Shengwu Li Profile picture
Feb 23, 2021 6 tweets 1 min read Read on X
As someone who occasionally read letters for PhD admission, I give less weight to letters from pre-doc employers compared to letters from undergrad or grad advisors. Why?
Pre-doc employers have different incentives: if their pre-docs don’t consistently place well into PhD programs, then they are less able to recruit in future. Of course they will not make an explicit quid pro quo. But potential employees will look!
By contrast, each academic in a BA or masters program accounts for only a small share of the students. Many of their students will not even be thinking about PhDs, and the quality of the incoming class is only weakly related to the academic’s personal productivity.
Finally, if predoc wages are lower than comparable work because they adjust for the (non-pecuniary) benefit of letters, then employers may feel that writing a bad letter is stiffing an employee of their compensation.
Certainly I know that I would feel that way! (Which is why it’s good that I have no predocs.)
Econ grad school is complicated, the path to it does seem too long, there aren’t easy fixes. But at least in my own judgement, having done a predoc is not a large advantage compared eg to a master’s degree.

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More from @ShengwuLi

Feb 10, 2024
Ok here are my go-to papers for making small talk with smart non-econs.

(Yes, I am exactly as uncool as maintaining this list would imply.)
1. Budish-Cramton-Shim on high frequency trading and frequent batch auctions. Specifically, for this robustness check concerning special relativity. Image
2. Aizer and Doyle on juvenile incarceration. Mostly so I can say the line “of course it would be unethical for us to randomly give some teenagers longer prison sentences. Fortunately, or unfortunately…” Image
Read 8 tweets
Dec 12, 2023
Why unrealistic theories?

Most econ students go through a phase of thinking that more 'realistic' theories are automatically better. But here are some good reasons for unrealism.
1. the obvious: a more realistic theory would be intractable.

But that doesn't mean you should make theories as 'realistic' as possible subject to a tractability constraint.
2. Complexity is a budget. If I make the theory more realistic in this dimension, I will have to sacrifice realism in other dimensions.

(This applies not just to solving the model; but also to the reader's attention.)
Read 9 tweets
Sep 6, 2023
Having angered the humanities-econs, let me now anger their complement.

I think that every PhD student should learn about the history of economic thought. Either by reading primary texts or by reading the work of relevant historians.
Economics made a lot of stark methodological choices in the mid to late 20th century.

(Expected utility theory, preference utilitarianism, methodological individualism, a focus on equilibrium, non-cooperative rather than cooperative game theory...)
These choices are built into the everyday practice and thinking of economists. Things could have gone another way. And there are important features of the world that the canonical formalisms miss out.
Read 11 tweets
Sep 4, 2023
Let me explain this claim, as if to an undergrad, an aspiring economist who has not yet taken a math course with real proofs. 🧵
You are planning to join a discipline that has asked (and answered) foundational questions using mathematical models.

These questions touch every corner of economics. They include:
1. If we assume that people maximize utility, exactly what kind of behavior are we ruling out?

2. What are market-clearing prices? When do they exist? Can we find them by a process of 'gradual adjustment'?
Read 8 tweets
Mar 2, 2023
Many families have vindictive relatives. My relatives just happen to control a small authoritarian government. 🇸🇬 🧵
My grandfather, Lee Kuan Yew (LKY), was the first prime minister of Singapore. My uncle Lee Hsien Loong (LHL), the current prime minister, disagreed with his brother and sister about Lee Kuan Yew's will.
(Long story short: LKY wanted his personal home demolished, and demolition would be politically inconvenient for LHL. His brother and sister want to uphold their father's last wish.)
Read 9 tweets
Sep 18, 2022
Is it true that “chess is just poker now”? When human players are guided by chess engines, it may be that the real strategy is deciding what to prepare. And the preparation phase may well have an equilibrium in mixed strategies. Image
An interesting aspect: Bounded human cognition turns a perfect information game into an imperfect information game. Players simultaneously decide what scenarios to ‘pre-compute’, then white makes the first move.
Read 4 tweets

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