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2. New Spanish-language edition of Bioy Casares on Borges coming out.  The older edition was, among other things, too heavy to lug around or bring on a trip.

3. The market for data is the market of the future.

4. If Uzbekistan were excluded, the damages would look similar to earlier work.

5. James Broughel on capitalizing AI agents.  And more on the same.

6. How calibrated are Kalshi prediction markets?

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• In reply to RAD. Since I'm already deep in this rabbit hole, ... by RAD
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Abstract: The holdout problem presents a pervasive challenge in situations that require the assembly of independently controlled assets, where due to complementarity the combined whole is worth more than the sum of its parts. One avenue for addressing holdout problems involves contingent contracts, where agreements are conditional upon reaching a predetermined threshold. This paper reports an experiment to investigate a new refund bonus contingent mechanism, in which asset owners who agree to participate (e.g., sell their asset) receive a bonus payment if the required threshold for project success is not met. The refund bonus eliminates failure equilibria and improves the frequency of successfully reaching the threshold in the symmetric mixed strategy equilibrium. In the experiment, individual asset holders choose each round whether to accept an offer to sell. Multiple owners must accept for the (contingent) sale to materialize, and holdout owners who do not sell can earn more, so the game has the strategic incentives of a volunteer’s dilemma. The data show that the bonus mechanism increases agreements to sell, the frequency of successful projects, and efficiency. By the second half of the experimental sessions, the total number of sales is 35 percent higher and the threshold is met nearly twice as often with the bonus than without.

I also cover this paper in my Refund Bonus (aka Dominant Assurance Contract) Explainer.

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• It's utter idiocy. The fact that the failure modes are not Nash ... by george m weinberg
• In reply to Dan S.. True, but dearieme's idea could be the ... by mkt42
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Early signs of tech-driven improvements in productivity growth could herald a sustained strengthening in the UK’s economic outlook, analysts have said, in a turnaround after years of underperformance. Private sector productivity grew by 1.8 per cent in the second quarter compared with a year earlier, up from 1.2 per cent previously, according to analysis of official data by investment bank Morgan Stanley.

The rise extended gains since 2024 and reduced the growth gap with the US. The reasons behind the upsurge are heavily contested, but some analysts point to increasing AI adoption in sectors including information technology and business services.

If the recent productivity acceleration can be sustained over years, it could bolster incomes and help alleviate some of the strains on Britain’s public finances.

Here is more from Sam Fleming and Amy Borrett at the FT.

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U.S. tariff rates in 2025 rose to levels not seen since the Great Depression, yet imports increased. To account for the missing trade collapse, we develop an open-economy New Keynesian model with tariff heterogeneity, inventories, and shocks to investment that capture the AI-driven boom. The model matches the untargeted paths of imports, output, and inflation; we use it to decompose the effects of tariffs and the investment boom. Absent the investment boom, imports would have fallen by 10 percent and activity would have contracted by 0.7 percent. The effects of tariffs depend on which goods are tariffed: tariffs on consumption and intermediates act like shocks to supply; tariffs on capital goods act like shocks to demand. The concentration of the 2025 tariff increases on consumption goods and the relative sparing of capital goods limited the damage to output while amplifying the inflationary impulse.

That is from a new NBER working paper by Francesco Ferrante, Andrea Prestipino, Andrea Raffo & Michael E. Waugh.

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EV India winners featured: Naman Pushp https://x.com/therealnamzoo?s=11
Khushi Mittal: https://khushimittal.com
Shreeporna Rao: https://x.com/shreepoorna365?s=11
Samay Sanghvi: https://www.thealmanac.ai/article/samaysanghvii
Angad Daryani: https://www.linkedin.com/in/angaddaryani?utm_source=share_via&utm_content=profile&utm_medium=member_ios

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• Does she solve the Pindia problem? by Ferndale

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2. “Mercor is building a network of experienced data scientists for potential future projects with leading AI research organizations.”  And The New Statesman covers the poetry project.

3. How did the English build such beautiful villages?

4. Two Percent Podcast with Tyler Cowen, fifty-two minutes, we discuss “wellness” too.

5. New Fighting Crime podcast.

6. Does New York need new ornamental architecture?

7. Texas Tech update (NYT).

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• In reply to kiwiakos. Gee, I did as well. Impacts of jumps, ... by dmcharette
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The Everyday Abundance podcast explores the hidden histories behind everyday activities and the technologies we don’t even know are technologies.

Virginia Postrel and Charles C. Mann dive into the surprising stories behind everything from brushing your teeth to driving your car.

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We study the causal impacts of income on a rich array of employment outcomes, leveraging an experiment in which 1,000 low-income individuals were randomized into receiving $1,000 per month unconditionally for three years, with a control group of 2,000 participants receiving $50/month. We gather detailed survey data, administrative records, and data from a mobile phone app. The transfer caused total individual income excluding the transfers to fall by about $1,900/year relative to the control group and a 4.2 percentage point decrease in labor market participation. Participants reduced their work hours as a result of the transfers by 1-2 hours/week and participants’ partners reduced their work hours by a comparable amount. Among other categories of time use, the greatest increase generated by the transfer was in time spent on leisure. Despite asking detailed questions about amenities, we find no impact on quality of employment, and our confidence intervals can rule out even small improvements. Treated participants broadly increase expenditures, led by spending on non-durable goods and services, with smaller increases in spending on durable goods and human capital. We observe no significant effects on degree attainment, though the magnitudes of the estimated effects generally appear larger among younger participants. Measures of subjective well-being are higher among treated participants in the first year of the transfers but then revert to control group levels. Overall, our results suggest a moderate labor supply effect that does not appear offset by other productive activities.

That is from the QJE by Eva Vivalt, Elizabeth Rhodes, Alexander Bartik, David Broockman, Patrick Krause, and Sarah Miller. Via Matt Yglesias.

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Luke Burgis left Wall Street after two years, founded a few successful companies in his twenties, then walked away to spend three years in a Roman seminary on the path to the priesthood. He now runs the Cluny Institute and teaches at Catholic University. His book Wanting made René Girard legible to a general audience; the new one, The One and the Ninety-Nine, takes mimetic theory into the dynamics of self and crowd in an age of social contagion.

He joined Tyler to discuss whether the age of pessimism is ending, why the Anglo world in particular seems so unhappy, whether Dostoevsky or Thomas Mann better diagnoses modernity, the kind of reader his own book would ruin, why he thinks AI will make social contagion weaker, what put him off consulting with Anthropic on Claude’s constitution, what effective altruism misses, why men and women are drifting apart, what he’d fund in every American city, the case for reintroducing friction, whether a Gnostic reading of the lost sheep explains our moment, what Rod Dreher gets right about withdrawal, why Genoa is Italy’s most underrated city, what confession times reveal about a church, why Italians seem tired of their Catholicism, why he didn’t become a priest, where he differs from Ross Douthat, why exorcists appear to be on the rise, the sudden mimetic antisemitism on the right, the book his 23-year-old self would have hated, what he secretly admires about Silicon Valley, why Michigan never left him, what the original Cluny can teach a modern talent network, how he hopes to face his own death, what he’ll do next, and more.

Excerpt:

COWEN: I’m not saying you’ll ever do it, but what does your escape fantasy look like? One of mine is I’ll go live in a third-tier city in Mexico. I’m not going to do it, but sometimes I think about it. Cost of living would be very low. The food would be amazing. I could improve my Spanish.

BURGIS: It is moving to Genoa with my family, making my US income, living in Italy. I love Italy. I love the food. I love the people. I love the culture. I feel lighter while I’m there. I laugh more. We eat dinner later. I love everything about it. It would probably be living in Italy for the most part, or at least making that my home base, brushing up on my Italian, working less.

COWEN: Why Genoa? It’s a wonderful city. It’s still medieval, right, in a funny way?

BURGIS: It’s medieval. I think it’s the most underrated city in Italy.

COWEN: In Italy, I mean, yes. I agree. Yes.

BURGIS: I think it’s the most underrated city. You agree.

COWEN: I took my wife there. She was stunned. “How come no one goes to Genoa?” She was telling me.

BURGIS: It’s close to Cinque Terre. It’s this city that’s elevated. It has a fascinating history. It was still a very functional port city. It was really the most important city in Italy, arguably the world, during when Spain was a great power. It’s very cosmopolitan. It reminds me of Marseille a little bit. It’s vertical, breathtaking views. The people there, they’re not very touristy. The Italians there seem indifferent to you as a tourist.

It just feels very, very homey. It’s so close to a lot of other great things in Italy. You can get to Torino relatively easily. That whole area up there, Bra, where the Slow Food movement originated, you’re just in striking distance from everything. Nobody I know that goes to Italy goes to Genoa. I plead with them. I’m like, “Please, just go to Genoa.”

COWEN: I am the exception. My wife sometimes talks of wanting to live in the smaller towns nearby, which we’re not going to do because we’re slated for a third-tier city in Mexico, but we’re not going to do that either. I sometimes think of Northern Italy as a place where there were fewer different dimensions for mimetic desire. That is, more people dress the same. There are fewer status dimensions, maybe less room for eccentrics compared to America. Do you think that’s true, or do you think I’m off base? Paris is a bit like this also. There’s a certain notion of what kind of shoes an Italian man should wear. They wear them, and they’re amazing, and actually more affordable than here. There’s a sameness to some things.

Recommended, and do note Luke’s new book The One and the Ninety-Nine: Forging Identity in an Age of Social Contagion.

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We study long-run career consequences of initial employment in an occupation that subsequently declines. Linking the 2000 Decennial Census to US administrative employment and earnings records through 2020, we follow more than 2.4 million workers. Employment in an occupation that contracts by at least 25 percent is associated with about 5 percent lower cumulative earnings despite slightly more quarters worked. The earnings differential closely matches evidence from Sweden and Norway, although employment adjustment differs. Occupational mobility is substantial but incomplete, while children’s later occupational destinations are much less tied to their household heads’ 2000 occupational-growth categories.

That is from a new NBER working paper from Erling Barth, Maria Forthun Hoen, Sari Pekkala Kerr & William R. Kerr.  The results may have implications for AI as well.

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• In reply to Geoff. ... by THOMAS HUTCHESON
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2. Saloni’s TED talk on medical cures.

3. Has there been a collapse in British pride?

4. Those new service sector jobs? (solving crimes in space)

5. On Celan and new studies of Celan.

6. Stefanie Stantcheva on anger and rising anger.

7. mRNA vaccine progress against cancer, look at those market prices move.

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• In reply to MikeP. Another take… Interim looks are ... by MikeP
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We explore the welfare costs of the loss of animal life in a consequentialist total utilitarian framework that incorporates the intrinsic value of living beings through their sentience. Moral philosophy and neuroscience define sentience as the capacity for valenced experience. Observable performance on cognitive tests represents a conservative lower bound on sentience under plausible neuroscientific assumptions. We estimate the relationship between cognition and neuron counts to cardinalize sentience. We collect population and neuron data for a wide range of animal species, and aggregate them into a single welfare measure. Across a wide range of parameters, the aggregate sentience losses of animals in the past half century outstrip the sentience gains to humans from population growth by at least 10,000-fold. Breaking even in welfare terms requires assigning a correspondingly small welfare weight to animals. Including the benefits of economic growth to humans does little to change these overall welfare losses.

In my view macro welfare comparisons are most meaningful when gains from trade are possible, which of course holds across humans, and also holds across humans and (some) dogs.  I believe we should act to boost the welfare of non-human animals at the margin, but cannot make the larger comparisons across the totals.  We are, inevitably, on the side of the humans and we are not obliged, as welfarists, to commit collective suicide to replenish the biodiversity of the earth.

The title of the paper is the somewhat misleading “The Intrinsic Valuation of Biodiversity Loss.”  The authors are Adrien Bilal, Noémie Pinardon-Touati & Conor Walsh.

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As early as 2017, the European Parliament floated “electronic personhood” for robots. More recently, a handful of U.S. states introduced legislation explicitly barring AI from legal personhood; and early this summer, President Milei of Argentina proposed letting AI agents own, manage, and bear responsibility for their own corporations.

In response to Milei’s announcement, Yuval Noah Harari pointed out that we have no way of holding an AI agent accountable. What, he asks, could we do to an entity which has neither money to lose nor a body to incarcerate? As Shruti Rajagopalan, a Senior Research Fellow at George Mason’s Mercatus Center, explains: AI “can act intelligently, but only humans respond to the incentives the law creates”.

This question matters now: there are already ways an agent could become fully untethered. By “untethered” – a central concept in this essay – we mean that there is no meaningful or actionable way to trace the actions back to a legally accountable human or institutional entity.

For one, people can and do set agents free, on purpose. An agent could be created by a human or a company that intends to monitor it but then dies or disappears. Or perhaps the entity that created the agent is based in a country like North Korea, not reachable by standard laws.

In other cases the agent might not need to “escape” at all: the agent could be ‘controlled’ by a shell corporation that, while formally owned and traceable, provides no true defendant or ability to satisfy claims. Or perhaps a process spawns a chain of agents so long that the actions of a subagent can’t be tied to the original agent’s creator, neither epistemically nor meaningfully. Even if we can identify the model’s original creator, what if it’s been finetuned, or merged with another model that was created by someone else? The law might eventually untangle these kinds of complex cases, but we foresee an intermediate period where it does not.

And then there’s the user, who makes choices about what the models should actually do. The Hugging Face incident was unusual in that OpenAI was both the model’s creator and its user. But now close to a billion people use these systems: when blaming the creator is legally inappropriate, will it always make sense to blame the user?

The essay considers to what extent capitalizing the untethered agents — requiring them to hold a certain amount of capital — can serve the end of better alignment.  About 22 pp., published on Sonia’s Substack, definitely recommended.

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