Knowledge Problem

Regulating Hedge Funds

Michael Giberson

At Marginal Revolution, Tyler Cower links to a year-old paper asking and trying to answer the question: Should hedge funds be regulated? [PDF] Generally the authors dismiss consumer protection reasons for hedge fund regulation, but do express some concern over systemic risk. (Systematic risk explained via Wikipedia; here is an NBER paper saying systemic risk is on the rise and hedge funds are involved.)