Most investing success is short lived, but venture capital is an exception, with top VCs beating the average year after year. A new study finds that consistent returns owe as much to a firm’s reputation and early luck as the smarts of its employees.
Professor Roger Ibbotson, an influential scholar and practitioner of finance for decades, sat down for a conversation with Professor William Goetzmann about his groundbreaking work on the historical returns of the stock market, his experiences as a teacher, and his current research.
In an analysis of the Great Recession, Yale SOM's Paul Goldsmith-Pinkham and his co-authors found that states with more generous bankruptcy policies lost fewer local jobs. And the ripple effects of additional debt relief during that period spread nationwide, increasing employment by up to 2%.
Leverage-induced fire sales contributed to the worst stock market crashes in history. Prof. Kelly Shue studied account-level data from the Chinese market crash in 2015 to illuminate how much leverage matters.
Using extensive data on Uber drivers, Yale SOM’s Judith Chevalier and her co-authors examined their driving patterns to understand the economic value of flexible scheduling. They found that rideshare drivers would have to earn as much as double to accept less-flexible arrangements.
President Trump recently announced his intention to appoint two well-known conservative figures—Stephen Moore and Herman Cain—to the Federal Reserve Board of Governors. We asked Prof. Andrew Metrick about the qualities of an effective Fed governor.