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Report 232 - How Markets React to Election Results

Fri, 6 Jul 2007 06:13:14 -0500

Competing political parties often declare that their economic policies are best, and try to convince voters that the winner will be able to influence the economy. One should ask, however, do markets really care about election outcomes? Are there differences in market reactions to Presidential versus Congressional elections? Can one say which branch of government is more influential for economic policy-making?

Report 231 - Does the Internet Help Find Jobs?

Wed, 14 Mar 2007 12:15:04 -0500

The Internet has dramatically increased the amount of information available to both job seekers and employers. Economists and labor market experts have predicted that this would change the way people find jobs. It is now time to compare these predictions with people’s actual behavior. Has the matching between workers and employers become easier? And does the Internet facilitate the transition out of unemployment in the same way as it facilitates the move to a new job by the currently employed?

Report 230 - Markets for Political Talent

Wed, 7 Mar 2007 11:19:23 -0600

Career politicians are among society’s most important people, as their job is crucial for ensuring social cohesion and economic prosperity. Yet, they are rarely a generation’s most talented individuals. More often, instead, they are mediocre people. Where does such mediocrity come from? Is the initial recruitment of politicians important for determining the decision to enter this profession?

Report 229 - Is Transparency Always Beneficial to Shareholders?

Wed, 28 Feb 2007 15:24:38 -0600

The recent wave of corporate governance reforms has focused on transparency as a key requisite to provide investors with enough information to assess managers’ performance. Regulators also consider transparency effective for avoiding future frauds, like those of Enron or Tyco. But are there costs to transparency, beyond its clear benefits? How should firms and regulators balance such costs and benefits?

Report 228 - Does US Visa Policy Affect Visitor Inflows?

Tue, 27 Feb 2007 11:23:08 -0600

The stark change in US immigration policy following the terrorist attacks of 9/11 has resulted in a sizeable decrease of business and tourist arrivals from abroad, which still have to regain pre-9/11 levels. Several foreign governments have complained about the burden of the new visa rules, which has also stirred debate within the United States. But should the reduction in arrivals be attributed to changes in visa policy or other factors?

Report 227 - Double Taxation and International M&As

Wed, 21 Feb 2007 03:46:23 -0600

A growing number of mergers and acquisitions (M&As) involves firms from different countries. In these international deals, the locations of the acquiring and target companies determine the extent to which their profits are double taxed. How important is the double taxation of corporate profits for choosing the location of the merged entity? Does the effect of taxation have any sizeable effect on national economies?

Report 226 - Reforming the Legal Profession

Tue, 20 Feb 2007 08:01:38 -0600

The market for legal services is crucial for the efficient functioning of any economy. This market is also typically one of the least competitive and most protected, especially in advanced economies. Several reform proposals have been advanced in recent years, with the goal of modernizing the profession and making the legal market more competitive. Would market-oriented reforms of the legal profession be beneficial to lawyers, their clients, and the economy?

Report 225 - Why Do So Many Consumers Go Bankrupt?

Wed, 14 Feb 2007 10:43:00 -0600

The number of consumer bankruptcy filings in the United States has increased sharply in the last 30 years, from 1.4 to 8.5 per thousand working-age adults. Where do these dramatic changes come from? Are they explained by the deregulation of the consumer credit market? Do they result from increased information-sharing among lenders made possible by technological progress? Or do more bankruptcies come from the sharp increase in earnings volatility?

Report 224 - Environmental Policy Design

Tue, 13 Feb 2007 04:03:57 -0600

Environmental policy has become a major issue in most countries. The public is highly concerned about the long-term effects of global warming, the dangers of nuclear waste disposal, and the consequences of acid rains and of the emission of ozone-depleting gases. Estimating the costs and benefits of alternative policies is very hard: is there a rational policy approach to such challenges?

Report 223 - How Small Investors Affect Stock Returns

Wed, 7 Feb 2007 11:10:15 -0600

How important are retail investors for the determination of stock returns? Institutional investors now account for most of the trading in stocks, and many economists expect retail investors to hold little sway in stock price formation. However, it is also reasonable to expect that small investors might have different views on the market which might lead them to influence price. Which view is correct?

Q&A 19 - Social Security in an Aging World

Fri, 23 Feb 2007 08:43:57 -0600

Wharton Professor Olivia S. Mitchell answered readers' questions on how demographic changes affect financial markets and public policy, on global approaches to social security and pension reform, and on public vs. private forms of retirement savings.

Silly Economist - Potternomics

Wed, 14 Mar 2007 13:59:17 -0500

Scholastic, a publishing company, announced that "Harry Potter and the Deathly Hallows", the latest book in J.K. Rowling’s saga due to be released on July 21, will be printed in 12 million copies in its first run. The book’s list prices are $34.99 for the standard edition and $65 for the deluxe edition. >> Email your semi-serious comment to:
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