The financial services industry thus plays a vital but underappreciated role in financing small firms—a role that has important implications for how new financial regulations may be impacting small-business owners’ access to credit.
The federal role in highway spending is expected to get smaller because fuel tax revenues are decreasing and Congress is holding off on raising the federal gas tax rate. Meanwhile, states are not getting the most out of their highway spending. Traffic congestion plagues urban areas, and simply investing in highways and transit will not be enough to fix the problem.
A new study for the Mercatus Center at George Mason University discusses general principles that can help states maximize the value they get from their highway spending. While no two states are identical, policymakers can still learn from one another by observing what works and using the same general principles to create reforms that work for their states.
The U.S. government’s covert drone program is a defining aspect of its military strategy in the transnational War on Terror. We highlight a fundamental paradox with the use of drones to combat terrorism.
The Regulatory Report Card reveals that the quality and use of regulatory analysis by federal agencies do not live up to the standards articulated in executive orders and guidance the Office of Management and Budget has created for agencies. The average Report Card score for recent regulations barely exceeds 50 percent.
Medicaid was established in 1965 as a joint state and federal program to provide medical insurance to Americans who are poor and have disabilities, and it has grown from 1 percent to 3 percent of GDP. The source of Medicaid’s growth over the past 50 years must inform efforts to reform the program and slow spending. The literature on the political economy of Medicaid provides strong evidence of interest group and political ideological influence, enabled by the open-ended federal match for state spending.
Using a three-player dictator-game experiment, we find that similar performance during a shared self-determined experience causes a redistributor to privilege the stakeholder who performed similarly. Sharing a self-determined experience, however, is not, in itself, sufficient to influence redistributive preferences.
Austrian macroeconomists of the interwar period saw the economy as a complex adaptive system, in which macroeconomic variables emerge from the interaction between millions of purposefully acting agents. Recent advances in computation technology allow us to build empirically salient synthetic economies in silico, and thereby formalize many Austrian insights.
Deirdre McCloskey’s trilogy on the Bourgeois Era has set a new intellectual standard in discussing the “Great Fact” of human history. McCloskey’s answer is it is not technological, it is not even institutional, it is ideological and without that ideological component you cannot explain the rise of the Western World. Our contribution to this symposium is to emphasize the role of “two-tiered” entrepreneurship in explaining this “Great Fact.”…
Our contribution in this chapter is to address the argument made by philosopher Samuel Freeman (2001) that libertarianism is not a liberal view. Freeman’s argument is based on the claim that full alienability of property rights is antithetical to liberal political institutions. We address Freeman’s argument by arguing twofold.
Information, investment and innovation are the engines of economic growth in the 21st century. Yet regulatory accumulation and outdated regulatory processes are preventing both the private and public sectors from effectively using the three “I’s” to solve problems and grow the economy.
Mercatus PhD Fellow Vipin Veetil, along with Akshaya Vijayalakshmi and Srikanth Viswanathan, address Amartya Sen's criticism of cash-transfer programs such as education vouchers in the Wall Street Journal.
Elinor Ostrom was the first woman to win the Nobel Prize in economics. She has been at the forefront of New Institutional Economics and Public Choice revolutions, discovering surprising ways in which communities around the world have succeed in solving difficult collective problems.