The University of Rwanda Launch Agribusiness Program in Rwanda

                                                                   Image Credit: MSU
Michigan State University and the University of Rwanda recently launched a new Master of Science degree program in agribusiness in Kigali, Rwanda.  The gender-sensitive degree program will enroll its first cohort of students in February 2015.

The degree program was jointly developed with funding provided by the U.S. Agency for International Development through the Women’s Leadership Program, implemented globally by Higher Education for Development.

The graduate program prioritizes accessibility to women and midcareer professionals and will incorporate extensive experiential learning opportunities for students. The structure of the program requires all students to partake in an internship, thus better preparing them for leadership and entrepreneurial roles in agriculture in Rwanda. 

“Agriculture is vital to the people and economy of Rwanda, and many of those involved in agriculture are women,” said James McWha, UR professor emeritus and vice chancellor. “Their input to the business of agriculture is essential. It is also important that agriculture adopts a modern business strategy because it is a business and all those involved must learn the relevant skills. This program brings together all the components necessary for a major development of the future of the agriculture and food industries in Rwanda.” 

Using a collaborative approach, the Women’s Leadership Program is designed to support access of women to higher education and advanced degrees, strengthen institutional capacity in research and education on women’s leadership and promote women’s leadership through higher education extension/outreach efforts in underserved communities. 

“The empowerment of women through the expansion of their leadership opportunities and spaces for their voices to be heard is a top priority for USAID globally, including in Rwanda,” said Joseph Lessard, USAID/Rwanda economic growth director. “We really believe this program will give women rich opportunities to share their expertise and play major roles in the country’s economic development. We congratulate the University of Rwanda and Michigan State University on this achievement, and look forward to seeing how it will benefit Rwanda into the future.” 

MSU has a rich history of working collaboratively with the Rwandan government and its institutions of higher education. 

“It has been a great honor to continue the tradition of our two universities working together to advance the agriculture sector in Rwanda,” said Gretchen Neisler, principal investigator on this project from MSU.  “Working collaboratively on the Rwanda Women’s Leadership Program has been very rewarding. I look forward to strengthening our partnership with the UR through the continued development of this degree program.  I am also excited to explore new and innovative ways for our two universities to work together to educate the next generation of thought leaders at both Michigan State University and the University of Rwanda.”

Source: MSU

UT Institute of Agriculture Launches New Branding Campaign

There’s no mistaking the system colors of the University of Tennessee. Everywhere you look, there’s plenty of orange.

However, the UT Institute of Agriculture (UTIA) is adding new splashes of color to the landscape, along with redesigned logos for the Institute and its four units. All feature the orange “UT” system icon that is so widely recognized. In addition to the new theme colors, UTIA is adopting a new tagline that will serve as its branding promise: Real. Life. Solutions.

“We believe the Institute of Agriculture’s new logo and brand promise best represent our statewide presence in all 95 counties of Tennessee,” says UTIA Chancellor Larry Arrington. “Visual branding is important when telling the story of an organization, and our new look and message will help us better communicate our land-grant mission.”

UTIA’s new logo features the traditional orange with a slate font. UT Extension features a green or “pasture” color. UT AgResearch is represented by a dark blue known as “bluff.” The UT College of Agricultural Sciences and Natural Resources has a blue “azure” color, and the UT College of Veterinary Medicine features a gray “granite” color. The brand promise will be featured prominently on printed and electronic materials, and be a part of apparel and signage around Tennessee. Images of the new logos can be found on the UTIA Marketing website: ag.tennessee.edu/marketing

"Our brand promise speaks to what the faculty, staff, students, alumni and supporters do every day, and that is working to find answers to society's many challenges," says Lisa Stearns, vice chancellor for UTIA Marketing and Communications. "Providing real life solutions that make a positive impact in our state and beyond is our commitment."

The campaign was developed by UTIA’s Marketing and Communications unit over the past year. It included a statewide audit of printed and electronic materials, and consulting an expert to guide a discussion on branding architecture. In addition, the team worked with the UT System Marketing and Communications Office to make sure the direction in which UTIA was moving would help promote the UT brand.

The Institute will begin phasing in the new logos and brand promise immediately, and the goal is to have full implementation by the end of 2015 across Tennessee.

The UT Institute of Agriculture provides instruction, research and outreach through the UT College of Agricultural Sciences and Natural Resources, the UT College of Veterinary Medicine, UT AgResearch, including its system of 10 research and education centers, and UT Extension offices in every county in the state.

Source: UTIA

February 2015 Supermarket Orchid, Mass marketing has hit the orchid world!

The phalaenopsis, or moth orchid, is a favorite gift orchid and is readily available in supermarkets and garden centers. It comes in a variety of colors and exotic patterns, and with care the long-lived blooms can be enjoyed for weeks. Photo by P. McDaniels, courtesy UTIA

Did someone bless you with a beautiful orchid? Mass marketing has hit the orchid world!
Among the most popular orchids for gifting are cattleyas (pronounced “KAT-lee-uh”). Another favorite gift orchid is the genus phalaenopsis (pronounced “fail-en-NOP-sis”).  This orchid is nicknamed the moth orchid because of the shape of its blooms. Both come in a variety of sizes and colors, are readily available in grocery stores and garden centers, and can look just as good in your home as the store.

In spite of the fact that my friends think I can grow anything with little regard for plant rules, I will confess that I managed to kill the first two orchids I was given years ago by simply not consulting the experts. Orchids are epiphytes or air plants that have developed specialized water-storage organs. They like to attach to moist tree bark in a tropical atmosphere. Thus, they have their own set of recommended growing practices. The American Orchid Society (aos.org) gives great advice on keeping your new friend healthy and blooming. 

Both cattleyas and phalaenopsis appreciate a lot of air movement and a long day of filtered, bright light. They don’t appreciate direct sunlight but do thrive in temperatures between 60 and 85 degrees Fahrenheit. Living in an east-facing window usually makes them happiest.

Both orchids should be kept in free-draining growing media. The AOS recommends even moisture, although allowing the media to dry slightly can be beneficial. I recommend you water your orchid once a week, at most. Be sure the water can drain and does not stand in the pot. The pot it came in probably has no drainage, so your job is to not overwater. You can also create drainage holes.

Orchids should be watered in the morning. Because the water should run through the pot, place the plants in the sink. Tepid water is recommended. Also, do not use salt-softened or distilled water. Let the water run through the plant for a minute or so. Be sure to let the plant drain completely. If any water gets trapped in the leaves, use a paper towel to blot. This will help avoid crown rot. If you’ve read that you should just lay some ice cubes around the roots, I have found that generally works, also.

As for fertilizer, there are a number of mixtures and brands, but the AOS recommends that any fertilizer you use should not contain urea. Their website discusses recommended methods. If you want to try a home fertilizer brew, you might try your morning brew. I dump the dregs of my coffee pot into my orchids once a week, all year around.  For an average pot with a 5-inch top measurement, about 1/4 cup of these leavings works best. Doing this will negate the job of occasional fertilizing, as the dregs give your new friend all the encouragement it needs to do its best. I use “high test” (caffeine) coffee leavings, but a friend is using decaf on hers. It will be interesting to see which formula produces the best results. 

When orchids have completed their flowering cycle, it’s time to cut the flower stem to encourage a new bloom on a healthy plant. Again, the AOS has a number of tips about getting your orchid to re-bloom. For phalaenopsis, they recommend cutting the flower stem ½-inch above the first or second node. Be sure your pruners have been disinfected. The plant will most often grow another flower stem and re-bloom.

Repotting may be necessary every one to three years if the plant becomes root-bound or the media needs replenished.  Don’t be tempted to substitute the loose medium that came with your orchid with your favorite soil mix. Orchids like orchid mixes that drain well, otherwise they may decline to the point of no return.

Source: UTIA

The economy of bitcoins: New ways to study social action on markets

ETH's researchers decipher the dynamics behind the cryptocurrency Bitcoin.
Credit: © ulchik74 / Fotolia

Anyone who strolls around the Kreuzberg district of Berlin, can't help but notice them -- the small signs on the doors of shops and cafes "Bitcoins accepted." Customers pay for their shirt or their cappuccino with their Smartphone instead of with bank notes or credit cards. The digital currency Bitcoin makes all this possible.

"The image of Bitcoin has changed fundamentally," explains David Garcia, a post-doctoral researcher with the Chair of Systems Design held by Professor Frank Schweitzer. "Bitcoins used to be the reserve of hackers and computer nerds. Today, hipsters pay for drinks with them and they are accepted in the online shops of large companies." Garcia, together with his colleagues Claudio Tessone, Pavlin Mavrodiev and Nicolas Perony, has just published a study on the social dynamics of the Bitcoin economy in the Journal of the Royal Society: Interface.

Internet activity determines exchange rates

For research the success of the digital currency (see box) is a stroke of luck as all data on every transaction carried out in Bitcoin are available in anonymised form on the Internet. Consequently, Garcia and his colleagues are able to study the Bitcoin economy using corresponding algorithms. This idea saw the light of day when they noticed that the 50,000-fold market value increase in the digital currency in just three and a half years went hand in hand with a 10,000 percent increase in Google searches for Bitcoin. The researchers hypothesise that the increase in the value of Bitcoins is markedly accelerated by activities on the Internet, in particular the search for information and interaction in the social media.

To test their hypothesis the researchers examined four different socio-economic parameters: the development of the Bitcoin user base, the price developments of the currency over time, the search for information about Bitcoin on Google and in Wikipedia (more than six million inquiries) and the exchange of information about Bitcoin on Twitter (almost seven million Tweets). In fact, over the past three the researchers established years major correlations between price developments, the number of new Bitcoin users, searches on the Internet and Tweets.

At the same time, they discovered two positive feedback loops which basically reproduced the laws of the "analogous" economy. The growing popularity of Bitcoins on the Internet leads to growing demand which, in turn, encourages activity in the social media. This all results in a higher price for Bitcoins. The second feedback concerns the user base: the more users become part of the Bitcoin transaction network, the higher the price because Bitcoins are not issued in line with demand but in an automated fashion at regular intervals. This means it is possible to calculate the available amount at any time. One negative feedback is, however, surprising. Prior to a major slump in the price of the currency, there was a dramatic increase in Bitcoin activity on the Internet. "Big changes in Internet and social media activities lead to substantial price fluctuations," comments Nicolas Perony, co-author of the article.

Understanding markets and social dynamics

Perony is convinced that the quantitative analysis of social phenomena on the Internet has major potential. "With digital currencies we can observe aspects of the economy that we didn't have access to with cash. This gives us greater understanding of how markets actually function." According to the authors, the methodology described in the article could be applied to other areas in society, too. The Bitcoin mining network, which issues the currency, already harnesses computing power today which is three hundred times bigger than that of the 500 most powerful supercomputers together. "The big question is how such a high-performance system could be used for collaborative activities which go beyond the production of money," comments Perony. One possibility would be, for instance, collaborative research in a global network or the decentralised ownership of specific goods managed by a global network. Bitcoms do not belong to anyone. Buyers merely acquire the right to use a specific amount of them. This study already outlines today the tools for accurately quantifying and analysing the social dynamics of collaborative systems of this kind in the future.

The meteoric rise of Bitcoin

The Bitcoin success story began in 2008 with an article about an alternative, digital currency published under the pseudonym Satoshi Nakamoto. In July 2010 Bitcoins were traded for the first time on the Internet exchange Mt. Gox at a rate of US$ 0.06 for 1 Bitcoin. The total value of all Bitcoins was US$ 277,000. By the end of 2013 the market value of all issued Bitcoins had climbed to more than US$ 14 billion whereby during spikes more than US$ 1,000 were paid for one Bitcoin. Today, over four million people use the digital currency. 

Bitcoins are traded in euros, dollars and in Chinese renminbi. Unlike conventional currencies there is no central bank for Bitcoins which has a monopoly for printing money. New Bitcoins are generated by what is known as mining via a global computer network -- currently at a rate of 25 Bitcoins every ten minutes. Transactions are likewise verified and carried out on this network. Even the bankruptcy of important Bitcoin trading exchanges and negative headlines about money laundering and drug purchases on the Internet were not able to undermine confidence in the currency. A few days ago the PC giant Dell announced that it will henceforth accept Bitcoins as payment for products in its online shop.

Source: ETH Zurich

How widespread is tax evasion? Cost of 'round-tripping,' a method investors use to avoid the tax collector

A new study puts a cost on "round-tripping," a method investors use to avoid the tax collector.
Credit: Illustration: Jose-Luis Olivares/MIT

Tax evasion is widely assumed to be an eternal problem for governments -- but how widespread is it? For the first time, a new study, co-authored by an MIT professor, has put a cost on a particular kind of tax evasion, known as "round-tripping," that the U.S. government has been trying to thwart.

In round-tripping, U.S. investors move funds to offshore tax havens, then invest in U.S. equity and debt markets with these "foreign" funds. In essence, the U.S. investors are disguising themselves as foreign investors, who are not subject to the same tax rates on capital gains and interest income. The money is said to have made a "round trip" since it originates in the U.S., and winds up back in U.S. markets.

According to the study, published in the Journal of Finance, every 1 percent increase in the top U.S. tax rate leads to an increase of 2.1 percent to 2.8 percent in foreign portfolio investment (FPI) from tax havens. As of 2008, some $34 billion to $109 billion of FPI from those havens appears to have been invested in the U.S. via round-tripping, leading to a loss of $8 billion to $27 billion in tax revenue.

"The higher the tax rate, the more securities appear to be purchased from tax haven jurisdictions," says Michelle Hanlon, a professor of accounting at MIT. "This seems to indicate that U.S. individuals are pretending to be foreigners who then invest in the U.S. markets."

The paper, "Taking the Long Way Home: U.S. Tax Evasion and Offshore Investments in U.S. Equity and Debt Markets," is co-authored by Hanlon, Edward L. Maydew of the University of North Carolina, and Jacob R. Thornock of the University of Washington.

Hanlon and her co-authors have presented their findings to the staff of the U.S. Senate's Permanent Subcommittee on Investigations, among other groups interested in the results.

A subtle strategy for identifying evaders

To be sure, not all investments from tax havens are dubious, so the study employed a multiprong strategy. First, it looked at changes in investment levels from tax havens after changes in U.S. tax rates. Second, the study evaluated these changes in investment with an eye to whether or not the U.S. has a bilateral Tax Information Exchange Agreement (TIEA) with the offshore sovereignty in question. TIEAs potentially allow the U.S. to find out considerably more information about the investments being made from those locations.

Sure enough, the researchers found that there is a decrease of up to 32 percent, in both equity and debt investments, when the U.S. creates a TIEA with other sovereign parties.

"The reverse effect we see is that when the U.S. enters into an exchange agreement, we see less investment from tax havens," adds Hanlon, who is the Howard W. Johnson Professor of Accounting at the MIT Sloan School of Management.

To be clear, Hanlon says, "It's very hard to identify tax evasion, because obviously people are trying to hide it." However, she adds, "Once we started seeing the data, we realized we could try to tackle this problem. We had to do a lot of tests to try to isolate the effect we're looking for, [and] we think it's a big step to try to put some numbers around this phenomenon."

The conclusions come from data collected by both the U.S. Federal Reserve and the U.S. Treasury, which allowed the researchers to piece together monthly flows of foreign investment into U.S. equity and debt markets.

Policy changes: What can be done?

Hanlon suggests that greater international cooperation will at least make this type of tax evasion more difficult and riskier. Additional TIEAs, for instance, would force some investors to go to greater lengths to engage in round-tripping.

"People always try to evade taxes, but [more TIEAs] will make it harder," Hanlon suggests. "And the more costly and risky it becomes, the costs will outweigh the benefits, at least on the margin, and the less likely people are to do it."

On the academic front, Hanlon recognizes that the study's findings present a wide range for the total cost of this tax evasion, but hopes the paper will be a spur to other scholars who may want to delve into the same topic.

"We felt it was important enough that someone try to do research like this, to get people thinking about other data sources and other ways to examine [tax evasion]," Hanlon says. 

"Our hope was that it would lead to more research and that people would take more risks to look at things like this."

Source: Massachusetts Institute of Technology

Three out of every four European banks fails in handicap accessibility of their websites

"The results reflect that only 26% of the banks show acceptable levels on their websites, and in more than 36% of cases analysed, serious obstacles to accessibility were found," Ana Belén Martínez, one of the researchers participating in the study, explained.

Three out of every four European banks fails in the accessibility of their websites Researchers from the University of Oviedo (Spain) have analysed the websites of nearly 50 banks from the EU to check whether any user, even if disabled, has equal access. The results show that this right is not fulfilled in 74% of cases, and therefore they demand greater interest from financial entities in this technological and social problem.

Web accessibility is the collection of technological innovations that guarantee fair access to the web for all users, regardless of disability or the device used. However, these facilities do not appear on the majority of web pages for European banks, according to an analysis carried out by computer specialists and economists from the University of Oviedo, Spain.
"The results reflect that only 26% of the banks show acceptable levels on their websites, and in more than 36% of cases analysed, serious obstacles to accessibility were found," Ana Belén Martínez, one of the researchers participating in the study, explained.

Javier De Andres, another of the authors, highlighted the consequences of the lack of accessibility: "People with disabilities find themselves with additional obstacles at the time of accessing electronic banking services, therefore often having to carry out certain steps in person, with the difficulties and discrimination that this implies."

The researchers offered some solutions to solve the problem: "The websites of the banks should provide text alternatives for all of their visual and auditory content, use units that facilitate understanding of style sheets, include input devices alternative to using the mouse, and clearly identify the language used on their website."

In order to carry out the study, published by the journal Information Processing & Management, a database made up of 49 banks from the EU -- 8 of them Spanish -- was used, whose actions form part of the Dow Jones EURO STOXX 50 stock index.

The authors have identified three factors that implement web accessibility. The first is operational, because of its contribution to the efficiency of the bank operations. "Those financial entities that want to improve a poor performance can adopt these applications, within a range of corrective measures," Martínez said.

Another factor is the size, in the way that the bigger banks have bigger information technology departments that provide a competitive advantage to adopt this technology, in relation to small banks. The third factor is that web accessibility can also be understood as part of the Corporate Social Responsibility (CSR) of the entity, that is to say, its active and voluntary contribution towards social, economic and environmental improvement.

According to the results, neither the operational factors nor the size seem to have exercised a significant influence on the adoption of this technology by European banks. Regarding the CSR strategy, the results show a paradox whereby those less engaged with social corporate responsibility are precisely those that have more accessible websites.

"One possible reason is that the banks that do not appear in the indices that demonstrate high CSR commitment try to overcome this problem by participating in activities such as the adoption of web accessibility," Martínez pointed out.

The researchers concluded by indicating that neither web accessibility nor the advantages that it offers to the organisations are sufficiently known yet, and thus encourage the banks to improve in this sphere in order to guarantee fair access to all clients.

Source: Plataforma SINC

Study of brokers' potential conflict of interest in routing limit orders leaked to Wall Street

A new academic paper about potential conflict of interest in large retail brokers' routing of limit orders has stirred controversy on Wall Street and caught regulators' attention -- even before the paper has been submitted to a journal.

While some in the industry have compared the study's possible impact to an earlier one that reformed Nasdaq trading, the authors caution that the paper is not yet final and the findings should be taken in proper context.

The authors, professors at Indiana University's Kelley School of Business and the University of Notre Dame Mendoza College of Business, found that some large retail brokers regularly route clients' limit orders to the exchange that pays them the highest rebates. Under certain circumstances, this can lead to some clients' trades not being executed at the best possible times -- or not being executed at all.

"Certain brokers, led by Ameritrade and including E*Trade, Scott Trade and Fidelity, were bifurcating the order flow -- sending market and limit orders to different exchanges -- but seemed to send all their limit orders to one place," said Robert Jennings, the Gregg T. and Judith A. Summerville Professor of Finance at Kelley.

"Brokers were paid for almost every order received; the conflict of interest occurs because some exchanges will pay brokers more to route limit order flows there, even if the chance that the limit order gets executed is lower on that exchange than somewhere else."

U.S. equity exchanges typically charge traders taking liquidity -- such as market orders -- and pay traders making liquidity -- such as limit orders. The payments, or rebates, are funded by take fees, so exchanges with the highest liquidity rebates also have the highest take fees. Brokers can generate revenue from customers' order flow.

According to the paper, "Can Brokers Have It All? On the Relation Between Make Take Fees & Limit Order Execution Quality," study results also indicate that, under some market conditions and for certain stocks:

-- Fill rates for displayed limit orders are lower on exchanges with higher fees. -- Limit orders executed on venues with high fees take longer to execute than those with low fees. -- On average, limit orders executed on venues with low/negative take fees are more likely to fill at the most opportune time for the limit order customer.

"Our results suggest that order routing decisions have an important impact of at least some measures of limit order execution quality and routing decisions based primarily on rebates/fees appear to be inconsistent with best execution," Jennings said. "Even if fees/rebates are passed directly through to the investor, the decision to use a single venue that offers the highest liquidity rebates does not appear to be consistent with the objective of obtaining best execution."

Paper leaked to financial community; FINRA asks brokers for data

The authors presented the paper to relevant industry representatives, including several brokerages, the Securities and Exchange Commission and the National Association of Securities Dealers. This common practice is generally accepted by all parties to be a confidential forum to test and refine study hypotheses and findings.

However in this case, the paper was leaked to the broader financial community without the authors' knowledge or permission. This led some to suggest the paper's impact could equal that of a 1994 study by Bill Christie of Vanderbilt University and Paul Schultz of Notre Dame showing implicit collusion among Nasdaq market makers; it led to sweeping reform of Nasdaq market (and a billion-dollar legal settlement).

The paper's leak -- and the Financial Industry Regulatory Authority's subsequent request for routing data from the 50 largest brokers -- has the authors concerned that the findings about brokers' maximizing liquidity rebates might be oversimplified.

Routing limit orders to maximize make rebates reduces fill rates, produces less profitable limit order executions -- and might be inconsistent with a broker's fiduciary responsibility to obtain best execution, the authors concluded.

"This is a classic case of adverse selection. If there's really bad news about the stock, everybody gets filled. If there's good news about the stock, then only the places where the order gets filled first get filled," Jennings said. "We are not alleging that the use of such rebates is illegal or that it violates securities laws, but there is a need for further transparency for consumers."

The authors expect to publish the revised and final version of the paper in the near future, after incorporating feedback they received.

"Given the competitive nature of the retail brokerage business, if brokers can get exchanges to pay for their orders, they could charge lower commissions," Jennings said. "Thus, customers may be slightly better off; if the payment was eliminated, commissions might have to be higher."

Commissions may be based on the total revenue that brokers receive, "but lower commissions do not compensate those investors who miss out on profitable limit order executions," Jennings and his colleagues concluded. "Brokers cannot have it all."

Jennings co-authored "Can Brokers Have It All?" with Robert Battalio, a professor of finance; and Shane Corwin, an associate professor of finance, both at Notre Dame. Battalio earned his doctorate at Kelley.

Source: Indiana University

Credit score can also describe health status

It appears the same behaviors that ruin credit ruin health too. Credit: © Ivelin Radkov / Fotolia

A credit score doesn't just reduce a person's entire financial history down to a single number and somehow predict their credit-worthiness.

It might also be saying something about a person's health status, too, according to a new analysis from a long-term study of the physical and mental health of more than 1,000 New Zealanders who have been monitored continuously from birth to age 38.

The latest paper from the study, appearing this week in the Proceedings of the National Academy of Sciences, has found a strong relationship between low credit scores and poor cardiovascular health.

This doesn't mean that poor financial management hurts your health, post-doctoral researcher Salomon Israel of Duke University is quick to point out. It's that the sort of personal attributes that can lead to a poor credit score can also contribute to poor health.

This and other studies from the Dunedin Multidisciplinary Health and Development Study in New Zealand have found that self-control, planning ahead and perseverance are attributes that predict both better financial status and better health.

"What it comes down to is that people who don't take care of their money don't take care of their health," said study leader Terrie Moffitt, who is the Nannerl O. Keohane university professor of psychology and neuroscience at Duke. She said this study confirms what the insurance and financial industries may already understand.

Backtracking into the data on these study participants, the researchers found that about 20% of the relationship between credit scores and heart health was accounted for by the attitudes, behaviors and competencies displayed by the study members when they were younger than age 10.

"We're showing that these things take root early in life," Israel said.

Harvard economist David Laibson, who was not involved in the research, said the study "fundamentally transforms our understanding of the psychological factors that connect our health and wealth."

Lamar Pierce, an associate professor of organization & strategy at Washington University in St. Louis, agreed. "This study is important because it identifies common cognitive foundations long before financial and physical health problems emerge," said Pierce, who was not involved in this study. "It provides hope that early life intervention can impede the development of life-long patterns of illness and financial struggle."

Using a standard measure called the Framingham cardiovascular risk score, the Duke researchers estimated the "heart age" of their participants, based on blood pressure, cholesterol levels, blood sugar and smoking habits. At age 38, the participants' Framingham "heart ages" ranged from 22 to 85 years. Participants with higher credit scores had younger "heart ages." The components of the Dunedin study's human capital measure -- educational attainment, cognitive ability and self-control -- each predicted higher credit scores and younger heart age.

The idea of checking credit scores against the detailed personal data in the Dunedin study came from a conversation Moffitt had with her seatmate on a plane about a decade ago. When she told her travelling companion from the life insurance industry that she studied self-control and life outcomes, he said, "We do that too, but we use credit scores."

"The thing that's so compelling about credit scores is that they're both predictive and retrospective," said co-author Avshalom Caspi, the Edward M. Arnett professor of psychology and neuroscience, psychiatry & behavioral sciences at Duke. "They offer a window on the future, but also a window on the past."

In recent years, credit scores have been used for pre-employment screening and many other functions beyond their original intent, Israel said. This study seems to bear out their usefulness as a proxy for a person's reliability and steadfastness, and in turn how healthy they may be.

"Our findings suggest that life insurance companies that acquire an applicant's credit score are also indirectly acquiring information about that applicant's educational attainment, intelligence and personality, right back to childhood," the authors wrote.

The link might work the other way as well. In less developed countries where credit scores aren't available, a Harvard team has been experimenting with using a 40-minute personality quiz to assess candidates' credit-worthiness for microloans.

This research was supported by the New Zealand Health Research Council, US National Institute on Aging (AG032282, T32-AG000029), the UK Medical Research Council (MR/K00381X) the Jacobs Foundation and the Yad Hanadiv Rothschild Foundation.

Source: Duke University