Tech: Links for 20th August, 2019

Five online resources that are free, and that help you be a better student in today’s set.

  1. An utterly beautiful way to learn statistics. That is not hyperbole.
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  2. If you are a data nerd, you will have already heard of Kaggle. If you aren’t, welcome to the club.
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  3. The magic of Wolfram Alpha. If you aren’t sure about how to start, try the “Surprise Me” link on the home page
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  4. If you are using Google Classroom, the latest update might interest you.
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  5. Try the Socratic app?

EC101: Links for 13th June, 2019

  1. “A September 2018 article from Eater tells us that Miguel Gonzalez delivers directly to 120 New York restaurants. As an avocado supplier, he works with farms in Mexico’s Michoacán state. To maintain consistency and minimize bruising, he monitors truck temperatures and how the boxes are stacked during their 2600 (or so) mile journey.”
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    What happens when you raise the tariff on a commodity? Who do you think will (ultimately) pay? Econ texts give you the answer – this article provides an example.
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  2. “Across the United States, a similar cocktail seems to be keeping inflation at bay: Employers are reluctant to charge more, unsure how consumers will react, and they’ve found an untapped supply of workers. It’s partly great news. More Americans are getting jobs than policymakers once thought possible, and wages and prices aren’t spinning out of control the way history would predict.”
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    Think you know macroeconomics? Short answer: you never really do. The NYT provides an example of a conundrum that is keeping the Federal Reserve up at night: full employment, low inflation. A nice problem to have, right? You’d have thought so…
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  3. “Economists have written about topics that we would now classify under the headings of “microeocnomics” or “macroeconomics” for centuries. But the terms themselves are much more recent, emerging only in the early 1940s. For background, I turn to the entry on “Microeconomics” by Hal R. Varian published in The New Palgrave: A Dictionary of Economics, dating back to the first edition in 1987.”
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    On the etymology of micro and macroeconomics.
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  4. “Belloy’s misfortune stemmed from more than bad luck. He was the victim of unscrupulous traders known simply as operators, who might sell fake elevator receipts, or move prices in their favor by spreading false news. Or they might pull off an especially cunning manipulation known as a corner, in which they would buy future wheat while simultaneously buying all physical wheat.Later, when it came time for the operator to take delivery of his future wheat, the other trader had to first go buy some. But there was none. The operator owned it all. Thus trapped, or cornered, the victim had no choice but to pay whatever price the operator demanded. Cornering was the ruin of many a trader, like our Belloy, to whom the only apparent recourse was to find the nearest saloon and shoot himself in the head.”
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    Rarely are classes in financial economics so very entertaining. A lovely history (maybe apocryphal, who knows) about the early days of the CBOT in Chicago.
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  5. “There is no simple remedy for the curse of knowledge, but let me offer a suggestion. Keep a particular person in mind as you teach. That person should be someone you know well—a parent, a spouse, or a best friend (as long as that person is not an economist). Pretend you are explaining the material to them. Are they getting it, or are they lost? If you know this person well, you may be able to more easily empathize with their learning challenges. You might prevent
    yourself from going overboard.”
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    N. Gregory Mankiw comes up with a short six point guideline about how to teach economics better. It is worth going over this list, irrespective of whether you are learning economics or teaching it. Also, taken a look at Eli5?

Links for 3rd May, 2019

  1. “So in the end what we get for policy to decide is whether the Indian aviation business should comprise large, medium or small oligopolies. If resolved sensibly it yields a solution to the problem of cross-subsidisation: the larger the number of firms, the greater will be the need for intra-firm cross-subsidisation as firms focus on a variant of the Ramsey Rule which says that network firms must maximise revenue instead of profits.This is best achieved via a public monopoly which far from reducing output, raising prices and making excessive profits as monopolies are expected to, can do the opposite just as Air India and Indian Railways do. In short, if we want to avoid a return to public sector transport monopolies, we must decide on the size of the oligopolies in the sector.”
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    A very short article, but an immensely interesting one, talking about airlines, India, monopoly, oligopolies, and regulation and policy in India.
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  2. “All that said, zero is still the best price. I think it’s appropriate for foundations or other funding sources to support a multiplicity of free textbook options. (I’m not looking at you, Bill Gates.) INET has done this with its CORE project, but no one else. I don’t think funding is the whole story, however. Economics needs to regard pedagogy as one of its central missions. This is not only a matter of having more panels about it at the national meetings; there needs to be more disciplinary reward for putting one’s time and energy into the development of strategies and materials for the classroom. This means promotion, prizes and esteem, and it would require a substantial cultural shift. Where to begin? I suspect we have a vicious circle that could well become virtuous. Today we have a bleak landscape of minimal innovation in pedagogy and little institutional recognition for those who do this work. In a world well-populated with innovative experiments in teaching and learning, it would be natural to reward the most successful or even just provocative projects. So again the next step seems to belong to the funders.”
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    A fairly interesting take on textbooks (econ textbooks, to be clear), what they cover, what they should cover, and what the price should be. Meta, but out of necessity.
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  3. “We find that the probability of seeing an outcome within 180 days from the date of admission is less than 5%. However, it picks up once the 180 day deadline is passed. Within 270 days, the chances of case closure are between 10 to 30% depending on the bench and case characteristics (e.g., creditor type). We observe high closure rate just past the 270 day period. Within 360 days of admission, the probability of seeing an outcome is significantly higher (30 to 70%). Quicker outcomes (liquidation or resolution) are observed for resolution proceedings triggered by the debtors themselves. Similarly, proceedings triggered before some benches result in resolutions speedier than those before some others.”
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    On the impact of the IBC on dealing with bankruptcies in India. Visit the link to find a link to a fairly good data-set pertaining to the issue being discussed.
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  4. “So buying shares of an IPO could be rational or irrational depending on your time horizon…and how lucky you are with what happens on the first day of trading.”
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    An interesting analysis on IPO’s and why they tend to be oversubscribed. Fairly well known, I’d say, if you’re a student of finance – but interesting nonetheless.
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  5. “The estimated cost of NYAY is substantial – Rs. 3.6 trillion a year. It would be broadly six times what has been allocated to MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) in the interim budget presented in February 2019. It is also nearly 13% of total central government expenditure for the fiscal year 2020. It is hard to see how such a large incremental spending programme can be funded through cuts in other expenditure items alone, including non-merit subsidies. That will be a very difficult political economy call, given that non-merit subsidies mostly benefit vocal interest groups. There thus has to be either fiscal expansion or an increase in tax collections. The latter could – but need not – entail higher tax rates. India could be at an inflection point at which its tax-GDP (gross domestic product) ratio begins to grow rapidly, but that is a guess rather than a hard fact. In short, there is ample reason to worry about the fiscal burden of NYAY. ”
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    Niranjan Rajadhakshya on the economic feasibility of NYAY. Students of public finance especially should read this to get a sense of how to judge questions such as the ones put forth in the interview.

Links for 26th March, 2019

  1. “The rising cost of textbooks, then, is a sign of one of the greatest paradoxes of higher education: As everything from tuition to housing to books gets more expensive, the people who are tasked with making sure students receive a good education are being forced to do more work for less money. The result is a world where students and professors alike struggle to get by.”
    Full of interesting snippets, this article helps you understand how expensive education can be abroad. Not just the cost of tuition though, which is large enough as it is – but the cost of textbooks. Just buying your textbooks for the academic year can set you back by around INR 40,000/-.
  2. “What is the traditional lecture? It is a model of learning in which a teacher possesses the knowledge on a given topic and disseminates it to students. This model dates to the beginning of education, when it was the only way of sharing information. In fact, you occasionally still see the person presenting the lecture called a reader, because way back before the internet and even the printing press, a teacher would literally read from a book so students could copy it all down.”
    Classroom lectures are unbelievably boring. There exist a million alternatives that can do a better job, and this article lays out some of them. But at the end of the second decade of the twenty-first century, the idea that we can teach the same way we did throughout the twentieth is just wrong.
  3. “Whichever way one looks at it, the very public unravelling of the enterprise is reminiscent of the past, the saga of Air India and Kingfisher Airlines. There is no denying poor governance –particularly in a business with high cash flows. Equally, the sequels illustrate how vegetating policy and misplaced notions of what constitutes strategic interest left the sector episodically chasing its tail. Consider this: Passenger traffic rose from 68.4 million in 2009-09 to 103.7 million in 2013-14, and to 183.9 million in 2017-18. Clearly there is no dearth of demand and of growth in traffic. Yet three airlines have crashed into the red in the period.Can India afford three Mayday calls in less than a decade in a critical sector?”
    A breezy read about an extremely serious topic. The excerpt above is a sobering read: passenger traffic in India has about tripled over the last ten years. The last ten years have also seen three airlines go under. Something, somewhere, is really and truly wrong.
  4. “Incuriosity is not merely ignorance. Ignorance is a universal trait, people just differ in what they are ignorant about. But Americans are unique in not caring to learn from other countries even when those countries do things better. American liberals spent the second Bush administration talking about how health care worked better in most other developed countries, but displayed no interest in how they could implement universal health care so that the US could have what everyone else had, even when some of these countries, namely France and Israel, had only enacted reforms recently and had a population of mostly privately-insured workers. In contrast, they reinvented the wheel domestically, coming up with the basic details of Obamacare relying on the work on domestic thinktanks alone. The same indifference to global best practices occurs in education, housing policy, and other matters even among wonks who believe the US to be behind.”
    Word for the day: incuriosity. A state of the world in not only do you not know, but do not wish to know. But that apart, the entire post – although a little long – is worth reading to learn more about the specifics of what ails subway construction in the USA.
  5. “Structurally, it is impossible because Kim Jong-un has a very detailed network of surveilling the leaders around him. If you are of high rank, then all the high-ranking officials have to live in the same apartment. They can’t choose where to live. They have to live collectively. You are not allowed to have private time with your friends around you, so the control system of North Korean society is really unimaginable.”
    An interview with a North Korean defector who now lives in South Korea about Kim Jong Un. It is difficult for any of us to understand the extraordinary life of ordinary South Koreans