Monday, October 11, 2010
Two interesting articles
Two interesting pieces in the business section of the NY Times yesterday. Mankiw's column illustrates the effects that higher taxes on high-income earners can have on work effort. He uses himself as a case study. An article on the historical gains of the stock market after the midterm elections provides astonishing data. The article writes about the data from the perspective of it being the third year of a presidential term, but data I received from a former student showed that the 200 days after the midterm election consistently had high returns while the 200 days prior to the midterm elections returns were much lower, with many years showing negative returns. It is difficult to know what to make about the data.