ECONOMICS OF REGULATION (by Crispulo Marmolejo)

After a long time….WE ARE BACK!!!

Administrator — Sat, 01 Aug 2009 14:23:24 +0000

After a long time without posting, Economicsofregulation.blogsome.com is back… Attention to the new post and…here we go again!!!!!!!!!!!

El nuevo Zar regulatorio de Obama

Administrator — Fri, 16 Jan 2009 15:15:04 +0000

Hace algunos días se ha confirmado la noticia que el recién electo Presidente los Estados Unidos Barack Obama ha propuesto en el cargo de director de la Oficina de Información y Asuntos Regulatorios de la Casa Blanca al destacadísimo profesor de la Universidad de Harvard y prolífico autor Cass Sunstein. Debiendo confesar mi predilección por la lectura de los libros y papers de Sunstein, el caso es que se trata de una de las figuras académicas más destacadas, prolíficas y citadas no solo en Estados Unidos sino que en el cada día más globalizado mundo de la enseñanza legal. Cass Sunstein fue profesor de la Escuela de Derecho de la Universidad de Chicago por 27 anos hasta su reciente traslado a Harvard, ha escrito más de 20 libros sobre Derecho Constitucional, Teoría del Derecho y Law and Economics, en su vertiente más orientada al comportamiento de los individuos. La relación de amistad entre Obama y Sunstein viene desde los años en que el electo Presidente ensenaba Derecho Constitucional en Chicago, y con esta nominación, aun cuando se trate de una autoridad con un perfil intermedio, pareciera darse algunas señales importantes. En primer lugar, Obama está consciente que un ingrediente importante de la actual crisis financiera es el regulatorio, en el sentido que los controles fueron ineficientes y que algo más profundo ocurrió en la compleja trama de fiscalización y funcionamiento del mercado financiero americano. En segundo lugar, la nominación de un académico de la altura de Sunstein significa que el nuevo gobierno aspira a integrar en su staff a personas de categoría profesional relevante, a diferencia de lo que muchas veces ocurre en países menos desarrollados y democracias de menor calidad, en que priman la raigambre política y la asignación de cuotas a partidos. En tercer lugar, es de esperar que con la nominación de Sunstein se inicie un proceso de reflexión profunda acerca de la estructura de fiscalización y regulación de mercados en estados Unidos, incentivando un debate más orientado al perfeccionamiento de modelos y no a la búsqueda frenética - y a veces ilusoria - de los responsables de la crisis. La tradicional inclinación demócrata a aumentar los volúmenes regulatorios se puede ver, a primera vista, ponderada por la presencia de Sunstein como el próximo zar regulatorio de Obama, pues siendo un liberal declarado, Sunstein también apoyo algunas nominaciones del Presidente George W. Bush en la Corte Suprema, lo cual da muestra de su moderación. No cabe duda que las democracias consolidadas se fortalecen con la incorporación de académicos de la talla de Cass Sunstein, estableciendo con ello un interesante referente para las futuras designaciones en Chile y el resto de América Latina.

ALFREDO BULLARD EXPLAINS LAW AND ECONOMICS

Administrator — Wed, 26 Mar 2008 06:08:38 +0000

Professor of Universidad Catolica del Peru, Alfredo Bullard explains in an interesting interview the main issues of Law and Economics.

http://www.youtube.com/watch?v=mgqCiNrhnH4

AMAZING INTERVIEW TO PROF. GARY S. BECKER AND RICHARD POSNER

Administrator — Fri, 15 Feb 2008 05:59:12 +0000

Visit an amazing interview to Prof. and Nobel Prize 1992 Gary S. Becker and Prof. of Law and Economics Richard Posner about the Becker-Posner blog. Check in:

http://www.mefeedia.com/entry/replay-gary-s-becker-and-richard-posner-joint-discussion/6244626/

M&A and Antitrust Regulations

Administrator — Mon, 04 Feb 2008 19:59:24 +0000

For these days, the situation on items relating to the Free Competition has had two interesting examples, in different sides of the world. Here in the United States the controversial takeover offer by 44 billion dollars that Microsoft has done by Yahoo.com has shaken the market today and is the subject of analysis among antitrust experts and financial specialists, as the operation will be analyzed in detail by American regulators. Across the world, in Chile, the Chilean Antitrust Court ruled finally on the merger of two major retail companies as DS and Falabella, rejecting the operation. In its foundations of the decision, the Court says that “the adoption of the operation consulted, would produce a substantial and lasting decline in the conditions of competition in a market that involves very important part of the decisions of consumption of all Chileans …. harmful expected - in terms of welfare - the prices, quality and quantity of products”. It says that of Microsoft offer by Yahoo.com - with all businesses involved - is the reaction of the giant of Windows fronting the relevant undisputed position that Google now occupies in the advertising and search contents on the Internet. In both cases, these are operations called M & A (Mergers and Acquisitions) that generate concentrations of market participation and certainly in the size and influence of companies. The major index of M & A in a market means, in general, adjustments to the size of them and greater influence of the dominant players, which should aim to benefit the consumer, so that the efficiency and dynamism own market, it also added the consumer welfare, as fundamentals of a serious analysis of each operation. The work of the regulators should be technical and accurate, but that its decisions involving a disincentive to free market development. Also, the huge Internet market is very shaken by the new antitrust case will affect Microsoft and which may affect the relevance of the company that holds Windows; then, a good number of factors relating to the practice and actual functioning of this important segment could de studied. Now the American “trustbusters” will give their opinion on what may be one of the most important operations for the year in the Internet market. Both cases, one Chilean and one American, are great opportunities for the analysis of Free Competition and regulation, without a doubt, an incentive for joint study, not only for economists and lawyers, but for a general public, which increasingly demand more information, but it also has the duty to reach out to the new realities that the dynamic market structures pose for their own benefit.

VITTORIO CORBO, Chair of Chilean Central Bank

Administrator — Tue, 04 Dec 2007 16:36:58 +0000

VITTORIO CORBO, one of the most important chilean economist, highlighted in international markets, will not continue another period as a Chair of Central reserve in Chile. President Bachelet appointed JOSE DE GREGORIO, current Vice President of Central Bank. Corbo is worldwide recognized as an expert in financial theory and an important actor in the currency stability in Chile.

GARY S. BECKER IN CHILE

Administrator — Tue, 04 Dec 2007 16:30:10 +0000

Professor at University of Chicago and Nobel Prize 1992 Gary S. Becker was attending in Chile the last executive meetting ENADE 2007. Professor Becker talked about the eonomics foundations of Education as a part of the break down of the new politics on education currently in discussion in Chile. Professor Becker is a pioneer in the field of Law and Economics and one of the most important economist in the world. He taught in Chicago to many generations of chilean scholars and executives.

NEW , STEVEN LEVITT about the Economics Nobel ( New York Times, Oct. 15 2007)

Administrator — Mon, 15 Oct 2007 14:42:35 +0000

I was delighted to wake up this morning and discover that I have yet another Nobel Laureate as a colleague.
Congratulations to Roger Myerson! (And also to Eric Maskin and Leo Hurwicz, who shared the prize.)
The prize was “for having laid the foundations of mechanism design theory.” Mechanism design formalizes ways of thinking about how a social planner, manager, or parent can set up rules so that all parties involved have the incentives to act in the way that the planner/manager/parent prefers. This Nobel is not for the idea that you can design incentives this way, but rather for coming up with ingenious proofs that simplify the task of proving that, indeed, all parties have the right incentives — a task that can turn out to be awfully difficult.
In addition to being great economists (see my last post about what it means if you win the Nobel when you are young — both Maskin and Myerson are under 60 years old), they are both incredibly kind and generous people. In fact, they may challenge George Akerlof for the title of nicest people to win the Economics Nobel. I don’t know Hurwicz personally. I’m embarrassed to say I don’t

NEW INTERVIEW to President of Georgia Mikhail Saakashvili

Administrator — Sun, 07 Oct 2007 01:53:55 +0000

http://www.charlierose.com/shows/2007/09/28/2/a-conversation-with-president-of-the-republic-of-georgia-mikhail-saakashvili”>

ALAN GREENSPAN Interview, by Charlie Rose

Administrator — Wed, 26 Sep 2007 16:13:06 +0000

NEW: Former President of FED Alan Greenspan talks about his book ” The Age of Turbulence”, in Charlie Rose Broadcast.

Click on: http://www.charlierose.com/guests/alan-greenspan