Grey Swan

Preventative Health? Time for new Measures

Posted by Grey Swan on Thursday, August 9th, 2007

I recently canvassed several interns who are working on preventative health measures in D.C. and asked if there was any new ideas being tossed about. They said “No”. This got me thinking - with all the talk about preventing future illness, why are so few ideas tossed about in public? In order to get this [...]

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The Problem with Free College Tuition (College Wars Part I)

Posted by Grey Swan on Saturday, June 9th, 2007

Many European countries offer free education to those who want it. The idea is that education is good, and the more educated people get, the better. Since education is costly however, this is not necessarily true.
The main problem with education is that it is a partially zero-sum pursuit.
While classes in computer science and engineering may [...]

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IQ and Income

Posted by Grey Swan on Wednesday, June 6th, 2007

I used data from the National Longitudinal Survey of Youth to examine how IQ affects income. The survey takes a set of young people in 1979 (late teens to early twenties) and interviews them on a broad range of issues every few years. While surveys have continued beyond 1996, I only have data up to [...]

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The Demographer’s Folly

Posted by Grey Swan on Sunday, July 29th, 2007

Author’s Note: I have returned home from extended vacation and hope to begin frequent blogs again.

Alarmists have trumpeted the end of the world for many years. Now, a simple extrapolation of continued low fertility rates in Japan predict the last Japanese person will die around the year 2600 (give or take a few hundred years). This calculation highlights a common failure of demographers in calculating future population trends. Why? It fails to consider the individual.

It is commonly known that children born to conservative parents are likely to be conservative themselves. And vice versa. Similarly, a child born to a Christian family will almost certainly die a Christian, and not a Muslim. The point is that memes for many attributes are passed on. If you also consider that the more religious a person is, the more children they tend to have, one verifiable feature comes true - fertility is ‘passed on’ from mother to son, father to daughter.

Consider a population that has 1000 people (all twenty years old) with a fertility rate of 1, and 10 people (also twenty years old) with a fertility rate of 10. For arguments sake, assume that there is no intermarriage between these two groups, and that fertility is perfectly ‘inherited’. From a demographer’s perspective, this population has a fertility rate of 1.07. Consequently we can expect that the population will continue to drop. If we consider people’s individual preferences, there will be an initial drop off in population, followed by its rapid rise.**

While these assumptions are clearly extreme, if they hold even to a small extent (Orthodox Jews have many children, and their children have many children, etc), then worldwide fertility rates may only drop temporarily rendering future predictions upon which policy is made - like how much social welfare can be afforded - wrong.

* A fertility rate of 1.07 will yield generations of approximately 1010, 540, 290, 154, etc. Using individual preferences we find generations of approximately 1010, 550, 500, 1375.

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