Link Banana

Tyler Cowen thinks that influential people have more conventional opinions. While I find his theories interesting, I have to wonder if this isn’t a simple selection bias: people become and stay influential because their view are widely held. I also tend to think that  “conventional wisdom” has more merit than the whole discussion gives it.

(via kottke)

Apparently, economists think there are better and worse ways for us to spend our way out of the recession. Some of their most interesting suggestions:

Tyler Cowen, George Mason University: In my view, fixing the banking sector is more important than getting the stimulus right. So if you can afford to lose the money, go to a large bank (more likely to be insolvent), find their most overpriced service, and buy as much of it as you can. That way you are doing your part to recapitalize our banking system.

Ethan Harris, Barclays Capital: Get a haircut. It is a purely domestically produced service with extremely high labor content. This means no drain in spending power out of the country: it is “Buy American” without violating any trade agreements.

Robert Shiller, Yale University: I suggest using it to give an extra-generous tip to taxi drivers. They talk to lots of people, especially active business-oriented people, and they will be feeling more upbeat, sensing that some people are feeling flush, and they will communicate this feeling to numerous people, thereby helping restore confidence.

(via Ideas)

Specifically: Why does India have so few Olympic medals? Tyler Cowen and others speculate. I do believe that cricket remains my favorite explanation.

Tyler Cowen (he of Marginal Revolution fame) thinks you should throw out less-than-great books you’ve read.

If you donate the otherwise-trashed book somewhere, someone might read it. OK, maybe that person will read one more book in life but more likely that book will substitute for that person reading some other book instead.

…A lot of books don’t make the cut of “above average to those readers they will attract” and of course since you’ve spent some time with the volume you ought to be in a position to know. (But note the calculation is tricky. Sometimes a very bad book can be useful because it might appeal to “bad” readers and lure them away from even worse books. Please make all the appropriate calculations here.)

The worst thing you can do is to give such a book to a friend or family member. You are tempting them, but with mediocrity.

So all you altruists out there, ready your trash can and exercise your elbow. See if you can toss a book into the bin with one fell swoop from across the room. The love of humanity demands it.

Why it makes sense, according to Mark Gimein:

But you can also see how this works intuitively if you just consider that with a lot at stake in getting it right in one shot, it’s the women who are confident that they are holding a strong hand who are likely to hold out and wait for the perfect prospect.

This is how you come to the Eligible-Bachelor Paradox, which is no longer so paradoxical. The pool of appealing men shrinks as many are married off and taken out of the game, leaving a disproportionate number of men who are notably imperfect (perhaps they are short, socially awkward, underemployed). And at the same time, you get a pool of women weighted toward the attractive, desirable “strong bidders.”

Where have all the most appealing men gone? Married young, most of them—and sometimes to women whose most salient characteristic was not their beauty, or passion, or intellect, but their decisiveness.

Also of note, what Marginal Revolution’s Tyler Cowen had to say about it. Hint, he begins: “I don’t quite buy it.”