@article{posner2013benefit-cost,
author = {Posner, Eric and Weyl, E. Glen and Weyl, E. Glen},
title = {Benefit-Cost Analysis for Financial Regulation},
year = {2013},
month = {May},
abstract = {Calls for benefit-cost analysis in rule-making, based on the Dodd-Frank Wall Street Reform Act, have revealed a paucity of work on allocative efficiency in financial markets. We propose three principles to help fill this gap. First, we highlight the need for quantifying the statistical cost of a crisis to trade off the risk of a crisis against loss of growth during good times. Second, we propose a framework quantifying the social value of price discovery, and highlighting which arbitrages are over- and under-supplied from a social perspective. Finally, we distinguish between insurance benefits and gambling-facilitation harms of market completion.},
publisher = {American Economic Association},
url = {http://approjects.co.za/?big=en-us/research/publication/benefit-cost-analysis-for-financial-regulation/},
journal = {American Economic Review Papers and Proceedings},
edition = {American Economic Review Papers and Proceedings},
}