Calls for benefit-cost analysis in rule-making based on the Dodd-Frank Wall Street Reform Act have revealed a paucity of work on allocative efficiency in financial markets. We propose three principles to help fill this gap. First, we highlight the need to quantify the "statistical cost of a...

Financial regulators should use cost-benefit analysis (CBA) to evaluate financial regulations. Finance is an ideal domain for CBA because the direct costs and benefits of financial activity can be easily monetized, and a huge amount of data exists for calculating the relevant valuations. John...

The two most vilified cases in administrative law are Business Roundtable v. SEC and Corrosion Proof Fittings v. EPA. In Business Roundtable, the D.C. Circuit struck down the SEC's proxy access rule because the agency's cost-benefit analysis of the regulation, in the court's view, was defective....