You are browsing the archive for 2014 September 03.

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Math Gone Mad: Regulatory Risk Modeling by the Federal Reserve

September 3, 2014 in Economics

The U.S. financial system faces a major, growing, and much under-appreciated threat from the Federal Reserve’s risk modeling agenda. In a new study, finance professor Kevin Dowd looks at the weaknesses and problems with the Fed’s regulatory stress tests. According to Dowd, while these tests were intended to make the financial system safe, they have instead created the potential for a new systemic financial crisis.

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Source: CATO HEADLINES

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Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts

September 3, 2014 in Economics

An essential input in the design of housing policy is a rigorous understanding of whether and how much the attributes and actions of neighbors affect surrounding people and properties. While the relevance of such spillovers appears intuitive, credibly identifying the existence of these spillovers and quantifying their magnitude poses a significant empirical challenge. In new research, David H. Autor, Christopher J. Palmer and Parag A. Pathak assess the importance of housing market spillovers empirically by using the end of rent-control as a looking glass into the workings of the Cambridge, Massachusetts housing market.

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Source: CATO HEADLINES