Faculty News

Professor Arun Sundararajan is interviewed about Uber's passenger ratings

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Excerpt from TIME -- "I called Arun Sundararajan, an NYU business-school professor and the author of new book The Sharing Economy. 'A near perfect rating means you were consistently pleasant, civil, conversational, polite to the wide range of individuals who gave you your Uber rides,' he said, 'even when you were busy, distracted, late or stressed.'"
 
Faculty News

Professor Paul Romer, who was recently appointed Chief Economist of the World Bank, is profiled

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Excerpt from Institutional Investor -- "Romer is nt of the more original and wide-ranging thinkers in economics today. He came to prominence in the 1980s as a proponent of so-called Endogenous Growth Theory, which holds that economic progress depends not just on capital and labor but on the ideas and knowledge that drive technological change."
 
School News

Stern's Ventures Fellow Program is highlighted

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Excerpt from FindMBA -- "As part of the new 'NYU Stern Ventures Fellow Program,' fellows will receive a $10,000 stipend, workspace, and will be able to participate in a summer program, which includes an immersion week in Silicon Valley. After the summer is over, fellows will also continue to receive mentorship and other support throughout their second year of the MBA program, and will be able to receive course credit for independent study where they can focus on their startups."
School News

Alison Goggin, Executive Director of MBA Admissions, discusses Stern's adoption of GMAC's Common Letter of Recommendation for applicants

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Excerpt from Clear Admit -- "'For this admissions season, at Stern we are starting with the LOR open-ended questions,' Goggin says. 'We feel this is the part of the recommendation that takes the most time to prepare and by using common questions, we can dramatically lessen the burden on those writing recommendations for one applicant at multiple schools.'"
Faculty News

Professor Pankaj Ghemawat shares what companies operating throughout Spain can learn from companies doing business globally

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Excerpt from El Economista -- "In Spain, Professor Ghemawat's theory is absolutely correct, because the differences, especially legislative, existing between our regions require companies to focus their business regionally, while maintaining a national business strategy."
 
Faculty News

Professor Daniel Altman discusses the impact Donald Trump's policies could have on Mexico

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Excerpt from Foreign Policy -- "These are two big reasons — over and above all the racist rhetoric, which I’ll try not to dwell on — why Mexicans fear a Trump presidency. The irony is that these same policies would threaten two of Trump’s other campaign promises: stopping undocumented migrants from entering the United States from Mexico and getting tougher on crime."
Faculty News

Professor Adam Alter discusses the addictive nature of dating apps

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Excerpt from Mic -- "'Addiction always reflects an underlying psychological need that isn't met,' New York University's Adam Alter, author of the forthcoming book Irresistible: the Rise of Addictive Technology and the Business of Keeping Us Hooked, told me in an email. 'For some people, that need is social validation; for others it's confirmation that they're attractive; and for others still it might be a sense of mastery over the environment when they feel helpless or powerless.'"
Faculty News

Professor Michael Dickstein discusses how insurers quitting Obamacare will impact rural America

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Excerpt from Vox -- "'It’s tough in these rural markets, because it’s not like these rural markets were really competitive to begin with before ACA,' said Michael Dickstein, an economist at New York University who has studied insurers’ participation in the health law’s rural markets."
Faculty News

Professor Justin Kruger's joint research on self-perception is highlighted

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Excerpt from the Financial Times -- "Dunning and Kruger set tests of grammar, logic and even having a sense of humour to a group of undergraduates. Then they asked them how they stacked up to others in the group. Was their grasp of logic and grammar better or worse than average? Were they better able than other students to distinguish funny from unfunny jokes?"
Faculty News

Professor Richard Sylla weighs in on negative borrowing rates

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Excerpt from The Wall Street Journal -- "Mr. Sylla tells me there are 'precious few minus signs before any rates' in his book ['The History of Interest Rates']. The only ones he can recall were on U.S. Treasury bills around 1941, just before Pearl Harbor. But 'later research showed that anomaly might be explained by an option value embedded in bills then, so the negative yields may have been an artifact.' Mr. Sylla sums it up: 'There were no negative bond yields in 5,000 years of recorded history.'"
School News

First-year Stern MBAs Allie Esslinger, Ricardo Aldrey and Christopher Larsen are featured on Poets & Quants' list of Stereotype-Defying MBA Students

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Excerpt from Poets & Quants -- "...ultimately I knew that NYU Stern was the better fit. It offers so many concentrations and clubs that will allow me to explore opportunities in a city with so many intersecting industries. Indie film still reigns here. And there’s still a lot of room to grow in terms of the tech scene and VC funding."
Faculty News

Professor Jonathan Haidt's article on trigger warnings on college campuses is cited

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Excerpt from The Atlantic -- "Those critics should grapple with people who believe students are best positioned to receive an excellent education when primed to consider nothing off limits; or that learning to face wrongheaded or even hurtful ideas is, beyond academic necessities, a key life skill; or that, per Greg Lukianoff and Jonathan Haidt, campuses that police speech 'engender patterns of thought that are surprisingly similar to those long identified by cognitive behavioral therapists as causes of depression and anxiety. The new protectiveness may be teaching students to think pathologically.'"
Faculty News

Professor Arun Sundararajan weighs in on AirBnB regulations

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Excerpt from MarketWatch -- "Regulation is likely to help Airbnb in the long run, as it will increase awareness of the service and likely push more people to list their homes.'As the regulatory framework gets clearer, the supply will go up and that will naturally, for some period, lower prices,' Sundararajan said. Sundararajan added that the increased supply will likely be met by increased demand, as more of the U.S. finds out about the service, meaning that it’s hard to predict the price trend over time."
Faculty News

Professor Jonathan Haidt explains why Donald Trump appeals to some voters

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Excerpt from Reuters -- "Jonathan Haidt, a social psychologist at New York University’s Stern School of Business, studies how people adopt their political beliefs. 'Trump is the first candidate to speak to—and speak for—working-class white men in a long time,' Haidt says. That separates him from the last two Republican nominees. Mitt Romney, who lost in 2012, didn’t do that, 'and John McCain didn’t particularly reach out to that constituency' in 2008."
Faculty News

Professor Aswath Damodaran's blog on cash flows is cited

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Excerpt from Reuters -- "'My biggest concern, which I voiced at the start of the year and continue to worry about, is the sustainability of cash flows. Put bluntly, U.S. companies cannot keep returning cash at the rate at which they are today,' Aswath Damodaran, a professor of finance at New York University, writes in his blog."
Faculty News

In an interview, Professor Kim Schoenholtz discusses Fed policy options in an era of low inflation and low growth

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Excerpt from the Financial Times -- "The big picture is that policymakers are aware we're in an era of low inflation and low growth. And that means that the neutral real interest rate, the equilibrium real interest rate, is very low. Maybe less than 1%. And that means that when we get to the next recession, it's very likely that interest rates are going to fall back to zero again in nominal terms. And they're thinking about what kinds of policies might make sense in a world like that to make monetary policy work."
Faculty News

Professor Susan Stehlik shares advice for managers on giving effective feedback

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Excerpt from The Economist -- "Stehlik recommends a simple exercise you can do on a regular basis to clarify your own intentions toward those around you. Draw a dial spanning from empty to full, like a fuel gauge. Write down the names of all the people in your inner circle: your direct reports, spouse, friends – even your boss. Next, evaluate where each person’s gas gauge is at. Do they seem like they’re a bit depleted? Running on empty? Now ask yourself: What can I do to bring this person’s gauge to full? The best, most effective feedback comes from this genuine desire to help others."
Faculty News

Professors Melissa Schilling and Aswath Damodaran weigh in on Uber's business model

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Excerpt from Bloomberg -- "'There are two main reasons for tech companies to lose money early to make money later, and neither of them apply to Uber.' ... 'Ride sharing has grown faster, gone to more places and is used by more people than most people thought it would be able to, even a couple of years ago. The pace of growth is also picking up.'"
Faculty News

Dean Peter Henry weighs in on the powers of central banks

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Excerpt from The Washington Post -- "'I think central banks have to be very careful not to overreach,' said Peter Blair Henry, dean of New York University’s Stern School of Business. 'Central banks are really very limited.'"
Faculty News

In an interview, Dean Peter Henry discusses the role central bankers play in shaping growth

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Excerpt from the Financial Times -- "We expect so much from our central bankers because monetary policies has really run, in many ways, its course. Monetary policy has been really competent and needs to continue to be competent. But it's too much to think that monetary policy can fight a liftoff in growth at this point and time. That really has to come from real side reforms that our lawmakers, both here in the United States and abroad, need to do."
Faculty News

Professor Roy Smith weighs in on activist investor ValueAct's stake in Morgan Stanley

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Excerpt from the Financial Times -- "If ValueAct gets traction, other management teams should stand ready to defend themselves, [Prof. Roy Smith] says. He adds that for too long the entire US banking sector has been 'adrift', failing to address one fundamental question. 'If you’re in a business where your cost of capital is greater than your return, someone should ask you, 'why is this a viable business?'"
Faculty News

Professor Aswath Damodaran discusses how interest rates affect the values of stocks and bonds

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Excerpt from The New York Times -- "When interest rates are lower, earnings are worth more and share prices tend to rise, said Aswath Damodaran, a finance professor at New York University, who has explained this truth in elaborate formulas, many of which he posts on his website. But the simplest way of looking at it, he says, and the most important for an investor, is to consider how interest rates affect the value of a stock and a bond. 'Low rates have had a big effect on the stock market,' he said. 'Stock is much, much cheaper than bonds at today’s interest rates.'"
Faculty News

Dean Peter Henry explains why central bankers need action by lawmakers to ensure growth

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Excerpt from the Financial Times -- "Peter Henry, the dean of New York University’s Stern School of Business, says central bankers still have the tools to provide a floor under the economy, but cannot provide a springboard for growth in the absence of action by lawmakers in areas such as immigration, trade and fiscal reform. 'Negative real rates have not yet spurred a recovery in investment. So one has to ask the question is there something else standing in the way,' the economist says."
Faculty News

Professor Aswath Damodaran explains why dividends and stock buybacks are the market's biggest risk

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Excerpt from The Wall Street Journal -- "Mr. Damodaran, who likes to be provocative, says with rates this low, traditional valuation metrics are distorted. Instead, the inability of companies to keep paying off their investors will cause the next downturn. 'This is the weakest link in this market,' Mr. Damodaran said in an interview. 'We know cash flows will go down. What we don’t know is what the market is pricing in.'"