Bloomberg: Restored Competition Will Lessen U.S. Inequality, by Luigi Zingales, May 31, 2012
The U.S. middle class is squeezed by the rising costs of college education and health care, and an economy that increasingly rewards only superstars. Fixing t… more »
Bloomberg: How Political Clout Made Banks Too Big to Fail, by Luigi Zingales, May 30, 2012The U.S. has historically kept the financial sector in check through a combination of sound principles and serendipitous decisions. But as the financial system… more »
Bloomberg: End Double Mandate to Save Fed’s Independence, by Luigi Zingales, April 6, 2012Here is an excerpt:..."The first step would be the elimination of the double mandate. Unlike the European Central Bank, which is in charge only of price s… more »
Luigi Zingales (U. of Chicago) and Roberto Perotti (Bocconi) state in a Bloomberg article, that the latest effort by European policy makers to contain the debt crisis offers only temporary relief for the euro area. They believe that the currently propose… more »
Project Syndicate: The Perverse Politics of Financial Crisis, by Luigi Zingales, July 25, 2011In trying to understand the pattern and timing of government interventions during a financial crisis, we should probably conclude that, to paraphrase the Fr… more »
For our growing new visitor base we give you the hint that we have in our Econ section a great search index related to personalities and economic opinion leaders (mainly economists). If you click on the names you get to related posts on MarketObservation… more »
In times of tremendous global imbalances, high volatility and power shifts we might need less testosterone in investment decision bodies.......
Gender Differences in Financial Risk Aversion and Career Choices are Affected by Testosterone, Paola Sapien… more »
Good article of L. Zingales about the impact of corrupt money managers on e.g. the regulatory environment. He explains that few corrupt traders can have a highly negative impact on a whole industry, where most players might act correctly:Project Synd… more »
Bloomberg BusinessWeek: Credit Suisse to Test Appetite for CoCo Bonds With Dollar Sale, Feb. 14, 2011Credit Suisse Group AG’s sale of contingent convertible bonds, or CoCos, will be the first time new demand for the securities has been tested by a pu… more »
Once more great insights by Luigi Zingales:
Project Syndicate: Europe’s Financial Alchemy, by Luigi Zingales, Dec. 23, 2010
Are politicians the better financial engineers that the bankers? Luigi Zingales does not think so:
"After the sub-prime… more »
How to Improve the Financial-Reform LawA brief proposal to protect the system—without stifling innovation23 November 2010Now that the Dodd-Frank financial-reform bill has become law, the real battle begins. Despite the law’s 2,000 pages—or po… more »
Who Blows the Whistle on Corporate Fraud?
Alexander Dyck, Adair Morse, Luigi Zingales, NBER Working Paper No. 12882, Feb. 20017
Paper abstract:
"What external control mechanisms are most effective in detecting corporate fraud? To address this… more »
Moral and Social Constraints to Strategic Default on Mortgages, Luigi Guiso European University Institute, EIEF, & CEPR Paola Sapienza Northwestern University, NBER, & CEPR Luigi Zingales University of Chicago, NBER, & CEPR
Paper Abstract:… more »
City Journal: Stop Subsidizing the Street by Luigi Zingales
The word for “crisis” in Chinese, weiji, is written with two characters: one (wei) means danger; the other (ji) means opportunity. That’s because every crisis challenges the status quo and in… more »
Luigi Zingales lately published an article on RGE Monitor about the future of securities regulation. He proposes major reforms which aim at (1) Empowering institutional investors in corporate boards, (2) protecting unsophisticated individuals with regard… more »
Recommended reading:
VOX: Financial Crisis Debate: Financial rescue and regulation, Moderator: Luigi Zingales
SUBJECTS:
The IMF, the U.S. Subprime Crisis, and Global Financial Governance
Government guarantees and the crisis: Part cure, part c… more »
The new article of Luigi Zingales on VOX is too important not to be posted here. He suggests to penalize who invested poorly and to help provide loans to businesses in need. Sounds like a reasonable thing! Doesn't it?
VOX: Yes we can, Mr Geithner,
L… more »
Paulson’s Gift, Pietro Veronesi, University of Chicago, NBER & CEPR and Luigi Zingales,
University of Chicago, NBER & CEPR, November 5, 2008
Paper Abstract:
"We calculate the costs and benefits of the largest ever U.S. Government interve… more »
The debate among economist of how to spend the US$ 700 billion is still hot. Chicago Professor Luigi Zingales was a critic of Treasury Secretary Paulson's original bail out plan.
He comes up with an idea for a "Plan B" which is really worth to think… more »
Nouriel Roubinis views on the current state of the bail out negotiations:
The Treasury plan (even in its current version agreed with Congress) is very poorly conceived and does not contain many of the key elements of a sound and efficient and fair… more »