Found 582 article(s) in category 'Regulation'

Investment Cycles and Sovereign Debt Overhang

Investment Cycles and Sovereign Debt Overhang. Aguiar, Mark, Manuel Amador, and Gita Gopinath, 2009, Paper. “We characterize optimal taxation of foreign capital and optimal sovereign debt policy in a small open economy where the government cannot commit to policy, seeks to insure a risk-averse domestic constituency, and is more impatient than the market. Optimal policy generates long-run cycles in both sovereign debt and foreign direct investment in an environment in which the first best capital stock is a constant. The expected tax on capital endogenously varies with the state of the economy, and investment is distorted…” Link

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The Economics of Growth

The Economics of Growth. Philippe Aghion, December 19, 2008, Book. “This comprehensive introduction to economic growth presents the main facts and puzzles about growth, proposes simple methods and models needed to explain these facts, acquaints the reader with the most recent theoretical and empirical developments, and provides tools with which to analyze policy design. The treatment of growth theory is fully accessible to students with a background no more advanced than elementary calculus and probability theory…” Link

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Regulation and Distrust

Regulation and Distrust. Philippe Aghion and Andrei Shleifer, November 27, 2008, Paper. “In a cross-section of countries, government regulation is strongly negatively correlated with social capital. We document, and try to explain, this highly significant empirical correlation. The correlation works for a range of measures of social capital, from trust in others to trust in corporations and political institutions, as well as for a range of measures of regulation, from product markets, to labor markets, to judicial procedures…” Link

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The Euro and Structural Reforms

The Euro and Structural Reforms. Alberto Alesina, November 2008, Paper. “This paper investigates whether or not the adoption of the Euro has facilitated the introduction of structural reforms, defined as deregulation in the product markets and liberalization and deregulation in the labor markets. After reviewing the theoretical arguments that may link the adoption of the Euro and structural reforms, we investigate the empirical evidence. We find that the adoption of the Euro has been associated with an acceleration of the pace of structural reforms in the product market…” Link

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This Bailout Doesn’t Pay Dividends

This Bailout Doesn’t Pay Dividends. Jeremy Stein, David Scharfstein, October 21, 2008, Article. “On Oct. 13, the chief executives of nine large American banks were called to a meeting at the Treasury Department. At the meeting, Secretary Henry Paulson offered them $125 billion from the federal government in exchange for shares of preferred stock. The chief executives accepted his terms. In some accounts of the meeting, Secretary Paulson is described as playing the role of the Godfather, making the banks an offer they could not refuse. But in one important respect, he was more Santa Claus than…” (May require user account or purchase) Link

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Can Policy Interact with Culture? Minimum Wage and the Quality of Labor Relations

Can Policy Interact with Culture? Minimum Wage and the Quality of Labor Relations. Philippe Aghion, September 2008, Paper. “Can public policy interfere with culture, such as beliefs and norms of cooperation? We investigate his question by evaluating the interactions between the State and the Civil Society, focusing on the labor market. International data shows a negative correlation between union density and the quality of labor relations on one hand, and state regulation of the minimum wage on the other hand…” Link

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The Other Hand: High Bandwidth Development Policy

The Other Hand: High Bandwidth Development Policy, Ricardo Hausmann, September 2008, Paper, Much of development policy has been based on the search for a short to do list that would get countries moving. In this paper I argue that economic activity requires a large and highly interacting set of public policies and services, which constitute inputs into the production process. This is reflected in the presence, in all countries, of hundreds of thousands of pages of legislation and hundreds of public agencies. Finding out what is the right mix of the public inputs, and more importantly, what is a valuable change from the current provision is as complex as determining what is the right mix of private provision of goods. Link

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In search of the chains that hold Brazil back

In search of the chains that hold Brazil back, Ricardo Hausmann, September 2008, Paper, This paper performs a Growth Diagnostic for Brazil. It shows that many aspects of the Brazilian economy have been improving including the macro picture, educational progress and the external front. Moreover, Brazil has many productive possibilities and high-return investments. Yet growth is hampered because of a relatively old-fashioned problem that has been solved in many other countries in the region: creating a financially viable state that does not over-borrow, over-tax or under-invest. We show that domestic saving is the binding constraint on growth and that it has a fiscal cause. Although things are trending in the right direction, the challenge is to exploit the current good times to create the fiscal basis for a sustained growth acceleration. Link

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Inequality and Corruption: Evidence from US States

Inequality and Corruption: Evidence from US States, James E. Alt, August 25, 2008, Paper. “High-quality data on state-level inequality and incomes, panel data on corruption convictions, and careful attention to the consequences of including or excluding fixed effects in the panel specification allow us to estimate the impact of income considerations on the decision to undertake corrupt acts. Following efficiency wage arguments, for a given institutional environment the corruptible employee’s or official’s decision to engage in corruption is affected by relative wages and expected tenure in the public sector…” Link

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Disclosure Is the Best Kind Of Credit Regulation

Disclosure Is the Best Kind Of Credit Regulation. Cass Sunstein, August 13, 2008, Opinion. “The Federal Reserve Board recently issued proposed amendments to Regulation Z, which governs Truth in Lending. According to the Fed, the amendments ‘are intended to improve the effectiveness of the disclosures consumers receive in connection with credit card accounts and other revolving credit plans by ensuring that information is provided in a timely manner and in a form that is readily understandable.’ The Fed’s interest in this problem should be applauded, especially in light of the consumer credit crisis…” Link

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