, the 189 bird species on his street in Los Angeles, why the MacArthur “genius grant” left him depressed for a week, why he’s listening to one Bach cantata a week, what he hopes to work on as he enters his nineties, and more.
Excerpt, we start with this:
COWEN: Who do you think is the least replaceable leader in human history?
DIAMOND: Wow. Wow. The least replaceable leader in human history. Frankly, my answer is none. There has been no unreplaceable leader in human history because over a long time, things wash out. A candidate, of course, would be Jesus Christ, but there were half a dozen other prophets in the Roman Empire at that time discussed in the New Testament. If Christ had died in childbirth, one of those other prophets might have taken over. I would say that in the long run, there is no leader that has made a difference.
COWEN: Well, you say “might have taken over,” but that’s probabilistic, right? Say with a 40 percent chance, someone else would have taken over. It still seems in expected value terms, Christ made an enormous difference.
DIAMOND: Certainly, his religion made an enormous difference. Christ himself was the charismatic founder, but a religion needs three things: It needs a charismatic founder, it needs an organizer, and often it needs a general because new religions often face opposition. The organizer for Christianity was St. Paul. In the case of the Mahdi’s religion of the Sudan in the late 1800s, the Mahdi was the charismatic founder, and he was the organizer, and he was the general. In the case of Islam, Muhammad was the founder and the organizer and the general. Religions may have three roles, some of which are sometimes played by the same person.
COWEN: Without the figure of Muhammad at exactly the time he came along, is it not quite easy to imagine a Middle East not unified under Islam, not unified with the common language of Arabic? In some ways, maybe a bit more like the Caucasus, which remains a crazy quilt of different patterns. Thus, Muhammad is one of the three or four most consequential leaders ever.
DIAMOND: That’s possible. That’s a big question. It’s harder to become clear about Muhammad than it is about Christ, because we don’t know what the weather was like in Arabia at that time. Weather makes a big difference. If it was rainy, that would mean lots of plant growth for lots of babies and for feeding an army. We just don’t have information on the weather in Arabia at that time.
A counter-example is Genghis Khan, who developed the largest land empire in world history, all the way from China to Poland. Recently, why did Genghis Khan do it when there were other steppe leaders like Adolf Hühnlein and Timur the Turk? We’ve learned recently that the wettest time on the steppes in the last 2,000 years was around the time of Genghis’s birth. He was born at exactly the right time at the right place. If he had been born 200 miles further away and 20 years earlier, we wouldn’t know anything about him. In the case of Muhammad, we just don’t know whether the time of his birth was a particularly propitious time to found a religion in that area or not.
COWEN: The very notion that the two first names we’re talking about, they’re both religious leaders, right? They’re not kings. They’re not inventors. Do you think that suggests a vision of the world where it’s ideas that really matter and somewhat at variance with your own geography-based theories?
Interesting throughout, and we debated pomegranate juice as well. I enjoyed reading Jared’s new book Profits, Prophets, Coaches, and Kings: (When) Do Leaders Matter?
What should I ask Kevin Roose?
Yes I will be doing a podcast with him. From Wikipedia:
Kevin Roose…is an American author and journalist. He is the author of three books, and is a technology columnist and podcast host for The New York Times. He wrote a book about Liberty University, an evangelical Christian university known for strict rules imposed on students…
Kevin of course has a new book coming out, namely The AGI Chronicles: The Inside Story of the Race to Create an Artificial Superintelligence. I have yet to read it, but I expect it to be gripping.
So what should I ask him?
Wednesday assorted links
1. Crime and drunkenness map of England and Wales (that was then, this is now).
2. Cesar Aira says he will stop writing.
3. Toward a post-cultural state?
Tuesday assorted links
Some Navier-Stokes updates
Some are calling this “a Deep Blue moment” for AI.
All via T., a mathematician.
Update from OpenAI: “Our internal model group arrived at the Navier–Stokes solution in 88 hours, using around 10,000 coordinating AI agents.” And this. And from Noam Brown: “Yes, this result cost millions of dollars. But remember that when @OpenAI announced o3 it cost ~$500,000 to score 87.5% on ARC-AGI 1. Today, Astra scores higher for ~$20. In 2025 it took us and GDM an enormous amount of compute to achieve IMO gold. For the 2026 IMO, anyone with a $20/month ChatGPT subscription could do it. Massively scaling test-time compute gives us a glimpse of the future. I believe that a year from now everyone will have an AI at their fingertips capable of solving problems of this caliber.”
Monday assorted links
Sunday assorted links
1. Vishy now thinks Pragg is number one in the chess world.
2. Do children grow continuously, or grow in fits and starts?
3. It remains my view that Ferrante is the husband and wife team.
5. “US annual interest expense is up to a record 18.5% of federal government revenue. This is officially above the previous record of 18.4% set in 1991. This percentage has more than QUADRUPLED over the last 4 years as interest expenditures on public debt skyrocketed.” Link.
*Why Not Bolivia?*
The author is Calvin Korponai, and the subtitle is From Macchu Picchu into Bolivia in search of the Garden of Eden. Bolivia is a fantastic country to visit, more original than most people are expecting, and this is the book to tell you why. Excerpt:
The landscape itself is like noting else in the Americas. The altiplano is flat in the way that only vast geological formations can be flat, not the flatness of a plain that was once a sea, but the flatness of a plateau that was raised bodily by tectonic forces millions of years ago and then scoured by ten thousand years of wind and ice into the extraordinary emptiness it presents today. The horizon in every direction is uninterrupted. The sky is immense, a dome of blue so saturated at this altitude that photographs rarely convey it accurately, because the camera’s sensor cannot process a blue that contains no haze, no moisture, no atmospheric diffffusion between the sun and the surface.
And:
Arriving at El Alto International Airport (which sits on the altiplano above the city at forty-one hundred meters, making it the highest international airport in the world), you step off the plane into air so thin that the simple act of carrying your luggage to the terminal produces a shortness of breath that is mildly alarming if you have never experienced it and completely normal if you have. The airport itself is unremarkable. What happens next is not. You get into a taxi or bus and the driver takes you to the edge of the antiplano, and then the city appears, not gradually but all at once, a cascade of buildings and lights and terracotta roofs pouring down the walls of a canyon so steep and so deep that the bottom is invisible from the rim. La Paz does not reveal itself slowly. It drops away beneath you like a held breath released.
Recommended, and yes Cochabamba is an amazing food city.
Saturday assorted links
1. Joaquin Rodrigo’s Toccata. Rodrigo by the way was blind,
3. “People Keep Sneaking Into New York City Sewers. No One Knows Why.” (NYT)
4. Yiyang Zhuge has postponed her recording session with CWT, in case you will be wondering why the episode does not show up soon.
5. Who was the most consequential emperor in Chinese history?
6. Are science fiction films becoming more optimistic?
7. Ruxandra on clinical trials as the main obstacle (NYT).
8. The trend in U.S. cyberinsurance prices since 2020.
9. Fermat’s Last Theorem, the number of links cannot keep up with the world.