The Science of Scarcity

Harvard Magazine - Apr 15, 2015 - In 2011, in collaboration with Anuj Shah, now assistant professor of behavioral science at the University of Chicago Booth School of Business (then a graduate student at Princeton), they devised a study that they hoped would prove their point, inducing that same high-risk borrowing behavior in Princeton undergraduates by having them play a version of the American TV game show Family Feud. ... SMALL CHANGES can have huge effects, Mullainathan explains—an approach to policy that has gained traction during the last decade, in particular through the work of Richard Thaler, Walgreen Distinguished Service Professor of behavioral science and economics at Chicago’s Booth School, and Walmsley University Professor Cass Sunstein, of Harvard Law School. (Article also mentions former professors Brigitte Madrian and Dennis F. Shea.)

Economists Still Think Economics Is the Best

The Atlantic - Apr 14, 2015 - Luigi Zingales, a respected economist and finance professor at the University of Chicago’s Booth School of Business quoted in the AER paper, worries that the proximity of his economist colleagues to the business and finance worlds will threaten their independence and shape their agenda, conclusions, and recommendations.

Invest Like Mr. Spock, Not Homer Simpson

Barron's - Apr 04, 2015 -Richard Thaler now teaches behavioral economics under the same roof as Eugene Fama, at the University of Chicago's Booth School of Business, and since 1998 has been a principal at Fuller & Thaler, a small investment firm with $3.6 billion in assets under management. His latest book, Misbehaving: The Making of Behavioral Economics, will be published in May.

One way to use CTA's multimillion-dollar hole in the ground at Block 37

Crain's Chicago Business - Apr 15, 2015 - Now, a more serious proposal for the world's biggest unfinished basement is being pitched by some MBA students at the University of Chicago's Booth School of Business, and the concept actually may make sense. The idea: Use the space, which cost well over $200 million to build and which never is going to be a train station, as a data center. As Booth's Scott Ebbott and Matt Olsen explain it, the super-station—or, more accurately, the shell of a super-station—is conveniently located near key fiber optic data lines and on the same block as an electric substation.

Arthur Laffer has a never-ending supply of supply-side plans for GOP

Washington Post - Apr 09, 2015 - Arthur Laffer had graduated from Yale, earned a doctorate from Stanford, taught at the University of Chicago in a department that included the free-market champion Milton Friedman. He had been the first chief economist of the Office of Management and Budget in Washington, under President Richard Nixon, with the legendary George Shultz as his mentor. ... Most recently, the University of Chicago's Owen Zidar showed that the biggest gains from tax cuts come when rates are reduced for low-income workers. In 2012, the University of Chicago's Booth School of Business asked a panel of respected economists from across the political spectrum whether they believed an income tax cut today would lead to higher tax revenue five years from now, compared with a world with no tax cut. Not a single respondent said it would. (References Professor Owen Zidar; former faculty members Arthur Laffer and George Shultz; and the IGM poll.)

Why a Harvard Professor Has Mixed Feelings When Students Take Jobs in Finance

New York Times - Apr 10, 2015 - In an influential paper, the economists Kevin M. Murphy and Robert W. Vishny, both at the University of Chicago Booth School of Business, and Andrei Shleifer at Harvard University argue that countries suffer when talented people become what we economists call “rent seekers.” Instead of creating wealth, rent seekers simply transfer it — from others to themselves.

Bigotry Is Expensive

Bloomberg View - Apr 08, 2015 - In “The Allocation of Talent and Economic Growth,” economists Chang-Tai Hsieh and Erik Hurst of the University of Chicago Booth Business School and Charles Jones and Peter Klenow of Stanford estimate that one fifth of total growth in U.S. output per worker between 1960 and 2008 was due to a decline in discrimination. (Syndicated article also appears in Crain's Chicago Business, The Oregonian, Houston Chronicle and more.)

However low interest rates might go, the IRS will never act like a bank

Quartz - Apr 15, 2015 - Another important mark of how seriously economists are taking this possibility of a change in the current paper currency policy are the arguments by University of Chicago Finance Professor John Cochrane that a change in paper currency policy alone is not enough to allow deep negative interest rates, in his blog post "Cancel currency?" (followed up by "More Cash and Zero Bound.")

Today's Personality Tests Raise the Bar for Job Seekers

Wall Street Journal - Apr 15, 2015 - Steven Davis, a University of Chicago economist who has studied the gap between job openings and hires, found the annual sum of hires and separations—called labor-market churn—has declined by more than 25% since 2000, suggesting, he said, that as employers intensify their front-end screening, among other factors, "a larger fraction of the people they hire are working out." (Article also appears on Yahoo! Finance.)

How Many Jobs Did 2012 IPO Act Create? Hard to Tell

Wall Street Journal - Apr 02, 2015 - Steven Davis, a University of Chicago economist, said more time is needed to assess the impact of the changes. "Even if the JOBS Act is a success, and if there’s a handful of [Google-like companies] in this group, we won’t really know for a while," he said.

Celebrating the auto bailout’s success

Washington Post - Apr 01, 2015 - Even some bailout supporters profess surprise at how well it worked. In a new essay (from which most of the numbers here are drawn), economists Austan Goolsbee of the University of Chicago and Alan Krueger of Princeton University — both worked for the Obama administration in early 2009 — admit that the "industry's outsized contribution to the economic recovery [was] . . . unexpected." (Syndicated column also appears in other publications.)

Has American Business Lost Its Mojo?

New York Times - Apr 01, 2015 - In a widely cited September 2014 paper, "Labor Market Fluidity and Economic Performance," Steven J. Davis and John Haltiwanger, professors of economics at the University of Chicago and the University of Maryland, respectively, wrote: "The U.S. economy experienced large, broad-based declines in labor market fluidity in recent decades. Long-term declines in job and worker reallocation rates hold across states, industries, and demographic groups defined by gender, education and age. Fluidity declines are large for most groups, and they are enormous for younger and less educated workers."

Study: Your Voice Is The Secret To Getting Hired

Forbes - Apr 03, 2015 - A new study by University of Chicago Booth School of Business researchers, to be published by the Journal of Psychological Science, found that job candidates were more likely to be hired if they make their pitch using their voice rather than text. (Article also appears in Realtor Magazine.)

McDonald’s To Raise Starting Pay $1 Over Minimum Wage

CBS Chicago - Apr 02, 2015 - Pradeep Chintagunta is a marketing professor at the University of Chicago Booth School of Business. He says the move by McDonald’s at the corporate level could put pressure on the franchisees.

What can the Fed do about income inequality?

Marketplace - Apr 02, 2015 - Randall Kroszner, an economics professor at the University of Chicago's Booth School of Business, says, "I think we have much more data than we did before to drill down into the micro-factors that may be driving macroeconomics."

Profits Without Honor: The Sad Truth About CEO Compensation

Huffington Post - Apr 14, 2015 - Douglas Skinner, accounting professor at the University of Chicago, in a July 2014 article for FiveThirtyEight highlights that beginning in 2001, "...firms are now paying out relative to investments about twice as much as ever before." He concludes, "...this mania for buyouts is taking place when the market is at record highs, in part to try and juice earnings to sustain these valuations. Not to be a doomsayer, but it is hard to see how all of this ends well."

It’s the Weekend! Why Are You Working?

Harvard Business Review - Apr 10, 2015 - In a series of laboratory studies, Christopher K. Hsee of the University of Chicago and his collaborators showed this was true even when they eliminated possible reasons participants could use for over-earning, such as uncertainty about the future and a desire to pass on money to others.

Three Books Explore How to Make Smart Choices

Scientific American - Apr 09, 2015 - In Wiser: Getting beyond Groupthink to Make Groups Smarter (Harvard Business Review Press, 2015), Cass Sunstein, a professor at Harvard Law School, and Reid Hastie, a professor of behavioral science at the University of Chicago Booth School of Business, delve into the psychology of group decision making—why the hive mind can make mistakes and how to avoid those pitfalls.

Opinion: Feminists overreach with Equal Pay Day

MarketWatch - Apr 13, 2015 - Many studies, such as those by Professor June O’Neill of Baruch College and Professor Marianne Bertrand of the University of Chicago, show that when women work at the same jobs as men, with the same accumulated lifetime work experience, they earn essentially the same salary. (Article also appears on

This unorthodox plan may keep Greece in the eurozone

MarketWatch - Apr 08, 2015
- "This is the system that Cuba has — there's Cuban currency, and there are dollars," said John Cochrane, an economist and professor at the Chicago Booth School of Business, whose blog post on the topic was also cited by the Financial Times' Wolfgang Münchau. (This article also appears on

Rise of the Machines: The Future has Lots of Robots, Few Jobs for Humans

Wired - Apr 07, 2015 - There's a phenomenon called the Peltzman Effect, based on research from an economist at the University of Chicago who studied auto accidents. He found that when you introduce more safety features like seat belts into cars, the number of fatalities and injuries doesn't drop. (Research by Sam Peltzman is cited.)

"What would happen if women could order Brad Pitt’s sperm?"

Salon - Apr 04, 2015 - Robert Fogel, a University of Chicago economist, while studying the effects of American slavery, discovered that over the past few centuries—particularly in the last fifty years—Americans in general have been growing taller, living longer, and getting thicker. In 1850, the average American male was five feet seven inches tall and weighed about 146 pounds. By 1980 he stood five feet ten inches and weighed 174 pounds. A team of economists extended the statistical search worldwide and found the trend was global.

Measure for Measure, Index Funds Rule

New York Times - Apr 04, 2015 - Using a database developed at the University of Chicago, known as C.R.S.P., for the Center for Research in Security Prices, the study avoided what is known as “survivorship bias,” Ms. Soe said. For example, the latest Spiva Scorecard examined the performance and characteristics of 2,080 actively managed mutual funds in existence 10 years ago.

Can You Learn to Lead?

New York Times - Apr 07, 2015 - Kenan-Flagler at the University of North Carolina, for example, leans heavily on sociology and psychology in constructing a “scientific” approach to the task. Kellogg, Wharton at the University of Pennsylvania and Booth at the University of Chicago, on the other hand, emphasize role-playing and team-building exercises to develop leadership experience.

M.B.A. Programs That Get You Where You Want to Go

New York Times - Apr 07, 2015 - In 2014, Stanford put 12 percent of its graduates into private equity jobs, a larger percentage than Wharton at the University of Pennsylvania (8.5 percent), Booth at the University of Chicago (5.1 percent) and Columbia (2.4 percent), and a shade less than Harvard (13 percent).

Kellogg, Booth students show increased interest in working at startups

Chicago Tribune - Apr 06, 2015 - At the University of Chicago, career counselors expect similarly large crowds next week at the Booth School of Business’ Start-up Networking Night. ... "Absolutely," said Hannah Williams, assistant director of the Booth’s Polsky Center for Entrepreneurship and Innovation. Booth has been doing a startup networking event since 2012, and Williams said interest continues to grow. (Article also appears on

Fed Policy Makers Seem Cool to Rate Increase in June

New York Times - Apr 08, 2015 -A few Fed officials argue that the central bank should not raise rates until wages and prices are rising more quickly. This was also the most common view among economists recently polled by the Booth School of Business at the University of Chicago. (Article cites IGM poll.)

Star economists say Fed should hold off on interest-rate hike

MarketWatch - Apr 08, 2015 - The poll was conducted by the Initiative on Global Markets, a nonprofit research center in Chicago. Among those saying the Fed should go slowly was the University of Chicago's Austan Goolsbee, who was the only respondent to say he "strongly agrees."

Use other companies' good ideas as inspiration

Arizona Republic - Apr 14, 2015 - Sidnee Peck: Recently I had the pleasure of visiting the University of Chicago Booth School of Business to learn more about their New Venture Challenge program. This is something I try to do as frequently as time and opportunity allow because it is important to learn about the competition: what they do, how they do it, and most importantly, how I can imitate.


The paradox of soil

The Economist - Apr 01, 2015 - Chang-Tai Hsieh, of the University of Chicago Booth School of Business, and Enrico Moretti, of the University of California, Berkeley, have made a tentative stab at calculating the size of such effects. But for the tight limits on construction in California’s Bay Area, they reckon, employment there would be about five times larger than it is.

Swachh Bharat: Time to make an impact

Forbes India - Apr 15, 2015 - Keeping all this in mind, the Social Enterprise Initiative of the University of Chicago Booth School of Business, together with Toilet Hackers and Samhita, is hosting a Convening on Sanitation in Delhi this week to stimulate behaviour change and usage. We are bringing together the government, NGOs, corporate India and academia to see how we can ensure that Swachh Bharat actually delivers what Prime Minster Modi set out to do. We will start off with Prof Richard Thaler of Chicago Booth talking about the need to change behaviour. Thaler wrote the best seller, 'Nudge', a few years ago and set up a 'Nudge Unit' under Britain's Prime Minister David Cameron. (The author of this op-ed, Luis Miranda, is a Booth graduate.)

Can you network in the air?

Business Life - Apr 14, 2015 - Whatever the reasons for our reluctance to reach out, Nicholas Epley and Juliana Schroeder from the Booth School of Business in Chicago suggest there are considerable upsides to connecting with strangers. In one of their studies they approached a random sample of commuters and asked them to start a conversation with someone on their journey to work and find out something interesting about them, and also tell them something about themselves.

Rajan ‘perfect’, says Modi

The Hindu - Apr 02, 2015 - Dr. Rajan, who has been Professor of Finance at University of Chicago and joined the RBI as its Governor in September, 2013, said on his part that there had always been a 'constructive dialogue' between the RBI and the government. (Article also appears on The (Calcutta) Telegraph, Hindustan Times, and other publications.)

US growth will not be enough to remove the rest of the world out of recession

O Globo - Apr 14, 2015 - The American economist Austan Goolsbee, a professor at University Chicago, believes that the United States will not be able to give a great contribution to the recovery of the global economy. For him, the world's largest economy should have more modest growth in the short term, although the worst of the 2008 crisis has been left behind.

Heads of business need neuroscience

Financial Times - Apr 06, 2015 - Now, "I'm reading everything I can get my hands on about neuroscience," says Abbie Smith of Chicago Booth business school, who has looked at the benefits for companies that appoint "frugal" executives. "We take as a given that these behaviours reflect mindset. But the question is: what can change?"

Here's why it is so hard for consumers to save money

Yahoo News India - Apr 01, 2015 - Daniel M. Bartels and Oleg Urminsky (both University of Chicago Booth School of Business) said that they've known that being aware of the benefits of not spending and being patient contribute to savings, but the research finds that one or the other is not enough. (Article also appears on Business Standard and Big News

When Rajan, Subramanian Got Flak at IMF for Leaked Paper

NDTV Profit - Apr 13, 2015 - Mr Rajan, currently on leave from the University of Chicago where he was Professor of Finance, has a large number of research papers to his credit. His research interests include banking, corporate finance and economic development, especially the role finance plays in it. (Press Trust of India article; also appeared on Daily News & Analysis, Business Today.)

Is it a choice between higher pay or a job?

BBC - Apr 15, 2015 - A survey of academic economists by the University of Chicago asked if raising the federal minimum wage would make it harder for low-skilled workers to find employment. The result was split between those who agreed and disagreed (34% and 32%, respectively) and 24% were uncertain. (Article cites IGM poll.)

Chicago: entrepreneurs like big city thinking and cheaper rents

Financial Times - Apr 07, 2015 - If cheap rent, world-class public transportation, Northwestern University and the University of Chicago were not enough, the city is also home to more than 400 corporations — including 30 Fortune 500 companies — many of which are looking to invest in the next big thing.


These five CEOs of top American brands were not born in the USA

The Economic Times - Apr 10, 2015 - Born in a Telugu speaking family in Hyderabad in India, Satya Narayana Nadella's father was a civil servant in India. Nadella did his schooling and graduation in engineering in India before moving to the US for his MS in computer science and MBA from University of Chicago Booth School of Business. He joined Microsoft in 1992 and became its CEO last year, succeeding Steve Ballmer.

Microsoft brings DelBene back for strategy and planning

CIO Magazine - Apr 14, 2015 - Kurt DelBene earned his MBA from the University of Chicago and a masters in operations research from Stanford University. His wife Suzan DelBene is a U.S. Congresswoman representing Washington.

R.I. Gov. Raimondo nominates 6 new board members to Commerce Corp.

Providence Journal - Apr 14, 2015 - Mary Lovejoy: Vice President and treasurer of the Providence-based Textron Inc., a $14-billion global, multi-industry company that employs more than 34,000 people. She replaces Shannon E. Brawley, of Richmond, whom Aberger said has resigned. Prior to her time at Textron, Lovejoy was a vice president and senior banker of First National Bank of Chicago for 16 years. She sits on the board of trustees for the Rhode Island School of Design and the board of directors for the Rhode Island Foundation. She earned her bachelor of arts from Dartmouth College and an MBA from the University of Chicago.

Embibing Technology for Exam Preparation

The New Indian Express - Apr 13, 2015 - Aditi Avasthi worked with TCS in the UK and Barclays Bank across Africa and the US, before deciding to pack her bags and return to India in 2012. An alumna of Thapar Institute of Engineering and Technology, Punjab, and the Booth School of Business at the University of Chicago, US, she currently runs Individual Learning, a startup backed by venture funds like Kalaari Capital and Lightbox Ventures, that uses data driven insights to help students improve their performance in examinations.

BloomNation: An Unconventional Startup Story

Bplans - Apr 01, 2015 - Like many other new entrepreneurs, neither David, Gregg or Farbod had experience in entrepreneurship. Though David Daneshgar attended the University of Chicago Booth School of Business, and had played professional poker, none of them had ever started a business before.