Regulation

How China’s Anti-Corruption Campaign Impacted Firm Performance

William Megginson, Kedi Wang, and Junjie Xia find in new research that the Chinese Communist Party’s anti-corruption campaign produced worse firm performance by reducing managers’ risk tolerance.

Measuring the Cost of Red Tape

Bruno Pellegrino and Geoff Zheng explain how their novel methodology combining survey data and economic modeling can be used to quantify major questions, such as the economic loss from government regulation. This loss, they find, amounts to $154 billion in seven European countries each year.

Short Selling and the Regional Bank Crisis

Capital markets are central to capitalism and the functioning of the US economy. Yet, short-selling, an integral part of price discovery in capital markets, has been blamed as a contributor to the recent banking crisis. Lawmakers and interest groups have labeled short sellers opportunists who prey on small investors and the public without justification. The authors shed light on this debate and question the merit of the allegations.

Reregulate.

Lee Hepner and William J. McGee respond to Clifford Winston’s ProMarket piece asserting that further deregulation of the airline industry would resolve problems in the industry. Instead, the authors claim a return to regulation would produce better results for travelers.

Economists Are Still Right About Airline Deregulation!

Would increasing regulation of the U.S. airline industry resolve the issues that Americans have heard about and experienced in the past few...

Should We Regulate the Revolving Door of Regulators?

Is the revolving door of top regulators one of the reasons for a lack of good regulation? Based on her recent research,...

Electricity Markets Must Liberalize if We Are To Decarbonize Energy

In new research, Matteo Romagnoli argues that for the electricity sector to decarbonize as part of the broader green transition, regulators must...

How Do We Avoid the Next SVB?

Anil Kashyap explains why the collapse of Silicon Valley Bank and Signature Bank are the result of the failure of the Dodd-Frank...

Economics Must Catch Up On Industrial Policy

Industrial policy was once so out of fashion that it was jokingly called “the policy that shall not be named.” Now it’s...

For the FDA, Fewer Regulations Can Create Safer Products

The US Food and Drug Administration is tasked with protecting consumers from unsafe food and medical products. In new research, Parker Rogers...

LATEST NEWS

The Kroger-Albertsons Merger Threatens Smaller Upstream Suppliers

Much of the conversation of the proposed Kroger-Albertsons merger has focused on the risks to consumers. However, the merger also poses serious implications for the grocers’ upstream suppliers, particularly smaller regional firms.

Why Have Uninsured Depositors Become De Facto Insured?

Due to a change in how the FDIC resolves failed banks, uninsured deposits have become de facto insured. Not only is this dangerous for risk in the banking system, it is not what Congress intends the FDIC to do, writes Michael Ohlrogge.

Merger Law Reaches Acquirer Incentives and Private Equity Strategies

Steven C. Salop argues that Section 7 of the Clayton Act prohibits mergers in which the acquiring firm’s unilateral incentives and business strategy are likely to lessen market competition.

Tim Wu Responds to Letter by Former Agency Chief Economists

Former special assistant to the president for technology and competition policy Tim Wu responds to the November 27 letter signed by former chief economists at the Federal Trade Commission and Justice Department Antitrust Division calling for a separation of the legal and economic analysis in the draft Merger Guidelines.

Can the Public Moderate Social Media?

ProMarket student editor Surya Gowda reviews the arguments made by Paul Gowder in his new book, The Networked Leviathan: For Democratic Platforms.