Two of the highlights of my job are teaching MSc students and the supervision of PhD students (click here), who have typically come from an MSc course. One of the problems facing British universities is that there is inadequate funding for students to undertake taught postgraduate courses as well as PhDs. There is no systematic funding of postgraduate study as there is with undergraduate degrees, with the result that many bright but poor students are unable to take taught postgraduate courses or do a PhD. In addition, there is a real fear that those who are now paying up to Ā£9,000 fees per annum will not have the appetite or ability to fund postgraduate study whenever they graduate in 2014/15, which deprives the UK of highly-trained specialists and future academics. You can read more about this impending crisis and funding gap here.
Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne...