This month two academic researchers showed that there were errors in the calculations behind the claim by economists Carmen Reinhart and Kenneth Rogoff that the relationship between government debt and real GDP growth is weak for debt/GDP ratios below a threshold of 90 percent of GDP. Above 90 percent, median growth rates fall by one [...]
There are many books that tell you what to measure to succeed in a business strategy or to improve business performance. Ideas on what to measure may indeed be very useful. But these ideas won’t help you, and may even be harmful, if you do not know whether what you are measuring is misleading you. [...]
“The mental health effects of any given disaster are related to the intensity of the exposure of the event. Sustaining personal injury and experiencing the injury or death of a loved one in the disaster are particularly potent predictors of psychological impairment.” The research paper from which the above quote was taken was published shortly [...]
Brian Milner, a journalist at the Globe and Mail’s Report on Business, picked up on our blog post on core earnings and cited it in this article this morning.
A couple of weeks ago Manulife Financial, a large Canadian insurance company, introduced a new metric called “core earnings.” They reported a net loss of $227 million in the third quarter, but $556 million in core earnings. The problem with core earnings as an indicator is that it attempts to determine the revenue from the [...]
After every big storm there are always attempts to rank it to see how it compares to other biggies. That certainly happened with this week’s “Frankenstorm” Sandy (for example here and here). There are so many ways to rank storms that there will likely be some way every major storm will earn an impressive rank. [...]