Dambisa Moyo’s new book, Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa, has received a great deal of attention in the last few months. Moyo’s book is a must-read for any person interested in the question of why some countries are rich while others remain stagnant or poor.

In the public sector, no tool adjusts spending to changing conditions. In the current recession, many states have decreased revenues, but little decreased spending has been seen. This pattern raises a difficult question: How do states correct for the inflexibility in spending cuts?

On November 7th, 2003, the Fund for the Study of Spontaneous Orders, the Atlas Economic Research Foundation, the Mercatus Center at George Mason University, and the Institute for Humane Studies honored Vincent and Elinor Ostrom with a Lifetime Achievement Award for their pioneering contributions to the field of political economy through their work on institutional reform, common pool resources, self-governance, and a variety of other topics. In honor of this award, Paul Dragos Aligica interviewed the scholars on their work in institutional analysis.

In this Mercatus on Policy, Richard Williams and Katelyn Christ of the Mercatus Center discuss the dangers and shortfalls of excise taxes.