Key Highlights
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A new analytical framework is proposed to guide investment in technologies that remove carbon dioxide from the atmosphere, shifting focus from just reducing emissions to actively cleaning up past pollution. This is crucial for developing realistic and effective climate policy that can meet global temperature targets.
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Signaling theory, which explains how people judge others’ hidden qualities (like trustworthiness or skill), is shown to shape major social outcomes like who gets hired and how groups cooperate or conflict. This framework helps us understand the invisible rules that govern job markets, social trust, and even prejudice between different groups.
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When a Big Four accounting firm’s reputation is damaged by a public company’s financial restatement, its share of private-company clients also drops by about 5%, showing that reputational harm spreads across an auditor’s entire business. This finding challenges the idea that private companies, which face less public scrutiny, are indifferent to their auditor’s quality.
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