
I found this on a good friend's website. Not only it is very true but it could also help teach some basic lessons in set theory, trade offs and the pareto frontier. Enjoy.
Ideas in political economy, quantitative methods, and other musings.
Acaba de salir un libro sobre los beneficios potenciales de una mayor movilidad internacional de la mano de obra (léase migración). La premisa de Lant Pritchett--economista de MIT, profesor de Harvard e investigador del World Bank--es sencilla: en el mundo actual, las ganancias de una mayor movilidad laboral son mucho mayores que las ganancias de disminuir, aun más, las barreras al comercio internacional.
¿Por qué? Imperfectos como lo son, los aranceles y tarifas promedio del mundo ya son relativamente bajos. En cambio, las barreras migratorias siguen siendo gigantescas y socialmente costosas. ¿Evidencia? Los diferenciales en precios de bienes y servicios entre un país rico y uno pobre son de, digamos 30 a 40% (ie, el precio de una ipod o una big mac alrededor del mundo no difiere demasiado). Sin embargo, los diferenciales en salarios entre un pais rico y uno pobre llegan a ser de más del 500%, es decir, de un orden de magnitud superior.
In short, in today's world, being pro-migration is much more pro-poor than being pro-trade.
El libro está disponible en linea aqui:
http://www.cgdev.org/content/publications/detail/10174
This is Avinash Dixit advice on keeping research simple and papers short:
"Over the last two decades the average length of economics papers has increased quite a lot. Advances in word-processing technology have greatly reduced the cost of producing words, but not the cost of producing ideas, with the result economists should expect -- massive substitution.
My ideal is neatly captured in a question Frank Hahn posed to an author. As an editor of the Review of Economic Studies, Hahn asked the author to cut down his paper from 40 pages to its essential core of three pages. When the author wrote a long and indignant letter, Hahn responded in two sentences: "Crick and Watson described the structure of DNA in three pages. Kindly explain why your idea deserves more space."
(...)
I have saved for the end the most important lesson I have learned from my experience, and which I believe has very general validity. Maintain a youthful sense of freedom to choose problems and the directions of work on them. Imagine yourself at twenty-three, not yet labeled or confined to a particular "field," and not yet pressured to produce something quickly for the approaching tenure review. Try to preserve this mental frame in your research, even as your body, and the part of your mind dealing with other matters, continue to age and decay.
Unfortunately, in the US most academics do not regain this freedom until they are thirty-five, by which time it is too late for many of them to be twenty-three. Their research brain is beyond rejuvenation, and it is time for them to leave the research frontier and join the conference circuit or the policy community."
Before
First - Erikson, Panagopoulos, and Wlezien wrote a paper showing that the
Second - survey weighting. Whenever a pollster does a survey, they need to make the poll representative of the voting electorate. (They) essentially guess what the demographic makeup of the electorate is going to be. Usually this is done on historical data and census data, but it's always really hard in primaries because they're not very consistent. So the pollster will first try to get this breakdown in who they actually talk to, and if they can't, they'll then "weight" the survey to simulate the expected breakdown. (
)The pollsters probably saw how weird the electorate was in
MOMENTUM AND SOCIAL LEARNING IN PRESIDENTIAL PRIMARIES
Brian Knight and Nathan Schiff (NBER Working Paper 13637)
http://www.nber.org/papers/w13637
Do outcomes of primaries depend upon the sequencing of states? Do sequential, relative to simultaneous, systems lead to different outcomes in terms of the selection of candidates? In our view, the key distinction is that sequential, relative to simultaneous, elections provide late voters with an opportunity to learn about the desirability of the various candidates from the behavior of early voters. This opportunity for late voters to learn from early voting returns can in turn lead to momentum effects.
We develop and estimate a simple model of voter behavior under sequential elections. In the model, voters are uncertain about candidate quality, and voters in late states attempt to infer private information held by early voters from voting returns in early states. Candidates experience momentum effects when their performance in early states exceeds voter expectations. The magnitude of momentum effects depends upon prior beliefs about the quality of candidates held by voters, expectations about candidate performance, and the degree of variation in state-level preferences. Our empirical application focuses on the 2004 Democratic primary. We find that Kerry benefited substantially from surprising wins in early states and took votes away from Dean, who stumbled in early states after holding strong leads in polling data prior to the primary season.
The estimated model demonstrates that social learning is strongest in early states and that, by the end of the campaign, returns in other states are largely ignored by voters in the latest states. The voting weights implied by the estimated model demonstrate that early voters have up to 20 times the influence of late voters in the selection of candidates, demonstrating a significant departure from the ideal of "one person, one vote."
Finally, we simulate the election under a number of counterfactual primary systems and show that the race would have been much tighter under a simultaneous system and that electoral outcomes are sensitive to the order of voting. While these results are specific to the 2004 primary, we feel that they are informative more generally in the debate over the design of electoral systems in the
| By: | Bernardo S. da Silveira (Department of Economic, New York University) João Manoel Pinho de Mello (Department of Economics, PUC-Rio) |
| URL: | http://d.repec.org/n?u=RePEc:rio:texdis:550&r=pol |
| Despite the "minimal effects" conventional wisdom, the question of whether campaign advertising influence elections outcome remains open. This is paradoxical because in the absence of a causal link from advertising to candidate performance, it is difficult to rationalize the amounts spent on campaigns in general, and on TV advertising in particular. Most studies using US data, however, suffer from omitted variable bias and reverse causality problems caused by the decentralized market-based method of allocating campaign spending and TV advertising. In contrast with received literature, we explore a quasi-natural experiment produced by the Brazilian electoral legislation, and show that TV and radio advertising has a much larger impact on election outcomes than previously found by the literature. In Brazil, by law, campaign advertising is free of charge and allocated among candidates in a centralized manner. Guber natorial elections work in a runoff system. While in the first round, candidates' TV and radio time shares are determined by their coalitions' share of seats in the national parliament, the two most voted candidates split equally TV time if a second round is necessary. Thus, differences in TV and radio advertising time between the first and second rounds are explored as a source of exogenous variation to evaluate the impact of TV advertising on election outcomes. Estimates suggest that a one percentage point increase in TV time causes a 0.241 percentage point increase in votes. Since TV advertising is the most important item in campaign expenditures, this result sheds light on the more general question of the effect of campaign spending on elections outcome. | |
| Keywords: | Campaign Expenditures, Election Outcomes, Endogeneity, Quasi-Natural Experiments |
| JEL: | G12 C22 C53 E44 |
In
Why the Left should learn to love liberalism
By Alberto Alesina and Francesco Giavazzi (5 October 2007)
"Anti-reformists in Europe claim to be protecting
Continental Europe is in the midst of a burning discussion about the pros and cons of market-friendly reforms and greater economic liberalism. We all know what the package contains competition, labour-market flexibility, liberalisation of services, lower taxes, and privatisations.
The traditional debate runs as follows. These reforms are "right wing" policies. They may increase efficiency perhaps even economic growth but they also tend to increase inequality and to be detrimental for the poorest in society. Therefore and here comes the typical "socially compassionate" European argument be very careful moving in that direction. Governments should proceed cautiously and be ready to backtrack at any point.
Much of this reasoning is fundamentally wrong. Labour-market flexibility, deregulation of the service industry, pension reforms and greater competition in university funding is not anti-equality. Such reforms shift financing from taxpayers to the users themselves and, as such, tend to eliminate rents. They tend to increase productivity by basing rewards on merit rather than on being an insider. They tend to open up opportunities for younger workers who are not yet well-connected. Pursuing pro-market reforms does not imply facing a trade-off between efficiency and social justice. In this sense, pro-market policies are "left wing", if that means reducing the economic privileges enjoyed by "insiders".
Read the whole thing.
Warning: this is a bit (actually, more than a bit) of a rant.
One of my pet peeves about political reporting is the fact that some of my journalistic colleagues seem to want to be in another business – namely, theater criticism. Instead of telling us what candidates are actually saying – and whether it’s true or false, sensible or silly – they tell us how it went over, and how they think it affects the horse race. During the 2004 campaign I went through two months’ worth of TV news from the major broadcast and cable networks to see what voters had been told about the Bush and Kerry health care plans; what I found, and wrote about, were several stories on how the plans were playing, but not one story about what was actually in the plans.
There are two big problems with this kind of reporting. The important problem is that it fails to inform the public about what matters. In 2004, very few people had any idea about the very real differences between the candidates on domestic policy. It remains to be seen whether 2008 is any better.
The other problem, which has become very apparent lately, is that this sort of coverage often fails even on its own terms, because the way things look to inside-the-Beltway pundits can be very different from the way they look to real people.
| Riqueza* | Ratio vs. Rockefeller | |
| John D. Rockefeller (1839-1937) | 305.3 | 1.0 |
| Andrew Carnegie (1835-1919) | 281.2 | 1.1 |
| Cornelius Vanderbilt (1794-1877) | 168.4 | 1.8 |
| Richard Mellon (1858-1933) | 82.3 | 3.7 |
| Sam Walton (1918-1992) | 58.6 | 5.2 |
| Henry Ford (1863-1947) | 54.3 | 5.6 |
| Bill Gates (1955- ) | 53 | 5.8 |
| *Cifras en "2006 US billion dollars" |
Fabio Rojas, a Sociologist at orgtheory.net discusses why does sociology have such a bad reputation? I believe these sort of concerns apply, perhaps to different degrees, to the disarray of disciplines we now call social science:
"I am always shocked at our profession’s poor public image. Basically, the educated public barely knows that sociology is actually a real social science, and among those that do, sociology has a fluffy image. (...) This is frustrating because we study important questions and we actually come up with some good answers. So here are some hypotheses about why we have such poor PR:
If I had infinite (ok, just twice more) time I would like to investigate the following:
What is the effect of limiting the number of foreign players in soccer leagues? A cross-country study.
Ideally, this should be a panel with TSCS variation on the legal limits variable.
DepVar: domestic players competitiveness (measured by performance of the country-i team on FIFA tournaments through time)
IndepVars: Number of foreign players allowed or average foreigners enrolled, initial competitiveness, GDP per capita, number of teams in top tier league or number of large stadiums per country... etc.
Logic: if foreign players crowd out domestic talent, local teams should underperform when more foreigners are allowed. But if foreign players raise competitive standards and complement local talent (think of the self-selection and screening effects on the pool of domestic players), then national teams may become more competitive in the presence of foreigners.
Comment: I am not enough of a sports fan to care a lot about this--but whatever the finding, it would give a good economics lesson to all those sports-pundits out there.
Narco-campaigning? Drug money and local democracy in México (or Colombia for that matter)
This also has to be a panel where some localities become "treated" by drug dealers.
DepVar: Turnout or closeness in local elections.
IndepVars: Some sort of index of drug dealing activity at the local level (maybe proxied by drug-related crime?), typical political controls within state and municipality, two-way fixed effects, etc.
Logic: Ok, we know/suspect that drugdealers may want to buyout local authorities. They can do this at the electoral or post-electoral stage. If they give out money to candidates, and we assume some common campaigning technology, you could expect (i) that the extra money leads to higher turnout (compared to state and municipal averages), or (ii) maybe more lopsided elections returns. If the effect is significant it would be indirect evidence of "narco-campaigning". If the effect is not significant, we would still face many possibilities: either narco campaigning is not affecting election outcomes because drug dealers don't care much about the electoral stage (vis a vis post-electoral maneuvering)--or maybe drug dealers giving is indistinguishable from other donors elsewhere, or maybe candidates optimize their spending to just about what they need to win, and pocket the rest, etc. (yes, there are many explanations for any nonsignificant outcome!).
Comment: Getting a good proxy for drug-activity may be hard (but who knows, maybe the AFI got some data at hand). But the real downside is worse: if the narc variable turns out to be positive and significant, your life is in danger.