gwern comments on Rationality Quotes September 2011 - Less Wrong

7 Post author: dvasya 02 September 2011 07:38AM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (482)

You are viewing a single comment's thread. Show more comments above.

Comment author: gwern 03 September 2011 02:34:35AM *  20 points [-]

How about http://www.psychologicalscience.org/index.php/news/releases/are-the-wealthiest-countries-the-smartest-countries.html ?

They found that intelligence made a difference in gross domestic product. For each one-point increase in a country’s average IQ, the per capita GDP was $229 higher. It made an even bigger difference if the smartest 5 percent of the population got smarter; for every additional IQ point in that group, a country’s per capita GDP was $468 higher.

Citing "Cognitive Capitalism: The impact of ability, mediated through science and economic freedom, on wealth". (PDF not immediately available in Google.)

EDIT: efm found the PDF: http://www.tu-chemnitz.de/hsw/psychologie/professuren/entwpsy/team/rindermann/publikationen/11PsychScience.pdf

Or http://www.nickbostrom.com/papers/converging.pdf :

Economic models of the loss caused by small intelligence decrements due to lead in drinking water predict significant effects of even a few points decrease (Salkever 1995; Muir and Zegarac 2001). Because the models are roughly linear for small changes, they can be inverted to estimate societal effects of improved cognition. The Salkever model estimates the increase in income due to one more IQ point to be 2.1% for men and 3.6% for women. (Herrnstein and Murray 1994) estimate that a 3% increase in overall IQ would reduce the poverty rate by 25%, males in jail by 25%, high-school dropouts by 28%, parentless children by 20%, welfare recipients by 18%, and out-of-wedlock births by 25%.

EDITEDIT: high IQ predicts superior stock market investing even after the obvious controls. High IQ types are also more likely to trust the stock market enough to participate more in it

Comment author: gwern 13 August 2015 06:26:09PM *  2 points [-]

"Costs and benefits of iodine supplementation for pregnant women in a mildly to moderately iodine-deficient population: a modelling analysis" (mirror; appendices), Monahan et al 2015

Background: Results from previous studies show that the cognitive ability of off spring might be irreversibly damaged as a result of their mother's mild iodine deficiency during pregnancy. A reduced intelligence quotient (IQ) score has broad economic and societal cost implications because intelligence affects wellbeing, income, and education outcomes. Although pregnancy and lactation lead to increased iodine needs, no UK recommendations for iodine supplementation have been issued to pregnant women. We aimed to investigate the cost-effectiveness of iodine supplementation versus no supplementation for pregnant women in a mildly to moderately iodine-deficient population for which a population- based iodine supplementation programme-for example, universal salt iodisation-did not exist.

Methods: We systematically searched MEDLINE, Embase, EconLit, and NHS EED for economic studies that linked IQ and income published in all languages until Aug 21, 2014. We took clinical data relating to iodine deficiency in pregnant women and the effect on IQ in their children aged 8-9 years from primary research. A decision tree was developed to compare the treatment strategies of iodine supplementation in tablet form with no iodine supplementation for pregnant women in the UK. Analyses were done from a health service perspective (analysis 1; taking direct health service costs into account) and societal perspective (analysis 2; taking education costs and the value of an IQ point itself into account), and presented in terms of cost (in sterling, relevant to 2013) per IQ point gained in the off spring. We made data-supported assumptions to complete these analyses, but used a conservative approach that limited the benefits of iodine supplementation and overestimated its potential harms.

Findings: Our systematic search identified 1361 published articles, of which eight were assessed to calculate the monetary value of an IQ point. A discounted lifetime value of an additional IQ point based on earnings was estimated to be £3297 (study estimates range from £1319 to £11 967) for the off spring cohort. Iodine supplementation was cost saving from both a health service perspective (saving £199 per pregnant woman [sensitivity analysis range -£42 to £229]) and societal perspective (saving £4476 per pregnant woman [sensitivity analysis range £540 to £4495]), with a net gain of 1·22 IQ points in each analysis. Base case results were robust to sensitivity analyses.

Interpretation: Iodine supplementation for pregnant women in the UK is potentially cost saving. This finding also has implications for the 1·88 billion people in the 32 countries with iodine deficiency worldwide. Valuation of IQ points should consider non-earnings benefits-eg, health benefits associated with a higher IQ not germane to earnings.

IQ estimates:

Our systematic search identified 1361 published articles, of which eight studies 47-54 passed quality criteria and were assessed to calculate the monetary value of an IQ point (appendix p 4). The quality criteria were as follows: an individual's IQ is used and is not a proxy; variables are clearly specified; IQ measure follows a conventional normal distribution with a mean of 100 and standard deviation of 15 or sufficient information is included in the study to allow the IQ measure's distribution to be converted into one (for cross study comparability); and the results reported in currency form have the applicable year stated. Most of the studies valued an IQ point on the basis of its effect on an individual's income (appendix p 3). The issue of differences in scaling of IQ tests hindered the comparability across studies. The value of an IQ point, derived from the systematic search and applied to the unborn cohort, comes from the lifetime earnings premium of an additional IQ point. This is calculated to be £3297 (study estimates range from £1319 to £11967; after adjustment with life tables).

All the details are in the Monahan et al 2015 appendices

One study looked at people's willingness to pay (WTP) for an additional IQ point. 4 Five studies used econometric regressions to determine the individuals IQ's effect on their subsequent income, 5-9 whereas two studies were cost benefit analysis on reducing lead exposure. 10,11 Only one of the studies included in the systematic literature search was not set in the USA. 5...In keeping with the conservative nature of the model, the relatively high earnings premium from IQ points from Schwartz 10 and Salkever 11 are excluded on the basis that the effect may be overstated.

The 8 studies are listed on pg8 of the appendix, Table 1:

(Note that by including covariates that are obviously caused by IQ rather than independent, and excluding any attempt at measuring the many positive externalities of greater intelligence, these numbers can usually be considered substantial underestimates of country-wide benefits.)