Amir Sufi Receives the Fischer Black Prize

Amir Sufi has been awarded the 2017 Fischer Black Prize by the American Finance Association. The prize is awarded every other year to the person under 40 whose work best exemplifies the Fischer Black hallmark of developing original research that is relevant to finance practice.

Amir Sufi

Professor Sufi is the Bruce Lindsey Professor of Economics and Public Policy at Chicago Booth, and his research focuses on finance and macroeconomics. In honoring him with the Fischer Black Prize, the AFA cited his recent research on household debt and the economy. This research forms the basis of his book coauthored with Atif Mian: House of Debt: How They (and You) Caused the Great Recession and How We Can Prevent It from Happening Again. The book was awarded last year’s Gordon J. Laing Prize by the University of Chicago Press.

Professor Sufi is a codirector of the Initiative on Global Markets, which has supported much of his research on household debt and the causes of the Great Recession.

In 2014, Professor Sufi gave a Myron Scholes Forum lecture for the IGM on the research that informed House of Debt. A video is available here.

Amir Sufi Receives Gordon J. Laing Prize

Amir Sufi, Bruce Lindsey Professor of Economics and Public Policy at Chicago Booth, has been awarded this year’s Gordon J. Laing Prize, for his book on the 2007 financial crisis and the Great Recession, which he coauthored with Atif Mian, an economics professor at Princeton. 

Amir SufiThe University of Chicago Press honors a notable faculty member each year to commemorate the late Gordon J. Laing, editor of the Press during the 1920s and 1930s. After reviewing over 400 publications, the Press selected Sufi and Mian’s book House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again.

In their book, which was informed by detailed research they conducted together, much of it at Chicago Booth, Sufi and Mian described how excessive household debt leads to foreclosures, causing individuals to spend less and save more. Less spending means less demand for goods, followed by declines in production and huge job losses. 

In receiving the award Professor Sufi described how the research setting at Booth contributed to his work on House of Debt. “It is this scholarly environment and the colleagues here that really push you to think very seriously about the conclusion you’re coming to, which really helped us to come to the conclusion that we did—the backbone of the book,” he said.

Professor Sufi is a codirector of the Initiative on Global Markets, which has supported much of his research on the causes of the Great Recession.

In 2014, Professor Sufi gave a Myron Scholes Forum lecture for the IGM on the research that informed House of Debt. A video is available here.

Christian Leuz Receives Accounting Research Prize
Christian Leuz

Christian Leuz has been selected as one of the three recipients of the 2014 Distinguished Contribution to Accounting Literature Award.

The award, given by the American Accounting Association for research that has had a significant impact across the discipline for a period of at least five years, honors Leuz and his co-authors, Dhananja Nanda and Peter Wysocki, both of the University of Miami School of Business for their paper, "Earning Management and Investor Protection: An International Comparison," published in 2003 in the Journal of Financial Economics.

Christian Leuz is the Joseph Sondheimer Professor of International Economics, Finance and Accounting at the University of Chicago Booth School of Business.

The American Accounting Association, founded in 1916, is the largest community of accountants in academia.

Read the Article » 

Read the Press Release from the American Accounting Association »

Learn More about This Award »


Matthew Gentzkow Awarded the 2014 John Bates Clark Medal

The American Economic Association has awarded Chicago Booth's Matthew Gentzkow the 2014 John Bates Clark Medal. The prestigious Clark Medal is awarded annually to the "American economist under the age of forty who is judged to have made the most significant contribution to economic thought and knowledge."

In awarding this prestigious prize to Professor Gentzkow, the AEA noted that he:

Matthew Gentzkow

has made fundamental contributions to our understanding of the economic forces driving the creation of media products, the changing nature and role of media in the digital environment, and the effect of media on education and civic engagement. He has thus emerged as a leader in a new generation of microeconomists applying economic methods to analyze questions that were historically analyzed by non-economists. His empirical work combines novel data, innovative identification strategies and careful empirical methods to answer questions at the interface of economics, political science, and sociology...

In summary, Gentzkow is a productive young economist who applies frontier methods in empirics and theory to an important set of questions. His skills span the full range of the discipline. He has been a pioneer in the area of media economics, defining questions appropriate to the changing media landscape. His work is creative without sacrificing quality. He has established himself as a role model in both substance and execution.

Matthew Gentzkow is Richard O. Ryan Professor of Economics and Neubauer Family Faculty Fellow; he is a director of Chicago Booth's Initiative on Global Markets.

Several papers that Professor Gentzkow and coauthors published for the IGM's working paper series were cited by the AEA in awarding him the Clark Medal. Links to these papers are available below:

What Drives Media Slant »

Ideological Segregation Online and Offline »

Competition and Ideological Diversity: Historical Evidence from US Newspapers »

The AEA's full announcement of its 2014 Clark Medal award, and a summary of Professor Gentzkow's contributions, can be found here.

Steven J. Davis and coauthors awarded the Addington Prize

Christian Leuz

Chicago Booth's Steven J. Davis, along with coauthors Nicholas A. Bloom and Scott R. Baker of Stanford University, have been awarded the Addington Prize in Measurement. The award is presented by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

Professor Davis and his coauthors received the award for their paper Measuring Economic Policy Uncertainty, which was based on research co-funded by Chicago Booth's Initiative on Global Markets.

"This ground-breaking report" said the Fraser Institute in its announcement, "develops the first rigorous analytical framework for measuring the extent and impact of economic policy uncertainty in the United States. The authors have since expanded their work to include Canada, Europe, China, and India."

Steven Davis is the William H. Abbott Professor of International Business and Economics and the Deputy Dean for Faculty.

Learn More about the Addington Prize »

Raghuram Rajan Receives Financial Times and Goldman Sachs Business Book of the Year Award

Raghur am RajanRaghuram Rajan's Fault Lines was chosen from among six top business books as the Financial Times and Goldman Sachs Business Book of the Year. The book's analysis is based in part on Rajan's 2005 presentation at the Jackson Hole Central Bankers Conference; it "identifies the flaws that helped cripple the world financial system, prescribes potential remedies, but also warns that unless policymakers push through painful reforms, the world could be plunged into renewed turmoil."

Raghuram G. Rajan is Eric J. Gleacher Distinguished Service Professor of Finance at the University of Chicago Booth School of Business.

Learn more about
Fault Lines »    

Other News

Read more about the Initiative on Global Markets events, the work of visiting fellows, or new insights revealed by faculty research.

Christian Leuz awarded Humboldt Research Award

Christian Leuz has been awarded a Humboldt Research Award. This prestigious award is given by the Alexander Von Humboldt Foundation in Germany "in recognition of a researcher's entire achievements to date." Accounting to the Foundation, the award honors "academics whose fundamental discoveries, new theories or insights have had a significant impact on their own field of specialization and beyond, and who are expected to continue producing cutting-edge achievements in the future."

Christian Leuz is the Joseph Sondheimer Professor of International Economics, Finance and Accounting at the University of Chicago Booth School of Business.

Learn More about Humboldt Research Award »

Christian Leuz Receives Prestigious AAA 2010 Notable Contributions to Accounting Literature Award

During the annual meeting of the American Accounting Association, professors Christian Leuz (Chicago Booth) and Luzi Hail (Wharton) were awarded the AAA's 2010 Notable Contributions to Accounting Literature Award. This esteemed award is given annually to research that displays "originality, breadth of potential interest, soundness of methodology, and potential impact on accounting education."

This year's award was given for Leuz and Hail's paper, "International Differences in the Cost of Equity Capital: Do Legal Institutions and Securities Regulation Matter?" The paper examines international differences in firms' cost of equity capital across 40 countries. Leuz and Hail analyze whether the effectiveness of a country's legal institutions and securities regulation is systematically related to cross-country differences in these capital costs. They find that countries with extensive securities regulation and strong enforcement mechanisms exhibit lower levels of cost of capital than countries with weak legal institutions, even after controlling for various risk and country factors. The effects are stronger in countries with capital markets that are globally less integrated.

Christian Leuz is Joseph Sondheimer Professor of International Economics, Finance and Accounting and Richard N. Rosett Faculty Fellow at the University of Chicago Booth School of Business.

Luzi Hail is an assistant professor of accounting at the Wharton School of the University of Pennsylvania.

Measuring Housing's Drag on the Economy

The New York Times
March 5, 2012
Coverage of the 2012 US Monetary Policy Forum

Here's a reminder about a problem that still doesn't get the attention that it deserves: Housing has blown a giant smoking hole in the middle of our economy, and the consequences continue to impede the pace of recovery. Read the Article »

Christian Leuz Receives 2011 Wildman Medal

Professor Christian Leuz was awarded the Deloitte Wildman Medal for excellence in accounting research at the American Accounting Association. Read More »

Credit-Default Swaps Get Their Shot at Redemption

American Banker
January 20, 2011

Imagine this: using credit-default swaps to solve "too big to fail." Too good to be true? Could a product vilified as a cause of the 2008 financial crisis provide the solution to an intractable policy problem of how to regulate the largest firms? Two professors have come up with an intriguing idea. And because it harnesses the power of the markets to do the regulating, rather than the federal government, it could catch on with newly empowered Republicans in Congress. Read the Article >

Withdrawal Symptoms

The Economist
September 3, 2009

How big an influence on spending is housing wealth? Hopes for a consumer revival in countries where house prices have slumped rest, in part, on the answer. A purist view is that the value of homes has no “wealth effect” on consumption. An increase in house prices only raises the future cost of shelter. Those about to trade down or sell out receive a windfall, but first-time buyers and those hoping to buy a bigger home are worse off. The overall effect on wealth is a wash. But even if that is correct, house-price increases may still have an impact as they create housing collateral for consumers who could not otherwise borrow. A study* by Atif Mian and Amir Sufi of the University of Chicago’s Booth School of Business pins down the size of this effect, using the credit records of almost 70,000 American borrowers. Read the Article »

Public Pensions Cook the Books

The Wall Street Journal
July 6, 2009

Robert Norvy-Marx and Joshua Rauh Find Significant Shortfalls in Public Employee Pension Plans. Read the Article »

The New Geither Plan is a Flop

Daily News Opinion
March 25, 2009
By Luigi Zingales

On Monday, the market rallied 7% at the announcement of Treasury Secretary's Timothy Geithner's plan to deal with banks' toxic assets. Should taxpayers celebrate as well? The answer is a resounding no.  Read the article>

The Fair Value Debate

Christian Laux and Christian Leuz provide a primer to help the public make sense of the recent debate over Fair Value accounting. Read More »

Potential Adoption of IFRS by the United States

Professor Christian Leuz, with his co-authors Luzi Hail and Peter Wysocki, analyzes the economic and policy factors related to the potential adoption of International Financial Reporting Standards (IFRS) in the US This report, which was requested by the FASB, was released March 11, 2009 in conjunction with the FASB's letter to the SEC's Roadmap for the Potential Use of Financial Statements Prepared In Accordance With International Financial Reporting Standards by US Issuers.
Read Summary »
View Report »

FASB Comment Letter »

Let's Stimulate Private Risk Taking

Wall Street Journal
January 21, 2009
By Alberto Alesina and Luigi Zingales

In virtually all economics classes, including those taught by the many excellent economists on the Obama team, the idea of government spending as an engine for growth is not a popular topic. Yet despite their skepticism of Keynesianism in the classroom, when it comes to public policy, these economists happily endorse a large stimulus package that could bring our deficit to 10% of GDP. Why? Read More »

Culture, Gender, and Math

SCIENCE Magazine
May 30, 2008

Professor Luigi Zingales' study suggests cultural factors may explain why boys do better in math. Read Article »

China and Wal-Mart: The True Champions of Equality

by Christian Broda
June 4, 2008

The US presidential campaign has sometimes sounded like a contest to prove who despises trade the most. Media reports of job losses to China and the destructive effect of Wal-Mart on local businesses are ubiquitous.  Read More »

Why Mr. Rajan Is Right

The Economist
April 10, 2008

An article headlined "Why Mr. Rajan is right" discussed Professor Raghuram Rajan's recommendations for reforming India's financial sector. "Financial sector reform is both a moral and an economic imperative," he argued in a report. The Economist responded: "He is right - and he deserves a lot more support than he is likely to get." Read More »

Luigi Zingales Named "Monster Economist"

Professor Luigi Zingales was named one of five "brilliant brains behind globalization," in an article published in Corriere della Sera. Read More »

China's Impact on Latin America

Associate Professor Christian Broda discusses how China's emergence as an economic superpower is having positive impact on South America. Read More »

Housing Bust Means at Least 12 More Months of Pain

March 2, 2008

It was only nine months ago that pundits, investors and government officials, argued that the US subprime mortgage crisis had been "contained." Read More »

Study Finds Wider Impact Of Mortgage Losses

Wall Street Journal
March 1, 2008

Mortgage losses, compounded by contemporary risk-management and accounting practices, could prompt banks and other lenders to shrink their lending and other assets by $2 trillion, a study concludes. Read More »

Tough CEOs Often Most Successful, a Study Finds

The Wall Street Journal
November 19, 2007

Research by professor Steven Kaplan, assistant professor Morten Sorensen, and PhD student Mark Klebanov was featured in the Theory & Practice column November 19. "What are the traits that chief executives of successful companies share?" the article began. "A new study suggests that hard-nosed personal virtues such as persistence and efficiency count for more than ‘softer' strengths like teamwork or flexibility." The article was headlined "Tough CEOs Often Most Successful, a Study Finds." A picture of Professor Kaplan accompanied the article. The Times of London also ran an item about the study.  Read Paragraph from Related IGM Research »

Losing Money Is a Crime

The Wall Street Journal
November 14, 2007

Research on corporate fraud by professor Luigi Zingales and assistant professor Adair Morse was featured in an article headlined "Losing Money Is a Crime." Professors Zingales and Morse found that 7 percent of public companies engage in some form of "material" (i.e., of interest to investors) lawbreaking each year, according to the article published November 14. Most of the fraud, "involves a misrepresentation of financial statements or breach of controls that was not motivated primarily by self dealing. The bulk of these involve overstated revenue and revenue expectations," their research found.  Read Paragraph from Related IGM Research »

Self-Appraisal Is Vital for CEOs Seeking a Successful Comeback

The Wall Street Journal Online
November 8, 2007

Research by professor Steven Kaplan on CEO turnover was featured in an article posted November 8. The return of dismissed CEOs is more common today because CEO turnover is increasing, Professor Kaplan found. The average tenure for company chief executives today is roughly six years, according to his research.
Read Paragraph from Related IGM Research »

Fed's Evans says US Economy to Pick up in 2008

October 22, 2007

Chicago Federal Reserve Bank President Charles Evans said on Monday that outside of housing the US economy is "moving forward," and that the Fed cannot afford to go soft on inflation. Read the Article »

Initiative on Global Markets Looks at Market Turmoil

Professors Cochrane, Kashyap and Rajan spoke at a Myron Scholes Global Markets Forum, sponsored by the Chicago Mercantile Exchange (CME) Trust and Chicago Council on Global Affairs, at the CME Auditorium September 25. on the dislocations in credit markets and offer their views on what has been happening and what policy makers can do. Read the Article »

Mexican-US Migration Could Flow Both Ways

Agustin Carstens, AM ’83, PhD ’85, secretary of finance and public credit of Mexico spoke at the Myron Scholes Global Markets Forum Series, which was co-sponsored by the Chicago Council on Global Affairs and funded by the CME Trust.

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