Darren 🥚🐣🕊️ Profile picture
Nov 25, 2021 18 tweets 6 min read Read on X
1/ When face masks signal social identity: Explaining the deep face-mask divide during the COVID-19 pandemic

"We found strong evidence of in-group favoritism among both mask & non-mask wearers when information about the partner’s mask usage was known."

journals.plos.org/plosone/articl…
2/ "Instead of simply asking what mask & non-mask wearers think of each other, we look at how information about others’ mask-wearing behavior influences cooperation when real money is at stake.

"We recruited an even distribution of subjects from different political affiliations.
3/ "Our experiment consisted of two main stages of incentivized Prisoner’s Dilemma (PD) games with & without subjects knowing their partners’ mask usage.

"Each subject’s answer to a hypothetical scenario was used to classify her as a mask wearer (MW) or a non-mask wearer (NMW).
4/ "There is a possibility that face masks signal both cooperation and social identity, in which case the opposing effects may cancel out. However, we should continue to observe mask wearers cooperating more when playing against another mask wearer where both H2 and H3 are true."
5/ "There is little evidence to support H1 (that mask wearers are intrinsically more cooperative than non mask wearers when information about their own and the other person’s mask usage is not salient)."
6/ Panel 1: "Eliciting mask usage after the first stage, which would have made their own mask-wearing behavior salient, did not affect cooperation. This suggests participants do not hold stereotypical views about how mask or non-mask wearers should behave in a social dilemma.
7/ Panels 2 and 3: "Mask wearers seemed to treat other mask wearers as in-group members and non-mask wearers as out-group members, and vice versa for how non-mask wearers treated other non-mask wearers and mask wearers.
8/ "Results continue to be robust after controlling for gender, age, ethnicity, the political party supported, education, household income, the exchange rate, and the order of the PD games.
9/ "Compared to facing an anonymous partner, mask wearers’ cooperation rates were 7 percentage points (p<0.001) higher when facing a mask-wearing partner and 25 pp (p<0.001) lower when facing a non-mask wearing partner. The difference of 32 pp is significant in a t-test, p<0.001.
10/ "Non-mask wearers’ cooperation rates were 14 pp (p = 0.063) lower when facing a mask-wearing partner and 3 pp (p = 0.634) higher when facing a non-mask-wearing partner, compared to facing an anonymous partner. The difference of 17 pp is significant in a t-test, p = 0.033.
11/ "Elicited expectations at the end of the experiment about the mask and non-mask wearers’ willingness to cooperate and their altruism towards them are strongly correlated with participants’ cooperation during the experiment itself."
12/ "98% of Democrats identified themselves as mask wearers compared to 88% of Independents & 84% of Republicans. These differences are sizable and stat. significant; we can reject the null hypothesis that the average mask usage is the same across all 3 political affiliations.
13/ "The bias towards mask wearers over non-mask wearers was highest among Democrats, followed by Independents, and then Republicans. Likewise, the bias towards mask wearers over non-mask wearers decreases with how conservative participants think of themselves."
14/ "Non-mask wearers were 21 pp (p=0.002) less likely to cooperate than mask wearers when facing a mask wearer & 25 pp (p<0.001) more likely than mask wearers when facing a non-mask wearer even accounting for the interaction between political affiliation and partner mask usage."
15/ "While there is evidence that political identity drives some of our earlier results of social identity effects associated with face mask usage, we cannot attribute the entire effects to the hypothesis that face masks are a pure signal of political identity.
16/ "There is still a residual effect that cannot be accounted for by the political identity, which implies that face masks also carry an identity, one that is distinct from political identity.
17/ "Given recent discussions on vaccine passports and getting those who have been vaccinated to wear a sticker visible to others, our results suggest that such efforts might lead to the unintended politicization of vaccinations and undermine large-scale vaccination efforts."
18/ Related reading:

Media Slant is Contagious


Is Newspaper Coverage of Economic Events Politically Biased?


Polarizing impact of science literacy and numeracy on perceived climate change risks

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More from @ReformedTrader

Jan 1
1/ Fact, Fiction, and Factor Investing (Aghassi, Asness, Fattouche, Moskowitz)

"We reference an extensive academic literature and perform simple but powerful analyses to address claims about factor investing."

aqr.com/Insights/Resea…
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2/ #1. Fiction: Factors are Data-Mined with No Good Economic Story

"Value, momentum, carry, and defensive/quality pass the more stringent statistical tests.

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"Applying those factors (+carry) across markets and asset classes gets a t-stat of >14."





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Read 14 tweets
Dec 31, 2023
1/ Happily Ever After? Cohabitation, Marriage, Divorce, and Happiness in Germany (Zimmermann, Easterlin)

"The formation of unions (separation or divorce) has a positive (negative) effect on life satisfaction. We also see a 'honeymoon period' effect."

researchgate.net/publication/49…
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3/ " 'How satisfied are you with your life, all things considered?' Responses are ranked on a scale from 0 (completely dissatisfied) to 10 (completely satisfied).

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Aug 13, 2023
1/ Short-sightedness, rates moves and a potential boost for value (Hanauer, Baltussen, Blitz, Schneider)

* Value spread remains wide
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* Extrapolative growth forecasts drive the value premium

robeco.com/en-int/insight…
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2/ "The valuation gap between cheap and expensive stocks remains extremely wide. This signals the potential for attractive returns going forward."


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3/ "We observe a robust negative relationship between value returns and changes in the value spread.

"The intercept of ≈10% can be interpreted as a cleaner estimate of the value premium, given that it is purged of the time-varying effects of multiple expansions & compressions." Image
Read 7 tweets
Aug 5, 2023
1/ Advanced Futures Trading Strategies (Robert Carver)

This really interesting book tests some strategies that I haven't seen in the academic literature.

Read Part 1 to see how the author builds portfolios; the new stuff is explored in Parts 2-5.

https://t.co/p1QdFCE9F1amazon.com/Advanced-Futur…



Trend and carry in various volatility regimes
Trend using spot prices
Carry with seasonality corrections
Value (5-year mean reversion) in futures markets
2/ Part 1: Basic directional strategies
Part 2: Adjusted trend, trend and carry in different risk regimes, spot trend, seasonally-adjusted carry, normalized trend, asset class trend
Part 3: Breakouts, value, acceleration, skew
Part 4: Fast mean reversion
Part 5: Relative value


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Skew
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Fast mean reversion conditioned on trend
3/ Related reading

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Two Centuries of Trend Following
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https://t.co/l0wVgAOrhL

Leveraged Trading
https://t.co/1bKFEaD5cu



Read 4 tweets
Apr 2, 2023
1/ Natural course of health & well-being in non-hospitalised children & young people after testing for SARS-CoV-2

"Some test-positives & test-negatives reported adverse symptoms for the first time at 6- & 12-months post-test, suggesting multiple causes."

thelancet.com/journals/lanep…
2/ "The broadly similar pattern of adverse health and well-being reported as new-onset at 6- and 12 months among test-positives and test-negatives highlights the non-specific nature of these symptoms and suggests that multiple aetiologies may be responsible."
3/ Related reading:

Efficacy of Vaccination on Symptoms of Patients With Long COVID


Immunoglobulin signature predicts risk of post-acute COVID-19 syndrome
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Mar 29, 2023
1/ My conversation with ChatGPT:

What is the best way to manage an absolute return portfolio?

"As an AI language model, I do not have personal opinions, but here are some general guidelines for managing an absolute return portfolio."

chat-gpt.org/chat Image
2/ Do you hedge out market beta in order to make the portfolio more risk balanced?

"Yes, hedging out market beta can help.... This can be achieved through various methods such as shorting market index futures or investing in negatively correlated assets." Image
3/ What are some examples of negatively correlated assets that offer positive CAPM alphas?

"Some examples of negatively correlated assets that have historically offered positive CAPM alphas include gold and equities, government bonds and equities, and REITs and equities." Image
Read 10 tweets

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