*General Social Survey Also Shows That Happiness Takes A Hit Because of Personal Finances*
Chicago — A recently released report of the General Social Survey, conducted by NORC at the University of Chicago, shows that for the first time since 1972, more Americans say that their financial situation has gotten worse in recent years rather than better. Understandably, also for the first time since 1972, the percentage of Americans saying that they are “not at all” satisfied with their financial situation (31.5%) notably exceeds those saying they are “pretty well” satisfied (23.4%). (more…)
ANN ARBOR, Mich.—Stock analysts’ earnings forecasts for companies with hard-to-read annual financial reports are more informative, but less accurate, say University of Michigan researchers.
A new journal article in the May issue of Accounting Review shows that sell-side financial analysts expend greater effort to generate earnings forecasts of publicly traded firms with less readable 10-K filings. This increased effort by analysts results in earnings reports to investors that contain more information—but less accuracy and greater uncertainty. (more…)
“Japan will recover from the catastrophe that has hit its shores,” says Bernard Bernier, director of the Université de Montréal Department of Anthropology. “This will not be a turning point in the country’s history.”(more…)
ANN ARBOR, Mich.—Americans who are more conscientious have higher lifetime earnings and save more for retirement, according to researchers at the University of Michigan Retirement Research Center.(more…)
In discussions of how best to solve global poverty, helping the 3 billion people living on less than $2.50 per day, development economists tend to fall into one of two camps.
One camp claims that wealthy nations contribute too few dollars to combat poverty. The other camp counters that money doesn’t guarantee poverty alleviation, and points to the $2.3 trillion spent in foreign aid over the past 50 years as evidence that throwing money at the problem won’t solve it. Despite their differences, both groups agree that some types of development interventions work better than others. (more…)
It’s not just how free the market is. Some economists are looking at another factor that determines how much a country’s economy flourishes: how smart its people are. For a study published in an upcoming issue of Psychological Science, a journal of the Association for Psychological Science, researchers analyzed test scores from 90 countries and found that the intelligence of the people, particularly the smartest 5 percent, made a big contribution to the strength of their economies.
In the last 50 years or so, economists have started taking an interest in the value of human capital. That means all of the qualities of the people who make up the workforce. Heiner Rindermann, of the Chemnitz University of Technology, wanted to look more closely at human capital, and particularly the factor that psychologists call cognitive ability. “In other words, it’s the ability of a person to solve a problem in the most efficient way—not with violence, but by thinking,” Rindermann says. He wrote the new study with James Thompson of University College London. (more…)
In its first quarterly report of 2011, the UCLA Anderson Forecast is cautiously sanguine about the national economy, as real gross domestic product continues to grow at a steady pace and employment continues to increase.(more…)
The United States prizes freedom above most other civic values, yet Bernard Harcourt believes the notion is widely misunderstood and inconsistently applied.
Freedom from government interference is a key tenet of the free market system that the United States champions, but Harcourt notes that Americans expect vigorous government action in imprisoning criminals. The result is a deep inconsistency, he argues, for even as the United States preaches freedom in the marketplace, it maintains the world’s highest incarceration rate. (more…)
