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Booth in the News; Spring 2012, Vol. 3

(Covering April 17 to May 4, 2012)

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

Section 1: News coverage of Chicago Booth.

  • BLOOMBERG BUSINESSWEEK. Booth was featured in an article headlined "Honesty is the Best Policy for MBA Job Seekers," published April 27. A recent study found that candor is the best approach job seekers can take when interviewing, even though the temptation can often be strong to misrepresent oneself to appear a stronger candidate, the article said. The report's findings are "totally in line" with how Booth advises students beginning their job searches, said Julie Morton, associate dean of career services and corporate relations. "Our assumption is that you can be candid and professional at the same time," she said.
    Read article
  • THE ECONOMIC TIMES OF INDIA. An entire article devoted to Booth's annual Tata India Leadership Summit was published April 24. The student-organized conference featured presentations by Y V Reddy, former governor of the Reserve Bank of India, Tata executives and others. Sessions looked at what may be in store for India during the next decade. 
    Read article
  • AUSTRALIAN FINANCIAL REVIEW. Booth and Wharton are among the most sought-after exchange destinations for students at the Australian Graduate School of Management, according to an article published April 23. Academic performance is important in determining which students get assigned to Booth, the article said.
  • EDUCAWEB (Spain). Booth's global alumni network was featured in Q&A interview with Clinical Professor Michael Gibbs posted April 26. Professor Gibbs is also faculty director of the Executive MBA Program. This education website claims 300,000 users. 
    Read article in Spanish.
  • PHILADELPHIA INQUIRER. Results of the latest Chicago Booth/Kellogg School Financial Trust Index were published May 2. The findings show that fewer people fear a large stock market drop and Americans are more confident about home values increasing compared with the previous report three months ago. "This quarter we also saw an increased appetite for financial risk," said Professor Luigi Zingales, who coordinates Booth's portion of the study. 
    Read article

Section 2: News coverage quoting Chicago Booth faculty.

  • BLOOMBERG NEWS. Professor Steven Kaplan published an op-ed titled "Jobs, Not the 1%, Are What Make Americans Fret," April 25. "It is suggested that growth in income inequality has been a significant contributor to the current financial crisis and the slow recovery," he wrote. "If those concerns are valid, it would be reasonable to expect that increased inequality at the top should be associated with a decline in household well-being. That isn't the case. In fact, household well-being is much more closely related to unemployment that it is to the increase in pretax-income inequality. This implies that policies that focus on reducing inequality at the top, but don't reduce unemployment, aren't likely to improve well-being," Professor Kaplan wrote. 
    Read article
  • BLOOMBERG NEWS. Professors John Cochrane, Douglas Diamond and Anil Kashyap contributed to an op-ed by members of the Squam Lake Group titled "SEC Beware, Money Funds Can Bring System Down," April 18. "News reports suggest that the Securities and Exchange Commission may be backing away from a reform of money-market funds," they wrote. "This would be a mistake." In addition to Professors Cochrane, Diamond and Kashyap, the Squam Lake Group includes faculty from Harvard, Princeton, Columbia and several other universities. 
    Read article
  • MINT (India). Professor Raghuram Rajan published an op-ed titled "What spoils India's next generation reforms," April 19. "Even as the world becomes more competitive, India's star has dimmed in the last few months," he wrote. Its governance "is besmirched by corruption scandals" and its macroeconomic health has deteriorated. The op-ed was an edited version of a speech Professor Rajan gave in New Delhi. 
  • FOREIGN AFFAIRS. Professor Raghuram Rajan published an article titled "The True Lessons of the Recession: The West Can't Borrow and Spend Its Way to Recovery," in the May/June issue. "Rather than attempting to return to their artificially inflated GDP numbers from before the crisis, governments need to address the underlying flaws in their economies," he wrote. "In the United States, that means educating or retraining the workers who are falling behind, encouraging entrepreneurship and innovation, and harnessing the power of the financial sector to do good while preventing it from going off track." 
    Read article
  • BLOOMBERG NEWS. Professor Ray Ball published an op-ed on the consequences of mark-to-market accounting. "FASB (the Financial Accounting Standards Board) is correct that market-to-market accounting puts more up-to-date information in financial statements, but the theory on which that belief is founded places too little emphasis on what investors actually use the information for," he wrote. "Until standard setters change that mindset, investors need to exercise caution." The op-ed was published May 2. 
    Read article
  • THE NEW YORK TIMES. Research by Associate Professor Jane Risen was featured in an article headlined "Of Pretzels, Space Heaters and the Fate of the Planet," published April 18. Professor Risen found that people's opinions about global warming could be influenced by the temperature when they took the survey. The experience of being hot caused people to be more likely to say that global warming was a problem, the research showed. Professor Risen "has done some of the most interesting work in this area," the article said. 
    Read article
  • CHICAGO TRIBUNE. A profile of Professor Richard Thaler was published on the front page of the business section April 30. "If there's one thing to know about world-renowned behavioral economist Richard Thaler, it's that he's human," the article starts out. "Just as important? He thinks you are too." Professor Thaler "is famous for devising easily understood scenarios that show how human behavior bucks economics and, sometimes, logic." He is an informal adviser to President Obama's administration and to his re-election campaign, and a formal adviser to the "Behavioural Insight Team" in Prime Minister David Cameron's administration in the United Kingdom, the article noted. 
    Read article
  • NPR MORNING EDITION. Professor Randall Kroszner said he expected the Federal Open Market Committee to keep interest rates at their current level when the committee issued its statement a few hours after his April 25 interview was broadcast. "There really hasn't been enough information since the last meeting to suggest any change," he said. Professor Kroszner was a Federal Reserve Governor and FOMC member from 2006 to 2009. 
    Listen to broadcast
  • THE WASHINGTON POST. New research by Professor Erik Hurst on income and consumption inequality was featured in an article headlined "The rich are different than you and me: They spend more," published April 26. Professor Hurst found that consumption inequality within the U.S. between 1980 and 2010 increased by nearly the same amount as income inequality. 
    Read article
  • THE WALL STREET JOURNAL. Professor Raghuram Rajan discussed the need for stronger education during an appearance at the Milken Institute's annual global conference, according to an article published April 30. All economies need strong education in order to be competitive in a world where human capital is becoming more important, he said. "A lot of people don't have the skills to compete … There is a deep divide that has gone up over the last 20 (or) 30 years." 
    Read article
  • THE WALL STREET JOURNAL. Professor Raghuram Rajan's assessment of the global wealth gap was featured in an article published May 4. "Economists such as the University of Chicago Booth School of Business' Raghuram Rajan have argued convincingly that the U.S. wealth gap, which got to its widest level since 1928 before the 2008 crisis, was a contributor to the credit bubble that led to it," the article said. "The idea was that people tried to keep up with their peers and through access to credit were able to live under the illusion that they were almost doing so – hence the ridiculous McMansions and the balloon payment mortgages that financed them." 
    Read article
  • CRAIN'S CHICAGO BUSINESS. Clinical Professor James Schrager was quoted in a front page article on Sears headlined "Where America Shopped," published April 23. "Sears was so powerful and so successful at one time that they could build the tallest building in the world that they did not need," Professor Schrager said. "The Sears Tower stands as a monument to how quickly fortunes can change in retailing, and as a very graphic example of what can go wrong if you don't ‘watch the store' every minute of every day." 
    Read article
  • CNN.COM. Research on leisure time by Professor Erik Hurst was featured in an article headlined "Leisure inequality: Who's bumming around more?" posted May 2. While the income gap between the rich and poor has grown since the 1980s, the leisure divide has widened, too, the research found. Leisure time for highly education men, who generally have higher incomes, has gone down while leisure time for men with little education has increased. Women followed a similar pattern, Professor Hurst found. 
    Read article
  • MARKETPLACE RADIO. Professor Steven Kaplan was featured in a story about the Say on Pay vote by Citigroup shareholders over CEO pay. Even though the vote isn't legally binding, it carries a lot of weight, Professor Kaplan said. "There's no doubt boards (of directors) pay attention. No doubt," he said. The story was broadcast April 18. 
    Listen to broadcast
  • YAHOO FINANCE. Professor Austan Goolsbee reacted to the latest employment report and how it might impact President Obama's reelection chances during an interview broadcast May 4. "If the growth rate was 3% or above you'd probably see significant improvement in the labor market and the President's campaign would be feeling good," he said. "And if the growth rate is below 2%, it will probably be an uphill struggle for them." The current growth rate of the economy is somewhere in between those two numbers, Professor Goolsbee said. 
    Watch video
  • CNN INTERNATIONAL. Professor John Cochrane discussed austerity in Europe and what's needed to fix the U.S. economy during an interview broadcast April 26. "A lot of austerity is raising taxes in ways that loudly say ‘don't start a business here, don't hire somebody here,'" he said. The U.S. meanwhile, should "get rid of taxes that are preventing hiring, clean up our ridiculous tax code and get rid of the nanny regulators."
  • ESPN. Professor Tobias Moskowitz discussed the research that went into his book "Scorecasting: The idden Influences Behind How Sports Are Played and Games Are Won" during an interview broadcast April 18. Home field advantage is highest in soccer and basketball, and lowest in baseball, he found. 
  • CNBC. Professor Randall Kroszner discussed what the Federal Reserve might say in its policy statement April 25. He was interviewed in the early morning before the Fed announcement. 
    Watch video
  • CNN. Professor Austan Goolsbee discussed tax reform and whether Americans today are paying more taxes than they used to during an interview broadcast April 17. Also appearing with Professor Goolsbee was Grover Norquist, president of Americans for Tax Reform. 
    Watch video
  • CHICAGO TRIBUNE. Assistant Professor Brent Neiman was quoted in an article about Chicago Mayor Rahm Emanuel's goal of doubling exports by 2016 to create 100,000 jobs. Professor Neiman said he wasn't optimistic the city could have much of an impact on increasing exports. Economists, he said, tend to favor policies that increase productivity, such as cutting red tape or allowing for a greater flexibility of the workforce. "It's very hard to think of steps the government can take to double exports," Professor Neiman said in the article published April 21. 
    Read article
  • BLOOMBERG TV. Professor Austan Goolsbee discussed the European financial crisis and eurozone growth challenges during an interview broadcast April 18. He also talked about the U.S. economy. 
    Watch video
  • CNBC. Professor Randall Kroszner gave portfolio recommendations beyond stocks and bonds during an interview broadcast May 2. He said investors should consider a relative value index like foreign exchange markets as a way to cope with a volatile market. 
    Watch video
  • PBS FRONTLINE. A one-hour interview with Professor Austan Goolsbee was posted on the program's website April 24 in which he discussed President Obama's response to the financial crisis. Professor Goolsbee was chairman of the President's Council of Economic Advisers from September 2010 to August 2011. 
    Watch video
  • CNN. Professor Austan Goolsbee discussed the job market and the economy during an interview April 25. "The policies that Governor Romney is proposing are multitrillion-dollar, high-income-oriented tax cuts, which are exactly like what we did in the 2000s, which did not work," Professor Goolsbee said.
  • BLOOMBERG RADIO. Professor Randall Kroszner said the U.S. economy is "very uneven" and only time will tell whether we will get a sustained recovery or not. He made his comments during an interview broadcast May 1.
  • LOS ANGELES TIMES. Professor Nicholas Epley was quoted in an article about a new study showing that people who think more analytically are less inclined to be religious believers than are those who tend to follow a gut instinct. Professor Epley, who was not involved in the study, said the findings show that belief isn't set in stone, but can respond to a person's context. "There's an illusion that our brains are more static than they actually are," he said in the article published April 26.
    Read article 
  • TRUSTEE MAGAZINE. (American Hospital Association). Adjunct Associate Professor Stephen Morrissette published an article in the April issue detailing how a Silver Cross Hospital in Joliet, Illinois, confronted payment reform with a physician joint venture. "A key insight was the realization that equity and board composition and governance control did not have to be proportional, he wrote. Professor Morrissette is a trustee of the hospital. 
    Read article
  • SCIENTIFIC AMERICAN. Research by numeric milestones Assistant Professor Devin Pope was featured in an article published April 23. Diamond dealers know their customers will pay significantly more for a 1-carat diamond than they would for a .99-carat one, he said, and so cut the stones accordingly. Professor Pope also showed that a car with 50,799 is worth $20 more than a car with 50,800 miles. But a car with 50,899 miles is still worth as much as it was at 50,800. 
    Read article
  • SCIENTIFIC AMERICAN. Research by Associate Professor Jane Risen was featured in an article headlined "Better Safe Than Sorry: Why We Believe in Tempting Fate," published May 4. "In recent years, Jane Risen of the University of Chicago and Thomas Gilovich of Cornell have shed more light than anyone on the phenomenon of tempting fate," the article said. Tempting fate usually refers to taking unnecessary risks or displaying hubris, the article said. "The universe seems interested not only in punishing certain behaviors but in punishing them in certain, ironic ways, Professor Risen and Gilovich have written. 
    Read article

Section 3: Chicago Booth students and alumni in the news.

  • REUTERS. David Booth, MBA '71, gave a rare interview to this news service which titled its story "Ever-selective DFA sees growth in Asia, US 401(k)," published April 23. Dimensional Fund Advisors, which Booth co-founded, is looking to open offices in Asia to grow its pension business, the article said. Last summer, DFA introduced its first tool for employers with 401(k) plans that will automatically allocate an investor's assets and contributions after the participant plugs in factors such as the amount they are willing to save per paycheck and how much money they hope to have to retire, the article said. 
    Read article
  • LOS ANGELES TIMES. Scott Griffith, MBA '90, was featured in a Q&A titled "Zipcar aims to make car sharing a way of life," published May 1. He is chairman and CEO of the nation's largest car-share program. Zipcar has nearly 700,000 members, the article said. 
    Read article
  • THE WALL STREET JOURNAL. Basili Alukos, a current student in the Evening MBA Program, and David Whiston, MBA' 07 were listed as "master stock pickers" in an article published April 20. They both are equity analysts at Morningstar. Alukos was ranked #1 in airlines and Whiston was ranked #1 in specialty retailers and services. 
    Read article
  • MARKETWATCH. James Davis, MBA '01 (XP-70) was named vice president of airports and guest services at Virgin America, a U.S. airline, according to an article published April 19. Previously he held a similar position at Hawaiian Airlines.
  • AMERICAN MEDICAL NEWS. Jon Lee, a current MBA/MD student, was quoted in an article about the increase in medical students pursing joint degrees. He hopes his joint degree will allow him to extend beyond his clinical practice to satisfy what he calls his "entrepreneurial itch," according to the article published April 23. Lee and several of his classmates founded Agile Diagnosis, which is developing a mobile app that would guide physicians through current best practices at the bedside. The company won Booth's New Venture Challenge last year. 
    Read article
  • DAYTON (Ohio) DAILY NEWS. Katie Hill-Gottesman, a current student in the Executive MBA Program, was featured in an article headlined "Start-up investments at 10-year high in Ohio," published April 30. She is founder of Commuter Advertising, which reaches 100 million bus riders per year, the article said. The company serves Chicago, Seattle, Kansas City, Dayton and other markets.
  • THE EXPRESS-TRIBUNE (Karachi, Pakistan). Usman Khosa, MBA '12 was quoted in an article headlined "Do international investors want Pakistan ETFs?" published May 2. "When building portfolios, an international diversified investor would search for certain yield given the risks, and can easily achieve that goal without exposure to Pakistan with its idiosyncratic and non-diversifiable risks (political, regulatory, liquidity)," he said. 
    Read article