Research

Barber Helps Campus Understand the Economic Crisis

Former Federal Reserve Chairman Alan Greenspan has called the current global financial crisis a “once-in-a-century” event. To help put the economic turmoil in historical perspective and shed light on market behavior over the long term, Professor Brad Barber joined a panel of UC Davis faculty experts at “Understanding the Financial Crisis,” an October 17 forum hosted by the UC Davis Institute of Governmental Affairs.

The panel included Alan Taylor, professor of economics and director of the Center for the Evolution of the Global Economy and Eric Rauchway, professor of history and director of the Society for History Society and Culture. The panel agreed that many aspects of this crisis are repeats of history and that the government bailout was a necessary reaction to the current situation. However, the panelists voiced concern that the bailout plan does not have enough regulatory teeth and in the end Americans will get little return.

Barber focused on the anatomy of bear markets, contending that the market is dynamic and has always experienced highs and lows. He said individual financial decisions hold both risks and rewards. Barber showed that over the long term, the total stock market has returned substantial value, despite repeated peaks and valleys.

Breaking Down Paradigms at Prestigious Santa Fe Institute

As an authority on investor psychology and behavior, Barber was among an eclectic group of innovative environmental biologists, physicists, ecologists and economists from the U.S. and abroad brought together by the Santa Fe Institute last summer for a week-long colloquium titled “First Steps toward Understanding Market Ecologies.”

The institute’s primary interest is to break down common paradigms in understanding the world and promote unconventional approaches to gathering knowledge and solving problems. Research methodologies ranged from ecological understandings of market behavior to microeconomics.

Among those at the July 28- August 1 meeting was George Sorros, a successful speculator, philanthropist and political activist, whose interests include funding transformative research. He is known to be critical of traditional economic modeling in regards to understanding markets and supports innovative research like Barber’s. Other participants included Bill Miller, the chairman and chief investment officer of Legg Mason Capital Management, and John Geanakoplos, professor of economics at Yale University.

Barber’s research is a deductive approach to understanding markets motivated by general economic theories of how financial markets work, while other researchers at the conference use a more bottom-up inductive approach based on empirical observation of market participants. Barber presented his research on Taiwan’s financial markets, which was based on his article in The Review of Financial Studies, published in April 2008. Barber and his co-authors analyzed the behavior of equity traders, including day traders, in Taiwan’s stock market, the world’s12th largest. According to his findings, some common behaviors that promote individual losses are traders’ overconfidence, aggressive buying behavior and unrealistic impressions of their knowledge about the market.

Commands

Twitter Feed

Loading tweets...

News Release

UC Davis Part-Time MBA Ranked in Nation’s Top 9%
Fourth Consecutive Year among U.S News & World Report's Premier Programs

(Davis, CA) — The UC Davis Part-Time MBA program offered in Sacramento and the San Francisco Bay Area is ranked among the top 9% in the U.S., according to U.S. News & World Report’s latest graduate business school rankings.

At No. 29, this is the fourth consecutive year the UC Davis Part-Time MBA program is among the top AACSB International-accredited part-time MBA programs surveyed. This year, there were 323 part-time MBA programs surveyed.

News Release

UC Davis Full-Time MBA Ranked among Nation’s Premier Programs for 20th Consecutive Year
MBA Programs among Top 10% in U.S.
Record Salary and Bonus

Image of UC Davis Full-Time MBA Ranked among Nation’s Premier Programs for 20th Consecutive Year

(Davis, CA) — The UC Davis Graduate School of Management’s Full-Time MBA program is ranked among the premier business schools in the nation for the 20th consecutive year, according to U.S. News & World Report’s latest graduate business school rankings released today.

U.S. News’ latest ranking places the Full-Time MBA program at No. 48, placing it among the top 10% of the 464 Association to Advance Collegiate Schools of Business International’s accredited full-time MBA programs surveyed.

Key statistics from the School’s Full-Time MBA ranking include:

News Release

UC Davis Graduate School of Management partners with Lawrence Livermore and Sandia National Labs to drive technologies from lab to market

Image of UC Davis Graduate School of Management partners with Lawrence Livermore and Sandia National Labs to drive technologies from lab to market

(Davis, Calif.) – With a joint goal of speeding the transfer of new technologies from the laboratory to the commercial marketplace, the UC Davis Graduate School of Management, Lawrence Livermore National Laboratory and Sandia National Laboratories have announced a new partnership for researchers to develop their entrepreneurial skills.

Spotlight Story

Vickie Sherman MBA 13 Finds Her Passion, Her Career—and Herself

Image of Vickie Sherman MBA 13 Finds Her Passion, Her Career—and Herself

What opportunities, decisions, events have shaped your professional life?

My career path has been a climb across a jungle gym rather than a tangent up a corporate ladder. As a child, I used to thumb through the three-inch JCPenney catalogue, picking out the professional women who I would grow to be. I wanted to rule the world from a corner office in a suit and heels. I wanted to shed my humble origins and become Corporate Barbie.

Spotlight Story

MBA Student Consultants Make an IMPACT
Projects Put Business Needs Front and Center

Image of MBA Student Consultants Make an IMPACT

Agilent Technologies’ Electronic Measurement Group is a $3.6 billion business that over the past decade has seen a dramatic shift in its customer base from U.S., and Western European customers to predominantly Asia-based customers. Today, the majority of the division’s revenues are generated outside of the U.S., with an increasing concentration in China.