Bryan Caplan, REPENT YOUR LOVE FOR THOMAS REID!
Here is a fascinating article from The New Yorker, mostly about itching but not just. Here is my favorite part:
A new scientific understanding of perception has emerged in the past few decades, and it has overturned classical, centuries-long beliefs about how our brains work–though it has apparently not penetrated the medical world yet. The old understanding of perception is what neuroscientists call “the naïve view,” and it is the view that most people, in or out of medicine, still have. We’re inclined to think that people normally perceive things in the world directly. We believe that the hardness of a rock, the coldness of an ice cube, the itchiness of a sweater are picked up by our nerve endings, transmitted through the spinal cord like a message through a wire, and decoded by the brain.
…Yet, as scientists set about analyzing the signals, they found them to be radically impoverished. Suppose someone is viewing a tree in a clearing. Given simply the transmissions along the optic nerve from the light entering the eye, one would not be able to reconstruct the three-dimensionality, or the distance, or the detail of the bark–attributes that we perceive instantly.
…The images in our mind are extraordinarily rich. We can tell if something is liquid or solid, heavy or light, dead or alive. But the information we work from is poor–a distorted, two-dimensional transmission with entire spots missing. So the mind fills in most of the picture. You can get a sense of this from brain-anatomy studies. If visual sensations were primarily received rather than constructed by the brain, you’d expect that most of the fibres going to the brain’s primary visual cortex would come from the retina. Instead, scientists have found that only twenty per cent do; eighty per cent come downward from regions of the brain governing functions like memory. Richard Gregory, a prominent British neuropsychologist, estimates that visual perception is more than ninety per cent memory and less than ten per cent sensory nerve signals.
And sorry, readers, for shouting in the header; sometimes I get carried away. By the way, don’t let defenders of naive realism tell you that any attempt to contradict it is self-refuting. Science proceeds in pieces, cross-tested in various ways, and the sum total of those pieces can revise our understanding away from naive realism without producing self-contradiction.
Leonid Hurwicz passes away at 90
He was a Nobel Prize winner last year, here are obituaries. Here are our previous blog posts on him and his work.
RSS queries
As many of you know I am anti-RSS but I would like to understand the phenomenon better. So I have a few questions for you. What feature in an RSS reader do you not have but long for? What would cause you to switch from one reader to another? Would you ever consider a reader that forced ads on you, bundled up with the delivered post?
Don’t worry, we’re not planning or even contemplating changes in our RSS feed, I simply would like to learn.
Assorted links
1. Something else happens, via Bruce Charlton
2. "Civil War," an excellent new paper by Chris Blattman and Edward Miguel
3. Convenience yield, an excellent introduction; by the way Jeffrey Williams is a good author on the intuitive properties of futures and forward markets as they relate to storage.
4. The Japanese equivalent of the Hummer.
5. How to hire new people, by Auren Hoffman
6. Whose incomes are growing riskier? It’s only about five percent of the distribution.
Grand New Party
The authors, Ross Douthat and Reihan Salam, invited me to their book party at Borders — and I wanted to meet them — but no I must stay home and read and blog their book! (I wrote this post last night.) If there was rush hour road pricing, as indeed they propose, I would have been there in a flash but no I am munching on cherries on my sofa.
The subtitle is "How Republicans Can Win the Working Class and Save the American Dream" and the Amazon link is here. Their favored policies include the following (with varying degrees of enthusiasm/utopianism on their part):
1. Family-friendly tax reform.
2. Sprawl is OK or at least it could be with rational traffic management policies.
3. Government reinsurance for catastrophic health care expenses, plus they consider the Brad DeLong health care plan.
4. Abolition of the payroll tax for many lower-income earners.
5. Allocate money to public schools on a student-weighted basis, as is done in San Francisco.
6. Reallocate funding toward lower-tier state universities and away from flagship schools.
7. Don’t expect old-style unions to come back.
That is only a sampling. The broader vision is that the Republicans can and must find a way to be more friendly to the non-rich. Personally I don’t see any reason to tie all of this to the Republican Party but I agree with most of their proposals. There’s a great deal of common sense here and it stands as one best general policy books in a long time.
The deep question is why something like this hasn’t already happened. You’ll find the superficial "Republicans are just pro-corporate crooks" answer from bloggers like Kathy G. Another possibility is that Republicans don’t get much electoral credit for pro-poor initiatives (just as many voters simply won’t believe that "Democrats can be tough"). The more competitive political messaging becomes, the more this constraint binds and so the policies of upward redistribution are more likely to be enacted by Republicans in the resulting political equilibrium. If the authors are to get their way somehow this dynamic must be reversed.
Addendum: I’ve met Reihan only in passing and I have not had substantive correspondence with either of the authors. Nonetheless the authors thank me in the conclusion for having saved them from "all manner of errors"; maybe this is another instance of the influence of blogs.
Second Addendum: You’ll find links to video and audio on the book at Ross’s blog.
Obama’s iPod
Thank you all for your contributions, here is my new insight into Obama, it won’t be new for long:
Obama
said that, growing up, he listened to Elton John and Earth, Wind &
Fire but that Stevie Wonder was his ultimate musical hero during the
70s. The Stones’ track Gimme Shelter topped his favourite songs from the band. His
selection also contained 30 songs from Dylan. "One of my favourites
[for] the political season is [Dylan’s] Maggie’s Farm. It speaks to me
as I listen to some of the political rhetoric."…The jazz legends Miles Davis, John Coltrane and Charlie Parker were also included…
The worship of Dylan and Wonder and be-bop jazz is consistent with my view of him as a detached, universalist cosmopolitan.
Will mankind survive the death of the sun?
In reference to my Bloggingheads appearance, one loyal MR reader emails me:
you said don’t be certain, be 90-10 or 60-40 then [you] said 1-99 that humanity dies out when sun’s gone.
Yes, I believe the chance is very small that humanity survives the death of our sun or even gets close to that point. I’ll give it p = .005. But what’s the chance I think that is the correct p or even in the neighborhood of the correct p? Maybe 60 percent. Of course my p estimate could go either up or down and after I apply meta-rationality p = .005 is where I end up, for better or worse. I expect that fragile estimate to undergo lots of revision as I age, read more, etc. I just don’t know if it will go up or down, thereby satisfying one of Robin Hanson’s canons of rationality (or some approximation thereof).
Why am I skeptical? The Fermi paradox, for one thing, plus I observe that humans aren’t very good at solving large-scale collective action problems. Our environment may be more fragile than we had thought and that’s without even considering the impact of man.
Arnold Kling is exasperating Paul Krugman
Krugman writes here on why speculation is not driving higher oil prices and offers a simple model here. I agree with Krugman’s conclusion but not his reasoning. Arnold Kling responds here and basically Arnold is right although his #2 on the Hotelling principle is trickier than his exposition indicates. The key two points in response to Krugman are: a) oil in the ground can substitute for inventories and thus speculation can be driving prices higher without it showing up in measured inventories; here’s that reasoning in more detail, and b) when risk and liquidity premia are changing, the relationship between the spot price and futures price is obscure and difficult to interpret. In particular a futures price for oil below the spot price does not refute the speculation hypothesis or even provide much evidence against it.
The more general point is that if a bubble, or lack thereof, could be read so easily from the available numbers, bubbles would be scarcer than they are. There’s also a tricky problem in defining a bubble when there is two-way feedback across price and expectations and "fundamental value" at any one point in time itself depends on the marginal unit of supply and thus it depends supplier decisions and expectations.
My apologies to those whom I am exasperating.
If Krugman’s cited data don’t do the trick, why do I agree with his conclusion that speculation is not the villain? The simplest alternative story, again blogged by Arnold, is that the earlier low price of oil was an anti-bubble of sorts and one which now has been corrected by market forces. It was a kind of collective blindness, akin to the view that real estate prices would continue rising in value. No, I can’t prove that is true but I find it the most plausible story, with p (truth) = 0.57.
Addendum: Note that most asset bubbles are based on the psychological property that bullishness is more common than bearishness in asset markets, if only for ESS reasons. This same general bullishness can drive "anti-bubbles" or artificially low prices in oil markets (high oil prices are bad for good times) even though yes I know that sounds funny and we are used to bubbles bringing artificially high prices.
Second addendum: Paul Krugman responds.
My favorite song
Ever, with explanation and the MP3 link on the left. And here are the lyrics.
Addendum: The guy actually has the best practical idea I’ve heard yet for your time travel trip back to 1000 A.D. If you have a decent voice, use the catalog of the Beatles and others to become the greatest minstrel the world has seen. It’s the low capital costs and low cooperation requirements that make the idea so appealing.
The power of “because”
Behavioral scientist Ellen Langer and her colleagues decided to put the persuasive power of this word to the test. In one study, Langer arranged for a stranger to approach someone waiting in line to use a photocopier and simply ask, "Excuse me, I have five pages. May I use the Xerox machine?" Faced with the direct request to cut ahead in this line, 60 percent of the people were willing to agree to allow the stranger to go ahead of them. However, when the stranger made the request with a reason ("May I use the Xerox machine, because I’m in a rush?"), almost everyone (94 percent) complied…
Here’s where the study gets really interesting…This time, the stranger also used the word because but followed it with a completely meaningless reason. Specifically, the stranger said "May I use the Xerox machine, because I have to make copies?"
The rate of compliance was 93 percent.
That is from Bob Cialdini’s Yes! 50 Scientifically Proven Ways to be Persuasive; here is my previous post on the book. And here is why motivational posters don’t work.
Markets in everything, Japan edition (again)
You could devote an entire blog to this category:
Japanese toy company People has released a new age alarm clock
that supposedly helps kids wake up by turning them into Ultraman. It’s
called the Okiro! Asa Ichiban Taiyou Senshi – Charenjaa Kitto (Wake up!
First Sun Warrior of the Morning
– challenger kit) and was manufactured for the Japanese Ministry of
Education “early to bed early to rise” program. The $38 kit comes with
the extravagant eye shield and helmet; a series of talismans and
message cards (no doubt world-saving secret missions); and a 27-day
program that will involve your child taking orders from "the commander."The commander wakes the child up at 6 a.m., and prompts players to put
on the helmet and hit a "roger" button to acknowledge their
wakefulness. Then, they are ordered to count to 10 in five different
languages: English, Japanese, German, Swahili and Malagasy. At that
point, the player is "allowed to take off the equipment and start the
day"…
Here is the full story (with illustrations) and thanks to Yana and Caleb for the pointer. What if you can’t count to ten in Malagasy? What happens to the rest of your day? Keep this link in mind or maybe try How to Get a Date in Malagasy.
Is there anything new to say about Barack Obama?
I, for one, have nothing new to say about Barack Obama, even though I am exposed to more news about him than any other single person. I wish I did, but I don’t.
Do you? Does anyone? Comments are open, the stipulation is that you must believe what you write about him genuinely represents new insight; it’s OK if it’s already appeared on your blog, provided it is not a major one, or you can link to the thoughts of others. Please respect our usual standards of politeness.
Will anyone have anything to say? Should I hope you do or don’t have anything new to say about him?
The law and economics of surfing
When oh when will this be a Journal of Law and Economics piece? Here is one excerpt:
The norms (for visitors) of mild localism include:
1) Don’t arrive in a large group[156]
2) Ease into the lineup (don’t compete aggressively too early)[157]
3) Let locals surf most of the best set waves[158]
4) Take extra caution to avoid violating any ordinary surf norms (i.e. don’t get in a local’s way!)
Together, these concrete norms can implement the abstract norm of ‘respect the locals’. Observing these norms demonstrates deference to the locals and helps mitigate the effects of crowding for the locals.
Here is the full treatment, the piece is interesting throughout though it starts off a bit slow with the familiar. Thanks to Hugh for the pointer.
China/Syria Fact of the Day
I have been talking with GMU President Alan Merten, who is also in Kunming via Syria. In Syria, Alan was surprised when he was asked to meet with President Bashar al-Assad. Even more surprising, the President wanted to talk about entrepreneurship, GMU, and how Syria can benefit from better economics.
Later, talking with the Finance minister, Merten learned one of the key drivers of this new openness. The Finance minister explained that he was meeting with a counterpart in the Chinese government. "What can we do," the Syrian Finance minister asked, "to increase Chinese investment?" "Well," the Chinese minister replied, "before we invest in Syria you most open your markets, cut your subsidies, and reduce regulation…"
What if the shyness drug boosts confidence?
Under one scenario, the shy become more extroverted and everyone enjoys their new bon mots and witty asides. Gains from trade increase all around. Under another scenario, shyness and extroversion are part of a larger positional game. Some people take the anti-shyness drug, but the previous extroverts, facing new competition for sex and friends, become even more extroverted, thus feeling more strain. Many of them start taking the drug to stay ahead. The previously shy exhibit more "juice," so to speak, but without much net result in terms of an improved life since they are still coming in second, so to speak. And those who don’t take the anti-shyness drug are even worse off than before, given the new and higher standard for extroversion.
Some of the remaining shy, however, might in fact feel relieved. If the new standard of extroversion rises so high that they can’t possibly meet it, they might, to some extent, withdraw from social competition. The truly shy might even form social clubs and band together in the interests of promoting shyness. If they can signal that they do not take the drug, their shyness might become more socially acceptable than before.