Cowboy Economics News - January 2009 Archives

Researchers find lack of trust in leaders, institutions is major factor in US economic crisis (1/28/2009)

As unemployment rates rise and the housing crisis deepens, America's trust of its financial leaders and institutions has plummeted. To study the financial implications of eroding trust, Paola Sapienza (Kellogg School of Management at Northwestern University) and Luigi Zingales (University of Chicago Booth School of Business) have created the Chicago Booth/Kellogg School Financial Trust Index. The research shows America's declining trust and how strongly it contributes to the country's financial problems. ...> Full Article

Political variables do not improve the performance of trading rules (1/22/2009)

A new study provides empirical evidence on the Democratic premium and the presidential cycle effect ...> Full Article

When local revenue falls, traffic citations go up (1/13/2009)

A new study to be published in next month's Journal of Law and Economics finds statistical evidence that local governments use traffic citations to make up for revenue shortfalls. So as the economy tanks, motorists may be more likely to see red and blue in the rearview. ...> Full Article

Logical reversal (1/11/2009)

Reverse logistics helps environment, gives competitive advantage ...> Full Article

You can look - but don't touch (1/9/2009)

Consumers are often told that if they break an item, they buy it. But a new study suggests that if they just touch an item for more than a few seconds, they may also end up buying it. Researchers from Ohio State University and Illinois State University tested how touching an item before buying affects how much they are willing to pay for an item. ...> Full Article

Risk management critical to corporate strategy (1/9/2009)

With the consequences of the current financial crisis spreading to the real economy, lawmakers are exploring new regulations to govern the financial markets. ...> Full Article

China's food economy benefits small, poor farmers (1/8/2009)

One of the most significant changes in China's agricultural economy over the past 15 years has been the rise of horticulture. ...> Full Article

Doubts make consumers more willing to reevaluate brands, study finds (1/7/2009)

Most consumers crave a clear understanding of brand images, making them more receptive to new marketing messages if anything clouds their vision of companies or products, according to a new study by a University of Illinois marketing expert. ...> Full Article

Flawed deposit insurance programs need reform, banking expert says (1/6/2009)

Government insurance programs that safeguard bank deposits should be reformed to ease taxpayers' undue stake in propping up the nation's banking system, according to research by a University of Illinois finance professor. ...> Full Article

Nuanced case for outsourcing by automakers, according to new Management Insights (1/5/2009)

Automakers who favor the flexibility and price savings of outsourcing production must weigh carefully the product life cycle implications of sacrificing in-house manufacturing, according to the Management Insights feature in the current issue of Management Science, the flagship journal of the Institute for Operations Research and the Management Sciences. ...> Full Article