Economic Crisis
Liechty in Nature Magazine: Scientists, Bankers Must Unite to Prevent Financial Crises
A recent column written by John Liechty, professor of marketing and statistics at Smeal and Director of the Center for the Study of Global and Financial Stability, appearing in the latest issue of Nature calls for collaboration amongst scientists and bankers to help forestall future financial crises. Liechty discusses how scientists can work with regulators and bankers to create new financial models that have the potential to identify system-wide risks.
Video: What Leads Firms to Engage in Illegal Actions?
Tim Pollock discusses factors that affect the likelihood of firms engaging in illegal behavior, such as a firm’s internal aspirations, external expectations, and prominence. Pollock’s suggests ways investors and regulators can use this information to monitor firms and his results explain why even “good” firms do bad things.
No Evidence for 'Too Big To Fail' Policies
The U.S. economy would be better served by letting failing firms file for bankruptcy rather than by bailing them out under presumptive federal policies that deem them to be "too big to fail," according to new research from Penn State's Smeal College of Business.
