24 December 2014
Active mutual funds perform better after trading more, according to research by Lubos Pastor
, Robert F. Stambaugh
, and Lucian A. Taylor
. This relationship between a fund's turnover and its subsequent benchmark-adjusted return is especially strong for small, high-fee funds. These results are consistent with high-fee funds having greater skill identifying time-varying profit opportunities and with small funds being more able to exploit such opportunities.
23 December 2014
High-paying firms grow more quickly in booms and shrink more quickly in busts, while employment growth at low-paying firms is less cyclically sensitive, according to data analysis by Lisa B. Kahn
and Erika McEntarfer
. Workers at the lowest paying firms are 20 percent less likely to move to a higher-quality firm during an economic downturn than during an upswing.
22 December 2014
Studying the effect of local media on political accountability in Mexico, Horacio A. Larreguy
, John Marshall
, and James M. Snyder, Jr.
determine that voters punish the party of malfeasant mayors only in electoral precincts covered by local stations. An additional local outlet reporting corruption reduces the incumbent party’s vote by 1 percentage point; diverting funds from projects to benefit the poor reduces the vote by around two percentage points.
19 December 2014
Unemployment rates did not change substantially in Germany, increased and remained relatively high in the United States, and increased moderately in Canada during and after the Great Recession of 2008-09. Florian Hoffmann
and Thomas Lemieux
offer two explanations for the weaker performance of the U.S. labor market: large employment swings in U.S. housing construction and a much greater drop in U.S. GDP compared with Germany.
18 December 2014
In both recessionary and non-recessionary periods, the probability of job loss is higher for private sector workers than for public employees, Jason L. Kopelman
and Harvey S. Rosen
find. The probability of displacement for private sector workers increased during both the Great Recession and earlier recessions studied, while in the public sector job loss rates sometimes increased and sometimes decreased, and varied among federal, state, and local governments.