The AEA has long had a data repository but no one was responsible for examining the data or replicating a paper’s results and confidential data was treated as an exception. All that is about to change. The AEA has hired a Data Editor, Lars Vilhuber. Vilhuber will be responsible for verifying that the author’s code produces the claimed results from the given data. In some cases Vilhuber will even verify results from raw data all the way to table output.
The new data policy is a significant increase in the requirements to publish in an AEA journal. It takes an immense amount of work to document in a replicable way every step of the empirical process. It’s all to the good, of course, but it is remarkable how little economists train our students in these techniques and make no mistake writing code to be replicable from day one is an art and a science and it needs to be part of the econometrics sequence. All hail Gentzkow and Shapiro!
Here’s more information:
On July 10, 2019, the Association adopted an updated Data and Code Availability Policy, which can be found at https://www.aeaweb.org/journals/policies/data-code. The goal of the new policy is to improve the reproducibility and transparency of materials supporting research published in the AEA journals by providing improved guidance on the types of materials required, increased quality control, and more review earlier in the publication process.
What’s new in the policy? Several items of note:
A central role for the AEA Data Editor. The inaugural Data Editor was appointed in January 2018 and will oversee the implementation of the new policy.
The policy now clearly applies to code as well as data and explains how to proceed when data cannot be shared by an author. The Data Editor will regularly ask for the raw data associated with a paper, not just the analysis files, and for all programs that transform raw data into those from which the paper’s results are computed. Replication archives will now be requested prior to acceptance, rather than during the publication process after acceptance, providing more time for the Data Editor to review materials.
Will the Data Editor’s team run authors’ code prior to acceptance? Yes, to the extent that it is feasible. The code will need to produce the reported results, given the data provided. Authors can consult a generic checklist, as well as the template used by the replicating teams.
Will code be run even when the data cannot be posted? This was once an exemption, but the Data Editor will now attempt to conduct a reproducibility check of these materials through a third party who has access to the (confidential or restricted) data. Such checks have already been successfully conducted using the protocol outlined here.
Keynote Address 2: (Ritz-Carlton Ballroom)
Tucker Carlson, “Big Business Hates Your Family”
That is from the recent National Conservatism Conference. Via Ilya.
The half-sceptic speaks like Socrates, I know only that I know nothing. The whole sceptic speaks like Francisco Sanches: Haud scio me nihil scire, I do not even know if I know nothing.
The end of reason is a weariness of thinking. Yet reason is so strong that even its weariness is a part of its strength and we dream rationally if we have learnt reason.
Those bits are from this (uneven) volume.
The data came from Facebook:
During Obama’s initial 2008 bid for office, his team had already embraced technology in a greater capacity than any before it, assembling massive email lists and other targeted initiatives that earned Obama historic fundraising tallies. But for 2012, campaign manager Jim Messina wanted to take things even further.
To get there, his staff needed to link what had previously been disjointed databases of voter information (collected by volunteers, pollsters, and other campaign workers) into a single, comprehensive pool unrivaled in detail and scope. Whereas most voter logs used by campaigns often list only names and telephone numbers, Obama’s advanced tool dove into specifics like age, race, district, and voting history: it allowed field workers to rank voters intelligently and not waste time chasing unlikely votes.
What are the best things to read on this topic? How does it work? Why is it difficult and expensive (to the extent it is)? How might current institutions be improved? And what determines bid-ask spreads in the relevant trading markets?
I thank you all in advance for your wisdom and counsel.
That is the subject of my latest Bloomberg column, and here are the closing bits:
So that means the trade war is really all about Huawei and Taiwan. If the U.S. persists in trying to eliminate Huawei as a major company, by cutting off its American-supplied inputs and intimidating foreign customers and suppliers for Huawei equipment, it will be difficult for the Chinese to accept. In this case, the reluctance to make a deal will be on the Chinese side, and the structure and relative power of the various American interest groups are not essential to understanding the outcome.
The question, then, is whether the U.S. national security establishment, and in turn Congress (which has been heavily influenced on this question), will accept a compromise on Huawei. Maybe that means no Huawei communications technologies for the U.S. and its closest intelligence-sharing allies, but otherwise no war against the company. That is the first critical question to watch in the unfolding of this trade war. The answer is not yet known, though it seems Trump is willing to deal.
The second major question, equally important but less commented upon, is Taiwan. China has long professed a desire to reunite Taiwan with the mainland, using force if necessary. If you belong to the U.S. national security establishment, and you think a confrontation with China is necessary sooner or later, if only because of Taiwan, you would prefer sooner, before China gains in relative strength. And that militates in favor of the trade war continuing and possibly even escalating, as the U.S. continues to push against China and there is simply no bargain to be had.
It is far from clear what a U.S.-China deal over the status of Taiwan could look like. How much Americans actually care about Taiwan is debatable, but the U.S. is unlikely to abandon a commitment that would weaken its value as an ally around the world. And unlike with Huawei, it is difficult to see what a de-escalation of this issue might look like.
So: If the Huawei and Taiwan questions can be resolved, then the trade war should be eminently manageable. Now, does that make you optimistic or pessimistic?
There is much more at the link.
3. Mulvaney, good piece.
6. The role of software in Apollo 11 (WSJ).
The FT writes about the bust in India’s construction sector:
It was meant to be the tallest building in India, with luxury flats, a swimming pool and cinema where billionaires and Bollywood stars could enjoy a life of perfect splendour looking down over the Mumbai skyline.
But the Palais Royale complex now sits unfinished alongside other partially built structures tangled in the megacity’s traffic-choked downtown streets, an apt symbol of a crisis that threatens a key part of India’s financial system.
Part of the problem is cyclic, a shadow banking system that overextended credit and is now having to deleverage. India’s construction sector, however, is also plagued by systematic issues including the fact that major construction projects are invariably sued and thus become entangled with India’s notoriously slow legal system. Drawing on a Brookings India working paper by Gandhi, Tandel, Tabarrok and Ravi the FT notes:
But progress was soon slowed by legal challenges over allegedly unauthorised features, sparking a series of delays….However grand the planned building, Palais Royale’s woes fit a familiar pattern: 30 per cent of real estate projects and half of all built-up space in Mumbai is under litigation, according to a 2019 Brookings India report, with projects taking an average of eight and a half years to complete.
This excellent Sarah Kliff NYT article is from a few weeks ago, but I missed it the first time around. Here is the clincher:
“The whole debate was about the rate mechanism,” said Mr. Frockt, the state senator. “With the original bill, with Medicare rates [for the state’s public option], there was strong opposition from all quarters. The insurers, the hospitals, the doctors, everybody.”
Mr. Frockt and his colleagues ultimately raised the fees for the public option up to 160 percent of Medicare rates.
“I don’t think the bill would have passed at Medicare rates,” Mr. Frockt said. “I think having the Medicare-plus rates was crucial to getting the final few votes.”
Nonetheless the piece is interesting throughout, and illustrates some basic dilemmas with health care reform and public options in particular, especially when a sector is controlled by powerful lobbies.
Here is the opening of a Jacob M. Schlesinger Wall Street Journal piece:
For decades, William Darity Jr. and Darrick Hamilton toiled in obscurity. They criticized mainstream economists and politicians for failing to address racial inequality, and touted more radical remedies of their own.
Now, with the 2020 presidential campaign under way and liberal Democrats ascendant, the two economists are in the spotlight, thrust into the middle of an intraparty debate over how much to embrace big government and a race-oriented message.
Their signature ideas—guaranteed jobs for all adult Americans seeking them, government-backed trust funds for American babies and reparations for slave descendants—are being talked about on the campaign trail and, in the case of reparations, during a raucous congressional hearing in June.
The two African-American economists’ theories on “stratification economics,” which focuses on economic gaps between whites and blacks, have helped shape the rhetoric and platforms of several candidates.
At a conference earlier this year for liberal activists, New Jersey Sen. Cory Booker told Mr. Hamilton he had “laid the foundation for a lot of things that we’re doing,” including “baby bonds.” Former Texas Rep. Beto O’Rourke name-checks Mr. Hamilton in television interviews, calling him an “extraordinary economist” who “talks about a more conscious capitalism.”
Mr. Hamilton, an Ohio State University professor, has advised the campaigns of California Sen. Kamala Harris on middle-class tax cuts, Vermont Sen. Bernie Sanders on job guarantees and Massachusetts Sen. Elizabeth Warren on student-debt relief.
And this section:
They have teamed up to write more than 50 articles for academic and popular journals and books, and pioneered what they consider a new field of scholarship they branded stratification economics. They contend that mainstream economists tend to regard racial discrimination as a short-term market glitch that market forces will correct eventually. That logic, they say, leads to the conclusion that persistent African-American woes result mainly from their own failings, such as inadequate education or poor financial choices.
Policy makers, they contend, focus too much on employment, income and education and not enough on family wealth across generations. They say wealth is a better measure of household economic security—the ability to weather emergencies, pay for education, afford homes in good neighborhoods and take risks.
I hope you subscribe or can get through the gate, as there are many meaty sections. One interesting angle, of course, is whether their claims and theories are true. But most of all this piece, and their role as advisers, marks the end of an era, namely that of mainstream consensus technocracy. The range of ideas being considered in politics today is remarkably wider than just a few years ago, for better or worse. And, whether we like to admit it or not, the academic world also will follow rather than just lead this process. If a plausible candidate pops up and starts making claims, especially on the Democratic side, the academic research supporting those claims will rise in status.
Fasten your seatbelts.
So yes, Taiwan does have the weirdest politics in the world right now. Here is a reprise from my Bloomberg column last week:
Another candidate vying for the KMT nomination is Han Kuo-yu, mayor of Kaohsiung and a blunt-speaking outsider populist. He has called for closer ties with China and is believed to be China’s favored candidate, calling China and Taiwan “two individuals madly in love.” It is believed that Chinese cyber-operatives have been working to promote his candidacy. He might be more interesting yet.
What if Han wins the general election and calls for “peaceful reunification” of the two Chinas, based on “one country, two systems”? Solve for the equilibrium! I see the following options:
1. They go ahead with the deal, and voila, one China!
2. The system as a whole knows in advance if this is going to happen, and if it will another candidate runs in the general election, splitting the KMT-friendly vote, and Han never wins.
2b. Han just doesn’t win anyway, even though his margin in the primary was considerable and larger than expected.
3. The current president Tsai Ing-wen learns from Taiwanese intelligence that there are Chinese agents in the KMT and she suspends the general election and calls a kind of lukewarm martial law.
4. Han calls for reunification and is deposed by his own military, or a civil war within the government ensues.
5. Han foresees 2-4 and never calls for reunification in the first place.
Well people, which of these would it be? Here is general background (NYT) on the new primary results.
Mutual optimism theory holds that mutually optimistic beliefs about outcomes cause international conflict. Because beliefs are unobservable, this theory is difficult to test systematically. Here, I present a clean test of theory that relies exclusively on observable variables by exploiting novel features of naval battles in the age of sail, most notably an admiral’s ability to avoid battle by simply sailing away. Using a formal model, I show that the outcome of mutual naval battles, where either side could avoid battle by sailing away, should not be predictable from observable capability indicators. The outcome of unilateral battles, where only one side could sail away to avoid fighting, should be predictable from these same indicators. I test these predictions against all squadron-level British naval battles from 1650 to 1833. I show that observable strength indicators are substantially less predictive in mutual battles, confirming the core key theoretical prediction.
Two or more each year?:
Longtime runners voiced their frustration that the event had been “totally adulterated” and said it was time to “say enough to the distortion of the run”.
The problem for purists is not just that the run, known as the encierro, has become too safe — with only two gorings last year, the least since 1984 — but that the bulls are unable to break free from the highly trained steers that accompany them. This makes the adrenaline-fuelled race less dangerous but also less exciting.
“For the runners, this is the end of the encierro as they know it,” said Joe Distler, a semi-retired American who ran the bulls for 50 years and took part in the protest in solidarity.
For regular runners, a good day is when the bulls break free from the cabestros — the castrated steers that accompany them over the 875-metre course to the city bullring — and one can feel the adrenaline-drenched thrill of running half a block directly in the front of a bull’s horns before letting it pass.
Here is more from Ian Mount at the FT. As you wish folks, but I for one am content to live “inside the algorithm.”