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You searched for: label/principal-agent problem

Should Bush Tax Cuts Be Allowed To Expire?

problem is not social security or standard government spending including defense. There are two long run problems. One is medical spending. the second is interest on the debt and it…

Roubini and the Bail-in this weekend

…and severely exacerbate the moral hazard problem. But here lies the conundrum of this Lehman crisis: no one seems to want to buy for a positive price Lehman unless there…

Working class

…companies capture tax breaks intended for pensions of regular workers and use them to pay for executives’ supplemental benefits and compensation. What’s the problem with this? Well, there are basically…

BW on Soc Sec VII: Present Value vs Present Values

…‘drown it in the bathtub’ people all of whom are starting from the ideological position ‘Big Government is not the Solution, Big Government is the Problem’. These folks simply don’t…

Austan Goolsbee, Obama’s Econ Man

…may be Obama’s secret to his oratory ability? He thinks deficits matter. He thinks companies have a morality problem: The evidence shows that companies are particularly likely to raise prices…

CORPORATE TAX RATES

…to the economic sector that actually does the investments. But this is also the problem with the standard supply side argument that cutting taxes at the individual level really does…

Slavery in my backyard 2

…government had estimated. In addition, 148 federal cases have been brought nationwide, some by the Justice task forces, which are composed of prosecutors, agents from the FBI and Immigration and…

FDIC op ed in NYT

Sheila C. Blair of FDIC offers an opinion on the mortgage crisis in the NYT. THERE have been many proposals to deal with the problems in the mortgage market. But…

Human capital is where it’s at!

…discusses pollution as a resource management issue: It’s not a pollution problem; it’s a natural resources management problem. How do you maintain soil quality? How do you generate profits with…