Experience Stern | News & Events

New research from NYU Stern Professor Laura Veldkamp and Nina Boyarchenko and David O. Lucca of the Federal Reserve Bank of New York, finds that information sharing in U.S. Treasury auctions raises auction revenues, as bidders are better informed. When information sharing enables collusion, the collusion initially costs revenue, but prohibiting information sharing costs more.

Excerpt from the Financial Times -- "...it is exciting and encouraging that the bank is about to have a chief economist, Paul Romer, who is both a top-rate thinker and a boldly unconventional policy entrepreneur."

Excerpt from Bloomberg -- "'There has been enormous regulatory pressure on financial institutions to reduce risk,' Tuckman said. 'Therefore, deleveraging has not only reduced the overall size of the repo market, but has also increased the fraction of the market in Treasury repo.'"

Excerpt from Bloomberg -- "'While these banks may meet a weak regulatory test, as the more than 40 percent decline of bank equities over the past year implies, they do not meet the market test,' [Kim Schoenholtz and coauthor Stephen Cecchetti] write. This criticism is consistent with a new research paper published by academic economics Viral V. Acharya, Diane Pierret, and Sascha Steffen. Based on the disclosures made available by the EBA stress test, they estimate that European banks face a capital shortfall of 123 billion euros, when set against U.S. supervisory standards and a 4 percent leverage ratio — also known as a capital-to-asset ratio, a measure that determines how much capital a lender needs to set aside relative to the assets they hold."

Excerpt from Marketplace -- "'There’s just less labor content in a manufactured item,' said Robert Whitelaw, professor of entrepreneurial finance at NYU. 'A high-end GE refrigerator only has two hours of labor in it,' he said, adding that automation is also a powerful force at the low end of manufacturing. 'Where labor costs are less important, other things become more important, like distance,' he said."

Excerpt from the Financial Times -- "Using auction data and game theory, the authors came to the conclusion that full pre-auction information sharing between dealers and investors would raise $4.8bn more revenue for the US Treasury each year than a fully closed bidding mechanism where no information is shared. The paper comes from New York Fed economists Nina Boyarchenko and David Lucca, along with NYU professor Laura Veldkamp."

Excerpt from the Financial Times -- "In theory, the blockchain technology could improve the efficiency of the market, but if there is no entry, this would simply increase the rents of incumbents. A restricted blockchain could in fact be used by incumbents to deter entry and stifle innovation."

Excerpt from The Chronicle of Higher Education -- "Published in 2013 in the Industrial and Labor Relationship Review, this study found that stop-the-clock policies helped those who used them to get tenure — men as well as women."

Excerpt from the Financial Times -- "As Arun Sundararajan, a New York University academic, notes in his new book, The Sharing Economy, the percentage of self-employed workers in 1900 in the US was three times as high as it is today."

Excerpt from Reuters -- "You can still make money in exhibition, and the way to do it is to enhance the experience. More luxurious seating and food and alcohol all enhance the experience and also attract a difference audience."

Excerpt from We See Genius -- "Marketed as the 'Swiss army knife of diagnostic tools,' the handheld device connects to a smartphone through Bluetooth technology. It takes temperatures, measures blood oxygen, pressure, and glucose levels, and even serves as an ECG. ... Elements Digital Health’s identification of a problem and creation of a product-market fit helped elevate them from the other teams — which numbered more than 50 — that competed in the social venture portion of the contest, Franklin says."

Excerpt from TopMBA -- "NYU Stern, which announced a new fintech specialization in late June, added it to the curriculum because of the rapid growth to this sector in recent years. 'There is great demand in finance organizations to hire students who have analytical skills based in the information technology area,' states Yermack."

Excerpt from Bloomberg -- "'There have been very few manipulation cases proved,' said Rosa M. Abrantes-Metz, a New York University professor and market-manipulation expert who has testified in enforcement cases, including the natural gas case against BP. 'The requirements are high, they’re difficult to establish.'"

Excerpt from the Financial Times -- "The report’s authors — ZEW’s Sascha Steffen, NYU Stern’s Viral Acharya and University of Lausanne’s Diane Pierre — argue that the tests dramatically underestimate the actual capital shortfall at the banks, which they say could be as high as €900bn based on a market measure of capital."

Excerpt from The Guardian -- "The significance of the Didi deal is as much about the endurance of the sharing economy as it is about Uber itself, according to Sundararajan. 'This is a moment that speaks to the immense market size of sharing-economy industries,' he says. 'We should be looking at this as the next generation of transportation. Uber isn’t going after the taxi industry; it’s going after the automotive industry. It wants to divert the trillions of dollars we spend on new and used cars.'"

Excerpt from The Boston Globe -- "According to business-school professors at New York University and Stanford University, self-reliance earns women respect — as it’s a positive trait typically associated with men — and without undermining women’s reputation for being team players, and without the fallout from being bossy. In an analysis of 360-degree employee feedback, self-reliance was associated with better leadership ratings for women, but not for men, even controlling for age, self-esteem, dominance, and feeling in control of one’s fate."

Excerpt from Fortune -- "Large companies often pay tens of millions of dollars simply to show the Olympic rings insignia on their particular products in the run-up to the games and after, says Alvin Lieberman, clinical professor of marketing entrepreneurship and innovation at New York University’s Stern School of Business. ... Crowdfunding can be a good alternative to running up expenses they can’t pay for. 'It is a very good place for athletes to go and for people to connect,' Lieberman says."

Excerpt from The Washington Post -- "...A 2013 experiment found that young people looked more favorably upon older adults who 'act their age' by listening to Frank Sinatra over the Black Eyed Peas, or by being more generous with their money. One of the researchers, Michael North, an assistant professor at New York University’s Stern School of Business, says younger people tend to resent it when older workers don’t 'get out of the way' and retire."

Excerpt from The Motley Fool -- "I think don’t make diversification the enemy of value investing. You could be a value investor and diversified at the same time, and we live in a world where you have to spread your bets."

Excerpt from Fast Company -- "'Her influence has been extremely large, but in many ways, she's likely a unique case, and I wouldn't expect anywhere near the same thing from any other person,' Yermack says. 'Michelle was popular with Democrats, Republicans, and at times, even more popular than her husband. She was often very much able to transcend the politics and connect with the greater public.'"

Excerpt from CNNMoney -- "Since taking on the role, [Henry] has gotten NYU to start offering 34 scholarships to low-income undergraduates at the business school that cover all tuition, room and board. 'As a dean, opening the door to business school to high-achieving lower-income kids -- to teach these kids how to fish -- is one of my top priorities,' he said."

Excerpt from Fortune -- "'The EU is making the same mistakes over and over and over again,' says Viral Acharya, a professor at NYU’s Stern School of Business. 'They’re not demanding that the banks be recapitalized as they should be, and allowing things to get worse by enabling lenders to keep zombie loans they should have dumped years ago.'"
 

Excerpt from the Associated Press -- "'They didn’t expect to win so no one has any idea what to do now,' said Pankaj Ghemawat, a professor at IESE Business School in Spain and NYU, of the campaign to leave the EU. 'The analogy that comes to mind is the dog chasing the car. Sometimes the dog catches the car, and then doesn’t know what to do with it.'"

Excerpt from Forbes -- "'Facebook is very worried about Snapchat,' said NYU marketing professor Scott Galloway. 'Facebook is used to owning social media, and not being the hottest girl on campus has them a little freaked out.'"

Excerpt from BBC News -- "It's quite possible that Uber has prioritized rapid growth over deepening its understanding of the culture and business practices of the countries that it enters. I certainly think that they prioritize getting a presence on the ground over a careful, measured entry strategy. But in the business that they're in, that might be necessary. Because in each city, the company that gains drivers and gains passengers early is likely to have an advantage in the long run because when you have more drivers, the passengers like your service. And the passengers like your service, you become more attractive to drivers."