Almost all companies borrow money – some of secured by assets they own, other debts unsecured. But is that distinction meaningful in the real world? Chicago Booth’s Raghuram Rajan talks about his research into corporate debt. In the past century, the amount of unsecured debt has soared. What’s the significance of that, and is it really unsecured?

What do startup founders need to do to get venture capitalists to invest? Do VCs invest in the right team, or the right idea? Do they invest where they can add value, or do they try to pick new businesses that are going to be winners from the start? Chicago Booth’s Steve Kaplan has surveyed venture capitalists to find out what they look for in startups, and he has a framework he uses to advise both founders and funders on how to pick winning companies.

When students are asked if they use AI to do their work, many say they don’t. But when they’re asked if other students re using AI, many more say that they do. Should we conclude that they’re not being honest about their own AI use? Chicago Booth’s Alex Imas has conducted research on students and AI. Why is using AI such a taboo? And how should schools and colleges respond to its inevitable creep?

It’s hard to say sorry, and it can be even harder to say sorry without following it up with whatever the other person did wrong. Why are apologies so hard? Chicago Booth’s Shereen Chaudhry has conducted research into the strategy of apologizing and blaming. Why do we care so much about others accepting their share of the blame? And when we know that we’ve done wrong, what’s holding us back from apologizing?

The Trump administration has gutted central government, lashed out at the Federal Reserve, and is attempting to dismantle the international trading order. Can America’s institutions survive? We hear from Chicago Booth’s Raghuram Rajan about the role of institutions in political economy. Are we seeing a reversal of fortunes, in which the US is looking more and more like a caricature of a poor country with poorly regarded institutions, growing inequality and a looming sovereign debt crisis?

Private equity investments are typically locked up for many years, which means investors don’t know at any point in time how much their stakes are worth. Should they take at face value the valuations that PE firms provide? Chicago Booth’s Steve Kaplan has detected patterns in private equity valuation reports that reveal whether the company will be sold at a premium, and when that exit might happen. So how can investors get a better sense of when and how big their payoffs will be?

In recent decades, many manufacturing workers in developed economies have lost their jobs, replaced by robots or cheaper imports. One option is to try to get those jobs back. Another is to retrain them to acquire skills that are in demand. But does it really make sense to send displaced manual workers to college? Chicago Booth’s Anders Humlum talks about his research on retraining injured workers, which suggests that paying them to go to college reaps big returns. Is the same true for workers who lose their jobs to automation or trade?

Imagine that you hear about a powerful new miracle drug just discovered. If the scientist who did the research had stock options in the drug maker and stood to make a lot of money if the drug got approved, would that affect how you think about it? Luigi Zingales talks about his research into conflicts of interest in research and what should be done about them.

Many of us have a general sense that as a society, we’re not just becoming more polarized politically, but we’re also moving further apart culturally – what we buy, what we watch, how we spend our spare time - these consumer behaviors are also increasingly diverging. Chicago Booth’s Emir Kamenica has studied the cultural divide in America. While his research confirms a widening gap in social attitudes between conservatives and liberals, it also reveals that the culture gap is remarkably stable. How did he arrive at that conclusion, and what does it mean for society?

One of the fastest-growing parts of the financial system in the past 15 years has been private credit, that is, lending not by banks but by other financial institutions or funds that don’t take deposits. The sector expanded ten fold between 2009 and 2023, to reach a value of about $2 trillion, according to McKinsey. And McKinsey thinks it has room to continue growing to become a $30 trillion industry. What does this mean for companies, and for the broader US economy? Welcome to the Chicago Booth Review podcast, where we bring you groundbreaking academic research in a clear and straightforward way. I’m Hal Weitzman, and today, I’m talking with Chicago Booth’s Amir Sufi about the rise of private capital. Is it better or worse for borrowers? Should we be worried about systemic risk? And why aren’t banks lending as they used to?