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Category: Politics

Experiments in Political Science

Two interesting articles were published within a few days of one another last week on the topic of experimental methods in political science.

The first article is by Jasjeet S. Sekhon and Rocio Titiunik in the American Political Science Review, and it discusses the uses and misuses of natural experiments:

Natural experiments help to overcome some of the obstacles researchers face when making causal inferences in the social sciences. However, even when natural interventions are randomly assigned, some of the treatment–control comparisons made available by natural experiments may not be valid. We offer a framework for clarifying the issues involved, which are subtle and often overlooked. We illustrate our framework by examining four different natural experiments used in the literature. In each case, random assignment of the intervention is not sufficient to provide an unbiased estimate of the causal effect. Additional assumptions are required that are problematic. For some examples, we propose alternative research designs that avoid these conceptual difficulties.

In other words, many of the natural experiments found in the literature do not allow identifying causal effects, and the authors do a good job of providing examples of four published natural experiments whose findings they question. The findings in Sekhon and Titiunik’s article apply to some regression discontinuity designs as well.

Does President Obama Understand the Forces of Globalization?

(Note: I wrote this post last Sunday, long before last night’s State of the Union speech. For my reactions to the State of the Union, see my Twitter feed.)

When I was about 20 and in college in Montreal, I bought Verbatim, by Jacques Attali, an economist who, among other things, served as special advisor to French President François Mitterrand. The book is a memoir of Attali’s time at the Élysée.

Verbatim opens with Mitterrand’s election in 1981, when the Western world was experiencing a recession. Early on in his presidency, Mitterrand asks Attali: “Why aren’t we making VCRs in France?,” implying that France should be making VCRs.

I hadn’t taken a single college-level class at that point, but I still realized that Mitterrand’s question was an astonishing display of economic illiteracy.

Fast forward to last Sunday, when I read the following article on the front page of the New York Times:

When Barack Obama joined Silicon Valley’s top luminaries for dinner in California last February, each guest was asked to come with a question for the president.

But as Steven P. Jobs of Apple spoke, President Obama interrupted with an inquiry of his own: what would it take to make iPhones in the United States?

Not long ago, Apple boasted that its products were made in America. Today, few are. Almost all of the 70 million iPhones, 30 million iPads and 59 million other products Apple sold last year were manufactured overseas.

Why can’t that work come home? Mr. Obama asked.

Mr. Jobs’s reply was unambiguous. “Those jobs aren’t coming back,” he said, according to another dinner guest.

The article is a great read, but I really am at a loss as to what to think about the President’s question.

On the one hand, he might understand economics and know that those jobs are not coming back, but he might have asked the question so as to be perceived as caring about creating jobs in the US.

Color me cynical, but my belief that the President is a very smart man — I would have voted for him if I could vote in this country, and my wife not only voted for him but contributed to his campaign — has a hard time co-existing with the belief that his question might have been asked in earnest, so my mind defaults to “he was just politicking.”

On the other hand, he might completely misunderstand economics, and just how powerful the forces of globalization are.

If the President’s question was asked in earnest, we are in trouble. Those jobs are indeed not coming back. Much like the US economy went from being an agrarian economy to being a manufacturing economy in the 19th century, the US economy went from being a manufacturing economy to being a service and research and development economy in last quarter of the 20th century.

We are at a point in history where our comparative advantage lies in the tertiary and quaternary sectors of the economy. Forget secondary-sector jobs. Those went the way of the dodo sometime in the 1970s. Let’s focus our attention on developing the services and research and development sector of the US economy rather than lamenting the disappearance of agricultural and manufacturing jobs.

Getting those manufactured jobs back would mean that the US economy is regressing and that real incomes are not only stagnating, but decreasing more than they already did. If that is truly what the President wants, he should prepare for a revolution.

 

Guns or Butter?

There is no way over the long term that Americans will be or should be prepared to endure greater relative poverty in a free trading world when they also have to pay almost the entire cost of global order and stability required to uphold it. There comes a point at which the Western Man’s burden becomes being taken for a ride. For the US to deny its seniors medical care, to sleight its infrastructure renewal, and depress investment in the economy in order to keep the global economy militarily stable for China and India and Europe (…). It makes no sense. We have to move back from a Department of Offense and Empire to a Department of Defense and Security. We need to let go of paranoia. The cycle of fear has already done immeasurable damage to the Constitution, the economy and regional stability and security (watch Iraq and Afghanistan implode in the next few years).

Andrew Sullivan, in a post over at the Daily Dish in which he discusses Ron Paul’s approach to foreign policy in a multi-polar world.

Andrew’s post reminded me of a conversation I had with a colleague when I traveled to Israel a few years ago to give a talk.