Assorted Links

1. WSJ Blog points to a paper which says “a 10 percentage point increase in stock purchases from an industry made by a household’s neighbors is associated with an increase of 2% points in the household’s own purchases of stocks from that industry.” So word of mouth works.

2. Marginal Revolution points to another paper which has a political explanation for why capitalism doesn’t flow to poor counries. It says “We find anecdotal evidence suggesting that governments in poor countries have a more left wing rhetoric than those in OECD countries”. Sounds interesting. Let me read and get back.

3. A new Freakonomics type book. Greg Mankiw reccommends it.

4. Financial Rounds looks to be back. Points out to two articles, one why indexing is better and two on hedge fund salaries.

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