Stories related to "Conversations". http://www.chicagobooth.edu/magazine/fall-2017/rss


Why Is Productivity Stuck in Neutral?

When we talk about the global economy, we tend to turn to automotive metaphors. A recession brings things to a “screeching halt.” Boom times are said to be “in overdrive,” to have “found a higher gear.” And since the recession, one of the major components of the economy has been stuck in neutral. According to the Conference Board, productivity has barely budged since 2007, was flat in 2014 and 2015, and fell last year. We asked professor Chad Syverson, alumnus Matt Tracey, and Executive MBA student Crystal Lam to tell us why it’s stuck and what might kick it into gear. Chad Syverson, J. Baum Harris Professor of Economics, is the author of “Challenges to Mismeasurement Explanations for the US Productivity Slowdown,” published in the spring 2017 issue of the Journal of Economic Perspectives: Is productivity stuck in neutral? The short answer is yes. It’s been slow for the last decade—truly slow, not mismeasuredly slow or illusorily slow. The mismeasurement hypothesis says that although productivity has been slow since the mid-2000s, that isn’t real. The hypothesis argues that what’s actually going on is that our ability to measure economic growth has gotten worse. New things that people like and use a lot—Google, Facebook, Snapchat—are all free. We calculate GDP by adding up what people spend money on. Those things don’t show up because they’re free, so it looks like output per worker hour isn’t going up much. In my recent paper I asked, if that’s true, what else would it be true of? The patterns I found were consistent with an actual productivity slowdown rather than with mismeasurement.


On Exhibit

Besides being three of Chicago’s most iconic museums, the Shedd Aquarium, the Adler Planetarium, and the Museum of Science and Industry have something else in common: their CFOs are Chicago Booth alumnae. Joyce Simon, ’75; Marcia Heuser, ’87; and Rose Fealy, ’89, each spent at least part of their careers working at for-profit corporations before assuming their respective roles at the Shedd, the Adler, and the MSI. Chicago Booth Magazine brought the three women together to talk about the complexities of balancing the books at a world-class museum, the rewards of contributing to the mission of each organization, and how more women can join them in the C-suite.


Judgment Call

In many disciplines—financial accounting, for example—if you try to practice without any sort of formal education, you could very well end up in jail, says Jane L. Risen, professor of behavioral science. But when it comes to decision making, everybody is making personal and professional decisions all of the time without any formal guidance. Risen's class Managerial Decision Making is designed to provide that: a framework to actively recognize when decisions are likely to go wrong so that you can identify what you might be able to do to make them better.


Allies with Expertise

For Booth students, the annual Alumni Angel Awards are not just a celebration of alumni who go above and beyond in giving back to the school. They’re also an opportunity to strengthen the connections among Booth graduates and current students. “The Alumni Angel Awards reinspire alumni. They’re a way of saying, ‘Hey, here’s what your classmates are doing to help others. You should give it a try,’” said Trevor Gingras. He, along with fellow Full-Time MBA students Lexi Messmer and Jackie Yuh, is part of the Dean’s Student & Alumni Representatives group, which oversees the awards. And this year, there was no shortage of exemplary alumni to choose from.


A Solution for the Caring Economy

Most nights, Chelsea Sprayregen gets a good six or seven hours of sack time—no small feat for a woman juggling being a student at Booth and the CEO and cofounder of the promising startup Provide. “I don’t do anything else besides work,” Sprayregen said without a hint of regret. But, she said, “I can’t function without sleep.” On May 22, however, nerves would keep her tossing and turning all night. It was the eve of easily her most important professional moment, one that would help turn her dream into a reality: overhauling and simplifying how childcare business owners operate. The next day, along with her fellow Evening MBA students on the Provide team, Sprayregen would present to a room full of business-savvy judges (including several Booth alumni), as well as six other finalist teams competing to win the 2017 John Edwardson, ’72, Social New Venture Challenge. <br/>


The View From Tokyo

No matter your industry, the draw to live in Tokyo is readily apparent: ultramodern transport, a fast-paced yet family-friendly lifestyle, and so many great restaurants that residents can hardly agree on a top-10 list. Add in the active contemporary art scene, buzzing nightlife, and neighborhoods brimming with longstanding cultural traditions, and it’s clear why Tokyo’s population is nearing 14 million, and growing. <br/>More than 500 Booth alumni live in Japan, many of whom call this modern-meets-traditional metropolis home. Almost 20 percent of Booth’s tight-knit alumni here work in the banking industry, with other contingents in general management, consulting, and marketing. Those that work in Tokyo are increasingly focused on connecting with prospective students.