Agregador de fuentes
The Neediest Cases Fund: Sharing His Struggle to Help Others Escape the Stigma of H.I.V.
Books of The Times: An Account of Surviving Assault Mixes Horror and Humor
Skin Deep: When a Man Needs a Safe Place
Economic Scene: How Care for Elders, Not Children, Denies Women a Paycheck
Feature: Alka Pradhan v. Gitmo
Why Doesn’t the N.F.L. Use Tracking Technology for First-Down Calls?
Rebels in Yemen Fire Second Ballistic Missile at Saudi Capital
Personal Health: How to ‘Winterize’ Your Dog
Nonfiction: Illuminating the Past, One Precious Book at a Time
Microsoft Moves to End Secrecy in Sexual Harassment Claims
Restaurant Review: Schnitzel and Strudel and Other Favorite Things, at Wallsé
The Sweet Spot: When the Body-Shaming Bully on Social Media Is Mom
Tax Plan, Amtrak, John Skipper: Your Tuesday Briefing
Intangible assets are changing investment
WHEN you work as an equity analyst at an investment bank, your task is clear. It is to comb all the statements made by corporate executives, to scour the industry trends and arrive at an accurate forecast of the company’s profits. Achieve this and your clients will be happy and your bonus cheque will have many digits.
But is all this effort worthwhile? Not as much as it used to be, according to Feng Gu and Baruch Lev, writing in a recent issue of Financial Analysts Journal*. The authors imagined that investors could perfectly forecast the next quarter’s earnings for all companies. They then assumed that investors bought all the stocks that they expected to meet or beat the consensus of analysts’ forecasts; and that investors could short (ie, bet on a declining price) the stocks of those that were predicted not to reach their estimates. They made their investment two months before the end of a quarterly reporting period and got out of their positions one month after the...
Countries rarely default on their debts
VENEZUELA is an unusual country. It is home to the world’s largest reserves of oil and its highest rate of inflation. It is known for its unusual number of beauty queens and its frightening rate of murders. Its bitterest foe, America, is also its biggest customer, buying a third of its exports.
In defaulting on its sovereign bonds last month (it failed to pay interest on two dollar-denominated bonds by the end of a grace period on November 13th), Venezuela is also increasingly unusual. The number of governments in default to private creditors fell last year to its lowest level since 1977, according to the Bank of Canada’s database. Of the 131 sovereigns tracked by S&P Global, a rating agency, Mozambique is the only other country in default, having missed payments on its Eurobond (and failed to make good on guaranteed loans to two state-owned enterprises). Walter Wriston, a former chairman of Citibank, earned ridicule for once declaring that “countries don’t go bust”. But they don’t much...
Have yourself a dismal Christmas
ONLY an economist would think to ask whether Christmas is efficient. In 1993 Joel Waldfogel, then a professor at Yale University, turned a lunchtime conversation with colleagues into a paper entitled “The deadweight loss of Christmas”, which argued that, no, it is not. That gift-giving might actually be bad is the kind of opinion which breeds a deep mistrust of economists—loathing is perhaps too strong—among those not schooled in the dismal science. It is also just the sort of analytical insight on which economists pride themselves: counterintuitive, irreverent and interesting. But they should perhaps be less pleased with themselves. The way they think about the most festive time of the year reveals something important about the shortcomings of the field’s approach to human behaviour.
Mr Waldfogel’s notion was a clever one. Massive amounts of money are spent on holiday presents; it makes sense to ask whether such spending leaves the world better off. In buying gifts, people do their best to...