Harvard professor loses honorary title in ethics violation

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.

Yesterday morning, the entry for Shleifer in the online campus directory changed from ``Whipple V.N. Jones Professor of Economics," to ``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 statement yesterday. ``My students, my colleagues, and my work are what matter to me."

It is unclear whether 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 behalf of the United States. In a settlement with the US 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 that ``appropriate action" had been taken. But he said Harvard would not comment on the nature of the action.

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

Neither his critics nor 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, " he said. ``I don't think we should be playing games with names of chairs."

Bombardieri can be reached at bombardieri@globe.com.