RoW: Links for 2nd October, 2019

I thoroughly enjoyed reading each of the five links today, both for how informative they were, but also for how thought provoking they were. A rare treat, this selection.

  1. James Fallows, from 1993 (!) on How The World Works.
    ..
    ..
  2. Adam Mintner on Asia’s haze problem.
    ..
    ..
  3. Tyler Cowen on his recent visit to Karachi.
    ..
    ..
  4. Housing and the middle class in China.
    ..
    ..
  5. I’m cheating a little, but this qualifies as an essay, right?

ROW: Links for 31st July, 2019

  1. “There are things government could do if it were bold enough. How about a series of state-specific visas to foreigners, designed to encourage them to settle in Alaska and other underpopulated states? Alaska’s population could well rise to more than a million, and then the benefits of a good state university system would be more obvious, including for cultural assimilation. In fact, how about a plan to boost the population of Alaska to two or three million people? What would it take to get there?”
    ..
    ..
    Especially read together with the last paragraph, this article is an excellent example of straight thinking – and one wonders where this might apply in India’s case?
    ..
    ..
  2. I’m breaking one of my own rules (but hey, that’s kind of the point of owning this blog), but here’s a short video about a tyre scultpure out of Nigeria.
    ..
    ..
  3. “Nonetheless, reading the testaments of people who’d come through a period of great uncertainty in the late 1920s and early 1930s, with the liberal order seemingly spent, it’s hard not to hear faint echoes in our current plight. As they do now, people then craved simple, emotional answers to complex economic and political problems.”
    ..
    ..
    Learning more about the lives of ordinary people in the past is something I want to do more of. Germany and Germans when they realized the Russians were coming.
    ..
    ..
  4. “The official history of China’s economic reforms is rather more sanitized, but the memoirs of Gu Mu (谷牧), who was vice premier in the 1980s and in charge of foreign trade, do help show how export discipline was applied in the Communist bureaucratic system (see this post for some more interesting tidbits from Gu’s memoir).”
    ..
    ..
    If there is one book that I would want a student of modern Asia to read, it would be Joe Studwell’s “How Asia Works”. This article begins by tipping its hat to that book, and speaks about how China instilled a sense of export discipline.
    ..
    ..
  5. A very long, mostly depressing article on an intellectual purge in Turkey.

Ec101: Links for 4th July, 2019

  1. “I’m more worried about the part where the cost of basic human needs goes up faster than wages do. Even if you’re making twice as much money, if your health care and education and so on cost ten times as much, you’re going to start falling behind. Right now the standard of living isn’t just stagnant, it’s at risk of declining, and a lot of that is student loans and health insurance costs and so on.What’s happening? I don’t know and I find it really scary.”
    ..
    ..
    An article that spanned an entire book (about which more below). But do read this article very, very carefully, especially if you think you really understand microeconomics.
    ..
    ..
  2. “Here, for example, are two figures which did not make the book. The first shows car prices versus car repair prices. The second shows shoe and clothing prices versus shoe repair, tailors, dry cleaners and hair styling. In both cases, the goods price is way down and the service price is up. The Baumol effect offers a unifying account of trends such as this across many different industries. Other theories tend to be ad hoc, false, or unfalsifiable.”
    ..
    ..
    A short excerpt from an article on the book that materialized from the article on Slate Star Codex above (and by the way, you might want to start following Slate Star Codex). I have linked to some of them already, but do scroll through to click on “Other posts in this series” to read them all.
    ..
    ..
  3. “The 23 times increase in the relative price of the string quartet is the driving force of Baumol’s cost disease. The focus on relative prices tells us that the cost disease is misnamed. The cost disease is not a disease but a blessing. To be sure, it would be better if productivity increased in all industries, but that is just to say that more is better. There is nothing negative about productivity growth, even if it is unbalanced.”
    ..
    ..
    An excerpt from an excerpt, admittedly, but still well worth your time, to help you understand why the cost disease isn’t really a disease. It’s all about productivity, and how it grows unevenly (and hey, that’s a good thing!)
    ..
    ..
  4. “State intervention to fix market failures that preclude the emergence of domestic producers in sophisticated industries early on, beyond the initial comparative advantage.
    Export orientation, in contrast to the typical failed industrial policy of the 1960s–1970s, which was mostly import substitution industrialisation (ISI).
    The pursuit of fierce competition both abroad and domestically with strict accountability. ”
    ..
    ..
    You really should be reading How Asia Works by Joe Studwell – everybody should read that book, and multiple times. But that being said, here is the TL;DR version.
    ..
    ..
  5. “There doesn’t seem to be evidence that hiring from outside is better. What evidence does exist seems to be that internal hires get up the learning curve faster, and often don’t need as much of an immediate pay bump. If you persuade someone to leave their current employer by offering more money, what you get is a worker whose top priority is “more money,” rather than on work challenges and career opportunities. (“As the economist Harold Demsetz said when asked by a competing university if he was happy working where he was: `Make me unhappy.’”)”
    ..
    ..
    Tim Taylor on the difficulty of hiring (and retaining) right.