Regulatory Studies

How ‘Market Failure’ Arguments Lead to Misguided Policy

“Market failure” is a common justification for new government policies. Proponents of interventions love to point to instances of apparently imperfect markets and assume that government taxation, subsidies, and regulation can seamlessly perfect them, thus maximizing social welfare. But according to a new paper by Cato scholar Ryan Bourne, this simplistic approach—predicated on the idea that government can perfect markets—leads to more intervention or higher taxes than what is optimal and has significant unintended consequences.

Ending Chevron Deference

The word is out: the Supreme Court is poised to roll back the Chevron doctrine. Set out in Chevron v. Natural Resources Defense Council (1984), the opinion states that when Congress has not “spoken directly to the precise question at issue,” a court reviewing an agency action “may not substitute its own construction of a statutory provision for a reasonable interpretation made by … the agency.” That gives agencies more flexibility in making law by issuing regulations. In the new issue of Regulation, law professor David Schoenbrod argues that the Court should ground any modification of Chevron on the constitutional norm that the “lawmakers” elected by the governed—that is, members of Congress—should take responsibility for the laws.

Parental Leave: Is There a Case for Government Action?

Paid parental leave provides workers with financial compensation during temporary absences following the birth or adoption of a child. Private companies often provide paid leave and the federal government mandates 12 weeks of job-protected unpaid leave. Some policymakers have pushed for further government action. They claim that government-supported leave would markedly improve workers’ lives by improving labor-market outcomes and reducing gender inequality. In a new paper, Cato scholar Vanessa Brown Calder provides economic research and federal data that suggest otherwise.

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Of Special Note

Freedom: Art as the Messenger

Freedom: Art as the Messenger

The Cato Institute welcomes artists working in any medium to address the concept of Freedom: Art as the Messenger. We are living in an era where people are finding their combative voice but having little conversation or dialogue. The goal of this inaugural exhibition is to provide a medium for that conversation.

This exhibition invites all investigative points of view in all media; 2-D, 3-D, audio, and video. A full spectrum of interpretation is invited — whether personal, emotional, general, realistic or imagined, communal, or individual — addressing Freedom in all its manifestations through art.

Special! 10 Copies for $10

Cato Pocket Constitution

To encourage people everywhere to better understand and appreciate the principles of government that are set forth in America’s founding documents, the Cato Institute published this pocket-size edition.

Now Available

Home Study Resources

The Cato Institute offers a wealth of online educational audio and video resources, from self-paced guides on the ideas of liberty and the principles of economics, to exclusive, archived lectures by thinkers such as Milton Friedman and F. A. Hayek. Browse through some highlights of our collections, for personal study or for use in the classroom.

The Jones Act: Charting a New Course after a Century of Failure

For nearly 100 years the Jones Act has restricted the transportation of cargo between two points in the U.S. to ships that are U.S.-built, crewed, owned, and flagged. Meant to bolster the U.S. maritime industry, the Act has instead led to a steady deterioration in the number of ships, sailors, shipyards, and has imposed large economic burdens. This full-day conference examined the Act in greater detail and evaluated options for reform.