This paper finds that alleged cybersecurity market failures are, at a minimum, much smaller than they first appear and, consequently, that attempts to correct them through naive government regulation run the serious risk of doing more harm than good.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 gave the U.S. Securities and Exchange Commission (SEC) the authority to adopt a proxy access rule. Though the legislation urged an exemption for companies with less than $75 million in market capitalization, the SEC unexpectedly failed to provide a permanent exemption from the rule for those companies. This paper finds that, for the roughly 900 publicly traded companies studied with under $75 million in market capitalization, the proxy access rule caused on the order of $335 million in shareholder losses.
This working paper demonstrates that the low-quality analysis for the ACA regulations was a predictable result of the way that the administration and Congress chose to manage the regulatory process. Presidential and congressional decisions, in turn, reflected the political incentives both actors faced in 2010. To promote transparency and informed decision-making, additional checks and balances in the regulatory process are needed so politics will not short-circuit analysis.
This working paper finds that the quality and use of analysis for the ACA interim final rules falls well below that of conventional notice-and-comment rulemaking by other agencies, including HHS. The poor quality of analysis in the examined ACA rules is comparable to the quality of analysis that accompanied a series of interim final homeland security regulations issued by the Bush administration following 9/11. This suggests that institutional—rather than partisan—factors explain why the quality of regulatory analysis declines when agencies implement significant presidential priorities on short deadlines.
Federal agencies issued eight major “interim final regulations” in 2010 to quickly implement major provisions of the ACA. This working paper demonstrates that analyses for these regulations were seriously incomplete, often omitting significant benefits, costs, or regulatory alternatives. Analysis of fairness was cursory at best.
Efforts to quantify costs and benefits of regulations usually take a snapshot approach, looking at individual regulations in isolation rather than considering the cumulative effects of the regulatory system as a whole. This paper lays the groundwork for an alternative to the usual snapshot approach: one that explains how the overall size, complexity, and style of the regulatory system can change costs and benefits.
Welcome to the Federal Communications Commission‘s 15th Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless, released June 27, 2011. The FCC Report makes mistakes with the Commission‘s own data. It contains typos. It omits crucial, relevant, and available facts. It wastes page after page discussing tangential issues. This paper discusses the economic implications of the FCC's actions.
The nation's economy at mid-year is operating like a three-lane expressway with one lane closed. GDP growth is breaking 2.0% when it should be 3.0%. But worse than that, the cars moving in the two open lanes are running on borrowed fuel that will someday have to be paid back.
The Mercatus Center’s clear-headed research is shaping the conversation on government spending, fiscal austerity, and financial market regulation. Come hear what the former New Zealand cabinet minister would do in this country to promote economic growth and fiscal responsibility.
"It [an incentive program geared toward a specific company] tends to undermine competition and lead to monopolistic behavior, so that means higher prices for consumers, potentially higher profits for producers,"
Like most academic economists, Mr. Cowen focuses on the next quarter-century rather than the next quarter. But new technologies like artificial intelligence and online education, increased domestic energy production and slowing growth in the cost of health care have prompted Mr. Cowen to reappraise the country’s prospects.