How China’s Anti-Corruption Campaign Is Moving Financing Away from State-Owned Enterprises

Are anti-corruption reforms effective in reducing economic rent seeking and constraining the influence of special interests? New research from Tsinghua University PBC School of Finance finds that anti-corruption investigations in China are associated with credit reallocation from less productive state-owned enterprises (SOEs) to more productive non-SOEs. The series of investigations constitute staggered events to identify the causal impact of anti-corruption reforms on bank financing.

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Rethinking Stigler’s Theory of Regulation: Regulatory Capture or Deregulatory Capture?

Much government regulation does not fit the logic of Stigler’s theory of anti-competitive regulatory capture. In a new book, Steven Vogel of Berkeley argues that the theory of regulation needs to account for the phenomenon of captured regulators bent on deregulating—and that the critical consideration facing regulators is no longer how to enhance competition, but how different governance models favor different actors.  

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Editors’ Briefing: This Week in Political Economy (May 4–May 12)

A whistleblower alleges fraud in the audits of Silicon Valley companies; AT&T acknowledges that hiring Michael Cohen was a “bad mistake”; new analysis finds that Amazon has not been consistent with the stated selection criteria for HQ2; and a majority of Americans back a constitutional amendment that would outlaw Citizens United. This week in political economy.   

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Glen Weyl: “The Very Structure of Capitalism Is Inherently Monopolistic”

In an interview with ProMarket, Glen Weyl, co-author of the wildly ambitious (and wildly controversial) new book Radical Markets: Uprooting Capitalism and Democracy for a Just Society, talks about antitrust, data as labor, and why he thinks the free market system is not actually free. “The entire business community has been speaking with one voice in the common interest of capital as a class,” he says.  

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Former Italian PM and European Competition Commissioner Mario Monti: Why Antitrust Enforcement Is “More Vigorous” in Europe Than in the US

Why is Europe so much more vigorous than the US when it comes to antitrust enforcement? In an interview with ProMarket, Monti, who served as the EU’s Competition Commissioner between 1999 and 2004, offers a possible explanation: American antitrust’s sensitivity to election outcomes and industry lobbying.  

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