Dennis Alexis Valin Dittrich

Dennis Alexis Valin Dittrich

@davdittrich.economicscience.net

Interested in bounded rationality, trust, discrimination, fair compensation, labor economics, quantitative methods, dataviz, rstats, open source 1stgen Professor of Economics (2005-2022) Senior Economist at the Stepstone Group https://economicscience.net

861 followers746 following2.8K posts

Dennis Alexis Valin Dittrich reposted

We really need to make Meng's Big Data Paradox central to teaching, don't we? Researchers don't know this stuff bc they have never been exposed to it. But it is fundamental. (Link to paper PDF statistics.fas.harvard.edu/sites/g/file...)

Andrew Gelman et al.@statmodeling.bsky.social

The problem is noise, not N: why increasing the sample size isn’t all that. statmodeling.stat.columbia.edu/2026/10/10/t...

#EconSky Zombie firms and the growth of the living: the labor market channel https://d.repec.org/n?u=RePEc:bdi:opques:qef_1058_26&r=&r=lma "By hoarding workers in unproductive employment relationships, zombie firms reduce the effective local labor supply available to healthy competitors, 1/3

bancaditalia.itbancaditalia.itZombie firms hoard local labor, dampening healthy firms’ employment expansion in response to positive export-demand shocks. *(123 characters)*

thereby limiting productive firms’ ability to expand employment when faced with favorable demand conditions … Effects are strongest for white-collar workers and for micro and small firms, consistent with tighter constraints on scarce skills and greater reliance on local hiring … suggesting 2/3

slow the “hyperscaling” rush to produce more and increasingly powerful agentic software. … And none of this will preclude the many benign uses of “#AI” software, including massively improved internet search, document summarisation and translation, and software coding. These uses come with the 3/4

linguistic framing directly into formal models of choice. Powered by #AI's capacity to quantify semantic nuance, he contends that “large language models can facilitate a paradigm shift within behavioural economics from outcome-based utility functions to a more general class of functions that 2/3

#EconSky Beveridgean Phillips Curve https://arxiv.org/pdf/2401.12475 Replacing standard monopolistic pricing with directed-search pricing under price-adjustment costs, the framework links the #inflation gap directly to the #unemployment gap, yielding a model where prices respond to 1/2

arxiv.orgBeveridgean Phillips CurveDriven by labor slack, the convex Beveridgean Phillips curve achieves target inflation whenever unemployment is at its efficient rate (FERU).
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is no substitute for using taxes to get price signals right. List et al write: “In four of five markets, price instruments deliver substantially larger total surplus than nudges.” All too often, politicians are turning their back on the most beneficial policies because they lack the political 3/4

price point, it turns out) but should also send out well-timed and well-phrased reminders. There is nothing mutually exclusive about these options. … If the choice is between the icing and the cake, politicians should choose the cake. Nudges are far from trivial in their benefits, but there 2/4

#EconSky What German reunification reveals about how we really find work, and the one connection that makes the difference. https://www.rfberlin.com/wp-content/uploads/2025/09/25077.pdf Only 3 to 4% of displaced East German workers moved west within five years of losing their jobs, despite 1/4

rfberlin.comrfberlin.comDisplaced workers relocate toward former coworkers, driven by relevant, job-specific information rather than social support.
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response to regional job losses has been relocation subsidies and better job listings. Those are useful, but they don’t address the deeper problem: people don’t know whether they’ll actually succeed in a new place. Connecting displaced workers with people who have made similar transitions 3/4

#EconSky What German reunification reveals about how we really find work, and the one connection that makes the difference. https://www.rfberlin.com/wp-content/uploads/2025/09/25077.pdf Only 3 to 4% of displaced East German workers moved west within five years of losing their jobs, despite 1/4

rfberlin.comrfberlin.comDisplaced workers relocate toward former coworkers, driven by relevant, job-specific information rather than social support.

higher #wages, recognised qualifications, a shared language and relocation subsidies all pointing that way. The reason wasn’t laziness or lack of opportunity: it was #information. What moved people was a former coworker who did the same job and had already made it in the West “The standard 2/4

consumption historically served as a metric for industrialization, #AI tokens—the foundational units of compute used to process and generate data—are emerging as a standardized, real-time economic indicator to measure the intensity and diffusion of generative AI across industries. #economics 2/2 🦣 ⚗️

“college campuses need to be liberated from their administrators” because “higher ed is being strangled by absurd and costly rules.” https://globecollegetown.substack.com/p/higher-ed-administration-barry-lam ​By allowing bureaucratic mandates and managerial overreach to supersede academic 1/2

globecollegetown.substack.comCollege campuses need to be liberated from their administratorsHigher ed is being strangled by absurd and costly rules. What message is that sending to students?

The cheapest migration is the one nobody notices. Google cuts off the #GeminiCLI for consumer tiers on June 18. My tools all call gemini directly. So I kept the name and swapped the backend. A shim and #ai agent #skill that routes gemini through Google's Antigravity CLI. No config 1/2

recent increase in unemployment among young college graduates." This happens because "when people work next to their colleagues, they receive more feedback on their output and more mentorship," making companies "reluctant to hire less-experienced workers in distributed work arrangements. …the 2/3

libertystreeteconomics.newyorkfed.orgRemote Work Leaves Younger Workers Sidelined - Liberty Street EconomicA look at the rise in remote work since the pandemic, and how this trend has influenced the recent increase in youth unemployment among college gradua

“corporations are collecting our personal data to extract every cent they can to pad their pockets.” … the best protection for consumers is a competitive market. In #competitiveMarkets with no supply constraints, individualized dynamic pricing has proven to largely benefit consumers. Any time 2/3

#EconSky How Your #Brain Decides What Matters https://nautil.us/how-your-brain-decides-what-matters-1281159 Traditional #neuroscience mythologized the amygdala as a simple fear switch, but recent studies on a rare genetic disorder reveal its deeper role in social and economic decision-making. 1/4

nautil.usHow Your Brain Decides What MattersHow Your Brain Decides What Matters: People with amygdala damage are shedding new light on why we trust or fear others
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diminished ability to flexibly weigh uncertainty, self-interest, and the intentions of others." This computational deficit often manifests as extreme generosity to strangers, demonstrating "...a willingness to help others without the usual filtering of context." Complex social choices rely on 3/4

#EconSky How Your #Brain Decides What Matters https://nautil.us/how-your-brain-decides-what-matters-1281159 Traditional #neuroscience mythologized the amygdala as a simple fear switch, but recent studies on a rare genetic disorder reveal its deeper role in social and economic decision-making. 1/4

nautil.usHow Your Brain Decides What MattersHow Your Brain Decides What Matters: People with amygdala damage are shedding new light on why we trust or fear others

Rather than just detecting threats, the basolateral amygdala acts as "...a kind of social compass, helping to weigh the needs and intentions of others and decide who matters to us." When this neural circuitry is damaged, individuals fail to properly balance risk and reward, displaying "...a 2/4