MS&E 147 Lecture Notes - Lecture 23: Rent-Seeking, Regulatory Capture, Parliamentary System
7 Mar 2017
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Document Summary
Capture and rent seeking, interest groups and political institutions, bureaucratic structure, policymaking process. Regulatory capture: get close to the people they are supposed to regulate, regulator and regulated are colluding. Rent seeking: gain economic advantage by manipulating rules to make sure to establish monopoly, try to benefit at expense at other people. Parliamentary system: election of many parties and members. Ease of enacting legislation: very hard to change in two party system with checks and balances. Every single member of congress is target for lobbying and funding by financial industry. European commission: main executive and administrative body, initiates legislation and implements decision. Council ministers: executive and legislative functions, supermajority voting. Cumbersome structure - bunch of nations with own system, eurozone, and complete mess, in addition to their overlying structure. Bank of international settlement bis, world bank, international monetary fund, basel. Germany threatens to abandon basel talk if demands not met. Banks that are sponsored by national government: cheaper funding.
