IQ in the Ramsey Model: A Naive Calibration

I show that in a conventional Ramsey model, between one-fourth and one- half of income differences across countries can be explained by a single factor: The steady-state effect of large, persistent differences in national average IQ on worker productivity. These differences in cognitive ability--which are well-supported in the psychology literature--are likely to be malleable through better nutrition, better education, and better health care in the world’s poorest countries. A simple calibration exercise in the spirit of Bils and Klenow (2000) and Castro (2005) is conducted. According to the model, a move from the bottom decile of the global IQ distribution to the top decile will cause steady-state living standards to rise by between 75 and 350 percent. We provide evidence that little of IQ-productivity relationship is likely to be due to reverse causality.Economic Growth, Intelligence, IQ, Ramsey.

Volatile Interest Rates, Volatile Crime Rates: A new argument for interest-rate smoothing

Good monetary policy requires estimates of all of its effects: monetary policy impacts traditional economic variables such as output, unemployment rates, and inflation. But does monetary policy influence crime rates? By extending the vector autoregression literature, we derive estimates of the dynamic effect of higher interest rates on crime rates. Higher interest rates have socially and statistically significant positive effects on rates of theft and knife robberies, while effects on rates of burglary and assault are smaller and statistically insignificant. Higher interest rates have no effect on homicide rates. We conclude that monetary policy influences the rate of economically-motivated crimes.crime, monetary policy, vector autoregressive models (VARs)

Volatile Interest Rates, Volatile Crime Rates: A new argument for interest-rate smoothing

Good monetary policy requires estimates of all of its effects: monetary policy impacts traditional economic variables such as output, unemployment rates, and inflation. But does monetary policy influence crime rates? By extending the vector autoregression literature, we derive estimates of the dynamic effect of higher interest rates on crime rates. Higher interest rates have socially and statistically significant positive effects on rates of theft and knife robberies, while effects on rates of burglary and assault are smaller and statistically insignificant. Higher interest rates have no effect on homicide rates. We conclude that monetary policy influences the rate of economically-motivated crimes.http://deepblue.lib.umich.edu/bitstream/2027.42/40080/3/wp694.pd

Intelligence, Human Capital, and Economic Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach

Human capital plays an important role in the theory of economic growth, but it has been difficult to measure this abstract concept. We survey the psychological literature on cross-cultural IQ tests, and conclude that modern intelligence tests are well-suited for measuring an important form of a nation’s human capital. Using a new database compiled by Lynn and Vanhanen (2002) along with a Bayesian methodology derived from Sala-i-Martin, Doppelhofer, and Miller (AER, 2004), we show that national average IQ has a robust positive relationship with economic growth. In growth regressions that include only robust control variables, IQ is statistically significant in 99.8% of these 1330 regressions, and the IQ coefficient is always positive. A strong relationship persists even when OECD countries are excluded from the sample. A 1 point increase in a nation’s average IQ is associated with a persistent 0.11% annual increase in GDP per capita.Economic Growth, Human Capital, Intelligence, IQ, Education

The Effects of Lubrication on Pharmaceutical Granules

Spray-dried lactose was mixed with 4 different lubricants – magnesium stearate, magnesium silicate, stearic acid, and calcium stearate – in various concentrations. Flowability testing revealed that magnesium stearate improved powder flow until a threshold was reached, at which addition of lubricant had no effect. The addition of calcium stearate also improved flow; however, additional lubricant over the optimum amount further decreased flow. Full placebo granules were manufactured by both high shear and fluidized bed techniques. A granule comparison showed different growth mechanisms, surface morphology, particle size distribution, and flow characteristics for each manufacturing technique. The high shear granules demonstrated better overall flow properties. Granules made from both techniques were mixed with magnesium stearate in varying concentrations. Again, it was determined that after a threshold addition of magnesium stearate, there was little change in flowability. After lubricant addition, the flowability characteristics of both granule types were very similar

The Effect of Monetary Policy on Economic Output

There is substantial research effort devoted to identifying a sufficient statistic for monetary policy. The purpose of this paper is to broaden the scope of the on-going investigation along three dimensions. First, we follow up the Rudebusch-Svensson claim of parameter instability in the output regressions by examining the statistical stability of the parameter estimates with post-1996 data. Second, we examine whether alternative measures of the cyclical component affect the correlation between money supply, interest rates and output. Third, we consider alternative measures of the money supply, permitting us to assess the distinct roles of inside and outside money in terms of the correlation between each component and output.Monetary Policy, Money Supply

A Commentary on the first 118 lines of John of Garland\u27s Integumenta Ovidii

An important text for understanding Ovidian reception in the Middle Ages is John of Garland’s Integumenta Ovidii, a 13th century Latin poem that allegorizes the myths of Ovid’s Metamorphoses. The Integumenta has received little scholarly attention, with the most recent edition having been published in 1933. This thesis seeks to improve upon the understanding of the poem’s text, transmission, and allegorical interpretations by closely studying the first 118 lines, Garland’s allegorization of Book 1 of the Metamorphoses. The project includes collations of six previously unexamined manuscripts, an edition considering readings from the new manuscripts and from the ten additional manuscripts recorded in past editions, an English translation, an introduction, and a commentary discussing the textual, contextual, and interpretive issues of the poem