Found 50 article(s) for author 'Cass Sunstein'

Cut Global Red Tape to Promote Economic Growth

Cut Global Red Tape to Promote Economic Growth. Cass Sunstein, March 11, 2013, Opinion. “Imagine that you own a small but rapidly growing company in Vermont, and that your products are starting to sell in Maine, New Hampshire and Massachusetts. You would probably hate it if those states forced you to comply with inconsistent and redundant regulatory requirements. Fortunately, the U.S. has a national market. Sure, unnecessary red tape still produces headaches, but the federal system (including the Constitution) sharply limits a state’s power to disrupt the free movement of goods across state lines. Within the U.S., that movement has been a crucial engine of economic growth…” Link

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Nudges.gov: Behavioral Economics and Regulation

Nudges.gov: Behavioral Economics and Regulation. Cass Sunstein, February 01, 2013, Paper. “Behavioral economics is influencing regulatory initiatives in many nations, including the United States and the United Kingdom. The role of behavioral economics is likely to increase in the next generation, especially in light of the growing interest in low-cost, choice-preserving regulatory tools. Choice architecture — including default rules, simplification, norms, and disclosure — can affect outcomes even if material incentives are not involved. For example, default rules can have an even larger effect than significant economic incentives…” Link

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The Value of a Statistical Life: Some Clarifications and Puzzles

The Value of a Statistical Life: Some Clarifications and Puzzles. Cass Sunstein, 2013, Paper. “Many people have wondered why the US government conducts cost-benefit analysis with close reference to the value of a statistical life (VSL). It is helpful to answer that question by reference to the ‘Easy Cases,’ in which those who benefit from regulatory protection must pay for it. In such cases, WTP is usually the right foundation for VSL, because beneficiaries are hardly helped by being forced to pay for regulatory protection that they believe not to be in their interests. In the Easy Cases, arguments from both welfare and..” Link

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21st-Century Regulation: An Update on the President’s Reform

21st-Century Regulation: An Update on the President’s Reform. Cass Sunstein, May 25, 2011, Opinion. “A 21st-century regulatory system must promote economic growth, innovation and job creation while also protecting public health and welfare. Earlier this year, President Obama outlined his plan to create such a system by adopting a simpler, smarter and more cost-effective approach to regulation. As a key part of that plan, he called for an unprecedented government-wide review of regulations already on the books so that we can improve or remove those that are out-of-date, unnecessary, excessively burdensome or in conflict with…” Link

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Empirically Informed Regulation

Empirically Informed Regulation. Cass Sunstein, 2011, Paper. “In recent years, social scientists have been incorporating empirical findings about human behavior into economic models. These findings offer important insights for thinking about regulation and its likely consequences. They also offer some suggestions about the appropriate design of effective, low-cost, choice-preserving approaches to regulatory problems, including disclosure requirements, default rules, and simplification. A general lesson is that small, inexpensive policy initiatives can have large and highly beneficial effects…” Link

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Cost-Benefit Analysis and Relative Position

Cost-Benefit Analysis and Relative Position. Cass Sunstein, January 1, 2010, Paper. “Current estimates of regulatory benefits are too low, and likely far too low, because they ignore a central point about valuation – namely, that people care not only about their absolute economic position, but also about their relative economic position. We show that where the government currently pegs the value of a statistical life at about $4 million, it ought to employ a value between $4.7 million and $7 million. A conservative reading of the relevant evidence suggests that when government agencies are unsure how to value regulatory benefits along a…” 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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The Dramatic Effect of a Firm Nudge

The Dramatic Effect of a Firm Nudge. Cass Sunstein, August 12, 2008, Opinion. “In the past three decades, psychologists and behavioural economists have learnt that people’s choices can be dramatically affected by subtle features of social situations. For example, inertia turns out to be a powerful force. If people’s magazine subscriptions are automatically renewed, they renew a lot more than if they have to send in a renewal form. Moreover, people are influenced by how problems are framed. If told that salami is ’90 per cent fat-free’ they are far more likely to buy salami than if they are told it is…” (May require user account or purchase) Link

 

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Nudge: Improving Decisions About Health, Wealth, and Happiness

Nudge: Improving Decisions About Health, Wealth, and Happiness. Cass Sunstein, April 8, 2008, Book. “Every day, we make decisions on topics ranging from personal investments to schools for our children to the meals we eat to the causes we champion. Unfortunately, we often choose poorly. The reason, the authors explain in this important exploration of choice architecture, is that, being human, we all are susceptible to various biases that can lead us to blunder. Our mistakes make us poorer and less healthy; we often make bad decisions involving education, personal finance, health care, mortgages…” (May require purchase or user account) Link

 

 

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The Promise of Prediction Markets

The Promise of Prediction Markets. Cass Sunstein, January 1, 2008, Paper. “Prediction markets are markets for contracts that yield payments based on the outcome of an uncertain future event, such as a presidential election. Using these markets as forecasting tools could substantially improve decision making in the private and public sectors. We argue that U.S. regulators should lower barriers to the creation and design of prediction markets by creating a safe harbor for certain types of small stakes markets.We believe our proposed change has the potential to stimulate innovation in the design…” Link

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