In new research, Sarah Schindler and Kellen Zale find that the vast majority of the most populous cities in the United States do not directly notify renters of land-use hearings. Such hearings provide a forum for local members of the public to voice opinions about how land should be used for housing and other construction and inform the decisions of policymakers. The failure to directly notify renters about these hearings can skew the decision-making process—and the housing market— toward homeowners and exacerbate anti-development tendencies in land-use law.

COMMENTARY

Tesla Directors Took a Big Accounting Bet With No Independent Accounting Advice

Lucian Bebchuk and Robert Jackson argue that the Tesla board’s prediction that restoring Musk’s old pay package would require no new compensation charge to Tesla’s financial statement seems not to have been based on any independent accounting advice. This could carry substantial risks for Tesla stockholders.

RESEARCH

The First Hundred Years of the University of Chicago’s Pathbreaking Work on Exchange Rates Economics

In a new paper, Sebastian Edwards details the numerous and varied contributions of University of Chicago faculty to exchange rates and monetary policy from 1892 to 1992.
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A New Capitalisn’t Episode

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The Elephant in Tesla’s Boardroom

Lucian Bebchuk and Robert Jackson discuss how Elon Musk’s threat to develop AI projects outside Tesla may distort investors’ votes on restoring his large options grant.

What Is Bold, Old, and Necessary about the DOJ’s Lawsuit Against Live Nation-Ticketmaster

Drawing on their research, John Kwoka and Tommaso Valletti refute criticisms of the Department of Justice’s lawsuit to break up Live Nation-Ticketmaster that argue such actions irreparably ruin the operations of the constituent firms. The authors highlight the many examples of successful breakups and conclude that only a breakup will now repair the market for live entertainment.

Why It Is Important to Address the Misconduct Cases at the FDIC

Hamid Mehran discusses the recent report on sexual harassment and misconduct at the Federal Deposit Insurance Corporation, highlighting the potential negative impact on financial stability due to the departure of experienced examiners and supervisors. Mehran suggests adopting a clawback scheme in employment contracts for senior employees to foster a healthier work environment and protect the FDIC's most valuable asset, its human talent.

What Prevents Local Governments From Managing Their Finances More Effectively?

Travis St. Clair outlines how fiscal problems at the local level often stem from short-term fiscal and electoral incentives as well as voters’ limited attention. He reviews potential solutions to improve the financial transparency and long-term planning of local governments.

The Political Economy of Populism in Mexico

Rodrigo Castro Cornejo discusses the reasons for the rise of left-wing populism in Mexico under Andrés Manuel López Obrador, how López Obrador’s administration has changed Mexico’s political economy in his six years in office, and what this means for the future of populism in Mexico as voters head to the polls on June 2.

READING LISTS

Americans spend significantly more on health care than any other country. Why? Answers to this question range from hospital monopolies to perverse incentives to opaque pricing to medical licensing to pharmaceutical firms abusing IP practices to “creeping consolidation.” Why is the US health care system so broken? And what can antirust do about it? Catch-up on our coverage of antitrust and the US health care system.

Food for Thought

An excerpt from the second edition of Marion Nestle's book, Food Politics: How the Food Industry Influences Nutrition and Health, out now.

We Need Better Research on the Relationship Between Market Power and Productivity in the Hospital Industry

Antitrust debates have largely ignored questions about the relationship between market power and productivity, and scholars have provided little guidance on the issue due to data limitations. However, data is plentiful on the hospital industry for both market power and operating costs and productivity, and researchers need to take advantage, writes David Ennis.

Lowering the Barriers to Entry for Economics Research in Healthcare

A new collection of scholarly work on the economics of the US healthcare sector is released today. The following is an adaptation of the...

Rethinking How To Achieve Universal Health Care Coverage in the US

Solutions to expanding heath care coverage in the U.S. are often incremental and focus on mitigating market failures. In new research, Katherine Baicker, Amitabh...

George J. Stigler, one of the most influential economists of the 20th century, won the Nobel Prize in Economic Sciences in 1982 “for his seminal studies of industrial structures, functioning of markets, and causes and effects of public regulation.” His research upended the idea that government regulation was effective at correcting private-market failures. Stigler introduced the idea of regulatory capture, in which regulators could be dominated by special interests. These regulators would work for the benefit of large, monied organizations rather than the public good. Catch up on ProMarket's coverage of his legacy.

Competition, Not Consolidation, Is the Key to a Resilient and Innovative Europe

Max von Thun writes that Enrico Letta, Mario Draghi, and Emmanuel Macron are right in demanding a new economic vision for the European Union. However, they are wrong to advocate for corporate consolidation as part of the solution. The EU must pursue competition rather than consolidation if it is to create a robust political economy that can take back power from corporate behemoths, deliver growth and jobs to European citizens, and guarantee the future of the European project.

The Political Economy of Left-Wing Populism in America

Richard Oestreicher explores the recent history of left-wing populism in the United States: its origins, its motivations, and how that populism is likely to mature and transform U.S. politics with it.

The Quest for Next: Keynote Transcript

The following is a transcript of Randy Picker's conversation with Tim Wu on how antitrust shaped competition and innovation in computers and chips, held at the 2024 Stigler Center Antitrust and Competition Conference.

Assessing India’s Ex-Ante Framework for Competition in Digital Markets

Vikas Kathuria evaluates India’s new ex-ante framework to regulate digital markets. He assesses its divergences from Europe’s archetypal Digital Markets Act and the characteristics of India’s political economy that explain these differences.

Should Every Town And Village Have Unfettered Access To The Municipal Bond Market?

Kent Hiteshew and Ivan Ivanov write that the United States municipal bond market suffers from fragmentation, poor liquidity, and inadequate disclosure due to the dominance of small, infrequent issuers who struggle to meet regulatory disclosure requirements. They argue that greater involvement of state-backed municipal bond banks could help address these issues by pooling smaller issuances, reducing borrowing costs, and streamlining disclosure obligations for local governments.

The Role of Economics in Judicial Review

The following is an excerpt from Despoina Mantzari's book, "Courts, Regulators, and the Scrutiny of Economic Evidence," now out at Oxford University Press.

The Political Economy of Right-Wing Populism in the United States

George Hawley explores the economic impulses behind parts of the Republican Party’s populist turn and what this means for the GOP going forward.

COLUMNS

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