Weak antitrust enforcement set the stage for Facebook and Google to extract the fruits of publishers’ labor. We won’t be able to save journalism and solve our disinformation problem unless we weaken monopolies’ power.
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The Effects of Concentration in the Asset Management Industry on Stock Prices
The asset management industry has become increasingly concentrated in recent decades. Regulators are concerned about the systemic risks this may pose. Using data from the US, this column suggests that the increased concentration has led to more volatile prices of stocks held by large institutional investors. This poses challenges for regulators trying to weigh price efficiency and economies of scale.
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Protecting the Independence and Integrity of Research: Introducing the Academic Capture Warning System
Inappropriate financial donor influence at institutions of higher education appears to be on the rise and risks eroding public trust in academic research. In order to defend academic freedom and institutional independence, we have decided to create a new database to document clear violations of well-accepted norms involving financial donations.
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Do the Sons of Rich Families Recover After a Large Wealth Shock? Evidence From the US Civil War
One striking feature of many underdeveloped societies is that economic power is concentrated in the hands of very small powerful elites. Why is it the case that some elites show remarkable persistence and even retain their power after major economic disruptions, like civil wars or democratization? The fortune of wealthy white southern households and their sons after the American Civil War is one such case in point.
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Study: Political Connections Lower Companies’ Tax Rates and Risk of Being Audited
How does the revolving door between Congress and corporate America affect the enforcement of tax policy? A new study examines how tax rates change when firms hire former members of Congress, finding that companies’ tax bills and the probability of being audited decrease markedly when they hire a former legislator.
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Market Concentration, Regulation, and Europe´s Quest for a New Industrial Policy
Weakening competition policy in Europe risks creating monopolies rather than industrial champions.
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Are “Patent Trolls” Stick-Up Artists or Just Benign Middlemen?
A new study explores the dual effect that non-practicing entities, commonly known as patent trolls, have on innovation and the market of ideas.
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When We Outsource Privacy Compliance, We May Undermine Privacy Protection
Privacy law is currently being shaped and implemented by a new industry of third-party tech vendors. These companies code their own interpretations of privacy laws into the designs of their products, but many are doing so without legal expertise.
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Self-Regulation and the Video Game Industry: A New Stigler Center Case Study
A new Stigler Center case study explores questions surrounding the ESRB, the self-regulatory body responsible for assigning age and content ratings to video games.
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“Economics Now Points Away From the Laissez-Faire Approach”
Columbia professor Suresh Naidu on Economics for Inclusive Prosperity, the new initiative he launched with Dani Rodrik and Gabriel Zucman, and why he believes economics shouldn’t be conflated with neoliberalism.
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The Costs of Trump’s Import Tariffs Have Landed Entirely on US Citizens
US importers and consumers experienced $12.3 billion in added tax costs and another $6.9 billion from unrecoverable reductions in welfare arising from the 2018 tariffs, new study finds.
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How Finance Affects Income Inequality
There is mounting evidence that income inequality and disparities in wealth have been rising in advanced economies in the recent decades. Using data on advanced and emerging economies, this column investigates the link between an economy’s financial structure—that is, the mix of bank-provided versus market-provided funds—and income inequality. Results show that the relationship is not monotonic. More finance reduces income inequality up to a point, but beyond that point inequality rises, especially if finance is expanded via market-based financing.
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