Eugene F. Fama on the government's role in the subprime mortgage meltdown
Chicago Booth's Eugene F. Fama says that the government played a significant role in creating the crisis by insuring risky loans in the hopes of boosting home ownership.
How can we improve social mobility?
The disparity in wealth between the top and lower echelons of households in the US and other countries has garnered a great deal of research and commentary. But how easy is it to move from one echelon to another—and what could we do to facilitate upward movement?
Creative destruction isn’t as important as you think
Economist Joseph Schumpeter called creative destruction the “essential fact about capitalism.” But though there are many examples of creative disruption that spring readily to mind, the phenomenon may be less pervasive than it appears.
Why are stock returns lower under Republicans?
Though Republican presidential candidates often campaign on pro-business policies, historically the stock market has performed significantly worse when there’s been a Republican in the White House.
Does better pay make better politicians?
In the private sector, salary is one of an employer's most effective tools for attracting top talent. Does the same hold for legislators?
What start-ups should know about how VCs think
What are venture capitalists looking for when they consider investing in a start-up? To find out, a group of researchers including Chicago Booth's Steve Kaplan asked 889 venture capitalists about their strategies, philosophies, and practices.
What's really hurting the American worker
As the US labor share declines, many people blame globalization and automation. But after analyzing the data, Chicago Booth’s Simcha Barkai has a different view: he says workers are suffering because there’s less and less corporate competition.
Today’s monopolies are yesterday’s startups
Competition is the essence of a capitalist economy, says Chicago Booth’s Luigi Zingales. But he cautions that in the United States, industry concentration is growing, and an increasing number of academics are concerned about the ramifications.
How can start-ups attract investors?
Many entrepreneurs hope to attract the attention—and support—of venture capitalists, but very few of them will. What are VCs looking for in their investments? Chicago Booth's Hal Weitzman talks with Booth faculty Steve Kaplan and Ira Weiss and Katherine Wanner of Abundant Venture Partners about start-up funding from the VC perspective.
How a Value Added Tax could spark economic growth
The US and other developed economies are stuck in a low-growth pattern, and low interest rates limit what central banks can do to help. While raising taxes is politically risky, research suggests that a Value Added Tax could be used to spark growth.
What Mexico can teach us about social security
Chicago Booth's Chad Syverson explains that Mexico's transition to social-security privatization is a cautionary tale for how fees can spin out of control, eating into the returns of the workers enrolled in the program.
Wall Street has a gender gap in accountability, too
Among financial advisers, women are less likely than men to have a record of misconduct, but those who do are punished more severely than their male counterparts.