Twitter Chat recap with Georgina Campbell Flatter — #MITIdea2Impact

Georgina Campbell Flatter, MEng (Oxon) SM, is the Executive Director of the MIT Legatum Center for Development and Entrepreneurship at MIT and Lecturer in Technological Innovation, Entrepreneurship, and Strategic Management at the MIT Sloan School of Management

Georgina Campbell Flatter, MEng (Oxon) SM, is the Executive Director of the MIT Legatum Center for Development and Entrepreneurship at MIT and Lecturer in Technological Innovation, Entrepreneurship, and Strategic Management at the MIT Sloan School of Management

The MIT Legatum Center for Development and Entrepreneurship together with the MIT Sloan Office of International Programs (OIP) will bring together entrepreneurs, policymakers, and philanthropists from around the world next week to accelerate global change through innovation-driven entrepreneurship – a powerful mechanism for alleviating poverty and generating prosperity.

MIT Sloan Experts participated in a Twitter chat with Georgina Campbell Flatter MS MEng, Executive Director, MIT Legatum Center for Development & Entrepreneurship, Lecturer in Technological Innovation, Entrepreneurship, and Strategic Management and  Chris Stokel-Walker, a dynamic writer for The EconomistThe Guardian and The New Statesman.

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Join Georgina Campbell Flatter for a Twitter chat on accelerating global change through innovation-driven entrepreneurship and finance

mit_london_2016

On December 13 in London, the MIT Legatum Center for Development and Entrepreneurship together with the MIT Sloan Office of International Programs (OIP) will bring together entrepreneurs, policymakers, and philanthropists from around the world to accelerate global change through innovation-driven entrepreneurship – a powerful mechanism for alleviating poverty and generating prosperity.

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The heavy burden of being labelled systemically important — Robert Pozen

MIT Sloan Senior Lecturer Robert Pozen

MIT Sloan Senior Lecturer Robert Pozen

From Financial Times

Almost everyone would agree that large banks like JPMorgan and Citigroup should be classified as Sifis — the melodious acronym for systemically important financial institutions, whose failure would produce widespread shocks to the financial system.

To reduce the chances of failure, regulators have imposed a broad array of extra requirements for capital, liquidity and risk controls on these Sifis.

The need for these requirements is less clear for two other categories of financial institutions currently labelled as Sifis: midsize regional banks and large insurance companies. Both types of institutions have been unsuccessful in getting their Sifi label dropped by regulators or legislators.

However, activist hedge funds have taken a more fruitful tack, pushing for structural changes to avoid the label at some midsize banks and large insurers.

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Robots are moving in to our homes, but there’s no killer app – Elaine Chen

MIT Sloan Senior Lecturer Elaine Chen

MIT Sloan Senior Lecturer Elaine Chen

From The Conversation

Not too long ago, robots were giant, caged things, mainly found in automotive manufacturing lines. Social robotics was a new field of research pursued by the best and brightest in university research labs.

In the past few years, however, it seems that social robots have finally come of age. All of a sudden, the market is teeming with products. Some are distinctly humanoid.

The rise of social robots

Softbank Robotics’ Nao, Pepper and Romeo all have a head and two arms. With their stylised designs, they deftly avoid the “uncanny valley” of human-machine interfaces (realistic enough to look human, but non-human enough to look spooky).

Others are more subdued in their anthropomorphism. Blue Frog Robotics’ Buddy sports an animated face on a screen, and scoots around on wheels. Jibo is yet more subtle in its ability to evoke humanity, with its stationary base and a head that can turn and nod.

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International trade and household debt: How import competition from China helped fuel the credit bubble of the 2000s – Jean-Noël Barrot, Erik Loualiche, Matthew Plosser, Julien Sauvagnat

MIT Sloan Assistant Professor Jean-Noël Barrot

MIT Sloan Asst. Prof. Jean-Noël Barrot

MIT Sloan Assistant Professor Erik Loualiche

MIT Sloan Asst. Prof. Erik Loualiche

From Vox

In the years preceding the Great Recession, there was a dramatic rise in household debt (e.g. Mian and Sufi 2009) and an unprecedented increase in import competition. This competition was triggered by the expansion of China and other low-wage countries in global markets, and had substantial labour market consequences (Autor et al. 2013, Autor et al. 2014, Pierce and Schott, 2016). There is a striking break and a dramatic acceleration of both trends at the turn of the century.

We hypothesise that these two phenomena were intimately linked, and that the impact of import competition on labour markets affected household debt expansion from 2000 to 2007.

More precisely, we argue that the displacement of domestic production by imports fuelled demand for credit in impacted areas.

We examine this hypothesis using a large, nationally representative panel dataset of anonymous consumer credit records, the Federal Reserve Bank of New York’s Consumer Credit Panel/Equifax Data (CCP), HMDA as well as a longitudinal survey, the PSID. We exploit cross-regional variation in exposure to import competition to study the impact of import penetration on household liabilities.

More precisely, we use variation in exposure to international trade driven by historical industry composition at the commuting-zone level. To capture exposure to import competition, we build on prior work (Barrot et al. 2016) and use industry-level shipping costs (SC), obtained from import data and computed as the mark-up of Cost-Insurance-Freight over the price paid by the importer. We find shipping costs to be a strong predictor of the increase in import penetration. In Figure 1 we decompose Chinese import penetration to the US into high, medium, and low shipping cost industries. Most of the dramatic increase in Chinese import penetration in the 2000s is concentrated in low-shipping-cost industries.

Read the full post at Vox.

Jean-Noël Barrot is the Alfred Henry and Jean Morrison Hayes Career Development Professor and an Assistant Professor of Finance at the MIT Sloan School of Management.

Erik Loualiche is an Assistant Professor of Finance at the MIT Sloan School of Management.