Let’s Stimulate Private Risk Taking

Alberto Alesina and Luigi Zingales
Wall Street Journal

In virtually all economics classes, including those taught by the many excellent economists on the Obama team, the idea of government spending as an engine for growth is not a popular topic. Yet despite their skepticism of Keynesianism in the classroom, when it comes to public policy, these economists happily endorse a large stimulus package that could bring our deficit to 10% of GDP. Why?

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CONTRIBUTOR
Robert C. McCormack Professor of Entrepreneurship and Finance
David G. Booth Faculty Fellow


RESEARCH INTERESTS
Theory of the firm
Relationship between organization and financing
Going-public decisions