Assorted links
1. A good point: "The central failure of these interviews, like so many, is that they operate from the proposition, "what would my readers find interesting?" instead of "what does my subject find interesting?"
2. Reason to worry about the second half of next year.
3. The Japanese sex-breakfast-mother-appreciation correlations.
4. How Victoria's Secret modifies a photo (excellent link, safe for work).
5. Photo sequences which are truly and deeply baffling to me. And here is Tavi Gevinson, 13-year-old fashion maven.
6. The evolution of empires; 1960 is the highlight.
What are the odds that the best chess player in the world has never played chess?
The more general issues are how well the modern world allocates talent and how much exposure you need to something you eventually will be very good at.
My view is that people who are born into a reasonably good educational infrastructure get exposed repeatedly — albeit briefly — to lots of the activities which might intrigue them. If the activity is going to click with them, it has the chance. To borrow the initial example, most high schools and junior high schools have chess clubs and not just in the wealthiest countries. Virtually everyone is put in touch with math, music, kite-flying, poetry, and so on at relatively young ages.
The idea of taking an economics class in college, or picking up some economics literature, strikes most educated people at some point, even if they squash the notion like a bug. If there is some other Paul Samuelson-quality-would-have-been who didn't become an economist, perhaps he preferred some other avocation even more.
Billions of people are not exposed to quality economics, math, music, etc., but those people also don't have the nutrition, the education, the infrastructure, or whatever, to excel at world class levels. The infrastructure and the exposure come together and in that sense we keep on mining the pool of potential talent. (Their only modal scenario to #1 for these individuals is an entirely different life altogether; mere additional exposure won't do it.)
Ernest Bazanye is blogging from Uganda.
Some people get stuck in local genres, such as a brilliant Nigerian learning funk or rap, in his teen years, but not modern jazz and besides he can't find a Nigerian market for the latter in any case. These "specialization corners" are less of a problem for math or economics, although the unification of those areas is fraying with time.
Magnus Carlsen's father suggested that if he hadn't had an older sister, he might not have taken up the game at all. Magnus was uninterested at ages four and five, but grew intrigued at age eight when he watched his father play chess with his older sister. I read this anecdote as suggesting he would have been exposed again to the game, one way or another, probably in school.
Two scenarios militate against my thesis. First, mistreated savants may not receive the necessary exposure to the activity. I am very much a believer in the potential productivity of mistreated savants. Still, I believe they often do best when not trying to be pure #1 in some commonly contested, measurable area but rather by filling unusual and hard to specify niches in a broader production process and benefiting from the division of labor to an especially high degree.
Second, a large number of children are placed on medication at early ages. This may not eliminate their exposure to an activity in the literal sense, but it may stop them from responding to potential interests.
In sum, I believe that the odds that "the best (modal) chess player in the world" has never played chess is well under fifty percent but probably above ten percent.
Assorted links
1. Evidence for recalculation theories.
2. Markets in everything, "pour chiens."
3. Recessions breed future redistributionists.
4. On Twitter, crime_economist.
Transparency in health care pricing doesn’t come easily
The health care reform bill before the U.S. Senate would require hospitals to publicize their standard charges for services, but New Hampshire and Maine have gone much further in trying to make health care costs more transparent to consumers.
New Hampshire and Maine are the only states with Web sites that let consumers compare costs based on insurance claims paid there.
In New Hampshire, the price variation across providers hasn't lessened since the Web site went live in 2007.
The link is here. You'll find the background data from New Hampshire, and a study, here. Here are some anecdotal accounts. Here is a CBO background paper on the topic. I can think of a few hypotheses:
1. People don't check the website.
2. People can't interpret the information on the website.
3. People still go where their doctors recommend or to facilities they are familiar with.
4. Many local choices, especially in these states (somewhat rural, so-so road connections), don't involve a lot of competition.
5. All of the above.
Other?
Christmas Game Theory
The lovely wife says the jewelry I bought her for Christmas has to be returned because "it's just too expensive!" Excellent. I get the credit without the credit bill!
What I will never reveal is how far I looked down the game tree before purchase.
Addendum: Do not try this at home. Without extensive knowledge of game theory and your spouse this strategy can be very dangerous to your finances, c.f. Thomas Schelling, brinksmanship.
More Engineers in Jihad
Gambetta and Hertog find that “the share of radical Islamic engineers is no less than nine times greater than the share we could expect if the proneness of engineers to radicalize was the same as that of the male adult population.” (Tyler blogged this paper several years ago.)
Here is the latest bit of evidence:
Mr. Abdulmutallab grew up in a rarefied slice of Nigeria, the son of an affluent banker. He attended one of the West Africa’s best schools, the British School of Lomé in Togo. After high school, he went to Britain and enrolled at the University College London to study engineering.
Assorted links
2. What determines how well you keep resolutions?
3. Which are the most remote places on earth? A map.
5. Markets in everything: chemotherapy cooking classes.
Markets in everything China fact of the day
Wanted: One live-in protester, $146 a month, no days off.
When the managers of a Beijing restaurant marked for demolition were too busy to fight it, they posted an Internet ad and hired a stranger to stay there around the clock. The job seems to be a first for China, where frenzied urban construction has led to violent evictions, protests and even suicide.
Huddled on a makeshift bed in the trash-strewn, freezing restaurant, Lu Daren said he once worked for a demolition crew and understands their tactics.
"I'm tired," the 46-year-old said Thursday, after a long night of fending off the latest visit from what he suspects were hired thugs by the landlord. "Tired, tired, tired." He stays – wrapped in blankets, reading the newspaper or writing idle poetry, occasionally taking short walks_ because he thinks the restaurateurs have been treated unfairly.
The full story is here and I thank Daniel Lippman for the pointer.
Books of note
1. David W. Galenson, Conceptual Revolutions in Twentieth-Century Art. We've covered Galenson in these posts.
2. Richard A. Posner, The Crisis of Capitalist Democracy. Due out in April, this book is 400 pp. The press release notes it "presents what Judge Posner has learned about the econom since writing [his last book]…[and he] thinks we're in for a financial aftershock because of the amount of money the government has poured into the economy to save it."
3. Günter Grass, The Tin Drum, new translation by Breon Mitchell. I've only browsed this, but it appears to be far better than the earlier English-language translation.
4. Scott Berkun, Confessions of a Public Speaker. If you get only one good tip from this book, it's worth it.
5. Peter Singer Under Fire: The Moral Iconoclast Faces His Critics. The critics include Bernard Williams, David Schmidtz, Jan Narveson, Michael Huemer, and myself'; Singer responds to each essay.
Christmas Bonuses for Fannie and Freddie
The Obama administration tried to sneak this one under the radar by making it official on Christmas Eve. The Washington Post did a good job catching the story:
The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress.
…But even as the administration was making this open-ended financial commitment, Fannie Mae and Freddie Mac disclosed that they had received approval from their federal regulator to pay $42 million in Wall Street-style compensation packages to 12 top executives for 2009.
The compensation packages, including up to $6 million each to Fannie Mae and Freddie Mac's chief executives, come amid an ongoing public debate about lavish payments to executives at banks and other financial firms that have received taxpayer aid. But while many firms on Wall Street have repaid the assistance, there is no prospect that Fannie Mae and Freddie Mac will do so.
Merry Christmas
Assorted links
1. Recent work in Austrian economics.
2. 121-hour long lecture (with breaks), the longest ever?
3. Scott Sumner on movies, great post.
4. Is it possible that 225,000 Haitian children are slaves? Read this too: "Researchers said the practice of young servants, known as 'restavek', is so common that almost half of 257 children interviewed in the shantytown of Cite Soleil were household slaves. The report found that most of the children are sent by parents, who cannot afford to care for them, to families just slightly better off."
Merry Christmas from The Boss (and me)
Assorted links
“Late believers”: more rational than you think
It's from The Washington Post, but for a moment I thought I was reading Robin Hanson:
Santa's spell hasn't been broken for Fiona Penn, either. A 12-year-old student at Carl Sandburg Middle School in the Alexandria part of Fairfax, Fiona is aware of the ubiquitous shopping mall Santas and the fact that some presents arrive via a UPS truck, not from the sky. But she chooses to believe that her Santa is different.
"The mall Santas, they change. They get hired and fired. But he's the real one," she said.
The full story is here.
Addendum: Fiona responds to critics in the comments section.