New NBER Working Paper: Diagnosing the Italian Disease

A new working paper by Bruno Pellegrino and Luigi Zingales. From the abstract: 

We try to explain why Italy's labor productivity stopped growing in the mid-1990s.  We find no evidence that this slowdown is due to trade dynamics, Italy's inefficient governmental apparatus, or excessively protective labor regulations.  By contrast, the data suggest that Italy's slowdown was more likely caused by the failure of its firms to take full advantage of the ICT revolution.  While many institutional features can account for this failure, a prominent one is the lack of meritocracy in the selection and rewarding of managers.  Familyism and cronyism are the ultimate causes of the Italian disease. 

Read more at NBER Working Papers.  

The Massachusetts economy is roaring

Massachusetts Benchmarks today reports:

Based on the latest available data, MassBenchmarks now estimates that the state economy grew at a 4.9 percent pace, versus 3.1 percent nationally during the second quarter of 2017. In the first quarter the BEA estimates that Massachusetts grew at a 1.1 percent rate as compared to 1.2 percent for the U.S.

Read the entire report here. 

Who's holding the most cash outside of the U.S.?

You will find more statistics at Statista

A one-year look at where the jobs are in Massachusetts

The state's total unemployment rate dropped to 3.9 percent in September from 4.2 percent according to the Executive Office of Labor and Workforce Development. From September 2016 to September 2017, BLS estimates Massachusetts has added 62,300 jobs. 

Job growth was strong in the state's Health Care and Education and Professional Services supersectors. Specifically, the Health Care and Social Assistance subsector added 20,600 jobs since September 2016 with Professional, Scientific and Technical Services adding 8,500. Meanwhile, Construction added 6,200 jobs. 

Chart by East Boston Economics

• Chart: The World's Most And Least Competitive Countries | Statista

• Chart: The World's Most And Least Competitive Countries | Statista