EC101: Links for 19th September, 2019

  1. Are we all Japan now?
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  2. A review of the Jalan comittee report.
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  3. Eric Maskin writes an appreciation of Kenneth Arrow’s ouevre.
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  4. A New Yorker profile of Stephanie Kelton.
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  5. Bookmarked as want to read.
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EC101: Links for 12th September, 2019

Following on from my review of “Launching The Innovation Resistance”, here is a selection of five papers from its bibliography that I enjoyed going over.

  1. “Using a sample of engineered mice that are linked to specific scientific papers (some affected by the NIH agreements and some not), we implement a differences-in-differences estimator to evaluate how the level and type of follow-on research using these mice changes after the NIH-induced increase in openness. We find a significant increase in the level of follow-on research. Moreover, this increase is driven by a substantial increase in the rate of exploration of more diverse research paths. Overall, our findings highlight a neglected cost of IP: reductions in the diversity of experimentation that follows from a single idea.”
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    The title of the paper is much more entertaining: Of Mice and Academics(!)
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  2. Understanding patent thickets (Note: this is a JSTOR link, you may not be able to download the paper. If so, my apologies!)
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  3. The patent paradox revisited (Again, a JSTOR link)
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  4. On roses and patents (I really enjoyed reading about this in the book, and therefore this paper as well)
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  5. On the history of patent law.

EC101: Links for 5th September, 2019

All five links from Marginal Revolution today, in relation to a talk that was held at the Gokhale Institute yesterday, by Murali Neelakantan. This is a topic that I am becoming more interested in, so you might see more posts about this topic.

  1. “It is less commonly recognized by the critics, however, that tougher IP protection may induce more foreign direct investment. Why for instance invest in a country which might subject your patents and copyrights to an undesired form of compulsory licensing?”
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    A typically Cowenian (and by that I mean contrarian) statement, and therefore also likely to be at least somewhat true. MR on Why TPP in IP law is better than you think.
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  2. “It’s hard to believe that the extension of copyright for decades after an author’s death can appreciably increase artistic creation and innovation, thus the public has gained little from copyright extension. What has been lost?”
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    Alex Tabarrok on the tragedy of the anti-commons.
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  3. “Patents are supposed to increase the progress of the useful arts.”
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    Are patents out of control?
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  4. “Walt Disney was long-dead when his copyright to Mickey Mouse was extended. Rumors to the contrary, Walt ain’t coming back no matter how much we incentivize him with a longer copyright.”
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    Alex Tabarrok is rather exasperated with copyright protectionism.
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  5. “How can we increase innovation? I look at patents, prizes, education, immigration, regulation, trade and other levers of innovation policy.”
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    Alex Tabarrok’s blog post on his book, “Launching the Innovation Resistance”

EC101: Links for 29th August, 2019

  1. A simple explainer from the ToI about what RBI’s surplus funds are.
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  2. “Central bank balance sheets can be difficult to grasp and are the subject of much debate. This note makes the case that gross capital is large on RBI’s balance sheet (and further additions to the capital by way of retained earnings do not look necessary) but given the large government debt on the RBI’s books, it is difficult to justify any one-time standalone transfer to the government now.”
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    Ananth Narayan, writing about a year ago (close enough) on the advisability of handing over the funds to the GoI. A nuanced argument, and worth reading.
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  3. “So what you do is:      On the liability side, you reduce the provisions by a certain amount
    On the asset side, you cancel out some government bonds. What the government owes the RBI (as interest and principal) goes away into thin air.

    This gives the government the ability to issue more bonds (since it just saved a truckload on interest costs) and thus use that additional money to do different things.”
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    Deepak Shenoy on the same topic, again from a while back.
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  4. “The balance in the CF is about ₹2.32-lakh crore, which is around 6.4 per cent of the RBI’s total assets.This is reportedly much higher than the 2 per cent average that other BRICS nations (Brazil, Russia, China and South Africa) hold, according to a Bank of America Merrill Lynch report.”
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    The Hindu Business Line on how high the contingency funds are as a percentage of the balance sheet, and how high that number is in comparison to other economies.
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  5. “But there’s a danger, exemplified by Venezuela in the 1980s and 1990s. The central bank, pushed into insolvency by its support of the Latin American government’s industrial policy, leaned too heavily on the power of cheap money-printing to earn profits and repair its balance sheet, and lost control of inflation. Thinning out the Indian central bank’s capital cushion could introduce a similar vulnerability”
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    Andy Mukherjee plays devil’s advocate.

Etc: Links for 16th August, 2019

I have linked to brainpickings before, but this week, I have been reading it almost incessantly. For a variety of reasons, not the least of which is that I have economics textbooks coming out of my ears.

In particular, I have been reading about what Maria Popova has to say about Kurt Vonnegut – and that is a heady combination indeed. And so today’s links are five posts about Vonnegut by Popova (and a bonus sixth one at the end!)

  1. “I think it’s important to live in a nice country rather than a powerful one. Power makes everybody crazy.”
    An excerpt from a letter to his daughter.
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  2. “When I get home from school at about 5:30, I numb my twanging intellect with several belts of Scotch and water ($5.00/fifth at the State Liquor store, the only liquor store in town. There are loads of bars, though.), cook supper, read and listen to jazz (lots of good music on the radio here), slip off to sleep at ten.”
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    A part of his daily routine, as outlined to his wife.
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  3. “I have just demonstrated to you that Shakespeare was as poor a storyteller as any Arapaho.”
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    Hamlet from his viewpoint.
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  4. “Write to please just one person. If you open a window and make love to the world, so to speak, your story will get pneumonia.”
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    This was the second piece that I read this week about Vonnegut, and the advice about how to write better is masterful.
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  5. “Find a subject you care about and which you in your heart feel others should care about. It is this genuine caring, and not your games with language, which will be the most compelling and seductive element in your style.”
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    And this was the first.

And because it is Friday, and because why not, a short poem by Vonnegut.

EC101: Links for 15th August, 2019

Another student of mine, Amruuta, got in touch recently asking about fair valuation and how to think about it. That a) got me thinking about the topic, and b) going down a rabbit hole of articles about the topic. And you have her to thank for today’s lot 🙂

  1. This is (probably) why Amruuta got interested in the topic in the first place.
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  2. Bookmark, rather than read: a short explainer of the differences between the old and the new accounting standards. Note to readers: I am nowhere close to being more than a slightly informed layperson in this area. If anybody knows a more updated source, please let me know.
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  3. How to do valuations in the first place?
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  4. What is fair market value?
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  5. A blog post from Fred Wilson (who has scored a deserved hat-trick, by the way) on hands on valuation exercises. The spreadsheets alone are worth it.

 

Thanks, Amruuta! I learnt a fair bit myself.

EC101: Links for 1st August, 2019

Heard of cantons?

Here’s an interesting question to ask: when one thinks of an organization, how decentralized should it be? Should all decision making flow from the very top, with lower levels of hierarchy being essentially automatons with no autonomy at all? Or should it be the other way around – little fiefdoms that are only nominally a part of a larger whole?

When you are early to check in at a hotel, should the clerk have the ability to decide whether you should be checked in, or should she be inflexible about rules that have been set at the very top?

Can one think of nations as one thinks of organizations? If yes, then what about the ability to tax and spend at the governmental level? Should that rest with the centre, or the states? Today’s five articles help us start to learn about this particular problem, keeping India front and centre:

  1. Here’s the World Bank with it’s view on decentralization in India.
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  2. “The effectiveness of decentralization requires the calibration of the administrative, political and fiscal dimensions. Without political decentralization, participatory decision-making is not possible. Administrative decentralization is necessary to implement political decisions, and an important precondition for fiscal decentralization. Efficiency in the delivery of public services depends on administrative efficiency and accountability. To assess rural local government finance in India, it is useful to compare the system with current thinking on a well-functioning intergovernmental fiscal system.”
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    Again from the World Bank, this time the rather more difficult issue of separating out decentralization and what it means in an administrative sense, and in a fiscal sense.
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  3. The results of a UNDP survey about decentralization in India. I found the slide on challenges about decentralization to be the most thought provoking.
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  4. “Vertical imbalance essentially arises due to the fiscal asymmetry in powers of taxation vested with the different levels of government in relation to their  expenditure responsibilities prescribed by the constitution. Our Federal Structure has three levels of Governments: Central Government, State Governments and the elected Local Bodies. In India the Central government has far greater or larger domain where it may tax e.g., income taxes personal or corporate, taxing consumption of goods and services (CGST), taxing foreign transactions (exports/imports) and capturing natural resources rents, e.g.,
    Spectrum Auction. In contrast, post-GST, the State governments may only tax the consumption of goods and services (SGST) and agricultural incomes, while the local or the third tier has even more limited power to tax which is largely confined to property tax”
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    My apologies for the poor alignment of the text – pasting from a PDF is an act of sorcery that I am very far from mastering. The PDF itself is well worth reading for a student of fiscal federalism in India – Dr. Kelkar on the subject in a working paper.
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  5. And finally, if you have made it this far, a rather long (but fascinating) read from the RBI on the experience of fiscal decentralization from other nations – especially pertinent for India in terms of how to think about this rather thorny issue in the years to come.