Government & Markets
The Panic of 1907
What were the economic consequences of the Panic of 1907? In a recent working paper, Carola Frydman
, Eric Hilt
, and Lily Zhou
present new evidence regarding the impact of the Panic of 1907 on corporations and find that those corporations with direct ties to trust companies performed worse than their peers. In addition to contributing to the literature on the Panic of 1907, these findings offer important insights into understanding the potential effects of economic crises today.
[Read the working paper]
On Theoretical Foundations for Regulating Financial Markets
Is the regulation of financial markets an attempt to govern the ungovernable? In a new essay, Katharina Pistor
presents several theoretical frameworks for understanding financial markets, and reviews and critiques their divergent regulatory implications. Professor Pistor suggests that to reform financial regulation, we should turn to the question of how to restructure the financial system to make it more governable.
[Read the paper]
"Big banks" afford unique benefits to their shareholders and consumers, but they also risk imposing costs that extend beyond these groups and onto the public at large. In a forthcoming article, Lawrence Baxter
details both the benefits and costs of big banks, and proposes policy responses, such as providing a stronger role for public representatives in bank governance.
[Read the paper]
Has the Obama Justice Department Reinvigorated Antitrust Enforcement?
While the Department of Justice under the Obama Administration has cultivated a reputation for reinvigorating antitrust enforcement, Daniel Crane
argues that this reputation may be unearned. Professor Crane uses a variety of quantitative and qualitative metrics to compare enforcement under Presidents Obama and Bush, and finds the two are surprisingly similar.
[Read the article]