If the Asian Growth Model is not Working Anymore

In 1981 poverty rate in China was 64% of the population, in 2004 the rate was 10%: it means that 500 million people stepped out of poverty (look here and here). China and South-East Asia economies were propelled by export demand and by someone else’s debt. What now? In the words of FT columnist Michael Pettis

The assumption that implicitly underlay the Asian development model – that US households had an infinite ability to borrow and spend – has been shown to be false. This spells the end of this model as an engine of growth.

It seams like bad news for economists pointing at free trade and export-led growth as a practical receipt for development.  It seams like bad news for everybody. People in developing countries need to increase their income, and it is difficult to think how they could find the money in their neighborhoods.

Tuesday, 19 May 2009

Economic Gains Do Not Mean Political Gains

In this post Dani Rodrik explains why trade theories suggest that the U.S. should liberalize trade for agricultural products (especially cotton and sugar) and abolish visa restrictions on on highly-skilled foreign workers. This will produce gains for the U.S. society as a whole and probably for the poorest part of the world population, that happens to be made up of farmers. (Of course India will probably see some of its engineers flee the country, but that is not exactly a win-win game).

But countries are not ruled by trade theories. Usually they are ruled by people seeking to keep power as long as possible. And sometimes people rely on minority groups within their society to keep themselves in power.  Have a look at this paper, “The Diminishing Effect of Democracy in Diverse Societies” by Gilat Levy and Oriana Bandiera (London School of Economics and Political Science). Indeed, this can explain why western Europe heavily defends its farmers (4-5% of the population) sacrificing the common good.

An interesting theory should consider not how much a single group benefit or not from trade liberalization but how much influence the group affected by the new policy has on the decision making process. A reduction of trade barriers can help to tackle chronic poverty (have a look at the “Industrial Development Report” by the United Nations Industrial Development Organization). But barriers are not where they are because governments think they are irrational from a political (not economic) point of view.

Wednesday, 13 May 2009

The Dirt Floats

The Kosovo Liberation Army (Albanian acronym UÇK) supposedly run, during the conflict of 1999, torture camps in northern Albania. According to an investigation conducted by Altin Raxhimi, Michael Montgomery and Vladimir Karaj and published (here) by the Balkan Investigative Journalism Network at least 18 people were killed in one of those, a factory compound in Kukës, Albania. Eyewitnesses say prisoner were mainly alleged Kosovo Albanian collaborationist. But as well Serbs and Roma were held in the camp.  And women.

Kosovo’s Prime Minister, Hashim Thaçi, who was then the political director of the KLA, and Agim Çeku, former Prime Minister and former chief of the KLA headquarters, told the BBC they were not aware of any KLA prisons where captives were abused or where civilians were held.

The same sources that witnessed the base in Kukës, told us that the interrogators in Kukës were KLA officers who had been involved in the capture of suspected collaborators.
Both our sources concerning the base, identified several KLA officers involved in the abuses at
Kukës.
One of them is currently in a top position in the judicial system in Kosovo.

After ten years, the history of the ex-Yugoslavia conflicts (so far mainly written by journalists) is still incomplete. Because the people who fought those wars are now ruling that very same land (nationalism is still an effective language to speak). And because the Balkans are the very same mirror and unconscious of Europe (Rada Iveković, 1999). The 1990s wars tell Europe where its own states are coming from: murders and  deportations. And Dorian does not like portraits.

Monday, 11 May 2009

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RSS r-bloggers.com

  • r/finance, 1 year later
    The prominent conference R/Finance, held annually in Chicago, had a great program yesterday and today. As I wrote following last year’s conference, the organizers were criticized for including no women in its speaker lineup. The problem was that no women had submitted papers for consideration; no input, thus no output. I’m a member of the […]
  • A new package for panel data analysis in R
    It has been a long time coming, but my R package panelr is now on CRAN. Since I started work on it well over a year ago, it has become essential to my own workflow and I hope it can be useful for others. panel_data object class One key contribution, that I hope can help […]
  • The never-ending editor war (?)
    The creation of this blog post was prompted by this tweet, asking an age-old question: @spacemacs— Bruno Rodrigues (@brodriguesco) May 16, 2019 This is actually a very important question, that I have been asking myself for a long time. An IDE, and plain text editors, are a very important tools to anyone writing code. Most […]
  • Earthquake Analysis (4/4): Cluster Analysis
    Are you interested in guest posting? Publish at DataScience+ directly from your editor (i.e., RStudio). Category Basic Statistics Tags Data Visualisation Maps R Programming This is the fourth part of our post series about the exploratory analysis of a publicly available dataset reporting earthquakes and similar events within a specific 30 days time span. In […]
  • Mapping Tornado Alley with R
    I caught a re-tweet of this tweet by @harry_stevens: THREAD: I wrote a post on @observablehq about a map I made today. It shows a typical day in the life of a graphics journalist: You never know what problems you'll have to solve on deadline! https://t.co/yRhW1wbLxN #d3js #dataviz 1/7 pic.twitter.com/7N6mmK0nz3 — Harry Stevens (@Harry_Stevens) May... […]

RSS Simply Statistics

  • Generative and Analytical Models for Data Analysis
    Describing how a data analysis is created is a topic of keen interest to me and there are a few different ways to think about it. Two different ways of thinking about data analysis are what I call the “generative” approach and the “analytical” approach. Another, more informal, way that I like to think about […]
  • Tukey, Design Thinking, and Better Questions
    Roughly once a year, I read John Tukey’s paper “The Future of Data Analysis”, originally published in 1962 in the Annals of Mathematical Statistics. I’ve been doing this for the past 17 years, each time hoping to really understand what it was he was talking about. Thankfully, each time I read it I seem to […]
  • Interview with Abhi Datta
    Editor’s note: This is the next in our series of interviews with early career statisticians and data scientists. Today we are talking to Abhi Datta about his work in large scale spatial analysis and his interest in soccer! Follow him on Twitter at @datta_science. If you have recommendations of an (early career) person in academics […]

RSS Statistical Modeling, Causal Inference, and Social Science

  • Vigorous data-handling tied to publication in top journals among public heath researchers
    Gur Huberman points us to this news article by Nicholas Bakalar, “Vigorous Exercise Tied to Macular Degeneration in Men,” which begins: A new study suggests that vigorous physical activity may increase the risk for vision loss, a finding that has surprised and puzzled researchers. Using questionnaires, Korean researchers evaluated physical activity among 211,960 men and […]
  • Hey, people are doing the multiverse!
    Elio Campitelli writes: I’ve just saw this image in a paper discussing the weight of evidence for a “hiatus” in the global warming signal and immediately thought of the garden of forking paths. From the paper: Tree representation of choices to represent and test pause-periods. The ‘pause’ is defined as either no-trend or a slow-trend. […]
  • Data quality is a thing.
    I just happened to come across this story, where a journalist took some garbled data and spun a false tale which then got spread without question. It’s a problem. First, it’s a problem that people will repeat unjustified claims, also a problem that when data are attached, you can get complete credulity, even for claims […]