I hope this doesn't happen to Sprint's WiMax plans...

Municipal wireless has been a failure. The City of Tempe projected 32,000 users, but only had 600 at its last published count, which was back in April 2006. It’s also failing in Philadelphia, Minneapolis, Portland, Chicago, and Taipei. (Also see Technology Liberation Front, which makes the same point.) UPDATE (November 8, 2007): Sprint and Clearwire have scrapped a plan to jointly build out their WiMax networks, and it looks like Sprint may scale back its own WiMax plans, as well. ...

September 21, 2007 · 1 min

Moody's revises its housing price predictions

Last October, I reported that Moody’s was predicting that the Phoenix housing market would see price declines of 9.3% between the first quarter of 2006 and the second quarter of 2008, which I called “wildly optimistic." Now Moody’s has issued a new report which claims the Phoenix housing market will see price declines of 17.8% between the second quarter of 2006 and the second quarter of 2008–they’ve doubled the percentage of drop for a time period that’s three months shorter. I’m guessing this will be closer to accurate–but still shy of the mark, unfortunately. The report also predicts a drop of 11.7% for Tucson, lower than October’s prediction of a 13.4% drop.

September 19, 2007 · 1 min

Lomborg, global warming, and opportunity costs

I’ve not read Bjorn Lomborg’s new book (nor his previous one), but I have read enough of what he has written to suspect that some of those who are ridiculing one of his arguments don’t understand it. For example, Bob Park of the American Physical Society’s “What’s New” writes: Bjorn Lomborg’s “Cool It: The Skeptical Environmentalist’s Guide to Global Warming” is out. Well, yes it is getting warmer he finds, but aside from polar bears, it just means more beach weather. We’ve got bigger problems, he says. Instead of spending all that money trying to prevent warming, let’s focus on making everyone rich so they can all buy air conditioners.P.Z. Myers at Pharyngula writes: He also has a bad argument about relative spending: he suggests that spending on climate change would reduce spending on other pressing issues, like the fight against malaria. It’s a bad choice. Malaria research is already underfunded — it’s a third-world disease, don’t you know, one that mainly affects those tropical countries, so the wealthy western nations typically don’t prioritize it very highly. We don’t take our big pots of money and allocate it into aliquots appropriate to the world’s needs already, so for an economist to sit there and pretend that climate research is a drain on tropical disease research is comical. Especially since he seems unaware of how one feeds into the other. Hey, if the world warms up, tropical diseases will creep northward into Europe and North America, and then we’ll be fighting the economic effects of both direct effects of climate change and new diseases.But as I understand it, Lomborg is making a simple point about opportunity costs–that money spent on climate change mitigation can’t be spent on other things, and that it would be better off spent on things like fighting malaria (which I’m sure he would agree with Myers is underfunded, since it’s #4 on the Copenhagen Consensus 2004 list of “very good projects” to spend money on), because the amount of benefit received for each dollar spent is so much greater. To make the same point–I have looked into putting solar cells on my house, both to reduce my carbon footprint and my long-term energy costs, but I’ve decided against it because even with the tax incentives and my power company’s willingness to subsidize half the cost, it’s still not cost-effective. (I’m hoping new solar cell technologies will improve efficiency and lower cost so that I will be able to become less dependent upon the electrical grid). Instead, I’ve spent much smaller amounts of money that have had far more bang for the buck, replacing my incandescent lights with CFLs (though LEDs and other new promising technologies are on the way as better sources of light), adding insulation, and improving the efficiency of my air conditioning units through regular maintenance. These things I’ve done not only have an impact on my energy use and climate change, they are things which provide me with direct economic benefit as well–thus these are things that rational people will be doing independently of government regulation and spending. Lomborg–or at least the Copenhagen Consensus–is not saying that climate change deserves no attention. The premise of the Copenhagen Consensus is that if the world spent an additional $50 billion over the next five years to address ten categories of global challenges (one of which is climate change), how would that money best be spent to provide the greatest net benefit. That seems to me to be an entirely worthy effort, and this kind of cost-benefit calculation should be given greater weight in public policy decisions. Instead, however, most politicians like to make arguments based on the assumption that any law, regulation, or government spending that saves even one life (or prevents one child from seeing something offensive) is worth doing, whether or not that generates enormous opportunity costs. My personal behavior–and I suspect that of those criticizing Lomborg on this point–demonstrates that I don’t consider climate change my number one priority. In my case, I live in a large house that uses a lot of electricity, I travel frequently by plane, I drive a car instead of using public transportation, I eat meat instead of being a vegetarian like my wife. Each of these things causes, directly or indirectly, an increase in carbon dioxide emissions over the alternatives. UPDATE (December 16, 2008): I just came across this description of Lomborg’s overall behavior with respect to the climate change debate, which I think is likely accurate. ...

September 15, 2007 · 7 min

Maricopa County foreclosure and notice rate database

The Arizona Republic has an online database of 2007 foreclosures and notices of trustee’s sales, searchable by community (mostly cities), region, or zip code. I’m sorry to see that my neighborhood (mostly built up in the last 3-4 years) has pretty high rates of 25.9 foreclosures per 10,000 households and 115.94 notices per 10,000 households. At least I’m not in Surprise’s 85388 zip code, which has seen 310.9 foreclosures per 10,000 households and 997.8 notices per 10,000 households. Ouch! That’s over 3% of the zip code foreclosed upon already, and another 10% in danger, and we haven’t even seen the peak of ARM resets yet.

September 7, 2007 · 1 min

This is getting ridiculous

<img style=“display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;” src="/images/07AugNTR.jpg" border=“0” alt=“Click for full size"id=“BLOGGER_PHOTO_ID_5107270921523980290” /> August’s total was 3249, beating last month’s record high by an additional 746! Historical Comments houseofpain (2007-09-07): It defies gravity, holy moley!!!

September 7, 2007 · 1 min · Einzige

Early U.S. income tax

I’m in the process of reading Akhil Reed Amar’s America’s Constitution: A Biography, and just came to the portion about the 16th Amendment, which instituted a federal income tax. I had already known that the tax was a very low percentage, but I hadn’t realized that only the top 1% of income earners paid any income tax. It would be a nice model to go back to, but not possible without dramatically reducing federal spending–the wealthiest Americans wouldn’t tolerate an extortionate percentage of taxation that would be required on the current level of spending, and given the huge amounts of money that are now a part of political campaigning, nobody gets elected without the support of at least some of the wealthiest Americans. (And those levels of spending are tied together–there’s huge money riding on political campaigns because there’s huge money and power in the hands of the federal government. The only way to reduce the former is to reduce the latter.) Here are the two paragraphs where Amar describes pre-Civil War and post-16th Amendment income taxes in the United States: Prior to the Civil War, at least seven states had adopted income taxes. High exemptions and graduated rates–the basic features of a progressive tax structure–were commonplace in these states. Congress followed this pattern when introducing a federal income tax in the 1860s. For instance, the 1865 federal tax code exempted all persons who made less than $600, taxed income between $600 and $5,000 at 5 percent, and subjected all income above $5,000 to a steeper 10 percent rate. Later federal laws tweaked the specifics but preserved the basic structure, under which more than three-quarters of federal revenue came from the seven wealthiest states: New York (which itself generated more than 30 percent of the total national intake), Massachusetts, Pennsylvania, Ohio, Illinois, New Jersey, and Connecticut. Under the law struck down in Pollock, incomes over $4,000 were taxed at 2 percent, all others were exempt. According to Treasury Department estimates, less than 1 percent of the population had been subject to this levy. … In the first income-tax statute enacted after the new amendment was in place, Congress once again opted for a progressive tax structure that exempted a large swath of low- and middle-income persons and taxed the rest at a sloping rate, beginning at 1 percent for an individual making $3,000 and topping out at 7 percent for income over $500,000. The $3,000 minimum threshold effectively limited the tax to the top 1 percent of the economic order. In 1916 the Supreme Court unanimously upheld the new tax law, expressly rejecting the notion that the “progressive feature” of the tax somehow rendered it unconstitutional. The American People had spoken and–this time, at least–the Court listened.

August 25, 2007 · 3 min

Arizona home sales way down

Despite new home builders offering unprecedented incentives, new home sales in Arizona are dismal. 2007 year-to-date sales (through July) were 33,510, compared to 41,835 for the same time period in 2006 and 68,235 for the same period in 2005. And this is while inventories and foreclosures are climbing. Historical Comments shrimplate (2007-08-10): One out of every three dollars generated by the Valley's economy comes from the housing industry. When that sinks, be in a lifeboat. It's gonna suck. ...

August 10, 2007 · 1 min

Arizona's #7 for per-capita preforeclosures

Arizona is the #7 state for per-capita preforeclosures: TOP 10 PREFORECLOSURE STATES State Filings Per CapitaNevada 19,044 2.55 percentFlorida 111,250 1.76 percentColorado 24,045 1.49 percentIllinois 52,984 1.35 percentNew Jersey 37,250 1.22 percentCalifornia 132,101 1.15 percentArizona 20,669 1.09 percentUtah 5,773 0.90 percentTexas 46,595 0.81 percentGeorgia 19,382 0.75 percent SOURCE: Foreclosures.com I’m not sure what the timeframe is for this data, but it looks like the last twelve months.

August 3, 2007 · 1 min

Words Fail Me...

July, 2007, saw 2503 Notices of Trustee’s Sales in Maricopa County - yet another record. Historical Comments houseofpain (2007-08-01): Holy moly, apocalypse!!! Anonymous (2007-08-01): I agree with house of pain. The pain is coming to the real estate market. I need more popcorn for this double feature.

July 31, 2007 · 1 min · Einzige

A marketplace for software vulnerabilities

The July 21, 2007 issue of The Economist has an article about a Swiss company that has opened a market for software vulnerabilities: Since economics, like nature, abhors a vacuum, a small industry of “security companies” has emerged to exploit the hackers’ dilemma. These outfits buy bugs from hackers (euphemistically known as “security researchers”). They then either sell them to software companies affected by the flaws, sometimes with a corrective “patch” as a sweetener, or use them for further “research”, such as looking for more significant—and therefore more lucrative—bugs on their own account. Such firms seek to act as third parties that are trusted by hacker and target alike; the idea is that they know the market and thus know the price it will bear. Often, though, neither side trusts them. Hackers complain that, if they go to such companies to try to ascertain what represents a fair price, the value of their information plummets because too many people now know about it. Software companies, meanwhile, reckon such middlemen are offered only uninteresting information. They suspect, perhaps cynically, that the good stuff is going straight to the black market.Last week, therefore, saw the launch of a service intended to make the whole process of selling bugs more transparent while giving greater rewards to hackers who do the right thing. The company behind it, a Swiss firm called WabiSabiLabi, differs from traditional security companies in that it does not buy or sell information in its own right. Instead, it provides a marketplace for such transactions. A bug-hunter can use this marketplace in one of three ways. He can offer his discovery in a straightforward auction, with the highest bidder getting exclusive rights. He can sell the bug at a fixed price to as many buyers as want it. Or he can try to sell the bug at a fixed price exclusively to one company, without going through an auction. ...

July 29, 2007 · 3 min
Mastodon Verification