The Chronicle of Higher Education reports: Booming States Lure Academics From Those With Financial Woes (un-gated version here for five days).
Texas, anyone?
Wednesday, October 29, 2008
Tuesday, October 28, 2008
Auctions for seats at sporting events
The Jets Gross $16 Million in a Seat-License Auction
The days when sports teams sold tickets at below market clearing prices to fans who waited on long lines are fading fast.
The days when sports teams sold tickets at below market clearing prices to fans who waited on long lines are fading fast.
NBER working papers on design of partnerships and auctions
Two new NBER papers touch on market design: Hilt and O'Banion discuss the introduction of limited partnerships, and Bajari and Yeo look at how changes in the rules of FCC spectrum auctions changed bidding behavior.
The Limited Partnership in New York, 1822-1853: Partnerships without Kinship
by Eric Hilt, Katharine E. O'Banion - #14412 (DAE LE)
Abstract:
In 1822, New York became the first common-law state to authorize the formation of limited partnerships, and over the ensuing decades, many other states followed. Most prior research has suggested that these statutes were utilized only rarely, but little is known about their
effects. Using newly collected data, this paper analyzes the use of the limited partnership in nineteenth-century New York City. We find that the limited partnership form was adopted by a surprising number of firms, and that limited partnerships had more capital, failed at lower rates, and were less likely to be formed on the basis of kinship ties, compared to ordinary partnerships. The latter differences were not simply due to selection: even though the merchants who invested in limited partnerships were a wealthy and successful elite, their own ordinary partnerships were quite different from their limited partnerships. The results suggest that the limited partnership facilitated investments outside kinship networks, and into the hands of talented young merchants.
http://papers.nber.org/papers/W14412
Auction Design and Tacit Collusion in FCC Spectrum Auctions by Patrick Bajari, Jungwon Yeo - #14441 (IO)
Abstract:
The Federal Communications Commission (FCC) has used auctions to award spectrum since 1994. During this time period, the FCC has experimented with a variety of auctions rules including click box bidding and anonymous bidding. These rule changes make the actions of bidders less visible during the auction and also limit the set of bids which can be submitted by a bidder during a particular round. Economic theory suggests that tacit collusion may be more difficult as a result. We examine this proposition using data from 4 auctions: the PCS C Block, Auction 35, the Advanced Wireless Service auction and the 700 Mhz auction. We examine the frequency of jump bids, retaliatory bids and straightforward bids across these auctions. While this simple descriptive exercise has a number of limitations, the data suggests that these rule changes did limit firms' ability to tacitly collude.
http://papers.nber.org/papers/W14441
The Limited Partnership in New York, 1822-1853: Partnerships without Kinship
by Eric Hilt, Katharine E. O'Banion - #14412 (DAE LE)
Abstract:
In 1822, New York became the first common-law state to authorize the formation of limited partnerships, and over the ensuing decades, many other states followed. Most prior research has suggested that these statutes were utilized only rarely, but little is known about their
effects. Using newly collected data, this paper analyzes the use of the limited partnership in nineteenth-century New York City. We find that the limited partnership form was adopted by a surprising number of firms, and that limited partnerships had more capital, failed at lower rates, and were less likely to be formed on the basis of kinship ties, compared to ordinary partnerships. The latter differences were not simply due to selection: even though the merchants who invested in limited partnerships were a wealthy and successful elite, their own ordinary partnerships were quite different from their limited partnerships. The results suggest that the limited partnership facilitated investments outside kinship networks, and into the hands of talented young merchants.
http://papers.nber.org/papers/W14412
Auction Design and Tacit Collusion in FCC Spectrum Auctions by Patrick Bajari, Jungwon Yeo - #14441 (IO)
Abstract:
The Federal Communications Commission (FCC) has used auctions to award spectrum since 1994. During this time period, the FCC has experimented with a variety of auctions rules including click box bidding and anonymous bidding. These rule changes make the actions of bidders less visible during the auction and also limit the set of bids which can be submitted by a bidder during a particular round. Economic theory suggests that tacit collusion may be more difficult as a result. We examine this proposition using data from 4 auctions: the PCS C Block, Auction 35, the Advanced Wireless Service auction and the 700 Mhz auction. We examine the frequency of jump bids, retaliatory bids and straightforward bids across these auctions. While this simple descriptive exercise has a number of limitations, the data suggests that these rule changes did limit firms' ability to tacitly collude.
http://papers.nber.org/papers/W14441
Monday, October 27, 2008
Slavery
Court Finds Niger Guilty on Slavery Charge
"A West African regional court found the government of Niger guilty on Monday of failing to protect a young woman who was sold into slavery at the age of 12. ...
"Slavery is outlawed in Niger and the rest of Africa, but it persists in pockets of Niger, Mali and Mauritania. Ms. Mani’s experience was typical of the practice. Her impoverished family sold her to a farmer named Souleymane Naroua when she was 12 for about $500."
"A West African regional court found the government of Niger guilty on Monday of failing to protect a young woman who was sold into slavery at the age of 12. ...
"Slavery is outlawed in Niger and the rest of Africa, but it persists in pockets of Niger, Mali and Mauritania. Ms. Mani’s experience was typical of the practice. Her impoverished family sold her to a farmer named Souleymane Naroua when she was 12 for about $500."
Sunday, October 26, 2008
Business networking thrives in a recession
Business networking is countercyclical: the Financial Times reports
"Professional networks such as LinkedIn and Xing, a European rival, have surged in popularity amid the economic crisis, as people look for advice and jobs from their online contacts."
"Online recruitment sites, such as Monster, Careerbuilder and Yahoo’s HotJobs, saw visitors leap 42 per cent in the same period.
“Financial services is one of our fastest-growing sectors,” said Mr Nye, with activity – frequency and duration of visits – up 50 per cent in August and September.
“Clearly people are joining as they are thinking about their employment situation. People are also getting advice from their network, reference-checking vendors or searching for candidates to fill positions.”
Xing now hosts a 2,000-strong group for “Lehman Brothers Alumni”.
Lars Hinrichs, chairman and chief executive of Xing, said: “We see the crisis as very beneficial for business networks because you are spending more time on your career than on luxuries.”
"Professional networks such as LinkedIn and Xing, a European rival, have surged in popularity amid the economic crisis, as people look for advice and jobs from their online contacts."
"Online recruitment sites, such as Monster, Careerbuilder and Yahoo’s HotJobs, saw visitors leap 42 per cent in the same period.
“Financial services is one of our fastest-growing sectors,” said Mr Nye, with activity – frequency and duration of visits – up 50 per cent in August and September.
“Clearly people are joining as they are thinking about their employment situation. People are also getting advice from their network, reference-checking vendors or searching for candidates to fill positions.”
Xing now hosts a 2,000-strong group for “Lehman Brothers Alumni”.
Lars Hinrichs, chairman and chief executive of Xing, said: “We see the crisis as very beneficial for business networks because you are spending more time on your career than on luxuries.”
Saturday, October 25, 2008
Property rights
A lack of well defined property rights can hamper efficiency. A case in point: Christians Feud Over Church of Holy Sepulcher
"The Israeli government has long wanted to build a fire exit in the church, which regularly fills with thousands of pilgrims and has only one main door, but the plan is on hold because the sects cannot agree where the exit will be built. In another example, a ladder placed on a ledge over the entrance sometime in the 19th century has remained there ever since because of a dispute over who has the authority to take it down."
"The Israeli government has long wanted to build a fire exit in the church, which regularly fills with thousands of pilgrims and has only one main door, but the plan is on hold because the sects cannot agree where the exit will be built. In another example, a ladder placed on a ledge over the entrance sometime in the 19th century has remained there ever since because of a dispute over who has the authority to take it down."
Animal rights and food production in CA--Proposition 2
Animal rights, and what kinds of food can be sold, continue to be an issue in California (and not just in connection with the 1998 referendum banning the sale of horse meat). Here are two stories about Proposition 2, on this year's ballot:
A California Ballot Measure Offers Rights for Farm Animals , and
The Barnyard Strategist
"Proposition 2, co-sponsored by the Humane Society and Farm Sanctuary, the biggest farm-animal-rights group in the United States, focuses on what are considered the worst animal-confinement systems in factory farms. The ballot initiative, which voters will decide on Nov. 4, requires that by 2015 farm animals be able to stand up, lie down, turn around and fully extend their limbs. In effect that translates into a ban on the two-foot-wide crates that tightly confine pregnant pigs and calves raised for veal — a space so small that they can’t turn around. And it would eliminate so-called battery cages where four or more hens share a space about the size of a file drawer."
Some years ago, New Zealand's Animal Welfare Act of 1999 gave considerable deference to the rights of "Non-Human Hominids," such as chimps and other 'great apes'. I recall Ted Bergstrom remarking at the time that there weren't many chimps in New Zealand, and that New Zealanders could have made more of a statement by giving rights to sheep. It looks like Californians are going to have an option like that at the polls next week.
A California Ballot Measure Offers Rights for Farm Animals , and
The Barnyard Strategist
"Proposition 2, co-sponsored by the Humane Society and Farm Sanctuary, the biggest farm-animal-rights group in the United States, focuses on what are considered the worst animal-confinement systems in factory farms. The ballot initiative, which voters will decide on Nov. 4, requires that by 2015 farm animals be able to stand up, lie down, turn around and fully extend their limbs. In effect that translates into a ban on the two-foot-wide crates that tightly confine pregnant pigs and calves raised for veal — a space so small that they can’t turn around. And it would eliminate so-called battery cages where four or more hens share a space about the size of a file drawer."
Some years ago, New Zealand's Animal Welfare Act of 1999 gave considerable deference to the rights of "Non-Human Hominids," such as chimps and other 'great apes'. I recall Ted Bergstrom remarking at the time that there weren't many chimps in New Zealand, and that New Zealanders could have made more of a statement by giving rights to sheep. It looks like Californians are going to have an option like that at the polls next week.
Market for coffee
I wonder what a recession will do to high end coffee shops. Will Americans back away from $4.00 cappuchinos? Or will those seem like a still-affordable luxury--just as luxurious (in their own way) as a Rolls Royce, but cheaper... The NY Times reports on high end coffee shops in NYC: Bean Town
Friday, October 24, 2008
Assisted suicide and "death tourism"
The Times of London follows the Swiss suicide ‘clinic’ Dignitas
"The Crown Prosecution Service is deciding whether to press charges against the parents of Daniel James after it learnt that they had accompanied him to Dignitas, where he ended his life last month. The case has provoked sympathy and condemnation in almost equal measure because, unlike most previous cases, Mr James was not terminally ill. ..."
"Switzerland allows assisted suicide by a nondoctor provided that it is not done for profit. That is the most liberal ruling in Europe and its principles were set out as early as 1918: “In modern penal law suicide is not a crime . . . aiding and abetting suicide can themselves be inspired by altruistic motives.”Even critics of Dignitas such as Andreas Brunner, the state prosecutor in Zurich, accept the principle. “But there should be tighter controls, regulating the quality of the help offered,” Mr Brunner argued. “And more transparency when it comes to individual cases, to finances and to the organisation itself.”The real concern is not the practice of helping people to die – one Swiss organisation, Exit, has helped more than 700 Swiss citizens and has escaped most political criticism – but the tarnished image that comes with being seen as the suicide capital of Europe. Opponents call it “death tourism”."
An accompanying story explains Why I prescribe drugs for suicide, by Dignitas doctor
"The Crown Prosecution Service is deciding whether to press charges against the parents of Daniel James after it learnt that they had accompanied him to Dignitas, where he ended his life last month. The case has provoked sympathy and condemnation in almost equal measure because, unlike most previous cases, Mr James was not terminally ill. ..."
"Switzerland allows assisted suicide by a nondoctor provided that it is not done for profit. That is the most liberal ruling in Europe and its principles were set out as early as 1918: “In modern penal law suicide is not a crime . . . aiding and abetting suicide can themselves be inspired by altruistic motives.”Even critics of Dignitas such as Andreas Brunner, the state prosecutor in Zurich, accept the principle. “But there should be tighter controls, regulating the quality of the help offered,” Mr Brunner argued. “And more transparency when it comes to individual cases, to finances and to the organisation itself.”The real concern is not the practice of helping people to die – one Swiss organisation, Exit, has helped more than 700 Swiss citizens and has escaped most political criticism – but the tarnished image that comes with being seen as the suicide capital of Europe. Opponents call it “death tourism”."
An accompanying story explains Why I prescribe drugs for suicide, by Dignitas doctor
Britain's National Health Service and private medicine
Up until now, Britain's NHS has insisted that patients either accept the NHS's formulary which does not cover some expensive drugs, or give up all access to NHS care; i.e. patients who pay for some of their own drugs have been required to pay for all of their drugs and treatment, even those that would have been free to other British citizens. Now, the Telegraph reports:
"NHS patients will be allowed to pay for private 'top up' care: Patients will be allowed to pay privately for drugs and still receive NHS treatment under plans to be announced by the Government in the next fortnight. "
"Under current rules, hospitals may withdraw treatment from patients who want to use their own money to buy drugs not available on the health service.
But Alan Johnson, the Health Secretary, is preparing to announce that so-called top-up payments will be allowed. "
...
"Concerns have been raised that such a move would create a two-tier health service where wealthy patients buy life saving treatments denied to those who cannot afford them.
...The Government ordered a review into top-up payments earlier in the year. There has been a public outcry after some NHS hospitals refused to treat those paying for their own drugs or other treatments."
"NHS patients will be allowed to pay for private 'top up' care: Patients will be allowed to pay privately for drugs and still receive NHS treatment under plans to be announced by the Government in the next fortnight. "
"Under current rules, hospitals may withdraw treatment from patients who want to use their own money to buy drugs not available on the health service.
But Alan Johnson, the Health Secretary, is preparing to announce that so-called top-up payments will be allowed. "
...
"Concerns have been raised that such a move would create a two-tier health service where wealthy patients buy life saving treatments denied to those who cannot afford them.
...The Government ordered a review into top-up payments earlier in the year. There has been a public outcry after some NHS hospitals refused to treat those paying for their own drugs or other treatments."
Freakonomics on legalizing prostitution
Should Prostitution Be Decriminalized?, a thoughtful post on the subject at Freakonomics.
eBay hasn't replaced garage sales
The credit crunch is bringing them back: Garage Sales on Rise With Economic Downturn
Debt and fairness
Margaret Atwood points out that credit and debt are not only economically important but highly emotive, and that solutions to the credit crisis will also involve deeply held beliefs about fairness:
A Matter of Life and Debt
Not so many centuries ago, debt transactions were considered repugnant in many parts of the world (and are still so considered in parts of the Islamic world).
A Matter of Life and Debt
Not so many centuries ago, debt transactions were considered repugnant in many parts of the world (and are still so considered in parts of the Islamic world).
Kidney Exchange on Grey's Anatomy
Kidney exchange makes it into fiction on the Oct.23 episode of Grey's Anatomy, even more complicated than in real life (or at least complicated in different ways).
"Miranda pulls all the surgical residents and interns for a "domino surgery," -- 12 kidney transplants in six O.R.s at the same time. "This whole surgery is a giant house of cards. If we lose one donor, we lose them all," Miranda advises the team. Complications arise with one young man whose estranged father is paying him $10,000 to donate his kidney. Izzie complains to Miranda, but they all agree to turn a blind eye so that the surgery -- which is making national news -- can go on. The surgeries are canceled when a female donor learns that her husband's donor is also his lover of three years and decides not to donate her kidney. Miranda reminds her that five other peoples' lives are on the line as well and the woman agrees to go ahead with the surgery. "
{I'm guessing they mean 6 transplants in 12 O.R.s, 6 for the nephrectomies and 6 for the transplants, but I didn't see the show...A.R.}
HT to Greg Barron
"Miranda pulls all the surgical residents and interns for a "domino surgery," -- 12 kidney transplants in six O.R.s at the same time. "This whole surgery is a giant house of cards. If we lose one donor, we lose them all," Miranda advises the team. Complications arise with one young man whose estranged father is paying him $10,000 to donate his kidney. Izzie complains to Miranda, but they all agree to turn a blind eye so that the surgery -- which is making national news -- can go on. The surgeries are canceled when a female donor learns that her husband's donor is also his lover of three years and decides not to donate her kidney. Miranda reminds her that five other peoples' lives are on the line as well and the woman agrees to go ahead with the surgery. "
{I'm guessing they mean 6 transplants in 12 O.R.s, 6 for the nephrectomies and 6 for the transplants, but I didn't see the show...A.R.}
HT to Greg Barron
Thursday, October 23, 2008
Housemate match
A matching service run by the Atlanta JCC: Housemate Match
"Housemate Match (HMM) is a unique, nationally recognized, home sharing program that matches mature adult homeowners who have extra room in their homes with adults (tenants) seeking a roommate in a beautiful and safe place to live in the Atlanta area.
HMM provides rooms to rent for those who prefer to share a home rather than living alone and for those who choose to remain in their home and age in place.
International friends are welcome. "
"Housemate Match (HMM) is a unique, nationally recognized, home sharing program that matches mature adult homeowners who have extra room in their homes with adults (tenants) seeking a roommate in a beautiful and safe place to live in the Atlanta area.
HMM provides rooms to rent for those who prefer to share a home rather than living alone and for those who choose to remain in their home and age in place.
International friends are welcome. "
Pawn shops--high interest loans for the credit challenged
The Telegraph reports on the credit crisis in England: Financial crisis: hard-up consumers are selling jewellery for cash
Pawnbrokers make loans with goods as collateral, and mostly items are redeemed.
"Pawnbrokers are distinct from high street buy-back shops such as Cash Converters, where a customer will sell an item with the option to buy it back 28 days later. If the customer doesn't repurchase the item, it goes into the shop to be sold (items are not usually limited to gold and jewellery; they can be electrical goods, for example).
Pawnbrokers are regulated alongside banks and other lenders by the Consumer Credit Act 1974. Borrowing through a pawnbroker may not be suitable for everyone and high interest rates mean it is not a long-term solution, as they themselves acknowledge, but sometimes it can resolve short-term cash flow problems. "
Pawnbrokers make loans with goods as collateral, and mostly items are redeemed.
"Pawnbrokers are distinct from high street buy-back shops such as Cash Converters, where a customer will sell an item with the option to buy it back 28 days later. If the customer doesn't repurchase the item, it goes into the shop to be sold (items are not usually limited to gold and jewellery; they can be electrical goods, for example).
Pawnbrokers are regulated alongside banks and other lenders by the Consumer Credit Act 1974. Borrowing through a pawnbroker may not be suitable for everyone and high interest rates mean it is not a long-term solution, as they themselves acknowledge, but sometimes it can resolve short-term cash flow problems. "
Congestion in the supply chain for new doctors
A new doctor needs not only a place in medical school, but also some clinical rotations in hospitals while still a medical student, and a residency position after graduation. New medical schools, and medical schools that wish to increase their class size, need to find these for their students, which is one of the constraints on increasing the size of US medical school output. The Chronicle of Higher Education describes the situation in Arizona: Shortage of Training Slots Threatens to Stall Influx of New Doctors. (An ungated version will be available for five days at http://chronicle.com/temp/email2.php?id=hVntG8hqVPcppSXRz6qmdkfdQtSZNB5V )
Wednesday, October 22, 2008
Britain votes to allow human-animal hybrids
On the repugnant transaction front, the Telegraph reports that after considerable debate, MPs vote to allow human-animal hybrids
"Following a landmark Commons vote, Britain will become one of a handful of countries in the world to encourage ground-breaking research by implanting human cells into an egg taken from an animal, usually a rabbit.
Pro-life MPs warned that the step could lead to the creation of half-human, half-ape "humanzees" or "minotaurs" - a claim denied by the Department of Health.
Hybrids - called "admixed embryos" by the scientific community - are banned in at least 21 countries, but scientists believe that they could be used to find cures for dozens of serious conditions, from heart disease to dementia.
MPs voted overwhelmingly in favour of the Human Fertilisation and Embryology Bill after being told that it could revolutionise the lives of hundreds of thousands of people, bringing to a close one of the most bitter Parliamentary wrangles of recent years. "
"Following a landmark Commons vote, Britain will become one of a handful of countries in the world to encourage ground-breaking research by implanting human cells into an egg taken from an animal, usually a rabbit.
Pro-life MPs warned that the step could lead to the creation of half-human, half-ape "humanzees" or "minotaurs" - a claim denied by the Department of Health.
Hybrids - called "admixed embryos" by the scientific community - are banned in at least 21 countries, but scientists believe that they could be used to find cures for dozens of serious conditions, from heart disease to dementia.
MPs voted overwhelmingly in favour of the Human Fertilisation and Embryology Bill after being told that it could revolutionise the lives of hundreds of thousands of people, bringing to a close one of the most bitter Parliamentary wrangles of recent years. "
Emergency Economic Stabilization Act of 2008 --market mechanisms
The bailout bill is pretty terse on the details of market design: here's the relevant section of H.R.1424, part b,SEC. 113. MINIMIZATION OF LONG-TERM COSTS AND MAXIMIZATION OF BENEFITS FOR TAXPAYERS
"(b) Use of Market Mechanisms- In making purchases under this Act , the Secretary shall--
(1) make such purchases at the lowest price that the Secretary determines to be consistent with the purposes of this Act ; and
(2) maximize the efficiency of the use of taxpayer resources by using market mechanisms, including auctions or reverse auctions, where appropriate.
(c) Direct Purchases- If the Secretary determines that use of a market mechanism under subsection (b) is not feasible or appropriate, and the purposes of the Act are best met through direct purchases from an individual financial institution, the Secretary shall pursue additional measures to ensure that prices paid for assets are reasonable and reflect the underlying value of the asset."
HT to Guhan Subramanian
"(b) Use of Market Mechanisms- In making purchases under this Act , the Secretary shall--
(1) make such purchases at the lowest price that the Secretary determines to be consistent with the purposes of this Act ; and
(2) maximize the efficiency of the use of taxpayer resources by using market mechanisms, including auctions or reverse auctions, where appropriate.
(c) Direct Purchases- If the Secretary determines that use of a market mechanism under subsection (b) is not feasible or appropriate, and the purposes of the Act are best met through direct purchases from an individual financial institution, the Secretary shall pursue additional measures to ensure that prices paid for assets are reasonable and reflect the underlying value of the asset."
HT to Guhan Subramanian
Tuesday, October 21, 2008
Market for books in translation
The Frankfurt book fair sounds like it's a lot of fun for publishing professionals, but it also sounds like the market for books to translate hasn't been changed much by technology: Wheeling and Dealing and Finding Books to Translate Into Dutch. Much of the information seems to be passed between people who know each other.
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