Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Monday, February 09, 2026

Review: Thinking In Systems: A Primer

Thinking In Systems: A Primer Thinking In Systems: A Primer by Donella H. Meadows
My rating: 4 of 5 stars


An eye-opening book, in the sense that, chances are, you've already been using these methods for thinking about certain things in life, but hadn't even thought about applying them to others. At least this was the case for me. 


Some of the concepts were fascinating, like Romania's attempt to increase population by banning abortion, and how it failed miserably. 

I think I would've preferred either a more comprehensive list of use cases or else a more narrow scope (i.e. how this applies to businesses, etc.). Regardless, some great concepts and an excellent primer. 




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Sunday, June 15, 2025

Review: Order without Design: How Markets Shape Cities

Order without Design: How Markets Shape Cities Order without Design: How Markets Shape Cities by Alain Bertaud
My rating: 5 of 5 stars

I think I figured out what I want to do when I grow up.

Urban planning seems to be a fascinating endeavor, and during the course of this book I kept thinking about how to apply other economics lessons I learned back in my grad school days, from hydraulics (information economics) to game theory. I'm sure most of it would lead to nothing, but it would be fascinating nonetheless, especially considering the models that can be created for traffic flow, population increases/decreases, etc.

Regardless, I don't know enough to confirm or debunk anything the author says, although my impression was that he wanted to get people thinking about urban planning in a new way (using economics) than anything.


https://4201mass.blogspot.com/


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Wednesday, February 12, 2025

Review: Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty

Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty by Abhijit V. Banerjee
My rating: 4 of 5 stars

I wouldn't call this "A Radical Rethinking", but there were some refreshing points of view and ideas. There are some interesting examples of how people in poor communities act rationally, or don't, or seemingly don't but in actuality are very rational. In other words they act much like other people, just in very different circumstances. And they are, in fact, responsible for much more in their own lives (sanitizing their own water, finding every meal and ensuring it is safe, etc. etc.).

A very interesting read with useful conclusions.


https://4201mass.blogspot.com/

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Tuesday, December 03, 2024

Review: Love, Money, and Parenting: How Economics Explains the Way We Raise Our Kids

Love, Money, and Parenting: How Economics Explains the Way We Raise Our Kids Love, Money, and Parenting: How Economics Explains the Way We Raise Our Kids by Matthias Doepke
My rating: 5 of 5 stars

Quite a fascinating look at parenting and the numbers behind the phenomena.

Why are there so many helicopter parents today compared to the 70s and 80s? And why were parents so permissive then? And why did the baby boom even occur? It is quite evident when looking at the data. The rise in inequality will likely exacerbate the helicopter mom/ tiger mom mentality. But at the same time, as we saw in the past, when middle class people try to get ahead, they end up acting very differently from the leisure class (I wish they had discussed the implications of this latest one a bit further).

Highly recommended.

https://4201mass.blogspot.com/

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Saturday, July 27, 2024

Review: Fully Grown: Why a Stagnant Economy Is a Sign of Success

Fully Grown: Why a Stagnant Economy Is a Sign of Success Fully Grown: Why a Stagnant Economy Is a Sign of Success by Dietrich Vollrath
My rating: 3 of 5 stars

I really liked the premise and the entire idea, as well as the author's explanation. However, if you have a basic knowledge of economics, you can pretty much start reading at Chapter 8. This discusses the Baumol Effect. What he concentrates on here is the fact that goods can lower labor intensiveness over time (over time fewer people require less time to make the same product) while services can't nearly as much, since labor tends to be the very essence of the offering (a 1 hour doctor's session must last a full hour), and that, as we get richer, we tend to use a greater fraction of our income on services than goods. So over time as the economy grows we consume more of the labor intensive offering, which results in slower growth.

That's essentially the idea. Sandwiched between many chapters explaining variables, and explaining why other ideas don't fit the bill. An example I like is given on page 209:

'As an aside, we know something like this can work because we've seen it before. After World War II, both Germany and Japan had some of the highest growth rates of GDP per capita ever recorded, and that high growth lasted for close to two decades. It was largely because much of their capital and durable-goods stock had been incinerated by firebombing. Is a higher growth rate so important that you'd replicate that level of destruction to achieve it?'

There are many examples of books that would have made excellent articles, but were turned into books for lucre. I believe this is one of them.




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Sunday, October 01, 2023

Review: An Economist Gets Lunch: New Rules for Everyday Foodies

An Economist Gets Lunch: New Rules for Everyday Foodies An Economist Gets Lunch: New Rules for Everyday Foodies by Tyler Cowen
My rating: 4 of 5 stars

If you decided to travel around with a friend who is a foodie as well as an economist, your conversations would probably sound a lot like this book. 

In other words, I want to go travel with a foodie economist at some point.

The point are very interesting, from the observations to the asides, but there are no real studies or analyses. Everything is anecdotal, albeit from an economist's point of view. 

I guess I'm trying to say that you can enjoy this book, but don't use it to convince anyone about any big issue items, if that makes sense. 

Still, entertaining and quite a few of his rules of thumb convinced me. 

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Friday, February 24, 2023

Review: The Address Book: What Street Addresses Reveal About Identity, Race, Wealth, and Power

The Address Book: What Street Addresses Reveal About Identity, Race, Wealth, and Power The Address Book: What Street Addresses Reveal About Identity, Race, Wealth, and Power by Deirdre Mask
My rating: 5 of 5 stars

We never stop to think about the importance addresses have in our everyday lives. Without addresses we cannot receive (or apply for) official documents, benefits, jobs, etc. Even if we're not homeless, we need an address. And yet addresses aren't as ubiquitous as we'd think. West Virginia barely had any outside cities prior to 1991. 

Also, did you know you can buy any old address in New York for 11,000 dollars? Which is why Trump was able to open a building on "1, Central Park West" (he had the address changed from 15, Columbus Circle), and then he got mad when Time Warner also got the address "1, Central Park" (rather than 25, Columbus Circle). 

And What3Words seems like a fascinating idea. 

I have to say, however, that the idea brought up for creating an address for homeless people using houses that aren't in use at the moment seems a tad flawed. In theory it sounds good, but I could see these rich people with empty real estate protesting that they plan on moving back any time now, so the address can't be used. or something. 

However, I do think someone enterprising could come up with a solution. At first I thought just providing PO Boxes, like some coworking spaces do, would work. But I could see places of employment figuring that out and discriminating against these. Otherwise maybe something like choosing a place that shows up on Google maps, but with a different number. For example, my building has 7 floors, but there would be floors 8 through 12, say, which are addresses used for homeless people. They don't really exist, which is ok, since house calls aren't needed. But the post office will have an automatic trigger whenever any one of these addresses is used, to hold onto them in a PO box, which the homeless person can check. 

I'm sure I'm missing something in the details. Still, a very interesting and seemingly surmountable problem, which gets you thinking. 


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Wednesday, September 14, 2022

Review: The Decadent Society: How We Became the Victims of Our Own Success

The Decadent Society: How We Became the Victims of Our Own Success The Decadent Society: How We Became the Victims of Our Own Success by Ross Douthat
My rating: 5 of 5 stars

This book reminded me a great deal of Tyler Cowen's "The Great Stagnation" (which the author then mentioned several times). This book, however, then takes it further and is more updated. Unfortunately, it isn't updated enough since it was written before COVID (although he does mention that if a pandemic occurs under Trump it would be a disaster) and before Russia's invasion of Ukraine. 


Some interesting points:
He quotes the same scenario quoted by Cowen in "The Great Stagnation", which still holds now as it did 10 years ago, and which I'll paste in full here below:

<blockquote>
Picture a man or woman of the late 19th century, perhaps your own great-grandfather or great-great-grandmother, sitting in an ordinary American home of 1890. And now pitch him forward in an H G Wells machine, not to our time but about halfway – to that same ordinary American home, circa 1950.
Why, the poor gentleman of 1890 would be astonished. His old home is full of mechanical contraptions. There is a huge machine in the corner of the kitchen, full of food and keeping the milk fresh and cold! There is another shiny device whirring away and seemingly washing milady's bloomers with no human assistance whatsoever! Even more amazingly, there is a full orchestra playing somewhere within his very house. No, wait, it's coming from a tiny box on the countertop!
The music is briefly disturbed by a low rumble from the front yard, and our time-traveler glances through the window: A metal conveyance is coming up the street at an incredible speed – with not a horse in sight. It's enclosed with doors and windows, like a house on wheels, and it turns into the yard, and the doors open all at once, and two grown-ups and four children all get out - just like that, as if it's the most natural thing in the world! He notices there is snow on the ground, and yet the house is toasty warm, even though no fire is lit and there appears to be no stove. A bell jingles from a small black instrument on the hall table. Good heavens! Is this a "telephone"? He'd heard about such things, and that the important people in the big cities had them. But to think one would be here in his very own home! He picks up the speaking tube. A voice at the other end says there is a call from across the country - and immediately there she is, a lady from California talking as if she were standing next to him, without having to shout, or even raise her voice! And she says she'll see him tomorrow!
Oh, very funny. They've got horseless carriages in the sky now, have they?
What marvels! In a mere 60 years!
But then he espies his Victorian time machine sitting invitingly in the corner of the parlor. Suppose he were to climb on and ride even further into the future. After all, if this is what an ordinary American home looks like in 1950, imagine the wonders he will see if he pushes on another six decades!
So on he gets, and sets the dial for our own time.
And when he dismounts he wonders if he's made a mistake. Because, aside from a few design adjustments, everything looks pretty much as it did in 1950: The layout of the kitchen, the washer, the telephone... Oh, wait. It's got buttons instead of a dial. And the station wagon in the front yard has dropped the woody look and seems boxier than it did. And the folks getting out seem ...larger, and dressed like overgrown children.
And the refrigerator has a magnet on it holding up an endless list from a municipal agency detailing what trash you have to put in which colored boxes on what collection days.
But other than that, and a few cosmetic changes, he might as well have stayed in 1950.
</blockquote>

Another section I will quote (paraphrase) in full:

<blockquote>
A glance at the historical record suggests that something more than just inequality and austerity and outsourcing is contributing to deceleration and stagnation. If an unequal society and an entrenched ruling class were sufficient to choke off growth, the industrial revolution would have never gotten off the ground. If soaring incomes fortunes came at the expense of middle class incomes, the 1990's would've been the worst decade for the middle class rather than the best. If correcting neoliberalism with socialism were the ticket, then Venezuela would be the tiger of Latin America, rather than the basketcase. If Austerity has weakened western economies, it is the austerity that would've been considered profligate 50 years ago, with far more welfare spending and higher deficits in the 1950s and 1960s. 
</blockquote>

Anyway, this book doesn't have all the solutions, but it does at least raise almost all the questions and outline various possible scenarios and outcomes. Not all of them are very palatable. 

I would still like an update, or at least to know how recent events have altered the author's views. 


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Friday, September 02, 2022

Review: Eurotragedy: A Drama in Nine Acts

Eurotragedy: A Drama in Nine Acts Eurotragedy: A Drama in Nine Acts by Ashoka Mody
My rating: 0 of 5 stars

Ok I'm not going to go through this entire book. I mean, I'm no economist (although I do have a Master's degree in it, so I know a little something), and I tend to see myself as quite neoliberal, but this book reads more like a rant than a true critique. I like to keep open to opposing views on anything, since I figure I'll either learn something new or strengthen my argument against it, but this would do neither. It seems too obviously biased, and catering to people who already agree with it. Simple statements like the Euro "carried no obvious benefits" seem childish, especially since he mentioned some of them right at the beginning (more trade & travel between countries, as well as between Europe and the rest of the world). Not to mention the fact that these countries had been at war a few decades earlier, which devastated all countries involved, and a monetary union is a pretty good deterrent to that.

Anyway, there might be some good arguments somewhere in this book, but I'm not willing to trudge through 672 pages to find out. 

I won't rate this book since I didn't finish it, but this is my rant on the author's rant. 

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Monday, August 22, 2022

Review: The Secret Life of Groceries: The Dark Miracle of the American Supermarket

The Secret Life of Groceries: The Dark Miracle of the American Supermarket The Secret Life of Groceries: The Dark Miracle of the American Supermarket by Benjamin Lorr
My rating: 4 of 5 stars

I wasn't sure what to expect, but it was actually pretty darn good as a book. 

The histories of 7-11 and Trader Joe's were fascinating to me, as was that of the early grocery store in general (and ice stands!). 

He then narrates his experience living with a truck driver, which was extremely interesting. I remember I had a great uncle who was a truck driver his whole life, and was extremely proud of all the places he'd been. I guess times have changed. 

He then got a job at Whole foods, which was informative to delve into. 

The final chapter on Thailand/Myanmar is the most depressing, but probably the most important. Through it all he is actually quite nuanced and goes out of his way not to generalize. 


Having said all that, this is very much "qualitative" rather than "quantitative", with mostly anectodal tidbits rather than data, and definitely more subjective than not. That isn't to say I disagree with what he says (and I'm in no position to do so, since he clearly did his homework), but I guess it would have been nice to have some quantitative studies or something to go along with this. 


PS:
I saw a reviewer saying this book was too "woke", which seems extremely odd. While I'm definitely not a fan of the "wokeness" surrounding me, I don't see how it applies to this book. I guess mentioning truck drivers not being able to earn a living and fishermen being exploited in Thailand is woke. What was it called when we talked about exploitation in the 1980s and 90s then? 
I'm thinking some reviews say more about the reviewer than the book. 

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Friday, April 01, 2022

Review: How Adam Smith Can Change Your Life: An Unexpected Guide to Human Nature and Happiness

How Adam Smith Can Change Your Life: An Unexpected Guide to Human Nature and Happiness How Adam Smith Can Change Your Life: An Unexpected Guide to Human Nature and Happiness by Russ Roberts
My rating: 4 of 5 stars

This is basically an excellent book review of "The Theory of Moral Sentiments" by Adam Smith, which is probably better than just reading the book itself, since Roberts obviously understands a great deal about Smith and about what he meant by certain arcane expressions, etc. In fact, maybe it's more like taking a seminar on the book. Regardless, the outcome is a sort of self-help book, not about economics, but more about what today we might call Behavioral economics. 

Most of the points being made aren't necessarily new, but in fact it is sometimes surprising how certain concepts that get labeled "new age" were in vogue in the late 1700s. 

An interesting parallel Roberts noted was how since the War on drugs started in the 1980s, there has actually been a bigger decrease in smokers than in drug users. Sometimes you can't legislate things out of existence. 


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Friday, March 25, 2022

Review: Empire of Silver: A New Monetary History of China

Empire of Silver: A New Monetary History of China Empire of Silver: A New Monetary History of China by Jin Xu
My rating: 5 of 5 stars

At first I thought this book would basically be an economic history of China. Then it seemed like it was one of those books overly emphasizing one single item throughout history (c.f. Salt, Cod, etc.). It turned out to be a combination of the two. Silver really did overly influence China's trajectory, especially during the late Qing dynasty. 

I found the story of Zhong Gongquan, Song Hanzhang and the Bank of China to be amazing. I hope someone makes a short movie of this entire incident or something. When Yuan Shikai declared himself emperor, government finances were in tatters. So the government defaulted, and said its banknotes would no longer be accepted. Zhang and Song, after initially panicking, got together and "they made an astonishing decision, which was to categorically refuse to execute the order in hopes of gaining the public's understanding and support". 

Basically they said the government had no control over their monetary policy and they would continue to accept the banknotes. They were then worried Beijing would just fire them, so they asked the international shareholders to sue them personally (!!), so that they would be held responsible regardless. 

Then they opened the bank, and there was a run, but it was mostly people with small notes. They remained open Saturday afternoon and Sunday (usually bank holidays), and all this quelled the panic. Then they were pretty much out of money, but other banks (HSBC and Yokohama) loaned them enough to cover the overdraft, and so they survived.  (pp 259-261)

Another interesting point was the take on the opium wars, and how they just precipitated what was already inevitable. Since China refused to engage in "trade", but only in "tribute", it didn't enter into any treatise, but still let the foreigners buy Chinese products. The emperor said China already had everything it needed, so there was no need to trade. Except that actually China did need Silver, which it received from trade. When the trade in silver dried up, chaos ensued. 

Some  of my notes:
"Let’s shift the scene back to 1262, when the two poles of world civilization, Venice in the West and the Southern Song in the East, both faced the specter of war, and funding for these wars hung by a thread.  Almost simultaneously, the authorities of both places came up with plans to deal with their emergencies, both involving the most advanced financial innovations of that time.  The Southern Song’s Jia Sidao raised military funding by using the steadily devaluing huizi to buy up public land the strip the populace of wealth.  Venice took a different road: Its parliament authorized the government to mortgage its tax revenue, and when a fiscal deficit developed, the administration issued government bonds paying interest of 5 percent.  In retrospect, Venice’s financial innovation summoned the magic power of public debt as capital and effectively led Europe into an era of financial revolution.  As for china, the excessively issued huizi did not regain the favor of the market; rather, public discontent and unrest threw open the door for invasion by the Mongolians."
(p. 34)

Yap Island, and the trade in rocks 
Keynes and Friedman, who probably never agreed on anything when it comes to economics, "each paid tribute to the monetary concepts of the Yap islanders" (David Hume: 'humanity has endowed gold and silver with imagined value'). 
(pp. 43-44) 

Isaac Newton served as warden of the Royal Mint for 28 years, during which time England moved over to the gold standard. He came up with a gold-silver exchange rate which was not perfect, even "excessively high", but it created a "chain effect and gave rise to surprising consequences that developed in England's favor" (p. 60)

Chinese tend not to see the Song as a successful dynasty and "reading Song history is a tearful process" (p. 69), but achievements of the Song are highly praised overseas. 
It boasted the "greatest economic accomplishments of China's imperial dynasties (p. 74)
It is considered the "world's first maritime empire" (p. 76)
Population and per capita income both increased by over 200 percent. (p. 76)
Song dynasty's economic prosperity "not only exceeded that of the Tang dynasty.., but was a time in Chinese history when per capita income briefly surpassed that of Europe" (p. 77)

In terms of per capita income... it rose to $464 at the end of the Northern Song and then continued to rise to $585 in the last part of the Southern Song. Its economic scale far exceeded Europe's and placed it first in the world. China did not achieve this income level again until the 1980s." (p. 208)


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Friday, January 28, 2022

Review: How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy

How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy by Mehrsa Baradaran
My rating: 5 of 5 stars

Ironically, I know of the author because of her book reviews here on Goodreads, which I follow and enjoy reading quite a bit, so when I saw her book on sale, I bought it right away. 

This book does a great job showing how Banks are not solely private enterprises, nor are they public, but they are (and need to be) a hybrid. They are codependent with the government, which, unfortunately, tends to give banks the upper hand. If banks risk going out of business, the government will step in, but the concentration is "on making banks profitable again", rather than providing a more public good to those in need. This, of course, creates confusion, which once again gives banks the upper hand. 

I appreciate the history of the banking industry, from the 1600's in Europe to Jefferson vs. Hamilton up to modern times. Also the history of credit unions, savings & loans, etc. 

The argument seemed quite convincing to me (although seasoned economists might poke holes in it I guess). The conclusion is then that Postal banks would be an optimal solution. Having grown up in Switzerland, I am a huge fan of Swisspost, which I think is the best type of Swiss bank account (despite the other types being famous for many reasons). In fact, all Swiss people have at least one postal account. So my initial reaction is to agree. Many of the benefits she lists are evident in Switzerland. However, I still hesitate to think it will work well in the US. Aside from the Politicians likely to call it "socialist", and other banks sure to be against it, I'm not all that sure the USPS is well-equipped enough to handle it. Maybe we could start with the USPS issuing certified e-mail (like Switzerland and Italy and other countries have), and if it can handle that change, then maybe it can pivot into banking services. 

Regardless, this book shows very clearly that the banking system in the US has very serious issues. 


4.5 Stars

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Friday, December 24, 2021

Review: Token Economy: How the Web3 reinvents the Internet

Token Economy: How the Web3 reinvents the Internet Token Economy: How the Web3 reinvents the Internet by Shermin Voshmgir
My rating: 4 of 5 stars

Great dive into pretty much everything about Tokens. The dive isn't too deep, but this probably shouldn't be your first foray into Blockchain technology, unless you have a finance background maybe. 

Regardless, I found it very informative, if a tad boring and long-winded in parts. Like with any book about this topic, it will be out of date by the time it goes to print, but it still gives quite a bit of good background information. 

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Friday, June 18, 2021

Review: Ten Lessons for a Post-Pandemic World

Ten Lessons for a Post-Pandemic World Ten Lessons for a Post-Pandemic World by Fareed Zakaria
My rating: 4 of 5 stars

Quite frankly I don't think there was anything earth-shattering here, but it is probably the best compendium of the state of the world up to this point, so should probably be required reading nonetheless. I haven't read a book by Zakaria since The Future of Freedom, and I remember that as being more of a 'quake book' than this. 

Regardless, be sure to read this if you are interested in the state of the world post-2020 (this was written in late 2020, so toward the end of the Trump presidency). 




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Saturday, May 22, 2021

Review: Why Nations Fail: The Origins of Power, Prosperity, and Poverty

Why Nations Fail: The Origins of Power, Prosperity, and Poverty Why Nations Fail: The Origins of Power, Prosperity, and Poverty by Daron Acemoğlu
My rating: 4 of 5 stars

This is a second read for me. I like to read books like this when they are a bit out of date to see if they stand the test of time. This one seemed to, at least re: China. 

I agreed with his premise, but disagreed with some of their examples, at least toward the beginning.

It is true that some countries will not prosper because it isn't in their leaders' interest to allow a democratic government. The authors seem against the idea that these leaders just "need to be educated" as to the correct strategy, a la IMF and World bank, and I tend to agree. 

The poorest parts of South America are the parts that were most under control of the conquistadores (is this true?)

Section 256 of Alabama's constitution still has segregation. Segregation is still law in Alabama. (This is still true today. I looked it up).

I like the idea that (Schumpeter's) Creative Destruction is required for an economy to persevere in the long term, i.e. past the downturns. 

All in all this was a good second read. I'm curious to see how these theories have been updated by the authors.

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Sunday, January 31, 2021

Review: Good Economics for Hard Times: Better Answers to Our Biggest Problems

Good Economics for Hard Times: Better Answers to Our Biggest Problems Good Economics for Hard Times: Better Answers to Our Biggest Problems by Abhijit V. Banerjee
My rating: 4 of 5 stars

The authors bring up an interesting fact at the beginning. Economists have a bad rap. The public will confuse them with TV business evangelists, paid by corporations, and probably also with bankers themselves, while real economists aren't earning millions to tout a company stock, but analyzing data to look at trends, etc. According to them a good way to tell the difference is if the 'economist' tries to predict the future (real economists won't do so, since they know it's impossible). I think the economics profession would do well to hire some marketing specialists. After all, if economists do what they do for the public good, they should probably work on being recognized and taken seriously. 

The issue with reading lots of econ books is that you keep encountering the same "revolutionary experiments" and "studies" over and over again. This one has the obligatory trust/ultimatum game, various Kahnemann/Tversky findings, etc. I'm not saying they shouldn't have included them, since they are important points, but just that readers who are into economics will have seen these before. 

Actually, the section on past immigration, which I expected to be a repeat, had some points that were new to me. I had no idea Benjamin Franklin and Thomas Jefferson were so against German immigrants, and thought they wouldn't integrate with the others. That was new to me (I've heard about other politicians from 100 years ago saying the same about Italian, Irish and Jewish immigrants. 

All in all, however, this book has some very interesting points. At times I thought they showed some bias politically (not with their anti-Trump talk, which was warranted), but there was also a lot of nuance and plenty of data to prove their points. 


Some other notes I took:
"Let's be clear: Tax cuts for the wealthy do NOT create greater wealth"
In the US, 33% of those born in the bottom quintile will stay there, while only 7% will make it to the top quintile. This is the lowest level in the OECD. 
In Europe, these numbers are 26% and 11% respectively. 
"Economics is too important to be left to economists"


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Thursday, November 05, 2020

Review: Everybody Lies: Big Data, New Data, and What the Internet Can Tell Us About Who We Really Are

Everybody Lies: Big Data, New Data, and What the Internet Can Tell Us About Who We Really Are Everybody Lies: Big Data, New Data, and What the Internet Can Tell Us About Who We Really Are by Seth Stephens-Davidowitz
My rating: 4 of 5 stars

I found this a great primer on big data. By and large it had somewhat of a "freakonomics" feel, and the author admits that that was his initial inspiration. But what got me excited was how big data could be applied to pretty much any field from now on. The section toward the end, discussing how Karl Popper's quote re: psychology not being falsifiable now finally seems to be incorrect. 
I think the implications are enormous. Take any field, like anthropology in Japan, as a random example. Based on all records collected and collated ever since written records were kept, entire family trees and histories and movements can be tracked and analyzed. Combine this with historical records on weather, harvests, wars, etc., and we can get much much clearer pictures of not only that a migration occurred due to this or that, but which neighbors moved, which didn't, what happened to their direct descendents, and how that affected whoever is alive today. 
Now imagine what else could be accomplished in pretty much any other field. 

Another interesting point that was pretty much just glossed over was that you shouldn't draw general conclusions from A/B tests. For example, if you have a blue button and a red button, and the red one gets more clicks, this doesn't mean people necessarily have a preference for red. It just means the red button works best on this one particular occasion. 

Regardless, an interesting book. I do wish it had concentrated more on this potential than on the quirky Freakonomics-style subjects, but there you go. 


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Friday, October 09, 2020

Review: Priceless: The Myth of Fair Value

Priceless: The Myth of Fair Value Priceless: The Myth of Fair Value by William Poundstone
My rating: 0 of 5 stars

It turns out that spending a couple of years studying behavioral econ, behavioral finance, and behavioral (fill in the blank), and reading Daniel Kahneman, Richard Thaler, Dan Ariely and the like, pretty much covers most of what this book seems to offer. 

I'm only 50 pages in, but that's my impression, and skipping ahead I see the obligatory Ultimatum game, prospect theory, and other points. I might come back to it if I want a rehash. 

I expected this book to be more business-related, so this might have been my fault. 

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Friday, March 27, 2020

Review: The Signal and the Noise: Why So Many Predictions Fail - But Some Don't

The Signal and the Noise: Why So Many Predictions Fail - But Some Don't The Signal and the Noise: Why So Many Predictions Fail - But Some Don't by Nate Silver
My rating: 4 of 5 stars

I was afraid much of this would be outdated, but, while it obviously talks about issues only until 2012, the information is pretty evergreen. Obviously much has happened since then (Trump, Coronavirus), but most of the information still stands. He mentions how forecasters who don't inform themselves about the issues cannot hope to do well (just looking at charts isn't enough, and you need to understand the human factor).

I also really like his explanation of probabilities and Bayes' theorem, and how they work (and should be taught more in school).

Probably a must-read for people interested in forecasting and prediction in any field.

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