Economics
Friendship Ambassador Award Gala: US – China People’s Friendship Association
By Dayuan Peter Liu – On Friday October 28, 2016, at the Kim Son Downtown Ballroom, the US-China People’s Friendship Association (USCPFA) Houston Chapter hosted the 10th Annual Friendship Ambassador Award Gala. The University of St. Thomas is a Silver Sponsor of this event and has been in a good relationship with USCPFA for many…
Read MoreAdvertising and Economics
By Dr. Hassan Shirvani–Advertising is an important feature of our daily economic life. As we watch TV, listen to radio, read newspapers and magazines, and use social media, we are constantly bombarded with advertisements. For this “privilege,” we are asked to pay some $325 billion per year, roughly 2 percent of our annual national income. Given this heavy demand of advertising on our…
Read MoreInsight from Former Treasury Secretary Lawrence H. Summers: Global Perspectives Speaker
By Jeffrey Coburn—On September 27, 2016, the Federal Reserve of Dallas, Texas, held its Global Perspectives Speaker Series, featuring Former Treasury Secretary Lawrence H. Summers. I was interested in going to the event because I want to learn more about financial economics and international economics, and two of the CSB professors, Dr. Hassan Shirvani and…
Read MoreHow to Succeed in the Cameron School of Business: An Insider’s Scoop
Whether a student is a first generation college student or comes from a long line of college graduates, college can be a new world of experiences and challenges for students. Many times students aren’t aware of the skills, behaviors, and habits that can make or break their academic career. The Cameron School of Business is…
Read More15 Days in Cuba: A Unique Study Abroad Experience
By Barbara Bordon –After the relaxing of the US embargo to Cuba in 2016, the island has received a considerable number of US travelers. The University of St. Thomas organized a study abroad trip to Cuba in August, and there were several undergraduate and graduate students interested in enrolling. I was not the exception. As…
Read MorePsychology and Economics
By Dr. Hassan Shirvani—Among the collateral damages of the recent global economic crisis has been the reputation of the economics profession whose members famously failed to anticipate the financial tsunami that rocked the world. Enmeshed in their complex mathematical models with their highly unrealistic assumptions, most economists were seemingly as stunned by the suddenness and the severity of the economic downturn as the average person on the street. Even Queen Elizabeth of England, on…
Read MoreSchumpeter on Entrepreneurship
By Dr. Hassan Shirvani –Since the great Austrian economist Joseph Schumpeter (1883-1950) introduced the concept of entrepreneurship into economics almost a century ago, economists have struggled to systematically incorporate this concept into their models of economic development, with only limited success. As a result, the initial enthusiasm over the unique role of entrepreneurs as heroic…
Read MoreA Mathematical Gem from Euler
By Dr. Hassan Shirvani–The Swiss mathematician Leonhard Euler (1707–1783) is widely considered as one of the greatest mathematicians who ever lived. He made fundamental and path-breaking contributions to many areas of mathematics and physics. In the following example, Euler displays the inspired ease with which he managed to crack some of the most difficult mathematical…
Read MoreCan There Be Too Much Finance?
By Dr. Pierre Canac –Finance certainly plays an indispensable and positive role in promoting economic growth and overall employment. However there is some evidence that the relationship between financial development and GDP growth is not linear, but instead has an inverse U-shape. As the size of the financial sector gets larger, at first GDP growth…
Read MoreA Critique of Behavioral Finance
By Dr. Hassan Shirvani—The recent global financial crisis has raised serious questions about the rationality of the securities markets. In rational markets, prices tend to closely track their fundamental values, so that there is little or no chance of getting price bubbles. During the run-up to the recent crisis, however, many asset prices, including those in the housing sector, seemingly deviated from their correct values, resulting in subsequent financial crashes around…
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