894 Posts Found

Shakeouts are a common feature of nascent industries. IESE visiting professor Luís Cabral proposes a novel explanation for shakeouts based on sunk costs and technological uncertainty. Fearing they will back the wrong horse, firms initially invest conservatively, only expanding to their optimal capacity once the winning technology emerges, thereby triggering a shakeout.

Content: Article | Author: Luís Cabral | Source: IESE Insight | Subjects: Economics, History

All economic issues ultimately boil down to assessing whether people are better or worse off. If you look at the correlation between GDP per capita across countries and the average score on the wellbeing scale, we see that those two things have a correlation of 0.82. That’s just about as correlated as any two things I’ve ever seen.

Content: Quotation | Source: Gallup Management Journal | Subject: Economics

Not just a rundown of the top book choices by strategy+business, but a good look at the topic in general and the issues discussed in particular.

Content: Article | Author: James O’Toole | Source: strategy+business | Subject: Economics

Gary B. Gorton of Yale University’s School of Management explains in some detail how in August 2007, the financial markets found themselves in the grip of a phenomenon thought to have been rendered impossible by various safeguards: a banking panic of the sort that rocked global capitalism a dozen times between 1837 and 1907. This time, however, the spectacle did not consist of individual depositors … [ Read more ]

Content: Book | Author: Gary B. Gorton | Subject: Economics

Even as the world’s population reaches 7 billion, the rate of growth is slowing and workforces are aging. Companies and countries can prosper by preparing for the changes to come.

Content: Article | Authors: Chadi N. Moujaes, Mazen Ramsay Najjar, Richard Shediac | Source: strategy+business | Subjects: Demographics, Economics

Rachel Botsman talks about the power of collaboration and sharing through network technologies, and on how it will transform business, consumerism and the way we live.

Editor’s Note: I think it should be interesting to re-watch this video in 5, 10, 15 years and see how the topic unfolds.

Content: Multimedia Content | Author: Rachel Botsman | Source: TED Conferences LLC | Subjects: Economics, IT / Technology / E-Business

Should we pay children to read books or to get good grades? Should we allow corporations to pay for the right to pollute the atmosphere? Is it ethical to pay people to test risky new drugs or to donate their organs? What about hiring mercenaries to fight our wars? Auctioning admission to elite universities? Selling citizenship to immigrants willing to pay?

In What Money Can’t Buy, … [ Read more ]

Content: Book | Author: Michael J. Sandel | Subject: Economics

Contemporary American society has the look of a split-level structure. Its political and social institutions distribute rights and privileges universally and proclaim the equality of all citizens. Yet economic institutions, with efficiency as their guiding principle, create disparities among citizens in living standards and material welfare. This mixture of equal rights and unequal economic status breeds tensions between the political principles of democracy and the … [ Read more ]

Content: Book | Author: Arthur M. Okun | Subject: Economics

In football, there is a rigid separation of the real market — the games played on Sundays — from the expectations market, or the betting that takes place prior to the game. No participant in the real market is permitted to participate in any way in the expectations market. If they do, they risk a lifetime ban for even one infraction. There is an even … [ Read more ]

Content: Article | Author: Roger L. Martin | Subjects: Corporate Governance, Economics, Finance

They’re fractious, frequently wrong, and have lost much of the public’s faith. But their insights are still valuable — as long as you don’t expect them to predict the future.

Content: Article | Author: Noah Smith | Source: The Atlantic Monthly | Subject: Economics

It may seem that we’re living in a borderless world where ideas, goods and people flow freely from nation to nation. We’re not even close, says Pankaj Ghemawat. With great data (and an eye-opening survey), he argues that there’s a delta between perception and reality in a world that’s maybe not so hyperconnected after all.

Content: Multimedia Content | Author: Pankaj Ghemawat | Source: TED Conferences LLC | Subjects: Economics, International

For the last two decades, Aswath Damodaran has dedicated the first two weeks of each new year to a ritual. He obtains/collects/downloads data on all publicly traded companies listed globally, using a variety of data sources, and then analyzes and presents the data, aggregated at a number of different levels: by country, by region (US, Europe, Emerging Markets, Japan, Australia & Canada) and by industry. … [ Read more ]

Content: Online Resource | Author: Aswath Damodaran | Source: NYU Stern School of Business | Subjects: Economics, Finance, Free Stuff / Tools, Reference / Search

James Glattfelder studies complexity: how an interconnected system — say, a swarm of birds — is more than the sum of its parts. And complexity theory, it turns out, can reveal a lot about how the economy works. Glattfelder shares a groundbreaking study of how control flows through the global economy, and how concentration of power in the hands of a shockingly small number leaves … [ Read more ]

Content: Multimedia Content | Author: James B. Glattfelder | Source: TED Conferences LLC | Subject: Economics

We now know that the shareholders and the financial industry won that battle for corporate control. In the business schools, the finance function emerged as top dog and the economists began to apply the teachings of their discipline to the firm via organizational economics (agency theory and transaction cost economics). The resulting shareholder value model of the firm has dominated for the last thirty years … [ Read more ]

Content: Quotation | Author: David K. Hurst | Source: Ivey Business Journal | Subjects: Economics, Finance, Leadership, MBA Related

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Milton Friedman, Senior Research Fellow, Hoover Institution and Nobel Laureate in Economic Sciences grades the achievements of the Clinton administration and evaluates the programs the President proposed in his 1999 State of the Union address. [Hat tip to FinanceProfessor.com]

Editor’s Note: Topical, a bit dated, and US-centric, but considering Friedman’s stature in the world of economics, still worth a view.

Content: Multimedia Content | Author: Milton Friedman | Subject: Economics

In a sweeping narrative, the author of the megabestseller A Beautiful Mind takes us on a journey through modern history with the men and women who changed the lives of every single person on the planet. It’s the epic story of the making of modern economics, and of how economics rescued mankind from squalor and deprivation by placing its material fate in its own hands … [ Read more ]

Content: Book | Author: Sylvia Nasar | Subject: Economics

In football, there is a rigid separation of the real market — the games played on Sundays — from the expectations market, or the betting that takes place prior to the game. No participant in the real market is permitted to participate in any way in the expectations market. If they do, they risk a lifetime ban for even one infraction. There is an even … [ Read more ]

Content: Quotation | Author: Roger L. Martin | Subjects: Compensation, Corporate Governance, Economics, Finance

With the British Industrial Revolution, part of the world’s population started to experience extraordinary economic growth—leading to enormous gaps in wealth and living standards between the industrialized West and the rest of the world. This pattern of divergence reversed after World War II, and now we are midway through a century of high and accelerating growth in the developing world and a new convergence with … [ Read more ]

Content: Book | Authors: Michael S. Deimler, Michael Spence | Subjects: Economics, International

American capitalism is in dire straits, caught in a perilous pattern of increasing volatility, decreasing investor returns, and ongoing bad behavior by executives. And it’s getting worse. Since the turn of the twenty-first century, we’ve seen two massive value-destroying market meltdowns and a string of ethics breaches, including accounting scandals, options-backdating schemes, and the subprime mortgage debacle.

Just what is going on here? Is it the … [ Read more ]

Content: Book | Author: Roger L. Martin | Subjects: Corporate Governance, Economics, Management