Economics

STANFORD GRADUATE SCHOOL OF BUSINESS—All dictatorships are cruel and wasteful. They deprive the populace of basic rights while enriching a small minority at the expense of rational development. Some maintain power through terror and the naked use of force applied by huge standing armies and police...
STANFORD GRADUATE SCHOOL OF BUSINESS—One need look no further than Federal Reserve Chairman Alan Greenspan's use of interest rates to manage the stock market and the economy to realize that expectations play a key role in economic well-being. In recent years, economists have learned a great deal...
STANFORD GRADUATE SCHOOL OF BUSINESS—As more and more people are putting their money into the care of professionals, it's time to ask if the people investing your money are properly motivated—that is, if they are given incentives to make the right decisions when they construct portfolios composed...
STANFORD GRADUATE SCHOOL OF BUSINESS—In June finance ministers of the Group of 8, the world's wealthiest industrialized nations, agreed to cancel at least $40 billion in debt owed by the world's poorest nations, many of them in Africa. The move certainly sounds generous, but researchers caution it...
STANFORD GRADUATE SCHOOL OF BUSINESS—Stock options have become commonplace additions to compensation packages in recent years. Yet, the experts say stock options are lousy incentive mechanisms for motivating rank-and-file employees at the largest companies to work hard. Consider, for example, an...
STANFORD GRADUATE SCHOOL OF BUSINESS—For anyone who bills or earns by the hour, the world can turn into a 24-hour clock divided not by numbers, but dollar signs. In a recent study, lawyers watching their kids play soccer admitted to mentally ticking away lost income for each minute they stood on...
STANFORD GRADUATE SCHOOL OF BUSINESS—The March 31, 2004, Financial Accountings Standards Board (FASB)proposal for expensing stock options is reigniting an already heated battle. Companies like AIG, Citigroup, Coca-Cola, General Electric, Randal are already expensing or planning to expense employee...
STANFORD GRADUATE SCHOOL OF BUSINESS—Bribery, extortion, graft, embezzlement––these are just some of the grizzly faces of corruption. In some countries, corruption is so common that it is as expected as a handshake when ordinary people or businesses deal with government officials. In a recent...
STANFORD GRADUATE SCHOOL OF BUSINESS—A plan by global financial regulators to fix the mess created by the misuse of credit default swaps is flawed, says Darrell Duffie, professor of finance at the Stanford Graduate School of Business. In a preliminary research paper, Duffie, and GSB doctoral...
STANFORD GRADUATE SCHOOL OF BUSINESS—Eight years ago, 55 U.S. states and territories signed a landmark settlement with the nation's four major tobacco companies. The Master Settlement Agreement forced the big tobacco companies to pay fees to the state on futures sales of cigarettes in return for...

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