The recent financial crisis has deeply affected the well-being of people across the globe and reignited interest in an old and important public policy question: How should financial markets be structured and what is the role of government regulation in ensuring that the financial system functions efficiently? Are financial crises in the US and abroad indeed inevitable? What can theory and evidence-based economic research teach us about how monetary, fiscal and tax policy should be designed?
Economists associated with the University of Minnesota have long played a central role in the analysis of financial market regulation. The Institute invests in research that engages in these questions and encourages dialogue on these topics among economic theorists, policymakers and business leaders.
Grocery delivery services have seen rapid growth in recent years, a trend which has accelerated during the COVID-19 pandemic as consumers sought ways to navigate stay-at-home orders and to minimize risk of possible exposure to the virus.
Doctoral student Vitoria R. de Castro uses the grocery delivery sector to examine switching costs and how firms make strategic entry decisions. She develops a model which provides a useful setup for both demand- and supply-related questions relevant for current antitrust policy discussions around digital platforms in markets where geography also affects costs and competition. Read more about de Castro's research.
This research insight from undergraduate research assistant Mikolaj Dueholm looks at the Dodd-Frank Act of 2010, which mandated new disclosures for all firms regardless of sector. What impact have these new disclosure requirements had? Through examining firm disclosures since the implementation of the Dodd-Frank Act, Dueholm has begun to uncover interesting insights and possibilities for future research.
In June of 2016, voters in the United Kingdom decided to leave the European Union, a decision popularly known as Brexit. This dissolution meant that trade costs would rise and multinational firms of the United Kingdom and European Union would no longer enjoy free movement of capital across each other's borders. Professor Ellen McGrattan and Minnesota alumna Andrea Waddle apply a multi-country dynamic general equilibrium model to estimate the impact of higher trade costs and capital restrictions on foreign investment, production, and welfare in the United Kingdom and beyond. Read about their findings.