Warmer countries tend to be poorer countries. Economists have been studying that relationship going back to 1750, checking whether it’s the weather or some other reason. Perhaps warm countries simply share similar trade policies, for example.
But new research shows that the relationship holds even within the borders of a single country. That is, warmer cities tend to have lower income than cooler ones. That may give more heft to the notion that temperature does play an important role in income.
The researchers from MIT and the National Bureau of Economic Research looked at data from 12 countries across the Americas.
Partial thaw.
Cracks are forming in the credit markets, at least for the most-trusted companies. Businesses with very high credit ratings are issuing more bonds, and investors aren’t demanding as high a yield for them, according to Standard & Poor’s.
Investment-grade companies issued $101.88 billion in bonds in January, nearly five times October’s volume. The thaw, though, hasn’t been as strong among low-quality, or “junk” bonds.
Which way is up?
When is a loss actually a gain? When you’re delving into the tricky world of international stock investing.
The MSCI Korea index, for example, is down 1.6 percent in 2009 through Wednesday, when calculated in U.S. dollar terms. But in its local currency, the won, the index is actually up 7.7 percent over the same span. Investors hoping to get exposure to international stocks can avoid such swings by going with mutual funds that hedge against currency changes.
Still stingy.
Gasoline prices are at 2005 levels, but that doesn’t mean Americans are returning to their gas-guzzling ways.
Americans, on average, say they want their next car to get about 29 miles per gallon, up from their current 24, according to a survey by the Consumer Federation of America. The survey canvassed 1,000 Americans, 76 percent of whom said they’re still worried about gas prices.
The Associated Press
