Rethinking the Yellowbelt: Report Release

After a full year of research, the largest, most comprehensive report on the economics, politics, history, and policies of zoning in Toronto is available for download.

The full report is available both on the Housing Matters website, and quickly downloadable here: Rethinking the Yellowbelt

The “Yellowbelt” refers to the portion of the city that’s zoned exclusively for detached homes. The report goes into detail explaining when and why such a zone came into existence, where it spreads in the city, who is hurt by the existence of this zone and how; and what it will take to change the system.

A summary of the report follows. Of course, the report itself goes into much more detail.

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Romance Econometrics

I had a mentor at BYU, Prof. James McDonald, who tried to convince us that

  • Econometrics is Fun.
  • Econometrics is Easy.
  • Econometrics is Your Friend.

One of his classes made a bronze plaque out of it for him. He also tried to convince us that Economics is Romantic because this one guy took a girl to his class on a date and she married him anyway. Because he was one of the economists I’ve tried to model my life after, I’ve always been on the lookout for ways to convince people that econometrics is, in fact, fun, friendly, easy, and romantic.

A while back, Bill Easterly blogged about how marriage search is like development, and in the process talking about how unromantic economists can be:

I recently helped one of my single male graduate students in his search for a spouse.

First, I suggested he conduct a randomized controlled trial of potential mates to identify the one with the best benefit/cost ratio. Unfortunately, all the women randomly selected for the study refused assignment to either the treatment or control groups, using language that does not usually enter academic discourse.

With the “gold standard” methods unavailable, I next recommended an econometric regression approach. He looked for data on a large sample of married women on various inputs (intelligence, beauty, education, family background, did they take a bath every day), as well as on output: marital happiness. Then he ran an econometric regression of output on inputs. Finally, he gathered data on available single women on all the characteristics in the econometric study. He made an out-of-sample prediction of predicted marital happiness. He visited the lucky woman who had the best predicted value in the entire singles sample, explained to her how he calculated her nuptial fitness, and suggested they get married. She called the police.

He goes on from there to describe how he eventually did find a mate and makes a comparison with development and over-reliance on econometric methods. As popular as it is in Libertarian circles to bash on econometrics, I’d like to defend empirics by pointing out that his regression advice was not sound:

1 – The suitor’s regressions ignored the self-selection bias. Regressions only tell us what the ‘average’ effects are, that is the effect for the ‘average’ person. Making the average guy happy is only relevant if he is the average guy. Economists being the strange lot we are, it is likely that it takes a special kind of person to marry one of us. He ought to have found a bunch of guys very similar to himself and examine the qualities that made a difference from among (and this is key) the population of women willing to marry guys like him – the women who self-select themselves into our group. If he then approached a women who was not in that group, no wonder he was rejected! I knew I had my work cut out for me since I was in junior high: a Latter-day Saint economist-in-embryo who read Shakespeare “in the original Klingon”, and who carried a briefcase to school? Small sample sizes indeed!

2 – He ignored endogeneity. Instead of trying to convince her that research showed she would make him happy, he needed to present research that demonstrated he would make her happy, and that’s the other half of the regression: male qualities on marital happiness. No wonder she rejected him: his regressions didn’t answer her question!

Personally, I took more of a Bayesian approach. Bayesians believe that a lot of things in life (like regression coefficients) are random and over time we get better and better signals about where the truth is, but we only ever approach it by degrees. First, by trying to become a friend, I identified if a woman was in the group of people who might marry someone like me. Each interaction gave me more information about the error term and the regression coefficients about fostering a happy, loving friendship that could endure. After any failed relationship, I had a new variable or two to add to my equations and I understood the ‘relationships’ between relationship variables better. That might be about finding out different things I needed (hunh, so her political affiliation isn’t as important as I thought and her willingness to smile at me is vital) or about learning more and better policies over time that I could enact to make her happier (tips for being a better listener or learn to identify her love languages and feed them to her regularly).

One of the most important regression-related romance tips I learned was to control the variables I could control, and leave the residual in God’s hands. I recall a graduate labor economics research seminar where the presenter claimed that the marriage market always cleared. I complained that I was willing to supply a great deal more marriage than had ever been demanded at prevailing prices. I was reassured that the marriage market clears in equilibrium, and I might not have found my equilibrium yet. The presenter’s prediction was, thankfully, prescient: I found a buyer a year later, and last week we celebrated 5250 days of married bliss.

Nightcap

  1. Charlemagne Chris Wickham, History Today
  2. Populism Simon Schama, Financial Times
  3. Harold Bloom (1930-2019) Flesch & Roth, n+1
  4. German supermarkets Rachel Lu, the Week

Nightcap

  1. The empty seat on a crowded Japanese train Baye McNeil, Japan Times
  2. Interstellar conversations Caleb Scharf, Scientific American
  3. Donald Trump is a weak man in a strongman’s world Ross Douthat, New York Times
  4. The Poland model: left-wing economic policy and right-wing social policy Anna Sussman, the Atlantic

Nightcap

  1. Nozick, State, and Reparations Irfan Khawaja, Policy of Truth
  2. No friends but the mountains Maurice Glasman, New Statesman
  3. The layers of Israel’s Trump mistake Michael Koplow, Ottomans & Zionists
  4. Why hasn’t Brexit happened? Christopher Caldwell, Claremont Review of Books

Thinking globally, as a dad, and as a libertarian

There’s no reason to keep writing. I have an nine month-old (nine-month old?) boy and a twenty-nine month-old girl. My vote doesn’t matter. I’ve lost my zest for ideas and events. Nobody cares what a libertarian has to say anymore, anyway. We’re back in the wilderness, wandering aimlessly and pettily bickering with each other about the stupidest things. We had our moment, we truly did, and it got flushed down the toilet along with the big, racist turds we dropped in the porcelain bucket.

Something in the world of ideas has turned stale. Or, I’ve gone stale. I don’t think I have, though. I’ve been reading plenty of books and plenty of internet, and much of it is enjoyable and provides me with a better sense of the world I inhabit. Has the world of ideas always been this stale? Has “the world of ideas” been a Big Lie to begin with, a cover-up invented by political strategists to influence youth and vie for power?

Libertarianism itself is no longer what I thought it was. Consider Syria. What’s a libertarian to do? A libertarian from the US would probably say that his country’s military leaving Syria is a good thing. A libertarian from Syria would probably say that the US leaving Syria is a bad thing. Actually, this is pretty cool now that I’ve thought about it. What is the libertarian position on Syria? Abandon it and regroup somewhere else? Would this “somewhere else” then become a fortress of libertarianism? Would it become a launching pad for military action, for violent acts of aggression against an equally violent polity?

Libertarianism seems to work great in an American institutional context, but what happens when libertarianism moves abroad? Now, I’m not about to go all sideways (to borrow a phrase from an old black cook that I know here in Texas). I’m still a libertarian, but only because it’s the least bad option out there. The world could use more liberty. This liberty can be gained through non-violent indigenous means most of the time. As a citizen of the world’s big, bad hegemon, this is the position I have a duty to take. If I was born in, say, Kurdistan, though, or Angola, violence might be the best least bad option to take en route to more liberty.

Edwin’s 2014 post continues to impress. Is this because I am getting older? Is this because I have other shit to do besides ensure (online…) that liberty remains as pure as possible?

Nightcap

  1. French financial experts are anything but Diego Zuluaga, Alt-M
  2. The beauty of Soviet anti-religious art Roland Brown, Spectator
  3. Obama, Erdoğan, and the Syrian rebels Seymour Hersh, LRB
  4. Europe, Turkey, and the Kurdish rebels Bill Wirtz, TAC