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Shannon Dailey

Articles by Shannon Dailey

New Research on Trade, Monetary Policy, and Voting in the Midst of COVID-19

4 days ago

A Pivot to a Services Trade Agenda Can Help Economic Growth
Christine McDaniel | Policy Brief
The coronavirus pandemic has restricted people’s physical movement, but not the exchange of information, knowledge, and other digitally delivered services. The post-coronavirus future will likely continue to include an ever-expanding range of associated business, professional, and technical services that firms and workers deliver digitally.
In her recent policy brief, Christine McDaniel explains how policymakers need to expand their focus beyond goods trade to include a trade agenda that embraces US services in the world economy. She explores trade data, the importance of services for economic growth, key restrictions and how to evade them, and solutions policymakers can pursue to help prevent a

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New Research on the Economic Effects of COVID-19

18 days ago

Grand Innovation Prizes to Address Pandemics: A Primer
Alexander Tabarrok | Policy Brief
The world needs rapid innovation to address the myriad consequences of the COVID-19 pandemic. The sudden onset of the pandemic and its immense human and economic costs suggests that ordinary processes are not enough. The world also needs innovation and incentives to respond quickly and effectively. Prizes are an important tool for this purpose.
When we are uncertain about the best ways to combat the COVID-19 pandemic and want to draw on as many people and on as wide a domain of knowledge as possible, prizes are an important weapon in our arsenal.
COVID-19 Pandemic, Direct Cash Transfers, and the Federal Reserve
David Beckworth | Policy Brief
The economic fallout from the pandemic of COVID-19 is likely

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New Research on Upzoning, the Current Economic Situation, and Aviation Safety

March 6, 2020

Allowing Triplexes Would Lower Rent in Maryland
Salim Furth | State Testimony
When land becomes expensive, it’s a clue that we should each use a little less of it. But how does this work practically? Senior Research Fellow Salim Furth explores this through the idea of upzoning currently being considered in Maryland.
Upzoning allows for more types of housing that can suit more people — particularly those who struggle to buy or rent homes. In Maryland, such a policy can change the rules in favor of anyone who lives—or wants to live—within a mile of a metro, commuter, or light rail station. It would also impact residential lots in neighborhoods with large concentrations of jobs and neighborhoods with especially high incomes. In those locations, the bill would allow triplexes—buildings with

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New Research on Currency Manipulation and Medical Drones

February 21, 2020

Currency Manipulation: Reframing the Debate and Currency Manipulation, Saving Manipulation, and the Current Account Balance
Scott Sumner | Working Paper
Currency manipulation has become an increasingly important flashpoint in negotiations involving international trade and finance. Unfortunately, the issue is not well understood, nor is it clear how the term “currency manipulation” should even be defined. In his new working paper, Scott Sumner reframes the debate by exploring possible new perspectives on currency manipulation that may turn heads, explaining the underlying economic concepts therein, and taking a close look at countries which deserve special scrutiny.
Medical Drones in the United States and a Survey of Technical and Policy Challenges
Robert Graboyes and Brent Skorup | Policy

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Research on Interstate Compact, Regulatory Accumulation in Arizona, and the Likelihood of an Authoritarian Crackdown in Hong Kong

February 14, 2020

An Interstate Compact to Phase Out Company Giveaways
Michael D. Farren | State Testimony
Academic research shows that economic development subsidies generally don’t achieve their stated goals. Despite these economic problems, political-economic analysis implies that governments continue to pursue economic development subsidies because they appear to be beneficial for the policymakers who support them. In his recent testimony before the Maryland General Assembly, research fellow Michael D. Farren illustrates why these subsidies remain a problem and how an interstate compact offers an opportunity for a cooperative solution. 
Prompting a Regulatory Reset in Arizona
James Broughel | State Testimony
In his testimony before the Arizona State Senate, senior research fellow James Broughel analyzes

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New Research on Occupational Licensing, Data Privacy, and the Wealth Tax Proposal

February 10, 2020

Ohio Occupational Licensure and Universal Recognition
Matthew D. Mitchell | State Testimony
In his recent testimony before the Ohio Senate, senior research fellow Matthew D. Mitchell discusses the substantial barriers to employment posed by occupational licensing. Occupational licensing is a substantial barrier to employment, imposing a cost to the economy and a disparate burden on certain vulnerable populations. Licensing does little to enhance either consumer safety or the quality of services while increasing prices for consumers. Mitchell asserts that policymakers must be able to cast conspicuous votes in the general interest while special interest power must be limited.
Pennsylvania and the Future of Data Privacy
Jennifer Huddleston | State Testimony
In her recent testimony to the

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New Research on Red Tape, Regulatory Reform, Subsidies, and the Future for US-UK Trade

February 3, 2020

Cutting Red Tape to Cut the Deficit
James Broughel and Jack Salmon | Policy Brief
In their recent policy brief, senior research fellow James Broughel and research assistant Jack Salmon outline a pragmatic roadmap for reducing the budget deficit by cutting red tape. Several regulatory reforms could begin to improve the fiscal position of the United States. 
They detail the effects regulations have on the government’s budget directly, suggest placing limits on the amount of regulation, and recommend mandating sunset provisions for all new regulations. Overall, regulatory reform is one option in increasing economic growth, and an important one at that. 
Nebraska Could Be a Leader in Regulatory Reporting
James Broughel | State Testimony
In his recent testimony before the Nebraska Legislature,

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Research on Housing Affordability, Warrants for Electronic Information, and Loans

January 27, 2020

Allowing Accessory Dwelling Units Would Contribute to Housing Affordability in Virginia and Preempting Bans on Duplexes Can Improve Housing Affordability through Property Rights
Emily Hamilton | State Testimony
In both her state testimonies on HB 151, research fellow Emily Hamilton covers the problem of housing affordability in Virginia and the role that local land use regulations play in constraining housing supply and causing high and rising house prices. She explores in-depth solutions that would allow the housing market to better respond to increasing demand and improve affordability without additional subsidies. 
Land use regulations limit property owners’ right to build housing and drive up housing costs. Allowing accessory dwelling units and duplexes to be built where only

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New Research on Occupational Licensing, Data Privacy, and Medical Drones

January 21, 2020

Occupational Licensure Will Not Ensure the Provision of Capable and Competent Music Therapy Services
Jared Rhoads | State Testimony
In a recent state testimony, Jared Rhoads addressed occupational licensing for music therapists in New Hampshire. The typical argument put forth in favor of occupational licensure is that bringing the activity under the aegis of the state is necessary to ensure the health and safety of the public. Without such oversight, the argument goes, the public would be exposed to incompetent practitioners and the alleged harms that go with that exposure.
If New Hampshire passes HB 1286-FN, the most significant effect will be to create a regulatory barrier to new individuals who wish to help people through music therapy. By restricting licensure, this bill would incur

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New Research on FDA Reforms, California Housing Policies, Housing Affordability and Regulatory Reform, and Michigan CON Laws

January 13, 2020

FDA Drug Review Reforms
Anna Chorniy, Emma Blair, and James Bailey | Policy Brief
In their new policy brief, Anna Chorniy, Emma Blair, and James Bailey explore how various FDA drug review reforms could benefit the public. While the FDA’s role in assessing the safety and efficacy of new drugs is an important one, the authors explain how its lengthy review process costs patient lives.
The authors propose two reforms to the current inefficient process: post-launch monitoring and improved transparency, which could reduce time costs and still maintain a high standard for drug efficacy and safety.
Post-launch monitoring would allow the FDA to continue to monitor safety after approving new drugs. Reducing the review time before sending drugs to make would allow people to receive potentially

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The 12 Economists of Christmas: Ludwig von Mises

January 3, 2020

The season around Hanukkah, Christmas, and New Year’s Day is often seen as a time to put aside the hardships of everyday life and indulge in fun and good cheer. But how and why people celebrate these holidays is often different from person to person. Indeed, one reason people look forward to the holidays is that they can celebrate them in their own way.
Today’s economist of Christmas, Ludwig von Mises, is one of the founders of the Austrian school of economics. Mises’s writings on economics helped to shine a light on the dynamics of human action that underlie the political economy. He drew from his training and unique personal history to show how false economic assumptions about human behavior can have disastrous results for society.
Mises was born in 1881 in what is today part of Ukraine

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The 12 Economists of Christmas: Henry Hazlitt

December 31, 2019

Christmas might be the most wonderful time of the year, but soon after it’s over, most Americans must come to grips with a less joyous reality: tax season. Even before tax time arrives, the reality of high rates of taxation can dampen people’s enjoyment of the holidays, since it reduces the amount of disposable income they had hoped to have available for gift-giving, entertaining, and other holiday traditions.
While he did not explicitly address the effect of taxes on holiday cheer, economic journalist Henry Hazlitt understood this phenomenon well and wrote about it in his famous, best-selling book Economics in One Lesson. In the book, Hazlitt showed how taxes inhibit social mobility and stunt overall economic growth.
Hazlitt argued that taxes discourage economic and social mobility

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A Christmas Carol: Do-Gooders in Dickensian Times

December 20, 2019

Outside of the gospels, A Christmas Carol is probably the most famous Christmas story on earth. Dickens not only wrote a wildly imaginative story filled with wonderful characters, but he infused in it a plea for tolerance and generosity.
Not surprisingly, when most people think of this timeless novella, they recall Charles Dickens’s reflections on Christmas spirit and the true meaning of the holiday. But this story can shed light on important economic principles as well.
Purportedly written in a frenzied six weeks, A Christmas Carol was Dickens’s emotional response to the treatment of the poor. When reading this book (or almost anything by Dickens for that matter), the dismal socioeconomic landscape of England is vividly depicted. Indeed, in Dickens’s portrayals of the poor, particularly

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Research on Government-Subsidized Health Insurance, Anti-Aid Provisions, Occupational Licensing in West Virginia, and Higher Education's Future in the Labor Market

December 16, 2019

Reforming Government Subsidies to Private Health Insurance
Bradley Herring and Erin Trish | Research Paper
Because health benefits received from an employer do not currently have taxable income status, certain Americans with employment-based insurance enjoy coverage that is more generous than it otherwise would be. As a result, overall healthcare spending increases as people overconsume low-value medical care from these overly generous plans.
Bradley Herring and Erin Trish suggest that reforming how the government subsidizes private health insurance could prompt employers to switch to health plans that still satisfy the needs of their employees without going overboard.
The effects of these plans are distorted, one example being that the current tax exclusion favors older, sicker people,

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New Research on Delivery System Innovation and Medicaid Expansion

December 2, 2019

Delivery System Innovation Is the Key to Better Healthcare
Robert Graboyes | Testimony
Mercatus scholar Robert Graboyes recently testified before the Rural and Underserved Communities Health Task Force to discuss possible solutions and policy prescriptions to end the zero-sum game of healthcare policy. He suggests less emphasis on payment models and more focus on the delivery of care, which is more likely to increase quality of healthcare. 
He suggests a larger increase of resources by removing barriers and restrictions in healthcare across the country. The people most impacted by low quality healthcare services are those living in rural or underserved areas, and a fancy new insurance card won’t do half as much for those people as delivery system reforms would, and Graboyes suggests a

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New Research on Quantifying Regulation, Insider Trading Reform, and Regulatory Accumulation

November 18, 2019

Quantifying Regulation in US States
James Broughel, Patrick McLaughlin, Michael Kotrous | Data Visualization
To gain a better understanding of the reach of state-level regulation in the United States, the Mercatus Center at George Mason University launched the State RegData project and has gathered and analyzed the regulations of 46 states plus the District of Columbia. (Unfortunately, the regulatory codes of Arkansas, Hawaii, New Jersey, and Vermont were not able to be analyzed owing to data limitations.) Mercatus researchers then used text analysis and machine learning algorithms to quantify how many words and regulatory restrictions each state’s regulations contain as well as to estimate which sectors and industries of the economy those regulations are likely to affect. As in all

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New Research on Protectionism, CON Laws in Alaska and Florida, and FedNow

November 12, 2019

New Protectionism: Still Protectionism and Bad Economics
Veronique de Rugy | Policy Brief
Senior research fellow Veronique de Rugy’s latest research explores the era of “new protectionism,” exposing unfounded trade fears that have resulted in misguided policy prescriptions. She points to lessons from the past that should guide policy for the future, including examples from the US as well as the recent booming economies of East Asian countries. A misunderstanding of history and economics has created policies hostile to free trade. Putting so-called “fair trade” on a pedestal neglects the fallacies of  this approach and overlooks the many benefits of embracing comparative advantage. De Rugy points out the problems with tariffs, subsidies and quotas and concludes that historical trends show

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New Research on Import Restrictions and V2I Technology

November 4, 2019

Executive Incentives, Import Restrictions, and Competition
Brian Blank | Working Paper
In his new analysis on import restrictions, Brian Blank writes that tariffs have unexpected beneficiaries. Corporations and their top executives stand to benefit from import restrictions moreso than the domestic businesses and workers for which they are justified. Blank expounds specific import restrictions, like antidumping duties and countervailing duties, and shows the unintended consequences of import duties. 
Smart Cities, Dumb Infrastructure
Korok Ray and Brent Skorup | Working Paper
Autonomous vehicles are now shifting from a technological pipe dream to a realistic possibility, but US roadways are not ready to accommodate them. Korok Ray and Brent Skorup write that the US currently lacks the

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New Research on Regulation in Nebraska, the Ex-Im Bank, Rural Health, and Privacy in Technology

October 28, 2019

Cutting Red Tape in Nebraska
James Broughel | Testimony
In the realm of government oversight, some cases may call for regulation, but regulatory accumulation and introducing one regulation after another can have some serious consequences. Before sudden policy changes, regulators should prioritize quantifying regulation in order to get answers on the effects of regulatory policy. Specific reforms mentioned in this testimony are red tape reduction efforts, regulatory reset, and economic analysis requirements, innovative measures which deserve more emphasis. Examining Nebraska shows that they are one of the most well-positioned states to adopt these reforms. 
Comments on the Ex-Im Bank’s Proposed Additionality Criteria
Veronique de Rugy | Public Comments
De Rugy adds new considerations to her

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New Research on Inclusionary Zoning and the Need for Humility in Policymaking

September 23, 2019

Inclusionary Zoning and Housing Market Outcomes
Emily Hamilton | Mercatus Research
Mercatus research fellow Emily Hamilton’s new research paper explores the spheres of exclusionary and inclusionary zoning. Exclusionary zoning gives value to inclusionary zoning density bonuses. Without an underlying regime of exclu­sionary zoning, inclusionary zoning would be a clear tax on new housing construction, so inclusionary zoning can­not alleviate the underlying cause of supply constraints and housing unaffordability. Evidence indicates that inclusionary zoning makes housing less affordable for those not lucky enough to get a subsidized unit.
The Need for Humility in Policymaking
Stefanie Haeffele and Anne Hobson | Book
Regulations impact a wide array of market and social activities that influence

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