Showing posts with label Alex Tabarrok. Show all posts
Showing posts with label Alex Tabarrok. Show all posts

Friday, February 22, 2013

Living free

Alex Tabarrok wrote a letter to his son's high school principal, hoping that the school will not become even more like a prison.
Thank you for requesting feedback about the installation of interior cameras at the high school. I am against the use of cameras. I visited the school recently to pick up my son and it was like visiting a prison. A police car often sits outside the school and upon entry a security guard directs visitors to the main office where the visitor’s drivers license is scanned and information including date of birth is collected (is this information checked against other records and kept in a database for future reference? It’s unclear). The visitor is then photographed and issued a photo pass. I found the experience oppressive  Adding cameras will only add to the prison-like atmosphere. The response, of course, will be that these measures are necessary for “safety.” As with security measures at the airports I doubt that these measures increase actual safety, instead they are security theater, a play that we put on that looks like security but really is not.
...
When we surround our students with security we are implicitly telling them that the world is dangerous; we are whispering in their ear, ‘be afraid, do not venture out, take no risks.’ When going to school requires police, security guards and cameras how can I encourage my child to travel to foreign countries, to seek new experiences, to meet people of different faiths, beliefs and backgrounds? When my child leaves school how will the atmosphere of fear that he has grown up in affect his view of the world and the choices he will make as a citizen in our democracy? School teaches more than words in books.
Tuesday I attended an lunch for international families at my five year old's elementary school. The school, like most NZ schools, is a series of buildings with no internal connections. So, kids run around between buildings pretty regularly. There's a low fence around the school property, but no real checks at the gates other than teachers having some idea of who might be parents. Visitors are asked to check in at the office; parents don't particularly bother though. And, part of the schoolyard is a short-cut from the University campus to a very good dim-sum place - I walked through pretty often even before the five year old attended.

Susan and I walked over to the building where the lunch was being held, bringing our pot-luck lunch contribution, said hello, and joined in for a pleasant lunch with other families. Nobody was checking that food was made in licensed kitchens. Nobody challenged us or checked ID. There are no metal detectors or security guards. There are no security cameras. Just peaceful people enjoying the kind of company that should be the birthright of everyone, and was common in the America of thirty years ago.

You can choose to live like this too. Sure, New Zealand is getting worse, and it's definitely worse than some parts of the US if marijuana freedom is an important part of your bundle of liberties. But NZ is starting from a much better spot than the US, and it seems to be getting worse slower than other places.

Things aren't bad enough to leave yet? Fine. Freedom's a value, but so too are other things like distance from family and wealth differentials and access to Ethiopean restaurants. But write down today some bright-line rules that you think should trigger your future exit; it's easy to acclimatize to gradual changes for the worse.

Previously:

Thursday, December 6, 2012

Not an equilibrium

So taxi cab tips are up consequent to a new credit card swipe system that encourages large tips. Cheap Talk and Marginal Revolution have both noticed.

Here's Alex Tabarrok:
Joshua Gross estimates, that this simple nudge has increased the income of taxi drivers by $144 milion per year. Had the drivers demanded this increase via an increase in rates it probably never would have happened.
But does this make the drivers better off? Not unless they own the taxi medallion!

Joshua notes that the new charging system started in 2007.

Recall that New York City taxicabs are heavily regulated: the right to run a cab has to be purchased. The medallion giving you the right to run a cab is expensive. The 2004 annual report of the Taxicab and Limousine Commission gives the price history from 1947 to 2004.
They stopped publishing that graph in subsequent years' annual reports, but they do report average sale prices:
  • 2005: $350,000 individual, $391,000 corporate
  • 2006: $411,000 individual, $525,000 corporate
  • 2007: $420,964 individual, $573,489 corporate
  • 2008: $550,000 individual, $747,000 corporate
  • 2009: $584,000 individual, $775,000 corporate
  • 2010: $624,000 individual, $850,000 corporate
  • 2011: $699,000 individual, $1,000,000 corporate
  • 2012: Average annual prices are not yet available. 
Every year when I teach my public choice class, I look up the taxi medallion price when I lecture on transitional gains traps. And I've been a bit puzzled about why the prices seemed to skyrocket during the 2008 recession and onwards; the top line of the graph above, $350,000, seems pretty low compared to where things are now.

I added red bars at the bottom of the chart above for NBER recessions, although the really poor resolution on the original PDF makes identifying years a bit tough. Note also that the first few years aren't to the same scale as the rest: 1947, 1950, 1952, 1959, 1960, 1962, 1963, then annual ticks thereafter. You can really see the dip from the 1991 and 2001 recessions, though the latter recession's dip started prior to the recession. But the 2007-2009 downturn was surely larger than the prior recessions, and was accompanied by a strong increase in medallion sale prices. This puzzled me until now. The present value of the potential rents increased with the new fare system, so medallion prices went up.

This surely then was accompanied by an erosion in non-tip payments to drivers since the market for driving cabs is competitive, even if the right to run a cab isn't. This is my prediction; I haven't been to New York in a while. Maybe somebody who knows can tell me whether I'm on the right track. 

Monday, July 30, 2012

Price of marrow

If there weren't already enough reason to encourage payment for blood donation (counterarguments to which are ably rebutted by Alex Tabarrok), we might have another.

Bone marrow donors, who donate through peripheral blood stem cell transplantation, can now be compensated in the US under the same provisions that let blood donors be compensated. PBSCT seems  more intrusive than blood donation, but somewhat less intrusive than standard marrow donation [see here for one discussion].

Demand for marrow seems likely to increase: bone marrow transplant may be effective as treatment for HIV. If these kinds of results hold up, expect some very effective political campaigners to start helping to change legislation to encourage marrow donation in places where compensation isn't yet legal.

I donated blood a half dozen times as an undergraduate; as I've yet to make any withdrawals from the system, I'm refraining from any further donations on principle until policies around compensation are changed.