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71. Dismal Science: The Shortcomings of U.S. School Choice Research and How to Address Them

Author:
John Merrifield
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Pressing questions about the merits of market accountability in K-12 education have spawned a large scholarly literature. Unfortunately, much of that literature is of limited relevance, and some of it is misleading. The studies most widely cited in the United States used intense scrutiny of a few small-scale, restriction-laden U.S. programs—and a handful of larger but still restriction-laden foreign school choice expansions—to assert general conclusions about the effects of "choice," "competition," and "markets." The most intensely studied programs lack most or all of the key elements of market systems, including profit, price change, market entry, and product differentiation—factors that are normally central to any discussion of market effects. In essence, researchers have drawn conclusions about apples by studying lemons.
Topic:
Economics, Education, and Markets
Political Geography:
United States

72. The Case against Government Intervention in Energy Markets

Author:
Richard L. Gordon
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Many politicians and pundits are panicked over the existing state of the oil and gasoline markets. Disregarding past experience, these parties advocate massive intervention in those markets, which would only serve to repeat and extend previous errors. These interventionists propose solutions to nonexistent problems.
Topic:
Energy Policy, Government, and Markets
Political Geography:
United States

73. The Klein Doctrine: The Rise of Disaster Polemics

Author:
Johan Norberg
Publication Date:
05-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Naomi Klein's The Shock Doctrine ;purports to be an exposé of the ruthless nature of free-market capitalism and its chief recent exponent, Milton Friedman. Klein argues that capitalism goes hand in hand with dictatorship and brutality and that dictators and other unscrupulous political figures take advantage of "shocks"-catastrophes real or manufactured-to consolidate their power and implement unpopular market reforms. Klein cites Chile under General Augusto Pinochet, Britain under Margaret Thatcher, China during the Tiananmen Square crisis, and the ongoing war in Iraq as examples of this process.
Topic:
Democratization, Economics, and Markets
Political Geography:
China and Chile

74. Asset Bubbles and Their Consequences

Author:
Gerald P. O'Driscoll Jr.
Publication Date:
05-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
In the past, the federal government has introduced moral hazard in the banking system through deposit insurance. Banks underpriced risk because of the federal guarantee that backed deposits. After banking crises in the 1980s and 1990s, deposit insurance was put on a sound basis and that source of moral hazard was mitigated. In its place, monetary policy has become a source of moral hazard. In acting to counter the economic effects of declining asset prices, the Federal Reserve has come to be viewed as underwriting risky investments. Policy pronouncements by senior Fed officials have reinforced that perception. These actions and pronouncements are mutually reinforcing and destructive to the operation of financial markets. The current financial crisis began in the subprime housing market and then spread throughout credit markets. The new Fed policy fueled the housing boom. Refusing to accept responsibility for the housing bubble, the Fed's recent actions will likely fuel a new asset bubble. The cumulative effects of recent monetary policy undermine the case for free markets.
Topic:
Economics, Government, and Markets
Political Geography:
United States

75. FASB: Making Financial Statements Mysterious

Author:
T.J. Rodgers
Publication Date:
08-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Since the passage of the Sarbanes-Oxley Act in 2002, the Financial Accounting Standards Board has passed rules that it promises will make corporate accounting more transparent. In fact, its revised Generally Accepted Accounting Principles have made it difficult for investors — or even CEOs — to understand a company's financial report.
Topic:
Economics, Government, and Markets
Political Geography:
United States

76. Does Barack Obama Support Socialized Medicine?

Author:
Michael F. Cannon
Publication Date:
10-2008
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Democratic presidential nominee Sen. Barack Obama (IL) has proposed an ambitious plan to restructure America's health care sector. Rather than engage in a detailed critique of Obama's health care plan, many critics prefer to label it "socialized medicine." Is that a fair description of the Obama plan and similar plans? Over the past year, prominent media outlets and respectable think tanks have investigated that question and come to a unanimous answer: no.
Topic:
Economics, Government, Health, and Markets
Political Geography:
United States

77. In Pursuit of Happiness Research: Is It Reliable? What Does It Imply for Policy?

Author:
Will Wilkinson
Publication Date:
04-2007
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
“Happiness research” studies the correlates of subjective well-being, generally through survey methods. A number of psychologists and social scientists have drawn upon this work recently to argue that the American model of relatively limited government and a dynamic market economy corrodes happiness, whereas Western European and Scandinavian-style social democracies pro- mote it. This paper argues that happiness research in fact poses no threat to the relatively libertarian ideals embodied in the U.S. socioeconomic system. Happiness research is seriously hampered by confusion and disagreement about the definition of its subject as well as the limitations inherent in current measurement techniques. In its present state happiness research cannot be relied on as an authoritative source for empirical information about happiness, which, in any case, is not a simple empirical phenomenon but a cultural and historical moving target. Yet, even if we accept the data of happiness research at face value, few of the alleged redistributive policy implications actually follow from the evidence. The data show that neither higher rates of government redistribution nor lower levels of income inequality make us happier, whereas high levels of economic freedom and high average incomes are among the strongest correlates of subjective well- being. Even if we table the damning charges of questionable science and bad moral philosophy, the American model still comes off a glowing success in terms of happiness.
Topic:
Economics, Markets, and Political Economy
Political Geography:
United States, America, and Europe

78. Cato Education Market Index Full Technical Report

Author:
Andrew J. Coulson
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The index presented in this report attempts to measure how closely existing school systems resemble free markets and rates education policy proposals on how conducive they are to the rise of competitive marketplaces. We define an education market as a system that provides the freedom for producers and consumers to voluntarily associate with one another, as well as the incentives that encourage families to be diligent consumers and educators to innovate, control costs, and expand their services. It is a system in which schools can offer instruction in any subject, using any method, for which families are willing to pay.
Topic:
Development, Economics, Education, and Markets

79. The Cato Education Market Index

Author:
Andrew J. Coulson
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The index presented in this report attempts to measure how closely existing school systems resemble free markets and rates education policy proposals on how conducive they are to the rise of competitive marketplaces. We define an education market as a system that provides the freedom for producers and consumers to voluntarily associate with one another, as well as the incentives that encourage families to be diligent consumers and educators to innovate, control costs, and expand their services. It is a system in which schools can offer instruction in any subject, using any method, for which families are willing to pay.
Topic:
Development, Economics, Education, and Markets