Regulation Contagion

Well the years start coming and they don't stop coming
Fed to the rules and I hit the ground running
Didn't make sense not to live for fun
Your brain gets smart but your head gets dumb
--Smash Mouth

Just a quick missive to record the cite for future reference. Just chewed thru an outstanding paper by David Hirshleifer of Cal Irvine on the psychological biases of financial regulation. Can't link the pdf here but this is truly recommended reading for anyone seeking to understand the mechanisms of behavioral economics as they apply to government regulation of any kind.

Perhaps in a future post I'll summarize some of Prof Hirshleifer's key points here.

Reference

Hirshleifer, D. 2008. Psychological bias as a driver of financial regulation. European Financial Management, 14: 856-874.