Digital Network ID: Teaching
Showing posts with label Teaching. Show all posts
Showing posts with label Teaching. Show all posts

13 Aug 2020

Asset Pricing Mooc, Resurrected - Barokong

The videos, readings, slides/whiteboards and notes are all now here on my webpage.  If you just want the lecture videos, they are all on Youtube, Part 1 here and Part 2 here.

These materials are also hosted in a somewhat prettier manner on the University of Chicago's Canvas platform. You may or may not have  access to that. It may become open to the public at some point.

I'm working on the quizzes, problems, and exams, and also on finding a new host so you can have problems graded and get a certificate. For now, however, I hope these materials are useful as self-study, and as assignments for in-person classes. I found that sending students to watch the videos and then having a more discussion oriented class worked well.

What happened? Coursera moved to a new platform. The new platform is not backward-compatible, did not support several features I used from the old platform, and some of the new platform features don't work as advertised either. Neither the excellent team at U of C, nor Coursera's staff, could move the class to the new platform. And Coursera would not keep the old platform open. So, months of work are consigned to the dustbin of software "upgrades," at least for now.

Obviously, if you are thinking of doing an online course, I do not recommend that you work with Coursera. And make sure to write strong language about keeping your course working in the contract.

Update: The latest version of the class is here

21 Jul 2020

Wonderful Loaf - Barokong

A charming animated free-market poem by Russ Roberts, on the invisible hand, athttp://wonderfulloaf.org

The "read the poem" link includes much interesting annotation.

Mild critique: I would rather the "planner" be a well-meaning economist faced with impossible information problems than a darkly sinister white guy in a suit. It looks like all we need is better  planners. And the bakers seem really happy about all that competition and free entry, whereas real bakers quickly band together to demand regulation, occupational licensing, and other restrictions. But I'm just whining, it's a good romp through the invisible hand in a mythic war-free and Disney-clean 1940s Europe.

30 Jun 2020

Sumner on teaching economics - Barokong

Scott Sumner has a terrific post on teaching economics. (HT Marginal Revolution)

The core ideas of economics are extremely counterintuitive and are not accepted by most people....
Non-economists also tend to reject the central ideas of basic economics, and for reasons that are not well justified. [In particular these central ideas do not rest on hyper-rationality.] For the economics profession, our “value added” comes not from spoon feeding behavioral theories that the public is already inclined to accept, rather it is in teaching well-established basic principles of which the public is highly skeptical.  Thus we should try to discourage people from believing in the following popular myths:
1.    People don’t respond very strongly to economic incentives.  (I.e., the demand for life-saving drugs is very inelastic.)
2.    Imported goods, immigrant labor, and automation all tend to increase the unemployment rate.
3.    Most companies have a lot of control over prices.  (I.e. oil companies set prices, not “the market”.)
4.    Policy disputes over taxes and regulations are best thought of in terms of who gains and who loses.
5.    Experts are smarter than the crowd.
6.    Speculators make market prices more unstable.
7.    Price gouging hurts consumers.
8.   Rent controls help tenants.
These myths are all widely believed by the general public.
Our primary goal should not be to add new information, it should be to have people unlearn false ideas about the world.
My emphasis.

One is tempted to add to the list. (An invitation to comments.)  Many of them stem from a basic principle -- "find the supply response" or ("demand response") that the fallacy ignores. "State the budget constraint" is another good habit.  Look for competition, entry, and choice among alternatives -- a market is not just bilateral negotiation. I might add reverse causality and selection bias -- empirical economics has stories to tell as well.

Scott frames the essay as a reaction to an Atlantic story advocating more teaching of behavioral economics. Scott is very clear: he is not opposed to behavioral economics. (He will likely be misquoted on this. Some behaviorists are very touchy. I know this from painful experience.) He is merely opining that our profession has more value added in teaching regular economics first. Regular economics is harder, less intuitive, less known, and therefore more valuable. To really understand behavioral economics, you have to understand what it is behaviorists object to -- and the vast amount of regular economics that good behaviorists agree with. Art schools might do better teaching people to draw, music schools to teach classical before atonal, physics programs newtonian before quantum mechanics, and so forth.

Most people find the key ideas of behavioral economics to be more accessible than classical economic theory. If you tell students that some people have addictive personalities and buy things that are bad for them, they’ll nod their heads.  And it’s certainly not difficult to explain procrastination to college students. [Dave Henderson's nomination for best sentence in the essay!] Ditto for the claim that investors might be driven by emotion, and that asset prices might soar on waves of “irrational exuberance.”  ... One should spend more time on subjects that need more time, not things that people already believe.
I.e. let us not indulge in our own quest for teaching ratings via confirmation bias.

Yes, people do nutty things. But if you approach rent control, and all you have in the back of your head is behavioral stories, you will miss the clear prediction, borne out time and time again, that within a decade there will be a massive shortage of rental housing.

Scott does not neglect how awful most economics courses are

That doesn’t mean that I agree with the way that economics majors are currently being taught.  Our intermediate level courses are far too theoretical; they waste students’ time on lots of minor theories that would only be useful for people planning to do graduate work in economics.  (Most students do not.)  Too many homework problems with Cobb-Douglas utility, Hicksian demand, marginal rates of substitution, Giffen goods, gross substitutes, indifference curves, etc.  Some of that is appropriate, but all economics courses should focus heavily on applied economics.
Most students come out of such courses still unable to coherently judge Scott's nice list of fallacies. Most of our courses are histories of thought, "greatest hits" of past theoretical contributions, passed on rather mindlessly. We teach many harmful parables. For example, natural monopoly due to increasing returns to scale, and the need for resulting regulation is a staple, passed down from about 1910. It has little to do with modern industrial organization in a global economy.

In part, it's easy to get through an hour by moving the curves around. Teaching real applied cases is much harder.

Macroeconomics teaching is in worse shape. Keynesian macro, like behavioral economics, enshrines most people's intuitive fallacies. Consuming more will increase output - forgetting the budget constraint. Breaking windows is good as it gives employment to window repair people. Good Keynesian macro justifies these apparent fallacies with carefully described "frictions," by which classical economic results fail. But you have to understand those classical results first to arrive at a correct economics that recognizes frictions (like behavioral biases) but doesn't violate budget constraints and accounting identities. Most macro teaching consists of young professors pushing IS-LM curves around, though such curves appear nowhere in their own research, nor anyone else's since the time they were born. Well, it passes the time easily.

An important point is implicit. Economics is not hard because of math. The math in even graduate level economics is no greater than in sophomore physics. Classical economics is hard because it can attack social problems in a value-free, cause-and-effect way, and upends the little morality stories that most people use to think about those problems -- rents are high because landlords are greedy. "Learning to think like an economist" is indeed best learned by application. And "learning to think like a behavioral economist" requires learning to think like an economist first.

20 Jun 2020

Cost divergence - Barokong

Source: Marginal Revolution
This lovely picture is fromWhy are the prices so D*mn High? by Eric Helland and Alex Tabarrok. (It's covered in Marginal Revolution: TheInitial post,Bloat does not explain the rising cost of education, and an upcoming summary on health care.)

Bottom line: objects got cheap, people got expensive. Technology, automation, globalization (thank you China), and quality improvement made goods cheaper. People, especially skilled people, got more expensive. All of which should make you feel good if you're a person and especially a skilled person.

The source of the relative rise in the cost of education and health care is less clear. Looking around at  a typical university,  school system, or hospital suggests massive bloat and inefficiency. Alex suggests  not:

I assumed that regulation, bloat and bureaucracy, monopoly power and the Baumol effect would each explain some of what is going on. After looking at this in depth, however, my conclusion is that it’s almost all Baumol effect.

In case you need to look it up (Wikipedia),

Baumol's cost disease (or the Baumol effect) is the rise of salaries in jobs that have experienced no or low increase of labor productivity, in response to rising salaries in other jobs that have experienced higher labor productivity growth....
The rise of wages in jobs without productivity gains is from the requirement to compete for employees with jobs that have experienced gains and so can naturally pay higher salaries, just as classical economics predicts....
The classic example:

the same number of musicians is needed to play a Beethoven string quartet today as was needed in the 19th century; the productivity of classical music performance has not increased. On the other hand, the real wages of musicians (as in all other professions) have increased greatly since the 19th century.
The basic idea, if productivity of skilled people rises in one place, then you have to pay more to the skilled people who stay behind even in an industry like education that has had no change in technology. In education, where it's pretty clear that technology has not improved, they find that we use fewer teachers per student, and teachers are paid more. Most of the rise in the cost of health care, they claim, is greater doctor salaries. My personal observation of the massive growth of school bureaucracies, and astonishing and growing waste in our health system is denied by their data.

I think the question is still open, but theirs is a challenging view which is why I point to it in the blog. They close with a suggestion that education and medicine are ripe for a big technological disruption.

As they point out,  "The cost disease is not a disease but a blessing." It is the result of the tremendous increase in productivity of skilled people over the last few decades. Compared to stagnant periods of human history, a chance to fight about divvying up a bountiful pie is not the worst thing that could happen to us.

Two minor quibbles: We should not state the "cost disease" proposition wages have increased while productivity has not increased. In the Baumol proposition, and to a good approximation in the huge change in musician wages from 1826 to now, musicians are paid their marginal products.  The physical marginal product of string-quartet playing is the same, as (apparently) is the physical marginal product of teaching, but the value marginal product has risen, which is why wages rise.

When skilled people leave music playing for other fields, music playing contracts, and people are willing to pay more to hear music played. (All of this may or may not be true about music. I'm just using it to illustrate the theorem.) You can charge more for a string quartet performance, so the amount of (real) dollars produced by playing a string quartet rises in parallel with the productivity of potential musicians in other fields.

The pure "cost disease" phenomenon, then, should accompany a dramatic reduction in the physically unchanged technology. And indeed, a few horse shoers and craft blacksmiths still exist, and charge modern prices to wealthy horse owners.

But health care and education have rapidly expanded, not contracted. We need a different source for the fact that the value marginal product has risen while the physical marginal product has not done so.   Evidently, demand for health care and education has risen as well. We need both observations to account for the rising relative cost.

9 Jun 2020

Wokeademia spreads - Barokong

In my first and second posts on "diversity statements," I discovered how these political loyalty oaths are now required by the University of California and the National Institutes of Health.

In a quick look at academicjobsonline I discovered that this cancer has metastasized even further. "Diversity statements," professions of loyalty to the "diversity" cause, and testimonials about one's past commitment to "diversity" efforts pervade academic jobs postings. This is not just a requirement imposed by a nebulous bureaucracy, as I had assumed. It is deeply embedded in each department's recruiting, with therefore the active participation of faculty.

At the cost of repetition, let me be clear about this sensitive issue.

Universities started with a desire to hire African Americans, women, and other groups, to address the sadly small numbers of these on their faculties. Racial and gender discrimination being illegal, this was soon labeled a "diversity" effort. But for a long time "diversity" meant only who you hire, not their politics.

The "diversity statement" is a new effort, in which every potential faculty member must pledge their personal loyalty to the diversity movement, and pledge future activity.  They also must describe their personal experiences advancing "diversity." And they must not mention ideological or other diversity.

In part, as documented in my first post and references, this has simply been a way to more effectively impose illegal racial and gender quotas.

The part I object to in these posts is the "diversity statement," and the activity it commands. This statement is a clearly political oath, and squashes ideological diversity. Republicans are a lot rarer on college faculty than any racial or sexual group!

This post is not about the desirability of seeing more under-represented groups in academia. It is not about the previous "diversity" regime which mostly amounted to spending a lot more time making sure one had examined all potential candidates from under represented groups, and documented such to upper administration. We can discuss those another day. The point here is only about the diversity statement, and the requirement to bend onesresearch, political support and activityto its cause.

Here is a brief sampling of current job postings (it's a little late in the season, so the pickings are slim. I'll look again in the fall. All emphasis in italics are mine. Major news below, Cornell seems to have the same institution-wide diversity pledge requirement as the UC system.

*******

CALIFORNIA STATE UNIVERSITY, LONG BEACH

Position: Assistant Professor of History

Required Qualifications:

Ph.D. in History with specialization in Modern World history, with an emphasis in either the African Diaspora, the Islamicate, or South Asia

....

Demonstrated commitment to working successfully with a diverse student population

Preferred Qualifications:

...Evidence of support for and/or experience related to the University’s strong commitment to the academic success of its diverse student body ...

Duties:

...enthusiastically support the University’s strong commitment to the academic success of all of our students, including students of color, students with disabilities, students who are first generation to college, veterans, students with diverse socio-economic backgrounds, and students of diverse sexual orientations and gender expressions.

How to Apply - Required Documentation:

An Equity and Diversity Statement about your teaching or other experiences, successes, and challenges in working with a diverse student population (maximum two pages, single-spaced)....

(Cal state Long Beach has lots of job postings at the moment, all with this language, so it does come from upper administration, but with the consent of the departmental faculty.)

***********

Purdue University, History Department

Position Title: Assistant Professor of History

Position Description: Tenure Track Assistant Professor in Military History / History of the American Civil War Era

[Someone still teaches military history! I had great hope for this one. But no...]

Principal Duties: ... Applicants will be expected to enhance and complement the strengths of the department in the histories of science, technology, and medicine, gender, politics, and violence/conflict/Human Rights.

Purdue University’s Department of History is committed to advancing diversity... Candidates should address at least one of these areas in the cover letter, indicating their past experiences, current interests or activities and / or future goals to promote a climate that values diversity and inclusion.

************

Ohio State University, Mershon Center for International Security Studies

Position Title: Wayne Woodrow Hayes Chair in National Security Studies

Application Instructions:

...The cover letter should articulate your demonstrated commitments and capacities to contribute to diversity, equity, and inclusion through research, teaching, mentoring, and/or outreach/engagement.

************

University of Connecticut, History

Position Title: Assistant Professor in Early Modern Global History, 1400-1750

Subject Area: History / Ottoman Empire

MINIMUM QUALIFICATIONS

Applicants must also highlight a commitment to diversity, equity, and inclusion in teaching and service.

TO APPLY

...Additional required materials include a curriculum vitae, commitment to diversity statement

*********

Cornell University, Anthropology

Position Title: Economic Anthropologist

...Applications should include:...  4. a statement explaining how your teaching and research would contribute to diversity and inclusion at Cornell (please see http://facultydevelopment.cornell.edu/information-for-faculty-candidates/);

...The College of Arts and Sciences at Cornell embraces diversity and seeks candidates who will create a climate that attracts students and faculty of all races, nationalities, and genders.

Application Materials Required:

...Diversity and Inclusion statement

I followed the link:

All applicants for tenure track and tenured faculty positions are asked to submit a Statement of Contribution to Diversity, Equity and Inclusion. ...

Examples:
...Explaining how the candidate's research, scholarship or creative activities contribute to understanding the barriers experienced by marginalized groups;
...Committing to public engagement with organizations or community groups serving marginalized populations or extending opportunities to disadvantaged people

In general, strong statements share common attributes; the statement:
...Demonstrates a track record on diversity, equity and inclusion matters throughout candidate's career as a student and educator...
Provides clear and concrete examples of how the candidate might approach the issue articulated at Cornell University.

The statement links to Cornell's "rubric assessing candidate on diversity equity and inclusion" which looks very similar  to the University of California rubric:

"educate"  means "agree with us."

Don't argue with the thought police

Listing numbers is a good way to pass this test.

Strong
...Sophisticated understanding of differences stemming from ethnic, socioeconomic, racial, gender, disability, sexual orientation, and cultural backgrounds and the obstacles people from these backgrounds face in higher education.

"understanding" means that this is settled fact. You are not allowed to question this.

... Provides examples of programs to address climate or underrepresentation.
...Addresses why it’s important for faculty to contribute to meeting the above challenges.
Experience Promoting Diversity, Equity, Inclusion
Weak
May have attended a workshop or read books, but no interest in participating ....
You have to be on the team.

Strong
Significant direct experience advancing diversity, equity and inclusion through research, service and teaching. Examples may include advising an organization supporting underrepresented individuals; addressing attendees at a workshop promoting diversity, equity, inclusion; creating and implementing strategies and/or pedagogy to encourage a respectful class environment for underrepresented students; serving on relevant university committee on diversity, equity and inclusion; research on underrepresented communities; active involvement in professional or scientific organization aimed at addressing needs of underrepresented students.

Notice the clear direction from the university what the results of your research must be. An participation in the club activities is the most important concrete step

Plans to Advance Diversity, Equity, Inclusion at Cornell
Weak
... Merely says they would do what is asked, if hired.
Strong
Details plans to promote diversity, equity and inclusion through research, service and teaching...
References ongoing efforts at Cornell and ways to improve and modify them to advance diversity, equity and inclusion.

Support the team if you want the job.

********

Ohio State University, The Department of Political Science

Position Title: Politics of Race, Gender, and Ethnicity in American Politics

This position is part of a Faculty Cluster Hiring Initiative ... to increase diversity in our professorial ranks, foster an inclusiveness, and promote research and teaching on topics central to racial, ethnic, gender, and sexual orientation.

Application Instructions: ... and a diversity statement that addresses the candidate’s past efforts, as well as future plans, to advance equity, diversity, and inclusion in their scholarship, teaching, and service.

3 Jun 2020

Online Asset Pricing back again! - Barokong

The course is here, University of Chicago Canvas course 23303. To log in and use it, you need to email instructional.design@chicagobooth.edu.  The course is open to anyone, not just University of Chicago students. If that doesn't work, email me john dot cochrane at stanford dot edu, and I'll see what's wrong.

The videos, notes, and other materials are still available ungated on my website, here, under the "Asset Pricing" tab.

If all goes well you see this:

Economic note: It's interesting how software depreciates so rapidly, though its physical being depreciates not at all. Perfectly good software stops working as operating systems and machines get "upgraded," as IT departments seem to latch on to new "solutions" every three years, and so forth. Most of my email from before the mid 2000s is gone due to an "upgrade." My website is in the midst of an "upgrade" crisis, and I can't seem to keep the online class going for more than two or three years. There is an interesting economics paper in this. As son of a historian, I feel for the historians of a few hundred years from now who, looking back on our interesting era, will find a blank void, as all of our records are unreadable.

English

Anies Baswedan

Tekno