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Booth in the News; Spring 2013, Vol. 4

Covering April 29 to May 13, 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 e-mail or by calling 773.702.9232.

This summary contains three sections.

Section 1: News coverage of Booth.

  • BLOOMBERG BUSINESSWEEK. The art collection on display at Harper Center was featured in an article headlined "The Best-Kept Secret in the Chicago Art World Is a B-School," published May 3. "A well-known secret among Chicago's art lovers is that one of the best collections of contemporary art in the city is not at a museum," the article said. "It's at the University of Chicago Booth School of Business" where about 500 works from 85 artists are featured. "We want to use art to reinforce the education mission of the school," said Professor Canice Prendergast, one of five people who choose the works to purchase and bring into the building. "We're trying to get people to think." Read article
  • FINANCIAL TIMES. Harvard, Stanford and Booth were the top 3 U.S. schools in the newspaper's new ranking of non-degree executive education, published May 13. The top 10 schools in the ranking which combines open-enrollment programs and custom programs were: 1) HEC, 2) Iese, 3) IMD, 4) Esade, 5) Harvard, 6) Stanford, 7) Booth, 8) Center for Creative Leadership, 9) Thunderbird, 10) Insead. In last year's ranking, Booth was 11th. This year, participants in open enrollment programs ranked Booth #1 in course design, #1 in preparation, #2 in faculty and #2 in new skills and learning. Read article and view rankings
  • CNBC.COM. Booth’s New Venture Challenge was featured in an article headlined “Young Start-Ups Turn to Pitch Competitions as Launching Pads,” published May 10. Programs like the New Venture Challenge “really help the participant build their business and increase the likelihood that the business succeeds,” said Professor Steven Kaplan, founder of Booth’s NVC. “The connections and resources provided by the good ones (competitions) are tremendous,” he said. Read article
  • BLOOMBERG BUSINESSWEEK. Booth was featured in an article headlined “MBA Applications Surge at Top Schools,” published May 9. Applications for the September 2013 entering class at Booth increased 10 percent from a year earlier, the article said. Deputy Dean Stacey Kole said the bigger applicant pool will allow Booth to assemble a class of 575 that that she hopes will have more women and international students than it does now. The quality of the applicants has improved, she said. Read article

Section 2: News coverage of Booth faculty.

  • MINT (India). Professor Raghuram Rajan published an op-ed titled “Why India slowed,” April 30. “For a country as poor as India, growth should be what the U.S. calls a ‘no-brainer,’” he wrote, pointing to two reasons for the country’s economic slowdown. “First, India probably was not fully prepared for its rapid growth in the years before the global financial crisis,” Professor Rajan said. The second reason stems from the crisis itself. “As industrial countries, beset by sovereign debt, fiscal and banking problems, slowed once again, the fix for emerging markets turned out to be only temporary,” he wrote, referring to the injection of substantial amounts of monetary and fiscal stimulus. Professor Rajan is Chief Economic Adviser to India’s Finance Ministry. Read article
  • BOSTON GLOBE. Research by Professor Richard Thaler on the economics of the National Football League draft was featured in an article headlined “Belichick was right! Don’t be blinded by your love for a top pick, warn two researchers.” The research found that first-round draft picks are overvalued. “We had no idea of the magnitude,” Professor Thaler said in the May 5 article. “In fact, the magnitude of it is still kind of shocking.” Co-author of the study was Cade Massey, a 2003 Booth Ph.D. graduate now teaching at Wharton. They found that second-round NFL draft picks are, on average, 15 percent more valuable, on the dollar, than first-round selections, according to the article. Read article
  • THE WALL STREET JOURNAL. Research by Deputy Dean Steven Davis measuring policy uncertainty was termed “invaluable” in a column titled “Uncertainly is the Enemy of Recovery,” published April 28. The research conducted with two Stanford professors, shows that, on average, U.S. economic policy uncertainty has been 50% higher in the past two years than it has been since 1985, the article said. The column was written by Bill McNabb, chairman and CEO of Vanguard Group. Read article
  • THE WALL STREET JOURNAL. Clinical Professor James Schrager published a commentary as part of the newspaper’s series “What’s the Best Way to Test a New Business Idea?” published April 29. “A small-scale, real-world test is always the best way, and will be the No. 1 priority of many VCs when getting serious about an idea,” he wrote. “Think of how Zuckerberg tested ‘The Facebook’ in one evening at Harvard. It caught on like wildfire. A perfect, small-scale test.” Read article
  • THE WALL STREET JOURNAL. Clinical Professor Ellen Rudnick published a commentary for the section “How to Come Up With a Great Idea,” April 26. “It is important to look at an idea in two ways: first, to consider the initial inspiration for the business, and second, the often very difficult concept that ends up being executed to create the new company,” she wrote. “We typically think of these ideas as the thing that sets these great entrepreneurs on the path of success. However, an idea is only that until you do something with it.” Read article
  • CNN. Professor Austan Goolsbee said the April employment report which showed that 165,000 jobs were added was “solid,” but “you never want to make too much of any one month.” Unless the economic growth rate improves, the unemployment rate won’t come down fast enough, he said during an interview broadcast May 3. Appearing with Professor Goolsbee was Mohamed El-Erian, CEO of PIMCO. Watch video
  • BLOOMBERG TELEVISION. Professor Randall Kroszner discussed U.S. central bank monetary policy during an interview broadcast May 13. Professor Kroszner was a Federal Reserve governor from 2006 to 2009. Watch video
  • FINANCIAL TIMES. Professor Chad Syverson was quoted in an article headlined “Rust belt states of Midwest lead U.S. manufacturing revival,” published May 9. “The story (has for decades been) that manufacturing was leaving the U.S., but even within the U.S., , that it’s moving from the rust belt to the south,” Professor Syverson said. “But if you look at these states – it’s like the old guard is coming back.” He estimates that 123,000 of the half million net new manufacturing jobs gained since early 2010 are directly attributable to the recovery of the auto industry, boosted by a government bailout and renegotiated labor contracts between the industry and the United Automobile Workers Union, the article said. Read article
  • CNBC ASIA. Professor Randall Kroszner said the latest statement from the Federal Open Market Committee shows that the Federal Reserve is trying to end the debate over when it will taper off its bond purchases. He made his comments during an interview broadcast May 1. Watch video
    Professor Kroszner also discussed the latest statement from Fed Reserve on The Nightly Business Report May 1. Watch video
  • BLOOMBERG NEWS. Research by Professor Amir Sufi was featured in an article headlined “Diminished Housing Wealth Effect Keeps Pressure on Fed,” published May 5. The wealth effect from rising house prices “is much smaller” than it once was, Professor Sufi found. Each dollar increase in housing wealth may yield as little as an extra cent in spending, he estimates, compared with a 3-to-5-cent estimate by economists prior to the recession. Professor Sufi’s research also showed that homeowners with low credit scores were most prone to pulling money out of their properties during the housing boom. Read article
  • THE WALL STREET JOURNAL. Clinical Professor James Schrager contributed a commentary for a series “The Experts: How to Foster Young Entrepreneurs,” published May 2. “The problem is how to start with a job and end up with your own company,” he wrote. “That is not a regular or easy path. My inspiration was reading stories about real people who become successful entrepreneurs. Not Hollywood stuff, not TV shows, but thoughtful journalism. If we can provide young people a better understanding of the unlimited potential for them as entrepreneurs, I think we will see them discover the great job of running your own show.” Read article
  • BLOOMBERG RADIO. Professor Randall Kroszner discussed the U.S. economy and federal budget issues during an interview broadcast May 6. “We have an extreme imbalance between revenue and expenditure,” he said. “We have already raised taxes and we need to think very carefully about our expenditures.” Listen to broadcast
  • THE WALL STREET JOURNAL. Associate Professor Emily Oster’s latest “Ask Emily” column was published May 7. In it she answers readers’ questions about giving to the needy, deciding whether to live in New York or London, and how to encourage a spouse to lose weight. Read article
  • THE NEW YORK TIMES. Research by Professor Austan Goolsbee was featured in an article headlined “Measuring the Benefits of Tech Tools,” published April 30. Professor Goolsbee and a co-author estimated that the value consumers gained from the Internet amounted to about 2 percent of their income – an order of magnitude larger than what they spent to go online, the article said. Their trick was to measure not only how much money users spent on access but also how much of their leisure time they spent online, the Times wrote. Read article
  • NATIONAL PUBLC RADIO. Professor Richard Thaler was featured in a story titled “Automatic-Enrollment IRAs Get a Test Run in California,” broadcast May 1. “The only way most humans are able to save for retirement regularly is by having money taken out of their paycheck before they get a chance to spend it,” Professor Thaler said on the Morning Edition program. “That is old-fashioned wisdom that is still true.” Listen to broadcast
  • THE TIMES OF INDIA. Dean Kumar and Nitin Nohria, dean of Harvard Business School, were included in an article on Indian managers and academics who are “making their presence felt across the world,” published May 8. The article also cited Anshu Jain, co-CEO of Deutsche Bank and Indra Nooyi, chairman and CEO of PepsiCo.
  • THE WASHINGTON POST. Research by Professor Erik Hurst and Assistant Professor Matthew Notowidigdo was featured in an article headlined “Innovation: The jackpot for American manufacturers,” published April 30. They found that declines in manufacturing employment account for half of the increase in joblessness among men without college degrees over the past 10 years. The research was conducted with Professor Kerwin Kofi Charles of the Harris School of Public Policy Studies. Read article
  • SAN JOSE MERCURY NEWS (Calif.). Professor Robert Fogel’s book, “The Fourth Great Awakening and the Future of Egalitarianism” was cited in a column headlined “Spiritual Silicon Valley: Science doesn’t preclude a spiritual awakening,” published May 8. The fourth great awakening began in the 1970s, shapes politics today and “supports what Fogel calls immaterial or spiritual reforms,” the article said. Read article
  • WGN RADIO (Chicago). Clinical Professor Craig Wortmann gave advice on how to make meetings more effective during an interview broadcast May 4. It is important to state the purpose and the expected benefit at the beginning of each meeting, he said. Then get agreement on those two points from everyone around the table. Listen to broadcast

Section 3: Booth students and alumni in the news.

  • CRAIN’S CHICAGO BUSINESS. Stella Fayman, MBA’14, was featured in the “20 in their 20’s” article about tomorrow’s leaders. “The smart money is on these 20,” the newspaper wrote May 1. She was a founding member of FeeFighters, is a cofounder of Entrepreneurs Unplugged and has launched Matchist Inc. “Fayman has quickly become one of the most connected people on the local tech startup scene,” Crain’s said. “She’s also getting an MBA from the University of Chicago – and planning a wedding.” Read article
  • CNN.COM. Imran Ahmad, MBA’13, was featured in an article that chronicled his participation in the Rice Business Plan Competition at Rice University. Ahmad is co-founder of MouseHouse, a company that makes software to track lab animals. The article, published May 6, was headlined “The $1 million mouse hunt.” Read article
  • REUTERS. Jonathan Sokobin, MBA’88, Ph.D.’93, has been appointed the first chief economist of the Financial Industry Regulatory Authority, a Wall Street industry-funded watchdog group, according to an article published April 30. In his new role Sokobin will help develop new rules and analyze their potential costs and benefits to the industry and investors. He will also review existing rules. Earlier in his career he worked for the U.S. Treasury Department and the Securities and Exchange Commission. Read article
  • FORBES INDIA. Luis Miranda, MBA’89, published a commentary titled “Ramblings of an Accidental Investor,” May 8. “I believe that we have moved full circle and the time is back to do deals in infrastructure – backing passionate developers (if they still exist) who want to build world-class infrastructure,” he wrote. Miranda is chairman of the board of advisors at the Center for Civil Society and spent the last decade investing in India’s infrastructure. He started IDFC Private Equity in 2002. Read article