Prof. Stephen Ross, whose work helped reshape the field of financial economics, died at 73, reports Jessica Silver-Greenberg for The New York Times. Prof. Antoinette Schoar said that all of Ross’ “intellectually intricate finance theories were aimed at solving real-world problems,” adding this the models he developed were “both extremely elegant and extremely practical.”
Prof. Stephen Ross, a prize-winning professor known for his work developing the arbitrage pricing theory, died on March 3, reports Stephen Miller for Bloomberg News. Miller writes that Ross’ “work in the field of financial economics provided powerful contributions to both investment management and academic research.”
In an article for The Washington Post, Prof. David Singer writes that by limiting the Federal Reserve’s independence, Congress could hurt the U.S. economy. “Keeping the Fed independent and actively engaged in international coordination is the best way to maintain a stable and internationally competitive financial system in the 21st century,” he explains.
A new study by Prof. John Van Reenen finds that Britain’s exit from the European Union could cause a “negative impact on gross domestic product per capita of almost four times that of previous estimates,” reports Lucy Meakin for Bloomberg.
CNBC reporter Karen Gilchrist writes that a study by Prof. John Van Reenen shows that Brexit could end up reducing the incomes of people living in Great Britain by as much as 9.5 percent. “The report points to a 6.3 to 9.5 percent reduction in GDP per capita with the U.K. outside of the EU's single market,” Gilchrist explains.
Melvin Konner writes for The Wall Street Journal about new MIT research that shows mobile-money services helped lift at least 194,000 Kenyan households out of extreme poverty. The researchers found that the services significantly helped women, and estimated that mobile banking “induced 185,000 women to switch into business or retail” from farming, and increased saving.
Robert Gebelhoff writes for The Washington Post about a study by Prof. Tavneet Suri that shows mobile-money services helped reduce poverty in Kenya. The study “offers good evidence that having a place to put money that’s safe and easily accessible can make the lives of poor people considerably more efficient than cash-reliant economies,” Gebelhoff explains.
Nurith Aizenman reports for NPR on a new study that shows mobile banking can help lift people out of poverty. Prof. Tavneet Suri says she was “blown away” by the study’s results, which showed that women-led families with access to mobile-money services, “set aside 22 percent more in savings between 2008 and 2014.”
Popular Science reporter Kate Baggaley writes that a new study by MIT researchers shows that mobile money services helped two percent of households in Kenya rise out of poverty. “Women especially have benefitted from the spread of mobile money, which has helped many move from farming into business,” writes Baggaley.
Prof. Tavneet Suri has found that mobile money services helped lift almost 200,000 Kenyan households, many headed by women, out of poverty, reports Neda Wadekar for Reuters. Suri explains that when mobile payment systems “came to an area, women shifted their occupations and their savings went up."
Writing for the Financial Times, Prof. Daron Acemoglu examines how a new administration in Washington, D.C. could impact Turkey’s growth. While the implications “are likely to be dire for the Turkish economy,” Acemoglu adds that “even modest attempts towards a more inclusive economy can spearhead rapid and relatively high-quality growth.”
Writing for The Wall Street Journal, Senior Lecturer Robert Pozen argues that index stock options are the best way to ensure CEOs are paid based on their performance. “Indexed options are designed to reward managerial skill instead of fortuitous movements of the stock market,” he writes, citing Prof. Bengt Holmstrom’s Nobel-prize winning research on incentives.
Prof. Antoinette Schoar writes for The Wall Street Journal about her research examining the quality of advice financial advisors provide to their clients. Schoar writes that her research has shown that “holding financial advisers to higher fiduciary standards is not only good consumer financial protection but is also good market economics.”
Senior lecturer Robert Pozen writes for The Financial Times about the new money market (mm) reforms. Pozen argues that “in 2017, the SEC should re-consider its new rules on institutional MM funds in light of the actual rise in borrowing costs for banks, companies and local governments.”
Jericka Duncan of CBS Evening News speaks with Prof. Antoinette Schoar about her research investigating how credit card companies target consumers based, in part, on their level of education. “Customers who are more educated and financially more sophisticated receive very different credit terms,” she explains.