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Booth in the News; Spring 2012, Vol. 2

(Covering March 26 to April 16, 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.

  • CRAIN'S CHICAGO BUSINESS. "Entrepreneurial education is the hottest topic in business schools today – and the University of Chicago's Booth School of Business is at the head of the class locally," according to an article published April 7. "Since 1996, Booth has helped launch more than 75 companies, which have received a collective $235 million in venture funding." 
    Read article
  • THE TIMES OF LONDON. Booth was featured in an article about the improving job market for new MBA graduates. "The number of first-year students with internship offers and the number of second-year students with full-time job offers is higher than it has been in at least six years," said Deputy Dean Stacey Kole. "The job market is looking great," she said in the article published March 28.
  • CRAIN'S CHICAGO BUSINESS. A new partnership between Booth's Kilts Center for Marketing and Nielsen Holdings N.V. was announced in an article published April 12. Through the arrangement, Booth "is becoming a repository and disseminator of years of consumer marketing data," the article said. "Getting access to such broad insight into buying habits will give academics, and ultimately consumer products manufacturers, better information on how to market and price items." 
    Read article
    A similar article was published in Drug Store News April 12. 
    Read article
  • FINANCIAL TIMES. Booth was featured in an article about new financial disclosure requirements for faculty adopted by some business schools. Booth recently introduced a policy whereby faculty must disclose within a publication that they have been paid for it, the article said. "Our initial thought was that most faculty were good enough scholars that we wouldn't need to tell them what to do," said Professor Douglas Diamond. "But given that people at other schools had done some things that we thought it would be obvious they shouldn't do, we came up with some bright line (guidelines) that everyone needs to do." The article was published April 2. 
    Read article
  • TODAY'S CHICAGO WOMAN. The flexible curriculum at Booth is one of the features that sets it apart from other schools, according to an article in the April issue headlined "The MBA Advantage." Second-year students Donna Wu and Sonalee Jayaprakash were quoted, along with Joanne Legler, associate director of admissions. 
    Read article

Section 2: News coverage quoting Chicago Booth faculty.

  • THE NEW YORK TIMES. Professor Richard Thaler published an op-ed titled "Why Gas Prices Are Out of Any President's Control," March 31. "Oil is a global market in which America is a big consumer but a small supplier," he wrote. "That means we are, in economics jargon, 'price takers.' Domestic production has increased during the Obama administration, but it has had minimal effects on global prices because, as producers, we are just too small to matter much. And even if domestic oil companies further increased production, they would sell to the highest global bidder." 
    Read article
  • THE WALL STREET JOURNAL. Professor Austan Goolsbee published an op-ed titled "There's Too Much Crude in the Strategic Petroleum Reserve," April 11. "Are taxpayers really getting $20 billion worth of value from having an extra 25 days of oil sitting in a Louisiana salt mine?" he wrote. "Yet despite the decreasing strategic need, we have filled the Strategic Petroleum Reserve to historic levels." 
    Read article
  • THE WALL STREET JOURNAL. Professor John Cochrane published an op-ed titled "What to Do on the Day After ObamaCare," April 2. "The president's lawyer said 'Insurance has become the predominant means of paying for health care in this county.' But whose fault is that? Shouldn't we bring the cash market back?" Professor Cochrane wrote. "A deregulated health-care and health-insurance market can work." He discussed his ideas for health insurance reform on WGN Radio, Chicago, April 4. 
    Read article
  • CNN.COM. Professor Raghuram Rajan published an op-ed titled "The Trouble with Libertarian Paternalism," April 12. "The problem is that the semblance of choice in libertarian paternalism is an illusion," he wrote. "Choice remains unexercised, because individuals do not consciously think through their decision." 
    Read article
  • BLOOMBERG NEWS. Professor Douglas Skinner published an op-ed headlined "Why U.S. Companies Continue to Pay Dividends," April 11. "First, some argue that dividends provide important 'signals' about the strength or quality of the firm's underlying earnings stream," he wrote. "Second, dividends help discipline managers' tendency to squander their firms' cash on wasteful or unproductive projects or acquisitions. Third, it could be that companies are catering to certain investors, who have a strong preference for dividends over capital gains." 
    Read article
  • BLOOMBERG NEWS. Deputy Dean Robert Gertner published an op-ed titled "Consumer Protection Bureau Can Teach Financial Self-Help," March 28. Now that the Consumer Financial Protection Bureau is in place and rolling out programs, "it is a good time to think about how government intervention can improve outcomes in the financial products consumers buy," he wrote. 
    Read article
  • BLOOMBERG NEWS. Professor Luigi Zingales published an op-ed titled "End Double Mandate to Save Fed's Independence," April 5. The Federal Reserve has two legislated goals, he noted: promoting full employment and promoting stable prices. "This gives the Fed too much flexibility, pushing it to substitute for the government in designing economic policy," Professor Zingales wrote. 
    Read article
  • THE NEW YORK TIMES. Professor Amir Sufi's research on housing formed the basis of a front page article April 2 headlined "Where Housing Once Boomed, Recovery Lags." Jobs that depend on local spending, in restaurants and retail stores, were eliminated in larger numbers in high-debt areas, the article said. And the latest available data suggests that those jobs are returning more slowly, too. "Typically where the recession hits hardest the comeback is more vibrant," Professor Sufi said. "We're not seeing that this time around." The article noted that Professor Sufi was the author of several research papers on this topic. 
    Read article
  • THE ECONOMIST. Professor Richard Thaler's research on behavioral economics and his book Nudge were featured in an article titled "Nudge nudge, think think" published March 24. "Freakonomics was the book that made the public believe the dismal science has something interesting to say about how people act in the real world. But Nudge was the one that got policy wonks excited," the article said. Professor Thaler has been advising policymakers in several countries including Denmark, France and the UK, where David Cameron has established a Behavioral Insights Team, nicknamed the Nudge Unit, the article said. 
    Read article
  • CNBC. Professor Austan Goolsbee said President Obama's proposal to raise taxes on the top 1 percent of households would actually bolster the economy. "The tax rates paid by people are the lowest in 65 years," he said during an appearance on The Kudlow Report April 10. "The top capital gains rate is the lowest it's been in decades. Where is the evidence that this has been working?" 
    Watch video
  • THE NEW YORK TIMES. Banking research by Associate Professor Amit Seru was featured in an article headlined "Small Banks Shift Charters To Avoid U.S. As Regulator," published April 3. Professor Seru found that state regulators consistently went easier on banks than their federal counterparts, the article said. 
    Read article
  • THE NEW YORK TIMES. Professor Ray Ball was quoted in an article about the unexpected restatement of earnings at Groupon. The action is not necessarily a major concern, given its small effect on revenue and earnings, he said. "They have to incur some costs here, but this is a standard start-up problem. And they are pioneering a business model. No one has done this before." The article was published March 30. 
    Read article
  • FINANCIAL TIMES. A review of the new book by Professor Luigi Zingales, "A Capitalism for the People," was published April 16. For Professor Zingales, "the genius of capitalism lies in competition," the review said. "So he would like to build a populist political agenda that reflects support for free markets and distrust of government and big business. The book is "a stimulating essay on the nature of American capitalism and the issues that will determine the pace of America's relative decline," the review said. 
    Read article
  • THE ECONOMIST. The American finance editor of the magazine came to campus April 3 and interviewed Professors John Cochrane, Steven Kaplan, Lubos Pastor, Robert Vishny and Luigi Zingales.
  • REUTERS. Deputy Dean Steven Davis was quoted in an article headlined "How low can U.S. jobless rate really fall?" published April 9. "We're living through a juncture in U.S. policy history in which we're making decisions about what type of society we're likely to be," he said. "Those decisions will affect things for a generation." 
    Read article
  • CAIJING MAGAZINE (China). Professor Randall Kroszner talked about the changing role of the World Bank in an article published April 9. "The world has changed enormously since the World Bank was created at Bretton Woods," he said. "Private capital available and willing to flow into emerging markets is dramatically larger than in the first few decades after the World Bank's birth."
  • CNBC. Professor Austan Goolsbee discussed the political implications of the disappointing employment numbers announced April 6. Whether the economy will improve in the coming months depends on whether the growth rate picks up, he said. 
    Watch video
  • FOX BUSINESS. Professor Austan Goolsbee commented on the growing budget battle in Washington during an interview broadcast April 3. 
    Watch video
  • REUTERS. Professor Anil Kashyap published a commentary on Japan one year after the devastating earthquake and tsunami. 
    Read article in Japanese
  • THE NEW YORK TIMES. Research by Associate Professor Hoyt Bleakley was featured in an article about efforts in India to eliminate intestinal worms in children. Professor Bleakley found that before the disease was eradicated in the U.S., children who were infected with it earned 40 percent less income in adulthood. School attendance also rose substantially after deworming. The article, headlined "In India, a Small Pill, With Positive Side Effects," was published April 4. 
    Read article
  • BLOOMBERG BUSINESSWEEK. Professor Austan Goolsbee was quoted in an article headlined "Bernanke Warning on Jobs Vindicated by March Payrolls Report," published April 7. "Overall, we ought to focus our attention on the fact that we've got to keep the growth rate of the economy at a sufficient level that it generates jobs," Professor Goolsbee said. That probably means the economy has to grow faster than 2 percent, he said. 
    Read article
  • KCUR RADIO (Kansas City). Professor Tobias Moskowitz discussed his book "Scorecasting: The Hidden Influences Behind How Sports Are Played and Games Are Won," during an interview broadcast April 2. 
    Listen to broadcast
    Professor Moskowitz also discussed his sports research in the Sun-Sentinel, Fort Lauderdale, Florida, April 3. 
    Read article
  • BLOOMBERG NEWS. Professor Steven Kaplan was quoted in an article headlined "Coty Draws on Trott's Underdog Experience to Pursue Avon," published April 2. Byron Trott, the head of advisory and investment firm BDT Capital Partners, "has great relationships with a lot of families and with (Warren) Buffett and closely held businesses," Professor Kaplan said. Trott is a 1982 Booth graduate. 
    Read article
  • NATIONAL POST (Canada). Research by Assistant Professor Wilhelm Hofmann on the difficulties to control media desires was featured in an article headlined "Is Social Media harming Our Mental Health, Researchers Wonder?," published March 25. Coverage appeared earlier in the Vancouver Sun and other publications. 
    Read article
  • BLOOMBERG BUSINESSWEEK. Professor Steven Kaplan was quoted in an article headlined "Lazard's $35 million Fee for Medco May Be Its Biggest Since 2002," published April 2. "This is certainly a good one for Lazard," he said. "We weren't sure what the government was going to do on this and so there was clearly some risk involved in working on this deal." The Federal Trade Commission approved Medco Health Solution's $29 billion purchase of Express Scripts. 
    Read article
  • ENTREPRENEUR MAGAZINE. Research on private equity by Professor Steven Davis was featured in a column headlined "Private Equity and Entrepreneurs: Allies in Productivity," published March 27. Private equity firms improve productivity, in part, by replacing workers, the article said. Professor Davis's research showed that job creation and job destruction are 13 percent higher at companies acquired by private-equity firms than at other businesses. 
    Read article
  • BLOOMBERG NEWS. Research by Professor Jesse Shapiro was featured in a column headlined "End-of-Month Hunger Hurts Students on Food Stamps," published April 3. He found that caloric intake among food-stamp beneficiaries is 10 percent to 15 percent lower, on average, at the end of the month than at the beginning. 
    Read article
  • BLOOMBERG NEWS. Professor Anil Kashyap co-authored research on monetary policy earlier this year with Jeremy Stein, a nominee to the Federal Reserve Board of Governors, according to an article published March 26. Their research was titled "The Optimal Conduct of Monetary Policy with Interest on Reserves." 
    Read article
  • REUTERS. Professor Steven Kaplan was quoted in an article headlined "Bain eyes $6-$8 billion fund, toys with fees," published April 11. The firm is considering lowering the fee it charges to manage investor money while taking a bigger chunk of the profits from investments, also known as carried interest, betting that some investors would see that as better alignment of interests – Bain makes money when they make money, the article said. "This will put downward pressure on fees," said Professor Kaplan. "Investors are more happy to pay carry, which is incentive-based, than pay management fees." 
    Read article
  • SOFTWARE MAGAZINE. Assistant Professor Elizabeth Pontikes published a column titled "Social Media our Club – What's Best?" in the February issue. "How you categorize your company can lead to its success or demise," she wrote. "Misclassified companies risk being ignored by target customer and judged against wrong criteria." 
    Read article
  • CHICAGO TRIBUNE. Research by Adjunct Assistant Professor Saurabh Bhagava was featured in an article headlined "Cellphones and driving: As dangerous as we think?" published March 26. "Most people are convinced that using cellphones while driving is dangerous," he said. "What we find flies in the face of the prevalent viewpoint … Drivers are aware of the danger and drive more slowly or only use their cell in situations that are safe." 
    Read article
  • BLOOMBERG NEWS. Professor Emeritus Roman Weil was quoted in an article headlined "Hiding Volatility in Earnings Just Got Harder," published March 29. Starting with first quarter results, companies will have to show comprehensive income and its components at the bottom of the income statement, or right after in a separate table. "These clearly are changes in wealth," said Professor Weil. "Heretofore it has been buried in shareholder equity, which is incomprehensible to most people." 
    Read article
  • FIRST BUSINESS TELEVISION. Professor Luigi Zingales discussed his new book "A Capitalism for the People," during an interview broadcast April 3. The environment in which the free enterprise system operates in the U.S. is in trouble, he said. 
    Watch video

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

  • TULSA WORLD. Meredith Siegfried, MBA '07, was profiled in an article published April 1. She is CEO of NORDAM, one of the world's largest independently owned aerospace companies, with 2,500 employees in nine facilities on three continents. She graduated from Booth's Weekend MBA Program. 
    Read article
  • THE TIMES OF LONDON. Chris O'Connor, MBA '99 was featured in an article headlined "Graduates find small is beautiful; Big companies are not always the best way to earn big bucks," published March 28. He is CEO of Renew Solution, moving to the start-up after working for Deutsche Bank. "I discovered (at Renew) I needed all my MBA skills because in a small business you have so many roles," he said. "I never though what I learned about labor negotiation would be relevant but recently I hired 11 staff to launch our newspaper recycling pods in the City."
  • MARKETWATCH.COM. Jeffrey Warne, MBA '94 was named CEO of Perkins & Marie Callender's LLC, a restaurant company, according to a March 26 article. "Jeff is a strategic and seasoned executive with a strong financial acumen," said Joseph Deignan, chairman of the board. Previously Warne was president and CEO of O'Charley's Inc.