Steve Tadelis of Berkeley and Florian Zettelmeyer of Northwestern demonstrate that detailed information for used cars actually boosts up sales, probably by boosting their trust and confidence in products.
Tadelis also showed that narrowing choices for consumers can actually boost sales, and his findings are now applied on eBay.
Economists at Google use search terms like "job," "benefits," and "solitaire," that correlate closely with unemployment claims to help policy.
2012년 11월 29일 목요일
2012년 11월 28일 수요일
Data Dump Nov. 29th
- Kuwait's Investment Dar is selling its 50% stake in Aston Martin
- Blackrock launches its global infrastructure debt
- Branded bars are being tried in Latin America by brewers like AmBev
- DR Congo's president asks for a chapter 7 U.N. mandate in response to the M23's capture of Goma
- Samsung admits to violations of labor laws in China. Ericsson sues Samsung for IP infringement
- Israel's defense minister Ehud Barak quits.
- Blackrock launches its global infrastructure debt
- Branded bars are being tried in Latin America by brewers like AmBev
- DR Congo's president asks for a chapter 7 U.N. mandate in response to the M23's capture of Goma
- Samsung admits to violations of labor laws in China. Ericsson sues Samsung for IP infringement
- Israel's defense minister Ehud Barak quits.
EU's Two Functions
1. A legal framework to solve problems
2. Waiting room for the people who want to join the Eurozone.
Biting criticisms from Wolfgang Munchau who says that "the marginalization of the EU at the expense of the eurozone also has implications for other policies...by insisiting on an EU budget freeze, Mr. Cameron is ultimately doing the eurozone a favor. By undermining the EU, he provides further incentives for the eurozone to grasp its collective interest. I support him" -FT Commentary
2. Waiting room for the people who want to join the Eurozone.
Biting criticisms from Wolfgang Munchau who says that "the marginalization of the EU at the expense of the eurozone also has implications for other policies...by insisiting on an EU budget freeze, Mr. Cameron is ultimately doing the eurozone a favor. By undermining the EU, he provides further incentives for the eurozone to grasp its collective interest. I support him" -FT Commentary
Problem with "Sending Party Pays" Systems
The International Telecommunications Union, which operates under the auspices of the U.N. is holding discussions over how the internet should be regulated, or not regulated. One of the proposals, forwarded by India and Middle Eastern countries and Africa, involves companies like Google and Facebook paying for telecoms networks carrying their traffic. This is problematic, because then the dissemination of information will be selective to profit-yielding ones, and discourage public investment in infrastructure. Fronts, such as securing quality of the internet, can also be used as a disguise for censorship of information.
System of Aportionment Taxation
Taxes are based on what share of a company's total activity took place within a region. The most notable being the "Massachusetts formula," it gives equal weight to sales, payroll, and assets. Applying this standard on a global scale, John Kay argues, is an effective method of taxation that will reduce avoidance.
The Falling Sun
Undergraduate enrollment of Japanese students in US universities has fallen by more than 50$ since 2000. In the last six years, there have been seven prime ministers.
Data Dump Nov.28
- The growth rate in administrators at U.S. universities from 1993 to 2009 is 60% (CAGR 3%).
- BP's $4.5 bn. settlement will be paid out over five years. Criminal fine of $1.26 bn. will be paid out to the Justice Department, National Fish and Wildlife Foundation for cleanup, NAS for research and some to the
- Worldwide M&A deal volume has plunged 53% since 2007, average deal size 25% -to $149mn.
- The time during which India suffered from massive
- The African Union has agreed to send troops to battle Islamist extremists who have taken over northern Mali
- Rance lost its triple A rating from Moody's
- Jeffries is now ownd by Leucadia
- Apple and HTC ended their legal issues by going into a 10-year licensing agreement.
- A period of severe and widespread hunger in India was called a period of "ship-to-mouth" because many depended on the sale of America's surplus grain for sustenance.
- BP's $4.5 bn. settlement will be paid out over five years. Criminal fine of $1.26 bn. will be paid out to the Justice Department, National Fish and Wildlife Foundation for cleanup, NAS for research and some to the
- Worldwide M&A deal volume has plunged 53% since 2007, average deal size 25% -to $149mn.
- The time during which India suffered from massive
- The African Union has agreed to send troops to battle Islamist extremists who have taken over northern Mali
- Rance lost its triple A rating from Moody's
- Jeffries is now ownd by Leucadia
- Apple and HTC ended their legal issues by going into a 10-year licensing agreement.
- A period of severe and widespread hunger in India was called a period of "ship-to-mouth" because many depended on the sale of America's surplus grain for sustenance.
The Issue of Chaebols
Facts:
- The top 10 chaebol make up more than half the value of of the 1,779 companies on the Korea Stock Exchange.
- Cross-holdings of subsidiaries make ownership structures opaque.
Case against unwinding them:
- "To outsiders, it may seem like the economy is doing relatively well, but here are people stuck in the cracks of society where chaebol wealth was supposed to trickle down" -Kim Woo Chan, a prof. at Korea University Business School
- The chairman of Hanhwa group killed a man in 2008 by striking him with a steel pipe and received a pardon. Accusations of embezzlement are made against some chaebol owners.
Chaebols' defense:
- Limiting or banning cross-shareholdings would make them vulnerable to foreign takeovers,
- The top 10 chaebol make up more than half the value of of the 1,779 companies on the Korea Stock Exchange.
- Cross-holdings of subsidiaries make ownership structures opaque.
Case against unwinding them:
- "To outsiders, it may seem like the economy is doing relatively well, but here are people stuck in the cracks of society where chaebol wealth was supposed to trickle down" -Kim Woo Chan, a prof. at Korea University Business School
- The chairman of Hanhwa group killed a man in 2008 by striking him with a steel pipe and received a pardon. Accusations of embezzlement are made against some chaebol owners.
Chaebols' defense:
- Limiting or banning cross-shareholdings would make them vulnerable to foreign takeovers,
2012년 11월 22일 목요일
Data Dump Nov. 23, 2012
- Beijing prints maps showing the South China Sea, including Taiwan, as belonging to China on its passports.
- Matteo Renzi, currently the mayor of Florence uprooting the dinosaurs of Italy's left "Democratic Part,"uses Fun's We Are Young as the his campaign theme song. "set the world on fire," the song says.
- Autonomy booked products sold at losses as marketing costs.
- Kasab, the last remaining gunman of the 26/11 attack on India in 2008 has been hanged.
- Khamenei called on the parliament not to question Ahmadinejad over the fall of rials.
- Wolfgang Schauble, dubbed "cheerful Sissyphus," tops the FT ranking for finance ministers for the second time.
- Egypt needs $4.3bn from the IMF
- Matteo Renzi, currently the mayor of Florence uprooting the dinosaurs of Italy's left "Democratic Part,"uses Fun's We Are Young as the his campaign theme song. "set the world on fire," the song says.
- Autonomy booked products sold at losses as marketing costs.
- Kasab, the last remaining gunman of the 26/11 attack on India in 2008 has been hanged.
- Khamenei called on the parliament not to question Ahmadinejad over the fall of rials.
- Wolfgang Schauble, dubbed "cheerful Sissyphus," tops the FT ranking for finance ministers for the second time.
- Egypt needs $4.3bn from the IMF
2012년 11월 19일 월요일
Three FC's
What's pushing investors into fixed income?
- Financial Crisis
- Flash Crashes
- Fiscal Cliff
- Financial Crisis
- Flash Crashes
- Fiscal Cliff
2012년 8월 12일 일요일
"Second Deleveraging"
A term coined by Manmohan Singh, of the IMF, a "second deleveraging" refers to the unwinding of debt to meet the demands of tightening demand for collateral. For example, the $2,000bn of the derivatives sector functions without collateral.
India's Power Problems
Coverage from the Financial Times on the Indian crisis:
- Anil Ambani, the head of Reliance Power warns that "our version of the U.S. subprime crisis"
- Energy networks need fresh investments, but the banks are already overexposed to energy companies in frail health. Debt laden energy companies and frail financial industry are in a perilous embrace.
- The rich are investing heavily in power plants and generators, but resources and quality grid systems are in need. Coal India, 80% of which is owned by the Indian government, is inefficient and fails to meet regulatory and environmental clearances. Despite owning 7% of the world's recoverable coal reserves, Coal India spent $5bn on importing cool.
- According to a director at StanChart, half of new credit went to infrastructure in power from 2008 and 2011. Now $500bn of loans to power sector is at risk. 90% could default.
- Only two out of India's states are not loss-makers, and cannot pay producers or invest in distribution and transmission.
- Anil Ambani, the head of Reliance Power warns that "our version of the U.S. subprime crisis"
- Energy networks need fresh investments, but the banks are already overexposed to energy companies in frail health. Debt laden energy companies and frail financial industry are in a perilous embrace.
- The rich are investing heavily in power plants and generators, but resources and quality grid systems are in need. Coal India, 80% of which is owned by the Indian government, is inefficient and fails to meet regulatory and environmental clearances. Despite owning 7% of the world's recoverable coal reserves, Coal India spent $5bn on importing cool.
- According to a director at StanChart, half of new credit went to infrastructure in power from 2008 and 2011. Now $500bn of loans to power sector is at risk. 90% could default.
- Only two out of India's states are not loss-makers, and cannot pay producers or invest in distribution and transmission.
Oakland vs. Goldman Sachs
The different municipalities entered interest-rate swaps with Goldman Sachs, in which the city paid the bank fixed amounts in return of payments that rise with interest rates. Now that these interest rates are zero, the cities are paying big -the Refund Transit Coalition estimates $2.5bn a year for the city. Litigate Goldman and face higher interest rates in the future, or suffer the necessary pains of honoring private conflicts.
2012년 8월 4일 토요일
Data Dump 3
- Japan Airlines plans for an IPO that could raise $8.5bn. It went bankrupt in 2000, was bailed out by the government that has exempted it from a significant amount of taxes. It's cut its staff by a third and slashed pensions. It now operates smaller planes which could be disadvantageous in the long-run.
Banking Q2 Reports
- BNP Paribas' profits fall 13%. Capital markets revenue down 33%
- Standard Charter's is up 11.3%
- Standard Charter's is up 11.3%
2012년 8월 2일 목요일
Data Dump
- UBS' cost-to-income ratio is 85%
- India caps power prices. India's state power utilities have a lot of debt and import lots of energy.
- 860tn cubic feet of technicall recoverable resources in shale according to the EIA.
- Man. U in a seven year deal with Chevrolet
- Assets managed by private equity hit $3tn.
- People are demonstrating in Swaziland, the last remaining absolute monarchy, for political representation.
- Deutsche is to slash 1,900 jobs. Outch.
- Korean Development bank will not buy HSBC's retail arm in ROK.
- Aer Lingus management urges shareholders to reject Ryanair's bid for takeover. Ryanair's been squeezed to raise prices as a result of falling demand for summer travel.
- India caps power prices. India's state power utilities have a lot of debt and import lots of energy.
- 860tn cubic feet of technicall recoverable resources in shale according to the EIA.
- Man. U in a seven year deal with Chevrolet
- Assets managed by private equity hit $3tn.
- People are demonstrating in Swaziland, the last remaining absolute monarchy, for political representation.
- Deutsche is to slash 1,900 jobs. Outch.
- Korean Development bank will not buy HSBC's retail arm in ROK.
- Aer Lingus management urges shareholders to reject Ryanair's bid for takeover. Ryanair's been squeezed to raise prices as a result of falling demand for summer travel.
2012년 8월 1일 수요일
"Dormant Membership"
Hans Werner Sinn and Friedrich Sell have a shining new idea for the eurozone: let the struggling eurozone countries freeze their membership, re-introduce their national currency, and return to the euro through ERM II. Exchange rate can then re-enter as a tool to restore competitiveness. They cite good historical examples, such as the time Germany decoupled the D-mark from its link to the dollar in October 1969 and later resetting it at a rate 9% lower or Argentina breaking its peg. MR=MC would question the legal aspects of putting a freeze on struggling Eurozone countries' membership to the euro though. How would bonds be re-denominated? At what rate?
Economics Shall Prevail
"Equally, economics is not the only social science engaged in this race: our friends in political science and sociology use similar tools; computer scientists are grappling with “big data” and machine learning; and statisticians are developing new tools. Whichever field adapts best will win. I think it will be economics. And so economists will continue to broaden the substantive areas we study. Since Gary Becker, we have been comfortable looking beyond the purely pecuniary domain, and I expect this trend towards cross-disciplinary work to continue."
- Justin Wolfers, UPenn
- Justin Wolfers, UPenn
Points Against Sarbox
Francis McKenna provides the following points about Sarbox:
- PwC was unable to detect Satyam's $1bn fraud
- Big Four audited the banks before the crisis.
- PwC has been paid $500m in fees over the five years but J.P. Morgan's trades mistakes still happened.
- Audit companies still encourage partners to sell additional services to audit partners.
- They are paid by the companies they audit.
- PwC was unable to detect Satyam's $1bn fraud
- Big Four audited the banks before the crisis.
- PwC has been paid $500m in fees over the five years but J.P. Morgan's trades mistakes still happened.
- Audit companies still encourage partners to sell additional services to audit partners.
- They are paid by the companies they audit.
Economics of Scale in Finance and Independence
Mr. Weil, who caught the headlines last week for calling the break-up of banks, discovered something else in 2001 -that economics of scale in financial firms could have the effect magnifying risks. As you "cross-sell" to customers (for example to the subprime mortgage owner Joe Citi's car insurance), the independence of risk between those two events perish. That is, in simple terms, bad. No wonder that Citi is less than half its book value. It's worth more dead than alive.
Tower Dumps and Privacy
- Foreign Intelligence Surveillance Act (FISA) allows intelligence agencies to eavesdrop on people. And from 1979 to 2011, it rejected only 11 applications and is subject to no other review.
- Between July and December, Google received 4,601 requests for information about its users. Google has complied with 93% of the requests from American authorities.
- The Electronic Communications Privacy Act (ECPA), passed in 1986, still remains the main law governing access to electronic communication.
- Between July and December, Google received 4,601 requests for information about its users. Google has complied with 93% of the requests from American authorities.
- The Electronic Communications Privacy Act (ECPA), passed in 1986, still remains the main law governing access to electronic communication.
Greek Government Spending ALlocation, 2012
According to the Greek Finance Ministry,
43% on wages and pensions
33% on health and welfare
14% on operating expenses
8% on transfers
2% on reserves
Total spending: €47.7bn
Lethargy and Development
According to a paper in the Lancet, insufficient activity has nearly the same effect on life expectancy as smoking. Bad thing that another paper in the Lancet, this one by Pedro Hallal of the Federal University of Pelotas in Brazil, finds that 31% of adults across the world are not getting enough exercise. Malta wins the prize of being the laziest, exercise being defined as 30 minutes of moderate exercise five days a week or 20 minutes of vigorous exercise three days a week.
2012년 7월 29일 일요일
New Laws Four Mr. Putin
With the auspices of the Duma, four vague but hardline laws have passed:
1) a blacklist of "harmful websites
2) re-criminalization of defamation
3) non-profit groups with foreign funding being labelled as "foreign agents"
4) big fines for organizers of illegal protestors.
1) a blacklist of "harmful websites
2) re-criminalization of defamation
3) non-profit groups with foreign funding being labelled as "foreign agents"
4) big fines for organizers of illegal protestors.
Possibilities of Taliban Inclusion
According Anatel Lieven, a professor in the War Studies Department of King's College London, the Taliban may be willing to cut its ties to al-Qaeda for a stake in the politics of Afghanistan after the U.S> troops pull out, perhaps even to "US bases and military advisers after 2014" (FT). The question though, is how big of a stake do they want? And what exactly is the political landscape that the Talibans are imagining? Also, how will Karzai leave?
The Data Dump 07/29/12
- South Korea's second quarter growth the lowest since 2009: 2.4%.
- Barrick Gold, the biggest metal miner, announces projects that have been shelved after $3b is overspent on an South American project.
- TPG puts in a takeover bid for Billabong.
- Romney travels to Israel, London and then Poland.
- Draghi announces "Believe me, it will be enough"
- Small or middle sized banks are pushing to get cocos accepted as first-tier capital.
- Barrick Gold, the biggest metal miner, announces projects that have been shelved after $3b is overspent on an South American project.
- TPG puts in a takeover bid for Billabong.
- Romney travels to Israel, London and then Poland.
- Draghi announces "Believe me, it will be enough"
- Small or middle sized banks are pushing to get cocos accepted as first-tier capital.
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