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Economics Insights @ CBS

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Economics Articles

GDP is an imperfect measure. Combining it with other indicators like labor market data makes it a little more informative, says Professor Veldkamp.
Economics and Policy

Is the U.S. in Recession? CBS Experts Weigh in on the Economic Outlook

New data has sparked a debate about the state of the economy. Here’s what some of our faculty members had to say.

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Economics Research

Inflation and the User Cost of Capital: Does Inflation Still Matter?

Authors
Darrel Cohen, Kevin Hassett, and R. Glenn Hubbard
Date
January 1, 1999
Format
Chapter
Book
The Costs and Benefits of Price Stability
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Firm Leverage, Consumer Demand, and Unemployment during the Great Recession

Authors
Xavier Giroud and Holger Mueller
Date
February 1, 2017
Format
Journal Article
Journal
The Quarterly Journal of Economics
We argue that firms' balance sheets were instrumental in the propagation of consumer demand shocks during the Great Recession. Using establishment-level data, we show that establishments of more highly levered firms exhibit a significantly larger decline in employment in response to a drop in consumer demand. These results are not driven by firms being less productive, having expanded too much prior to the Great Recession, or being generally more sensitive to fluctuations in either aggregate employment or house prices.
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An Economic Assessment of 'Fair Trade' in Coffee

Authors
David Zehner
Date
January 1, 2006
Format
Newspaper/Magazine Article
Publication
Chazen Web Journal of International Business
The price of coffee plunged by more than 50 percent between 1997 and 2001, driving millions of growers into poverty. Fair Trade is a much-heralded micro-economic response that allows coffee-producing cooperatives to sell directly to importers and roasters in the consuming countries, bypassing the customary network of middlemen in their own countries. Consumers of Fair Trade coffee typically pay a premium, and cooperatives are guaranteed a floor price. In this paper, the author argues that Fair Trade is unlikely to improve growers????????????
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Improving Labor Productivity: Human Resource Management Policies Do Matter

Authors
Marianne Koch
Date
May 1, 1996
Format
Journal Article
Journal
Strategic Management Journal
Despite the consistency with which the theoretical and normative connections between human resource management practices and firm-level performance outcomes are made, empirical studies that link the two are sparse. This paper presents results from a study of 319 business units that addresses this gap. Hypotheses are derived from a resource-based perspective on strategy. Positive and significant effects on labor productivity are found for organizations that utilize more sophisticated human resource planning, recruitment, and selection strategies.
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Competition and Competitiveness in a New Economy

Authors
Joseph Stiglitz
Date
January 1, 2002
Format
Chapter
Book
Competition and Competitiveness in a New Economy

There is perhaps no topic that is more important for the functioning of a market economy than competition policy. The theorems and analyses stating that market economies deliver benefits in the form of higher living standards and lower prices are all based on the assumption that there is effective competition in the market. At the same time when Adam Smith emphasised that competitive markets deliver enormous benefits, he also emphasised the tendency of firms to suppress competition.

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Economics Faculty

In the News

Insider
March 26, 2022

Cutting Russia out of the Global Economy Means Higher Prices, a Slower Recovery, and a Whole New Global Power Structure: 'We Don't Really Have a Playbook for How This Might Work'

Highlighted by Columbia Business School, this media piece showcases Topics and Areas of Expertise about our esteemed faculty. The content is specifically curated from the publication that showcased the mentioned faculty and/or research, emphasizing its contributions in various fields. The featured Topics and Areas of Expertise reflects the school's commitment to sharing valuable insights and knowledge.

Mentioned Faculty

Politico
July 4, 2022

No More Whispers: Recession Talk Surges in Washington

Highlighted by Columbia Business School, this media piece showcases Topics and Areas of Expertise about our esteemed faculty. The content is specifically curated from the publication that showcased the mentioned faculty and/or research, emphasizing its contributions in various fields. The featured Topics and Areas of Expertise reflects the school's commitment to sharing valuable insights and knowledge.

Mentioned Faculty

Columbia Business School

Charles Calomiris

Henry Kaufman Professor Emeritus of Financial Institutions in the Faculty of Business and Professor Emeritus of International and Public Affairs
Finance Division
The Financial Times
January 10, 2022

The Flaws in the Fed's Approach to Inflation

Highlighted by Columbia Business School, this media piece showcases Topics and Areas of Expertise about our esteemed faculty. The content is specifically curated from the publication that showcased the mentioned faculty and/or research, emphasizing its contributions in various fields. The featured Topics and Areas of Expertise reflects the school's commitment to sharing valuable insights and knowledge.

Mentioned Faculty

Frederic Mishkin

Frederic Mishkin

Alfred Lerner Professor of Banking and Financial Institutions
Economics Division
Marketplace Radio
November 1, 2021

Our Feelings about Jobs and the Economy Have Parted Ways

Highlighted by Columbia Business School, this media piece showcases Topics and Areas of Expertise about our esteemed faculty. The content is specifically curated from the publication that showcased the mentioned faculty and/or research, emphasizing its contributions in various fields. The featured Topics and Areas of Expertise reflects the school's commitment to sharing valuable insights and knowledge.

Mentioned Faculty

Laura Veldkamp

Laura Veldkamp

Leon G. Cooperman Professor of Finance & Economics
Finance Division

More in Economics

Professor Abby Joseph Cohen
Asset Management, Capital Markets and Investments, Economics and Policy

Trump’s Tariffs and Market Chaos: Abby Joseph Cohen Shares What Investors Need To Know

The veteran economist and CBS professor joined Professor Brett House to explore how erratic policymaking, rising tariffs, and politicized institutions are shaking global confidence in the U.S. economy.

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McKinsey’s Eric Kutcher on AI, Management Strategy, and Climate Innovation
Distinguished Speaker Series

McKinsey’s Eric Kutcher on AI, Management Strategy, and Climate Innovation

During a recent Distinguished Speakers Series event, the Senior Partner and Chair of North America at McKinsey shared leadership insights on AI business strategy, climate innovation, and the future of work.

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How Trump’s Tariffs are Threatening Global Economic Stability
Economics and Policy, Faculty Views, World Business

How Trump’s Tariffs are Threatening Global Economic Stability

Insights from Columbia Business School faculty explain how the president’s “Liberation Day” tariffs are fueling market volatility, undermining global economic stability, and impacting the Fed's ability to lower interest rates.

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When Economic Struggles Foster Self-Interest, Not Universal Compassion
Business and Society, Economics and Policy, Globalization, Management, Social Impact

When Economic Struggles Foster Self-Interest, Not Universal Compassion

A Columbia Business School study shows that experiencing a recession in young adulthood leads to lasting support for wealth redistribution—but mostly for one’s own group.

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Type
Journal Article
Date
2015
Journal
Social Psychological and Personality Science

The music of power: Perceptual and behavioral consequences of powerful music

Author
Hsu, Y., L. Huang, L. Nordgren, Derek D. Rucker, and Adam Galinsky

Music has long been suggested to be a way to make people feel powerful. The current research investigated whether music can evoke a sense of power and produce power-related cognition and behavior. Initial pretests identified musical selections that generated subjective feelings of power. Experiment 1 found that music pretested to be powerful implicitly activated the construct of power in listeners. Experiments 2–4 demonstrated that power-inducing music produced three known important downstream consequences of power: abstract thinking, illusory control, and moving first.

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Type
Journal Article
Date
2015
Journal
Harvard Business Review

The organizational apology

Author
Schweitzer, M., A. Brooks, and Adam Galinsky

At some point, every company makes a mistake that requires an apology — to an individual; a group of customers, employees, or business partners; or the public at large. And more often than not, companies and their leaders fail to apologize effectively, if at all, which can severely damage their reputations and their relationships with stakeholders. Companies need clearer guidelines for determining whether a mistake merits an apology and, when it does, for crafting and delivering an effective message.

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Type
Journal Article
Date
2015
Journal
Research on Organizational Behavior

The promise and perversity of perspective-taking in organizations

Author
Ku, G., C.S. Wang, and Adam Galinsky

Successful managers and leaders need to effectively navigate their organizational worlds, from motivating customers and employees to managing diversity to preventing and resolving conflicts. Perspective-taking is a psychological process that is particularly relevant to each of these activities. The current review critically examines perspective-taking research conducted by both management scholars and social psychologists and specifies perspective-taking's antecedents, consequences, mechanisms, and moderators, as well as identifies theoretical and/or empirical shortfalls.

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Type
Journal Article
Date
2015
Journal
Psychological Science

The sound of power: Conveying and detecting hierarchical rank through voice

Author
Ko, S., M. Sadler, and Adam Galinsky

The current research examined the relationship between hierarchy and vocal acoustic cues. Using Brunswik's lens model as a framework, we explored how hierarchical rank influences the acoustic properties of a speaker's voice and how these hierarchy-based acoustic cues affect perceivers' inferences of a speaker's rank. By using objective measurements of speakers' acoustic cues and controlling for baseline cue levels, we were able to precisely capture the relationship between acoustic cues and hierarchical rank, as well as the covariation among the cues.

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Type
Journal Article
Date
2015
Journal
IESE Insight

The ups and downs of managing hierarchies

Author
Galinsky, Adam and M. Schweitzer

Having a well-defined hierarchy can contribute to organizational effectiveness: it helps people know who does what, when and how, and promotes efficient interactions by setting clear expectations for the behaviors of people of different ranks. This is especially true when people feel under threat, helping to restore a sense of order and control. However, sometimes hierarchy can hurt as much as it helps. In complex, dynamic situations, leaders need access to the most complete and varied information to make the best decisions.

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