Monthly Archives: May 2012

Blah Blah Blah


From here. This chart is the usual VoteView scatter plot with one more bit of data added.  For those who haven’t been following along each point is a member of congress, and the X axis shows how economically conservative the member is (e.g. how much they prefer legislation that servers large economic entities v.s. small ones); and the vertical economic axis is their preferences on civil rights issues, higher is (roughly) more socially liberal.  The red points are the Republicans and the Democrats are blue.  As you can see there are few, if any centrists, and the two parties are totally polarized.

The added datum is the “grade level.”  It’s based on a somewhat silly measurement tool that used on text to estimate the grade in school the reader would need to have achieved to read that text.  In this case the text is the member’s statements in the congressional record.

Honestly I don’t know that I’d draw any conclusions from this, but don’t let me stop you from that pleasure.

Little Pirates

This chart is a nice simple illustration as to why an investment advisor might be drawn into pitching a higher risk portfolio.  All you need to do is offer him a bonus if the portfolio performs particularly well.  This creates an incentive for him to offer you investments drawn from the blue portfolio v.s. the green portfolio.

This chart is lifted from this provocative paper: “Low Risk Stocks Outperform within All Observable Markets.”  It’s role in the paper is to argue that this incentive, the tendency of advisors to prefer the blue to the green portfolios, leads to high prices for the blue stocks.  Thus, they become overvalued and lousy investments.

What I find interesting about that is how complementary it is to my theory of Capitalism as the direct decedent of Piracy.  E.g. here we have agency effects creating an incentive for the investment advisor to put his client into more volatile (riskier?) investments, but through the wonders of agency (aka limited liability) he bears no downside for that.

ht: Bob Wyman.

Lists

Someone I admire once lead me to subscribing to the Huffington Post.  What a mistake.  But I did learn something.  If you want to write for the Huffington post the headline of your posting can be, or probably is, generated by a simple grammar.  Usually these involve a celebrity, say scientists or a reality TV star, and a list of ten ways to achive some desire.

Lists are fun.  And taxonomy is easier than real work, or at least it seems that way when you start.  And simple writing guides often suggest the list as possible frame to adopt.

There must be hundreds of blogs and websites that specialize in lists.  Bookmarking sites, obviously, fall into this bucket.  But there ought to be a list of great lists.  I have maybe a half dozen people who I follow on various bookmarking sites, because they list such interesting stuff.  This all comes to minded  because Andrew Gelman draws our attention to this delightful blog of lists.  For example here he has a list of fake books  Dickens commissioned to populate his study’s book shelves.  And this amazing list of foods Twain dreamed of while traveling.  The valuable information that pratfall > kiss > baby > kitten > dog > landscape; if you wish to write box office hit.

So I think I need a list of lists of lists; and now I have at least a first entry.

Call Your Mother

One of the standards battles I find most fascinating is how we allocate time.  Institutions battle for a share: work, good works, civic life, hobbies, study, family, exercise, networking…  The activities that demand rendezvous with others, what we might call social these days, demand coordinated points of rendezvous.    I like that one of the arguments for the 40 hour work week was that it would enable civic engagement.  On the battle field of time religious institutions have lost a lot of ground over the last century, while commercial institutions have successfully grabbed most of that real estate.  I can recall a time when the only thing that could be forgiven for keeping the Sabbath was the occasional pharmacy.

I was reminded of this by an item about an attempt to regulate how people spend their time.  In this case a ban on cell phone use in cars.  What leapt out at me – a few sacred institutions managed to get an exception to the ban:  “There are a few exceptions, however, including emergency phone calls, and calls to parents, children or a spouse.”  So in this case family won.  But, clearly this is an anti-business regulatory overreach; do I not need to call my subordinates!

Here some other links:

  • Fun interactive chart from the NYTimes.
  • That is based on the Census’s Time Use survey.
  • An  examples of what can be done with that data which in this case consisted of  “one record per survey participant which contains information about the person (sex, age, race, employment status, etc.) along with the amount of time that the person spent doing a particular task (ex. washing dishes, watching TV, etc.) on a single day”.
  • For example this chart is fun – reading for pleasure increases with age, more if you’ve had a lot of schooling.  Who are these people with an hour a day to spare for pleasurable reading?
  • Here’s a chart showing hours work/week since 1900; notice the recessions.