RA at GovAI
Some notes on OpenAI disproving the Erdős unit distance conjecture (from a non-mathematician):
My sense is that you're right. IIRC diminishing returns are more salient for AMF than for GiveDirectly, and one of the key arguments pro GiveDirectly would be that flat returns persist longer -- but probably when they make this argument they're thinking on the scale of $100M–$1B, not hundreds of billions.
Perhaps the best case in point would be Bolsa Família: ~$30B yearly budget, one of the largest conditional cash transfer programs in the world, increased ~5-fold over the past few years, noticeably turned into a less effective program imho, but still seems like one of the most effective programs from the Brazilian government
I wouldn't think of this as a matter of thresholds but continuously decreasing returns, tho
Lighting has been getting ridiculously cheaper. And for the most part we seem to be not taking advantage of that positive externality: reducing crime through better lighting. This has been battle-tested as one of the effective ways for public security, see Chalfin, Hansen, Lerner & Parker (2022), an RCT in NYC public housing finding ~36% reductions in nighttime outdoor index crimes from added street lighting. Many, many major cities still haven't copied this at the right levels!
But we're also getting substantially negative externalities of bright lighting. Office buildings that never turn off their lights because why would they care. Apropos the new office building that just opened next to my housing. This may alimentate NIMBY spirits in me, God forbid. Kyba et al. (2017) document that Earth's artificially lit outdoor area grew 2.2% per year from 2012 to 2016, with the LED transition producing a rebound effect instead of getting savings. Jevons paradox and such.
Also, this has all sorts of annoyances. I think malls, pharmacies, and hospitals have all become much brighter since my childhood. I may be more sensorially overloaded than most people, but this does meaningfully affect my qualia, so much that Pigou himself would collect taxes from the pharmacies with dozens and dozens of LEDs, while Coase would advocate that I have the natural property right of not being assaulted with that much lumen while buying a Tylenol. This does affect wellbeing of more than just me (Cho et al. 2015). But lightly enough, ha, to not be a topic of discussion.
Hi Peter! I often see the MIT FutureTech positions, and as an economics major who is about to graduate, I would love to apply, but it's a pity they don't sponsor visas. From what I understand, this seems to be a common issue across MIT, as I’ve noticed that many of their predoc and similar positions also don't sponsor visa. I know this might not be something you can change, but it would be great if there could be options for visa sponsorship, or even remote independent contracting. In any case, I think the work you all do is fantastic!
Thanks for the answer; I think I understood your point better, but I still have a different view. You’re correct that guaranteed income can be described as a UBI with a 100% marginal tax rate on labor income up to a certain threshold. Both these policies are indeed equivalent in terms of incentives and have the same cost. However, this is quite different from the straightforward UBI that the OP was describing!
You also make a good point that most means-tested income programs are incentive-equivalent (or quite similar, though typically with more design details) to a UBI program with a less-than-100% marginal tax rate on labor income up to the threshold. This helps explain why we don’t observe such high substitution effects in practice.
That said, guaranteed income still tends to be much less costly than simple UBI. This becomes evident when comparing a low level of guaranteed income versus a low level of UBI [as defined by OP]. If you offer a guaranteed monthly income of 100 USD [or UBI + 100% marginal tax rate up to 100 USD of labor income] , some people might leave the workforce entirely, but very few would likely do so. This is much less costly than providing 100 USD to every person! The point at which their economic costs [fiscal costs + behavioral costs due to changing incentives] will be similar is largely an empirical question involving labor elasticity, reservation wages, etc.
I'm not sure I follow your argument entirely. While your thought experiment is interesting for considering substitution vs. income effects, I believe UBIs are still far more costly than guaranteed incomes.
Yes, guaranteed, means-tested incomes have some costs due to substitution effects that UBIs don't. People near the income threshold might work less or even quit the labor force to avoid losing benefits, potentially increasing program costs. UBI avoids this by giving everyone the same amount regardless of work.
However, empirically, these effects seem small. Studies on conditional transfer programs like Brazil's Bolsa Familia and Mexico's Progresa/Prospera show modest impacts on labor supply. Most find only slight reductions in work hours, if any. These aren't strictly guaranteed income programs as they have some strings attached, but they seem to be good indicators of how people might respond to similar cash transfer programs. So while the OP overlooked substitution effects, real-world evidence suggests they do not seem nearly significant enough to make guaranteed income programs comparable in cost to full UBI systems.
For reference, I think these papers from an Annual Review UBI symposium are quite good: https://www.annualreviews.org/content/journals/10.1146/annurev-ec-11
Brazil has been dealing with massive criminal wildfires for the last few weeks, and the air quality is record-breakingly bad. Besides other obvious issues (ineffective government response in going after the criminals setting fires, climate change making everything worse), hardly anyone is talking about how to deal with the immediate air quality problem. It's a bit bizarre.
People aren't widely adopting PFF2 masks and air purifiers. These remain somewhat niche topics even though pretty much everyone is suffering. To be fair, there are occasional media reports and government alerts about how to deal with the situation, but these feel too little, and one only gets them if actively looking for them.
It feels like there's potential for some serious impact if one approaches this right. It may be a severe case of availability bias, but all this is making me value air quality more as an EA cause area.
I think oftentimes the relevant counterfactual is not "this person would be doing even more impactful work in a highly-impactful area" but "this person would not be working in a high-impact area whatsoever"