Finance in Society: Markets and Behavior

Saturday, January 11, 11 a.m.

This panel brings together leading thinkers in academia and practice to reflect on the larger role of finance in society. They will discuss the future of financial markets, institutions, and contracts from the perspective of how they contribute to society now and tomorrow. The goal of the conversation is to help set an agenda for financial education at Yale SOM that is forward-looking, reflective of the relation between finance and society, and effective in preparing our students to meet the challenges of the future.

Read a preliminary discussion among the panelists. 

Moderator
William N. Goetzmann YC '78, '86, PhD '90
Edwin J. Beinecke Professor of Finance and Management & Director of International Center for Finance, Yale School of Management 

Panelists
Zhiwu Chen PhD '90
Professor of Finance, Yale School of Management

Jane Mendillo YC '80, '84
President & CEO, Harvard Management Company, Inc.

Robert Shiller
Sterling Professor of Economics, Yale University, Professor of Finance, Yale School of Management

David Swensen PhD '80
Chief Investment Officer, Yale University
 

Biographies

William N. Goetzmann William N. Goetzmann William N. Goetzmann YC '78, '86, PhD '90

Edwin J. Beinecke Professor of Finance and Management & Director of International Center for Finance
Yale School of Management

William Goetzmann is the Edwin J. Beinecke Professor of Finance and Management Studies and the Director of the International Center for Finance at the Yale School of Management, where he has been since 1994. He has taught investments, real estate and financial history among other classes. From 1990 to 1994 he taught investments and real estate at Columbia Business School.

Goetzmann is an expert on a diverse range of assets, including stocks, bonds, mutual funds, hedge funds, real estate and art. His research topics include asset pricing, the equity risk premium, arbitrage strategies, selecting investment managers, global investing and financial history. His work has been featured in most of the major financial news publications and his academic research has been published in all of the major academic finance journals.

His published books include: The Origins of Value: The Financial Innovations that Created the Modern Financial Markets (Oxford, 2005), The Equity Risk Premium: Essays and Explorations with Roger Ibbotson. (Oxford, 2006), Modern Portfolio Theory and Investment Analysis, with Elton, Gruber & Brown, (John Wiley and Sons, 2006 and following) and The West of the Imagination, with W.H. Goetzmann, (Oklahoma, 1986 & 2009). His most recent edited volume is The Great Mirror of Folly, Finance, Culture, and the Crash of 1720 (Yale University Press, forthcoming).

His current work focuses on endowments, financial history, operational risk, securitization, credit risk and behavioral finance.

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Zhiwu Chen Zhiwu Chen Zhiwu Chen PhD '90

Professor of Finance
Yale School of Management

Professor Zhiwu Chen is an expert on finance theory, securities valuation, emerging markets, and China's economy and capital markets. Dr. Chen started his career by publishing research papers in top economics and finance journals on topics related to financial markets and theories of asset pricing. Around 2001, Dr. Chen began to expand his research focus by going beyond mature markets and investigating market development and institution-building issues in the context of China’s transition process and other emerging markets. What institutions are necessary for markets to develop? Why is finance important for society? How does financial development affect social structure and individual freedom? His work has been featured in newspapers and magazines in the United States, Hong Kong, China and other countries. He is a frequent contributor to media publications in China on topics of economic policy, market development and legal reform. His list of books published in China includes: How Is Wealth Created? (2005), Media, Law and Markets (2005), Why Are the Chinese Industrious and Yet Not Rich? (2008), Irrational Overconfidence? (2008), The Logic of Finance (2009), 24 Wealth Lectures (2009), and Assessing China’s Economic Growth of the Past 30 Years (2010).

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Jane Mendilo Jane Mendilo Jane Mendillo YC '80, '84

President & CEO
Harvard Management Company, Inc.

Jane Mendillo became President and Chief Executive Officer of Harvard Management Company (HMC) on July 1, 2008. Since rejoining HMC, Jane has reoriented and grown HMC’s investment platform and organization to position the portfolio for continued long-term success.

Ms. Mendillo returned to HMC after serving as Chief Investment Officer of Wellesley College from 2002-2008, where she built the college's first investment office and restructured its investment portfolio.

Prior to Wellesley, Ms. Mendillo spent 15 years at HMC where her responsibilities included oversight of all of the portfolio’s outside-managed assets as Vice President of External Management, after serving as a key member of the Internal Equity and Private Equity management teams.

Ms. Mendillo earned her BA and MBA degrees from Yale University. She began her business career as a management consultant with Bain & Company in Boston. She is a Chartered Financial Analyst and a member of the Boston Security Analysts Society, Inc., the Boston Committee on Foreign Relations and the Boston Economic Club and serves as a member of the Board of Directors for the Boston Foundation. She also serves on the Investment Committees at Partners Healthcare and the Rockefeller Foundation.

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Robert Shiller Robert Shiller Robert Shiller

Sterling Professor of Economics, Yale University
Professor of Finance, Yale School of Management

Robert J. Shiller is Sterling Professor of Economics, Department of Economics and Cowles Foundation for Research in Economics, Yale University, and Professor of Finance and Fellow at the International Center for Finance, Yale School of Management. He received his B.A. from the University of Michigan in 1967 and his Ph.D. in economics from the Massachusetts Institute of Technology in 1972. He has written on financial markets, financial innovation, behavioral economics, macroeconomics, real estate, statistical methods, and on public attitudes, opinions, and moral judgments regarding markets. He was awarded the Nobel Prize in Economic Sciences in 2013.

His 1989 book Market Volatility (MIT Press) is a mathematical and behavioral analysis of price fluctuations in speculative markets. His 1993 book Macro Markets: Creating Institutions for Managing Society's Largest Economic Risks (Oxford University Press) proposes a variety of new risk-management contracts, such as futures contracts in national incomes or securities based on real estate that would permit the management of risks to standards of living. His book Irrational Exuberance (Princeton 2000, Broadway Books 2001, 2nd edition Princeton 2005) is an analysis and explication of speculative bubbles, with special reference to the stock market and real estate. His book The New Financial Order: Risk in the 21st Century (Princeton University Press, 2003) is an analysis of an expanding role of finance, insurance, and public finance in our future. His book Subprime Solution: How the Global Financial Crisis Happened and What to Do about It, published in September 2008 by Princeton University Press, offers an analysis of the housing and economic crisis and a plan of action against it. He co-authored, with George A. Akerlof, Animal Spirits: How Human Psychology Drives the Economy and Why It Matters for Global Capitalism published in March 2009 by Princeton University Press. His latest book, Finance and the Good Society, was published in April 2012 by Princeton University Press.

His repeat-sales home price indices, developed originally with Karl E. Case, are now published as the S&P/Case-Shiller Home Price Indices. The Chicago Mercantile Exchange now maintains futures markets based on the S&P/Case-Shiller Indices.

He writes a regular column "Finance in the 21st Century" for Project Syndicate, which publishes around the world, and "Economic View" for The New York Times.

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David Swensen David Swensen David Swensen PhD '80

Chief Investment Officer
Yale University

David Swensen, Yale’s Chief Investment Officer, oversees $20.0 billion in Endowment assets and several hundreds of millions of dollars of other investment funds. Under his stewardship during the past 27 years the Yale Endowment generated returns of 13.9 percent per annum, a record unequalled among institutional investors. Mr. Swensen leads a staff of 27, located near the University’s campus in downtown New Haven.

Prior to joining Yale in 1985, Mr. Swensen spent six years on Wall Street – three years at Lehman Brothers and three years at Salomon Brothers – where his work focused on developing new financial technologies. At Salomon Brothers, he structured the first swap, a currency transaction involving IBM and the World Bank. Mr. Swensen authored Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment and Unconventional Success: A Fundamental Approach to Personal Investment, both published by The Free Press, an imprint of Simon & Schuster. His books have been translated into Chinese, Japanese, Korean, German, French, Spanish and Italian.

Mr. Swensen has won numerous awards, including: in 2012, the Yale Medal for outstanding individual service to the University; in 2008, a fellowship in the American Academy of Arts & Sciences; in 2007, the Mory’s Cup for conspicuous service to Yale; in 2007, the Hopkins Medal for commitment, devotion and loyalty to Hopkins School; and in 2004, the Inaugural Institutional Investor Award for Excellence in Investment Management. At Yale, where he teaches students in Yale College and at the School of Management, he is a Fellow of Berkeley College, an Incorporator of the Elizabethan Club, and a Fellow of the International Center for Finance.

Mr. Swensen advised the President of the United States as a member of the President’s Economic Recovery Advisory Board. He served as trustee or advisor to the Brookings Institution, Cambridge University, the Carnegie Corporation, the Carnegie Institution of Washington, the Hopkins School, TIAA, the New York Stock Exchange, the Howard Hughes Medical Institute, the Courtauld Institute of Art, the Yale New Haven Hospital, the Investment Fund for Foundations, the Edna McConnell Clark Foundation and the States of Connecticut and Massachusetts.

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