Why Government Fails So Often: And How It Can Do Better (76 page)

69
. James Q. Wilson, “Against the Legalization of Drugs,”
Commentary
89 (1990): 21–28.

70
. Eduardo Porter, “Numbers Tell of Failure in Drug War,”
New York Times
, July 4, 2012.

71
. Randal C. Archibold, Damien Cave, & Ginger Thompson, “Mexico’s Curbs on U.S. Role in Drug Fight Spark Friction,”
New York Times
, May 1, 2013.

72
. John Tierney, “For Lesser Crimes, Rethinking Life behind Bars,”
New York Times
, December 12, 2012.

73
.
Kleiman et al.,
Drugs and Drug Policy
, 198–206. See also Bill Keller, “How to Legalize Pot,”
New York Times
, May 19, 2013.

74
. Ana Campoy, “The Pot Business Suffers Growing Pains,”
Wall Street Journal
, April 20, 2013.

75
. Oren Bar-Gill,
Seduction by Contract: Law, Economics, and Psychology in Consumer Markets
(2013).

76
. Omri Ben-Shahar & Carl E. Schneider,
More Than You Wanted to Know: The Failure of Mandated Disclosures
(2014); Clifford Winston, “The Efficacy of Information Policy: A Review of Archon Fung, Mary Graham, and David Weil’s
Full Disclosure: The Perils and Promises of Transparency
,”
Journal of Economic Literature
46 (2008): 704–17.

77
. Frank Partnoy & Jesse Eisinger, “What’s inside America’s Banks?”
Atlantic
, January–February 2013, 64–65.

78
. Winston,
Government Failure versus Market Failure
, 27–59.

79
. Ibid., 39–41.

80
. Daniel Ho, “Regulatory Fudge: The Promise of Targeted Transparency and the Practice of Restaurant Grading,”
Yale Law Journal
122 (2012): 574–688.

81
. Christine Jolls, “Product Warnings, Debiasing, and Free Speech: The Case of Tobacco Regulation,”
Journal of Institutional & Theoretical Economics
169 (2013): 53–78.

82
. Steven M. Davidoff, “A Simple Solution That Made a Hard Problem More Difficult,”
New York Times
, August 28, 2013.

83
. Raj Chetty, John N. Friedman, Soren Leth-Petersen, Torben Heien Nielsen, & Tore Olsen,
Subsidies vs. Nudges: Which Policies Increase Saving the Most?”
Center for Retirement Research at Boston College 13–3, March 2013.

84
. Annie Lowrey, “F.H.A. Hopes to Avoid a Bailout by Treasury,”
New York Times
, November 17, 2012.

85
. Gretchen Morgenson, “In an F.H.A. Checkup, a Startling Number,”
New York Times
, December 2, 2012.

86
. Gretchen Morgenson, “Study Shows a Pattern of Risky Loans by F.H.A.,”
New York Times
, December 13, 2012.

87
. Edward J. Pinto, “The Next Housing Bailout? Big Trouble Brewing at FHA,”
Atlantic
, November 16, 2012,
http://www.theatlantic.com/business/archive/2012/11/the-next-housing-bailout-big-trouble-brewing-at-the-fha/265359/
.

88
. Morgenson, “In an F.H.A. Checkup, a Startling Number.”

89
. National Center for Education Statistics,
2011–12 National Postsecondary Student Aid Study (NPSAS:12): Student Financial Aid Estimates for 2011–12
(August 2013),
http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2013165
.

90
. Rohit Chopra, “Student Debt Swells, Federal Loans Now Top a Trillion,”
http://www.consumerfinance.gov/speeches/student-debt-swells-federal-loans-now-top-a-trillion/
.

91
. Eduardo Porter, “Dropping Out of College, and Paying the Price,”
New York Times
, June 26, 2013.

92
. Deborah Lucas & Damien Moore,
Costs and Policy Options for Federal Student Loan Programs
, Congressional Budget Office publication 4101 (March 2010),
http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/110xx/doc11043/03–25-studentloans.pdf
, 13–14.

93
. U.S. Government Accountability Office,
Student Aid and Postsecondary Tax Preferences: Limited Research Exists on Effectiveness of Tools to Assist Students and Families Through Title IV Student Aid and Tax Preferences
, GAO-05–684 (2005),
http://www.gao.gov/assets/250/247314.pdf
, 29, n40 (citing Bridget Terry Long,
The Impact of Federal Tax Credits for Higher Education Expenses
, National Bureau of Economic Research Working Paper 9553 (2003).

94
.
Andrew Martin, “Well-Off Will Benefit Most from Change to Student Debt Relief Plan, Study Says,”
New York Times
, October 16, 2012 (in Jason Delisle & Alex Holt,
Safety Net or Windfall?: Examining Changes to Income-Based Repayment for Federal Student Loans
, [2012],
http://edmoney.newamerica.net/sites/newamerica.net/files/policydocs/NAF_Income_Based_Repayment.pdf
).

95
. Adeshina Emmanuel,
Private Sector Role Is at Heart of Campaigns’ Split on College Costs
,
New York Times
, September 8, 2012.

96
. Josh Mitchell, “Student-Aid Scams Targeted by Schools, Government,”
Wall Street Journal
, June 24, 2013.

97
. “The Rolling Student Loan Bailout,”
Wall Street Journal
, August 10, 2013.

98
. “How Student Debt Tripled in 8 Years, and Why It’s Becoming a Growing Economic Problem,”
http://www.businessinsider.com/ny-fed-studentloans-presentation-2013–2
.

99
. Tamar Lewin, “Education Department Report Shows More Borrowers Defaulting on Student Loans,”
New York Times
, September 29, 2012.

100
. Andrew Martin, “Debt Collectors Cashing In on Student Loan Roundup,”
New York
Times
, September 9, 2012.

101
. Chopra, “Student Debt Swells.”

102
. Mitchell, “Student-Aid Scams” (chart but without more recent data cited by Martin).

103
. Ruth Simon, “StudentLoan Load Kills Startup Dreams,”
Wall Street Journal
, August 14, 2013.

104
. Ruth Simon & Rachel Louise Ensign, “Risky Student Debt Is Starting to Sour,”
Wall
Street Journal
, January 31, 2013.

105
. Josh Mitchell, “Many Can’t Pay Student Loans,”
Wall Street Journal
, August 6, 2013.

106
. Jessica Silver-Greenberg & Catherine Rampell, “Sallie Mae Will Split Old Loans from New,”
New York Times
, May 30, 2013.

107
. Glenn Kessler, “Elizabeth Warren’s Claim That the U.S Earns $51 Billion in Profits on Student Loans,”
Washington Post
, July 11, 2013.

108
. Ibid.

109
. David Deming, Claudia Goldin, & Lawrence Katz,
The For-Profit Postsecondary School
Sector: Nimble Critters or Agile Predators
, National Bureau of Economic Research Working Paper 17710 (2011).

110
. Al Yoon, “Investors Say No to Sallie Mae Bond Deal,”
Wall Street Journal
, April 26, 2013.

111
. Silver-Greenberg & Rampell, “Sallie Mae Will Split Old Loans from New.”

112
. U.S. Government Accountability Office,
Student Aid and Postsecondary Tax Preference
, 31.

113
. Andrew G. Biggs, “The Truth about College Aid: It’s Corporate Welfare,” May 21, 2012,
http://www.aei.org/article/education/higher-education/costs/the-truth-about-college-aid-its-corporate-welfare/
.

114
. Benjamin Ginsberg,
The Fall of the Faculty: The Rise of the All-Administrative University and Why It Matters
(2011), 26.

115
. Lucas & Moore,
Costs and Policy Options for Federal Student Loan Programs
, 13.

116
. Porter, “Dropping Out of College, and Paying the Price.”

117
. Ruth Simon & Rob Barry, “A Degree Drawn in Red Ink,”
Wall Street Journal
, February 19, 2013.

118
. Consumer Financial Protection Bureau,
Private Student Loans
(2012),
http://files.consumerfinance.gov/f/201207_cfpb_Reports_Private-Student-Loans.pdf
.

119
. Simon, “StudentLoan Load Kills Startup Dreams”; Mitchell, “Many Can’t Pay Student Loans.”

120
. U.S. Government Accountability Office,
Student Aid and Tax Benefits: Better Research and Guidance Will Facilitate Comparison of Effectiveness and Student Use
, GAO-02–751 (2002),
http://www.gao.gov/assets/240/235411.pdf
, 5, 26–30; U.S. Government
Accountability Office,
Student Aid and Postsecondary Tax Preferences
, 27; U.S. Government Accountability Office,
Higher Education
, 33 (adding completion).

121
. U.S. Government Accountability Office,
Student Aid and Postsecondary Tax Preferences
, 4.

122
. U.S. Government Accountability Office,
Higher Education
, 29–31; U.S. Government Accountability Office,
Student Aid and Postsecondary Tax Preferences
, 20.

123
. U.S. Government Accountability Office,
Student Aid and Postsecondary Tax Preferences
, 28.

124
. U.S. Government Accountability Office,
Higher Education
, 33; see also U.S. Government Accountability Office,
Student Aid and Postsecondary Tax Preferences
, 28.

125
. U.S. Government Accountability Office, GAO-12–560,
Higher Education
, 33.

126
. Ibid., 39.

127
. James J. Heckman & Flavio Cunha, “The Technology of Skill Formation,”
American
Economic Review
97 (2007), 31–47.

128
. Tom Petri,
Petri Introduces Student Loan Bill
, press release, December 17, 2012,
http://petri.house.gov/pressrelease/petri-introduces-studentloan-bill
; Andrew Kelly, “A Student Debt Cure Worse Than the Disease,”
The American
, December 18, 2012,
http://www.american.com/archive/2012/december/a-student-debt-cure-worse-than-the-disease
.

129
. “Long History of U.S. Energy Subsidies,”
Chemical & Engineering News
89 (2011): 30–31.

130
. “The Energy Subsidy Tally,”
Wall Street Journal
, August 18, 2012.

131
. Bjorn Lomborg, “Green Energy Is the Real Subsidy Hog,”
Wall Street Journal
, November 12, 2013.

132
. See, generally, Daniel Yergin,
The Quest: Energy, Security, and the Remaking of the
Modern World
(2011).

133
. Ted Gayer & W. Kip Viscusi, “Overriding Consumer Preferences with Energy Regulations,”
Journal of Regulatory Economics
43 (2013): 248–64.

134
. Matthew L. Wald, “Court Overturns E.P.A.’s Biofuels rule, Saying It Overestimated Production,”
New York Times
, January 26, 2013.

135
. Carol D. Leonnig, “Chu Takes Responsibility for a Loan Deal That Put More Taxpayer Money at Risk in Solyndra,”
Washington Post
, September 29, 2011.

136
. Keith Bradsher, “Chinese Solar Panel Giant Is Tainted by Bankruptcy,”
New York
Times
, March 21, 2013.

137
. Bill Vlasic, “Breaking Down on the Road to Electric Cars,”
New York Times
, April 24, 2013; Mike Ramsey, “Car Battery Start-Ups Fizzle,”
Wall Street Journal
, May 31, 2012; Isabel Kershner, “Israeli Venture Meant to Serve Electric Cars Ending Its Run,”
New York Times
, May 27, 2013.

138
. “The Other Government Motors,”
Wall Street Journal
, May 24, 2013.

139
. “The Price of Green Virtue,”
Wall Street Journal
, July 7, 2012.

140
. Wolfram Schlenker, “The Effect of Climate Change and Biofuel Mandates on Agricultural Output and Food Prices,”
NBER Reporter
2013 (2013): 16.

141
. Elizabeth Rosenthal, “As Biofuel Demand Grows, So Do Guatemala’s Hunger Pangs,”
New York Times
, January 6, 2012. Eurpean countries are also adopting such mandates. On the opposition of world food agencies to ethanol requirements, see “Ethanol vs. the World,”
Wall Street Journal
, August 11, 2012.

142
. Matthew L. Wald, “Ethanol Surplus May Lift Gas Prices,”
New York Times
, March 16, 2013.