Found 691 article(s) for author 'Regulation'

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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The Role of Gatekeepers in Capital Markets

The Role of Gatekeepers in Capital Markets. Suraj Srinivasan, May 2019, Paper, “Gatekeepers in financial markets have the power to provide the institutional stability, fortitude and direction necessary for the development and the smooth functioning of capital markets. At the same time, they are often motivated by their own private incentives. This, along with the trade-offs they face and the at-times unintended consequences of the regulations they propose and enforce, can undermine their effectiveness. A thorough understanding of gatekeepers and their roles can thus illuminate academics, the financial community and regulators on how such gatekeepers can be the most effective and generate the greatest benefits for capital markets. Since gatekeeping roles and the literature they have inspired encompass a wide array of institutions and agencies, our overview concentrates on those that the conference papers appearing in this volume focus on. We conclude that collectively, the papers contribute to significant progress, point out some crucial areas that call for further investigation, and offer opportunities for future research.Link

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People Over Pandas: Taiwan’s Engagement of International Human Rights Norms with Respect to Disability

People Over Pandas: Taiwan’s Engagement of International Human Rights Norms with Respect to Disability. William Alford, May 17, 2019, Book Chapter, “Taiwan’s early law (1980) regarding disability presumed a medical model—i.e., seeing disability as an individual problem rather than a societal responsibility. Facing considerable discrimination and inspired by the social model embodied elsewhere, including in the United Nations Convention on the Rights of Persons with Disabilities (CRPD), citizen activists, including disabled persons organizations, have pressed for legislative reform. Following the earlier support of the administration of President Ma Ying-jeou for incorporation of the United Nations Human Rights Covenants into domestic law (owing to Taiwan’s being barred from formal accession), the Legislative Yuan in 2014 passed a bill designed to incorporate the CRPD into Republic of China (R.O.C) law. That measure not only retained all key provisions of the CRPD but also called on the Executive Yuan to conduct a comprehensive review of existing legal measures for compliance and pro-actively to engage persons with disabilities in implementing the new law, while also establishing innovative reporting and monitoring mechanisms intended to parallel the requirements of the CRPD. Much progress has been achieved but serious challenges remain regarding discrimination, especially with respect to employment and reasonable accommodations, while some scholars have questioned the suitability of a highly individual-focused rights-based model for Taiwanese society. Disabled persons organizations continue to play an active role both in policy and legal advocacy and in seeking to educate the public more broadly about disability.Link

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The Politics of CEOs

The Politics of CEOs. Alma Cohen, May 2019, Paper, “This paper is part of the work of the Project on Corporate Political Spending of the Harvard Law School Program on Corporate Governance. We would like to thank Lucian Bebchuk and Itay Saporta for valuable comments and discussions. We have also benefitted from invaluable research assistance by Shay Acrich, Omer Braun, Zoe Piel, and Ewelina Rudnicka. We gratefully acknowledge the financial support of the John M. Olin Center for Law, Economics, and Business and the Program on Corporate Governance at Harvard Law School, the Israel Science Foundation, and Tel-Aviv University. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.Link

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