Monday, 23 February 2004

Highway bill follies

James Joyner has linked a column by Bob “Endangering National Security Since 2003” Novak on the wrangling between Capitol Hill and the White House over the six-year transportation reauthorization bill, coined SAFETEA. As usual, the debate is mostly about how much money to spend and where to find the cash; many House members from both parties want an increase in the federal fuel excise taxes to fund a larger spending program of $375 billion over six years, while the White House wants to limit spending on highways and mass transit to $256 billion.

Sunday, 22 February 2004

Ralph's run

I’m a bit late to the party on this one, but in case you haven’t heard—Ralph Nader will run in 2004 as an independent presidential candidate. What does it mean? Juan Non-Volokh and Glenn Reynolds think it might invigorate efforts to improve ballot access for third parties; some Democrats are apoplectic; Robert Garcia Tagorda thinks it may help Democrats; and Steven Bainbridge, Steven Taylor, and James Joyner used the occasion to dump on third-party candidates in general.

Saturday, 21 February 2004

Toast time

Steven Taylor has posted the most recent iteration of the infamous Toast-O-Meter.

Fundamental truths

Lily Malcolm visited her local Radio Shack and CompUSA stores today, and came back with this nugget of knowledge:

If the CompUSA people really knew much about computers, they wouldn’t be working at CompUSA.

In all seriousness, there are a number of solutions to the problem of getting data from one’s old computer to one’s new computer. If both computers have an Ethernet jack, the preferred option is to either (a) connect both computers to an Ethernet hub or switch using regular Ethernet cables or (b) get a “crossover Ethernet cable.” You can also get something flashy that will walk you through the procedure, like LapLink, but I’m pretty sure the basic software is built into recent versions of Windows… you may need to set up “Home Networking” to do it.

Me? I usually just pull the hard drive out of the old PC, slap it in the new one, and copy the files that way. It’s normally faster, but far more intimidating for the novice.

Rational choice, psychology, economics, and the law

Greg Goelzhauser at Crescat Sententia considers the use and abuse of behavioral economics by legal scholars, jumping off from this interview with Berkeley economist Matthew Rabin. Greg writes:

That humans fall prey to a variety of heuristics is nothing new or extraordinary. What is important for law and economics is if some of these heuristics lead the relevant actors to systematically err in their decisionmaking. Unfortunately, many of those writing in the behavioral law and economics field care little about whether the actors they are concerned with actually rely on the heuristics attributed to them or, if they do so happen to rely, whether reliance actually leads to systematic error. The reason? These are often difficult empirical questions.

I’m not sure that this is an accurate characterization of what a heuristic is; it’s not simply a matter of “falling prey” to them, as many are reasonable shortcuts. You assume that the store with the cheapest price on a product is advertising it, rather than calling every store in town. Instead of digging through the platforms to find the most stridently anti-war presidential candidate, you assume the candidate making the most noise about the war is that candidate.

Now, as Tversky and Kahneman have pointed out, some heuristics do lead to systematic, non-random error. And some of those errors are big enough that the cost associated with the error is larger than the deadweight loss of not using the heuristic (calling every store in the world or spending hours reading the minutae of Lyndon LaRouche’s campaign platform).

Greg’s larger point—that social scientists and legal scholars often assume away the “difficult empirical questions” associated with determining whether systematic error exists—is well-taken, but I think characterizing heuristics as something we “fall prey” to assumes away the more important question of whether the systematic error involved in using heuristics outweighs the costs we avoid by using them.

More blogosphere blocking

It seems the “enterprise web filter software” that Brock tested in September isn’t the only popular censorware product that blocks a large number of weblogs; Eric of Classical Values took SonicWALL’s web filter for a spin and, shall we say, was unimpressed. (Link via Tim Sandefur.)

Friday, 20 February 2004

Dean opposition research fire-sale

The Baseball Crank has all the nasty stuff the Republicans never got to say about Howard Dean neatly collected in a single post. It might come in handy, just in case Dean ever tries to get elected to the city council in your town.

Universities as state self-investments

Brock Sides points out a public policy reason for states to subsidize universities (one that I thought about, but didn’t mention, in my prior post):

State support of higher education may be a rational investment by the state in its own tax base.

There is some merit in this argument, if the marginal increase in tax receipts due to residents’ higher education exceeds the amount of subsidy required—bearing in mind that, ceteris peribus, many of those residents would have gotten a collegiate education anyway. And it’s certainly an empirically-testable proposition, although one that’s difficult to examine in a single blog post.*

Anyway, as a graduate of two state universities and as someone with about a 70% chance of working for a state-supported institution next year (under the completely unreasonable assumption that I have an equal chance of being offered every single job I’ve applied for), self-interest—if nothing else—compels an end to this discussion.

Thursday, 19 February 2004

State universities as an investment

Another thought on state subsidies for higher education: state support of higher education may be a rational investment by the state in it's own tax base. Insofar as students tend to stay in the state where they go to school, and insofar as people with degrees make (and spend) more money, a state university will increase the size of a state's tax base, whether through preventing "brain drain" of its own smart kids, or through "poaching" smart kids from out of state. Just as investing in a child's education may provide returns to the parents when the grateful child helps them financially in their old age, an educated population may be well a "private good" for the state itself.

Colorado controversy

John Cole is right to be disgusted by ex-Colorado coach Gary Barnett’s remarks about former CU player Katie Hnida, who was allegedly raped by one of her former teammates. Barnett said, apparently in response to an inquiry from a reporter as to the reason for Ms. Hnida’s departure from the team (and transfer to New Mexico) in 2000:

It was obvious Katie was not very good. She was awful. ... Katie was not only a girl, she was terrible. OK? There’s no other way to say it.

Not only does the comment show a lack of seriousness by Barnett, it also makes me question his abilities as a coach and leader. Good coaches don’t speak ill about their players in public; that’s close to the cardinal rule of coaching. What a dipshit, and good riddance.

More on this story in Friday’s New York Times.

Abort, retry, fail

Matt Stinson thinks Julian Sanchez’s argument by analogy on the term “unborn child” fails. Julian argues:

If you don’t share their view about the moral status of the fetus, that’s like calling a pile of bricks an “unbuilt house” or, for that matter, a blank screen an “unwritten blog post.” Let’s not give them this one.

On the other hand, Matt says:

I’m pro-life, though not stridently so, but would a pile of bricks, without human action, begin to form a house over a period of nine months, unless you smashed those bricks down with a sledgehammer, and would a blog post begin to appear on that blank screen unless you pressed the delete key repeatedly?

Luckily enough, however, Smokey the Bear may still call discarded lit cigarettes “potential forest fires.” Or something. Semantics was never my strong suit…

State universities as public goods

Will Baude is the latest to jump into the public universities argument (roughly between Jack Balkin and the Volokh conspirators); Will writes:

I don’t particularly have a problem with government involvement in the private education market—either through direct subsidy (which is probably unnecessary) or through regulating the likely capital market failure. In other words, government-guaranteed student loans are great; a “graduate tax” could accomplish the same thing.

I used to generally agree with Will on this point; however, I’ve come to think that government subsidies—like guaranteed student loans, Pell grants, and student loan interest credits—make public and private universities insensitive to price as a rationing mechanism. This leads to much of the same problem we see in the health care market: most consumers don’t discriminate on the basis of price, because they have no personal stake in the price of service. In the case of higher education, the problem is more subtle, as at least there are direct costs to the consumer—they just aren’t felt until after college, due to in-school deferments of loan interest and principal payments. Regardless, this allows universities to increase tuition and fees at rates well in excess of inflation.

The disconnect between price and demand also allows universities to use price as a “prestige” factor; although virtually nobody actually pays $40,000 a year to go to Harvard, the price premium makes it appear as if you’re getting a better education than you would paying $15,000 to go to Americana State University. (You probably do get a better education at Harvard, but I suspect the premium is not worth $100,000.)

There are good reasons to criticize public subsidies of state universities—particularly in a poor state like Mississippi—but public subsidy of colleges and universities in general bears considerable scrutiny as well.

Update: Will Baude responds:

One thing to think about—

The reason, in general, that American[a] State U has a tuition of 15,000 to Harvard's 40,000 has a lot to do with the subsidies that American State provides to its U. To be sure, some private colleges are cheaper than others, but lots of kids I knew did indeed take price (and their financial aid packages) into account when choosing between them. And the diversity of price in private universities is pretty small—I don't know whether that's due to a universal-ness of costs (I doubt it) or more likely because demand is fairly price-inelastic. While it's true that subsidies (and to a lesser degree, loans) encourage that elasticity, it's not actually clear that's bad. On the one hand, some kids go to Harvard who really should have gone to Miss. But on the other hand, some kids go to Miss who otherwise wouldn't have gone at all.

Just a thought.

My experience as an undergrad (granted, 5+ years ago) was that there was more price differentiation among private universities; I know the tuition at Rose-Hulman was significantly lower than that of Georgetown, and the price differential was more than could be justified on the basis of cost of living differences between D.C. and Indiana (not to mention that Rose-Hulman is a superior academic institution to Georgetown). There may be less differentiation among elite-tier private institutions like Chicago, Stanford, and the Ivys, however (some of that used to be due to now-illegal agreements among the Ivys to limit financial aid awards to exceptional students).

Now it is true that price does matter to some people, even with government subsidies (both to universities and students). On the other hand, I find it difficult to justify subsidizing a flagship public university like Ole Miss on the backs of working class people; that being said, Ole Miss may be something of an aberration in this regard, although I suspect a number of other colleges, like the University of Alabama, Auburn, and LSU, are similar “blue blood” state universities (to say nothing of elite-level state universities like UC-Berkeley and Michigan, which are far more selective).

Screw the t distribution

Alex Tabarrok endorses an econometrics text that makes two rather bold simplifying assumptions:

Stock and Watson use a “robust” estimator of standard errors right from the beginning. This means that they can dump an entire chapter on hetereoskedasticity and methods of “correcting” for hetereoskedasticity (these rarely worked in any case.)

They do not waste time discussing the difference between the t-distribution and the normal-distribution. Instead, they assume reasonably large datasets from the get-go and base their theorems on large-sample theory.

I can sort-of-see the value of always using heteroskedasticity-consistent standard errors (although I think it’s better to model the heteroskedasticity if you can), but dispensing with the t distribution seems to be a bridge too far. Large sample theory is nice, but (a) common econometrics software (e.g. Stata, LIMDEP, and R) uses the t distribution even into sample sizes in the 100s, so you need to discuss it anyway, and (b) there are plenty of theorems that can only be tested with small samples due to data limitations. Now, these may be less problematic in the large-n world that economists inhabit, but I’d have real trouble justifying such a text for a graduate seminar in political science methods (undergrads rarely get beyond bivariate regression).

Zippergate redux

Since John Kerry’s alleged “zipper problem” has been debunked, Andrew Sullivan notes that Sid Blumenthal (not to be confused with Atrios) thinks John Kerry should sue the Sun for libel. Funnily enough, Jeffrey Archer had much the same idea under similar circumstances, but it didn’t quite work out the way he planned…

Update: Conrad has thoughts in a similar vein. And thanks to Glenn Reynolds for the link!

Politicizing science

CalPundit and Steve Verdon are among those noting a report from the Union of Concerned Scientists over the Bush administration’s use and alleged abuse of science. Steve writes:

Personally I think the notion of impartiality is misleading. All scientists have their own views on the issues and particularly the area they are researching. ... Of course, the fact that scientists and researchers themselves have their own views and biases does not let the Bush Administration off the hook when it comes to possibly distorting science. However, it cannot be ignored that the Union of Concerned Scientists can also be said to have an agenda and that this agenda may be playing a role as well in this report when that agenda diverges from the agenda of the Bush Administration.

There’s not much to disagree with in either post, but something to bear in mind is that science is always politicized when it is used to make political decisions; there’s no way around it. For example, if a hypothetical study shows that tightening emissions standards will save 3000 lives a year, but cost consumers $100 billion per life saved, politics is going to decide which figure gets emphasized.

Update: More at the Dead Parrot Society.

Automatic for the People

Michael Jennings has uncovered a bit of a visual oxymoron over at TransportBlog.

Wednesday, 18 February 2004

Sharing the love

David Pinto has a revenue sharing plan for baseball:

I’ve felt for a long time that what baseball needs is a competitive form of revenue sharing. Teams would be paid for their road games based on how many people they brought in, not just in the stadium, but for the TV and radio audiences as well. This would encourage teams to sign an Alex Rodriguez, since they would make money from the fans he would draw on the road.

Something vaguely similar happens in college football—road teams in non-conference games normally get an appearance fee. Something like that makes sense for baseball as a revenue-sharing mechanism—after all, George Steinbrenner wouldn’t be making much money if the Yankees didn’t play opponents at home. Someone more awake than me will have to figure out the fairest way of implementing such a system; my guess is that, unreliable as they are, tying the “opponent share” to the existing TV and radio ratings is the way to go.

Tuesday, 17 February 2004

More on SUV safety

Following up on a post of mine from December, Gregg Easterbrook has an good article on SUV safety at TNR online. Choice quote:

Georgetown University professor Ted Gayer, writing in the March issue of the technical publication Journal of Risk and Uncertainty—which is edited by W. Kip Viscusi of Harvard, who is one of the nation’s leading academic conservatives—finds that having lots of SUVs and pickup trucks on the road increases total fatalities, by causing more deaths not just in regular cars but more deaths inside the SUVs and pickup trucks, too.

And just in case you don’t trust that scurrilous Gregg Easterbrook, here are a few quotes from the number two result from Google for “auto insurance rates suvs,” at esurance.com:

With larger cars on the road, drivers of small cars are at risk when they’re involved in a side-impact collision with pickups or SUVs. SUVs and pickups are generally heavier and higher riding so their bumpers can be deadly to smaller cars on impact.

Minivans don’t pose as much of a threat because they don’t weigh as much as SUVs. Their bumpers are often the same height as many smaller sized cars.

Since SUVs, minivans, and light trucks can be hard to handle and can cause more damage in the event of an auto insurance claim, auto insurance rates for these vehicles tends to be higher than for smaller cars.

If you want to know whether a vehicle is safe, ask the auto insurance companies. It’s their business to know.

We all know how painful that can be (Wisconsin edition)

Wonkette has the exit poll numbers:

Kerry 38
Edwards 33
Dean 17

Maybe we will have a real contest after all…

Andre 3000: not following manufacturer’s directions

If you’ve been following Outkast’s advice for developing your instant photos, the folks at Polaroid say you may be damaging them. My recommendation: shake it like a 1980’s-vintage Late Night “Viewer Mail” letter instead.*

Also worthwhile: the Peanuts “Hey Ya” video. No, seriously.

The door won’t hit you on the way out, because I’ll be holding it for you

Professor Bainbridge notes a very marked contrast between John Kerry’s rhetoric on the campaign trail and what his aides have been telling lobbyists about Kerry’s bona fides.

Monday, 16 February 2004

The registration virus takes another victim

Apparently this weekend’s theme in the blogosphere is registration required. Apropos of that: our friends at the CA are going to start requiring registration in the near future.

Choose your tyranny

I haven’t waded into the big war between Randy Barnett, Prof. Bainbridge, Brett Marston, and others over the proper role of the courts; that isn’t to say I’m not interested, just that I haven’t had a chance to sit down and really articulate what I think. Then again, anyone who knows of my affinity for Federalist 10 would probably be able to guess that I’m firmly on the Barnett/Marston side of the debate. For another perspective, see Steven Taylor’s latest post.

Lies, Damed Lies, and ... Economics Professors?

Tyler Cowen, whose blogging at Marginal Revolution I generally admire, is apparently trying to prove that economists really are nothing more than shills for the wealthy. He quotes vapid blowhard George F. Will, who really is nothing more than a shill for the weathly, and asks

In 1979 the top 1 percent of earners paid 19.75 percent of income taxes. Today they pay 36.3 percent. How much is enough?

This is supposed to be some sort of appeal to fairness, I suppose. “It’s just so unfair that the top 1% of the income distibution bear 36% of the cost of the federal government.”

Let’s just set aside the fact that Will and Cowen are focusing solely on federal income tax, and ignoring the regressive federal payroll tax and state sales taxes, both of which raise the bottom 99 percent’s share of the overall tax burden.

The important point is this: statistics about the percentage of the tax burden born by a given segment of the income distribution are utterly meaningless in absence of data about what percentage of overall income (or wealth, or whatever you think is fair to tax) that segment controls. Even if we instituted a perfectly flat income tax, the top 1% would pay a greater portion of the tax burden than people at the bottom of the income distribution, for the simple reason that they have more income.

The reason that the top 1% pay a heavier share of the federal income tax burden now than they did in 1979 is not that the federal income tax has become more progressive. On the contrary, federal income tax has become flatter since 1979. The rich pay a higher share now because the rich have seen sharper gains than the rest of the population. By and large, most people have gotten richer in the past two decades, especially during the 90s, but the rich have gotten more richer than the rest of us.

My opinion as a utilitarian: Fairness is a useful concept for dividing splitting the cost of pizza between friends, but worthless when trying to determine what share of the tax burden an individual should bear. Economist can tell us about the effects of various tax schemes on economic efficiency, i.e. the total size of the economic pie as measured in dollars, euros, or what have you. But any gains in efficiency brought about by making the tax system less progressive may be offset by the diminishing marginal utility of money. If we shift $100 dollars of the tax burden from Bill Gates to some pauper, there’s a net loss in utility, because that $100 was worth more to the pauper than to Bill Gates, who could afford to wipe his ass with $100 bills if he wanted to. Somewhere in the middle lies the perfect tax system that maximizes utility, but we’re not going to find it by bloviating about fairness.

My opinion as a snarky blogger: You're supposed to post your insightful stuff at Marginal Revolution, Tyler, and post crap like this over at the Volokh Conspiracy, where it fits in well with crap by Barnett and Bernstein.

UPDATE: Dan Chak makes pretty much the same point I do, and then fills in the missing data.

Bonne anniversaire

Happy first anniversary to PoliBlog!