Two anecdotes on command economies

This is Joseph

Mark Evanier:

When I was a kid, one of the reasons we were taught that Communism was bad was that since there was no competition, there was no choice. The markets all sold the same kind of bread and the same kind of canned beans and the same kind of salad dressing…and if you didn't like it, too bad. You couldn't go to another store and find an alternative. For some reasons, people who think Communism is the greatest evil on the planet cheer on big companies getting bigger even though it leads us in the same direction.

A quote from an article by Gary Leff (via Marginal Revolutions):

It would have made more sense for United Airlines staff to offer a larger incentive for passengers (who did not have to be at their destination that evening) to agree to take a later flight, she adds. Virginia Shiller says the staff were only permitted to offer volunteer an amount totaling several hundred dollars, but it may not have been enough of an incentive to persuade volunteers to take a later flight. “It was totally irrational. They probably could have gotten a volunteer to take $2,700. They have these formulas. It’s like something they do in socialist countries.” 

 One of the interesting features of modern economies is that we still have command economies but they are corporations and not government bureaus.  I suspect part of the reason is transaction costs -- you cannot make everything open to constant bidding without gross inefficiency.  The other is that people like to have power. 

However, the United States seems to be an outlier on the degree of focus on corporate command economies.  I am starting to wonder if this is because the country is so large.  The smaller the country, both in geography and population, the easier it is to create effective mixed economies.  Canada has managed it by being under-populated and very decentralized.  England is geographically small, isolated from hostile neighbors and, even today, has fewer people (63 million) than the United States (325 million). 

It seems worth thinking about. 

Bad grading idea

Via Tyler Cowen:

 I will submit your papers (blind) to external referees as well as myself for assessment, an A grade will be limited to those papers, and only those papers, that are recommended for acceptance or conditional acceptance, a B grade will be assigned to those papers that receive a recommendation of revise and resubmit, and a C grade will be assigned to those papers that are rejected by the external referees and myself.
 

I would be quite annoyed to discover that I was putting in the hours to evalaute a paper only to discover that I was doing a professor's job of grading said paper.  Furthermore, it seems that the editor is also the professor for the course.  I would be reluctant to evaluate a student or peer at tmy institution.  The less distance, the more I would be reluctant to do so.  The professor in queestion is willing to blind the papers for the external reviewers, who can not possibly be as potentially biased as a professor with their own students. 

I am also wondering about the standards of a journal in which revise and resubmit is a B grade.  There cannot be many A's.  I have (once) had a paper accepted without revisions but it was definitely not the first time it was ever sent to a journal.  The idea that a paper done in a single semester course (in parallel with other classes) would be a paper so high quality that it was accepted without revisions less than 4 months of work would be incredible in Epidemiology. 

Environment is complex

Via Tyler Cowen:

A case in point is provided by the recent study of regular tobacco use among SATSA's twins (24). Heritability was estimated as 60% for men, only 20% for women. Separate analyses were then performed for three distinct age cohorts. For men, the heritability estimates were nearly identical for each cohort. But for women, heritability increased from zero for those born between 1910 and 1924, to 21% for those in the 1925-39 birth cohort, to 64% for the 1940-58 cohort. The authors suggested that the most plausible explanation for this finding was that "a reduction in the social restrictions on smoking in women in Sweden as the 20th century progressed permitted genetic factors increasing the risk for regular tobacco use to express themselves." If purportedly genetic factors can be so readily suppressed by social restrictions, one must ask the question, "For what conceivable purpose is the phenotypic variance being allocated?" This question is not addressed seriously by MISTRA or SATSA. The numbers, and the associated modeling, appear to be ends in themselves.

The idea that culture, itself, is an environmental exposure does shed some serious doubt on twin studies as the gold standard to separate genetic and environmental influences on phenotypes. Tyler Cowen says it well here:

"Culture" and "genes" are two major factors determining individual outcomes, toss in parenting, and if you wish call parenting and culture two parts of "environment." It is obvious that culture matters a great deal, and this comes from knowledge which existed prior to rigorous behavioral genetic studies.

I say "soda" and people in Nebraska say "pop." Singapore vs. southern China. German musical tastes in 1780 vs. today. Rural Africa vs. urban Africa. Most concretely, if I meet someone I want to know what country he came from and grew up in; in fact that is the first thing I wish to know. "The culture word" may be overused and abused, but still the power of culture is evident.

I think that we should think carefully about how quick we are to ascribe behaviors to genetics (once we account for within culture variability) without considering between culture variability. Even worse, it is not clear that the modern world has a sufficient degree of cultural variation (given our connectivity in the modern world) to even measure this parameter properly.

Mark also has another insight as to a limitation of twin studies that I hope he posts at some point.

Small Schools

I often disagree with Alex Tabarrok on education; I think we are both arguing for a better world but we have somewhat different ideas as to the best approach. But his article on small schools is really worth reading. Heck, every epidemiology student should read the article to remind themselves of the hazards of trying to interpret the ranks in a population without also interpreting the level of variance.

Very well done.