SEMI-MONTHLY INTERNATIONAL AND NATIONAL TOP NEWS COVERAGE FOR OCTOBER 1-17, 2014

U.S. MEDIA

Fellow Economists Express Skepticism About Thomas Piketty

New York Times - Oct 14, 2014 - There’s no doubt that Thomas Piketty has reinvigorated the public debate about the causes of income inequality. But has he convinced his fellow economists? They're intrigued, but not convinced. At least that’s my reading of the latest survey run by the University of Chicago’s Initiative on Global Markets.

Business Education: In Chicago, a Flexible Curriculum

The Wall Street Journal - Oct 01, 2014 - Dean Kumar says Booth School is about more than just finance.

The Very Costly Mistake Almost All Shoppers Make

TIME Magazine - Oct 16, 2014 - Matthew Gentzkow, a professor of economics at the University of Chicago Booth School of Business and one of the authors of the study, says research shows that people who are experts in areas like food or medicine tend to buy more generics in those categories.

How Sports Can Help Your Kids Outsmart Everyone Else

TIME Magazine - Oct 15, 2014 - "The playing field provides the ideal context for learning fractions, probability, equations, risk assessment, principles of finance, behavioral economics and even multi-variable calculus," writes Toby Moskowitz and his co-author.

Disconnect between Obama and economy

NBC News (VIDEO) - Oct 03, 2014 - Austan Goolsbee, Chicago's Booth Business School; Kevin Hassett, American Enterprise Institute; and Larry Kudlow, CNBC senior contributor, share their thoughts on the apparent divide between President Obama's popularity and the U.S. economic recovery.

Goolsbee: U.S. Must Focus on Improving Worker Skills 

Bloomberg TV (VIDEO) - Oct 03, 2014 - Austan Goolsbee talks about the September U.S. jobs report released today and the outlook for the global economy. Coverage of the story can also be found on CNBC, Fox Business and Yahoo Finance.

Unemployment Not Showing Full Worker Stress: Kroszner

Bloomberg TV (VIDEO) - Oct 02, 2014 - Randy Kroszner discusses unemployment and the U.S. and European economies on “Bottom Line.”

The Case for Marrying a Man Without a Steady Job

Bloomberg Businessweek - Oct 14, 2014 - What modern women may not realize is that a husband with more marginal employment can increase his wife’s own earnings. That’s one way to read a study by Marianne Bertrand and her colleagues tracking the careers of 629 University of Chicago MBAs over 16 years.

What's Wrong With Ignoring Inequality

Bloomberg View - Oct 01, 2014 - John Cochrane’s speech at a recent Hoover Institute conference on inequality...unleashes any and every counterargument against the idea that the U.S.’s widening income and wealth gaps require redistribution.

UofC's Booth School again tops ranking of best MBA programs

Chicago Tribune - Oct 09, 2014 - The University of Chicago’s Booth School of Business has again topped the Economist’s list of best full-time MBA programs.

CEO boot camp for women: How to simplify your 1st pitch to investors

Chicago Tribune - Oct 01, 2014 - “Everything you know about your business does not equal your presentation,” said Waverly Deutsch, clinical professor of entrepreneurship. Deutsch made her comments during a workshop on pitching to investors, part of American Express OPEN for Women: CEO BootCamp.

Maybe the Internet Isn’t Killing Newspapers After All

Chicago Magazine - Oct 01, 2014 - In a 2013 paper about the economics of print journalism versus online journalism, Matthew Gentzkow points out that newspapers have been in decline for way longer than the internet has been a popular source of information.

How To Quit Facebook Without Experiencing Withdrawal

Huffington Post - Oct 17, 2014 - If you're addicted to Facebook and trying to quit, here's a little trick: Think about how much you love Instagram. The recent Facebook experiment was just one of several included in a larger study by Ayelet Fishbach, which was designed to examine how people's behavior changes when they are deprived of some of their favorite products.


MEDIA OUTSIDE THE U.S.

FT MBA Challenge winner announced

Financial Times - Oct 16, 2014 - In second and third place in the challenge came Team Chipo and The Fuqua Scholars respectively. The Fuqua Scholars represented students studying at the University of Chicago Booth School of Business, Fuqua and University College London, who created a business plan that showed how WCC can implement microfinance solutions in Ghana.

Manchester Business School receives £15m naming gift

Financial Times - Oct 16, 2014 - However, these sums are all dwarfed by donations to US business schools. Real estate developer Stephen Ross has given a total of $200m to the business school at the University of Michigan, which now bears his name. And at the University of Chicago MBA alumnus David Booth gave $300m to his alma mater in 2008.

French academic who helped reshape regulation wins Nobel economics prize

Financial Times - Oct 14, 2014 - For the Nobel academy, it marks a return to the less contentious realm of pure economic theory after last year's award went to Robert Shiller, Eugene Fama and Lars Peter Hansen...

Bernanke’s failed mortgage application exposes the flaw in banking

Financial Times - Oct 13, 2014 - "We must stop providing bailouts based on unrealistic models," writes Amir Sufi.

Extracts from the 2014 shortlist: Business Book of the Year Award

Financial Times - Oct 08, 2014 - Excerpts from "House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It From Happening Again," by Atif Mian and Amir Sufi.

Anti-Semitism: Another cost of bigotry

The Economist - Oct 17, 2014 - The assertion that Jews “control” finance is commonplace among anti-Semites. A new academic study by Michael Weber finds that people who live in areas of Germany where persecution of Jews was most intense are less likely to invest in the stock market, even today.

The world's best business programmes: Which MBA?, 2014

The Economist - Oct 09, 2014 - The Chicago boys, and girls, rise to the top again in our business-school ranking: Chicago Booth is #1.

Banks? No, thanks!

The Economist - Oct 09, 2014 - For graduates of the world’s leading business schools, investment banking is out and consulting and technology firms are in. At the University of Chicago’s Booth School of Business, the percentage of students going for jobs in investment banking has fallen from 30% in 2007 to 16% this year.

To those that have shall be given; The privileged few

The Economist - Oct 04, 2014 - A recent study by Loukas Karabarbounis and Brent Neiman puts the global decline in labour’s share of income since the early 1980s at roughly five percentage points, to just over half of national income.
 
Home economics; Housing

The Economist - Oct 04, 2014
- A new paper by Chang-Tai Hsieh estimates that between 1964 and 2009 output in America was 13% lower than it might have been because high housing costs encouraged people to move away.

Meeting deadlines

The Economist - Oct 03, 2014 - If you want something done, the saying goes, give it to a busy person. It is an odd guarantor of hitting deadlines. Yanping Tu and his colleague examined how individuals go about both thinking about and completing tasks.

2015 Best American business schools for career prospects: Stanford topped

Forbes China - Oct 15, 2014 - In the recently published Princeton Review's "296 Best Business Schools" 2015 edition, 21,600 student questionnaires ranked the Stanford Business School as the nation's top business school for career prospects rating. Chicago Booth was listed at #7.

Why people risk more money for uncertain rewards

Yahoo India News - Oct 15, 2014 - Ayelet Fishbach, Christopher K. Hsee and their colleague compared the time, money and effort that people put into winning a certain reward versus an uncertain reward, and found that the uncertain reward was more motivating. Article also in Business Standard, India4u.com, Medical Daily.

With price transparency, hospitals charge less

Caijing - Oct 14, 2014 - Associate Professor Hans B. Christensen, Assistant Professor Mark G. Maffett, and PhD student Eric Floyd examine the effects of price transparency on costs associated with hip-replacement surgery. Reprinted from Capital Ideas.

Bank runs aren't madness: This model explained why

Caijing - Oct 09, 2014 - The first in a series of papers laying out Douglas Diamond's research agenda, “Bank Runs, Deposit Insurance, and Liquidity,” written with Philip H. Dybvig, appeared in the Journal of Political Economy in 1983. Reprint of Capital Ideas article.

A secret of Uber’s success: struggling workers

Livemint - Oct 03, 2014
- Steven Davis says that job fluidity (econo-speak for workers’ ability to move from job to job) is stagnant. All of this depresses wages and locks many younger and less-educated workers out of full-time positions.


RESEARCH

News Flash: Flash Mobs are Good for Your Health

U.S. News & World Report - Oct 15, 2014 - Indeed, connecting with others – even momentarily – is linked to positive mental health effects. Nick Epley's study, where people were instructed to talk to strangers during their morning commute, is mentioned. Article also in Yahoo.

Put the Market Back in Real Estate

U.S. News & World Report - Oct 14, 2014 - Getting the incentives right is important, and perhaps especially so for those who are living with our policies’ unintended consequences. For example, according to University of Chicago economics professor Erik Hurst's research, the policy bust in housing correlates with an over 50 percent decrease in labor force participation among men without college degrees.

How mortgage rates affect car purchases, credit card debt and jobs

Washington Post--Wonkblog - Oct 09, 2014 -The Federal Reserve policy pushed mortgage rates lower, helped stimulate consumer spending and revved up the economy, just as the Fed had hoped according to a working paper by Amit Seru and his colleagues. Amir Sufi's "House of Debt" is also cited.

Why Retailers Will Love the Apple Pay Era

Bloomberg Businessweek - Oct 17, 2014
- Apple’s mobile payment service will let iPhone users buy things by simply pulling out their device. Buying things without cash is simply more fun. Richard Thaler's study proved such transactions are more pleasurable experiences.

Why A Gold Standard Does Not Imply Price Stability

Forbes - Oct 09, 2014 - In a 2012 IGM study, not one of the 40 of the economists surveyed agreed that “If the US replaced its discretionary monetary policy regime with a gold standard, defining a ‘dollar’ as a specific number of ounces of gold, the price-stability and employment outcomes would be better for the average American.”

Caveat Emptor: Don't Buy The Ads For Precious Metals

Forbes - Oct 09, 2014 - Eugene Fama’s efficient markets theory tells us that if silver and gold were such great investments, the price would already have been bid up to the point that few profits were left for new investors.

Hiding your race or gender on a job application: Is it ever worth it?

Fortune - Oct 07, 2014 - Such changes often lead job candidates down a slippery path and often yield more problems than solutions. Marianne Bertrand's research study, "Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination" is cited.

The Berlin Wall’s great human experiment

Boston Globe - Oct 12, 2014 - Before the Berlin Wall fell, the wall did something that most people never think of: it created a massive laboratory for studying human society. A paper by Tarek Hassan which looked at how businesses grew and spread after the fall is mentioned.


FACULTY/STAFF/STUDENTS/SCHOOL

Uber Improves Life, Economists Agree

New York Times - Sept 30, 2014 - The only real note of caution came from Richard Thaler, one of the founding fathers of behavioral economics, who added that “Uber needs to be careful about surge pricing in emergencies,” because “people care about fairness as much as efficiency.”

Grand Central: Does Bernanke Deserve a Nobel Prize?

Wall Street Journal (blog) - Oct 01, 2014 - Ben Bernanke's work, along with work by others like Douglas Diamond at Chicago Booth, is seen by many academics as being at the leading edge of research on how the links between the financial system and the economy break down in a crisis.

Uber the unfair? Are ride-sharing firms exploiting deregulation?

PBS News Hour - Oct 02, 2014 - According to a poll of 40 economists released this week from the IGM Forum at Chicago Booth, all thought that more cab competition would boost consumer welfare.

Democrats’ new villain: Student debt

MSNBC - Oct 01, 2014 - There’s considerable research showing that people who are already in debt tend to feel more comfortable taking on even more debt, according to Abigail Sussman.

CNBC Marks 25th Year by Bringing the Asia Business Leaders Awards Back to Singapore

CNBC - Oct 10, 2014 - The University of Chicago Booth School of Business and Development Dimensions International (DDI) are knowledge and research partners for ABLA.

CNBC Announces the Nominees for the 2014 Travel Business Leader Award

CNBC - Oct 07, 2014
- The University of Chicago Booth School of Business and Millward Brown are the Knowledge and Research Partners for TBLA.

Decision 2014: A Campaign About Nothing?

NBC News - Oct 07, 2014 - “The most important economic issues facing the country concern big, long-term challenges and the 2014 election season seems if anything obsessed with the complete opposite,” said Austan Goolsbee.

Obama touts economic gains under his watch

NBC4.com - Oct 02, 2014 - While corporate bottom lines are improving, companies aren't filling jobs as fast they were before the recession. An index compiled by Steven Davis found companies took an average of nearly 25 days to fill a job in July 2014, up from fewer than 22 in 2006.

14 Strategies to Become a Happier Person

ABC News - Oct 06, 2014 - In one 2014 study by Nicholas Epley, PhD, professor of behavioral science at Chicago Booth and author of "Mindwise: How We Understand What Others Think, Believe, Feel and Want," participants heading to work by train either refrained from engaging with fellow passengers or made conversation.

The Incredible Shrinking Mutual Fund Manager

TIME - Oct 09, 2014 - Lubos Pastor's study of more than 3,000 actively managed stock funds from 1979 to 2011 found that managers on average generated risk-adjusted returns that were actually better than their benchmarks.

Market guru: Buy-and-hold won't save you

USA Today America's Markets - Oct 15, 2014 - According to Eugene Fama, investors are best off owning a diversified basket of stocks tilted toward value-priced stocks and shares of smaller companies and holding on.

College Choice Publishes 2015 Ranking of Top 50 MBA Programs

Bloomberg Businessweek - Oct 15, 2014 - College Choice, an independent college search and rankings website, has published a ranking of the top fifty MBA programs in the United States. Chicago Booth is listed at #6.

No, UCLA, Gender Equality in B-School Faculty Isn't 'Mathematically Impossible'

Bloomberg Businessweek - Oct 14, 2014 - Female business school faculty are not only paid less at every level, but are leaving the field at higher rates than male counterparts and are less likely to advance. This pattern is evident in all business disciplines, but is especially pronounced in finance. Chicago Booth, which is very strong in finance and economics, has only 16 percent female faculty, less than Anderson’s 19 percent.

Rutgers Business School Accidentally Hits an Elusive Diversity Benchmark

Bloomberg Businessweek - Oct 10, 2014 - The school’s new class of full-time MBAs is 51 percent female. By comparison, the average share of women MBAs across North American business schools is 37 percent, according to the main accrediting body for U.S. business schools. “The women who are very qualified are scarce, so everyone is competing for them,” says Stacey Kole.

You're Not a Piñata. Find a Financial Adviser Who Knows It

Bloomberg - Oct 08, 2014
- The economics of financial advice encourage advisers to pander to clients, warns University of Chicago business professor Robert Vishny. If a client has a “crazy notion,” like loading up on young tech stocks, an adviser might go along with it, Vishny says.

Roti Prata, Tax Breaks Lure Skilled Southeast Asians Home

Bloomberg Businessweek - Oct 08, 2014
- Southeast Asian countries are following other nations in trying to bring back citizens: Taiwan, South Korea and India have all tapped their expats in U.S. academia and industry, especially technology. Raghuram Rajan taught at the University of Chicago before returning to run India’s central bank.

The Effort to Get Gay Professionals Out of the Closet, and Keep Them Out

Bloomberg Businessweek - Oct 03, 2014 - Chicago Booth--along with five other business schools--has agreed to fund one of the scholarships (offering at least $10,000 per year toward tuition for one LGBT student), which will be called Reaching Out MBA fellowships.

El-Erian, Bogle, Malkiel Among 30 Luminaries Discussing Hot-Button Issues in Finance

Bloomberg Businessweek - Oct 01, 2014 - What do the top luminaries in finance really think about smart beta, momentum investing, performance inflation and the ability to predict stock market crashes? Thirty well-recognized luminaries have written their frank assessment of these burning issues. Toby Moskowitz is one of the authors.

Former presidential advisor at BenU to discuss future of U.S. economy

Chicago Tribune - Oct 09, 2014
- The Center for Civic Leadership (CCL) at Benedictine University will host former presidential economic advisor Austan Goolsbee, Ph.D., who will lecture on "Economic and Political Realities: 2015 and Beyond" at 7:00 p.m. on Wednesday, November 12.

U.S. slipping into disastrous engagement against Islamic State

Chicago Tribune - Oct 08, 2014 -"What follows from changing the original goals of the mission is all too evident in the failed U.S. efforts in Afghanistan and Iraq. Now the United States has fallen into that trap with the Islamic State," writes Marvin Zonis. Also appeared in the Las Vegas Sun.

Veterans’ start-up will help those in military save money on financial services

Chicago Sun-Times - Oct 14, 2014 - Students Jason Smartt and Ceasar M. Munoz founded CreditServe, which provides financial services to active-duty personnel, steering them away from predatory lenders.

3 Steps for Turning Customers Into Investors

Yahoo Finance - Oct 10, 2014 - Enthusiastic customers and community members make great investors, says Mike Moyer, a serial 'trep who teaches entrepreneurship at Northwestern University and the University of Chicago Booth School of Business. "They're the ones who'll spread the word about your business," he says. Article also in Entrepreneur.

Nobel Prize in Economics Awarded for Work on Regulation

Inc. - Oct 13, 2014 - Jean Tirole of France was awarded the Nobel Prize for economics for his research regarding the way policymakers should deal with companies that dominate industries. Last year's winners, Eugene Fama and Lars Hansen were mentioned. Articles also appeared in Financial Times, PBS News Hour, Yahoo, The Times of India, ABC, CBS, NBC, CNNMoney.

Negotiate like a Boss: 6 Secrets from an Award-Winning Booth School Prof.

Inc. - Oct 10, 2014 - "Negotiation is the essential leadership skill for those creating a different future, and it is the ultimate exec skill for problem solving. Entrepreneurs do that every day," says Linda E. Ginzel, Clinical Professor of Managerial Psychology.

How Laissez-Faire Economics Led to Inequality and Recession

The Huffington Post - Oct 14, 2014
- The economics profession became more extreme in their support of the power of free markets, and what had been known as the efficient markets theory went off the rails. Economists like Eugene Fama began to claim there were no speculative bubbles.

No, Mainstream Economists Did Not Just Reject Thomas Piketty’s Big Theory

Slate - MoneyBox - Oct 15, 2014 - On Tuesday, IGM released a poll on Piketty’s trademark argument that inequality will increase when the return on capital exceeds the rate of economic growth, shorthanded as r>g.

JPMorgan Chase Funds New Financial Workshop Series at the Chicago Innovation Exchange

MarketWatch - Oct 07, 2014 - The series will complement and build on the success of workshops offered by the Polsky Center for Entrepreneurship and Innovation and UChicagoTech, the University’s Center for Technology Development and Ventures.

Booth to partner with U of I engineering

Crain's Chicago Business - Oct 15, 2014 - Booth is partnering with the University of Illinois College of Engineering in Urbana-Champaign to bring students from both schools together to work on start-ups. “We have a number of people who come to business school who have business ideas but don't have the technical skills to make them happen,” said Ellen Rudnick.


ALUMNI

Giving Back to Your School in a Big Way

New York Times - Oct 10, 2014 - Alumnus David Booth told the dean of the business school that he was going to give $300 million, the largest gift to the University of Chicago and the largest to any business school, when it was announced in 2008.

IPC Names New General Counsel and Corporate Secretary

CNBC - Oct 10, 2014
-IPC The Hospitalist Company, Inc., a leading national hospital medicine and post-acute physician group practice company, announced today that it has appointed alumna Kelli Newman to the position of General Counsel and Corporate Secretary.

Finding the next Zuckerberg who will change the world

CNBC - Oct 06, 2014
- Alumni Satya Nadella and Debra Crew are listed on the CNBC list of innovators who are expected to have the most impact on business by 2039.

2015 AQR Insight Award Call for Papers

Bloomberg Businessweek - Oct 15, 2014 - AQR Capital Management today began accepting submissions for its fourth annual AQR Insight Award, which recognizes and rewards important, unpublished academic papers that best address challenges facing institutional investors. The AQR Insight Award Committee includes Toby Moskowitz and alumni Gregor M. Andrade, John Liew and Clifford S. Asness.

Portfolio Tips From a Market Pro

Bloomberg Businessweek - Oct 17, 2014 - One new source for ideas that punters can tap for free is Cliff’s Perspective, a blog started in September by Clifford Asness, the co-founder and chief investment officer of AQR Capital Management in Greenwich, Conn. Asness earned his Ph.D. in finance at the University of Chicago under Eugene Fama.

Chevron’s Watson Sees Secure Future in Global Oil Thirst

Bloomberg Businessweek - Oct 17, 2014 - Alumnus and Chevron Corp. CEO John Watson spends an hour talking about the future of global energy and doesn’t once mention the price of oil.

NorthWest International Healthcare Properties REIT announces addition to senior management team and confirms timing of its management internalization

Bloomberg Businessweek - Oct 17, 2014
- NorthWest International Healthcare Properties Real Estate Investment Trust is pleased to announce the addition of alumnus Vince Cozzi as Co-President and Chief Investment Officer of the REIT and to the senior management team as its external asset manager.

James M. Nicholson Elected to Board of Directors of Amerisure

Bloomberg Businessweek - Oct 13, 2014 - The Amerisure Companies announce the election of alumnus James M. Nicholson to the board of directors of Amerisure Mutual Holdings, Inc. and the Amerisure Companies.

Aasonn Announces New Executive Leadership Appointments

Bloomberg Businessweek - Oct 07, 2014 - Aasonn, LLC, a global HR Strategy, Technology & Outsourcing company, today announced new executive leadership appointments: alumnus John Ciardiello has been named Chief Financial Officer.

James R. Wigand to Join Millstein & Co. as Partner

Bloomberg Businessweek - Oct 07, 2014 - Millstein & Co., a financial advisory firm that develops solutions for complex corporate and public finance problems, today announced that it has hired alumnus James R. Wigand to join Millstein & Co. as Partner.

Ivascyn Survives Allianz Firing to Guide Pimco Post-Gross

Bloomberg - Oct 01, 2014
- Pimco is promising a new, more collegial, team-oriented approach led by alumnus Daniel Ivascyn, CIO. Co-workers and former employees at the firm, including former heir apparent Mohamed El-Erian, call him an inspiring leader and a great person.

BloomNation raises $5.5 million in Series A funding

Chicago Tribune - Oct 07, 2014 - BloomNation, a Los Angeles-based floral delivery startup that has University of Chicago roots, announced Tuesday it had raised $5.55 million to close its Series A funding. Alumnus David Daneshgar and his colleagues started the company in 2011.

Genclis SAS appoints Mr. Stéphane Boissel as CEO

Yahoo - Oct 13, 2014
- Genclis, an innovative diagnostic company in the fields of allergy and cancer, announced today the appointment of alumnus Stéphane Boissel as CEO.

Top Investment Advisory Firms In Denver Announce Merger

Yahoo Finance - Oct 07, 2014
- Wood Investment Counsel & Obermeyer Asset Management Join Forces: alumnus George Wood, founder of Wood Investment Counsel, will be co-chairman. The merger will place Obermeyer Wood among the top 10 investment advisory firms in Denver with approximately $1.7 billion in managed assets.

modus health Names Corporate Board of Advisors

Yahoo Finance - Oct 02, 2014 - Alumnus Rimas Buinevicius is one of eight key appointments today to the Corporate Advisory Board of modus health, llc, a digital health company.

Venture capitalists love this gluten-free baking mix company

Crain's Chicago Business - Oct 06, 2014 - This past June, alumnus and CEO of Simple Mills, Katlin Smith tied for first place at the 2014 University of Chicago Booth New Venture Challenge for student-created businesses.