Publications

Martin Shubik

• Policy Note 2009/6 | May 2009

  The “Unintended Consequences” Game

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  A simple consideration of history tells us that each new piece of legislation contains loopholes that benefit a new class of entrepreneurs; some of these loopholes are small, but others are such that one could drive a bullion-laden truck through them. In this new Policy Note, Martin Shubik suggests creating a “war gaming group” to stress-test all major new legislation, with a first prize of $1 million to be awarded to the competing lawyer or team of lawyers who finds the most egregious loophole—a small amount relative to the potential savings.

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  Policy Note 2009/6

  Associated Program(s):

  Monetary Policy and Financial Structure Economic Policy for the 21st Century

  Author(s):

  Martin Shubik

  

• Policy Note 2009/5 | April 2009

  A Proposal for a Federal Employment Reserve Authority

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  There is already considerable talk about the possible need for a massive public works program in response to the deepening recession and rising unemployment; however, an ad hoc emergency approach is going to waste billions of dollars by mismatching skills and needs. In this new Policy Note, Martin Shubik of Yale University outlines a proposal aimed directly at providing good planning consistent with maintaining market freedom and minimizing pork-barrel legislation. Rather than an emergency relief program on the order of the New Deal Works Progress Administration, Shubik proposes a permanent agency modeled on the Federal Reserve that would monitor unemployment in each state and maintain a list of potential public works projects. Financing for any project could then be set in place as soon as the unemployment level in any state exceeded the trigger value, eliminating the need for relief legislation during a crisis.

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  Policy Note 2009/5

  Associated Program:

  Employment Policy and Labor Markets

  Author(s):

  Martin Shubik

  

• Policy Note 2009/4 | April 2009

  A Crisis in Coordination and Competence

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  The ad hoc emergency approach to the current economic crisis has a great chance of wasting billions of dollars by mismatching skills and needs. According to Martin Shubik of Yale University, the current deepening recession needs a “quick fix” solution now, but a longer-fix solution must be put into place along with it.

  There is already considerable talk about the possible need for a large public works program to follow the massive infusion of funds into the financial and automobile sectors. But who is going to manage it? For us to weather this great economic storm we need to line up and coordinate (at least) four sets of highly different talents—political, bureaucratic, financial, and industrial. Without their coordination, economic recommendations, no matter how good they may appear to be in theory, will fail in execution.

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  Policy Note 2009/4

  Associated Program(s):

  Monetary Policy and Financial Structure Employment Policy and Labor Markets

  Author(s):

  Martin Shubik