December 2012 Archives

On Risk and Gambling

From the Deseret News on Tuesday.

This past week the U.S. Commodity Futures Trading Commission issued a complaint against the online prediction market firm Intrade. Intrade is based in Ireland, so the complaint does not shut down the company, but it does effectively lock out U.S. residents from participating in the market. The ostensive reason for the complaint is that Intrade has been offering off-exchange options, which seems to mean that it has been offering online gambling.
A great blog post from John Cochrane.

A good sample of the content:

On reflection, it's amazing that computerizing medical records was part of the ACA and stimulus bills. Why in the world do we need a subsidy for this? My bank computerized records 20 years ago. Why, in fact, do doctors not answer emails, and do they still send you letters by post office, probably the last business to do so, or maybe grudgingly by fax? Why, when you go to the doctor, do you answer the same 20 questions over and over again, and what the heck are they doing trusting your memory to know what your medical history and list of medications are? Well, this is a room full of health policy wonks so you know the answers. They're afraid of being sued. Confidentiality regulations, apparently more stringent than those for your money in the bank. They can't bill email time. Legal and regulatory roadblocks.

So, medical records offer a good parable: rather than look at an obvious pathology, and ask "what about current law and regulation is causing hospitals to avoid the computer revolution that swept banks and airlines 20 years ago," and remove those roadblocks, the government adds a new layer of subsidies and contradictory legal pressure.

Authors

  • Richard W. Evans is an Assistant Professor of Economics at Brigham Young University

  • Jason DeBacker is an Assistant Professor of Economics at Middle Tennessee State University

  • Kerk L. Phillips is an Associate Professor of Economics at Brigham Young University