Since low interest rates insufficiently boosted economic activity, monetary authorities are risking unintended consequences with negative interest rates.
This week’s economic news summary includes disputes about Kobe Bryant and intellectual property, Puerto Rican and Super Bowl subsidies, and deficit worries.
Government subsidies can have unintended consequences because of the incentive to use more of a good or a service than the market has allocated.
This week’s economic news summary included looking at human capital from a health care and college perspective and at area codes as conspicuous consumption.
With some unintended consequences, a large self-insured employer cut health care spending by switching from free employee health care to a high deductible.
On the post secondary institution side of the student loan crisis, eligible Title IV schools charge higher tuition than similar non Title IV schools.