Good policies for bad governments: behavioral political economy

Politicians and policymakers are prone to the same biases as private citizens. Even if politicians are rational, little suggests that they have altruistic interests. Such concerns lead us to be wary of proposals that rely on benign governments to implement interventionist policies that "protect us from ourselves." The authors recommend paternalism that recognizes both the promise and threat of activist government. They support interventions that channel behavior without taking away consumers' ability to choose for themselves. Such "benign paternalism" can lead to very dramatic behavioral changes. But benign paternalism does not give government true authority to control our lives and does not give private agents an incentive to reject such authority through black markets and other corrosive violations of the rule of law. The authors discuss five examples of policy interventions that will generate significant welfare gains without reducing consumer liberties. They believe that all policy proposals should be viewed with healthy skepticism. No doctor would prescribe a drug that only worked in theory. Likewise, economic policies should be tested with small-scale field experiments before they are adopted.Macroeconomics ; Economics ; Economic policy

Cigarette Taxes and the Social Market

Previous researchers have argued that the social market for cigarettes insulates its participants from policies designed to curb youth smoking. Using state Youth Risk Behavior Survey data, we examine whether recent changes in state cigarette taxes affected how young smokers obtained their cigarettes. Our estimates suggest that tax increases reduce youth smoking participation primarily through their effect on third-party purchase, although there is evidence that they are negatively related to borrowing among younger teenagers and negatively related to direct purchase among older teenagers.youth smoking, cigarette taxes

Cigarette taxes and the social market

Previous researchers have argued that the social market for cigarettes insulates its participants from policies designed to curb youth smoking. Using state Youth Risk Behavior Survey data, we examine whether recent changes in state cigarette taxes affected how young smokers obtained their cigarettes. Our estimates suggest that tax increases reduce youth smoking participation primarily through their effect on third-party purchase, although there is evidence that they are negatively related to borrowing among younger teenagers and negatively related to direct purchase among older teenagers

Wet Laws, Drinking Establishments, and Violent Crime

Drawing on county-level data from Kansas for the period 1977-2011, we examine whether plausibly exogenous increases in the number of establishments licensed to sell alcohol by the drink are related to violent crime. During this period, 86 out of 105 counties in Kansas voted to legalize the sale of alcohol to the general public for on-premises consumption. We provide evidence that these counties experienced substantial increases in the total number of establishments with on-premises liquor licenses (e.g., bars and restaurants). Using legalization as an instrument, we show that a 10 percent increase in drinking establishments is associated with a 4 percent increase in violent crime. Reduced-form estimates suggest that legalizing the sale of alcohol to the general public for on-premises consumption is associated with an 11 percent increase in violent crime

Chiral Transition of SU(4) Gauge Theory with Fermions in Multiple Representations

We report preliminary results on the finite temperature behavior of SU(4) gauge theory with dynamical quarks in both the fundamental and two-index antisymmetric representations. This system is a candidate to present scale separation behavior, where fermions in different representations condense at different temperature or coupling scales. Our simulations, however, reveal a single finite-temperature phase transition at which both representations deconfine and exhibit chiral restoration. It appears to be strongly first order. We compare our results to previous single-representation simulations. We also describe a Pisarski-Wilczek stability analysis, which suggests that the transition should be first order.Comment: 8 pages, 5 figures. Presented at at Lattice 2017, the 35th International Symposium on Lattice Field Theory, Granada, Spain, 18-24 June 201

Climate Change, Agricultural Production and Civil Conflict: Evidence from the Philippines

Climate change is predicted to affect global rainfall patterns, but there is mixed evidence with regard to the effect of rainfall on civil conflict. Even among researchers who argue that rainfall reduces civil conflict, there is disagreement as to the underlying mechanism. Using data from the Philippines for the period 2001-2009, we exploit seasonal variation in the relationship between rainfall and agricultural production to explore the connection between rainfall and civil conflict. In the Philippines, above-average rainfall during the wet season is harmful to agricultural production, while above-average rainfall during the dry season is beneficial. We show that the relationship between rainfall and civil conflict also exhibits seasonality, but in the opposite direction and with a one-year lag. Consistent with the hypothesis that rebel groups gain strength after a bad harvest, there is evidence that lagged rainfall affects the number of violent incidents initiated by insurgents but not the number of incidents initiated by government forces. Our results suggest that policies aimed at mitigating the effect of climate change on agricultural production could weaken the link between climate change and civil conflict

The glucocorticoid-Angptl4-ceramide axis induces insulin resistance through PP2A and PKCζ.

Chronic glucocorticoid exposure is associated with the development of insulin resistance. We showed that glucocorticoid-induced insulin resistance was attenuated upon ablation of Angptl4, a glucocorticoid target gene encoding the secreted protein angiopoietin-like 4, which mediates glucocorticoid-induced lipolysis in white adipose tissue. Through metabolomic profiling, we revealed that glucocorticoid treatment increased hepatic ceramide concentrations by inducing enzymes in the ceramide synthetic pathway in an Angptl4-dependent manner. Angptl4 was also required for glucocorticoids to stimulate the activities of the downstream effectors of ceramide, protein phosphatase 2A (PP2A) and protein kinase Cζ (PKCζ). We further showed that knockdown of PP2A or inhibition of PKCζ or ceramide synthesis prevented glucocorticoid-induced glucose intolerance in wild-type mice. Moreover, the inhibition of PKCζ or ceramide synthesis did not further improve glucose tolerance in Angptl4-/- mice, suggesting that these molecules were major downstream effectors of Angptl4. Overall, our study demonstrates the key role of Angptl4 in glucocorticoid-augmented hepatic ceramide production that induces whole-body insulin resistance