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Autumn 2012 Vol 2

Booth in the News; Autumn 2012, Vol. 2

(Covering September 26 to October 19, 2012)

Here are highlights of the latest 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 e-mail or by calling 773-702-9232.

Section 1: News coverage of Booth.

  • THE ECONOMIST. Booth is #1 in a ranking of the world’s best full-time M.B.A. programs published October 6. Booth is also the #1 school for “opening new career opportunities” for students, #1 in the diversity of recruiters and #1 in student assessment of career services. Last year Booth ranked second overall. “Despite its reputation as a finance powerhouse, and a churner-out of super-quants, (Booth’s #1 ranking) is proof that it is a well-rounded school,” the Economist wrote. Tuck, Darden, Harvard and Columbia were ranked 2 through 5.
    Read article

  • FINANCIAL TIMES. Booth’s executive M.B.A. program ranked 10th in a global ranking published October 15. Last year Booth ranked fifth. A joint program by Kellogg and Hong Kong University of Science and Technology ranked first this year followed by a joint program of Columbia Business School and London Business School.
    Read article

  • MINT (India). Deputy Dean Robert Gertner discussed Booth’s programs in executive education and social entrepreneurship during a video interview conducted by this leading daily newspaper. The video was posted October 4 during Professor Gertner’s trip to India.
    Watch Video
    A Q&A with Professor Gertner titled “Our 4-campus model fit for global era” was published October 10 in MBA Universe in India.
    Read article

  • BLOOMBERG BUSINESSWEEK. Booth was one of the schools featured in an article headlined “The B-School Twitter-Free Zone,” published October 11. The marketing faculty at most top business schools are not active on Twitter, the article said. “Just because I don’t use Twitter doesn’t mean that I don’t have discussions with my students about social media,” said Professor Pradeep Chintagunta. “Everyone recognizes the importance of social media, but it might not be the best use of my time as a professor. Students get more help from one-on-one time.”
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  • THE WALL STREET JOURNAL. Vanguard Group said it will move 16 U.S. funds with $367 billion in assets under management to benchmarks developed by Booth’s Center for Research in Security Prices, according to an article published October 2. Deputy Dean John Heaton and Professor Lubos Pastor serve as consultants to the CRSP index project. Vanguard is the largest U.S. mutual fund manager.
    Read article

Section 2: News coverage of Booth faculty.

  • THE NEW YORK TIMES. Professor Richard Thaler wrote the Economic View column titled “For the Wealthy, a 28 Percent Solution,” September 29. “I can state my idea in just one sentence,” he wrote. “All income above $1 million a year for a household will be taxed at 28 percent.” There are no deductions, and all income, including capital gains and dividends, is included, he said. “While we’re at it, let’s make the corporate tax rate 28 percent, too, because our current rate is high by international standards.”
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  • FINANCIAL TIMES. Professor Raghuram Rajan wrote an op-ed titled “Legitimacy rests on restoring opportunity,” published October 17. To restore the legitimacy of capitalism “industrial economies have to restore opportunity to the middle class, by improving education and creating the support structures that allow people to train for, obtain and keep good jobs,” he wrote. “They also have to explain why some government promises are more equal than others and show that not only plutocrats benefit.”
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  • THE JAPAN TIMES. Professor Luigi Zingales published an op-ed titled “The elitist pedigree of the euro ‘commitment,’” October 1. “For southern European countries, joining the euro was – explicitly or implicitly -- a way to force their citizens to accept a degree of fiscal discipline that they were incapable of adopting on their own,” he wrote. “But was this a democratic decision, or one that an ‘enlightened’ elite forced upon its unwitting citizens? I fear that the latter is true – hence the growing resentment against the European Union.”
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  • CRAIN’S CHICAGO BUINESS. Clinical Professor Ellen Rudnick wrote an op-ed titled “Celebrating Chicago’s entrepreneurial ecosystem,” October 4. “Here at the Booth School of Business and at the University of Chicago, we’ve seen a strong increase in entrepreneurial interest from our students,” she wrote. “Chicago offers a thriving entrepreneurial ecosystem, where access to resources and a collaborative and supportive culture will increase an entrepreneur’s chance for success. This simply was not the case just five years ago.”
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  • THE ECONOMIST. Professors Steven Kaplan and Luigi Zingales were featured in an article headlined “The rich and the rest: American inequality is a tale of two countries,” published October 13. Professor Zingales said the bonus culture on Wall Street is driven in part by an implicit subsidy banks enjoy through lower borrowing costs by being too big to fail. Professor Kaplan’s research found that the share of investment bankers among the top 0.1% is larger than the share of senior executives.
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  • THE NEW YORK TIMES. Professor Raghuram Rajan was featured in an article headlined “As Its Economy Sags, India Asks a Critic to Come Home and Help Out,” published October 5. “In April, the economist Raghuram G. Rajan gave a speech to a group of graduating Indian students in which he criticized the country’s policy makers for ‘repeating failed experiment after failed experiment,’ rather than learning from the experiences of other countries,” the article said. “A week later, he assailed the government again, this time in a speech attended by Prime Minister Manmohan Singh. But instead of drawing a rebuke from India’s often thin-skinned leaders, he got a job offer.” Professor Rajan is chief economic adviser in India’s Finance Ministry. He continues to be associated with Booth and is teaching this quarter.
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    A Q&A with Professor Rajan was posted on The New York Times website.
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  • BBC TELEVISION (London). Professor Richard Thaler discussed how his “nudge approach” to behavioral economics can lead people to become more successful. The 24-minute interview aired on the popular HARDtalk program October 9.
    Watch Video

  • THE WALL STREET JOURNAL. Research by Professor Amir Sufi on the economic impact of the Great Recession was cited in the Train Reading column October 16. He found that among poor and median households, the recession wiped out 20 years of net worth accumulation but for the rich there was only a small decline.
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    Professor Sufi’s research was also featured in The Atlantic, October 16.
    Read article

  • THE WALL STREET JOURNAL. Research by Assistant Professor Matthew Notowidigdo was featured in an article headlined “How Employers See Prolonged Joblessness (and Why),” published September 27.
    Read article
    The New York Times also published a story about Professor Notowidigdo’s research, September 27.
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  • THE NEW YORK TIMES. Professor Raghuram Rajan was quoted in an article headlined “Income Inequality May Take Toll on Growth,” published October 16. “Starting in the early 1970s, advanced economies found it increasingly difficult to grow,” he said. “The shortsighted political response to the anxieties of those falling behind was to ease their access to credit. Faced with little regulatory restraint, banks overdosed on risky loans.”
    Read article

  • FOX BUSINESS. Professor Anil Kashyap was quoted in an article headlined “Obama, Romney and Federal Reserve Independence,” published October 17. While Republican presidential candidate Mitt Romney has publicly thrown his support behind the idea of auditing the Fed, his campaign has not offered many details beyond that, the article said. “It is clear that some behind this movement, such as Congressman Paul, want much more than just transparency and accountability,” Professor Kashyap said.
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  • THE ATLANTIC. Research by Associate Professor Oleg Urminsky was featured in an article headlined “Obama Supporters and Romney Supporters May Not Actually Hate Each Other,” published October 9. “The research suggests a greater respect for one another’s views than generally assumed,” the article said. “The possibility that there’s mutual empathy could have practical impact on attempts to reach across the political aisle and getting things done.”
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  • FORBES. Professor Steven Kaplan was quoted in an article headlined “The Truth About Bain, Inside the House that Mitt Built,” published in the October 22 issue. Bain Capital was a pioneer in its approach to acquisitions “but other firms over time have copied that,” Professor Kaplan said. “The reason they were able to raise so much money in 2006, 2007, 2008 was because they performed so well in the past.”
    Read article

  • BLOOMBERG BUSINESSWEEK. Professor Luigi Zingales was quoted in an article about Facebook’s future as a public company. Facebook should have delayed its IPO after it cut its forecast, he said. “When you have a significant change in your forecasts its good business practice to postpone the IPO so that the market has more time to understand what’s going on,” Professor Zingales said in the October 10 article.
    Read article

  • CNBC. Professor Austan Goolsbee discussed the effect of the September jobs report on the 2012 election during an interview broadcast October 12. While the employment numbers are improving, they aren’t improving fast enough, he said. “They need to be a lot better.”
    Watch Video

  • FOX TELEVISION. Professor Austan Goolsbee gave his take on the second presidential debate during an appearance on the “On the Record” program October 16. The questions from the audience were good, but there wasn’t a lot of new information that came out of the debate, he said. During the interview Professor Goolsbee also talked about ways to lower gasoline prices.
    Watch Video
    Professor Goolsbee reviewed the vice presidential debate during an appearance on ABC-TV October 11.
    Watch Video

  • BLOOMBERG TELEVISION. Professor Luigi Zingales discussed Europe’s debt crisis, the U.S. economy and Federal Reserve policy during an appearance on “Surveillance,” broadcast October 3.
    Read article

  • NATIONAL PUBLIC RADIO (All Things Considered). Professor Austan Goolsbee explained the different strategies for job creation put forth by President Obama and Republican challenger Mitt Romney during a broadcast October 8.
    Listen to broadcast

  • NATIONAL PUBLIC RADIO. Professor Luigi Zingales offered his suggestions for reforming the U.S. tax code during an interview on Morning Edition October 18. The mortgage interest deduction is one tax break that he believes should be eliminated. “Because rich people receive a larger subsidy, the price of houses increases so much it actually makes it less affordable for the poorer people,” Professor Zingales said.
    Listen to broadcast

  • MARKETPLACE RADIO. Professor Pradeep Chintagunta was featured in a story about efforts by retailers to strike back against “showrooming” – when a customer browses for an item in a store, but then buys it online, often at a cheaper price. “It’s very critical for the retailer to have the customer actually walk into the store,” he said. “They can then come across other products in the store that they end up buying.” The story was broadcast October 15.
    Listen to broadcast

  • MARKETPLACE RADIO. Professor Randall Kroszner was featured in a story about bank earnings. “The SEC is concerned about banks holding too many reserves because they could potentially release those to do what is perceived as manipulating earnings,” he said in the story broadcast October 11.
    Listen to broadcast

  • THE NEW YORK TIMES. Research by Professor Luigi Zingales was cited in the popular Deal Professor column titled “Despite Its Problems, Dodd-Frank is Better Than the Alternatives,” published October 16. “Luigi Zingales writes in his provocative book ‘A Capitalism for the People’ that the Glass-Steagall Act, the Depression-era law that separated investment banking from commercial banking, was good because it led to competition among banks rather than allowing them to bond together to fight for their bigness,” the column said.
    Read article

  • U.S. NEWS & WORLD REPORT. Professor Pradeep Chintagunta was featured in an article about problems with Apple’s Maps app for iPhones. “I think that in the long run what they’re doing is probably better for customers,” Professor Chintagunta said. He pointed to the fact that Google did not want to provide iPhone users with some Google Maps features, like spoken directions, instead saving those goodies for Android phones. In creating its own app, he says, Apple was telling Google that it refused to subject its customers to an inferior version of Google Maps. The article was published September 28.
    Read article

  • INSTITUTIONAL INVESTOR. Professors Eugene Fama and Richard Thaler were cited in an article titled “Unlocking the Economy of the Mind,” published September 27. “Researchers are using new approaches and tools to reconcile the differences between neoclassical and behavioral finance,” the article said.
    Read article

  • PULSO (Santiago, Chile). Professor Anil Kashyap discussed conditions in the eurozone and related topics in a Q&A interview, published October 5.

  • NATIONAL JOURNAL. Separate research by Professor Raghuram Rajan and by Professor Marianne Bertrand and Associate Professor Adair Morse was featured in an article headlined “Inequality and Its Perils,” published September 27. “Cynical as it may seem, easy credit has been used as a palliative throughout history by governments that are unable to address the deeper anxieties of the middle class directly,” Professor Rajan wrote in his 2010 book, Fault Lines. That certainly seems to have happened in the years leading to the mortgage crisis, the article said. Professors Bertrand and Morse found that legislators who represent constituencies with higher inequality are more likely to support the easing of credit.
    Read article

Section 3: Booth students and alumni in the news.

  • FINANCIAL TIMES. Kobchai Chirathivat, MBA ’08 (AXP-7) was profiled in an article headlined “Family Fortunes,” published October 15. He is chief executive of Central Pattana Public Company, Thailand’s largest developer and operator of shopping centers. Booth’s EMBA program was “really tough” but “transformative,” he said. “Would I go through the whole thing again? It was difficult, but course I would do it all again, although if I could turn the clock back, I would do it much earlier.”
    Read article

  • BARRON’S. Gus Sauter, MBA ‘80, was profiled in an article headlined “A New Vanguard for Gus Sauter,” published October 6. He is managing director and chief investment officer at The Vanguard Group. “In 25 years at Vanguard, Sauter … took assets in the firm’s signature index funds from less than $10 billion to $1.1 trillion,” the article said.
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  • CHICAGO TRIBUNE. Oaktree Capital Management, a company co-founded by Howard Marks, MBA ’69, will have a controlling interest in Tribune Company when it emerges from Chapter 11 bankruptcy, according to an article published October 7. “It has some very good assets, and we think that through the purchase of the distressed debt, we were able to buy those assets at attractive prices,” Marks said. JPMorgan Chase and Gordon & Company will also have controlling interest in Tribune, publisher of the Chicago Tribune and Los Angeles Times, the article said.
    Read article

  • CRAIN’S CHICAGO BUSINESS. Bahar Wadia, MBA ’07 (XP-76), was featured in an article headlined “Riding the iPhone wave to the next big splash,” October 6. He is president and chief executive of UICO, one of the few Chicago-area tech companies that make hardware.
    Read article

  • PATRIMONI (Italy). Paola Maria Caburlotto, MBA ’11 (EXP-16) was featured in an article about the networking power of university alumni clubs. Patrimoni is the monthly magazine of Milano Finanza, a leading Italian newspaper.