front cover of African Successes, Volume I
African Successes, Volume I
Government and Institutions
Edited by Sebastian Edwards, Simon Johnson, and David N. Weil
University of Chicago Press, 2016
Studies of African economic development frequently focus on the daunting challenges the continent faces. From recurrent crises to ethnic conflicts and long-standing corruption, a raft of deep-rooted problems has led many to regard the continent as facing many hurdles to raise living standards. Yet Africa has made considerable progress in the past decade, with a GDP growth rate exceeding five percent in some regions. The African Successes series looks at recent improvements in living standards and other measures of development in many African countries with an eye toward identifying what shaped them and the extent to which lessons learned are transferable and can guide policy in other nations and at the international level.
           
The first volume in the series, African Successes: Governments and Institutions considers the role governments and institutions have played in recent developments and identifies the factors that enable economists to predict the way institutions will function.
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After the Flood
How the Great Recession Changed Economic Thought
Edited by Edward L. Glaeser, Tano Santos, and E. Glen Weyl
University of Chicago Press, 2017
The past three decades have been characterized by vast change and crises in global financial markets—and not in politically unstable countries but in the heart of the developed world, from the Great Recession in the United States to the banking crises in Japan and the Eurozone. As we try to make sense of what caused these crises and how we might reduce risk factors and prevent recurrence, the fields of finance and economics have also seen vast change, as scholars and researchers have advanced their thinking to better respond to the recent crises.

A momentous collection of the best recent scholarship, After the Flood illustrates both the scope of the crises’ impact on our understanding of global financial markets and the innovative processes whereby scholars have adapted their research to gain a greater understanding of them. Among the contributors are José Scheinkman and Lars Peter Hansen, who bring up to date decades of collaborative research on the mechanisms that tie financial markets to the broader economy; Patrick Bolton, who argues that limiting bankers’ pay may be more effective than limiting the activities they can undertake; Edward Glaeser and Bruce Sacerdote, who study the social dynamics of markets; and E. Glen Weyl, who argues that economists are influenced by the incentives their consulting opportunities create.
 
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Allies of the State
China's Private Entrepreneurs and Democratic Change
Jie Chen and Bruce J. Dickson
Harvard University Press, 2010
Jie Chen and Bruce J. Dickson draw on extensive fieldwork as they explore the extent to which China’s private sector supports democracy, surveying more than 2,000 entrepreneurs in five coastal provinces with over 70 percent of China’s private enterprises.The authors examine who the private entrepreneurs are, how the party-state shapes this group, and what their relationship to the state is. China’s entrepreneurs are closely tied to the state through political and financial relationships, and these ties shape their views toward democracy. While most entrepreneurs favor multi-candidate elections under the current one-party system, they do not support a system characterized by multi-party competition and political liberties, including the right to demonstrate. The key to regime support lies in the capitalists’ political beliefs and their assessment of the government’s policy performance. China’s capitalists tend to be conservative and status-quo oriented, not likely to serve as agents of democratization.This is a valuable contribution not only to the debates over the prospects for democracy in China but also to understanding the process of democratization around the globe.
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American Economic Policy in the 1980s
Edited by Martin Feldstein
University of Chicago Press, 1994
Destined to become the standard guide to the economic policy of the United States during the Reagan era, this book provides an authoritative record of the economic reforms of the 1980s.

In his introduction, Martin Feldstein provides compelling analysis of policies with which he was closely involved as chairman of the Council of Economic Advisers during the Reagan administration: monetary and exchange rate policy, tax policy, and budget issues. Other leading economists and policymakers examine a variety of domestic and international issues, including monetary and exchange rate policy, regulation and antitrust, as well as trade, tax, and budget policies.

The contributors to this volume are Alberto Alesina, Phillip Areeda, Elizabeth Bailey, William F. Baxter, C. Fred Bergsten, James Burnley, Geoffrey Carliner, Christopher DeMuth, Douglas W. Elmendorf, Thomas O. Enders, Martin Feldstein, Jeffrey A. Frankel, Don Fullerton, William M. Isaac, Paul L Joskow, Paul Krugman, Robert E. Litan, Russell B. Long, Michael Mussa, William A. Niskanen, Roger G. Noll, Lionel H. Olmer, Rudolph Penner, William Poole, James M. Poterba, Harry M. Reasoner, William R. Rhodes, J. David Richardson, Charles Schultze, Paula Stern, David Stockman, William Taylor, James Tobin, W. Kip Viscusi, Paul A. Volcker, Charles E. Walker, David A. Wise, and Richard G. Woodbury.
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The Antitrust Paradigm
Restoring a Competitive Economy
Jonathan B. Baker
Harvard University Press, 2019

A new and urgently needed guide to making the American economy more competitive at a time when tech giants have amassed vast market power.

The U.S. economy is growing less competitive. Large businesses increasingly profit by taking advantage of their customers and suppliers. These firms can also use sophisticated pricing algorithms and customer data to secure substantial and persistent advantages over smaller players. In our new Gilded Age, the likes of Google and Amazon fill the roles of Standard Oil and U.S. Steel.

Jonathan Baker shows how business practices harming competition manage to go unchecked. The law has fallen behind technology, but that is not the only problem. Inspired by Robert Bork, Richard Posner, and the “Chicago school,” the Supreme Court has, since the Reagan years, steadily eroded the protections of antitrust. The Antitrust Paradigm demonstrates that Chicago-style reforms intended to unleash competitive enterprise have instead inflated market power, harming the welfare of workers and consumers, squelching innovation, and reducing overall economic growth. Baker identifies the errors in economic arguments for staying the course and advocates for a middle path between laissez-faire and forced deconcentration: the revival of pro-competitive economic regulation, of which antitrust has long been the backbone.

Drawing on the latest in empirical and theoretical economics to defend the benefits of antitrust, Baker shows how enforcement and jurisprudence can be updated for the high-tech economy. His prescription is straightforward. The sooner courts and the antitrust enforcement agencies stop listening to the Chicago school and start paying attention to modern economics, the sooner Americans will reap the benefits of competition.

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Arming America through the Centuries
War, Business, and Building a National Security State
Benjamin Franklin Cooling
University of Tennessee Press, 2023

While many associate the concept commonly referred to as the “military-industrial complex” with President Dwight D. Eisenhower’s 1961 farewell address, the roots of it existed two hundred years earlier. This concept, as Benjamin Franklin Cooling writes, was “part of historical lore” as a burgeoning American nation discovered the inextricable relationship between arms and the State. In Arming America through the Centuries, Cooling examines the origins and development of the military-industrial complex (MIC) over the course of American history. He argues that the evolution of America’s military-industrial-business-political experience is the basis for a contemporary American Sparta. Cooling explores the influence of industry on security, the increasing prevalence of outsourcing, ever-present economic and political influence, and the evolving nature of modern warfare. He connects the budding military-industrial relations of the colonial era and Industrial Revolution to their formal interdependence during the Cold War down to the present-day resurrection of Great Power competition. Across eight chronological chapters, Cooling weaves together threads of industry, finance, privatization, appropriations, and technology to create a rich historical tapestry of US national defense in one comprehensive volume.

Integrating information from both recent works as well as canonical, older sources, Cooling’s ambitious single-volume synthesis is a uniquely accessible and illuminating survey not only for scholars and policymakers but for students and general readers as well.

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Balance of Power
Central Banks and the Fate of Democracies
Éric Monnet
University of Chicago Press, 2024
Central banks now stand between societies and collapse, but are they still democratic?

Two decades of financial crises have dramatically expanded central banks’ powers. In 2008, and then again in 2020, unelected banking officials found themselves suddenly responsible for the public welfare—not just because it was necessary but based on an idea that their independence from political systems would insulate them from the whims of populism. Now, as international crises continue and the scope of monetary interventions grows in response, these bankers have become increasingly powerful.

In Balance of Power, economist and historian Éric Monnet charts the rise of central banks as the nominally independent—but unavoidably political—superpowers of modern societies. This trajectory, Monnet argues, is neither inevitable nor unstoppable. By embracing the political natures of today’s central banks, we can construct systems of accountability for how they interact with states and societies. Monnet shows that this effort will do more than guard against unjust power; it will put the banks to work for greater, more democratic ends.

With existential challenges looming and the work of the Federal Reserve and European Central Bank more important than ever, Balance of Power offers a trenchant case for what this century’s central banks can—and must—become.
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Better Living through Economics
John J. Siegfried
Harvard University Press, 2010

Better Living Through Economics consists of twelve case studies that demonstrate how economic research has improved economic and social conditions over the past half century by influencing public policy decisions.

Economists were obviously instrumental in revising the consumer price index and in devising auctions for allocating spectrum rights to cell phone providers in the 1990s. But perhaps more surprisingly, economists built the foundation for eliminating the military draft in favor of an all-volunteer army in 1973, for passing the Earned Income Tax Credit in 1975, for deregulating airlines in 1978, for adopting the welfare-to-work reforms during the Clinton administration, and for implementing the Pension Reform Act of 2006 that allowed employers to automatically enroll employees in a 401(k). Other important policy changes resulting from economists’ research include a new approach to monetary policy that resulted in moderated economic fluctuations (at least until 2008!), the reduction of trade impediments that allows countries to better exploit their natural advantages, a revision of antitrust policy to focus on those market characteristics that affect competition, an improved method of placing new physicians in hospital residencies that is more likely to keep married couples in the same city, and the adoption of tradable emissions rights which has improved our environment at minimum cost.

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Billionaires and Stealth Politics
Benjamin I. Page, Jason Seawright, and Matthew J. Lacombe
University of Chicago Press, 2018
In 2016, when millions of Americans voted for Donald Trump, many believed his claims that personal wealth would free him from wealthy donors and allow him to “drain the swamp.” But then Trump appointed several billionaires and multimillionaires to high-level positions and pursued billionaire-friendly policies, such as cutting corporate income taxes. Why the change from his fiery campaign rhetoric and promises to the working class? This should not be surprising, argue Benjamin I. Page, Jason Seawright, and Matthew J. Lacombe: As the gap between the wealthiest and the rest of us has widened, the few who hold one billion dollars or more in net worth have begun to play a more and more active part in politics—with serious consequences for democracy in the United States.

Page, Seawright, and Lacombe argue that while political contributions offer a window onto billionaires’ influence, especially on economic policy, they do not present a full picture of policy preferences and political actions. That is because on some of the most important issues, including taxation, immigration, and Social Security, billionaires have chosen to engage in “stealth politics.” They try hard to influence public policy, making large contributions to political parties and policy-focused causes, leading policy-advocacy organizations, holding political fundraisers, and bundling others’ contributions—all while rarely talking about public policy to the media. This means that their influence is not only unequal but also largely unaccountable to and unchallengeable by the American people. Stealth politics makes it difficult for ordinary citizens to know what billionaires are doing or mobilize against it. The book closes with remedies citizens can pursue if they wish to make wealthy Americans more politically accountable, such as public financing of political campaigns and easier voting procedures, and notes the broader types of reforms, such as a more progressive income tax system, that would be needed to increase political equality and reinvigorate majoritarian democracy in the United States.
 
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The Blame Business
The Uses and Misuses of Accountability
Stephen Fineman
Reaktion Books, 2015
Whenever anything goes wrong our first instinct is often to find someone to blame. Blame infuses our society in myriad ways, seeding rancor and revenge, dividing lovers, coworkers, communities, and nations. Yet blame, appropriately placed and managed, safeguards moral order and legal culpability. In this book, Stephen Fineman explores this duality inherent in blame, taking us on a fascinating journey across blame’s sometimes bitter—sometimes just—landscape.
           
Fineman focuses on blame’s roots and enduring manifestations, from the witch hunts of the past to today’s more buttoned-up scapegoating and stigmatization; from an individual’s righteous anger to entire cultures shaped by its power. Addressing our era of increasing unease about governance in public and private enterprises, he delves behind the scenes of organizations infected with blame, profiling the people who keep its plates spinning. With a critical eye, he examines the vexing issue of public accountability and the political circus that so often characterizes our politicians and corporations lost in their “blame games.”

Ultimately, Fineman raises the challenging question of how we might mitigate blame’s corrosive effects, asking crucial and timely questions about the limits of remorse and forgiveness, the role of state apologies for historical wrongdoings, whether restorative justice can work, and many other topics. An absorbing look at something we all know intimately, this book deepens our understanding of blame and how it shapes our lives.
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Business, Banking, and Politics
The Case of British Steel, 1918–1939
Steven Tolliday
Harvard University Press, 1987

During the 1920s, the "black decade" of British steel, nearly everyone agreed that the industry's revival depended on replacing obsolete equipment and instituting modern technologies that would increase production and decrease costs. Despite consensus, these goals were not reached and, even after wartime and postwar reconstruction needs were met, the industry continued its steady decline. Steven Tolliday advances three hypotheses for this stagnation.

First, the problems of British steel, Tolliday suggests, were embedded in the structures of individual firms and of the industry as a whole—both unchanged since the prosperous years of the nineteenth century—and after World War I fractured by conflicting interests (share holders, managers, family members, bankers, creditors). Second, the two external institutions that might have enforced reorganization and modernization—the banking system and the government—were overcautious, had complex and contradictory goals, and lacked the management skills to exploit their potential financial leverage. Third, the many attempts at reform by banks and government collapsed because these establishments, like the industry itself, were constrained by traditions and antiquated structural rigidities.

This excellent example of a new direction in business history—analysis of a given industry by conveying the interaction of technology, markets, companies, financial institutions, and government—brings many important theoretical questions into focus and also contributes substantially to the scrutiny of specific problems, such as why the British economy appears to be in irrevocable decline.

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The Changing Frontier
Rethinking Science and Innovation Policy
Edited by Adam B. Jaffe and Benjamin F. Jones
University of Chicago Press, 2015
In 1945, Vannevar Bush, founder of Raytheon and one-time engineering dean at MIT, delivered a report to the president of the United States that argued for the importance of public support for science, and the importance of science for the future of the nation. The report, Science: The Endless Frontier, set America on a path toward strong and well-funded institutions of science, creating an intellectual architecture that still defines scientific endeavor today.

In The Changing Frontier, Adam B. Jaffe and Benjamin Jones bring together a group of prominent scholars to consider the changes in science and innovation in the ensuing decades. The contributors take on such topics as changes in the organization of scientific research, the geography of innovation, modes of entrepreneurship, and the structure of research institutions and linkages between science and innovation. An important analysis of where science stands today, The Changing Frontier will be invaluable to practitioners and policy makers alike.
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The Changing Roles of Debt and Equity in Financing U.S. Capital Formation
Edited by Benjamin M. Friedman
University of Chicago Press, 1982

This volume, consisting of papers presented at a conference held at Williamsburg, Va., 2-3 April 1981, is a progress report on the National Bureau of Economic Research project, The Changing Roles of Debt and Equity in Financing U.S. Capital Formation. The National Bureau has undertaken this project—including the conference, the research described in this volume, and the publication of the volume itself—with the support of the American Council of Life Insurance.

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Contraband
Louis Mandrin and the Making of a Global Underground
Michael Kwass
Harvard University Press, 2014

Louis Mandrin led a gang of bandits who brazenly smuggled contraband into eighteenth-century France. Michael Kwass brings new life to the legend of this Gallic Robin Hood and the thriving underworld he helped to create. Decades before the storming of the Bastille, surging world trade excited a revolution in consumption that transformed the French kingdom. Contraband exposes the dark side of this early phase of globalization, revealing hidden connections between illicit commerce, criminality, and popular revolt.

France's economic system was tailor-made for an enterprising outlaw like Mandrin. As French subjects began to crave colonial products, Louis XIV lined the royal coffers by imposing a state monopoly on tobacco from America and an embargo on brilliantly colored calico cloth from India. Vigorous black markets arose through which traffickers fed these exotic goods to eager French consumers. Flouting the law with unparalleled panache, Mandrin captured widespread public attention to become a symbol of a defiant underground.

This furtive economy generated violent clashes between gangs of smugglers and customs agents in the borderlands. Eventually, Mandrin was captured by French troops and put to death in a brutal public execution intended to demonstrate the king's absolute authority. But the spectacle only cemented Mandrin's status as a rebel folk hero in an age of mounting discontent. Amid cycles of underground rebellion and agonizing penal repression, the memory of Mandrin inspired ordinary subjects and Enlightenment philosophers alike to challenge royal power and forge a movement for radical political change.

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Contrived Competition
Regulation and Deregulation in America
Richard H. K. Vietor
Harvard University Press, 1994
This book explains how four major firms—American Airlines, El Paso Natural Gas, AT&T, and Bank America—and their respective managements were challenged by the deregulation of markets starting in the late 1970s. The four stories illustrate the dynamic process of market restructuring and organizational adjustment, as well as the ways in which managers and regulators painfully learned to operate effectively as their economic and political environments shifted around them.
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Corporate Dreams
Big Business in American Democracy from the Great Depression to the Great Recession
Hoopes, James
Rutgers University Press, 2011

Public trust in corporations plummeted in the wake of the 2008 financial crisis, when “Lehman Brothers” and “General Motors” became dirty words for many Americans. In Corporate Dreams, James Hoopes argues that Americans still place too much faith in corporations and, especially, in the idea of “values-based leadership” favored by most CEOs. The danger of corporations, he suggests, lies not just in their economic power, but also in how their confused and undemocratic values are infecting Americans’ visions of good governance. 

Corporate Dreams proposes that Americans need to radically rethink their relationships with big business and the government. Rather than buying into the corporate notion of “values-based leadership,” we should view corporate leaders with the same healthy suspicion that our democratic political tradition teaches us to view our political leaders. Unfortunately, the trend is moving the other way. Corporate notions of leadership are invading our democratic political culture when it should be the reverse.

To diagnose the cause and find a cure for our toxic attachment to corporate models of leadership, Hoopes goes back to the root of the problem, offering a comprehensive history of corporate culture inAmerica, from the Great Depression to today’s Great Recession. Combining a historian’s careful eye with an insider’s perspective on the business world, this provocative volume tracks changes in government economic policy, changes in public attitudes toward big business, and changes in how corporate executives view themselves.

Whether examining the rise of Leadership Development programs or recounting JFK’s Pyrrhic victory over U.S. Steel, Hoopes tells a compelling story of how America lost its way, ceding authority to the policies and values of corporate culture. But he also shows us how it’s not too late to return to our democratic ideals—and that it’s not too late to restore the American dream.

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Corporations and American Democracy
Naomi R. Lamoreaux
Harvard University Press, 2017

Recent U.S. Supreme Court decisions in Citizens United and other high-profile cases have sparked passionate disagreement about the proper role of corporations in American democracy. Partisans on both sides have made bold claims, often with little basis in historical facts. Bringing together leading scholars of history, law, and political science, Corporations and American Democracy provides the historical and intellectual grounding necessary to put today’s corporate policy debates in proper context.

From the nation’s founding to the present, Americans have regarded corporations with ambivalence—embracing their potential to revolutionize economic life and yet remaining wary of their capacity to undermine democratic institutions. Although corporations were originally created to give businesses and other associations special legal rights and privileges, historically they were denied many of the constitutional protections afforded flesh-and-blood citizens.

This comprehensive volume covers a range of topics, including the origins of corporations in English and American law, the historical shift from special charters to general incorporation, the increased variety of corporations that this shift made possible, and the roots of modern corporate regulation in the Progressive Era and New Deal. It also covers the evolution of judicial views of corporate rights, particularly since corporations have become the form of choice for an increasing variety of nonbusiness organizations, including political advocacy groups. Ironically, in today’s global economy the decline of large, vertically integrated corporations—the type of corporation that past reform movements fought so hard to regulate—poses some of the newest challenges to effective government oversight of the economy.

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The Crisis of Capitalist Democracy
Richard A. Posner
Harvard University Press, 2010

Following his timely and well-received A Failure of Capitalism, Richard Posner steps back to take a longer view of the continuing crisis of democratic capitalism as the American and world economies crawl gradually back from the depths to which they had fallen in the autumn of 2008 and the winter of 2009.

By means of a lucid narrative of the crisis and a series of analytical chapters pinpointing critical issues of economic collapse and gradual recovery, Posner helps non-technical readers understand business-cycle and financial economics, and financial and governmental institutions, practices, and transactions, while maintaining a neutrality impossible for persons professionally committed to one theory or another. He calls for fresh thinking about the business cycle that would build on the original ideas of Keynes. Central to these ideas is that of uncertainty as opposed to risk. Risk can be quantified and measured. Uncertainty cannot, and in this lies the inherent instability of a capitalist economy.

As we emerge from the financial earthquake, a deficit aftershock rumbles. It is in reference to that potential aftershock, as well as to the government’s stumbling efforts at financial regulatory reform, that Posner raises the question of the adequacy of our democratic institutions to the economic challenges heightened by the greatest economic crisis since the Great Depression. The crisis and the government’s energetic response to it have enormously increased the national debt at the same time that structural defects in the American political system may make it impossible to pay down the debt by any means other than inflation or devaluation.

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The Crisis of Neoliberalism
Gérard Duménil and Dominique Lévy
Harvard University Press, 2013
This book examines “the great contraction” of 2007–2010 within the context of the neoliberal globalization that began in the early 1980s. This new phase of capitalism greatly enriched the top 5 percent of Americans, including capitalists and financial managers, but at a significant cost to the country as a whole. Declining domestic investment in manufacturing, unsustainable household debt, rising dependence on imports and financing, and the growth of a fragile and unwieldy global financial structure threaten the strength of the dollar. Unless these trends are reversed, the authors predict, the U.S. economy will face sharp decline.Summarizing a large amount of troubling data, the authors show that manufacturing has declined from 40 percent of GDP to under 10 percent in thirty years. Since consumption drives the American economy and since manufactured goods comprise the largest share of consumer purchases, clearly we will not be able to sustain the accumulating trade deficits.Rather than blame individuals, such as Greenspan or Bernanke, the authors focus on larger forces. Repairing the breach in our economy will require limits on free trade and the free international movement of capital; policies aimed at improving education, research, and infrastructure; reindustrialization; and the taxation of higher incomes.
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Economic Analysis and Infrastructure Investment
Edited by Edward L. Glaeser and James M. Poterba
University of Chicago Press, 2021
Policy makers often call for increased spending on infrastructure, which can encompass a broad range of investments, from roads and bridges to digital networks that will expand access to high-speed broadband. Some point to the near-term macroeconomic benefits, such as job creation, associated with infrastructure spending; others point to the long-term effects of such spending on productivity and economic growth. 

Economic Analysis and Infrastructure Investment explores the links between infrastructure investment and economic outcomes, analyzing key economic issues in the funding and management of infrastructure projects. It includes new research on the short-run stimulus effects of infrastructure spending, develops new estimates of the stock of US infrastructure capital, and explores incentive aspects of public-private partnerships with particular attention to their allocation of risk. The volume provides a reference for researchers seeking to study infrastructure issues and for policymakers tasked with determining the appropriate level and allocation of infrastructure spending.
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Economics of Means-Tested Transfer Programs in the United States, Volume I
Edited by Robert A. Moffitt
University of Chicago Press, 2016
Few government programs in the United States are as controversial as those designed to help the poor. From tax credits to medical assistance, the size and structure of the American safety net is an issue of constant debate.

These two volumes update the earlier Means-Tested Transfer Programs in the United States with a discussion of the many changes in means-tested government programs and the results of new research over the past decade. While some programs that experienced falling outlays in the years prior to the previous volume have remained at low levels of expenditure, many others have grown, including Medicaid, the Earned Income Tax Credit, the Supplemental Nutrition Assistance Program, and subsidized housing programs. For each program, the contributors describe its origins and goals, summarize its history and current rules, and discuss recipients’ characteristics and the types of benefits they receive. 

This is an invaluable reference for researchers and policy makers that features detailed analyses of many of the most important transfer programs in the United States.
 
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front cover of Economics of Means-Tested Transfer Programs in the United States, Volume II
Economics of Means-Tested Transfer Programs in the United States, Volume II
Edited by Robert A. Moffitt
University of Chicago Press, 2016
Few government programs in the United States are as controversial as those designed to help the poor. From tax credits to medical assistance, the size and structure of the American safety net is an issue of constant debate.

These two volumes update the earlier Means-Tested Transfer Programs in the United States with a discussion of the many changes in means-tested government programs and the results of new research over the past decade. While some programs that experienced falling outlays in the years prior to the previous volume have remained at low levels of expenditure, many others have grown, including Medicaid, the Earned Income Tax Credit, the Supplemental Nutrition Assistance Program, and subsidized housing programs. For each program, the contributors describe its origins and goals, summarize its history and current rules, and discuss recipients’ characteristics and the types of benefits they receive. 

This is an invaluable reference for researchers and policy makers that features detailed analyses of many of the most important transfer programs in the United States.
 
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Economy and the Future
A Crisis of Faith
Jean-Pierre Dupuy
Michigan State University Press, 2014
A monster stalks the earth—a sluggish, craven, dumb beast that takes fright at the slightest noise and starts at the sight of its own shadow. This monster is the market. The shadow it fears is cast by a light that comes from the future: the Keynesian crisis of expectations. It is this same light that causes the world’s leaders to tremble before the beast. They tremble, Jean-Pierre Dupuy says, because they have lost faith in the future. What Dupuy calls Economy has degenerated today into a mad spectacle of unrestrained consumption and speculation. But in its positive form—a truly political economy in which politics, not economics, is predominant—Economy creates not only a sense of trust and confidence but also a belief in the open-endedness of the future without which capitalism cannot function. In this devastating and counterintuitive indictment of the hegemonic pretensions of neoclassical economic theory, Dupuy argues that the immutable and eternal decision of God has been replaced with the unpredictable and capricious judgment of the crowd. The future of mankind will therefore depend on whether it can see through the blindness of orthodox economic thinking.
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The Effects of Taxation on Capital Accumulation
Edited by Martin Feldstein
University of Chicago Press, 1987
Research on capital formation has long been a major focus of studies sponsored by the National Bureau of Economic Research because of the crucial role of capital accumulation in the process of economic growth. The papers in this volume examine the influence of taxes on capital formation, with specific focus on the determinants of saving and the process of investment in plant and equipment.
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The Emergence of China
Opportunities and Challenges for Latin America and the Caribbean
Robert Devlin
Harvard University Press

China is emerging as a truly global economic and political power. China’s impact on Latin America and the Caribbean region is mixed, however—fostering a trade market for some countries, but creating competition for others.

This pioneering volume, produced by the Inter-American Development Bank’s Integration and Regional Programs Department and Research Department, provides a comprehensive overview of China’s economic policy and performance over recent decades and contrasts them with the Latin American experience. What are the underlying factors behind China’s competitive edge? What are the strategic implications of China’s rise for growth and development in Latin America? These questions open new avenues for thinking about revitalizing development strategies in Latin America in the face of China’s successful development and reduction of poverty. This insightful report is a must-read for analysts, policymakers, and development practitioners, not only in Latin America and the Caribbean, but wherever China’s presence is being felt.

The Emergence of China is a copublication of the David Rockefeller Center for Latin American Studies and the Inter-American Development Bank.

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Enduring Reform
Progressive Activism and Private Sector Responses in Latin America's Democracies
Jeffrey W. Rubin
University of Pittsburgh Press, 2015
Over the last twenty years, business responses to progressive reform in Latin America have shifted dramatically.  Until the 1990s, progressive movements in Latin America suffered violent repression sanctioned by the private sector and other socio-political elites.  The powerful case studies in this volume show how business responses to reform have become more open–ended as Latin America’s democracies have deepened, with repression tempered by the economic uncertainties of globalization, the political and legal constraints of democracy, and shifting cultural understandings of poverty and race.

Enduring Reform presents five case studies from Mexico, Brazil, and Argentina in which marginalized groups have successfully forged new cultural and economic spaces and won greater autonomy and political voice.  Bringing together NGO’s, local institutions, social movements, and governments, these initiatives have developed new mechanisms to work ‘within the system,’ while also challenging the system’s logic and constraints.

 Through firsthand interviews, the contributors capture local businesspeople’s understandings of these progressive initiatives and record how they grapple with changes they may not always welcome, but must endure. Among their criteria, the contributors evaluate the degree to which businesspeople recognize and engage with reform movements and how they frame electoral counterproposals to reformist demands. The results show an uneven response to reform, dependent on cultural as much or more than economic factors, as businesses move to decipher, modify, collaborate with, outmaneuver, or limit progressive innovations.

From the rise of worker-owned factories in Buenos Aires, to the collective marketing initiatives of impoverished Mayans in San Cristóbal de las Casas, the success of democracy in Latin America depends on powerful and cooperative social actions and actors, including the private sector. As the cases in Enduring Reform show, the democratic context of Latin America today presses businesspeople to endure, accept, and at times promote progressive change in unprecedented ways, even as they act to limit and constrain it.
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Failure by Design
The California Energy Crisis and the Limits of Market Planning
Georg Rilinger
University of Chicago Press
A new framework for studying markets as the product of organizational planning and understanding the practical limits of market design.
 
The Western Energy Crisis was one of the great financial disasters of the past century. The crisis began in April 2000, when price spikes started to rattle California’s electricity markets. These new markets, designed to introduce competition and, ideally, drive down prices, created new opportunities for private companies. Within a year, however, California’s three biggest utilities were on the brink of bankruptcy. Competing for energy at public auctions, providers were unable to afford the now wildly expensive energy their customers needed. In sheer desperation, California’s grid operator instituted rolling blackouts to accommodate the scarcity. Traffic lights, refrigerators, and ATMs stopped working. It was a perfect scandal—especially when it turned out that the energy sellers had manipulated the market to drive up the prices and then profit from the resulting disaster. Who was at fault?
 
Decades later, some blame economic fundamentals and ignorant politicians, while others accuse the energy sellers who raided the markets. In Failure by Design, sociologist Georg Rilinger offers a different explanation that focuses on the practical challenges of market design. The unique physical attributes of electricity made it exceedingly challenging to introduce markets into the coordination of the electricity system, so market designers were brought in to construct the infrastructures that coordinate how market participants interact. An exercise in social engineering, these infrastructures were going to guide market actors toward behavior that would produce optimal market results and facilitate grid management. Yet, though these experts spent their days worrying about incentive misalignment and market manipulation, they unintentionally created a system riddled with opportunities for destructive behavior. How could some of the world’s foremost authorities create such a flawed system? Rilinger first identifies the structural features that enabled destructive behavior and then shows how the political, organizational, and cognitive conditions of design work prompted these mistakes. Rilinger’s analysis not only illuminates the California energy crisis but develops a broader theoretical framework to think about markets as the products of organizational planning and the limits of social engineering, contributing broadly to sociological and economic thinking about the nature of markets.
 
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A Failure of Capitalism
The Crisis of ’08 and the Descent into Depression
Richard A. Posner
Harvard University Press, 2009

The financial and economic crisis that began in 2008 is the most alarming of our lifetime because of the warp-speed at which it is occurring. How could it have happened, especially after all that we’ve learned from the Great Depression? Why wasn’t it anticipated so that remedial steps could be taken to avoid or mitigate it? What can be done to reverse a slide into a full-blown depression? Why have the responses to date of the government and the economics profession been so lackluster? Richard Posner presents a concise and non-technical examination of this mother of all financial disasters and of the, as yet, stumbling efforts to cope with it. No previous acquaintance on the part of the reader with macroeconomics or the theory of finance is presupposed. This is a book for intelligent generalists that will interest specialists as well.

Among the facts and causes Posner identifies are: excess savings flowing in from Asia and the reckless lowering of interest rates by the Federal Reserve Board; the relation between executive compensation, short-term profit goals, and risky lending; the housing bubble fuelled by low interest rates, aggressive mortgage marketing, and loose regulations; the low savings rate of American people; and the highly leveraged balance sheets of large financial institutions.

Posner analyzes the two basic remedial approaches to the crisis, which correspond to the two theories of the cause of the Great Depression: the monetarist—that the Federal Reserve Board allowed the money supply to shrink, thus failing to prevent a disastrous deflation—and the Keynesian—that the depression was the product of a credit binge in the 1920s, a stock-market crash, and the ensuing downward spiral in economic activity. Posner concludes that the pendulum swung too far and that our financial markets need to be more heavily regulated.

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Federalism and Social Policy
Patterns of Redistribution in 11 Democracies
Edited by Scott L. Greer and Heather Elliott
University of Michigan Press, 2019
Federalism and Social Policy focuses on the crucial question: Is a strong and egalitarian welfare state compatible with federalism? In this carefully curated collection, Scott L. Greer, Heather Elliott, and the contributors explore the relationship between decentralization and the welfare state to determine whether or not decentralization has negative consequences for welfare. The contributors examine a variety of federal countries, including Spain, Canada, and the United Kingdom, asking four key questions related to decentralization: (1) Are there regional welfare states (such as Scotland, Minnesota, etc.)? (2) How much variation is there in the structures of federal welfare states? (3) Is federalism bad for welfare? (4) Does austerity recentralize or decentralize welfare states? By focusing on money and policy instead of law and constitutional politics, the volume shows that federalism shapes regional governments and policies even when decentralization exists.
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Fighting Financial Crises
Learning from the Past
Gary B. Gorton and Ellis W. Tallman
University of Chicago Press, 2018
If you’ve got money in the bank, chances are you’ve never seriously worried about not being able to withdraw it. But there was a time in the United States, an era that ended just over a hundred years ago, when bank customers had to pay close attention to the solvency of the banking system, knowing they might have to rush to retrieve their savings before the bank collapsed. During the National Banking Era (1863–1913), before the establishment of the Federal Reserve, widespread banking panics were indeed rather common.

Yet these pre-Fed banking panics, as Gary B. Gorton and Ellis W. Tallman show, bear striking similarities to our recent financial crisis. Fighting Financial Crises thus turns to the past to better understand our uncertain present, investigating how panics during the National Banking Era played out and how they were eventually quelled and prevented. The authors then consider the Fed’s and the SEC’s reactions to the recent crisis, building an informative new perspective on how the modern economy works.
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Foxconned
Imaginary Jobs, Bulldozed Homes, and the Sacking of Local Government
Lawrence Tabak
University of Chicago Press, 2021
Powerful and resonant, Foxconned is both the definitive autopsy of the Foxconn fiasco and a dire warning to communities and states nationwide.

When Wisconsin governor Scott Walker stood shoulder to shoulder with President Trump and Speaker of the House Paul Ryan at the White House in July 2017, they painted a glorious picture of his state’s future. Foxconn, the enormous China-based electronics firm, was promising to bring TV manufacturing back to the United States with a $10 billion investment and 13,000 well-paying jobs. They actually were making America great again, they crowed.
 
Two years later, the project was in shambles. Ten thousand construction workers were supposed to have been building what Trump had promised would be “the eighth wonder of the world.” Instead, land had been seized, homes had been destroyed, and hundreds of millions of municipal dollars had been committed for just a few hundred jobs—nowhere near enough for Foxconn to earn the incentives Walker had shoveled at them. In Foxconned, journalist Lawrence Tabak details the full story of this utter collapse, which was disturbingly inevitable.
 
As Tabak shows, everything about Foxconn was a disaster. But worse, he reveals how the economic incentive infrastructure across the country is broken, leading to waste, cronyism, and the steady transfer of tax revenue to corporations. Tabak details every kind of financial chicanery, from eminent domain abuse to good old-fashioned looting—all to benefit a coterie of consultants, politicians, and contractors. With compassion and care, he also reports the distressing stories of the many individuals whose lives were upended by Foxconn.
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Freedom and the Economic System
F. A. Hayek
University of Chicago Press, 1939

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A General Equilibrium Model for Tax Policy Evaluation
Charles L. Ballard, Don Fullerton, John B. Shoven, and John Whalley
University of Chicago Press, 1985

This book reports the authors' research on one of the most sophisticated general equilibrium models designed for tax policy analysis. Significantly disaggregated and incorporating the complete array of federal, state, and local taxes, the model represents the U.S. economy and tax system in a large computer package. The authors consider modifications of the tax system, including those being raised in current policy debates, such as consumption-based taxes and integration of the corporate and personal income tax systems. A counterfactual economy associated with each of these alternatives is generated, and the possible outcomes are compared.

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Good Company
Economic Policy after Shareholder Primacy
Lenore Palladino
University of Chicago Press

On the faulty intellectual origins of shareholder primacy—and how policy can win back what’s been lost.

In an era of shareholder primacy, share price is king. Businesses operate with short-term goals to deliver profits to shareholders, enjoying stability (and bonuses) in the process. While the public bemoans the doctrine for its insularity and wealth-consolidating effects, its influence over corporate governance persists. Good Company offers an exacting argument for why shareholder primacy was never the right model to follow for truly understanding how corporations operate.

Lenore Palladino shows that corporations draw power from public charters—agreements that allow corporations to enjoy all manner of operational benefits. In return, companies are meant to innovate for the betterment of the societies that support them. However, that debt—increasingly wielded for stock buybacks and shareholder bonuses—is not being repaid. Palladino theorizes a modern corporation that plays its intended role while delivering social and economic good in the process and offers tangible policy solutions to make this a reality. Good Company is both an expert introduction to the political economy of the firm—as it was, as it is, as it can be—and a calibrating examination of how public policy can shape companies, and societies, for the better.

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Governing Trade Unions in Sweden
Leif Lewin
Harvard University Press, 1980

Because the world has long seen Sweden as a pioneer of democratic socialism, the success or failure of social experiments there has had momentous impact on the development of similar programs elsewhere. Now, in this penetrating inquiry undertaken by one of Sweden's leading political scientists, the problems and practices of Swedish trade unions are fully revealed.

Leif Lewin is interested in finding answers to several central questions: How “democratic” are Sweden's unions? How are they governed? How have they avoided the institutional inequities that plague some American unions? What sacrifices have Swedish unions had to make in order to solve their problems?

Lewin has gone directly to the people concerned, receiving from some 3,000 union members and leaders the information that forms the basis of his study. But his book is more than an empirical analysis of trade union democracy. It is also a strikingly successful example for all social scientists who have struggled to apply a hypothetical model of “democracy” to the ambiguous, often turbulent world around them. Above all, Lewin shows how the democratic ideal of individual intellectual and moral enrichment can be approached through participation in collective decision making. Thoughtful and balanced, his book addresses many of the problems that are just now being faced by social planners, economists, and union organizers everywhere.

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Government and the American Economy
A New History
Price V. Fishback et al.
University of Chicago Press, 2007

The American economy has provided a level of well-being that has consistently ranked at or near the top of the international ladder. A key source of this success has been widespread participation in political and economic processes. In The Government and the American Economy, leading economic historians chronicle the significance of America’s open-access society and the roles played by government in its unrivaled success story.

America’s democratic experiment, the authors show, allowed individuals and interest groups to shape the structure and policies of government, which, in turn, have fostered economic success and innovation by emphasizing private property rights, the rule of law, and protections of individual freedom. In response to new demands for infrastructure, America’s federal structure hastened development by promoting the primacy of states, cities, and national governments. More recently, the economic reach of American government expanded dramatically as the populace accepted stronger limits on its economic freedoms in exchange for the increased security provided by regulation, an expanded welfare state, and a stronger national defense.

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Government by Contract
Outsourcing and American Democracy
Jody Freeman
Harvard University Press, 2009

The dramatic growth of government over the course of the twentieth century since the New Deal prompts concern among libertarians and conservatives and also among those who worry about government’s costs, efficiency, and quality of service. These concerns, combined with rising confidence in private markets, motivate the widespread shift of federal and state government work to private organizations. This shift typically alters only who performs the work, not who pays or is ultimately responsible for it. “Government by contract” now includes military intelligence, environmental monitoring, prison management, and interrogation of terrorism suspects.

Outsourcing government work raises questions of accountability. What role should costs, quality, and democratic oversight play in contracting out government work? What tools do citizens and consumers need to evaluate the effectiveness of government contracts? How can the work be structured for optimal performance as well as compliance with public values?

Government by Contract explains the phenomenon and scope of government outsourcing and sets an agenda for future research attentive to workforce capacities as well as legal, economic, and political concerns.

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The Grabbing Hand
Government Pathologies and Their Cures
Andrei Shleifer and Robert W. Vishny
Harvard University Press, 1998

In many countries, public sector institutions impose heavy burdens on economic life: heavy and arbitrary taxes retard investment, regulations enrich corrupt bureaucrats, state firms consume national wealth, and the most talented people turn to rent-seeking rather than productive activities. As a consequence of such predatory policies--described in this book as the grabbing hand of the state--entrepreneurship lingers and economies stagnate.

The authors of this collection of essays describe many of these pathologies of a grabbing hand government, and examine their consequences for growth. The essays share a common viewpoint that political control of economic life is central to the many government failures that we observe. Fortunately, a correct diagnosis suggests the cures, including the best strategies of fighting corruption, privatization of state firms, and institutional building in the former socialist economies. Depoliticization of economic life emerges as the crucial theme of the appropriate reforms. The book describes the experiences with the grabbing hand government and its reform in medieval Europe, developing countries, transition economies, as well as today's United States.

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The Great Reversal
How America Gave Up on Free Markets
Thomas Philippon
Harvard University Press, 2019

A Financial Times Book of the Year
A ProMarket Book of the Year


“Superbly argued and important…Donald Trump is in so many ways a product of the defective capitalism described in The Great Reversal. What the U.S. needs, instead, is another Teddy Roosevelt and his energetic trust-busting. Is that still imaginable? All believers in the virtues of competitive capitalism must hope so.”
—Martin Wolf, Financial Times

“In one industry after another…a few companies have grown so large that they have the power to keep prices high and wages low. It’s great for those corporations—and bad for almost everyone else.”
—David Leonhardt, New York Times

“Argues that the United States has much to gain by reforming how domestic markets work but also much to regain—a vitality that has been lost since the Reagan years…His analysis points to one way of making America great again: restoring our free-market competitiveness.”
—Arthur Herman, Wall Street Journal

Why are cell-phone plans so much more expensive in the United States than in Europe? It seems a simple question, but the search for an answer took one of the world’s leading economists on an unexpected journey through some of the most hotly debated issues in his field. He reached a surprising conclusion: American markets, once a model for the world, are giving up on healthy competition.

In the age of Silicon Valley start-ups and millennial millionaires, he hardly expected this. But the data from his cutting-edge research proved undeniable. In this compelling tale of economic detective work, we follow Thomas Philippon as he works out the facts and consequences of industry concentration, shows how lobbying and campaign contributions have defanged antitrust regulators, and considers what all this means. Philippon argues that many key problems of the American economy are due not to the flaws of capitalism or globalization but to the concentration of corporate power. By lobbying against competition, the biggest firms drive profits higher while depressing wages and limiting opportunities for investment, innovation, and growth. For the sake of ordinary Americans, he concludes, government needs to get back to what it once did best: keeping the playing field level for competition. It’s time to make American markets great—and free—again.

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A Hercules in the Cradle
War, Money, and the American State, 1783–1867
Max M. Edling
University of Chicago Press, 2014
Explores the origin and evolution of American public finance and shows how the nation’s rise to great-power status in the nineteenth century rested on its ability to go into debt.

Two and a half centuries after the American Revolution the United States stands as one of the greatest powers on earth and the undoubted leader of the western hemisphere. This stupendous evolution was far from a foregone conclusion at independence. The conquest of the North American continent required violence, suffering, and bloodshed. It also required the creation of a national government strong enough to go to war against, and acquire territory from, its North American rivals.

In A Hercules in the Cradle, Max M. Edling argues that the federal government’s abilities to tax and borrow money, developed in the early years of the republic, were critical to the young nation’s ability to wage war and expand its territory. He traces the growth of this capacity from the time of the founding to the aftermath of the Civil War, including the funding of the War of 1812 and the Mexican War. Edling maintains that the Founding Fathers clearly understood the connection between public finance and power: a well-managed public debt was a key part of every modern state. Creating a debt would always be a delicate and contentious matter in the American context, however, and statesmen of all persuasions tried to pay down the national debt in times of peace. 
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A History of the Federal Reserve, Volume 1
1913-1951
Allan H. Meltzer
University of Chicago Press, 2002
Allan H. Meltzer's monumental history of the Federal Reserve System tells the story of one of America's most influential but least understood public institutions. This first volume covers the period from the Federal Reserve's founding in 1913 through the Treasury-Federal Reserve Accord of 1951, which marked the beginning of a larger and greatly changed institution.

To understand why the Federal Reserve acted as it did at key points in its history, Meltzer draws on meeting minutes, correspondence, and other internal documents (many made public only during the 1970s) to trace the reasoning behind its policy decisions. He explains, for instance, why the Federal Reserve remained passive throughout most of the economic decline that led to the Great Depression, and how the Board's actions helped to produce the deep recession of 1937 and 1938. He also highlights the impact on the institution of individuals such as Benjamin Strong, governor of the Federal Reserve Bank of New York in the 1920s, who played a key role in the adoption of a more active monetary policy by the Federal Reserve. Meltzer also examines the influence the Federal Reserve has had on international affairs, from attempts to build a new international financial system in the 1920s to the Bretton Woods Agreement of 1944 that established the International Monetary Fund and the World Bank, and the failure of the London Economic Conference of 1933.

Written by one of the world's leading economists, this magisterial biography of the Federal Reserve and the people who helped shape it will interest economists, central bankers, historians, political scientists, policymakers, and anyone seeking a deep understanding of the institution that controls America's purse strings.

"It was 'an unprecedented orgy of extravagance, a mania for speculation, overextended business in nearly all lines and in every section of the country.' An Alan Greenspan rumination about the irrational exuberance of the late 1990s? Try the 1920 annual report of the board of governors of the Federal Reserve. . . . To understand why the Fed acted as it did—at these critical moments and many others—would require years of study, poring over letters, the minutes of meetings and internal Fed documents. Such a task would naturally deter most scholars of economic history but not, thank goodness, Allan Meltzer."—Wall Street Journal

"A seminal work that anyone interested in the inner workings of the U. S. central bank should read. A work that scholars will mine for years to come."—John M. Berry, Washington Post

"An exceptionally clear story about why, as the ideas that actually informed policy evolved, things sometimes went well and sometimes went badly. . . . One can only hope that we do not have to wait too long for the second installment."—David Laidler, Journal of Economic Literature

"A thorough narrative history of a high order. Meltzer's analysis is persuasive and acute. His work will stand for a generation as the benchmark history of the world's most powerful economic institution. It is an impressive, even awe-inspiring achievement."—Sir Howard Davies, Times Higher Education Supplement

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Industrialization in Late-Developing ASEAN Countries
Cambodia, Laos, Myanmar and Vietnam
Naoko Amakawa
National University of Singapore Press, 2010
Late industrializing countries are able to pick strategies for economic development based on the experiences of countries that preceded them. Cambodia, Laos, Myanmar and Vietnam (the CLMV countries) were closed off from the international community for many years, and they began to embrace a market economy at around the same time. Each bypassed the import-substitution strategy adopted by other Southeast Asian countries and began industrialization efforts with export growth funded by Foreign Direct Investment.



The outcomes differed significantly owing to geographical location, government policies, and internal economic conditions. Industrialization in Late-Developing ASEAN Countries explores these differences through case studies based on an extended research program conducted by the Institute of Developing Economies in Tokyo, which offered insights into models of economic growth, and into the trajectories followed by the four countries examined.
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Inflation, Tax Rules, and Capital Formation
Martin Feldstein
University of Chicago Press, 1983

Inflation, Tax Rules, and Capital Formation brings together fourteen papers that show the importance of the interaction between tax rules and monetary policy. Based on theoretical and empirical research, these papers emphasize the importance of including explicit specifications of the tax system in such study.

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Innovation Policy and the Economy 2015
Volume 16
Edited by William R. Kerr, Josh Lerner, and Scott Stern
University of Chicago Press Journals, 2016
The papers in the sixteenth volume of the National Bureau of Economic Research’s Innovation Policy and the Economy offer insights into the changing landscape of innovation by highlighting recent developments in the financing of innovation and entrepreneurship and in the economics of innovation and intellectual property. The first chapter, by Ramana Nanda and Matthew Rhodes-Kropf, explores the process of experimentation in the context of financing of technology start-ups by venture capitalists. The second, by Yael Hochberg, also analyzes the role of entrepreneurial experimentation by systematically examining the rise of start-up accelerators. The third chapter, by Heidi Williams, studies the relationship between the strength of intellectual property rights and innovation. The fourth paper, by Fiona Scott Morton and Carl Shapiro discusses recent changes to the patent system and whether they align the rewards from intellectual property with the marginal contributions made by innovators and other stakeholders. The final chapter, by Karim Lakhani and Kevin Boudreau, focuses on the potential use of field innovation experiments and contests to inform innovation policy and management. Together, these essays continue to highlight the importance of economic theory and empirical analysis in innovation policy research.
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Innovation Policy and the Economy, 2018
Volume 19
Edited by Josh Lerner and Scott Stern
University of Chicago Press Journals, 2019
This volume highlights the interaction between public policy and innovation. The first chapter documents the dramatic globalization of R&D and how this development has affected the efforts of  U.S. multinationals to operate on the global technology frontier. The next chapter synthesizes research on the impact of trade shocks on innovation and explains how these shocks’ effects depend on the firms, industries, and countries affected. The third chapter examines the Advanced Research Projects Agency (ARPA) model of research management—an approach to funding and managing high-risk R&D—and offers a method for diagnosing which research efforts are “ARPA-able.” Next is a study of the Orphan Drug Act and the key changes in the U.S. healthcare landscape and in drug discovery and development since its passage in 1983. The next two chapters focus on artificial intelligence (AI). One describes how AI diffuses through the economy and discusses implications for economic inequality, antitrust, and intellectual property. The other investigates issues surrounding firm competition and labor force participation, such as data portability and a Universal Basic Income, and evaluates ways to address these issues.
 
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front cover of Innovation Policy and the Economy, 2019
Innovation Policy and the Economy, 2019
Volume 20
Edited by Josh Lerner and Scott Stern
University of Chicago Press Journals, 2020
The chapters in this twentieth volume of Innovation Policy and the Economy present research on the interactions among public policy, the innovation process, and the economy. One explores changes in the ability of the U.S. to attract talented foreign workers and the role of sponsoring institutions in shaping immigration policy. Another explains how the division of innovative labor between research universities and corporate labs affected productivity growth and the transformation of knowledge into new products and processes. A third reviews different innovation policies and their performance in the pharmaceutical sector. Next is a chapter on the effects of competition policy on innovation, “creative destruction,” and economic growth. A fifth chapter studies how experimental policy design can be a cost-effective way to attain program goals. The last chapter examines geographic disparities in innovation, joblessness, and technological dynamism and studies how reallocation of grants and geographically targeted entrepreneurship policy could affect labor supply and welfare.
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Institutional Change, Discretion, and the Making of Modern Congress
An Economic Interpretation
Glenn R. Parker
University of Michigan Press, 1992
Controversial new interpretation of legislators' behavior
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Ivy and Industry
Business and the Making of the American University, 1880-1980
Christopher Newfield
Duke University Press, 2003
Emphasizing how profoundly the American research university has been shaped by business and the humanities alike, Ivy and Industry is a vital contribution to debates about the corporatization of higher education in the United States. Christopher Newfield traces major trends in the intellectual and institutional history of the research university from 1880 to 1980. He pays particular attention to the connections between the changing forms and demands of American business and the cultivation of a university-trained middle class. He contends that by imbuing its staff and students with seemingly opposed ideas—of self-development on the one hand and of an economic system existing prior to and inviolate of their own activity on the other—the university has created a deeply conflicted middle class.

Newfield views management as neither inherently good nor bad, but rather as a challenge to and tool for negotiating modern life. In Ivy and Industry he integrates business and managerial philosophies from Taylorism through Tom Peters’s “culture of excellence” with the speeches and writings of leading university administrators and federal and state education and science policies. He discusses the financial dependence on industry and government that was established in the university’s early years and the equal influence of liberal arts traditions on faculty and administrators. He describes the arrival of a managerial ethos on campus well before World War II, showing how managerial strategies shaped even fields seemingly isolated from commerce, like literary studies. Demonstrating that business and the humanities have each had a far stronger impact on higher education in the United States than is commonly thought, Ivy and Industry is the dramatic story of how universities have approached their dual mission of expanding the mind of the individual while stimulating economic growth.

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Law, Legislation and Liberty, Volume 1
Rules and Order
F. A. Hayek
University of Chicago Press, 1978
This volume represents the first section of F. A. Hayek's comprehensive three-part study of the relations between law and liberty. Rules and Order constructs the framework necessary for a critical analysis of prevailing theories of justice and of the conditions which a constitution securing personal liberty would have to satisfy.
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Law, Legislation and Liberty, Volume 2
The Mirage of Social Justice
F. A. Hayek
University of Chicago Press, 1977
F. A. Hayek made many valuable contributions to the field of economics as well as to the disciplines of philosophy and politics. This volume represents the second of Hayek's comprehensive three-part study of the relations between law and liberty. Here, Hayek expounds his conviction that he continued unexamined pursuit of "social justice" will contribute to the erosion of personal liberties and encourage the advent of totalitarianism.
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Law, Legislation and Liberty, Volume 3
The Political Order of a Free People
F. A. Hayek
University of Chicago Press, 1979
Incisive, straightforward, and eloquent, this third and concluding volume of F. A. Hayek's comprehensive assessment of the basic political principles which order and sustain free societies contains the clearest and most uncompromising exposition of the political philosophy of one of the world's foremost economists.
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Managed Care and Monopoly Power
The Antitrust Challenge
Deborah Haas-Wilson
Harvard University Press, 2003

As millions of Americans are aware, health care costs continue to increase rapidly. Much of this increase is due to the development of new life-sustaining drugs and procedures, but part of it is due to the increased monopoly power of physicians, insurance companies, and hospitals, as the health care sector undergoes reorganization and consolidation. There are two tools to limit the growth of monopoly power: government regulation and antitrust policy. In this timely book, Deborah Haas-Wilson argues that enforcement of the antitrust laws is the tool of choice in most cases.

The antitrust laws, when wisely enforced, permit markets to work competitively and therefore efficiently. Competitive markets foster low prices and high quality. Applying antitrust tools wisely, however, is a tricky business, and Haas-Wilson carefully explains how it can be done. Focusing on the economic concepts necessary to the enforcement of the antitrust laws in health care markets, Haas-Wilson provides a useful roadmap for guiding the future of these markets.

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Measuring and Managing Federal Financial Risk
Edited by Deborah Lucas
University of Chicago Press, 2010
The U.S. government is the world’s largest financial institution, providing credit and assuming risk through diverse activities. But the potential cost and risk of these actions and obligations remain poorly understood and only partially measured. Government budgetary and financial accounting rules, which largely determine the information available to federal decision makers, have only just begun to address these issues. However, recently there has been a push to rethink how these programs are valued and accounted for, and some progress has been made in applying modern valuation methods—such as options pricing, risk-adjusted discount rates, and value at risk—to these types of obligations.

This book contains new research, both empirical and methodological, on the measurement and management of these costs and risks. The analyses encompass a broad spectrum of federal programs, including housing, catastrophe insurance, student loans, social security, and environmental liabilities. Collectively, the contributions gathered in Measuring and Managing Federal Financial Risk demonstrate that the logic of financial economics can be a useful tool for studying a range of federal activities.
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Michigan's Economic Future
A New Look
Charles Ballard
Michigan State University Press, 2010

This accessible, engaging text examines the impact of the trends that have shaped Michigan’s economy, and offers innovative solutions to the current economic crisis. Charles Ballard’s illuminating book explores the structure of Michigan’s economy, including its roots in agriculture, the rise and fall of the automotive industry, and the long-term decline of manufacturing. Ballard proposes that investing in education to create a highly skilled workforce can help Michigan’s people to compete in the rapidly evolving global economy. Discussing the state’s transportation infrastructure, environment, public expenditures, and tax system, Ballard describes how changes in attitudes, policies, and political institutions will help to promote economic recovery and growth.

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Money for Nothing
Politicians, Rent Extraction, and Political Extortion
Fred S. McChesney
Harvard University Press, 1997

Surveys reveal that a majority of Americans believe government is run for special interests, not public interest. The increased presence and power of lobbyists in Washington and the excesses of PAC and campaign contributions, in-kind benefits, and other favors would seem to indicate a government of weak public servants corrupted by big private-interest groups.

But as Fred McChesney shows, this perspective affords only a partial understanding of why private interests are paying, and what they are paying for. Consider, for example, Citicorp, the nation's largest banking company, whose registered lobbyists spend most of their time blocking legislation that could hurt any one of the company's credit-card, loan, or financial-service operations. What this scenario suggests, the author argues, is that payments to politicians are often made not for political favors, but to avoid political disfavor, that is, as part of a system of political extortion or "rent extraction."

The basic notion of rent extraction is simple: because the state can legally take wealth from its citizens, politicians can extort from private parties payments not to expropriate private wealth. In that sense, rent (that is, wealth) extraction is "money for nothing"--money paid in exchange for politicians' inaction. After constructing this model of wealth extraction, McChesney tests it with many examples, including several involving routine proposals of tax legislation, followed by withdrawal for a price. He also shows how the model applies more generally to regulation. Finally, he examines how binding contracts are written between private interests and politicians not to extract wealth.

This book, standing squarely at the intersection of law, political science, and economics, vividly illustrates the patterns of legal extortion underlying the current fabric of interest-group politics.

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Network Nation
Inventing American Telecommunications
Richard R. John
Harvard University Press, 2015

The telegraph and the telephone were the first electrical communications networks to become hallmarks of modernity. Yet they were not initially expected to achieve universal accessibility. In this pioneering history of their evolution, Richard R. John demonstrates how access to these networks was determined not only by technological imperatives and economic incentives but also by political decision making at the federal, state, and municipal levels.

In the decades between the Civil War and the First World War, Western Union and the Bell System emerged as the dominant providers for the telegraph and telephone. Both operated networks that were products not only of technology and economics but also of a distinctive political economy. Western Union arose in an antimonopolistic political economy that glorified equal rights and vilified special privilege. The Bell System flourished in a progressive political economy that idealized public utility and disparaged unnecessary waste.

The popularization of the telegraph and the telephone was opposed by business lobbies that were intent on perpetuating specialty services. In fact, it wasn’t until 1900 that the civic ideal of mass access trumped the elitist ideal of exclusivity in shaping the commercialization of the telephone. The telegraph did not become widely accessible until 1910, sixty-five years after the first fee-for-service telegraph line opened in 1845.

Network Nation places the history of telecommunications within the broader context of American politics, business, and discourse. This engrossing and provocative book persuades us of the critical role of political economy in the development of new technologies and their implementation.

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One Belt One Road
Chinese Power Meets the World
Eyck Freymann
Harvard University Press, 2021

In 2013, Chinese leader Xi Jinping announced a campaign for national rejuvenation. The One Belt One Road initiative, or OBOR, has become the largest infrastructure program in history. Nearly every Chinese province, city, major business, bank, and university have been mobilized to serve it, spending hundreds of billions of dollars overseas building ports and railroads, laying fiber cables, and launching satellites. Using a trove of Chinese sources, author Eyck Freymann argues these infrastructure projects are a sideshow. OBOR is primarily a campaign to restore an ancient model in which foreign emissaries paid tribute to the Chinese emperor, offering gifts in exchange for political patronage. Xi sees himself as a sort of modern-day emperor, determined to restore China’s past greatness.

Many experts assume that Xi’s nakedly neo-imperial scheme couldn’t possibly work. Freymann shows how wrong they are. China isn’t preying on victims, Freymann argues. It’s attracting willing partners—including Western allies—from Latin America to Southeast Asia to the Persian Gulf. Even in countries where OBOR megaprojects fail, Freymann finds that political leaders still want closer ties with China.

Freymann tells the monumental story of Xi’s project on the global stage. Drawing on primary documents in five languages, interviews with senior officials, and on-the-ground case studies from Malaysia to Greece, Russia to Iran, Freymann pulls back the veil of propaganda about OBOR, giving readers a page-turning world tour of the burgeoning Chinese empire, a guide for understanding China’s motives and tactics, and clear recommendations for how the West can compete.

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Pennsylvania Politics and Policy
A Commonwealth Reader
J. Wesley Leckrone
Temple University Press, 2018

The activities of state governments have always been important in the American federal system. However, recent partisan gridlock in Washington, DC has placed states at the forefront of policymaking as the national government maintains the status quo. Pennsylvania Politics and Policy, Volume 1 is designed to showcase current issues of interest to Pennsylvanians. This reader contains updated chapters from recent issues of Commonwealth: A Journal of Pennsylvania Politics and Policy on education, health care, public finance, tax policy, environmental policy, alcohol policy and more. Each chapter is supplemented by forums with arguments in support of or opposed to contested elements of state policy, discussion questions, and suggestions for further reading. 

In addition, Pennsylvania Politics and Policy, Volume 1 includes a comprehensive guide to researching state government and policy online. It is designed as a text or supplement for college or advanced high school classes in American government, state and local politics, public policy, and public administration. 

Contributors include: David G. Argall, Tom Baldino, Michele Deegan, Michael Dimino, George Hale, Rachel L. Hampton , Paula Duda Holoviak Jon Hopcraft, Vera Krekanova, Maureen W. McClure, Barry G. Rabe, Marguerite Roza, Lanethea Mathews Shultz, Jennie Sweet-Cushman, Amanda Warco, and the editors.

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Pennsylvania Politics and Policy, Volume 2
A Commonwealth Reader
Edited by Michelle J. Atherton and J. Wesley Leckrone
Temple University Press, 2019

Designed to showcase current issues of interest, Pennsylvania Politics and Policy, Volume 2 isthe second reader consisting of updated chapters from recent issues of Commonwealth: A Journal of Pennsylvania Politics and Policy. The editors and contributors to this volume focus on government institutions, election laws, the judiciary, government finance and budgeting, the opioid crisis, childcare, property taxes, environmental policy, demographics, and more. Each chapter is supplemented by discussion questions, suggestions for further reading, and forums with arguments in support of or opposed to contested elements of state policy.

In addition, Pennsylvania Politics and Policy, Volume 2 includes a detailed guide to researching state government and policy online, as well as a comprehensive chapter on the structure of Pennsylvania government. It is designed as a text or supplement for college or advanced high school classes in American government, state and local politics, public policy, and public administration. 

Contributors include: John Arway, Jenna Becker Kane, Jeffrey Carroll, Bob Dick, Ashley Harden, Stefanie I. Kasparek, Vera Krekanova, Maureen W. McClure, John F. McDonald, Josh Shapiro, Marc Stier, Jennie Sweet-Cushman, James Vike, and the editors.

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The People's Money
Pensions, Debt, and Government Services
Edited by Michael A. Pagano
University of Illinois Press, 2019
American cities continue to experience profound fiscal crises. Falling revenues cannot keep pace with the increased costs of vital public services, infrastructure development and improvement, and adequately funded pensions. Chicago presents an especially vivid example of these issues, as the state of Illinois's rocky fiscal condition compounds the city's daunting budget challenges. In The People's Money, Michael A. Pagano curates a group of essays that emerged from discussions at the 2018 UIC Urban Forum. The contributors explore fundamental questions related to measuring the fiscal health of cities, including how cities can raise revenue, the accountability of today's officials for the future financial position of a city, the legal and practical obstacles to pension reform and a balanced budget, and whether political collaboration offers an alternative to the competition that often undermines regional governance.Contributors: Jered B. Carr, Rebecca Hendrick, Martin J. Luby, David Merriman, Michael A. Pagano, David Saustad, Casey Sebetto, Michael D. Siciliano, James E. Spiotto, Gary Strong, Shu Wang, and Yonghong Wu
[more]

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Politics and Economics in the Eighties
Edited by Alberto Alesina and Geoffrey Carliner
University of Chicago Press, 1991
Is the federal budget deficit a result of congressional deadlocks, gross miscalculation of economic trends, or a Republican strategy to tie the budgetary hands of future Democratic leadership? To what extend does the partisan split between Congress and the executive branch constrain the president's agenda? In this volume, political scientists and economists tackle these and many other contentious issues, offering a variety of analytical perspectives.
Certain to provoke controversy, this interdisciplinary volume brings together policy experts to provide a coherent analysis of the most important economic policy changes of the 1980s. Through a detailed examination of voting patterns, monetary and fiscal policies, welfare spending, tax reform, minimum wage legislation, the savings and loan collapse, and international trade policy, the authors explore how politics can influence the direction of economic policymaking.
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The Public Option
How to Expand Freedom, Increase Opportunity, and Promote Equality
Ganesh Sitaraman and Anne L. Alstott
Harvard University Press, 2019

A solution to inequalities wherever we look—in health care, secure retirement, education—is as close as the public library. Or the post office, community pool, or local elementary school. Public options—reasonably priced government-provided services that coexist with private options—are all around us, ready to increase opportunity, expand freedom, and reawaken civic engagement if we will only let them.

Whenever you go to your local public library, send mail via the post office, or visit Yosemite, you are taking advantage of a longstanding American tradition: the public option. Some of the most useful and beloved institutions in American life are public options—yet they are seldom celebrated as such. These government-supported opportunities coexist peaceably alongside private options, ensuring equal access and expanding opportunity for all.

Ganesh Sitaraman and Anne Alstott challenge decades of received wisdom about the proper role of government and consider the vast improvements that could come from the expansion of public options. Far from illustrating the impossibility of effective government services, as their critics claim, public options hold the potential to transform American civic life, offering a wealth of solutions to seemingly intractable problems, from housing shortages to the escalating cost of health care.

Imagine a low-cost, high-quality public option for child care. Or an extension of the excellent Thrift Savings Plan for federal employees to all Americans. Or every person having access to an account at the Federal Reserve Bank, with no fees and no minimums. From broadband internet to higher education, The Public Option reveals smart new ways to meet pressing public needs while spurring healthy competition. More effective than vouchers or tax credits, public options could offer us all fairer choices and greater security.

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The Quality of Government
Corruption, Social Trust, and Inequality in International Perspective
Bo Rothstein
University of Chicago Press, 2011
The relationship between government, virtue, and wealth has held a special fascination since Aristotle, and the importance of each frames policy debates today in both developed and developing countries. While it’s clear that low-quality government institutions have tremendous negative effects on the health and wealth of societies, the criteria for good governance remain far from clear.
 
In this pathbreaking book, leading political scientist Bo Rothstein provides a theoretical foundation for empirical analysis on the connection between the quality of government and important economic, political, and social outcomes. Focusing on the effects of government policies, he argues that unpredictable actions constitute a severe impediment to economic growth and development—and that a basic characteristic of quality government is impartiality in the exercise of power. This is borne out by cross-sectional analyses, experimental studies, and in-depth historical investigations. Timely and topical, The Quality of Government tackles such issues as political legitimacy, social capital, and corruption.
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Regulating a New Economy
Public Policy and Economic Change in America, 1900–1933
Morton Keller
Harvard University Press
Morton Keller, a leading scholar of twentieth-century American history, describes the complex interplay between rapid economic change and regulatory policy. In its portrait of the response of American politics and law to a changing economy, this book provides a fresh understanding of emerging public policy for a modern nation.
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Reinventing State Capitalism
Leviathan in Business, Brazil and Beyond
Aldo Musacchio and Sergio G. Lazzarini
Harvard University Press, 2014

The wave of liberalization that swept world markets in the 1980s and 90s altered the ways that governments manage their economies. Reinventing State Capitalism analyzes the rise of new species of state capitalism in which governments interact with private investors either as majority or minority shareholders in publicly-traded corporations or as financial backers of purely private firms (the so-called “national champions”). Focusing on a detailed quantitative assessment of Brazil’s economic performance from 1976 to 2009, Aldo Musacchio and Sergio Lazzarini examine how these models of state capitalism influence corporate investment and performance.

According to one model, the state acts as a majority investor, granting the state-owned enterprise (SOE) financial autonomy and allowing professional management. This form, the authors argue, has reduced many agency problems commonly faced by state ownership. According to another hybrid model, the state uses sovereign wealth funds, holding companies, and development banks to acquire a small share of equity ownership in a corporation, thereby potentially alleviating capital constraints and leveraging latent capabilities.

Both models have benefits and costs. Yet neither model has entirely eliminated the temptation of governments to intervene in the operation of natural resource industries and other large strategic enterprises. Nevertheless, the longstanding debate over whether private ownership is superior or inferior to state capitalism has become irrelevant, Musacchio and Lazzarini conclude. Private ownership is now mingled with state capital on a global scale.

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Rethinking the Financial Crisis
Alan S. Blinder
Russell Sage Foundation, 2013
Some economic events are so major and unsettling that they “change everything.” Such is the case with the financial crisis that started in the summer of 2007 and is still a drag on the world economy. Yet enough time has now elapsed for economists to consider questions that run deeper than the usual focus on the immediate causes and consequences of the crisis. How have these stunning events changed our thinking about the role of the financial system in the economy, about the costs and benefits of financial innovation, about the efficiency of financial markets, and about the role the government should play in regulating finance? In Rethinking the Financial Crisis, some of the nation’s most renowned economists share their assessments of particular aspects of the crisis and reconsider the way we think about the financial system and its role in the economy. In its wide-ranging inquiry into the financial crash, Rethinking the Financial Crisis marshals an impressive collection of rigorous and yet empirically-relevant research that, in some respects, upsets the conventional wisdom about the crisis and also opens up new areas for exploration. Two separate chapters–by Burton G. Malkiel and by Hersh Shefrin and Meir Statman – debate whether the facts of the financial crisis upend the efficient market hypothesis and require a more behavioral account of financial market performance. To build a better bridge between the study of finance and the “real” economy of production and employment, Simon Gilchrist and Egan Zakrasjek take an innovative measure of financial stress and embed it in a model of the U.S. economy to assess how disruptions in financial markets affect economic activity—and how the Federal Reserve might do monetary policy better. The volume also examines the crucial role of financial innovation in the evolution of the pre-crash financial system. Thomas Philippon documents the huge increase in the size of the financial services industry relative to real GDP, and also the increasing cost per financial transaction. He suggests that the finance industry of 1900 was just as able to produce loans, bonds, and stocks as its modern counterpart—and it did so more cheaply. Robert Jarrow looks in detail at some of the major types of exotic securities developed by financial engineers, such as collateralized debt obligations and credit-default swaps, reaching judgments on which make the real economy more efficient and which do not. The volume’s final section turns explicitly to regulatory matters. Robert Litan discusses the political economy of financial regulation before and after the crisis. He reviews the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which he considers an imperfect but useful response to a major breakdown in market and regulatory discipline. At a time when the financial sector continues to be a source of considerable controversy, Rethinking the Financial Crisis addresses important questions about the complex workings of American finance and shows how the study of economics needs to change to deepen our understanding of the indispensable but risky role that the financial system plays in modern economies.
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front cover of The Return to Keynes
The Return to Keynes
Bradley W. Bateman
Harvard University Press, 2010

Keynesian economics, which proposed that the government could use monetary and fiscal policy to help the economy avoid the extremes of recession and inflation, held sway for thirty years after World War II. However, it was discredited after the stagflation of the 1970s, which not only proved resistant to traditional Keynesian policies but was actually thought to be caused by them. By the 1990s, the anti-Keynesian counter-revolution seemed to reach its pinnacle with the award of several Nobel Prizes in economics to its architects at the University of Chicago.

However, with the collapse of the dot-com boom in 2000 and the attacks of 9/11 a year later, the nature of macroeconomic policy debate took a turn. The collapse prompted a major shift in macroeconomic policy, as the Bush administration and other governments around the world began to resort to Keynesian measures—both monetary and fiscal policies—to stabilize the economy. The Keynesian rebirth has been most dramatically illustrated during the past year when central banks have pumped billions of dollars of liquidity into the world’s financial system to address the crises of confidence, illiquidity, and insolvency that were triggered by the sub-prime lending crisis. The Return to Keynes puts Keynesian economics in a fresh perspective in order to assess this surprising new era in economic policy making.

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The Roaring Nineties
Can Full Employment Be Sustained?
Alan B. Krueger
Russell Sage Foundation, 2001
The positive social benefits of low unemployment are many—it helps to reduce poverty and crime and fosters more stable families and communities. Yet conventional wisdom—born of the stagflation of the 1970s—holds that sustained low unemployment rates run the risk of triggering inflation. The last five years of the 1990s—in which unemployment plummeted and inflation remained low—called this conventional wisdom into question. The Roaring Nineties provides a thorough review of the exceptional economic performance of the late 1990s and asks whether it was due to a lucky combination of economic circumstances or whether the new economy has somehow wrought a lasting change in the inflation-safe rate of unemployment. Led by distinguished economists Alan Krueger and Robert Solow, a roster of twenty-six respected economic experts analyzes the micro- and macroeconomic factors that led to the unexpected coupling of low unemployment and low inflation. The more macroeconomically oriented chapters clearly point to a reduction in the inflation-safe rate of unemployment. Laurence Ball and Robert Moffitt see the slow adjustment of workers' wage aspirations in the wake of rising productivity as a key factor in keeping inflation at bay. And Alan Blinder and Janet Yellen credit sound monetary policy by the Federal Reserve Board with making the best of fortunate circumstances, such as lower energy costs, a strong dollar, and a booming stock market. Other chapters in The Roaring Nineties examine how the interaction between macroeconomic and labor market conditions helped sustain high employment growth and low inflation. Giuseppe Bertola, Francine Blau, and Lawrence M. Kahn demonstrate how greater flexibility in the U.S. labor market generated more jobs in this country than in Europe, but at the expense of greater earnings inequality. David Ellwood examines the burgeoning shortage of skilled workers, and suggests policies—such as tax credits for businesses that provide on-the-job-training—to address the problem. And James Hines, Hilary Hoynes, and Alan Krueger elaborate the benefits of sustained low unemployment, including budget surpluses that can finance public infrastructure and social welfare benefits—a perspective often lost in the concern over higher inflation rates. While none of these analyses promise that the good times of the 1990s will last forever, The Roaring Nineties provides a unique analysis of recent economic history, demonstrating how the nation capitalized on a lucky confluence of economic factors, helping to create the longest peacetime boom in American history. Copublished with The Century Foundation
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The Role of Innovation and Entrepreneurship in Economic Growth
Edited by Michael J. Andrews, Aaron Chatterji, Josh Lerner, and Scott Stern
University of Chicago Press, 2022
This volume presents studies from experts in twelve industries, providing insights into the future role of innovation and entrepreneurship in driving economic growth across sectors.

We live in an era in which innovation and entrepreneurship seem ubiquitous, particularly in regions like Silicon Valley, Boston, and the Research Triangle Park. But many metrics of economic growth, such as productivity growth and business dynamism, have been at best modest in recent years. The resolution of this apparent paradox is dramatic heterogeneity across sectors, with some industries seeing robust innovation and entrepreneurship and others seeing stagnation. By construction, the impact of innovation and entrepreneurship on overall economic performance is the cumulative impact of their effects on individual sectors. Understanding the potential for growth in the aggregate economy depends, therefore, on understanding the sector-by-sector potential for growth. This insight motivates the twelve studies of different sectors that are presented in this volume. Each study identifies specific productivity improvements enabled by innovation and entrepreneurship, for example as a result of new production technologies, increased competition, or new organizational forms. These twelve studies, along with three synthetic chapters, provide new insights on the sectoral patterns and concentration of the contributions of innovation and entrepreneurship to economic growth. 
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RSF
The Russell Sage Foundation Journal of the Social Sciences: Administrative Burden and Inequality in Policy implementation
Pamela Herd
Russell Sage Foundation, 2023
Copy refers to RSF, Volume 9, issues 4 & 5

​Administrative burdens are the learning, compliance, and psychological costs that individuals incur during encounters with public services. While some burdens are created unintentionally, others are deliberately constructed as barriers to limit claims to programs and services. Often, burdens fall most heavily on marginalized groups, preventing them from resources they need. In this double issue of RSF public administration scholar Pamela Herd, economist Hilary Hoynes, political scientists Jamila Michener and Donald Moynihan, and an interdisciplinary group of contributors explore how administrative burdens shape inequality.
 
Issue 1 examines how administrative burdens impact Medicaid and health inequality, student loan repayment programs, and immigration to the U.S. Emily Rauscher and Ailish Burns find that combinations of reforms to reduce administrative burdens in the late 1980s increased Medicaid enrollment and improved infant health nearly as much as Medicaid expansion. Adam Goldstein and colleagues show that administrative burdens in enrolling in income-driven repayment student loan programs causes borrowers with lower socioeconomic status to be disproportionately excluded from these programs. Lilly Yu finds that dramatic changes to immigration law and policy during the Trump Administration led immigration lawyers to inadvertently exacerbate inequality among undocumented and vulnerable immigrants’ access to legal representation.
 
Issue 2 looks at the role of administrative burdens in experiences with child and family support programs, the child welfare system, disaster and housing relief programs, and housing support programs. Carolyn Barnes and colleagues find that mothers’ perceptions of the costs and benefits of participation in the Special Supplemental Nutrition Assistance Program for Women, Infants, and Children (WIC) vary over time and influence whether they choose to enroll or continue participating in the program. Ethan J. Raker and Tyler M. Woods find applications from poor communities of color for Federal Emergency Management Agency (FEMA) housing aid after Hurricanes Katrina and Rita were disproportionately denied or delayed due to burdensome program requirements and implementation. Stephanie Casey Pierce and Stephanie Moulton reveal that reforms to reduce administrative burden in foreclosure programs are associated with a significant increase in the rate of benefit receipt and decrease in the foreclosure rate. Frank Edwards and colleagues show child welfare system-involved parents must navigate considerable administrative burdens in order to retain custody of their children.
 
This volume of RSF sheds light on the origins, experiences, and consequences of administrative burdens.
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RSF
The Russell Sage Foundation Journal of the Social Sciences: Administrative Burden and Inequality in Policy implementation
Pamela Herd
Russell Sage Foundation, 2023
Copy refers to RSF, Volume 9, issues 4 & 5

​Administrative burdens are the learning, compliance, and psychological costs that individuals incur during encounters with public services. While some burdens are created unintentionally, others are deliberately constructed as barriers to limit claims to programs and services. Often, burdens fall most heavily on marginalized groups, preventing them from resources they need. In this double issue of RSF public administration scholar Pamela Herd, economist Hilary Hoynes, political scientists Jamila Michener and Donald Moynihan, and an interdisciplinary group of contributors explore how administrative burdens shape inequality.
 
Issue 1 examines how administrative burdens impact Medicaid and health inequality, student loan repayment programs, and immigration to the U.S. Emily Rauscher and Ailish Burns find that combinations of reforms to reduce administrative burdens in the late 1980s increased Medicaid enrollment and improved infant health nearly as much as Medicaid expansion. Adam Goldstein and colleagues show that administrative burdens in enrolling in income-driven repayment student loan programs causes borrowers with lower socioeconomic status to be disproportionately excluded from these programs. Lilly Yu finds that dramatic changes to immigration law and policy during the Trump Administration led immigration lawyers to inadvertently exacerbate inequality among undocumented and vulnerable immigrants’ access to legal representation.
 
Issue 2 looks at the role of administrative burdens in experiences with child and family support programs, the child welfare system, disaster and housing relief programs, and housing support programs. Carolyn Barnes and colleagues find that mothers’ perceptions of the costs and benefits of participation in the Special Supplemental Nutrition Assistance Program for Women, Infants, and Children (WIC) vary over time and influence whether they choose to enroll or continue participating in the program. Ethan J. Raker and Tyler M. Woods find applications from poor communities of color for Federal Emergency Management Agency (FEMA) housing aid after Hurricanes Katrina and Rita were disproportionately denied or delayed due to burdensome program requirements and implementation. Stephanie Casey Pierce and Stephanie Moulton reveal that reforms to reduce administrative burden in foreclosure programs are associated with a significant increase in the rate of benefit receipt and decrease in the foreclosure rate. Frank Edwards and colleagues show child welfare system-involved parents must navigate considerable administrative burdens in order to retain custody of their children.
 
This volume of RSF sheds light on the origins, experiences, and consequences of administrative burdens.
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The Rules of Federalism
Institutions and Regulatory Politics in the EU and Beyond
R. Daniel Kelemen
Harvard University Press, 2004

This book examines patterns of environmental regulation in the European Union and four federal polities--the United States, Germany, Australia, and Canada. Daniel Kelemen develops a theory of regulatory federalism based on his comparative study, arguing that the greater the fragmentation of power at the federal level, the less discretion is allotted to component states. Kelemen's analysis offers a novel perspective on the EU and demonstrates that the EU already acts as a federal polity in the regulatory arena.

In The Rules of Federalism, Kelemen shows that both the structure of the EU's institutions and the control these institutions exert over member states closely resemble the American federal system, with its separation of powers, large number of veto points, and highly detailed, judicially enforceable legislation. In the EU, as in the United States, a high degree of fragmentation in the central government yields a low degree of discretion for member states when it comes to implementing regulatory statutes.

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Side Effects and Complications
The Economic Consequences of Health-Care Reform
Casey B. Mulligan
University of Chicago Press, 2015
The Affordable Care Act will have a dangerous effect on the American economy. That may sound like a political stance, but it’s a conclusion directly borne out by economic forecasts.  In Side Effects and Complications, preeminent labor economist Casey B. Mulligan brings to light the dire economic realities that have been lost in the ideological debate over the ACA, and he offers an eye-opening, accessible look at the price American citizens will pay because of it.

Looking specifically at the labor market, Mulligan reveals how the costs of health care under the ACA actually create implicit taxes on individuals, and how increased costs to employers will be passed on to their employees. Mulligan shows how, as a result, millions of workers will find themselves in a situation in which full-time work, adjusted for the expense of health care, will actually pay less than part-time work or even not working at all. Analyzing the incentives—or lack thereof—for people to earn more by working more, Mulligan offers projections on how many hours people will work and how productively they will work, as well as how much they will spend in general. Using the powerful tools of economics, he then illustrates the detrimental consequences on overall employment in the near future.

Drawing on extensive knowledge of the labor market and the economic theories at its foundation, Side Effects and Complications offers a crucial wake-up call about the risks the ACA poses for the economy. Plainly laying out the true costs of the ACA, Mulligan’s grounded and thorough predictions are something that workers and policy makers cannot afford to ignore.
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Social Partnering in Latin America
Lessons Drawn from Collaborations of Businesses and Civil Society Organizations
Social Enterprise Knowledge Network SEKN, ,James E. Austin, Ezequiel Reficco, Gabriel Berger, Rosa María Fischer, Roberto Gutierrez, Mladen Koljatic, Gerardo Lozano, and Enrique Ogliastri
Harvard University Press, 2004

Can businesses collaborate with nonprofit organizations? Drawing lessons from 24 cases of cross-sector partnerships spanning the hemisphere, Social Partnering in Latin America analyzes how businesses and nonprofits are creating partnerships to move beyond traditional corporate philanthropy. An American supermarket and a Mexican food bank, an Argentine newspaper and a solidarity network, and a Chilean pharmacy chain and an elder care home are just a few examples of how businesses are partnering with community organizations in powerful ways throughout Latin America. The authors analyze why and how such social partnering occurs.

The book provides a compelling framework for understanding cross-sector collaborations and identifying motivations for partnering and key levers that maximize value creation for participants and society.

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Social Security
A Fresh Look at Policy Alternatives
Jagadeesh Gokhale
University of Chicago Press, 2010

Many of us suspect that Social Security faces eventual bankruptcy. But the government projects its future finances using long outdated methods. Employing a more up-to-date approach, Jagadeesh Gokhale here argues that the program faces insolvency far sooner than previously thought.

To assess Social Security’s fate more accurately under current and alternative policies, Gokhale constructs a detailed simulation of the forces shaping American demographics and the economy to project their future evolution. He then uses this simulation to analyze six prominent Social Security reform packages—two liberal, two centrist, and two conservative—to demonstrate how far they would restore the program’s financial health and which population groups would be helped or hurt in the process.

Arguments over Social Security have raged for decades, but they have taken place in a relative informational vacuum; Social Security provides the necessary bedrock of analysis that will prove vital for anyone with a stake in this important debate.

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Social Security Policy in a Changing Environment
Edited by Jeffrey R. Brown, Jeffrey B. Liebman, and David A. Wise
University of Chicago Press, 2009
Social Security Policy in a Changing Environment analyzes the changing economic and demographic environment in which social insurance programs that benefit elderly households will operate.  It also explores how these ongoing trends will affect future beneficiaries, under both the current social security program and potential reform options.    In this volume, an esteemed group of economists probes the challenge posed to Social Security by an aging population.  The researchers examine trends in private sector retirement saving and health care costs, as well as the uncertain nature of future demographic, economic, and social trends—including marriage and divorce rates and female participation in the labor force. Recognizing the ambiguity of the environment in which the Social Security system must operate and evolve, this landmark book explores factors that policymakers must consider in designing policies that are resilient enough to survive in an economically and demographically uncertain society.
 
 
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Social Security Programs and Retirement around the World
Disability Insurance Programs and Retirement
Edited by David A. Wise
University of Chicago Press, 2015
Even as life expectancy in many countries has continued to increase, social security and similar government programs can provide strong incentives for workers to leave the labor force when they reach the age of eligibility for benefits. Disability insurance programs can also play a significant role in the departure of older workers from the labor force, with many individuals in some countries relying on disability insurance until they are able to enter into full retirement.      
           
The sixth stage of an ongoing research project studying the relationship between social security programs and labor force participation, this volume draws on the work of an eminent group of international economists to consider the extent to which differences in labor force participation across countries are determined by the provisions of disability insurance programs. Presented in an easily comparable way, their research covers twelve countries, including Canada, Japan, and the United States, and considers the requirements of disability insurance programs, as well as other pathways to retirement.
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front cover of Soft Corruption
Soft Corruption
How Unethical Conduct Undermines Good Government and What To Do About It
Schluter, William E
Rutgers University Press, 2017
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The State after Statism
New State Activities in the Age of Liberalization
Jonah Levy
Harvard University Press, 2006

This book assesses the changing nature of state intervention in the economies of the affluent democracies. Against a widespread understanding that contemporary developments, such as globalization and new technologies, are pressing for a rollback of state regulation in the economy, the book shows that these same forces are also creating new demands and opportunities for state intervention. Thus, state activism has shifted, rather than simply eroded.

State authorities have shifted from a market-steering orientation to a market-supporting one. Chief among the new state missions are: repairing the main varieties of capitalism (liberal, corporatist, and statist); making labor markets and systems of social protection more employment-friendly; recasting regulatory frameworks to permit countries to cross major economic and technological divides; and expanding market competition at home and abroad.

Because the changes from market steering to market support are so controversial and far-reaching, state officials often find themselves making choices that produce clear winners and losers. Such choices require a capacity to act unilaterally and decisively, even in the face of substantial societal opposition. As a result, state activism, autonomy, and occasionally imposition remain essential for meeting the challenges of today's globalizing economy.

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Tax Policy and the Economy, Volume 26
Edited by Jeffrey R. Brown
University of Chicago Press Journals, 2012
There is no question that the US is facing significant fiscal challenges. Tax Policy and the Economy research papers make valuable contributions to our understanding of the economic effects of alternative approaches. The papers collected in Volume 26 include a study of an important determinant of the labor supply effects of Social Security; an examination of the budgetary and economic impact of changing how employer health insurance is treated in the tax code; an analysis of how US investment in Europe might be impacted by proposed corporate tax reform in the European Union; a look at the term “tax expenditures,” often used to describe governmental policies that show as reduction in taxes rather than as an increase in spending. The final paper in the volume shows how uncertainty about the restoration of US fiscal balance imposes additional efficiency costs on the economy in consumption, saving, labor supply and portfolio decisions, and how it reduces individual welfare.
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Tax Policy and the Economy
Volume 32
Edited by Robert A. Moffitt
University of Chicago Press Journals, 2018
The six research studies in Volume 32 of Tax Policy and the Economy analyze the U.S. tax and transfer system, in particular its effects on revenues, expenditures, and economic behavior. First, James Andreoni examines donor advised funds, which are financial vehicles offered by investment houses to provide savings accounts for tax-free charitable giving, and weighs their effects on donations against their tax cost. Second, Caroline Hoxby analyzes the use of tax credits by students enrolled in online post-secondary education. Third, Alex Rees-Jones and Dmitry Taubinsky explore taxpayers’ psychological biases that lead to incorrect perceptions and understanding of tax incentives. Fourth, Jeffrey Clemens and Benedic Ippolito investigate the implications of block grant reforms of Medicaid for receipt of federal support by different states. Fifth, Andrew Samwick examines means-testing of Medicare and federal health benefits under the Affordable Care Act. Sixth, Bruce Meyer and Wallace Mok study the incidence and effects of disability among U.S. women from 1968 to 2015, examining the impacts of disability on income, consumption, and public transfers.
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front cover of Tax Policy and the Economy, Volume 33
Tax Policy and the Economy, Volume 33
Edited by Robert A. Moffitt
University of Chicago Press Journals, 2019
This volume presents five new studies on taxation and government transfer programs.  Alexander Blocker, Laurence Kotlikoff, Stephen Ross, and Sergio Villar Vallenas show how asset pricing can be used to value implicit fiscal debts, which are currently rarely measured or adjusted for risk, while accounting for risk properties.  They apply their methodology to study Social Security.  Michelle Hanson, Jeffrey Hoopes, and Joel Slemrod examine the effects of the Tax Cuts and Jobs Act on corporation behavior and on firms’ statements about their behavior.  They focus on for four outcomes: bonuses, investment, share repurchases, and dividends. Scott Baker, Lorenz Kueng, Leslie McGranahan, and Brian Melzer explore whether “unconventional” fiscal policy in the form of pre-announced consumption tax changes can shift durables purchases intertemporally, how it such shifts are affected by consumer credit.  Alan Auerbach discusses “tax equivalences,” disparate sets of policies that have the same economic effects, and also illustrates when these equivalences break down.  Jeffrey Liebman and Daniel Ramsey use data from NBER’s TAXSIM model to investigate the equity implications of a switch from joint to independent taxation that could occur in conjunction with adoption of return-free tax filing.
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front cover of Tax Policy and the Economy, Volume 34
Tax Policy and the Economy, Volume 34
Edited by Robert A. Moffitt
University of Chicago Press Journals, 2020
This volume presents five new studies on current topics in taxation and government spending.  Mark Shepard, Katherine Baicker, and Jonathan Skinner explore implementation aspects of a Medicare-for-All program, which provides a uniform health insurance benefit to everyone, and contrast it with a program providing a basic benefit that can be supplemented voluntarily. John Beshears, James Choi, Mark Iwry, David John, David Laibson, and Brigitte Madrian examine the design and feasibility of firm-sponsored “rainy day funds,” short-term savings accounts for employees that can be used when faced with temporary periods of high expenditure. Robert Barro and Brian Wheaton investigate the impact of taxation on choice of corporate form, on the formation and legal structure of new businesses, and indirectly on productivity in the economy. Jonathan Meer and Benjamin Priday examine the impact of the 2017 federal income tax reform, which reduced marginal tax rates and the incentive for charitable giving, on such giving. Finally, Casey Mulligan analyzes the impact of the Affordable Care Act on whether firms employ fewer than 50 employees, the employment threshold below which they are exempt from the requirement to provide health insurance to their employees.
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front cover of Tax Policy and the Economy, Volume 35
Tax Policy and the Economy, Volume 35
Edited by Robert A. Moffitt
University of Chicago Press Journals, 2021
This volume presents six new studies on current topics in taxation and government spending. The first study looks at the costs of income tax filing, which have risen over time because of the numerous tax forms families have to fill out when filing their taxes and because of increased costs of itemizing deductions, and explores ways to simplify filing and reduce those costs. The second study investigates the design of income tax schedules when there is uncertainty about the way taxation affects household behavior. The third study provides new and comprehensive estimates of the impact of the US Earned Income Tax Credit on the employment of low-income men and women, finding that the large majority of the various expansions of that credit over the last forty years have increased employment of single mothers. The fourth study reviews the structure of business taxation in China and describes a number of tax distortions and potential inefficiencies in the system. The next paper considers how the Affordable Care Act has affected the health insurance and labor market choices of individuals who are between the ages of 60 and 64, and it finds increases in insurance coverage and reductions in employment for some groups. The last study considers how reimbursement rates for health care providers under various government insurance programs affect providers’ willingness to take on new patients and expand their patient capacity.
 
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front cover of Tax Policy and the Economy, Volume 36
Tax Policy and the Economy, Volume 36
Edited by Robert A. Moffitt
University of Chicago Press Journals, 2022
This volume presents five new studies on current topics in taxation and government spending.  
Natasha Sarin, Lawrence Summers, Owen Zidar, and Eric Zwick study how investors respond to taxes on capital gains, whether their incentives to invest are affected by those taxes, and whether that responsiveness has changed over time. Ethan Rouen, Suresh Nallareddy, and Juan Carlos Suárez Serrato revisit the question of whether cuts to corporate taxes increase income inequality, bringing new data and new statistical techniques to generate fresh findings. Alan Auerbach and William Gale investigate whether the advantages and disadvantages of different types of taxation are affected when interest rates stay low for long periods, as has been the case in the U.S. for many years. Nora Gordon and Sarah Reber study the distributional impact of emergency subsidies to schools made by the federal government during the recent COVID pandemic and whether those subsidies were sufficient to cover the increased school costs induced by the pandemic. Jacob Goldin, Elaine Maag, and Katherine Michelmore investigate the fiscal cost of an expansion of the U.S. child tax credit, which has been discussed extensively in policy circles recently. They take into account not only the direct expenditure on the allowance but how cost is affected by the existence of work incentives and by possible beneficial effects on childrens’ adult earnings.
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front cover of Taxation in the Global Economy
Taxation in the Global Economy
Edited by Assaf Razin and Joel Slemrod
University of Chicago Press, 1990
The increasing globalization of economic activity is bringing an awareness of the international consequences of tax policy. The move toward the common European market in 1992 raises the important question of how inefficiencies in the various tax systems—such as self-defeating tax competition among member nations—will be addressed. As barriers to trade and investment tumble, cross-national differences in tax structures may loom larger and create incentives for relocations of capital and labor; and efficient and equitable income tax systems are becoming more difficult to administer and enforce, particularly because of the growing importance of multinational enterprises. What will be the role of tax policy in this more integrated world economy?

Assaf Razin and Joel Slemrod gathered experts from two traditionally distinct specialties, taxation and international economics, to lay the groundwork for understanding these issues, which will require the attention of scholars and policymakers for years to come.

Contributors describe the basic provisions of the U.S. tax code with respect to international transactions, highlighting the changes contained in the U.S. Tax Reform Act of 1986; explore the ways that tax systems influence the decisions of multinationals; examine the effect of taxation on trade patterns and capital flows; and discuss the implications of the opening world economy for the design of optimal international tax policy. The papers will prove valuable not only to scholars and students, but to government economists and international tax lawyers as well.
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front cover of The Taxation of Income from Capital
The Taxation of Income from Capital
A Comparative Study of the United States, the United Kingdom, Sweden and West Germany
Mervyn A. King and Don Fullerton
University of Chicago Press, 1984
Taxation—both corporate and personal—has been held responsible for the low investment and productivity growth rates experienced in the West during the last decade. This book, a comparative study of the taxation of income from capital in the United States, the United Kingdom, Sweden, and West Germany, establishes for the first time a common framework for analysis that permits accurate comparison of tax systems.
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Varieties of State Regulation
How China Regulates Its Socialist Market Economy
Yukyung Yeo
Harvard University Press

In Varieties of State Regulation, Yukyung Yeo explores how, despite China’s increasing integration into the global market, the Chinese central party-state continues to oversee the most strategic sectors of its economy. Since the 1990s, as major state firms were spun off from the ministries that managed them under the central planning system, the nature of the state in governing the economy has been remarkably transformed into that of a regulator.

Based on over 100 interviews conducted with Chinese central and local officials, firms, scholars, journalists, and consultants, the book demonstrates that the form of central state control varies considerably across leading industrial sectors, depending on the dominant mode of state ownership, conception of control, and governing structure. By analyzing and comparing institutional dynamics across various sectors, Yeo explains variations in the pattern of China’s regulation of its economy. She contrasts the regulation of the automobile industry, a relatively decentralized sector, with the highly-centralized telecommunications industry, and demonstrates how China’s central party-state maintains regulatory authority over key local state-owned enterprises. Placing these findings in historical and comparative contexts, the book presents the evolution and current practice of state regulation in China and examines its compatibility with other contemporary government practices.

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front cover of Voices of Change in Cuba from the Non-State Sector
Voices of Change in Cuba from the Non-State Sector
Carmelo Mesa-Lago
University of Pittsburgh Press, 2018
More than one million Cubans, representing thirty percent of the country’s labor force, currently make up the nonstate sector. These include self-employed workers and micro-entrepreneurs, sharecropping farmers, members of new cooperatives, and buyers and sellers of private dwellings. This development represents a crucial structural reform implemented by Raúl Castro since becoming Cuba’s leader in 2006, and may become the most dynamic economic force for the country’s future. Despite this phenomenon, little has been published about the demographic makeup of this group (age, gender, race, and education), as well as their economic conditions and aspirations.
            Based on eighty in-depth interviews recently conducted in Cuba, this book captures actual voices from this evolving economic sector. It details workers’ level of satisfaction with what they do and earn, profits (and how they are allocated between consumption and investment), plans to expand their activities, receiving foreign remittances and microcredit, competition, forms of advertising, and payment of taxes. Perhaps most revealing are the speakers’ views on the obstacles they face and their desires for change and improvement. As such, the book offers fascinating insights into today’s Cuban economy from the nonstate sector, while also reflecting on its potential for development and the obstacles it faces.
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front cover of The Warping of Government Work
The Warping of Government Work
John D. Donahue
Harvard University Press, 2008

Government has become a refuge, and a relic, of America’s crumbling middle-class economy. As the public and private worlds of work have veered in different directions, the gaps between them are warping government work in unintended ways.

Three decades of economic turbulence have rendered American workplaces more demanding and less secure, more rewarding for high-end workers and punishing for workers without advanced skills. This workplace revolution, however, has largely bypassed government. Public employees—representing roughly one-sixth of the total workforce—still work under the conditions of dampened risk and constrained opportunity that marked most of the economy during the middle-class boom following World War II.

The divergent paths of public and private employment have intensified a long-standing pattern: elite workers spurn public jobs, while less skilled workers cling to government work as a refuge from a harsh private economy. The first trend creates a chronic talent deficit in the public sector. The second trend makes the government workplace rigid and resistant to change. And both contribute to shortfalls in public-sector performance.

The Warping of Government Work documents government’s isolation from the rest of the American economy and arrays the stark choices we confront for narrowing, or accommodating, the divide between public and private work.

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front cover of Wheel of Fortune
Wheel of Fortune
The Battle for Oil and Power in Russia
Thane Gustafson
Harvard University Press, 2012

A Foreign Affairs Best Book of the Year on Eastern Europe and the Former Soviet Republics

The Russian oil industry—which vies with Saudi Arabia as the world’s largest producer and exporter of oil, providing nearly 12 percent of the global supply—is facing mounting problems that could send shock waves through the Russian economy and worldwide. Wheel of Fortune provides an authoritative account of this vital industry from the last years of communism to its uncertain future. Tracking the interdependence among Russia’s oil industry, politics, and economy, Thane Gustafson shows how the stakes extend beyond international energy security to include the potential threat of a destabilized Russia.

“Few have studied the Russian oil and gas industry longer or with a broader political perspective than Gustafson. The result is this superb book, which is not merely a fascinating, subtle history of the industry since the Soviet Union’s collapse but also the single most revealing work on Russian politics and economics published in the last several years.”
—Robert Legvold, Foreign Affairs

“The history of Russia’s oil industry since the collapse of communism is the history of the country itself. There can be few better guides to this terrain than Thane Gustafson.”
—Neil Buckley, Financial Times

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front cover of When All Else Fails
When All Else Fails
Government as the Ultimate Risk Manager
David A. Moss
Harvard University Press, 2004

One of the most important functions of government—risk management—is one of the least well understood. Moving beyond the most familiar public functions—spending, taxation, and regulation—When All Else Fails spotlights the government’s pivotal role as a risk manager. It reveals, as never before, the nature and extent of this governmental function, which touches almost every aspect of economic life.

In policies as diverse as limited liability, deposit insurance, Social Security, and federal disaster relief, American lawmakers have managed a wide array of private-sector risks, transforming both the government and countless private actors into insurers of last resort. Drawing on history and economic theory, David Moss investigates these risk-management policies, focusing in particular on the original logic of their enactment. The nation’s lawmakers, he finds, have long believed that pervasive imperfections in private markets for risk necessitate a substantial government role. It remains puzzling, though, why such a large number of the resulting policies have proven so popular in a country famous for its anti-statism. Moss suggests that the answer may lie in the nature of the policies themselves, since publicly mandated risk shifting often requires little in the way of invasive bureaucracy. Well suited to a society suspicious of government activism, public risk management has emerged as a critical form of government intervention in the United States.

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front cover of When Wall Street Met Main Street
When Wall Street Met Main Street
The Quest for an Investors' Democracy
Julia C. Ott
Harvard University Press, 2011

The financial crisis that began in 2008 has made Americans keenly aware of the enormous impact Wall Street has on the economic well-being of the nation and its citizenry. How did financial markets and institutions-commonly perceived as marginal and elitist at the beginning of the twentieth century-come to be seen as the bedrock of American capitalism? How did stock investment-once considered disreputable and dangerous-first become a mass practice?

Julia Ott tells the story of how, between the rise of giant industrial corporations and the Crash of 1929, the federal government, corporations, and financial institutions campaigned to universalize investment, with the goal of providing individual investors with a stake in the economy and the nation. As these distributors of stocks and bonds established a broad, national market for financial securities, they debated the distribution of economic power, the proper role of government, and the meaning of citizenship under modern capitalism.

By 1929, the incidence of stock ownership had risen to engulf one quarter of American households in the looming financial disaster. Accordingly, the federal government assumed responsibility for protecting citizen-investors by regulating the financial securities markets. By recovering the forgotten history of this initial phase of mass investment and the issues surrounding it, Ott enriches and enlightens contemporary debates over economic reform.

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front cover of The World Bank Unveiled
The World Bank Unveiled
Inside the revolutionary struggle for transparency
David Ian Shaman
Parkhurst Brothers, Inc., 2009

Nobel Prize winning economist and former World Bank Chief Economist, Joseph Stiglitz, has repeatedly discussed the importance of transparency in policymaking at the World Bank and International Monetary Fund.  He believes a lack of transparency in the two institutions has lead to bad decisions.  Bad decisions at IMF and the World Bank mean real pain for the world’s poor.

There is a perception that “the suits” close the World Bank’s doors to deliberate the fate of earth’s poorest populations and only when the doors are unlocked do people living in poverty learn what has been decided about their future.  Meanwhile donations are down.  The bank’s critical International Development Association’s funding has dropped dramatically.  Managers are discouraged by studies examining the World Bank’s effectiveness.  How, they wonder, could such large beneficences have so little impact on poor populations? 

   Events of the past two years have only increased the stakes.  First, rising fuel prices caused a worldwide rise in the price of basic foods.  Then the deepest economic downturn since the Great Depression sapped donor nation’s coffers.  By the end of the Bush administration in 2009, giving by the USA lagged more than any other wealthy nation.  

   In 1999, two Bank researchers understood the situation was already on a precipice.  World Bank loans had ceased to make significant impact on poverty in many client nations.  Certain governments and multi-national corporations were destroying environments and desecrating indigenous cultures, all to achieve short-term gains for a fortunate few. 

 Demonstrable successes were few, and every World Bank conference became a melee of demonstrators and police.  The two researchers asked themselves whether it was possible to open up the institution by increased transparency, improve its accountability, and mute criticism.  They decided to launch an internet-based broadcast to disseminate unedited videos of internal discussions and debates.  The bank’s culture and bureaucracy, hardened over a half-century, presented them with a formidable foe.  Some powerful officials feared the transparency initiative; others withheld public support while standing on the sidelines.  The World Bank Unveiled documents this epic struggle.  It is the story of a revolution to transform the World Bank and a case study of the power of the Bank to transform people’s lives.

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