Jason Abaluck Profile picture
Dec 22 8 tweets 2 min read Read on X
I suspect we are about to enter an interim period where AI exceeds human performance on many cognitive tasks, but this is not common knowledge, and so most people and institutions act like this is not generally the case.
This may well already be true of self-driving cars. I think it is going to be true for large swaths of academia, government and industry, but even blind testing won't persuade -- many people will insist that nothing generalizes beyond the very specific context studied.
People will also point to instances of older models making wrong, unusual or unpopular suggestions in one case as if this justifies ignoring the models in all other cases, even though in any systematic evaluation, the models outperform humans.
The change will be very keenly felt among less established people. Among people just entering the workforce, less capable peers will be producing equally valuable work and it will be obvious why.
Grad students will largely rely on AI models both to produce work and to decide what to study. Many businesses will essentially be proxy competition between AIs, with humans having a comparative advantage in networking and providing capital.
The established will still think that their judgment is unmatched. Sure, the AI system can write down models and analyze data, but we can figure out what questions should be asked. Sure, the AI system can develop software, but we know what software people will value.
This will be false. AI systems will excel at decision-making given the available information, and will outperform the CEOs and tenured professors and elected officials. But people in power won't acknowledge this.
If AI is controllable (obviously a big IF), this interim period where people in power pretend humans add value in cases where they do not could last for decades, perhaps until the generation that grew up with AI is in control.

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More from @Jabaluck

Dec 10
A book review of Tomorrow and Tomorrow and Tomorrow by Gabrielle Zevin.

This is probably the first book review you will read that has absolutely no spoilers and that you will appreciate equally whether you have read the book or not (at least if you read to the end).
The first few characters introduced in the book are named after characters from James Joyce novels -- I read Portrait of the Artist for a high school class and had enough of a passing familiarity with his other work to recognize the names.
I was immediately worried. Was this the kind of writer who thought an "allusion" meant, "haha, I like this author so I will use the same names!" Why would such a writer like James Joyce? I realized quickly I could not be more wrong.
Read 12 tweets
Dec 6
You cannot have:
a) Low healthcare costs
b) No consumer cost sharing
c) Doctors do everything they think benefits patients
d) No insurer oversight
If consumers have no cost-sharing and doctors do everything with positive benefit, many procedures will get done (e.g. marginal scans) that have high costs relative to their actual benefit, and this shows up in higher premiums.
This is not a dilemma exclusively for private insurance -- in countries with some form of single payer, the same point applies. Most (like the UK) will make procedures unavailable when they don't think the benefit justifies the cost, regardless of what your doctor thinks.
Read 9 tweets
Nov 25
I think @DrJBhattacharya is a good appointment compared to the other options. He is less honest than the average health economist (partly due to self-deception), but he would be a voice of reason compared to RFK & company.
He is at least trained to evaluate evidence. His wrongness about Covid was due to overconfidence in his ability to model and calculate, but that's mostly not what he would be doing in an administrative position.
That he selectively presented and distorted the science to suit his politics is more concerning, but he still did this *less* than many politicians -- he's only blameworthy by the higher standard of people who don't have to deceive themselves and others to win political support.
Read 4 tweets
Nov 15
I've updated considerably on the size of the negative externality when scientists declare their political allegiances. This doesn't mean not to do it, and *certainly* doesn't mean not researching controversial issues, but being mindful of the downside of overt advocacy.
The National Bureau of Economic Research has good norms about avoiding directly prescriptive language. Your paper can analyze single-payer healthcare and report costs and benefits given the model you wrote down without then saying, "And therefore we should do this!"
I think being very adamant in sticking to these norms in technical journals across disciplines -- including medicine, public health, sociology etc... -- is a valuable way to emphasize the separation between personal advocacy and professional inquiry.
Read 6 tweets
Nov 12
The total payroll of the federal government is about $110 billion a year buff.ly/3CnrMCx

Federal government spending was $6.1 trillion buff.ly/3YLb0Vf

You cannot meaningfully shrink the federal government by firing "unelected bureaucrats" Image
Image
What is money spent on? Medicare, Medicaid and Social Security are 45%. Defense and debt payments are 28%. The VA, education and transportation are 15%. SNAP, UI, child nutrition, and the earned income tax credit are 7.5%. The remainder is stuff like military pensions. Image
If you want to cut the department of education to save $ (4% of spending), note that the vast majority of federal education spending is student loans, which are estimated to recover costs via higher tax revenue within 11 years after disbursement ( ).buff.ly/3AAjhUa
Read 4 tweets
Oct 24
There is a genre of Twitter post that goes like:
1) I, the critiquing hero, have read a paper
2) I discovered assumptions
3) These assumptions might be wrong

Well, no shit. But can alternative stories plausibly explain the data?

@justinTpickett @eigenrobot
I pick on this thread to illustrate how misleading these critiques can be -- they are often as ideologically motivated as the papers they critique.

Let's "see whats going on under the hood" of this thread:
1) There aren't "weird irregularities" in the data -- what happened is that the authors chose too small a bin size on their scatterplot (and therefore, in small bins, you get data points clustered at values like 0, 0.33, 0.5, 1, etc...).
Read 17 tweets

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