Economic Perspectives

When I read economics articles, I'm often struck by the absence of citations to the legal literature. Citations to legal works, even when very much on point, are frequently missing from literature reviews and citation lists. There are exceptions to be sure.  Some notable articles and scholars are cited routinely, and I've also noticed that economists will cite articles in some of the law & economics journals (like JLE and JLEO), but then economists also publish in those journals.

For the umpteenth time, President Obama has announced that his solution to the foreclosure crisis is to encourage "responsible" homeowners to refinance at lower interest rates.  Adopting the Tea Party rhetoric and blaming home buyers who got houses in 2006 for their inability to foresee what few economists foresaw, Obama has steadfastly refused to push for principal reductions and payment suspensions for homeowners behind in payments, lest their luckier neighbors who bought at lower prices become resentful.  As a result, he continues to offer help t

The Administration seems to have cut a deal to extend the payroll tax cut, which is a smart economic move in terms of trying to support demand. But it's being paid for by an increase in the "G-fee" (guarantee fee) charged by FHA and Fannie Mae and Freddie Mac on the loans they purchase. In other words, anyone refinancing or taking out a mortgage now will be subsidizing reduced payroll taxes.