Thinks 464

Tim Hartford: “Researchers and policy wonks have long studied pilot schemes such as criminal rehabilitation programmes, public health initiatives or innovative schools. They dread the familiar phenomenon of the pilot delivering sensational results, only to fade at a larger scale. This dismaying tendency was called “voltage drop” by the psychiatrist Amy Kilbourne and her colleagues in 2007. The economist John List has been exploring the causes of this voltage drop, first in a 2019 paper with Omar Al-Ubaydli and Dana Suskind, then in a recent book, The Voltage Effect.”

Bloomberg: “S&P Dow Jones Indices, MSCI and FTSE Russell. Their nondescript names mask their enormous influence. Between them, they design, calculate and manage hundreds of thousands of financial indices that steer capital around the world. In total, over $50 trillion of investor funds are benchmarked against metrics that these three entities control. Like the hedge funds before them, it’s not just companies that fall under their gaze but countries too. By setting the criteria for index membership, they act as gatekeepers, determining which countries are eligible for investment by many of those funds.”

Sherlock Holmes: “Never trust to general impressions, my boy, but concentrate yourself upon details.”

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.