Quotulatiousness

September 4, 2012

True-but-misleading factoid: “7 kg Of Grain To Make 1 kg Of Beef”

Filed under: Economics, Environment, Food, Health — Tags: — Nicholas @ 00:05

Tim Worstall on the mis-use of a vegetarian-friendly data point:

I asked Larry Elliott where the number came from and was sent this from Fidelity Investments (not online so far as I know).

    The demand for more protein has a significant knock-on impact on grain demand. Livestock is reared on grain-feed, making production heavily resource intensive. Indeed, it takes 7 kilograms of grain to produce just 1 kilogram of meat. As demand for meat rises, this increases the demand for and prices of feedstock — these increased costs of productions flow back to the consumers in the form of higher meat prices. Adding to the upward pressure on feedstock price and much to the dislike of livestock farmers, have been US environmental regulations (the Renewable Fuel Standard) that require a proportion of corn crops be used for the production of bio-fuel.

So, case closed, right? We all need to give up eating meat to save Mother Gaia? Not necessarily. The numbers given are accurate, but only in a particular context: that of raising meat for the US (and, probably, Canadian) market. The rest of the world doesn’t do it this way:

It is only in US or US style feedlot operations than cattle are fed on this much grain. Thus the equation is useful if you want information about what is going to happen with US cattle and grain futures: for that’s the general production method feeding those cattle futures. But very little of the rest of the world uses these feedlots as their production methods. I’m not certain whether we have any at all in the UK for example, would be surprised if there were many in the EU. Around where I live in Portugal pigs forage for acorns (yes, from the same oak trees that give us cork) or are fed on swill, goats and sheep graze on fields that would support no form of arable farming at all (they can just about, sometimes, support low levels of almond, olive or carob growing). Much beef cattle in the UK is grass fed with perhaps hay or silage in the winters.

My point being that sure, it’s possible to grow a kilo of beef by using 7 kilos of grain. But it isn’t necessary. The number might be useful when looking at agricultural futures in the US but it’s a hopelessly misguiding one to use to try and determine anything at all about the global relationship between meat and grain production. And most certainly entirely wrong in leading to the conclusion that we must all become vegetarians.

Which brings us to the lesson of this little screed. Sure, numbers are great, can be very informative. But you do have to make sure that you’re using the right numbers. Numbers that are applicable to whatever problem it is that you want to illuminate. If you end up, just as a little example, comparing grain to meat numbers for a specific intensive method of farming really only used in the US then you’re going to get very much the wrong answer when you try to apply that globally.

September 2, 2012

Institutionalizing income inequality

Filed under: Business, Cancon, Government — Tags: , — Nicholas @ 11:07

At the Worthwhile Canadian Initiative blog, Frances Woolley explains how a couple of data points will work to “bake in” income inequality:

If these are the rules used to determine wages, income inequality will prevail.

It’s impossible for all firms to pay their CEOs above the median salary — by definition, half of executives must be paid below the median. If the majority of firms adopt a compensation policy like the Bell Canada Enterprises one quoted above, CEO salaries will increase inexorably.

At the same time, allowing firms to bring in temporary workers at less than the prevailing market wage prevents the price of labour from being bid up in response to labour shortages, dampening salary growth for workers at the lower wage end of the labour market.

Inequality rules.

August 14, 2012

Anecdotes are not data: Demise of Guys based on anecdotal evidence

Filed under: Media, Randomness — Tags: , , , , — Nicholas @ 09:15

Jacob Sullum on the recent ebook The Demise of Guys: Why Boys Are Struggling and What We Can Do About It, by Philip G. Zimbardo and Nikita Duncan.

Zimbardo’s thesis is that “boys are struggling” in school and in love because they play video games too much and watch too much porn. But he and his co-author, a recent University of Colorado graduate named Nikita Duncan, never establish that boys are struggling any more nowadays than they were when porn was harder to find and video games were limited to variations on Pong. The data they cite mostly show that girls are doing better than boys, not that boys are doing worse than they did before xvideos.com and Grand Theft Auto. Such an association would by no means be conclusive, but it’s the least you’d expect from a respected social scientist like Zimbardo, who oversaw the famous Stanford “prison experiment” that we all read about in Psych 101.

[. . .]

One source of evidence that Zimbardo and Duncan rely on heavily, an eight-question survey of people who watched Zimbardo’s TED talk online, is so dubious that anyone with a bachelor’s degree in psychology (such as Duncan), let alone a Ph.D. (such as Zimbardo), should be embarrassed to cite it without a litany of caveats. The most important one: It seems probable that people who are attracted to Zimbardo’s talk, watch it all the way through, and then take the time to fill out his online survey are especially likely to agree with his thesis and especially likely to report problems related to electronic diversions. This is not just a nonrepresentative sample; it’s a sample bound to confirm what Zimbardo thinks he already knows. “We wanted our personal views to be challenged or validated by others interested in the topic,” the authors claim. Mostly validated, to judge by their survey design.

[. . .]

Other sources of evidence cited by Zimbardo and Duncan are so weak that they have the paradoxical effect of undermining their argument rather than reinforcing it. How do Zimbardo and Duncan know about “the sense of total entitlement that some middle-aged guys feel within their relationships”? Because “a highly educated female colleague alerted us” to this “new phenomenon.” How do they know that “one consequence of teenage boys watching many hours of Internet pornography…is they are beginning to treat their girlfriends like sex objects”? Because of a theory propounded by Daily Mail columnist Penny Marshall. How do they know that “men are as good as their women require them to be”? Because that’s what “one 27-year-old guy we interviewed” said.

Even when more rigorous research is available, Zimbardo and Duncan do not necessarily bother to look it up. How do they know that teenagers “who spend their nights playing video games or texting their friends instead of sleeping are putting themselves at greater risk for gaining unhealthy amounts of weight and becoming obese”? Because an NPR correspondent said so. Likewise, the authors get their information about the drawbacks of the No Child Left Behind Act from a gloss of a RAND Corporation study in a San Francisco Chronicle editorial. This is the level of documentation you’d expect from a mediocre high school student, not a college graduate, let alone a tenured social scientist at a leading university.

August 12, 2012

Relative poverty is not a very useful measurement

Filed under: China, Economics — Tags: , — Nicholas @ 08:37

At the Adam Smith Institute blog, Tim Worstall explains why measuring relative poverty isn’t helpful:

Here actually is the problem with using relative poverty as a measure:

    Compared to the 1960s, China today has higher income inequality, but also incomparably lower levels of material poverty. By Brady’s definition, China was less impoverished in the near-starvation years of the 1960s than it is as an economic superpower today. According to the OECD, during the last three decades the share of Chinese living in absolute poverty dramatically declined from eight in ten to one in ten (Garroway and de Laiglesia 2011). During the same period, relative poverty, measured exactly as Brady measures it, roughly doubled. Although inequality and relative poverty are not irrelevant for measuring the well-being of a society, we should be apprehensive about a measure of poverty that is incapable of detecting the largest decline in material poverty in human history.

As pointed out, a measure of poverty that not just ignores, but actually gets the sign wrong on, the largest reduction in poverty in the history of our species is of limited value.

[. . .]

Which leads us to something of a conclusion: it’s fine to consider the distribution of incomes within a society. But we do it rather too much with the constant political obsession over relative poverty. We need to be paying a lot more attention to absolute standards of living: most especially how these change over time. Most specifically I’m thinking about the effects attempts to reduce relative poverty might affect our ability to increase absolute standards of living in the future.

August 10, 2012

Who’s more dangerous to a random American citizen, terrorists or police officers?

Filed under: Media, USA — Tags: , , , — Nicholas @ 14:56

According to Jim Harper at the Cato@Liberty blog, you’re eight times more likely to be shot by the police than killed by a terrorist:

It got a lot of attention this morning when I tweeted, “You’re Eight Times More Likely to be Killed by a Police Officer than a Terrorist.” It’s been quickly retweeted dozens of times, indicating that the idea is interesting to many people. So let’s discuss it in more than 140 characters.

In case it needs saying: Police officers are unlike terrorists in almost all respects. Crucially, the goal of the former, in their vastest majority, is to have a stable, peaceful, safe, law-abiding society, which is a goal we all share. The goal of the latter is … well, it’s complicated. I’ve cited my favorite expert on that, Audrey Kurth Cronin, here and here and here. Needless to say, the goal of terrorists is not that peaceful, safe, stable society.

I picked up the statistic from a blog post called: “Fear of Terror Makes People Stupid,” which in turn cites the National Safety Council for this and lots of other numbers reflecting likelihoods of dying from various causes. So dispute the number(s) with them, if you care to.

I take it as a given that your mileage may vary. If you dwell in the suburbs or a rural area, and especially if you’re wealthy, white, and well-spoken, your likelihood of death from these two sources probably converges somewhat (at very close to zero).

July 30, 2012

If your source data is flawed, your conclusions are useless

Filed under: Environment, Media, Science — Tags: , , , — Nicholas @ 10:30

James Delingpole on the recent paper from Anthony Watts and his co-authors:

Have a look at this chart. It tells you pretty much all you need to know about the much-anticipated scoop by Anthony Watts of Watts Up With That?

What it means, in a nutshell, is that the National Oceanic and Atmospheric Administration (NOAA) — the US government body in charge of America’s temperature record, has systematically exaggerated the extent of late 20th century global warming. In fact, it has doubled it.

Is this a case of deliberate fraud by Warmist scientists hell bent on keeping their funding gravy train rolling? Well, after what we saw in Climategate anything is possible. (I mean it’s not like NOAA is run by hard-left eco activists, is it?) But I think more likely it is a case of confirmation bias. The Warmists who comprise the climate scientist establishment spend so much time communicating with other warmists and so little time paying attention to the views of dissenting scientists such as Henrik Svensmark — or Fred Singer or Richard Lindzen or indeed Anthony Watts — that it simply hasn’t occurred to them that their temperature records need adjusting downwards not upwards.

What Watts has conclusively demonstrated is that most of the weather stations in the US are so poorly sited that their temperature data is unreliable. Around 90 per cent have had their temperature readings skewed by the Urban Heat Island effect. While he has suspected this for some time what he has been unable to do until his latest, landmark paper (co-authored with Evan Jones of New York, Stephen McIntyre of Toronto, Canada, and Dr. John R. Christy from the Department of Atmospheric Science, University of Alabama, Huntsville) is to put precise figures on the degree of distortion involved.

July 25, 2012

Michael Bloomberg’s call for a national police strike

Filed under: Law, Liberty, USA — Tags: , , , , — Nicholas @ 10:45

At the Simple Justice blog, Scott H. Greenfield explains why New York City mayor Michael Bloomberg is so very, very wrong to call for a national police strike:

There are some virtues that come with having a billionaire mayor. He’s not easy to bribe, for example, so you know whatever comes out of his mouth does so honestly. And therein lies the downside when he says something like this:

    “I don’t understand why the police officers across this country don’t stand up collectively and say, ‘We’re going to go on strike. We’re not going to protect you. Unless you, the public, through your legislature, do what’s required to keep us safe,’” Bloomberg said on CNN Monday night.

Within this idiotic comment are two fallacious assumptions. The first is the “war on cops” tripe, that there is a trend against cops, putting them at increasing risk of harm from gun-toting criminals. Radley Balko has beaten that myth to death. Mike Riggs too. It’s a good myth to further a public agenda in favor of order at the expense of law, but it just doesn’t hold water.

The second, however, is the mayor’s encouragement to police to take the First Rule of Policing a step further than ever before, to use their singular authority to hold a nation hostage. This is perhaps the most dangerous idea Bloomberg could promote.

[. . .]

Ironically, the only means of staying this armed takeover, should the police ever come to recognize that they have the power if not the authority to seize control, would be guns in the hands of citizens. No rational person could want it to come to such a battle.

So while a billionaire mayor may be above the influences that drive mere mortals, they sometimes utter the most insanely foolish things that take us to a place we must never go. The day the police, as a whole, think they can use their posts to take our government hostage is the day every citizen will need to dust off his arms. The day a billionaire mayor suggests that the police should use their power to influence our government is a day he’s been in office too long.

Update: Walter Olson at the Cato@Liberty blog:

It’s enough to make you wonder whether Bloomberg is secretly a passionate admirer of the Second Amendment and keeps saying things this outrageous from a covert intent to sabotage the case for gun control.

July 19, 2012

Choice: re-evaluating the notion that too much choice is a bad thing

Filed under: Economics, Liberty, Science — Tags: , , , — Nicholas @ 09:37

There was a famous study several years ago that supposedly “proved” that providing too many choices to consumers was worse than providing fewer choices. At the time, I thought there must have been something wrong with the study.

The study used free jam samples in a supermarket, varying between offering 24 samples and only six, to test whether people were more likely to purchase the products (they were given a discount coupon in both variants). The result was that people who sampled from the smaller selection were more likely to actually buy the jam than those who had the wider selection to choose from. This was taken to prove that too many choices were a bad thing (and became a regular part of anti-consumer-choice advocacy campaigns).

Tim Harford explores more recent attempts to reproduce the study’s outcome:

But a more fundamental objection to the “choice is bad” thesis is that the psychological effect may not actually exist at all. It is hard to find much evidence that retailers are ferociously simplifying their offerings in an effort to boost sales. Starbucks boasts about its “87,000 drink combinations”; supermarkets are packed with options. This suggests that “choice demotivates” is not a universal human truth, but an effect that emerges under special circumstances.

Benjamin Scheibehenne, a psychologist at the University of Basel, was thinking along these lines when he decided (with Peter Todd and, later, Rainer Greifeneder) to design a range of experiments to figure out when choice demotivates, and when it does not.

But a curious thing happened almost immediately. They began by trying to replicate some classic experiments – such as the jam study, and a similar one with luxury chocolates. They couldn’t find any sign of the “choice is bad” effect. Neither the original Lepper-Iyengar experiments nor the new study appears to be at fault: the results are just different and we don’t know why.

After designing 10 different experiments in which participants were asked to make a choice, and finding very little evidence that variety caused any problems, Scheibehenne and his colleagues tried to assemble all the studies, published and unpublished, of the effect.

July 15, 2012

Individual data points are less important than trends

Filed under: Environment, Media, USA — Tags: , , , , — Nicholas @ 00:06

Remember the summer of 2001? It was a media feeding frenzy on the highly appropriate topic of sharks: shark attacks in US coastal waters were the third-most reported news item. But the media was calling attention to a “trend” of increasing shark attacks that didn’t actually exist. 2001 was actually a lower than average year for shark attacks. Warren Mayer explains the similarities between 2001’s “Summer of the Shark” and 2012’s heat wave:

This summer we have been absolutely bombarded with stories about the summer heat wave in the United States. The constant drumbeat of this coverage is being jumped on by many as evidence of catastrophic man-made global warming.

[. . .]

Trend, you say? Doesn’t a 100-year high temperature in and of itself imply warming? Certainly not. I believe this will prove to be an exaggeration, but for a moment let’s assume that this heat wave has created the hottest June in 100 years for half the Continental US. That seems pretty extreme, right? But the Continental US is about 2.5% of the world’s land mass. Just by math, in a stochastic system with a stable mean, a land area of this size somewhere should have a 100-year high month about five times a year! One data point about one small patch of the Earth having a hot month tells us nothing about trends.

[. . .]

What the Summer of the Shark needed, and what this summer’s US heatwave needs, is a little context. Specifically, if we are going to talk about supposed “trends”, then we should look at the data series in question over time. So let’s do so.

July 13, 2012

Questioning the accuracy of official Chinese economic figures

Filed under: Business, China, Economics, Government — Tags: , , , — Nicholas @ 09:50

Yes, we’ve heard this several times before, and for good reason:

China’s relatively mild slowdown in the second quarter has reignited a controversy about whether its official statistics can be trusted.

Chinese growth edged down to 7.6 per cent in the second quarter from 8.1 per cent in the first quarter, and analysts said the momentum in June, from stronger bank lending to rising investment, pointed to a rebound in the second half of the year.

But rather than delivering reassurance, the numbers instead provoked questions about whether the reality is worse than the government is letting on.

Economists with Barclays noted that a deceleration in industrial production was consistent with 7.0-7.3 per cent growth. Analysts at Capital Economics said that the true figure was probably closer to 7.0 per cent.

[. . .]

Doubts about Chinese data have a fine pedigree. Li Keqiang, who is widely expected to succeed Wen Jiabao later this year as premier, confided to U.S. officials in 2007 that gross domestic product was “man made” and “for reference only”, according to a diplomatic cable published by WikiLeaks.

Earlier posts on the Chinese economy are here.

June 5, 2012

That problematic statistic: the gender wage gap

Filed under: Economics, Politics, USA — Tags: , , , , — Nicholas @ 11:57

The Washington Post on President Obama’s claim that women only earn 70 cents to each dollar earned by men (later “corrected” to 77 cents):

We were struck by the disparities in the data when we noticed that a news release by Sen. Barbara Mikulski (D-Md.) trumpeted the 77 cent figure, but it included a link to a state-by-state breakdown that gave a different overall figure: 81 cents.

What’s the difference? The 77 cent figure comes from a Census Bureau report, which is based on annual wages. The BLS numbers draw on data that are based on weekly wages. Annual wages is a broader measure — it can include bonuses, retirement pensions, investment income and the like — but it also means that school teachers, who may not work over the summer, would end up with a lower annual wage.

In other words, since women in general work fewer hours than men in a year, the statistics may be less reliable for examining the key focus of the legislation — wage discrimination. Weekly wages is more of an apples-to-apples comparison, but as mentioned, it does not include as many income categories,

The gap is even smaller when you look at hourly wages — it is 86 cents vs. 100 (see Table 9) — but then not every wage earner is paid on an hourly basis, so that statistic excludes salaried workers. But, under this metric for people with a college degree, there is virtually no pay gap at all.

There are so many different ways of slicing the data that you can “prove” almost any proposition. President Obama also claimed that African American women and Hispanic women’s wages are even worse: “64 cents on the dollar for African American women and 56 cents for Hispanic women.”

Not only did the White House pick the statistic that makes the wage gap look the worst, but then officials further tweaked the numbers to make the situation for African Americans and Hispanics look even more dire.

The BLS, for instance, says the pay gap is relatively small for black and Hispanic women (94 cents and 91 cents, respectively) but the numbers used by the White House compare their wages against the wages of white men. Black and Hispanic men generally earn less than white men, so the White House comparison makes the pay gap even larger, even though the factors for that gap between minority women and white men may have little to do with gender.

May 5, 2012

Rick Santelli goes to the white board

Filed under: Economics, Media, Politics, USA — Tags: , , , — Nicholas @ 08:59

H/T to Kate at Small Dead Animals.

April 17, 2012

Argentina’s latest economic lesson

Filed under: Americas, Economics — Tags: , , , , , — Nicholas @ 10:50

Jan Boucek explains why Argentina is providing a helpful example to other countries on what not to do in economic policy:

This week, President Cristina Fernandez de Kirchner announced the seizure of Spanish oil company Repsol’s stake in Argentine oil company YPF to give the government 51% control. Spain is outraged and has recalled its ambassador. […]

Ms Fernandez justified her move on the grounds that YPF has failed to invest sufficiently to prevent Argentina from importing ever greater quantities of fuel. The fact that Argentine oil reserves have been dwindling means the sector needs greater and increasingly sophisticated investment to reach more complex structures, just like in the North Sea. Expropriation isn’t going to attract that kind of high-risk investment.

[. . .]

The YPF seizure continues Argentina’s cavalier attitude towards other people’s money shown back in 2008 when Ms Fernandez grabbed some $24 billion of private pension funds and used central bank reserves to meet debt payments. More recently, the country has been in a spat with the IMF over the quality of its statistics. Argentina claims inflation is running at somewhere between 5% and 11% but private independent estimates put the number at somewhere around 25%. The Economist is refusing to publish official Argentine inflation data.

Update: Well, regardless of the state of the economy, President Fernandez de Kirchner has a friend in the White House! President Obama has indicated his support for the Argentinian claim to … the ¿Maldives?

President Obama erred during a speech at the Summit of the Americas in Cartagena, Colombia, when attempting to call the disputed archipelago by its Spanish name.

Instead of saying Malvinas, however, Mr Obama referred to the islands as the Maldives, a group of 26 atolls off that lie off the South coast of India.

The Maldives were a British protectorate from 1887 to 1965 and the site of a UK airbase for nearly 20 years.

April 15, 2012

Implying a link between Walmart stores and hate groups

Filed under: Business, Politics, USA — Tags: , , — Nicholas @ 11:53

This is custom-made for drawing lazy conclusions:

Study Says The More Walmarts In The Area, The More Hate Groups There Are

This one’s sure to boil some blood over at Walmart headquarters: A new study says there’s a significant correlation between the amount of Walmart stores in an area and the number of hate groups existing in that same area. As the big-box stores proliferate, so do the groups.

LiveScience.com cites the study by professors at Penn State University, New Mexico State University and Michigan State University, which says that the amount of Wal-Mart stores in a county was more statistically significant than other factors usually associated with hate group participation. For example, the unemployment rate, high crime rates and low education.

As I’m just as lazy as the others who’ll jump on that eye-catching headline, here’s another lazy conclusion: because Walmart locates their stores in areas with growing population, so Walmart stores will also correlate with any number of other phenomena that require a minimum (but increasing) population.

April 4, 2012

New study estimates US Civil War deaths were 20% higher than previously believed

Filed under: History, Military, USA — Tags: , — Nicholas @ 00:14

Guy Gugliotta summarizes the research of J. David Hacker on the actual death toll for both side during the American Civil War:

For 110 years, the numbers stood as gospel: 618,222 men died in the Civil War, 360,222 from the North and 258,000 from the South — by far the greatest toll of any war in American history.

But new research shows that the numbers were far too low.

By combing through newly digitized census data from the 19th century, J. David Hacker, a demographic historian from Binghamton University in New York, has recalculated the death toll and increased it by more than 20 percent — to 750,000.

[. . .]

The old figure dates back well over a century, the work of two Union Army veterans who were passionate amateur historians: William F. Fox and Thomas Leonard Livermore.

Fox, who had fought at Antietam, Chancellorsville and Gettysburg, knew well the horrors of the Civil War. He did his research the hard way, reading every muster list, battlefield report and pension record he could find.

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