In the News 2018

Fed's bond buying during financial crisis was not that effective, economists say

Feb 23, 2018 | CNBC

This was the conclusion of a paper presented Friday by Wall Street and academic economists at the U.S. Monetary Policy Forum. The gathering, dubbed the "Jackson Hole of the East" by one strategist, is an annual conference sponsored by the University of Chicago Booth School of Business and brings together Wall Street and academic economists, as well as Fed officials.

Fed Should Lean on Rate Cuts, Not QE, in Next Recession: Paper

Feb 23, 2018 | Reuters/The New York Times

"We find that the Fed's balance sheet is a less reliable and effective tool than as perceived by many," concluded the paper presented at the annual monetary policy forum hosted in New York by the University of Chicago Booth School of Business.

Small Is Beautiful: Using Gentle Nudges To Change Organizations

Feb 22, 2018 | Forbes

Subtle and seemingly insignificant aspects of the environment in which decisions are taken can have substantial impact on people’s behavior. This is the premise of the book Nudge, written by Cass Sunstein, one of the most cited American legal scholars, and Richard Thaler, last year’s winner of the Nobel prize in economics.

A budget nudge isn’t likely to be enough to close the gender gap

Feb 21, 2018 | The Globe and Mail

It sounds a little like the behavioural economics that Richard Thaler and Cass Sunstein suggested a decade ago in a book called Nudge, which suggested policy makers could frame choices for the public to encourage better outcomes, often for less money.

TRUMP IS ONE BAD DAY AWAY FROM TWEETING “I’VE HAD THREE TIMES AS MANY WIVES AS OBAMA!”

Feb 21, 2018 | Vanity Fair

“Under the previous administration, we went from the worst downturn of our lifetimes to the second longest expansion on record,” Austan Goolsbee, C.E.A. chairman from 2010 to 2011 and an economics professor at the University of Chicago’s Booth School of Business, told me.

The Trouble With Google and Facebook

Feb 21, 2018 | U.S. News

LUIGI ZINGALES PROVIDES a window onto news illiteracy, or at least social media's penchant for the provocative over the reasoned.

Surveillance: The Key is Productivity, Rajan Says

Feb 21, 2018 | Bloomberg

Raghuram Rajan, University of Chicago Booth Business School Professor & Former Reserve Bank of India Governor, says it would be ideal for the new Fed Vice Chair to be someone who straddles both academic and policy worlds.

Benjamin Netanyahu corruption charges: Israeli PM faces toughest political challenge, but is unlikely to go quietly

Feb 20, 2018 | Yahoo!

An article in the Chicago Booth School's magazine Pro Market called the recordings "most amazing tapes in the history of corruption in Israel". It also noted that Israelis, for the first time, got to know of the shady deals struck between tycoons, government and regulators.

Here's what Donald Trump and the NRA get about humans that you don't

Feb 20, 2018 | Business Insider

We are changing the way we think about this stuff, though. The man who won the Nobel Memorial Prize in Economic Sciences last year, Richard Thaler of the University of Chicago, did so by explaining a bunch of ways humans persuade themselves to hurt themselves and how to work around that.

How Illinois Universities Power The Chicago Startup Ecosystem

Feb 20, 2018 | Forbes

The University of Chicago’s efforts to grow the startup community are widespread across disciplines, degrees, and communities.

The battle for time

Feb 19, 2018 | Sydney Morning Herald

Richard Thaler, a pioneering behavioural economist and latest winner of the Nobel prize for economics, emphasised how fallible humans can be when making economic decisions, in his acceptance speech just before Christmas.

A stunning chart shows the true cause of the gender wage gap

Feb 19, 2018 | Vox

A 2009 study led by University of Chicago’s Marianne Bertrand echoes that conclusion. It examined the earnings of thousands of business school graduates.

Is It Time To Sell?

Feb 18, 2018 | Seeking Alpha

A recent paper by the University of Chicago Booth School of Business professor George M. Constantinides and McGill University's Anisha Ghosh, "What Information Drives Asset Prices?" offers some insights.

List Of The Super Elite M7 Business Schools

Feb 16, 2018 | Poets & Quants

Of all the M7 players, Booth has the highest acceptance rate at 23.5%. But don’t let that fool you. There are 8.1 candidates for every available seat, more than Wharton.

Rising yields a sign of economic healing, not distress, expert says

Feb 15, 2018 | CNBC

Jeff Knight, Columbia Threadneedle global head of investment solutions, and Austan Goolsbee, University of Chicago Booth School of Business professor, discuss the current rising rate environment and what it means for investors.

I asked 7 Republican senators what they really think about legal immigration cuts

Feb 14, 2018 | Vox

When the University of Chicago’s Booth School surveyed a panel of well-known academic economists, for example, 52 percent agreed that admitting more low-skilled immigrants to the United States would make the average US citizen better off. Just 9 percent disagreed.

Kroszner Sees Powerful Duo in a Powell, Mester Fed

Feb 13, 2018 | Bloomberg

University of Chicago Booth School of Business Professor of Economics Randy Kroszner discusses the make-up of the Federal Reserve, and talks about the markets, economy and Fed policy.

Ask a behavioural economist: Why do I feel anxious during RRSP season?

Feb 12, 2018 | The Globe and Mail

A number of studies headed up by the behavioural scientist Anuj K. Shah and his colleagues at the Booth School of Business at the University of Chicago have shown that scarcity or even just the perception of scarcity is enough to trigger a mindset that can interrupt our critical thinking and cause us to focus on immediate needs.

Trumpism for Thee, but Not for Me

Feb 11, 2018 | The New York Times

In other countries, the most effective way to stop recent demagogues has been to treat them as normal politicians who are failing to deliver on their promises, as Luigi Zingales of the University of Chicago has noted.

A sloth’s guide to surviving a week of market volatility

Feb 9, 2018 | Financial Times

One laboratory study — by Mr Kahneman, Tversky, Alan Schwartz and last year’s Nobel laureate economist Richard Thaler — invited participants to make investment allocation decisions over 200 “turns”, each meant to simulate a few weeks of real investment. Some were allowed to reallocate every turn after observing what had just happened.

Don't Be a Victim of Irrational Exuberance

February 8, 2018 | Entreprenuer

Behavioral economist Richard Thaler has made a career of studying irrational and temptation-driven economic behaviors. Thaler, who won the Nobel Prize in economics in October of 2017, said in a recent interview, “we seem to be living in the riskiest moment of our lives, and yet the stock market seems to be napping.”

Why Estonia Succeeds At Public Innovation

February 8, 2018 | U.S. News

“In the U.S., the basic idea is that the government is willing to pay for good ‘pure research’ projects,” says James E. Schrager, professor of entrepreneurship and strategy at the University of Chicago Booth School of Business.

How to Bear a Bull Market: The Psychology of Volatile Securities Trading

February 7, 2018 | Scientific American

The work of visionaries such as Nobel laureates Richard Thaler and Daniel Kahneman has demonstrated humans do not operate as rational agents, as assumed by classical economics.

New Research Turns Conventional Wisdom On Food Deserts On Its Head

February 6, 2018 | WBEZ

But a new study by economists at New York University, Stanford, and University of Chicago’s Booth School suggests that even if there were access to healthier food options, like a nearby supermarket, that doesn’t necessarily mean residents would buy the healthier options.

Trump Falls Silent On Stock Market Slump

February 6, 2018 | NPR

"We saw a decent jobs number this last [week]. And we have seen in the last couple of years wages starting to inch themselves upwards," said Goolsbee, a University of Chicago economist who served as adviser to former President Barack Obama.

Are Americans Falling Out of Love With Chocolate?

February 5, 2018 | The Wall Street Journal

Craft chocolatiers, often claiming direct links with cacao-bean producers, are also proliferating. Elizabeth Pontikes, associate professor at the Chicago Booth School of Business, sees parallels with craft beer and coffee.

Dear Jay: High-Powered Advice for the Incoming Fed Chairman

February 5, 2018 | Bloomberg

Austan Goolsbee: “The Fed needs to be careful not to get too far in front of its skis in following an approach that’s different than every other central bank in the world.

Worried About Your Retirement Investments? Don't Panic Sell

February 5, 2018 | The Street

"Nothing happened on Friday that should induce a panic," said Richard Thaler, the 2017 recipient of the Nobel Memorial Prize in Economic Sciences, a professor of behavioral science and economics at the University of Chicago Booth School of Business, and author of numerous books, including Nudge: Improving Decisions About Health, Wealth, and Happiness.

AT&T merger judge says 'no big issues' in trial preparations

February 2, 2018 | Reuters/MSN

Both sides said they intended to call former Justice Department economists to support their case. AT&T will call Dennis Carlton, from the University of Chicago Booth School of Business, while the Justice Department will call Carl Shapiro of the University of California at Berkeley.

Surveillance: Where’s the Infrastructure Money, Goolsbee Asks

January 31, 2018 | Bloomberg

Austan Goolsbee, University of Chicago Booth School Professor, says the hypocrisy among lawmakers in Washington doesn’t make any difference anymore.

Will my genes doom my young daughter to a weight problem?

January 31, 2018 | The Boston Globe

In their 2008 book Nudge, Richard Thaler, a University of Chicago economist who won the 2017 Nobel Prize, and Cass Sunstein, a Harvard Law School professor, describe the unconscious social forces that drive our eating habits.

The real State of the Union: America has a huge political vacuum

January 31, 2018 | Salon

This dynamic is not new. Luigi Zingales, a professor of entrepreneurship and finance at the Booth School of Business at the University of Chicago, said a similar turbulence marked Silvio Berlusconi’s tenure as Italy’s prime minister.

How Trump’s Critics Should Respond

January 30, 2018 | The New York Times

Luigi Zingales of the University of Chicago has written what I think remains the smartest essay on this point. In an Op-Ed published shortly after the election, he explained that Trump fit a global pattern.

Donald Trump’s immigration crackdown is a recipe for national decline

January 30, 2018 | Vox

Indeed, there is a fairly firm consensus that immigration raises incomes on average for native-born workers. When the University of Chicago’s Booth School surveyed a panel of well-known academic economists, for example, 52 percent agreed that admitting more low-skilled immigrants to the United States would make the average US citizen better off.

How Your Business Changed After 1 Year of President Donald Trump

January 30, 2018 | Inc.

Trump's move to ease regulatory burdens on businesses has been palpable, says Steve Kaplan, a professor of entrepreneurship and finance at the University of Chicago Booth School of Business.

'Uphill battle' predicted for Outcome Health after settlement with investors

January 29, 2018 | Chicago Tribune

Rebuilding won’t come easy for Outcome Health, said Waverly Deutsch, a clinical professor of entrepreneurship at the University of Chicago’s Booth School of Business.

What to expect from Trump's first State of the Union address

January 29, 2018 | CNBC

Former Council of Economic Advisors Chairmen Glenn Hubbard, Columbia Business School, and Austan Goolsbee, Chicago Booth School of Business, discuss their expectations from President Trump's first State of the Union address.

How to save more money in 2018

January 26, 2018 | NBC

If you can assign your money particular “jobs” as it applies to meeting your goals, you’ll be more successful. That’s the idea at the heart of a behavioral finance concept called “mental accounting,” for which University of Chicago Economist Richard Thaler won the Nobel Prize in 2017.

Davos frets over future despite economic upgrades

January 25, 2018 | Financial Times

Raghuram Rajan, professor of finance at the University of Chicago and a former Indian central bank chief, said economists and technocrats had to accept that they were no longer in control of economic narratives, and that the post world war two story of international co-operation and prosperity was under threat.

5 simple steps to save more money — starting now

January 24, 2018 | NBC

This “bucket method” can make spending and saving simple. According to research by economist Richard Thaler from the University of Chicago, if you assign your money a particular job, you’ll be more successful in reaching your financial goals.

Why is the US stock market so high – and is it justified?

January 23, 2018 | The Guardian

Economic theory, as exemplified by the work of Andrei Shleifer at Harvard and Robert Vishny of the University of Chicago, offers ample reason to expect that long-term investment opportunities will never be eliminated from markets, even when there are a lot of very smart people trading.

Rupert Murdoch’s plan to make Facebook pay for news

January 23, 2018 | NBC

Guy Rolnik, a media entrepreneur who teaches in the business school at the University of Chicago, warned that securing payments from Facebook — even if possible — could come with a downside for the media industry.

West must share benefits of growth with emerging world: Rajan

January 23, 2018 | PTI/Economic Times

Former RBI Governor Raghuram Rajan on Tuesday said the Western world must realise they cannot go a long way without the help of the emerging economies and warned that no one would be able to resolve any problem of a 'fractured world' if things are not set right soon.

PM Narendra Modi in Davos, India gets IMF boost: At 7.4%, can be fastest growing this year

January 23, 2018 | The Indian Express/MSN

Providing a global perspective on new economic narratives will be former RBI governor Raghuram Rajan, who is now teaching at Chicago University’s Booth School of Business, and Robert Shiller, with sessions on cyber security, climate changes and big data among the subjects on the agenda.

Will Money Ever Bring You Happiness?

January 23, 2018 | U.S. News

"There is a positive correlation between, at a given time, wealth and subjective well-being even though the correlation is not strong," says Christopher Hsee, professor of behavioral science and marketing at the University of Chicago Booth School of Business. "Also, this correlation is particularly high for people in poor countries."

Economy on a good road, but watch out for these warning flares

January 23, 2018 | Chicago Tribune

“When people aren’t worried,” said Randall Kroszner, economics professor at the University of Chicago Booth School of Business, during the school’s annual economic outlook event last week. “When the shock comes, they’re not prepared.”

Sinking markets, emergency meetings: A Fed governor recalls 2008

January 22, 2018 | Marketplace

Randall Kroszner, now a professor of economics at the University of Chicago's Booth School of Business, served as a governor of the Federal Reserve from 2006 to 2009. He, along with a small team at the Fed, tracked the eye of the storm.

Trump’s Biggest Con May Be The One He Has Played On American Workers

January 20, 2018 | Huffington Post

In a survey of 42 top economists by the University of Chicago’s Booth School of Business, just one ― one! ― thought Republican tax cuts would significantly improve growth.

Why American men are getting less marriageable

January 20, 2018 | Business Insider/MSN

Marianne Bertrand, an economist at the University of Chicago's Booth School of Business, has found a "cliff" in relative income in American marriages at the 50-50 split mark.

Can a little nudge help in saving for retirement?

January 19, 2018 | The Globe and Mail

The idea of behavioural economics has been getting a lot of attention in recent months. In October, the 2017 Nobel Prize in Economics was awarded to Richard Thaler, professor of behavioral science and economics at the University of Chicago Booth School of Business, for his contributions to the field.

A Warning for Democrats

January 19, 2018 | The New York Times

Luigi Zingales of the University of Chicago explained this phenomenon in a Times op-ed shortly after Trump’s election. In the piece, Zingales compared Trump to Silvio Berlusconi, the former Italian prime minister.

Men Aren't Exactly Stampeding Back to Work

January 16, 2018 | Bloomberg

These explanations range from the purely cultural, such as American Enterprise Institute political scientist Charles Murray's "weakening of the work ethic among males," to the at least partly technological, such as University of Chicago economist Erik Hurst's hypothesis that the internet and better video games have "increased the value of leisure time" relative to work.

Steven Kaplan of University of Chicago’s Booth School of Business

January 16, 2018 | Middle Market Growth

This episode of the Middle Market Growth Conversations podcast features Steven Kaplan, the Neubauer family distinguished service professor of entrepreneurship and finance at the University of Chicago Booth School of Business.

Don't be fooled. Wall Street, not Main Street, is the big tax winner

January 14, 2018 | CNN

Owen Zidar, a University of Chicago professor who studies the effects of tax policy on firms and workers, agrees. "While workers will get some benefit, there are more substantial benefits to shareholders," he said.

Bitcoin Is an Asset Like Gold, Not a Currency: Former Fed Gov. Kroszner

January 13, 2018 | The Street

If you answered never, you're probably not alone. For that reason, said former Federal Reserve Gov. Randy Kroszner, bitcoin shouldn't be considered a crypto currency, but rather a crypto asset.

Transcript: Nightly Business Report – January 12, 2018

January 12, 2018 | CNBC

RANDALL KROSZNER, UNIVERSITY OF CHICAGO BOOTH: We are seeing synchronized global growth period which is really quite rare. I think that`s one of the key offsets of why both the market in the U.S. and markets globally are doing so well.

Don’t bet on higher US Treasury yields just yet

January 12, 2018 | Financial Times

According to Erik Hurst of Chicago Booth Business School, 18 per cent of men between 21 and 30 who did not have a college degree last year did no work at all.

It worries me that no one seems to be worried about markets: Former Fed Governor

January 12, 2018 | CNBC

Former Fed Governor Randy Kroszner weighs in on the record rally in equities, the state of the U.S. economy and his views on tax reform.

India's former central bank chief warns of unexpected changes

January 11, 2018 | Nikkei Asian Review

Raghuram Rajan, the former governor of the Reserve Bank of India, sees a 2018 global economy in fairly good shape but a financial industry that is "far from being in the clear." In an interview with The Nikkei, Rajan, who is now a professor at the University of Chicago, also warned that the world needs to stay vigilant against new and unforeseeable risks.

The 2018 Data Is In & The M7 Schools Remain Magnificent

January 10, 2018 | Poets & Quants

New year, old truth: The M7 schools continue to have an aura of exceptionalism that most other schools envy. Harvard Business School, Stanford Graduate School of Business, the Wharton School at the University of Pennsylvania, the University of Chicago’s Booth School of Business, Columbia Business School, MIT’s Sloan School of Management, and Northwestern University’s Kellogg School of Management may trade places in the full-time MBA program rankings, moving up or down a few places year to year, but they continue to be regarded as, generally, the best programs in the world.

Listening to what we don’t want to hear is often vital

January 10, 2018 | The Times

Let’s not forget the current craze for behavioural economics, which resulted in Richard Thaler, the economist, winning a Nobel prize. Behavioural economics proves that how we design public and private systems, right down to application forms, has a huge effect on people’s choices. It’s called “choice architecture”.

Five Must-Read Studies From the Big Economics Confab: Eco Pulse

January p, 2018 | Bloomberg

Using data collected through Adobe Analytics, which tracks online prices and quantities, University of Chicago economist Austan Goolsbee and Stanford’s Pete Klenow find that online inflation averaged about 100 basis points lower than inflation in the CPI for the same categories between 2014 and 2017.

FACT CHECK: Trump Touts Low Unemployment Rates For African-Americans, Hispanics

January 9, 2018 | NPR

Then again, a majority of economists polled by the University of Chicago predict that long term, the tax plan won't lead to higher economic growth.

The Startling Percentage Of Financial Advisors With Misconduct Records

January 9, 2018 | Forbes

The findings are contained in the forthcoming paper The Market for Financial Adviser Misconduct, scheduled to be published in the Journal of Political Economy. It was written with co-authors Gregor Matvos of Booth Business School at the University of Chicago, and Amit Seru of Stanford Graduate School of Business. Their initial working paper on the results made business headlines in 2016.

Here’s How to Tell if You’re a Populist

January 9, 2018 | Bloomberg

The panel featured some heavyweights, including Dani Rodrik of Harvard University and Raghuram Rajan of the University of Chicago. But the most interesting presentation was by someone who isn’t even an economist: Cristobal Rovira Kaltwasser, a political scientist at Diego Portales University in Chile.

What happens when the tax-plan promises aren’t kept?

January 8, 2018 | The Washington Post

Historically, “tax cuts aimed at the top of the income distribution have had very little stimulus effect,” said University of Chicago economist Austan Goolsbee, who had Mr. Hassett’s job during the Obama administration.

5 Tips for Surviving Uncomfortable Conversations

January 8, 2018 | Time

“Typically people think it’s going to be really uncomfortable,” says Emma Levine, an assistant professor of behavioral science at the University of Chicago Booth School of Business.

The psychology behind why we're so bad at keeping New Year's resolutions

January 7, 2018 | Business Insider

The study, led by Kaitlin Woolley from Cornell University and Ayelet Fishbach from the University of Chicago, found that participants believe that both enjoyment and importance are significant factors in whether they stick to their resolutions.

Uncommon Knowledge: Bros, basketball, and business economics

January 6, 2018 | Boston Globe

A study by a team of judgment researchers from Cornell University and the University of Chicago (including Richard Thaler, the latest winner of the Nobel Prize in economics) found that NBA and NFL teams typically went for the tie at the end of regulation, even though the probability of winning was lower, given the remaining uncertainty of overtime. In an experiment, even when people were explicitly informed of the lower probability, half still chose to go for the tie.

How to make economists fight like ferrets in a sack

January 6, 2018 | The Spectator

One of the funniest passages of writing I have read in the past few years appears within the pages of Richard Thaler’s memoir Misbehaving. He describes what happens when the University of Chicago economics faculty moves to a new location.

Richard H. Thaler | The Interview Show

January 5, 2018 | PBS

Host Mark Bazer interviews Richard H. Thaler, 2017 Nobel Prize winning economist and co-author, "Nudge."

Americans' declining economic mobility hits a new low

January 5, 2018 | The Los Angeles Times

In recent decades, the rate at which firms create new jobs has fallen; so has the rate at which they eliminate positions, said Steven J. Davis, a professor at the University of Chicago Booth School of Business and senior fellow at the Hoover Institution. Both trends discourage workers from moving.

This is how women are really faring in Chicago tech

January 5, 2018 | Crain's

At the University of Chicago's Booth School of Business, four of 10 New Venture Challenge finalists last year had female founders.

Does regulation kill off business profits, as Trump claims? Not at all

January 5, 2018 | Salon

But a new working paper from the National Bureau of Economic Research, written by University of Chicago researchers João Granja and Christian Leuz, supports the opposite contention: Stricter regulation can, in many cases, improve lending activity and benefit the economy.

Top 20 Business Schools Where MBAs Earn The Highest Salaries After Graduation For 2018

January 4, 2018 | Ceoworld Magazine

5. University of Chicago Booth School of Business, United States, $125,000

Can Your Vacation Make You Happier?

January 4, 2018 | next avenue

“We are our experiences,” said University of Chicago happiness researcher Amit Kumar. “Experiences become our memories, so investing in ones that will impact your identity in meaningful ways is likely to be fruitful in terms of advancing happiness.”

An MBA is still a great boost for salaries

January 3, 2018 | Financial Times

Alumni from Chicago’s Booth School of Business hold the record for the highest salary jump since our records began: up 252 per cent in the 2002 ranking during the heyday of the dotcom boom.

Job outlook growing worse for young American men | Opinion

January 2, 2018 | Courier Journal

Erik Hurst, an economist at the University of Chicago, found that young men spent a startling 75 percent of this leisure time playing video games, with many spending more than 30 hours a week gaming and over 5 million Americans spending more than 45 hours per week.

Inside the Eccentric, Relentless Deal-Making of Masayoshi Son

January 2, 2018 | Bloomberg

“There really isn’t a precedent for this,” says Steven Kaplan, a professor at University of Chicago’s Booth School of Business who co-founded its entrepreneurship program. “The jury is still out on whether it will work.”