Offsetting Behaviour

2 months ago | offsettingbehaviour.blogspot.com | Eric Crampton

The Initiative's Insights newsletter generally concludes with a more light-hearted column. The case that our Michael Johnston took on in it this week lent itself to lots of different approaches. This was my take on the same topic - but from a different angle. Because I tend to think about things in terms of statutory barriers to entry. And Jennifer Roback Morse lives in my head. Imagine that you lived in a small town with one pharmacy. The next town is a long drive away.

2 months ago | offsettingbehaviour.blogspot.com | Eric Crampton

The Initiative's Insights newsletter generally concludes with a more light-hearted column. The case that our Michael Johnston took on in it this week lent itself to lots of different approaches. This was my take on the same topic - but from a different angle. Because I tend to think about things in terms of statutory barriers to entry. And Jennifer Roback Morse lives in my head. Imagine that you lived in a small town with one pharmacy. The next town is a long drive away.

Nov 28, 2024 | offsettingbehaviour.blogspot.com | Eric Crampton

If you thought McDonald's was some kind of public health hazard, using processes under the Resource Management Act to try to block one from opening in Wanaka would be among the stupidest possible ways of dealing with it. The country already has food safety regulations. If you thought that (in fact delicious and fine) McDonald's food were actually toxic waste, food safety regs would address the problem across all existing 170+ outlets across the country.

Nov 10, 2024 | offsettingbehaviour.blogspot.com | Eric Crampton

I still think Rod Carr had this stuff right two decades ago when he'd argued against having deposit insurance at all, and instead making very clear that government would never bail out depositors. People can argue the toss about hard caveat emptor versus some perfect deposit insurance scheme with full risk-based pricing and whether following through with minor depositor haircuts after burning through investor equity under OBR was credible.

Nov 7, 2024 | offsettingbehaviour.blogspot.com | Eric Crampton

I still think Rod Carr had this stuff right two decades ago when he'd argued against having deposit insurance at all, and instead making very clear that government would never bail out depositors. People can argue the toss about hard caveat emptor versus some perfect deposit insurance scheme with full risk-based pricing and whether following through with minor depositor haircuts after burning through investor equity under OBR was credible.