From the monthly archives:

April 2013

I hate to say it, but “Matt Yglesias”:http://www.slate.com/blogs/moneybox/2013/04/22/economics_of_ice_fire_iii_the_market_for_dragons.html has just gone too far this time. If you want to apply simplistic economic arguments to complex social situations, you can’t just wave your hands and suggest that the market for dragons in Westeros and neighboring lands is riddled with Akerlof style information asymmetries and complementarity problems. Instead, you should be waving your hands and arguing that under reasonable assumptions, there isn’t a market for dragons in the first place. The problem isn’t an Akerlof-style one, where there are unobservable variations in quality between dragons. The actual qualities of dragons for plunder and conquest appear to be highly visible – the bigger your dragon, the better they are at toasting enemy armies (the slavers in the TV series know this, and go for the largest of the litter). The problem is that the actual good being bought and sold is not the dragon-as-a-physical-entity, but the _loyalty_ of the dragon-as-a-physical-entity. And this simply isn’t a salable commodity, as best as we can tell from George R.R. Martin’s books and the television series. Daenerys can’t sell a set of affections which appear to be rooted in a quasi-maternal bond, based on the Targareyn bloodline, or some combination of the two. Dragons don’t seem to vary in this quality.

Furthermore, even if George R.R. Martin’s world was one in which Daenerys were somehow able to transfer the loyalties and affections of a dragon to another, this problem would still be insuperable, because dragons are so powerful. The buyer of the dragon’s loyalty could never be sure that Daenerys had actually ‘sold’ it, because loyalty is unobservable. Perhaps Daenerys and the dragon were simply waiting for the right moment to turn on them. And since dragons mature, and fully grown dragons can more or less do whatever the hell they want, Daenerys and the dragon are “essentially too powerful”:http://www.henryfarrell.net/distrust.pdf (PDF) to make bargains that they have a long term incentive to keep. This is a classic form of Thomas Schelling’s credible commitment problem – Schelling remarks in _The Strategy of Conflict_ that the right to be sued is very valuable, because it allows one to make credible commitments. Daenerys, with her dragons, is too powerful over the longer term to be able to make credible commitments.

Hence, the sale of the Unsullied could never occur in equilibrium. The slavers are offering a military asset whose loyalty is unimpeachably transferrable – once the Unsullied have a new master, they obey that master unquestioningly. This is why they are supposed to be so valuable (lots of dubious implications in there of course …). Daenerys is offering a military asset whose loyalty is at best unobservable. Therefore, it can’t be readily sold or exchanged. The exchange should never happen.

Ten Years of Krauthammer Days

by Henry Farrell on April 22, 2013

It’s now been exactly a decade since Charles Krauthammer “told us that”:http://www.aei.org/events/2003/04/22/iraq-what-lies-ahead-event-3/

Hans Blix had five months to find weapons. He found nothing. We’ve had five weeks. Come back to me in five months. If we haven’t found any, we will have a credibility problem.

Charles Krauthammer has not only had that five month period, but twenty-three other five month periods after that first one, for weapons of mass destruction to be found. It’s news to no-one that no weapons have been found. It’s news to no-one that the reason they haven’t been found is because they weren’t there in the first place. It’s news to no-one that Charles Krauthammer is still a columnist at the Washington Post, a syndicated columnist across the US, and a regular talking head on TV. It’s news to no-one that Fred Hiatt, his then-boss and fellow Iraq bullshit artist is still the editor of the Washington Post‘s editorial page. Or that Jackson Diehl, who I heard at the time from Washington Post people was even worse than Hiatt, is still there too.

In short, it’s news to no-one that Iraq War related “credibility problems” aren’t really so much of a problem if you’re Charles Krauthammer. Or Fred Hiatt. Or any of the multitudes of journalists or pundits who flagrantly pimped for this disastrous war and hasn’t even gestured towards publicly admitting that they committed a gross dereliction of duty. I think it’s worth remembering Krauthammer day on this blog as long as Krauthammer and the people around him continue to pollute public discourse. I can’t imagine that it’s particularly efficacious, but the alternative of succumbing to the general amnesia seems even less attractive.

God Bless Benno Schmidt

by Corey Robin on April 21, 2013

I love Benno Schmidt. He’s the chair of the Board of Trustees of CUNY, where I teach, and a former president of Yale. More important, he’s a man who’s spent so much time in the business world that he’s no longer capable of leaving anything to the imagination. So you get from him a refreshingly crude form of honesty that you ordinarily don’t find in academia. Certainly not in university leaders, who are so adept at making themselves misunderstood that you’d think they were trained by apparatchiks in the former Soviet Union. Or Straussians.

Anyway, Benno was interviewed by the New York Post about his plans for CUNY Chancellor Matthew Goldstein, who’ll be retiring at the end of the year.  Long story short: Schmidt wants to make things nice for Goldstein. Even though CUNY’s faculty are badly paid, even though most of the teaching is done by adjuncts who are really badly paid—like, horribly paid (they’re treated even worse)—Benno’s got his eyes on the prize: making sure Matt has a nice sendoff and a sweet retirement.

Our union at Brooklyn College has a blog, which you should be checking out regularly, and they reproduced the Post article.  Here are some highlights: [click to continue…]

Persuasive and convincing

by Eric on April 18, 2013

When a book reviewer or manuscript referee describes an argument as “persuasive” or “convincing” without explaining exactly what it is that has persuaded or convinced, or alternatively what it would take to persuade or convince, I feel I’ve failed to get my money’s worth. I suspect I’m getting a purely subjective assessment dressed up in fancy language, and I’ve long had a hunch it’s been increasing in use, at least in my discipline.1

But inasmuch as I had only a hunch that irritatingly subjective language was increasingly used, I knew I was being terribly inconsistent, which troubled me. So at last I went to the data.

I searched JSTOR for instances of “persuasive” and “convincing” and their opposites by year in reviews published in the American Historical Review between 1958 and 2007. To weight the occurrences, I also searched AHR reviews by year for instances of the word “that,” reckoning this was a pretty neutral word to look for. I divided the former by the latter to get a sense of the frequency of subjective language in AHR book reviews. Below is the result, which I hope is more persuasive than my hunch.

The language of “persuasive” is on the increase. Unless I’ve made an Excel error.

1I also have a terrible prescriptivist annoyance over “persuaded … that” and “convinced … of” but we won’t get into it.

I’ve recently moved from Edinburgh to Bournemouth for a couple of months.Bournemouth is a bit tattier than I’d expected. I reckon 25% of the shop fronts nearby are vacant and the three hair salons I walk past each morning never seem to have more than one customer at a time. But the summer crowds aren’t yet here, and we have the gloriously long beach front to run and cycle along. And there’s always the breath-takingly odd New Forest national park just down the road. It’s like taking a trip back to childhood to round a New Forest corner at fifteen miles an hour and come face to face with a winter-coated donkey. Make the mistake of stopping the car and he’ll edge cheekily up to the window, baring his teeth to beg a free snack.

Bournemouth has a great system of public gyms, and as I’m on a short hiatus from paid employment (using the unexpected gift of 12 free weeks to write) I’ve discovered the wonder of daytime exercise classes. There is something utterly joyous about being at least ten years below the median age of a spinning session, and constantly dialing the bike down to keep up.

But being out of the army-wife bubble is hard. I won’t be going to two or three coffee mornings, then hosting my own and, hey presto, have met most of my local friends already. Last week, the only in-person conversation I had that wasn’t ‘here’s your change’ and ‘thanks very much’ was a rapidly-spinning-into-enthusiastically-shared-interests chat about steampunk with a guy in the Espresso Kitchen café. (I was re-reading Felix Gilman’s The Rise of Ransom City, and scribbling notes for the upcoming CT seminar on same.) Espresso Guy and I got to wondering if there are other kindred spirits about, and whether they might like to meet up for some rather excellent coffee in The Triangle in Bournemouth.

So, are there any CT readers on the south coast who would like to meet up at Espresso Kitchen at some point over the next week or so? Purely social agenda in mind, for chats about politics, books, and how nice it is that the People’s Republic of Tory have finally stopped broadcasting Thatcherite hagiography eight hours a day. The café can open late or serve food, and they’re open to hosting readings, book clubs, or just a few like-minded souls having a natter.

Children, and Chances

by Harry on April 18, 2013

The Boston Review symposium I pointed to last year on James Heckman’s “Promoting Social Mobility” is now out in book form as Giving Kids a Fair Chance. Its all still on the web, at least right now, but the book is cute and inexpensive. I’m curious what other people’s experience is, but I find that when I assign a book in class it gets read by more students, and more carefully, than if I assign something from the web; so I am planning to use it alongside Unequal Childhoods with my freshman class in the fall.

Schools, and Children

by Harry on April 18, 2013

There’s a very good piece by Jal Mehta in the Times last Sunday, reflecting on A Nation at Risk. He criticizes not teachers, but the profession of teaching:

Teaching requires a professional model, like we have in medicine, law, engineering, accounting, architecture and many other fields. In these professions, consistency of quality is created less by holding individual practitioners accountable and more by building a body of knowledge, carefully training people in that knowledge, requiring them to show expertise before they become licensed, and then using their professions’ standards to guide their work.

By these criteria, American education is a failed profession. There is no widely agreed-upon knowledge base, training is brief or nonexistent, the criteria for passing licensing exams are much lower than in other fields, and there is little continuous professional guidance. It is not surprising, then, that researchers find wide variation in teaching skills across classrooms; in the absence of a system devoted to developing consistent expertise, we have teachers essentially winging it as they go along, with predictably uneven results.

I’m very uneasy with his subsequent comparisons with countries that do better, though — Singapore, Japan, South Korea, Finland, Canada — which lack large swathes of relative poverty and, in a couple of cases authoritarian cultures. Its not as though these countries have developed technologies for teaching the kinds of student that American schools educate. But he makes an interesting point about why we know so little, and so little of what we do know is usable:

Anthony S. Bryk, president of the Carnegie Foundation for the Advancement of Teaching, has estimated that other fields spend 5 percent to 15 percent of their budgets on research and development, while in education, it is around 0.25 percent. Education-school researchers publish for fellow academics; teachers develop practical knowledge but do not evaluate or share it; commercial curriculum designers make what districts and states will buy, with little regard for quality.

Anyway, there’s lots of good stuff, so read the whole thing.

Bitcoin: the perfect bubble

by John Q on April 17, 2013

Over at the National Interest, I have a piece arguing that Bitcoin is a more perfect example of a bubble, and therefore a more perfect refutation of the Efficient Markets Hypothesis, than anything seen previously. Key quote

It beats the classic historical example, produced during the 18th century South Sea Bubble of “a company for carrying out an undertaking of great advantage, but nobody to know what it is.” After all, the promoter of this enterprise might, in principle, have had a genuine secret plan. Bitcoin also outmatches Ponzi schemes, which rely on the claim that the issuer is undertaking some kind of financial arbitrage (the original Ponzi scheme was supposed to involve postal orders). The closest parallel is the fictitious dotcom company imagined in Garry Trudeau’s Doonesbury, whose only product was its own stock.

Today Jim Rickards (author of Currency Wars) says,

Last week I had x ounces of #Gold. Today I have x ounces. So value is unchanged. Constant at x ounces. Dollar is volatile though. #ThinkOz

I know it’s a failing in me, but it is hard not to ponder whether this is charlatanism or delusion. As John Maynard Keynes says in the first sentence of his Tract on Monetary Reform, “Money is only important for what it will procure.” With the stubborn volatility of the dollar, Rickards’s ounces procure rather less than they recently did.

The exhortation #ThinkOz is of course wonderful. I think now of hashtags past…

Last week I had x bulbs of #Tulips. Today I have x bulbs. So value is unchanged. Constant at x bulbs. Florin is volatile though. #ThinkBulbs

Money is a medium of exchange and a store of value, they say.

New Tools for Reproducible Research

by Kieran Healy on April 17, 2013

Clippy's Revenge

You can see this point made in somewhat more detail here.

Du kan gå nu.

by Ingrid Robeyns on April 15, 2013

The celebrated Swedish writer Jonas Hassen Khemiri has written a powerful open letter to the Minister of Justice Beatrice Ask (original in Swedish, English translation by Rachel Willson-Broyles). Following an interview in which Ask allegedly said that what people claimed to be racial profiling was merely a matter of “personal experience”, Hassen Khemiri gave his account of how it is to grow up in Sweden in a skin that’s darker than pale white, and with black hair. And what the new law that is leading to this racial profiling does to (some) people, including some Swedish citizens.

This is powerful stuff. Do read it.

“Du kan gÃ¥ nu.” Without apologies.

Fraktur-ed F(airy) Tales

by John Holbo on April 15, 2013

Yay, I found my lost copy of The Lost Art of Heinrich Kley, volume 1. And my first post got such a good response – one comment, and counting! – that I had to do a follow-up.

Here is the cover of my copy of Der Herr der Luft [Master of the Air], a 1914 anthology of ‘tales of fliers and airtravellerstories’ [Luftfahrergeschichten].

luftherr

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It’s illustrated by Kley, and you can find the various plates in Lost Art, vol. 1. But for some reason they left out the cover illustration. (Or you can download the book from the Internet Archive. But, again, the cover image is omitted.)

Why do I like the cover so much?

It is, I believe, the first occurrence of a phenomenon that would become tragi-comically common, in the decades to come: a fantasy or science fiction book – especially an anthology – with a cover that promises some way cool [am oberaffengeilsten] story that isn’t actually in the book. Usually the book is ok, of course. But there is a special, bitter-sweet feeling in the soul of a 12-year old boy (mostly boys, but I by no means hereby deny the existence of female nerds) when you realize you aren’t going to get to read that awesome story about the naked airdude (probably he is wearing a tarzan loincloth) and his friend, the fierce flying fish dude. You will just have to wait until Mike Mignola invents Abe Sapien to read about anyone who looks half that good. (And even Abe can’t fly.)

Here’s the table of contents for the volume.

Der Kondor. Adalbert Stifter
Der Türmer Palingenius. Karl Hans Strobl
Hans Pfalls Mondfahrt. Edgar Allan Poe [trans. “The Unparalleled Adventure of One Hans Pfall”]
Der Unheimliche Gast. Jules Verne [transl. “Un drame dans les airs”]
Luftpilot Jacquelin. Otto Rung
Die Geliebte. Karl Vollmöller
Geflügelte Taten. Hermann Heijermans
Die Reife um die Erde in vierundzwanzig Stunden. Maurice Renard
Das Flugtreffen von Ardea. Gabriele d’Unnunzio
Die Melodie der Sphären. Jage von Rohl
Das Lebendige Mastodon. Paul Scheerbart
Der Ozeanflug. Leonhard Ubelt
Der Flieger. Wilhelm Schmidtbonn
Die Luftschlacht am Niagara. H. G. Wells
Der erste Mensch. Alfred Richard Meyer

Now, I have a confession to make. I actually haven’t read it. Much of it, anyway. The blackletter type stabs my eyes, and my German is weak after years of disuse. But I’m reasonably sure there’s no flying fish man to be found, because fish guys are just one of Kley’s go-to motifs. He likes ’em. He likes ’em in Victorian bathing outfits (fishman and mildly nsfw lady under the fold.) [click to continue…]

In November 2004, 50.7% of the American population voted for George W. Bush; 48.3% voted for John Kerry.

The headline in the New York Times read: “After a Tense Night, Bush Spends the Day Basking in Victory.”

The piece began as follows:

After a long night of tension that gave way to a morning of jubilation, President Bush claimed his victory on Wednesday afternoon, praising Senator John Kerry for waging a spirited campaign and pledging to reach out to his opponent’s supporters in an effort to heal the bitter partisan divide.

“America has spoken, and I’m humbled by the trust and the confidence of my fellow citizens,” Mr. Bush told a victory party that was reconstituted 10 hours after it broke up inconclusively in the predawn hours. “With that trust comes a duty to serve all Americans, and I will do my best to fulfill that duty every day as your president.”

Flanked by his wife, Laura, and their daughters, Barbara and Jenna, and Vice President Dick Cheney and his family, Mr. Bush stood smiling and relaxed on a stage at the Ronald Reagan Building and International Trade Center to thank the campaign team that helped him to a decisive victory, outline his agenda and, 78 days before his second inauguration, speak somewhat wistfully of eventually returning home to Texas.

The Times “News Analysis” read as follows:

 

It was not a landslide, or a re-alignment, or even a seismic shock. But it was decisive, and it is impossible to read President Bush’s re-election with larger Republican majorities in both houses of Congress as anything other than the clearest confirmation yet that this is a center-right country – divided yes, but with an undisputed majority united behind his leadership.

Fast forward to 2013. Tonight, 50.6% of the Venezuelan population voted for Chavez’s successor Nicolas Maduro; 49.1% voted for his opponent Henrique Capriles.

The Times headline this time: “Maduro Narrowly Wins Venezuelan Presidency.”

And here’s how the article begins:

Nicolás Maduro, the acting president and handpicked political heir to Hugo Chávez, narrowly won election to serve the remainder of Mr. Chávez’s six-year term as president of Venezuela, officials said late Sunday. He defeated Henrique Capriles Radonski, a state governor who ran strongly against Mr. Chávez in October.

Election authorities said that with more than 99 percent of the vote counted, Mr. Maduro had 50.6 percent to Mr. Capriles’s 49.1 percent. The turnout, while strong, appeared to be somewhat below the record levels seen in October, a sign that Mr. Maduro may not enjoy the same depth of passionate popular support that Mr. Chávez did.

Update (1 am)

Nathan Tankus just pointed out on Twitter another point of comparison I missed: “I love the focus on ‘hand picked successor’. Pretty sure ‘son of former president’ sounds more nepotistic.” Nathan then added that the phrase was in fact “hand picked political heir,” which makes the comparison even starker!

[My reflections on Britain since the Seventies](https://crookedtimber.org/2013/04/10/britain-since-the-seventies-impressionistic-thoughts/) the other day partly depended on a narrative about social mobility that has become part of the political culture, repeated by the likes of Tony Blair and Gordon Brown and recycled by journalists and commentators. In brief: it is the conventional wisdom. That story is basically that Britain enjoyed a lot of social mobility between the Second World War and the 1970s, but that this has closed down since. It is an orthodoxy that can, and has, been put in the service of both left and right. The left can claim that neoliberalism results in a less fluid society than the postwar welfare state did; the right can go on about how the left, by abolishing the grammar schools, have locked the talented poor out of the elite. And New Labour, with its mantra of education, education, education, argued that more spending on schools and wider access to higher education could unfreeze the barriers to mobility. (Senior university administrators, hungry for funds, have also been keen to promote the notion that higher education is a social solvent.)
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More on The Org

by Henry Farrell on April 11, 2013

Tim Sullivan responds to my post at _OrgTheory._

bq. The point of the AA story, though, was not that organizations are perfectly efficient but that organizations face tradeoffs, and it can be useful to acknowledge those tradeoffs explicitly and to understand the economic architecture of organizations because it makes the situation of the average employee, manager, executive more comprehensible. In the AA case, they had a terrible website (which reflected plenty of other dysfunction within the company), and yet to do the job that AA aspired to (that is, flying people and stuff all over the world), you have to build a big, complicated organization that does lots of things all at once – managing fuel contracts, negotiating with pilots and flight attendants, setting prices, and so on. And organizing all of this involves a lot of tradeoffs. … Ray and I aren’t suggesting that orgs can’t be full of politics, power plays, bad managers, ridiculous HR departments, and so forth. They clearly are — but you have to accept these realities when you decide that there’s something that you want to do that will be best accomplished as a group of bosses and employees. The trick is not to ignore them or pretend they don’t exist, but to understand how and why they are produced, to recognize that sometimes apparent inefficiencies are the result of being organized, and understand the difference between tradeoffs and the _truly_ ridiculous and pointless aspects of organizational life.

I think that the nub of the disagreement is best summed up in one half-sentence here, where Tim suggests that “you have to accept these realities when you decide that there’s something that you want to do that will be best accomplished as a group of bosses and employees.” The point of the alternative perspective I set out is that there _isn’t_ any moment when a collective ‘you’ of bosses and employees, with a common interest in getting something done, decides this. The actual ‘you’ who makes the decisions is a very specific ‘you’ with a very specific set of interests. It is the ‘you’ who is in charge (or, if you want to get all old-style, the ‘you’ who is a capitalist). There is a literature of course in organizational economics, which talks about ‘team production functions,’ and how teams might rationally, if they wanted to get stuff done and minimize shirking, assign oversight to a hierarchically empowered actor. But in an economy which is not organized around cooperatives, very few private enterprises will originate in this way. Instead, they will originate with decisions by owners of capital, who will empower managers (a group which may, or may not, overlap with the owners of capital) to hire workers. The logic will be different, obviously, in non-profits and the government sector, but less different than you might imagine, as both these sectors become more and more like private enterprise.
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