Monday, June 12, 2017

Less than a third of the 65 Chinese highway & rail projects examined were “genuinely economically productive.”

China’s New Bridges: Rising High, but Buried in Debt. By Chris Buckley
TNYT, Jun 10 2017
China has built hundreds of dazzling new bridges, including the longest and highest, but many have fostered debt and corruption.https://www.nytimes.com/2017/06/10/world/asia/china-bridges-infrastructure.html

“The amount of high bridge construction in China is just insane,” said Eric Sakowski, an American bridge enthusiast who runs a website on the world’s highest bridges. “China’s opening, say, 50 high bridges a year, and the whole of the rest of the world combined might be opening 10.”

Of the world’s 100 highest bridges, 81 are in China, including some unfinished ones, according to Mr. Sakowski’s data. (The Chishi Bridge ranks 162nd.)

China also has the world’s longest bridge, the 102-mile Danyang-Kunshan Grand Bridge, a high-speed rail viaduct running parallel to the Yangtze River, and is nearing completion of the world’s longest sea bridge, a 14-mile cable-stay bridge skimming across the Pearl River Delta, part of a 22-mile bridge and tunnel crossing that connects Hong Kong and Macau with mainland China.

The country’s expressway growth has been compared to that of the United States in the 1950s, when the Interstate System of highways got underway, but China is building at a remarkable clip. In 2016 alone, China added 26,100 bridges on roads, including 363 “extra large” ones with an average length of about a mile, government figures show.

[...]

A study that Mr. Ansar helped write [https://academic.oup.com/oxrep/article/32/3/360/1745622/Does-infrastructure-investment-lead-to-economic] said fewer than a third of the 65 Chinese highway and rail projects he examined were “genuinely economically productive,” while the rest contributed more to debt than to transportation needs. [...]

In the country that built the Great Wall, major feats of infrastructure have long been a point of pride. China has produced engineering coups like the world’s highest railway, from Qinghai Province to Lhasa, Tibet; the world’s largest hydropower project, the Three Gorges Dam; and an 800-mile canal from the Yangtze River system to Beijing that is part of the world’s biggest water transfer project.
Leaders defend the infrastructure spree as crucial to China’s development.

“It’s very important to improve transport and other infrastructure so that impoverished regions can escape poverty and prosper,” President Xi Jinping said while visiting the spectacular, recently opened Aizhai Bridge in Hunan in 2013. “We must do more of this and keep supporting it.”

Indeed, the new roads and railways have proved popular, especially in wealthier areas with many businesses and heavy commuter traffic. And even empty infrastructure often has a way of eventually filling up, as early critics of the country’s high-speed rail and the Pudong skyscrapers in Shanghai have discovered.

Why do some societies fail to adopt more efficient institutions in response to changing economic conditions?

The Ideological Roots of Institutional Change, by Murat Iyigun & Jared Rubin
University of Colorado Working Paper, April 2017
Abstract:Why do some societies fail to adopt more efficient institutions in response to changing economic conditions? And why do such conditions sometimes generate ideological backlashes and at other times lead to transformative sociopolitical movements? We propose an explanation that highlights the interplay - or lack thereof - between new technologies, ideologies, and institutions. When new technologies emerge, uncertainty results from a lack of understanding how the technology will fit with prevailing ideologies and institutions. This uncertainty discourages investment in institutions and the cultural capital necessary to take advantage of new technologies. Accordingly, increased uncertainty during times of rapid technological change may generate an ideological backlash that puts a higher premium on traditional values. We apply the theory to numerous historical episodes, including Ottoman reform initiatives, the Japanese Tokugawa reforms and Meiji Restoration, and the Tongzhi Restoration in Qing China.

Friday, June 9, 2017

Physical Safety Promotes Socially (but Not Economically) Progressive Attitudes among Conservatives

Napier, J. L., Huang, J., Vonasch, A. J., and Bargh, J. A. (2017) Superheroes for Change: Physical Safety Promotes Socially (but Not Economically) Progressive Attitudes among Conservatives. Eur. J. Soc. Psychol., doi: 10.1002/ejsp.2315
http://onlinelibrary.wiley.com/doi/10.1002/ejsp.2315/abstract

Abstract: Across two studies, we find evidence for our prediction that experimentally increasing feelings of physical safety increases conservatives' socially progressive attitudes. Specifically, Republican and conservative participants who imagined being endowed with a superpower that made them invulnerable to physical harm (vs. the ability to fly) were more socially (but not economically) liberal (Study 1) and less resistant to social change (Study 2). Results suggest that socially (but not economically) conservative attitudes are driven, at least in part, by needs for safety and security.

Patients’ crying experiences in psychotherapy: Relationship with the patient level of personality organization, clinician approach, and therapeutic alliance

Patients’ crying experiences in psychotherapy: Relationship with the patient level of personality organization, clinician approach, and therapeutic alliance. By Zingaretti, Pietro; Genova, Federica; Gazzillo, Francesco; Lingiardi, Vittorio
Psychotherapy: Theory, Research, Practice, Training, Vol 54(2), Jun 2017, 159-166.
http://dx.doi.org/10.1037/pst0000110

Abstract: The present study sought to further understand patients’ crying experiences in psychotherapy. We asked 64 clinicians to randomly request one patient in their practice to complete a survey concerning crying in psychotherapy as well as a measure of therapeutic alliance. All clinicians provided information regarding their practice and patient diagnostic information. Fifty-five (85.93%) patients cried at least once, and 18 (28.1%) had cried during their most recent session. Patients’ frequency of crying episodes in therapy was negatively related with psychotic level of personality organization, while patients’ tendency to feel more negative feelings after crying was positively related to lower levels of personality organization. Patients’ feeling more in control after crying was positively related with an interpersonal therapeutic approach, while patients’ perception of therapists as more supportive after crying was positively related to a psychodynamic approach. Patients’ tendency to experience more negative feelings after crying was significantly related with both lower levels of personality organization and patients’ perception of the therapeutic alliance as weak. In regard to their most recent crying event in treatment, therapeutic alliance was related to gaining a new understanding of experience not previously recognized by the patient. Further, patients’ experiences of having never told anyone about their experience related to a crying episode, as well as their realization of new ideas and feeling of having communicated something that words could not express was positively related to the goal dimension of alliance. Patients’ perception of crying as a moment of genuine vulnerability, greater feelings of self-confidence and self-disclosure as well as having had a therapist response that was compassionate and supportive, was positively related with the bond dimension of alliance. Clinical implications and future research directions regarding patient crying experiences in psychotherapy are discussed.

Why Elites Love Authentic Lowbrow Culture: Overcoming High-Status Denigration with Outsider Art

Why Elites Love Authentic Lowbrow Culture: Overcoming High-Status Denigration with Outsider Art. By Oliver Hahl, Ezra W. Zuckerman, Minjae Kim
American Sociological Review
http://journals.sagepub.com/doi/abs/10.1177/0003122417710642

Abstract: We develop and test the idea that public appreciation for authentic lowbrow culture affords an effective way for certain elites to address feelings of authenticity-insecurity arising from “high status denigration” (Hahl and Zuckerman 2014). This argument, which builds on recent sociological research on the “search for authenticity” (e.g., Grazian 2005) and on Bourdieu’s (1993) notion of artistic “disinterestedness,” is validated through experiments with U.S. subjects in the context of “outsider” art (Fine 2004). The first study demonstrates that preference for lowbrow culture perceived to be authentic is higher when individuals feel insecure in their authenticity because they attained status in a context where extrinsic incentives are salient. The second study demonstrates that audiences perceive the members of erstwhile denigrated high-status categories to be more authentic if they consume lowbrow culture, but only if the cultural producer is perceived as authentic. We conclude by noting how this “authenticity-by-appreciation” effect might be complementary to distinction-seeking as a motivation for elite cultural omnivorousness, and we draw broader implications for when and why particular forms of culture are in demand.

Mi resumen de lo que los autores defienden: el aprecio por el arte lowbrow* proporciona a ciertas élites un modo eficaz de abordar la inseguridad sobre su autenticidad, dudas que emanan del la denigración del status alto (“high status denigration,” Hahl and Zuckerman 2014). La búsqueda de la autenticidad y el carácter desinteresado, no enfocado en lo lucrativo, de ciertas muestras artísticas, se someten a experimentos con sujetos estadounidenses. El primer estudio muestra que la preferencia por cultura lowbrow percibida como auténtica es alta cuando los sujetos se sienten inseguros sobre su autenticidad. El segundo estudio muestra que los otros perciben a miembros de las categorias denigradas (alto standing) como más auténticos si consumen cultura lowbrow, pero solo si el productor cultural se percibe como auténtico. Este efecto de autenticidad es complementario a la búsqueda de carácter único en la motivación del carácter omnívoro cultural de la élite.

* lowbrow art: An underground visual art movement that arose in the Los Angeles area in the late 1970s. Lowbrow is a widespread populist art movement with origins in the underground comix world, punk music, hot-rod street culture, and other California subcultures. It is also often known by the name pop surrealism. Most lowbrow artworks are paintings, but there are also toys, and sculptures. Many of the creators of lowbrow art are influenced by Acid house flyers, Advertising, Animated cartoons, Circus and Sideshow culture, Commercial art, Comic books, Erotica, Graffiti and Street art, Kitsch, Kustom Kulture, Mail art, Pop culture, Psychedelic art, Punk rock culture, Retro Illustration, Religious art, Pulp magazine art, Surf culture, Tattoo art, Tiki culture, Toys for adults, notably vinyl figurines, anti-political views, among many other things.

Are the ethnically tolerant free of discrimination, prejudice and political intolerance? They aren't.

Bizumic, B., Kenny, A., Iyer, R., Tanuwira, J., and Huxley, E. (2017) Are the ethnically tolerant free of discrimination, prejudice and political intolerance? Eur. J. Soc. Psychol., doi: 10.1002/ejsp.2263
http://onlinelibrary.wiley.com/doi/10.1002/ejsp.2263/abstract

Abstract: We hypothesized that the ethnically tolerant (i.e., people who are anti-ethnocentric and score very low on a measure of ethnocentrism) would perceive people with extremely incompatible values and beliefs as out-groups and would engage in discrimination, prejudice and political intolerance against them. Experiments among Australian citizens in Studies 1 (N = 224) and 2 (N = 283) showed that the ethnically tolerant perceived supporters of a message in favour of mandatory detention of asylum seekers as out-groups and consequently exhibited discrimination, prejudice and political intolerance against them. Study 3 with 265 U.S. citizens showed that, controlling for liberalism, ethnic tolerance led to prejudice against out-groups. This was replicated with 522 UK citizens in Study 4, which also showed that social identity, and not moral conviction, mediated the link between ethnic tolerance and prejudice. The findings suggest that the ethnically tolerant can be discriminatory, prejudiced and politically intolerant against fellow humans.

The self and autobiographical memories of immoral actions

I’m not the person I used to be: The self and autobiographical memories of immoral actions. By Stanley, Matthew L.; Henne, Paul; Iyengar, Vijeth; Sinnott-Armstrong, Walter; De Brigard, Felipe
Journal of Experimental Psychology: General, Vol 146(6), Jun 2017, 884-895
http://dx.doi.org/10.1037/xge0000317

Abstract: People maintain a positive identity in at least two ways: They evaluate themselves more favorably than other people, and they judge themselves to be better now than they were in the past. Both strategies rely on autobiographical memories. The authors investigate the role of autobiographical memories of lying and emotional harm in maintaining a positive identity. For memories of lying to or emotionally harming others, participants judge their own actions as less morally wrong and less negative than those in which other people lied to or emotionally harmed them. Furthermore, people judge those actions that happened further in the past to be more morally wrong than those that happened more recently. Finally, for periods of the past when they believed that they were very different people than they are now, participants judge their actions to be more morally wrong and more negative than those actions from periods of their pasts when they believed that they were very similar to who they are now. The authors discuss these findings in relation to theories about the function of autobiographical memory and moral cognition in constructing and perceiving the self over time.

Thursday, June 8, 2017

How much information to sample before making a decision? It's a matter of psychological distance

How much information to sample before making a decision? It's a matter of psychological distance. By Vered Halamish & Nira Liberman
Journal of Experimental Social Psychology, July 2017, Pages 111–116
http://www.sciencedirect.com/science/article/pii/S0022103116307089

Abstract:: When facing a decision, people look for relevant information to guide their choice. But how much information do they seek to obtain? Based on Construal Level Theory, we predicted that psychological distance from a decision would make participants seek more information prior to making a decision. Five experiments supported this prediction. When facing a decision between two decks of cards or two urns with marbles, participants preferred to sample more units of information for the purpose of making this decision in the distant future or for a friend (vs. in the near future or for themselves). These results suggest that expanding the scope of sampled experience is yet another way by which psychological distance affects decision making.

The Benefits of Forced Experimentation: Striking Evidence from the London Underground Network

The Benefits of Forced Experimentation: Striking Evidence from the London Underground Network. By Ferdinand Rauch, Shaun Larcom, Tim Willems
https://www.economics.ox.ac.uk/Department-of-Economics-Discussion-Paper-Series/the-benefits-of-forced-experimentation-striking-evidence-from-the-london-underground-network

Abstract: We estimate that a significant fraction of commuters on the London underground do not travel their optimal route. Consequently, a tube strike (which forced many commuters to experiment with new routes) taught commuters about the existence of superior journeys -- bringing about lasting changes in behaviour. This effect is stronger for commuters who live in areas where the tube map is more distorted, thereby pointing towards the importance of informational imperfections. We argue that the information produced by the strike improved network-efficiency. Search costs are unlikely to explain the suboptimal behaviour. Instead, individuals seem to under-experiment in normal times, as a result of which constraints can be welfare-improving.

Part of the series Department of Economics Discussion Paper Series (Ref: 755 )

JEL Reference: D83,L91,R41

Keywords: Experimentation, Learning, Optimization, Rationality, Search

Need for uniqueness motivates conspiracy beliefs

Imhoff, R., and Lamberty, P. K. (2017) Too special to be duped: Need for uniqueness motivates conspiracy beliefs. Eur. J. Soc. Psychol., doi: 10.1002/ejsp.2265
http://onlinelibrary.wiley.com/doi/10.1002/ejsp.2265/full

Abstract: Adding to the growing literature on the antecedents of conspiracy beliefs, this paper argues that a small part in motivating the endorsement of such seemingly irrational beliefs is the desire to stick out from the crowd, the need for uniqueness. Across three studies, we establish a modest but robust association between the self-attributed need for uniqueness and a general conspirational mindset (conspiracy mentality) as well as the endorsement of specific conspiracy beliefs. Following up on previous findings that people high in need for uniqueness resist majority and yield to minority influence, Study 3 experimentally shows that a fictitious conspiracy theory received more support by people high in conspiracy mentality when this theory was said to be supported by only a minority (vs. majority) of survey respondents. Together, these findings support the notion that conspiracy beliefs can be adopted as a means to attain a sense of uniqueness.

Wednesday, June 7, 2017

Perceived social presence reduces fact-checking

Perceived social presence reduces fact-checking. By Youjung Jun, Rachel Meng, and Gita Venkataramani Johar
Proceedings of the National Academy of Sciences    vol. 114 no. 23
DOI 10.1073/pnas.1700175114, http://www.pnas.org/content/114/23/5976.abstract

Significance: The dissemination of unverified content (e.g., “fake” news) is a societal problem with influence that can acquire tremendous reach when propagated through social networks. This article examines how evaluating information in a social context affects fact-checking behavior. Across eight experiments, people fact-checked less often when they evaluated claims in a collective (e.g., group or social media) compared with an individual setting. Inducing momentary vigilance increased the rate of fact-checking. These findings advance our understanding of whether and when people scrutinize information in social environments. In an era of rapid information diffusion, identifying the conditions under which people are less likely to verify the content that they consume is both conceptually important and practically relevant.

Abstract: Today’s media landscape affords people access to richer information than ever before, with many individuals opting to consume content through social channels rather than traditional news sources. Although people frequent social platforms for a variety of reasons, we understand little about the consequences of encountering new information in these contexts, particularly with respect to how content is scrutinized. This research tests how perceiving the presence of others (as on social media platforms) affects the way that individuals evaluate information—in particular, the extent to which they verify ambiguous claims. Eight experiments using incentivized real effort tasks found that people are less likely to fact-check statements when they feel that they are evaluating them in the presence of others compared with when they are evaluating them alone. Inducing vigilance immediately before evaluation increased fact-checking under social settings.

Call My Rep! How Unions Overcame the Free-Rider Problem

Murphy, Richard John: Call My Rep! How Unions Overcame the Free-Rider Problem (March 01, 2017). CESifo Working Paper Series No. 6362. Available at SSRN: https://ssrn.com/abstract=2941381

Abstract: This paper proposes an explanation of why union membership has been increasing in some occupations, despite the opportunity to freeride on traditional union benefits. I model membership as legal insurance whose demand increases with the perceived risk of allegations. Using media reports on allegations against teachers as shocks to perceived risk, I find for every five reports occurring in a region, teachers are 2.5 percentage points more likely to be members in the subsequent year. These effects are larger when teachers share characteristics with the news story and explain 45 percent of the growth in teacher union membership since 1992.

Keywords: unions, teachers, media, insurance

JEL Classification: J510, J450, J320

Increase in own state's minimum wage increases frequency with which low-wage workers commute out of the state

Cross-state differences in the minimum wage and out-of-state commuting by low-wage workers. By Terra McKinnish
Regional Science and Urban Economics, Volume 64, May 2017, Pages 137–147
https://doi.org/10.1016/j.regsciurbeco.2017.02.006
Highlights

•  The federal minimum wage hike compressed cross-border minimum wage differentials.
•  Low wage workers responded by commuting out of states that increased their minimum wage.
•  Results are consistent with a disemployment effect of minimum wage increases.

Abstract: The 2009 federal minimum wage increase, which compressed cross-state differences in the minimum wage, is used to investigate the claim that low-wage workers are attracted to commute out of state to neighboring states that have higher minimum wages. The analysis focuses on Public Use Microdata Areas (PUMAs) that experience commuting flows with one or more neighboring state. A difference-in-differences-in-differences model compares PUMAs that experienced a sizeable increase or decrease in their cross-border minimum wage differential to those that experience smaller change in the cross-border differential. Out-of-state commuting of low wage workers (less than 10 dollars an hour) is then compared to that of moderate wage workers (10–13 dollars an hour). The results suggest that an increase in own state's minimum wage, relative to neighbor's, increases the frequency with which low-wage workers commute out of the state. The analysis is replicated on the subset of PUMAs that experience commuting flows with more than one neighboring state, so that the estimates are identified entirely within PUMA. As a whole, the results suggest that low-wage workers tend to commute away from minimum wage increases rather than towards them.

Tuesday, June 6, 2017

Rethinking the Benefits of Youth Employment Programs: The Heterogeneous Effects of Summer Jobs

Rethinking the Benefits of Youth Employment Programs: The Heterogeneous Effects of Summer Jobs
Jonathan Davis & Sara Heller
NBER Working Paper, May 2017
http://www.nber.org/papers/w23443

Abstract: his paper reports the results of two randomized field experiments, each offering different populations of youth a supported summer job in Chicago. In both experiments, the program dramatically reduces violent-crime arrests, even after the summer. It does so without improving employment, schooling, or other types of crime; if anything, property crime increases over 2-3 post-program years. To explore mechanisms, we implement a machine learning method that predicts treatment heterogeneity using observables. The method identifies a subgroup of youth with positive employment impacts, whose characteristics differ from the disconnected youth served in most employment programs. We find that employment benefiters commit more property crime than their control counterparts, and non-benefiters also show a decline in violent crime. These results do not seem consistent with typical theory about improved human capital and better labor market opportunities creating a higher opportunity cost of crime, or even with the idea that these programs just keep youth busy. We discuss several alternative mechanisms, concluding that brief youth employment programs can generate substantively important behavioral change, but for different outcomes, different youth, and different reasons than those most often considered in the literature.

Monday, June 5, 2017

Increase in deployment & combat injuries for white and Hispanic soldiers relative to black ones & for soldiers from high-income neighborhoods relative to those from low-income ones

Who Will Fight? The All-Volunteer Army after 9/11. By Susan Payne Carter, Alexander Smith & Carl Wojtaszek
American Economic Review, May 2017, Pages 415-419
https://www.aeaweb.org/articles?id=10.1257/aer.p20171082

Abstract: Who fought the War on Terror? We find that as the wars in Iraq and Afghanistan progressed, there was an increase in the fraction of active-duty Army enlistees who were white or from high-income neighborhoods and that these two groups selected combat occupations more often. Among men, we find an increase in deployment and combat injuries for white and Hispanic soldiers relative to black soldiers and for soldiers from high-income neighborhoods relative to those from low-income neighborhoods. This finding suggests that an all-volunteer force does not compel a disproportionate number of non-white and low socio-economic men to fight America's wars.

IV.  Discussion
Today's all-volunteer force represents a diverse group of individuals serving for both patriotic and economic reasons. For those with fewer economic opportunities, a steady job may be the deciding factor in their enlistment decision; while for those with more outside options, wartime service may shape their deci- sion. Concerns over equity could arise under the  all-volunteer system if these enlistment motivations are differentially distributed across demographic groups. While we cannot uncover the distribution of these motivations, we can observe which groups bear the burden of war. Were the first sustained conflicts of the AVF.Iraq and Afghanistan..poor man.s fights.? To the contrary, during this time period it does not appear that there was an undue burden placed on blacks or individuals from low-income neighborhoods. The percentages of black and low-income enlistees decreased as fighting intensified, with these trends stopping when outside labor market opportunities diminished during the Great Recession and combat risk decreased. These trends were the same for men and women, although black women continued to be over-represented in the Army relative to the general population. Furthermore, black and low-income enlisted men were less likely than their white and high-income peers to be deployed or injured in combat. These differences are driven primarily by the military occupation an individual enters: black and low-income men were less likely to choose combat-intensive occupations than their white and high-income peers with the same eligibility.