We found ways to shorten the turnaround time for diagnosing babies with HIV – Jónas Oddur Jónasson

MIT Sloan Asst. Prof. Jónas Oddur Jónasson

From The Conversation

They say timing is everything. And in sub-Saharan Africa, where roughly a third of untreated HIV infected babies die before they reach the age of one, a timely diagnosis is everything.

According to the latest UNAIDS data, 150, 000 children are infected with HIV in sub-Saharan Africa, annually. Due to the high number of children dying, diagnosing babies with HIV as early as possible is critical.

Public health officials have been grappling with this for many years. How can they reduce the time it takes to get newborns’ blood samples to the diagnostic lab and the test results back? This matters because it determines how soon babies can start medical treatment. The average turnaround time in sub-Saharan Africa often range from one to three months.

In general, shorter turnaround times can be achieved by improving the clinic-to-lab supply chain. This can happen through increasing the number of vehicles equipped to transport samples, hiring enough drivers, training enough medical personnel, buying the right type of diagnostic equipment, and improving communication systems.

African countries like Malawi and Nigeria have done this, with impressive results. Read More »

Join the #MITSloanExperts “The Truth Machine: The Blockchain and the Future of Everything” Twitter chat, February 28

The Truth Machine: The Blockchain and the Future of Everything, by Michael Casey and Paul Vigna

MIT Sloan’s Michael Casey and Wall Street Journal reporter Paul Vigna, authors of The Truth Machine: The Blockchain and the Future of Everything, will discuss their new book that examines applications of blockchain technology with the potential to provide new financial security, social change, and personal empowerment, during a Twitter chat on February 28th at 1 p.m. ET.

Michael Casey is a Senior Lecturer of Global Economics and Management at the MIT Sloan School of Management and Senior Advisor for the Digital Currency Imitative at MIT’s Media Lab, where he studies blockchain and its applications in the social and economic sectors. Additionally, Casey is a writer and researcher in the field of economics, finance, and digital-currency technology. Casey received his undergraduate degree from The University of Western Australia, his graduate diploma in Journalism from Curtin University of Technology and received his Master of Arts and English in 1994 from Cornell University.

Paul Vigna is a markets reporter for the Wall Street Journal, where he focuses on blockchain, bitcoin, and other cryptocurrency news. He has more than 25 years of experience in journalism and has authored three books to date. Vigna received his undergraduate degree from Fairfield University in 1990.

Casey and Vigna will discuss their work with Mark Hochstein, managing editor of CoinDesk and veteran business journalist with experience covering financial services and bitcoin innovations.

Join us on Twitter on February 28 at 1 p.m. ET, follow along using #MITSloanExperts, and potentially win a free copy of The Truth Machine: The Blockchain and the Future of Everything.

“The Future of American Innovation”– a podcast with David Schmittlein

MIT Sloan Dean David Schmittlein

MIT Sloan Dean David Schmittlein

MIT Sloan’s David Schmittlein appeared on CEO Global Foresight to discuss how the United States is leading world innovation in life sciences, information technology, and energy.

The segment was recently made available as an 8-minute podcast on the Innovation Gamechangers podcast, available on iTunes.

Dean Schmittlein also discusses innovation clusters and how the MIT community encourages a culture of collaboration and action learning. The program also includes interviews DARPA director Arati Prabhakar and Carl Dietrich, an MIT alumnus and CEO of flying car company Terrafugia.

Listen to Innovation Gamechangers podcast, available on iTunes.

David Schmittlein is the John C Head III Dean and Professor of Marketing at the MIT Sloan School of Management.

How financial regulation of public companies can negatively impact nonpublic entities – Andrew Sutherland

Andrew Sutherland

MIT Sloan Assistant Professor Andrew Sutherland

The passage of Sarbanes-Oxley (SOX) was big news for public companies, but there was little discussion or analysis about what it meant for private firms, nonprofits and governmental entities. Yet those nonpublic entities needed to purchase accounting services from the same pool of independent auditors. It turns out that shocks to public companies from SOX significantly affected supply for the entire audit services market.

In a recent study, my colleagues and I looked at these developments and found that SOX had several negative spillover effects for nonpublic entities. Overall, audit fee increases for nonpublic entities more than doubled. Many others were forced to switch to a different auditor.

Why is this a big deal if those groups aren’t legally required to hire independent auditors? It’s important because nonpublic entities still have substantial financial reporting needs. For example, organizations use audits to establish payments plans with vendors and suppliers or to demonstrate creditworthiness to banks. Charities use audits to show they are responsibly spending donors’ money.

Here is a breakdown of the spillover effects: Read More »

Wider and direct access to financial market infrastructure is the next step for a more competitive financial market – Haoxiang Zhu

MIT Sloan Assc. Prof. Haoxiang Zhu,

From ProMarket

As of Saturday, January 13, all EU member states were to fully implement the revised Payment Services Directive, known as PSD2.1) Among other things, PSD2 allows third-party payment service providers to gain access to customers’ bank accounts (with the customers’ consent, of course), and customers’ banks are required to provide API connection for identity verification. Its potential impact should not be underestimated. For example, under PSD2, customers and merchants can, in principle, cut credit cards and debit cards out of their transactions, saving significant costs along the way. In addition, banks can no longer “own” their customers’ account data or prevent competitors from accessing them.

The EU’s PSD2 is a major development in payments and financial market infrastructure, a once-sleepy “back-office” function that is now alive and kicking. The essence of PSD2 is to encourage competition and reduce the information advantages of incumbent banks. Likewise, the Bank of England announced in July 2017 that non-bank payment service providers can become direct settlement participants in the UK’s payment system, as long as certain requirements are met.

Access to financial market infrastructure such as payment systems has important implications for market competition. The study of industrial organization shows that competition is reduced by vertical integration. A vertically integrated incumbent that produces both “upstream” and “downstream” goods can effectively reduce competition in the downstream market if its stand-alone competitors rely on the incumbent for providing the upstream good.2) Financial market infrastructure is the ultimate upstream good for almost all economic activities. Privileged access to market infrastructure makes banks “special” and, in some situations, may encourage anticompetitive behavior. Good examples to keep in mind include two antitrust class lawsuits in over-the-counter derivatives markets in which investors accused dealer banks of, among other things, using their unique positions as clearing members in OTC derivatives to shut off new entrants that aim to compete with dealer banks in the transaction of these derivatives.3) One of these lawsuits has been settled, with dealer banks paying $1.86 billion. Read More »