2026-06-30 01:47:16
1. The great Scott Wheeler on Stephen Sondheim (Free Press).
2. Is space the most underrated policy area?
3. On the USAID and deaths debate. Hardly the final word, but an injection of sanity into what has been a low quality debate. Here is commentary from GPT Pro. In a few years we might have some accurate estimates.
4. Using LLMs in economic history.
5. Measuring economic growth through the valuation of human life.
6. Brooklyn Coffee Shop showcases my book The Complacent Class.
The post Monday assorted links appeared first on Marginal REVOLUTION.
2026-06-30 00:00:50
The temptation to use artificial intelligence (AI) to cheat is shaking up elite universities in the United States. Professor Roberto Serrano, who is the Harrison S. Kravis University Professor of Economics at Brown University, has detected a massive fraud in one of the classes he teaches, ECON 1170, an advanced undergraduate course in mathematical economics. He has conclusive evidence that at least 50 students cheated on the March midterm exam, making it the biggest known scandal at Brown and in the entire Ivy League, which brings together the East Coast’s eight most elite private universities, including Princeton, Harvard, Yale, Columbia, Cornell, Dartmouth College and University of Pennsylvania.
When he reported the case to high-ranking officials at Brown, he got a cold reaction. The response from the president, he said, was absolute silence. The dean did not comment either until Serrano took the case before the Academic Code Committee.
Here is the full story, via Anecdotal.
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2026-06-29 19:17:37
Writing in the QJE, Derenoncourt, Kim, Kuhn, & Schularick argue that today’s black-white wealth gap can be explained by differences in initial conditions from over a hundred and fifty years ago, i.e. slavery. But there is an important, and glaring objection: in the age of immigration (1850–1924) millions of whites immigrated to the United States with essentially no wealth and yet they caught up to the “heritage” whites quite quickly and indeed today are richer than heritage whites.
Brian Marein collects and carefully analyzes the data:
Persistent racial wealth inequality in the United States is often attributed to the intergenerational transmission of historical wealth disparities. However, inferring the determinants of long-run inequality from group-level data is complicated by the arrival of 30 million Europeans during the Age of Mass Migration (1850–1924), who are by construction included in average white wealth despite having no direct claim to the wealth accumulated by earlier Americans. This paper accounts for this compositional change in the white population by documenting wealth dynamics among European immigrants and their descendants. Cash-on-arrival data show that immigrants began with substantial wealth deficits relative to the native-born. Yet by the late twentieth century, these deficits had closed, as indicated by comparisons between the descendants of later-arriving Southern and Eastern Europeans and those of longer-established Northwestern Europeans. This pattern implies rapid intraracial wealth convergence, in contrast to the slower convergence observed across racial groups. A stylized model shows that these differences can be largely accounted for by income. These findings demonstrate that large wealth disparities do not mechanically persist when groups have access to comparable economic opportunities.
If initial conditions don’t explain the wealth gap then the most likely explanation is an income and/or savings gaps. I am reminded of an earlier politically incorrect paper of the year by Nathaniel Hilger and see also my review of his book The Parent Trap.
The post Politically Incorrect Paper of the Day: The US Racial Wealth Gap appeared first on Marginal REVOLUTION.
2026-06-29 14:07:10
Most pharmaceuticals involve high upfront costs, to discover and test the drug, and very low marginal costs. Another pill can be printed almost for free.
That cost structure favors health systems, such as that of Britain, that try to pay lower for services. They can end up getting a relatively good deal from price discrimination. After all, they can be served at low marginal cost, at least for those ttreatments.
Now imagine a biomedical future where many more treatments are based on the sequencing of your individual genome, and then the development of specific treatments personalized to you. Obviously it will depend on developments, but very likely those remedies will have relatively high marginal costs.
In that setting the British approach to health care procurement and pricing will work less well. It is the well-capitalized, “overspending” systems, such as the United States, that will have an easier time making the adjustment.
“The rising relative advantage of well-capitalized health care systems” is a neglected trend, because it makes a lot of earlier elite pronouncements about health care economics look a bit off.
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2026-06-29 13:06:03
Workplace technological changes were instrumental in creating new tasks for women over the last century. This paper studies the adoption of the typewriter into US workplaces. Exploiting exogenous variation in typist demand across sectors, I document that the typewriter increased women’s labor force participation, leading to lower rates of marriage and fertility. These developments stemmed from a transition of White women from households into office work and an indirect crowding-in effect drawing Black women into household services. Acting as a “meeting technology,” the typewriter reshaped social interactions, enabling White women to marry above their socioeconomic backgrounds and achieve upward mobility.
That is from a recent paper by Myera Rashid. Via Kris Gulati.
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2026-06-29 00:45:28
1. Why were the Covid vaccine trials so quick?
2. Sumner on Greenspan, Giannis, and more.
3. 100 best books of the 21st century? (NYT).
4. AI and the crisis of classical liberalism.
5. The memory tax, good thing supply is elastic.
6. Is Teortaxes solving for the political equilibrium?
7. Frank Lloyd Wright house for sale in TN for $1.6 million.
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