Category Archives: Economics

How often do medical problems lead to bankruptcy?

Poor health is a less common cause of bankruptcy than commonly thought, but it brings other economic woes. CAMBRDIGE, MASS.–A team of researchers led by an MIT economist has found…

Innovation as the key to hotels’ survival

Study advises small and medium hotels in Mauritius to embrace new technologies and cultivate new clienteles. Small and medium sized hotels in Mauritius must adopt innovative business models in order…

How impatience guides financial behavior

Long-term states of mind can affect short-term financial decisions. CAMBRIDGE, Mass. — Imagine you are receiving a refund payment from the federal government. Are you going to spend it right away…

A new study co-authored by an MIT economist reveals that people have a haphazard approach to assessing inflation. Image: Christine Daniloff/MIT

Intermittent attention, poor memory shape public perceptions of inflation

Consumers may tune in to prices when they need to — but recall data poorly, study finds. CAMBRIDGE, Mass. — Do you know your country’s current inflation rate? What do you…

Hospitals that spend more on emergency care yield better outcomes

Investing more in inpatient care relative to longer-term nursing facilities reduces mortality rates. CAMBRIDGE, Mass. — Hospitals that spend more on initial care following patient emergencies have better outcomes than hospitals…

Government transparency limited when it comes to America’s conserved private lands

American taxpayers spend millions of dollars each year to conserve privately owned lands. These lands provide public benefits like timber, water quality protection and food. Yet, information about conserved private…

Darwin visits Wall Street

Andrew Lo’s new book urges a rethink of financial markets, along evolutionary lines. CAMBRIDGE, Mass. — If you have money in the stock market, then you are probably anticipating a profit…

Not stuck on silicon

Engineers use graphene as a “copy machine” to produce cheaper semiconductor wafers.  CAMBRIDGE, Mass. — In 2016, annual global semiconductor sales reached their highest-ever point, at $339 billion worldwide. In that…

The corporate debt trap

Study: Firms that owed more also laid off more workers during the 2007-2009 recession. CAMBRIDGE, Mass. — The debt levels of large companies just before the Great Recession of 2007-2009 are…

Income inequality linked to export “complexity”

The mix of products that countries export is a good predictor of income distribution, study finds. CAMBRIDGE, Mass. — In a series of papers over the past 10 years, MIT Professor…