Harvard economist gets slap on the wrist for grand larceny

[Louis Proyect <lnp3@xxxxxxxxx>]

http://www.boston.com/news/globe/city_region/breaking_news/2006/10/harvard_strips.html
Friday, October 13, 2006
Harvard strips economist of title for violating ethics rules

By Marcella Bombardieri. Globe Staff

Star Harvard economist Andrei Shleifer has been stripped of his
honorary university title, following an investigation into whether he
violated the university's ethical rules while advising the Russian government.

This morning, the entry for Shleifer in the on-line campus directory
changed from "Whipple V.N. Jones Professor of Economics," to simply
"Professor of Economics." A Harvard spokesman confirmed that the new
title was accurate.

The title, known as a "named chair," is an honor bestowed upon a
distinguished senior professor. However, at Harvard, named chairs are
generally not tied to salary, so the loss of the title doesn't mean
that Shleifer will be penalized financially. The title "professor,"
indicates that he will retain tenure.

"I was a Professor of Economics last week, and I am a Professor of
Economics this week," Shleifer said in a written statement. "My
students, my colleagues and my work are what matter to me."

It is unclear if he faces other punishments. Shleifer was found by a
judge to have conspired to defraud the federal government by making
personal investments in Russia while advising the country on the
United States' behalf. In a settlement with the U.S. Department of
Justice, he agreed to pay $2 million. Harvard agreed to pay $26.5
million, and a former Harvard staff member, Jonathan Hay, agreed to
pay between $1 million and $2 million.

Harvard's interim dean of the Faculty of Arts and Sciences, Jeremy R.
Knowles, acknowledged this week that the university had concluded its
investigation, and said "appropriate action" had been taken. But he
said Harvard would not comment on the nature of the action. Shleifer
issued a brief statement Thursday saying he was "delighted" to have
the matter behind him.

Controversy over Shleifer hurt former President Lawrence H. Summers,
because some professor suspected he had intervened on behalf of his
fellow economist, a close friend, even though Summers recused himself
from the case.

Neither his critics nor his supporters were pleased by the change in
Schleifer's title.

"Does that place him in an extraordinarily embarrassing position? I
don't think so," said mechanical engineering professor Frederick H.
Abernathy, who has denounced Harvard's handling of the case. "If
students put two or three lines in a paper without a proper quote,
they are hauled before a [disciplinary] board and they are often
given six month off."

Economics professor Lawrence F. Katz called the disciplinary action gratuitous.

"Andrei Shleifer is one of the finest social scientists on the
planet, a huge magnet for students and a wonderful colleague," he
said. "I don't think we should be playing games with names of chairs."

Marcella Bombardieri can be reached at bombardieri@xxxxxxxxxx