Not equitable,not efficient: U.S. policy on low-level radioactive waste disposal

Elected officials and policy analysts alike often treat equity and efficiency as distinct concerns. In this case study, focusing on U.S. policy for disposing of low-level radioactive waste, we consider an instance where the distinction between equity and efficiency is difficult to sustain. The “equity, then efficiency” approach embodied in the compact system of regional agreements is largely to blame for the current crisis facing generators, regulatory officials, and citizens. We find that nearly three times more waste disposal facilities are being contemplated than are financially viable. More generally, it is claimed that the approach for achieving an equitable solution must be very carefully designed, and that the concept of economic efficiency must be considered (at least in this case study) as part of the definition of equity. This case study is unusual, because we are able to make a recommendation that improves both efficiency and equity.     

Interest group activity and long-run stock market performance

This paper provides evidence that interest group activity is negatively related to aggregate stock market performance. In particular, the findings imply that a one percent increase in the number of interest groups in a country is associated with a reduction in average annual stock market returns of roughly 2–5%, and a reduction in the volatility of annual stock returns of roughly 6–14%. In addition, the findings indicate that many of the same fundamentals that drive economic growth also explain stock market performance.