A new study for the Mercatus Center at George Mason University examines the relationship between income inequality and the number of regulatory steps necessary to start a business. Looking at 175 countries and multiple variables, the study finds that there is a positive relationship between entry regulations and income inequality.
Certificate of need (CON) laws in 21 states restrict acquisition of imaging equipment, including magnetic resonance imaging (MRI), computed tomography (CT), and positron emission tomography (PET) scans. We compare the effect of CON regulations for imaging services provided by hospitals and other providers to determine whether CON laws affect use of imaging services across provider types. We find that services by nonhospital providers, but not by hospital providers, are negatively associated with CON laws. We also find that CON laws reduce the overall number of medical providers, suggesting less availability of imaging services in CON states. We provide evidence consistent with this result showing that residents of CON states are more likely to travel out of state to obtain imaging services than are residents of non-CON states. These results imply that the effect of CON is heterogeneous on hospitals and nonhospitals, affecting the market structure for imaging services.
A new study published by the Mercatus Center at George Mason University investigates more efficient partial annuitization strategies and the rule changes necessary to set these strategies on an equal tax basis with those favored by the Obama administration. The study uses historical simulations to demonstrate the efficiency of combining systematic withdrawals from a dynamically changing asset portfolio with the laddered purchase of immediate life annuities over an extended period of time. The study proposes steps regulators can take to make this genus of retirement strategy more attractive.
A new study published by the Mercatus Center at George Mason University argues that, beginning late in the 19th century, the informal rules that govern fiscal policy began to reward policymakers for increasing spending—even for increasing it beyond the capacity of federal revenues, and therefore at the cost of chronic deficits. Despite numerous legislative attempts to constrain spending over the past 40 years, these informal rules have trumped formal constraints, and the deficit problem has marched steadily on.
A new study for the Mercatus Center at George Mason University examines how government financial statements that follow generally accepted accounting principles provide useful information to decision makers. Local government decision makers should learn how to use this information to design stronger governments that avoid fiscal distress.
A new study for the Mercatus Center at George Mason University is the first to look at broad-based government bidding preferences. It finds that in-state preference policies are associated with a $148 increase per capita in state construction costs and a $158 increase per capita in capital expenditures, which translates to an increase of more than $600 million for the median state in each type of cost.
A study published by the Mercatus Center at George Mason University offers a new and important perspective on how Social Security Disability Insurance (SSDI) creates work disincentives for older healthy workers. The study finds that the value of SSDI benefits, relative to taxes paid, declines as an individual grows older. In particular, SSDI discourages individuals from earning additional income starting around age 40 and from working at all beyond age 60. The paper also reviews a policy option that could reduce this disincentive for older workers. To read the study and learn more about its authors—Gopi Shah Goda of Stanford University, John B. Shoven of Stanford and the National Bureau of Economic Research (NBER), and Sita Nataraj Slavov of George Mason University and NBER—please see “Work Incentives in the Social Security Disability Benefit Formula.”…
Nate Silver, today’s most influential statistician and founder of the award-winning data website FiveThirtyEight, will join Tyler Cowen for a wide-ranging, intellectual dialogue as part of the Conversations with Tyler series.
History has shown that tax reforms seldom last when special interests have substantial incentives to lobby Congress for tax breaks. Making the tax code as simple—by taxing a broad base at the same low rate—and as transparent as possible will help reduce the ability and incentives to reverse future tax reforms.