General update, May 3

1. The WSJ reports,

Public-health experts generally agree that to reopen society safely, communities need widespread testing so officials can be confident that the number of coronavirus cases in the population is low and people who are positive can be quarantined.

The article is still talking about doorknob effects and how long virus can live on surfaces. Meanwhile, nobody has looked for evidence that people get the virus from surfaces.

Consider two policy objectives. One is to protect the health of people who are vulnerable, primarily the elderly in nursing homes. The other is to protect otherwise less vulnerable people from getting something worse than a mild case of the disease.

We do not have the scientific evidence to determine what is necessary or sufficient to achieve either objective. But “public-health experts generally agree” that testing is the answer. I would feel better about public-health experts if they generally agreed that it would be a good idea to run experiments and carefully evaluate hypotheses before pronouncing them.

2. Javiero is back.

First I want to focus on the Wuhan Commercial Vehicles Show (CCVS) that was held between November 1 and November 4 in the Wuhan International Expo Center. Besides Chinese manufacturers present at the show, including of course Dongfeng Trucks, foreign manufacturers present at the show included Mercedes-Benz, Scania, SAIC-IVECO, Michelin, and Palfinger.

Read the whole thing. I like his detective work. As he points out, his analysis implies that the virus was in Wuhan by early November.

Culture and consciousness

Bret Weinstein and Heather Heying appeared with Robby George to discuss an anthropological theory. They claim that it addresses two question. First, why do humans occupy many ecological niches, rather than just one. And second, why did consciousness emerge.

The answer that they offer is that humans adapt to many niches. In order to do so, they have to be able to innovate. In order to innovate, they need to brainstorm and to test out new ideas. In order to do that, we need to have an ability to recognize the minds of others and our own minds, which requires consciousness.

The wisdom that we accumulate gets embodied in culture. Culture is a conservative force, one that works well in stable environments. Consciousness is an adaptive force, one that works well in novel environments. In a stable environment, we should not disturb Chesterton’s fence. In a novel environment, perhaps we should.

Control without information

One can think of government as playing two roles in the virus crisis. One role is to exercise control, meaning giving orders. The other role is providing information, including reliable data and analysis. My criticism of government can be summarized by saying that it has been too eager to use control, while in the area of information it has been derelict and incompetent.

Here is what I would do if I were in charge of the CDC.

1. I would have one unit focused on providing consistent, accurate information about deaths. Deaths would be reported by date of death. Deaths would be reported in categories: deaths with no relationship to the virus; deaths of people with the virus but caused primarily by pre-existing conditions; deaths that were caused by a combination of pre-existing conditions and the virus; deaths that were caused primarily by the virus. The CDC reporting unit would give clear guidance to health care workers on how to do this classification. Trends would be reported by age and by institutional status (nursing homes, prisons) as well as by geographic area.

2. I would have another unit charged with determining the prevalence of the virus. As you know, there are two types of tests, one for whether someone currently has the virus and another for someone has the antibodies to the virus. For each of the two types of test, the testing unit would use the testing procedures with the highest reliability, including re-testing people if that reduces classification errors. It would use stratified random sampling.

3. I would abandon all models that work with a single spread rate or a single infection fatality rate. Instead, I would work with the Avalon Hill metaphor and have a unit evaluate hypotheses relative to that metaphor. Some of these hypotheses can be tested using healthy volunteers willing to expose themselves to possible infection. Others can best be evaluated by studying cases of infection events and deaths. The idea is to better predict what happens in an encounter between an infected person and a person at risk of becoming infected.

This unit of the CDC would focus on how both the probability of infection and the severity of disease are affected by the following factors:

4. Characteristics of the person at risk for becoming infected. age; and pre-existing conditions, including obesity. (This cannot be tested experimentally, but the cases that we have seen could be evaluated more closely.)

5. Extent of symptoms of the infected person.

6. Type of contact between the infected person and the person at risk.

7. Duration of contact between the infected person and the person at risk.

8. Distance between the infected person and the person at risk.

9. Masks. Neither person uses a mask; only the person at risk uses a mask; only the infected person uses a mask. Both use masks.

10. Whether contact takes place indoors or outdoors.

My first choice would be for government to provide information on these factors and let individuals and businesses make decisions based on this information. My second choice would be for government to obtain this information and issue orders to citizens based on this information. The current state of affairs is that government issues orders without this information. As I see it, exercising control without information is the least desirable role for government.

General update, May 2

1. Thomas Meunier writes,

While new medical treatments proposed to cure COVID-19 cases are required to be validated through controlled double blind studies, the benefits and risks of social distancing strategies are not subject to any comparative tests

we show that the available data exhibit no evidence for any effects of the full lockdown policies applied in Italy, Spain, France and United Kingdom in the time evolution of the COVID-19 epidemic. Using a phenomenological approach, we compare the evolution of the epidemic before and after the full lockdown measures are expected to produce visible results. Our approach … is focused on incident rather than cumulative data, and it compares pre-lockdown and post-lockdown trends. However, here, no positive changes are noticed in the trend of the daily death growth rate, doubling time, or reproduction number, weeks after lockdown policies should have impacts.

That is certainly the case with U.S. data on death rates.

Lockdowns have achieved a theatrical purpose. They allow politicians to pose as powerful leaders implementing a cure for the virus.

Pointer from John Alcorn.

2. A study by R.E. Field and others of a cohort of 500 COVID-19 patients at a London hospital. Many interesting findings, including

When the outcome of the ventilated patients is viewed by age and gender … no female over the age of 60 has yet left the intensive care unit alive and nomale over the age of 50 has left the intensive care unit alive.

Another pointer from John Alcorn.

The Cowen-Weyl interview

I enjoyed the transcript of Tyler Cowen’s talk with Glen Weyl more than I expected. One part:

COWEN: Look at Robin Hanson. Robin, to me, is rebelling against hypocrisy. I think he even might agree with that. What are you rebelling against?
WEYL: I think I’m most deeply rebelling against the separation between the role of the expert and the role of the politically engaged person. I grew up wanting to be a politician for long periods, and also wanting to be a physicist for long periods, and I’m deeply frustrated by the ways in which these things are these separate and contradictory roles in our society. I’m struggling to straddle the divide.
COWEN: Well, that’s a good answer. But if you had to boil it down to something more foundational, what institutional failure or what personal quality lies behind that? What would that be? Why do we screw that thing up?
WEYL: Singular identity is one way of putting it. Many people who are economists think they’re an economist. Many people who think that they’re libertarian think they’re libertarian. Every identity that I’ve been part of, that I thought I believed in, ended up having so much corruption entwined in it, and ultimately, it’s the plurality and intersection of those things where I find meaning.

I would say that in the realm of public intellectuals, I rebel against engineers and admire epistemologists. I distrust people who come up with clever engineering solutions to problems, such as test, track, and trace for the virus crisis. For me, an epistemologist is someone who constantly wrestles with the issue of what is true.

A non-epistemologist relies on a simple heuristic, like trusting what they read in their favorite media outlet, or looking for a “consensus of the experts.” An epistemologist asks how such a consensus was tested and why it has been preserved. If the sociology of the domain is such that the high-status people have the incentive and means to bully everyone else into submission, then the “consensus of the experts” is not all that reliable.

General update, May 1

1. Jeremy Samuel Faust writes,

there are little data to support the CDC’s assumption that the number of people who die of flu each year is on average six times greater than the number of flu deaths that are actually confirmed. In fact, in the fine print, the CDC’s flu numbers also include pneumonia deaths.

His point is that deaths from the flu in past years are greatly overstated. This reinforces the intuition that the novel coronavirus is worse than the flu.

2. Culture of looting watch, from the WSJ

housing activists in at least 15 cities, including New York and Chicago, are organizing rent strikes. They are calling on tenants to withhold May payments in hopes of provoking federal and state lawmakers to provide more financial support for renters.

3. Ricardo Reis looks to the period right after World War II as a precedent for how fiscal and monetary policy were entangled and then unentangled.

There comes a time when the central bank says that it should be focused on controlling inflation and no longer just on trying to keep rates low just to finance the debt. The finance ministry, of course, does not like that because now its job is going to be much, much harder. Potentially it’s going to have to deal with high interest rates, especially if it does not behave responsibly with respect to its deficits. As a result, this conflict arises. The Accord was, if you like, the peace treaty.

Pointer from Greg Mankiw. The interview with Reis is broad, recommended.

The accord to which he refers is a 1951 agreement that allowed the Fed to set a more independent course, raising interest rates. That was easier to do then, because the government had stopped deficit spending when the war ended.

4. A commenter pointed to a post by editors of The New Atlantis about the extreme differences across states in death rates. I’m not necessarily with them on the analysis, but I pass along the link because the map charts are eye candy.

Micro experiments and macro experiments

We have a moral revulsion to doing controlled experiments on small groups of people. Yet we have no problem conducting uncontrolled experiments at large scale.

Consider the California governor’s order to close public parks and beaches. We are unlikely to learn anything from this experiment.

A controlled experiment would start with two sets of healthy young people. Some would stand outside in a setting where there is an infected person. Others would stand outside where there is not an infected person. Still others would stand inside where there is an infected person. And others would stand inside where there is not an infected person. We would compare outcomes.

Many people would find this idea repulsive. Yet we would learn something from it.

Years ago, I noticed the same thing about education. I happened to be seated at dinner next to a high-ranking career official in the Department of Education. I asked why educators rarely used controlled experiments to determine the efficacy of alternative methods. He said, “Would you want your child to be the subject of an experiment?” My jaw dropped. “They do it all the time!” was my reply. “They just don’t do it rigorously/”

Schools were often introducing new variations in curriculum. Like the decision to close the beaches, these were arbitrary changes based on intuition, with no plan to learn whether or not they were effective. Tampering, as W. Edwards Deming would call it.

Markets allow society to test the behavior of entrepreneurs. The social mechanisms for testing the behavior of politicians do not work nearly as well.

The digital economy and the tangible economy

A reader asks whether inflation might be attenuated in a digital economy. If people spend more on downloading movies, the price charged by the streaming services does not have to rise, because they have high fixed costs but low marginal costs.

Suppose that the economy consists of food and movie downloads. As the government prints money, food prices go up. As the price of food goes up, the movie streaming services must raise their prices, or else their incomes will fall in real terms. So I think that money still causes inflation, even if some of the economy is digital.

3DDRR update, April 30

1.14 overall, 1.18 excluding New York. Definitely not headed in the right direction. If I were deciding whether to lift economic restrictions based on “criteria” pertaining to the spread of the virus, then I would not.

I would lift economic restrictions based on a view that the externalities are not so large. If you open up your barber shop or restaurant, nobody has to patronize you unwillingly. There is no ventilator shortage. Hospitals seem to have unused capacity due to restrictions on caring for non-Covid patients.

Anti-fragile Arnold wears a mask and wants to see others wear masks. But he does not feel threatened by other people making choices to go to work or stores or parks or beaches.