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In bank stress tests, what’s worse: runs or lemons (the other kind)? Lemons via www.shutterstock.com

Runs versus lemons: why US bank stress tests succeeded while Europe’s failed

US regulators chose to reveal detailed information to the public about the state of the banks. They were able to be so transparent, without triggering a run, because of a strong fiscal backstop.
While the higher gas mileage may lead people to drive a green car more often, its other attributes may be less appealing. Green car via www.shutterstock.com

Do greener cars lead consumers to hit the road more often?

Some worry that efforts to reduce energy consumption by increasing fuel efficiency cause a so-called rebound effect that eats into the expected savings. We tested the theory.

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