Brands want us to trust them. But as the SPF debacle shows, they need to earn it
It’s quite unsettling to discover something so central to our cultural rituals – the “slop” in the Aussie mantra of “Slip! Slop! Slap!” – can no longer be trusted.
IFDP Paper: Transformative and Subsistence Entrepreneurs: Origins and Impacts on Economic Growth
Ufuk Akcigit, Harun Alp, Jeremy Pearce, and Marta PratoThis paper explores the symbiotic relationship between transformative entrepreneurs and inventors, which is crucial for economic growth. We utilize microdata from Denmark to demonstrate that while the relationship between IQ and general entrepreneurship tends to be negative, it is strongly positive among transformative entrepreneurs.
The Inflation Reduction Act’s Impact on Pharmaceutical Innovation: What Real Evidence Shows
Has the Inflation Reduction Act hindered pharmaceutical innovation? Evidence shows that the pharma industry can strategically manage disruptive change.
“How can you make sense of the future when you only have data about the past?”
--Clayton Christensen
Detroit restaurants identified as ‘Black-owned’ on Yelp saw a slight drop in business ratings
Yelp's Black-owned tag was designed to help business owners like Don Studvent attract more customers. His restaurant closed in 2018 after nine years in business.
The Bank of England's supervision of financial market infrastructures - Annual Report 2025
The FMI Annual Report sets out how the Bank has exercised its responsibilities in respect of supervising financial market infrastructures since the last report.
Enhancing GDP nowcasts with ChatGPT: a novel application of PMI news releases
This study involves tasking ChatGPT with classifying an “activity sentiment score” based on PMI news releases. It explores the predictive power of this score for euro area GDP nowcasting. We find that the PMI text scores enhance GDP nowcasts beyond what is embedded in ECB/Eurosystem Staff projections and Eurostat’s first GDP estimate. The ChatGPT-derived activity score retains its significance in regressions that also include the composite output PMI diffusion index.
How Bordeaux wine estates price their bottles
On wine-rating platforms, amateur ratings better explain the price differences of bottles than professional scores. JuanGarciaHinojosa/ShutterstockResearch in economics has unravelled the workings of the complex market for Bordeaux wines, in which perceived quality, historical reputation and critical reviews are intertwined.
FEDS Paper: Shovel Ready Projects and Commercial Construction Activity's Long and Variable Lags(Revised)
David Glancy, Robert J. Kurtzman, and Lara LoewensteinWe use microdata on the phases of commercial construction projects to document three facts regarding the sector's time-to-plan lags: (1) plan times are long and highly variable, (2) nearly half of projects in planning are abandoned, and (3) property price appreciation reduces the likelihood of abandonment.
FEDS Paper: Macroprudential Regulation and Lending Standards(Revised)
R. Matthew Darst, Ehraz Refayet, and Alexandros VardoulakisWe examine how macroprudential capital requirements interact with competition between banks and non-banks to shape lending standards. Banks have private information and benefit from deposit insurance, while non-banks lack such advantages but are less regulated.
FEDS Paper: Total Recall? Evaluating the Macroeconomic Knowledge of Large Language Models
Leland D. Crane, Akhil Karra, and Paul E. SotoWe evaluate the ability of large language models (LLMs) to estimate historical macroeconomic variables and data release dates. We find that LLMs have precise knowledge of some recent statistics, but performance degrades as we go farther back in history.
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