Found 707 article(s) in category 'Regulation'

Rethinking the Regulation of Employment Discharge: The Design of a Monetary Resolution System

Rethinking the Regulation of Employment Discharge: The Design of a Monetary Resolution System. J. Mark Ramseyer, July 4, 2019, Paper, “Should a firm try to discharge an employee, Japanese judges swat it hard. They have been swatting firms hard since the early 1950s. Before the war, most workers and firms had used at-will contracts, and judges had enforced them: workers could quit when they wanted, and firms could discharge them when they wanted. After the war, the Supreme Command for the Allied Powers (SCAP) freed the socialists and communists from prison, and both groups quickly started unionizing the work force. When firms now tried to discharge workers, the unions struck. They could strike violently: When the national railway tried to slash its work force, someone ran an unmanned train into…” Link

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Robert Stavins on Climate Policy

Robert Stavins on Climate Policy July 2019. GrowthPolicy’s Devjani Roy interviewed Robert Stavins, the A.J. Meyer Professor of Energy & Economic Development at Harvard Kennedy School, on climate policy. | Click here for more interviews like this one. Links: Faculty page | Publications | Twitter | Blog | Harvard Project on Climate Agreements Growthpolicy.org. You […]

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Procedural Justice and the Risks of Consumer Voting

Procedural Justice and the Risks of Consumer Voting. Leslie John, Michael I. Norton, 2019, Paper, “Firms are increasingly giving consumers the vote. Eight studies demonstrate that when firms empower consumers to vote, consumers infer a series of implicit promises—even in the absence of explicit promises. We identify three implicit promises to which consumers react negatively when violated: representation (Experiments 1A–1C); consistency (Experiment 2), and non-suppression (Experiment 3). However, when firms honor these implicit promises, voting can mitigate the disappointment that arises from receiving an undesired outcome (Experiment 4). Finally, Experiment 5 identifies one instance when suppressing the vote outcome is condoned: when voters believe that the process of voting has resulted in an unacceptable outcome. More generally, we show that procedural justice plays a key mediating role in determining the relative success or failure of various empowerment initiatives—from soliciting feedback to voting. Taken together, we offer insight into how firms can realize the benefits of empowerment strategies while mitigating their risks.Link

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The Macroeconomic Implications of Housing Supply Restrictions

The Macroeconomic Implications of Housing Supply Restrictions. Edward Glaeser, June 15, 2019, Paper, “Housing supply restrictions, including historic preservation policies, minimum lot sizes and height limitations, are typically approached with static Pigouvian tools, but these policies also have dynamic implications. Restricted supply will typically make quantities, which determine construction employment, less volatile, and prices, which determine financial stability, more volatile. A prominent exception occurs when supply-unconstrained areas build so much during a boom that construction halts during the bust, and in that case, elastic supply can be associated with both price volatility and a limited ability to use credit instruments to boost employment during a bust. As institutions with counter-cyclical missions grapple with housing policies, they must recognize that housing regulation interacts with monetary policy, and that reforming housing policy may have implications for the business cycle.Link

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Can Global Rules Prevent National Self-Harm?

Can Global Rules Prevent National Self-Harm? Dani Rodrik, June 11, 2019, Opinion, “Most policy mishaps in the world economy today – as in the case of US President Donald Trump’s tariffs – occur as a result of failures at the national level, not because of a lack of international cooperation. And, with the exception of two types of cases, countries should be allowed to make their own mistakes.Link

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For International Cap-and-Trade in Carbon Permits, Price Stabilization Introduces Secondary Free-Rider-Type Problems

For International Cap-and-Trade in Carbon Permits, Price Stabilization Introduces Secondary Free-Rider-Type Problems. Martin Weitzman, June 7, 2019, Paper, “In this brief note (Without holding them responsible for errors, omissions, or interpretations, I am grateful for constructive comments on an earlier version of this note by Joseph Aldy, Severin Borenstein, Maureen Cropper, Carolyn Fischer, Meredith Fowlie, Lawrence Goulder, Geoffrey Heal, N. Gregory Mankiw, Michael Mehling, Gilbert Metcalf, Adele Morris, Ian Parry, William Pizer, Simon Quemin, Andrew Schein, Richard Schmalensee, E. Somanathan, Robert Stavins, David Victor, and Gernot Wagner.), I take the initial allocation of carbon emissions as a prototype international public goods problem. Overcoming the free-rider problem in carbon emissions is central to a successful comprehensive international climate-change agreement. Volunteerism alone may go part way, but is unlikely to fully adequately overcome this free-rider problem. (The numerical values of the pledged “Nationally Determined Contributions” under the Paris Agreement are voluntary, although the Paris Agreement itself may help constructively by laying a legal foundation for participation, reporting, verification, transparency, and trust.)Link

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Trump Is Slowing US Economic Growth

Trump Is Slowing US Economic Growth. Robert Barro, June 4, 2019, Opinion, “The current state of US macroeconomic policymaking across four key areas does not bode well. Although the 2017 tax legislation has done its job in promoting faster growth, rising trade tensions, persistent regulatory burdens, and a lack of investment in infrastructure all threaten to limit the US economy’s potential.Link

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Consumption Taxes, Redistribution and Informality

Consumption Taxes, Redistribution and Informality. Anders Jensen, 2019, Paper, “We study how the presence of large informal sectors in developing countries impacts the distributional properties of consumption taxes. We assemble a dataset of household expenditure using micro-data from 20 countries at different levels of economic development. Using the place of purchase to proxy for informal consumption, we show a large negative relation between informal consumption shares and households’ total expenditure, which is robust to product and geography controls. This implies that consumption taxes are de-facto progressive: households in the top decile pay 70% more taxes as a share of expenditure than households in the bottom decile. Finally, we build a model of optimal commodity taxation in the presence of informal consumption, which we calibrate to our data. We find that optimal tax rates are less differentiated across products with an informal sector. Tax exempting necessities, such as food, is rarely optimal as it leads to only a marginal gain in progressivity.Link

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Independent Taxation, Horizontal Equity, and Return-Free Filing

Independent Taxation, Horizontal Equity, and Return-Free Filing. Jeffrey Liebman, 2019, Book Chapter, “Switching from joint to independent taxation of spouses in married couples would reduce marginal tax rates on secondary earners, make the tax system marriage neutral, and facilitate return-free filing through exact withholding. This switch would, however, abandon the perspective that total household income is the best measure of ability to pay. This paper investigates the vertical and horizontal equity implications of a switch from joint to independent taxation of the sort that might occur in conjunction with adoption of return-free filing.Link

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