Key Highlights
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A study tracking high-potential startups found that 6.6% move across state lines in their first five years, with traditional hubs like Silicon Valley and Boston tending to lose companies to other cities. This reveals a dynamic where young startups seek established ecosystems, but more mature ones prioritize lower taxes, challenging simple assumptions about what makes a city attractive for business growth.
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In portfolio management, a simple Exponentially Weighted Moving Average (EWMA) model for predicting stock volatility holds its own against more complex, data-intensive models for daily and weekly forecasts. This finding is crucial for investors because it means a straightforward, easy-to-use tool can be just as effective for short-term decisions, saving time and resources while managing risk.
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Research using a quantitative trade model shows that when countries face new US tariffs, responding by seeking deeper trade agreements with other partners leads to higher real income for themselves and the world, compared to retaliating with their own tariffs or using subsidies. This provides a clear policy roadmap, suggesting that building new trade alliances is a more beneficial long-term strategy than engaging in a tit-for-tat trade war.
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A large study across 39 African countries found that an individual’s poverty status is directly linked to receiving lower-quality care at government hospitals, affecting everything from wait times to the respect shown by staff. This highlights a critical equity issue, showing that improving healthcare delivery systems is just as important as lifting people out of poverty for achieving better health and economic outcomes.
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New research on the “Great Divergence” debate provides detailed estimates of GDP per person across different regions of China from 1080 to 1850. This long-term historical data is vital for understanding when and why some parts of the world became much richer than others, offering a deeper context for current global economic inequalities.
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