Economic Policy Commons^™

The Economic Ferocity Of Policy, Giana Depaul

Helm's School of Government Conference - American Revival: Citizenship & Virtue

Each day, as the Dow Jones rises and falls, Congress similarly passes and fails legislation. These two seemingly continuous cycles intersect to the point that the two structures appear affixed. For centuries, this has posed an age-old question: is it policy that influences the economic system or is it the economic system itself that molds policy decision-making? Renowned economist Adam Smith is famous for his works detailing the autonomous nature of the economic system. Smith views policy as only a small roadblock in the master strategy of the economic flow of life. The Great Depression and the 2008 Recession, however, …

Antitrust In The Age Of Trump, Stephen Langeland

Helm's School of Government Conference - American Revival: Citizenship & Virtue

Calls for regulation of major tech giants are currently ringing out from both the left and right sides of the political spectrum, largely for different reasons (Soave 2020). The current DOJ antitrust suit against Google was undermined by murmurs of political motivation as former-Attorney General William Barr personally played a key role in pushing the investigation forward into a lawsuit. (Birnbaum 2020). Prior examples of this can be seen in the reportedly political motivation of the DOJ’s unsuccessful attempt to block the 2017 merger of President Trump’s nemesis CNN’s parent company Time Warner and AT&T following President Trump’s campaign trail …

Paradise Found? Food Transportation Regulation: A Detour Through Regulatory Purgatory, William Nash

Journal of Food Law & Policy

On January 31, 2014, the Food and Drug Administration ("FDA") issued a Notice of Proposed Rulemaking ("NPRM") that would set requirements for shippers, carriers and receivers of food transported in intrastate and interstate commerce. The NPRM marks a potentially important step in a long history of the (non-)regulation of food transportation. In Parts I and II, this paper will provide some context of the history of food transportation, as well as the major incidents that placed the food transportation industry on the regulatory map. In Parts III and IV, the paper will consider the history of food transportation regulation from …

Reflections On The Effects Of Federalism On Opioid Policy, Matthew B. Lawrence

Dickinson Law Review (2017-Present)

No abstract provided.

Jpmorgan Chase London Whale H: Cross-Border Regulation, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

As a global financial service provider, JPMorgan Chase (JPM) is supervised by banking regulatory agencies in different countries. Bruno Iksil, the derivatives trader primarily responsible for the $6 billion trading loss in 2012, was based in JPM’s London office. This office was regulated both by the Office of the Comptroller of the Currency (OCC) of the United States (US) and by the Financial Services Authority (FSA), which served as the sole regulator of all financial services in the United Kingdom (UK). Banking regulators in the US and the UK have entered into agreements with one another to define basic parameters …

Jpmorgan Chase London Whale G: Hedging Versus Proprietary Trading, Arwin G. Zeissler, Andrew Metrick

Journal of Financial Crises

In December 2013, the primary United States financial regulatory agencies jointly adopted final rules to implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is often referred to as the “Volcker Rule”. Section 619 prohibits banks from engaging in activities considered to be particularly risky, including proprietary trading and owning hedge funds or private equity funds. Banking regulators designed the final rule against proprietary trading in part to prevent losses like the $6 billion London Whale loss that took place in 2012 at JPMorgan Chase. Given the controversial nature of the Volcker Rule, it is …

Public Interests And Economic Regulation Of Gambling, Rein Halbersma, Joost Poort

International Conference on Gambling & Risk Taking

In the Netherlands, the Betting and Gaming Act from 1964 largely determines the current structure of gambling markets. The policy was to channel consumers to a limited number of licensed operators. This led to state-owned monopolies for lotteries, sports betting and casinos, a private monopoly for horse race betting, a limited number of privately owned charity lotteries, and a large number of private slot machines operators.

Pending legislation proposes an online market without a limit on the number of operators. Furthermore, state ownership will be phased out, and introduced legislation to privatizing and expanding the number of casinos. The current …

The State And Future Of Autonomous Vehicle Regulation In The United States, Nikolay Nyashin

Dissertations, Theses, and Capstone Projects

Autonomous vehicle technology is poised to revolutionize transit around the world. There are currently tens of private companies either testing or building autonomous vehicles, including industry juggernauts like Ford and Google. This new mode of transportation falls into a regulatory grey area. Once cars reach full autonomy, governments will have to decide what entities will regulate them, where they will be allowed to drive, who will be responsible for them and a host of other issues. In some municipalities like San Francisco and Phoenix, autonomous vehicles (AVs) are being tested on public streets in real life conditions. Meanwhile, in 2017, …

Progressive Antitrust, Herbert J. Hovenkamp

All Faculty Scholarship

Several American political candidates and administrations have both run and served under the “progressive” banner for more than a century, right through the 2016 election season. For the most part these have pursued interventionist antitrust policies, reflecting a belief that markets are fragile and in need of repair, that certain interest groups require greater protection, or in some cases that antitrust policy is an extended arm of regulation. This paper argues that most of this progressive antitrust policy was misconceived, including that reflected in the 2016 antitrust plank of the Democratic Party. The progressive state is best served by a …

The European Company, Pieter Sanders

Georgia Journal of International & Comparative Law

No abstract provided.

The Mess At Morgan: Risk, Incentives And Shareholder Empowerment, Jill E. Fisch

All Faculty Scholarship

The financial crisis of 2008 focused increasing attention on corporate America and, in particular, the risk-taking behavior of large financial institutions. A growing appreciation of the “public” nature of the corporation resulted in a substantial number of high profile enforcement actions. In addition, demands for greater accountability led policymakers to attempt to harness the corporation’s internal decision-making structure, in the name of improved corporate governance, to further the interest of non-shareholder stakeholders. Dodd-Frank’s advisory vote on executive compensation is an example.

This essay argues that the effort to employ shareholders as agents of public values and, thereby, to inculcate corporate …

Introduction To The Workplace Constitution From The New Deal To The New Right, Sophia Z. Lee

All Faculty Scholarship

Today, most American workers do not have constitutional rights on the job. As The Workplace Constitution shows, this outcome was far from inevitable. Instead, American workers have a long history of fighting for such rights. Beginning in the 1930s, civil rights advocates sought constitutional protections against racial discrimination by employers and unions. At the same time, a conservative right-to-work movement argued that the Constitution protected workers from having to join or support unions. Those two movements, with their shared aim of extending constitutional protections to American workers, were a potentially powerful combination. But they sought to use those protections to …

Regulation Of Hydraulic Fracturing Of Shale Gas Formations In The United States, Fatemeh Bagheri

Pepperdine Policy Review

The practice of hydraulic fracturing has become increasingly common over the years since it has been looked at to replace energy derived from coal. Though hydraulic fracturing may be one of the better forms of obtaining energy, it comes with its own set of problems ranging from environmental problems to health problems if the appropriate safeguards are not implemented when completing the process. Regulations at the local, state, and federal level are assessed to determine which entity should regulate the practice and many technologies are reviewed in order to offer suggestions which allow the process to be completed without significant …

The Classical American State And The Regulation Of Morals, Herbert J. Hovenkamp

All Faculty Scholarship

The United States has a strong tradition of state regulation that stretches back to the Commonwealth ideal of Revolutionary times and grew steadily throughout the nineteenth century. But regulation also had more than its share of critics. A core principle of Jacksonian democracy was that too much regulation was for the benefit of special interests, mainly wealthier and propertied classes. The ratification of the Fourteenth Amendment after the Civil War provided the lever that laissez faire legal writers used to make a more coherent Constitutional case against increasing regulation. How much they actually succeeded has always been subject to dispute. …

Regulating And Deregulating The Public Utilities 1830–2010, Judith Clifton Dr.

Judith Clifton

History can provide invaluable insights into important issues of the economic and social regulation of utilities, and offer lessons towards future debates. But the history of utility regulation – which speaks of changing, diverse and complex experiences around the world – was, unfortunately, sidelined or marginalised when economists and policymakers enthusiastically embraced the question of how to reform the utilities from the 1970s. This paper provides an overview of the three, overarching, `waves' of utility regulation from the nineteenth century to the present, documenting how, when and why the ways in which the roles of the state, the market and …

From National Monopoly To Multinational Corporation: How Regulation Shaped The Road Towards Telecommunications Internationalisation, Judith Clifton, Daniel Díaz-Fuentes, Francisco Comín

Judith Clifton

One of the consequences of major regulatory reform of the telecommunications sector from the end of the 1970s – particularly, privatisation, liberalisation and deregulation – was the establishment of a new business environment which permitted former national telecommunications monopolies to expand abroad. From the 1990s, a number of these firms, particularly those based in Europe, joined the rankings of the world's leading multinational corporations. Their internationalisation was uneven, however: while some firms internationalised strongly, others ventured abroad much slower. This article explores how the regulatory framework within which telecommunications incumbents evolved over the long-term shaped their subsequent, uneven, paths to …

The Political Economy Of Telecoms And Electricity Internationalization In The Single Market, Judith Clifton, Daniel Díaz-Fuentes, Revuelta Julio

Judith Clifton

As a consequence of liberalization policies in the European Union (EU), a number of formerly inward-looking incumbents in telecommunications and electricity transformed themselves into some of the world’s leading Multinationals. The relationship between liberalization and incumbent internationalization, however, is contested. Three political economy arguments on this relationship are tested. The first claims that incumbents most exposed to domestic liberalization would internationalise most. The second asserts that incumbents operating where liberalization was restricted could exploit monopolistic rents to finance internationalisation. The third argument claims that a diversity of paths will be adopted by countries and incumbents vis-à-vis liberalization and internationalization. Using …

Evaluating Eu Policies On Public Services: A Citizens' Approach, Judith Clifton, Daniel Díaz-Fuentes

Judith Clifton

This article evaluates EU policies on public services – particularly public network services - from the citizens´ point of view. It is first argued that citizens´ perceptions are important because the provision of fundamental services is at stake and because they constitute the infrastructure necessary for social and economic development. Citizens’ “voice” can, therefore, be known, analysed and used in the design of improved policy on public services along with other indicators. Changing EU policy on public services is synthesised and classified into two main phases in section two. Citizen satisfaction with public services as revealed through surveys from 1997 …

Two Cheers For Feasible Regulation: A Modest Response To Masur And Posnera, David M. Driesen

College of Law - Faculty Scholarship

This article compares the relative merits of feasibility and cost-benefit based regulation, responding to a recent article by Jonathan Masur and Eric Posner on this topic. Normatively, it shows that the lack of correlation between non-subsistence consumption and welfare supports the argument that regulation should be strict, unless widespread plant shutdowns, which would seriously impact well-being, are involved. It shows that a host of practical defects Masur and Posner find in feasibility analysis would infect cost-benefit analysis as well. In light of the importance of cost's distribution, serious regard for individual well-being supports the feasibility principle better than a cost-benefit …

Ip And Antitrust: Reformation And Harm, Christina Bohannan, Herbert J. Hovenkamp

All Faculty Scholarship

Antitrust and intellectual property law both seek to improve economic welfare by facilitating competition and investment in innovation. At various times both antitrust and IP law have wandered off this course and have become more driven by special interests. Today, antitrust and IP are on very different roads to reform. Antitrust reform began in the late 1970s with a series of Supreme Court decisions that linked the plaintiff’s harm and right to obtain a remedy to the competition - furthering goals of antitrust policy. Today, patent law has begun its own reform journey, but it is in a much earlier …

Is The European Union Ready For Fdi From Emerging Markets?, Judith Clifton, Daniel Díaz-Fuentes

Judith Clifton

This chapter asks whether the European Union Member States are ready for inward Foreign Direct Investment from the Emerging Markets. It concludes that European Union Member States have relatively open Foreign Direct Investment regimes in the international context, and yet instances of protectionism have been apparent in the recent period. However, protectionism has occurred both vis-a-vis Foreign Direct Investment from the Global South as well as from within the European Union, particularly in the so-called 'strategic' industries.

The Missing Instrument: Dirty Input Limits, David M. Driesen, Amy Sinden

College of Law - Faculty Scholarship

This article evaluates an environmental protection instrument that the literature has hitherto largely overlooked, Dirty Input Limits (DILs), quantitative limits on the inputs that cause pollution. DILs provide an alternative to cumbersome output-based emissions trading and performance standards. DILs have played a role in some of the world's most prominent environmental success stories. They have also begun to influence climate change policy, because of the impossibility of imposing an output-based cap on transport emissions. We evaluate DILs' administrative advantages, efficiency, dynamic properties, and capacity to better integrate environmental protection efforts. DILs, we show, not only have significant advantages that make …

Insurance Against Misinformation In The Securities Market, Tom Baker

All Faculty Scholarship

Prepared at the request of the Task Force to Modernize Securities Legislation in Canada, this study describes and evaluates evaluate a new capital markets insurance concept: securities misinformation insurance. This new insurance would compensate investors for losses caused by securities law violations. The most powerful objection to this new concept is that investors do not need a new insurance program for securities misinformation losses. Individual and institutional investors already can spread securities misinformation losses by holding a diversified portfolio. Nevertheless, a securities misinformation insurance program has the potential to provide systemic benefits: improved compliance with securities laws (resulting from cost …

Standards Ownership And Competition Policy, Herbert J. Hovenkamp

All Faculty Scholarship

Antitrust law is a blunt instrument for dealing with many claims of anticompetitive standard setting. Antitrust fact finders lack the sophistication to pass judgment on the substantive merits of a standard. In any event, antitrust is not a roving mandate to question bad standards. It requires an injury to competition, and whether the minimum conditions for competitive harm are present can often be determined without examining the substance of the standard itself.

When government involvement in standard setting is substantial antitrust challenges should generally be rejected. The petitioning process in a democratic system protects even bad legislative judgments from collateral …

Federalism And Antitrust Reform, Herbert J. Hovenkamp

All Faculty Scholarship

Currently the Antitrust Modernization Commission is considering numerous proposals for adjusting the relationship between federal antitrust authority and state regulation. This essay examines two areas that have produced a significant amount of state-federal conflict: state regulation of insurance and the state action immunity for general state regulation. It argues that no principle of efficiency, regulatory theory, or federalism justifies the McCarran-Ferguson Act, which creates an antitrust immunity for state regulation of insurance. What few benefits the Act confers could be fully realized by an appropriate interpretation of the state action doctrine. Second, the current formulation of the antitrust state action …

‘Empowering Europe’S Citizens’? Towards A Charter For Services Of General Interest, Judith Clifton, Daniel Díaz-Fuentes, Francisco Comín

Judith Clifton

This article analyses the development of the European Union (EU) project of a Charter for Services of General Interest (SGI) from the mid-1990s to the publication of the White Paper on Services of General Interest and the draft European Constitution in 2004. Though service charters are often associated with New Public Management (NPM) reforms related to privatization, they are also an integral part of the process of EU institution building, and need to be understood alongside developments such as the Charter of Fundamental Rights. Using a four-stage model of international NPM convergence analysis four phases of the Charter for SGI …

The Role Of Politics And Policy In Television Regulation, Christopher S. Yoo

All Faculty Scholarship

This article is a reply to Thomas Hazlett’s commentary on my article entitled, “Rethinking the Commitment to Free, Local Television.” Although politics and public choice theory represent an important approach for analyzing government actions, economic policy still exercises some influence over the regulation of television. On the one hand, we agree that the regulatory preference of free television and local programming is more a reflection of political considerations than economic policy and that the importance of promoting communities of interest over geographic communities, and the potential for new services such as Digital Audio Radio Services to benefit consumers. On the …

Enron And The Dark Side Of Shareholder Value, William W. Bratton

All Faculty Scholarship

No abstract provided.

Differentiating Regulation Of Public And Private Institutions: A Preliminary Inquiry, Jonathan G.S. Koppell

Publications from President Jonathan G.S. Koppell

Twenty years ago, James Q. Wilson and Patricia Rachal argued that government cannot regulate itself. In an era of revived federalism, increased reliance on contractors, and proliferation of quasi-public organizations, the importance of government self-regulation is greater than ever. This paper tests an underlying assumption of Wilson and Rachal's claim: that regulation of public and private organizations can be differentiated. Employing a meta-research design, this pilot study uses existing regulatory case studies to create "regulatory relationship profiles" for public and private organizations. These profiles include information on the structure of the regulator, the intent of the regulation, the enforcement tools …

Public Utility Control And Regulation In Maine, Vance Gerald Springer

Electronic Theses and Dissertations

Although there sprang up a widespread movement for the establishment of commissions by the states, the movement did not make a great deal of headway until about 1905. Due to the depression of 1873 all the earlier commissions were repealed except that of Illinois. With the establishment of the Interstate Commerce Commission in 1887 the movement for state commissions was resumed, and by means of new laws and successive amendments to old laws, the movement for a strong type of commission continued unabated.

About 1905 another reform and expansion movement set in in the movement for a strong public utilities …