Error and bias in benefit-cost analysis: HUD's case for the wind rule

Article Abstract:

The benefit-cost analysis conducted by the US Department of Housing and Urban Development (HUD) to set stricter wind resistance standards for the construction of manufactured housing is flawed and biased towards government regulation. HUD uses a wrong formula to compute the incidence of private costs and fails to shift the demand curve to reflect the claimed increase in quality. In estimating foregone damages, HUD confuses expenditure with costs. The wind rule hardly improves on the quality of manufactured houses, and raises their prices in Wind Zones II and III.

Standards, Evaluation, Laws, regulations and rules, United States. Department of Housing and Urban Development, Cost benefit analysis, Modular houses, Prefabricated houses

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Reputation and the efficiency of legal rules

Article Abstract:

The efficiency arguments for establishing a strict liability rule's superiority over caveat emptor and negligence rules and vindicating breaches of contracts are found to be weak despite being within their frame of reference. Strict liability is considered to be better because the price premium makes up for the tendency of customers to underrate the cost of defects in a product. Results show that strict liability can disprove the rule's claims on efficiency and create overly high prices.

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Social security: rates of return and the fairness of benefits

Article Abstract:

The social security system should undergo some important changes to reduce the current system's bias. Gender differences are expected to decrease through time, while a disparity in incomes will likely continue with the acceptance of progressivity. Problems in marital status and age are expected to plague the existing benefits structure. Earnings sharing, which can barely solve couple inequities, does not solve the problem of unequal treatment offered to various age groups.

Social security

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