My Conversation with the excellent Paula Byrne
Here is the audio, video, and transcript. Here is part of the episode summary:
Tyler and Paula discuss Virginia Woolf’s surprising impressions of Hardy, why Wessex has lost a sense of its past, what Jude the Obscure reveals about Hardy’s ideas about marriage, why so many Hardy tragedies come in doubles, the best least-read Hardy novels, why Mary Robinson was the most interesting woman of her day, how Georgian theater shaped Jane Austen’s writing, British fastidiousness, Evelyn Waugh’s hidden warmth, Paula’s strange experience with poison pen letters, how American and British couples are different, the mental health crisis among teenagers, the most underrated Beatles songs, the weirdest thing about living in Arizona, and more.
This was one of the most fun — and funny — CWTs of all time. But those parts are best experienced in context, so I’ll give you an excerpt of something else:
COWEN: Your book on Evelyn Waugh, the phrase pops up, and I quote, “naturally fastidious.” Why can it be said that so many British people are naturally fastidious?
BYRNE: Your questions are so crazy. I love it. Did I say that? [laughs]
COWEN: I think Evelyn Waugh said it, not you. It’s in the book.
BYRNE: Give me the context of that.
COWEN: Oh, I’d have to go back and look. It’s just in my memory.
BYRNE: That’s really funny. It’s a great phrase.
COWEN: We can evaluate the claim on its own terms, right?
BYRNE: Yes, we can.
COWEN: I’m not sure they are anymore. It seems maybe they once were, but the stiff-upper-lip tradition seems weaker with time.
BYRNE: The stiff upper lip. Yes, I think Evelyn Waugh would be appalled with the way England has gone. Naturally fastidious, yes, it’s different to reticent, isn’t it? Fastidious — hard to please, it means, doesn’t it? Naturally hard to please. I think that’s quite true, certainly of Evelyn Waugh because he was naturally fastidious. That literally sums him up in a phrase.
COWEN: If I go to Britain as an American, I very much have the feeling that people derive status from having negative opinions more than positive. That’s quite different from this country. Would you agree with that?
Definitely recommended, one of my favorite episodes in some while. And of course we got around to discussing Paul McCartney and Liverpool…
Another look at the New Jersey drone evidence
Here is the chain of examples, one can assume not all are represented properly, nonetheless I remain stumped.
Thursday assorted links and non-links
1. Slightly salacious betting markets in everything.
3. From my email: “I’m curious, if you have the time to reply, about your personal Straussianism and if you believe scarce context is what makes the world livable, or if its actually a tragedy.”
4. The music of Sid Meier’s Civilization.
5. A partial guide to the New Right.
6. Zvi on o1.
Tetlock on Testing Grand Theories with AI
Testing grand theories of politics (or economics) is difficult because such theories are always contingent on ceteris paribus assumptions but outside of a lab, all else is rarely the same. The great Philip Tetlock has run multi-decade forecasting experiments but these are time and resource consuming. Tetlock, however, now suggests that LLMs could speed the process of testing grand theories like Mearsheimer’s neo-realism theory of politics:
With current or soon to be available technology, we can instruct large language models (LLMs) to reconstruct the perspectives of each school of thought, circa 1990,and then attempt to mimic the conditional forecasts that flow most naturally from each intellectual school. This too would be a multi-step process:
1. Ensuring the LLMs can pass ideological Turing tests and reproduce the assumptions, hypotheses and forecasts linked to each school of thought. For instance, does Mearsheimer see the proposed AI model of his position to be a reasonable approximation? Can it not only reproduce arguments that Mearsheimer explicitly endorsed from 1990-2024 but also reproduce claims that Mearsheimer never made but are in the spirit of his version of neorealism. Exploring views on historical counterfactual claims would be a great place to start because the what-ifs let us tease out the auxiliary assumptions that neo-realists must make to link their assumptions to real-world forecasts. For instance, can the LLMs predict how much neorealists would change their views on the inevitability of Russian expansionism if someone less ruthless than Putin had succeeded Yeltsin? Or if NATO had halted its expansion at the Polish border and invited Russia to become a candidate member of both NATO and the European Union?
2. Once each school of thought is satisfied that the LLMs are fairly characterizing, not caricaturing, their views on recent history(the 1990-2024) period, we can challenge the LLMs to engage in forward-in-time reasoning. Can they reproduce the forecasts for 2025-2050 that each school of thought is generating now? Can they reproduce the rationales, the complex conditional propositions, underlying the forecasts—and do so to the satisfaction of the humans whose viewpoints are being mimicked?
3. The final phase would test whether the LLMs are approaching superhuman intelligence. We can ask the LLMs to synthesize the best forecasts and rationales from the human schools of thought in the 1990-2024 period, and create a coherent ideal-observer framework that fits the facts of the recent past better than any single human school of thought can do but that also simultaneously recognizes the danger of over-fitting the facts (hindsight bias). We can also then challenge these hypothesized-to-be-ideal-observer LLM s to make more accurate forecasts on out-of-sample questions, and craft better rationales, than any human school of thought.
Gender Composition and Group Behavior
Evidence from city councils:
How does gender composition influence individual and group behavior? To study this question empirically, we assembled a new, national sample of United States city council elections and digitized information from the minutes of over 40,000 city-council meetings. We find that replacing a male councilor with a female councilor results in a 25p.p. increase in the share of motions proposed by women. This is despite causing only a 20p.p. increase in the council female share. The discrepancy is driven, in part, by behavioral changes similar to those documented in laboratory-based studies of gender composition. When a lone woman is joined by a female colleague, she participates more actively by proposing more motions. The apparent changes in behavior do not translate into clear differences in spending. The null finding on spending is not driven by strategic voting; however, preference alignment on local policy issues between men and women appears to play an important role. Taken together, our results both highlight the importance of nominal representation for cultivating substantive participation by women in high-stakes decision making bodies; and also provide evidence in support of the external validity of a large body of laboratory-based work on the consequences of group gender composition.
That is from a new NBER working paper by
Health insurance companies are not the main villain
First of all, insurance companies just don’t make that much profit. UnitedHealth Group, the company of which Brian Thompson’s UnitedHealthcare is a subsidiary, is the most valuable private health insurer in the country in terms of market capitalization, and the one with the largest market share. Its net profit margin is just 6.11%…
That’s only about half of the average profit margin of companies in the S&P 500. And other big insurers are even less profitable. Elevance Health, the second-biggest, has a margin of between 2% and 4%. Centene’s margin is usually around 1% to 2%. Cigna Group’s margin is usually around 2% to 3%. And so on. These companies are just making very little profit at all.
And:
In other words, Americans’ much-hated private health insurers are paying a higher percent of the cost of Americans’ health care than the government insurance systems of Sweden and Denmark and the UK are paying. The only reason Americans’ bills are higher is that U.S. health care provision costs so much more in the first place.
And:
In fact, the Kaiser Family Foundation does detailed comparisons between U.S. health care spending and spending in other developed countries. And it has concluded that most of this excess spending comes from providers — from hospitals, pharma companies, doctors, nurses, tech suppliers, and so on…
Recommended, here is the full post.
The New Jersey drone sightings
Here is one short clip. They are almost certainly from humans, but whose humans? These incidents also have some bearing on UAP debates. When the UAPs are from humans, even from an advanced tech program (whether ours or others), it is in fact pretty obvious that “these are a bunch of somebody’s drones.” Update your p’s accordingly. They seem to be tracking some British airbases as well.
Can you trust the mayor of Belleville? A New Jersey state senator agrees.
Wednesday assorted links
1. Semantic search for all CWTs.
2. Job postings for Ph.D economists are down.
4. Krugman’s last NYT column (though he is not retiring more generally he says).
5. Thread on quantum computing. And Scott Aaronson on Google Willow.
Tabarrok on Bail
I appeared on the Bail in the Midwest Podcast (Apple) to talk about crime and bail. Here is one bit:
I’ve talked about capturing these people and recapturing them and that of course is what you see on television. That’s the sexy part of it but actually a lot of what is going on, as you well know, is that the bail bondsmen understand the system much better than the the clients do. So what they’re often doing is helping their clients to navigate the system and to remind them that “you have a court date”. They call them up and send them a text, “don’t forget you have to be at court at this time in this place,” you know these these people are not necessarily putting it on their Google Calendar right? So the bail bondsmen they really perform a social service in helping people to navigate the intricacies of the criminal justice system at a time of high stress.
Spotify: https://open.spotify.com/episode/7dwB1NX43CEqNzBA2crSDp
Podcast Index: https://podcastindex.org/podcast/5314589?episode=30862010733
*A Boy’s Own Story*
By Edmund White, I enjoyed this paragraph from the preface:
In A Boy’s Own Story I touched on all the themes of my youth: the exaggerated consolations of the imagination; the sexy but crushing teenage culture of the 1950s; the importance of Buddhism, books and psychoanalysis to my development; my first contacts with bohemianism, the sole milieu where homosexuality was tolerated; and finally my cult of physical beauty. In recent years politically correct gay critics have taken me to task for my *looksism.” I never respond, but if I were to I’d say “Put the blame on Plato, who originated the seductive if unwholesome idea that physical beauty is a promise of Beauty, indistinguishable from Truth and Goodness.” All artists are responsive to beauty in any form it appears.
How did “looksism” get turned into “lookism“?
Should crypto receive a tax exemption?
Probably not, or so I argue in my latest Bloomberg column. Excerpt:
The most obvious argument against the proposal is simply that uniform taxation is better than selective tax exemptions. If a lower capital gains tax rate is preferable, then the goal should be to make a smaller cut that applies to all assets. Exempting a single kind of asset is likely to lead to abuses. You might think that boosting crypto is important now, but which sector or asset will be selected next for special treatment? It may be one you don’t think deserves it.
And:
Another problem is that tax exemption is probably not the best route to crypto normalization. What crypto assets and institutions require is predictable treatment, and on that score the nomination of Paul Atkins to lead the SEC is a good sign. Is a capital gains tax rate of zero even sustainable? A future Democratic president could raise the rate back to standard levels, or higher yet. The crypto industry would still be whipsawed by politics.
A tax exemption for crypto also would skew the population of crypto investors, and not necessarily in a beneficial fashion. The US economy offers a variety of options for tax-free savings, ranging from 401(k) plans to IRAs to pension funds. These vehicles make the most sense for investors who are liquid enough to put aside some money and lose immediate access to their funds.
It would be unfortunate if crypto became a preferred tax-free savings vehicle for lower-income groups. Crypto prices may well remain volatile in the future, and crypto investments are still more likely to be associated with scams and questionable business practices. This is obviously true even if you, like me, see plenty of legitimate uses for crypto assets and institutions.
And:
Another issue is one of tax arbitrage. If crypto assets truly are not taxed on their capital gains, many other investment vehicles might, over time, be repackaged in crypto form. Rather than holding some equity in a company, why not hold a crypto token backed by that same company? That is hard to do under today’s laws and regulations, but it may well become easier under a Trump administration, which seems committed to the normalization of crypto. That normalization, however beneficial it may eventually prove, should not be allowed to serve as a way to dodge taxes.
“Be careful what you wish for, you might get it…”
Science and religious dogmatism
Today’s leading historians of science have “debunked” the notion that religious dogmatism and science were largely in conflict in Western history: conflict was rare and inconsequential, the relationship between religion and science was constructive overall. This view stands in sharp contrast to that of a group of economists, who are beginning to report empirical evidence suggesting pervasive conflict, either in the present or during various historical settings. Who is right? This article provides quantitative evidence—from the continental level down to the personal one—suggesting that religious dogmatism has been indeed detrimental to science on balance. Beginning with Europe as a whole, it shows that the religious revival associated with the Reformations coincides with scientific deceleration, while the secularization of science during the Enlightenment coincides with scientific re-acceleration. It then discusses how regional- and city-level dynamics further support a causal interpretation running from religious dogmatism to diminished science. Finally, it presents person-level statistical evidence suggesting that—throughout modern Western history, and within a given city and time period—scientists who doubted God and the scriptures have been considerably more productive than those with dogmatic beliefs.
That is from a new paper by Matías Cabello. Of course you can believe those results, and still think Christianity was a necessary institutional background, even if being Christian did not help the individual scientist.
Tuesday assorted links
1. What is Russia losing in Syria?
2. Saloni on five medical breakthroughs from 2024.
3. The U.S. tax system has become more redistributive.
4. Open access book on the socialist calculation debate.
5. El Salvador to scale back Bitcoin plans due to IMF pressure (FT).
6. The new Google quantum chip. “It lends credence to the notion that quantum computation occurs in many parallel universes, in line with the idea that we live in a multiverse…”
The Nobel Prize lectures in economics
Trump City
Donald Trump wants to create Freedom Cities. It’s a good idea. As I wrote in 2008, the Federal Government owns more than half of Oregon, Utah, Nevada, Idaho and Alaska and it owns nearly half of California, Arizona, New Mexico and Wyoming. See the map (PDF) for more [N.B. the vast majority of this land is NOT parks]. Thus, there is plenty of land to build new cities that could be adopted to new technologies such as driverless cars and drones.
Mark Lutter review the history and motivation and has a good suggestion:
Our favorite possibility is Presidio National Park. Though much smaller than Guantanamo Bay or Lowry Range, its location is ideal. San Francisco is the world’s tech capital, despite its many problems. The federal government can help San Francisco unleash its full potential by developing Presidio. With Paris-level density and six-story apartment buildings, a developed Presidio would add 120,000 residents, increasing San Francisco’s population by 15 percent. Further, given the city’s existing talent density, a Presidio featuring a liberalized biotechnology regime would quickly become a world innovation leader in this sector. America deserves a Bay Area that can compete; turning Presidio into a Freedom City could be an important step in that direction.
I would add only one suggestion let’s call this Trump City.