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Booth in the News; Winter 2013, Vol. 1

Covering December 7, 2012 to January 4, 2013

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. The pay gap between men and women graduates of Booth is the smallest of the Top 10 business schools, according to new data published December 11. Women graduates from Booth’s Class of 2012 earn 99.3% of what their male counterparts earn in their first post-MBA job, compared with Harvard at 89.5%; Wharton 85.7%; Stanford 78.8%; Kellogg 88.5%; Duke 90.5%; Cornell 94.3%; Michigan 99.1%; MIT 90.8% and Virginia 96.8%. Read more »
  • THE TIMES OF INDIA. When you take all the MBA rankings collectively “the four top places continue to be dominated by Harvard Business School, Chicago Booth, Stanford and Wharton,” according to a December 17 article headlined “Who is the best of all?” Read more »
  • BLOOMBERG BUSINESSWEEK. Booth was featured in an article headlined “MBA Job Picture Bright for International Students,” published December 14. More than 95 percent of international students who graduated from Booth in 2012 accepted a job offer within three months of graduation, the article said. At Stanford, the only other top 10 school cited in the article, the figure was 91 percent. Read more »
  • BLOOMBERG BUSINESSWEEK.   Dane Skillrud, MBA ’13, wrote about his daily life at Booth in an online slideshow.  “Each class at Booth emphasizes study groups, even those that require individual assignments and tests,” he wrote.   “Booth emphasizes that students learn by asking questions and challenging others.” Watch the slideshow »

Section 2:  News coverage of Booth Faculty.

  • THE WALL STREET JOURNAL.  Research by Deputy Dean Steven Davis and Professors Lubos Pastor and Pietro Veronesi was cited in the Capital column titled “Trying to Calculate the Cost of Uncertainty,” published December 5.  Professor Davis and two co-authors at Stanford have developed a way to measure economic-policy uncertainty (http://www.policyuncertainty.com ») which they link to the vigor of the economy, the article said.  Separately, Professors Pastor and Veronesi examined why pronouncements by officials in Greece – whose economy is smaller than Michigan’s – move global stock markets so much. Read article »
  • BARRON’S.  Research by Deputy Dean Steven Davis was featured in an article looking at the investment outlook for 2013.   An index measuring economic-policy uncertainty developed by Professor Davis and his coauthors (see item above), jumped in November 2012 toward its highest level in 27 years, the December 15 article noted. Read article »

    Forbes also cited Professor Davis’s work December 19 in an article headlined “Contrarian Buy Signals.” Read article »

  • THE NEW YORK TIMES.  Professor Randall Kroszner published an op-ed titled “The New Tell-All Fed,” January 3.  “Under Mr. Bernanke, lips have loosened rapidly with quarterly news conferences, forecasts by F.O.M.C. members of key economic indicators, countless testimonies before Congress and, now, explicit adoption of a 2 percent inflation goal,” he wrote.  “The advantage of such glasnost is that it can give the Fed greater bang for its buck.  Buying more government bonds may bring down interest rates today, but getting people to believe that the Fed will continue such ‘accommodative’ policies adds to the potency of its actions.”   Professor Kroszner was a governor of the Federal Reserve from 2006 to 2009. Read article »
  • THE WALL STREET JOURNAL.  Professors Gary Becker and Kevin Murphy published an op-ed titled “Have We Lost the War on Drug?” January 4.  “After more than four decades of a failed experiment, the human cost has become too high,” they wrote.  “It is time to consider the decriminalization of drugs use and the drug market.” Read article »
  • THE ECONOMIST.  Research by Professor Marianne Bertrand and Associate Professor Emir Kamenica was featured in an article headlined “When women dare to outearn men,” published December 18.    “Of the many glass ceilings constraining women’s careers, one is particularly important yet often overlooked: the wage of the husband,” the article said.  “In a new paper, Marianne Bertrand, Emir Kamenica (both University of Chicago) and Jessica Pan (National University of Singapore) show how thick this ceiling really is.” Read article »
  • THE WALL STREET JOURNAL.  Research by Associate Professor Adair Morse and Assistant Professor Margarita Tsoutsoura was featured in a commentary titled “Greece Can Grow Again,” published December 12.  The column cited their study showing that tax evasion cost the Greek state 28 billion euros in 2009 alone. Read article »
  • THE WALL STREET JOURNAL.  Professor Douglas Skinner was quoted in an article about whether a so-called material disclosure posted on Facebook by Netflix CEO Reed Hastings was sufficiently public.  Netflix should have released the information in another forum concurrently, Professor Skinner said, but the Facebook posting raises questions about the reliability of the information.  “If something comes out on a press release, it’s pretty clear to people the information has been vetted and has some reliability to it,” he said in the December 7 article.  “When someone throws something out there in an offhand way (on  Facebook), it’s a little unclear how one should take that information,” Professor Skinner said. Read article »
  • FOX BUSINESS TELEVISION.  Professor Randall Kroszner discussed the economic consequences of the uncertainties of the fiscal cliff negotiations during an interview broadcast December 20.  If the situation isn’t resolved in the right way, “it won’t get the economy moving,” he said. Watch video »
  • CNBC.  Professor Austan Goolsbee said he doesn’t think the fiscal cliff will be resolved until after January 1.   “We have a fiscal bungee jump as a strategy now,” he said, meaning we will jump off the fiscal cliff with the hope of quickly bouncing back.    He made his comments during an interview broadcast December 21. Watch video »
  • CNBC.  Professor Austan Goolsbee said he believes the December 31 deadline for resolving the fiscal cliff will come and go without an agreement.  He made his comments during an interview on December 31. Watch video »
  • CNN.COM.  Professor Nicholas Epley’s research on gift giving was featured in an article headlined “What the brain wants for Christmas,” published December 21.   His research shows that your intuitions about how much  “it’s the thought that counts” are probably misguided, the article said.   If you’re trying to give a gift that will make someone happy, something they’ll really feel grateful for, “get them what they want,” Professor Epley said. Read article »

    Professor Epley discussed his research during a broadcast on WNYC Radio in New York City on December 25. Listen to broadcast »
  • THE WALL STREET JOURNAL.  Adjunct Professor Terrence Belton was quoted in an article looking at the year-end review of credit markets, published January 2.  Ultralow interest rates continued to force some investors to look for higher yields by getting into riskier assets such as corporate bonds and taking on more leverage.  “Those are the typical signs of a late-stage bull market,” Professor Belton said.  Read article »
  • THE NATIONAL (Abu Dhabi).  Professor Raghuram Rajan published an op-ed titled “Time to move beyond blaming the bankers” December 24.  “Few areas of economic activity in the United States are more politicized than housing finance,” he wrote.  “Yet the intellectual left has gone to great lengths to absolve regulators, government lending mandates, and agencies like Fannie Mae and Freddie Mac of any responsibility for the housing boom and the subsequent bust.” Read article »
  • PROJECT SYNDICATE.  Professor Luigi Zingales published an op-ed titled “Pulling the OMT Trigger,” November 30.  “Europe has been experiencing a period of calm after the storm since European Central Bank President Mario Draghi’s ‘whatever it takes’ speech in July and the ECB’s decision in September to proceed with its ‘outright monetary transaction’ (OMT) program to purchase distressed Eurozone members’ government bonds,” he wrote.  “But it would be foolish to conclude that the euro’s problems have been solved.” Read article »
  • SLATE.  Associate Professor Emily Oster published a commentary titled “Why Does Doctor Barbie Cost Twice as Much as Magician Barbie?” December 11.  “Mattel makes a line of ‘I Can Be’ Barbies, in which Barbie takes on various jobs (nurse, president, Olympian, etc.).  Other than the details of their clothes and accessories, the ‘I Can Be’ Barbies appear to be identical,” she wrote.  “Yet on Amazon, at least, they are sold for very different prices … People are often willing to pay different prices for the same product, either because they have more money to spare, or because they really like the product more.”   The Barbie Paradox was formulated by Assistant Professor Matthew Notowidigdo when he was looking to illustrate a particular pricing phenomenon for his class, Professor Oster wrote. Read article »
  • HARVARD BUSINESS REVIEW.  Professor Richard Thaler co-authored an article titled “Smarter Information, Smarter Consumers,” in the January-February issue.  “Changes in technology and disclosure rules will help shoppers make better decisions,” he wrote.  “Get ready for the rise of the ‘choice engine’ … If ‘choice engines’ succeed, consumers will be able to search for credit cards, cell phone plans, or even mortgages as easily and effectively as they search today for airplane tickets.”   The article, co-written with Will Tucker of ideas42, was featured as the “Big Idea” article in the issue. Read article »
  • ASSOCIATED PRESS.  Professor Steven Kaplan and Clinical Professor James Schrager were quoted in an article headlined “5 issues small businesses face in 2013,” published December 26.    Onshoring is expected to gain speed in 2013, the article said.  That’s the term for manufacturing that had been done overseas, and that’s now taking place back in U.S. factories.   As China becomes more of a middle-class country, wages for its workers are rising, and that is lessening some of the appeal of manufacturing there for U.S. companies, Professor Kaplan said.  “Manufacturing in the U.S. is relatively more attractive than it has been in 20 years,” he said.     Meanwhile, Professor Schrager said don’t look for the small business lending climate to get easier in 2013.  The problem isn’t just that banks are cautious about small business loans.  Home equity loans, a traditional source of money for people starting or expanding a business, remain difficult to get, Professor Schrager said. Read article »
  • CNBC.  Professor Austan Goolsbee said in order for the economy to improve, the growth rate must increase.   He made his comments on Closing Bell, December 7. Watch video »
  • WTTW-TV (Chicago).  Professor John Cochrane gave his opinion of the deal to resolve the fiscal cliff during an interview broadcast January 2.  “It kicks the can down the road about five feet,” he said.    “Are we going to cut spending substantially?   Are we going to massively raise taxes to European levels?  Are we going to reform entitlements?   Are we going to reform the tax code?  And how are we going to get this economy growing again?  Those big questions remain and we will be fighting about them for a long time,” he said.   Appearing with Professor Cochrane was Carl Tannenbaum, MBA ‘ 84, chief economist at Northern Trust. Watch video »
  • ASSOCIATED PRESS.  Clinical Professor Scott Meadow was quoted in an article headlined “Fiscal cliff deal answers tax questions for small business owners, but more issues remain,” published January 2.    Compounding small business owners’ concerns are the weakness in the economy and the government’s inability to come up with solutions to its budget problems, Professor Meadow said.  “All of those things are kind of the foundation of this anxiety that’s out there – when is the sword going to fall, what is the effect going to be,” he said.  “It’s that anxiety that causes (a small business owner) to slow down.” Read article »
  • CNN.COM.  Professor Erik Hurst was one of the experts quoted in an article headlined “Forget discouraged, 3 million workers hopelessly unemployed,” posted January 4.  Call them “super discouraged workers,” Professor Hurst said of the 3.3 million unemployed who wanted a job but haven’t searched in at least a year. Read article »
  • NATIONAL PUBLIC RADIO.  Professor Randall Kroszner appeared on All Things Considered and discussed the latest Federal Reserve statement saying the Fed will keep interest rates low until the unemployment rate falls to 6.5 percent.  “The Fed is doing this because it hopes that this can speed the reduction in the unemployment rate,” he said during the December 12 broadcast.  Professor Kroszner was a Fed governor from 2006 to 2009. Listen to broadcast »
  • THE SUNDAY INDEPENDENT (Ireland).  Research by Professor Nicholas Epley on gift giving was featured in an article headlined “It’s the thought that counts?  Think again,” December 9.  “The common wisdom is that the receiver values the amount of time you spent thinking about the gift, trying to get it right,” he said.  “This is a mistaken assumption.” Read article »
  • BLOOMBERG TELEVISION.  Professor Tobias Moskowitz discussed investment strategy and maximizing returns during an interview December 7 on Bloomberg’s Market Makers program. Watch video »
  • FOREIGN AFFAIRS MAGAZINE.  The latest book by Professor Luigi Zingales is “an important and engaging look at some of the most consequential issues facing the United States today,” according to a review in the January/February issue.   In “A Capitalism for the People: Recapturing the Lost Genius of American Prosperity,” Professor Zingales “argues that pro-market populism can help fuel economic recovery in the United States and calls for policies that would foster a sense of fairness and bolster public support for capitalism and free markets,” the review said. Read article »
  • ECONOMIC TIMES OF INDIA.  A feature article about Professor Raghuram Rajan was published January 2, headlined “Why 2013 will be a crucial year for chief economic advisor Raghuram Rajan.”   This year “is when he will be watched to see how he manages to shape fiscal and financial policies,” the article said. Read article »
  • LA REPUBBLICA GREEN REPORT (Italy).  Research by Assistant Professor Anuj Shah on how scarcity affects decision-making was featured in an article published December 5.  The work by Professor Shah and his co-authors takes a novel approach to understanding why low-income individuals might act against their own financial self-interest: over-borrowing at high interest rates in order to satisfy today’s needs, even though this makes meeting future expenses more difficult. Read article in Italian » Read a news release about the research »
  • CHICAGO TRIBUNE.  Professor Randall Kroszner was featured in an article headlined “Hiring looks a little brighter in Illinois,” published December 31.   “It’s going to be a sideways slide,” he said.  “We’ll continue to have some private-sector job growth, but not enough to dent unemployment.” Read article »
  • HUFFINGTON POST U.K.   Research by Assistant Professor Wilhelm Hofmann was featured in an article headlined “The Psychology of Desire Reveals How to Achieve Any New Year’s Resolution,” published December 31.  Professor Hofmann and his co-authors found personality was a key aspect of desire and resistance, the article said.  Certain personality features were associated with greater weakness when it came to resistance. Read article »
  • THE DAILY BEAST.COM.  Professor Jean-Pierre Dube was featured in an article headlined “The Future of Shopping; Get set for luxury to win the battle for the brick-and-mortar marketplace,” December 3.   To combat the Internet threat, mass retailers need to take themselves upmarket, into a higher-service, higher-price niche, where they can focus on providing the expertise and tactile experience that the Internet can’t match, Professor Dube said.  Read article »
  • NATIONAL PUBLIC RADIO.  Deputy Dean Steven Davis was one of the experts featured in an article titled “Why a ‘Fiscal Cliff’ Failure Could Help the Economy,” published on NPR’s website December 7.  “If we go over the fiscal cliff, I don’t think anyone really believes we’ve settled our imbalances,” he said.  “There are fundamental differences about the extent to which we should cut spending growth or tax burdens.” Read article »
  • THE AUSTRALIAN (Sydney).  Professor John Cochrane was quoted in an article headlined “Ups and downs of falling off cliff,” published December 28.    Regardless of the outcome in Congress, the chronic budget shortfall will remain, he said.  “This isn’t a cliff, it’s a molehill.  The main question Americans need to face is: will we pay for a European entitlement state with European taxes – 30 percent payroll, much higher income taxes and a 20 percent VAT?” Read article »
  • WBBM RADIO (Chicago).  Professor Randall Kroszner discussed U.S. economic conditions during an interview broadcast December 12.  He expects a small increase in economic growth during 2013 and a gradual decline in the unemployment rate.  His portion of the interview begins about 3:30 into the broadcast linked below. Listen to broadcast »
  • WBEZ RADIO (Chicago).   Professor Randall Kroszner discussed the outlook for the economy in 2013 during a broadcast that aired December 28.   It’s hard to have a strong overall recovery without  one in housing, he said. Listen to broadcast »
  • CRAIN’S CHICAGO BUSINESS.  Clinical Professor James Schrager was quoted in an article headlined “Walgreen returns to hospice care,” published December 15.  “They learned a good lesson (from their previous long-term care business), and from that time forward they’ve been searching for another, smarter way to get back into that business,” he said. Read article »
  • REUTERS.  Professor Randall Kroszner was quoted in an article headlined “2013 rings in more dovish Fed and maybe some dissent,” published December 11.  “To make credible long-run programs, (Federal Reserve Chairman Ben Bernanke) wants a broader consensus, not just the voting members,” Professor Kroszner said. Read article »

Section 3: Booth students and alumni in the news

  • FORBES.  Allison Hannon, a student in the Evening MBA Program, was named one of the magazine’s “30 Under 30” in the energy sector.  She is co-founder of Root3 Technologies “where she develops software that taps Big Data to help municipalities, universities, schools and  hospitals ratchet up the energy efficiency of their onsite power plants,” Forbes said. Read article »
  • THE WALL STREET JOURNAL.  Bart Becht, MBA ’82, was featured in an article headlined “Trio Builds Consumer-Goods Empire,” published December 24.   Becht and two partners manage the money of one of Germany’s wealthiest families.   Its assets total more than $10 billion, but rather than stick the funds in stocks, bonds or real-estate, Becht and his partners buy consumer-goods and fashion companies, the article said. Read article »
  • BLOOMBERG BUSINESSWEEK.   Neal Nisargand, MBA ’14, published an MBA Journal article December 3.   “When I looked at schools, I knew that I wanted a rigorous MBA program that would give me instant credibility like my engineer background had,” he wrote.  “I believe that a Booth education will refine my analytical skill set while introducing me to other students with a passion for both technology and business.” Read article »
  • NBC CHICAGO.COM.   Rachel Provest, MBA ’12 (AXP-11) was featured in a Q&A interview about her start-up, Nanny App.   “We’re dipping our toes into the iPhone app market,” he said.  “We started with what’s effectively a reference guide for expecting mothers and new parents … We basically are trying to create a real-life Mary Poppins in the palm of your hand, is what we’re calling it.”   The article was posted December 10. Read article »
  • FINANCIAL TIMES.  Bernard Yeung, Ph.D. ’84, was profiled in the Meet the Dean column December 19.  He is dean of the business school at National University of Singapore.  “You walk into a place like Chicago and you can feel the intellectual intensity,” he said.  “It is beginning to feel like that here.” Read article »
  • CNBC.  Mark Kiesel, MBA ’96, was named the fixed income fund manager of the year for 2012 by Morningstar, according to a report broadcast January 3.  He is a managing director at PIMCO. Watch video »