In early May 2019, the United States announced it would deploy an aircraft carrier, B-52 strategic bombers, and a Patriot missile battery to the Gulf region, declaring it had received information that Iran intended to strike US targets or those of its allies, directly or through a proxy. The United States followed with a new round of sanctions targeting Iran’s oil industry.
The John F. Kennedy School of Government at Harvard University
This paper investigates the formation of production and trading networks in an economy with general interdependencies and complex property rights. The right to exclude,a core tenet of property, grants asset owners a form of monopoly power that influences granular economic interactions. Equilibrium networks reflect the distribution of these ownership claims. Inefficient production networks may endure in equilibrium as firms multi-source to mitigate hold-up risk. Short supply chains also reduce this risk, but may preclude the production of complex goods. A generalized Top Trading Cycles algorithm, applicable to a production economy, identifies equilibrium outcomes in the model. Such outcomes can be decentralized via a price system.
International Trade and Finance, International Affairs, Intellectual Property/Copyright, and National & provincial initiatives
Let us stipulate at the outset that President Trump is a vulgar and dishonest fraud without a principled bone in his body.
Yet history is nothing if not a tale overflowing with irony. Despite his massive shortcomings, President Trump appears intent on recalibrating America’s role in the world. Initiating a long-overdue process of aligning U.S. policy with actually existing global conditions just may prove to be his providentially anointed function.
Democrats accuse President Trump of abuse of executive power and “thinking he is a dictator.” But then, Republicans made similar charges about President Obama. They all have a point.
At least since the administration of Franklin D. Roosevelt, there has been a flow of power from civil society to government, from the states to the federal government, and from Congress to the executive branch. But a recent newspaper headline reminded me of some other headlines that tell a story.
For the past 17 years, presidents have used the 2001 Authorization for the Use of Military Force (AUMF) as a blank check to wage war whenever and wherever they please. Congress is now debating several replacement AUMFs—but these, too, pose the danger of granting the president far broader war powers than the Constitution envisioned. At a Capitol Hill Briefing, Cato’s GENE HEALY and JOHNGLASER made the case for repealing, rather than replacing, the AUMF.
Why do we pay $600 for EpiPens, a long-existing piece of technology
that contains just a dollar’s worth of medicine? Why
do hospitalized patients so frequently receive bills laden with
inflated charges that come out of the blue from out-ofnetwork
providers or that demand payment for services that weren’t delivered?
Congressional staff members play a vital role in shaping policy—they make decisions on which issues their bosses prioritize, which arguments the representatives and senators hear, and what language makes it into legislation. Cato’s popular Capitol Hill Briefings offer these staff members timely briefings on the most pressing issues facing their offices. At these events, Cato scholars and other experts update the staff on their latest scholarship and policy recommendations, critique current or upcoming legislation, and answer
Ambulances are notoriously expensive—one ride may cost more than $1,000, and insurance companies frequently refuse to cover them. In the past, patients had few alternatives to get themselves to the hospital—but in “Does Ride-Sharing Substitute for Ambulances?” (Research Briefs in Economic Policy no. 114), Leon S. Moskatel of Scripps Mercy Hospital and David J. G. Slusky of the University of Kansas demonstrate how the age of Uber and Lyft is changing that and is reducing expensive and unnecessary ambulance trips.
Presidential impeachments are vanishingly rare in American constitutional
history: in the 230 years since ratification, only three presidents
have faced serious attempts to remove them from office. And yet, as
President Donald J. Trump’s tumultuous tenure continues, it seems
increasingly plausible that we’ll see a fourth.
International Affairs, Democracy, and Constitution
Texas law SB 4 imposes jail time on local police who fail to detain anyone whom federal Immigration and Customs Enforcement (ICE) requests. Data from Travis County, Texas, show that ICE targets large numbers of U.S. citizens. From October 2005 to August 2017, 814 targets of ICE detainers in Travis County-3.3 percent of all requests-claimed U.S. citizenship and presented officers with a Social Security number (SSN). ICE subsequently canceled or declined to execute about a quarter of those detainer requests. Based on statements from ICE officials, the best explanation for not executing these detainers is that ICE targeted at least 228 U.S. citizens in the county before canceling or declining to execute those detainers. SB 4 will likely increase the detention of U.S. citizens for supposed violations of immigration law by preventing local police from releasing them.
Center on Global Energy Policy (CGEP), Columbia University
The potential for utilizing a federal carbon tax to address the risks of climate change has been discussed in U.S. policy debates on both sides of the aisle. Under a carbon tax, consumers and producers would account for the costs of climate change in their decision making. The policy would reduce greenhouse gas emissions without sacrificing the efficiency of private markets.
Energy Policy, International Affairs, and Domestic Politics
Foreign policy rarely plays a decisive role in congressional elections in the US. However, President Trump’s tendency to mix foreign policy into the domestic debate might increase its salience. Electoral success for the Democrats could both constrain and embolden the president’s international conduct.
The 2020 US presidential election could be a close call with a narrow margin of victory. Many key factors underlying Donald Trump’s 2016 electoral success are still active and might suffice to win over a very polarized electorate in an extremely ugly election.
America’s relationship with Russia was among the most controversial foreignpolicy issues of the 2016 presidential campaign, and has remained so in the Trump administration’s initial weeks. Much of the controversy has been strictly political, focused primarily on exploiting anger and suspicion toward Moscow as a weapon during the election campaign and, more recently, in confirmation hearings for President Donald Trump’s key foreign-policy and national-security nominees. That said, public discussion before and after the November election has also exposed sharp differences over U.S. policy toward Russia and the assessments of U.S. and Russian interests, objectives and values that shape Washington’s choices. This volume seeks to contribute to that debate by exploring U.S. options in pursuing President Trump’s stated intent to engage with Moscow
Trump’s decision leaves the Kurdish nationalists of the KDP defenceless and, with their patron gone, will likely cause splits among Arab forces allied with Kurdish militiamen. Regionally, it sends a message to US allies in the Gulf about the Trump’s commitment to the Iran-containment strategy.
We examine the distribution of student loan balances and repayment rates in the United States using administrative student loan data. We show that increases in credit limits and expansions in credit availability resulted in rising borrowing amounts, and that the share of borrowers holding very large balances has surged. For instance, the share of borrowers leaving school with more than $50,000 of federal student debt increased from 2 percent in 1992 to 17 percent in 2014. Consequently, a small share of borrowers now owes the majority of loan dollars in the United States. Although these large-balance borrowers have historically strong labor market outcomes and low rates of default, repayment rates have slowed significantly between 1990 and 2014 reflecting, in part, changes in the characteristics of students, the schools they attended, and the rising amounts borrowed. A decomposition analysis indicates that changes in the types of institutions attended, student demographics, default rates, and increased participation of alternative repayment plans and forbearance largely explain the decrease in student loan repayment.
Until recently, we were operating under the assumption that the liberal world order would prove sufficiently inclusive, productive and resilient to serve as a stable framework for international cooperation. But such optimism seems increasingly unwarranted as a wide host of existential challenges have materialized, including the return of geopolitics, the resurgence of autocratic leadership, the revival of economic protectionism and the rising tide of populism and nationalism.
International Political Economy and International Affairs