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data/F24LS_md/ Lecture 4 - Public.md

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+---
+title: " Lecture 4 - Public"
+type: slides
+week: 4
+source_path: "/Users/ericvandusen/Documents/Data88E-ForTraining/F24LS/ Lecture 4 - Public.pptx"
+---
+
+## Slide 1: Data 88E: Economic Models
+
+- Lecture 4: Public
+- Welfare & Government Intervention
+
+## Slide 2: Announcements
+
+- Lab 3 will be released today. It is due  Tuesday September 25 11:59pm
+- Project 1 is due Tuesday September 25 11:59pm
+- Come to Office Hours for help! Start the Project!
+- Read the Textbook - Especially if you don’t have prior Econ Experience
+- UNITS
+- Graders gave  leeway on units this lab
+- Pay attention to units - will lose points in the future
+- Some people used Chat GPT and it was super obvious
+  - DON’T USE CHAT GPT  for CODE or TEXT ANSWERS
+- Project 1
+- Air BNB
+- Is a little bit longer - get started
+
+## Slide 3: Python Reference
+
+- https://www.data8.org/fa24/reference/
+
+## Slide 4: Announcements
+
+  - Got a few submissions for Lab 1 who used ChatGPT
+- It’s super obvious
+- The answer was much more complicated, used other techniques than we use in class
+- Data 8 syntax is 2-3 lines of code
+- Wrong package
+
+## Slide 5: Meme of the week
+
+- student during the school year
+- student  during summer internship
+
+## Slide 6: Welfare Analysis - Consumer and Producer Surplus
+
+- A consumer surplus is the aggregate (across all consumers) difference between willingness to pay and actual price paid.
+- A producer surplus is the aggregate (across all producers) difference between willingness to receive and actual price received.
+- E.g. If the supply curve decreases, the units originally purchased at a higher price will still be purchased now at a lower price. This price difference is a surplus.
+
+## Slide 7: Switch to first part of Lecture Notebook -
+
+- Check out Lecture notebook and let’s walk through the example from Class Demand Lecture
+
+## Slide 8: Lecture Notebook on Surplus
+
+- Histogram of Surplus
+- Counting up
+- Graphing a surplus triangle
+
+## Slide 9: (untitled)
+
+## Slide 10: (untitled)
+
+## Slide 11: (untitled)
+
+## Slide 12: (Consumption) Taxes
+
+- We will consider only taxes levied on consumption today. These are typically enforced on a state level in the US.
+- Typically they take a few forms:
+- Excise tax: Dollar amount, e.g. 1 dollar per pack of cigarettes
+- Ad valorem tax (sales tax): % amount, e.g. 9% sales tax
+
+## Slide 13: Why Tax? (or provide Subsidies?)
+
+- Negative externalities: true cost not reflected in the market transacted price
+- E.g. Pollution, traffic congestion, passive smoking
+- These costs spillover to others!
+- Marginal private cost < marginal social cost (overproduction)
+- Positive externalities: true benefit not reflected in the market transacted price
+- E.g. education, vaccines, Ed questions (public goods)
+- These benefits spillover to others!
+- Marginal private benefit < marginal social benefit
+
+## Slide 14: An aside: Ed
+
+- Answering and posting questions is a public good with positive externalities; the market under supplies the good.
+- What is a public good? 2 important attributes:
+- Non-rivalrous: One’s use of the good does not affect another’s use
+- Non-excludable: We cannot prevent anyone from benefiting from the good
+- To correct for positive externalities, typically the government will provide subsidies.
+- Now a couple of people are answering questions on Ed - YAY!
+
+## Slide 15: Positive Externality
+
+## Slide 16: Negative Externality
+
+## Slide 17: Tax on Cigarettes
+
+## Slide 18: Tax to reduce a Negative Externality
+
+## Slide 19: Externalities Graphed
+
+- Negative Externality
+- Positive Externality
+- Which good is underproduced? Which good is overproduced?
+- Supply Side
+- Demand Side
+
+## Slide 20: A technicality on variables
+
+- Pc := price consumer pays
+- Pp := price producer receives
+- Pc = Pp + tax
+- Quantity demanded: D(Pc)
+- Quantity supplied: S(Pp)
+- In previous weeks without tax, Pc = Pp (which we denoted as P for short), and equilibrium was such that D(Pc) = S(Pp).
+- However, this changes when a third player -- the government -- is introduced!
+
+## Slide 21: Expressing Taxes Mathematically
+
+- If the Demand Curve is given by D(Pc) = 2000 - 20Pc and a 4 dollar sales tax is implemented on the consumer, what is the new demand curve?
+- If the Supply Curve is given by S(Pp) = 200 + 15 Pp and a 4 dollar tax is implemented on the producer, what is the new supply curve?
+- D(Pc) = 2000 - 20(Pp+4) = 2000 - 20Pp - 80 = 1920 - 20Pp
+- S(Pp) = 200 + 15 (Pc-4)  = 200 + 15Pc - 60 = 140 + 15Pc
+- Pp: amount received by producer
+- Pp+4: amount paid by consumer (Pc)
+- Pc-4: amount received by producer (Pp)
+- Pc: amount paid by consumer
+
+## Slide 22: Graphing Taxes
+
+- Mathematically, a tax is a shift in the supply/demand curve due to a change in the intercept.
+- A tax allows us to correct for negative externalities by charging the marginal social cost curve!
+
+## Slide 23: Graphing Taxes (supply side)
+
+- Quantity transacted falls from Q to Q’
+  - Pc paid by consumers
+  - Pp received by producers
+  - Tax = Pc - Pp
+- CS and PS are reduced
+- Deadweight loss: area of surplus that no longer exists, due to less units being transacted
+
+## Slide 24: Incidence of Tax
+
+- Statutory Incidence: the side that is legally responsible for paying the tax
+- Economic Incidence: side that bears the burden of the tax.
+- We can measure who bears the burden of the tax by comparing the amount being received/paid by producers/consumers to the original price.
+- Statutory incidence is independent of economic incidence!
+- i.e. a tax that is levied on consumers will have the same burden as the same tax levied on producers.
+
+## Slide 25: Economic Incidence Depends on Elasticities
+
+- Inelastic Demand
+- Elastic Demand
+- If demand is more elastic, will consumers or producers bear more of the burden of the tax?
+
+## Slide 26: An Example (I)
+
+- The demand for rutabagas is:
+- D(Pc) = 2000 − 100Pc
+- The supply of rutabagas is:
+- S(Pp) = −100 + 200Pp
+- What is the equilibrium price without the tax?
+
+## Slide 27: An Example (I)
+
+- The demand for rutabagas is:
+- D(Pc) = 2000 − 100Pc
+- The supply of rutabagas is:
+- S(Pp) = −100 + 200Pp
+- What is the equilibrium price without the tax?
+- Pp = Pc = P
+- 2000 - 100P = -100 + 200 P
+- P = 7
+
+## Slide 28: An Example (II)
+
+- What is the equilibrium price with a per unit $2 sales tax?
+
+## Slide 29: An Example (II)
+
+- What is the equilibrium price with a per unit $2 sales tax?
+- 2000 - 100Pc = -100 + 200 Pp
+- 2000 - 100(Pp+2) = -100 + 200Pp
+- Pp = 6.33
+- Pc = 6.33 + 2 = 8.33
+
+## Slide 30: An Example (III)
+
+- What are the tax burdens on the consumer and producer?
+
+## Slide 31: An Example (III)
+
+- What are the tax burdens on the consumer and producer?
+- Consumer: New price paid - Old price paid = 8.33 - 7 = 1.33
+- Producer: Old price received - New price received = 7 - 6.33 = 0.67
+- The consumer bears ⅔ of the total burden of the tax
+
+## Slide 32: An Example (IV)
+
+- What is change in quantity transacted due to the tax?
+
+## Slide 33: An Example (IV)
+
+- What is change in quantity transacted due to the tax?
+- Originally, Q = 2000 - 100Pc = 2000 - 100\*7 = 1300
+- Now, Q = 2000 - 100Pc = 2000 - 100\*8.33 = 1167
+- 1300 - 1167 = 133
+- We can also plug in Pp into the supply equation and get the same results
+
+## Slide 34: Let’s put it all together in the Notebook - with sliders
+
+## Slide 35: Graph 1
+
+## Slide 36: Graph 1 - sliders  with 3 questions
+
+- Price Start does nothing
+- Supply shifts Slope
+- Demand shifts Intercept
+- Intercept shift - no change in shares
+- Slope Shifts - change in relative shares
+
+## Slide 37: Lab - Are Consumers Aware of Taxes?
+
+- Raj Chetty, Adam Looney, and Kory Kroft (AER 2010) seek to answer this
+- “We find that posting tax-inclusive price tags reduces demand by 8 percent.”
+- US vs Europe?
+
+## Slide 38: Journal article
+
+- Raj Chetty was at Berkeley
+- 2003-2009
+
+## Slide 39: Reproducibility
+
+- AER website
+
+## Slide 40: Dataset in replication repository
+
+## Slide 41: Replication Data   ( ~2009 version)
+
+## Slide 42: Price Controls
+
+- Price Ceilings
+- Forcibly lower prices:
+- price ceiling < equilibrium price
+- Creates a shortage
+- E.g. rent control
+- Price Floors
+- Forcible raise prices
+- price floor > equilibrium price
+- Creates a surplus
+- E.g. minimum wage
+
+## Slide 43: World Trade vs. Autarky
+
+- Autarky: A state of economic self-sufficiency
+- World trade: constant world price is introduced to the market
+- What happens to: consumer surplus? Producer surplus? Total surplus?
+
+## Slide 44: What are the benefits of free trade?
+
+- Increases consumer surplus
+- Can increase GDP and drive growth
+- Encourages specialization
+- Increases efficiency and tech transfer
+- Encourages innovation
+
+<details><summary>Speaker notes</summary>
+
+Image: https://www.newint.com.au/blog/wp-content/uploads/2012/03/free-trade-agreements2.jpg
+
+</details>
+
+## Slide 45: Not everything is rosy with free trade...
+
+- Loss of outsourced jobs, leading to economic stagnation in certain areas
+- Exploitation of developing countries
+- Is specialization in low costs to pollute sustainable?
+- Countries have Industrial Policies to favor indsustries
+
+<details><summary>Speaker notes</summary>
+
+Image source: https://econfix.files.wordpress.com/2016/06/free-trade.jpg?w=404&h=296
+
+</details>
+
+## Slide 46: US Steel - Nippon Steel's $14.9 billion bid for U.S. Steel
+
+## Slide 47: (untitled)
+
+- https://www.technologyreview.com/2023/02/21/1068880/how-did-china-dominate-electric-cars-policy/
+
+## Slide 48: Protectionism: Tariffs
+
+- Tariffs: ‘an excise tax’ on imported goods
+- What happens to:
+- Consumer surplus?
+- Producer surplus?
+- Total surplus?
+- Government revenue?
+- Imports?
+
+## Slide 49: Protectionism: Quotas
+
+- Quotas: limits the quantity a good can be imported
+- What happens to:
+- Consumer surplus?
+- Producer surplus?
+- Total surplus?
+- Government revenue?
+- Imports?
+
+<details><summary>Speaker notes</summary>
+
+Image source: https://www.economicsonline.co.uk/Global\_economics/Tariffs\_and\_quotas.html
+
+</details>
+
+## Slide 50: One more Lecture Notebook
+
+- Four Plot notebook with sliders
+
+## Slide 51: AirBNB
+
+## Slide 52: (untitled)
+
+## Slide 53: AirBnB - other data companies AirDNA
+
+- https://www.airdna.co/airbnb-pricing-tool
+
+## Slide 54: AirBnb - activist data website - Project 1 data!
+
+- http://insideairbnb.com/san-francisco
+
+## Slide 55: Summary Data from Scraped Info
+
+## Slide 56: Global Issue
+
+## Slide 57: AirBNB
+
+- https://news.airbnb.com/wp-content/uploads/sites/4/2020/06/Project-Lighthouse-Airbnb-2020-06-12.pdf
+
+## Slide 58: Hiring Lots of Data Scientists
+

data/F24LS_md/Lecture 1 - Introduction and Overview.md

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+---
+title: "Lecture 1 - Introduction and Overview"
+type: slides
+week: 1
+source_path: "/Users/ericvandusen/Documents/Data88E-ForTraining/F24LS/Lecture 1 - Introduction and Overview.pptx"
+---
+
+## Slide 1: Data 88E: Economic Models
+
+- Lecture 1: Introduction and Overview
+
+## Slide 2: A fun aside - the logo derived from stonks meme
+
+## Slide 3: TL;DR of the course
+
+- Examine economics concepts through real-world data and data science methods.
+- Motivate economics topics through modeling
+- Practice Python skills while learning economics concepts.
+- 9th time being offered!
+
+## Slide 4: Jupyter as inspiration
+
+- Almost everything you’ll do will be in Jupyter, using Python.
+- Textbook
+- The textbook is compiled and structured via Jupyter Books, with each page written using Jupyter Notebooks
+- Interactivity
+- Jupyter Notebooks facilitates interactive computing, encouraging learning by doing and tinkering. This applies to the textbook too!
+- Data Centric
+- Jupyter Notebooks were built to conduct data analysis.
+- The course is an open source project  - you too can collaborate!
+
+## Slide 5: Why should I take this course?
+
+- Student Instructors: We built this course to be a class that we wish we could’ve taken when we were Freshmen or Sophomores. Essentially, it’s everything related to data science & economics that we wish we would’ve known a couple years ago.
+- This course will:
+- Prepare students for upper division economics courses and research.
+- Apply data science, computation, and visualization techniques to the field of economics based on real world data.
+- Survey economics subdomains including financial economics, development economics, macroeconomic policy, econometrics, and more.
+- Motivate modeling, the use of tools and techniques, explore the intersection of economics and data science.
+
+## Slide 6: Prerequisites
+
+- Data 8, or some basic programming/data science equivalent (e.g. STAT 20 w/ R).
+- It will be harder to follow on, and succeed, if you do not have Data 8.
+- Specifically there is a package  datascience
+- with Table commands
+- Economics coursework is not necessary, but will be helpful.
+- Python experience will be fundamental
+- If you are a Concurrent Enrollment student - you may have to decide for yourself!
+- Look at last year’s class assignments
+- Look at Data 8 assignments
+
+## Slide 7: What is a connector course?
+
+- The design of the course is for 1st/2nd year students - who are currently or recently taken Data 8  - https://www.data8.org/
+- Linked to topics and pace of Data 8
+- Connectors give a domain specific application of Data 8 toolset
+- If you haven’t taken Data 8 - the Data 8 textbook is also useful
+  - https://inferentialthinking.com/chapters/intro.html
+- There is a lot behind these materials that we weren’t able to fit into the course.
+- Find a study group - come to office hours
+- Ask questions on Ed for other students to answer?
+
+## Slide 8: Will I be challenged?
+
+- If you are a junior/senior with a programming background or have taken advanced upper division Econ classes, this course will be pretty easy. As a result, we expect you to:
+- Go above and beyond in the labs, dig into the programming and routines beyond just clicking through the notebooks.
+- Read the papers behind the materials in the class.
+- Think about the limitations in our presented methods.
+- Use these labs as a starting point and try some programming on your own.
+- There is a lot behind these materials that we weren’t able to fit into the course.
+- Help other students out - You can learn by teaching!
+- We get scores from Ed discussions on who answers other’s questions
+
+## Slide 9: You better help other students
+
+- You better help other students
+
+## Slide 10: A Caveat
+
+- This class a work in progress - while we’ve offered it for several semesters now, we’re still looking to continue improving on the content!
+- Basically it’s complicated, lots of complicated labs
+- You will help to participate, give feedback, and improve the course!
+- Hybrid Instruction in uncertain times - we have no idea how the semester will play out:  Omicron, COVID, Power Shutoff, People’s Park
+
+## Slide 11: Fall Semester Hex - back in my day
+
+## Slide 12: Data Paradise
+
+- You will be in data paradise this semester. We will largely clean the data for you.
+- After this class, expect to experience Paradise Lost.
+- “[Data scientist] respondents reported they spent most of their time cleaning data (60 percent), and [noted the] task to be the least enjoyable part of their job (57 percent).”
+- We would’ve liked to teach data cleaning as well in this course, but there simply wasn’t enough time :(
+
+## Slide 13: Expectations for in person instruction
+
+- This class is planned being taught in person. In case you cannot make it to class due to an emergency, please make a private Ed post explaining why by 11:59 pm on the Tuesday before lecture. If your excuse is legitimate, we will give an alternative method for you to make up the lecture.
+- DO NOT COME if you are sick
+
+## Slide 14: Student Instruction!
+
+- This class is created by students who were interested in these topics.
+- Students teach some of the classes! Or part of the classes!
+- Bennett - Macro
+- Peter - Environmental
+- Guest Speakers
+- And the class evolves and changes every semester:
+- Bear with us if it’s bumpy
+
+## Slide 15: Course Website: data88e.org
+
+- https://data88e.org/fa24/
+- Readings - Textbook
+- Lecture Slides
+- Lecture Notebook
+- Links to Labs / Projects
+- You don't have to do Lecture NB
+- But you will learn more if you do
+- There is no Bcourses for this class
+
+## Slide 16: Online platforms
+
+- Course website (https://www.data88e.org/sp24/)
+- Where all lectures, assignments, and discussions are posted.
+- Course textbook (https://data88e.org/textbook/content/intro.html)
+- Course textbook
+- DataHub (datahub.berkeley.edu)
+- Where you will work on all assignments (links on the course website automatically take you here).
+- Ed (https://edstem.org/us/courses/64772/discussion/)
+- A place to ask and answer questions about assignments and concepts.
+- Where all announcements are posted (exam logistics, new assignment released, etc).
+- Gradescope (gradescope.com, added via roster)
+- Where all assignments are submitted, and where all of your grades in this course will live.
+- Kaltura  (https://kaltura.berkeley.edu/my-channels)
+- Video recording of Lectures
+- PollEV  (PollEv.com/ericvandusen)
+- In class Polling and Attendance Check.                        These all have to sync / LTI so be patient
+
+## Slide 17: Eric Van Dusen
+
+- Not a Data Scientist!
+- PhD in Agricultural and Resource Economics - UC Davis
+- Worked on research projects in Economics and Ag Economics
+- Taught 2 Data Science Connectors
+  - Economic Development
+  - Reproducibility and Open Science
+- Teaching Honors Thesis Seminar
+- Economics 148 in Spring
+- ericvd@berkeley.edu
+
+## Slide 18: Eric Van Dusen
+
+- I am also staff in Data Science Undergraduate Studies
+  - Helped to build Major and Minor
+  - Lead on Data Science Connectors
+  - Lead on Data Science Modules - Curriculum
+  - Working on Outreach - e.g. Data 8 at Community Colleges
+    - Come and work with us if you are interested
+- Motivation to make these tools more widely used
+  - Break down the static textbook/slides paradigm
+  - Working with other Econ Faculty… EEP 147, ECON 172
+  - Several years working with Econ 140 - Econometrics
+    - If you have Econ classes that need Jupyter - let us know!
+
+## Slide 19: Econ 148 - https://www.econ148.org/sp24/
+
+- Econ department commissioned a class
+- New class in Spring 23
+- Will be taught again in Spring 24
+- Pandas
+- API
+- SQL
+- ML
+- Time Series
+
+## Slide 20: Concurrent Enrollment - Gradescope and Ed
+
+- Berkeley Students have priority (and like to shop)
+- You will probably get in if there are enough seats in the room
+- After admitted you will get added to Gradescope and Ed as the rosters sync
+
+## Slide 21: Grading
+
+- Attendance (13): 20%
+- Labs (10): 40%
+- Projects (4): 40%
+
+## Slide 22: Participation is 20% of your grade
+
+- In Person attendance is expected / compulsory
+- Option 1: Attend In person lecture - and complete Quiz / Poll
+- There will be random class sessions where there will be an in person exit ticket.
+- Option 2 - if you have a Ed approved excuse: Watch recorded lecture videos and take Gradescope quiz.
+
+## Slide 23: Labs
+
+- Labs are released in lecture (Wednesdays) and due Tues at 11:59pm.
+- Refer to the website (https://data88e.org/fa24/policies) for the late policy
+- Labs should take approx. 2-3 hours each week. We might begin the lab in lecture but it is expected that you will finish it on your own time.
+- Labs are graded on accuracy, not completion. There will be hidden tests.
+- We encourage you to come to office hours and post on Ed for help!
+- We encourage you to help each other without copying
+- There is no lab today.
+
+## Slide 24: Projects
+
+- Projects are released after lecture (Wednesdays) and due the second or third Tuesday at 11:59pm, meaning you have 2-3 weeks to work on them
+- Refer to the website (https://data88e.org/fa24/policies/) for the late policy
+- The projects will be similar in difficulty to that of Data 8, but a little bit shorter. Projects may go over new concepts.
+- We encourage you to come to office hours and post on Ed for help!
+  - Ed Mega Threads for each project.
+
+## Slide 25: Infrastructure and Support
+
+- Ed: ask your questions here!
+- Public Good - answer other people’s questions!
+- Search through other people’s questions
+- Course staff updates  ( eg if there are mistakes on our side)
+- Ed offers us metrics of engagement - answering on Ed can help your participation grade
+- Gradescope: make sure you are enrolled to submit assignments!
+- Autograding of Notebooks is part of the workflow
+- Run all cells in order / download zip / upload to GS
+
+## Slide 26: Office Hours
+
+- Office Hours / Lab Time:
+- Justin and Bennett:	Monday 2-4PM and Tuesday 12-2PM at Warren 101A
+- Online OH TBA on Ed
+- Professor: I will try to come to Tuesday OH and
+- By appointment (email ericvd@berkeley.edu)
+
+## Slide 27: Infrastructure and Support
+
+## Slide 28: Policies
+
+- Please do not plagiarize. This is against the code of conduct.
+- We encourage working and studying with fellow classmates, but all work you turn in must ultimately be your own.
+- For a comprehensive list of the course policies, please refer to the course website (https://data88e.org/fa23/policies/).
+- ChatGPT - Gemini - Generative AI !?!
+- You are here to learn Python Data Science
+- You are here to learn Economics
+- Learning the basics matters
+- It may give you the wrong answers
+  - - autograder is picky, expecting a certain set of commands
+  - Sometimes the answers are super obvoius
+
+## Slide 29: Our Team
+
+- Bennett Somerville
+- Computer Science
+- Justin Wang
+- Data Science &
+- Economics
+
+## Slide 30: Testimonials from Previous Students
+
+- Bennett
+- Justin
+
+## Slide 31: Metacognition ~ Praxis ~ Process of Learning
+
+- Tools built for reproducibility are powerful for pedagogy
+  - Key elements of Open Science in teaching
+- Data Science curriculum built on Open Source tools
+  - Explicit and Implicit Learning
+  - First year students learn Jupyter/ Numpy  ~ bridge to more
+  - Teaching staff learn Github / open publishing
+- Open Source - Scientific Python ecosystem
+  - Inter-related web of software
+- “Notebook based instruction”  - is it an evolution in how we teach?
+
+<details><summary>Speaker notes</summary>
+
+Balaji
+
+</details>
+
+## Slide 32: Demo - Financial Benefits of a Major
+
+## Slide 33: https://github.com/fivethirtyeight/data/tree/master/college-majors
+
+## Slide 34: All Grads:  https://career.berkeley.edu/start-exploring/where-do-cal-grads-go/
+
+## Slide 35: Econ Grads:
+
+- Econ Grads:
+
+## Slide 36: Data Science Grads:
+
+## Slide 37: Lets go to the Lab - Earnings by Major
+
+- Cal First Destination survey - from 2019
+- ACS - American Community Survey
+- Selection of those 28 and younger
+- Data need to be merged by majors!  Different sets of majors
+- EECS
+- Data Science ( Data Analytics, Data Engineering)
+- Earnings of Majors - Over time
+
+## Slide 38: CS Majors
+
+- 331 responses
+- Avg Salary $107k
+
+## Slide 39: What’s up with Music
+
+- Music majors at Berkeley?
+
+## Slide 40: Outcomes by Major
+
+- https://www.universityofcalifornia.edu/infocenter/berkeley-outcomes
+
+## Slide 41: Research in Higher Education - role of UC
+
+## Slide 42: Economics Majors earn more?
+
+## Slide 43: GPA cutoffs for a major lead to lower shares of URM
+
+## Slide 44: Amal Bhatnagar!
+
+- DS and Econ 2021
+- CDSS News story  -
+
+## Slide 45: https://sites.google.com/berkeley.edu/datascienceineconomics
+
+- Data Science in Undergraduate Economics Workshop
+