Markets in everything, Indian fake wedding edition

What comes to mind when you think of a big fat Indian wedding?

Dazzling lights, glittering outfits, Bollywood hits, a lavish spread of food and an atmosphere soaked in celebration. Everything feels extravagant, emotional and larger than life.

Now imagine all of that without the bride and groom. No pheras (a Hindu marriage ritual where the couple takes seven rounds around a sacred fire), no relatives, no tearful farewells. Just the party.

Welcome to the world of fake weddings – a rising trend in Indian cities where people gather to enjoy the wedding party, minus the actual marriage.

These ticketed events, organised by hotels, clubs and companies, are designed purely for fun and promise to offer the full experience of a wedding party without any stress, rituals or responsibilities. Simply put, it’s a wedding-themed party night…

Ticket prices typically start at around 1,500 rupees ($17; £13) and can go up to 15,000 rupees or more, depending on the venue and facilities. Shivangi and her friends paid 10,000 rupees per couple to attend.

Here is more from the BBC, and thanks to Rich Dewey for the pointer.

GPT-5, a short and enthusiastic review

I am a big fan, as on my topics of interest it does much better than o3, and that is saying something.  It is also lightning fast, even for complex queries of economics, history, and ideas.

One of the most impressive features is its uncanny sense of what you might want to ask next.  And it has a good sense for when to give you a (sometimes interactive!) chart or diagram.  It is a much better writer than o3.

I have had early access, and love to just keep on asking it, asking it, asking it questions.  Today I was asking about Irish coinage disputes from 1724 (Swift) and now about different kinds of Buddhism and their historical roots.  It was very accurate on cuisine in northern Ghana.

It is the best learning tool I have.  Furthermore, it feels fun.

Here is a review from Ethan Mollick.

What to Watch (or Not): Ballard, Perfect Days, Billy Joel

Ballard (Amazon Prime) — I liked Bosch, so I had high hopes for this spinoff. The core premise—a team of misfits solving cold cases—is solid enough but the writing is unimaginative and lazy. In one scene, Ballard is told she needs to get a confession. We expect clever interrogation tactics. Instead, she walks in and bluntly asks, “Did you shoot Yulia Kravetz?”

Maggie Q is charismatic but the writers don’t write for her. She’s exceptionally slim, for example, yet the show repeatedly asks us to believe she can physically overpower men twice her size. I have no problem with that in a superhero movie but it’s off putting in a show that pretends to be grounded and gritty. If you’re casting someone with that physique, write her as sharper, more cunning, more insightful—not as a female stand-in for macho Bosch.

Worst of all is the ending: a killer reveal that comes out of nowhere, with no foreshadowing or internal logic. The writers don’t understand the difference between a twist and a cheat. Disappointing.

Perfect Days (Hulu, Amazon)a 2023 Wim Wenders film that won the award at Cannes for “works of artistic quality which witnesses to the power of film to reveal the mysterious depths of human beings through what concerns them, their hurts and failings as well as their hopes.” The film follows the life of Hirayama (Kōji Yakusho, who won at Cannes for best actor) as he cleans public toilets in Tokyo’s Shibuya district. You will not be surprised to learn that the movie proceeds slowly. The toilets and the cleaning are the most interesting part of the first hour! I say this not as critique–I liked Perfect Days and the toilets really are interesting–only to illustrate the kind of movie that it is.

It helps to know the following from a useful Sean Burns review:

Komorebi is a Japanese word for the dancing shadow patterns created by sunlight shining through the rustling leaves of trees. There’s no equivalent term in English, and it’s tough to imagine any American caring enough to come up with one. But every afternoon on his lunch break, Hirayama (Koji Yakusho) takes a picture of the komorebi from his favorite park bench using an old Olympus film camera. Back at his apartment, he’s got boxes and boxes of black-and-white photos of the same spot, every one of them unique. Subtle shifts of the light and swaying branches in the breeze make similar snapshots strikingly different every time. Indeed, the whole concept behind komorebi is that it can exist only in a moment, never to be repeated. “Next time is next time,” Hirayama’s fond of saying, “Now is now.”

https://www.archilovers.com/stories/30456/why-architects-should-watch-perfect-days-by-wim-wenders.html

Although I would disagree with Burns slightly because there is an English term for something related to komorebi and that is crown shyness, the phenomena where trees grow in such a way that their branches keep from touching one another creating a canopy of closeness yet also distance. Indeed, I would argue that crown shyness expresses more of what the movie is about than komorebi.

A key question that divides reviewers is whether Hirayama is happy or content. The standard interpretation is that he has found, as Davis puts it, “beauty in the routine,” stopping to smell the roses. Yes, that is one aspect, but the routine is also a narcotic for the lost. Hirayama is estranged from his family. Barkeeps like him but all his relationships are superficial. He plays a game with a “friend” he never meets—distance and disconnection are everywhere.. In two scenes he finds meaning and joy in looking after a child but in both these scenes the child’s mother quickly rips the child away. Hirayama’s work partner disappears in the second half of the film. He almost makes connections with three women but in each case, crown shyness intervenes. He takes pride in his work but is operating well below his ability. He is isolated, alone, and without someone else to share a life, he is incomplete.

There are great scenes and music in Perfect Days, including a beautiful scene in which a Japanese hostess (Sayuri Ishikawa) sings House of the Rising Sun.

Billy Joel: And So It Goes (HBO) — 52nd Street was one of my favorite albums as a youth and it was fun to revisit his career. Billy Joel’s first wife, Elizabeth Weber, was the muse for many of his early songs including Big Shot and Stiletto:

She cuts you hard, she cuts you deepShe’s got so much skillShe’s so fascinatingThat you’re still there waitingWhen she comes back for the killYou’ve been slashed in the faceYou’ve been left there to bleedYou want to run awayBut you know you’re gonna stay‘Cause she gives you what you need

She is indeed, fascinating! Wow. Even today, she comes across as formidable.

I thought a lot about genetics while watching And So It Goes. Joel’s father was a classical musician, though his only notable comment on Billy’s playing was to knock him unconscious for taking too much liberty with a piece. The father left when Billy was eight. Not much nurture. Years later, they reunite in Vienna—where Joel discovers he has a half-brother, Alexander Joel, a successful pianist and conductor.

Joel grew up poor, but his paternal grandfather had been a wealthy Jewish businessman in Germany until the Nazis forced him out. His mother, Rosalind, was also musical, but her primary inheritance may have been bipolar disorder. Joel’s mental health struggles are never explicitly named in the documentary, but the signs are everywhere: an early suicide attempt, alcoholism, repeated motorcycle and car crashes of a self-destructive nature. The emotional cycles also help explain the pattern of intense, short-lived marriages to beautiful and accomplished women—Weber, Christie Brinkley, Katie Lee, and Alexis Roderick. In his highs, he was irresistible. In his lows, unbearable. He goes to extremes.

Critics didn’t always love Joel’s music, but his catalog has become part of the American songbook. Proof of something Tyler and I often discuss, the power of simply keeping going.

The consumer surplus from AI

Our research, with Felix Eggers, widens the lens and finds that Americans already enjoyed roughly $97 billion in “consumer surplus” from generative AI tools in 2024 alone. Consumer surplus—the difference between the maximum a consumer is willing to pay for a good or service and its actual price—is a more direct measure of economic well-being than GDP. Generative AI’s $97 billion in consumer surplus dwarfs the roughly $7 billion in U.S. revenue recorded by OpenAI, Microsoft, Anthropic and Google from their generative AI offerings last year. It doesn’t appear in GDP because most of the benefit accrues to users rather than the companies.

That is from Avinash Collis and Erik Brynjolfsson in the WSJ.

My entertaining Conversation with Annie Jacobsen

Here is the audio, video, and transcript.  Here is part of the episode summary:

Tyler and Annie explore whether we should be more afraid of nuclear weapons or if fear itself raises the risks, who should advise presidents during the six-minute decision window, whether moving toward disarmament makes us safer or more vulnerable, what Thomas Schelling really meant about nuclear war and rational actors, the probability that America would retaliate after a nuclear attack, the chances of intercepting a single incoming ICBM, why missile defense systems can’t replicate Israel’s Iron Dome success, how Pakistan-India nuclear tensions could escalate, why she’s surprised domestic drone attacks haven’t happened yet, her reporting on JFK assassination mysteries and deathbed phone calls, her views on UFOs and the dark human experiments at Area 51, what motivates intelligence community operators, her encounters with Uri Geller and CIA psychic research, what she’s working on next, and more.

Excerpt:

JACOBSEN: I quote him in the notes of my book, and this is perhaps the only regret I have in the entire book, that I put this quote from Schelling in the notes rather than in the text. Maybe it’s more interesting for your listeners if we drill down on this than the big platitudes of, “Do more nuclear weapons make us more safe?” It goes like this. This was Schelling in an interview with WGBH Radio in 1986 in Boston.

He says, “The problem with applying game theory to nuclear war is that nuclear war, by its very nature, does not involve rational men. It can’t. What sane person would be willing to kill hundreds of millions of people, ruin the earth, and end modern civilization in order to make somebody called the enemy doesn’t win first?”

COWEN: But Schelling did favor nuclear weapons. That was his dark sense of humor, I would say.

JACOBSEN: You think what I just read was his sense of humor?

COWEN: Absolutely.

JACOBSEN: I believe it was a man in his elder years coming to the conclusion that nuclear war is insane, which is the fundamental premise that I make in the book.

COWEN: You can hold both views. It is insane, but it might be the better insanity of the ones available to us.

JACOBSEN: Yes. From my take, he, like so many others that I have interviewed, because, for some reason — call it fate and circumstance — I have spent my career interviewing men in their 80s and 90s, who are defense officials who spent their entire life making war or preventing war. I watch them share with me their reflections in that third act of their life, which are decidedly different — in their own words — than those that they would have made as a younger man.

I find that fascinating, and that’s my takeaway from the Schelling quote, that he came to terms with the fact that intellectualizing game theory — like von Neumann, who never got to his old age — is madness.

COWEN: Let’s say that Russia or China, by mistake, did a full-scale launch toward the United States, and they couldn’t call the things back, and we’re in that six-minute window, or whatever it would be with hypersonics. What do you think is the probability that we would do a full-scale launch back?

COWEN: The word madness doesn’t have much force with me. My life is a lot of different kinds of madness. I’ve heard people say marriage is madness. A lot of social conventions seem to me to be madness.

The question is getting the least harmful form of madness out there. Then, I’m not convinced that those who wish to disarm have really made their case. Certainly, saying nuclear war is madness doesn’t persuade me. If anything, if enough people think it’s madness, we won’t get it, and it’s fine to have the nuclear weapons.

A different and quite stimulating episode.

Did the Minnesota housing reform lower housing costs?

Yes:

In December 2018, Minneapolis became the first U.S. city to eliminate single-family zoning through the Minneapolis 2040 Plan, a landmark reform with a central focus on improving housing affordability. This paper estimates the effect of the Minneapolis 2040 Plan on home values and rental prices. Using a synthetic control approach we find that the reform lowered housing cost growth in the five years following implementation: home prices were 16% to 34% lower, while rents were 17.5% to 34% lower relative to a counterfactual Minneapolis constructed from similar metro areas. Placebo tests document these housing cost trajectories were the lowest of 83 donor cities (p=0.012). The results remain consistent and robust to a series of subset analyses and controls. We explore the possible mechanism of these impacts and find that the reform did not trigger a construction boom or an immediate increase in the housing supply. Instead, the observed price reductions appear to stem from a softening of housing demand, likely driven by altered expectations about the housing market.

That is from a new paper by Helena Gu and David Munro.  Via the excellent Kevin Lewis.

The Sri Lankan economic recovery (from my email)

Hi,

I’m a macroconsultant/analyst based in Sri Lanka. Was suddenly reminded of your 2023 MR piece on Sri Lanka – soon after the depth of the crisis locally.
Since then, Sri Lanka has seen what I think to many is a remarkable turnaround on both the macro fundamentals and the social indicators (admittedly data is very divergent on social).
A few specific points on the macro –
– 2 years of twin surpluses (after 70+ years of twin deficits)
– Looks in line to do a 3rd year of twin surpluses alongside 5% growth
– Income tax collections growing 20%+ YoY without any text increases
– 4% of GDP in net government LCY balances vs historic deficits
– Gross capital formation rising dramatically without government capex spending
– Credit recovery without government spending to support private income
– Remittances (possibly cyclical), oil imports (massive distributed solar), and net port services (ME diversion+new capacity) overperforming IMF numbers by 1-2% of GDP
– Net foreign assets of banking system at ~2% of GDP
– Currency appreciated and stable from crisis peaks
– Inflation averaging 0% 3 years after crisis (+ energy driven deflation spots)

TC again: thanks to Chayu Damsinghe from Frontier Research.  A true reversal of fortune, at least for the time being…

Solve for the equilibrium

The title of the paper is “Terrorism and Voting: The Rise of Right-Wing Populism in Germany.”  Here is the abstract:

We document that right-wing terrorism leads to significant increases in vote share for the right-wing, populist AfD (Alternative fur Deutschland) party in Germany. To identify causal effects, we exploit quasi-random variation between successful and failed attacks across municipalities. Using the SOEP, a longitudinal panel of individuals, we find successful terror leads individuals to prefer the AfD and worry about migration. Political parties—the AfD in particular—adjust their messaging in election manifestos in response to terror. Overall, and in contrast to previous work, we find terrorism is consequential to the rise of right-wing populism in a Western, multiparty democratic system.

Note that is “right-wing terrorism,” not Islamic terrorism.  The piece is by Navid Sabet, Marius Liebald, and Guido Friebel.

Regulatory Complexity and Rents

Luis Garicano on the EU-US trade deal.

…The growing regulatory complexity and arbitrariness of the tariff regime provides rents to those connected with power, not to innovators. It is a recipe for the biggest enemy of growth: regulatory overkill and crony capitalism. Consider the example of importing a can of beer from Belgium into the US. There is a 10% country-specific tariff on the entire value of the product. On top of this, the aluminium can itself is treated as a completely separate product, subject to its own additional tariff of up to 50%. The level of this tariff is based on the nearly untraceable origin of the raw metal—the country where the aluminium was “smelted and cast.” The tariff rises to 200% if the country is unknown. This forces an importer to research the obscure global supply chain of a minor component and apply multiple, overlapping tax rates to a single, everyday item.

Many other interesting comments.

New data on tenure

Tenure is a defining feature of the US academic system with significant implications for research productivity and creative search. Yet the impact of tenure on faculty research trajectories remains poorly understood. We analyze the careers of 12,000 US faculty across 15 disciplines to reveal key patterns, pre- and post-tenure. Publication rates rise sharply during the tenure-track, peaking just before tenure. However, post-tenure trajectories diverge: Researchers in lab-based fields sustain high output, while those in non-lab-based fields typically exhibit a decline. After tenure, faculty produce more novel works, though fewer highly cited papers. These findings highlight tenure’s pivotal role in shaping scientific careers, offering insights into the interplay between academic incentives, creativity, and impact while informing debates about the academic system.

Here is the paper.  That is by Giorgio Tripodi, Ziang Zheng, Yifan Qian, and Dashun Wang, via the excellent Kevin Lewis.