iiinova — where your digital self keeps evolving

Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 04/10/2026

adjustment problems that always arise with new technology, eliminating some jobs while creating others… " #Incentives #economics 4/4 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 04/10/2026

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 04/10/2026

johnquiggin.com/2026/10/04/if-a-cha… "Forcing corporations to bear #liability for damage caused by their actions will, in all probability, drastically 2/4

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 30/09/2026

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 30/09/2026

#EconSky Words Change Behavior More Than We Think www.powerofusnewsletter.com/p/shapi… Challenging the standard consequentialist assumption that decision-making is driven solely by outcomes and incentives, Capraro argues that #behavioralEconomics must integrate 1/3

powerofusnewsletter.com

Words Change Behavior More Than We Think

Valerio Capraro on emotions, norms, strategy, and linguistic framing.

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 25/09/2026

labor-market slack rather than marginal costs. #LaborMarkets #economics 2/2 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 25/09/2026

#EconSky Beveridgean Phillips Curve 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.org

Beveridgean Phillips Curve

Driven by labor slack, the convex Beveridgean Phillips curve achieves target inflation whenever unemployment is at its efficient rate (FERU).

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

evolutionary wiring for high-context social intelligence and interpersonal coordination, which enables us to infer intentions and navigate open-ended human interactions from minimal data in ways brute-force artificial intelligence cannot replicate. #economics 2/2 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

#EconSky Efficient social learning is the human advantage over #AI forklightning.substack.com/p/effici… In an economy where raw computational cognition is rapidly commodified, “humans’ comparative advantage is our learning efficiency”, specifically our 1/2

forklightning.substack.com

Efficient social learning is the human advantage

Evolution has hardwired us for an ASI world

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

courage or the political skill to introduce them." #BehavioralEconomics 4/4 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

#EconSky #Nudge or #tax? At last, some data timharford.com/2026/09/nudge-or-tax… "the two approaches complement each other. Take vaccination: a government keen to maximise the uptake of a vaccine would do well to reduce the price (zero is a particularly attractive 1/4

timharford.com

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

could be much more effective than generic #incentives.” #LaborEcon 4/4 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

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

rfberlin.com

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

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 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

freedom and common sense, #universities are compromising both operational efficiency and their fundamental pedagogical mission. 2/2 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

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

globecollegetown.substack.com

College campuses need to be liberated from their administrators

Higher ed is being strangled by absurd and costly rules. What message is that sending to students?

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

a relatively small online pharmacy and other unexpected retailers were able to provide what a larger health insurance provider and a torrent of regulations did not or could not- affordable medication. #economics 2/2 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 23/09/2026

#EconSky Market #competition accomplishes what decades of regulation haven't www.independent.org/article/2026/09… Not covering expensive but seldom-utilized treatments is an easy way for health insurance providers to cut costs. ... 1/2

independent.org

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 13/06/2026

changes. The skill allows #ClaudeCode to delegate some tasks to #agy. github.com/davdittrich/delegate-agy #codex 2/2 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 13/06/2026

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 13/06/2026

therefore imply a non-significant price effect in the gender wage gap, which is estimated in our analysis at 15.6% … higher human capital – measured here by education level or tenure – and holding a managerial position increase rent-sharing for both men and women … Still, rent-sharing 2/4

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 03/06/2026

raises wages 100%, then chances are the degree really does raise wages, but more like 40–50%. In 2005, John Ioannidis said that “most published research findings are false”. By 2026, we seem to have improved to “most published research findings are exaggerated.” 3/3 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 03/06/2026

field of Education. #Economics likewise had relatively good “#reproducibility”, with most articles clearing this low bar … As a new quick rule of thumb inspired by the Nature papers, you could do worse than “cut estimated effect sizes in half”. If a published paper says that a college degree 2/3

econlib.org

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 03/06/2026

#EconSky Is Economics Finally Becoming Trustworthy? www.econlib.org/econlog/economics-f… "Economics, along with political science, looks relatively good by this measure, with about half of articles sharing data or code, compared to less than one in ten articles in the 1/3

A three-panel chart detailing replication rates across six academic fields (Political science, Economics, Sociology, Psychology, Business, and Education) and an "All fields" summary.

Panel a ("Attempts (%)"): Shows the percentage of studies where a reproduction was "Attempted" (dark blue) versus "Not attempted" (light grey). Political science has the highest attempt rate (around 20%), while all other fields remain under 10%.

Panel b ("Attempts (%)"): A stacked bar chart of attempt outcomes: "Precisely reproduced" (dark blue), "Approximately reproduced" (light blue), and "Not reproduced" (magenta). Economics and Political Science lead with precise reproduction rates over 50%, while Education shows 0% precise reproductions.

Panel c ("Counts"): A dot plot showing total study counts (0 to 150) color-coded by outcome, revealing that Psychology and Business have the largest total sample sizes in the dataset.

The chart highlights a dual-layered reality in social science replication. While fields like Economics and Political Science are much more proactive at attempting to reproduce past research (Panel a) and boast the highest rates of precise reproducibility when they do try (Panel b), the vast majority of published papers across all fields are still never attempted. When attempts are made, roughly half across all fields can be precisely reproduced, leaving a significant portion that can only be partially replicated or fail entirely.

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 03/06/2026

rise of remote work has meaningfully contributed to the recent challenges facing young college graduates." #WfH #LaborMarkets 3/3 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 03/06/2026

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.org

Remote Work Leaves Younger Workers Sidelined - Liberty Street Economic

A 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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 03/06/2026

#EconSky Remote Work Leaves Younger Workers Sidelined libertystreeteconomics.newyorkfed.o… "…youth #unemployment has risen dramatically since the pandemic—as has the prevalence of remote work … remote work can explain 64% of the 1/3

A line graph tracking changes in "Percentage points" on the y-axis (ranging from -2 to 4) over time on the x-axis (from 2015 to 2024). The graph compares two categories, each plotted with a line and a shaded confidence interval: "Remotable occupations" (black line with circular markers and grey shading) and "Non-remotable occupations" (blue line with triangular markers and light blue shading). Both lines converge at 0 in 2019. A vertical grey shaded block highlights the pandemic period around 2020 and 2021. In 2020, both lines spike sharply, but the blue line peaks much higher (around 2.5) than the black line (around 1.5). By 2021, the blue line drops sharply and remains lower, while the black line for remotable occupations steadily climbs upward from 2022 through 2024, ending near 1.5 percentage points.

The chart illustrates a distinct post-pandemic divergence in employment trends based on how adaptable a job is to remote work. While non-remotable occupations saw a massive, immediate spike in 2020 followed by a swift stabilization, **remotable occupations have experienced a sustained, upward trajectory in percentage points from 2022 through 2024**. This suggests a structural, long-term shift or growing challenge within the remote job market compared to traditional, in-person roles.

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 31/05/2026

a firm uses #IDP to raise prices for a given consumer, that automatically allows a competing firm to undercut those prices and take that consumer away" #economics #IndustrialOrganization 3/3 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 31/05/2026

“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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 31/05/2026

#EconSky #PersonalizedPricing Isn’t All Bad for Consumers www.cato.org/blog/personalized-pric… "Both individualized and dynamic pricing have existed in our daily lives for years. But the combination of the two using modern technology has led to fears… that 1/3

cato.org

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 22/05/2026

this vital brain region to "...integrate self-interest with concern for others into a single signal that guides behavior." #BehavioralEconomics #DecisionMaking #SocialCognition 4/4 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 22/05/2026

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 22/05/2026

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 22/05/2026

#EconSky How Your #Brain Decides What Matters nautil.us/how-your-brain-decides-wh… 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.us

How Your Brain Decides What Matters

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

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 22/05/2026

grounds even without monetary incentives to do so .… while merit may justify rejecting taste discrimination of groups with equal merit, it also justifies statistical discrimination under incomplete information" #ExperimentalEcon 5/5 🦣 ⚗️

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 22/05/2026

Nevertheless, 32% forgo earnings by refusing to engage in statistical discrimination. The bulk of statistical discrimination with monetary incentives here stems from merit concerns rather than profit maximization. This is because about half of individuals statistically discriminate on #merit 4/5

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 22/05/2026

preferences remain highly relevant. When taste discrimination becomes profitable, a sizable minority is swayed to engage in it… but 75% forgo earnings by refusing to engage in it. When instead it becomes profitable to engage in statistical discrimination, most are enticed to engage in it… 3/5

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 22/05/2026

preferences against taste discrimination … substantial shares with merit-based preferences for statistical discrimination…as well as against statistical discrimination … discrimination is sensitive to profitability, but only 21% of individuals are pure profit maximizers on average, and moral 2/5

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 22/05/2026

#EconSky Discrimination Preferences d.repec.org/n?u=RePEc:crm:wpaper:26… "… #moral preferences are highly heterogeneous and the moral #discrimination preferences we introduce are widespread. We identify minorities of individuals with tastes for.…and large majorities with 1/5

d.repec.org

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 21/05/2026

differences in skills explain the female advantage in college attendance and part of the STEM gap but have little effect on the gender earnings gap due to offsetting effects across these pathways: women's verbal advantage facilitates educational access but also steers them toward lower-return 3/4

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Dennis Alexis Valin Dittrich @davdittrich.economicscience.net · 21/05/2026

divergence operates partly through field-of-study choice: individuals with stronger verbal skills disproportionately select into fields with higher graduation rates but lower earnings returns, while those with stronger mathematics skills enter #STEM and other high-paying majors. … Gender 2/4

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