Faculty News

In an op-ed, Prof. Rosa Abrantes-Metz explains how to prevent banks from rigging metal prices

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Excerpt from Bloomberg -- "Whether or not authorities seek and find conclusive evidence of manipulation, they should learn the lesson of the London interbank offered rate and reform the gold and silver markets in a way that will deter such behavior. Both metals are highly liquid commodities, so their benchmark prices could easily be set by observing actual trades. To ensure reliability, the process should be overseen by an independent institution with the appropriate governance structure and minimal conflicts of interest."
Faculty News

Research Scholar Sarah Labowitz on the White House review group's recommendations for the NSA

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Excerpt from The Daily Beast -- “The recommendations of the president’s review group report indicate that the status quo is unacceptable. The ball is now in the administration and Congress’ court. Restoring America’s credibility on civil liberties through executive and legislative action is the right thing to do, and it’s good for the technology business.”
Faculty News

Prof. Rosa Abrantes-Metz's research on the Libor scandal is cited

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Excerpt from Bloomberg -- "A lack of regulation has left the foreign-exchange market vulnerable to abuse, said Rosa Abrantes-Metz, a professor at New York University’s Stern School of Business in Manhattan. 'If nobody is monitoring these benchmarks, and since the gains from moving the benchmark are possibly very large, it is very tempting to engage in such a behavior,' said Abrantes-Metz, whose 2008 paper 'Libor Manipulation' helped spark a global probe of interbank borrowing rates. 'Even a little bit of difference in price can add up to big profits.'”
Faculty News

Prof. Nouriel Roubini's view on the current housing market is referenced

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Excerpt from Associated Press -- "New York University economist Nouriel Roubini worries about bubbles in Switzerland, France, India, Indonesia, Turkey, Israel and Brazil. These countries have accelerating prices, rising price-to-income ratios and huge proportions of mortgage debt as a share of total household debt."
Faculty News

Prof. Arun Sundararajan on regulation of the sharing economy

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Excerpt from Yahoo! Finance -- "'The regulations were designed for the analog world,' said Arun Sundararajan, a professor at New York University who studies digital economies. 'Now there are digital ways of providing these services that have created new forms of consumption. The conflict is natural.'"
Faculty News

Prof. Richard Sylla on the Volcker Rule

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Excerpt from The New York Times -- “'The passage of the Volcker Rule represents a step partway back to the Glass-Steagall regime that has historical significance for helping to give us four to five decades of relative financial stability from the 1930s to the 1980s,' said Richard E. Sylla, the Henry Kaufman professor of the history of financial institutions and markets at New York University. 'Even if we don’t see a lot of actions against violators, the mere fact that the rule is on the books will make banks think twice before engaging in activities that might result in actionable violations.'”
Faculty News

Prof. William Baumol's and Prof. Emeritus Michael Moses's research on art investing is mentioned

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Excerpt from The Wall Street Journal -- "A number of economists have estimated the returns to art over a very long period. Overall, these estimates range from about 1% to about 5% real returns. For example, one of the earlier studies, by William Baumol, estimated the real returns from 1652 to 1961 to be 0.6%. William Goetzmann estimated the real returns from 1716 to 1986 to be about 2% in real terms, and Jianping Mei and Mike Moses estimated real returns from 1875 to 2000 to be 4.9%."
Faculty News

Visiting Prof. Joe Henrich discusses the recent ruling against Utah's polygamy ban

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Excerpt from TIME -- "Monogamous norms 'lead to greater economic success, more trade and lower crime,' argued Joseph Henrich, a psychology and economics professor at the University of British Columbia who was called on as an expert witness."
Faculty News

Dean Peter Henry discusses global economic growth, from his book, "Turnaround"

Excerpt from Exchange Morning Post -- "With lessons from several emerging economies, Dr. Blair Henry speaks to inflation, trade, and leadership before turning to issues of representation and voice in global economic institutions. Tune in to hear the full conversation and learn more about this fascinating subject."
Business and Policy Leader Events

Neil Blumenthal, Co-Founder of Warby Parker, Joins Langone MBAs for Speaker Series

Neil Blumenthal, co-founder and co-CEO of Warby Parker, joined Langone MBA students for a 2013-2014 Langone Speaker Series event. Professor Charlie Murphy moderated the discussion, beginning with a one-on-one interview and followed by an open Q&A session with students.
Faculty News

Profs. Andrea Frazzini and Lasse Pedersen's research on Warren Buffett's investments is mentioned

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Excerpt from The Wall Street Journal -- "Andrea Frazzini, one of the study's authors, a finance professor at New York University and a vice president at AQR, said the Berkshire portfolio has, on average, been leveraged to a similar extent through Mr. Buffett's career."
Faculty News

Prof. Thomas Philippon's research on the efficiency of the finance industry is cited

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Excerpt from MarketWatch -- "The financial sector is actually less efficient than it was before ATMs and online trading and collateralized debt obligations, Philippon has found. In real terms, financial services cost more now than they did when J.P. Morgan’s clerks filled in the ledger by hand."
Faculty News

NYU Research Prof. Ian Bremmer shares his predictions for the Middle East in 2014

Excerpt from The Economist -- "In 2014, the non-jihadist opposition in Syria will recognise that without active international support, there is little choice but to negotiate with an Assad regime that is beginning to reconsolidate control in Syria. We won’t see a formal end to the conflict in 2014, but violence is likely to lessen as the balance of force swings heavily to the government."
Faculty News

Prof. Prasanna Tambe's book, "The Talent Equation," is featured

Excerpt from TheWorkBuzz -- "In 'The Talent Equation,' a new book I authored with Lorin Hitt (Wharton School, University of Pennsylvania) and Prasanna Tambe (Stern School, New York University), we examine what employers can do to change the hiring environment and why education is fundamental to strengthening our labor force. Even in today’s recovering economy, education has retained its high value and is still the strongest step you can take in your career."
Research Center Events

Stern's Urbanization Project Hosts the Brown Bag Discussion Series

Street View of NYU Stern
The Urbanization Project’s Brown Bag Discussion Series brings together students, scholars, and practitioners from NYU and NYC to talk with featured guests about their ongoing urban-related work.
Faculty News

In an op-ed, Profs. Viral Acharya and Bruce Tuckman explain how LOLR policies can be problematic

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Excerpt from Financial News -- "The 'open for business' speech delivered by Bank of England Governor Mark Carney at the end of October was a new milepost in the policy of lending of last resort (LOLR). Authorities around the world have now conceded that central banks will, in times of stress, provide abundant liquidity to any or all systemically important institutions. Unfortunately, guaranteed liquidity enables and encourages firms to take excessive risks. Well aware of this 'moral hazard' effect, authorities have responded with stricter regulations and new resolution powers. We are skeptical, however, that a new regulatory regime—even if an improvement over previous ones—can close off all channels of excessive risk and leverage."
Faculty News

Prof. Michael Spence discusses the US economic recovery

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Excerpt from Bloomberg -- "Our main problem is that we don't have enough aggregate demand and what our economy is doing is restoring some of the domestic demand slowly and accessing some of the external demand because we're becoming more competitive."
Faculty News

Profs. Alexi Savov and Thomas Philippon's research on stock prices is highlighted

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Excerpt from The New York Times -- "Research by Jennie Bai, Professor Philippon and Alexi Savov shows that even as the differential between buying and selling stocks and bonds has fallen, prices aren’t better. Prices have displayed the same ability to forecast corporate futures steadily for the last 50 years."
Faculty News

Prof. Prasanna Tambe discusses company employment brands, from his book, "The Talent Equation"

Excerpt from ERE.net -- "If you’re familiar at all with HR trends of the past few years, you’ve likely heard the employment branding topic come up countless times in conversation, trade publications, and the HR blogosphere. But even after years in the spotlight, most people involved with the hiring process claim they don’t think their companies have an employment brand or aren’t sure they have a definable employment brand — that includes 74 percent of hiring managers and 48 percent of HR managers, according to a 2011 CareerBuilder survey. However, everyone has an employment brand whether they know it or not. Employers and workers contribute to its creation, as do the job seekers who receive the recruitment content and form perceptions of a company."
Faculty News

Prof. Lawrence White discusses the Volcker rule banning proprietary trading

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Excerpt from Fox Business -- "Grass is not going to grow in the streets of America, but at the same time, this is not a good rule. It makes these activities even more expensive or just impossible and drives them either offshore or into shadows somewhere. It's just not a sensible way to proceed."
Faculty News

In an op-ed, Prof. Adam Alter discusses how cultural beliefs shape financial decision-making

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Excerpt from The New Yorker -- "Easterners are puzzled by the Western preoccupation with the number thirteen, but many people in China, Taiwan, Singapore, and other East Asian countries similarly fear the number four. One analysis, to be published late next year, found that U.S. copper, cotton, and soybeans experience lower commodities-market returns on the fourth day of each month, when superstitious Chinese brokers prefer to postpone their trading decisions. Both Samsung and Nokia avoid cell phone-model numbers containing the digit four, and Nokia’s S60 software platform released its fifth edition immediately after its third edition."
Faculty News

Prof. Anindya Ghose's NPR interview on how free products influence reviews is cited

Excerpt from iVillage -- "Anindya Ghose, an NYU professor who studies consumer reviews, said Vine members might review things more positively than people who had to pay for their stuff. 'As humans we are hard-wired to give in to this sort of enticement where if you continuously get things for free, then you're more likely to be biased positively than biased negatively,' he said."
Faculty News

Prof. Baruch Lev explains how investors and executives can learn from each other

Excerpt from BDLive -- "'Interacting with investors is not only about giving information,' says Lev. 'Information flows both ways: executives can learn from investors. Stock price movements around earnings announcements reveal a lot about investors’ growth expectations and their perceptions of management’s credibility.'"
Faculty News

In an op-ed, NYU Research Prof. Ian Bremmer reacts to China's claim to a wider air zone

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Excerpt from Reuters -- "The air zone declaration and its aftermath make it clear that China intends for its security position to win out in the East China Sea, and expects it to be a faster process, given the shift of the regional security and economic power balance in its favor."

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