Faculty News

Professor Paul Romer discusses urban expansion in Colombia

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Excerpt from Portafolio -- "We tell officials in rapidly growing cities that they have to set aside now the public space in the area where the city is likely to expand. To stay ahead of rapid growth, the city needs to look far into the future. We encourage cities today to plan for the expansion that will take place between now and 2050 under a fast growth scenario. If the city is growing rapidly, this can require a plan that could accommodate a 10-fold increase in the city’s built area. The land can continue to be farmed until the expansion comes. If there is less growth and the city does not need all this land for urban expansion, there is virtually no cost to having planned for too much. In contrast, if a city does not plan for enough and it suffers from disorganized informal development, the cost is very high."
Faculty News

Professor Karen Brenner discusses the increasing demands of corporate board membership

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Excerpt from TheStreet.com -- "'Board service is becoming more and more demanding,' [Brenner] said. 'As a result, there's more of a tendency to specify limits on the other boards and other committees that directors can be on.'"
 
Faculty News

In an op-ed, Professor Thomas Philippon examines the financial crisis in the eurozone and shares recommendations for reform

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Excerpt from Vox -- "The interesting question is: What does it take to have a stable currency area? In my view, the traditional approach missed the most important piece –the banking union. Forget labour mobility, a common language, or even a federal budget.(1) A banking union is the one piece of financial architecture that should have been built before the crisis."
Faculty News

In an interview with Professor Daniel Altman, Professor Viral Acharya talks about his research on the impact of shadow banking on China’s financial markets

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Excerpt from Foreign Policy -- "But as the episode unfolds, you realize some things about the use of debt-fueled stimulus for the economy... It produces short-term gains by making investment and output seem stable but carries the long-term risk of a protracted slowdown... It seems each country needs its own crisis to learn the hard lesson. It must be that the underlying political imperative to generate short-term growth at all costs is too strong, and political time horizons are far too short."
Faculty News

Professor Arun Sundararajan discusses the impact of how workers in the sharing economy are classified

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Excerpt from Politico -- "'The right path forward would be to just recognize that there is a different kind of company-worker relationship that’s being created here,' Arun Sundararajan, a business professor at NYU who focuses on the sharing economy, told me a few months ago. 'That it’s somewhere in between from being an arm’s length independent contractor and being a full-time employee.'"
 
Faculty News

Professor Arun Sundararajan shares recommendations for protecting independent contractor employees

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Excerpt from Marketplace -- "Arun Sundararajan, a professor at New York University's Stern School of Business and an expert on the digital sharing economy, says the way to protect employees isn’t by making everyone a traditional employee. 'Instead we should sort of translate ... the rights that full-time employees have to a broader spectrum of the economy,' he says."
Faculty News

Professor Eli Bartov's research on using Twitter to predict corporate earnings and stock returns is featured

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Excerpt from TheStreet.com -- "If you want to make more money from trades linked to corporate earnings, then head for the Twitter-sphere. It could give you a better result than Wall Street's best, according to new research. The findings come from a recent study by scholars at New York University, Arizona State University and the University of Toronto. The paper, titled  'Can Twitter Help Predict Firm-Level Earnings and Stock Returns?' finds that the wisdom of the Twitter crowd can be a pathway to trading riches."
Faculty News

Professor Rosa Abrantes-Metz discusses the rising cost of prescription drugs

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Excerpt from Los Angeles Times -- "'If brand-name manufacturers do not get their investment worth, guess what — no new drugs,' said Rosa Abrantes-Metz, an adjunct associate professor at New York University's Leonard N. Stern School of Business. 'And then who loses? All of us.'"
Faculty News

Professor Anindya Ghose discusses the impact of crowdfunding on the venture capital industry

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Excerpt from Reuters -- "This is a fundamental shift in how companies and entrepreneurs operate. This is going to affect the venture capital industry. It already is affecting [it], in some ways. It's going to affect how people who want to raise money think about raising money. This is a very powerful means of potential investors and entrepreneurs coming together, bypassing... the angel investors, the venture capitalists."
Faculty News

In an op-ed, Professor Nouriel Roubini argues that the world needs an early-warning system for trouble in financial markets

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Excerpt from Project Syndicate -- "An assessment of sovereign risk that is systematic and data-driven could help to spot the risks that changing global headwinds imply. To that extent, it provides exactly what the world needs now: an approach that removes the need to rely on the ad hoc and slow-moving approach of ratings agencies and the noisy and volatile signals coming from markets."
Faculty News

Professor Jeanne Calderon's joint research with Stern guest lecturer Gary Friedland on the use of EB-5 capital is featured

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Excerpt from SF Weekly -- "For real estate developers, EB-5 is a great deal. Where a traditional financier might demand a significant return on investment, an EB-5 investor gets his money's worth courtesy of the US government. Earning a return is secondary, and both the Securities Exchange Commission and an academic study by the NYU Stern Center for Real Estate Finance Research have found that EB-5 investors accept lower interest rates on their investments than they would if the green card weren't offered."
Faculty News

Professor Scott Galloway participates in a roundtable discussion on retailers' digital strategies

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Excerpt from Hub Magazine -- "The consumer always wins. If you give consumers three choices — a great e-commerce site with no stores, a great retailer with great stores but bad digital, or the multi-channel retailer — they will say door number three. The future looks more like Williams Sonoma, Sephora or Macy’s than it does Amazon."
Faculty News

In an op-ed, Professor Michael Spence examines the productivity slowdown since 2008 and the lagging effects of IT investment

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Excerpt from Project Syndicate -- "Organizations, businesses, and people all have to adapt to the technologically driven shifts in our economies’ structure. These transitions will be lengthy, rewarding some and forcing difficult adjustments on others, and their productivity effects will not appear in aggregate data for some time. But those who move first are likely to benefit the most."
Faculty News

In an op-ed, Professors Jennifer Carpenter and Robert Whitelaw argue that it's time to let China's stock market self-correct

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Excerpt from Foreign Policy -- "Our research suggests that, contrary to perception, China’s stock prices have been surprisingly informative about future corporate earnings and have been generating useful signals for managers. Specifically, the predictive power of prices for future earnings in China is comparable to that in the United States, and the strength of that predictive power is significantly correlated with corporate investment efficiency."
Faculty News

Professor Aswath Damodaran's research on pharmaceutical companies is cited

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Excerpt from The Wall Street Journal -- "The other great problem is the ability of pharmaceutical and biotechnology companies to charge whatever the market will bear. According to a January 2015 analysis by Aswath Damodaran, a professor at New York University’s Stern School of Business, the average yearly profit margin for the top 151 pharmaceutical companies world-wide is more than 24% and for the top 400 biotech firms it is nearly 23%."
School News

PhD student Steven Dallas' research on nutrition labels and serving sizes is featured

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Excerpt from The Washington Post -- "In one experiment, half of the participants were shown the current nutrition label for mini chocolate chip cookies, and the other half saw the proposed label. Then they were told they would be offered some, and asked how many they expected to eat. Those who had seen the new label, which used six cookies as a serving size, said they expected to eat more than those who saw the current one, which used three cookies as a serving size."
Faculty News

Professor Lawrence White shares his positive outlook on the economy despite stock market turbulence

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Excerpt from PIX 11 News -- "'Just remember to think about the long run,' Dr. White said in an interview. 'In the long run, we’ve got a solid economy.'"
Faculty News

Professor Jennifer Carpenter discusses her joint research with Professor Robert Whitelaw on China's stock market

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Excerpt from Marketplace -- "Jennifer Carpenter is associate professor of finance at New York University's Stern School of Business, and along with professor Robert Whitelaw and Fangzhou Lu recently authored a paper in which 'we find that against all odds, China’s stock prices are surprisingly informative about future corporate earnings,' says Carpenter. 'It’s comparable to levels of price informativeness that you see in the U.S.'"
School News

In a co-authored op-ed, MBA student and military veteran Bryan Coughlin addresses gender bias within the military

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Excerpt from War on the Rocks -- "As leaders in the military, it is our responsibility to ensure a more lethal fighting force in the future. Last week, two women graduated from the Army’s grueling Ranger School for the first time. Before this milestone event, institutional bias in the U.S. Army reinforced an assumption that women would simply never be capable of completing its most challenging small unit leadership course. Captain Griest and Lieutenant Haver’s graduation not only repudiates this assumption, it also demonstrates that there is still much talent within the ranks that remains to be harnessed."
Faculty News

In an op-ed, Professor Michael Spence discusses the Chinese stock market's impact on the global economy

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Excerpt from The Huffington Post -- "As for the markets, experts in market behavior generally expect movements like those we have seen to overshoot before the value investors are attracted in to stabilize the markets. If the Shanghai composite index gets to 2,500, the price-earnings ratios and valuations will surely look attractive for the longer-term investor."
School News

CORE Leader, a start-up founded by Chris Shaw (MBA '16) and Billy Knapp (MBA '16) is featured

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Excerpt from Task & Purpose -- "'While we left the military, our passion for working in and with teams stayed with us,' said Shaw. 'We became military officers in the first place to help teams reach their potential and accomplish their missions. CORE was a natural extension of this line of work.'"
Faculty News

Professor Scott Galloway's views on retail and e-commerce are highlighted

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Excerpt from Forbes -- "I also believe that Amazon cannot survive as a pure-play retailer. Stores are the new black in the world of e-commerce. We’ve discovered these incredibly flexible robust warehouses called stores … retailers are not befuddled prey waiting around to be disrupted. They are in fact growing their e-commerce businesses."
Faculty News

Professor Menachem Brenner's research on the development of a volatility index is highlighted

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Excerpt from Investor Wired -- "The idea of a volatility index, and financial instruments based on such an index, was first developed and described by Prof. Menachem Brenner and Prof. Dan Galai in 1986. Professors Brenner and Galai published their research in the academic article 'New Financial Instruments for Hedging Changes in Volatility,' which appeared in the July/August 1989 issue of Financial Analysts Journal."
Faculty News

Professor Lawrence White discusses the impact of stock market corrections on pension funds

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Excerpt from NY1 News -- "'There is a separate whole academic debate about whether pension plans of any kind should be investing in the stock market because of this kind of volatility,' said Lawrence White, a professor at the NYU Stern School of Business."
Faculty News

Professor Arun Sundararajan is interviewed on the sharing economy's impact on the labor market

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Excerpt from Deutsche Welle -- "There's a very complex set of factors that changes when you shift away from full-time salaried work towards these more flexible arrangements. In the United States right now, a lot of the social safety net, a lot of the benefits - ranging from steady salary and paid vacations to insurance and different kinds of health benefits - all of that is connected to being employed full-time, and it's much better if you're an employee. And as more and more work becomes flexible, it happens that these new sharing economy providers don't have access to the same benefits as fulltime employees do."