Black Swans and Other Challenges to Rational Decision Making
When trying to figure out the outcome of a given situation, or the fallout of a sudden event, is it better to reason by analogies and resort to past experience or to think ahead and apply probabilistic reasoning? Researchers present a new mathematical model on making decisions in uncertain circumstances, which takes into account both modes of reasoning.
Managing change and uncertainty
How to Build Business and Career Resilience
The world is constantly evolving and uncertain. However, if there is one certainty it is the need to remain humble. To better build the resilience needed to manage this change and uncertainty in a responsible way, find key findings and classic advice from HEC Paris researchers to decipher environments at all levels: from one’s own career to geopolitical business links. In this issue, you will learn that family businesses focus more on resilience than on performance, that connecting private interests and sharing with the community is vital for sustainable objectives and that developing professional and personal resilience takes practice. You will also discover how hybrid governance and smart cities can overcome disrupted supply chains and fight social inequality.
Should We Ban Monetary State Financing?
Does monetary financing undermine fiscal discipline, as suggested by legal bans on monetary financing in many jurisdictions? No, according to Professors Armin Steinbach and Oliver Hülsewig, who have studied empirically the impact of unconventional monetary policy throughout the euro crisis. The results cast doubt on categorical prohibitions on monetary financing and call for less concerns in coordinating monetary and fiscal policy -- an insight that might continue to be relevant during COVID-struck economy.
Trust in Scientists Key to Compliance with Pandemic Policies
As the world faces a new COVID-19 variant and infections rise in many parts of the globe, adherence to pandemic restrictions and vaccination policies — considered by scientists to be essential to controlling the pandemic — has been uneven, sometimes openly hostile. A new study sheds light on key factors to instilling citizen trust and compliance with public health measures.
Inflation Rears its Ugly Head: Why? And What Could be the Consequences?
The upswing in inflation figures on both sides of the Atlantic, called “reflation”, continues to worry governments and the public. But what is behind these inflationary pressures? What are the consequences of this 13-year-high in the euro zone (4.1% in October); and 30-year record surge in prices in the United States? To find out what caused these increases and to analyze what could happen in the future, we’ve turn to two HEC academics whose research is linked to the inflation question. Associate Professor Eric Mengus specializes in monetary and macro-economics. His colleague, Associate Professor Gaetano Gaballo, is a researcher in the same domains, and he’s also worked for seven years as a senior economist at the Banque de France. In mid-October, they reflected on a wide range of issues linked to reflation.
HEC Paris Trains Future Professors
Our PhD Students Got Talent
This special issue aims to show the excellence and diversity of the research conducted by HEC Paris PhD candidates and alumni. You will find a selection of cutting-edge findings, answering crucial questions such as: Is AI a threat to human creativity? Should we listen to the Wall Street gurus? How to better manage one’s promotion? How much do we value our private data? What are ambiguity and risk attitudes? How bad is the mere presence of a phone? HEC Paris PhD Program, headed by finance professor Johan Hombert, supports its students throughout their thesis writing and job placement in the best universities and business schools, such as the MIT, Wharton and Harvard Business School. Most PhD alumni continue to collaborate with professors at HEC, thanks to the strong relationships they have developed during their journey.
Economic Perspectives for Germany after September’s Federal Vote
The September 26 federal elections in Germany have been earmarked as one of its most important in the past two decades. For a start, it signals the end of Angela Merkel’s tenure as Chancellor, after 16 years at the helm of Europe’s largest economy. To comment on this landmark vote, its uncertain outcome, and economic outlook, we turn to Armin Steinbach, HEC professor in law and economics. Steinbach is ideally placed to comment: prior to his September arrival at our business school, he spent over a decade as a government official and adviser in the Ministries of Finance and of Economic Affairs and Germany’s Parliament.
Why Student Debt Relief May Fall Short of Its Good Intentions
As the U.S. staggers beneath the weight of its education debt – a crushing $1.6 trillion in 2020 – there are increasing calls for loan forgiveness. But debt forgiveness plans need to be crafted carefully or they might actually disproportionately favor high-income individuals or specific ethnic groups. A duo of Finance researchers, Sylvain Catherine of Wharton School and Constantine Yannelis of Chicago Booth School of Business, explains how to tailor such policies to better redistribute their benefits. Sylvain Catherine is a HEC Paris PhD alumnus.
Jean-Noël Barrot: Building Bridges between Research and Politics
Jean-Noël Barrot is an associate professor at HEC Paris and member of parliament for Yvelines in France’s National Assembly, combining his political work with his research in finance. On June 29, he submitted a report to the government in which he detailed proposals to help France recover from the COVID-19 pandemic. In this interview, Jean-Noël Barrot explains how he manages to combine his research and his role in parliament in an effective way.