The Yale Law Journal

VOLUME
124
2014-2015
Collection

Cost-Benefit Analysis of Financial Regulation

22 Jan 2015

Responses to John C. Coates IV, Cost-Benefit Analysis of Financial Regulation: Case Studies and Implications, 124 Yale L.J. 882 (2015).

Forum

Cost-Benefit Analysis of Financial Regulations: A Response to Criticisms

Eric A. Posner & E. Glen Weyl

In two recent articles, we urged financial regulators to use cost-benefit analysis (CBA) to evaluate financial regulations.1 John Coates has emerged as a leading critic of this view.2 In this essay, we respond to his objections. We make several points. First, Coates conflates two separate …

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Financial Regulation and Cost-Benefit Analysis

Cass R. Sunstein

I. what government doesn’t know Cost-benefit analysis is best understood as a way for agencies to ensure that their decisions are informed—that they are based on knowledge about likely consequences, rather than on dogmas, intuitions, hunches, or interest-group pressures.1 But when agen…

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Economists in the Room at the SEC

Bruce R. Kraus

The SEC’s economic analysis has been under fire in recent years. This essay argues that the agency’s response to successful challenges to its rules has produced real progress in the SEC’s rulemaking process as well. The SEC has refined its internal processes and improved its work produc…

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Cost-Benefit Analysis of Financial Regulation: A Reply

John C. Coates IV

Let me begin by thanking Professors Posner, Weyl, and Sunstein, and Mr. Kraus, for their thoughtful and thought-provoking replies, and the editors of the Yale Law Journal for organizing this exchange. The comments are rich, and a full response would take on the size of another article—but …