astronomy

Lawrence Benveniste

Lawrence Benveniste is a astronomy topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Lawrence Benveniste rather than just read about it. In short: Lawrence M. Benveniste is an American mathematician, financial strategist, and academic.

Key takeaways

Lawrence Benveniste belongs to astronomy; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Lawrence Benveniste to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Lawrence Benveniste from memory before moving on to harder problems.

Reference excerpt

Lawrence M. Benveniste is an American mathematician, financial strategist, and academic. He is the Asa Griggs Candler Professor of Finance at the Goizueta Business School at Emory University. Benveniste is most known for his work on dynamic economic models and initial public offerings. His research has been published in academic journals, including the Journal of Finance, Journal of Financial Economics, Journal of Political Economy and Econometrica.

Education Benveniste earned his B.S. in Mathematics from the University of California, Irvine in 1972, followed by his PhD in Mathematics from the University of California, Berkeley in 1975.

Career Benveniste joined University of Rochester in 1976, initially as an assistant professor of economics until 1982. He then transitioned to the University of Pennsylvania, where he served as a lecturer in economics from 1982 to 1985. From 1985 to 1987, he held the position of staff economist at the Board of Governors of the Federal Reserve System. Following this, he assumed a role as a visiting associate professor of finance at the J. L. Kellogg Graduate School of Management at Northwestern University from 1987 to 1989. From 1989 to 1996, he held an appointment as an associate professor of finance at Boston College. His tenure at the Carlson School of Management at the University of Minnesota began in 1996, where he served as the U.S. Bancorp Professor of Finance until 2005. During his time at Carlson, he served as dean of the Carlson School of Management (2001–2005). In 2005, he assumed the position of dean of the Goizueta Business School at Emory University (2005–2013). Since 2013, he has held the position of Asa Griggs Candler Professor of Finance at the Goizueta Business School at Emory University.

Research Benveniste began his research career studying formal economic models of growth and development. His 1979 paper, "On the Differentiability of the Value Function in Dynamic Economic Models," (co-authored its José Scheinkman) provided the foundation for dynamic programming in Economics. The paper used the envelope theorem to prove that the value function is differentiable when the objective is concave and differentiable. The resulting formula is known as the Benveniste Scheinkman formula. He then transitioned to finance following his time at the Federal Reserve. His 1989 paper, "How Investment Bankers Determine the Offer Price and Allocation of New Issues," co-authored with Paul Spindt, developed the economic foundations of bookbuilding. The model explained underpricing as the natural result of inducing early investors to share their information and sentiment during the pre-selling period. The resultant prediction that offer prices only partially adjust to demand was later established in a paper by Kathleen Hanley. In his investigation of the impact of uniform-price restrictions and allocation regulations on IPO proceeds, his 1990 study proposed that underwriters may optimize proceeds through a combination of price and allocation discrimination while considering factors such as the cost of soliciting information and adverse selection.

Selected articles Benveniste, L. M., & Scheinkman, J. A. (1979). On the differentiability of the value function in dynamic models of economics. Econometrica: Journal of the Econometric Society, 727–732. Benveniste, L. M., & Spindt, P. A. (1989). How investment bankers determine the offer price and allocation of new issues. Journal of financial Economics, 24(2), 343–361. Benveniste, L. M., & Wilhelm, W. J. (1990). A comparative analysis of IPO proceeds under alternative regulatory environments. Journal of financial economics, 28(1–2), 173–207. Benveniste, L. M., Busaba, W. Y., & Wilhelm Jr, W. J. (2002). Information externalities and the role of underwriters in primary equity markets. Journal of Financial Intermediation, 11(1), 61–86. Benveniste, L. M., Ljungqvist, A., Wilhelm Jr, W. J., & Yu, X. (2003). Evidence of information spillovers in the production of investment banking services. The Journal of Finance, 58(2), 577–608.

References

Worked examples

Example 1 — a first encounter with Lawrence Benveniste

Start with the simplest possible case. Write down what Lawrence Benveniste claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In astronomy, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Lawrence Benveniste before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Lawrence Benveniste ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Lawrence Benveniste

In research: Lawrence Benveniste appears in astronomy research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Lawrence Benveniste in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Lawrence Benveniste is common in secondary-school and first-year university syllabi. It links to neighbouring topics American mathematicians, Emory University faculty, Living people, so understanding it makes those chapters shorter.
In everyday life: Look for Lawrence Benveniste outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Lawrence Benveniste in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Lawrence Benveniste means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Lawrence Benveniste out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Lawrence Benveniste in simple terms?

Lawrence M. Benveniste is an American mathematician, financial strategist, and academic.

Why does Lawrence Benveniste matter?

Because it connects several astronomy ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Lawrence Benveniste?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Lawrence Benveniste.