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Full-Text Articles in Law

Behaviorally Informed Regulation, Michael S. Barr, Sendhil Mullainathan, Eldar Shafir Jan 2012

Behaviorally Informed Regulation, Michael S. Barr, Sendhil Mullainathan, Eldar Shafir

Book Chapters

Policy makers typically approach human behavior from the perspective of the rational agent model, which relics on normativc, a priori analyses. The model assumes people make insightful, well-planned, highly controlled, and calculated decisions guided by considerations of personal utility. This perspective is promoted in the social sciences and in professional schools and has come to dominate much of the formulation and conduct of policy. An alternative view, developed mostly through empirical behavioral research, and the one we will articulate here, provides a substantially difierent perspective on individual behavior and its policy and regulatory implications. According to the empirical perspective, behavior …


Too Libor, Too Late: Time To Move To A Market Rate, Michael S. Barr Jan 2012

Too Libor, Too Late: Time To Move To A Market Rate, Michael S. Barr

Articles

Barclays has been fined, the British have issued their report, and now the market is anxious for everything to go on as usual with the London Interbank Offer Rate (“LIBOR”). I think that would be a serious mistake. The U.S. and British investigations into rate-fixing by Barclays revealed a widespread culture of pervasive, deceitful conduct in the setting of the most important private sector benchmark for over $300 trillion in derivative contracts and $10 trillion in adjustable-rate loans. It is highly unlikely that Barclays was the only major bank engaging in this conduct, and public investigations and private lawsuits against …


Beyond Microfinance: Creating Opportunities For Women At The Base Of The Pyramid, Deborah Burand Jan 2012

Beyond Microfinance: Creating Opportunities For Women At The Base Of The Pyramid, Deborah Burand

Articles

A growing number of innovative social entrepreneurs are tackling this problem by creating 'busmesses in a bag' mspired by the world's largest direct seller of beauty products - Avon. These very small franchise or consignment businesses are affordable enough to be acquired and operated by women living at the base of the economic pyramid. Just as commercial franchise networks such as Avon have helped people with httle or no experience grow mto successful business owners around the world, microfranchise and microconsignment networks may hold similar promise.


The Financial Crisis And The Path Of Reform, Michael S. Barr Jan 2012

The Financial Crisis And The Path Of Reform, Michael S. Barr

Articles

In the lead-up to the financial crisis, the U.S. financial sector was overleveraged, short-funded, risky, and opaque. "Shadow banking" permitted institutions to avoid comprehensive supervision and capital requirements. Innovation outpaced the ability or willingness of private- and public-sector guardians to rein in risks. An asset bubble fed the system, until the market imploded in the fall of 2008. When the crisis hit, our society found itself illequipped to deal with the failure of leading financial firms. In the wake of the crisis, the Obama Administration proposed a set of reforms that were eventually embodied, in large part, in the Dodd-Frank …