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Cass Sunstein Returns to Harvard
From the WSJ: White House regulatory chief Cass Sunstein is leaving his post this month to return to Harvard Law School, officials said Friday. Mr. Sunstein has long been an advocate of behavorial economics in setting policy, the notion that people will respond to incentives, and has argued for restraint in government regulations. As such, he was ... Cass Sunstein Returns to Harvard
Why Premium Subsidies and the “Employer Mandate” Won’t Solve the ACA’s Adverse Selection Problem
A couple of weeks ago, I argued that the Supreme Court’s decision upholding the constitutionality of the Affordable Care Act will ultimately doom the Act to failure. The problem, I argued, is that the ACA’s guaranteed issue and community rating provisions create a perverse incentive for young, healthy people not to buy insurance until they ... Why Premium Subsidies and the “Employer Mandate” Won’t Solve the ACA’s Adverse Selection Problem
Epstein on Posner’s “Patent Adventurism” in Apple v. Motorola
Richard Epstein replies to Judge Posner’s Apple v. Motorola opinion and follow-up article in The Atlantic. The anti-patent sentiment has just been fueled by a remarkable opinion by Judge Richard Posner, my long-time colleague at the University of Chicago, sitting as a trial judge in the major case, Apple v. Motorola. The high-profile case concerns five ... Epstein on Posner’s “Patent Adventurism” in Apple v. Motorola
FTC sacrifices the rule of law for more flexibility; Commissioner Ohlhausen wisely dissents
On July 31 the FTC voted to withdraw its 2003 Policy Statement on Monetary Remedies in Competition Cases. Commissioner Ohlhausen issued her first dissent since joining the Commission, and points out the folly and the danger in the Commission’s withdrawal of its Policy Statement. The Commission supports its action by citing “legal thinking” in favor of heightened ... FTC sacrifices the rule of law for more flexibility; Commissioner Ohlhausen wisely dissents
Bryan Caplan and the National Review on 100 Years of Milton Friedman
Here. The most interesting part is Caplan’s take on why it is Friedman stands apart from other free-market thinkers: Why does Friedman stand apart from my other idols? In the end, it’s the absence of obscurantism. Friedman makes his points as simply, clearly, and bluntly as possible. He never rambles on. He never hides behind ... Bryan Caplan and the National Review on 100 Years of Milton Friedman
Happy 10th Birthday Sarbanes-Oxley
There are many days that I wish Larry Ribstein were still here, and today is definitely one of those days. He would have had a lot to say about the tenth anniversary of SOX today. He and Henry Butler noted in their book “The Sarbanes-Oxley Debacle: What We’ve Learned; How to Fix It” that: “while ... Happy 10th Birthday Sarbanes-Oxley
Chicago Continues to Thwart Food Trucks
Food trucks must remain at least 200 feet away from restaurants under the new Chicago regulation (HT: Reason). It also appears food trucks must carry a GPS that will allow detection of violations (parking within 200 feet of a restaurant — apparently, any restaurant) which carry a fine of up to $2,000. Protection of restaurants ... Chicago Continues to Thwart Food Trucks
GMU Law & Economics Center Presents “Unlocking the Law: Building on the Work of Professor Larry Ribstein”
I’m very pleased to announce the George Mason Law & Economics Center is hosting a program focusing on our friend and colleague Larry Ribstein’s scholarship on the market for law. Henry Butler and Bruce Kobayashi have put together a really wonderful program of folks coming together not to celebrate Larry’s work — but to ... GMU Law & Economics Center Presents “Unlocking the Law: Building on the Work of Professor Larry Ribstein”
Antitrust Sanctions in The Economist
In light of Barclays and other recent events, The Economist focuses on increasing corporate fines in response to price-fixing violations. That some firms behave badly is nothing new, but the response of the authorities has changed recently. Take cartels. Internationally, fines rose by a factor of one thousand between the 1990s and 2000s. Data from ... Antitrust Sanctions in The Economist
Macey Throws Some Cold Water on the CFPB’s New Mortgage Disclosures
In the WSJ, Professor Macey takes measure of the CFPB’s new mortgage disclosures and finds them lacking: The CFPB is proposing to revise the old forms into a new Loan Estimate Form and Closing Disclosure Form. The old loan form had been five pages; according to the agency website, the new one is three. The ... Macey Throws Some Cold Water on the CFPB’s New Mortgage Disclosures
Off to the Mason LEC Economic Institute for Law Professors
Off to Estes Park for the return of the Mason Law and Economics Center Economic Institute for Law Professors (agenda here) and Law Institute for Economic Professors (agenda here). I will be team-teaching microeconomics in the Economics Institute with friend and co-author Mike Baye (Indiana) for the first few days — and then some vacation. ... Off to the Mason LEC Economic Institute for Law Professors
Why Roberts’ Tax Reasoning Ultimately Damns the Affordable Care Act (But Not in a Good Way)
There’s great irony in Chief Justice Roberts’ reasoning in the recent Affordable Care Act ruling. In reading the ACA to impose a tax for failure to carry health insurance, thereby assuring the Act’s constitutionality, Justice Roberts also doomed the Act to failure. Let me explain. As the government repeatedly stressed, the individual mandate (now interpreted as a disjunctive order either to carry health insurance ... Why Roberts’ Tax Reasoning Ultimately Damns the Affordable Care Act (But Not in a Good Way)
