Results for “ostrom”
59 found

Women in Economics: Janet Yellen

Here’s a great new video on Janet Yellen from our team at MRU. In addition to Yellen, the video features Ben Bernanke and Christina Romer, who is tremendous. Other videos in the series are on Anna Schwartz and Elinor Ostrom with more on the way. The video is excellent but my favorite MRU video with Yellen has her in superhero mode.

Instructors, feel free to use these videos in any of your classes. Of course, you can also find these videos integrated with our textbook.

By the way, here is Adams and Yellen’s classic paper on bundling (ungated) and you can find an introduction to bundling in this video.

Assorted Saturday links

1. “Russian scientists tracking migrating eagles ran out of money after some of the birds flew to Iran and Pakistan and their SMS transmitters drew huge data roaming charges.

2. The success rate of protests is plummeting (NYT).

3. The Gilded Age?: “New paper forthcoming in Cliometrica with Peter Lindert. In the paper we show that between 1800-1914, inequality in cost of living fell offsetting sizable share of increase in nominal income inequality”.

4. How bad is it to be “scooped” in science?  And how much do astronomers rely on lucky good weather?

5. Research in progress: “First, I document that opioid deaths and religiosity are strongly negatively correlated across counties. Then, I find that an 8% decrease in religious employment – equivalent to the decrease observed since the height of the Catholic sex abuse scandal – would increase opioid deaths by 4.8 per 100,000, approximately a third of the current opioid epidemic. The effects of religiosity are concentrated in areas with higher Catholic rates before the scandal. In contrast, I find no evidence that religiosity affects other drug deaths, suicides, or mortality due to alcoholic liver disease.”

Street-by-street zoning

That is the theme of my latest Bloomberg column, think of it as a new way to push for YIMBY.  Here is one excerpt:

I call this idea “street by street zoning,” and it has been outlined in a recent paper by John Myers, co-founder of London YIMBY. The basic idea is simple: Let each street decide on its own how it wants to zone commercial activity, including construction. Of course, in some contexts the deciding entity won’t be a street but rather a block or some other very small neighborhood area.

That might sound a little crazy, like a 1960s hippie commune dream. Yet the idea has hidden potential. If streets chose their own zoning, city-level zoning rules could be quite general and open-ended, opening up the possibilities for more construction and also for more mixed-use neighborhoods. With that liberalizing backdrop, residents on any given street always have the option of more restrictive zoning.

The upside is that street-by-street zoning would allow so much room for experimentation. Some zoning reforms might increase home values; a street might decide to allow for multiple dwellings on a lot (an in-law apartment in a backyard barn?), or make it easier to “upzone” by making it easier to rebuild. And what about allowing, say, a small Sichuan restaurant on each residential street — would that boost home values? Maybe not, but at least there’d be a way to find out.

And:

Some of these problems may be a feature rather than a bug. If outside developers find local communities easier to manipulate than a city-wide board, it may actually result in more new construction. If neighbors on some streets really are not sure what they want, maybe it’s not a bad thing if they are nudged toward approving more new construction.

Imagine dealing with the developers on Coasean terms.  There is much more analysis at the link.

*The AI Does Not Hate You*

That is the new book by Tom Chivers, and the subtitle is Superintelligence, Rationality and the Race to Save the World.  Here is one excerpt:

Overall, they have sparked a remarkable change.  They’ve made the idea of AI as an existential risk mainstream; sensible, grown-up people are talking about it, not just fringe nerds on an email list.  From my point of view, that’s a good thing.  I don’t think AI is definitely going to destroy humanity.  But nor do I think that it’s so unlikely we can ignore it.  There is a small but non-negligible probability that, when we look back on this era in the future, we’ll think that Eliezer Yudkowsky and Nick Bostrom  — and the SL4 email list, and LessWrong.com — have saved the world.  If Paul Crowley is right and my children don’t die of old age, but in a good way — if they and humanity reach the stars, with the help of a friendly superintelligence — that might, just plausibly, be because of the Rationalists.

There is also material covering Scott Alexander and Robin Hanson, among others.  Due out in the UK in June.

Why do states privatize their prisons?

Why Do States Privatize their Prisons? The Unintended Consequences of Inmate Litigation.” (Job market paper).
The United States has witnessed privatization of a variety of government functions over the last three decades. Media and politicians often attribute the decision to privatize to ideological commitments to small government and fiscal pressure. These claims are particularly notable in the context of prison privatization, where states and the federal government have employed private companies to operate and manage private correctional facilities. I argue state prison privatization is not a function of simple ideological or economic considerations. Rather, prison privatization has been a (potentially unintended) consequence of the administrative and legal costs associated with litigation brought by prisoners. I assemble an original database of prison privatization in the US and demonstrate that the privatization of prisons is best predicted by the legal pressure on state corrections systems, rather than the ideological orientation of a state government. PDF of most recent version here, comments welcome.​ Appendix here.

Do Private Prison Companies Suffer When Inmates Win Lawsuits? The central claim of my dissertation argues it is the advent of inmates’ rights and rising prisoner litigation that contributed to the rise of prison privatization in the state. A separate dissertation chapter considers this relationship from the viewpoint of the business: is it the case that the economic future of the company is vulnerable to the announcement of successful court orders? I use event study methodology and find I find that on aggregate, investors are not particularly concerned with these judicial decrees. Rather, investors respond to the lawsuits in those states that are the most consequential for private prison firms’ business. This chapter fleshes out the behavior of private prison companies and provides further empirical evidence for the central claim of the dissertation, that private prison firms are indeed vulnerable to the announcement of court orders.

Those are new papers by Anna Gunderson, Ph.D candidate in political science from Emory, starting at Louisiana State, and I note she just won the Elinor and Vincent Ostrom award from the Public Choice Society.  Here is her home page.

Women in Economics

Tyler and I are very pleased to announce a new series at MRU, Women in Economics.

Women in Economics highlights the groundbreaking and inspiring work of female economists – not only to recognize the important work they’ve done but to also share their inspirational journeys.

Our first major video on Elinor Ostrom will be released on February 12 followed by videos on Janet Yellen (featuring Christina Romer and Ben Bernanke), Anna Schwartz (featuring Claudia Goldin), Joan Robinson and more. We also have some more informal “mini-testimonials” discussing the work of some major contemporary economists who have been inspirational. In the video below I discuss the work of Petra Moser. (I should have cleaned my office.)

Tyler and I also want to take a moment to thank the fantastic team at MRU for a huge amount of creativity, inspiration and hard work in putting this series together. Lots of thanks and appreciation to Roman Hardgrave, Alexandra Tooley, Mary Clare Peate, Brandon Davis, Justin Dile, Lindsay Moss and William Nava. You too can join the team!

More here.

Friday assorted links

1. Scott Sumner on Stubborn Attachments.

2. Excellent and accurate review of Anna Burns’s Milkman, a strong and enduring work of fiction about Northern Ireland.

3. On the constancy of the rate of gdp growth.

4. Smithsonian scholars pick their favorite books of the year.

5. Nick Bostrom has a new paper on the vulnerable world hypothesis (pdf).

6. Paul Romer on how to boost science (WSJ).

Coasean Skies

Air taxis and delivery drones may soon make the airspace between 200 and 5000 feet above ground level much more valuable. How is this airspace to be regulated? In a very good new paper Brent Skorup draws on Coase, Demsetz, and Ostrom and the law, economics and history of regulated commons to suggest new approaches.

[T]he technological shock—the commercialization of air taxis—will create novel urban airspace scarcity and collective action conflicts. When intended uses conflict, how should airspace be allocated? This is an old problem: the transformation of a common-pool resource in the face of intensive new uses for that resource.

…For traditional aviation, air traffic management is centralized and relies on complex collaboration between airlines, the general aviation industry, air traffic controllers, and regulators. Aircraft routes, payload, slot fees, airport locations, billing, and safe separation between aircraft are all highly regulated components of this interconnected system. Massive economic distortions result from the regulated rationing of airspace and terminal access. Low-altitude airspace (i.e.,200 feet to 5000 feet above ground level) offers a relatively blank slate to explore new models for air transport and to avoid command-and-control mistakes made in the past in aviation.

…Section IV introduces a different idea: that the FAA instead delimit geographic tracts of low-altitude airspace and assign exclusive use licenses to those tracts via auction for a term of years. Flight path, speed, terminal locations, aircraft size, UTM technologies, and pricing choices would largely be delegated to the tract licensees. Finally, Section V explains why this approach, which draws on real-world examples from spectrum auctions and other federal asset markets, may offer more competitive UTMs and dynamic efficiencies for low-altitude air transit. This auction approach also allows aviation regulators to focus less on scientific management of airspace and UTM interoperability and more on aircraft safety, dangerous weather, and inspections.

Pareto Principles in Infinite Ethics

I’ve been reading the dissertation of that title by Amanda Askell, following her podcast with Robert Wiblin.  And there is also the work of Nick Bostrom on “infinite ethics.”

In the thesis, Amanda considers the possibility that world-states might simply be incomparable when there are an infinite number of relevant beings and infinite total utility in the universe, as seems to be implied by some cosmologies.

That in turn conflicts with the notion that agents are “locations of goodness.”  If you give me some chocolate ice cream, it seems I am better off, and that judgment ought to be allowed to proceed without undue attention being paid to the broader cosmos.  Yet that will imply pairwise comparisons are possible in an infinite universe, if only through the Pareto principle.  But when you compare two overall states of the (infinite) universe in pairwise fashion, it is hard to see what value the “new” ice cream cone brings, because both ex ante and ex post there is an infinite consumption of ice cream.

Maybe the view that agents are locations of goodness doesn’t make sense when paired with infinities.  Might the apparent increase in ice cream mean — whether in some causal sense or not — that still the total number of ice cream-eating beings in the universe has not increased, because if it had the infinity would not have held in the first place?  Metaphysically speaking, one ice cream might push out the other.  Sadly, my (finite) mind cannot readily deal with the intuitions, nor what happens if you try to imagine what kind of infinities we are dealing with, a’la Cantor.

Still, I will gladly accept the assumption of incomparability across different world-states in an infinite universe.  In fact I view incomparability in the infinite universe case as the friend of comparability in the world we live in.  It is by no means certain that the universe is infinite, but there is some chance it is infinite.

When doing expected value calculations, we need to take account of both possibilitites, namely that the universe may or may not be infinite.  But if the infinity scenarios all lead to incomparability across various options (if indeed they are “options” to begin with), you can argue that the calculations for the finite universe scenario dominate the final calculus that we face today, operating under agnosticism about the nature of the universe (infinite or not).  Which brings us back to finite universe ethics and persons being locations of value.  And chocolate ice cream.

Another way to put this is that worrying about infinities “too much” ends up meaning you don’t have to worry about them at all.

Michael Nielsen, standing on one foot

A highly sophisticated MR reader demanded a dose of Michael Nielsen.  I wrote to Michael, and he was kind enough to oblige.  Everything that follows is from Michael, here goes:

I started with the question “What might amuse Tyler?”, and it became very easy.

Three opinions that may amuse MR readers:

1. Peter Thiel has said: “We wanted flying cars, instead we got 140 (280) characters.” Thiel is wrong: 280 characters are much, much better than flying cars. Twitter is misunderstood as being an online service; it’s merely the online component of a much improved offline experience. Twitter DM’s are a superpower, one of the most valuable ways of connecting people ever invented. More on one way of using Twitter here.

2. Movies are primarily a visual form; movie criticism and the popular conversation about movies are primarily a literary form, and informed by literary sensibilities. This is why good movies such as Transformers are so underrated. People who dismiss such movies are mostly revealing their own ignorance.

3. Many corners of the internet have a culture of judgement or argument. Typical subtexts in online conversation are: is this good or bad? What’s wrong with it? But until and unless healthy conversational norms are formed, argument and judgement are mostly useless status-seeking by participants. Much better is a “Yes, and” culture.

Three books or papers which should be better known:

1. Elinor Ostrom’s book Governing the Commons.  Ostrom dismantles the market / government dichotomy, sketching out ways common pool resources (and, to some extent, public goods) can be provided using non-market, non-government solutions.

2. Alex Tabarrok’s paper introducing dominant assurance contracts. Cryptocurrencies have huge potential as a way of creating entirely new types of market, using ideas like this. This potential is mostly unrealized to date.

3. Bret Victor on Media for Thinking the Unthinkable.

Blog posts don’t really get going until about 5,000 words in. Here are three favourites of mine:

1. Thought as a Technology, on how imaginative designers invent fundamentally new modes of thought.

2. If correlation doesn’t imply causation, then what does?

3. Using Artificial Intelligence to Augment Human Intelligence (with Shan Carter).

Despite the fact I’m well short of 5,000 words, I’ll stop here.

You can follow Michael on Twitter here.

Will the proliferation of affordable AI decimate the middle class?

Here is how I think about these issues. The Artificial in AI can sometimes mislead so let’s start by getting rid of the A and asking instead whether more NI, Natural Intelligence, will decimate the middle class. For example, will increasing education in China decimate the American middle class? I don’t think so.

As I said in my TED talk, the brainpower of China and India in the 20th century was essentially “offline”. Instead of contributing to the world technological frontier the people of China and India were just barely feeding themselves. China and India are now coming online and I see the increase in natural intelligence as one of the most hopeful facts for the future. It’s been estimated that a reduction in cancer mortality of just 10 percent would be worth $5 trillion to U.S. citizens (and even more taking into account the rest of the world). A reduction in cancer mortality is more likely to happen with a well-educated China than with a poorly educated China. So we have a huge amount to gain by greater NI.

In the case of low-skill labor the rise of China has hurt some US low-skill workers (although US workers as a whole are almost certainly better off due to lower prices). The US has historically had an abundance of highly-skilled labor and with greater education around the world we have less of a competitive advantage. In the case of high-skill labor, however, I think the opportunities for gains are much greater than with competition for low-skill labor. Ideas are what drives growth and ideas are non-rivalrous, they quickly spread around the world. The more idea creators the better for everyone. At the world level, for example, the standard of living and the growth rate of world GDP have both gotten larger as population has increased.

Greater foreign intelligence and wealth could be a threat if intelligence turns from production to destruction (this is also a potential problem with AI). We probably can’t keep China poor, even if we tried, and any attempt to try to do so would likely backfire in the worst possible way. Thus, if we want to keep high-skill Chinese workers working on medical rather than military breakthroughs, we must preserve a peaceful world of trade. Indeed, peace and trade become ever more important the richer the world gets.

Now let’s turn from NI to AI. For the foreseeable future I see AI as being very similar to additional NI. Smart people in China aren’t perfect substitutes for smart people in the United States and there are also plenty of opportunities for complementarity. Similarly AI is not a perfect substitute for NI and there are plenty of opportunities for complementarity. An AI that drives your car, for example, complements your NI because it leaves more time for more productive tasks.

(What happens when AI does become a perfect substitute for NI? We could easily be 100 years or more from that scenario but my foresighted colleague, Robin Hanson, has a new book The Age of Em that discusses the implications of uploads, human intelligence copied into software—Hanson’s book is the most complete and serious scenario analysis of the implications of a new technology ever written but most of us won’t live long enough to know whether he is right although Robin might.)

Thus, the analysis of AI and NI is similar except for one important fact. As Chinese workers become better educated a significant share of the gains will go to Chinese workers (although by no means all).  AI, however, is produced by capital. But in our world capital isn’t scarce. The world is awash in capital and computing power is getting ever-cheaper. AI isn’t like an oil field owned by a handful of people. AI will be cheap and ownership will be widespread. Just look at your cellphone—it’s faster and more powerful than a multi-million dollar Cray-2 supercomputer of 1990. Moreover, in 1990 there were only a handful of Cray-2s and today there are billions of cell-phone super-computers including hundreds of millions and soon billions in poor countries. The gains from AI, therefore, will flow not to capital but to consumers. So if anything the gains from more AI are even larger than the gains from more NI.

From my answer on Quora.

Sunday assorted links

1. Where did the genius of the Polgar sisters come from?

2. Oxford University philosopher Nick Bostrom says the discovery of fossilized complex life on another world “would be by far the worst news ever printed on a newspaper cover.”  On Robin Hanson’s “great filter” theory.

3. “Journalist who reported Minnesota county was ‘worst place to live’ is moving there.”  And ostensibly ordinary Pyongyang.

4. Sweden is growing at 4.5% a year.

5. Professional bridge has a cheating problem.

6. Which college majors benefit most from law school?  The paper is here.

Tuesday assorted links

1. How is development economics taught in developing nations?

2. Robin Hanson reviews Garett Jones.  And cities as harems?

3. Lego’s anti-Lego slippers (markets in everything there is no great stagnation).

4. Walter Frick: are successful CEOs just lucky?

5. New Yorker profile of Nick Bostrom.  And Cass Sunstein to write Star Wars book.

6. “While participants assessed parts of the relationship between Christian and Anastasia as exciting and romantic, they consistently indicated an unappealing lack of health in the relationship…

7. Lots of data on NYC Uber.

The twenty greatest English-language novels

A few of you wrote in and asked me to match this Guardian list of the top one hundred English-language novels of all time.  (It is notable how many second-rate English novels made that list, and how few second-rate American ones did…)  Well, one hundred is too many but here is twenty, in no particular order:

James Joyce, Ulysses

Jonathan Swift, Gulliver’s Travels

Herman Melville, Moby Dick

Charles Dickens, Bleak House

Wuthering Heights

William Faulkner, Light in August, Absalom, Absalom, As I Lay Dying, The Sound and the Fury

Huck Finn

Joseph Conrad, Nostromo

Virginia Woolf, To the Lighthouse, The Waves, Mrs. Dalloway

Nabokov, Pale Fire

Henry James, The Golden Bowl

Thomas Hardy, Jude the Obscure

J.R.R. Tolkien, Lord of the Rings

Lewis Carroll, Alice in Wonderland

Sterne, Huxley, Lawrence, Beckett, and Wharton are all knocking on the door and probably would have rounded out a top twenty-five.  Scott and Trollope too, more Hardy.  I consider the omission of Austen to be my flaw, not hers, but I just don’t love them.

You’ll note I made no attempt to be “balanced.”  I gladly would have awarded all twenty spots to the same author, had such a choice been justified.  There is also no attempt at racial, ethnic, gender, or geographic balance, none whatsoever.  I simply picked what I think are the best books.

And if you think there are some obvious omissions, they probably are intentional.  There are plenty of fine books, but no I don’t put 1984 in the top twenty, and while America has many very good novels from the latter part of the twentieth century, only a few (V?)  would receive my serious consideration for a top thirty list or even top forty list.  Not many are better than Ford Madox Ford’s The Good Soldier, or for that matter John Galsworthy.