The new Elena Ferrante novel, up through p.63 no spoilers
It is a thrill to be dragged into her Neapolitan world of class and romantic intrigue and family strife once again, and the book is clearly Ferrante from the get go. Yet I have some doubts. The plot seems more accessible and less complex, and with fewer layers to be unpeeled. It has not yet moved out of “father-daughter cliché land.” Every page is engrossing, but I am still looking for the surprise.
They have been so stingy with advance review copies that there are still no Amazon reviews.
Tuesday assorted links
2. More on the vaccines from Russia and China.
3. “We conclude by analyzing New York’s efforts to address out-of-network billing through binding arbitration between physicians and insurers over out-of-network payments. This intervention reduced out-of-network billing by 12.8 percentage points (88%).” JPE link here.
4. “As if 2020 couldn’t get any weirder, airline pilots landing at Los Angeles International Airport (LAX) on Sunday, August 30th, reported seeing “a guy in a jetpack” flying about 300 yards off their wing while on final approach to the bustling airport. What makes the reports even stranger is that, like a scene out of The Rocketeer, the airliners were descending through 3,000 feet when jetpack guy showed up next to them.” Link here.
5. The public choice of NIMBY: “Historic district designation generates a 12-23% premium for house transactions in Denver.”
*The Rise of the G.I. Army, 1940-1941*
The author is Paul Dickson, and the subtitle is The Forgotten Story of How America Forged a Powerful Army Before Pearl Harbor.
For one thing, I enjoyed the examples of “fast action” in this book. For instance, the U.S. passed draft registration Sept.16, 1940. All men between 21 and 45 are supposed to register, and on a single date, Oct.16. Almost all of them do, including people in mental hospitals. Some stragglers register over the next five days, but the overwhelming majority pull it off on day one, and with very little preexisting infrastructure to draw upon, as draft institutions had been abolished right after the end of WWI.
I had not realized how instrumental George Marshall had been, before Pearl Harbor, in investing in building up America’s officer corps.
The famous movie star, Jimmy Stewart, was drafted but then rejected for being ten pounds too light at 6’3″ and 138 lbs. He then put on ten pounds so he could join the service.
The tales of poor morale, mental illness, and prostitution camps (no antibiotics!) in 1940 are harrowing.
Recommended.
Economists in the Wild: Finkelstein, Oostrom and Ostriker
Here’s the latest Economists in the Wild video featuring Amy Finkelstein, Tamar Oostrom and Abigail Ostriker discussing some of their research (with Einav and Williams) on breast cancer screening. It’s a good video for illustrating how the tools of economics can be used to study a startling wide variety of problems.
Here’s a free assignment to help connect this video to class.
More professor resources.
High school teacher resources.
Further results on the return to talk therapy
Here was my original post, here is an email response from a specialist in the area, channeled by a reader:
The issue is really, really complicated. I have a lot of data on it because I spent time with Mark Goldenson, interviewing a lot of folks segmented by those who chose to seek mental health assistance from a clinician, those who stayed with that treatment versus those who turned away relatively early, and those who experienced severe mental health conditions that make them think that they should have seen a therapist, but ultimately chose not to, for reasons other than economic ones.
And we also talked to clinicians on the other side of that equation.
So between that and knowing the literature reasonably well, I have a lot of perspective on this.
The first thing is that talk therapy is in general not effective for most people. And I know the paper under examination showed that it’s more effective than antidepressants, but in general, most people do not generally stick with talk therapy. They get a benefit at a reasonably low rate for a reasonably short period of time…
Moreover, there’s some pretty strong evidence that talk therapy or at least CBT is becoming less effective over time – the effect sizes in studies & meta-analyses are going down. And there could be reasons for that that aren’t an indictment of the therapeutic model.
So for example, the modern world could just be becoming more stressful and the therapy is less equipped for it… It could be that as the treatment becomes more popular, rather than the more advanced or cutting-edge therapists using it, it’s used by an increasingly broad set of therapists that include low-skilled or ineffective ones.
So there are a lot of reasons that may not have to do with the merits of CBT as an approach, but the data are reasonably convincing on that front.
I think a lot of people are making a reasonably rational choice that, especially if they’re not going to stick with it for a long period of time, even starting therapy is a low-value proposition.
George Ainslie (the psychologist) has this kind of notion of playing a prisoner’s dilemma with your [future] self… let’s just say I want to start an exercise habit… there are a lot of parallels with exercise and talk therapy.
If I knew for a fact that I was going to stop doing it after one month, it actually doesn’t make sense to start at all. Right, because the benefits of accrued will pretty rapidly deteriorate and it’ll be as if I never did it…
People are not just considering, “Should I try talk therapy?”, they’re considering, “Will I do this for a sufficiently long period of time, or especially can I afford it for a long period of time, to where I will get and maintain the benefits from doing it?”
And many people do in fact have misinformation about how quickly they can experience certain types of benefits, and how much work is involved – it’s clear that there’s a lot of work involved, and many people don’t want to do that work.
From an operant conditioning standpoint, the experience of a therapy session is frankly more punishing than it is rewarding (for many people, a lot of the time). Like any negative stimulus, they’re going to engage in behaviors that cause that stimulus to be experienced at a lower rate.
Sometimes the benefits don’t accrue during the session, they accrue afterwards. It takes a lot of work to experience them and [can] involve emotional trauma to even retrieve them.
It’s not consistent with people’s ROI calculation, or what they would like to see in their ROI calculation. Again, it’s really similar to physical exercise – we know physical exercise works. It works better than antidepressants. It accrues all the benefits that this paper Cowen cited discovered in terms of energy and mood and earnings and so on and so forth.
But people still don’t engage in exercise, and in fact I think the rate of physical activity is actually on the decline, in the industrialized world at least.So, it’s more complex than “Does the behavior accrue benefits if you do it consistently?” It’s also not entirely about access because many forms of physical activity are free, and as the paper examines the seeking of talk therapy is not super sensitive to [price].
So it goes beyond the mere cost of the service, although the cost of the services is definitely prohibitive for a large cross-section of people.
How does ketamine or any other substance relate to this?
I think it relates very favorably in that people may actually have the opposite misconception around psychedelic-assisted therapy. They might view regular talk therapy as something where they’re going to have to do this tedious hour a week for months before they get any benefits or they solve any problems in their lives.
[With ketamine] they probably think that they’re going to do one ketamine session, and all of their issues are going to be solved right their PTSD is cured and they no longer experience any symptoms of anxiety, depression, etc… It’s probably a little bit overhyped in the minds of people who have only casually exposed themselves – they’re seeing an article in The New Yorker, or they’re seeing it on a blog, or someone goes on a podcast and talks about an experience. They’re not looking at it with the measured view of someone from the Johns Hopkins team or whatever. So I think that it does work in your favor….
People may overestimate the level of benefit they’re likely to achieve and it seems like the medicine is doing the work, rather than them. Even though I know that that isn’t really the case….
By the way, fun stuff from that research sprint we did with Goldenson – the average person in our cohort (who did ultimately get therapy), put it off for over two years.
It was a pretty wide range – some people sought help after, perhaps, six weeks I think was the shortest. Nobody has a bad day or think they’re experiencing depression or experiencing dysfunction in their work life or their romantic life or whatever it is and goes straight to a therapist…
They also tend to do a fair bit of research – they research different therapeutic methods and kind of choose one that fits their personality or their values, almost more so than efficacy.
And most of the people who ended up with a stable relationship with a provider trial between two and five different folks.
Those words are from Chris York, via MR reader Milan Griffes.
The impact of economic regulation on growth: survey and synthesis
This study provides a survey of research that uses cross-country comparisons to examine how economic regulation affects growth. Studies in the peer-reviewed literature tend to rely on either World Bank or Organisation for Economic Co-operation and Development measures of regulation. Those studies seem to reflect a consensus that entry regulation and anticompetitive product and labor market regulations are generally harmful to growth. The results from this cross-country research, taken in conjunction with economic theory as well as other country-specific studies of economic regulation, support the hypothesis that economic regulation tends to reduce welfare in competitive markets. Given the continued use of certain types of economic regulation, the findings may offer important lessons for policymakers.
That is a new Mercatus working paper by James Broughel and Robert Hahn.
What should I ask Michael Kremer?
I will be having a Conversation with him soon. So what should I ask him?
Here are previous MR posts on Michael Kremer.
Monday assorted links
1. New paper on Covid and immune responses in care homes.
3. Did Michael Polanyi make the first economics film?
4. The dangers of Big Tech and crony capitalism.
5. FAQ on aerosol transmission.
6. Rachel Glennerster update, new and important UK position. And here is a short bit on FCDO.
Uh-oh Mumbai
And here is the research:
The spatial layout of cities is an important feature of urban form, highlighted by urban planners but overlooked by economists. This paper investigates the causal economic implications of city shape in India. I measure cities’ geometric properties over time using satellite imagery and historical maps. I develop an instrument for urban shape based on geographic obstacles encountered by expanding cities. Compact city shape is associated with faster population growth and households display positive willingness to pay for more compact layouts. Transit accessibility is an important channel. Land use regulations can contribute to deteriorating city shape.
Here is the full paper by Mariaflavia Harari. “Transit accessibility” — what a funny phrase to apply to Mumbai traffic! Try some Marathi slang instead. And in case you are not familiar with Mumbai, some of the lower parts have some of the most valuable land.
What I’ve been reading
1. Daniel Halliday and John Thrasher, The Ethics of Capitalism: An Introduction. This book is reasonable, empirical, non-dogmatic, readable, and largely but not uncritically pro-capitalist. It is indeed “an introduction,” and not designed for say yours truly, but we need many more works like this.
2. Ken McNab, And in the End: The Last Days of the Beatlesxxx. I regularly opine that sports and entertainment books — provided you already have familiarity with the topic area — provide better management lessons than do management books. This volume, as I read it, presents the Beatles story as a tale of two sequential founders — first John (who had most of the early excellent songs), and then Paul, the turning point in my view being when Paul commandeered the engineering of “Tomorrow Never Knows,” otherwise very much a John song but in fact Paul did most of the actual work on it. Eventually the first founder rebelled against the ever-more-domineering second founder, and then the Beatles went poof.
3. Martyn Rady, The Habsburgs. Most books about the Habsburgs confuse me, this one confuses me less than those other ones, consider that a recommendation. I learned the most from the section about all of the early ties to what is now part of northern Switzerland.
4. Jeff Selingo, Who Gets In and Why: A Year Inside College Admissions. Most books about college admissions do not confuse me (the reality already is so absurd), but this one informs me, consider that a recommendation. Selingo has done actual extensive research, including a direct pipeline into the processes of several major institutions, and he puts informativeness above moralizing or exaggeration.
5. Richard E. Spear, Caravaggio’s Cardsharps on Trial: Thwaytes v. Sotheby’s. A surprisingly taut and suspenseful treatment of a dispute and then lawsuit over whether a supposed Caravaggio was in fact “real” or not. NB: if they have to ask whether or not it is real, most of the time it ain’t.
6. William C. Summers, Félix d‘Hérelle and the Origins of Molecular Biology. I wanted to read up on bacteriophages, in part as a broader proxy for abandoned lines of scientific inquiry (superseded by antibiotics, and did you recall they play a big role in Sinclair Lewis’s Arrowsmith?), and it seemed this was the right book for that. Short enough and to the point, clear enough for the non-specialist, and it has plenty on the history of science more broadly. It also covers d’Hérelle being invited to Georgia, USSR, to pursue his research, a fascinating episode in his life. For a brief introduction, here is his Wikipedia page.
7. Marieke Lucas Rijneveld, The Discomfort of Evening. A few months ago I started reading this one, figuring it would win a Booker, and indeed it just did. I read up through p.102, and quite liked it, but also figured that a Dutch farm tale of mucky perversion, flapping meats, and a mordant, vibrant nature did not in fact fit into my broader life plan. Indeed it did not. But if you are considering this one, while likely I will not finish it, I still would nudge you slightly in the positive direction. Cumin cheese makes an appearance (ugh).
I have not had a chance to read Adrian Goldworthy’s Philip and Alexander: Kings and Conqueror, but it appears promising.
Steven Ozment, The Age of Reform, 1250-1550: An Intellectual and Religious History of Late Medieval and Reformation Europe is a reprint of a 1980 classic, with an emphasis on the roots of liberalism in European religious thought.
Sunday assorted links
1. Assar Lindbeck has passed away.
2. “Police reforms face defeat as California Democrats block George Floyd-inspired bills.” Police reform for thee, but not for me…people, voting is not enough and not even the major change that is needed!
3. Western interest in studying the Chinese language is declining (The Economist).
4. Long list for the Dezeen architectural project awards, good photos.
Testing Targets and Intensifies Social Distancing on the Infectious
I’ve been pounding on the need for fast, frequent testing but it’s clear from some of the comments to The Beginning of the End that I have failed to convey some fundamental points. A seemingly sophisticated objection is to note that given background prevalence rates even a fairly specific test will result in a high fraction of false positives among those who test positive. (This is the standard Bayesian doctor puzzle.) It’s nice to see people doing the Bayes calculation but some of them are then drawing the wrong conclusion. Let’s spell it out.
Suppose that the numbers are such that 50% of the people who test positive actually are negative. That sounds bad and it’s not great for a diagnostic test but it’s good enough to be a massive help in a pandemic. To see why, just imagine that you could easily identify people who had a 50% chance of being infectious. That’s a very useful piece of information! If just this group were to intensify social distancing for a week or two the pandemic would end quickly.
In essence, testing allows us to target and intensify social distancing on the people who are most likely to be infectious. Suppose that 10 in 1000 people are infectious (a 1% infectious rate) and that all 1000 are doing some social distancing to protect ourselves from the 1%. If we test and 20 people test positive (10 infectious and 10 not) then 980 people can return to their lives and only 20 need to intensify social distancing. The pandemic ends quickly.
We could cut the number quarantining even further by retesting using PCR and that’s good but not necessary. Also note that the 20 who test positive were already social distancing, albeit perhaps less carefully than ideal, so the additional cost is low and intensifying social distancing on the infectious reduces the transmission rate. I have ignored false negatives to focus on a key issue. False negatives will mean some transmission still occurs but that will be picked up by more frequent testing.
The takeaway is that when you are blind, you don’t need 20/20 vision to be much better off.
The rise and fall of the corporate R&D lab
Of course, Bell Labs itself later grew to be one of the marquees of commercial labs—in the late 1960s it employed 15,000 people including 1,200 PhDs, who between them made too many important inventions to list, from the transistor and the photovoltaic cell to the first digitally scrambled voice audio (in 1943) and the first complex number calculator (in 1939). Fourteen of its staff went on to win Nobel Prizes and five to win Turing Awards.
That is from Ben Southwood’s new essay on that topic, on the new and important on-line publication Works in progress.
Four stylized facts about Covid-19
We document four facts about the COVID-19 pandemic worldwide relevant for those studying the impact of non-pharmaceutical interventions (NPIs) on COVID-19 transmission. First: across all countries and U.S. states that we study, the growth rates of daily deaths from COVID-19 fell from a wide range of initially high levels to levels close to zero within 20-30 days after each region experienced 25 cumulative deaths. Second: after this initial period, growth rates of daily deaths have hovered around zero or below everywhere in the world. Third: the cross section standard deviation of growth rates of daily deaths across locations fell very rapidly in the first 10 days of the epidemic and has remained at a relatively low level since then. Fourth: when interpreted through a range of epidemiological models, these first three facts about the growth rate of COVID deaths imply that both the effective reproduction numbers and transmission rates of COVID-19 fell from widely dispersed initial levels and the effective reproduction number has hovered around one after the first 30 days of the epidemic virtually everywhere in the world. We argue that failing to account for these four stylized facts may result in overstating the importance of policy mandated NPIs for shaping the progression of this deadly pandemic.
That is the abstract of a new NBER paper by Andrew Atkeson, Karen Kopecky, and Tao Zha. You will note that when it comes to Covid-19 cases, the superior performance Europe had enjoyed over the United States seems to be evaporating, see here on France and here on Europe more generally.
Forthcoming markets in everything, squirrel nut bar edition
“An Ohio man built a backyard squirrel bar with seven varieties of nuts on tap.” And yes this will be monetized:
Dutko’s favorite part of the bar is its quirky bathroom sign: “Nuts” and “No Nuts.”
The project, which measures about 25 inches wide and 16 inches tall, took him eight hours to design and build.
After posting a video on YouTube showing the build process, Dutko said he was “overwhelmed” with comments and requests to purchase the bar. He immediately applied for a design patent and is now planning to launch a business to sell The Nutty Bar for about $175 – $200.
Here is the YouTube video. Via the excellent Samir Varma.