NYU Stern and Yale SOM Professors Awarded Nobel Prize in Economics
Faculty define a business school. Their research, teaching, mentorship, and influence have tremendous impact on the experience students have while there and often the careers they pursue once they graduate. From the curriculum they shape to the initiatives and centers they help run, faculty are vital. And it certainly never hurts when those faculty are also Nobel Prize winners.
This year, professors at two leading business schools were recognized with the 2018 Nobel Prize in Economic Sciences: Paul Romer at NYU Stern School of Business and William Nordhaus of Yale School of Management (SOM).
Nobel Prize Winners in Economics
At first glance, Romer and Nordhaus might seem unrelated. Romer has spent his career focusing on the nature of economic growth, seeking to answer the burning question, “Why do economies grow and how?” Nordhaus’ work, on the other hand, dives deep into the economic costs of environmental damage in an effort to gauge how much society would be willing to pay to avert climate change.
And yet both men have been hailed by Sveriges Riksbank, which awards the economics prize, as individuals known for “integrating innovation and climate with economic growth,” The Economist reports. They have also both influenced the way other economists think about critically important and complex systems.
Paul Romer
Paul Romer joined NYU Stern in 2010. Currently on leave, Romer is best known for founding the NYU Stern Urbanization Project in 2011, which conducts applied research on how policymakers in the developing world can use city growth to create economic opportunity and enact social reform.
In economics, Romer is known for developing the “endogenous growth model” and other approaches for spurring the market to generate new ideas. These models are based on the belief that the pace of growth and ways in which ideas are translated into growth depends on factors such as state support for research and development of intellectual-property protections. Hailed as a critical step toward understanding patterns of economic growth across the globe, his models highlight that the creation and spread of ideas is necessary for growth, but not alone adequate for initiating it.
In awarding Romer with the Nobel Price in Economics Sciences, the Swedish Academy cited his influence on “integrating technological innovations into long-run macroeconomic analysis.” (NYU Stern News)
William Nordhaus
Photography ©Mara Lavitt October 8, 2018 Evans Hall, Yale School of Management, 165 Whitney Ave. New Haven Yale University press conference presenting William Nordhaus, the Sterling Professor of Economics at Yale University. Nordhaus was awarded the 2018 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
Yale SOM Professor William Nordhaus has significantly impacted the teaching of economics at the school. A few years ago, he chaired the Yale Carbon Task Force, which looked at the market price of carbon-related products to determine the need for a market correction due to over-consumption or potential externalities. In particular, the task force delved into questions about distributing costs through organizations, tax effects of corrections, and connectivity problems and solutions.
As a professor, Nordhaus is best known for connecting people with important issues. He asks tough questions that make economics more accessible for everyday people and policymakers.
In economics specifically, he is best known for tackling complex systems surrounding climate change. His research has examined the economic costs of environmental damage and how much society would be willing to pay to avert them. As part of his work, he has combined mathematical descriptions of emissions with integrated assessment models, allowing him to project the impact of different global carbon emissions trajectories on global temperatures.
In awarding him the Nobel Prize in Economics, the Swedish Academy praised his work for “integrating climate change into long-run macroeconomic analysis.” (Yale SOM News)
Changing the Face of Economics
In the end, there’s no denying that both Romer and Nordhaus have blazed new trails in economics and humanity. Their names are synonymous with grappling with global issues we can’t afford not to understand.
This article on Nobel Prize winners has been edited and republished with permissions from Clear Admit.
Unfair Prestige, DePaul’s Master of Science in Taxation is Honored, and More – Chicago News
Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week.
Juries Treat Prestigious Companies Differently in Employment Discrimination Suits – Kellogg Insight
New research from Northwestern University Kellogg School of Management professor of management and organizations Brayden King finds that organizations are often treated very differently when it comes to certain lawsuits, often depending upon the prestige of the company
“Prestige is harmful to organizations in that it draws attention to their potential hypocrisy. These companies are supposed to be standout examples of virtue in their industries or examples of how companies should behave. It makes them high-profile targets,” King writes. However, there are plenty of benefits to the prestigious title, much of which may be considered unfair.
When it comes to business, wrongfulness isn’t often attributed to the same company, even in the case of repeat offenses. Working with Mary-Hunter McDonnell, Kellogg Ph.D. graduate, the research found that “juries don’t make the same character attributions to chronically deviant organizations. They think about organizations differently.”
You can read more about the research here.
Employers Rank DePaul MS in Taxation Highly – Kellstadt News and Events
For the second consecutive year, TaxTalent has ranked DePaul’s Master of Science in Taxation degree third overall as part of its 2018 Top in Tax Educational Survey. MST assistant director Diane Kuhlmann believes that what sets DePaul’s degree apart from the pack is its combination of theoretical and practical pedagogy. Alumnus Ben Ulman ’17 raved about his experiences as part the MST program:
“The program has given me a pretty wide tax skillset. Tax is ever-changing and the program taught me what is current with laws and regulations. The best part of the program for me was the professors’ knowledge of taxation and the network you build from class.”
Learn more about DePaul’s MST degree here.
Making Financial Decisions: The Endowment Effect – MD Mag
Famed Chicago Booth professor Richard Thaler, the winner of the 2017 Nobel Memorial Prize in Economic Sciences for his esteemed work in behavioral economics, explained in his 1991 research “The Endowment Effect, Loss Aversion, and Status Quo Bias” (alongside Daniel Kahneman and Jack L. Knetsch) about the particular habits consumers have when valuing their own items. Simply put, if you own something, you tend to put a higher value on in than if you don’t.
This internal methodology often finds itself in daily financial situations, such as buying or selling a house, according to Shirley M. Mueller, MD.
“Although economists originally hypothesized that the endowment effect occurred because humans are loss-averse, new evidence suggests there is an additional reason under specific circumstances. We identify with something that is ours.”
Read more about the endowment effort phenomena and a unique student experiment here.
Top MBA Recruiters: IBM
Finding a job after graduating with your MBA isn’t typically the issue. There are hundreds of industries and companies that would be happy to hire a freshly minted MBA graduate. The trouble is choosing the right company and job for you. If IBM hasn’t been on your list of top tech companies, maybe it should be.
About IBM
Headquartered in Armonk, New York—north of NYC and bordering Connecticut—IBM (International Business Machines Corporation) is a multinational technology company that operates in over 170 countries worldwide. It got its start in 1911, and since that time has manufactured leading-edge computer hardware, middleware, and software. The company also provides hosting and consulting services across the technology industry on topics ranging from mainframe computers to nanotechnology.
IBM is dedicated to a constant state of innovation, which is evidenced by its performance. In 2017, the company earned $79.1 billion in revenue and demonstrated that it’s still a cutting-edge technology company by expanding on many of its services including the IBM Cloud—who’s revenue accounted for 21 percent of total revenue. Other top products from the company include:
- z14: The world’s most powerful transaction system that encrypts data at scale, all the time.
- POWER9: POWER9 systems and software cut training times by 4x and boost AI accuracy.
- IBM Q Experience: The world’s first (and only) prototype 50-qubit system, which leads in quantum computing.
And IBM is always looking for new ways to be competitive. Last year, the company spent $5.6 billion on research and development. And in 2016, IBM filed 8,000 patents (the most of any company). It’s a company that is moving forward quickly, which can make it an exciting prospect for many MBA students. So, why should you work for IBM?
Why IBM?
Nicknamed Big Blue, the appeal of working for a company like IBM is fairly obvious. It’s one of the world’s largest employers with over 380,000 employees as of 2016, and those employees are top notch. Throughout the company’s history, employees have been awarded:
- Five Nobel Prizes
- Six Turing Awards
- Ten National Medals of Technology
- Five National Medals of Science
And some former IBM employees include Apple CEO Tim Cook, Microsoft Chairman John W. Thompson, SAP Co-Founder Hasso Plattner, and former Lenovo CEO Steve Ward.
In addition, if you choose to work for IBM, you have the opportunity to work almost anywhere in the world. The company has several main campuses across the globe including:
- Austin, Texas
- Raleigh-Durham, North Carolina
- Rochester, Minnesota
- New York City, New York
- Silicon Valley, California
- Rome, Italy
- Winchester, UK
- Johannesburg, South Africa
- Tokyo, Japan
And that’s just to name a few of IBM’s premier locations. And no matter where you land a job, you’ll be called an “IBMer” and receive a myriad of benefits including group life insurance, survivor benefits, paid vacation, and more.
In 2017, IBM was also recognized by Mogul as one of the Top 100 Innovators in Diversity & Inclusion as well as one of the Top 100 Companies for Millennial Women. And in 2015, IBM was named to Working Mother’s 100 Best Companies list for the 30th consecutive year.
Landing a Job at IBM
So, how do you land a job at IBM as a new MBA graduate? There are a few options. The first is the IBM General Management Leadership Development Program (GMLDP), which is the premier leadership development program for top MBA graduates. If you’re accepted, you’re hired into IBM on an accelerated path to leadership with opportunities across many of IBM’s areas including cloud, Watson, digital, offering management, and consulting.
And speaking of consulting, MBA graduates also have the opportunity to work as consultants in IBM Global Business Services. Within this area, MBA consultants are given a chance to combine sophisticated analytics with market-leading global solutions to provide deep industry insight and expertise alongside an actionable plan.
At any given time, there are over 5,000 job openings available in every industry and area from project management to marketing. Some available jobs for MBA graduates include:
- Strategy Consultant
- Projects Manager
- Account Executive
- Offering Manager
- Associate Partner for Tech/Data Strategy
- Digital Business Consultant
- Business Analyst
Meet an Employee
According to Nish Parekh, who leads IBM’s client and partner programming teaching businesses how to use IBM’s Watson technology, she’s living her dream. With Watson, she gets to work on the leading edge of AI technology and touch a variety of industries, which is exciting in and of itself.
“They bring in a lot of people from different parts of IBM, as well as some folks from outside IBM. Seeing the mix and all these people work together is fun. I get to learn from them,” Parekh told Fast Company. “Also, one of the greatest things about my job is the ability to stay on top of the latest and greatest technology. AI is up and coming; it’s exciting to be a part of that moment.”
Leavey Prof Looks Back At Role, Helping Nobel Prize Winner Richard Thaler
In the wake of famed economist Richard Thaler recently winning the Nobel Prize, the SCU Leavey School of Business looked deeper into SCU’s historical role in the development of the behavioral economics field.
Continue reading…
Chicago Booth Professor Richard Thaler Takes Home Nobel Prize in Economics
A professor from the University of Chicago Booth School of Business has won top honors in the field of economics. According to a press release, Richard Thaler was awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2017. Continue reading…
Paul Merage Professor Elected Vice President of the American Finance Association
David Hirshleifer, Finance Professor at UCI’s Paul Merage School of Business, was recently elected as Vice President of the American Finance Association (AFA). He was also assigned to the National Bureau of Economic Research (NBER). As AFA Vice President, Hirshleifer will serve a one-year term on a six-person executive committee, in charge of coordinating nominations for prospective members of the board of directors, managing yearly meetings, guiding the content of The Journal of Finance as well as a range of other responsibilities. It is fitting that Hirshleifer should help handle the content for the journal, as he has held an editorial position with the publication, as well as others, in the past.
