Home - Clark Center Forum

The Forum for the Kent A. Clark Center for Global Markets is home to the European, Finance, and US Economic Experts Panels as well as a repository of thoughtful, current, and reliable information regarding topics of the day.

The Tax Cuts and Jobs Act (TCJA) of 2017

Question A:

US GDP is substantially higher now as a result of the passage of the TCJA than it would have been had the TCJA not been passed, and all else was equal.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question B:

Corporate capital stock is substantially higher now as a result of the passage of the TCJA than it would have been had the TCJA not been passed, and all else was equal.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question C:

Real median wages are substantially higher now as a result of the passage of the TCJA than they would have been had the TCJA not been passed, and all else was equal.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question D:

Federal tax revenues are substantially lower now as a result of the passage of the TCJA than they would have been had the TCJA not been passed, and all else was equal.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question E:

Charitable donations are substantially lower now as a result of the passage of the TCJA than they would have been had the TCJA not been passed, and all else was equal.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Economic Growth, Development, & Productivity

November 20, 2023

Modern Portfolio Theory

Finance

Modern Portfolio Theory

Question A:

Harry Markowitz, the Nobel Prize-winning pioneer of modern portfolio theory, passed away earlier this year:
https://afajof.org/news/in-memoriam-harry-markowitz-past-president-of-the-american-finance-association-1927-2023/

Application of the principles of modern portfolio theory allows investors in practice to achieve substantial improvements in the risk-expected return trade-off relative to naive strategies such as equal-weighting that do not take account of return covariances.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question B:

Widespread adoption of modern portfolio theory by investors has substantially improved the efficiency of capital allocation in financial markets.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Financial Markets & Banking

November 15, 2023

Land Value Tax

Shifting the burden of municipal property taxes towards land and away from improvements such as buildings - as proposed in the Detroit land value tax plan - will enhance the incentives for owners to develop their land and thereby give a substantial boost to local economic growth over a ten-year horizon.

Clark Center Economic Experts Panel

November 2, 2023

Quantitative Tightening and Demand for US Treasuries

Finance

Quantitative Tightening and Demand for US Treasuries

This Finance survey examines (a) The Federal Reserve has begun quantitative tightening (QT) to reduce the size of its balance sheet. Fed holdings of Treasury securities have declined by $800 billion relative to the March 2020 peak. The Fed currently holds $4.9 trillion of Treasury securities, significantly larger than the $2.5 trillion holdings prior to the Covid pandemic. A reduction in Fed holdings of Treasury securities measurably increases the interest rate on long-term U.S. Treasury bonds (b) A reduction in Fed holdings of Treasury securities measurably increases volatility in the Treasury market

Bonds

October 25, 2023

Women and the Labor Market

Europe

Women and the Labor Market

This European survey examines (a) By enabling women’s life choices about education, work and family, the contraceptive pill made a substantial contribution to closing gender gaps in the labor market for professionals; (b) Gender gaps in today’s labor market arise less from differences in educational and occupational choices than from the differential career impact of parenthood and social norms around men's and women’s roles in childrearing; (c) The gender gap in pay would be substantially reduced if firms had fewer incentives to offer disproportionate rewards to individuals who work long and/or inflexible hours

Demographics, Aging, & Gender

October 19, 2023

Women and the Labor Market

This US survey examines (a) By enabling women’s life choices about education, work and family, the contraceptive pill made a substantial contribution to closing gender gaps in the labor market for professionals; (b) Gender gaps in today’s labor market arise less from differences in educational and occupational choices than from the differential career impact of parenthood and social norms around men's and women’s roles in childrearing; (c) The gender gap in pay would be substantially reduced if firms had fewer incentives to offer disproportionate rewards to individuals who work long and/or inflexible hours

Demographics, Aging, & Gender

October 18, 2023

Long-Term Capital Management

Finance

Long-Term Capital Management

This Finance survey examines: (a) September 2023 was the 25th anniversary of the collapse of Long-Term Capital Management (LTCM). In response to LTCM's troubles, the Federal Reserve orchestrated a multi-billion dollar rescue package by a consortium of banks and it cut the Federal funds rate target by 75 basis points within six weeks. The hedge fund sector's contribution to systemic risk is substantially lower today than at the time of LTCM; (b) Financial market participants' expectation that the Fed will aggressively ease monetary policy in response to financial market dislocations is a substantial source of financial instability.

Financial Crises

October 9, 2023

Responses To Market Power

Europe

Responses To Market Power

This European survey examines (a) Constraints on the anti-competitive behavior of dominant firms in the digital economy can in principle be effectively implemented using the existing tools of competition policy and antitrust enforcement; (b) The effectiveness of existing antitrust regimes in constraining anti-competitive behavior is substantially limited by the inadequacy of the resources available to competition and regulatory agencies relative to the dominant firms of the digital economy; (c) Constraints on the anti-competitive behavior of dominant firms in the digital economy would be more effectively implemented than at present with ex-ante regulation such as Europe's Digital Markets Act and other forms of public utility regulation. Details on Digital Markets Act here: https://digital-markets-act.ec.europa.eu/index_en

Regulation, Competition, & Market Power

September 29, 2023

Responses To Market Power

This US survey examines (a) Constraints on the anti-competitive behavior of dominant firms in the digital economy can in principle be effectively implemented using the existing tools of competition policy and antitrust enforcement; (b) The effectiveness of existing antitrust regimes in constraining anti-competitive behavior is substantially limited by the inadequacy of the resources available to competition and regulatory agencies relative to the dominant firms of the digital economy; (c) Constraints on the anti-competitive behavior of dominant firms in the digital economy would be more effectively implemented than at present with ex-ante regulation such as Europe's Digital Markets Act and other forms of public utility regulation. Details on Digital Markets Act here: https://digital-markets-act.ec.europa.eu/index_en

Regulation, Competition, & Market Power

September 29, 2023

Subsidizing Green Technology

Europe

Subsidizing Green Technology

This European survey examines (a) Government subsidies for investment in green technologies are justified by substantial benefits coming from reducing unpriced carbon emissions and generating positive R&D spillovers; (b) Using subsidies for green technologies instead of full carbon prices will lead to substantially more rent-seeking and hence substantially higher costs to achieve a given reduction in emissions

Environment, Climate Change, & Natural Resources

September 29, 2023