Tuesday, September 13, 2005
previous entry | main | next entry | TrackBack (0)
Is Enron responsible for weak job growth?
Tyler Cowen links to this informative Daniel Gross article in the New York Times about possible explanations for the relatively weak job growth the economy has experienced over the past few years:
Gross then summarizes an NBER working paper by Philippon and his colleague Simi Kedia. Their abstract:
I agree with Tyler: "It is too early to evaluate this research, and let us not get carried away by monocausal theories, but today I felt I learned something."posted by Dan on 09.13.05 at 11:32 AM
I liked the beginning of Gross' penultimate paragraph: "The conclusions are speculative."
Overinvestment, including overhiring, is what one would expect in the midst of an bubble economy, isn't it? And Enron's corner of the economy had more air in the bubble than most others.posted by: Zathras on 09.13.05 at 11:32 AM [permalink]
> We study the consequences of earnings management
Seems pretty obvious when one considers AT&T. For all their missteps and overpayments on acquisitions, they had by far the best strategy and customer base of any of the business telecomm/datacomm providers out there in the 1995-2000 time frame. But they destroyed themselves trying to match Worldcom's finanical results. We now know that those finanical results could never have been matched, because they were fraudlent. But that won't bring AT&T back to life: it has been taken apart piecmeal and the remains now sold to SBC. Enormous inefficiency from the societal viewpoint.
Crankyposted by: Cranky Observer on 09.13.05 at 11:32 AM [permalink]
Post a Comment: