2017 - 18 Year in Review

20 OCTOBER 23– NOVEMBER 3, 2017 NARAYANA KOCHERLAKOTA Lionel W. McKenzie Professor of Economics, University of Rochester NOVEMBER 6–7, 2017 GUSTAVO MANSO Associate Professor and Distinguished Teaching Fellow, University of California, Berkeley, Haas School of Business Narayana Kocherlakota, PhD ’87, is currently Lionel W. McKenzie Professor of Economics at the University of Rochester. From 2009 to 2015, he served as president and CEO of the Federal Reserve Bank of Minneapolis. His research is widely cited and includes numerous publications in the areas of monetary economics, business cycles, payment economics, financial economics, public finance, and dynamic games/contracts. During his visit, Professor Kocherlakota presented his new research on how pricing bounds change the empirical and policy implications of monetary models. His presentation took place in the macro and international workshop. He also attended seminars and met with faculty across Chicago Booth and in the economics department. Gustavo Manso, associate professor and distinguished teaching fellow at the University of California, Berkeley, Haas School of Business, is cofounder and past board member of the Finance Theory Group (FTG), a highly respected initiative among finance faculty and thought leaders that gives young professors opportunities to collaborate and present their research in finance theory. Today, the FTG has grown from 30 to 150 members and hosts its biannual meetings at top schools including Harvard Business School, the Wharton School at the University of Pennsylvania, and the Stanford Graduate School of Business. Professor Manso’s research focuses on identifying incentives for promoting innovation in organizations. He examines how managerial compensation affects a firm’s innovation activity, and he has shed tremendous light on how the structure of scientific research funding influences breakthrough studies. During his visit, he presented his work in which he and coauthors examine whether and to what extent shareholder litigation shapes corporate innovation. They use the staggered adoption of the universal demand (UD) laws in 23 states from 1989 to 2005. These laws impose obstacles against shareholders’ filing derivative lawsuits, thereby significantly reducing a firm’s litigation risk. Following the passage of the UD laws, firms have invested more in R&D, produced more patents based on new knowledge and more patents in new technological classes, generated more patents that have a large