Math Gone Mad: Regulatory Risk Modeling by the Federal Reserve

The U.S. financial system faces a major, growing, and much under-appreciated threat from the Federal Reserve’s risk modeling agenda.  In a new study, finance professor Kevin Dowd looks at the weaknesses and problems with the Fed’s regulatory stress tests.  According to Dowd, while these tests were intended to make the financial system safe, they have instead created the potential for a new systemic financial crisis.

Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts

An essential input in the design of housing policy is a rigorous understanding of whether and how much the attributes and actions of neighbors affect surrounding people and properties. While the relevance of such spillovers appears intuitive, credibly identifying the existence of these spillovers and quantifying their magnitude poses a significant empirical challenge.  In new research, David H. Autor, Christopher J. Palmer and Parag A. Pathak assess the importance of housing market spillovers empirically by using the end of rent-control as a looking glass into the workings of the Cambridge, Massachusetts housing market.

The Dead Hand of Socialism: State Ownership in the Arab World

Extensive government ownership in the economy is a source of inefficiency and a barrier to economic development. Although precise measures of government ownership across the Middle East and North Africa (MENA) are hard to come by, the governments of Algeria, Egypt, Libya, Syria, and Yemen all operate sizeable segments of their economies—in some cases accounting for more than two-thirds of the GDP. In a new paper, Cato scholar Dalibor Rohac argues that MENA countries need to implement privatization in order to sustain their transitions toward more representative political systems and inclusive economic institutions.

Clicking on Heaven’s Door: The Effect of Immigrant Legalization on Crime

According to an annual survey conducted in North American and European countries, approximately two-thirds of the people interviewed are concerned that illegal immigrants increase crime, whereas fewer have the same concern about legal immigrants.  New research by Paolo Pinotti indicates that legal status does significantly reduce the number of serious crimes committed by immigrants, and that the impact is highest for economically motivated crimes.

Recent Commentary

Events

September 10

Lessons from Ferguson

Featuring Alice Goffman, Author, On the Run (University of Chicago Press, 2014); Neill Franklin, Executive Director, Law Enforcement Officers Against Prohibition (LEAP); Ethan Brown, Author, Snitch (Public Affairs, 2007); and Lauren Victoria Burke, Creator, Crewof42 Blog; moderated by Tim Lynch, Director, Project on Criminal Justice, Cato Institute.

4:00pm Hayek Auditorium

Of Special Note

Cato Home Study Course

Cato Home Study Course

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• Professionally prepared audio programs on the historical, philosophical, economic, legal, and moral foundations of individual liberty and limited government – including the thoughts and views of John Locke, Thomas Jefferson, Thomas Paine, James Madison, Adam Smith, Voltaire, John Stuart Mill, Henry David Thoreau, Ayn Rand, F.A. Hayek, Milton Friedman, and others.

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Constitution Day

Constitution Day 2014

To celebrate Constitution Day and the publication of the thirteenth annual Cato Supreme Court Review, the Cato Institute’s Center for Constitutional Studies Presents a Symposium:

The Supreme Court: Past and Prologue
A Look at the October 2013 and 2014 Terms

Wednesday, September 17, 2014
10:30 a.m. – 7:00 p.m.

This annual event features leading legal scholars analyzing the most important decisions of the Supreme Court’s recent term, and a look ahead at what to expect during the Court’s next term.

Details and registration