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Autumn 2012 Vol 4

(Covering November 9 to December 6, 2012)

Here are highlights of the latest Booth news coverage.  The summary below represents only a portion of recent coverage. Questions about the summary should be directed to Allan Friedman, executive director of communications, by reply e-mail or by calling 773-702-9232.

This summary contains three sections.

Section 1:  News coverage of Booth.

  • BLOOMBERG BUSINESSWEEK.  Booth ranked number one for the fourth time in a row in the magazine’s biennial ranking of top U.S. business schools, published November 15.  Booth “is pretty far out front,” a Businessweek editor said during a webcast announcing the results.  “Then the next seven schools are grouped closely together.”  Booth was ranked #1 by corporate recruiters and received A+ grades for career services, teaching quality and the school’s ability to produce graduates who are critical thinkers.  The top schools in the overall ranking were 1) Booth, 2) Harvard, 3) Wharton, 4) Stanford and 5) Kellogg.
    View rankings.
  • FINANCIAL TIMES.   Booth was featured in an article headlined “Recruiters roll out the red carpet for MBA students,” published November 19.   Blue-chip companies, including consulting firms, are courting students at leading business schools like never before, the article said, adding “At Booth, for example, 30.2 per cent of 2012 graduates work in consulting compared with 26.9 per cent in 2010.”
    Read article
  • CHICAGO TRIBUNE.  The Polsky Center for Entrepreneurship will expand its scope as a result of an $8 million gift from Michael Polsky,  MBA ‘87, according to an article published December 5.   The new gift “will provide more opportunities for our business school students to interact with others across the university, and more opportunities to create new ventures,” Dean Kumar said in the article.   Michael Polsky, a Chicago energy entrepreneur, earlier donated $7 million to name the Center.   He has credited Booth for his success in business, the article said.
    Read article
    The Financial Times also ran a story about the gift, headlined “Chicago Booth beefs up entrepreneurship.”
    Read article
  • BLOOMBERG BUSINESSWEEK.  Booth was featured in an article headlined “For MBAs, Wall Street Loses its Luster,” published November 20.    “Students who were considering going into banking because it sounded like the natural path – and (they) hadn’t done a lot of soul searching – I think those students have absolutely been deterred,” said Julie Morton, associate dean of career services and corporate relations.   Jason Kingery, ’12, took a buyout from Citigroup, then enrolled at Booth, the article said.   He now works at Procter & Gamble in Cincinnati.  “I saw the writing on the wall when it came to investment banking as a long-term career,” Kingery said.
    Read article

Section 2:  News coverage of Booth faculty.

  • THE NEW YORK TIMES.  Professor Richard Thaler wrote the Economic View column headlined “Applause for the Numbers Machine,” November 17.   “The biggest winners on Election Day weren’t politicians; they were numbers folks,” he wrote.  “Computer scientists, behavioral scientists, statisticians and everyone who works with data should be proud.  They told us who was going to win, but they also helped to make many of those victories happen.”
    Read article
  • IL SOLE 24 ORE (Italy).  Professor Raghuram Rajan published an op-ed titled “Is Finance Too Competitive?” published November 13.  “Concerns about the deleterious effects of competition have always existed, even among those who are not persuaded that government dictate can replace markets, or that intrinsic human goodness is a more powerful motivator than monetary reward and punishment,” he wrote.  “Where the debate has been most heated, however, concerns the effects of competition on incentives to innovate.”
    Read article
    The same op-ed appeared in Mint (India).
    Read article
  • IL SOLE 24 ORE (Italy).  Professor Luigi Zingales wrote an op-ed titled “Obama Must Find the Courage to Act,” published November 8.   “Obama didn’t win; Romney lost,” he wrote.  “A president who in four years increased the debt by 50 percent, wasn’t able to reduce unemployment below 7.8 percent and didn’t submit a serious plan to reduce the explosion of health care costs for seniors (the health insurance fund for seniors will become insolvent in 11 years) could have been defeated easily.”
    Read article
  • SHANGHAI DAILY.   Professor Raghuram Rajan published an op-ed titled “Making banks a ‘normal’ industry,” November 27.  “In the financial sector, the incompetent take on more risk, hoping to hit the jackpot, even while the regulator protects them by deeming them too systemically important to fail,” he wrote.  “Instead of abandoning competition and giving banks protected monopolies once again, the public would be better served by making it easier to close banks when they get into trouble.”
    Read article
  • THE WALL STREET JOURNAL.   Research by Deputy Dean Steven Davis on economic policy uncertainty was featured in a column titled “Trying to Calculate the Cost of Uncertainty,” published December 5.   Professor Davis and his co-authors “have a way to measure policy uncertainty, which they attempt to link to the vigor of the economy,” the article said.    Separate research by Professors Lubos Pastor and Pietro Veronesi was also highlighted in the column.
    Read article
  • THE WALL STREET JOURNAL.  Research by Professor Nicholas Epley was featured in an article headlined “The Science Behind Gifting; Research Shows Which Gifts People Really Appreciate; Hint: Forget Thoughtful,” published December 3.  “It turns out it’s not the thought that counts, it’s the gift that counts,” Professor Epley said.    “The secret to being a good gift giver … is to give them what they want.”
    Read article
  • THE NEW YORK TIMES.  Research by Professor Amir Sufi was featured in an article headlined “Opportunity Missed in U.S. Bailout?” published November 22.    Professor Sufi has been doing “provocative research” on where stimulus dollars should be targeted, the article said.    He believes the U.S. government made a costly mistake by focusing on bankers and not homeowners.  “In my view, excessive levels of household debt were the reason the recession was so severe,” Professor Sufi said.    His thesis helps to explain one of the mysteries of the U.S. economy today, the Times wrote.
    Read article
  • THE NEW YORK TIMES.  Professor Amir Sufi was quoted on the front page of the business section in an article headlined “Mortgage Interest Deduction, Once a Sacred Cow, Is Under Scrutiny,” published November 26.   As President Obama and Congress try to hash out a deal to reduce the budget deficit, the mortgage interest deduction will likely be part of the discussion, the article said.   “This is definitely a chance worth jumping for,” Professor Sufi said.  “For a fixed amount of revenue, it’s better to remove deductions than increase marginal tax rates.”
    Read article
  • THE WALL STREET JOURNAL.  Professor Austan Goolsbee discussed whether the fiscal cliff can be avoided in a video interview posted on the newspaper’s website November 13.
    Watch video
  • REUTERS.  Research by Deputy Dean Steven Davis on economic policy uncertainty was featured in an article published December 3.    An index that measures levels of uncertainty weighing on the U.S. economy rose in November but remained well below its record high, despite the political standoff over the so-called fiscal cliff, the article said.   “The Economic Policy Uncertainty Monthly Index, which is calculated by academics at Stanford University and the Chicago Booth School of Business, rose to 196 points in November, up from 172 in October,” Reuters reported.
    Read article
  • THE NEW YORK TIMES.  Professor Richard Thaler was featured in an article headlined “Academic ‘DreamTeam’ Helped Obama’s Effort,” published November 12.  Professor Thaler was among a group of unpaid academic advisers to President Obama’s reelection campaign.  The group – which calls itself the ‘consortium of behavioral scientists,’ or COBS – provided ideals on how to counter false rumors, like one that President Obama is a Muslim, the article said.  It suggested how to characterize the Republican opponent, Mitt Romney, in advertisements.   It also delivered research-based advice on how to mobilize voters.
    Read article
  • FOREIGN POLICY MAGAZINE.  Professors Raghuram Rajan and Luigi Zingales were included in the magazine’s “Top 100 Global Thinkers,” published November 26.    Professor Zingales was cited “for reminding us what conservative economics used to look like,” the magazine said.   Professor Rajan was selected “for saving India from its politicians.”
    Read article
  • DOW JONES NEWSWIRES.  Professor Douglas Diamond was among a group of university economists and Federal Reserve officials who met with Treasury Secretary Timothy Geithner to discuss how to avoid going over the fiscal cliff, according to an article published November 29
    Read article
  • XINHUA NEWS (China).  Professors Austan Goolsbee and Randall Kroszner were featured in an article headlined “Economists anticipate less Sino-U.S. trade friction,” published November 29.    They made their remarks at a news conference in Beijing that was attended by CCTV and other media.
    Read article
  • FORBES.  Professor Eugene Fama was featured in an article headlined “Eugene Fama On Inflation, The Crisis, And Why You Can’t Beat The Market After Fees,” published December 2.  On the wisdom of hiring a human stockpicker, Professor Fama said: “An investor doesn’t have a prayer of picking a manager that can deliver true alpha.”
    Read article
  • NATIONAL PUBLIC RADIO.  Professor Randall Kroszner was featured in a story titled “Would Raising Taxes On Investment Income Hurt the Economy,” broadcast on All Things Considered.  “A significant spike in capital gains and dividends taxes would reduce the value of equities,” he said, adding that if stock prices go down, companies will have less money to invest in equipment and even employees.  “It’s not just a tax on the wealthy.  It’s a tax on the productive capacity of the economy,” Professor Kroszner said in the November 29 broadcast.
    Listen to broadcast
  • BUSINESS NEWS NETWORK (Canada).   Professor Raghuram Rajan participated in a 30-minute, live debate “Be it resolved: Your standard of living will fall over the course of your lifetime,” televised on November 29 throughout Canada.   He debated Howard Green, author of “The End of Growth.”
    Watch Part 1
    Watch Part 2
    Watch Part 3
  • CNBC.  Professor Austan Goolsbee said a balanced approach is the best way to avoid falling off the fiscal cliff.  He made his remarks during an interview broadcast November 15.
    Watch video
  • BLOOMBERG TELEVISION.  Professor John Cochrane talked about how the fiscal cliff issue might be resolved.   There will be a lot of “kick the can down the road,” he said during the November 13 interview.
    Watch video
  • SLATE.COM.  Associate Professor Emily Oster wrote a commentary titled “You’re Dividing the Chores Wrong,” November 21.   Even if one partner is better at all the chores “it is simply not efficient for the best cook and dishwasher to do all the cooking and dishwashing,” she wrote.  “The economic principle at play here is increasing marginal cost.  Basically, people get worse when they are tired.”
    Read article
  • THE WASHINGTON POST.   Research by Professor Amir Sufi was featured in an article headlined “Economists, Obama administration at odds over role of mortgage debt in recovery,” published November 22.     His research shows that people who owed huge debts when their home values declined cut back dramatically on buying cars, appliances, furniture and groceries.  People with little debt hardly slowed spending at all.
    Read article
    The South China Morning Post (Hong Kong) also covered Professor Sufi’s research November 28.
    Read article
  • THE NEW YORK TIMES.  Professor Steven Kaplan was quoted in an article about how some young Wall Street employees are subverting company firewalls to stay connected with Facebook, Twitter and Gmail.  Killing time had always been part of the job of a young analyst, he said.  “You work very long hours and often you’re waiting for someone to turn something around,” but “at the end of the day, if they don’t get their work done, they’re toast,” he said in the article published November 22.
    Read article
  • CHICAGO TRIBUNE.  Professor Sanjay Dhar was quoted in an article headlined “Retailers plan earlier start to Black Friday,” published November 12.  Despite discounts that often go beyond 50 percent, stories still make money on Black Friday sales, experts say.  That’s because shoppers in physical stores tend to spend more than they planned, said Professor Dhar.  In the store, ‘you end up making purchases that aren’t as marked down, in addition to the door-buster deals,” he said.
    Read article
  • STRATEGY+BUSINESS MAGAZINE.  Professor Luigi Zingales’ recent book “A Capitalism for the People,” was named one of the best business books of 2012 by this magazine published by Booz and Company.  In the book, Professor Zingales argues that “the current crisis of capitalism stems from an unholy alliance of Wall Street financiers and Washington politicos,” the article in the winter issue said.   
    Read article
  • THE OBSERVER (London).   Professor Richard Thaler’s recent book, “Nudge: Improving Decisions About Health, Wealth and Happiness,” was named one of six books that “have shaped political thinking since the crash,” according to an article published November 25.  
  • BLOOMBERG BUSINESSWEEK.  Professor Ray Ball was quoted in an article about an accounting rule that forces companies every three months to value living things from wheat crops to cattle, or so-called biological assets.  “It’s an accounting method that inherently introduces uncertainty,” Professor Ball said.  “Some of these numbers are difficult to estimate.  When there’s subjectivity, there’s always doubt in people’s minds.”
    Read article
  • CRAIN’S CHICAGO BUSINESS.  Clinical Professor James Schrager was quoted in an article about an increase in the number of manufacturing companies divesting businesses outside their core segments.  “The changing face of manufacturing globally forces these companies to look more carefully at what they do,” he said.  “Companies are looking for another way to change the game.”
    Read article
  • INVESTOR’S BUSINESS DAILY.  Adjunct Assistant Professor John Paul Rollert was quoted in an article examining economist Adam Smith’s “selling of free-market economics,” published November 23.   In Smith’s “Wealth of Nations,” published in 1776,  “he is arguing that lifting trade restrictions would result in every merchant pursuing the most profitable trade available to him, making the most efficient use of his time and money,” Professor Rollert said.
    Read article
  • BLOOMBERG BUSINESSWEEK.  Professor Steven Kaplan was quoted in an article about the increase in junk bond deals by private-equity firms as declining takeover volumes force them to look for new revenue.  “The larger private-equity shops, particularly the ones that are public, are looking for other revenue streams,” he said.  “Leveraged loans and high yield is where they have the expertise and the connections.”   The article was published November 21.
    Read article
  • THE ATLANTIC.  Findings from Professor Marianne Bertrand’s survey of Booth graduates from 1990 to 2006 were featured in an article headlined “Why Don’t More Women Get Promoted at Goldman Sachs?”, published November 26.   The survey suggested that family obligations were a huge part of the reason why females have so much trouble climbing the elite corporate ladder, the article said.
    Read article
  • THE NIGHTLY BUSINESS REPORT (PBS Television).   Clinical Professor James Schrager was one of the experts featured in a story about Chrysler adding 1,200 workers and investing $240 million in three Michigan plans.   The story was broadcast November 15.
    Watch video

Section 3:  Booth students and alumni in the news.

  • CHICAGO TRIBUNE.  Rishad Tobaccowala, MBA ’82, was featured in the Executive Profile November 12.  He is chief strategy and innovation officer at Chicago-based VivaKi, a unit of Publicis.  “His pioneering work in online advertising and ability to convey complex concepts in simpler terms has made Tobaccowala, a 53-year-old Indian-born executive, a go-to adviser among marketers and colleagues in a rapidly change industry,” the article said.
    Read article
  • DAILY FINANCE.COM.  John Edwardson, MBA ’72, was elected to the board of directors of Rockwell Collins, according to an article published November 14.   He is chairman and chief executive of CDW Corporation.