Monthly Top Media Coverage for December 2016

U.S. Media

Zingales: Media Trashing Probably Helped Trump

Bloomberg - Dec 30, 2016

Chicago Booth School of Business Professor Luigi Zingales discusses the rise of populism. He speaks on "Bloomberg Surveillance."

Zingales: Italy Has to Stick to the Rules

Bloomberg - Dec 30, 2016

Chicago Booth School of Business Professor Luigi Zingales weighs in on a Banca Monte Paschi di Siena rescue. He speaks on "Bloomberg Surveillance."

What to Expect From Trump's First 100 Days

Bloomberg - Dec 30, 2016

University of Chicago Booth School of Business Professor Luigi Zingales discusses alleged Russia hacking and his outlook for President-Elect Donald Trump's first 100 days. Zingales speaks on "Bloomberg Surveillance."

Greene: Starting to See Some Impact of Brexit

Bloomberg - Dec 30, 2016

Manulife Asset Management Chief Economist Megan Greene and Chicago Booth School of Business Professor Luigi Zingales weigh in on Brexit. They speak on "Bloomberg Surveillance."

Study: Immediate Rewards Boost Success of Long-term Goals

WTTW/Chicago Tonight - Dec 28, 2016

“It’s very hard for people to persist in long-term goals,” said Ayelet Fishbach, one of the study’s authors and a professor at the University of Chicago Booth School of Business. “We know people like the immediate benefits or immediate rewards. This is why people give into temptation, because it gives them immediate pleasure.”

Little Improvements Crowd Out World-Changing Innovation

Bloomberg - Dec 21, 2016

The University of Chicago’s Luigi Zingales recently offered this explanation for the rise in corporate profits’ share of U.S. gross domestic product: "My hypothesis is that markups have increased because firms became better at creating product differentiation and erecting barriers to entry. In 1980 [Harvard Business School Professor] Michael Porter wrote “Competitive Strategy,” the ninth most influential book of the 20th century according to the Academy of Management. In this book, Porter explained how firms can create barriers to entry and obstacles to competition to increase their pricing power. The book became the primary textbook of all of the strategy courses taught in business schools and the gospel of the leading consulting firms."

Trump’s Deals May Unintentionally Damage the US Economy

Fortune - Dec 21, 2016

As the new Trump Administration seeks to deliver on promises of domestic growth, some of President-elect Trump’s controversial moves could undermine that goal as he has created uncertainties around U.S. economic policies...Increased economic policy uncertainty can harm macroeconomic performance, according to research I conducted at Northwestern University’s Kellogg School of Management, along with Nicholas Bloom of Stanford University and Steven J. Davis of the University of Chicago Booth School of Business.

This is 'the big lesson of 2016' for investors

MarketWatch - Dec 16, 2016

The commentary from money managers probably would be different right now if the stock market had followed its awful start to the year with even more awfulness. But it’s been another good year for the bulls, and Jim Kee, president and chief economist at South Texas Money Management. proceeds to blast the bears further in his note. Investors tend to overestimate the likelihood of a market crash, he said, citing a Chicago Booth Review article on recent research by Robert Shiller and other academics.

The Fed Raises Interest Rates

The Atlantic - Dec 14, 2016

“The Fed has not seen significant inflation pressure or wage pressure, and was concerned about the pace of economic growth. So they waited until the end of the year,” said Randall Kroszner, an economics professor at the University of Chicago Booth School of Business and a former Governor of the Federal Reserve System. “I think it would have probably been wiser to move a little bit earlier, but one quarter of a percentage point September vs December is not going to make or break the U.S. or the world economy.”

More Money, More Problems: India’s Fiscal Use Of Monetary Policy

Huffington Post - Dec 13, 2016

Professor at the Booth School of Business and former governor of the Indian central bank Raghuram Rajan was asked earlier this year if demonetisation was viable in combating illegal hoards of cash. His response was that “the clever find ways around it”, as those dealing in felonious money are often likely to split their plunder into smaller droves as to make it easier to launder.

Psychology of Decision-Making: How It Impacts Markets

Bloomberg - Dec 12, 2016

Richard Thaler, director of the center for decision research at the University of Chicago Booth School of Business, discusses voter sentiment on Donald Trump and its impact on markets. He speaks to Bloomberg's Scarlet Fu and Joe Weisenthal on "What'd You Miss?" (Source: Bloomberg)

The Perfect Gift? It’s the One They Asked For

The New York Times - Dec 12, 2016

Social scientists bear glad tidings for the holiday season. After extensively observing how people respond to gifts, they have advice for shoppers: You don’t have to try so hard...Above all, remember this: The thought usually doesn’t count. This counter-intuitive finding emerged from a clever series of experiments by University of Chicago researchers at the nearby Museum of Science and Industry.

Gifts That Santa, the World Traveler, Would Love

The New York Times - Dec 12, 2016

A newly published study conducted jointly by the Booth School of Business at the University of Chicago and Cornell University, found that recipients felt more grateful when thinking back on experiential gifts they received like travel, than when they recalled things like clothing or electronics.

Chicago Says Goodbye to Obama, Again

Chicago Magazine - Dec 12, 2016

Obama won’t likely be back, but many of his associates with Chicago roots have already returned. Austan Goolsbee--Obama’s former chairman of the Council of Economic Advisers teaches economics at the University of Chicago’s Booth School of Business.

The Art of Suggested Donation Amounts

The Wall Street Journal - Dec 11, 2016

How does the size of suggested donations affect charitable contributions? That’s the question researchers from the University of Chicago’s Booth School of Business set out to answer in a recent study. Associate professor of marketing Oleg Urminsky, a professor of marketing, and Indranil Goswami, then a doctoral candidate at Booth and now an assistant professor at the University at Buffalo’s School of Management, hoped to create a mathematical model to help nonprofits predict the most effective amount for suggested donations.

Trump mixes private deals with leading the nation

Newsweek - Dec 11, 2016

As The Washington Post reports, the company that owns Carrier separately owns other companies that do business with the federal government...This sort of arrangement is both unseemly and dangerous to prosperity in the long term. It creates incentives for other businesses to threaten to move in order to receive inducements to stay. As University of Chicago economist Luigi Zingales pointed out earlier this year in a column on Trump's cronyist instincts, it also muddles the distinction between pro-market and pro-business (Trump is the latter, not the former).

Is Trump the Godfather of trade?

CNN - Dec 8, 2016

In an op-ed, Luigi Zingales, professor of finance at Chicago Booth, writes "In the movie "The Godfather," Vito Corleone was not making deals, he was making offers people could not refuse. He was not giving orders either, he was giving suggestions that sounded like orders, because they were backed by unspeakable threats. Unfortunately, this behavior is not just a creation of Mario Puzo's imagination, nor is it limited to criminal organizations. In most countries without the rule of law, this is the way governments make economic policy. In the better ones, at least physical threats are spared, but it is simply because economic ones are more than sufficient. Donald Trump's new economic policy seems to follow this strategy."

Hyde Park Angels doubles deal total, ramps up content platform

Chicago Tribune - Dec 7, 2016

Hyde Park Angels is one of Chicago's best-known investment groups, but recent changes to its strategy have it making more deals than ever as it enters its 10th year...The group, which grew out of the University of Chicago's Booth School of Business in 2007, was always well-regarded, O'Hara said. But in recent years it has invested more in content and events, in organizing its roster of investors — many of whom are entrepreneurs or executives — into subject matter categories, and in recruiting investors with deeper pockets.

Here’s what it takes to be part of the 1%: Start out rich (and have rich friends)

MarketWatch - Dec 7, 2016

Elite higher education programs aren’t a ticket to wealth and success for everyone, the study found. Students who came to these programs from high-cost private schools were much more likely to reap the benefits of these programs, whereas for students from other backgrounds, the programs offered almost no benefit compared with what they might have done otherwise -- likely attend a similar program at a less prestigious school. “The types of programs that produce a disproportionate share of the very richest people are also the programs where there’s a much smaller return for people who aren’t from very wealthy backgrounds,” said Seth Zimmerman, an economics professor at the University of Chicago Booth School of Business and the author of the study.

Investors committing the “free dividends fallacy”?

CNBC - Dec 6, 2016

Samuel Hartzmark, assistant professor of finance at the University of Chicago’s Booth School of Business, says investors may be making some big mistakes when it comes to dividend stocks.

Michael Lewis's New Book Profiles Daniel Kahneman, Amos Tversky

Bloomberg/Yahoo Finance - Dec 6, 2016

The origin of the book is worth some amplification: a review of Lewis’ "Moneyball" in The New Republic by University of Chicago economist Richard Thaler and my Bloomberg View colleague Cass Sunstein gently took Lewis to task for failing to recognize the origins of the cognitive errors he described in the book. The kinds of mistakes made by the scouts and managers in "Moneyball" had already been thoroughly described by Tversky and Kahneman, who won the Nobel Prize in economics the year before Lewis' book was published.

Full Show: Surveillance (12/05)

Bloomberg - Dec 5, 2016

Bloomberg Surveillance hosted by Tom Keene and Francine Lacqua. Luigi Zingales, professor of finance at University of Chicago Booth School of Business, comments on Italy’s banking sector, Prime Minister Matteo Renzi’s resignation, and the Italian constitutional referendum. Video with Professor Zingales starts at 0:48:00. (Source: Bloomberg)

Surveillance: Europe, as a Construct, Is Failing, Bremmer Says

Bloomberg Radio - Dec 5, 2016

BMO’s Brian Belski and Eurasia Group’s Ian Bremmer discuss the future of Europe after the Italian referendum. Then, former IMF Chief Economist Olivier Blanchard says China’s power within the global supply chain could easily cripple the U.S. Also, Luigi Zingales, a professor at University of Chicago’s Booth School, says it’s the dawn of Donald Trump’s crony capitalist world. Audio starts at 23:20.

Zingales: Expect Some Intervention Plan for Italian Banks

Bloomberg - Dec 5, 2016

Luigi Zingales, professor of finance at University of Chicago Booth School of Business, describes what he sees as the worst case scenario for Italian banks. He speaks on "Bloomberg Surveillance." (Source: Bloomberg)

Zingales: ECB Taper Would Be a Problem for Italy

Bloomberg - Dec 5, 2016

Luigi Zingales, professor of finance at University of Chicago Booth School of Business, discusses the future of Italy's Democratic Party and explains why a move to taper by the European Central Bank would be a problem for both Italy and the Italian banks. He speaks on "Bloomberg Surveillance." (Source: Bloomberg)

Zingales: Italy's Vote a Flawed Reform, Not Populist

Bloomberg - Dec 5, 2016

Luigi Zingales, professor of finance at University of Chicago Booth School of Business, examines what the results of Italy's referendum vote means for the government and Italian banks. He speaks with Bloomberg's Francine Lacqua on "Bloomberg Surveillance." (Video edited to remove technical difficulty.) (Source: Bloomberg)

Keep Your Family Close and Your Roomba Closer

The New York Times/Freakonomics Radio - Dec 4, 2016

How lovable can a robot be? A study of Roomba owners by the Georgia Institute of Technology in 2009 found that at least a few people considered their appliances to be as close as family members. On this week’s episode of “Tell Me Something I Don’t Know,” you’ll learn about a beer recipe to bring on a desert island, some particularly uncomfortable sounds and a career that lacks female participation (besides the presidency). The panelists are: ...Austan Goolsbee, economist at the University of Chicago and former White House economist, who collects movie ticket stubs.

Is Trump a Berlusconi? Or more like Mussolini?

The Washington Post - Dec 4, 2016

In a New York Times op-ed that appeared just after the U.S. elections, University of Chicago business professor Luigi Zingales argued that Democrats should look at the strategy of the Italian center-left, which defeated Berlusconi by treating him as a normal politician, not engaging him on issues of character or ethics, and cooperating on policies of mutual interest.

Trump won in counties that lost jobs to China and Mexico.

The Washington Post - Dec 2, 2016

In an op-ed, Andrea Cerrato and Francesco Ruggieri, research professionals at the University of Chicago Booth School of Business, and their colleague Federico Maria Ferrara write "Many commentators view Trump’s victory and the rise of other anti-establishment parties in the Western world as a backlash against economic globalization. Indeed, Donald Trump campaigned heavily on claims that “U.S. jobs fled the country and headed to China and Mexico.”

November jobs report to convince the Fed?

CNBC/MSN - Dec 2, 2016

Discussing the November jobs report with Kevin Hassett, American Enterprise Institute; Austan Goolsbee, University of Chicago Booth School; and CNBC's Steve Liesman and Rick Santelli.

Austan Goolsbee: Going back to banking's bad old days is a 'terrible, terrible idea'

CNBC - Dec 1, 2016

Former Council of Economic Advisers chairman Austan Goolsbee told CNBC on Wednesday that it would be a "terrible, terrible idea" to gut banking regulations and go back to the days before the financial crisis.

Why lots of people think Trump’s deal to save 1,000 Indiana jobs was a bad idea

The Washington Post - Dec 1, 2016

Economists warned that Trump’s intervention — a departure from unofficial presidential protocol — could encourage companies to put lobbying and political favors for the new administration ahead of investment and innovation...“It favors people with connections rather than favoring the country as whole,” said Luigi Zingales, an economist at the University of Chicago. “Rather than the idea of draining the swamp, this is like flooding the swamp.”

Trump to the Rescue or Troubling Precedent?

U.S. News and World Report - Dec 1, 2016

Austan Goolsbee, an economics professor at the University of Chicago, offered a similar assessment Wednesday during an interview with Megyn Kelly, noting that "this is not what Donald Trump promised to do." "Donald Trump said he was going to go negotiate with Carrier. He was going to threaten them and get them to keep the jobs here," he said. While Goolsbee noted he was "thrilled for" the workers who were able to keep their jobs, he also said "what happened here was not a negotiation. He paid them to stay here."

The Kelly File 11/30/16 With Megyn Kelly

Fox News (YouTube) - Nov 30, 2016

Fox News Host Megan Kelly speaks with Austan Goolsbee of Chicago Booth and Congressman Sean Duffy on the Carrier jobs agreement (starts at 8:10 in video).

A company Trump attacked will receive state tax breaks to keep jobs in the U.S.

The Washington Post - Nov 30, 2016

Luigi Zingales, an economist at the University of Chicago, predicted that Trump’s economic policies would be “pro-business” rather than “pro-market,” offering favors to a few established firms but without encouraging competition and dynamism in ways that would improve the economy for everyone. “Donald Trump has always emphasized the fact that he’s good at deals,” Zingales said. “Doing deals like this is clearly favoring existing business, but is not creating a better market environment.”

International Media

Democracy, inclusion and prosperity

The Straits Times - Dec 31, 2016

In an op-ed, Raghuram Rajan, professor of finance at the University of Chicago Booth School of Business and former governor of the Reserve Bank of India, writes: It is a truism that people everywhere want to live in a safe, prosperous country where they enjoy freedom of thought and action, and can exercise the democratic right to choose their government. But the world faces a disarming question in 2017 and the years ahead: How can we be sure that political freedom and economic prosperity go together?

Randall S. Kroszner discusses Fed announcement with BBC

BBC - Dec 15, 2016

Chicago Booth's Randall S. Kroszner, a former governor of the Federal Reserve System, joins BBC Business Live to help break down the Fed's recent rate hike and projections for the future.

10 Tips To Make Your Flying Time Super Productive

The Huffington Post UK - Dec 12, 2016

Research has shown the considerable benefits to connecting with strangers, including an increased feeling of well being and a more positive journey experience with no loss in productivity. We humans are social creatures, not made for isolation. Nicholas Epley and Juliana Schroeder from the Booth School of Business in Chicago discovered that the average conversation was just 14 minutes long, so in that time you could have an increased sense of positivity from making a new connection and perhaps even a great new business contact.

The Undoing Project review – ‘psychology’s Lennon and McCartney

The Guardian - Dec 11, 2016

Michael Lewis’s landmark 2003 book Moneyball described the ways in which the Oakland Athletics baseball team had employed scientific data analysis rather than instinct and experience to mould a successful team. That strategy, unbeknown to Lewis, had its intellectual roots in papers written by Kahneman and Tversky 30 years earlier, but which were only then becoming mainstream thinking. Lewis’s omission was made clear in a review by Richard H Thaler, the Chicago professor and co-author of Nudge, who had done much to promote and extend the Israeli pair’s thinking.

Rajan speaks at IIMA, makes no mention of note ban

Press Trust of India/Economic Times/Indian Express/DNA India/Business Standard - Dec 8, 2016

Former RBI Governor Raghuram Rajan today addressed IIM Ahmedabad students on 'global economy, opportunities and challeges' but is believed to have steered clear of any India-specific issues, including demonetisation. The former IMF Chief Economist spoke on "The Global Economy: Opportunities and Challenges" at the Indian Institute of Management-Ahmedabad (IIMA). Rajan, now serving as the distinguished service professor of finance at the University of Chicago Booth School of Business, is an alumnus of IIMA.

What will make you feel grateful this season: Experiences

Livemint - Dec 4, 2016

Reprint of Chicago Booth Review article. Feeling grateful may be more a product of the experiences we have than the things we buy, according to research by Cornell University PhD candidate Jesse Walker, Chicago Booth postdoctoral fellow Amit Kumar, and Cornell University’s Thomas Gilovich.

Alumni

How An App From Southeast Asia Is Helping People Find Love Online

Forbes - Dec 19, 2016

As an MBA student at the University of Chicago, Paktor CEO and co-founder Joseph Phua learned the first-hand benefits of online dating. So when his family called him back to Singapore after graduation, a single Phua returned on a mission to launch an American-style mobile dating app on his home turf. His goal? Launch a successful app and maybe even find his wife.

Veteran angel investor launches fin-tech venture fund

Crain's Chicago Business - Dec 7, 2016

Longtime angel investor Jeff Carter has raised about $3 million of a planned $30 million venture fund to invest in financial-technology startups. Carter, 54, is a former options trader who co-founded Hyde Park Angels nearly a decade ago when he was getting his MBA at the University of Chicago's Booth School of Business. He's partnered with Kenny Estes, 32, a former coder in the trading industry, on a fund called West Loop Ventures.

What I learnt from my dad

Forbes India - Dec 6, 2016

Alumnus Luis Miranda writes, "By focusing on negativity, we create unhappy people with high blood pressure and a lot of frustration. Instead, as my dad taught me, if we focused on the good, we will have a happier and more pleasant place. This sense of optimism made me take the right (and at those times, strange) decisions to return to India straight after Chicago Booth, join a startup bank (now India’s largest bank by market cap), start an infrastructure private equity fund (which became India’s largest institutional alternatives platform) and move into the non-profit world."

U of C to invest $25 million in startups

Crain's Chicago - Dec 2, 2016

“It should send a very strong signal that says to our venture partners, innovators and entrepreneurs that we intend to make U of C the place to be if you want to start a company and create a success,” said John Flavin, an associate vice president at the university who heads the Polsky Center for Entrepreneurship and Innovation. “The engine we've been building around starting companies is strong,” he said, pointing to the New Venture Challenge, a business-plan competition started 20 years ago at U of C's Booth that counts among its alumni two of Chicago's most successful tech startups, Grubhub and Braintree.

Students

Why internships abroad matter

Livemint - Dec 25, 2016

In July, eight students from the master’s in business administration programme at The University of Chicago Booth School of Business, US, travelled to India for three weeks on internships...The students were given no stipend, but they say the internships were worth the time, the trouble and the expense.

India's Venture With Money: Watching Costs With Interest

Forbes - Dec 20, 2016

In an op-ed, Shohini Kundu, a doctoral student in finance at the University of Chicago Booth School of Business, wrote "When Prime Minister Narendra Modi announced a ban on the 500 rupee and 1,000 rupee notes to uproot corruption and “black money,” Indians across the subcontinent scrambled to queue up and exchange yesterday’s mainstay for future indemnity."