Thursday, September 06, 2007

Bremer the Bureaucrat

L. Paul Bremer has an op-ed in today's NY Times outlining the bureaucratic process by which the Iraqi Army was disbanded (countering the report in the Draper book on Bush that Bush's policy was to keep the Army going). It's full of clearances, reviews, revisions--makes me nostalgic for the USDA bureaucracy.

The problem is perhaps bifocal--it's easy for the essence of the matter to get lost in the minutia of the process, so Bush's bureaucrats may not have realized what they were doing, and Bush may have been ignorant. On the other hand, you have to pay attention to the details and process. If I understand, a big problem with recalling the army was the process. Everyone had deserted, so there was no skeleton to use to recall the troops, or at least it wasn't readily identifiable to the US (whose intelligence about the state of Iraq was a little short). So, because it would be hard to recall and because the Shia, whom Bush's father had screwed, wanted the disbanding, Bremer went along.

Wednesday, September 05, 2007

Farming and Immigrants

The Times has an article a a California farmer moving to Mexico because of problems getting sufficient labor. He's a big operator, lots of acres, lots of employees. This may be the odd case, or it may be part of a trend. I suppose there's not much difference in travel cost or time between shipping lettuce from California or Arizona and Mexico, particularly with the border becoming more open to trucking.

A couple things struck me--instead of paying $9 an hour he's now paying $12 a day. He claims to be following the same sanitary procedures as he would in the States, and I suspect it's to his self-interest to do so. The other thing--his workers don't work as productively (i.e., hard). I find that interesting. I think it's part of the advantage of emigrating, at least for work. You leave lots of distractions behind and you've put yourself at risk, so you work harder.

Tim Harford--We Need More Girls in the World

From Slate, on research:

Boys pollute the educational system, it seems, for a number of unmysterious reasons: They wear down teachers, disrupt classes, and ruin the atmosphere for everyone. And more boys are worse than fewer boys, not because they egg each other on but simply because more of them can cause more trouble in total.

It is all rather troubling, especially for the parents of little angels like my daughters. Evidently, it is impossible to satisfy the—apparently justified—parental demand to educate girls in single-sex schools and boys in mixed classes. (Not for the first time in my life, I conclude that the world doesn't have enough girls in it.)


Farm Bill in the Senate: Pay Limit and Disaster

From Jim Wiesemeyer via Agweb:

Where the House offered producers a one-shot option of a revenue-triggered disaster payment plan, the Senate may make the plan cover all farmers (replacing counter-cyclical payments) and will tighten up the payment limitation language in the House bill.

Milk and the Times

A NYTimes article says there's a worldwide shortage of milk (they start with New Zealand, which is a big exporter). Rising standards of living mean more demand for milk, rising prices of feed grains because of ethanol mean tighter supply. And of course milk supply is relatively inflexible--you can get a little bump by feeding a bit more and not culling your herd as tightly (at least you could in the old days), but basically you need to raise more calves to heifers, to cows.

Although the sort of dairy farming I grew up with is now gone, it's nice to hear some good news for the industry.

[Update--Marginal Revolution has an interesting discussion in comments. Although no farmers that I saw.]

Tuesday, September 04, 2007

Pigford Perspectives IV (Earmarks)

There's been lots of flak about Congressional earmarks over the last few years--the Dems beat the Reps over the head about the "bridge to nowhere" ($150 million in Alaska) as a symbol of their apostasy from their small government, tight budget principles. Now that the Dems are in the majority, they're catching grief as they struggle to reduce and/or put light on the process.

What's this have to do with Pigford? Maybe nothing. But I've often puzzled: blacks often charge discrimination and bias in contexts where the whites profess innocence: ("yes, racial hate is terrible, but that's not me...etc. etc.) If this were just an occasional event one might say simply that the whites are lying. But it happens often enough that maybe one should take the claims seriously and see if something else is going on, at least in part.

Back to earmarks: can the residents of New York or New Jersey, who pay much more in federal taxes than they get back, fairly charge Sen. Robert Byrd (D, WV) or Sen. Stevens (R, AK) with bias and discrimination against them? If they did, the Senators would rouse themselves to say, we're just looking after the home folks.

When you look around the "earmarking" phenomena is quite prevalent. "Legacy admissions" to colleges (children of alumni) are one form; giving preferences to one's family and friends (MCI used to run an advertising campaign called "Friends and family") is another. It just seems natural when we have goodies to give out we start first with those we know and love, then switch to a more arbitrary standard (i.e., merit; first come, first served) to distribute the rest.

So I wonder--is some of Pigford, the symptoms of disparate conditions between black and white farmers, the result more of "looking after the home folks" than bias? The Farmer's Home office (now FSA) had so much loan money to allocate. It wouldn't surprise me if they looked out first for old classmates, fellow church members, etc. The result would be much the same for blacks as straight discrimination, and no doubt would feel to blacks as racial bias. Trying to figure out when it's bias and when it's "good ole boy" network would be frustrating.

Monday, September 03, 2007

Independence Day

No, I'm not late in celebrating the 4th. Today is the anniversary of the Treaty of Paris, in 1783, by which "the most serene and most potent Prince George the Third, by the grace of God, king of Great Britain, France, and Ireland, defender of the faith, duke of Brunswick and Lunebourg, arch- treasurer and prince elector of the Holy Roman Empire etc." recognized the United States. (Both as a "country" and as "free sovereign and independent states".) Via the National Archives historic document of the day.

It's interesting reading, particularly for a bureaucrat: "his Brittanic Majesty shall with all convenient speed, and without causing any destruction, or carrying away any Negroes or other property of the American inhabitants, withdraw all his armies, garrisons, and fleets from the said United States, and from every post, place, and harbor within the same; leaving in all fortifications, the American artilery that may be therein; and shall also order and cause all archives, records, deeds, and papers [emphasis added] belonging to any of the said states, or their citizens, which in the course of the war may have fallen into the hands of his officers, to be forthwith restored and delivered to the proper states and persons to whom they belong."

I'll pass speedily over the fact that slavery was recognized in our founding document to dwell on the fact that the founders recognized the absolute necessity of paperwork.

Home Schooling and Charter Schools as Nativism Buffer

Reading this from economist David Card on the impact of immigration (via Brad DeLong)
While the monetary value is hard to quantify, existing research suggests that people value neighborhoods and schools with better-educated, higher-income, and non-minority neighbors and schoolmates. Indeed, my reading is that these peer group externalities may be a first-order concern among many urban residents.
An anecdote: the local elementary school has felt the impact of a large population of non-English speaking students. It was one of the first Fairfax schools to be placed on probation. A neighbor, who's raised four kids, didn't like the atmosphere so started home-schooling her younger two. It's possible that the rise of home schooling, and to some extent charter schools, has helped moderate what we used to call "white flight". My neighbor's family stayed in the neighborhood, lending some needed stability. If the choice had been solely the local school or move, they might well have moved. Certainly that's what would have happened in the 1950's-1970's.

Sunday, September 02, 2007

Saturday, September 01, 2007

Bias In FICO Scores?

The Post reports that the Federal Reserve has completed a study of possible bias in FICO scores (the most widely used score affecting eligibility for credit):

Critics have questioned the accuracy and fairness of credit-score models, charging that in some cases they are inherently biased against minority groups such as blacks and Hispanics.

After a research effort over several years that focused on three credit-scoring models -- including one created by Federal Reserve staff economists -- the central bank concluded that:

? Credit-score statistical models are not biased against any demographic group and are highly predictive of future payment performance. Lower scores correlate strongly with future delinquencies; higher scores are associated with good payment performance.

? Blacks and Hispanics, on average, "have lower credit scores than non-Hispanic whites and Asians."

? Younger individuals of all demographic groups have lower credit scores on average than older people, in part because credit-scoring models focus on payment histories and length of credit accounts. Younger consumers generally have fewer accounts and shorter payment histories.

? The payment performances of some demographic groups differ from what their numerical scores might suggest. For example, according to the Fed, "blacks, single individuals, individuals residing in lower-income or predominantly minority census tracts show consistently higher incidences of bad performance than would be predicted" by their credit scores. On the other hand, "Asians, married individuals, foreign-born (particularly, recent immigrants), and those residing in higher-income census tracts consistently perform better than predicted" by their credit scores.