BUSINESS CYCLES AND RACIAL DISPARITIES IN PUNISHMENT

Deeply rooted historical patterns allow us to make a correlation between imprisonment and unemployment and the marginalization of blacks. This paper examines the interrelationships among criminal activity, punishment, and cycles of the economic system based on the influence of political and economic forces on forming penal policies. The penal system is viewed as a device by which labor market fluctuations can be regulated. We examine differences between blacks and whites and between the North and the South to arrive at this paper's thesis: that race provides the link among economic cycles, employment, and crime.     

The effect of water hardness on washing performance of built and unbuilt surfactants

Five different surfactants were used at 2.0% concentrations. The most and least effective were found to be Synthrapol N and Ahcowet RS respectively; based on their rating of whiteness index. Synthrapol N and Ahcowet RS were evaluated with the addition of sodium carbonate, sodium tripolyphosphate and a 1:1 combination of the two builders. In both cases the addition of a builder improved the cleaning efficiency of the surfactant. Although each builder alone improved the cleaning efficiency, the combination of sodium carbonate and sodium tripolyphosphate improved efficiency at a lower total concentration.     

Indirect Tax Exemptions and the Distribution ot Lifetime Income: A Simulation Analysis*

This paper uses a simulation model to compare the lifetime consequences of a revenue neutral partial shift towards a consumption tax, involving exemptions, with its cross-sectional effects. Exemptions of goods consumed proportionately more by lower income groups reduce the inequality of the distribution of net lifetime consumption by more than in the cross-sectional case. However, the tax shift increases lifetime inequality by more than it increases cross-sectional inequality, and the net effect is that exemptions cannot compensate for the income tax change. Concern with inequality is most appropriately handled by raising transfer payments rather than introducing exemptions.     

Financial Innovations,Money Demand,and the Welfare Cost of Inflation

In the 1990s, the empirical relationship between money demand and interest rates began to fall apart. We analyze to what extent financial innovations can explain this breakdown. For this purpose, we construct a microfounded monetary model with a money market that provides insurance against liquidity shocks by offering short‐term loans and by paying interest on money market deposits. We calibrate the model to U.S. data and find that the introduction of the sweep technology at the beginning of the 1990s, which improved access to money markets, can explain the behavior of money demand very well. Furthermore, by allowing a more efficient allocation of money, the welfare cost of inflation decreased substantially.     

Did FinTech Lenders Facilitate PPP Fraud?

In the $793 billion Paycheck Protection Program, we examine metrics related to potential misreporting including nonregistered businesses, multiple businesses at residential addresses, abnormally high implied compensation per employee, and large inconsistencies with jobs reported in another government program. These measures consistently concentrate in certain FinTech lenders and are cross-verified by seven additional measures. FinTech market share increased significantly over time, and suspicious lending by FinTechs in 2021 is four times the level at the start of the program. Suspicious loans are being overwhelmingly forgiven at rates similar to other loans.     

Do Municipal Bond Dealers Give Their Customers “Fair and Reasonable” Pricing?

Municipal bonds exhibit considerable retail pricing variation, even for same-size trades of the same bond on the same day, and even from the same dealer. Markups vary widely across dealers. Trading strongly clusters on eighth price increments, and clustered trades exhibit higher markups. Yields are often lowered to just above salient numbers. Machine learning estimates exploiting the richness of the data show that dealers that use strategic pricing have systematically higher markups. Recent Municipal Securities Rulemaking Board rules have had only a limited impact on markups. While a subset of dealers focus on best execution, many dealers appear focused on opportunistic pricing.