From the monthly archives:

November 2006

Reviewing the Stern Review

by John Q on November 21, 2006

The release of the Stern review on the economics of climate change has had a huge impact on the climate change debate in Australia. There had already been signs of movement, but the government was still adamant in rejecting both the Kyoto protocol and any form of emissions trading. And, although the offical position did not dispute the science of climate change, many of the government’s supporters in the media, and even some ministers, were pushing the denialist line.

That was only a few weeks ago. Now the Australian government has endorsed emissions trading (in principle at least) and is calling for a ‘new Kyoto’. Ratifying the old Kyoto is still a step too far for a government that has never disagreed with George Bush on anything, but it’s hard to see how long this position can last.

Given the impact of the Stern review, it’s important to see if it stands up to scrutiny, and I’ve done a series of posts on parts of the report at my blog. My main conclusions:

(i) Stern’s estimates of the cost of stabilising CO2 levels (1 per cent of GDP by 2050) are optimistic, but in the right ballpark
(ii) Stern’s treatment of discounting is correct (More to come on this, I hope)
(iii) Stern underestimates the costs of Business As Usual, particularly in relation to environmental damage
(iv) Headline reporting of Stern overstates the risks of worst-case outcomes in the long tail, but critics are wrong to suggest that low-probability extreme outcomes should be ignored.

Overall, my conclusion is that the Stern review gets the basic economics and the policy recommendation right, even if the presentation is inevitably political.

geek.

by Eszter Hargittai on November 21, 2006

GOOGLEYI had lunch at the Googleplex yesterday and as a result got to add several geeky license plates to my photo collection. I wasn’t even trying hard to look for these, I was just glancing at the plates I passed walking to and from my car.

In unrelated geekiness, if you prefer to unleash your inner geek with the help of a bit more text then I recommend the quotes on this page. A couple of my favorites:

There are only two kinds of programming languages: those people always bitch about and those nobody uses. (Bjarne Stroustrup)

[The BLINK tag in HTML] was a joke, okay? If we thought it would actually be used, we wouldn’t have written it! (Mark Andreessen)

If none of that made sense then you could go watch some Jay Leno Headlines where it is by design that many of the featured items don’t make sense.

Lieven on neo-cons

by Henry Farrell on November 20, 2006

There’s lots that I don’t agree with in Anatol Lieven’s reformulation of realism, but this quote from his LRB “review”:http://www.lrb.co.uk/v28/n22/liev01_.html of books on the Cold War (behind the subscriber wall) really has the number of the “more rubble less trouble mob”:https://crookedtimber.org/2006/11/06/compare-and-contrast-2/.

One important aspect of Westad’s book is the complex connection he makes between the US and Soviet modernising projects and racism. While both regimes insisted on their right to dictate values and solutions to the benighted peoples of the Third World, both also claimed that those peoples were capable of adopting them, doing so rapidly, and thereby joining the ‘socialist community’ or the ‘free world’. But because, in classic missionary style, both sides saw their truths as self-evident, their programmes as beneficial, and their own benevolence as beyond question, they often had no rational explanation to offer when their projects failed and their clients turned against them. In these cases, there was often an astonishingly rapid swing towards racist explanations. Currently, the neo-cons in America alternate between arguing that all Arab societies are capable of making rapid progress towards democracy (and that anyone who denies this is racist) and asserting that ‘Arabs understand only force.’

Authors I’ve given up on

by Henry Farrell on November 19, 2006

Jim Henley “passed on”:http://highclearing.com/index.php/archives/2006/10/14/5537 one of those internets memes to me a few weeks ago which I’m finally responding to – name three authors whom you’ve given up on, and say why. Here goes …
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Fantasy Congress

by Eszter Hargittai on November 18, 2006

Does anyone around here play Fantasy Congress? I’d heard about it before, but now that I was invited to join a league, I started looking into it in more depth.

As in other fantasy sports, you – the Citizen – draft a team of real-life legislators from the U.S. Congress and score points for your team’s successes.

However, as one commentator aptly notes: “[I]t’s lifelike: you win by getting bills passed, not by passing good bills.”

If you only care about winning the game, sure, you can compile a team of senators and represenatives who have an active record. But do you really want to be sitting around hoping that some real-life bill that makes your stomach turn is successful just so you can score some points in FC?

I can see the appeal to some extent, but overall I am not convinced the system is refined enough at this point to get me sufficiently enthusiastic. And while my first reaction was that at least it has educational value by teaching people about the legislative process, now I’m thinking that since it is most likely to appeal to folks who already know much about politics, it’s not clear that it will really spread the word far and wide about how the system works.

That said, I don’t have much experience with fantasy sports so I may be missing some important factors. Moreover, I do think the idea is interesting and certainly impressive that some college students thought it up and managed to execute it. And to be fair, it sounds like its creators – four undergraduate students at Claremont McKenna – are working on refining the system.

A photo a day

by Eszter Hargittai on November 17, 2006

A mosaic of some of my Project 365 imagesThree weeks ago I started a project: take at least one photo a day and post these online. Of course, anyone who’s been following my various posts about Flickr knows that this is not exactly a hardship. Nonetheless, it’s interesting to make a conscious effort every day to stop for a moment and notice something in my surroundings worthy of photography for one reason or another. Part of the point is to have a visual reminder of the various things I’m up to during the span of a year. It’s called Project 365 and I got the idea from Photojojo.

I let my contacts in Flickr know about this and several have joined in on the undertaking. I set up a Flickr Group where everyone can post their additions. (It does have some rules though so don’t just start dumping photos into the pool.) Some of us are also using tags that allow an easy look at how any one day is represented by different people.

Needless to say this is definitely in the realm of personal diary blogging, which is not something I had engaged in much before. But it’s fun with photos. Intrigued? Join us. Grab a free Flickr account or just post to your un-Flickred blog if you’re so inclined. Let me know, I have a Project 365 section on my personal blog‘s sidebar and would be happy to expand it. It is not a requirement to post a photo each day, that can be done in clusters of a few. The requirement is to take at least one photo each day and before midnight strikes, decide which photo represents something about the day.

Ruuuule the Western Sea

by John Holbo on November 17, 2006

In response to my complaints about Trevino, Hilzoy went and procured an actual historian to comment on the Phillipines Insurrection and – generally – on the advantages and disadvantages of such things for national life. I take the key sentence to be:

Once the indigenous resistance was stronger – more politically conscious, better armed and trained – this unspoken calculus no longer applied. Instead, the "home field advantage" came back into play. No longer could small numbers of well-armed foreigners dominate much larger numbers of "natives" on their home soil, as they had been able to do during the 19th century.

I have nothing to add, except that Lemuel Pitkin – I loved A Cool Million, too – requests that I tell you what comics to read.

I’ll start by completing my Green Lantern Geopolitics thoughts. (See also here.) It seems to me that what Matthew has forgotten to mention is that the Lantern in question is obviously Guy Gardner. We missed Guy Gardner appreciation week at Dave’s Long Box – just keep scrolling down below the Stiltman stuff – down, down – and election day ‘whose side is your superhero on?’ stuff. He has a nice essence of Guy frame. Before that he did a ‘what is Guy saying?’ caption contest. One of the entries seemed particularly Green Lantern Geopolitics relevant:

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Ferenc Puskás has died

by Chris Bertram on November 17, 2006

Ferenc Puskás, whose Hungarian team thrashed England at Wembley in 1953 with tactics that anticipated “total football”, and who is widely considered to have been one of the great talents of all time, has died. Obits and articles: “Brian Glanville in the Guardian”:http://football.guardian.co.uk/News_Story/0,,1950662,00.html, “Jonathan Wilson in the Guardian”:http://blogs.guardian.co.uk/sport/2006/11/17/best_beckenbauer_platini_zidan.html, “Soccernet”:http://soccernet.espn.go.com/news/story?id=392277&cc=5739, “Football365”:http://www.football365.com/story/0,17033,8750_1694091,00.html, “Simon Barnes in the Times”:http://www.timesonline.co.uk/article/0,,27-2458213,00.html, “Times obituary”:http://www.timesonline.co.uk/article/0,,27-2458262,00.html .

Goodbye, Uncle Miltie

by Kieran Healy on November 16, 2006

“Milton Friedman has died”:http://news.bbc.co.uk/2/hi/business/6156106.stm at the ripe old age of ninety four. Alex Tabarrok at Marginal Revolution “writes a brief appreciation”:http://news.bbc.co.uk/2/hi/business/6156106.stm from the point of view of a fan. As “Harry said”:https://crookedtimber.org/2006/11/10/adam-swifts-political-philosophy-an-beginners-guide-for-students-and-politicians/ around here only the other day, everyone should read “Capitalism and Freedom”:http://www.amazon.com/exec/obidos/ASIN/0226264211/ref=nosim/kieranhealysw-20 at least once.

_Update_: The “Milton Friedman Choir”:http://video.google.com/videoplay?docid=-6407847019713273360&q=milton+friedman sings about corporations, markets and social responsibility. (Hat tip: CB.)

Jonathan Strange auf Deutsch

by Henry Farrell on November 16, 2006

Alex Müller emails to tell me that he’s singlehandedly translated the Susanna Clarke seminar that we ran last year “into German”:http://molochronik.antville.org/stories/1511971/ (as best as I can tell it’s a very nice translation). When you do something under a Creative Commons license, you hope that people are going take it and play with it and do fun things that you can’t do yourself, and it’s wonderful to see it happening. Apparently the China Mieville seminar is next on his list …

Progress versus economic growth

by Chris Bertram on November 16, 2006

Over at Marginal Revolution, Tyler Cowen has “responded”:http://www.marginalrevolution.com/marginalrevolution/2006/11/xxx.html to “my claim”:https://crookedtimber.org/2006/11/13/relativities-local-and-global/ that, once societies have achieved a certain threshold level, continued growth in output doesn’t matter that much (and that inequalities among such societies matter little, certainly when set beside the absolute poverty of the global poor). Tyler writes:

bq. Just as the present appears remarkable from the vantage point of the past, our future may offer comparable advances in benefits. Continued progress might bring greater life expectancies, cures for debilitating diseases, and cognitive enhancements. Millions or billions of people will have much better and longer lives. Many features of modern life might someday seem as backward as we now regard the large number of women who died in childbirth for lack of proper care. Most of all, economic growth limits and mitigates tragedies. It is a simple failure of imagination to believe that human progress has run its course.

I think what is most striking about what Tyler writes here is the way in which he runs together human progress and economic growth, as if they were the same thing. I’ll leave to one side any moralized or perfectionist thoughts about human progress and just notice that there’s a basic distinction to be made between scientific and technological development and economic growth in the sense of increased per capita GDP. Capitalism’s advocates have always had a tendency to equate progress with increased output, but there are other possibilities, chief among them being that output remains constant and people become progressively freed from burdensome toil. Jerry Cohen has some trenchant observations about Max Weber’s enslavement to a Tyler-like view towards the end of his _Karl Marx’s Theory of History_ (p. 321 and thereabouts). If the passage were online, I’d link. But you should all own a copy anyway.

The other thing to note is the way Tyler holds out the carrot of the benefits of medical technology, including “cognitive enhancements”. If scientific progress can come apart from growth in GDP I could just suggest that giving up on growth in one sense doesn’t necessarily require us to forgo such future benefits. (And I could also point to a list of societies that have innovated in medical technology despite not being at the front of economic development: the British invention of MRI scanning in the 1970s being a case in point.) But it is worth noting that the really great advances in longevity (so far) have mainly come from improvements in diet and public health and rather less from hi-tech. Maybe Tyler thinks that all this will change in the future and that we need to incentivize innovators now so that the benefits of “cognitive enhancements” trickle down to ordinary Westerners and then to the global poor. I’m unconvinced.

I think the nurses are stealing my clothes

by Harry on November 15, 2006

A tribute to the wonderful, wonderful Linda Smith, by her friends. Here till Friday.

Worker elves

by Henry Farrell on November 15, 2006

The Communist Manifesto, a la Disney, Flintstones etc.

Via “BoingBoing”:http://www.boingboing.net

Economics and Ideology

by Henry Farrell on November 15, 2006

“Dan Drezner”:http://www.danieldrezner.com/archives/003001.html disagrees with “Chris Hayes”:http://www-news.uchicago.edu/citations/06/061108.sanderson-itt.pdf about whether Econ 101 is a form of right wing indoctrination, saying that his own first micro class waxed rhapsodic about the joys of technocratic intervention, and that he didn’t discover the public choice critique of government until grad school. Now public choice _is_ an unabashedly ideological approach to the world, at least if the co-editor of the flagship journal in the field, Charles Rowley, is to be believed. In his introduction to the Edward Elgar public choice reader, he describes public choice as a “program of scientific endeavor that exposed government failure coupled to a programme of moral philosophy that supported constitutional reform designed to limit government,” and suggests that its opponents are “scholars who had rendered themselves dependent on the subsidies of big government and whose lucrative careers in many instances were linked to advising … agents of the compound republic.”

There is a strong strain in economics more generally that is unabashedly ideological too. Take “this effort”:http://cafehayek.typepad.com/hayek/2006/10/the_society_of_.html to figure out a sort of Nicene creed that would allow ‘real economists’ to profess their faith and thus distinguish themselves from “bluffers”:http://maxspeak.org/mt/archives/002605.html like Kenneth Arrow and Robert Solow. “Real” economists apparently believe that demand curves always slope downwards, even when empirical evidence tells you that they don’t (I’ve always preferred the “Apostles’ Creed”:http://www.thesharpener.net/2006/08/10/mea-culpa/ myself). Now this doesn’t say, _contra_ both some economists and some of their sillier critics, that a commitment to the kinds of models that economists use _necessarily_ makes you predisposed to be right wing (Jack Knight and Jim Johnson, two rational choice lefties, have an interesting forthcoming piece discussing how rhetorical slippage between general equilibrium and partial equilibrium models provides a bogus ideological justification for many pro-market arguments). But it does mean that many people who take economics courses, as they are typically taught in this country, end up coming out of these courses more right wing than they were going in, and perhaps more right wing than the actual theory itself would support, if it were looked at carefully. I think (although I can’t find it using Google, so I may be wrong), that there’s actually empirical evidence supporting the first of these claims – a survey someone did a few years back measuring the political opinions that people had entering graduate programs in economics, and their political opinions after a few semesters of coursework, which found that there was a pronounced and statistically significant shift to the right (if anyone knows where this survey is to be found, feel free to point to it in comments).

Update: I’ve found the survey via Google Scholar, although it isn’t a longitudinal study as I thought it was; the findings are reported in “The Making of an Economist Redux”:http://www.atypon-link.com/AEAP/doi/abs/10.1257/0895330053147976 in the _Journal of Economic Perspectives_.

The large majority of [students surveyed in seven top ranked econ grad programs] (80 percent) felt that their political views did not change in graduate schools, although that changed by year, with 10 percent of first-year students reporting a change in their views, but 32 percent of fourth- and higher-year students reporting a change in their views. In particular, 10 percent of first-year students considered themselves conservative; by the fourth and fifth year, this number had risen to 23 percent. There was also a large drop by year in students who considered themselves radical; that percentage fell from 13 percent of first year students to only 1 percent of fourth-year and higher students.

I recently posted Educational Equality and School Choice (pdf) at the Equality Exchange. The paper is supposed to be an example of the kind of work I called for in my recent article in Education Week, an evaluation of a school reform idea in the light of a theory of values. However, I very explicitly simplify the evaluation so that all I am considering is the likely effects of the wide variety of school choice schemes on educational equality, and not on other values. So it is, at best, a partial analysis. The basic argument is that however you conceive of educational equality, choice is likely to compromise it, but that this is not a sufficient reason to reject choice because the alternative is not a no-choice and egalitarian status quo, but a highly unequal status quo in which choice is realised through the housing market (to an extent which is hard to measure). So we have to look at the varieties of school choice on offer — and I suggest that some of these are likely to be worse, and others better, from the perspective of equality, than the status quo (giving reasons in each case). And, of course, in most English-speaking countries school choice is a fundamental part of the way schooling works, and is not going away any time soon, so I make some suggestions at the end of the paper (which I think I shall beef up a bit in the next version) about how to regulate and reform choice to give it a more egalitarian edge. I’d welcome suggestions for improvements.