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Are Legislators Beating The Market With Insider Information?

Are Legislators Beating The Market With Insider Information?

FromNot Another Politics Podcast


Are Legislators Beating The Market With Insider Information?

FromNot Another Politics Podcast

ratings:
Length:
50 minutes
Released:
Oct 12, 2022
Format:
Podcast episode

Description

There might not be a more controversial political hack than members of Congress being legally allowed to trade stocks. Infamously, House Speaker Nancy Pelosi, one of the wealthiest members of Congress, has been regularly accused of insider trading.

Recently the House of Representatives has introduced a bill that would prohibit members of Congress, their spouses, and children, from trading stocks. Although the bill has stalled, it's renewed a really important lingering question: are members of Congress actually advanced investors, and how much are they benefiting from inside information?

In a 2014 paper by University of Chicago's Andy Eggers and Stanford University's Jens Hainmueller titled, Political Capital: Corporate Connections and Stock Investments in the U.S. Congress, they look at a wide data set of investments made by hundreds of members of Congress between 2004 and 2008, to see whether or not they're getting an unfair advantage. The results may surprise you.
Released:
Oct 12, 2022
Format:
Podcast episode

Titles in the series (100)

With all the noise created by a 24/7 news cycle, it can be hard to really grasp what's going on in politics today. We provide a fresh perspective on the biggest political stories not through opinion and anecdotes, but rigorous scholarship, massive data sets and a deep knowledge of theory. Understand the political science beyond the headlines with Harris School of Public Policy Professors William Howell, Anthony Fowler and Wioletta Dziuda. Our show is part of the University of Chicago Podcast Network.